Labor Code 97 - 112

PRELIMINARY MATTERS

Article 97 “Definitions”
This article provides definitions for several key terms used throughout the Philippine
Labor Code to ensure clarity and consistency in interpreting and applying the labor
laws in the Philippines.

(a) Person - means an individual, partnership, association, corporation,

business trust, legal representatives, or any organized group of persons.
(b) Employer - any person acting in the interest of an employer, including the
government, its branches, and corporations, as well as non-profit
organizations.
(c) Employee - any person employed by an employer.
(d) Agriculture - Includes various farming activities but not the manufacturing
or processing of farm products.
(e) Employ - includes to suffer or permit to work.
(f) Wage - is the money an employee earns, including the fair value of
non-monetary benefits provided by the employer, as determined by the
Secretary of Labor and Employment. This value shouldn't include employer
profit or benefits to related parties.

Article 98 “Application of Title”

This article provides guidelines on how certain provisions of the labor code
apply, specifically in cases involving public officials or employees. It states that
the provisions in Title II do not apply to certain types of work, such as farm
tenancy, domestic service, and registered cottage industries. Public officials and
employees are governed by the Civil Service Law and Rules instead.

This Title 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 in accordance with law.
MINIMUM WAGE RATES

Article 99 “Regional Minimum Wages”

This article provides and empowers the Regional Board to determine and set
minimum wage rates specific to different regions, provinces, or industries,
considering local economic conditions and the cost of living here in the
Philippines.

The minimum wage rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).

Article 100 “Prohibition Against Elimination or Diminution of Benefits”

This article straightforwardly prohibits employers from reducing or removing any
benefits, supplements, or payments mandated by current labor laws. It
safeguards the rights of employees to the benefits they are entitled to under the
law.

Nothing in this Book shall be construed to eliminate or in any way diminish

supplements, or other employee benefits being enjoyed at the time of
promulgation of this Code.

Article 101 “Payment by Results”

This article authorizes the Secretary of Labor and Employment to establish
regulations regarding the payment of wages based on results, such as piecework
or other non-time-based work. The goal is to ensure that workers receive fair and
reasonable wage rates for such work, potentially involving time and motion
studies or discussions with worker and employer representatives to determine
appropriate compensation.

The Secretary of Labor and Employment shall regulate the payment of wages by
results, including pakyao, piecework, and other non-time work, in order to ensure
the payment of fair and reasonable wage rates, preferably through time and
motion studies or in consultation with representatives of workers’ and employers’
organizations.
PAYMENT OF WAGES

Article 102 “Forms of Payment”

This article specifies that employers are not allowed to pay their employees'
wages using methods other than legal tender (i.e., cash or bank deposit). It
prohibits the use of promissory notes, vouchers, coupons, tokens, tickets, chits,
or any other objects as forms of wage payment, even if the employee requests
such payment methods. The use of legal tender is mandatory for wage payments.

No employer shall pay the wages of an employee by means of promissory notes,

vouchers, coupons, tokens, tickets, chits, or any object other than legal tender,
even when expressly requested by the employee.

Article 103 “Time of Payment”

This article specifies that wages must be paid to employees at least once every
two weeks or twice a month with intervals not exceeding sixteen days. In cases
where force majeure or circumstances beyond the employer's control prevent
timely payment, the employer should pay the wages immediately after these
issues are resolved. Employers are not allowed to make wage payments with less
frequency than once a month.

Wages shall be paid at least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on account of force majeure or
circumstances beyond the employer’s control, payment of wages on or within the
time herein provided cannot be made, the employer shall pay the wages
immediately after such force majeure or circumstances have ceased. No
employer shall make payment with less frequency than once a month.

Article 104 “Place of Payment”

This article states that wage payments should be made at or near the place of
employment, where the work is being performed. However, the Secretary of Labor
and Employment has the authority to establish regulations that specify different
payment arrangements when necessary to ensure greater protection of
employees' wages.

Payment of wages shall be made at or near the place of undertaking, except as

otherwise provided by such regulations as the Secretary of Labor and
Employment may prescribe under conditions to ensure greater protection of
wages.
Article 105 “Direct Payment of Wages”
This article stipulates that wages should be paid directly to the workers entitled
to them, with certain exceptions:

(a) Exceptions can be made under special circumstances, such as force majeure,
where direct payment is not possible, subject to regulations set by the Secretary
of Labor and Employment.

(b) In the event of the worker's death, the employer can pay the wages due to the
deceased worker to their heirs without the need for formal intestate proceedings.

Wages shall be paid directly to the workers to whom they are due, except:

(a) In cases of force majeure rendering such payment impossible or under other
special circumstances to be determined by the Secretary of Labor and
Employment in appropriate regulations.

(b) Where the worker has died, in which case the employer may pay the wages of
the deceased worker to the heirs of the latter without the necessity of intestate
proceedings.

Article 106 “Contractor or Subcontractor”

This article states that when an employer hires another person or entity to
perform work on their behalf, the employees of both the contractor and any
subcontractor shall be entitled to the benefits and protections outlined in the
Philippine Labor Code. This ensures that workers involved in contracted work
receive the appropriate labor rights and benefits.

Whenever an employer enters into a contract with another person for the
performance of the former’s work, the employees of the contractor and of the
latter’s subcontractor, if any, shall be paid in accordance with the provisions of
this Code.

Article 107 “Indirect Employer”

This article extends the principles mentioned in the previous article (Article 106)
to individuals, partnerships, associations, or corporations that are not the direct
employer but engage an independent contractor to carry out work, tasks, jobs, or
projects. It ensures that labor laws and protections apply to such indirect
employers and the employees involved in the contracted work.
The provisions of the immediately preceding article shall likewise apply to any
person, partnership, association or corporation which, not being an employer,
contracts with an independent contractor for the performance of any work, task,
job or project.

Article 108 “Posting of Bond”

This article allows employers to request a bond from job applicants to ensure
their compliance with work-related responsibilities. The bond should not exceed
one hundred pesos or the equivalent of one month's salary and must be
submitted to the regional office of the Department of Labor. If the bond is
violated, the employer can file a complaint with the regional office, and the
Secretary of Labor and Employment or authorized representatives can issue a
writ of execution if requested by either party. This serves as a form of security in
the employment relationship.

An employer or indirect employer may require the contractor or subcontractor to

furnish a bond equal to the cost of labor under contract, on condition that the
bond will answer for the wages due the employees should the contractor or
subcontractor, as the case may be, fail to pay the same.

Article 109 “Solidary Liability”

This article stipulates that violators may face fines or imprisonment. The fine
ranges from ₱500 to ₱20,000, and the imprisonment term is one to two years. For
continuing violations, a daily fine of ₱100 to ₱2,000 may be imposed. Employers
are solidarily liable with their contractors or subcontractors if violations occur
due to the employer's fault, allowing workers to claim their full compensation.
This ensures worker protection, even when there's a contract between the
employer and the contractor.

The provisions of existing laws to the contrary notwithstanding, every employer

or indirect employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code. For purposes of
determining the extent of their civil liability under this Chapter, they shall be
considered as direct employers.
Article 110 “Worker preference in case of bankruptcy”
This article stipulates that in the event of an employer's bankruptcy or business
liquidation, workers have the highest priority in receiving their unpaid wages and
other monetary claims. Regardless of any conflicting legal provisions, unpaid
wages, monetary claims, social security and welfare contributions, other legally
provided benefits, and uncollected withholding tax are all considered claims of
the workers and are to be paid in order of preference. This prioritizes workers'
financial well-being in difficult circumstances, such as employer bankruptcy.

In the event of bankruptcy or liquidation of an employer’s business, his workers

shall enjoy first preference as regards their wages and other monetary claims,
any provisions of law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the government and other
creditors may be paid. (As amended by Section 1, Republic Act No. 6715, March
21, 1989)

Article 111 “Attorney’s fees”

This article establishes guidelines for attorney's fees in labor cases:

(a) If wages are unlawfully withheld, the party responsible may be required to pay
attorney's fees equal to ten percent of the recovered wages.

(b) It is unlawful for anyone to demand or accept attorney's fees in excess of ten
percent of the recovered wages in any legal or administrative action for wage
recovery.

(a) In cases of unlawful withholding of wages, the culpable party may be

assessed attorney’s fees equivalent to ten percent of the amount of wages
recovered.
(b) It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of wages, attorney’s fees
which exceed ten percent of the amount of wages recovered.
PROHIBITIONS REGARDING WAGES

Article 112 “Non-interference in disposal of wages”

This article prohibits employers from interfering with employees' freedom to use
their wages as they see fit. Employers cannot compel employees to buy products
or property, and if they do, employees have the right to challenge it in court or
with the labor department. The Secretary of Labor and Employment can also set
regulations to limit such wage payments in goods or property. This safeguards
employees from undue influence in their wage disposal.

No employer shall limit or otherwise interfere with the freedom of any employee
to dispose of his wages. He shall not in any manner force, compel, or oblige his
employees to purchase merchandise, commodities or other property from any
other person, or otherwise make use of any store or services of such employer or
any other person.
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Expanded Maternity Leave Law 2 - 16

Section 2 “Declaration of Policy”

This section highlights the policy declaration, emphasizing the importance of
protecting and promoting the well-being of the people, with a specific focus on
women's roles in nation-building and gender equality. It also underscores the
duty of the State to safeguard the right to health and promote health
consciousness among its citizens, particularly with respect to maternity and
maternity leave.

It is the declared policy of the State under Article XIII, Section 14 of the 1987
Constitution to protect and promote the rights and welfare of working women,
taking into account them maternal functions, and to provide an enabling
environment in which their full potential can be achieved.

Section 3 “Grant of Maternity Leave”

This section provides maternity leave entitlement for female workers, allowing
105 days of leave, extendable to 120 days for solo parents. To qualify, a pregnant
employee must notify her employer at least 45 days in advance and provide a
medical certificate with the expected childbirth date. During maternity leave, the
employer pays the full salary, including benefits, and is later reimbursed by the
Social Security System (SSS). The law allows flexible leave scheduling, either
before or after childbirth, and it can be divided into two periods within a year from
the child's birth to accommodate individual needs.
All covered female workers in government and the private sector, including those
in the informal economy, regardless of civil status or the legitimacy of her child,
shall be granted one hundred five (105) days maternity leave with full pay and an
option to extend for an additional thirty (30) days without pay: Provided, That in
case the worker qualifies as a solo parent under Republic Act No. 8972, or the
"Solo Parents’ Welfare Act", the worker shall be granted an additional fifteen (15)
days maternity leave with full pay.

Section 4 “Maternity Leave for Female Workers in the Public Sector”

This section would specify the rights and entitlements of female public sector
employees regarding maternity leave, including the duration of the leave,
conditions for eligibility, and any additional benefits or requirements that apply
specifically to public sector workers.

Female government workers, regardless of employment status, are entitled to 105

days of maternity leave with full pay, extendable to 120 days if they qualify as solo
parents. An additional 30-day unpaid leave is optional. Notice should be given to
the agency head, with exceptions for medical emergencies.

Section 5 “Maternity Leave for Female Workers in the Private Sector”

This section would specify the entitlement, duration, and conditions for maternity
leave, as well as the responsibilities of both employers and employees in the
private sector.

Private sector grants female workers 105 days of maternity leave with full pay,
plus an additional 15 days for solo parents. The law also allows an optional
30-day unpaid leave. Employers must ensure full pay during maternity leave, with
specific exemptions for certain types of employers. The law promotes maternity
support and benefits for female workers in the private sector.

Section 6 “Allocation of Maternity Leave Credits”

The section outlines the rules for dividing the maternity leave period, depending
on the employee's preference, and it sets guidelines for notice to the employer.
This provision ensures flexibility for female workers in managing their maternity
leave based on their unique circumstances and needs. It promotes a balance
between work and family life.

Female workers can allocate up to seven days of their maternity leave benefits to
the child's father or an alternate caregiver. This option is available regardless of
marital status and is in the best interests of the child. Written notice to the
employer and the alternate caregiver is required. This benefit is in addition to
what is provided under the Paternity Leave Act of 1996. In the event of the
mother's death or permanent incapacity, the remaining maternity leave benefits
go to the child's father or a qualified caregiver.

Section 7 “Maternity Leave for Women Regardless of Civil Status”

This section ensures that all women, regardless of their marital status, are
entitled to the same maternity leave benefits. This provision promotes gender
equality and equal support for female workers during their maternity period.

All female workers in the government and female members of the SSS, regardless
of their civil status, shall be granted maternity leave, with full pay, upon
compliance with the preceding section.

Section 8 “Maternity Leave With Pay in Case of Childbirth, Miscarriage, or

Emergency Termination of Pregnancy After the Termination of an Employee’s
Service”
This section covers maternity leave with pay for situations like childbirth,
miscarriage, or pregnancy termination after an employee's service has ended. It
ensures that female workers in these circumstances receive the maternity
benefits they're entitled to.

Section 9 “Maternity Leave Credits”

It discusses how maternity leave credits are earned and managed. It covers the
process of accruing these credits, their usage conditions, and any provisions for
unused credits. This section ensures female workers understand their maternity
leave entitlements.

The maternity leave can be credited as combinations of prenatal and postnatal

leave as long as it does not exceed one hundred five (105) days and provided that
compulsory postnatal leave shall not be less than sixty (60) days.
Section 10 “Maternity Leave Benefits for Women in the Informal Economy and
Voluntary Contributors to the SSS”
This section ensures that these women receive the maternity benefits provided
by the law, promoting fairness and support for women in various work
arrangements.

Maternity benefits shall cover all married and unmarried women, including female
workers in the informal economy.

Section 11 “Maternity Benefits for Female Workers Who are Non-Members of the
SSS”
This section ensures that even non-members can access and receive maternity
benefits as required by the law, outlining conditions, requirements, and
procedures for their eligibility. This provision promotes inclusivity and support
for all female workers.

Female workers who are neither voluntary nor regular members of the SSS shall
be governed by the Philippine Health Insurance Corporation (PhilHealth) Circular
No. 022-2014 or the "Social Health Insurance Coverage and Benefits for Women
About to Give Birth".

Section 12 “Maternity Leave of a Female Worker With Pending Administrative

Case”
This section covers the maternity leave rights of a female worker who has a
pending administrative case. It ensures that she can still access her maternity
leave benefits as mandated by the law, even when there's an ongoing
administrative case. The section likely outlines the conditions, processes, and
safeguards in such situations.

The maternity leave benefits granted under this Act shall be enjoyed by a female
worker in the government service and in the private sector even if she has a
pending administrative case.

Section 13 “Maternity Leave for Female National Athletes”

This section addresses maternity leave benefits for female national athletes. It
ensures that these athletes receive appropriate support during their maternity
period, considering their role as representatives of the country. The section may
outline eligibility criteria, benefits, and procedures for these athletes to access
maternity leave.
Pregnant national athletes undergo medical assessments for training suitability
and can continue unless advised otherwise. Maternity leave is taken as
recommended, with continued allowances and benefits. Early return is possible
with physician approval, maintaining pre-pregnancy benefits. Public sector
athletes do not receive double compensation or benefits.

Section 14 “Non-Diminution of Benefits”

This section ensures that maternity leave benefits do not lead to a reduction in
the other benefits and rights of female workers, safeguarding their existing
employment conditions and compensation.

Nothing in this Act shall be construed as to diminish existing maternity benefits

currently enjoyed whether or not these are granted under collective bargaining
agreements (CBA) or present laws, if the same are more beneficial to the female
worker.

Section 15 “Security of Tenure”

This section safeguards the job security of female workers during and after
maternity leave, preventing discrimination or job loss due to pregnancy or taking
maternity leave. It provides protections to ensure their employment security.

Those who avail of the benefits of this Act, whether in the government service or
private sector, shall be assured of security of tenure. As such, the exercise of this
option by them shall not be used as a basis for demotion in employment or
termination.

Section 16 “Non-Discrimination”
This section prevents discrimination against female workers due to pregnancy or
taking maternity leave. It promotes fair and equal treatment in the workplace.

No employer whether in the public or private sector shall discriminate against the
employment of women in order to avoid the benefits provided for in this Act.