Beruflich Dokumente
Kultur Dokumente
THE LABOR CODE OF THE PHILIPPINES calculated to insure economic stability of all
component elements of society
Chapter 1
GENERAL PROVISIONS Constitutional provisions related to Labor:
Art. II
Art. 1-2 o Sec. 9
Labor Code – took effect on November 1, 1974; “The State shall promote a just and
− charter of human rights and bill of dynamic social order that will ensure
obligation for every working man the prosperity and independence of
the nation and free the people from
Labor legislation – statutes, regulations and poverty through policies that provide
jurisprudence governing the relations between adequate social services, promote full
capital and labor, by providing certain standards employment, a rising standard of
and a legal framework for negotiating, adjusting living, and an improved quality of life
and administering those standards and other for all.”
incidents of employment.
• Labor standards – sets out the minimum o Sec. 10
terms, conditions and benefits of “The State shall promote social
employment that employers must comply justice in all phases of national
with development.”
o Minimum requirement required by
law and regulations relating to o Sec. 18
wages, hours of work, COLA, and “The State affirms labor as a
other monetary welfare benefits primary social economic force. It
including occupational safety and shall protect the rights of workers
health standards and promote their welfare.”
o Books 1 (Pre-Employment), Book
2 (Human Resources Development Art. III, Sec. 8
Program), Book 3 (Conditions of “The right of the people, including
Employment),and Book 4 (Health, those employed in the public and
Safety & Social Welfare Benefits) of private sectors, to form unions,
the Labor Code associations, or societies for
• Labor relations – defines the status, rights purposes not contrary to law shall
and duties and the institutional not be abridged.”
mechanisms that govern the individual and
collective interactions of employers, Art. VI
employees, or their representatives. Along with other sectors, labor is entitled to
o Book 5 (Labor Relations) and seats allotted to party-list representatives fro 3
consecutive terms after the ratification of the
Book 6 (Post-Employment)
Constitution
Social legislation – includes laws that provide
Art. IX-B, Sec 2[3], [5] and [6]
particular kinds of protection or benefits to society
“No officer or employee of the
or segments thereof in furtherance of social justice
civil service shall be removed or
(the aim of labor laws)
suspended except for cause
provided by law.”
social justice – the aim of labor laws; raison
de’tre
“The right to self-organization
- promotion of the welfare of all the people, the
shall not be denied to government
adoption by the government of measures
employees.”
BOOK ONE
PRE-EMPLOYMENT
Darvin vs. CA and PP
Art. 12 G.R. No. 125044 July 13, 1998
Employment problem is multi-faceted and the By themselves, procuring a passport, airline tickets and
foreign visa for another individual, without more, can
solution is the concern of not only one or two hardly qualify as recruitment activities.
government agencies but the concern of the entire
governmental system.
Art. 14
DOLE- the primary policy-making, programming, To pursue its responsibility to promote
coordinating, and administrative body of the employment opportunities, the DOLE carries out
Executive Branch programs for local and overseas employment.
Effective allocation of manpower resources in local
Purpose of Book One: employment is assigned to the BLE and to POEA
TO regulate the activities of agencies authorized for overseas employment.
to recruit and deploy workers for overseas
employment. The information or data obtained by the DOLE and
POEA will serve as guide in determining domestic
TITLE I labor needs.
Recruitment & Placement of Workers
An employer with at least 6 employees is required
Art. 13 to submit to the nearest public employment office
Art. 13 (b):this provision creates a presumption the ffg:
that the individual or entity is engaged in • list of existing job vacancies or opening
recruitment and placement whenever he is dealing • list of new employees, if any
with 2 or more persons to whom in consideration • termination, lay-off or retirement
of a fee, offer, or promise of employment is made • total number of employed workers for the
in the course of the canvassing, enlisting, period, and
contracting, transporting, utilizing, hiring, or • request for assistance, if needed, to fill the
procuring of workers' vacancies
PP vs Panis Art. 15
142 SCRA 664 (Bureau of Local Employment)
The number of persons dealt with is not an essential BLE & POEA were created by the mandate of
ingredient of the act of recruitment and placement of E.O. 797
workers. Any of the acts mentioned in the basic rule in
Article 13(b) will constitute recruitment and placement PESO
even if only one prospective worker is involved. The
proviso merely lays down a rule of evidence that where a • RA 8759; intended to serve as employment
fee is collected in consideration of a promise or offer of service and information center in its area of
employment to two or more prospective workers, the operation.
individual or entity dealing with them shall be deemed to • regularly obtains list of job vacancies from
be engaged in the act of recruitment and placement. The employers, publicizes them, invites and
words "shall be deemed" create that presumption.
evaluates applicants, and refers them for
probable hiring.
PP vs. Goce • Also provides training and educational
247 SCRA 780 guidance and employment counseling
There is illegal recruitment when one gives the impression services.
of having the ability to send a worker abroad such that the
latter were convinced to give her the money she
demanded in order to be so employed.
overseas share the same risks and burdens whether their affecting Filipino overseas.
employers be Filipino or foreign. • It also formulates an integrated program for
The underlying regulatory policy, as we see it, is that the promotion of the welfare of Filipinos
Filipino seamen working on ocean-going vessels should overseas for implementation by suitable
receive the same wages and benefits, without regard to
the nationality or nationalities of the vessels on which they
existing agencies.
serve. • Attached to the DFA
***superseded by BP 79
Art. 20
Basis of Compensation:
(National Seamen Board)
Dumez Co. vs. NLRC powers and duty:
G.R. No. 74495 July 11, 1996 • To provide free placement services for
It is proper for the POEA to have taken judicial notice of seamen;
foreign law applicable to a claim by a Filipino overseas • To regulate and supervise the activities of
contract worker. True, a foreign law, being a matter of agents or representatives of shipping
evidence, must be alleged and proved, in order to be companies in the hiring of seamen for
recognized and applied in a particular controversy
involving conflicts of laws, jurisprudence on this matter
overseas employment; and secure the best
was not meant to apply to cases before administrative or possible terms of employment for contract
quasi-judicial bodies in the light of the well-settled rule that seamen workers and secure compliance
administrative and quasi-judicial bodies are not bound therewith; and
strictly by technical rules • To maintain a complete registry of all
Filipino seamen.
Art. 18
(Ban on Direct Hiring ) − now the POEA
General rule; Direct hiring of Filipino workers by a − jurisdiction on money claims (Art. 20, (b))
foreign employer is not allowed. transferred to NLRC (RA 8042)
Except: by members of diplomatic corps and other
mentioned in Art. 13 and name hires An agreement that diminishes the employee's pay
and benefits in a POEA-approved contract is void,
name hiree – those individual workers who are unless such such subsequent agreement is
able to secure contract for overseas without the approved by POEA.
assitance or participation of an agency. Their hiring
nonetheless has to be processed through the Wallem Shipping Inc. vs. Ministry of Labor
POEA.
G.R. No. L-50734-37 February 20, 1981
purpose of the law: to avoid diplomatic backlash. But even if there had been such a threat, respondents'
behavior should not be censured because it is but natural
To protect the good name of the country by
for them to employ some means of pressing their
carefully processing or worker;s papers, thus demands for petitioner, who refused to abide with the
eliminating the misfit, poorly trained and terms of the Special Agreement, to honor and respect the
incompetent workers same. They were only acting in the exercise of their
rights, and to deprive them of their freedom of expression
Art. 19 is contrary to law and public policy. There is no serious
misconduct to speak of in the case at bar which would
(Office of Emigrant Affairs) justify respondents' dismissal just because of their
• promote the well being of emigrants and firmness in their demand for the fulfillment by petitioner of
maintain their close link to the homeland its obligation it entered into without any coercion, specially
• abolished and its function was transferred on the part of private respondents.
to the Commission on Filipinos Overseas On the other hand, it is petitioner who is guilty of breach
(BP 79) of contract when they dismissed the respondents without
just cause and prior to the expiration of the employment
• CFO provides advice and assistance to the
contracts. As the records clearly show, petitioner
President and the Congress for the voluntarily entered into the Special Agreement with ITF
formulation of policies and measures
and by virtue thereof the crew men were actually given workers.
their salary differentials in view of the new rates. It cannot − Formerly known as the Welfund
be said that it was because of respondents' fault that − has a role in repatriation of migrant workers
petitioner made a sudden turn-about and refused to honor
the special agreement.
Art. 22
(Mandatory Remittance of
Read: Vir-jen Shipping and Marine Services vs Foreign Exchange Earnings)
NLRC (115 SCRA 347 and 125 SCRA 577) purpose: to boost the Philippine foreign exchange
reserves.
Art. 21 Mandatory remittance – amount or portion of the
(Foreign Service Role and Participation) basic salary of OFW required under existing laws
purpose: to inform the home country of the status and regulations to be remitted by the workers to
of workers employed in their respective areas of their beneficiaries in the Philippines and sold for
assignment. pesos to the Philippine banking system
4 gov't agencies tasked to promote the welfare and 50%-80% of the basic salary – prescribed
protect the rights of migrant workers. percentage of foreign exchange remittance (EO
• DFA 857)
◦ Legal Assistant for Migrant Workers
(LAMW) – tasked to provide and Art. 23. - repealed
coordinate all legal assistant services Art. 24. - repealed
to Filipinos in distress
▪ administers the Legal Assistance Chapter II
Fund for Migrant Workers REGULATION OF RECRUITMENT
• DOLE ANDPLACEMENT ACTIVITIES
• POEA
• OWWA Art. 25
(Private sector participation in the recruitment and
Migrant Workers and other Overseas Filipinos placement of workers)
Resource Center – in Philippine embassies where
there are more than 20,000 migrant workers The POEA was granted the “power of subordinate
− provides assistance to migrant workers legislation”
(health, welfare, conciliation of disputes
from employer-employee relationship) The regulations issued by the administrative
− managed by a Labor Attaché agencies have the force of law.
documentation and processing for purposes 20 years – for illegal recruitment cases involving
of deployment, in cases where the economic sabotage
deployment does not actually take place
without the workers fault. Title II
Employment Of Non-Resident Aliens
4 types of illegal recruitment Art. 40 – Art. 42
• simple Only non-resident aliens are required to secure
• non-licensee employment permit.
• syndicated - carried out by a group of 3 or
more conspiring with one another. Resident aliens & immigrants are required an Alien
• large scale - committed against 3 or more Employment Registration Certificate (AERC)
persons individually or as a group.
prohibitions on hiring foreigners:
If committed by a syndicate or in large scale shall • Anti Dummy Law
be considered an offense involving economic ◦ prohibits employment of aliens in
sabotage. entities that own or control a right,
franchise, privilege, property or
The POEA or the Sec. of Labor do not have the business whose exercise or enjoyment
power to issue a warrant of search and seizure. is reserved by law only to Filipinos or to
However, the power of the Secretary or his duly a corporation whose capital should be
authorized representatives to order the closure of at least 60% Filipino-owned
illegal recruitment establishments still subsists, the • Art. XVI, Sec. 11, Constitution
same being considered essentially administrative ◦ mass media enterprise can be owned
and regulatory in nature. or managed only by Filipinos or by a
corporation or associations wholly
Procedure to order the closure of an illegal owned or managed by them.
recruitment establishment (see VIII, Anti-Illegal • Omnibus Investment Code
Recruitment Programs, RA 8042) ◦ enterprises registered under this law
may employ foreign nationals in
Art. 39 technical, supervisory, or advisory
(Penalties) positions.
(see Section 7, RA 8042)
Department Order No. 12, Series of 2001
venue: RTC of the province where the crime was • Omnibus Guidelines for the Issuance of
committed, or where the offended party actually Employment Permits to Foreign Nationals
resides, ti the exclusion of other courts • prvides a
◦ list if individuals required to apply for
period for resolution:
Alien Employment Permit (AEP)
• 30 days from filing – termination of
◦ list of individuals exempt from the AEP
preliminary investigation
requirement
◦ list of bases of the issuance of AEP
filing of information
• 24 hours from termination of investigation –
permits shall be valid for a period of 1 year
if investigation was conducted by a
prosecutor
application for renewal shall be filed 15 days prior
• 48 hours from termination of investigation – to the expiration of the permit.
if investigation was conducted by a judge
• organize and constitute various standing • perform such other duties and functions
committees, subsidiary groups, or technical necessary to carry out the provisions of this
working groups for efficient integration, Act consistent with the purposes of the
coordination and monitoring technical creation of TESDA.
education and skills development programs
at the national, regional, and local levels; The Authority is mandated to establish Technical
• enter into, make, execute, perform and Skills Development Committees at the regional and
carry-out domestic and foreign contracts local levels to coordinate and monitor the delivery
subject to existing laws, rules and of skills development activities.
regulations.
• restructure the entire sub-sector consisting Middle-level manpower – who have acquired
of all institutions and programs involved in practical skills and knowledge through formal or
the promotion and development of middle- non-formal education and training equivalent to at
level manpower through upgrading, merger least a secondary education but preferably at post-
and/or phase-out following a user-led secondary education with a corresponding degree
strategy; of diploma or skilled workers who have become
• approve trade skills standards and trade highly competent in their trade or craft as attested
tests as established and conducted by by industry
private industries;
• establish and administer a system of training – systematic development of the
accreditation of both public and private attitude/knowledge/skill behavior pattern required
institutions; for the adequate performance of a given task
• establish, develop and support institutions'
trainors' training and/or programs; Incentive Scheme
• lend support and encourage increasing • developed by the TESDA to encourage
utilization of the dual training system as industries and institutions to provide high-
provided for by Republic Act. No. 7686; quality technical education and skills
development opportunities.
• exact reasonable fees and charges for
such tests and trainings conducted and • In the form of an additional deduction from
retain such earnings for its own use, the taxable income which is equivalent to a
subject to guidelines promulgated by the certain percentage of the value of labor
Authority; training expenses incurred for development
programs
• allocate resources, based on the
Secretariat's recommendations for the • conditions:
programs and subjects it shall undertake ◦ the apprenticeship program is
pursuant to approved National Technical recognized by the DOLE
Education and Skills Development Plan; ◦ apprentices should be paid the
• determine and approve systematic funding minimum wage; and
schemes such as the Levy and Grant ◦ the deduction shall not exceed 10% of
scheme for technical education and skills the total direct labor wage expended by
development purposes; the employer during the taxable year
• create, when deemed necessary, an
Advisory Committee which shall provide Title II
expert and technical advice to the Board to Training and Employment of Special Workers
be chosen from the academe and the Chapter 1
private sector: Provided, That in case the APPRENTICESHIP
Advisory Committee is created, the Board Art. 57-Art. 60
is hereby authorized to set aside a portion apprentice – worker who is covered by an
of its appropriation for its operation; and apprenticeship agreement with an individual
employer or any of the entities recognized under
BOOK THREE
The Secretary of Labor may cancel any learnership CONDITIONS OF EMPLOYMENT
program if upon inquiry, it is found that the
justification for the program no longer exists Title I
Working Conditions and Rest Periods
penalty for violation:
fine: P1, 000.00 – P10, 000.00 Chapter 1
range of imprisonment:3 months – 3 years HOURS OF WORK
• when the tour of duty of the employee is at the work started before the 8th hour is
night time, the receipt of overtime pay will necessary to prevent serious obstruction or
not preclude the right to night differential prejudice to the business or operations of
pay. The latter is payment for work done the employer.
while the other is payment for the excess of
the regular 8-hour work. If the worker willfully refuses to perform overtime
work in any of the instances specified by law, he
Chinese overtime – a system of overtime may be legally dismissed on the ground of
payment in which salaried employee's regular rate insubordination.
is calculated by dividing his salary by the total
number of hours he work. Thus, the greater the (Art. 90)
number of hours, the lower the rate of pay per hour Computation of Additional Compensation
unduly reducing the take home pay of the Regular wage
employee. “All payments which the parties have agreed shall
be received during the work week, including
Day – 24-hour period which commences from the piecework wages, differential payments for
time the employee starts to work. working at undesirable times, and the cost of
board and lodging customarily furnished the
(Art. 88) employee.” (NAWAS ruling)
Undertime not Offset by Overtime • said ruling was superseded in subsequent
decisions of the SC
purpose: allowing this would result to unfairness. “in the computation of overtime
• Employer: will be exempt from paying pay, the premium pay for work
additional pay for overtime work done on Sundays, holidays and at
• Employee: would be allowed to schedule night inclusing fringe benefits,
his working hours at will thereby destroying which are ocassionally and not
the regular working schedule. regularly received and not by all
employees SHOULD NOT be added
(Art. 89) to the basi pay. Such inclusion into
Emergency Overtime Work the regular or basic pay militates
compulsory overtime work: agaisnt the basic rationale of
• When the country is at war or when any overtime pay, which simply is the
other national or local emergency has been extra compensation for the
declared by Congress or the Chief additional work done beyond that
Executive; contemplated in the employment
• When it is necessary to prevent loss of life contract.
or property or in case of imminent danger • Regular wage DO Not include COLA,
to public safety due to an actual or longevity pay of other fringe benefits which
impending emergency in the locality item constitutes extra pay or additions to
caused by serious accidents, fire, flood, the regular or basic pay
typhoon, earthquake, epidemic or other
disaster or calamity; “regularity and continuity test” of the benefits
• When there is urgent work to be performed enjoyed by the employees – condition precedent
on machines, installation or equipment, in before such additional payments or benefits are
order to avoid serious loss or damage to taken into account. (NAWASA ruling, already
the employer or some other cause of superseded)
similar nature;
• When the work is necessary to prevent regular base pay – excludes money received by
loss or damage to perishable goods; an employee in different concepts, such as
Christmas bonus and other fringe benefits.
• Where the completion or continuation of
(Art. 92)
When Employer may Require Work on a Rest Day Premium pay is not included in the computation of
13th month pay.
General rule: No employee shall be required
against his will to work on his scheduled rest day. Waiver of compensation for work on rest days and
Exceptions: holidays is not valid.
• in cases of actual or impending
emergencies Chapter 3
• in case of urgent work to be performed HOLIDAY: SERVICE INCENTIVE LEAVES AND
• in the event of abnormal pressure of work SERVICE CHARGES
due to special circumstances
• to prevent loss or damage to perishable (Art. 94)
goods Right to Holiday Pay
• nature of the work requires continuous
operations holiday – consecrated day, a religious festival, a
• other analogous circumstances day of exemption, that is cessation from work, a
day of festivity, recreation or amusement
when an employee volunteers to work on his rest
day, he shall express such desire in writing, subject legal holiday – day designated or set part by the
to the provision regarding additional compensation. legislature, for a purpose within the meaning of the
term holiday, in order to commemorate an
(Art. 93) important event.
Compensation for Rest day,
Sunday or Holiday Work Holiday pay
• premium given to employees pursuant to
additional compensation of at least 30% of his law even if he is not suffered to work on a
regular wage regular holiday.
An employee shall be entitled to additional • If worker did not work on regular holiday,
he is entitled to 100% of his basic pay; of holiday pay benefits pursuant to the rule which
• If he worked, he is entitled to 200% thereof. excluded employees uniformly paid by the month
from the same, was in compliance with such
Regular Holidays presumably valid rule until it was declared null and
• New year’s Day-January 1 void.
• Maundy Thursday-Movable date
• Good Friday-Movable date Divisor which indicates that the 11 legal holidays
• Eidul Fitr-Movable date have already been included in the salary of
monthly paid employees
• Araw ng Kagitingan- April 9
6-day working schedule
(Bataaan and Corregidor Day)
• 314 divisor
• Labor Day- May 1
5-day working schedule
• Independence Day- June 12
• 261 divisor
• National Heroes Day-Last Sunday of
August
effects of absences on holiday pay
• Bonifacio Day- November 30
Conditions on day entitlement to
• Christmas Day-December 25
preceding the holiday holiday pay
• Rizal Day-December 30
On LOA with pay Yes
Nationwide Special Holidays On LOA without pay No
• Ninoy Aquino Day-August 21
• All Saints Day-November 1 Non-working day or rest Yes (provided he
• Last Day of the Year-December 31 day of the employee work on the day
immediately
preceding the non-
Regular Holiday Special Day working or rest day)
Covered employee who Covered employee who 2 successive regular holiday
does not report for work does not report for work
during regular holidays during special day is not if the employee absents Not entitled to holiday
is paid 100% of his entitled to any himself from work without pay for both holidays
regular wage compensation under the pay on the day
principle of “no work, no immediately preceding the
pay” 1st regular holiday
An employee who An employee who If he works on the 1st Yes, entitled to pay
reports for work on a reports for work on a holiday on the 2nd holiday
regular holiday is special day is entitled to
entitled to 200% of his an additional 30% of his Holiday pay of certain employees
regular wage basic pay. private school teachers – may not be paid for the
regular holidays during semestral vacations
Additional 50% if such
special day falls on his faculty member paid per lecture hour – not entitled
rest day. to holiday pay
Monthly paid employees are not excluded from the employees paid by result – their holiday pay shall
benefits of holiday pay. Provisions of Section 2, not be less than his average daily earnings for the
Rule IV, Book III of IRR and Policy Instruction No 9 last 7 working days preceding the regular holiday.
have been declared null and void in the case of Seasonal workers – may not be paid the required
IBAAEU vs Inciong et al (1984) holiday pay during off-season when they are not at
work
under the operative fact doctrine, the nonpayment
Where a regular holiday falls on a Sunday, the Under RA 9262, victims of “violence against
following day shall be considered a special holiday women and children are entitled to take a paid
for purposes of the Labor Code, unless said day is leave of absence up to 10 days in addition to other
also a regular holiday. (Sec. 9, Rule IV, Book III, paid leaves under the Labor Code.
IRR Labor Code)
(Art. 96)
rule on 2 regular holidays falling on the same Service Charge
day
• If employee did not work: 200% of basic Service charges are distributed in accordance
pay; with the following percentage of sharing:
• If employee worked: 300% of basic pay. • eighty-five percent (85%) for the
employees to be distributed equally among
(Art. 95) them; and
Right to Service Incentive Leave • fifteen percent (15%) for the management
to answer for losses and breakages and
purpose of the law: distribution to managerial employees.
afford a laborer a chance to get a much needed
rest to replenish his worn out energies and acquire The shares shall be distributed to employees not
a new vitality to enable him to efficiently perform less often than once every 2 weeks or twice a
his duties, and not merely to give him additional month at intervals not exceeding 16 days.
salary or bounty.
TITLE II
If the employee unused the 5-days service leave WAGES
incentive, this benefit is convertible to cash
equivalent based on the salary rate at the date of Chapter 1
commutation. PRELIMINARY MATTERS
Chapter III
the minimum wage fixed by law is mandatory; thus PAYMENT OF WAGES
it is non-waivable and non-negotiable.
(Art. 102)
Wage order Forms of Payment
• Order promulgated by the Regional
Tripartite Wages and Productivity Board Under Art. 1705 of the Civil Code, it is mandated
(RTWPB) pursuant to its wage fixing that the laborer’s wages shall be paid in legal
authority. currency. Under the Labor Code and its
implementing rules, as a general rule, wages shall
Wage distortion be paid in legal tender and the use of tokens,
• a situation where an increase in prescribed promissory notes, vouchers, coupons or any other
wage rates results in the elimination or form alleged to represent legal tender is prohibited
severe contraction of intentional even when expressly requested by the employee.
quantitative differences in wage or salary
rates between and among employee Exceptions :
groups in an establishment as to effectively A. Payment through automated teller machine
obliterate the distinctions embodied in such (ATM) of banks provided the following conditions
wage structure based on skills, length of are met:
service, or other logical bases of 1. the ATM system of payment is with the
differentiation written consent of the employees concerned;
2. The employees are given reasonable time
(Art. 100) to withdraw their wages from the bank
Prohibition Against Elimination or facility which time, if done during working
Diminution of Benefits hours, shall be considered compensable
hours worked;
The principle of non-elimination or non-diminution 3. The system shall allow workers to receive
of benefits mandates that the reduction or their wages within the period or frequency
diminution or withdrawal by employers of any and in the amount prescribed under the
benefits, supplements or payments as provided in Labor Code, as amended;
existing laws, individual agreements or collective 4. There is a bank or ATM facility within a
bargaining agreements between workers and radius of one (1) kilometer to the place of
employers or voluntary employer practice or policy, work;
is not allowed. 5. Upon request of the concerned employee/
s, the employer shall issue a record of
(Art. 101) payment of wages, benefits and deductions
Payment by Results for a particular period;
6. There shall be n additional expenses and
the purpose of the law is to insure the payment of no diminution of benefits and privileges as a
fair and reasonable wage rate to worker paid by result of the ATM system of payment;
result who should be protected form unjust and 7. The employer shall assume
unfair employers. responsibility in case the wage protection
provisions of law and regulations are not
Wage rates of employees paid by result may be complied with under the arrangement.
determined through the use of time and motion (Explanatory Bulletin issued by DOLE
studies or consultation with representatives of Secretary Leonardo Quisumbing dated
employer's and worker's organization. November 25, 1996).
and other factors should also concur). writing by the employee to pay his wages to
a member of his family;
Penalty: Arresto mayor or a fine ranging from 200 b. Where payment to another person of any
to 500 pesos (Art. 288, RPC) part of the employee’s wages is authorized
by existing law, including payments for the
(Art. 103) insurance premiums of the employee and
Time of Payment union dues where the right to check-off has
been recognized by the employer in
General rule: wages shall be paid not less often accordance with a collective agreement or
than once every two (2) weeks or twice a month at authorized in writing by the individual
intervals not exceeding sixteen (16) days. No employees concerned; or
employer shall make payment with less frequency c. In case of death of the employee, in
than once a month. which case, the same shall be paid to his
Exception: when payment cannot be made with heirs without necessity of intestate
such regularity due to force majeure or proceedings.
circumstances beyond the employer’s control, in
which case, the employer shall pay the wages (Art. 106)
immediately after such force majeure or Contractor or Subcontractor
circumstances have ceased.
Contracting or subcontracting - It refers to an
(Art. 104) arrangement whereby a principal agrees to put out
Place of Payment or farm out with a contractor or subcontractor the
performance or completion of a specific job, work
General rule: the place of payment shall be at or or service within a definite or predetermined
near the place of undertaking. period, regardless of whether such job, work or
Exceptions: service is to be performed or completed within or
• When payment cannot be effected at or outside the premises of the principal.
near the place of work by reason of the
deterioration of peace and order Labor-only contracting
conditions, or by reason of actual or • the contractor supplying workers to an
impending emergencies caused by fire, employer
flood, epidemic or other calamity rendering ◦ does not have substantial capital or
payment thereat impossible; investment to actually perform the job,
• When the employer provides free work or service under its own account
transportation to the employees back and and responsibility
forth; and ◦ the workers recruited, supplied, and
• Under any other analogous circumstances, placed by such contractors are
provided that the time spent by the performing activities which are directly
employees in collecting their wages shall related to the principal business of the
be considered as compensable hours employer.
worked. • The third person or the intermediary is
considered merely an agent of the
(Art. 105) employer.
Direct Payment of Wages • The employer is made responsible to the
employees of the “labor-only” contractor as
General rule: payment of wages shall be made if such employee had been directly
directly to the employee entitled thereto and to employed by the employer.
nobody else. • The law holds both the employer and the
Exceptions. “labor-only” contractor responsible to the
a. Where the employer is authorized in latter's employees for the more effective
safeguarding of the employee's right under • refers only to one who is not a direct
the Labor Code (Ecal vs NLRC) employer under Art. 106
be made
the evil sought to be prevented is to forestall the • the amount of the deduction is fair and
commission of unwarranted practices of employers reasonable and should not exceed the
by making unnecessary deductions without actual loss or damage
employee's knowledge or authorization. • the deduction should not exceed 20% of
the employee's wage in a week.
Wage deductions allowed:
• when they are authorized by law (Art. 116)
◦ insurance premiums Withholding of Wages and Kickbacks
◦ union dues
◦ facilities supplied withholding of wages and kickbacks are unlawful
◦ loss or damage to tools, materials, acts, be they direct or indirect, by means of force,
equipment supplied by the employer in stealth, intimidation, threat, or dismissal, or by any
a trade, occupation or business means whatsoever without the worker's consent.
◦ taxes withheld pursuant to NIRC
◦ SSS, Philhealth, and Pagibig premiums Kickback – compulsory withholding of a portion of
an employee's wages by the employer or his agent
◦ employee's compensation premiums
as a condition to maintain employment or as a
◦ demandable debt due
bribe for obtaining job.
◦ deductions made in case of judgment
• when they are with the written authorization Authorized withholding of wage:
of the employees for payment to a 3rd • debt that is due and demandable
person • execution or attachment for debts incurred
• when they are made pursuant to the order for food, shelter, clothing, medical
of the court (order of garnishment) attendance
• when deductions, as agency fees, are
made against the salary wage of a non- (Art. 117)
member of the union; provided he accepts Deduction to Ensure Employment
the benefits of the CBA
• when deductions are made for habitual this is also a form of kickback
tardiness or absence as a form of
disciplinary measures (docking) This is punishable under Art. 288 of the Labor
Code which can subject the employer to criminal
check-off liabilities
• system by which union dues and other
assessments are deducted from the (Art. 118)
employee's wage by the employer upon Retaliatory Measures
authorization from the worker or by
mandate of law. unlawful retaliatory acts include:
• Valid only as the employees remain • refusal to pay or reduction of wages and
members of the union concerned benefits due
• illegal dismissal
(Art. 114-115) • discriminating an employee
Deposits for Loss or Damages/Limitations
these can be treated as unfair labor practice under
Requisites: Art. 248 of the Labor Code.
• employee concern is clearly shown to be
responsible for the loss or damage Penalty: see Art. 288 of the Labor Code
• employee is given reasonable opportunity (Art. 119)
to show cause why deduction should not False Reporting
the Board is a tripartite body composed of Wage order issued by the Regional Wage Board
members from without the required public hearing or consultation,
• government and without publication in newspapers of general
• labor circulation should be struck down for violation of
• management Art, 123, LC. (Cagayan Milling Co vs Sec, of
Labor)
the wage board system is a keystone to collective
bargaining. see RA 6727
punishment for non-compliance: fine of 25k – 100k
(Art. 123) or imprisonment of 2-4 years, or both
Wage Order
perosns convicted under RA 6727 are not entitled
Within 30 days after conclusion of the last hearing, to the benefits of the Probation Law.
the Board shall decide on the merits of the petition,
and when appropriate, issue a wage order Double indemnity
establishing the minimum wage rates to be paid by • payment to a concerned employee of the
employers in the region. prescribed increase or adjustment in the
wage rate which was not paid by an service, or other logical bases of
employer in an amount equivalent to twice differentiation.
the unpaid benefits owing to such • Increase in the compensation of the lower
employee. pay class without a corresponding raise for
• Computation starts from the effectivity of high-level employees
the prescribed increases or adjustments as • elements:
indicated in the wage order ◦ existing hierarchy of positions with
corresponding salary rates
(Art. 124) ◦ significant change or increase in the
Standards/Criteria for Minimum Wage Fixing salary rate of a lower pay class without
a corresponding increase in the salary
considerations: of a higher one
• The demand for living wages; ◦ elimination of the distinction between
• Wage adjustment vis-a-vis the consumer the 2 groups or classes
price index; ◦ distortion exists in the same region of
• The cost of living and changes or increases the country.
therein; • Causes of wage distortion:
• The needs of workers and their families; ◦ government decreed increase
• The need to induce industries to invest in ◦ merger of 2 companies
the countryside; ◦ effectivity dates of wage increases
• Improvements in standards of living; given to each of the 2 classes of
• The prevailing wage levels; employees had not been synchronized
• Fair return of the capital invested and in their respective CBAs
capacity to pay of employers; • settlement of wage distortion
• Effects in employment generation and ◦ unionized establishments
family income; and ▪ negotiate to correct the distortions
• The equitable distribution of income and using the grievance machinery n
wealth along the imperatives of economic the CBA
and social development. ◦ non-unionized establishments
▪ NCMB; or
Disputes on wage distortions shall be referred to ▪ NLRC
the NCMB which shall decide on it within 10 days
• formula for distortion adjustment
from the time said dispute has been referred to
◦ minimum wage/actual salary - % x
voluntary arbitration
prescribed increase = distortion
adjustment
if it remains unresolved, the matter shall be
referred to the NLRC which shall decide on it within • any issue involving wage distortion shall
20 days from the day the case has been referred to not be a ground for a strike or lockout
compulsory arbitration.
(Art. 125)
wage distortion Freedom to Bargain
when an employee may be paid a higher minimum
• a situation where an increase in prescribed
wage:
wage rates results in the elimination or
severe contraction of intentional • CBA
quantitative differences in wage or salary • voluntary or compulsory arbitration award
rates between and among employee • assumption of jurisdiction award
groups in an establishment as to effectively • company policy or practice
obliterate the distinctions embodied in such • productivity incentives
wage structure based on skills, length of
which said employee would otherwise have (d) Where the woman employee holds a
been entitled to, and the SSS shall in turn responsible position of managerial or
pay such amount to the employee technical nature, or where the woman
concerned.” employee has been engaged to provide
health and welfare services;
Qualifications for entitlement to maternity (e) Where the nature of the work requires
benefit: the manual skill and dexterity of women
• female member should be employed at the workers and the same cannot be performed
time of delivery, miscarriage, or abortion with equal efficiency by male workers;
• she must have given the required (f) Where the women employees are
notification to the SSS through her immediate members of the family operating
employer the establishment or undertaking; and
• her employer must have paid at least 3 (g) Under other analogous cases exempted
months of maternity contributions within by the Secretary of Labor and Employment
12month period immediately before the in appropriate regulations.
semester of contingency
required facilities for women
any pregnant woman whether married or Employers are required to:
unmarried is entitled to maternity leave (a) Provide seats proper for women and
permit them to use such seats when they
maternity benefit not included in the 13th month pay are free from work and during working
hours, provided they can perform their duties
Prohibition against nightwork: in this position without detriment to
General rule: Regardless of age, no woman shall efficiency;
be employed or permitted or suffered to work, with (b) To establish separate toilet rooms and
or without compensation: lavatories for men and women and provide
(a) In any industrial undertaking or branch at least a dressing room for women;
thereof between 10:00 o’clock at night and 6 (c) To establish a nursery in a workplace for
o’clock in the morning of the following day; the benefit of the women employees therein;
(b) In any commercial or non-industrial and
undertaking or branch thereof, other than (d) To determine appropriate minimum age
agricultural, between midnight and 6 o’clock and other standards for retirement or
in the morning of the following day; or termination in special occupations such as
(c) In any agricultural undertaking at those of flight attendants and the like.
nighttime unless she is given a period of rest (Art. 134-Art. 135)
of not less than nine (9) consecutive hours.
Exceptions:The nightwork prohibition shall not acts of discrimination under Art. 135:
apply in any of the following cases: • discrimination in pay: Payment of a lesser
(a) In cases of actual or impending compensation, including wage, salary or
emergencies caused by serious accident, other form of remuneration and fringe
fire, flood, typhoon, earthquake, epidemic or benefits, to a female employee as against
other disasters or calamity, to prevent loss of a male employee, for work of equal value;
life or property, or in cases of force majeure and
or imminent danger to public safety; • discrimination in employment opportunity:
(b) In case of urgent work to be performed Favoring a male employee over a female
on machineries, equipment or installation, to employee with respect to promotion,
avoid serious loss which the employer would training opportunities, study and
otherwise suffer; scholarship grant solely on account of their
(c) Where the work is necessary to prevent sexes.
serious loss of perishable goods; • Discrimination in hiring: favoring a male