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Labor Standards Reviewer 1 De Leon, Alessandra 1AA Labor Legislation consists of statutes, reglations and jurisprudence governing the

e relations between capital and labor, by providing for certain employment standards and a legal framework by negotiating, adjusting, and administering those standards and other incidents of employment. 2 DIVISIONS OF LABOR LEGISLATION: 1. Labor standards law ast hat which that sets out the least or basic terms, conditions, benefits of employment that employers must provide or comply with and to which employees are entitled to as matter of legal right. - Minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost-of-living allowances, and other monetary and welfare benefits, including occupational, safety, and health standards. 2. Labor relations law defines the status, rights and duties, and the institutional mechanisms that govern the individual and collective interactions of employees, employers and their representatives Labor - is understood as physical toil although it does not necessarily exclude the application of skill, thus there is skilled and unskilled labor. Skill is the familiar knowledge of any art or science, united with readiness and dexterity in execution or performance or in the application of art or science to practical purposes Work is broader than labor, as it covers all forms of physical or mental exertion, or both combined, for the attainment of some object other than recreation or amusement per se. LABOR LAW AND SOCIAL LEGISLATION Social legislation those laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. LABOR LAWS ARE SOCIAL LEGISLATION. BUT NOT ALL SOCIAL LEGISLATIONS ARE LABOR LAWS. Labor laws directly affect employment while social legislations governs the effect of employment. 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. The Supreme Court adopts the liberal approach which favors the exercise of labor rights. The labor law is liberally construed in favor of the workers and strictly construed against the employers.

Social Justice as defined by Dr. Jose P. Laurel in Calalang v. Williams, is neither communism, nor despotism, nor atomism, nor anarchy, but the equalization of social and economic forces by the State so justice in its rational and objectively secular conception may be approximated. While social justice is the raison d'etre of labor laws, their basis or foundation is the police power of the State. Police Power is the power of the government to enact laws, within constitutional limits, to promote the order, safety, health, morals and general welfare of society. It is settled that state legislatures may enact laws for the protection of the safety and health of employees as an exercise of police power. CONSTITUTIONAL RIGHTS AND MANDATES If there should be conflict between constitutional provisions and those of the Labor Code, the Constitution shall prevail as it is the highest law of the land. Basic Rights of Workers guaranteed by the Constitution: 1. Right to organize themselves 2. To conduct collective bargaining agreement or negotiation with the management 3. To engage in peaceful and concerted activities. 4. To enjoy security of tenure 5. To work under humane conditions 6. To receive a living wage 7. To participate in policy and decision-making processes affecting their rights and benefits Note: RIGHTS ARE BASED ON THE BASIC RIGHT TO PROPERTY.

Labor Standards Reviewer 2 De Leon, Alessandra 1AA CAN LABOR ORGANIZATIONS BE EMPLOYERS? ** YES. Even if its a conglomeration of unions. ART. 6 APPLICABILITY Labor Code applies to government corporations incorporated under the Corporation Code. The government-owned and controlled corporations with ORIGINAL CHARTER refer to corporations chartered by special law, as distinguished from corporations organized under our general incorporation statute, the Corporation Code. The test now is the MANNER OF CREATION. Government Corporations created by original (special) charter are subject to CIVIL SERVICE LAW, while those under the general Corporation Law are covered by the Labor Code. WITH ORIGINAL CHARTER = CIVIL SERVICE LAW FOUR-FOLD TEST AND TWO-TIERED APPROACH in determining employee-employer relationship. Four Fold Test: 1. The selection and engagement of the employee 2. The payment of wages 3. The power of dismissal 4. Employers power to control the employee with respect to the means and methods by which the work is to be accomplished. Note: The so-called control test is the most important element. Two-tiered Approach: 1. The putative employers power to control the employee with respect to the means and methods to which the work is to be accomplished 2. The underlying economic realities of the activity or relationship Two-tiered approach provides us with a framework of analysis, which would take into consideration the totality of circumstances surrounding the true nature of the relationship between the parties. Such as: a. The extent to which the services performed are an integral part of the employers business b. The extent of workers investment in equipment and facilities c. The degree of control exercised by the employer

Reason for according greater protection to employees In the matter of employment bargaining, there is no doubt that the employer stands on higher footing than the employee. Those who have less in life should have more in law. MANAGEMENT RIGHTS It should not be supposed that every labor dispute will be automatically decided in favor of labor. Management has also its own rights which are entitled to respect and enforcement in the interest of simple fair play. The law, in protecting the rights of the laborer, authorizes neither oppression nor self-destruction of the employer. Right to Return of Investments (ROI) the employer has the right to recover his investments and to make profit. The Constitution provides that the State shall regulate the relations between workers and employers, recognizing the right of labor to its just share... and the right of enterprises to reasonable returns on investments, and to expansion and growth. The Right to Prescribe Rules employers have the right to make reasonable rules and regulations for the government of their employees, and when employees, with knowledge of an established rule, enter the service, the rule becomes part of the contract of employment. The Right to Select Employees an employer has a right to select his employees and to decide when to engage them. The State has no right to interfere in a private employment; it cannot interfere with the liberty of contract with respect to labor except in the exercise of the police power. If the employer can compel the employee to work against the latter's will, this is servitude. If the employee can compel the employer to give him work against the employer's will, this is oppression. Right to Transfer or Discharge Employees the employer has the perfect right to transfer, reduce or lay off personnel in order to minimize expenses and to insure the stability of the business, and even to close the business, provided the transfer or dismissal is not abused but is done in good faith and is due to causes beyond control. To hold otherwise would be oppressive and inhuman.

Labor Standards Reviewer 3 De Leon, Alessandra 1AA d. The workers opportunity for profit and loss e. The amount of initiative, skill, judgment, or foresight required for the success of the claimed interdependent enterprise f. The permanency and duration of the relationship between the employer and the employee g. The degree of dependency of the worker upon the employer for the continued employment in the line of business The proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment for that line of business (Angelina Francisco v. NLRC GR No. 170087) EMPLOYEE any person who performs services for an employer, either or both physical and mental efforts are used and who receives compensation for such services, where there is an employer-employee relationship. 236 ULP (b) to require as a condition of employment that a person or an employee shall not join a labor organization or shall withdraw from one to which he belongs.

2. Special Laws RA 7160 Sec. 12: No children below fifteen years of age shall be employed except: - when under the sole responsibility of his parents or guardians, provided that his employment neither endangers his life, safety, etc: Provided further, that the parent shall provide the child with the prescribed primary and secondary education. Public Entertainment: Essential. The contract is with the express agreement of the child concerned.

RIGHT TO HIRE: Right or Prerogative?

It is both a privilege and a right but its not absolute. It is subject to limitations couched in certain laws. LIMITATIONS: 1. Labor Code Articles 136, 139 and 236 136 It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married xxx 139 Minimum Age Requirements: a. No child below fifteen years of age except when he works directly under the sole responsibility of his parents or guardians, and his employment does not interfere in his schooling b. Any person between 15 and 18 years of age may be employed for such numbers or hours determined by Sec. Of Labor c. Non-employment of a person below 18 years of age in an undertaking which is hazardous or deleterious in nature as determined by the Sec of Labor

RA 9231 Child labor. RA 7877 Anti-Sexual Harassment Act RA 8504 Phil. Aids Prevention and Control Act of 1998 RA 9208 Anti-Trafficking in Persons Act of 2003 RA 7277 Magna Carta for Disabled Person Sec. 32, Title 3, Chapter 1 RA 8971 Gen. Banking Laws of 2000 DOLE DO No. 4 Series of 1999

Labor Standards Reviewer 4 De Leon, Alessandra 1AA WAGES AND WAGE FIXING WAGE AND SALARY: Distinctions Wage applies to manual labor, skilled or unskilled, paid at stated times, and measured by the day, week, month or season. - Pay for a lower and less responsible character of employment. Salary denotes a higher degree of employment, or a superior grade of services, and implies a position or office - Suggestive of a larger and more permanent or fixed compensation for more important services Note: Both words generally refer to one and same meaning which is a reward or recompense for services performed. FACILITIES AND SUPPLEMENTS: Distinguished Facilities shall include articles or services for the benefit of the employee and his family, but shall not include tools of the trade and articles. It is wagedeductible. Supplements - when the benefit or privilege given to the employee constitute an extra remuneration over and above his basic or ordinary earning or wage. It is not wage deductible. Note: The criterion is not so much with the kind of the benefit or item, but he purpose. Requirements for Deducting Value of Facilities: a. Proof must be shown that such facilities are customarily furnished by the trade b. The provision of the deductible facilities must be voluntarily accepted in writing by the employee c. Facilities must be charged at a fair and reasonable value **SALARY EXCLUDES ALLOWANCES FAIR DAYS WORK FOR FAIR DAYS LABOR If there is no work performed by the employee, there can be no wage or pay unless the laborer was able, willing, and ready to work but was prevented by the management or was illegally locked-out suspended or dismissed. Thus it has been held that where the failure of workers to work was not due to the employers fault, the burden of economic loss suffered by the employees should not be shifted to the employer. Each must bear his own loss. EQUAL PAY FOR EQUAL WORK Employees working in the Philippines, if they are performing similar functions and responsibilities under similar working conditions, should be paid under the principle of equal pay for equal work WORKERS LIEN Art. 1707, 1708 and 1709 of CIVIL CODE

MINIMUM WAGE RATES Statutory Minimum Wage is the lowest wage rate fixed by law that an employer can pay his employees. Compensation which is less than such minimum rate is considered an underpayment that violates the law ** The establishment of the minimum wage benefits directly the low-paid employees, who now receive inadequate wages on which to support themselves and their families. It benefits all wage earners indirectly be setting a floor below which their remuneration cannot fall. It raises the standard of competition among employers, since it would protect the fair-minded employer...from the competition of the employer who... [pays] his workers a wage below subsistence. ** The employer cannot exempt himself from the liability to pay the minimum wage because of the poor financial condition of the company, the payment of minimum wages not being dependent on the employers ability to pay. ** To promote productivity-improvement and gainsharing measures to ensure a decent standard of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employee generation in the country-side from industry dispersal and to allow business and industry reasonable returns on investment, expansion and social economic force **BENEFITS BOTH EMPLOYERS AND EMPLOYEES

Labor Standards Reviewer 5 De Leon, Alessandra 1AA EXEMPTIONS: a. Household or domestic helpers. Including family drivers and persons in the personal service of another b. Homeworkers engaged in needle work c. Workers employed in any establishment duly registered with the National Cottage Industries and Devt Authority d. Workers in any duly registered cooperatives e. BMBEs (BMBE Act of 2002) Barangay Micro-Business Enterprises ** BMBE is defined as any business enterprise engaged in the production, processing, or manufacturing of products whose total assets including those arising from loans but exclusive of the land, on which the office, plant and equipment are situated, shall not be more than 3 MILLION PESOS. f. Establishments employing not more than 10 persons. CREATION OF NATIONAL WAGES AND PRODUCTIVITY BOARD (ARTICLE 120) ARTICLE 121 POWERS and FUNCTIONS OF NWPC (a) To act as the national consultative and advisory body to the President of the Philippines and Congress on matters relating to wages, incomes and productivity; (b) To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry and national levels; (c) To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measures at the regional, provincial, or industry levels; (d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if these are in accordance with prescribed guidelines and national development plans; (e) To undertake studies, researches and surveys necessary for the attainment of its functions and objectives, and to collect and compile data and periodically disseminate information on wages and productivity and other related information, including, but not limited to, employment, cost-of-living, labor costs, investments and returns; (f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine whether these are consistent with national development plans; (g) To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity Boards; (h) To call, from time to time, a national tripartite conference of representatives of government, workers and employers for the consideration of measures to promote wage rationalization and productivity; and (i) To exercise such powers and functions as may be necessary to implement this Act. The Commission shall be composed of a. the Secretary of Labor and Employment as exofficio chairman, b. the Director-General of the National Economic and Development Authority (NEDA) as ex-officio vicechairman, c. and two (2) members each from workers and employers sectors who shall be appointed by the President of the Philippines upon recommendation of the Secretary of Labor and Employment to be made on the basis of the list of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a term of five (5) years. The Executive Director of the Commission shall also be a member of the Commission. The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two (2) Deputy Directors, who shall be appointed by the President of the Philippines, upon the recommendation of the Secretary of Labor and Employment. ARTICLE 122 Powers and functions of the Regional Boards in their respective territorial jurisdictions a. To develop plans, programs and projects relative to wages, incomes and productivity improvement for their respective regions; b. To determine and fix minimum wage rates applicable in their regions, provinces or

Labor Standards Reviewer 6 De Leon, Alessandra 1AA industries therein and to issue the corresponding wage orders, subject to guidelines issued by the Commission; c. To undertake studies, researches, and surveys necessary for the attainment of their functions, objectives and programs, and to collect and compile data on wages, incomes, productivity and other related information and periodically disseminate the same; d. To coordinate with the other Regional Boards as may be necessary to attain the policy and intention of this Code; e. To receive, process and act on applications for exemption from prescribed wage rates as may be provided by law or any Wage Order; and f. To exercise such other powers and functions as may be necessary to carry out their mandate under this Code. Each Regional Board shall be composed of a. the Regional Director of the Department of Labor and Employment as chairman, b. the Regional Directors of the National Economic and Development Authority and the Department of Trade and Industry as vicechairmen and c. two (2) members each from workers and employers sectors who shall be appointed by the President of the Philippines, upon the recommendation of the Secretary of Labor and Employment, to be made on the basis of the list of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a term of five (5) years. Each Regional Board to be headed by its chairman shall be assisted by a Secretariat. WAGE FIXING PROCEDURE Issuance of Wage Order Within 30 days after the conclusion of the last hearing, the Board shall decide based on the merits of the petition, and where appropriate, issue a wage order establishing the regional minimum wage rates. PROVIDED: that such wage rates shall not be lower than the regional minimum wage rate. Contents: shall specify region, province or industry and provide exceptions, if any, subject to the guidelines issued by the Commission Frequency: not be disturbed for a period of 12 months from its effectivity. In the event that supervening conditions demand a review of the minimum wage rates, the Board can exercise its wage fixing function even before the expiration of the said period. Effectivity 15 days after its publication in at least one (1) newspaper of general circulation IRR The board shall prepare, with the approval of the Sec. Of Labor, the implementing rules and regulations upon recommendation of the Commission, not later than 10 days from the issuance of the Wage Order. ** Sec of Labor shall act within 20days upon receipt NOTE: The RTWPB can issue wage orders without the approval of NWPC. But the IRR needs approval. ART. 124 STANDARDS AND CRITERIA FOR MINIMUM WAGE FIXING a. the demand for living wages b. wage adjustment vis a vis the consumer price index c. cost of living and changes or increases therein d. needs of workers and their families e. need to induce industries to invest in the countryside f. improvements in standards of living g. the prevailing wage levels h. fair return of capital i. effects on employment generation and family income j. the equitable distribution of income and wealth along the imperatives of economic and social development

Purpose of RTWPB: The intention was to rationalize the wages, first, by providing full time boards to police wages round-theclock, and second, by giving boards enough powers to achieve this objective.

Labor Standards Reviewer 7 De Leon, Alessandra 1AA TWO METHODS OF MINIMUM WAGE ADJUSTMENT 1. Fixing of determinate amount that would be added to the prevailing statutory minimum wage 2. Salary-Ceiling method the wage adjustment is applied to employees receiving a certain denominated salary ceiling. WAGE DISTORTION - 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 distinction embodied in such wage structure based on skills, length of service or other logical bases of differentiation. ** No salary distortion if the employees are located in different regions. Correcting Distortion: The legislative intent is to encourage the parties to seek solution to their problem of wage distortions through voluntary negotiation or arbitration, rather than strikes, lock-outs or other concerted activities. Unorganized establishments shall be settled through the NCMB and if remains unsolved after 10 days of conciliation, shall be referred to any branch of of the NLRC. Organized CBA negotiations or grievance machinery, if remains unsolved, voluntary arbitration. Double Indemnity and Imprisonment: Sec 12 of RA 6727 as amended by RA 8188 Paragraph 3 The employer shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees, provided, that payment of indemnity shall not absolve the employer of his criminal liability. 1. Access to employers records and premises at any time of the day or night whenever work is being undertaken therein; 2. To copy from employer's records; 3. To question any employee 4. To investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of this Code and of any labor law, wage order, rules and regulations pursuant thereto Enforcement Power of the Secretary of Labor and Employment or his duly authorized representatives, in cases where employer-employee relationship still exists, shall have the power to: 1. To issue compliance orders to give effect to the labor standards provisions of this Code and other labor legislation based on the findings of labor employment and enforcement officers or industrial safety engineers made in the course of inspection; 2. To issue writs of execution to the appropriate authority for the enforcement of their orders; EXCEPT when the employers contest the finding of the labor employment and enforcement officers and raises issues with documentary proof. 3. to order stoppage of work or suspension of operations of any unit or department of an establishment when noncompliance with the law or implementing rules and regulations poses grave and imminent danger to the health and safety of workers in the workplace. Within 24 hours, a hearing shall be conducted to determine whether the stoppage or suspension shall be lifted or not ** It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of the Secretary of Labor and no inferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over any case involving the enforcement orders issued in accordance with this Article. Any government employee found guilty of violation of, or abuse of authority, under this Article shall, after appropriate administrative investigation, be subject to summary dismissal from the service.


Art. 128. Visitorial and enforcement power. Visitorial Power of the Secretary of Labor and Employment or his duly authorized representatives, including labor regulation officers:

Labor Standards Reviewer 8 De Leon, Alessandra 1AA THE ENFORCEMENT FRAMEWORK: 1. Self assessment - voluntary compliance mode applicable to and encouraged in establishments with: a. at least 200 workers and; b. regardless of number or workers, to unionized firms with CBAs 2. Inspection 10 to 199 workers 3. Advisory Service less than 10 workers and BMBEs SCOPE OF VISITORIAL AND ENFORCEMENT POWER The visitorial and investigatory power under Art 128 is likewise unlimited by the amount of monetary liability involved. AMENDED BY RA 7730. (3) years, shall be held as a special fund of the Department of Labor and Employment to be used exclusively for the amelioration and benefit of workers. Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on the same grounds provided in Article 223 of this Code, within five (5) calendar days from receipt of a copy of said decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10) calendar days from the submission of the last pleading required or allowed under its rules. The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid wages and other monetary claims and benefits, including legal interest, found owing to any employee or househelper under this Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989) ** REQUISITES: a. the claim is presented by an employee, or a person employed in household or domestic service, or househelper b. arises from employer-employee relationship c. the claimant does not seek reinstatement d. money claim does not exceed 5000 Art. 217. Jurisdiction of the Labor Arbiters and the Commission. The Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for decision without extension the following cases involving all workers, whether agricultural or nonagricultural: Unfair labor practice cases; Termination disputes; If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment; Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations; Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts; and Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims arising from employeremployee relations, including those of persons in domestic or household service, involving an amount

Art. 129. Recovery of wages, simple money claims and other benefits. The Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the Department is empowered, through summary proceeding and after due notice, to hear and decide: 1. any matter involving the recovery of wages and other monetary claims and benefits, including legal interest, provided that the aggregate money claims of each employee or househelper does not exceed Five thousand pesos (P5,000.00). 2. owing to an employee or person employed in domestic or household service or househelper under this Code 3. arising from employer-employee relations 4. complaint does not include a claim for reinstatement; and The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30) calendar days from the date of the filing of the same.

Any sum thus recovered on behalf of any employee or househelper pursuant to this Article shall be held in a special deposit account by, and shall be paid on order of, the (1) Secretary of Labor and Employment or (2) the Regional Director or (3) directly to the employee or househelper concerned. Any such sum not paid to the employee or househelper because he cannot be located after diligent and reasonable effort to locate him within a period of three

Labor Standards Reviewer 9 De Leon, Alessandra 1AA exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement. The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters. Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be provided in said agreements. Stages in the hearing of cases 1. Labor arbiter; and may be appealed to 2. The National Labor Relations Commission (NLRC); and may be appealed to 3. The Court of Appeals (CA); and may be appealed to 4. The Supreme Court (SC) ARTICLES 128 and 129 COMPARED 128 *speaks of inspection and issuance of orders to compel compliance with labor standards *enforcement of labor legislation in general *proceedings are offshoot of inspections done 129 *adjudication of employees claims for wages and benefits *limits the proceedings to monetary claims *proceedings are initiated by sworn complaints filed by interested parties. *present or past employees but there is no demand for reinstatement *see the four requisites WAGE PROTECTION PROVISIONS AND PROHIBITIONS REGARDING WAGES Art. 112. Non-interference in disposal of wages. No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities or other property from any other person, or otherwise make use of any store or services of such employer or any other person. Violation: Labor Code fine not less than one thousand pesos nor more than ten thousand pesos or imprisonment for not less than 3 months nor more than 3 years RPC - penalty of arresto mayor or a fine ranging from 200-500 pesos. Art. 113. Wage deduction. General Rule: No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees. Exceptions: a. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance; b. For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned; and c. In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. Additional to the Authorized Deductions a. In cases where the employee is indebted to the employer, where such indebtedness has become due and demandable; b. In court awards, wages may be subject of execution or attachment, but only for debts incurred for food, shelter, clothing, and medical attendance; c. Withholding tax; d. Salary deductions of a member of a legally established cooperative; e. Deductions for payment to third persons, upon written authorization of the employee;

Nature and Subject of the Proceedings

Workers Involved

*employees still in the service

Jurisdictional *its visitorial and limits enforcement powers were purposely strengthened by RA 7730 to free it from the limitations imposed by Art 129.

Labor Standards Reviewer 10 De Leon, Alessandra 1AA f. Union dues; g. Agency fee; h. Deductions for value of meal and other facilities; i. Deductions for loss or damage; j. SSS, Medicare, Pag-IBIG premiums. **WITHHOLDING Debts due and demandable **DEDUCTIONS authorized by the employee in writing CIVIL CODE PROVISIONS: 1705. The laborers wage shall be paid in legal currency 1706. Withholding of the wage due, except for a debt due, shall not be made by the employer 1707. The laborers wage shall be a lien in the goods manufactured or the work done 1708. The laborers wages shall not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance. 1709. The employer shall neither seize nor retain any tool or other articles belonging to the laborer Reduced Pay because of Reduced Work Days In situations where the reduction in the number of regular working days is resorted to by the employer to prevent serious losses due to causes beyond his control, such as when there is a substantial slump in the demand for his goods or services or when there is lack or raw materials, such reduction is VALID. It is in this view that the employer may deduct the wages and allowances corresponding to the days taken off from the workweek. This view is consistent with the principle of no-work-no-pay. Art. 114. Deposits for loss or damage. General Rule: No employer shall require his worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer. **Exceptions: When the employer is engaged in such trades, occupations or business where the practice of making deductions or requiring deposits is a recognized one, or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and regulations. Art. 115. Limitations. No deduction from the deposits of an employee for the actual amount of the loss or damage shall be made unless the employee has been heard thereon, and his responsibility has been clearly shown. Four Conditions to Met Before Payments for Lost or Damaged Equipment May Be Deducted a. the employee is shown to be responsible for the loss or damage; b. the employee is given ample opportunity to show cause why deduction should not be made; c. the amount of the deduction is fair and reasonable and shall not exceed the actual loss or damage; and d. the deduction from the employee's wage does not exceed 20% of the employee's wages in a week. Art. 116. Withholding of wages and kickbacks prohibited. It shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the workers consent. Art. 117. Deduction to ensure employment. It shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in employment. Art. 118. Retaliatory measures. It shall be unlawful for an employer: to refuse to pay or reduce the wages and benefits, discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings. Art. 119. False reporting. It shall be unlawful for any person to make any statement, report, or record filed or kept pursuant to the provisions of this Code knowing such statement, report or record to be false in any material respect.

Labor Standards Reviewer 11 De Leon, Alessandra 1AA Art. 100. Prohibition against elimination or diminution of benefits. 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. Non-diminution rule it essentially means that benefits being given to employees cannot be taken back or reduced unilaterally by the employer because the benefit has become part of the employment contract, written or unwritten. The rule against diminution of benefits may apply, if it is shown that: a. The grant of the benefit id founde don a policy or has ripened into a practice over a long period b. Practice is consistent and deliberate c. Practice is not due to error in the construction or application of a doubtful or difficult question of law d. Done unilaterally by the employer. ** IT IS VALID, HOWEVER, ON THE PRINCIPLE OF EQUIVALENCE. If the removed benefit has been replaced by another, which is equal to or greater than the benefit previously received, then such diminution is valid.

Art. 102. No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee. Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity of this Code, or is necessary because of special circumstances as specified in appropriate regulations to be issued by the Secretary of Labor and Employment or as stipulated in a collective bargaining agreement. ** Where the employee alleges non-payment of wages, the employer has the burden to prove such payment. Art. 103. Time of payment. General Rule: Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. Exception: If on account of force majeure or circumstances beyond the employers control payment of wages on or within the time herein provided cannot be made. The employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month. The payment of wages of employees engaged to perform a task which cannot be completed in two (2) weeks shall be subject to the following conditions, in the absence of a collective bargaining agreement or arbitration award: 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. Art. 104. Place of payment. General Rule: Payment of wages shall be made at or near the place of undertaking Exception: As otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages.

Labor Standards Reviewer 12 De Leon, Alessandra 1AA **Payment in place other than the workplace shall be permissible under the following circumstances: 1. By reason of deterioration of peace and other conditions, or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity 2. Employer provides free transportation back and forth 3. Under any analogous circumstances; provided that the time spent by the employees in collecting their wages shall be considered compensable hours worked. 4. No employer shall pay his employees in any bar, night or day club, drinking establishments, massage clinics, dance hall, or other similar places or in places where games are played with stakes of money or things representing money except when employees are employed in such places PAYMENT THROUGH BANKS **Upon written permission of the ajority of the employees or workers concerned, all private establishments, companies, businesses, and other entities with 25 or more employees and located within 1 kilometer radius to a commercial, savings or rural bank shall pay that wages through any of the said banks. **The bank shall issue a certification of the record of payment of wages whenever applicable and upon request of a concerned worker or union DOLE Labor Advisory S. 1996 ** Payment thru ATMs is allowed. Art. 105. Direct payment of wages. General Rule: Wages shall be paid directly to the workers to whom they are due. Exceptions: a. In cases of force majeure rendering such payment impossible or under other special circumstances to be determined by the Secretary of Labor and Employment in appropriate regulations, in which case, the worker may be paid through another person under written authority given by the worker for the purpose; or b. Where the worker has died, in which case, the employer may pay the wages of the deceased worker to the heirs of the latter without the necessity of intestate proceedings. The claimants, if they are all of age, shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is a minor, the affidavit shall be executed on his behalf by his natural guardian or next-ofkin. The affidavit shall be presented to the employer who shall make payment through the Secretary of Labor and Employment or his representative. The representative of the Secretary of Labor and Employment shall act as referee in dividing the amount paid among the heirs. The payment of wages under this Article shall absolve the employer of any further liability with respect to the amount paid.