University of the Cordilleras

Constitutional Mandates on
Labor, Labor Law
Labor Legislation, Social
Legislation
 As an act: Exertion by human beings of
physical or mental efforts, or both, towards
the production of goods and services.
 As a sector of society: That sector or group in
a society, which derives its livelihood chiefly
from rendition of work or services in
exchange for compensation under managerial
direction (Mendoza, 2001).
 Refers to workers, whether agricultural or
non-agricultural
 Does not necessarily exclude the application
of skill, thus there is skilled and unskilled
labor.
 Skill
◦ familiar knowledge of any art or science, and
◦ readiness and dexterity in execution or
performance or in the application of the art or
science to practical purposes.
 Constitutional provisions on labor are not self-executory,
hence the need for Social Legislation, Labor Legislation
and Welfare Legislation
 Social Legislation - Laws that provide particular kinds of
protection or benefits to society or segments thereof in
furtherance of social justice.
 Labor Legislation - Statutes, regulations and jurisprudence
governing the relations between capital and labor. It
provides for certain employment standards and a legal
framework for negotiating, adjusting and administering
those standards and other incidents of employment.
 Welfare Legislation - Provides for the minimum economic
security, of the worker and his family in case, of loss of
earnings due to death, old age, disability, dismissal, injury
or disease.
 Labor Legislation Social Legislation
Governs the effects of
Effect to Employment Directly affects employment
employment

Designed to meet the daily

Purpose Involves long range benefits
needs of workers

Covers employment for Covers employment for profit

Coverage
profit or gain
Effect to Employee Affects work of employee
Benefits are paid by the
Payor
worker’s employer
and non-profit
Affects life of employee
Benefits are paid by
government agencies

Social legislation encompasses labor legislation, thus is broader in scope

than the latter. All labor laws are social legislations but not all social
legislations are labor laws.
 The law governing the rights and duties of
employers and employees with respect to Labor
Standards and Labor Relations.
 Labor Standards Law deals with the minimum
standards as to wages, hours of work and other
terms and conditions of employment that
employers must provide their employees.
 Labor Relations Law defines the status, rights
and duties as well as the institutional
mechanisms that govern the individual and
collective interactions between employers,
employees and their representatives.
 Attainment of Social Justice
◦ Balance the interest of labor and capital (eliminate
oppression)
◦ Labor is afforded a greater measure of protection
 There is greater supply of labor than demand for their
services;
 Those who have less in life should have more in law;
 The need for employment by labor comes from vital,
and even desperate necessity (survival);
Constitutional Provisions
◦ Art. II, Secs. 10, 18 & 20; Art. XIII, Sec. 1-3
Definition/Balancing of Interest
◦ Calalang v. Williams, 70 Phil. 726 (1940)
◦ Tirazona v. Phil. EDS Techno-service, 576 SCRA 625
(2009)
Foundation: Police Power and State Protection
◦ St. Luke’s Med. Center Employee’s Foundation-AFW
(SLMCEA-AFW) v. NLRC, 517 SCRA 677 (2007)
Limits of Use
◦ PLDT v. NLRC, 164 SCRA 671 (1988)
 International Instruments
 International Covenant on Civil and Political
Rights, Art. 22
 International Covenant on Economic, Social and
Cultural Rights, Arts. 6, 7, 8, 9
 International Convention on the Elimination of All
Forms of Discrimination Against Women, Art. 11
 International Labor Organization (ILO) Conventions
◦ International School Alliance of Educators v. Quisumbing, 333 SCRA 13 (2000)
 1987 Constitution, Art. II, Secs. 5, 9, 10, 11, 13, 14, 18; Art. XIII,
Secs. 1, 3, 14
◦ (For reference) 1935 Const., Art. XIV, Sec., 6; 1973 Const., Art. II, Sec. 9
 Labor Code (LC) and Omnibus Rules Implementing the Labor Code
 New Civil Code of the Philippines (NCC), Arts. 19, 21, 1700-1701
 Collective Bargaining Agreement, Art. 1305-1306, NCC
◦ DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112 (2003)
 Past Practices
◦ American Wire and Cable Daily Rated Employees Union American Wire and
Cable Co., Inc., 457 SCRA 684 (2005)
 Company Policies
◦ China Banking Corporation v. Borromeo, 440 SCRA 621 (2004)
Preliminary Discussions on the
Labor Code
 Decree Title, Art. 1
 Effectivity, Art. 2
 Policy Declaration, Art. 3
 Construction in Favor of Labor, Art. 4
◦ Peñaflor v. Outdoor Clothing Manufacturing
Corp., et al., 618 SCRA 208 (2010)
 Rule Making Power, Art. 5
◦ Kapisanang Manggagawang Pinagyakap v. NLRC
& Franklin Baker Co. of the Philippines, 152 SCRA
96 (1997)
 Technical Rules Not Binding, Art. 221
◦ Ma. Ligaya B. Santos v. Litton Mills, Inc., 652 SCRA 510 (2011)
◦ Building Care Corp. v. Macaraeg, G.R. No. 198357, 10 Dec.
2012
 Applicability, Art. 6, 276; Constitution, Art. IX-B, Sec.
2(1)
 Enforcement and Sanctions – Arts. 217 (a) (2), (3), (4),
(6); 128-129; 288-292; Const., Art III, Secs. 11 and 16
◦ Cireneo Bowling Plaza, Inc. v. Sensing, 448 SCRA 175 (2005)
◦ People’s Broadcasting Service (Bombo Radyo Phils., Inc.) v.
SOLE, et al., 667 SCRA 538 (2012)
◦ Raul C. Cosare v. Broadcom Asia, Inc., G.R. No. 201298. 5 Feb.
2014
 The state shall afford full protection to labor,
promote full employment, equal work
opportunities without bias or discrimination,
regulate the relations of employers and
employees, and assure workers rights (refer
to protection to labor clause Art. XIII, Sec. 3,
1987 Const. & Art. 3, Labor Code);
 The relation of capital and labor are
impressed with public interest, hence
employment contracts are not ordinary
contracts (Art. 1700, NCC);
 In case of doubt or ambiguity, labor laws and
rules are to be construed in favor of labor (Art. 4,
Labor Code, Art. 1702, Civil Code)
◦ IF THERE IS DOUBT as to the meaning of the legal and
contractual provision, the above-mentioned applies.
◦ IF THE PROVISION IS CLEAR AND UNAMBIGUOUS, it must
be applied in accordance with its express terms.
(Meralco v. NLRC, GR No. 78763, July 12, 1989).
◦ The law also recognizes that management has rights
which are also entitled to respect and enforcement in the
interest of fair play (St. Luke's Medical Center Employee's
Assoc, v. NLRC, GR No. 162053, March 7, 2007).
 Comes from acknowledgement that capital
wields more power than labor;
 (Sanchez v. Harry Lyons Construction Inc., GR
No. L-2779, October 18, 1950).
 There is greater supply than demand for labor;
 Those who have less in life should have more in law;
and
 The need for employment by labor comes from vital,
and even desperate necessity (survival)
General Rule: The Code applies to all workers, whether agricultural
or non-agricultural, including employees in a government
corporation incorporated under the corporation code;

Exceptions:
1. Government employees;
2. Employees of government Corporations created by special or
original charter;
3. Foreign governments;
4. International Agencies, employees of intergovernmental or
international organizations;
5. Corporate officers/Intra-corporate disputes which fall under
PD 902-A and now fall under the jurisdiction of, the Regular
Courts pursuant to the Securities Regulation Code; and
6. Local water districts except where NLRC jurisdiction is invoked.
 Law recognizes management rights. The
employer has the right to
◦ Conduct business;
◦ Prescribe rules;
◦ Select and hire employees;
◦ Transfer or discharge employees;
◦ Discipline of employees, and
◦ Return of investment and expansion of business.
 (Rural Bank of Cantilan . v. Julve, GR No. 169750,
February 27, 2007).
◦ Under the doctrine of management prerogative, every
employer has the inherent right to regulate, according to
his own discretion and judgment, all aspects of
employment, including hiring, work" assignments, working
methods, the time, place and manner of work, work
supervision, transfer of employees, lay-off of workers, and
discipline, dismissal, and recall of employees
 (Mendoza v. Rural Bank of Lucban, GR No. 155421,
July 7, 2004).
◦ Management prerogatives, however, are subject to
limitations provided by
 law,
 contract or collective bargaining agreements and
 general principles of fair play and justice
1. Employer - Employee Relationship
 Employer and Employee, defined: Arts. 97 (a)
(b) (c), 167 (f), (g) (h), 212 (e), (f) – note
difference in Labor Standards and Labor
Relations
 Tests
◦ Sy v. Court of Appeals, 398 SCRA 30 (2003)
◦ Chavez v. NLRC, 448 SCRA 478 (2005)
◦ Legend Hotel (Manila) v. Realuyo, 677 SCRA 10 (2012)
◦ South East International Rattan, Inc. v. J.J. Coming,
G.R. No. 186621, 12 March 2014
1. Employer - Employee Relationship
 Evidence of Employee Status
◦ Bernard A. Tenazas, et al., v. R. Villegas Taxi
Transport, G.R. No. 192998, 2 April 2014
 Burden of Proving Employer-Employee
Relationship
◦ Bitoy Javier v. Fly Ace Corporation, 666 SCRA 382
 Piercing the Veil of Corporate Entity
◦ Pamplona Plantation Co., Inc. v. Tinghil, 450
SCRA 421 (2005)
◦ Sarona v. NLRC, et al., 663 SCRA 394 (2012)
2. Independent Contractor and Labor-only
Contractor
 References: Art. 106-107, 109; DO No. 3,
May 2001; DO No. 14, 18 December 2001 (Re:
Employment of Security Guards), Sec. 8; DO No.
18-02, S 2002; DO No. 18-A, Series of 2011
 Requirements for Independent Contractor;
Trilateral Relationship, DO No. 18-A, Sec. 3(m),
Sec 5
◦ Sonza v. ABS-CBN Broadcasting Corp., 431 SCRA 381
(2004)
◦ San Miguel Corp. v. Semillano, 623 SCRA 114 (2010)
2. Independent Contractor and Labor-only
Contractor
 Labor Contractor Only; Requisites and Prohibition
◦ Polyfoam-RGC International Corp. v. Edgardo Concepcion,
672 SCRA 148 (2012)
◦ Norkis Trading Corp. v. Buenavista, et al., 643 SCRA 406
(2012)
 Solidary Liability of Indirect Employer/Direct
Employer, DO No. 18-A-11, Sec. 27
◦ Eparwa Security and Janitorial Services, Inc. v. Liceo de
Cagayan University, 508 SCRA 370 (2007)
◦ Benigno M. Vigilla, et al. v. Philippine College of
Criminology, Inc. and/or Gregory Alan F. Bautista, 698
SCRA 247 (2013)
Scope & Description
Labor Code Content
Pre-Employment Regulations on Overseas
Employment
The POEA
Recruitment and Placement of
Workers outside the Phils.
Employment of Non-resident
aliens
Human Resource Development The Government’s National
Manpower Development Plan
Training of special workers
Labor Code Content
Conditions of Employment Working periods and rest periods
Wages and manner of payment
Working conditions for special
groups of employees
Health, Safety and Social Welfare Occupational Safety and Health
Benefits Medical and Dental Care
Assistance through State Insurance
State Policies
Local Recruitment
Overseas Employment
Government Regulations on
Recruitment
 Article 12, Labor Code
◦ Promote and maintain a state of full employment
through improved manpower training, allocation
and utilization;
◦ Protect every citizen by securing for him the best
possible terms and condition of employment;
◦ Facilitate a free choice of available employment by
persons seeking work in conformity with the
national interest;
◦ Facilitate and regulate the movement of workers in
conformity with the national interest;
 Article 12, Labor Code
◦ Regulate the employment of aliens, including the
establishment of a registration and/or permit
system;
◦ Strengthen the network of public employment
offices and rationalize the participation of the
private sector in the recruitment and placement of
workers, locally and overseas to serve national
development objectives; and
◦ Insure careful selection of Filipino workers for
overseas employment in order to protect the good
name of the Philippines abroad.
 For local employment:
◦ Article 13(b) of the Labor Code, defines
“recruitment and placement” as “… any act of
canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers, and includes
referrals, contract services, promising or
advertising for employment, locally or abroad,
whether for profit or not; Provided, That any person
or entity which, in any manner, offers or promises
for a fee employment to two or more persons shall
be deemed engaged in recruitment and placement.”
 For overseas employment: Art. 35; RA 8042,
Secs. 6, 7 &10, as amended by RA 10022
 Reference: Arts. 16, 25, 18, 12 (f); 2002 POEA Rules and
Regulations, Part I, Rule II, Sec. 1
 Public employment offices;
 POEA;
 Private recruitment entities;
 Private (fee-charging) employment agencies;
 Shipping or manning agents or representatives;
 Construction contractors if authorized by the DOLE and
the Construction Industry Authority of the Philippines
 Members of the diplomatic- corps (through POEA);
 Other persons or entities authorized by the SOLE; and
 Name hirees.

Direct Hiring for overseas employment is not allowed (Article

18, LC)
 References: Arts. 16, 18, 25, 26; 2002 POEA
Rules and Regulations, Part I, Rule II, Sec. 2
 Case Review: Hornales v. NLRC, 364 SCRA
778 (2001)
◦ See how NLRC misappreciated JEAC’s business
(travel agency vs. recruitment agency)
 Overseas Filipino Worker –a person who is to be
engaged, is engaged or has been engaged in a
remunerated activity in a state of which he or she
is not a citizen or on board a vessel navigating
the foreign seas other than a government ship
used for military or non-commercial purposes or
on an installation located offshore or on the high
seas, to be used interchangeably with migrant
worker. (RA 8042 as amended by RA 10022)
 Seaman - any person employed in a vessel
engaged in maritime navigation.
 Overseas Employment - employment of a worker
outside the Philippines covered by a valid
contract. (POEA Rules and Regulations Governing
the Recruitment and Employment of Land Based
Overseas Workers, Feb. 4, 2002).
◦ Note: A person to be engaged in a remunerated activity
refers to an applicant worker who has been promised or
assured of employment overseas and acting on such
promise or assurance sustains damage and/or injury.
 Emigrant – any person, worker or otherwise, who
emigrates to a foreign country by virtue of an
immigrant visa or resident permit or its
equivalent in the country of destination.
 Philippine Overseas Employment
Administration assumes functions of OEDB &
NSB
 Principal Functions:
◦ Formulation, implementation, and monitoring of
overseas employment of Filipino workers;
◦ Protection of worker rights to fair and equitable
employment practices
◦ Deployment of Filipino workers through
government-to-government hiring.
 Salient Regulatory Functions
◦ Regulate private sector participation in the
recruitment and overseas placement of workers;
◦ Formulate and implement a system for promoting
and monitoring the overseas employment of
Filipino workers, considering worker welfare and
the domestic manpower requirements;
◦ Inform migrant workers of their rights as workers
and also as human beings;
 Salient Regulatory Functions
◦ Instruct and guide the workers how to assert their
rights and provide the available mechanism to
redress violation of their rights;
◦ Service the requirements for trained and competent
Filipino workers of foreign governments and their
instrumentalities, and such other employers as
public interest may require;
 Deployment of workers shall be sanctioned
by the POEA only -
◦ Where the Philippines has concluded Bilateral labor
agreements or arrangements;
◦ When an accommodating state observes and/or
complies with the international laws and standards
for migrant workers;
◦ Where there is a guarantee from the
accommodating state to protect the rights of
Filipino migrant workers.
 Adjudicatory Functions
◦ Administrative cases involving violations of licensing
rules and regulations and registration of recruitment
and employment agencies or entities;
◦ POEA has the power to:
 Suspend or cancel license; and
 Order the refund or reimbursement of such illegally
collected fees (Eastern Assurance and Surety Corp. v. Sec.
of Labor, GR Nos. 79436-50, January 17, 1990)
◦ Disciplinary action cases and other special cases
which are administrative in character, involving
employers, principals, contracting partners and
Filipino migrant workers.
 Mandatory Remittance (Article 22)
 Exceptions
◦ Filipino servicemen working in U.S. military
Installations;
◦ Where the worker's immediate family members,
dependents, or beneficiaries are residing with him
abroad; and
◦ Immigrants and
◦ Filipino professionals and employees working with
United Nations agencies or specialized bodies
(Resolution No. 1-83, Inter-Agency Committee for
Implementation of E.G. 857).
 Worker shall be suspended or excluded from the
list of eligible workers for overseas employment.
Subsequent violations shall warrant his
repatriation.
 Employers who fail to comply shall be excluded
from the overseas employment program.
 Private employment agencies or entities shall
face cancellation or revocation of their licenses or
authority to recruit, without prejudice to other
liabilities under existing laws and regulations
 Licensing:
◦ Qualifications, Arts. 27, 28; 2002 POEA
Rules and Regulations, Part II, Rule I, Sec.
1 (a) (b)
◦ Issuance of License, Arts. 29, 30, 31; 2002
POEA Rules and Regulations, Part II, Rule
II, Secs. 4, 5, 6, 7, 8, 9
 Art. 27, LC: Filipino citizens, or Corporations,
partnerships or entities at least 75% of the
authorized and voting capital stock of which
is owned and controlled by Filipino citizens.
 Art. 28, LC:
◦ Private employment agency for local employment
 For single proprietorship or partnership –minimum net
worth of two (2) hundred thousand pesos.
 For corporations – a minimum paid up capital of five
(5) hundred thousand pesos.
 Art. 28, LC:
◦ Private recruitment or manning agency for overseas
employment
 For single proprietorship or partnership – minimum
capitalization of two (2) million pesos.
 For corporations –minimum paid up capital of two (2) million
pesos;
 increase capitalization or paid-up capital to two (2) million
pesos at the rate of two hundred fifty thousand pesos
(P250,000) every year.
 Those not otherwise disqualified by law or other
government regulations to engage in the
recruitment and placement of workers for
overseas employment.
 Officials or employees of the DOLE or other
government agencies directly involved in
overseas employment program and their
relatives within the 4th degree of
consanguinity or affinity;
 Travel agencies and sales agencies of airline
companies (Art. 26, LC).
 Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
 Corporations and partnerships, when any of
its officers, members of the board, or
partners, is also an officer, member of the
board, or partner of a corporation or
partnership engaged in the business of a
travel agency (interlocking officers);
 Persons, partnerships or corporations which
have derogatory records
 Those whose Licenses have been previously
cancelled or revoked (Sec. 2, Rule I, 2002
Rules and Regulations on the Recruitment
and Employment of Land-Based Workers).
 Used only by the person or entity in whose
favor it was issued;
 Used only in the Place stated in the license.
 Recruitment and placement must be
undertaken at their authorized official
addresses.
 Provincial recruitment and/or job fairs may be
allowed only when authorized by POEA in
writing.

- ART. 29, Labor Code.

 All applicants for license or authority shall
post such cash and surety bonds as
determined by the Secretary of Labor,
including escrow deposits.
- ART. 31: BONDS
 Purpose of Bond:
◦ To guarantee compliance with prescribed
recruitment procedures, rules and regulations,
and terms and conditions of employment;
 The surety bond required of recruitment agencies is intended
for the protection of our citizens who are engaged for
overseas employment by foreign companies. The purpose is
to insure that if the rights of these overseas workers are
violated by their employers, recourse would still be available
to them against the local companies that recruited them for
the foreign principal. The foreign principal is outside the
jurisdiction of our courts and would probably have no
properties in this country against which an adverse judgment
can be enforced. This difficulty is corrected by the bond,
which can be proceeded against to satisfy that judgment.
(STRONGHOLD INSURANCE COMPANY, INC. vs. CA and
ADRIANO URTESUELA, G.R. No. 88050, January 30, 1992)
 Exemption from Garnishment
◦ Cash bond filed by applicants for license or authority is
not subject to garnishment by a judgment creditor of the
agency.
◦ Should the bond/deposit in escrow or any part thereof
be garnished, the same should be replenished by the
agency within 15 days from notice from the POEA.
Failure to replenish the same within the said period shall
cause the suspension of the license (Sec. 22, Rule II,
Book II, Rules and Regulations on the Recruitment and
Employment of Land-based Workers).
 POEA has the power to enforce liability under
cash or surety bonds.
 The recruitment agency is SOLIDARILY LIABLE with the
foreign principal for unpaid salaries of a worker it
recruited. Before recruiting, the agency is required to
submit a document containing its power to sue and be
sued jointly and solidarily with the principal or foreign-
based employer for any of the violations of the recruitment
agreement, and the contracts of employment (Sec. 10,
Rule V, Book I, Implementing Regulations of LC).

 The recruitment agency may still be sued even if agency

agreement between recruitment agency and principal is
already severed if no notice of the termination was given
to the employee based on Art. 1921 of the New Civil Code
(Catan v. NLRC, GR No. 77297, April 15, 1988).
 Exemption: Where the workers themselves
insisted for the recruitment agency to send them
back to their foreign employer despite their
knowledge of its inability to pay their wages, the
Court absolved the agency from liability (Feagle
Construction Corp. v. Gayda, GR No. 82310, June
18, 1990).

 Contract by Principal: Even if it was the principal

of the manning agency who entered into contract
with the employee, the manning agent in the
Philippines is jointly and solidarily liable with the
principal (Seagull Maritime Corp. v. Balatongan,
GR Nos. 83635-53, February 28, 1989).
 Sagun v. Sunace International Management
Services, Inc., 644 SCRA 1717 (2011)
 ART. 32, LC
◦ Charging of fees only after employment obtained or
actual commencement of employment.
◦ All fees paid shall be covered with appropriate receipt.
 POEA’s authority in case of illegally collected
fees:
◦ Suspend or cancel license; and
◦ Order the refund or reimbursement of such illegally
collected fees (Eastern Assurance and Surety Corp. v.
Sec. of Labor, GR Nos. 79436-50, January 17, 1990).
 Reports/Employment Information, Arts. 33, 14
(d)
 Placement fees cannot be collected from a hired
worker until he has signed the employment
contract and shall be covered by receipts clearly
showing the amount paid (Sec. 2[a], Rule V, Book
II, Rules and Regulations Governing Overseas
Employment).
 Manning agencies shall not charge any fee from
seafarer-applicants for its recruitment and
placement services.
 No other fees or charges including processing
fees shall be imposed against any worker.
 ◦ Enforcement
◦ Regulatory Power, Art. 36
◦ Rule-Making Power, Art. 36
◦ Visitorial Power, Art. 37
 POEA Standard Employment Contract
◦ Wallen Maritime Services, Inc. v. Ernesto C. Tanawan, 679
SCRA 255 (2012)
◦ Liberal Construction (consistent with Art. 4, LC)
◦ Terms and Conditions
◦ Abante v. KJGS Fleet Management, Manila, 67 SCRA 734
(2009)
 Joint and Several Liability of Agent and Principal,
POEA Rules, Part II, Rule II, Sec. 1 (f); RA 8042, Sec.
10, 2nd, 3rd, 4th, 5th pars. as amended
 Suspension or Cancellation
◦ Prohibited acts (Art. 34);
◦ Charging a fee before the worker is employed or
in excess of the authorized amount;
◦ Recruitment activities in places outside the
authorized area;
◦ Deploying workers without processing through
the POEA; and
◦ Advertisements (job announcements) without
POEA's prior approval (Sec.4, Rule II, Book IV,
POEA Rules).
 Grounds for Revocation of License
◦ Accumulated three counts of suspension by an
agency based on final and executory orders within
the validity period of its license;
◦ Violation of the conditions of license;
◦ Engaging in acts of misrepresentation for the
purpose of securing a license or renewal thereof;
and
◦ Engaging in the recruitment or placement of
workers to jobs harmful to the public health or
morality or to the dignity of the Republic of the
Philippines (Sec.3, Rule I, Book VI, Rules and
Regulations Governing Overseas Employment).
 Illegal Recruitment, Arts. 34, 38; RA 8042, Sec.
6 & 7 as amended, 8, 9, 10 as amended, 11, 12
◦ Hon. Patricia A. Sto. Tomas v. Rey Salac, et al., 685
Phil. 245 (2012)
 Prohibited Practices
◦ Stolt-Nielsen Transportation Group, Inc. & Chung Gai
Ship Mgmt. v. Sulpecio Medequillo, Jr., 663 SCRA 291
(2012)
◦ People v. Espenilla, 667 SCRA 388 (2012)
◦ People v. Bernadette Pansacala, 672 SCRA 549 (2012)
 Undertaken by non-licensees, non-holders
◦ Note: Salazar v. Achacoso, 183 SCRA 145 (1990) –
Art. 38 (c) was declared unconstitutional; only a judge
may issue warrants of search and arrest.
 Any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers
and includes referring, contract services, promising
or advertising for employment abroad, whether for
profit or not, when undertaken by a non-licensee or
non-holder of authority contemplated under Article
13(f) of Presidential Decree No. 442, as amended,
otherwise known as the Labor Code of the
Philippines. Provided, that any such non-licensee or
non-holder who, in any manner, offers or promises
for a fee employment abroad to two or more persons
shall be deemed so engaged.
 Includes prohibited acts under Article 34, LC, whether
committed by any person, whether a non-licensee,
nonholder, licensee or holder of authority.
Other Acts of Illegal Recruitment
 Failure to actually deploy without valid reason as
determined by DOLE;
 Failure to reimburse expenses incurred by the
worker in connection with his documentation and
processing for purposes of deployment, in cases
where the deployment does not actually take
place without the worker's fault; and
 Recruitment and placement activities of agents or
representatives appointed by a licensee, whose
appointments were not previously authorized by
the POEA.
1. The offender is a licensee/non-licensee or
holder/non-holder of authority engaged in
the recruitment and placement of workers;
and
2. The offender undertakes either any
recruitment activities defined under Article
13 (b), or any prohibited practices
enumerated under Art. 34 (People v.
Sadiosa, GR No. 107084, May 15, 1998; Sec.
10, R.A. 8042).
 Qualifying Circumstances
◦ When illegal recruitment is committed by a SYNDICATE, i.e.,
if it is carried out by three (3) or more persons conspiring
and/or confederating with one another; or
◦ When illegal recruitment is committed in a LARGE SCALE,
i.e., if it is committed against three (3) or more persons
individually or as a group.

 Persons convicted will suffer the following sanctions

◦ Automatic revocation of the license or authority (Art. 39[e],
LC);
◦ Forfeiture of the cash and surety bonds (Art. 39[e], LC); and
◦ Conviction of the crime of estafa, if found guilty thereof
(People v. Calonzo, GR Nos. 115150-55, September 27,
1996).
  Because of distinctions as to:
◦ Prescriptive Period
◦ Penalties

Simple Economic Sabotage

Prescriptive Period 5 Years 20 Years

Imprisonment Reclusion Temporal Life imprisonment

Fine Up to P2,000,000 Up to P5,000,000

 RTC Br. 60, Baguio City
 three elements of illegal recruitment in large
scale
◦ a) the offender has no valid license or authority required
by law to enable him to lawfully engage in recruitment
and placement of workers;
◦ b) the offender undertakes any of the activities within
the meaning of “recruitment and placement” under
Article 13(b) of the Labor Code, or any of the prohibited
practices enumerated under Article 34 of the said Code
(now Section 6 of Republic Act No. 8042); and
◦ c) the offender committed the same against three or
more persons, individually or as a group, are present in
this case.
 The two elements of estafa –
◦ that the accused defrauded another by abuse of
confidence or by means of deceit, and
◦ that damage or prejudice capable of pecuniary
estimation is caused to the offended party or third
person. The prosecution evidence duly proved that
due to the appellant’s false representations of
overseas jobs, the complainants paid placement
fees to the appellant who failed to secure the
promised overseas jobs.
1. Charge greater amount than that specified in the
schedule of allowable fees;
2. Furnish any false information in relation to
recruitment or employment;
3. Give any false notice, testimony etc. or commit any
act of misrepresentation to secure a license or
authority;
4. Induce or attempt to induce a worker to quit his job
in lieu of another offer unless it is designed to
liberate the worker from oppressive terms of
employment;
5. Influence or attempt to influence any person or
entity not to employ any worker who has not
applied for employment through his agency;
6. Engage in recruitment or placement of jobs harmful to
public health, morality or to the dignity of the Philippines;
7. Obstruct or attempt to obstruct inspection by the Labor
Secretary or his authorized representatives;
8. Fail to file reports, on the status of employment, placement
etc. and such other matters as may be required by the
SOLE;
9. Substitute or alter employment contracts without the
approval of the Secretary of Labor;
10. Become an officer or member of the Board of any
corporation engaged in the management of a travel agency;
11. Withhold travel documents from applicant workers before
departure for unauthorized monetary considerations.
RTC over Criminal Action arising from Illegal
Recruitment, RA No. 8042, Sec. 9
LA over Money Claims, RA 8042, Sec. 10, as
amended
◦ Flourish Maritime Shipping v. Almanzor, 568
SCRA 713 (2008)
◦ Poseidon International Maritime Services, Inc. v.
Tito R. Tamala, Felipe S. Saurin, Jr., Artemio A.
Bo-oc and Joel S. Fernandez, 700 SCRA 1(2013)
◦ Serrano v. Gallant Maritime Services, Inc., 582 SCRA
254 (2009)
◦ Pert/CPM Manpower Exponent Co., Inc. v. Vinuya, et
al., 680 SCRA 284 (2012)
POEA over Administrative Cases
 a) Pre-employment Cases, Omnibus Rules
Implementing RA No. 8042, Sec. 28 (a)
 b) Disciplinary Cases, Sec. 28 (b)
◦ Eastern Mediterranean Maritime Ltd. & Agemar Manning
Agency, Inc. v. Estanislao Surio, et al., 679 SCRA 305 (2012)
 Public Sector Agencies – Employment Offices, Art. 12 (f); 14
(a); E.O. 247, Sec. 3 (Reorganizing POEA); POEA Rules and
Regulations
Sanctions
 Local Employment, Art. 39
 Overseas Employment, Art. 35; RA 8042, Secs. 6, 7
&10 as amended
AEP
Requirements
Grounds for suspension,
cancellation
 References: Arts. 12 (e), 40-42; Omnibus
Rules, Book I, Rule XIV; DO No. 97-09, S. 2009;
DO No. 120-12, S. 2012; Const., Art. XII, Sec.
12
 Cases:
◦ Almodiel v. NLRC, 223 SCRA 341 (1993) -
Coverage; Exemption, Art. 40; D.O. No. 97-09,
Secs. 1, 2
◦ General Milling Corp. v. Torres, 196 SCRA 215
(1991)
◦ Pacific Consultants International Asia, Inc. v.
Schonfeld, 516 SCRA 209 (2007)
 An Alien
Employment Permit
is a document
issued by the
Department of
Labor and
Employment which
authorizes a
foreign national to
work in the
Philippines.
◦ Permit required for entry of aliens into the country for
employment purposes, subject to Non-availability of
any person in the Philippines who is competent, able
and willing at the time of the application to perform
the services for which the alien is desired, including:
 All foreign nationals seeking admission to the
Philippines for the purpose of employment
 All NON-RESIDENT foreign nationals already working
in the Philippines. Immigrants and resident aliens
are not required to secure a working permit.
Instead, they need to secure an Alien Employment
Registration Certificate (AERC)
 Non-resident foreign nationals admitted to the
Philippines on non-working visas and who wish to
seek employment, and
 Missionaries of religious workers who intend to
engage in gainful employment
 Foreign professionals who are allowed to practice
their profession in the Philippines under reciprocity
and other international agreements and in
consultancy services pursuant to Section 7(j) of the
PRC Modernization Act of 2000.
 Holders of Special Investors Resident Visa (SIRV),
Special Retirees Resident Visa (SRRV), Treaty Traders
Visa (9d) or Special Non-Immigrant Visa (47(a)2) for
as long as they occupy any executive, advisory,
supervisory, or technical position in any
establishment.
◦ Basis for issuance
 Compliance by the applicant or employer or the
foreign national with the substantive and
documentary requirements.
 Determination of the DOLE Secretary that there
is no available Filipino national who is
competent, able and willing to do the job for
the employer.
 Assessment of the DOLE Secretary that the
employment of the foreign national will
redound to national benefit.
 All members of diplomatic service and foreign
government officials accredited by and with
reciprocity arrangement with the Philippine
government;
 Officers and staff of international organizations
of which the Philippines is a cooperating
member, and their legitimate spouses desiring
to work in the Philippines;
 Foreign nationals elected as members of the
Governing Board who do not occupy any other
position, but have only voting rights in the
corporation;
 All foreign nationals granted exemption by law;
 Foreign nationals who come to the Philippines
to teach, present and/or conduct Foreign
nationals who come to the Philippines to teach,
present and/or conduct research studies in
universities and colleges as visiting, exchange
or adjunct professors under formal agreements
between the universities or colleges in the
Philippines and foreign universities or colleges;
or between the Philippine government and
foreign government; provided that the
exemption is on a reciprocal basis;
 Owners and representatives of foreign nationals
whose companies are accredited by the POEA
who come to the Philippines for a limited period
and solely for the purpose of interviewing
Filipino applicants for employment abroad;
 Resident foreign nationals and temporary or
probationary resident visa holders employed or
seeking employment in the Philippines.
◦ One year or
◦ Co-terminus with the duration of employment,
consultancy services or other modes of
employment or term of office, which in no case
shall exceed five years. Said AEP is valid for the
position/s and company for which it was issued.
◦ In case of assignment in the company’s
subsidiaries, branch offices and joint ventures
and those assigned in the headquarters with
oversight function in any of the branch offices,
operation or projects in the country, one AEP
shall be required and valid for all the said
assignments irrespective of their place/s.
 Misrepresentation of facts in the
application;
 Submission of falsified documents;
 Derogatory record of foreign national;
 Availability of a Filipino who is competent,
able and willing to do the job intended for
the foreign national.
 The continued stay of the foreign national
may result in damage to the interest of the
industry or the country;
 The employment of the foreign national is
suspended by the employer or by order of
the Court.
◦ Non-compliance with any of the requirements or
conditions for which the AEP was issued;
◦ Misrepresentation of facts in the application;
◦ Submission of falsified or tampered documents;
◦ Meritorious objection or information against the
employment of the foreign national as
determined by the Regional Director;
◦ Foreign national has a derogatory record; or
◦ Employer terminated the employment of the
foreign national.
 Appeal maybe filed by any aggrieved party
with the Secretary of Labor and Employment
within 10 days after receipt of the Order of
denial/cancellation or revocation.
 If a foreign national is found to have
worked without or with expired AEP prior to
application, a penalty of Ten Thousand
Pesos (P10,000.00) shall be imposed for
working without an AEP for one (1) year or
fraction thereof.
The TESDA
Training and Development of
Special Workers
 Read Articles 43-56, Labor Code
 The Technical Education and Skills Development
Authority (TESDA) was created under R.A 7796
and replaced the NMYC.
 Statement of Goals and Objectives
a. To attain international competitiveness;
b. To meet demands for quality middle-level manpower;
c. To disseminate scientific and technical knowledge base;
d. To recognize and encourage the complementary roles of
public and private institutions; and
e. To inculcate desirable values.
 refers to those:
◦ Who have acquired practical skills and knowledge
through formal or non-formal education and
training equivalent to at least a secondary
education but preferably a post-secondary
education with a corresponding degree or diploma;
◦ Skilled workers who have become highly competent
in their trade or craft as attested by industry.
 Types of Special Workers
◦ Apprentice
◦ Learner
◦ Handicapped

 Objectives for Training and Employment

◦ To help meet the demand of the economy for
trained manpower;
◦ To establish a national apprenticeship
program; and
◦ To establish apprenticeship standards for the
protection of apprentices.
 Apprenticeship - practical training on the job
supplemented by related theoretical instruction, for
a highly skilled or technical occupation for a period
of not less than three months but not more than
six months.
 Apprentice - a worker who is covered by a written
apprenticeship agreement with an individual
employer or any of the entities recognized under
this chapter, with an apprenticeship program duly
approved by the DOLE.
 Apprenticeable Occupation - any trade, form of
employment or occupation which requires more
than 3 months of practical training on the job
supplemented by related theoretical instruction.
 Apprenticeship Agreement – an employment
contract wherein the employer binds himself to
train the apprentice and the apprentice in turn
accepts the terms of training.
 On-the-job-training – practical work experience
through actual participation in productive
activities given to or acquired by an apprentice.
 Highly Technical Industries – a trade, business,
enterprise, industry or other activity which is
engaged in the application of advanced
technology.
 At least 15 years of age (as amended by Sec.
12, RA 7610), provided that if below 18
years, he shall not be eligible for hazardous
occupations.
 Physically fit for the occupation in which he
desires to be trained;
 Possess vocational aptitude and capacity for
the particular occupation as established
through appropriate tests; and
 Possess the ability to comprehend and follow
oral and written instructions.
 Total physical fitness is not required of an
apprentice-applicant unless it is essential to
the expeditious and effective learning of the
occupation. Only physical defects which
constitute real impediments to effective
performance as determined by the plant
apprenticeship^ committee may disqualify an
applicant. (Sec 13, Rule VI, Book II, Rules
implementing the Labor Code)

 Employer may employ apprentices when
◦ They are classified as highly technical industries;
and
◦ The task to be performed is an apprenticeable
occupation as determined by the Secretary of Labor.
 Qualified under Article 59;
 Apprentice earns not less than 75% of the prescribed
minimum salary; (Sec 13, Rule VI, Book II, Rules
Implementing the Labor Code)
 Apprenticeship agreement duly executed and signed;
 Apprenticeship program must be approved by the
Secretary of Labor; otherwise, the apprentice shall be
deemed a regular employee (Century Canning vs. CA
& Gloria Palad GR No. 2007, citing Nitto Enterprises v.
NLRC, GR No. 114337, September 29, 1995); and
 Period of apprenticeship shall not exceed six (6)
months (Sec. 19, Rule VI, Book II, Rules Implementing
the Labor Code).
 Content
◦ Full name and address of the contracting parties;
◦ Date of birth of the apprentice;
◦ Name of trade, occupation or job in which the
apprentice shall be trained and the dates on which
such training will begin and will proximately end;
◦ Approximate number of hours of on-the-job
training with compulsory theoretical instructions
which the apprentice shall undergo during his
training;
 Content
◦ Schedule of the work processes of the trade/
occupation in which the apprentice shall be trained &
the approximate time to be spent on the job in each
process;
◦ Graduated scale of wages to be paid to the apprentice;
◦ Probationary period of the apprentice during which
either party may summarily terminate their agreement;
and
◦ An Apprenticeship Transfer Clause (Sec. 18, Rule VI,
Book II, Rules Implementing the Labor Code).
 Within the sponsoring firm, establishment or
entity; OR
 Within a DOLE training center or other public
training institutions; OR
 Initial training in trade fundamentals in a
training center or other institutions with
subsequent actual work participation within
the sponsoring firm or entity during the final
stage of training.
 Investigation of Violation of Apprenticeship
Agreement (Art. 65)
◦ Either party to an agreement may terminate the
same after the probationary period only for a
valid cause.
◦ Action may be initiated upon complaint of any
interested person or upon DOLE'S own initiative.
 By the employer
◦ Habitual absenteeism in on-the-job training and
related theoretical instructions;
◦ Willful disobedience of company rules or
insubordination to lawful order of a superior:
◦ Poor physical condition, permanent disability or
prolonged illness which incapacitates the apprentice
from working;
◦ Theft or malicious destruction of company property
and/or equipment;
◦ Poor efficiency or performance on the job or in the
classroom for a prolonged period despite warnings
duly given to the apprentice; and
◦ Engaging in violence or other forms of gross
misconduct inside the employer's premises.
 By the apprentice
◦ Substandard or deleterious working conditions
within the employer's premises:
◦ Repeated violations by the employer of the terms
of the apprenticeship agreement;
◦ Cruel or inhumane treatment by the employer or
his subordinates;
◦ Personal problems which in the opinion of the
apprentice shall prevent him from a satisfactory
performance of his job; and
◦ Bad health or continuing illness. (Sec 25, Rule VI,
Book II, Rules Implementing the Labor Code)
 Appeal (Art. 66)
◦ The decision of an authorized agency of the
Department of Labor may be appealed to the
Secretary of Labor, within 5 days from receipt of the
adverse decision.
◦ The decision of the Secretary of Labor shall be final
and executory.
 Exhaustion of Administrative Remedies (Art.
67)
◦ The exhaustion of administrative remedies is a
condition precedent to the institution of action.
◦ The plant apprenticeship committee shall have initial
responsibility for settling differences arising out of
apprenticeship agreements (Sec. 32b, Rule VI, Book II,
Rules Implementing the Labor Code).
 ART. 70: The organization of apprenticeship program shall
be primarily a voluntary undertaking of employers, except as
provided for in Article 72.
 Exceptions: (Art. 72)
 When grave national emergencies, particularly those involving
the security of the state, arise or particular requirements of
economic development so demand, the Secretary of Labor
and Employment may recommend to the President of the
Philippines the compulsory training of apprentices required in
certain trades, occupations, jobs, or employment levels where
shortage of trained manpower is deemed critical.
 Where services of foreign technicians are utilized by private
companies in apprenticeable trades said companies are
required to set up appropriate apprenticeship programs. (Sec.
41, Rule VI, Book II, Rules Implementing the Labor Code)
 An additional deduction from taxable income
of 1/2 of the value of labor training expenses
incurred for developing the productivity and
efficiency of apprentices are granted to the
person or enterprise organizing an
apprenticeship program, provided
◦ Apprenticeship program must be duly recognized by
the Department of Labor;
◦ Deduction shall not exceed 10% of direct labor wage,
and
◦ Employer must pay his apprentices the minimum
wage.
 Required by the school;
 Required by the training program
Curriculum;
 A requisite for graduation; or
 A requisite for board examination. (Sec. 40,
Rule VI, Book II, Rules Implementing the
Labor Code)
 Rules on Working Scholar
 There is NO employer-employee relationship where
there is agreement between them
 The agreement shows that the student/scholar agrees
to work for the college/university in exchange for the
privilege to study free of charge,
 provided the students are given real opportunities,
including such facilities as may be reasonable and
necessary to finish their chosen courses under such
agreement
 The student/scholar is not considered an employee. But
if he causes injury or damage to a third person, the
school may be held liable under Art. 2180 of the Civil
Code (Filamer Christian Institute v. IAC, GR No. 75112,
August 17, 1992).
 Atlanta Industries, Inc. and/or Robert Chan vs. Aprilito R.
Sebolino, et al., G.R. No. 187320, Jan. 2011. The
apprenticeship agreements did not indicate the trade or
occupation in which the apprentice would be trained; neither
was the apprenticeship program approved by the Technical
Education and Skills Development Authority (TESDA). These
were defective as they were executed in violation of the law
and the rules. Moreover, with the expiration of the first
agreement and the retention of the employees, the employer,
to all intents and purposes, recognized the completion of
their training and their acquisition of a regular employee
status. To foist upon them the second apprenticeship
agreement for a second skill which was not even mentioned
in the agreement itself, is a violation of the Labor Code’s
implementing rules and is an act manifestly unfair to the
employees.
 Learners - persons hired as trainees in semi-
skilled and other industrial occupations which
are non-apprenticeable and which may be
learned through practical training on the job
in a relatively short period of time which shall
not exceed 3 months.
 Learnership Agreement - employment and
training contract entered into between the
employer and the learner.
 No requirement for theoretical instruction
 No experienced workers are available;
 The employment of learners being necessary to
prevent curtailment of employment
opportunities; and
 The employment will neither create unfair
competition in terms of labor costs nor impair
working standards.
 Employment of minors as learners
 A minor below fifteen (15) years of age shall not
be eligible for employment as a learner. Those
below eighteen (18) years of age may only be
employed in non-hazardous occupations.
 It shall include:
◦ The names and addresses of the employer and the
learner;
◦ The occupation to be learned and the duration of the
training period which shall not exceed three (3) months;
◦ The wage of learner which shall be at least 75% of the
applicable minimum wage; and
◦ A commitment to employ the learner, if he so desires, as
a regular employee upon completion of training.
 A learner who has worked during the first two
months shall be deemed a regular employee if
training is terminated by the employer before the
end of the stipulated period through no fault of
the learner
 Apprenticeship Learnership
Duration
Not less than 3 months practical training on the job
Practical training on the job not to exceed 3 months
but not more than 6 months
Concept

Hiring of persons as trainees in semi-skilled and other

Practical training on the job supplemented by related industrial occupations which are non-apprenticeable
theoretical instruction and which may be learned through practical training
on the job in a relatively short period of time

ER’s Commitment to Hire

With a commitment to employ the learner as regular

No commitment to hire
employee if he desires upon completion of learnership

Effect of Pretermination

Learner is considered regular employee after 2 months

Worker is not considered an employee
of training and dismissal is without fault of learner

Focus of Training
Highly-skilled or technical industries and in industrial Semi-skilled/industrial occupation (non-
occupation apprentriceable)
Approval
Requires DOLE approval for validity Not required
Exhaustion of Administrative in case of Breach of Contract
Precondition for filing action Not required
 References: ILO Convention 159 (1983);
Arts. 78-81; RA 7277, as amended by RA
9442, and further amended by RA 10070, 6
April 2010
a. Disabled Persons are those suffering from restriction of
different abilities, as a result of a mental, physical or
sensory impairment, to perform an activity in the manner or
within the range considered normal for a human being;
b. Impairment is any loss, diminution or aberration of
psychological, physiological, or anatomical structure of
function;
c. Disability shall mean
1. a physical or mental impairment that substantially limits one or
more psychological, physiological or anatomical function of an
individual or activities of such individual;
2. a record of such an impairment; or
3. being regarded as having such an impairment;
d. Handicap refers to a disadvantage for a given individual
resulting from an impairment or a disability, that limits or
prevents the functions or activity, that is considered normal
given the age and sex of the individual;
 Policy Declaration, RA 7277, Sec. 2
 Coverage, RA 7277, Sec. 3
 Rights and Privileges, RA 7277, Secs. 5, 6, 7
 Bernardo v. NLRC & FEBTC, 310 SCRA 186
(1999)
 e. Discrimination, RA 7277, Secs. 32, 33
 f. Enforcement, Secs. 44, 45, 46
Hours of Work
Holidays and Special Days
Overtime
Premium Pay
Thirteenth Month Pay
Service Incentive Leave
 Regulation; Rationale
◦ Manila Terminal Co. Inc. v. CIR, 91 Phil. 625
(1952)
Conditions of employment are designed to
safeguard the health and welfare of the
laborer, and to minimize unemployment by
forcing employers to utilize different shifts of
laborers working only up to the maximum
number of working hours.
1. Government Employees; Exemption, Const., Art. IX-B, Sec. 2
(1); Rule 1, Sec. 2 (a)
2. Managerial Employees, Art. 82; Rule I, Sec. 2 (b), (c)
◦ Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 (2004)
◦ Charlito Peñaranda v. Baganga Plywood Corp., 489 SCRA 94 (2006)
3. Field Personnel, Art. 82; Rule I, Sec. 2 (f)
◦ Merdicar Fishing Corp. v. NLRC, 297 SCRA 440 (1998)
◦ Auto Bus Transport Systems, Inc. v. Bautista, 458 SCRA 578 (2005)
◦ Far East Agricultural Supply, Inc. v. Lebatique, 515 SCRA 491 (2007)
4. Dependent Family Members
5. Domestic Workers; Exemption on Assignment, Arts. 82, 141,
145; Rule I, Sec. 2 (d); RA 10361 & IRR of RA 10361
6. Persons in the Personal Service of Another, Art. 82; Rule I, Sec.
2 (d)
7. Piece Workers, Rule I, Sec. 2 (e)
◦ Labor Congress v. NLRC, 290 SCRA 509 (1998)
 Normal hours of work - Eight hours per work
day
 Work day – 24 consecutive-hour period which
commences from the time the employee
regularly starts to work
 Work week – a week consisting of 168
consecutive hours or 7 consecutive work days
beginning at the same hour and on the same
calendar day each calendar week.
 Reduction of eight-hour working day is not
prohibited, provided there is no reduction in
workers’ pay
 Payment of wages of part-time workers
should be in proportion only to the hours
worked.
 Management has the prerogative, whenever
exigencies of the service so require, to
change the working hours of its employees.
 Workdays may be reduced on account of
losses where the losses sought to be
prevented are caused by factors outside of
the employer’s control.
◦ Allowed by the DOLE as it is more humane to keep
workers employed rather than cause the outright
termination of their services
 Department Advisory no. 22 s. 2004
 Department Advisory no. 2 s. 2009
 Six-day work week may be compressed to five
days
 Subject to conditions imposed by the DOLE:
◦ Employees voluntarily agree to work extended hours
◦ No diminution in take-home pay and fringe benefits
◦ Value of benefits that will accrue to the employees is
more than or at least commensurate with the overtime
pay that is due them
◦ Work does not involve strenuous physical exertion and
with rest periods
◦ Temporary arrangement only, as determined by DOLE
 Effect of reduction of workdays on wages and
allowances
◦ The employer may deduct the wages and living
allowances corresponding to the days taken off
from the work week, in the absence of an
agreement specifically providing that a reduction in
the number of workdays will not adversely affect
the remuneration of the employees.
 All time during which an employee is required
to be on duty or to be at the employer’s
premises or to be at a prescribed workplace,
and
 All time during which an employee is suffered
or permitted to work
 Coffee breaks and rest periods of short duration
 Waiting time, if waiting is integral part of
employee’s work, or he is engaged by employer
to wait
 Sleeping while on duty, if work allows sleeping
without interrupting or prejudicing work, or when
there is an express agreement between employer
and employee
 Employee is required to remain on call in the
employer’s premises that he cannot use the time
effectively and gainfully for his own purpose.
 Traveling
◦ From home to work – not compensable
◦ Traveling that is all in a day’s work – compensable
◦ Travel away from home – compensable
 Seminars, training, meetings, lectures
◦ Must be sanctioned by employer to be compensable
 CBA Negotiations or grievance meeting
 One hour time off for regular meals
◦ Not compensable, except if employee is required to
work while eating (even if employer pays for meal)
◦ If reduced to less than 20 minutes, considered as a
break; compensable
 Employee may do anything he wants, and
leave premises provided he returns on time
 NSD: 10% of employee’s regular wage for
each hour of work performed between 10:00
PM and 6:00 AM the next day.
 OT: Work rendered after normal eight hours
of work
 Distinctions: When the work of an employee
falls at night time, the receipt of overtime pay
shall not preclude the right to receive night
differential pay. NSD is for work done at
night, OT is for work done beyond normal
hours of work.
 Premium pay – additional compensation
required by law for work performed within 8
hours on non-working days such as rest days
and special days
 Overtime pay – additional compensation for
work performed beyond eight hours
 Regular wage or basic salary means cash
wage only without deduction for facilities
provided by employer
 OT on ordinary day: Plus 25% of Basic Hourly Rate
(BHR)
 OT on rest day or special day: Plus 30% of (BHR
during special holiday x1.3) (Article 93(a))
 OT on rest day and special day: Plus 30% of (BHR
during special holiday x1.5) (Article 93(c))
 OT on regular holiday: Plus 30% of (BHRx2)
(Article 94(b))
 OT on rest day and regular holiday: Plus 30 of
(BHR x 2.6)
 If an employee work for only 7 hours on any
given day (under time assuming his regular
working period is eight hours daily), he
cannot be compelled to make up for his time
deficiency by requiring him to render work
for an additional one hour on another day.
Article 87 of the Labor Code, reads:
 Article 87. Undertime not offset by
overtime. Undertime work on any particular
day shall not be offset by overtime work on
any other day. x x x
 Offsetting under-time against overtime would
deprive the employee of the additional
compensation for the overtime work he has
rendered. Undertime is covered only by the
regular hourly rate whereas overtime is
subject to additional overtime rate. If the two
are to be offset, the employee loses overtime
pay to which he is entitled.
 As a general rule, employees may not be
compelled to work in excess of eight hours or
to render overtime work on any given day
against his will.
 The exception to this rule is found in Article
89 of the Labor Code. Under the said article,
employees may be compelled to perform
overtime work.
 Country is at war or under any national or local
emergency;
 Necessary to prevent loss of life or property, or in
case of imminent danger to public safety;
 Urgent work to be performed on machines, etc., in
order to avoid serious loss or damage to
the employer;
 Work is necessary to prevent loss or damage to
perishable goods;
 Completion or continuation of work is necessary to
prevent serious obstruction or prejudice to the
business; or
 Necessary to avail of favorable weather or
environmental conditions.
 Article 82: The provisions of the Labor Code
on working conditions and rest periods shall
not apply to managerial employees. This
includes overtime pay for overtime work.
 Supervisory employees are considered as
officers or members of the managerial staff
(for purposes of LABOR STANDARDS), and
hence are not entitled to overtime, rest day
and holiday pay. (Nat’l Sugar Refineries Corp.
vs. NLRC, G.R. No. 101761. March 24, 1993).
 Republic Act 9492 amended Section 26,
Chapter 7, Book I of EO 292, also known as
the Administrative Code of 1987, declaring
certain days (specific or movable) as special
or regular holidays;
 RA 9849: Eidul Adha shall be celebrated as
a national holiday;
Regular Holidays
1. New Year’s Day
2. Maundy Thursday
3. Good Friday
4. Araw ng Kagitingan – April 9
5. Labor Day – May 1
6. Independence Day – June 12
7. National Heroes Day – Last Monday of August
8. Bonifacio Day - November 30
9. Christmas Day – December 25
10. Rizal Day – December 30
11. Eid al Fitr – Movable
12. Eid’l Adha – Movable
Special (Non-Working) Days
 Ninoy Aquino Day - August 21
 All Saints Day November 1
 Last Day of the Year – December 31
 Special Day (for all schools)
 EDSA Revolution Anniversary February 25
 Every employer covered by the Holiday Pay Rule
is entitled to his/her daily wage rate. This
means that the employee is entitled to 100% of
the daily wage rate, even if the worker did not
report for work, provided that the worker is
present or is on leave with pay on the work day
immediately preceding the holiday.
 Covered employees on leave with pay on the
day prior to the holiday are entitled to holiday
pay. The same is true for employees whose
rest day falls on the day prior the holiday.
 Those who are on leave without pay or are
absent on the day prior the holiday may not
be paid the holiday pay if he did not work
on the regular holiday.
 Work performed or rendered on the holiday
itself entitles the employee to at least twice
the latter’s daily rate.
 Where the holiday falls on the scheduled rest
day of the employee, work performed shall be
paid at an additional 30% of the regular holiday
rate, or at least 260%
 In cases where there are two successive
holidays (usually Maundy Thursday and Good
Friday), the employee who absents himself
from work on the day immediately preceding
the first holiday is not entitled to be paid for
both holidays, EXCEPT if he works on the first
holiday, in which case he is entitled to his
holiday pay on the second holiday.
 Premium Pay Definition. additional
compensation required by law to be paid to
employees for work performed on non-working
days, such as rest days and special days.
 “No Work, No Pay” Rule.
◦ During rest and special days, the principle of “no work,
no pay” applies. Workers who were not required or
permitted to work on those days are not by law entitled
to any compensation.
◦ This is consistent with the definition above that premium
pay is to be paid for work performed.
◦ Performance of work is necessary for entitlement to
premium pay.
 As a general rule, where an employee is made
or permitted to work on his scheduled rest
day, whether it is a regular day or a holiday,
he shall be paid an additional compensation
of at least 30% of his regular wage for that
day. The rule is different for work performed
on a rest day which is also a special day, in
which case, 50% of the regular daily rate is
added, instead of 30% of the daily rate for
special day.
 In sum, the premium pay rates for rest days
are as follows:
◦ For work performed on rest days, an additional 30%
of the daily rate or a total of 130%;
◦ For work performed on a rest day which is also a
special day, an additional of 50% of the daily rate or
a total of 150%; and
◦ For work performed on a regular holiday which is
also the employee’s rest day, an additional 30% of
the regular holiday rate of 200% or a total of 260%.
 Work on a Rest Day
Premium pay = 30% of Basic pay Rate on Rest day = Basic pay +
= 30% of P300.00 Premium pay
= 0.3 x P300.00 = P300.00 + P90.00
= P90.00 = P390.00
 Work on a Holiday Falling on a Rest Day
Premium pay = 30% of Daily rate on Rate on Rest Day falling on a Holiday
holiday = Daily rate on holiday + Premium
Daily rate on holiday = 200% of Basic pay
pay = P600.00 + P180.00
Daily rate on holiday =P300.00 x 2 = P780.00
Daily rate on holiday =P600.00 Or,
Premium pay = 0.3 x Daily rate on Rate = 260% of Basic pay
holiday = 2.6 x P300.00
= 0.3 x P600.00 = P780.00
= P180.00
 Work on a Special Day
Premium pay = 30% of Basic pay Rate on Special Day = Basic pay +
= 30% of P300.00 Premium pay
= 0.3 x P300.00 = P300.00 + P90.00
= P90.00 = P390.00
 Work on a Special Day Falling on a Rest Day
Premium pay = 50% of Basic pay Rate on Special Day on a Rest day =
= 50% of P300.00 Basic pay + Premium pay
= 0.5 x P300.00 = P300.00 + P150.00
= P150.00 = P450.00
 Where the nature of the work of the employee
is such that he has no regular workdays and
no regular rest days can be scheduled, he
shall be paid an additional compensation of
at least 30% of his regular wage for work
performed on Sundays and holidays.
 Using the definition of premium pay, holiday
pay is not a premium pay because it does not
require performance of work by the
employee. In case of holiday pay, the
employee is entitled payment even if he does
not work. The same cannot be said of
premium pay.
 Thus, unlike in premium pay, the principle
“no work, no pay” does not similarly apply to
holiday pay.
 PD 851, Thirteenth Month Pay Law, as amended
by Memorandum Order No. 28, requires all
employers to pay their employees a 13th month
pay not later than December 24 of every year.
 Originally, PD 851required payment of 13th
month pay to employees receiving not more than
P1,000 a month. MO 28 (1987), removed the
salary ceiling, and all rank and file employees
became entitled to a 13th month pay regardless
of the amount of their monthly basic salary
 All rank-and-file employees, regardless of their
designation or employment status, and irrespective of the
method by which their wages are paid, who have worked
at least one month during the calendar year are entitled to
13th month pay. Managerial employees are excluded from
the coverage of the law.
 The Labor Code distinguishes a rank-and-file employee
from a managerial employee. It provides that a managerial
employee is one who is vested with powers of prerogatives
to lay down and execute management policies and/or to
hire, transfer, suspend, lay-off, recall discharge, assign or
discipline employees, or to effectively recommend such
managerial actions.
 All employees not falling within this definition are
considered rank-and-file employees.
 Not less than 1/12 of the total basic
salary earned by the employee within the
calendar year.
 Only basic salary is included in the computation
of 13th month pay.
 Excludes allowances and monetary benefits
which are not considered or integrated as part of
the regular or basic salary.
 However, salary-related benefits should be
included as part of the basic salary in the
computation of the 13th month pay if by
individual or collective agreement, company
practice or policy, the same are treated as part of
the basic salary of the employees.
 Managerial employees;
 Those covered under the civil service law;
 Those already receiving 13th month pay or its
equivalent. Christmas bonus, mid-year bonus,
cash bonuses and other payments amounting to
not less than 1/12 of the basic salary are treated
as equivalent of 13th month pay;
 Those paid on purely commission, boundary, or
task basis, and those who are paid fixed amount
for performing specific work except those paid
on a piece-rate basis.
 Not entitled to 13th month pay if purely on
commission basis.
 Employees paid on partly commission basis,
i.e., those guaranteed with a fixed wage aside
from the commission, are entitled to 13th
month pay.
 Types of commission:
◦ Commission as an incentives or encouragement to
ensure productivity, i.e., productivity bonus – does
not form part of basic salary, not to be included in
computation (Boie Takeka case, 1993.)
◦ Commission as a direct remuneration for service
rendered – forms part of basic salary.
(see Philippine Duplicators v. NLRC, 1993.)
 Employees with multiple employers are
entitled to 13th month pay from all their
private employers.
 If employee works in two or more private
firms, he is entitled to the pay from both or
all of them. If he is a government employee,
but works part time in a private enterprise, he
is entitled to 13th month pay from the private
enterprise.
 Private school teachers are entitled to 13th
month pay regardless of the numbers of
months they work in a year, provided it is at
least one month.
 Employees who resigned or were separated
during the calendar year shall be entitled to
13th month pay in proportion to the length of
time he worked during the year, provided it is
at least one month.
 The payment may be demanded by the
employee upon the cessation of employment.
 For 2 to 3 years, Sevilla Trading, allegedly by
mistake, added the night premium, maternity
leave pay, etc., in the computation 13th
month pay. The court ruled that the inclusion
may no longer be withdrawn if it has already
ripened into a company practice. Nota
bene: There is no specific rule as to how
many years are necessary to constitute
“company practice”. (Sevilla Trading v. AVA
Tomas, GR No. 152456.)
 Employees paid according to “boundary”
system are not entitled to 13th mo pay.
Boundary system is where the employees do
not receive fixed wages, but retain only those
sums in excess of the “boundary” or fee they
pay to the owners or operators of their
vehicles. They are akin to employees paid on
purely commission basis. (R&E Transport v.
Latag, G.R. No. 155214.)
 Drivers who are paid on commission basis,
but with guaranteed minimum wage in case
their commission be less than their basic
minimum, are entitled to 13th month pay.
(PACIWU v. NLRC, GR No 107994.)
 Basis
 Article 95 (Book Three, Title I) of the Labor
Code provides the basis of the grant of
Service Incentive Leave to qualified
employees. Its implementation is covered by
Section 2, Rule V, Book III of the Omnibus
Rules.
 Employees entitled to SIL
 Every employee (subject to the exceptions
below) who has rendered at least one year of
service is entitled to yearly service incentive
leave of five days with pay.
 “At least one year of service”
 The term “at least one-year service” means
service for not less than 12 months, whether
continuous or broken.
 “At least one year of service”
 The 12-month period shall be reckoned from
the date the employee started working,
including authorized absences and paid
regular holidays.
 The only instance when service shall be
deemed as one year even when the employee
serves less than that period is when the
operation of the establishment is less than 12
months as a matter of practice or policy, or is
so provided in the employment contract
 The following employees are excluded from
entitlement to SIL under the Labor Code (but they
may be entitled to the same or similar benefits if
so provided under other laws, or collective
bargaining agreement or employment contract):
 Those of the government and any of its political
subdivisions, including government-owned and
controlled corporations;
 Domestic helpers and persons in the personal
service of another;
 Managerial employees as defined in Book Three
of the Labor Code;
 Field personnel and other employees whose
performance is unsupervised by the employer
including those who are engaged on task or
contract basis, purely commission basis, or
those who are paid a fixed amount for
performing work irrespective of the time
consumed in the performance thereof;
 Those who are already enjoying the benefit
herein provided;
 Those enjoying vacation leave with pay of at
least five days; and
 Those employed in establishments regularly
employing less than ten employees.
(Omnibus Rules)
 The service incentive leave may be used for
sick and vacation leave purposes. And, at the
end of the year, the unused SIL may be
commuted to cash.
 Under the Omnibus Rules, the unused service
incentive leave is commutable to its money
equivalent at the end of the year. [N.B. Not
found in the LC.]
 Instead of using up SIL, the employee may
accumulate it and opt for its commutation to
cash upon his resignation or separation from
employment.
 Computation of SIL
 In computing SIL, the basis shall be the salary
rate at the date of commutation. The
availment and commutation of this benefit
may be on a pro rata basis. (DOLE Handbook)
 An employee was hired on January 1, 1997,
and resigned on March 1, 1998. Assuming he
has not used or commuted any of his SIL
credits, he is entitled upon his resignation to
the commutation of his accumulated SIL as
follows:
 SIL earned as of Dec. 31, 1997 = 5 days
Proportionate SIL for Jan. and Feb. 1998 =
(2/12) x 5 days = 0.833 day
Total as of March 1, 1998 = 5.833 days
 Are part-time workers entitled to the full five
days SIL, or should the entitlement be on
pro-rata basis? Part-time workers are entitled
to full five days SIL. (BWC Advisory Opinion)
 The reason is that the Labor Code speaks of
number of months worked in a year, not
number of hours worked in a day, as basis for
entitlement.
 The Labor Code treats vacation leave and sick
leave under the same category as Service
Incentive Leave or leave with pay.
 Thus, the grant of vacation or sick leave with
pay of at least five days may be credited as
compliance with SIL. For example, if a
company is giving its employees 15 days
vacation leave, five days of which is with pay,
the five-days paid vacation leave may be
credited as SIL.
 Petitioner CIT claimed that teachers are not
entitled to SIL because they are engaged by
the school on contractual basis. The claim
was not sustained. It was held that the phrase
“those who are engaged on task or contract
basis” as mentioned in the Omnibus Rules
should be read in relation to “field
personnel”. Teachers, not being field
personnel, are entitled to SIL. (CIT vs. Ople,
1987.)
 Applying Article 291 of the Labor Code in light of
this peculiarity of the service incentive leave, we
can conclude that the three (3)-year prescriptive
period commences, not at the end of the year
when the employee becomes entitled to the
commutation of his service incentive leave, but
from the time when the employer refuses to pay
its monetary equivalent after demand of
commutation or upon termination of the
employee’s services, as the case may be. (Auto
Bus Transport, Inc. vs. Bautista, 2005)
 Petitioner’s contention that respondent is not
entitled to the grant of service incentive leave
just because he was paid on purely
commission basis is misplaced. What must be
ascertained in order to resolve the issue of
propriety of the grant of service incentive
leave to respondent is whether or not he is a
field personnel. (Auto Bus Transport, Inc. vs.
Bautista, 2005)
 Exemptions. To claim exemption from payment
of service incentive leave pay, it is the employer’s
duty to prove that it is covered under the
exemption. Thus, where the employer claims that
the employee is not entitled to service incentive
leave pay inasmuch as establishment employing
less than ten (10) employees are exempted from
paying service incentive leave pay, it has the duty
to prove that there were less than ten employees
in the company. (C. Planas Commercial, et al. vs.
NLRC, G.R. No. 144619, November 11, 2005.)
 Basis: Maternity leave benefits are found under
the Article 133 of the Labor Code and Section
14-A of “Social Security Act of 1997″ (Republic
Act No. 8282).
 Checklist for Availment of Maternity Benefits
under Social Security Act
◦ The pregnant woman employee must have paid at least
three monthly contributions within the 12-month period
immediately preceding the semester of her childbirth or
miscarriage.
◦ She has given the required notification of her pregnancy
through her employer if employed, or to the SSS if
separated, voluntary or self-employed member.
Attributes
Minimum Wage
 Definitions (Article 97)
 Person – An individual, partnership, association or
corporation, business trust, legal representative or
any organized groups of persons.
 Employer – includes any person acting directly or
indirectly in the interest of an employer in relation
to an employee and shall include the government
and all its branches, subdivisions and
instrumentalities, all government owned and
controlled corporations and institutions as well as
non-profit private institutions, or organizations.
 Employee – Any individual employed by an
employer; one who is suffered or permitted to work
in exchange for payment.
 Compensation paid to the employee for
work or services rendered. The regular
wage of an employee has the following
components: (1) Cash wages, which must
be in legal tender, and (2) facilities provided
by the employer.
 Remuneration or earnings, however designated,
 Capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, piece
or commission basis, or other method of
calculating the same,
 Payable by an employer to an employee under a
written or unwritten contract of employment
 For work done or to be done, or for services
rendered or to be rendered
 Includes the fair and reasonable value, as
determined by the DOLE Secretary of board,
lodging, or other facilities customarily furnished by
the employer to the employee.
 The phrase shall not include any profit to
the employer, or to any person affiliated
with the employer (see discussion on
facilities).
 Articles or services for the benefit of the employee or his
family
 Shall not include tools of the trade or articles or services
primarily for the benefit of the employer or necessary to the
conduct of the employer’s business.
 Facilities may be deducted from what is reflected as wages to
derive cash wages, provided:
◦ They are customarily given, and;
◦ The deduction must be with (a) voluntary acceptance and (b) the
written consent of the employee.
◦ Charged at a fair and reasonable value
 This is relevant in determining rates for computing overtime
and premium pay.
 Fair and reasonable value of board, lodging and
other facilities customarily furnished by an
employer both in agri and non-agri enterprises
 Supplements. – refer to extra
remuneration or special privileges or
benefits given to or received by laborers
over and above their ordinary earnings
or wages.
 Both are not part of the CASH COMPONENT of
wages;
 A facility is given for the benefit of the
employee. If necessary in order to maintain
health, efficiency of workers during work,
supplement
 The distinction lies not in the type of benefit
given (food, accommodations, sick leave, use
of facilities) but its purpose;
State Marine Cooperation and Royal Line, Inc. vs.
Cebu Seamen’s Association, L-12444, Feb. 1963:

 “Facilities may be charged to or deducted from

wages. Supplements on the other hand may not
be so charged. Thus, when meals are freely
given to crew members of a vessel while they
were on the high seas, not as part of their wages
but as a necessary matter in the maintenance of
the health and efficiency of the crew personnel
during the voyage, the deductions made
therefrom for the meals should be returned to
them, and the operator…should continue giving
the same benefit.”
Mayon Hotel & Restaurant vs. Adana (GR No.
157634, May 2005), citing Mabeza

 Food or snacks or other convenience provided by

the employers are deemed as supplements if they
are granted for the convenience of the employer.
 Considering…that hotel workers are required to
work different shifts and are expected to be
available at various odd hours, their ready
availability is a necessary matter in the
operations of a small hotel…The deduction of the
cost of meals from respondent’s wages,
therefore should be removed.
 Gratuity. – Is a gift freely given by the employer in
appreciation of certain favors or services rendered. It
is not part of wages since it is not intended as
compensation for actual work. It is not demandable
as a matter of right.
 Allowance, RATA – (DBM vs. Olivia Leones, GR No.
169726, March 18, 2010). Statutory law, as
implemented by administrative issuances and
interpreted in decisions has consistently treated
RATA as distinct from salary. Unlike salary, which is
paid for services rendered, RATA belongs to a basket
of allowances to defray expenses deemed
unavoidable in the discharge of office.
 Bonus – (Lepanto Ceramics, Inc. vs. Lepanto Ceramics
Employees Association, GR No. 180866, March 2, 2010). A
“bonus” is a gratuity or act of liberality of the giver. It is
something given in addition to what is ordinarily received
by or strictly due the recipient. A bonus is granted and
paid to an employee for his industry and loyalty which
contributed to the success of the employer’s business and
made possible the realization of profits. A bonus is also
granted by an enlightened employer to spur the employee
to greater efforts for the success of the business and
realization of bigger profits.
 In the same case, the Supreme Court ruled that a bonus is
not a demandable and enforceable obligation, except if it
was promised by the employer and agreed upon by the
parties (as when it is included in the CBA)
 Minimum wage represents the lowest
possible wage that an employer can
legally pay its employees.
 Aim of establishing minimum wage is
◦ To even out the distribution of income, and;
◦ Effectively increase the standard of living of
workers.
 Article 99: Minimum wage rates in every region
of the country for agricultural and non-
agricultural employees and workers shall be
prescribed by the RTWPBs. (Read this in relation
to Section 3, RA 6727).
 Republic Act No. 6727, also known as the
"Wage Rationalization Act" established a new
mechanism for minimum wage determination
through the creation of the National Wages and
Productivity Commission ( NWPC) and the
Regional Tripartite Wages and Productivity
Boards (RTWPBs) in all regions of the country.
 Basis for computing minimum wage. The
basis of computation of minimum wage
shall be the normal working hours which
shall not be more than eight hours a day.
 Wage Orders. The RTWPB promulgates
WAGE ORDERS pursuant to its wage-fixing
authority. Whenever conditions in a
particular region so warrant, the RTWPB
shall investigate and study all pertinent
facts and based on the standards and
criteria prescribed by RA 6727.
 The RTWPB shall consider the following in
determining minimum wage:
◦ The demand for living wages
◦ Wage adjustments vis-à-vis the Consumer Price Index
◦ Cost of living, and changes or increases therein
◦ Needs of workers and their families
◦ Need to induce industries to invest in the countryside
◦ Improvement of standards of living
◦ Prevailing wage levels
◦ Fair return of the capital invested and employers’
capacity to pay
◦ Effects on employment generation and family income
◦ Equitable distribution of income and wealth along the
imperatives of economic and social development
 Floor wage method – fixing of a determinate
amount to be added to the prevailing
statutory minimum wage
 Salary ceiling method – application of wage
adjustment to employees receiving a certain
denominated salary ceiling
 Read ECOP vs. NWPC, RTWPB-NCR & TUCP,
GR No. 96169, September 24, 199
 A situation where an increase in
prescribed wage rates results in the
elimination or severe contraction of
intentional quantitative differences in
wage or salary rates between and among
employee groups in an establishment as
to effectively obliterate the distinctions
embodied in such wage structure based
on skills, length of service, or other
logical bases of differentiation.
 ARTICLE 101. Payment by results. - (a) The
Secretary of Labor and Employment shall
regulate the payment of wages by results,
including “pakyao”, piecework, and other
non-time work, in order to ensure the
payment of fair and reasonable wage rates,
preferably through time and motion studies
or in consultation with representatives of
workers’ and employers’ organizations.
 Avelino Lambo & Vicente Belocura vs. NLRC &
J.C. Tailor/Johnny Co, GR No. 111042, October
26, 1999. - There are two categories of
employees paid by results:
1. Those whose time and performance are supervised
by the employer. (Here there is an element of
control and supervision over the manner as to how
the work is to be performed. A piece-rate worker
belongs to this category especially if he performs his
work in the company premises.); and
2. Those whose time and performance are
unsupervised (here, the employer’s control is over
the result of the work. Workers on pakyaw and
takay basis belong to this group).
 “Pakyao.” A system where a group of workers
(1) define their own work time and methods,
(2) share among themselves the wages (3)
commensurate to the results of their work.
 The wages earned by an individual in a
particular day may not be equal to the wage of
a regular worker. For this reason, the DOLE
must ensure that payment of wages by pakyao
or piece rate will be FAIR and REASONABLE,
considering the circumstances.
 Prohibition against elimination or
diminution of benefits.
 Nothing in the Labor Code shall be
construed to eliminate or in any way
diminish supplements, or other employee
benefits being enjoyed at the time of
promulgation of this Code. Article 100,
Labor Code.
 The principle of non-diminution of benefits
states that: “any benefit and supplement being
enjoyed by employees cannot be reduced,
diminished, discontinued or eliminated by
the employer.”
 The Constitution mandates the state to “protect
the rights of workers and promote their
welfare,” and “to afford labor full protection.”
This is the basis of Article 4 of the Labor Code
which states that “all doubts in the
implementation and interpretation of this
Code, including its implementing rules and
regulations shall be rendered in favor of labor.”
 Employee benefits are compensation given to
employees in addition to regular salaries or
wages. They may be required by law such as
social security benefits, PhilHealth, retirement
benefits, maternity benefits, service incentive
leave, etc., or voluntarily offered by the
employer as an incentive to attract and retain
employees as well as increase employee morale
and improve job performance.
 Supplements include those benefits or
privileges granted to an employee for the
convenience of the employer, e.g., board and
lodging within the company premises.
 In employment setting, the principle of
non-diminution of benefits finds
application when a change initiated by the
employer to existing company policies,
specially matters concerning employee
benefits, results in reduction, diminution or
withdrawal of some or all of the benefits
already enjoyed by the employees.
 TSPIC corporation vs. TSPIC Employee’s
Union (FFW), et al., GR No. 163419, Feb. 13,
2008. Diminution is manifested when:
 The grant or benefit is founded on a policy, or
has ripened into a practice over a long period of
time;
 The practice is consistent and deliberate;
 The practice is not due to error in the
construction or application of a doubtful or
difficult question of law, and;
 The diminution or discontinuance is done
unilaterally by the employer.
 With regard to the length of time the company practice
should have been exercised to constitute voluntary
employer practice which cannot be unilaterally
withdrawn by the employer, the Court has not laid down
any rule requiring a specific minimum number of years.
 In the case of Davao Fruits Corporation vs Associated
Labor Unions (G.R. No. 85073, August 24, 1993), the
company practice lasted for six years.
 In Davao Integrated Port Stevedoring Services vs.
Abarquez (G.R. No. 102132, March 19, 1993), the
employer, for three years and nine months, approved
the commutation to cash of the unenjoyed portion of
the sick leave with pay benefits of its Intermittent
workers.
 In Tiangco vs Leogardo, Jr. (G.R. No. L-57636, May
16, 1983), the employer carried on the practice of
giving a fixed monthly emergency allowance from
November 1976 to February 1980, or three years
and four months.
 In the case of Sevilla Trading Company vs Semana,
ibid., the employer kept the practice of including
non-basic benefits such as paid leaves for unused
sick leave and vacation in the computation of their
13th-month pay for at least two (2) years.
 In all these cases, the grant of benefits has been
held to have ripened into company practice or
policy which cannot be peremptorily withdrawn.
 Integration of Monetary Benefits to the Basic Pay
 ARTICLE 102. Forms of payment. - No employer shall pay the wages of an
employee by means of promissory notes, vouchers, coupons, tokens, tickets,
chits, or any object other than legal tender, even when expressly requested by the
employee le or under other special circumstances to be determined by the
Secretary of Labor and Employment in appropriate regulations, in which case, the
worker may be paid through another person under written authority given by the
worker for the purpose; or (b) Where the worker has died, in which case, the
employer may pay the wages of the deceased worker to the heirs of the latter
without the necessity of intestate proceedings. The claimants, if they are all of
age, shall execute an affidavit attesting to their relationship to the deceased and
the fact that they are his heirs, to the exclusion of all other persons. If any of the
heirs is a minor, the affidavit shall be executed on his behalf by his natural
guardian or next-of-kin.
 The affidavit shall be presented to the employer who shall make payment through
the Secretary of Labor and Employment or his representative. The representative
of the Secretary of Labor and Employment shall act as referee in dividing the
amount paid among the heirs. The payment of wages under this Article shall
absolve the employer of any further liability with respect to the amount paid.
 ONLY LEGAL TENDER (subject to exemptions)
 Prohibited forms of payment, even when
expressly requested by the employee.
◦ Promissory notes;
◦ Vouchers;
◦ Coupons;
◦ Tokens;
◦ Tickets;
◦ Chits; or
◦ Any object other than legal tender.
 Congson v. NLRC, 243 SCRA 260 (1995)
 Payment by check or money order may be allowed if the
same is:
◦ Customary;
◦ Necessary because of special circumstances as determined by
the Secretary of Labor;
◦ Stipulated in the CBA; or
◦ Where the following conditions are met:
 bank or other facility for encashment within of 1 kilometer from
workplace;
 The employer, his agents or representatives, does not receive any
pecuniary benefit directly or indirectly from the arrangement;
 reasonable time given during banking hours to withdraw wages
from the bank, considered as compensable hours worked if done
during working hours; and
 The payment by check is with written consent of the employees
concerned if there is no CBA
 General Rule:
◦ At least once every two weeks; or
◦ Twice a month at intervals not exceeding 16 days.
 Exceptions:
◦ Force majeure or other circumstances beyond the
employer's control
◦ If engaged to perform a task which cannot be completed in
2 weeks and in the absence of CBA or arbitration award:
 Payment shall be made at intervals not exceeding 16 days, in
proportion to the amount of work completed;
 That final settlement is made upon completion of the work.
 Gilles v. CA, Schema Konsult, 589 SCRA 399 (2009)
 General Rule: At or near the place of undertaking.
 Exceptions:
◦ Deterioration of peace and order conditions, or by reason of
actual or impending emergencies caused by fire, flood or other
calamity rendering payment thereat impossible;
◦ Free transportation to the employees back and forth; and
◦ Analogous circumstances.

 Note: No employer shall pay his employees in any bar,

night or day club, drinking establishment, massage
clinic, dance hall, or other similar places or in places
where games are played with stakes of money or things
representing money except in the case of persons
employed in said places. (Sec. 4, Rule VIII, Book III,
Rules Implementing the Labor Code)
 Written permission of the majority of the
employees in an establishment;
 Establishment must have at least 25
employees; and
 The establishment must be located within a
one-kilometer radius of the bank
 With the written consent of the employee concerned;
 Given reasonable time to withdraw their wages from the bank
facility which, if done during working hours, shall be
considered as compensable hours worked;
 System allows employee to receive wage within the period
and amount prescribed by PD 442;
 Bank or ATM facility within 1 km. of workplace;
 Upon request of concerned employee, employer shall issue a
record of payment of wages, benefits & deductions for a
particular period;
 Shall neither result in diminution of benefits and privileges of
the employee nor shall incur additional expenses in the
process; and
 Employer shall assume full responsibility in case the wage
protection provisions of law and regulations are not complied
with under the arrangement
 General Rule: Wages shall be paid directly to
the workers to whom they are due.
 Exceptions (Payment through another person)
◦ Force majeure rendering such payment impossible
provided said person is under written authority given
by the worker for the purpose;
◦ When authorized under existing law, including
payments for insurance premiums of the employee
and union dues where the right to check-off has been
recognized by the employer in accordance with a CBA
or authorized in writing by the individual employees,
concerned.
 Heirs of the worker, even without intestate proceedings.
 Claimants shall execute an affidavit attesting their
relationship to the deceased and the fact that they are his
heirs, to the exclusion of all others (Affidavit of Next of Kin);
 In case of a minor heir, affidavit shall be executed on his
behalf by his natural guardian or next of kin;
 Affidavit shall be presented to the employer who shall make
payment through the Secretary of Labor or his representative;
 The representative shall act as referee in dividing the amount
paid among the heirs; and
 Payment of wages under this Article shall absolve the
employer of any further liability with respect to the amount
paid. (Sec. 6, Rule VIII, Book III, Rules Implementing the Labor
Code)
 Payment of wages in non-cash form;
 Payment of wages in night and day clubs,
bars, dance halls and other similar places;
 Non-diminution of wages; and
 Non-interference by the employers in the
employees' disposition of their wages.
(Article 112)
 Non-interference by the employers in the
employees' disposition of their wages.
(Article 112) – relates to compulsion or
obligation to purchase merchandise from
employers store.
 Unsanctioned wage deduction (Art. 113) –
relating to consented insurance and union
dues, as well as deductions authorized by
SOLE
 Deposits for Loss or Damage (Art. 114-115)
◦ prohibited unless customary in trade.
◦ Prior to deduction from deposit employee has
been heard thereon and responsibility clearly
shown
 Withholding of wages and kickbacks (Art.
116)
 Deduction to ensure employment (Art. 117)
 Retaliatory measures (Art. 118)
 An arrangement whereby a principal agrees
to put out or farm out with a contractor or
subcontractor the performance or
completion of a specific job, work or service
within a definite or predetermined period,
regardless of whether such job, work, or
service is to be performed or completed
within or outside the premises of the
principal.
 Trilateral Relationship; parties involved are:
◦ Principal;
◦ Contractor/subcontractor; and
◦ Contractual workers.
 Two contracts exist:
◦ Between principal and contractor: Contract for
specific job, work or service
◦ Between contractor and its workers: Employment
contract
 Contractor has distinct and independent
business and undertakes to perform the job on
his own account and under his own
responsibility according to its own manner and
method, free from the control and direction of
the principal in all matters connected with the
performance of the work except as to the
results thereof.
 The contractor or subcontractor has substantial
capital or investment in tools, equipment and
machineries, work premises and other
materials necessary in the conduct of his
business;
 Capital stocks and subscribed capitalization in the
case of corporations, tools, equipment,
implements, machineries and work premises,
actually and directly used by the contractor or
subcontractor in the performance or completion of
the job, work or service contracted out.
 The agreement between the principal and
contractor or subcontractor assures the
contractual employees entitlement to all labor
and occupational safety and health standards,
free exercise of the right to self-organization,
security of tenure and social and welfare
benefits (D.O. No. 10 of 1997; Baguio v. NLRC,
GR Nos. 79004—08, October 4, 1991); and
 Must be properly registered as such in
accordance with D.O. No. 18-A. Absence of a
registration only gives rise to the presumption
that the contractor is engaged in labor-only
contracting
 Labor Only Contracting – an arrangement
where the contractor or subcontractor merely
recruits, supplies or places workers to perform
a job, work or service for a principal, and ANY
of the following ELEMENTS is present:
◦ The contractor or subcontractor does not have
substantial capital OR investment which relates to the
job, work or service to be performed, and
the employees recruited, supplied or placed by such
contractor or subcontractor are performing activities
which are directly related to the main business of the
principal; or
◦ The contractor does not exercise the right to control
over the performance of the work of the contractual
employee.
1. Labor-only contracting;
2. Contracting that Terminates the employment of
regular employees, or reduces their work hours, or
reduces or splits a bargaining unit, if such contracting
out is not done in good faith and not justified by
business exigencies;
3. Contracting with a Cabo - person/s or labor group
which, in the guise of a labor organization, supplies
workers to an employer, with or without any monetary
or other consideration whether in the capacity of an
agent of the employer or as an ostensible
independent contractor;
4. Contracting with In-house agency;
5. Contracting because of a Strike or lockout; and
6. Contracting that constitutes ULP under Art. 248.
1. Legitimate contracting is permissible, labor-only
contracting is illegal
2. Principal in legitimate contracting is an indirect
employer of contract employees, and has limited
liability; Principal in labor-only contracting is a direct
employer, and carries all liabilities of an employer
3. In legitimate contracting, the principal becomes
solidarily liable with the contractor in the event the latter
fails to pay the employees’ wages and for violation of
labor standard laws, but does not extend to the payment
of back wages or separation pay for employees who are
illegally dismissed. In labor only contracting, he is
solidarily liable for all rightful claims under the Labor
Code and other related laws
4. Substantial capital is present in legitimate contracting
only
exercise of DOLE powers under Article 128 anchored on the following
requisites:
Does the employer-employee relationship exist?
Are there violations of the Labor Code or of any labor law?
Has there been a formal complaint filed against the employer?
DOLE'S prerogative to determine the existence of Er-Ee relationship is not
coextensive with the visitorial and enforcement power. Such
determination is merely preliminary, incidental and collateral to the
DOLE'S primary function of enforcing labor standards provisions. The
determination of the existence of employer-employee relationship is still
primarily lodged with the NLRC. This is the meaning of the clause "in cases
where the relationship of employer-employee still exists" in Art. 128 (b).
The existence of an employer-employee relationship is a statutory
prerequisite to and a limitation on the power of the Secretary of Labor,
one which the legislative branch is entitled to impose. (People's
Broadcasting v. Secretary of the DOLE, G.R. No. 179652, May 8, 2009)
The DOLE has Quasi-Judicial Power. It bears emphasis that the DOLE, under Article 106 of the Labor Code, as
amended, exercises quasi-judicial power, at least to the extent necessary to determine violations of labor
standards provision of the Code and other labor legislation. She/he (DOLE Secretary) on the Regional Directors
can issue compliance orders and writs of execution for the enforcement thereof (Jethro Intelligence & Security
Corp. and Yakult Phil. v. Hon. Secretary of Labor and Employment, et al, GR No. 172537, August 14, 2009).
Visitorial Power – power of the Secretary of Labor or any of his duly authorized representatives to have access to
employer’s records and premises at any time of the day or night whenever work is being undertaken therein.
•It includes the right to copy therefrom, to question any employee and investigate any fact, condition or matter
which may be necessary to determine violations or which may aid in the enforcement of the Code and of any labor
law, wage order, or rules and regulations.
Enforcement Power (as amended by R.A. 7730) – power of the Secretary of Labor to compel employer to comply
with labor standards upon finding of violations discovered in the course of the exercise of the visitorial power.
•Only claims where employer-employee relations still exist can be covered
•Includes the power to:
•Issue Compliance Orders based on the findings of labor employment and enforcement officers or industrial safety
engineers made in the course of inspection, and must observe 7 cardinal requirements of due process in
administrative proceeding;
•Issue Writs of Execution for the enforcement of orders except in cases where the employer contests the findings of
the said labor officers and raises issues supported by documentary proofs which were not considered in the
course of inspection;
•Order Work Stoppage/Suspension of Operations when non-compliance with the law or implementing rules and
regulations poses grave & imminent danger to the health and safety of the workers in the workplace; and
•Conduct hearings within 24 hours to determine whether:
•An order for stoppage of work/suspension of operations shall be lifted or not; and
•Employer shall pay the employees concerned their salaries in case the violation is attributable to his fault.
Procedure:
 Art. 128 Art. 129
Sec. of Labor or his duly Regional Director or any
authorized duly authorized hearing
Who Exercises Power representative who may officer of DOLE
or may not be a
Regional Director

Compaint
In case or Routine
party disagrees withInspection
RD's findings

Actual Inspection (InspectorHearing

lists the violation in his checklist)

Decision
Inspector's Finding of Violation
MR plus Bond Appeal plus Bond

(8-10 days with Secretary of Labor)

Issuance of Compliance Order
(certiorari with the CA within 60 days)

In case of non-compliance: Issuance

Work of Writ of Non-Compliance
Stoppage
 Distinct but complementary powers
 Granted by the Labor Code to the SOLE or his
authorized representatives
 To administer and to enforce labor laws
 Grants to DOLE officials, including LEOs:
◦ access to employer's records and premises at any
time of the day or night whenever work is being
undertaken therein,
◦ right to copy such records,
◦ question any employee
◦ investigate any fact, condition or matter which may
be necessary to determine violations or which may
aid in the enforcement of the Labor Code and of
any labor law, wage order or rules and regulations
issued pursuant thereto (Art. 128 (a)).
 Issue compliance orders to give effect to the
labor standards provisions of the Labor Code
and other labor legislation based on the
findings of LEOs or industrial safety engineers
made during inspection, and
 Issue writs of execution to the appropriate
authority for the enforcement of their orders
◦ except where employer contests LEOs’ findings and
raises issues supported by documentary proofs not
considered during inspection." (Art. 128 (b).
 If employer-employee relationship still exists, any aggrieved
employee may file a complaint, regardless of the amount of
monetary claims, before the DOLE regional office, or its
provincial field offices, which has territorial jurisdiction over the
workplace.
 On the other hand, if employer-employee no longer exists,
either:
◦ before the DOLE regional office, provided, that the claim involves recovery
of wages and other monetary claims and benefits, including legal interest,
provided further, the following requisites are present: a) the claim is
presented by an employee, or a person employed in domestic or
household service, or house helper; b) the claim arise from employer-
employee relations; c) the claimant does not seek reinstatement; and d)
the aggregate money claim of each claimant does not exceed P5,000.00;
or
◦ before the Regional Arbitration Branch of the National Labor Relations
Commission, in the absence of any of the above enumerated requisites
pursuant to Article 217 of the Labor Code, except claims for employees’
compensation, social security, medicare and maternity benefits.
 References: Arts. 130-138; Omnibus Rules, Book
III, Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 &
XIII, Sec. 14; Women in Development and Nation
Building Act (RA 7192); Anti-Sexual Harassment
Act of 1995 (RA 7877); Anti-Violence Against
Women and Their Children Act of 2004 (RA 9262);
The Magna Carta of Women (RA 9710)
 Women under the Constitution, Art. II, Sec. 14; Art
XIII, Sec 14
 Philippine Association of Service Exporters v.
Drilon, 163 SCRA 386 (1988)
 Phil. Telegraph and Telephone Co. v. NLRC, 272
SCRA 596 (1997)
 Republic Act 9710
 Signed into law August 14, 2009
Coverage:
I. General Provisions
II. Definition of Terms
III. Duties Related to the Human Rights of
Women
IV. Rights and Empowerment
V. Rights and Empowerment of Marginalized
Sectors
VI. Institutional Mechanisms
 Affirms the role of women in nation building
 Ensures the substantive equality of women
and men;
 Condemns discrimination against women, in
keeping with CEDAW and other International
Instruments, consistent with Philippine Law;
 Affirms women’s rights as human rights;
 Provides for the intensification of efforts to
fulfill its duties under international and
domestic law to recognize, respect, protect,
fulfill and promote women’s rights and
freedom, especially marginalized women, in
all fields
 Reaffirms the right of women to participate in
policy formulation, planning, organization,
implementation, management monitoring,
and evaluation of all policies, programs and
services that affect them
◦ Universal and Inalienable: all human beings are free
and equal in dignity and rights;
◦ Indivisible: inherent to the dignity of every human
being whether in civil, cultural, economic, political
or social issues;
◦ Interdependent and interrelated: the fulfillment of
one right often depends, wholly or in part upon the
fulfillment of others;
◦ All individuals are equal as human beings by virtue
of the inherent dignity of each human person
◦ Rights-based approach principles
 Defines Discrimination Against Women in
accordance with the Convention on the
Elimination of All Forms of Discrimination
Against Women (CEDAW).
 Discrimination Against Women also include:
◦ any act or omission that directly or indirectly
excludes or restricts women in the recognition and
promotion of their rights and their access to and
enjoyment of opportunities, benefits, or privileges

◦ measures or practices of general application that fail

to provide for mechanisms to offset or address sex
or gender-based disadvantages or limitations of
women, as a result of which women are denied or
restricted in the recognition and protection of their
rights

◦ measures or practices of general application which

resulted to greater adverse effects to women, more
than men
 Defines marginalized sector to include
women in the following sectors and
groups:
- Small Farmers and Rural Workers
- Fisherfolk
- Urban Poor
- Workers in the Formal Economy
- Workers in the Informal Economy
- Migrant Workers
- Indigenous Peoples
- Moro
- Children
- Senior Citizens
- Persons with Disabilities
- Solo Parents
 Defines the following terms:
◦ Substantive Equality
◦ Gender Equality
◦ Gender Equity
◦ Gender and Development (GAD)
◦ Gender Mainstreaming
◦ Temporary Special Measures
◦ Violence Against Women (VAW)
◦ Women in the Military
◦ Social Protection
 Provides that the State, private sector, society
in general, and all individuals shall
contribute to the recognition, respect and
promotion of the rights of women defined
and guaranteed under the Act.

 The Chapter also includes the following

sections:
◦ The State as the Primary Duty-Bearer
◦ Duties of the State Agencies and Instrumentalities
◦ Suppletory Effect
 Human Rights of Women include all
rights in the Constitution and those
rights recognized under international
instruments duly signed and ratified by
the Philippines, in consonance with
Philippine law, which shall be enjoyed
without discrimination
 Right to Protection from Violence
◦ Incremental increase in the recruitment and
training of women in fields that provide
services for women victims of gender-related
offenses
◦ Protection and security in situations of armed
conflict and militarization
◦ Mandatory human rights and gender-
sensitivity training for all government
personnel involved in the protection and
defense of women against gender-based
violence
◦ Establishment of VAW Desk in every barangay
 Right to protection and security in times of
disasters, calamities, and other crisis
situations
 Right to participation and representation:
includes undertaking temporary special
measures and affirmative actions to
accelerate and ensure women’s equitable
participation and representation in third
level civil service, development councils and
planning bodies, international bodies,
political parties, private sector, and other
policy and decision-making bodies.
 Right to equal treatment before
the law – requires review and, if
necessary, amendment or repeal
of laws that are discriminatory to
women within three (3) years
from the effectivity of the MCW
 Right to equal access and elimination of
discrimination in education, scholarships, and
training:
◦ Use of gender-sensitive language and revision of
gender stereotypes and images in educational
materials and curricula
◦ Encouraging enrollment of women in non-traditional
skills training in vocational and tertiary levels
◦ Outlawing the expulsion and non-readmission of
women faculty due to pregnancy outside of marriage
◦ Prohibiting schools from turning out or refusing
admission to a female student solely on the account of
her having contracted pregnancy outside of marriage
during her term in school.
 Participation of women and girls in
sports
 Elimination of discrimination against
women in the military, police and other
similar services
 Non-discriminatory and non-derogatory
portrayal of women in media and film
 Right to Health
◦ A. Comprehensive Health Services ensures
access to the following services:
 Maternal care to include pre and post natal services
to address pregnancy and infant health and
nutrition
 Promotion of breastfeeding
 Responsible, legal, safe and effective methods of
family planning
 Family and State collaboration in youth sexuality
education and health services
 Right to Health
◦ A. Comprehensive Health Services ensures
access to the following services:
 Prevention and management of RTI, STD and
HIV/AIDS
 Prevention and management of reproductive tract
cancers and other gynecological conditions and
disorders
 Prevention of abortion and management of
pregnancy-related complications
 Right to Health
◦ A. Comprehensive Health Services ensures
access to the following services:
 Services for survivors of VAW
 Prevention and management of infertility and
sexual dysfunction pursuant to ethical norms and
standards
 Care of the elderly women beyond their child-
bearing years
 Management, treatment and intervention of mental
health problems or women and girls
 Promotion of healthy lifestyle activities
 Right to Health
◦ B. Comprehensive health information and
education on all aspects of women’s health
referred to in para. A, for women in all sectors,
with due regard to:
 Natural and primary right and duty of parents in
rearing the youth
 Formation of a person’s sexuality that affirms
human dignity
 Legal, ethical, safe and effective family planning
methods including fertility awareness
 Special leave benefit of 2 months with full
pay following surgery caused by
gynecological disorders

 Equal rights in all matters relating to

marriage and family relations
 Right to Food Security and Productive
Resources
 Right to Housing
 Right to Decent Work
 Right to Livelihood, Credit, Capital, and
Technology
 Right to education and Training
 Right to Representation and Participation
 Right to Information
 Social Protection
 Recognition and Preservation of Cultural Identity
and Integrity
 Peace and Development
◦ Participation in discussions and decision-making in the
peace process
◦ Inclusion of women’s concerns in the peace agenda
◦ Consideration for the specific needs of women and girls in
the protection of civilians in conflict-affected communities
◦ Inclusion of peace perspective in education curriculum
◦ Recognition and support for women’s role in conflict-
preventions, management and resolution and
peacemaking, and in indigenous systems of conflict
resolution
 Services and Interventions for women in
especially difficult circumstances
 Protection of Girl-Children
 Protection of Senior Citizens
 Recognition and protection of women’s
rights defined under the MCW, including
right to non-discrimination
 Prohibition of discrimination against
women
 RA 7610 as amended by RA 9231
 Article II Section 13: The State recognizes the
vital role of the youth in the nation-building
and shall promote and protect their physical,
moral, spiritual, intellectual, and social well-
being…

 Section 18: The State affirms labor as a primary

social economic force. It shall protect the rights
of workers and promote their welfare
 to provide special protection to children from all forms of abuse,
neglect, cruelty exploitation and discrimination and other conditions,
prejudicial their development including child labor and its worst
forms ;
 provide sanctions for their commission and carry out a program for
prevention and deterrence of and crisis intervention in situations of
child abuse, exploitation and discrimination;
 to protect and rehabilitate children gravely threatened or
endangered by circumstances which affect or will affect their survival
and normal development and over which they have no control; and

 every effort shall be exerted to promote the welfare of children and

enhance their opportunities for a useful and happy life.
 Children refers to person below eighteen (18) years
of age or those over but are unable to fully take care
of themselves or protect themselves from abuse,
neglect, cruelty, exploitation or discrimination because
of a physical or mental disability or condition;

 Child labor refers to any work or economic activity

performed by a child that subjects him or her to any
form of exploitation or is harmful to his or her health
and safety or physical, mental or psychosocial
development. Child labor is prohibited and
punishable by law
Circumstances which gravely threaten or endanger
the survival and normal development of children

◦ Being in a community where there is armed conflict or being

affected by armed conflict-related activities;

◦ Working under conditions hazardous to life,

safety and normal which unduly interfere with
their normal development;

◦ Living in or fending for themselves in the streets of urban or

rural areas without the care of parents or a guardian or basic
services needed for a good quality of life;
◦ Being a member of a indigenous cultural community and/or
living under conditions of extreme poverty or in an area
which is underdeveloped and/or lacks or has inadequate
access to basic services needed for a good quality of life;
◦ Being a victim of a man-made or natural disaster or
calamity; or
◦ Circumstances analogous to those above stated which
endanger the life, safety or normal development of children.

Did you know?

There are roughly about 5.59 million

working children ages 5-17 years old.
 Worst form of labor

1) All forms/practices of slavery;

2) Prostitution and pornography;
3) For illegal or illicit activities,
4) Hazardous activities or conditions

Did you know?

Central Luzon, Bicol, Western Visayas, Northern

Mindanao, and Central Visayas are regions
which has the highest incidence of worst forms
of child labor.
1. Work which exposes children to physical, psychological or sexual
abuse,
2. Work underground, under water, at dangerous heights or at
unguarded heights of two meters and above, or in confined places.
3. Work with dangerous machinery, equipment and tools,
4. Work in an unhealthy environment which may expose children to
hazardous processes, to temperatures, noise levels or vibrations
damaging to their health,
5. Work under particularly difficult conditions.

Did you know?

2.993 million child laborers are
exposed to hazardous conditions in the
Philippines.
1. When a child works directly under the sole responsibility of his/her parents or
legal guardian and where only members of his/her family are employed:

The following requisites must concur:

a) his employment neither endangers his life, safety and health and
morals, nor impairs his normal development; and
b) the parent or legal guardian shall provide the said minor child with the
prescribed primary and/or secondary education

Did you know?

60% of child laborers in the country

are in the agricultural sector.
2. Employment in public entertainment or information

The following requisites must concur:

◦ There must be an employment contract concluded by the
child’s parents or legal guardian of said child;
◦ express agreement of the child concerned, if possible
◦ Said contract must be approved by the Department of Labor
and Employment.
◦ There must be a work permit from DOLE

Did you know?

Between the ages of 5 to 7 years, one

in every six children has to work to earn a living
and help support his or her family
1. The employer should comply with the Rules on hours of
work for minors;

2. The employment must not endanger the child’s life,

safety, health and morals, nor impair the child’s normal
development;

3. The employer must provide the child with at least the

mandatory elementary or secondary education; and

4. The employer must secure from the DOLE a work

permit for the child before engaging him to work.
below 15 y/o –not more than 20hrs/ week; not more
than 4hrs/day;
*not allowed to work from 8pm-6am

15)y/o -18y/o– not more than 40hrs/week; not more

than 8hrs/day
* not allowed to work from10pm-6am
 Must be Verified and contains:

1. Terms and conditions of employment

2. Measures to ensure the protection, health, safety,

morals, and normal development of the child,
No child below 18 years of age shall be employed as a model
in any advertisement directly or indirectly promoting
alcoholic beverages, intoxicating drinks, tobacco and its
byproducts, gambling or any form of violence or
pornography.

Did you know?

There are more laborer boys than

girls.
Art. 140 of the Labor Code Prohibits Against Child
Discrimation and states that “No employer shall
discriminate against any person in respect to terms
and conditions of employment on account of his age”.
 Offended party;
 Parents or guardians;
 Ascendant or collateral relative within the third degree of
consanguinity;
 Officer, social worker or representative of a licensed child-
caring institution;
 Officer or social worker of the DSWD;
 Barangay chairman of the place where the violation
occurred, where the child is residing or employed; or
 At least three (3) concerned, responsible citizens where the
violation occurred."
 Any employer who violates provisions on conditions of employment,
and the prohibition on employment of this act
◦ imprisonment of 6 months and 1 day to 6 years; or
◦ fine of not less than P50,000.00 but not more than P300,000.00;
or
◦ both at the discretion of the court.

 Any person who violates the prohibition on worst form of child labor or
the employer of the subcontractor who employs, or the one who
facilitates the employment of a child in hazardous work
◦ imprisonment of not less than 12years and 1 day to 20 years; or
◦ fine of not less than P100,000.00 but not more than
P1,000,000.00;or
◦ both such fine and imprisonment at the discretion of the court.
 Any person who violates the prohibition of other worst
forms of labor
◦ Penalty under "Anti-trafficking in Persons Act of 2003 or
"Comprehensive Dangerous Drugs Act of 2002, as the case may
be“-- in its maximum period.

 Parents and legal guardians found to be violating

provisions on conditions of employment and their
obligations.
◦ fine of not less than P10,000.00 but not more than P100,000.00,
or be required to render community service for not less than 30
days but not more than 1 year, or both such fine and community
service at the discretion of the court:
◦ WHAT IF a person violated the provisions of this Act three (3)
times?
 maximum length of community service shall be imposed , in addition
to the community service, the penalty of imprisonment of 30 days but
not more than 1 year or both at the discretion of the court
 Republic Act No. 10361: an Act Instituting Policies
for the Protection and Welfare of Domestic Workers,
otherwise known as ‘Domestic Workers Act’ or ‘Batas
Kasambahay.’

 signed into law - 18 January 2013, effective 04 June

2013;

 Considered as a landmark piece of labor and social

legislation
◦ Recognizes for the first time domestic workers as similar to
those in the formal sector.
◦ Strengthens respect, protection, and promotion of the
rights and welfare of domestic workers or kasambahay.
 All kasambahay engaged in domestic work, whether
on a live-in or live-out arrangement, such as, but not
limited to, the following:
a. general househelp;
b. yaya;
c. cook;
d. gardener;
e. laundry person;
f. working children or domestic workers 15 years and
above but below 18 years of age; or
g. any person who regularly performs domestic work
in one household on an occupational basis (live-out
arrangement).
a. Service providers;
b. Family drivers;
c. Children under foster family arrangement;
and
d. Any other person who performs work
occasionally or sporadically and not on an
occupational and regular basis.
 Children under foster family arrangement:
Those living with a family or household of
relative/s and are provided access to
education and given an allowance incidental
to education, i.e., “baon,” transportation,
school projects, and school activities;
provided, that the foster family and foster
care arrangements are in compliance with the
procedures and requirements as prescribed
by Republic Act No. 10165 or Foster Care Act
of 2012.
 A janitress doing irregular laundry work for a
household during rest day;
 A construction worker doing casual
gardening job for a household; or
 A hospital nurse or a student doing baby-
sitting job.
 At least 15 years old
 conditions for employment of children 15 but
below eighteen 18 years of age
◦ a. Maximum of eight hours a day, 40 hours a week;
◦ b. Not allowed to work between 10 PM and 6 AM of
the following day;
◦ c. No hazardous work; and
◦ d. Allowed access to education and training.
 Employer may hire direct or through a PEA
 All expenses borne by employer
 Employer and Domestic Worker must execute a written contract
of employment
a. Duties and responsibilities of the domestic worker;
b. Period of employment;
c. Compensation;
d. Authorized deductions;
e. Hours of work and proportionate additional payment;
f. Rest days and allowable leaves;
g. Board, lodging and medical attention;
h. Agreements on deployment expenses, if any;
i. Loan agreement;
j. Termination of employment; and
k. Any other lawful condition agreed upon by both parties.
 SEC. 5. Standard of Treatment. – No abuse or physical violence or harassment or any act
tending to degrade the dignity of a domestic worker.
 SEC. 6. Board, Lodging and Medical Attendance. – The employer shall provide for the basic
necessities of the domestic worker; at least three meals a day; safe & humane sleeping
arrangements; rest and assistance in case of illnesses and injuries sustained during service
without loss of benefits. Employer shall not withdraw basic necessities as punishment or
disciplinary action to the domestic worker.
 SEC. 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be
guaranteed at all times and shall extend to all forms of communication and personal effects.
 SEC. 8. Access to Outside Communication. – access to outside communication during free time,
except in case of emergency.
 SEC. 9. Right to Education and Training. – The employer shall afford the domestic worker the
opportunity to finish basic education and may allow access to alternative learning systems and,
as far as practicable, higher education or technical and vocational training. The employer shall
adjust the work schedule of the domestic worker to allow such access to education or training
without hampering the services required by the employer.
 SEC. 10. Prohibition Against Privileged Information. – All communication and information
pertaining to the employer or members of the household shall be treated as privileged and
confidential, and shall not be publicly disclosed by the domestic worker during and after
employment. Such privileged information shall be inadmissible in evidence except when the
suit involves the employer or any member of the household in a crime against persons,
property, personal liberty and security, and chastity.
 Monthly minimum wage
 Daily rest period
 Weekly rest period
 5 days annual SIL with pay
 13th month pay
 SSS, Philhealth and Pag-IBIG coverage
 Copy of employment contract
 Certificate of employment
 Freedom from wage disposal interference
 Right to form, join or assist labor
organizations
 Religious freedom
 Termination of employment
 Right to require pre-employment documents
 Recover deployment expenses
 Forfeit 15-day unpaid salary for unjustified
departure
 Termination of employment on justifiable
grounds
 Demand replacement
 Privileged communication
 Verbal or emotional abuse
 Inhumane treatment
 Commission of crime or offense
 Violation of contract and other standards
 Disease prejudicial to kasambahay, employer
or member of household
 Analogous causes
 Misconduct or willful disobedience in
connection with work
 Gross or habitual neglect or ineptitude in
performance of duties
 Fraud or willful breach of trust
 Commission of a crime or offense against
employer or member of the family
 Violation of terms and conditions or
employment
 Disease
 Analogous causes
 Removes prohibition of night work for women
(Article 130) and necessarily, the rules on
exceptions to the prohibition (Art. 131) of
the Labor Code.
 Inserts new chapter entitled “Employment of
Night Workers”
 “Night worker”
◦ any employed person whose work requires
performance of a substantial number of hours of
night work which exceeds a specified limit. This
limit shall be fixed by the Secretary of Labor after
consulting the workers’ representatives/labor
organizations and employers. (Art. 154, LC as
amended by RA 10151)
◦ Any employed person whose work covers the period
10 o’clock in the evening ot 6 o’clock the following
morning provided that the worker performs no less
than seven consecutive hours of work (Sec. 2, DO
119-12)
 All persons, who shall be employed or permitted or
suffered to work at night, during a period of not less
than seven (7) consecutive hours, including the
interval from midnight to six o’clock in the morning,
to be determined by the Secretary of Labor and
Employment
 Exceptions: those employed
◦ Agriculture
◦ Stock raising
◦ Fishing, maritime transport and inland navigation,
 Right to free health assessment during the
following periods: [Article 155]
1. before taking up an assignment as a night
worker
2. at regular intervals
3. if they experience health problems during
such assignment which are not caused by
factors other than the performance of night
work.
◦ With the exception of a finding of unfitness for night
work, the findings of such assessments shall not be
transmitted to others without the workers’ consent
and shall not be used to their detriment.
 Right to be transferred to a similar job which they
are fit to work, whenever practicable, if found unfit
for night work due to health reasons [Article 157].
 If night work is not practicable for the workers
concerned, they shall be granted the same benefits
as other workers who are unable to work, or to
secure employment during such period.
 A night worker certified as temporarily unfit for
night work enjoys same protection against
dismissal or notice of dismissal as other workers
who are prevented from working for reasons
of health.
 Right to employer-provided facilities
[Article 156]. Employers are required to
provide the following, subject to exceptions
as may be provided by the DOLE.
1. suitable first-aid facilities
2. safe and healthy working conditions
3. sleeping or resting quarters in the
establishment
4. transportation from the work premises to the
nearest point of their residence
 Right of pregnant women to alternatives to night
work during the following periods: [Article 158]
◦ before and after child birth for at least 16weeks, to be
divided between the time before and after child birth
◦ for additional periods, requiring a medical certificate
stating that said additional periods are necessary for the
health of the mother or child:
 during pregnancy
 during a specified time beyond the period, after
childbirth as allowed above, to be determined by
DOLE.
 Alternatives:
◦ Transfer to day work where possible
◦ Provision of social security benefits or
◦ Extension of maternity leave.
 Right of pregnant women to alternatives to
night work during the following periods:
[Article 158], cont.
◦ Nothing in RA 10151 shall have the effect of reducing
the protection and benefits connected with maternity
leave under existing laws.
 Right of pregnant women against dismissals
and diminution of benefits on account of
pregnancy, child birth, and child care
responsibilities [Article 158]
 A woman worker shall not lose the benefits
regarding her status, seniority, and access to
promotion which may attach to her regular
night work position.
 Pregnant women and nursing mothers may he
allowed to work at night:
◦ if a competent physician, other than the company
physician, shall certify their fitness to render night
work, and specify, in the case of pregnant
employees, the period of the pregnancy that they
can safely work.
 Right to be regularly consulted on the
following: [Article 161]:
◦ schedules and the forms of organization of night work
that are best adapted to the establishment and its
personnel
◦ the occupational health measures and social services

 The employer is required to consult on a

regular basis the workers’
representatives/labor organizations concerned,
before introducing work schedules requiring
the services of night workers.
 Imposable penalties
 Any violation of R.A. 10151 and its Implementing
Rules and Regulations shall be punished with a
fine of not less than Thirty Thousand Pesos
(PhP30,000) nor more than Fifty Thousand Pesos
(PhP50,000) or imprisonment of not less than six
(6) months, or both, at the discretion of the
court. If the offense is committed by a
corporation, trust, firm, partnership or
association, or other entity, the penalty shall be
imposed upon the guilty officer or officers of
such corporation, trust, firm, partnership or
association, or entity.
 Coverage, Rule XII, Sec. I


 Night Work/Exception, ILO Convention 89 (1948); RA No. 10151 repealed Arts. 130-131; 154, 158


 Prohibited Acts
 Discrimination, ILO Conventions 100 (1951) and 111 (1958); CEDAW Art. 11; Art. 135; RA No. 9710, Secs. 2, par. 2 & 12
 Stipulation Against Marriage, Art. 136
◦ Phil. Telegraph and Telephone Co. v. NLRC, supra
◦ Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc., 438 SCRA 343 (2004)
 Discharge to Prevent Employment of Benefits, Art. 137 (1)
 Discharge on Account of Pregnancy or Fear of Getting Pregnant, Art. 137 (2), (3)
 Discharge on Account of Testimony, Rule XII, Sec. 13 (d)
 Expulsion of Women Faculty Due to Pregnancy Outside of Marriage, RA No. 9710, Sec. 13 (c)
 Facilities and Safe Working Conditions, Art. 132; Rule XII, Sec. 14; RA 9710, Sec. 22 (b) & Impl. Rules of RA 9710, Secs. 18 A9 (b), 25 A2 & 3
 Family Planning Services, 134; Rule XII, Sec. 11; RA 9710, Secs. 17, 22 (b); Impl. Rule of RA 9710, Secs. 20 A3, 25 A3
 Special Women Workers, 138; Rule XII, Sec. 4


 Leaves and other Benefits



 1) Maternity Leave, Social Security Law of 1997 (RA 1161, as

 amended by RA 8282), Sec. 14-A, RA 828


 2) Victim Leave, RA 9262, Secs. 3, 43; Impl. Rules, Rule VI, Sec. 42; RA 9710, Secs. 4 (k), 17 (a) 8)


 3) Special Leave Benefits (for Gynecological Disorders), RA 9710, Sec. 18; Impl. Rules, Rule II, Sec. 7 T & Rule IV, Sec. 21; DO 112A, Series of 2012 (amending DO 112-
11)


 Sexual Harassment (RA 7877)



 Philippine Aelous Automotive United Corp. v. NLRC, 331SCRA 237 (2000)

 Domingo v. Rayala, 546 SCRA 90 (2008)

 Working Conditions for Special Group of Workers


 Women


 References: Arts. 130-138; Omnibus Rules, Book III, Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 & XIII, Sec. 14; Women in Development and Nation Building Act (RA 7192);
Anti-Sexual Harassment Act of 1995 (RA 7877); Anti-Violence Against Women and Their Children Act of 2004 (RA 9262); The Magna Carta of Women (RA 9710)


 Reflection Paper/Guide Questions: Do the provisions on the Employment of Women Engender Equality? What amendments would you propose to make them gender-fair and
gender-friendly?


 Equality: Formal Equality vs. Substantive Equality



 Readings:


 Bartlett, Katharine, Gender Law, in Duke Journal of Gender Law and Policy (1994)
 Formal Equality and Substantive Equality in the Textbook on Gender and the Law by Angela Harris
 Baldoz, Rosalinda, Job discrimination against women in the work environment: the Philippine setting, PLR, Vol. 24, No. 1 (2000).


 Women under the Constitution, Art. II, Sec. 14; Art XIII, Sec 14


 Philippine Association of Service Exporters v. Drilon, 163 SCRA 386 (1988)

 Phil. Telegraph and Telephone Co. v. NLRC, 272 SCRA 596 (1997)


 Coverage, Rule XII, Sec. I



 Night Work/Exception, ILO Convention 89 (1948); RA No. 10151 repealed Arts. 130-131; 154, 158


 Prohibited Acts


 Discrimination, ILO Conventions 100 (1951) and 111 (1958); CEDAW Art. 11; Art. 135; RA No. 9710, Secs. 2, par. 2 & 12


 Stipulation Against Marriage, Art. 136



 Phil. Telegraph and Telephone Co. v. NLRC, supra

 Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc., 438 SCRA 343 (2004)


 Discharge to Prevent Employment of Benefits, Art. 137 (1)

 Discharge on Account of Pregnancy or Fear of Getting Pregnant, Art. 137 (2), (3)


 Discharge on Account of Testimony, Rule XII, Sec. 13 (d)

 References: Arts. 280-281, Book VI, Rule 1, Secs. 1, 5, 6
 Coverage, Art. 278
 Employer Recognition: Pangilinan v. General Milling Corporation, 434 SCRA 159 (2004)


 Employer Determination/Designation:
◦ Violeta v. NLRC, 280 SCRA 520 (1997)
◦ San Miguel Corporation v. NLRC, 297 SCRA 277 (1998)


 Kinds of Employee
 a. Regular Employees, Art. 280, 1st par.; 280, 2nd par.; 281, last sentence; 75(d); Omnibus Rules, Book VI, Rule 1, Secs. 5(a), (b) and 6.


 1) Definition


 Pangilinan v. General Milling Corporation, supra



 2) Nature of Work


 Hacienda Fatima v. National Federation of Sugarcane Workers Food and General Trade, 396 SCRA 518 (2003)
 Romares v. NLRC, 294 SCRA 411 (1998)


 3) Extended Period


 Audion Electric co., Inc. v. NLRC, 308 SCRA 340 (1999)



 4) Repeated Renewal of Contract



 Maraguinot v. NLRC, 284 SCRA 539 (1998)



 Project Employee, Art. 280, 1st par.; Policy Instruction No. 20 (1977); DOLE D.O. No. 19 (1993)


 1) Definition


 Hanjin Heavy Industries & Construction Co. v, Ibañez, 329 SCRA 357 (2000)


 2) Project Employees


 Villa v. NLRC, 284 SCRA 105 (1998)

 Hanjin Heavy Industries & construction v. Ibanez, 555 SCRA 537 (2008)
 William Uy Construction Corp. v. Trinidad, 615 SCRA 180 (2010)
 Macarthur Malicdem and Hermenigildo Flores v. Marulas Industrial Corporation and Mike Mancilla, G.R. No. 204406, February 26, 2014
 Defined: The constitutional right granted the
employee that the employer shall not
terminate the services of an employee except
for JUST CAUSE, or when AUTHORIZED BY
LAW.
 It extends to regular (rank and file,
managerial) as well as non-regular
employment (probationary, seasonal, project)
 Applies as protection from unwarranted and
unconsented demotion and transfer
 Article 294 (280)
◦ Regular
◦ Casual
◦ Project
◦ Seasonal
 Other forms
◦ Fixed Period
◦ Probationary
 Employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer;
 One year of service has been rendered,
whether continuous or broken, with respect
to the activity in which he is employed;

Employee must be allowed to work after probationary

period in both instances.
 Nature of Work Test – Whether or not there is
reasonable connection between the particular
activity performed by the employee in relation
to the usual business or trade of the
employer
 Period of Service Test – Employee’s length of
service is at least one year, whether
continuous or broken
 Probationary Employee Test – Whether or not
the employee is allowed to work after the
lapse of the probationary period.
 ABS-CBN vs. Marlyn Nazareno (26 Sept. 2006)
 Fabela vs. SMC, (Feb. 28, 2007)
 De Leon vs NLRC, (176 SCRA 615)
 Hacienda Fatima, (Jan. 28., 2003)
 Employer Recognition: Pangilinan v. General Milling Corporation,
434 SCRA 159 (2004)
 Employer Determination/Designation:
◦ Violeta v. NLRC, 280 SCRA 520 (1997)
◦ San Miguel Corporation v. NLRC, 297 SCRA 277 (1998)
 Hacienda Fatima v. National Federation of Sugarcane Workers
Food and General Trade, 396 SCRA 518 (2003)
 Romares v. NLRC, 294 SCRA 411 (1998)
 Audion Electric co., Inc. v. NLRC, 308 SCRA 340 (1999) –
extended period
 Maraguinot v. NLRC, 284 SCRA 539 (1998) – repeated renewal
 ABS-CBN vs. Marlyn Nazareno (26 Sept. 2006)
 Fabela vs. SMC, (Feb. 28, 2007)
 De Leon vs NLRC, (176 SCRA 615)
 Hacienda Fatima, (Jan. 28., 2003)
 Employer Recognition: Pangilinan v. General Milling Corporation, 434 SCRA 159 (2004)


 Employer Determination/Designation:
◦ Violeta v. NLRC, 280 SCRA 520 (1997)
◦ San Miguel Corporation v. NLRC, 297 SCRA 277 (1998)


 Kinds of Employee
 a. Regular Employees, Art. 280, 1st par.; 280, 2nd par.; 281, last sentence; 75(d); Omnibus Rules, Book VI, Rule 1, Secs. 5(a), (b) and 6.


 1) Definition


 Pangilinan v. General Milling Corporation, supra



 2) Nature of Work


 Hacienda Fatima v. National Federation of Sugarcane Workers Food and General Trade, 396 SCRA 518 (2003)
 Romares v. NLRC, 294 SCRA 411 (1998)


 3) Extended Period


 Audion Electric co., Inc. v. NLRC, 308 SCRA 340 (1999)



 4) Repeated Renewal of Contract



 Maraguinot v. NLRC, 284 SCRA 539 (1998)

 Employee has been engaged to perform
activities which are NOT necessary or
desirable in the usual trade or business of the
employer
 Once a casual employee has rendered at least
one year of service, his status becomes
REGULAR; no appointment or declaration
necessary
The purpose of this rule is to honor the
constitutional guarantee of security of tenure and
right to self-organization
 Conti vs. NLRC
 Baguio Country Club vs. NLRC
 Employee has been engaged for a SPECIFIC
project or undertaking
 the completion or termination of the project has
been determined at the time of engagement of
the employee
 REGULAR STATUS vested when
◦ Continuous re-hiring of project employees even after the
cessation of a project for the same tasks or nature of
tasks (Tomas Lao Const. vs. NLRC, 276 SCRA)
◦ Tasks performed by project employee are vital,
necessary and indispensable to the usual business or
trade of the employer
 Exodus International Construction Corporation, et al.
v. Guillermo Biscocho, et al., G.R. No. 166109, Feb.
2011:
◦ Two types of employees in the construction industry:
 Project employees or those employed in connection with a
particular construction project or phase thereof and such
employment is coterminous with each project or phase of the
project to which they are assigned.
 Non-project employees or those employed without reference to
any particular construction project or phase of a project; when
one project is completed, employees are automatically
transferred to the next project awarded to employer. There was
no employment agreement given employees which clearly
spelled out the duration of their employment and the specific
work to be performed and there is no proof that they were made
aware of these terms and conditions of their employment at the
time of hiring.
 No dismissal before completion of project,
except for just or authorized cause;
 Must comply with procedural requirements;
 No need for notice of termination upon the
expiration of project period;
 Prior to dismissal, report must be made to
the nearest employment office of the
termination of services every time project is
completed.
 Employment is for a pre-determined period
established at the time of engagement (Read
St. Theresa’s School of Novaliches vs. NLRC,
289 SCRA 110)
 Employee’s duties are usually necessary and
desirable to the usual business or trade of the
employer
1. fixed period of employment was knowingly and
voluntarily agreed upon by the parties without
any force, duress, or improper pressure being
brought to bear upon the employee and absent
any other circumstances vitiating his consent;
or
2. It satisfactorily appears that the employer and
the employee dealt with each other on more or
less equal terms with no moral dominance
exercised by the former or the latter. (Lynvil
Fishing Enterprises, Inc. vs. Andres G. Ariola, et
al., G.R. No. 181974, Feb. 2012)
 Employer required to inform the probationary
employee of such reasonable standards at the time of
his engagement, not at any time later; else, the latter
shall be considered a regular employee. (Section 6,
Implementing Rules of Book VI, Rule VIII-A, Labor
Code)
 Purpose:
◦ Employer observes the fitness, propriety and efficiency of a
probationer to ascertain whether he is qualified for
permanent employment,
◦ Employee seeks to prove he has the qualifications to meet
the reasonable standards for permanent employment.
 Length of time the probation depends on the parties’
agreement, but not to exceed six (6) months under
Article 295 (281) of the Labor Code.
 Cases
◦ Canadian Opportunities Unlimited, Inc. vs. Bart Q.
Dalangin, Jr., G.R. No. 172223, February 6, 2012.
◦ Armando Ailing vs. Jose B. Feliciano, Manuel F. San
Mateo III, et al., G.R. No. 185829. April 25, 2012.
 Work or service is seasonal in nature and the
employment is for the season’s duration
 Considered as regular if re-engaged after one
season
 Seasonal employees not laid off during the
end of season, simply on leave w/o pay until
re-employment
 Relationship is only suspended, not severed
 Work or service is seasonal in nature and the
employment is for the season’s duration
 Considered as regular if re-engaged after one
season
 Seasonal employees not laid off during the
end of season, simply on leave w/o pay until
re-employment
 Relationship is only suspended, not severed
 Our laws recognize and respect the exercise by
management of certain rights and prerogatives. For this
reason, courts often decline to interfere in legitimate
business decisions of employers. In fact, labor laws
discourage interference in employers’ judgment
concerning the conduct of their business. (Philippine
Industrial Security Agency Corporation vs. Aguinaldo, G. R.
No. 149974, June 15, 2005; Mendoza vs. Rural Bank of
Lucban, G.R. No. 155421, July 7, 2004).
 An employer can regulate, generally without restraint,
according to its own discretion and judgment, every aspect
of its business. (Deles, Jr. vs. NLRC, G. R. No. 121348,
March 9, 2000).
 This privilege is inherent in the right of employers to
control and manage their enterprise effectively. (Mendoza
vs. Rural Bank of Lucban, G.R. No. 155421, 07 July 2004).
 regulate and control all aspects of employment in
their business organizations. Such aspects of
employment include hiring, work assignments,
working methods, time, place and manner of work,
tools to be used, processes to be followed,
supervision of workers, working regulations, transfer
of employees, work supervision, lay-off of workers
and the discipline, dismissal and recall of workers.
(Philippine Airlines, Inc. vs. NLRC, G. R. No. 115785,
Aug. 4, 2000).
 Management retains the prerogative … to change the
working hours of its employees. (Sime Darby
Pilipinas, Inc. vs. NLRC, G.R. No. 119205, 15 April
1998, 289 SCRA 86).
 A transfer means a movement (1) from one position
to another of equivalent rank, level or salary, without
a break in the service; or (2) from one office to
another within the same business establishment.
(Sentinel Security Agency, Inc. vs. NLRC, G. R. No.
122468, Sept. 3, 1998).
 Prerogative of management to transfer an employee
from one office to another within the business
establishment upheld, provided
1. There is no demotion in rank or diminution of salary,
benefits, and other privileges, and;
2. Action is not motivated by discrimination, made in bad
faith, or effected as a form of punishment or demotion
without sufficient cause. (Mendoza vs. Rural Bank of
Lucban, G. R. No. 155421, July 7, 2004; Benguet Electric
Cooperative vs. Fianza, G. R. No. 158606, March 9, 2004).
1. Must be exercised without grave abuse of
discretion
2. Basic elements of justice and fair play adhered
to.
3. Employer must be able to show that the
transfer is not unreasonable, inconvenient or
prejudicial to the employee, otherwise, the
employee’s transfer is tantamount to
constructive dismissal. (The Philippine
American Life and General Insurance Co. vs.
Gramaje, G. R. No. 156963, Nov. 11, 2004;
Globe Telecom, Inc. vs. Florendo-Flores, G. R.
No. 150092, Sept. 27, 2002).
 William Endeliseo Barroga vs. Data Center College
of the Philippines, et al., G.R. No. 174158, June
2011
◦ Constructive dismissal is quitting because continued
employment is rendered impossible, unreasonable or
unlikely, or because of a demotion in rank or a
diminution of pay. It exists when there is a clear act of
discrimination, insensibility or disdain by an employer
which becomes unbearable for the employee to continue
his employment.
◦ It is management prerogative for employers to transfer
employees on just and valid grounds such as genuine
business necessity, e.g. financial constraints
 An employee has a right to security of tenure,
but this does not give her such a vested right
in a position as would deprive the employer
of its prerogative to change employee
assignments or transfers where the
employee’s service will be most beneficial to
the employer’s client.
 Cases
◦ OSS Security & Allied Services, Inc., vs. NLRC, G. R.
No. 112752, Feb. 9, 2000
◦ Tan vs. NLRC, 299 SCRA 169, 180 [1998]
◦ Chu vs. NLRC, G. R. No. 106107, June 2, 1994
 Transfer directed by employer under
questionable circumstances
◦ Transfer ordered during height of union activities
◦ Used as a subterfuge to get rid of an undesirable
employee
◦ Transfer is patently whimsical or vindictive
 Cases
◦ Union activities - Yuko Chemical Industries vs.
Ministry of Labor & Employment (GR No. 75656,
May 28, 1990)
◦ No notice of transfer as condition for training -
Zafra vs. Court of Appeals (GR No. 139013,
September 17, 2002)
◦ Whimsical or vindictive transfer - Damasco vs. NLRC
(GR No. 115755, December 4, 2000)
 In general, transfers not characterized by
grave abuse of discretion or bad faith are all
valid. The worker cannot refuse for any of
the following grounds:
◦ Additional expense and travel time (Genuino Ice
Company vs. Magpantay, GR No. 147790, June 27,
2006)
◦ Parental obligations (Tinio vs. CA, GR No. 171764,
2007)
◦ Anxiety
◦ “Home” base (PT&T Corp. vs. Laplana, GR No.
76645, July 23, 1991)
 Those directed
◦ By contractual stipulation (Abbott Labs vs. NLRC, GR
No. 76959, Oct. 12, 1987)
◦ Standard Operating Procedure
◦ Company Policy
◦ Order of the Government (Bisig Manggagawa ng.
Tryco vs. NLRC, GR No. 151309, Oct. 15, 2008)
◦ Guidelines of Government Organs (BSP Circular
mandating rotation of bank employees
 To avoid conflict of interest (Duncan
Association of Detailman – PTGWO vs. Glaxo
Wellcome Phils., GR No.162994, September
17, 2004)
 By reason of abolition of position (Beneco vs.
Fianza, 158606, March 9, 2004)
 Advancement from one position to another,
involving an increase in duties and
responsibilities authorized by law AND
increase in compensation and benefits.
 Mere increase in salary should not be
determinative of promotion, as the increase is
merely incidental.
 Promotion involves a scalar ascent in rank or
position
 Transfer involves lateral movement to the
same rank and salary
 A promotion can be refused, and it will not
result in punishment
 A transfer directed in good faith and in the
exercise of management prerogative cannot
be refused without pain of sanction
 A promotion that results from a transfer
requires the consent of the employee
 Agabon vs. NLRC (GR No. 158693, Nov. 27,
2004)
◦ Constitutional due process protects the individual
against the government
◦ Statutory due process protects the worker from
unjust termination of employment except for just
cause after notice and hearing
 Substantive Due Process: Valid Causes
◦ Just Cause
◦ Authorized by Law
 Procedural Due Process:
◦ Written notice of the charge/s
◦ Opportunity to be heard
 Hearing
 Conference
◦ Written notice of termination
 Skippers United Pacific, Inc. and Skippers Maritime
Services, Inc. Ltd. vs. Nathaniel Doza, et al. (GR No.
175558, Feb. 2012)
◦ Substantive due process - Legality of the act of dismissal.
◦ Procedural due process - Legality of the manner of
dismissal. consists of twin requirements: notice and
hearing.
◦ Employer must furnish employee with two written notices
before termination of employment:
 1st notice apprises the employee of the particular acts or
omissions for which his dismissal is sought;
 2nd notice informs the employee of the employer’s decision to
dismiss him.
 Before issuance of second notice, a hearing must be complied
with by giving the worker an opportunity to be heard.
 Substantive due process requires that
dismissal by the employer be made based on
a just or authorized cause under Articles 282
(296) to 284 (298) of the Labor Code.
 Notice issued prior to commission of offense does
not satisfy requirement (Janssen Pharmaceutica vs.
Silayro, GR 172528, Feb. 26, 2008)
 Service of notice is a mandatory requirement
 Notice must be in writing (no form necessary)
◦ Must not only state the policy violated, but the
corresponding penalty of dismissal imposable thereon
(Cruz vs. Coca-Cola, GR No. 165586)
◦ Must state that dismissal is sought
◦ Charges stated in general terms invalid
 Employee must be dismissed on same grounds stated
in first notice
 Changing of ground for dismissal indicates lack of
basis
 Warning letters (Skippers United Pacific vs.
Maguad, GR No. 166363, August 15, 2006)
 Affidavit narrating incident (Asian Terminals
vs. Marbella, GR No. 149074, August 10,
2006)
 First notice pertains to a different incident
from the offense for which employee is
dismissed (Wah Yuen Restaurant vs. Jayona,
GR No. 159448, Dec. 16, 2005)
 Employee’s admission
 Termination due to abandonment
 Employer has burden of proof in showing
dismissal was not illegal (Limketkai Sons
Milling vs. Llamera, GR No. 152514, July 12,
2005)
 Substantial proof, not clear and convincing
evidence.
Substantial Evidence Clear and Convincing Evidence
That amount of relevant A medium level of burden of
evidence which a reasonable proof which is a more rigorous
mind might accept as adequate standard to meet than the
to justify a conclusion preponderance of evidence
standard, but less than proof
beyond reasonable doubt.
 Lynvil Fishing Enterprises v. Andres Ariola, et
al., GR No. 181974, February 1, 2012
 Armando Ailing vs. Jose Feliciano, Manuel F.
San Mateo III, et al., GR No. 185829, April 25,
2012
 L. Employee Classification, Art. 280-281, Book VI, Rule


 References: Arts. 280-281, Book VI, Rule 1, Secs. 1, 5, 6



 Coverage, Art. 278



 Employer Recognition


 Pangilinan v. General Milling Corporation, 434 SCRA 159 (2004)



 Employer Determination/Designation


 Violeta v. NLRC, 280 SCRA 520 (1997)

 San Miguel Corporation v. NLRC, 297 SCRA 277 (1998)


 Kinds of Employee


 a. Regular Employees, Art. 280, 1st par.; 280, 2nd par.; 281, last sentence; 75(d); Omnibus Rules, Book VI, Rule 1, Secs. 5(a), (b) and 6.


 1) Definition


 Pangilinan v. General Milling Corporation, supra



 2) Nature of Work


 Hacienda Fatima v. National Federation of Sugarcane Workers Food and General Trade, 396 SCRA 518 (2003)
 Romares v. NLRC, 294 SCRA 411 (1998)


 3) Extended Period


 Audion Electric co., Inc. v. NLRC, 308 SCRA 340 (1999)



 4) Repeated Renewal of Contract



 Maraguinot v. NLRC, 284 SCRA 539 (1998)



 Project Employee, Art. 280, 1st par.; Policy Instruction No. 20 (1977); DOLE D.O. No. 19 (1993)


 1) Definition