LAW — LABOR CODE

PRESIDENTIAL DECREE NO. 442

💡 A DECREE INSTITUTING A LABOR CODE, THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO
AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND
INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE

ART 1. NAME OF DECREE

This Decree shall be known as the "Labor Code of the Philippines."

Real-Life Example: If a company wants to fire someone, both the employee and employer must refer to this law to ensure
it’s done legally.

ART 3. DECLARATION OF BASIC POLICY

The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race
or creed, and regulate the relations between workers and employers.

The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure and just and
humane conditions of work.

In Simple Terms:

The government promises to protect workers and help people find jobs.

Everyone should have a fair chance to work—no discrimination allowed.

Employers and employees must treat each other fairly.

Workers can form unions, negotiate work conditions, keep their jobs if they do nothing wrong, and work in decent
conditions.

Real-Life Example: Ana is denied a job because she's a woman. Under this article, Ana can file a complaint since she’s
entitled to equal opportunity.

ART 4. CONSTRUCTION IN FAVOR OF LABOR

All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and
regulations, shall be resolved in favor of labor.

Real-Life Example: If there's a disagreement about whether a worker deserves overtime pay, and the law is unclear, the
decision should favor the worker.

ART 5. RULES AND REGULATIONS

The Department of Labor and other government agencies charged with the administration and enforcement of this Code.

Real-Life Example: If an employer doesn’t pay minimum wage, the Department of Labor can investigate and penalize the
company.

ART 6. APPLICABILITY OF AGRICULTURE WOKERS

include agricultural workers shall enjoy the rights and benefits granted by this Code to nonagricultural workers.

Farm workers have the same labor rights (like fair pay and safe working conditions) as those working in offices or
factories.

Real-Life Example: A rice farm worker is entitled to rest days and minimum wage just like a call center agent.

BOOK I (PRE EMPLOYMENT)

ART 12. STATEMENT OF OBJECTIVES
It is the policy of the State —

1. To promote and maintain a state of full employment through improved manpower training, allocation and utilization;

2. To protect every citizen desiring to work locally or overseas by securing for him the best possible terms and conditions of
employment;

3. To facilitate a free choice of available employment by persons seeking work in conformity with the national interest;

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 4. To facilitate and regulate the movement of workers in conformity with the national interest;

5. To regulate the employment of nonresident aliens;

6. To strengthen the network of public employment offices and to undertake the phasing out of private fee-charging
employment agencies; and

7. To insure careful selection of Filipino workers for overseas employment in order to protect the good name of the
Philippines abroad.

Real-Life Example: Leo wants to work in Japan. The government ensures his contract is fair before he leaves and only
allows licensed agencies to recruit him.

ART 13. DEFINITION OF TERMS

(a) "Private fee-charging employment agency" means any individual or entity engaged in the business of recruitment and
placement of workers for a fee, whether the fee is charged from the workers or from the employers or both.

Real-Life Example: A job agency in Manila helps Maria get work as a domestic helper in Hong Kong and charges her
₱10,000. That agency is a private fee-charging employment agency.

(b) "Private non-fee-charging employment agency" refers to any individual or entity engaged in the recruitment and
placement of workers free of charge, whether from the workers or from the employers or both.

Real-Life Example: A city-run job placement center helps Carlos get a job in a local factory for free. This is a non-fee-
charging employment agency.

(c) "Recruitment" refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers,
including referrals, contact services, promising employment or advertising for employment locally or abroad whether for profit
or not.

Provided, That whenever two or more persons are in any manner promised or offered employment for a fee, the individual
or entity making such offer or promise shall be deemed engaged in recruitment.

Real-Life Example: A person posts on Facebook, offering jobs abroad and collects resumes from interested applicants.
Even if they don't charge money yet, it's still considered recruitment.

“Two or more offered jobs = recruitment by law” If someone offers work to at least two people, they are officially
considered as engaging in recruitment—even if no contract is signed.

(d) "Worker" or "Employee" includes any individual employed by an employer or any person hired to perform service of any
kind for a valuable consideration, including household or domestic helpers and crew members of vessels or seamen.

Real-Life Example: Rosa is a household helper. Despite working in a private home, she is still protected as a worker under
this law.

(e) "Immigrant worker" means any person who works in a foreign country by virtue of an immigrant visa or resident permit as
distinguished from a work permit or working visa.

In Simple Terms: A Filipino who works abroad and lives there permanently, not just temporarily for a job.

Real-Life Example: Tony moved to Canada with permanent residency and works as a nurse. He is considered an immigrant
worker, not just a temporary OFW.

(f) "License" means a document issued to an individual or entity by the Department of Labor authorizing such individual or
entity to operate private fee-charging employment agency.

Real-Life Example: An agency helping Filipinos get jobs in the Middle East must first get a license from DOLE to legally
operate.

(g) "Authority" refers to the document issued to any person or entity by the Department of Labor authorizing such person or
entity to operate a private non-fee-charging employment agency.

Real-Life Example: A Catholic charity that helps people find jobs for free must still get an "authority" from DOLE to legally
do it.

(h) "Seamen" includes all persons employed on any vessel engaged in maritime navigation.

whether they cook, clean, operate machinery, or navigate.

Real-Life Example: Joel works as a cook on a cargo ship traveling to Europe. He is considered a seaman under the Labor
Code and has special employment protections.

CHAPTER II (REGULATION OF RECRUITMENT AND PLACEMENT

ACTIVITIES)
ART 24. AUTHORITY OR LICENSE TO RECRUIT
No individual or entity may engage in the business of a private fee-charging employment agency without first obtaining a
license from the Department of Labor.

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 No individual or entity may operate a private non-fee-charging employment agency without first obtaining an authority
from the Department of Labor.

A license if they charge money.

An authority if they don’t.

Real-Life Example: A company wants to recruit nurses for hospitals in Germany. Before doing so, they must get a license
from DOLE. If a church group wants to help people find jobs for free, they need to get authority from DOLE.

ART 25. TRAVEL ANGENCIES PROHIBITED TO RECRUIT

Travel agencies are prohibited from engaging in the business of recruitment and placement of workers for overseas
employment whether for profit or not.

The Secretary of Labor shall issue rules and regulations establishing the requirements and the procedures for the issuance
of a license or authority.

Every existing authority or license to hire or recruit workers on the date of effectivity of this Code shall remain valid for the
duration indicated therein unless sooner cancelled, revoked, or suspended for cause by the Secretary of Labor.

However, said authority or license to hire or recruit may be renewed: Provided, That the holders thereof shall comply with
all applicable provisions of this Code and its implementing rules and regulations.

In Simple Terms: Travel agencies cannot also act as job placement agencies for jobs abroad. They must focus on booking
trips, not recruiting workers.

Real-Life Example: If a travel agency offers you a “work visa package” that includes finding you a job in Dubai, it’s illegal.
Only licensed recruitment agencies can do that.

ART 26. CITIZENSHIP REQUIREMENT

No license or authority to recruit or hire workers shall be issued or renewed except in favor of Filipino citizens or
corporations, partnerships or entities at least 60 percent of the authorized capital stock of which is owned and/or
controlled by Filipino citizens.

Foreigners or companies mostly owned by foreigners cannot operate a recruitment agency. Filipinos must own the
majority (at least 60%).

Real-Life Example: A company owned 80% by Americans and 20% by Filipinos wants to recruit workers for Japan. They
cannot get a license. But if it's 70% Filipino-owned, they can apply.

ART 27. CAPITALIZATION

All applicants for license to recruit and currently licensed recruiters for overseas employment are required to have a
minimum capitalization or assets in the amount of P150,000 in the case of private individuals and a paid-up capital of
P150,000 in the case of corporations, partnerships or other entities.

To be granted a license:

Private individuals need at least ₱150,000 in assets.

Corporations/partnerships need at least ₱150,000 in paid-up capital.

In Simple Terms: Only financially capable individuals or businesses are allowed to operate recruitment agencies. This is to
protect jobseekers from scams.

Real-Life Example: Lito wants to open a recruitment agency to send welders to the Middle East. He must show he has at
least ₱150,000 in capital or assets before he can apply for a license.

ART 28. NONTRANSFERABILITY OF LICENSE OR AUTHORITY

No license or authority shall be issued directly or indirectly by any person other than the one in whose favor it was issued
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.

Any transfer of business address, appointment or designation of any agent or representative including the establishment of
additional offices anywhere shall be subject to the prior approval of the Department of Labor.

In Simple Terms: You can't let someone else use your recruitment license, or move offices or appoint a representative
without permission from the Department of Labor.

Real-Life Example: ABC Recruitment gets a license to operate in Makati. They cannot suddenly open a new office in Cebu
or let a friend use the license unless DOLE approves it first.

ART 29. LICENSE FEE

Any private fee-charging employment agency applying for license or renewal thereof under this Code shall file a written
application with the Secretary of Labor.

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 Recruitment agencies must pay yearly to legally keep recruiting workers:

₱2,000/year for local job placement licenses.

₱6,000/year for overseas job placement licenses.

Real-Life Example: An agency helping Filipinos find jobs in Canada pays ₱6,000 annually to DOLE to keep their license
active.

ART 30. BOND

Any private fee-charging employment agency shall post a cash bond

For overseas employment: ₱10,000 cash bond + ₱50,000 surety bond

For local employment: ₱5,000 cash bond + ₱25,000 surety bond

The Secretary of Labor shall have the exclusive power to determine, decide, order, or direct payment from or application of
the cash and surety bond for any claim or injury covered and guaranteed by the bond.

Real-Life Example: A recruitment agency fails to send its recruited workers to Korea and refuses refunds. DOLE can use
the agency’s bond to pay back the workers.

ART 31. ALLOWABLE FEE

Any person applying with a private fee-charging employment agency for employment assistance shall not be charged any
fee until he has obtained employment through its efforts or has actually commenced employment. Such fee shall be
always covered with approved receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.

In Simple Terms: You only pay a recruitment agency after they’ve helped you get a job and you’ve started working. They
must also give you an official receipt.

Real-Life Example: Ben applies for a job as a caregiver in Taiwan. The agency can only collect fees from him after he signs
a contract and leaves for work.

ART 32. MANDATORY REMITTANCE OF FOREX EARNINGS

It shall be mandatory for all contract workers abroad to remit a portion of their foreign exchange earnings to their
families, dependents, and/or beneficiaries in the country in accordance with rules and regulations prescribed by the
Secretary of Labor in consultation with the committee on mandatory remittance of foreign exchange earnings established
by the President under Letter of Instruction No. 90, dated June 16, 1973.

OFWs (Overseas Filipino Workers) must send part of their earnings back to their families in the Philippines, as required
by DOLE.

Real-Life Example: Jenny works in Qatar. The government requires her to send a portion of her salary home every month,
ensuring her family benefits from her work abroad.

ART 34. SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY

The Secretary of Labor shall have the power to suspend or cancel any license or authority to recruit employees for
overseas employment for violation of rules and regulations issued by the Secretary of Labor, the Overseas Employment
Development Board, and the National Seamen Board, or for violations of the provisions of this and other Presidential
decrees, the Revised Penal Code, the Anti-Dummy Law, general orders and letters of instruction.

Real-Life Example: An agency is caught overcharging applicants and sending them to unsafe jobs. DOLE cancels their
license, and they can no longer operate legally.

ART 35. FOREIGN SERVICE ROLE/ PARTICIPATION

To provide ample protection to Filipino workers abroad, Philippine labor attaches or labor reporting officers duly
designated by the Secretary of Labor through the Department of Foreign Affairs or any Philippine diplomatic or consular
officials concerned shall, even without prior instruction or advice from the home office:

a. Provide counselling assistance to all Filipino workers within their jurisdiction on all matters arising out of employment;

b. Ensure that Filipino workers are not exploited and discriminated against;

Real-Life Example: Ramon, an OFW in Dubai, hasn’t been paid for three months. He goes to the Philippine consulate,
where the labor attaché helps him file a complaint and recover his wages.

Who is covered under the Labor Code?

REGULAR EMPLOYEES
Those who perform activities necessary to the usual business operations of the employer, signifying a long-term
relationship.

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 These employees do work that is essential to the daily operation of the company. They are considered permanent
workers and are entitled to full benefits and job security.

Real-Life Example: Grace works as a cashier at a grocery store. Since her job is needed every day and part of the
store’s main operations, she becomes a regular employee after her probation period. She now has the right to stay
employed unless there's a valid reason for termination.

REGULAR EMPLOYMENT
This type signifies a permanent employment status, where an employee performs tasks necessary to the business's
operation. The Labor Code ensures that regular employees are entitled to full benefits and job security, including the
right to unionize and receive employer-contributed social, health, and welfare benefits.

This is permanent employment. The job is part of the employer's regular business, and the employee is expected to
stay unless there's a valid legal reason for dismissal.

Key Features:

Full labor rights (SSS, PhilHealth, Pag-IBIG, etc.)

Security of tenure (you can’t be fired without just cause)

Eligible for leaves and 13th-month pay

Real-Life Example: Jessa works as a full-time nurse in a hospital. Her tasks—caring for patients—are central to the
hospital’s operations. After her 6-month probation, she becomes a regular employee with regular employment status.

PROJECT EMPLOYEES
Individuals with fixed employment for a specific project, of which the employer specifies the duration and scope at the
engagement time.

In Simple Terms: These workers are hired to complete a specific project. Their job ends when the project is done.

Real-Life Example: Rico is hired by a construction firm to help build a condominium. His contract clearly says the job
ends when the building is completed. He is a project employee.

PROJECT EMPLOYMENT
Employers hire project employees for specific projects or undertakings with predetermined durations.

The employment automatically ends at the project's conclusion.

While project employees receive the same benefits as regular employees during their project's term, they lack tenure
security after the project finishes.

You’re hired for a specific project with a clear end date or target. Your employment automatically ends once the project
is done.

Key Features:

No job security after the project ends

Entitled to the same benefits as regular employees during the project

Real-Life Example: Leo is hired as an electrician for a road-widening project. His contract ends when the project is
finished. This is project employment.

SEASONAL EMPLOYEES
Workers employed for tasks or activities that are seasonal in nature, and their employment is limited to the duration of
the season.

Real-Life Example: Liza works at a pineapple farm only during harvest months (June to August). She is a seasonal
employee. She might be rehired every year, but only during the harvest season. .

SEASONAL EMPLOYMENT
Similar to project employment, employers hire seasonal employees for work that aligns with the seasonality of the
operation, and the employment lasts only as long as the season does.

One may consider these employees as regular employees, but this status lasts only during the season of their
employment.

You’re hired for work that happens only during specific times of the year.

Key Features:

Valid only during the "season"

May be considered regular during the season if rehired continuously

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 Real-Life Example: Ella is hired by a sugarcane plantation only during harvest time. Every year, she’s re-hired for 3
months. This is seasonal employment

CASUAL EMPLOYEES
Those engaged in work that is not part of the employer's regular business and is only occasional or temporary.

CASUAL EMPLOYMENT
involves hiring workers for tasks not typically essential to the employer's main business.

Employers may consider a casual employee as a regular employee with respect to the performed activity if they work
for at least one year, continuously or intermittently.

The job is not related to the usual business of the employer. It's short-term or occasional work.

Key Features:

No regular status unless employed continuously or intermittently for 1 year

Not entitled to full benefits unless regularized

Real-Life Example: Marco is hired to clean storage areas at a school during the summer break. It’s not part of the
school’s regular teaching business. This is casual employment.

⚠️ Important: If a casual employee is retained for at least one year, they may become regular
for that task.

PROBATIONARY EMPLOYEES
Employees on trial during a given period, allowing the employer to determine their suitability for regular employment
based on standards made known to the employee at the time of engagement.

Additionally, the Labor Code provides specific provisions for domestic workers, known locally as "Kasambahay,"
covering their rights and welfare distinctly.

In Simple Terms: These are new employees who are being tested if they are fit for regular employment. They are
usually under a trial period of 6 months.

Real-Life Example: Anna is hired as a customer service agent and given a 6-month probationary contract. If she meets
the standards (like attendance and performance), she can become a regular employee after that period.

Important: The standards must be clearly explained to the employee when hired.

FIXED PERIOD EMPLOYMENT

Also known as term or contract employment, this arrangement involves an employee agreeing to provide services for a
specific period.

This type of employment remains valid only when based on the intrinsic quality of the work and not aimed at
circumventing workers' tenure rights.

For modern, medium-sized businesses in APAC with a progressive mindset, recognizing these employment types and
their respective rights, benefits, and limitations is key to managing a happier team.

Proper classification avoids legal pitfalls and fosters a better company culture by ensuring employee engagement under
fair and clear terms.

In Simple Terms: These workers are hired with a set start and end date. This is allowed only if the nature of the job
justifies the time limit.

Real-Life Example: Juan signs a 3-month contract to be a tour guide during the summer season. His job is seasonal
and time-bound, making him a fixed-term employee. However, if the company keeps renewing short contracts just to
avoid making him regular, it may be illegal.

Kim signs a 5-month contract as a dance instructor at a summer arts camp. Her job exists only during summer, so
this fixed period employment is allowed.

⚠️ But if Kim is rehired repeatedly with short breaks, that could be a scheme to avoid
regularizing her—illegal under labor law.

MINIMUM WAGE
The Labor Code of the Philippines 2024 requires employers to pay a minimum wage for workers, which varies across
regions to account for the differential cost of living.

Employers must comply with the Philippines minimum wage rates, ensuring that employees receive fair compensation for
their labor.

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 Wages must be paid in legal tender and at regular intervals not exceeding 16 days.

Payment in checks or through bank accounts is allowed provided employees consent.

Deductions are allowed only if authorized by law (e.g., SSS, PhilHealth, Pag-IBIG contributions, withholding tax) or by the
employee (e.g., union dues).

Real-Life Example: Jon works in Manila. The minimum daily wage in NCR is ₱610 (as of recent wage orders). His employer
must pay at least this amount per day of work, in cash or through his bank account (with his agreement).

1. Non-Diminution of Benefits:
Employer-established benefits, whether by practice or policy, cannot be reduced or withdrawn unilaterally once vested.

If a company has already been giving benefits (e.g., allowances, bonuses) regularly, it cannot take them back or reduce
them without legal basis.

Real-Life Example: Carla’s employer has been giving ₱1,000 monthly rice allowance for the past 3 years. The company
suddenly stops without valid reason. This is a violation of the non-diminution rule.

2. Wage Distortions:
If a mandated wage increase results in "wage distortion" (unequal pay differentials among employee categories),
employers and employees must negotiate to correct it.

If a government-mandated wage increase makes the pay gap between ranks unfair (e.g., entry-level staff earn almost the
same as seniors), it must be corrected through negotiations.

Real-Life Example: New staff are raised to ₱610/day after a wage order, while old staff with more experience earn
₱620/day. Management and the union must negotiate a fair adjustment to avoid wage distortion.

3. No Wage Discrimination:
No gender-based or similar discrimination is allowed in fixing wage rates.

If a male and female warehouse worker do the same job but the male is paid more just because he’s a man, that’s wage
discrimination—and it’s illegal.

4. Service Charges:
In hotels, restaurants, and similar establishments that collect service charges, 85% must be distributed to rank-and-file
employees, with 15% retained by management to cover losses/breakages.

Real-Life Example: At a restaurant, the 10% service charge added to the bill must be shared with the waiters, cooks, and
dishwashers—only a small part goes to the company.

WORKING HOURS
Standard working hours are set at eight hours per day, for a total of 48 hours per week.

Employers must compensate employees at a higher rate for hours worked beyond the standard, known as overtime pay.

NIGHT SHIFT DIFFERENTIAL

Employees who work between 10 PM and 6 AM are entitled to a night shift differential of at least 10% of their regular
wage.

This provision ensures fair compensation for workers contributing labor during less desirable hours.

Real-Life Example: Mark is a security guard working from 10 PM to 6 AM. His regular rate is ₱100/hour, but during night
hours, he must be paid at least ₱110/hour.

HOURS OF WORK AND WORK ARRANGEMENTS

1. Normal Hours of Work:
The normal hours of work shall not exceed eight (8) hours per day.

Beyond eight hours is considered overtime and must be compensated accordingly.

Real-Life Example: Alvin’s shift is 9 AM to 5 PM, including a one-hour lunch break. He works 8 hours per day, which is
the legal limit. If he stays beyond 5 PM, he should get overtime pay.

2. Overtime Pay:
Work beyond 8 hours is paid extra:

+25% of hourly rate for regular days

+30% if the overtime falls on a holiday or rest day

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 Real-Life Example: Lara earns ₱100/hour. If she works overtime on a regular workday, she should be paid ₱125/hour for
the extra hours.

3. Rest Periods and Meal Breaks:

Employees must have a one-hour daily meal break (non-compensable) after not more than five hours of continuous
work.

Short rest periods (coffee breaks) of 5-20 minutes are considered compensable working time.

4. Weekly Rest Day:

Generally, employees are entitled to at least one rest day for every six consecutive working days, preferably Sunday
unless otherwise specified by nature of the job.

For religious reasons, employees can request a different rest day.

5. Compressed Workweeks and Flexible Arrangements:

Allowed by DOLE through implementing guidelines, ensuring that total working hours per week remain the same and
that no diminution of benefits occurs.

Employees can work longer on some days (e.g., 10 hours) and shorter on others, as long as total weekly hours don’t
exceed legal limits and there’s no loss of benefits.

Real-Life Example: XYZ Company implements a 4-day workweek (10 hours/day, Monday to Thursday). Employees still
get the same weekly salary and benefits—this is allowed if approved by DOLE.
HOLIDAYS, LEAVES, AND OTHER BENEFITS
1. HOLIDAYS:
Regular Holidays: Employees receive 100% of their daily wage even if not required to work.

Work on a regular holiday entitles them to at least double the daily wage. (200%)

Special Non-Working Days: On these days, the "no work, no pay" principle applies unless there is a favorable company
policy or collective bargaining agreement (CBA).

If worked, pay is usually at 130% of the daily rate.

2. Service Incentive Leave (SIL):

After one year of service, an employee is entitled to at least five (5) days paid SIL per year.

If unused, it is convertible to cash at the end of the year.

Real-Life Example: Mara has worked for 2 years and hasn’t used her SIL. She gets 10 days' worth of salary in cash
when she resigns or at the end of the year.

Note: SIL does not apply to certain employees (e.g., government workers, managerial staff,
field personnel under certain conditions).

3. REST DAYS
The Labor Code guarantees employees a minimum of 1 rest day after every six consecutive workdays.

This provision enables them to rest, recover, and allocate time for personal activities or spending time with family,
thereby helping to prevent employee burnout.

4. Maternity & paternity leave

Female employees are entitled to maternity leave benefits, while male employees can avail of paternity leave,
supporting parents in balancing their work and family responsibilities.

Maternity Leave (RA 11210)

Female workers are entitled to 105 days paid leave for childbirth, with optional 30 more days unpaid.

Solo mothers get 15 days paid.

Applicable whether the birth is normal or cesarean.

for cases of miscarriage or emergency termination of pregnancy, sixty (60) days maternity leave with full pay shall
be granted.

Paternity Leave (RA 8187)

Fathers get 7 days paid leave for the first four deliveries of their legal wife or common-law partner for the first four
deliveries of their legitimate spouse.

5. PARENTAL LEAVE

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 In addition to maternity and paternity leave, the law allows qualified solo parents to take parental leave, acknowledging
the unique challenges single-parent families face.

6. 13th Month Pay

Employers must give their employees a 13th-month pay, equal to 1/12 of the total basic salary an employee earns
within a calendar year, and pay it on or before December 24th each year.

This practice serves as a meaningful way to recognize and reward employees for their hard work and dedication
throughout the year, boosting employee morale and fostering a positive work environment.

Real-Life Example: If Angelo earned a total of ₱240,000 in 2024, his 13th-month pay should be ₱20,000, paid before
Christmas.

7. Parental Leave for Solo Parents (R.A. 8972):

Solo parents as defined by law are entitled to seven (7) working days of parental leave annually after one year of
service

8. Leave for Victims of Violence Against Women and their Children (VAWC Leave):
Women employees who are victims of physical, sexual, psychological, or economic violence may take up to ten (10)
days of leave.

9. Magna Carta of Women (R.A. 9710) Special Leave:

Women who undergo surgery due to gynecological disorders are entitled to a special leave benefit of two months with
full pay.

Real-Life Example: Maya, an office worker, experiences domestic abuse. She informs HR and provides a protection
order. She’s entitled to 10 days of VAWC leave to attend legal proceedings or recover emotionally.

10. Other Leaves and Benefits:

Company policies, CBAs, and special laws may grant additional leaves (e.g., bereavement leave, study leave, special
leave for senior citizens or persons with disabilities).

Real-Life Example: Carmela’s father passes away. Her company policy allows 3 days of bereavement leave, which is
not required by the Labor Code but is granted as a company benefit.

SPECIAL LEAVES FOR WOMEN

Female employees are entitled to special leaves for reasons related to their health and safety, such as cases of
gynecological disorders, provided that they have rendered at least six months of continuous aggregate employment.

Women undergoing surgery due to gynecological conditions are entitled to 2 months of full-pay leave, provided they have
at least 6 months of service in the last 12 months.

Real-Life Example: Liza has a hysterectomy. She submits medical documents to her employer. She’s granted 60 days of
paid special leave.

Service incentive leave

Employees who have rendered at least one year of service are entitled to a yearly service incentive leave of five days
with pay.

For businesses in the APAC region striving to cultivate a progressive company culture, adherence to these provisions is
about valuing employee welfare and promoting a supportive and equitable work environment.

Understanding and implementing these key provisions of the Labor Code of the Philippines 2024 can significantly
contribute to fostering happier, more productive teams.

SPECIAL GROUPS OF EMPLOYEES

1. Women:
Additional protections include maternity benefits, prohibition of discrimination in wages, and safe conditions of work.

Night work prohibitions have largely been removed, but OSH measures must be strictly observed.

No discrimination in wages, hiring, or promotion based on gender.

Safe working conditions especially for reproductive health.

Maternity leave, special leave for gynecological issues, and protection against abuse or harassment.

Real-Life Example: Carla works in a garment factory. She becomes pregnant and is given 105 days of maternity leave.
The employer cannot fire her for being pregnant or force her to resign.

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 Note: Night work prohibitions for women have mostly been lifted, but employers must still
ensure the safety and health of women working night shifts.

2. Minors:
Employment of children is strictly regulated by R.A. 9231.

Minimum age for employment is generally 15, with special conditions for children’s participation in public entertainment
or family undertakings.

Children below 15 can work only under these conditions:

Work is part of a family business or public entertainment.

It does not endanger their life or morals.

With parental consent and a work permit from DOLE.

Children below 18 are banned from hazardous jobs.

Real-Life Example: 13-year-old Josh is cast in a TV commercial. His parents apply for a permit and ensure his schooling
continues. This is legal child employment under the law.

⚠️ Illegal: Hiring a 14-year-old to do construction or farm work under the sun for long hours.
3. Domestic Workers (Kasambahays):
Protected by the Batas Kasambahay (R.A. 10361) which sets minimum wage, daily rest periods, weekly rest days, 13th
month pay, leave benefits, and SSS, PhilHealth, Pag-IBIG coverage.

Real-Life Example: Aling Nena hires Yaya Maricel to care for her toddler. Maricel is entitled to 1 rest day a week, must
receive the regional minimum wage, and is covered under Batas Kasambahay for health and social benefits.

4. Agricultural Workers:
Subject to minimum wage but may have different work arrangement norms.

Certain piece-rate systems (pakyaw or takay) must still meet minimum standards.

Real-Life Example: Juan harvests sugarcane by contract. He is paid by the kilo (pakyaw), but his pay must still meet the
minimum equivalent for hours worked. He also deserves rest days and leave benefits if qualified.

Special Group Special Protection They Receive

Maternity leave, safe workplaces, no

Women
discrimination

Minors Age limits, work permits, education ensured

Kasambahays Minimum wage, written contracts, benefits

Agricultural Minimum wage (even by output), rest days,

Workers benefits

TERMINATION FOR JUST CAUSE

This refers to termination initiated by the employer due to actions of the employee that constitute a serious violation of
company rules or standards.

Examples include habitual neglect of duties, willful breach of trust, commission of a crime against the employer or any
immediate family member, and other similar cases.

The process requires due notice to the employee, providing an opportunity to explain or defend their actions.

The employer has a valid reason related to the worker’s misconduct or poor performance.

Real-Life Example: Marvin, a warehouse worker, is caught stealing company items. After an investigation and proper
hearings, he is terminated for just cause(serious misconduct).

TERMINATION FOR AUTHORIZED CAUSE

This type of termination is due to operational requirements of the business such as installation of labor-saving devices
(e.g., automation), redundancy (your job is no longer necessary), retrenchment to prevent losses, closure or cessation
of operation, and disease or illness of the employee that risks the health of the workforce.

In such cases, the employer must give both the employees and the Department of Labor and Employment written notice
at least 30 days before the termination takes effect, along with the appropriate separation pay as the law mandates.

The termination is not the employee’s fault but is due to the company’s operational decisions.)

Real-Life Example: A call center in Makati is downsizing and removes 30 positions due to declining contracts. One of the
agents, Paolo, is let go with 30 days' notice and paid separation pay. This is a redundancy case, a valid authorized cause.

LAW — LABOR CODE 10

 TERMINATION BASED ON SERIOUS DISEASES OR HEALTH CONDITIONS
When an employee cannot perform their duties due to a serious illness, the employer has the right to terminate
employment to maintain operational productivity and protect the wellbeing of other employees.

The Labor Code requires a medical certificate to support the termination decision, stating that the disease remains
incurable within six months despite proper medical treatment.

The employee is entitled to separation pay in accordance with the provisions of the Labor Code of the Philippines 2024.

💡 Navigating the termination process and notice periods with fairness, compassion, and legality is paramount for
fostering a better company culture and growing productive teams.

Adhering to the Labor Code's stipulations on termination reinforces your company's commitment to ethical business
practices and respect for individual rights.

Cause of Termination Separation Pay

1 month pay or 1 month per year of service, whichever is

Redundancy
higher

1 month pay or ½ month per year of service, whichever is

Retrenchment / Closure
higher

Labor-saving devices Same as redundancy

Illness/Disease At least ½ month pay per year of service

Real-Life Example: Joyce worked for 6 years and was retrenched due to company downsizing. She gets ½ month x 6 = 3
months’ pay as separation pay.

LAW — LABOR CODE 11