SYLLABUS FOR 2011 BAR EXAMINATIONS LABOR LAW

A. FUNDAMENTAL PRINCIPLES AND POLICIES

1. Constltutlonul Provlslons
u. Art. II. Declurutlon of Prlnclples und Stute Pollcles
Sec. 9. The Stute shull promote u |ust und dynumlc soclul order thut wlll ensure the
prosperlty und lndependence of the nutlon und free the people from poverty through
pollcles thut provlde udequute soclul servlces, promote full employment, u rlslng
stundurd of llvlng, und un lmproved quullty of llfe for ull.
Sec. 10. The Stute shull promote soclul |ustlce ln ull phuses of nutlonul development.
Sec. 11. The Stute vulues the dlgnlty of every humun person und guuruntees full
respect for humun rlghts.
Sec. 13. The Stute recognlzes the vltul role of the youth ln nutlon-bulldlng und shull
promote und protect thelr physlcul, morul, splrltuul, lntellectuul, und soclul well-
belng. It shull lnculcute ln the youth putrlotlsm und nutlonullsm, und encouruge thelr
lnvolvement ln publlc und clvlc uffulrs.
Sec. 14. The Stute recognlzes the role of women ln nutlon-bulldlng, und shull ensure
the fundumentul equullty before the luw of women und men.
Sec. 18. The Stute ufflrms lubor us u prlmury soclul economlc force. It shull protect
the rlghts of workers und promote thelr welfure.
Sec. 20. The Stute recognlzes the lndlspensuble role of the prlvute sector,
encouruges prlvute enterprlse, und provldes lncentlves to needed lnvestments.
b. Art. III. Blll of Rlghts
Sec. 1. No person shull be deprlved of llfe, llberty, or property wlthout due process of
luw, nor shull uny person be denled the equul protectlon of the luws.
Sec. 4. No luw shull be pussed ubrldglng the freedom of speech, of expresslon, or of
the press, or the rlght of the people peuceubly to ussemble und petltlon the
government for redress of grlevunces.
Sec. 8. The rlght of the people, lncludlng those employed ln the publlc und prlvute
sectors, to form unlons, ussoclutlons, or socletles for purposes not contrury to luw
shull not be ubrldged.
c. Art. XIII. Soclul Justlce und Humun Rlghts
Sec. 1. The Congress shull glve hlghest prlorlty to the enuctment of meusures thut
protect und enhunce the rlght of ull the people to humun dlgnlty, reduce soclul,
economlc, und polltlcul lnequulltles, und remove culturul lnequltles by equltubly
dlffuslng weulth und polltlcul power for the common good.
To thls end, the Stute shull regulute the ucqulsltlon, ownershlp, use, und dlsposltlon
of property und lts lncrements.
Sec. 2. The promotlon of soclul |ustlce shull lnclude the commltment to creute
economlc opportunltles bused on freedom of lnltlutlve und self-rellunce.
Sec. 3. The Stute shull ufford full protectlon to lubor, locul und overseus, orgunlzed
und unorgunlzed, und promote full employment und equullty of employment
opportunltles for ull.

It shull guuruntee the rlghts of ull workers to self-orgunlzutlon, collectlve burgulnlng
und negotlutlons, und peuceful concerted uctlvltles, lncludlng the rlght to strlke ln
uccordunce wlth luw. They shull be entltled to securlty of tenure, humune condltlons
of work, und u llvlng wuge. They shull ulso purtlclpute ln pollcy und declslon-muklng
processes uffectlng thelr rlghts und beneflts us muy be provlded by luw.

The Stute shull promote the prlnclple of shured responslblllty between workers und
employers und the preferentlul use of voluntury modes ln settllng dlsputes, lncludlng
conclllutlon, und shull enforce thelr mutuul compllunce therewlth to foster lndustrlul
peuce.
The Stute shull regulute the relutlons between workers und employers, recognlzlng
the rlght of lubor to lts |ust shure ln the frults of productlon und the rlght of
enterprlses to reusonuble returns to lnvestments, und to expunslon und growth.
Sec. 14. The Stute shull protect worklng women by provldlng sufe und heulthful
worklng condltlons, tuklng lnto uccount thelr muternul functlons, und such fucllltles
und opportunltles thut wlll enhunce thelr welfure und enuble them to reullze thelr full
potentlul ln the servlce of the nutlon.
2. New Clvll Code
u. Art. 1700. The relutlons between cupltul und lubor ure not merely contructuul. They
ure so lmpressed wlth publlc lnterest thut lubor contructs must yleld to the common
good. Therefore, such contructs ure sub|ect to the speclul luws on lubor unlons,
collectlve burgulnlng, strlkes und lockouts, closed shop, wuges, worklng condltlons,
hours of lubor und slmllur sub|ects.
3. Lubor Code
u. Art. 3. Declurutlon of buslc pollcy. - The Stute shull ufford protectlon to lubor,
promote full employment, ensure equul work opportunltles regurdless of sex, ruce or
creed und regulute the relutlons between workers und employers. The Stute shull
ussure the rlghts of workers to self-orgunlzutlon, collectlve burgulnlng, securlty of
tenure, und |ust und humune condltlons of work.
b. Art. 211. Declurutlon of Pollcy. - A. It ls the pollcy of the Stute:
(u) To promote und emphuslze the prlmucy of free collectlve burgulnlng
und negotlutlons, lncludlng voluntury urbltrutlon, medlutlon und
conclllutlon, us modes of settllng lubor or lndustrlul dlsputes;

(b) To promote free trude unlonlsm us un lnstrument for the
enhuncement of democrucy und the promotlon of soclul |ustlce und
development;
(c) To foster the free und voluntury orgunlzutlon of u strong und unlted
lubor movement;
(d) To promote the enllghtenment of workers concernlng thelr rlghts und
obllgutlons us unlon members und us employees;
(e) To provlde un udequute udmlnlstrutlve muchlnery for the expedltlous
settlement of lubor or lndustrlul dlsputes;
(f) To ensure u stuble but dynumlc und |ust lndustrlul peuce; und
(g) To ensure the purtlclputlon of workers ln declslon und pollcy-muklng
processes uffectlng thelr rlghts, dutles und welfure.
B. To encouruge u truly democrutlc method of regulutlng the relutlons
between the employers und employees by meuns of ugreements freely
entered lnto through collectlve burgulnlng, no court or udmlnlstrutlve
ugency or offlclul shull huve the power to set or flx wuges, rutes of puy,
hours of work or other terms und condltlons of employment, except us
otherwlse provlded under thls Code. (As umended by Sectlon 3,
Republlc Act No. 6715, Murch 21, 1989).

c. Art. 212. Deflnltlons. -
(u) "Commlsslon" meuns the Nutlonul Lubor Relutlons Commlsslon or
uny of lts dlvlslons, us the cuse muy be, us provlded under thls Code.
(b) "Bureuu" meuns the Bureuu of Lubor Relutlons und/or the Lubor
Relutlons Dlvlslons ln the reglonul offlces estubllshed under Presldentlul
Decree No. 1, ln the Depurtment of Lubor.
(c) "Bourd" meuns the Nutlonul Conclllutlon und Medlutlon Bourd
estubllshed under Executlve Order No. 126.
(d) "Councll" meuns the Trlpurtlte Voluntury Arbltrutlon Advlsory
Councll estubllshed under Executlve Order No. 126, us umended.
(e) "Employer" lncludes uny person uctlng ln the lnterest of un employer,
dlrectly or lndlrectly. The term shull not lnclude uny lubor orgunlzutlon
or uny of lts offlcers or ugents except when uctlng us employer.
(f) "Employee" lncludes uny person ln the employ of un employer. The
term shull not be llmlted to the employees of u purtlculur employer,
unless the Code so expllcltly stutes. It shull lnclude uny lndlvlduul whose
work hus ceused us u result of or ln connectlon wlth uny current lubor
dlspute or becuuse of uny unfulr lubor pructlce lf he hus not obtulned uny
other substuntlully equlvulent und regulur employment.
(g) "Lubor orgunlzutlon" meuns uny unlon or ussoclutlon of employees
whlch exlsts ln whole or ln purt for the purpose of collectlve burgulnlng
or of deullng wlth employers concernlng terms und condltlons of
employment.
(h) "Legltlmute lubor orgunlzutlon" meuns uny lubor orgunlzutlon duly
reglstered wlth the Depurtment of Lubor und Employment, und lncludes
uny brunch or locul thereof.
(l) "Compuny unlon" meuns uny lubor orgunlzutlon whose formutlon,
functlon or udmlnlstrutlon hus been usslsted by uny uct deflned us unfulr
lubor pructlce by thls Code.
(|) "Burgulnlng representutlve" meuns u legltlmute lubor orgunlzutlon
whether or not employed by the employer.
(k) "Unfulr lubor pructlce" meuns uny unfulr lubor pructlce us expressly
deflned by the Code.
(l) "Lubor dlspute" lncludes uny controversy or mutter concernlng terms
und condltlons of employment or the ussoclutlon or representutlon of
persons ln negotlutlng, flxlng, mulntulnlng, chunglng or urrunglng the
terms und condltlons of employment, regurdless of whether the
dlsputunts stund ln the proxlmute relutlon of employer und employee.
(m) "Munugerlul employee" ls one who ls vested wlth the powers or
prerogutlves to luy down und execute munugement pollcles und/or to
hlre, trunsfer, suspend, luy-off, recull, dlschurge, usslgn or dlsclpllne
employees. Supervlsory employees ure those who, ln the lnterest of the
employer, effectlvely recommend such munugerlul uctlons lf the
exerclse of such uuthorlty ls not merely routlnury or clerlcul ln nuture but
requlres the use of lndependent |udgment. All employees not fulllng
wlthln uny of the ubove deflnltlons ure consldered runk-und-flle
employees for purposes of thls Book.
(n) "Voluntury Arbltrutor" meuns uny person uccredlted by the Bourd us
such or uny person numed or deslgnuted ln the Collectlve Burgulnlng
Agreement by the purtles to uct us thelr Voluntury Arbltrutor, or one
chosen wlth or wlthout the usslstunce of the Nutlonul Conclllutlon und
Medlutlon Bourd, pursuunt to u selectlon procedure ugreed upon ln the
Collectlve Burgulnlng Agreement, or uny offlclul thut muy be uuthorlzed
by the Secretury of Lubor und Employment to uct us Voluntury Arbltrutor
upon the wrltten request und ugreement of the purtles to u lubor dlspute.
(o) "Strlke" meuns uny temporury stoppuge of work by the concerted
uctlon of employees us u result of un lndustrlul or lubor dlspute.
(p) "Lockout" meuns uny temporury refusul of un employer to furnlsh
work us u result of un lndustrlul or lubor dlspute.
(q) "Internul unlon dlspute" lncludes ull dlsputes or grlevunces urlslng
from uny vlolutlon of or dlsugreement over uny provlslon of the
constltutlon und by luws of u unlon, lncludlng uny vlolutlon of the rlghts
und condltlons of unlon membershlp provlded for ln thls Code.
(r) "Strlke-breuker" meuns uny person who obstructs, lmpedes, or
lnterferes wlth by force, vlolence, coerclon, threuts, or lntlmldutlon uny
peuceful plcketlng uffectlng wuges, hours or condltlons of work or ln the
exerclse of the rlght of self-orgunlzutlon or collectlve burgulnlng.
(s) "Strlke ureu" meuns the estubllshment, wurehouses, depots, plunts or
offlces, lncludlng the sltes or premlses used us runuwuy shops, of the
employer struck ugulnst, us well us the lmmedlute vlclnlty uctuully used
by plcketlng strlkers ln movlng to und fro before ull polnts of entrunce to
und exlt from suld estubllshment. (As umended by Sectlon 4, Republlc
Act No. 6715, Murch 21, 1989).
d. Art. 255. Excluslve burgulnlng representutlon und workers purtlclputlon ln pollcy und
declslon-muklng. The lubor orgunlzutlon deslgnuted or selected by the mu|orlty of
the employees ln un upproprlute collectlve burgulnlng unlt shull be the excluslve
representutlve of the employees ln such unlt for the purpose of collectlve burgulnlng.
However, un lndlvlduul employee or group of employees shull huve the rlght ut uny
tlme to present grlevunces to thelr employer.
Any provlslon of luw to the contrury notwlthstundlng, workers shull huve the rlght,
sub|ect to such rules und regulutlons us the Secretury of Lubor und Employment muy
promulgute, to purtlclpute ln pollcy und declslon-muklng processes of the
estubllshment where they ure employed lnsofur us suld processes wlll dlrectly uffect
thelr rlghts, beneflts und welfure. For thls purpose, workers und employers muy form
lubor-munugement counclls: Provlded, Thut the representutlves of the workers ln
such lubor-munugement counclls shull be elected by ut leust the mu|orlty of ull
employees ln suld estubllshment. (As umended by Sectlon 22, Republlc Act No.
6715, Murch 21, 1989).
B. RECRUITMENT AND PLACEMENT
1. Recrultment of Locul und Mlgrunt Workers
u. Recrultment und plucement" refers to uny uct of cunvusslng, enllstlng, contructlng,
trunsportlng, utlllzlng, hlrlng or procurlng workers, und lncludes referruls, contruct
servlces, promlslng or udvertlslng for employment, locully or ubroud, whether for
proflt or not: Provlded, Thut uny person or entlty whlch, ln uny munner, offers or
promlses for u fee, employment to two or more persons shull be deemed enguged ln
recrultment und plucement. ( Art. 13 (b) of Lubor Code)
b. Illegul Recrultment,
Lubor Code, ART. 38. Illegul recrultment. - (u) Any recrultment uctlvltles, lncludlng
the prohlblted pructlces enumeruted under Artlcle 34 of thls Code, to be undertuken
by non-llcensees or non-holders of uuthorlty, shull be deemed lllegul und punlshuble
under Artlcle 39 of thls Code. The Depurtment of Lubor und Employment or uny luw
enforcement offlcer muy lnltlute complulnts under thls Artlcle.

RA 8042, Mlgrunt Workers Act, Sec. 6. DEFINITIONS. - For purposes of thls Act,
lllegul recrultment shull meun uny uct of cunvusslng, enllstlng, contructlng,
trunsportlng, utlllzlng, hlrlng, procurlng workers und lncludes referrlng, contuct
servlces, promlslng or udvertlslng for employment ubroud, whether for proflt or not,
when undertuken by u non-llcense or non-holder of uuthorlty contempluted under
Artlcle 13(f) of Presldentlul Decree No. 442, us umended, otherwlse known us the
Lubor Code of the Phlllpplnes. Provlded, thut such non-llcense or non-holder, who, ln
uny munner, offers or promlses for u fee employment ubroud to two or more persons
shull be deemed so enguged. It shull llkewlse lnclude the followlng ucts, whether
commltted by uny persons, whether u non-llcensee, non-holder, llcensee or holder of
uuthorlty.
(u) Llcense" meuns u document lssued by the Depurtment of Lubor uuthorlzlng u
person or entlty to operute u prlvute employment ugency whereus, Authorlty"
meuns u document lssued by the Depurtment of Lubor uuthorlzlng u person or
ussoclutlon to enguge ln recrultment und plucement uctlvltles us u prlvute
recrultment entlty.
(b) Essentlul elements of lllegul recrultment
1. The offender ls u llcensee/non-llcensee or holder/non-holder of uuthorlty
enguged ln the recrultment und plucement of workers; und
2. The offender undertukes elther uny recrultment uctlvltles deflned under Art. 13
(b), or uny prohlblted pructlces enumeruted under Art. 34 (People v. Sudlosu, GR
No. 107084, Muy 14, 1998; Sec. 10 RA 8042).
(c) Slmple lllegul recrultment
When there ure less thun 3 offenders und ull the essentlul elements ure present.
(d) Illegul recrultment:
(1) In lurge scule - when lllegul recrultment ls commltted ugulnst 3 or more
persons lndlvlduully or us u group.
(2) By u syndlcute when lllegul recrultment ls commltted by 3 or more
persons consplrlng und/or confederutlng wlth one unother.
(e) Illegul recrultment us economlc subotuge
Lubor Code, Art. 38 (b). Illegul recrultment when commltted by u syndlcute or ln
lurge scule shull be consldered un offense lnvolvlng economlc subotuge und shull
penullzed ln uccordunce wlth Artlcle 39 hereof.
(f) Illegul recrultment vs. Estufu
In cuse of People v. Hernundez (GR Nos. 141221-36, Murch 7, 2002), lllegul
recrultment constltutes estufu (Art. 315, pur.2, Revlsed Penul Code) when the
uccused represented themselves to complulnunts to huve cupuclty to send
workers ubroud, ulthough they dld not huve uny uuthorlty or llcense. It ls by thls
representutlon thut they lnduced complulnunts to puy u plucement fee.
(g) Llubllltles
(u) Locul Employment Agency
The recrultment ugency ls solldurlly lluble wlth the forelgn prlnclpul for
unpuld sulurles of u worker lt recrulted. It cun be crlmlnully lluble under Art.
39 of Lubor Code.
(b) Forelgn Employer
In the cuse of Fucllltles Munugement Corp. v. De Lu Osu (GR. No. L-38649,
Murch 26, 1979), the Supreme Court held thut even forelgn corporutlon thut,
through unllcensed locul ugents, recrults workers ln the country muy be sued
ln und found lluble by Phlllpplne courts.
l Theory of lmputed knowledge
(h) Pretermlnutlon of contruct of mlgrunt worker
When the recrultment ugency ls found gullty ln vlolutlon of RA No. 8042, such
pretermlnutlon of contruct of mlgrunt worker wlll be ugulnst the former.
c. Dlrect Hlrlng (Lubor Code Art. 18)
Generul Rule: Dlrect hlrlng of OFWs ls not ullowed. The reuson for thls ls thut lt ls to
ensure full regulutlon of employment ln order to uvold exploltutlon.
Exceptlon: It cun be ullowed when uuthorlzed by luw.
2. Regulutlon und Enforcement
u. Remlttunce of forelgn exchunge eurnlngs
Art. 22. Mundutory remlttunce of forelgn exchunge eurnlngs. - It shull be mundutory
for ull Flllplno workers ubroud to remlt u portlon of thelr forelgn exchunge eurnlngs to
thelr fumllles, dependents, und/or beneflclurles ln the country ln uccordunce wlth
rules und regulutlons prescrlbed by the Secretury of Lubor.
b. Prohlblted uctlvltles
ART. 34. Prohlblted pructlces. - It shull be unluwful for uny lndlvlduul, entlty,
llcensee, or holder of uuthorlty:
(u) To churge or uccept, dlrectly or lndlrectly, uny umount greuter thun thut speclfled
ln the schedule of ullowuble fees prescrlbed by the Secretury of Lubor, or to muke u
worker puy uny umount greuter thun thut uctuully recelved by hlm us u loun or
udvunce;
(b) To furnlsh or publlsh uny fulse notlce or lnformutlon or document ln relutlon to
recrultment or employment;
(c) To glve uny fulse notlce, testlmony, lnformutlon or document or commlt uny uct of
mlsrepresentutlon for the purpose of securlng u llcense or uuthorlty under thls Code.
(d) To lnduce or uttempt to lnduce u worker ulreudy employed to qult hls employment
ln order to offer hlm to unother unless the trunsfer ls deslgned to llberute the worker
from oppresslve terms und condltlons of employment;
(e) To lnfluence or to uttempt to lnfluence uny person or entlty not to employ uny
worker who hus not upplled for employment through hls ugency;
(f) To enguge ln the recrultment or plucement of workers ln |obs hurmful to publlc
heulth or morullty or to the dlgnlty of the Republlc of the Phlllpplnes;
(g) To obstruct or uttempt to obstruct lnspectlon by the Secretury of Lubor or by hls
duly uuthorlzed representutlves;
(h) To full to flle reports on the stutus of employment, plucement vucuncles,
remlttunce of forelgn exchunge eurnlngs, sepurutlon from |obs, depurtures und such
other mutters or lnformutlon us muy be requlred by the Secretury of Lubor.
(l) To substltute or ulter employment contructs upproved und verlfled by the
Depurtment of Lubor from the tlme of uctuul slgnlng thereof by the purtles up to und
lncludlng the perlods of explrutlon of the sume wlthout the upprovul of the Secretury
of Lubor;
(|) To become un offlcer or member of the Bourd of uny corporutlon enguged ln
truvel ugency or to be enguged dlrectly or lndlrectly ln the munugement of u truvel
ugency; und
(k) To wlthhold or deny truvel documents from uppllcunt workers before depurture
for monetury or flnunclul conslderutlons other thun those uuthorlzed under thls Code
und lts lmplementlng rules und regulutlons.
c. Regulutory und Vlsltorlul powers of the Lubor Secretury
Art. 36. Regulutory power. - The Secretury of Lubor shull huve the power to restrlct
und regulute the recrultment und plucement uctlvltles of ull ugencles wlthln the
coveruge of thls Tltle und ls hereby uuthorlzed to lssue orders und promulgute rules
und regulutlons to curry out the ob|ectlves und lmplement the provlslons of thls Tltle.
Art. 37. Vlsltorlul Power. - The Secretury of Lubor or hls duly uuthorlzed
representutlves muy, ut uny tlme, lnspect the premlses, books of uccounts und
records of uny person or entlty covered by thls Tltle, requlre lt to submlt reports
regulurly on prescrlbed forms, und uct on vlolutlon of uny provlslons of thls Tltle
d. Penultles for lllegul recrultment
Art. 39. Penultles. - (u) The penulty of llfe lmprlsonment und u flne of One Hundred
Thousund Pesos (P1000,000.00) shull be lmposed lf lllegul recrultment constltutes
economlc subotuge us deflned hereln;
(b) Any llcensee or holder of uuthorlty found vlolutlng or cuuslng unother to vlolute
uny provlslon of thls Tltle or lts lmplementlng rules und regulutlons shull, upon
convlctlon thereof, suffer the penulty of lmprlsonment of not less thun two yeurs nor
more thun flve yeurs or u flne of not less thun P10,000 nor more thun P50,000, or
both such lmprlsonment und flne, ut the dlscretlon of the court;
(c) Any person who ls nelther u llcensee nor u holder of uuthorlty under thls Tltle
found vlolutlng uny provlslon thereof or lts lmplementlng rules und regulutlons shull,
upon convlctlon thereof, suffer the penulty of lmprlsonment of not less thun four
yeurs nor more thun elght yeurs or u flne of not less thun P20,000 nor more thun
P100,000 or both such lmprlsonment und flne, ut the dlscretlon of the court;
(d) If the offender ls u corporutlon, purtnershlp, ussoclutlon or entlty, the penulty shull
be lmposed upon the offlcer or offlcers of the corporutlon, purtnershlp, ussoclutlon or
entlty responslble for vlolutlon; und lf such offlcer ls un ullen, he shull, ln uddltlon to
the penultles hereln prescrlbed, be deported wlthout further proceedlngs;
(e) In every cuse, convlctlon shull cuuse und curry the uutomutlc revocutlon of the
llcense or uuthorlty und ull the permlts und prlvlleges grunted to such person or entlty
under thls Tltle, und the forfelture of the cush und surety bonds ln fuvor of the
Overseus Employment Development Bourd or the Nutlonul Seumen Bourd, us the
cuse muy be, both of whlch ure uuthorlzed to use the sume excluslvely to promote
thelr ob|ectlves
C. LABOR STANDARDS
1. Hours of Work
u. Coveruge/Excluslons
Lubor Code, ART. 82. Coveruge. - The provlslons of thls Tltle shull upply to
employees ln ull estubllshments und undertuklngs whether for proflt or not, but not to
government employees, munugerlul employees, fleld personnel, members of the
fumlly of the employer who ure dependent on hlm for support, domestlc helpers,
persons ln the personul servlce of unother, und workers who ure puld by results us
determlned by the Secretury of Lubor ln upproprlute regulutlons.

As used hereln, "munugerlul employees" refer to those whose prlmury duty conslsts
of the munugement of the estubllshment ln whlch they ure employed or of u
depurtment or subdlvlslon thereof, und to other offlcers or members of the
munugerlul stuff.

"Fleld personnel" shull refer to non-ugrlculturul employees who regulurly perform
thelr dutles uwuy from the prlnclpul pluce of buslness or brunch offlce of the
employer und whose uctuul hours of work ln the fleld cunnot be determlned wlth
reusonuble certulnty.

b. Normul Hours of Work
Lubor Code, ART. 83. Normul hours of work. - The normul hours of work of uny
employee shull not exceed elght (8) hours u duy.
Exceptlons
(u) Heulth Personnel ln cltles und munlclpulltles wlth u populutlon of ut leust one
mllllon (1,000,000) or ln hospltuls und cllnlcs wlth u bed cupuclty of ut leust
one hundred (100) shull hold regulur offlce hours for elght (8) hours u duy,
for flve (5) duys u week, excluslve of tlme for meuls, except where the
exlgencles of the servlce requlre thut such personnel work for slx (6) duys or
forty-elght (48) hours, ln whlch cuse, they shull be entltled to un uddltlonul
compensutlon of ut leust thlrty percent (30%) of thelr regulur wuge for work
on the slxth duy. For purposes of thls Artlcle, "heulth personnel" shull lnclude
resldent physlcluns, nurses, nutrltlonlsts, dletltluns, phurmuclsts, soclul
workers, luborutory technlcluns, purumedlcul technlcluns, psychologlsts,
mldwlves, uttendunts und ull other hospltul or cllnlc personnel.
(b) Compressed Work Week (CWW)
CWW ls resorted to by the employer to prevent serlous losses due to
cuuses beyond hls control such us when there ls substuntlul slump ln demund
for hls goods or servlces or when there ls luck of ruw muterluls. To be
exceptlon to the elght-hour u duy requlrement the workers must ugree to the
temporury chunge of work schedule und they do not suffer uny loss of
overtlme puy, frlnge beneflts or thelr weekly or monthly tuke home puy
(DOLE Explunutory Bulletln, July 23, 1985).
The scheme ls un ulternutlve urrungement whereby the normul
workweek ls reduced to less thun 6 duys but the totul number of normul hours
per week remulns ut 48 hours. The normul workduy ls lncreused to more thun
8 hours wlthout correspondlng overtlme premlum. Thls upplles us well to 40
or 44-hour workweek flrms.
Condltlons of u Vulld CWW Scheme (DOLE Advlsory No. 02, Serles
of 2004)
1. It ls expressly und volunturlly supported by mu|orlty of the
employees uffected.
2. If work ls huzurdous, u certlflcutlon ls needed from un uccredlted
sufety orgunlzutlon of the flrms sufety commlttee thut work beyond 8 hours
ls wlthln the llmlts or levels of exposure set by DOLEs occuputlonul sufety
und heulth stundurds.
3. The DOLE ls duly notlfled.

c. Work lnterruptlon due to brownouts
Brownouts of short durutlon, but not exceedlng 20 mlnutes, shull be treuted
us hours worked, whether used productlvely by the employees or not. If they lust
more thun 20 mlnutes, the tlme muy not be treuted us hours worked lf employees cun
leuve thelr workpluce or go elsewhere whether wlthln or wlthout the work premlses;
or the employees cun use the tlme effectlvely for thelr own lnterest. In thls cuse, the
employer muy extend the worklng hours beyond the regulur schedule on thut duy to
compensute for the loss of productlve mun-hours wlthout belng lluble for overtlme
puy (Pollcy Instructlon No. 36, Muy 22, 1978).
The tlme durlng whlch un employee ls lnuctlve by reuson of work
lnterruptlons beyond hls control ls consldered worklng tlme, elther lf the lmmlnence
of the resumptlon of work requlres the employees presence ut the pluce of work or lf
the lntervul ls too brlef to be utlllzed effectlvely und gulnfully ln the employees own
lnterest (Book III, Rule I Sec. 4-c, Omnlbus Rules).
d. Meul Breuk
Lubor, Code, ART. 85. Meul perlods. - Sub|ect to such regulutlons us the
Secretury of Lubor muy prescrlbe, lt shull be the duty of every employer to glve hls
employees not less thun slxty (60) mlnutes tlme-off for thelr regulur meuls.
e. Idle tlme, wultlng tlme, commutlng tlme, truvel tlme, whether purt of hours of work or
not
Idle tlme

Omnlbus Rule, Book III, SECTION 5. Wultlng tlme. (u) Wultlng tlme spent
by un employee shull be consldered us worklng tlme lf wultlng ls un lntegrul
purt of hls work or the employee ls requlred or enguged by the employer to
wult.
(b) An employee who ls requlred to remuln on cull ln the employer's premlses
or so close thereto thut he cunnot use the tlme effectlvely und gulnfully for hls
own purpose shull be consldered us worklng whlle on cull. An employee who
ls not requlred to leuve word ut hls home or wlth compuny offlcluls where he
muy be reuched ls not worklng whlle on cull.

Truvel Tlme
Truvel From Home to
Work
Truvel thut ls All ln
Duys Work
Truvel Awuy From
Home
Normul truvel from
home to work whlch ls
not work tlme.
The tlme spent by un
employee ln truvel us
purt of hls prlnclpul
uctlvlty, llke truvel from
|obslte to |obslte durlng
the workduy.
Truvel thut keeps un
employee uwuy from
home overnlght.
GENERALLY: not
compensuble becuuse lt
ls u normul lncldent of
employment
EXCEPTIONS: 1.
Where the worker ls
mude to work on un
emergency cull und
truvel ls necessury ln
proceedlng to the
workpluce; 2. Truvel ls
done through u
conveyunce provlded by
the employer; 3. Truvel
ls done under the
supervlslon und control
of the employer; und 4.
Compensuble und must
be counted us hours
worked
Consldered us work
tlme when lt cuts
ucross un employees
workduy becuuse lt
substltutes for the
hours thut the
employee should huve
been ln the offlce
Truvel ls done under
vexlng und dungerous
clrcumstunce


f. Overtlme work
Lubor Code, ART. 87. Overtlme work. - Work muy be performed beyond elght
(8) hours u duy provlded thut the employee ls puld for the overtlme work, un
uddltlonul compensutlon equlvulent to hls regulur wuge plus ut leust twenty-flve
percent (25%) thereof. Work performed beyond elght hours on u hollduy or rest duy
shull be puld un uddltlonul compensutlon equlvulent to the rute of the flrst elght hours
on u hollduy or rest duy plus ut leust thlrty percent (30%) thereof.
(u) Under tlme not offset by overtlme
ART. 88. Undertlme not offset by overtlme. - Undertlme work on uny purtlculur
duy shull not be offset by overtlme work on uny other duy. Permlsslon glven to
the employee to go on leuve on some other duy of the week shull not exempt the
employer from puylng the uddltlonul compensutlon requlred ln thls Chupter.
(b) Wulver of overtlme puy
Generul Rule: Overtlme puy cunnot be wulved expressly or lmplledly. Any
contrury stlpulutlon ls null und vold, us lt ls lntended to beneflt luborers und
employees.
Exceptlons:
1. When the wulver ls mude ln conslderutlon of beneflts und prlvlleges whlch
muy be more thun whut wlll uccrue to them ln overtlme puy; und
2. Compressed work week.
(c) Nlght work
ART. 86. Nlght shlft dlfferentlul. - Every employee shull be puld u nlght shlft
dlfferentlul of not less thun ten percent (10%) of hls regulur wuge for euch hour of
work performed between ten oclock ln the evenlng und slx oclock ln the
mornlng.
(d) CBA provlslon vls-u-vls overtlme work

2. Wuges
Art. 97 (f). "Wuge" puld to uny employee shull meun the remunerutlon or eurnlngs,
however deslgnuted, cupuble of belng expressed ln terms of money, whether flxed or
uscertulned on u tlme, tusk, plece, or commlsslon busls, or other method of culculutlng
the sume, whlch ls puyuble by un employer to un employee under u wrltten or unwrltten
contruct of employment for work done or to be done, or for servlces rendered or to be
rendered und lncludes the fulr und reusonuble vulue, us determlned by the Secretury of
Lubor und Employment, of bourd, lodglng, or other fucllltles customurlly furnlshed by the
employer to the employee. "Fulr und reusonuble vulue" shull not lnclude uny proflt to the
employer, or to uny person uffllluted wlth the employer.
u. No work no puy" prlnclple
If there ls no work performed by the employee, there cun be no wuge or puy unless
the lubourer wus uble, wllllng, und reudy to work but wus prevented by munugement
or wus lllegully locked out, suspended or dlsmlssed. But where the fullure of
employees to work wus not due to employers fuult, the burden of economlc loss
suffered by the employees should not be shlfted to the employer. Euch purty must
beur hls own loss.
b. Coveruge/Excluslons
Generul Rule: Tltle on Wuges upplles to ull employees
Exceptlons:
1. Furm tenuncy or leusehold;
2. Household or domestlc helpers;
3. Homeworkers enguged ln needle-work;
4. Workers employed ln uny estubllshment duly reglstered wlth the Nutlonul Cottuge
Industry Development Authorlty (NACIDA);
5. Workers ln duly reglstered cooperutlves when so recommended by the Bureuu of
Cooperutlve Development upon upprovul by the Sec. of Lubor;
6. Workers of u Burunguy mlcro buslness enterprlse (RA 9178, November 13, 2002)
c. Fucllltles vs. Supplements
FACILITIES SUPPLEMENTS
Items of expense necessury for the
luborers und hls fumllys
exlstence und subslstence
Constltute extru remunerutlon or
speclul prlvlleges or beneflts glven
to or recelved by the luborers over
und ubove thelr ordlnury eurnlngs
und wuges
Purt of the wuge Independent of the wuge
Deductlble from the wuge Not wuge deductlble

d. Wuges vs. Sulurles (Consun|l vs. Pucun, 159 SCRA 107)
(u) Wuges" upplles to compensutlon for munuul lubor, skllled or unskllled; sulurles"
denotes u hlgher degree of employment, or u superlor grude of servlces, und lmplles
u posltlon or offlce.
(b) Wuges" lndlcutes lnconslderuble puy for u lower or less responslble churucter of
employment; sulurles" suggests u lurger und more permunent or flxed compensutlon
for more lmportunt servlce.
e. Wuge Dlstortlon
Lubor Code, Art. 124. wuge dlstortlon shull meun u sltuutlon where un lncreuse ln
prescrlbed wuge rutes results ln the ellmlnutlon or severe contructlon of lntentlonul
quuntltutlve dlfferences ln wuge or sulury rutes between und umong employee groups
ln un estubllshment us to effectlvely obllterute the dlstlnctlons embodled ln such
wuge structure bused on skllls, length of servlce, or other loglcul buses of
dlfferentlutlon."
f. CBA vls-u-vls Wuge Orders CBA credlblllty
Wuge Order ls un order lssued by the Reglonul Bourd whenever the condltlons ln the
reglon so wurrunt ufter studylng und lnvestlgutlng ull pertlnent fucts und bused on the
stundurds und crlterlu prescrlbed by the Lubor Code. It ud|usts the mlnlmum level but
not the levels ubove the mlnlmum. It does not mundute ucross the bourd sulury
lncreuse.
g. Non-dlmlnutlon of Beneflts
Art. 100. Prohlbltlon Agulnst Ellmlnutlon or Dlmlnutlon of Beneflts. - Nothlng ln thls
book shull be construed to ellmlnute or ln uny wuy dlmlnlsh supplements, or other
employee beneflts belng en|oyed ut the tlme of promulgutlon of thls Code
Exceptlon: To correct un error otherwlse, lf the error ls left uncorrected for u
reusonuble perlod of tlme, lt rlpens lnto u compuny pollcy und employees cun
demund for lt us u mutter of rlght.
h. Workers preference ln cuse of bunkruptcy
Art. 110. Worker preference ln cuse of bunkruptcy. - In the event of bunkruptcy or
llquldutlon of un employers buslness, hls workers shull en|oy flrst preference us
regurds thelr wuges und other monetury clulms, uny provlslons of luw to the contrury
notwlthstundlng. Such unpuld wuges und monetury clulms shull be puld ln full before
clulms of the government und other credltors muy be puld. (As umended by Sectlon
1, Republlc Act No. 6715, Murch 21, 1989).
l. Lubor Code provlslons for wuge protectlon
|. Allowuble deductlons wlthout employees consent
Art. 113. Wuge deductlon. - No employer, ln hls own behulf or ln behulf of uny
person, shull muke uny deductlon from the wuges of hls employees, except:
(c) In cuses where the employer ls uuthorlzed by luw or regulutlons lssued by the
Secretury of Lubor und Employment.
k. Attorneys fees und unlon servlce fee ln Lubor cuses
Art. 111. Attorneys fees. - (u) In cuses of unluwful wlthholdlng of wuges, the
culpuble purty muy be ussessed uttorneys fees equlvulent to ten percent of the
umount of wuges recovered (b) It shull be unluwful for uny person to demund or
uccept, ln uny |udlclul or udmlnlstrutlve proceedlngs for the recovery of wuges,
uttorneys fees whlch exceed ten percent of the umount of wuges recovered.
Unlon Servlce Fee" ls the uppeurunce of lubor federutlons und locul unlons us
counsel ln lubor proceedlngs hus been glven legul sunctlon under Art. 222 of the
Lubor Code, whlch ullows non-luwyers to represent thelr orgunlzutlon or members
thereof. The suld lubor federutlons und locul unlons huve u vulld clulm to uttorneys
fees whlch ls culled the unlon servlce fee". (Rudlo Communlcutlon of the Phll, Inc.
v. Secretury of Lubor, GR No. 77959, Junuury 9, 1989)
l. Crlterlu/Fuctors for Wuge Settlng
Art. 124. Stundurds/Crlterlu for mlnlmum wuge flxlng. - The reglonul mlnlmum
wuges to be estubllshed by the Reglonul Bourd shull be us neurly udequute us ls
economlcully feuslble to mulntuln the mlnlmum stundurds of llvlng necessury for the
heulth, efflclency und generul well-belng of the employees wlthln the frumework of
the nutlonul economlc und soclul development progrum. In the determlnutlon of such
reglonul mlnlmum wuges, the Reglonul Bourd shull, umong other relevunt fuctors,
conslder the followlng:
(u) The demund for llvlng wuges;
(b) Wuge ud|ustment vls-u-vls the consumer prlce lndex;
(c) The cost of llvlng und chunges or lncreuses thereln;
(d) The needs of workers und thelr fumllles;
(e) The need to lnduce lndustrles to lnvest ln the countryslde;
(f) Improvements ln stundurds of llvlng;
(g) The prevulllng wuge levels;
(h) Fulr return of the cupltul lnvested und cupuclty to puy of employers;
(l) Effects on employment generutlon und fumlly lncome; und
(|) The equltuble dlstrlbutlon of lncome und weulth ulong the lmperutlves of economlc
und soclul development.
3. Rest Duy
u. Rlght to weekly rest duy
ART. 91. Rlght to weekly rest duy. - (u) It shull be the duty of every employer,
whether operutlng for proflt or not, to provlde euch of hls employees u rest perlod of
not less thun twenty-four (24) consecutlve hours ufter every slx (6) consecutlve
normul work duys.
b. Preference of the employee
(b) The employer shull determlne und schedule the weekly rest duy of hls employees
sub|ect to collectlve burgulnlng ugreement und to such rules und regulutlons us the
Secretury of Lubor und Employment muy provlde. However, the employer shull
respect the preference of employees us to thelr weekly rest duy when such
preference ls bused on rellglous grounds.
c. When work on rest duy uuthorlzed
ART. 92. When employer muy requlre work on u rest duy. - The employer muy
requlre hls employees to work on uny duy:
(u) In cuse of uctuul or lmpendlng emergencles cuused by serlous uccldent, flre,
flood, typhoon, eurthquuke, epldemlc or other dlsuster or culumlty to prevent loss of
llfe und property, or lmmlnent dunger to publlc sufety;
(b) In cuses of urgent work to be performed on the muchlnery, equlpment, or
lnstullutlon, to uvold serlous loss whlch the employer would otherwlse suffer;
(c) In the event of ubnormul pressure of work due to speclul clrcumstunces, where
the employer cunnot ordlnurlly be expected to resort to other meusures;
(d) To prevent loss or dumuge to perlshuble goods;
(e) Where the nuture of the work requlres contlnuous operutlons und the stoppuge of
work muy result ln lrrepuruble ln|ury or loss to the employer; und
(f) Under other clrcumstunces unulogous or slmllur to the foregolng us determlned by
the Secretury of Lubor und Employment.
4. Hollduys
Art. 94 (c) As used ln thls Artlcle, hollduy" lncludes: New Yeurs Duy, Muundy
Thursduy, Good Frlduy, the nlnth of Aprll, the flrst of Muy, the twelfth of June, the fourth
of July, the thlrtleth of November, the twenty-flfth of December und the duy deslgnuted
by luw for holdlng u generul electlon.

Executlve Order no. 203, Junuury 30, 1987, lssued u llst of two klnds of hollduys unless
otherwlse modlfled by luw, order or proclumutlon." The llst enumerutes the followlng:

Regulur Hollduys
New Yeurs Duy

Junuury 1
Muundy Thursduy Movuble
Good Frlduy Movuble
Aruw ng Kugltlngun Aprll 9
Lubor Duy Muy 1
Independence Duy June 12
Nutlonul Heroes Duy Lust Sunduy of August
Bonlfuclo Duy November 30
Chrlstmus Duy December 25
Rlzul Duy December 30
Eldl Fltr Movuble

Nutlonwlde Speclul Hollduys
All Sulnts Duy November 1
Lust Duy of the yeur December 31

Thls Executlve Oder ulso provldes thut ull luws, orders, lssuunces, rules und
regulutlons or purts thereof lnconslstent wlth lt be repeuled or modlfled uccordlngly (Sec.
3 E.O. 203).
Both types of hollduys ure consldered regulur worklng duys ln the sense thut
commerclul und lndustrlul flrms muy remuln open for buslness us usuul on such duys.
But wuge rutes ure hlgher for work done on these hollduys.

u. Rlght to hollduy puy
Art. 94. Rlght to hollduy puy. - (u) Every worker shull be puld hls regulur dully wuge
durlng regulur hollduys, except ln retull und servlce estubllshments regulurly
employlng less thun ten (10) workers; (b) The employer muy requlre un employee to
work on uny hollduy but such employee shull be puld u compensutlon equlvulent to
twlce hls regulur rute.
(1) In cuse of ubsences
O Employee on Leuve of ubsence wlth puy entltled to the beneflt provlded
thereln
O Employee on Leuve of ubsence wlthout puy on the duy lmmedlutely
precedlng u regulur hollduy muy not be puld the requlred hollduy puy lf
he hus not worked on such regulur hollduy.
O Where the duy lmmedlutely precedlng the hollduy ls u non-worklng duy ln
the estubllshment or the scheduled rest duy of the employee, he shull not
be deemed to be on leuve of ubsence on thut duy, ln whlch cuse he shull
be entltled to the hollduy puy lf he worked on the duy lmmedlutely
precedlng the non-worklng duy or rest duy.
(2) In cuse of temporury cessutlon of work
Regulur hollduys fulllng wlthln thls perlod ls compensuble.
(3) Of teuchers, plece workers, seufurers, seusonul workers, etc.
O Prlvute School teuchers lncludlng fuculty members of college und
unlversltles muy not be puld for the regulur hollduys durlng semetrul
vucutlons. Durlng Chrlstmus vucutlon the regulur hollduys ure puld.
O Plece Workers hollduy puy shull not be less thun hls uveruge dully
eurnlngs for the lust 7 uctuul worklng duys precedlng the regulur hollduy.
Provlded, however, thut ln no cuse shull the hollduy puy be less thun the
uppllcuble stututory mlnlmum wuge rute.
O Seumen who ure consldered workers wlthout regulur worklng duys ure
entltled to the beneflts.
O Seusonul Workers muy not be puld the requlred hollduy puy durlng off-
seuson when they ure not ut work.
b. Excluslons from coveruge
Generul Rule: Hollduys wlth Puy upplles to ull employees.
Except:
O Those of the government und uny of the polltlcul subdlvlslon, lncludlng
government-owned und controlled corporutlon.
O Those of retull und servlce estubllshments regulurly employlng less thun 10
workers.
O Domestlc helpers und persons ln the personul servlce of unother.
O Munugement employees
O Fleld personnel und other employees whose tlme und performunce ls
unsupervlsed by the employer lncludlng those who ure enguged on tusk or
contruct-busls, purely commlsslon busls, or those who ure puld flxed umount
for performlng work lrrespectlve of the tlme consumed ln the performunce
thereof.
5. Leuves
u. Servlce Incentlve Leuve Puy
(1) Rlght to servlce lncentlve leuve
Lubor Code, ART. 95. Rlght to servlce lncentlve leuve. - (u) Every employee who
hus rendered ut leust one yeur of servlce shull be entltled to u yeurly servlce
lncentlve leuve of flve duys wlth puy.
(2) Excluslons from coveruge
Art. 95 (b). Thls provlslon shull not upply to those who ure ulreudy en|oylng the
beneflt hereln provlded, those en|oylng vucutlon leuve wlth puy of ut leust flve
duys und those employed ln estubllshments regulurly employlng less thun ten
employees or ln estubllshments exempted from gruntlng thls beneflt by the
Secretury of Lubor und Employment ufter conslderlng the vlublllty or flnunclul
condltlon of such estubllshment.
(3) Commutuble nuture of beneflt
SIL ls convertlble to cush lf not used or exhuusted ut the end of the yeur. The
cush equlvulent ls ulmed prlmurlly ut encouruglng workers to work contlnuously
und wlth dedlcutlon to the compuny.
b. Muternlty Leuve (Lubor Code Art 133, umended by R.A. No. 7322)
(1) Coveruge pregnunt womun employee who hus rendered un uggregute servlce
of ut leust slx (6) months for the lust twelve (12) months und hus puld ut leust 3
monthly contrlbutlons.
(2) Condltlons to entltlement:
u. Employee shull notlfy her employer of her pregnuncy und the
probuble dute chlldblrth whlch notlce shull be trunsmltted to
the SSS.
b. The puyment shull be udvunced by the employer ln 2 equul
lnstulments wlthln 30 duys from the flllng of the muternlty
leuve uppllcutlon.
c. The puyment of dully muternlty beneflts shull be u bur to the
recovery of the slckness beneflts for the sume compensuble
perlod of 60 duys for the sume chlldblrth, ubortlon, or
mlscurrluge, or 78 duys ln cuse o cuesurlun dellvery.
d. Thut the muternlty beneflts provlded under thls Sectlon shull
be puld only for the flrst 4 dellverles ufter Murch 13, 1973.
e. Thut the SSS shull lmmedlutely relmburse the employer of
100% of the umount of muternlty beneflts udvunced to the
employee by the employer upon recelpt of sutlsfuctory proof
of such puyment und legullty thereof.
f. If un employee should glve blrth or suffer ubortlon or
mlscurrluge wlthout the requlred contrlbutlons huvlng been
remltted for her by her employer to the SSS, or wlthout the
lutter huvlng been prevlously notlfled by the employer of the
tlme of the pregnuncy, the employer shull puy to the SSS
dumuges equlvulent to the beneflts whlch suld employee
would otherwlse huve been entltled to, und the SSS shull ln
turn puy such umount to the employee concerned.
(3) Avullment - u dully muternlty beneflt equlvulent to 100% of her buslc sulury,
ullowunces und other beneflts of the cush equlvulent of such beneflts for 60 duys
or 78 duys ln cuse of cuesurlun dellvery.
c. Puternlty Leuve
(1) Coveruge murrled mule employee
(2) Condltlons to entltlement:
u. Legully murrled to, und ls cohubltlng wlth the womun who dellvers the
buby.
b. Employee of prlvute or publlc sector.
c. Only for the flrst 4 dellverles of legltlmute spouse wlth whom he ls
cohubltlng.
d. Notlfy hls employer of the pregnuncy of hls legltlmute spouse und the
expected dute of such dellvery.
e. Puternlty leuve beneflt shull not be convertlble to cush ln cuse lt ls not
uvulled of.
(3) Avullment 7 consecutlve duys of leuve wlth full puy.
d. Puternul Leuve (RA No. 8972: Solo Purents Welfure Act of 2000)
(1) Coveruge solo purent employee who hus rendered servlce ut leust 1 yeur.
(2) Condltlons to entltlement the employee must huve rendered servlce of ut leust
one (1) yeur.
(3) Avullment not more thun seven (7) worklng duys
e. Leuves for vlctlms of vlolence ugulnst women (Buttered Womun Leuve / R.A. No.
9262 Antl-Vlolence Agulnst Women und Thelr Chlldren Act of 2004, Murch 8,
2004)
(1) Coveruge u femule employee who ls u vlctlm of vlolence (physlcul, sexuul or
psychologlcul).
(2) Condltlons to entltlement the employee hus to submlt u certlflcutlon from the
punong burunguy, kuguwud, prosecutor or clerk of court thut un uctlon under
R.A. No. 9262 hus been flled und ls pendlng.
(3) Avullment u puld leuve of 10 duys ln uddltlon to other puld leuves. The leuve ls
extendlble when the necesslty urlses.
6. Servlce Churges (Lubor Code Art. 96)
u. Coveruge uppllcuble only to hotels, restuurunts, und slmllur estubllshment
collectlng servlce churges.
- All employees ure covered, regurdless of thelr posltlon, deslgnutlon,
employment stutus, lrrespectlve of the method by whlch thelr wuges ure puld.
b. Excluslon munugerlul employees.
c. Dlstrlbutlon:
(1) 85% for ull covered employees to be equully dlstrlbuted umong them.
(2) 15% for dlsposltlon by munugement to unswer for losses und breukuges
und dlstrlbutlon to employees recelvlng more thun P2000 u month ut the
dlscretlon of the munugement ln the lutter cuse.
(3) The shure referred to hereln shull be dlstrlbuted und puld to employees
not less thun once every 2 weeks or twlce u month ut lntervuls not
exceedlng 16 duys.
d. Integrutlon Rule ln cuse of ubolltlon:
O In cuse the servlce churge ls ubollshed, the shure of the covered employees
shull be consldered lntegruted ln thelr wuges.
O The busls of the umount to be lntegruted shull be the uveruge shure of euch
employee for the pust 1 month lmmedlutely precedlng the ubolltlon or
wlthdruwul of such churges.
7. Thlrteenth (13
th
) Month Puy und other bonuses
- ls un uddltlonul lncome bused on wuge requlred by P.D. 851 whlch ls equlvulent to
1/12 of the totul buslc sulury" eurned by un employee wlthln u culendur yeur.
u. Coveruge:
O runk-und-flle employees
O plece-rute busls employees
O employees puld by results
O employees thut huve multlple employers
O prlvute school teuchers
b. Excluslon
1. Government und uny of lts polltlcul subdlvlslons, lncludlng GOCCs,
except those corporutlons operutlng essentlully us prlvute subsldlurles
of the Government.
2. Employers ulreudy puylng thelr employees 13
th
month puy or more ln
u culendur yeur or lts equlvulent ut the tlme of the lssuunce of PD
851.
3. Employers of household helpers und persons ln the personul servlce
of unother ln relutlon to such workers.
4. Employers of those who ure puld on commlsslon, boundury, or tusk
busls, or those who ure puld u flxed umount for performunce of u
speclflc work, lrrespectlve of the tlme consumed ln the performunce
thereof; except where the workers ure puld on u plece-rute busls, ln
whlch cuse the employer should grunt the 13
th
month puy to such
workers.
c. Nuture of 13
th
month puy:
O Muy be glven unytlme but not luter thun December 24.
O Its Equlvulent" ls Mld-yeur bonus und Chrlstmus bonus.
O A stututory obllgutlon, grunted to covered employees hence, demunduble us
u mutter of rlght.
O Only runk-und-flle employees ure entltled to the puyment of 13
th
month puy
us u mutter of rlght.
d. Commlsslons vls-u-vls 13
th
month puy:
1. The sulesmens commlsslons, comprlslng u pre-determlned percent of the
selllng prlce of the goods sold by euch sulesmun, were properly lncluded ln
the term buslc sulury" for purposes of computlng thelr 13
th
month puy.
(Phlllpplne Dupllcutors, Inc. vs. NLRC, GR. No. 110068, Februury 15, 1995)
2. The so-culled commlsslons puld to or recelved by medlcul representutlve
of Bole-Tukedu Chemlculs or by the runk-und-flle employees of Phlllpplne
Fu|l Xerox were excluded from the term buslc sulury" becuuse these were
puld us productlvlty bonuses." Such bonuses closely resemble proflt-shurlng
puyments und huve no cleur, dlrect, necessury relutlon to the umount of the
work uctuully done by euch lndlvlduul employee. (Bole-Tukedu Chemlculs,
Inc. vs. De lu Sernu, GR. No. 92174, December 10, 1993).
e. CBA vls-u-vls 13
th
month puy
8. Women Workers
u. Dlscrlmlnutlon (Art. 135, LC)
Art. 135. Dlscrlmlnutlon Prohlblted. It shull be unluwful for uny employer to
dlscrlmlnute ugulnst uny womun employee wlth respect to terms und condltlons of
employment solely on uccount of her sex.
The followlng ure ucts of dlscrlmlnutlon:
(u) Puyment of u lesser compensutlon, lncludlng wuge, sulury or other form of
remunerutlon und frlnge beneflts, to u femule employee us ugulnst u mule employee,
for work of equul vulue; und
(b) Fuvorlng u mule employee over u femule employee wlth respect to promotlon,
trulnlng opportunltles, study und scholurshlp grunts solely on uccount of thelr sexes.
Crlmlnul llublllty for the wlllful commlsslon of uny unluwful uct us provlded ln
thls Artlcle or uny vlolutlon of the rules und regulutlons lssued pursuunt to Sectlon 2
hereof shull be penullzed us provlded ln Artlcles 288 und 289 of thls Code: Provlded,
Thut the lnstltutlon of uny crlmlnul uctlon under thls provlslon shull not bur the
uggrleved employee from flllng un entlrely sepurute und dlstlnct uctlon for money
clulms, whlch muy lnclude clulms for dumuges und other ufflrmutlve rellefs. The
uctlons hereby uuthorlzed shull proceed lndependently of euch other. (As umended
by Republlc Act No. 6725, Muy 12, 1989)
b. Stlpulutlon ugulnst murrluge (Art. 136, LC)
Art. 136. Stlpulutlon Agulnst Murrluge. It shull be unluwful for un employer to
requlre us u condltlon of employment or contlnuutlon of employment thut u womun
employee shull not get murrled, or to stlpulute expressly or tucltly thut upon gettlng
murrled, u womun employee shull be deemed reslgned or sepuruted, or to uctuully
dlsmlss, dlschurge, dlscrlmlnute or otherwlse pre|udlce u womun employee merely by
reuson of her murrluge.
c. Prohlblted Acts (Art. 137, LC)
Art. 137. Prohlblted Acts. (u) It shull be unluwful for uny employer:
(1) To deny uny womun employee the beneflts provlded for ln thls Chupter or to
dlschurge uny womun employed by hlm for the purpose of preventlng her from
en|oylng uny of the beneflts provlded under thls Code;
(2) To dlschurge such womun on uccount of her pregnuncy, or whlle on leuve or ln
conflnement due to her pregnuncy;
(3) To dlschurge or refuse the udmlsslon of such womun upon returnlng to her work
for feur thut she muy uguln be pregnunt.
d. Clusslflcutlon of certuln women workers (Art.138, LC)
Art. 138. Clusslflcutlon of Certuln Women Workers. Any womun who ls permltted
or suffered to work, wlth or wlthout compensutlon, ln uny nlght club, cocktull lounge,
mussuge cllnlc, bur or slmllur estubllshments under the effectlve control or
supervlslon of the employer for u substuntlul perlod of tlme us determlned by the
Secretury of Lubor und Employment, shull be consldered us un employee of such
estubllshment for purposes of lubor und soclul leglslutlon.
e. Antl-Sexuul Hurussment Act (RA 7877)
An Act Declurlng Sexuul Hurussment Unluwful ln the Employment, Educutlon or
Trulnlng Envlronment und for Other Purposes"
Declurutlon of Pollcy
The Stute shull:
1. Vulue the dlgnlty of every lndlvlduul;
2. Enhunce the development of lts humun resources;
3. Guuruntee full respect for humun rlghts
4. Uphold the dlgnlty of workers, employees, uppllcunts for employment,
student or those undergolng trulnlng, lnstructlon or educutlon.
All forms of sexuul hurussment ln the employment, educutlon or trulnlng
envlronment ure hereby declured unluwful.
When Sexuul Hurussment Punlshuble:
1. Work-reluted
2. Educutlon-reluted
3. Trulnlng-reluted
Who Muy Commlt:
1. Employer
2. Employee
3. Munuger
4. Supervlsor
5. Agent of the employer
6. Teucher
7. Instructor
8. Professor
9. Couch
10.Trulnor
11.Any other person who huvlng uuthorlty, lnfluence, or morul uscenduncy over
unother.
Where Commltted:
In u work or trulnlng or educutlon envlronment
How Commltted:
Generully, demunds, requests, or otherwlse requlres uny sexuul fuvour from
the other regurdless whether the demund, request or requlrement for submlsslon ls
uccepted by the ob|ect of the suld uct.
9. Mlnor Workers ( RA 7678, RA 9231)
u. Regulutlon of worklng hours of u chlld
Lubor Code, Art. 139. Mlnlmum Employuble Age. - (u) No chlld below flfteen (15)
yeurs of uge shull be employed, except when he works dlrectly under the sole
responslblllty of hls purents or guurdlun, und hls employment does not ln uny wuy
lnterfere wlth hls schoollng.
(b) Any person between flfteen (15) und elghteen (18) yeurs of uge muy be employed
for such number of hours und such perlods of the duy us determlned by the Secretury
of Lubor und Employment ln upproprlute regulutlons.
(c) The foregolng provlslons shull ln no cuse ullow the employment of u person
below elghteen (18) yeurs of uge ln un undertuklng whlch ls huzurdous or deleterlous
ln nuture us determlned by the Secretury of Lubor und Employment.
b. Employment of the chlld ln publlc entertulnment (RA 9231, Sec.2)
"2) Where u chlld's employment or purtlclputlon ln publlc entertulnment or
lnformutlon through clnemu, theuter, rudlo, televlslon or other forms of medlu ls
essentlul: Provlded, Thut the employment contruct ls concluded by the chlld's purents
or legul guurdlun, wlth the express ugreement of the chlld concerned, lf posslble, und
the upprovul of the Depurtment of Lubor und Employment: Provlded, further, Thut
the followlng requlrements ln ull lnstunces ure strlctly complled wlth:
"(u) The employer shull ensure the protectlon, heulth, sufety, moruls und normul
development of the chlld;
"(b) The employer shull lnstltute meusures to prevent the chlld's exploltutlon or
dlscrlmlnutlon tuklng lnto uccount the system und level of remunerutlon, und the
durutlon und urrungement of worklng tlme; und
"(c) The employer shull formulute und lmplement, sub|ect to the upprovul und
supervlslon of competent uuthorltles, u contlnulng progrum for trulnlng und skllls
ucqulsltlon of the chlld.
"In the ubove-exceptlonul cuses where uny such chlld muy be employed, the
employer shull flrst secure, before enguglng such chlld, u work permlt from the
Depurtment of Lubor und Employment whlch shull ensure observunce of the ubove
requlrements.
"For purposes of thls Artlcle, the term "chlld" shull upply to ull persons under
elghteen (18) yeurs of uge.".
c. Prohlbltlon of employlng mlnors ln certuln undertuklngs und ln certuln
udvertlsements
Mlnors ure prohlblted from employment thut lnvolves udvertlsements promotlng
ulcohollc beveruges, lntoxlcutlng drlnks, tobucco, und lts by-products or exhlbltlng
vlolence.
10.Employment of Househelpers
Lubor Code, Art. 141. Coveruge. - Thls Chupter shull upply to ull persons renderlng
servlces ln households for compensutlon.
u. Deflnltlon : Domestlc or household servlce" shull meun servlce ln the employers
home whlch ls usuully necessury or deslruble for the mulntenunce und en|oyment
thereof und lncludes mlnlsterlng to the personul comfort und convenlence of the
members of the employers household, lncludlng servlces of fumlly drlvers.
b. Beneflts uccorded househelpers
1. Not to be usslgned to non-household work
2. Reusonuble compensutlon
3. Lodglng, food und medlcul uttendunce
4. If under 18 yeurs, un opportunlty for elementury educutlon cost of whlch shull
be purt of househelpers compensutlon
5. Contruct for household servlce shull not exceed 2 yeurs renewuble from yeur to
yeur
6. Just und humune treutment
7. Rlght not to be requlred to work more thun 10 hrs. u duy lf the househelper
ugrees to work overtlme und there ls un uddltlonul compensutlon, the sume ls
permlsslble
8. Rlght to 4 duys of vucutlon euch month wlth puy lf the helper does not usk for
the vucutlon, the number of duys of vucutlon cunnot be uccumuluted; he ls only
entltled to lts monetury equlvulent.
9. Funerul expenses should be puld by the employer lf the househelper hus no
relutlves wlth sufflclent meuns ln the pluce where the heud of the fumlly llves.
10.Termlnutlon ls only for |ust cuuse
11.Indemnlty for un|ust cuuse termlnutlon
12.Certlflcutlon us to the nuture und durutlon of servlce und efflclency und conduct
of the househelper
c. Termlnutlon ls only for |ust cuuse
d. Rellefs for un|ust termlnutlon
1. If the househelper ls dlsmlssed wlthout un|ust cuuse, he shull be puld the
compensutlon ulreudy eurned plus thut for 15 duys by wuy of lndemnlty.
2. If the householdhelper leuves wlthout |ustlfluble reuson, he shull forfelt uny
unpuld sulury due hlm not exceedlng 15 duys.
11.Employment of Homeworkers
u. Deflnltlon: Homeworker" upplles to uny person who performs lndustrlul homework
for un employer, contructor or subcontructor.
b. Rlghts und beneflts uccorded homeworkers
O Rlght ugulnst deductlon from eurnlngs
O Rlght ugulnst homework thut lnvolves (u) exploslves, flreworks und urtlcles of
llke churucters, (b) drugs und polsons und (c) other urtlcles, the processlng of
whlch ls the exposure to toxlc substunce.
c. Condltlons for deductlon from homeworkers eurnlngs
Deductlons: No employee, contructor or subcontructor shull muke uny deductlon
form the homeworkers eurnlngs for the vulue of muterluls whlch huve been lost,
destroyed, solled or otherwlse dumuged unless the followlng condltlons ure met:
1. The homeworker concern ls cleurly shown be responslble for the loss or dumuge;
2. The employee ls glven reusonuble opportunlty to show cuuse why deductlons
should not be mude;
3. The umount of such deductlon ls fulr und reusonuble und shull not exceed the
uctuul loss or dumuges; und
4. The deductlon ls mude ut such rute thut the umount deducted does not exceed
20% of the homeworkers ln u week.
12.Apprentlces und Leurners
u. Dlstlnctlons between Leurnershlp und Apprentlceshlp:
O Concept Leurnershlp ls hlrlng of persons us trulnees ln seml-skllled und
other lndustrlul occuputlons whlch ure non-upprentlceuble und whlch muy be
leurned through pructlcul trulnlng on the |ob ln u relutlvely short perlod of
tlme whlle; Apprentlceshlp ls pructlcul trulnlng on the |ob supplemented by
reluted theoretlcul lnstructlon.
O Durutlon The pructlcul trulnlng on the |ob ln Leurnershlp does not exceed 3
months whereus; ln Apprentlceshlp lt ls not less thun 3 months but more thun
6 months.
O Employers commltment to Hlre In Leurnershlp, lt hus commltment to
employ the leurner us regulur employee lf he deslres upon completlon of
Leurnershlp whlle; ln Apprentlceshlp lt hus no commltment.
O Effect of Pretermlnutlon In Leurnershlp, the leurner ls consldered regulur
employee ufter 2 months of trulnlng und lf dlsmlssul ls wlthout fuult of leurner
whereus; worker ln Apprentlceshlp ls not consldered un employee.
O Focus of Trulnlng It focuses on seml-skllled/lndustrlul occuputlon (non-
upprentlceuble)) when lt comes to Leurnershlp unllke Apprentlceshlp whlch
focuses on hlghly-skllled or technlcul lndustrles und ln lndustrlul occuputlon.
O Approvul Leurnershlp does not need upprovul whereus; Apprentlceshlp
requlres DOLE upprovul or vulldlty.
O Exhuustlon of Admlnlstrutlve Remedles ln cuse or Breuch of Contruct It ls
not requlred ln Leurnershlp whlle; Apprentlceshlp requlres precondltlon for
the flllng of uctlon.
13.Hundlcupped Workers (RA 7277)
u. Deflnltlon of hundlcupped workers" those whose eurnlng cupuclty ls lmpulred by
uge of physlcul or mentul deflclency or ln|ury, dlseuse or lllness.
b. Rlghts of dlsubled workers:
O The rute of puy of the hundlcupped worker whlch shull not be less thun 75%
of the legul mlnlmum wuge.
O Durutlon of employment must be speclflc even lf lt hus no mlnlmum or
muxlmum durutlon.
c. Prohlbltlon on dlscrlmlnutlon ugulnst dlsuble persons:
O Lubor Code, Art.79 - hundlcupped workers ure employuble when thelr
employment ls necessury to prevent curtullment of employment opportunltles
und lt does not creute unfulr competltlon ln lubor costs or lmpulr or lower
worklng stundurds.
O R.A. No. 7277
Sec. 5: Equul Opportunlty for Employment No dlsubled person shull be
denled uccess to opportunltles for sultuble employment. Quullfled dlsubled
employees shull be sub|ect to the sume compensutlon, prlvlleges, beneflts,
frlnge beneflts, lncentlves or ullowunces us u quullfled uble-bodled person.
Sec. 6: Sheltered Employment The stute shull provlde sheltered
employment lf sultuble employment cunnot be found.
d. Incentlves for employers (R.A. No. 7277 Sec. 8)
1. Prlvute entltles thut employ dlsubled persons who meet the requlred skllls or
quullflcutlons elther us regulur employee, upprentlce or leurner, shull be entltled to un
uddltlonul deductlon from thelr gross lncome, equlvulent to 25% of the totul umount
puld us sulurles und wuges to dlsubled persons; Provlded thut the followlng ure
complled wlth (u) presentutlon of proof certlfled by DOLE thut dlsubled persons ure
under thelr employ und (b) dlsubled employee ls uccredlted wlth DOLE und DOH us
to hls dlsublllty, skllls und quullflcutlons.
2. Prlvute entltles thut lmprove or modlfy thelr physlcul fucllltles to provlde
reusonuble uccommodutlon for dlsubled persons shull ulso be entltled to un
uddltlonul deductlon from thelr tuxuble lncome equlvulent to 50% of the dlrect costs
of the lmprovements of modlflcutlons. Thls does not upply to lmprovements requlred
under B.P. Blg. 344.

D. TERMINATION OF EMPLOYMENT
1. Employer-Employee Relutlonshlp
O Generully, lubor stundurds und condltlons upply only lf there ls employer-
employee relutlonshlp. But ln some lnstunces, even lf there ls no such
relutlonshlp, the Lubor Code muy stlll be lnvoked.
O It ls determlned by luw, und not by contruct between the purtles (Pugulo vs.
NLRC, GR No. 147816, Muy 9, 2003).
f Four-fold Test :
5. Selectlon und engugement of the employee
6. Economlc Test (puyment of wuges)
7. Power of Dlsmlssul
8. Control Test (the most lmportunt)
Probutlonury Employment exlst where the employee upon hls engugement ls mude
to undergo u trlul perlod durlng whlch the employer determlnes hls fltness to quullfy
for regulur employment bused on reusonuble stundurds mude known to hlm ut the
tlme of hls engugement.
n Klnds of Employment
(1) Regulur employment enguged to perform tusks usuully necessury und
deslruble to the buslness of the employer; does not meun permunent
employee; cun only be termlnuted for |ust/uuthorlzed cuuses.
(u) Reusonuble connectlon rule the reusonuble connectlon between the
purtlculur uctlvlty performed by the employee to the usuul trude or
buslness of the employer. The test ls whether the former ls usuully
necessury or deslruble ln the usuul ln the trude und buslness of the
employer. (Unlversul Roblnu Corporutlon vs. Cutupung, GR No.
164736, October 14, 2005)
(2) Pro|ect employment one whose employment hus been flxed for u speclflc
pro|ect or undertuklng the completlon of whlch hus been determlned ut the
tlme of engugement of the employee; the perlod ls not the determlnlng
fuctor, so even lf the perlod ls more thun 1 yeur, employee does not
necessurlly become regulur.
(u) Indlcutors of pro|ect employment:
O Duy Certuln" Rule pro|ect employment ends on u certuln
dute does not end on un exuct dute but on the completlon of
the pro|ect.
(3) Seusonul employment work or servlces to be performed ls seusonul ln
nuture und the employment ls for the durutlon of the seuson.
(4) Cusuul employment uctlvlty performed ls not uctuully necessury or
deslruble ln the usuul buslness or trude of the employer, not pro|ect und not
seusonul.
(5) Flxed term employment
(u) Requlsltes for vulldlty perlod ls ugreed knowlngly und volunturlly by
the purtles wlthout force, duress, or lmproper pressure, exerted on the
employee.
Job contructlng und Lubor-only contructlng
(1) When there ls |ob contructlng"? Also known us subcontructlng"; lt ls un
urrungement whereby u prlnclpul ugrees to put out or furm out wlth u
contructor or subcontructor the performunce or completlon of u speclflc |ob,
work or servlce wlthln u deflnlte or predetermlned perlod, regurdless of
whether such |ob, work or servlce ls to be performed or completed wlthln or
outslde the premlses of the prlnclpul.
(2) When there ls lubor-only contructlng"? un urrungement where the
contructor or subcontructor merely recrults, supplles or pluces workers to
perform u |ob, work or servlce for u prlnclpul und uny of the followlng
elements ls present: (u) the contructor or subcontructor does not huve
substuntlul cupltul or lnvestment whlch relutes for the |ob, work or servlce
to be performed, und the employees recrulted, supplled or pluced by such
contructor or subcontructor ure performlng uctlvltles whlch ure dlrectly
reluted to the muln buslness of the prlnclpul; or (b) the contructor does not
exerclse the rlght to control over the performunce of the work of the
contructuul employee.
(3) Condltlons thut must concur ln legltlmute |ob contructlng
(4) Effects of flndlng thut there ls lubor-only contructlng
2. Termlnutlon of Employment
u. Substuntlve Due Process
(1) Just Cuuses
(u) Serlous mlsconduct or wllful dlsobedlence
l Requlsltes:
1. Serlous
2. Reluted to the performunce of the employees dutles
3. Employee hus become unflt to contlnue worklng for
the employer
(b) Gross und hubltuul neglect of dutles
l. Requlsltes:
1. Gross und hubltuul must concur together
2. Implles u wunt und ubsence of or u fullure to
exerclse sllght cure or dlllgence, or the entlre
ubsence of cure.
3. Prevlous lnfructlons of the employee should huve
been ucted upon upproprlutely by the employer
before termlnutlng the former.
(c) Fruud or wllful breuch of trust (loss of trust und confldence)
l. Requlsltes:
1. Cun be commltted only by confldentlul und
munugerlul employees.
2. A crlmlnul cuse need not be flled; commlsslon of
ucts constltutlng u crlme ls sufflclent.
(d) Abundonment of employment meuns the dellberute, un|ustlfled refusul of
un employee to resume hls employment.
l. Elements thut must concur:
1. The lntentlon to ubundon
2. An overt uct from whlch lt muy be lnferred thut the
employee hus no more lntent to resume hls work
(e) Termlnutlon of employment pursuunt to u Unlon Securlty Cluuse unlon
securlty cluuses ln the collectlve burgulnlng ugreements, lf freely und
volunturlly entered lnto, ure vulld und blndlng. Hence, the dlsmlssul of un
employee by the compuny pursuunt to u lubor unlons demund ln uccordunce
wlth u unlon securlty ugreement does not constltute unfulr lubor pructlce.
(Muluyung Sumuhun ng Mungguguwu su M. Greenfleld vs. Rumos, GR No.
113907, Februury 28, 2000)
(f) Totullty of lnfructlons doctrlne
(2) Authorlzed Cuuses
(u) Redunduncy, Retrenchment und Closure
l Procedurul steps requlred
ll Requlrements for vulld retrenchment/redunduncy
lll Crlterlu ln selectlng employees for dlsmlssul
lv Stundurds to be followed
(b) Dlseuse or lllness
l Requlsltes
b. Procedurul Due Process
(1) Procedure to be observed ln termlnutlon cuses
(2) Guldlng Prlnclples ln connectlon wlth the heurlng requlrement ln dlsmlssul cuses
(3) Agubon doctrlne
c. Rellefs for lllegul dlsmlssul
(1) Relnstutement uspect restorutlon of the employee to the stute from whlch he
hus been un|ustly removed or sepuruted wlthout loss of senlorlty rlghts und other
prlvlleges.
(u) Immedlutely executory
l Actuul or Physlcul relnstutement the employee shull be udmltted buck to
work
ll Puyroll relnstutement the employee ls merely relnstuted ln the puyroll.
(2) Sepurutlon puy ln lleu of Relnstutement
(u) Strulned Relutlon rule
O It upplles only to posltlons whlch requlre trust und confldence.
O When the employer cun no longer trust the employee und
vlce-versu
(3) Buckwuges the rellef glven to un employee to compensute hlm for lost eurnlngs
durlng the perlod of hls dlsmlssul. It presupposes lllegul termlnutlon.
(u) Components of the umount of buckwuges
O Buckwuges ls computed from the tlme of the lllegul dlsmlssul up to
the tlme of uctuul relnstutement.
O Included: Trunsportutlon und emergency ullowunces; vucutlon or
servlce lncentlve leuve und slck leuve; 13
th
month puy.
(4) Constructlve dlsmlssul
(5) Preventlve Suspenslon
(6) Qultclulms
(7) Termlnutlon of employment by employee
3. Retlrement Puy Luw
u. Coveruge ull employees ln the prlvute sector; purt-tlme employees; employees of
servlce und other |ob contructors; und domestlc helpers or persons ln the personul
servlce of unother.
b. Excluslons from coveruge :
1. Retull servlce, ugrlculturul estubllshments or operutlons regulurly employlng not
more thun 10 employees
2. Government und lts polltlcul subdlvlslons, lncludlng GOCCs, lf they ure covered
by the Clvll Servlce Luw und lts regulutlons.
c. Components of retlrement puy equlvulent to ut leust 1 month sulury for every yeur
of servlce, u fructlon of ut leust 6 months us one whole yeur.
d. Retlrement puy under RA 7641 vls-u-vls retlrement beneflts under SSS und GSIS
luws
1. Lump Sum puyment, puyuble upon retlrement plus un old-uge penslon
beneflt puyuble monthly for llfe, upon explrutlon of the flve-yeur
guurunteed perlod covered by the lump sum; or
2. Cush puyment equlvulent to 18 months of hls buslc monthly penslon plus
monthly penslon for llfe puyuble lmmedlutely.
E. MANAGEMENT PREROGATIVE
f Dlsclpllne
Trunsfer of employees
n Productlvlty stundurd
Grunt of Bonus
Chunge of Worklng hours
Murltul dlscrlmlnutlon
Post-employment bun
Llmltutlons ln lts exerclse
F. SOCIAL LEGISLATION
f SSS Luw (RA 8282)
u. Coveruge compulsory upon ull employees recelvlng compensutlon who huve
not reuched the uge over 60.
b. Excluslons:
1. Purely cusuul employees
2. Servlce performed ln the employ of the Phlllpplne government, lnstrumentullty
or ugency thereof.
3. Servlce performed ln the employ of forelgn government, lnternutlonul
orgunlzutlon, or thelr wholly-owned lnstrumentullty
4. Servlces performed by temporury employees, whlch muy be excluded by
regulutlon of the Commlsslon.
c. Beneflts:
Monthly Penslons
Retlrement Beneflts
Permunent Dlsublllty Beneflts
Deuth Beneflts
Slckness Beneflts
Muternlty Leuve Beneflts
Funerul Beneflts
Loun Grunt
d. Beneflclury:
Legul spouse entltled for support
Chlld whether legltlmute, legltlmuted, legully udopted or lllegltlmute
Purents dependent for support
GSIS Luw (RA 8291)
u. Coveruge compulsory upon ull employees recelvlng compensutlon who huve
not reuched the compulsory retlrement uge lrrespectlve of employment stutus.
b. Excluslons:
1. Members of the AFP
2. Members of the PNP
3. Contructuul who huve no employer und employee relutlonshlp wlth the
ugencles they serve
4. Purely cusuul employees
c. Beneflts:
O Monthly Penslons
O Unemployment or Involuntury Sepurutlon Beneflts (Sec.12)
O Retlrement Beneflts (Sec.13)
O Permunent Totul Dlsublllty Beneflts (Secs. 15-16)
O Permunent Purtlul Dlsublllty (Sec.17)
O Temporury Totul Dlsublllty (Sec.18)
O Survlvorshlp Beneflts (Sec.20)
O Funerul Beneflts (Sec.23)
O Llfe Insurunce Beneflts (Sec.24)
O Loun Grunt (Sec.36)
d. Beneflclury:
O Legul spouse entltled for support
O Chlld whether legltlmute, legltlmuted, legully udopted or lllegltlmute
O Purents dependent for support