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LABOR LAW Parties enjoined not to act oppressively

against each other or impair the

WHAT IS LABOR? interest or convenience of the public.
Refers to physical or mental exertion In person, involves the rendition of
necessary to produce goods. personal service of employee; partakes
In a broader concept, it may include of master and servant relationship.
labor force who are employed or those
who are able and willing to work but are
temporarily or involuntarily unemployed.
physical toil although it does not
It prescribes the terms and conditions of
necessarily exclude the application of
employment as affecting wages or monetary
skill, thus there is skilled and unskilled
benefits, hours of work, cost of living
allowances, and occupational health, safety
and welfare of the workers.
which sets out the minimum terms,
Includes all the rules of law governing
conditions, and
the conditions under which persons may
benefits of employment that employers must
work under the control of other person
provide or comply with and to which
called employers.
employees are entitled as a matter of legal
consists of statutes, regulations and
governing the relations between capital WHAT IS LABOR LEGISLATION?
and labor To protect the worker from the mighty
by providing for certain employment and to correct the injustices that are
standards and a legal framework inherent in employer-employee
for negotiating, adjusting and relationship.
administering those standards and other To provide set of restrictions upon the
incidents of worker in his relationship with the
employment. employer and vice versa to maintain
industrial peace and harmony; thereby
WHAT IS THE ELEMENTS OF EMPLOYER- promoting industrial democracy.
1. the selection and engagement of the Limitations of Labor Legislation
employee 1. Non-impairment of contracts
2. the payment of wages 2. Non-delegation of legislative power
3. the power of dismissal 3. Constitutional provision against
4. the employers power to control the involuntary servitude
employee with respect to the means 4.Equal protection of the law
and methods by which the work is to be
Most important index of existence of E-E FROM LABOR LEGISLATION.
Labor legislation consists of statutes,
Employer regulations, and jurisprudence governing the
One for whom employees work in relations between capital and labor, by
consideration of wages or salaries. providing for certain employment standards
Natural or Juridical person. and a legal framework for negotiating,
Employee adjusting and administering those standards
One who works for an employer; a and other incidents of employment.
person working for salary or wages;
any person in the service of another This definition provides the divisions of labor
under a contract for hire, express or legislation i.e. labor standards and labor
implied, oral or written. Always a relations. These two are not mutually
natural person. exclusive but rather, they complement each
Employee-Employer Relationship other.
Contractual in character; by
agreement. For academic purposes though, distinction
Impressed with public interest; labor should be made between labor standards and
contracts yield to the common good. labor relations. But in actuality, they overlap
Subject to special laws on labor unions, each other such that the grievance machinery
is a labor relations matter but very often the
collective bargaining, strikes and
subject of the complaint is labor standards
lockouts, closed shop, wages and
such as unpaid overtime work or a disciplinary
working conditions, hours of labor and
similar subjects.
Social legislation: provides particular kinds and benefits as may be provided by law.
of (Sec. 3, XIII).
protection or benefits to society or segments
thereof Other provisions in the Constitution:
in furtherance of social justice. 1. Right to form unions, associations,
Labor laws are necessarily social legislation. societies for purposes not contrary to
But to law.
differentiate, labor laws directly affect 2. Right to self-organization shall not be
employment denied to government employees.
while social legislation governs effects of 3. Regular farmworkers shall have the
employment. right to own directly or collectively the
Labor laws are social legislation but not all lands they till.
social 4. The State shall by law and for common
legislation are labor laws. good, undertake in cooperation with the
private sector a continuing program of
urban land reform and housing.
5. The State shall protect working women
WHAT ARE THE SOURCES OF LABOE LAW? by providing safe and healthful working
1. Primary conditions taking into account their
a. Philippine Constitution maternal functions.
b. Legislations passed by Congress 6. Labor is entitled to seats allotted to
c. Decisions of the Supreme Court party list representatives
d. Implementing Rules and Regulations of 7. The State shall promote
DOLE industrialization and full employment
e. Decisions of quasi-judicial bodies such based on sound agricultural
as NLRC development and agrarian reform.
f. ILO conventions (International 8. Congress shall create an agency to
LaborOrganization) promote the viability and growth of
2. Auxiliary 9. The Govt shall increase salary scales of
a. Opinions of the Secretary of Labor the other officials and employees of the
and employment National Government.
b. Opinions of the secretary of Justice 10.Career civil service employees shall be
c. Reports, debates, hearings made and entitled to appropriate separation pay
conducted by Congress and to retirement and other benefits
d. Labor law reviews under existing laws.
e. Labor law and social legislation
textbooks The 1987 Philippine Constitution, the
f. Opinions of legal luminaries supreme law of the land, mandates the
g. Foreign laws and decisions protection of labor and the promotion of
their welfare. It provides the
WHAT ARE THE CONTITUTIONAL fundamental labor standards and labor
MANDATES REGARDING TO LABOR LAW? relations rights of the employees. The
constitutional provisions on labor are
The State shall afford full protection to labor provided under Articles II, III, IX-B, and
and this XIII as follows:
is found in the 1935, 1973, and 1987
Constitution. The Article II, DECLARATION OF
State affirms labor as a primary social PRINCIPLES AND STATE POLICIES
force thus, it shall protect the right of the Section 9. The State shall promote a
workers just and dynamic social order that will
and promote their welfare. ensure the prosperity and
independence of the nation and free the
Basic rights of workers guaranteed by the people from poverty through policies
constitution: that provide adequate social services,
1. Right to organize themselves promote full employment, a rising
2. Conduct collective bargaining or standard of living, and an improved
negotiation with management quality of life for all.
3. Engage in peaceful concerted activities,
including to strike in accordance with Section 10. The State shall promote
law social justice in all phases of national
4. Enjoy security of tenure development.
5. Work under humane conditions
6. Receive a living wage Section 18. The State affirms labor as
7. Participate in policy and decision- a primary social economic force. It shall
making processes affecting their rights
protect the rights of workers and
promote their welfare. The State shall regulate the relations between
workers and employers, recognizing the right
Section 20. The State recognizes the of labor to its just share in the fruits of
indispensable role of the private sector, production and the right of enterprises to
encourages private enterprise, and reasonable returns to investments, and to
provides incentives to needed expansion and growth.
Note: State may regulate the relations
ARTICLE III, BILL OF RIGHTS between workers and employers. However,
this does not include the workers right to
Section 1. No person shall be deprived participate in the management of the
of life, liberty, or property without due enterprise; this is employers prerogative.
process of law, nor shall any person be
denied the equal protection of the laws. Section 14. The State shall protect working
women by providing safe and healthful
Section 8. The right of the people, working conditions, taking into account their
including those employed in the public maternal functions, and such facilities and
and private sectors, to form unions, opportunities that will enhance their welfare
associations, or societies for purposes and enable them to realize their full potential
not contrary to law shall not be in the service of the nation.
Section 2. cases should be determined on the merits in
order to give the parties full opportunity to
3. No officer or employee of the civil ventilate their causes and defenses, rather
service shall be removed or suspended than on technicalities or procedural
except for cause provided by law. imperfections. In that way, the ends of justice
would be served better. Rules of procedure are
5. The right to self-organization shall mere tools designed to expedite the decision
not be denied to government or resolution of cases and other matters
employees. pending in court. A strict and rigid application
of rules, resulting in technicalities that tend to
6. Temporary employees of the frustrate rather than promote substantial
Government shall be given such justice, must be avoided. In fact, Section 6 of
protection as may be provided by law. Rule 1 states that the Rules shall be liberally
construed in order to promote their objective
ARTICLE XIII, SOCIAL JUSTICE AND of ensuring the just, speedy and inexpensive
HUMAN RIGHTS disposition of every action and proceeding
Section 3. The State shall afford full FAMILY FOODS MANUFACTURING CO. LTD. G.R.
protection to labor, local and overseas, No. 180458, July 30, 2009, Third Division,
organized and unorganized, and promote full Nachura, J.).
employment and equality of employment
opportunities for all. Corollary to this, it is settled that liberal
construction of the rules may be invoked in
It shall guarantee the rights of all workers to situations where there may be some
self-organization, collective bargaining and excusable formal deficiency or error in a
negotiations, and peaceful concerted pleading, provided that the same does not
activities, including the right to strike in subvert the essence of the proceeding and
accordance with law. They shall be entitled to connotes at least a reasonable attempt at
security of tenure, humane conditions of work, compliance with the rules. After all, rules of
and a living wage. They shall also participate procedure are not to be applied in a very rigid,
in policy and decision-making processes technical sense; they are used only to help
affecting their rights and benefits as may be secure substantial justice (MEDISERV, INC. vs.
provided by law. COURT OF APPEALS, G.R. No. 161368, April 5,
2010, First Division, Villarama, Jr., J.)
The State shall promote the principle of
shared responsibility between workers and Thus, in Republic vs. Jennifer
employers and the preferential use of Cagandahan, G.R. No. 166676, September 12,
voluntary modes in settling disputes, including 2008, 2nd Division, the Supreme Court agreed
conciliation, and shall enforce their mutual that there is substantial compliance with Rule
compliance therewith to foster industrial 108 (which requires the civil registrar and all
peace. persons who have or claim any interest which
would be affected by the Petition shall be Every employee shall be assured
made parties to the proceedings) when security of tenure. No employee can be
respondent furnished a copy of the petition to dismissed from work except for a just or
the local civil registrar. The High Court authorized cause, and only after due process.
invoked Section 6, Rule 1 of the Rules of Court
which states that courts shall construe the Just cause refers to any wrongdoing
Rules liberally to promote their objectives of committed by an employee; authorized cause
securing to the parties a just, speedy and refers to economic circumstances that are not
inexpensive disposition of the matters brought the employees fault.
before it.
WHAT IS COMPASSIONATE JUSTICE? An employee must be paid their wages
Disregarding of rigid rules and giving due for all hours worked. If their work hours fall
weight to all the equities of the case. between 10:00 p.m. and 6:00 a.m., they are
Relevant in dismissal of workers entitled to night shift pay in addition to their
social justice policy mandates a pay for regular work hours. If they work over
compassionate attitude toward working eight hours a day, they are entitled to
class in its relation to management. In overtime pay.
calling for the protection to labor, the
Constitution does not condone 4. WEEKLY REST DAY
wrongdoing by the employee, it A day-off of 24 consecutive hours after
nevertheless urges a moderation of the six (6) days of work should be scheduled by
sanctions that may be applied to him in the employer upon consultation with the
the light of the many disadvantages that workers.
weigh heavily on him like an albatross on
Wage is the amount paid to an
WHAT ARE THE RIGHT OF EMPLOYEES? employee in exchange for to the service that
Constitutional Rights of Workers they rendered to their employer. Wage may be
1. Right to self-organization fixed for a given period.
2. Right to collective bargaining
3. Right to security of tenure 6. PAYMENT OF WAGES
4. Right to just an humane conditions of Wages should be paid directly to the
work employee in cash, legal tender, or through a
5. Right to collective negotiations bank.
6. Right to peaceful concerted activities
7. Right to strike Wages shall be given not less than once
8. Right to a living wage every two weeks or twice within a month at
9. Right to participate in policy and intervals not exceeding 16 days.
decision making
10. Right to just share in the fruits of 7. FEMALE EMPLOYEES
production Women are prohibited from engaging in
night work unless the work is allowed by the
following rules: industrial undertakings from
10 p.m. to 6 a.m., commercial/non-industrial
undertakings from 12 m.n. to 6 a.m., or
agricultural takings at night provided that she
has had nine consecutive hours of rest.
Welfare facilities, such as separate
dressing rooms and lavatories, must be
installed at the workplace.
Rights of employees
The Bureau of Working Conditions, a staff
department of the Department of Labor and
Employment, compiled a list of Basic Rights
The minimum employment age is 15
that every worker is entitled to. These rights
years of age. Any worker below 15 years of
ensure the safety and health of all workers.
age should be directly under the sole
responsibility of parents or guardians provided
that work does not interfere with the childs
The State shall protect labor, promote
schooling or development.
employment, provide equal work opportunity
The minimum age of employment is 18
regardless of gender, race, or creed; and
years for hazardous jobs, and 15 years for
regulate relations between employees and
non-hazardous jobs. Hazardous jobs are
Employers must provide workers with a syndicate when it is committed by a group
every kind of on-the-job protection against of three (3) or more persons conspiring or
injury, sickness or death through safe and confederating with one another. Illegal
healthful working conditions. recruitment is committed in a large scale if
committed against three (3) or more persons.
Every worker has the right to self- recruitment committed by a licensee or
organization, i.e., to form or to join any holder of authority against one or two
legitimate workers union, free from persons only.
interference of their employer or the
government. All workers may join a union for 2. NON-LICENSEE illegal recruitment
the purpose of collective bargaining and is committed by any person who is neither a
eligible for union membership on the first day licensee nor a holder of authority.
of their employment. Non-licensee or non-holder of authority
[It is a] corporation or entity which has not
Collective bargaining is a process been issued a valid license or authority to
between two parties, namely the employer engage in recruitment and placement by the
and the union, where the terms and conditions Secretary of Labor and Employment, or whose
of employment are fixed and agreed upon. In license or authority has been suspended,
collective bargaining, the two parties also revoked, or cancelled by the POEA or
decide upon a method for resolving Secretary of Labor.
grievances. Collective bargaining results in a
contract called a Collective Bargaining 3. SYNDICATED illegal recruitment
Agreement (CBA). committed out by a group of three (3) or more
persons in conspiracy or
WHAT ARE THE ELEMENTS OF ILLEGAL confederation with one another;
The crime of illegal recruitment is 4. LARGE SCALE or QUALIFIED illegal
committed when two elements concur, recruitment committed against three (3) or
namely: more persons, individually or as a group
1. the offender has no valid license despite the lack of the necessary
or authority required by law to license from the POEA.
enable one to lawfully engage in
recruitment and placement of WHAT ARE THE PRINCIPLE OF SOCIAL
workers; and JUSTICE?
2. he undertakes either any activity
within the meaning of Social justice is neither communism,
"recruitment and placement" nor despotism, nor atomism, nor
defined under Article 13 (b), or anarchy, but the humanization of laws
any prohibited practices and the equalization of social and
enumerated under Article 34 of economic forces by the State so that
the Labor Code. justice in its rational and objectively
secular conception may at least be
TWO KINDS OF ILLEGAL RECRUITMENT approximated. Social justice means the
The types of illegal recruitment under promotion of the welfare of all the
the Labor Code are the following: people, the adoption by the Government
of measures calculated to ensure
1. Simple illegal recruitment economic stability of all the component
2. Illegal recruitment considered as an elements of society, through the
offense involving economic sabotage maintenance of a proper economic and
which can be further classified to: social equilibrium in the interrelations of
a. Illegal recruitment committed by a the members of the community,
syndicate; constitutionally, through the adoption of
b. Illegal recruitment committed in a measures legally justifiable, or extra
large scale. constitutionally,
through the exercise of powers
Simple illegal recruitment or illegal underlying the existence of all
recruitment covers any recruitment activity by governments on the time-honored
non-licenses or non-holders of authority. principle of salus populi est supremo
It includes the commission of prohibited lex. (Calalang vs. Williams)
practices by licenses or holders of authority.
- It guarantees equality of opportunity,
Illegal recruitment when committed by a equality of political
syndicate or in large scale shall be rights, equality before the law, equality of
considered an offense involving economic values given and
sabotage. Illegal recruitment is committed by
received, equitable sharing of the social and Department of Labor and Employment
material goods and basis of efforts exerted in National Labor Relations Commission
their production. Does not champion division Philippine Overseas Employment
of property or equality of economic status. Administration
Cannot be used to trample rights of others.
National Wages and Productivity
- Not intended to countenance the
Employees Compensation Commission
wrongdoings by the
underprivileged. May mitigate penalty but not Social Security Commission
condone Overseas Workers Welfare
offense. Administration
Government Services and Insurance


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. 570-A, November
1, 1974)

ARTICLE 1. NAME OF DECREE. This Decree Four-Fold Test/ Economic Reality Test
shall be known as the "Labor Code of the 1. Manner of selection and engagement
Philippines". of the putative employee
2. Mode of payment of wages
The Labor Code is defined as the charter of 3. Presence or absence of the power of
human rights and bill of obligations for every dismissal
worker 4. Presence or absence of power to
control the putative employees
Code shall take effect six (6) months after its
promulgation. Hiring by competent persons
a. If it is done by an agent with actual
The Labor Code took effect on November 1, authority
1974 after the lapse of 6-month transition b. If it is done by an agent with
period. apparent authority
c. If it is done without authority, but
ARTICLE 3. DECLARATION OF BASIC subsequently ratified either expressly or
POLICY. The State shall afford protection to impliedly
labor, promote full employment, ensure equal
work opportunities regardless of sex, race or Most Decisive Control Test
creed and regulate the relations between An employment relation obtains
workers and employers. The State shall where work is performed or services rendered
assure the rights of workers to self- under the control and supervision of the party
organization, collective bargaining, security of contracting for the service, not only as to
tenure, and just and humane conditions of result of the work but also the manner and
work. details of performance.
Power of control refers merely to the
ARTICLE 4. CONSTRUCTION IN FAVOR OF existence and not the exercise thereof.
LABOR. All doubts in the implementation and
interpretation of the provisions of this Code, ARTICLE 18. BAN ON DIRECT-HIRING. No
including its implementing rules and employer may hire a Filipino worker for
regulations, shall be resolved in favor of labor. overseas employment except through the
Boards and entities authorized by the
ARTICLE 5. RULES AND REGULATIONS. Secretary of Labor. Direct-hiring by members
The Department of Labor and other of the diplomatic corps, international
government agencies charged with the organizations and such other employers as
administration and enforcement of this Code may be allowed by the Secretary of Labor is
or any of its parts shall promulgate the exempted from this provision.
necessary implementing rules and
regulations. Such rules and regulations shall GENERAL RULE: No employer may hire a
become effective fifteen (15) days after Filipino worker for overseas employment.
announcement of their adoption in
newspapers of general circulation. EXCEPTION:
a) diplomatic corps
Implementing Agencies b) international organizations
c) other employees allowed by
Secretary of Labor and Employment


Name Hire a worker who is able to secure
contract for employment overseas without the
assistance or participation of any agency.
However, he should still undergo
processing by the POEA


shall be mandatory for all Filipino workers
abroad to remit a portion of their foreign (d) To induce or attempt to induce a
exchange earnings to their families, worker already employed to quit his
dependents, and/or beneficiaries in the employment in order to offer him to another
country in accordance with rules and unless the transfer is designed to liberate the
regulations prescribed by the Secretary of worker from oppressive terms and conditions
Labor of employment;
(e) To influence or to attempt to
GENERAL RULE: It is mandatory for all influence any person or entity not to employ
Filipino workers to remit a portion of their any worker who has not applied for
foreign exchange earnings to their families, employment through his agency;
dependents, and/or beneficiaries in the (f) To engage in the recruitment or
country through BSP or DOLE authorized placement of workers in jobs harmful to public
agents health or morality or to the dignity of the
Republic of the Philippines;
EXCEPTION: (g) To obstruct or attempt to obstruct
Remittance is not mandatory in the following inspection by the Secretary of Labor or by his
instance: duly authorized representatives;
(a) Where the workers immediate (h) To fail to file reports on the status of
family members, dependents, or beneficiaries employment, placement vacancies,
are residing with him abroad; remittance of foreign exchange earnings,
(b) Filipino servicemen working in the separation from jobs, departures and such
U.S. military installations; other matters or information as may be
(c) Immigrants and Filipino professionals required by the Secretary of Labor.
and employees working with the United (i) To substitute or alter employment
Nations agencies or specialized bodies. contracts approved and verified by the
Department of Labor from the time of actual
signing thereof by the parties up to and
ARTICLE 27. CITIZENSHIP REQUIREMENT. including the periods of expiration of the
Only Filipino citizens or corporations, same without the approval of the Secretary of
partnerships or entities at least seventy-five Labor;
percent (75%) of the authorized and voting (j) To become an officer or member of
capital stock of which is owned and controlled the Board of any corporation engaged in
by Filipino citizens shall be permitted to travel agency or to be engaged directly or
participate in the recruitment and placement indirectly in the management of a travel
of workers, locally or overseas. agency; and
(k) To withhold or deny travel
ARTICLE 34. PROHIBITED PRACTICES. It documents from applicant workers before
shall be unlawful for any individual, entity, departure for monetary or financial
licensee, or holder of authority: considerations other than those authorized
(a) To charge or accept, directly or under this Code and its implementing rules
indirectly, any amount greater than that and regulations
specified in the schedule of allowable fees
prescribed by the Secretary of Labor, or to MNEMONICS:
make a worker pay any amount greater than CAFF-IndIE-OFF-SOW
that actually received by him as a loan or CA Charge or Accept
advance; F Furnish or publish
(b) To furnish or publish any false notice F False notice
or information or document in relation to Ind Induce or attempt to induce
recruitment or employment; I Influence or attempt to influence
(c) To give any false notice, testimony, E Engage
information or document or commit any act of O Obstruct or attempt to obstruct
misrepresentation for the purpose of securing FF Fail to File
a license or authority under this Code. S Substitute or alter
O Officer or member
W Withhold or deny The Secretary shall order the search of the
office or premises and seizure of documents,
ARTICLE 37. VISITORIAL POWER. The paraphernalia, properties and other
Secretary of Labor or his duly authorized implements used in illegal recruitment
representatives may, at any time, inspect the activities and the closure of companies,
premises, books of accounts and records of establishments and entities found to be
any person or entity covered by this Title, engaged in the recruitment of workers for
require it to submit reports regularly on overseas employment, without having been
prescribed forms, and act on violation of any licensed or authorized to do so. Declared
unconstitutional in Salazar v. Achacoso,
183 SCRA 145.


NONRESIDENT 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

The employment permit may be issued to a

nonresident 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

For an enterprise registered in preferred areas

provisions of this Title. of investments, said employment permit may
be issued upon recommendation of the
ARTICLE 38. ILLEGAL RECRUITMENT. government agency charged with the
(a) Any recruitment activities, including supervision of said registered enterprise.
the prohibited practices enumerated under
Article 34 of this Code, to be undertaken by Aliens exempted from securing Alien
non-licensees or non-holders of authority, Employment Permit
shall be deemed illegal and punishable under (a) All members of diplomatic services
Article 39 of this Code. The Department of and foreign government officials accredited by
Labor and Employment or any law and with reciprocity arrangement with the
enforcement officer may initiate complaints Philippine government;
under this Article. (b) Officers and staff of international
(b) Illegal recruitment when committed organizations of which the Philippine
by a syndicate or in large scale shall be government is a member, and their legitimate
considered an offense involving economic spouses desiring to work in the Philippines;
sabotage and shall be penalized in accordance (c) Foreign nationals elected as
with Article 39 hereof members of Governing Board who do not
occupy any other position, but have only
Illegal recruitment is deemed committed by a voting rights in the corporation;
syndicate if carried out by a group of three (3) (d) All foreign nationals granted
or more persons conspiring and/or exemption by law;
confederating with one another in carrying out (e) Owners and representative of
any unlawful or illegal transaction, enterprise foreign principals, whose companies are
or scheme defined under the first paragraph accredited by the POEA, who come to the
hereof. Illegal recruitment is deemed Philippines for a limited period solely for the
committed in large scale if committed against purpose of interviewing Filipino applicants for
three (3) or more persons individually or as a employment abroad;
group. (f) Foreign nationals who come to the
Philippines to teach, present, and/or conduct
(c) The Secretary of Labor and research studies in universities and colleges
Employment or his duly authorized as visiting, exchange or adjunct professors
representatives shall have the power to cause under formal agreements between the
the arrest and detention of such non-licensee universities or colleges in the Philippines and
or non-holder of authority if after investigation foreign universities or colleges or between the
it is determined that his activities constitute a Philippine government; provided that
danger to national security and public order or exemption is on reciprocal basis;
will lead to further exploitation of jobseekers. (g) Resident foreign nationals.
Penalty: P10,000 for every year of fraction