Labor Laws and Legislations

Albert A. Dela Cruz

IV-BSBA-I

1. Discuss fully the procedure in protecting the rights of workers/employees in

accordance with the labor code and other laws.

Answer:

Rights of employees in accordance with the labor code and other laws.

The Bureau of Working Conditions, a staff department of the Department of Labor and

Employment, compiled a list of Basic Rights that every worker is entitled to. These rights

ensure the safety and health of all workers.

1. EQUAL WORK OPPORTUNITIES FOR ALL

The State shall protect labor, promote full employment, provide equal work opportunity

regardless of gender, race, or creed; and regulate relations between employees and

employers.

2. SECURITY OF TENURE

Every employee shall be assured security of tenure. No employee can be dismissed from

work except for a just or authorized cause, and only after due process.

Just cause refers to any wrongdoing committed by an employee; authorized cause refers

to economic circumstances that are not the employee’s fault.

3. WORK DAYS AND WORK HOURS

An employee must be paid their wages for all hours worked. If their work hours fall

between 10:00 p.m. and 6:00 a.m., they are entitled to night shift pay in addition to their

pay for regular work hours. If they work over eight hours a day, they are entitled to

overtime pay.

4. WEEKLY REST DAY

A day-off of 24 consecutive hours after six (6) days of work should be scheduled by the

employer upon consultation with the workers.

5. WAGE AND WAGE-RELATED BENEFITS

Wage is the amount paid to an employee in exchange for to the service that they rendered

to their employer. Wage may be fixed for a given period.

6. PAYMENT OF WAGES

Wages should be paid directly to the employee in cash, legal tender, or through a bank.

Wages shall be given not less than once every two weeks or twice within a month at

intervals not exceeding 16 days.

7. FEMALE EMPLOYEES

Women are prohibited from engaging in night work unless the work is allowed by the

following rules: industrial undertakings from 10 p.m. to 6 a.m., commercial/non-

industrial undertakings from 12 m.n. to 6 a.m., or agricultural takings at night provided

that she has had nine consecutive hours of rest.

Welfare facilities, such as separate dressing rooms and lavatories, must be installed at the

workplace.

8. EMPLOYMENT OF CHILDREN

The minimum employment age is 15 years of age. Any worker below 15 years of age

should be directly under the sole responsibility of parents or guardians provided that

work does not interfere with the child’s schooling or development.

The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-

hazardous jobs.

9. SAFE WORKING CONDITIONS

Employers must provide workers with every kind of on-the-job protection against injury,

sickness or death through safe and healthful working conditions.

10. RIGHTS TO SELF-ORGANIZATION AND COLLECTIVE BARGAINING

Every worker has the right to self-organization, i.e., to form or to join any legitimate

workers’ union, free from interference of their employer or the government. All workers

may join a union for the purpose of collective bargaining and is eligible for union

membership on the first day of their employment.

Collective bargaining is a process between two parties, namely the employer and the

union, where the terms and conditions of employment are fixed and agreed upon. In

collective bargaining, the two parties also decide upon a method for resolving grievances.

Collective bargaining results in a contract called a Collective Bargaining Agreement

(CBA).
 2. What are the kinds of employees? What are the rights of contractual employees?

In the Philippines there are six types of employees:

o Regular and Casual Employees

 Pursuant to Article 280 of the Labor Code of the Philippines (“Labor Code”), the

primary standard that determines regular employment is the reasonable connection

between the particular activity performed by the employee and the usual business

or trade of the employer; the emphasis is on the necessity or desirability of the

employee’s activity. Thus, when the employee performs activities considered

necessary and desirable to the overall business scheme of the employer, the law

regards the employee as regular.

 In addition, the Labor Code also considers as regular employment a casual

arrangement when the casual employee’s engagement has lasted for at least one

year, regardless of the engagement’s continuity. The controlling test in this

arrangement is the length of time during which the employee is engaged. (See

Universal Robina v. Acibo, G.R. No. 186439, 15 January 2014)

o Project Employees

 Project employment contemplates an arrangement whereby “the employment has

been fixed for a specific project or undertaking whose completion or termination

has been determined at the time of the engagement of the employee.” (Article 280,

Labor Code of the Philippines)

 Since the employee’s services are coterminous with the project, the services of the

project employees are legally and automatically terminated upon the end or

completion of the project.

o Seasonal Employees

 Seasonal employment applies “where the work or service to be performed is

seasonal in nature and the employment is for the duration of the season.” (Article

280, Labor Code of the Philippines)

 Season employees may also be considered regular employees, thus: “[f]arm

workers generally fall under the definition of seasonal employees. We have

consistently held that seasonal employees may be considered as regular

employees. Regular seasonal employees are those called to work from time to

time. The nature of their relationship with the employer is such that during the off-

season, they are temporarily laid off; but reemployed during the summer season or

when their services may be needed. They are in regular employment because of

the nature of their job,and not because of the length of time they have worked.”

(Gapayao v. Fulo, et al., G.R. No. 193493, 13 June 2013)

o Fixed-Term Employees

 Fixed-term employment is valid when: (a) the fixed period of employment was

knowingly and voluntarily agreed upon by the employer and employee without

any force, duress, or improper pressure being brought to bear upon the employee

and absent any other circumstances vitiating his consent; or (b) it satisfactorily

appears that the employer and the employee dealt with each other on more or less

equal terms with no moral dominance exercised by the former or the latter. (See

Caparoso, et al. v. Court of Appeals, G.R. No. 155505, 15 February 2007)

o Probationary Employees

 Probationary employment exists when the employee, upon his engagement is

made to undergo a trial period where the employee determines his fitness to

qualify for regular employment, based on reasonable standards made known to

him at the time of engagement. The employer shall make known to the employee

the standards under which he will qualify as a regular employee at the time of his

engagement. Where no standards are made known to the employee at that time, he

shall be deemed a regular employee. (See Section 6(d), Implementing Rules of

Book VI, Rule VII-A of the Labor Code)

 Generally, probationary employment shall not exceed six (6) months from the date

the employee started working. (See Article 281, Labor Code)

This are the rights of a contractual employee:

1. Safe and healthful working conditions

Whether your position is a desk job or it entails a lot of physical labor, your employer
should ensure that your health isn’t compromised at work. Your employer should take
steps to safeguard your health and well-being while on the job.

2. Service incentive leave, rest days, overtime pay, holiday pay, 13th month pay, and
separation pay.

Aside from your wage or salary, you should also be given paid time off, as well as
additional pay for any work done beyond your contract’s work hours, 13th month pay
and a separation pay if your employment is terminated early.

3. Retirement benefits under the SSS or retirement plans of the contractor, if there
is any.

If your employer has a retirement plan for their permanent employees, you should also be
granted the same benefit.

4. Social security and welfare benefits

Your employer must also grant you SSS, PhilHealth, and Pag-Ibig benefits, just like any
other permanent employee.

5. Self-organization, collective bargaining and peaceful concerted action

Contractual employees may also join or form employee unions, collective bargaining
agreements, and join peaceful demonstrations or protests. Your employment shouldn’t be
in jeopardy should you decide to join a union, which might result to your termination of
employment.

6. Security of tenure

You should be ensured secure employment for the duration stated on your employment
contract, unless your employer has a defensible reason for early termination (such as your
inability to perform tasks specified in contract) and has terminated you under due
process.
 3. How to discipline and fire employees?

4. What are the benefits under employees compensation and state insurance fund?

These are the benefits of the employees under employees compensation:

- Medico Benefits

Article 183. Medical Services. — Immediately after an employee contracts sickness or

sustains an injury, he shall be provided by the System during the subsequent period of his
disability with such medical services and appliances as the nature of his sickness or injury
and progress of his recovery may require, subject to the expense limitation prescribed by
the Commission.

Article 184. Liability. — The System shall have the authority to choose or order a change
of physician, hospital or rehabilitation facility for the employee, and shall not be liable
for compensation for any aggravation of the employee's injury or sickness resulting from
unauthorized changes by the employee of medical services, appliances, hospitals,
rehabilitation facilities or physicians.

Article 185. Attending physician. — Any physician attending an injured or sick employee
shall comply with all the regulations of the System and submit reports in prescribed form
at such time as may be required concerning his condition or treatment. All medical
information relevant to the particular injury or sickness shall on demand be made
available to the employee or the System. No information developed in connection with
treatment or examination for which compensation is sought shall be considered as
privileged communication.

Article 186. Refusal of examination or treatment. — If the employee unreasonably

refuses to submit to medical examination or treatment the System shall stop the payment
of further compensation during such time as such refusal continues. What constitutes an
unreasonable refusal shall be determined by the System which may on its own initiative
determine the necessity character, and sufficiency of any medical services furnished or to
be furnished.

Article 187. Fees and other charges. — All fees and other charges for hospital services,
medical care and appliances, excluding professional fees, shall not be higher than those
prevailing in wards of hospitals for similar services to injured or sick persons in general,
and shall be subject to the regulations of the Commission. Professional fees shall only be
appreciably higher than those prescribed under Republic Act numbered sixty-one
hundred eleven, as amended, otherwise known as the Philippines Medical Care Act of
1969.
Article 188. Rehabilitation services. — (a) The System shall, as soon as practicable,
establish a continuing program of the rehabilitation of injured and handicapped
employees, who shall be entitled to rehabilitation services, which shall consist of
medical, surgical or hospital treatment, including appliances if he has been handicapped
by the injury, to help him become physically independent.

(b) As soon as practicable, the System shall established centers equipped and staffed to
provide a balanced program of remedial treatment, vocational assessment and preparation
designed to meet the individual needs of each handicapped employee to restore him to
suitable employment, including assistance as may be within its resources to help each
rehabilitee to develop his mental, vocational or social potential.

- Disability Benefits

Article 189. Temporary total disability. — (a) Under such regulations as the Commission
may approve, any employee under this Title who sustains an injury or contracts sickness
resulting in temporary total disability shall for each day of injury or fraction thereof, or
for each day or fraction thereof after the third day of sickness, be paid by the System an
income benefit equivalent to ninety per cent of his average daily salary credit, subject to
the following conditions: (1) The daily income benefit shall not be less than two pesos
and fifty centavos nor more than sixteen pesos nor paid for a continuous period longer
than one hundred twenty days, and (2) The System shall be notified of the injury or
sickness.

(b) The payment of such income benefit shall be in accordance with the regulations of the
Commission: Provided, That the employee shall not be entitled to avail himself of the
income benefit under this Title and his sick leave credits at the same time: Provided,
further, That all sick leaves earned by him shall be preserved to his credit if he has not
been paid his salary during such leave of absence.

Article 190. Permanent Total disability. — (a) Under such regulations as the Commission
may approve, any employee under this Title who contracts sickness or sustains an injury
resulting in permanent total disability shall for each month until his death but not
exceeding five years be paid by the system during such disability an income benefit to be
computed as follows:

Forty-five percent (45%) of the first three hundred pesos of average monthly salary
credit or fraction thereof; plus

Twenty-five percent (25%) of the next three hundred pesos of average monthly salary
credit or fraction thereof; plus

Nine percent (9%) of each succeeding one hundred pesos of average monthly salary
credit or fraction thereof; plus

One tenth of one percent of the average monthly salary credit for each month of paid
coverage in the System in excess of one hundred twenty months of paid coverage as of
the last day of the second quarter preceding the quarter of disability: Provided, That the
monthly income benefit shall not be less than forty-five pesos.
(b) The monthly income benefit shall be guaranteed for five years, but the total payments
of which shall in no case exceed twelve thousand pesos, and shall be suspended if the
employee is gainfully employed or recovers from his permanent total disability or fails to
present himself for examination at least once a year upon notice by the System.

(c) The following disabilities shall be deemed total and permanent:

(1) Temporary total disability lasting continuously for more than one hundred twenty
days;

(2) Complete loss of sight of both eyes;

(3) Lost of two limbs at or above the ankle or wrist;

(4) Permanent complete paralysis of two limbs;

(5) Brain injury resulting in incurable imbecility or insanity; and

(6) Such cases as determined by the Medical Director of the System and approved by the
Commission.

(d) The number of months of paid coverage shall be defined and approximated by a
formula to be approved by the Commission.

Article 191. Permanent partial disability. — (a) Under such regulations as the
Commission may approve, any employee under this Title who contracts sickness or
sustains an injury resulting in permanent partial disability shall for each month not
exceeding the period designated herein be paid by the System during such disability an
income benefit equivalent to the income benefit for permanent total disability.

(b) The benefit shall be paid for not more than the period designated in the following
schedule:

Complete and permanent loss of the use of: Number of months

One thumb 8

One index finger 6

One middle finger 5

One ring finger 4

One little finger 2

One big toe 5

Any toe 2

One hand 31

One arm 40

One foot 25

One leg 37

One ear 8

Both ears 16

Hearing of one ear 8

Hearing of both ears 40

Sight of one eye 20

(c) A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow
considered as a loss of the arm. A loss of an ankle shall be considered as loss of the foot,
and a loss of a knee considered as a loss of the leg. A loss of more than one joint shall be
considered as a loss of the whole finger or toe, and a loss of only the first joint considered
as a loss of one-half the whole finger or toe: Provided, That such loss shall be either the
functional loss of the use or physical loss of the member.

(d) In cases of permanent partial disability less than the total loss of the member specified
in the preceding paragraph, the same monthly income benefit shall be paid for a portion
of the period established for the total loss of the member in accordance with the
proportion that the partial loss bears to the total loss. If the result is a decimal fraction, the
same shall be rounded off to the next higher integer.

(e) In cases of simultaneous loss of more than one member or a part thereof as specified
in this Art., the same monthly income benefit shall be paid for a period equivalent to the
sum of the periods established for the loss of the member or a part thereof. If the result is
a decimal fraction, the same shall be rounded off to the next higher integer.

- Death Benefits

Article 192. Death. — (a) Under such regulations as the Commission may approve,
the System shall pay to the primary beneficiaries upon the death of the covered employee
under this Title a monthly income benefit equivalent to the monthly income benefit for
permanent total disability increased by ten per cent for each dependent child but not
exceeding five, beginning with the youngest and without substitution: Provided, That the
portion equivalent to the monthly income benefit for permanent total disability shall be
guaranteed for five years; Provided, further, That if he has no primary beneficiary the
System shall pay to his beneficiaries or legal heirs a lump sum benefit equivalent to the
lesser of thirty times the monthly income benefit for permanent total disability and six
thousand pesos.

(b) Under such regulations as the Commission may approve, the System shall pay to the
primary beneficiaries upon the death of a covered employee who is under permanent total
disability under this Title the balance of his income benefit plus ten per cent of the
monthly income benefit for each dependent child but not exceeding five, beginning with
the youngest and without substitution: Provided, That if he has no primary beneficiary the
System shall pay to his beneficiaries or legal heirs a lump sum benefit equivalent to the
lesser of the balance of his income benefit or thirty times his monthly income benefit and
six thousand pesos.

Provisions Common to Income Benefits:

Article 193. Relationship and dependency. — All questions of relationship and

dependency shall be determined as of the time of death.

Article 194. Delinquent contributions. — (a) An employer who is delinquent in his

contributions shall be liable to the System for the benefits which may have been paid by
the System to his employees or their dependents, and any benefit and expenses to which
such employer is liable shall constitute a lien on all his property, real or personal, which
is hereby declared to be preferred to any credit except taxes. The payment by the
employer of the lump sum equivalent of such liability shall absolve him from the
payment of the delinquent contributions and penalty thereon with respect to the employee
concerned.

(b) Failure or refusal of the employer to pay or remit the contributions herein prescribed
shall not prejudice the right of the employee or his dependents to the benefits under this
Title. If the sickness, injury, disability or death occurs before the System receives any
report of the name of his employee, the employer shall be liable to the System for the
lump sum equivalent of the benefits to which such employee or his dependents may be
entitled.

Article 195. Second injuries. — If any employee under permanent partial disability
suffers another injury which results in a compensable disability greater than the previous
injury, the State Insurance Fund shall be liable for the income benefit of the new
disability; Provided, That if the new disability is related to the previous disability, the
System shall be liable only for the difference in income benefits.
Article 196. Assignment of benefits. — No claim for compensation under this Title is
transferrable, or liable to tax, attachment, garnishment, levy or seizure by or under any
legal process whatsoever, either before or after receipt by the person or persons entitled
thereto, except to pay any debt of the employee to the System.

Article 197. Earned benefits. — Income benefits shall, with respect to any period of
disability, be payable in accordance with this Title to an employee who is entitled to
receive wages, salaries or allowance for holidays, vacation or sick leaves, and any award
or benefit under a collective bargaining or other agreement.

Article 198. Safety devices. — In case the employee's injury or death was due to the
failure of the employer to comply with any law, or to install and maintain safety devices,
or take other precautions for the prevention of injury, said employer shall pay to the State
Insurance Fund a penalty of twenty-five percent of lump sum equivalent of the income
benefit payable by the System to the employee. All employers, especially those who
should have been paying a rate of contribution higher than that required of them under
this Title, are enjoined to undertake and strengthen measures for the occupational health
and safety of their employees.

Article 199. Prescriptive period. — No claim for compensation shall be given due course
unless notice thereof has been given to the employer in accordance with the provisions
herein, except when said notice is not required. The right to compensation shall be barred
unless said claim is filed with the System within one year from notice to the employer.

Article 200. Erroneous payment. — (a) If the System in good faith pays income benefit to
a dependent who is inferior in right to another dependent or with whom another
dependent is entitled to share, such payments shall discharge the System from liability,
unless and until such other dependent notifies the System of his claim prior to the
payments.

(b) In case of doubt as to the respective rights of rival claimants, the System is hereby
empowered to determine as to whom payment should be made in accordance with such
regulations as the Commission may approve. If the money is payable to a minor or
incompetent, payment shall be made by the System to such person or persons as it may
consider to be best qualified to take care and dispose of the minor's or incompetent's
property for his benefit.

Article 201. Prohibition. — No agent, attorney or other person pursuing or in charge of

the preparation or filing of any claim for benefit under this Title shall demand or charge
for his services a fee, and any stipulation to the contrary shall be null and void. The
retention or deduction of any amount from any benefit granted under this Title for the
payment of fees of such services is prohibited. Violation of any provision of this Article
shall be punished by a fine of not less than five hundred pesos nor more than five
thousand pesos, or imprisonment for not less than six months nor more than one year, or
both, at the discretion of the court.

Article 202. Exemption from levy, tax, etc. — All laws to the contrary notwithstanding,
the State Insurance Fund and all its assets shall be exempt from any tax, fee, charge, levy,
or customs or import duty, and no law hereafter enacted shall apply to the State Insurance
Fund unless it is provided therein that the same is applicable by expressly stating its
name.