SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW

Any form of reproduction of this copy is strictly prohibited!!!

PRELIMINARY TITLE
7.Right to Participate in Policy &
CHAPTER I Decision-Making Processes affecting
GENERAL PROVISIONS their rights and benefits as may be
provided by law

ART 1. NAME OF DECREE
LABOR LEGISLATION - Consists of
statutes, regulations and jurisprudence
governing the relations between capital and
labor, by providing for certain standards of terms
and conditions of employment or providing a
legal framework within which these terms and
conditions and the employment relationship may
be negotiated, adjusted and administered. It is
divided into labor standards and labor relations.
LABOR STANDARDS - Are the minimum
requirements prescribed by existing laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary and welfare benefits,
including occupational safety, and health
standards.
LABOR RELATIONS LAW - defines the
status, rights, and duties and the institutional
mechanisms that govern the individual and
collective interactions of employers, employees
or their representatives.
0 The law which
seeks to stabilize the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.
RELATED LAWS:
0 CIVIL CODE: see Arts. 1700, 1701and 1703
1 REVISED PENAL CODE: Art. 289
2 OTHERS: SSS Law, GSIS Law, Agrarian
Reform Law, the 13th month pay law, the
Magna Carta for Public Health Workers, etc.
RATIONALE :
23 The raison d etre of labor laws is the
POLICE POWER of the State
ART 3. DECLARATION OF BASIC
POLICY
The State shall afford protection to labor,
promote full employment, ensure equal work
opportunities regardless of sex, age or creed,
and regulate the relations between workers and
employers. The State shall assure the right of
workers to self -organization, collective
bargaining, security of tenure, and just and
humane conditions of work.
EMPLOYER - one who employs the
services of others; one for whom employees
work and who pays their wages or salaries.
EMPLOYEE - one who works for an
employer; a person working for salary or wages

ART. 2. DATE OF EFFECTIVITY ART 4. CONSTRUCTION IN FAVOR OF

LABOR
The Labor Code took effect on November 1,
1974 (six months after its promulgation on May CONSTRUCTION IN FAVOR OF
1,1974) LABOR CLAUSE -this is with a view to apply
the Code to the greater number of employees to
SEVEN (7) BASIC RIGHTS OF enable them to avail of the benefits under the
WORKERS AS GUARANTEED BY law (Abella vs. NLRC). The working mans
THE CONSTITUTION (OCESHLP): welfare should be the primordial consideration.

5888 Right to Organize 23 This rule is applicable if there is a doubt as

5889 Right to Conduct Collective to the meaning of the legal or contractual
Bargaining or Negotiation with provision. If the provision is clear and
Management unambiguous, it must be applied in
5890 Right to Engage in Peaceful accordance with its express terms.
Concerted Activities including strike in
accordance with law 24 These laws should be interpreted with a
5891 Right to Enjoy Security of Tenure view to the fact that they are remedial in
5.Right to Work Under Humane Conditions nature, they are enacted to better the lot
6.Right to Receive a Living Wage
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
 SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!

and promote the welfare of the members of the

laboring class.
5888 Reservation of essential
attributes of sovereign power is read
into contracts as a postulate of the legal
order.
- Courts adopt a liberal approach that
favors the exercise of labor rights.
The mandate under Art. 4 is simply to
resolve doubt, if any, in favor of labor. If
there is no doubt in implementing and
interpreting the law, labor will enjoy no
built-in advantage and the law will have
to be applied as it is.
ART 6. APPLICABILITY
AGRICULTURAL OR FARM WORKER -
one employed in an agricultural or farm
enterprise and assigned to perform tasks which
are directly related to the agricultural activities of
the employer, such as cultivation and tillage of
the soil, dairying, growing and harvesting of any
agricultural and horticultural commodities, the
raising of livestock or poultry, and any activities
performed by a farmer as an incident to or in
conjunction with such farming operations.
23 There may be in one employer both
agricultural as well as industrial workers.

MANAGEMENT RIGHTS: (CPST) 24 PURPOSE of the provision: intended to

encourage workers to seek employment in
23 Right to conduct business agricultural enterprises instead of migrating
PRight to prescribe rules to already overcrowded urban areas to find
SRight to select employees work in industrial establishments
TRight to transfer or discharge employees
25 The LC applies to all workers, whether
MANAGEMENT PREROGATIVE agricultural or non-agricultural, including
employees in a government corporation
Except as limited by special laws, an incorporated under the Corporation Code.
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including: FARM
HIRING, WORK ASSIGNMENTS, EMPLOYER- TENANCY
WORKING METHODS, TIME PLACE AND FARM RELATIONSHIP
MANNER OF WORK, TOOLS TO BE USED, WORKER
PROCESSES TO BE FOLLOWED, RELATIONSHI
SUPERVISION OF WORKERS, WORKING P
REGULATIONS, TRANSFER OF EMPLOYEES,
- The lease is one - It is the landowner
WORK SUPERVISION, LAY-OFF OF
WORKERS, AND DISCIPLINE, DISMISSAL of labor with the who is the lessor
AND RECALL OF WORKERS. (HW5T2PLSD) agricultural laborer and the tenant the
as the lessor of his lessee of
Thus, so long as management prerogatives services and the agricultural land
are exercised in good faith for farm employer as
the advancement of the the lessee
employers interest and not for - The agricultural - The tenant derives
the purpose of defeating or
circumventing the rights of worker works for his income from the
the farm employer agricultural produce
employees under special law or
and for his labor he or harvest
under valid agreements, it shall receives a salary or
be upheld. wage, regardless of
whether the
ART 5. RULES AND REGULATIONS employer makes a
profit.
5888 The rules and regulations issued by the
DOLE shall become effective 15 days after
announcement of their adoption in
newspapers of general circulation.

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 2 of 70

CHAPTER II
EMANCIPATION OF TENANTS
(Note: not included as per SC Memo)
ART 7-11
5888 Share tenancy has been abolished
placing in its stead leasehold system.
5889 Under Art. 8, the land covered by
operation land transfer must be private
agricultural land, tenanted, primarily
devoted to rice and/or corn, and more
than seven hectares in are.
Present retention limits:
23 5 hectares per landowner and 3 hectares
per child provided the child is:
5888 Is at least 15 years of age; and
5889 Actually tilling the land or directly
managing the farm
EXCEPTIONS:
23 those covered by homestead patents
24 those covered by PD 27
EMANCIPATION PATENT - is the title issued
to the tenant upon compliance with all the
requirements of the government. It represents
the full emancipation pf the tenant from the
bondage of the soil.
PROHIBITION AGAINST ALIENATION
IS INTENDED TO:
23 Preserve the landholding in the hands of the
owner-tiller and his heirs;
24 minimize land speculation; and
25 prevent a return to the regime of land
ownership by a few.
BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
ART 13. DEFINITIONS
WORKER -any member of the labor force,
whether employed or unemployed
RECRUITMENT AND PLACEMENT - any act
of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for profit
or not; PROVIDED, that any person or entity
which, in any manner, offers or promises for a
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
(CEC-TUCP) (RCPA)
-The number of persons dealt with is not
an essential ingredient of the act of recruitment
and placement of workers. The proviso merely
creates the presumption.
ART 16. PRIVATE RECRUITMENT
ENTITIES AUTHORIZED TO RECRUIT
0 Public employment offices
1 Private recruitment entities; private
employment agencies
2 Shipping or manning agents or
representatives
3 The POEA
4 Construction contractors if authorized by the
DOLE and the Construction Industry
Authority
5 Members of the diplomatic corps (but hirings
must also go thru POEA)
6 Other persons or entities as may be
authorized by the DOLE secretary
DOCUMENTATION OF WORKERS:
5888 Contract Processing workers hired
thru the POEA shall be issued the individual
employment contract and such other
documents as may be necessary for travel
5889 Passport Documentation
5890 Visa Arrangement
ART 17. (POEA)
5888 POEA has taken over the functions of
the
OEDB
ADJUDICATORY FUNCTIONS OF THE
POEA :
a. All cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and
5888 Disciplinary action cases and other
special cases which are administrative in
character,
 involving employers, principals, contracting
partners and Filipino Migrant Workers
JURISDICTION TRANSFERRED TO
THE LABOR ARBITERS OF THE NLRC :
5888 claims arising out of an employer-
employee relationship or by virtue of any law
or contract involving Filipino workers for
overseas deployment including claims for
actual, moral, exemplary and other forms of
damages.
Venue Money claims or claims for damages
should be filed before the Regional Arbitration
branch of the NLRC where the complainant
resides or where the principal office of the
respondent/employer is situated, at the option of
the complainant.
Compromise Agreement - Consistent with
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows
resolution by compromise of cases filed with the
NLRC.
PREMATURE TERMINATION OF
CONTRACT - Where the workers employment
contract is terminated long before its agreed
termination date, and the termination is not
shown to be based on lawful or valid grounds,
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired
portion of their employment contract. (Tierra
Intl Construction Corp. vs. NLRC).
HOWEVER, under R.A. 8042, if the illegal
dismissal took place on or after July 15, 1995,
the illegally dismissed overseas worker shall be
entitled to the full reimbursement of his
placement fee with interest at the rate of 12%
per annum plus salary for the unexpired
portion of his employment contract or for 3
mos. for every year of the unexpired term
whichever is LESS.
5888 Claims for death and burial benefits
involving seamen OCWs which the POEA
has jurisdiction are not the same as the
claims against the State Insurance Fund
of the LC.
5889 The basis for the award of backwages is
the parties employment contract, stipulating the
wages and benefits.
5890 The fact that the employee has
signed a satisfaction receipt does not
result in waiver; the law does not
consider as
valid any agreement to receive less
compensation than what the worker is
entitled to recover.
(MR Yard Crew Union vs. PNR)
ART 18. BAN ON DIRECT-HIRING
Direct hiring of Filipino workers by a
foreign employer is not allowed.
EXCEPTIONS :
the members of the diplomatic
corps; international organizations;
such other employers as may be allowed by the
Department of Labor and employment
5888 name hirees individual workers who
are able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation or any agency
RATIONALE OF THE PROHIBITION
0 Filipino workers hired directly by a
foreign employer, without government
intervention may not be assured of the
best possible terms and conditions of
work. The foreign employer must also be
protected and may chance upon a Filipino
worker who do not possess sufficient
knowledge for which he is employed.
MINIMUM EMPLOYMENT
CONDITIONS OF OVERSEAS
EMPLOYMENT:
0.0 Guaranteed wages for regular
working hours and overtime pay for
services rendered beyond regular
working hours in accordance with
the standards established by the
Administration
0 Free Transportation from point of hire to site
of employment and return;
1 Free emergency medical and dental
treatment and facilities;
2 Just causes for termination of the contract or
of the services of the workers;
3 Workmens compensation benefits and war
hazard protection;
4 Repatriation of workers remains and
properties in case of death to the point of
hire, or if this is not possible the possible
disposition thereof
5 Assistance on remittance of workers
salaries, allowances or allotments to his
beneficiaries; and
6 Free and adequate board and lodging
facilities or compensatory food allowance at
prevailing cost of living standards at the
jobsite.

ART 22. MANDATORY REMITTANCE
OF FOREIGN EXCHANGE EARNINGS
MANDATORY REMITTANCE
REQUIREMENTS:
5888 Seamen or mariners: 80% of the basic
salary;
5889 Workers for Filipino Contractors and
Construction Companies: 70% of the basic
salary;
5890 Doctors, engineers, teachers, nurses,
and other professionals whose employment
contract provide for lodging facilities: same
as #2
5891 All other professionals without board
and lodging: 50% of the basic salary;
5892 Domestic and other service of workers;
50% of the basic salary.
ART 25. PRIVATE SECTOR
PARTICIPATION IN THE RECRUITMENT
AND PLACEMENT OF WORKERS
QUALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS
EMPLOYMENT PROGRAM:
5888 Filipino citizens, partnerships or
corporations at least 75% of the authorized
and voting capital stock of which is owned
and controlled by Filipino citizens;
5889 Minimum capitalization of 1M in case of
single proprietorship or partnership and a
minimum of 1M paid-up capital for
corporations;
5890 Those not otherwise disqualified by law
or these guidelines to engage in the
recruitment and placement of workers for
overseas employment
DISQUALIFICATIONS:
23 Travel agencies and sales agencies of
airline companies;
24 Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
25 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 engaged in
the business of a travel agency.
26 Persons, partnerships, or corporations which
have derogatory records;
27 Persons employed in the Department of
Labor or in other government agencies
directly involved in overseas employment
program and their relatives within the 4th
degree of consanguinity or affinity; or
5888 Those whose license has been
previously canceled or revoked.
CHAPTER II
REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES
ART 29. NON-TRANSFERABILITY OF
LICENSE OR AUTHORITY
0 No license or authority shall be used
directly or indirectly by any person other
than the one in whose favor it was issued
or at any place other than that stated in the
license or authority, nor may such license or
authority be transferred, conveyed or
assigned to any other person or entity.
1 Licensees or holders of authority or their
duly authorized representatives may as a
rule, undertake recruitment and placement
activities only at their authorized official
addresses.
2 Change of ownership or relationship of
single proprietorship licensed to engage
in overseas employment shall cause the
automatic revocation of the license.
3 All overseas landbased workers shall be
provided both life and personal accident
insurance.
GROUNDS FOR DISCIPLINARY
ACTION (Under the MWA of 1995) ;
0 Commission of a felony punishable by the
laws of the Philippines or by the host
country;
1 Drug addiction or possession or trafficking of
prohibited drugs;
2 Desertion or abandonment;
3 Drunkenness, especially where the laws of
the of the host country prohibit the same;
4 Gambling, especially where the laws of the
host country prohibit the same;
5 Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actions;
6 Creating trouble at the worksite or in the
vessel;
7 Embezzlement of company funds or of
money an properties of a fellow worker
entrusted for delivery to kins or relatives in
the Philippines;
8 Theft or robbery;
9 Prostitution;
10 Vandalism or destroying company property;
0 Gunrunning or possession of deadly
weapons;
1 Unjust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agency; and
2 Violation of the laws and sacred practices of
the host country and unjustified breach of
government approved employment contract
by a worker.
ART 31. BONDS
23 Cash bond filed by applicants for license
or authority is not subject to garnishment
by judgment creditor of agency
ART 32. FEES TO BE PAID BY
WORKERS
23 Suspension or cancellation of licenses may
include award of damages to repair the
injury caused to its victims.
ART 34. PROHIBITED PRACTICES
23 A supplementary contract beneficial to
worker not violative of protection
afforded by the State to workers.
ART 35. SUSPENSION AND/OR
CANCELLATION OF LICENSE OR
AUTHORITY
NON-LICENSEE OR NON-HOLDER OF
AUTHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and
placement by the Secretary of Labor, or whose
license or authority has been suspended,
revoked, or cancelled by the POEA and the
Secretary.
CHAPTER III
MISCELLANEOUS PROVISIONS
ART 38. ILLEGAL RECRUITMENT (as
per RA 8042 otherwise known as the
Migrant Workers Act of 1995)
ILLEGAL RECRUITMENT - Any act of
canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or
not when undertaken by a non-licensee
or non-holder of authority.
PROVIDED that any such non -licensee
or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
to two or more persons shall be deemed so
engaged. It shall likewise include the
commission of prohibited acts whether
committed by a non-licensee or non-holder of
authority or a licensee or holder of authority.
PROHIBITED PRACTICES:
(CFGIIEOFSBWF)
to charge or accept amount beyond amount
allowed by law
to furnish or publish false notice or information in
relation to Recruitment and Placement
to give any false notice and information or
commit any act of misrepresentation to
secure license or authority
Induce or attempt to induce workers to quit
employment to offer him another except
if the transfer is to liberate a worker from
oppressive terms and conditions of
employment (NOTE: it is not necessary
that worker was actually induced or did
quit employment)
to influence or attempt to influence any person
or entity not to employ any worker who
has not applied for employment in his
agency
to engage in the recruitment or placement of
workers in jobs harmful to public health
or morality or to the dignity of the Phil.
Obstruct or attempt to obstruct inspection by
Secretary
Fail to file reports
Substitute or alter employment contracts
BBecome officer or Board member of
corporation engaged in travel agency
WWithhold or deny travel documents before the
departure for monetary or financial
consideration other than those
authorized by the Code.
FFailure to actually deploy without valid reason
as determined by the DOLE
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 workers fault
THE QUALIFYING CIRCUMSTANCES
THAT WOULD MAKE ILLEGAL
RECRUITMENT AS A CRIME
INVOLVING ECONOMIC SABOTAGE
ARE :
When committed by a SYNDICATE i.e., if it is
carried out by a group of three (3) or more
persons conspiring and confederating with
one another; or
When committed in a LARGE SCALE i.e., if it is
committed against three (3) or more
persons
VENUE OF ACTIONS ON ILLEGAL
RECRUITMENT:
RTC of the province or city where the offense
was committed; or
where the offended party resides at the time of
the commission of the offense
at the option of the complainant
These circumstances only qualify. They do not
define the offense themselves
Recruitment and placement activities of
agents or representatives appointed by a
licensee, whose appointments were not
previously authorized by the POEA shall
likewise constitute illegal recruitment.
ART. 38 ( c ) declared unconstitutional since
only a judge may issue search
warrant/ warrant of arrest. The Sec.
Of Labor may only recommend not
issue. However, Closure of
establishments of illegal recruiters
may still be ordered by Secretary of
Labor, same being essentially
administrative and regulatory in
nature.(Salazar vs.
Achacoso and Marquez)
PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall
prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.
TITLE II
EMPLOYMENT OF NON-RESIDENT
ALIENS
ART 40. EMPLOYMENT PERMIT OF
NON-RESIDENT ALIENS
-Foreigners or domestic and foreign employers
desiring to employ aliens must secure
employment permit from the DOLE upon
determination of the non-availability of a person
in the Philippines who is competent, able and
willing at the time of the application to perform
the services for which the alien is desired.
Foreigners may not be employed in certain
nationalized business.
a non-resident alien worker and the employer
shall bind themselves to train at least 2 Filipino
understudies.
PROHIBITION AGAINST
EMPLOYMENT OF ALIENS
Section 2-A of the Anti-Dummy Law prohibits
the employment of aliens in establishment or
entities which have under their name or control a
right, franchise, privilege, property or business
the exercise or enjoyment of which property or
business the exercise or enjoyment of which is
expressly reserved by the Constitution or the
laws to citizens of the Philippines or to
corporations or associations at least 60% of the
capital of which is owned by such citizens.
EXCEPTIONS TO THE
PROHIBITION:
where the Secretary of Justice specifically
authorizes the employment of technical
personnel; or
where the aliens are elected members of the
board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.
BOOK TWO
 HUMAN RESOURCES
DEVELOPMENT
TITLE I
NATIONAL MANPOWER
DEVELOPMENT PROGRAM
CHAPTER I
NATIONAL POLICIES AND
ADMINISTRATIVE MACHINERY FOR
THEIR IMPLELENTATION
ART 45. DEFINITIONS
MANPOWER - that portion of the nations
population which has actual or potential
capability to contribute directly to the production
of goods and services.
ENTREPRENEURSHIP - training for self-
employment or assisting individual or small
industries within the purview of this the LC.
TITLE II
TRAINING AND EMPLOYMENT OF
SPECIAL WORKERS
CHAPTER I
APPRENTICES
Types of Special Workers:
Apprentice
Learners
Handicapped
ART 58. DEFINITION OF TERMS
APPRENTICESHIP - practical training on the
job supplemented by related theoretical
instruction
APPRENTICE - worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recognized under this chapter
APPRENTICEABLE OCCUPATION - any
trade, form of employment or occupation which
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction
APPRENTICESHIP AGREEMENT -
employment contract wherein the employer
binds himself to train the apprentice and the
apprentice in turn accepts the terms of training
ON-THE-JOB TRAINING the practical
work experience through actual participation
in productive activities given to or acquired by
an apprentice
HIGHLY TECHNICAL INDUSTRIES trade,
business, enterprise, industry or other activity,
which is engaged in the application of
advanced technology
ART 59. QUALIFICATIONS OF
APPRENTICES
Qualifications of an Apprentice
at least 15 years of age; provided those who are
at least 15 years of age but less than
eighteen may be eligible for apprenticeship
only in non-hazardous occupations and the
apprenticeship agreement shall be signed in
his behalf by the parent or guardian or
authorized representative of DOLE.
vocational aptitude/ capacity for appropriate test
ability to comprehend and follow oral and written
instructions
ART 60. EMPLOYMENT OF
APPRENTICES
Only employers in highly technical industries
may hire apprentices and only in
apprenticeable occupations as
determined by the Sec. Of Labor
Requisites for a VALID
APPRENTICESHIP
QUALIFICATIONS OF THE APPRENTICE
APPRENTICESHIP AGREEMENT DULY
EXECUTED AND SIGNED PROVIDING FOR
COMPENSATION NOT LESS THAN 75% OF
THE APPLICABLE MINIMUM WAGE, EXCEPT
ON-THE-JOB TRAINING (OJT)
3.APPRENTICESHIP PROGRAM DULY
APPROVED BY DOLE
PERIOD OF APPRENTICESHIP SHALL NOT
EXCEED 6 MONTHS.
ART 71. DEDUCTIBILITY OF TRAINING
COSTS
an
 Requisites for tax deductions in case learner as regular
employers have apprenticeship employee if he
programs: desires upon
completion of
Program duly recognized by the Department of learnership
Labor 4. In case of 4. Learner is
Deduction shall not exceed 10% of direct
labor wage pretermination of considered as a
Pay his apprentices the minimum wage the apprenticeship regular employee
agreement, the in case of
worker is not pretermination of
ART 72. APPRENTICES WITHOUT
considered as a contract after 2
COMPENSATION regular employee mos. of training
and the dismissal
Apprentices who may be hired without is without fault of
compensation: learner
5. Highly technical 5. Semi-skilled /
1.those whose training on the job
is required by the school; industries and only industrial
2.Training Program Curriculum; in industrial occupations
3.Requisite for Graduation; or occupation
4.A requisite for Board Examination
Learners in piecework/ incentive - rate jobs
are to be paid in full for the work done.
CHAPTER II
LEARNERS
CHAPTER III
ART 73. LEARNERS DEFINED HANDICAPPED WORKERS
LEARNERS - persons hired as trainees in ART 78. DEFINITION
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be HANDICAPPED WORKERS - Are those
learned thru practical training on the job in a whose earning capacity is impaired by age or
relatively short period of time which shall not physical or mental deficiency or injury.
exceed 3 mos.
Subject to the provisions of the Code,
APPRENTICESHIP LEARNERSHIP handicapped workers may be hired as
regular workers, apprentices or learners
1. Practical training on 1. Hiring of persons if their handicap is not such as to
effectively impede the performance of job
the job as trainees in operations in the particular occupations for
supplemented by semi-skilled and which they were hired.
related theoretical other industrial
instruction. occupations which qualified disabled employee shall be subject to
are non- the same terms and conditions of
apprenticeable and employment and the same compensation,
which may be privileges, benefits, fringe benefits,
learned thru incentives or allowances as a qualified able-
practical training bodied person. Even a handicapped worker
on the job in a can acquire the status of a regular
relatively short employee.
period of time.
2. Not less than 3 2. Practical training Duration of employment - no minimum, no
maximum. Dependent on agreement but is
months practical on the job not to necessary that there is a specific duration
training on the job exceed 3 mos.
but not more than 6 BOOK THREE
months CONDITIONS OF EMPLOYMENT
3. No Commitment to 3. With Commitment

hire to employ the

 TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HOURS OF WORK
ART 82. COVERAGE
ELEMENTS OF EMPLOYER-
EMPLOYEE RELATIONSHIP:
selection and engagement of the
employee
the payment of wages
the power of dismissal
the employers power to control the
employee (with respect to the
means and methods by which the
work is to be accomplished)
The last element as mentioned above is what is
known as the CONTROL TEST - whether
the employer controls or has reserved the
right to control the employee not only as to
the result of the work to be done but also as
to the means and methods by which the
same is to be accomplished. This last
element is the most important index of the
existence of the relationship.
EMPLOYEE - A natural person who is hired,
directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the hirer who, directly or
through an agent, supervises or controls
the work performance and pays the salary
or wage of the hire.
Employees Exempt from the Benefits
of E-E Relationship
Government Employees
Managerial Employees
Field Personnel
Family Members dependent on the
employer for support
Domestic Helpers
Persons on the Personal Service of another
Workers Paid by Result
GOVERNMENT EMPLOYEES - Refers only
to employees of government agencies,
instrumentalities or political subdivisions
and of government corporations that are
not incorporated under the Corporation
Code, meaning those which have original
charters.
MANAGERIAL EMPLOYEES - Refer to those
whose primary duty consists of the
management of the establishment in which
they are employed or of a department or
subdivision thereof and to other members
of the managerial staff
Note: Definition applies only to the 8-
hour Labor law
FIELD PERSONNEL - Refer to non-
agricultural employees who regularly
perform their duties away from the principal
place of business or branch office of the
employer and whose actual hours of work
in the field cannot be determined with
reasonable certainty.
WORKERS PAID BY RESULTS - Method of
computing compensation based on the
work completed and not on the time spent
in working.
PIECE-RATE METHOD - Where pay is
dependent on unit of product finished, preferred
where the work process is repetitive and the out
put is standardized and easily countable.
DOMESTIC HELPERS/ PERSONS
RENDERING PERSONAL SERVICES - Perform
services in the employers home which are
usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
to the personal comfort, convenience or safety
of the employer, as well as the members of the
employers household.
The existence of employment relationship is
determined by law and not by contract.
Whether or not an employer-employee
relationship exists between the parties is a
question of fact. The findings of the
NLRC are accorded not only respect but
finality if supported by substantial
evidence.
MANAGEMENT PREROGATIVE - except as
otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools
to be used, processes to be followed,
supervision of workers, working regulations,
transfer of employees, work supervision, lay-off
of workers and discipline, dismissal and recall of
workers.
Management prerogative recognizes the right
of the employer to advance its interest to
prescribe standards of work and impose
reasonable quotas or work
 assignments, and failure on the part of the
employees to meet the requirement, impose
in good faith, constitutes a just cause for his
dismissal.
New owner/management group has no
obligation to re-employ workers who
freely and voluntarily accepted their
separation pay and other benefits. A
change of ownership in a business concern
is not proscribed by law.
ART 83. NORMAL HOURS OF WORK
Shall not exceed 8 hours in a regular working
day
PURPOSE
to safeguard the health and welfare of the
laborer and in a way to minimize
unemployment by utilizing different shifts
REGULAR WORKING DAYS: The regular
working days of covered employees shall not be
more than five days in a workweek. The
workweek may begin at any hour and on any
day, including Saturday or Sunday, designated
by the employer.
ART 84. HOURS WORKED
SHALL INCLUDE:
All time during which an employee is required to
be on duty or to be at a prescribed
workplace; and
All time during which an employee is suffered or
permitted to work
PRINCIPLES IN DETERMINING
HOURS WORKED:
All hours are hours worked which the employee
is required to give to his employer,
regardless of whether or not such hour are
spent in productive labor or involve physical
or mental exertion;
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
workplace;
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 is with the knowledge of his employer
or immediate supervisor
The time during which an employee is inactive
by reason of interruptions in his work
beyond his control shall be considered time
either if the imminence of the resumption of
work requires the employees presence at
the place of work or if the interval is too brief
to be utilized effectively and gainfully in the
employees own interest.
Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
ENGAGED TO WAIT - when waiting is an
integral part of the job, it is compensable
WAITING TO BE ENGAGED - idle time is not
working time, not compensable
WHEN TRAVEL TIME COMPENSABLE:
Travel from home to work- refers to ordinary
work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace,
the time spent on travel is compensable
Travel that is all in a days work- time spent by
an employee in travel as part of his principal
activity, such as travel from jobsite to jobsite
during the workday, must be counted as
hours worked.
Travel away from home- travel that keeps an
employee away from home overnight.
Work hours of seamen are governed by
the same rules as land based employees.
Thus, they must show sufficient proof that
said work is actually performed.
Rest Periods of short duration during
working hours shall be considered as
hours worked.
Preliminary activities compensable when
controlled or required by employer and are
pursued necessarily and primarily for the
employers benefit,
ART 85. MEAL PERIODS
MEAL PERIODS
Should not be less than sixty (60) minutes, and
is time-off/non-compensable
Under specified cases, may be less than sixty
(60) minutes, but should not be less
 than twenty (20) minutes an must be with full
pay.
If less than twenty(20) minutes, it becomes only
a rest period and is thus considered as work
time
NOTE: Employee must be completely
relieved from duty. Otherwise, it is
compensable as hours worked.
Mealtime is not compensable EXCEPT in
cases where the lunch period or meal time is
predominantly spent for the employers
benefit or where it is less than 60
minutes.
Employees may request that their meal period
be shortened so that they can leave work
earlier that the previously established
schedule.
REQUISITES :
The employees voluntarily agree in writing to a
shortened meal period and are willing to
waive the overtime pay for such shortened
meal period;
No diminution whatsoever in the salary and
other fringe benefits of the employees
existing before the effectivity of the
shortened meal period;
Work does not involve strenuous physical
exertion and they are provided with
adequate coffee breaks;
The value of benefits is equal with the
compensation due them for the shortened
meal period
OT pay will become due and demandable after
the new time schedule; and
The arrangement is of temporary duration.
ART 86. NIGHT SHIFT DIFFERENTIAL
NIGHT SHIFT DIFFERENTIAL -Additional
compensation of not less than ten percent
(10%) of an employees regular wage for every
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the
workers regular shift.
If work done between 10 PM and 6 AM is
overtime work, then the 10% night shift
differential should be based on his
overtime rate.
RATIONALE
- it serves as an inducement of employment
ART 87. OVERTIME WORK
O VERTIME PAY- Additional compensation
for work performed beyond eight (8) hours
within the workers 24-hour workday.
30% of 130% if on a special holiday/rest day
25% of regular wage if done on a regular
workday
30% of 150% if on special holiday AND rest day
30% of 200% if on a regular holiday
RATIONALE
employee is given OT pay because he is made
to work longer than what is commensurate with
his agreed compensation for the statutorily fixed
or voluntarily agreed hours of labor he is
supposed to do.
As a rule, cannot be waived, as it is intended to
benefit laborers and employees. But when
the waiver is made in consideration of
benefits and privileges which may even
exceed the overtime pay, the waiver may be
permitted.
NOTE: OT pay will not preclude payment of
night shift differential pay.
Meal periods during overtime work is not
given to workers performing overtime for
the reason that OT work is usually for a
short period ranging from one to three hours
and to deduct from the same one full hour
as meal period would reduce to nothing the
employees OT work.
WORK DAY - the 24-hour period which
commences from the time the employee
regularly starts to work. e.g., if the worker starts
to work 8 am today, the workday is from 8am
today up to 8 am tom.
The minimum normal working hours fixed by the
Act need not be continuous to constitute
the legal working day
Express approval by a superior is not a
prerequisite to make overtime work
compensable. HOWEVER, written authority
after office hours during rest days and
holidays are required for entitlement to
compensation.
The right to OT pay cannot be waived.
Such waiver is contrary to law and
public policy.
EXCEPTIONS:
When the waiver stipulates higher payment or
rate of OT pay; or
Where the contract of employment requires
work for more than eight hours of work at
specified wage per day providing for a fixed
hourly rate or that the daily wages include
overtime pay.
COMPRESSED WORKWEEK -allowable
under the following conditions:
It is voluntary on the part of the worker
There will be no diminution of the weekly or
monthly take-home pay and fringe benefits
of the employees;
The value of the benefits that will accrue to the
employees under the proposed schedule is
more than or at least commensurate with the
one-hour OT pay that is due them during
weekdays based on the employees
quantification
The one-hour OT pay will become due and
payable if they are made or permitted to
work on a day not scheduled for work on the
compressed work week
The work does not involve strenuous physical
exertion and employees must have adequate
rest periods
5. The arrangement is of temporary duration.
ART 88. UNDERTIME NOT OFFSET BY
OVERTIME
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 the additional
compensation.
RATIONALE
An employees regular pay rate is lower than the
overtime rate. Offsetting the undertime hours
against the overtime hours would result in
undue deprivation of the employees extra
pay for overtime work.
ART 89. EMERGENCY OVERTIME
WORK
WHEN WORKER MAY BE REQUIRED
TO RENDER OT:
(WNUNCN)
1. Country is at war or any other national/local
emergency has been
declared by the Chief
Executive/Congress
2. Necessary to prevent loss of life/property/ in
case of actual/impending emergency in
the locality
3. There is urgent work to be performed on
machines, installations, or equipment in
order to avoid serious loss/damage to
the employer or some other causes of
similar nature
4. Work is necessary to prevent loss/damage to
perishable goods; and
5. where the completion or continuation of the
work started before the eighth hour is
necessary to prevent serious obstruction
or prejudice to the business or
operations of the employer.
6. when it is necessary to avail of favorable
weather or environmental conditions
where performance or quality of work is
dependent thereon
ART 90. REGULAR WAGE
include the cash wage only, without deduction
on account of facilities provided by the
employer
CHAPTER II
WEEKLY REST PERIOD
ART 91. RIGHT TO A WEEKLY REST
DAY
Employees should be provided a rest period of
not less than twenty four (24)
consecutive hours after every six (6)
consecutive normal work days.
Employer shall schedule the weekly rest day of
his employees subject to collective
bargaining agreement. However, the
employer shall respect the preference of
employees as to their weekly rest day
when such preference is based on
religious grounds. But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employees choice
for at least two (2) days a month
ART 92. WHEN EMPLOYER MAY
REQUIRE WORK ON A REST DAY
WHEN EMPLOYEE MAY BE REQUIRED
TO RENDER WORK ON A REST
DAY:
In case of actual or impending emergencies
caused by serious accident, fire, flood
typhoon, earthquake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
urgent work to be performed on the machinery,
equipment or installation to avoid serious
loss which the employer would otherwise
suffer
abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be expected to resort to other
measures
prevent serious loss of perishable goods
nature of work requires continuous operation for
seven days a week
work is necessary to avail of favorable weather
or environmental conditions where
performance or quality of work depends
upon them
ART 93. COMPENSATION FOR REST
DAY, SUNDAY OR HOLIDAY WORK
this article does not prohibit a stipulation in the
CBA for higher benefits
SPECIAL HOLIDAYS
All Saints Day -November 1
Last Day of the Year-December 31
And all other days declared by law or ordinances
to be a special holiday or non-working day
NOTE: worked = regular wage plus 30%
premium pay
not worked = none
ADDITIONAL COMPENSATION FOR
WORK ON A REST DAY, SUNDAY OR
HOLIDAY WORK:
Work on a scheduled rest day - 30% of regular
wage
No regular workdays and rest days -30% of
regular wage for work on Sundays &
Holidays
Work on Special Holidays -30% of regular wage
Holiday Work falls on Scheduled Rest Day -
50% of regular wage
CHAPTER III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
ART 94. RIGHT TO HOLIDAY PAY
HOLIDAY PAY - A days pay given by law to
an employee even if he does not work on a
regular holiday. It is limited to the ten (10)
regular holidays listed by law.
employee should not have been absent without
pay on the working day preceding the regular
holiday
Art. 94(b) refers to regular holidays, special
holidays are taken care of under Art. 93.
PREMIUM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.
REGULAR HOLIDAYS:
1. New Years Day -January 1
2. Maundy Thursday -Movable date
3. Good Friday- Movable date
Araw ng Kagitingan -April 9
Labor Day -May 1
Independence Day -June 12
National Heroes Day`-Last Sunday of August
Bonifacio Day-November 30
Christmas Day-December 25
Rizal Day-December 30
Note: Compensable whether worked or
unworked.
DOUBLE HOLIDAY PAY
200% of the basic wage provided, he works
on that day and was present or on leave
with pay on the preceding workday. If on
leave without pay, rate still applies if leave is
authorized.
400% if he worked as per DOLE Memo if there
are 2 regular holidays in one day eg. April 9
and Good Friday. Provided the employee
worked on the day prior to the regular
holiday or on leave with pay or on
authorized absence.
If there are two succeeding holidays eg.,
Maundy Thursday and Good Friday, the
employee must be present the day before
the scheduled regular holiday to be entitled
to compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.
REGULAR SPECIAL
HOLIDAY HOLIDAY
- compensable even - not compensable if
 if unworked subject unworked considered integrated in their wages on
to certain conditions the basis of the average monthly share of
- limited to the 10 - not exclusive since each employee for the past 12 months
immediately preceding the abolition.
enumerated by the law may provide for
LC other special
holidays TITLE II
- rate is twice the - rate is 130% if WAGES
regular rate if worked
worked CHAPTER I
PRELIMINARY MATTERS

ART 95. RIGHT TO SERVICE ART 97. DEFINITION

INCENTIVE LEAVE
SERVICE INCENTIVE LEAVE (SIL) - Five (5)
days leave with pay for every employee
who has rendered at least one (1) year of
service.
BUT DOES NOT APPLY TO THOSE
WHO ARE:
already enjoying the said benefits; or
enjoying vacation leave with pay for at least 5
days
those employed in establishments regularly
employing less than 10 employees
those employed in establishments exempted
from granting this benefit by the Secretary
of Labor.
ONE (1) YEAR OF SERVICE.- service within
12 months, whether continuous or broken,
reckoned from the date the employee started
working including authorized absences and paid
regular holidays unless the number of working
day in the establishment as a matter of practice
or policy, or provided in the employment contract
is less than 12 mos.
SIL is commutable i.e., convertible to cash- the
cash equivalent is aimed primarily at
encouraging workers to work continuously
and with dedication to the company.
ART 96. SERVICE CHARGES
TO BE DISTRIBUTED TWICE A
MONTH AND AT THE RATE OF:
85% for all covered employees to be equally
distributed among them
15% for management (may answer for losses
and breakages or distributed to
management)
WAGE - the remuneration or earnings,
however designated, capable of being
expressed in terms of money, whether fixed
or ascertained on a time, task, piece, or
commission basis or other method or
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 includes
the fair and reasonable value of board,
lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAYS WAGE FOR A 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
management or was illegally locked out,
suspended or dismissed.
WAGE SALARY
- compensation for - denotes higher
manual labor degree of
employment
- Not subject to - subject to execution
execution (Gaa vs. CA)
FACILITIES shall include all articles or
services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employers business.
FACILITIES SUPPLEMENTS

If collection of service charges is abolished, the

share of covered employees shall be
 - Are items of - Constitute extra 3. It is not due to an error in the construction
/application of a doubtful or difficult question
expense necessary remuneration or of law.
for the laborers and special privileges or
his familys benefits given to or But even in cases of error, it should be shown
existence and received by the that the correction is being done soon after
subsistence laborers over and the discovery of the error.
above their ordinary
earnings wages BONUS - A supplement or employment
- part of the wage - independent of the benefit given under certain conditions, such
as success of the business or greater
wage production or output. As a rule, it is an
- deductible from the - not wage amount granted voluntarily to an employee
for his industry and loyalty which
wage deductible contributed to the success and realization
of profits of the employers business.
ART. 98. APPLICATION OF TITLE Therefore, from a legal point of view, it is
not a demandable and enforceable
This Title shall not apply to the obligation. Unless, it was promised to be
following: given without any conditions imposed for its
payment, as such, it is deemed part of the
household or domestic helpers wage.
homeworkers engaged in needle-work
workers employed in any establishment duly 13 TH MONTH PAY (OR ITS EQUIVALENT)
registered with the National Cottage Industry -additional income based on wage required by
P.D. 851 which is equivalent to 1/12 of the total
Workers in any duly registered cooperatives basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than Dec.
24
CHAPTER II
MINIMUM WAGE RATES COVERAGE:
All rank-and-file employees regardless of their
ART 100. PROHIBITION AGAINST designation or employment status and
ELIMINATION OR DIMUNITION OF irrespective of the method by which their wages
BENEFITS are paid, are entitled to this benefit, provided,
that they have worked for at least one (1)
LEGAL REQTS. BEFORE FACILITIES month during the calendar year.
CAN BE DEDUCTED FROM THE FORMS:
EMPLOYEES WAGES:
Christmas bonus
Proof that such facilities are customarily midyear bonus
furnished by the trade ; profit sharing payments; and
Voluntarily Accepted in writing by the employee other cash bonuses amounting to not less than
Charged at Fair & Reasonable Value
1/12 of its basic salary.
THE NON-DIMINUTION RULE -the benefits Difference of opinion on how to compute the 13th
being given to employees cannot be taken
month pay does not justify a strike
back or reduced unilaterally by the
employer because the benefit has become It must always be in the form of legal tender
part of the employment contract, written or . Free rice, electricity cash and stock
unwritten. dividends, COLA not equivalent
The rule is applicable if it is shown that
the grant of the benefit is:
based on an express policy, or
has ripened into practice over a long period of
time, and the practice is consistent and
deliberate. ART 101. PAYMENT BY RESULTS
wages shall be paid directly to the workers to
whom they are due.

EXCEPTIONS:
in case of force majeure/special circumstances,
payment may be made through another
person under written authority where the
worker has died, the
employer may pay the wages of the deceased
worker to the heirs of the latter, through the
Secretary of Labor or his representative,
without the necessity of intestate
proceedings, after the heirs have executed
an affidavit attesting to their relationship to
the deceased and the fact that they are his
heirs to the exclusion of all others

ART 106. CONTRACTOR OR

SUBCONTRACTOR
LABOR ONLY CONTRACTING - where the
person supplying workers to an employer does
not have substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.

INDEPENDENT CONTRACTOR - one who

exercises independent employment and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer except as to the result
thereof.

A mere statement in a contract with a

company that laborers who are paid
according to the amount and quality of work
are independent contractors does not
change their status as mere employees
in contemplation of labor laws.

REQUISITES FOR A CONTRACTING

OR SUBCONTRACTING TO BE :
where the contractor or subcontractor carries on
a distinct and independent business and
undertakes to perform the job on his own
account and under his own responsibility,
according to its own manner and method
and free from the control and direction of the
principal in all matters connected with the
performance of the work except as to the
results thereof;
the contractor or subcontractor has
substantial capital or investment; and
3.

Regional Tripartite Wages and Productivity
Board
Congress
MINIMUM WAGE - The lowest wage rate fixed
by law that an employer can pay his
employees.
ART. 123 WAGE ORDER
WAGE ORDER an order issued by the
Regional Board whenever the conditions in the
region so warrant after investigating and
studying all pertinent facts and based on the
standards and criteria prescribed by the LC, the
Regional Board proceeds to determine whether
to issue the same or not.
EFFECTIVITY of a wage Order it shall take
effect after 15 days from the its complete
publication in at least one newspaper of general
circulation in the region.
FREQUENCY of a wage order - Wage Order
issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no
petition for wage increase shall be entertained
during said period. EXCEPTION: When
Congress itself issues a law increasing wages.
ART 124. STANDARDS/CRITERIA FOR
MINIMUM WAGE FIXING
FACTORS FOR DETERMINING
REGIONAL MINIMUM WAGE RATES
(DACNNIPFEE)
Demand for living wages;
Wage Adjustment vis-a vis the consumer price
index;
Cost of living and changes or increases therein;
Needs of workers and their families;
Need to induce industries to invest in the
countryside;
Improvements in standards of living;
Prevailing wage levels;
Fair Return of the capital invested and capacity
to pay of employers;
Effects on Employment Generation and Family
Income;
Equitable Distribution of Income & Wealth along
the imperatives of economic and social
development
WAGE DISTORTION - situation where an
increase in prescribed wage rates 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.
CORRECTING WAGE DISTORTION
Unionized Establishment
Negotiate to correct the distortion.
Any dispute arising therefrom should be
resolved through grievance procedure under
their CBA.
If the dispute remains unresolved, through
voluntary arbitration.
Establishments without Unions
The employers and workers shall endeavor to
correct the distortion.
Any dispute arising therefrom shall be
settled through the NCMB and
If it remains unresolved after 10 days of
conciliation, it shall be referred to the NLRC.
Wage distortion is non- strikeable.
Is the employer legally obliged to try
& correct a wage distortion?
It appears so. Article 124 of the Code
provides that the employer and the union shall
negotiate to correct the distortions. If there is no
union, the employer and the workers shall
endeavor to correct such distortions.
Must the previous pay gaps be
restored?
While that is the aim, it need not
necessarily be restored to the last peso. An
appreciable differential, a significant pay gap
should suffice as correction of the distortion.
CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
ART. 128. VISITORIAL AND
ENFORCEMENT POWER
ART. 129. RECOVERY OF WAGES,
SIMPLE MONEY CLAIMS AND OTHER
BENEFITS
Under Art. 129, the Regional Director is
empowered through summary proceeding
and after due notice, to hear and decide
cases involving recovery of wages and other
monetary claims and benefits, including
legal interests.
 REQUISITES : 1. Visitorial and 1. Power of the

The claim is presented by an employee or enforcement Regional Director or

person employed in domestic or household power of the any duly authorized
service or househelper; Secretary of hearing officers to
The claim arises from employer-employee Labor /his duly hear and decide
relations; authorized matters involving
The claimant does not seek reinstatement; and representatives the recovery of
The aggregate money claim of each employee exercised through wages, upon
or househelper does not exceed P5, 000.00 routine complaint of any
inspections of interested party
Access to employers records and premises establishments
the day/night whenever work is being 2. requires the 2. E-E relationship not
undertaken therein
includes the right to copy therefrom, to existence of E-E necessary since it
question any employee & investigate Relationship should not include a
any fact, condition or matter which may claim for
be necessary to determine violations or reinstatement
which may aid in the enforcement of the 3. No limit as to 3. Aggregate claim of
Code and of any labor law, wage order,
or rules and regulations amount of claim each complainant
does not exceed
Issue Compliance Orders (ART. 128) P5,000
based on the findings of labor 4. Appeal is with 4. Appeal with NLRC;
employment and enforcement officers or
industrial safety engineers made in the Sec.of Labor ; period of appeal is
course of inspection period of appeal 5 calendar days
is 10 calendar
Issue Writs of Execution (ART. 128) days
for the enforcement of orders 5. Person exercising 5. The power is
except in cases where the employer
contests the findings of the said labor the power is the vested upon a
officers and raises issues supported by Sec. Of Labor or regional director or
documentary proofs which were not any of his duly any duly authorized
authorized hearing officer of
considered in the course of inspection.
representatives the DOLE.
Order Work Stoppage/Suspension of who may or may
Operations not be a regional
when non-compliance with the law or director
implementing rules and regulations
poses grave & imminent danger to the
health and safety of the workers in the TITLE III
workplace. WORKING CONDITIONS FOR
Conduct Hearings within 24 hours SPECIAL GROUP OF EMPLOYEES
to determine whether an order for
stoppage of work/suspension of
operations shall be lifted or not. CHAPTER I
employer shall pay the employees EMPLOYMENT OF WOMEN
concerned their salaries in case the
violation is attributable to his fault ART 130. NIGHTWORK PROHIBITION
Require employers to keep and maintain
Employment Records No woman , regardless of age, shall be
- as may be necessary in aid of his employed or permitted or suffered to work,
visitorial and enforcement powers with or without compensation in any :

Industrial undertaking between 10PM-6AM

ART 128 ART 129 Commercial/Non-Industrial undertaking between
12 MN-6AM
Agricultural undertaking at nighttime unless, she
is given a period of rest of not less than 9
consecutive hours
 ART 131. EXCEPTIONS
Actual/Impending Emergencies caused by
serious accident, flood, typhoon,
epidemic or other disasters or calamity,
to prevent loss of life or property, or in
cases of force majeure or imminent
danger to public safety
Urgent work to be performed on machineries,
equipment or installation, to avoid serious
loss
Work is necessary to prevent serious loss of
perishable goods
Where she holds a responsible position of
managerial/technical nature/engaged to
provide health and welfare service
Nature of the work requires the manual skill and
dexterity of women workers & cannot be
performed with equal efficiency by male
workers
Where women workers are immediate family
members of the family operating the
establishment or undertaking
Analogous cases
ART 132. FACILITIES FOR WOMEN
The Secretary of Labor may require employers
to:
Provide seats proper for women and permit
them to use the seats when they are free
from work or during office hours provided
the quality of the work will not be
compromised;
To establish separate toilet rooms and lavatories
for men and women and provide at least a
dressing room for women;
To establish a nursery in the establishment;
To determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like
ART. 133 MATERNITY LEAVE
BENEFITS
MATERNITY LEAVE UNDER THE SSS LAW
A female member, who need not be
legally married, who has paid for at least three
(3) monthly contributions in the 12-month
period immediately preceding the semester of
her childbirth or miscarriage shall be paid a daily
maternity benefit equivalent to 100% of her
average daily salary credit for 60 days or 78
days, in case of caesarian delivery.
REQUISITES :
Employee notified her employer of her
pregnancy of the probable date of her
childbirth
Full payment be advanced by the employer
within 30 days from the filing of the maternity
leave application
That payment of daily maternity benefits shall be
a bar to the recovery of sickness benefits
That the maternity benefits shall be paid only for
the first four (4) deliveries or miscarriages
That the SSS shall immediately reimburse the
employer of 100% of the amount of
maternity benefits advanced to the
employee by the employer
That if an employee member should give birth or
suffer a miscarriage without the required
contributions having been remitted for her by
her employer to the SSS, or without the
latter having been previously notified by the
employer of the time of the pregnancy, the
employer shall pay to the SSS damages
equivalent to the benefits which said
employee member would otherwise have
been entitled to.
ART 133 (b) subsists, i.e., the maternity leave
shall be extended without pay on account of
illness medically certified to arise out of the
pregnancy, delivery, abortion, or
miscarriage, which renders the woman unfit
for work , unless she has earned unused
leave credits from which such extended
leave may be charged.
LIMIT OF THE BENEFIT: Applies only for the
first four deliveries irrespective of who is the
father of the children, and may not be availed of
in addition to sickness benefit under the Social
Security program.
RA 8187 (PATERNITY LEAVE)
This law grants paternity leave of seven day
with full pay to all married male employees
in the private and public sectors.
It is available only for the first four deliveries of
the legitimate spouse with whom
the husband is cohabiting.
DELIVERY includes childbirth, miscarriage, or
abortion.
Purpose: to enable the husband to lend support
to his wife during the period of recovery and/or
in the nursing of the newly born child.
 CONDITIONS :
he is an employee at he time of the delivery of
his child;
he is cohabiting with his spouse at the time she
gives birth or suffers a miscarriage;
he has applied for paternity leave ; and
his wife has given birth or suffered a miscarriage
Paternity leave, if not availed of, is not
convertible to cash.
WIFE - refers to the lawful wife which means the
woman who is legally married to the male
employee concerned.
Where the male employee is already enjoying
the paternity leave by reason of any law,
decree, executive orders or any contract,
agreement or policy between employer and
employee and the existing paternity benefit
is greater, the greater benefit shall prevail;
if lesser, the existing benefit shall be
adjusted to the extent of the difference.
ART 135. DISCRIMINATION
PROHIBITED
It shall be unlawful for any employer to
discriminate against any woman employee
with respect to terms and conditions of
employment solely on account of her sex.
Acts of Discrimination:
Payment of a lesser compensation for work of
equal value.
Favoring a male employee over a female
employee solely on the account of their
sexes.
Sexual Harassment in a Work-Related or
Employment Environment :
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 anyway would
discriminate, deprive or diminish
employment opportunities or otherwise
adversely affect said employee
the above acts would impair the employees
rights or privileges under existing
labor laws or
The above acts would result in an
intimidating, hostile, or offensive
environment (Sec. 3[a], RA No. 7877)
ART 136. STIPULATION AGAINST
MARRIAGE
it shall be unlawful for an employer to require as
a condition for employment or continuation of
employment that a woman employee shall not
get married, or to stipulate expressly or tacitly
that upon getting married a woman employee
shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely
by reason of her marriage.
ART 138. CLASSIFICATION OF
CERTAIN WOMEN WORKERS
Any woman who is permitted to work or suffered
to work, with or without compensation, in
any night club, cocktail lounge, massage
clinic, bar or similar establishment, under the
effective control or supervision of the
employer for a substantial period of time as
determined by the Secretary of Labor, shall
be considered as an employee of such
establishment for purposes of labor and
social legislation.
CHAPTER II
EMPLOYMENT OF MINORS
ART 139. MINIMUM EMPLOYABLE AGE
Any person between ages 15 and 18 may be
employed in any non hazardous work.
Exception and condition on the
employment of a child below 15:
When the child works directly under the sole
responsibility of his/her parents or legal guardian
who employs members of his/her family only
under the following conditions:
employment does not endanger the childs
life, safety, health and morals
employment does not impair the childs
normal development
the parent/legal guardian provides the child
with the primary and/or secondary
education prescribed by DECS
Where the childs employment or participation in
public entertainment or information through
cinema, theater, radio, or television is essential,
provided that:
employment does not involve
advertisements or commercials
promoting alcoholic beverages,
intoxicating drinks, tobacco and its by-
products or exhibiting violence;
There is a written contract approved by the
DOLE; and
The conditions prescribed for the
employment of minors {above stated}
are met.
NONHAZARDOUS WORK OR UNDERTAKING
one where the employee is not exposed to any
risk which constitutes an imminent danger to his
safety and health.
HAZARDOUS WORKPLACES:
Where the nature of the work exposes the
workers to dangerous environmental
elements, contaminants or work conditions;
Where the workers are engaged in construction
work, logging, fire-fighting, mining,
quarrying, blasting, stevedoring, dock work,
deep-sea fishing, and mechanized farming;
Where the workers are engaged in the
manufacture or handling of explosives and
other pyrotechnic products;
Where the workers use or are exposed to heavy
or power-driven machinery or equipment;
and
Where the workers use or are exposed to
power-driven tools,
CHAPTER III
EMPLOYMENT OF HOUSEHELPERS
RIGHTS OF HOUSEHELPERS:
minimum cash wage
non-assignment to non- household work
opportunity for education: if under 18 (cause of
education part of compensation)
board/ lodging, medical attendance
just and humane treatment
indemnity for unjust termination of services
just causes for termination
right not to be required to work more than 10
hours a day
for days vacation each month
to regular wages if employed in industrial or
commercial or agricultural undertaking
funeral expenses must be paid by employer if
the househelper has no relatives with
sufficient means in the place where the head
of the family lives.
at least elementary education
employment certification
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
INDUSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
INDUSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
BOOK FOUR
HEALTH, SAFETY AND SOCIAL
WELFARE BENEFITS
TITLE I
MEDICAL, DENTAL AND
OCCUPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
ART 156. FIRST-AID TREATMENT
FIRST-AID TREATMENT adequate,
immediate, and necessary medical and dental
attention or remedy given in case of injury or
illness suffered by a worker during employment,
irrespective of whether or not such injury or
illness is work-connected, before a more
extensive medical and/or dental treatment can
be secured.
FIRST AIDER any person trained and duly
certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
organization accredited by the former.
TITLE II
EMPLOYEES COMPENSATION AND
STATE INSURANCE FUND
WORKMENS COMPENSATON- A general
and comprehensive term applied to those laws
providing for compensation for loss resulting
from the injury, disablement or death of a
workman through industrial accident, casualty or
disease.
COMPENSATION - Money relief afforded
according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for
breach of contract or for tort.

Conditions for an occupational

disease and the resulting disability or
WORKMENS EMPLOYEES death to be compensable :
COMPENSATION COMPENSATION
ACT LAW The employees work must involve the risk
1. There is a 1. no presumption of described therein
The disease was contracted as a result of the
presumption of compensability employees exposure to the described risks;
compensability The disease was contracted within a period of
2. there is a 2. no presumption of exposure and under such other factors
necessary to contract it;
presumption of aggravation There was no notorious negligence on the part
aggravation
of the employee
3. there is a need for 3. no need for the
DEATH - Loss of life resulting from injury or
the employer to employer to
sickness
controvert the controvert
claim within 14 DISABILITY -Loss or impairment of a
days otherwise
physical or mental function resulting from injury
he is deemed to
or sickness.
have waived the
right DIRECT PREMISES RULE as a general
4. payment of 4. payment of rule, the accident should have occurred at the
place of work to be compensable
compensation compensation
made by the made by SSS/GSIS
employer through the State
EXCEPTIONS TO THE DIRECT
Insurance Fund PREMISES RULE
INGRESS- EGRESS/ PROXIMITY RULE-when
the employer is about to leave or about to
ART 164. DEFINITION OF TERMS. enter the premises of the employer by way
of the customary or exclusive means of
INJURY - Any harmful change in the human
ingress or egress.
organism from any accident arising out of and in
the course of employment. GOING TO OR COMING FROM WORK-when
the injury occurred when the employee is
GROUNDS FOR AN INJURY TO BE proceeding to or from his work on the
COMPENSABLE premises of the employer
must be a continuing act and has not
the employee must have been injured at the diverted therefrom by any other activity
place where the work requires him to be and he has not departed from his usual
the employee must have been performing his route to or from his workplace and if the
official functions employee is on a special errand, it must
if the injury is sustained elsewhere, the have been official and in connection with
employee must have been executing an his work.
order for the employer
the injury was not due to the employees EXTRA-PREMISES RULE (or the shuttle bus
intoxication, willful intention to injure or kill rule) where the company provides the
himself or another, notorious negligence or means of transportation in going to or
otherwise prohibited under this Title. coming from the place of work is liable to the
injury sustained by the employees while on
SICKNESS - Any illness definitely accepted board said means of transportation.
as an occupational disease listed by the
Commission or any illness caused by SPECIAL ERRAND RULE injury sustained
employment subject to proof that the risk of outside the company premises is
contracting the same is increased by working compensable if his being out is covered by
conditions.
 an office order or a locator slip or a pass for
official business.
DUAL PURPOSE DOCTRINE allows
compensation where a special trip would
have to be made for the employer if the
employee had not combined the service for
the employer with his own going or coming
trip.
SPECIAL ENGAGEMENT RULE covers field
trips, outings, intramurals and picnics when
initiated or sanctioned by the employer
POSITIONAL AND LOCAL RISKS DOCTRINE
If an employee by reason of his duties is
exposed to a special or peculiar danger from
the elements, that is, one greater than that
to which other persons in the community are
exposed and an unexpected injury occurs,
the injury is compensable
FORCE MAJEURE OR AN ACT OF GOD-when
one in the course of his employment is
reasonably required to be at a particular
place at a particular time and there meets an
accident although one which any other
person then and there present would have
met irrespective of his employment.
CHAPTER II
COVERAGE AND LIABILITY
ART 168. COMPULSORY COVERAGE
ECL applies to all employers, public or private,
and to all employees, public or private
including casual, emergency, temporary, or
substitute employees.
Every employee is covered who is not over 60
years over 60 years of age or over 60 years
of age if he had been paying contributions
prior to the age of 60
ART 170. EFFECTIVE DATE OF
COVERAGE
The employer is covered compulsorily from first
day of operation and the employee from the
first day of employment
ART 172. LIMITATIONS OF LIABILITY
NO COMPENSATION can be obtained if the
injury, death or disability is a result of the
employees:
Intoxication;
Willful intention to injure or kill himself or
another;
Notorious negligence; or
Unless otherwise provided by the LC
NOTORIOUS NEGLIGENCE deliberate act
of the employee to disregard his own personal
safety.
Is death through suicide compensable ?
As a rule NO. However as held in NAESS
vs. NLRC, the supreme court ruled that a self
inflicted death could be compensable if :
by agreement of the parties
The suicide/death is caused by a work
related or compensable illness or
disease.
ART 173. EXTENT OF LIABILITY
Simultaneous recovery under the Labor Code
and the Civil Code cannot be made. The
action is selective and the employee may
either choose to file the claim under either.
But once the election is made, the claimant
cannot opt for the other remedy.
Simultaneous recovery under the LC and the
SSS can be made as per an advisory
opinion dated May 23, 1989 of Sec. Drilon
since PD 1921 has lifted the ban on
simultaneous recovery.
STATE INSURANCE FUND: all covered
employers are required to remit to a common
fund a monthly contribution equivalent to one
percent of the monthly salary credit of every
covered employee. The employee pays no
contribution to the fund. Any agreement to the
contrary is prohibited.
CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES:
TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not exceeding 120 days
PERMANENT TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period exceeding 120 days
PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
permanent partial loss of the use of any part of
his body.
DEATH BENEFITS
The System shall pay to the primary
beneficiaries upon the death of the covered
employee an amount equal to his monthly
income benefit, plus ten percent thereof for
each dependent child, but not exceeding
five, beginning with the youngest and
without substitution. The income benefit
shall be guaranteed for five years.
DEPENDENTS:
the legitimate, legitimated, legally adopted or
acknowledged natural child who is
unmarried, not gainfully employed and not
over 21 years of age or over 21 years of age
provided that he is incapable of self-support
due to a physical or mental defect which is
congenital or acquired during minority
legitimate spouse living with the employee
the parents of said employee wholly dependent
upon him for regular support
BENEFITS
for life to the primary beneficiaries, guaranteed
for five years
for not more than 60 months to the secondary
beneficiaries in case there are no primary
beneficiaries
in no case shall the total benefit be less that P
15, 000.00
THE BENEFICIARIES ARE:
PRIMARY BENEFICIARIES
Dependent spouse until he remarries
dependent children ( legitimate, legitimated,
natural born or legally adopted)
SECONDARY BENEFICIARIES
a. Illegitimate children and legitimate
descendants
b. parents, grandparents, grandchildren
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
ART 211. DECLARATION OF POLICY
LABOR RELATIONS LAW - Concerned with
the stabilization of relations of employer
and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor disputes through conciliation,
mediation and arbitration.
Absent an employer-employee relation, there is
no labor relations to speak of.
PARTIES TO LABOR RELATIONS
CASES:
The employees organization,
management, and
the public
The public is always to be considered in
disputes between labor and capital, and it
ahas been held that the rights of the
general public are paramount.
Labor relations policy under the LC is
embodied in Section 3 Article XIII of the
1987 Constitution which guarantees to all
workers their right among others to self-
organization, collective bargaining and
negotiations, peaceful land concerted
activities including the right to strike in
accordance with law, and to participate in
policy and decision making processes
affecting their rights and benefits as may be
provided by law.
ART. 212. DEFINITIONS
LABOR DISPUTE INCLUDES:
any controversy or matter concerning terms or
conditions of employment or
the association or representation of persons in
negotiating, fixing, maintaining, charging or
arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the proximate relation of
employer and employee.
EMPLOYEE- shall not be limited to the
employees of a particular employer.
it shall include any individual whose
work has ceased: as a result of or in
connection with any current labor
dispute; or because of unfair labor
practice
If he has not obtained any other:
Substantially equivalent and
Permanent employment