Labor Laws in The Philippines
Labor Laws in The Philippines
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SEVEN (7) BASIC RIGHTS OF WORKERS AS
GUARANTEED BY THE CONSTITUTION
(OCESHLP):
1. Right to Organize
2. Right to Conduct Collective Bargaining or
Negotiation with Management
3. Right to Engage in Peaceful Concerted
Activities including strike in accordance with
law
4. Right to Enjoy Security of Tenure ART. 2. DATE OF EFFECTIVITY
5. Right to Work Under Humane Conditions
6. Right to Receive a Living Wage ☛ The Labor Code took effect on
7. Right to Participate in Policy & Decision- November 1, 1974 (six months after
Making Processes affecting their rights and its promulgation on May 1, 1974)
benefits as may be provided by law
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ART. 2. DATE OF EFFECTIVITY
☛ The Labor Code took effect on November 1, 1974 (six months after its promulgation on May 1, 1974)
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ART 3. DECLARATION OF BASIC POLICY
The State shall afford protection to labor, promote full
employment, ensure equal work opportunities
regardless of sex, age or creed, and regulate the relations
between workers and employers. The State shall assure
the right of workers to self-organization, collective
bargaining, security of tenure, and just and humane
conditions of work.
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ART 3. DECLARATION OF BASIC POLICY
☛ EMPLOYER
one who employs the services of others; one
for whom employees work and who pays their
wages or salaries.
☛ EMPLOYEE
one who works for an employer; a person
working for salary or wages
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ART 4. CONSTRUCTION IN FAVOR OF LABOR
☛ CONSTRUCTION IN FAVOR OF LABOR CLAUSE
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ART 4. CONSTRUCTION IN FAVOR OF LABOR
☛ CONSTRUCTION IN FAVOR OF LABOR CLAUSE
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ART 4. CONSTRUCTION IN FAVOR OF LABOR
☛ CONSTRUCTION IN FAVOR OF LABOR CLAUSE
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ART 4. CONSTRUCTION IN FAVOR OF LABOR
☛ CONSTRUCTION IN FAVOR OF LABOR CLAUSE
- Courts adopt a liberal approach that favors the exercise of
labor rights. The mandate under Art. 4 is simply to resolve doubt, if
any, in favor of labor. If there is no doubt in implementing and
interpreting the law, labor will enjoy no built-in advantage and the
law will have to be applied as it is.
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ART 4. CONSTRUCTION IN FAVOR OF LABOR
☛ CONSTRUCTION IN FAVOR OF LABOR CLAUSE
☛ MANAGEMENT RIGHTS:
(CPST)
C Right to conduct business
P Right to prescribe rules
S Right to select employees
T Right to transfer or discharge
employees TREY 12
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ART 4. CONSTRUCTION IN FAVOR OF LABOR
☛ CONSTRUCTION IN FAVOR OF LABOR CLAUSE
☛ MANAGEMENT PREROGATIVE
Except as limited by special laws, an employer is free to regulate, according to his own
discretion and judgment, all aspects of employment, including: HIRING, WORK
ASSIGNMENTS, WORKING METHODS, TIME PLACE AND MANNER OF WORK, TOOLS TO BE
USED, PROCESSES TO BE FOLLOWED, SUPERVISION OF WORKERS, WORKING REGULATIONS,
TRANSFER OF EMPLOYEES, WORK SUPERVISION, LAY-OFF OF WORKERS, AND DISCIPLINE,
DISMISSAL AND RECALL OF WORKERS. (HW5T2PLSD) Thus, so long as management
prerogatives are exercised in good faith for the advancement of the employer’s interest and
not for the purpose of defeating or circumventing the rights of employees under special law
or under valid agreements, it shall be upheld.
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ART 5. RULES AND REGULATIONS
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BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF WORKERS
CHAPTER I
GENERAL PROVISIONS
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ART 13. DEFINITIONS
☛ WORKER
-any member of the labor force, whether employed or unemployed
☛ DOCUMENTATION OF WORKERS:
1. Contract Processing – workers hired thru the POEA
shall be issued the individual employment contract
and such other documents as may be necessary for
travel
2. Passport Documentation
3. Visa Arrangement
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ART 17. (POEA) - POEA has taken over the functions of the OEDB
☛ Venue – Money claims or claims for damages should be filed before the Regional
Arbitration branch of the NLRC where the complainant resides or where the principal
office of the respondent/employer is situated, at the option of the complainant.
- Claims for death and burial benefits involving seamen OCWs which the POEA has
jurisdiction are not the same as the claims against the State Insurance Fund of theTREY
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ART 18. BAN ON DIRECT-HIRING
☛ Direct hiring of Filipino workers by a foreign employer is not allowed.
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ART 25. PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT AND PLACEMENT OF WORKERS
☛ DISQUALIFICATIONS:
1. Travel agencies and sales agencies of airline companies;
2. Officers or members of the board of any corporation or members in a partnership engaged
in the business of a travel agency;
3. Corporations and partnerships, when any of its officers, members of the board or partners,
is also an officer, member of the board or partner of a corporation engaged in the business
of a travel agency.
4. Persons, partnerships, or corporations which have derogatory records;
5. Persons employed in the Department of Labor or in other government agencies directly
involved in overseas employment program and their relatives within the 4th degree of
consanguinity or affinity; or
6. Those whose license has been previously canceled or revoked.
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CHAPTER II
REGULATIONS OF
RECRUITMENT AND
PLACEMENT ACTIVITIES
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ART 29. NON-TRANSFERABILITY OF LICENSE OR AUTHORITY
▪ No license or authority shall be used directly or indirectly by any person other than the
one in whose favor it was issued or at any place other than that stated in the license or
authority, nor may such license or authority be transferred, conveyed or assigned to any
other person or entity.
▪ Licensees or holders of authority or their duly authorized representatives may as a rule,
undertake recruitment and placement activities only at their authorized official
addresses.
▪ Change of ownership or relationship of single proprietorship licensed to engage in
overseas employment shall cause the automatic revocation of the license.
▪ All overseas landbased workers shall be provided both life and personal accident
insurance.
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ART 29. NON-TRANSFERABILITY OF LICENSE OR AUTHORITY
☛ GROUNDS FOR DISCIPLINARY ACTION (Under the MWA of 1995) ;
1. Commission of a felony punishable by the laws of the Philippines or by the host country;
2. Drug addiction or possession or trafficking of prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, especially where the laws of the of the host country prohibit the same;
5. Gambling, especially where the laws of the host country prohibit the same;
6. Initiating or joining a strike or work stoppage where the laws of the host country prohibit strikes or similar actions;
7. Creating trouble at the worksite or in the vessel;
8. Embezzlement of company funds or of money an properties of a fellow worker entrusted for delivery to kins or relatives in the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly weapons;
13. Unjust refusal to depart for the worksite after all employment and travel documents have been duly approved by the appropriate government
agency; and
14. Violation of the laws and sacred practices of the host country and unjustified breach of government approved employment contract by a
worker. TREY
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ART31.BONDS-Cashbondfiledbyapplicantsforlicenseorauthorityisnotsubjectto
garnishmentbyjudgmentcreditorofagency
ART32.FEESTOBEPAIDBY WORKERS-Suspensionorcancellationoflicensesmayinclude
awardofdamagestorepair theinjury causedtoitsvictims.
ART34.PROHIBITEDPRACTICES-Asupplementarycontractbeneficialtoworkernot
violativeofprotectionaffordedbytheStatetoworkers.
ART35.SUSPENSION AND/ORMISCELLANEOUSPROVISIONS
ART38.ILLEGALRECRUITMENT(asperRA8042otherwiseknownastheMigrant
Workers’ Actof1995) TREY 29
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☛ PROHIBITED PRACTICES: (CFGIIEOFSBWF)
C to charge or accept amount beyond amount allowed by law
F to furnish or publish false notice or information in relation to Recruitment and Placement
G to give any false notice and information or commit any act of misrepresentation to secure license or authority
I Induce or attempt to induce workers to quit employment to offer him another except if the transfer is to liberate a
worker from oppressive terms and conditions of employment (NOTE: it is not necessary that worker was actually
induced or did quit employment)
I to influence or attempt to influence any person or entity not to employ any worker who has not applied for
employment in his agency
E to engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of
the Phil.
O Obstruct or attempt to obstruct inspection by Secretary
F Fail to file reports
S Substitute or alter employment contracts
B Become officer or Board member of corporation engaged in travel agency
W Withhold or deny travel documents before the departure for monetary or financial consideration other than those
authorized by the Code.
F Failure to actually deploy without valid reason as determined by the DOLE
F Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for
purposes of deployment, in cases where the deployment does not actually take place without the worker’s fault
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☛ THE QUALIFYING CIRCUMSTANCES THAT WOULD MAKE ILLEGAL
RECRUITMENT AS A CRIME INVOLVING ECONOMIC SABOTAGE ARE :
When committed by a SYNDICATE i.e., if it is carried out by a group of
three (3) or more persons conspiring and confederating with one
another; or
(a) When committed in a LARGE SCALE i.e., if it is committed against
three (3) or more persons
☛ PRESCRIPTIVE PERIOD Illegal Recruitment cases under RA 8042
shall prescribe in five (5) years Provided, however, That illegal
recruitment cases involving economic sabotage shall prescribe in
twenty (20) years
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TITLE II
EMPLOYMENT
OF
NON-RESIDENT ALIENS
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ART 40. EMPLOYMENT PERMIT OF NON-RESIDENT ALIENS
- Foreigners or domestic and foreign employers desiring to
employ aliens must secure employment permit from the DOLE
upon determination of the non-availability of a person in the
Philippines who is competent, able and willing at the time of
the application to perform the services for which the alien is
desired.
TITLE I
NATIONAL MANPOWER DEVELOPMENT PROGRAM
CHAPTER I
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY
FOR THEIR IMPLEMENTATION
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ART 45. DEFINITIONS
☛ MANPOWER
- that portion of the nation’s population which
has actual or potential capability to contribute
directly to the production of goods and services.
☛ ENTREPRENEURSHIP
- training for self-employment or assisting
individual or small industries within the purview
of this the LC.
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Types of Special Workers:
1. Apprentice
2. Learners
3. Handicapped
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ART 58. DEFINITION OF TERMS
☛ APPRENTICESHIP
- practical training on the job supplemented by related theoretical instruction
☛ APPRENTICE
- worker who is covered by a written apprenticeship agreement with an individual employer or
any of the entities recognized under this chapter
☛ APPRENTICEABLE OCCUPATION
- any trade, form of employment or occupation which requires more than 3 months of practical
training on the job supplemented by related theoretical instruction
☛ APPRENTICESHIP AGREEMENT
- an employment contract wherein the employer binds himself to train the apprentice and the
apprentice in turn accepts the terms of training
☛ ON-THE-JOB TRAINING
– the practical work experience through actual participation in productive activities given to or
acquired by an apprentice
☛ HIGHLY TECHNICAL INDUSTRIES
– trade, business, enterprise, industry or other activity, which is engaged in the application of
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ART 59. QUALIFICATIONS OF APPRENTICES
☛ Qualifications of an Apprentice
1. at least 15 years of age; provided those who are at least 15
years of age but less than eighteen may be eligible for
apprenticeship only in non-hazardous occupations and the
apprenticeship agreement shall be signed in his behalf by
the parent or guardian or authorized representative of
DOLE.
2. vocational aptitude/ capacity for appropriate test 3. ability
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ART 60. EMPLOYMENT OF APPRENTICES
❑Only employers in highly technical industries may hire apprentices
and only in apprenticeable occupations as determined by the Sec.
of Labor
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ART 73. LEARNERS DEFINED
☛ LEARNERS
- persons hired as trainees in semi-skilled
and other industrial occupations which are
non-apprenticeable and which may be
learned thru practical training on the job in
a relatively short period of time which
shall not exceed 3 mos.
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CHAPTER III
HANDICAPPED
WORKERS
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ART 78. DEFINITION
☛ HANDICAPPED WORKERS
- Are those whose earning
capacity is impaired by age or
physical or mental deficiency or
injury.
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ART 78. DEFINITION
☛ HANDICAPPED WORKERS
- Subject to the provisions of the Code, handicapped workers may
be hired as regular workers, apprentices or learners if their
handicap is not such as to effectively impede the performance of
job operations in the particular occupations for which they were
hired.
- qualified disabled employee shall be subject to the same terms
and conditions of employment and the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a
qualified able-bodied person. Even a handicapped worker can
acquire the status of a regular employee. TREY 49
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ART 78. DEFINITION
☛ Duration of employment
- no minimum, no maximum.
Dependent on agreement but is
necessary that there is a specific
duration
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BOOK THREE
CONDITIONS OF EMPLOYMENT
TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HOURS OF WORK
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ART 82. COVERAGE
☛ ELEMENTS OF EMPLOYER EMPLOYEE RELATIONSHIP:
1. selection and engagement of the employee
2. the payment of wages
3. the power of dismissal
4. the employer’s power to control the employee (with respect to the means and
methods by which the work is to be accomplished)
- The last element as mentioned above is what is known as the CONTROL TEST
- whether the employer controls or has reserved the right to control the
employee not only as to the result of the work to be done but also as to the
means and methods by which the same is to be accomplished. This last
element is the most important index of the existence of the relationship.
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ART 82. COVERAGE
☛ EMPLOYEE
- A natural person who is hired, directly or indirectly, by a natural or juridical person to
perform activities related to the business of the “hirer” who, directly or through an
agent, supervises or controls the work performance and pays the salary or wage of the hire.
☛ MANAGERIAL EMPLOYEES
- Refer to those whose primary duty consists of the management of the
establishment in which they are employed or of a department or
subdivision thereof and to other members of the managerial staff
☛ PURPOSE
- to safeguard the health and welfare of the laborer and
in a way to minimize unemployment by utilizing different
shifts
☛ REGULAR WORKING DAYS:
The regular working days of covered employees shall not
be more than five days in a workweek. The workweek
may begin at any hour and on any day, including
Saturday or Sunday, designated by the employer.
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ART 84. HOURS WORKED SHALL INCLUDE:
4. The time during which an employee is inactive by reason of interruptions in his work
beyond his control shall be considered time either if the imminence of the resumption of
work requires the employee’s presence at the place of work or if the interval is too brief
to be utilized effectively and gainfully in the employee’s own interest.
- Only the maximum is prescribed, not minimum. Part- time work is therefore not prohibited.
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ART 84. HOURS WORKED SHALL INCLUDE:
☛ ENGAGED TO WAIT
- when waiting is an integral part of the job,
it is compensable
☛ WAITING TO BE ENGAGED
- idle time is not working time, not
compensable
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ART 84. HOURS WORKED SHALL INCLUDE:
☛ WHEN TRAVEL TIME COMPENSABLE:
1. Travel from home to work- refers to ordinary work travel but where the
worker is made to work on an emergency call and travel is necessary in
proceeding to the workplace, the time spent on travel is compensable
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ART 85. MEAL PERIODS
☛ MEAL PERIODS
1. Should not be less than sixty (60) minutes, and is time-off/non-compensable
2. Under specified cases, may be less than sixty (60) minutes, but should not be less than
twenty (20) minutes an must be with full pay.
3. If less than twenty(20) minutes, it becomes only a rest period and is thus considered
as work time
☛ NOTE: Employee must be completely relieved from duty. Otherwise, it is
compensable as hours worked.
- Mealtime is not compensable EXCEPT in cases where the lunch period or meal time is
predominantly spent for the employer’s benefit or where it is less than 60 minutes.
- Employees may request that their meal period be shortened so that they can leave
work earlier that the previously established schedule. TREY 63
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ART 85. MEAL PERIODS
☛ REQUISITES :
1. The employees voluntarily agree in writing to a shortened meal period and are willing
to waive the overtime pay for such shortened meal period;
2. No diminution whatsoever in the salary and other fringe benefits of the employees
existing before the effectivity of the shortened meal period;
3. Work does not involve strenuous physical exertion and they are provided with
adequate coffee breaks;
4. The value of benefits is equal with the compensation due them for the shortened
meal period
5. OT pay will become due and demandable after the new time schedule; and
6. The arrangement is of temporary duration.
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ART 86. NIGHT SHIFT DIFFERENTIAL
☛ NIGHT SHIFT DIFFERENTIAL
-Additional compensation of not less than ten percent (10%) of an
employee’s regular wage for every hour of work done between 10:00 PM
and 6:00 AM, whether or not this period is part of the worker’s regular
shift.
- If work done between 10 PM and 6 AM is overtime work, then the
10% night shift differential should be based on his overtime rate.
☛ RATIONALE
- it serves as an inducement of employment
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ART 87. OVERTIME WORK
☛ OVERTIME PAY
- Additional compensation for work performed
beyond eight (8) hours within the worker’s 24-hour
workday. 30% of 130% if on a special holiday/rest day
1.25% of regular wage if done on a regular workday
2.30% of 150% if on special holiday AND rest day
3.30% of 200% if on a regular holiday
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ART 87. OVERTIME WORK
☛ RATIONALE
- employee is given OT pay because he is made to work longer than
what is commensurate with his agreed compensation for the statutorily
fixed or voluntarily agreed hours of labor he is supposed to do.
- As a rule, cannot be waived, as it is intended to benefit laborers and
employees. But when the waiver is made in consideration of benefits
and privileges which may even exceed the overtime pay, the waiver
may be permitted.
☛ NOTE: OT pay will not preclude payment of night shift differential
pay. TREY 67
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ART 87. OVERTIME WORK
☛ COMPRESSED WORKWEEK
-allowable under the following conditions:
1. It is voluntary on the part of the worker
2. There will be no diminution of the weekly or monthly take-home pay and fringe benefits of the
employees;
3. The value of the benefits that will accrue to the employees under the proposed schedule is
more than or at least commensurate with the one-hour OT pay that is due them during
weekdays based on the employee’s quantification
4. The one-hour OT pay will become due and payable if they are made or permitted to work on a
day not scheduled for work on the compressed work week
5. The work does not involve strenuous physical exertion and employees must have adequate rest
periods
6. The arrangement is of temporary duration. TREY 68
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ART 88. UNDERTIME NOT OFFSET BY OVERTIME
Undertime work on any particular day shall not be offset by
overtime work on any other day. Permission given to the employee
to go on leave on some other day of the week shall not exempt the
employer from paying the additional compensation.
☛ RATIONALE
- An employee’s regular pay rate is lower than the overtime
rate. Offsetting the undertime hours against the overtime hours
would result in undue deprivation of the employee’s extra pay for
overtime work.
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ART 89. EMERGENCY OVERTIME WORK
☛ WHEN WORKER MAY BE REQUIRED TO RENDER OT: (WNUNCN)
W 1. Country is at war or any other national/local emergency has been declared by the Chief
Executive/Congress
N 2. Necessary to prevent loss of life/property/ in case of actual/impending emergency in the
locality
U 3. There is urgent work to be performed on machines, installations, or equipment in order to
avoid serious loss/damage to the employer or some other causes of similar nature
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ART 91. RIGHT TO A WEEKLY REST DAY
- Employees should be provided a rest period of not less than twenty four
(24) consecutive hours after every six (6) consecutive normal work days.
- Employer shall schedule the weekly rest day of his employees subject to
collective bargaining agreement. However, the employer shall respect the
preference of employees as to their weekly rest day when such
preference is based on religious grounds. But when such preference will
prejudice the operations of the undertaking and the employer cannot
normally result to other remedial measures, the employer may so
schedule the weekly rest day that meets the employee’s choice for at
least two (2) days a month
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ART 92. WHEN EMPLOYER MAY REQUIRE WORK ON A REST DAY
☛ WHEN EMPLOYEE MAY BE REQUIRED TO RENDER WORK ON A REST DAY:
1. In case of actual or impending emergencies caused by serious accident, fire, flood
typhoon, earthquake epidemic or other disaster or calamity, to prevent loss of life or
property or in cases of force majeure or imminent danger to public safety
2. urgent work to be performed on the machinery, equipment or installation to avoid
serious loss which the employer would otherwise suffer
3. abnormal pressure of work due to special circumstances, where the employer cannot
ordinarily be expected to resort to other measures
4. prevent serious loss of perishable goods
5. nature of work requires continuous operation for seven days a week
6. work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work depends upon them TREY 74
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ART 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK
NOTE: worked = regular wage plus 30% premium pay not worked
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ART 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK
1. 200% of the basic wage provided, he works on that day and was present or on
leave with pay on the preceding workday. If on leave without pay, rate still applies
if leave is authorized.
2. 400% if he worked – as per DOLE Memo if there are 2 regular holidays in one day
eg. April 9 and Good Friday. Provided the employee worked on the day prior to
the regular holiday or on leave with pay or on authorized absence.
3. If there are two succeeding holidays eg., Maundy Thursday and Good Friday, the
employee must be present the day before the scheduled regular holiday to be
entitled to compensation to both otherwise, he must work on the first holiday to
be entitled to holiday pay on the second regular holiday. TREY 80
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ART 95. RIGHT TO SERVICE INCENTIVE LEAVE
☛ SERVICE INCENTIVE LEAVE (SIL)
- Five (5) days leave with pay for every employee who has rendered at least one (1) year
of service.
☛ BUT DOES NOT APPLY TO THOSE WHO ARE:
already enjoying the said benefits; or enjoying vacation leave with pay for at least 5 days
those employed in establishments regularly employing less than 10 employees those employed
in establishments exempted from granting this benefit by the Secretary of Labor.
☛ ONE (1) YEAR OF SERVICE.
- service within 12 months, whether continuous or broken, reckoned from the date the
employee started working including authorized absences and paid regular holidays unless the
number of working day in the establishment as a matter of practice or policy, or provided in the
employment contract is less than 12 mos.
- SIL is commutable i.e., convertible to cash- the cash equivalent is aimed primarily at
encouraging workers to work continuously and with dedication to the company. TREY 81
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ART 96. SERVICE CHARGES
☛ TO BE DISTRIBUTED TWICE A MONTH AND AT THE RATE OF:
1.85% for all covered employees to be equally distributed
among them
2.15% for management (may answer for losses and breakages
or distributed to management) - If collection of service
charges is abolished, the share of covered employees shall be
considered integrated in their wages on the basis of the
average monthly share of each employee for the past 12
months immediately preceding the abolition.
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ART 96. SERVICE CHARGES
☛ TO BE DISTRIBUTED TWICE A MONTH AND AT THE RATE OF:
1.85% for all covered employees to be equally distributed
among them
2.15% for management (may answer for losses and breakages
or distributed to management) - If collection of service
charges is abolished, the share of covered employees shall be
considered integrated in their wages on the basis of the
average monthly share of each employee for the past 12
months immediately preceding the abolition.
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TITLE II
WAGES
CHAPTER I
PRELIMINARY MATTERS TREY 84
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ART 97. DEFINITION
☛ WAGE
- the remuneration or earnings, however designated,
capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece, or commission basis or other
method or calculating the same, which is payable by an employer
to an employee under a written or unwritten contract of
employment for work done or to be done or for services
rendered or to be rendered and includes the fair and reasonable
value of board, lodging, or other facilities customarily furnished
by the employer to the employee. TREY 85
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ART 97. DEFINITION
FAIR DAY’S WAGE FOR A FAIR DAY’S LABOR
- if there is no work performed by the employee, there can be no
wage or pay unless the laborer was able, willing, and ready to work but
was prevented by management or was illegally locked out, suspended or
dismissed.
WAGE SALARY
compensation for manual labor denotes higher degree of
employment
Not subject to execution subject to execution (Gaa vs.
CA)
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ART 97. DEFINITION
☛ FACILITIES
– shall include all articles or services for the benefit of the employee or
his family but shall not include tools of the trade or articles or services primarily
for the benefit of the employer or necessary to the conduct of the employer’s
business.
FACILITIES SUPPLEMENTS
- Are items of expense necessary for the laborer’s and his family’s existence and
subsistence - Constitute extra remuneration or special privileges or benefits
given to or received by the laborers over and above their ordinary earnings
wages - part of the wage - independent of the wage - deductible from the wage -
not wage deductible
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ART. 98. APPLICATION OF TITLE
☛ This Title shall not apply to the following:
1. household or domestic helpers
2. homeworkers engaged in needle-work
3. workers employed in any establishment duly
registered with the National Cottage
Industry
4. Workers in any duly registered cooperatives
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CHAPTER II
MINIMUM WAGE
RATES
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ART 100. PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS
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ART 100. PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS
☛ BONUS
- A supplement or employment benefit given under certain
conditions, such as success of the business or greater production
or output. As a rule, it is an amount granted voluntarily to an
employee for his industry and loyalty which contributed to the
success and realization of profits of the employer’s business.
Therefore, from a legal point of view, it is not a demandable and
enforceable obligation. Unless, it was promised to be given
without any conditions imposed for its payment, as such, it is
deemed part of the wage.
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ART 100. PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS
MINIMUM WAGE - The lowest wage rate fixed by law that an employer can pay his
employees.
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ART. 123 WAGE ORDER
☛ WAGE ORDER
– an order issued by the Regional Board whenever the conditions in the region so
warrant after investigating and studying all pertinent facts and based on the standards
and criteria prescribed by the LC, the Regional Board proceeds to determine whether to
issue the same or not.
☛ EFFECTIVITY of a wage Order
– it shall take effect after 15 days from the its complete publication in at least one
newspaper of general circulation in the region.
☛ FREQUENCY of a wage order
- Wage Order issued by the Board may not be disturbed for a period of 12 months from
its effectivity and no petition for wage increase shall be entertained during said period.
EXCEPTION: When Congress itself issues a law increasing wages.
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ART 124. STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING
☛ FACTORS FOR DETERMINING REGIONAL MINIMUM WAGE RATES
1. Demand for living wages;
2. Wage Adjustment vis-a vis the consumer price index;
3. Cost of living and changes or increases therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in the countryside;
6. Improvements in standards of living;
7. Prevailing wage levels;
8. Fair Return of the capital invested and capacity to pay of employers;
9. Effects on Employment Generation and Family Income;
10.Equitable Distribution of Income & Wealth along the imperatives of economic and social
development TREY 99
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ART 124. STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING
☛ WAGE DISTORTION
- situation where an increase in prescribed wage
rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary
rates between and among employee groups in an
establishment as to effectively obliterate the distinctions
embodied in such wage structure based on skills, length
of service or other logical bases of differentiation.
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ART 124. STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING
☛ CORRECTING WAGE DISTORTION
Unionized Establishment
1. Negotiate to correct the distortion.
2. Any dispute arising therefrom should be resolved through grievance procedure under
their CBA.
3. If the dispute remains unresolved, through voluntary arbitration.
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ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER BENEFITS
- Under Art. 129, the Regional Director is empowered through
summary proceeding and after due notice, to hear and decide
cases involving recovery of wages and other monetary claims
and benefits, including legal interests.
☛ REQUISITES :
1. The claim is presented by an employee or person employed
in domestic or household service or househelper;
2. The claim arises from employer-employee relations;
3. The claimant does not seek reinstatement; and
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ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER BENEFITS
4. The aggregate money claim of each employee or househelper does not
exceed P5, 000.00
- Access to employer’s records and premises
→ the day/night whenever work is being undertaken therein
→ includes the right to copy therefrom, to question any employee &
investigate any fact, condition or matter which may be necessary to determine
violations or which may aid in the enforcement of the Code and of any labor
law, wage order, or rules and regulations
- Issue Compliance Orders (ART. 128)
→based on the findings of labor employment and enforcement officers or
industrial safety engineers made in the course of inspection TREY 106
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ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER BENEFITS
- Issue Writs of Execution (ART. 128)
→for the enforcement of orders
→except in cases where the employer contests the findings of the said labor officers and raises
issues supported by documentary proofs which were not considered in the course of inspection.
- Order Work Stoppage/Suspension of Operations
→ when non-compliance with the law or implementing rules and regulations poses grave &
imminent danger to the health and safety of the workers in the workplace.
- Conduct Hearings within 24 hours
→ to determine whether an order for stoppage of work/suspension of operations shall be lifted
or not.
→ employer shall pay the employees concerned their salaries in case the violation is attributable
to his fault
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ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER BENEFITS
- Require employers to keep and maintain Employment Records –
→ as may be necessary in aid of his visitorial and enforcement powers ART 128 ART 129
officers and raises issues supported by documentary proofs which were not considered in the
course of inspection.
- Order Work Stoppage/Suspension of Operations
→ when non-compliance with the law or implementing rules and regulations poses grave &
imminent danger to the health and safety of the workers in the workplace.
- Conduct Hearings within 24 hours
→ to determine whether an order for stoppage of work/suspension of operations shall be
lifted or not. → employer shall pay the employees concerned their salaries in case the
violation is attributable to his fault
- Require employers to keep and maintain Employment Records –
→ as may be necessary in aid of his visitorial and enforcement powers ART 128 ART TREY
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ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER BENEFITS
1. Visitorial and enforcement power of the Secretary of Labor /his duly authorized representatives
exercised through routine inspections of establishments
1. Power of the Regional Director or any duly authorized hearing officers to hear and decide matters
involving the recovery of wages, upon complaint of any interested party
2. requires the existence of E-E Relationship
2. E-E relationship not necessary since it should not include a claim for reinstatement
3. No limit as to amount of claim
3. Aggregate claim of each complainant does not exceed P5,000
4. Appeal is with Sec. of Labor ; period of appeal is 10 calendar days
4. Appeal with NLRC; period of appeal is 5 calendar days
5. Person exercising the power is the Sec. Of Labor or any of his duly authorized representatives who
may or may not be a regional director
5. The power is vested upon a regional director or any duly authorized hearing officer of theTREY
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TITLE III
WORKING CONDITIONS FOR
SPECIAL GROUP OF
EMPLOYEES
CHAPTER I EMPLOYMENT
OF WOMEN
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ART 130. NIGHTWORK PROHIBITION
- No woman , regardless of age, shall be employed or
permitted or suffered to work, with or without
compensation in any :
1.Industrial undertaking between 10PM-6AM
2.Commercial/Non-Industrial undertaking between 12 MN-
6AM
3.Agricultural undertaking at nighttime unless, she is given
a period of rest of not less than 9 consecutive hours
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ART 131. EXCEPTIONS
1. Actual/Impending Emergencies caused by serious accident, flood, typhoon, epidemic or
other disasters or calamity, to prevent loss of life or property, or in cases of force majeure
or imminent danger to public safety
2. Urgent work to be performed on machineries, equipment or installation, to avoid serious
loss
3. Work is necessary to prevent serious loss of perishable goods
4. Where she holds a responsible position of managerial/technical nature/engaged to
provide health and welfare service
5. Nature of the work requires the manual skill and dexterity of women workers & cannot
be performed with equal efficiency by male workers
6. Where women workers are immediate family members of the family operating the
establishment or undertaking
7. Analogous cases TREY
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ART 132. FACILITIES FOR WOMEN
☛The Secretary of Labor may require employers to:
1.Provide seats proper for women and permit them to use the seats
when they are free from work or during office hours provided the
quality of the work will not be compromised;
2.To establish separate toilet rooms and lavatories for men and
women and provide at least a dressing room for women;
3.To establish a nursery in the establishment;
4.To determine appropriate minimum age and other standards for
retirement or termination in special occupations such as those of
flight attendants and the like TREY 113
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ART. 133 MATERNITY LEAVE BENEFITS
☛ MATERNITY LEAVE UNDER THE SSS LAW
A female member, who need not be legally
married, who has paid for at least three (3) monthly
contributions in the 12-month period immediately
preceding the semester of her childbirth or
miscarriage shall be paid a daily maternity benefit
equivalent to 100% of her average daily salary credit
for 60 days or 78 days, in case of caesarian delivery.
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ART. 133 MATERNITY LEAVE BENEFITS
REQUISITES :
1. Employee notified her employer of her pregnancy of the probable date of her childbirth
2. Full payment be advanced by the employer within 30 days from the filing of the maternity leave
application
3. That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits
4. That the maternity benefits shall be paid only for the first four (4) deliveries or miscarriages
5. That the SSS shall immediately reimburse the employer of 100% of the amount of maternity benefits
advanced to the employee by the employer
6. That if an employee member should give birth or suffer a miscarriage without the required contributions
having been remitted for her by her employer to the SSS, or without the latter having been previously
notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages
equivalent to the benefits which said employee member would otherwise have been entitled to.
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ART. 133 MATERNITY LEAVE BENEFITS
- ART 133 (b) subsists, i.e., the maternity leave shall be extended
without pay on account of illness medically certified to arise out of
the pregnancy, delivery, abortion, or miscarriage, which renders the
woman unfit for work , unless she has earned unused leave credits
from which such extended leave may be charged.
☛ LIMIT OF THE BENEFIT: Applies only for the first four deliveries
irrespective of who is the father of the children, and may not be
availed of in addition to sickness benefit under the Social Security
program.
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ART. 133 MATERNITY LEAVE BENEFITS
☛ RA 8187 (PATERNITY LEAVE)
- This law grants paternity leave of seven day with full pay to all married male employees in the private and
public sectors.
- It is available only for the first four deliveries of the legitimate spouse with whom the husband is
cohabiting.
DELIVERY – includes childbirth, miscarriage, or abortion.
Purpose: to enable the husband to lend support to his wife during the period of recovery and/or in the
nursing of the newly born child.
☛ CONDITIONS :
1. he is an employee at he time of the delivery of his child;
2. he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage;
3. he has applied for paternity leave ; and
4. his wife has given birth or suffered a miscarriage
- Paternity leave, if not availed of, is not convertible to cash. TREY 117
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ART. 133 MATERNITY LEAVE BENEFITS
WIFE
- refers to the lawful wife which means the woman who is
legally married to the male employee concerned.
TITLE I
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
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ART 156. FIRST-AID TREATMENT
☛ FIRST-AID TREATMENT
– adequate, immediate, and necessary medical and dental
attention or remedy given in case of injury or illness suffered by
a worker during employment, irrespective of whether or not
such injury or illness is work-connected, before a more extensive
medical and/or dental treatment can be secured.
☛ FIRST AIDER
– any person trained and duly certified as qualified to administer
first aid by the Phil. National Red Cross or by any other
organization accredited by the former. TREY 132
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TITLE II
EMPLOYEES’ COMPENSATION
AND
STATE INSURANCE FUND
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☛ WORKMEN’S COMPENSATON
- A general and comprehensive term applied to those laws
providing for compensation for loss resulting from the injury,
disablement or death of a workman through industrial accident,
casualty or disease.
☛ COMPENSATION
- Money relief afforded according to the scale established
under the statute as differentiated from compensatory damages
recoverable in an action at law for breach of contract or for tort.
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BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
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ART 211. DECLARATION OF POLICY
☛ LABOR RELATIONS LAW
- Concerned with the stabilization of relations of
employer and employees and seeks to forestall and
adjust grievances through
- the encouragement of collective bargaining and the
settlement of labor disputes through conciliation,
mediation and arbitration.
- Absent an employer-employee relation, there is no
labor relations to speak of.
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ART 211. DECLARATION OF POLICY
☛ PARTIES TO LABOR RELATIONS CASES:
1. The employee’s organization,
2. management, and
3. the public
- The public is always to be considered in disputes between labor and capital, and it
has been held that the rights of the general public are paramount.
- Labor relations policy under the LC is embodied in Section 3 Article XIII of the 1987
Constitution which guarantees to all workers their right among others to
selforganization, collective bargaining and negotiations, peaceful land concerted
activities including the right to strike in accordance with law, and to participate in
policy and decision making processes affecting their rights and benefits as may be
provided by law.
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ART. 212. DEFINITIONS
☛ LABOR DISPUTE INCLUDES:
1.any controversy or matter concerning terms or
conditions of employment or
2.the association or representation of persons in
negotiating, fixing, maintaining, charging or arranging
the terms and conditions of employment, regardless of
whether the disputants stand in the proximate relation
of employer and employee.
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ART. 212. DEFINITIONS
☛ EMPLOYEE
- shall not be limited to the employees of a particular
employer.
- it shall include any individual whose work has ceased: as a
result of or in connection with any current labor dispute; or
because of unfair labor practice
- If he has not obtained any other:
1. Substantially equivalent and
2. Permanent employment TREY 139
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