Exam coverage: (Midterms)

Previous lessons, Labor standard benefits (special laws- paternity leave, RA 8187, Maternity leave benefits
(SSS), for Gov’t employees-married only under GSIS so solo parent’s act included unmarried government
employees RA 8972, RA 9710 special employee, RA 9262) Legislation benefits (retirement benefits, RA
8558, PD 626 Employee’s compensation act, EEC, SSS, GSIS, Pag-ibig benefits, PhilHealth benefits,
Permanent/Temporary Disability

FUNDAMENTALS OF LABOR LAW

OUTLINE:
I. THE POLICY OF LABOR PROTECTION
a. CONSTITUTIONAL STATE POLICIES
i. LABOR IS AN ACTIVE AND EQUAL PARTNER
ii. FULL PROTECTION TO LABOR
1. FORMULA:
a. BY PROVIDING LABOR STANDARDS
b. PROMOTING THE RIGHT TO COLLECTIVE BARGAINING
c. BY PROVIDING SOCIAL BENEFITS
iii. PREFERENTIAL OPTION FOR FILIPINO WORKERS
b. SOURCES OF THE POWER TO ENACT LABOR LAWS
i. CONSTITUTION
1. Article II, Section 5
The maintenance of peace and order, the protection of life, liberty and property, and the promotion of the general
welfare are essential for the enjoyment by all the people of the blessings of democracy.
Peace and order- encompass industrial peace contemplating the harmonious relationship between employer and
employee.
Protection to life, liberty and property-is applicable to the labor sector considering that it had been held that
one’s employment is considered as property, from which emanates the right to live, and the liberty in reaping the
fruits thereof.
2. Article II, Section 10
The State shall promote social justice in all phase of national development.
Underlying premise: poverty and gross inequality are major problems besetting the nation and that these
problems assault the dignity of the human person.
Social justice- is the equalization of economic, political and social opportunities with special emphasis on the duty
of the state to tilt the balance of social forces by favoring the disadvantaged in life.
- Justice for the common tao (1935 Constitution)
- Those who have less in life should have more in law
This provision led to gradual eradication of the vestiges of laissez faire
GENERAL PROVISIONS AND POLICIES
3. Article II, Section 18 in relation to Article 3 and 4 of Labor Code
The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their
welfare.
Art.3. Declaration of basic policy.- The State shall afford protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race, or creed and regulate the relations between workers and employers. xxx
Art. 4. Construction in favor of labor.- All doubts in the implementation and interpretation of the provisions of this
Code, including its IRR, shall be resolved in favor of labor.
4. Article XII Section 12: nationalistic policy re labor
The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and
adopt measures that help make them competitive.
5. Article XII Section 14: Nationalistic policy re field endeavor
The sustained development of a reservoir of national talents consisting of Filipino scientists, entrepreneurs,
professionals, managers, high-level technical manpower and skilled workers and craftsmen in all fields shall be
promoted by the State. The State shall encourage appropriate technology and regulate its transfer for the national
benefit.
The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by law.
6. Article XIV Section 4(2): re educational institutions
Educational institutions, other than those established by religious groups and mission boards, shall be owned solely by
citizens of the Philippines or corporations or associations at least sixty per centum of the capital of which is owned by
such citizens. The Congress may, however, require increased Filipino equity participation in all educational institutions.
The control and administration of educational institutions shall be vested in citizens of the Philippines.
No educational institution shall be established exclusively for aliens and no group of aliens shall comprise more than
one-third of the enrollment in any school. The provisions of this subsection shall not apply to schools established for
foreign diplomatic personnel and their dependents and, unless otherwise provided by law, for other foreign
temporary residents.
7. Article XVI Section 11(1): mass media
The ownership and management of mass media shall be limited to citizens of the Philippines, or to cooperation,
cooperatives or associations, wholly owned and managed by such citizens.
The Congress shall regulate or prohibit monopolies in commercial mass media when the public interest so requires. No
combinations in restraint of trade or unfair competition therein shall be allowed.

8. Article XVI Section 11(2): in advertising industry

The advertising industry is impressed with public interest, and shall be regulated by law for the protection of
consumers and the promotion of the general welfare.
The participation of foreign investors in the governing body of entities in such industry shall be limited to their
proportionate share in the capital thereof, and all the executive and managing officers of such entities must be
citizens of the Philippines.
Only Filipino citizens/corporations/associations at least 70% of the capital of which is owned are allowed to
engaged in advertising.
LABOR RELATIONS
9. Article XIII Section 3: Protection of labor clause
The State shall afford full protection to labor, local and overseas, organized and unorganized, and promotes full
employment and equality of employment opportunities for all.
It shall guarantee the rights of workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities including the right to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the preferential
use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith
to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share
in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and
growth.
10. Article XIII Section 14: protection of women
The State shall protect working women by providing safe and healthful working conditions, taking into account their
maternal functions, and such facilities and opportunities that will enhance their welfare and enable them to realize
their full potential in the service of the nation.
11. Article III, Section 1: Due Process and Equal Protection
No person shall be deprived of life, liberty and property, nor shall any person be denied the equal protection of the
laws.
Bill of Rights: civil and political rights; self-implementing
Art. XII: social and economic rights; non-self-executory, requires implementing legislation

Property- includes vested rights such as a perfected mining claim, perfected homestead or final judgement;
includes right to work and right to earn a living
Profession, trade, employment, calling is a property right and the wrongful interference therewith is an
actionable wring. Thus, Order of Preventive Suspension without opportunity to be heard-violates property right.

Security of tenure- no worker shall be dismissed except for just or authorized causes provided by law and after
due process. By the use of the term worker, it presupposes that all workers are entitled to security of tenure, no
matter what their status, position or term of employment. Be they probationary, casual, contractual, term
employee, piece rate, task basis, household help, etc
Two considerations: manner of dismissal (adherence to due process clause) and act of dismissal (just and
authorized cause)
12. Article III, Section 4: Freedom of Expression
No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people
peaceably to assemble and petition the government for redress of grievances.
Kapatiran ng Manggagawa ng Camara v Camara Shoes (111 SCRA 478)- The right of freedom of expression
is applicable not only in times of labor dispute but during industrial peace to air valid grievances.
13. Article III, Section 8: Freedom of Association
The right of the people, including those employed in the public and private sectors to form unions, associations, or
societies for purposes not contrary to law shall not be abridged.
Right to join unions includes privilege not to join. Exception- when there is a Union Security Clause in the CBA,
provided that the USC shall be of prospective effect should a labor union opt to choose such USC in their CBA
and that the sanctions involved therein must be explicitly stated, and cannot be mere implied.
14. Article III, Section 10 in relation to Article 1700 and 1702 of the New Civil
Code: Non-impairment clause
No law impairing the obligations of contracts shall be passed.
Sanctity of employment contracts except in the exercise of police power. Contracts may be impaired as long as
such power is lawfully exercised.
Although the rights and duties arising from labor relationships are basically contractual in nature, these are not
covered by the general law on oblicon.
Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed with public
interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special law
on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor,
and similar subjects.
Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and
decent living for the laborer.
15. Article III, Section 11: Free access to courts
Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person
by reason of poverty.
Quasi-judicial bodies- like those having jurisdiction over labor cases: LA, NLRC, DOLE
16. Article III, Section 16: Right to speedy disposition of cases
All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or
administrative bodies.
No filing fee or legal fee when filing grievances with the NLRC.
Zero backlog of dockets at NLRC.
17. Article III, Section 18 (2): Right against involuntary servitude
No involuntary servitude in any form shall exist except as punishment for a crime whereof the party shall have been
duly convicted.
ii. POLICE POWER OF THE STATE
1. CONCEPT
2. RULE MAKING POWER OF THE DOLE SECRETARY (ART. 5 LC)
c. STATE’S POWER TO REGULATE
II. ELEMENTS OF LABOR LAWS
a. LABOR POLICIES
b. LABOR STANDARDS
c. LABOR RELATIONS LAW
d. SOCIAL LAW
III. COVERAGE AND APPLICABILITY OF THE LABOR CODE
a. RULE
i. IT APPLIES TO AGRICULTURAL AND NON-AGRICULTURAL WORKERS
b. EXCEPTIONS:
i. REGULAR GOVERNMENT AGENCIES
ii. GOCCS
iii. INTERNATIONAL ORGANIZATIONS
iv. SPECIALIZED AGENCIES
 IV. EMPLOYER-EMPLOYEE RELATIONSHIP
a. TEST OF ER-EE
i. Four-fold test:
1. Power of selection and engagement
2. Power of dismissal
3. Economic conditions or payment of wages
4. Power of control over employee’s conduct
a. Control over the means and manner of work done and over the results
of the work
b. Status of:
A. doctor hired as consultant or on part time retainer: Ramos v CA:
In other words, private hospitals, hire, fire and exercise real control
over their attending and visiting consultant staff. While consultants
are not, technically employees, a point which respondent hospital
asserts in denying all responsibility for the patients condition, the
control exercised, the hiring, and the right to terminate consultants
all fulfill the important hallmarks of an employer-employee
relationship, with the exception of the payment of wages. In
assessing whether such a relationship in fact exists, the control test is
determining. Accordingly, on the basis of the foregoing, we rule
that for the purpose of allocating responsibility in medical
negligence cases, an employer-employee relationship in effect exists
between hospitals and their attending and visiting physicians.
B. barbers,
C. jeepney drivers under boundary system,
D. drivers not considered field personnel,
E. insurance agents
b. CASES WHEN ER-EE EXISTS
c. METHOD OF COMPENSATION NOT DETERMINATIVE OF ER-EE
V. BASIC RIGHTS OF WORKERS
VI. RECENT JURISPRUDENCE

SSS ACT

Employer
-is any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business,
industry, undertaking or activity of any kind and uses the services of another person who is under his orders as
regards the employment
-a self-employed person shall be both employee and employer at the same time

Employee
- Any person who performs services for an employer in which either or both mental and physical efforts
are used and who receives compensation for such services, where there is an employer-employee
relationship
- Only natural persons (do not include juridical persons)
- A CORPORATION CANNOT BE AN EMPLOYEE
- A COOPERATIVE MEMBER CANNOT BE AN EMPLOYEE OF THE COOPERATIVE

GSIS

Employer
-the national government, its political subdivisions, branches, agencies or instrumentalities, including GOCCs and
financial institutions with original charters, the constitutional commissions and the judiciary

Employee
-Any person receiving compensation while in the service of an employer as defined herein, whether by election
of appointment, irrespective of status of appointment, including barangay and Sanggunian officials

POEA
Employer
-as any person, partnership or corporation, whether local or foreign, directly engaging the services of Filipino
workers overseas

Employee
-Migrant Workers or Overseas Filipino Workers, "a person to be engaged, is engaged, or has been engaged in
a remunerated activity in a state of which he or she is not a legal resident

TESDA (Technical Education and Skills Development Act of 1994) and its Implementing Rules

Employer
-the individual firm or any other entity qualified to hire apprentices under the Code. Thus, it cannot be an
individual, but must be an entity or a firm. And even granting that it is such a juridical person, it must be qualified
under the provisions of RA 7796
- (entity means juridical persons)

Employee
-trainees shall mean persons who are participants in a vocational, administrative or technical training program
for the purpose of acquiring and developing job-related skills
-apprentice is a person undergoing training for an approved apprenticeable occupation during an
apprenticeship agreement
-learners refers to persons hired as trainees in semi-skilled and other industrial occupations which are non-
apprenticeable. Leadership programs must be approved by the Authority.

Art. 107. Labor Code, INDIRECT EMPLOYER

Employer
-any person, partnership or association or corporation which, not being an employer, contracts with an
independent contractor for the performance of any work, job, task or project

Employee
- Contractual, project, fixed-term, seasonal, casual, on-call, task-based, piece rate workers, etc (Quiz
No. 1)

Art. 155. Labor Code. Employer of Homeworkers

Employer
- Any person, natural or artificial, who for his account or benefit, or on behalf of any person residing
outside the country, directly or indirectly or through any employee, agent, contractor, sub-contractor or
any person
- Delivers or causes to be delivered any goods, articles or materials to be processed or fabricated in or
about a home and thereafter to be returned or to be disposed of or distributed in accordance with his
directions, or
- Sells any goods, articles or materials to be processed or fabricated in or about a home and then re-buys
them after such processing or fabrication, either himself or through some other person

Employee
 - Art. 153. Employment of Homeworkers (DO No. 5 Feb. 4, 1991)
- Any person who performs industrial work for an employer, contractor or sub-contractor
- Industrial homework is a system of production under which work for an employer or contractor is carried
out by s homeworker at his home. Materials may or may not be furnished by the employer or contractor.
- These type of workers are governed by the provisions of DO No. 5 dated Feb. 1991
RA NO 10361 KASAMBAHAY LAW
Employer
- Refers to any person who engages and controls the services of a domestic worker and is party to the
employment contract
- Household refers to the immediate members of the family or the occupants of the house that are directly
provided services by the domestic worker
Employee
- Any person engaged in domestic work within an employment relationship such as, but not limited to the
following:
o General househelp
o Nursemaid or yaya
o Cook
o Gardener
o Laundry person
o But shall exclude any person who performs domestic work only occasionally or sporadically and
not on an occupational basis
- The term shall not include children who are under foster family arrangement, and are provided access to
education and given an allowance incidental to education i.e. baon, transportation, school projects and
school activities
CLASSIFICATION OF EMPLOYEES (3S+ 3H +4P + 2F= 3CLAM3) OR (F(2)L C(3)H(3)AM(3)p(4)S(3)
Seasonal Employees
- For seasonal employees to be excluded from those classified as regular employees, it is not enough that
they perform work that is seasonal in nature. They must have been employed only for the duration of one
season. If seasonal workers perform the same tasks for the employer every season for several years,
accumulating at least 12 months, they will be considered regular seasonal employees for their respective
tasks. Seasonal workers who are called to work from time to time and are temporarily laid off during
off-season are not separated from service, but merely considered on leave until re-employed.
- If the employee has been performing the job for at least a year, even if the performance is not
continuous and merely intermittent, the law deems repeated and continuing need for its performance as
sufficient evidence of the necessity if not indispensability of that activity to the business. Hence, the
employment is considered regular, but only with respect to such activity and while such activity exists.
- These workers as above-described are sometimes referred to a permanent or regular seasonal workers
- Examples: packers of tobacco hired by tobacco farms
Supervisory Employees
-Art. 212 (m). those, in the interest of the employer, effectively recommend such managerial actions if the
exercise of such authority is not merely routinary or clerical in nature but requires the use of independent
judgement
-IRR- Book 5, Sec 1 (1)
- not actually managerial since they do not lay down company policies; the exercise is not supreme but merely
advisory in character. Theirs is not a final determination of the company policies inasmuch as any action taken by
them on matters relative to hiring, promotion, transfer, suspension, and termination of employees is still subject to
confirmation and approval by their respective superior
-thus where such power, which is in effect recommendatory in character, is subject to evaluation, review and final
action by the department heads and other higher executives of the company,…
SPECIAL GROUP OF WORKERS
1. Handicapped Workers
- RA 7277 THE MAGNA CARTA FOR DISABLED PERSONS
- RA 9442
- SEC. 5 INCENTIVES FOR EMPLOYERS (incentive for handicapped workers)
Women Workers
- Article (di mabasa)- nightworkers (workers in night clubs, cocktail lounges, beer house, massage clinic, bar
or similar establishments) with or without compensation, under the effective control and supervision of the
owner are employees
- RA 8972 Solo Parents Welfare Act of 2000 (parental leave and flexible work schedule)
- Department Order No 112A (special leave benefit for women)
- Discrimination Against Women: unlawful to deny any women employee the benefits provided for in the
law to discharge any woman employed by him for the purpose of preventing her from enjoying any of
the benefits provided under the Labor Code and other laws; to discharge such woman on account of her
pregnancy, or while on leave or in confinement due to her pregnancy; to discharge or refuse the
admission of such woman upon returning to her work for fear that she may again be pregnant;
- RA 10151: An Act Allowing the Employment of Night Workers- Article 158
- Art. 161 Night Work Schedule
Bus-Drivers and Conductors
-DO no. 118-12 s 2012
Security Guards
TV and Movie Industry
Debt Collectors
Construction
Business Processing Outsourcing
Knowledge Outsource Processing

Lecture 7/9/2018
WHO CAN FORM LABOR ORGANIZATIONS?
Supervisory employees
- Cannot join unions of rank-and-file employees, but may form, assist or join labor organizations of their
own. Those who were members of existing labor organizations upon the effectivity of RA 6715 (as of
March 1989) were explicitly authorized to remain under its Implementing Rules (Arizala v CA 189 SCRA
584; COASTAL SUBIC TERMINAL INC., vs DEPARTMENT OF LABOR and EMPLOYMENT- OFFICE OF THE
SECRETARY, COASTAL SUBIC BAY TERMINAL, INC. SUERVISORY UNION-APSOTEU, and COASTAL SUBIC
BAY TERMINAL, INC. RANK-AND-FILE UNION-ALU-TUCP, GR NO. 157117, November 20, 2006; See
however Sec 8 RA 9481 s of 2007)
Rank-and-file employees
- Whether employed for a definite period or not, beginning on their first day of service (art. 217 LC)
Aliens
-working in this country with valid employment permits, if they are nationals of a country which grants the same
or similar rights to Filipino Workers (Art. 269, LC). The law allows them to join or assist (but not from) labor
organizations of their own choosing for purposes of collective bargaining
Government employees
- In the civil service (Art. III, Sec. 8, Phil Const.; Art. 245, LC as amended by EO No. 111; Sec. 2, EO 180)
GOVERNMENT EMPLOYEES’RIGHT TO ORGANIZE AND ITS LIMITATIONS
Considering the fact that government employees can now organize their own labor organizations, the
following discourse of the Honorable Supreme Court on the matter would be most informative, if not, the
yardstick to be followed on the matter.
NOTE: Limitations: See Arizala et al v CA et al GR No. L-43633-34 September 14, 1990) High level employees
whose functions are considered policy-making, managerial or highly confidential in nature, are not eligible to join
organizations of rank-and-file government employees. This right does not apply to members of the AFP, including
police officers, policemen, firemen and jail guards (Sec 3 and 4, EO No. 180)
Employees of government corporations established under the Corporation Code(Art. 245, LC as amended by EO
No. 222)
Security Personnel
-who are employees in relation to the establishment of their employer (company guards). Ex. O. No. 111
eliminated the provision of Art. 245 of the Code regarding ineligibility of security personnel. And the prohibition
embodied under the IRR was held to be germane to the objectives and purposes of RA 6715 and EO No 111
(Meralco v Sec of Labor, 197 SCRA 275). Thus, they may join either supervisory or rank-and-file unions
according to their rank
WHO CANNOT FORM LABOR UNIONS? (SP CAME)
Subversives or Members of Subversive Organizations
- No labor organizations shall knowingly admit as members or continue in membership any individual who
belongs to subversive organization or who is engaged directly or indirectly in any subversive activity (Art.
241e LC)
Protection Services
- these include members of the Philippine Armed Forces, the Philippine National Police, security agency
guards as to the union of their principals
Cooperative’s employees who are at the same time members
- this is because members of the cooperative are deemed owners of such cooperatives, and owners cannot
bargain with themselves nor with their co-owners (San Jose City Electric Cooperative v Minister of Labor,
173 SCRA 697; BENECO v Ferrer-Calleja, 180 SCRA 740). But this exclusion does not apply to
employees of cooperatives who are not members or co-owners thereof (Cooperative Rural Bank of
Davao City v Ferrer-Calleja, 165 SCRA 725). While employees who are at the same time members of a
cooperative cannot join labor unions for purposes of collective bargaining, they are not however
prohibited from withdrawing their membership in the cooperative in order to join a labor union. Public
 policy provides that the right to self-organization be accorded the highest consideration (Central Negros
Electric Cooperative, Inc. v Secretary of the Department of Labor and Employment, et. al. GR No 94045
18 September 1991)
Aliens
- those without any diplomatic ties with the Philippines, or of countries who do not adhere to the principal
of reciprocity as to these rights of laborers
Managerial employees
- those vested with powers or prerogatives to lay down and execute management policies and/or hire,
transfer, suspend, lay-off, recall, discharge, assign, or discipline employees. They are distinguished from
the supervisory employees who, in the interest of the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely routinary or clerical in nature, but requires the use of
independent judgement (Art. 212-m LC)
- accordingly, Art. 212 m of the LC as amended, differentiates supervisory employees from managerial
employees, to wit: supervisory employees are those who, in the interest of the employer, effectively
recommend such managerial actions, if the exercise of such authority is not merely routinary or clerical in
nature but requires the use of independent judgement, whereas, managerial employees are those who
are vested with powers or prerogatives to lay down and execute management policies and/or hire,
transfer, suspend, lay-off, recall, discharge, assign or discipline employees (Cathay Pacific Steel Corp. v
CA)
Employees who may be excluded by a CBA
-classifies union and non-union members, such as those who have access to confidential information of the
employer (Accountants- accounting personnel, radio/telegraph operators (Golden Farms v Ferrer-Calleja 175
SCRA 471) Secretaries- (Philips Industrial Devt v NLRC 210 SCRA 339) Analogous to these are the present
highly skilled computer technicians, programmer and program developers, encoders, etc who have access and
come to deal with the highest confidential data of their employer)
LABOR STANDARDS
LABOR LAW
Defined as that body of statutes, rules and doctrines that defines State policies on labor and employment, and
governs the rights and duties of workers and employers respecting terms and conditions of employment by
prescribing certain standards therefor, or by establishing a legal framework within which better terms and
conditions of work could be obtained through collective bargaining or other concerted activity
This definition is now in accordance with the provisions of the new Philippine Constitution and the Labor Code as
amended
LABOR POLICIES
These are principles or guidelines that define State policies regarding labor and employment. Although these
policies do not govern the relations, per se, between workers and employees, they represent a new dimension
that is an integral part of labor law
Labor policies may be classified into
a. Constitutional Policies- Art. XIII Sec 3
b. Statutory Policies- Books I and II LC
LABOR STANDARDS LAW
 - Minimum requirements prescribed by existing laws, rules and regulations and other issuances relating to
wages, hours of work, cost of living allowances and other monetary and welfare benefits (Section 7, Rule
1, Rules on the Disposition of Labor Standards Cases in the Regional Offices, Sept 16, 1987)
- In is that body of statutes, rules and doctrines that governs the rights and duties of workers and
employers respecting terms and conditions of employment by prescribing certain standards therefor.
These are embodied in Book III Labor Code and in the decrees on COLA and 13th month pay.
- These are those which pertain to conditions of employment such as working conditions, rest periods and
minimum wages, to health, safety and social welfare benefits such a medical, dental and occupational
safety, employee’s compensation and medicare and to the employee’s right to security of tenure.
Basic Definitions
1. Normal hours of work: 8 hours a day (Article 83 LC)
Broken hours- the normal 8 hours do not always mean continuous and uninterrupted; it may mean broken
hours as in 4 hours in the morning and 4 hours in the evening, provided the total of 8 hours is accomplished within
one work day
Staggered working time- in Christmas seasons is a valid scheme meant to improve the delivery of goods
and services (Memo Circular No 81)
Work in different shifts- three 8 hour shifts in a “work day”
Flexible Work Schedule- is a right granted to a solo parent employee to vary his/her arrival and
departure time without affecting the core work hours as defined by the employer (Sec. 3(3) and 6 RA 8972)
Work day- 24 consecutive hour from the time the employee starts to work
Work week- 168 consecutive hours or 7 consecutive 24 hr work days, beginning at the same hour and on
the same calendar day each calendar week
Travel-as part of the employee’s principal activity is counted as hours worked
Travel away from home- is working time when it cuts across the employee’s workday
Attendance in hearings of cases- filed by employees against the employers is not compensable working
time
2. Compressed Work Week (CWW)- from 6 days to 5 days under certain conditions imposed by DOLE (less
than 6 days but 48 hrs per week) (Department Order No. 02, Series of 2004- implementing CWW
schemes)
Requisites: AN NoTe Mo
- Agreement
- No diminution of pay and fringe benefits
- No strenuous physical exertion and with adequate rest periods
- Temporary
- More benefits or equal to 1-hour OT
- Purpose: PEG
- Promote business competitiveness and productivity
- Ensure safety and health of employees
- Give flexibility in fixing hours of work for a balanced work life
3. Meal break- mandatory 60 minutes (Article 85, LC)
- Meal breaks can be shortened to not less than 20 minutes with compensation in: NENA
o Non-manual work
o Establishment operates not less than 16 hours a day
 o Necessary to prevent serious loss of perishable goods
o Actual or impending emergencies
- Rest periods of short duration during working hours are considered and counted as compensable working
time (Article 84 LC)
- Rest periods or coffee breaks from 5-20 minutes are compensable working time (Section 7 Rule 1 Book
III, Rules to Implement the LC)
4. Waiting time
- Waiting time spent by an employee shall be considered as working time if waiting is an integral part of
his work or the employee is required or engaged by the employer to wait (Section 5a, Rule I Book III,
Rules to Implement the LC)
- Engaged to wait- compensable and must be paid
- Waiting to be engaged- non-compensable, no pay
- An employee who is required to remain on call in the employer’s premises or so close thereto that he
cannot use the time effectively and gainfully for his own purpose, shall be considered as working while on
call (Sec 5b, Rule I, Book III, Rule to Implement the LC)
5. Wages (Art. 98, Rule VII, Sec 3)
- Remuneration or earnings capable of being expressed in terms of motion, whether fixed or ascertained
on a time, task, piece or commission basis, or other method of calculating the same, which is payable by
an employer to an employee under a written or unwritten contract of employment for work done or to be
done or for services rendered or to be rendered and includes rendered or to be rendered and includes
the fair and reasonable value as determined by the Secretary of Labor and Employment, of board,
lodging, or other facilities customarily furnished by the employer to the employee (Art. 97 LC)
- Attributes of wage: FURE
o Fair and reasonable value
o Under a written or unwritten contract
o Remuneration or earnings
o Expressed in terms of money
Statutory minimum wage- lowest basic wage rate fixed by law, that an employer can pay his workers
Regional minimum wage- lowest basic wage rate that an employer can pay his workers, as fixed by the
RTWPB and which shall not be lower than the applicable statutory minimum wage rates. The minimum wage rates
for agricultural and non-agricultural employees and workers in each and every region of the country shall be
those prescribed by the RTWPB (Art. 99 LC)
- Localities, industries, and provinces
What are the criteria or standards for minimum wage fixing? (Art. 124 LC DEFINE Wa Pre Co Ne)
- Demand for living wages
- Effects on employment generation and family income
- Fair return of the capital invested and employer’s capacity to pay
- Improvements in standards of living
- Needs of workers and their families
- Equitable distribution of income and wealth
- Wage adjustment
- Prevailing wage levels
- Cost of living and changes or increases
- Need to induce industries to invest in the countryside
How are wage rates established by DOLE?
Wage rates established by DOLE through: TIC
 - Time and motion studies
- Individual/ collective bargaining agreement
- Consultation with employee representatives or organizations
6. Commissions (Art. 97)
-recompense, compensation or reward of an employee, agent, salesman, executor, trustee, receiver, factor,
broker, or bailee, when the same is calculated as percentage or the amount of his transactions or on the profit of
the principal given for extra efforts exerted in consummating sales or other related transactions. They are
additional pays which do not form part of the basic salary/wage, therefore, they should not be included in
computing the 13th month pay
07-10-2018
STANDARDS BENEFITS (13 GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely
A. 13TH MONTH PAY (13 GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
-Is 1/12th of the basic salary earned by an employee within a calendar year.
-to be paid only to rank-and-file employees, provided that they have worked for at least one month during a
calendar year
Note: earnings and other remunerations which are not part of the basic salary, such as payments for vacation
and sick leave, overtime pay, and premium for work on rest days, are not included in the computation of the 13th
month pay. The COLA is not also included
The rule on 13th month pay
-requires an employer to pay its employees receiving a basic salary of more than P1,000 regardless of the
nature of their employment, a 13th month pay not later than Dec. 24, every year, provided that they have
worked at least one month during the calendar year (PD 851)
-however, an employer may give to his employees ½ thereof before the opening of the regular school year and
the remaining half on or before Dec 24 of every year. The frequency of payment of this monetary benefit may
be the subject of an agreement between the employer and the recognized collective bargaining agent of the
employees.
B. GRATUITY (13 GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- A gift, in cash or in kind, freely given by the employer in appreciation of certain favors or services
rendered, which may not even be essential or necessary to the business.
- Not part of wages since strictly speaking, it is not intended as compensation for actual work
- Not demandable as a matter of right
- Given by employer through his liberality, his appreciation, solely on his discretion, and not necessarily to
all employees at all times
C. HOLIDAY PAY (13 GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
The purpose of Holiday Pay
-it is meant to prevent diminution of the income of workers on account of work interruptions
10 regular holidays (EO 203 June 30 1987)
1. January 1: new year’s day
2. Maundy Thursday: varies
3. Good Friday: varies
 4. Araw ng Kagitingan (Bataan Day and Corregidor Day): Monday nearest April 9
5. Labor Day: Monday nearest May 1
6. Independence Day: Monday nearest June 12
7. National Heroes Day: Last Sunday of August
8. Bonifacio Day: Monday nearest November 30
9. Christmas Day: December 25
10. Rizal Day: Monday nearest December 30
There are 2 national special days: November 1: All Saints Day and December 31: last day of the year
Under PD 1083 (Code of Muslim Personal Laws of the Philippines) effective Feb 4, 1977, the following are
recognized as legal Muslim Holidays:
AmunJadid (New Year)- 1st day of the first lunar month of Muharram
Maulid-un Nabi (Birthday of the Prophet Muhammad)- 12th day of the 3rd lunar month of Rabi-ul-Awwal
LailatulIsraWalMi’raj (Nocturnal Journey and Ascension of the Prophet Muhammad)- 27th day of the 7th lunar
monthly of Rajab
These are observed in the provinces of Basilan, Lanao del Norte and Sur, Maguindanao, North Cotabato,
Sultan Kudarat, Sulu, cities of Cotabato, Iligan, Marawi, Pagadian and Zamboanga. These are also
observed in some Muslim provinces and cities may be created by law. These can be observed in some other
cities and provinces if and when so proclaimed by the President.
Id-ulFtr(Hari Raya Pausa)- 1st day of the 10th lunar month of Shawwal, commemorating the end of the fasting
season;
Id-ulAdha (Hari Raya Haji)- 10th day of the 12th lunar month of Dhu’l-Hijja
Article 9. Right to holiday pay.- Sec 3. Holiday pay.-
(a) Every worker shall be paid his regular daily Every employer shall pay his employee their
wage during regular holidays, except in regular daily wage for any unworked regular
retain and service establishments regularly holiday.
employing less than 10 workers; As used in the Rule, the term holiday shall
(b) The employer may require an employee to exclusively refer to: New Year’s Day, Maundy
work on any holiday but such employee shall Thursday, Good Friday, 9th of April, 1st of May,
be paid a compensation equivalent to 2x his 12th of June, 4th of July, 30th of November, 25th and
regular rate 30th of December and the day designated by law
for a general election or national referendum or
plebiscite

Who are not entitled to holiday pay? Ms/MRs10; GFK

a. Managerial employees-who serve under the ff criteria:
a. Primary duty is to manage the establishment in which they are employed or a department or
subdivision thereof
b. Customarily and regularly direct the work of 2 or more employees; and
c. Have power to hire and fire other employees of lower rank; their suggestions and/or
recommendations as to the general management of the establishment is given great weight
Similarly situated are Members of the Managerial Staff whose duties and responsibilities include:
1. Primarily performing work that are directly related to the management policies
2. Exercise discretion and independent judgement, directly assists the owner or managers
in running the business or any part thereof; or executes work along specialized or
 technical lines requiring special training, experience or knowledge, or special
assignments regularly;
3. They do not spend more than 20% of their work hours in a week on activities that are
not directly and closely related to the above-listed tasks
b.Those retail and service establishments regularly employing not more than 10 workers
c.Those of the government and any of its political subdivisions, including government-owned and/or controlled
corporations
d. Field personnel and other employees whose time and performance are unsupervised by the employer,
including those who are engaged on task or contact basis, purely commission basis, or those who are paid a
fixed amount for performance thereof, irrespective of the time consumed in the performance of such work
e. Kasambahay and persons in the personal service of another

Where there are 2 successive regular holidays, like Holy Thursday and Good Friday ,an employee may not be
paid for both holidays if he absents himself from work on the day immediately preceding the first holiday, unless
he works on the first holiday in which case he is entitled to his holiday pay on the second holiday (Sec 10 Rule IV
Book HI Implementing Rules and Regulations)
Thus, where the employee is absent without permission on Wednesday, the day immediately preceding the first
holiday, Maundy Thursday, he is not thereof entitled to the holiday pay for either Maundy Thursday or Good
Friday. However, where the employee was absent with pay on Wednesday or did not report for work because
it was his rest day, he would be entitled to holiday pay. Employees who are on leave of absence with pay are
entitled to holiday pay. And where the day immediately preceding the holiday is scheduled rest day of the
employee, he shall be deemed to be on leave of absence on that day, in which case, he shall be entitled to the
holiday pay if he worked on the day immediately preceding the rest day ( Sec. 6 Rule IV Book HI Implementing
Rules and Regulations)
What are the 2 classes of special public holidays?
-Nationwide special public holiday and the local special public holiday. Under LOI 814, local special public
holidays are non-working days except when otherwise declared by the President.
What are the distinctions between regular holidays and special days?
a. A covered employee who does not work during regular holidays is paid 100% of his regular daily
wage; while a covered employee who does not work during a special day does not receive any
compensation under the principle of “no work no pay”
b. A covered employee who works during regular holidays is paid 200% of his regular daily wage; while a
covered employee who works during special days is only paid an additional compensation of not less
than 30% of the basic pay or a total of 130% and at least 50% over and above the basic pay or a
total of 150% if the worker is permitted or suffered to work on special days which fall on his scheduled
rest day
What are the effects of absence on entitlement to regular holiday pay?
a. Employees on leave of absence with pay- entitled to regular holiday pay
b. Employees on leave of absence without pay on the day immediately preceding a regular holiday-may
not be paid the required holiday pay if he has not worked on such regular holiday
c. Employees on leave while on SSS or employee’s compensation benefits-employers shall grant the same
percentage of the holiday pay as the benefit granted by competent authority in the form of employee’s
 compensation or social security payment, whichever is higher, if they are not reporting for work while on
such benefits.
d. When the day preceding regular holiday is a non-working day or scheduled rest day- employee shall
not be deemed to be on leave of absence on that day, in which case, he shall be entitled to the regular
holiday pay if he worked on the day immediately preceding the non-working day or rest day
What is the rule in case of absence during successive regular holidays?
An employee may not be paid for both holidays if he absents himself from work on the day immediately
preceding the first holiday, unless he works on the first holiday, in which case, he is entitled to his holiday pay
on the second holiday
What is the rule in case two regular holidays fall on the same day?
DOLE Explanatory Bulletin on Worker’s Entitlement to Holiday Pay (April 9, 1993):
if Araw ng Kagitingan and Good Friday fall on the same day
- if employee did not work- 200% of basic pay
- If employee worked- 300% of basic pay
What is the rule in case of regular Muslim holidays?
The SC ruled that there should be no distinction between Muslim and non-Muslims as regards payment of
benefits for Muslim holidays
D. OVERTIME PAY (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
-an additional compensation for work done beyond the normal work hours on ordinary working days. Premium
pay, on the other hand, is additional compensation for work rendered by the employee on days normally he
should not be working, such as special holidays and weekly rest days
Art. 87. Overtime work Sec.8 Overtime Pay
Work may be performed beyond 8 hours a day provided that Any employee covered by this rule who is
the employee is paid for the overtime work, an additional permitted or required to work beyond 8 hrs
compensation equivalent to his regular wage plus at least 25% on ordinary working days shall be paid an
thereof. additional compensation for the overtime
Work performed beyond 8 hrs a day on a holiday or rest day work in an amount equivalent to his regular
shall be paid an additional compensation equivalent to the rate wage plus at least 25% thereof.
of the first 8 hrs on a holiday or rest day plus at least 30%
hereof

Rationale/Reasons for OT Pay

1. Compensate the worker for his physical and mental efforts for hours worked beyond the normal 8 hrs
2. Penalty imposed by society on the employer. The worker is granted an additional pay in concept of
penalty for having been deprived of time for relaxation, amusement or sports and for opportunity to
contribute to the community or other business engagement.
3. A governmental measure to promote full employment, because it forces employers to hire more workers
for every 8hr period.
What is overtime work?
It means work rendered after normal 8 hrs of work.
In computing overtime work, regular wage or basic salary means cash wage only without deductions for facilities
provided by the employer
What is premium pay?
It means the additional compensation required by law for work performed within 8 hours on non-working days
such as rest day and special days.
What is overtime pay?
It means additional compensation for work performed beyond 8 hrs. very employee entitled to premium pay is
also entitled to the benefits of overtime pay.
What is the difference between premium pay and overtime pay?
Premium pay refers to the additional compensation required by law for work performed within 8 hours on non-
working days such as rest day and special days. Overtime pay refers to additional compensation for work
performed beyond 8 hrs. Every employee entitled to premium pay is also entitled to the benefits of overtime
pay.
Overtime work must be duly proved. (Lagatic Doctrine)
Overtime pay is not subject to waiver.
Who are not entitled to overtime pay? (Pa, NoGo, MaMaPaDo)
1. Workers who are paid by results, such as those paid on piece rate, takay, pakyaw or task basis, as well
as other non-time work, if their output relates are in accordance with the standards prescribed in the
regulations (TIME AND MOTION STUDY, or where such rates have been fixed by the DOLE
2. Non-agricultural field personnel
3. Govt employees, national level of any of its political subdivisions including GOCCs
4. Managerial employees who serve under the ff criteria:
a. Primary duty is to manage the establishment in which they are employed or a department or
subdivision thereof
b. Customarily and regularly direct the work of 2 or more employees; and
c. Have power to hire and fire other employees of lower rank; their suggestions and/or
recommendations as to the general management of the establishment is given great weight
May undertime be offset by overtime?
No. undertime on any particular day shall not be offset by overtime on any other day (Art. 88 LC). To allow
otherwise would prejudice the employee as he would be deprived of the additional pay for the overtime work
he has rendered.
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 required by law such as overtime pay or night shift differential pay.
When may an employee be compelled to perform overtime work?
GR: No employee may be compelled to render OW against his will
E: (USWIPE)
1. Urgent work to be performed on machines, installations or equipment, or in order to avoid serious loss or
damage to the employer or some other cause of similar nature
2. Completion or continuation of work started before the 8thhr is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer
3. The country is at war or when any other national or local emergency has been declared by the National
Assembly or the Chief Executive
 4. Necessary to prevent loss of life or property or in case of imminent danger to public safety due to actual
or impending emergency in the locality caused by serious accident, fire, floods, typhoons, earthquake,
epidemic or other disasters or calamities
5. Necessary to prevent loss or damage to perishable goods
6. Necessary to avail of favorable weather or environmental conditions where performance or quality work
is dependent thereon
E. SERVICE INCENTIVE LEAVE (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
What are the basic principles governing the grant of SIL?
1. Every covered employee who has rendered at least 1 year of service shall be entitled to a yearly
service incentive leave of 5 days with pay.
“One 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 days in the establishment as a matter of practice or policy, or that provided in the employment contract,
is less than 12 months, in which case, said period shall be considered as one year for the purpose of determining
entitlement to SIL
2. SIL is commutable to cash if unused at the end of the year
3. The basis of computation of SIL is the salary rate at the date of commutation
4. Grant of vacation leave or sick leave may be considered substitute for SIL (Note: there is no provision in
the LC granting vacation/sick leave)
What is the rationale for leave credit accumulation and cash conversion?
Aimed primarily to encourage workers to work continuously and with dedication for the company. Companies
offer incentives, such as the coversion of the accumulated leave credits into their cash equivalent, to lure
employees to stay with the company. Leave credits are normally covereted into their cash equivalent based on
the last prevailing salary received by the employee.
What is the curious animal doctrine?
In the 2005 case of Autobus v Bautista (GR No. 156367), the SC observed that the service incentive leave is a
curious animal in relation to other benefits granted by the law to every employee. In the case of SIL, the
employee may choose to either use his leave credits or commute it to its monetary equivalent if not exhausted at
the end of the year. Furthermore, if the employee entitled to SIL doesn’t use or commute the same, he is entitled
upon his resignation or separation to commutation of his accrued SIL.
F. TERMINATION PAY/ SEPARATION PAY/ EXIT PAY (13GHOST WARNS: Be Forever Vigilant, Silently
(Meditate, Pray) Sincerely)
- given to employee when there is a termination of the ee-er relationship under certain conditions:
- a. an employee shall be entitled to termination pay equivalent to at least 1 month’s salary for every
year of service, a fraction of at least 6 months being considered as one whole year. In case of
termination of employment due to the installation of labor-saving devices or redundancy
- b. where the termination of employment is due to retrenchment to prevent losses and in case of closure or
cessation of operations of establishment or undertaking not due to serious business losses or financial
reverses, or where the employee suffers from a disease and his continued employment is prohibited by
law or is prejudicial to his health or to the health of his co-employees, the employee shall be entitled to
termination pay equivalent to at least one-month’s pay for every year of service, a fraction of at least
six months being considered as one whole year
- c. termination pay provided in the Sec shall in no case be less than the ee’s one month pay
 - Note: illegally dismissed employees are, by law, entitled to this benefit, at one month pay for every year
of service; Legally dismissed
- Versus separation pay- amount that an employee receives at the time of his severance and is designed to
provide the employee with the wherewithal during the period he is
- Entitled to: one half month pay for every year of service
- Basis of termination pay: latest salary rate (versus last salary received), unless the same was reduced
by the employer to defeat the intention of the Code, in which case the basis of computation shall be the
rate before its deduction
Separation Pay
- Defined as the amount that an employee receives at the time of his severance and is designed to provide
the employee with the wherewithal during the period he is looking for another employment.
- (San Miguel Corp v Lao) award of separation pay is authorized in situations dealt with in Article 283 and
Art 284 of the LC but not in terminations of employment based on instances enumerated in Art. 282
- (Eastern Paper Mills Inc v NLRC) separation pay shall be paid, although the employee was lawfully
dismissed, are when the cause of termination was not attributable to the employee’s fault but due to:
1. Installation of labor saving devices
2. Redundancy
3. The employee is suffering from a disease and his continued employment is prohibited by law
or is prejudicial to his health and to the health of his co-employees
- Other than these cases, an employee who is dismissed for a just and lawful cause is not entitled to
separation apy even If the award were to be called by another name
- Separation pay is likewise awarded in lieu of reinstatement of reinstatement is no longer feasible as
when the relationship is between the employer and employee has become strained. Still, in some cases,
separation pay or financial assistance may be extended as a measure of social justice
- Employee is entitled to:
- A. ½ month pay for every year of service when the separation is due to:
o Retrenchment to prevent loss
o Closure or cessation of business not due to serious losses or financial strain
o When the employee is suffering from a disease not curable within a period of 6 months despite
medical treatment, where such continued employment is prejudicial to his health or the health of
his co-workers
- B. 1 month pay for every year of service when the separation is due to:
o Installation of labor saving devices
o Redundancy
o Impossible reinstatement for reasons not attributable to or due to the fault of the employer, e.g.
closure or cessation of operations, the position formerly occupied no longer exists; there is no
substantially equivalent position to reinstate him to
- Separation pay shall be allowed as a measure of social justice only in those instances where the
employee is validly dismissed for causes other than serious misconduct or those reflecting on his moral
character
- Where the reason for the valid dismissal is for example habitual intoxication or an offense involving
moral turpitude, like theft or illicit sexual relations with a fellow worker, the employer may not be
required to give the dismissed employee separation pay, or financial assistance or whatever other name
it is called on the ground of social justice
What is the basis of termination pay?
The computation of the termination pay of an employee shall be based on his latest salary rate unless the
same was reduced by the employer to defeat the intention of the Code, in which case the basis of
computation shall be the rate before its deduction
May separation pay be considered part of wages?
Yes. It is additional remuneration for services rendered; as a matter of fact, it is measured by the amount (i.e.
length) of service rendered
SERVICE CHARGE
Article 96 LC Sec. 3 Distribution of Service Charges
(Based on certain percentage of the amount paid by customer) All service charges collected by covered
Service charges.- all service charges collected by hotels, employers shall be distributed at the
restaurants and similar establishments shall be distributed at rate of 85% for employees and 15%
the rate of 85% for all covered employees and 15% for for management. The 85% shall be
management. The share of the employees shall be equally distributed equally among the covered
distributed among them. In case the service charge is abolished, employees. The 15% shall be for
the share of the covered employees shall be considered disposition by management to answer
integrated in their wages for losses and breakages and
GR: 15% of which for management (to pay for loss/damage distribution to managerial employees at
incurred by employee); 85% of which for employee the discretion of the management in the
Tip- for all not only for one employee latter case
Sec. 4 Frequency of distribution Sec. 2 Employees covered
The shares referred to herein shall be distributed and paid to This rule shall apply to all employees of
the employees not less than once every 2 weeks or 2x a month covered employers regardless of their
at intervals not exceeding 16 days positions, designations or employment
status and irrespective of the method by
which their wages are paid; except to
managerial employees.
As used herein a managerial employee
shall mean one who is vested with
powers or prerogatives to lay down and
execute management policies and/or to
hire, transfer, suspend, lay-off, recall,
discharge, assign, or discipline
employees or to effectively recommend
such managerial actions. All employees
not falling within this definition shall be
considered rank and file employees.
Sec. 5 Permanency of service charges
In case the service charge is abolished, the share of covered
employees shall be considered integrated in their wages. The
basis of the amount to be integrated shall be the average
monthly share of each employee for the past 12 months
immediately preceding the abolition or withdrawals of such
charges
(Cannot collaterally stop collection of SC
If employer does so, must compensate ee’s)
Sec. 6 Relation to agreements
Nothing in this rule shall prevent the employer and his
employees from entering into any agreement with terms more
favorable to the employees than those provided herein, or be
used to diminish any benefit granted to the employees under
existing laws, agreements and voluntary employer practice
Note: in analogous manner, where the establishment does not collect service charges but maintains a policy of
monitoring and pooling tips voluntarily given by the customers to the employees, these should be accounted
and distributed in the same manner as service charges.
 Service charge is not profit share and may thus not be deducted from wage.
G. WAGES (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- Means the remuneration or earnings, however designated, capable of being expressed in terms of
money, whether fixed or ascertained on a time, task piece, on commission basis, or other method of
calculating the same, which is payable by all employer to an employee under a written or unwritten
contract of employment for work done or to be done, or for service rendered or to be rendered and
includes the fair and reasonable value, as determined by the Secretary of Labor, of board, lodging, or
other facilities customarily furnished by the employer to the employee
- “fair and reasonable value”shall not include a profit to the employer or to any person affiliated with the
employer
Art. 98. Application of Title.- this title shall not Rule VII. Sec. 3 Coverage.- this rule shall not apply
apply to farm tenancy or lease hold, to the following persons:
domestic service a. Household or domestic helpers including
and persons working in their respective homes in family drivers and persons in the personal
needle work or in any cottage industry duly service of another
registered in accordance with law b. Homeworkers engaged in needlework
c. Workers employed in any establishment
duly registered with the NCIDA in
accordance with RA 3470 provided that such
workers perform the work in their respective
homes
d. Workers in a duly registered cooperative
when so recommended by the Bureau of
Development and upon the approval of the
Secretary of Labor; provided however that
such recommendation shall be given only for
the purpose of making the cooperative
viable upon finding and certification of said
Bureau, supported by adequate proof that
the coop cannot resort to other remedial
measures without serious loss or prejudice to
its operation except through its exemption
from the requirements of this Rule, the
exemption shall be subject to such terms and
conditions and for such period time as the
Secretary of Labor may prescribe
Art. 99. Regional minimum wages.- the minimum
wage rates for agricultural and non-agricultural
employees and workers in each and every region
of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards
Forms of payment
Art. 102. No employer shall pay the wages of an Rule VIII Sec 1. Manner of wage payment-as a
employee by means of promissory notes, vouchers, general rule, wages shall be paid in legal tender
coupons, tokens, tickets, chits or any object other and the use of tokens, promissory notes, vouchers,
than legal tender, even when expressly requested coupons, or any other form alleged to represent
by the employee. legal tender is absolutely prohibited even when
Payment by check or money order shall be allowed expressly requested by the employee
when such manner of payment is customary or is Sec. 2. Payment by check. xxx allowed where such
necessary because of special circumstances as manner of wage payment is customary xxx where it
specified in CBA is stipulated in a CBA or where all of the following
conditions are met:
 1. There is a bank, or other facility for
encashment within a radius of one km from
the workplace
2. Employer or any of his agents or
representatives does not receive any
pecuniary benefit directly or indirectly from
the arrangement
3. Employees are given reasonable time during
banking hours to withdraw their wages from
the bank which time shall be considered as
compensable hours worked if done during
working hours
4. Payment is with the written consent of the
employees concerned if there is no CBA

To whom does Wage Orders apply?

It applies to all private sector workers and employees receiving the daily minimum wage rates or those
receiving up to a certain daily wage ceiling, where applicable, regardless of position, designation, status of
employment and irrespective of method by which wages are paid.
Who are exempted?
Those who are:
1. Workers of duly registered BMBEs with Certificate of Authority issued by the Office of the Mun/City
Treasurer
2. Those companies/establishments who were granted exemption by the RTWPB upon application and
submission of required documents, but for a period not exceeding 1 yr therefrom
3. Persons employed in the personal service of another
4. Household/kasambahays
Who are monthly paid employees?
They are those who are paid everyday of the month, including unworked rest days, special days, and
regular holidays. Factor 365 days in a year is used in determining equivalent annual and monthly salary of
these workers.
Who are daily paid employees?
They are those who are paid on the days they actually worked and on unworked regular holidays
What are the minimum wage rates under the Batas Kasambahay?
It should not be less than P2.5k/month in NCR, P2k a month in chartered cities and municipalities and P1.5k a
month in other municipalities. These rates however shall be reviewed by the local RTWPB.
What are the rights and benefits granted by the Batas Kasambahay?
These are: minimum wage, other mandatory benefits (daily and weekly rest periods), service incentive leave
pay, 13th month pay, freedom from employer’s interference in the disposal of wages, SSS, PhilHealth, Pag-
IBIG coverage, standard treatment, board, lodging and medical attendance, right to privacy, access to
outside communication, access to education and training, right to form, join or assist a labor organization,
right to be provided a copy of the employment contract, right to certificate of employment, right to terminate
the employment and right to exercise their own religious beliefs and cultural practices
 What are the attributes of wage?
1. It is the remuneration or earnings, however designated for work done or to be done or for services
rendered or to be rendered
2. It is capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece,
or commission basis, or other method of calculating the same
3. It 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
4. It includes fair and reasonable value as determined by the Sec of DOLE of board, lodging, or other
facilities customarily furnished by the employer to the employee. Fair and reasonable value shall not
include any profit to the employer, or to any person affiliated with the employer
5. Wage, salary, and pay are synonymous in meaning and usage
6. Commission may or may not be treated as part of wage depending on the circumstances
7. Actual work is the basis of claim for wages (No work no pay)
What are the labor code provisions on non-diminution of benefits?
1. Article 100- non-elimination and non-diminution of employee benefits enjoyed at the time of the
promulgation of the LC
2. Art. 127- non-diminution of benefits related to the passage of the RTWPB of wage rates lower than the
statutory minimum rates prescribed by the Congress
What is the proper legal bases of the non-elimination and non-diminution principle?
(Arco Metal Products inc v SAMARM-NAFLU): ECCA
a. Express terms of an employment agreement
b. Company practice (implied terms)
c. Constitution (Sec. 18 Art. II and Sec. 3, Art. XIII)
d. Article 4 of LC
As a rule, the employer cannot in his own behalf or in behalf of any person, make any deductions from the
wages of his employees. What are the exceptions?
They are:
a. Deduction of SSS, PhilHealth, Pag-IBIG premiums
b. Taxes withheld from wages pursuant to the Tax Code
c. Deduction for reimbursement of insurance premiums advanced by the employer where the worker is
insured with his consent by the former
d. Deductions for union dues where the right to check-off has been recognized by the employer or
authorized in writing by the individual employee himself
e. Deductions made with the written authorization of the employee for payment to a 3rg person and the
employer agrees t odo so, provided that the latter does not receive any pecuniary benefit from the
transaction
Note: Art. 1706 of New Civil Code allows the withholding of wages for a debt due. The consent of the
employee is not necessary; the employer and the employee are debtors and creditors of each other.
Compensation takes place.
What is meant by the phrase “a fair day’s wage for a fair day’s labor”?
It means unless specifically required by law, contract or established policy or practice, the employer is not
bound to pay wages to a worker who has not actually rendered any service.
What is part-time work?
It is work with the duration of less than 8 hours and with a no work no pay basis. The compensation in
proportion to the time they actually rendered work must be given. Agreement should be entered between the
employer and employee regarding part-time work.
How to determine a contract as a contract for piece work?
(Art. 1713-1731 NCC) Employ: Labor, skill, furnish of the materials (LSF). Price or compensation is paid at the
time and place of delivery unless with a stipulation to the contrary. The contractor is liable for all claims of
laborers and others employed by him and of third persons for death or physical injuries during the
construction.
What is the Barangay Microbusiness Enterprises? (RA 9178, DTI Admin Order No. 01-03)
(RA 9178) Sec. 3 It is any business entity or enterprise engaged in the production, processing or
manufacturing of products or commodities, including agro-processing, trading and services, whose total
assets including those arising from loans but exclusive of the land on which the particular business entity’s
office, plant and equipment are situated does not exceed Php 3M.
Who are eligible to register?
Sec. 5 any person, natural or juridical, cooperative, or association
Are BMBEs exempted from the coverage of the Minimum Wage Law?
Yes, provided that all employees covered shall be entitled to the same benefits given to any regular
employee such as SSS and PhilHealth benefits
What is the purpose of RA 9178?
Sec 1. Declaration of policy.- in order to hasten the country’s economic development by encouraging the
formation and growth of barangay micro business enterprises which effectively serve as seedbeds of Filipino
entrepreneurial talents, and integrating those in the informal sector with the mainstream economy, through the
rationalization of bureaucratic restrictions, the active intervention of the government specially in the local
level, and the granting of incentive and benefits to generate much-needed employment and alleviate
poverty.
Thus, the spirit of this law therefore is to integrate into the mainstream economy those that are at the rural or
the barangay level that are micro in capitalization.
What does services mean in “engaged in the production, processing or manufacturing of products or
commodities, including agro-processing, trading and services”?
It refers to activities that are of the same kind or of the same nature as that of production, processing or
manufacturing of products or commodities. Thus security agency or manpower agency is not by any logical
and legal reasoning, directly related to such business. If this interpretation is to be upheld, then every
business by any person or juridical entity engaged in bar or videokeetc, as long as its capitalization is
Php3M or less, can be registered. Thus, they can pay their workers less than the minimum wage mandated by
law. This is not the purpose of this law. If it is, then it is blatantly contrary to the Philippine Constitution, the
Labor laws, morals and public policy.
Services likewise excludes those rendered by anyone who is duly licensed by the government after having
passed a government licensure examination, in connection with the exercise of one’s profession, such as
lawyers, doctors, security agencies and security guards.
Ratio legis, or spirit of the law must prevail. Also, the principle of ejusdem generis (when a statute describes
things of a particular class or kind, the generic works will usually be limited to things of a kindred nature with
those particularly enumerated) applies.
What is the preference of credit in case of bankruptcy of employer?
Art. 110 the workers shall enjoy first preference as regards their wages and other monetary claims, any
provisions of the law to the contrary not withstanding.
Sec. 7 IRR the unpaid wages and other monetary claims shall be paid in full before the claims of government
and other creditors
What is wage distortion?
It is a situation where an increase in prescribed wage rates results in the elimination or severe contraction if
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
Note: for a wage distortion to arise, it is not necessary that there be an elimination or total abrogation of
quantitative wage or salary difference. A severe contraction therein is enough, based on skills, length of service
or other logical basis
What are its four elements? (ESEE)
- An Existing hierarchy of positions with corresponding salary rates
- A Significant change in the salary rate of lower class without increase in the salary of the higher class
- The Elimination of the distinction
- The Existence of the distortion in the same region of the country
How is it corrected?
Art. 124 LC. If organized establishment, the employer and the union shall negotiate. Disputes will be resolved
through the grievance procedure under their CBA then the Voluntary Arbitrator if unresolved.
If unorganized establishment, the employer and workers shall endeavor to correct distortion. Disputes resolved
by the National Conciliation and Mediation Board (NCMB) then the Labor Arbiter if unresolved.
What is the formula for resolving wage distortion?
Minimum wage = % x prescribed increase= distortion adjustment
Actual salary
ALLOWANCES
- Not part of wages
- Moneys given to certain qualified employees for their extraneous expenses in the performance of their
functions. Other entities require the liquidation thereof in aa regular period of time. Other entities don’t.
In such case, these may be designated as extra remuneration, but subsumed under allowance so as not to
increase the tax base of the employees concerned. This can be interpreted also as an incentive for the
employee to be more productive or more diligent in doing his job, or prolonging his service with the
company. Therefore, in the computation of the amount of retirement and other benefits, allowances shall
not be included therein.
H. REST DAY PAY (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)

Art. 91:Right to weekly rest day Rule III Sec 3. (same)

a. It shall be the duty of every employer whether Sec. 4 preference of employee. The preference of the
for profit or not to provide each of his employee as to his weekly day of rest shall be
employees a rest period of not less than 24 respected by the employer if the same is based on
 consecutive hrs after 6 consecutive normal religious grounds. The employee shall make known his
work days preference to the employer in writing at least 7 days
b. The employer shall determine and schedule before the desired effectivity of the initial rest day so
the weekly rest day subject to the CBA. preferred. Where, however, the choice of the
However, the employer shall respect the employee as to their rest day based on religious
preference of employee grounds will inevitably result to the prejudice or
obstruction to the operations of the undertaking and
the employer cannot normally be expected to resort
to other remedial measures, the employer may so
schedule the weekly rest day of their choice for at
least 2 days in a month.
Note: where work period is less than 6 consecutive normal work days, there is no need to schedule a rest day.
When may an employer compel his employee to render work on a rest day? (U SNIPE)
1. In case of urgent work to be performed on machineries/equipment/installation to avoid serious loss which
the employer would otherwise suffer
2. In the event abnormal pressure of work due to the special circumstances, where the employer cannot
ordinarily be expected to resort to other measures
3. Where the nature of the work is such that the employees have to work continuously for 7 days in a week
as in the case of the crew members of a vessel
4. 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 and property, or in case of force majeure or
imminent danger to public safety
5. Prevent serious loss of perishable goods
6. When the work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work is dependent thereon
What is the Blue Sunday Law? RA 946
The law states that no commercial, industrial or agricultural enterprise or establishment including stores and shops
of any kind shall be open on any Sunday, Christmas Day, New Year’s Day, Holy Thursday, and Good Friday
from 12:00mn to 12:00mn without providing the employees the weekly rest day and resultant benefits provided
in Art. 302 LC
I. NIGHT SHIFT DIFFERENTIAL (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
Art. 86. Sec. 2. (same)
NSD. Every Sec. 3. Additional compensation. Where an employee is required or suffered to work on the
employee period covered after his work schedule, he shall be entitled to his regular wage plus at least
shall be 25% and an additional amount of not less than 10% of such overtime rate for each hour of
paid a night work performed between 10PM to 6AM
shift Sec 4. Add’l compensation on scheduled rest day/special holiday. xxx not falling on regular
differential holidays, shall be paid a compensation equivalent to his regular wage plus at least 30% and
of not less an additional amount of not less than 10% of such premium pay rate for each hour of work
than 10% performed
of his Sec. 5. Add’l compensation on regular holidays. For work on the period covered during regular
regular holidays, an employee shall be entitled to his regular wage during these days plus an
wage for additional compensation of no less than 10% of such premium rate for each hour of work
each hour of performed.
work Sec. 6 Relation to agreements. Nothing in this Rule shall justify an employer in withdrawing or
performed reducing any benefits, supplements or payments as provided in existing individual or collective
between agreements or employer practice or policy
10PM and
6AM
Who is a night worker?
Any employed person whose work requires performance of a substantial number of hours of night work which
exceeds a specified limit.
What is the justification for NSD payment?
1. Lack of sunlight could cause anemia or TB, eye strain and exposure to accidents is common
2. Attendant danger when traveling to and from work at night
3. Disruption of normal home life
Who are not entitled to the payment of night shift differential? (MsMRs5GFK) (same as those who are not
entitled to holiday pay, except on the no. of workers (5 for NDS, 10 for HP)
a. Managerial employees-who serve under the ff criteria:
a. Primary duty is to manage the establishment in which they are employed or a department or
subdivision thereof
b. Customarily and regularly direct the work of 2 or more employees; and
c. Have power to hire and fire other employees of lower rank; their suggestions and/or
recommendations as to the general management of the establishment is given great weight
Similarly situated are Members of the Managerial Staff whose duties and responsibilities include:
1. Primarily performing work that are directly related to the management policies
2. Exercise discretion and independent judgement, directly assists the owner or managers
in running the business or any part thereof; or executes work along specialized or
technical lines requiring special training, experience or knowledge, or special
assignments regularly;
3. They do not spend more than 20% of their work hours in a week on activities that are
not directly and closely related to the above-listed tasks
b.Those retail and service establishments regularly employing not more than 5 workers
c.Those of the government and any of its political subdivisions, including government-owned and/or controlled
corporations
d. Field personnel and other employees whose time and performance are unsupervised by the employer,
including those who are engaged on task or contact basis, purely commission basis, or those who are paid a
fixed amount for performance thereof, irrespective of the time consumed in the performance of such work
e. Kasambahay and persons in the personal service of another
J. SUPPLEMENTS (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- These are extra remuneration or special privileges or benefits given to or received by the worker over
and above his ordinary earnings or wages
- Note: a company providing for free transportation to its employees as a supplement cannot discontinue
the same because once given, a supplement can no longer be eliminated or diminished. When supplement
is a part of the laborer’s basic wage, it is a facility. The criterion is purpose: facilities may be charged or
deducted from wages.
K. BONUS (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
 - May be given as gratuity, as an act of liberality. It is part of wages if it is additional compensation which
the employer promised and agreed to give with condition imposed for its payment, such as success of
business or greater production or output
When is bonus demandable?
A bonus is demandable as a matter of right if it is made part of a wage/salary/ compensation; if the promise
of the bonus is made at the time the contract between the employer an employee was entered into; if it is
additional compensation which the employer promised and agreed to give without any condition; or by its
having been given for such a long time such that receipt of a bonus has ripened into a right
L. FACILITIES (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- Includes articles or services for the benefit of the employee or his family but shall not include tools or
trade or articles or services primarily for the benefit of the employer or necessary to the conduct of the
employer’s business
- These are items of expense necessary for the laborer’s and his family’s existence and subsistence which
form part of the wage and when furnished by the employer, are deductible therefrom, since if they are
not so furnished. The laborer would spend and pay for them just the same
M. VOLUNTARY GRANTS (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- Rule: whatever the employer has voluntarily granted to his employees as benefits, but which is not
required by law, and enjoyed by the latter for a considerable period of time, it cannot be later on
unilaterally withdrawn
- But payment of benefits through an erroneous application of law due to absence of clear administrative
guidelines is not considered as voluntary grant. Payment is not deliberate
- Note: a company which included in the computation of the 3th month pay of its employees the payment
for the latter’s sick, vacation and maternity leaves, premium for work on rest days and special holidays
can no longer discontinue the inclusion thereof since the former had freely, voluntarily and continuously
made the same. The considerable length of time the questioned items had been included by the company
indicates a unilateral and voluntary act on its part, sufficient in itself to negate any claim of mistake. The
principle of solution in debiti is not applicable in labor law.
N. PATERNITY LEAVE (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- RA 8187 entitled “An act granting paternity leave of 7 days with full pay to all married male
employees in the private and public sector for the first four deliveries of the legitimate spouse with whom
he is cohabiting and for other purposes
- Refers to the leave benefits granted to a married male employee allowing him not to report for work for
7 days but continues to earn the compensation therefor, on the condition that his spouse has delivered a
child or suffered a miscarriage for the purpose of lending support to his wife during her period of
recovery and/or in nursing the new born child
- Employee refers to any person who performs service for another and receives compensation thereof,
provided an employer-employee relationship exists between them
- Delivery- refers to childbirth or miscarriage
- Spouse-refers to lawful wife (legally married)
- Cohabiting- live together
What are the conditions before one is entitled to paternity leave benefits?
Sec. 3. A married male shall be entitled to paternity benefits provided that:
1. He is an employee at the time of delivery of his child
2. He is cohabiting with his spouse at the time she gives birth or suffers a miscarriage
 3. He has applied for paternity leave in accordance with Sec 4
4. His wife has given birth/suffered a miscarriage
Sec. 4. Application for leave. The married male ee shall apply for paternity leave with his er within a
reasonable pd of time from the expected date of delivery or within such pd as may be provided by company
rules and regulations or by CBA; provided that prior application for leave shall not be required in case of
miscarriage
O. MATERNITY LEAVE BENEFITS (13GHOST WARNS: Be Forever Vigilant, Silently (Meditate, Pray) Sincerely)
- Cash allowance granted to female member (SSS) who was unable to work due to child birth or
miscarriage
- All female members including self-employed and voluntary members with qualifying contributions using
the new contributions schedule shall be entitled to maternity benefit
- Every pregnant woman employee in the private sector whether married or unmarried is entitled to
maternity benefit
What are the conditions required?
1. Maternity benefits shall be paid for the 1st four deliveries including miscarriages
2. 5th delivery no longer paid even if no availment were made on the previous deliveries
3. Member has given required notification to SSS prior to date of contingency
4. Has paid at least 3 months of maternity contributions within the 12 month period immediately before the
semester of contingency
How many days would comprise the maternity leave of a covered SSS member?
Normal delivery or miscarriage- 60 days; caesarian – 78 days
In computing the 13th month pay of a female employee, does the law provide for the inclusion of the
maternity leave benefit in computing the same?
No. maternity benefits, like other benefits granted by the SSS, are granted to employees in lieu of wage, and
therefore, may not be included in computing the employee’s 13th month pay for the CY
For employees of the public sector, the provisions of the Civil Service Law and Rules shall apply.
To avail of this benefit, the mother should file notification to SSS or Civil Service Commission as the case may be
through her employer. The employer must have paid at least 3 monthly contributions within the 12 month pd
immediately before the date of childbirth
P. PARENTAL LEAVE FOR SOLO PARENTS; RA 8972 (13GHOST WARNS: Be Forever Vigilant, Silently
(Meditate, Pray) Sincerely)
- Granted to any solo parent or individual who is left alone with the responsibility of parenthood due to
the ff:
o Giving birth as a result of rape or crimes against chastity
o Death of spouse
o Detained spouse or is serving sentence for a criminal conviction for at least 1 yr
o Physical/mental incapacity of spouse as certified by a public medical practitioner
o Legal separation or de facto separation for at least one year and entrusted with custody of kids
o Nullity or annulment of marriage; entrusted with custody of kids
o Abandonment of spouse for at least 1 yr
o Unmarried father/mother who has preferred to keep child instead of having others care for them
o Any person who solely provides parental care and support to a child provided that he is duly
licensed as a foster parent by DSWD or is a legal guardian
 o Any family member who assumes responsibility as head of family as a result of death,
abandonment or disappearance of parents for at least one year
Q. SPECIAL LEAVE FOR WOMEN, RA 9710 (Magna Carta for Women) (13GHOST WARNS: Be Forever
Vigilant, Silently (Meditate, Pray) Sincerely)
- Special leave benefit to any female employee regardless of age and civil status for 2 months with full
pay based on her gross monthly compensation
- The gross monthly pay shall be in addition to her mandatory allowances
- Non-cumulative and non-convertible to cash unless an agreement or CBA provides otherwise
- Shall be granted to the qualified employee after she has undergone surgery without prejudice to the
employer allowing an employee to receive her pay before or during the surgery
What are the conditions?
1. Rendered at least 6 mos of continuous aggregate employment for the last 12 mos prior to surgery
2. Filed an application
3. Has undergone surgery due to gynecological disorders as certified by a competent physician
What are gynecological disorders?
Those that would require surgical procedures such as but not limited to dilation and curettage and those
involving female reproductive organs. Also includes hysterectomy, ovariectomy, mastectomy
RA 9262 (VAWC)
- Cover the days that the woman employee has to attend to medical and legal concerns, up to 10 days
with full pay and mandatory allowances.
- May be extended as the need arises, as specified in the protection order issued by the barangay or the
court
- At the option of employee
- Non-cumulative/non-convertible to cash
- Requirement: present to her employer a certification from the barangay chairman or barangay councilor
or prosecutor or Clerk of Court that the action relative to the matter is pending
RETIREMENT (RA 7641 ammending Art. 287 of LC)
- Applies to all employees in the private sector, regardless of their position, designation, status and
irrespective of the method by which their wages are paid
- exempted:
o Government employees (Civil Service Law)
o Employees of retail, service and agricultural establishment regularly employing not more than 10
ees
o Persons under the personal service of another
- For those who are paid by results, the basis for computing their half-month salary shall be their average
daily salary for the last 12 months, counted from the date of their retirement, divided by the number of
actual working days in that particular period
- Note: Kasambahays are now entitled to this benefit under the Kasambahay Law
What is the amount of retirement pay?
The minimum retirement pay shall be equivalent to ½ month salary for every year of service, a fraction of at
least 6 months being considered as 1 year.
The minimum pay shall include:
- 15 days salary based on the latest salary rate
 - Cash equivalent of 5 days SILP
- 1/12 of the 13th month pay (1/12x365/12=.083x30.41=2.5
- Other benefits as may be agreed upon by ee and er for inclusion
- ½ month salary is therefore equivalent to 22.5 days
But it shall not include:
- COLA
- Profit sharing payment
- Other monetary benefits which are not considered as part of or integrated into the regular salary of the
ees (Rogelio Reyes v NLRC 2007)
What is the basis of computing RP of workers paid by results?
The basis for the determination of the salary for 15 days shall be their average daily salary. This is derived by
dividing the total salary or earnings for the last 12 months reckoned from the date of retirement by the number
of actual working days in that particular period, provided that the determination of rates of payment by results
are in accordance with the established regulations.
What of part-time workers?
Also entitled to retirement pay of one-month salary for every year of service after satisfying these conditions for
optional retirement:
a. There is no retirement plan between the ee and er
b. Ee should have reached the age of 60 and should have rendered at least 5 years of service with er
Pursuant to this principle, the components of retirement benefit of part-time workers may likewise be computed
at least in proportion to the salary and related benefits due them
What of underground mining employee? (RA 8558 (1998) amending further Art. 287)
The retirement age of underground mining employee was reduced from 60 to 50 years of age as compulsory
retirement age, and they must have served at least 5 yrs as miner
EMPLOYEE’S COMPENSATION PROGRAM (PD 626)
- Designed to provide a compensation package to public and private sector employees or their
dependents in the event of work-related sickness, injury, disability or death
- Available to all workers of the formal sector, beginning from the first day of employment
- It has also been held that employee who were not registered with SSS may still claim as long as it had
been declared that his injury etc is work connected.
EEC SSS GSIS
Medical benefits Sickness benefit Temporary total disability
Rehabilitation services Permanent total disability Permanent total disability
Temporary total disability Permanent partial disability Permanent partial disability
Permanent total disability Death benefit Survivorship benefit
Permanent partial disability Funeral benefit Funeral benefit
Death benefit Retirement benefits Retirement benefit
Funeral benefit Maternity leave benefit Separation benefit
Unemployment or involuntary
separation
Insurance
Compulsory
Optional
Loss of Income Benefit
- Pertains to the cash benefit given to compensate for lost income dure to employee’s inability to work
- Temporary total disability (when the ee is unable to work for a continuous period not exceeding 120
days) or permanent partial disability (when a worker loses a body part and the loss of the use of that
body part) or permanent total disability (worker’s disability lasts for more than 240 days)
Medical benefits
- Cover the cost of medicine for the illness or injury, payments to providers of medical care etc and the cost
of appliances and supplies necessary. Limited to ward services of accredited hospitals
Rehabilitation services
- Includes physical therapy, vocational training and special assistance provided for employees who sustain
a disability as a result of sickness or injury arising out of employment. The objective is to develop the
worker’s mental, vocation, and social potential and to help them remain as productive member of society
Carer’s allowance
- Provided to an employee who suffers from a work-connected permanent partial and permanent total
disability
Death benefits
-granted to beneficiaries of an employee in the event of work connected death, including instances where the
cause is complication or natural consequence of his compensated permanent total disability
Note: these EC benefits shall be in addition to existing medical services being provided by the employer
PAG-IBIG BENEFITS (RA 9679)
- The Home Development Mutual Fund or the Pagtutulungansakinabukasan: Ikaw, Bangko, Industriya at
Gobyerno Fund
- A mutual provident savings system for private and government employees and other earning groups,
supported by matching mandatory contributions of their respective employers with housing as the primary
investment
When is Pag-IBIG benefits mandatory?
Mandatory for:
- All employees, workers, professionals, officers and companies who are compulsorily covered by the
SSS/GSIS
- Uniformed members of the AFP,BFP,BJMP,PNP
- OFWs
- Filipinos employed by foreign based employers, whether deployed locally or abroad
What are the benefits under this law?
1. Savings or provident savings program
2. Short term loans
a. multi-purpose loan program
b. calamity loan program
3. housing program
PHIL-HEALTH BENEFITS (RA 7875 AS AMENDED BY RA 9241)
-The National Health Insurance Program, formerly known as Medicare is a health insurance program for SSS
members and their dependents whereby the healthy subsidize the sick who may find themselves in need of
financial assistance when they get hospitalized
Who may avail of this program?
1. Employed members- govt or private sector
2. Individually paying members-self-employed, OFWs, professionals
3. Non-paying members- lifetime coverage if they are:
a. Retirees and pensioners of GSIS/SSS
b. Members who reached compulsory retirement age and have paid it at least 120 months
contribution
Note: optional retirees are not yet entitled to lifetime coverage until they reach the age of retirement which
may be 60 years and above
What are the benefits?
1. Inpatient health care
a. Room and boar
b. Services of doctors
c. Diagnostic, laboratory etc
d. Use of surgical or medical equipment and facilities
e. Prescription drugs
f. Inpatient education packages
2. Outpatient care
a. Diagnostic, laboratory etc services
b. Personal preventive services
c. Prescription drugs
d. Services of healthcare professionals
e. Emergency and transfer services
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F-I-N-A-L-S C-O-V-E-R-A-G-E

Lecture: Oct 13, 2018

(Kwentonglupa)
Lecture: Oct 21, 2018
AGRARIAN LAW AND SOCIAL WELFARE LEGISLATION: A Comprehensive Review
A Historical and Political Review of the Agrarian Problem
Pre-Spanish land situation
Land patterns:
Tribal hunters and gatherers
Shifting cultivators
Those with sedentary culture
Muslims
Social classes
Before the Hispanic Period, there were no owner-cultivators, only communal land owned by the barangay which
consisted of a Datu, Freemen, Serfs and Slaves. It was during these times that traders from other lands- Chinese,
Portuguese, Spanish-came to know of this group of islands. They traded trinkets for food, clothes, and sea
vessels, and most of all, the abundant raw and shining gold. The latter is really what caught the attention, and
sparkled the greed of the Spaniards, who financed a whole convoy of the galleons to sail to these islands. Of
course, they say that it was the search for spice, and to them to spread Catholicism to these people. Those whom
they failed to influence or convince or who resisted, were labeled as barbarians. Thus, the Igorots who fought
long and hard against them were so called, and it was preached throughout the lands they had conquered. That
is why most landowners call Igorots barbarians.
Agrarian Reform in Philippines Setting
The Philippine Agrarian Problem:
Two important dimensions:
1. Land and the people; agricultural and social
2. Productivity and human rights
The Agrarian Problem
- Basically, a question of land distribution and utilization
- The right to own property, universal but limited
- Land is necessary for all human beings and everybody has the right to use land for his survival
- The right to use is given to all individuals but the matter to be used is limited and the number of users
unlimited
Spanish Period Land Situation: Land tenancy under Spain:
a. Encomienda system
b. Rise of the cacique class (chief, politics, local boss)- a title, chiefs or leaders of tribes
c. Early rebellions
d. Conflicts over land tenureship
e. Friar lands
f. Philippine revolution
The Spanish settlement in the Phil revolved around the encomienda system of plantations, known as haciendas,
just like what they did to Mexico and other Spanish colonies in the Americas. As the 19th century progressed,
industrialization and liberalization of trade allowed these encomiendas to expand their cash crops, establishing
a strong sugar industry in the Philippines on such islands and Panay and Negros.
Land Tenure Situation Under the American Regime
a. Actual increase in tenancy rate
b. Purchase of friar lands
c. Homesteading
d. Peasant rebellions and opposition
e. Rice Share Tenancy Act (Act No. 4050)
f. Sugar Share Tenancy Act (Act No. 4113)
The USA took possession of the Philippines following the Spanish American War in 1898 and after putting down
the subsequent rebellion in the Philippine American War. The 2nd Philippine Commission-Taft Commission, viewed
economic development as one of its top 3 goals. In 1901 93% of the island’s land area was held by the
government and William Howard Taft, Governor-General, argued for a liberal policy so that a good portion
could be sold off to American investors.
Commonwealth Period
a. Commonwealth act no. 103- created the Court of Industrial Relations (which later became the NLRC)
b. Commonwealth act no. 213- regulated legitimate labor organizations
c. Commonwealth acts 178, 461, and 608- gave more protection to tenants. Orderly settlement of virgin
agricultural lands begun by the National Land Settlement Administration
During the American Colonial Period, tenant farmers complained about the sharecropping system, as well as by
the dramatic increase in population which added economic pressure to the tenant farmer’s families. As a result,
an agrarian reform program was initiated by the Commonwealth. However, success of the program was
hampered by ongoing clashes between tenants and landowners.
Rice Share Tenancy Act of 1933
When the Philippine Commonwealth was established, president MLQ implemented the RSTA of 1933. The
purpose of this act was to regulate the share-tenancy contracts by establishing minimum standards. Primarily, the
Act provided for better tenant-landlord relationship, 50-50 sharing of the crop, regulation of interest to 10%
per agricultural year, and a safeguard against arbitrary dismissal by the landlord. The major flaw of this law
was that it could be used only when the majority of municipal councils in a province petitioner for it. Since
landowners usually controlled such councils, no province ever asked that the law be applied. Therefore, Quezon
ordered that the act be mandatory in all Central Luzon provinces. However, contracts were good only for one
year. By simply refusing to renew their contract, landlords were able to eject tenants. As a result, peasant
organizations agitated in vain for a law that would make the contract automatically renewable for as long as
the tenants fulfilled their obligations.
In 1936, this Act was amended to get rid of its loophole, but the landlords made its application relative and not
absolute. Consequently, it was never carried out in spite of its good intentions. In fact, by 1939, thousands of
peasants in Central Luzon were being threatened with wholesale eviction. By the early 1940s, thousands of
tenants in Central Luzon were ejected from their farmlands and the rural conflict was more acute than ever.
Therefore, during the Commonwealth period, agrarian problems persisted. This motivated the government to
incorporate a cardinal principle on social justice in the 1935 Constitution. Dictated by the social justice program
of the government, expropriation of landed estates and other landholdings commenced. Likewise, the National
Land Settlement Administration began an orderly settlement of public agricultural lands. At the outbreak of the
Second World War, major settlement areas containing more than 65,000 hectares were already established.
Effects of Japanese Occupation
- The Japs (1941-45) had tremendous impact on the agrarian issue. From the ranks of the peasant and
labor organizations and from the merger of the CPP and Socialist Party rose the HUKBALAHAP (Hukbo
ng Mapagpapalayasa Bayan)
Post-War attempt at Agrarian Reform
a. Agricultural tenancy act of 1954 (RA 1199)
b. Land reform act of 1955 (RA 1400)
c. Land resettlement as a solution
d. The agricultural land reform code of 1963 (RA 3844)
e. Amendments to the Agricultural Land Reform Code (RA 6389)
 f. Agrarian Reform Special Fund Act (RA 6369)
Independence
When the Philippines gained its independence in 1946, much of the land was held by a small group of wealthy
landowners. There was much pressure on the democratically elected government to redistribute the land. At the
same time, many of the democratically elected holders were landowners themselves or came from land-owning
families.
In 1946, shortly after his induction to Presidency, Manuel Roxas proclaimed the RST Act of 1933 effective
throughout the country. However, problems of land tenure continued. In fact, these became worse in certain
areas. Among the remedial measures enacted was RA 1946 likewise known as the Tenancy Act which provided
for 70-30 sharing arrangements and regulated share-tenancy contracts. It was passed to resolve the ongoing
peasant unrest in Central Luzon.
As part of his Agrarian Reform agenda, President ElpidioQuirino issued on Oct. 23, 1950 E.O. 335 which
replaced the NLSA with Land Settlement Development Corporation (LASEDECO) which takes over the
responsibilities of the Agricultural Machinery Equipment Corporation and the Rice and Corn Production
Administration.
Ramon Magsaysay Administration
To amplify and stabilize the functions of the Economic Development Corps (EDCOR), Pres. Magsaysay worked for
the establishment of National Resettlement and Rehabilitation Administration (NARRA). This body took over from
the EDCOR and helped in giving some 65,000 acres to 3,000 indigent families for settlement purposes.
Again, it allocated some other 25,000 acres to little more than 1,500 landless families, who subsequently
became farmers.
As further aid to the rural people, the President established the Agricultural Credit and Cooperative
Administration (ACCFA). The idea was for this entity to make available rural credits. Records show that it did
grant, in this wise, almost 10 million dollars. This administration body next devoted its attention to cooperative
marketing.
Along this line of help to the rural areas, President Magsaysay initiated in all earnestness the artesian wells
campaign. A group-movement known as the Liberty Wells Association was formed and in record time managed
to raise a considerable sum for the construction of as may artesian wells as possible. The socio-economic value of
the same could not be gainsaid and the people were profuse in their gratitude.
Finally, vast irrigation projects, as well as enhancement of the Ambuklao Power plant and other similar ones,
went a long way towards bringing to reality the rural improvement program advocated by President
Magsaysay.
President Magsaysay enacted the ffloaws as part of his Agrarian Reform Program:
1. RA 1160 of 1954- Abolisged the LASEDECO and established NARRA to resettle dissents and landless
farmers. It was particularly aimed at rebel returnees providing home lots and farmlands in Palawan and
Mindanao
2. RA 1199 (Agricultural Tenancy Act of 1954)- governed the relationship between landowners and tenant
farmers by organizing share-tenancy and leasehold system. The law provided the security of tenure of
tenants. It also created the Court of Agrarian Relations.
3. RA 1400 (Land Reform Act of 1955)- created the Land Tenure Administration which was responsible for
the acquisition and distribution of large tenanted rice and corn lands over 200 hectares for individuals
and 600 hectares for corporations.
4. RA 821 (Creation of Agricultural Credit Cooperative Financing Administration)- provided small farmers
and share tenants loans with low interest rates of six to eight percent.
 Macapagal administration
Land Reform Code
The Agricultural Land Reform Code (RA 3844) was a major Philippine land reform law enacted in 1963
under President DiosdadoMacapagal
The code declared that it was State policy to:
1. Establish owner-cultivatorship and the economic family-size farm as the basis of Philippine agriculture
and, as a consequence, divert landlord capital in agriculture to industrial development
2. Achieve a dignified existence for the small farmers free from pernicious institutional restraints and
practices
3. Create a truly viable social and economic structure in agriculture conducive to greater productivity and
higher farm incomes
4. Apply all labor laws equally and without discrimination to both industrial and agricultural wage earners
5. Provide a more vigorous and systematic land resettlement program and public land distribution
6. Make the small farmers more independent, self-reliant and responsible citizens, and a source of genuine
strength in our democratic society.
and in pursuance of those policies, established the following:
a. An agricultural leasehold system to replace all existing share tenancy system in agriculture
b. A declaration of rights for agricultural labor
c. An authority for the acquisition and equitable distribution of agricultural land
d. An institution to finance the acquisition and distribution of agricultural land
e. A machinery to extend credit and similar assistance to agriculture
f. A machinery to provide marketing, management, and other technical services to agriculture
g. A unified administration for formulating and implementing projects of land reform
h. An expanded program of land capability survey, classification and registration and
i. A judicial system to decide issues arising under this Code and other related laws and regulations.
Under Martial Law and 1973 Constitution
1. PD 2- declaring the entire Philippines as land reform area
2. PD 27- emancipating the tenant-farmers from bondage of the soil
Marcos administration
September 10, 1972- signed the Code of Agrarian Reform of the Philippines into law which established the DAR,
effectively replacing the Land Authority
In consideration of this law, Marcos also issued PD 442, known as the Labor Code of the Philippines. Thus,
included therein are the following provisions:
1. Art. 9. Determination of land value. For the purpose of determining the cost of the land to be transferred
to the tenant-farmer, the value of the land shall be equivalent to 2 ½ times the average harvest of three
normal crop years immediately preceding the promulgation of PD 27 on Oct. 21, 1972.
The total cost of the land, including interest at the rate of 6% per annum, shall be paid by the tenant in
15 years of 15 equal annual amortizations.
In case of default, the amortization due shall be paid by the farmer’s cooperative in which the defaulting
tenant-farmer is a member, with the cooperative having a right of recourse against him.
The government shall guarantee such amortizations with shares of stock in government-owned and
government-controlled corporations.
2. Art. 10 Conditions of ownership. No title to the land acquired by the tenant-farmer under PD 27 shall be
actually issued to him unless and until he has become a full-fledged member of a duly recognized
 farmer’s cooperative. Title to the land acquired pursuant to PD 27 or the Land Reform Program of the
Government shall not be transferrable except by hereditary succession or to the Government in
accordance with the provisions of PD 27, the Code of Agrarian Reforms and other existing laws and
regulations.
3. Art. 11. Implementing agency. The DAR shall promulgate the necessary rules and regulations to
implement the provisions of this Chapter.
In 1978, the DAR was renamed the Ministry of Agrarian Reform.
Labor Code of the Philippines, as amended
Chapter II: EMANCIPATION OF TENANTS
Art. 7. Statement of objectives. Inasmuch as the old concept of land ownership by a few has spawned valid and
legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate
grievances being one of the fundamental objectives of the New Society, it has become imperative to start
reformation with the emancipation of the tiller of the soil from his bondage.
Art. 8. Transfer of lands to tenant-workers. Being a vital part of the labor force, tenant-farmers on private
agricultural lands primarily devoted to rice and corn under a system of share crop or lease tenancy whether
classified as landed estate or not shall be deemed owner of a portion constituting a family-size farm of 5
hectares, if not irrigated and 3 hectares if irrigated.
In all cases, the land owner may retain an area of not more than 7 hectares if such landowner is cultivating such
area or will not cultivate it.
1987 Constitution
Article II: Declaration of Principles and State Policies
State policies
Sec. 18. The State affirms labor as a primary social economic force. It shall protect the right of workers and
promote their welfare.
Sec. 19. The State shall develop a self-reliant and independent national economy effectively controlled by
Filipinos.
Sec. 20. The State recognizes the indispensable role of the private sector, encourages private enterprise, and
provides incentives to needed investments.
Sec. 21.The State shall promote comprehensive rural development and agrarian reform.
Corazon Aquino administration
President Aquino envisioned agrarian and land reform as the centerpiece of her administration’s social
legislative agenda. However, her family background and social class as a privileged daughter of a wealthy and
landed clan became a lightning rod of criticisms against her land reform agenda. On Feb. 22, 1987, three
weeks after the resounding ratification of the 1987 Constitution, agrarian workers and farmers marched to the
historic Mendiola Street near the Malacanan Palace to demand genuine land reform from Aquino’s
administration. However, the march turned violent when Marine forces fired at farmers who tried to go beyond
the designated demarcation line set by the police. As a result, 12 farmers were killed and 19 were injured in this
incident now known as the Mendiola Massacre. This incident led some prominent members of the Aquino Cabinet
to resign their government posts.
In response to calls for agrarian reform, President Aquino issued PP 131, instituting a Comprehensive Agrarian
Reform Program; and EO 229, providing for the mechanisms, on July 22, 1987. These outlined her land reform
program, which included sugar lands. In 1988, she issued EO No. 129-A: DAR. Thereafter, with her backing, the
new Congress of the Philippines passed RA 6657, more popularly known as the Comprehensive Agrarian Reform
Law of 1988.
The law paved the wat for the redistribution of agricultural lands to tenant-farmers from landowners, who were
paid in exchange by the government through just compensation but were also allowed to retain more than 5 ha
of land. However, corporate landowners were also allowed under the law to “voluntarily divest a proportion of
their capital stock, equity or participation in favor of their workers or other qualified beneficiaries’, in lieu of
turning over their land to the government for redistribution. Despite the flaws in the law, the DC upheld its
constitutionality in 1989, declaring the implementation of the CARP provided by the said law, as a revolutionary
kind of expropriation
Despite the implementation of CARP, Aquino was not spared from the controversies that eventually centered on
Hacienda Luisita, a 6,453-hectare estate located in the Province of Tarlac, which she, together with her siblings
inherited from her father Jose Cojuangco.
Critics argued that Aquino bowed to pressure from relatives by allowing stock redistribution under EO 229.
Instead of land distribution, Hacienda Luisita reorganized itself into a corporation and distributed stock. As such,
ownership of agricultural portions of the hacienda were transferred to the corporation, which in turn, gave its
shares of stocks to farmers.
The arrangement remained in force until 2006, when the DAR revoked the stock distribution scheme adopted in
Hacienda Luisita, and ordered instead the redistribution of a large portion of the property to the tenant-farmers.
The Department stepped into the controversy when in 2004, violence erupted over the retrenchment of workers
in the Hacienda, eventually leaving 7 people dead.
Ramos administration
President FVR speeded the implementation of CARP of former pres Aquino in order to meet the 10-year time
frame. However, there were constraints such as the need to firm up the database and geographic focus,
generate funding support, strengthen inter-agency cooperation, and mobilize implementation partners, like the
non-government organizations, local governments, and the business community. In 1992, the government acquired
and distributed 382 hectares of land with nearly a quarter of a million farmer-beneficiaries. This constituted
41% of all land titles distributed by the DAR during the last 30 years. But by the end of 1996, the DAR had
distributed only 58.25% of the total area it was supposed to cover. From January to December 1997, the DAR
distributed 206, 612 hectares. That year, since 1987, the DAR had distributed a total of 2.66M hectares which
benefited almost 1.8M tenant-farmers.
One major problem that the Ramos administration faced was the lack of funds to support and implement the
program. The P50Mallotted by RA 6657 to finance the CARP from 1988 to 1998, was no longer sufficient to
support the program. To address this problem, Ramos signed RA 8532 to amend the CARL which further
strengthened the CARP by extending the program to another 10 years. Ramos signed this law on Feb. 23, 1998-
a few months before the end of Ramos’term.
Estrada administration – waley
Arroyo administration
On September 27, 2004, PGMA signed EO 364, and the DAR was renamed to Department of Land Reform. This
EO also broadened the scope of the department, making it responsible for all land reform in the country. It also
placed the Philippine Commission on Urban Poor (PCUP) under its supervision and control. Recognition of the
ownership of ancestral domain by indigenous peoples also became the responsibility of this new department,
under the NCIP.
On August 23, 2005, PGMA signed EO 456 and renamed the DARL back to DAR since the Comprehensive
Agrarian Reform Law goes beyond just land reform but includes the totality of all factors and support services
designed to lift the economic status of the beneficiaries.
Benigno Aquino Jr Term
When PNoy took office, there was a renewed push to complete the Agrarian Reform. The DAR adopted a goal
of distributed all CARP-eligible land by the end of PNoy’s term. As of June 2013, 694,181 ha remained to be
distributed according to DAR.
Hacienda Luisita has been a notable case of land reform.
ARTICLE 13 OF THE CONSTITUTION: SOCIAL JUSTICE AND HUMAN RIGHTS
RA 6657- Comprehensive Agrarian Reform Program
Constitution of the Philippines
- Supreme law
- Democratic and republican State
- Enacted in 1987, during the administration of PCory, and is popularly known as the 1987 Constitution
- 18 parts, excluding the Preamble, which are called Articles
Social Justice and Human Rights
- Refers to the idea of creating a society or institution that is based on the principles of equality and
solidarity, that understands and values human rights, and that recognizes the dignity of every human
being
- Based on the concepts of human rights and equality and involves a greater degree of economic
egalitarianism through progressive taxation, income redistribution, or even property redistribution.
Article XIII: Social Justice and Human Rights
- Labor
- Agrarian and Natural Resources Reform
- Urban Land Reform and Housing
- Health
- Women
- Role and Rights of People’s Organizations
- Human Rights
Comprehensive Agrarian Reform Program
- The CARP is the current law under which land reform is conducted. Large land-holdings are broken up
and distributed to farmers and workers on that particular hacienda. The crops grown on such haciendas
include sugar and rice. Each farmer is giving a certificate of land ownership award or CLOA for their
new property. Under the law, a landowner can only retain 5 ha., regardless of the size of the hacienda.
- Conflict can arise between previous landowners and beneficiaries and between competing farmers’
group that have conflicting claims.
- On December 2008, CARP expired and the ff year, CARPER (CARP Extension with Reforms) was passed.
It expired in 2014.
Objectives of Agrarian Reform:
1. Political
1. to put an end to conflicts pertaining to land ownership;
2. to bring about harmony between the rural people and the urban residents
 3. to bring stability in the political set up of the country
2. Social
4. to bring about equality in terms of opportunities, income as well as wealth
3. economic
5. enhancing agricultural production
6. enhancing agricultural productivity
7. bettering capital formation
8. providing employment to more agricultural works
9. enhancing demand for raw materials and services
10. improving balance of payments by facilitating export activities
11. trying to increase production at home so that imports don’t have to be relied upon
12. enhancing cooperation as well as regulation between agricultural sector and the non-agricultural
sector
CARP Major Features
- it provides for the coverage of all agricultural lands regardless of crops produced or tenurial status of
the tiller
- it recognizes as beneficiaries of the program all workers in the land given that they are landless and
willing to till the land
- it provides for the delivery of support services to program beneficiaries
- it provides for arrangements that ensure the tenurial security of farmers and farm workers such as the
leasehold arrangement, stock distribution option and production and profit sharing; and
- it created an adjudication body that will resolve agrarian disputes
Bill of Rights for Agricultural Labor
1. right to self-organization
2. right to engage in concerted activities like strike, picketing, boycott
3. right to minimum wage
4. right to work for not more than 8 hours
5. right to claim damages for death or injuries sustained while at work
6. right to compensation for personal injuries, death or illness
7. right against suspension
Imperatives of Agrarian Reform
1. land reform would increase production
2. it would provide for capital needed to industrialize
3. land reform is the answer to the communist challenge
4. it would correct the present imbalance in our society
5. it would make democracy truly meaningful to our people
Components of Agrarian Reform
1. land distribution- most effective way of providing security of tenure to tillers of the soil
2. companion measures- credit and modern and better methods of production, creation and development of
new social institutions to assist the farmers
The Code of Agrarian Reforms (RA 3844 as amended) Beneficiaries under the Code:
1. tenanted farmers
2. agricultural wage earners or farm workers
3. settlers including migrant workers
4. owner-cultivators of less than family sized farms
Principles of CARP
- highest consideration to the welfare of the landless farmers and workers
- due regard to the rights of landowners to just compensation
- recognition of the rights of farmers, farm workers, landowners, cooperatives and other independent
organizations to participate in the plans, organization and management of CARP
- provision of support to agriculture through appropriate technological research
- provision of adequate financial, production, marketing and other services
Scope of CARP
The ownership or control of about 10.3M hectares of agricultural land, representing about 1/3rd of the
total land area of the Philippines, shall be transferred over a 10-year period to an estimated 3.9M
beneficiaries.
Objections to Agrarian Reform
1. fragmentation of farm-holdings
2. small farms uneconomic
3. small landholdings included
4. agrarian reform failed in the past
RA 6657 Beneficiaries
- all agricultural lessees
- share tenants regardless
1. crops
2. regular farm workers
3. seasonal farm workers
4. other farm workers
5. farmer’s organization
6. cooperatives
- agricultural graduates
- rural women
- veterans and relatives of enlisted men and women
- retirees of the AFP and the Integrated National Police
- rebel returnees and surrenderees
Qualifications of an Agrarian Reform Beneficiary
1. landless
2. at least 15 y/o or head of the family at the time the property was transferred in the name of the
Republic of the Philippines;
3. has the willingness, ability and aptitude to cultivate the land and make it as productive as possible (Sec.
23, RA 6657)
Note: items (b) and (c) above are meant to ensure that the recipients of the land will judiciously use it and make
it productive agricultural land
Lands Covered by CARP
- all alienable and disposable lands of the public domain devoted to or suitable to agriculture
- all lands of the public domain in excess of the specific limits as determined by Congress
- all other lands owned by the government devoted to or suitable to agriculture; and
- all private lands devoted to or suitable to agriculture regardless of the agricultural products raised or
that can be raised therein (Sec. 4 RA 6657)
Lands NOT Covered by CARP
- those which are not suitable for agriculture, and those which are classified as mineral, forest, residential,
commercial or industrial land
- those which have been classified and approved as non-agricultural prior to June 15, 1988 as ruled under
DOJ Opinion No. 44, s. 1990
- those which are exempt pursuant to Sec. 10 RA 6657
- those which are devoted to poultry, swine or livestock raising as of June 15, 1988 pursuant to SC ruling
on Luz Farms v Hon Secretary of Agrarian Reform (GR No. 86339 Dec. 4, 1990) and
- those which are retained by the landowner (not covered insofar as land acquisition and distribution but
covered with respect to other provisions, particularly leasehold)
Lands Exempted by CARP Coverage
- lands actually, directly and exclusively used and found to be necessary for park, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves, national defense,
school sites and campuses including experimental farm stations operated by public or private schools for
education purposes, seeds and seedlings research and pilot production centers, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and
cemeteries, penal colonies and penal farms actually worked by the inmates, and government and private
research and quarantine centers; and
- lands with 18% slope and over, except those already developed as of June 15, 1988 (Sec. 10 RA
6657)
Proof of Ownership given to Beneficiaries
1. Emancipation Patents (EPs) for OLT lands
2. Certificate of Land Ownership Award (CLOAs) for CA, VOS, and EO 407 lands, resettlement areas and
landed estates
3. Free Patents for public lands
Note: Beneficiaries of the Integrated Social Forestry Program covering agro-forestry public lands whose
ownership cannot be transferred, received Certificates of Stewardship Contract (CSCs) which are good for 25
years, renewable for another 25 years.
By this time, the natives or aborigines of the country gradually obtained a voice, after having been silenced in
centuries past by the society of affluence. After having been classified a non-citizens, or even as non-humans, as
barbarians because they refused to be Catholicized, they now realized that they too, have not only natural
rights, but rights given by law over the lands they had been cultivating and preserving for all time. Thus, laws
were now enacted to recognize these rights.
CARP Implementing Agencies
- DENR
- DA
- LBP
- LRA (Land Registration Authority)
- DPWH
- NIA (National Irrigation Authority)
- DTI
- DOLE-BRW (Bureau of Rural Workers)
RA 8371: An Act to Recognize and Promote the Rights of Indigenous Cultural Communities/ Indigenous
Peoples, Creating a National Commission on Indigenous Peoples, Establishing Implementing Mechanisms,
Appropriating Funds therefor, and for other purposes, otherwise known as the IPRA Law (1997)
SECTION 1. Short Title. — This Act shall be known as “The Indigenous Peoples’ Rights Act of 1997”.
SECTION 2. Declaration of State Policies. — The State shall recognize and promote all the rights of
Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) hereunder enumerated within the framework of
the Constitution:
a) The State shall recognize and promote the rights of ICCs/IPs within the framework of national unity
and development;
b) The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their economic,
social and cultural well being and shall recognize the applicability of customary laws governing property rights
or relations in determining the ownership and extent of ancestral domain;
c) The State shall recognize, respect and protect the rights of ICCs/IPs to preserve and develop their
cultures, traditions and institutions. It shall consider these rights in the formulation of national laws and policies;
d) The State shall guarantee that members of the ICCs/IPs regardless of sex, shall equally enjoy the full
measure of human rights and freedoms without distinction or discrimination;
e) The State shall take measures, with the participation of the ICCs/IPs concerned, to protect their rights
and guarantee respect for their cultural integrity, and to ensure that members of the ICCs/IPs benefit on an
equal footing from the rights and opportunities which national laws and regulations grant to other members of
the population; and
f) The State recognizes its obligations to respond to the strong expression of the ICCs/IPs for cultural
integrity by assuring maximum ICC/IP participation in the direction of education, health, as well as other services
of ICCs/IPs, in order to render such services more responsive to the needs and desires of these communities.
Towards these ends, the State shall institute and establish the necessary mechanisms to enforce and guarantee
the realization of these rights, taking into consideration their customs, traditions, values, beliefs, interests and
institutions, and to adopt and implement measures to protect their rights to their ancestral domains.
- Up to 15% of Phil population- about 10M people-belong to distinct ICC and retain a close link with their
traditions. They avoided Hispanization during Spain’s 350-yr colonization. In 1987, after the fall of
Marcos regime, a revised Philippine Constitution recognized the ancestral land rights of IP, and 10 years
later, in 1997, those rights finally became law in the IPRA.
- The IPRA is modeled on the provisions of the UN Draft Declaration of IP rights. In theory, IPRA is one of
the most enlightening laws dealing with IPs, recognizing the free prior and informed consent (FPIC) of IPs,
and asserting that in the absence of such a clear lever of consent, a project cannot proceed. In practice
however, this regularly undermined not least by legislation such as the 1995 Mining Code, which in many
cases gives mining claims to the same Indigenous land supposedly covered by IPRA. IPs, ICCs and
organizations and their supporters have been vocal in fighting for their legal rights for many years, and
the struggle continues.
Administrative Order No. 1 s of 1998, Rules and Regulations Implementing RA 8371, otherwise known as
The Indigenous Peoples’ Rights Act of 1997
NCIP Administrative Order No. 4 s 2012, Revised Omnibus Rules on Delineation and Recognition of
Ancestral Domains and Lands of 2012
Joint DAR-DENR-LRA-NCIP Administrative Order No. 01-12 s of 2012: Clarifying, Restating and Interfacing
the Respective Jurisdictions, Policies, Programs and Projects of the DAR, DENR, LRA, and the NCIP in Order
to Address Jurisdictional and Operational Issues Between and Among the Agencies
Subject: Guidelines and Procedures for the Recognition, Documentation of all Sustainable Traditional and
Indigenous Forest Resources Management Systems and Practices (STIFRMSP) of Indigenous Cultural
Communities or Indigenous Peoples Ancestral Domain/Land
History of Agrarian Reform
- The CARP years since 1988- for the first time, the program covered all agricultural lands regardless of
crop and tenurial arrangements. Land distribution increased substantially-about 7M hectares with about
4.2M farmers beneficiaries. But the total figures hide disturbing underperformances
1. Only about 1.5M ha of private agricultural lands have been covered for an accomplishment rate
of only about 50% after 20 years
2. Moreover, the lack of support services, funding and infrastructure is still prevalent. Of the original
estimate of P220B to complete the program, only P203B have been budgeted by Congress, of
which only about P170B have been released.
RA 9700
- A more equitable distribution and ownership of land, with due regard to the rights of landowners to just
compensation
- The Agrarian Reform Program is founded on the right of the farmers and regular farmworkers who are
landless to own directly or collectively the lands they till or in the case of other farmworkers to receive a
just share of the fruits thereof
- As much as practicable, the implementation of the program shall be community-based to assure, among
others, that farmers shall have greater control of farm gate prices, and easier access to credit.
- The State shall recognize the right of farmers, farmworkers and landowners, as well as cooperatives and
other independent farmer’s organizations, to participate in the planning, organization, and management
of the program.
- The State shall recognize and enforce, consistent with existing laws, the rights of rural women to own and
control land, taking into consideration the substantive equality between men and women as qualified
beneficiaries
- The State shall apply the principles of agrarian reform, or stewardship, whenever applicable, in
accordance with law, in the disposition or utilization of other natural resources
- The State may resettle landless farmers and farm workers in its own agricultural estates, which shall be
distributed to them in the manner provided by law.
- By means of appropriate incentives, the State shall encourage the formation and maintenance of
economic-size family farms to be constituted by individual beneficiaries and small landowners.

A Synopsis

- For a long period of time, the agrarian system of Philippines was being controlled by the large
landlords. The small farmers in Philippines were struggling for their rights to land and other natural
resources.
- Implementation of Agrarian Reform in Philippines. The implementation of Agrarian reforms proceeded a
very slow pace. This was due to the lack of political will. The redistribution of land was also very slow.
- Comprehensive Agrarian Reform Law: Philippines (RA 6657) alternatively called the Comprehensive
Agrarian Reform law was signed by President Corazon Aquino on 10th June, 1988. The CARL is
responsible for the implementation of the CARP in Philippines. The law focused on industrialization in
Philippines together with social justice.
 - While there is significant empirical evidence that agrarian reform has yielded significant benefits and
has the potential for even greater benefits, the fact is that it has encountered implementation problems.
Regardless of the problems encountered by CARP, the point is that CARP is not the cause of the continuing
poverty nor the obstacle to solving it. On the contrary, completing CARP in accordance with the mandate
of the Constitution is a necessary condition to correct social injustice, and achieve sound agricultural
development and economic growth.

Lecture: October 27, 2018

Life expectancy is not applicable in labor cases. It only applies to criminal cases. Hence, you cannot require the
employer to pay the backwages of a person until he retires.
Prescriptive period for money claims- 3 yrs
Prescriptive period for illegal dismissal- 4 yrs
SOCIAL JUSTICE
1987 Philippine Constitution
Article II
Sec. 9. The State shall promote a just and dynamic social order that will ensure the prosperity and independence
of the nation and free the people from poverty through policies that provide adequate social services, promote
full employment, a rising standard of living, and an improved quality of life for all.
Sec. 10. The State shall promote social justice in all phases of national development.
Sec. 11. The State values the dignity of every human person and guarantees full respect for human rights.
Sec. 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and
promote their welfare.
Article III: Bill of Rights
Sec. 1. No person shall be deprived of life, liberty or property without due process of law, nor shall any person
be denied the equal protection of the laws.
Sec. 18 (2). No involuntary servitude of any form shall exist except as a punishment for a crime whereof the
party shall have been duly convicted.
Article XIII
Sec. 2. The promotion of social justice shall include the commitment to create economic opportunities based on
freedom of initiative and self-reliance.
Sec. 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all.
The Bill of Rights focuses on civil and political rights, whereas Art. XIII focuses on social and economic rights.
Moreover, the guarantees in the Bill of Rights are generally self-implementing, i.e. they can be appealed to even
in the absence of implementing legislation. On the other hand, the social and economic rights guaranteed in Art.
XIII generally require implementing legislation.
Protected property includes all kinds of property found in the Civil Code. It has been deemed to include vested
rights such as perfected mining claim, or a perfected homestead, or a final judgment. It also includes the right to
work and the right to earn a living.
Youth
Article II. Sec. 13. The State recognizes the vital role of the youth in nation-building and shall promote and
protect their physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in the youth patriotism
and nationalism, and encourage their involvement in public and civic affairs.
Women
Article II. Sec. 14. The State recognizes the role of women in nation-building and shall ensure the fundamental
equality before the law of women and men.
Article XIII. Sec. 14. The State shall protect working women by providing safe and healthful working conditions,
taking into account their maternal functions, and such facilities and opportunities that will enhance their welfare
and enable them to realize their full potential in the service of the nation.
Private Sector
Article II Sec. 20. The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.
Disabled
Article XIII Sec. 13. The State shall establish a special agency for disabled persons for their rehabilitation, self-
development, and self-reliance, and their integration into the mainstream of society.
Civil Code
Note: civil code can only be used in labor cases in issues relating to damages; quantum: preponderance of
evidence
In labor cases- substantial evidence
Art. 19 (golden rule). Every person must, in the exercise of his rights and in the performance of his duties, act with
justice, give everyone his due, and observe honesty and good faith.
Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed with
public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the
special laws and labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions,
hours of labor and similar subjects.
Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety
and decent living for the laborer.
Labor Code
Art. 3. Declaration of basic policy. The State shall afford protection to labor, promote full employment, ensure
equal work opportunities regardless of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of
tenure, and just and humane conditions of work.
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.
SOCIAL LEGISLATION: SOCIAL LAW/LEGISLATION AND LABOR
Social Law
- is that body of rules and statutes aimed at promoting the general welfare of all the people, with special
preference to labor.
 - Two-fold justification of the labor orientation of social laws:
- 1. Quantitative reason- because labor constitutes the great majority of the population, hence any effort
to achieve the well-being of all the people, or at least the greatest good for the greatest number, should
be directed towards this sector.
- 2. Qualitative reason- since the aim is to promote the welfare of society, any attempt to strengthen
society should be addressed towards its weakest link, which is labor.
- Thus, while social laws- SSS, GSIS, PhilHealth, have workers as their direct beneficiaries, their ultimate
end is the well-being of society in general. Labor Law and Social Law therefore are of the same
objective-the promotion of social justice.
Differences:
Social law is broader in concept.
Labor laws seek to improve the well-being of laborers, the lower classes of society. Social law tries to ensure the
welfare and economic security of all the people, and should this not be possible, at least the greatest good to
the greatest number. Labor law, therefore, can be said to be a part of social law.
AS TO OBJECT- labor law seeks to improve the well-being of labor in particular; social law aims to promote the
welfare of society in general
AS TO SUBJECT MATTER- law on labor deals on subjects of proximate and direct interest to workers (e.g. wages,
hours of work); social law treats of matters of remote or indirect interest to workers (e.g. employment
compensation, social security etc)
AS TO APPLICATION- labor law provides benefits to workers actually employed; social law is concerned with
those whose employment is interrupted by sickness, disability, death, retirement, or other causes.
OTHERWISE STATED: Social legislation embraces all lawswhich aid or promote the welfare of all members or
sectors of society, while labor law covers laws which specifically aid or promote the welfare of employees or
workers as such.

Social Security System, Government Security Insurance System, Employees Compensation Commission
DIFFERENCES
ECC SSS GSIS
Work-related illness or Occurrence of contingency whether Occurrence of
BASIS injury or not work-connected contingency whether or
not work-connected
EMPLOYEE
Not over 60 yrs of age Compulsory Compulsory
Over 60 years but -all employees not over 60 yrs -all persons who have
paying contributions to including: reached the compulsory
qualify for retirement or Domestics retirement age,
life insurance Self-employed irrespective of
Individual farmers and fisherfolk employment status
COVERAGE Partners and sole-proprietors Except
Actors/actresses Members of AFP and
News correspondents/scriptwriters PNP
Professional athletes, coaches, Contractuals who have no
trainers and jockeys ee-er relationship with
Voluntary agency serviced
-OFWs
-spouse devoting fulltime managing
 household affairs (unless engages in
vocation subject to mandatory
coverage)
EMPLOYER
All employers Employers in private sector All government agencies
(private/public) and instrumentalities
including GOCCs
DEFINITION OF Any person compulsorily -Any person who performs services Any person receiving
EMPLOYEE covered by GSIS or SSS for an employer in which physical compensation while in the
(best definition of Any person employed and/or mental efforts are used and service of an employer,
an employee is as casual, emergency, who receives compensation for such whether by election or
with the SSS) temporary, substitute or services, where there is an ee-er appointment, irrespective
Casual employee contractual relationship of status of appointment,
may include task- -Self-employed is both employer including barangay and
based employees and employee sanggunian officials
(not long term), THE FOLLOWING, however, are not COMPENSATION is
considered employment: defined as basic pay or
-purely casual employment salary received
-service on alien vessel outside excluding:
Philippines -per diems
-government service -bonuses
-service for foreign organization or -OT pay
government -honoraria
-other services of temporary and -allowances
other employees excluded by SSC -other emoluments in
addition to basic pay not
integrated in basic pay
DEFINITION OF Any person employing Any person who carries on in the The national government,
EMPLOYER services of employee Philippines any trade, business, its political subdivisions,
(7 definitions of (whether private or industry or undertaking or activity branches, agencies or
employer-including public sector) and uses services of another who is instrumentalities, including
other entities) under his orders as regards the GOCCs and financial
employment except government or institutions with original
GOCCs (thus, relates only to private charters, the constitutional
sector employment) commissions and judiciary
(public sector
employment)
BENEFICIARIES Primary: dependent Primary: Primary:
spouse until he -dependent spouse until he -legal dependent spouse
remarries; dependent remarries until he/she remarries
children -dependent legitimate, legitimated, -dependent children
Secondary: dependent legally adopted or illegitimate Secondary:
parents, illegitimate children (gets only 50% share of -dependent parents
children and legitimate legitimate or adopted ones unless -legitimate descendants
descendants (subject to there are no legitimate or adopted subject to restriction on
restrictions on children) dependent children
dependent children) Secondary: dependent parents
Tertiary: any person designated as
beneficiary by the employee
DEPENDENTS -legitimate, legitimated, - legitimate, legitimated, legally - legitimate, legitimated,
Case law: common legally adopted or adopted or illegitimate child who is legally adopted or
law wife not legal acknowledged natural unmarried, not gainfully employed, illegitimate child who is
spouse was the child who is unmarried, not over 21 yrs of age or if over unmarried, not gainfully
recipient of the SSS not gainfully employed, 21, incapable of self-support due to employed, not over 21
benefit in a mining not over 21 yrs of age physical/mental defect which is yrs of age or if over 21,
case bec. Marriage or if over 21, incapable congenital or acquired during incapable of self-support
with legal spouse of self-support due to minority due to physical/mental
was void ab initio physical/mental defect -legal spouse entitled by law to defect which is congenital
(14y/o) which is congenital or receive support from member or acquired during
acquired during minority -parents who are receiving regular minority
-legitimate spouse living support from member -legitimate spouse
with employee dependent for support
-parents of employee on member
wholly dependent on -parents dependent for
him for regular support support on member
BENEFITS -temporary total -permanent total disability -temporary total
disability -permanent partial disability disability
-permanent total -death benefit -permanent total
disability -funeral benefit disability
-permanent partial -sickness benefit -permanent partial
disability -retirement benefit disability
-death benefit -maternity benefit (as amended by -survivorship benefit
-funeral benefit RA 7322) -funeral benefit
-medical benefits -retirement benefit
-rehabilitation services -separation benefit
-unemployment or
involuntary separation
benefit
-insurance-compulsory or
optional
ENTITLEMENT TO None Member has reached age of 60 Optional: member meets
RETIREMENT (optional) or 65 (compulsory) ff:
BENEFITS -has worked for at least
15 yrs
-is at least 60yrs of age
at time of retirement
-not receiving monthly
pension benefit from
permanent total
disability
Compulsory: member is
65y/o with at least 15
yrs of service (if service is
less than 15 yrs, he may
be allowed to continue in
accordance with Civil
Service Rules and
Regulations)
DISABILITIES -temporary disability -complete loss of sight in both eyes -complete loss of sight in
DEEMED lasting over 120 days -loss of 2 limbs at or above the both eyes
PERMANENT -Complete loss of sight ankle or writs -loss of 2 limbs at or
TOTAL in both eyes -permanent complete paralysis above the ankle or writs
-loss of 2 limbs at or -brain injury resulting in incurable -permanent complete
above ankle or wrist imbecility or insanity paralysis
-permanent complete -other cases determined by SSS -brain injury resulting in
paralysis of 2 limbs incurable imbecility or
-brain injury resulting in insanity
incurable imbecility -other cases determined
 -other cases determined by GSIS
by medical director of
SSS
SYSTEM EXCUSED For all contingencies in: -for permanent disability,
FROM LIABILITY -intoxication in the ff:
-willful intent to injure or -grave misconduct
kill oneself or another -notorious negligence
-notorious negligence -willful intent to kill
oneself or another
-habitual intoxication
DISABILITIES Complete and Complete and permanent loss of use Complete and permanent
DEEMED permanent loss of use of of a digit, limb, ear or both ears, loss of use of a digit,
PERMANENT a digit, limb, ear or hearing in one or both ears, or sight limb, ear or both ears,
PARTIAL both ears, hearing in in one eye hearing in one or both
one or both ears, or ears, or sight in one eye
sight in one eye
FUNERAL BENEFIT 20k 20k 20k
WHO PAYS employer Employer and employee Employer and employee
REMITTANCE
NOTICE Employee to notify Employee to notify employer within
REQUIREMENT employer within 5 days 5 days from injury or illness (unless
from injury or illness it is no longer necessary under the
(unless it is no longer exceptions)
necessary under the Employer to notify SSS within 5
exceptions) days from notice
Employer to record the
same in logbook within
5 days from notice
Employer to notify
SSS/GSIS within 5 days
from recording in
logbook
EFFECT OF SSS absolved unless Legal and eligible
ERRONEOUS notified of other claim claimant may still
PAYMENT prior to payment demand benefits, without
prejudice to right of
GSIS to sue improper
claimant
DISPUTE File claims with File claim with SSS File claim with GSIS
SETTLEMENT SSS/GSIS Appeal to SS Commission Appeal to GSIS Board
Appeal to ECC Appeal to CA Appeal to CA
Appeal to CA Appeal to SC Appeal to SC
Appeal to SC
*dependents: (compare with the definition of dependents under the family code- some members under the FC are not included,
Question? Are they excluded from the dependents under the SSS, GSIS, ECC?)
Which prevails between SSS and Civil Code? SSS. Civil code and family code are general laws, SSS pertains to employees and a
special law. If harmonization is possible, SSS exception to the general law.

Maternity leave benefit for Female Government Employees

- Not found in GSIS. This does not mean however that female government employees are not entitled to
this benefit. This is provided for in the ff:
1. Civil Service Law and Rules, as amended such as:
  Section 12, Rule XVI, Omnibus Rules Implementing Book V of EO 292: Married women in
the government service who have rendered two years or more of continuous service shall, in
addition to the vacation and sick leave granted to them, be entitled to Maternity Leave of 60
days with full pay
 Section 11 of CSC Memorandum Circular (MC) No. 41 s 1998 as amended by CSC MC
No. 14 s 1999, which stipulates:
 Sec. 11. Conditions for the grant of maternity leave- Married women in the
government service who have rendered an aggregate of 2 or more years of service,
shall, in addition to the vacation and sick leave granted them, be entitled to maternity
leave of 60 calendar days with full pay.
In the case of those in the teaching profession, maternity benefits can be availed of
even if the period of delivery occurs during the long vacation, in which case, both the
maternity benefits and the proportional vacation pay shall be received by the teacher
concerned.
Maternity leave of those who have rendered one year or more but less than two years
of service shall be computed in proportion to their length of service, provided that
those who have served for less than one year shall be entitled to 60 day maternity
leave with full-pay
It is understood that enjoyment of maternity leave cannot be deferred but it should be
availed of either before or after the actual period of delivery in a continuous and
uninterrupted manner, not exceeding 60 calendar days
2. RA 8972 Solo Parent’s Welfare Act of 2000- was enacted to provide a solo parent the
opportunity to take care of his/her child and to develop a bonding between the child and his/her
biological parent. Thus, aside from other benefits granted by said law, solo parents are given
parental leave of 7 working days every year,, provided he/she has rendered service for at least
one year. On the other hand, the Act does not expressly grant maternity leave benefits to solo
parents. It merely cited leave privileges under existing laws which includes Sec. 11 Rule XVI of
CSC Memo Circular No. 41 s 1998. It is to be noted that the purpose of maternity leave is to
allow the mother to recuperate and to take care of her child during the infancy stage since it is at
this time when the child requires attention.
“The grant of maternity leave benefits partakes the nature of a social measure or legislation. Being a
social legislation, it is the welfare or well-being of the intended recipient or beneficiaries-the working
mothers in the employ of the government- that is of primordial concern. Thus, whenever so dictated
by the attendant facts and circumstances the rule on maternity leave benefits may be adjusted
depending on the peculiarities of each case. Ultimately, a law or rule should not be so rigid and
inflexible as to be immune and resistant to any adaptation or change. For when such law or rule loses
its ability to cope with actual exigencies or realities, it loses its force and relevance, and it becomes
useless as an instrument of public order and stability.”
“The Solo Parent’s Act does not explicitly contemplate the grant of maternity leave benefits to solo
parents. In terms of leave privileges, what it extends is a 7 day paternity leave. This fact
notwithstanding, the Commission, in the exercise of its rulemaking powers, deems that the laudable
purpose and intent of the law may be better subserved if the same entitlement, i.e. maternity leave,
be extended to solo parents. The spirit of the law is to remove the social stigma that has attached to
individuals who decide to have a child or children of their own without the benefit of marriage. What
better way to achieve or attain this noble purpose than by equalizing their status with that of their
married counterparts.
Litigation (figure): Employee’s Compensation and State Insurance Fund
Employee whose employer is covered by the SIF and contributing to the SIFDEATH (occupational disease or
illness caused by employment subject to proof that the risk of contracting the same is increased by working
condition) or INJURY/DISEASE  NOTICE to employer within 5 days from occurrence; entry of same in logbook
 EMPLOYER decides within 5 days from entry whether death or injury or disease is work related or not work-
related 
A. IF WORK- RELATED  REPORT the death or injury to SSS or GSIS DECISION 
B. IF NOT WORK-RELATEDEMPLOYEE/HEIRS don’t agree, may file claim directly to SSS/GSIS 
DECISION
a. DECISION is favorable final and executory
b. DECISION is NOT favorable  petition for review with SC OR SSS/GSIS if reversed by EEC
cannot appeal to SC
Appeal procedure (figure)
Notice of appeal  evaluation of appeal  either a. not perfected/incomplete or b. perfected/completed
If a. not perfected/incomplete  notice to GSIS/claimant for hearingappeal completed

Appeal completed  case docketed medical/legal evaluation review committee on technical evaluation 
appeal given due course  ECC action  decision 
If decision: a. not favorable to employee petition for review to SC
If b. favorable to employee  final and executory
Compensable work-related injuries and occupational diseases
- in the course of employment, there is always the risk of being injured or acquiring disease. In most cases,
these are not given attention either by employer or employee. In some instances, the employee just
applies home remedies or goes to medical practitioner and shoulders expenses. Meanwhile, he gets
absent from work, thus having no income. There are rare instances however when the employer either
shoulders all the expenses or at least part of it and considers the employee to be on leave. The usual
practice of an employer however is to advance the funds for the medical treatment of the employee, and
later deducts the same from the wages of the laborer. There is always that policy of no care on the part
of the employer, and the fear of being dismissed from his work on the part of the employee.
Class on Saturday- nov. 10 and Sunday- nov. 11- 4pm onwards
November 10, 2018 lecture
Meaning of “arising out of”and “in the course of” the employment
- the two components of the coverage formula- arising out of and in the course of employment- are said to
be separate tests which must be independently satisfied; however, it should not be forgotten that the
basic concept of compensation coverage is unitary, not dual, and is best expressed in the word, “work
connection”. An uncompromising insistence on an independent application of each of the two portions of
the test can, in certain cases, exclude clearly work-connected injuries.
- The words “arising out of” refer to the origin or cause of the accident and are descriptive of its character,
while the words “in the course of” refer to the time, place, and circumstances under which the accident
takes place.
Two Views
 - The more conservative view is that the causative risk or danger must be inherent in or essentially
connected with the employment itself.
- The more liberal view states that an injury may be regarded as arising out of the employment if it results
from a risk or danger to which the workman is exposed by reason of being engaged in the performance
of his duties, although such danger is not inherent in and has no necessary or essential connection with the
particular employment. This is more in conformity with the statement that an accident arises out of the
employment if it ensues from a risk reasonably incident to the employment, and if it is in some sense due
to the employment. Under this view, an injury arises out of the employment if the employment is one of
the contributing causes without which the accident which actually happened would not have happened.
Application of the rule to seafarers
- Under the 2000 Amended Employment Contract, work-related injury is defined as an injury(ies) resulting
in disability or death arising out of and in the course of employment. Thus, there is a need to show that
the injury resulting to disability or death must arise (1) out of employment and (2) in the course of
employment
- Clearly, to be entitled for death compensation benefits from the employer, the death of the seafarer (1)
must be work-related; and (2) must happen during the term of the employment contract. Under the
Amended POEA Contract, work-relatedness is now an important requirement. The qualification that
death must be work-related had made it necessary to show a causal connection between a seafarer’s
work and his death to be compensable.
Proximate Cause
- what is termed in American cases the proximate cause, is the sufficient cause, which may be the most remote of
an operation chain. It must be that which sets the others in motion and is to be distinguished from a mere pre-
existing condition upon which the effective cause operates, and must have been adequate to produce the
resultant damage without the intervention of an independent cause.
The “ingress-egress/ proximity” Rule
- the general rule in workmen’s compensation law known as the “going and coming rule”, simply stated, is
that “in the absence of special circumstances, an employee injured in, going to, or coming from, his place
of work is excluded from the benefits of workmen’s compensation acts.
- this rule, however, admits four well-recognized exceptions, to wit:
1. where the employee is proceeding to or from his work on the premises of his employer
2. where the employee is about to enter or about to leave the premises of the employer by way of
exclusive or customary means of ingress or egress
3. where the employee is charged, while on his way to or from his place of employment or at his home,
or during his employment, with some duty or special errand connected with his employment
4. and where the employer as an incident of the employment, provides the means of transportation to
and from the place of employment.
Employment includes not only the actual doing of the work but a reasonable margin of time and space
necessary to be used in passing to and from the place where the work is to be done. If the employee be injured
while passing, with the express of implied consent of the employer, to or from his work by a way over the
employer’s premises, or over those of another in such proximity and relation as to be in practical effect a part of
the employer’s premises, the injury is one arising out and in the course of the employment as much as though it
had happened while the employee was engaged in his work at the place of its performance.
In other words, the employment may begin in point of time before the work is entered upon and in point of space
before the place where the work is to be done is reached. Probably, as a general rule, employment may be
said to begin when the employee reaches the entrance to the employer’s premises where the work is to be done;
but it is clear that in some cases the rule extends to include the adjacent premises used by the employee as
means of ingress and egress with the express or implied consent of the employer.
The Laws as actually applied
1. accident on the way to work
Alano v EEC GR No. L-48594 March 16, 1988
2. accident on the way home
Lazo v EEC GR No. 78617, June 18, 1990
3. injury at place of employment not necessary element of compensability
- where an employee is constantly or occasionally on the street in connection with his work, accidents
thereon befalling him are compensable as “arising out of” the employment. As soon as it is established
that the work itself involves exposures to the perils of the streets. The workman can recover for any injury
so occasioned. The fact the risk may be common to all mankind does not disentitle a workman to
compensation if in particular case it arises out of the employment
- in fine, the general rule is that the accident should have occurred at a place of work and this is known as
the “direct premises rule”.
Exceptions to the “Direct Premises Rule”
- the previously discussed “coming and going rule” and the “ingress-egress/proximity rule” are just two of
the exceptions
4. incidents of employment
-it is settled that injuries sustained in connection with acts which are reasonably incidental to the
employment are deemed as arising out of such employment. Generally, such incidents of work include:
a) acts of personal ministration for the comfort or convenience of the employee
b) acts for the benefit of the employer
c) acts done to further the goodwill of the business
d) slight deviation from work, from curiosity or otherwise and
e) acts in emergencies
Acts of Ministration: Personal Comfort Doctrine
- acts performed by an employee within the time and space limits of his/her employment to minister to
personal comfort, such as satisfaction of his/her thirst, hunger or other physical demands, or to protect
himself/herself from excessive cold, shall be deemed incidental to his/her employment and injuries the
employee suffered in the performance of such acts shall be considered compensable and arising out of
and in the course of employment.
Rest or Refreshment
- the general rule is that injuries occurring to an employee during an intermission or break for rest or
refreshment arise in the course of the employment and are compensable. Such rule is not affected by the
fact the employee is paid by the hour and receives no pay for the period covered by such intermission.
Whether an employee, by resting during working hours, departs from, abandons, or breaks his
employment so as to deprive himself of the right to compensation for an injury sustained while so resting
generally depends upon whether such resting, in view of all the circumstances, is reasonably incident to
the employment. The fact that an employee unintentionally falls asleep while he is resting at a proper
time and place does not necessarily deprive him of the right to compensation for an injury received while
so sleeping, upon the ground that he has thereby departed from the course of his employment, except,
perhaps, where his duties are of such nature as to require him to remain awake, as in the case of a
watchman.
Lunch Period
 - in a number of cases, it has been held that an injured workman is entitled to compensation for injuries
received on the employer’s premises, although the accident occurred during lunch period when work was
not actively in progress, where the eating of the lunch on the premises was with the employer’s
knowledge and consent, express or implied. According to some authorities, however, an injury to an
employee during meal hours is not compensable if it results from an independent act of the employee
having no connection with his work or his meal, or if the employee at the time was in a place where he
had no right to be.
Note:
Union Meeting during Lunch Period
- it has been held that an injury received at a union meeting held during a lunch period at the plant for the
purpose of electing a shop steward, the shop steward system being recognized by the employer in its
contract with the union, was not an injury arising out of and in the course of his employment.
While Doing Work at Home
- injuries sustained by an employee at his own home or upon his own premises, in correction with the
performance of the duties of his employment, are generally held to be compensable where such work is
done there pursuant to the terms of the contract, express or implied, or pursuant to the direction or
request of the employer, but not where it is performed voluntarily by the employee for his own
convenience of benefit.
Extra-premises Rule
- the extra-premises rule is otherwise called the “shuttle bus” rule. This rule is the same as that in the old
workmen’s compensation jurisprudence, where the company which provides the means of transportation in
going to and coming from the place of work is liable for the injury sustained by employees while on
board said means of transportation. This is because the company vehicle is an extension of its premises.
Special Errand Rule
- an injury sustained by an employee outside the company premises is compensable if his being out is
covered by an office order or a locator slip or a pass for official business.
While Living, Boarding, or Lodging on Premises of Employer, or at Working Place
- it may be stated, as a general rule, that an injury to an employee living, boarding, or lodging on the
employer’s premises, or at the place where the work is being done, pursuant to an express or implied
requirement of the contract of hiring, if reasonably attributable or incidental to the nature of the
employment, or to the conditions under which he lives in the performance of his duties, is to be regarded
as having arisen out of and in the course of such employment
- Exception: where such residence on the employer’s premises is merely permissive and not required or
where the injury results from a risk or danger which is not reasonably incidental to the employment.
While Traveling
- as to the compensability of injuries to employee, this depends on the performance of duties which
necessitates their travelling from place to place away from the premises of the employer, sustained while
so traveling, deemed as arising out of and in the course of the employment.
Factors to be considered: whether the injury results from a risk
- Which is inherent in the nature of the employment, or
- Which is reasonably incidental thereto or
- To which the employee I specially exposed and
 - Upon whether the employee, at the time of the occurrence of the accident, was engaged in the exercise
of some functions or duties reasonably necessary or incidental to the performance of the contract of
employment or
- If not actively engaged, whether he was at a place where he was authorized or required by such
contract to be.
- It has been said that an employee who is away from home on a business trip for his employer is in most
circumstances under continuous worker’s compensation coverage from the time he leaves until he returns
home, although there are exceptions to this rule.
Where Employee Uses Own Vehicle Which He Also Uses in Performance of Duties
- In some cases in which it appeared that an employee was using his own vehicle at the time he was injured
in an accident while going to or from work, and the he used such vehicle in the performance of his duties
to his employer, it was held that his injuries arose out of and in the course of the employment. This results
has been reached where the employee was injured in a train streetcar accident
Effect of Deviation from Route, Schedule or Mode of Travel
- Deviation by a travelling employee from his usually prescribed route, schedule or mode of travel
constitutes such a departure from the scope or course of his employment.
Dual Purpose Doctrine
- Also known as “Mining of Purposes of Employer and Employee” considers as compensable an injury that
an employee sustains while on a trip undertaken from the benefit of the employer even if in the course
thereof, the employee pursues also a personal purpose.
- This doctrine of American origin, has been adopted by the ECC in its Resolution No. 99-08-0469 dated
August 31, 1999. This means that the doctrine may be applied in the adjudication of employees’
compensation claims.
- The application, however, is subject to the following guidelines:
1. A contingency or injury an employee suffers during a trip that serves both business and
personal purposes is deemed within the course of employment, that is, if the trip
involves the performance of a service for the employer, which would have caused the
trip to be done by someone else, even if such trip had not coincided with a personal
purpose.
This guideline applies to out-of-town trips, trips to, and from work, and to
miscellaneous errands motivated to an extent by an intention of the employee to
transact official business during such trips.
2. When an employee’s trip tends to serve both business and personal purposes, it is
considered a personal trip, if the employee would have made such a trip, in spite of
the failure or absence of the business or official purposes, and if the employee would
not have made the trip because of the failure of the private purpose thereof, and the
non-fulfillment of the business purpose.
Employer- Sponsored Activities
-in determining whether an injury suffered by an employee in the course of recreation is compensable, the test is
whether the recreation was for the employee’s exclusive benefit, or whether the employer had some interest in
the activity. Where an employee is injured while at recreation during a temporary cessation of work, he injury is
compensable as arising out of and in the course of employment where the recreation indulged in was fostered
and encouraged by the employer to the end of efficiency of their service.
Recreational activities fall under the so-called “special engagement rule” which is one of the exceptions to the
“direct premises rule”. This exception covers field trips, intramurals, outings, and picnics when initiated or
sanctioned by the employer. Accidents befalling employees on those occasions are compensable.
Acts of God or Force Majuere
The generally accepted doctrine is that the employer is not responsible for accidents arising from force majeure
or an act of God, as it is usually called, when the employee has not been exposed to a greater danger than
usual.
Exception: the so called positional and local risks doctrine where, if an employee, by reason of his duties, is
exposed to a special or peculiar danger from the elements, that is, one greater than to which other persons in the
community are exposed, and an unexpected injury is sustained by reason of the elements, the injury constitutes
an accident arising out and in the course of the employment within the meaning of the workmen’s compensation
acts.
Stated otherwise, 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, that accident is one arising out of the employment of the person
so injured.
Assault
- An assault, although resulting from a deliberate act of the slayer, is considered an accident within the
meaning of the WCA (Workmen’s Compensation Act) since the word accident is intended to indicate that
the act causing the injury shall be causal or unforeseen, an act for which the injured party is not legally
responsible.
- Jurisprudence is to the effect that injuries sustained by an employee while in the course of his
employment, as the result of an assault upon his person by another employee, or by a third person, no
question of the injured employee’s own culpability being involved, is compensable where, from the
evidence presented a rational mind is able to trace the injury to a cause set in motion by the nature of
the employment, or some condition, obligation or incident therein, and not by some other agency.
- While some earlier cases seem to indicate that the causative danger must be peculiar to the work and not
common to the neighborhood for the injuries to arise out of and in the course of the employment, later
cases have been somewhat more liberal, saying that, to be compensable, injuries do not have to arise
from something peculiar to the employment. Where the duties of an employee entail his presence (at a
place and a time) the claim for an injury there occurring is not to be barred because it results from a risk
common to all others… unless it is also common to the general public without regard to such conditions,
and independently of place, employment or pursuit.
The majority decision ruled the death compensable. The bases:
A. Once it is proved that the employee died in the course of the employment, the legal presumption under
the former compensation law, in the absence of substantial evidence to the contrary, is that the claim
comes within the provisions of the compensation law (Sec. 13) in other words, that the incident arose out
of the workman’s employment.
B. Doubts as to the rights to compensation are resolved in favor of the employee and his dependents
C. The commissioner’s declaration on the work connection might be binding on the Court
D. There are employments, which increase the risk of assault on the person of the employee and it is that
sense that an injury or harm sustained by the assaulted worker arises out of the employment, because the
increased risk to assault supplies the link or connection between the injury and the employment.
Increased Risk Jobs
Among those jobs are:
A. Jobs having to do with keeping the peace of guarding property
B. Jobs having to do with keeping or carrying of money which subject the employee to the risk of assault
because of the increased temptation to robbery
 C. Jobs which expose the employee to direct contact with lawless and irresponsible members of the
community, like that of a bartender and
D. Work as bus driver, taxi driver, or street car conductor
Sickness, defined: Occupational or Compensable Disease
- Article 167(1) of the Labor Code defines compensable sickness as any illness definitely accepted as an
occupational disease listed by the Commission, or any illness caused by employment subject to proof by
the employee that the risk of contracting the same is increased by working conditions. For this purpose,
the Commission is empowered to determine and approve occupational diseases and work-related
illnesses that may be considered compensable based on peculiar hazards of employment
- Section 1(b) Rule III of the Amended Rules on WEC further amplifies sickness, thus: For the sickness and the
resulting disability or death to be compensable, the sickness must be the result of an occupational disease
listed under Annex A of these Rules with the conditions set therein satisfied; otherwise proof must be
shown that the risk of contracting the disease is increased by the working conditions.
- If the illness are not occupational diseases, the claimant must present proof that he contracted them in the
course of his employment. He who alleges a fact has the burden of proving it and a mere allegation is
not evidence. (Galandia v ECC GR No. 70660 (1987)
- An illness is deemed compensable under the increased risk theory if it is caused or precipitated by
factors inherent in the employee’s nature of work and working conditions.
- Aggravation of pre-existing illness is not included.
- An occupational disease is one which develops as a result of hazards peculiar to certain occupations, due
to toxic substances (as in the organic solvent industry) radiation (as in television repairmen) repeated
mechanical injury, emotional strain etc
Ruling: An occupational disease is one which results from the nature of the employment, and by nature is meant
conditions to which all employees of a class are subject and which produce the disease as a natural incident of a
particular occupation, and attach to that occupation a hazard which distinguishes it from the usual run of
occupations and is in excess of the hazard attending the employment in general.
- to be occupational, the disease must be one due wholly to causes and conditions which are normal and
constantly present and characteristic of the particular occupation; that is, things which science and industry
have not yet learned to eliminate. Every worker in every planet of the same industry is alike constantly
exposed to the danger of contracting a particular occupational disease
Duties of Employer Regarding Occupational Disease
- Under Rule III Sec. 2 of the Amended ECC Rules, the employer is bound to require pre-employment
examination of all prospective employees and to provide periodic medical examination of employees
exposed to occupational diseases.
- This may be done by a company retained medical practitioner, but for the protection of the worker, must
be by a public health practitioner, as required by the Labor Code, as amended.
Evidence: Degree of Proof
- If the disease is listed in the Table of Occupational Disease embodied in Annex A of the Riles on EC, no
proof of causation is required. However, if it is not so listed, the employee, this time assisted by his
employer, is required to prove a positive proposition, that is, that the risk of contracting the disease is
increased by the working conditions. The fact that the cause of the disease was not positively identified
does not dispense with the burden of proof.
- Proof of direct causal relation is not, however, indispensably required. It is enough that the claimant
adduces proof of reasonable work connection, whereby the development of the disease was brought
about largely by the conditions present in the nature of the job. Strict rules of evidence are not
 demanded. The degree of proof required is merely substantial evidence, which has been held to be such
relevant evidence as a reasonable mind might accept as sufficient to support a conclusion.
Cancer: the Old Doctrine
- Requisite proof can be given only if the cause of the disease-cancer-can itself be known
- The necessity of proof is present only when the cause of the disease is known. If not known, there is no
duty to present proof, for the law doesn’t demand an impossibility. Thus, the requirement that the disease
was caused or aggravated by the employment or work applies only to an illness where the cause can be
determined or proved.
- Where the causes of an ailment are unknown to and/or undetermined even by medical science, the
requirement of proof of any causal link between the ailment and the working conditions should be
liberalized so that those who have less in life shall have more in law
Suicide: When Compensable
- According to American authorities, it is compensable in the following cases:
1. When it results from insanity resulting from compensable work injury or disease
2. When it occurs during a delirium resulting from compensable disease
- Self-destruction is not presumed. In cases where compensation is sought for a violent death due to
accident, our courts have refused so far to impute to the victim an intention to end his life. The laborer is
presumed to take the necessary precautions to avoid injury to himself, unless an intention is attributed to
him to end his life. That presumption is based on the instinct of self-preservation.
- Contract which are the private laws of the contracting parties should be fulfilled according to the literal
sense of their stipulation, if their terms are clear and leave no room for doubt as to the intention of the
contracting parties, for contracts are obligatory, no matter what their form may be, whenever the
essential requisites for their validity are present
Notorious negligence
- The kind or degree of negligence on the part of the employee which, by virtue of Art. 172, exempts the
State Insurance Fund from liability for injuries suffered by the former
- It is something more than simple or contributory negligence. It signifies as deliberate act of the employee
to disregard his own personal safety. Disobedience to rules and/or prohibition doesn’t in itself constitute
notorious negligence, if no intention can be attributed to the injure to end his life.
Art. 173 Extent of Liability
- Unless otherwise provided, the liability of the SIF shall be exclusive and in place of all other liabilities of
the employer to the employee, his dependents or anyone otherwise entitled to receive damages on
behalf of the employee or his dependents. The payment of compensation under this Title shall not bar
recovery of benefits as provided for in Section 699 of the Revised Administrative Code, RA 1161, as
amended, CA 186, as amended, and other laws whose benefits are administered by the System, or other
agencies of the government.
Excepting Circumstances
Intoxication- refers to a person’s condition in being under the influence of liquor or prohibited drugs to the
extent that his/her acts, words or conduct is impaired visibly, as to prevent him/her from physically and mentally
engaging in the duties of his/her employment
Notorious Negligence- is something more than mere or simple negligence but signifies a deliberate act of the
employee to disregard his own safety, or ignore established warning or precaution
Willful Intent to Injure or Kill Oneself or Another- contemplates a deliberate intent on the part of the employee
to inflict injuries on himself or another
OPTIONS AVAILABLE: BENEFITS UNDER THE COMPENSATION LAW OR UNDER THE CIVIL CODE
- Does the compensation remedy under the WCA (now under the Labor Code) for work-connected death
or injuries exclude other remedies under the Civil Code? Meaning can the injured employee or the heirs
of a deceased employee file compensation claims under the WCA (now ECC), the Civil Code, and the
Labor Code?
- Or would the Rule on Exclusivity apply, that a claim with one excludes the others?
- In Floresca v Philex 136 SCRA 141, involving a complaint for damages for the death of five miners in a
cave-in, the SC was confronted with 3 divergent opinions on the exclusivity rule.
- a. One view is that the injured employee or hi heirs, in case of death, may initiate an action to recover
damages (not compensation under the WCA) with the regular courts on the basis of negligence of the
employer pursuant to the Civil Code.
- b. Another view, enunciated in the Robles case, is that the remedy of an employee for work-connected
injury or accident is exclusive in accordance with Sec.5 of WCA
- c. Last view is that the action is selective and the employee or his heirs have a choice of availing
themselves of the benefits under the WCA or of suing in the regular courts under the Civil Code for higher
damages from the employer by reason of his negligence. But once the election has been exercised, the
employee or his heirs are no longer free to opt for the other remedy, i.e. the employee cannot pursue
both actions simultaneously.
- The majority adopted the latter view, reiterating as main authority its earlier decision in Pacana v Cebu
Autobus Company, 32 SCRA 442. It rejected the doctrine of exclusivity of the rights and remedies
granted by the WCA as laid down in the Robles case.
- If the complainant not only had adopted to recover under this Act but had also been duly paid, a sense
of fair play demands that if a person entitled to a choice of remedies made a first selection and
accepted the benefits thereof, he should no longer be allowed to exercise the second option.
- After one had staked his fortunes on a particular remedy, he is precluded from pursuing the alternate
course, at least until the prior claim is rejected by the Compensation Commission.
Recovery under the Labor Code and the Social Security Law
- Simultaneous recovery of benefits under the ECC of the Labor Code and under the SS Law is allowed.
This is the advisory opinion by the Sec. of Justice to the SSS (May 23, 1989 and Jan. 12, 1990)
explained as:
- “It is true that the SSS law is distinct and different from the Labor Code. However, the provisions of Sec.
15 of SSS law and Art. 173 of Labor Code are in pari material insofar also as both provisions barred the
simultaneous recovery of benefits under both the SSS law and the LC, until Art. 173 was amended by PD
1921 in 1984. The amendment introduced by PD 1921 to Art. 173 lifted the ban against
simultaneous recovery, and is deemed to have repealed by necessary implication the provision of
Sec. 15 of the SSS law which bars such simultaneous recovery of benefits. Since PD 1921 is the latest
expression of the legislative will, it will prevail over Sec. 15 which has become irreconcilably inconsistent
with the said amendatory law. We wish to emphasize, however, that PD 1921 took effect in 1984 and is
deemed to be prospective in operation, in the absence of an express provision giving it retroactive
effect.
Art. 174. Liability of Third Parties
- When the disability or death is caused by circumstances creating a legal liability against a third party,
the disabled employee or the dependents in case of his death shall be paid by the System under this
Title. In case benefit is paid under this Title, the system shall be subrogated to the rights of the disabled
employee or the dependents in case of his death, in accordance with the general law.
- Where the System recovers from such third party damages in excess of those paid or allowed under this
Title, such excess shall be delivered to the disabled employee or other persons entitled thereto, after
deducting the cost of proceedings and expenses of the System. (as amended by Sec. 17 PD 850)
 Art. 175 Deprivation of Benefits
- Except as otherwise provided under this Title, no contract, regulation, or device whatsoever shall operate
to deprive the employee or his dependents of any part of the income benefits, and medical or related
services granted under this Title. Existing medical services being provided by the employer shall be
maintained and continued to be enjoyed by their employee.
November 11, 2018