Dokumen - Tips - Labor Law Review Atty V Duano PDF

8/17/2019 Labor Law Review - Atty v Duano
INTRODUCTION
• LABOR means physical toil

• SALARY came from the Greek word “Salarium” which means salt
LABOR STA!AR!S
rules and re&ulations" relatin&
minimum to re#uirements
hours of work'prescri$ed $y e%istin&
cost of li(in& laws'
allowance and
other monetary and welfare $ene)ts includin& occupational' safety and
health standards
• LABOR R*LAT+OS
KINDS OF LABOR LAWS

+, LABOR STA!AR!S LA-S
Laws' rules and re&ulations that set the minimum re#uirements
for terms and conditions of employment such as wa&es' hours of
work' etc
++, LABOR LA-S . SO/+AL L*G+SLAT+OS
Laws' rules and re&ulations that promote welfare of all sectors of
society, This includes laws that pro(ide particular kinds of
protection or $ene)ts to the society' in furtherance of social
0ustice,
ot all social le&islation are la$or laws,
SOURCES OF LABOR LAWS

I. 1987 Constitution
•
Art ++' Sec 12
Section 10. The State shall promote social justice in all
phases of national development.
• Art ++' Sec 13

Section 18. The State arms labor as a primary social
economic force. It shall protect the rights of worers and
promote their welfare.
• Art 4++' Sec 15

Section 1!. The State shall promote the preferential use
of "ilipino labor# domestic materials and locally produced
goods# and adopt measures that help mae them
competitive.
• Art 4+++' Sec 1
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1

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http://slidepdf.com/reader/full/labor-law-review-atty-v-duano 1/75
Section 1. The $ongress shall give highest priority to the

enactment of measures that protect and enhance the
right of all the people to human dignity# reduce social#
economic# and political ine%ualities# and remove cultural
ine%uities by e%uitably di&using wealth and political
power for the common good.
To this end# the State shall regulate the ac%uisition#

ownership# use# and disposition of property and its
increments.
• Art 4+++' Sec 9:
Section '. The State shall aford ull protection to

labor, local and overseas, organized and
unorganized, and promote ull employment and
equality o employment opportunities or all.
It shall guarantee the rights of all worers to self(

organi)ation# collective bargaining and negotiations# and
peaceul concerted activities, including the right to
strike in accordance with law. They shall be entitled to
security of tenure# humane conditions of wor# and a
living wage. They shall also participate in policy and
decision(maing processes a&ecting their rights and
bene*ts as may be provided by law.
The State shall promote the principle o shared

responsibility between workers and employers and
the preerential use o voluntary modes in settling
disputes, including conciliation# and shall enforce their
mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between worers

and employers# recogni)ing 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
e+pansion and growth.

Atty 8oltaire !uano
*200 !ar "#am $uestion
,olicies which were not covered in the -abor $ode
• principle of shared responsibility between worers and employers and the
• preferential use of voluntary modes in settling disputes
• regulation of relations bet worers and employees
• creation of economic opportunities
*200% !ar "#am $uestion
The purpose of labor legislation.
• Art 4+++' Sec 1;

Section 1/. The State shall protect woring women by
providing safe and healthful woring conditions# taing
into account their maternal functions# and such facilities
and opportunities that will enhance their welfare and
enable them to reali)e their full potential in the service of
the nation.
/onstitutional <ro(isions are not self=e%ecutin&,
Jurispru!n"!#
A&a$on (s LR/>
The constitutional mandates of protection to la$or
and security of tenure may $e deemed as self=
e%ecutin& in the senses that these are
automatically acknowled&ed and o$ser(ed without
need for any ena$lin& le&islation, 6owe(er to
declare that the constitutional pro(isions are
enou&h to &uarantee the full e%ercise of the ri&hts
em$odied therein' and the reali?ation of ideals
therein e%pressed' would $e impractical' if not
unrealistic, The espousal of such (iew presents
dan&erous tendency of $ein& o(er$oard and
e%a&&erated,

Atty 8oltaire !uano
Serrano (s Gallant @aritime Ser(ices' +nc,

Thus Sec 9' Art 4+++ cannot $e treated as a principal
source of direct enforcea$le ri&hts' for the (iolation
of which the #uestioned case may $e declared
unconstitutional, +t may unwittin&ly risk openin&
the ood&ates of liti&ation to e(ery worker or union
o(er e(ery concei(a$le (iolation of so $road a
concept as social 0ustice for la$or,
II. Ci$i% Co!

rt. 100. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor
contracts must yield to the common good. Therefore# such contracts are
subject to the special laws on labor unions# collective bargaining# stries
and locouts# closed shop# wages# woring conditions# hours of labor and
similar subjects.
rt. 101. 2either capital nor labor shall act oppressively against the
other# or impair the interest or convenience of the public.
rt. 10!. In case of doubt# all labor legislation and all labor contracts
shall be construed in favor of the safety and decent living for the laborer.
rt. 10'. 2o contract which practically amounts to involuntary servitude#

under any guise whatsoever# shall be valid.
rt. 10/. In collective bargaining# the labor union or members of the

board or committee signing the contract shall be liable for non(ful*llment
thereof.
rt. 103. The laborer4s wages shall be paid in legal currency.
rt. 105. 6ithholding of the wages# e+cept for a debt due# shall not be
made by the employer.
rt. 10. The laborer4s wages shall be a lien on the goods manufactured
or the wor done.
rt. 108. The laborer4s wages shall not be subject to e+ecution or
attachment# e+cept for debts incurred for food# shelter# clothing and
medical attendance.
rt. 107. The employer shall neither sei)e nor retain any tool or other
articles belonging to the laborer.
rt. 110. ismissal of laborers shall be subject to the supervision of the

9overnment# under special laws.
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;

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III. R!$is! &!n'% Co!

rt. !88. :ther similar coercions; <$ompulsory purchase of merchandise
and payment of wages by means of toens.= > The penalty of arresto
mayor or a *ne ranging from !00 to 300 pesos# or both# shall be imposed
upon any person# agent or ocer# of any association or corporation who
shall force or compel# directly or indirectly# or shall nowingly permit any
laborer or employee employed by him or by such *rm or corporation to be
forced or compelled# to purchase merchandise or commodities of any
ind.
The same penalties shall be imposed upon any person who shall pay the
wages due a laborer or employee employed by him# by means of toens
or objects other than the legal tender currency of the laborer or
employee.
BASES OF LABOR LAWS

+, <OL+/* <O-*R
+t is the inherent power of the State to re&ulate ri&hts and li$erty for the
common &ood,
Jurispru!n"!#
J(( $s CA#
The latin ma+im salus populi est surprema le+ embodies the character
of the entire spectrum of public laws aimed at promoting the general
welfare of the people under the State4s police power. s an inherent
attribute of sovereignty which virtually ?e+tends to all public needs#?
this ?least limitable? & of governmental powers grants a wide panoply
of instruments through which the state# as parens patriae gives e&ect
to a host of its regulatory powers.
Asso" ! A)ri"u%tur!s ! T'%is*+Si%'* $s T'%is'*+Si%'* (i%%in)

Co.S!rr'no#
True it is that# as counsel for the centrals contend# police power cannot
be resorted to just any time the legislature wishes# but it is not correct
to say that it is indispensable that e+ceptional circumstances must
e+ist before police power can be e+ercised. s very aptly pointed out
by the able amicus curiae# ttys. Tanada Teehanee and $arreon# gone
are the days when courts could ?be found adhering to the doctrine that
interference with contracts can only be justi*ed by e+ceptional
circumstances?# for the ?test of validity today under the due process
clause# even in the case of legislation interfering with e+isting
contracts# is reasonableness# as held by this @onorable Supreme $ourt
in the case of ,eople vs. Aeta. In other words# freedom from
arbitrariness# capriciousness and whimsicality is the test of
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 

Atty 8oltaire !uano
constitutionality.? <p. 1# Brief of micus $uiae in Behalf of Silay(

Saravia ,lanters4 ssociation# ttys. Tanada Teehanee and $arreon.=
nd there is not enough showing here of unreasonableness in the
legislation in %uestion. Cuite to the contrary# as win be discussed anon
6e *nd all the provisions of the impugned act to be germane to the
end being pursued.
But it is not police power alone that sustains the validity of the
statutory provision in dispute. @aving in view its primary objective to
promote the interests of labor# it can never be possible that the State
would be bereft of constitutional authority to enact legislations of its
ind. @ere# in the ,hilippines# whenever any government measure
designed for the advancement of the woring class is impugned on
constitutional grounds and shadows of doubt are cast over the scope
of the State4s prerogative in respect thereto# the imperious mandate of
the social justice Ideal consecrated in our fundamental laws# both the
old and the new asserts its majesty# upon the courts to accord utmost
consideration to the spirit animating the act assailed# not just for the
sae of enforcing the e+plicit social justice provisions of the article on
?eclaration of ,rinciples and State ,olicies?# but more fundamentally#
to serve the sacred cause of human dignity# which is actually what lies
at the core of those constitutional precepts as it is also the decisive
element always in the determination of any controversy between
capital and labor.
II. SOCIAL JUSTICE

<romotion of the welfare of ALL T6* <*O<L*
Those who ha(e less in life shall ha(e more in law,
Jurispru!n"!#
C'%'%'n) $s Wi%%i',s#
?Social justice is 4neither communism# nor despositism# nor atomism
nor anarchy#4 but the humani)ation of laws and the e%uali)ation of
social and economic forces by the State so that justice in its rational
and objectively secular conception may at least be appro+imated.
Social justice means the promotion of the welfare of all the people# the
adoption by the 9overnment of measures calculated to insure
economic stability of all the component elements of society# through
the maintenance of a proper economic and social e%uilibrium in the
inter(relations of the members of the community# constitutionally#
through the adoption of measures legally justi*able# or e+tra(
constitutionally# through the e+ercise of powers underlying the
e+istence of all governments on the time(honored principle of salus
populi est suprema le+.?
.
&LDT $s NLRC- Au) 1988
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C

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The policy of social justice is not intended to countenance wrongdoing

simply because it is committed by the underprivileged. t best it may
mitigate the penalty but it certainly will not condone the o&ense.
$ompassion for the poor is an imperative of every humane society but
only when the recipient is not a rascal claiming an undeserved
privilege. Social justice cannot be permitted to be refuge of scoundrels
any more than can e%uity be an impediment to the punishment of the
guilty. Those who invoe social justice may do so only if their hands
are clean and their motives blameless and not simply because they
happen to be poor. This great policy of our $onstitution is not meant
for the protection of those who have proved they are not worthy of it#
lie the worers who have tainted the cause of labor with the
blemishes of their own character.
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- D

Atty 8oltaire !uano
TE LABOR CODE OF TE &ILI&&INES
LABOR STANDARDS
Book + <re *mployment
Book ++ 6uman Resources !e(elopment
Book +++ /onditions of *mployment
Book +8 6ealth' Safety . Social -elfare Bene)ts
LABOR RELATIONS
Book 8 La$or Relations
Book 8+ <ost *mployment
Book 8++ Transitory . 7inal <ro(isions
SOCIAL LE/ISLATIONS
19 T6 @onth <ay Law
Social Security Act of 1EED
<hil6ealth
*mployeeFs /omensation <ro&ram
Solo -elfare Act of 5222
GS+S Law
R,A, DCEE <orta$ility Law
R,A, 32;5 @i&rant -orkers Act
R,A, DDEC Technical *ducation and Skills !e(elopment Authority
T*S!A Law
R,A, E;;5 Re special $ene)ts of persons with !isa$ilities
Amendin& R,A, D5DD
R,A, E3;E Re the <roclamation of *idhl Adha as a ational 6oliday
R,A, E;E5 Re the !eclaration of Re&ular 6olidays .
ationwide Special 6olidays
R,A, CD5D -a&e Rationali?ation Act
R,A, 3535 SSS Law
R,A, ED12 @a&na /arta for -omen
R,A, E5C5 Anti=8iolence A&ainst -omen and their /hildren
R,A, EEE Anti=<hoto and 8ideo 8oyeurism Act of 522E
R,A, DC12 Special <rotection of /hildren a&ainst A$use'
*%ploitation . !iscrimination Act
R,A, 1212 <ro(isions re i&htworkers' Repealin& Art 192 and 191

Atty 8oltaire !uano
LABOR LAW RE0IEW
A. FUNDA(ENTAL &RINCI&LES  &OLICIES

1. Constitution'% &ro$isions
'. Arti"%! II
Section 7. The State shall promote a just and dynamic

social order that will ensure the prosperity and
independence of the nation and free the people from
poverty through policies that provide ade%uate social
services# promote full employment# a rising standard of
living# and an improved %uality of life for all.
Section 10. The State shall promote social justice in all

phases of national development.
Section 11. The State values the dignity of every human

person and guarantees full respect for human rights.
Section 1'. The State recogni)es the vital role of the

youth in nation(building and shall promote and protect
their physical# moral# spiritual# intellectual# and social
well(being. It shall inculcate in the youth patriotism and
nationalism# and encourage their involvement in public
and civic a&airs.
Section 1/. The State recogni)es the role of women in

nation(building# and shall ensure the fundamental
e%uality before the law of women and men.
Section 18. The State arms labor as a primary social

economic force. It shall protect the rights of worers and
promote their welfare.
Section !0. The State recogni)es the indispensable role of

the private sector# encourages private enterprise# and
provides incentives to needed investments.
2. Arti"%! III
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- E

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Section 1. 2o person shall be deprived of life# liberty# or

property without due process of law# nor shall any person
be denied the e%ual protection of the laws.
Section /. 2o law shall be passed abridging the freedom
of
thespeech#
people of e+pression#
peaceably or of the press#
to assemble or the the
and petition right of
government for redress of grievances.
Section 8. The right of the people# including those

employed in the public and private sectors# to form
unions# associations# or societies for purposes not
contrary to law shall not be abridged.
". Arti"%! 3III
Section 1. The $ongress shall give highest priority to the

enactment of measures that protect and enhance the
right of all the people to human dignity# reduce social#
economic# and political ine%ualities# and remove cultural
ine%uities by e%uitably di&using wealth and political
power for the common good.
To this end# the State shall regulate the ac%uisition#
ownership# use# and disposition of property and its
increments.
Section '. The State shall aford ull protection to

labor, local and overseas, organized and
unorganized, and promote ull employment and
equality o employment opportunities or all.
It shall guarantee the rights of all worers to self(
organi)ation# collective bargaining and negotiations# and

peaceul concerted activities, including the right to
strike in accordance with law. They shall be entitled to
security of tenure# humane conditions of wor# and a
living wage. They shall also participate in policy and
Atty 8oltaire !uano
decision(maing processes a&ecting their rights and

bene*ts as may be provided by law.
The State shall promote the principle o shared
responsibility between workers and employers and
the preerential use o voluntary modes in settling
disputes, including conciliation# and shall enforce their
mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between worers
and employers# recogni)ing 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
e+pansion and growth.
4. N!5 Ci$i% Co!
'rt. ()00. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor
contracts must yield to the common good. Therefore# such contracts
are subject to the special laws on labor unions# collective bargaining#
stries and locouts# closed shop# wages# woring conditions# hours of
labor and similar subjects.
'rt. ()0(. 2either capital nor labor shall act oppressively against the
other# or impair the interest or convenience of the public.
'rt. ()02. In case of doubt# all labor legislation and all labor contracts
shall be construed in favor of the safety and decent living for the
laborer.
'rt. ()0&. 2o contract which practically amounts to involuntary

servitude# under any guise whatsoever# shall be valid.

Atty 8oltaire !uano
'rt. ()0. In collective bargaining# the labor union or members of the

board or committee signing the contract shall be liable for non(
ful*llment thereof.
'rt. ()0+. The laborer4s wages shall be paid in legal currency.
'rt. ()0%. 6ithholding of the wages# e+cept for a debt due# shall not
be made by the employer.
'rt. ()0). The laborer4s wages shall be a lien on the goods

manufactured or the wor done.
rt. 108. The laborer4s wages shall not be subject to e+ecution or
attachment# e+cept for debts incurred for food# shelter# clothing and
medical attendance.
rt. 107. The employer shall neither sei)e nor retain any tool or other
articles belonging to the laborer.
rt. 110. ismissal of laborers shall be subject to the supervision of

the 9overnment# under special laws.
6. L'2or Co!
a, Article 9
Article 3. Declaration of basic policy. 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,
collectie bargaining, security of tenure, and !ust and humane conditions of
work.
$, Article 511
Article 211. Declaration of "olicy.

Atty 8oltaire !uano
#t is the policy of the State$
To promote and emphasize the primacy of free collectie bargaining and

negotiations, including oluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes%
To promote free trade unionism as an instrument for the enhancement of

democracy and the promotion of social !ustice and deelopment%
To foster the free and oluntary organization of a strong and united labor
moement%
To promote the enlightenment of workers concerning their rights and

obligations as union members and as employees%
To proide an adequate administratie machinery for the expeditious
settlement of labor or industrial disputes%

To ensure a stable but dynamic and !ust industrial peace% and
To ensure the participation of workers in decision and policy-making

processes affecting their rights, duties and welfare.
To encourage a truly democratic method of regulating the relations between

the employers and employees by means of agreements freely entered into
through collectie bargaining, no court or administratie agency or official
shall hae the power to set or fix wages, rates of pay, hours of work or other
terms and conditions of employment, except as otherwise proided under

this &ode. '(s amended by Section ), *epublic (ct +o. /, 0arch 1,
2324
c, Article 515
Article 212. Definitions.
5&ommission5 means the +ational 6abor *elations &ommission or any of its

diisions, as the case may be, as proided under this &ode.
57ureau5 means the 7ureau of 6abor *elations and8or the 6abor *elations
Diisions in the regional offices established under "residential Decree +o.
, in the Department of 6abor.

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57oard5 means the +ational &onciliation and 0ediation 7oard established

under 9xecutie :rder +o. 1.
5&ouncil5 means the Tripartite ;oluntary (rbitration (disory &ouncil

established under 9xecutie :rder +o. 1, as amended.
59mployer5 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.
59mployee5 includes any person in the employ of an employer. The term

shall not be limited to the employees of a particular employer, unless the
&ode so explicitly states. #t shall include any indiidual 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 equialent and regular employment.
56abor organization5 means any union or association of employees which

exists in whole or in part for the purpose of collectie bargaining or of
dealing with employers concerning terms and conditions of employment.
56egitimate labor organization5 means any labor organization duly

registered with the Department of 6abor and 9mployment, and includes any
branch or local thereof.
5&ompany union5 means any labor organization whose formation, function

or administration has been assisted by any act defined as unfair labor
practice by this &ode.

57argaining representatie5 means a legitimate labor organization whether
or not employed by the employer.
5<nfair labor practice5 means any unfair labor practice as expressly defined
by the &ode.
56abor dispute5 includes any controersy or matter concerning terms and

conditions of employment or the association or representation of persons in
negotiating, fixing, maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the disputants stand in the

proximate relation of employer and employee.
50anagerial employee5 is one who is ested with the powers or prerogaties

to lay down and execute management policies and8or to hire, transfer,
suspend, lay-off, recall, discharge, assign or discipline employees.
Superisory employees are those who, in the interest of the employer,
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1;
Atty 8oltaire !uano
effectiely recommend such managerial actions if the exercise of such

authority is not merely routinary or clerical in nature but requires the use of
independent !udgment. (ll employees not falling within any of the aboe
definitions are considered rank-and-file employees for purposes of this
7ook.
5;oluntary (rbitrator5 means any person accredited by the 7oard as such or
any person named or designated in the &ollectie 7argaining (greement by
the parties to act as their ;oluntary (rbitrator, or one chosen with or without
the assistance of the +ational &onciliation and 0ediation 7oard, pursuant to
a selection procedure agreed upon in the &ollectie 7argaining (greement,
or any official that may be authorized by the Secretary of 6abor and
9mployment to act as ;oluntary (rbitrator upon the written request and
agreement of the parties to a labor dispute.
5Strike5 means any temporary stoppage of work by the concerted action of
employees as a result of an industrial or labor dispute.

56ockout5 means any temporary refusal of an employer to furnish work as a
result of an industrial or labor dispute.
5#nternal union dispute5 includes all disputes or grieances arising from any
iolation of or disagreement oer any proision of the constitution and by
laws of a union, including any iolation of the rights and conditions of union
membership proided for in this &ode.
5Strike-breaker5 means any person who obstructs, impedes, or interferes
with by force, iolence, coercion, threats, or intimidation any peaceful

picketing affecting wages, hours or conditions of work or in the exercise of
the right of self-organization or collectie bargaining.
5Strike area5 means the establishment, warehouses, depots, plants or

offices, including the sites or premises used as runaway shops, of the
employer struck against, as well as the immediate icinity actually used by
picketing strikers in moing to and fro before all points of entrance to and
exit from said establishment. '(s amended by Section =, *epublic (ct +o.
/, 0arch 1, 2324
d, Article 5
Article 255. 9xclusie
bargaining representation and workers> participation
in policy and decision-making. The labor organization designated or
selected by the ma!ority of the employees in an appropriate collectie
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1
Atty 8oltaire !uano
bargaining unit shall be the exclusie representatie of the employees in

such unit for the purpose of collectie bargaining. ?oweer, an indiidual
employee or group of employees shall hae the right at any time to present
grieances to their employer.
(ny
right,proision of such
sub!ect to law torules
the contrary notwithstanding,
and regulations workers shall
as the Secretary haeand
of 6abor the
9mployment may promulgate, to participate in policy and decision-making
processes of the establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare. @or this
purpose, workers and employers may form labor-management councils$
"roided, That the representaties of the workers in such labor-
management councils shall be elected by at least the ma!ority of all
employees in said establishment. '(s amended by Section 11, *epublic (ct
+o. /, 0arch 1, 2324
B. RECRUIT(ENT  &LACE(ENT
1. R!"ruit,!nt o Lo"'%  (i)r'nt Wor!rs
a, D!nition o R!"ruit,!nt 'n &%'"!,!nt
rt 1'b -abor $ode. Decruitment and placement
Decruitment and placement refers to any act of canvassing#

enlisting# contracting# transporting# utili)ing# hiring or procuring
worers# and includes referrals# contract services# promising or
advertising for employment# locally or abroad# whether for pro*t
or not ,rovided# That any person or entity which# in any
manner# o&ers or promises for a fee# employment to two or
more persons shall be deemed engaged in recruitment and
placement.
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1C

Atty 8oltaire !uano
$SE SSI92FE2T
eople vs -on. omingo anis
/acts Serapio bug was charged with illegal recruitment in /

criminal information. bug *led a motion to %uash these
information# contending that rt1'b of the -abor codes provides
that there shall be illegal recruitment only if recruitment and
placement was committed against two or more persons.
The :ce of the Solicitor 9eneral argued that the
re%uirement that there should be two or more persons if the
recruitment consists of an o&er or promise of employment to such
persons and always for a fee.
1ssue 6hether or not the clause Gtwo or more personsH should
be construed as a re%uirement for the commission of illegal

recruitment
uling The S$ held

G++ The proviso merely lays down a rule of
evidence that where a fee is collected in
consideration of a promise or o&er of
employment to two or more prospective
worers# the individual or entity dealing with

a License (s Authority
3icense is a document issued $y the !OL* authori?in& a
person or entity to operate a pri(ate recruitment
employment a&ency, A licensee is authori?ed to collect
fees,
'uthority is a document issued $y the !OL* authori?in&

a person or association to en&a&e in recruitment and
placement acti(ities as a pri(ate recruitment a&ency,
$ *ssential *lements of +lle&al Recruitment
GIt is well settled that to prove illegal recruitment# it must

be shown that appellant gave complainants the distinct
impression that he had the power or ability to send
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1D
Atty 8oltaire !uano
complainants abroad for wor such that the latter were

convinced to part with their money in order to be
employed. ppellants act of promising the private
complainants that they will be deployed abroad within
three months after they have paid the cash bond clearly
shows that he is engaged in illegal recruitment.H J ,eople
vs 9asacao
45o prove illegal recruitment, only two elements

need to be shown 6(7 the person charged with the
crime must have undertaken recruitment activities
and 627 the said person does not have a license or
authority to do so.8 9 eople vs de 3eon, /eb ),
()
45here is illegal recruitment when one gives the

impression o aving the ability to send a worker
abroad.8 9eople vs :oce, 'ug 2, (+
'rticle &;. Illegal recruitment.
ny recruitment activities# including the prohibited

practices enumerated under rticle '/ of this $ode# to be
undertaen by non(licensees or non(holders of authority#
shall be deemed
this $ode. illegal and punishable
The epartment under
of -abor and rticle '7 or
Employment of
any law enforcement ocer may initiate complaints
under this rticle.
Illegal recruitment when committed by a syndicate or in

large scale shall be considered an o&ense involving
economic sabotage and shall be penali)ed in accordance
with rticle '7 hereof.
Illegal recruitment is deemed committed by a syndicate if

carried out by a group of three <'= or more persons
conspiring andKor confederating with one another in
carrying out any unlawful or illegal transaction# enterprise
or scheme de*ned under the *rst paragraph hereof.
Illegal recruitment is deemed committed in large scale if

Atty 8oltaire !uano
committed against three <'= or more persons individually

or as a group.
'rticle &. ,rohibited practices. It shall be unlawful for

any individual# entity# licensee# or holder of authority
To charge or accept# directly or indirectly# any amount

greater than that speci*ed in the schedule of allowable
fees prescribed by the Secretary of -abor# or to mae a
worer pay any amount greater than that actually
received by him as a loan or advance;
To furnish or publish any false notice or information or

document in relation to recruitment or employment;
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
$ode.
To induce or attempt to induce a worer already

employed to %uit his employment in order to o&er him to
another unless the transfer is designed to liberate the
worer from oppressive terms and conditions of
employment;
To inLuence or to attempt to inLuence any person or

entity not to employ any worer who has not applied for
employment through his agency;
To engage in the recruitment or placement of worers in

jobs harmful to public health or morality or to the dignity
of the Depublic of the ,hilippines;
To obstruct or attempt to obstruct inspection by the

Secretary of -abor or by his duly authori)ed
representatives;
To fail to *le reports on the status of employment#

placement vacancies# remittance of foreign e+change
earnings# separation from jobs# departures and such other
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1E
Atty 8oltaire !uano
matters or information as may be re%uired by the

Secretary of -abor.
To substitute or alter employment contracts approved and

veri*ed by the epartment of -abor from the time of
actual signing thereof by the parties up to and including
the periods of e+piration of the same without the approval
of the Secretary of -abor;
To become an ocer 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
To withhold or deny travel documents from applicant

worers before departure for monetary or *nancial
considerations other than those authori)ed under this
$ode and its implementing rules and regulations.
R,A, 32;5' as amended $y RA 12255
Sec, 5. E"I2ITI:2S. "or purposes of this ct# illegal

recruitment shall mean any act of canvassing# enlisting#
contracting# transporting# utili)ing# hiring# procuring
worers and includes referring# contact services#
promising or advertising for employment abroad# whether
for pro*t or not# when undertaen by a non(license or
non(holder of authority contemplated under rticle 1'<f=
of ,residential ecree 2o. //!# as amended# otherwise
nown as the -abor $ode of the ,hilippines. ,rovided# that
such non(license or non(holder# who# in any manner#
o&ers or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall
liewise include the following acts# whether committed by
any persons# whether a non(licensee# non(holder# licensee
or holder of authority.
<a= To charge or accept directly or indirectly any amount

greater than the speci*ed in the schedule of allowable
fees prescribed by the Secretary of -abor and
Employment# or to mae a worer pay any amount
greater than that actually received by him as a loan or
advance;

Atty 8oltaire !uano
<b= To furnish or publish any false notice or information or

<c= To give any false notice# testimony# information or

purpose of securing a license or authority under the -abor
$ode;
<d= To induce or attempt to induce a worer already

employed to %uit his employment in order to o&er him
another unless the transfer is designed to liberate a
worer from oppressive terms and conditions of
employment;
<e= To inLuence or attempt to inLuence any persons or

entity not to employ any worer who has not applied for
<f= To engage in the recruitment of placement of worers

in jobs harmful to public health or morality or to dignity of
the Depublic of the ,hilippines;
<g= To obstruct or attempt to obstruct inspection by the

Secretary of -abor and Employment or by his duly
authori)ed representative;
<h= To fail to submit reports on the status of employment#

placement vacancies# remittances of foreign e+change
earnings# separations from jobs# departures and such
other matters or information as may be re%uired by the
Secretary of -abor and Employment;
<i= To substitute or alter to the prejudice of the worer#

employment contracts approved and veri*ed by the
epartment of -abor and Employment from the time of
actual signing thereof by the parties up to and including
the period of the e+piration of the same without the
approval of the epartment of -abor and Employment;
<j= "or an ocer or agent of a recruitment or placement

agency to become an ocer or member of the Board of
any corporation engaged in travel agency or to be
engaged directly on indirectly in the management of a
travel agency;
<= To withhold or deny travel documents from applicant


Atty 8oltaire !uano
considerations other than those authori)ed under the

-abor $ode and its implementing rules and regulations;
<l= "ailure to actually deploy without valid reasons as

determined by the epartment of -abor and Employment;
and
<m= "ailure to reimburse e+penses incurred by the

worers in connection with his documentation and
processing for purposes of deployment# in cases where
the deployment does not actually tae place without the
worer4s fault. Illegal recruitment when committed by a
syndicate or in large scale shall be considered as o&ense
involving economic sabotage.
Illegal recruitment is deemed committed by a syndicate

carried out by a group of three <'= or more persons
conspiring
deemed or confederating
committed with if one
in large scale another.against
committed It is
three <'= or more persons individually or as a group.
The persons criminally liable for the above o&enses are

the principals# accomplices and accessories. In case of
juridical persons# the ocers having control#
management or direction of their business shall be liable.
c Simple +lle&al Recruitment
Simple +lle&al Recruitment is the act of recruitin& and

placin& one or two workers a$road without the re#uired
license or authority' committed $y one to two persons,
&!n'%t*#
+mprisonment of not less than 15 yrs and 1 day to not

more than 52 yrsH and
7ine of not less than 1@ to not more than 5@,
d +lle&al Recruitment in Lar&e Scale
GIllegal recruitment is deemed committed by a syndicate

if carried out by a group of three <'= or more persons
conspiring andKor confederating with one another in
Atty 8oltaire !uano
carrying out any unlawful or illegal transaction#

enterprise or scheme de*ned under the *rst paragraph
hereof. Illegal recruitment is deemed committed in large
scale if committed against three <'= or more persons
individually or as a group.H J,eople vs $alon)o# "ebruary
!# 1775
<ase 'ssignment
eople vs -ashim
"acts ccused @ashim# Facy and a certain Tas# a certain Mun

and 2eneng were charged with syndicated illegal recruitment
committed against four women. The latter were promised a
decent job abroad but were instead brought to Falaysia to wor as
prostitutes. :nly 2eneng and @ashim were arrested and

arraigned.
ccused 2eneng contends that the charge should not be
syndicated illegal recruitment because there were only two of
them and that the other accused remain at large.
Issue 6hether or not the three accused should be arrested and

arraigned in order for syndicated illegal recruitment to propser
Duling The S$ held that the

G++ it was established beyond reasonable doubt
that accused(appellant# together with at least two
other persons# came to an agreement to commit
the felony and decided to commit it. 1t is not
necessary to show that two or more persons met
together and entered into an e+plicit agreement
laying down the details of how an unlawful scheme
or objective is to be carried out. $onspiracy may be
deduced from the mode and manner in which the

e +lle&al Recruitment as *conomic Sa$ota&e
GIllegal recruitment is deemed committed in large scale if

committed against three or more persons individually or
as a group. In this case# *ve complainants testi*ed

Atty 8oltaire !uano
against appellants acts of illegal recruitment# thereby

rendering his acts tantamount to economic sabotage.
Nnder Section  <b= of D 2o. 80/!# the penalty of life
imprisonment and a *ne of not less than ,300#000.00 nor
more than ,1#000.000.00 shall be imposed if illegal
recruitment constitutes economic sabotage.H J,eople vs
9asacao
<enalty>
Life +mprisonmentH and
7ine of not less than 5@ to not more than @,
f +lle&al Recruitment )led a&ainst employees Iadded $ased

on the lecture
*mployees are lia$le as ille&al recruiters when there is

conspiracy to recruit without the necessary
licenseJauthority,
+n the case of <eople (s /a$ais' the 6i&h /ourt held

/a$ais' an employee and an applicant herself' lia$le, She
acted directly and participated in the recruitment
acti(ities
necessaryoflicense
her employer RS*A
to recruit, which
/a$ais didrepresented
also not ha(e the
herself to the applicant that RS*A can send them a$road
for work,
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 5;

Atty 8oltaire !uano
<ase 'ssignment
eople vs <abais
"acts ccused $abais was an employee of Ded Sea Employment

gency# owned by nita "orneas. They# along with @arm Oong @o#
recruited without a licenseKauthority si+ individuals to be sent to
Porea.
$abais and @o were arrested while "orneas remained at
large. DT$ convicted them of syndicated illegal recruitment.
$abais# appealed the decision contending that she was a mere
employee of DSE and should not be held liable for illegal
recruitment. She was just running the errands of her boss#
"orneas.

Atty 8oltaire !uano
<ase 'ssignment
eople vs <abais
Duling The S$ held $abais liable to wit

G++ n employee of a company or corporation
engaged in illegal recruitment may be held liable
as principal# together with his employer# if it is
shown that he actively and consciously
!1
participated in illegal recruitment. Decruitment is
?any act of canvassing# enlisting# contracting#
transporting# utili)ing# hiring or procuring worers#
and includes referrals# contract services# promising
or advertising for employment# locally or abroad#
whether for pro*t or not ,rovided# That any person

or entity which# in any manner# o&ers or promises
for a fee employment to two or more persons shall
be deemed engaged in recruitment and
placement.? In this case# evidence showed that
accused(appellant was the one who informed
complainants of job prospects in Porea and the
re%uirements for deployment. She also received
money from them as placement fees. ll of the
complainants testi*ed that they personally met
accused(appellant and transacted with her

regarding the overseas job placement o&ers.

In the case of ,eople vs 9amboa# the accused contended

that she did not give a misrepresentation to the applicant
that she can send them abroad. @owever# the @igh $ourt
was %uic to rule that it was not re%uired that there was a
misrepresentation. It was enough that the accused gave
an impression that she can send them abroad for wor.

Atty 8oltaire !uano
<ase 'ssignment
eople vs :amboa
"acts ccused 9amboa was an oce assistant in a recruitment

agency in Ermita Fanila. The agency operated without the
re%uired license. n entrapment operation was conducted by the
tas force of nti(Illegal Decruitment leading to her arrest.

Atty 8oltaire !uano
<ase 'ssignment
eople vs :amboa
9amboa posits that she is merely a cler who processes

the papers at the oce. She interposed the defense of denial# as
well as that she herself was an applicant for placement abroad.
,eople countered that 9amboa herself conducted recruitment and
placement activities. 9amboa was also not licensed by the ,:E
to conduct said recruitment.
Issue 6hether or not 9amboa# being a mere oce cler# may be

made liable for illegal recruitment activities
Duling The S$ held 9amboa liable to wit
G++ ccused(appellant -ourdes 9amboa was the

oce assistant who answered the %ueries of
applicants and performed clerical wor. $onspiracy
to defraud aspiring overseas contract worers was
evident from the acts of the malefactors whose
conduct before# during and after the commission of
the crime clearly indicated that they were one in
purpose and united in its e+ecution. irect proof of
previous agreement to commit a crime is not
necessary as it may be deduced from the mode
and manner in which the o&ense was perpetrated

or inferred from the acts of the accused pointing to
a joint purpose and design# concerted action and
community of interest. ++H
G++ t any rate# the lac of criminal intent
on the part of an accused ( assuming e+(gratia
argumenti that accused(appellant was indeed
unaware of the illegal nature of the recruitment
business of her co(accused ( is hardly a defense in
the prosecution for illegal recruitment. It must be
emphasi)ed that Illegal Decruitment in -arge
Scale penali)ed under The Figrant 6orers and


Atty 8oltaire !uano
<ase 'ssignment
eople vs :amboa
G++ Suce it to say that an illegal recruiter

need not e+pressly represent to the victim that she
has the ability to send worers abroad. It is enough
that she gives the impression of her ability to enlist
worers for job placement abroad in order to
induce them to tender payment of fees# as what
accused(appellant had done to the complainants in

+n the case <eople (s Goce' the Supreme /ourt reiterated

the same rulin& from <eople (s Gam$oa, +t was the
makin& of impression that is enou&h to 0ustify con(iction
of ille&al recruitment,

Atty 8oltaire !uano
<ase 'ssignment
eople vs =pouses :oce
"acts 2ellie gustin was charged with syndicated and llarge

scale illegal recruitment along with spouse an and -oma 9oce.
gustin contended that she merely introduced the applicants to
the spouses and did not participate directly in the recruitment
activities. She posits that there was no conspiracy to recruit.
Issue 6:2 gustin actively and directly recruited applicants for

employment abroad.
Duling The Supreme $ourt held that the act of introducing is

included in the de*nition of recruitment as maing referrals# to
wit
G++ referral is the act of passing along or
forwarding of an applicant for employment after an
initial interview of a selected applicant for
employment to a selected employer# placement
ocer or bureau. There is illegal recruitment
when one gives the impression of having the ability
to send a worer abroad.? It is undisputed that
appellant gave complainants the distinct
impression that she had the power or ability to

Atty 8oltaire !uano
<ase 'ssignment
eople vs :allardo
"acts Demedios Falapit# along with 2enita 9allardo# was charged

with large(scale illegal recruitment. Falapit contended that she
did not convince nor promise the applicants any employment
abroad nor did she accept payments from them.
Issue 6:2 Demedios Falapit committed any act of illegal

recruitment.
Duling The Supreme $ourt convicted Falapit of large(scale illegal

recruitment. It held
G++ # the evidence against accused(appellant has

established beyond a shadow of doubt that she
actively collaborated with co(accused 9allardo in
illegally recruiting the complainants in this
case. s correctly pointed out by the trial court#
the private complainants in this case would not
have been induced to apply for a job in $anada
were it not for accused(appellants information#
recruitment# and introduction of the private
complainants to her co(accused 9allardo.
Illegal recruitment is committed when it is shown

that the accused(appellant gave the private
complainants the distinct impression that she had
the power or ability to send complainants abroad

+n the case of <eople (s Alforte' the Supreme /ourt

likewise ruled that in syndicated ille&al recruitment' there
is conspiracy to $e esta$lished amon& the recruiters,

*ach person plays a de)nite role such that con(iction for
syndicated ille&al recruitment is 0usti)ed,

Atty 8oltaire !uano
<ase 'ssignment
eople vs <howdury
"acts Bulu $howdury was charged with illegal recruitment

committed in a large scale. The accused was a consultant for
$raftrade :verseas evelopers. $howdury denied having
nowledge that the license of $raftrade has already e+pired and
that he was not registered with ,:E. @e also interposed the
defense that he was merely ful*lling his job as a consultant in the
said oce. it was in his job description to interview applicants for
abroad.
Issue 6:2 $howdury nowingly and intentionally participated in

the commission of illegal recruitment
Duling The Supreme $ourt held that $howdury was not aware of
the fact that $raftrade was no longer licensed to conduct
recruitment. Thus#
G++ The obligation to register its personnel with
the ,:E belongs to the ocers of the agency. Q'!R 
mere employee of the agency cannot be e+pected
to now the legal re%uirements for its operation.
The evidence at hand shows that accused(
appellant carried out his duties as interviewer of
$raftrade believing that the agency was duly

licensed by the ,:E and he# in turn# was duly
authori)ed by his agency to deal with the
applicants in its behalf. ccused(appellant in fact
con*ned his actions to his job description. @e
merely interviewed the applicants and informed
them of the re%uirements for deployment but he
never received money from them. Their payments
were received by the agency4s cashier# Mosephine

& +lle&al Recruitment (s *stafa
D 100!!# '> '<5 '?">1>: "@!31< '<5 >A.

;02
Atty 8oltaire !uano
elements of estafa were <a= that the accused defrauded

another by abuse of con*dence or by means of deceit#
and <b= that damage or prejudice capable of pecuniary
estimation is caused to the o&ended party or third
person.H
h Lia$ilities
a, Local employment a&ency
$, 7orei&n *mployer
i, Theory of +mputed Knowled&e
The theory of imputed knowled&e pro(ides
that knowled&e of matters pertainin& to
employment are ascri$ed to the principal
throu&h the a&ent,
<ase 'ssignment
=unace vs >3<
"acts ivina Fontehermo)owas deployed to Taiwan by Sunace

gency as a domestic helper. The year was for a year only but
she entered into another two year contract after the e+piration of
the original one.
Npon her arrival n Fanila# she *led a complaint against
the Sunace gency before the 2-$. She claims that she was
underpaid and was imprisoned. Sunace denied any liability on the
ground that it did not now of the e+tension. lso# the contract of
agency between Suunace and ivina was already e+tinguished.
Both the - and the $ held Sunace to be liable based on
the theory of imputed nowledge.
Issue 6hether or not the doctrine of imputed nowledge can be

applied in this case
Duling The S$ held that the doctrine of imputed nowledge was

misapplied. It was the agency who was supposed to now of the
nowledge and the same is to be ascribed to the principal.
In this case# Sunace# the agency# did not now of the
e+tension of the contract of ivina. "or the theory of imputed
nowledge to apply# the employment matters should have been
Attybe
nown to Sunace as the agency and the same should 8oltaire
the !uano
ascribed to the principal. Thus
G++ There being no substantial proof that

<ase 'ssignment
=unace vs >3<
s such# it and its GownerH cannot be held

solidarily liable for any of ivinas claims
arising from the !(year employment e+tension.
s the 2ew $ivil $ode provides# ++H
$ontracts tae e&ect only between the
parties# their assigns# and heirs# e+cept in case
w here the rights and obligations arising from
the contract are not transmissible by their
nature# or by stipulation or by provision of law.
Sunace also averred that the contract of agency between

it and ivina was impliedly revoed. s such
G++ "urthermore# as Sunace correctly points

out# there was an implied revocation of its
agency relationship with its foreign principal
when# after the termination of the original
employment contract# the foreign principal
directly negotiated with ivina and entered
into a new and separate employment contract
in Taiwan. rticle 17!/ of the 2ew $ivil $ode
i <retermination
Jurisi"tion (on!* C%'i,s o OFW

urisdiction of money claims of O7-s was (ested on La$or
Ar$iters $y (irtue of RA 32;5, This includes claims for
dama&es arisin& out of employer=employee relationship or
$y (irtue of any law or contract in(ol(in& 7ilipino workers
for o(erseas deployment' includin& actual' moral'
e%emplary and other forms of dama&es, ISection 12' RA
32;5
The p!rio to !"i! t:! "'s!s shall $e within E2

calendar days from the )lin& of the complaint which shall
commence to run upon ac#uisition $y the La$or Ar$iter of
0urisdiction o(er the respondents, I Sec 1'# Dule # The
!003 Devised Dules of ,rocedure of the 2-D$ ,

Atty 8oltaire !uano
Award in case of premature termination>

7ull reim$ursement of the O7-s placement fee with

15M interest per annumH 'n

o I t:! "ontr'"t is 2!%o5 on! *!'r- t:!
D 80/!# 1773 s'%'ri!s or t:! s:'%%

o t:! "ontr'"t !ntir!2!un!;pir!
p'i< OR portion
In case of termination of overseas o I t:! "ontr'"t 5's or on! *!'r 'n
employment without just# valid or
,or!- t:! s'%'ri!s or t:! un!;pir!
authori)ed cause as de*ned by law or
portion o t:! "ontr'"t OR t:r!! =6>
contract# the worers shall be entitled
to the full reimbursement of his
,ont:s p'* or !$!r* *!'r o t:!
placement fee with interest of twelve un!;pir! portion 5:i":!$!r is %!ss.
percent <1!= per annum# plus his
>A5" Accd& to our lecture' for this is to
salaries for the une+pired portion of
his employment contract or for three
apply' the contract was terminated after
<'= months for every year of the ser(ice of more than a year,
une+pired term# whichever is less. The followin& case are of worth to determine
the applica$ility of the pro(isions of RA 32;5
in award of money claims of preterminated
O7-s>
 @arsaman @aritime A&ency (s LR/'

Au& 1EEE
 Serrano (s Gallant @aritime Ser(ices'
@arch 522E
 Yap (s Thenamaris ShipFs @&t' 5211


SkipperFs
<*RTJ/<@(s(sSereno' 7e$ruary
8enly' Sept 52115215
D 100!!# !007
?In case of termination of overseas

employment without just# valid or authori)ed
cause as de*ned by law or contract# or any
unauthori)ed deductions from the migrant
worer4s salary# the worer shall be entitled
to the full reimbursement if his placement
fee and the deductions made with interest at
twelve percent <1!= per annum# plus his
salaries or the une#pired portion o his
employment contract or or three 6&7
months for every year of the une+pired
term# whichever is less.

Atty 8oltaire !uano
DATE OF
DATE OF WAT WAS
CASE CONTRAC TER(INAT
JUD/(EN A&&LIED W?
TITLE T DETAILS ION OF
T AND OW
E(&LO?EE
Terminated> Au&ust 1EEE RA 32;5, Because RA 32;5 was
Less than 5 eNecti(e at that time
months after Award for the /a0eras was dismissed,
-ifredo /a0eras $ein& on $oard, une%pired
@arsaman portion of the “-e a&ree with
/ontract <eriod> Sept 5' 1EE contract $ecause petitioners that Sec, 12'
@aritime
of 12 months the contract was RA 32;5' applies in the
A&ency (s
LR/ less than one case of pri(ate
year, respondent and to all
o(erseas contract
workers dismissed on or
after its eNecti(ity on 1
uly 1EE”
Antonio Serrano Terminated> 5 @arch 5;' AWARDED his The pro(ision was

months and D 522E salaries for the declared
/ontract period> days after $ein& entire une%pired UNCONSTITUTIONAL
1year on $oard portion of his $ecause it creates
employment disparity amon& the O7-
Serrano (s !> /hief Ocer @ay 5C' 1EE3 contract consistin& with less than 1 year as
Gallant $ut was
of nine months and a&ainst those for more
@aritime down&raded to
59 days computed than 1 year, The
Ser(ices second ocer
pro(ision was stated to
$e a suspect
classi)cation (iolati(e of
the /onstitutional
mandate of e#ual
protection clause,
Yap (s
Thenamar /laudio Yap Terminated> @ay 92' 5211 Serrano rulin& As a &eneral rule' an
is ShipFs o( 12' 5221 was applied, unconstitutional act is
@&t /ontract <eriod> not a lawH it confers no
1 year from Au& ri&htsH it imposes no
1;' 5221 dutiesH it aNords no
protectionH it creates no
!> *lectrician
oceH it is inoperati(e as
if it has not $een passed
at all,
The doctrine of operati(e

fact ser(es as an
e%ception to the
aforementioned &eneral
rule, The doctrine is
applica$le
declarationwhen
of a
unconstitutionality will
impose an undue $urden
on those who ha(e relied
on the in(alid law,
7ollowin& Serrano' we
hold that this case
should not $e included in
Atty 8oltaire !uano
the aforementioned
e%ception, After all' it
was not the fault of
petitioner that he lost his
0o$ due to an act of
ille&al dismissal
committed $y
respondents, To rule
otherwise would $e
ini#uitous to petitioner
and other O7-s' and
would' in eNect' send a
wron& si&nal that
principalsJemployers and
recruitmentJmannin&
a&encies may (iolate an
O7-Fs security of tenure
which an employment
contract em$odies and
actually pro)t from such
(iolation $ased on an
unconstitutional
pro(ision of law,
ame> anuary 53' 7e$ 3' 5215 Serrano !octrine Since the termination
apoleon O, 1EEE as a&ainst RA occurred on anuary
!e Gracia 32;5' as 1EEE $efore the passa&e
/ontract PA@*!*! of the amendatory RA
!uration> 12 12255' we shall apply RA
months 32;5' as unamended'
/ontract !ate> without touchin& on the
1D uly 1EE3 constitutionality of
<osition> Section D of RA 12255,
9rd *n&ineer
The declaration in @arch
ame> +sidro 522E of the
L, Lata unconstitutionality of the
!uration> 15 clause “or for three
months months for e(ery year of
SkipperFs <osition> the une%pired term'
(s Sereno ;th *n&ineer whiche(er is less” in RA
/ontract 32;5 shall $e &i(en
/ontract !ate> retroacti(e eNect to the
1D April 1EE3 termination that
occurred in anuary 1EEE
ame> /harlie $ecause an
A, Aprosta unconstitutional clause
/ontract in the law confers no
!uration> 15
months ri&hts' imposes
and aNords no no duties
<osition> Third protection, The
Ocer unconstitutional
/ontract !ate> pro(ision is inoperati(e'
1D April 1EE3 as if it was not passed
into law at all,
<*RTJ/<@
Atty 8oltaire !uano
(s 8enly
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;2

Atty 8oltaire !uano
$, +lle&al Recruitment' Art 93' Sec C @i&rant -orkers Act
'rticle &;. Illegal recruitment.
ny recruitment activities# including the prohibited practices

enumerated under rticle '/ of this $ode# to be undertaen by
non(licensees or non(holders of authority# shall be deemed
illegal and punishable under rticle '7 of this $ode. The
epartment of -abor and Employment or any law enforcement
ocer may initiate complaints under this rticle.
Illegal recruitment when committed by a syndicate or in large

scale shall be considered an o&ense involving economic
sabotage and shall be penali)ed in accordance with rticle '7
hereof.
Illegal recruitment is deemed committed by a syndicate if
carried out by a group of three <'= or more persons conspiring
andKor confederating with one another in carrying out any
unlawful or illegal transaction# enterprise or scheme de*ned
under the *rst paragraph hereof. Illegal recruitment is deemed
committed in large scale if committed against three <'= or more
persons individually or as a group.
R.A. 8@4- 's ',!n! 2* RA 1@@44
Sec, 5. E"I2ITI:2S. "or purposes of this ct# illegal

recruitment shall mean any act of canvassing# enlisting#
contracting# transporting# utili)ing# hiring# procuring worers and
includes referring# contact services# promising or advertising for
employment abroad# whether for pro*t or not# when undertaen
by a non(license or non(holder of authority contemplated under
rticle 1'<f= of ,residential ecree 2o. //!# as amended#
otherwise nown as the -abor $ode of the ,hilippines. ,rovided#
that such non(license

or promises or non(holder#
for a fee employmentwho# in any
abroad to manner#
two or o&ers
more
persons shall be deemed so engaged. It shall liewise include
the following acts# whether committed by any persons# whether
a non(licensee# non(holder# licensee or holder of authority.

Atty 8oltaire !uano
<a= To charge or accept directly or indirectly any amount greater

than the speci*ed in the schedule of allowable fees
prescribed by the Secretary of -abor and Employment# or to
mae a worer 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

<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 -abor $ode;
<d= To induce or attempt to induce a worer already employed to

%uit his employment in order to o&er him another unless the
transfer is designed to liberate a worer from oppressive
terms and conditions of employment;
<e= To inLuence or attempt to inLuence any persons or entity not

to employ any worer who has not applied for employment
through his agency;
<f= To engage in the recruitment of placement of worers in jobs

harmful to public health or morality or to dignity of the
Depublic of the ,hilippines;
<g= To obstruct or attempt to obstruct inspection by the

Secretary of -abor and Employment or by his duly authori)ed
representative;
<h= To fail to submit reports on the status of employment#

placement vacancies# remittances of foreign e+change
earnings# separations from jobs# departures and such other
matters or information as may be re%uired by the Secretary
of -abor and Employment;
<i= To substitute or alter to the prejudice of the worer#

employment contracts approved and veri*ed by the
epartment of -abor and Employment from the time of
actual signing thereof by the parties up to and including the
period of the e+piration of the same without the approval of
the epartment of -abor and Employment;
<j= "or an ocer or agent of a recruitment or placement agency

to become an ocer or member of the Board of any
directly on indirectly in the management of a travel agency;

Atty 8oltaire !uano
<= To withhold or deny travel documents from applicant worers

before departure for monetary or *nancial considerations
other than those authori)ed under the -abor $ode and its
implementing rules and regulations;
<l= "ailure to actually deploy without valid reasons as

determined by the epartment of -abor and Employment;
and
<m= "ailure to reimburse e+penses incurred by the worers in

connection with his documentation and processing for
purposes of deployment# in cases where the deployment
does not actually tae place without the worer4s fault. Illegal
recruitment when committed by a syndicate or in large scale
shall be considered as o&ense involving economic sabotage.
Illegal recruitment is deemed committed by a syndicate carried
out by a group
confederating withofone
three <'= or
another. It ismore persons
deemed conspiring
committed or
in large
scale if committed against three <'= or more persons individually
or as a group.
The persons criminally liable for the above o&enses are the
principals# accomplices and accessories. In case of juridical
persons# the ocers having control# management or direction of
their business shall be liable.
c, !irect 6irin&
Arti"%! 18. Ban on direct(hiring. o employer may hire a 7ilipino
worker for o(erseas employment e%cept throu&h the Boards and
entities authori?ed $y the Secretary of La$or, !irect=hirin& $y
mem$ers of the diplomatic corps' international or&ani?ations
and such other employers as may $e allowed $y the Secretary of
La$or is e%empted from this pro(ision,
*%ceptions>
@em$ers of the !iplomatic /orps

+nternational Or&ani?ations
 Such other persons which the !OL* may authori?e
 N',! ir! or those persons who were a$le to secure
employment o(erseas without the assistance of any
recruitment or placement a&ency

Atty 8oltaire !uano
4. R!)u%'tion 'n Enor"!,!nt
a, Remittance of 7orei&n *%chan&e earnin&s
'rticle 22. Fandatory remittance of foreign e+change

earnings. It shall be mandatory for all "ilipino worers abroad to
remit a portion of their foreign e+change earnings to their
families# dependents# andKor bene*ciaries in the country in
accordance with rules and regulations prescribed by the
Secretary of -abor.
".A. ;+)
1. To protect the welfare of the families# dependents and other

bene*ciaries of :"6;
!. To ensure that the remittances are channeled through

authori)ed *nancial institutions; and
'. To help the government in their economic development

programs.
ate o emittances
 Seafarers a d Fariners 80 of

Basic salary

$onstruction companies and worers 0 of
Basic Salary
 ,rofessional 6orers 0 of
Basic Salary
 ,rofessional 6orers wKo Board U -odging 30 of
Basic Salary
 omestic U other service worers 30 of
Basic Salary
 ll other worers 30 of Basic
Salary
Demittance ,rocedure
Open Bank Acct prior to

departure,
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;;
Atty 8oltaire !uano

!irect payment to the

$ene)ciaries is allowed,
Licensed a&ency' construction'
contractor or mannin& a&ent of
the O7- must deposit to the
roo o <ompliance
 $on*rmed ban remittance form;

 uly authenticated certi*cation from the employer that
the remittance has been e&ected;
 $erti*cation a to the surrender for pesos to the ,hilippine
Baning System and
 Deceipt of the International ,ostal Foney :rder.
$, <rohi$ited Acti(ities
'rticle &. ,rohibited practices. It shall be unlawful for any

individual# entity# licensee# or holder of authority
 To charge or accept# directly or indirectly# any amount

greater than that speci*ed in the schedule of allowable
fees prescribed by the Secretary of -abor# or to mae a
worer pay any amount greater than that actually received
by him as a loan or advance;
 To furnish or publish any false notice or information or

 To give any false notice# testimony# information or

purpose of securing a license or authority under this $ode.
 To induce or attempt to induce a worer already employed

to %uit his employment in order to o&er him to another
unless the transfer is designed to liberate the worer from
oppressive terms and conditions of employment;
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;

Atty 8oltaire !uano
 To inLuence or to attempt to inLuence any person or entity

not to employ any worer who has not applied for
 To engage in the recruitment or placement of worers in

jobs harmful to public health or morality or to the dignity of
the Depublic of the ,hilippines;
 To obstruct or attempt to obstruct inspection by the

Secretary of -abor or by his duly authori)ed
representatives;
 To fail to *le reports on the status of employment#

placement vacancies# remittance of foreign e+change
earnings# separation from jobs# departures and such other
matters
of -abor.or information as may be re%uired by the Secretary
 To substitute or alter employment contracts approved and

veri*ed by the epartment of -abor from the time of actual
signing thereof by the parties up to and including the
periods of e+piration of the same without the approval of
the Secretary of -abor;
 To become an ocer or member of the Board of any

directly or indirectly in the management of a travel agency;
and
 To withhold or deny travel documents from applicant

considerations other than those authori)ed under this $ode
and its implementing rules and regulations.
c, Re&ulatory and 8isitorial <owers of the Secretary
'rticle &&. Deports on employment status. 6henever the

public interest re%uires# the Secretary of -abor may direct all
persons or entities within the coverage of this Title to submit a
report on the status of employment# including job vacancies#
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;C

Atty 8oltaire !uano
details of job re%uisitions# separation from jobs# wages# other

terms and conditions and other employment data.
'rticle &+. Suspension andKor cancellation of license or

authority. The Finister of -abor shall have the power to suspend
or cancel employment
overseas any license foror authority
violation to
of recruit
rules andemployees for
regulations
issued by the Finistry of -abor# the :verseas
Employment evelopment Board# or for violation of the
provisions of this and other applicable laws# 9eneral :rders and
-etters of Instructions.
'rticle &%. Degulatory power. The Secretary of -abor 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 authori)ed to issue orders and promulgate
rules and regulations to carry out the objectives and implement
the provisions of this Title.
'rticle &). isitorial ,ower. The Secretary of -abor or his duly

authori)ed representatives may# at any time# inspect the
premises# boos of accounts and records of any person or entity
covered by this Title# re%uire it to submit reports regularly on
prescribed forms# and act on violation of any provisions of this
Title.
d, <enalties for +lle&al Recruitment
&!n'%t* or Si,p%! I%%!)'% R!"ruit,!nt#
 +mprisonment of not less than 15 yrs and 1 day to

not more than 52 yrsH and
 7ine of not less than 1@ to not more than 5@,
&!n'%t* or I%%!)'% R!"ruit,!nt Constitutin) E"ono,i"

S'2ot')!>
+mprisonment of not less than 15 yrs and 1 day to


not more than 52 yrsH and

7ine of not less than 1@ to not more than 5@,
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;D

Atty 8oltaire !uano
e, &'*,!nt o C%'i,s o OFWs in "'s! o i%%!)'%

t!r,in'tion
RA 32;5 pro(ides that the in case of ille&al termination of

O7-' the award shall $e>
Republic of the Philippines

DEPARTMENT OF LABOR AND EMPLOYMENT
Intramuros Manila
R!LE" AND RE#!LATION" #O$ERNIN# PRI$ATE

RE%R!ITMENT AND PLA%EMENT A#EN%Y
FOR LO%AL EMPLOYMENT
By virtue of the authority vested in the Secretary of Labor and Employment under Article 25 of the Labor
Code of the Philippines, as amended, the followin revised rules and reulations are hereby promulated
to overn and reulate the activities of all individuals and entities enaed in the recruitment and
placement of persons for local employment!
Rule I
DEFINITION" OF TERM"
"E%TION &' Definition of Terms

a! Department " refers to the #epartment of Labor and Employment!
b! "ecretar( " refers to the Secretary of Labor and Employment!
c! Bureau " refers to the Bureau of Local Employment!
d! Re)ional Office " refers to the $eional %ffices of the #epartment!
e! District*Pro+incial Office " refers to the e&tension offices of the #epartment!
f! Re)ional Director " refers to the #irector of the $eional %ffice!
! Pri+ate Recruitment an, Placement A)enc( -PRPA. or A)enc( " refers to any
individual,' partnership, corporation or entity enaed in the recruitment and placement of
persons for local employment!
h! PRPA Branch " refers to any e&tension office of a licensed P$PA!
i! Representati+e " refers to a person actin as an aent of a licensed P$PA reistered with
the $eional %ffice and ranted Authority in the recruitment of persons for local
employment!
(! Recruitment an, Placement " refers to any act of canvassin, enlistin, contractin,
transportin, utili)in, hirin or procurin wor*ers, and includes referrals, contract
services, promisin or advertisin for local employment, whether for profit or not+
Atty 8oltaire !uano
provided, that any person or entity which in any manner, offers or promises employment
for a fee, to two or more persons shall be deemed enaed in recruitment and lacement!
*! Recruit " refers to any individual promised, contracted, or enlisted for employment for a
fee!
l! License " refers to the certificate issued by the #epartment authori)in an individual,
partnership, corporation, or entity to operate a private recruiment and placement aency!
m! Authorit( to Operate Branch Office " refers to the document ranted by the #epartment
authori)in the licensed P$PA to establish and operate a branch office!
n! Authorit( to Recruit " refers to the document ranted by the $eional %ffice authori)in a
person to conduct recruitment activities in the reion!
o! Licensee " refers to any person or entity duly licensed and authori)ed by the #epartment
to operate a private recruitment and placement aency!
p! Recruitment %ontract " refers to the areement entered into between a licensed P$PA or
its authori)ed representative and a recruit statin clearly the terms and conditions of the
recruitment in a lanuae *nown and understood by the recruit!
! Emplo(ment %ontract " refers to the areement entered into between the employer and
a recruit statin clearly the terms and conditions of the employment in a lanuae *nown
and understood by the recruit!
r! Placement Fee " refers to the amount chared by a P$PA from a recruit as payment for
placement services!
s! "er+ice Fee " refers to the amount chared by a P$PA from an employer as payment for
employment services!
Rule II
APPLI%ATION * RENE/AL OF LI%EN"E OF PRI$ATE RE%R!ITMENT AND PLA%EMENT A#EN%Y
"ection 0' 1ualifications 2 An applicant for a license to operate a private recruitment and placement
aency must possess the followin-
a! .ust be a /ilipino citi)en, if sinle proprietorship! 0n case of partnership or a corporation, at
least seventy1five percent 354 of the authori)ed capital stoc* must be owned and
controlled by /ilipino citi)ens+
b! .ust have a minimum networth of P266,666!66 in the case of sinle proprietorship and
partnership or a minimum paid1up capital of P566,666!66 in the case of a corporation!
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;E

Atty 8oltaire !uano
c! 7he owner, partners or the officers of the corporation must be of ood moral character and
not otherwise disualified by law+
d! .ust have an office space with a minimum floor area of fifty 56 suare meters!
"E%TION 3' Place to File application' Application for license shall be filed with the $eional %ffice
havin (urisdiction over the place where the applicant wishes to establish its main office!
"E%TION 4' Re5uirements for Application! 7he applicant for a license shall submit a duly
accomplished application form, and in support thereof, the followin reuirements-
a! A filin fee of %ne 7housand Pesos P8666!66+ if sinle proprietor+ and P9,666 if
corporation or partnership+
b! Certified copy of the Certificate of $eistration of firm or business name from the
#epartment of 7rade and 0ndustry #70, in the case of sinle proprietorship+ or a certified
copy of the Articles of Partnership or 0ncorporation duly reistered with the Securities and
E&chane Commission SEC, in the case of a partnership or a corporation+
c! A sworn statement of assets and liabilities and:or a duly audited financial statement, as
the case may be+
d! %wner;s certificate:title of office location or contract of lease of office space for at least two
2 years+
e! <B0 clearance of the applicant, or the partners in the case of a partnership or all the
officers and members of the Board of #irectors, in the case of a corporation+
f! 0ncome 7a& $eturns for the last two 2 years+
! A verified underta*in that the applicant shall-

8 not enae in the recruitment of children below 85 years of ae or place children
below 8= years old in ha)ardous occupation in accordance with $epublic Act <o!
3>86 as amended by $epublic Act <o! 3>5= and other related laws+ and
2 assume full responsibility for all claims and liabilities which may arise in connection
with the use of the license+
h! %rani)ational structure and list of all officers and personnel with their respective bio1data,
two 2 passport1si)e 0# pictures and a detailed description of their duties and
responsibilities+ and
i! Specific address and location map of the %ffice:proposed %ffice+

(! List of all authori)ed representatives, if any, who must be at least hih school raduate,
with their correspondin bio1data, two 2 passport1si)e 0# pictures, hih school diploma or
other proof of educational attainment duly authenticated, <B0 clearance and Special
Power of Attorney SPA!
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 2

Atty 8oltaire !uano
<o application shall be accepted, unless all the reuirements have been complied with!
"E%TION 6' Action on the Application'

a! ?pon receipt of the application, the $eional #irector or his duly authori)ed
representative shall evaluate the documents submitted and conduct an ocular inspection
of the applicant;s office+
b! @ithin fifteen 85 wor*in days after the ocular inspection, the $eional #irector shall act
on the application, and immediately notify the applicant of the action ta*en+ and
c! Application which do not meet the reuirements set forth in these rules shall be denied!
"E%TION 7' Postin) of %ash an, "uret( Bon,s an, Pa(ment of License Fee
Prior to the approval of the license, the applicant shall post cash and surety bonds of 7wenty1/ive
7housand Pesos P25,666!66 and %ne undred 7housand Pesos P866,666!66 respectively, valid for
two 2 years and then pay a license of Si& 7housand Pesos P>,666!66! 7he bonds shall answer for all
valid and leal claims arisin from the illeal use of the license and shall li*ewise uarantee compliance
with the provisions of the Labor Code and its implementin $ules! 0n case of loss of license, the licensee
shall pay Si& undred Pesos P>66!66 as payment for the issuance of a certified copy of the license
upon presentation of proof of loss!
"E%TION 8' Publication! 7he Aency shall publish once in a newspaper of eneral circulation the
license number of the aency, names and pictures of authori)ed representatives within fifteen 85 days
from the issuance of the license and shall submit a copy of said publication to the #epartment!
"E%TION 9' $ali,it( of the License! 7he license shall be valid all over the Philippines for two 2 years
from the date of issuance, upon submission of proof of publication unless sooner suspended, cancelled or
revo*ed by the $eional #irector!
"E%TION :' Non2transferabilit(! <o license shall be transferred, conveyed or assined to any other
person or entity!
"E%TION &;' Displa( of License! 7he oriinal license or a copy shall be displayed conspicuously at all
times in the office premises of the P$PA!
"E%TION &&' Rene<al of License! An application for renewal of license shall be filed not later than thirty
96 days before e&piration of the same! <o aency shall be allowed to renew its license if it has been

Atty 8oltaire !uano
convicted by the reular courts for violation of the Labor Code, as amended, and its implementin $ules,
or if its license has been previously revo*ed!
"E%TION &0' Re5uirements for Rene<al! 7he Aency shall submit its e&istin license toether with the
reuirement specified in Section  of this $ules!
"E%TION &3' %han)e of O<nership! Any Aency which desires to transfer ownership shall surrender its
license to the issuin $eional %ffice!
"E%TION &4' %han)es of Business A,,ress! An Aency which desires to transfer to a new business
address shall notify the $eional %ffice which issued the license at least thirty 96 wor*in days prior to
the intended date of transfer! 0t shall li*ewise notify the $eional %ffice which has (urisdiction over the
new business address and submit a s*etch of the new office and a copy of the contract of lease, if any!
R!LE III
#RANTIN#*RENE/AL OF A!T=ORITY TO RE%R!IT RE%R!ITMENT PRO%ED!RE PLA%EMENT
AND OT=ER RELATED A%TI$ITIE"
"E%TION &6' Authorit( to Recruit! A licensed Aency or its authori)ed representative shall secure an
authority to recruit from the $eional %ffice havin (urisdiction over the place where recruitment activities
will be underta*en! Such authority shall be coterminous with the license unless sooner revo*ed:cancelled
by the issuin $eional %ffice or terminated by the Aency!
"E%TION &7' Documents Re5uire,! 7he followin documents shall be submitted by the
applicant:aency for the issuance:renewal of an Authority to $ecruit-
a! Letter reuest by the aency+
b! Copy of current license+
c! Certification under oath of licensee of the proposed recruitment activities of the
representative+
d! <B0 clearance and bio1data of the representative with two 2 0# pictures+
e! Clearance from previous aency, if applicable+ and

f! Previous Authority to $ecruit, in case of renewal!
<o application shall be accepted unless all the reuirements have been complied with!

Atty 8oltaire !uano
"E%TION &8' Action on the Application for the Issuance*Rene<al of an Authorit( to Recruit
a! @ithin ten 86 wor*in days from receipt of complete documents, the $eional #irector
shall act on the application+
b! 0n case of denial, the $eional #irector shall state the reasons for denial+ A new
application:renewal may be denied on any of the followin rounds-
- non compliance with the reuirements+
- applicant;s record of unresolved illeal recruitment case+ or
- presence of any pendin case aainst the applicant and:or the aency
c! ?pon approval of application:renewal, the applicant shall pay a fee of P8,566!66 to the
$eional %ffice concerned!
"E%TION &9' Recruitment b( Representati+e! %nly representatives duly authori)ed to recruit and
whose names are reistered with the $eional %ffice can enae in recruitment activities!
"E%TION &:' Termination of Authorit( of Representati+es! 7he authority of the representatives may
be revo*ed or terminated by the Aency or cancelled by the issuin $eional %ffice! 7he Aency shall
publish in a newspaper of eneral circulation the names and pictures of representatives whose authority
have been revo*ed or terminated and the $eional %ffice shall be furnished a copy of the said
publication! 7he $eional %ffice shall *eep a record of the authorities issued, revo*ed or terminated and
furnish copy to the Bureau!
"E%TION 0;! "teps to be follo<e, in the Recruitment of Persons! 7he followin procedures shall be
followed by the licensed Aency or its duly authori)ed representative in the recruitment of persons+
a! 7he Aency or its duly authori)ed representative shall present to the PES%, Provincial
and #istrict %ffice where the recruitment activity is to be underta*en, copy of e&istin
license, and oriinal copy of authority to recruit issued by the $eional %ffice
concerned!
b! 7he representative shall reuire the recruit to submit a copy each of the followin-
8 birth certificate from the local civil reistrar+ and
'14 medical certificate issued by a goernment physician or by a reputable priate
medical practitioner.
c! 7he Aency or its authori)ed representative and the recruit shall enter into a recruitment
contract, duly notari)ed a copy of which shall be submitted to the $eional %ffice where
recruitment activity was underta*en!
d. 7he Aency or its duly authori)ed representative shall submit a list of the names and
addresses of its recruits, toether with copy of documents specified in procedure b

Atty 8oltaire !uano
above, to the $eional %ffice or the appropriate Provincial:#istrict %ffice where

recruitment was underta*en for appropriate authentication and alidation% copies of
these documents shall be furnished the *egional :ffice of destination of the recruit.
e! After the recruitment activity, the $eional %ffice of oriin shall issue a certification to
the Aency or its duly authori)ed representative that the recruitment activity has been in
accordance with this $ule, copy furnished the .arine Police:Coast uard:Philippine
<ational Police, as the case may be!
f! Provide the recruit with a stamped envelope and form indicatin the name, address of
recruit and the name, address, telephone number of his:her employer to be sent to the
parent!
! Prior to deployment the $eional %ffice of oriin shall notify the $eional %ffice of
destination of the arrival of the recruits, and the latter shall see to it that the terms and
conditions of the recruitment contract are followed strictly!
"E%TION 0&' Replacement of /or>er /ithout %ost! An employer shall be entitled to replace a wor*er
without additional cost only once, within one 8 month from the first day the wor*er reported for wor*, on
any of the followin rounds-
a! 7he wor*er is found to be sufferin from an incurable or contaious disease as certified
by a competent physician+
b! 7he wor*er is physically or mentally incapable of discharin the minimum normal
reuirements of the (ob, as specified in the employment contract+ or
c! 7he wor*er abandons the (ob, voluntarily resins, commits theft or any other pre(udicial
to the employer!
"E%TION 00' Refun, of "er+ice Fee! 7he employer is entitled to a refund of seventy five 354 percent
of the service fee if the Aency failed to provide a replacement after a lapse of one 8 month from receipt
of the reuest for the replacement based on any of the rounds enumerated in the precedin Section!
"E%TION 03' Forfeiture of Ri)hts' 7he employer is deemed to have forfeited his riht for a replacement
without cost or refund of the service fee, if he failed to avail of the same within one 8 month from the
date of enaement of the wor*er!
R!LE I$
E"TABLI"=MENT OF BRAN%= OFFI%E*RENE/AL OF A!T=ORITY TO OPERATE BRAN%=
OFFI%E
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;

Atty 8oltaire !uano
"E%TION 04' Establishment of Branch Office! 7he application to establish a branch office shall be filed
with the $eional %ffice havin (urisdiction over the place where the branch office is to be established!
"E%TION 06' Re5uirements! A licensee who desires to establish a branch office shall submit the
followin reuirements-
a! /ilin fee of %ne 7housand Pesos P8666!66+
b! Certified copy of the current license+
c! %rani)ational structure of the branch office, includin duly notari)ed appointments+
d! <B0 clearance, bio1data and two 2 passport1si)e 0# pictures of the branch manaer
and staff members+
e! Certification that the branch office has office space with a minimum floor area of fifty
56 suare meters+
f! Certification that the licensee has no pendin case with the $eional %ffice issuin the
license or where it has established branch office+ and
! List of all authori)ed representatives, if any, who must be at least hih school raduate,
with their correspondin bio1data, two 2 passport1si)e 0# pictures, hih school
diploma or other proof of educational attainment, <B0 clearance and Special Power of
Attorney SPA issued by the licensee!
<o application shall be accepted, unless all the reuirements have been complied with!
"E%TION 07' Action on the Application!

a! ?pon receipt of the application, the $eional #irector or his duly authori)ed
representative shall evaluate the documents submitted and conduct an ocular
inspection of the P$PA branch!
b! @ithin fifteen 85 wor*in days from the date of filin, the $eional #irector shall either
deny or approve the application and immediately notify the application of the action
ta*en!
"E%TION 08' Postin) of A,,itional "uret( Bon, an, Pa(ment of Re)istration Fee' Prior to approval
of the authority to establish a branch office, the licensee:applicant shall post an additional surety bond of
/ifty 7housand Pesos P56,666!66 and pay a reistration fee of 7hree 7housand Pesos P9,666!66!
0n case of loss, the licensee shall pay Si& undred Pesos P>66!66 as payment for the issuance of a
certified copy of the authority upon presentation of proof of loss!
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 

Atty 8oltaire !uano
"E%TION 09' $ali,it( of the Authorit(! 7he authority to operate branch office shall be coterminous with
the validity of the license of the Aency sub(ect for renewal upon submission of the oriinal authority and
reuirements provided for under Section 25 hereof as well as the oriinal authority!
R!LE $
PLA%EMENT FEE "ER$I%E FEE AND OT=ER %=AR#E"
"E%TION 0:' Placement Fee! A licensed P$PA may chare wor*ers a placement fee which shall not
e&ceed twenty percent 264 of the wor*er;s first month;s basic salary+ in no case shall such fee be
chared prior to the actual commencement of employment!
"E%TION 3;' "er+ice Fee! A licensed P$PA may chare employers a service fee which shall not
e&ceed twenty percent 264 of the annual basic salary of the wor*er! 0n no case shall the service fee be
deducted from the wor*er;s salary!
"E%TION 3&' Transportation! 7ransportation e&penses of the wor*er from the place of oriin to the
place of wor* shall be chared aainst the employer, and shall in no case be deducted from the wor*er;s
salary!
"E%TION 30' Issuance of Official Receipt! All payments made or fees collected by a licensed Aency
shall be covered by an official receipt indicatin the amount paid and the purpose of such payment!
R!LE $I
"!"PEN"ION RE$O%ATION*%AN%ELLATION OF LI%EN"E
"E%TION 33' #roun,s for "uspension of a License! Any of the followin shall constitute a round for
suspension of a license-
a! violation of any of the provisions of Sections 3,89, or 8 of these $ules+
b! violation of #epartment %rder <o! 28, series of 8DD reardin publication of (ob
vacancies+
c! non1issuance of official receipt for every fee collected+
d! non1submission of monthly report as provided in Section >8 of these $ules+

e! charin or acceptin directly or indirectly, any amount in e&cess of what is prescribed
by these $ules+
f! disreard of lawful orders and notices issued by the Secretary or his duly authori)ed
representative+ or
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C

Atty 8oltaire !uano
! non1observance of the procedures on recruitment as stated in Section 26 of these

$ules!
"E%TION 34' #roun,s for %ancellation*Re+ocation of a License! Any of the followin shall constitute
a round for the cancellation:revocation of license-
a! violation:s of the conditions of license+
b! enain an act or acts of misrepresentation for the purpose of securin a license or
renewal thereof+
c! continuous operation despite due notice that the license has e&pired+
d! incurrin two 2 suspensions by a P$PA based on final and e&ecutory orders+
e! enain in labor1only contractin as defined in Article 86> of the Labor Code, as
amended+
f! recruitment and placement of wor*ers in violation of $epublic Act <o! 3>86 as amended
by $epublic Act <o! 3>5=+

! transferrin, conveyin or assinin of license:authority to any person or entity other
than the one in whose favor it was issued+
h! violation of any of the provisions, particularly, Article 9 of the Labor Code, as amended,
and its 0mplementin $ules and $eulations!
"E%TION 36' Table of Penalties an, Fines' 7he commission of any of the aforecited rounds for
suspension, cancellation:revocation shall merit imposition of fine and penalties provided in the herein
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- D

Atty 8oltaire !uano

Atty 8oltaire !uano
$ules and $eulations -

7he Aency is (ointly and severally liable to any violation or illeal act committed by its
branch!
R!LE $II
=EARIN# AND DI"PO"ITION OF RE%R!ITMENT $IOLATION AND RELATED %A"E"
"E%TION 37' %omplaints A)ainst A)enc(! Complaints based on any of the rounds enumerated under
the previous Sections aainst a licensee:and or the authori)ed representative:s shall be filed in writin
and under oath with the $eional:#istrict:Provincial %ffice havin (urisdiction over the place where the
P$PA:Branch %ffice is located, or where the prohibited act was committed, or at complainant;s place of
residence, at the option of the complainant+ provided, that the $eional %ffice which first acuires
(urisdiction over the case shall do so to the e&clusion of the others!
"E%TION 38' %aption an, Title! 7he complaint shall be filed in accordance with the followin caption-
$epublic of the Philippines

#epartment of Labor and Employment
$eional %ffice <o! 

Province:#istrict
0n the .atter of Fiolation of
$ecruitment $ules and $eulations:Pertinent
$eulations 0mplementin the Labor
Code, as Amended
1 versus 1 $% Case <o! P$PA yr:mo:no! $F

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- E
Atty 8oltaire !uano
$espondent:s!
G111111 111111 1111111 1&
11
"E%TION 39' %ontents of %omplaint! All complaints shall be under oath to be administered by any
officer authori)ed by law and must contain, amon others the followin-
a! 7he name:s and address:es of the complainant:s+
b! 7he name:s and address:es of the respondent:s+
c! 7he nature of the complaint+
d! 7he substance, cause:rounds of the complaint+
e! @hen and where the action complained of happened+
f! 7he amount of claim, if any+ and
! 7he relief:s souht!
All pertinent papers or documents in support of the complaint must be attached whenever possible!
"E%TION 3:' Doc>et an, Assi)nment of %ases! Complaints duly received shall be doc*eted and
numbered and shall be scheduled for hearin within ten 86 wor*in days!
"E%TION 4;' Ans<er*%ounter2Affi,a+it! ?pon receipt of the complaint, the $eional #irector shall
issue show cause order directin the respondent:s to file a verified Answer:Counter1Affidavit within ten
86 wor*in days and copy furnished the complaint:s and not a .otion to #ismiss, incorporatin therein
all pertinent documents in support of its defense, and attachin thereto proof of service of a copy thereof
upon the complaint:s! 7he answer shall be deemed filed on the date of receipt stamped thereon, if filed
personally, or on the date indicated in the reistry receipt, if filed by reistered mail!
"E%TION 4&' Motion for E?tension! %nly one motion for e&tension of time to file answer shall be
allowed! 7he $eional #irector, upon receipt of such motion may, upon meritorious rounds, rant a non1
e&tendible period not e&ceedin ten 86 wor*in days! $ulins of the $eional #irector on motions for
e&tension shall be sent by personal service or by reistered mail!
"E%TION 40' Failure to File Ans<er ! /ailure to file an answer:counter affidavit will constitute a waiver
on the part of the respondent!
"E%TION 43' "er+ice of "ubpoena Duces Tecum an, "ubpoena A, Testifican,um' 7he $eional
#irector shall issue sub1poena or sub1poena duces tecum! 7he process server who personally served the
subpoena duces tecum and:or subpoena ad testificandum, notice, order, resolution or decision shall
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C2

Atty 8oltaire !uano
submit his return within five 5 wor*in days from the date of his service thereof, statin leibly in his
return his name, the mode:s of service, the name:s of the other person:s served and the date:s of receipt!
0f no service was effected, the servin officer shall state the reason therefor! 7he return shall form part of
the records of the case!
"E%TION 44' Failure or Refusal to Obe( "ubpoena Duces Tecum an, "ubpoena A, Testifican,um !
7he license of an aency who fails or refuses to obey the subpoena duces tecum:subpoena ad
testificandum, shall be suspended until compliance of the directive of the $eional #irector! 7his is
without pre(udice to the outcome of the investiation wherein the proper penalty may be imposed!
"E%TION 46' Proof an, %ompleteness of "er+ice! 7he return is prima facie proof of the facts stated
herein! Service by reistered mail is completed upon receipt of the addressee or aent+ but if the
addressee or aent fails to claim his mail from the post office within five 5 wor*in days from date of last
notice of the postmaster, service shall ta*e effect after such time!
"E%TION 47' Authorit( to Initiate %larif(in) 1uestions! At any stae of the proceedins and prior to
the submission by the parties of the case for resolution, the $eional %ffice may initiate clarificatory
uestions to further elicit facts or information, includin but not limited to the subpoena of relevant
documentary evidence!
"E%TION 48' "ummar( @u,)ment! Should the $eional #irector find upon consideration of the
answers, counter1affidavits and evidence submitted, that r esolution:decision may be rendered thereon,
the case shall be deemed submitted for decision!
"E%TION 49' Nature of Procee,in)s! 7he proceedins before the $eional %ffice shall be non1litiious
in nature! Sub(ect to the reuirements of due process, the technicalities of and procedure and rules
obtainin in the courts of law shall not strictly apply thereto! 7he $eional #irector may avail himself of all
reasonable means to ascertain the facts of the case, includin ocular inspection, where appropriate, and
e&amination of informed persons!
"E%TION 4:' Effects of /ith,ra<al*Desistance! 7he withdrawal:desistance of the complainin witness
shall not bar the $eional %ffice from proceedin with the investiation on recruitment violation:s! 7he
$eional %ffice shall act on the case as may be merited by the results of the investiation and impose
such penalties on the errin Aency as may be deemed appropriate!

Atty 8oltaire !uano
"E%TION 6;' Effects of "ettlement! At any stae of the proceedins, the parties may submit a
Compromise Areement sub(ect to the approval of the $eional %ffice!
"E%TION 6&' Resolution of the %ase! 7he conduct of hearins shall be terminated within fifteen 85
wor*in days from the first scheduled hearin! 7he $eional #irector shall resolve the case within ten
86 wor*in days from the time the case is deemed submitted for decision!
"E%TION 60' "uspension of License Pen,in) In+esti)ation ! Pendin investiation of a complaint

leadin to the cancellation:revocation of license, the $eional #irector, who is hearin the case, may
suspend the license of the P$PA concerned on any of the followin rounds-
a! 7here e&ist reasonable rounds to believe that the continued operation of the Aency
will lead to further violation or e&ploitation of the wor*ers bein recruited+
b! /ailure of the licensed P$PA to submit its Position Paper:Answer on the complaint
within the prescribed period+

c! /ailure to attend the hearin despite due notice called by the $eional %ffice+
d! /ailure or refusal to obey subpoena duces tecum and subpoena ad testificandum
issued by the $eional #irector+ and
e! "rima facie evidence shows that the Aency has violated and continues to violate any
of the provisions of the Labor Code, as amended, its 0mplementin
$ules and $eulations on the recruitment and placement of wor*ers!
"E%TION 63' "uspension* %ancellation of License! 1 7he $eional #irector who issued the license
shall have the power to suspend: cancel the license of the Aency!
"E%TION 64' Effects of Or,ers of "uspension*%ancellation or Re+ocation' " An order of

suspension:cancellation or revocation shall have the effect of suspendin or terminatin all activities of
the Aency which fall under the definition of recruitment and placement! 7he $eional %ffice may see*
the assistance of other overnment institutions, aencies or offices to ensure that suspension or
cancellation orders are implemented!
"E%TION 66' "uppletor( Application of the Rules of %ourt! 0n the absence of any applicable
provisions of these $ules, the pertinent provisions of the $ules of Court may be applied in a suppletory
character!

Atty 8oltaire !uano
"E%TION 67' Appeal! #ecision of the $eional #irector is appealable to the Secretary within ten 86
wor*in days from receipt of a copy of the order, on any of the followin rounds-
a! 0f there is prima facie evidence of abuse of discretion on the part of the $eional
#irector+
b! 0f the decision and:or award was secured throuh fraud or coercion+
c! 0f made purely on uestions of law+ and:or
d! 0f serious errors in the findins of facts are raised which, if not corrected, would cause
rave or irreparable damae or in(ury to the appellant! 7he appeal shall be filed with the
%ffice of the Secretary, copy furnished the $eional %ffice, issuin the %rder of
suspension or cancellation:revocation!
7he Secretary shall have thirty 96 wor*in days from receipt of the records to resolve the appeal! 7he
decision of the Secretary shall be final and inappealable!
R!LE $III
%E""ATION OF OPERATION OF T=E A#EN%Y*BRAN%=
"E%TION 68' Notice of %losure of the A)enc( or its Branch' 7he Aency or its branch office which
ceases to operate prior to the e&piration of its license or its authority to operate shall notify the $eional
%ffice concerned, statin the (ustification for such closure, accompanied by the oriinal receipt of cash
bond and the license, or the authority to operate, as the case may be!
"E%TION 69' Refun, of %ash Bon,! An Aency which voluntarily surrender its license shall be entitled
to the refund of its deposited cash bond only after postin a surety bond of similar amount from a bondin
company accredited by the 0nsurance Commission! 7he surety bond is valid for three 9 years from
e&piration of the license!
R!LE I
IN"PE%TORATE AND ENFOR%EMENT F!N%TION"
"E%TION 6:' Inspection Function' 7o ensure the effective supervision and reulation of the activities of
all licensees, the $eional #irector or his duly authori)ed representative shall have access to the
licensee;s records and premises at any time of the day or niht whenever wor* is bein underta*en
therein, to determine violation or may aid in the enforcement of these $ules!
"E%TION 7;' /rit of E?ecution! 7he $eional #irector shall issue writs of e&ecution to the appropriate
authority for the enforcement of his:her %rders!
"E%TION 7&' "ubmission of Monthl( Reports! All Aencies shall submit to the $eional %ffice, copy
furnished the Bureau, not later than the 5 th wor*in day of every month reports verified and confirmed by

Atty 8oltaire !uano
the $eional #irector or his duly authori)ed representative of their recruitment and placement activities
durin the precedin month!
R!LE 
REPEALIN# %LA!"E AND EFFE%TI$ITY DATE
"E%TION 70' Repealin) %lause' All rules and reulations, uidelines and issuances inconsistent
herewith are repealed or modified accordinly!
"E%TION 73' Effecti+it(! 7he provisions of these $ules and $eulations shall ta*e effect fifteen 85
days after its publication in two 2 newspapers of eneral circulation!
#one in the City of .anila this 5th day of Hune 8DD3!

-"),'. LEONARDO A' 1!I"!MBIN#
Secretary
Refer to <O*A Rules for Land=Based O(erseas -orkers

Refer to <O*A Rules for Sea=Based O(erseas -orkers
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C;

Atty 8oltaire !uano
C. LABOR STANDARDS
Art 84 o t:! L'2or Co! pro$i!s t:'t t:! pro$isions o Boo III
s:'%% 'pp%* to !,p%o*!!s on '%% !st'2%is:,!nts 'n un!rt'in)s
5:!t:!r or prot o not- 2ut not to#
1, Go(ernment employees of GO//s with ori&inal charterH

7or GO//s with ori&inal charter' the /i(il Ser(ice /ommission

has the 0urisdiction,
5, @ana&erial *mployees Iincludin& super(isory employeesH

Those whose primary duty consists of the mana&ement of the

esta$lishment in which they are employed or of a department

or su$di(ision thereofH
They customarily and re&ularly direct the works of two or more

employeesH
They ha(e the authority to hire or )re employees of lower rankH

or their su&&estions and recommendations as to hirin& and

)rin& and as to the promotion or any other chan&e of status of
other employed' are &i(en particular wei&ht 6ule (, =ec 2b,
1mplementing ules and egulations o !ook 111, 3abor
<ode7
Sup!r$isor* !,p%o*!!s 'r! D!!,! ('n')!ri'% E,p%o*!!s

in $i!5 o Art 84 i#
 The primary duty consists of the performance of work directly

related to mana&ement policies of their employerH
 /ustomarily and re&ularly e%ercise discretion and independent

0ud&mentH and
Ii Re&ularly and directly assist a proprietor or a

mana&erial employee whose primary duty consists of
the mana&ement of the esta$lishment in which he is
employed or su$di(ision thereofH or
Iii e%ecute under &eneral super(ision work alon&

speciali?ed or technical lines re#uirin& special
trainin& e%perience or technical lines re#uirin&
special trainin&' e%perience' or knowled&e' or
Iiii e%ecute' under &eneral super(ision' special

assi&nments and tasks,
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C

Atty 8oltaire !uano
 -ho do not de(ote more than 52M of their hours worked in a

work week to acti(ities which are not directly and closely
related to the performance of the work descri$ed in para&raphs
I1' I5' and I9 a$o(e, 6ule (, =ec 2c, 1mplementing ules
and egulations o !ook 111, 3abor <ode7
9, 7ield <ersonnelH
“7ield personnel” is not merely concerned with the location where

the employee re&ularly performs his duties $ut also with the fact
that the employeeFs performance is unsuper(ised $y the employerQ
whose actual hours of work in the )eld cannot $e determined $y
reasona$le certainty, 9'utobus 5ransport =ys, 1nc vs !autista,
?ay (%, 200+
“7ishermen employed $y petitioner ha(e no choice $ut to remain on

$oard its (essel, Althou&h they perform non=a&ricultural work away
from petitionerFs $usiness oces' the fact remains that throu&hout
the duration of their work teu are under the eNecti(e control and
super(ision of petitioner throu&h the (esselFs patron or master as
the LR/ correctly held, 9?ercidar /ishing <orporation vs
>3<, Act ;, (;
;, @em$ers of the family of the employee solely dependent upon him

for supportH
They are not co(ered $ecause their support may e(en e%ceed the
$ene)ts &i(en under Book +++ of the La$or /ode,
, !omestic helperJfamily dri(ers those in the personal ser(ice of the

employer and who cater to the comfort and the con(enience of his
family or householdH
Tasks are usually necessary and desira$le in the maintenance or

en0oyment of the homeH and

<ersonal comfort' con(enience and safety of the employer' as
well as of the mem$ers of the household,
C, *mployees paid $y result' piece rate workers' payaw $asis' task

$asis or $y commissionH and
The $asis of their compensation if work accomplished, The

employer has no control o(er their work

Refer to @akati 6a$erdashery (s LR/

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- CC

Atty 8oltaire !uano
D, *mployees of retail esta$lishments and ser(ice esta$lishments

employin& not more than 12 employees,
T:!s! !,p%o*!!s 'r! '%so not !ntit%! to#
• O(ertime payH
• <remium pay for rest days and holidaysH
• i&ht shift diNerentialH
• 6oliday payH
• Ser(ice incenti(e lea(eH and
• Ser(ice char&es,
1. ours o Wor
a, /o(era&e and *%clusions
Co$!r')!# All employees of esta$lishments and undertakin&s
E;"%u!# Refer to Art 35
1, Go(ernment employees of GO//s with ori&inal charterH
5, @ana&erial *mployees Iincludin& super(isory
employeesH
9, 7ield <ersonnelH
;, @em$ers of the family of the employee solely
dependent upon him for supportH
, !omestic helperJfamily dri(ers those in the personal
ser(ice of the employer and who cater to the comfort
and the con(enience of his family or householdH
C, *mployees paid $y result' piece rate workers' payaw
D, $asis' task $asis

*mployees of or $y commissionH
retail and
esta$lishments and ser(ice
esta$lishments employin& not more than 12
employees,
$, ormal 6ours of -ork

Art 86. The normal hours of work shall not e%ceed 3 hrs a day,
7or health personnel' it shall $e 3hrs a day for days if the

followin& re#uisites are met>
 /ities and @unicipalities with a population of 1@ H and
 6ospitals and clinics with at least 122 $ed capacity,
ours 5or! s:'%% 2! "o,p!ns'2%!#
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- CD

Atty 8oltaire !uano
a All time durin& which an employee is re#uired to $e on

duty or to $e at the employerFs premises or to $e
prescri$ed to $e on dutyH
$ All time durin& which an employee is suNered or
permitted to work 6=ec &, ule 1, 3<, 1, !k 1117
6=ec , ule 1, 3<, 1, !k 1117
c, *%ceptions
Art 39, *%cept where the e%i&encies of the ser(ice re#uire that
such personnel work for C days or ;3 hours' in which case they
shall $e entitled to an additional compensation of at least 92M
of their re&ular wa&e for work on the C th day,
d, -ork interrupted due to $rownouts
e, @eal Breaks
f, +dle time' waitin& time' commutin& time' tra(el time whether
paid of hours of work or not
&, O(ertime work
h, i&ht work
i, /BA pro(isions (is==(is o(ertime work
0, i&ht Shift !iNerential
k, 6oliday pay
l, Ser(ice +ncenti(e Lea(es
4. W')!s
6ages are remuneration or earnings# however designated# capable of
being e+pressed in terms of money whether *+ed or ascertained oon a
time# tas# piece or commission basis# or other method of calculating
the same# which is payable by an employer to employee under a
written or unwritten contract of employment for wor done# or for wor
to be done# or for service rendered or to be rendered. <$have) vs
2-D$=
'. No 5or - no p'* prin"ip%!

Pni(ersity of <an&asinan 7aculty Pnion (s LR/
2. Co$!r')! 'n E;"%usions
". F'"i%iti!s $s Supp%!,!nts

Supplements constitute e%tra=remuneration or special pri(ele&es
or $ene)ts &i(en to or recei(ed $y the la$orers o(er and a$o(e
their ordinary earnings or wages,

Atty 8oltaire !uano
7acilities are items of necessary e%penses for the la$orerFs and

his familyFs e%istence and su$sistence so that $y e%press
pro(ision of law' they form part of the wa&e and when furnished
$y employer are deducti$le therefrom' since they are not so
furnished' the la$orer would spend and pay for them 0ust the
same,
ote> Be prepared to $e asked for (arious e%amples
diNerentiatin& facilities from supplements,

. W')!s $s S'%'ri!s
!. W')! Distortion
-a&e distortion is a situation where an increase in the
prescri$ed wa&e rates results in the elimination or se(ere
contraction of intentional #uantitati(e diNerences in wa&e or
salary rates $etween and amon& employee &roups in an
esta$lishment as to eNecti(ely o$literate the distinctions
em$odied in such wa&e structure $ased on skills' len&th of
ser(ice or other lo&ical $ases of diNerentiation IRA CD5D'
Fetroban Employees Nnion vs 2-D$ ,
ote that wa&e distortion is a non=strikea$le issue, The

resolution for wa&e distortion issue shall $e sou&ht $y (oluntary
ne&otiation or ar$itration and not $y strikes' or lockoutsQ IRA
CD5D' Ilaw at Bulod ng Fanggagawa vs 2-D$ 
E%!,!nts o W')! Distortion I,rubaners ssoc vs ,ru Ban

U Trust $o>
1, There is hierarchy of positions with correspondin& salary
ratesH
5, Si&ni)cant chan&e in the salary rate of a lower pay class
without a concomitant increase in the hi&her oneH
9, *limination of the distinction $etween the two le(elsH and
;, The e%istence of the distortion $etween the two le(els in
the same re&ion of the country,
.CBA pro$isions $is++$is W')! Or!r- CBA "r!it'2i%it*

The /redi$ility pro(ision in -a&e Order o, C is $ased on impt
pu$lic policy' that is' the encoura&ement of employers to &rant
wa&e and allowance increases to their employees hi&her than
the minimum rates of increases prescri$ed $y the statute or
administrati(e re&ulation I,roducers ban vs 2-D$ ,
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- CE

Atty 8oltaire !uano
@y take on this> In other words# the employees have the right to

negotiate for a higher salary than what the Degional Tripartite
6age ,roductivity Board or similar agencies prescribe. 6age
:rder 2o 5 prevent the sanctioning of employers who increase
the wage of the employees without waiting for the statutory
prescribed increase in the latters salary. Dather# it encourages
the same as bargaining with the employer is a constitutional
right and that wages is included in the negotiation. In addition#
$B is the contract between the parties.
). Non+i,unition o B!n!ts
Art 122, <rohi$ition of *limination or !imunition of Bene)ts
Art 15D, on=!imunition of Bene)ts

o wa&e order issued $y any re&ional $oard shall pro(ide for
wa&e rates lower than the statutory minimum wa&e rates
prescri$ed $y the /on&ress Ias amended $y RA CD5D,
8ersus on=diminition of Bene)ts
:. Wor!rs &r!!r!n"! in "'s! o 2'nrupt"*

Art 112' Sec 12 Rule 8+++ +mplementin& Rules and Re&ulations of
Book +++
i.L'2or Co! pro$isions or 5')! prot!"tions

Art 115 = 11E
.A%%o5'2%! !u"tions 5it:out !,p%o*!!s "ons!nt

Art 119,
Gal(adores (s Tra0ano
. Attorn!*s !!s 'n Union S!r$i"! F!! in L'2or

C's!s
Art 111,
l, /riteria J 7actors for -a&e Settin&
6. R!st D'*
a, Ri&ht to -eekly Rest !ay
$, <reference of the *mployee
c, -hen work on a rest day is authori?ed

. o%i'*s
a, Ri&ht to 6oliday <ay
/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- D2
Atty 8oltaire !uano
$, *%clusions for /o(era&e
. L!'$!s
a, Ser(ice +ncenti(e Lea(e
$, @aternity Lea(e
c, <aternity Lea(e
d, <arental Lea(e
e, Lea(es for (ictims of (iolence a&ainst women
. S!r$i"! C:'r)!s
a, /o(era&e
$, *%clusions
c, !istri$ution
d, +nte&ration
7. 16t: (ont: &'* 'n ot:!r Bonus!s

a, /o(era&e
$, *%clusions ad *%emptions from /o(era&e
c, ature of the 19th @onth <ay
d, /BA (is==(is 19th @onth <ay
8. Wo,!n Wor!rs =RA 1@11>

a, !iscrimination
$, Stipulation a&ainst @arria&e
c, <rohi$ited Acts
d, /lassi)cation of /ertain -omen -orkers
e, Anti=Se%ual 6arassment Act
9. (inor Wor!rs =RA 71@- 's ',!n! 2* RA 778 'n RA 9461>

a, Re&ulation of -orkin& 6ours of a /hild
$, *mployment of the child in pu$lic entertainment
c, <rohi$ition of employin& minors n certain undertakin& and
certain ad(ertisements
1@. E,p%o*,!nt o ous!:!%p!rs

a, !e)nition
$, Bene)ts accorded to 6ousehelpers
c, Termination
d, Reliefs for Pn0ust Termination
11. E,p%o*,!nt o o,!5or!rs
a,
$, !e)nition
Ri&hts and Bene)ts accorded to 6omeworkers
c, /onditions for deduction from 6omeworkers earnin&s
14. Appr!nti"! 'n L!'rn!rs

a, !istinctions $etween Learnership and Apprenticeship

Atty 8oltaire !uano
16. 'ni"'pp! Wor!rs ==RA 7477- 's ',!n! 2* RA

944>
a, !e)nition of 6andicapped -orkeres
$, Ri&hts of !isa$led -orkers
c, <rohi$itions on !iscrimintaion ad&ainst !isa$led <ersons
d, +ncenti(es for *mployers
D. TER(INATION OF E(&LO?(ENT
1. E,p%o*!r+E,p%o*!! R!%'tions:ip
a, ;=7old Test
$, <ro$ationary *mployment
c, Kinds of *mployment
1, Re&ular *mployment
Reasona$le /onnection Rule
5, <ro0ect *mployment
+ndicators of <ro0ect *mployment

9, Seasonal *mployment
;, /asual *mployment
, 7i%ed Term *mployment
Re#uisite for 8alidity
d, o$=/ontractin& and La$or=Only /ontractin&

1, -hen is there o$=/ontractin&
5, -hen is there La$or=Only /ontractin&
9, /onditions that must concur in le&itimate 0o$ contractin&
;, *Nects of 7indin& that there is la$or only contractin&
4. T!r,in'tion o E,p%o*,!nt
'. Su2st'nti$! Du! &ro"!ss
1, ust /auses
a Serious @isconduct or -illful !iso$edience
$ Gross and 6a$itual e&lect of !uties
c 7raud or -illful Breach of Trust
d A$andonment of *mployment
e Termination of *mployment pursuant to a Pnion
Security /lause
f Totality of +nfractions !octrine
5, Authori?ed /auses
a Redundancy JRetrenchment and /losure
i, <rocedural Steps Re#uired
ii, Re#uirements for 8alid Retrenchment
Jredundancy
iii, /riteria for selectin& employees for dismissal
Atty 8oltaire !uano
i(, Standards to $e followed
9, !isease or +llness
2. &ro"!ur'% Du! &ro"!ss

1, Reinstatement Aspect
a +mmediately e%ecutor
i, Actual Reinstatement
ii, <ayroll Reinstatement
5, Separation <ay in lieu of Reinstatement
a Strained Relations Rule
9, Backwa&es
a /omponents of the Amount of Backwa&es
;, /onstructi(e !ismissal
, <re(enti(e Suspenion
C, uitclaims
D, Termination of *mployment $y *mployee
c, Reliefs for +lle&al !ismissal
6. R!tir!,!nt &'* L'5

a, /o(era&e
$, *%clusions from /o(era&e
c, /omponents of Retirement <ay
d, Retirement <ay under RA DC;1 (is=a=(iis retirement
$ene)ts under SSS and GS+S laws
E. (ANA/E(ENT &RERO/ATI0E
1, !iscipline
5, Transfer of *mployees
9, <roducti(ity Standards
;, Grant of Bonus
, /han&e of -orkin& 6ours
C, @arital !iscrimination
D, <ost=employment Ban
3, Limitations in its *%ercise
F. SOCIAL LE/ISLATION
1, SSS Law
a, /o(era&e
$, *%clusions from /o(erra&e
c, Bene)ts
d, Bene)ciaries
5, GS+S Law
a, /o(era&e
$, *%clusions from /o(era&e
c, Bene)ts
d, Bene)ciaries
Atty 8oltaire !uano
9, Limited <orta$ility Law

;, *mployees /ompensation /o(era&e
LABOR CASES# FLOWCART OF FILIN/ CASES

I. C's!s '%%in) un!r t:! Ori)in'% E;"%usi$! Jurisi"tion o t:! L'2or
Ar2it!r
7ile the La$or /ases $efore the La$or Ar$iter, /ases under its 0urisdiction
are enumerated under Art 51D, The followin& are also included>
 @oney claims of O7-s are also included $y (irtue of RA 32;5H

 -a&e distortion in an unor&ani?ed esta$lishments $y (irtue of RA
CD5DH
 *nforcement of compromise a&reements IArt 55D of the La$or
/odeH and
 /ases arisin& out of the interpretation and implementation of the

/BA $y (irtue of Re(ised Rules of <rocedures of the LR/,
ote that the La$or Ar$iters ha(e the ancillary power to issue in0unctions
only as incidents to cases pendin& $efore it in order to preser(e the ri&hts of
the parties, This' howe(er' does not include in0unction on strikes or
lockouts, I,ondoc vs 2-D$
7ile an Ordinary Appeal of the decision of the La$or Ar$iter $efore the NLRC
5it:in 1@ "'%!n'r '*s , The &rounds for appeal are as follows>
1, +f there is prima facie e(idence of a$use of discretion on the part of
5, the La$or
+f the ar$iterH
decision' order or award was secured throu&h fraud' or
coercion' includin& &raft and corruptionH
9, +f made purely on #uestions of lawH and
;, +f serious errors in the )ndin&s of facts are raised which would cause
&ra(e of irrepara$le dama&e of in0ury to the appellant,
IArt 559
The LR/ shall decide the cases within 52 calendar days from receipt of the
answer of the appellee, +ts decision shall $e )nal and e%ecutory after 12
calendar days from the receipt of the parties,
@otion for
7ile a <etition for /ertiorari under Rule C $efore the /ourt of
Appeals within UUUUUUUUUUUUUUUUU,
Rule ;9 of the Rules of /ourt is not $indin& on La$or /ases IRule

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- D;

Atty 8oltaire !uano
7ile a <etition for Re(iew on /ertiorari under Rule ;

$efore the Supreme /ourt within UUUUUUUUUUUUUUUUU,
++, !irect and +ndirect /ontempt /ases

+++, /ases fallin& under the Ori&inal *%clusi(e urisdiction of the Re&ional
!irector
+8, /ases fallin& under the Ori&inal *%clusi(e urisdiction of the Bureau of
La$or Relations
8, /ases fallin& under the Ori&inal *%clusi(e urisdiction of the LR/

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8/17/2019 Labor Law Review - Atty v Duano

• LABOR means physical toil

KINDS OF LABOR LAWS

ot all social le&islation are la$or laws,

SOURCES OF LABOR LAWS

• Art ++' Sec 13

• Art 4++' Sec 15

• Art 4+++' Sec 1

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1

Section 1. The $ongress shall give highest priority to the

To this end# the State shall regulate the ac%uisition#

• Art 4+++' Sec 9:

Section '. The State shall aford ull protection to

It shall guarantee the rights of all worers to self(

The State shall promote the principle o shared

The State shall regulate the relations between worers

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 5

*200 !ar "#am $uestion

,olicies which were not covered in the -abor $ode

• principle of shared responsibility between worers and employers and the

• preferential use of voluntary modes in settling disputes

• regulation of relations bet worers and employees

• creation of economic opportunities

*200% !ar "#am $uestion

The purpose of labor legislation.

• Art 4+++' Sec 1;

/onstitutional <ro(isions are not self=e%ecutin&,

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 9

Serrano (s Gallant @aritime Ser(ices' +nc,

II. Ci$i% Co!

rt. 10'. 2o contract which practically amounts to involuntary servitude#

rt. 10/. In collective bargaining# the labor union or members of the

rt. 103. The laborer4s wages shall be paid in legal currency.

rt. 110. ismissal of laborers shall be subject to the supervision of the

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III. R!$is! &!n'% Co!

BASES OF LABOR LAWS

Asso" ! A)ri"u%tur!s ! T'%is*+Si%'* $s T'%is'*+Si%'* (i%%in)

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constitutionality.? <p. 1# Brief of micus $uiae in Behalf of Silay(

II. SOCIAL JUSTICE

&LDT $s NLRC- Au) 1988

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The policy of social justice is not intended to countenance wrongdoing

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TE LABOR CODE OF TE &ILI&&INES

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LABOR LAW RE0IEW

A. FUNDA(ENTAL &RINCI&LES  &OLICIES

Section 7. The State shall promote a just and dynamic

Section 10. The State shall promote social justice in all

Section 11. The State values the dignity of every human

Section 1'. The State recogni)es the vital role of the

Section 1/. The State recogni)es the role of women in

Section 18. The State arms labor as a primary social

Section !0. The State recogni)es the indispensable role of

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Section 1. 2o person shall be deprived of life# liberty# or

Section /. 2o law shall be passed abridging the freedom

Section 8. The right of the people# including those

". Arti"%! 3III

Section 1. The $ongress shall give highest priority to the

Section '. The State shall aford ull protection to

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Asso" ! A)ri"u%tur!s ! T'%is+Si%' $s T'%is'+Si%' (i%%in)

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$ ssential lements of +lle&al Recruitment

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