LABOR LAW AND SOCIAL LEGISLATION (10%)

NOTE: All Bar candidates should be guided that only laws, rules, issuances, and jurisprudence pertinent to
the topics in this syllabus as of June 30, 2022 are examinable materials within the coverage of the 2023
Bar Examinations.

I. Fundamental Principles and Concepts

A. Legal Basis
1. 1987 Constitution
Provides limitations in the enactment of Labor Laws.
1. Non-impairment Clause. Sec 10 Art III. No law impairing the obligation of
contracts shall be passed.

2. Equal Protection Clause. Sec 1 Art III. No person shall be deprived of life,
liberty, or property without due process of law, nor shall any person be denied
the equal protection of the laws.

3. Prohibition Against Involuntary Servitude. Sec 18(2) Art III. No involuntary

servitude in any form shall exist except as a punishment for a crime whereof
the party shall have been duly convicted.

4. Due Process Clause. Sec 1 Art III. No person shall be deprived of life, liberty,
or property without due process of law, nor shall any person be denied the
equal protection of the laws.

Constitutional provisions on the protection of labor are NOT SELF-EXECUTING,

and are mere guidelines that need enabling laws. They are not judicially
enforceable.

2. Civil Code
● Article 1700. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor contracts
must yield to the common good. Therefore, such contracts are subject to the
special laws on labor unions, collective bargaining, strikes and lockouts, closed
shop, wages, working conditions, hours of labor and similar subjects
● Article 1701. Neither capital nor labor shall act oppressively against the other, or
impair the interest or convenience of the public. (Principle of Non-oppression)
● Article 1702. In case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer
● Art.1703 NO contract which practically amounts to involuntary servitude, under
any guise whatsoever, shall be valid
● Art. 1704 — In collective bargaining, the labor union or members Of
the board or committee signing the contract shall be liable for non-
fulfillment thereof.
● Art. 1708 — The laborer's wages shall not be subject to execution or
attachment, except for debts incurred for food, shelter, clothing and
medical attendance.
● Art. 1709 — The employer shall neither seize nor retain any tool or
Other articles belonging to the laborer.
 ● Art. 1710 — Dismissal Of laborers shall be subject to the supervision
Of the Government. under special laws.
●
● Art. 19 — Every person must. in the exercise Of his rights and in the
performance Of his duties, act with justice, give everyone his due, and
observe honesty and good faith.

3. Labor Code
● PD 442 as amended
Basic Policy
a. Afford full protection to labor
b. Promote full employment
c. Ensure equal work opportunities regardless of sex, race or creed
d. Regulate the relations between workers and employers
e. Assure the rights of workers to self-organization, collective bargaining,
and just humane conditions of work.

Applicability
General Rule:: All rights and benefits granted to workers under the LC shall
apply alike to all workers, whether agricultural or non-agricultural.

Exceptions: GGF-ICL
I. Government employees
2. Employees Of GOCCs created by special or original charter
3. Foreign governments
4. International agencies

NOTE: International organizations and intergovernmental bodies are not

covered by the Philippines Labor Laws. The remedy Of the aggrieved employee
is to file a complaint before the Department Of Foreign Affairs (DFA). (Duka,
Labor Laws and Social Legislation, A Barrister's Companion, 2016, p. 18)

5. Corporate officers / intra- corporate disputes which fall under PD 902-A

and now fall under the jurisdiction Of the regular courts pursuant to the
Securities Regulation Code.
6. Local water district except where the NLRC'S jurisdiction is invoked.
7. As may otherwise be provided by the LC.

B. State Policy Towards Labor

SEC 3 ART XIII. The State shall
Afford full protection to labor, local and overseas, organized and unorganized and
promote full employment and equality of all employment opportunities for all.

Collective Rights of Workers.

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 It shall guarantee the rights of all workers to self-organization, collective
bargaining and peaceful concerted activities including the right to strike in
accordance with the law.

Individual Rights
They shall be entitled to security of tenure, humane conditions of work and a living
wage.

Rights to participate
They shall also participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.

The State shall promote

1. the principle of shared responsibility between workers and employers and
2. the preferential use of voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster
industrial peace.

The State shall regulate the relations between workers and employers, recognizing
1. the right of labor to its just share in the fruits of production and
2. the right of enterprises to reasonable returns to investments, and to
expansion and growth.

1. Security of Tenure
ART 294. Security of Tenure. — In cases of regular employment, the employer shall
not terminate the services of an employee except for a just cause or when authorized
by this Title. An employee who is unjustly dismissed from work shall be entitled to
a) reinstatement without loss of seniority rights and other privileges and
b) his full backwages, inclusive of allowances, and
c) his other benefits or their monetary equivalent computed from the time his
compensation was withheld from him up to the time of his actual
reinstatement

Security of tenure is a right of paramount value. PRecisely, it is given specific

recognition and guaranteed by the Constitution.

2. Social Justice
The promotion of the welfare of all the people, the adoption by the Government of
measures calculated to insure economic stability of all the component elements of
society, through the maintenance of a proper economic and social equilibrium in the
interrelation of the members of the community, constitutionally, through the
adoption of measures legally justifiable, or extra-constitutionally through the exercise
of powers underlying the existence of all Governments on the time honored principle
of Salus Populi est suprema lex.

Social justice is "neither communism, nor despotism, nor atomism, nor anarchy," but
the humanization Of laws and the equalization Of social and economic forces by the
 State so that justice in its rational and objectively secular conception may at least be
approximated.

Limitations

I. Social justice does not champion division Of property or equality Of

economic Status. (Guido v. Rural Progress Adm, L-2089, Oct 31, 1949)
It should not tolerate usurpation Of property, public or private.

2. May only protect the laborers Who come to court with clean hands
and their motives blameless.

3. Never results in an injustice or oppression Of the employer.

4. If it is used to shield wrongdoings, it cannot be permitted to be the

refuge Of scoundrels.

Q: May social justice as a guiding principle in labor law be so used by the

courts in sympathy With the working man if it collides With the Equal
Protection clause Of the Constitution? (2003 BAR)

A: YES. The State is bound under the Constitution to afford full protection to Labor
and when conflicting interests collide and they are to be weighed on the scales Of
social justice, the law should accord more sympathy and compassion to the less
privileged workingman. (Fuentes NLRC, GR. No. 110017, Jan. 2, 1997)

However, it should be borne in mind that social justice ceases to be an effective

instrument for the "equalization Of the social and economic forces" by the State
when it is used to shield wrongdoing

3. Equal Work Opportunities

a) The State shall promote full employment and equality of employment
opportunities for all.
b) A manifestation of this is the enactment of RA 10911 or the Anti-Age
Discrimination in Employment Act

4. Right to Self-Organization and Collective Bargaining

a) An employee can join a union on the first day of employment.
b) Collective bargaining is a contract between workers and employers on terms
and conditions of employment over and above those mandated by law.

5. Construction in Favor of Labor

ART 4. Construction in Favor of Labor. — All doubts in the implementation and
interpretation of the provisions of this Code, including its implementing rules and
regulations, shall be resolved in favor of labor.
a) In Peñaflor v. Outdoor Clothing 2010, this principle has been extended to
cover doubts in the evidence presented by the employer and the employee.
b) If doubt exists between the evidence presented by the employer and the
employee, the scales of justice must be tilted in favor of the latter. (Dreamland
Hotel Resort v. Johnson 2014)

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 c) The rule is that where the law speaks in clear and categorical language, there
is no room for interpretation; there is only room for application. Only when the
law is ambiguous or of doubtful meaning may the court interpret or construe
its true intent. (Leoncio v. MST Marine Services 2017

Relaxed and liberal interpretation of labor procedures — mainly for the benefit
of the employee, and not of the employer.

Q: Several employees Of NOVO Jeans filed a case Of illegal dismissal against NOVO
Jeans. However, NOVO jeans argued that they were able to present the First Notice Of
Termination Of Employment sent to employees, asking them to explain their sudden
absence from work Without proper authorization. In contrast, the employees alleged
that there were only sample letters Of the Notices, and there was no evidence to prove
that the Notices were sent to them at their last known addresses. They insist that if
doubt exists between the evidence presented by the employer and the evidence
presented by the employees, the doubt must be resolved in favor Of the employees,
consistent With the Labor Code's policy to afford protection to labor. Are the employees
correct?

A: YES. Under the law, where both parties in a labor case have not presented substantial
evidence to prove their allegations, evidence will be considered in equipoise. In such a case,
the scales Of justice are tilted in favor Of labor

6. Burden of Proof and Quantum of Evidence

Quantum of Evidence
In labor cases, as in other administrative and quasi-judicial proceedings, the quantum
Of proof necessary is substantial evidence, or such amount Of relevant evidence
which a reasonable mind might accept as adequate to justify a conclusion.

In illegal dismissal cases, the employer is burdened to prove just cause for
terminating the employment of its employee with clear and convincing evidence.

Burden of Proof
In determining the employee's entitlement to monetary claims, the burden of proof is
shifted from the employer or the employee, depending on the monetary claim
sought. (Minsola v. New City Builders Inc, GR No. 207613, Jan. 31, 2018)

In claims for payment of salary differential, service incentive leave, holiday pay and
13th month pay, the burden rests on the employer to prove payment.

On the other hand, for OT, premium pays for holidays and rest days, the burden is
shifted on the employee, as these monetary claims are not incurred in the normal
course of business. Employee must first prove that he actually rendered services in
excess of the regular working eight hours a day and that he in fact worked on
holidays and rest days.

In an illegal dismissal case, the employee has the burden Of proof to first show that he
was indeed dismissed from employment. "Before the employer must bear the burden
Of proving that the dismissal was legal, the employee must first establish by
 substantial evidence the fact Of his dismissal from service. (Reyes v. Global Beer Below
zero, Inc., G.R No. 222816 Oct 4, 2017)

Limitations
1. Recognition Of Management rights. The law also recognizes that
management has rights which are also entitled to respect and enforcement in
the interest Of fair play.
2. Principle Of Non-oppression. Neither capital nor labor shall act oppressively
against the Other, or impair the interest or convenience Of the public.

II. Pre-Employment
A. Recruitment and Placement of Local and Migrant Workers
1. Definition of Recruitment and Placement
It refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring,
or procuring workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or not.

Persons deemed Engaged in Recruitment

Any person or entity which, in any manner, offers or promises for a fee, employment to
2 or more persons shall be deemed engaged in recruitment and placement.

Labor Code includes promising or advertising for employment, locally or abroad,

whether for profit or not, provided, that any person or entity which, in any manner,
Offers or promises for a fee employment to two or more persons shall be deemed
engaged in recruitment and placement

2. Regulation of Recruitment and Placement Activities

Private employment sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and regulations as may be
issued by the SOLE.

Private Sectors than can participate

1. Shipping or manning agents or representatives
2. Private recruitment offices
3. Public employment offices
4. Construction contractors if authorized by the DOLE and CIA
5. Persons that may be authorized by the SOLE
6. Private employment agencies

Qualifications for participation

1. Citizenship
a. Filipino citizen
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 b. Partnerships or corporation filipino owned 75%
2. Capitalization
a. Local Employment - 1M (License valid for 3 years)
b. Overseas Employment - 5M (License valid for 4 years)

Q: Rocket Corporation is a domestic corporation registered With the SEC, With 30% Of
its authorized capital stock owned by foreigners and the remaining 70% owned by
Filipinos. Is Rocket Corporation allowed to engage in the recruitment and placement Of
workers, locally and overseas? Briefly State the basis for your answer. (2015 BAR)

A. NO. Art. 27 Of the Labor Code mandates that pertinently, for a Corporation to validly
engage in recruitment and placement of workers, locally and overseas, at least 75% Of its
authorized and voting capital stock must be owned and controlled by Filipino citizens. Since
only 70% Of its authorized capital stock is owned by Filipinos, it consequently cannot validly
engage in recruitment and placement of workers, locally and overseas.

3. Not disqualified by law or other government regulations

4. Payment of registration fees
5. Posting of surety or cash bonds

a) Regulatory Authorities
The SOLE shall have the power to:
1. Restrict and regulate the recruitment and placement activities of all
agencies, and
2. Issue orders and promulgate rules and regulations

(1) Philippine Overseas Employment Administration

Shall regulate private sector participation in the recruitment and
overseas placement of workers by setting up a licensing and
registration system. It shall also formulate and implement a system
for promoting and monitoring the overseas employment of Filipinos

Labor Situationers. The POEA, in consultation with the DFA, shall

disseminate information on labor and employment conditions,
migration realities and other facts, as well as adherence of particular
countries to international standards on human and workers rights
which will adequately prepare individuals into making informed and
intelligent decisions about overseas employment.

(2) Regulatory and Visitorial Powers of the Department of Labor and

Employment Secretary
Art 36. Regulatory Power. The Secretary of Labor shall have the
power to restrict and regulate the recruitment and placement
activities of all agencies within the coverage of this Title and is
hereby authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement the provisions
of this Title.

Art 37. Visitorial Power. The Secretary of Labor or his duly

authorized representatives may, at any time, inspect the premises,
 books of accounts and records of any person or entity covered by
this Title, require it to submit reports regularly on prescribed forms,
and act on violations of any provisions of this Title

SOLE cannot issue search warrants or warrants of arrest.

b) Ban on Direct Hiring

No employer may hire a Filipino worker for overseas employment except
through the Boards and entities authorized by the DOLE.

The following, however, are exempted from the ban

1) Members of the diplomatic corps;
2) International organizations;
3) Heads of state and government officials with rank of at least deputy
minister;
4) Other employers as may be allowed by the POEA, such as
a) Those provided in 1, 2, and 3 above who bear a lesser rank, if
endorsed by the Philippine Overseas Labor Office (POLO) or head
of missions in the absence of POLO
b) Professionals and skilled workers with duly executed
verified/authenticated contracts containing terms and conditions
over and above the standards set by POEA. Number of hired for
the first time by the employer shall not exceed 5. A group of hires
will be counted as one.
5) Name Hires - those who are able to secure contracts for overseas
employment on their own effort. Hiring must still be processed by POEA.
6) Workers hired by a relative or family member who is a permanent
resident of the host country, except domestic workers.

c) Entities Prohibited from Recruiting

Persons and Entities Disqualified
I. Travel agencies and sales agencies Of airline companies (LC Art- 26);
Reason: Due to conflict of interest

2. Officers or members Of the board Of any corporation or members in a

partnership engaged in the business Of a travel agency;

3. Corporations and partnerships, when any Of its Officers, members Of

the board or partners, is also an officer, member Of the board, or partner
Of a corporation or partnership engaged in the business Of a travel
agency;

4. Persons, partnerships or corporations which have derogatory records,

such as but not limited to those:
a. Certified to have derogatory record or information by the
NBI or by the Anti-Illegal Recruitment Branch Of the POEA;
b. b. Against whom probable cause or prima facie finding Of
guilt for illegal recruitment or Other related cases

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 c. Convicted for illegal recruitment or Other related cases
and/or crimes involving moral turpitude; and
d. d. Agencies whose licenses have been previously revoked or
cancelled by the POEA for violation Of RA 8042, PD 442 as
amended and their IRRS.

5. Any official or employee Of the DOLE, POEA, OWWA, DFA, and

other government agencies directly involved in the implementation Of
RA 8042 and/or any Of his/her relatives within the 4th civil degree Of
consanguinity or affinity, and

6. Persons or partners, officers, and directors Of corporations whose

licenses have been previously cancelled or revoked for violation Of
recruitment laws.

Q: WTTA is a well-known travel agency and an authorized sales agent Of PAL. Since the
majority Of its passengers are overseas workers, WHA applied for a license for
recruitment and placement activities. It stated in its application that its purpose is not
for profit but to help Filipinos find employment abroad. Should the application be
approved? (2006 BAR)

A: NO. The application should be disapproved, because it is prohibited by Art. 26 Of the LC:
"Art. 26. Travel agencies and sales agencies Of airline companies are prohibited from
engaging in the business Of recruitment and placement Of workers for overseas
employment whether for profit or not." Rule I, Part Il POEA Rules and Regulations Governing
the Recruitment and Employment Of Land-Based Workers (2002) disqualifies any entity
having common director or owner Of travel agencies and sales agencies Of airlines,
including any business entity from the recruitment and placement Of Filipino workers
overseas, whether they derive profit or not.

d) Suspension or Cancellation of License or Authority

The SOLE and POEA are vested with power to suspend or cancel any license or
authority to recruit employees for overseas employment.

SOLE and POEA have concurrent jurisdiction to suspend or cancel a license.

License vs . Authority
License is a document issued by the DOLE authorizing a person or entity to
operate a private employment agency.

Characteristics:
a. Place-specific
b. Person-specific
c. Prospective

Authority is a document issued by the DOLE authorizing a person or

association to engage in recruitment and placement activities as a private
recruitment agency.
 Validity of license
Local Employment — license shall be valid for a period Of three (3) years from the
date Of issuance unless sooner revoked or cancelled. (DO 141-4, sec. 12)

Overseas Employment — regular license is valid up to the full term Of four (4) years
from the date Of issuance Of the provisional license.

Provisional license is issued by the POEA which is valid for two (2) years. (POEA
Revised Rules 2016) POEA may upgrade the provisional license during its validity to a
regular license after the recruiter has deployed at least one hundred workers to its
new principal(s). A provisional license does not authorize recruitment for domestic
employment

Grounds for Suspension or Cancellation

1. Commission Of prohibited acts under Art. 34 of LC
2. Publishing job announcements w/o POEA's approval
3. Charging a fee which may be in excess Of the authorized amount before
a worker is employed
4. Deploying workers w/o processing through POEA
5. Recruitment in places outside its authorized area. (Sec 4, Rule Il, Book IV,
POEA Rules)

Grounds for Revocation

1. Incurring an accumulated 3 counts Of suspension by an agency based
on final and executory orders within the period Of validity Of its license;
2. Violations Of the conditions Of license;
3. Engaging in acts Of misrepresentation for the purpose Of securing a
license or renewal; and
4. Engaging in the recruitment or placement Of workers to jobs harmful to
the public health or morality or to the dignity Of the country

Q: A recruitment and placement agency declared voluntary bankruptcy. Among its

assets is its license to engage in business. Is the license Of the bankrupt agency an
asset Which can be sold in public auction by the liquidator? (1998 BAR)

A: NO, the license may not be sold at public auction. The LC (Art 29) provides that no license
to engage in recruitment and placement shall be used directly or indirectly by any person
Other than the one in whose favor it was issued nor may such license be transferred,
conveyed or assigned to any Other person or entity. It may be noted that the grant Of a
license is a governmental act by the DOLE based on personal qualifications, and citizenship
and capitalization requirements. (LC Arts 27-28)

NOTE: Change Of ownership or relationship Of a single proprietorship licensed to engage in

overseas employment shall cause the automatic revocation Of the license.

e) Prohibited Practices [Article 34, Labor Code]

Prohibited Acts in Recruitment

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1. Overcharging — TO charge or accept, directly or indirectly, any amount
greater than that specified in the schedule Of allowable fees prescribed
by the Secretary Of Labor, or to make a worker pay any amount greater
than that actually received by him as a loan or advance.
2. False Notice — TO furnish or publish any false notice or information or
document in relation to recruitment or employment
3. Misrepresentation to Secure License — TO give any false notice,
testimony, information or document or commit any act Of
misrepresentation for the purpose Of securing a license or authority
under this Code.
4. Inducing Worker to Quit — TO induce or attempt to induce a worker
already employed to quit his employment in order to Offer him to
another unless the transfer is designed to liberate the worker from
oppressive terms and conditions Of employment.
5. Inducement Not to Employ — TO influence or to attempt to influence
any person or entity not to employ any worker who has not applied for
employment through his agency.
6. Recruitment for Harmful Jobs — TO engage in the recruitment or
placement of workers in jobs harmful to public health or morality or to
the dignity Of the Republic Of the Philippines.
7. Obstructing Inspection — TO Obstruct or attempt to Obstruct
inspection by the Secretary Of Labor or by his duly authorized
representatives.
8. Contract Substitution — TO substitute or alter to prejudice Of the
worker, employment contract prescribed by the Department from the
time Of actual signing thereof by the parties up to and including the
period Of the expiration Of the same without the approval Of the
Department (BLESD.O. No. 141-12, Nov. 20, 2014)
9. Misrepresentation in Documentation — TO give any false notice,
testimony, information or document or commit any act or
misrepresentation for the purpose Of documenting hired workers with
the POEA, which include the act Of reprocessing workers through a job
order that pertains to non-existent work, work different from the actual
overseas work, or work with different employer whether registered or not
with the POEA;
10. Non-submission Of Reports — TO fail to submit reports on the status Of
employment, placement vacancies, remittance Of foreign exchange
earnings, separation from jobs, departures and such Other matters or
information as may be required by the Secretary under penalty Of law;
11. Involvement in Travel Agency — For an officer or agent of a recruitment
or placement agency to become an officer or member Of the Board Of
any corporation engaged in travel agency or insurance or to be engaged
directly or indirectly in the management Of a travel agency or insurance
agency;
12. Withholding af Documents - To withhold or deny travel documents
from applicant workers before departure for monetary or financial
considerations, or for any other reasons, other than those authorized
under the Labor Code and its implementing rules and regulations;
 13. Failure to Deploy — to fail to actually deploy a contracted w orker
without valid reason as determined by the DOLE;
14. Failure to Reimburse — TO fail to reimburse expenses incurred by the
worker in connection with his/her documentation and processing for
purposes Of deployment, in cases where the deployment does not
actually take place without the worker's fault;
15. Non-Filipino Manager — TO allow a nonFilipino citizen to head or
manage recruitment ag enCY;
16. Excessive interest — TO arrange, facilitate or grant a loan to an Overseas
Filipino Workerwith interest exceeding 8% per annum, which will be
used for payment Of legal and allowable placement fees and make the
migrant worker issue, either personally or through a guarantor or
accommodation party, postdated checks in relation to the said loan;
17. Specifying a Loan Entity — TO impose a compulsory and exclusive
arrangement whereby an Overseas Filipino Worker is required to avail Of
a loan only from specifically designated institutions, entities or persons;
18. Non-Renegotiation Of Loan — TO refuse to condone or renegotiate a
loan incurred by an OFW after his employment contract has been
prematurely terminated through no fault Of his or her own;
19. Specifying a Loan Entity — TO impose a compulsory and exclusive
arrangement whereby an Overseas Filipino Worker is required to
undergo health examinations only from specifically designated medical
clinics, institutions, entities or persons, except in the case Of a worker
whose medical examination cost is shouldered by the principal;
20. Specifying a Training Entity — TO impose a compulsory and exclusive
arrangement whereby an Overseas Filipino Worker is required to
undergo training, seminar, instruction or schooling Of any kind only from
specifically designated institutions, entities or persons, except for
recommendatory trainings mandated by principals where the latter
shoulder the cost Of such trainings;
21. Violation of Suspension — For a suspended recruitment/manning
agency to engage in any kind Of recruitment activity including the
processing Of pending workers' applications;
22. Collection Of Insurance Premium — For a recruitment/manning
agency or a foreign principal/ Er to pass on the OFW or deduct from his
or her salary the payment Of the cost Of insurance fees, premium or
Other insurance related charges, as provided under the compulsory
worker's insurance coverage.

3. Illegal Recruitment[Labor Code and the Migrant Workers and Overseas

employment Act of 1995 (RA 8042), as amended by RA
10022]

Two-kinds of illegal recruiter

1. May be a licensee - performs any of the prohibited practices
2. A non-licensee - any person, corporation or entity
a. which has not been issued a valid license or authority to engage in
recruitment and placement by the SOLE

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 b. whose license or authority has been suspended or cancelled by the
POEA or the SOLE

a) Elements
1. Without being duly authorized;
2. Gave distinct impression that he had the power or ability to deploy
workers
3. Complainants were convinced to part with their hard earned money by
such impression
4. There must be at least a promise or offer of employment

b) Types
1. Simple - committed by a license or holder of authority
2. Any person who is neither a license nor a holder of authority commits
the second type of recruitment
3. Syndicated - committed by three or more persons conspiring and
confederating with one another.
4. Large scale or Qualified - committed against three or more
persons,individually or as a group.

Large scale and Syndicated type are considered as economic sabotage

.
Q: While her application for renewal Of her license to recruit workers for overseas
employment was still pending, Mary-rose Ganda recruited Alma and her 3 sisters, Ana,
Joan, and Mavic, for employment as housemates in Saudi Arabia. Maryrose represented
to the sisters that she had a license to recruit workers for overseas employment and
demanded and received P30,OOO.OO from each Of them for her services. Her
application for the renewal Of her license, however, was denied, and failed to employ
the four sisters in Saudi Arabia. The sisters charged Mary-rose With large scale illegal
recruitment. Testifying in her defense, she declared that she acted in good faith
because she believed that her application for the renewal Of her license would be
approved. She adduced in evidence the Affidavits Of Desistance which the four private
complainants had executed after the prosecution rested its case. In the said affidavits,
they acknowledged receipt Of the refund by Mary-rose Of the total amount Of Php
120,000.00 and indicated that they were no longer interested to pursue the case against
her. Resolve the case With reasons. (2005 BAR)

A: Maryrose is guilty Of large-scale illegal recruitment. It is large-scale illegal recruitment

when the offense is committed against 3 or more persons, individually or as a group. [Art
381b), LCI In view Of the above, her defense Of good faith and the Affidavit Of Desistance as
well as the refund given will not save her because RA 8042 is a special law, and illegal
recruitment is malum prohibitum. (People v. Sau10, GR. NO. 125903, Nov 15, 2000)

Q: A was approached for possible overseas deployment to Dubai by X, an interviewer Of

job applicants for Alpha Personnel Services, Inc. (Alpha), an overseas recruitment
agency. X required A to submit certain documents (passport, NBI clearance, medical
certificate) and to pay P25,OOO as processing fee. Upon payment Of the said amount to
the agency cashier, A was advised to wait for his Visa.
After five months, A Visited the office OfAlpha during Which X told him that he could no
longer be deployed for employment abroad. A was informed by the POEA that While
Alpha was a licensed agency, X was not registered as its employee, contrary to POEA
Rules and Regulations. Under POEA Rules and Regulations, the obligation to register
personnel With the POEA belongs to the officers Of A recruitment agency.
a. May X be held criminally liable for illegal recruitment? Explain.
b. May the officers having control, management or direction Of Alpha Personnel
Services, Inc. be held criminally liable for illegal recruitment? Explain. (2010 BAR)

A. a. NO. X performed his work With the knowledge that he works for a licensed recruitment
agency. He is in no position to know that the Officers Of said recruitment agency failed to
register him as its personnel. (People v. Chowdu"', GR. NO. 129577-80. Feb 15, 2000) The fault
not being attributable to him, he may be considered to have apparent authority to represent
Alpha in recruitment for overseas employment.

b. YES. Alpha, being a licensed recruitment agency, still has obligations to A for processing
his papers for overseas employment. Under Sec. 5(m) Of RA 10022, failure to reimburse
expenses incurred by the worker in connection with his documentation and processing for
purposes Of deployment in cases where the deployment does not actually take place
without the worker's fault, amounts to illegal recruitment.

c) Illegal Recruitment vs. Estafa

Maybe filed simultaneously or separately. The filing of charges for illegal
recruitment does not bar the filing of estafa, and vice versa.

ILLEGAL RECRUITMENT ESTAFA

Malum Prohibitum Malum in se

It is not required that it be shown that Accused defrauded another by abuse

the recruiter wrongfully represented Of confidence, or by means Of deceit
himself licensed recruiter
NOTE: It is essential that the false
NOTE: It is enough that the victims statement fraudulent representation
were deceived as they relied on the constitutes the very cause or the only
misrepresentation and scheme that motive which induces the
caused them to entrust their money complainant to part with the thing Of
in exchange Of what they later value.
discovered was a vain hope Of
obtaining em 10 ent abroad.

Q: Bugo, by means Of Elise pretenses and fraudulent representation, convinced Dado to

give the amount Of Php 120,000.00 for processing the latters papers so that he can be
deployed to Japan. Dado later on found out that Bugo had misappropriated, misapplied
and converted the money for her own personal use and benefit. Can Dado file the cases
Of illegal recruitment and estafa simultaneously?

Page 14 of 9
A: YES. Illegal recruitment and estafa cases may be filed simultaneously or separately. The
filing Of charges for illegal recruitment does not bar the filing Of estafa, and vice versa.
Bugo's acquittal in the illegal recruitment case does not prove that she is not guilty Of estafa.

Illegal recruitment and estafa are entirely different offenses and neither one necessarily
includes or is necessarily included in the Other. A person who is convicted Of illegal
recruitment may, in addition, be convicted Of estafa under Art. 315, par. 2(a) Of the RPC. In
the same manner, a person acquitted Of illegal recruitment may be held liable for estafa.
Double jeopardy will not set in because illegal recruitment is malum prohibitum, in which
there is no necessity to prove criminal intent, whereas estafa is malum in se, in the
prosecution Of which, proof Of criminal intent is necessary

4. Liability of Local Recruitment Agency and Foreign Employer

General rule: Local Recruitment Agency shall be jointly and solidarily liable with its
principal or foreign-based employer for any violation Of the recruitment agreement and
violation Of contracts Of employment

Exception: Where the workers themselves insisted for the recruitment agency to send
them back to their foreign employer despite their knowledge of its inability to pay their
wages, the agency is absolved from liability.

Foreign Employer - A foreign corporation which, through unlicensed agents, recruits

workers in the country may be sued in and found liable by Philippine courts: e.g., direct
hiring by a foreign firm without participation Of POEA

a) Solidary Liability
Liability Of the Private Employment Agency and the Principal or
Foreign-based Employer
They are jointly and solidarily liable for any violation Of the recruitment
agreement and the contracts Of employment.

This joint and solidary liability imposed by law against recruitment

agencies and foreign employers is meant to assure the aggrieved worker
Of immediate and sufficient payment Of what is due him
Such liabilities shall continue during the entire period or duration of the
employment contract and shall not be affected by any substitution,
amendment or modification made locally or in a foreign country of the
said contract,

If the recruitment/placement agency is a juridical being, the corporate

officers, directors or partners as the case may be, shall themselves be
jointly and solidarily liable with the corporation or partnership for the
claims and damages

Q: Santosa Datuman was deployed to Bahrain after paying the required placement
fee. However, her employer took her passport and instead Of working as a saleslady,
she was forced to work as a domestic helper contrary to the agreed salary approved
by POEA. She worked Without compensation for two years because Of her
employers' continued failure and refusal to pay her salary despite demand. When she
finally returned to the Philippines, she filed a complaint against the local agency that
recruited her. Should the suit prosper?

A: YES. under sec. 1 Rule 11, Book 11 of the 1991 POEA Rules and Regulations, the local
agency shall assume joint and solidary liability with the employer for all claims and
liabilities which may arise in connection with the implementation Of the contract,
including but not limited to payment Of wages, health and disability compensation and
repatriation. Private employment agencies are held jointly and severally liable with the
foreign-based employer for any violation Of the recruitment agreement or contract Of
employment, to assure the aggrieved worker Of immediate and sufficient payment Of
what is due him. This is in line with the policy Of the State to protect and alleviate the
plight Of the working class.

b) Theory of Imputed Knowledge

A rule in insurance law that any information material to the transaction,
either poggegged by the one concerned, even though in fact the agent at
the time Of the transaction or acquired by him before its completion, is
deemed to be the knowledge Of the principal, at least so far as the
transaction knowledge is not communicated to the principal at all.

The Theory Of Imputed Knowledge teaches that the knowledge Of the

agent is knowledge Of the principal.

Q: Sunace International Management Services (Sunace) deployed to Taiwan

Montehermoso as a domestic helper under a 12-month contract effective Feb. I,
1997. The deployment was With the assistance Of a Taiwanese broker, Edmund
Wang, President Of Jet Crown International co., Ltd. After her 12-month contract
expired in Feb. 1, 1998, Montehermozo continued working for her Taiwanese employer
for two more years, after Which she returned to the Philippines on Feb. 4, 2000.

Shortly after her return she filed a complaint before the NLRC against Sunace, one
Perez, the Taiwanese broker, and the employer foreign principal alleging that she
was jailed for three months and that she was underpaid. Should Sunace be held liable
for the underpayment for the additional two years that she worked for her Taiwanese
employer under the theory Of imputed knowledge?

A: NO, the theory Of imputed knowledge ascribes the knowledge Of the agent, Sunace, to
the principal Taiwanese Er, not the other way around. The knowledge of the principal-
foreign Er cannot, therefore, be imputed to its agent Sunace. There being no substantial
proof that Sunace knew Of and consented to be bound under the 2-year employment
contract extension, it cannot be said to be privy thereto. As such, it and its owner cannot
be held solidarily liable for and Of Montehermozo's claims arising from the 2-year
employment extension

5. Termination of Contract of Migrant Worker

I. Full reimbursement Of his placement fee with 12% interest per annum;
2. Plus salaries for the unexpired portion Of his employment contract. (RA 10022)

Termination of employment of OFWs takes place in the following instances:

Page 16 of 9
 a. Pre-termination of employment contract with approval of employer;
b. Discharge for a valid cause;
c. Suffered injury or illness
d. an OFW has died

The OFW can pre terminate his employment contract which is akin to resignation. However,
if the employer failed to submit substantial evidence that indeed the OFW voluntarily pre-
terminated his contract; then the OFW is deemed illegally dismissed. The best proof of pre-
termination is a written resignation

Q: Serrano, a seafarer, was hired by Gallant Maritime and Marlow Navigation co. for 12
months as Chief Officer. On the date of his departure, he was constrained to accept a
downgraded employment contract for the position Of Second Officer, upon the
assurance that he would be made Chief Officer after a month. It was not done; hence,
he refused to Stay on as Second Officer and was repatriated to the Phi's. He had served
only 2 months & 7 days Of his contract, leaving an unexpired portion Of 9 months & 23
days.

Serrano filed With the LA a Complaint against Gallant Maritime and Marlow for
constructive dismissal and for payment Of his money claims. The LA rendered a
favorable decision to Serrano awarding him $8,770.00, representing his salary for 3
months Of the unexpired portion Of his contract Of employment applying RA 8042,
Sec 10, par. 5: Money Claims. - In case Of termination Of overseas employment
Without just, valid or authorized cause as defined by law or contract, the workers
shall be entitled to the full Of his placement fee With interest Of 12% per annum, plus
his salaries for the unexpired portion Of his employment contract or for 3 months for
every year Of the unexpired term, whichever is less. Is the subject clause
constitutional?

A: NO. The subject clause contains a "suspect classification" in that, in the computation Of
the monetary benefits Of fixed-term Ees who are illegaly discharged, it imposes a 3
month cap on the claim of OFW with an unexpired portion of one year or more in their
contracts, but non on the claims of other OFWs or local workers with fixed-term
employment. The subject clause singles out one classification of OFWs and burdens it
with a peculiar disadvantage.

The clause is a violation Of the right Of Serrano other OFWs to equal protection and right
to substantive due process, for it deprives him Of property, consisting Of monetary
benefits, any existing valid governmental

Thus, Serrano is entitled to his salaries for the unexpired period Of nine months and 23
Of his employment contract, pursuant to and jurisprudence prior to the enactment Of
RA 8042

B. Employment of Non-Resident Aliens

Only non-resident alien are required to secure employment permit. For resident aliens and
immigrants, what is required is an alien employment registration certificate (AERC)
A foreign national working in PH without the requisite employment permit may file with the
NLRC an illegal dismissal complaint. THe dismissal may be declared invalid and she may be
recognized as an employee but she cannot be awarded claim for monetary benefits.

An employment permit may be issued to:

I. A non-resident alien; or
2. The applicant employer after a determination Of the non-availability Of a person in
the Philippines who is competent, able and willing at the time Of ap plication to
perform the services for Which the alien is desired.
NOTE: For an enterprise registered in preferred areas Of investments, said permit may
be issued upon recommendation Of the Government agency charged with the
supervision Of said registered enterprise. (LC Art. 40)

Persons required to obtain employment permit

General Rule: All non-resident foreign nationals who intend to engage in gainful
employment in the Philippines and any domestic or foreign employer who desires to
engage an alien for employment in the Philippines.

Exceptions:
1. Members Of the diplomatic services and foreign government officials
accredited by the Philippine government;
2. Officers and staff Of international organizations Of which the Philippine
government is a cooperating member, and their legitimate spouses desiring to
work in the Philippines;
3. Foreign nationals elected as members Of the Governing Board who do not
occupy any Other position, but have only voting rights in the corporation;
4. All foreign nationals granted exemption by special laws and all other laws that
may be promulgated by the Congress;
5. Owners and representatives Of foreign principals, whose companies are
accredited by the POEA, who come to the Philippines for a limited period solely
for the purpose Of interviewing Filipino applicants for employment abroad;
6. Foreign nationals Who come to the Philippines to teach, present and/or
conduct research studies in universities and colleges provided that the
exemption is on a reciprocal basis; and
7. Resident foreign nationals and temporary or probationary resident visa holders
employed or seeking employment in the Philippines. (DO 97-09, series 0/2009)

Other Persons Required to Obtain an Alien

I. Non-resident foreign nationals admitted to the Philippines on non-working
visas and who wish to seek employment
2. Missionaries or religious workers Who intend to engage in gainful
employment

NOTE: NO alien employees for nationalized industries such as:

a. Educational institutions;
b. Media; and
C. Public utilities.

Page 18 of 9
 The following categories of foreign nationals are excluded from securing an
employment permit:
1. Members of the governing board with voting rights only and do not
intervene in the management of the corporation or in the day to day
operation of the enterprise.
2. President and Treasurer,
a. who are part-owner of the company
b. Those providing consultancy services who do not have employers
in the Philippines
3. Intra-corporate transferee who is a manager, executive or specialist in
accordance with Trade Agreements and an employee of the foreign
service supplier for at least one (1) year continuous employment
4. All other intra-corporate transferees not within these categories as
defined above are required to secure an AEP
5. Representative of the Foreign Principal/Employer assigned in the Office
of licensed manning agency
6. Contractual service supplier who is a manager, executive or specialist
and an employee of a foreign service supplier which has no commercial
presence in the Philippines:
a. who enters the Philippines temporarily to supply a service
pursuant to a contract;
b. must possess the appropriate educational and professional
qualifications
c. must be employed by the foreign service supplier for at least one
year prior to the supply of service in the Philippines.

Q: The DOLE issued an alien employment permit for Earl Cone, a US. citizen, as sports
consultant and assistant coach for GMC. Later, the Board Of Special Inquiry Of the
Commission on Immigration and Deportation approved Cone's application for a change
Of admission Status from temporary visitor to pre-arranged employee. A month later,
GMC requested that it be allowed to employ Cone as full-fledged coach. The DOLE
Regional Director granted the request.

The Basketball Association Of the Phils. appealed the issuance Of said permit to the
SOLE Who cancelled Cone's employment permit because GMC failed to show that there
is no person in the Philippines Who is competent and Willing to do the services nor that
the hiring Of Cone would redound to the national interest. Is the act of the SLE valid?

A: YES. GMC's claim that hiring a foreign coach is an ENS prerogative has no legal basis.
Under Art. 40 Of the LC, an Er seeking employment Of an alien must first Obtain an
employment permit from the DOLE. GMC's right to choose who to employ is limited by the
Statutory requirement of an employment permit

C. Discriminatory Practices
1. Age (RA 10911 or the Anti-Age Discrimination in Employment Act)
1) It is now unlawful
a) For employers to
 i) Print or publish, or cause to be printed or published, in any form of
media, including the internet, any notice of advertisement relating to
employment suggesting preferences, limitations, specifications and
discrimination based on age
ii) Require the declaration of age or birth date during the application
process;
ii) Require the declaration of age or birth date during the application
process;
iv) Discriminate against an individual in terms of compensation, terms
and conditions or privileges of employment on account of such
individual's age;
v) Deny any employee's or worker's promotion or opportunity for training
because of age;
v) Deny any employee's or worker's promotion or opportunity for training
because of age;
vii) Impose early retirement on the basis of such employee's or worker's
age.
b) For a labor organization to
i) Deny membership to any individual because of such individual's age;
ii) Exclude from its membership any individual because of such
individual's age; or
iii) Cause or attempt to cause an employer to discriminate against an
individual
2) The law however accepts of exceptions
a) Age is a bona fide occupational qualification reasonably necessary in the
normal operation of a particular business or where the differentiation is based
on reasonable factors other than age
b) The intent is to observe the terms of a bona fide seniority system that is not
intended to evade the purpose of this Act
c) The intent is to observe the terms of a bona fide employee retirement or a
voluntary early retirement plan consistent with the purpose of this Act
d) The action is duly certified by the SOLE

2. Gender and/or Marital Status (RA 9710 or the Magna Carta of Women)
The following are acts of discrimination:
a) Payment of a lesser compensation, including wage, salary or other form of
remuneration and fringe benefits to a female employee as against a male employee,
for work of equal value; and
b) Favoring a male employee over a female employee with respect to promotion,
training opportunities, study and scholarship grants solely on account of their sexes.

It shall be unlawful for an employer to require as a condition of employment or

continuation of employment that a woman shall not get married, or to stipulate
expressly or tacitly that upon getting married, a woman employee shall be deemed
reigned.

3. Health Condition (RA 7277 or the Magna Carta for Disabled

Page 20 of 9
 Persons)
No entity, whether public or private, shall discriminate against a qualified disabled
person by reason of disability in regard to job application procedures, the hiring,
promotion, or discharge of employees, employee compensation, job training, and
other terms, conditions, and privileges of employment.

4. Solo Parents (Sec. 7, RA 8972, as amended by RA 11861)

No employer shall discriminate against any solo parent employee with respect to
terms and conditions of employment on account of his or her status, Employers may
enter into agreements with their solo parent employees for a telecommuting
program, as provided in RA No. 11165, otherwise known as the ‘Telecommuting Act':

Provided, That said solo parent employees shall be given priority by their employer.

III. Employment Proper

A. Management Prerogative
The employer's right to conduct the affairs of its business, according to its own discretion and
judgment, is well-recognized. An employer has a free reign and enjoys wide latitude of
discretion to regulate all aspects of employment, including the prerogative to instill discipline in
its employees and to impose penalties, including dismissal, upon erring employees.

This is a management prerogative, where the free will of management to conduct its own
affairs to achieve its purpose takes form. The only criterion to guide the exercise of its
management prerogative is that:
a) the policies, rules and regulations on work-related activities of the employees must
always be fair and reasonable and
b) the corresponding penalties, when prescribed, commensurate to the offense
involved and to the degree of the infraction

General Rule: Management prerogative is the right Of the employer to regulate all
aspects Of employment, such as:

I. Freedom to prescribe work assignments,

2. working methods,
3. Processes to be followed,
4. Regulation regarding transfer Of Ees,
5. Supervision Of their work, lay-off and discipline, and
6. Dismissal and recall Of work.

NOTE: It presupposes the existence Of an Er-EE relationship

An employer is free to regulate, according to his best discretion and best business
judgement, ail aspects Of employment, from hiring to firing, except in cases Of
unlawful discrimination or those which may be provided by law.

Exception: Otherwise limited by law, contract, and principles Of fair play and justice.
Q: Little Hands Garment Company, an unorganized manufacturer Of children's apparel
With around 1,000 workers, suffered losses for the 1st first time in history when its US
and European announced that a normal fare would be charged depending on the
distance traveled by the workers availing Ofthe service.

Was the Little Hands Garments Company Within its rights to Withdraw this benefit
which it had unilaterally been providing its Ees?

A: YES. This is a management prerogative which is not due any legal or contractual
obligation. The facts Of the case do not State the circumstances through which the shuttle
service may be considered as a benefit that ripened into a demandable right. There is no
showing that the benefit has been deliberately and consistently granted, i". with the El's full
consciousness that despite its not being bound by law or contract to grant it. it just the same
granted the benefit.

Limitations:
1. Law
2. CBA
3. Employment contract
4. Employer policy or practice
5. General principles of fair play and justice

Q: Is withholding an Ee's salary a valid exercise Of management prerogative?

A: NO. Any withholding Of an Ee's wages by an Er may only be allowed in the form Of wage
deductions under the circumstances provided in

Q: May a MERALCO Ee invoke the remedy of Of habeas data available where his Er to
transfer her workplace on the Of copies Of an anonymous letter posted imputing to her
disloyalty to the company and calling for her to leave, Which imputation it investigated
but fails to inform Of the details thereof?

A: NO. The writs Of amparo and habeas data Will issue to protect purely property or
commercial concerns nor when the grounds in support Of the petitions therefore are or
doubtful. Employment constitutes a property right under the context Of the due clause Of
the Constitution. The writ Of data directs the issuance Of the writ only public officials or Ees,
or private individuals or entities engaged in the gathering, collecting or storing Of data or
information regarding an aggrieved party's person, family or and that MERALCO (or its
Officers) is not engaged in such activities.

This includes the right to make profit.

Consistent With the policy Of the State to bridge the gap between the underprivileged
workingman and the more affluent employers, the balance in favor Of the working man
should be titled without being blind to the concomitant right Of the employer to the
protection Of his property.

1. Discipline

Page 22 of 9
 The employer has the prerogative to instill discipline in his employees and to impose
reasonable penalties, including dismissal, on erring employees pursuant to company
rules and regulations.

Company policies and regulations are, unless shown to be grossly oppressive or

contrary to law, generally binding and valid on the parties.

Limitations
While management has the prerogative to discipline its Ees and to impose
appropriate penalties on erring workers, pursuant to company rules and regulations.
However, such management prerogative must be exercised in good faith for the
advancement of the Er's interest and not for the purpose Of defeating or
circumventing the rights Of the Ees under special laws and valid agreements.

2. Transfer of Employees
Transfer is the lateral movement from one position to another of equivalent rank,
level or salary without break of service.

RIght to transfer
In the pursuit Of its legitimate business interests, especially during adverse business
conditions, management has the prerogative to transfer or assign Ees from one Office
or area Of operation to another provided there is no demotion in rank or diminution
Of salary, benefits and Other privileges and the action is not motivated by
discrimination, bad faith, or effected as a form Of punishment or demotion without
sufficient cause. This privilege is inherent in the right Of Ers to control and manage
their enterprises effectively.

Requisites
a. Must be reasonable or have a sound purpose;
b. Must not inconvenient the welfare of the EE;
c. Not prejudicial to the EE;
d. Not involve a demotion of rank or status;
e. Not be motivated by discrimination;
f. Not made in bad faith;
g. Not be effected as a form of punishment without sufficient cause.

NOTE: The right Of Ees to security of tenure does not give them vested rights to their
positions to the extent Of depriving management Of its prerogative to change their
assignments or to transfer them.

Failure to observe these requisites, the transfer is deemed CONSTRUCTIVE DISMISSAL.

Same reliefs as that of illegal demotion

An EE who refuses to be transferred when such is valid, is guilty of insubordination or

willful disobedience of a lawful order;
VALID REFUSAL
a. Overseas assignment;
b. Consequent to promotion; (Scalar transfer)
c. To avoid conflict of interest
 d. Occasioned by the abolition of the position

INVALID REFUSAL
a. Due to parental obligations
b. Additional expenses;
c. Inconvenience;
d. Hardship and anguish.

Q: May the Er exercise his right to transfer an Ee and compel the latter to accept the
same if said transfer is coupled With or is in the nature Of promotion?

A: NO. There is no law that compels an Ee to accept promotion. Promotion is in the nature Of
a gift or a reward which a person has a right to refuse. When an Ee refused to accept his
promotion, he was exercising his right and cannot be punished for it. While it may be true
that the right to transfer or reassign an Ee is an Er's exclusive right and the prerogative Of
management, such rights not absolute

Q: Manalo is a member Of the Accountancy Department Of Ateneo de Naga University's

College Of Commerce and part time Manager Of the Ateneo de Naga MultiPurpose
Cooperative. The Grievance Committee Of the University found her in "fraud in issuance
Of Official receipts, collection Of cash Without documented remittance to the
cooperative, use Of inappropriate forms Of documents cash receipts' ' and, thus,
recommended his dismissal". Instead Of dismissing Manalo, the University President
transferred ManalO to teach Economics in another Department. Was Manalo
constructively dismissed?

A: NO. Transferring employees, to the extent that it is done fairly and in good faith, is a valid
exercise Of management prerogative and will not, in and Of itself, sustain a charge Of
constructive dismissal. In this case, the acts committed by Manalo run afoul from the
principles Of integrity and Objectivity governing ethics and education in the accountancy
profession as mandated by the International Federation Of Accountants. Relevant as it is,
ethical behavior takes on even greater significance in the education and training Of
individuals who are prospective members Of the profession. Professionals who concurrently
take on the role Of educators act as gatekeepers to the esteemed ranks Of a profession or as
channels Of skills and knowledge

Burden
The Er must be able to show that the transfer is not unreasonable, inconvenient or
prejudicial to the Ee; nor does it involve a demotion in rank or a diminution Of his salaries,
privileges and Other benefits. Should the Er fail to overcome this burden Of proof, the Ee's
transfer shall be tantamount to constructive dismissal.

Such that the Er must be motivated by good faith. The contracting out should not be
resorted to circumvent the law or must not have been the result Of malicious or arbitrary
actions

It is the inherent prerogative Of an employer to transfer and reassign its employees to meet
the requirements Of its business. Be that as it may, the prerogative Of the management to
transfer its employees must be exercised without grave abuse Of discretion. The exercise Of
Page 24 of 9
the prerogative should not defeat an employee's right to security Of tenure. The employer's
privilege to transfer its employees to different workstations cannot be used as a subterfuge
to rid itself Of an undesirable worker

3. Productivity Standard
An employer is entitled to impose productivity standards for its workers, and in fact,
non-compliance may be visited with a penalty even more severe than demotion

Failure to observe prescribed standards of work, or to fulfill reasonable work

assignments due to inefficiency may constitute just cause for dismissal. Such
inefficiency is understood to mean failure to attain work goals or work quotas, either
by failing to complete the same within the allotted reasonable period, or by producing
unsatisfactory results. This management prerogative of requiring standards may be
availed of so long as they are exercised in good faith for the advancement of the
employer's interest

Q: May an Er impose productivity standards for its workers?

A: YES. An Er is entitled to impose productivity standards for its workers. In fact,

noncompliance may be visited with a penalty even more severe than demotion. The practice
Of a company in laying Off workers because they failed to make the work quota has been
recognized in this jurisdiction. Failure to meet the sales quota assigned to each Of them
constitute a just cause Of their dismissal, regardless Of the permanent or probationary
Status Of their employment

Likewise failure to observe prescribed standards Of work or to fulfill reasonable work

assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency is
understood to mean failure to attain work goals or work quotas, either by failing to complete
the same within the allotted reasonable period, or by producing unsatisfactory results. This
management prerogative Of requiring standards may be availed Of so long as they are
exercised in good faith for the advancement Of the ERs interest.

4. Bonus
It is an amount granted and paid to an Ee for his industry and loyalty which
contributed to the Success Of the Er's business and made possible the realization Of
Profits.

General Rule
The grant of a bonus or special incentive, being a management prerogative, is not a
demandable and enforceable obligation, except when the bonus or special incentive
1. is made part of the wage, salary or compensation of the employee, or
2. is promised by the employer and expressly agreed upon by the parties.

Exception: Given for a long period Of time, provided that:

a. Consistent and deliberate — Er continued giving benefit without any
condition imposed for its payment;
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 or compensation agreed and stated in the
employment contract;
 e. It was promised to be given Without any conditions imposed for its
payment in which case it is deemed part Of the wage;
f. It has ripened into practice. (Marcos v. NLRC, GR. No. 111744, sept 8, 1995)

Q: The projected bonus for the Ees Of Suerte co. was 50% Of their monthly
compensation. Unfortunately, due to the slump in the business, the president reduced
the bonus to 5% Of their compensation. Can the company unilaterally reduce the
amount Of bonus? (2002 BAR)

A: YES. The granting Of a bonus is a management prerogative, something given in addition

to what is ordinarily received by or strictly due the recipient. An Er cannot be forced to
distribute bonuses when it can no longer afford to pay. TO hold Otherwise would be to
penalize the Er for his past generosity.

5. Change of Working Hours

The working hours may be changed, at the discretion Of the company, should such
change be necessary for its operations, and that employees shall observe such rules as
have been laid down by the company. (Interphil Laboratories Union-FFWv. Interphil
Laboratories, Inc. GR. No. 142824, Dec. 19, 2001)

Management retains the prerogative, whenever exigencies Of the service so require,

to change the working hours Of its employees. The exercise Of management
prerogative, however, is not absolute as it must be exercised in good faith and with
due regard to the rights Of labor". (Royal Plant Workers Union v. Coca-Cola Bottlers
Phil, Inc.; GR. No. 198783, April 15, 2013)

Q: May the normal hours fixed in Art. 83 Of the LC be reduced by the Er? Explain.

A: It depends. Art. 83 provides that the normal hours Of work of an Ee shall not exceed 8
hours a day. This implies that the Er, in the exercise Of Its management prerogatives, may
schedule a work shift consisting Of less than 8 hours. And following the principle of "a fair
day's wage for a fair day/s labor," the Er is not obliged to pay an Ee, working for less than 8
hours a day, the wages due for 8 hours.

Nonetheless, if by voluntary practice or policy, the Ee for a considerable period Of time has
been paying his Ees' wages due for 8 hours work although the work shift less than B hours
(e.g., seven) it cannot later on increase the working hours without an increase in the pay Of
the Ees affected. An Er is not allowed to withdraw a benefit which he has voluntarily given.

Q: Sime Darby Pilipinas issued a memorandum implementing a new work schedule. It

eliminated the 30-minute paid "on call" lunch break Of its monthly salaried employees
and instead provided for a IO-minute break time and one hour lunch break. The
employees felt adversely affected by the memorandum and filed before the Labor
Arbiter a complaint for unfair labor practice.

Page 26 of 9
The LA dismissed the complaint on the ground that the change in the work schedule
constituted a valid exercise Of management prerogative. Is changing the work schedule
Of the employees a valid exercise Of management prerogative?

A: YES. The right to fix the work schedules Of the employee rests principally on their
employer. The petitioner, as the employer, cites as reason for the adjustment the efficient
conduct Of its business operations and improved production. Management retains the
prerogative, whenever exigencies Of the service so require, to change the working hours its
employees.

So long as such prerogative is exercised in good faith for the advancement Of the employer's
interest and not for the purpose Of defeating and circumventing the rights Of the
employees under special laws or under valid agreements, this court will uphold such
exercise.

6. Bona Fide Occupational Qualifications

Where the job itself necessarily requires a particular question qualification, then the
job applicant or worker who does not possess it may be disqualified on that basis. This
will not be unlawful discrimination. (Azucena, Vol. I, 2016,

E.g., One whose job is to preach the teachings Of a religious sect must himself/herself
be a member Of that sect; or where the job itself necessarily requires a male, then the
female is disqualified as when the job is to haul or saw logs in logging operations.

TO justify a BFOQ, the Er must prove two factors:

1. That the employment qualification is reasonably related to the essential
operation Of The job involved; and
2. That there is a factual basis for believing that all or substantially all persons
meeting the qualification would be unable to properly perform the duties of
the job

1) To be considered a bona fide occupational qualification, the policy must

a) Serve a legitimate business purpose;
b) Be specific to the occupation at issue; and
c) Reflect an inherent quality that would reasonably guarantee work efficiency

2) Employment may not be limited to persons of a particular sex, religion, or national

origin unless the employer cas show that such qualifications are necessary in the
performance of the job involved.

7. Marriage Between Employees of Competitor-Employers

A policy prohibiting spouses from being employed in the same company. There must
be compelling business necessity for which no alternative exists other than the
discriminatory practice for it to be VALID.

Theories on Employment Discrimination

 1. Disparate Treatment — Plaintiff must prove that an employment policy is
discriminating on its face;
2. Disparate Impact - Plaintiff must prove that a facially neutral policy has a
disproportionate effect on a part of the class.

Q•. Is the stipulation in the employment contract prohibiting an Ee from marrying

another Ee Of a competitor company a valid exercise Of Management
prerogative?

A: YES. The policy is not aimed at restricting a personal prerogative that belongs only
to the individual. However, an Ee's personal decision does not detract the Er from
exercising management prerogatives to ensure maximum profit and business
Success. It does not impose an absolute prohibition against relationships between its
Ees and those Of competitor companies. Its Ees are free to cultivate relationships with
and marry persons Of their own choosing. What the company merely seeks to avoid is
a conflict Of interest between the employee and the company that may arise Out Of
such relationships. It is also not violative Of the equal protection clause because it is a
settled principle that the commands Of the equal protection clause are addressed
only to the State or those acting under color Of its authority.

Corollarily, it has been held in a long array Of U.S. Supreme Court decisions that the
equal protection clause erects no shield against merely private conduct, however,
discriminatory or wrongful. The only exception occurs when the State in any Of its
manifestations or actions has been found to have become entwined or involved in the
wrongful private conduct. (Duncan Association of Detailman-PTGWO and

The failure Of the employer to prove legitimate business concern in imposing the
questioned policy cannot prejudice the employee's right to be free from arbitrary
discrimination based upon stereotypes Of married persons working together in one
company. Thus, for failure Of the employer to present undisputed proof Of a
reasonable business necessity, we rule that the questioned policy is an invalid exercise
Of management prerogative. (Star Paper Corp. v.

8. Post-Employment Restrictions
1) An EE is prohibited after separation from joining a competitor. VALID, subject to
limitations as to duration and place.

2) A non-compete clause is not necessarily void for being in restraint of trade as long
as there are reasonable limitations as to three (3) things:time, place and trade

3) Restrictive covenant clauses. — In determining whether the contract is reasonable

or not, the following factors should be considered:
a) whether the covenant protects a legitimate business interest of the
employer;
b) whether the covenant creates an undue burden on the employee;
c) whether the covenant is injurious to the public welfare;
d) whether the time and territorial limitations contained in the covenant are
reasonable; and

Page 28 of 9
 e) whether the restraint is reasonable from the standpoint of public policy.

Q: Genesis Fulgencio had been working for Solidbank Corporation since 1977. He later
on applied for retirement. Solidbank required Genesis to sign an undated Undertaking
where he promised that "[hel Will not seek employment With a competitor bank or
financial institution Within one (I) year from Feb. 28, 1995, and that any breach Of the
Undertaking or the provisions Of the Release, Waiver and Quitclaim would entitle
Solidbank to a cause of action against him before the appropriate courts Of law."
Equitable Banking Corporation (Equitable) employed Genesis.

Is the post-retirement employment ban incorporated in the Undertaking which Genesis

executed upon his retirement unreasonable, oppressive, hence, contrary to public
policy?

A: NO. There is a distinction between restrictive covenants barring an Ee to accept a

postemployment competitive employment or restraint on trade in employment contracts
and restraints on post-retirement competitive employment in pension and retirement plans
either incorporated in employment contracts or constitutional mandate on the promotion
Of justice

B. Labor Standards
1. Conditions of Employment
a) Coverage
General Rule: Title I, Book Ill Of the Labor Code dealing with hours Of work,
weekly rest periods, holidays, service incentive leaves and service charges,
covers all employees in all establishments, whether for profit or not. (LC Art 82)

Exception: (GF-MOM-WPD)
a. Government employees;

Note: GOCCs without original charter or those which have been created
pursuant to the corporation code, shall be subject to the labor code.

b. Managerial employees;
Conditions:
* Primary duty consists of the management of the establishment in
which they are employed or of a department or subdivision thereof;
* They customarily and regularly direct the work of two or more
employees therein;
* They have authority to hire or fire other employees.
Note: They are excluded because they are not subject to the rigid observance of
regular office hours, as the true worth of their service do not depend so much
on time, they spend in office but more on the results of their accomplishments.

c. Officers and members of the managerial staff;

Conditions:
* Primary duty consists in the performance of work directly related to
management policies of their employer;
 * Customarily and regularly exercise discretion and independent
judgment;
* Regularly and directly assist a manger, exercises supervision;
* They do not devote more than 20% of their hours worked in a
workweek to activities, which are not directly and closely related to the
performance of the work.
Note: They customarily and regularly exercise discretion and independent
judgement.
Note: There jobs are not mere routinary or clerical.

d. Field personnel;
Conditions:
* Regularly perform their duties away from the principal place of
business;
* Whose actual hours of work in the field cannot be determined with
reasonable certainty.
Note: They are free from the personal supervision of the employer and the latter
cannot determine with reasonable certainty the actual number of hours work
expended for the employer’s interest.
e. Member of the family of the employer who are dependent upon
him for support;
Conditions:
* Husband/Wife;
* Parents;
* Children;
* Other ascendants and descendants;
* Brothers/Sisters, whether full or half-blood.
Note: They are exempted for the support given by the employer may exceed
the benefit for which an employee is entitled.

f. Domestic helpers;
g. Persons in the personal service of another; and

Ae those who perform services in the employer’s home, which are usually
necessary and desirable for the maintenance and enjoyment thereof, or
minister to the personal comfort, convenience, or safety of the employer as well
as the members of his employer’s household.
Jurisprudence:
*. House helper cannot be transferred to business undertaking of the
employer;
*. Laundrywoman in staff houses of a company is not serving the family,
and therefore, is a regular employee;
*. A domestic servant who prays in the buddhist temple, arrange
meetings between vistors and head monk, supervise the preparation of the
food for the visitors, act as liason with government offices, pay electric, water
and telephone bills, shall be construed as an act of domestic helper, that is,
providing personal comfort and convenience to the immediate members of the
family in the home.

Page 30 of 9
 h. Workers paid by results.
Classes:
* On piece-work;
* Takay;
* Pakiao or task basis.

Note: Payment of this type of worker is determined by the results of the work
performed or the number of units produced, not the number of hours used in
the completion of the job or the time spent in production.

In piecework, the stress is placed on the unit of work produced or the quantity
thereof. In case of task work, the basis thereof, is the task itself, payment is
rendered on the terms of completion of work.

Jurisprudence:
Tailors and similar workers hired in tailoring establishment, albeit paid weekly
wages on piece-work basis, are nevertheless employees and not independent
contractors, and accordingly, as regular employees paid on a piece-rate basis,
they are not entitled to overtime pay, holiday pay, premium pay for holiday pay
or rest day and service incentive leave pay.
Note: The aforementioned employees are not entitled to:
a. Overtime pay;
b. Premium pay for rest day and holidays;
c. Night shift differential;
d. Holiday pay;
e. Service incentive leave and service charges.

b) Hours of Work
(1) Normal Hours of Work and Hours Worked
Normal Hours of Work
Article 83. Normal hours of work – Shall not exceed 8 hours a
day:
Health personnel shall hold regular office for 8 hours a day, for 5
days a week, exclusive of time for meals, except, where exigencies
of the service require that such personnel work for 6 days or 48
hours, in which case, they shall be entitled to 30% of their regular
wage.

Normal hours of work; reduced on account of business losses;

compressed workweek scheme, allowed:

The eight hour work does not preclude the employer in the exercise
of management prerogative to reduce the number of working
hours, provided that there is no diminution of existing benefits.

Workdays can be reduced on account of serious business losses

incurred by the company
Hours Worked
Article 84. Hours worked – shall include all time during which an
employee is required to be on duty or to be prescribed workplace,
and all time during which employee is suffering or permitted to
work.

Rest periods of short duration during working hours shall be

counted as hours worked.

Compensable hours shall include:

a. All time during which an employee is required to be on duty
or to be at the employer’s premises or to be at a prescribed place;

b. All time during which an employee is suffered or permitted

to work.

Note: The fact that the employee is required to be present albeit

not actually doing any work, is still deemed working time.

Principles In determining hours worked:

a. All hours are hours of worked which the employee is required
to give to his employer, regardless of whether or not such hours are
spent in productive labor or involve physical or mental exertion;
b. An employee need not leave the premises of the workplace
in order that his rest period shall not be counted, it being enough
that he stops working, may rest completely and may leave his
workplace, to go elsewhere, whether within or outside the premises
of his work place;

c. If the work performed was necessary, or it benefited the

employer, or the employee could not abandon his work at the end
of his normal working hours because he had no replacement, all
time spent for such work shall be considered as hours worked, if the
work was with the knowledge of his employer or immediate
supervisor;

d. The time during which an employee is inactive by reason of

interruptions in his work beyond his control shall be considered
working time either if the imminence of the resumption of work
requires the employer’s presence at the place of work or if the
interval is too brief to be utilized effectively and gainfully in the
employee’s own interest.

Instances of working time:

a. Time spent by the employee for the benefit of the employer
whether such service is necessary or not such as serving coffee to
visitors;

Page 32 of 9
 b. Time spent by the office messenger in playing chess when
not yet summoned by his supervisor; (compensable idle time)
c. Travel time which is in connection with the work of the
employer; if not, it is not considered as working time;
d. Time spent during which an employee is inactive by reason
of interruptions beyond his control is working time, such as 20
minute electric power failure or machine breakdowns. The pay for
this non-productive time is known as “idle-time pay.” Where work is
broken or is not continuous, the idle time that an employee may
spend for rest is not counted as working time.

Exception to Idle-time pay:

a. Employees can leave their workplace or go elsewhere
within or without the work premises;
b. The employee can use the time effectively for their
own interest.

Note: In such cases, the employer can extend the working hours of
his employee outside the regular working schedule to compensate
for the loss of productive man-hours without being liable for
overtime payment.

e. Waiting time spent by an employee shall be considered as

working time if waiting is an integral part of his work or the
employee is required or engaged by the employer to wait. In effect,
he is under the absolute control of the employer such that the
employee is effectively deprived of the time to attend to other
personal pursuits.
Note: Assembly time is not considered as waiting time, if there is no
absolute control of the company.

An employee who is required to remain on call in the employer’s

premises or so close thereto that he cannot use the time effectively
and gainfully for his own purpose shall be considered as working
while on call.

However, an employee not required to leave work at his home or

with company officials where he may be reached is not working
while on call.

f. Sleeping time is compensable working time if the nature of

the employee's work allows sleeping without interrupting or
prejudicing the performance of his work. A utility man which only
does his job during the arrival of the goods, and thereafter, sleeps
and wakes up during the arrival of another goods, the sleeping time
is compensable;

g. Time spent by union’s officers in the CBA is not compensable

working time, unless it is so provided in the CBA.
 h. Attendance in lectures, meetings and training programs is
not compensable if the following conditions are present:
* Attendance is outside the employee’s regular working hours;
* Attendance is voluntary;
* Employees do not perform any productive work during such
attendance.

Note: Attendance in CBA negotiations or grievance machinery

conference is compensable hours worked.

i. Preliminary or postliminary activities are deemed performed

during working hours, if such activities are controlled and required
by the employer and are pursued necessarily and primarily for the
employer’s benefit. (portal pay)

j. Rest period running from 5 to 20 mins is considered as

compensable working hours;

k. Semestral break of teachers is considered as compensable

hours worked for it is a form of an interruption beyond their control.

(2) Compressed Work Week

Alternative arrangement whereby the normal working period
during the week is reduced to less than 6 days but the total
number of hours worked during the week shall remain at 48 hours.
It has the following effects:
a. Work beyond 8 hours will not be compensable by overtime,
provided the total number of hours per day shall not exceed 12
hours or 48 hours a week shall be subject to overtime pay;
b. CWW are entitled to meal periods of not less than 1 hour, rest
days, holiday pay, rest day or leaves in accordance with the law,
company policy or practice, and CBA;
c. It should result in the diminution of benefits. Reversion to
normal working schedule shall be valid, provided that the
employees were duly notified and it is within a reasonable period of
time.

CWW results from an express voluntary agreement of majority of

the covered employees or their duly authorized representatives.

A three-day work week is illegal. — Illegal compressed workweek

when work days were reduced from 6 to 3 days a week, resulting to
illegal reduction of work hours, as there was no adequate proof of
losses. Financial losses must be shown before a company can
validly opt to reduce the work hours of its employees.

Page 34 of 9
 Waiving of OT in CWW is valid. D.O. No. 21 sanctions the waiver of
overtime pay in consideration of the benefits that the employees
will derive from the adoption of a compressed workweek scheme.

Flexible work arrangements refer to alternative arrangements or

schedules other than the traditional or standard work hours,
workdays and workweek.

(3) Meal Periods

Article 85. Meal periods:
Not less than 60 minutes, which can be taken inside or outside
company premises. It must be undisturbed lunch break; the
employees can freely and effectively use this hour not only for
eating but also for their rest and comfort.

Instances wherein an employer can prescribe a shorter meal

period of at least 20 minutes:
a. Where the work is non-manual in nature or does not involve
strenuous physical exertion;
b. Where the establishment regularly operates not less than 16
hours a day;
c. In case of actual or impending emergencies or there is
urgent work to be performed on machineries, equipment or
installation to avoid serious loss which the employer would
otherwise suffer;
d. When the work is necessary to prevent serious loss of
perishable goods.

Note: It is compensable if it is less than 60 minutes.

(4) Night-Shift Differential

Article 86. Night Shift Differential – 10% of regular wage for each
hour of work performed between 10pm to 6am.

Computation is:
Basic pay/8 x 110% for each hour between 10pm to 6am.

Reason:
It is based on the reason that nighttime is when the employee
should be sleeping. It is violative of the law of nature for it is the
period of rest and sleep

(5) Overtime Work

Article 87. Overtime work – Work may be performed beyond 8
hours a day provided that the employee is paid an additional
compensation equivalent to his regular wage plus at least 25%
thereof. Work performed beyond 8 hours on a holiday or rest day
shall be paid an additional compensation equivalent to the rate of
the 8 hours on a holiday or rest day plus at least 30% thereof.
Overtime pay if done on a regular day – Basic pay x 125%

Works on holiday or rest day not exceeding 8 hours– Basic pay x

130%

Overtime on holiday or rest day – Basic pay x 130% + additional 39%

= Basic pay x 169%

Condition for entitlement of overtime pay:

There must be sufficient proof that the said overtime work was
actually performed, before an employee may avail of the said
benefit.

Note: If the employment contract specifies a 12-hour workday fixed

at a monthly salary rate that is above the legal minimum wage,
such facts entitles the employee to overtime pay.

Note: Overtime pay for seaman is determined through the actual

work performed in excess of their regular working hours.

Note: Tugboat engineer albeit required to be on board the boat

beyond 8 hours, does not necessarily entitled the latter to an
overtime pay. Nevertheless, if the engineer was working beyond 8
hours, then it shall warrant the payment of overtime.

Right to claim overtime pay not waivable:

Overtime pay is in the category of benefits for it is governed by law
not by agreement of the parties. Thus, the right to collect it cannot
be waived.

Principle of estoppel and laches not applicable:

If allowed it would frustrate the purpose of the law by indirection.

NSD and overtime pay can be subsequently be paid, NSD is for the
work done at 10pm to 6am, while, overtime pay is for the work done
in excess of the regular working hours.

Overload work and overtime work distinguished:

When a teacher is engaged to undertake actual additional teaching
work after completing his regular teaching load, such additional
work is referred to as “overload.”
Overload is performed within 8 hours normal working day; overload
is considered part of basic pay for the determination of 13th month
pay.

Overload only becomes overtime if done in excess of the working

hours.

Article 88. Undertime Not Offset by Overtime:

Page 36 of 9
 Undertime work on any particular day shall not be offset by
overtime work on any other day. Permission given to the employee
to go on leave on some other day of the week shall not exempt the
employer from paying additional compensation.

To allow undertime work on a particular day to be offset by

overtime work will work to the great advantage of the employer, for
it will exempt him from paying additional pay for overtime work.
The proper method is to deduct undertime or absences against the
employee’s accrued leave but pay him the overtime to which he is
rightfully entitled.

Article 89. Emergency overtime work: (Compulsory overtime

work)
a. Country is at war or when any other national or local
emergency has been declared by the Congress or by the Chief
Executive;
b. Necessary to prevent loss of life or property or in case of
imminent danger to public safety due to an actual or impending
emergency in the locality caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or calamity;
c. Urgent work to be performed on machines, installations, or
equipment, in order to avoid serious loss or damage to the
employer or some other cause of similar nature;
d. Work is necessary to prevent loss or damage to perishable
goods;
e. Completion or continuation of the work started before the 8
hour is necessary to prevent serious obstruction or prejudice to the
business or operations of the employer.

Note: Employee who has performed the above enumerated is

entitled to an additional compensation.

Note: If the situation is not mentioned above, no employee shall be

compulsory required for overtime work.

Note: A worker may refuse to perform compulsory overtime work,

however, he may legally be dismissed on the ground of
insubordination.

(6) Computation of Additional Compensation (Rates only)

Work on w/o NS = Regular w/ NS = w/o OT Pay = BHR OT Pay w/ NS =

NS BHR

Ordinary day x1 x1.1 x1.25 x1.375

Rest day (RD) x1.3 x1.43 x1.3 x1.859

Special day (SD) x1.3 x1.43 x1.69 x1.859

 SD on RD x1.5 x1.65 x1.95 x2.145

Regular Holiday (RH) x2 x2.2 x2.6 x2.86

Double Holiday (DH) x.3 x3.3 x3.9 x4.29

DH on RD x3.9 x4.29 x5.07 x5.577

Article 93. Compensation for rest day, Sunday or holiday work.

a. Work on rest day = Basic x 130%
b. Rest day is Sunday = Basic x 130%
c. Work on Sunday and holidays if he has no regular work days
and rest days = Basic x 130%
d. Work on legal holiday = Basic x 130%
e. Work on holiday also rest day = Basic x 150%
f. CBA provides for higher rates it shall be observed.

Note: In Regular holiday the employee is entitled, even if he did

not work = 100%
In Special holiday the employee is not entitled if unworked.
Employee work on RH = 200% of BW
Special holidays if worked = 130%
SP and RD = 150%
RH = 200% if OT = 260%
RH and RD = 260% if OT = 338%
DH = 400%

c) Rest Periods
Article 91. Right to weekly rest day – it shall be the duty of every employer,
whether for profit or not, to provide each of his employees a rest period of not
less than 24 consecutive hours after every 6 consecutive normal work days.

The employer shall determine and schedule the weekly rest day of his
employee subject to CBA and such rules and regulation as SOLE may provide.
However, the employer shall respect the preference of employees as to their
weekly rest day when such preference is based on religious grounds.

If the preference based on religious grounds will inevitably result in serious

prejudice or obstruction to the operations of the undertaking; and the
employer cannot normally be expected to resort to other remedial measures,
the employer may so schedule the weekly rest day of their choice for at least 2
days in a month.

Note: Employer cannot compel an employee to work on Saturday as it is the

day declared by his religion of sabbath day. Likewise, the employee cannot
compel the employer to open on Sunday. The remedy is to charge Saturday as
his rest day.

Page 38 of 9
 Article 92. When employer may require work on a rest day – the employer
may require his employees to work on any day:
a. Actual or impending emergencies caused by serious accident, fire,
flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent
loss of life and property, or imminent danger to public safety;
b. Urgent work to be performed on the machinery, equipment, or
installation to avoid serious loss which the employer would otherwise suffer;
c. Event of abnormal pressure of work due to special circumstances,
where the employer cannot ordinarily be expected to resto to other measures;
d. Prevent loss or damage to perishable goods;
e. Nature of work requires continuous operations and the stoppage of
work may result in irreparable injury or loss to the employer;
f. Analogous or similar to the foregoing as determine by the SOLE.
Note: Purpose, the life of the employee itself depends upon the life of the
management and vice-versa.

d) Holidays
Article 94. Right to Holiday Pay – Every worker shall be paid his daily wage
during regular holiday except “in retail and service establishments regularly
employing less than 10 workers.”

Employer may require an employee to work on any holiday but such employee
shall be paid in a compensation equivalent to twice his regular rate.
Legal holiday is a day designated or set apart by the legislature, for a purpose
within the meaning of the term holiday, in order to commemorate an
important event.

Note: In Regular holiday the employee is entitled, even if he did not work = 100%
In Special holiday the employee is not entitled if unworked.
Employee work on RH = 200% of BW
Special holidays if worked = 130%
SP and RD = 150%
RH = 200% if OT = 260%
RH and RD = 260% if OT = 338%
DH = 400%

Effects of absences on holiday pay; successive regular holiday:

a. Absent and is on leave with pay, entitled to holiday pay;
b. Absent without pay on the day immediately preceding the RH, he is
not entitled to pay;
c. If the immediately preceding holiday is a non-working day or the
scheduled rest day of an employee, he is not considered to be on leave on that
day, in which he is entitled to holiday pau, if the employee should work on the
day immediately preceding the non-working holiday or rest day;
d. 2 successive holidays like Holy Thursday and Good Friday, an employee
is not entitled to holiday for both holidays if he is absent from work without pay
on the day immediately preceding the first RH, But if he works on the first
holiday, he is entitled to holiday pay on the second day.
 Effects of business closure on holiday pay:
a. If temporary or periodic shutdown the RH falling within such period
shall be compensated;
b. If due to business reverses authorized by the SOLE, not entitled.
Holiday pay of certain types of employees:
a. Private school teachers, including faculty members, not paid for RH
during semestral brake. However, they shall be paid for RH during Christmas
season;
b. Faculty members paid per lecture are not entitled to holiday pay,
because they are paid only for work actually done. They should not expect
payment for unworked days;
c. Paid by results or output, or piecework, his holiday pay shall not be less
than his average daily earnings for the last 7 actual working days preceding the
regular holiday; provided however, that in no case shall the holiday pay be less
than the applicable statutory minimum wage;
d. Seasonal workers not paid during off-season for RH, when they are not
at work;
e. Workers who have no regular working days shall be entitled to the
benefits.

e) Service Charge [Article 96 of the Labor Code, as amended by RA 11360]

Service charge refers to the amount that is added to the bill for work or service
rendered.

All service charges actually collected by covered establishments shall be

distributed COMPLETELY and EQUALLY, based on actual hours or days of work
or service rendered among the covered employees, including those already
receiving the benefit sharing in the service charges.

Covered employees refer to all employees, except managerial employees,

under the direct employ of the covered establishment

Article 96. Services charges – are for all employees covered with the
exception of managerial employers.
- It shall be distributed among them equally.
- In case the service charge is abolished, the share of the covered employees
shall be considered integrated in their wages.

Coverage:
a. Hotels/Lodging houses;
b. Restaurants;
c. Night clubs;
d. Massage clinics;
e. Cocktail lounges;
f. Bars;
g. Casinos;
h. Gambling houses, and analogous;

Page 40 of 9
 i. Including entities operating primarily as private subsidiaries of the
Government such as GOCC w/o original charter.

f) Occupational Safety and Health Standards Law (RA 11058)

(1) Covered Workplaces [Sec. 3(c)]
Refer to establishments, projects, sites and all other places where work is
being undertaken wherein the number of employees, nature of
operations, and risk or hazard involved in the business, as determined by
the SOLE, require compliance with the provisions of RA 11058.

Including
a) Establishments located inside special economic zones and
other investment promotion agencies;
b) Utilities engaged in air, sea, and land transportation;
c) Industries such as mining, fishing, construction, agriculture, and
maritime;
d) Contractors and subcontractors, including those engaged in projects
of the public sector.

Excluding
a) Public sector such as the NGAs, GOCCs with original charters, GFIs,
SUCs and LGUs.

(2) Duties of Employers Workers and Other Persons [Sec. 4]

1. Every employer, contractor or subcontractor, if any, and any
person who manages, controls or supervises the work being
undertaken shall
a. Furnish the workers a place of employment free from
hazardous conditions that are causing or are likely to cause
death, illness or physical harm to workers;
b. Give complete job safety instructions or orientation to all
the workers especially to those entering the job for the first
time, including those relating to familiarization with their
work environment
c. Inform the workers of the hazards associated with their
work, health 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 emergency;
d. Use only approved devices and equipment for the
workplace;
e. Comply with OSH standards including training, medical
examination and, where necessary, provision of protective
and safety devices such as personal protective equipment
(PPE) and machine guards;
f. Allow workers and their safety and health representative to
participate actively in the process of organizing, planning,
implementing and evaluating the safety and health
 program to improve safety and health in the workplace;
and health in the workplace; and
g. Provide, where necessary, for measures to deal with
emergencies and accidents including first-aid
arrangements.

2. Every worker shall participate in ensuring compliance with OSH

standards in the workplace. The worker shall
a. make proper use of all safeguards and safety devices
furnished for the worker's protection and that of others;
b. observe instructions to prevent accidents or imminent
danger situations in the workplace
c. observe the prescribed steps to be taken in cases of
emergency; and
d. report to the supervisor any work hazard that may be
discovered in the workplace.
3. It shall be the duty of any person, including the builder or
contractor who visits, builds, renovates or installs devices or
conducts business in any establishment or workplace, to comply
with the provisions of this Act and all other regulations issued by
the SOLE

4. Whether two (2) or more undertakings are engaged in activities

simultaneously in one (1) workplace, it shall be the duty of all
engaged to collaborate in the application of OSH standards and
regulations

(3) Workers’ Right to Know [Sec. 5]

The right to safety and health at work shall be guaranteed. All workers
shall be appropriately informed by the employer about all types of
hazards in the workplace, provided access to training and education on
chemical safety, and to orientation on the data sheet of chemical safety,
electrical safety, mechanical safety, and ergonomic safety.

(4) Workers' Right to Refuse Unsafe Work [Sec. 6]

The worker has the right of refusal to work without threat or reprisal from
the employer if, as determined by the DOLE, an imminent danger
situation exists in the workplace that may result in illness, injury or death,
and corrective actions to eliminate the danger have not been
undertaken by the employer.

(5) Workers' Right to Personal Protective Equipment (PPE) [Sec. 8]

Every employer, contractor, or subcontractor, if any, shall provide his
workers, free of charge, protective equipment for their eyes, face, hands
and feet, and lifeline, safety belt or harness, gas or dust respirators or
masks, and protective shields whenever necessary by reason of the
hazardous work process or environment, chemical, radiological,
mechanical and other irritants or hazards capable of causing injury or
Page 42 of 9
 impairment in the function of any part of the body through absorption,
inhalation or physical contact. The cost of the PPE shall be part of the
safety and health program which is a separate pay item pursuant to
Section 20 of this Act.
2. Wages
a) Definitions
Wage - paid to any employee shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or
ascertained on time, task, place or commission basis, or other method of
calculating the same, which is payable by an employer to an employee under a
written or unwritten contract of employment for work done or to be done, or for
services rendered or to be rendered and include fair and reasonable value, as
determined by the SOLE, of board, lodging, or other facilities customarily furnished
by the employer to the employee. “Fair and reasonable value” shall not include any
profit to the employer or to any person affiliated with the employer.

Twin attributes of wage:

a. Cash wage;
b. Facilities.

1 Wage vs. Salary

Wage Salary

Compensation for manual Denotes a superior grade of services and implies a

labor, skilled or unskilled. position or office.

Paid at stated times and

measured by the day, week,
month, or season.

Indicates considerable pay Suggestive of a larger and more important service.

for a lower and less
responsible character of
employment.

Not subject to execution or Subject to execution or attachment.

attachment except for debts
incurred for food, shelter,
clothing and medical
attendance.
 2 Facilities vs. Supplements
Facilities – include articles or services for the benefit of the
employee or his family, but exclude tools of the trade or articles
for the benefit of the employer or necessary to the conduct of the
employer’s business. They are items or expenses necessary for the
laborer’s family and his family’s existence and subsistence.

Note: Facilities are deductible from the wages of the employees, if

the following requisites occurs:
a. Customarily furnished by the trade;

b. Deductible facilities must be voluntarily accepted in writing

by the employee;

Note: If not accepted by the employee, then the same shall be

adhered to, if the employer compels the employee to accept such
facilities, then that would tantamount to a violation of the labor’s
free disposal of his wage.

c. Facilities must be charged at fair and reasonable.

Note: If those items so furnished by the employer will inure to the

benefit or convenience of the employee, then it shall be
denominated as “facilities.”
Note: Facilities exclude profit, therefore, the actual cost to the
employer of the board, lodging, or other facilities customarily
furnished by him to his employees, shall be paid by the
employees without any profit by the employer to the aforesaid
facilities.

c. Supplements – are extra remunerations or benefits given to an

employee such as vacation leave pay, overtime pay in excess of
the legal rate, profit-sharing benefits, sick pension, retirement
and death benefits, family allowances, Christmas bonus, war-risk
or cost of living bonuses or other bonuses other than those paid
as reward for extra output or time spent on the jobs. Since they
are not considered as part of wages, their value cannot be
deducted from the cash wage of an employee.

Note: What is determinative as to whether the articles or services

are to be construed as either facilities or supplements depends
solely on its “purpose.” If the free meals were provided for the
maintenance of the health and efficiency of the crew personnel
during the voyage, such will render the free meals not as facilities
but rather supplements, and therefore, is not deductible from the
employees’ wage.

Facilities Supplements
Page 44 of 9
Are those articles and services, Benefits given to employees, and not considered as
provided for the benefit of the wage.
employee including its family
and forms part of wage.

Deductible from the wage of the Not deductible from the wage.
employee.

b) Principles
(1) No Work, No Pay
General Rule: If the worker does not work, he earns no pay
Exception: Worker is still entitled to be paid if:
a. Employer unduly prevented him from working despite his
ableness, willingness and readiness;
b. He is legally locked out or illegally suspended or
dismissed;
c. He is illegally prevented from working.

In Odango v. NLRC, SC held that no work no pay also applies to monthly-

paid workers, if absent without pay

Deductions for unpaid absences are allowed. An employer will not be

liable for violation of the prohibition against wage deduction for
absences or tardiness incurred by the employee.

(2) Equal Pay for Equal Work

Persons who work with substantially equal qualifications, skill, effort and
responsibility, under similar conditions, should be paid similar salaries.
This rule applies to the School, its "international character"
notwithstanding.

The School cannot invoke the need to entice foreign-hires to leave their
domicile to rationalize the distinction in salary rates without violating the
principle of equal work for equal pay

Receiving salaries less than their counterparts hired abroad, the local-
hires of private respondent schools, mostly Filipinos, suffered
discrimination. That the local-hires are paid more than their colleagues in
other schools is, of course, beside the point. The point is that employees
should be given equal pay for work of equal value.

(3) Fair Wage for Fair Work

Since the affected employees are daily-paid employees, they should be
given their wages and corresponding premiums for Saturday work only if
they are permitted to suffer to work.

The age-old rule governing the relation between labor and capital, or
management and employee, of a "fair day's wage for a fair day's labor"
remains the basic factor in determining employees' wages.
1. If there is no work performed by the employee, there can be no
wage.
2. In cases where the employee's failure to work was occasioned
neither by his abandonment nor by termination, the burden of
economic loss is not rightfully shifted to the employer; each party
must bear his own loss.
3. In other words, where the employee is willing and able to work
and is not illegally prevented from doing so, no wage is due to
him.

With respect to backwages, the principle of a "fair day's wage for a fair
day's labor" remains as the basic factor in determining the award thereof.
If there is no work performed by the employee there can be no wage or
pay unless, of course, the laborer was able, willing and ready to work but
was illegally locked out, suspended or dismissed or otherwise illegally
prevented from working. While it was found that respondents expressed
their intention to report back to work, the latter exception cannot apply
in this case. In Philippine Marine Officers' Guild v. Compañia Maritima, as
affirmed Philippine Diamond Hotel and Resort v. Manila Diamond Hotel
Employees Union, the Court stressed that for this exception to apply, it is
required that the strike be legal, a situation that does not obtain in the
case at bar.

Under the circumstances, respondents' reinstatement without

backwages suffices for the appropriate relief.

In Escario v. NLRC, the Court held:

Conformably with the long honored principle of a fair day's wage for a fair
day's labor, employees dismissed for joining an illegal strike are NOT
entitled to backwages for the period of the strike even if they are
reinstated by virtue of their being merely members of the striking union
who did not commit any illegal act during the strike.

In Philippine Diamond Hotel & Resort, Inc. v. Manila Diamond Hotel

Employees Union, the Court laid down the exceptions to this rule:
1. when the employees were illegally locked to thus compel
them to stage a strike;
2. when the employer is guilty of the grossest form of ULP;
3. when the employer committed discrimination in the
rehiring of strikers refusing to readmit those against whom
there were pending criminal cases while admitting non-
strikers who were also criminally charged in court; or
Page 46 of 9
 4. when the workers who staged a voluntary ULP strike
offered to return to work unconditionally but the employee
refused to reinstate them.

(4) Non-Diminution of Benefits

Benefits given to employees cannot be taken back or reduced
unilaterally by the employer because the benefit has become part of the
employee contract.

Applicable if the following conditions are met:

a. The grant of the benefit is based on an express policy or has
ripen into practice over a longer period of time;
b. Practice is consistent and deliberate;
c. It is not due to error in the construction or application of a
doubtful or difficult question of law or provision in the CBA;
d. The diminution is done unilaterally by the employer

Company practice is a custom or habit shown by an employer’s

repeated, habitual customary or succession of acts of similar kind by
reason of which, it gains the status of a company policy that can no
longer be disturbed or withdrawn

The rule on company practice is generally used with respect to grant of

additional benefits to employees, not to issues involving diminution of
benefits.
Home Credit Mutual Building v. Prudente 2020
The non-diminution rule applies only if the benefits is based on an
express policy, a written contract, or has ripened into a practice.

Here, Rollette's claim that the car plan was part of her hiring package
was unsubstantiated. Admittedly, Home Credit has no existing car plan
at the time Rollette was hired. Rollette's employment contract does not
even contain any express provision on her entitlement to a service
vehicle at full company cost.

Home Credit's act of giving service vehicles to Rollette has been a

company practice - but not as to the non-participation aspect. There was
no substantial evidence to prove that the car plan at full company cost
had ripened into company practice. Notably, the only time Rollette was
given a service vehicle fully paid for by the company was for her first car.
For the second vehicle, the company already imposed a maximum limit
but Rollette never questioned this. She willingly paid for the equity in
excess of said limit. Thus, the element of consistency and deliberateness
are not present.

Philippine National Construction Corp. v. NLRC 2021

PNCC did NOT violate the non-diminution rule when it desisted from
granting mid-year bonus to its employees starting 2013. True, between
1992 and 2011, PNCC invariably granted this benefit to its employees and
 never before revoked this grant in strict adherence to the non-
diminution rule under Article 100 of the Labor Code.

Nonetheless, with the subsequent enactment of RA 10149 in 2011, PNCC

may no longer grant this benefit without first securing the requisite
authority from the President. As borne by the records, PNCC failed to
obtain this authority in view of the position taken by the GCG not to
forward the request to the President.

hilippine Journalists Inc. v. Journal Employees Union 2013

The argument of petitioner that the grant of the funeral and
bereavement benefit was not voluntary but resulted from its mistaken
interpretation as to who was considered a legal dependent of a regular
employee deserves scant consideration. To be sure, NO doubtful or
difficult question of law was involved in as much as the several cogent
statutes existing at the time the CBA was entered into already defined
who were qualified as the legal dependents of another.

It is further worthy to note that petitioner granted claims for funeral and
bereavement aid as early as 1999, then issued a memorandum in 2000 to
correct its erroneous interpretation of legal dependent under the CBA.
This notwithstanding, the 2001-2004 CBA still contained the same
provision granting funeral or bereavement aid in case of the death of a
legal dependent of a regular employee without differentiating the legal
dependents according to the employee’s civil status as married or single.
The continuity in the grant of the funeral and bereavement aid to regular
employees for the death of their legal dependents has undoubtedly
ripened into a company policy.

c) Payment of Wages
General Rule: As a general rule, wages shall be paid in legal tender. (IRR ofLC,
Book m, Rule vm, sec. 1)

NO employer shall pay the wages Of an employee by means Of:

1. Promissory notes;
2. Vouchers;
3. Coupons;
4. Tokens;
5. Tickets;
6. Chits; or
7. Any Object Other than legal tender.
8.
NOTE: This prohibition applies even When expressly requested by the
employee.

Exception::
Payment Of wages by check or money order shall be allowed if:
1. It is customary on the date Of the effectivity Of the Code;

Page 48 of 9
 2. Necessary because Of special circ umstances as specified in the
regulation issued by the SLE; or Stipulated in the CBA; (LC, Art 102)
3. Where the following conditions are met:
a. There is a bank or other facility for encashment within a radius Of
one (I) kilometer from the workplace;
b. The employer or any Of his agents or representatives does not
receive any pecuniary benefit directly or indirectly from the
arrangement;
c. The employees are given reasonable time during banking hours to
withdraw their wages from the bank which time shall be
considered as compensable hours worked if done during working
hours; and
d. The payment by check is with the written consent Of the
employees concerned if there is no collective agreement
authorizing the payment Of wages by bank checks. (IRR, Book m,
Rule vm, sec 2)

TIme of Payment
General rule: Wages shall be paid:
1. At least once every two (2) weeks; or,
2. Twice a month at intervals not exceeding sixteen (16) days.

Exception:
1. On account Of force majeure or circumstances beyond the employer's
control, payment shall be made immediately after such force majeure or
circumstances have ceased;
2. If engaged to perform a task which cannot be completed in two (2)
weeks shall be subject to the following conditions, in the absence Of A
CBA or arbitration award:
a. That payments are made at intervals not exceeding sixteen (16)
days, in proportion to the amount Of work completed;
b. That final settlement is made upon completion Of the work. (LC
Art 103)

Place of Payment
General Rule: At or near the place Of undertaking. (LC, Art. 104)

Exception: Payment in a place Other than the workplace shall be permissible

only under the following circumstances:

I. When payment cannot be effected at or near the place Of work by

reason Of the deterioration Of peace and order conditions, or by reason
Of actual or impending emergencies caused by fire, flood, epidemic or
other calamity rendering payment thereat impossible;
2. When the employer provides free transportation to the employees
back and forth; and,
 3. Under any Other analogous circumstances; Provided, that the
time spent by the employees in collecting their wages shall be
considered as compensable hours worked.

NOTE: NO employer shall pay his employees in any bar, night or day club,
drinking establishment, massage clinic, dance hall, or Other similar
places or in places where games are played with stakes Of money or
things representing money except in the case Of persons employed in
said places. (IRR OfLC Book m, Rule vm, sec. 4)

Requisites of Payment Through Banks

I. Shall be made upon written permission Of the majority Of the
employees or workers concerned;
2. With twenty-five (25) or more employees; and,
3. Located Within one (I) kilometer radius to a commercial, savings
or rural bank. (RA 6727, sec. 7)
NOTE: Payment shall be made Within the period Of payment Of wages
fixed by the Labor Code.

Requisites of Payment Through ATM

1. The ATM system Of payment is with the written consent Of the
employees concerned;
2. The employees are given reasonable time to withdraw their wages
from the bank facility which time, if done during working hours,
shall be considered compensable hours worked;
3. The system shall allow workers to receive their wages within the
period or frequency and in the amount prescribed under the
Labor Code, as amended;
4. There is a bank or ATM facility Within radius Of one (I) kilometer to
the place Of work;
5. Upon request Of the concerned Ees. the Er shall issue a record Of
payment Of wages, benefits and deductions for a particular
period;
6. There shall be an additional expense and no diminution Of
benefits and privileges as a result Of the ATM System Of payment;
and
7. The employer shall assume responsibility in case the wage
protection provisions Of law and regulations are not complied
with under the arrangement. (DOLE Labor Advisory, Series Of1996)

Direct Payment of Wages

General Rule: Wages shall be paid directly to the workers to who they are due.
Exception:
1. Payment through another person may be made in cases Of force
majeure which renders the payment impossible, provided that

Page 50 of 9
 such person is under written authority given by the worker for the
purpose;
2. Where the employer is authorized in writing by the employee to
pay his wages to a member Of his family;
3. Where payment to another person Of any part Of the employee's
wages is authorized by existing law, including payments for the
insurance premiums Of the employee and union dues where the
right to check-off has been recognized by the employer in
accordance with a collective agreement or authorized in writing
by the individual employees concerned; (IRR, Book Ill, Rule vm, sec
5; Art 105) or
4. In case Of death Of the employee, the employer may pay the
wages to the heirs Without the necessity Of intestate proceedings.
When the heirs are Of age, they shall:
a. Execute an affidavit attesting to their relationship to the
deceased and the fact that they are his heirs to the
exclusion Of all Other persons.
b. In case any Of the heirs is a minor, such affidavit shall be
executed in his behalf by his natural guardian or next Of kin.
c. Upon presentation Of the affidavit to the employer, he shall
make payment to the heirs as representative Of the
Secretary Of Labor and Employment.

d) Prohibitions Regarding Wages

I. Non-Interference in Disposal Of Wages
Employer shall not limit or interfere With the freedom Of any employee to
dispose Of his wages. He shall not force, compel or Oblige his Ees to purchase
merchandise, commodities or other property from any other person. or
otherwise make use Of any store services Of such employer or any Other
person. (LC Art. 112)

Civil Code Provisions on Non-interference in

Art. 1705. The laborers wages shall be paid in legal currency.
Art. 1706. Withholding Of the wages, except for a debt due, shall not be made
by the employer.
Art. 1707. The laborer's wages shall he a lien on the goods manufactured or the
work done.
Art. 1708. The laborer's wages shall not be subject to execution or attachment,
except for debts incurred for food, shelter, clothing and medical attendance.
Art. 1709, The employer shall neither seize nor retain any tool or Other articles
belonging to the laborer.

Other prohibitions
1. Kickbacks — induce a worker to give up any part of his wages by force,
stealth, intimidation, threat;
2. Deduction to ensure employment (Art 117);
3. Retaliate against an employee who has
a. Filed any complaint, or
b. Instituted proceedings, or
 c. Has testified or is about to testify in said proceedings by;
i. Refusing to pay the wages; or
ii. Reducing such wages; or
iii. Discharging him from employment; or
iv. Discriminate against him in any manner. (Art 118)
4. False reporting (Art 119)

2. Wage Deduction
General Rule: NO employer, in his own behalf or on behalf Of any person, shall
make any deduction from the wages Of his employees. (LC Art 113)

Exception::
1. Where the worker is insured With his consent by the employer; and,
2. For union dues, in cases where the right Of the worker or his union to
check Off has been recognized by the employer or authorized in
writing by the individual worker concerned.

Special assessments may be validly checked-off provided that there is an

individual written authorization duly signed by every employee.

3. In cases where the employer is authorized by law or regulations issued

by the SLE:
a. Deductions for value Of meals and facilities freely agreed upon;
(Azucena, Vol. I, 2016, p. 411)
b. In case where the employee is indebted to the employer where
such indebtedness has become due and demandable; (NCC, Art.
1706)
c. In court awards, wages may be subject Of execution or
attachment, but only for debts incurred for food, shelter, clothing,
and medical attendance; (NCC, Art. 1703)
d. Taxes withheld pursuant to the Tax Code;
e. Salary deduction Of a member Of a legally established
cooperative; (RA 6938; sec. 59)
f. Deductions for SSS, PhilHealth and Pag-ibig premiums;
g. Deductions for loss or damage; (LC Art 114)
i. EE is clearly responsible for the loss or damage;
ii. He is given reasonable opportunity to show cause why
deductions should not be made;
iii. Deduction is fair and reasonable and should not exceed the
actual loss or damage; and
iv. Does not exceed 20% of EE’s wages in a week.
h. Deductions made With the written authorization Of the Ee for
payment to a third person; (IRR Of LC Book Ill, Rule vm, sec 13)
i. Deductions as disciplinary measures for habitual tardiness;
(Opinion dated March 10, 1975 Ofthe LaborSecretary)

Page 52 of 9
 j. Agency fees. (LC Art 259 from non-union members who accept
the benefits under the CBA negotiated by the bargaining union.
Does not need authorization from concerned member;

The law prohibits the employer from making deductions from the
wages of an employee. The evil sought to be prevented is to
forestall the commission Of unwarranted practices Of employers
by making unnecessary deductions without employee's
knowledge or authorization. (Galvadores v. Trajano, 144 SCRA 138)

3. Prohibitions against Deposit Requirement

General Rule: While deductions from the employees' wages may be
made for cash bonds or deposits, the employer, however, is not allowed
to unilaterally impose upon its employees the giving Of cash bonds or
deposits.
Exception: If the employer proved and established that it falls under any
Of The following:
1. That it is engaged in such trades, occupations or business were
the practice Of making deductions or requiring deposits is a
recognized one; or
2. That the cash bond or deposit is necessary or desirable as
determined by the DOLE Secretary in appropriate rules and
regulations
In the case Of Nina Jewelry v. Montecillo (GR. NO. 188169, Nov. 28,
2011), the court ruled that the petitioners should first establish that
the making Of deductions from the salaries is authorized by law,
or regulations issued by the Secretary Of Labor. Further, the
posting Of cash bonds should be proven as a recognized practice
in the jewelry manufacturing business, or alternatively, the
petitioners should seek for the determination by the Secretary Of
Labor through the issuance Of appropriate rules and regulations
that the policy the former seeks to implement is necessary or
desirable in the conduct Of business.

4. Prohibition on withholding wages

It is unlawful for any person, whether employer or not, directly or
indirectly, to withhold any amount from the wages Of works. (LC Art. 116)

Although management prerogative refers to the right to regulate all

aspects Of employment, it cannot be understood to include the right to
temporarily withhold salary/wages without the consent Of the employer.
TO sanction such an interpretation v.'0uld be contrary to Art 166 Of the
Labor Code. (SHS Perforated Materials, Inc. v. Diaz, GR Na 185814, Oct 13,
2010)

As an exception, employers usually withhold the release Of the last salary

and benefits Of terminated or resigning employees prior to or pending
their compliance with certain clearance procedure.
 Clearance procedure are instituted to ensure that the properties, real or
personal, belonging to the employer but are in the possession Of the
separated employee, are returned to the employer before the
employee's departure. (Milan v. NLRC and solid Mil'S, Inc, GR. NO. 202961,
Feb. 4, 2015)

Other Prohibitions
1. Withholding Of wages from a worker through inducement, force,
stealth, intimidation, threat or by any Other means without his
consent; (LC Art 116)
2. TO make deductions from wages for the benefit Of the Er or his
representative as consideration Of a promise Of Employment or
retention in employment; (LC Art 117)
3. Refusal by Er to pay or reduce wages or benefits in discrimination
Of any Ee who has filed any comp laint or instituted any
proceedings under the code or has testified or about to testify; (LC
Art. 118) or
4. Unlawful for any person to make any statement, report, or record
filed or kept pursuant to the Code knowing such statement, report
or record to be false in any material aspect.

e) Wage Distortion
(1) Concept
A situation where an increase in prescribed wage results in the
elimination or severe contraction Of intentional quantitative differences
in wage or salary rates between and among employee-groups in an
establishment as to effectively obliterate the distinctions embodied in
such wage Structure based on skills, length Of service or other logical
bases Of differentiation. (LC Art. 124)

It is the disappearance or virtual disappearance Of pay differentials

between lower and higher positions in an enterprise because Of
compliance with a wage order. (PI. Manufacturing v. P.I. Manufacturing
Supervisors and Foreman, GR. NO. 167217, Feb. 2008)

NOTE: Wage distortion presupposes an increase in the compensation of

the lower pay class in an Office hierarchy without a corresponding raise
for high level employees in the same region Of the country, resulting in
the elimination or severe diminution Of the distinction between the two
groups or classes. (Prubankers Asociation v. Prudential Bank & Trust
Company, GR. NO. 131247, Jan. 25, 1999)

Elements

Page 54 of 9
 1. An existing hierarchy Of positions With corresponding salary rates;
2. A significant change or increase in the salary rate Of a lower pay
class without a corresponding increase in the salary rate Of a
higher one;
3. The elimination Of the distinction between the 2 groups or classes;
and
4. The WD exists in the same region Of the country. (Alliance Trade
Unions v. NLRC, G.R. No. 140689, Feb. 17, 2004)

In mandating an adjustment, the law did not require that there be

an elimination or total abrogation Of quantitative wage or salary
differences; a severe contraction is enough. (Metrobank V. NLRC,
GR Na 102636, sept 10, 1993)

Wage distortion does not arise when a wage order gives

employees in one branch Of a bank higher compensation than
that given to their counterparts in Other regions occupying the
same pay scale who are not covered by said wage order. In short,
the implementation Of wage orders in one region but not in
Others does not in itself necessarily result in wage distortion.

Possible cause
1.Government decreed increase through Wage Orders;
2. Merger of establishments;
3. Increase granted by employers;
4. Passage of RA 6727
Where a significant change occurs at the lowest level Of positions
in terms of basic wage without a corresponding change in the
other level in the hierarchy Of positions, negating as a result
thereof the distinction between one level Of position from the
next higher level, and resulting in a parity between the lowest
level and the next higher level or rank, between new entrants and
Old hires, there exists a wage distortion.

Cases not considered as Wage Distortion

1.Where the hierarchy Of positions based on skills, length Of service
and Other logical bases Of differentiation was preserved;
(Prubankers Association v. Prudential Bank
2. A disparity in wages between employees holding similar positions
but in different regions;
3. Where the disparity was simply due to the fact that the employees
had been hired on different dates and were thus receiving
different salaries; (Manila Mandarin Employees Union v. NLRC. GR.
No. 108556, Nov. 19, 1996)
4. 4. That an employee was initially hired at a position level
carrying a hiring rate higher than the rates Of others;
5. That an employee failed to meet the cut-off date in the grant Of
yearly CBA increase; or
6. That the employee had been promoted While the others were not.
 Q: Bankard, Inc. approved a New Salary Scale Which increased the hiring rates Of
new employees. The Bankard Employees Union pressed the company for the increase
in the salary Of its Old, regular employees. The company refused to do so.

The union filed a Notice of Strike on the ground Of discrimination for it claimed that
a wage distortion exists and the company refused to negotiate to correct the
distortions. Is there a wage distortion brought about by the New Salary Scale?

A: NO. The union cannot legally obligate Bankard to correct the alleged "wage distortion" the
increase in the wages and salaries Of the newly hired was not due to a prescribed law or
wage order. If the compulsory mandate under Art. 124 to correct wage distortion is applied
to voluntary and unilateral increases by the employer in fixing hiring rates which is
inherently a business judgment prerogative, then the hands Of the employer would be
completely tied even in cases where an increase wages Of a particular group is justified due
to re-evaluation Of the high productivity Of a particular group or the need to increase the
competitiveness Of Bankard's hiring rate.

An employer would be discouraged from adjusting the salary rates Of a particular group Of
employees for fear that it would result to a demand by all employees for a similar increase,
especially if the financial conditions Of the business cannot address an across-the-board
increase. (Bankard Employees Union-WTO' v. NLRC, GR. 140689, Feb 17, 2004)

Settlement of Wage Distortion

Organized Establishment (W/ Union) Unorganized Establishment (W/O Union)

The Er and the union shall negotiate to The Er and the workers shalI endeavor to
correct distortion. correct the distortion.

Any dispute shall be resolved through a Any dispute shall be settled through the
grievance procedure under the CBA NCMB.
If it remains unresolved, it shall be dealt with If it remains unresolved within 10 days it
through voluntary arbitration shall be referred to NLRC
The dispute will be resolved within 10 days The NLRC shall conduct continuous
from the time the dispute was referred to hearings and decide the dispute within 20
voluntary arbitration days from the time the same was referred.

The pendency Of the dispute arising from a wage distortion shall not in any
way delay the applicability Of any wage increase prescribed pursuant to the
provisions of law or Wage order. (IRR ofRA 6727, Chapter m, sec. 7)

Page 56 of 9
 NOTE: Correction Of wage distortion may be done by re-establishing a
substantial or significant gap (not precisely the same amount) between the
wage rates Of the differing classes Of Ees. (Azucena, Vol. I. 2016)

Wage Distortion is non-strikeable. (I/aw at Buklod ng Manggagawa v. NLRC, GR.

NO. 91980, June 27, 1991) It is neither a deadlock in collective bargaining nor an
ULP.

f) Minimum Wage Law

The minimum wage rates prescribed by law shall be the basic cash wages
without deduction therefrom of whatever benefits supplements or allowances
which the employees enjoy free of charge aside from the basic pay.

Basis - Public policy to promote productivity-improvement and gain-sharing

measures to ensure a decent standard of living for workers and their families, to
guarantee the right of labor to its just share in the fruits of production, to
enhance employment generation in the countryside through industry
dispersal, to allow business and industry reasonable returns on investment,
expansion and growth, to affirm labor as primary social economic force, to
ensure that wages are not distributed unevenly, and to subserve social justice.

Regional Minimum Wage Rates. — The lowest basic wage rates that an
employer can pay his workers, as fixed by the Regional Tripartite Wages and
Productivity Boards (RTWPB) and which shall not be lower than the applicable
statutory minimum wage rates.
1. Includes COLA as fixed by RTWPB.
2. Excludes other wage-related benefits
Standards for wage rate determination:
a. Demand for living wages;
b. Wage adjustment vis-à-vis consumer-price or cost-of-living index;
c. Cost of living and changes or increases therein;
d. Need of workers and families;
e. Need to induce industries to invest in the countryside;
f. Improvements in standards of living;
g. Prevailing wage levels;
h. Fair return of capital invested and capacity to pay employees;
i. Effects on employment generation and family income;
j. Equitable distribution of income and wealth along the imperatives of
economic and social development.

Two methods in determining wages:

a. Floor-wage method – involves the fixing of a determinate amount
that would be added to the prevailing statutory minimum wage.

b. Salary-ceiling method – involves a wage adjustment applied to

employees receiving a certain denominated salary ceiling.
 Workers already being paid more than the existing minimum wage are
also to be given wage increase.

Minimum wage non-negotiable; non waivable:

Minimum wage fixed by law is mandatory.
What is the liability of the employer, who refused to pay the increase in the
salary wage. There are actually two liabilities, namely:
a. Double indemnity – which provides that the failure to pay the aforesaid
increase, shall be doubled.
b. Fine.

Payment by hours worked. — Once an agreed period of work is completed,

compensation is earned regardless of the result.
1. Daily-paid employees are paid on the days actually worked except
unworked regular holidays when they are paid their basic wage if they
are present or a leave with pay on the working day preceding the regular
holiday
2. Monthly-paid employees are paid every day of the month, including
unworked days

Payment by results. — All workers paid by result, including those who are paid
on piecework, takay, pakyaw or task basis, shall receive not less than the
prescribed wage rates per eight (8) hours of work a day, or a proportion thereof
for working less than eight (8) hours
Classes of workers paid by results:
a. Those whose time and performance are supervised by the employer;
b. Those whose time and performance are unsupervised.

Workers paid by result are those whose pay is calculated in terms of the quality
of their work output which include “pakyaw” work and other non-time work.

It includes pakyaw, piecework, or task basis.

a. Pakyaw or task basis, is the non-consideration of the time spent in
working. In task basis, the emphasis is on the task itself, in the sense that
payment is reckoned in terms of completion of work not in terms of the
number of hours spent in the completion of work.

Note: They shall not receive less than the prescribed wage rates per eight hours
of work a day, or a proportion thereof for working less than eight hours.

Categories of employees paid by results:

a. Those whose time and performance are supervised by the employer;
* Piece rate workers if he performs his work in the company premises.
b. Those whose time and performance are not supervised by the
employer.
* Pakyao;
* Takao.

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 Piece-rate vs Task workers:
Piece-rate are paid for every piece of work, regardless of the time spent. While,
task workers are paid in terms of completion of the work.

Other Wage Rates

1. Of apprentices or learners shall be 75% of the statutory minimum wage.
2. Of PWDs, 100% of the applicable minimum wage.

Labor Code on Wages exemptions:

a. Farm tenancy or leasehold;
b. Domestic helpers;
c. Persons in the personal service of another;
d. Home workers engaged in needlework;
e. Workers in establishments registered with National Cottage Industries
and Development authority, provided such workers performed their work at
home;
f. Workers on cooperatives.

Pablico et al. v. Cerro 2019

In order to be exempted under the Wage Rationalization Act, two elements
must concur —
first, it must be shown that the establishment is regularly employing not
more than ten (10) workers, and
second, that the establishment had applied for and was granted
exemption by the appropriate Regional Board..

WON petitioner is exempt from the Minimum Wage Law.

NO. As the petitioner failed to apply for an exemption, and it is undisputed that
the respondents are MPRB's employees and are paid less than the prescribed
minimum wage, the petitioner's liability for wage differential cannot be denied.
Petitioner is employing more than ten (10) employees in his establishment. To
be sure, employment status is determined by the four-fold test, and the
attendant circumstances of each case.

g) Holiday Pay
Article 94. Right to Holiday Pay – Every worker shall be paid his daily wage
during regular holiday except “in retail and service establishments regularly
employing less than 10 workers.”

Employer may require an employee to work on any holiday but such employee
shall be paid in a compensation equivalent to twice his regular rate.

Legal holiday is a day designated or set apart by the legislature, for a purpose
within the meaning of the term holiday, in order to commemorate an
important event.

Note: In Regular holiday the employee is entitled, even if he did not work = 100%
In Special holiday the employee is not entitled if unworked.
 Employee work on RH = 200% of BW
Special holidays if worked = 130%
SP and RD = 150%
RH = 200% if OT = 260%
RH and RD = 260% if OT = 338%
DH = 400%

Effects of absences on holiday pay; successive regular holiday:

a. Absent and is on leave with pay, entitled to holiday pay;
b. Absent without pay on the day immediately preceding the RH, he is
not entitled to pay;
c. If the immediately preceding holiday is a non-working day or the
scheduled rest day of an employee, he is not considered to be on leave
on that day, in which he is entitled to holiday pau, if the employee should
work on the day immediately preceding the non-working holiday or rest
day;
d. 2 successive holidays like Holy Thursday and Good Friday, an employee
is not entitled to holiday for both holidays if he is absent from work
without pay on the day immediately preceding the first RH, But if he
works on the first holiday, he is entitled to holiday pay on the second day.

Effects of business closure on holiday pay:

a. If temporary or periodic shutdown the RH falling within such period
shall be compensated;
b. If due to business reverses authorized by the SOLE, not entitled.
Holiday pay of certain types of employees:
a. Private school teachers, including faculty members, not paid for RH
during semestral brake. However, they shall be paid for RH during
Christmas season;
b. Faculty members paid per lecture are not entitled to holiday pay,
because they are paid only for work actually done. They should not
expect payment for unworked days;
c. Paid by results or output, or piecework, his holiday pay shall not be less
than his average daily earnings for the last 7 actual working days
preceding the regular holiday; provided however, that in no case shall
the holiday pay be less than the applicable statutory minimum wage;
d. Seasonal workers not paid during off-season for RH, when they are not
at work;
e. Workers who have no regular working days shall be entitled to the
benefits.

Asian Transmission Corp v. CA

Holiday pay is a legislated benefit enacted as part of the Constitutional
imperative that the State shall afford protection to labor. Its purpose is
not merely "to prevent diminution of the monthly income of the workers
on account of work interruptions. In other words, although the worker is
forced to take a rest, he earns what he should earn, that is, his holiday
pay." It is also intended to enable the worker to participate in the national

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 celebrations held during the days identified as with great historical and
cultural significance.

Since a worker is entitled to the enjoyment of ten paid regular holidays,

the fact that two holidays fall on the same date should not operate to
reduce to nine the ten holiday pay benefits a worker is entitled to receive

h) 13th Month Pay

1) Resigned or separated employees to be paid pro rata;
2) Non-payment shall be treated as money claims.
3) Employees paid a fixed or guaranteed wage plus commission are entitled
based on their total earnings for the calendar year.
4) Basic salary means not the amount actually received by an employee, but 1/12
of their standard monthly wage multiplied by their length of service within a
given calendar year.

Voluntary and contractual bonuses equivalent to 13th month pay:

Voluntary and contractual bonuses are credited for the purpose of determining
the liability for the 13th month pay.
● If the employer is already paying a 13th month pay or its equivalent,
whether out of pure generosity or on the basis of a binding agreement is
therefore exempted from paying the same.
● The term “its equivalent” includes Christmas bonus, mid-year bonus,
profit-sharing payments and other cash bonuses amounting to not “less
than 1/12th of the basic salary”, but it shall not include cash and stock
dividend, cost of living allowances, as well as non-monetary benefits.

Note: Benefits in the form of food, free electricity or year-end rewards for loyalty
and services are not proper substitute for 13th month pay.

Who are entitled to 13th month pay: Not taxable.

a. All rank and file employees;
Note: Irrespective of their position, designation or employment status,
and irrespective of the method by which their methods are paid.
Provided, they have worked for at least one month during the calendar
year.
b. Extra;
c. Casual;
d. Seasonal employees;
e. Piece rate basis;
f. Employee who receives regular commission;
g. Government employees working as part-time in private sector;
h. Private school teachers.

Note: All of which must have worked for at least one month during the calendar
year.
Note: Subsequent dismissal for cause without violating his property rights shall
not amount to the forfeiture of his 13th month pay.

Note: Dismissed or resigned employee before the payment of 13th month pay is
due, shall be entitled to the same. His monetary benefit shall be computed in
proportion to the length of time he worked during the year, reckoned from the
time he started to work during the calendar year up to his resignation or
termination or 1/12 of his total basic pay earned during the period.

Employees not covered by the 13th month pay:

a. Government and any of its political subdivisions, including GOCC’s,
except those corporations operating essentially as private subsidiaries of
the government;
b. Employers already paying 13th month pay or its equivalent;
c. Household employees and persons in the personal services of another
in relation to such workers;
d. Employees paid on purely commission basis, boundary, or task basis,
and those are paid a fixed amount for performing specific work,
irrespective of the time consumed in the performance thereof;
e. Seafarers;
f. Managerial employees.

R&E Transport v. Latag

Since Pedro was paid according to the "boundary" system, he is not entitled to
the 13th month and the service incentive pay; hence, his retirement pay should
be computed on the sole basis of his salary.

Reyes v. NLRC
ON COMMISSIONS. The Court thus clarified that in Philippine Duplicators, the
salesmen’s commissions, comprising a predetermined percentage of the
selling price of the goods sold by each salesman, were properly included in the
term basic salary for purposes of computing the 13th month pay.

Sales commissions which are effectively an integral portion of the basic salary
structure of an employee, shall be included in determining the retirement pay.
In fine, the commissions which petitioner received were not part of his salary
structure but were profit-sharing payments and had no clear, direct or
necessary relation to the amount of work he actually performed. The collection
made by the salesmen from the sale transactions was the profit of private
respondent from which petitioner had a share in the form of a commission.

Letran Calamba Faculty & Employees Association v. NLRC

ON OVERLOAD PAY. Overload pay should be excluded from the computation of
the 13th-month pay. In the same manner that payment for overtime work and
work performed during special holidays is considered as additional
compensation apart and distinct from an employee's regular wage or basic
salary, an overload pay, owing to its very nature and definition may not be

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 considered as part of a teacher's regular or basic salary, because it is being paid
for additional work performed in excess of the regular teaching load.

Verily, overload pay may not be included as basis for determining a teacher's
13th-month pay

3. Leaves
a) Service Incentive Leave
Article 95. Service incentive leave – Every employee who have rendered one
year of service, shall be entitled to service incentive leave with pay.
Excluding:
a. If the employee is already given the vacation leave with pay of 5 days;
b. GOCC with original charters;
c. Persons in the personal service of another;
d. Domestic worker;
e. Piece-rate workers.
f. All other employees excluded by the labor code.
g. Managerial Ees, if they meet all Of the following conditions:
a. Their primary duty is to manage the establishment in which
they are employed or of a department or supervision
thereof
b. They customarily and regularly direct the work of two or
more EEs therein; and
c. They have authority to hire or fire other EEs of lower rank, or
their suggestions and recommendations as to hiring, firing
and promotion, or any other change of status of other EEs
are given particular weight.
h. Filed personnel and those whose time and performance is
unsupervised by the Er, including those who are engaged in:
a. task or contract basis
b. purely commission basis
c. or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance
thereof
i. Those employed in establishments regularly employing less than 10 EEs

EEs engaged on task or contract basis paid on purely commission basis

are not automatically exempted from the grant of SIL unless they fall
under the classification of field personnel

If required to be at a specific places at specific times. EEs including

drivers cannot be said to be filed personnel despite the fact that they are
performing work away from the principle office of the EE, as such they
are entitled to SIL.

Teachers of Private Schools on Contract basis are entitled to SIL

A part-time worker is entitled to service incentive leave whether the

service within 12 months is continuous or broken or where the working
 days in the employment contract as a matter Of practice or policy is less
than 12 months. The availment and commutation Of the same can be
proportionate to the daily work rendered and the regular daily salary.
(DOLE's Explanatory Bulletin on Part-time Employment, Jan. 2, 1996)

Piece-rate workers are entitled to the full benefit of the yearly 5-day
service incentive leave. Under PD 851 or the SIL Law, the exclusion from
coverage Of workers who are paid on a purely commission basis is only
with respect to field personnel. Ees engaged on task or contract basis
paid on purely commission basis are not automatically exempted from
the grant Of SIL, unless they fall under the classification Of field
personnel. (Serrano v. Severino Santos, GR. NO. 187698,Aug. 9, 2010)

Terminated EEs
Illegally dismissed Ees — entitled to SIL until actual reinstatement.
(Integrated Contractor and Plumbing Works, Inc. v.

Legally dismissed Ees — the Ee Who had not been paid SIL from the
Outset Of employment is entitled only to such pay after a year from
commencement Of service until termination Of employment or
contract. (JPL Marketing Promotions v. CA, GR. Na 151966 July 8, 2005)

It is a 5-day leave With pay for every Ee Who has rendered at least I year Of
service whether continuous or broken. (LC Art 95)

Purpose
The stipulation in the contract for the allowance Of a vacation to Ees is merely a
recognition by management and labor that a short interval Of complete rest
and relaxation from daily routine With the benefit Of full pay is essential to the
mental and physical well-being Of the workmen. (Bencio v. Joseph Bouder, Inc.,
24 so. 2d 398; A. LR 2d 352; Sunripe Coconut Products v. NLU, 97 Phil. 691)

Service for not less than 12 months, whether continuous or broken, reckoned
from the date the Ee started working including authorized absences and paid
regular holidays unless the working days in the establishment as a matter Of
practice or policy, or that provided in the employment contract is less than 12
months, in which case said period shall be considered as one year. (Sec. 3, Rule
V, Book Ill, IRR)

Commutability Of SIL to monetary equivalent

It is commutable if not used or exhausted at the end Of the year. (Sec. 5, Rule V,
IRR) It is aimed primarily at encouraging workers to work continuously and with
dedication to the company.

Exception: RA 10361 grants SIL to domestic workers. Their SIL need not be
converted to cash or carried over to succeeding years- (LC Art 139)

Basis of cash conversion

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 The basis shall be the salary rate at the date Of commutation. The availment
and commutation Of The SIL may be on a pro-rata basis.

Prescription
Applying Art. 306 Of the Labor Code in light Of the peculiarity Of SIL, the three
(3)-year prescriptive period commences, not at the end Of the year when the Ee
becomes entitled to the commutation Of his SIL, but from the time when the Er
refuses to pay its monetary equivalent after demand Of commutation or upon
termination Of the Ees' services, as the case may be. (Autobus Transport
Systems v. Bautista, GR.

b) Maternity Leave
This benefit applies to all female Ees, whether married or unmarried.

A covered female Ee, regardless Of her civil Status, who has paid at least three
(3) monthly contributions in the twelve (12)-month period immediately
preceding the semester Of her childbirth or miscarriage, is entitled to a daily
maternity benefit equivalent to 100% Of her present basic salary, allowances
and other benefits or the cash equivalent Of such benefits for 60 days, or 78
days in case Of caesarean delivery.

Being an unmarried woman is not an obstacle for the grant Of such benefits
provided she is a covered Ee. Her plight should be the moving spirit Of the law
to grant such benefits to the less fortunate. (Poquiz, 2012, p. 300)

Self-employed Members Not Entitled to Maternity Leave Benefits

Voluntary or self-employed members Of the SSS are not entitled to maternity
leave benefits because the law requires the corresponding maternity
contributions to be paid by the Ers. Voluntary or self-employed members have
no Ers to remit such contribution

However, under Circular 36-V issued by SSS, if they have qualifying

contributions using the new contribution schedule, they shall be entitled to
maternity benefits.

Conditions:
I. The Ee shall have notified her Er Of her pregnancy and the probable
date Of her childbirth which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide;
2. The full payment shall be advanced by the Er within 30 days from the
filing Of the maternity leave application;
3. Payment Of daily maternity benefits shall be a bar to the recovery Of
sickness benefits for the same compensable period Of 60 days for the
same childbirth, abortion, or miscarriage;
4. The maternity benefits provided under Sec. 14-A shall be paid only for
the first four (4) deliveries or miscarriages;
 5. The SSS shall immediately reimburse the Er Of 100% Of the amount Of
maternity benefits advanced to the Ee by the Er upon receipt Of
satisfactory proof Of such payment and legality thereof; and
6. If an Ee shouid give birth or suffer miscarriage without the required
contributions having been remitted for her by her Er to the SSS, or
without the latter having been previously notified by the Er Of the time
Of the pregnancy, the Er shall pay to the SSS damages equivalent to the
benefits which said Ee would otherwise have been entitled to.

Requirements in order that Maternity Benefits may be Claimed

1. There is childbirth, or miscarriage;
2. She has paid at least three (3) monthly contributions immediately
preceding the semester of her childbirth or miscarriage

Mat-Leave excluded in the computation of 13th month pay

Maternity-leave benefits and other benefits provided by Social Security Act are
granted to Ees in lieu of wages. Thus, the same are excluded in computing the
Ee's 13th month pay for the calendar year. (Handbook on Workers' Statutory
Monetary Benefits, p. 37)

105-Day Expanded Maternity Leave Law

1. Increased maternity leave with full pay;
a. Increased maternity leave with full pay;
b. 60 days for miscarriage or emergency termination of pregnancy
2. Option to extend maternity leave for additional thirty (30) days without
pay; Notify ER at least 45 days before end of maternity leave to avail of
extension
3. Additional 15 days with full pay for solo parents
4. Combinations of prenatal and postnatal leave; Compulsory postnatal at
least 60 days
5. Maternity leave regardless of frequency;
6. Allocation of maternity leave credits;
a. allocate up to seven (7) days of said benefits to the father, w/n the
same is married to the female worker.
b. alternate caregiver who may be a relative within the fourth
degree of consanguinity or the current partner of the female
worker sharing the same household
c. In the event the beneficiary female worker dies or is permanently
incapacitated, the balance of her maternity leave benefits shall
accrue to the father of the child or to a qualified caregiver
7. Maternity leave after termination of service;
a. occurs not more than 15 calendar days after the termination of an
employee's service, as her right thereto has already accrued
b. such period is not applicable when the employment of the
pregnant woman worker has been terminated without just cause.
8. Voluntary working arrangement during the maternity leave period

Covered

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 Under the new law, maternity leave applies to all qualified female workers in
the:
1. Public sector;
2. Private sector;
3. Informal economy;

NOTE: Informal economy refers to the selfemployed, occasionally or personally

hired, subcontracted, paid and unpaid family workers in household,
incorporated, and unincorporated enterprises, including home workers, micro-
entrepreneurs and producers, and operators Of sari-sari store [IRR ofRA 11210,
Rule 11, sec. 10)];

4. Voluntary contributors to the SSS; and National athletes.

c) Paternity Leave
It refers to the benefits granted to a married male Ee allowing him not to report
for work for 7 days but continues to earn the compensation on the condition
that his spouse has delivered a child or suffered a miscarriage for purposes Of
enabling him to effectively lend support to his wife in her period Of recovery
and/or in the nursing of the newly-born child.

In the event that the paternity leave benefit is not availed Of, said leave shall not
be convertible to cash RA 8187, sec. 7).

Every married male Ee in the private and public sectors shall be entitled to a
paternity leave Of 7 days with full pay for the first 4 deliveries Of the legitimate
spouse with whom he is cohabiting

Conditions
The male Ee is: Entitled to full pay, consisting of basic salary, for the 7 days of
paternity leave, for up to the 4 deliveries:
1. Legally married to, and is cohabiting With the woman who delivers the
baby;
2. Employed at the time Of delivery Of his child;
3. Ee Of private or public sector;
4. He has notified his Er Of the pregnancy Of his legitimate spouse and the
expected date Of such delivery

NOTE: Delivery shall include childbirth or any miscarriage.

Paternity leave may be availed after the delivery without prejudice to an

ENS policy Of allowing the Ee to avail Of the benefit before or during the
delivery, provided that the total number Of days shall not be more than
seven (7) days for each covered delivery. (Handbook on Workers'
Statutory Monetary Benefits, p. 38)

d) Solo Parent Leave (RA 8972, as amended by RA 11861)

Parental Leave — Leave benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where physical presence is
required. (Sec. 3(d), RA 8972)

Parental leave Of not more than 7 working days every year shall be granted to
any solo parent Ee Who has rendered service Of at least 6 months. It should be
noted that this is in addition to the legally mandated leaves, namely, the SIL,
the SSS sick leave, the SSS maternity leave and the paternity leave. (Sec. 8, RA
8972; Azucena, Vol. I, 2015 p. 300)

The parental leave benefit may be availed of by the solo parent employees in
the government and the private sector

The seven-day parental leave shall be non-cumulative.

In the event that the parental leave is not availed of, said leave shall not be
convertible to cash unless specifically agreed upon previously.

Persons considered as a solo parent

1. A woman who gives birth as a result of rape and other crimes against
chastity even without a final conviction of the offender; provided, that
she keeps and raises the child
2. Parent left solo or alone with the responsibility of parenthood due to:
a. Death of spouse
b. Detention or service of sentence of spouse for a criminal
conviction for at least 1 year (w/n final judgement)
c. Physical and or mental incapacity of spouse as certified by a public
medical practitioner
d. Legal separation or de facto separation from spouse for at least 1
year as long as he/she is entrusted with the custody of children
e. Nullity or annulment of marriage decreed by a court or by a
church as long as in custody of the children
f. abandonment of spouse for at least 1 year
3. Unmarried father/mother who has preferred to keep and rear his or her
children
4. Any other person who solely provides parental care and support to
children, provided he she is licensed foster parent by DSWD or court
5. Any family member who assumes the responsibility of head of family as
a result of
a. death
b. abandonment
c. disappearance
d. prolonged absence of the parents or solo parent
Provided, that such last for at least 1 year.

Change in status or circumstance, such that he is no longer left alone shall

terminate his/her eligibility.

Conditions
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 1. He/she must fall among those referred to as a solo parent
2. Must have the actual and physical custody Of The child or children;
3. Must have at least rendered service Of 6 months to his or her Er whether
continuous or broken;
4. He or she must remain a solo parent;
5. He or she must have a SOLO PARENT ID issued by the DSWD; and
6. He must notify the Er Of the availment thereof within a reasonable
period of time.

e) Leave Benefits for Women Workers Under Magna Carta of Women (RA
9710) and Anti-Violence Against Women and their Children of 2004 (RA
9262)
Leave Benefits for Women
A woman Ee having rendered continuous aggregate employment service Of at
least 6 months for the last 12 months shall be entitled to a special leave benefit
(SLB) Of 2 months with full pay based on her gross monthly compensation
following surgery caused by gynecological disorders. (Sec. 18, RA 9710, Magna
Carta ofWomen)

Conditions
Any female employee in the public and private sector regardless Of age and
civil Status shall be entitled to a special leave Of two (2) months with full pay
based on her gross monthly compensation subject to existing laws, rules and
regulations due to surgery caused by gynecological disorders under such terms
and conditions:
1. She has rendered at least six (6) months continuous aggregate
employment service for the last twelve (12) months prior to surgery;
2. She has filed an application for special leave;
3. She has undergone surgery due to gynecological disorders as certified
by a competent physician.

A female Ee can avail Of the special leave benefit for every instance Of surgery
due to gynecological disorder for a maximum total period Of 2 months per year.
(Sec. 6, DO 112-A, DOLE, series of2012)

NOTE: special leave benefit (SLB) and SSS maternity benefit are mutually
exclusive, as such a female Ee may avail the special leave benefit in case she
undergoes surgery caused by gynecological disorder even on maternity leave.
However, where the woman Ee undergone surgery due to gynecological
disorder during her maternity leave, she is entitled only to the difference
between the SLB and the maternity benefit. (Sec 9, DO 112-A, DOLE, series
012012)

The SLB is a leave privilege. The woman employee shall not report for work for
the duration Of the leave but she will still receive her salary covering said
period. The employer, in its discretion, may allow said employee to receive her
pay for the period covered by the approved leave before or during the surgery.
The computation Of her pay shall be based on her prevailing salary at the time
Of the surgery. (Sec. 11, D. O. NO. 112, as amended)
 The SLB Shan be non-cumulative and nonconvertible to cash unless otherwise
provided by a CBA (Sec. 12, DO. No. 112, as amended)

Q: Because Of the stress in caring for her four (4) growing children, Tammy suffered a
miscarriage late in her pregnancy and had to undergo an operation. In the course Of the
operation, her obstetrician further discovered a suspicious-looking mass that required
the subsequent removal Of her uterus (hysterectomy). After surgery, her physician
advised Tammy to be on full bed rest for six (6) weeks. Meanwhile, the biopsy Of the
sample tissue taken from the mass in Tammy's uterus showed a beginning malignancy
that required an immediate series Of chemotherapy once a week for four (4) weeks.
What benefits can Tammy claim under existing social legislation? (2013 BAR)

A: Assuming she is employed, Tammy is entitled to a special leave benefit Of two months
with full pay (Gynecological Leave) pursuant to RA 9710 or the Magna Carta of Women. She
can also claim Sickness Leave Benefit in accordance with the SSS Law.

Leaves for victims of VAWC

Violence against women and their children refers to any act or a series Of acts
committed by any person against a woman who is his wife, former wife, or
against a woman with whom the person has or had a sexual or dating
relationship, or with whom he has a common child, or against her child
whether legitimate or illegitimate, within or without the family abode, which
result in or is likely to result in physical, sexual, psychological harm or suffering,
or economic abuse including threats Of such acts, battery, assault, coercion,
harassment or arbitrary deprivation Of liberty. [Sec 3(a), RA 9262]

It allows the victim Of violence, which may be physical, sexual, or psychological,

to apply for the issuance Of a protection order. If such victim is an Ee, she is
entitled to a paid leave Of up to 10 days in addition to other paid leaves under
the Labor Code, Other laws and company policies.

The Ee has to submit a certification from the Punong Barangay or Kagawad,

prosecutor, or clerk Of court that an action under RA 9262 has been filed and is
pending.

For government Ees, in addition to the certification, the Ee concerned must file
an application for leave citing RA 9262 as basis.

NOTE: Ee can file for an extended leave from her employer if the 10-day leave is
not enough and when the necessity arises as specified in the protection order
issued by the barangay or court

Battered woman leave. — The qualified victim-employee shall be entitled to a

leave of up to ten (10) days with full pay, consisting of basic salary and
mandatory allowances fixed by RTWPB.

Requirement. — To be entitled to the leave benefit, the only requirement is for

the victim-employee to present to her employer a certification from the

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 1. barangay chairman or
2. barangay councilor or
3. prosecutor or
4. the Clerk of Court, as the case may be

that an action relative to the matter is pending.

Non-cumulative and non-convertible to cash.

Q: Can an Ee apply for the 10-day leave from her Er just because of a black eye or any
manifestation of abuse?

A: NO. The 10-day leave under the VAWC may only be availed of if the victim has applied for
any protection order with the intention to file a case against the assailant.

f) Compassionate Leaves
Or Bereavement leaves are currently NOT statutorily mandated benefit

4. Special Groups of Employees

a) Women
Persons covered under the classification of certain women workers
Any woman Who is permitted or suffered to work:
1. With or without compensation:
2. In any night club, cocktail lounge, massage clinic, bar or similar
establishment;
3. Under the effective control or supervision Of the Er for a
substantial period Of time;
4. Shall be considered as an Ee Of such establishment for purposes
Of labor and social legislation. (Art. 136 OfLC)

(1) Discrimination
1. With respect to terms and conditions of employment
a. Discrimination in pay - Payment of a lesser compensation
including wage, salary or other form of remuneration and
fringe benefits, to a female EE as against a male EE
b. Discrimination in employment opportunity - favoring a
male EE over a female EE with respect to promotion,
assignment, transfer, training opportunities, study and
scholarship grants on account of their sexes.
c. Discrimination in hiring - favoring a male application with
respect to hiring where the particular job can equally be
handled by a woman
d. Discrimination in dismissal - favoring a male EE over a
female EE with respect to dismissal of personnel or the
application of the “last in, first out principle”.

The Er has the burden of proof to prove the existence of a

reasonable business necessity that would justify an employment
policy.
 (2) Stipulation Against Marriage
It shall be unlawful for an employer
a. to require as a condition of employment or continuation of
employment that a woman employee shall not get married, or
b. to stipulate expressly or tacitly that upon getting married, a
woman employee shall be deemed resigned or separated, or
c. to actually dismiss, discharge, discriminate or otherwise prejudice
a woman employee merely by reason of her marriage.

Cadiz v. Brent Hospital and Colleges 2016

Brent imposed on Cadiz the condition that she subsequently
contract marriage with her then boyfriend for her to be reinstated.
According to Brent, this is "in consonance with the policy against
encouraging illicit or common-law relations that would subvert
the sacrament of marriage."

The Magna Carta of Women protects women against

discrimination in all matters relating to marriage and family
relations, including the right to freely choose a spouse and to
enter into marriage only with their free and full consent.

No-spouse Employment Policy

It is a policy banning spouses from working in the same company.
Generally, spouses are allowed to work in the same company,
provided it is not in the same department, where there is direct
supervision or control. In case spouses are in the same
department, one Of them may be reassigned to another
department.

NOTE: The XPN of Bonafide occupational Qualification BFOQ Rule

occurs when the employer can prove that reasonable demands Of
the business require a distinction based on marital Status and
there is no better or acceptable policy which would better
accomplish the business purpose.

There must be a finding Ofany BFOQ to justify an Er's no-spouse

employment rule. There must be a compelling business necessity
for which no alternative exists Other than the discriminating
practice.

Q: Glaxo, a company which has a policy against Ees having relationships With the Ees Of
its competitors, employed Tecson as a medical representative. Tecson married Bettsy, a
Branch coordinator in one Of Glaxo's competitors. Tecson was then transferred to
another area but he did not accept such transfer. Is the policy Of Glaxo valid and
reasonable so as to constitute the act Of Tecson as willful disobedience?

A: YES. The prohibition against personal or relationships with Ees Of competitor companies
upon Glaxo's Ees is reasonable under circumstances because relationships Of that might
compromise the interest Of the company. Glaxo does not impose an absolute prohibition
against relationships between its Ees those Of competitor companies. Its Ees are to cultivate
Page 72 of 9
relationships with and marry Of their own choosing. What the company merely seeks to
avoid is a conflict Of between the Ee and the company that arise Out Of such relationships.
Furthermore, the prohibition forms part Of the employment contract and Tecson was aware
Of restrictions when he entered into a relationship with Bettsy. (Duncan Assoc. Of
Detailman-PTGWO v. Glaxo We//come Phil. Inc., No. 162994, sept 17, 2004)

Q: May a woman worker be dismissed on the ground of dishonesty for having written on
the space for civil Status on the application sheet, contrary to the fact that was married?

A: NO. Art. 136 of the Labor Code explicitly prohibits discrimination merely by reason Of
marriage Ofa Ee. The policy Of not accepting or disqualifying from work any woman worker
contracts marriage is afoul Of the right discrimination provided to all women by Our labor
laws and by Our

Q: An international night stewardess Of PAL discharged from service, on account Of

marriage. PAL contends that Art. 134 Of Labor Code applies only to women Ee in
ordinary occupations. Is the termination

A: NO. The termination is not legal and the Of PAL against marriage is patently illegal.
Requiring that prospective flight attendants be single and that they wili be automatically
separated from the service once marry was declared void, it being violative the clear
mandate in Art 134 Of the Labor with regard to discrimination against women. Art. 134 is not
intended to only to women employed in law be it on special or ordinary occupations.

(3) Prohibited Acts

It shall be unlawful for any Er to:
I. Deny any woman Ee benefits provided by
2. Discharge any woman for the purpose Of preventing her from
enjoying any Of the benefits provided by law.
3. Discharge such woman on account Of her pregnancy, or while
on leave or in confinement due to her pregnancy.
4. Discharge or refuse the admission Of such woman upon
returning to her work for fear that she may again be pregnant. (LC
Art 135)

Series of absences due to pregnancy and its related ailments not a

ground to dismiss Ee

The court agreed that in concluding that respondent's sickness was

pregnancy-related and therefore, the petitioner cannot terminate
respondent's services because in doing so, petitioner will be violating Art-
137 (now Art. 135) Of the LC.

Q: Can an Er dismiss an Ee on the ground of deliberately concealing her pregnancy and

incurring absences without official leave?
A: No, her absences was justified considering that she had just delivered a child, which can
hardly be considered a forbidden act, a dereliction of duty, much less does it imply wrongful
intent on the part of the Ee.

b) Minors
Child labor refers to any work or economic activity performed by a child that
subjects him/her to any form of exploitation or is harmful to his/her health and
safety or physical, mental or psychosocial development.

Working child refers to any child engaged as follows:

a. when the child is below eighteen (18) years of age, in work or economic
activity that is not child labor; and
b. when the child is below 15 years of age
i. n work where he/she is directly under the responsibility of his/her
parents or legal guardian and where only members of the child ‘s
family are employed; or
ii. in public entertainment or information.

Rules on employment of Minor

I. NO person under 18 years Of age is allowed to be employed in an undertaking
which is hazardous or deleterious in nature.
2. NO Er shall discriminate against any person with respect to terms and
conditions Of employment on account Of his age.

A. Children below fifteen (15) years Of age shall not be employed except:
I. When the child works directly under the sole responsibility Of his
parents or legal guardian and where only members Of the family are
employed, subject to the following conditions:
a. Employment does not endanger the child's safety, health and
morals;
b. Employment does not impair the child's normal development;
and
c. Er-parent or legal guardian provides the child with the primary
and/or secondary education prescribed by the Department Of
Education

2. When the child's employment or participation in public entertainment

information through cinema, radio or television is essential provided:
a. Employment contract is concluded by the child's parents or
legal guardian;
b. With the express agreement Of the child concerned, if
possible;
c. The approval Of DOLE, the following must be complied
with:
i. The employment does not involve advertisement or
commercials promoting alcoholic beverages
intoxicating drinks, tobacco and its by-products or
exhibiting violence

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 ii. There is a written contract approved by DOLE iii.
iii. The conditions provided in the first instance are met
(Sec. 12, Art. WII, RA 7610)

A work permit shall be secured from DOLE in both instances.

Hours of Work. up to 4H/D, 20H/W; 6am to 8pm only

A working child permit is NOT required if a child below 15 years of

age:
1. Is a spot extra or is cast outright on the day Of filming
or taping Of a project;
2. Will join auditions or VTR screenings;
3. Is part Of the audience Of a live television show
unless the child's participation is expected;
4. Is picked or chosen as contestant from the audience
Of a live television show,
5. Is a contestant for a television show but has not yet
been selected as a semi-finalist;
6. Is a recipient Of gift-giving activities in television;
7. Is a participant in school-related performance;
8. Is a participant in sports activities, trainings or
workshops; or
9. Will be featured in a documentary material.

B. 15 and above, but below 18 years of age

General Rule: May be employed
Hours of Work. up to 8H/D, 40H/W; 6am to 10pm only
Exception: In an undertaking which is deleterious or hazardous in nature
a. Industrial Classification
i. Mining and Quarrying
ii. Construction
iii. Transportation and storage
iv. Water supply, sewage, waste management and
remediation activities
v. Forestry and Logging;
vi. Fishing and Agriculture;
vii. Hunting, Trapping;
viii. Security and Investigation;
ix. Manufacturing

b. Occupational Classification
i. Farmers
ii. Animal Producers;
iii. Physical, Life Sciences and Health Associate Professionals;
iv. Sales and Services Elementary Occupations;
v. Personal and Protective Services Workers;
vi. Customer Services Clerks;
vii. Other Craft and Related Trade Workers.
 Prohibition on the Employment of Children in Worst Forms of Child Labor.
— No child shall be engaged in the worst forms of child labor. The phrase “worst
forms of child labor” shall refer to any of the following:
a. All forms of slavery, as defined under the “Anti-trafficking in
Persons Act of 2003”, or practices similar to slavery such as sale
and trafficking of children, debt bondage and serfdom and forced
or compulsory labor, including recruitment of children for use in
armed conflict.
b. The use, procuring, offering or exposing of a child for prostitution,
for the production of pornography or for pornographic
performances
c. The use, procuring or offering of a child for illegal or illicit
activities, including the production or trafficking of dangerous
drugs or volatile substances prohibited under existing laws; or
d. Work which, by its nature or the circumstances in which it is
carried out, is hazardous or likely to be harmful to the health,
safety or morals of children, xxxx
Prohibition on the Employment of Children in Certain Advertisements. — No
child shall be employed as a model in any advertisement directly or indirectly
promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts,
gambling or any form of violence or pornography.

Q: A spinster schoolteacher took pity on one Of her pupils, a robust and precocious 12
year-old boy Whose poor family could barely afford the cost Of his schooling. She lives
alone at her house near the school after her housemaid left. In the afternoon, she lets
the boy do various Chores as Cleaning, fetching water and all kinds Of errands after
school hours. She gives him rice and Php 30.00 before the boy goes home at 7 every
night.

The school principal learned about it and charged her With violating the law Which
prohibits the employment Of children below 15 years Of age. In her defense, the teacher
stated that the work performed by her pupil is not hazardous, and she invoked the
exception provided in the Department Order Of DOLE for the engagement Of persons in
domestic and household service. Is her defense tenable? (2004 BAR)

A: NO. Under Art. 137 Of the LC on "minimum employable age," no child below 15 years Of
age shall be employed except when he works directly under the sole responsibility Of his
parents or guardian, the provisions Of the alleged department order Of DOLE to the contrary
notwithstanding. A mere department order cannot prevail over the express prohibitory
provisions Of The LC
c) Kasambahays
All kasambahay engaged in domestic work, whether on a live-in or live-out
arrangement, such as, but not limited to, the following:
1. General househelp;
2. Nursemaid or Yaya;
3. Cook;
4. 4. Gardener,
5. Laundry person;

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 6. Working children or domestic workers 15 years and above but below 18
years Of age;
7. Any person Who regularly performs domestic work in one household on
an occupational basis (live-out arrangement).

Persons not covered

1. Service providers;
2. Family drivers;
3. Children under foster family arrangement;
4. Any Other person Who performs work occasionally or sporadically and
not on an occupational and regular basis.

Children under foster family arrangement

Children under foster family arrangement are those who are living with a family
or household Of relative's and are provided access to education and given an
allowance incidental to education, i.e„ "baon," transportation, school projects,
and school activities; provided, that the foster family and foster care
arrangements are in compliance with the procedures and requirements as
prescribed by RA 10165 or the Foster Care Act Of 2012.

Q: Soledad, a widowed schoolteacher, takes under her Wing one Of her students, KikO,
13 years Old, Who was abandoned by his parents and has to do Odd jobs in order to
Study. She allows Kiko to live in her house, provides him With clean clothes, food, and a
daily allowance Of 200 pesos. In exchange, Kiko does ro utine housework, consisting Of
cleaning the house and doing errands for Soledad.

One day, a representative Of the DOLE and the DSWD came to Soledad's house and
charged her With Violating the law that prohibits work by minors. Soledad objects and
offers as a defense that she was not requiring Kiko to work as the chores were not
hazardous. Further, she did not give him chores regularly but only intermittently as the
need may arise. Is Soledad's defense meritorious? (2015 BAR)

A: YES, Soledad's defense is meritorious. Sec. 4 (d) Of the Kasambahay Law (RA 10361)
provides that the term "Domestic Worker" shall not include children who are under foster
family arrangement, and are provided access to education and given an allowance
incidental to education, i.e., "baon", transportation, school projects and school activities.

Employment contract and renewal. — Before the commencement of the

service, a written employment contract between the Kasambahay and the
employer shall be accomplished in three (3) copies. The contract shall be in a
language or dialect understood by both the Kasambahay and the employer

Renewal of Contract. — Should the parties mutually agree to continue their

employment relationship upon expiration of the contract, they shall execute a
new contract to be registered with the concerned barangay. However, if the
parties fail to execute a new contract, the terms and conditions of the original
contract and other improvements granted during the effectivity of said
contract are deemed renewed.

Persons performing work occasionally or sporadically

 1. A janitress doing irregular laundry work for a household during rest day;
2. A construction worker doing casual gardening job for a household; or
3. A hospital nurse or a student doing babysitting job.

Employable age for kasambahay

15 years Old and above

NOTE: The employment Of children 15 but below 18 years Of age may be made
under the following conditions:
I. They shall not be allowed to work for more than 8 hours a day, and in
no case beyond 40 hours a week;
2. They shall not be allowed to work between 10 p.m. to 6 a.m. Of the
following day;
3. They shall not be allowed to do hazardous work; and
4. They shall not be denied access to education and training

The consent Of the parent/guardian Of working children is required in

the employment contract.

The rights and privileges of the Kasambahay are as follows:

a. Minimum wage;
b. Other mandatory benefits, such the daily and weekly rest period,
service incentive leave and 13th month pay
c. Coverage under the SSS, Philihealth and Pag-ibig laws
d. Board, lodging and medical attendance
e. right to privacy
f. access to outside communication
g. access to education and training
h. right to form, join, or assist labor organization
i. right to be provided a copy pf the employment contract
j. right to certificate of employment and
k. right to exercise their own religion beliefs and cultural practices

Registration Of the Kasambahav

The Er is required to register the kasambahay in the Registry Of Domestic
Workers in the harangay where the Er resides. For this purpose, the DILG, in
coordination with the DOLE, shall formulate a registration system.
NOTE: The registration Of the kasambahay is free Of charge.

Q•. Linda was employed by Sectarian University (SU) to cook for the members Of a
religious order Who teach and live inside the campus. While performing her assigned
task, Linda accidentally burned herself. Because Of the extent Of her injuries, she went
on medical leave. Meanwhile, SU engaged a replacement cook. Linda filed a complaint
for illegal dismissal, but her Er SU contended that Linda was not a regular Ee but a
domestic househelp. Decide. (2014 BAR)

A: The Er's argument that Linda was not a regular Ee has no merit. The definition Of
domestic servant or househelper contemplates one who is employed in the Ers home to
minister exclusively to the personal comfort and enjoyment Of the El's family. The Supreme
Court already held that the mere fact that the house helper is working in relation to or in
connection with its business warrants the conclusion that such househelper or domestic
Page 78 of 9
servant is and should be considered as a regular Ee. (Apex Mining CO., Inc. v. NLRC, G.R No.
94951, April 22, 1991) Here, Linda was hired not to minister to the personal comfort and
enjoyment Of her Eris family but to attend to Other Ees who teach and live inside the
campus.

Q; Can the Er inspect the belongings of the kasambahay before he/she leaves the
household in case of termination of employment?

A: NO. The Er cannot inspect the belongings of the kasambahay. However, they can agree in
their employment contract that an inspection can be made before he/she leaves the
household.

Payment dispute
The kasambahay can go to the Kasambahay Desk Officer in their respective barangays or
the nearest DOLE filed/provincial/regional office.

Q: Albert, a 40-year-old Er, asked his domestic helper, Inday, to give him a private
massage. When Inday refused. Albert showed her Art. 141 Of the Labor Code, Which says
that one Of the duties Of a domestic helper is to minister to the ErS personal comfort
and convenience. Is Inday's refusal tenable? (2009 BAR)

A: YES. Indafs refusal to give her Er a "private massage" is in accordance with law because
the nature Of the work Of a domestic worker must be in connection with household chores.
Massaging is not a domestic work

Q: NBC has a rest house and recreational Facility in the highlands Of Tagaytay City for
the use Of its top executives and corporate clients. The rest house staff includes a
caretaker, two cooks and a laundrywoman. All Of them are reported to the SSS as
domestic or household Ees Of the resthouse and recreational facility and not Of NBC.
Can NBC legally consider the caretaker, cooks and laundrywoman as domestic Ees of
the rest house and not NBC? (2000 BAR)

A: NO, they are not domestic Ees. They are the Ees Of NBC because the rest house and
recreational facility are business facilities which are for use Of NBC's top executives and
clients. (Traders Royal Bank v. NLRC, GR. No. 127864, Dec. 22, 1999)

NOTE: A househelp, a laundrywoman, a driver, houseboy or gardener working in staff houses

Of a company who attends to the needs Of the company's guests is not a househelper or
domestic servant. He is an industrial worker Who must be paid the industrial rate.

d) Homeworkers
They are those Who perform in or about his own home any processing or
fabrication Of goods or materials, in whole or in part, which have been
furnished directly or indirectly, by an Er and sold thereafter to the latter.

Industrial Homeworker
It is a system Of production under which work for an Er or contractor is carried
out by a homeworker at his/her home. Materials may or may not be furnished
by the Er or contractor.
 It differs from regular factory production principally in that it is a decentralized
form Of production where there is ordinarily very little supervision or regulation
of methods of work. [Sec. 2(a), DO No 05-92]

Authorized to form labor organization.

Exemption from minimum Wage if engaged in needlework. The title on Wages

shall not apply to farm tenancy or leasehold, domestic service and persons
working in their respective homes in needle work or in any cottage industry
duly registered.

The following shall be prohibited as homework:

I. Explosives, fireworks and similar articles;
2. Drugs and poisons; and
3. Other articles, the processing Of which requires exposure to toxic
substances.

Q: Josie is the confidential secretary Of the Chairman Of the Board Of the bank. She is
presently on maternity leave. In an arrangement where the Chairman Of the Board can
still have access to her services, the bank allows her to work in her residence during her
leave. For this purpose, the bank installed a fax machine in her residence, and gave her
a cellphone and a beeper. Is Josie a homeworker under the law? Explain. (2000 BAR)

A; NO, she is actually an office worker. She is not an industrial homeworker who accepts
work to be fabricated or processed at home for a contractor, which work, when finished, will
be returned to or repurchased by said contractor. (LC Art 155)

e) Night Workers
Any employed person whose work covers the period from ten o'clock in the
evening to six o'clock the following morning, provided that the worker performs
no less than seven (7) consecutive hours Of work.

Night work is at least seven (7) consecutive hours Of work between 10:00pm
and 6:00am. (D.o No. 119-12)

Persons Covered
General Rule: All persons who shall be employed or permitted or suffered to
work at night.

Exception: Those employed in agriculture, stock raising, fishing, maritime

transport and inland navigation, during a period Of not less than 7 consecutive
hours, including the interval from midnight (12am) to five o'clock in the
morning (5am), to be determined by the SOLE after consulting the workers'
representatives/ labor organizations and Ers. (Art 154, LC as added by RA 10151
approved onJune 21, 2011)

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Right to Health Assessment. — At their request, workers shall have the right to
undergo a health assessment without charge and to receive advice on how to
reduce or avoid health problems associated with their work.
a. Before taking up an assignment as a night worker;
b. At regular intervals during such assignment; and
c. If they experience health problems during such an assignment
which are not caused by factors other than performance of night
work.

NOTE; Findings of such assessments shall not be transmitted to others without

the workers' consent and shall not be used to their detriment.

Exception:: Finding Of unfitness for night work (Art 155 ofLC)

Night workers Who are certified as unfit for night work, due to health reasons,
shall be transferred, whenever practicable, to a similar job for which they are fit
to work.

If such transfer to a similar job is not practicable, or the workers are unable to
render night work for a continuous period Of not less than six (6) months upon
the certification Of a competent public health authority, these workers shall be
granted the same benefits as other workers who are unable to work, or to
secure employment during such period. (DO. NO. 119-12)

Pursuant to the provisions Of D.O. NO. 119-12, it the application Of Art. 298 to a
worker is found unfit for night work if his transfer another (day time) job is not
practicable. Art. 298 authorizes the separation Of an Ee suffering a disease. For
an Ee found unfit for night the ENS ultimate recourse, therefore, may
employment termination based on an authorized cause. (Azucena, VOL I, 2016,
p. 499)

Employability of Women for Night WOrk

Measures shall be taken to ensure that an alternative to night work is available
to women who would otherwise be called upon to such work:
a. Before and after childbirth, for a period Of at least 16 weeks, which shall
be divided between the time before and after childbirth;
b. For additional periods, in respect Of which a medical certificate is
produced stating that said additional periods are necessary for the
health Of the mother or child:
i. During pregnancy;
ii. During a specified time beyond the period, after childbirth is fixed
pursuant to number I, the length Of which shall be determined by
the DOLE after consulting the labor organizations and Ers.
 A woman worker shall not be dismissed or given notice Of dismissal, except for
just or authorized causes provided for in the Code that are not connected with
pregnancy, childbirth and childcare responsibilities.

A woman worker shall not lose the benefits regarding her Status, seniority, and
access to promotion which may attach to her regular night work position

Pregnant Women
They are allowed if a competent physician, other than the company physician,
shall certify their fitness to render night work, and specify, in the case Of
pregnant Ees, the period Of the pregnancy that they can safely work.

Protection
The law protects the night workers by requiring:
1. The provision Of certain facilities such as sleeping or lactation quarters
and means Of transport;
2. Conduct Of medical examination to determine fitness for night work;
and,
3. Observance Of legal process to decide appropriate action where a
worker is found unfit for night work. Such process includes transfer Of
worker to day work, if practicable, and, only as a last recourse separation
from employment

Mandatory Facilities
1. Suitable first-aid facilities, including arrangements where such workers,
where necessary, can be taken immediately to a place for appropriate
treatment.
2. Safe and healthful working conditions and adequate or reasonable
facilities, i.e., sleeping or resting quarters in the establishment, and
transportation from the work premises to the nearest point Of their
residence subject to exceptions and guidelines to be provided

Criminal liability of Employer. — Any violation of this Rule shall be punishable

with a fine of 30K-50K or imprisonment of not less than 6 months or both, at
the discretion of the court.

f) Apprentices and Learners

Apprenticeship It is practical training on the job supplemented by related
theoretical instruction involving a contract between an apprentice and an Er on
an approved apprenticeable occupation.

They are contractual workers whose length Of service depends on the term
provided for in the apprenticeship agreement Thus, the Er is not obliged to
employ the apprentice after the completion Of his training.

Coverage. —

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 1. Any enterprise duly registered with TESDA with 10 or more regular
workers. The number of apprentices shall not be more than 20% of its
total regular workforce.
2. Any unemployed person 15 years old and above may apply

Qualifications. — To qualify as apprentice, an applicant shall:

1. Be at least 15 years of age:
provided those 15 years less than 18 years of age may be eligible for
apprentice only in non-hazardous occupations
I. Nature Of work exposes worker to dangerous
environmental elemental contaminants or work conditions
2. Workers are engaged in construction work, logging,
firefighting mining, quarrying blasting stevedoring, deep-
sea fishing, and mechanized farming
3. Workers are engaged in the manufacture or handling Of
explosives and Other pyro technic products
4. Workers use, or are exposed to heavy or power-driven
machinery or equipment.
2. Be physically fit
3. Possess vocational aptitude and capacity
4. Possess the ability to comprehend and follow oral and written
instruction
5. The company must have an apprenticeship program duly approved by
SOLE

General Rule : Apprenticeship programs shall be primarily voluntary.

Exception: Compulsory apprenticeship
1. When grave national emergencies, particularly those involving the
security of the state, arise or particular requirements of economic
development so demand.
2. Where services of foreign technicians are utilized by private companies
in apprenticeable trades

Apprenticeable Occupation - Any trade, form Of employment or occupation

which requires more than three (3) months Of practical training with
theoretical instruction Officially endorsed by the tripartite body and approved
for apprenticeship by the TESDA.

Qualified Employers. — Only employers in highly technical industries may

employ apprentices and only in apprenticeable occupations approved by the
SOLE

Deductibility of Training Costs. — An additional deduction from taxable

income of one-half (1/2) of the value of labor training expenses incurred for
developing the productivity and efficiency of apprentices. Provided:
1. such program is duly recognized by the DOLE;
2. such deduction shall not exceed ten (10%) percent of direct labor
wage: and
3. apprentices are paid the minimum wage.
 Apprentices without Compensation. — The SOLE may authorize the hiring of
apprentices without compensation whose training on the job is
i) required by the school or training program curriculum or
ii) as requisite for graduation or board examination.

There is no Er-Ee relationship between students on one hand, and schools,

where there is written agreement between them under which the former
agree to work for the latter in exchange for the privilege to study free Of charge
provided the students are given real opportunities, as may be reasonable and
necessary to finish their chosen courses under such agreement

NOTE: The student is not considered an EE, for the purpose Of administering
and enforcing the provisions Of the Labor Code on conditions Of employment.

Apprenticeship period. — The period of apprenticeship shall not exceed six (6)
months.

He is deemed a regular Ee He cannot be hired as a probationary Ee since the

apprenticeship is deemed the probationary period.

Wages. — The wage rate of the apprentice shall start at 75% of the statutory
minimum wage for the first 6 months, thereafter, he shall be paid the full
minimum wage, including the full cost of living allowance.

Hours of work - An apprentice not otherwise barred by law from working eight
hours a day may be requested by his employer to work overtime and paid
accordingly, provided
i) there are no available regular workers to do the job, and
ii) the overtime work thus rendered is duly credited toward his training
time.

Q: Padilla entered into a written agreement With Gomburza College to work for the
latter in exchange for the privilege Of studying in said institution. His work was
confined to keeping clean the lavatory facilities Of the school. One school day, he got
into a fist fight With a classmate, Monteverde, as a result Of Which the latter sustained
a fractured arm.

Monteverde filed a civil case for damages against him, impleading Gomburza College
due to the latter's alleged liability as his Er. Under the circumstances, could Gomburza
College be held liable by Monteverde as Padilla's Er? (1997 BAR)

A: NO. Gomburza College is not liable for the acts Of Padilla because there is no Er-Ee
relationship between them. As provided in the IRR Of the LC, "there is no Er-Ee relationship
between students on one hand, and schools, colleges, or universities on the Other, where
students work with the latter in exchange for the privilege to study free Of charge, provided
the students are given real opportunity, including such facilities as may be reasonable and
necessary to finish their chosen courses under such arrangement."

Page 84 of 9
 Termination
1. Serve a written notice on the other at least 5 days before actual
termination
2. Stating the reason for such decision; and
3. A copy of said notice shall be furnished to the Apprenticeship Division
concerned.

Either party can terminate an agreement after the apprenticeship program but
only for a valid cause. It may be initiated by either party upon filing a complaint
or upon DOLEs own initiative.

Learners
Are persons hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable and which may be learned through practical
training on the job in a relatively short period of time which shall not exceed
three (3) months

Learner may be employed:

a. No experienced worker is available;
b. Employment of learner is necessary to prevent curtailment of
employment opportunities;
c. Employment does not create unfair competition in terms of labor costs
or impair or lower working standards;

The wages or salary rates of the learners which shall begin at not less than 75%
of the applicable MW

Learner Apprentice

Occupation Semi-skilled and other Any trade or form of

industrial occupations. employment or occupation
approved by the SOLE.

Theoretical instruction Not required. Required.

Competency based Required Not required.

Duration Not exceed 3 months More than 3 months, but shall

not exceed 6 months.
Limitation as to the work None 20% of the total work force.
force

Option to employ ER is obliged to hire Optional

Dispute LA DOLE RD

g) Persons With Disabilities

Those whose earning capacity is impaired by:
1. Physical deficiency
2. Age
3. Injury
4. Disease
5. Mental Deficiency
6. Illness

Handicapped workers may be employed

1. when their employment is necessary to prevent curtailment of
employment opportunities and
2. when it does not create unfair competition in labor costs or impair or
lower working standards.

Equal opportunity. — No disabled persons shall be denied access to

opportunities for suitable employment. A qualified disabled employee shall be
subject to the same terms and condition of employment and the same
compensation, privileges, benefits, fringe benefits, incentives or allowances as a
qualified able-bodied person.

XPN: Bona Fide Occupational Qualification

There is no minimum or maximum duration. It depends on the agreement but

it is necessary that there is a specific duration stated.

Persons With disability can be a regular Ee if work is usually or necessarily

desirable to the business. (Bernardo v. NLRC, GR NO. 122917, July 12, 1999)

The mere fact that a worker has a disability does not make him a disabled
worker because his disability may not impair his efficiency or the quality Of his
work. If despite his disability he can still efficiently perforrn his work, he would
be considered a qualified disabled worker entitled to the same treatment as
qualified able-bodied workers.

Sheltered employment - The Government shall endeavor to provide them work

if suitable employment for disabled persons cannot be found through open
employment;
Page 86 of 9
Apprenticeship - PWD may be hired as apprentices or learners if their disability
is not such as to effectively impede the performance Of job operations in the
particular occupations for which they are hired (LC Art. 81);

Vocational rehabilitation - To develop the skills and potentials Of disabled

workers and enable them to compete in the labor market;

Vocational] guidance and counse/ling.

Wage
General Rule: Handicapped workers are entitled to not less than 75% Of the
applicable adjusted minimum (Art H), LC)

Exception: All qualified handicapped workers shall the full amount Of the
minimum wage rate prescribed herein pursuant to RA 7277. (Wage No. NCR-18,
Effective October 4, 2013)

(1) Discrimination
The following constitutes acts Of discrimination:
I. Limiting, segregating, or classifying a job applicant with disability in such a
manner that adversely affects his work opportunities;
General Rule: Using qualification standards, employment tests or
Other selection criteria that screen out or tend to screen out a
PWD;
Exception:: Such standards, tests or Other selection criteria are
shown to be jobrelated for the position in question and are
consistent with business necessity

2. Utilizing standards, criteria, or methods Of administration that:

a- Have the effect Of discrimination on the basis Of disability, or
b- Perpetuate the discrimination Of others who are subject to
common administrative control

3. Providing less compensation, by reason Of his disability, that the amount

to which a non-disabled person performing the same work is entitled;
4. Favoring a non-disabled Ee over a qualified Ee with disability with
respect to promotion, training opportunities, study and scholarship
grants, solely on account Of the latter's disability;

General Rule: Dismissing or terminating the services Of an Ee

with disability by reason Of his disability

Exception: The Er can prove that he impairs the satisfactory

performance Of the work involved to the prejudice Of the
business entity; provided, however, that the Er first sought to
provide reasonable accommodations for persons with disability;

5. Failing to select or administer in the most effective manner employment

tests which accurately reflect the skills, aptitude or Other factor Of the
 applicant or Ee with disability that such test purports to measure, rather
than the impaired sensory manual or speaking skills Of such applicant or
Ee, in any; and
6. Excluding PWD from membership in labor unions or similar
organizations. (Sec. 32, Chapter 1, Title 111, RA 7277)

(a) Magna Carta for Disabled Persons (RA 7277)

No entity, whether public or private, shall discriminate
against a qualified disabled person by reason of disability
in regard to job application procedures, the hiring,
promotion, or discharge of employees, employee
compensation, job training, and other terms, conditions,
and privileges of employment.
(b) Mental Health Act (RA 11036)
Discrimination refers to any distinction, exclusion or
restriction which has the purpose or enjoyment or exercise,
on an equal basis with others, of all human rights and
fundamental freedoms in the political, economic, social
cultural, civil or any other field. It includes all forms of
discrimination, including denial of reasonable
accommodation. Special measure solely to protect the
rights or secure the advancement of persons with decision-
making impairment capacity shall not be deemed to be
discriminatory

(2) Incentives for Employers

1. Entitled to an additional deduction, from their gross income,
equivalent to 25% Of the total amount paid as salaries and wages
to disabled persons
Provided, however, that such entities present proof as
certified by the DOLE that disabled persons are under their
employ

Provided further, that the disabled Ee is accredited with the

DOLE and the Department Of Health as to his disability,
skills and qualifications.
2. Private entities that improve or modify their physical facilities in
order to provide reasonable accommodation for disabled persons
shall also be entitled to an additional deduction from their net
taxable income, equivalent to 50% Of the direct costs Of the
improvements or modifications. (RA 7277, Sec. 8)
The financial incentive if any, granted by law to SPQ Garments
whose Cutters and sewers in its garments-for-export operations
are 80% staffed by deaf and deaf-mute workers is additional
deduction from its gross income equivalent to 25% Of amount
paid as salaries to persons with disability (2013 BAR).

Q: Ana Cruz has a LOW IQ. She has to be told at least three times before she
understands her daily work assignment. However, her work output is at least equal to

Page 88 of 9
the output Of the least efficient worker in her work section. Is Ms. Cruz a handicapped
worker? Explain. (2000 BAR)

A: NO. LOW IQ does not make the worker "handicapped" in the contemplation of law
.
5. Sexual Harassment in the Work Environment
a) Sexual Harassment Act (RA 7877)
Work, education,or training related sexual harassment is “committed by an
employer, employee, manager, supervisor, agent of the employer, teacher,
instructor, professor, coach, trainor, or any person who, having authority,
influence or moral ascendancy over another in a work or training or education
environment, demands, requests or otherwise requires any sexual favor from
the other, regardless of whether the demand, request or requirement for
submission is accepted or not by the object of said act.”

Committed when
In relation to work, employment environment
1. The sexual favor is made as a condition in the hiring or in the
employment, re-employment or continued employment of said
individual, or in granting said individual favorable compensation, terms,
conditions, promotions, or privileges; or the refusal to grant the sexual
favor results in limiting, segregating or classifying the employee which in
any way would discriminate, deprive or diminish employment
opportunities or otherwise adversely affect said employee;
2. The above acts would impair the employee’s rights or privileges under
existing labor laws; or
3. The above acts would result in an intimidating, hostile, or offensive
environment for the employee.

In education or training environment

1. Against one who is under the care, custody or supervision of the
offender;
2. Against one who is under the care, custody or supervision of the
offender;
3. When the sexual favor is made a condition to the giving of a passing
grade, or the granting of honors and scholarships, or the payment of a
stipend, allowance or other benefits, privileges, or considerations; or
4. When the sexual advances result in an intimidating, hostile or offensive
environment for the student, trainee or apprentice.

Any person who directs or induces another to commit any act of sexual
harassment as herein defined, or who cooperates in the commission thereof by
another without which it would not have been committed, shall also be held
liable under this Act.

Duty of the Employer or Head of Office in a Work-related, Education or

Training Environment. – It shall be the duty of the employer or the head of the
work-related, educational or training environment or institution, to prevent or
deter the commission of acts of sexual harassment and to provide the
procedures for the resolution, settlement or prosecution of acts of sexual
harassment.
1. Promulgate appropriate rules and regulations in consultation with
and joint1y approved by the employees or students or trainees,
through their duly designated representatives, prescribing the
procedure for the investigation of sexual harassment cases and
the administrative sanctions therefor

Administrative sanctions shall not be a bar to prosecution in the

proper courts for unlawful acts of sexual harassment.

The said rules and regulations issued pursuant to this subsection

(a) shall include, among others, guidelines on proper decorum in
the workplace and educational or training institutions.

2. Create a committee on decorum and investigation of cases on

sexual harassment. The committee shall conduct meetings, as the
case may be, with officers and employees, teachers, instructors,
professors, coaches, trainors, and students or trainees to increase
understanding and prevent incidents of sexual harassment. It shall
also conduct the investigation of alleged cases constituting sexual
harassment.

In the case of a work-related environment, the committee shall be

composed of at least one (1) representative each from the
management, the union, if any, the employees from the
supervisory rank, and from the rank and file employees.

In the case of the educational or training institution, the

committee shall be composed of at least one (1) representative
from the administration, the trainors, instructors, professors or
coaches and students or trainees, as the case may be

The employer or head of office, educational or training institution

shall disseminate or post a copy of this Act for the information of
all concerned.

Liability of the Employer, Head of Office, Educational or Training Institution.

– The employer or head of office, educational or training institution shall be
solidarily liable for damages arising from the acts of sexual harassment
committed in the employment, education or training environment if the
employer or head of office, educational or training institution is informed of
such acts by the offended party and no immediate action is taken thereon.

Penalties. – Any person who violates the provisions of this Act shall, upon
conviction, be penalized by imprisonment of not less than one (1) month nor
more than six (6) months, or a fine of not less than Ten thousand pesos (P

Page 90 of 9
 10,000) nor more than Twenty thousand pesos (P 20,000), or both such fine and
imprisonment at the discretion of the court.

Any action arising from the violation of the provisions of this Act shall prescribe
in three (3) years.

b) Safe Spaces Act (Article IV of RA 11313 only; Exclude: Liability of Employers)

Gender-Based Sexual Harassment in the Workplace. -The crime of gender-
based sexual harassment in the workplace includes the following:
1. An act or series of acts involving any unwelcome sexual advances,
requests or demand for sexual favors or any act of sexual nature, whether
done verbally, physically or through the use of technology such as text
messaging or electronic mail or through any other forms of information
and communication systems, that has or could have a detrimental effect
on the conditions of an individual’s employment or education, job
performance or opportunities;
2. A conduct of sexual nature and other conduct-based on sex affecting the
dignity of a person, which is unwelcome, unreasonable, and offensive to
the recipient, whether done verbally, physically or through the use of
technology such as text messaging or electronic mail or through any
other forms of information and communication systems;
3. A conduct that is unwelcome and pervasive and creates an intimidating,
hostile or humiliating environment for the recipient: Provided, That the
crime of gender-based sexual harassment may also be committed
between peers and those committed to a superior officer by a
subordinate, or to a teacher by a student, or to a trainer by a trainee; and
4. Information and communication system refers to a system for
generating, sending, receiving, storing or otherwise processing
electronic data messages or electronic documents and includes the
computer system or other similar devices by or in which data are
recorded or stored and any procedure related to the recording or storage
of electronic data messages or electronic documents.

Duties of Employers. -Employers or other persons of authority, influence or

moral ascendancy in a workplace shall have the duty to prevent, deter, or
punish the performance of acts of gender-based sexual harassment in the
workplace. Towards this end, the employer or person of authority, influence or
moral ascendancy shall:

(a) Disseminate or post in a conspicuous place a copy of this Act to all

persons in the workplace;

(b) Provide measures to prevent gender-based sexual harassment in the

workplace, such as the conduct of anti-sexual harassment seminars;

(c) Create an independent internal mechanism or a committee on

decorum and investigation to investigate and address complaints of
gender-based sexual harassment which shall:
 (1) Adequately represent the management, the employees from
the supervisory rank, the rank-and-file employees, and the union,
if any;

(2) Designate a woman as its head and not less than half of its
members should be women;

(3) Be composed of members who should be impartial and not

connected or related to the alleged perpetrator;

(4) Investigate and decide on the complaints within ten (10) days
or less upon receipt thereof;

(5) Observe due process;

(6) Protect the complainant from retaliation; and

(7) Guarantee confidentiality to the greatest extent possible;

(d) Provide and disseminate, in consultation with all persons in the

workplace, a code of conduct or workplace policy which shall:

(1) Expressly reiterate the prohibition on gender-based sexual

harassment;

(2) Describe the procedures of the internal mechanism created

under Section 17(c) of this Act; and

(3) Set administrative penalties.

Duties of Employees and Co-Workers. -Employees and co-workers shall have

the duty to:

(a) Refrain from committing acts of gender-based sexual harassment;

(b) Discourage the conduct of gander-based sexual harassment in the

workplace;

(c) Provide emotional or social support to fellow employees, co-workers,

colleagues or peers who are victims of gender-based sexual harassment;
and

(d) Report acts of gender-based sexual harassment witnessed in the

workplace.

Page 92 of 9
Q: In the course Of an interview, another female applicant inquired from the same
Personnel Manager if she had the physical attributes required for the position she
applied for.

The Personnel Manager replied: "You Will be more attractive if you Will wear micro-mini
dresses Without the undergarments that ladies normally wear." Did the Personnel
Manager, by the above reply, commit an act Of sexual harassment?

A: YES. The remarks would result in an offensive or hostile environment for the Ee. Moreover,
the remarks did not give due regard to the applicant's feelings and it is a chauvinistic disdain
Of her honor, justifying the finding Of Sexual Harassment. (Villarama v. NLRC, GR NO. 106341,
sept 2, 1994)

Q: Pedrito Masculado, a college graduate from the province, tried his luck in the city and
landed a job as a utility/maintenance man at the warehouse of a big shopping mall.
After working as a casual Ee for 6 months, he signed a contract for probationary
employment for 6 months. Being well-built and physically attractive, his supervisor, Mr.
Hercules Barak, took special interest to befriend him.

When his probationary period was about to expire, he was surprised when one
afternoon after working hours, Mr. Barak followed him to the men's comfort room. After
seeing that no one else was around, Mr. Barak placed his arm over Pedrito's shoulder
and softly said: 'You have great potential to become a regular Ee and I think I can give
you a favorable recommendation. Can you come over to my condo unit on Saturday
evening so we can have a little drink? I'm alone, and I'm sure you want to Stay longer
With the company."

Is Mr. Barak liable for Sexual Harassment committed in a work-related or employment

environment? (2000 BAR)

A: YES. The elements Of Sexual Harassment are all present. The act Of Mr. Barak was
committed in a workplace. Mr. Barak, as supervisor Of Pedrito Masculado, has authority,
influence and moral ascendancy over Masculado.

Given the specific circumstances mentioned in the question like Mr. Barak following
MasculadO to the comfort room, etc. Mr. Barak was requesting a sexual favor from
Masculado for a favorable recommendation regarding the latter's employment. It is not
impossible for a male, who is a homosexual, to ask for a sexual favor from another male.

Q: A Personnel Manager, while interviewing an attractive female applicant for

employment, stared directly at her for prolonged periods, albeit in a friendly manner.
After the interview, the manager accompanied the applicant to the door, shook her
hand and patted her on the shoulder. He also asked the applicant if he could invite her
for dinner and dancing at some future time. Did the Personnel Manager, by the above
acts, commit Sexual Harassment? Reason. (2000 BAR)

A: YES. The Personnel Manager is in a position to grant or not to grant a favor (a job) to the
applicant Under the circumstances, inviting the applicant for dinner or dancing creates a
 situation hostile or unfriendly to the applicant's chances for a job if she turns down the
invitation.

Beso-beso Fashion
In the case Of Aquino v. Acosta (AM. NO. CTA-OII), the Supreme Court absolved Judge Acosta
Of liability under sexual harassment law in greeting complainant with a kiss on the cheek in
a 'besobeso' fashion, where most Of the kissing incidents were done on festive and special
occasions. The Court held that what respondent judge committed were casual gestures Of
friendship and camaraderie, nothing more, nothing less, and that there is no indication that
respondent was motivated by malice or lewd design. However, the Court admonished Judge
Acosta not to commit similar acts against complainant or other female Ees Of the CTA,
otherwise, his conduct may be construed as tainted with impropriety.

C. Social Welfare Legislation

1. SSS Law (RA 8282, as amended by RA 11199)
a) Coverage
Compulsory
a. All employees including kasambahays or domestic workers not over 60
years of age shall be members of the SSS.
b. Self-employed:
1. Professionals;
2. Partners and single proprietors of businesses;
3. Actors and actresses, directors, scriptwriters and news
correspondents, who do not fall within the definition of the term
“employee”;
4. Professional athletes, coaches, trainers, and jockeys; and
5. OFW, sea-based or land-based, are compulsory members.
6. Individual farmers and fisherman

Voluntary
a. Spouses who devote full time to managing the household and
family affairs;; except, employed
b. OFW upon termination of his/her employment overseas
c. A covered employee who was separated from employment who
continues to pay his/her contributions
d. Self-employed woh realizes no income for a certain month
e. Filipino permanent migrants, including Filipino immigrants,
permanent residents and naturalized citizens of their host
countries

By agreement
Any foreign government, international organization, or their wholly owned
instrumentality employing workers in the Philippines or employing Filipinos
outside the Philippines

Exclusion from coverage

Page 94 of 9
 1. Services where there is no er-ee relationship
2. Services performed in the employ of the Govt/agency/instrumentality
3. Services performed in the employ of foreign govt/ or international org
4. Temporary and other employees which may be excluded

Q: A textile company hires 10 carpenters to repair the roof of its factory which was
destroyed by typhoon bening. Are they covered under SSS?

A: No. The employment is purely casual and not for the purpose of the occupation or
business of the er. Their engagement is occasioned by the passage of the typhoon, they are
not hired on a regular basis.

Jurisprudence: A labor organization cannot be considered as an employer

under the law.

Jurisprudence: Civil status of the employee is not of relevance on determining,

who may qualify as the employee’s legal dependent. What is rather decidedly
controlling is the fact that the spouse, child, or parent is actually dependent for
support upon the employee. Except, already covered by their respective civil
service retirement systems.

b) Dependents and Beneficiaries

a. Legal spouse entitled by law to receive support from the member;

Jurisprudence: If there is separation de facto and the other spouse is not

dependent upon the member for support, then in legal contemplation,
the other spouse is not construed as dependent on the member.

b. Legitimate, legitimated, or legally adopted, and illegitimate child, who

is unmarried, not gainfully employed, and has not reach the age of 21
years of age, or if over, he is congenitally or while still a minor has been
permanently incapacitated of self-support, physically or mentally;

c. Parents who is receiving regular support from the member;

Primary Beneficiaries:
a. Dependent spouse until he or she remarries;
b. Dependent legitimate, legitimated, or legally adopted, and
illegitimate children.

Note: Absence of the primary beneficiaries, we shall go to the secondary

beneficiaries.

Secondary Beneficiaries:
a. Dependent parents;
b. In the absence of all the foregoing, any other person designated
by the member as his secondary beneficiary.
Q: J died in an accident while performing his duties as an electrician on board a vessel.
At the time of his demise, he was childless and unmarried, predeceased by his adoptive
parent Cornelio during his minority, and survived only by his biological parent
Bernardina. Bernardina filed a claim for death benefits, but the SSS reject her claim
because she is no longer considered a primary beneficiary, because she is no longer J's
legitimate parent due to his legal adoption by Cornelio. Is the SSS correct?

A: No. The term parents in the phrase dependent parents ought to be taken in its general
sense and cannot be unduly limited to legitimate parents. The phrase dependent parents
should, therefore, include all parents, whether legitimate or illegitimate by nature or by
adoption. When the law does not distinguish, one should not distinguish. Plainly, dependent
parents are parents, whether legitimate or illegitimate, biological or by adoption, who are in
need of support or assistance.

The entitlement to benefits as primary beneficiary requires not only

legitimacy but also dependence upon the member Ee.

Qualification of Spouse beneficiary

1. Must have been legally married to the retiree-pensioner at the
time of death
2. If the marriage was celebrated after the retirement of the
member, any of the following is present
a. living together as husband and wife without legal
impediment to marry each other prior to the retirement of
the member; or
b. the surviving spouse was reported as beneficiary-spouse in
the SSS forms prior to the retirement of the member; or
c. a child was born between them
d. before marriage, a child was born during the time the
spouses were living together without impediment to marry
e. the marriage between the surviving spouse and member is
established to have been contracted not for any fraudulent
purpose.
3. must have been dependent for support upon the member during
the existence of marriage

c) Benefits
a. Maternity Leave;
● Qualifying conditions
○ Paid at least 3 months
○ Employed, notify er of pregnancy and probably date of
delivery
○ Unemployed, notify SSS
● Granted regardless of civil status and frequency
● 100% for 105 days for normal or c/s delivery
● 120 days for solo parent
● 60 days for miscarriage or emergency

Page 96 of 9
Q: A, single, active SSS member of SSS for past 20 months. Pregnant and will deliver via
C/S section. Can A claim maternity benefits? If yes, how many days? If not, why is she
not entitled?

A; Yes. The SSS law does not discriminate based on the civil status of female member. AS
long as she has paid at least 3 months in the 12 month period immediately preceding the
semester of her childbirth.

Since A gave birth through c-section she is entitled to 100% of her average daily salary credit
for 105 days

Q: L is an unwed mother with 3 children from different fathers. In 2004, she became a
member of SSS. That same year, she suffered miscarriage out of wedlock from the
father of her third child. She wants to claim maternity benefits under SSS Act. Is she
entitled?

A: Yes. Provided that L has reported to her er her pregnancy and date of probable delivery
and paid at least 3 months during the 12 month period immediately preceding her
miscarriage.

b. Retirement Benefit:
● Conditions
○ 120 months contributions
○ Optional: Has reached the age of 60 years old, and is
already separated from work or has ceased to be self-
employed; except
■ mineworker - 55 years old (after april 27 2016)
■ mineworker - 50 years old (after april 27 2016)
○ Technical: Has reached the age of 65 years old, provided
that he has complied with the required monthly
contributions.
■ mineworker - 60 years old
■ racehorse jockey - 55
● Lump sum
○ at least 60 years old
○ does not qualify under par a sec 12-b
○ separated from employment
○ not continuing payment of contribution to SSS on his own
● Re-employment
○ Less than 65 years old subject to compulsory coverage
● Effect of death
○ PB - 100% monthly pension
○ NO PB - SB entitled to lump sum equivalent to the total
monthly pension corresponding to the balance of the 5 year
guaranteed period, excluding dependents pension and
additional allowance
○ if no PB or SB - estate

c. Death Benefit:
 ● Entitlement
○ death with at least 36 monthly payment prior to death
■ PB - entitled to monthly pension
■ SB - lump sum equal to 36 months
○ death with less than 36 monthly payment
■ PB or SB will get lump sum equal to number of
contribution or 12 times monthly pension
d. Permanent Disability Benefit.
● cash granted to a member
● Permanent Total (PTD)
○ Complete loss of eyesight
○ loss of two limbs at or above the ankle or wrists
○ complete paralysis of two limbs
○ brain injury resulting to imbecility or insanity
● Permanent Partial
○ If occurs after payment of 36 months
■ benefit shall be for the monthly pension for
permanent total disability
○ Lump sum - before 36 monthly payment
○ Monthly pension - after 36 monthly payment
○ Qualifications
■ Paid at least one month
■ 36 monthly paid, monthly disability pension
■ less 36 months paid, lump sum
○ Effect of death of pensioner with PTD
■ PB - entitled to receive monthly pension
■ If no PB and dies within 60 months from start of
pension - SB, entitled to lump sum corresponding
total balance of 5-year guaranteed period excluding
dependents pension
■ Effect of death or retirement of Partial disability
● Pension shall cease upon his retirement or
death
e. Funeral Benefit;
● 20K to 40K maximum cash grant or kind depending on
contributions
● Conditions
○ member reported for coverage contribution by er
○ self-employed/ofw/non-working spouse who had at least 1
contribution payment
○ voluntary member who was previously covered as
employed/self-employed/ofw with at least 1 contribution
payment
○ member was subject to compulsory coverage but was no
reported for coverage by er

f. Sickness Benefit;
● Daily cash allowance paid to the ee
● Qualifications:
Page 98 of 9
 ○ Unable to work for at least 4 days
○ paid 3 months before sickness
○ used all sick leave with pay
○ notify SSS
● 90% of average daily salary credit
● Limitations
○ 120 days in calendar year
○ paid for not more than 240 days on account of same illness
○ non-cumulative and non convertible to cash
○ compensable only after all SL credit exchausted
● Er or unemployed Not entitled
○ Er failed to notify SSS
○ unemployed failed to notify SSS directly, except confined
○ claim made after one year of confinement
● Requisites
○ Sickness/injury and disability are not related
○ member meets all qualifying conditions

Q: BEcause of stress in caring for her 4 growing children, T suffered a miscarriage late in
her pregnancy and had to undergo an operation. OB discovered a mass that required
removal of her uterus. After surgery, T on full bed rest for 5 months.

Meanwhile, a biopsy showed malignancy and required chemotherapy. WHat benefits

can T claim under social legislation?

A: Assuming T is employed, she is entitled to a special leave benefit of two months with full
pay. She can also claim sick leave benefits under SSS.

g. Unemployment insurance or involuntary separation Benefits.

● Conditions
○ Not over 60, except
■ mineworker, not over 50
■ racehorse jockey, not over 55
○ paid 36 months preceding unemployment
○ involuntarily separated, did not arise from fault or
negligence of ee.
○ Authorized causes only (S-R2-CD)

Jurisprudence: Premium for the SSS contribution is not a type of money

claim which needs to be filed against the estate proceedings.

Benefits are non-transferable and no power of attorney or other

documents executed by those entitled thereto in favor of an agent,
attorney or any other person for the collection thereof on their behalf
shall be recognized, except, when the payees are physically unable to
collect personally such benefits.

Injury may not be work-related to enjoy benefits under SSS.

2. GSIS Law (RA 8291)
a) Coverage
● Life insurance, retirement, and all other social security protections such
as disability, survivorship, separation and unemployment benefits.
● All ee irrespective of status, employed with:
○ National Govt
○ GOCCs
○ Govt Financial institutions with original charter
○ Constitutional commissions (LIFE INSURANCE ONLY)
○ Judiciary (LIFE INSURANCE ONLY)
● Compulsory
○ all ees who have not reach retirement age, except AFP/PNP
○ Elective - time of election below 65 and will be 65 at the end of
term including period of re-election to public office without
interruption
○ Appointive - before 65 are appointed and remains beyond 65
○ Contractual - includes casuals and other ee provided they have
fixed monthly compensation and rendering required number of
working hours per month
● Exclusions
○ Ee who have separate retirement benefit
○ Contractual ee who have no ee-er relationship
○ AFP, BFP, BJMP
○ PNP

b) Dependents and Beneficiaries

● Dependents
○ Legitimate spouse dependent for support
○ Unmarried and not gainfully employed legitimate, legitimated,
legally adopted, illegitimate child, or over age of majority but
incapacitated acquired prior to age of majority
○ Parents dependent upon member
● Beneficiaries
○ Primary
■ Legal spouse until remarries
■ Dependent children
○ Secondary
■ Dependent Parents
■ Legitimate descendants, subject to restrictions on
dependent children

c) Benefits
● Separation
○ Entitlement
Page 100 of 9
 ■ Rendered minimum 3 years
● 3 years but less than 15 years - 100% of the average
monthly compensation for every year of service he
has paid
○ not less than 12k
○ payable upon reaching 60 years of age or upon
separation whichever comes first
● 15 years and less than 60 years of age at time of
resignation or separation
○ cash payment equal to 18 times basic monthly
pension, payable at time of separation or
resignation
○ old age pension equal to BMP, payable
monthly for life upon reaching 60
■ Once a member always a member unless for valid cause,
forfeited benefits - 50% of cash surrender value of his
insurance

● Unemployment
○ monthly cash payment equal to 50% of average monthly
compensation
○ Conditions
■ permanent ee at time of separation
■ involuntary due to abolition of office or position resulting
from reorganization
■ paid at least 1 month prior to separation

● Retirement
○ Compulsory - 65 years old
■ 15 years of service
■ 60 years old
■ not receiving benefit from PTD
○ Lump sum - 60 months of BMP and old age pension for life, upon
expiration of 5 year lump sum
○ Cash - 18 times his BMP and monthly pension for life payable
immediately

● Permanent disability
○ Permanent Total disability (PTD) - accrues or arises when
recovery from any loss or impairment of the normal functions of
the physical or mental faculty of a member, which reduces or
eliminates his capacity to continue his current gainful occupation
or engage in other gainful occupation is medically remote
○ Permanent Partial Disability (PPD) - accrues or arises upon the
irrevocable loss or impairment of certain portions of the physical
faculties, despite which the member is able to pursue a gainful
occupation.
○ Conditions
■ Monthly income for life equal to BMP
 ● In the service at the time of disability
● If separated, has paid at least 36 months within 5
years immediately preceding his disability or paid a
total 180 monthly contribution prior to disability
■ Does not satisfy condition but has rendered at least 3 years
of service, advanced the cash payment equivalent to 100%
of his average monthly compensation for each year of
service but not less than 12K. which should have been his
separation benefit.
○ Suspension of payment
■ re-employed
■ recovers from disability
■ fails to present himself for medical examination
○ When Precluded
■ Due to the following acts of the ee:
● Grave misconduct
● Notorious negligence
● Habitual intoxication
● Willful intention to kill himself or another

● Temporary Disability - can be rehabilitated or restored to normal

function
○ Cannot be enjoyed with SL pay simultaneously
○ Benifits
■ 75% current daily rate, start not earlier on 4th day but not
exceed 120 days in one calendar year after exhausting all
sick leave credits and CBA sick leave benefits, provided:
● in the service of time of disability
● If separated, rendered at least 3 years of service and
paid 6 monthly contribution in the year preceding
■ TTD shall in no case be less than 70 a day
○ filed within 4 years from date of occurrence of the contingency

● Funeral
○ 18K payable to members in order they appear:
■ Legitimate spouse
■ Legitimate children who spent for the funeral
■ Any other person who can show unquestionable proof that
he has borne the funeral expense
○ Upon death of:
■ Active member
■ Separated but is entitled to future separation or retirement
benefits
■ Member pensioner (excluding survivorship pensioners)
■ Retiree, at least 60 who opted to retire under RA 1616

● Life insurance (endowment or ordinary)

Page 102 of 9
 ○ Compulsory - All EEs including Judiciary and constitutional
commissioners, except UNIFORMED PERSONNELS
■ Employed after effectivity of this act
■ Insurance will mature after effectivity of this act
■ Those without life insurance as of the effectivity of this act
○ Optional -
1. a member at any time may apply for himself and or his
dependents an insurance or pre-need coverage embracing:
● Life
● Memorial Plans
● Health
● Education
● Hospitalization
● Other plans as may be designed by GSIS
2. Any Er may apply for group insurance coverage for its Ee

● Prescriptive period: GR: 4 years from date of contingency, XPN:

Life insurance and retirement.

● Survivorship
○ Beneficiaries entitled to:
■ 50% of BMP
■ Dependent children pension not exceeding 50% of BMP
● as long as there are dependent children, thereafter,
spouse shall receive for life until death or remarries
○ Conditions for Primary Beneficiary
■ 1. Survivorship pension -
● in the service of time of disability
● If separated, rendered at least 3 years of service and
paid 6 monthly contribution in the year preceding
■ 2. Survivorship pension Plus a cash payment equal to 100%
of average monthly compensation (AMC) for every year of
service, provided, served at least 3 years
■ 3. Cash payment equivalent to 100% of his AMC fir each year
of service he paid but not less than 12K - Provided, rendered
3 years of service but does not qualify under 1 or 2.
○ Conditions for Secondary Beneficiary
■ Absence of Primary beneficiary
● Cash payment equivalent to 100% of his AMC fir each
year of service he paid but not less than 12K -
Provided, rendered 3 years of service but does not
qualify under 1 or 2.
● Absence of secondary beneficiary - paid to legal heir
■ Payment - after the end of the guaranteed 30 months, the
beneficiaries are still entitled to survivorship benefits.
● Dependent spouse only - receive for life or until
remarries
 ● Dependent children only - receive plus 10% of BMP
for every dependent child not exceeding 5 years
counted from youngest without substitution
● Spouse and children - spouse receives for life until
remarries, children dependent children pension

■ No presumption of sham marriages.

Q: G was employed as a public school teacher. On april 27 of 1997, a memo was issued by
the principal designating G to prepare the model dam project. G complied with the
instruction and took home the project to enable him finish the deadline. While working
on the model dam project, he came in contact with a live wire and was electrocuted. G
dies of cardiac arrest due to accidental electrocution.

B common law wife and J his only son filed a claim for death benefits which was denied
by GSIS, on the ground that death did not arise out of and in the course of employment.
Is B entitled?

A: No. She is not considered as a beneficiary. B is a common law wife and not a legal
dependent spouse. The beneficiaries of a member of GSIS are entitled to benefits arising
from the death of said member. Death benefits are called survivorship benefits under the
GSIS law.

Q: Is the death of G compensable?

A: Yes. To be compensable under the GSIS law, the death need not be work-connected. In
the case presented, although the accident happened at G’s house, it is still considered work-
connected since G only heeded to the memo issued by the principal and complied with the
instruction of his superior to work on the model dam project.

Q: O, a policeman, was on leave for a month. While resting, he heard two of his
neighbors fighting with each other. O rushed to the scene intending to pacify the
protagonists. However, he was shot to death. Z a housemaid was the surviving spouse
whom he had abandoned for another woman years back. When she learned of O’s
death she filed a claim with GSIS but was denied because O was on leave and she was
not the dependent spouse when he died. Resolve with reasons whether GSIS is correct
in denying the claim.

A: Yes. GSIS is correct in denying the claim. Under the law, a dependent is one who is a
legitimate spouse living with the employee. In the problem, Z had been abandoned at the
time of his death. Moreover, O was on leave when he was killed. The 24-hour duty rule does
not apply when the policeman is on vacation leave.

Jurisdiction provides, 1. that employee must be at the place where his work requires him to
be; 2. employee must have been performing his official functions; and 3. that the injury is
sustained elsewhere, the employee must have been executing an order for the employer.

Page 104 of 9
3. Disability and Death Benefits
a) Labor Code
● Employees Compensation Program
The state shall promote and develop a tax-exempt ECP whereby ees and
their dependents, in the event of work-connected disability or death,
may promptly secure adequate income benefit and medical related
benefits.
● Features
○ Integration of benefits
○ Increase in benefits
○ Prompt payment of income benefits
○ Legal services dispensed with
○ Wider coverage
○ A more balanced rehabilitation program.
● Prescriptive period
○ 3 years from time of cause of action
○ Reckoning of prescriptive period
■ Sickness - time Ee lost his earning capacity
■ Injury - time it was sustained
■ Death - time of death of the covered employee
● Beneficiary
○ Primary
■ Legitimate spouse until remarried
■ Legitimate, legitimated, legally adopted or acknowledged
natural children, who are unmarried not gainfully
employed, not over 21 years of age, or over 21 but
incapacitated due to physical or mental defect, which is
congenital or acquired during minority
● A dependent acknowledged natural child only
considered if there are no other dependent children
who are qualified, provided finally, that if there are 2
or more acknowledged natural children, they shall be
counted from the youngest and without substitution
but not exceeding 5.
○ Secondary
■ Legitimate parents wholly dependent upon the Ee for
regular support
■ Legitimate descendants and illegitimate children who are
unmarried not gainfully employed, not over 21 years of age,
or over 21 but incapacitated due to physical or mental
defect, which is congenital or acquired during minority
● Benefits - 90% of average daily salary credit
○ Disability - not mutually exclusive. Recovery from TTD or PPD can
still recover from PTD
■ Temporary Total Disability (TTD) - injury or sickness results
Ee unable to perform any gainful occupation for a
continuous period not exceeding 120 days or where injury
 or sickness still requires medical attendance beyond 120
days but not to exceed 240 days from onset of disability.
● Conditions
○ Duly reported to the system
○ Sustains TTD as a result of injury or sickness
○ System has been duly notified of injury or
sickness which caused his disability
○ Note: Er is liable for the benefit if such injury or
illness occurred before the ee is duly reported
for coverage to the system
■ Permanent Total Disability (PTD) - injury or sickness
results Ee unable to perform any gainful occupation for a
continuous period not exceeding 120 days except when the
disability not exceeding 240 days is declared as temporary
disability.
● Conditions
○ Duly reported to the system
○ Sustains TTD as a result of injury or sickness
○ System has been duly notified of injury or
sickness which caused his disability
○ Note: Er is liable for the benefit if such injury or
illness occurred before the ee is duly reported
for coverage to the system
○ Period of entitlement
■ Full month income shall be paid for all compensable
months of disability
■ Except: 5 year guarantee - suspended under the following
● Failure to present himself for examination at least
once a year upon notice by the system
● failure to submit a quarterly medical report by his
attending physician
● complete or full recovery from his permanent
disability
● upon being gainfully employed
■ Benefit for dependent children
● Each, not exceeding 5 from youngest and without
substitution entitled to 10%

■ Permanent Partial Disability (PPD) - injury or illness, ee

suffers a permanent partial loss of the use of any part of his
body.
● Note: An Ee’s disability may not manifest fully at one
precise moment in time but rather over a period of
time. A temporary becomes permanent, or a partial
disability becomes total and permanent for the same
cause.
● Conditions
○ Duly reported to the system
○ Sustains TTD as a result of injury or sickness
Page 106 of 9
 ○ System has been duly notified of injury or
sickness which caused his disability
○ Note: Er is liable for the benefit if such injury or
illness occurred before the ee is duly reported
for coverage to the system
○ A worker who sustained work-related injuries that resulted to
functional loss and/or physical loss of any part of his body shall be
granted TTD and PTD benefits successively. Any earlier
compensation for TTD that may have been paid to an injured
worked shall not be deducted from the PPD benefit that may be
later granted
○ Rules
■ Loss of wrist considered as loss of a hand
■ Loss of an elbow = loss of arm
■ Loss of ankle = loss of a foot
■ Lost of knee = loss of leg
■ Loss of more than one joint = loss of whole finger or toe
■ Loss of only the first joint = loss of ½ of the whole finger or
toe
■ Other permanent partial disabilities shall be determined by
the Medical Officer of the system

○ Death - result of a work-related injury or sickness

■ Conditions
● Duly reported to the system
● Sustains TTD as a result of injury or sickness
● System has been duly notified of injury or sickness
which caused his disability
● Note: Er is liable for the benefit if such injury or illness
occurred before the ee is duly reported for coverage
to the system
● If receiving PTD benefits at the time of death, the
surviving spouse must show that marriage has been
validly subsisting at the time of his disability. In
addition, the cause of death must be a complication
or natural consequence of the compensated PTD.
■ Period of entitlement
● Primary beneficiaries
○ Paid at the beginning of the month and
continue as long as the beneficiaries are
entitled thereto. Spouse, not remarried.
Dependent children:
○ Unmarried
○ Not gainfully employed
○ Over 21 but incapacitated acquired during
minority
○ Guaranteed for 5 years and not less than 15K
for as long as beneficiaries are entitled.
 ● Secondary beneficiaries
○ Paid 60 times the monthly benefit income, not
less than 15K paid in monthly pension
○ If no beneficiaries = accrue to employee
compensation fund
○ For muslims:
■ Equally divided for surviving wives
■ Upon remarriage of any wives, her basic
monthly pension = equally distributed
to the remaining wives
■ The qualified dependent children not
exceeding 5 with the youngest and
without substitution, who are entitled to
dependents pension, shall be counted
among the collective number of
children of the wives.
■ Presumptive death
● The word missing refers to unknown fate or there is
no trace of whereabouts of a worker, employee and
uniformed personnel while he she is in the
performance of his her duties during the calamities
or fatal events
● The worker, employee and uniformed personnel was
not seen or hear from after the lapse of 4 years from
the occurrence of the incident
● Disappearance gives rise to presumptive death
● Death arises out of and in the course of employment
●
● Street peril or going to or coming from work
○ General Rule: In the absence Of special circumstances, an Ee
injured While going to or coming from his place Of work is
excluded from the benefits Of Workmen's Compensation Act.
○ Exceptions:
■ Where the Ee is proceeding to or from his work on the
premises Of the Er;
■ Proximity Rule — where the Ee is about to enter or about
to leave the premises Of his Er by way Of exclusive or
customary means Ofingress and egress;
■ Ee is charged, while on his way to or from his place Of
employment or at his home, or during this employment
with some duty or special errand connected with his
employment; and
■ 4. Where the Er as an incident Of the employment provides
the means Of transportation to and from the place Of
employment.
● Acts Of Ministration / Personal Comfort
○ Acts performed by an Ee Within the time and space limits Of his
employment, to minister personal comfort, such as satisfaction Of
Page 108 of 9
 his thirst, hunger, or other physical demands, or to protect him
from excessive cold, shall be deemed incidental to his
employment and injuries suffered in the performance Of such act
shall be considered compensable and arising Out Of and in the
course Of employment.
● Rest or refreshments
○ GR: Injuries Of Ee during a break for rest or refreshment are
compensable.
○ XPN: When the nature Of Ee's work requires him to remain awake.
(Azucena, 2013)
● Lunch Period
○ GR: Injuries Of an Ee is compensable although they occurred
during lunch period where eating Of lunch was within Er's
consent or knowledge, express or implied.
○ XPN: Not work connected and occurred in a place where he had
no right to be (Azucena, 2013).
● Union Meeting
○ Injuries suffered at a union meeting during lunch period are not
compensable if not recognized by the Er in the CBA (Azucena,
2013).
● Extra-premises/Shuttle Bus Rule
○ Injuries suffered by the Ee, while on board a means Of
transportation provided by the Er in going to or coming from
work, are compensable (Azucena, 2013).
● While living- boarding or lodging on ERs premises or at the
workplace
○ GR: Injuries suffered, while living boarding or lodging on Er's
premises or at the workplace:
■ Pursuant to an express or implied requirement contract Of
hiring or
■ Reasonably attributable or incidental to the nature Of
employment or conditions under which he lives in the
performance Of his duties, are to be considered as having
arisen Out Of and in the course Of employment.
○ XPNs
■ When the residence Of Ee in Er's premises is merely
permissive and not required.
■ Injury suffered results from a risk or danger which is not
reasonably incidental to the employment (Azucena, 2013).
● While Travelling
○ Whether the injury results from a risk which is inherent in the
nature Of employment or reasonably incidental thereto or to
which the Ee is specially exposed; and
○ Whether the Ee was engaged in the exercise Of some functions or
duties reasonably necessary or incidental to the performance Of
the contract Of his employment; or
○ If not actively engaged, whether Ee was at the place where he was
authorized or required by such contract to be (Azucena, 2013).
 NOTE: Authorized deviation from route, schedule, or travel is
compensable (Azucena, 2013).
● Dual Purpose Doctrine
○ This doctrine considers as compensable the injury that an Ee
Sustains while on a trip undertaken for the benefit Of the Er even
if in the course Of such business trip the Ee pursues a personal
purpose (Azucena, 2013).
● ERs sponsored activities
○ Injuries suffered by an Ee during recreational activities and other
Er sponsored activities are compensable if such activities were for
the Er's exclusive benefit or when the Er had some interest in
those activities.
● Acts of Force Majeure
○ GR: Not compensable when the Ee has not been exposed to a
greater danger than usual.
○ XPN: "Positional and local risks doctrine" whereby the Ee, because
Of his duties, was exposed to a special or peculiar danger from the
elements, that is, one which is greater than that to which Other
persons in the community are exposed. The unexpected injury
sustained by reason Of such elements is considered as arising Out
Of and in the course Of employment. (Azucena, 2013)

Q: Abraham Dino works as a delivery man in a construction supply establishment

owned by Abraham Julius. One day, While Dino was making reports on his delivery, he
had an altercation With Julius; irked by the disrespectful attitude Of Dino, Julius pulled
out his gun and shot Dino, hitting him in the spinal column and paralyzing him
completely. Julius was prosecuted for the act.
a. Is the disability suffered by Abraham Dino compensable?
b. IfAbraham Dino recovers compensation from the SIF, can he still recover
from Abraham Julius damages in the criminal case? Why?

A: YES. The injury was sustained by Abraham Dino in his place Of work and while in the
performance Of his Official functions-

b. NO. Under Art. 179 Of the LC, as amended by PD 1921, the liability Of the State Insurance
Fund under the Employees' Compensation Program shall be exclusive and in place Of all
other liabilities Of the Er to the Ee or his dependents or anyone otherwise entitled to recover
damages on behalf Of the Ee or his dependents

Q: Wilfredo, a truck driver employed by a local construction company, was injured in an

accident While on assignment in one Of his employers project in Iraq. Considering that
his injury was sustained in a foreign country, is Wilfredo entitled to benefits under the
Employees' Compensation Program?

A: YES. Filipinos working abroad in the service Of an Er, domestic or foreign, who carries on in
the Philippines any trade, business, industry, undertaking or activity Of any kind, are covered
by the ECP. (Sec. 5, Rule 1, ECC Rules; LC Art. 175).

Page 110 of 9
Q: New Filipino Maritime Agencies, Inc. (NFMA), for and on behalf of st. Paul Maritime
Corp. (SPMC), employed Simon Datayan Il (SIMON) as deck cadet on board the vessel
Corona Infinity for a period Of nine months. On Dec. 30, 2007, Raymond Ocleasa saw
SIMON jump overboard after being reprimanded due to poor performance in a fire and
emergency drill. After a few weeks, SIMON was declared missing and was presumed
dead. A suicide note was found in his belongings. SIMON's father (DATAYAN) filed for
death benefits but his claim was unheeded. He then filed a complaint against the
company and averred that SIMON died during the term Of his employment, thus
entitled for such benefit. NFMA on the Other hand argued that SIMON's death was a
result of SIMON's deliberate act. Is NFMA liable for the death benefits of SIMON?

A: NO. NFMA is not liable for the death benefits Of SIMON. As claimant for death benefits,
DATAYAN has the burden to prove by substantial evidence that his son's death is work-
related and that it transpired during the term Of his employment contract. In this respect,
DATAYAN was able to discharge his burden. The burden then shifted to the company to
prove that SIMON's death was due to his deliberate act.

NFMA discharged their burden to prove that SIMON committed suicide. The Master's Report
as well as the Statement Of Facts described the events that occurred prior to, during and
after the incident when SIMON went overboard. Furthermore, the suicide note found was
informative as to why SIMON committed suicide (New Filipino Maritime Agencies Inc, etal, v.
Datayan, G.R. No. 202859, Nov. 11, 2015).

b) POEA-Standard Employment Contract

● Conditions
○ The seafarers work must involve the risks described in Sec 32-A of
the POEA-SEC
○ Disease was contracted as a result of the seafarer’s exposure to
the described risks
○ Disease was contracted within a period of exposure and under
such other factors necessary to the contract
○ There was no notorious negligence on the part of the seafarer
● Benefits
○ Disability
■ Elements
● Injury or illness is work related
● It occurred during the term of the seafarers contract
■ Kinds
● Permanent Disability - inability of a worker to
perform his job for more than 120 days, regardless of
whether or not he loses the use of any part of the
body
● Total disability - disablement of an ee to earn wages
in the same kind of work of similar nature that he
was trained for, accustomed to perform, or any kind
of work which a person of his mentality and
attainments could do
Does not require that the Ee be completely disabled.,
or totally paralyzed. What is necessary is that the
 injury must be such that the employee cannot
pursue his usual work and earn from it. A total
disability is considered permanent if it lasts
continuously for more than 120 days.
● Liabilities of Er - during term of contract
○ shall continue to pay the seafarer his wages during
the time he is on board the ship
○ if the injury or illness requires medical and/or dental
treatment in a foreign port, shall be liable for the full
cost of such medical, serious dental, surgical and
hospital treatment as well as board and lodging until
the seafarer is declared fit to work or to be
repatriated. Continues even after repatriation if still
required.
○ Seafarer shall also receive sickness allowance from
his Er in an amount equivalent to his basic wage
computed from the time he signed off until he is
declared fit to work or the degree of disability has
been assessed by the company-designated
physician.
■ Note.
■ Sickness allowance shall not exceed 120 days
■ Payment of sickness allowance shall be made
on a regular basis but not less than once a
month
○ Seafarer is entitled to reimbursement of the cost of
medicines prescribed by the company-designated
physician
○ In case of permanent total or partial disability of the
seafarer caused by either injury or illness, the seafarer
shall be compensated in accordance with the
schedule benefits enumerated in Sec 32 of POEA-
SEC
● Treatment is on an Out-patient
○ Company shall approve the appropriate mode of
transportation and accommodation
○ The reasonable cost of actual traveling expenses
and/or accommodation shall be paid subject to
liquidation and submission of official receipts and/or
proof of expenses; and
○ For this purpose
■ General Rule: Seafarer submit himself to a
post-employment medical examination by a
company-designated physician within 3
working days upon his return
■ Exception: physically incapacitated to do so, in
which case, a written notice to the agency
within the same period is deemed as a
compliance.
Page 112 of 9
 ■ Report regularly to the company-designated
physician as prescribed by the physician and
agreed by the seafarer. Failure to comply,
forfeiture of the right to claim the above
benefits.

Q: C’s duties as a motorman on board MV SL involved strenuous physical activities

for his 18-hour shift, and exposed him to all kinds of noxious gases, harmful fumes
and excessive noise while inside the engine room. Due to this, he experienced
pain while urinating and discharged blood in his urine. Eventually, he was
declared unfit to work and medically repatriated to the Philippines. Instead of
being fetched by his employer, he just went straight home to Bataan. His wife
informed GPH via mobile phone that he could not personally report to the office
due to his medical condition. C got himself examined, where it was revealed that
there is a mass in his left kidney. His left kidney was surgically removed where it
was confirmed that he had renal cell carcinoma. Is C entitled to disability
benefits?

A: Yes. Under the law, these are the requirements for compensability: (1) the seafarer
must be submitted to a mandatory post-employment medical examination within 3
working days upon return; (2) the injury must have existed during the term of
contract; and (3) the injury must be work related.

When he arrived in the Philippines. C was already ill and no longer in good physical
condition to go back to Manila for treatment. Immediately, petitioner was subjected
to series of laboratory and tests to properly diagnose his ailment.

It was shown that illness existed during employment. C’s disease could not have
occurred overnight after repatriation. Petitioner was already suffering from illness
while at sea.

Q: Company physicians opined that G’s leukemia was not work-related. He sought
a second opinion from an independent physician and was certified that it was
work-related. G claimed for disability benefits against GPH but denied the same
on the ground that G was not able to substantially prove the relation between his
illness and his former position as an Ordinary Seaman. Can G claim benefits?

A: Yes. Settled rule is that for illness to be compensable, it is not necessary that the
nature of the employment be the sole and only reason for the illness suffered by the
seafarer. It is sufficient that there is a reasonable linkage between the disease suffered
by the employee and his work to lead a rational mind to conclude that his work may
have contributed to the establishment, or at the very least, aggravation of any pre-
existing condition he might have had.

Q: EE denied having hypertension and diabetes during a pre-employment medical

examination. EE had a stroke while on board the vessel. EE was repatriated and
while under the care of a company-designated physician, he repeatedly denied
that he had any past history of diabetes and hypertension.
Two months after he filed a complaint, Dr. L, issued a medical opinion state the EE
must be considered permanently disabled and same opinion indicated that EE
admitted to having had a long history of hypertension and diabetes. Is EE entitled
to total and permanent disability benefits occasioned by work-related illnesses?

A: No. Under the law, claims arising from pre-existing illness when attended by an EE’s
fraudulent misrepresentation is barred. Petitioner knowingly and fraudulently
misrepresented himself as not afflicted with hypertension and diabetes during his
PENE and after repatriation while being treated by the company-designated
physician.

● When allowed to pursue an action for Total or

Permanent Disability Benefits
○ Company-designated physician failed to issue a
declaration of his fitness to engage in sea duty even
after the lapse of 120 days and there is no indication
that further medical treatment would address his
TTD, hence, justify an extension of the period to 240
days
○ 240 days had lapse without certification issued by
the company-designated physician
○ company-designated physician declared he is fit for
sea duty within 120 days or 240 day period, as the
case may be, but this physician of choice and the
doctor choses under the law are of contrary opinion
○ company-designated physician acknowledged that
he is PPD but other doctors who he consulted, on his
own and jointly with his employer, believed his
disability is not only permanent but total as well
○ the company-designated physician recognized that
he is totally and permanently disabled but there is a
dispute on the disability grading
○ c-phyisician determined the medical condition is not
compensable or work-related under the law but his
doctor-of-choice and the third doctor selected under
the law found otherwise and declared him unfit to
work
○ declared him totally and permanently disabled but
the employer refuses to pay him the corresponding
benefits
○ declared him partially and permanently disabled
within the 120 day or 240 day period but he remains
incapacitated to perform his usual sea duties after
the lapse of said periods
● Case law states that without a valid final and definitive
assessment from the company-designated physician within
120/240 day period, the law already steps in to considered
petitioners disability as total and permanent. Thus, a

Page 114 of 9
 temporary disability becomes total and permanent by
operation of law.
● Third-doctor Referral - if the physician appointed by the
seafarer disagrees with the company-designated
physician’s assessment, the opinion of a third doctor may
be agreed jointly between the employer and the seafarer to
be the decision final and binding on them. Non-compliance
with this procedure would lead to the conclusion that the
determination of the company-designated physician would
prevail.

Q: Balasta was hired as an Able Seaman by his employers. While on board, Balasta
experienced chest pains, fatigue, and shortness Of breath. The incident requires
further medical examination as Balasta was repatriated back in the Philippines.
Balasta was diagnosed With heart disease Which requires bypass operation.
Balasta claimed for disability benefits against his employers but denied the same
on the ground that Balasta's illness is not work related. Can Balasta claim for
disability benefits?

A: YES. Regarding the issue of compensability, it has been the Court's consistent
ruling that in disability compensation, "it is not the injury which is compensated, but
rather it is the incapacity to work resulting in the impairment Of one's earning
capacity." Moreover, "the list Of illnesses/ diseases in Sec. 32-A does not preclude other
illnesses/diseases not so listed from being compensable. The POEA-SEC cannot be
presumed to contain all the possible injuries that render a seafarer unfit for further sea
duties."

The company-designated physician must arrive at a definite assessment Of the

seafarers fitness to work or permanent disability within the period Of 120 or 240 days,
pursuant to Art. 198 of the Labor code and Rule X, sec. 2 of the AREC. If he fails to do so
and the seafarer's medical condition remains unresolved, the latter shall be deemed
totally and permanently disabled (Fil-Pride Shipping Company, Inc. et al, v. Balasta,
G.R. No. 193047, March 3, 2014)

Q: Mark Anthony Saso was engaged by respondent 88 Aces Maritime Services,

Inc. as a fisherman in Taiwan. Saso had an accident While on board Of the vessel
and in the process Of hauling their catch, fracturing his right thigh. As a result, he
had to be operated. He was there after repatriated to the country. He presented
himself on the Office Of the he was merely told that he should first shoulder his
continued medical expenses subject to reimbursement only upon proper
documentation and was referred to Dr. Rafael Recto the company designated
physician Who allegedly failed to pronounce Whether petitioner was fit to work
Within the 120-day period. This prompts the respondent to consult Dr. Magtira
Who, declared that he was permanently disabled With Grade 10 impediment
based on POEA contract. Is Saso entitled to total and permanent disability
benefits?

A: NO. Under the provisions Of the Labor Code and POEA SEC, the seafarer upon sign-
off from his vessel, must report to the company designated physician within 3 days
from the arrival for diagnosis and treatment The duration Of the treatment shall in no
case exceed 120 days for the Company-physician to declare whether the seafarer was
fit to engaged in sea or not. However, if the 120 days initial period is exceeded because
the seafarer needs further medication it can be extended up to the maximum period
Of 240 days

In the case at bar, 120 days had not yet lapsed thus, the claim for Total or Permanent
Disability Benefits is premature. However, non entitlement to Total or Permanent
Disability Benefits does not rule Out his right to the Other benefits provided for under
the POEA-SEC such as reimbursement for medical expenses, sickness allowance and
benefit for partial disability caused by a work-related injury (Mark Anthony Saso v. 88
Aces Maritime Service et al, GR. No. 211638, Oct 7, 2015).

Q: Pedro is a Filipino TWO weeks after he commenced to work aboard the vessel,
he was brought to the ship doctor when he slipped on a metal stairway, fell down
and hit his abdomen and chest on a metal pipe and was diagnosed to have a
"sebaceous cyst to the right Of the umbilicus." Under a local anesthesia, his cyst
was removed, and the lesion was closed with three (3) stitches.

After 2 months, his employer terminated his services and was repatriated to the
Philippines on July 6, 2010. Pedro now seeks compensation for his sebaceous cyst
as an occupational disease. TO support his claim, he presented his Medical
Examination that he was "fit to work" before the Start Of his employment, hence,
the cyst was caused by his employment Is Pedro entitled to disability benefits?

A: NO. A sebaceous cyst is not included under Sec. 32 Of the 2000 POEA Amended
Standard Terms and Conditions Governing the Employment Of Filipino Seafarers on
Board Ocean-Going Vessels. However, illnesses not listed as an occupational disease
are disputably presumed to be work-related. Nevertheless, seafarers must prove
through substantial evidence the correlation between their illness and the nature Of
their work for their claim for disability benefits to prosper.

Q: Mabunay was hired by Sharpe Sea as an oiler for a period Of nine (9) months. A
day after boarding, Mabunay slipped and hit his back on the purifier, While he
was cleaning. When he awoke, his back was numb and he had difficulty getting
up. Despite the persistent pain in his back, Mabunay contiiiiiéd working for two
(2) days, until the Chief Engineer allow ed him to have a medical checkup when
the ship docked in Nanjing, China. He was declared unfit to work by his attending
physician and was eventually repatriated.

On April 30, 2009. Mabunay reported to Sharpe Sea' s office and was told to report
to a company-designated physician. He was diagnosed With "Cervical
Spondylosis; Thoracolumbar Spondylosis; and Mild chronic compression fracture".
The doctor recommended that Mabunay undergo a discectomy. On NOV. 24,
2009, Mabunay underwent surgery and was observed that he "tolerated the
procedure well."

The LA ruled in Mabunay•s EWor and directed Sharpe Sea to pay him permanent
and total disability benefits. It rejected Sharpe Sea's claim that its company
Page 116 of 9
designated physicians assessed Mabunay With a disability rating Of Grade 8 since
it was not supported by the records. The NLRC upheld the LA's findings that the
records were bereft Of evidence to support Sharpe Sea's claim.

on Nov. 29, 2011, the NLRC modified its decision by reducing the award Of
USS60,OOO.OO it earlier granted to Mabunay, to USS16,795.OO, corresponding to
a Grade 8 disability rating The NLRC noted that Sharpe Sea attached a medical
report dated Aug. 18, 2009 from Dr. Cruz, Which supported its claim that a
company-designated physician had diagnosed Mabunay With a Grade 8 disability.
Is Mabunay entitled to permanent and total disability benefits?

A: YES. With the company-designated physicians' failure to issue either a fit-to-work

certification or a final disability rating within the prescribed periods, respondent's
disability was rightfully deemed to be total and permanent.

A company-designated physician is expected to come up with a definite assessment

Of a seafarer's fitness or lack Of fitness to work or to determine the seafarer's degree
Of disability within a period Of 120 or 240 days from repatriation. Clearly, Dr. Cruz, Dr.
Castillo, or any Other company-designated physician failed to issue respondent either
a fit-to-v.rork certification or a final disability rating after his operation and before the
lapse Of 240 days from his repatriation.

Nonetheless, even if this Court accepted petitioners' explanation on the belated

submission Of the disability rating into evidence, it is worthy to note that Dr. Cruz only
issued an interim disability rating. Magsaysay Maritime Corp. stated that an interim
disability grading is merely an initial prognosis and does not provide sufficient basis
for an award Of disability benefits. (Sharpe Sea Personnel. Inc. v. Macario Mabunay, Jr.,
G.R. No. 206113, Nov 6, 2017, as penned byJ. Leonen)

Q: Smith Bell Manning hired Esteva as a seafarer for nine (9) months. He
underwent a prescribed medical examination and was pronounced fit to work.
While he was onboard the vessel, Esteva began to suffer back pains. He
underwent x-ray and was diagnosed With lumbar disc prolapse.

According to the Injury Illness Report, his condition required specialist treatment
and possible operation. Dr. Watson declared Esteva to have a temporary total
disability and unfit for work and recommended immediate repatriation.
Wilhelmsen Ship Management also wrote a letter requesting that Esteva be
examined by the company designated physician in the Philippines. Esteva
returned to the Philippines and reported to his employer.

The company-designated physician, Dr. CruzBalbon, issued a Medical Certificate

indicating that Esteva was given medications for Potts disease, a form Of
tuberculosis Of the spine. She prescribed that Esteva take at least one (I) year of
treatment.

In the Medical Certificate, Esteva's suggested disability grading was Grade 8, With
2/3 loss Of lifting power. Esteva consulted another doctor, Dr. Reyes-Paguia, Who
issued another Medical Certificate. Esteva consulted another doctor, Dr.
RaymUiidO, an orthopedic surgeon. The physician issued a Medical Report which
showed Esteva to be ambulatory but walking With a limp and his condition Will
no longer allow him to return as an able-bodied seaman. Is Esteva entitled to total
disability benefits?

A: YES. The entitlement Of an overseas seafarer to disability benefits is governed by

law, the employment contract, and the medical findings. Sec. 20, (3) Of the POEA
Standard Employment Contract States that If a doctor appointed by the seafarer
disagrees with the assessment, third doctor may be agreed jointly between the
Employer and the seafarer. The third doctor's decision shall be final and binding on
both parties."

The assessment referred to in this provision is the declaration Of fitness to work or the
degree Of disability. It presupposes that the company designated physician came up
with a valid, final, and definite assessment on the seafarers fitness to work before the
120-day or 240-day period expires. The SC has held that despite the wording Of the
provision in Sec. 20 Of the POEA Standard Employment Contract, the referral Of
disputed medical assessment to a third doctor is mandatory.

However, as the one contesting the company designated physician's findings, it is the
seafarer's duty to signify the intention to resolve the conflict through the referral to a
third doctor. If the seafarer' does not contest the findings and fails to refer the
assessment to a third doctor, "the company can insist on its disability rating even
against a contrary opinion by another physician." Securing a third doctor's opinion is
the duty Of the employee, who must actively or expressly request for it (Esteva v.
Wilhelmsen Smith Bell Manning, et al, GR Na 225899, July 10, 2019, as penned byJ.
Leonen)

Q: Jara was hired by Orient Hope as an engine cadet on board M/V Orchid Sun. On
its way to Oman, M/V Orchid Sun sank Off Muscat on July 12, 2007. lara sustained
leg injuries. On May 29, 2008, the company-designated physician suggested that
his disability grading is Grade I I.

On March 6, 2008, Jara filed a complaint With the Labor Arbiter, insisting that he
was entitled to total permanent disability benefits amounting to USS60,OOO.OO.
Is Jara entitled to permanent and total disability compensation considering that
there was a Grade 11 disability grading given by the company-designated
physician?

A: YES. lara is entitled to permanent and total disability compensation despite the
Grade Il disability grading given by the company designated physician. The Court
finds that the company-designated physician's failure to issue a final and definitive
medical assessment within the 240-day extended period transformed the
respondent's disability to permanent and total.

In Island Overseas Transport Corporation v. Beja, this Court clarified that: If the
maritime compensation complaint was filed prior to Oct 6, 2008, the rule on the 120-
day period, during Which the disability assessment should have been made in
accordance with Crystal Shipping Inc. v. Natividad, that is, the doctrine then prevailing
Page 118 of 9
before the promulgation Of Vergara on Oct. 6, 2008, stands; if, on the other hand, the
complaint was filed from Oct. 6, 2008 onwards, the 240-day rule applies. (Orient Hope
Agencies, Inc v. MichaelJara, G.R No. 204307,June 6, 2018, as penned byJ. Leonen)

Q: After suffering an Epileptic Seizure With post-fit neurological deficit, Atraje

was repatriated back to the Philippines and was referred to the company-
designated doctor for further medical evaluation and treatment After completing
his treatment, Atraje continued to suffer from shoulder and neck pain. Thus, he
consulted an independent specialist Who declared him permanently unfit to
resume his duties as a seaman.

Atraje later filed a complaint for permanent and total disability benefits against
his employers. The latter argued that since Atraje failed to comply With the third
doctor rule, the assessment Of the company designated doctor should prevail.

Meanwhile, the Panel Of Voluntary Arbitrators noted that While Atraje initiated
submitting to examination by a third doctor, there was silence on the part Of his
employers. Hence, it held that Atraje could not be faulted anymore if the
appointment of a third physician was deemed waived in this

Does non-compliance With the third doctor rule prejudice Atraje's claim for
disability benefits?

A: NO. Under sec. of the 2010 POEA SEC, "If a doctor appointed by the seafarer
disagrees with the assessment. a third doctor may be agreed jointly between the
Employer and the seafarer. The third doctors decision shall be final and binding on
both parties." The assessment refers to the declaration Of fitness to work or the
degree Of disability. It presupposes that the company designated physician came up
with a valid, final, and definite assessment on the seafarers fitness or unfitness to work
before the expiration Of the 120- or 240-day period.

In this case, the third doctor-referral provision does not apply because there is no
definite disability assessment from the company-designated physicians. (Magsaysay
Mol Marine,

Q. Teodoro Ventura, Jr. was employed by Crewtech Shipmanagement Philippines,

Inc., for its principal, as Chief Cook on board the vessel MV Maria Cristina Rizzo.
Ventura complained that he was having a hard time urinating that was
accompanied by lower abdominal pain. He Was medically repatriated and
referred to the company designated physician Who diagnosed Ventura's illnesses
to be "Cystitis With Cystolithiasis and Benign Prostatic Hyperplasia (BPI-I)," which
he declared to be not work-related.

Prior to the expiration of the 240-day period reckoned from his repatriation,
Ventura claimed that he was verbally informed by the company-designated
physician that it would be his last check-up session and that subsequent
consultations would be for his own account. Ventura was compelled to seek an
independent physician Of his choice, Dr. Tan, Who declared him to be
permanently disabled.
Ventura filed a complaint for total permanent disability benefits. Crewtech
argued that the failure to observe the procedure for the joint appointment Of a
third doctor negates the claim for the disability benefits. Is Ventura entitled?

A. NO. While the seafarer is not irrevocably bound by the findings Of the company
designated physician as he is allowed to seek second opinion and consult a doctor Of
his choice, Sec. 20 thereof further provides that any disagreement in the findings may
be referred to a third doctor jointly agreed upon by the parties, whose findings shall
be final and
● Death Benifits
○ GR: The seafarer's death should occur during the
term Of his employment.
○ XPN: The seafarer's death occurring after the
termination Of his employment due to his medical
repatriation on account Of a work related injury or
illness. This is based on a liberal construction Of the
2000 POEA-SEC as impelled by the plight Of the
bereaved heirs who stand to be deprived Of a just
and reasonable compensation for the seafarer's
death, notwithstanding its evident work-connection.
○ Payment
■ I. The amount Of Fifty Thousand US dollars
(US$50,OOO); and
■ 2. An additional amount Of Seven Thousand
US dollars (USS7,OOO) to each child under the
age Of twenty-one (21) but not exceeding four
(4) children, at the exchange rate prevailing
during the time Of payment. [Sec. 20(b-1), 2010
POEA - SEC/
○ Death caused by warlike activity
■ The compensation payable shall be doubled.
The employer shall undertake appropriate war
zone insurance coverage for this purpose.
■ NOTE: It is understood and agreed that the
benefits mentioned above shall be separate
and distinct from, and will be in addition to
whatever benefits which the seafarer is
entitled to under Philippine laws from the SSS,
OWWA, ECP, PHIC and Home Development
Mutual Fund (Pag-IBIG Fund). [sec. 20(b-2),
2010 POEA - SEC/
○ Other liabilities of Er
■ I. The employer shall pay the deceased's
beneficiary all outstanding obligations due the
seafarer under this Contract.
■ 2. The employer shall transport the
remains and personal effects Of the seafarer to
the Philippines at employers expense except if
Page 120 of 9
 the death occurred in a port where local
government laws or regulations do not permit
the transport Ofsuch remains.

In case death occurs at sea, the disposition Of

the remains shall be handled or dealt With in
accordance with the master's best judgment.

In all cases, the employer/master shall

communicate with the manning agency to
advise for disposition Of seafarers remains.
■ 3. The employer shall pay the beneficiaries
Of the seafarer the Philippine currency
equivalent to the amount Of One Thousand US
dollars (US$I,OOO) for burial expenses at the
exchange rate prevailing during the tim e Of
payment.
○ No compensation
■ I. Willful or criminal act; or
■ 2. Intentional breach Ofhis duties
■ Provided, that the employer can prove that
such injury, incapacity, disability or death is
directly attributable to the seafarer.

Q: Rodolfo L Racelis was recruited and hired by respondent United Philippine

Lines, Inc. (UPL) for its principal, respondent Holland America Lines, Inc. (HAL) to
serve as "Demi Chef De Partie" on board the vessel MS Prinsendam.

In the course Of his last employment contract, Rodolfo experienced severe pain in
his ears and high blood pressure causing him to collapse While in the
performance Of his duties. He consulted a doctor in Argentina and was medically
repatriated on for further medical treatment.

Upon arrival in Manila, he was immediately brought to Medical City, Pasig City,
where he was seen by a company-designated physician, Dr. Gerardo Legaspi, and
was diagnosed to be suffering from Brainstem (pontine) Cavernous Malformation.
He underwent surgery twice for the said ailment but developed complications
and died. Rodolfo's surviving spouse sought to claim death benefits but to no
avail. Is petitioner entitled to death benefits?

A: YES. Among other basic provisions, the POEASEC stipulates that the beneficiaries
Of deceased seafarer may be able to claim death benefits for as long as they are able
to establish that (a) the seafarers death is work-related, and (b) such death had
occurred during the term Of his employment contract.

While it is true that Brainstem (pontine) Cavernous Malformation is not listed as an

occupational disease under Sec. 32-A Ofthe 2000 POEA-SEC, Sec. 20 (B) (4) Of the
same explicitly provides that "[t]he liabilities Of the employer when the seafarer
suffers work-related injury or illness during the term Of his contract are as follows:
those illnesses not listed in Sec. 32 Of this Contract are disputably presumed as work
related

Also, while the general rule is that the seafarer's death should occur during the term
Of his employment, the seafarer's death occurring after the termination Of his
employment due to his medical repatriation on account Of a workrelated injury or
illness constitutes an exception thereto.

● Invalid Side Agreement

○ An agreement that diminishes an employee's
pay and benefits as contained in the
POEAapproved contract is void, unless such
subsequent agreement is approved by the
POEA (Azucena, Vol. I, 2016, p. 69)

Q: on Feb. 28, 2006, Magsaysay Maritime Corporation (Magsaysay), the local

manning agent Of Princess Cruise Lines, Limited, hired Bernardine De Jesus as an
Accommodation Supervisor for the cruise ship Regal Princess. On March 9, 2006,
Bernardine boarded Regal Princess and he eventually disembarked 10 months
later, or on Jan. 16, 2007, after his contract Of employment ended. Bernardine was
soon diagnosed With Aortic Aneurysm and on March 15, 2007, he had a coronary
angiography.

On March 21, 2007, he underwent a Left Axillofemoral Bypass. He died on March

26, 2007. Cynthia, Bernardine's Widow claimed that her husband suffered chest
pains While he was still aboard the Regal Princess. She claimed that he had
reported his condition, but he was not provided With medical attention.
Furthermore, he had also asked for medical attention upon his repatriation, but
his request was once again denied.

Furthermore, he had also asked for medical attention upon his repatriation, but
his request was once again denied. Is Berrnardine’s widow entitled to death
benefits?

A: YES, Bernardine's widow is entitled to death benefits. Sec. 20 (A) Of the POEA-SEC
requires that for a seafarer to be entitled to death benefits, he must have suffered a
work-related death during the term Of His contract.

However, Sec. 32-A Of the POEASEC acknowledges the possibility Of "compensation

for the death Of the seafarer occurring after the employment contract on account Of
a work-related illness" as long as the following conditions are met:
I. The seafarer's work must involve the risks described herein;
2. The disease was contracted as a result Of the seafarer's exposure to the
described risks;
3. The disease was contracted Within a period Of exposure and under such
Other factors necessary to contract it;
4. There was no notorious negligence on the part Of the seafarer.

Page 122 of 9
 Both labor tribunals found that Bernardiné first experienced chest pains while he was
still onboard the cruise ship, i.e„ during the term Of his employment contract. It was
likewise established that while Bernardine requested medical attention when he
started to feel ill and upon his repatriation, his requests were repeatedly ignored.

This Court concurs With the Labor Arbiter's observation that it was improbable for
Bernardine to have developed and died from a cardio-vascular disease within the two
(2) short months following his repatriation. (Magsaysay Maritime Corporation v.
Cynthia De Jesus, G R NO.

D. Labor Relations
1. Right to Self-Organization
a) Coverage
All persons employed in commercial, industrial and agricultural enterprises and
in religious, charitable, medical, or educational institutions, whether operating
for profit or not, shall have the right to self-organization and to form, join, or
assist labor organizations of their own choosing for purposes of collective
bargaining

● Private Sector:
○ All EEs commercial, industrial, agricultural, co-op, legitimate
contractors, religious, medical, educational whether for profit or
not
○ GOCCs without original charters
○ Supervisory – only among themselves
○ Alien EE – with valid working permit and reciprocity
○ Working Children
○ Homeworkers
○ Self-employed – only for mutual aid and protection
● Public Sector:
○ All rank and file including GOCCs with original charters

b) Eligibility for Membership

● Qualified
○ Those employed in commercial, industrial and agricultural
enterprises;
○ EEs of GOCCs WITHOUT original charters (Corpo Code);
○ EEs of religious, charitable, medical or educational institutions, for
profit or not
○ Aliens
■ Working in the country
■ With valid working permits issued by DOLE
■ Nationals of country granting same rights to Filipino
(Reciprocity)
 ■ Country of origin has ratified ILO certified by DFA
○ All other works for Mutual aid and protection not for collective
bargaining
○ Security guards
○ Workers in EPZs
○ Supervisory EEs are RELATIVELY prohibited in that they are not
allowed to join unions of rank and file by virtue of separation of
unions doctrine
● Not-qualified
○ EEs of GOCCs under Special charters
○ Managerial EEs;
○ Confidential EEs
■ Assist or acts in confidential capacity
■ Related to field of labor relations

■ *Note: Both must be met for disqualification

○ Members of a Cooperative;
■ Owners cannot bargain with themselves.
○ Members of International Orgs;
■ By doctrine of incorporation, they are immune from suit
c) Doctrine of Necessary Implication
■ An employee can be treated as confidential EEs due to his access of
confidential information in the field of labor relations
○ Assist or acts in confidential capacity
○ formulate, determine, and effectuate management policies
Related to field of labor relations
● Disqualification to apply
○ He must be in a fiduciary relationship with another to whom he
reports or whom he assists
○ The latter possesses labor-management relations information; and
○ He has access to that information by reason of his position
● Will not apply, if:
○ The information is business information; and
○ The information may be labor-management relations in nature
but the employee’s access thereto is accidental only
● Societe Internationale De Telecommunications v. Huliganga
Managerial employees are not eligible to join, assist or form any labor
organization. An exception to this prohibition is when the employer
extends the CBA benefits to the managerial employee as a matter of
policy or established practice.

d) Commingling or Mixed Membership

■ Not a ground for cancellation of registration of union.
■ The employee improperly included is automatically deemed removed by
operation of law.
■ Holy Child Catholic School v. Sto. Tomas
In case of alleged inclusion of disqualified employees in a union, the
proper procedure for an employer like petitioner is to directly file a

Page 124 of 9
 petition for cancellation of the union’s certificate of registration due to
misrepresentation, false statement or fraud

e) Effect of Inclusion as Members of Employees Outside of the Bargaining Unit

2. Bargaining Unit
● A group of EEs sharing mutual interest within a given employer unit, comprised
of all or less than all of the entire members of the employers unit(Rank and file
or Supervisory)
● Test in determining: C-G-C-E
○ Community or mutuality interest doctrine – treats of the similarity of
status, duties and responsibilities (substantial similarity)
○ Globe or will of the members doctrine – desire of the workers
○ Collective bargaining history doctrine – neither decisive or conclusive
○ Employment Status doctrine – acceptable mode, must have the same
status
● The basic test of an asserted bargaining unit's acceptability is whether or not it
is fundamentally the combination which will best assure to all employees the
exercise of their collective bargaining rights.

3. Bargaining Representative
● Refers to any legitimate labor organization duly recognized or certified as the
sole and exclusive bargaining agent of all the employees in a bargaining unit.
● Modes:
○ Request for SEBA Certification
■ A. Request for certification in UNORGANIZED establishment
with only one (1) LO
● Validated by submitting the names of ees covered by the
BU with majority signifying support and certification under
oath by the President of the LO all documents are true and
correct
● *Presumed to be valid unless contested underoath by
another member of the BU
● *Employer is only a bystander to the process of certification
● Failure to complete the requirements will be referred to
Election Officer for conduct of Certification Election.
● If Complete, issue a Certification as SEBA during the
conference and in EFFECT will enjoy all the rights and
privileges as a bargaining agent of the covered ees.
■ B. Request for certification in UNORGANIZED with more than
one (1) LO
● Refer to the Election Officer for the conduct of Certification
Election
■ C. Request for certification in ORGANIZED establishment
● Refer to Med-Arbiter for the determination of propriety of
conducting Certification Election
■ Certification Election – process of determining through secret
ballot the Exclusive bargaining agent in a BU for the purpose of
Collective Bargaining.
● WHO MAY FILE:
○ Legitimate Labor Organization
○ Independent Union
○ National Union/Federation who issued a charter to its
local chapter
○ Local Charter with Chapter Certificate
○ The employer, when requested by an LO to bargain
and majority of EBA is in doubt.
● Venue: Regional office which issued the petitioning union’s
certificate of creation of chartered local
■ PROHIBITIONS FOR Petition for Certification Election:
● GR: absence of duly registered CBA, PCE may be filed
anytime
● BAR RULES: (NO FILING OF PCE) SCNBC
○ 1. Statutory Bar Rule
■ 1 year bar from a valid conduct of certification,
consent, run-off, re-run election where no
appeal was made.
■ *Appeal is suspended until decision is final and
executory
○ 2. Certification Bar Rule or 1 Year Bar Rule
■ Union is certified as SEBA by virtue of Request
for SEBA Certification
■ Valid conduct of certification, consent, run-off
or re-run elections
■ *NOTE: A PCE may be filed by a rival union if
SEBA did not commence collective bargaining
within this period.
○ 3. Negotiations Bar Rule
■ ER and EBA commenced and sustained
negotiations in good faith within 1 year
○ 4. Bargaining Dead-lock Bar Rule
○ Incumbent EBA is party to conciliation or arbitration
or has become subject of a valid notice of strike or
lockout
○ 5. Contract Bar Rule
○ Collective Bargaining Agreement has been duly
registered with BLR
■ XPN:
■ 60 Days – Freedom Period prior to expiry of
CBA
■ Manifestation of employer to terminate CBA as
EBA no longer has majority representation
■ CBA contains below minimum standards fixed
by law
■ CBA does not foster industrial stability
Page 126 of 9
 ■ CBA registered during freedom period and
during pendency of representation case
■ documents are falsified, fraudulent or tainted
with misrepresentation
● Requisites for valid PCE:
○ 1. Legitimate Union
○ 2. Organized: PCE is filed within the freedom period
and compliance with 25% written support of
members of the BU
○ 3. Petition is not in violation of the Bar rules
● Grounds for denial
○ petitioner is not listed in the departments registry of
legitimate labor unions or that its registration
certificate has been cancelled
○ failure to submit a duly chartered certificate
○ petitioned filed before or after the freedom period
○ filed within 1 year from the date of a valid election
○ bargaining commenced and sustained within 1 year,
where bargaining deadlock exists
○ failure to submit 25% signature requirement
(organized)
○ non-appearance of petitioner for 2 consecutive
scheduled conference
○ absence of EE-ER between all members of the
petitioning union and employer

● Order of election
○ Granted:
■ not subject to appeal.
■ file protest on the conduct and results of the
certification
○ Denied
■ Unorganized
● Appeal to SOLE within 10 days from
receipt
■ Organized
● appeal to SOLE within 10 days from
receipt
○ The filing of memorandum of
appeal from the order or decision
of the Med-Arbiter stays the
holding of any certification
election
○ the decision of the SOLE shall
become final and executory after
10 days from receipt thereof. No
motion for reconsideration shall
be entertained.
■ Exclusion and exclusion
● all ees who are members of the BU 3 months prior to filing
are eligible to vote
● dismissed ee but has contested the legality of dismissal
■ Proclamation and certification of the election
● Within 24 hours from the final canvass of votes, there being
a valid election
● SEBA shall be proclaimed by Med-Arbiter
○ no protest was filed or if protest was filed but not
perfected within 5 day period for perfection of
protest
○ no challenge or eligibility issue was raised
● decision of Med-arbiter may be appeal to SOLE within 10
days
■ DOUBLE MAJORITY:
● First, validity of the conducted PCE (Majority of all eligible
voters in the BU)
● Second, Majority of the valid vote casts
■ CERTIFICATION ELECTION
● UNORGANIZED ESTABLISHMENT
○ Meaning no CBA yet or has agent in rank and file but
none in supervisory
○ 25% written support is no longer required for the
supervisory
○ Conducted immediately by med-arbiter upong filing
by LO
● ORGANIZED
○ Med-arbiter automatically conducts CE through
secret ballot
○ 25% signature of all employees in the BU is required
■ Failure of election
● vote casts is less than majority of the number of eligible
votes and there are no material challenged vots
● it shall not bar the filing of a motion for immediate holding
of another certification or consent election within 6 months
from date of declaration of failure
● RUN-OFF Election
○ Election between 2 highest number of votes received
in the CE
○ No union received majority of votes
○ Total of votes of all contending union equals to 50%
when added
○ Conducted within 10 days after CE
○ No-union option is no longer included
● RE-RUN ELECTION
○ Election to break tie
○ Includes no Union and one of the union
○ Failure of election (No majority)
○ Certification election is nullified
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 ● CONSENT ELECTION: Preferred choice
○ Agreed by the parties through secret ballot
■ Rule of employer - Mere bystander and may only participate:
● by being furnished a copy of the petition
● by providing the list of employees in the unit for pre-
election

4. Rights of Labor Organizations

Labor organization refers to any labor organization in the private sector registered or
reported with the Department
● To act as the representative of its members for purpose of collective bargaining
● to be certified as the exclusive representative of all ee in the BU for purposes of
CB
● To be furnished by the er, upon written request, with its annual audited
financial statements, including balance sheet and the profit and loss statement,
○ within 30 calendar days from the date of receipt of request after union
was certified as SEBA
○ within 60 calendar days before the expiration of the existing CBA or
during the CB negotiation
● to own property, real or personal for the use and benefit of the LO and its
members
● to sue and be sued in its registered name
● to undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not
contrary to law
● To collect reasonable membership fees, union dues, assessments, fines and
other contributions
● Note: The income and the properties of legitimate labor organizations,
including grants, endowments, gifts, donations and contributions they may
receive from fraternal and similar organizations, local or foreign, which are
actually, directly and exclusively used for their lawful purposes, shall be free
from taxes, duties and other assessments

a) Check Off, Assessment, and Agency Fees

● Check off
○ It is a method Of deducting from an Ee's pay at a prescribed
period, the amounts due the union for fees, fines and
assessments.
● Assessments
○ Payments used for a special purpose. Especially if required only for
a limited time. (Azucena, Vol.
○ Requisites to collect special assessment
■ General Rule: NO special assessments, attorney's fees,
negotiation fees or any Other extraordinary fees may be
checked Off from any amount due to an employee unless
there is:
● Authorization by a written resolution Of the majority
Of all members at the general membership meeting
duly called for that purpose;
 ○ Specify the amount, purpose and beneficiary
of deduction.
● Secretary's record Of the minutes Of the meeting;
● Individual written authorization for checkOff duly
signed by the employee concerned. (ABS-CBW
Supervisors Employees Union
■ Exception:
● For mandatory activities under the LC;
● For Agency Fees;
● When non-members Of the union avail Of the
benefits Of the CBA:
○ Non-members may be assessed union dues
equivalent to that paid by union members;
○ Only by board resolution approved by majority
Of the members in a general meeting called
for the purpose.
● Agency Fees
○ It is an amount equivalent to union dues, which a non-union
members pays to the union because he benefits from the CBA
negotiated by the union.
○ Requisites:
■ The EE is part of the BU
■ He is not a member of the union
■ He partook of the benefits of the CBA
○ Individual authorization required shall not apply to non-
members of the recognized CB agent with regards to
assessment of agency fees.
○ Unions' right to agency fees is neither contractual nor statutory
but quasi-contractual.
● Individual Written Authorization not required
○ Assessment from non-members of SEBA of agency fees
○ Deductions from mandatory activities
○ Withholding tax
○ EEs debt to ER which is already due and demandable
○ Judgement against the worker against debt incurred for food,
clothing shelter and medical attendance
○ Via court order
○ SSS, Philhealth and Pag-ibig

Q: A is employed by XYZ Company where XYZ Employees Union (XYZ-EUD is the

recognized exclusive bargaining agent. Although A is a member Of rival union
XYR-MU, he receives the benefits under the CBA that XYZ-EU had negotiated
With the company. XYZ-EU assessed A, a fee equivalent to the dues and Other
fees paid by its members but A insists that he has no Obligation to pay said
dues and fees because he is not a member Of XYZ—EU and he has not issued an
authorization to allow the collection. Explain Whether his claim is meritorious.
(2010 BAR)

A: NO. The fee exacted from A takes the form Of an agency fee which is sanctioned
by Art. 248 (now 259) (e), LC. The collection Of agency fees in an amount equivalent
to union dues and fees from Ees who are not union members is recognized under
the LC. The union may collect such fees even without any written authorization

Page 130 of 9
from the non-union member Ees, if said Ees accept the benefits resulting from the
CBA. The legal basis Of agency fees is quasi contractual. (Del Pilar Academy v. De/
Pilar Academy Employees Union, GR. NO. 170112, April 30, 2008)

b) Collective Bargaining
● Refers to a contract executed upon request Of either the employer or
the exclusive bargaining representative Of the employees
incorporating the agreement reached after negotiations with respect
to wages, hours Of work and all other terms and conditions Of
employment, including proposals for adjusting any grievances or
questions under such agreement
● The CBA is the law between the contracting parties and the Collective
Bargaining representative and the employer-company. Compliance with
a CBA is mandated by the expressed policy to give protection to labor.
● Jurisdictional Preconditions of collective Bargaining:
○ Possession Of the Status Of majority representation Of the
employees' representative
○ Proof Of majority representation
○ A demand to bargain.
■ NOTE: An employees duty to recognize and bargain
collectively with a union does not arise until the union
requests the employer to bargain.
● Unilateral changes in the implementation provisions Of the CBA cannot
be allowed without the consent Of both contracting parties. (Wesleyan
University-Philippines v. WUP Faculty
● Purpose. The goal Of Collective Bargaining is the making agreements
that will stabilize business conditions and fix fair standards Of working
conditions.
● Requisites
○ existing er-ee relationship
○ EBA has majority support from the BU
○ lawful demand to bargain made in accordance with the law
● Registration. Within 30 days from execution Of CBA, the thereto shall
submit the agreement to the Regional Office where the bargaining is
registered or where it principally operates. Multi-employer collective
bargaining agreements shall be filed with the Bureau.
○ Failure to register the CBA does not make invalid or
unenforceable. Once it is duly into and signed by the parties, a
CBA effective as between the parties or not it has been certified
by the BLR, Flour Mills Employees Association v. Flour Mills GR.
Nos. 58768-70, Dec. 29,
● Requirements
○ The application for CBA registration shall be accompanied by the
original and two duplicate of the following requirements:
■ CBA
■ A statement that the C BA was posted in at least two
conspicuous places in the establishment concerned for at
least five days before its ratification
■ Statement that the CBA was ratified by the majority Of the
Ees in the bargaining unit.
 ■ NOTE: CERTIFIED UNDER OATH
● Ratification
○ General Rule: The agreement negotiated by the employees' EBR
should be ratified or approved by the majority Of all the workers in
the bargaining unit. The proper ratifying group is not the majority
union but the majority Of all the workers in the bargaining unit
represented by the negotiation.
○ Exception: Ratification Of the CBA by the employees is not
needed when the CBA is a product Of an arbitral award by a
proper government authority [LC Art 278 (g), renumbered] or a
voluntary arbitrator (LC Art 275, renumbered).
● Effectivity
○ First CBA - depends upon the agreement of the parties
○ Renegotiated CBA - If within six (6) months from the expiry date
Of the Old CBA, then the new CBA Starts to take effect on the
date following such expiry date. If beyond six (6) months, the
retroactive date Will have to be agreed upon by the parties.
● Duration
○ Economic and Non-Economic Aspect — may last for a maximum
period Of 3 years after the execution Of the CBA
○ Representation Aspect — may last for 5 years. It refers to the
identity and majority Status of the union that negotiated the CBA
as the exclusive bargaining representative.

Q: When should bargaining begin and when should it end?

A: It begins when the three (3) jurisdictional preconditions are present, the
coLlective bargaining should begin within the 12 months following the
determination and certification Of the employees" exclusive bargaining
representative. The period is known as certification year.

The law encourages expeditious and good-faith negotiations but fixes no time limit
for completion Of the negotiation. The law dictates no deadline. It depends upon
the will and agreement Of the negotiating panels. (Alucena, vol. 2, 2016, p. 382-383)

(1) Economic Terms and Conditions

● Economic provisions include monetary value of:
○ Wage increases
○ loan benefits
○ bonuses
○ allowances
○ retirement plan and
○ other fringe benefits
(2) Non-Economic Terms and Conditions
● union security clauses
● grievance procedure
● labor-management cooperation schemes, and
● other provisions without monetary value
(3) Duty to Bargain Collectively

Page 132 of 9
● Mutual obligation of EE and ER has a duty to collectively bargain
for the purpose of negotiating an agreement with respect to
wages, hours of work and other terms and conditions of
employment.
● Executing a contract incorporating such agreements
● Not to compel other party to accept blindly
● Purpose:
○ Negotiating an agreement With respect to wages, hours Of
work and all Other terms and conditions Of employment;
○ Including proposals for adjusting any grievances or
questions arising under such agreement; and
○ Executing a contract incorporating such agreements if
requested by either party but such duty does not compel
any party to agree to a proposal or to make any concession.
(LC Art 263, renumbered)
○ 4. Negotiation over the terms Of a new contract or
proposed modifications, when an existing agreement is
validly opened for negotiations (Azucena, VOL 2, 2016, p.
374)
● Absence of CBA
○ In the absence Of an agreement or Other voluntary
arrangement providing for a more expeditious manner Of
Collective Bargaining, it shall be the duty Of employer and
the representatives Of the employees to bargain collectively
in accordance with the provisions Of the LC. (LC Art 262,
renumbered)

● When there is CBA

○ When there is a CBA, the duty to bargain collectively, in
addition to Art. 263, renumbered, shall mean that neither
party shall terminate nor modify such agreement during its
lifetime.
○ However, either party can serve a written notice to
terminate or modify the agreement at least 60 days prior
the expiration Of its 5th year.
○ NOTE: It shall be the duty of both parties to keep the Status
quo and to continue in full force and effect the terms and
conditions Of the existing agreement during the 60-day
period and/or until a new agreement is reached by the
parties — automatic renewal clause. (LC Art 264,
renumbered).
● Hongkong Bank Independent Labor Union v. HSBC 2018
Q: WON HSBC could validly enforce the credit-checking
requirement under its BSP-approved Plan in processing the
salary loan applications of covered employees even when the
said requirement is not recognized under the CBA during its
subsistence and even thereafter until a new agreement is
reached.

A:NO. The Plan was never made part of the CBA. Tolerating HSBC's
conduct would be tantamount to allowing a blatant
 circumvention of Article 253. It would contravene the express
prohibition against the unilateral modi

(4) Mandatory Provisions in the Collective Bargaining Agreement (CBA)

● GRIEVANCE MACHINERY
○ They shall establish a machinery for the adjustment and
resolution of grievances arising from
■ the interpretation or implementation of their CBA
and
■ the interpretation or enforcement of company
personnel policies.
● VOLUNTARY ARBITRATION
○ All grievances submitted to the grievance machinery which
are not settled within seven (7) calendar days from the date
of its submission shall automatically be referred to
voluntary arbitration prescribed in the CBA.
● PROVISION ON WAGE INCREASES
● NO STRIKE NO LOCKOUT CLAUSE
○ No strike or lockout shall occur during the effectivity of the
CBA. However, this only applies if the ground relied upon is
economic in nature. The “No Strike, No Lockout” clause is
inapplicable to prevent a strike or lockout which is
grounded on ULP.
● LABOR MANAGEMENT COUNCIL (LMC)

● What are the remedies in case of CBA deadlock? In case of a

deadlock in the negotiation or renegotiation of the collective
bargaining agreement, the parties may exercise the following
rights under the Labor Code:
○ Conciliation and mediation by the NCMB, DOLE.
○ Declaration of a strike or lockout, as the case may be
○ Referral of case to compulsory or voluntary arbitration

5. Unfair Labor Practices

● Not all unfair acts constitute ULP. Act complained of as ULP must have a
proximate and causal connection with:
○ Exercise of the right to self organization
○ Exercise of the right to collective bargaining
○ Compliance with the CBA
● Elements of ULP
○ Existing er-ee relationship between offender and offendor
○ Act complained of must be expressly mentioned an defined in the LC as
ULP
a) Nature and Aspect
● ART 258. Concept of Unfair Labor Practice and Procedure for
Prosecution Thereof. —
○ Unfair labor practices violate the constitutional right of workers
and employees to self-organization, are inimical to the legitimate
Page 134 of 9
 interests of both labor and management, including their right to
bargain collectively and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt industrial
peace and hinder the promotion of healthy and stable labor-
management relations.
○ Consequently, unfair labor practices are not only violations of the
civil rights of both labor and management but are also criminal
offenses against the state
○ Subject to the exercise by the President or by the SOLE of the
powers vested in them by Articles 263 and 264 of this Code, the
civil aspects of all cases involving unfair labor practices, which may
include claims for actual, moral, exemplary and other forms of
damages, attorney's fees and other affirmative relief, shall be
under the jurisdiction of the Labor Arbiter.
○ The Labor Arbiters shall resolve such cases within thirty (30)
calendar days from the time they are submitted for decision.
○ Recovery of civil liability in the administrative proceedings shall
bar recovery under the Civil Code.
○ No criminal prosecution may be instituted without a final
judgment finding that an unfair labor practice was committed,
having been first obtained. The final judgment in the
administrative proceedings shall not be binding in the criminal
case nor be considered as evidence of guilt but merely as proof of
compliance of the requirements therein set forth.
● Examples of ULP
○ Surface bargaining. — Defined as “going through the motions of
negotiating” without any legal intent to reach an agreement.

It involves the question of whether an employer’s conduct

demonstrates an unwillingness to bargain in good faith or is
merely hard bargaining
● Blue sky bargaining. — Making exaggerated or unreasonable
proposals.
● Featherbedding -
○ Practice caused and induced by a union of hiring more
workers than are needed to perform a given work.
○ Resorted to as response to laying off of workers occasioned
by introduction of machines, robots or improvements
● Yellow dog contract. — An agreement which exacts from workers
as a condition of employment, that they shall not join or belong to
a labor organization, or attempt to organize one, during their
period of employment or that they shall withdraw therefrom, in
case they are already members of a labor organization.
● Runaway shop. — Is an industrial plant that is moved by its
owners from one location to another to escape union labor
regulations or state laws. It may also be a relocation motivated by
anti-union animus rather than for business reasons.
● Contracting out. — It is only when the contracting out of a job,
work or service being performed by union members will interfere
 with, restrain or coerce employees in the exercise of their right to
self-organization that it shall be unlawful and shall constitute ULP.
● Company Union. — To initiate, dominate, assist or otherwise
interfere with the formation or administration of any labor
organization, including the giving of financial or other support to it
or its organizers or supporters.
● Boulwarism. — the tactic of making a "take-it-or-leave-it" offer in a
negotiation, with no further concessions or discussion

Q: Is there an exception where ULP is committed even if the act is not a Violation Of an
employee's right to self-organization?

A: YES. Dismissing or prejudicing an employee for giving testimony (regardless Of the

subject Of the testimony) under Art. 259 (f) Of the Labor Code.

Q: What is the condition precedent before criminal prosecution of ULP may be made?

A: A: There should be a finality Of judgment in a labor case finding that the respondent
indeed committed ULP.

NOTE: The judgment in the labor case cannot be used as evidence in the criminal case. It
should be noted that the evidence required in labor proceedings is only substantial evidence
while criminal cases need proof beyond reasonable doubt. Thus, the criminal charge needs
to be proven independently from the labor case.

A charge of ULP must include all acts of ULP. Splitting the cause of action is not allowed to
prevent harassing the employer with subsequent charges.

b) By Employers
● The following are the ULP committed by employers: (IC2Y-PD2VG)
○ Interference, restraint, or coercion
■ Any act that may reasonably tend to have an influence or
effect on the exercise of the right to self-organization by the
employee
■ Totality of Conduct doctrine may be applied to ascertain
whether the act of the employer constitutes interference,
restrain or coercion.
■ Interference is always ULP
■ Formation of union is not a valid ground to dismiss
■ It is ULP to dismiss a union officer or an employee for his
union activities

○ Yellow dog condition

■ A contract which exacts from a worker a condition of
employment that violated the exercise or the right to self-
organization.
■ Common stipulations in the Yellow Dog Contract:

Page 136 of 9
 ● A representation by the ee that he is not a member
of a union
● A promise that he will not join
● A promise that upon joining, he will quit
employment

○ Contracting Out Of services

■ GR: Not ULP as part of management prerogative to
protected business interest
■ XPN: ULP when contracting will interfere, restrain or coerce
an ee in the exercise of their right to self-organization.
○ Company unionism
■ a union favored by the company, assisted financially
○ Discrimination for or against union membership
■ discriminate in regards to wages, hours of work and other
terms and conditions of employment in order to encourage
or discourage membership in a union.
○ Discrimination because of testimony
■ ULP to dismiss an ee who files charges or gives or about to
give testimony under the Labor Code
○ Violation Of duty to bargain
■ An employer who refuses to bargain with the union and
tries to restrict its bargaining power is guilty of unfair labor
practice. In determining whether an employer has not
bargained in good faith, the totality of all the acts of the
employer at the time of negotiations must be taken into
account
○ Paid negotiation
○ Gross violation Of The CBA
■ Violate the duty to bargain collectively
■ Pay negotiations or atty fees to the union or its officers for
settlement of any issues in CB or others
■ Violate a CBA (Must be gross in character violations, flagrant
or malicious)
● The list above is not exclusive.
● As to violation of CBA. — It is ULP if what is violated is an ECONOMIC
provision of the CBA and that the violation is gross and flagrant;
otherwise, it is not ULP.
● As to jurisdiction
○ LA → NLRC → CA. — gross and flagrant violation of an economic
provision, a ULP
○ Grievance Machinery → VA → CA. — violation of a political or an
economic provision that is not gross and flagrant.
c) By Organizations
● RESTRAIN or COERCE
○ ULP to restrain or coerce exercise to right of self-
organization
● DISCRIMINATION
 ○ To cause or attempt an er to discriminate against an ee, including
against an ee to whom membership is denied
○ To terminate an ee union membership on any other ground other
than the usual grounds to terminate others
● DUTY TO BARGAIN COLLECTIVELY
○ ULP to refuse or violate the duty to bargain collectively with the er.
● FEATHERBEDDING DOCTRINE
○ Practice caused and induced by a union of hiring more workers
than are needed to perform a given work.
○ Resorted to as response to laying off of workers occasioned by
introduction of machines, robots or improvements
● DEMAND OR ACCEPTANCE OF NEGOTIATION OR ATTY FEES
● VIOLATIONS OF THE CBA (Gross in character, malicious or flagrant
economic stipulations)

6. Peaceful Concerted Activities

a) Strikes (Valid vs. Illegal)
● Temporary stoppage of work by the concerted action of the ee as a result
of an industrial or labor dispute
● Elements:
a. Temporary stoppage of work
b. Concerted activity
c. Labor Dispute
● Requisites of valid strikes:
a. must be based on valid grounds
i. Collective Bargaining deadlock (Economic Strike) – 30 days
cooling off
ii. ULP (Gross violations) (Political Strike) – 15 days cooling
period
b. Notice of strike filed with the NCMB-DOLE
c. Notice of strike vote to the NCMB at least 24 hours prior to the
taking of such vote by secret balloting, informing the said office
for the conduct of strike vote, date, place and time thereof.
d. Strike vote wherein a majority of the member of the union
approve the holding of strike through secret balloting in a
meeting called for the purpose,
e. Strike vote report submitted to NCMB-DOLE at least 7 days before
intended date of strike
f. Compliance with cooling off period, 15 days for ULP of the er, 30
days CB deadlock, except for union busting from date of notice of
strike is filed
g. 7 day waiting period/strike ban reckoned after submission of strike
vote report to NCMB-DOLE
● Illegal strike
a. non compliance with procedural but mandatory requisites
b. unlawful purpose
c. based on non strikeable grounds
i. inter-union or intra-union disputes
d. Didn’t bargain collectively first
Page 138 of 9
 e. Violated the no strike no lockout clause;
f. Failure to submit issues to grievance procedure and exhaust the
steps therein;
g. While C-M is ongoing at NCMB;
h. Based on issues already brought to arbitration;
i. Pending case involving same ground in the notice of strike;
j. In defiance of an assumption or certification or return-to-work
order;
k. In violation of a TRO or an injunction order;
l. After notice of strike converted to preventive mediation case;
m. Against prohibition by law;
n. By a minority union;
o. By an illegitimate union
p. By dismissed EEs
q. In violation of company code of conduct;
r. As protest rallies in front of government offices
s. As welga ng bayan
● Prohibited Activities. —
a. No labor organization or employer shall declare a strike or lockout
without first having bargained collectively or without first having
bargained collectively or without first having been obtained and
reported to the DOLE.

No strike or lockout shall be declared after assumption of

jurisdiction by the President or the SOLE or after certification or
submission of the dispute to compulsory or voluntary arbitration
or during the pendency of cases involving the same grounds for
the strike or lockout.

Any worker whose employment has been terminated as a

consequence of any unlawful lockout shall be entitled to
reinstatement with full backwages. Any union officer who
knowingly participates in an illegal strike and any worker or union
officer who knowingly participates in the commission of illegal
acts during a strike may be declared to have lost his employment
status: Provided, That mere participation of a worker in a lawful
strike shall not constitute sufficient ground for termination of his
employment, even if a replacement had been hired by the
employer during such lawful strike.
b. No person shall obstruct, impede, or interfere with, by force,
violence, coercion, threats or intimidation, any peaceful picketing
by employees during any labor controversy or in the exercise of
the right to self-organization or collective bargaining, or shall aid
or abet such obstruction or interference.
c. No employer shall use or employ any strike-breaker, nor shall any
person be employed as a strike-breaker.
d. No public official or employee, including officers and personnel of
the New Armed Forces of the Philippines or the Integrated
National Police, or armed person, shall bring in, introduce or escort
 in any manner, any individual who seeks to replace strikers in
entering or leaving the premises of a strike area, or work in place
of the strikers. The police force shall keep out of the picket lines
unless actual violence or other criminal acts occur therein:
Provided, That nothing herein shall be interpreted to prevent any
public officer from taking any measure necessary to maintain
peace and order, protect life and property, and/or enforce the law
and legal order. (As amended by Executive Order No. 111,
December 24, 1986)
e. No person engaged in picketing shall commit any act of violence,
coercion or intimidation or obstruct the free ingress to or egress
from the employer’s premises for lawful purposes, or obstruct
public thoroughfares. (As amended by Batas Pambansa Bilang
227, June 1, 1982)
● Liabilities of union officers and members
a. Union Officer
i. Knowingly participated and committed illegal acts =
dismissal
b. Union MEmber
i. Committed illegal acts = Dismissal

b) Picketing (PROTECTED)
● peacefully marching to and fro before an establishment carrying signs,
banners placards with the intent to inform the public of such dispute
● Requisites
○ peacefully carried out
○ no act of violence, coercion or intimidation attendant thereto;
○ ingress or egress of company should not be obstructed
○ public thoroughfares should not be impeded
○
c) Lockouts
● temporary refusal by an employer to furnish work as a result of an
industrial or labor dispute
○ Shutdown
○ Mass retrenchment and dismissal
○ Excluding employees who are members of union
● Requisites of valid LOCKOUT: same with strike except 4th majority vote
of members of BOD

d) Assumption of Jurisdiction by the DOLE Secretary

● When in his opinion, the labor dispute causes or will likely cause strike or
lockout in an industry indispensable to the national interest
○ Within 24 hours
○ Prior notice or hearing not required
○ Carries with return to work compulsory and immediate order
(automatic) *POLICE POWER
■ Valid ground for dismissal upon defiance
■ Period of defiance of RTW not material
● Participation in illegal strike: Liabilities
Page 140 of 9
 ○ Union Officers (Shop stewards)
■ Termination of all union officers who knowingly
participated
○ Ordinary Members
■ Has committed illegal acts during the strike
● Commission of ILLEGAL ACTS: LEGALITY IS IMMATERIAL
○ No person engaged in picketing shall shall commit any act of
violence, coercion or intimidation or obstruct free ingress to egress
from the employers premises for lawful purpose or obstruct public
thoroughfares
○ Commission of crimes and other unlawful acts in carrying out the
strike
○ Violation of any order, prohibiton or injunction issued by the SLE
or NLCR in re: assumption of jurisdiction
● Liability determined on an individual basis
● Only members who are identified having participated in illegal acts are
liable
● (Industries indespensible National interest cases)
○ Hospital, power, water, air traffic, recommended by TIPC. **NOT
EXCLUSIVE
● Either at his discretion or certify it to the NLRC for compulsory arbitration

Q: WON the return-to-work order of the SOLE was rendered moot when the NLRC
upheld the validity of the redundancy program

A: YES. When petitioner filed its Motion for Execution on pursuant to this Court's ruling there
was no longer any existing basis for the return-to-work order. This was because the SOLE's
return-to-work order had been superseded by the NLRC's Resolution. Hence, the SOLE did
not err in dismissing the motion for execution on the ground of mootness

Garcia v. Philippine Airlines upholds the prevailing doctrine that even if a Labor Arbiter's
order of reinstatement is reversed on appeal, the employer is obligated "to reinstate and pay
the wages of the dismissed employee during the period of appeal until reversal by the
higher court." There is no order of reinstatement from a Labor Arbiter in the case at bar,
instead, what is at issue is the return-to-work order from the SOLE

E. Telecommuting Act (RA 11165)

1. Definition [Sec. 3]
● Refers to work from an alternative workplace with the use of
telecommunications and/or computer technologies.

2. Telecommuting Program [Sec. 4]

● An employer in the private sector may offer a telecommuting program to its
employees on a voluntary basis, and upon such terms and conditions as they
may mutually agree upon such terms and conditions as they may mutually
agree upon.

Such terms and conditions shall not be less than the minimum labor standards
set by law, and shall include:
 ● 1) compensable work hours,
● 2) minimum number of work hours,
● 3) overtime
● 4) rest days, and
● 5) entitlement to leave bene

In all cases, the employer shall provide the telecommuting employee with
relevant written information in order to adequately apprise the individual of the
terms and conditions of the telecommuting program, and the responsibilities
of the employee.

3. Fair Treatment [Sec. 5]

● The employer shall ensure that the telecommuting employees are given the
same treatment as that of comparable employees and are given the same
treatment as that of comparable employees working at the time employer's
premises. All telecommuting employee shall:
○ Receive a rate of pay, including overtime and night shift differential and
other similar monetary benefits not lower than those provided in
applicable laws, and collective bargaining agreements.
○ Have the right to rest periods, regular holidays, and special non working
days
○ Have the same or equivalent workload and performance standards as
those of comparable workerat the employer's premises
○ Have the same access to training and career development opportunities
as those of comparable workers at the employer's premises, and be
subject to the same appraisal policies covering these workers
○ Receive appropriate training on the technical equipment at their
disposal, and the characteristics and conditions of telecommuting
○ Have the same collectible rights as the workers at the employer's
premises, and shall not be barred from communicating with workers'
representatives
● The employer shall also ensure that measures are taken to prevent the
telecommuting employee from being isolated from the rest of the working
community in the company by giving the telecommuting employee the
opportunity to meet with colleagues on a regular basis, and opportunity to
meet with colleagues on a regular basis, and allowing access to company
information

IV. Post-Employment
A. Employer-Employee Relationship
● It is in personam and involves the rendition of personal service by the employee, and
partakes of master and servant relationship.
● Its existence is a question of law and fact. In the 2016 Century Properties case, SC said
that the employment status of a person is defined and prescribed by law and not by
what the parties say it should be. It can not be negated by expressly repudiating it in a
contract.

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● In the 2011 Tongko case, SC aptly described the primary and controlling test in
determining the existence of an ER-EE relationship as the control over the
performance of the task of the one providing the service
1. Tests to Determine Employer-Employee Relationship
● FOUR-FOLD TEST: SWDC
○ 1. Selection and engagement of the ee
○ 2. Payment of wages or salaries
○ 3. Power to dismiss
○ 4. Power to control the employees conduct
■ Controlling, er controls or has reserved the right to control not
only as to the result of the work but also to the means and
method by which the same is to be accomplished

● Two-tiered test: cases where there are several parties alleged as employers
of one individual
○ 1. Control Test – not only to the result but also to the means and
methods
○ 2. Economic Reality Test or Economic Dependence test – w/n the
worker is dependent on the alleged employer for his continued
employment in that line of business
● Lu v. Enopia 2017. The fact that petitioner had registered the respondents with
SSS is proof that they were indeed his employees. The coverage of the Social
Security Law is predicated on the existence of an EER

It was established that petitioner exercised control over respondents. The

control test merely calls for the existence of the right to control, and not
necessarily the exercise thereof.

The payment of respondents' wages based on the percentage share of the fish
catch would not be sufficient to negate the EER existing between them.

Petitioner wielded the power of dismissal over respondents when he dismissed

them after they refused to sign the joint fishing venture agreement.
● Reyes v. Doctolero 2017. In Mamaril v. The Boy Scout of the Philippines, there
was no EER between BSP and the security guards assigned to it by an agency
pursuant to a Guard Service Contract. In the absence of such relationship,
vicarious liability under Article 2180 of the Civil Code cannot apply as against
BSP. Similarly, we find no EER between MCS and respondent guards. The
guards were merely assigned by Grandeur to secure MCS' premises pursuant to
their Contract of Guard Services. Thus, MCS cannot be held vicariously liable for
damages caused by these guards' acts or omissions.
● Loreche-Amit v. Cagayan De Oro Medical Center 2019.
● ECONOMIC REALITY TEST. The benchmark of economic reality is the
economic dependence of the worker on his employer.

WON Loreche-Amit was an employee of CDMC

● NO. CDMC does not exercise the power of control over petitioner. Petitioner
was working for two other hospitals aside from CDMC, not to mention those
other hospitals which she caters to when her services are needed. Such fact
 evinces that petitioner controls her working hours. On this note, relevant is the
economic reality test.

Thus, the fact that petitioner continued to work for other hospitals strengthens
the proposition that petitioner was not wholly dependent on CDMC.

Petitioner likewise admitted that she receives in full her 4% share in the Clinical
Section of the hospital regardless of the number of hours she worked therein.
The rule is that
a. where a person who works for another
b. performs his job more or less at his own pleasure,
c. in the manner he sees

No employer-employee relationship exists.

2. Kinds of Employment
a) Regular
● default employment status, usually desirable or necessary in the usual
business or trade of er
● Attained:
○ nature of work – usually necessary or desirable
○ period of service – 1 year continuous or broken service
○ probationary employment – when allowed to work after lapse or
probationary period
● Manner and method of payment of wage or salary is not material.

b) Casual
● incidental to the principal business and for a definite period made
known to the employee at the time of engagement
● Can be become regular after one year of service by operation of law
● Repeated rehiring makes him regular

c) Probationary
● 6 months is neither max or min
● Computed from the date of appointment up to the same calendar date
of the 6th month
● May be extended upon mutual agreement in writing by the parties
● Regular employee if allowed to work after lapse or period
● Regular employee, if there is no written contract, or if there is no
stipulation of probationary if there's contract
● Grounds for termination:
○ Just cause (twin notice)
○ Authorized Cause (twin notice)
○ Failure to qualify as regular ee in accordance with reasonable
standards made known at the start of employment ( only requires
service of written notice of dismissal informing probation is
terminated attaching the result of performance)
○ Termination should be done prior to lapse of probationary period

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 d) Project
● assigned to carry out a specific project or undertaking, the duration and
scope were specified at the time the employee was engaged for that
project
● Indicators:
○ duration is reasonably determinable
○ defined in an employment agreement is made clear to the
employee at the time of hiring
○ in connection with the project/undertaking for which he is
engaged
○ free to offer his services to others while not employed/awaiting
engagement
○ Report of termination submitted to DOLE ROF within 30 days
following separation
○ payment of completion bonus
● Rehiring shows ee is regular
● Security of tenure of until the term of project
● Regular if allowed to work after completion of project

e) Seasonal
● works or perform services which are seasonal in nature, work is for
duration of seasons,
● CAN BE REGULAR SEASONAL
○ Work or service that are seasonal in nature and employed for
more than 1 season
● Can file illegal dismissal, off-season means employment is deemed
suspended or on leave of absence, hence should be rehired next season.

f) Fixed-Term
● term freely and voluntarily agreed upon by the parties
● Requisities
○ fixed period agreed upon by the parties without any force, duress
or improper pressure being brought to bear upon the ee, absence
vitiating his consent
○ agreement is more or less on equal terms with no moral
dominance
● Regular:
○ allowed to work beyond fixed terms
○ successive renewals of fixed-period contracts

g) Floating Status
● Off detail
● Maximum of 6 months
● Constructive dismissal if lasts more than 6 months

3. Legitimate Subcontracting vs. Labor-Only Contracting

● Legitimate Subcontracting
○ Requisites:
 ■ Independent contractor carries on an independent business and
undertake the contract work on his own account, under his own
responsibility, according to his own manner and method, “free
from the control and direction of his employer or principal in all
matters with the performance of the work except as to the result
thereof;
■ Has substantial capital or investment in the form of tools,
equipment, machineries, work premises and other material which
are necessary to conduct business;
■ The service agreement ensures compliance with the all the rights
and benefits subcontractor under the labor law
○ Effects:
■ No employer-employee relationship exists between the owner of
the project and the employees of the independent contract. In
legitimate job contracting, the principal employer is considered
only an indirect employer
■ Note: That the principal employer will only be liable in case the
independent contract fails to pay the employees’ wages.
■ Note: The principal employer or indirect or statutory employer
shall have the right for reimbursement from the contractor.
■
● Labor only contracting is where the person supplying the workers to an
employer does not have substantial capital or investment in the form of tools,
equipment, machineries, work premises, among others, and the workers
recruited and placed by such persons are performing activities directly related
to the principal business of such employer. In such cases, the person or
intermediary shall be considered as merely an agent of the employer who shall
be responsible to the worker in the same manner and extent as if the latter
were directly employed by him.
● "Substantial capital" — refers to paid-up capital stock/shares at least P5M in
the case of corporations, partnerships and cooperatives; in the case of single
proprietorship, a net worth of at least P5M.
a) Elements
● No substantial capital or investment; in the form of tools, equipment,
machineries, work premises
● Workers placed are performing activities directly related to the principal
business of such employer
● Effects:
○ The employee of the project owner is held by the statute to be the
employer of the placed employees.
○ In sum, labor-only contracting creates an employee-employer
relationship between the employer and the contractor’s workers
for the protection of the laborers.
● Note: Labor-only contracting is proscribed by the labor code.
● The contractor or subcontractor does not exercise the right to control
over the performance of the work of the employee.

b) Trilateral Relationship

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 ● In legitimate contracting, there exists a trilateral relationship under
which there is a contract for a specific job, work or service between the
principal and the contractor or subcontractor, and a contract of
employment between the contractor or subcontractor and its workers.
Hence, there are three parties involved in these arrangements,
○ the principal which decides to farm out a job or service to a
contractor or subcontractor,
○ the contractor or subcontractor which has the capacity to
independently undertake the performance of the job, work or
service, and
○ the contractual workers engaged by the contractor or
subcontractor to accomplish the job work or service.

c) Solidary Liability
● In the event that the contractor or subcontractor fails to pay the wages
of his employees, the employer shall be jointly and severally liable with
his contract or subcontractor to such employees to the extent of the
work performed under the contract, in the same manner and extent that
he is liable to employees directly employed by him.
● Effects of Labor-only Contracting
○ Principal is deemed direct employer of contractor’s employees;
○ Contractor will be treated as agent of principal
○ Principal’s liability is comprehensive — all liabilities under labor
laws, not only to unpaid wages.

B. Termination of Employment by Employer

1. Just Causes - employee committed a wrongful act or omission
● 1. Serious misconduct (GRAVE) or willful disobedience
○ SERIOUS MISCONDUCT (GRAVE)
■ Act or omission is Serious
■ Related to the performance of duties
■ Unfit to continue working for the employer
○ INSUBORDINATION or Willful disobedience
■ Conduct must have been willful or intentional, characterized by a
wrongful perverse attitude
■ Order was reasonable and lawful company rule, regulation or
policy made known to the ee and must pertain to his duties

● 2. Gross and habitual neglect of duties

■ Negligence is gross or habitual in character
■ work-related as would make him unfit to work
○
○ GR: negligence must be both gross and habitual
○ XPN: negligence is gross and damage is substantial
○
○ ABANDONMENT OF WORK:
■ Failed to report for work or absent without valid or justifiable
reason
 ■ Cintention on the part of the ee to sever er-ee relationship by overt
acts
○ *No hearing required, 2 notices is required

● 3. Fraud or willful breach of trust and confidence reposed in him

○ FRAUD
■ 1. act, omission or concealment
■ 2. involves breach of legal duty, trust or confidence justly reposed
■ 3. in connection with the ee work
○ WILLFUL BREACH OF TRUST AND CONFIDENCE
■ 1. position of trust and confidence
■ 2. act justifying the loss of trust and confidence, real betrayal of
trust
■ 3. willful
■ 4. in relation to his work which would render him unfit to perform
it
○ must not be simulated
○ not used as subterfuge for causes which are illegal, improper or
unjustified
○ not arbitrarily asserted in the face of overwhelming evidence to the
contrary
○ must be genuine
○ First class, managerial employees – mere existence for believing would
suffice
○ Second class, fiduciary rank and file – requires proof of involvement

● 4. Commission of a crime
○ 1. crime or offense was committed by the ee
○ 2. against his employer, immediate family member, duly authorized
representatives

● 5. Analogous Causes
○ 1. Violation of company rules
○ 2. Theft
○ 3. Incompetence, inefficiency or ineptitude
○ 4. Failure to attain work quota
○ 5. Failure to comply with weight standards
○ 6. Attitude problem

● 6. Union officers participated in illegal strike

● 7. Union officers/members committed illegal acts during a strike
● 8. Union security clause - Requiring compulsory membership in the SEBA as a
condition for continued employment
○ REQUISITES:
■ 1. union security clause is applicable
■ 2. BU requesting for termination of employment due to
enforcement of USC provision in CBA
■ 3. sufficient evidence to support unions decision
○ XPN
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 ■ members of other union
■ Religious objectors, confidential ee

2. Authorized Causes - a ground which the law itself allows

● COMMON REQUISITES:
○ 1. good faith in effecting termination
○ 2. termination is a matter of last resort
○ 3. Two separate written notices on both ee and DOLE at least 1 month
prior to intended date of termination
○ 4. Separation pay
○ 5. Fair and reasonable criteria in ascertaining who will be terminated

● 1. Installation of labor saving device – 1 month pay or 1 month pay for ever year
of service w/c is higher
○ UNIQUE REQUISITES:
■ 1. superfluous positions or services
■ 2. positions or services are in excess of what is reasonably
demanded by the enterprise
■ 3. adequate proof of redundancy

● 2. Redundancy - 1 month pay or 1 month pay for ever year of service w/c is
higher
○ UNIQUE REQUISITES:
■ 1. reasonably necessary and likely to prevent losses
■ 2. losses must be substantial, serious, actual and real, if expected,
reasonably imminent
■ 3. proved by sufficient and convincing evidence
■ 4. good faith for the advancement of its interest and not to
circumvent security of tenure
○
● 3. Retrenchement - 1 month pay or 1/2 month pay for ever year of service w/c is
higher
○ UNIQUE REQUISITES:
■ 1. reasonably necessary and likely to prevent losses
■ 2. losses must be substantial, serious, actual and real, if expected,
reasonably imminent
■ 3. proved by sufficient and convincing evidence
■ 4. good faith for the advancement of its interest and not to
circumvent security of tenure
○
● 4. Closure or cessation of business Not due to serious business loses or
financial reverses - 1 month pay or 1/2 month pay for ever year of service w/c is
higher

● 5. Closure or cessation of business due to serious business loses or financial

reverses – NO Separation PAY
○ UNIQUE REQUISITES:
■ Independently Audited financial statement necessary
 ● 6. Disease – TWIN NOTICE
○ REQUISITES:
■ 1. ee found to be suffering from any disease
■ 2. continued employment ir prohibited by law or prejudicial to his
health or to co-employees
■ 3. medical certificate issued by competent public health officer
that the disease of such nature or stage is incurable within 6
months

3. Due Process
a) Twin Notice Requirement
● The first written notice should contain:
○ The specific causes or ground for termination
○ Detailed narration of the facts and circumstances that will serve as
basis for the charge against the employee. A general description
of the charge will not suffice; and
○ A directive that the employee is given opportunity to submit a
written explanation within a reasonable period

○ "Reasonable period" should be construed as a period of at least

● After determining that termination of employment is justified the
employer shall serve the employee a written notice of termination
indicating that:
○ all circumstances involving the charge against the employee have
been considered; and
○ the grounds have been established to justify the severance of their
employment.
○
● The foregoing notices shall be served personally to the employee or to
the employee's last known address

b) Hearing
● After serving the first notice, the employer should afford the employee
ample opportunity to be heard and to defend himself with the assistance
of his representative if he so desires.
● "Ample opportunity to be heard" means any meaningful opportunity
given to the employee to answer the charges against him and submit
evidence in support of his defense, whether in a hearing, conference or
some other fair, just and reasonable way. A formal hearing or conference
becomes mandatory only
○ a) when requested by the employee in writing or
○ b) substantial evidentiary disputes exist or a company rule or
○ c) practice requires it, or
○ d) when similar circumstances justify it.
● Dela Torre v. Twinstar Professional Protective Services 23 Jun 2021
○ Doctrinal Rule
○ The award of nominal damages, which by its nature, arises from
the determination of whether the employee's rights were violated

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 or not in an illegal dismissal case cannot be deemed to be covered
by a Quitclaim.
● Bance v. University of St. Anthony 03 Feb 2021. Bance's dismissal was
valid, but procedural due process was not observed, entitling her to
nominal damages.

4. Termination of Contract of Migrant Workers Under RA 8042 as amended by RA

10022
● In case of termination of overseas employment without just, valid or authorized
cause as defined by law or contract, or any unauthorized deductions from the
migrant worker's salary, the worker shall be entitled to the full reimbursement
of his placement fee and the deductions made with interest at twelve percent
(12%) per annum, plus his salaries for the unexpired portion of his employment
contract
● Termination of employment of OFWs takes place in the following instances:
○ a. Pre-termination of employment contract with approval of employer;
○ b. Discharge for a valid cause;
○ c. Suffered injury or illness; or
○ d. Death
● Skippers United Pacific Inc. v. Doza 2012. The OFW can pre terminate his
employment contract which is akin to resignation. However, if the employer
failed to submit substantial evidence that indeed the OFW voluntarily pre-
terminated his contract; then the OFW is deemed illegally dismissed. The best
proof of pre-termination is a written resignation
● Lamadrid v. Cathay Pacific Airways 23 Jun 2021. Lamadrid's termination was
not commensurate to the infraction committed. Therefore, Lamadrid was
illegally dismissed from service
○ She is entitled to the payment of full backwages and separation pay in
lieu of reinstatement since the latter is no longer feasible considering the
time that has lapsed and the strained relations between the parties.

C. Termination of Employment by Employee

1. Resignation vs. Constructive Dismissal
● Termination by employee: RESIGNATION
○ Voluntary – without just cause
○ Written resignation letter at least 30 days before effectivity
■ Liable for damages if not complied
■ No constructive dismissal
● REQUISITES:
○ Tender of resignation letter
○ Notice to the er at least one month
○ Written acceptance by the er
● Involuntary – with just cause
○ No written resignation required
○ Constructive dismissal
○ REQUISITES:
■ Serious insult by the employer or his rep on the honor and person
of ee
■ Inhuman and unbearable treatment accorded to ee
 ■ Commission of a crime or offense against the ee or his family
■ Analogous causes

● CONSTRUCTIVE DISMISSAL
○ 1. An involuntary resignation resorted to when continued employment is
unreasonable or unlikely
○ 2. a demotion in rank or diminution in pay
○ 3. clear discrimination, insensibility or disdain by an ER which becomes
unbearable leaving the EE no choice but to forego his employment
● TEST: whether a reasonable person in the EE position would have felt
compelled to give up his position under the circumstance. An act of dismissal
but to appear as if it were not. Dismissal in disguise.
● Constructive dismissal is distinguished from illegal dismissal in that in the
latter, intent to dismiss is clearly expressed by the ER. In the former however,
ER NEVER indicates that he is terminating the EE.
● The unilateral and arbitrary reduction of the work day scheme that significantly
reduced employees’ salaries is a form of constructive dismissal.
● A college professor that was later appointed as a laboratory custodian,
divesting him of his teaching load, was constructively dismissed. (Divine Word
College of Laoag v. Mina 2016)

D. Preventive Suspension
● Legally imposed upon an errant employee while he is undergoing investigation
for certain serious offense. There has to be a serious or imminent threat against
the life or property of ER or his co-employees.
○ Maximum of 30 days, extension only for justifiable reasons and to pay
wages
○ EE not required to reimburse upon reversal or decides to dismiss him
after investigation
○ Constructive dismissal if more than 30 days
○ The notice of preventive suspension cannot be considered as adequate
notice to explain
○ Reassignment or transfer as remedial measure. — The purpose of
reassignments is no different from that of preventive suspension which
management could validly impose as a disciplinary measure for the
protection of the company's property pending investigation of any
alleged malfeasance or misfeasance committed by the employee.

E. Reliefs from Illegal Dismissal

● 1. reinstatement without loss of seniority rights and other privileges
○ LA declared – self executory and immediate even during appeal
● 2. Full backwages, inclusive of regular allowance
○ Bustamante Doctrine – full backwages meaning without deductions
○ COMPONENTS:
■ 1. Salaries or wages at the wage rate during dismissal
■ 2. Allowances and other benefits regularly granted
○ UP TO AGE 60 ONLY
○ LIMITATIONS ON BACKWAGES: 1 year, 2 years or 5 years
■ 1. dismissal is deemed too harsh a penalty
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 ■ 2. ER acted in good faith
■ 3. no evidence the ER dismissed the EE

● 3. Other benefits or their monetary equivalent

○ Others:
○ 1. separation pay in lieu of reinstatement –
■ Doctrine of strained relations
■ Impossible, impracticable, not feasible or unwarranted
■ EE decides not to re reinstated
■ Moot and academic due to supervening events
■ Prevent further delay in execution to the prejudice of the EE
■ Other circumstances: inimical to ERs interest; not in the best
interest of parties; ER is prejudiced by ER continued employment;
it will not serve prudent purpose

■ Amount in lieu:
● 1. 1 month pay or 1 month for every year of service w/c is
higher
● 2. allowances that the EE has been receiving on regular
basis

● *Salary prevailing at the end of the period of putative

service
● *Payment in separation pay is in addition to backwages
●
○ 2. award of penalty in the form of nominal damages – just/authorized
cause without due process
○ 3. fixed period – only up to the unexpired portion of the fixed term
○ 4. damages and attorney fees
○ 5. financial assistance even if legal in exchange for long years of service
and other considerations
○ 6. imposition of legal interest on separation pay, backwages and other
monetary awards
○
● MONEY CLAIMS ARISING FROM ER-EE RELATIONSHIP
● Based on:
○ Labor code
○ Other special laws
○ Jurisprudence
○ Employment Contract
○ Voluntary employer policy or practice
○ CBAs

F. Retirement
● GR: Employees dismissed for just cause are generally entitled due to vested rights
● EXC: Where just cause termination proscribes the claim of retirement pay as cited in
the retirement plan
● Retirement has been defined as a withdrawal from office, public station, business,
occupation, or public duty. It is the result of a bilateral act of the parties, a voluntary
agreement between the employer and the employee whereby the latter, after
 reaching a certain age, agrees and/or consents to sever his employment with the
former.
● Under the Labor Code, only unjustly dismissed employees are entitled to retirement
benefits and other privileges including reinstatement and backwages. Since
petitioner’s dismissal was for a just cause, he is not entitled to any retirement bene
● ***An employee in the private sector who did not expressly agree to the terms of an
early retirement plan cannot be separated from the service before he reaches the age
of 65 years. The employer who retires the employee prematurely is guilty of illegal
dismissal, and is liable to pay his back wages and to reinstate him without loss of
seniority and other benefits unless the employee has meanwhile reached the
mandatory retirement age, in which case he is entitled to separation pay pursuant to
the terms of the plan, with legal interest on the backwages and separation pay
reckoned from the
● However, where the employee has been informed and had consented, as when in
accepting the employment offer, he has assented to all existing rules, regulations and
policy of the employer in the employment contract, and furthermore, he did not
object to the compulsory age of retirement in the Retirement Plan, he is deemed
bound thereto. (Banco de Oro Unibank v. Sagaysay 2015)
● Jurisprudence is replete with cases discussing the employer's prerogative to lower the
compulsory retirement age subject to the consent of its employees.
● In Pantranco North Express, Inc. v. NLRC, the Court upheld the retirement of the
private respondent therein pursuant to a CBA allowing the employer to compulsorily
retire employees upon completing 25 years of service to the company.
● In Progressive Development Corporation v. NLRC, the retirement plan, which allowed
the employer to retire employees who had rendered more than 20 years of service,
was declared valid and enforceable even though it was not embodied in a CBA. In that
case, the Court concluded that the employees, who were hired before the execution
of the employer's retirement plan, were bound by it because the retirement plan was
expressly made known and accepted by them
● In contrast, the case of Jaculbe v. Silliman University did not allow the application of a
lower retirement age. The petitioner in the said case was employed sometime in 1958
while the retirement plan, which automatically retired its members upon reaching
the age of 65 or after 35 years of uninterrupted service to the university, came into
being in 1970. The said retirement plan was not applied to the petitioner because
there was no agreement to which the latter assented.
● Similarly, the case of Cercado v. UNIPROM Inc., involved a non-contributory retirement
plan which provided that any employee with twenty (20) years of service, regardless of
age, may be retired at his option or at the option of the company. The said plan was
adopted while the petitioner therein was employed earlier. There was no voluntary
acquiescence to UNIPROM's early retirement age option on her part.
● On the other hand, in Obusan v. PNB, the petitioner, who was hired by PNB in 1979,
was deemed covered by its retirement plan adopted in 2000. Considering that on
February 21, 2001, PNB had informed all of its officers and employees about the said
retirement plan, the said plan was then registered with the BIR and was later
recognized by the Philnabank Employees Association in its CBA. Despite the proper
dissemination of information, no one questioned the retirement plan. Hence, the
Court deemed it valid and effective as due notice of the employer's decision to retire
an employee was adequately provided

Page 154 of 9
 ● Retirement of Part-time Faculty. Under the rule of statutory construction of
expressio unius est exclusio alterius, Bernardo's claim for retirement benefits cannot
be denied on the ground that he was a part-time employee as part-time employees
are not among those specifically exempted under RA No. 7641 or its Implementing
Rules. (Dela Salle Araneta U v. Bernardo 2017)

V. Jurisdiction and Remedies

A. Labor Arbiter
● Official in the arbitration branch of the NLRC
○ Has no injunctive power
○ Has no appellate jurisdiction
○ Er-Ee relations
○ LA – MEMORANDUM OF APPEAL TO NLRC (10 days) – MR – RULE 65 TO CA –
RULE 45 TO SC
○
○
1. Jurisdiction of Labor Arbiter vs. Jurisdiction of Regional Director

LABOR ARBITER REGIONAL DIRECTOR

Original and exclusive jurisdiction on

cases involving:
a. ULP
b. Termination Dispute
c. Wages
d. Rates of pay Money claims not exceedings P5K,
e. Hours of work arising from Er-Ee relationship and the
f. Other terms of employment, claimant does not seek reinstatement.
claims for damages arising from
Er-Ee relationship, legality of
strikes and lockouts; and
g. All other claims arising from Er-Ee
relationship involving an amount
exceeding P5K.

LA decides cases within 30 calendar days Initiated by sworn complaints filed by

after submission of the case by the any interested party
parties for decision

Appealable to NLRC Appealable to NLRC

● CASES:
○ ULP
■ All cases of ULP whether committed by ER or LO
■ Civil aspects only of ULP
○ ILLEGAL DISMISSAL CASES
 ■ Conflict between VA and LA – LA prevails
■ VA has jurisdiction only when there is express agreement by the parties
to CBA
○ MONEY CLAIMS 5K+
■ Regardless of amount when asserted in illegal dismissal case(remedy of
reinstatement is proper)
■ Less than 5k – DOLE RD
○ CLAIMS FOR ACTUAL, MORAL, EXEMPLARY AND OTHER FORM OF DAMAGES
ARISING FROM ER-EE RELATIONSHIP
○ CASES INVOLVING LEGALITY OF STRIKES AND LOCKOUTS
■ XPN:
● Assumed cases – DOLE SECRETARY OR CERTIFY TO NLRC FOR
COMPULSORY ARBITRATION
● INJUNCTION – NLRC
● IF SUBMITTED TO VOLUNTARY ARBITRATION
○ WAGE INCREASE/WAGE DISTORTION IN UNORGANIZED NO VOLUNTARILY
SETTLED BY PARTIES
■ XPN: ORGANIZED - VA
○ CONTESTED CASES UNDER EXCEPTION CLAUSE IN ART 12(B)
■ contests the findings of the labor regulations officer and raises issues
thereon;
■ In order to resolve such issues, there is a need to examine evidentiary
matters; and
■ Such matters are not verifiable in the normal course of inspection.
○ ENFORCEMENT OF COMPROMISE AGREEMENTS WHEN THERE IS NON-
COMPLIANCE
■ To enforce compliance
■ To nullify if there is prima facie evidence that settlement was obtained
through fraud, misrepresentation, or coercion
○ ISSUANCE OF WRIT OF EXECUTION TO ENFORCE DECISIONS OF VA OR
PANEL OF VA, IN CASE OF ABSENCE OR INCAPACITY
○ MONEY CLAIMS OF OFWS INCLUDING DEATH AND DISABILITY BENEFITS
AND FOR AMEO DAMAGES
■ All claims with a sign of peso
● - XPN: POEA
■ Recruitment violation or violations of conditions of license
■ Disciplinary actions cases and other special cases against foreign
principals and against land based OFWs and seafearers
○ OTHER CASES PROVIDED BY LAW
■ Employees in GOCCs – without original charters
■ Alien parties – Choice of law by parties
■ Priest and ministers – non-ecclesiastical affair
■ Employees of COOP - arising from termination
■ Counter-claim of ERs against EEs – arising from termination
● CASES WHERE LA HAS NO JURISDICTION
○ Claims for damages arising from breach of non-compete clause and other post-
employment prohibitions – R. COURT
○ Claims for payment of cash advances, car, appliance, other loans – Regular
Courts
○ Dismissal of corporate officers and their monetary claims – RTC
Page 156 of 9
 ○ MATLING DOCTRINE: status or relationship of the parties or the nature of the
question that is subject of their controversy
○ Entities immune from suit
○ Doctrine of forum non conveniens – regular courts
○ Quasi-delict or tort cases – regular courts
○ Criminal and civil liabilities arising from violations of certain provision of LC –
regular courts
○ Constitutionality of CBA provisions – regular courts

2. Requisites to Perfect an Appeal With the National Labor Relations Commission

● Decisions, awards or order of LA shall be F&E unless appealed to NLRC within 10
cal days from receipt thereof.
● In case of decisions or resolutions of RD pursuant to Art 129, within 5 cal days.
● If last day falls on a weekend or holiday, move to the next working day
● No motion or request for extension shall be allowed
● Grounds for appeal:
○ Prima facie evidence of abuse of discretion on the part of LA or RD;
○ Decision, award or order secured through fraud or coercion, including
graft and corruption;
○ If made purely on questions of law; and/or
○ If serious errors in the findings of facts are raised which may cause grave
and irreparable damage or injury to appellant;
● To be filed with the Regional Arbitration Branch of the Regional Office where
the case was heard and decided
● No appeal from interlocutory order shall be entertained. (Sec 10 Rule VI, supra)
● Requisites:
○ Filed within the reglementary period
○ Verified by the appellant in accordance to Sec 4 Rule 7 of RoC;
○ In the form of a memorandum of appeal which shall
■ i) State the grounds relied upon and
■ ii) The arguments in support thereof,
■ iii) The relief prayed for, and
■ iv) With a statement of the date the appellant received the
appealed decision, award or order;
○ In 3 legibly typewritten or printed copies; and accompanied by:
■ i) Proof of payment of the required appeal fee and
■ legal research fee;
■ ii) Posting of a cash or surety bond as provided in Sec 6; and
■ iii) Proof of service upon the other parties
○ Appeal from Decision involving monetary award may be perfected only
upon the posting of a bond (Sec 6) which shall either be in the form of
■ a) Cash deposit; or
■ b) Surety bond
■ Equivalent in amount to the monetary award exclusive of
damages and attorney’s fees.
■ In case of surety bond, the same shall be issued by a reputable
bonding company duly accredited by the Commission, and shall
be accompanied by original or certified true copies of the
following:
 ● a) a joint declaration under oath by the employer, his/her
counsel, and the bonding company, attesting that the bond
posted is genuine, and shall be effective until final
disposition of the case;
● b) an indemnity agreement between the employer-
appellant and bonding company;
● c) proof of security deposit or collateral securing the bond:
provided, that a check shall not be considered as an
acceptable security; and,
● d) notarized board resolution or secretary’s certificate from
the bonding company showing its authorized signatories
and their specimen signatures
● NO motion to reduce bond shall be entertained except on
● meritorious grounds, and only upon the posting of a bond
in a reasonable amount in relation to the monetary award.
● The mere filing of a motion to reduce bond without
complying with the requisites in the preceding paragraphs
shall not stop the running of the period to perfect an
appeal.
● Prohibited appeals:
○ Appeal from any interlocutory order of the LA denying a motion:
■ i) To dismiss;
■ ii) To inhibit;
■ iii) For issuance of writ or execution, or
■ iv) To quash writ of execution;
○ Appeal from the issuance of a certificate of finality of decision by LA
○ Appeal from orders issued by LA in the course of execution proceedings

3. Reinstatement and/or Execution Pending Appeal

● Sec 12 Rule XI, supra. — In case the decision includes an order of reinstatement,
and the employer disobeys the directive under the second paragraph of
Section 19 of Rule V or refuses to reinstate the dismissed employee, the Labor
Arbiter shall immediately issue writ of execution, even pending appeal,
directing the employer
○ a) to immediately reinstate the dismissed employee either physically or
at the option of the employer, merely reinstated in the payroll, and
○ b) to pay the accrued salaries as a consequence of such non-
reinstatement in the amount specified in the decision
● The Labor Arbiter shall motu proprio issue a corresponding writ to satisfy the
reinstatement wages as they accrue until actual reinstatement or reversal of
the order of reinstatement. (En Banc Resolution No. 11-12, Series of 2012)
● The Sheriff shall serve the writ of execution upon the employer or any other
person required by law to obey the same. If he/she disobeys the writ, such
employer or person may be cited for contempt in accordance with Rule IX.
● Sec 19(2) Rule V. In case the decision of the Labor Arbiter includes an order of
reinstatement, it shall likewise contain:
○ a) a statement that the reinstatement aspect is immediately executory;
and

Page 158 of 9
 ○ b) a directive for the employer to submit a report of compliance within
ten (10) calendar days from receipt of the said decision.
B. National Labor Relations Commission
● Administrative quasi-judicial body attached to the DOLE solely for program and policy
coordination. In charge of labor cases through compulsory arbitration.
● Composition:
○ 1 chairman and 23 commissioners (8 workers; 8 employer, 7 public sector)
● Adjudicatory powers exercised through its 8 divisions comprised of 3 members each

● JURISDICTION
○ EXCLUSIVE ORIGINAL JURISDICTION
■ Certified labor disputes causing or like to cause strike or lockout in an
industry indispensable to national interest, certified by SOLE or President
■ Injunction in ordinary labor disputes
■ Injunction in strikes or lockouts
■ Certiorari cases
■ Contempt cases

○ EXCLUSIVE APPELLATE JURISDICTION

■ All cases decided by LA
■ Cases decided by DOLE RD small claims
■ Contempt cases decided by LA (RegPer 5 Days)

○ EFFECT OF REVERSAL:
■ BERGONIO Rule: ER duty to reinstate is terminated. EE need not return
wages received prior to reversal.
■ WENPHIL RULE: Period of computing backwages should end on the
date that higher court reversed the LA’s ruling
■ ROQUERO DOCTRINE: EE is entitled to reinstatement wages(during
appeal) even if ruling is reversed
■ GARCIA DOCTRINE: EE not entitled to reinstatement wages if not fault
of the ER
■ ER not liable to pay reinstatement if order was given by NLRC on appeal
and later reversed
○ Remedies
■ Certiorari under Rule 65 filed with the CA
● Certified Cases
○ Cases certified or referred to the Commission for compulsory arbitration
dealing about national interest case.
○ A national interest dispute may be certified to the NLRC even before a strike is
declared since the code does not require the existence of a strike but only of an
industrial dispute.
○ Effects:
■ On intended or impending strike or lock out - automatically enjoined,
notwithstanding any motion for reconsideration or non-resolution of
such motion.
 ■ On actual strike or lockout - employees shall immediately return to
work and the employer shall immediately resume operations and
readmit all workers under the same terms and conditions
■ On cases already filed or may be filed - considered subsumed or
aborted by the certified case, except where certification specifies
otherwise
■ On other pending cases - the parties to a certified case, under the pain
of contempt, shall inform their counsels and the Division concerned of all
cases pending with the Regional Arbitration branches and the voluntary
arbitrators relative or incident to the certified case before it.
○
C. Court of Appeals
● MODE Petition for certiorari under RULE 65
○ Filed within 60 days from notice
● XPN: Ordinary appeal under RULE 43 from decisions of VA or panel of VA (10 days)
● MR is a pre-requisite before RULE 65 can be availed
● Rule 65 can still be availed even if decisions of lower court has already become final
and executory
● GUAGUA DOCTRINE: 10 calendar days reglementary period

D. Supreme Court
● MODE: Petition for certiorari under Rule 45 – errors of judgment
● Neypes Doctrine: Fresh period of 15 days from denial of MR

E. Bureau of Labor Relations

● JURISDICTION
○ Union matters
○ Collective bargaining registry
○ Labor education
● Exlcusive and Original
○ Inter-union
■ Validity/invalidity of SEBA, certification, election, consent election, run-off
election or re-run election
■ Such other disputes or conflicts involving the rights to self-organization,
union membership and collective bargaining between and among LLO.
○ Intra-union
■ Cancellation or nullification of election of union and workers association
officers
■ Audit/accounts examination of union or workers association funds
■ Validity/invalidity of union affiliation or disaffiliation
■ Validity/invalidity of voluntary recognition
■ Opposition to application for union or CBA registration
■ Violations or disagreements over any provisions of the constitution and
by-laws of union or workers association
■ Disagreements over chartering or registration of LO or the registration of
CBAs
■ Violations of rights and conditions of membership in a union or workers
association
■ Violations of the rights of LLO, except interpretation of CBA
Page 160 of 9
 ■ Validity/invalidity of impeachment/expulsion/suspension or any
disciplinary action meted against any officer and member, including non
compliance with reportorial requirements
○ All disputes, grievances or problems arising from or affecting Labor
management relations in all workplace,
■ Except arising from the implementation or interpretation of CBA
○ 15 working days to act on cases, subject to extension
● Cancellation of Registration of any LLO, whether local or national.
● Decision in an inter/intra union dispute may be appealed.
○ Rules on appeal
■ Formal requirements
● Under oath
● Consists of memorandum of appeal
● Based on either of the grounds
○ Grave abuse of discretion
○ Gross violation of the rules
○ With supporting arguments and evidence
■ Period - within 10 days from receipt of decision
■ To whom -
● BLR - If the case originated from the Med-Arbiter/RD
● SLE - If the case originated from the BLR
■ Where filed -Regional office or to the BLR, where the complaint
originated. Records are transmitted to the BLR within 24 hours from the
receipt of the memorandum of appeal.
● BLR DIRECTOR
○ ORIGINAL AND EXCLUSIVE JURISDICTION
■ 1. Complaints and petitions involving the application for registration, revocation
or cancellation of registration of Federations, national unions, industry unions,
trade union centers and their LC/CL and Mos.
■ 2. Request for examination of books of accounts
■ 3. Notice of merger, consolidation, affiliation and change of name or denial
thereof
■ 4.Registration/Deregistration of multi-employer CBAs
■ 5. Contempt cases
○ APPELLATE JURISDICTION
■ 1. Decisions from Med-Arbiters
■ 2. Vistorial Cases (examinations)
■ 3. Notice of merger
■ 4. Union registration related cases
■ 5. CBA related cases

F. National Conciliation and Mediation Board

1. Conciliation vs. Mediation

CONCILLIATION MEDIATION

An intervention by a neutral third party An intervention by a neutral third party

Conciliator relies on his persuasive The mediator starts advising the parties
 expertise and takes an active role in
assisting parties by trying to keep
disputants talking, facilitating other
procedural niceties, carrying messages
back and forth between the parties and
generally being a good fellow who tries
to keep things calm and forward-looking
in a tense situation.
or offering solutions or alternatives to the
problems with the end in view of
assisting them towards voluntarily
reaching their own mutually acceptable
settlement of the dispute.

It is the process where a disinterested
3rd party meets with management and
labor, at their request or otherwise,
during a labor dispute or in CB
conferences, and by cooling tempers,
aids in reaching an agreement.
It is when a 3rd party studies each side of
the dispute then makes proposals for the
disputants to consider. The mediator
cannot make an award no render a
decision.

● Availed of: Any party to a labor dispute

● Where to file: NCMB Central Office or any of its REgional Brances
● NOT a quasi-judicial agency
○ Cannot be elevated to CA under Rule 43
○ Conciliation,
■ Conciliator is given more power and authority in that he may not only
offer an opinion on the issue at hand but may actually make a binding
opinion thereon provided the parties stipulate in advance to this effect.
Conciliation is more formal.
○ Mediation normally facilitates deliberation or discussion of the issues between
the parties.
■ Preventive Mediation – a remedy to provide preventive mediation to
disputing parties.
● 1. Filing a notice or request of preventive mediation
● 2. Conversation of notice of strike/lockout into a preventive
mediation case
○ NCMB has authority to convert a notice of strike/lockout into a preventive
mediation case
■ 1. issue raised in notice to strike/lockout is not strikeable in character
■ 2. parties voluntary asked for the conversion
■ 3. parties to a labor dispute mutually agree to have it subject to PMP
○ Conversion effects to dismissal of notice to strike/lockout

G. DOLE Regional Directors

● MODE OF APPEAL: DOLE D(MED-ARB) – APPEAL TO DOLE SEC – MR – RULE 65 TO
CA – RULE 45 TO SC
● ORIGINAL AND EXCLUSIVE JURISDICTION
○ 1. Visitorial cases (examinations of books of accounts of IU, LC/CL and WAs)
○ 2. Union registration-related cases:
● a. Application/Denial/Revocation or cancellation for union
registration of IU, LC and Was
○ 3. Denial of registration or petitions for deregistration of single-enterprise CBAs

Page 162 of 9
 ○ 4. Request for SEBA certification when made in unorganized with one
legitimate union
○ 5. Visitorial (inspection) cases under Art 37
○ 6. Visitorial (inspection) cases under Art 128 (either routine or through
complaint)
○ 7. OSH Violations
○ 8. Small money claims arising from labor standards not exceeding 5k and no
reinstatement
○ 9. Private recruitment and placement agencies (PRPAs) for local employment
■ - ApplicationsORDenials/Complaints for
suspensionORcancellation/Complaints for illegal recruitment/Petition for
Closure of Agency
○ 10. Notice of merger,consolidation, affiliation or change of name or denial therof
○ 11. Cases for Voluntary arbitration as ex-officio VA
■ Grievances from interpretation or implementation of CBA
■ Grievances from interpretation or enforcement of company personnel
policy – unresolved after exhaustion of GM
■ Cases referred by DOLE Secretary under DOLEs AIDA initiative
■ Upon agreement of parties to submit to EVAs for VA
● ORIGINAL JURISDICTION
○ 1. Visitorial Power
■ Access to employers records and premises at any time
■ Right to copy, question employees and investigate any fact
○ 2. Enforcement Power
■ Issue compliance order
■ Writs of execution
■ Stoppage or suspension of work due to grave and imminent danger to
health and safety
■ Require employers to keep and maintain employment records

H. DOLE Secretary
1. Jurisdiction
● Assumption of jurisdiction over cases where labor disputes are likely to cause a
strike or a lockout in an industry indispensable to national interest.
● Visitorial powers to over employers
● Issue a writ of execution of judgement
● Suspend the effects of termination pending resolution of the dispute in the
event of a prima facie finding by the DOLE before whom such dispute is
pending that the termination may cause a serious labor dispute or is in
implementation of a mass lay-off.
● Appellate jurisdiction
○ DOLE RD
■ Labor Standards enforcement cases under Art 128
■ OSH violations
■ Complaints against PRPAs for local employment
○ Med-Arbiters
○ BLR Director
○ POEA
■ Recruitment violations and other related cases (administrative)
 ■ Disciplinary action cases and other special cases (Foreign principal
vis OFW)
○ Exception:
■ Cases from LA appealable to NLRC
■ NLRC to CA
■ BLR Director to CA under Rule 65
■ DOLE RD appealable to NLRC
■ DOLE RD as EVAs to CA under Rule 43
■ VA to CA under Rule 43

2. Visitorial and Enforcement Powers

○ a. Vistorial – Exercised by DOLE RD
■ Access to Er’s records and premises at any time of the day or
night, whenever work is being undertaken
■ To copy from said records
■ Question any Ee and investigate any fact, condition or matter
which may be necessary to determine violations or which may aid
in the enforcement of the LC, and of any wage order, or rules and
regulation issued pursuant thereto.

■ Instances powers exercised under the LC

● Inspect the premises, books Of accounts and records Of any
person or entity covered by this Title; Require it to submit
reports regularly on a prescribed form; and
● Have access to Er’s records and premises to determine
violations of LC on recruitment and placements
● Conduct industrial safety inspections
● INquire into the financial activities of LLO and examine their
books of accounts upon the filing of the complaint under
oath and duly supported by the written consent of at least
20% of the total membership of the LO concerned.
○ b. Enforcement - Exercised by DOLE RD
■ Issue compliance orders
■ Issue writs of execution for the enforcement of their orders, except
in cases where the Er contests the findings of the labor officer and
raise issues supported by documentary proof which were not
considered in the course of inspection
■ Order stoppage of work or suspension of operation when non-
compliance with the law or rules and regulations poses grave and
imminent danger to health and safety of workers in the
workplace.
■ Require Er to keep and maintain such employment records as
may be necessary in aid to the visitorial and enforcement powers
■ Conduct hearings within 24 hours to determine whether:
● An order for stoppage of work or suspension of operation
shall be lifted or not
● Er shall pay the concerned EEs their salaries in case the
violation is attributable to his fault.
■ Instances power may not be used:
Page 164 of 9
 ● Case does not arise from the exercise of visitorial power
● When the Er-Ee relationship ceased to exist at the time of
the inspection
● If Er contests the finding of the labor officer and such
contestable issue is not verifiable in the normal course of
inspection
● Violations
○ Obstruct, impede, delay or otherwise render ineffective the orders of the
SOLE or his authorized representatives
○ Any government employee found guilty of, or abuse of authority, shall be
subject to administrative investigation and summary dismissal from
service.
● Limitations to other courts
○ No inferior court or entity shall:
■ Issue temporary or permanent injunction or restraining order
■ Assume jurisdiction over and any case
○ c. Appellate power or power of review - Exercised by DOLE Secretary
● *Powers are quasi-judicial in nature (DOLE RD)
● *Role of DOLE Secretary is appellate in nature
● SOLE can assume jurisdiction over a labor dispute, in relation to national
interest cases.
○ Upon own initiative or petition by any parties
○ Can be exercised without the necessity of prior notice or hearing given to
any party disputants

3. Power to Suspend Effects of Termination

● Upon prima facie finding:
○ Termination may cause serious labor dispute
○ Tb. termination is in implementation of mass lay-off

● Purpose: to bring parties back to status quo ante litem

● Result: immediate reinstatement of terminated EEs

4. Remedies
● Motion for reconsideration as a precondition for any further or subsequent
remedy, and then seasonably file certiorari under Rule 65.

I. Voluntary Arbitrator
● Any person accredited by the NCMB as such
● Any person named or designated in the CBA by the parties
● One chosen with or without the assistance of the NCMB, pursuant to a selection
procedure agreed upon in the CBA
● Any official that may be authorized by the SLE to act as a VA upon the written request
and agreement of the parties to a labor dispute
● Powers:
○ Hold hearings
○ Receive evidence
○ Take whatever action necessary to resolve the dispute including efforts to effect
a voluntary settlement between the parties
● AIDA – new administrative procedure for voluntary settlement of labor disputes
○ Separate from other dispute resolution, alternative to voluntary modes of
dispute
○ Either or both parties may use AIDA for any potential or ongoing dispute
○ If AIDA fails, submit to VA
○ DOLE Secretary does not assume the role of VA once he assumes over a labor
dispute
● Effect of decision
○ Shall determine the rights of the parties and their decisions shall have the same
legal effects as judgement of the courts.
○ Arbitral award is not subject to ratification of the employees.

● GRIEVANCE MACHINERY
○ MODE OF APPEAL: GM – AUTOMATIC ELEVATION TO VA – MR – RULE 43 TO CA
– RULE 45 TO SC
■ Interpretation or application of the CBA
■ Interpretation or enforcement of company personnel policies
■ Violations of any provisions of the CBA or company personnel policies
■ Unresolved grievances within 7 days is automatically elevated to the VA
after exhaustion of all internal procedures
■ Precondition before resorting to Court

● VOLUNTARY ARBITRATION
○ Refers to the mode of settling labor-management disputes through a third
party selected by the parties
○ Acts in quasi-judicial capacity, enjoys in law the status

● Jurisdiction
○ 1. Unresolved grievances from CBA
○ 2. Unresolved grievances from company personnel policy
○ 3. Violations of CBA which are not gross in character
○ 4. Other labor disputes, including ULP and Bargaining deadlock, upon
agreement of parties
■ Resorted before or at any stage of compulsory arbitration process
○ 5. National Interest Cases
■ Before or at any stage of the compulsory process, submit to VA
○ 6. Wage distortion in organized establishment
■ ER and union is required to negotiate to correct the wage distortion.
Refer to VA if unresolved.
○ 7. Unresolved grievances from Productivity Incentive Program
● Procedure
○ Submission Agreement - Where the parties define the disputes to be resolved
○ Demand/notice to arbitrate - Invoking collective agreement arbitration clause
● RELIEFS AND REMEDIES may be GRANTED by VA
○ in Illegal dismissal cases
■ Actual reinstatement
■ Separation pay in lieu of reinstatement, if impossible, non-feasible or
impractical
■ Full backwages
Page 166 of 9
 ■ Moral and exemplary damages
■ Atty Fees
○ Monetary awards in monetary claims
○ Decisions are final and executory after 10 calendar days
■ Appealable on the basis of a certiorari to CA
■ Motion for reconsideration must first be filed.

J. Prescription of Actions
1. Money Claims - Including incremental proceeds arising from tuition fees
● 3 years from time of cause of action accrued
● XPN: Promissory Estoppel
○ A promise was reasonably expected to induce action or forbearance
○ Such promise induce action or forbearance
○ The party suffered detriment as a result
● Prior to LC
○ Within 1 year from the date of effectivity, in accordance with IRR
● Claim for back wages
○ 4 years. It commences to run from the date of formal dismissal.
2. Illegal Dismissal - 4 years
3. Unfair Labor Practices - 1 year from accrual
4. Offenses Under the Labor Code - 3 years
5. Illegal Recruitment
● Simple illegal recruitment - 5 years
● Economic Sabotage - 20 years

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