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CODES AND NOTES ON LABOR STANDARDS

by PORFERIO JR. and MELFA SALIDAGA


CODES AND NOTES ON LABOR STANDARDS
Art. 1. Name of Deree. T!"# Deree #!a$$ be %no&n a# t!e
'Labor Code of t!e P!"$"(("ne#'.
Pre#"dent"a$ Deree No. ))* otherwise known as the Labor Code of the
Philippines.
So"a$ $e+"#$at"on , include laws that provide particular kinds of protection or
benefits to society or segments thereof in furtherance of social justice.
Labor Le+"#$at"on , consists of statutes, regulations and jurisprudence
governing the relations between capital and labor, by providing for employment
standards and a legal framework for negotiating, adjusting and administering
those standards and other incidents of employment.
C$a##"f"at"on# of Labor Le+"#$at"on
1. Labor #tandard# $a& , is that which sets out the minimum terms,
conditions and benefits of employment that employers must provide or
comply with and to which employees are entitled as a matter of legal right.
s defined more specifically by jurisprudence, are the minimum
re!uirements prescribed by e"isting laws, rules and regulations relating to
wages, hours of work, cost#of#living allowance, and other monetary
welfare benefits, including occupational safety, and health standards.$
(Maternity Children's Hospital vs. Secretary of Labor, GR No. 7!"!, #$ne
%", &!!.'
2. Labor re$at"on# $a& , defines the status, rights and duties, and the
institutional mechanisms, that govern the individual and collective
interactions of employers, employees or their representatives.
Labor # is understood as physical toil although it does not necessarily e"clude
the application of skill, thus there is skilled and unskilled labor.
So"a$ J-#t"e , is neither communism, nor despotism, nor atomism nor
anarchy, but the humani%ation of laws and the e!uali%ation of social and
economic forces by the &tate so that justice in its rational and objectively secular
conception may at least be appro"imated. &ocial justice means the promotion of
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
the welfare of all the people, the adoption by the 'overnment of measures
calculated to insure economic stability of all the component elements of society,
through the maintenance of a proper economic and social e!uilibrium in the
interrelations of the members of the community, constitutionally, through the
adoption of measures legally justifiable, or e"tra#constitutionally, the e"ercise of
powers underlying the e"istence of all governments on the time#honored principle
of sal$s pop$li est s$pre(a le).$ (Calalan* vs. +illia(s, 7" ,hil. 7-..'
(hile social justice is the raison d'etre of labor laws, their basis or foundation is
the police power of the &tate.
Po$"e Po&er , is the power of the government to enact laws, within
constitutional limits, to promote the order, safety, health, morals and general
welfare of society.
)t is settled that state legislatures may enact laws for the protection of the safety
and health of employees as an e"ercise of police power.
Art. *. Date of effet"."ty. T!"# Code #!a$$ ta%e effet #"/ 012
mont!# after "t# (rom-$+at"on.
May 13 145) P* +o. ,,- was signed into law.
No.ember 613 145) , effectivity date of the Labor Code.
Art. 7. De$arat"on of ba#" (o$"y. T!e State #!a$$ afford
(rotet"on to $abor3 (romote f-$$ em($oyment3 en#-re e8-a$ &or%
o((ort-n"t"e# re+ard$e## of #e/3 rae or reed and re+-$ate t!e
re$at"on# bet&een &or%er# and em($oyer#. T!e State #!a$$
a##-re t!e r"+!t# of &or%er# to #e$f9or+an":at"on3 o$$et".e
bar+a"n"n+3 #e-r"ty of ten-re3 and ;-#t and !-mane ond"t"on#
of &or%.
T!e Ba#" Po$"y of t!e Labor Code
.. Protection to labor/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
-. Promote full employment/
0. 1nsure e!ual work opportunities regardless of se", race or creed, and
,. 2egulate the relations between workers and employers
R"+!t# of <or%er# =nder Art. 7 of t!e Labor Code
.. &elf#organi%ation/
-. Collective bargaining/
0. &ecurity of tenure/ and

,. 3ust and humane conditions of work
Con#t"t-t"ona$ Ba#"# of t!e Labor Code
Art. II3 Se. 1> # the .456 Constitution declares as a state policy7 8he
&tate affirms labor as a primary social economic force. )t shall protect the
rights of workers and promote their welfare.$
Art. III3 Se. 1>3 (ar. * no involuntary servitude
Art. I?9B3 Se. *3 Par. 1 C&C embraces all branches... agencies of
government, including '9CCs with original charters.
Art. I?9B3 Se. *3 (ar. 7 +o officer or employee shall be removed or
suspended e"cept for cause provided by law
Art. I?9B3 Se. @ standardi%ation of compensation of government
officials and employees.
Art. ?II3 Se. 1 the right to own, establish economic enterprises subject
to the duty of the &tate to promote distributive justice
Art. ?II3 Se. 1* preferential use of :ilipino labor
Art. ?II3 Se. 1)3 (ar. * practice of all professions shall be limited to
:ilipinos
Art. ?II3 Se. 11 Congress shall not provide for the formation,
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
organi%ation, or regulation of private corporations
Art. ?III3 Se. 1 protect and enhance right to human dignity, reduce
social, economic and political irregularities, and remove cultural
ine!ualities by e!uitably diffusing wealth and political power for the
common good
Art. ?III3 Se. * promotion of social justice shall include the commitment
to create economic opportunities
Art. ?III3 Se. 73 (ar. 1 protection to labor, local and overseas,
organi%ed and organi%ed, and promote full employment and e!uality of
employment opportunities for all
Art. ?III3 Se. 73 (ar. * guarantee the r"+!t# of a$$ &or%er#A
;.< self#organi%ation/
;-< collective bargaining and negotiations/
;0< peaceful concerted activities, including the right to strike in accordance
with law/
;,< security of tenure/

;=< humane conditions of work/
;>< living wage/
;6< participate in policy and decision#making processes affecting their
rights and benefits
Art. ?III3 Se. 73 (ar. 7 shared responsibility7 voluntary modes in settling
disputes
Art. ?III3 Se. 73 (ar. ) regulate the relations between workers and
employers, recogni%ing the right of labor to its /$st share in the fr$its of
prod$ction and the ri*ht of enterprises to reasonable ret$rns on
invest(ents and to e)pansion and *ro0th. 0Con#t"t-t"ona$ ba$ane
bet&een t!e r"+!t# of &or%er# and em($oyer#2
3ob is a property, and no person shall be deprived of life, liberty, and property
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
without due process.
8hrough distributive justice, labor must receive what is due them for the return of
investment.
Art. ). Con#tr-t"on "n fa.or of $abor. A$$ do-bt# "n t!e
"m($ementat"on and "nter(retat"on of t!e (ro."#"on# of t!"# Code3
"n$-d"n+ "t# "m($ement"n+ r-$e# and re+-$at"on#3 #!a$$ be
re#o$.ed "n fa.or of $abor.
8he &upreme Court adopts the liberal approach which favors the e"ercise of
labor rights.
8he labor law is liberally construed in favor of the workers and strictly construed
against the employers.
8hose who have less in life should have more in law.
Mana+ement R"+!t#
)t should not be supposed that every labor dispute will be automatically decided
in favor of labor. ?anagement has also its own rights which are entitled to
respect and enforcement in the interest of simple fair play.
8he law, in protecting the rights of the laborer, authori%es neither oppression nor
self#destruction of the employer.
R"+!t to Ret-rn of In.e#tment# 0ROI2 , the employer has the right to
recover his investments and to make profit. 8he Constitution provides that
the &tate shall regulate the relations between workers and employers,
recogni%ing the right of labor to its just share... and the right of enterprises
to reasonable returns on investments, and to e"pansion and growth.
T!e R"+!t to Pre#r"be R-$e# , employers have the right to make
reasonable rules and regulations for the government of their employees,
and when employees, with knowledge of an established rule, enter the
service, the rule becomes part of the contract of employment.
T!e R"+!t to Se$et Em($oyee# , an employer has a right to select his
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
employees and to decide when to engage them. 8he &tate has no right to
interfere in a private employment/ it cannot interfere with the liberty of
contract with respect to labor e"cept in the e"ercise of the police power. )f
the employer can compel the employee to work against the latter@s will,
this is servitude. )f the employee can compel the employer to give him
work against the employer@s will, this is oppression.
R"+!t to Tran#fer or D"#!ar+e Em($oyee# , the employer has the
perfect right to transfer, reduce or lay off personnel in order to minimi%e
e"penses and to insure the stability of the business, and even to close the
business, provided the transfer or dismissal is not abused but is done in
good faith and is due to causes beyond control. 8o hold otherwise would
be oppressive and inhuman.
Art. @. R-$e# and re+-$at"on#. T!e De(artment of Labor and ot!er
+o.ernment a+en"e# !ar+ed &"t! t!e adm"n"#trat"on and
enforement of t!"# Code or any of "t# (art# #!a$$ (rom-$+ate t!e
nee##ary "m($ement"n+ r-$e# and re+-$at"on#. S-! r-$e# and
re+-$at"on# #!a$$ beome effet".e f"fteen 01@2 day# after
anno-nement of t!e"r ado(t"on "n ne&#(a(er# of +enera$
"r-$at"on.
8he Labor Code itself in rt. = vests the *epartment of Labor and 1mployment
with rule#making powers in the enforcement thereof.
ART. 1. Applicability. 9 A$$ r"+!t# and benef"t# +ranted to &or%er# -nder t!"#
Code #!a$$3 e/e(t a# may ot!er&"#e be (ro."ded !ere"n3 a(($y a$"%e to a$$
&or%er#3 &!et!er a+r"-$t-ra$ or non9a+r"-$t-ra$. (As amended by
Presidential Decree No. 570-A, November 1, 1974.
8he Code is applicable to all employees in private sector and government
corporations without original charter.
Ander the present state of the law, the test in determining whether a government#
owned or controlled corporation is subject to the Civil &ervice Law is the manner
of its creation. !overnment corporations created by special (ori"inal
c#arter $rom %on"ress are s&b'ect to %ivil (ervice r&les, while t#ose
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
incorporated &nder t#e "eneral %orporation )a* are covered by t#e )abor
%ode.
8he government#owned#and#controlled corporations with original charter$ refer
to corporations chartered by special law as distinguished from corporation
organi%ed under our general incorporation statute, the Corporation Code.
(hile government employees are allowed under the .456 Constitution to
organi%e and join union of their choice, there is no law permitting them to strike.
Art. 1*>. B"#"tor"a$ and enforement (o&er.
B"#"tor"a$ Po&er of t!e Seretary of Labor and Em($oyment or !"# d-$y
a-t!or":ed re(re#entat".e#3 "n$-d"n+ $abor re+-$at"on off"er#
.. ccess to employerBs records and premises at any time of the day or night
whenever work is being undertaken therein/
-. 8o copy from employer@s records/
0. 8o !uestion any employee
,. 8o investigate any fact, condition or matter which may be necessary to
determine violations or which may aid in the enforcement of this Code
Enforement Po&er of t!e Seretary of Labor and Em($oyment or !"# d-$y
a-t!or":ed re(re#entat".e#
.. 8o to issue compliance orders to give effect to the labor standards
provisions of this Code and other labor legislation based on the findings of
labor employment and enforcement officers or industrial safety engineers
made in the course of inspection/
-. 8o issue writs of e"ecution to the appropriate authority for the enforcement
of their orders/
0. 8he &ecretary of Labor and 1mployment to order stoppage of work or
suspension of operations of any unit or department of an establishment
when non#compliance with the law or implementing rules and regulations
poses grave and imminent danger to the health and safety of workers in
the workplace.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
,. 8he &ecretary of Labor and 1mployment may re!uire employers to keep
and maintain such employment records as may be necessary in aid of his
visitorial and enforcement powers under this Code.
)t is the right of employer to ask authority from visiting labor personnel. :ailure
may result to a waiver.
1mployer@s remedy to contest the findings of the &ecretary of Labor and
1mployment or his duly authori%ed representatives is the presentation of
documentary evidence, i.e. payrolls, &&& payment receipts.
n order issued by the duly authori%ed representative of the &ecretary of Labor
and 1mployment under this rticle may be appealed to the latter. )n case said
order involves a monetary award, an appeal by the employer may be perfected
only upon the posting of a cash or surety bond issued by a reputable bonding
company duly accredited by the &ecretary of Labor and 1mployment in the
amount e!uivalent to the monetary award in the order appealed from.
(ithin twenty#four hours, a hearing shall be conducted to determine whether an
order for the stoppage of work or suspension of operations shall be lifted or not.
)n case the violation is attributable to the fault of the employer, he shall pay the
employees concerned their salaries or wages during the period of such stoppage
of work or suspension of operation.
)t shall be unlawful for any person or entity to obstruct, impede, delay or
otherwise render ineffective the orders of the &ecretary of Labor and
1mployment or his duly authori%ed representatives issued pursuant to the
authority granted under this rticle, and no inferior court or entity shall issue
temporary or permanent injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement orders issued in accordance
with this rticle.

ny government employee found guilty of violation of, or abuse of authority,
under this rticle shall, after appropriate administrative investigation, be subject
to summary dismissal from the service.

Art. 1*4. Reo.ery of &a+e#3 #"m($e money $a"m# and ot!er
benef"t#.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
T!e Re+"ona$ D"retor of t!e De(artment of Labor and Em($oyment or any
of t!e d-$y a-t!or":ed !ear"n+ off"er# of t!e De(artment "# em(o&ered,
through summary proceeding and after due notice, to hear and decide1
.. any matter involving the recovery of wages and other monetary claims and
benefits, including legal interest, provided that the aggregate money
claims of each employee or househelper does not e"ceed :ive thousand
pesos ;P=,CCC.CC<.
-. owing to an employee or person employed in domestic or household
service or househelper under this Code
0. arising from employer#employee relations
,. complaint does not include a claim for reinstatement/ and
8he 2egional *irector or hearing officer shall decide or resolve the complaint
within thirty ;0C< calendar days from the date of the filing of the same.
Any #-m t!-# reo.ered on behalf of any employee or househelper pursuant to
this rticle #!a$$ be !e$d "n a #(e"a$ de(o#"t ao-nt by, and #!a$$ be (a"d
on order of, the ;.< Secretary of Labor and 2(ploy(ent or ;-< the Re*ional
3irector or ;0< directly to the e(ployee or househelper concerned.
ny such sum not paid to the employee or househelper because he cannot be
located after diligent and reasonable effort to locate him within a period of three
;0< years, shall be held as a special fund of the *epartment of Labor and
1mployment to be used e"clusively for the amelioration and benefit of workers.
Any de"#"on or re#o$-t"on of t!e Re+"ona$ D"retor or !ear"n+ off"er
(-r#-ant to t!"# (ro."#"on may be a((ea$ed on the same grounds provided in
rticle --0 of this Code, &"t!"n f".e 0@2 a$endar day# from ree"(t of a o(y
of #a"d de"#"on or re#o$-t"on3 to t!e Nat"ona$ Labor Re$at"on# Comm"##"on
&!"! #!a$$ re#o$.e t!e a((ea$ &"t!"n ten 0162 a$endar day# from the
submission of the last pleading re!uired or allowed under its rules.
8he &ecretary of Labor and 1mployment or his duly authori%ed representative
may supervise the payment of unpaid wages and other monetary claims and
benefits, including legal interest, found owing to any employee or househelper
under this Code. ;s amended by &ection -, 2epublic ct +o. >6.=, ?arch -.,
.454<
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. *15. J-r"#d"t"on of t!e Labor Arb"ter# and t!e Comm"##"on.
8he Labor rbiters shall have original and e"clusive jurisdiction to hear and
decide, within thirty ;0C< calendar days after the submission of the case by the
parties for decision without e"tension the following cases involving all workers,
whether agricultural or non#agricultural7
Anfair labor practice cases/
8ermination disputes/
)f accompanied with a claim for reinstatement, those cases that workers
may file involving wages, rates of pay, hours of work and other terms and
conditions of employment/
Claims for actual, moral, e"emplary and other forms of damages arising
from the employer#employee relations/
Cases arising from any violation of rticle ->, of this Code, including
!uestions involving the legality of strikes and lockouts/ and
1"cept claims for 1mployees Compensation, &ocial &ecurity, ?edicare
and maternity benefits, all other claims arising from employer#employee
relations, including those of persons in domestic or household service,
involving an amount e"ceeding five thousand pesos ;P=,CCC.CC<
regardless of whether accompanied with a claim for reinstatement.
8he Commission shall have e"clusive appellate jurisdiction over all cases
decided by Labor rbiters.
Cases arising from the interpretation or implementation of collective bargaining
agreements and those arising from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor rbiter by referring the same
to the grievance machinery and voluntary arbitration as may be provided in said
agreements.
Sta+e# "n t!e !ear"n+ of a#e#
.. Labor arbiter/ and may be appealed to
-. the +ational Labor 2elations Commission ;+L2C</ and may be appealed
to
0. the Court of ppeals ;C</ and may be appealed to
,. the &upreme Court ;&C<.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Boo% One
PRE9EMPLOCMENT
T"t$e I
RECR=IT AND PLACEMENT OF <ORDERS
C!a(ter I
GENERAL PROBISIONS
Art. 17. Def"n"t"on#
<or%er any member of the labor force, whether employed or unemployed.
Rer-"tment and ($aement any act of canvassing, enlisting, contracting,
transporting, utili%ing, hiring or procuring workers, and includes referrals, contract
services, promising or advertising for employment, locally or abroad, whether for
profit or not7 Provided, 8hat any person or entity which, in any manner, offers or
promises for a fee, employment to two or more persons shall be deemed
engaged in recruitment and placement.
+employment to t*o or more persons s#all be deemed en"a"ed in
recr&itment and placement, - this is only a matter of evidence. 8hus,
even the employment involves only one person, there is already the
engagement of recruitment and placement.
8he number of persons dealt with is not the basis in determining whether
or not an act constitutes recruitment and placement. ny of the acts
mentioned in rticle .0;b< will constitute recruitment and placement even if
only one prospective worker is involved. )n that case, a license or
authority from P91 is needed.
L"en#e means a document issued by the *epartment of Labor authori%ing a
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
person or entity to operate a private employment agency.
A-t!or"ty a document issued by the *epartment of Labor authori%ing a
person or association to engage in recruitment and placement activities as a
private recruitment entity.
Art. 1>. Ban on d"ret9!"r"n+
Genera$ R-$eA
+o employer may hire a :ilipino worker for overseas employment.
E/e(t"onA
8hrough the Doards and entities authori%ed by the &ecretary of Labor
*irect#hiring by members of the diplomatic corps, international
organi%ations and such other employers as may be allowed by the
&ecretary of Labor
REP=BLIC ACT NO. >6)*
M"+rant <or%er# and O.er#ea# F"$"("no# At of 144@
An at to "n#t"t-te t!e (o$""e# of o.er#ea# em($oyment and e#tab$"#! a
!"+!er #tandard of (rotet"on and (romot"on of t!e &e$fare of m"+rant
&or%er#3 t!e"r fam"$"e# and o.er#ea# F"$"("no# "n d"#tre##3 and for ot!er
(-r(o#e#.
SEC. *. DECLARATION OF POLICIES##
-#e (tate does not promote overseas employment as a means to
s&stain economic "ro*t# and ac#ieve national development. 8he
e"istence of the overseas employment program rests solely on the
assurance that the dignity and fundamental human rights and freedoms of
the :ilipino citi%ens shall not, at any time, be compromised or violated.
-#e (tate, t#ere$ore, s#all contin&o&sly create local employment
opport&nities and promote t#e e.&itable distrib&tion o$ *ealt# and
t#e bene$its o$ development.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
SEC. 7. DEFINITIONS
M"+rant &or%er , a person who is to be engaged, is engaged or has been
engaged in a renumerated activity in a state of which he or she is not a legal
resident to be used interchangeably with overseas :ilipino worker.
O.er#ea# F"$"("no# , dependents of migrant workers and other :ilipino
nationals abroad who are in distress as mentioned in &ections -, and -> of this
ct.
II. ILLEGAL RECR=ITMENT
Se. 1. DEFINITIONS
I$$e+a$ rer-"tment any act of canvassing, enlisting, contracting, transporting,
utili%ing, hiring, procuring workers and includes referring, contact services,
promising or advertising for employment abroad, whether for profit or not, when
&nderta/en by a non-license or non-#older o$ a&t#ority. Provided, that such
non#license or non#holder, who, in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed so engaged. 0t
s#all li/e*ise incl&de t#e $ollo*in" acts, *#et#er committed by any
persons, *#et#er a non-licensee, non-#older, licensee or #older o$
a&t#ority.
;a< -o c#ar"e or accept directly or indirectly any amo&nt "reater t#an the
specified in the schedule of allowable fees prescribed by t#e (ecretary o$
)abor and 1mployment, or to make a worker pay any amount greater than that
actually received by him as a loan or advance/
;b< -o $&rnis# or p&blis# any $alse notice or information or document in
relation to recr&itment or employment/
;c< -o "ive any $alse notice, testimony, information or document or commit
any act o$ misrepresentation for the p&rpose o$ sec&rin" a license or
a&t#ority under the Labor Code/
;d< -o ind&ce or attempt to ind&ce a *or/er already employed to .&it #is
employment in order to offer him another &nless t#e trans$er is desi"ned to
liberate a *or/er $rom oppressive terms and conditions o$ employment/
;e< -o in$l&ence or attempt to in$l&ence any persons or entity not to employ
any *or/er *#o #as not applied $or employment t#ro&"# #is a"ency/
;f< -o en"a"e in t#e recr&itment o$ placement o$ *or/ers in 'obs #arm$&l to
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
p&blic #ealt# or morality or to di"nity o$ t#e 2ep&blic o$ t#e P#ilippines/
;g< -o obstr&ct or attempt to obstr&ct inspection by t#e (ecretary o$ )abor
and 1mployment or by #is d&ly a&t#ori3ed representative/
;h< -o $ail to s&bmit reports on the status of employment, placement vacancies,
remittances of foreign e"change earnings, separations from jobs, departures and
such other matters or information as may be re.&ired by t#e (ecretary o$
)abor and 1mployment/
;i< -o s&bstit&te or alter to t#e pre'&dice o$ t#e *or/er, employment
contracts approved and veri$ied by t#e Department o$ )abor and
1mployment from the time of actual signing thereof by the parties up to and
including the period of the e"piration of the same without the approval of the
*epartment of Labor and 1mployment/
;j< 4or an o$$icer or a"ent o$ a recr&itment or placement a"ency to become
an o$$icer or member o$ t#e 5oard o$ any corporation en"a"ed in travel
a"ency or to be engaged directly on indirectly in the management of a travel
agency/
;k< -o *it##old or deny travel doc&ments $rom applicant *or/ers before
departure $or monetary or $inancial considerations other than those
authori%ed under the Labor Code and its implementing rules and regulations/
;l< 4ail&re to act&ally deploy *it#o&t valid reasons as determined by the
*epartment of Labor and 1mployment/ and
;m< 4ail&re to reimb&rse e6penses inc&rred by t#e *or/ers in connection
*it# #is doc&mentation and processin" $or p&rposes o$ deployment, in
cases where the deployment does not actually take place without the worker@s
fault.
)llegal recruitment when omm"tted by a #ynd"ate or "n $ar+e #a$e
shall be considered as offense involving eonom" #abota+e.
Synd"ate is illegal recruitment carried out by a group of three ;0< or more
persons conspiring or confederating with one another.
Lar+e #a$e is illegal recruitment committed against three ;0< or more persons
individually or as a group.
8he (er#on# criminally $"ab$e for the above offenses are the principals,
accomplices and accessories.
)n case of ;-r"d"a$ (er#on#, the o$$icers having control, management or
direction of their business shall be liable.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
n employee who was merely acting under the direction of his superiors
and was unaware that his acts constituted a crime may not be held
criminally liable.
SEC. 5. PENALTIES
;a< ny person found "&ilty o$ ille"al recr&itment shall suffer the penalty of
imprisonment o$ not less t#an si6 (7 years and one (1 day b&t not more
t#an t*elve (18 years and a $ine not less t#an t*o #&ndred t#o&sand
pesos (P800,000.00 nor more t#an $ive #&ndred t#o&sand pesos
(P500,000.00.
;b< 8he penalty of li$e imprisonment and a $ine o$ not less t#an $ive #&ndred
t#o&sand pesos (P500,000.00 nor more t#an one million pesos
(P1,000,000.00 shall be imposed if ille"al recr&itment constit&tes economic
sabota"e as defined herein.
Provided, however, that the ma"imum penalty shall be imposed if the person
illegally recruited is less than eighteen ;.5< years of age or committed by a non#
licensee or non#holder of authority.
SEC. >. PROEIBITION ON OFFICIALS AND EMPLOCEES
It #!a$$ be -n$a&f-$ forA
1. any o$$icial or employee o$ t#e Department o$ )abor and
1mployment, the Philippine 9verseas 1mployment dministration, or the
9verseas (orkers (elfare dministration, or the *epartment of :oreign
ffairs, or ot#er "overnment a"encies involved in t#e implementation
o$ t#is Act,
2. or t#eir relatives *it#in t#e $o&rt# civil de"ree o$ consan"&inity or
a$$inity, to engage, directly or indirectly, in t#e b&siness o$ recr&itin"
mi"rant *or/ers as defined in this ct. 8he penalties shall be imposed
upon them.
SEC. 4. BEN=E
A criminal action arisin" $rom ille"al recr&itment as defined herein s#all be
$iled *it# t#e 2e"ional -rial %o&rt o$ t#e province or city *#ere t#e o$$ense
*as committed or *#ere t#e o$$ended party act&ally resides at t#e same
time o$ t#e commission o$ t#e o$$ense7 Provided, 8hat the court *#ere t#e
criminal action is $irst $iled s#all ac.&ire '&risdiction to t#e e6cl&sion o$
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
ot#er co&rts. Provided, however, 8hat the aforestated provisions shall also
apply to those criminal actions that have already been filed in court at the time of
the effectivity of this ct.
SEC. 16. MONEC CLAIMS
Dut withstanding any provision of law to the contrary, t#e )abor Arbiters o$ t#e
National )abor 2elations %ommission (N)2% s#all #ave t#e ori"inal and
e6cl&sive '&risdiction to #ear and decide, within ninety ;4C< calendar days
after filing of the complaint, the claims arisin" o&t o$ an employer-employee
relations#ip or by virt&e o$ any la* or contract involvin" 4ilipino *or/ers
$or overseas deployment including claims for actual, moral, e"emplary and
other forms of damages.
8he liability of the principalEemployer and the recruitmentEplacement
agency for any and all claims under this section shall be ;o"nt and
#e.era$.
8he per$ormance bond to be filed by the recruitmentEplacement agency,
as provided by law, #!a$$ be an#&erab$e for a$$ money $a"m# or
dama+e# that may be awarded to the workers.
&uch liabilities s#all contin&e during the entire period or duration of the
employment contract and shall not be a$$ected by any substitution,
amendment or modi$ication made locally or in a foreign country o$ t#e
said contract.
ny compromise9amicable settlement or voluntary agreement on
money claims inclusive of damages under this section s#all be paid
*it#in $o&r (4 mont#s $rom t#e approval of the settlement by the
appropriate authority.
)n case of term"nat"on of o.er#ea# em($oyment &"t!o-t ;-#t, valid or
authori%ed ca&se as defined by law or contract, t#e *or/ers s#all be
entitled to t#e $&ll reimb&rsement o$ #is placement $ee *it# interest
o$ t*elve percent (18: per ann&m, pl&s #is salaries $or t#e
&ne6pired portion o$ #is employment contract or $or t#ree (; mont#s
$or every year o$ t#e &ne6pired term, *#ic#ever is less.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
+on#compliance with the mandatory periods for resolutions of cases
provided under this section shall subject the responsible officials to any or
all of the following penalties7
;a< 8he salary of any such official who fails to render his decision or resolutions
within the prescribed period shall be, or caused to be, withheld until the said
official complies therewith/
;b< &uspension for not more than ninety ;4C< days/ or
;c< *ismissal from the service with dis!ualifications to hold any appointive public
office for five ;=< years.
SEC. 1*. PRESCRIPTIBE PERIODS
)llegal recruitment cases under this ct shall prescribe in f".e 0@2 year#7
Provided, however, 8hat illegal recruitment cases "n.o$."n+ eonom"
#abota+e as defined herein shall prescribe in t&enty 0*62 year#.
SEC. 1@. REPATRIATION OF <ORDERSF EMERGENCC REPATRIATION
F=ND
8he repatriation of the worker and the transport of his personal belongings
shall be the primary responsibility of the agency which recruited or
deployed the worker overseas. All costs attendant to repatriation s#all
be borne by or c#ar"ed to t#e a"ency concerned and9or its principal.
Likewise, the repatriation of remains and transport of the personal
belongings of a deceased worker and all costs attendant thereto shall be
borne by the principal andEor local agency.
Fowever, in cases *#ere t#e termination o$ employment is d&e solely
to t#e $a&lt o$ t#e *or/er, t#e principal9employer or a"ency s#all not
in any manner be responsible $or t#e repatriation o$ t#e $ormer and9or
#is belon"in"s.
-#e <verseas =or/ers =el$are Administration (<==A, in
coordination *it# appropriate international a"encies, s#all &nderta/e
t#e repatriation o$ *or/ers in cases o$ *ar, epidemic, disasters or
calamities, nat&ral or man-made, and ot#er similar events without
prejudice to reimbursement by the responsible principal or agency.
Fowever, in cases where the principal or recruitment agency cannot be
identified, all costs attendant to repatriation shall be borne by the 9((.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Parties to overseas employment contracts are allowed to agree on terms
and conditions, but the stipulations should not contradict Philippine law,
public policy and morals.
8he (elfare :und for 9verseas (orkers dministration ;9((< was
intended to provide social welfare services.
-#e principal a"ency #as to advance t#e air transport $are to the
Philippines and immediately bring back the workers, as needed. 0$ t#e
ca&se o$ termination is d&e solely to t#e $a&lt o$ t#e *or/er, t#e
principal or a"ency may recover t#e cost o$ repatriation $rom t#e
*or/er a$ter ret&rn to t#e co&ntry. 8hey cannot remain stranded in a
foreign land just because of a pending legal proceeding 0E8-"9A#"a
P$aement In. .#. DFA and DOLE3 GR No. 1@**1)3 Se(tember 143
*6612.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter II
REG=LATION OF RECR=ITMENT AND
PLACEMENT ACTIBITIES
Art. *@. Pr".ate #etor (art""(at"on "n t!e rer-"tment and
($aement of &or%er#.
-#e private employment sector s#all participate in t#e recr&itment and
placement of workers, locally and overseas, &nder s&c# "&idelines, r&les and
re"&lations as may be issued by the &ecretary of Labor.
Art. *1. Tra.e$ a+en"e# (ro!"b"ted to rer-"t.
8ravel agencies and sales agencies of airline companies are prohibited from
engaging in the business of recruitment and placement of workers for overseas
employment whether for profit or not.
Art. *5. C"t":en#!"( re8-"rement.
9nly :ilipino citi%ens or corporations, partnerships or entities at least seventy-
$ive percent (75: o$ t#e a&t#ori3ed and votin" capital stoc/ of which is
owned and controlled by 4ilipino citi3ens shall be permitted to participate in
the recruitment and placement of workers, locally or overseas.
Art. *>. Ca("ta$":at"on.
ll applicants for authority to hire or renewal of license to recruit are re!uired to
have such substantial capitali3ation as determined by t#e (ecretary o$ )abor.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. *4. Non9tran#ferab"$"ty of $"en#e or a-t!or"ty.
No license or a&t#ority s#all be &sed directly or indirectly by any person ot#er
t#an t#e one in *#ose $avor it *as iss&ed or at any place ot#er t#an t#at
stated in t#e license or a&t#ority be transferred, conveyed or assigned to any
other person or entity. ny trans$er of business address, appointment or
designation of any agent or representative including the establishment of
additional offices anywhere s#all be s&b'ect to t#e prior approval o$ t#e
Department o$ )abor.
Art. 76. Re+"#trat"on fee#.
-#e (ecretary o$ )abor s#all prom&l"ate a sc#ed&le o$ $ees for the
registration of all applicants for license or authority.
Art. 71. Bond#.
All applicants $or license or a&t#ority s#all post s&c# cas# and s&rety
bonds as determined by t#e (ecretary o$ )abor to "&arantee compliance
with prescribed recruitment procedures, rules and regulations, and terms and
conditions of employment as may be appropriate.
Art. 7*. Fee# to be (a"d by &or%er#.
Any person applyin" with a private fee#charging employment agency for
employment assistance s#all not be c#ar"ed any $ee &ntil #e #as obtained
employment through its efforts or has actually commenced employment. (&c#
$ee s#all be al*ays covered *it# t#e appropriate receipt clearly showing the
amount paid. 8he &ecretary of Labor shall promulgate a schedule of allowable
fees.
Art. 77. Re(ort# on em($oyment #tat-#.
=#enever t#e p&blic interest re.&ires, t#e (ecretary o$ )abor may direct all
persons or entities within the coverage of this 8itle to s&bmit a report on the
status of employment, including job vacancies, details of job re!uisitions,
separation from jobs, wages, other terms and conditions and other employment
data.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. 7). Pro!"b"ted (rat"e#.
8hese prohibited acts constitutes illegal recruitment as redefined by 2
+o. 5C,-.
Art. 7@. S-#(en#"on andGor ane$$at"on of $"en#e or a-t!or"ty.
-#e >inister o$ )abor s#all #ave t#e po*er to s&spend or cancel any
license or a&t#ority to recruit employees for overseas employment for violation
of rules and regulations issued by the ?inistry of Labor, the 9verseas
1mployment *evelopment Doard, or for violation of the provisions of this and
other applicable laws, 'eneral 9rders and Letters of )nstructions.
recruitment agency is solidarily liable for the unpaid salaries of a worker
it recruited for employment with foreign principal.
1ven if the recruitment agency and the principal had already ended their
agency agreement at the tim the worker was injured, the recruitment
agency may still be sued for violation of the employment contract, if no
notice of the agency agreement@s termination was given to the employee.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter III
MISCELLANEO=S PROBISIONS
Art. 71. Re+-$atory (o&er.
-#e (ecretary o$ )abor s#all #ave t#e po*er to restrict and re"&late t#e
recr&itment and placement activities o$ all a"encies within the coverage of
this 8itle and is hereby authori%ed to issue orders and promulgate rules and
regulations to carry out the objectives and implement the provisions of this 8itle.
Art. 75. B"#"tor"a$ Po&er.
-#e (ecretary o$ )abor or #is d&ly a&t#ori3ed representatives may, at any
time, inspect t#e premises, boo/s o$ acco&nts and records o$ any person or
entity covered by this 8itle, re.&ire it to s&bmit reports re"&larly on
prescribed $orms, and act on violation o$ any provisions o$ t#is -itle.
Art. 7>. I$$e+a$ rer-"tment.
&uch acts are already contained in 2 +o. 5C,-.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
T"t$e II
EMPLOCMENT OF NON9RESIDENT ALIENS
Art. )6. Em($oyment (erm"t of non9re#"dent a$"en#.
ny alien seeking admission to the Philippines for employment purposes and any
domestic or foreign employer who desires to engage an alien for employment in
the Philippines shall obtain an employment permit from the *epartment of Labor.
-#e employment permit may be iss&ed to a non-resident alien or to t#e
applicant employer a$ter a determination o$ t#e non-availability o$ a person
in t#e P#ilippines *#o is competent, able and *illin" at the time of
application to perform the services for which the alien is desired.
4or an enterprise re"istered in preferred areas of investments, said
employment permit may be iss&ed &pon recommendation o$ t#e
"overnment a"ency c#ar"ed *it# t#e s&pervision o$ said re"istered
enterprise.
Art. )1. Pro!"b"t"on a+a"n#t tran#fer of em($oyment
fter the issuance of an employment permit, the alien s#all not trans$er to
anot#er 'ob or c#an"e #is employer *it#o&t prior approval o$ t#e (ecretary
o$ )abor.

ny non#resident alien who shall take up employment in violation of the
provision of this 8itle and its implementing rules and regulations s#all be
p&nis#ed in accordance *it# t#e provisions o$ Articles 8?9 and 890 o$ t#e
)abor %ode.
)n addition, t#e alien *or/er s#all be s&b'ect to deportation a$ter service o$
#is sentence.
Art. )*. S-bm"##"on of $"#t.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Any employer employin" non-resident $orei"n nationals on the effective date
of this Code s#all s&bmit a list o$ s&c# nationals to t#e (ecretary o$ )abor
*it#in t#irty (;0 days """". 8he &ecretary of Labor shall then determine if they
are entitled to an employment permit.
Perm"t# to be "##-edA
Alien 1mployment Permit (A1P for non#resident alien
Alien 1mployment 2e"istration %erti$icate (A12% for resident alien
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
BOOD T<O
E=MAN RESO=RCES DEBELOPMENT PROGRAM
T"t$e II
TRAINING AND EMPLOCMENT OF SPECIAL
<ORDERS
C!a(ter I
APPRENTICES
Art. @>. Def"n"t"on of Term#.
A((rent"e#!"( practical training on the job supplemented by related
theoretical instruction.
A((rent"e is a worker who is covered by a written apprenticeship agreement
with an individual employer or any of the entities recogni%ed under this Chapter.
A((rent"eab$e o-(at"on any trade, form of employment or occupation
which re!uires more than three ;0< months of practical training on the job
supplemented by related theoretical instruction.
Art. @4. H-a$"f"at"on# of a((rent"e.
;a< De at least fourteen ;.,< years of age/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;b< Possess vocational aptitude and capacity for appropriate tests/ and
;c< Possess the ability to comprehend and follow oral and written instructions.
Art. 16. Em($oyment of a((rent"e#.
9nly employers in the highly technical industries may employ apprentices and
only in apprenticeable occupations approved by the &ecretary of Labor and
1mployment.
Art. 11. Content# of a((rent"e#!"( a+reement#.
pprenticeship agreements, including the wage rates of apprentices, shall
conform to the rules issued by the &ecretary of Labor and 1mployment. -#e
period o$ apprentices#ip s#all not e6ceed si6 mont#s. pprenticeship
agreements providing for wage rates below the legal minim&m *a"e, which in
no case s#all start belo* 75 percent o$ t#e applicable minim&m *a"e, may
be entered into only in accordance with apprenticeship programs duly approved
by the &ecretary of Labor and 1mployment. 8he *epartment shall develop
standard model programs of apprenticeship.
Art. 1@. In.e#t"+at"on of ."o$at"on of a((rent"e#!"( a+reement.
@pon complaint o$ any interested person or &pon its o*n initiative, t#e
appropriate a"ency o$ t#e Department o$ )abor and 1mployment or its
a&t#ori3ed representative s#all investi"ate any violation o$ an
apprentices#ip a"reement pursuant to such rules and regulations as may be
prescribed by the &ecretary of Labor and 1mployment.
Art. 11. A((ea$ to t!e Seretary of Labor and Em($oyment.
8he decision of the authori%ed agency of the *epartment of Labor and
1mployment may be appealed by any aggrieved person to the &ecretary of
Labor and 1mployment within five ;=< days from receipt of the decision. -#e
decision o$ t#e (ecretary o$ )abor and 1mployment s#all be $inal and
e6ec&tory.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. 15. E/!a-#t"on of adm"n"#trat".e remed"e#.
+o person shall institute any action for the enforcement of any apprenticeship
agreement or damages for breach of any such agreement, unless he has
e"hausted all available administrative remedies.
Art. 56. Bo$-ntary or+an":at"on of a((rent"e#!"( (ro+ram#F
e/em(t"on#.
Genera$ r-$eA
8he organi%ation of apprenticeship program shall be primarily a voluntary
undertaking by employers/
1"ceptions7
(a) =#en national sec&rity or partic&lar re.&irements o$ economic
development so demand, the ,resident of the ,hilippines (ay re4$ire
co(p$lsory trainin* of apprentices in certain trades, occupations, jobs or
employment levels where shortage of trained manpower is deemed critical
as deter(ined by the Secretary of Labor and 2(ploy(ent. ppropriate
rules in this connection shall be promulgated by the &ecretary of Labor
and 1mployment as the need arises/ and
(b) =#ere services o$ $orei"n tec#nicians are &tili3ed by private
companies in apprenticeable trades, said companies are re!uired to set
up appropriate apprenticeship programs.
Art. 51. Ded-t"b"$"ty of tra"n"n+ o#t#
n additional deduction from ta"able income of one-#al$ (198 of the value of
labor training e"penses incurred for developing the productivity and efficiency of
apprentices shall be granted to the person or enterprise organi%ing an
apprenticeship program7
Provided7 8hat such pro"ram is d&ly reco"ni3ed by t#e Department o$
)abor and 1mployment7
Provided, further, 8hat such ded&ction s#all not e6ceed ten (10:
percent o$ direct labor *a"e7 and
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Provided, finally, 8hat t#e person or enterprise *#o *is#es to
avail himself or itself of this incentive should pay #is apprentices
t#e minim&m *a"e.
Art. 5*. A((rent"e# &"t!o-t om(en#at"on.
8he &ecretary of Labor and 1mployment may authori%e the #irin" o$
apprentices *it#o&t compensation
;a< whose training on the job is re!uired by
the school or
training program curriculum
;b< or as re!uisite for
graduation or
board e"amination.
Note#A
)n relation to rt. 6-, the )mplementing 2ules provide that t#ere is no
employer-employee relations#ip bet*een st&dents on one hand, and
sc#ools on the other, *#ere t#ere is *ritten a"reement under which the
former agree to work for the latter in e"change for the privilege to study
free of charge, provided t#e st&dents are "iven real opport&nities to
$inis# t#eir c#osen co&rses under such agreement.
Fowever, in the case of F"$amer C!r"#t"an In#t"t-te .#. Eon.
Intermed"ate A(e$$ate Co-rt3 et. a$.3 '2 +o. 6=..-, ugust .6, .44-, the
&upreme Court that the applicable law was rt. -.5C of the Civil Code and
not the Labor Code@s implementing rule. @nder Art. 81?0, an in'&red
party s#all #ave reco&rse a"ainst t#e servant as *ell as t#e
petitioners sc#ool $or *#om, at t#e time o$ incident, t#e servant *as
per$ormin" an act in $&rt#erance o$ t#e interest and $or t#e bene$it o$
t#e sc#ool.
Fo-r9Fo$d Te#t "n Determ"n"n+ Em($oyer9Em($oyee Re$at"on#!"(
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
.. the selection and engagement of the employee
-. the payment of wages
0. the power of dismissal
,. the employer@s power to control with respect to the means and methods by
which the work is to be accomplished ;Drotherhood vs. Gamora<

CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter II
LEARNERS
Art. 57. Learner# def"ned.
Learner# , persons hired as trainees in semi#skilled and other industrial
occupations which are non#apprenticeable and which may be learned through
practical training on the job in a relatively short period of time which shall not
e"ceed three ;0< months.
Art. 5). <!en $earner# may be !"red.
Learners may be employed when7
.. +o e"perienced workers are available/
-. 8he employment of learners is necessary to prevent curtailment of
employment opportunities/ and,
0. 8he employment does not create unfair competition in terms of labor costs
or impair or lower working standards.
Art. 5@. Learner#!"( a+reement.
Any employer desirin" to employ learners s#all enter into a learners#ip
a"reement with them, which agreement shall include7
8he names and addresses o$ t#e learners/
8he d&ration of the learnership period, which shall not e6ceed t#ree (;
mont#s/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
8he *a"es or salary rates of the learners which shall begin at not less
t#an seventy-$ive percent (75: o$ t#e applicable minim&m *a"e/ and
commitment to employ t#e learners i$ t#ey so desire, as regular
employees &pon completion o$ t#e learners#ip.
All learners *#o #ave been allo*ed or s&$$ered to *or/ d&rin" t#e $irst t*o
(8 mont#s s#all be deemed re"&lar employees i$ trainin" is terminated by
t#e employer be$ore t#e end o$ t#e stip&lated period t#ro&"# no $a&lt o$ t#e
learners.
8he learners#ip a"reement s#all be s&b'ect to inspection by t#e (ecretary
o$ )abor and 1mployment or his duly authori%ed representative.
Art. 51. Learner# "n ("ee&or%.
)earners employed in piece or incentive-rate 'obs during the training period
s#all be paid in $&ll $or t#e *or/ done.
Art. 55. Pena$ty $a-#e.
ny violation of this Chapter or its implementing rules and regulations shall be
s&b'ect to t#e "eneral penalty cla&se provided for in t#is %ode.
Learner#!"( .#. A((rent"e#!"(
Learner#!"( A((rent"e#!"(
(imilaritiesA
Doth mean training periods for
jobs re!uiring re!uiring skills
that can be ac!uired through
actual work e"perience
Doth may be paid wages twenty#
five percent lower than the
applicable minimum wage
(imilaritiesA
Doth mean training periods for
jobs re!uiring re!uiring skills that
can be ac!uired through actual
work e"perience
Doth may be paid wages twenty#
five percent lower than the
applicable minimum wage
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
DistinctionsA
learner trains in semi#skilled
job or in industrial occupations
that re!uire
llowed even for non technical
jobs
8raining shall not e"ceed three
months
learner is not an apprentice
n employer is committed to
hire the learner#trainee as an
employee after the training
period
DistinctionsA
n apprentice trains in a highly
skilled job or in a job found only
in highly technical industry
llowed only in highly technical
industries
8raining e"ceeds three months
Conceptually, an apprentice is
also a learner
)n apprenticeship, no such
commitment e"ists
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter III
EANDICAPPED <ORDERS
Art. 5>. Def"n"t"on.
Eand"a((ed &or%er# those whose earning capacity is impaired by age or
physical or mental deficiency or injury.
Art. 54. <!en em($oyab$e.
Fandicapped workers may be employed7
.. (hen their employment is necessary to prevent curtailment of
employment opportunities/ and,
-. (hen it does not create unfair competition in labor costs or impair or lower
working standards.
Art. >6. Em($oyment a+reement.
ny employer who employs handicapped workers shall enter into an employment
agreement with them, which agreement shall include7
8he names and addresses o$ t#e #andicapped *or/ers to be
employed/
8he rate to be paid the handicapped workers which shall not be less
t#an seventy $ive (75: percent o$ t#e applicable le"al minim&m
*a"e/
8he d&ration o$ employment period/ and
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
8he *or/ to be per$ormed by #andicapped *or/ers.
8he employment a"reement s#all be s&b'ect to inspection by t#e (ecretary
o$ )abor or his duly authori%ed representative.
Art. >1. E$"+"b"$"ty for a((rent"e#!"(.
&ubject to the appropriate provisions of this Code, !and"a((ed &or%er# may
be !"red a# apprentices or learners "fA
t#eir #andicap is not s&c# as to e$$ectively impede t#e per$ormance
o$ 'ob operations in t#e partic&lar occ&pations $or *#ic# t#ey are
#ired.
Art. 17@. D"#r"m"nat"on (ro!"b"ted.
)t shall be &nla*$&l $or any employer to discriminate a"ainst any *oman
employee with respect to terms and conditions of employment solely on
acco&nt o$ #er se6.
Art. 171. St"(-$at"on a+a"n#t marr"a+e.
)t shall be &nla*$&l $or an employer to re.&ire as a condition o$ employment
or contin&ation o$ employment t#at a *oman employee s#all not "et
married, or to stipulate e"pressly or tacitly that upon getting married, a woman
employee shall be deemed resigned or separated, or to actually dismiss,
discharge, discriminate or ot#er*ise pre'&dice a *oman employee merely
by reason o$ #er marria"e.
Art. 174. M"n"m-m em($oyab$e a+e.
;a< +o child below fifteen ;.=< years of age shall be employed, e"cept when
he works directly under the sole responsibility of his parents or guardian,
and his employment does not in any way interfere with his schooling.
;b< ny person between fifteen ;.=< and eighteen ;.5< years of age may be
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
employed for such number of hours and such periods of the day as
determined by the &ecretary of Labor and 1mployment in appropriate
regulations.
;c< 8he foregoing provisions shall in no case allow the employment of a
person below eighteen ;.5< years of age in an undertaking which is
ha%ardous or deleterious in nature as determined by the &ecretary of
Labor and 1mployment.
Art. 1)6. Pro!"b"t"on a+a"n#t !"$d d"#r"m"nat"on.
No employer s#all discriminate against any person in respect to terms and
conditions of employment on acco&nt o$ #is a"e.
REP=BLIC ACT NO. 4*71
La& E$"m"nat"n+ t!e <or#t Form# of C!"$d Labor
Set"on *. &ection .- of the same ct, as amended, is hereby further amended
to read as follows7
'Se. *. 1mployment o$ %#ildren 9
Genera$ R-$eA Children below fifteen ;.=< years of age shall not be employed
e/e(tA
.. =#en a c#ild *or/s directly &nder t#eA ;a< sole responsibility o$ #is9#er
parents or le"al "&ardian and ;b< *#ere only members o$ #is9#er $amily are
employed7 ,rovided, ho0ever, 8hat hisEher ;c< employment neit#er endan"ers
#is9#er li$e, sa$ety, #ealt#, and morals, nor impairs #is9#er normal
development7 ,rovided, f$rther, 8hat ;d< t#e parent or le"al "&ardian s#all
provide t#e said c#ild *it# t#e prescribed primary and9or secondary
ed&cation/ or
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
-. =#ere a c#ildBs ;a< employment or participation in p&blic entertainment
or in$ormation t#ro&"# cinema, t#eater, radio, television or ot#er $orms o$
media is essential7 ,rovided, 8hat the ;b< employment contract is concl&ded
by t#e c#ildBs parents or le"al "&ardian, ;c< *it# t#e e6press a"reement o$
t#e c#ild concerned, i$ possible, and the ;d< approval o$ t#e Department o$
)abor and 1mployment7 Provided, $&rt#er, -#at t#e ;e< $ollo*in"
re.&irements in all instances are strictly complied *it#A
H;a< 8he employer s#all ens&re t#e protection, #ealt#, sa$ety, morals and
normal development o$ t#e c#ild/
H;b< 8he employer s#all instit&te meas&res to prevent t#e c#ildBs
e6ploitation or discrimination taking into account the system and level of
remuneration, and the duration and arrangement of working time/ and
H;c< 8he employer s#all $orm&late and implement, subject to the approval and
supervision of competent authorities, a contin&in" pro"ram $or trainin" and
s/ills ac.&isition o$ t#e c#ild.
H0n t#e above-e6ceptional cases where any such child may be employed, t#e
employer s#all $irst sec&re, be$ore en"a"in" s&c# c#ild, a *or/ permit $rom
t#e Department o$ )abor and 1mployment which shall ensure observance of
the above re!uirements.
H:or purposes of this rticle, the term
C!"$d shall apply to all persons under eighteen ;.5< years of age.$
Set"on 7. 8he same ct, as amended, is hereby further amended by adding
new sections to be denominated as &ections .-#, .-#D, .-#C, and .-#* to read
as follows7
'Se. *9A. Co&rs o$ =or/ o$ a =or/in" %#ild. # Ander the e"ceptions provided
in &ection .- of this ct, as amended7
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
H;.< child belo* $i$teen (15 years o$ a"e may be allowed to work for not
more t#an t*enty (80 #o&rs a *ee/7 Provided, 8hat the *or/ s#all not be
more t#an $o&r (4 #o&rs at any "iven day/
H;-< child $i$teen (15 years o$ a"e b&t belo* ei"#teen (1? shall not be
allowed to work $or more t#an ei"#t (? #o&rs a day, and in no case beyond
$orty (40 #o&rs a *ee//
;0< No c#ild belo* $i$teen (15 years o$ a"e s#all be allo*ed to *or/
bet*een ei"#t oBcloc/ in t#e evenin" and si6 oBcloc/ in t#e mornin" o$ t#e
$ollo*in" day and no c#ild $i$teen (15 years o$ a"e b&t belo* ei"#teen (1?
s#all be allo*ed to *or/ bet*een ten oBcloc/ in t#e evenin" and si6 oBcloc/
in t#e mornin" o$ t#e $ollo*in" day.
'Se. 1*9D. Pro#ibition A"ainst =orst 4orms o$ %#ild )abor. # +o child shall
be engaged in the worst forms of child labor. 8he phrase Hworst forms of child
laborH shall refer to any of the following7
H;.< All $orms o$ slavery, as de$ined &nder t#e DAnti-tra$$ic/in" in Persons
Act o$ 800;D, or practices similar to slavery such as sale and trafficking of
children, debt bondage and serfdom and forced or compulsory labor, including
recruitment of children for use in armed conflict/ or
H;-< -#e &se, proc&rin", o$$erin" or e6posin" o$ a c#ild $or prostit&tion, $or
t#e prod&ction o$ porno"rap#y or $or porno"rap#ic per$ormances/ or
H;0< -#e &se, proc&rin" or o$$erin" o$ a c#ild $or ille"al or illicit activities,
including the production and trafficking of dangerous drugs and volatile
substances prohibited under e"isting laws/ or
H;,< =or/ *#ic#, by its nature or the circumstances in which it is carried out, is
#a3ardo&s or li/ely to be #arm$&l to t#e #ealt#, sa$ety or morals o$ c#ildren,
such that it7
Ha< *ebases, degrades or demeans the intrinsic worth and dignity of a child as a
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
human being/ or
Hb< 1"poses the child to physical, emotional or se"ual abuse, or is found to be
highly stressful psychologically or may prejudice morals/ or
Hc< )s performed underground, underwater or at dangerous heights/ or
Hd< )nvolves the use of dangerous machinery, e!uipment and tools such as
power#driven or e"plosive power#actuated tools/ or
He< 1"poses the child to physical danger such as, but not limited to the
dangerous feats of balancing, physical strength or contortion, or which re!uires
the manual transport of heavy loads/ or
Hf< )s performed in an unhealthy environment e"posing the child to ha%ardous
working conditions, elements, substances, co#agents or processes involving
ioni%ing, radiation, fire, flammable substances, no"ious components and the like,
or to e"treme temperatures, noise levels, or vibrations/ or
Hg< )s performed under particularly difficult conditions/ or
Hh< 1"poses the child to biological agents such as bacteria, fungi, viruses,
proto%oans, nematodes and other parasites/ or
Hi< )nvolves the manufacture or handling of e"plosives and other pyrotechnic
products.H
Set"on @. &ection ., of the same ct is hereby amended to read as follows7
'Se. 1). Pro#ibition on t#e 1mployment o$ %#ildren in %ertain
Advertisements. #
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
No c#ild s#all be employed as a model in any advertisement directly or
indirectly promotin" alco#olic bevera"es, into6icatin" drin/s, tobacco and
its byprod&cts, "amblin" or any $orm o$ violence or porno"rap#y.H
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
BOOD TEREE
CONDITIONS OF EMPLOCMENT
T"t$e I
<ORDING CONDITIONS AND REST PERIODS
C!a(ter I
EO=RS OF <ORD
Art. >*. Co.era+e.
8he provisions of this 8itle
Genera$ R-$eA (orking Conditions and rest periods shall apply to employees in
all establishments and undertakings whether for profit or not.
E/e(t"on#A
.. government employees
-. managerial employees
0. non#agricultural field personnel
,. officers or members of managerial staff
=. domestic helpers and persons in the personal service of another, and
>. workers who are paid by results
Mana+er"a$ em($oyee# 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.
F"e$d (er#onne$ those non#agricultural employees who regularly perform their
duties away from the principal place of business or branch office of the employer
and whose actual hours of work in the field cannot be determined with
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
reasonable certainty.
Art. >7. Norma$ !o-r# of &or%.
8he normal #o&rs o$ *or/ of any employee shall not e6ceed ei"#t (? #o&rs a
day.
Genera$ R-$e a(($"ab$e to !ea$t! (er#onne$A Fealth personnel in cities and
municipalities with a population of at least one million ;.,CCC,CCC< or in hospitals
and clinics with a bed capacity of at least one hundred ;.CC< shall hold regular
office hours for eight ;5< hours a day, for five ;=< days a week, e"clusive of time
for meals,
E/e(t"onA (here the e6i"encies o$ t#e service re!uire that such personnel
work for si6 (7 days or $orty-ei"#t (4? #o&rs, in which case, they shall be
entitled to an additional compensation o$ at least t#irty percent (;0: o$
t#eir re"&lar *a"e $or *or/ on t#e si6t# day.
Cealt# personnel for the purpose of rt. 05 of the Labor Code, they incl&de
resident p#ysicians, n&rses, n&tritionists, dietitians, p#armacists, social
*or/ers, laboratory tec#nicians, paramedical tec#nicians, psyc#olo"ists,
mid*ives, attendants and all ot#er #ospital or clinic personnel.
Art. >). Eo-r# &or%ed.
Co&rs *or/ed shall incl&de7
;a< all time during which an employee is re!uired to be on duty or to be at a
prescribed workplace/ and
;b< all time during which an employee is suffered or permitted to work.
;c< 2est periods of short duration during working hours.
2est periods o$ s#ort d&ration d&rin" *or/in" #o&rs s#all be co&nted as
#o&rs *or/ed.
Com(re##ed <or% <ee%
2esorted to by the employer to prevent serious losses due to causes
beyond his control.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
)nstead of working > days a week, the employees will be regularly working
for less than > days but each workday e"ceeds 5 hours. :or the hours
e"ceeding 5 in a workday, the employees waive their 98 pay because, in
return, they will no longer incur transport and other e"penses.
llowed on condition that it is freely agreed upon between the employer
and majority of the employees. :urther, the arrangement should not
diminish the employees@ monthly or daily pay or their established
employment benefits.
1"tended workday in C(( should not e"ceed .- work hours. (ork
e"ceeding .- hrs in a day or ,5 hrs in a week should be considered 98.
<a"t"n+ T"me
;a< (aiting time spent by an employee shall be considered as working time if7
waiting is an integral part of his work, or
the employer is re!uired or engaged by the employer to wait.
;b< (orking while on call an employee who is re!uired to remain on call in
the employer@s premises or so close thereto that he cannot use the time
effectively and gainfully for his own purpose.
Art. >@. Mea$ (er"od#.
&ubject to such regulations as the &ecretary of Labor may prescribe, it shall be
the duty of every employer to give his employees not less t#an si6ty (70
min&tes time-o$$ for their re"&lar meals.
Genera$ R-$eA Not less t#an 1 #o&r time-o$$ for regular meals is non-
compensable.
E/e(tA ?eal period of not less t#an 80 min&tes in the following cases is
compensable hours worked.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
(a) (here the *or/ is nonman&al work in nature or does not involve
stren&o&s p#ysical e6ertion/
(b) (here the establis#ment regularly operates not less t#an si6teen
#o&rs a day/
(c) )n cases of act&al or impendin" emer"encies or t#ere is &r"ent *or/
to be performed on machineries, e!uipment or installations to avoid
serious loss which the employer would otherwise suffer/ and,
(d) (here the work is necessary to prevent serio&s loss o$ peris#able
"oods.
2est periods or co$$ee brea/s running from = to -C minutes are
considered as compensable *or/in" time.
8o shorten meal time to less than -C minutes is not allowed. )f the so#
called meal time$ is less than -C minutes, it becomes only a rest period.
Art. >1. N"+!t #!"ft d"fferent"a$.
1very employee shall be paid a ni"#t s#i$t di$$erential of not less t#an ten
percent (10: o$ #is re"&lar *a"e $or eac# #o&r o$ *or/ per$ormed
bet*een ten oEcloc/ in t#e evenin" and si6 oEcloc/ in t#e mornin".
)f work done between .C pm and > am is 98 work, the +&* should be
based on the 98 rate.
Em($oyee# Not Co.ered by N"+!t S!"ft D"fferent"a$
.. government employees/
-. retail and service establishments regularly employing not more than five
;=< workers/
0. managerial employees/
,. field personnel and other employees whose time and performance is
unsupervised by the employer/ and,
=. domestic helpers, and persons in the personal service of another.
Art. >5. O.ert"me &or%.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
(ork may be performed beyond eight ;5< hours a day provided that the
employee is paid for the overtime *or/, an additional compensation
e.&ivalent to #is re"&lar *a"e pl&s at least t*enty-$ive percent (85:
t#ereo$. (ork performed beyond ei"#t #o&rs on a #oliday or rest day s#all
be paid an additional compensation e.&ivalent to t#e rate o$ t#e $irst ei"#t
#o&rs on a #oliday or rest day pl&s at least t#irty percent (;0: t#ereo$.
Art. >>. =ndert"me not off#et by o.ert"me.
@ndertime *or/ on any particular day s#all not be o$$set by overtime *or/ on
any other day. Permission given to the employee to go on leave on some other
day of the week shall not e"empt the employer from paying the additional
compensation re!uired in this Chapter.
Rea#onA 9ffsetting the undertime hours against 98 hours would result in undue
deprivation o$ t#e employeeBs e6tra pay $or <- *or/.
2i"#t to <- cannot be *aived. 5&t when the alleged waiver of 98 pay
is in consideration o$ bene$its and privile"es *#ic# may even e6ceed
t#e <- pay, t#e *aiver may be permitted.
Art. >4. Emer+eny o.ert"me &or%.
ny employee may be re.&ired by the employer to per$orm overtime *or/ in
any o$ t#e $ollo*in" casesA
1. (hen t#e co&ntry is at *ar or *#en any ot#er national or local
emer"ency has been declared by the +ational ssembly or the Chief
1"ecutive/
2. (hen it is necessary to prevent loss o$ li$e or property or in case o$
imminent dan"er to p&blic sa$ety due to an actual or impending
emergency in the locality caused by serious accidents, fire, flood, typhoon,
earth!uake, epidemic, or other disaster or calamity/
3. (hen there is &r"ent *or/ to be per$ormed on mac#ines, installations,
or e!uipment, in order to avoid serio&s loss or dama"e to t#e
employer or some other cause of similar nature/
4. (hen the work is necessary to prevent loss or dama"e to peris#able
"oods/ and,
5. =#ere t#e completion or contin&ation o$ t#e *or/ started be$ore t#e
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
ei"#t# #o&r is necessary to prevent serio&s obstr&ction or pre'&dice
to t#e b&siness or operations of the employer.
6. (hen overtime work is necessary to avail o$ $avorable *eat#er or
environmental conditions where performance or !uality or work is
dependent thereon.
ny employee re!uired to render overtime *or/ under this rticle s#all be paid
t#e additional compensation re!uired in this Chapter.
Art. 46. Com(-tat"on of add"t"ona$ om(en#at"on.
4or p&rposes o$ comp&tin" overtime and ot#er additional rem&neration as
re!uired by this Chapter, the Dre"&lar *a"eD of an employee s#all incl&de t#e
cas# *a"e only, without deduction on account of facilities provided by the
employer.
Re+-$ar <a+e includes the cash wage only, without deduction on account of
facilities provided by the employer.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter II
<EEDLC REST PERIODS
Art. 41. R"+!t to &ee%$y re#t day.
0t s#all be t#e d&ty o$ every employer, *#et#er operatin" $or pro$it or not, to
provide eac# o$ #is employees a rest period o$ not less t#an t*enty-$o&r
(84 consec&tive #o&rs a$ter every si6 (7 consec&tive normal *or/ days.
8he employer shall determine and schedule the weekly rest day of his
employees subject to collective bargaining agreement and to such rules and
regulations as the &ecretary of Labor and 1mployment may provide. Fowever,
the employer shall respect the preference of employees as to their weekly rest
day when such preference is based on religious grounds.
5&siness on (&ndays9Colidays # all establishments and enterprises
may operate or open for business on &unday and Folidays provided that
the employees are given the weekly rest day and the befits as provided in
this 2ule.
=ee/ly 2est Day every employer shall give his employees a rest period
of not less than -, consecutive hours after every si" consecutive normal
work days.
Pre$erence o$ employee the preference of the employee as to his
weekly day of rest shall be respected by the employer if the same is
based on reli"io&s "ro&nds.
8he employee shall make /no*n #is pre$erence to the employer in
*ritin" at least 7 days be$ore t#e desired e$$ectivity of the initial
rest day so preferred.
(here, #o*ever, the choice of the employee as to his rest day based
on religious grounds will inevitably result in serio&s pre'&dice or
obstr&ction to t#e operations of the undertaking and the employer
cannot normally be e"pected to resort to other remedial measures, t#e
employer may so sc#ed&le t#e *ee/ly rest day o$ #is c#oice $or
at least 8 days in a mont#.
(c#ed&les o$ 2est Day shall be made known to the employees through
*ritten notices posted conspicuously in the work place at least one
*ee/ be$ore t#ey become e$$ective.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. 4*. <!en em($oyer may re8-"re &or% on a re#t day.
Genera$ R-$eA 8he employer cannot compel employees to work on a rest day.
E/e(t"on#A 8he employer may re!uire his employees to work on any day7
1. )n case of act&al or impendin" emer"encies caused by serious
accident, fire, flood, typhoon, earth!uake, epidemic or other disaster or
calamity to prevent loss of life and property, or imminent danger to public
safety/
2. 0n cases o$ &r"ent *or/ to be per$ormed on the machinery, e!uipment,
or installation, to avoid serious loss which the employer would otherwise
suffer/
3. )n the event of abnormal press&re o$ *or/ due to special circumstances,
where the employer cannot ordinarily be e"pected to resort to other
measures/
4. 8o prevent loss or dama"e to peris#able "oods/
5. (here the nat&re o$ t#e *or/ re!uires continuous operations and the
stoppage of work may result in irreparable injury or loss to the employer/
6. Ander ot#er circ&mstances analo"o&s or similar to the foregoing as
determined by the &ecretary of Labor and 1mployment/ and
7. (hen the work is necessary to avail o$ $avorable *eat#er or
environmental conditions where performance or !uality of work is
dependent thereon.
=#en an employee vol&nteers to *or/ on #is rest day under other
circumstances, #e s#all e6press s&c# desire in *ritin", he shall
e"press such desire in writing, subject to payment of additional
compensation.
Art. 47. Com(en#at"on for re#t day3 S-nday or !o$"day &or%.
=#ere an employee is made or permitted to *or/ on #is sc#ed&led rest
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
day, #e s#all be paid an additional compensation o$ at least t#irty percent
(;0: o$ #is re"&lar *a"e. n employee shall be entitled to such additional
compensation for work performed on &unday only when it is his established rest
day.
(hen the nature of the work of the employee is such that he has no regular
workdays and no regular rest days can be scheduled, he shall be paid an
additional compensation of at least thirty percent ;0CI< of his regular wage for
work performed on &undays and holidays.
=or/ per$ormed on any special #oliday s#all be paid an additional
compensation o$ at least t#irty percent (;0: o$ t#e re"&lar *a"e o$ t#e
employee. (here such #oliday *or/ $alls on t#e employeeEs sc#ed&led rest
day, he shall be entitled to an additional compensation of at least $i$ty per cent
(50: o$ #is re"&lar *a"e.
(here the collective bargaining agreement or other applicable employment
contract stipulates the payment of a higher premium pay than that prescribed
under this rticle, the employer shall pay such higher rate.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter III
EOLIDACS3 SERBICE INCENTIBE LEABES AND
SERBICE CEARGES
Art. 4). R"+!t to !o$"day (ay.
1very worker shall be paid his regular daily wage during regular holidays, e"cept
in retail and service establishments regularly employing less than ten ;.C<
workers/

8he employer may re!uire an employee to work on any holiday but such
employee shall be paid a compensation e!uivalent to twice his regular rate/ and

s used in this rticle, HholidayH includes7 +ew JearBs *ay, ?aundy 8hursday,
'ood :riday, the ninth of pril, the first of ?ay, the twelfth of 3une, the fourth of
3uly, the thirtieth of +ovember, the twenty#fifth and thirtieth of *ecember and the
day designated by law for holding a general election.
Em($oyee# Not Co.ered by Eo$"day# Pay
.. government employees/
-. retail and service establishments regularly employing less than ten ;.C<
workers/
0. managerial employees/
,. field personnel and other employees whose time and performance is
unsupervised by the employer/ and,
=. domestic helpers, and persons in the personal service of another.
Ab#ene#
1mployee on leave of absence with pay entitled to the benefit provided
herein.
1mployee on leave of absence without pay on the day immediately
preceding a regular holiday may not be paid the re!uired holiday pay if
he has not worked on such regular holiday.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
(here the day immediately preceding the holiday is a non#working day in
the establishment or the sche,duled rest day of the employee, he shall not
be deemed to be on leave of absence on that day, in which case he shall
be entitled to the holiday pay if he worked on the day immediately
preceding the non#working day or rest day.
-emporary or Periodic (#&tdo*n and -emporary %essation o$ =or/
(0.e inventory, repair o$ e.&ipment regular holidays falling within this
period is compensable.
-emporary or Periodic (#&tdo*n and -emporary %essation o$ =or/
D&e to 5&siness 2everses regular holidays falling within this period is
not compensable.
Eo$"day Pay of Certa"n Em($oyee#
(a) Pr".ate S!oo$ Tea!er# including faculty members of college and
universities may not be paid regular holidays during semestral
vacations. Paid for the regular holidays during Christmas vacation.
(b) Em($oyee Pa"d by Re#-$t# ;Payment on Piece (ork< holiday pay shall
not be less than his average daily earnings for the last 6 actual working
days preceding the regular holiday/ Provided however, that in no case
shall the holiday pay be less than the applicable statutory minimum wage
rate.
(c) Sea#ona$ <or%er# may not be paid the re!uired holiday pay during off#
season when they are not at work.
(d) <or%er# <"t!o-t Re+-$ar <or%"n+ Day# entitled to the benefits.
Do-b$e Eo$"day an employee who is entitled to holiday pay should receive at
least -CCI of his basic wage even if he did not work on that day, provided, he
was present or on leave with pay on the preceding work day. )f he worked, he is
entitled to 0CCI of his basic wage.
S-e##".e Re+-$ar Eo$"day# where there are two ;-< successive regular
holidays, an employee may not be paid for both holidays if he absents himself
from work on the day immediately preceding the first holiday, unless he works on
the first holiday, in which case he is entitled to his holiday pay on the second
holiday.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
8o be entitled to two ;-< successive holidays, employee must7 ;.< be present on
the day immediately preceding the .
st
holiday/ or ;-< be on leave with pay.
Eo$"day#
.. +ew JearBs day # 3an. .
-. ?aundy 8hursday # ?ovable date
0. 'ood :riday # ?ovable date
,. raw ng Kagitingan # pril 4
=. Labor *ay # ?ay .
>. )ndependence *ay # 3une .-
6. +ational heroes *ay # Last &unday of ugust
5. Donifacio *ay # +ov. 0C
4. 1idul :itBr # ?ovable date
.C. Christmas *ay # *ec. -=
... 2i%al *ay # *ec. 0C
S(e"a$ Day#
.. &pecial +on#working *ays
-. &pecial Public Folidays
0. &pecial national Foliday
,. ll &aintBs *ay # +ov. .
=. Last *ay of the Jear # *ec. 0.
>. +inoy !uino *ay # ug. -.
R-$e# on Payment of Eo$"day Pay
1. Re+-$ar Eo$"day#
a. )f it is employeeBs regular work day7
Anworked7 # .CCI
(orked7
o .
st
5 hrs # -CCI
o 1"cess of 5 hrs # L0CI of hourly rate on said day
b. )f it is employeeBs rest day7
Anworked7 # .CCI
(orked7
o .
st
5 hrs # L0CI of -CCI
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
o 1"cess of 5 hrs # L0CI of hourly rate on said day
*. S(e"a$ Day#
Anworked no pay unless there is a favorable company policy,
practice or CD granting payment of wages on special days
even if unworked.
(orked
o .
st
5 hrs # L0CI of the daily rate of .CCI
o 1"cess of 5 hrs # L0CI of hourly rate on said day
:alling on employeeBs rest day and if worked
o .
st
5 hrs # L=CI of the daily rate of .CCI
o 1"cess of 5 hrs # L0CI of hourly rate on said day
3. S(e"a$ <or%"n+ Eo$"day# only basic rate
Art. 4@. R"+!t to #er."e "nent".e $ea.e.
1very employee *#o #as rendered at least one year o$ service s#all be
entitled to a yearly service incentive leave o$ $ive days *it# pay.

8his provision s#all not apply to those who are already enjoying the benefit
herein provided, t#ose en'oyin" vacation leave *it# pay o$ at least $ive days
and t#ose employed in establis#ments re"&larly employin" less t#an ten
employees or in establis#ments e6empted $rom "rantin" t#is bene$it by t#e
(ecretary o$ )abor and 1mployment after considering the viability or financial
condition of such establishment.

8he grant of benefit in e"cess of that provided herein shall not be made a subject
of arbitration or any court or administrative action.
&ervice )ncentive Leave ;&)L< is commutable to its money e!uivalent if not
used or e"hausted at the end of the year.
At least 1 year service service for not less than .- months, whether
continuous or broken reckoned from the date the employee started working.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Em($oyee# Not Co.ered by SIL
.. government employees/
-. managerial employees/
0. field personnel and other employees whose time and performance is
unsupervised by the employer/
,. domestic helpers, and persons in the personal service of another/
=. those who are already enjoying the benefit herein provided/
>. those enjoying vacation leave with pay of at least five ;=< days/
6. those employed in establishments regularly employing less than ten ;.C<
employees/ and,
5. those e"empted by the &ecretary of Labor.
Art. 41. Ser."e !ar+e#.
ll service charges collected by hotels, restaurants and similar establishments
shall be distributed at the rate of eighty#five percent ;5=I< for all covered
employees and fifteen percent ;.=I< for management. 8he share of the
employees shall be e!ually distributed among them. )n case the service charge is
abolished, the share of the covered employees shall be considered integrated in
their wages.
Ser."e C!ar+e# apply only to establishments collecting service charges such
as hotels, restaurants, lodging houses, nightclubs, cocktail lounge, massage
clinics, bars, casinos and gambling houses, and similar enterprises, including
those entities operating primarily as private subsidiaries of the 'overnment.
1mployees covered all employees of employers are covered, regardless of
their positions, designations or employment status, and irrespective of the
method by which their wages are paid e6cept to mana"erial employees.
D"#tr"b-t"on
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
5=I distributed e!ually among the covered employees.
.=I for the disposition by management to answer losses and breakages
and distribution to managerial employees at the discretion of the
management in the latter case.
*istributed and paid to the employees not less than once every - weeks
or twice a month at intervals not e"ceeding .> days.
&upervisors share in the .=I. 8he Labor Code speaks of management,$
not managerial employees.$
Baat"on Lea.e G S"% Lea.e not re!uired by law and depends on voluntary
employer policy or collective bargaining.
So$o Parent Lea.e a parental leave of not more than 6 working days every
years shall be granted to any solo parent employee who has rendered service of
at least one ;.< year.
&olo parent woman who gives birth as a result of rape or crimes against
chastity, a widow or widower, a spouse separated legally or de facto for at
least one year and so forth. 8he claimant must show that heEshe is left
alone with the responsibility of parenthood.
Lea.e =nder RA 4*1* 0Ant"9B"o$ene A+a"n#t <omen and t!e"r C!"$dren At
of *66)2 allows the victim of violence, which may be physical, se"ual, or
psychological, to apply for the issuance of a protection order. )f suchvictim is an
employee, she is entitled to a paid leave of up to .C days in addition to other paid
leaves under the Labor Code, other laws and company policies.
8he employee has to submit a certification from the Punong Darangay or
Kagawad, or prosecutor or clerk of court that an action under 2 4->- has
been filed and is pending.
Patern"ty Lea.e At of 1441 0R.A. No. >>1>52
)t grants seven days of paternity leave with full pay to married male employees in
the private and public sectors. 8he conditions for entitlement are7
;a< the claimant, married male employee is employed at the time of delivery of
his child/
;b< he is cohabiting with his wife at the time she gives birth or suffers a
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
miscarriage/
;c< he has applied for paternity leave in accordance with &ec. , of the law@s
implementing rules/
;d< his wife has given birth or suffered a miscarriage.
)n the 2evised )mplementing 2ules issued by *9L1 and the *epartment
of Fealth, abortion #as been delisted $rom t#e covera"e of paternity
leave law.
?oreover, the entitlement of leave is seven calendar days.
PRESIDENTIAL DECREE NO. >@1
Re8-"r"n+ A$$ Em($oyer# to Pay T!e"r Em($oyee# A 17t!9Mont! Pay
Re."#ed G-"de$"ne# on t!e Im($ementat"on of t!e 17
t!
Mont! (ay La&
Payment of 17t!9mont! Pay. # All employers are #ereby re.&ired to pay all
t#eir ran/-and-$ile employees a 1;
t#
-mont# pay not later t#an December 84
o$ every year.
T!"rteent!9mont! (ay shall mean one twelfth ;.E.-< of the basic salary of an
employee within a calendar year/

Em($oyer# o.ered. # 8he *ecree s#all apply to all employers
e6cept toA
(a) 8he !overnment and any o$ its political s&bdivisions, including
government#owned and controlled corporations, e"cept those corporations
operating essentially as private subsidiaries of the 'overnment/
(b) 1mployers already payin" t#eir employees 1;-mont# pay or more in a
calendar year or its e.&ivalent at the time of this issuance/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
(c) 1mployers o$ #o&se#old #elpers and persons in t#e personal service
of another in relation to such workers/ and
(d) 1mployers o$ t#ose *#o are paid on p&rely commission, boundary, or
task basis, and those who are paid a fi"ed amount for performing a
specific work, irrespective of the time consumed in the performance
thereof, e"cept where the workers are paid on piece#rate basis in which
case the employer shall be covered by this issuance insofar as such
workers are concerned.
s used herein, *or/ers paid on piece-rate basis s#all re$er to t#ose *#o
are paid a standard amo&nt $or every piece or &nit o$ *or/ prod&ced t#at is
more or less re"&larly replicated, without regard to the time spent in producing
the same.

8he term Dits e.&ivalentD as used in paragraph c< hereof s#all incl&de
%#ristmas bon&s, mid-year bon&s nd ot#er cas# bon&ses amo&ntin" to not
less t#an 1918t# o$ t#e basic salary but shall not incl&de cas# and stoc/
dividends, cost o$ livin" allo*ances and all ot#er allo*ances re"&larly
en'oyed by t#e employee, as *ell as non-monetary bene$its.
>inim&m amo&nt # the minimum .0
th
month pay re!uired by law shall not be
less than .E.- of the total basic salary earned by an employee within a calendar
year.
Ba#" Sa$ary # for the purpose of computing the .0
th
month pay shall include all
remuneration or earning paid by his employer for services rendered but does not
include allowances and monetary benefits which are considered or integrated as
part of the regular or basic salary, such as the cash e!uivalent of unused
vacation and sick leave credits, overtime premium, night differential and holiday
pay, and cost of living allowances.
17
t!
9mont! Pay for Certa"n Ty(e# of Em($oyee#
a. 1mployees paid by res&lts entitled to the mandated .0
th
#month pay
based on their total earnings during the calendar year.
b. -#ose *it# m&ltiple employer entitled to the re!uired .0
th
month pay
from all their private employers regardless of their total earnings from each
or all of their employers.
c. Private sc#ool teac#ers entitled to the re!uired .0
th
month pay if they
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
have rendered service for at least one ;.< month within a year.
17
t!
9mont! Pay of re#"+ned or Se(arated Em($oyee
&uch resigned or separated employee is entitled of the amount e!uivalent to .E.-
of his total basic salary earned during such year when he was still working with
his employer.
Consistent with the principle of e!uity, the employer can also re!uire the
employee to demand the employee to clear himself of all the liabilities and
accountabilities upon the termination of the relationship.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
T"t$e II
<AGES
C!a(ter I
PRELIMINARC MATTERS
Art. 45. Def"n"t"on#.
s used in this 8itle7
Per#on means an individual, partnership, association, corporation, business
trust, legal representatives, or any organi%ed group of persons.
Em($oyer includes any person acting directly or indirectly in the interest of an
employer in relation to an employee and shall include the government and all its
branches, subdivisions and instrumentalities, all government#owned or controlled
corporations and institutions, as well as non#profit private institutions, or
organi%ations.
Em($oyee includes any individual employed by an employer.
Em($oy includes to suffer or permit to work.
<a+e paid to any employee shall mean the rem&neration or earnin"s,
however designated, capable of being e6pressed in terms o$ money, *#et#er
$i6ed or ascertained on a time, task, piece, or commission basis, or other
method of calculating the same, which is payable by an employer to an
employee &nder a *ritten or &n*ritten contract of employment for work done
or to be done, or for services rendered or to be rendered and incl&des t#e $air
and reasonable val&e, as determined by the &ecretary of Labor and
1mployment, o$ board, lodging, or other $acilities c&stomarily $&rnis#ed by
t#e employer to t#e employee.
<a+e In$-de# Fa"$"t"e# or Commod"t"e# 0Art. 45 0f2
Fa"$"t"e# include articles or services ;such as board and lodging< for the
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
benefit of the employee or his family ;)22 of the Labor Code<.
Fa"$"t"e# a# D"#t"n+-"#!ed from S-(($ement#
S-(($ement when the benefit or privilege given to the employee constitute an
e"tra remuneration over and above his basic or ordinary earning or wage. )t is
not wage deductible.
Re8-"rement# for fa"$"t"e# to be &a+e9ded-t"b$e
;a< Proof must be shown that such facilities are customarily furnished by the
trade/
;b< Provision of deductible facilities must be voluntarily accepted in writing by
the employee/ and,
;c< facilities must be charged at fair and reasonable value as determined by
the &ecretary of Labor and 1mployment.
Art. 4>. A(($"at"on of T"t$e.
8his 8itle shall not apply to $arm tenancy or leasehold, domestic service and
persons working in their respective #omes in needle *or/ or in any cotta"e
ind&stry duly registered in accordance with law.
8he intention of this article is to e"clude small businesses that probably
cannot afford to pay the wage rates set by law.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter II
MINIM=M <AGE RATES
Art. 44. Re+"ona$ m"n"m-m &a+e#.
8he minim&m *a"e rates $or a"ric&lt&ral and non-a"ric&lt&ral employees
and workers in each and every region of the country s#all be t#ose prescribed
by t#e 2e"ional -ripartite =a"es and Prod&ctivity 5oards. ;s amended by
&ection 0, 2epublic ct +o. >6-6, 3une 4, .454<.
<!o #et# m"n"m-m &a+eI
o 2egional 8ripartite (ages and Productivity Doard
o Congress
M"n"m-m &a+e the lowest wage rate fi"ed by law that an employer can pay
his employees.
Complaint may be brought before the *9L1 regional office ;rt. .-4< or Labor
rbiter ;rt. -.6<.
worker is daily-paid if he gets paid only for days he actually worked.
worker is mont#ly-paid if his monthly rate covers all the days of the month.
gricultural wage rates are generally lower than the industrial. A"ric&lt&ral rate
applies to farm work from land preparation to harvesting/ ind&strial rate applies
to manufacturing or processing of farm products.
Art. 166. Pro!"b"t"on a+a"n#t e$"m"nat"on or d"m"n-t"on of
benef"t#.
+othing in this Dook shall be construed to eliminate or in any way diminish
supplements, or other employee benefits being enjoyed at the time of
promulgation of this Code.
Non9d"m"n-t"on r-$e it essentially means that benefits being given to
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
employees cannot be taken back or reduced unilaterally by the employer
because the benefit has become part of the employment contract, written or
unwritten.
E/e(t"on#A
;a< if the practice is due to error ;but it must be done soon after the discovery
of the error</
;b< the benefit being claimed is a contingent or conditional benefit
Art. 161. Payment by re#-$t#.
8he &ecretary of Labor and 1mployment shall regulate the payment of wages by
results, including pakyao, piecework, and other non#time work, in order to ensure
the payment of fair and reasonable wage rates, preferably through time and
motion studies or in consultation with representatives of workersB and employersB
organi%ations.
P"ee9rate &or%er# may be #-bd"."ded "nto t&o ate+or"e#
;a< those who are paid piece rates which are prescribed in Piece 2ate 9rders
issued by *9L1/
;b< those who are paid output rates which are prescribed by the employer and
are not yet approved by the *9L1.
Ander the first category, wages or earnings are determined by simply multiplying
the number of pieces produced by the pay rate per piece.
Ander the second category, the number of pieces produced is multiplied by the
rate per piece as determined by the employer.
Dut if the amount is lower than the legal daily rate, the employer must make up
the difference.
P"ee9rate Em($oyee# are Ent"t$ed to t!e Fo$$o&"n+ M"n"m-m <a+e and
Benef"t#
;a< the applicable statutory minimum daily rate
;b< yearly service incentive leave of five ;=< days with pay
;c< night shift differential pay
;d< holiday pay
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;e< meal and rest periods
;f< overtime pay ;conditional<
;g< premium pay
(h) .0
th
month pay
;i< other benefits granted by law, individual or collective agreement or
company policy or practice
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter III
PACMENT OF <AGES
Art. 16*. Form# of (ayment.
No employer s#all pay t#e *a"es of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits, or any ob'ect ot#er t#an le"al
tender, even *#en e6pressly re.&ested by t#e employee.
Payment o$ *a"es by c#ec/ or money order s#all be allo*ed *#en such
manner of payment is c&stomary on the date of effectivity of this Code, or is
necessary because of special circumstances as specified in appropriate
regulations to be issued by the &ecretary of Labor and 1mployment or as
stipulated in a collective bargaining agreement.
Art. 167. T"me of (ayment.
Genera$ R-$eA =a"es s#all be paid at least once every t*o (8 *ee/s or
t*ice a mont# at intervals not e6ceedin" si6teen (17 days.
E/e(t"onA 0$ on acco&nt o$ $orce ma'e&re or circ&mstances beyond t#e
employerEs control payment of wages on or within the time herein provided
cannot be made
8he employer shall pay t#e *a"es immediately a$ter s&c# $orce
ma'e&re or circ&mstances #ave ceased. +o employer shall make
payment with less fre!uency than once a month.
8he (ayment of &a+e# of employees engaged to (erform a ta#% &!"!
annot be om($eted "n t&o 0*2 &ee%# #!a$$ be #-b;et to t!e fo$$o&"n+
ond"t"on#, in the absence of a collective bargaining agreement or arbitration
award7
;a< 8hat payments are made at intervals not e"ceeding si"teen ;.>< days, in
proportion to the amount of work completed/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;b< 8hat final settlement is made upon completion of the work.
8he )22 of the Code re!uires every employer to pay his employees through
payroll. 8hey payroll should clearly, among other data, the employee@s pay rate,
the deductions made, and the amount actually paid.
lso re!uired are employees@ individual time records.
Art. 16). P$ae of (ayment.
Genera$ R-$eA Payment o$ *a"es s#all be made at or near t#e place o$
&nderta/in"
E/e(t"onA As ot#er*ise provided by s&c# re"&lations as t#e (ecretary o$
)abor and 1mployment may prescribe under conditions to ensure greater
protection of wages.
Art. 16@. D"ret (ayment of &a+e#.
Genera$ R-$eA =a"es s#all be paid directly to t#e *or/ers to *#om t#ey
are d&e.
E/e(t"on#A
0n cases o$ $orce ma'e&re rendering such payment impossible or
&nder ot#er special circ&mstances to be determined by t#e
(ecretary o$ )abor and 1mployment in appropriate re"&lations, in
which case, the worker may be paid through another person under written
authority given by the worker for the purpose/ or
=#ere t#e *or/er #as died, in which case, t#e employer may pay t#e
*a"es o$ t#e deceased *or/er to t#e #eirs o$ t#e latter without the
necessity of intestate proceedings. 8he claimants, if they are all of age,
shall e"ecute an affidavit attesting to their relationship to the deceased
and the fact that they are his heirs, to the e"clusion of all other persons. )f
any of the heirs is a minor, the affidavit shall be e"ecuted on his behalf by
his natural guardian or ne"t#of#kin. 8he affidavit shall be presented to the
employer who shall make payment through the &ecretary of Labor and
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
1mployment or his representative. 8he representative of the &ecretary of
Labor and 1mployment shall act as referee in dividing the amount paid
among the heirs. 8he payment of wages under this rticle shall absolve
the employer of any further liability with respect to the amount paid.
Art. 161. Contrator or #-bontrator.
(henever an employer enters into a contract with another person for the
performance of the formerBs work, the employees of the contractor and of the
latterBs subcontractor, if any, shall be paid in accordance with the provisions of
this Code.
In t!e e.ent t!at t!e ontrator or #-bontrator fa"$# to (ay t!e &a+e# of
!"# em($oyee# "n aordane &"t! t!"# CodeA
t!e em($oyer #!a$$ be ;o"nt$y and #e.era$$y $"ab$e &"t! !"# ontrator
or #-bontrator to #-! em($oyee#999
to t#e e6tent o$ t!e &or% (erformed -nder t!e ontrat, in the
same manner and e6tent t!at !e "# $"ab$e to em($oyee# d"ret$y
em($oyed by !"m.
T!e Seretary of Labor and Em($oyment may, by appropriate regulations,
restrict or pro#ibit t#e contractin"-o&t o$ labor to protect t#e ri"#ts o$
*or/ers established under this Code. )n so prohibiting or restricting, he may
ma/e appropriate distinctions bet*een 0a2 $abor9on$y ontrat"n+ and 0b2
;ob ontrat"n+ as well as differentiations within t#ese types o$ contractin"
and determine who among the parties involved shall be considered the employer
for purposes of this Code, to prevent any violation or circumvention of any
provision of this Code.
Ty(e# of Contrat"n+9o-t of Labor
;a< Labor#only contracting ; which is prohibited under *9 +o. .5#C-<
;b< 3ob Contracting ;which is permissible under *9. +o. .5#C-<
Labor9on$y ontrat"n+ where the person supplying workers to an employer7
(a) does not have substantial capital or investment in the form of tools,
e!uipment, machineries, work premises, among others, and
;b< the workers recruited and placed by such person are performing activities
which are directly related to the principal business of such employer.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
0n s&c# cases, t#e person or intermediary shall be considered
merely as an a"ent o$ t#e employer who shall be responsible to
the workers in the same manner and e"tent as if the latter were
directly employed by him.
;c< the contractor does not e"ercise the right to control the performance of the
work of the contractual employee ;as provided in *9 +o. .5#C-<.
Job Contrator , someone who7
;a< carries on an independent business and undertakes the contracted work
on his own manner and method, free from the control and direction of his
employer or principal in all the matters connected with the performance of
the work, e"cept as to the results thereof/ and
(b) has substantial capital or investment in the form of tools, e!uipment,
machineries, work premises, and other materials necessary to conduct the
business.
Court decisions have been using J;ob ontratorK and J"nde(endent
ontratorK interchangeably.
-o contract o&t is a proprietary ri"#t o$ employer to e6ercise an in#erent
mana"ement prero"ative, unless such employer is acting in a malicious or
arbitrary manner.
8he employer has the right to +promote e$$iciency and attain economy, and to
determine whether services +s#o&ld be per$ormed by its personnel or
contracted to o&tside a"encies., @nless it is proved that management acted
in a malicio&s or arbitrary manner, the Court will not interfere with the
e"ercise of judgment by an employer.$
Contrat"n+ , an arrangement whereby a principal agrees to put out or farm out
with a contractor or subcontractor the performance or completion of a specific
job, work or service within a definite or predetermined period regardless of
whether such job, work or service is to be performed or completed within or
outside the premises of the principal.
More Contrat"n+ Pro!"b"t"on# =nder Set"on 1 of D.O. No. 1>96*
;a< contracting out that results in termination of regular employees and
reduction of work hours or reduction or splitting of the bargaining unit
;such contracting out is prohibited only if it is not done in good faith and
not justified by e"igencies of the business</
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;b< re!uiring the contractor@s employee to perform, aside from his assigned
functions, the functions of regular employees/
;c< re!uiring the contractor@s employee to sign a waiver of labor standards, or
a !uitclaim freeing the principal or contractor from liability for future claims/
;d< make the contractor@s employee sign a contract fi"ing the period of
employment to a term shorter than the term of the contract between the
principal and the contractor unless the latter contract is divisible into
phases for which substantially different skills are re!uired and this ;fact< is
made known to the employee at the time of the engagement.
ll in all, the additional prohibitions refer to schemes which7 ;a< skirt around the
workers@ rights to security of tenure and to self#organi%e, or which ;b< take
advantage of the economic hardship of the contractual employees.
-#ey are circ&mventive and e6ploitative sc#emes.
Art. 165. Ind"ret em($oyer.
8he provisions of the immediately preceding article shall likewise apply to any
person, partners#ip, association or corporation *#ic#, not bein" an
employer, contracts *it# an independent contractor $or t#e per$ormance o$
any *or/, tas/, 'ob or pro'ect.
Art. 16>. Po#t"n+ of bond.
An employer or indirect employer may re.&ire t#e contractor or
s&bcontractor to $&rnis# a bond e.&al to t#e cost o$ labor &nder contract,
on condition that the bond will answer for the wages due the employees should
the contractor or subcontractor, as the case may be, fail to pay the same.
Art. 164. So$"dary $"ab"$"ty.
8he provisions of e"isting laws to the contrary notwithstanding, every employer
or indirect employer s#all be #eld responsible *it# #is contractor or
s&bcontractor $or any violation o$ any provision o$ t#is %ode. :or purposes
of determining the e"tent of their civil liability under this Chapter, they shall be
considered as direct employers.
)f the liability is in the nature of penalty, such as backwages and separation pay
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
because of a wrongful dismissal, the liability should be solely that of the
contractor if there is no proof that the principal conspired with the contractor in
committing the wrongful dismissal of the contractor@s worker.
Art. 116. <or%er (referene "n a#e of ban%r-(ty.
0n t#e event o$ ban/r&ptcy or li.&idation o$ an employerEs b&siness, #is
*or/ers s#all en'oy $irst pre$erence as re"ards t#eir *a"es and ot#er
monetary claims, any provisions of law to the contrary notwithstanding. &uch
unpaid wages and monetary claims shall be paid in $&ll be$ore claims o$ t#e
"overnment and ot#er creditors may be paid. ;s amended by &ection .,
2epublic ct +o. >6.=, ?arch -., .454<
L"8-"dat"on , is what happens when a corporation terminates its corporate
e"istence7 it settles and closes its affairs by disposing of its assets and paying off
its debts, including claims of its employees.
Art. 111. AttorneyL# fee#.
0n cases o$ &nla*$&l *it##oldin" o$ *a"es, t#e c&lpable party may be
assessed attorneyEs $ees e.&ivalent to ten (erent o$ t#e amo&nt o$ *a"es
recovered.
)t shall be &nla*$&l for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of wages, attorneyEs $ees *#ic#
e6ceed ten percent o$ t#e amo&nt o$ *a"es recovered.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter IB
PROEIBITIONS REGARDING <AGES
Art. 11*. Non9"nterferene "n d"#(o#a$ of &a+e#.
No employer s#all limit or ot#er*ise inter$ere *it# t#e $reedom o$ any
employee to dispose o$ #is *a"es. Fe shall not in any manner force, compel,
or oblige his employees to purchase merchandise, commodities or other property
from any other person, or otherwise make use of any store or services of such
employer or any other person.
Art. 117. <a+e ded-t"on.
Genera$ R-$eA No employer, in his own behalf or in behalf of any person, s#all
ma/e any ded&ction $rom t#e *a"es o$ #is employees.
E/e(t"on#A
(a) )n cases *#ere t#e *or/er is ins&red *it# #is consent by the employer,
and t#e ded&ction is to recompense t#e employer $or t#e amo&nt
paid by #im as premium on the insurance/
(b) 4or &nion d&es, in cases where the right of the worker or his union to
check#off has been recogni%ed by the employer or authori%ed in writing by
the individual worker concerned/ and
(c) )n cases *#ere t#e employer is a&t#ori3ed by la* or re"&lations
issued by the &ecretary of Labor and 1mployment.
Add"t"ona$ to t!e A-t!or":ed Ded-t"on#
;a< )n cases where the employee is indebted to the employer, where such
indebtedness has become due and demandable/
;b< )n court awards, wages may be subject of e"ecution or attachment, but
only for debts incurred for food, shelter, clothing, and medical attendance/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;c< (ithholding ta"/
;d< &alary deductions of a member of a legally established cooperative/
;e< *eductions for payment to third persons, upon written authori%ation of the
employee/
;f< Anion dues/
;g< gency fee/
;h< *eductions for value of meal and other facilities/
;i< *eductions for loss or damage/
;j< &&&, ?edicare, Pag)D)' premiums.
Ander the circumstance of employee@s payment obligation to a third person, the
employer may agree to make deduction but is not obliged to do so. Fe must not
receive any pecuniary benefit, directly or indirectly, from the transaction.
Art. 11). De(o#"t# for $o## or dama+e.
Genera$ R-$eA +o employer shall re!uire his worker to make deposits from
which deductions shall be made for the reimbursement of loss of or damage to
tools, materials, or e!uipment supplied by the employer.
E/e(t"on#A =#en t#e employer is en"a"ed in such trades, occupations or
b&siness *#ere t#e practice o$ ma/in" ded&ctions or re.&irin" deposits is
a reco"ni3ed one, or is necessary or desirable as determined by t#e
(ecretary o$ )abor and 1mployment in appropriate r&les and re"&lations.
Art. 11@. L"m"tat"on#.
No ded&ction $rom t#e deposits o$ an employee $or t#e act&al amo&nt o$
t#e loss or dama"e s#all be made &nless t#e employee #as been #eard
t#ereon, and #is responsibility #as been clearly s#o*n.
Fo-r Cond"t"on# to Met Before Payment# for Lo#t or Dama+ed E8-"(ment
May Be Ded-ted
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;a< the employee is shown to be responsible for the loss or damage/
;b< the employee is given ample opportunity to show cause why deduction
should not be made/
;c< the amount of the deduction is fair and reasonable and shall not e"ceed
the actual loss or damage/ and,
;d< the deduction from the employee@s wage does not e"ceed -CI of the
employee@s wages in a week.
Art. 111. <"t!!o$d"n+ of &a+e# and %"%ba%# (ro!"b"ted.
0t s#all be &nla*$&l $or any person, directly or indirectly, to *it##old any
amo&nt $rom t#e *a"es o$ a *or/er or induce him to give up any part of his
wages by force, stealth, intimidation, threat or by any other means whatsoever
*it#o&t t#e *or/erEs consent.
8he earned wages must be paid on time and in full. 8he employer cannot refuse
to pay the wages because the employee has not yet submitted a re!uired report
or has violated certain company policy. 8he inefficiency or violation can be
acted upon in some way but not by withholding the wages.
Art. 115. Ded-t"on to en#-re em($oyment.
0t s#all be &nla*$&l to ma/e any ded&ction $rom t#e *a"es o$ any employee
$or t#e bene$it o$ t#e employer or #is representative or intermediary as
consideration o$ a promise o$ employment or retention in employment.
Art. 11>. Reta$"atory mea#-re#.
)t shall be &nla*$&l for an employer7
to re$&se to pay or
red&ce t#e *a"es and bene$its,
disc#ar"e or in any manner discriminate a"ainst any employee *#o
#as $iled any complaint or instit&ted any proceedin" under this 8itle
or has testi$ied or is abo&t to testi$y in s&c# proceedin"s.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. 114. Fa$#e re(ort"n+.
0t s#all be &nla*$&l $or any person to ma/e any statement, report, or record
$iled or /ept p&rs&ant to t#e provisions o$ t#is %ode /no*in" s&c#
statement, report or record to be $alse in any material respect.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter B
<AGE ST=DIES3 <AGE AGREEMENTS AND
<AGE DETERMINATION
Art. 1*6. Creat"on of Nat"ona$ <a+e# and Prod-t"."ty
Comm"##"on.
8here is hereby created a National =a"es and Prod&ctivity %ommission,
hereinafter referred to as the Commission, which shall be attac#ed to t#e
Department o$ )abor and 1mployment (D<)1 for policy and program
coordination. ;s amended by 2epublic ct +o. >6-6, 3une 4, .454<.
Art. 1*1. Po&er# and f-nt"on# of t!e Comm"##"on.
8he Commission shall have the following powers and functions7
(a) 8o act as the national cons&ltative and advisory body to t#e President
of the Philippines and Congress on matters relating to wages, incomes
and productivity/
(b) 8o $orm&late policies and "&idelines on wages, incomes and
productivity improvement at the enterprise, industry and national levels/

(c) 8o prescribe r&les and "&idelines for the determination of appropriate
minimum wage and productivity measures at the regional, provincial, or
industry levels/
(d) 8o revie* re"ional *a"e levels set by the 2egional 8ripartite (ages and
Productivity Doards to determine if these are in accordance with
prescribed guidelines and national development plans/
(e) 8o &nderta/e st&dies, researc#es and s&rveys necessary for the
attainment of its functions and objectives, and to collect and compile data
and periodically disseminate information on wages and productivity and
other related information, including, but not limited to, employment, cost#
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
of#living, labor costs, investments and returns/
(f) 8o revie* plans and pro"rams o$ t#e 2e"ional -ripartite =a"es and
Prod&ctivity 5oards to determine whether these are consistent with
national development plans/
(g) 8o e6ercise tec#nical and administrative s&pervision over t#e
2e"ional -ripartite =a"es and Prod&ctivity 5oards/
(h) 8o call, from time to time, a national tripartite con$erence of
representatives of government, workers and employers for the
consideration of measures to promote wage rationali%ation and
productivity/ and
(i) 8o e6ercise s&c# po*ers and $&nctions as may be necessary to
implement this ct.
T!e Comm"##"on #!a$$ be om(o#ed of
;a< the &ecretary of Labor and 1mployment as e"#officio chairman,
;b< the *irector#'eneral of the +ational 1conomic and *evelopment uthority
;+1*< as e"#officio vice#chairman,
;c< and two ;-< members each from workersB and employersB sectors who
shall be appointed by the President of the Philippines upon
recommendation of the &ecretary of Labor and 1mployment to be made
on the basis of the list of nominees submitted by the workersB and
employersB sectors, respectively, and who shall serve for a term of five ;=<
years. 8he 1"ecutive *irector of the Commission shall also be a member
of the Commission.
8he Commission shall be assisted by a &ecretariat to be headed by an 1"ecutive
*irector and two ;-< *eputy *irectors, who shall be appointed by the President of
the Philippines, upon the recommendation of the &ecretary of Labor and
1mployment.
8he 1"ecutive *irector shall have the same rank, salary, benefits and other
emoluments as that of a *epartment ssistant &ecretary, while the *eputy
*irectors shall have the same rank, salary, benefits and other emoluments as
that of a Dureau *irector. 8he members of the Commission representing labor
and management shall have the same rank, emoluments, allowances and other
benefits as those prescribed by law for labor and management representatives in
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
the 1mployeesB Compensation Commission. ;s amended by 2epublic ct +o.
>6-6, 3une 4, .454<
Art. 1**. Creat"on of Re+"ona$ Tr"(art"te <a+e# and Prod-t"."ty
Board#.
8here is #ereby created 2e"ional -ripartite =a"es and Prod&ctivity 5oards,
#ereina$ter re$erred to as 2e"ional 5oards, in all re"ions, including
autonomous regions as may be established by law. 8he Commission shall
determine the officesEhead!uarters of the respective 2egional Doards.
Po&er# and f-nt"on# of t!e Re+"ona$ Board# "n t!e"r re#(et".e terr"tor"a$
;-r"#d"t"on#
(a) 8o develop plans, pro"rams and pro'ects relative to wages, incomes
and productivity improvement for their respective regions/
(b) 8o determine and $i6 minim&m *a"e rates applicable in their regions,
provinces or industries therein and to issue the corresponding wage
orders, subject to guidelines issued by the Commission/
(c) 8o &nderta/e st&dies, researc#es, and s&rveys necessary for the
attainment of their functions, objectives and programs, and to collect and
compile data on wages, incomes, productivity and other related
information and periodically disseminate the same/

(d) 8o coordinate *it# t#e ot#er 2e"ional 5oards as may be necessary to
attain the policy and intention of this Code/
(e) 8o receive, process and act on applications for e"emption from
prescribed wage rates as may be provided by law or any (age 9rder/ and
(f) 8o e6ercise s&c# ot#er po*ers and $&nctions as may be necessary to
carry out their mandate under this Code.
0mplementation o$ t#e plans, pro"rams, and pro'ects o$ t#e 2e"ional
5oards referred to in the second paragraph, letter ;a< of this rticle, s#all be
t#ro&"# t#e respective re"ional o$$ices o$ t#e Department o$ )abor and
1mployment *it#in t#eir territorial '&risdiction/ Provided, however, 8hat the
2egional Doards shall have technical supervision over the regional office of the
*epartment of Labor and 1mployment with respect to the implementation of said
plans, programs and projects.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Ea! Re+"ona$ Board #!a$$ be om(o#ed of
;a< the 2egional *irector of the *epartment of Labor and 1mployment as
chairman,
;b< the 2egional *irectors of the +ational 1conomic and *evelopment
uthority and the *epartment of 8rade and )ndustry as vice#chairmen and

;c< two ;-< members each from workersB and employersB sectors who shall be
appointed by the President of the Philippines, upon the recommendation
of the &ecretary of Labor and 1mployment, to be made on the basis of the
list of nominees submitted by the workersB and employersB sectors,
respectively, and who shall serve for a term of five ;=< years.
1ach 2egional Doard to be headed by its chairman shall be assisted by a
&ecretariat. ;s amended by 2epublic ct +o. >6-6, 3une 4, .454<
Art. 1*7. <a+e Order.
(henever conditions in the region so warrant, t#e 2e"ional 5oard s#all
investigate and study all pertinent facts/ and based on the standards and criteria
herein prescribed, shall proceed to determine *#et#er a =a"e <rder s#o&ld
be iss&ed.
ny such =a"e <rder s#all ta/e e$$ect a$ter $i$teen (15 days $rom its
complete p&blication in at least one (1 ne*spaper o$ "eneral circ&lation in
t#e re"ion.
0n t#e per$ormance o$ its *a"e-determinin" $&nctions, t#e 2e"ional 5oard
s#all cond&ct p&blic #earin"s9cons&ltations, giving notices to employeesB and
employersB groups, provincial, city and municipal officials and other interested
parties.
Any party a""rieved by t#e =a"e <rder issued by the 2egional Doard may
appeal s&c# order to t#e %ommission *it#in ten (10 calendar days $rom
t#e p&blication of such order.
)t shall be mandatory for the %ommission to decide s&c# appeal *it#in si6ty
(70 calendar days $rom t#e $ilin" t#ereo$.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
-#e $ilin" o$ t#e appeal does not stay t#e order &nless t#e person
appealin" such order shall file with the Commission, an &nderta/in" *it# a
s&rety or s&reties satis$actory to t#e %ommission for the payment to the
employees affected by the order of the corresponding increase, in the event such
order is affirmed. ;s amended by 2epublic ct +o. >6-6, 3une 4, .454<
'uidelines issued by the 2egional 8ripartite (ages and Productivity Doards
;28(PD< without the approval of or, worse, contrary to those promulgated by
the +ational (ages and Productivity Commission ;+(PC<, are ineffectual, void
and cannot be the source of rights and privileges.
wage order issued without the re!uired public consultation and newspaper
publication is null and void.
Ref-#a$ or Fa"$-re to Com($y &"t! a <a+e Order 0RA >1>>2
2efusal or failure to comply with a wage order is punishable
with fine ranging from P-=,CCC to P.,CCC.CC or
imprisonment from two to four years or
both fine and imprisonment/
8he employer shall further be ordered to pay an amount double the unpaid
benefits owing to the employee.
Em($oyee# Not Co.ered by <a+e Order
a. Fousehold or domestic helpers, and workers in the personal service of
another/
b. (orkers and employees in retailEservice establishments regularly
employing not more than .C workers/ and,
c. (orkers and employees in new business enterprises outside the +C and
e"port processing %obnes for a period of not more than two or three years.
Art. 1*). Standard#GCr"ter"a for m"n"m-m &a+e f"/"n+.
8he regional minimum wages to be established by the 2egional Doard shall be
as nearly ade!uate as is economically feasible to maintain the minimum
standards of living necessary for the health, efficiency and general well#being of
the employees within the framework of the national economic and social
development program. )n the determination of such regional minimum wages,
t!e Re+"ona$ Board #!a$$3 amon+ ot!er re$e.ant fator#3 on#"der t!e
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
fo$$o&"n+A
;a< 8he demand for living wages/
;b< (age adjustment vis#M#vis the consumer price inde"/
;c< 8he cost of living and changes or increases therein/
;d< 8he needs of workers and their families/
;e< 8he need to induce industries to invest in the countryside/
;f< )mprovements in standards of living/
;g< 8he prevailing wage levels/
;h< :air return of the capital invested and capacity to pay of employers/
;i< 1ffects on employment generation and family income/ and
;j< 8he e!uitable distribution of income and wealth along the imperatives of
economic and social development.
8he wages prescribed in accordance with the provisions of this 8itle shall be the
standard prevailing minimum wages in every region. -#ese *a"es s#all
incl&de *a"es varyin" *it# ind&stries, provinces or localities i$ in t#e
'&d"ment o$ t#e 2e"ional 5oard, conditions ma/e s&c# local di$$erentiation
proper and necessary to e$$ect&ate t#e p&rpose o$ t#is -itle.
Any person, company, corporation, partners#ip or any ot#er entity
en"a"ed in b&siness s#all $ile and re"ister ann&ally *it# t#e appropriate
2e"ional 5oard, %ommission and t#e National (tatistics <$$ice, an itemi3ed
listin" o$ t#eir labor component, specifying the names of their workers and
employees below the managerial level, including learners, apprentices and
disabledEhandicapped workers who were hired under the terms prescribed in the
employment contracts, and t#eir correspondin" salaries and *a"es.
<!ere t!e a(($"at"on of any (re#r"bed &a+e "nrea#e by ."rt-e of a $a& or
&a+e order "##-ed by any Re+"ona$ Board re#-$t# "n d"#tort"on# of t!e &a+e
#tr-t-re &"t!"n an e#tab$"#!mentA
-#e employer and t#e &nion s#all ne"otiate to correct t#e
distortions.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Any disp&te arisin" $rom *a"e distortions s#all be resolved t#ro&"#
t#e "rievance proced&re under their collective bargaining agreement
and, if it remains unresolved, t#ro&"# vol&ntary arbitration. Anless
otherwise agreed by the parties in writing, s&c# disp&te s#all be
decided by t#e vol&ntary arbitrators *it#in ten (10 calendar days
$rom t#e time said disp&te *as re$erred to vol&ntary arbitration.
In a#e# &!ere t!ere are no o$$et".e a+reement# or reo+n":ed $abor
-n"on#A
T!e em($oyer# and &or%er# #!a$$ endea.or to orret #-!
d"#tort"on#.
Any disp&te arisin" t#ere$rom s#all be settled t#ro&"# t#e National
%onciliation and >ediation 5oard and,
if it remains unresolved after ten ;.C< calendar days of conciliation, s#all
be re$erred to t#e appropriate branc# o$ t#e National )abor 2elations
%ommission (N)2%. )t shall be mandatory for the +L2C to conduct
continuous hearings and decide the dispute *it#in t*enty (80 calendar
days from the time said dispute is submitted for compulsory arbitration.
-#e pendency o$ a disp&te arisin" $rom a *a"e distortion s#all not in any
*ay delay t#e applicability o$ any increase in prescribed *a"e rates
pursuant to the provisions of law or wage order.
<a+e d"#tort"on means a situation where an increase in prescribed wage
rates results in the elimination or severe contraction of intentional !uantitative
differences in wage or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions embodied in such wage
structure based on skills, length of service, or other logical bases of
differentiation.
All *or/ers paid by res&lt, including those who are paid on piecework, takay,
pakyaw or task basis, s#all receive not less t#an t#e prescribed *a"e rates
per ei"#t (? #o&rs o$ *or/ a day, or a proportion t#ereo$ $or *or/in" less
t#an ei"#t (? #o&rs.
All reco"ni3ed learners#ip and apprentices#ip a"reements s#all be
considered a&tomatically modi$ied inso$ar as t#eir *a"e cla&ses are
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
concerned to reflect the prescribed wage rates. ;s amended by 2epublic ct
+o. >6-6, 3une 4, .454<
<a+e d"#tort"on simply means that if the pay advantage of a position over
another is removed or significantly reduced by a pay adjustment re!uired by a
wage order, such pay advantage should somehow be restored.
Job $e.e$# are determined by using such grading factors as skills re!uirement,
degrees of responsibility, knowledge re!uired, working conditions, or some
similar factors.
8he job grades aim to appro"imate the relative importance of jobs and to pay
them accordingly7 the higher the job level, the higher the pay grade.
)f the duly established pay level differentations in the company are obliterated or
severely contracted, such that the previous pay gaps are gone or almost gone,
then there is salary distortion.
ny issue involving wage distortion is not a valid ground for a strike or lockout.
Pay disparity of same comparable jobs in different regions cannot be considered
a wage distortion.
(age distortion involves comparison of job located in the same region.
1"amination of alleged salary distortion is limited to jobs or position in the same
employer in the same region.
Art. 1*@. Freedom to bar+a"n.
No *a"e order s#all be constr&ed to prevent *or/ers in partic&lar $irms or
enterprises or ind&stries $rom bar"ainin" $or #i"#er *a"es *it# t#eir
respective employers. ;s amended by 2epublic ct +o. >6-6, 3une 4, .454<
Art. 1*1. Pro!"b"t"on a+a"n#t "n;-nt"on.
No preliminary or permanent in'&nction or temporary restrainin" order may
be iss&ed by any co&rt, trib&nal or ot#er entity a"ainst any proceedin"s
be$ore t#e %ommission or t#e 2e"ional 5oards. ;s amended by 2epublic
ct +o. >6-6, 3une 4, .454<
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. 1*5. Non9d"m"n-t"on of benef"t#.
No *a"e order iss&ed by any re"ional board s#all provide $or *a"e rates
lo*er t#an t#e stat&tory minim&m *a"e rates prescribed by %on"ress. ;s
amended by 2epublic ct +o. >6-6, 3une 4, .454<
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
T"t$e III
<ORDING CONDITIONS FOR
SPECIAL GRO=PS OF EMPLOCEES
C!a(ter I
EMPLOCMENT OF <OMEN
Art. 176. N"+!t&or% (ro!"b"t"on.
No *oman, regardless of age, s#all be employed or permitted or suffered to
work, with or without compensation7
(a) )n any ind&strial &nderta/in" or branch thereof bet*een ten oEcloc/ at
ni"#t and si6 oEcloc/ in the morning of the following day/ or
(b) )n any commercial or non-ind&strial &nderta/in" or branch thereof,
ot#er t#an a"ric&lt&ral, bet*een midni"#t and si6 oEcloc/ in the
morning of the following day/ or
(c) )n any a"ric&lt&ral undertaking at nighttime &nless she is "iven a period
o$ rest o$ not less t#an nine (9 consec&tive #o&rs.
Art. 171. E/e(t"on#.
8he prohibitions prescribed by the preceding rticle shall not apply in any of the
following cases7
(a) )n cases of act&al or impendin" emer"encies caused by serious
accident, fire, flood, typhoon, earth!uake, epidemic or other disasters or
calamity, to prevent loss of life or property, or in cases o$ $orce ma'e&re
or imminent dan"er to p&blic sa$ety/
(b) )n case of &r"ent *or/ to be performed on machineries, e!uipment or
installation, to avoid serio&s loss *#ic# t#e employer *o&ld otherwise
s&$$er/
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
(c) (here the *or/ is necessary to prevent serio&s loss o$ peris#able
"oods/
(d) (here t#e *oman employee #olds a responsible position o$
mana"erial or tec#nical nat&re, or where the woman employee has
been engaged to provide #ealt# and *el$are services/
(e) (here the nature of the *or/ re!uires the manual skill and de"terity of
women workers and the same cannot be per$ormed *it# e.&al
e$$iciency by male *or/ers/
(f) (here the *omen employees are immediate members o$ t#e $amily
operating the establishment or undertaking/ and

(g) Ander ot#er analo"o&s cases e6empted by t#e (ecretary o$ )abor
and 1mployment in appropriate regulations.
Art. 17*. Fa"$"t"e# for &omen.
-#e (ecretary o$ )abor and 1mployment s#all establis# standards that will
ensure the safety and health of women employees. )n appropriate cases, he
shall, by regulations, re!uire any employer to7
(a) Provide seats proper $or *omen and permit them to &se such seats
*#en they are $ree $rom *or/ and d&rin" *or/in" #o&rs, provided
t#ey can per$orm t#eir d&ties in this position *it#o&t detriment to
e$$iciency/

(b) 8o establis# separate toilet rooms and lavatories $or men and *omen
and provide at least a dressin" room $or *omenF

(c) 8o establis# a n&rsery in a *or/place for the benefit of the women
employees therein/ and

(d) 8o determine appropriate minim&m a"e and ot#er standards $or
retirement or termination in special occ&pations such as those of flight
attendants and the like.
Art. 177. Matern"ty $ea.e benef"t#.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
(a) 1very employer shall grant to any pre"nant *oman employee *#o #as
rendered an a""re"ate service o$ at least si6 (7 mont#s $or t#e last
t*elve (18 mont#s, maternity leave of at least t*o (8 *ee/s prior to
t#e e6pected date o$ delivery and another $o&r (4 *ee/s a$ter normal
delivery or abortion with $&ll pay based on her re"&lar or avera"e
*ee/ly *a"es. 8he employer may re.&ire from any woman employee
applying for maternity leave the production of a medical certi$icate
stating that delivery will probably take place within two weeks.
(b) 8he maternity leave s#all be e6tended *it#o&t pay on acco&nt o$
illness medically certified to arise out of the pregnancy, delivery, abortion
or miscarriage, which renders the woman unfit for work, &nless s#e #as
earned &n&sed leave credits from which such e"tended leave may be
charged.
(c) 8he maternity leave provided in this rticle s#all be paid by t#e
employer only $or t#e $irst $o&r (4 deliveries by a woman employee
after the effectivity of this Code.
Matern"ty Lea.e -nder t!e SS La&
(ec. 14-A. >aternity )eave 5ene$it. # female member who has paid at least
three ;0< monthly contributions in the twelve#month period immediately preceding
the semester of her childbirth or miscarriage shall be paid a daily maternity
benefit e!uivalent to one hundred percent ;.CCI< of her average daily salary
credit for >C days or 65 days in case of caesarian delivery, subject to the
following conditions7
;a< employee shall have notified her employer of her pregnancy and the
probable date of her childbirth, which notice shall be transmitted to the
&&&/
;b< full payment shall be advanced by the employer within 0C days from filing
of the maternity leave application/
;c< payment of daily maternity benefits shall be a bar to the recovery of
sickness benefits to be received/
;d< maternity benefits shall be paid only for the first four deliveries or
miscarriages/
;e< the &&& shall immediately reimburse the employer of .CCI of the amount
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
of maternity benefits advanced to the employee/
;f< if an employee member should give birth or suffer miscarriage without the
re!uired contribution, the employer shall pay to the &&& damages
e!uivalent to the benefits which said employee member would otherwise
have been entitled to.
Art. 17). Fam"$y ($ann"n+ #er."e#F "nent".e# for fam"$y
($ann"n+.
(a) 1stablis#ments *#ic# are re.&ired by la* to maintain a clinic or
infirmary shall provide free family planning services to their employees
which shall include, but not be limited to, the application or use of
contraceptive pills and intrauterine devices.
(b) )n coordination with other agencies of the government engaged in the
promotion of family planning, t#e Department o$ )abor and
1mployment s#all develop and prescribe incentive bon&s sc#emes
to enco&ra"e $amily plannin" amon" $emale *or/ers in any
establis#ment or enterprise.
Art. 17@. D"#r"m"nat"on (ro!"b"ted.
0t s#all be &nla*$&l $or any employer to discriminate a"ainst any *oman
employee with respect to terms and conditions of employment solely on acco&nt
o$ #er se6.
-#e $ollo*in" are acts o$ discriminationA
(a) Payment o$ a lesser compensation, including wage, salary or other form
of remuneration and fringe benefits, to a female employees as a"ainst a
male employee, for work of e!ual value/ and
(b) 4avorin" a male employee over a $emale employee *it# respect to
promotion, trainin" opport&nities, st&dy and sc#olars#ip "rants
solely on acco&nt o$ t#eir se6es.
Criminal liability for the *ill$&l commission of any unlawful act as provided in
this rticle or any violation of the rules and regulations issued pursuant to &ection
- hereof s#all be penali3ed as provided in Articles 8?? and 8?9 o$ t#is %ode7
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Provided, 8hat the instit&tion o$ any criminal action under this provision s#all
not bar t#e a""rieved employee $rom $ilin" an entirely separate and distinct
action $or money claims, which may include claims for damages and other
affirmative reliefs. -#e actions #ereby a&t#ori3ed s#all proceed
independently of each other. ;s amended by 2epublic ct +o. >6-=, ?ay .-,
.454<
Art. 171. St"(-$at"on a+a"n#t marr"a+e.
)t shall be &nla*$&l $or an employer to re.&ire as a condition o$ employment
or contin&ation o$ employment t#at a *oman employee s#all not "et
married, or to stip&late e6pressly or tacitly t#at &pon "ettin" married, a
*oman employee s#all be deemed resi"ned or separated, or to act&ally
dismiss, disc#ar"e, discriminate or ot#er*ise pre'&dice a *oman employee
merely by reason o$ #er marria"e.
Art. 175. Pro!"b"ted at#.
)t shall be unlawful for any employer7

(1) -o deny any *oman employee t#e bene$its provided $or in t#is
%#apter or to disc#ar"e any *oman employed by #im $or t#e
p&rpose o$ preventin" #er $rom en'oyin" any o$ t#e bene$its provided
under this Code.

(2) -o disc#ar"e s&c# *oman on acco&nt o$ #er pre"nancy, or *#ile on
leave or in con$inement d&e to #er pre"nancy/
(3) -o disc#ar"e or re$&se t#e admission o$ s&c# *oman &pon ret&rnin"
to #er *or/ $or $ear t#at s#e may a"ain be pre"nant.
Art. 17>. C$a##"f"at"on of erta"n &omen &or%er#.
Any *oman *#o is permitted or suffered to *or/, with or without
compensation, in any ni"#t cl&b, cocktail lounge, massage clinic, bar or similar
establis#ments &nder t#e e$$ective control or s&pervision o$ t#e employer
$or a s&bstantial period o$ time as determined by t#e (ecretary o$ )abor
and 1mployment, s#all be considered as an employee of such establishment
for purposes of labor and social legislation.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
REP=BLIC ACT NO. 5>55
An At De$ar"n+ Se/-a$ Eara##ment =n$a&f-$ "n t!e Em($oyment3
Ed-at"on or Tra"n"n+ En."ronment3 and for Ot!er P-r(o#e#
SECTION *. Declaration o$ Policy. # -#e (tate s#all val&e t#e di"nity o$
every individ&al, enhance the development of its human resources, guarantee
full respect for human rights, and uphold the dignity of workers, employees,
applicants for employment, students or those undergoing training, instruction or
education. -o*ards t#is end, all $orms o$ se6&al #arassment in t#e
employment, ed&cation or trainin" environment are #ereby declared
&nla*$&l.
SECTION 7. =or/, 1d&cation or -rainin" -2elated, (e6&al Carassment
De$ined. # =or/, ed&cation or trainin"-related se6&al #arassment is
committed by an employer, employee, manager, supervisor, agent of the
employer, teacher, instructor, professor, coach, trainor, or any ot#er person
*#o, #avin" a&t#ority, in$l&ence or moral ascendancy over anot#er in a
*or/ or trainin" or ed&cation environment, demands, re.&ests or
ot#er*ise re.&ires any se6&al $avor $rom t#e ot#er, re"ardless o$ *#et#er
t#e demand, re.&est or re.&irement $or s&bmission is accepted by t#e
ob'ect o$ said Act.

;a< 0n a *or/-related or employment environment, se"ual harassment is
committed when7

(1) -#e se6&al $avor is made as a condition in t#e #irin" or in t#e
employment, re-employment or contin&ed employment o$ said
individ&al, or in "rantin" said individ&al $avorable compensation,
terms o$ conditions, promotions, or privile"esF or t#e re$&sal to
"rant t#e se6&al $avor res&lts in limitin", se"re"atin" or classi$yin"
t#e employee *#ic# in any *ay *o&ld discriminate, deprive
ordiminis# employment opport&nities or ot#er*ise adversely a$$ect
said employee/
(2) -#e above acts *o&ld impair t#e employeeBs ri"#ts or privile"es
&nder e6istin" labor la*sF or
(; -#e above acts *o&ld res&lt in an intimidatin", #ostile, or o$$ensive
environment $or t#e employee.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
;b< 0n an ed&cation or trainin" environment, se"ual harassment is committed7
(1) A"ainst one *#o is &nder t#e care, c&stody or s&pervision o$ t#e
o$$enderF
(2) A"ainst one *#ose ed&cation, trainin", apprentices#ip or t&tors#ip
is entr&sted to t#e o$$enderF
(3) =#en t#e se6&al $avor is made a condition to t#e "ivin" o$ a passin"
"rade, or t#e "rantin" o$ #onors and sc#olars#ips, or t#e payment
o$ a stipend, allo*ance or ot#er bene$its, privile"es, or
considerationF or
(4 =#en t#e se6&al advances res&lt in an intimidatin", #ostile or
o$$ensive environment $or t#e st&dent, trainee or apprentice.
Any person *#o directs or ind&ces anot#er to commit any act o$ se6&al
#arassment as herein defined, or *#o cooperates in the commission thereof
by another without which it would not have been committed, s#all also be #eld
liable &nder t#is Act.

SECTION ). D-ty of t!e Em($oyer or Eead of Off"e "n a <or%9re$ated3
Ed-at"on or Tra"n"n+ En."ronment. # )t shall be the duty of the employer or the
head of the work#related, educational or training environment or institution, to
prevent or deter the commission of acts of se"ual harassment and to provide the
procedures for the resolution, settlement or prosecution of acts of se"ual
harassment. 8owards this end, the employer or head of office shall7
(a) Prom&l"ate appropriate r&les and re"&lations in consultation with and
joint.y approved by the employees or students or trainees, through their
duly designated representatives, prescribin" t#e proced&re $or t#e
investi"ation o$ se6&al #arassment cases and t#e administrative
sanctions therefor.
dministrative sanctions s#all not be a bar to prosec&tion in t#e
proper co&rts $or &nla*$&l acts o$ se6&al #arassment.
8he said rules and regulations issued pursuant to this subsection ;a< shall
include, among others, guidelines on proper decorum in the workplace
and educational or training institutions.
(b) %reate a committee on decor&m and investi"ation of cases on se"ual
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
harassment. 8he committee shall conduct meetings, as the case may be,
with officers and employees, teachers, instructors, professors, coaches,
trainors, and students or trainees to increase understanding and prevent
incidents of se"ual harassment. )t shall also conduct the investigation of
alleged cases constituting se"ual harassment.
)n the case of a *or/-related environment, t#e committee s#all be
composed o$ at least one (1 representative eac# $rom t#e mana"ement,
t#e &nion, i$ any, t#e employees $rom t#e s&pervisory ran/, and $rom t#e
ran/ and $ile employees.
0n t#e case o$ t#e ed&cational or trainin" instit&tion, the committee shall be
composed o$ at least one (1 representative $rom t#e administration, t#e
trainors, instr&ctors, pro$essors or coac#es and st&dents or trainees, as
t#e case may be.
8he employer or head of office, educational or training institution shall
disseminate or post a copy of this ct for the information of all concerned.
SECTION @. L"ab"$"ty of t!e Em($oyer3 Eead of Off"e3 Ed-at"ona$ or
Tra"n"n+ In#t"t-t"on. # -#e employer or #ead o$ o$$ice, ed&cational or
trainin" instit&tion s#all be solidarily liable $or dama"es arisin" $rom t#e
acts o$ se6&al #arassment committed in t#e employment, ed&cation or
trainin" environment i$ t#e employer or #ead o$ o$$ice, ed&cational or
trainin" instit&tion is in$ormed o$ s&c# acts by t#e o$$ended party and no
immediate action is ta/en.
SECTION 1. Inde(endent At"on for Dama+e#. # +othing in this ct shall
preclude the victim of work, education or training#related se"ual harassment from
instituting a separate and independent action $or dama"es and ot#er
a$$irmative relie$.
SECTION 5. Pena$t"e#. # ny person who violates the provisions of this ct
shall, upon conviction, be penali%ed by imprisonment o$ not less t#an one (1
mont# nor more t#an si6 (7 mont#s, or a $ine o$ not less t#an -en
t#o&sand pesos (P10,000 nor more t#an -*enty t#o&sand pesos
(P80,000, or bot# s&c# $ine and imprisonment at t#e discretion o$ t#e
co&rt.

ny action arising from the violation of the provisions of this ct shall prescribe
in t#ree (; years.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter II
EMPLOCMENT OF MINORS
Art. 174. M"n"m-m em($oyab$e a+e.
(a) No c#ild belo* $i$teen (15 years o$ a"e s#all be employed,
e6cept
when he works directly under the sole responsibility of his parents or
guardian, and
his employment does not in any way interfere with his schooling.
(b) ny person bet*een $i$teen (15 and ei"#teen (1? years o$ a"e may
be employed $or s&c# n&mber o$ #o&rs and s&c# periods o$ t#e day
as determined by the &ecretary of Labor and 1mployment in appropriate
regulations.
(c) 8he foregoing provisions shall in no case allo* t#e employment o$ a
person belo* ei"#teen (1? years o$ a"e in an &nderta/in" *#ic# is
#a3ardo&s or deleterio&s in nat&re as determined by the &ecretary of
Labor and 1mployment.
Art. 1)6. Pro!"b"t"on a+a"n#t !"$d d"#r"m"nat"on.
No employer s#all discriminate a"ainst any person in respect to terms and
conditions of employment on acco&nt o$ #is a"e.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter III
EMPLOCMENT OF EO=SEEELPERS
Art. 1)1. Co.era+e.
8his Chapter shall apply to all persons rendering services in households for
compensation.
Dome#t" or !o-#e!o$d #er."e shall mean service in t#e employerEs
#ome *#ic# is &s&ally necessary or desirable $or t#e maintenance and
en'oyment t#ereo$ and includes ministering to the personal comfort and
convenience of the members of the employerBs household, including services of
family drivers.
Art. 1)*. Contrat of dome#t" #er."e.
8he original contract of domestic service s#all not last $or more t#an t*o (8
years but it may be rene*ed for such periods as may be a"reed &pon by the
parties.
Art. 1)7. M"n"m-m &a+e.
Fousehelpers shall be paid the following minimum wage rates7
;.< 1ight hundred pesos ;P5CC.CC< a month for househelpers in ?anila,
Nue%on, Pasay, and Caloocan cities and municipalities of ?akati, &an
3uan, ?andaluyong, ?untinlupa, +avotas, ?alabon, ParaOa!ue, Las
PiOas, Pasig, ?arikina, Palen%uela, 8aguig and Pateros in ?etro ?anila
and in highly urbani%ed cities/
;-< &i" hundred fifty pesos ;P>=C.CC< a month for those in other chartered
cities and first#class municipalities/ and

;0< :ive hundred fifty pesos ;P==C.CC< a month for those in other
municipalities.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Provided, 8hat the employers shall review the employment contracts of their
househelpers every three ;0< years with the end in view of improving the terms
and conditions thereof.
Provided, further, 8hat those #o&se#elpers *#o are receivin" at least <ne
t#o&sand pesos (P1,000.00 s#all be covered by t#e (ocial (ec&rity (ystem
(((( and be entitled to all t#e bene$its provided t#ere&nder. ;s amended
by 2epublic ct +o. 6>==, ugust .4, .440<
Art. 1)). M"n"m-m a#! &a+e.
-#e minim&m *a"e rates prescribed under this Chapter shall be the basic cash
wages which shall be paid to the househelpers in addition to lod"in", $ood and
medical attendance.
Art. 1)@. A##"+nment to non9!o-#e!o$d &or%.
No #o&se#elper s#all be assi"ned to *or/ in a commercial, ind&strial or
a"ric&lt&ral enterprise at a *a"e or salary rate lo*er t#an t#at provided $or
a"ric&lt&ral or non-a"ric&lt&ral *or/ers as prescribed #erein.
Art. 1)1. O((ort-n"ty for ed-at"on.
0$ t#e #o&se#elper is &nder t#e a"e o$ ei"#teen (1? years, t#e employer
s#all "ive #im or #er an opport&nity $or at least elementary ed&cation. 8he
cost o$ ed&cation s#all be part o$ t#e #o&se#elperEs compensation, unless
there is a stipulation to the contrary.
Art. 1)5. Treatment of !o-#e!e$(er#.
8he employer shall treat the househelper in a just and humane manner. 0n no
case s#all p#ysical violence be &sed &pon t#e #o&se#elper.
Art. 1)>. Board3 $od+"n+3 and med"a$ attendane.
-#e employer s#all $&rnis# t#e #o&se#elper, $ree o$ c#ar"e, s&itable and
sanitary livin" .&arters as *ell as ade.&ate $ood and medical attendance.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
Art. 1)4. Indemn"ty for -n;-#t term"nat"on of #er."e#.
)f the period of household service is fi"ed, neit#er t#e employer nor t#e
#o&se#elper may terminate t#e contract be$ore t#e e6piration o$ t#e term,
e6cept $or a '&st ca&se. )f the househelper is &n'&stly dismissed, he or she
shall be paid t#e compensation already earned pl&s t#at $or $i$teen (15
days by way of indemnity.
0$ t#e #o&se#elper leaves *it#o&t '&sti$iable reason, #e or s#e s#all $or$eit
any &npaid salary d&e #im or #er not e6ceedin" $i$teen (15 days.
Art. 1@6. Ser."e of term"nat"on not"e.
0$ t#e d&ration of the household service is not determined either in stipulation
or by the nature of the service, t#e employer or t#e #o&se#elper may "ive
notice to p&t an end to t#e relations#ip $ive (5 days before the intended
termination of the service.
Art. 1@1. Em($oyment ert"f"at"on.
@pon t#e severance of the household service relation, t#e employer s#all "ive
t#e #o&se#elper a *ritten statement o$ t#e nat&re and d&ration o$ t#e
service and #is or #er e$$iciency and cond&ct as #o&se#elper.
Art. 1@*. Em($oyment reord.
-#e employer may /eep s&c# records as #e may deem necessary to re$lect
t#e act&al terms and conditions o$ employment o$ #is #o&se#elper, which
the latter shall authenticate by signature or thumbmark upon re!uest of the
employer.
CODES AND NOTES ON LABOR STANDARDS
by PORFERIO JR. and MELFA SALIDAGA
C!a(ter IB
EMPLOCMENT OF EOME<ORDERS
Art. 1@7. Re+-$at"on of "nd-#tr"a$ !ome&or%er#.
8he employment o$ ind&strial #ome*or/ers and $ield personnel s#all be
re"&lated by the government t#ro&"# the appropriate regulations issued by the
(ecretary o$ )abor and 1mployment to ensure the general welfare and
protection of homeworkers and field personnel and the industries employing
them.
Art. 1@). Re+-$at"on# of Seretary of Labor.
8he regulations or orders to be issued pursuant to this Chapter shall be designed
to assure the minimum terms and conditions of employment applicable to the
industrial homeworkers or field personnel involved.
Art. 1@@. D"#tr"b-t"on of !ome&or%.
:or purposes of this Chapter, the
Em($oyer of !ome&or%er# includes any person, natural or artificial who, for
his account or benefit, or on behalf of any person residing outside the country,
directly or indirectly, or through an employee, agent contractor, sub#contractor or
any other person7
(1) Delivers, or ca&ses to be delivered, any "oods, articles or materials
to be processed or $abricated in or abo&t a #ome and t#erea$ter to be
ret&rned or to be disposed o$ or distrib&ted in accordance *it# #is
directionsF or
(8 (ells any "oods, articles or materials to be processed or $abricated
in or abo&t a #ome and t#en reb&ys t#em a$ter s&c# processin" or
$abrication, eit#er by #imsel$ or t#ro&"# some ot#er person.