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 $a< o$ 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 $a< o$ 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 $a< o$ 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($oyee# a. 1mployees paid by res<s entitled to the mandated .0 th #month pay based on their total earnings during the calendar year. b. -#ose *it# m<iple employer entitled to the re!uired .0 th month pay from all their private employers regardless of their total earnings from each or all of their employers. c. Private sc#ool teac#ers entitled to the re!uired .0 th month pay if they CODES AND NOTES ON LABOR STANDARDS by PORFERIO JR. and MELFA SALIDAGA have rendered service for at least one ;.< month within a year. 17 t! 9mont! Pay of re#"+ned or Se(arated Em($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 $or a"ric<&ral and non-a"ric<&ral employees and workers in each and every region of the country s#all be t#ose prescribed by t#e 2e"ional -ripartite =a"es and Prod&ctivity 5oards. ;s amended by &ection 0, 2epublic ct +o. >6-6, 3une 4, .454<. <!o #et# m"n"m-m &a+eI o 2egional 8ripartite (ages and Productivity Doard o Congress M"n"m-m &a+e the lowest wage rate fi"ed by law that an employer can pay his employees. Complaint may be brought before the *9L1 regional office ;rt. .-4< or Labor rbiter ;rt. -.6<. worker is daily-paid if he gets paid only for days he actually worked. worker is mont#ly-paid if his monthly rate covers all the days of the month. gricultural wage rates are generally lower than the industrial. A"ric<&ral rate applies to farm work from land preparation to harvesting/ ind&strial rate applies to manufacturing or processing of farm products. Art. 166. Pro!"b"t"on a+a"n#t e$"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<ative 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<ations, 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<, 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<&ral, bet*een midni"#t and si6 oEcloc/ in the morning of the following day/ or (c) )n any a"ric<&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<s 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< 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$$enderF (3) =#en t#e se6&al $avor is made a condition to t#e "ivin" o$ a passin" "rade, or t#e "rantin" o$ #onors and sc#olars#ips, or t#e payment o$ a stipend, allo*ance or ot#er bene$its, privile"es, or considerationF or (4 =#en t#e se6&al advances res< in an intimidatin", #ostile or o$$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<&ral enterprise at a *a"e or salary rate lo*er t#an t#at provided $or a"ric<&ral or non-a"ric<&ral *or/ers as prescribed #erein. Art. 1)1. O((ort-n"ty for ed-at"on. 0$ 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.