Labor Law and Social Legislation

REDENTOR AGBAYANI
Labor Law and Social Legislation

FUNDAMENTAL PRINCIPLES AND CONCEPTS

A. SOURCES OF LABOR LAWS...................................................................................2
1. 1987 Constitution..................................................................................................2
2. Civil Code...............................................................................................................2
3. Labor Code.............................................................................................................2
4. Department of Labor and Employment (DOLE) Issuances....................................2
5. Jurisprudence.........................................................................................................3
B. STATE POLICIES.................................................................................................... 3
1. Labor as Primary Social Economic Force...............................................................3
2. Full Protection to Labor.........................................................................................3
3. Security of Tenure.................................................................................................3
4. Social Justice..........................................................................................................3
5. Equal Work Opportunities.....................................................................................3
6. Right to Self-Organization and Collective Bargaining ...........................................3
7. Construction in Favor of Labor..............................................................................3

RECRUITMENT AND PLACEMENT OF WORKERS

A. RECRUITMENT AND PLACEMENT OF LOCAL AND MIGRANT WORKERS................3
1. Regulatory Authorities...........................................................................................3
a. Department of Migrant Workers........................................................................3
b. DOLE Secretary; Regulatory and Visitorial Powers.............................................3
2. Regulation of Recruitment and Placement Activities............................................3
a. Ban on Direct Hiring; Exceptions.........................................................................3
b. Entities and persons prohibited from recruiting................................................3
c. Non-transferability of License or Authority........................................................3
d. Suspension or cancellation of license or authority.............................................3
e. Prohibited Practices............................................................................................4
f. Illegal Recruitment...............................................................................................4
g. Solidary Liability of Local Recruitment Agency and Foreign Employer...............4
h. Termination of Contract of Migrant Workers.....................................................4
B. EMPLOYMENT OF NON-RESIDENT ALIENS............................................................4

EMPLOYER-EMPLOYEE RELATIONSHIP
A. EMPLOYER-EMPLOYEE RELATIONSHIP.................................................................5
1. Tests to Determine Employer-Employee Relationship..........................................5
2. Kinds of Employment.............................................................................................5
a. Regular................................................................................................................5
b. Casual..................................................................................................................5
c. Probationary........................................................................................................5
d. Project.................................................................................................................6
e. Seasonal..............................................................................................................6
f. Fixed-Term............................................................................................................6
3. Related Concepts...................................................................................................6
a. Floating Status.....................................................................................................6
b. Employment Subject to a Suspensive Condition................................................6
B. LEGITIMATE CONTRACTING VS. LABOR-ONLY CONTRACTING...............................6

LABOR STANDARDS
A. CONDITIONS OF EMPLOYMENT...........................................................................7
1. Covered Employees; Exceptions............................................................................7
2. Hours of work........................................................................................................7
a. Normal hours of work.........................................................................................7
b. Meal periods.......................................................................................................7
c. Night-shift............................................................................................................7
d. Overtime work....................................................................................................7
e. Compressed work week, flexible work arrangement, alternative work arrangements, telecommuting program 7
f. Non-compensable hours......................................................................................8
3. Rest periods ..........................................................................................................8
4. Holidays..................................................................................................................8
5. Service charges......................................................................................................9
6. Occupational Safety and Health Standards Law....................................................9
B. WAGES................................................................................................................. 9
1. Components and Exclusions..................................................................................9
a. Wages..................................................................................................................9
b. Facilities............................................................................................................10
c. Supplements......................................................................................................10
d. Bonus................................................................................................................10
e. 13th Month Pay................................................................................................11
f. Holiday Pay.........................................................................................................11
2. Principles..............................................................................................................11
a. No Work, No Pay...............................................................................................11
b. Equal Pay for Equal Work..................................................................................11
c. Fair Wage for Fair Work.....................................................................................11
d. Non-Diminution of Benefits..............................................................................11
3. Payment of Wages...............................................................................................12
4. Prohibitions Regarding Wages.............................................................................12
5. Wage Distortion...................................................................................................12
6. Minimum Wage...................................................................................................12
C. LEAVES............................................................................................................... 13
1. Service Incentive Leaves......................................................................................13
2. Leaves under Special Laws...................................................................................13
a. Expanded Maternity Leave...............................................................................13
b. Paternity Leave.................................................................................................14

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Labor Law and Social Legislation
REDENTOR AGBAYANI

c. Solo Parent Leave..............................................................................................14

d. Gynecological Leave..........................................................................................14
e. Battered Woman Leave ....................................................................................14
D. SPECIAL GROUPS OF EMPLOYEES.......................................................................15
1. Women ................................................................................................................15
2. Minors..................................................................................................................15
3. Kasambahay.........................................................................................................16
4. Homeworkers.......................................................................................................17
5. Night Workers......................................................................................................17
6. Apprentices and Learners....................................................................................18
7. Persons with Disabilities......................................................................................18
E. SEXUAL HARASSMENT IN THE WORK ENVIRONMENT; SAFE SPACES ACT...........18
F. DISCRIMINATORY PRACTICES..............................................................................19
1. Age.......................................................................................................................19
2. Gender and Marital Status..................................................................................19
3. Pregnant Women.................................................................................................19
4. Illness...................................................................................................................19
5. Solo Parents.........................................................................................................19

MANAGEMENT PREROGATIVE
A. OCCUPATIONAL QUALIFICATIONS......................................................................19
B. PRODUCTIVITY STANDARDS...............................................................................19
C. CHANGE OF WORKING HOURS...........................................................................19
D. TRANSFER OF EMPLOYEES.................................................................................19
E. DISCIPLINE OF EMPLOYEES.................................................................................20
F. GRANT OF BONUSES AND OTHER BENEFITS.......................................................20
G. CLEARANCE PROCESS.........................................................................................20
H. POST-EMPLOYMENT RESTRICTIONS...................................................................20
I. LIMITATIONS ON MANAGEMENT PREROGATIVE, POLICE POWER OF THE STATE..20

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Labor Law and Social Legislation
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FUNDAMENTAL PRINCIPLES AND CONCEPTS and to expansion and growth. The law must protect Labor as the Er stands in a higher
A. SOURCES OF LABOR LAWS footing than the workers.
1. 1987 Constitution
Article II - Declaration of Principles AND STATE Policies 2. Civil Code
Section 9 - promotion of just and dynamic social order that ensures prosperity Article 19 - a person should not use his rights unjustly/contrary to honesty and
and independence of the State through policies on adequate social services, good faith, otherwise he is open for liability
promote full employment, rising standard of living, and an improved quality life Article 1700 - capital and labor relations are not merely contractual and these
for all contracts must yield to the common good
Section 10 - promotion of social justice Article 1701 - Principle of Non-oppression; capital and labor will not act
Section 14 - the role of women in nation-building, ensuring the equality of men oppressively against each other or impair the interest or convenience of the
and women in the law (R.A. 9710 - Magna Carta of Women) public
Section 18 - labor as the primary social economic force and the protection of Article 1702 - in case of doubt, Labor legislations and all Labor contracts must
workers and promote their welfare be made in favor of the safety and decent living of the laborer
Section 20 - recognition on the importance of the private sector, encourages Article 1703 - contract of involuntary servitude is not valid
private enterprise and provides incentives to needed investments Article 1704 - in collective bargaining, Labor union/members of the board or
committee signing the contract shall be liable for non-fulfillment
Article III - Bill of Rights Article 1708 - laborer's wages will not be subject to execution or attachment
Section 1 - equal protection in the eyes of the law except for debts incurred for food, shelter, clothing, and medical attendance
Section 4 - no laws must be passed that impinges the freedom of speech, Article 1709 - Er must neither seize/retain any tool/other articles belonging to
expression or of the press, or the right of the people the laborer
Section 8 - right to create unions, associations, or societies that is not contrary Article 1710 - dismissal or laborer is subject to the supervision of the
to the law (E.O. No. 180 series of 1987) Government under special law
Section 10 - no law impairing the obligation of contracts shall be passed
Section 16 - right to a speedy trial 3. Labor Code
Section 18(2) - no involuntary servitude unless as a punishment under lawful Presidential Decree No. 442/Labor Code of the Philippines - is a legal code
conviction governing employment Practices and labor relations in the Philippines
 signed into law on May 1, '74 effective on November 1, '74
Article XIII - Social Justice and Human Rights  the power to implement is granted to DOLE, SOLE, and other govt.
Section 2 - promotion of social justice must include creating economic agencies tasked w/ the enforcement of the Labor Code
opportunities based on freedom of initiative and self-reliance
Section 3 - full protection to labor, local or overseas, organized or unorganized, DECLARATION OF BASIC POLICY (APERA)
and promote full and equal employment opportunities for all; promotion of 1. Afford full protection to labor
the shared responsibilities between workers and Ers and the preferential use of 2. Promote full Employment
voluntary modes in settling disputes and enforce mutual compliance to foster 3. Ensure equal work opportunities
industrial peace; regulation of the relations between workers and Ers, 4. regulate the relations between workers and Ers
recognizing the right of Labor to its just share in the fruits of production and 5. Assure the rights of the workers
the right of the enterprise to reasonable ROI, and to expansion and growth
Section 13 - establishment of special agency for disabled person for Limitations to the Rule-Making Power Granted by the Labor Code
rehabilitation, self-development and self-reliance and their integration into the 1. Must be issued under the authority of law
mainstream society (R.A. 7277 - Magna Carta for Disabled Person) 2. Must not be contrary to the law and Constitution
Section 14 - protect working women by providing safe and healthful working 3. Must not go beyond the law itself
conditions, taking into account their maternal functions (R.A. 9710)
A rule/regulation promulgated by an administrative body to implement a law in excess
Constitutional provisions on labor are self-executing in the sense that they are of its Rule-making power is void. an administrative interpretation w/c takes away the
automatically acknowledged and observed w/o any enabling legislation but self- benefit granted in the law is done beyond anyone's power (ultra vires).
executing does not mean full exercise of rights
GR: The applicability of the Labor Code is for all workers, w/Er agricultural/non-
BASIC RIGHTS OF WORKERS GUARANTEED BY THE CONSTITUTION agricultural
1. Security of tenure XPN:
2. Living wage 1. Government Ees
3. Share in the fruits of production 2. Ees of govt.-owned and controlled corps
4. Just and humane working conditions 3. Foreign govts.
5. Self-organization 4. International agencies
6. Collective Bargaining 5. Corporate officers/intra-corporate disputes that fall under PD 902-A
7. Collective negotiations 6. Local water district except where the NLRC's (National Labor Relations
8. Engage in peaceful concerted activities including the right to strike Commission) Jurisdiction is invoked
9. Participate in policy and decision-making processes 7. Others provided by the LC
a. The remedy of aggrieved Ee of an international agency/org. is to file a
Rights of Management complaint before the Department of Foreign Affairs
 entitled to respect and enforcement in the interest of simple fair play b. GOCC is created by special charter and is subject to the provisions of
 regulate all aspects of employment the Civil Service Law. Disputes of government Ees shall be handled by
the Public Sector Labor-Management Council.
Fundamental Management Rights (SPIT) c. Corporations under the general Corporation law are subject under the
1. Select Employees Labor Code.
2. Prescribe rules d. Employment relationship is not a precondition to the applicability of
3. reasonable return on Investments the LC.
4. Transfer or discharge employees
Extra-territorial Application of LC - all Filipino workers are protected by the
Limitations of Management Rights Philippines Labor and social legislation and contract stipulations to the contrary
it is never absolute are void.
1. Law
2. Contract (individual/collective) 4. Department of Labor and Employment (DOLE) Issuances
3. General principles of fair play and justice

Basic policy is in favor of Labor to prejudice capital to balance/to coordinate the rights
and interests of both workers and Ers. Articles 3 and 4 of LC explicitly states the shared
responsibility of the Ers and workers and the right of the enterprise to reasonable ROI

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Labor Law and Social Legislation
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5. Jurisprudence
is the philosophy and theory of law.

B. STATE POLICIES
1. Labor as Primary Social Economic Force (Constitution, Art. II, Sec. 18)
labor as the primary social economic force and the protection of workers and
promote their welfare

2. Full Protection to Labor (Constitution, Art. XIII, Sec. 3)

full protection to labor, local or overseas, organized or unorganized, and promote
full and equal employment opportunities for all; promotion of the shared
responsibilities between workers and Ers and the preferential use of voluntary
modes in settling disputes and enforce mutual compliance to foster industrial
peace; regulation of the relations between workers and Ers, recognizing the right
of Labor to its just share in the fruits of production and the right of the enterprise
to reasonable ROI, and to expansion and growth

3. Security of Tenure (Constitution, Art. XIII, Sec. 3)

Labor is entitled to security of tenure, humane conditions of work, and a living
wage, they must also participate in policy and decision-making processes
affecting their rights and benefits as provided by the law

4. Social Justice (Constitution, Art. II, Sec. 10; Labor Code, Art. 218, as
renumbered by DOLE D.A. No. 01-2015)
promotion of social justice; the Commission shall have the power and authority
to: 1. promulgate rules and regulations; 2. administer oaths, summon, issue, and
to testify; 3. conduct investigation, hear, conduct proceedings, adjourn hearings,
and dismiss; 4. hold any person in contempt and impose appropriate penalties;
and 5. enjoin and restrain

5. Equal Work Opportunities (Constitution, Art. XIII, Sec. 3; Labor Code, Art. 3)
full protection to labor, local or overseas, organized, or unorganized, and
promote full and equal employment opportunities for all;(Article 3 of LC) 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

6. Right to Self-Organization and Collective Bargaining (Constitution, Art. XIII,

Sec. 3; Labor Code, Arts. 3 and 253)
guaranteed rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities including the right to strike

7. Construction in Favor of Labor (Labor Code, Art. 4; Civil Code, Art. 1702)
in case of doubts in the implementation and interpreting the law, it must be
resolved in favor of labor; ARTICLE 1702, in case of doubt, all Labor legislation and
labor contracts shall be construed in favor of the safety and decent living.

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Labor Law and Social Legislation
REDENTOR AGBAYANI
RECRUITMENT AND PLACEMENT OF WORKERS
A. RECRUITMENT AND PLACEMENT OF LOCAL AND MIGRANT WORKERS (LABOR 2 Kinds of Illegal Recruiter
CODE, ART. 13) 1. Licensee - performs any prohibited acts under Section 6 of R.A. 8042
1. Regulatory Authorities amended as R.A. 10022
a. Department of Migrant Workers (R.A. No. 11641, Secs. 4-6) 2. Non-licensee - any person, corp., entity:
b. DOLE Secretary; Regulatory and Visitorial Powers (Labor Code, Arts. 33, 36 a. Has not been issued a valid license/authority to engage in
and 37)
Recruitment and placement by the SOLE
2. Regulation of Recruitment and Placement Activities
b. License/authority has been suspended, revoked, or canceled by the
Governing Laws
POEA/SOLE
1. Labor Code
2. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. 8042, amended
Grounds for Suspension/Cancellation of License
R.A 10022)
1. Commission of prohibited acts under Article 34 of LC
2. Publishing of job announcements w/o POEA's approval
Recruitment and Placement (CETCHUP and CRAP)
3. Excessive charging of fees before a worker is employed
1. Any act of Contracting, Employing, Transporting, Canvassing, Hiring,
4. Deployment of workers w/o POEA processing
Utilizing, Procuring
5. Recruitment in places outside of authorized area
2. Includes Contract services, Referrals, Advertising or Promising
employment locally/abroad, for profit/not
Grounds for Revocation of License
1. Incurring accumulated 3 counts of suspension
Persons Deemed Engaged in Recruitment and Placement
2. Violations of the conditions of the license
any person/entity where in any manner, offers/promises for a fee, employment
3. Engaging in acts of misrepresentation
to 2 or more persons
4. Engaging in the recruitment/placement of workers to jobs harmful to the
public health/morality/to the dignity of the country
a. Ban on Direct Hiring; Exceptions (Labor Code, Art. 18)
Direct Hiring - occurs when an Er hires a Filipino overseas w/o going through
POEA or entities authorized by the DOLE e. Prohibited Practices (Labor Code, Art. 34; R.A. No. 8042, as amended by R.A.
No. 10022, Sec. 6; Revised POEA Rules 2016 for Land-based Workers, Part I, Rule
X, Sec. 76)
BAN ON DIRECT HIRING
1. Overcharging: To charge or accept, directly or indirectly, any amount
GR: Er may only employ Filipino workers for overseas employment through
greater than that specified in the schedule of allowable fees prescribed
POEA/entities authorized by the DOLE. (Art. 18, LC)
by the Secretary of Labor, or to make a worker pay any amount greater
XPNs: Direct hiring by:
than that actually received by him as a loan or advance;
1. International orgs.
2. False Notice: To furnish or publish any false notice or information or
2. Name hires - indiv. Workers able to secure contracts on their own efforts
document in relation to recruitment or employment;
and representations w/o any assistance from agencies
3. Misrepresentation to Secure License: To give any false notice, testimony,
3. Members of diplomatic orgs.
information, or document or commit any act of misrepresentation for
4. Workers hired by a relative/family who is a permanent resident of the
the purpose of securing a license or authority under this Code.
host country
4. Inducing worker to quit: To induce or attempt to induce a worker already
employed to quit his employment to offer him to another unless the
Purpose of the Prohibition on Direct Hiring
transfer is designed to liberate the worker from oppressive terms and
1. Ensure best possible terms and conditions of employment for the worker
conditions of employment;
2. Assure the foreign Er that he hires qualified Filipino workers
5. Inducement not to employ: To influence or to attempt to influence any
3. Ensure full regulation of employment to avoid exploitation
person or entity not to employ any worker who has not applied for
employment through his agency;
b. Entities and persons prohibited from recruiting (Labor Code, Art. 26; R.A. No.
6. Recruitment for harmful jobs: To engage in the recruitment or
8042, as amended by R.A. No. 10022, Sec. 6 (j); Revised POEA Rules 2016 for
Land-based Workers, Part II, Rule I, Sec. 3) placement of workers in jobs harmful to public health or morality or to
1. Travel agencies and sales agencies of airline companies - due to conflict the dignity of the Republic of the Philippines;
of interest 7. Obstruction to inspection: To obstruct or attempt to obstruct inspection
2. Officers/members of the board of any corps./members in a partnership by the Secretary of Labor or by his duly authorized representatives;
engaged in the business of travel agencies 8. Failure to submit reports: To fail to file reports on the status of
3. Corps./partns. if any of its officers/members of the board/partners is also employment, placement vacancies, remittance of foreign exchange
affiliated to a corp./partn. engaged in the business of travel agency earnings, separation from jobs, departures and such other matters or
4. Persons, partns. /corps. w/c have derogatory records, i.e., but not limited information as may be required by the Secretary of Labor.
to: 9. Contract substitution: To substitute or alter employment contracts
a. derogatory record /information by the NBI/Anti-Illegal Recruitment approved and verified by the Department of Labor from the time of
Branch of the POEA actual
b. Prima facie/probable cause finding of guilt for illegal
Recruitment /other related cases Involvement in travel agency: To become an officer or member of the Board of
c. Convicted for illegal recruitment/other related cases/ crimes any corporation engaged in travel agency or to be engaged directly or indirectly in
involving moral turpitude the management of a travel agency; and k. To withhold or deny travel documents
5. Official/Ee of DOLE, POEA, OWWA, DFA, and other govt. agencies directly from applicant workers before departure for monetary or financial considerations
involved in the implementation of R.A. No. 8042 amended, 10022 or any other than those authorized under this Code and its implementing rules and
of their relatives w/in 4th Civil degree regulations.
6. Persons/partners, officers, and directors of corps. whose license have
been previously canceled/revoked for violation of Recruitment laws f. Illegal Recruitment
acts of CETCHUP and CRAP undertaken by a non-licensee/non-holder of
c. Non-transferability of License or Authority (Labor Code, Art. 29) authority; it is illegal and punishable (R.A. 8042, amended R.A. 10022)
No license or authority shall be used directly or indirectly by any person other
than the one in whose favor it was issued or at any place other than that stated in i. Elements and Types (Labor Code, Art. 38; R.A No. 8042, as amended by R.A.
the license or authority be transferred, conveyed, or assigned to any other person No. 10022, Sec. 6)
Elements of Illegal Recruitment
or entity. Any transfer of business address, appointment or designation of any
1. Offender undertakes any of the activities w/in the meaning of
agent or representative including the establishment of additional offices
"Recruitment and placement" under Article 13(b) (CETCHUP and CRAP)
anywhere shall be subject to the prior approval of the Department of Labor.
of LC or any of the prohibited Practices enumerated under Article 34 or
LC
d. Suspension or cancellation of license or authority (Labor Code, Art. 35;
Revised POEA Rules 2016 for Land-based Workers, Part III, Rule I, Secs. 101 and 2. Offender has no valid license/authority required by law
104)
Types of Illegal Recruitment
1. Simple - committed when a licensee/non-license/holder/non-holder
authority undertakes any Recruitment activities defined under Article

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Labor Law and Social Legislation
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13(b) or any of the prohibited Practices enumerated under Section 6 of 5. Permanent resident foreign nationals and probationary/temporary
R.A. 8042, amended R.A. 10022. resident visa holders
Prescription of action: 5 years 6. Refugees and stateless persons recognized by the DOJ
2. Illegal Recruitment as economic sabotage - complex illegal recruitment 7. All foreign nationals recognized by the law
a. Syndicated - carried out by a group of 3 or more persons
b. Large scale/qualified - committed against 3 or more persons Persons Excluded from Coverage
individually/as a group The ff are excluded from securing an AEP:
Prescription of action: 20 years 1. Members of the governing board w/ voting rights only
2. President and treasurer who are part-owner of the company
"Illegal Recruitment in large scales" pertains to number of victims; “Syndicated illegal 3. People who are providing consultancy services and does not have Ers in
Recruitment" pertains to the number of recruiters. the Phil.
4. Intra-corporate transferee who is a manager, executive/specialist
ii. Illegal recruitment vs. Estafa (R.A No. 8042, as amended by RA No. 10022, 5. Contractual service supplier who is a manager, executive/specialist and
Sec. 6; Revised Penal Code, Art. 315, par. 2 (a)) Ee of a foreign service supplier w/c has no commercial presence in the
1. Illegal Recruitment - Malum prohibitum; employment fraud; does not Phil.
require that the recruiter wrongfully represented himself as a licensed 6. Representative of the Foreign Principal/Er assigned in the Office of
recruiter Licensed Manning Agency (OLMA)
Victim relied on the misrepresentation and scheme that caused them to
entrust their money in exchange of vain hope of employment abroad. FNs that are excluded from securing AEP shall secure a Certificate of Exclusion from the
Regional Office.
2. Estafa - Malum in se; property fraud; accused defrauded another by
abuse of confidence/by means of deceit Validity of AEP
It is essential that the false statement/fraudulent representation GR: 1 year
constitutes to the very cause/the only motive w/c induces the XPN: employment contract or other modes of engagement provide otherwise
complainant to part w/ the thing of value. shall not exceed 3 years

Illegal Recruitment and Estafa can be filed simultaneously/separately. Renewal of AEP

Application of AEP should be filed not earlier than 60 days before the expiration.
g. Solidary Liability of Local Recruitment Agency and Foreign Employer (R.A. No. In case FN needs to leave the country/other similar circumstances that will hinder
8042, as amended by R.A. No. 10022, Sec. 10); Theory of Imputed Knowledge the filing w/in the prescribed period, application may be filed earlier.
GR: local Recruitment agency is jointly and solidary liable w/ it is principal and
foreign-based Er for violations of the recruitment agreement and violation of Grounds for Denial of Application from New/Renewal of AEP
contract of employment 1. Misrepresentation of facts in the application
XPNs: Workers themselves insisted for the recruitment agency to send them back 2. Submission of falsified documents
to their foreign Er despite their knowledge of Er's inability to pay wages, agency is 3. Conviction to a criminal offense/fugitive from justice in the
absolved of any liability. country/abroad
4. Grave misconduct in dealing/ill treatment of workers
If the recruitment/placement agency is a juridical being, the corporate 5. Availability of Filipino that are competent, able, and willing to do the job
officers/directors/partners themselves are jointly and solidarity liable w/ the 6. Worked w/o valid AEP w/ an expired visa/w/ a temporary visitor's visa
corp./patronship. for the claims and damages 7. Application for renewal w/ an expired visa/ temporary visitor's visa

Liability of Foreign Er - can be sued in the Philippine courts e.g., direct hiring by a
foreign firm w/o participation of POEA.

Theory of Imputed Knowledge - the knowledge of the agent is knowledge of the

principal

h. Termination of Contract of Migrant Workers (R.A. No. 8042, as amended by

R.A. No. 10022, Sec. 10)
Relief of a Worker When Terminated W/o Valid Cause
1. Full reimbursement of placement fee w/ 12% interest per annum
2. Salaries for the unexpired portion of his employment contract

NOTE: the 3-month option in declared unconstitutional for violating the equal
protection clause and the substantive due process rule in the Constitution. (Serrano v.
Gallant)

B. EMPLOYMENT OF NON-RESIDENT ALIENS (LABOR CODE, ARTS. 40-42; DOLE

D.O. NO. 186-17, SECS. 1-3 AND 12-14, AS AMENDED BY DOLE D.O. NO. 221-21;
DOLE D.O. NO. 205-19, SECS. 1-3, 7-8)
Employment permit may be issued to:
1. non-resident alien
2. applicant employer upon determination of non-availability

Persons Required to Obtain Alien Employment Permit (AEP)

GR: Foreign nationals who intends to engage I gainful employment in the
Philippine
XPNs:
1. Members of diplomatic service and foreign government officials with
reciprocity arrangement w/ he Phil.
2. Officers and staff and their legitimate spouses of international orgs.
where Phil. is a member
3. Owners and representatives of foreign principals of companies
accredited by the POEA who comes to the Phil. for the sole purpose of
interviewing potential Fil. ees
4. Foreign nationals that come to the Phil. to teach, present and/or conduct
research in univs. and colleges as visiting/exchange/adjunct profs. under
formal agreements provided that the exemption is on reciprocal basis

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To afford the Er an opportunity to observe the fitness of a probationary Ee at
work.

d. Project
Job/undertaking that may be w/in the regular/usual business of the Er and it
must be distinct, separate, and identifiable from the main business of the Er and
the duration must determined/determinable
Can be fixed for:
EMPLOYER-EMPLOYEE RELATIONSHIP 1. Specific undertaking
A. EMPLOYER-EMPLOYEE RELATIONSHIP 2. Time bound
Er - any person, natural/juridical, domestic/foreign, who carries on in the Phi. any
trade, business, industry, undertaking or activity and uses the services of another NOTE: If a project Ee's employment is extended long after the supposed termination of
person, who is under his orders w/ regards as to the employment, xpt the Govt. the project for a period of more than 1 year, Ee shall be considered as regular Ee.
Ee - any person acting the interest of an Er w/ either or both mental and physical
efforts are used and receives compensation and there is an Er-Ee relationship e. Seasonal
job, work, /service to be performed is seasonal in nature and the employment is
*Only a natural person can qualify as an employee. for the duration of the season. The termination of the Ee's employment after the
Note: A self-employed person is both the Er and Ee at the same time. season is legal and cannot constitute illegal dismissal.

Existence of an Employment Relationship NOTE: Seasonal Ee's are considered as regular Ee's and are considered on LOA w/o pay
during off-season.
It is determined by law and not by contract and it is determined w/ the Four-fold
Test.
f. Fixed-Term
**Important to learn to see the legal/illegality of an Ee's dismissal.
a contract employment for a definite period and terminates by its own at the end
of said period and the defined period must be a genuine condition of the job and
1. Tests to Determine Employer-Employee Relationship (DOLE D.O. No. 147-15,
not merely to avoid regular status of the Ee.
Rule I-A, Sec. 3)
Four-Fold Test
1. Selection and engagement of the Ee Decisive Determinant in Term Employment
2. Payment of wages the day certain agreed by the parties for the commencement and the termination
3. Power of Dismissal of the employment relation
4. Power of control/Control Test (the most important element)
3. Related Concepts
a. Floating Status (Labor Code, Art. 301; DOLE D.O. No. 215-20)
Control Test
also known as temporary lay-off, temporary off-detail, or temporary
1. there is Er-Ee relationship when the person for whom the services are
retrenchment
performed reserves the rights to control not only the end achieved but
also the manner and means used to achieve the end
An employment is not deemed terminated when:
2. refers to the existence of power and not necessarily to the actual
1. There is a bona fide suspension of the operation of a
exercise of it.
business/undertaking for a period not exceeding 6 months
2. Fulfillment of the Ee of a military/civic duty
Kinds of Control Exercised by an Er
Not every form of control has the effect of establishing an Er-Ee relationship,
*If the floating status of an Ee exceeds more than 6 months, he may be considered to
therefore, a line should be drawn between:
have been illegally dismissed from the service and is entitled to corresponding benefits
a. Rules as guidelines that aims to promote the result, no Er-Ee relationship for his separation.
exist **If Er has not recalled Ee for work w/in 1 month after the 6-month period, the Ee shall
b. Rules that fix the methodology and bind/restrict the party hired to the be considered as terminated and Er will have to pay separation pay.
use of such means and methods and both addresses the result and the ***If Er does not pay separation pay, then it will amount to constructive dismissal.
means, Er-Ee relationship exist
b. Employment Subject to a Suspensive Condition
**Certain cases that the control test is not sufficient to know the relationship between a condition w/c suspends rights and obligations (or the validity of the entire
the parties, the two-tiered test is to be adopted. contract) until a certain future event occurs. If the event happens/not, the
contract shall be brought to life or the suspensive rights and obligations will not
Elements come into existence as if the agreement did not happen respectively.
1. Er's power to control (four-fold test)
2. Economic realities of the activity/relationship (Economic Reality Test)
B. LEGITIMATE CONTRACTING VS. LABOR-ONLY CONTRACTING (LABOR CODE,
2. Kinds of Employment (Labor Code, Arts. 295-296) ARTS. 106-109; DOLE D.O. NO. 174-17; DOLE D.C. NO. 01-17; E.O. NO. 51, SERIES
a. Regular OF 2018)
hired for activities w/c are necessary/desirable in the usual business of the Er and Elements
by the nature of the business of the Er LEGITIMATE CONTRACTING LABOR-ONLY CONTRACTING
Contractor carries a distinct and independent Contractor does not have
Types of Regular Employment business and does its job, work, /service on substantial capital/investment
1. As to nature of work - Ee is engaged to perform activities w/c are their own account, responsibility, manner, and to perform what is agreed under
necessary/desirable in the usual business/trade of the Er method its own account and
responsibility
2. As to length of service - any Ee that has rendered at least 1 year of
Free from the control and direction of the
service, w/er continuous/broken principal in all matters connected to the
performance of the work except to the The Ee's recruited, supplied,
*Regularization is not a management prerogative rather a mandate of law. results/Right of control test placed by the contractor are
performing activities directly
b. Casual Contractor has substantial capital/ related to the main business of
Ee is engaged in an activity w/c is not usually necessary/desirable in the usual investment the principal and does not
exercise control over the
business/trade of Er, provided, that the employment is neither Project/seasonal
Service agreement ensures compliance with performance of the Ees
 is casual when it is irregular, unpredictable, sporadic, and brief in nature, all the rights and benefits of the Ee's of the
and outside the usual business of the Er contractor under the L. Ls

c. Probationary Legitimate Contracting - agreement between C and P assures the C Ee's

the period when the Er may determine if the Ee is qualified for regularization, entitlement to all labor and occupational safety and the rights and benefits
usually in a 6-month period provided under the L. Ls

Purpose of the Probation Period

7
Labor Law and Social Legislation
REDENTOR AGBAYANI
Substantial Capital - paid-up capital stock/shares of least 5 million for juridical
persons and 5 million net worth for sole proprietorship. The burden of proof in
proving substantial capital/investment is on the contractor.
NOTE: In legitimate job contracting, the P is jointly and severally liable w/ the
contractor for the payment of unpaid wages.
Independent Contractor - undertakes "job-contracting" and exercises
independent employment and possess unique skills, expertise, or talent that
distinguishes them from other Ees
Indirect/Statutory Er - one who enters a contract w/ an independent contractor
that is not related to the Er's business
NOTE: No Er-Ee relationship between the owner of the project and Ees of the
independent contractor.
Labor-only Contracting (LOC) - arrangement between C, who does not have
substantial capital/investment (tools, equipment, machineries, work premises)
and supplies workers to an Er and workers recruited perform activities that are
directly related to the P business of the Er. It is a prohibited act as there are not
really any contracting/contractor and the C is only a representative to gather and
supply people to the P.
Trilateral Relationship - present in legitimate contracting in w/c there is a
contract for a specific job/work/service between the P and C, and a contract of
employment between the C and its workers. There are 3 parties involved:
1. Principal (P) - the Er w/c gives the job to the C
2. Contractor (C) - an entity engaged in a legitimate contract agreement
providing job/work/service to a P
3. Contractual Workers - employed by the C to perform/complete a
job/work/service pursuant to the contract arrangement between C and P
**P and C is governed by the Civil Code.
***C and CW are governed by the Labor Code and Special Labor Laws through Er-Ee
relationship.
LABOR STANDARDS
A. CONDITIONS OF EMPLOYMENT
1. Covered Employees; Exceptions (Labor Code, Art. 82; Omnibus Rules
Implementing the Labor Code, Book III, Rule I, Secs. 1-2)
GR: Covers all Ees in all establishments, w/er for profit or not and deals w/ the
hours of work, weekly rest periods, holidays, service charges, and service
incentive leaves
XPNs:
1. Government Ees - governed by the Civil Service Law and are the ones
with and under original charters and are governed by such legislated
charters
*Govt.-owned/controlled corps w/o original charters and created under the Corporation
Code are governed by the LC.
2. Field Personnel - non-agricultural Ees who: regularly performs their duty
away from the principal place of business of the Er; actual amount of
their work hours in the field is undeterminable w/ reasonable certainty;
and are exempted due to the nature of their functions/work and are free
from the supervision of their Er
3. Managerial Ees - vested w/ the power/prerogatives to lay down/execute
management policies and to
hire/transfer/suspend/lay-off/recall/discharge/assign/discipline
Ees/recommend managerial actions and are employed for their special
training/expertise/experience/knowledge/positions that requires
independent judgement and discretion.
4. Officers and members of the managerial staff - primary duty is the
performance of work directly related to managerial policies of Er;
customarily and regular exercise discretion and independent judgement;
regularly and directly assist a proprietor/managerial Ee; do not devoted
more than 20% of their work hours in a work well to activities not closely
related to the performance of what is described in the preceding
statements
5. Members of the family of the Er who are dependent on him for support
- exempted because the support given by the Er may exceed the benefit
for which the Ee is entitled under Labor provisions
6. Workers paid by results - there are 2 categories: 1) time and
performance are supervised by the Er where there is an element of
control and supervision over the manner on how the work is performed
i.e., piece-rate worker; 2) time and performance are unsupervised where
the Er's control is over the result of the work i.e., "pakyao" and "takay";
payment is determinable by the results of the work performed/number
of units produced
7. Persons in personal service of another - perform necessary/desirable
services to Er's home for maintenance/enjoyment i.e., cleaning/home
service spa; minister to the personal comfort/convenience/safety of the
Er and his members
*NOTE: they are not included because their employment is covered under the the Batas
Kasambahay Law.
XPN: if helper works w/in a company/premises of the business of the Er and not
actually serve the family of the Er is to be considered a regular Ee is entitled to
the usual benefits of one.
8. Domestic helpers - same w/ #7
9. Retail and service estabs. regularly employing less than 10 Ees the Ees
above are not entitled to overtime pay, premium pay for rest days and
holidays, night shift differential pays, holiday pay, service incentive leave
and service charges.
2. Hours of work
a. Normal hours of work (Labor Code, Arts. 83-84; Omnibus Rules Implementing
the Labor Code, Book III, Rule I, Secs. 3-4)
GR: not exceed 8 hours a day
XPNs:
1. Health Personnel
2. Compressed Workweek - work week is reduced to less than 6 days but
the work hours per week is still 48 hours and normal weekday work
hours is increased to more than 8 hours w/o corresponding OT premium
8
Labor Law and Social Legislation
REDENTOR AGBAYANI
1. Compressed Workweek
Rationale of 8-hour Labor 2. Reduction of Workdays -normal WDs are reduced not lasting more than
1. Safeguard health and welfare of laborer 6 months
2. Minimize unemployment by utilizing dff. shifts 3. Rotation of Workers - Ees are rotated/alternately provided work w/in
3. Give Ees enough time to lead a richer/ more fruitful/meaningful lives and WW
to be able to participate intelligently in public concerns 4. Forced Leave - Ees are required to go on leave to utilize their leave
credits
b. Meal periods (Labor Code, Art. 85; Omnibus Rules Implementing the Labor 5. Broken-time Sched. - work Sched. is not continuous but WHs w/in the
Code, Book III, Rule I, Sec. 7) day/week remain
Duration 6. Flexi-holidays Sched. - Ees avail holidays
GR: Not less than 60 minutes/1 hour for regular meals taken inside/outside
company premises Alternative Work Arrangements (D.A. 17-B-20) - order to assist Ers to resume
can be also utilized for rest and comfort and Ees are not compensated for this business ops. while preserving the employment of their Ees under quarantines
period chu-chu

Compensable Meal Period Alternative Work Arrangements mentioned in D.A. 17-B-20

1. Period is predominantly spent on Er's benefit 1. Transfer - other branch/outlet of the same Er
2. Less than 60 minutes 2. Assignment - assigned to another function/position of the same Er
3. Job rotation - alternately required to work w/in the WW
c. Night-shift (Labor Code, Article 86; Omnibus Rules Implementing the Labor 4. Reduction of WDs - normal WDs/week are reduced
Code, Book III, Rule II, Secs. 1-6) 5. Partial closure - some units/depts. are closed
Every Ee shall be paid a NSD of not less than 10% of his regular wage for each 6. Other - adjustment of wage and wage-related benefits of Ees
hour of work performed between 10PM and 6AM
GR: All employees are entitled to NSD
XPNs: TELECOMMUTING PROGRAM
1. Government and its political subdivisions including GOCCs 1. work arrangement that allows Ees to work remotely from home/another
2. Retail and service establishments regularly employing not more than 5 location outside of the traditional office
workers 2. Er in the private sector may offer a telecommuting program to it Ees on a
3. Domestic helpers and persons in personal service of another voluntary basis/result of collective bargaining and upon such terms and
4. Managerial Ees conditions as they may mutually agree upon
5. Filed personnel and those works that are unsupervised by the Er
*NOTE: terms and conditions will not be less than the minimum Labor standards set by
Purpose the law and will include compensable hours, minimum number of work hours, OT, rest
Work done at night has a greater burden to the worker and is more strenuous and days, entitlement to leave benefits, social welfare benefits, and security of tenure
onerous, therefore it deserves a greater/extra compensation.
Telecommuting Agreement
d. Overtime work (Labor Code, Arts. 87-90; Omnibus Rules Implementing the Including but not limited to:
Labor Code, Book III, Rule I, Secs. 8-10) 1. Eligibility
It is the service rendered in excess and in addition to 8 hours of ordinary working 2. Applicable code of conduct and performance evaluation and assessment
days. 3. Appropriate alternative workplace
4. Use and cost of equipment
OT Pay - additional compensation of at least 25% on the regular wage performed 5. Work days/hours
in excess of 8 hours a day by Ees covered by the 8-hour Labor law and is 6. Conditions of employment, compensation, and benefits particularly
computed by multiplying the OT hourly rate by the number of hours in excess. those unique to telecommuting Ees
*Written Authority after office hours during rest days and holidays are required 7. Non-diminution of benefits
for entitlement to comp. 8. Occupational safety and health
9. Observance of data privacy policy
Waiver of OT Pay 10. Dispute settlement
GR: cannot be waived. Any stipulation to the contrary in the employment contract 11. Termination/change of work arrangement
is null and void.
XPNs: Termination of Telecommuting Arrangement
1. Waiver is in consideration of benefits and privileges w/c may be more in accordance w/ the telecommuting policy/arrangement, w/o prejudice to
than the OT pay employment relationship and working conditions of the Ee, at no cost to the Ee
2. Compressed Workweek arrangement
f. Non-compensable hours
e. Compressed work week, flexible work arrangement, alternative work Meal Time and breaks duhhhh
arrangements, telecommuting program (DOLE D.A. No. 02-04; DOLE D.A. No. 02-
09; DOLE D.A. No. 04-10; R.A. No. 11165, Secs. 3-5) 3. Rest periods (Labor Code, Arts. 91-93; Omnibus Rules Implementing the
Compressed work week - normal workweek is reduced to less than 6 days w/ 48 Labor Code, Book III, Rule III, Secs. 1-9)
work-hours per week and normal workday is increased to more than 8 hours but Every Er shall give his Ees rest period of not less than 24 consecutive hours after
does not exceed 12 hours every 6 consecutives normal WDs
RD is not necessarily Sunday/holidays provided that Ees are given the weekly RD
Requisites and the benefits provided under the law.
1. Scheme is expressly and voluntarily supported by Ees
2. Certification for firms using substances/operating in hazardous Scope of the WRD
conditions All Ees for profit/not, including public utilities operated by private persons
3. DOLE RO is notified
Persons who determine WRD
Valid Compressed Work Week GR: Er
1. Temporary XPNs:
2. Humane solution than retrenchment of Ees 1. Collective Bargaining Agreement
3. Notice and consultations w/ workers and supervisors 2. Rules and Regulations of SOLE
4. Consensus is reached 3. Ee based on religious grounds - shall make know in writing at least 7 days
5. Sufficiently proven that the company was suffering from losses before the desired activity
XPNs to XPN no.3: Er may sched. WRD of his choice for at least 2 days/month if
Flexible Work Arrangements - alternative scheds/arrangements of the standard the preference of Ee results in:
workweeks a. Serious harm to the operations of the undertaking
b. Er cannot normally be expected to resort to other remedial measures
Types of FWAs

9
Labor Law and Social Legislation
REDENTOR AGBAYANI
*Er is mandated to respect the choice of his Ees as to their rest day based on a. Ee's regular workday
religion. i. Unworked - 100%
ii. Worked
Right of the Ee to Know the Sched. of their WRDs o First 8 hours - 200%
by means of: o Excess of 8 hours - plus 30% of hourly rate on said day
1. Written notice b. Ee's rest day
2. Posted obviously in the workplace i. Unworked - 100%
3. At least 1 week before its effectiveness ii. Worked
o First 8 Hours - plus 30% of 200%
Emergency Rest Day Work o Excess of 8 hours - plus 30% oh hourly rate on said day
GR: Ee cannot be compelled by the Er to work on his RD
XPNs: 2. Special Holiday such as Special Non-working Day, Special Public Holiday,
1. In case of actual/impending emergencies Special National Holiday in addition to the 3 nationwide special non–
2. In cases of urgent work to be performed on the equipment’s to avoid working days:
serious loss to the Er a. Ee's regular workday:
3. In the event of abnormal pressure of work due to special circumstances, i. Unworked - no pay unless there is a favorable company policy,
where the Er cannot expectedly resort to other measures practice or CBA granting payment of wages on special days even
4. Prevent loss/damage to perishable go (must not be ordinary loss) if unworked
5. Nature of the work requires continuous operations and stoppage may ii. Worked
result to injury/loss to the Er o First 8 hours - plus 30% of daily wag Rae of 100%
6. Other circumstances analogous/similar as determined by the SOLE o Excess of 8 hours - plus 30% of hourly rate on said day
b. Ee's rest day and worked:
4. Holidays (Labor Code, Art. 94; Omnibus Rules Implementing the Labor Code, i. First 8 hours - plus 50% of the daily rate of 100%
Book III, Rule IV, Secs 1-11) ii. Excess of 8 hours - plus 30% of hourly rate on said day
Holiday Pay - one-day pay given by law to Ee even if he does not work on a
regular holiday; limited to the 12 regular holidays (legal holidays) listed by law;
3. Special working holidays, the following rules shall apply:
the Ee should not be absent w/o pay on the working day before the regular
a. work performed, an Ee is entitled only to his basic rate
holiday to be entitled
b. no premium pay is required since work performed on said days is
Purpose of Holiday Pay
considered work on ordinary working days
1. to secure the payment of undiminished monthly income undistributed by
any work interruption
Important condition that should be met in order to avail/receive the Single
2. primarily aimed at benefiting the daily-paid workers whose income is
Holiday Pay
circumscribed by the principle of "no-work, no pay"
Ee should not be absent w/o pay on the working pay immediately preceding RH

Person Entitled to HP
Private School Teachers (Faculty Members of Colleges and Universities)
GR: All Ees
1. RH during semestral vacations - not entitled to holiday pay
XPNs:
2. RH during Christmas vacation - entitled to holiday pay
1. Govt. Ees and its political subdivisions including GOCCs **Christmas breaks do not represent a break in the academic calendar and fall w/in the
2. Retail and service estabs. regularly employing less than 10 Ees semester
3. Domestic helpers and persons in the personal service of another
4. Ee engaged on task/contract/commission basis Hourly-Paid Teachers
5. Members of the family of Er who is dependent on him for support 1. No pay on regular holidays including Christmas and semestral vacations
6. Managerial Ees and other members of the managerial staff 2. W/ pay on special public holidays and other no-class days when classes
7. Field personnel and other Ees who are unsupervised by their Er are called off/shortened on account of floods, typhoons, rallies and the
8. Ees paid w/ fixed amount like, w/er extension days be ordered/not
*In case of extensions, faculty teachers will likewise be paid their hourly rates should
Legal Holiday - designated by the legislature to commemorate an important they teach during said extensions
event **If event extensions are called for, they are also entitled to their pay for the extended
days.
Regular Holidays
GR: compensable w/Er worked/unworked subject to certain conditions; also Workers having No Regular Work Days
called "legal holidays" They will be entitled to holiday pay.
XPN: legal holidays falling on a Sunday
HOLIDAYS Rule when Two Regular Holiday fall on the same day (Double Holiday Pay)
REGULAR HOLIDAY SPECIAL (NON-WORKING) HOLIDAYS GR: Ee's should be paid 400% of the basic wage for both holidays
New Year's Day Jan 1 Ninoy Aquino Day Aug 21
XPN: Ee worked on that day/was on leave of absence w/ pay/was authorized
Araw ng Mon nearest Apr 9 All Saints Day Nov 1
Kagitingan absence on the day prior to the regular holiday
Maundy Movable date Feast of Immaculate Conception Dec 8
Thursday of Mary (R.A. 10966) WEDNESDAY MAUNDY THURSDAY & RATE
Good Friday Movable date Last day of the year Dec 31 ARAW NG KAGITINGAN
Labor Day May 1 Ninoy Aquino Day Aug21 Present Unworked 200%
Independence June 12 Holidays declared by law and ordinance LOA w/ pay Unworked 200%
Day LOA w/ pay Worked 300% (at least)
National Heroes Last Mon of Aug Authorized absence Worked 300% (at least)
Day Authorized absence Worked and day is Rest Day 3905 (+30% OF EACH
Eid'l Fitr Movable date 3 100%
Eid'l Adha Movable date
Bonifacio Day Nov30
WEDNESDAY MAUNDY GOOD ENTITLED TO HOLIDAY PAY
Christmas Day Dec 25
Rizal Day Dec 30 THURS FRIDAY
Worked RH RH Yes, both
LOA w/ pay RH RH Yes, both
REGULAR HOLIDAY SPECIAL (NON-WORKING) HOLIDAYS LOA w/o pay RH RH No, both
If unworked LOA w/o pay Worked RH Yes, only to holiday to pay on Friday
Compensable, subject to certain condition Not compensable
If worked
Conditions for an Ee to be Entitled to 2 Successive Holiday Pays
Rate is 200% of the regular rate Additional 30% premium pay of 100% RW
Limited to the 12 holidays provided in the Not exclusive; law, / ordinance may provide On the day immediately preceding the first RH, he must be:
code for other special holidays 1. Present (worked)
2. On LOA w/ pay
Formula to Compute Wage on Holidays (M.C. No. 01, Series of 2004)
1. Regular Holiday

10
Labor Law and Social Legislation
REDENTOR AGBAYANI
If the above stated are not met - Ee must on the first RH to be entitled to holiday
pay on the second RH *"Fair and reasonable value" - not include any profit to the Er/to any person affiliated
w/ the Er
5. Service charges (Labor Code, Article 96; Omnibus Rules Implementing the
Labor Code, Book III, Rule VI, Secs. 1-7; R.A. No. 11360; DOLE D.O. No. 206-19; Twin Attributes of Wages
DOLE L.A. No. 14-19) 1. Cash wage - ready money paid by the Er for services rendered by the Ee
Service Charges - charges collected hotels, restaurants and other similar estbs. 2. Facilities - articles/services customarily given for the benefit of the Ee
distributed completely and equally am one covered worker except managerial and are voluntarily accepted by him
Ees.
*NOTE: "Wages" covers all benefits of the Ee under the CBA such as severance pay,
Covered Ees educational allowance, accrued vacation leave earned but not enjoyed, workmen's
GR: all Ees covered compensation award and unpaid salaries for services rendered
XPN: Managerial Ees
Agricultural work - farming activities such as cultivation and tillage of soil,
Distribution production, cultivation, growing and harvesting of any agricultural/horticultural
completely and equally among covered workers commodities, dairying, raising of livestock/poultry, culturing of fish, etc. but does
not include manufacturing/processing of sugar, coconut, abaca, tobacco,
Frequency of Distribution pineapple, aquatic or other farm products
Not less than once every 2 weeks/twice a month at intervals not exceeding 16
days

WAGE VS. SALARY

Tips
"Wages" are compensation to manual labor, skilled/unskilled, paid at stated
1. Voluntary payment made by the customer
times, and measured by the day, week, month, or season; pay for a lower and less
2. Handled similarly w/ service charges
responsible character of employment
"Salary" denotes a higher degree of employment/superior grade of services and
6. Occupational Safety and Health Standards Law (R.A. No. 11058, Secs. 4-6, 8
implies a position of office; suggestive of a larger and more important service
and 12)
SECTION 4. DUTIES OF EMPLOYERS, WORKERS, AND OTHER PERSONS
1. Every employer, contractor, or subcontractor, if any, and any person who
"No Work, No Pay" Principle (Fair Day's Wage for a Fair Day's Labor)
manages, controls, or supervises the work being undertaken shall:
GR: no work performed w/o the fault of the Er, no wage/pay, burden of economic
a. Furnish the workers a place of employment free from hazardous
loss suffered by Ee will not be shifted to the Er
conditions that are causing or are likely to cause death, illness, or
XPNs: when the laborer was able, willing and ready to work but was:
physical harm to the workers;
1. prevented by the mgmt.
b. Give complete job safety instructions or orientation to all the workers
2. illegally kicked out
especially to those entering the job for the first time, including those
3. illegally suspended
relating to familiarization with their work environment;
4. illegally dismissed
c. Inform the workers of the hazards associated with their work, health
5. illegally prevented from working
risks involved or to which they are exposed to, preventive measures
to eliminate or minimize the risks, and steps to be taken in cases of
Equal Pay for Equal Work Principle
emergency;
Ee's holding the same position and rank are presumed to be performing equal
d. Use only approved devices and equipment for the workplace;
work
e. Comply with OSH standards including training, medical examination
Application of Title
and, where necessary, provision of protective and safety devices such
GR: All Ees
as personal protective equipment (PPE) and machine guards;
XPNs:
f. Allow workers and their safety and health representatives to
1. Farm tenancy/leasehold
participate actively in the process of organizing, planning,
2. Household/domestic helpers (persons working in the personal service of
implementing, and evaluating the safety and health program to
another)
improve safety and health in the workplace; and
3. Home workers in needlework/any cottage industry duly registered w/ the
g. Provide, where necessary, for measures to deal with emergencies and
law
accidents including first-aid arrangements.
4. Workers in registered cooperatives recommended by the Bureau of
2. Every worker shall participate in ensuring compliance with OSH
Cooperative Development, upon approval of the SOLE
standards in the workplace. The worker shall make proper use of all
safeguards and safety devices furnished for the worker’s protection and
*NOTE: workers of a registered barangay micro business enterprise are only exempted
that of others, and shall observe instructions to prevent accidents or
from the Minimum Wage Law
imminent danger situations in the workplace. The worker shall observe
the prescribed steps to be taken in cases of emergency. Forms of Payment
The worker shall report to the supervisor any work hazard that may be GR: legal tender
discovered in the workplace.
3. It shall be the duty of any person, including the builder or contractor who Unacceptable Forms of Payment:
visits, builds, renovates or installs devices or conducts business in any 1. promissory notes
establishment or workplace, to comply with the provisions of this Act 2. vouchers
and all other regulations issued by the Secretary of Labor and 3. coupons
Employment. 4. tokens
4. Whenever two (2) or more undertakings are engaged in activities 5. tickets
simultaneously in one (1) workplace, it shall be the duty of all engaged to 6. chits
collaborate in the application of OSH standards and regulations. 7. another object that is not legal tender
*Prohibition still applies even if expressedly requested by the Ee

B. WAGES XPNs:
1. Components and Exclusions 1. check/money order will be allowed if:
a. Wages (Labor Code, Art. 97(f))
2. customary on the date of effectivity of the code
renumeration/earnings, capable of being expressed in terms of money, were
3. necessary because of special circumstances specified by the SOLE
fixed/ascertained on a time, task, piece, or commission basis, or other method of
4. stipulated in the CBA (Collective Bargaining Agreement)
calculating the same, payable by an Er to Ee under a written/unwritten contract of
5. ff. conditions are met:
employment:
a. bank/other facilities are w/in 1km radius from workplace
1. work done/to be don/services rendered/to be rendered
b. Er/agents/representatives do not receive financial benefits
2. includes fair and reasonable value of board, lodging, other facilities
directly/indirectly
furnished by the Er as determined by SOLE

11
Labor Law and Social Legislation
REDENTOR AGBAYANI
c. Ees are given reasonable time during banking hours to withdraw d. Bonus
their wages w/c will be considered as compensable hours if done amount granted and paid to an Ee for his industry and loyalty w/c contributes to
during working hours the success of the Er's business and made the realization of profits possible
d. payment by checks is w/ written consent of the Ees if there is no
collective agreement authorizing the payment of wages by bank Q: Can bonus be demanded?
checks : Generally, NO. As it is a management prerogative given in addition to what is
given ordinarily.
Time of Payment XPNs: given for a long period of time, provided that:
GR: 1. Consistent and deliberate w/o any condition imposed on the payment
1. at least once every 2 weeks 2. Er knew he was not required to give benefit
2. twice a month at intervals not exceeding 16 days 3. Nature of the benefit is not dependent on profit
XPNs: 4. Stated on the employment contract and made part of the
1. force majeure/circumstances beyond Er's control, to be made wage/compensation agreed
immediately after circumstances have ceased 5. Promised to be given w/o any conditions for its payment
2. performance of task can't be completed 2 weeks w/ the ff. conditions, in 6. It has ripened into practice
the absence of CBA/Arbitration award Elimination/Reduction of benefits may constitute constructive
3. payments at intervals not exceeding 16 days, in proportion to the dismissal/demotion.
amount of work completed
4. final settlement upon completion of work e. 13th Month Pay (P.D. No. 851; Revised Guidelines on the Implementation of
the 13th Month Pay Law)
Place of Payment form of monetary benefit equivalent to the monthly basic compensation received
GR: at/near place of undertaking by an Ee, computed in proportion acc. to the number of months w/in a year that
XPN: other locs. permissible under ff. circumstances: the Ee has rendered service to the Er
1. reason of deterioration of peace and other conditions/reason of
actual/impending emergencies making the payment impossible Formulation and Computation of 13th Month Pay
2. Er provides transportation to and from total basic salary earning duringthe year
3. under analogous circumstances, provided that the time spent by Ee =13 th month pa
collecting the wages are considered as compensable hours worked 12
NOTE: payment of wages to drinking establishments, massage clinic, or in places where Basic Salary
games are played w/ stakes of money/things representing money except persons GR: All remunerations/earnings paid by the Er to an Ee for services rendered
employed in mentioned places including cost-of-living allowances, but does not include all allowances and
monetary benefits not considered/integrated as part of the regular/basic salary
Direct Payment of Wages 1. cash equivalent of unused vacation and sick leave credits
GR: directly to workers 2. OT pays
XPNs: 3. Premium pay
1. Payment through another person in cases of force majeure w/ written 4. Night Shift Differential
authority of the worker 5. Holiday pay
2. To a member of his family where Er is authorized in writing 6. Commissions
3. Authorized by existing law such as insurance XPN: if the above mentioned are part of an integral part of the basic salary
*Salary-related benefits should be included in the computation of th13th month pay
b. Facilities (individual/collective agreement, company practice/policy) and should be treated the
As to Nature: items of expense same as basic salary of the Ees.
As to their Inclusion to Wage: Forms part of wage
As to their Deductibility: Deductible from the wage TIME OF PAYMENT OF THE 13TH MONTH PAY
To whose Benefit: For the benefit of the worker and his family Under PD 851, it must be payed not later than December 24 of every year
 includes articles/services for the benefit of the Ee/his family but will not *Absence of a CBA provision obligating the Er from paying Ees 13th month pay is
include to all of the trade/articles/service and form part of their wage for immaterial as it is a statutory grant.
the benefit of the Er/necessary on the conduct business of the Er e.g., **'minimum service requirement', Ee should have worked at least 1 month during a
rice ration, housing, recreational facilities, medical treatments, school calendar year
facilities, cost of light, water, fuel, meals/snacks
Person covered by the PD 851
Facilities Exclude Profit 1. Employees
value of the faculties should not be more than the actual cost to the Er; "Fair and GR: All rank-and-file Ee's if their Ers are not otherwise exempted from
Reasonable Value" does not include any profit to the Er/person affiliated w/ Er paying the 13th month pay provided that the Ee have worked at least 1
month during a calendar year
Requirements for Deducting Values for Facilities XPNs:
1. Proof that facilities are customarily furnished by the trade Govt. Ees
2. Provision of deductible facilities must be voluntary accepted in writing by Ee's paid purely on commission basis
the Ee Ee's already receiving 13th month pay
3. Facilities must be charged at fair and reasonable value Managers
Seafarers
c. Supplements NOTE: Managerial Ees may receive 13th month pay if granted under an employment
As to Nature: Extra renumeration/benefits contract/company policy/practice
As to their Inclusion to Wage: Independent of wage (due to this, the value of
2. Employers
supplements is not deductible from the cash wage of the Ee)
GR: All Ers
As to their Deductibility: Not wage deductible
XPNs:
To whose Benefit: For the convenience of Er
a. Govt. and it's political subdivisions and GOCCs
 extra renumerations/benefits given to laborers over and above their
XPN to this XPNs: Corps. operating as private subsidiaries of the Govt.
ordinary wages e.g., vacation leave pay, OT pay, profit-sharing benefits,
b. Ers already paying their Ees 13th month pay/more in a calendar year
family allowances, Christmas bonus, war-risk/cost-of-living bonuses,
in its equivalent at the time of issuance of the revised Guidelines
other bonuses paid as reward for extra output/time spent on the jobs
c. Ers paid on purely basis of:
- Commissions (bus drivers/conductors paid on a fixed/guaranteed
Tips Not Part of Wages: Element of Compulsion in Tipping
minimum wage, if the commission is less than the statutory
1. paid directly to the Ee by a customer
minimum are entitled to 13th-month pay)
2. denotes a voluntary act and lacks the essential element of gift w/c is the
- Boundary
free bestowing of a gratuity w/o consideration
- Task
- Fixed amount

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Labor Law and Social Legislation
REDENTOR AGBAYANI
XPN: workers paid on a piece-rate basis 2. Contingent benefit/conditional bonus
Piece-rate workers - workers paid a standard amount for every piece of 3. Wage order compliance
unit of work produced 4. Benefits/reimbursement basis
d. Distressed Ers: 5. Reclassification of position
- Currently incurring substantial losses 6. Negotiated benefits (can only be eliminated/diminished bilaterally)
- For non-profit orgs. where incomes are from donations, 7. Productive incentives (if not corrected in time, it can become into a
contributions, grants and other earnings, and has consistently company policy that Ee can demand as a matter of right)
declined by more than 40% of their normal income for the last 2
years subject to Sec. 7 of PD 851 Applicability of the Rule on Non-Diminution of Benefits
**Under the Kasambahay Law, Ers of household helpers and person in personal service 1. Grant of benefit is based on a policy/ripened into practice over a long
of another are entitle to 13th month pay. period of time
2. Practice is consistent and deliberate
Other types of Employment entitled to 13th Month Pay 3. Practice is not due to an error
1. Part-time Ees 4. Done unilaterally by the Er
2. Extras
3. Casual Ees 3. Payment of Wages (Labor Code, Arts. 102-105; Omnibus Rules Implementing
4. Seasonal Ees the Labor Code, Book III, Rule VIII, Secs. 1-7, 10-14)
Forms of Payment
Equivalent forms of the 13th month pay GR: legal tender
1. Christmas bonus
2. Midyear bonus Unacceptable Forms of Payment:
3. Profit Sharing Scheme 1. promissory notes
4. Other cash bonuses amounting to not less than 1/12 of the basic salary 2. vouchers
*Must always be in LEGAL TENDER 3. coupons
4. tokens
Not Proper Substitutes for 13th Month Pay 5. tickets
1. Free rice 6. chits
2. Electricity 7. another object that is not legal tender
3. Cash and stock dividends *Prohibition still applies even if expressedly requested by the Ee
4. Cost-of-living allowance
***Non-payment of 13th month pay will be treated as money Claims cases XPNs:
1. check/money order will be allowed if:
f. Holiday Pay (Labor Code, Art. 94; Omnibus Rules Implementing the Labor 2. customary on the date of effectivity of the code
Code, Book III, Rule IV, Secs. 1-7) 3. necessary because of special circumstances specified by the SOLE
4. stipulated in the CBA (Collective Bargaining Agreement)
5. ff. conditions are met:
2. Principles a. bank/other facilities are w/in 1km radius from workplace
a. No Work, No Pay b. Er/agents/representatives do not receive financial benefits
"No Work, No Pay" Principle (Fair Day's Wage for a Fair Day's Labor) directly/indirectly
GR: no work performed w/o the fault of the Er, no wage/pay, burden of economic c. Ees are given reasonable time during banking hours to withdraw
loss suffered by Ee will not be shifted to the Er their wages w/c will be considered as compensable hours if done
XPNs: when the laborer was able, willing and ready to work but was: during working hours
1. prevented by the mgmt. d. payment by checks is w/ written consent of the Ees if there is no
2. illegally kicked out collective agreement authorizing the payment of wages by bank
3. illegally suspended checks
4. illegally dismissed
5. illegally prevented from working Time of Payment
GR:
1. at least once every 2 weeks
b. Equal Pay for Equal Work 2. twice a month at intervals not exceeding 16 days
Equal Pay for Equal Work Principle
XPNs:
Ee's holding the same position and rank are presumed to be performing equal
1. force majeure/circumstances beyond Er's control, to be made
work
immediately after circumstances have ceased
2. performance of task can't be completed 2 weeks w/ the ff. conditions, in
Application of Title
the absence of CBA/Arbitration award
GR: All Ees
a. payments at intervals not exceeding 16 days, in proportion to the
XPNs:
amount of work completed
1. Farm tenancy/leasehold
b. final settlement upon completion of work
2. Household/domestic helpers (persons working in the personal service of
another)
Place of Payment
3. Home workers in needlework/any cottage industry duly registered w/ the
GR: at/near place of undertaking
law
XPN: other locs. permissible under ff. circumstances:
4. Workers in registered cooperatives recommended by the Bureau of
1. reason of deterioration of peace and other conditions/reason of
Cooperative Development, upon approval of the DOLE
actual/impending emergencies making the payment impossible
2. Er provides transportation to and from
*NOTE: workers of a registered barangay micro business enterprise are only exempted
3. under analogous circumstances, provided that the time spent by Ee
from the Minimum Wage Law
collecting the wages are considered as compensable hours worked
c. Fair Wage for Fair Work
If there is no work performed by the Ee there can be no wage/pay, unless, the NOTE: payment of wages to drinking establishments, massage clinic, or in places where
games are played w/ stakes of money/things representing money except persons
laborer was able, willingly and ready to work but was illegally locked out,
employed in mentioned places
dismissed or suspended
Direct Payment of Wages
d. Non-Diminution of Benefits (Labor Code, Art. 100) GR: directly to workers
GR: Benefits given to Ee's cannot be taken back/reduced unilaterally by the Er as XPNs:
it has been a part of the employment contract, w/Er written/unwritten. 1. Payment through another person in cases of force majeure w/ written
Prohibition against elimination/diminution of benefits. authority of the worker
XPNs: 2. To a member of his family where Er is authorized in writing
1. Correction of error 3. Authorized by existing law such as insurance

13
Labor Law and Social Legislation
REDENTOR AGBAYANI
4. death of Ee, to the heir’s w/o the necessity of a will. When heirs are of 2. Disparity of wages due to diff. regions
age they shall: 3. Disparity on the date of hiring
a. Execute an affidavit of relationship and the fact that they are their 4. Ee was hired at a position level w/ a high hiring rate than others
heirs 5. Ee failed to meet the cut-off date in the yearly CBA increase
b. if heir is a minor, the affidavit will be executed on their behalf by his 6. Ee was promoted
natural guardian/next of kin
c. Er will make the payment upon the presentation of affidavit
6. Minimum Wage (Labor Code, Art. 99; Omnibus Rules Implementing the Labor
4. Prohibitions Regarding Wages (Labor Code, Arts. 112-119; DOLE L.A. No. 11- Code, Book III, Rule VII, Secs. 7, 9 and 15)
14) Regional Minimum Wage
NON-INTERFERENCE IN DISPOSAL OF WAGES lowest basic wage rates that an Er pay to hos works as fixed by the Regional
Er shall not limit/interfere w/ the freedom of any Ee to dispose of his wages and Tripartite Wages and Productivity Boards (RTWBPs) w/c shall not be lower than
shall not force, compel/oblige his Ees to purchase merch’s, commodities/other the applicable statutory minimum wage rates
property
Statutory Minimum Wage
Civil Code Provs. on Non-interference in Disposal of Wages lowest wage rate fixed by the law; compensation lower than SMW is considered
Art. 1705. Laborer's wages should be paid in legal tender. underlayment that is violative of the law
Art. 1706. Withholding of the wages, xpt. for debt, will not be made by the Er.
Art. 1707. Laborer's wages should be lien on the goods manufactured/work done.
Art. 1708. Laborer's wages should not be subject to execution/attachment, xpt for C. LEAVES
debts incurred for food, shelter, closing and medical attendance 1. Service Incentive Leaves (Labor Code, Art. 95; Omnibus Rules Implementing
Art. 1709. Er should neither seize nor retain any tool/other articles belonging to the Labor Code, Book III, Rule V, Secs. 1-6)
the laborer. has rendered at least 1 year of service w/Er continuous/broken.

Wage Deduction Purpose of the Law

GR: Er is not allowed 1. stipulation under the law for the allowance of vacation to Ees is merely a
XPNs: recognition by the mgmt. and labor for the short but complete rest and
1. Worker is insured by the Er w/ consent relaxation w/ the benefit of full pay is essential to the mental and
2. For union dues and check-off is authorized in writing and recognized by physical well-being of the workmen.
the Er 2. service for not less than 12 mos., w/er broken/continuous from the date
3. Cases where Er is authorized by law/regulations by the SOLE: the Ee started working including authorized absences and paid regular
a. Deductions for value of meals and facilities agreed holidays unless working days in the establishment as a matter of
b. Ee is indebted to Er and it is due and demandable practice/policy, or provided in the contract that the employment is less
c. In court awards, wages are executed/attached for debts incurred than 12 months, in w/c case, the period shall be considered as 1 year.
for food, shelter, clothing, and medical attendance
d. Taxes withheld Right to SIL
e. Salary deduction of a member of a legally established cooperative GR: Ee who has rendered at least 1 year of service is entitled to a yearly SIL of 5
f. Deductions for SSS, PhilHealth and Pag-IBIG Premiums days w/ pay. Leave pay means an Ee gets paid despite absences from work.
g. Deductions for loss/damage XPNs:
h. Deductions w/ written authorization of Ee for payment to third 1. Govt. Ees/Ees employed in G) CCs w/ original charters/created under
persons special laws
i. Deductions as disciplinary measures for habitual tardiness 2. Domestic helpers and person in personal service of another
***The law prohibits Er from deductions of the wages to prevented the commission of 3. Managerial Ees, if they meet all the ff. conditions:
unwarranted practices of Ers by making unnecessary deductions w/o Ee's a. primary duty is to manage the establishment in w/c they are
knowledge/authorization. employed/or of a dept. of subdivision
b. customarily and regularly direct the work of 2 /more Ees
PROHIBITION AGAINST DEPOSIT REQUIREMENT c. have the authority to hire/fire other Ees of lower rank or have the
GR: Er is not allowed to unilaterally impose it's Ee's the giving of cash/deposits ability to suggest/recommend as to the hiring, firing, and
XPN: Er proved and established that it falls under the following: promotion, or any other change of status of other Ees
1. engaged in a trade, occupations, business where practice of 4. Field personnel/Ees whose time and performance are unsupervised by
deductions/requiring deposits is a recognized one the Er including:
2. cash bonds/deposits are determined as necessary/desirable by the DOLE a. task/contract basis
Secretary in appropriate rules and regulations b. purely commission basis
c. Ees who are paid a fixed amount for doing work irrespective of the
Prohibition on withholding of wages time consumed
GR: unlawful, directly/indirectly to withhold any amount from the wages of a 5. Those who are already enjoying this benefit
worker 6. Those enjoying vacation leave w/ pay of at least 5 days
XPN: withholding the salary and benefits of terminated/resigning Ee's prior 7. Those employed in establishments regularly employing less than 10 Ees
to/pending compliance w/ clearance procedure **Ees engaged on task/contract basis/paid on purely commission basis are not
automatically exempted from the grant of SIL, unless they fall under the classification of
5. Wage Distortion (Labor Code, Art. 124) field personnel
The disappearance/virtual disappearance of pay differentials between lower and
higher positions in an enterprise because of compliance w/ wage order. Part-time Workers are Entitled to the Full Benefit of the Yearly 5-day SIL
a part time worker is entitled to SIL w/Er the 12 mos is continuous/broken/where
Elements of Wage Distortion the working days in the employment contract as a matter of practice/policy is less
1. Existing hierarchy of positions w/ corresponding salary rates than 12 mos. The availment and commutation can be proportionate to the daily
2. Significant ang/increase in the salary rate of a lower pay class w/o a work rendered and the regularly daily salary.
corresponding increase in the higher pay class Piece-rate workers and above minimum wage Ees are entitled to the full benefit
3. Elimination of the distinction between the 2 groups/classes of the yearly 5-day SIL.
4. WD exists in the same region of the country
Burden of proof (establishments regularly employing less than 10 workers)
Causes it is the Er's duty to prove
1. Govt. decreed increases in minimum wages
2. Merger of 2 companies (w/ diff. classifications of Ees and salary rates) Entitlement of Terminated Ees to SIL
3. Effectivity date wage increases to each class is not synchronized 1. Illegally dismissed Ees — entitled to SIL until reinstatement
2. Legally dismissed Ees — entitled only to such pay after a year from
Cases NOT Representative of Wage Distortion commencement of service until termination of employment/contract
1. Hierarchy of position is based on skills, length of service and other logical
bases Commutability of SIL to monetary equivalent

14
Labor Law and Social Legislation
REDENTOR AGBAYANI
GR: commutable is not used/exhausted at the end of the year; aimed primarily to
encourage workers to work continuously and w/ dedication to the company; the
basis shall be the salary rate at the date of the commutation and may be on a pro-
rata basis
XPN: SIL of domestic workers (RA No. 10361)
The 3-year prescriptive period commences from the time when the Er refuses to
pay its monetary equivalent after demand/upon termination of the Ee's service
2. Leaves under Special Laws
a. Expanded Maternity Leave (R.A. No. 11210)
1. signed into law on Feb. 20, 2019 and took effect on March 11, 2019
2. applies to all qualified female workers regardless of civil status,
employment status, and the legitimacy of her child
3. applies to all qualified female workers in:
a. public sector
b. private sector
c. informal economy (self-employed, occasionally/personally hired, sub-
contracted, paid/unpaid family workers)
d. voluntary contributors to SSS
e. national athletes
Benefits under the EMLL
1. paid leave benefit to qualified female worker in the public sector:
a. 105 days w/ full pay for live childbirth and an additional 15 days if
the female worker qualifies as a solo parent under RA No. 8972
b. 60 days w/ full pay for miscarriage and emergency termination
pregnancy
2. paid leave benefit to qualified female worker in the private sector
covered by the SSS, including in the informal economy:
a. provided under 1(a) and (b)
b. employed female workers shall receive full pay consist of:
- SSS maternity benefit computed based on their average monthly
salary credit
- Salary differential to be paid by the Er, if any
3. "option" to extend 30 days w/o pay in case in live childbirth provided
that (not applicable to stillbirth/miscarriage):
Er is given due notice
a. it must be in writing
b. must be given at least 45 days before the end of the female
worker's maternity leave
c. no prior notice in the event of a medical emergency, a subsequent
notice to the Er shall suffice
4. paid maternity leave, allowance, and benefits granted to female national
athletes
5. health care services for pre-natal, delivery, postpartum, and pregnancy-
related conditions granted to female workers, particularly those who are
neither voluntary nor regular members of the SSS
Miscarriage — pregnancy loss before the 20th week
Emergency termination of pregnancy — pregnancy loss on/after the 20th week
of gestation, including stillbirth
**Maternity leave can be credited as combinations of prenatal and postnatal leave as
long as it does not exceed 105 days and provided that compulsory postnatal leave shall
not be less than 60 days.
- EMLL shall be granted to a qualified female worker in every instance of pregnancy
miscarriage, or ETP regardless of frequency.
- maternity leave is granted even if the childbirth, miscarriage, or emergency
termination of pregnancy occurs not more than 15 calendar days after the termination
of an Ee's service but this is not applicable when the employment of the pregnant
woman worker has been terminated w/o just cause.
MATERNITY LEAVE IN THE PUBLIC SECTOR
any pregnant female in the govt. services regardless of employment status and
length of service
Conditions:
1. Give prior notice to the head of the agency of her pregnancy and her
availment of maternity leave at least 30 days in advance, whenever
possible, specifying the effective date of the leave
2. shall use the prescribed Civil service form in the filing of the maternity
leave application, supported by a medical certificate
3. maternity leave pay can either be in a lump sum or regular payment of
salary through agency payroll. Clearance from money, property and
work-related accountabilities shall be secured by the female Ee.
4. in case of livebirth, female worker in the republic sector has the option
to use her earned sick leave or if exhausted, her vacation leave credits for
extended leave w/ pay.
MATERNITY LEAVE IN THE PRIVATE SECTOR
Conditions:
1. at least 3 monthly contributions in the twelve-month period immediately
preceding the semester of childbirth, miscarriage, or ETP
2. notification of her Er of her pregnancy and the probable date of her
childbirth, w/c notice shall be transmitted to the SSS in accordance w/
the rules and regulations it may provide
**failure to notify the employer will not Bar the female worker from receiving the
maternity benefits subject to the guidelines to be prescribed by the SSS
 full payment of the benefit shall be advanced by the Er w/in 30 days from
the filing of the maternity leave application. The SSS shall immediately
reimburse the Er the maternity benefits advanced only to the extent of
100% of her daily salary credited for 105 days, 120 days or 60 days
MATERNITY LEAVE IN INFORMAL ECONOMY
Conditions:
1. must have remitted to the SSS at least 3 monthly contributions in the 12-
month period immediately preceding the semester of her childbirth,
miscarriage, or ETP
2. SSS shall directly pay the maternity benefit
b. Paternity Leave (R.A. No. 8187, as amended by R.A. No. 11210)
1. benefits granted to a married male Ee allowing him to not report to work
for 7 days but continue to earn compensation in the condition that his
spouse has delivered a child/suffered a miscarriage to let him support his
wife in her recovery and/or in the nursing of the newly born child
2. it is not convertible to cash if not availed
3. married male Ees in the public and private sector are entitled to a
paternity leave of 7 days w/ full pay for the first 4 deliveries of the
legitimate spouse w/ whom he is cohabitating. If spouses are not
physically living together, because of workstation/occupation, male Ee is
still entitled
Conditions for entitlement to paternity leave
1. married male Ee at the time of the delivery of the child
2. cohabitating w/ his spouse at the time she gives birth/suffers a
miscarriage
3. applied for a paternity leave w/in a reasonable period from the expected
date of delivery or w/in such period as may provide by company
rules/Collective bargaining agreement
4. wife has given birth/suffered a miscarriage
**in case of miscarriage, prior application for leave shall not be required
Crediting of existing benefits
1. existing paternity leave benefit under the CBA, contract, or company
policy is greater than 7 days provided under RA No. 8187 (Paternity
Leave Act of 1996), the greater benefit shall prevail
2. existing paternity leave benefit is less than what is provided under RA
No. 8187, Er shall adjust the existing benefit to cover the difference
3. paternity leave may be availed after the delivery w/o prejudice to an Er's
policy as long as it does not exceed a total of 7 days for each covered
delivery
c. Solo Parent Leave (R.A. No. 8972, as amended by R.A. No. 11861)
1. granted to solo parent to enable them to perform parent duties and
responsibilities where physical presence is required
2. not more than 7 working days every year are to be granted to solo parent
Ee who has rendered at least 1 year and is distinct to the other legally
mandated leaves i.e., SIL, the SSS sick leave, the SSS maternity leave and
the paternity leave
Conditions:
1. rendered at least 1 year of service (continuous/broken)
2. notified the Er of the availment w/in a reasonable period of time
3. presented a Solo Parent Identification card to their Er w/c may be
obtained from the DSWD office of the city/municipality of residence
Persons considered a solo parents entitled to parental leave
1. A woman who gives birth as a result of rape and other crimes against
chastity even w/o final conviction of the offender, provided, that the
mother keeps and raises the child
2. Parent left solo/alone w/ the responsibility of parenthood due to:
a. death of spouse
b. detention/service of sentence (w/Er or not it is final judgement) of
spouse for a criminal conviction for at least 1 year
15
Labor Law and Social Legislation
REDENTOR AGBAYANI
c. physical and/or mental incapacity of spouse certified by a public e. Battered Woman Leave (R.A. No. 9262)
medical practitioner VIOLENCE AGAINST WOMEN AND THEIR CHILDREN
d. legal separation/De facto separation of at least 1 year as long as they 1. act/series of acts committed by any person against a woman who is his
are entrusted w/ the custody of the children wife, former wife, or against a woman w/ whom the person has/had a
e. nullity/annulment of marriage as decreed by the court/church as long sexual/dating relationship, or w/ whom he has a common child
as they are entrusted w/ the custody of the children (legitimate/illegitimate, w/in or w/o the family abode) w/c result in
f. abandonment of at least 1 year physical, sexual, psychological harm/suffering, or economic abuse
3. Unmarried mother/father who has preferred to keep and rear his/her (battery, assault, coercion, harassment, arbitrary deprivation of liberty)
child/children instead of: 2. allows victims of valence to apply for the issuance of a protection order
a. having other care for them 3. victim Ee is entitled to a paid leave of up to 10 days in addition to other
b. Give them up to a welfare institution paid leaves under the LC, other laws and company policies
4. Any other person who solely provides: 4. Ee has to submit a certification from the punong barangay/Kagawad,
a. parental care prosecutor, clerk of Court that an action under RA 9262 has been filed/is
b. support to a child/children pending
***Provided, they are the duly licensed foster parent by the DSWD/duly appointed legal 5. for govt. Ees, certification and an application for leave citing RA 9262 as
guardian by the court basis
5. Any family member who assumes the responsibility of head of family **Ee can file an extended leave when the necessity arises as specified in the protection
as a result of the: order issued by the barangay/court
a. death
b. abandonment Penalties for violation of an Er
c. disappearance 1. Penalized in accordance w/ the provisions of the LC and Civil Service
d. prolonged absence of the parents/solo parent Rules and Regulations and liability for discrimination
***Provided, that abandonment, disappearance, or absence lasts for at least 1 year 2. availment of the 10-day leave is at the option of the woman Ee and
covers the days to attend to medical and legal concerns. It is
 if parental leave is not availed, it is not convertible to cash, unless, noncumulative and not convertible to cash.
specifically agreed upon previously
 if leave is DENIED to an Ee as a result of non-compliance w/ the provisions
of these rules by an Er, the leave may be used as a basis for the D. SPECIAL GROUPS OF EMPLOYEES
computation of damages 1. Women (Labor Code, Arts. 130, 132-136)
 change in status/circumstances of the parent claiming benefits and that LAWS PROTECTING WOMEN WORKERS
they are no longer left alone w/ the responsibility of parenthood, this will  role of women in nation building and ensure the fundamental equality
terminate their eligibility for these benefits before the law of women and men
 protect working women by providing safe and healthful working
Flexible Work Schedule conditions and opportunities that will enhance their welfare and enable
1. Er shall provide a flexible work schedule for solo parents, provided, that them to realize their full potential in the service of the nation
it will not affect the individual and company productivity, provided, 1. RA No. 6725 (An Act Strengthening the Prohibition on Discrimination
further, that NY Er may request exemption from the requirements above against Women w/ Respect to Terms and Conditions of Employment) -
from the DOLE on certain meritorious grounds explicitly prohibits discrimination against women against Ts and Cs of
2. in the case of Ees in govt. service, flexible working hours is subject to the employment, promotion, and training opportunities
discretion of the head of the agency. Weekly working hours will not be 2. RA No. 6955 (An Act to Declare Unlawful the Practice of Matching FNs
reduced if the agency adopts the flexible working hours (flexi-time) on Mail Order Basis) - bans the "mail-order-bride" practice w/c is the
3. existing/similar benefit under a company policy, CBA, or Collective export of female Labor to countries that cannot guarantee protection
negotiation agreement shall be credited the same. If the same is greater to the rights of women workers for a fee
than the 7 days provided, the greater benefit shall prevail 3. RA No. 7192 (Women in Development and Nation Building Act) -
affords women equal opportunities w/ men to act and enter into
d. Gynecological Leave (R.A. No. 9710) contracts, and for appointment, admission, training, graduation, and
woman Ee having rendered continuous aggregate employment service of at least commissioning in all military/similar schools
6 mos for the last 12 mos is entitled to a special leave benefit (SLB) of 2 mos/year 4. RA No. 7322 (An Act Increasing Maternity Benefits in Favor of Women
w/ full pay based on her gross monthly compensation ff. surgery caused by Workers in the Private Sector)
gynecological disorders 5. RA No. 7877 (Anti-Sexual Harassment Act)
6. RA No. 8042 (Migrant workers and Overseas Filipinos Act of 1995) -
Conditions: Prescribes a matter of policy on the deployment of migrant workers
Any female Ee in the public and private sector regardless of age and Civil status is w/ emphasis on women in countries where the rights are secured
entitled to SLB of 2 mos under such terms and conditions: 7. RA No. 9710 (Magna Carta of Women)
1. rendered at least 6 mos continuous aggregate employment service for 8. RA No. 9262 (Anti-Violence against Women and Children)
the last 12 mos prior to surgery
2. filed an application for special leave STATE POLICY ON NON-DISCRIMINATION AGAINST WOMEN
3. undergone surgery due to gynecological disorders as certified by a  The State shall accord women the rights, protection, and opportunities
competent physician available to every member of society.
 The State shall take steps to reviews, when necessary, amend/repeal
Gynecological Disorders existing Laws that are discriminatory to women w/in 3 from the
disorders that require surgical procedures i.e., but not limited to, dilation and effectivity of Magna Carta of Women Act.
curettage and those involving female reproductive organs i.e., vagina, cervix,
uterus, fallopian tubes, ovaries, breast, adnexa and pelvic floor, certified by a Discrimination
competent physician. Shall also include hysterectomy, ovariectomy, and 1. W/ respect to the terms and conditions of employment solely on
mastectomy. account of sex
a. Discrimination in pay - lesser in
Gross monthly compensation compensation/remuneration/benefits to a female Ee
1. monthly basic pay plus mandatory allowances fixed by the regional wage b. Discrimination in employment opportunity - favoring of male Ee to
boards promotion, assignment, transfer, training opportunities, study and
2. worker is not required to consume the entire period of special leave scholarship grants
3. Ee shall receive her salary and the Er, in its discretion, may allow Ee to c. Discrimination in hiring - favoring of a male applicant to a job that
receive her pay for the period covered by the approved leave can be equally handled by a woman
before/during the surgery. The computation of her pay shall be based on d. Discrimination in Dismissal - favoring a male Ee over a female Ee in
her prevailing salary at the time of the surgery dismissal/application of "last in, first out principle"/other
4. it is non-cumulative and non-convertible unless otherwise provided by a retrenchment policy of the Er
CBA 2. Stipulating, w/er as a condition for employment/continuation of
employment:
a. women Ee cannot get married

16
Labor Law and Social Legislation
REDENTOR AGBAYANI
b. upon marriage, female Ee will be considered as resigned/separated
c. dismissing, discriminating, prejudice of a woman Ees by reason of 2. Minors (R.A. No. 7610, as amended by R.A. No. 9231)
her marriage status CHILD LABOR VS. WORKING CHILD
Child Labor
Standard of Reasonable Test — Er has the burden of proof to prove the existence work/economic activity performed by a child that subjects him to any form of
of a reasonable business necessity that would justify an employment policy exploitation/harmful to their health and safety/physical, mental/psychological
devt
Expanded Breastfeeding Promotion Act (RA No. 10028) — under section 12.
Lactation Periods: Working Child
GR: nursing Ees are granted break intervals to breastfeed/express milk in addition Any child engaged in the ff:
to the regular time-off for meals and are to be considered compensable hours 1. below 18 y/o in a work/economic activity
XPN: intervals will not be less than a total of 40 minutes for every 8-hour working 2. below 15 y/o:
period a. directly under the responsibility of the parents/legal guardian and
only the Members of the family are employed
b. public entertainment/information
Stipulation Against Marriage
Unlawful for the Er to: Instances when the State can intervene in behalf of the child
1. Require as a condition/continuation of employment that a female Ee 1. failure to protect/unable to protect the child against abuse, exploitation
shall not get married and discrimination
2. Stipulate expressly that once a female Ee is married, they will be deemed 2. such acts are committed to the child by the parent, guardian,
resigned/separated teacher/person having care and custody over the child
3. Dismiss, discharge, discriminate/prejudice a female Ee by reason of
marriage Who can file a complaint for unlawful acts committed against children?
1. offended party
No-Spouse Employment Policy — policy Banning spouses from working in the 2. parents/guardian
same company 3. collateral relatives w/in the 3rd degree of consanguinity
GR: allowed 4. officer, social worker/representative of a licensed child-caring institution
XPN: not in the same department where there is direct supervision/control; in 5. officer/social worker of DSWD
case spouses are in the same dept., one of they may be reassigned to another 6. barangay chairman (place of the violation, residence of the
dept. child/employed)
7. at least 3 concerned, responsible citizen where the violation occurred
THE XPN OF BONA FIDE OCCUPATIONAL QUALIFICATION
occurs when Er proves that reasonable demands of the business require a Jurisdiction — the Family Courts
distinction based on marital status and no better/acceptable policy that would ALLOWED WORKING HOURS AND INDUSTRIES OF A WORKING CHILD
better accomplish the business purpose Rules on employment of minor workers
there must be a compelling business necessity where no alternative exists  employment of 18 y/o below that hazardous/deleterious in nature is not
other than the discriminating practice allowed
 discrimination of Er w/ respect to the terms and conditions of
Importance of the BFOQ employment on account of age is not allowed
1. ensure that Ee's performance in his work is effective
2. so that the no-spouse employment Rule will not impose danger to the 1. No employment of 15 y/o except:
business a. child works under the parents/legal guardian where members of
the family are employed, subject to the ff. conditions:
Prohibited Acts - does not endanger the child' safety/health/morals
Unlawful for Er to: - does not impair the child's normal devt.
1. deny woman Ee benefits provided by the law - child is provided w/ primary and/or secondary education
2. discharge for the purpose of preventing of enjoyment of such benefits prescribed by DepEd
3. discharge on account of pregnancy/while on leave/confinement due to b. child's employment in public entertainment/information through
pregnancy cinema/theatre/radio/television is essential provided:
4. discharge/refuse admission upon returning to work for fear of being - employment contract is concluded by the child's
pregnant against parents/legal guardian
- express agreement of the child if possible
DISCHARGING A WOMAN DUE TO PREGNANCY - approved by the DOLE and complied w/ the ff:
Prohibited acts on the pregnancy of a female Ee:  employment does not involve
1. discharge due to pregnancy advertisement/commercials promoting alcoholic
2. discharge while on leave due to pregnancy beverages, intoxicating drinks, tobacco and its by-
3. discharge while confined due to pregnancy products/exhibiting violence
4. discharge upon returning to work for fear that she may be pregnant  written contract approved by the DOLE
again  conditions in the first instance are met
5. refuse admission upon returning for fear that she may be pregnant again 2. Above 15 but Belo 18 — employment in any non-hazardous work
6. expulsion and non-readmission due to pregnancy outside of marriage 3. Above 18 — no prohibition

Series of absences due to pregnancy and its related ailments not a ground to Employment conditions
dismiss Ee — a violation of Article 137 of LC Strict conditioned that may be followed:
**deliberately concealing a pregnancy and incurring absences w/o official leave due to 1. total number of hours worked will be in accordance w/ Sec. 15 of Do No.
childbirth is not a ground for dismissal 65-04
2. does not endanger the child's life, safety, health and morals/impair their
Penalty for commission of the prohibited acts — provided under Article 287 LC normal devt.
Fine: P1,000 - P10,000 a. Normal development of a child — physical/emotional/mental/
Imprisonment: 3 months - 3 years or both spiritual growth of a child w/in a safe and nurturing environment
3. provided w/ the mandatory elementary/secondary education
Persons covered under the classification of certain women workers 4. Er secures a working permit for the child
Any women who are permitted/suffered to work:
1. w/ or w/o compensation Working child permit is required if a child below 15 y/o:
2. in night clubs, cocktail lounge, massage clinics, bar, other similar 1. will engage in public entertainment/ information regardless of role in a
establishments project
3. under the effective control/supervision of the Er for a substantial period 2. a FN and will engage in public entertainment int the PH
of time 3. engaged as a regular extra/part of a crowd and is included in the
4. considered as Ee of purposes of labor and social legislation script/storyboard

17
Labor Law and Social Legislation
REDENTOR AGBAYANI
4. selected for a project after auditions, workshops or VTR screenings Conditions:
5. selected as a semi-finalist in a singing/dance/talent contest for a TV show 1. not allowed to work for more than 8 hours/day, 40 hours/week
2. not allowed to work between 10PM to 6AM of the ff. day
Working child permit is Not required if a child below 15 y/o: 3. not allowed to do hazardous work
1. spot extra/casted outright on the day of the filming/taping 4. shall not be denied access to education and training
2. join auditions/VTR screenings
3. part of the audience of a live television show unless participation of the The consent of the parent/legal guardian of working children is required in the
child is expected employment contract.
4. pick/chosen as a contestant from the audience of a live television show  hiring can be directly/indirectly through private employment agencies
5. contestant of a live television show but is not yet a semi-finalist (PEA) registered w/ the DOLE Regional offices and Er shall shoulder the
6. recipient of gift-giving in television expenses w/er through private/third party
7. participant in school-related performance  contract between Er and Kasambahay should be written and should
8. participant in sports activities/trainings/workshops contain conditions set by the law and must be written in a
9. will be featured in a documentary material language/dialect understood by the Kasambahay (if Kasambahay is
below 18 y/o, the employment contract shall be signed by their
Regulation of Working Hours of a Child parents/lawful guardian)
1. time a child is required to be at the prescribed workplace  domestic helpers cannot acquire regularity of employment unless the
2. time during the child is suffered/permitted to work worker works w/in the premises of the business of the Er

Rest periods of short duration during working hours are counted as hours worked. Mandatory benefits of a Kasambahay
1. monthly minimum wage
 Below 15: not more than 20 hours a week provided, will not be more 2. daily rest period of 8 (total) hours
than 4 hours/day at any given day 3. weekly rest period of 24 (uninterrupted) hours
- not allowed to work between 8PM and 6AM of the ff. day 4. 5 days annual SIL w/ pay
 15 y/o but below 18 y/o: not more than 8 hours/day, 40 hours/week 5. 13th month pay
- not allowed to work between 10PM and 6AM of the ff. day 6. SSS benefit
7. PhilHealth benefit
Wage of the child will be used primarily to support themselves, secondarily to the 8. pag-IBIG benefit
collective needs of the family provided, not more than 20% of the child's income
may be used for the collective needs of the family Basic necessities of a Kasambahay
1. at least 3 adequate meals a day, considering the religious beliefs and
the parent/legal guardian of a child below 18 y/o shall set up a trust fund for at least cultural practices
30% of their earnings if the combined wages of the child amounts at least P200,000 2. human sleeping condition that respects their privacy for live-in
annually w/c they Wil render a semi-annual accounting of the fund to the DOLE. The arrangement; space for rest and access to sanitary facility for live-out
child will have full control of the trust fund once they reach 18.
arrangement
It I'd the duty of the Er to secure a work permit to ensure observance of the 3. appropriate rest and basic medical assistance
requirements.
Monthly minimum wage of a Kasambahay
Work permit for youth aged 15 to below 18 is not required by the law. MONTLY MINIMUM WAGE IN CITIES AND OTHER MUNICIPALITIES
1ST CLASS MUNIXIPALITIES
PROHIBITED ACTS NCR
5,000
Employment of child models is prohibited:
CAR
1. alcoholic beverages 4,000 3,000
2. intoxicating drinks 1
3. tobacco and by products 4,500 3,500
4. gambling 2
4,000
5. violence
3
6. pornography 4,500 4,000
4–A
Prohibition against worst forms of labor 3,500 3,000
4–B
1. all forms of slavery
3,5000
2. prostitution/pornography 5
3. exposing of a child to illegal/illicit activities 3,000 2,500
4. works that are hazardous and harmful to the health/safety/morals 6
5. modeling of any of the mentioned above 4,000
7
5,000 4,000
3. Kasambahay (RA No. 10361) 8
Persons covered: regardless if live-in/live-out arrangements 4,500 4,000
1. general house help 9
2. nursemaid/yaya 3,500 3,000
10
3. cook 4,000 3,000
4. gardener 11
5. laundry person 3,000 2,000
6. working children/domestic worker 15 y/o but below 18 12
4,000 3,5000
7. live-out domestic helper
CARAGA
3,500 3,000
Persons NOT covered:
1. service providers  payment shall be in cash and be paid at least once a month. Payment of
2. family drivers anything other than cash is PROHIBITED
3. children under foster arrangement —children living w/ a  Er shall pay the SSS premium and PhilHealth and Pag-IBIG contributions
family/household of a relative and are provided access to education and unless if the wage is 5,000 pesos/more
give allowance incidental to education provided, the foster family
complies w/ procedures and requirements under RA No. 10165 (Foster Unlawful acts under the Batas Kasambahay
Care Act of 2012) 1. Employment of children below 15 y/o
4. persons who perform domestic works occasionally/sporadically 2. withholding of the wages
3. interference in the disposal of wages
Employable age for a Kasambahay 4. requiring to make deposits for loss/damage
15 y/o and above 5. placing under debt bondage
6. charging another household for temporarily performed tasks

18
Labor Law and Social Legislation
REDENTOR AGBAYANI
 unlawful acts are punishable w/ a fine of 10,000-40,000 to be 2. for additional iods, in respect of w/c a medical certificate is produced
imposed by the DOLE Regional Offices stating that said additional periods are necessary for the health of the
 the aggrieved party may file the appropriate civil/criminal action mother/child:
before the regular courts a. during pregnancy
 the law mandates the immediate rescue of abused/exploited b. during specified time beyond the period, after childbirth is fixed
Kasambahay by the municipal/city social welfare officer/ social pursuant to number 1, the length of w/c shall be determined by the
welfare officer from DSWD, in coordination w/ the concerned DOLE after consulting the Labor organization and Ers
barangay officials
During the periods referred in Art. 158:
4. Homeworkers (Labor Code, Arts. 151-153) 1. a woman worker shall not be dismissed/given notice of dismissal, except
those who perform in his own home processing/fabrication of goods/materials, in for just/authorized causes provided for in the Code that are not
whole/part, furnished directly/indirectly, by an Er and sold to the latter connected w/ pregnancy, childbirth and childcare responsibilities
2. a woman worker shall not lose the benefits regarding her status,
Industrial Homework seniority, and access to promotion w/c may attach to her regular night
system of production where work for an Er/contractor is carried out by a work position
homework Er at their home
Protection of night workers
Er of a homeworker 1. Provision of certain facilities (sleeping/lactation quarters)
Anyone who: 2. conduct of medical examination
1. Delivers/causes to be delivered anything to be processed/fabricated in a 3. observance of legal process
home to be returned/disposed of/distributed in accordance w/ his
directions 6. Apprentices and Learners (Labor Code, Arts. 58-60, 73-74)
2. Sells anything to be processed/fabricated in a home and then rebuys
them after the processing/fabrication, by himself/himself/another
person
 it is the duty of the Er to provide in the contract that the 7. Persons with Disabilities (R.A. No. 7277, as amended by R.A. No. 9422 and
Ees/homeworkers are paid in accordance w/ the LC R.A. No. 10070)
 Er is jointly and severally liable w/ the contractor to the workers Magna Carta for Disabled Persons
 homeworkers have the right to create/join labor organizations ensures equal opportunities for disabled persons and prohibits discrimination
 payment is immediately upon the receipt of the finished goods and against them
articles less corresponding share of SSS, MEDICARE, and ECC
premiums Person’s w/ disability (PWD)
 Er may require to redo the work w/c have been improperly executed Earning capacity is impaired by:
w/o having to pay the stipulated rate again 1. physical deficiency
2. age
Prohibitions for homework 3. injury
1. explosives, fireworks, and similar articles 4. disease
2. drugs and poisons 5. mental deficiency
3. other articles w/c requires exposure to toxic substances 6. illness
 no disabled person shall be denied access to opportunities for
Conditions for deductions from HW's earnings suitable employment
GR: Not allowed  a qualified disabled Ee is subject to the same terms and conditions of
XPN: Unless the ff. conditions are met: employment and the same compensation, privileges, benefits, fringe
1. HW is clearly shown to be responsible for the loss/damage benefits, incentives or allowances as a qualified able-bodied person
2. HW is given reasonable opportunity to show cause why deductions  a qualified individual w/ disability is a person w/ disability who can
should not be made perform the essential functions of the employment position that such
3. amount of such deductions is fair and reasonable and shall not exceed individual holds/desires
the actual loss/damages
4. deduction is made at such rate that the amount deducted does not Employment of PWD
exceed 20% of the HW's earnings in a week 1. when their employment is necessary
2. when it will not create unfair competition
5. Night Workers (Labor Code, Arts. 154-161)  no minimum/maximum employment duration
NIGHT WORK  PWDs can be a regular Ee if work is necessary/desirable in the usual
 at least 7 consecutive hours of work between 10PM and 6AM business of the Er
 employed person who does night work  Ers in all industries can employ PWDs provided, that it will not impede
the performance of job operations
Persons covered by the provision on night work
GR: All persons employed/permitted or suffered to work at night Rights and Privileges of PWD
XPN: 1. Equal opportunity for employment. No PWD shall be denied access to
1. employed in agriculture, stock raising, fishing, maritime transport and opportunities for suitable employment.
inland navigation XPN: Bona fide Occupational Qualification
2. workers have the right to undergo health assessment w/o charge and 2. Sheltered employment. Providing of work if suitable employment for
advice on how to reduce health risk associated w/ their work: disabled person cannot be found through open employment.
a. before taking up an assignment as a night worker 3. Apprenticeship. PWD may be hired as apprentices/learners if their
b. at regular intervals during such an assignment disability does not impede the performance of job operations.
c. if they experience health problems during the assignment w/ are 4. Vocational Rehabilitation. Develop skills and potentials of PWDs for them
not caused by other factors other than the night work to compete in the labor market.
3. workers unfit for night work are to be transferred to a similar job w/c 5. Vocational guidance and counseling. To enable PWDs to secure, retain
they are fit to work and advance in employment w/c will be implemented by the DSWD.
4. night worker certified as temporarily unfit for night work of not less than  wage rate of PWDs is not less than 75% of the applicable adjusted
6 mos shall be given the same protection against dismissal/notice of minimum wage except, all qualified handicapped workers as
dismissal as other workers who are prevented from working for health prescribed by RA No. 7277
reasons  if a PWD is hired as an apprentice/learner, pay must not be less
than 75% of the minimum wage
Employability of women for night work  if PWD is hired as a learner and employed in piece/incentive-rate
1. before and after childbirth for a period of at least 16 weeks, w/c shall be jobs during the training period, pay must be 100% of the minimum
divided between the time before and after childbirth wage

Discrimination

19
Labor Law and Social Legislation
REDENTOR AGBAYANI
1. limiting, segregating, or classifying a PWD that adversely affects his work  act of sexual harassment may give rise to civil, criminal, and
opportunities unless, necessary for job-related for the position in administrative liability to the offender, each independent of the
question and is consistent w/ the business necessity others
2. Utilizing standards, criteria, or methods of administration that effect the  prescription of any acts violating the provisions of this act is 3 years
discrimination on the basis of disability and/or perpetuate the
discrimination of others who are subject to common administrative SAFE SPACES ACT RA NO. 11313
control Catcalling — unwanted remarks directed to a person
3. providing less compensation due to disability
4. favoring a non-disabled Ee over a qualified PWD Ee to promotions, Gender-based SH in the Workplace
training opportunities, study and scholarship grants unless, proven by 1. act/series of acts involving any unwelcome sexual advances,
the Er that he impairs the satisfactory performance of the work involved requests/demand for sexual favors that is detrimental effect on the
to the prejudice of the business entity; provided, Er first sought to conditions of an individual's employment/education, job
provide reasonable accommodations for PWD performance/opportunities
5. failure to select/administer in the most effective manner employment 2. conduct of sexual nature/other conduct-based on sex affecting the
test w/c accurately reflect the skills, aptitude/other factor of the dignity of a person w/c is unwelcome, unreasonable, and offensive to the
applicant/ PWD Ee recipient
6. exclusion of PWD Ees to labor unions/other orgs. 3. conduct that is unwelcome and pervasive and creates an intimidating,
hostile or humiliating environment for the recipient. Provided, that the
Incentives for Ers crime if gender-based SH may also be committed between peers and
1. deduction on gross income equivalent 25% of the total amount paid as committed by a superior officer by a subordinate, teacher to student, or
salaries and wages to PWDs, provided, that the Ers provided proof as to trainer to trainee
certified by the DOLE that PWDs are under their employ, provided  Ers/other persons of authority, influence or moral ascendancy have
further, PWD Ee is accredited w/ the DOLE and the DOH the duty to recent, deter, or punish the performance these acts in the
2. Additional deduction from the net taxable income of 50% of direct costs workplace by:
of the improvement/modifications of private entities for the reasonable a. disseminating/posting a copy of this act
accommodations for PWDs. 25% gross income deductions of amount b. provide measures to prevent gender-based SH i.e., conducting anti-
paid as salaries to PWDs in SPQ garments whose cutters and sewers are SH seminars
80% staffed by deaf/mute c. creating an independent mechanism/Committee on Decorum and
Investigation (CODI) to investigate and address complaint of
gender-based SH w/c will:
E. SEXUAL HARASSMENT IN THE WORK ENVIRONMENT (R.A. NO. 7877); SAFE - represent the mgmt., the Ees from supervisory rank, the rank-
SPACES ACT (R.A. NO. 11313, ARTICLE IV) and-file Ees, and the union
ANTI-SEXUAL HARASSMENT ACT RA NO. 7877 - designate a woman as its head and not less than half of its
Requisites members should be women
1. Act committed in a work, education, or training–related environment - members should be impartial and not connected to the alleged
2. Doer has authority, influence or moral ascendancy over another perpetrator
3. Doer demands/request/requires a sexual favor - investigate and decide w/in 10 days upon receipt
4. It does not matter if demand is accepted/not - observe due process
- law aims to punish the harasser w/o regard to gender - protect complainant from retaliation
- guaranty confidentiality
Kinds 4. provide and disseminate a code of conduct/workplace policy w/c shall:
1. Quid Pro Quo "This for that" — doer asks for something in exchange of a. expressly reiterate the prohibition on gender-based SH
something b. describe the procedures of the internal mechanism created under
2. Hostile environment sec. 17(c) of this act
c. set administrative penalties
PLACES WHERE SEXUAL HARASSMENT IS COMMITTED **non-compliance in the public sector by the Er of their duties, an Ee may file an
1. In a work related/employment environment administrative complaint w/ the CSC; for presidential appointees, Ee may file in the
Elements: Office of the President or the Office of the Ombudsman
a. sexual favor as a condition (Quid Pro Quo)
b. impairment of Ees' rights/privileges under existing labor laws Duties of Ees and Co-workers
c. resulting in an intimidating, hostile, or offensive environment for 1. refrain from committing acts of gender-based SH
the Ee 2. discourage the conduct of gender-based SH
2. In an education/training environment 3. provide emotional/social support to fellow Ees who are victims of
Elements: gender-based SH
a. sexual harassment is employed against who is under the care, 4. report acts of gender-based SH witnessed in the workplace
custody/supervision or whose education, training, apprenticeship  Ers may be liable for non-implementation of their duties provided in
or tutorship is entrusted to the offender this act and not taking action on reported acts of gender-based SH
b. sexual favor is made a condition (Quid Pro Quo)  victims can institute a separate and independent action for damages
c. sexual advances result in an intimidating, hostile or offensive and other affirmative relief
environment
 it is enough that the doer's acts result in creating an
intimidating, hostile or offensive environment F. DISCRIMINATORY PRACTICES
 it is the duty of the Er/ head of office to: (1.) prevent/deter the 1. Age (R.A. No. 10911)
commission of these acts and (2.) provide the procedure for the 2. Gender and Marital Status (R.A. No. 9710)
resolution, settlement or prosecution of these acts 3. Pregnant Women (R.A. No. 10354, Sec. 23(c))
4. Illness (DOLE D.A. No. 05-10; DOLE D.O. No. 73-05)
Duty of the Er/Head of Office toward these end 5. Solo Parents (R.A. No. 8972, as amended by R.A. No. 11861, Sec. 7)
1. promulgate rules and regulations in consultation w/ and jointly approved
by Ees/students/trainees, prescribing the procedure for the
investigation/Sexual Harassment cases and the administrative sanctions
2. create a committee on decorum and investigation of cases on Sexual
Harassment
3. Er/Head of Office shall disseminate/post a copy of this RA 7877 for the
information of all concerned
 Er is solidarity liable for damages from Sexual Harassment committed,
provided that, Er is informed of the acts of the offended party and no
immediate action is taken
 victims can institute a separate and independent action for damages
and other affirmative relief

20
Labor Law and Social Legislation
REDENTOR AGBAYANI

D. TRANSFER OF EMPLOYEES
Transfer- lateral movement from one position to another of equivalent rank,
level, or salary w/o break of service
1. for a transfer to be valid, the transfer should not be unreasonable,
inconvenient, or prejudicial to the Ee and should not involve a demotion
in rank, diminution in salaries, benefits and other privileges concerning
the transfer
2. Er has the burden of proof to show that the transfer is not unreasonable,
inconvenient, or prejudicial to the Ee nor does it involve a demotion in
rank/a diminution of salaries, privileges and other benefits
3. if Er fails to prove the reason ability of the transfer, Ee's transfer is
considered to be a constructive dismissal

E. DISCIPLINE OF EMPLOYEES
1. Er has the right to instill discipline and to impose reasonable penalties,
including dismissal, on erring Ees pursuant to company rules and
regulations. Company policies and regulations, unless shown to be
grossly oppressive/contrary to the law, is generally binding and valid on
the parties
Proportionality Rule — mgmt.’s prerogative to discipline must be exercised in
good faith

F. GRANT OF BONUSES AND OTHER BENEFITS

Bonus — amount granted and paid to an Ee for his industry and loyalty w/c
contributed to the success of the Er's business and made possible the realization
of profits
1. generally, bonus is not demandable, unless given for a long period of
time, provided that:
a. consistent and deliberate — Er continued giving benefit w/o any
conditions imposed for its payments
b. Er knew he was not required to give benefit
c. nature of benefit is not dependent on profit
d. made part of the wage/compensation agreed and stated in the
employment contract
e. it was promised to be given w/o any conditions imposed for its
payment in w/c case it is deemed part of the wage
f. it has ripened into practice
MANAGEMENT PREROGATIVE
2. elimination/diminution of benefits may constitute constructive
GR: right of the Er to regulate all aspects of employment i.e.:
dismissal/indicate demotion
1. freedom to prescribe work assignments
2. working methods
3. processes to be followed
G. CLEARANCE PROCESS
4. regulation regarding transfer of Ees
1. requiring clearance is a standard procedure to ensure that the properties
5. supervision of their work, lay-off and discipline
belonging to the Er that is in the possession of a separated Ee, are
6. dismissal and recall of work
returned to the Er before the Ee's departure
as long as the company's prerogative is exercised in good faith for the
GR: Ers are prohibited from withholding wages from Ees
advancement of the Er's interest
XPN: Ers may institute clearance procedures before the release of wages as
XPN: limited by law, contract, and principles of fair play and justice
authorized by the law/regulations issued by the SOLE

A. OCCUPATIONAL QUALIFICATIONS
H. POST-EMPLOYMENT RESTRICTIONS
BONA FIDE OCCUPATIONAL QUALIFICATION RULE (BFOQ)
TYPES OF RESTRICTIVE COVENANTS
1. job requires a particular question qualification and a worker that does
1. Non-compete clause — Ee is prevented from directly competing/working
not possess it may be disqualified w/o it being unlawful
for a competitor of his former Er/when Ee is prevented from setting up a
2. Er must prove 2 factors to justify BFOQ and that is: (1) employment
competing business
qualification is reasonably related to the essential operation of the job
2. Non-solicitation clause — duty is imposed on the Ee not to approach his
involved and (2) there is a factual basis, meeting the qualification would
former Er's customers/prospective customers/when the Ee is prevented
be unable to properly perform the duties of the job
from taking customers/clients of his former Er
3. BFOQ is related to the Reasonable Business Necessity Rule, w/c means
3. Non-poaching clause — Ee is prevented from enticing his former Er's
the business necessity of the Er to require certain attributes possessed
staff away from the business, the aim is to prevent the Ee from taking key
by a person in relation to the job it is to be done/performed
Ees w/ him to his new employment/business

Factors to consider to enforce a restrictive covenant

B. PRODUCTIVITY STANDARDS
1. w/er the covenant protects a legitimate business interest of the Er
1. failure to observe prescribed standards of work/to fulfill reasonable work
2. w/er the covenant creates an undue burden on the Ee
assignments due to inefficiency may constitute just cause for dismissal
3. w/er the covenant is injurious to the public welfare
2. this prerogative can be availed in good faith
4. w/er the time and territorial limitations contained in the covenant are
reasonable
5. w/er the restraint is reasonable from the standpoint of public policy
C. CHANGE OF WORKING HOURS
1. working hours may be changed at the discretion of the company, should
the change be necessary for its operations and the Ees should observe Non-Involvement Clause — not necessarily void for being in restraint of trade if
the rules laid down by the company there are reasonable limitations as to time, trade, and place
2. it is not absolute as it must be exercised in good faith and w/ due regards
to the rights of labor

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Labor Law and Social Legislation
REDENTOR AGBAYANI
I. LIMITATIONS ON MANAGEMENT PREROGATIVE, POLICE POWER OF THE STATE
1. exercise of mgmt. prerogative is limited such that the Er must be
motivated in good faith and it should not be resorted to circumvent the
law or must not have been the result/malicious/arbitrary actions
2. the exercise of the prerogative should not defeat an Ee's right to security
of tenure
Mgmt. prerogative is circumscribed by limitations found in:
1. law
2. CBA
3. employment contract
4. Er policy/practice
5. general principles of fair play and justice

mgmt. prerogative is inferior to the State's policy power and the exercise should
be:
1. w/o abuse of discretion
2. done in good faith and w/ due regard to the rights of labor

labor and mgmt. stand on equal footing when Bargaining in good faith w/ each other,
therefore mgmt. prerogative is never absolute

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