LABOR I

1. Labor Law includes all the rules of law governing the conditions under which persons may work
under the control of other person called employers. It also refers to labor standards and labor
relations laws governing hours of work, weekly rest periods, minimum wage rates, unfair labor
practices, strikes and lockouts,that are designed to look more on the immediate results of
employer-employee relationship. It is the body of rules and principles which govern the relation
between labor and management in the collective, as distinguished from the principles determining
the rights and liabilities consequent to the individual relationship of the employer and employees.
2. Classification of Labor Statutes:
a)
Protective legislations are for the protection against discrimination of the weaker party,
e.g., laws for the protection of women and child-labor laws
(b)
Welfare or social legislations are those intended to remove or reduce the insecurity of
the workers, e.g., laws on social security
(c)
Diplomatic legislations are designed to settle disputes through peaceful modes, e.g.,
laws providing for conciliation, mediation, grievance machinery or voluntary arbitration
(d)
Administrative legislations are the laws creating local bodies such as DOLE, NLRC,
POEA, TESDA
(e)
Labor relations legislations are more on workers rights to self-organization or
negotiation activities
(f)
Labor standards legislations provide for minimum requirements as to wages, hours of
work, COLA, and other monetary or welfare benefits)
3. Social legislation is a law governing employer-employee relationship while the latter is not at
work due to hazards beyond his control arising from employment which immobilize him from
working. It includes laws that provide particular kinds of protection or benefits to society or
segments thereof in furtherance of social justice, e.g., retirement law
4. Employer includes any person acting in the interest of an employer, directly or indirectly. The
term shall not include any labor organization or any of its officers or agents except when acting as
employer. Furthermore, an employer is any person or entity that employs the services of others;
one for whom work and who pays their wages of salaries; refers to the enterprise where the LO
operates or seeks to operate.
5. Employee includes any person in the employ of an employer. The term shall not be limited to the
employees of a particular employer, unless the Code so explicitly states. It shall include any
individual whose work has ceased as a result of or in connection with any current labor dispute or
because of any unfair labor practice if he has not obtained any other substantially equivalent and
regular employment. He is also one who has been dismissed from work but the legality of
dismissal is being contested in a forum of appropriate jurisdiction
6. The employer-employee relationship is the jurisdictional foundation for a compensation claim.
An employee can enjoy all the rights and benefits under the Labor Code if such relationship
exists. It is created by an employment contract, whether express or implied. Such contract may
be proven by the hiring by competent persons either by the employer himself or through an
authorized representative or agent.
7. In determining the existence of an employer-employee relationship, the elements to be generally
considered are as follows: a) selection and engagement of the employee; b) the payment of
wages; c) the power of dismissal; and d) the employers power to control the employee with
respect to the means and method by-which the work is to be accomplished.
8.

Among the elements stated in the previous number, the power of control is the most important
factor in determining the existence of an employer-employee relationship. The employer need not
actually exercise this power. It is enough that the employer retains the right to exercise this
power, as it may deem necessary or appropriate. (Gregorio V. Tongko v. The Manufacturers Life
Insurance Co. (Phils.), Inc. and Renato A. Vergel de Dios)

9. The form of control that indicates employer-employee relationship is that rules imposed by the
hiring party on the hired party which interferes with the means and methods of accomplishing the
assigned tasks.
Not every form of control is indicative of employer-employee relationship. A person who
performs work for another and is subjected to its rules, regulations, and code of ethics does not
necessarily become an employee. As long as the level of control does not interfere with the means
and methods of accomplishing the assigned tasks, the rules imposed by the hiring party on the
hired party do not amount to the labor law concept of control that is indicative of employeremployee relationship. (Royale homes Marketing Corp. vs. Fidel P. Alcantara)
10. None. There is no particular form of evidence is required to prove the existence of an employeremployee relationship. Any competent and relevant evidence to prove the relationship may be
admitted. For, if only documentary evidence would be required to show that relationship, no
scheming employer would ever be brought before the bar of justice, as no employer would wish
to come out with any trace of the illegality he has authored considering that it should take much
weightier proof to invalidate a written instrument. (Tenazas, Francisco and Endraca vs. R.
Villegas Taxi Transport and Romualdo Villegas)
11. Yes. It is stated under Art. XIII Sec. 3 of the Philippine Constitution that:
The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable returns
to investments, and to expansion and growth.
12. The State must afford protection to labor because as a factor of production, it is weak and helpless
and vulnerable to trouble without the necessary succor from the State. In its exercise of police
power, the State should enact wholesome and reasonable laws to preclude a feeling of discontent
which may lead to violent and bloody upheavals among workers who constitute the bulk of the
population of the State (Abalos vs. POEA). The constitutional mandate to afford full protection to
labor underscores the policy of social justice to accommodate the interests of the working class
on the humane justification that those who have less in life shall have more in law (PLDT v.
NLRC, G.R. No. 111933, July 23, 1997). The State is bound under the Constitution to afford full
protection to Labor; and when conflicting interests collide and they are to be weighed on the
scales of social justice, the law should accord more sympathy and compassion to the less
privileged working man (Fuentes v. NLRC, 266 SCRA 24, 1997). However, it should be borne in
mind that social justice ceases to be an effective instrument for the equalization of the social and
economic forces by the State when it is used to shield wrongdoing (Corazan Jamer v. NLRC,
278 SCRA 632, 1997).
13. No. Protection of Labor does not mean destruction of employer. Not all labor cases may be
automatically decided in favor of the worker. Management also has rights which are entitled to
recognition and protection; justice must be dispensed according to facts and the law; and social
justice is not designed to destroy or oppress the employer.
The law in protecting the rights of the employees authorizes neither oppression nor selfdestruction of the employer. It should be made clear that when the law tilts the scale of justice in
favor of labor, it is but a recognition of the inherent economic inequality between labor and
management. Never should the scale be so tilted if the result is an injustice to the employer. (Phil.
Geothermal Inc. vs. NLRC, 1994) This Court held that the employers right to conduct the affairs
of his business according to its own discretion and judgment, is well-recognized. An employer
has a free reign and enjoys wide latitude of discretion to regulate all aspects of employment. This
is a management prerogative, where the free will of management to conduct its own affairs to
achieve its purpose takes form. (Torreda vs. Toshiba, 2007) But, like other rights, there are limits
thereto. The managerial prerogative to transfer personnel must be exercised without grave abuse
of discretion, bearing in mind the basic elements of justice and fair play. Having the right should
not be confused with the manner in which the right is exercised. (Tinio vs. CA, 2007) This Court

declared that it recognizes the exercise of management prerogatives and it often declines to
interfere with the legitimate business decisions of the employer. However, as expressed in PAL v
NLRC, the privilege is not absolute, but subject to exceptions. One of these exceptions is when
the Secretary of Labor assumes jurisdiction over labor disputes involving industries indispensable
to the national interest under Article 263(g).

14. The Labor Code was enacted on May 1, 1974, Labor Day, by Ferdinand Marcos exercising his
extant legislative power. It took effect six months later on November 1, 1974. It prescribes the
rules for hiring and termination of private employees; the conditions of work including maximum
work hours and overtime; employee benefits such as holiday pay, thirteenth month pay and
retirement pay; and the guidelines in the organization and membership in labor unions as well as
in collective bargaining.

15. According to Article I (Name of Decree) of the Labor Code states that: This Decree shall be
known as the "Labor Code of the Philippines". The Labor Code is defined as the charter of
human rights and bill of obligations for every worker. It lays down the minimum terms,
conditions, and benefits of employment that employers must provide or comply with and to
which the employees are entitled as a matter of right. It codifies all existing labor and social
legislations at the time it is enacted.
16. According to Article 2 (Date of effectivity ) of the Labor Code: This Code shall take effect six (6)
months after its promulgation. The Labor Code took effect on November 1, 1974 after the lapse
of 6-month transition period.

17. There are seven books composing the Labor Code, as follows:
Book I Pre-Employment
Book II Human Resources Development
Book III Conditions of Employment
Book IV Health, Safety, and Social Welfare Benefits
Book V Labor Relations
Book VI Post-Employment
Book VII - Transitory Final Provisions
18. The basic policy of the State as declared in Article 3 (Declaration of Basic Policy) of the Labor
Code: The State shall afford protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work.
19. Yes. The policy of the State in protecting labor means favouring the labor sector. It is supported
by Article 4 (Construction in favor of labor) of the Labor Code stating that: All doubts in the
implementation and interpretation of the provisions of this Code, including its implementing rules
and regulations, shall be resolved in favor of labor. Given also by the the bias of the Constitution,
Labor Code and Civil Code in favor of labor, any doubt as to the existence of such relationship
occasioned by the lack of evidence should be resolved in favor of petitioner and of
employment. (Gregorio V. Tongko v. The Manuf)
20. Yes. According to Article 6 (Applicability) of the Labor Code: All rights and 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. (As amended by Presidential Decree No. 570A, November 1, 1974)
21. No, government employees are not covered by the Labor Code, they are included in the
exceptions. Under Article 82 of the Labor Code, the provisions of the said Code 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.
22. 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, 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.
23. Persons who can engage in or undertake recruitment and placement:
Under Article 13 (b) of the Labor Code, it states that: 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; and
Under Article 16 of Labor Code, it states that 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.
24. Only those with authority or license can engage in recruitment and placement activities, because
under Art. 25 of the Labor Code: 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. Also, under Art. 27
of the same code: Only Filipino citizens or corporations, partnerships or entities at least seventyfive 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. And Art. 28 states that: 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. Lastly, Article 39 doubles the penalty for violations of this provision by nonlicensed persons stating that: 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;
25. Authority and License
Authority means a document issued by the Department of Labor authorizing a person or
association to engage in recruitment and placement activities as a private recruitment entity;
while license means a document issued by the Department of Labor authorizing a person or entity
to operate a private employment agency.
26. Definition:
Contractual employee includes one employed by a contractor or subcontractor to perform or
complete a job, work or service pursuant to an arrangement between the latter and a principal.
Name Hire are those individual workers who are able to secure contracts for overseas
employment on their own efforts and representations without the assistance or participation of
any agency. Their hiring, nonetheless, shall pass through the POEA for processing purposes.
(Part III, Rule III, POEA Rules Governing Overseas employment as amended in 2002)
Manning agency refers to any person, partnership or corporation duly licensed by the Secretary
or his/her duly authorized representative to recruit and deploy seafarers for maritime
employment.
Placement fee shall refer to the amount charged by a private employment agency from a worker
for its recruitment and placement services, as prescribed by the Secretary.

Service fee shall refer to the amount charged by a licensee from its foreign principal as payment
for actual services rendered in relation to the recruitment and placement of workers.
Overseas employment shall refer to employment of a Filipino worker outside the Philippines
covered by a valid contract.
Valid Employment Contract shall refer to an individual written agreement between the foreign
principal/employer and the worker which is based on the master employment contract approved
by the Administration.
Principal shall refer to an individual written agreement between the foreign principal/employer
and the worker which is based on the master employment contract approved by the
Administration. It also refers to any employer who puts out or farms out a job, service or work to
a contractor or subcontractor.
27. No, a foreign-based employer or principal cannot hire a Filipino worker overseas employment
without the intervention of the government or private entities authorized to engage in recruitment
and placement. Article 18 of the Labor Code provides:
Ban on direct hiring. - No employer may hire a Filipino worker for overseas employment except
through the Boards or entities authorized by the Secretary of Labor. Direct-hiring by members of
the diplomatic organizations, international organizations and such other employers as may be
allowed by the Secretary of Labor is exempted from this provision.
28. The Department of Labor and Employment is the government entity charged with the
implementation and enforcement of the laws in recruitment and placement.
29. In case of illegal termination of the employment of the overseas Filipino workers, the Migrant
Workers Acts(R.A. No. 8042) grants relief. Under Section 10 of R.A. No. 8042, it provides for
money claims in cases of unjust termination of employment contracts. The dispositive portion of
which, reads as follows:
In case of termination of overseas employment without just, valid or authorized cause as defined
by law or contract, the workers shall be entitled to the full reimbursement of his placement fee
with interest of twelve percent (12%) per annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of the unexpired term, whichever is
less.
30. Responsibility for the repatriation of the overseas Filipino workers
Under Article 15 of the R.A. No. 8042 (Migrant Workers and Overseas Filipino Act of 1995)
(par.1), it states that the repatriation of the worker and the transport of his personal belongings
shall be the primary responsibility of the agency which recruited or deployed the worker
overseas. All costs attendant to repatriation shall be borne by or charged to the agency concerned
and/or its principal. Likewise, the repatriation of remains and transport of the personal belongings
of a deceased worker and all costs attendant thereto shall be borne by the principal and/or local
agency. However, in cases where the termination of employment is due solely to the fault of the
worker, the principal/employer or agency shall not in any manner be responsible for the
repatriation of the former and/or his belongings.
31. Government Agency responsible in case of Repatriation
Under Article 15 of the R.A. No. 8042 (Migrant Workers and Overseas Filipino Act of 1995)
(par.2), it states that the Overseas Workers Welfare Administration (OWWA), in coordination with
appropriate international agencies, shall undertake the repatriation of workers in cases of war,
epidemic, disasters or calamities, natural or man-made, and other similar events without prejudice
to reimbursement by the responsible principal or agency. However, in cases where the principal
or recruitment agency cannot be identified, all costs attendant to repatriation shall be borne by the
OWWA.

32. Yes, citizenship qualification for a person or entity engaged in the recruitment and placement of
workers. Under Article 27 of Labor Code, it states that 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.
33. Article 34 of the Labor Code provides for the prohibited practices in connection with Recruitment
and Placement stating that:
It shall be unlawful for any individual, entity, licensee, or holder of authority:
a. To charge or accept, directly or indirectly, any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of
Labor, or to make a worker pay any amount greater than that actually
received by him as a loan or advance;
b. To furnish or publish any false notice or information or document in relation
to recruitment or employment;
c. To give any false notice, testimony, information or document or commit any
act of misrepresentation for the purpose of securing a license or authority
under this Code.
d. To induce or attempt to induce a worker already employed to quit his
employment in order to offer him to another unless the transfer is designed to
liberate the worker from oppressive terms and conditions of employment;
e. To influence or to attempt to influence any person or entity not to employ
any worker who has not applied for employment through his agency;
f.

To engage in the recruitment or placement of workers in jobs harmful to

public health or morality or to the dignity of the Republic of the Philippines;

g. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by

his duly authorized representatives;
h. To fail to file reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures
and such other matters or information as may be required by the Secretary of
Labor;
i.

To substitute or alter employment contracts approved and verified by the

Department of Labor from the time of actual signing thereof by the parties up
to and including the periods of expiration of the same without the approval of
the Secretary of Labor;

j.

To become an officer or member of the Board of any corporation engaged in

travel agency or to be engaged directly or indirectly in the management of a
travel agency; and

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.
34. Article 38 (b) of Labor Code states that:
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.

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.
35. The following are the elements of illegal recruitment as a criminal offense, to wit:
a) The offender undertakes any of the activities within the meaning of
"recruitment and placement" under Article 13(b) of the Labor Code, or any of
the prohibited practices enumerated under Article 34 of the Labor Code (now
Section 6 of Republic Act No. 8042)
b) The offender has no valid license or authority required by law to enable him
to lawfully engage in recruitment and placement of workers.
c) In the case of illegal recruitment in large scale, a third element is added: that
the offender commits any of the acts of recruitment and placement against
three or more persons, individually or as a group.