LABOR STANDARDS

REVIEWER

I. PRELIMINARY PROVISIONS

ART 2: Takes effect six months after its Social legislation

promulgation (May 1, 1974 – Nov 1, 1974) – laws that provide particular kinds of protection
or benefits to society or segments thereof in
Labor legislation furtherance of social justice ( labor laws are social
– consists of statutes, regulations and legislation but not all social legislations are labor
jurisprudence governing the relations between laws)
capital and labor, by proving for certain
employment standards and a legal framework for  Aim of labor law is social justice ( salus populi
negotiating, adjusting and administering those est suprema lex)
standards and other incidents of employment
 Social justice as a juridical principle prescribes
Labor standards equality of the people before the law and as a
– terms and conditions of employment that goal means attainment of decent quality of
employers must comply with and to which life of the masses through human productive
employers are entitled as a matter of legal right efforts (police power as the basis)
i.e. wages
Labor Code (PD No 442, as amended)
Labor relations – set of substantive and procedural laws that
– defines the status, rights and duties, and the prescribe the principal rights and responsibilities
institutional mechanisms that govern the of the industrial participants so as to institute
individual and collective interactions of social justice; lays down the fundamental rights
employers, employees or their representatives i.e. and correlative obligations of employers and
issues about employment tenure and termination employees

Employee As a branch of Civil Law, labor law does not

– salaried person working for another who conflict with provision of civil code on human
controls or supervises the means, manner or relations and on RPC
method of doing work
Art 19:
Labor Every person must in the exercise of his rights and
in the performance of his duties, act with justice,
– work and work relationship referring to any
give everyone his due, and observe honesty and
economically productive application of physicial, good faith
mental and material resources
Art 20:
Work Every person who contrary to law, willfully or
– covers all forms of physical or mental exertion, negligently causes damage to another, shall
or both combined for the attainment of some compensate the latter for the same
object other than recreation or amusement per se
Art 21:
Any person who willfully causes loss or injury to
another in a manner that is contrary to morals,
good customs or public policy shall compensate
the latter for damage

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Art 298 for use of violence of threats on employer 2. Right to prescribe rules
or employee 3. Right to select employees
4. Right to transfer or discharge employees
 Philippines as member of the International
Labor Organization
- All ILO members to respect and promote its ART 5: Rules and Regulations
fundamental rights even if they have not - DOLE to promulgate necessary IRRs and shall
ratified the conventions become effective 15 days after announcement of
- ILO as UN specialized agency which seeks their adoption in newspapers of general
the promotion of social justice and circulation
internationally recognized human and labor
rights
ART 6: Applicability
1. GOCCs with original charter – corporations
ART 3: Declaration of Basic Policy chartered by special law from Congress
(CSC)
1. Protection to labor 2. GOCCs – organized under Corporation Code
2. Full employment (Labor Code)
3. Ensure equal work opportunities 3. Applies even if parties are not employers
4. Regulation relations of workers and and employees of each other i.e. illegal
employers recruitment issues
5. Assure rights of workers to self-organization,
collective bargaining, security of tenure and
just and humane conditions of work ART 12: Statement of Objectives
1. Full employment
ART 4: Construction in favor of Labor 2. Protection
- All doubts in the implementation and 3. Free choice of available employment
interpretation of the provisions of the Code, 4. Facilitate and regulate the movement of
including its IRR, shall be resolved in favor of workers
labor 5. Regulate employment of aliens, including
establishment of registration/ work permit
Rights of workers granted by the Constitution system
1. Self-organization 6. Strengthen network of public employment
2. Collective bargaining or negotiation with offices and rationalize the participation of
management the private sector in the recruitment
3. Engage in peaceful concerted activities, 7. Careful selection of Filipino workers for
including to strike in accordance with law overseas employment
4. Enjoy security of tenure
5. Work under human conditions
6. Receive a living wage
7. Participate in policy and decision making
processes affecting their rights and benefits as
may be provided by law

Rights of employers – Management rights

restricted by law, contract, and general principles
of fair play and justice
1. Right to Return of Investment

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engage in recruitment and placement

activities as private recruitment entity

7. Seaman
– person employed in a vessel engaged in
maritime navigation
II. RECRUITMENT AND
PLACEMENT OF WORKERS
8. Overseas employment
– employment of worker outside the
1. Worker Philippines
– any member of the labor force, whether
employed or not 9. Emigrant
– who emigrates to foreign country by virtue
2. Recruitment and placement of an immigrant visa or resident permit or its
– canvassing, enlisting, contracting, equivalent in the country of destination
transporting, utilizing, hiring, or procuring
workers and includes referrals, contract
services, promising or advertising for ART 16: Private Recruitment
employment , locally or abroad, whether for  No person or entity other than the public
profit or not: Provided, that any person or employment offices shall engage in the
entity which, in any manner, offers or recruitment and placement of workers,
promises for a fee employment to two or except as provided in Chapter II
more persons shall be deemed engaged in
recruitment and placement Those allowed:
1. Public employment offices
3. Private Fee-Charging Employment Agency 2. Private employment agencies
– any person or entity engaged in the 3. Shipping or manning agents or
recruitment and placement of workers for a representatives
fee which is charged, directly or indirectly, 4. POEA
from the workers or employers or both 5. Construction contractors if authorized to
operate by DOLE and the Construction
4. License Industry Authority
– any document issued by the department 6. Members of the diplomatic corps although
authorizing a person/ entity to operate a hirings done by them have to be processed
private employment agency through the POEA
7. Other persons or entities as may be
5. Private recruitment entity authorized by DOLE
– any person or association engaged in the
recruitment and placement of workers,
locally or overseas, without charging, Art 17: Overseas Employment Development
directly or indirectly, any fee from the Board
workers or employers * Now called POEA thru RA 8042 (MWOFA)

6. Authority Selective Deployment – receiving country must

– document issued by the department comply:
authorizing a person or association to

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1. Existing labor and social laws protecting 3. Commission of a felony punishable by Phils or
the rights of workers, including migrant host country
workers 4. Possession or use of prohibited drugs
2. Signatory to and/or ratifies of multilateral 5. Embezzlement of company funds or of
conventions, declarations or resolutions moneys and properties of a fellow worker
relating to the protection of workers, entrusted for delivery to kins or relatives in
including migrant workers the Phils
3. Has concluded bilateral agreement or 6. Unjust refusal to depart for the worksite after
arrangement with the government on the all employment and travel documents have
protection of the rights of overseas Filipino been duly approved by the appropriate
workers; provided, that the receiving government agencies
country is taking positive, concrete 7. Violation of the laws and cultural practices of
measure to protect the rights of migrant the host country
workers in furtherance of any of the
guarantees above cited ART 33: Reports on Employment Status
 Secretary of Labor may direct all persons and
 DFA to issue certification to POEA and the entities within its scope to submit report on
latter’s governing board liable for allowing statuses of employment i.e. job vacancies
deployment lacking the requisites
ART 34: Prohibited Practices
 POEA’s functions:
a) Formulation, implementation and 1. Overcharging –charge or accept directly or
monitoring of policies and programs on indirectly any amount or to make a worker
overseas employment of Filipino pay the agency or its representatives any
workers amount greater than that actually loaned or
b) Deployment of Filipino workers through advanced to them
government-to-government hiring
c) Administrative, regulatory and 2. False Notice – furnish or publish any false
enforcement, and adjudicatory functions notice or information in relation to
recruitment or employment
 NLRC – cases regarding employer-employee
relationship i.e. money claims; allowing
reimbursement of his placement fee with 3. Misrepresentation to Secure License – give
interest plus his salary for: any false notice or document or commit any
a) Unexpired portion of the act of misrepresentation for the purpose of
employment contract securing a license or authority
b) Three months for every of the
unexpired term, whichever is less 4. Inducing Worker to Quit – induce or attempt
to induce a worker already employed to quit
 POEA – administrative and disciplinary in his employment in order to offer him another,
action i.e. licensing, appealable to Secretary UNLESS the transfer is designed to liberate a
of Labor (if not NLRC or CA) worker rom oppressive terms and conditions
of employment
Grounds:
1. Submission of false information or documents
2. Unjustified refusal to continue his/her 5. Inducement Not to Employ – to influence or
application after signing an employment attempt to influence any person or entity not
contract

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to employ any worker who has not applied for 4. Charging fee before employment is obtained
employment through his agency 5. Charging fee exceeding the allowable rate
6. Obstructing inspections
6. Recruitment for Harmful Jobs – to engage in
the recruitment or placement of workers in Who are Liable:
1. Recruitment agency
jobs harmful to public health or morality or
the dignity of the state - solidarily liable with principal, despite
agency agreement is severed
7. Obstructing Inspection – obstruct or attempt
to obstruct inspection by the Secretary or by - extends up to the expiration of the
employment contracts; obligations in
his/ her duly authorized representatives
recruitment agreement entered into by
and between the local agent and its
8. Contract Substitution – substitute or alter to
prejudice of the worker, employment foreign principal not coterminous with
term of such agreement
contract prescribed by DOLE form the time of
actual signing thereof by the parties up to and - solidarily liable even if it was the agency’s
principal who entered into contract with
including the period of the expiration of the
same without the approval of the Department the worker since the former is the
manning agent
Exception: Workers clearly waived their right
9. Failure to File Reports – failed to file reports
on status of employment as required by DOLE - Imputed knowledge states that
knowledge of the agent is knowledge of
10. Engagement in Travel Agency – to become an the principal
officer or member of the Board of any - Even if death of the worker not
corporation engaged in travel agency or be attributable to the recruitment agency’s
engaged directly or indirectly in such principal and not work-related, the non-
management chalant and uncaring attitude of the of
agency is ground for claim of moral and
exemplary damages
11. Withholding or Denying Documents – to
2. Corporate directors
withhold or deny travel documents from
- Not automatic; proof of remiss in directing
applicant workers before departure for
the affairs of the company, such as
monetary or financial considerations other
sponsoring or tolerating the conduct of
than those authorized by law and its
illegal activities
implementing rules and regulations
3. Foreign corporations
-If hires Filipino workers through unlicensed
ART 35: Suspension and/or Cancellation of agents
License or Authority

* Concurrent jurisdiction of DOLE Secretary and ART 36: Regulatory Power

POEA Administrator - Power to restrict and regulate the recruitment
* Grounds for imposition of administrative and placement activities of all agencies covered
sanctions: and to issue orders and promulgate rules and
regulations
1. Misrepresentation to secure or renew license
2. False testimonies or falsified documents ART 37: Visitorial Power
3. Recruitment for harmful jobs

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- Inspect premises, books of accounts and e. Failure to Deploy – failure to deploy a

record and submit reports regularly contracted worker without valid reason

f.Failure to Reimburse – fail to reimburse

expenses incurred by the worker in
connection with his/her documentation and
ART 38: Illegal Recruitment processing for purposes of deployment in
* Recruitment and placement – canvassing, cases where the deployment does not
enlisting, contracting, transporting, utilizing, actually take place without the worker’s fault
hiring or procuring workers, and includes
referral, contract services, promising or g. Non-Filipino Manager – allowing an alien to
advertising for employment locally or abroad, head or manage recruitment agency
whether for profit or not
h. Excessive Interest – more than 8% per annum
KINDS OF ILLEGAL RECRUITMENT: or make worker issue postdated checks for
1. WITHOUT LICENSE such loan
2. PROHIBITED ACTS DONE BY LICENSEE OR
NON-LICENSEE i. Specifying a Loan Entity – pre-determined
 Local - Nos. 1-8 (Art 34) compulsory and exclusive arrangement
 Overseas - Nos 1- 8 (Art 34), PLUS:
j. Non-renegotiation of Loan – refusing to condone
a. Misrepresentation of Document – giving false or renegotiate after employment contract has
notice or document or any misrepresentation been prematurely terminated through no
for the purpose of documenting hired fault
workers with POEA, which includes
reprocessing workers through a job order that k. Specifying a Medical Entity - pre-determined
pertains to non-existent work, work different compulsory and exclusive arrangement
from actual overseas work or work with a
different employer registered or not with l. Specifying a Training Entity - pre-determined
POEA compulsory and exclusive arrangement,
unless for recommendatory trainings
b. Non-submission of Reports – on status mandated by principals at latter’s cost
employments
m. Violation of Suspension – for a suspended
recruitment agency to engage in any kind of
c. Involvement in Travel Agency – officer or recruitment activity including the processing
agent of a recruitment or placement agency of pending worker’s applications
to become an officer or member of the Board
of any corporation engaged in travel agency n. Collection of Insurance Premium –passing on
or insurance or be engaged directly or the OFW the burden or deducting from his
indirectly in such management salary as provided under the compulsory
worker’s insurance coverage
d. Withholding of Documents – withhold or
deny travel documents from applicant
workers before departure for monetary or 3. ILLEGAL RECRUITMENT AS ECONOMIC
financial considerations, or for any unlawful SABOTAGE (separate and independent
other reasons categories)

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a. by a syndicate – carried out by three or termination, report supported by affidavit be

more persons conspiring submitted to D-LRO or DOLE regional director
b. in large scale – committed against three d. Secretary or Administrator or DOLE RD may
or more persons individually or as a conduct ex parte preliminary examination
group e. After PE or surveillance, Secretary or Admin
or DOLE RD to issue closure order
f. Closure be done by sealing and padlocking the
 As a criminal offense, it presupposes deceit establishment and posting a notice of such
whereby a distinct impression had been had closure
by the victim that the culprit had the power g. Motion to lift CO may be entered when it is
or ability to send them abroad for work, such verified and filed by person or entity against
that the latter were convinced to part with whom such order was issued with LRO or
their money in order to be employed DOLE RD within ten days from the date of
implementation, on the ground that it is not
 A person convicted of for illegal recruitment involved in the allegations
can be convicted for Estafa h. Appeal on denial of Motion to lift CO or
Who are liable: Motion to Re-open be appealed to Secretary
1. Persons – principals, accomplices, and within 10 days from the service or receipt
accessories thereof
2. Juridical persons – officers having control and
management or direction of the business and
its responsible agents, unless the agents were ART 39: Penalties
merely acting under the direction of his  Different for local and overseas employment
superior and was unaware of the offense  Criminal action to be filed with RTC of the
3. Foreign employer – final and executory province or city where the offense was
judgement automatically disqualifies him committed or where the offended party
without further proceedings until and unless actually resides at the time of the commission
it fully satisfies the judgement award of the offense
 Preliminary investigations terminated within
 Secretary of Labor and his duly authorized 30 days from the date of their filing
representatives cannot issue search and  If conducted by prosecutor, information be
arrest warrants, but may only cause the filed in court within 24 hours from
lawful arrest under the rules of Criminal termination of investigation
Procedure  If by the judge, within 48 hours from the date
 Secretary to issue closure order since it is of receipt of the records of the case
administrative and regulatory  Illegal recruitment prescribes in five years,
while those involving economic sabotage,
prescribes in 20 years
Process for Closure Order
a. Victims to report or file complaint with DOLE
b. If prohibited acts are confirmed after
preliminary examination of the complainants
and witness or through surveillance, Director- ART 40: Employment Permit of Non-Resident
Licensing and Regulation Office (D-LRO) to Aliens
recommend to Administrator issuance of CO
c. Administrator may on his own conduct  To obtain employment permit from
surveillance and within two days from its Department:

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1. Alien seeking admission for exercise or enjoyment is reserved by

employment in the Phils law only to Filipinos or corporations or
2. Domestic or foreign employer who associations whose capital should be
desires to engage and alien for 60%
employment in the country 2. Authority to operate public utility or to
EDU natural resources granted only to
 Only after determination of the non- Filipinos or to corp with same capital
availability of a person in the Philippines requirement
who is competent, able and willing at the 3. Mass media enterprises can be owned
time of the application to perform the or managed by Filipinos or by corps
services for which the alien desired wholly owned or managed by them
4. Aliens may be employed in entities
 For enterprise registered in preferred engaged in nationalized activities
areas of investment, permit may only be where Secretary of Justice specifically
issued upon recommendation of the authorizes the employment of foreign
government agency charged with the technical personnel, and where aliens
supervision are elected members of the board of
directors or governing body of corps or
assocs in proportion to their allowable
ART 41: Prohibition against Transfer of participation in the capital of such
Employment entities
5. Enterprises under Omnibus Investment
 Alien should not transfer to another job or Code may for a limited time, employ
change his employer without prior approval foreign nationals in technical,
of the Secretary after issuance of permit supervisory or advisory positions
 Non-resident alien who shall violate the
provisions and IRRs be punished under Art
289-290 and shall be deported

ART 42: Submission of List

 Any employer employing non-resident aliens
on effective date of the Code shall submit list
of such nationals to the secretary within 30
days after such date indicating their names,
citizenship, foreign and local addresses,
nature of employment and status in their
country and determine if they are entitled to
such permit
 Resident aliens are covered by alien
employment registration certificate
 Foreigners may not be employed in certain
nationalized business
1. Anti-Dummy Law – prohibits
employment of aliens in entities that
own or control a right, franchise or
privilege, property or business whose

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ART 59: Qualifications of Apprentice (DTI may

recommend appropriate educational
requirements)
 Be at least 14 years of age
 Possess vocational aptitude and capacity
for appropriate tests
 Possess the ability to comprehend and
follow oral and written instructions

III. HUMAN RESOURCES ART 60: Employment of Apprentices

DEVELOPMENT  Employers in the highly technical
industries may employ apprentices and
only in apprenticeable occupations
DEFINITONS: approved by the Sec
 Apprenticeship (general) – arrangement
 Manpower – portion of the nation’s and the period when an upcoming
population which has actual or potential worker undergoes hands-on training,
capability to contribute directly to the more or less formal, to learn the ropes of
production of good and services a skilled job
 D.O. No 8 Series of 1989 – DOLE to
 Entrepreneurship – training for self- obtain the voluntary adoption of
employment or assisting individual or apprenticeship programs and BLE to
small industries undertake review of trades, occupations
and jobs in all economic sectors
 Apprenticeship –practical training on the  Requisites for employment of
job supplemented by related theoretical apprentices:
instruction 1. Employer engaged in a business that
is highly technical ( applies advanced
 Apprentice – worker who is covered by a technology)
written apprenticeship agreement with 2. Job is an apprenticeable occupation
an individual employer or any of the (officially endorsed by a tripartite
recognized entities body and approved for
apprenticeship by TESDA)
 Apprenticeable occupation – any trade, 3. Employment of children below 15
form of employment or occupation years of age is prohibited, except for
which requires more than 3 months of being an apprentice
practical training on the job
supplemented by related theoretical ART 61: Contents of Apprenticeship Agreement
instruction  Not to exceed six months, wage rates
below minimum legal wage allowed but
 Apprenticeship Agreement in no case shall start below 75% of the
– employment contract wherein the applicable minimum wage, and entered
employer binds himself to train the only by employer and apprentice in
apprentice and the apprentice in turn accordance with the duly approved
accepts the terms of training apprenticeship program by DOLE

ART 62: Signing of Apprenticeship Agreement

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 Signed by employer or agent 1.) Such program is recognized by DOLE

 If with minor, signed by parent or 2.) Deduction shall not exceed 10% of
guardian in behalf or by duly rep of DOLE direct labor wage
 Every agreement be ratified by the 3.) Person or enterprise who wishes to
appropriate apprenticeship committee, if avail of himself of this incentive shall
any, and a copy thereof furnished both pay his apprentices the minimum
to employer and apprentice wage

ART 63: Venue of Apprenticeship Programs ART 72: Apprentices without Compensation
 Conducted entirely by and within the  Whose training on the job is required by
sponsoring firm school or training program curriculum or
 Entirely with DOLE training center or as a requisite for graduation
other public institutions
 Initial training in trade fundamentals in a ART 73: Learners
training center or other institutions with – persons hired as trainees in semi-skilled and
subsequent actual work participation other industrial occupations which are non-
within the sponsoring firm or entity apprenticeable and which may be learned
during the final stage of training through practical training on the job in a
relatively short period of time which shall not
exceed 3 mons
Art 65: Investigation of Violation of
Apprenticeship Agreement by DOLE (interested
person or own initiative) ART 74: When Learners may be Hired
 No experienced workers are available
ART 66: Appeal to the Sec of Labor  Such employment is necessary to
– within 5 days from receipt of the decision; such prevent curtailment of employment
decision shall be final and executory opportunities
 Employment does not create unfair
competition in terms of labor costs or
Art 70: Voluntary Organization of impair or lower working standards
Apprenticeship Program; Exemptions
 Generally, a voluntary undertaking; ART 75: Learnership Agreement
except if national security and required  Names and addresses, duration within
by Pres to be compulsory and where the prescribed period, not less than 75%
services of foreign technicians are of the min wage, commitment to employ
utilized by private companies in the learners if they so desire, as regular
apprenticeable trades employees upon completion
 Learners deemed as regulars if worked
ART 71: Deduction of Training Costs for 2 months and training terminated
 Additional deduction from taxable before end of period through no fault of
income of ½ of the value of labor training the learner
expenses incurred for developing the
productivity and efficiency of apprentices Learnership Apprenticeship
shall be granted to the person or Semi-skilled job or Highly skilled jobs
enterprise organizing an apprenticeship industrial occupations hence, needs a
program that require training minimum of 6 mons
 Provided: for less than 3 months

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Committed to hire the No commitment 1. Qualified Individual with a Disability

learners since the job - an individual with a disability who, with
is relatively easy or without reasonable accommodation,
Allowed for even non- Only allowed for highly can perform essential functions of the
technical jobs technical industries employment position that such
and only in individual holds or desires
apprenticeable - subject to the same terms and
occupations approved conditions of employment as a qualified
by DOLE able-bodied person

ART 76: Learners in piecework 2. Sheltered Employment

- Learners employed in piece or incentive jobs - provision of productive work for
during the training period shall be paid in full for disabled persons through workshops
the work done providing special facilities, income-
producing projects or homework schemes
Art 78: Handicapped Workers ( not equivalent with a view to giving them the opportunity
to Low IQ) to earn a living thus enabling them to
- may be employed when their employment is acquire a working capacity required in open
necessary to prevent curtailment of employment industry
opportunities and when it does not create unfair
competition in labor costs or impair or lower
working standards Discriminatory Acts:
1. Limiting, segregating or classifying a
Art 80: Employment Agreement subject to disabled job applicant in such a manner
inspection by DOLE that adversely affects his work
1. Name and addresses of handicapped opportunity
workers
2. Rate not less than 75% of the minimum 2. Using qualification standards,
wage employment test or other selection
3. Duration of employment period criteria that screen out or tend to screen
4. Work to be performed out a disabled person unless such
standards, test or other selection criteria
 Magna Carta for Disabled Person prevails over are shown to be job-related for the
the agreement position in question and are consistent
with business necessity
Art 81: Eligibility for Apprenticeship in lieu of
Magna Carta Sec 7 3. Utilizing standards, criteria or methods
- disabled persons are qualified for of administration that:
apprenticeship: a. Have the effect of
a. Their handicap is not much to as to discrimination on the basis
effectively impede the performance of of disability
job operations in the particular b. Perpetuate the
occupation for which they are hired discrimination of others who
b. After the lapse of the period of are subject to common
apprenticeship, if found satisfactory in administrative control
the job performance, they shall be
eligible for employment 4. Providing less compensation, such as
salary, wage or other forms of

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remuneration and fringe benefits, to a (2) Managerial officers including other

qualified disabled employee, by reason officers or members of the managerial
of his disability, than the amount to staff
which a non-disabled person performing (3) Members of the Family of the employer
the same work is entitled who are dependent on him for support
(4) Field personnel
5. Favoring a non-disabled employee over a (5) Domestic helpers
disabled employee with respect to (6) Persons in the personal service of
promotion, training opportunities, study another
and scholarship grants solely on account (7) Workers paid by Results
of the latter’s disability (8) Farm tenancy or leasehold
(9) Persons working in their respective
6. Re-assigning or transferring a disabled Homes in needle work or in Cottage
employee to a job or position he cannot industry duly registered
perform by reason of his disability
1. Managerial employee
7. Dismissing or terminating the services of - primary duty consists of the management of
a disabled employee by reason of his the establishment in which they are employed or
disability unless the employer can prove of a department or subdivision thereof, and to
that he impairs the satisfactory other officers or members of the managerial staff
performance of the work involved to the
prejudice of the business entity: 2. Field personnel
Provided, however, that the employer -nonagricultural employed who regularly
first sough to provide reasonable perform their duties away from the principal
accommodations for disabled persons place of business or branch of the office of the
employer and whose actual work hours in the
8. Failing to select or administer in the most field could not be determined with reasonable
effective manner employment tests certainty
which accurately reflect skills, aptitude
or other factor of the disabled applicant Constitutive Elements of Employment
or employee that such test purports to Relationship:
measure, rather than the impaired
sensory, manual or speaking skills of 1. Economic
such applicant or employee, if any - Involves creation or provision of
goods and services that meet the
9. Excluding disabled persons from materials need of people
membership in labor unions or similar 2. Social
organizations - Workers have personal needs
that go beyond economic
3. Legal
Art 82: Coverage
- affected and effected by law
General Rule: Labor Code applied in all
establishments whether for profit or not
Art 1170, CC:
The relations between capital and labor
Exceptions: GMOFF DPR FDHC
are not merely contractual. They are so
(1) Government employees
impressed with public interest that labor
contracts must yield to common good

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Art 19, CC: abuse of right principle employee cannot substitute another in his place
Every person must, in the exercise of his without consent of his employer
rights and in the performance of his
duties, act with justice, give everyone his *In administrative and quasi-judicial proceedings,
due, and observe honesty and good faith substantial evidence through documentary and
testimonial evidence is sufficient as a basis for
Test of Employment Relationship: judgement on the existence of employer-
- Right of Control Test – where the person for employee relationship
whom the services are performed reserves a
right to control not only the end to be achieved * Employment relationship is one thing, pay
but also the means to be used in reaching such determination is another. Employment
end relationship is determined by the four-fold test.
Piece-rate, boundary and “pakyaw” are merely
methods of pay computation and do not prove
(1) Selection and engagement of the whether the payee is an employee or not
employee
(2) Payment of wages *Employee-employer relationship is determined
(3) Power of dismissal by law; it cannot be negated simply by
(4) Employer’s power to control the repudiating it in the management or
employee with respect to the means and employment contract
methods by which the work is to be
accomplished
- Control test calls merely for the *The mere fact that an entity is a labor union
existence of the right to control does not mean that it cannot be considered an
the manner of doing the work employer of the persons who work for it. Much
and not the actual exercise of less should it be exempted from the very labor
the right laws which it espouses as a labor organization;
even an unregistered association may be
deemed an employer
SSS Law:
*Employer – any person, natural or Kinds of Employees
juridical, domestic or foreign, who (1) On the basis of Tenure
carries on in the Philippines any trade, a. Permanent – appointed for a job for
business, industry, undertaking or an indefinite period; regular
activity of any kind and uses the services
of another person who is under his order Art 295:
as regards the employment Regular employee is one who does a job which is
necessary or desirable to the usual business of
*Employee – any person who performs the employer. Casual employee is hired for
services for an employer in which either particular on-and-off activities
or both mental and physical efforts are
used and who received compensation for b. Temporary – stays on the job for a
such services, where there is an definite period
employer-employee relationship  Fixed period employment
 Probation – a six-month
* Independent Contractors can employ other to period which the employer
work and accomplish contemplated result observes the performance
without consent of the contractee, while the and conduct of the employer;

13
 LABOR STANDARDS
REVIEWER

if employee passes, he is  Between the contractor and its

retained as regular and if fails, employees the Labor Code applies;
employment ends between the contractee and the
employees there is no employer-
(2) Entitlement to codal basic benefits (Arts employee relationship
82-96)  Labor-only contracting is prohibited
- statutory benefits applies to those - His contract is not to accomplish
covered within Art 82, a job or service but merely to
- general employment benefits i.e. SSS supply the people to do the job;
Law, 13th month pay, solo parent law, in effect, he does not really hire
and the employee’s compensation law do people, but merely recruit and
not follow Art 82 supplies people

(3) Wage determination

- whether based on time (Arts 83, Art 83: Normal Hours of Work
84 and 87) or non-time (Art 101) - Not exceed eight hours a day
- applies to an employee or non-  Health personnel in cities and
employee for basis of municipalities with a population of at
employment relationship is the least 1M or in hospitals and clinics with
four-fold test and not the basis a bed capacity of at least 100 shall work
of pay for 8 hours a day for 5 days a week,
exclusive of time for meals, except
(4) Salary component where exigencies of the service require
a. Daily-paid - day/s actually worked that such personnel work for 6 days or
b. Monthly-paid - all the days of the 48 hours, in which case he is entitled to
month including the rest day and 30% of their regular wage for work on
holidays and must meet the min the sixth day
wage rate for each day of the month,  Health personnel includes resident
or else, untrue physicians, nurses, nutritionists,
dieticians, pharmacists, social workers,
(5) Rank and union membership laboratory technicians, paramedical
a. Managerial – ineligible for union technicians, psychologists, midwives,
membership due to conflict of attendants and all other hospital or clinic
interest arising from a confidential personnel
nature of position  40 hour workweek not applicable when
b. Supervisory health personnel have a training
c. Rank-and-file program approved by the appropriate
government agency, in which case there
WHEN EMPLOYMENT RELATIONSHIP ABSENT; is no employer-employee relationship
JOB CONTRACTING OR INDEPENDENT  Health personnel in government service
CONTRACTORSHIP are excluded from coverage of Art 82 to
 A contractor is self-employed or an 96; they are covered under RA NO 7305
employer to others  Twelve-hour work shift with
 If a contractor hire other workers, the corresponding overtime pay is valid in
latter are his employees and not those of view of the nature of the company’s
the contractee business and the demand of its clients

14
 LABOR STANDARDS
REVIEWER

Art 84: Hours Worked SCOPE:

- Hours worked shall include all time 1. Preliminary activities (before work)
during which an employee is required to and postliminary activities (after
be on duty or to be at a prescribed actual work) if pursued for
workplace and all time during which an employer’s benefit
employee is suffered or permitted to 2. Waiting Time: engaged to wait or
work waiting to be engaged if such
- Rest periods of short duration during idleness is spent predominantly for
working hours shall be counted as hours the employer’s benefit or considered
worked an integral part of work
3. Working while eating if employee is
 Principles in determining hours worked not relieved in work because he is
(a) All hours are hours worked which the required to perform his duties,
employee is required to give his whether active or inactive, while
employer, regardless of whether or eating
not such hours are spent in 4. Working while sleeping if it is subject
productive labor or involve physical to serious interruption or takes place
or mental exertion under conditions substantially less
(b) An employee need not leave the desirable that would likely to exist at
premises of the workplace in order the employee’s home
that his rest period shall not be 5. On call
counted, it being enough that he - If public health worker, entitled
stops working, may rest completely to 50 % of his regular wage
and may leave his workplace, to go 6. Travel time
elsewhere, whether within or a. Travel from home to work, when
outside the premises of his employee receives an emergency
workplace call outside of his regular
(c) If the work performed was working hours and is required to
necessary, or it benefited the travel to his regular place of
employer, or the employee could not business or some other work site
abandon his work at the end of his b. Travel that is all in the day’s work
normal working hours because he if part of his principal activity,
had no replacement, all time spent unless employee decide to go
for such work shall be considered as home instead of returning to his
hours worked, if the work was with employee’s premises
the knowledge of his employer or c. Travel away from home when it
immediate supervisor cuts across the employee’s
(d) The time during which an employee workday
is inactive by reason of interruptions 7. Lectures, meetings, and training
in his work beyond his control shall programs not counted if the there
be considered time either if the criteria are met:
imminence of the resumption of a. Attendance is outside of the
work requires the employee’s employee’s regular working
presence at the place of work or if hours
the interval is too brief to be utilized b. Attendance is in fat voluntary
effectively and gainfully in the
employee’s interest

15
 LABOR STANDARDS
REVIEWER

c. The employee does not perform serious loss which the employer
any productive work during such would otherwise suffer
attendance d. Where the work is necessary to
8. Grievance meeting unless a bona prevent serious loss of perishable
fide union is involved goods
9. Semestral break e. At the employee’s request in order
- Regular full-time monthly-paid to leave home early, but shall not be
private school teachers are compensable
entitled to salary and ECOLA  DOLE allows 30-minute meal time (not
compensable), provided:
 Works hours of Seamen a. Employees voluntarily agree in
- Laborer need not leave the writing and willing to waive overtime
premises of the vessel in order pay for such shortened meal period
that his period of rest shall not b. No diminution whatsoever in the
be counted, it being enough that salary and fringe benefits of the
he ceases to work employees existing before the
effectivity of the shortened meal
 Burden of proof befalls on the employer period
when he alleges that his employee c. Work of employees does not involve
worked for less than the normal hours strenuous physical exertion and they
are provided with adequate coffee
Art 85: Meal Periods breaks in the morning and afternoon
- Duty of the employer to give employee not d. Value of the benefits derived by the
less than 1 hours for regular meals, hence employees from the proposed work
not compensable arrangement is equal to or
commensurate with the
 When work is continuous for several compensation due them for the
shifts, the meal time breaks should be shortened meal period as well as the
counted as working time for purposes of overtime pay for 30 minutes as
overtime compensation determined by the employees
 The implementing rules allow meal time concerned
to be less than 60 minutes, but in no e. The overtime pay of the employees
case less than 20 minutes; such will become due and demandable if
shortened meal time be with full pay ever they are permitted or made to
 If less than 20 minutes, it shall be work beyond 4:30 pm
considered as rest period which is f. The effectivity of the proposed
working time working time arrangement shall be
 Cases where shortened meal break is of temporary duration as determined
allowed: by the DOLE Sec
a. Work is non-manual or does not  Changing lunch break from paid to
involve serious physical exertion unpaid is a valid exercise of
b. Establishment regularly operates not management’s prerogative as long as it
less than 16 hours a day applied to union and non-union workers
c. Where there is actual or impending
emergencies or there is urgent work
to be performed on machineries,
Art 86: Night Shift Differential
equipment or installation to avoid

16
 LABOR STANDARDS
REVIEWER

- Every employee shall be paid  Claim for overtime pay will not be
NSD not less than 10% of his granted for want of factual or legal basis
regular wage for each hour of  How work day is counted
work performed between 10 pm - Day is understood to be 24 hour
to 6 am period which commences from
- No waivable the time the employee regularly
- Burden of proof of payment starts to work
befalls on the employer - 8 am to 4 pm is the regular
working hours while 8 am to 8
Art 87: Overtime Work
am the following day is working
- Overtime pay is regular wage
day
plus 25% of regular wage
- Any work in excess of 8 hours
- 30% if overtime work is on a
within 24 hour period is
holiday or rest day
considered overtime work
regardless of whether the work
 Receipt of overtime pay does not
covers two calendar days
preclude right to NDP; the latter is
- Any work in excess of eight hours
payment for work done during the night
not falling within the 24-hour
while the other is payment for the excess
period is not considered as
of regular eight-hour work
overtime work
 Regular base pay excludes Christmas (a) Broken Hours of Work
bonus - Minimum normal working hours
 COLA shall not be included in need not be continuous as to
computation of overtime pay constitute legal working day of 8
 Basis of the overtime pay for work hours as long as the eight hours
rendered on rest days, special days, or within a work day
regular holidays is the “premium pay” (b) Work in Different Shift in a Work Day
which refers to the regular wage - Work in excess of eight hours
combined with additional compensation within a work day is considered
of 30% under Art 93 and 100% under Art as overtime regardless of
94 whether this is performed in a
 CBA may stipulate higher overtime pay work shift other than at which
rate the employee regularly works
 Express instruction form the employer to
the employee to render overtime work is - Example: A worker whose
not required for the employee to be regular tour of duty is from 10
entitled to overtime pay; it suffices that pm to 6 am the following day is
the employee is permitted to work asked to take place of another
 Express approval by a superior is not a whose working hours are from 2
prerequisite to make overtime work pm to 10 pm, the work
 Verbal instruction to render overtime performed by the substituting
work prevails over a memorandum worker during the second shift is
prohibiting such work overtime work if this is rendered
 Claim for overtime pay is not justified in after completing his regular tour
absence of written authority to render of duty since the second shift is
overtime after office hours during still within his work day from 10
Sundays and holidays pm to 10 pm

17
 LABOR STANDARDS
REVIEWER

 Overtime pay in arrears retroacts to the (a) shall not be beyond 12 hours
date when services were actually a day or 48 hours a week or
rendered else shall be subject to
 Waiver or quitclaim of overtime pay is overtime premium
generally not waivable, but valid if the (b) entitled to meal periods of
waiver is exchange for certain benefits not less than 60 minutes and
which may be more than what will rights to rest day, holiday
accrue them in overtime pay pay, rest day pay or leaves
 Overtime pay integrated in basic salary is shall not be impaired
not per se illegal as long as there is (c) in no case shall result to
express written agreement and that as a diminution of existing
result of such waiver, the agreed legal benefits
wage and overtime pay, computed - Reversion to 8 hours workday is
separately, are equal to or higher than considered a valid management
separate amounts legally due prerogative and not a form of
 Compressed workweek is another form diminution of benefits, provided
of waiver of overtime pay the employer shall give prior
- The number of work days is notice to employees
reduced but number of work  Flexible Work Arrangements is
hours in a day is increased to considered a better alternative than the
more than 8 hours, but no outright termination of the services of
overtime pay is claimed employees or closure of the
- Reduced to less than 6 days but establishment and may be adopted after
in no case shall the total number consultation with the employees and
of work hours exceed 48 hours shall be temporary and DOLE Regional
- Subject to conditions mandated Office shall be notified
by DOLE Advisory No 2,Series of (a) Reduction of Workdays where the
2004 normal work days per week are
(a) The scheme is expressly and reduced but should not last for more
voluntarily supported by than 6 months
majority of the employees (b) Rotation of workers where the
(b) In firms using substances, or employees are rotated or alternately
operating in conditions that provided work within the workweek
are hazardous to health, a (c) Force lead where the employees are
certification from an required to go on leave for several
accredited safety days or weeks, utilizing their leave
organization or the firm’s credits if there are any
safety committee that work (d) Broken-time schedule where the
beyond eight hours is within work schedule is not continuous but
the limits or level of number of work hours within the day
exposure set by DOLE’s or week is not reduced
occupational safety and (e) Flexi-holiday schedule where the
health standards employees agree to avail themselves
(c) DOLE regional office is duly of the holidays at some other days,
notified (no need for provided that there is no diminution
approval) of existing benefits as a result of such
- Effects of compressed workweek arrangement
if granted:

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 LABOR STANDARDS
REVIEWER

Art 88: Undertime not offset by overtime equipment, in order to avoid serious loss
 Undertime work on any particular day or damage to the employer or some
shall not be offset by overtime work on other cause of similar nature
any other day or on the same day (NWSA (d) when the work is necessary to prevent
ruling) loss or damage to perishable goods
 Permission given to employee to go on (e) where the completion or continuation of
leave on some other day of the week the work started before eighth hour is
shall not exempt the employer from necessary to prevent serious obstruction
paying additional compensation or prejudice to the business or
 Undertime hours represent only the operations of the employer
employee’s hourly rate of pay while the (f) when it is necessary to avail of favorable
overtime hours reflect both the weather or environmental conditions
employee’s hourly rate of pay and the where performance or quality of work is
appropriate overtime premium such dependent thereon ( based on Omnibus
that, not being equal value, offsetting the Rules)
undertime hours against the overtime
Art 90: Computation of Additional
hours would result in the undue
Compensation
deprivation of the employer’s overtime
- based on regular wage (cash
premium
wage plus value of facilities)
 proper method would be to deduct the
undertime hours from the accrued leave
but to pay the employee the overtime
compensation to which he is entitled
 where the employee has exhausted his
Art 91: Right to Weekly Rest Day
leave credits, his undertime hours may
 Rest period be not less than 24
simply be deducted from his day’s wage,
consecutive hours after every six
but he should be paid his overtime
consecutive normal work days
compensation for work in excess of eight
 Employer shall determine and schedule
hours a day
the weekly rest day of his employees
subject to CBA an IRR of DOLE
Art 89: Emergency Overtime Work  Employer shall respect preference of
- shall be paid additional employees as to their weekly rest if
compensation based on religious grounds

(a) when the country is at war or when any Art 92: When employer may require work on a
other national or local emergency has rest day
been declare by the National Assembly  Actual flood or impending emergencies
or the Chief Executive caused by serious accident, fire, flood,
(b) when it is necessary to prevent loss of typhoon, earthquake, epidemic, or other
life or property or in case of imminent disaster or calamity to prevent loss of life
danger to public safety due to an actual and property, or imminent danger to
or impending emergency in the locality public safety
caused by serious accidents, fire, flood,  Abnormal pressure of work due to
typhoon, earthquake, epidemic, or other special circumstances, where the
disaster or calamity employer cannot ordinarily be expected
(c) when there is urgent work to be to resort to other measures
performed on machines, installations, or

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 LABOR STANDARDS
REVIEWER

 Prevent loss or damage to perishable holiday pay rule

goods
 Nature of work requires continuous Art 94: Right to Holiday Pay
operation and the stoppage of work may  The employer may require an employee
result in irreparable injury or loss to the to work on any holiday but such
employer employee shall be paid a compensation
 Under any analogous circumstances equivalent to twice his regular rate
 Holiday pay is one-day pay given by law
to an employee even if he does not work
on a regular holiday; the purpose of the
law is to prevent diminution of monthly
income of workers on account of work
interruptions declared by the State
 Every employee covered by holiday pay
rule is entitled to minimum wage rate
(daily wage plus COLA) even if he did not
render work on said day, provided he is
present or is on leave of absence with
pay on the work immediately preceding
the holiday
 ECOLA on regular holiday
- If minimum wage order is
defined as basic rate and ECOLA
Art 93: Compensation for rest day, Sunday or then everytime basic rate is paid,
holiday pay ECOLA is also deemed paid
 Pay the higher rate stipulated in CBA in - If applicable wage order does
any case not require ECOLA as included in
 Two kinds of holiday minimum wage, or if basic rate
(a) Regular without ECOLA is equal or higher
(b) Special no-working day than the minimum wage, then
(c) Special working day any ECOLA that exceeds and is
 Daily paid and monthly paid are covered not part of such regular rate
by holiday pay need not be paid as part of
- However start of entitlement of holiday pay
monthly paid employees of  If minimum wage is inclusive of ECOLA, it
holiday pay is OCTOBER 3, 1984 follows that ECOLA should be included in
which was the date of computing the night shift differential,
promulgation of the IBAA case overtime pay, premium pay, and 13th
month pay
Scheduled rest day 30% of regular wage  If holiday falls on a Sunday, it does not
Nature of work is such that 30% of regular wage if follow that the succeeding Monday will
no regular workdays and worked on a Sunday be a holiday, unless otherwise
no regular rest days can be and on holidays proclaimed
scheduled  HOURLY- PAID TEACHERS
Special holiday 30% of regular wage - No pay on regular holiday
Holiday work falls on 50% of regular wage - With pay based on their hourly
special rest day, except rates on special public holiday
those not covered by and other no class days

20
 LABOR STANDARDS
REVIEWER

 Rule on successive regular holidays employed; or executed, under

- Employee not paid on both general supervision, work along
holidays if he absent himself specialized or technical lines
from work immediately requiring special training,
preceding the first holiday, experience, or knowledge, or
unless hew works on the first execute, under general
holiday, in which case, he is supervision, special assignments
entitled to his holiday pay on the and tasks
second day d. Do not devote more than 20% of

REGULAR HOLIDAYS (12)

New Year’s Eve JAN 1
 Exclusions: Maundy Thursday Movable Date
(1) Government employees Good Friday Movable Date
(2) Retail and service establishments Araw ng Kagitingan Monday nearest April 9
regularly employing less than 10 Labor Day Monday nearest May 1
workers Independence Day Monday nearest June 12
National Heroes’ Day Last Monday of August
(3) Househelpers and persons in the
Eid ul-Fitr Movable Date
personal service of another
Eid-ul Adha Movable Date
(4) Managerial employees
Bonifacio Day Monday nearest November
a. Primary duty is to manage the 30
establishment in which they are Christmas Day DEC 25
employed or of department or Rizal Day Monday nearest December
subdivision 30
b. Customarily and regularly directs their hours worked in a
the work of 2 or more employees workweek to activities which are
therein not directly and closely related
c. Authority to hire or fire other to the performance of work
employees of lower rank; or described in the three foregoing
their suggestions and paragraphs
recommendations as to hiring, (6) Field personnel and other employees
firing, promotion, or any other whose time and performance is
change of status of other unsupervised by the employer,
employees are given particular including those who are engaged on
weight task or contract basis, purely
(5) Officers of managerial Staff, if they commission basis or those who are
perform the ff duties: paid a fixed amount for performing
a. Primarily perform work directly work irrespective of time consumed
related to management policies in the performance thereof
of their employer
b. Customarily and regularly  Basis for computation as provided by EO
exercise discretion and NO 203
independent judgement
c. Regularly and directly assist
proprietor or managerial REGULAR HOLIDAY
employee in the management of Unworked 100%
the establishment or subdivision Worked for first 8 hrs 200%
thereof in which he or she is Excess of 8 hrs Plus 30% of hourly rate

21
 LABOR STANDARDS
REVIEWER

on said day Art 95: Right to Service Incentive Leave

EMPLOYEE’S REST DAY
Unworked 100%  Every employer who has rendered at
Worked for first 8 hrs 30% of 200% least one year of service shall be entitled
Excess of 8 hrs Plus 30% of hourly rate to yearly service incentive leave of five
on said day days with pay
SPECIAL NON WORKING DAY/SPECIAL  Service incentive leave shall not apply to
PUBLIC HOLIDAY/ SPECIAL NATIONAL (a) Already enjoying the benefit of
HOLIDAY vacation leave with pay of at least 5
Unworked No pay, unless otherwise days
stated in the CBA (b) Those employed in establishments
Worked for first 8 hrs Plus 30% of the daily rate regularly employing less than 10
of 100% employees or in establishments
Excess of 8 hrs Plus 30% of hourly rate exempted from granting this benefit
on said day by DOLE
Falls on a rest day Plus 50% of daily rate of
 One year service means 12 months
( first 8 hrs ) 100%
whether continuous or broken, reckoned
Falls on a rest day Plus 30% of hourly rate
(excess of 8 hrs) on said day from the day the employee started
SPECIAL WORKING HOLIDAY working
Worked Basic rate, with no  If through individual or CBA, company
premium pay has a period of working days less than 12
DOUBLE HOLIDAY: 2 REGULAR HOLIDAYS ON months, it shall be considered as one
SAME DAY year for purposes of this provision
Unworked 200% of his basic wage  SIL applied to part-time workers on
Worked for first 8 hrs 300% of his basic wage proportional basis and teachers of
If one date falls on Plus 30% of 300% of private schools on contract basis
employee’s basic wage for that day  Service incentive leave shall be
scheduled rest day commutable to its money equivalent if
not used or exhausted at the end of the
 Holiday pay for part-time employee is year
case-to-case basis  SIL is mandatory, while vacation and sick
- The basis is any of the ff leaves are voluntary and is proved by
whichever yields the highest written policy of the company, absent of
amount which, such benefits, being voluntary,
(a) Regular wage per day will not be granted
(b) Basic wage on the working  Other leaves allowed by law
day immediately preceding (a) Paternity leave for 7 days with full
the regular holiday if the pay to all married male employees in
employee is present or on private and public sectors, and
leave with pay on the last available only to four deliveries of
working day immediately the legitimate spouse with whom the
prior the regular holiday husband is living; provided further
(c) Average of his basic wages that delivery includes child birth,
for the last 7 working days miscarriage or abortion
for employees who are paid (b) Parental solo leave (RA 8972)
by results (c) SSS Sick leave (RA 8187)
(d) Basic wage on the particular (d) SSS maternity leave (RA 8187)
day, if worked (e) Paternity leave (RA 8187)

22
 LABOR STANDARDS
REVIEWER

(f) Battered woman leave any cottage industry duly registered in

(g) 60 day special leave under the accordance with law
Magna Carta of Women
Art 99: Regional Minimum Wages
Art. Service Charges
 Employer cannot exempt himself from
 Collected by hotels, restaurants and liability to pay minimum wages because
similar establishments shall be of poor financial condition of the
distributed 85% to employees and 15 % company
to management  Employees not estopped to sue for
- Distributed twice a month at difference in amount of wages
intervals of not exceeding 16  Exempted from minimum wage
days requirement
 In case service charge is abolished, share (a) Household or domestic helpers
of the covered employees shall be including family drivers and persons
integrated in their wages in the personal service of another
(b) Homeworkers engaged in needle
IV. WAGES work
(c) Workers employed in any
 Facilities include articles or services for establishment duly registered with
the benefit of the employee or his family National Cottage Industries and
but shall not include tools of the trade or Development Authority in
articles or service primarily for the accordance with RA NO 3470
benefit of the employer or necessary to provided that such workers perform
the conduct of the employer’s business the work in their respective homes
 Supplements are benefit or privileges (d) Workers in any duly registered
given to the employee which constitutes cooperative when so recommended
an extra remuneration above and over by the Bureau of Cooperative
his basic earning or wage Development and upon approval of
 Facilities are wage deductibles while the Secretary of Labor and
supplements are not Employment, provided:
 To determine whether facility or - Such recommendation shall be
supplement, ascertain the purpose of given only for the purpose of
such benefit making the cooperative viable
 To deduct facilities from wages, the ff and upon finding and
must be complied certification of said Bureau
(a) Proof that such facilities are supported by adequate proof
customarily furnished by the trade - The cooperative cannot resort to
(b) Provision of deductible facilities must other remedial measures
be voluntarily accepted in writing by without serious loss or prejudice
the employee to its operation except through
(c) Facilities must be charged at fair and its exemption from the
reasonable value requirements of the Rules
 Minimum wage and SIL do not apply to (e) Barangay micro business enterprises,
farm tenancy or leasehold, domestic provided that employees be entitled
service and persons working in their to same benefits given to any regular
respective homes in needle work or in employee i.e. social security and
health care benefits and the total

23
 LABOR STANDARDS
REVIEWER

assets including those arising from unless based on a contractual

loans but exclusive of the land on commitment
which particular business entry’s  Employees whose payment has been
office, plant and equipment are terminated may still demand payment of
situated, shall not be more than 3 service award under company policy, and
million in proportionately, of the anniversary
(f) Retail or service establishments and performance bonuses, considering
regularly employing not more than that they already had rendered service
10 workers required, and hence not defeated by
- The contemplation of the phrase release and quitclaim
“regularly employing” excludes
those who are causal or seasonal Art 101: Payment by Results
employees, but includes those  Entitled to
who are employed on probation (a) Minimum daily rate
or employed as learners or (b) Yearly service incentive leave of five
apprentices days with pay
(g) Distressed establishments, new (c) Night shift differential pay
business enterprises and (d) Holiday pay
establishments adversely affected by (e) Overtime pay (conditional)
natural calamities (f) Premium pay (conditional)
Art 100: Prohibition against elimination or (g) 13th month pay
diminution of benefits (h) Other benefits granted by law or CBA
or policy practice
 Rule against nondiminution of
supplements or benefits may apply if:
(a) The grant of benefit is founded on a Art 102: Forms of Payment
policy or has ripened into practice
over a long period of time  No employer shall pay wages by means
(b) The practice is consistent and of promissory notes, vouchers, coupons,
deliberate token, other than legal tender, even
(c) Practice is not due to error in the when expressly requested by the
construction or application of a employee
doubtful or difficult question
Art 103: Time of Payment
(d) Diminution is done unilaterally by
the employer  Wages shall be paid at least once every 2
 Such rule apply SOLELY to benefits weeks or twice a month a intervals not
enjoyed at the time of promulgation of exceeding 16 days
the Labor Code (May 1, 1974)  If delay of payment is due to force
 Exemptions to the RULE: majeure, employer shall pay wages after
(a) Correction of error such force majeure has ceased
(b) Negotiated benefits  No employer shall make payment with
(c) Wage Order compliance less than once a month
(d) Benefits on reimbursement basis  Payment of wages of employees engaged
(e) Reclassification of position, provided to perform work which cannot be
done in good faith completed within 2weeks shall be
(f) Contingent benefits or conditional subject to the following conditions, in
bonus and productivity measures, the absence of CBA

24
 LABOR STANDARDS
REVIEWER

(a) Payments are made at intervals not  The claimants, if all are of majority age,
exceeding 16 days shall execute an affidavit attesting to
(b) Final settlement is made upon their relationship to the deceased. If one
completion of work is a minor, by his natural guardian or
nearest kin
Art 104: Place of Payment
 Affidavit be presented to employer
 GR: Place of payment shall be at or near
Art 106: Contractors or Subcontractor
the place of undertaking
 EXN: Other than work place is  When an employer enters into a contract
permissible, provided: with a contractor and subcontractor, the
(a) When payment cannot be effected at employees of both shall be paid
or near the place of work by reason according to law, and in default of the
of the deterioration of peace and contractor and subcontractor, the
order conditions, or by reason of employer shall be jointly and severally
actual or impending emergencies liable to the extent of work performed
caused by fire, flood, epidemic, or under the contract
other calamity rendering payment  In Labor-only contracting, the contractor
thereat impossible is merely an agent of the employer and it
(b) When the employer provides free is the employer who is directly
transportation to the employees responsible to the employees
back and forth  Contracting or Subcontracting –
(c) Under any analogous circumstances; arrangement whereby the principal
provided that the time spent by the agrees to put out or farm out with a
employees in collecting their wages contractor or subcontractor for the
shall be considered as compensable performance of completion of a specific
hours worked period within a definite or
(d) No employer shall pay his employees predetermined period
in any bar, night or day club, drinking
establishment, massage, clinic, dance Requisites for legitimate contracting:
hall, or other similar places, except in (a) Performance and completion of a
case of persons employed in said designated job , and not just
places suppling people
 Payment thru banks allowed, provided (b) Conducts an independent business
(a) Written permission of majority of (c) Adequate capital to do the job and
employees pay his people
(b) 25 or more employees  Between principal employer and
(c) Within 1 km radius to commercial, contractor, the CIVIL CODE applies
savings, or rural bank  Between contractor and its employees,
(d) Within period of payment of wages the LABOR and special labor laws apply
fixed by law  If contracting is not lawful i.e. because
Art 105: Direct Payment of Wages the arrangement is labor-only
contracting, principal employer is not
 Directly to employee unless there is only responsible for the wages, but to all
force majeure, in which case to any the obligations of an employer
person under written authority or if
employee died, to the heirs without Requisites of labor-only contracting
necessity of intestate proceedings (LOC):

25
 LABOR STANDARDS
REVIEWER

A. Supplying workers for another  For further discussion on contractor and

B. Lack of substantial capital or subcontractor, see DOJ NO 18-A
investment and performance of  Legitimate contracting if complies with
activities directly related or usually requisites under Section 4 of DOJ NO 18-
necessary or desirable to the A
principals’ main business
C. Contractor does not exercise control Art 108: Posting of Bond
over the performance of the  The employer may require the
employees contractor to furnish a bond equal to
cost of labor on the condition that the
 A full-fledged legitimate labor contractor said bond will answer for the wages due
has to be registered with DOLE;
otherwise he is presumed an LOC Art 109: Solidary Liability
 A cooperative may be engaged in lawful
 Every employer shall be responsible with
labor contractor, but cannot engage in
his contactor or subcontractor for any
job contracting ( SEE Department
violation of any provision of this Code
Circular No 1 Series of 2007)
 For purposes of determining the extent
(a) Labor Service Cooperative
of their civil liability, they shall be
- Cooperative is engaged
considered as direct employers
exclusively in job contracting and
 But in construction and service
subcontracting services to
contracting, principal’s liability limited to
principal employer
wage increase only
(b) Worker’s Cooperative
 Extent of employee’s liability, being an
- Principally consist of providing
indirect employer, is only to unpaid
employment and business
wages and other benefits provided by
opportunities to its members
law, but not for liability invested with
and manages it in accordance
punitive character such as an award for
with the cooperative principles
back wages for illegal dismissal
- Cannot engage in contracting or Art 110: Workers Reference in case of
subcontracting ( See Memo Bankruptcy
Circular No 2012-21 dated July
18, 2012) - Claims of government are
- subordinate to employees’
 Substantial Capital refers to paid-up wages and monetary claims
capital stocks/shares of at least 3, 000, - Preferred right cannot be
000 pesos in the case of corporation, or, invoked without formal
at least, 3, 000,000 net worth in case of declaration of bankruptcy or
single proprietorship liquidation order
- One is not a LOC if one has Art 111: Attorney’s Fees
substantial capital although
without investment in tools  In no case shall a lawyer accept or
 Two kinds of prohibited contract of demand attorney’s fees more than 105
employment from the amount of wages recovered in
(a) Labor-only contracting judicial or administrative proceedings for
(b) Arrangements prohibited by public recovery of wages
policy ( Section 7 of DOJ NO 18-A)
Art 112: Non-interference in Disposal of Wages

26
 LABOR STANDARDS
REVIEWER

 Employer cannot compel employees to

purchase merchandize sold by the
Art 115: Limitations (related to Art 114)
former
 No deduction unless the employees has
been heard thereon, and his
Art 113: Wage Deduction responsibility has been clearly shown
 IRR requires the ff conditions for
 No deduction of wages, unless: deduction to be valid
(a) In cases where the worker is insured (a) Employee is clearly shown to be
with his consent by the employer, responsible for the loss or damage
and the deduction is to recompense (b) Employee given ample opportunity
the employer for the amount paid by to show cause why deduction should
him as premium on the insurance not be made
(b) For union dues, in cases where the (c) Deduction shall be fair and
right of the worker or his union to reasonable
check-off has been recognized by the (d) Does not exceed 20% of the
employer or authorized in writing by employee’s wage in a week
the individual worker concerned
 Deduction allowed by law
(a) Deduction for meals and other Art 116: Withholding of wages and kickbacks
facilities prohibited
(b) In cases where the employee is
Art 117: Deduction to ensure employment
indebted to the employer, where
such indebtedness has become due  Deduction of wages as consideration of
and demandable promise of employment or retention in
(c) in court awards, wages may be the employment is prohibited
subject of execution or attachment,
but only for debts incurred for food, Art 118: Retaliatory Measures
shelter, clothing, and medical  Unlawful for employer to refuse or
assistance reduce wages and benefits, discharge or
(d) withholding tax in any manner discriminate against any
(e) SSS deductions of a member of a employee who has filed any complaint or
legally established cooperative has testified or is about to testify
(f) SSS, medicare, and PAGIBIG
 Whenever there is unfair labor practice,
contributions
the employees can stage a strike
 Reduced workday must be done in good
faith and must not be a form of Art 119: False Reporting
constructive dismissal
 Employer shall keep a payroll
Art 114: Deposits for Loss or Damage  Contents:
(a) Length of time to be paid
 No employer shall require his employees
(b) Rate of pay per month, week, day,
to make deposits from which deductions
hour, or piece-rate
shall be made for loss or damage of
(c) Amount due for regular work
tools, except when employer is engaged
(d) Amount due for overtime work
in such trades where the practice of such
(e) Deductions from wages
deduction is recognized or is necessary
(f) Amount actually paid
or desirable as determined by DOLE
Art 123: Wage Order

27
 LABOR STANDARDS
REVIEWER

 Any aggrieved party by the Wage Order  Where there is wage distortion in wage
issued by the Regional Board may appeal structure due to wage increase,
such order to the National Wages and employer and union shall negotiate and
Productivity Commission with 10
in case of dispute:
calendar days from publication of such
order
 Commission to decide within 60 days 1. Grievance procedure under their CBA
from date of filing thereof 2. If unresolved, through voluntary
 Appeal does not stay the order unless arbitration
persons appealing file an undertaking 3. Unless otherwise agreed by parties in
with sureties writing, dispute to be decided by
 Review of wage order may be motu voluntary arbitrators within 10 calendar
proprio or upon appeal
days from the time said dispute was
 Grounds:
(a) Non-conformity with guidelines or referred to voluntary arbitration
procedures 4. In case there is no CBA or recognized
(b) Questions of law labor unions, employers and employees
(c) Grave abuse of discretion to correct distortions
 RTWPB determine and fix minimum 5. Any dispute be settled through the
wage rates applicable in their regions, National Conciliation Meditation Board
while NWPC prescribes guidelines for
and if remains unsolved within 10
determination of minimum wage and
productivity measures calendar days, be referred to NLRC
 Wage order by RTWPB does not need 6. NLRC mandated to conduct continuous
prior approval of NWPC hearings and decide within 20 calendar
 What NWPC requires of RTWPB is to days from the time said dispute is
conduct public hearing over a petition submitted for compulsory arbitration
for a wage order, to decide such petition 7. Pendency of dispute shall not delay the
within 30 days after the last hearing, and
applicability of the increase in prescribed
to furnish NWPC a copy of the Wage
Order wage rates pursuant to the Wage Order

V. CONDITIONS OF
EMPLOYMENT

ART 124: STANDARDS/ CRITERIA FOR MIN.

WAGE DISTORTION
WAGE FIXING
– situation where an increase in prescribed wage
 Regional min wages to be determined by rates results in the elimination or severe
regional board which must be contraction of intentional quantitative
economically feasible to meet the min. differences in wage or salary rates between and
standards of living among employees groups in an establishment as
to effectively obliterate the distinctions
embodied in such wage structure based on skills,

28
 LABOR STANDARDS
REVIEWER

length of service, or other logical bases of yearly CBA increase or that the employee
differentiation; effect of increasing the pay of an had been promoted while other were
employee to such an amount that equals, almost not (Manila Mandarin Employees Union
equals or overtakes another employee’s pay vs NLRC)
which has not been similarly increased
 Court must approximate an acceptable
 All workers paid by result shall receive quantitative difference bet job or
not less than the prescribed wage rates position levels, but an across-the-board
per 8 hrs work a day, or proportion pay adjustment is not required by law
thereof for working less than 8 hrs.
 Floor wage order does not require across Summary Principles about Salary Distortion
the board pay increase who at the time (a) Assumes an existing grouping or
of promulgation of the wage order were classification of employees which
already paid more than the existing min establishes distinctions on relevant or
wage legitimate basis
 Wage order covers only min wage (b) Often results due to government
earners decreeing increases in min. wages or
 Salary distortion results from the may be through merger of companies
disappearance or virtual disappearance (c) If such exists, there is no legal
of pay differentials because of requirement that the gap which had
compliance to the wage order previously existed be restored in
precisely the same amount; it suffices
What is NOT distortion: that the correction may be made by
(a) Salary restructuring: Due to revision of setting a substantial gap
salary scale initiated by employer for it is (d) Done through grievance procedure or
a matter of management judgment and CBA
discretion, subject for bargaining
negotiations, unless done arbitrarily  In contracts for construction projects and
(b) If employees are employed in the same for security, janitorial and similar
company but in different regions for services, prescribed increases be borne
wage-fixing has been regionalized by principal clients and in their default,
considering certain standards existing in by the contractor subsidiarily
the region
(c) No disparity if due simply to the fact that
employees had been hired on different ART 125: FREEDOM TO BARGAIN
dates and were thus receiving different  No wage order shall be construed to
salaries, or that an employee was hired prvent in particular firms or enterprises
initially at apposition level carrying a of industries from bargaining for higher
hiring rate higher than the rates for the wages with their respective employee
others or that an employee failed to
meet the cut-off date in the grant of ART 126: PROHIBITION AGAINST INJUCTION

29
 LABOR STANDARDS
REVIEWER

 No preliminary or permanent injuction or 1. DOLE

temporary restraining order may be 2. TESDA
issued by any court, tribunal or other 3. REGIONAL ARBITRATION BRANCE of
entity against any proceedings before NLRC (compulsory arbitration cases)
the Commission or the Regional Boards 4. NATIONAL COUNCIL MEDIATION BOARD
( conciliation, mediation and voluntary
ART 127: NON-DIMUNTION OF BENEFITS arbitration functions)
 No wage order issued by any regional 5. REGIONAL TRIPARTITE WAGE AND
board shall provide for wage rates lower PRODUCTIVITY BOARD (min wage
than the statutory minimum wage rates determination )
prescribed by Congress 6. SSS, GSIS and PHILHEALTH (special labor-
related cases)
ART 128: VISITORIAL AND ENFORCEMT POWER
by DOLE Sec or Rep DO NO 131-13: Enforcement Framework
 Any time of day or night whenever work (a) Joint assessment –evaluation by DOLE
is being undertaken, to question and with employer and employees
investigate to determine if there are (b) Compliance visit – in response to a
violations complaint against an establishment
 Issue compliance orders, writs of (c) Occupational Safety and Health
execution, except in cases where the Standards Investigation – for safe and
employer contests the findings and healthy standards
raises issue supported by documentary
proofs not considered during inspection Scope of Visitorial Enforcement Power
 Order issued by representative is - Broad as long as pertains to matter
appealable to the Sec within labor concerns
 If order involves a monetary award, an - Unlimited by the amount of monetary
appeal by the employer may be liability
perfected only upon the posting of a - Quasi- judicial power (Jethro Intelligence
cash or surety bond and Security Corp and Yakult Phils vs Sec
 Order stoppage of work or suspension of of Labor)
operations when non-compliance poses  Writ of execution and garnishment is
grave and imminent danger; within 24 valid
hrs, hearing shall be conducted to - DOLE has authority to determine
determine whether such order be lifted existence of an employer- employee
or not relationship, subject to judicial review,
 *if violation is attributable to employer, not review by NLRC
he must pay the employees concerned  Work relationship existing at the
their wages during the period of time of complaint; hence if
stoppage or work or suspension complaint due to illegal dismissal,
jurisdiction falls under Labor Arbiter
Regional Level Offices:  When there is work relationship, he
may order and administer, after due

30
 LABOR STANDARDS
REVIEWER

hearing, compliance or enforcement (LSED) within 24 hrs after

orders investigation or within reasonable
 But in cases where employer period as may be determined by
contests the findings and raises the Regional Director
issues which cannot be resolved - report shall specify the violations
without evidentiary matters that are discovered, if any, together with his
not verifiable in the course of recommendations and
inspection, shall endorse the case to computations of the amount due
NLRC through Labor Arbiter each worker
 It covers even issues not formally
included in the complaint  Coverage of Complaint Inspection
- not limited to specific allegations
* Unless otherwise agreed, statutory benefits are or violations raised by
apart from contractual benefits (Meycauayan complainants, but shall be a
College v Drilon) thorough inquiry into and
verification of the compliance by
* Employee benefits derived from law are employer with existing labor
exclusive of benefits arrived through negotiation standards and shall cover all
and agreement, unless otherwise provided by workers similarly situated
the agreement itself or by law

Restitution
Disposition of Labor Standard Cases -
Where employer has agreed to
 Regional director exercises both make the necessary restitution of
visitorial and enforcement power violations discovered in the course
over labor standard cases, and is, of inspection, such restitution may
therefor empowered to adjudicate be effected at the plant-level within
money claims, provided there still 5 days from receipt of the inspection
exists an employer-employee results
relationship, and the findings of the - Such report shall be immediately
regional office are not contested by submitted to the Regional Director
the employer contract for verification and confirmation,
and in case it was found that the
restitutions effected were not in
 Inspection Report order, he may direct the LSED Chief
- when assigned to Labor Law to check on the correctness of the
Compliance Officer for inspection, it restitution report
shall conduct the necessary  Compromise Agreement
investigation and submit a report - Written and signed by both parties
thereon to the Regional Director in the presence of the Regional
through the Chief of the Labor Director or his duly authorized
Standards Enforcement Division representative, subject to appeal if

31
 LABOR STANDARDS
REVIEWER

sum settled is below the legal

amount  Appeal
 Hearing - Decision of the Secretary becomes
- Where no proof of compliance is final and executory after 10 days from
submitted by the employer after 7 receipt of the record of the case
days from receipt of the inspection - Motion for reconsideration of the
results, the Regional Director shall secretary’s decision has to be filed as
summon the employer and the a precondition for any further or
complainants to a summary subsequent remedy
investigation - If such motion is denied, a special civil
action for certiorari under Rule 65 of
Exceptions: Endorsement to NLRC the 1997 Rules of Civil Procedure may
(1) Employer contests the findings of be filed with the CA within 60 days
labor regulations officer and raises from receipt of the denial of motions
issues therein (Arts 128, 239, 259, and 263)
(2) That in order to resolve such issues,
there is a need to examine  The validity of quitclaims may be
evidentiary matters assailed in an appeal to the labor
(3) That such matters are not verifiable secretary despite the fact that they
in the normal course of inspection were signed voluntarily and under
(4) Employer shall raise such objections the supervision of the regional
during the hearing of the case or at director, if amount is less than what
any time after receipt such is legally due
objections during the hearing of the  Rectification resulting from
case or at any time after receipt of inspection findings is a regulatory
notice of inspection results action and even non-complaining
Suspension employees will benefit from the
- Secretary of Labor has the power to rectification order
suspend the operations of an  The appeal may be perfected only
establishment whose non-compliance upon the posting of a cash or surety
with law or regulations poses grave and bond equivalent to the monetary
imminent danger to workers award and the DOLE Sec, unlike the
- Within 24 hrs , a hearing shall be rules of the NLRC, does not allow to
conducted to determine whether an entertain a motion to reduce the
order for the stoppage for work or amount of bond
suspension of operations shall be lifted
or not; if violation is attributable to the  Enforcement of Wage Order
fault of the employer, he shall pay the (1) Unionized companies – DOLE
employees concerned their salaries or Inspectors shall always be
wages during the period of such accompanied by the president or any
stoppage of work or suspension of responsible officer of the recognized
operation

32
 LABOR STANDARDS
REVIEWER

bargaining union or any interested

union in the conduct of the Art 130: Facilities for Women
inspection  Seats proper for women and permit
(2) Non-unionized – inspection carried them to use such seats when they
out in the presence of a worker are free from work and during the
representing the workers in the said working hours, provided they can
company perform their duties in this position
without detriment to efficiency
 Separate toilet rooms and lavatories
and dressing room for women
RA No 10151  Nursery in the workplace for the
- Prohibits night work of women workers; benefit of woman employees
but creates a law on employment of  Determine appropriate min age for
night workers, constituting Arts 154-161 retirement or termination in special
Other pertinent laws: occupations such as those of FAs
1. RA No. 6725 - which explicitly prohibits
discrimination against women with Art 131: Maternity Leave Benefits
respect to terms and conditions of  Maternity leave be extended without
employment, promotion, and training pay on account of illness medically
opportunities certified to arise out of the
2. RA No. 6955 – bans “mail-order-bride” pregnancy, delivery, abortion, or
practice for a fee and the export of miscarriage which renders the
female labor to countries that cannot woman unfit for work, unless she has
guarantee protection to rights of women earned unused leave credits from
workers which such extended leave may be
3. RA No. 7192 – Women in Development charged
and Nation Building Act which affords  SSS Section 14-A : Mandatory Leave
women equal opportunities with men to Benefit
act and to enter into contracts, and for - A female member who has paid at
appointment, admission, training, least 3 monthly contributions in the
graduation and commissioning in all 12 month period immediately
military or similar schools of the Armed preceding the semester of her
Forces of the Philippines and PNP childbirth or miscarriage shall be
4. RA No 7322 – increasing the maternity paid a daily maternity benefit
benefits granted to women in the private equivalent to 100% of her average
sector daily salary credit for 60 days or 78
5. RA No 7877 – outlaws and punishes days in case of caesarian delivery
sexual harassment in the workplace and  RA 9269 (VAWC)
in the education and training - Allows the victim protection order
environment and if employed, entitled to a paid
6. RA No 8042 – MWOFA leave until 10 days

33
 LABOR STANDARDS
REVIEWER

-Leave is extendible when necessity scholarship grants , and the

arises as specified in the protection like
order  Criminal liability for willful
- Employee to submit a certification commission under the Labor Code,
form Punong Brgy or Kagawad or without prejudice from filing an
prosecutor or the clerk of court entirely separate and distinct action
that an action has been filed and is for money claims
pending  EXN: Bona fide occupational
 Ra 9170: Magna Carta for Women qualification (BFOQ) – job itself
- A women employee having necessarily requires a particular
rendered continuous aggregate qualification i.e job that hauls or
employment service for at least 6 saws logs in logging operations
months for the last 12 months shall (a) Employment qualification is
be entitled to a special leave of 2 reasonably related to the
months with full pay based on her essential operation of the
gross monthly compensation job involved
following surgery caused by (b) That there is factual basis for
gynecological disorders believing that all or
substantially all persons
Art 132: Family Planning Services, Incentives for meeting the qualifications
Family Planning would be unable to properly
 Provide free family planning services perform the duties of the job
such as application or use of
contraceptive pills and intrauterine Art 134: Stipulation against Marriage
devices  Unlawful for employer to require as
 Prescribe incentive bonus schemes a condition of employment or
continuation of employment that a
Art 133: Discrimination Prohibited woman employee shall not get
 GR: Discrimination against any married or that upon getting
woman employee with respect to married, woman employee shall be
terms and conditions of employment deemed resigned or separated or to
solely on account of her sex is dismiss or in any other manner
unlawful prejudice the woman employee
(a) Payment of lesser merely by reason of her marriage
compensation to a female
employee as against a male Art 135: Prohibited Acts
employee, for work of equal  Deny any woman employed the
value benefits mandated by said Code or
(b) Favoring a male employee discharge any woman employed by
with respect to promotion, him for the purpose of preventing
her from enjoying any of the benefits

34
 LABOR STANDARDS
REVIEWER

 Discharge on account of her (1) works directly under the sole responsibility
pregnancy or while on leave or in of his parents or guardian and the
confinement due to pregnancy employment does not in any way interfere
 Discharge or refuse the admission of with his schooling
such woman upon returning to her (2) child’s employment in public
work for fear shay may be again be entertainment or information through
pregnant cinema, theater, radio, television or other
forms of media (includes below 18)
o Essential
Art 136: Classification of Certain Woman o Contact signed by parents/guardians
Workers with child’s express consent
 Any woman who is permitted or suffered to o Permit from DOLE is secured which
work, with or without compensation, in any obliges employer to ensure protection of
night club, cocktail lounge, massage clinic, bar the child
or similar establishment under the effective
control or supervision of the employer for a (3) RA 9231 (law eliminating worst forms of
substantial period of time deemed as child labor)
employee of such establishment - child below 15 years of age allowed to be
 RA No. 7877: Anti-Sexual Harassment Act employed as long as he works directly under
- includes a man or woman in sole responsibility of his parents or guardians
employment, education or training and where his family members are only
environment employed; his employment does not
endanger his health and morals and that the
Persons liable: parent or legal guardian provide said child
(a) Employer and the like or who has with his primary and secondary education
moral ascendancy over another
who demand, requests, or (4) RA 7323
otherwise requires any sexual - alms to help poor but deserving students
favor from another, regardless of pursue their education by encouraging
whether the demand be private firms and government agencies
accepted or not by allowing them to pay 60% of their
(b) Any person who directs or salaries and 40% through education
induces another to commit any vouchers to be paid by the government
act or who cooperates in an
indispensable manner (5) 15 – 18 years old
o Number of hours and such periods
Art 137: Minimum Employee Age of day allowed by Law
o Nonhazardous
GR: No child below 15 years old shall be
employed HAZARDOUS WORK:
EXN:

35
 LABOR STANDARDS
REVIEWER

(1) Where the nature of the work exposes Art 147: Indemnity for unjust termination of
the workers to dangerous environmental services
elements, contaminations or work (a) Fixed – neither employer or house
conditions helper to terminate before
(2) Where the workers are engaged in expiration of term except for juts
manufacture of handling or explosives cause
and other polytechnic products (b) If unjustly dismissed - be paid by the
(3) Where the workers use or are exposed to compensation already earned plus
power-driven machinery or equipment that for 15 days as indemnity
(4) Where workers use or are exposed to
power-driven tools

Art 140: Contract of Domestic Service Art 148: Service of Termination Notice
 RA No 10361 ( Batas Kasambahay) - If duration not determined either in
 Domestic or household service stipulation or by nature of service, the
– services in the employer’s home which employer of the house helper may give
is usually necessary or desirable for the notice to put an end to the relationship
maintenance and enjoyment thereof and five days before intended termination of
includes ministering to the personal the service
comfort and convenience of the
members of the employer’s household,
including services of family drivers Art 149: Employment Certification
- Upon severance of household service
Art 141-146 relation, the employer shall give house
- Minimum wage rates shall be basic cash helper written statement of the nature
wage which shall be paid to the house and duration of the service and his or her
helpers in addition to lodging, food and efficiency and conduct as house helper
medical assistance
- Assignment in commercial, industrial or Art 150: Employment Records
agricultural enterprise at a wage or - Employer may keep such records as he
salary rate lower than that provided for deem necessary to reflect actual terms
agri or non agri workers and conditions of employment of his
- If below 18 years old, employer shall give house helper which the latter shall
him at least elementary education as authenticate by signature or thumbmark
part of his compensation unless upon request of the employee
otherwise stated
- Employer shall furnish the house helper Art 153: Distribution of Homework
free of charge suitable an sanitary living - Employer of homeworkers includes any
quarters as well as adequate food and person, natural or artificial, who for account
medical attendance of or benefit, or on behalf of any person
residing outside the country, directly or

36
 LABOR STANDARDS
REVIEWER

indirectly or through any employee, agent, and inland navigation during a period
contractor, subcontract or any other person of not less than 7 consecutive hours,
(a) Delivers, or cause to be delivered, any including the interval from midnight
goods, articles or materials to be to 5 am
processed or fabricated in or about  Night worker – any employed person
home and thereafter to be returned whose work requires performance of
or to be disposed of or distributed in a substantial number of hours of
accordance with his directions night work which exceeds a specified
(b) Sells any good, articles or materials to limit
be processed or fabricated in or about
at a home and then rebuys them after
such processing or fabrication either
himself or through some other person
(c) Industrial home work is a system of Art 155: Health Assessment
production under which work for an - At their request, workers shall have the
employer or contractor is carried out right to undergo a health assessment
by a homeworker at his home without charge and to receive advice on
(d) Materials may or may not be how to reduce or avoid health problems
furnished by the employer or associated with their work
contractor; decentralized form or (a) Before taking up an assignment
production where there is little as night worker
supervision (b) At regular intervals during such
(e) Home is referred as dwelling place assignment
except those situated in premises of (c) If they experience health
the employer problems during such an
(f) D.O No. 5 authorizes the formation assignment which are not caused
and registration of labor organization by factors other than
of industrial homeworkers, and performance of night work;
requires employers to pay and remit assessment unless a finding for
SSS, Medicare and ECC premiums; unfitness for night work, shall
complaints for violation involving not be transmitted to others
money claims not exceeding 5, 000 without worker’s consent and no
per homeworker shall be heard and used for his detriment
decided by Regional Director and Art 156: Mandatory Facilities
beyond that amount by Labor Arbiter - Suitable first aid facilities such as
sleeping or resting quarters and
Art 154: Coverage transportation from the work premises
 Night work – all person who shall be to nearest point of their residence
employed or permitted or suffered subject to exceptions
to work at night, except those
employed in agriculture, stock Art 157: Transfer
raising, fishing, maritime transport

37
 LABOR STANDARDS
REVIEWER

 Night workers certified as unfit for night  Not lose the benefits regarding her status,
work due to health reasons shall be seniority and access to promotion which
transferred whenever practicable to a may attached to her regular night work
similar job for which they are fit for work position
 If transfer not practicable, workers shall be  Pregnant woman and nursing mothers may
granted same benefits as other workers be allowed to work at night only if
who are unable to work during such period competent physician certifies
 A night worker certified as temporarily
unfit for night work shall be given the
same protection against dismissal or
notice of dismissal as other workers who
are prevented from working for reasons of
health

Art 158: Women Night Workers

 Measures shall be taken to ensure that an
alternative to night work is available to
women workers who would otherwise be Art 161: Night Work Schedules
called upon to perform such work - To be consulted with worker’s
(a) Before and after child birth, for a representatives
period of at least 16 weeks,
which shall be divided between
the time before and after RA No 10151
childbirth - abolishes prohibition against night work
(b) For additional periods, in respect - provision of facilities, conduct of medical
of which a medical certificate is examination to determine fitness and
produced stating that said observe legal process to decide
additional periods are necessary appropriate action where a worker is
for the health of the mother of found unfit for night work i.e. transfer
the child and separation as last recourse
(c) During pregnancy
(d) During term specified beyond DO No 119-12
that period, after childbirth is - night worker as one whose work covers
fixed (a), the length of which 10 pm to 6 am, provided the worker
shall be determined by DOLE performs no less than consecutive seven
 During said periods, woman shall not be hours
dismissed or given notice of dismissal, - transfer not practicable or workers are
except for just causes that are not unable to render night work for a
connected with pregnancy, childbirth and continuous period of not less than 6
childcare months upon certification of a
competent public health authority, these

38
 LABOR STANDARDS
REVIEWER

workers shall be granted the same  Duty of employer to provide all necessary
company benefits as other workers who assistance to ensure the adequate and
are unable to work due to illness immediate medical and dental attendance
- temporarily unfit worker for a period of and treatment to an injured or sick
less than 6 months shall be given same employee in case of emergency
protection  First aid treatment means adequate,
immediate and necessary medical and
Art 163: Emergency medical and dental services dental attention of remedy given in case of I
- free medical and dental attendance and jury or sudden illness suffered by a worker
facilities during employment, irrespective of whether
(a) full-time registered nurse or not such injury or illness is work-
– 51 - 200 employees, except when connected before more extensive medical
the employer dos not maintain and/or dental treatment be secured;
hazardous workplaces in which case, excludes continued treatment or follow-up
only a graduate first-aider where treatment
there is no registered nurse available
(b) full-time registered nurse, part-time VI. EMPLOYEE’S COMPENSATION AND
physician and dentist and emergency STATE INSURANCE FUND
clinic – 200-300 employees  Worker’s compensation – laws providing
(c) full-time physician, dentist, and full- for compensation for loss resulting from
time registered nurse, dental clinic the injury, disablement or death of
and infirmary with one bed capacity workmen through industrial accident,
for each employee for every 100 casualty or disease, but differs with
employee – more than 300 respect to scope and method
employees  Compensation may be through financial
(d) graduate first aider who may be one assistance due to loss of earnings,
of the employees – 1-50 employees medical benefits or death and funeral
benefits
 In case of hazardous workplaces, no
employer shall engage a physician or dentist Two classes:
who cannot stay in the premises of the 1. Direct payment – employer to
establishment for at least 2 hours if engaged employee
on part-time basis and not less than 8 hours 2. Insurance Statutes – employer to take
if for full-time basis out insurance ether with an insurance
 If non-hazardous, may be engaged o bureau of the State or with a private
retained basis company or to contribute to a
compensation fund; paid by insurer or
Art 164: When emergency hospital not required taken from the compensation fund
 Hospital located within 25 kms from  Labor code adopts compensation fund type
workplace or accessible by 25 minute travel where all covered employers are to remit
monthly to a common fund 1% of the
Art 167: Assistance of employer

39
 LABOR STANDARDS
REVIEWER

monthly salary credit of every covered compensation and to give

employee notice of injury
d. Worker simply files a claim with
Process: ECC which determines on the
1. Within five days, must notify the basis of employees supporting
employer who enters the notice in his documents if such disease is an
logbook occupational disease
2. Within five days after making entry, e. Employer is only duty-bound to
employer reports to SSS or to GSIS the pay regular monthly premiums
sickness, injury or death that he deems and does not need to oppose
work-connected such claim
a. SSS or GSIS to decide on the
claim which serve as
administering agencies of ECC
b. Denial of SSS or GSIS is subject to
appeal to ECC within 30 days
c. ECC decision to CA

PD NO 626  Dependents
- took effect on January 1, 1975 and – legitimate, legitimated, legally adopted
has prospective effect or acknowledged a natural child who is
- Covers Title II, Book IV od the Code married, not gainfully employed and not
on Employee’s compensation and over 21 years of age or over 21 years of
state insurance fund and Title III on age provided he is incapacitated and
Medicare incapable of self-support due to a
- Applies to illnesses contracted on physical or mental defect which is
ro after the date of effectivity; congenital or acquired during minority;
those contracted before said date, the legitimate spouse living with the
the applicable law is the Worker’s employee; and the parents of said
Compensation Act employee wholly dependent upon him
- Held constitutional for regular support
- Material points:
a. Discarded the concept of  Beneficiaries
presumption of compensability – dependent spouse until he/she
and aggravation remarries and dependent children, who
b. Establishes a state insurance are the primary beneficiaries. In their
fund built by the contribution absence, the dependent parents and
of employers based on the subject to restrictions imposed on
salaries of their employees dependent children, the illegitimate
c. Injured worker no longer needs children and legitimate descendants,
to litigate his right to who are the secondary benefits;
provided that the dependent

40
 LABOR STANDARDS
REVIEWER

acknowledged natural child shall be  Proximate Cause – where the primary injury is
considered as a primary beneficiary shown to have arisen in the course of
when there are no other dependent employment, every natural consequence that
children who are qualified and eligible flows form the injury likewise arises out of the
for income benefit employment, unless it is the result of an
 Injury means any harmful change in the independent intervening cause attributable to
human organism from any accident arising claimant’s own negligence or misconduct
out of and in the course of the employment

 Sickness means any illness definitely

accepted as an occupational disease by the OTHER PRINCIPLES:
Commission, or any illness caused by 1. INGRESS-EGRESS/ PROXIMITY RULE
employment, subject to proof that the risk 2. GOING TO OR COMING FROM WORK
of contacting the same is increased by RULE or STREET PERIL PRINCIPLE
working conditions
RESO NO 3914-A
Compensable provided:
(1) That the act of the employee of
going to or coming from the
workplace must have been a
 COMPENSABLE WORK-RELATED INJURY continuing at, and that is he had not
- what is compensated is not the injury or been diverted therefrom by any
disease itself but the attendant loss of other activity and he has not
impairment of earning capacity departed from his usual route to or
from his workplace
Grounds for compensation: (2) An employee on a special errand,
(a) the employee must have been injured at the special errand must have been
the place where his work requires him to be official and in connection with his
work
(b) employee must have been performing (3) If acting within the scope of his
his official functions employment, his protection
continues regardless of place of
(c) If the injury is sustained elsewhere, the injury
employee must have been executing an
order for the employer INCIDENTS OF EMPLOYEMENT
(1) Acts of personal ministration for the
* Arising out of – origin or cause of comfort or convenience of the employee
accident a. call of nature
* In the course of – time, place, and b. rest or refreshment
circumstances under which the accident - applies even if accidentally falls
takes place asleep while he is resting at a
proper time and pace, except if

41
 LABOR STANDARDS
REVIEWER

where his duties are of such - If his being out is covered by an office
nature as tor require him to remain order or a locator slip or pass for official
awake business
c. lunch period unless it occurred a
place where he had no right to be or WHILE LIVING, BOARDING OR LODGING ON
if results from an independent act of PREMISES OF EMPLOYER OR AT WORKING
employee ( union meeting during PLACE
lunch period not compensable ) - not applicable if merely permissive and
not required or where it results from a
(2) Acts for the benefit of the employer risk of danger which is not reasonably
- general injuries sustained while off incidental to the employment
duty are non-compensable unless
engaged in the performance of his
service for the benefit of the WHILE TRAVELLING
employer - As long as the risk is inherent in the
- repairing of truck used by business nature of employment or reasonably
associate of the employer incidental or engaged in the exercise of
functions reasonably necessary or
incidental to contract of employment or
if not actively engaged, if at a place
where he is authorized to be
(3) Acts done to further the goodwill of the - Uses his own vehicle which he also use in
business the performance of his duties
- retrieving personal belongings of - If deviation from route added a peril
passengers while out of his territory which he is only expose during the period
-while working at home when pursuant of deviation
to terms of contract or request of - If injury occurred while on a trip
employer, except if done voluntarily by undertaken for the benefit of the
the employee for his own convenience or employer even in the course thereof the
benefit employees pursues a personal purpose

(4) Slight deviations from work, from EMPLOYER’S SPONSORED ACTIVTIES

curiosity or otherwise - where an employee is injured while at
recreation during a temporary cessation
(5) Acts in emergencies of work, provided the recreation indulges
- rescuing a drowning employee in was fostered and encouraged by the
employer to the end of efficiency of their
EXTRA PREMISES RULE service
- I.E. Shuttle bus since it is an extension of
its premises ACTS OF GOD OR FORCE MAJUERE
- Generally, employer is not liable
SPECIAL ERRAND RULE

42
 LABOR STANDARDS
REVIEWER

- Except when employee is exposed to a. the violation did not bring about the
positional and local risks and such injury injury
caused arose out of and in the course of b. where there is doubt that employees
employment know of their prohibition and such
violation was not the cause of injury
c. violation was not intentional but due
to carelessness or negligence
- applicable even if employees were
injured while engaged in merry-making
while at work (risks of association)
- does not apply if injury results from
intoxication

 Sickness as occupation disease or

compensable
- Compensable if listed as
occupational disease and even if
not listed, as long as the employee
can prove that the nature of his
work increased the risk of
contracting such disease
- New Cancer Doctrine: cancer is
compensable as long as there is
proof that nature of work increased
the risk of contracting cancer
ASSAULT

- compensable as long as there is causal

connection between the employment COVERAGE AND LIABILITY
and the hazard which resulted the injury
- Increased risk jobs Art 174: Compulsory Coverage of State
a. Jobs having to do with keeping the Insurance Fund
peace or carrying of money which
subject the employee to the risk of Scope:
the assault - Employers and employees not over
b. Jobs which expose the employee to 60 years of age
direct contact lawless or responsible - If over 60 and paying contributions
members of the community to qualify for the retirement or life
c. Work as driver in transportation insurance benefit
vehicle - Filipino employees abroad
- Whether public or private and even
EFEFCTS OF VIOLATION OR RULES BY EMPLOYEE if casual, emergency, temporary or
- acts within the sphere of employment substitute employees
but carried out in violation of some - Includes member of the AFP
employer-promulgated rules are - SSS for private, GSIS for public
compensable, provided:

43
 LABOR STANDARDS
REVIEWER

the employee, his dependents or

Extent anyone otherwise entitled to
- Employer is covered from first day receive damages on behalf of the
of operation, while from first day of employee or his dependents
employment for employee - Employee has the option to choose
- Liable to employee or his whether to claim benefits under
dependents, except when the the Labor Code or damages under
disability or death was occasioned the Civil Code
by employer’s intoxication, willful - One who has received
intention to injure or kill himself or compensation under the Labor
another, notorious negligence, or Code cannot recover additional
otherwise provided damages under the Civil Code
- Self-inflicted injuries are not - Simultaneous recovery of benefits
covered such as suicide, unless if under the employees’
there is an agreement between compensation program of the
parties that employee is entitled to Labor Code and under SSS is
compensation regardless of cause allowed (PD No 1921 which lifted
of death the ban on double recovery of
- running amuck not compensable benefits took effect in 1984 and
unless if employee suffers mental applied prospectively)
disorder ( Interorient Maritime
Enterprises vs Pineda)

Art 180: Liability of Third Parties

 Notorious Negligence
 Liability or death is caused by a third
- More than simple or contributory
party – disabled employee or the
negligence
dependents shall be paid by the SIF and
- Signifies deliberate act of the
the SIF shall be subrogated to the rights
employee to disregard his own
of the disabled employee or his
personal safety
dependents
- Disobedience cannot be construed
 When the SIF recovers from such third
as notorious negligence absent any
party damages in excess of those paid or
intention to end one’s life
allowed, such excess shall be delivered
- Proper defenses:
to the disabled employee or other
a. Lack of knowledge or
persons entitled thereto, after deducting
awareness of the peril or the
the cost of proceedings and expenses of
seriousness of the existing
the System
danger
b. Unexpectedness of the
accident
Art 181: Deprivation of Benefits
Art 179: Extent of Liability  No contract or regulation shall operate
- Unless otherwise stated, liability to deprive the employee or his
shall be exclusive and in place of all dependents of any part of the income
other liabilities of the employer to

44
 LABOR STANDARDS
REVIEWER

benefits, and medical or related services Art 187: Review

granted under this Title  Decisions, orders or resolutions of the
commission may be reviewed on
certiorari on questions upon petition of
Art 182: Employees’ Compensation Commission an aggrieved party with 10 days from
notice thereof
 Five ex-officio members:
a. DOLE Sec as chairman Art 188: Enforcement of Decisions
b. GSIS General Manager  Become final and executory if no appeal
c. SSS Administrator is taken therefrom within 10 days from
d. Chairman of the Philippine Medical notice
Care Commission
 All awards granted by the Commission in
e. Executive Director of the ECC
cases appealed from decisions of the
Secretariat
System shall be effected with 15 days
f. two appointive members, one of
from receipt of notice
whom shall represent the employer
 ECC can issue writs of execution for
and the other the employee, for a
decisions which have become final and
term of six years
executory and any person who refuses to
 GSIS Gen Manager and SSS Admin as
comply therewith shall be punished for
Vice Chairman with alternate terms for
contempt
each year
 Four members shall constitute quorum ECC has three thrusts:
 Salient Powers and Duties: (a) Preventive – minimize and control
(a) to have power to administer oath hazards
and affirmation, and to issue o Bureau of Working Conditions
subpoena and subpoena duces to inspect work premises
tecum in connection with any o Occupational Safety and Health
question or issue arising from
Center to train safety
appealed cases
engineers, tests safety
(b) to sue and be sued in court
equipment and undertake
research work

Art 186: Settlement of Claims (b) Compensative

 SIF shall have original and exclusive (c) Curative
jurisdiction to settle any dispute arising - conducts accreditation of qualified
from this Title with respect to coverage, physicians, clinics and hospitals
entitlement to benefits, collection and where ECC patients may be
payment of contributions and penalties referred for admission and
thereon, or any matter related thereto, treatment
subject to appeal to the Commission, - rehabilitation includes physical
which shall decide appealed cases within rehab, vocational assessment, and
20 working days from submission of vocational placement
evidence
THREE KINDS OF BEENFITS

45
 LABOR STANDARDS
REVIEWER

1. Services - The reimbursable medical expenses

- Medical services, appliances and are not only for those incurred for
supplies as may be necessary until primary illness but even those for
the work-connected injury or its complications even if the
sickness ceases complications developed after the
- Rehabilitation services employee’s retirement
2. Cash Income Benefit or Pension due to:
a. Temporary total disability
b. Permanent total disability DIABILITY BENEFITS
c. Permanent partial disability  Disability refers to the loss or
d. Death impairment of earning capacity
3. Funeral benefit  Does not include an employee who
suffers a service-connected injury or
 Medical benefits illness if he can work without any
- Given from the first day of injury reduction whatsoever in his earning
and shall continue during the capacity
subsequent period of his disability  Total disability means disablement of an
and as the progress of his recovery employee to earn wages in the same
may require kind of work, or a work of similar nature,
- Periodic medical report shall be that he was trained for or accustomed to
submitted perform, or any kind of work which a
- Entitled to the benefits only for the person of his mentality and attainment
ward services of an accredited could do
hospital and accredited physician
- Accredited hospitals are prohibited
from asking deposit and collect any
amount but are entitled to 1. Temporary total disability
reimbursement by the ECC - unable to perform any gainful occupation for a
- Medicines purchased are continuous s period of 120 days or less, except as
reimbursed 100% likewise expenses otherwise provided in Rule X of the IRR
incurred at the ICU
- The law does not provide maximum Conditions:
either in the amount to be paid or (a) He has been duly reported to the
the time period within which the System; employer liable for benefit if
medical attendance may be availed injury or sickness occurred prior
of by the employee employee is duly reported for coverage
- Employee himself may acquire the (b) Caused by injury or sickness
needed services and appliances if (c) System has been duly notified
the ECC fails to furnish them
promptly, but has the right to be Period of Entitlement:
reimbursed and such right is not - Within 120-240 days
extinguished by death but is - The system may declare the total
transmitted to legal heirs, unless and permanent status at any time
they are personal in nature after the 120 days of continuous

46
 LABOR STANDARDS
REVIEWER

temporary total disability as may be

warranted by the degree of actual Considered as permanent total disability:
loss or impairment of physical or (a) Complete loss of sight of both eyes
mental functions as determined by (b) Loss of two limbs at or above the ankle
the System or wrist
- If has full recovered as duly (c) Permanent complete paralysis of two
certified by the attending physician, limbs
the period cannot be covered by (d) Brain injury resulting in incurable
any relapse he suffers; it shall be imbecility or insanity
separate and independent from the (e) Such cases as determined by the System
period covered by the original and approved by the Commission
disability in the computation of his
income benefits for temporary total Period of entitlement:
disability (a) full monthly income benefits shall be
paid all compensable months of disability
Amount of benefit: (b) After the benefit under Employees’
- Paid income benefit equivalent to Compensation shall have ceased as
90% of his average daily salary provided under the preceding paragraph,
credit, provided the daily income and if the employee is otherwise
benefit shall not be less than 10 qualified for benefit for the same
pesos nor more than 90 pesos disability under another law
- Monthly income benefit shall be administered by the System, he shall be
suspended of the employee fails to paid a benefit in accordance with the
submit a monthly medical report provisions of that law. This paragraph
certified by his attending physician applies to contingencies which occurred
prior to May 1, 1978
(c) Except as otherwise provided in other
laws, decrees, orders or letters of
instructions, the monthly income benefit
shall be guaranteed for 5 years and shall
2. Permanent Total Disability be suspended under any of the following
- employee is unable to perform any gainful conditions:
occupation for a continuous period of more than 1. Failure to present himself for
120 days, except as otherwise provided by Rule X examination at least once a year
of this Rules upon notice by the System
2. Failure to submit a quarterly
Conditions: medical report certified by his
a. He has been duly reported to the attending physician as required
System; employer liable for benefit if under Sec 5 of Rule IV hereof
injury or sickness occurred prior 3. Complete or full recovery from his
employee is duly reported for coverage permanent disability
b. He sustains it through injury or sickness 4. Upon being gainfully employed
c. The system has been duly notified of the
injury or sickness Amount of Benefit — (a) In the case of the SSS:

47
 LABOR STANDARDS
REVIEWER

In the case of the GSIS, the monthly income

(1) Any employee entitled to permanent total benefit of current pensioners shall be adjusted
disability benefit shall be paid by the System a and recomputed to reflect the twenty percent
monthly income benefit as defined in Sec. 8 (a), (20%) increase over the benefit under PD 1146
[sic] Rule VI of these Rules. effective January 1, 1980.

(b) The number of months of paid coverage shall Sec. 6. Aggregate Monthly Benefit Payable —
be the number of monthly contributions Except the benefit to dependent children under
remitted to the System including contributions Section 4 of this Rule, the aggregate monthly
other than for Employees' Compensation if paid benefit payable, in the case of the GSIS, shall in
before March 31, 1975. The full monthly income no case exceed the monthly wage or salary
benefit shall be paid for all compensable months actually received by the employee as of the date
of disability. of his permanent total disability. (ECC Resolution
No. 2819, August 9, 1984).
(c) The first day preceding the semester of
temporary total disability shall be considered for 3. Permanent partial disability
purposes of computing the monthly income - If as a result of the injury or sickness the
benefit for permanent total disability. employee suffers a permanent partial loss of the
use of any part of his body
Sec. 4. Amount of Benefit for Dependent
Children. — (a) Each dependent child, but not - a covered employee shall continue to receive
exceeding five, counted from the youngest and the benefits provided thereunder even if he is
without substitution, shall be entitled to ten gainfully employed and receiving his wages or
(10%) percent of the monthly income benefit of salary
the employee. These Rules shall not apply to
causes of action which accrued before May 1,
1978.

Sec. 5. Entitlement to the New Income Benefit

Under PD 1641 — (a) The new amount of the
monthly income benefit computed under these
amended Rules shall be applicable to all
contingencies occurring on or after January 1,
1980. However, for contingencies which Complete and No. of months
occurred before May 1, 1978, the limitation of permanent loss of
P12,000 or 5 years, whichever comes first, shall the use of
be enforced. One thumb 10
One index finger 8
In the case of the SSS, the present monthly One middle finger 6
income benefit of current pensioners shall be One ring finger 5
increased by twenty percent (20%) effective One little finger 3
January 1, 1980. One big toe 6
Any toe 3
One arm 50
One hand 39

48
 LABOR STANDARDS
REVIEWER

One foot 31
One leg 46 (c) In case of simultaneous loss of more than one
One ear 10 member or a part thereof, the same monthly
Both ears 20 income shall be paid for a period equivalent to
Hearing of one ear 10 the sum of the periods established for the loss of
Hearing of both ears 50 the member or part thereof but not exceeding
Sight of one eye 25 75. If the result is a decimal fraction, the same
shall be rounded off to the higher integer.

(b) A loss of a wrist shall be considered a loss of (d) The new amount of the monthly income
the hand, and a loss of an elbow shall be benefit computed under these amended Rules
considered a loss of the arm; a loss of an ankle shall be applicable to all contingencies occurring
shall be considered a loss of the foot, and a loss on or after January 1, 1980. However, for
of a knee shall be considered a loss of the leg; a contingencies which occurred before May 1,
loss of more than one joint shall be considered a 1978, the limitation of P12,000 or 5 years,
loss of the whole finger or toe, and a loss of only whichever comes first, shall be enforced.
the first joint shall be considered a loss of one-
half of the whole finger or toe. Other permanent In the case of the SSS, the present monthly
partial disabilities shall be determined by the income benefit of current pensioners shall be
Medical Officer of the System. chanrobles virtual increased by twenty percent (20%) effective
law library January 1, 1980.

(c) The degree of permanent disability shall be In the case of the GSIS, the monthly income
equivalent to the ratio that the designated benefit of current pensioners shall be adjusted
number of compensability bears to 75. and recomputed to reflect the twenty percent
(20%) increase over the benefit under P.D. 1146
Sec. 3. Amount of Benefit — (a) Any employee effective January 1, 1980.
entitled to permanent partial disability benefit
shall be paid by the System a monthly income Sec. 4. Unlisted Injuries and Illnesses — (a) In
benefit for the number of months indicated in cases of injuries or illnesses not listed in the
Section 2 hereof. If the indicated number of schedule under Section 2 hereof, the benefit
months exceeds twelve, the income benefit shall shall be an income benefit equivalent to the
be paid in monthly pension; otherwise, the percentage of the permanent loss of the capacity
System may pay income benefit in lump sum or for work. (Non-Scheduled Disabilities).
in monthly pension.

(b) In case of permanent partial disability less Difference:

than the total loss of the member, the same a.) Permanent total disability – employee’s
monthly income shall be paid for a portion of the loss of work or inability to perform his
period established for the total loss of the usual work
member in accordance with the proportion that b.) Permanent partial disability – occurs
the partial loss bears to the total loss. If the when an employee loses the use of any
result is a decimal fraction, the same shall be particular anatomical part of his body
rounded off to the next higher integer.

49
 LABOR STANDARDS
REVIEWER

which disables him to continue with his employee to continue living with the
former work surviving spouse or the employee’s
abandonment of the said spouse,
IMPORTANT CASES: without justifiable or valid cause and
1. Orlino vs ECC – when an employee if under such ground provided in the
forced to ask for retirement ahead of Family Code
schedule, not because of old age, but  If the deceased employee is the
primarily of her weakened bodily adulterous child of the wife, the husband
condition due to illness contracted in the cannot claim as a depend of said
course of her employment, she should deceased employee
be given compensation for her inability  Abandonment of child by parent is cause
to work during the remaining days for cessation of parental obligation, the
before her scheduled retirement, aside parent cannot claim as dependent
from the benefits
2. GSIS vs CA – conversion from permanent DEATH BENEFIT AND BENEFICIARIES
partial disability to permanent total 1. Death benefits are paid in the form of
disability cash monthly pension
3. Central Azucacera Don Pedro vs de Leon o for lie to the primary
- Even if it is true that the employee beneficiaries, guaranteed for five
who was granted benefit for years
temporary total disability, found a o for not more than 60 months to
new employment and then seeks for the secondary beneficiaries in
a claim for permanent partial case there are no primary
disability, such fact would not itself beneficiaries
necessarily affect the labor’s claim o in no case shall be less than 15,
for compensation for a permanent 000 pesos
partial disability 2. These beneficiaries are:
- An injured laborer’s incapacity for o Primary beneficiaries:
work is not to be measured solely by a. Dependent spouse until he/she
the wages he receives, or his remarries
earning, after the injury, since the b. Dependent children 9legimiate,
amount of such wages or earnings legitimated, natural-born or
may be affected by various legally adopted)
extraneous matters or factors o Secondary beneficiaries
a. Illegitimate children and legitimate
Art 200: Death descendants
 A spouse to be considered a beneficiary b. Parents, grandparents, grandchildren
must be legitimate and living with the o Death benefit shall accrue to the
employee at the time of the latter’s Employees Compensation fund if the
death deceased employee has no beneficiaries
 A spouse who is legally separated de at the time of his death
facto from the deceased employee may o The employee need not be an actual
be held entitled to compensation employee of the public or private sector
benefits if the refusal of the covered at the time of his death, he can be a

50
 LABOR STANDARDS
REVIEWER

retired employee whose retirement was

brought about by permanent disability B. For Secondary beneficiaries:

Sec. 1. Conditions to Entitlement — (a) The (a) The income benefit shall be sixty (60) times
beneficiaries of a deceased employee shall be the monthly income benefit of a primary
entitled to an income benefit if all of the beneficiary which in no case [shall] be less than
following conditions are satisfied: P15,000.00, which shall likewise be paid in
monthly pension (ECC Resolution No. 2799, July
(1) The employee had been duly reported to the 25, 1984).
System;
Sec. 3. Amount of Benefit — (a) In the case of
(2) He died as a result of an injury or sickness; primary beneficiaries, the monthly income
and benefit shall be equivalent to the monthly
income benefit for permanent total disability,
(3) The System has been duly notified of his which shall be guaranteed for five years,
death, as well as the injury or sickness which increased by ten percent (10%) for each
caused his death. dependent child but not exceeding five (5),
beginning with the youngest and without
His employer shall be liable for the benefit if such substitution: provided that, the aggregate
death occurred before the employee is duly monthly benefit payable in the case of the GSIS
reported for coverage to the System. shall in no case exceed the monthly wage or
salary actually received by the employee at the
(b) If the employee has been receiving monthly time of his death; and provided further, that the
income benefit for permanent total disability at minimum income benefit shall not be less than
the time of his death, the surviving spouse must fifteen thousand pesos (P15,000.00). The death
show that the marriage has been validly benefit shall be paid during the entire period for
subsisting at the time of his disability. which they are entitled thereto.

Sec. 2. Period of Entitlement — If the employee has been receiving income

benefits for permanent total disability at the
A. For primary beneficiaries: time of his death, the primary beneficiaries shall
be paid the monthly income benefit equivalent
(a) The income benefit shall be paid beginning at to eighty percent (80%) plus the dependent's
the month of death and shall continue to be paid pension equivalent to ten percent (10%) thereof
for as long as the beneficiaries are entitled for every dependent child but not exceeding five
thereto. (5) counted from the youngest and without
substitution.
(b) The monthly income benefit shall be
guaranteed for five years which in no case shall (b) In the case of secondary beneficiaries, the
be less than fifteen thousand pesos (P15,000.00). income benefit is payable in monthly pension
Thereafter, the beneficiaries shall be paid the which shall not exceed the period of sixty (60)
monthly income benefit for as long as they are months and the aggregate income benefit shall
entitled thereto. (ECC Resolution No. 2799, July not be less than P15,000.00
25, 1984).

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 LABOR STANDARDS
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If the employee has been receiving monthly (P3,000.00) shall be paid upon the death of a
income benefit for permanent total disability at covered employee or permanently totally
the time of his death, the secondary beneficiaries disabled pensioner to one of the following:
shall be paid the monthly pension, excluding the
dependent's pension of the remaining balance of (a) the surviving spouse; or
the five-year guaranteed period. (ECC Resolution (b) the legitimate child who spent for the funeral
No. 2799, July 25, 1984). services; or

Sec. 4. Entitlement to the New Income Benefit (c) any other person who can show
Under PD 1641 — The new amount of the incontrovertible proof of his having borne the
monthly income benefit computed under these funeral expenses. (ECC Resolution No. 3682, July
amended Rules shall be applicable to all 21, 1987)
contingencies occurring on or after January 1,
1980. However, for contingencies which
occurred before May 1, 1978, the limitation of
P12,000 or five (5) yeas, whichever comes first,
shall be enforced.

In the case of the SSS, the present monthly

income benefit of current pensioners shall be
increased by twenty percent (20%) effective
January 1, 1980.

In the case of the GSIS, the monthly income

benefit of current pensioners shall be adjusted
and recomputed to reflect the twenty percent
(20%) increase over the benefit under PD 1146
effective January 1, 1980.

Sec. 5. The new amount of lump sum benefit

computed under these Amended Rules shall be
applicable to all contingencies occurring on or
after May 1, 1980, otherwise entitlement thereto
shall be governed by the immediately preceding
Section.

RULE XIV
Funeral Benefit

Sec. 1. Entitlement to Funeral Benefit — A

funeral benefit of Three Thousand Pesos

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 LABOR STANDARDS
REVIEWER

Art 201: Relationship and Dependency

- All questions of relationship and
dependency shall be determined as of the Art 206: Safety Devices
time of death  If the injury or death was due to
employer’s failure to comply with law or
Art 202: Delinquent Contributions install and maintain safety devices,
 Employer who is delinquent in his employer shall pay the SIF 25% of the
contribution shall be liable to the System lump sum equivalent of the income
 Liability shall constitute a lien on his benefit payable by the system to the
property, real or personal which is to be employee
preferred to any credit, except taxes
 Failure or refusal of the employer to pay Art 207: Prescriptive period
or remit the contributions shall not  Claim for compensation be given due
prejudice the right of the employee or course if filed within three years from
his dependents to the benefits the time the case of action accrued
 The prescriptive period for claims shall
Art 203: Second Injuries be reckoned from the time the employee
 If an employee under permanent partial lost his earning capacity i.e. terminated
disability suffers another injury which from employment due to illness and not
results in a compensable disability when the same first became manifest
greater than the previous injury, the SIF  Constructive filing
shall be liable for the income benefit of - Written
the new disability, provided that if the - Verbal request for medical and
new disability is related to the previous hospitalization expenses made to
disability, the system shall be liable only the corporate employer through its
for the difference in income benefit treasurer
- Request for financial aid in behalf
Art 204: Assignment of Benefits of the family of the deceased
 No claim for compensation under this worker made by the president of
title is transferrable or liable to tax, his union
attachment, garnishment, levy or seizure  Reso No 2127 of the ECC
by or under any legal process, except to - The following are deemed to have
pay any debt of the employee to the been filed for purposes of
System determining the applicability of the
prescriptive period
Art 205: Earned benefits (a) When the system itself receives
 Income benefits shall, with respect to from the concerned employee or
any period of disability, be payable in his duly authorized
accordance with this Title to an representatives, or his employer, a
employee who is entitled to receive written notice giving information
wages, salaries, or allowance for on the occurrence of a certain
holidays, vacation or sick leaves, and any contingency which may be held
award of benefit under a collective compensable under any of the law
bargaining or other agreement that the system administers

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 LABOR STANDARDS
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(b) When a pertinent and authentic

document evidencing particular
contingency that befalls an
employee is submitted
(c) When the concerned employee or
any of his legal beneficiaries files a Art 209: Prohibition
formal claim with the System for  No agent, attorney or other person
life, retirement and/or other pursuing or in charge of the preparation
insurance benefits because of or filing of any claim for benefit shall
disability or death, which may be demand or charge for his services any
also held compensable under the fee, and any stipulation to the contrary
ECC shall be null and void
 In all there foregoing cases, the claimant
shall be required to submit additional Art 210: Exemption from levy, tax, etc
supporting documents if required,  All laws to the contrary notwithstanding,
otherwise noncompliance therewith the SIF and all of its assets shall be
shall be construed as abandonment of exempt from any tax, fee, charge, levy or
claims customs or import duty and no law
 Mailing dates considered date of filing hereafter enacted shall apply to the SIF
 Period to file claim of minors and the unless it is provided therein that the
mentally deficient is 10 years under the same is applicable
new civil code
* Minors who have no legal guardians Art 211: Record of death or disability
– 10 years from the time they reach  All employers shall keep a logbook to
the age of majority or from the time record chronologically the sickness,
a legal guardian has been appointed injury or death
 Entries in the logbook shall be made
Art 208: Erroneous Payment within 5 days from notice or knowledge
 If the system erroneously pays in good of the occurrence of the contingency
faith a beneficiary whose right is inferior  Within 5 days after or knowledge of the
to another, such payment shall discharge occurrence, the employer shall report to
the System from liability, unless and until the System only those contingencies he
such other dependent notifies the deems to be work-connected
System of his claim prior to the  Such logbook shall be open for
payments inspection
 In case of doubt as to the respective  If employer fails to record, gives false
rights of rival claimants, the system is information or withhold material
hereby empowered to determine as to information already in his possession,
whom payments should me be made employer shall be liable 50% of the
 If beneficiary is incompetent, payment income benefit to the entitled employee
shall be made to such persons  In case payment is later known to be
considered best qualified to take care fraudulent and employer is found to be
and dispose of minors property or a party to such fraud, employer shall
benefit

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 LABOR STANDARDS
REVIEWER

reimburse the system full amount of the that the employer can be
compensation paid thereafter reasonably
presumed to have readily
known it soon thereafter

Art 212: Notice of sickness, injury or death  Delay or failure to give the employer
 Given to employer by the employee notice of compensable illness or injury
himself or his dependents or anybody in within the prescribed period does not
his behalf within five days from the bar a claim for compensation it is shown
occurrence of the contingency that the later, his agent or representative
 No notice to the employer shall be in fact knows of such injury or illness or
required if the contingency is known to that he suffered no damage by reason of
the employer or his agents or such delay or lack of notice
representatives such as in the ff  Example of representatives are project
instances: engineer in charge of work, captain of
(a) When the employee suffers the the vessel in which the employee
contingency within the employer’s worked, foreman, assistant manager,
premises superintendent of transport operation
(b) When the employee officially files an  Effect of quitclaim – not a waiver if the
application for leave of absence by agreement is to receive less
reason of the contingency from compensation than what the worker is
which he suffers entitled to recover
(c) When the employer provides  Compensation benefits may be paid in
medical services and or medical foreign currency
supplies to the employee who suffers
from the contingency Art 214: Applicability
(d) When the employer can be  This title shall apply only to injury,
reasonably presumed to have sickness, disability, or death occurring on
knowledge of the employee’s or after January 1, 1975
contingency in view of the ff
circumstances APPEAL
o the employee was (1) No necessity of filing a motion for
performing an official reconsideration before a certiorari could
function for the employer be availed of
when the contingency (2) Theory of exhaustion of administrative
occurred remedies not applicable
o *the employee’s contingency
has been publicized through APPLICABLE LAW
mass media outlets  Compensation is based on the law in
o *specific circumstances of effect at the time the contingency occurs
the occurrence of the  Rights accrued and vested while statute
contingency have been such was in force ordinarily survives its repeal

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 LABOR STANDARDS
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 If an ailment supervened before the new - consent is a must prior testing which
labor code took effect, the governing law shall be written and the person
is the old workmen’s compensation act concerned is of legal age or with
 Where an ailment occurred after January consent from parents or legal
1, 1975, the new law of employer’s guardian
compensation applied - voluntary testing is allowed for
 If the application for compensation does individuals with a high risk for
not state when the claimant contracted contracting HIV
the disease and the claim is field under - HIV testing as compulsory precondition
PD NO 626, the presumption is that eh for employment is unlawful
contracted the disease after the - Exceptions to prohibition of compulsory
effectivity of said decree or January, 1 HIV testing:
1975. o Rape Cases Art 264-266
o Determination of HIV status to
Art 216: Medical Care resolve issued under the Family
 RA NO 7875 – NATIONAL HELATH Code
INSURNACE ACT (FEB 14, 1995) o Compliance with organ
donation act and blood
Art 217: Adult Education donation service act
 Every employer shall render assistance in - Medical confidentiality, unless there are
the establishment and operation of adult grounds for shared medical
education programs for their workers confidentiality among persons in the
and employees as prescribed by medical field or such information or
regulations jointly approved by the DOLE person in charge is subject to subpoena
and DEPED duces tecum and subpoena ad
 Addendum testificandum
(1) RA 9165 - Exclusion of person with HIV from credit
* Two kinds of drug testing: an insurance service is prohibited
o screening test which will provided the person has not concealed
determined the positive result or misrepresented the fact to the
and the type of the drug used insurance company upon application
o confirmatory test which will (3) RA NO 8282 – SSS
confirm a positive screening test - covers private persons including
* If found positive, to be dealt with self-employed person with a
administratively which shall be a ground monthly income of at least 1, 000
for suspension or termination under Art pesos
282 of the Labor Code (4) GSIS
- covers an appointive or elective official,
(2) RA NO 8504 or the Philippine AIDS permanent, substitute, temporary,
Prevention and Control act of 1998 casual or contractual employee with
- compulsory HIV testing is unlawful employer- employee relationship, who
- right to privacy of individuals with are receiving basic pay or salary but not
HIV is guaranteed per diems, honoraria, or allowances,
and who have not reached the

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compulsory retirement age of 65 years a) Employed members in the

old government and private
- compulsory coverage of elective sector
officials shall cease upon the expiration b) Individually paring members
of their term of office but shall have an such as the self-employed,
option to continue with their life OFWs, professionals in
insurance coverage so long as they will private practice
pay both the employee or employer’ c) Non-paying members who
share of the life insurance average, and are entitled to lifetime
regarding his social security coverage, coverage
the said elective official shall continue d) Indigent members under
to be a member and shall be entitled to NHIP
benefits that provide for contingencies
subject to satisfaction of eligibility - Non-paying members:
conditions (a) Retirees and pensioners of
- NOT COVERED BY GSIS: the GSIS and SSS including
(a) Employees who have separate permanent total disability
retirement schemes under special and survivorship
laws and are therefor covered by their pensioners of the SSS prior
respective retirement laws, to include to the effectivity of RA
the embers of the Judiciary, Con- 7875 on March 4, 1995
Coms, and other similarly situated (b) Members who have
government officials reached the age of
(b) Contractual employees who have no retirement and have paid
employer-employee relationship with at least 120 monthly
agencies they serve contributions. Optional
(c) Uniformed members of the AFP and retirees are not yet
the PNP including the BJMP and BFP entitled to lifetime
coverage until they reach
- RA NO 8291 which expands and increase the age of retirement
the coverage and benefits of the GSIS  Legal Dependents who also enjoy
which took effect on June 24, 1997, coverage although the member does not
where unemployment benefit is have to pay additional premium
different from the separation benefit a. Legitimate spouse, non-member
o Separation benefit – cash b. Children (legitimate, illegitimate,
payment and pension given to adopted, and stepchild) below 21
employees who have not years old, unmarried and
reached the retirement age of unemployed; children 21 years old
60 years old but separated from or above but suffering from any
the service congenial disability, either physical
or mental, or any disability
(5) National Health Insurance Act acquired that renders them totally
- Coverage: dependent on the member for
support are also given free

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 LABOR STANDARDS
REVIEWER

coverage as dependents provided o other cost ineffective

membership remains active procedures as defined by
c. Parents 60 years old and above, PhilHealth
not qualified as non-paying  Requirements
members and wholly dependent o payment of at least 3 monthly
on the lifetime for support contributions within the
immediate six months prior to
confinement
o confinement in a Phil-Health
accredited hospital for not less
than 24 hours due to an illness or
 Medical Benefits and Non-Compensable injury requiring hospitalization
Procedures  Minor surgical procedures and
a. Subsidy for room and board and chemotherapy, radiotherapy,
opening room fees hemodialysis and cataract extraction and
b. Allowances for drugs and medicines, a special diagnostic package are
laboratories and doctor’s compensable even on outpatient basis
professional fees and including those  Confinement fall within 45 days
of surgeon and anesthesiologist fees allowance for room and board and
 Each benefit item is subject to a certain complies with the rule on single period
limit or ceiling depending on the case or of confinement
type of illness ( ordinary, intensive or  Principal members are entitled to 45
catastrophic) and category of hospital days coverage each year while their
 If the hospital and doctor’s bills exceed dependents also have 45 days which will
the allowance set in the benefit be shared among them
schedule, the member will be asked to  Any unused benefit for the given years is
pay for the balance in excess of not carried over to the succeeding year
Philhealth coverage  Single period confinement refers to
 Expenses for the following procedures series or successive confinements for the
are not covered except when PhilHealth, same illness or injury not separated from
after actual studies, recommends their each other by more than 90 days within
inclusion subject to approval of the a calendar year
PhilHealth Board :  A member or a beneficiary is not entitled
o non-prescription drugs and to another set of Medicare benefits until
medicines after 90 days; they can only avail of the
o outpatient psychotherapy and unused benefits and room and board
counseling for mental disorders fees until the 45 allowance is exhausted
o drug and alcohol abuse and  A member can avail himself or a new set
dependency treatment of benefits if succeeding confinements
o cosmetic surgery are different illness or condition
o home and rehabilitation
services
o optometric services
o normal obstetrical delivery

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