LABOR STANDARDS LAW

1. WHAT ARE THE 7 SALIENT FEATURES OF THE LC?

1. It reorients labor laws towards development and employment goals.

2. It institutionalizes the NLRC. NLRC procedures assure due process.
3. It abolishes the workmen’s compensation system and integrates workmen’s
compensation into the SSS to be administered by the SSS for private sector and
GSIS for the government sector.
4. It establishes an Overseas Employment Development Board and a National
Seamen Board to undertake the systematic employment of Filipinos overseas
and optimize the national benefit therefrom.
5. It implements the provision of the Constitution placing employees of GOCC’s
under the Civil Service and mandating the National Assembly to standardize their
salaries.
6. It ends the wasteful energy-snapping anarchy and opportunism in the Philippine
labor movement by restructuring it by region and by industry.
7. It abolishes the wage-fixing function of the Wage Commission by transforming it
into a study and research body.
8. It adjusts labor standards laws to the requirements of development and
employment.
2. WHAT ARE THE 7 BOOKS COMPOSING THE LABOR CODE?

Preliminary Title
Chapter I – General Provisions (Articles 1 to 6)
Chapter II – Emancipation of Tenants (Articles 7 to 11)
Book I – Pre-Employment (Article 12)
Title I – Recruitment and Placement of Workers
Chapter I – General Provisions (Articles 13 to 24)
Chapter II – Regulation of Recruitment and Placement Activities (Articles 25 to
35)
Chapter III – Miscellaneous Provisions (Articles 36 to 39)
Title II – Employment of Non Resident Aliens (Articles 40 to 42)

Book II – Human Resources Development Program

Title I – National Manpower Development Program
Chapter I – National Policies and Administrative Machinery for Their
Implementation (Articles 43 to 56)
Title II – Training and Employment of Special Workers
Chapter I – Apprentices (Articles (57 to 72)
Chapter II – Learners (Articles 73 to 77)
Chapter III – Handicapped Workers (Articles 78 to 81)

Book III – Conditions of Employment

Title I – Working Conditions and Rest Periods
Chapter I – Hours of Work (Articles 82 to 90)
Chapter II – Weekly Rest Periods (Articles 91 to 93)
Chapter III – Holidays, Service Incentive Leaves and Service Charges (Articles 94
to 96)
Title II – Wages
Chapter I – Preliminary Matters (Articles 97 to 98)
Chapter II – Minimum Wage Rates (Articles 99 to 101)
Chapter III – Payment of Wages (Articles 102 to 111)
Chapter IV – Prohibitions Regarding Wages (Articles 112 to 119)
Chapter V – Wage Studies, Wage Agreements and Wage Determination (Articles
120 to 127)
Chapter VI – Administration and Enforcement (Articles 128 to 129)
Title III – Working Conditions for Special Groups of Employees
Chapter I – Employment of Women (articles 130 to 138)
Chapter II – Employment of Minors (Articles 139 to 140)
Chapter II – Employment of Househelpers (Articles 141 to 152)
Chapter IV – Employment of Homeworkers (Articles 153 to 155)

Book IV – Health, Safety and Social Welfare Benefits

Title I – Medical, Dental and Occupational Safety
Chapter I – Medical and Dental Services (Articles 156 to 161)
Chapter II – Occupational Health and Safety (Articles 162 to 165)
Title II – Workmen’s Compensation and State Insurance Fund
Chapter I – Policy and Definitions (Articles 166 to 167)
Chapter II – Coverage and Liability (Articles 168 to 175)
Chapter III – Administration (Articles 176 to 182)
Chapter IV – Contributions (Articles 183 to 184)
Chapter V – Medical Benefits (Articles 185 to 190)
Chapter VI – Disability Benefits (Articles 191 to 193)
Chapter VII – Death Benefits (Article 194)
Chapter VIII – Provisions Common to Income Benefits (Articles 195 to 204)
Chapter IX – Records, Reports and Penal Provisions (Articles 205 to 208)
Title III – Medicare (Article 209)
Title IV – Adult Education (Article 210)

Book V – Labor Relations

Title I – Policy and Definitions
Chapter I – Policy (Article 211)
Chapter II – Definitions (Article 212)
Title II – National Labor Relations Commission
Chapter I – Creation and Composition (Articles 213 to 216)
Chapter II – Powers and Duties (Articles 217 to 222)
Chapter III – Appeal (Articles 223 to 225)
 Title III – Bureau of Labor Relations (Articles 226 to 233)
Title IV – Labor Organizations
Chapter I – Registration and Cancellation (Articles 234 to 240)
Chapter II – Rights and Conditions of Membership (Article 241)
Chapter III – Rights of Legitimate Labor Organizations (Article 242)
Title V – Coverage (Articles 243 to 246)
Title VI – Unfair Labor Practices
Chapter I – Concept (Article247)
Chapter II – Unfair Labor Practices of Employers (Article 248)
Chapter III – Unfair Labor Practices of Labor Organizations (Article 249)
Title VII – Collective Bargaining and Administration of Agreements (Articles 250 to 259)
Title VII-A – Grievance Machinery and Voluntary Arbitration (Articles 260 to 262-B)
Title VIII – Strikes and Lockouts and Foreign Involvement in Trade Union Activities
Chapter I – Strikes and Lockouts (Articles 263 to 266)
Chapter II – Assistance to Labor Organizations (Articles 267 to 268)
Chapter III – Foreign Activities (Articles 269 to 271)
Chapter IV – Penalties for Violation (Article 272)
Title IX – Special Provisions (Articles 273 to 277)

Book VI – Post Employment

Title I – Termination of Employment (Articles 278 to 286)
Title II – Retirement from the Service (Article 287)

Book VII – Transitory and Final Provisions

Title I – Penal Provisions and Liabilities (Articles 288 to 289)
Title II – Prescription of Offenses and Claims (Articles 290 to 292)
Title III – Transitory and Final Provisions (Articles 293 to 302)

3. ENUMERATE RELEVANT CIVIL CODE PROVISION.

Civil Code provisions related to Labor Code
Article 1700 in Civil Code provides that the relations between capital and labor are not
merely contractual. They are so impressed with public interest that labor contracts must yield to
the common good. Therefore, such contracts are subject to the special laws on labor unions,
collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor
and similar subjects. (Servidad v. NLRC, GR No. 128682, March 18, 1999)
Neither capital nor labor shall act oppressively against the other or impair the interest or
convenience of the public. (Art. 1701, NCC)
The concern of the law for the workers is further stressed in the provision in the Civil Code
which ordains that in case of doubt, all labor legislations and all labor contracts shall be construed
in favor of the safety and decent living for the laborers. (Art. 1702, NCC)
 SC consistently ruled that both the provisions of Art. 1702 of the civil code and Art. 4 of
the labor code which mandate that all doubts shall be resolved in favor of labor, should be applied
in resolving any doubt or ambiguity in contracts between management and the union. (Plastic
town Center Corp. v. NLRC, GR No. 81176, April 19, 1989)
Civil Code Provisions relevant to Labor:

 Article 1700. The relations between capital and labor are not merely contractual. They
are so impressed with public interest that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor
and similar subjects.
 Article 1701. Neither capital nor labor shall act oppressively against the other, or impair
the interest or convenience of the public.
 Article 1702. In case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer.
 Article 1703. No contract which practically amounts to involuntary servitude, under any
guise whatsoever, shall be valid.
 Article 1704. In collective bargaining, the labor union or members of the board or
committee signing the contract shall be liable for non-fulfillment thereof.
 Article 1705. The laborer's wages shall be paid in legal currency.
 Article 1706. Withholding of the wages, except for a debt due, shall not be made by the
employer.
 Article 1707. The laborer's wages shall be a lien on the goods manufactured or the work
done.
 Article 1708. The laborer's wages shall not be subject to execution or attachment, except
for debts incurred for food, shelter, clothing and medical attendance.
 Article 1709. The employer shall neither seize nor retain any tool or other articles
belonging to the laborer.
 Article 1710. Dismissal of laborers shall be subject to the supervision of the Government,
under special laws.
 Article 1711. Owners of enterprises and other employers are obliged to pay
compensation for the death of or injuries to their laborers, workmen, mechanics or other
employees, even though the event may have been purely accidental or entirely due to a
fortuitous cause, if the death or personal injury arose out of and in the course of the
employment. The employer is also liable for compensation if the employee contracts any
illness or disease caused by such employment or as the result of the nature of the
employment. If the mishap was due to the employee's own notorious negligence, or
voluntary act, or drunkenness, the employer shall not be liable for compensation. When
the employee's lack of due care contributed to his death or injury, the compensation shall
be equitably reduced.
 Article 1712. If the death or injury is due to the negligence of a fellow worker, the latter
and the employer shall be solidarily liable for compensation. If a fellow worker's
intentional or malicious act is the only cause of the death or injury, the employer shall
not be answerable, unless it should be shown that the latter did not exercise due
diligence in the selection or supervision of the plaintiff's fellow worker.
4. ENUMERATE RELEVANT RPC PROVISIONS.
RPC provisions related to Labor Code
The Revised Penal Code contains provisions relevant to labor law. For instance, the
penalty of arresto mayor and a fine not exceeding 300 pesos shall be imposed upon any person
who, for the purpose of organizing, maintaining or preventing coalitions of capital or labor, strike
or laborers or lockout of employers, shall employ violence or threats in such a degree as to
compel or force the laborers or employers in the free and legal exercise of their industry or work,
if the act shall not constitute a more serious offense in accordance with the provisions of the
Revised Penal Code. (Article 289, RPC)
The Revised Penal Code also imposes the penalty of arresto mayor or a fine ranging from
200 to 500 pesos, or both, upon any person, agent, or officer of any association or corporation
who shall force or compel, directly or indirectly, or shall knowingly permit any laborer or
employee employed by him or by such firm or corporation, to be forced or compelled, to
purchase merchandise or commodities of any kind.
The same penalties are imposed upon any person who shall pay the wages due a laborer
or employee employed by him, by means of tokens or objects other than the legal tender
currency of the Philippines, unless expressly requested by the laborer or employee. (Art. 288,
RPC)
Other Relevant Provisions of RPC:

 Article 272. Slavery. - The penalty of prision mayor and a fine of not exceeding 10,000
pesos shall be imposed upon anyone who shall purchase, sell, kidnap or detain a human
being for the purpose of enslaving him. If the crime be committed for the purpose of
assigning the offended party to some immoral traffic, the penalty shall be imposed in its
maximum period.
 Article 273. Exploitation of child labor. - The penalty of prision correccional in its minimum
and medium periods and a fine not exceeding 500 pesos shall be imposed upon anyone
who, under the pretext of reimbursing himself of a debt incurred by an ascendant,
guardian or person entrusted with the custody of a minor, shall, against the latter's will,
retain him in his service.
 Article 274. Services rendered under compulsion in payment of debt. - The penalty
of arresto mayor in its maximum period to prision correccional in its minimum period
shall be imposed upon any person who, in order to require or enforce the payment of a
 debt, shall compel the debtor to work for him, against his will, as household servant or
farm laborer.
 Article 278. Exploitation of minors. - The penalty of prision correccional in its minimum
and medium periods and a fine not exceeding 500 pesos shall be imposed upon:
1. Any person who shall cause any boy or girl under sixteen years of age to perform any
dangerous feat of balancing, physical strength, or contortion.
2. Any person who, being an acrobat, gymnast, rope-walker, diver, wild-animal tamer or
circus manager or engaged in a similar calling, shall employ in exhibitions of these
kinds children under sixteen years of age who are not his children or descendants.
3. Any person engaged in any of the callings enumerated in the next paragraph
preceding who shall employ any descendant of his under twelve years of age in such
dangerous exhibitions.
4. Any ascendant, guardian, teacher or person entrusted in any capacity with the care of
a child under sixteen years of age, who shall deliver such child gratuitously to any
person following any of the callings enumerated in paragraph 2 hereof, or to any
habitual vagrant or beggar.
If the delivery shall have been made in consideration of any price, compensation, or
promise, the penalty shall in every case be imposed in its maximum period.
In either case, the guardian or curator convicted shall also be removed from office as
guardian or curator; and in the case of the parents of the child, they may be deprived,
temporarily or perpetually, in the discretion of the court, of their parental authority.
5. Any person who shall induce any child under sixteen years of age to abandon the
home of its ascendants, guardians, curators, or teachers to follow any person engaged
in any of the callings mentioned in paragraph 2 hereof, or to accompany any habitual
vagrant or beggar.
 Article 291. Revealing secrets with abuse of office. - The penalty of arresto mayor and a
fine not exceeding 500 pesos shall be imposed upon any manager, employee, or servant
who, in such capacity, shall learn the secrets of his principal or master and shall reveal
such secrets.
 Article 292. Revelation of industrial secrets. - The penalty of prision correccional in its
minimum and medium periods and a fine not exceeding 500 pesos shall be imposed upon
the person in charge, employee or workman of any manufacturing or industrial
establishment who, to the prejudice of the owner thereof, shall reveal the secrets of the
industry of the latter.
 Article 310. Qualified theft. - The crime of theft shall be punished by the penalties next
higher by two degrees than those respectively specified in the next preceding article, if
committed by a domestic servant, or with grave abuse of confidence, or if the property
stolen is motor vehicle, mail matter or large cattle or consists of coconuts taken from the
premises of the plantation or fish taken from a fishpond or fishery, or if property is taken
on the occasion of fire, earthquake, typhoon, volcanic erruption, or any other calamity,
 vehicular accident or civil disturbance. (As amended by R.A. 120 and B.P. Blg. 71. May 1,
1980).
Article 316. Other forms of swindling. - The penalty of arresto mayor in its minimum and
medium period and a fine of not less than the value of the damage caused and not more
than three times such value, shall be imposed upon: xxx 5. Any person who shall accept
any compensation given him under the belief that it was in payment of services
rendered or labor performed by him, when in fact he did not actually perform such
services or labor.
5. ENUMERATE RELEVANT CONSTITUTIONAL PROVISIONS.
Article 3 of the Labor Code reflects certain basic principles enshrined in the constitution aimed
at protecting the interest of labor, promoting full employment and equal work opportunities
irrespective of sex, race, or creed. Substantially, it was based on the provisions of Section 9,
Article II of the 1973 Constitution.
Section 3, Article XIII, 1987 Constitution:
“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.
It shall guarantee the rights of all 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 a 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
to investments, and to expansion and growth.”
Other Constitutional Provisions related to Labor Law:

a. “ 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.” (Section 9, Article II, 1987 Constitution)
b. “The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare.” (Section 18, Article II, 1987 Constitution)
c. “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.” (Section 8, Article III, 1987 Constitution)
d. “The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare.” (Section 18 [2], Article III [Bill of Rights], 1987
Constitution)
e. Section 5, Article VI [The Legislative Department] provides that along with other sectors,
labor is entitled to seats allotted to party-list representatives for three consecutive terms
after the ratification of the Constitution.
f. “No officer or employee of the civil service shall be removed or suspended except for
cause provided by law. (5) The right to self-organization shall not be denied to
government employees. (6) Temporary employees of the Government shall be given such
protection as may be provided by law.” (Section 2 [3], [5] and [6] of Article IX [B], 1987
Constitution).
g. “The Congress shall provide for the standardization of compensation of government
officials and employees, including those in government-owned or controlled corporations
with original charters, taking into account the nature of the responsibilities pertaining to,
and the qualifications required for, their positions.” (Section 5, Art. IX (B), 1987
Constitution)
h. “The goals of the national economy are a more equitable distribution of opportunities,
income, and wealth; a sustained increase in the amount of goods and services produced
by the nation for the benefit of the people; and an expanding productivity as the key to
raising the quality of life for all, especially the underprivileged.
“The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make full of
efficient use of human and natural resources, and which are competitive in both domestic
and foreign markets. However, the State shall protect Filipino enterprises against unfair
foreign competition and trade practices.
“In the pursuit of these goals, all sectors of the economy and all region s of the country
shall be given optimum opportunity to develop. Private enterprises, including
corporations, cooperatives, and similar collective organizations, shall be encouraged to
broaden the base of their ownership.” (Section 1, Article XII, 1987 Constitution)
i. “The State shall promote the preferential use of Filipino labor, domestic materials and
locally produced goods, and adopt measures that help make them competitive.” (Section
12, Article XII, 1987 Constitution)
j. “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.” (Section 14, Article XII, 1987 Constitution)
k. “The Congress shall give highest priority to the enactment of measures that protect and
enhance the right of all the people to human dignity, reduce social, economic, and
political inequalities, and remove cultural inequities by equitably diffusing wealth and
political power for the common good.” (Section 1, Article XIII, 1987 Constitution)
l. “The promotion of social justice shall include the commitment to create economic
opportunities based on freedom of initiative and self-reliance.”(Section 2, Article XIII,
1987 Constitution)
m. “Section 4. The State shall, by law, undertake an agrarian reform program founded on the
right of 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. To this end, the State shall encourage and undertake the just distribution of all
agricultural lands, subject to such priorities and reasonable retention limits as the
Congress may prescribe, taking into account ecological, developmental, or equity
considerations, and subject to the payment of just compensation.
“Section 5. The State shall recognize the right of farmers, farmworkers, and landowners,
as well as cooperatives, and other independent farmers' organizations to participate in
the planning, organization, and management of the program, and shall provide support
to agriculture through appropriate technology and research, and adequate financial,
production, marketing, and other support services.
“Section 6. 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, including lands of the public domain under lease or concession suitable
to agriculture, subject to prior rights, homestead rights of small settlers, and the rights of
indigenous communities to their ancestral lands. The State may resettle landless farmers
and farmworkers in its own agricultural estates which shall be distributed to them in the
manner provided by law.
“Section 7. The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of the communal marine and fishing resources, both
inland and offshore. It shall provide support to such fishermen through appropriate
technology and research, adequate financial, production, and marketing assistance, and
other services. The State shall also protect, develop, and conserve such resources. The
protection shall extend to offshore fishing grounds of subsistence fishermen against
foreign intrusion. Fishworkers shall receive a just share from their labor in the utilization
of marine and fishing resources.
“Section 8. The State shall provide incentives to landowners to invest the proceeds of the
agrarian reform program to promote industrialization, employment creation, and
privatization of public sector enterprises. Financial instruments used as payment for their
lands shall be honored as equity in enterprises of their choice.” (Sections 4, 5, 6, 7 & 8,
Article XIII, 1987 Constitution)
n. “The State shall, by law, and for the common good, undertake, in cooperation with the
private sector, a continuing program of urban land reform and housing which will make
 available at affordable cost, decent housing and basic services to under-privileged and
homeless citizens in urban centers and resettlement areas. It shall also promote adequate
employment opportunities to such citizens. In the implementation of such program the
State shall respect the rights of small property owners.” (Section 9, Article XIII, 1987
Constitution)
o. “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.” (Section 14, Article XIII, 1987 Constitution)
p. “The State shall, provide adult citizens, the disabled, and out-of-school youth with training
in civics, vocational efficiency, and other skills.” (Section 2 [5], Article XIV, 1987
Constitution)
q. “The State shall, from time to time, review to increase the pensions and other benefits
due to retirees of both the government and the private sectors.” (Section 8, Article XVI,
1987 Constitution)

6. WHAT ARE THE RULES IN THE INTERPRETATION OF THE PROVISIONS OF THE LC?

Article 4 enunciates the time-honored principle that all doubts in the implementation and
interpretation of its provisions should be resolved in favor of labor. This rule applies not only
in the interpretation of the provisions of the Labor Code but also of its Implementing Rules.'
It applies to all workers - whether in the government or in the private sector - in order to give
flesh and vigor to the pro-poor and pro-labor provisions of the Constitution. It is in keeping
with the constitutional mandate of promoting social justice and affording protection to labor.
Thus, when conflicting interests of labor and capital are to be weighed on the scales of social
justice, the heavier influence of the latter should be counterbalanced by sympathy and
compassion the law must accord the underprivileged worker.

The Labor Code is one of the rare laws which expressly mandate the appropriate rule of
interpreting or construing its provisions. This is one unique feature of the Labor Code. The
rules on legal hermeneutics applicable to most statutes are not followed. Consequently, from
the inception of a legal controversy or case, labor has already an upper hand over the
employer. Once the doubt is not effectively overturned by clear and convincing evidence
expected to be propounded by the employer who, in most cases, has the burden of proof,
the controversy should by clear directive of the law, be decided in favor of labor.

This is of course, is not a harsh rule. The framers of the law (Labor Code and the Civil Code)
had fully taken cognizance of the disparity in terms of resources and standing between
labor and capital in any legal controversy between them, the former always suffers the
most. Hence, the common adage that those who have less in life should have more in law is
best exemplified and made real in Articles 4 and 1702 of the Labor Code and Civil Code
respectively. The worker must look up to the law for his protection. The law regards him
 with tenderness and even favor and always with faith and hope in his capacity to help in
shaping the nation’s future. He must not be taken for granted.
7. EXPLAIN 1702 CC IN RELATION TO ART. 4 LC.
Both Article 1702 of the Civil Code and Article 4 of the Labor Code speak on the rule on
interpretation and construction of law and labor contracts.

Art 1702 of the Civil Code provides:

“Article 1702. In case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer. “

Article 4 of the Labor Code states:

“Article 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.”

Both articles above may be applied to doubts and ambiguities in

1. Labor contracts such as an employment contract or a CBA
2. Evidence presented in labor cases

This rule applies not only in the interpretation of the provisions of the Labor Code but also of its
Implementing Rules. It applies to all workers - whether in the government or in the private
sector- in order to give flesh and vigor to the pro-poor and pro-labor provisions of the
Constitution.

It is in ·keeping with the constitutional. mandate of promoting social justice and affording
protection to labor. Thus, when conflicting interests of labor and capital are to be weighed on
the scales of social justice, the heavier influence of the latter should be counter-balanced by
sympathy and compassion the law must accord the underprivileged worker.

Compared to the provision of Article 4 of the Labor Code, it appears that Article 1702 is
broader in scope in that it pertains to "all labor legislation and all labor contracts" and not
merely to the "implementation and interpretation of the provisions of the Labor Code,
including its implementing rules and regulations," as enunciated in Article 4. Moreover, the
Civil Code mentions a standard which would justify the invocation of the rule of
interpretation in favor of labor in that the same should be done "in favor of the safety and
decent living for the laborer."
8. WHAT IS THE RULE IN CASE OF DOUBT OR AMBIGUITY IN LABOR CONTRACTS; DOUBT
OR AMBIGUITY IN EVIDENCE?
DOUBT OR AMBIGUITY IN LABOR CONTRACTS.
In case of doubt or ambiguity, labor contracts should be interpreted liberally in favor of the
worker. Article 1702 of the Civil Code and Article 4 of the Labor Code should be applied in
resolving such. doubt or ambiguity in contracts between management and the union.
Contracts which are not ambiguous are to be interpreted according to their literal meaning
and not beyond their obvious intendment.5 In Colegio de San Juan de Letran - Calarnba v.
Villas/ the Supreme Court re-affrrmed the rule that the ambiguity in labor contracts should
be strictly construed against whoever is the author thereof.'

DOUBT OR AMBIGUITY IN EVIDENCE.

The rule emmciated in Article 4 of the Labor Code likewise applies in the appreciation of
evidence in labor proceedings. Consequently, when there is a doubt between the evidence
presented by the employer and the employee, such doubt should be resolved in favor of the
latter.1 Time and again, the Supreme Court has pronounced that "if doubt exists between
the evidence presented by the employer and the employee, the scales of justice must be
tilted in favor of the latter." The policy is to extend the doctrine to a greater number of
employees who can avail themselves of the benefits under the law, which is in consonance
with the avowed policy of the State to give maximum aid and protection to labor.

9. WHEN DOES ART. 4 LC NOT APPLY?

The provisions that in case of doubt in the interpretation of the provisions of the Labor
Code, the doubt should be resolved in favor of the laborer does not apply where the
pertinent provisions of the labor code leave no room for doubt either in the interpretation
or application.
* When there is no doubt and its stead, there is clear evidence that an employee is not an
asset to the management but a liability that delays production and sets a bad example to
his co-workers, the SC will not only concur in his dismissal but will insist in an order to that
effect.
*while no doubt, it must still protect the right of the employer to exercise whar are clearly
management prerogative.
*law imposes great burdens on the employer.
10. EXPLAIN THE NATURE AND LIMITATION OF THE RULE MAKING POWER OF DOLE.
a. Power to promulgate implementing rules and regulations
-Administrative bodies like the DOLE are granted under the law the power and
authority to issue administrative rules, regulations and policies to implement and
interpret the law which they are entrusted to enforce. It is an elementary rule in
administrative law that such administrative rules, regulations and policies have the force
and effect of law and are entitled to great respect.
  Venture of powers to administrative bodies is not unconstitutional, unreasonable
and oppressive but has been necessitated by the growing complexity of modern
society to help in the regulations of society’s ramified activities.

b. Implementing rules and regulations must not conflict with law.

1. It is a basic legal tenet that the rules and regulations issued by administrative bodies
should not be in conflict with or contrary to the provisions of the law they seek to
implement or enforces.
2. The grant of authority to the DOLE & other gov’t agencies charged with the
administration and enforcement of the LC or any of it’s parts, to promulgate the
necessary implementing rules and regulation, is not unlimited.
3. The Sec of Labor and Employment has no legal power to amend or alter in any
material sense whatever the law (LC) itself unequivocally specifies or fixes.
The rule making power should be confined to details for regulating the mode or
proceeding to carry into effect the law and it has been enacted. The power cannot be
extended to amending or expanding the statutory requirements or to embrace matters
not covered by the statute. Rules that subvert the statute cannot be sanctioned.
11. WHAT IS THE APPLICABILITY OF THE LC; WHO ARE EXCLUDED?

EXCEPTED WORKERS.

The Labor Code has, in certain specified cases, excepted certain groups of workers from the
application of the rights and benefits provided therein, such as the following:

1. Article 82, Title I, Book III, which excludes the following workers from the coverage of the
provisions on working conditions and rest periods, more specifically on normal hours of work,
meal periods, night shift differential, overtime work, weekly rest periods, holidays, service
incentive leaves and service charges:

a. Government employees;

b. Managerial employees;

c. Field personnel;

d. Members of the family of the employer who are dependent on him for support;

e. Domestic helpers;

f. Persons in the personal service of another; and

g. Workers who are paid by results, as determined by the Secretary of Labor in appropriate
regulations.
 2. Article 98, Title 11, Book III, which excludes the following workers from the coverage of the
provisions on wages:

a. Farm tenancy or leasehold;

b. Domestic service; and

c. Persons working in their respective homes in needle work or in any cottage industry duly
registered in accordance with law.

3. Article 255 [245], Title V, Book V, which provides for the ineligibility of managerial
employees to join, assist or form any labor organization.

4. Article 302 [287], Title 11, Book VI, which excepts from the coverage of the retirement
pay benefit, employees of retail, service and agricultural establishments or operations
employing not more than ten (10) employees or workers.
12. WHAT ARE THE 4 TEST OF EMPLOYER-EMPLOYEE RELATIONSHIP, EXPLAIN EACH.
To ascertain the existence of an employer-employee relationship[,] jurisprudence has invariably
adhered to the four-fold test, to wit:
1) the selection and engagement of the employee;
The employer must generate a prioritized list of job requirements including special
qualifications, characteristics, and experience wanted from a candidate. power to select
and engage, the circumstance likewise rendered concomitant the power of the
employer to dismiss.

2) the payment of wages;

"Wage" paid to any employee shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained on
a time, task, piece, 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 the fair and reasonable value, as determined by the Secretary of Labor,

3) (3) the power of dismissal; -It Must be done for authorized or just causes only. An
employer shall observe procedural due process before terminating one’s employment.

4) the power to control the employee's conduct, or the so-called "control test."
 The employer reserves the right to control not only the end achieved but also the manner
and means used to achieve that end.
13. EXPLAIN THE TWO TIERED TEST OF EMPLOYER-EMPLOYEE RELATIONSHIP.
While the control test may be the most important index to determine the existence of the
employer-employee relationship, however, in certain cases, the control test is not sufficient to
give a complete picture of the relationship between the parties.
Thus, the Supreme Court in Francisco v. NLRC, enunciated that the better approach
would, therefore, be to adopt a two-tiered test involving:

1. Control Test – It is the putative employer’s power to control the employee with
respect to the means and methods by which the work is to be accomplished
2. Economic Reality Test – It is the underlying economic realities of the activity or
relationship. Here, the proper standard of economic dependence is whether the
worker is dependent on the alleged employer for his continued employment in that
line of business.

This is especially appropriate in cases where there is no written agreement or terms of

reference to base the relationship on and due to the complexity of the relationship based on
the various positions and responsibilities given to the worker over the period of the latter’s
employment.
Thus, the determination of the relationship between the employer and the employee
depends upon the circumstances of the whole economic activity
14. ENUMERATE THE INSTANCES WHEN EMPLOYER-EMPLOYEE EXISTS.
Employment relationship exists in the following cases:

1. Carpenters and maintenance personnel – a person who is engaged in maintenance

and repair jobs and perform carpentry, plumbing, electrical and masonry work for
apartments and residential buildings owned by the employer.
2. Dispatchers of a transportation company – as between the operator of a
transportation company and the dispatches hired by one of his employees
3. Janitors – following the right of control test, the fact that the person in charge of the
school supervised the janitor in his work and had control over the method and
manner by which he performed his job
4. Messengers – the messengers who were supplied by a service agency and who were
required to work in the premises of the agency’s client and were paid their salaries
through the service agency are employees of said client. The client company
controlled the performance of the duties of the messenger.
 5. Security guards – security guards by the security agency to its client company are
the employees of said agency.
6. Professors and instructors – professors and instructors are not independent
contractors but are employees in that their work is controlled by their employer –
the university.
7. Jeepney drivers and conductors – under the “boundary system” the relationship
between the driver and conductor of a bus and the owner thereof is not that of a
lessee and lessor but that of employee and employer. The management of the
business is in the owner’s hands.
8. Taxi drivers – same as #7
9. Auto-calesa driver and bus driver – same as #7
10. Musicians – musicians who were employed by a company producing motion
pictures for purposes of making music recordings, without which the motion picture
is not complete, are employees.
11. Fishermen – fishermen-crew who rendered services in various capacities aboard the
fishing vessels of a company and whose compensation was paid in cash on percent
commission basis, are employees following the right of control test.
12. Stevedores – although supplied to the company by the labor organization, are
employees of the company
13. Lawyers, doctors, nurses, dentists, public relations practitioners and other
professionals – a lawyer may very well be an employee of a private corporation or
even of the government. A similar arrangement may exist as to doctors, nurses,
dentists, public relations practitioners, and other professionals
14. Resident physicians – there is employer-employee relationship between resident
physicians and the training hospitals unless:
a. There is a training agreement between them; and
b. The training program is duly accredited or approved by the appropriate
government agency
15. Employees of cooperatives – as long as the four elements of employer-employee
relationship are present (i.e. they work under the supervision of the cooperative
manager and worked on regular working hours)
16. Insurance agent – an insurance agent is an employee of the insurance company
15. ENUMERATE THE INSTANCES WHEN EMPLOYER-EMPLOYEE DOES NOT EXIST.
Employment relationship does not exist in the following cases:
1. Commission salesman
2. Contract of agency
3. Working scholars
 4. Medical consultants and visiting physicians
5. Independent contractors or their employees
6. Persons rendering caddying services to club members
16. ENUMERATE THE INSTANCES WHEN EMPLOYER-EMPLOYEE IS SUSPENDED.

1. In case of preventive suspension – where an employee is undergoing an administrative

investigation for an offense and his presence in the company premises poses serious or
imminent threat to the life or property of the employer or of his co-employees

2. In case of imposition of suspension as a form of disciplinary penalty – on an employee

who is found guilty of committing a wrongful act under Article 282 of the Labor Code or
under the Company Rules and Regulations

3. During off-season in case of regular seasonal employment – such that during off-season,
they are temporarily laid off but they are re-employed during the season or when their
services may be needed

4. Under the following circumstances in Article 286 of the Labor Code:

a. Bona fide suspension by the employer of the operation of his business or

undertaking for a period not exceeding six (6) months;
b. Fulfillment by the employee of a military duty; or
c. Fulfillment by the employee of a civic duty
17. WHEN DOES THE TERMINATION OF EMPLOYMENT OCCUR?
Termination of Employment by the Employer
A. Just Cause
1. Serious misconduct or willful disobedience by the employee (Ee) of the lawful orders
of his employer (Er) or representative in connection with his work
2. Gross and habitual neglect by the Ee of his duties
3. Fraud or willful breach by the Ee of the trust reposed in him by his Er or duly organized
representative
4. Commission of a crime or offense by the Ee against the person of his Er or any
immediate member of his family or his duly authorized representative.
5. Other causes analogous to the foregoing

B. Authorized Causes

1. Installation of labor‐saving devices (automation/robotics)

 2. Redundancy (superfluity in the performance of a particular work) – exists where the
services of an employee (Ee) are in excess of what is reasonably demanded by the
actual req’ts of the enterprise.
Note: The redundancy should not have been created by the Er.
3. Reorganization
Note: An Er is not precluded from adopting a new policy conducive to a more
economical and effective management, and the law does not require that the Er should
be suffering financial losses before he can terminate the services of the employee on
the ground of redundancy
4. Retrenchment – cutting of expenses and includes the reduction of personnel; It is a
management prerogative, a means to protect and preserve the Er’s viability and ensure
his survival. To be an authorized cause it must be affected in good faith (GF) and for
the retrenchment, which is after all a drastic recourse with serious consequences for
the livelihood of the Ee’s or otherwise laid‐off.

Note: The phrase “to prevent losses” means that retrenchment or termination from
the service of some Ees is authorized to be undertaken by the Er sometime before the
anticipated losses are actually sustained or realized. Evidently, actual losses need not
set in prior to retrenchment.
5. Closing or cessation of operation of the establishment or undertaking – must be done
in good faith and not for the purpose of circumventing pertinent labor laws.
6. Disease – must be incurable within 6 months and the continued employment is
prohibited by law or prejudicial to his health as well as to the health of his co‐Ees with
a certification from the public health officer that the disease is incurable within 6
months despite due to medication and treatment

Termination by the Employee

 Resignation
General rule: Written notice to resign submitted one (1) month in advance
Exception: No notice required for any of the following:
(1) Serious insult by the employer or his representative on the honor and
person of the employee;
(2) Inhuman and unbearable treatment accorded the employee by the employer or his
representative;
(3) Commission of a crime or offense by the employer or his representative against the
person of the employee or any of the immediate members of his family; and
(4) Other causes analogous to any of the foregoing.
18. WHAT ARE THE 3 ELEMENTS OF RECRUITMENT & PLACEMENT OF WORKERS?
Elements of illegal recruitment:
a. First element: Recruitment and placement activities.
 Any act of CETCHUP (canvassing, enlisting, contracting, transporting, utilizing, hiring, or
procuring workers) and includes CRAP (referring, contract services, promising or
advertising for employment abroad), whether for profit or not, when undertaken by a
non-licensee or non-holder of authority: Provided, That any such non-licensee or non-
holder who, in any manner, offers or promises for a fee employment abroad to two or
more persons shall be deemed as engaged in such act.
b. Second element: Non-licensee or non-holder of authority - means any person,
corporation or entity which has not been issued a valid license or authority to engage in
recruitment and placement by the Secretary of Labor and Employment, or whose
license or authority has been suspended, revoked or canceled by the POEA or the
Secretary of Labor and Employment.
19. WHAT ARE THE DISTINCTIONS BETWEEN PEA & PRE.

As defined in Article 13 of the Labor Code, a private employment agency technically may be
distinguished from a private recruitment entity as follows:

1. A PEA has a right duly recognized in law to charge a fee, directly or indirectly, from the
workers or the employers or from both; while a PRE does not charge any fee either directly
or indirectly from the workers or employers to which they would be deployed;

2. PEA is authorized to recruit only for overseas placement or deployment; while PRE is
allowed to recruit for both local and overseas deployment.

3. PEA derives its authority to recruit and place workers from a document denominated as a
“license”; while PRE sources its authority from a document called “authority.”

[Page 69, Law on Labor Standards and Social Legislation Annotated, Chan.]
20. WHAT DOES OFW IN DISTRESS MEAN; DISTINGUISH BETWEEN DOCUMENTED AND
UNDOCUMENTED WORKERS; WHAT IS PESO (RA 8759).

Regular/Documented Filipino migrant workers.

The term "Regular/Documented Filipino migrant workers" is mentioned once in RA. No.
10022 but it was not defined therein. The 2010 Omnibus Rules and Regulations define it as
referring to the following:

(1) Those who possess valid passports and appropriate visas or permits to stay and work in
the receiving country; and

(2) Those whose contracts of employment have been processed by the POEA, or
subsequently verified and registered on-site by the POLO, if required by law or regulation.

Irregular/Undocumented Filipino migrant workers.

The term "Irregular/Undocumented Filipino migrant workers" is also mentioned only once in
R.A. No. 10022 but it was not defined therein. The 2010 Omnibus Rules and Regulations
define it as referring to the following:

(1) Those who acquire their passports through fraud or misrepresentation;

(2) Those who possess expired visas or permits to stay;

(3) Those who have no travel document whatsoever;

(4) Those who have valid but inappropriate visas; or

(5) Those whose employment contracts were not processed by the POEA or subsequently
verified and registered on-site by the POLO, if required by law or regulation.

SOURCE: Labor Law and Social Legislation Volume 1, Joselito G. Chan (2019 Edition), page
63.
21. IS THE NATIONALITY OF THE EMPLOYER MATERIAL, WHY? EXPLAIN THE RULES ON
REPATRIATION OF OFWS.
Foreign employer shall assume joint and solidary liability with the local employer for all
claims and liabilities which may arise in connection with the implementation of contract,
including but not limitied to payment of wages, death and disability compensation and
repatriation. the purpose of solidary liability is to assure aggrieved workers of immediate
and sufficient payment of what is due to them (Osm Shipping Inc. v. Nlrc)
22. WHAT ARE THE 4 REQUISITES OF SEC. 4 RA 8042 BEFORE OFWS CAN BE DEPLOYED?
1. SEC. 4. Deployment of Migrant Workers – The State shall deploy overseas Filipino
workers only in countries where the rights of Filipino migrant workers are protected.
The government recognizes any of the following as guarantee on the part of the
receiving country for the protection and the rights of overseas Filipino workers:

(a) It has existing labor and social laws protecting the rights of migrant workers;

(b) It is a signatory to multilateral conventions, declaration or resolutions relating to the

protection of migrant workers;

(c) It has concluded a bilateral agreement or arrangement with the government

protecting the rights of overseas Filipino workers; and

(d) It is taking positive, concrete measures to protect the rights of migrant workers.
 23. WHAT IS THE NATURE OF EMPLOYMENT OF OFWS?
a. OFW’s can never acquire regular employment
- OFW’s are contractual, NOT REGULAR
Related cases:
1. Brent School Inc. v Zamora (G. R. No. 48494, February 5, 1990, 181 SCRA 702)
- Seamen (now Seafarers) and overseas contract workers are NOT COVERED by the
term “regular employment” as defined in Article 280 of the Labor Code;

2. Coyoca v. NLRC (G. R. No. 113658, March 31, 1995, 240 SCRA 190, 194)
- Employment of Filipino Seamen is governed by the Rules and Regulations of the POEA.
The Standard Employment Contract governing the Employment of All Filipino Seamen
on Board Ocean-Going Vessels of the POEA, particularly Part 1, Sec. C which provides
that contract of Seamen shall be for a fixed period, shall not be longer than twelve
(12) months;

3. Millares v. NLRC (G. R. No. 110524, July 29, 2002, 385 SCRA 306)
- OFW’s cannot acquire regular employment, the fact that employment of seafarers is
governed by the contracts they sign everytime they are re-hired and their
employment is terminated when the contract expires;
- Employment is fixed for a certain period of time;
- They fall under the exception of Art. 280 whose employment has been fixed for a
specific project or undertaking the completion or termination of which has been
determined at the time of engagement of the employee or where the work or service
to be performed is seasonal in the nature and the employment is for the duration of
the season.
-
b. Indefinite Period of Employment of OFW’s held NOT VALID
Pentagon international Shipping, Inc. v Adelantar (G. R. No. 157373, July 27, 2004)
- Even if the employment contract of an OFW provides for an unlimited period, it is not
valid as it contravenes the explicit provision of the POEA Rules and Regulations on
fixed-period employment
-
c. OFW’s do not become regular employees by reason of nature of work
An OFW cannot be considered a regular employee by reason of the fact that the work
he performs is usually necessary and desirable in the usual business or trade of the employer.
1. Millares v. NLRC (G. R. No. 110524, July 29, 2002, 385 SCRA 306)
 4. Petitioners Claim: they be considered as regular employees since they are performing
useful and desirable works and that they have rendered 20 years of service; in Brent
School Inc. v Zamora (G. R. No. 48494, February 5, 1990, 181 SCRA 702) Ruling, there are
certain forms of employment which also require the performance of usual and desirable
functions and which exceed one year but do not necessarily attain regular employment
status; OFWs and seafarers fall under this type of employment which are governed by
mutual agreement of the parties.

d. Regular employment does not result from the series of re-hiring of OFWs
- Gu-Miro v. Adorable (G. R. No. 160952, August 20, 2004); continued re-hiring by the
company of the OFW to serve as Radio Officer on board the employer’s different vessels
should be interpreted not as a basis of regularization but rather as a series of contract
renewals.
e. Unique cases where OFWs were declared regular employees
ATCI Overseas Corp. v CA (G. R. No. 143949, August 9, 2001); OFWs may attain regularity
of employment. Here the Filipino doctors were hired by the Ministry of public health of
Kuwait for a period of two years but were summarily terminated after 2 months on the
ground that they are physically unfit for the job. After seven months they had ceased to
work, they were repatriated to the Philippines. They claimed that they are probationary
employees at the time of their termination. Supreme Court said they are regular
employees because of the following reasons:

1. there is nothing in the record that shows and proves that they are probationary
employees at the time they were dismissed from employment;
2. there is no stipulation included in the employment contract and Memorandum of
Understanding of the petitioner and the Ministry providing for a probationary period;
3. there’s no finding of probationary employment in the decisions of POEA, NLRC and
CA;
4. petitioners were not apprised of the fact that they were to be placed on a
probationary period;
(this decision was reversed: OFWs can never become regular employees as their
engagement is required under the law to be on a fixed-term basis, Millares v. NLRC GR
No. 110524)
F . The fixed –period employment of OFWs not discriminatory
- not discriminatory against them nor does it favor foreign employers (particularly
seafarers); seafarers nature of employment are peculiar and unique, they cannot stay
for a long and indefinite period of time at sea; national, cultural and lingual diversity
necessitates the limitation of its period.
g. The expiration of employment contracts of OFWs marks its ending
- since OFWs are not regular employees, their employment ceases upon the expiration
of their employment contracts
h. Effect of hiring of seamen for overseas employment but assigning him to local vessel
- The non-deployment of the ship overseas does not affect the validity of the perfected
employment contract (OSM Shipping Philippines Inc. v NLRC GR No. 138193, March 5,
2013);
i. Effect on the status of a seaman hired for overseas deployment but later assigned to domestic
operations after the expiration of his overseas contract
- the employee is considered now as a domestic employee (his overseas employment is
automatically terminated upon expiration of his overseas employment contract) Delos
Santos v, jebsen Maritime, Inc. GR No. 154185
24. WHAT ARE THE RULES IN TERMINATION OF OFWS.
a. OFWs deserve to be protected by our laws
Most OFWS come from the poorest sector of the society, they are hardly illiterate and of
ill-health.
- Their unfortunate circumstance makes them easy prey to avaricious employers. They
will climb mountains, cross the seas, endure slave treatment in foreign lands just to
survive. They will work under sub-human conditions and accept salaries below the
minimum
- No one should be made to unjustly profit from their sufferings
b. The due process mandated under Philippine Law applies to dismissal of OFWs
- In the absence of proof of the applicable laws of the foreign employer, Labor Code
Provisions will govern the termination of employment of OFWs;
- As vital component of due process, twin requirement of Notice and hearing should
strictly be effected;
c. Award of Indemnity in the form of Nominal Damages in case of dismissal of OFWs for just
authorized cause but without due process
25. EXPLAIN THE AGABON DOCTRINE.
- The Agabon v. NLRC Case: the dismissal for a just cause but without due process is not
illegal or ineffectual, but legal; however, the employer SHOULD INDEMNIFY THE EMPLOYEE
WITH NOMINAL DAMAGES FOR NON-COMPLIANCE WITH STATUTORY DUE PROCESS.
26. WHAT ARE THE MONETARY AWARDS TO OFWS?
a) The reliefs under Art. 279 of the Labor Code are not available to OFWs.
- Any and all claims arising from the employment of OFWs, including those for death or
illness compensations, are not rooted from the provisions of the Labor Code.
- It is Section 10 of RA No. 8042 (Migrant Workers and Overseas Filipinos Act of 1995)
and not Art. 279 of the Labor Code, which is appropriate legal basis for such claims.
- The remedies provided for under Art. 279 such as reinstatement or separation pay in
lieu of reinstatement or full backwages, are not available to OFWs. This is as it should
be since OFWs are contractual employees whose rights and obligations are governed
primarily by the POEA Standard Employment Contract (POEA-SEC), the Rules and
Regulations Governing Overseas Employment and more importantly, by said RA no.
8042.
b) A validly dismissed OFW is not entitled to his salary for the unexpired portion of his
employment contract.
- However, if he is dismissed without observance of procedural due process, he is
entitled to an indemnity I the form of nominal damages.
c) How to reckon the monetary awards to OFWs illegally dismissed prior to the effectivity
of RA 8042
- Effectivity of RA 8042 is on August 25, 1995 and approved on June 7, 1995
- Entitled to the payment of their salaries corresponding to the unexpired portion of
their fix-term contract even without the qualification now found in Section 10 of said
law.
d) Qualification in par.5, Section 10 of RA 8042 declared unconstitutional (Serrano
Doctrine)
- In case of termination of overseas employment without just, valid or authorized cause
as defined by law or contract, the workers shall be entitled to the full reimbursement
of his placement fee with interest of twelve percent (12%) per annum, plus his salaries
for the unexpired portion of his employment contract or for three (3) months for every
year of the unexpired term, whichever is less.
- The subject clause “or for three (3) months for every year of the unexpired term,
whichever is less” is declared unconstitutional for being discriminatory, among other
significant reasons cited therein. Consequent to this ruling, illegally dismissed OFWs
are now entitled to all the salaries for the entire unexpired portion of their
employment contracts, irrespective of the stipulated term or duration thereof. (In
other words, the SC reverted to the old rule prior to effectivity of RA No. 8042)
- The SC ruled concluded that the subject clause contains a suspect classification in that,
in the computation of the monetary benefits of fixed term employees who are illegally
discharged, it imposes a 3-month cap on the claim of OFWs with an unexpired portion
of one year or more in their contracts, but none on the claims of OFWs or local
workers with fixed-term employment. The subject clause singles out one
classification of OFWs and burdens it with a peculiar disadvantage.
e) Monetary award to OFW is not in the nature of separation pay or backwages but a form
of indemnity
- The award of salaries for the unexpired portion of an OFW’s employment contract is
not an award of backwages or separation pay but a form of indemnity for the OFW
who was illegally dismissed.
f) Only salaries are to be included in the computation of the amount due for the unexpired
portion of the contracts
- Allowances are excluded. There is no basis in including the OFW’s living allowance as
part of the three months salary to which he is entitled under Section 10 of RA 8042.
- There is likewise no basis to include overtime, holiday and leave pay in the said
computation.
g) Entitlement to overtime pay of OFW
- The criterion in determining whether or not sailors are entitled to overtime pay is not
whether they are on board and cannot leave ship beyond regular 8 working hours a day
but whether they actually rendered service in excess of said number of hours.
h) Reimbursement of placement fee included in the monetary award to an OFW
- An illegally dismissed OFW is entitled to the full reimbursement of the of his
placement fee with 12% interest per annum.
i) Costs of repatriation and transport of personal belongings should be included in the
monetary award to an illegally dismissed OFW
- Under Section 15 of RA 8042, the repatriation of OFW and the transport of his
personal belongings are the primary responsibilities of the agency which recruited or
deployed him. All the costs attendant thereto should be borne by the agency
concerned and/or its principal.
j) Right to recover cost of repatriation from OFW’s wages
- The right of the employer to recover cost of repatriation from the OFW’s wages an
earnings hinges on whether the OFW was legally dismissed or not. The right exists if
OFW is validly discharged for disciplinary measures.
k) Effect of Unauthorized substitution or alteration of POEA-approved employment
contract
- RA 8042 explicitly prohibits the substitution or alteration to the prejudice of the
worker, of employment contracts already approved and verified by the POEA from
the time of the actual signing thereof by the parties up to and including the period of
their expiration without the approval of the POEA.
27. DISTINGUISH INDEMNITY FOR OFWS FROM SEPARATION PAY OR BACKWAGES.

A seafarer is not a regular employee as defined in Article 280 of the Labor Code. Hence, he is
not entitled to full backwages and separation pay in lieu of reinstatement as provided in
Article 279 of the Labor Code. Seafarers are contractual employees whose rights and
obligations are governed primarily by the POEA Standard Employment Contract for Filipino
Seamen, the Rules and Regulations Governing Overseas Employment, and, more importantly,
by Republic Act (R.A.) No. 8042, or the Migrant Workers and Overseas Filipinos Act of
1995. While the POEA Standard Employment Contract for Filipino Seamen and the Rules and
Regulations Governing Overseas Employment do not provide for the award of separation or
termination pay, Section 10 of R.A. 8042 provides for the award of money claims in cases of
illegal dismissals.

The award of salaries for the unexpired portion of his employment contract or for three (3)
months for every year of the unexpired term, whichever is less, is not an award of
backwages or separation pay, but a form of indemnity for the worker who was illegally
dismissed. The Labor Arbiter may have mislabeled it as separation pay, nonetheless, the
award was made in conformity with law.
28. ARE ILLEGALLY DISMISSED OFWS ENTITLE TO DAMAGES & ATTORNEY’S FEES, EXPLAIN.

A. Entitlement of OFWs to Actual Damages

In the 2007 case of Santiago v. CF Sharp Crew Management, Inc., [G.R. No. 162419, July
10, 2007], the High Court ruled that the respondent which failed to deploy the petitioner
overseas after a POEA-approved employment contract was signed by them, is liable to the
latter for actual damages. Respondent’s act of preventing petitioner from departing the port
of Manila and boarding “MSV Seaspread” constitutes a breach of contract, giving rise to
petitioner’s cause of action. Respondent unilaterally and unreasonably reneged on its
obligation to deploy petitioner and must, therefore, answer for the actual damages he
suffered. Article 2199 of the Civil Code provides that one is entitled to an adequate
compensation only for such pecuniary loss suffered by him as he has duly proved. Respondent
is thus liable to pay petitioner actual damages in the form of the loss of nine (9) months’
worth of salary as provided in the contract.

B. Entitlement of OFWs to Moral and Exemplary Damages and Attorney’s Fees

In the 2005 case of Athenna International Manpower Services, Inc. v. Villanos [G.R. No.
151303, April 15, 2005], the High Tribunal ruled that because of the breach of contract and
bad faith alleged against the employer and the petitioner recruitment agency, the award of
P50,000.00 in moral damages and P50,000.00 as exemplary damages, in addition to
attorney’s fees of ten percent (10%) of the aggregate monetary awards, must be sustained.
These were also the amounts awarded by way of moral and exemplary damages and
attorney’s fees in the case of Oriental Shipmanagement Co., Inc. v. Hon. CA, [G.R. No. 153750,
January 25, 2006].

Also, in the case of ATCI Overseas Corporation v. CA, [G.R. No. 143949, August 9, 2001,
414 Phil. 883, 893], the award of attorney’s fees equivalent to ten percent (10%) of the total
award was held legally and morally justified as the OFWs were compelled to litigate and thus
incur expenses to protect their rights and interest.

However, in Acuña v. Hon. CA, [G.R. No. 159832, May 5, 2006], petitioners alleged that
they suffered humiliation, sleepless nights and mental anguish, thinking how they would pay
 the money they borrowed for their placement fees. The Supreme Court, however, did not
consider this allegation sufficient to merit the award of moral damages, absent any evidence
to prove bad faith, fraud or ill motive on the part of private respondents. Consequently,
without the award of moral damages, there can be no award of exemplary damages, nor
attorney’s fees.

29. WHAT IS THE BASIS OF COMPUTATION OF DEATH BENEFITS OF OFW?

The basis of computation of death benefits of OFW generally, is whichever is greater
between Philippine law and foreign law.
30. WHAT DOES “DURING THE TERM” MEAN?
Means that during the effectivity of his employment contract.
31. EXPLAIN THE RULES ON THE EXISTENCE OF DEGREE OF SEAFARER’S DISABILITY ON HOW
DETERMINED AND DECLARED?

1. Disability should be understood on the basis of loss of earning capacity and not on its
medical signifance.
Certification by a company-designated physician; accreditation with POEA not necessary.
2. Findings of company-designated physician, not conclusive.
3. OFW should present controverting evidence.
4. Right of OFW to seek a second opinion from physicians other than company-designated
physician.
In case of conflict opinions, that which is favorable to the OFW should be adopted.[PAGE
119-121 OF THE ANNOTATED BOOK LETTER H]
32. WHAT IS THE RULE IN COMPUTING AWARD IN FOREIGN CURRENCY?

In case the salary of an illegally dismissed employee is in foreign currency (say, US Dollars) as
in the case of OFWs, the monetary award equivalent to the salary for the unexpired portion
should be paid at its prevailing peso equivalent at the time of payment in accordance with
Republic Act No. 8183 which provides in its Section 1 that “[a]ll monetary obligations shall be
settled in the Philippine currency which is legal tender in the Philippines. However, the
parties may agree that the obligation or transaction shall be settled in any other currency at
the time of payment.” (Republic Act No. 8183 entitled “An Act Repealing Republic Act
Numbered Five Hundred Twenty-Nine Entitled ‘An Act to Assure the Uniform Value of
Philippine Coin and Currency’”; Asia World Recruitment, Inc. vs. NLRC, G. R. No. 113363, Aug.
24, 1999).
33. WHAT ARE THE SERVICES PROVIDED BY FILIPINOS RESOURCE CENTERS?
Pursuant to Sections 19 and 23 of the Migrant Workers and Overseas Filipinos Act of 1995, a
Migrant Workers and Overseas Filipinos Resource Center (Filipinos Resource Center) shall be
established in countries where there are at least 20,000 migrant workers. Where feasible it shall
be established within the premises of the Embassy.

When the Filipinos Resource Center is established out side the premises of the Embassy, the
Department of Foreign Affairs shall exert its best effort to secure appropriate accreditation from
the host government in accordance with applicable laws and practices.
Services
The Filipinos Resource Center shall provide the following services:

a. Counseling and legal services;

b. Welfare assistance including the procurement of medical and hospitalization services;
c. Information, advisory programs to promote social integration such as post-arrival
orientation, settlement and community networking services and activities for social
interaction;
d. Registration of undocumented workers to bring them within the purview of the Act;
e. Implementation of the Voluntary Membership Program of OWWA;
f. Human resource development, such as training and skills upgrading;
g. Gender-sensitive programs and activities to assist particular needs of migrant workers;
h. Orientation program for returning workers and other migrants;
i. Monitoring of daily situation, circumstances and activities affecting migrant workers and
other overseas Filipinos;
j. Seeing to it that labor and social welfare laws in the host country are fairly applied to
migrant workers and other overseas Filipinos, and
k. Conciliation of disputes arising from employer-employee relationship.

34. WHAT ARE THE FUNDS ESTABLISHED FOR OFWS?

RA 8042 has established the following funds for availment by migrant and overseas Filipinos:

1. Migrant Workers Loan Guatantee Fund

2. Emergency Repatriation Fund

3. Legal Assistance Fund

4. Congressional Migrant Workers Scholarship Fund

35. EXPLAIN THE MANDATORY OBLIGATION TO REMIT FOREIGN EXCHANGE EARNINGS.

Article 22 of Presidential Decree No 442, Labor Code

ART. 22. Mandatory remittance of foreign exchange earnings. - It shall be mandatory for all
Filipino workers abroad to remit a portion of their foreign exchange earnings to their families,
dependents, and/or beneficiaries in the country in accordance with rules and regulations
prescribed by the Secretary of Labor.
It is thus mandatory for a worker or seaman to remit regularly a portion of his foreign exchange
earnings abroad to his beneficiary through the Philippine banking system. The obligation to
remit is required to be stipulated in the following documents:

1. Contract of employment and/or service between a foreign-based employer and a

worker;
2. Affidavit of undertaking whereby a worker obligates himself to remit a portion of his
earnings to his beneficiaries;
3. Application for a license or authority to recruit workers;
4. Recruitment agreement and/or service contract between a licensed agency or authority
holder and its foreign employer or principal; and
5. Application for accreditation of a principal or project (Section 2, Rule XIII, Book I, Rules
to Implement the Labor Code)

Amount of Foreign Exchange Remittances

The percentage of foreign remittance shall be as follows:

1. Seamen and mariners: Eighty percent (80%) of the basic salary

2. Workers of Filipino contractors and construction companies: Seventy percent (70%) of
the basic salary;
3. Doctors, engineers, teachers, nurses, and other professional workers whose
employment contracts provide for free board and lodging facilities; Seventy percent
(70%) of the basic salary;
4. All other professionals whose employment contracts do not provide free board and
lodging facilities: Fifty percent (50%) of the basic salary;
5. Domestic and other service workers: Fifty percent (50%) of the basic salary;
6. All other workers not falling under the afore-mentioned categories: Fifty percent
(50%)of the basic salary. (Section 2, Executive Order No. 857)

Performing artists overseas are required to remit at least fifty percent (50%) of their
monthly salary to the Philippines. (Section B [7], DOLE Order No. 35, Series of 1994)

36. WHAT ARE THE EMPLOYMENT STANDARDS FOR LAND-BASED OFWS; SEAFARERS?

EMPLOYMENT STANDARDS FOR LAND BASED OVERSEAS WORKERS (pg 193)

a. Employment Standards

POEA shall determine, formulate, and review employment standards in

accordance with the market development thrusts and welfare objectives
of the overseas employment program and the prevailing market
conditions.

b. Minimum provisions of employment Contract (pg 196)

 i. Guaranteed wages for regular works hours and overtime
pay, as appropriate, which shall not be lower than the prescribed
minimum wage in the host country, not lower than the appropriate
minimum wage standard set forth in a bilateral agreement or
international convention duly ratified by the host country and the
Philippines or not lower than the minimum wage in the Philippines,
whichever is highest;

ii. Free transportation to and from the worksite, or

offsetting benefit;

iii. Free food and accommodation, or offsetting benefit;

iv. Just/ authorized causes for termination of the contract

or of the services of the workers taking into consideration the
customs, traditions, norms, mores, practices, company policies and
the labor laws and social legislations of the host country;

v. The Administration (POEA) may also consider the

following as basis for other provisions of the contract:

● Existing labor and social laws of the host country

● Relevant agreements, conventions, delegations, or
resolutions
● Relevant bilateral and multilateral agreements or
arrangements with the host country
● Prevailing conditions/ realities in the market

c. Freedom to Stipulate

Parties to overseas employment contracts are allowed to stipulate other

terms and conditions and other benefits not provided under these
minimum terms, provided:

● The employment package should be more beneficial

to the worker than the minimum
● The agreement shall not be contrary to law, public
policy and morals
● The Philippine agencies shall make foreign
employees aware of the standards of employment
adopted by the Administration (POEA)

d. Disclosure of terms and conditions of employment

 Agency and worker shall fully disclose all relevant information in relation
to the recruitment and employment of the worker in accordance with the
guidelines set by the Administration (POEA)

37. EXPLAIN THE VALIDITY OF POEA – SEC.

VALIDITY OF POEA STANDARD EMPLOYMENT CONTRACTS (POEA-SEC)
a. Validity of standard form contracts
b. Invalidity of contract diminishing salary
c. Interpretation of overseas employment contract
d. Stipulation on SSS coverage of OFWs

Validity of standard form contracts

The POEA Standard Employment Contract(POEA-SEC) for OFW is designed primarily for
the protection and benefit in the pursuit of their employment overseas. Its provisions must,
therefore, be construed and applied fairly, reasonably and liberally in their favor. Only then can
its beneficent provisions be carefully carried into effect. (Philippine Transmarine Carriers Inc. v.
NLRC; Wallem Maritime services Inc. v. NLRC)

- In another case (Vir-Jen Shipping and Marine Services v. NLRC), an issue was raised by the
movants on whether or not the seamen violated their contracts of employment when
they demanded 50 % increase in salaries and benefits. The Supreme Court ruled that the
form contracts approved by the National Seamen Board (now POEA) are designed to
protect Filipinos, not foreign shipowners who can take care of themselves.

The standard forms embody the basic minimum which must be incorporated as parts of
the employment contracts (Sec. 15 Rule V, Rules and Regulations Implementing the Labor
Code). They are not collective bargaining agreements or immutable contracts which the
parties cannot improve upon or modify in the course of an agrred peril of time.

To state therefore, that the affected seamen cannot petition the employer for higher
salaries during the 12 months duration of the contract runs counter the established
principles of labor legislation. The National Labor Relations Commission, as the appellate
tribunal from the decisions of the National Seamen Board, correctly ruled that the seamen
did not violate their contracts to warrant their dismissal.

In Suzara v. NLRC, the SC ruled that the act of the dismissed seamen in asking for increases
in their salaries does not constitute a breach of their employment contracts.
Invalidity of contract diminishing salary
A contract which diminishes the pay and benefits of the employee as embodied in the
contract duly approved by the POEA is null and void. The EXCEPTION is when such subsequent
contract providing for lesser pay and benefits is approved by the POEA. ( Chavez v. Bonto-Perez)

Interpretation of overseas employment contract

Any ambiguity in the overseas employment contract shall be interpreted against the
parties that drafted it. (Cadalin v. POEA’s Administrator)
Labor contracts must be interpreted liberally in favor of the worker. (Ditan v. POEA)
The provisions contained in the standard contract of employment for Filipino seamen
pursuant to Memorandum Circular No. 2 (effective on February 1, 1984), are manifestations of
the State in favor of the working class consistent with the social justice and protection of the
working class provisions of the Constitution. Consequently, the payment of death benefit
pension, funeral benefit and gratuity to private respondent, will not preclude allowance to
private respondent’s claim against petitioner which is specifically reserved in the said contract or
employment. (Eastern Shipping Lines, Inc. v. POEA)
Stipulation on SSS coverage of OFWs
Foreign Shipowners and manning agencies had generally expressed their conformity to
the inclusion of Filipino seafarers on board foreign vessels, within the coverage of the Social
Security Act.
The extension of coverage of the Social Security System to Filipino Seafarers arises by
virtue of the assent given in the contract of employment signed by the employer and the
seafarer. By extending the benefits of the Social Security Act to Filipino Seafarers , the
individual employment agreement entered into with a stipulation of such coverage
contemplated in the DOLE-SSS Memorandum Agreement merely gives the effect to the
constitutional mandate affording protection to labor. (Sta. Rita v. CA)
38. WHAT IS THE RULE ON DIMINISHING SALARY OF OFWS; EXPLAIN THE RULE ON
INTERPRETATION OF OVERSEAS EMPLOYMENT CONTRACT.
Invalidity of contract diminishing salary
A contract which diminishes the pay and benefits of the employee as embodied in the
contract duly approved by the POEA is null and void. The EXCEPTION is when such subsequent
contract providing for lesser pay and benefits is approved by the POEA. ( Chavez v. Bonto-
Perez)
 Interpretation of overseas employment contract
Any ambiguity in the overseas employment contract shall be interpreted against the
parties that drafted it. (Cadalin v. POEA’s Administrator)
Labor contracts must be interpreted liberally in favor of the worker. (Ditan v. POEA)
The provisions contained in the standard contract of employment for Filipino seamen
pursuant to Memorandum Circular No. 2 (effective on February 1, 1984), are manifestations
of the State in favor of the working class consistent with the social justice and protection of
the working class provisions of the Constitution. Consequently, the payment of death benefit
pension, funeral benefit and gratuity to private respondent, will not preclude allowance to
private respondent’s claim against petitioner which is specifically reserved in the said
contract or employment. (Eastern Shipping Lines, Inc. v. POEA)
39. ENUMERATE THE PROHIBITED PRACTICES UNDER ART. 34

Art. 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or holder of
authority:

a. To charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay
any amount greater than that actually received by him as a loan or advance;
b. To furnish or publish any false notice or information or document in relation to
recruitment or employment;
c. To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
d. To induce or attempt to induce a worker already employed to quit his employment in
order to offer him to another unless the transfer is designed to liberate the worker from
oppressive terms and conditions of employment;
e. To influence or to attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency;
f. To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
g. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly
authorized representatives;
h. To fail to file reports on the status of employment, placement vacancies, remittance of
foreign exchange earnings, separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor.
i. To substitute or alter employment contracts approved and verified by the Department of
Labor from the time of actual signing thereof by the parties up to and including the
periods of expiration of the same without the approval of the Secretary of Labor;
j. To become an officer or member of the Board of any corporation engaged in travel agency
or to be engaged directly or indirectly in the management of a travel agency; and
 To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and its
implementing rules and regulations.
40. WHO ARE REQUIRED TO SECURE AEP, WHO ARE EXMPTED?

The following are Aliens required to apply for an AEP: (Art. 40 Labor Code)

1. All foreign nationals seeking admission to the Philippines, for the purpose of
employment;

2. Missionaries or religious workers who intend to engage in gainful employment;

3. Holders of Special Investors Resident Visa (SIRV), Special Resident Retiree’s Visa (SRRV),
Treaty Traders Visa (9D) or Special Non-Immigrant Visa (47(a)2) for as long as they occupy
any executive, advisory, supervisory, or technical position in any Philippines establishment.

4. Agencies, organizations or individuals whether public or private, who secure the services
of foreign professionals to practice their professions in the Philippines under reciprocity and
other international agreements;

5. Non-Indo-Chinese Refugees who are asylum seekers and given refugee status by the
United Nations High Commissioner on Refugees (UNHCR) or the Department of Justice under
DOJ Department Order No. 94, series of 1998;

6. Resident foreign national seeking employment in the Philippines

The following are Aliens exempted from securing an AEP: (Art. 40 Labor Code)

1. Resident Foreign Nationals employed or seeking employment in the Philippines (DO

41-03);

2. Members of the diplomatic services and foreign government officials accredited by

the Philippine government;

3. Officers and staff of international organizations of which the Philippine government

is a cooperating member, and their legitimate spouses desiring to work in the Philippines;

4. Foreign nationals elected as members of the Governing Board who do not occupy
any other position, but have only voting rights in the corporation;

5. All foreign nationals granted exemption by special laws and all other laws that may
be promulgated by the Congress;

6. Foreign nationals who come to the Philippines to teach, present and/or conduct
research studies in universities and colleges as visiting, exchange or adjunct professors under
formal agreements between universities or colleges in the Philippines and foreign universities or
colleges; or between the Philippine government and foreign government; provided that the
exemption is on a reciprocal basis; and

7. Owners and representatives of foreign principals, whose companies are accredited by

the Philippine Overseas Administration (POEA), who come to the Philippines for a limited
period solely for the purpose of interviewing Filipino applicants for employment abroad.
41. WHAT IS SVEG; ITS RATIONALE; AND WHO MAY AVAIL?
SPECIAL VISA FOR EMPLOYMENT GENERATION (SVEG)

-is a special visa issued to a qualified non-immigrant foreigner who shall actually employ at
least 10 Filipinos in a lawful and sustainable enterprise, trade, or industry. Qualified foreign
nationals who are granted the SVEG shall be considered special non-immigrants with
multiple entry privileges and conditional extended stay, without the need of prior departure
from the Philippines.
What is the rationale for the SVEG?
EXECUTIVE ORDER NO. 758
It is founded on public interest, particularly on an aspect of employment generation for
Filipinos. According to the April 2008 survey of the National Statistics Office (NSO), there are
2.9 million Filipinos who are currently unemployed. On the other hand, there are foreigners
who want to maintain a lawful presence in the Philippines by actually directly or exclusively
engaging in lawful, viable, and sustainable trade, business, industry, or activity offering local
employment.
Under E.O. no. 758 SECTION 2.
Who may avail - Non-immigrant foreigners who wish to avail of the SVEG should comply
with the following conditions:
a. The foreigner shall actually, directly or exclusively engage in a viable and
sustainablecommercial investment/enterprise in the Philippines, exercises/performs
management acts or has the authority to hire, promote and dismiss employees;
b. He evinces a genuine intention to indefinitely remain in the Philippines;
c. He is not a risk to national security; and
d. The foreigner’s commercial investment/enterprise must provide actual employment to at
least ten (10) Filipinos in accordance with Philippine labor laws and other applicable special
laws.
The above mentioned requirements must be continually satisfied by the foreigner for
him/her to continue to be a holder of the SVEG.
42. WHAT ARE THE GOALS AND OBJECTIVES OF RA 7796?
The goals and objectives of this Act are:

 Promote and strengthen the quality of technical education and skills

development programs to attain international competitiveness;

 Focus technical education and skills development on meeting the changing

demands for quality middle-level manpower;

 Encourage critical and creative thinking by disseminating the scientific and

technical knowledge base of middle-level manpower development programs;

 Recognize and encourage the complementary roles of public and private

institutions in technical education and skills development and training systems;
and

 Inculcate desirable values through the development of moral character with

emphasis on work ethic, self-discipline, self-reliance and nationalism. (Sec.3 of
RA 7796)
43. EXPLAIN THE DUAL TRAINING SYSTEM.
Dual Training System is the framework where a worker-trainee receive training both in
school through theoretical instructions and in the workshop or factory with actual practice
or application. This is to:
a. Promote maximum protection and welfare of the worker-trainee;
b. Improve the quality, relevance, and accountability of technical education and skill
development;
c. Accelerate the employment-generation efforts of the government; and
d. Expand the range of opportunities for upward social mobility of the school-going
population beyond traditional higher levels of formal education (Sec.21 RA 7796)
44. DISTINGUISH BETWEEN SPECIAL WORKERS AND SPECIAL GROUP OF EMPLOYEES.
Special workers are those whose earning power is reduced such as Apprentices, Learners,
and Handicapped workers. Special group of employees are those who receive certain
benefits as regards to their compensation or to their working conditions, namely, Women,
Minors, Househelpers, and Homeworkers. (Art. 57 Labor Code)
45. WHAT ARE THE DISTINCTIONS BETWEEN APPRENTICESHIP AND LEARNERSHIP?
 Point of Distinctions Apprenticeship Learnership

1. As to their definition
means practical training refers to any practical
on the job supplemented training on learnable
by related theoretical occupation which may or
instructions involving may not be
apprenticeable supplemented by
occupations and trades as theoretical instructions.
may be approved by the
DOLE Secretary.

2. As to the requirement of with compulsory related may or may not be

Theoretical Instructions theoretical instructions supplemented by a
(100 hours of theoretical theoretical instruction.
instructions for every 2000
hours of on-the-job
training).
 3. Qualifications An apprentice should be: A learner may be
employed:
a.) at least 15 years of age,
provided those who are at a.) when no experienced
least 15 years of age but workers are available
less than 18 years old may
be eligible b.) the employment of
for
apprenticeship only in non-learner is necessary to
hazardous occupation prevent curtailment of
employment
b.) physically fit for the opportunities
occupation in which he
desires to be trained c.) the employment does
not create unfair
c.) possess vocational competition in terms of
aptitude and capacity for labor costs or impair or
the particular occupation lower working standards
as established through
appropriate tests

d.) possess the ability to

comprehend and follow
oral and written
instructions

4. As to the no. of A participating enterprise is allowed to take in learners

apprentices/learners that or apprentices only up to a maximum of 20% of its
companies may take in regular workforce.

5. As to the period of it should be more than 3 it shall not be more than

employment months but not over 6 3 months
months
 6. As to wage rate entitled to not less than entitled to not less than
75% of the prevailing 75% of the applicable
statutory minimum wage adjuated minimum wage
rate for the 6 months. After
the first months, an
apprentice should be paid
the full minimum wage

7. As to rules on their rehire it is the option of the the enterprise is obliged

employer to hire the to hire the learner after
apprentice even prior the the learnership period
completion of the
apprenticeship period

8. As to the effect of the apprentice becomes a no learnership training

Apprenticeship/Learnership regular employee if will commence until the
Agreement program is not registered. agreement has been
forged.

46. WHAT IS THE RULE ON PROHIBITION AGAINST DISCRIMINATION.

No entity, whether public or private, shall discriminate against a qualified PWD by reason of
disability in regard to job application procedures, the hiring, promotion, or discharge of
employees, employee compensation, job training, and other terms, conditions and privileges
of employment. The following constitutes acts of discrimination:
 a) Limiting, segregating or classifying a job applicant with disability in such a manner that
adversely affects his work opportunities;

b) Using qualification standards, employment tests or other selection criteria that screen out
or tend to screen out a PWD unless such standards, tests or other selection criteria are shown
to be job-related for the position in question and are consistent with business necessity;

c) Utilizing standards, criteria, or methods of administration that:

1) have the effect of discrimination on the basis of disability; or

2) perpetuate the discrimination of others who are subject to common administrative

control.

d) Providing less compensation, such as salary, wage or other forms of remuneration and
fringe benefits, to a qualified employee with disability, by reason of his disability, than the
amount to which a non-disabled person performing the same work is entitled;

e) Favoring a non-disabled employee over a qualified employee with disability with respect
to promotion, training opportunities, study and scholarship grants, solely on account of the
latter's disability;

f) Re-assigning or transferring an employee with disability to a job or position he cannot

perform by reason of his disability;

g) Dismissing or terminating the services of an employee with disability by reason of his

disability unless the employer can prove that he impairs the satisfactory performance of the
work involved to the prejudice of the business entity; provided, however, the employer first
sought to provide reasonable accommodations for PWDs;

h) Failing to select or administer in the most effective manner employment tests which
accurately reflect the skills, aptitud3 or other factor of the applicant or employee with
disability that such tests purports to measure, rather than the impaired sensory, manual or
speaking skills of such applicant or employees, if any; and

i) Excluding PWDs from membership in labor unions or similar organizations.

(Pages 349-350, Chan, 2019 ed.)

47. WHO ARE NOT COVERED BY ART. 82 LC?

Article 82 of the labor Code and Section 2, Rule I, Book III of the Rules to Implement the Labor
Code, expressly exclude the following persons or employees from the coverage of Title I, Book III
thereof, to wit:
a. Government employees- they are governed by the Civil Service Law, rules and;
b. Managerial employees;
 c. Other officers or members of a managerial staff;
d. Domestic servants and persons in the personal service of another, such as house
helpers;
e. Workers paid by result;
f. Field personnel; and
g. Members of the family of the employer
48. DISTINGUISH BETWEEN ART. 82 AND 217 (M) OF LC.
Article 82
-“Managerial employees” refer to those whose primary duty consists of the management of
the establishment in which they are employed or of a department or subdivision thereof,
and to other officers or members of the managerial staff.
- Used only for purposes of Book III (working conditions and rest periods and benefits)
-Supervisors are members of the managerial staff

Article 212 (M)

-"Managerial employee"is one who is vested with the powers or prerogatives to lay down
and execute management policies and/or to hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees.
-Used only for purposes of Book V (forming, joining and assisting of unions, certification
election and collective bargaining)
-Supervisors are not manager employees under Book V
49. EXPLAIN THE RULE ON DOMESTIC HELPER ASSIGNED TO THE EMPLOYER’S BUSINESS
ESTABLISHMENT.

The general criterion that distinguishes domestic or household service is the rendition of work
for the personal comfort and enjoyment of the family of the employer in the home of said
employer.

Thus, if an employer assigns the domestic workers or kasambahay to work, whether in full
or part-time, in a commercial, industrial or agricultural enterprise, the kasambahay ceases
to be one and thus shall be treated as a regular employee of such enterprise and be entitled
to all the labor standards provided in the Labor Code.
50. WHAT ARE THE 2 CATEGORIES OF EMPLOYEES PAID BU RESULT; DISTINGUISH EACH
OTHER.

Work is measured either:

 1) By piece;

2) By task

“By piece” refers to those who are compensated based on the units or pieces of work they
produced and accomplished. The work process involved is usually repetitive and the
compensation is uniform per unit or per piece.

“By task”, on the other hand, refers to those who are compensated based on the
completion or accomplishment of a certain specified task. This is commonly known as
pakyao which simly means wholesale.
51. DISCUSS THE SIME DARBY AND MANILA JOCKEY CLUB EMPLOYEE UNION CASES.

Sime Darby Case: The right to fix the work schedules of the employees rests principally on
their employer. The reason for the adjustment is for the efficient conduct of its business
operations and its improved production. It rationalizes that while the old work schedule
included a 30-minute paid lunch break, the employees could be called upon to do jobs during
that period as they were “on call.” Even if denominated as lunch break, this period could very
well be considered as working time because the factory employees were required to work if
necessary and were paid accordingly for working. Since the employees are no longer required
to work during this one-hour lunch break, there is no more need for them to be compensated
for this period.
Further, management retains the prerogative, whenever exigencies of the service so
require, to change the working hours of its employees. So long as such prerogative is
exercised in good faith for the advancement of the employer’s interest and not for the
purpose of defeating or circumventing the rights of the employees under special laws or
under valid agreements, such exercise is allowed.
Manila Jockey Club Employee Case:
Valid Exercise of management prerogative
When the races were moved to 2:00 p.m., there was no other choice for
management but to change the employees' work schedule as there was no work to be
done in the morning. Evidently, the adjustment in the work schedule of the employees is
justified.
While the CBA provided for a schedule, it also reserved expressly to management
the right to change existing methods or facilities to change the schedules of work. The
CBA also grants respondent the prerogative to relieve employees from duty because of
lack of work.
No diminution of benefits
 The CBA does not guarantee overtime work for all the employees but merely
provides that "all work performed in excess of seven (7) hours work schedule and on days
not included within the work week shall be considered overtime and paid as such."
Respondent was not obliged to allow all its employees to render overtime work
everyday for the whole year, but only those employees whose services were needed after
their regular working hours and only upon the instructions of management. The overtime
pay was not given to each employee consistently, deliberately and unconditionally, but
as a compensation for additional services rendered. Thus, overtime pay does not fall
within the definition of benefits under Article 100 of the Labor Code on prohibition
against elimination or diminution of benefits.
52. WHAT IS THE RECKONING POINT FOR WORK DAY AND WORK WEEK.

Work day means 24 consecutive-hour period which commences from the time the employee
regularly starts to work. It does not necessarily mean that it based on the ordinary calendar
day from 12:00 midnight to 12:00 midnight unless the employee starts to work at this unusual
hour.
Work week is a week consisting of 168 consecutive hours or 7 consecutive 24 hour work days
beginning at the same hour and on the same calendar day each calendar week.
The reckoning point on how a work day or work week is from the time the employee
regularly starts to work on a work day or from the time and day the employee regularly
starts to work on a work week.
53. DISCUSS THE CONCEPT OF CWW.

COMPRESSED WORKWEEK (CWW) is where: (pg 376)

a. the employer may compress the work days from 6 days (Monday to Saturday) to five
days (Monday to Friday) under certain conditions imposed by the Department of Labor and
Employment; and

b. the employees’ workweek was forty five (45) hours consisting of eight hours daily from
Monday to Friday and five (5) hours on Saturday, the employer may propose to compress or
shorten the work week from Monday to Friday with work for nine (9) hours per day without
overtime pay for the excess one (1) hour , provided the following conditions are met:

1. Employees VOLUNTARILY AGREE to work 9 hours a day from Monday to Friday;

2. There is no diminution in the take-home pay and fringe benefits of the employees;

3. Value of benefits that will accrue to the Employee under proposed work schedule is
MORE THAN or, at least, COMMENSURATE with, or equal to, the one-hour overtime pay that
is due them during weekdays based on the Employees quantification;
 4. The one-hour overtime pay of the employees will become due and demandable if ever
they permitted or made to work on any Saturday during the effectivity of the new working
time arrangement, since the agreement between the employees and management is that
there will be no Saturday work in exchange for a longer work day during week-days;

5. The work of the employees DOES NOT involve STRENUOUS PHYSICAL EXERTION and
they are provided with adequate rest periods or coffee breaks in the morning and afternoon;
and

6. The effectivity of the proposed working time arrangement should be of TEMPORARY

duration as determined by the Secretary of Labor

7. Maximum working hours per day-12 hours (mentioned during discussion)

54. WHAT IS FLEXI WORK SCHEDULE; STAGGERED; BROKEN.

FLEXI WORK SCHEDULE UNDER RA 8972 (pg 383)

RA 8972 known as “The Solo Parent’s Welfare Act of 2000” allows SOLO PARENT to work
on Flexible Schedule.

Flexible Work Schedule (Sec 3) is defined by Law as the 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, provided: (Sec 6)

i. Individual and company productivity is not affected; and

Ii. Employer may request exemption from above requirements from DOLE for certain
meritorious grounds

B. FLEXI WORK SCHEDULE DURING ECONOMIC DIFFICULTIES AND EMERGENCIES (pg 383)

a. Specific Guideline - Department Advisory No. 2 Series of 2009

b. Purpose – Adoption of flexible work arrangements is considered as better ALTERNATIVE

than OUTRIGHT TERMINATION of the services of employees or the TOTAL CLOSURE of the
establishments

c. Concept – “Flexible work arrangements” refers to alternative arrangements or schedules

other than the traditional or standard work hours, workdays and work week

d. Flexible Work Arrangements (pg 384)

i. Compressed Workweek

ii. Reduction of Workdays – refers to one where the normal workdays per week
are reduced but should not last for more than 6 months
 iii. Rotation of Workers- refers to one where the employees are rotated or
alternately provided work within the workweek

iv. Forced Leave – refers to one where employees are require to go on leave for
several days or weeks utilizing their leave credits, if there are any

v. Broken Time Schedule – refer to one where the work schedule is not
continuous but the work-hours within the day or week remain

vi. Flexi-holidays Schedule – refers to one where the employees agree to avail
of the holidays at some other days provided there is no diminution of existing benefits as a result
of such agreement.

e. Administrative Flexible Work Arrangements

i. Primary Responsible for administration – Parties to the flexible work schemes

ii. In case of differences, following guidelines are observed:

· Differences are treated as grievances under applicable grievance of the company

· If no grievance mechanism or if it is inadequate, the grievance shall be referred to the

Regional Office which has jurisdiction over the workplace for appropriate conciliation

· Employees are required to maintain, as part of their records, the documentary requirements
providing that the flexible work arrangement was voluntarily adopted

f. Notice Requirement- Employer shall NOTIFY the DOLE through the Regional Office
which has jurisdiction over the workplace.
55. WHO IS A SOLO PARENT? DISCUSS THE CONSTITUTIONALITY OF POLICY INSTRUCTION
NO. 54.
Who is a Solo Parent?

Any individual who falls under any of the following categories:

(1) A woman who gives birth as a result of rape and other crimes against chastity even
without a final conviction of the offender: Provided, That the mother keeps and raises the
child;

(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;

(3) Parent left solo or alone with the responsibility of parenthood while the spouse is
detained or is serving sentence for a criminal conviction for at least one (1) year;
 (4) Parent left solo or alone with the responsibility of parenthood due to physical and/or
mental incapacity of spouse as certified by a public medical practitioner;

(5) Parent left solo or alone with the responsibility of parenthood due to legal separation
or de facto separation from spouse for at least one (1) year, as long as he/she is entrusted
with the custody of the children;

(6) Parent left solo or alone with the responsibility of parenthood due to declaration of
nullity or annulment of marriage as decreed by a court or by a church as long as he/she is
entrusted with the custody of the children;

(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of
spouse for at least one (1) year;

(8) Unmarried mother/father who has preferred to keep and rear her/his child/children
instead of having others care for them or give them up to a welfare institution;

(9) Any other person who solely provides parental care and support to a child or children;

(10) Any family member who assumes the responsibility of head of family as a result of the
death, abandonment, disappearance or prolonged absence of the parents or solo parent.

A change in the status or circumstance of the parent claiming benefits under this Act, such
that he/she is no longer left alone with the responsibility of parenthood, shall terminate
his/her eligibility for these benefits.
CONSTITUTIONALITY OF POLICY INSTRUCTION NO. 54.

In SAN JUAN DE DIOS HOSPITAL EMPLOYEES ASSOCIATION-AFW/MA, et al. vs. NLRC and SAN
JUAN DE DIOS HOSPITAL. SC held that “ Policy Instructions No. 54 to our mind unduly extended
the statute. The Secretary of Labor moreover erred in invoking the "spirit and intent" of
Republic Act No. 5901 and Article 83 of the Labor Code for it is an elementary rule of statutory
construction that when the language of the law is clear and unequivocal, the law must be taken
to mean exactly what it says. No additions or revisions may be permitted. Policy Instructions
No. 54 being inconsistent with and repugnant to the provision of Article 83 of the Labor Code,
as well as to Republic Act No. 5901, should be, as it is hereby, declared void”

If petitioners are entitled to two days off with pay, then there appears to be no sense at all why
Section 15 of the implementing rules grants additional compensation equivalent to the regular
rate plus at least twenty-five percent thereof for work performed on Sunday to health
personnel, or an "additional straight-time pay which must be equivalent at least to the regular
rate" "[f]or work performed in excess of forty hours a week.
A perusal of Republic Act No. 5901 reveals nothing therein that gives two days off with pay for
health personnel who complete a 40-hour work or 5-day workweek. In fact, the Explanatory
Note of House Bill No. 16630 (later passed into law as Republic Act No. 5901) explicitly states
that the bill's sole purpose is to shorten the working hours of health personnel and not to dole
out a two days off with pay.

56. ENUMERATE THE PRINCIPLES IN DETERMINING HOURS WORKED.

Under Book Three of the Labor Code
SECTION 4. Principles in determining hours worked. — The following general principles shall
govern in determining whether the time spent by an employee is considered hours worked
for purposes of this Rule:
(a) All hours are hours worked which the employee is required to give his employer,
regardless of whether or not such hours are spent in productive labor or involve physical or
mental exertion.
(b) An employee need not leave the premises of the work place in order that his rest period
shall not be counted, it being enough that he stops working, may rest completely and may
leave his work place, to go elsewhere, whether within or outside the premises of his work
place.
(c) If the work performed was necessary, or it benefited the employer, or the employee
could not abandon his work at the end of his normal working hours because he had no
replacement, all time spent for such work shall be considered as hours worked, if the work
was with the knowledge of his employer or immediate supervisor.
(d) The time during which an employee is inactive by reason of interruptions in his work
beyond his control shall be considered working time either if the imminence of the
resumption of work requires the employee's presence at the place of work or if the interval
is too brief to be utilized effectively and gainfully in the employee's own interest.
57. DISCUSS THE EFFECTS OF POWER INTERRUPTIONS.
The following are effects of power interruptions or brown-outs:
1. Brown-outs of short duration but not exceeding twenty (20) minutes shall be treated
as worked or compensable hours whether used productively by the employees or
not.
2. Brown-outs running for more than twenty (20) minutes may not be treated as hours
worked provided any of the following conditions are present:
a. The employees can leave their workplace or go elsewhere whether within or
without the work premises; or
b. The employees can use the time effectively for their own interest.
 3. In each case, the employer may extend the working hours of his employees outside
regular schedules to compensate for the loss of productive man-hours without being
liable for overtime pay.
4. Industrial enterprises with one or two workshifts may adopt any of the workshifts
prescribed for enterprises with three (3) workshifts to prevent serious loss or
damage to materials, machineries or equipment that may result in case of power
interruptions.
5. The days when work was not required and no work could be done because of
shutdown due to electrical power interruptions, lack of raw materials and repair of
machines, are not deemed hours worked.
58. MEAL TIME OF NOT LESS THAN 20 MINS. A) WHEN COMPENSABLE; B) WHEN NOT
COMPENSABLE? EXPLAIN.
1. Shortening of meal time to not less than 20 minutes, WHEN COMPENSABLE.
In the following cases, however, a meal period of not less than twenty minutes may be
given by the employer provided that such meal period is credited as compensable hours
worked of the employee:
a. Where the work is a non-manual work in nature or does not involve
strenuous physical exertion;
b. Where the establishment regularly operates for not less than sixteen hours a
day;
c. In cases of actual or impending emergencies, or when there is urgent work to
be performed on machineries, equipment or installations to avoid serious
loss which the employer would otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable goods.

2. Shortening of meal time to not less than 20 minutes, WHEN NOT COMPENSABLE.
The law allows a situation where the employees themselves request for the shortening
of meal period to not less than 20 minutes for the purpose of allowing them to leave work
earlier than the lapse of the eight hours required by law. This shortened period, however, shall
not be considered compensable working time provided the following conditions are complied
with:
a. The employees voluntarily agree in writing to a shortened meal period of
thirty (30) minutes and are willing to waive the overtime pay for such
shortened meal period.
b. There should be no diminution in the benefits of the employees which they
receive prior to the effectivity of the shortened meal period;
 c. The work of the employees does not involve strenuous physical exertion and
they are provided with adequate coffee breaks in the morning and
afternoon.
d. The value of the benefits derived by the employees from the proposed work
arrangement is equal to or commensurate with the compensation due them
for the shortened meal as well as the overtime pay for 30 minutes as
determined by the employees concerned;
e. The overtime pay of the employees will become due and demandable if ever
they are permitted or made to work beyond 4:30 p.m.; and
f. The effectivity of the proposed working time arrangement shall be for a
temporary duration as determined by the Secretary of Labor and
Employment.
59. GIVE ONE ILLUSTRATION OF NIGHT SHIFT DIFFERENTIAL COMPUTATION.
For regular work in the night shift on an ordinary day, the night shift differential pay is plus
10% of the basic hourly rate or a total of 110% of the basic hourly rate. Thus using as basis
P382.00 which is the minimum daily wage rate of a private sector non-agricultural workers
and employees in the NCR, the night shift differential pay under this situation may be
computed as follows:
Night shift differential pay for regular night shift work on an ordinary day
P382 + 10% of P382 = P382 + (0.10 x P382)
= 382 + P38.20
P420.20/day
Or

110% of P382 = 1.1 x P382

=P420.20/day

For regular work in the night shift on a rest day, the night shift differential pay is plus
10% of the basic hourly rate on a rest day or a total of 110% of the regular hourly rate.
Thus, using the same P382.00 as basis, the night shift differential pay under this
situation may be computed as follows:
Night shift differential pay for regular night shift work on a rest day:
(130% of P 382) + 10% of (130% of P382)
= (1.3 x P382) + 0.10 x (1.3 x P382)
= P496.60 + P49.66
= P546.26/day

Or

110% of (130% of P382)

 =1.1 x (1.3 x P382)
=P546.26/day

For regular work in the night shift on a special holiday or regular holiday, it is important
to note that since special holidays and regular holidays are calendar days (i.e., 24-hour
period from 12 midnight to 12 midnight of the following day), the night shift is either
cut-off at 12 midnight or starts only at 12 midnight. Hence, the night shift differential
pay for such days may be determined by the hour on the basis of the hourly rate not the
daily rate.

Thus, using the same P382.00 or the equivalent hourly rate of P47.75 (P382/8
hours) as basis, the night shift differential pay may be computed as follows:

c.1. On a special day:

Night shift differential pay for regular night shift work on a special
holiday:

(130% of P47.75) + 10% of (130% of P47.75)

= (1.3 x P47.75) + 0.10 x (1.3 x P47.75)
=P62.08 + P6.21
=P68.29/hour
Or

110% of (130%of 47.75)

=1.1 x (1.3 x P47.75)
=P68.29/hour

c. 2. On a regular holiday:
Night shift differential pay for regular night shift work on a regular
holiday:

(200% of P47.75) + 10% of (200% of 47.75)

= (2.0 x P47.75) + 0.10 x (2.0 x P47.75)
=95.50 + P9.55
=P105.05/hour
Or
=110% of (200% of P47.75)
=1.1 x (2.0 x P47.75)
=105.05/hour
For overtime night shift work falling on an ordinary day, the overtime night shift
differential pay is plus 100% of 125% of basic hourly rate or a total of 110% of 125% of
basic hourly rate. Thus, using P382.00 or the hourly rate of P47.75 (P382/8 hours) as
basis, the overtime night shift differential pay under this situation may be computed as
follows:

Overtime night shift differential pay for overtime night shift work on an ordinary
day:
(125% of P47.75) + 10% of (125% of P47.75)
= (1.25 x P47.75) + 0.10 x (1.25 x P47.75)
=P59.69 + P5.97
= P65.66/hour

Or

=110% of (125% of P47.75)

= 1.1 x (1.25 x P47.75)
=P65.66/hour

For overtime night shift work falling on rest day, special holiday or regular holiday, the
following illustrations of computation may prove helpful (using the same basis as above,
i.e., P382.00 or P47.75 per hour):

e.1. On a special holiday or rest day:

Overtime night shift differential pay for overtime night shift work on a special
holiday or rest day:
130% x (130% of P47.75) + 10% of (130% of 130% of P47.75)
=1.3 x (1.3 x P47.75) + 0.10 x (1.3 x 1.3 x P47.75)
=P80.70 + P8.07
=P88.77/hour

Or

169% of P47.75 + 10% of (169% of P47.75)

=80.70 + P8.07
=P88.77/hour

e.2. On a regular holiday:

Overtime night shift differential pay for overtime night shift work on a regular
holiday:
130% x (200% of P47.75) + 10% of (130% of 200% of P47.75)
=1.3 x (2.0 x P47.75) + 0.10 x (1.3 x 2.0 x P47.75)
 =P124.15 + P12.42
=P136.57/hour
Or
260% of P47.75 + 10% of (260% of P47.75)
=P124.15 + P12.42
=P136.57/hour
60. GIVE ONE ILLUSTRATION OF OVERTIME PAY COMPUTATION.
GUIDE IN THE COMPUTATION OF NIGHT SHIFT DIFFERENTIAL PAY
Ordinary day
Sunday or rest day
Special day
Special day falling on a rest day
Regular Holiday
Regular holiday falling on rest day
Ordinary day, night shift
Rest day, night shift
Special day, night shift
Special day, rest day, night shift
Regular holiday, night shift
Regular holiday. Rest day, night shift
Double holiday, night shift
Double holiday, rest day, night shift
Ordinary day, overtime (OT)
Rest day, overtime
Special day, rest day, overtime
Regular holiday, overtime
Regular holiday, rest day. Overtime
Double holiday, overtime
Double holiday, rest day, overtime
Ordinary day. Night shift, overtime
Rest day, night shift, overtime
Special day, night shift, overtime
Special day, rest day, night shift, OT
Regular holiday, night shift, OT
Regular holiday, rest day, night shift, OT
Double holiday, night shift, OT
Double holiday, rest day, night shift, OT
100& or 1
130 % or 1.3
130% or 1.3
150% or 1.5
200% or 2
260% or 2.6
1 x 1.1 = 1.1 or 110%
1.3 x 1.1 =1.43 or 143%
1.3 x 1.1 = 1.43 or 143%
1.5 x 1.1 = 1.65 or 165%
2 x1.1 = 2.2 or 220%
2.6 x 1.1 = 2.86 or 286%
3 x 1.1 = 3.3 or 330%
3.9 x 1.1 = 4.29 or 429
1 x 1.25 = 1.25 or 125%
1.3 x 1.3 = 1.69 or 169%
1.5 x 1.3 = 1.95 or 195%
2 x 1.3 = 2.6 or 260%
2.6 x 1.3 = 3.38 or 338%
3 x 1.3 = 3.9 or 390%
3.9 x 1.3 = 5.07 or 507%
1 x 1.1 x 1.25 = 1.375 or 137.5%
1.3 x 1.1 x 1.3 = 1.859 or 185.9%
1.3 x 1.1 x 1.3 = 1.859 or 185.9%
1.5 x 1.1 x 1.3 = 2.145 or 214.5%
2 x 1.1 x 1.3 = 286 or 286%
2.6 x 1.1 x 1.3 = 3.718 or 317.8%
3 x 1.1 x 1.3 = 4.29 or 429%
3.9 x 1.1 x 1.3 = 5.577 or 557.7%
61. DISCUSS THE VALIDITY OF STIPULATED OT ON CBA; BUILT IN OT; SEAFARER’S OT.

Validity of Stipulated OT

Generally, the premium pay for work performed on the employee’s rest days or on special
days or regular holidays is included as part of the regular rate of the employee in the
computation of overtime pay for any overtime work rendered on said days, especially if the
employer pays only the minimum overtime rates prescribed by law. The employees and
employer, however, may stipulate in their CBA the payment of overtime rates higher than
those provided by law and exclude the premium payments in the computation of overtime
pay. Such agreement may be considered valid only if the stipulated overtime pay rates will
yield to the employees not less than the minimum prescribed by law.

Built in OT.

In case the employment contract stipulates that the compensation includes built-in overtime
pay and the same is duly approved by the Director of the Bureau of Local Employment, the
non-employment by the employer of any overtime pay for overtime work is justified and
valid.

In PAL Employees Savings and Loan Association, Inc. v. NLRC, where the period of normal
working hours per day was increased to 12 hours, it was held that the employer remains liable
for whatever deficiency in the amount for overtime work in excess of the first 8 hours, after
recomputation shows such deficiency.

Entitlement of Seafarers to OT pay.

a. Actual overtime service necessary to justify claim for overtime pay.

The correct criterion in determining whether or not the sailor are entitled to overtime pay is
not whether they are on board and cannot leave ship beyond the regular 8 working hours a
day, but whether they actually rendered service in excess of said number of hours.

See Stolt-Nielsen Marine Serves, INC. v NLRC

b. Guaranteed overtime pay, not included in the computation of salary for unexpired
portion.

Raised as one of the issues in 2008 case Bahia Shipping Services, Inc v. Chua, whether in the
computation of the monetary award to an illegally dismissed OFW, respondent’s
“guaranteed overtime” pay amounting to 197 USD per month should be included as part of
his salary. Petitioner contends that there is no factual or legal basis for the inclusion of said
amount because, after respondent’s repatriation, he could have not have rendered any
overtime work. The SC ruled in favor of the Petitioner.
62. WHAT IS THE RULE ON WAIVER AND LACHES OF OVERTIME PAY ENTITLEMENT?
a. Waiver
The right to claim overtime pay is not subject to waiver. Such right is governed
by law and not merely by the agreement of the parties. While rights may be waived, the
same must not be contrary to law, public order, public policy, morals, good customs or
prejudicial to a third person with a right recognized by law.
But if the waiver is done in exchange for and in consideration of certain valuable
privileges, among them that the value of said privileges did not compensate for such
work, such waiver may be considered valid.

b. Effect of laches or estoppel

The principle of laches or estoppel does not apply to the right of employees to
claim past overtime pay. Mere lapse of time or silence of the employees is not sufficient
to defeat and frustrate the purpose of the law in granting such right by mere indirection.
Laches is the failure or neglect for an unreasonable and unexplained length of
time to do that which, by exercising due diligence, could or should have been done
earlier. Stated differently, laches may also be defined as such neglect or omission to
assert a right taken in conjunction with the lapse of time and other circumstances
causing prejudice to an adverse party as will operate as a bar in equity.
The question of laches is addressed to the sound discretion of the court, and
since it is an equitable doctrine, its application is controlled by equitable considerations.
It cannot work to defeat justice or to perpetrate fraud or injustice. Laches cannot be
charged against a worker when he has not incurred undue delay in the assertion of his
rights because he filed his complaint within the 3-year reglementary period for the filing
of monetary claims. Under this situation, he cannot be said to have slept on his rights
for an unreasonable length of time.
When an employee fails to assert his right immediately upon violation thereof, such failure
cannot ipso facto be deemed as a waiver of the oppression. The worker and his employer
are not equally situated. When a worker keeps silent inspite of flagrant violations of his
rights, it may be because he is seriously fearful of losing his job. The dire consequences
thereof on his family and his dependents must have prevented him from complaining. In
short his thoughts of sheer survival weigh heavily against launching an attack upon his
more powerful employee.
63. EXPLAIN THE RATIONALE BEHIND ART. 88 ON UNDERTIME & LEAVE OF ABSENCE
OFFSETTING

Article 88 of the Labor Code is explicit in its proscription that “undertime work on any
particular day shall not be offset by overtime work on any other day.” This prohibition holds
true even if the overtime work is rendered on the same day the employee incurred the
undertime in a situation where the employee reported back to work after the first eight hours
of the same day he incurred his undertime. The reason is simple. The employee is paid his
ordinary hourly rate for his undertime while he is supposed to be paid additional overtime
pay for his overtime work. Consequently, offsetting his undertime against overtime would be
unfair to him as it will deprive him of his entitlement to overtime pay. The law does not
countenance this situation. To allow the employer to do so would be to circumvent the law
on payment of overtime pay for overtime work.

In entities or firms which deduct undertime hours from accrued leave benefits of
employees, further offsetting thereof against overtime work is not allowed. The proper
method is to deduct the undertime hours from the accrued leave of the employee but he
should be paid the overtime compensation due him. After exhausting the accrued leave
credits, the undertime work should be deducted from his wage for the day he incurred the
same. Any overtime work he rendered in excess of 8 hours should be fully compensated.
Furthermore, the proscription found in Article 88 will prevent the absurd situation whereby
an employee could schedule his working hours at will resulting in the muddling of the
regular schedules of work. (page 419 of Joselito Chan labor book 2019 edition)
64. WHAT IS BLUE SUNDAY LAW; DISCUSS THE RULE ON REST DAY BASED ON RELIGIOUS
GROUNDS.
The “Blue Sunday Law” (R.A. No. 946) used to forbid commercial, industrial or
agricultural enterprises to open on any Sunday, Christmas Day, New Year’s Day, Holy
Thursday, and Good Friday. The rationale was noted thus: “Sundays and legal holidays are
set aside by law as days of rest. The life, existence, and happiness of a person do not
depend only on the satisfaction of his physical needs. There are moral, intellectual, and
spiritual needs as imperative as the physical ones.” Yet the Labor Code has made Sunday an
ordinary working day.
The employer shall determine and schedule the weekly rest day of the employees subject to
collective bargaining agreement and to such rules and regulations as the Secretary of Labor
and Employment may provide. However, the employer shall resoect the preference of
employees as to their weekly rest day when such preference is based on religious grounds.
(Art. 91 (b) LC)
65. GIVE ONE ILLUSTRATION OF REST DAY PAY COMPUTATION.
The minimum statutory premium pay rates for the situations contemplated under Article
93 are as follows:
a. For work performed on rest days or on special holidays, the premium pay is plus 30%
of the daily wage rate of 100% or a total of 130%. Thus, using as basis Php.382.00 which is
the minimum daily wage rate of private sector non-agricultural workers and employeesin
the National capital region, as mandated by Wage Order No. NCR-14 effevtive on June 14,
2008:
For work performed on rest days or on special holidays - plus 30% of the daily basic
rate of 100% or a total of 130%:
30% of P382 = 0.30 x P382.00 = P114.60
P382.00 + P114.60 = P496.60
or
130% of P382 = 1.3 x P382 = P496.60
b. For work performed on a rest day which is also a special holiday, the premium pay is
plus 50% of the daily wage rate at 100% or a total of 15%. Thus, using the same P382.00 as
basis.
For work performed on a rest day which is also a special day – plus 50% of the daily basic
rate of 100% or a total of 150%:
50% of P382.00 = 0.5 x P382.00 = P191.00
P382.00 + P191.00 = P573.00
or
150% of Php.382.00 = 1.5 x Php382.00 = Php 573.00