PRELIMINARY TITLE

Art. 1 Name of decree. This decree shall be known as the Labor Code of the Philippines.
Art. 2 Date of effectivity. This code shall take effect 6 months after its promulgation.
LABOR LEGISLATIONS: DEFINITIONS
Labor legislation that w/c consists of statutes, regulations, & jurisprudence governing the relations
between capital and labor by providing for certain employment standards and a legal framework for
negotiating, adjucting, & administering those standards & other incidents of employment.
o

Divided into:
Labor standards (book I-IV)
that w/c provides the least terms & conditions of employment that employers must comply
with and to w/c employees are entitled as a matter of legal right
Minimum requirement prescribed by existing laws, rules& regulations relating to wages,
hours of work, COLA, & other monetary & welfare benefits, including occupational, safety &
health standards
Labor relations (book V-VI)
Defines the status, rights and duties and the institutional mechanisms that govern the
individual & collective interactions of employers. Employees or their representatives

Labor- physical toil (it does not necessarily exclude the application of skill, thus there is skilled &
unskilled labor)
Skill- the familiar knowledge of any art or science, united w/ readiness & dexterity in execution or
performance or in the application of the art or science to practical purposes
Work- covers all forms of physical or mental exertion, or both combined, for the attainment of some
object other than recreation or amusement per se
Worker- the term is broader than employee & may refer to self-employed people & those working in
the service & under the control of another, regardless of rank, title, or nature of work
Employee- a salaried person working for another who controls or supervises the means, manner or
method of doing the work
LABOR LAW & SOCIAL LEGISLATION
Social legislation- laws that provide particular kinds of protection or benefits to society or segments
thereof in furtherance of social justice. Labor laws are necessarily social legislations, but not all social
legislations are labor laws
SOCIAL JUSTICE AS THE AIM

- neither communism, nor despotism, nor atomism, nor anarchy but the humanization of laws and the
equalization of social & economic forces by the State so that justice in its rational & objectively secular
conception may at least be approximated.
- the promotion of the welfare of all the people, the adoption by the government of measures
calculated to insure economic stability of all the component elements of society through maintenance of
proper economic & social equilibrium in the interrelations of the members of the community,
constitutionally, through the adoption of measures legally justifiable, or extra-constitutionally, through
the exercise of powers underlying the existence of all governments, on the time-honored principle of
salus populi est suprema lex.
-in essence both:
juridical principle- prescribes equality of people before the law, &
societal goal- attainment of decent quality of life of the masses through humane productive
efforts
CONSTITUTIONAL RIGHTS & MANDATES
Art II sec Section 18. The State affirms labor as a primary social economic force. It shall protect the rights
of workers and promote their welfare
Guaranteed basic rights of workers:
1. to organize themselves;
2. to conduct collective bargaining/negotiation w/ management;
3. to engage in peaceful concerted activities, including to strike in accordance w/ law;
4. to enjoy security of tenure;
5. to work under humane conditions;
6. to receive a living wage; and
7. to participate in policy & decision-making processes affecting rights & benefits as may be provided by
law

Other Consti provisions that protect the Rights(R)/promote the welfare of workers
1. R to form unions, assocs or societies for purposes not contrary to law
2. R of self-org even for govt employee. No officer/employee of the Civil Service shall be
removed/suspended for cause. Temporary employees of the Govt shall be given such protection
as may be provided by law

3. Regular farmworkers shall have the R to own directly/collectively the lands they till. Landless
farmworkers may be resettled by the govt in its own agricultural estates.
4. Continuing program of urban land reform & housing
5. Protection for working women taking into acct their maternal functions, etc
6. Labor sector is entitled to seats to party list
7. Goals of national economy are a more equitable distribution of opportunities, income & wealth.
8. Creation of an agency to promote the viability & growth of cooperatives as instruments for
social justice & economic devt
9. Govt shall increase the salary scales of the other officials & employees
10. Career civil service employees shall be entitled to separation pay & retirement benefits, OR may
be considered for reemployment in the govt

BALANCING OF RIGHTS IN PRIVATE ENTERPRISE SYSTEM

PRIVATE ENTERPRISE- an economic system under which property of all kinds can be privately owned and
in w/c individuals alone or in association with another, can embark on a business activity. (includes
industrial, agricultural, or agro-industrial establishments engaged in the production, manufacturing,
processing, repacking or assembly of goods including services-oriented enterprises)
Constitution is pro-labor, but recognizes the indispensable role of the private sector, encourages private
enterprise and provides incentives to needed investments
POLICE POWER AS THE BASIS/FOUNDATION
- the power of the govt to enact laws, w/in Constitutional limits to promote the order, safety, health,
morals & general welfare of society
- power inherent in govt to protect itself & all its constituents, & for this purpose to hold the govt
immune so far as necessary, from any limitations imposed in the past.
- An imposition of restraint upon liberty or property in order to foster the common good.
- every person has a right to pursue a business, occupation, or profession subject to the paramount right
of the government to impose such restrictions and regulations as the protection of the public ma
require
BIRTH OF THE LC
Blas Ople - father of the LC
LC designed to be a dynamic & growing body of laws w/c will reflect continually the lessons of practical
application & experience

7 PRINCIPLES UNDERLYING THE CODE

1. Labor relations must be made both responsive & responsible to national devt
2. Labor laws/labor relations during a period of national emergency must substitute rationality for
confrontation; strikes or lockouts give way to a rational process w/c is arbitration
3. Laggard justice in the labor field is injurious to the workers, the employers & the public; labor justice
can be made expeditious w/o sacrificing due process.
4. Manpower devt & employment must be regarded as a major dimension of labor policy, for there can
be no real equality of bargaining power under conditions of severe mass unemployment.
5. There is a global labor market available to qualified Filipinos, esp those who are unemployed or
whose employment is tantamount to unemployment because of their very little earnings.
6. Labor laws must command adequate resources & acquire a capable machinery for effective &
sustained implementation; when labor laws cannot be enforced, both employers & the workers are
penalized, & only a corrupt few (those who are in charge of implementation) may get the reward they
dont deserve.
7. There should be popular participation in national policy-making through what is now called tripartism.
SOME LABOR LAWS BEFORE THE PASSAGE OF THE CODE
1.
2.
3.
4.
5.
6.
7.

Act #1874: Employers Liability Act,

Act #2549: prohibited payment of wages in non-cash form
Act #2071: prohibiting slavery/involuntary servitude
RA #1054: requiring emergency medical treatment for employees
CA # 444: 8-hr labor law
CA #103 created the Court of Industrial Relations (CIR)
Pd #21 created the NLRC ( to investigate, decide & settle all disputes bet employers &
employees
8. RA # 875: The Indu

forbids commercial, industrial or agricultural enterprises to open on any Sunday, Xmas Day, New
Years Day, Holy Thurs & Good Friday.
9. RA #1787: The Termination Pay Law enumerated the just causes for terminating an
employment w/o a definite period and allowed employers to separate an employee by serving a
15-day notice per yr of service or, by paying an equivalent separation pay.
Significance of Other Laws
1. Foreign Decisions numerous LC provisions are substantially similar to the Industrial Peace Act
2. The Civil Code describes the nature of labor mgt relations: The relations bet capital & labor are
not merely contractual. They are so impressed w/ public interest that labor contracts must yield to the

common good. such contracts are subj. to the special laws on labor unions, collective bargaining, strikes
& lockouts, closed shop, wages, working conditions, hrs of labor & similar subjs. Art 1700
Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience
of the public Art 1701.
3. RPC punishes the use of violence or threats by either (employer) EER or (employee)EE.
4. Special Laws (SSS law, GSIS law, Agrarian Reform law, the 13th month pay law, the Magna Carta for
Public Health Workers)
INTERNATIONAL ASPECT
On June 15, 1948, the Philippines became a member of the International Labor Organization (ILO),
which is the UN specialized agency which seeks the promotion of social justice and internationally
recognized human and labor rights.
The ILO formulates international labor standards in the form of Conventions and Recommendations
setting minimum standards of basic labor rights.
An essential characteristic of ILO is tripartism, that is, it is composed not only of government
representatives but also of employers and workers organizations.
International Commitments
By being an ILO member, the country thereby subscribes to the fundamental principles on which the
ILO is based. Also, as an ILO member, the Philippines imbibes the obligation of the ILO to further
programs that will achieve ILO objectives.
ILO Core Conventions
Forced Labor Convention (1930);
Freedom of Association and Protection of the Right to
Organize Convention (1948);
Freedom to Organize and Collective Bargaining Convention (1949);
equal remuneration Convention (1951);
Abolition of Forced Labor Convention (1957);
Discrimination (Employment and Occupation) Convention (1958);
Minimum Age Convention (1973); and
Worst Forms of Child Labor Convention (1999).
Ratification Generally Needed; Exception
As a rule ILO conventions are binding only for those In 1999, the ILO adopted a Declaration on
Fundamental Principles and Right at Work concerning an obligation of all ILO members to respect and
promote the fundamental rights even if they have not ratified the conventions.
Ratified ILO Conventions

core conventions on freedom of association, on abolition of forced labor, on abolition of child labor,
and on nondiscrimination.
25% of the ILO members on the basis of efforts taken to approximate labor standards.

Art 3. [Declaration of Basic Policy] The State shall:

afford protection to labor,
promote full (employment) EENT,
ensure equal work opportunities regardless of sex, race or creed, and
regulate the relations bet workers & EERS.
The State shall assure the rights of workers to:
self-org,
collective bargaining,
security of tenure, and
just & humane conditions of work.
* The basic policy is to balance or to coordinate the rights & interests of both workers & employers. Art
3 recognizes shared responsibility of employers & workers and the right of enterprise to reasonable
returns on investment & to expansion & growth
Art4. [Construction in Favor of Labor] All doubts in the implementation & interpretation of the
provisions of this Code, including its IRRs, shall be resolved in favor of labor.
INTERPRETATION & CONSTRUCTION
- policy is to extend the decrees applicability to a greater number of employees to enable them to avail
of the benefits under the law (Liberal approach is adopted)
- Concern for the Lowly Worker SC reaffirms its concern for the lowly worker who, often at his EERs
mercy, must look up to the law for his protection.
- Reason: the EER stands on higher footing than the EE:
(1) There is greater supply than demand for labor;
(2) the need for EENT by labor comes from vital & even desperate necessity.
- This provision merely raises an employee to an equal footing in bargaining relations w/ capital & to
shield him from abuses brought about by the necessity for survival
- cannot be used for miscarriage of jutice

MGT RIGHTS
entitled to respect & enforcement in the interest of simple fair play.
1. R to manage, control, and use his property & conduct business in a manner satisfactory to himself
(just discrimination in the rate of wages paid to the skillful & to the unskillful, to the efficient &
inefficient.)
2. R to prescribe rules (they become part of the contract of EENT)
3. R to select EES & to decide when to engage them, except as restricted by statute or valid contract, at
a wage & under conditions agreeable to them.
4. R to transfer & discharge EES in order to minimize expenses & to insure stability of the business &
even to close the business, provided it is done in good faith & due to causes beyond control.
Art 5. [Rules & Regulations] the DOLE & other govt agencies charged w/ the administration &
enforcement of this Code or any of its parts shall promulgate the necessary IRRs. Such RRs shall become
effective 15 days after announcement of their adoption in the newspapers of gen. circulation.
- Only considered as invalid when promulgated by an administrative body to implement a law when
made in excess of its rulemaking authority
Art 6. [Applicability] All Rs & benefits granted to workers under this Code shall, except as may otherwise
be provided herein, apply alike to all workers, whether agricultural or non-agricultural - also applies to a
govt corp incorporated under the Corporation Code.
- Test WON a govt-owned/-controlled corp is subj to Civil Service Law or the manner of its creation.
- Govt corps created by congress (w/special charter) are subj to the civil service Law; those incorporated
under the general Corp Law are covered by the Labor code.
PNOC-EDC (phil National oil corp- energy development corp) incorporated under the Corp Law
subj to Labor Code
NHA incorp under Act 1459, the former corp law - LC
Govt agencies Ees covered by CS Law
-may apply even if parties are not employers and employees of each other. Employment relationship is
not a pre-condition to LCs applicability

BOOK I: PRE-EMPLOYMENT
ART. 12. Statement of objectives. - It is the policy of the State:

a) To promote and maintain a state of full employment through improved manpower training,
allocation and utilization;
b) To protect every citizen desiring to work locally or overseas by securing for him the best possible
terms and conditions of employment;
c) To facilitate a free choice of available employment by persons seeking work in conformity with
the national interest;
d) To facilitate and regulate the movement of workers in conformity with the national interest;
e) To regulate the employment of aliens, including the establishment of a registration and/or work
permit system;
f) To strengthen the network of public employment offices and rationalize the participation of the
private sector in the recruitment and placement of workers, locally and overseas, to serve national
development objectives;
g) To insure careful selection of Filipino workers for overseas employment in order to protect the
good name of the Philippines abroad.
The DOLE
- by Administrative Code of 1987 (EO 292)
- the primary policy-making, programming, coordinating and administrative entity of the Executive
branch of the govt in the field of labor and employment
Its Primary responsibilities:
1. The promotion of gainful EENT opportunities and the optimization of the devt & utilization of the
countrys manpower resources;
2. The advancement of workers welfare by providing for just and humane working conditions and terms
of EENT;
3. The maintenance of industrial peace by promoting harmonious, equitable and stable EENT, relations
that assure protection for the Rs of all concerned parties.

Title I: RECRUITMENT AND PLACEMENT OF WORKERS

Chapter I: GENERAL PROVISIONS

ART. 13. Definitions.

(a) "Worker" means any member of the labor force, whether employed or unemployed.
(b) "Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or not: Provided, That 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.
(c) "Private fee-charging employment agency" means any person or entity engaged in recruitment
and placement of workers for a fee which is charged, directly or indirectly, from the workers or
employers or both.
(d) "License" means a document issued by the Department ofLabor authorizing a person or entity to
operate a private employment agency.
(e) "Private recruitment entity" means any person or association engaged in the recruitment and
placement of workers, locally or overseas, without charging, directly or indirectly, any fee from the
workers or employers.
(f) "Authority" means a document issued by the Department ofLabor authorizing a person or
association to engage in recruitment and placement activities as a private recruitment entity.
(g) "Seaman" means any person employed in a vessel engaged in maritime navigation.
(h) "Overseas employment" means employment of a worker outside the Philippines.
(i) "Emigrant" means any person, worker or otherwise, whoemigrates to a foreign country by virtue
of an immigrant visa or resident permit or its equivalent in the country of destination.
WHAT CONSTITUTES RECRUITMENT AND PLACEMENT
The number of persons is not an essential ingredient of the act of recruitment and placement of
workers.
Any of the acts mentioned in the basic rule in Article 13 (b) will constitute recruitment and placement
even if only one prospective worker is involved. (People vs. Panis)
It must be shown that the accused gave the complainant the distinct impression that she had the power
or the ability to send the complainant abroad for work, such that the latter was convinced to part with
her money to be so employed. Where such an act or representation is not proven, there is not
recruitment activity and conviction for illegal recruitment has no basis. (People vs. Goce)
By themselves, procuring a passport, airline tickets and foreign visa for another individual, without
more, can hardly qualify as recruitment activities. (Darvin vs. CA)

ART. 14. Employment promotion. The Secretary of Labor shall have the power and authority:
(a) To organize and establish new employment offices in addition to the existing employment offices
under the Department of Labor as the need arises;
(b) To organize and establish a nationwide job clearance and information system to inform
applicants registering with a particular employment office of job opportunities in other parts of the
country as well as job opportunities abroad;
(c) To develop and organize a program that will facilitate occupational, industrial and geographical
mobility of labor and provide assistance in the relocation of workers from one area to another; and
(d) To require any person, establishment, organization or institution to submit such employment
information as may be prescribed by the Secretary of Labor.

ART. 15. Bureau of Employment Services. - (a) The Bureau of Employment Services shall be primarily
responsible for developing and monitoring a comprehensive employment program. It shall have the
power and duty:
1. To formulate and develop plans and programs to implement the employment promotion
objectives of this Title;
2. To establish and maintain a registration and/or licensing system to regulate private sector
participation in the recruitment and placement of workers, locally and overseas, and to secure the
best possible terms and conditions of employment for Filipino contract workers and compliance
therewith under such rules and regulations as may be issued by the Minister of Labor;
3. To formulate and develop employment programs designed to benefit disadvantaged groups and
communities;
4. To establish and maintain a registration and/or work permit system to regulate the employment
of aliens;
5. To develop a labor market information system in aid of proper manpower and development
planning;
6. To develop a responsive vocational guidance and testing system in aid of proper human resources
allocation; and
7. To maintain a central registry of skills, except seamen.
LOCAL EMPLOYMENT
The Bureau of Employment Services has been replaced by the Bureau of Local Employment (BLE)
through EO 797 (May 1, 1982)

PRPA (private recruitment & placement agency) agency that recruits applicants for local employment
- any individual, partnership, corporation or entity engaged in the recruitment & placement of persons
for local employment
- secures license from DOLE regional office, not transferrable, valid for 2 years & renewable. Requires
security bonds & cash bonds valid for 2 years, w/c answers for all valid legal claims arising from the
illegal use of the license & serves as a guarantee of compliance with the provision of labor code
Service fee chargeable to employer
Shall not exceed 20% of the annual salary of the worker. Cannot be deducted from workers salary.
Transportation expenses cannot, likewise, be deducted.
The PESO
Intended to serve as employment service and information center in its area of operation. It regularly
obtains a list of job vacancies from employers, publicizes them, invites and evaluates applicants, and
refers them for probable hiring.
- Also holds special services for the public such as employment bazaars, etc.
- primarily responsible for developing & monitoring a comprehensive EENT program.

The decisions of the NLRC shall be final & unappealable.

Minister of Labor has the power to impose & collect fees, based on rates recommended by the BES.
Such fees shall be deposited in the National Treasury as a special acct of the General Fund, for the
promotion of the objectives of the BES, subj to the provisions of Sec 40 of PD 1177.
replaced BES w/ BLE, and created POEA
made licensing of local recruitment agencies and the issuance of work permits to nonresident aliens and EENT registration certificates to resident aliens a function of the regional offices of
DOLE
required the establishment of a Public Employment Service Office (PESO) in capital towns,
cities and other strategic areas
o PESO - serves as EENT service & information center
- Regularly obtains lists of job vacancies from EERS, publicizes them, invites and evaluates
applicants, and refers them for probable hiring
- Provides training and educational guidance and EENT counseling services

- Also renders special services to the public such as holding of jobfairs, livelihood and selfemployment bazaars
- Special credit assistance for placed overseas workers- Special program for EENT of students (SPES)
during summer or semestral breaks
- Work appreciation seminars & conferences and
- Hiring of workers in infrastructure projects (WHIP)
Ra 6885 created WHIP, a program w/c requires the DPWH and private contractors to hire 30% of
skilled and 50% unskilled labor requirements from the area where the project is being undertaken

ART. 16. Private recruitment. - Except as provided in Chapter II of this Title, no person or entity other
than the public employment offices, shall engage in the recruitment and placement of workers.
GR: No person/entity other than the public EENT offices, shall engage in the recruitment & placement of
workers.
eptions
1. Public EEnt offices
2. Private recruitment entities
3. Private EENT agencies
4. Shipping or manning agents or representatives
5. The POEA
6. Construction contractors if authorized to operate by DOLE and the Construction Industry Authority
7. Members of the diplomatic corps although hirings done by them have to be processed through the
POEA
8. Other persons/entities as may be authorized by the Sec of DOLE

ART. 17. Overseas Employment Development Board. - An Overseas Employment Development Board is
hereby created to undertake, in cooperation with relevant entities and agencies, a systematic program
for overseas employment of Filipino workers in excess of domestic needs and to protect their rights to
fair and equitable employment practices. It shall have the power and duty:
1. To promote the overseas employment of Filipino workers through a comprehensive market
promotion and development program;

2. To secure the best possible terms and conditions of employment of Filipino contract workers on a
government-to-government basis and to ensure compliance therewith;
3. To recruit and place workers for overseas employment on a government-to-government
arrangement and in such other sectors as policy may dictate; and
4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund for Overseas
Workers.
LEGISLATIVE BACKGROUND OF OVERSEAS EMPLOYMENT

industry.

workers.
ations in the overseas employment program.

OVERSEAS EMPLOYMENT POLICY

R.A. No. 8042
ain economic growth and
achieve national development.

fundamental human rights and freedoms of the Filipino citizen shall not, at any time, be compromised
or violated.
Selective Deployment

countries that meet some criteria:

o It has existing labor and social laws protecting the rights of migrant workers;
o It is a signatory to multilateral conventions, declarations or resolutions relating to the protection of
migrant workers;
o It has concluded a bilateral agreement or arrangement with the government protecting the rights of
Filipino migrant workers;

o It is taking positive, concrete measures to protect the rights of migrant workers.

requires, may, at any time, terminate or impose a ban on the deployment of migrant workers.
THE POEA: OVERVIEW OF ITS FUNCTIONS AND POWERS

the overseas employment of the Filipino workers and the protection of their rights to fair and equitable
employment practices.

or has been engaged in a remunerated activity in a country of which he/she is not a legal resident.
-based or sea-based.
REGULATORY FUNCTION OF POEA

through its licensing ad registration system.

ADJUDICATORY FUNCTIONS OF POEA

cases:
a. Recruitment violation and related cases consisting of all preemployment cases which are
administrative in character, involving or arising out of recruitment laws, rules and regulations, including
money claims therefrom or violations of the conditions for issuance of license to recruit workers.
b. Employer-emploee relations cases consisting of all claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino workers in overseas employment.
c. Disciplinary action cases consisting of all complaints against a contract worker for breach of discipline.
Jurisdiction Transferred to NLRC
-employee relations cases.

to hear and decide claims arising out of an employer-employee relationship or by virtue of any law or
contract involving Filipino workers for overseas employment including claims for actual, moral,
exemplary and other forms of damages.
n over money claims of OFWs, it even
expanded the scope of such money claim. When the jurisdiction was still with the POEA, the jurisdiction

covered only money claims involving Filipino workers for overseas employment. Now the NLRC
jurisdiction is over money claims involving Filipino workers for overseas deployment.

departure for abroad.

Jurisdiction Retained With POEA
cide all cases which are administrative in character and disciplinary
action cases.
Compromise Agreement

Mandatory Principle
-compliance with the periods provided for under the law will subject the responsible officials to
penalties such as withholding of salaries until compliance, suspension, or dismissal from service.
EMPLOYER-EMPLOYEE RELATIONS CASES: TERMINATION OF EMPLOYMENT
Contractual Employees
and Lagda vs. NLRC)
Premature Termination of Contract

termination is not shown to be based on lawful or valid grounds, the employer will be ordered to pay
the workers their salaries corresponding to the unexpired portion of their employment contract. (Tierra
Construction vs. NLRC)
Pretermination Under R.A. No. 8042; July 15, 1995 Onward
or after July 15, 1995, the law to
apply is RA 8042.

cause as defined by law or contract, is entitled to a full reimbursement of his placement fee with
interest at 12% per annum, plus his salary for the unexpired portion of his employment contract or for 3
months for every year of the unexpired term, whichever is less.
EMPLOYER-EMPLOYEE RELATIONS CASES: MONEY CLAIMS; EMPLOYERS NATIONALITY IMMATERIAL
utes and regulations do not limit the coverage to non-Filipino employers. Filipinos working
overseas share the same risks and burdens whether their employers be Filipino or foreign.

Death and Other Benefits, Basis of Compensation

for employment for Filipino seamen allows the payment of death benefit
pension, funeral benefit, and burial gratuity for the private respondent.

the safety of the employee during his repatriation and until his arrival in this country, i.e. the point of
hire. (InterOrient Maritime Enterprises vs. NLRC)
Illustrative Case: Death Benefit Under the Standard Contract
efit under the standard contract, it must be sufficiently shown
that the deaths of the seamen were caused by their own willful and deliberate act. In this case, the
evidence does not substantially prove that the seamen contracted tetanus as a result of the unsanitary
surgical procedures they performed on themselves. Hence, the death benefits under the employment
contract must be paid. (NFD International Manning Agents vs. NLRC)
Overseas Compensation Benefits in Dollars
it unlawful to require payment of domestic obligations in foreign
currency, this particular statute is not applicable in the case at bar. The fixing of the award in dollars was
based on the parties employment contract, stipulating that wages and benefits in dollars, since private
respondent was engaged as an overseas seaman on board petitioners foreign vessel. (Philippine
International Shipping Corp. vs. NLRC)
DISCIPLINARY ACTION CASES
worker for breach of discipline. It
shall also establish a system of watching and blacklisting OCWs
Grounds for Disciplinary Action
a. Commission of a felony punishable by Philippine laws or laws of host country;
b. Drug addiction or possession or trafficking of prohibited drugs;
c. Desertion or abandonment;
d. Gambling;
e. Initiating or joining a strike, where prohibited;
f. Creating trouble at the work site;
g. Embezzlement of company funds or other properties;
h. Theft or robbery;

i. Prostitution;
j. Vandalism;
k. Gunrunning or possession of deadly weapons;
l. Unjust refusal to depart for a worksite after all documents have been prepared;
m. Violations of the law and sacred practices of the host country and unjustified breach of the
employment contract.
OUTSIDE POEA JURISDICTION

claim must be brought before the regular courts. This is because the POEA is not a court, it is only an
administrative agency.
No Jurisdiction Over Torts

case at bar, the items demanded are not labor benefits such as wages, overtime pay or separation pay,
but are items claimed as natural consequences of his dismissal (which he denominates as damages.)
POEA has no jurisdiction. (Mckenzie, et al vs Cui)
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for overseas employment except
through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and such other employers as may be allowed by the
Secretary of Labor is exempted from this provision.
GR: Direct hiring of Filipino workers for overseas EENT is not allowed

1. Members of Diplomatic corps;

2. International organizations;
3. Other employers as may be allowed by DOLE; and
4. Name hires individual workers who are able to secure contracts for overseas EENT on their own
efforts and representations w/o assistance/participation of any agency. Their hiring nonetheless, shall
pass through the POEA for processing purposes. Name hires should submit to POEA for registration:
- employment contract
- valid passport
- employment visa or work permit, or equivalent document

- certificate of medical fitness

- certificate of attendance to the required employment orientation/briefing

Rationale of the Prohibition

1. To assure the best possible terms & conditions of work to the EE; and
2. To assure the foreign EER that he hires only qualified Filipino worker

ART. 19. Office of Emigrant Affairs. - (a) Pursuant to the national policy to maintain close ties with
Filipino migrant communities and promote their welfare as well as establish a data bank in aid of
national manpower policy formulation, an Office of Emigrant Affairs is hereby created in the
Department of Labor. The Office shall be a unit at the Office of the Secretary and shall initially be
manned and operated by such personnel and through such funding as are available within the
Department and its attached agencies. Thereafter, its appropriation shall be made part of the
regular General Appropriations Decree.
(b) The office shall, among others, promote the well-being of emigrants and maintain their close link
to the homeland by:
1) serving as a liaison with migrant communities;
2) provision of welfare and cultural services;
3) promote and facilitate re-integration of migrants into the national mainstream;
4) promote economic; political and cultural ties with the communities; and
5) generally to undertake such activities as may be appropriate to enhance such cooperative links.
COMMISSION ON FILIPINO OVERSEAS (CFO) attached to the DFA; replaced the Office of Emigrant
Affairs.
- assists in the formulation of policies affecting Filipinos overseas and formulates an integrated program
that promotes the welfare of Filipinos overseas

ART. 20. National Seamen Board.

(a) A National Seamen Board is hereby created which shall develop and maintain a comprehensive
program for Filipino seamen employed overseas. It shall have the power and duty:
1. To provide free placement services for seamen;

2. To regulate and supervise the activities of agents or representatives of shipping companies in the
hiring of seamen for overseas employment and secure the best possible terms of employment for
contract seamen workers and secure compliance therewith;
3. To maintain a complete registry of all Filipino seamen.
(b) The Board shall have original and exclusive jurisdiction over all matters or cases including money
claims, involving employer-employee relations, arising out of or by virtue of any law or contracts
involving Filipino seamen for overseas employment. The decisions of the Board shall be appealable
to the National Labor Relations Commission upon the same grounds provided in Article 223 hereof.
The decisions of the National Labor Relations Commission shall be final and inappealable.
NSB NOW POEA
red its function to the POEA. But this adjudicatory function of
the POEA has since been moved to the NLRC by RA 8042.
ARTICLE 20 CONSTRUED; SEAMENS EMPLOYMENT CONTRACTS AND THE INTERNATIONAL
TRANSPORT FEDERATION (ITF)
bor: Seamen who were dismissed because they demanded that they
be paid the worldwide rate, instead of the lower Far East rate as provided in their contracts of
employment, did not commit serious misconduct as to warrant their dismissal. They were only
exercising their rights. Hence, dismissal was illegal.

world; otherwise, there would not be so many of them in the vessels sailing in every ocean and sea on
this globe. They are entitled to government protection when they ask for fair and decent treatment by
their employers and when they exercise their right to petition for improved terms of employment,
especially when they feel that these are substandard or are capable of improvement according to
internationally accepted rules. Also, the standard forms embody the basic minimums which must be
incorporated as parts of the employment contract. They are not collective bargaining agreements or
immutable contracts which the parties cannot improve upon or modify in the course of the agreed peril
of time. (Vir-jen Shipping vs. NLRC)
INVALID SIDE AGREEMENT
-approved
contract is void, unless such subsequent agreement is approved by the POEA
DELAY IN FILING CLAIM

particular circumstances. The question of laches is addressed to the sound discretion of the court and

since it is an equitable doctrine, its application is controlled by equitable considerations. It cannot be

worked to defeat justice or perpetrate fraud or injustice.
-year statutory period, recovery therefore cannot be
barred by laches. Courts should never apply the doctrine of laches earlier than the expiration of time
limited for the commencement of actions at law. (Imperial Victory Shipping vs. NLRC)
MINIMUM EMPLOYMENT CONDITIONS
a. Guaranteed wages for regular working hours and overtime pay
b. Free transportation to and from the worksite, or offsetting benefit;
c. Free food and accommodation, or offsetting benefit;
d. Just and authorized causes for termination of contract taking into consideration the customs and
norms of the host country.
FREEDOM TO STIPULATE

these minimum requirements, provided the whole employment package should be more beneficial to
the worker than the minimum, and that the same not be contrary to law, public policy, and morals.
ART. 21. Foreign service role and participation. - To provide ample protection to Filipino workers
abroad, the labor attaches, the labor reporting officers duly designated by the Secretary ofLabor and the
Philippine diplomatic or consular officials concerned shall, even without prior instruction or advice from
the home office, exercise the power and duty:
(a) To provide all Filipino workers within their jurisdiction assistance on all matters arising out of
employment;
(b) To insure that Filipino workers are not exploited or discriminated against;
(c) To verify and certify as requisite to authentication that the terms and conditions of employment
in contracts involving Filipino workers are in accordance with the Labor Code and rules and
regulations of the Overseas Employment Development Board and National Seamen Board;
(d) To make continuing studies or researches and recommendations on the various aspects of the
employment market within their jurisdiction;
(e) To gather and analyze information on the employment situation and its probable trends, and to
make such information available; and
(f) To perform such other duties as may be required of them from time to time.
PROTECTION AND ASSISTANCE BY GOVERNMENT AGENCIES

workers and, as far as practicable, of all overseas Filipinos: DFA,DOLE, POEA, and OWWA.
THE RPM CENTER Re-Placement and Monitoring Center
omotion house for local employment of these returning workers and to tap their skills
for national development.
THE OWWA Overseas Workers Welfare Administration

placement assistance, and remittance services to OFWs.

POEA and BLE.

REPATRIATION OF WORKERS

belongs to the principal or the agency that recruited or deployed the worker.
e fault of the worker, the principal or agency may recover the cost
of repatriation from the worker after return to the country.

advance the repatriation cost with recourse to the agency or principal.

ART. 22. Mandatory remittance of foreign exchange earnings.- It shall be mandatory for all Filipino
workers abroad to remit a portion of their foreign exchange earnings to their families, dependents,
and/or beneficiaries in the country in accordance with rules and regulations prescribed by the
Secretary of Labor.
- All OFWs are required to remit a portion of their foreign exchange earnings ranging from 50% 80% depending on the workers kind of job, to their families, dependents, and/or beneficiaries.
Seamen/Mariners 80%
Workers for Filipino Contractors & Construction companies 70%
Professionals whose EENT contract provide for lodging facilities 70%
Professionals w/o Board & Lodging 50%
Domestic and other service workers 50%

1. Fil servicemen working in US military installations;

2. Where the workers immediate family members, dependents, or beneficiaries are residing w/
him abroad;
3. Immigrants and Fil professionals and EEs working w/ UN agencies or specialized bodies
Effects of Failure to Remit:
1. Workers who fail to comply w/ the mandatory remittance requirement shall be suspended/excluded
from the list of eligible workers for overseas EENT. Subsequent violations shall warrant his repatriation.
2. EERS who fail to comply shall be excluded from the overseas EENT program. Private EENT
agencies/entities shall face cancellation or revocation of their licenses or authority to recruit, w/o
prejudice to other liabilities under existing laws and regulations

ART. 23. Composition of the Boards.

(a) The OEDB shall be composed of the Secretary of Labor and Employment as Chairman, the
Undersecretary of Labor as Vice-Chairman, and a representative each of the Department of Foreign
Affairs, the Department of National Defense, the Central Bank, the Department of Education,
Culture and Sports, the National Manpower and Youth Council, the Bureau of Employment Services,
a workers organization and an employers organization and the Executive Director of the
OEDB as members.
(b) The National Seamen Board shall be composed of the Secretary of Labor and Employment as
Chairman, the Undersecretary of Labor as Vice-Chairman, the Commandant of the Philippine Coast
Guard, and a representative each of the Department of Foreign Affairs, the Department of
Education, Culture and Sports, the Central Bank, the Maritime Industry Authority, the Bureau of
Employment Services, a national shipping association and the Executive Director of the NSB as
members.
The members of the Boards shall receive allowances to be determined by the Board which shall not
be more than P2,000.00 per month.
(c) The Boards shall be attached to the Department of Labor for policy and program coordination.
They shall each be assisted by a Secretariat headed by an Executive Director who shall be a Filipino
citizen with sufficient experience in manpower administration, including overseas employment
activities. The Executive Director shall be appointed by the President of the Philippines upon the
recommendation of the Secretary of Laborand shall receive an annual salary as fixed by law. The
Secretary of Labor shall appoint the other members of the Secretariat.
(d) The Auditor General shall appoint his representative to the Boards to audit their respective
accounts in accordance with auditing laws and pertinent rules and regulations.

ART. 24. Boards to issue rules and collect fees. - The Boards shall issue appropriate rules and regulations
to carry out their functions. They shall have the power to impose and collect fees from employers
concerned, which shall be deposited in the respective accounts of said Boards and be used by them
exclusively to promote their objectives.

Chapter II: REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES

ART. 25. Private sector participation in the recruitment and placement of workers. - Pursuant to
national development objectives and in order to harness and maximize the use of private sector
resources and initiative in the development and implementation of a comprehensive employment
program, the private employment sector shall participate in the recruitment and placement of workers,
locally and overseas, under such guidelines, rules and regulations as may be issued by the Secretary
of Labor.
POEAs retained jurisdiction:
RA 8042 transferred from POEA to NLRC the jurisdiction over OFWs claims rising from employer
employee relationship.
POEA retained original & exclusive jurisdiction over cases involving violations of POEA rules and
regulations, disciplinary cases& other cases that are administrative in character involving OFWs.
performs regulatory, enforcement, & limited or special adjudicatory functions

VALIDITY OF POEA REGULATIONS

, however it could end up being unenforceable
if it shall lack of publication

Private Sectors that can participate

1. Private EENT agencies;
2. Private recruitment agencies;
3. Shipping or manning agencies;
4. Such other persons as may be authorized by the Sec of DOLE; and
5. Construction contractors w/ a duly issued authority to operate private recruitment entities

Qualifications for Participation

1. Citizenship requirement
a. Filipino citizens; or
b. Corporations, partnerships or entities at least 75% of the authorized and voting capital stock of w/c is
owned & controlled by Filipino citizens.
2. Capitalization
a. Private EENT agency for local EENT
i. For single proprietorship or partnership minimum net worth of 200k pesos
ii. For corporations a minimum paid up capital of 5ook pesos
b. Private recruitment or manning agency for overseas EENT
i. For single proprietorship or partnership P2M minimum capital
ii. For corps P2M minimum paid up capital, Provided, that those w/ existing licenses shall, w/in 4
yrs from effectivity hereof, increase their capitalization or paid-up capital, as the case may be, to
P2M at the rate of 250K every yr.
3. Those not otherwise disqualified by law or other govt regulations to engage in the recruitment &
placement of workers for overseas EENT Disqualified from Recruitment & Placement of Workers for
Overseas EEnt whether for profit or not

1. Travel agencies & sales agencies of airline companies;

2. Officers/members of the board of any corp or members in a partnership engaged in the business of a
travel agency;
3. Corps & partnerships, when any of its officers, members of the board or partners, is also an officer,
member of the board or partner of a corp or partnership engaged in the business of a travel agency
(interlocking officers)
4. Persons, partnerships or corps which have derogatory records, such as but not limited to:
a. Those certified to have derogatory record/info by the NBI or by the Anti-illegal Recruitment
Branch of the POEA;
b. Those against whom probable cause or prima facie finding of guilt for illegal recruitment or other
related cases exists;

c. Those convicted of cases and/or crimes involving moral turpitude;

d. Those agencies whose licenses have been previously cancelled or revoked by POEA for violation
of RA 8042, PD 442 as amended and their IRR as well as the Labor Codes IRRe. Officials/EES of the
DOLE or other govt agencies directly involved in overseas EENT program and their relatives w/in the
4th degree of consanguinity or affinity; and
f. Those whose License have been previously cancelled o revoked

ART. 26. Travel agencies prohibited to recruit. - Travel 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.
The POEA rules also disqualify persons with derogatory records such as those convicted for illegal
recruitment or other crimes involving moral turpitude, an official or employee of DOLE, POEA, OWWA,
DFA and other government agencies directly involved in the implementation of RA 8042 or any of their
relatives within the fourth civil degree.
ART. 27. Citizenship requirement. - Only Filipino citizens or corporations, partnerships or entities at least
seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled
by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally
or overseas.
ART. 28. Capitalization. - All applicants for authority to hire or renewal of license to recruit are required
to have such substantial capitalization as determined by the Secretary of Labor.

single proprietorship or partnership and a minimum paid-up capital of the same amount for a
corporation
ART. 29. Non-transferability of license or authority. - No license or authority shall be used directly or
indirectly by any person other than the one in whose favor it was issued or at any place other than that
stated in the license or authority be transferred, conveyed or assigned to any other person or entity. Any
transfer of business address, appointment or designation of any agent or representative including the
establishment of additional offices anywhere shall be subject to the prior approval of the Department
of Labor.
PLACE OF RECRUITMENT

recruitment and placement activities only at their authorized official address.

e lawfully
undertaken on a house-to-house basis, in residences, or secluded places.
1. It may be used only by the one in whose favor it was issued; hence, it cannot be assigned, conveyed
or transferred to any other person/entity.
2. It must be used only in the place stated in the license. Thus, could only undertake recruitment &
placement activities in the region where the license was granted.
3. The recruitment & placement activities must be undertaken at their authorized official addresses.
4. Provincial recruitment and/or job fairs may be allowed only when authorized by POEA in writing.
* Change of ownership of single proprietorship licensed to engage in overseas EENT shall cause the
automatic revocation of the license.

ART. 30. Registration fees. - The Secretary of Labor shall promulgate a schedule of fees for the
registration of all applicants for license or authority.
ART. 31. Bonds. - All applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor to guarantee compliance with prescribed recruitment procedures,
rules and regulations, and terms and conditions of employment as may be appropriate.
Purposes:
1. To guarantee compliance w/ prescribed recruitment procedures, rules & regulations, and terms &
conditions of EENT; and
2. To ensure prompt & effective recourse against such companies when held liable for
applicants/workers claim
Exemption from Garnishment
judgment creditor of
the agency.

by the agency w/in 15 days from notice from the POEA. Failure to replenish the same w/in the said pd
shall cause the suspension of the license
Note: POEA has the power to enforce liability under cash & surety bonds.
ART. 32. Fees to be paid by workers. - Any person applying with a private fee-charging employment
agency for employment assistance shall not be charged any fee until he has obtained employment
through its efforts or has actually commenced employment. Such fee shall be always covered with the

appropriate receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.
The applicant can be charged w/ fees only after he has obtained EENT or has actually commenced
EENT

POEA has the power to:

1. Suspend/cancel the license; and
2. Order the refund/reimbursement of such illegally collected fees
Prohibition on Charging Fees
1. Placement fees cannot be collected from a hired worker until he has signed the EENT contract &
shall be covered by receipts clearly showing the amt paid
2. Manning agencies shall not charge any fee from seafarer-applicants for its recruitment &
placement services. All expenses for hiring seamen shall be shouldered by foreign shipping
principals.
3. No other fees/charges, including processing fees shall be imposed against any worker
CHARGEABLE FEES

a. visa fee;
b. airfare;
c. POEA processing fee; and
d. OWWA membership fee.
-based agency may charge and collect from its hired workers a placement fee in an amount
equivalent to one month salary, exclusive of documentation costs. These documentation costs shall
include expenses for the ff:
a. Passport;
b. NBI/ Police/ Barangay clearance;
c. Authentication;
d. Birth Certificate;

e. Medicare;
f. Trade test, if necessary;
g. Inoculation, when required;
h. Medical Examination fees.

be collected from a hired worker. No other charges in whatever form, manner or purpose, shall be
imposed on and be paid by the worker without prior approval by the POEA.

facilities of the recruitment agency.

ART. 33. Reports on employment status. - Whenever the public interest requires, the Secretary
of Labor may direct all persons or entities within the coverage of this Title to submit a report on the
status of employment, including job vacancies, details of job requisitions, separation from jobs, wages,
other terms and conditions and other employment data.
ART. 34. Prohibited practices. - It shall be unlawful for any individual, entity, licensee, or holder of
authority:
(a) To charge or accept, directly or indirectly, any amount greater than that specified in the schedule
of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater
than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
(d) To induce or attempt to induce a worker already employed to quit his employment in order to
offer him to another unless the transfer is designed to liberate the worker from oppressive terms
and conditions of employment;
(e) To influence or to attempt to influence any person or entity not to employ any worker who has
not applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality
or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;

(h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may
be required by the Secretary of Labor.
(i) To substitute or alter employment contracts approved and verified by the Department
of Labor from the time of actual signing thereof by the parties up to and including the periods of
expiration of the same without the approval of the Secretary ofLabor;
(j) To become an officer or member of the Board of any corporation engaged in travel agency or to
be engaged directly or indirectly in the management of a travel agency; and
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules and
regulations.
PROHBITED PRACTICES
It is
also a deterrant to loan sharks who lend money at usurious interests.

publishing false notice or information in relation to recruitment or employment.

ART. 35. Suspension and/or cancellation of license or authority. - The Minister of Labor shall have the
power to suspend or cancel any license or authority to recruit employees for overseas employment for
violation of rules and regulations issued by the Ministry of Labor, the Overseas Employment
Development Board, or for violation of the provisions of this and other applicable laws, General Orders
and Letters of Instructions.
SUSPENSION OR CANCELLATION OF LICENSE

for the purpose of securing a license or renewal thereof, etc. The acts prohibited under Art. 34 are not
just grounds for suspension or cancellation of license or authority. They likewise constitute illegal
recruitment under RA 8042.
Concurrent Jurisdiction to Suspend or Cancel a License

suspend or cancel a license.

PERSONS LIABLE; DURATION OF LIABILITY

with a foreign principal.

vered their agency agreement at the
time the worker was injured the recruitment agency may still be sued for violation of the employment
contract, if no notice of the agency agreements termination was given to the employee.
ecruitment agency and the principal to the worker extends up to and until
the expiration of the employment contracts of the employees recruited and employed pursuant to the
said employment agreement.
SOLIDARY LIABILITY ASSUMED BY RECRUITMENT AGENT
Contract contained a provision empowering the agency to sue and be sued jointly and solidarily with
the foreign principal for any of the violations of the recruitment agreement and the contracts of
employment. These contractual undertakings constitute the legal basis for private agencies being liable
jointly and severally with its principal, for all claims filed by recruited workers which may arise in
connection with the implementation of the service agreements or employment contracts. (Royal Crown
Inernationale vs. NLRC)
Contract by Principal

private respondent, nevertheless, petitioner, as the manning agent in the Philippines, is jointly and
solidarily responsible with its principal. (Seagull Maritime Corp vs. Balatongan)
Proper Party

a complaint.
SUABILITY OF A FOREIGN CORPORATION WHICH HIRES FILIPINO WORKERS

in and found liable by Philippine courts.

DEREGULATION AND PHASE OUT
-out of POEAs regulatory function so that the migration of workers will
become strictly a matter between the worker and his employer. This projected deregulation has stirred
some controversies which, to this day, continue to remain unresolved.
Non License or Non-Holder of Authority any person/corp/entity w/c has not been issued a valid
license or authority to engage in recruitment & placement by the Sec of Labor, or whose license or
authority has been suspended, revoked or cancelled by the POEA and the Secretary.
Grounds for Revocation of License

1. Incurring an accumulated 3 counts of suspension by an agency based on final and executor orders
w/in the validity period of its license;
2. Violation/s of the conditions of license;
3. Engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof;
and
4. Engaging in the recruitment or placement of workers to jobs harmful to the public health or
morality or to the dignity of the RP
Grounds for Suspension/Cancellation of License
1. The acts prohibited under Art 34;
2. Charging a fee before the worker is employed or in excess of the authorized amt;
3. Doing recruitment in places outside its authorized area;
4. Deploying workers w/o processing through the POEA; and
5. Publishing job announcements w/o POEAs prior approval
Jurisdiction
The DOLE Sec and the POEA Admin have concurrent jurisdiction to suspend or cancel a license
Liability of Recruitment Agency

the agency is required to submit a doc containing its power to sue and be sued jointly and solidarily w/
the principal or foreign-based employer for any of the violations of the recruitment agreement, and the
contracts of employment
Note: The recruitment agency may still be sued even if agency agreement bet recruitment agency &
principal is already severed if no notice of the termination was given to the EE
Exception to Liability of Recruitment agency
send them back to their foreign EER
despite their knowledge of its inability to pay their wages
Contract by Principal
contract w/ the EE, the manning
agent in the PH is jointly & solidarily liable w/ the principal
Suability of Foreign Corps

country may be suid in and found

liable by Ph courts

Chapter III: MISCELLANEOUS PROVISIONS

ART. 36. Regulatory power. - The Secretary of Labor shall have the power to restrict and regulate the
recruitment and placement activities of all agencies within the coverage of this Title and is hereby
authorized to issue orders and promulgate rules and regulations to carry out the objectives and
implement the provisions of this Title.
ART. 37. Visitorial Power. - The Secretary of Labor or his duly authorized representatives may, at any
time, inspect the premises, books of accounts and records of any person or entity covered by this Title,
require it to submit reports regularly on prescribed forms, and act on violation of any provisions of this
Title.
ART. 38. Illegal recruitment.
(a) Any recruitment activities, including the prohibited practices enumerated under Article 34 of this
Code, to be undertaken by non-licensees or non-holders of authority, shall be deemed illegal and
punishable under Article 39 of this Code. The Department of Labor and Employment or any law
enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered an
offense involving economic sabotage and shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more
persons conspiring and/or confederating with one another in carrying out any unlawful or illegal
transaction, enterprise or scheme defined under the first paragraph hereof. Illegal recruitment is
deemed committed in large scale if committed against three (3) or more persons individually or as a
group.
(c) The Secretary of Labor and Employment or his duly authorized representatives shall have the
power to cause the arrest and detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger to national security and public
order or will lead to further exploitation of job-seekers. The Secretary shall order the search of the
office or premises and seizure of documents, paraphernalia, properties and other implements used
in illegal recruitment activities and the closure of companies, establishments and entities found to
be engaged in the recruitment of workers for overseas employment, without having been licensed
or authorized to do so.

AUTHORIZED entities;

the list of ACTS CONSIDERED AS ILLEGAL RECRUITMENT has also been EXPANDED as found in SECTION 6,
RA 8042: Definition: xxx Illegal Recruitment shall mean any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers and includes referring contract services, promising or
advertising for employment abroad, whether for profit or not, when undertaken by a non-licensee or
non-holder of authority as contemplated under the Labor Code; Provided, that any such non-licensee or
non-holder who, in any manner, offers or promises for a fee employment abroad to two or more
persons shall be deemed so engaged. It shall likewise include the following acts whether committed by
any person, WHETHER A NON-LICENSEE, NON-HOLDER, LICENSEE OR HOLDER OF AUTHORITY:
a.) To change or accept directly or indirectly any amount greater than that specified in the
schedule of allowable fees prescribed by the DOLE Secretary, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
b.) To furnish of publish any false notice or information or document in relation to recruitment
or employment;
c.) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code;
d.) To induce or attempt to induce a worker already employed to quit his employment in order
to offer him another unless the transfer is designed to liberate a worker from oppressive terms
and conditions of employment;
e.) To influence or attempt to influence any person or entity not to employ any worker who has
not applied for employment through his agency;
f.) To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
g.) To obstruct or attempt to obstruct inspection by the DOLE Secretary or by his duly authorized
representative;
h.) To fail to submit reports on the status of employment, placement vacancies, remittance of
forex earnings, separation from jobs, departures and such other information as may be required
by the DOLE Secretary;
i.) To substitute or alter to the prejudice of the worker, employment contracts approved and
verified by the DOLE from the time of the actual signing thereof by the parties up to and
including the period of the expiration of the same without the approval of the DOLE;
j.) For an officer or agent of a recruitment or placement agency to become an officer or member
of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly
in the management of a travel agency;

k.) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under the provisions of the
Labor Code and its IRRs;
l.) Failure to actually deploy without valid reason as determined by the DOLE;
m.) Failure to reimburse expenses incurred by the worker in connection with his documentation
and processing for purposes of deployment, in cases where the deployment does not actually
take place without the workers fault.

Illegal Recruitment when committed by a syndicate or in large scale shall be considered an offense
involving economic sabotage. Illegal Recruitment is deemed committed by a syndicate if carried out by a
group of three (3) or more persons conspiring and/or confederating with one another. It is deemed
committed in large scale if committed against three (3) or more persons individually or as a group.
Persons Liable: Principals, Accomplices, and Accessories;
for Juridical Persons: the officers HAVING CONTROL, MANAGEMENT, OR DIRECTION of their business

liable; UNLESS, it is shown that such employees ACTIVELY AND CONSCIOUSLY PARTICIPATED in the
illegal recruitment
OF RECEIPTS: will not defeat the purpose of criminal prosecution AS LONG AS THE WITNESSES
CAN POSITIVELY SHOW THROUGH THEIR RESPECTIVE TESTIMONIES that the accused was the one
involved in the prohibited recruitment; credible testimonies suffice
SABOTAGE: IR committed by syndicate and IR committed in large scale; each is an
independent and separate category that can stand on their own and need not coincide or concur within
the same case
filing suit against such person for ESTAFA
under the RPC as long as the requisites for said felony are present

UNCONSTITUTIONAL see Salazar v. Achacoso and Marquez, G.R. No. 81510, March 14, 1990
- under the Constitution (Art. III, Sec. 2, 1987 Constitution) only a judge may issue a warrant of arrest or
a search warrant - the Secretary of Labor is not a judge hence is no longer granted the power to issues
said warrants. Authorities must now undergo judicial process - Exception: Deportation or Illegal and
Undesirable Aliens Casesthe President or the Commissioner of Immigration may order arrested
following a final order of deportation for the purpose of deportation

BJECT TO ARREST: Illegal Recruiters are still subject to arrest, upon compliance with the procedure
as provided for by law namely through a warrant of arrest issued by a judge of an RTC where a criminal
information was filed after preliminary investigation; also RULES ON WARRANTLESS ARRESTS under Rule
113, Section 5 of the ROC may still apply to illegal recruiters when they fall under the circumstances
enumerated therein; WARRANTLESS SEARCHES: INCIDENTAL to lawful arrest; PLAIN VIEW; with
INDIVIDUALS CONSENT

issue and order closure of illegal recruitment establishes, this being an ADMINISTRATIVE and
REGULATORY action; Issuance after an ex parte preliminary examination to determine whether the
activities of a non-licensee constitute a danger to national security and public order or will lead to
further exploitation of job seekers
27; these cover the POEAs Anti-Illegal Recruitment
Programs; Provision for Legal Assistance; Complaints Desk; Surveillance; Issuance of Closure Order;
Implementation of Closure Order; Report on CO, Institution of Criminal Action; Motion to Lift CO; Who
may file such Motion; Grounds for Lifting or Reopening; Appeal and Re-padlocking of Office

Elements of Illegal Recruitment

1. The offender is a licensee/non-licensee or holder/non-holder of authority engaged in the recruitment
& placement of workers; and
2. The offender undertakes either any recruitment activities devided under Art 13 (b) or any prohibited
practices in Art 34
Simple Illegal Recruitment Where a person:
1. undertakes any recruitment activity defined under Art 13(b) or any prohibited practice enumerated
under Arts 34 & 38 of the LC; and
2. does not have a license or authority to lawfully engage in the recruitment & placement of any
workers.Illegal Recruitment in Large Scale further requires a 3rd element:
3. The offense is committed against 3/more persons, individually or as a group
Illegal Recruitment as Economic Sabotage:
1. When illegal recruitment is committed by a syndicate (when 3/more persons conspire or confederate
w/ one another in carrying out an unlawful or illegal transaction, enterprise or scheme);
2. When illegal recruitment is committed in a large scale (if committed against 3/more persons
individually or as a group
Consequences of Conviction

1. Automatic revocation of license/authority;

2. Forfeiture of the cash & surety bonds;
3. Conviction for the crime of estafa, if found guilty thereof
Illegal Recruitment vs Estafa

Acts Constituting Estafa - the accused represented themselves to complainants to have the capacity to
send workers abroad although they did not have any authority or license, enabling them to obtain
placement fee
Venue of criminal action arising from Illegal Recruitment
The complainant may, at his option file at the RTC of the province/city:
a.) where the offense was committed; or
b.) where the offended party resides at the time of the commission of the
offense
Prescriptive Period Imprisonment Fine:
Simple: 5 yrs

12-20 yrs

P1-2M

Economic Sabotage:
20 yrs

Life

P2-5M

Note: Max penalty if the person illegally recruited is less than 18 y/o or committed by a non-licensee or
non-holder of authority
Absence of receipts evidencing payment, not fatal to prosecutions case for illegal recruitment as long
as the witnesses can positively show through their respective testimonies that the accused is the one
involved in prohibited recruitment
Liability of Local EEnt agency solidarily liable w/ the foreign principal for unpaid salaries of a worker
recruited. Before recruiting, the agency is required to submit a doc containing its power to sue and be
sued jointly and solidarily w/ the principal or foreign-based EER for any of the violations of the
recruitment agreement and the contracts of EEnt Liability of Company Engaged in Illegal Recruitment
may be held as principal, zogether his EER, if it is shown that he actively & consciously participated in

illegal recruitment
Issuance of search warrant/warrant of arrest
as it gives the Sec of Labor thepower to issue search or arrest
warrants
Commissioner of Immigration
may order arrested, following a final order of deportation
Note: the Sec of Labor may order closure of illegal recruitment establishments because it is only
administrative & regulatory in nature

ART. 39. Penalties.

(a) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P1000,000.00) shall
be imposed if illegal recruitment constitutes economic sabotage as defined herein;
(b) Any licensee or holder of authority found violating or causing another to violate any provision of
this Title or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty
of imprisonment of not less than two years nor more than five years or a fine of not less than
P10,000nor more than P50,000, or both such imprisonment and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than four years nor more than eight years or a fine of not less
than P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion of the
court;
(d) If the offender is a corporation, partnership, association or entity, the penalty shall be imposed
upon the officer or officers of the corporation, partnership, association or entity responsible for
violation; and if such officer is an alien, he shall, in addition to the penalties herein prescribed, be
deported without further proceedings;
(e) In every case, conviction shall cause and carry the automatic revocation of the license or
authority and all the permits and privileges granted to such person or entity under this Title, and the
forfeiture of the cash and surety bonds in favor of the Overseas Employment Development Board or
the National Seamen Board, as the case may be, both of which are authorized to use the same
exclusively to promote their objectives.

Title II: EMPLOYMENT OF NON-RESIDENT ALIENS

ART. 40. Employment permit of non-resident aliens. - Any 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 Department of Labor.
The employment permit may be issued to a non-resident alien or to the applicant employer after a
determination of the non-availability of a person in the Philippines who is competent, able and willing at
the time of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit may be issued
upon recommendation of the government agency charged with the supervision of said registered
enterprise.
All foreign nationals who intend to engage in gainful EENT in the PH shall apply for AEP Employment
Permit Required
1. all foreign nationals seeking admission to the PH for the purpose of EENT;
2. all non-resident foreign nationals already working in the PH;
3. non-resident foreign nationals admitted to the PH on non-working visas and who wish to seek
EENT; and
4. missionaries or religious workers who intend to engage in gainful EENT.
Note: AEP should be secured regardless of the source of compensation and duration of the EENT,
whether the EENT is part-time or temp
An AEP is issued based on the ff:
1. Compliance by the applicant EER or the foreign national w/ the substantive & documentary
requirements;
2. Determination of DOLE Sec that there is no available Filipino national who is competent, able and
willing to do the job for the EER; and
3. Assessment of the DOLE Sec that the EENT of the foreign national will redound to national benefit
Note: Understudy Training Program is no longer a requirement in the issuance of AEP and the EEr has
now the option to implement transfer of technology
Requisite for EENT of Resident Aliens:

their Alien Employment Registration Cert (AERC)

Exemption from Permit

1. All members of the Diplomatic service and foreign govt officials accredited by and w/ reciprocity
arrangement w/ the Ph govt;
2. Officers and staff of international orgs of w/c the PH is a member, and their legitimate spouses
desiring to work in the PH;
3. Foreign nationals elected as members of Governing Board who do not occupy any other position,
but have only voting rights in the corp;
4. All foreign nationals granted exemption by law;5. Owners & representatives of foreign nationals
whose companies are accredited by the POEA who come to the PH for a limited period and solely for
the purpose of interviewing Filipino applicants for EENT abroad;
6. Foreign nationals who come to the PH to teach, present and/or conduct research studies in univs
and colleges as visiting, exchange or adjunct professors under formal agreements bet the univs or
colleges in the PH an foreign univs or colleges; or bet the Ph govt and foreign govt; provided that the
exemption is on a reciprocal basis; and
7. Resident foreign nationals.
Grounds for denial of Application of AEP
1. Misrepresentation of facts in the application;
2. Submission of falsified docs;
3. The foreign national has a derogatory record; or
4. Availability of a Fil who is competent, able and willing to the job intended for the alien.
Grounds for suspension of AEP
1. The continued stay of the foreign national my result in damage to the interest of the industry of
the country; and
2. the EENT of the alien is suspended by the EER or by the order of the court
Grounds for revocation of AEP
1. Non-compliance w/ any of the requirement/conditions for w/c the AEP was issued;
2. Misrepresentation of facts in the application;
3. Submission of falsified docs;
4. Meritorious objection or information against the EENT of foreign national as determined by the
Regional Dir;

5. Foreign national has a derogatory record; and

6. EER has terminated the EENT of the foreign national.
Validity of EENT Permit
ct, consultancy services or other modes of engagement provides
otherwise, w/c shall in no case exceed 5yrs

Rule on Nationalized Business

GR: Foreigners may NOT be employed in certain nationalized business.
Anti-Dummy Law 2-A prohibits the EENT of aliens in entities engaged in business whose exercise or
enjoyment is reserved only to Fils or to corporations or assocs whose capital should be at least 60% Filowned
Exceptions:
1. Where the Sec of Justice specifically authorizes the EEnt of technical personnel;
2. Aliens who are members of the Board of directors of corps in proportion to their allowable
participation in the capital of such entities; and
3. Enterprises registered under the Omnibus Investment Code in case of technical, supervisory or
advisory positions, but for a limited periodd.
ART. 41. Prohibition against transfer of employment.
(a)After the issuance of an employment permit, the alien shall not transfer to another job or change
his employer without prior approval of the Secretary of Labor.
(b) Any non-resident alien who shall take up employment in violation of the provision of this Title
and its implementing rules and regulations shall be punished in accordance with the provisions of
Articles 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to deportation after service of his sentence.

(a) After the issuance of the employment permit, the alien shall not transfer to another job or change his
employer without prior approval from the Secretary of DOLE
(b) Any non-resident alien who shall take up employment in violation of provision of this Title

and its IRRs shall be punished in accordance with Arts. 2894 and 290 of the Labor Code. In addition, the
alien worker shall be subject to deportation after service of his sentence.

EMPLOYMENY REGISTRATION CARD (AERC)

and the ANTI-DUMMY LAW (C.A. no. 108 as amended by PD715)
Foreigners may not be employed in certain nationalized industries; law provides and subjects
reservation of ownership and control of such corporations to the 60% requirement, i.e. public utility,
natural resources; financing companies; however, media and advertising requires 100% Filipino
ownership and management (Consti)

employment within nationalized industries:

a.) where the DOJ Secretary specifically authorizes the employment of foreign technical personnel,
or
b.) where the aliens are elected members of the Board of Directors or governing body of
corporations or associations in proportion to their allowable participation in the capital of such
entities

Permits to Foreign Nationals; the following are required to apply for an Alien Employment Permit (AEP):
1.) All foreign nationals seeking admission to the Philippines for the purpose of employment;
2.) Missionaries or religious workers who intend to engage in gainful employment;
3.) Holders of Special Investors Resident Visa (SIRV), Special Retirees Resident Visa (SRRV), Treaty
Trades Visa, or Special NonImmigration Visa, who occupy any advisory, supervisory, or technical
position in any establishment;
4.) Agencies, organizations, or individuals whether public or private, who secure the services of
foreign professional to practice their professions in the Philippines under reciprocity and
international agreements;
5.) Non-Indo Chinese Refugees who are asylum seekers and given refugee status by the UN High
Commissioner on Refugees (UNHCR) of the DOJ under the DOJ Department Order no. 49, 1998.
6.) Resident foreign Nationals seeking employment in the Philippines (see D.O. no. 21-02 which
suspends until further notice the requirement for Resident Foreign Nationals to secure AEP)
-01 further, EXEMPTS the following from AEP requirements:
1.) All members of the diplomatic services and foreign government officials accredited by the
Philippine Government;

2.) Officers and staff of the international organizations of which the Philippine government is a
cooperating member, and their legitimate spouses desiring to work in the Philippines;
3.) Foreign nationals elected as members of the Governing Board who do not occupy any other
position, but have only voting rights in the corporation, and
4.) All foreign nationals granted exemption by special laws and all other laws that may be
promulgated by Congress

a.) Compliance by the applicant employer or the foreign national with the substantive and
documentary requirements;
b.) Determination of the DOLE Secretary that there is no Filipino national who is competent, able
and willing to do the job for which the services of the applicant is desired;
c.) Assessment of the DOLE Secretary that the employment of the Foreign national will redound to
national benefit.
- Understudy Program is no longer required for the issuance of AEP
- G.R. Validity of AEP is for ONE YEAR unless the employment contract, consultancy services, or other
modes of engagement or term of office for elective officers, provides for a longer period;
- RENEWAL OF AEP: application must be filed at least 15 days before its expiration;
- EFFECTIVITY OF RENEWAL: one day after the expiration of previous permit; regardless of whether or
not the renewal is granted before or after the expiration of the previous permit;

ISSUED; except in cases of holders of MULTIPLE POSITIONS IN ONE CORPORATION

ART. 42. Submission of list. - Any employer employing non-resident foreign nationals on the effective
date of this Code shall submit a list of such nationals to the Secretary of Labor within thirty (30) days
after such date indicating their names, citizenship, foreign and local addresses, nature of employment
and status of stay in the country. The Secretary of Labor shall then determine if they are entitled to an
employment permit.

BOOK TWO: HUMAN RESOURCES DEVELOPMENT PROGRAM

Title I: NATIONAL MANPOWER DEVELOPMENT PROGRAM

Chapter I: NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION

ART. 43. Statement of objective. - It is the objective of this Title to develop human resources, establish
training institutions, and formulate such plans and programs as will ensure efficient allocation,
development and utilization of the nations manpower and thereby promote employment and
accelerate economic and social growth.
ART. 44. Definitions. - As used in this Title:
(a) "Manpower" shall mean that portion of the nations population which has actual or potential
capability to contribute directly to the production of goods and services.
(b) "Entrepreneurship" shall mean training for self-employment or assisting individual or small industries
within the purview of this Title.
Art 43-56 TECHNICAL EDUCATION AND SKILLS DEVT AUTHORITY (TESDA)
- replaced the National Manpower & Youth Council under RA 7796
Statement of Goals & Objectives
1. To attain international competitiveness;
2. To meet demands for quality middle-level manpower;
3. To disseminate scientific & technical knowledge base;
4. To recognize & encourage the complementary roles of pub & private institutions; and
5. To inculcate desirable values.
Middle-level Manpower
1. Those who have acquired practical skills & knowledge through formal or non-formal educ &
training equivalent to at least a secondary educ but preferably a post-secondary educ w/ a
corresponding degree/diploma; or
2. Skilled workers who have become highly competent in their trade or craft as attested by industry.

Title II: TRAINING AND EMPLOYMENT OF SPECIAL WORKERS

Chapter I:APPRENTICES

ART. 57. Statement of objectives. - This Title aims:

(1) To help meet the demand of the economy for trained manpower;
(2) To establish a national apprenticeship program through the participation of employers, workers
and government and non-government agencies; and
(3) To establish apprenticeship standards for the protection of apprentices.

ART. 58. Definition of Terms. - As used in this Title:

(a) "Apprenticeship" means practical training on the job supplemented by related theoretical
instruction.
(b) An "apprentice" is a worker who is covered by a written apprenticeship agreement with an
individual employer or any of the entities recognized under this Chapter.
(c) An "apprenticeable occupation" means any trade, form of employment or occupation which
requires more than three (3) months of practical training on the job supplemented by related
theoretical instruction.
(d) "Apprenticeship agreement" is an employment contract wherein the employer binds himself to
train the apprentice and the apprentice in turn accepts the terms of training.
On-the-job training practical work experience through actual participation in productive activities
given to or acquired by an apprentice
Highly technical industries a trade, business, enterprise, industry or other activity, w/c is engaged in
the application of advanced technology
ART. 59. Qualifications of apprentice. - To qualify as an apprentice, a person shall:
(a) Be at least fourteen (14) years of age; now 15 years old by virtue of RA 7610 as amended by RA
7658
(b) Possess vocational aptitude and capacity for appropriate tests; and
(c) Possess the ability to comprehend and follow oral and written instructions.
Trade and industry associations may recommend to the Secretary of Labor appropriate educational
requirements for different occupations.
(SPECIAL LAW)
1. At least 15 y/o, provided that if below 18 y/o, he shall not be eligible for hazardous occupation;

2. Physically fit for the occupation in w/c he desires to be trained;

3. Possess vocational aptitude and capacity for the particular occupation as established through
appropriate tests; and
4. Possess the ability to comprehend and follow oral & written instructions.
Note: Total physical fitness is not required of the apprentice-applicant unless it is essential to the
expeditious and effective learning of the occupation.
Only physical defects w/c constitute real impediments to effective performance as determined by the
plant apprenticeship committee may disqualify an applicant
ART. 60. Employment of apprentices. - Only employers in the highly technical industries may employ
apprentices and only inapprenticeable occupations approved by the Secretary of Labor and
Employment. (As amended by Section 1, Executive Order No. 111, December 24, 1986).
-on
training, more or less formal, to learn the ropes of a skilled job. It is usually the point of entry to the
world of work.
DOLE Policy on Apprenticeship; by virtue of which, the
DOLE is required to undertake the review of trades, occupation, and jobs in all sectors of the economy
to determine the apprenticeability, after which it shall submit a list of apprenticeable occupations.

an explicit prohibition on employment of children below 15 years of age, although the said law
recognizes certain exceptions, an apprenticeship is not included in the enumeration.

Qualifications to be met by EER:

1. Only EERS in highly technical industries may employ apprentices; and
2. Only in apprenticeable occupations as determined by the TESDA.
Requisites for a Valid apprenticeship
1. Qualifications of apprentice are met;
2. Apprentice earns not less than 75% of the prescribed minimum salary;
3. Apprenticeship agreemt duly executed & signed;
4. Apprenticeship program must be approved by the TESDA; otherwise the apprentice shall be deemed a
regular EE;

5. Period of apprenticeship shall not exceed 6 months

Note: at the termination of the apprenticeship, the EER is not required to continue the EENT
There is no valid apprenticeship if:
1. The agreemt submitted to the TESDA was made long after the workers started undergoing
apprenticeship;
2. The work performed by the apprenticeship was different from those allegedly approved by TESDA;
3. The workers undergoing apprenticeship are already skilled workers;
4. The workers were required to continue undergoing apprenticeship beyond 6mos.

ART. 61. Contents of apprenticeship agreements. - Apprenticeship agreements, including the wage
rates of apprentices, shall conform to the rules issued by the Secretary of Labor and Employment. The
period of apprenticeship shall not exceed six months. Apprenticeship agreements providing for wage
rates below the legal minimum wage, which in no case shall start below 75 percent of the applicable
minimum wage, may be entered into only in accordance with apprenticeship programs duly approved
by the Secretary of Labor and Employment. The Department shall develop standard model programs of
apprenticeship. (As amended by Section 1, Executive Order No. 111, December 24, 1986).
1. Full name & address of the contracting parties;
2. Date of birth of the apprentice;
3. Name of trade, occupation or job in w/c the apprentice shall be trained and the dates on w/c such
training will begin and will proximately end;
4. Approp number of hrs of OJT w/ compulsory theoretical instruction w/c the apprentice shall
undergo during his training;
5. Schedule of the work processes of the trade/occupation in w/c the apprentice shall be trained
and the approx. time to be spent on the job in each process;
6. Graduated scale of wages to be paid to the apprentice;
7. Probationary pd of the apprentice during wc either party ay summarily terminate their agreemt;
and
8. A clause that if the EER is unable to fulfill his training oblig, he may transfer the agreemt, w/ the
consent of the apprentice to any other EER who is willing to assume such oblig.
Working Hrs shall not exceed the max number of hrs prescribed by law, if any, for a worker of his
age and sex. Time spent in compulsorily theoretical instruction shall be considered hrs of work. An

apprentice not otherwise barred by law from working 8hrs may be requested by his EER to work
overtime and paid accordingly.

- Nitto Enterprises v. NLRC and R. Capili (G.R. no. 114337) September 29, 1995 - It is mandated that
apprenticeship agreements entered into by an employer and an apprentice shall be entered only in
accordance with the apprenticeship program duly approved by the Minister of Labor and Employment;
hence, since the apprenticeship agreement between petitioner and private respondent has no force and
effect in the absence of a valid apprenticeship program duly approved by the DOLE, private
respondents assertion that he was hired not as an apprentice but as a delivery boy deserves credence.

ART. 62. Signing of apprenticeship agreement. -Every apprenticeship agreement shall be signed by the
employer or his agent, or by an authorized representative of any of the recognized organizations,
associations or groups and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf by his parent or guardian, if the
latter is not available, by an authorized representative of the Department of Labor, and the same shall
be binding during its lifetime.
Every apprenticeship agreement entered into under this Title shall be ratified by the appropriate
apprenticeship committees, if any, and a copy thereof shall be furnished both the employer and the
apprentice.
Who signs:
1. The apprentice, if of age, otherwise, by his parent or guardian, or in the latters absence, by an
authorized rep of TESDA; and
2. EER or his duly authorized rep
ART. 63. Venue of apprenticeship programs. - Any firm, employer, group or association, industry
organization or civic group wishing to organize an apprenticeship program may choose from any of the
following apprenticeship schemes as the training venue for apprentice:
(a) Apprenticeship conducted entirely by and within the sponsoring firm, establishment or entity;
(b) Apprenticeship entirely within a Department of Labor and Employment training center or other
public training institution; or
(c) Initial training in trade fundamentals in a training center or other institution with subsequent actual
work participation within the sponsoring firm or entity during the final stage of training.

ART. 64. Sponsoring of apprenticeship program. - Any of the apprenticeship schemes recognized herein
may be undertaken or sponsored by a single employer or firm or by a group or association thereof or by
a civic organization. Actual training of apprentices may be undertaken:
(a) In the premises of the sponsoring employer in the case of individual apprenticeship programs;
(b) In the premises of one or several designated firms in the case of programs sponsored by a group or
association of employers or by a civic organization; or
(c) In a Department of Labor and Employment training center or other public training institution.
ART. 65. Investigation of violation of apprenticeship agreement. - Upon complaint of any interested
person or upon its own initiative, the appropriate agency of the Department of Labor and Employment
or its authorized representative shall investigate any violation of an apprenticeship agreement pursuant
to such rules and regulations as may be prescribed by the Secretary of Labor and Employment.

Valid Cause to terminate agreement

1. By the EER:
a. Habitual absenteeism in OJT and related theoretical instructions;
b. Willful disobedience of company rules or insubordination to lawful order of a superior;
c. Poor physical condition, permanent disability or prolonged illness w/c incapacitates the
apprentice from working;
d. Theft or malicious destruction of company property and/or equipment
e. Poor efficiency or perf on the job or in the classroom for a prolonged period despite warnings duly
given to the apprentice; and
f. Engaging in violence or other forms of gross misconduct inside the EERs premises
2. By the apprentice:
a. Substandard or deleterious working conditions w/in the EERs premises;
b. Repeated violations by the EER of the terms of the apprenticeship agreemt;
c. Cruel or inhumane treatment by the EER or his subordinates;
d. Personal problem s/c in the opinion of the apprentice shall prevent him from a satisfactory perf of
his job; and
e. Bad health or continuing illness.

ANTONIO M. SERRANO VS. GALLANT MARITIME SERVICES, INC.

FACTS:
Petitioner Antonio Serrano was hired by respondents Gallant Maritime Services, Inc. and Marlow
Navigation Co., Inc., under a POEA-approved contract of employment for 12 months, as Chief Officer,
with the basic monthly salary of US$1,400, plus $700/month overtime pay, and 7 days paid vacation
leave per month.
On the date of his departure, Serrano was constrained to accept a downgraded employment contract
upon the assurance and representation of respondents that he would be Chief Officer by the end of
April 1998.
Respondents did not deliver on their promise to make Serrano Chief Officer. Hence, Serrano refused to
stay on as second Officer and was repatriated to the Philippines, serving only two months and 7 days,
leaving an unexpired portion of nine months and twenty-three days.
Upon complaint filed by Serrano before the Labor Arbiter (LA), the dismissal was declared illegal.
On appeal, the NLRC modified the LA decision based on the provision of RA 8042. Serrano filed a Motion
for Partial Reconsideration, but this time he questioned the constitutionality of the last clause in the 5th
paragraph of Section 10 of RA 8042.
ISSUES:
1. Whether or not the subject clause violates Section 10, Article III of the Constitution on nonimpairment of contracts;
2. Whether or not the subject clause violate Section 1, Article III of the Constitution, and Section 18,
Article II and Section 3, Article XIII on labor as a protected sector.
HELD:
On the first issue.
The answer is in the negative. Petitioners claim that the subject clause unduly interferes with the
stipulations in his contract on the term of his employment and the fixed salary package he will receive is
not tenable.
The subject clause may not be declared unconstitutional on the ground that it impinges on the
impairment clause, for the law was enacted in the exercise of the police power of the State to regulate a
business, profession or calling, particularly the recruitment and deployment of OFWs, with the noble
end in view of ensuring respect for the dignity and well-being of OFWs wherever they may be employed.
On the second issue.
The answer is in the affirmative.

To Filipino workers, the rights guaranteed under the foregoing constitutional provisions translate to
economic security and parity. Upon cursory reading, the subject clause appears facially neutral, for it
applies to all OFWs. However, a closer examination reveals that the subject clause has a discriminatory
intent against, and an invidious impact on, OFWs at two levels:
First, OFWs with employment contracts of less than one year vis--vis OFWs with employment contracts
of one year or more;
Second, among OFWs with employment contracts of more than one year; and
Third, OFWs vis--vis local workers with fixed-period employment;
The subject clause singles out one classification of OFWs and burdens it with a peculiar disadvantage.
Thus, the subject clause in the 5th paragraph of Section 10 of R.A. No. 8042 is violative of the right of
petitioner and other OFWs to equal protection. The subject clause or for three months for every year
of the unexpired term, whichever is less in the 5th paragraph of Section 10 of Republic Act No. 8042 is
DECLARED UNCONSTITUTIONAL.
People of the Philippines (petitioner) v Jamilosa (repondent)
FACTS:
Sometime in the months of January to February, 1996, representing to have the capacity, authority or
license to contract, enlist and deploy or transport workers for overseas employment, did then and there,
willfully, unlawfully and criminally recruit, contract and promise to deploy, for a fee the herein
complainants, namely, Imelda D. Bamba, Geraldine M. Lagman and Alma E. Singh, for work or
employment in Los Angeles, California, U.S.A. in Nursing Home and Care Center.
Prosecution presented three witnesses, namely Imelda Bamba, Geraldine Lagman and Alma
Singh.According to Bamba, she met the appellant on a bus. She was on her way to SM North Edsa where
she was a company nurse. Appellant introduced himself as a recruiter of workers for employment
abroad. Appellant told her he could help her get employed as nurse. Appellant gave his pager number
and instructed her to contact him is shes interested. Sometime in January 1996, appellant fetched her
at her office, went to her house and gave him the necessary documents and handed to appellant the
amount of US$300.00 and the latter showed her a photocopy of her supposed US visa. However, the
appellant did not issue a receipt for the said money. Thereafter, appellant told her to resign from her
work because she was booked with Northwest Airlines and to leave for USA on Feb, 1996. On the
scheduled departure, appellant failed to show up. Instead, called and informed her that he failed to give
the passport and US visa because she had to go to province because his wife died. Trying to contact him
to the supposed residence and hotel where he temporarily resided, but to no avail.
Winess Lagman testified that she is a registered nurse. In January 1996, she went to SM North Edsa to
visit her cousin Bamba. At that time Bamba informed her that she was going to meet to appellant.
Bamba invited Lagman to go with her. The appellant convinced them of his ability to send them abroad.
On their next meeting, Lagman handed to the latter the necessary documents and an amount of

US$300.00 and 2 bottles of black label without any receipt issued by the appellant. Four days after their
meeting, a telephone company called her because her number was appearing in appellants cell phone
documents. The caller is trying to locate him as he was a swindler. She became suspicious and told
Bamba about the matter. One week before her scheduled flight, appellant told her he could not meet
them because his mother passed away.
Lastly, Alma Singh, who is also a registered nurse, declared that she first met the appellant at SM North
Edsa when Imelda Bamba introduced the latter to her. Appellant told her that he is an undercover agent
of FBI and he could fix her US visa. On their next meeting, she gave all the pertinent documents.
Thereafter, she gave P10,000 to the appellant covering half price of her plane ticket. They paged the
appellant through his beeper to set up another appointment but the appellant avoided them as he had
many things to do.
The accused Jamilosa testified on direct examination that he never told Bamba that he could get her a
job in USA, the truth being that she wanted to leave SM as company nurse because she was having a
problem thereat. Bamba called him several times, seeking advices from him. He started courting Bamba
and went out dating until latter became his girlfriend. He met Lagman and Singh thru Bamba. As
complainants seeking advice on how to apply for jobs abroad, lest he be charged as a recruiter, he made
Bamba, Lagman and Singh sign separate certifications, all to effect that he never recruited them and no
money was involved. Bamba filed an illegal recruitment case against him because they quarreled and
separated.
RTC rendered judgment finding accused guilty beyond reasonable doubt of illegal recruitment in large
scale.
ISSUE: Illegal Recruitment in a large scale?
HELD: Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers, and includes referrals, contract services, promising or advertising
for employment, locally or abroad, whether for profit or not. Provided, That 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.
Illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring,
or procuring workers and includes referring, contract services, promising or advertising for employment
abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of authority.
Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed so engaged.
To prove illegal recruitment in large scale, the prosecution is burdened to prove three (3) essential
elements, to wit: (1) the person charged undertook a recruitment activity under Article 13(b) or any
prohibited practice under Article 34 of the Labor Code; (2) accused did not have the license or the
authority to lawfully engage in the recruitment and placement of workers; and (3) accused committed
the same against three or more persons individually or as a group.

As gleaned from the collective testimonies of the complaining witnesses which the trial court and the
appellate court found to be credible and deserving of full probative weight, the prosecution mustered
the requisite quantum of evidence to prove the guilt of accused beyond reasonable doubt for the crime
charged. Indeed, the findings of the trial court, affirmed on appeal by the CA, are conclusive on this
Court absent evidence that the tribunals ignored, misunderstood, or misapplied substantial fact or other
circumstance. The failure of the prosecution to adduce in evidence any receipt or document signed by
appellant where he acknowledged to have received money and liquor does not free him from criminal
liability. Even in the absence of money or other valuables given as consideration for the "services" of
appellant, the latter is considered as being engaged in recruitment activities.
It can be gleaned from the language of Article 13(b) of the Labor Code that the act of recruitment may
be for profit or not. It is sufficient that the accused promises or offers for a fee employment to warrant
conviction for illegal recruit
ART. 66. Appeal to the Secretary of Labor and Employment. - The decision of the authorized agency of
the Department ofLabor and Employment may be appealed by any aggrieved person to the Secretary
of Labor and Employment within five (5) days from receipt of the decision. The decision of the Secretary
of Labor and Employment shall be final and executory.
ART. 67. Exhaustion of administrative remedies. - No person shall institute any action for the
enforcement of any apprenticeship agreement or damages for breach of any such agreement, unless he
has exhausted all available administrative remedies.
ART. 68. Aptitude testing of applicants. - Consonant with the minimum qualifications of apprenticeapplicants required under this Chapter, employers or entities with duly recognized apprenticeship
programs shall have primary responsibility for providing appropriate aptitude tests in the selection of
apprentices. If they do not have adequate facilities for the purpose, the Department of Labor and
Employment shall perform the service free of charge.
ART. 69. Responsibility for theoretical instruction. - Supplementary theoretical instruction to
apprentices in cases where the program is undertaken in the plant may be done by the employer. If the
latter is not prepared to assume the responsibility, the same may be delegated to an appropriate
government agency.
ART. 70. Voluntary organization of apprenticeship programs; exemptions. - (a) The organization of
apprenticeship program shall be primarily a voluntary undertaking by employers;
(b) When national security or particular requirements of economic development so demand, the
President of the Philippines may require compulsory training of apprentices in certain trades,
occupations, jobs or employment levels where shortage of trained manpower is deemed critical as
determined by the Secretary of Labor and Employment. Appropriate rules in this connection shall be
promulgated by the Secretary ofLabor and Employment as the need arises; and

(c) Where services of foreign technicians are utilized by private companies in apprenticeable trades, said
companies are required to set up appropriate apprenticeship programs.
ART. 71. Deductibility of training costs. - An additional deduction from taxable income of one-half (1/2)
of the value oflabor training expenses incurred for developing the productivity and efficiency of
apprentices shall be granted to the person or enterprise organizing an apprenticeship program:
Provided, That such program is duly recognized by the Department ofLabor and Employment: Provided,
further, That such deduction shall not exceed ten (10%) percent of direct labor wage: and Provided,
finally, That the person or enterprise who wishes to avail himself or itself of this incentive should pay his
apprentices the minimum wage. ART. 72. Apprentices without compensation. - The Secretary
ofLabor and Employment may authorize the hiring of apprentices without compensation whose training
on the job is required by the school or training program curriculum or as requisite for graduation or
board examination.

Implementing Rules (Section X, Rule 14) provide, in relation to Art. 72: There is no employeremployee relationship between students on one hand and schools, colleges or universities, on
the other, where there is a written agreement between them under which the former agree to
work for the latter in exchange for the privilege to study free of charge, provided the students
are given real opportunities, including such facilities as may be reasonable and necessary to
finish their chosen courses under such agreement.
Filamer Christian Institue v. Hon. Intermediate Appellate Court, et al, - Section 14, Rule X, Book
III of the IRR of the Labor Code was promulgated by the Secretary of Labor and Employment
only for the purpose of administering and enforcing the provisions of the Labor Code on
conditions of employment. Particularly, Rule X of Book III provides guidelines on the matter by
which the powers of the Labor Secretary shall be exercised; on what records should be kept or
maintained, etc Rule X is merely a guide to the enforcement of the substantive law on labor.
The case does not deal with a labor dispute on conditions of employment between an alleged
employer and employee reliance of petitioner on the IRR is misplaced. An IRR on labor cannot
be used by an employer as a shield to avoid liability under the substantive provisions of the Civil
Code.

Chapter II : LEARNERS
ART. 73. Learners defined. - Learners are 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 exceed three (3) months.
ART. 74. When learners may be hired. - Learners may be employed when:
no experienced workers are available,
the employment of learners is necessary to prevent curtailment of employment opportunities, and

the employment does not create unfair competition in terms of labor costs or impair or lower
working standards.

ART. 75. Learnership agreement. - Any employer desiring to employ learners shall enter into
a learnership agreement with them, which agreement shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which shall not exceed three (3) months;
(c) The wages or salary rates of the learners which shall begin at not less than seventy-five percent
(75%) of the applicable minimum wage; and
(d) A commitment to employ the learners if they so desire, as regular employees upon completion
of the learnership. All learners who have been allowed or suffered to work during the first two (2)
months shall be deemed regular employees if training is terminated by the employer before the end
of the stipulated period through no fault of the learners.
The learnership agreement shall be subject to inspection by the Secretary of Labor and Employment or
his duly authorized representative.
ART. 76. Learners in piecework. - Learners employed in piece or incentive-rate jobs during the training
period shall be paid in full for the work done.
ART. 77. Penalty clause. - Any violation of this Chapter or its implementing rules and regulations shall be
subject to the general penalty clause provided for in this Code.
requiring skills that can be acquired
through actual work experience; both learner and apprentice may be paid wages twenty-five (25%)
percent lower than the applicable legal minimum wage
Learner is not an apprentice, but an apprentice is considered a learner.

Chapter III: HANDICAPPED WORKERS

ART. 78. Definition. - Handicapped workers are those whose earning capacity is impaired by age or
physical or mental deficiency or injury.
ART. 79. When employable. - Handicapped workers may be employed when their employment is
necessary to prevent curtailment of employment opportunities and when it does not create unfair
competition in labor costs or impair or lower working standards.
ART. 80. Employment agreement. - Any employer who employs handicapped workers shall enter into
an employment agreement with them, which agreement shall include:
a. The names and addresses of the handicapped workers to be employed;
b. The rate to be paid the handicapped workers which shall not be less than seventy five (75%) percent
of the applicable legal minimum wage;
c. The duration of employment period; and
d. The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his duly
authorized representative.
ART. 81. Eligibility for apprenticeship. - Subject to the appropriate provisions of this Code, handicapped
workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the
performance of job operations in the particular occupations for which they are hired.
- Republic Act no. 7277, March 24, 1992 insures equal
opportunities for disabled persons and prohibits discrimination against them

BOOK THREE: CONDITIONS OF EMPLOYMENT

Title I: WORKING CONDITIONS AND REST PERIODS

Chapter I: HOURS OF WORK
ART. 82. Coverage. - The provisions of this Title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees, managerial employees,
field personnel, members of the family of the employer who are dependent on him for support,
domestic helpers, persons in the personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.

As used herein, "managerial employees" refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a department or subdivision
thereof, and to other officers or members of the managerial staff.
"Field personnel" shall refer to 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 reasonable certainty.
COVERAGE

govt employees,
managerial employees [includes supervisiors (only as regards Art 82) likewise responsible for the
effective & efficient operation of their respective depts. ]
field personnel
those whose performance of their job/service is not supervised by the ER or his rep, the workplace
being away from the principal office and whose hours & days of work cannot be determined w/
reasonable certainty; hence they are paid specific amount for rendering specific service or
performing specific work.
- drivers that are required to be at specific places at specific times are not field personnel
- in case of fishermen although performing non-agri work away from the office, the fact that they
have no choice but to remain on board the vessel, they are still under constant supervision by the
ER thru the vessels patron/master
members of the family who are dependent on him for support,
domestic helpers (house personnel hired by a ranking company official, a foreigner, but paid for by
the company itself, to maintain a staff house provided for the official is a regular EE)
persons in the personal service of another,
workers who are paid by results/per piece/per task - laborer/EE w/ no fixed salary, wag, or
renumeration but receiving a compensation from his ER an uncertain & variable amount depending
upon the work done or the result of said work (piece work), irrespective of the time employed

-employee must exist; existence is determined by law, not by contract. EER-EE Relationship is
not dependent upon the agreement of the parties. The characterization by law prevails over that in the
contract. The existence of an EER-EE relationship is not a matter of stipulation but a question of law
Elements of employment relationship (4-fold test)
1. selection and engagement of the employee
2. payment of wages
3. power of dismissal

4. employers power to control the employee with respect to the means and methods by which the
work is to be accomplished aka control test
EER-EE relationship may cover core/non-core activities of the EERs business.
The kind of work is not the definitive test of whether the worker is an EE or not.
Employer any person, natural or juridical, domestic or foreign, who carries on in the PH any trade,
business, industry, undertaking or activity of any kind and uses the services of another person who is
under his order as regards employment
Employee any person who performs services for an EER in w/c either or both mental & physical efforts
are used and who receives compensation for such services, where there is an EER-EE relationship
TESTS OF EENT Relship:
1. Right of Control Test where the person for whom the services are performed reserves a right to
control not only the end to be achieved but also the means to be sued in reaching such end.
Plus: the courts added the existing economic conditions prevailing bet the parties (like payrolls)
in determining the existence of EER-EE Relship.
Independent contractors can employ others to work & accomplish contemplated result w/o consent of
contractee, while EE cannot substitute another in his place w/o consent of his EER.
2. The Economic Dependence Test observes the need to consider the existing conditions bet the
parties
Best approach: Apply the two-tiered test involving:
1. the putative employers power to control the EE w/ respect to the means and methods by w/c the
work is to be accomplished; and
2. the underlying economic realities of the activity or relationship
a. the extent to w/c the services performed are an integral part of the employers business;
b. to the extent of the workers investment in equipment and facilities;
c. the nature and degree of control exercised by the employer;
d. the workers opportunity for profit and loss;
e. the amount of initiative, skill, judgment or foresight required for the success of the claimed
independent enterprise;
f. the permanency and duration of the relationship between the worker and the employer; and

g. the degree of dependency of the worker upon the employer for his continued employment in that
line of business
Standard of economic dependence whether the worker is dependent on the alleged employer for his
continued employment in that line of business
Evidence of employment
i. id card
ii. vouchers of salaries
iii. sss registration
iv. memorandum

Mode of Compensation not a test of EEnt status pakiao workers are considered employees as long as
the employer exercises control over the means by which such workers are to perform their work
(Zamudio vs NLRC)

the persons who work for it; even unregistered association may be deemed an employer LC defines an
employer as any person who acts in the interest of an employer in/directly; the law does not require an
employer to be registered in order to be considered as an employer (Orlando Farm Growers vs NLRC)
No employment relationship in a job contracting or independent contractor
Employer is free to regulate, accdg to his own discretion and judgment, all aspects of employment,
including hiring, work assignments, working methods, time, place and manner of work, tools to be used,
processes to be followed, supervision of workers, dismissal and recall of workers so long as the they are
exercised in good faith for the advancement of the employers interest and not for the purpose of
defeating or circumventing the rights of the employees under special laws or under valid agreements
GR: An employee is not a contractor; a contractor is not an employee.
GR: While EE-ER relationship exists bet a job contractor and the workers that he hires, no such
relationship exists bet those workers and the job contractee, the contractors client.
-only contractor serve as an agent of the true employer by merely recruiting & supplying
people (prohibited).Conditions of Employment laid down by law or by contract concluded individually
w/ an EE or collectively w/ a group

Employers have the right to exercise management prerogatives to strengthen his business
so long as they are exercised in Good Faith for the
advancement of his interest and not for the purpose of defeating/circumventing the Rights of the EES
a. May devise & implement new salary scales applicable only to future EES. (salary distortion)
Members/Officers of the Managerial Staff: Duties & Responsibilities
1. Their primary duty consists of the performance of work directly related to mgt policies of their ER;
2. They customarily & regularly exercise discretion and independent judgment;
3. They regularly & directly assist the managerial EE whose primary duty consists of the mgt of a
dept
of the establishment in w/c they are employed;
4. They execute, under gen supervision, work along specialized/technical lines requiring special
training,
experience or knowledge;
5. They execute, under gen supervision, special assignments and tasks; and they do not devote more
than 20% of their hours worked in a workweek to activities w/c are not directly & clearly related to
the performance of their work
ART. 83. Normal hours of work. - The normal hours of work of any employee shall not exceed eight (8)
hours a day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000) or
in hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office
hours for eight (8) hours a day, for five (5) days a week, exclusive of time for meals, except where
the exigencies of the service require that such personnel work for six (6) days or forty-eight (48)
hours, in which case, they shall be entitled to an additional compensation of at least thirty percent
(30%) of their regular wage for work on the sixth day. For purposes of this Article, "health
personnel" shall include resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and
all other hospital or clinic personnel.
Purpose of 8-hr Labor law not only to safeguard the health & welfare of the laborer/EE, but in a way
to minimize unemployment by forcing ERs, in cases where more than 8-hr operation is necessary, to
utilize different shifts to laborers/EEs working only for 8 hrs each
Part-time Work not prohibited. (What the law regulates is work exceeding 8hrs)
GR: Wage & benefits of a part-timer are in proportion to the number of hrs worked.
Work hrs of Health Personnel

Health personnel shall include, but not limited to, resident physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, lab technicians, paramedics, psychologists, midwives, attendants, and all
other hospital & clinic personnel like medical secretaries
Resident physicians customary practice to work for 24 hrs a day violates the limitations in Art 83. when
they are under training program/agreement bet the residents and the hospital accredited by the govt
Hospital EEs are entitled to a full weekly salary w/ 2 days off if they have completed the 40hr/5day
workweek (7days pay for 5 days work)
Health personnel in Govt service covered by RA 7305
12-hr Workshift with Overtime- through a contract freely entered into, workshift may exceed 8hrs w/
corresponding overtime pay.

ART. 84. Hours worked. - Hours worked shall include

(a) all time during which an employee is required 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.
Rest periods of short duration during working hours shall be counted as hours worked.
Principles in Determining Hours Wrked
1. All hrs are hrs worked w/c the EE is required to give to his ER, regardless of WON such hrs are
spent in productive labor or involve physical/mental exertion;
2. An EE need not leave the premises of the workplace in order that his rest period shall not be
counted, it being enough that he stops working, may rest completely and may leave his workplace,
to go elsewhere, whether w/in or outside the premises of his workplace;
3. If the work performed was necessary, or it benefited the ER, or the EE could not abandon his work
at the end of his normal working hrs because he had no replacement, all time spent for such work
shall be considered as hrs worked, if the work was w/in the knowledge of his ER/immediate
supervisor;
4. The time during w/c an EE is inactive by reason of interruptions in his work beyond his control
shall be considered time either if the imminence of the resumption of work requires the EEs
presence at the place of work or if the interval is too brief to be utilized effectively & gainfully in the
EEs own interest.

controlled or required by the employer and are pursued necessarily and primarily for the employers
benefit

working time if waiting is an integral part of his work or if the employee is required or engaged by an
employer to wait

workplace
takes place under
conditions substantially less desirable than would likely to exist at employees home

- not worktime EXCEPT

when employee receives an emergency call outside of his regular working hours and is required to
travel to his regular place of business or some other work site, all of the time spent in such travel is
working time
- travel that keeps an employee away from home overnight =worktime

worktime if:
it is outside employees regular working hours,
it is voluntary, and the employee does not perform productive work during such attendance

-time teachers are entitled to salary and emergency cost-of-living allowance during
semestral breaks (UPang Faculty Union vs UPANG)
need not leave the premises of the workplace in order that his rest period shall not be
counted; it is enough that he ceases to work

- Requisites for non-counted rest period

a. he ceases to work
b. may rest completely
c. leave or may leave at his will the spot where he actually stays while working, to go somewhere
else, whether w/in or outside the ship

normal hrs of ENT as provided

for in law, he bears the burden of proving his allegation w/ clear & satisfactory evidence

ART. 85. Meal periods. - Subject to such regulations as the Secretary of Labor may prescribe, it shall be
the duty of every employer to give his employees not less than sixty (60) minutes time-off for their
regular meals.
GR: not compensable Exc:
predominantly spent for employers benefit or where it is less than 60 minutes (but in no case shall
it be shorter than 20 minutes)
Continuous shifts
Exc to Exc:
shortened break is upon employees request Requisites:
1. agree in writing to a shortened meal break and waive overtime pay for such shortened period
2. no diminution in the salary and other fringe benefits
3. work does not involve strenuous physical exertion and are provided w/ coffee breaks
4. value of the benefits derived by the employees from the proposed work arrangement is equal to
or commensurate with the compensation due them
5. overtime pay of the employees will become due and demandable if ever they are permitted or
made to work beyond 4:30pm
6. effectivity of proposed working time arrangement shall be of temporary duration as determined
by DOLE
Note: The 8-hr work period does not include the meal break. EEs may leave the company premises as
long as they return to their posts on time.
ART. 86. Night shift differential. - Every employee shall be paid a night shift differential of not less than
ten percent (10%) of his regular wage for each hour of work performed between ten o clock in the
evening and six o clock in the morning.
-

NSD not waivable since it is founded on public policy

Burden of proof of payment rests upon the employer
given as premium for working at a time for sleep & restrt 82,
NSD is n/a to EEs of retail and service establishments regularly employing 5 employees and below
if work done from 10pm-6am is OT work, then the 10% night shift, differential should be based on
the OT rate

the receipt of OT pay will not preclude payment of NSD pay

ART. 87. Overtime work. - Work may be performed beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus
at least twenty-five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day
shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or
rest day plus at least thirty percent (30%) thereof.
Overtime Pay additional compensation for work performed beyond 8hrs w/in the workers 24-hr
workday regardless whether the work covers 2 calendar days
Basis cash wage only, w/o any deduction (excludes money received in different concepts and other
fringe benefits)
Rates:
1. OT on a regular work day at least 25% thereof
2. OT on a holiday or rest day at least 30% thereof
* CBA may stipulate higher OT pay rate
Actual Work Days as Divisor

PALEA & PAL Supervisors Assoc (PALSA), commenced an action v PAL in the CIR praying that the latter be
ordered to revise the method of computing the basic daily & hourly rates of its monthly salaried EEs and
necessarily to pay them their accrued salary differentials
PALs Formula:
monthly salary x 12/365 days in a yr = Basic daily rate
basic daily rate/8 Basic hourly rate
Proposed Formula:
Monthly salary x 12/actual working days = BDR
BDR/8 = BHR
Ruling: Paid Unworked days of a monthly-paid EE. ER may stipulate that EEs monthly salary constitutes
payment for all the days of the month including rest days & holidays if when converted into its daily
equivalent would still meet minimum wage = legal
How work day is counted

A day the 24-hr period w/c commences from the time the EE regularly starts to work
- regardless of the day of the week or hr of the day
- any work in excess of the 8hrs w/in the 24-hr pd is considered as OT regardless of whether the work
covers 2 calendar days
- any work in excess of 8 hrs not falling w/in the 24-hr pd is not considered as OT work
a. Broken Hrs of Work the minimum normal working hrs need not be continuous to constitute as the
legal working day of 8 hrs as long as the 8 hrs is w/in a work day
b. Work in Different Shifts in a Work day work in excess of 8hrs w/in a work day is considered as OT
regardless of whether this is performed in a work shift other than at w/c the EE regularly works
example:
-6am. He is asked to take a shift of another EE who is absent from 2pm-10pm (his
regular work day would be from 10pm-10pm)
2nd shift is considered OT because it is still w/in his work day
GR: An express instruction from the ER to the EE to render OT work is not required for the EE to be
entitled to OT pay. It is sufficient that the EE is permitted or suffered to work. Neither is an express
approval by a supervisor needed. EXC:
EE to be entitled to
compensation
prohibiting such work.
work could be done (i.e.
brownout, machine repair, lack of rawmats)
OT Work of Seamen whether or not the sailors are entitled to OT pay is not whether they were on
board and cannot leave ship beyond the regular 8 working hrs a day, but whether they actually rendered
service in excess of 8 hrs
OT work must be proven by factual & legal basis
Action to Recover Compensation
- estoppel & laches cannot be invoked against EEs bcoz that would be contrary to the spirit of the 8-hr
Labor Law, under w/c the laborers cannot waive their R to extra compensation
- OT pay in arrears retroacts to the date when services were actually rendered

GR: Waiver or quitclaim not a waiver of OT pay. Any stipulation in the contract that the laborer shall
work beyond the regular 8 hrs w/o addtl compensation for the extra hrs is contrary to law and null and
void
Waiver of OT Pay
GR: OT pay cannot be waived expressly or impliedly. Any contrary stipulation is null and void.

1. When the waiver is made in consideration of benefits & privileges w/c may be more than what will
accrue to them in OT pay; and
2. Compressed workweek (CWW) the number of work days is reduced but the number of work hrs in a
day is increased to more than 8, but no OT pay may be claimed.
Requisites of Compressed Workweek to be valid:
1. The scheme is expressly and voluntarily supported by majority of the EEs affected;
2. In firms using substances, or operating in conditions that are hazardous to health, a certification is
needed from an accredited safety org or the firms safety committee that work beyond 8hrs is w/in
the limits/levels of exposure set by DOLEs occupational safety & health standards;
3. The DOLE Regional Office is notified.
-waiver of overtime pay if the
following requisites are present:
1. agree in writing to work 9 hours a day from Monday to Friday
2. no diminution in the salary and other fringe benefits
3. value of the benefits that will accrue to the employees under the proposed work schedule is
more than or at least commensurate with or equal to the one-hour overtime pay that is due them
during weekdays
4. overtime pay of the employees will become due and demandable if ever they are permitted or
made to work on weekend
5. work does not involve strenuous physical exertion and are provided w/ coffee breaks
6. effectivity of proposed working time arrangement shall be of temporary duration as determined
by DOLE

Effects of a Compressed Workweek

1. Unless there is a favorable practice existing in the firm, work beyond 8hrs will not be compensable by
OT premium, provided the total number of hrs worked per day shall not exceed 12hrs. (Work performed
beyond 12hrs a day or 48hrs a week=OT)
2. EEs under a CWW scheme are entitled to meal periods of at least 60 minutes. The Right of EEs to
restday, holiday pay, rest day pay or leave in accdance w/ law/CBA/company practice shall not be
impaired.
3. Adoption of the CW scheme shall in no case result in diminution of existing benefits. Reversion to the
normal 8-hr work day shall not constitute diminution of benefits. (Reversion is considered a legitimate
exercise of mgt prerogative, provided that the ER shall give the EEs prior notice of such reversion w/in a
reasonable period of time.
* EE may validly waive the Right to OT under a CWW program, provided he did so voluntarily, w/ full
understanding of what he was doing and in consideration for the quit claim is credible & reasonable.
Note: EEs promoted from rank-and-file to supervisory lose their OT pay and other benefits under Art
82-96
Illustrations of OT Computations
1. Regular Workdays
Reg Basic Wage + 25% thereof
2. Legal or Regular Holidays
Holiday Wage Rate (200%) + 30% thereof
3. Rest Days or Special Holidays
Rest day/Special Holiday wage rate (130%) + 30% thereof
4.Scheduled Rest Day w/c is also a Special Holiday
Rest day & special holiday wage rate (150%) + 30% thereof
5.Scheduled rest day w/c is also a legal or regular holiday
Rest day & legal holiday wage rate (260%) + 30% thereof
6. Double holiday
Double holiday wage rate (400%) + 30% thereof
holidays fall on the same day and
he does not work (Law provides that he shall get his regular daily wage of each regular holiday)

Example: 100% of Araw ng Kagitingan, 100% Good Friday. If he works on that day, he gets 400%
OT pay integrated in Basic Salary (composite/package pay/all-inclusive salary)
not illegal nor unusual for executives or managers
- But for non-managerial EEs, there must be:
1.A clear written agreement
2.Agreed legal wage rate and OT pay computed separately are equal or higher than the separate
amounts legally due
FLEXIBLE WORK ARRANGEMENTS
- alternative work arrangements or schedules other than the traditional or standard work hrs, workdays
or workweek.
- ERs may adopt them after due consultation w/ EEs, taking into acct the adverse consequence of
the situation on the performance and financial condition of the company.
- Its effectivity and implementation shall be temporary.
- Should be threshed out by the ER and EE
- DOLE Reg Ofc must be notified prior to implementation
- In addition to CWW, the FWAs include:
1. Reduction of workdays where normal workdays per week are reduced but should not last for
more than 6 months
2. Rotation of workers where the EEs are rotated/alternately provided work w/in the workweek
3. Forced leave EEs are required to go on leave for several days or weeks, utilizing their leave
credits if there are any
4. Broken-time schedule the work schedule is not continuous but the number of hrs w/in the day
or week is not reduced
5. Flexi-holiday schedule EEs agree to avail themselves of the holidays at some other days,
provided that there is no diminution of existing benefits as a result of such arrangement

ART. 88. Undertime not offset by overtime. - Undertime work on any particular day shall not be offset
by overtime work on any other day. Permission given to the employee to go on leave on some other day
of the week shall not exempt the employer from paying the additional compensation required in this
Chapter.

- Whether on the same day or any other day is prohibited by law - Permission given to the EE to go on
leave on some other day of the week shall not exempt ER from paying the addtl compensation
Reason: EEs hourly rate is not equivalent to OT rate
Proper method: Deduct the Under Time from the accrued leave, if any
ART. 89. Emergency overtime work. - Any employee may be required by the employer to perform
overtime work in any of the following cases:
(a) When the country is at war or when any other national or local emergency has been declared by
the National Assembly or the Chief Executive;
(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public
safety due to an actual or impending emergency in the locality caused by serious accidents, fire,
flood, typhoon, earthquake, epidemic, or other disaster or calamity;
(c) When there is urgent work to be performed on machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or some other cause of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods; and
(e) Where the completion or continuation of the work started before the eighth hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional
compensation required in this Chapter.
ART. 90. Computation of additional compensation. - For purposes of computing overtime and other
additional remuneration as required by this Chapter, the "regular wage"of an employee shall include
the cash wage only, without deduction on account of facilities provided by the employer.
cash wage excludes noncash value of facilities
- if only cash wage is the basis of OT rate, it is unfair to the worker because as defined in Art 97, wage
includes the value of facilities, hence the value of facilities should not be excluded when computing OT
pay
-

Chapter II : WEEKLY REST PERIODS

ART. 91. Right to weekly rest day.

facilities)

(a) It shall be the duty of every employer, whether operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four (24) consecutive hours after every six (6)
consecutive normal work days.
(b) The 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 Secretary of Labor and
Employment may provide. However, the employer shall respect the preference of employees as to
their weekly rest day when such preference is based on religious grounds.

ART. 92. When employer may require work on a rest day. - The employer may require his employees to
work on any day:
(a) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent
danger to public safety;
(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid
serious loss which the employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measures;
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires continuous operations and the stoppage of work may
result in irreparable injury or loss to the employer; and
(f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary
of Labor and Employment.
Note: The failure to work during an EEs rest day does not justify disciplinary sanction of outright
dismissal, more so when justifiable grounds exist for the said failure.
Note: When an EE volunteers to work on his rest day under other circumstances, he may be allowed to
do so, provided he expresses such desire in writing and he is paid the addtl compensation for working
on his rest day
ART. 93. Compensation for rest day, Sunday or holiday work.
(a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an
additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be
entitled to such additional compensation for work performed on Sunday only when it is his
established rest day.

(b) When 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 (30%) of his regular wage for work performed on Sundays and holidays.
(c) Work performed on any special holiday shall be paid an additional compensation of at least thirty
percent (30%) of the regular wage of the employee. Where such holiday work falls on the
employees scheduled rest day, he shall be entitled to an additional compensation of at least
fifty per cent (50%) of his regular wage.
(d) Where the collective bargaining agreement or other applicable employment contract stipulates
the payment of a higher premium pay than that prescribed under this Article, the employer shall pay
such higher rate.
Premium pay or Differential compensation addtl compensation for work rendered by the EE on days
when normally he should not be working such as special holidays and weekly rest days
Note: This article does not prohibit a CBA stipulation for higher benefits
Formulas to Compute Wages on Holidays
1. For REGULAR HOLIDAYS
a. If it is an EEs regular workday
i. If unworked 100%
ii. If worked
1. 1st 8hrs 200%
2. excess of 8hrs Plus 30% of hourly rate of said day
b. if it is an EEs rest day
i. if unworked 100%
ii. if worked
1. 1st 8hrs plus 30% of 200%
2. excess of 8 hrs plus 30% of hourly rate of said day
2. For declared SPECIAL DAYS such as Special Non-Working Day, Special Public Holiday, Special National
Holiday and nationwide special days
a. If unworked no pay, unless there is a favorable company policy, practice or CBA granting
payment of wages on special days even if unworked
b. If worked

i. 1st 8hrs plus 30% of the daily rate of 100%

ii. excess of 8hrs plus 30% of hourly rate on said day
c. Falling on the EEs rest day and if worked
i. 1st 8hrs plus 50% of the daily rate of 100%
ii. excess of 8hrs plus 30% of hourly rate on said day
3. For those declared as SPECIAL WORKING HOLIDAY
- for work performed an EE is entitled only to his basic rate
List of Special Days
Proc. 459
A. Regular Holidays

B. Special (Non-working)Days

1. New Years Day

1. Black Saturday

2. Maundy Thursday

2. Ninoy Aquino Day

3. Good Friday

3. All Saints Day

4. Araw ng Kagitingan

4. Nov 2

5. Labor Day

5. Dec 24

6. Independence Day

6. Last Day of the Year

7. National Heroes Day

8. Bonifacio Day
9. Christmas Day
10. Rizal Day
11. Eidul Fitras - 1st day after
30-day fasting period
12. Eidul Adha regl holiday
in the ARMM

C. Special Holiday (for all

schools)
EDSA Revolution Anniversary

D. Local Holiday
Those declared by law or
ordinance

Chapter III : HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES

ART. 94. Right to holiday pay.
(a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and
service establishments regularly employing less than ten (10) workers;
(b) The employer may require an employee to work on any holiday but such employee shall be paid
a compensation equivalent to twice his regular rate; and
(c) As used in this Article, "holiday" includes: New Years Day, Maundy Thursday, Good Friday, the
ninth of April, the first of May, the twelfth of June, the fourth of July, the thirtieth of November, the
twenty-fifth and thirtieth of December and the day designated by law for holding a general election.
Holiday pay a days pay given by law to an EE even if he does not work on a regular holiday.
- It is limited to the regular/legal holidays listed by law.
- EE should not have been absent w/o pay on the working day preceding the regular holiday
Note: In addition to the Exceptions in Art 82, Holiday pay is n/a to EEs of retail and service
establishments regularly employing 10 workers or less
Rule on Compensability compensable whether worked or unworked subj to certain conditions.

y falling on a Sunday does not create an addtl oblig for the ER to pay extra, aside from the
usual holiday pay to its monthly paid EEs
Holiday pay of Monthly paid EEs
GR: for the company w/ a 6-day working schedule, the divisor 314 already means that the legal holidays
are included in the monthly pay of the EE. The divisor is arrived at by subtracting all Sundays from the
total number of calendar days in a yr
GR: for a company w/ a 5-day working schedule, the divisor 261 means that the holiday pay is already
included in the montly salary of the EE
Holiday pay of Teaching Personnel Paid per Lecture Hr
- not entitled to payment of holiday pay since they are paid by the hrs worked; and no class days
means no work for them- entitled to their regular hourly rate on days declared as special holidays or
when classes are called off or shortened on acct of typhoons, floods rallies, and the like
Double Holiday Pay (Araw ng Kagitingan & Good Friday on the same day)
1. 200% of the basic wage
a. entitled even if said holiday is unworked
b. to give EE only 100% would reduce the number of holidays under
the law
2. 400% if he worked on 2 regular holidays falling on the same day
3. 520% if he worked on 2 regular holidays falling on the same day and at
the same time falling on a scheduled rest day
Single Holiday Rule: provided that the EE
1. worked; 2. was on leave w/ pay; or 3. was on authorized absence on the day prior to the regular
holiday.
Successive Regular Holidays: to be entitled to 2 successive holidays, the EE must:
1. be present on the day immediately preceding the first holiday; or
2. be on leave w/ pay.
pay on the second regular
holiday
Effects of Business Closure on Holiday Pay

If regular holiday occurs during:

1. Temporary or periodic shutdown and temporary cessation of work of an establishment, the regular
holidays falling w/in the period shall be compensated.
2. Cessation of operation of an enterprise due to business reverses as authorized by the Sec of Labor,
the regular holiday may not be paid by ER

Muslim Holidays shall be observed in the provinces of Basilan, Lanao del Norte/ Sur, Maguindanao,
North Cotabato, Sultan Kudarat, Sulu, Tawi-tawi, Zamboanga del Norte/Sur, cities of Cotabato, Iligan,
Marawi, Pagadian, and Zamboanga, and in such other Muslim provinces and cities as may be created.
Upon proclamation by the President, Muslim holidays may also be officially observed in other provinces
and cities
PP 1198 - all private corps, offices, and agencies operating within the provinces and cities
enumerated herein shall observe the legal holidays as proclaimed, provided, that all Muslim employees
working outside of the Muslim provinces and cities shall be excused from work during the observance of
Muslim holidays as recognized by law, without diminution of salary during said period
Both Muslim and Christian employees within the Muslim areas may not report for work on the
designated Muslim holidays:
1. amun jadid (new year)
2. mauled-un-nabi (birthday of Mohammed)
3. lailatul isra wal mi rai (nocturnal journey and ascension of the Prophet Mohammed)
4. id-ul-fitr (hari raja pausa) end of fasting season
5. id-ul-adha (hari raha haji)
- a legal holiday falling on a Sunday creates no legal obligation for the employer to pay extra, aside from
the usual holiday pay, to its monthly-paid employees (Wellington Investment vs Trajano)
- double holiday: 2 regular holidays on same day
-if unworked covered employees are entitled to at least 200% of their basic wage even if said
holiday is unworked
- if worked entitled to compensation equivalent to at least 300% of his basic wage
- double holiday rule for monthly-paid employees
-if worked, additional 100% of regular salary

- successive regular holidays, an employee may not be paid for both holidays if he absents himself from
work on the day immediately preceding the 1st holiday, unless he works on the 1st holiday, in which
case, he is entitled to his holiday pay on the 2nd holiday
- holiday pay of hourly-paid faculty members during semestral break
-school is exempted from paying hourly paid faculty members their pay for regular
holidays, whether the same be during the regular semester or during semestral, Christmas, or Holy
Week vacations
-school must pay said faculty members their regular hourly rate on days declared as
special holidays or for some reason classes are called off or shortened for the hours they are supposed
to have taught, whether extension of class days be ordered or not; in case of extensions said faculty
mems shall likewise be paid their hourly rates should they teach during said extension (JRC vs NLRC)
-field personnel not entitled to holiday pay
ART. 95. Right to service incentive leave.
(a) Every employee who has rendered at least one year of service shall be entitled to a yearly service
incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit herein provided,
those enjoying vacation leave with pay of at least five days and those employed in establishments
regularly employing less than ten employees or in establishments exempted from granting this
benefit by the Secretary of Labor and Employment after considering the viability or financial
condition of such establishment.
(c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration
or any court or administrative action.

Concept: 5 days leave w/ pay for every EE who has rendered at least 1 yr of service
1 yr of service service w/in 12 months, whether continuous or broken, reckoned from the date the EE
started working including authorized absences and paid regular holidays unless the number of working
days in the establishment as a matter of practice/policy is less than 12 months
SIL is N/A to the ff:
1.EEs of the Govt
2. Domestic helpers and persons in the personal service of another;
3. Managerial EEs

4. Field personnel whose performance is unsupervised or those who are paid a fixed amt for
performing work irrespective of the time consumed in the performance thereof
5. Those already enjoying the said benefits
6. Those already enjoying vacation leave w/ pay for at least 5 days;
7. Those employed in establishments regularly employing less than 10 EEs
* EEs engaged on task/contract basis or paid purely commission basis are not automatically exempted
from the SEL unless they fall under the classification of field personnel.
Conversion to Monetary Equivalent
SIL is COMMUTABLE or convertible to cash if not used or exhausted at the end of the yr
Basis of conversion: the salary rate at the date of commutation
ALSO Entitled to SIL
1.EE illegally dismissed
2.Part-time workers
3.Piece-rate workers:
a. Working inside the premises of ER & thus are under direct supervision of the ER - entitled
b. Working outside the premises of the ER whose hours of work cannot be ascertained w/
reasonable certainty and thus are not under the direct supervision of the ER-not entitiled

Parental (Solo-parent) Leave

- not more than 7 working days every yr

- rendered to an EE who has rendered service at least 1yr
- no ER shall discriminate against any solo parent EE w/ respect to terms & conditions of ENT on acct of
his/her status
- a change in the status/circ of the parent claiming benefits under this Act such that he/she is no longer
alone w/ responsibility of parenthood shall terminate his/her eligibility for these benefits- not
convertible to cash unless otherwise agreed
requisites:
1. has rendered at least 1 year of service
2. has notified employer of the availment thereof w/n a reasonable period of time
3. has presented a Solo Parent ID to employer

Battered woman leave

- female EE who is a victim of violence is entitled to paid leave of 10 days in addition to other paid
leaves.
- Extendible when necessity arises
- EE has to submit certification from the punong brgy, kagawad, prosecutor or clerk of court than an
action under RA 9262 has been filed and is pending
Paternity leave available only for the 1st four deliveries of the legitimate spouse with whom the
husband is cohabiting; delivery includes childbirth, miscarriage, or abortion
- shall not exceed 7 calendar days for each delivery
- entitled to full pay
- non-commutation of benefits
Requisites:
1. he is an employee at the time of delivery of his child
2. he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage
3. he has applied for paternity leave
4. his wife has given birth or suffered a miscarriage