DEFINITION OF TERMS Labor Code – a set of substantive and

procedural laws that prescribe the principal

Labor legislation – consists of statutes, rights and responsibilities of employers,
regulations and jurisprudence governing the employees and other industrial participants, as
relations between capital and labor by providing well as the role Government, in employment
for certain employment standards and a legal and related activities, so as to institute social
framework for negotiating, adjusting and justice
administering those standards and other
incidents of employment LIMITATIONS OF MANAGEMENT
Labor standards law – provides the least terms PREROGATIVES
and conditions of employment that employers 1. Law
must comply with and to which the employees 2. Contract or collective bargaining agreements
are entitled as a matter of legal right 3. General principles of fair play and justice
Labor standards – the minimum requirements
FUNDAMENTAL MANAGEMENT
prescribed by existing laws, rules, and
regulations relating to wages, hours of work, RIGHTS
cost-of-living allowance, and other monetary 1. Right to return of investment
and welfare benefits 2. Right to prescribe rules
Labor relations law – defines the status, rights 3. Right to select employees
and duties, and the institutional mechanisms 4. Right to transfer or discharge employees
that govern the individual and collective
interactions of employers, employees and their LABOR CODE
representatives
PRE-EMPLOYMENT
Social legislation – laws that provide particular
kinds of protection or benefits to society or ART. 13
segments thereof in furtherance of social justice
Worker – any member of the labor force,
Social justice (Calalang v. Williams) – neither whether employed or unemployed
communism, nor despotism, not atomism nor
anarchy, but the humanization of laws and the Recruitment and placement – any act of
equalization of social and economic forces by canvassing, enlisting, contracting, transporting,
the state so that justice in its rational and utilizing, hiring or procuring workers, and
objectively secular conception may at least be includes referrals, contract services, promising
approximated. It is the promotion of the welfare or advertising for employment, loally or abroad,
of all the people, the adoption by the whether for profit or not: PROVIDED, that any
government of measures calculated to insure person or entity which offers or promises for a
economic stability of all the component fee, employment to two or more persons shall
elements of society through the maintenance of be deemed engaged in recruitment and
proper economic and social equilibrium in the placement
interrelations of the members of the community Private fee-charging employment agency – any
person or entity engaged in recruitment and
GUARANTEED BASIC RIGHTS OF
placement of workers for a fee which is
WORKERS (found in 1987 charged, directly or indirectly, from the workers
Constitution) or employers or both

1. Organize themselves License – a document issued by the DOLE

2. Conduct collective bargaining or negotiation authorizing a person or entity to operate a
with management private employment agency
3. Engage in peaceful, concerted activities
Private recruitment entity – any person or
4. Enjoy security of tenure
association engaged in the recruitment and
5. Work under humane conditions
placement of workers, locally or overseas,
6. Receive a living wage
without charging, directly or indirectly, any fee
7. Participate in policy and decision-making
from the workers or employers
processes
Authority – a document issued by the DOLE
Private enterprises – an economic system
authorizing a person or association to engage in
under which property of all kinds can be
recruitment and placement activities as a
privately owned and in which individuals can
private recruitment entity
embark on a business activity

1
 Seaman – any person employed in a vessal - POEA performs regulatory, enforcement and
engaged in maritime navigation limited or special adjudicatory functions
Overseas employment – employment of a ART. 26 – TRAVEL AGENCIES
worker outside the Philippines PROHIBITED TO RECRUIT
Emigrant – any person, worker or otherwise, - Covers travel agencies and special agencies of
who emigrates to a foreign country by virtue of airline companies
an immigrant visa or resident permit or its - Prohibited in engaging business of recruitment
equivalent in the country of destination and placement of workers for overseas
ART. 16 – PRIVATE RECRUITMENT employment, whether for profit or not

- No person or entity other than public ART. 27 – CITIZENSHIP REQUIREMENT

employment offices shall engage in recruitment - Only Filipino citizens or corporations (at least
& placement of workers
75% of the authorized and voting capital stock
Exceptions: of which is owned and controlled by Filipino
citizens) shall be permitted to participate in the
- Art. 25 recruitment and placement of workers
- Construction contractor
- Members of diplomatic corps ART. 32 – FEES TO BE PAID BY
- Public employment offices WORKERS
- Private recruitment offices
- Private employment agencies - Applying to private fee-charging employment
- POEA agency
- Name hires - Not charged any fee until he has obtained
- Shipping agents employment or has actually commenced
- Other entities authorized by DOLE employment
- Must have a receipt
ART. 18 – BAN ON DIRECT HIRING - If paid fees but no employment = illegal
recruitment
GR: No employer may hire a Filipino worker for
overseas employment - Placement fee in an amount equivalent to one
month’s salary of the worker and documentation
EXP: through the Boards & entities authorized costs are the ONLY AUTHORIZED PAYMENTS
by SOLE that may be collected from a hired worker.
Notes ART. 34 – PROHIBITED PRACTICES
- Direct hiring by members of the diplomatic a) To charge or accept, directly or indirectly, any
corps, international organizations and such amount greater than that specified in the
other employers as may be allowed is schedule of allowable fees prescribed by the
exempted Secretary of Labor or to make a worker pay
- The purpose is to protect the OFW from any amount greater than that actually
exploitation and discrimination. received by him as a loan or advance
- ER abroad must comply with mandatory b) To furnish or publish any false notice or
remittance of OFWs. information or document in relation to recruit
or employment
ART. 22 – MANDATORY REMITTANCE
c) To give any false notice, testimony,
OF FOREIGN EXCHANGE EARNINGS (in information or document or commit any act of
relation to EO 857) misrepresentation for the purpose of
- Seaman – 80% securing a license or authority under this
Code
- Professional worker – 70%
d) To induce or attempt to induce a worker
- Other professions without free board & lodging
already employed to quit his employment in
– 50%
order to offer him to another unless the
ART. 25 – PRIVATE SECTOR transfer is designed to liberate the worker from
PARTICIPATION IN THE RECRUITMENT oppressive terms and conditions of employment
AND PLACEMENT OF WORKERS e) To influence or to attempt to influence any
person or entity not to employ any worker
- The private sector shall participate in the who has not applied for employment
recruitment and placement of workers, locally through his agency
and overseas, under such guidelines as may be f) To engage in the recruitment or placement
issued by the SOLE. of workers in jobs harmful to public health

2
 or morality or to the dignity of the Republic 3. Committed in large scale – committed against
of the Philippines three or more persons individually or as a
g) To obstruct or attempt to obstruct inspection group; prescribes in 20yrs.
by the Secretary of Labor or by his duly
Kinds of Illegal Recruiters
authorized representatives
h) To fail to file reports on the status of 1. Non-licensee or non-holder of authority –
employment, placement vacancies, remittance commits IR when they perform (a) any of the
of foreign exchange earnings, separation from acts defined in the law as recruitment and
jobs, departures, and such other matters or placement or (b) any of the fourteen acts in
information as may be required by the Sec. 6, RA 8042
Secretary of Labor 2. Licensee or holder of authority – may be
i) To substitute or alter employment contracts charged with IR only when it commits any of
approved and verified by the Department of the 14 wrongful acts
Labor from the time of actual signing thereof
by the parties up to and including the periods Acts of Illegal Recruitment
of expiration of the same without of the 1. Those enumerated in Art. 34
approval of the Secretary of Labor 2. Failure to actually deploy without valid reason
j) To become an officer or member of the as determined by the DOLE
Board of any corporation engaged in travel 3. Failure to reimburse expenses incurred by the
agency or to be engaged directly or indirectly worker in connection with his documentation
in the management of a travel agency; and and processing for purposes of deployment, in
k) To withhold or deny travel documents from cases where the deployment does not actually
applicant workers before departure for take place without the worker’s fault
monetary or financial considerations other 4. To allow a non-Filipino citizen to head or
than those authorized under this Code and its manage a licensed recruitment/manning agency
implementing rules and regulations.
Notes on Art. 38
Notes on Art. 34
- IR is a continuing crime
- Refers to domestic employment - Par. a is simple IR, par. b is qualified IR
- Par. a contemplates two situations: overcharge - One of the articles in LC with penalty of
and advance payment of required fees
imprisonment
- Par. e = anti-competition; on part of the ERs - There is no need for EE-ER relationship for LC
- Par. g = powers of Labor Sec. w/ regard to to be applicable
recruitment: (1) regulatory and (2) visitorial - Complaint may be initiated by DOLE, law
- Par. i = as if person is an illegal recruiter enforcement officer and/or the offended party
- Par. j = includes airlines - Jurisdiction is under RTC (province/city where
- Par. k = presupposes there is already committed or residence of offended party), must
employment through his effort; “monetary or show proof beyond reasonable doubt
financial considerations” unless if applicant - Illegal recruiter may be lawfully arrested without
hasn’t paid required fees; relate to Art. 32 warrant under the Rules on Criminal Procedure
ART. 35 – SUSPENSION/CANCELLATION (POEA remedy or file issuance of warrant or
cancel license/authority & order closure of
OF LICENSE OR AUTHORITY
establishment)
- One of the regulatory powers of the Labor Sec. o Closure needs notice + period for
- POEA has concurrent jurisdiction establishment to counter the notice
- A recruitment agency is solidarily liable for the
Labor Code RA 8042 – Overseas
unpaid salaries of a worker it recruited for
Filipinos and
employment with a foreign principal Overseas Migrant
ART. 38 – ILLEGAL RECRUITMENT Workers Act
Local recruitment Applies to recruitment
Kinds of Illegal Recruitment: and employment for overseas
employment
1. Simple illegal recruitment – where IR is proved Illegal Recruitment Illegal Recruitment
but the elements of large scale or syndicate are (Art. 38): (Sec. 6):
present; prescribes in 5yrs (Art. 39) - Any recruitment - Any recruitment
2. Committed by a syndicate – carried out by a activity including activity committed
group of three or more persons conspiring Prohibited Acts by
and/or confederating with one another in under Art. 34 nonlicensees/non-
carrying out any unlawful or illegal transaction, committed by holders of
enterprise or scheme; prescribes in 20yrs. nonlicensees or authority; OR

3
 nonholders of - Prohibited Acts 3-months option available ONLY IF the
authority. (same as Art. 34 of employment contract is for at least one year. If
- Elements: LC) committed by the contract is shorter than that, the salary paid
1. That the offender any person, should be that for the unexpired portion
has no valid whether a
license or nonlicensee, non- Jurisdiction over Money Claims
authority holder, licensee or
required by law holder of authority. - Labor Arbiters have jurisdiction over all
to enable one to - Added the monetary claims of Overseas Filipino Workers
lawfully engage following in the list arising from employer-employee relationship or
in recruitment of Prohibited Acts: by virtue of any law or contract involving Filipino
and placement 1. fail to actually workers for overseas deployment, including
of workers; and, deploy without claims for actual, moral, exemplary and other
2. That the offender valid reason; forms of damages
undertakes 2. fail to reimburse
either any expenses incurred Art. 40 – EMPLOYMENT PERMIT OF
activity within the by the worker in NON-RESIDENT ALIENS
meaning of connection with
recruitment and his/her - Applies only to non-resident aliens
placement documentation and - First, there must be a determination of the non-
defined under processing for availability of a person in the Philippines who is
Article 13(b), or purposes of competent, able, and willing at the time of
any prohibited deployment, in application to perform the services for which the
practices cases where the alien is desired.
enumerated deployment does - After issuance of permit, alien shall not transfer
under Article 34. not actually take
to another job or change his employer without
place without the
prior approval from the Secretary. (Art. 41)
worker’s fault.
Requisites for employment of non-resident
Dispute Settlement aliens

Regulatory power – DOLE Secretary shall have 1. Working permit from DOLE
the power to restrict & regulate the recruitment 2. Certification that there is no available Filipino
& placement activities of all agencies within the willing and competent to do the job for the ER
coverage of this Title & is hereby authorized to 3. Alien must train at least two Filipino
issue orders and promulgate rules & regulations understudies for such undertaking
to carry out the objectives & implement the 4. FOR ENTERPRISES REGISTERED IN
provisions of the Title PREFERRED AREAS OF INVESTMENT –
employment permit issued upon
Jurisdiction of the POEA recommendation of government agency
charged with the supervision of said registered
Original and exclusive jurisdiction to decide:
enterprise
a. all cases, which are administrative in character,
Categories of Foreign Nationals Exempt From
involving or arising out of violations of rules and
Securing an Employment Permit (LC IRR)
regulations relating to licensing and registration
of recruitment and employment agencies or 1. All members of the diplomatic service and
entities foreign government officials
b. disciplinary action cases and other special 2. Officers and staff of international organizations
cases, which are administrative in character, of which the Philippine government is a member
involving employers, principals, contracting and their spouses desiring to work in the
partners and Filipino migrant workers Philippines
3. Foreign nationals elected as members of the
Money Claims of OFWs
Governing Board but have only voting rights in
A worker dismissed from overseas employment the corporation
without just, valid or authorized cause as 4. All foreign nationals granted exemption by law
defined by law or contract, is entitled to: 5. Owners & representatives of foreign principals
whose companies are accredited by the POEA
a. full reimbursement of the placement fee with who come for a limited period and solely for
interest at 12% per annum PLUS purposes of interviewing Filipino applicants for
b. his salary for unexpired portion of his employment abroad
employment contract OR salary for 3 months for 6. Foreign nationals who come to the Philippines
every year of the unexpired term, WHICHEVER to teach in universities & colleges as visiting
IS LESSER professors under formal agreements between
4
 the Philippine universities and foreign 2. The job which the apprentice will work on
universities provided that the exemption is on a should be an apprenticeable occupation.
reciprocal basis
Highly technical industry – a trade, business,
7. Resident foreign nationals
enterprise, industry or other activity which
CONDITIONS OF utilizes the application of advanced technology

EMPLOYMENT Apprenticeable occupation – one which is

officially endorsed by a tripartite body and
TITLE 2 – TRAINING AND approved for apprenticeship by the TESDA.
EMPLOYMENT OF SPECIAL Notes on Apprenticeship
WORKERS
- Only employers in the highly technical
CHAPTER 1 – APPRENTICES industries may employ apprentices (Art. 60)
- Period of apprenticeship – not exceed 6 months
ART. 58 – (Definition) (Art. 61)
- Wage rates – in no case shall start below 75%
Apprenticeship – practical training on the job
of the applicable minimum wage
supplemented by related theoretical instruction
- ER may not pay the wage if the apprenticeship
Apprentice – a worker who is covered by a is:
written apprenticeship agreement with an o A requirement for graduation
individual employer or any of the entities o Required by the school
recognized under this Chapter o Required by the Training Program curriculum
Apprenticeable occupation – any trade, form of o Requisite for Board Examination
employment or occupation which requires more
CHAPTER 2 – LEARNERS
than 3 months of practical training on the job
supplemented by related theoretical instruction ART. 73 – LEARNERS DEFINED
Apprenticeship agreement – an employment Learners – persons hired as trainees in semi-
contract wherein the employer binds himself to skilled and other industrial occupations which
train the apprentice and the apprentice in turn are non-apprenticeable and which may be
accepts the terms of training learned through practical training on the job in a
relatively short period of time (not exceed
ART. 59 – QUALIFICATIONS OF
3mos.)
APPRENTICE
Learnership v Apprenticeship
1. Be at least 14 years of age
2. Possess vocational aptitude and capacity for Learners Apprentices
appropriate tests What -Persons hired as - Practical
3. Possess the ability to comprehend and follow trainees in training on
oral and written instructions semiskilled and the job
other industrial - Supplemente
occupations d by related
Requisites of Valid Apprenticeship
-Nonapprenticeable theoretical
-May be learned instruction
1. Qualifications or apprentice are met through practical - Covered by a
2. the apprentice earns not less than 75% of the training on the job written
prescribed minimum salary in a relatively apprenticeshi
3. apprenticeship agreement duly executed and short period of p agreement
signed time with an
- Shall not exceed individual
4. apprenticeship program approved by the Sec.
3 months employer or
of Labor; otherwise, the apprentice shall be
entity
deemed as a regular employee - Needs DOLE
5. period of apprenticeship not exceed 6 months approval
ART. 60 – EMPLOYMENT OF - Shall not
exceed 6
APPRENTICES months
Requisites for Employment of Apprentices When - No experienced - Only in highly
may workers available technical
1. The employer should be engaged in a business be - Prevent - industries
that is considered a highly technical industry hired curtailment of - Only in
employment apprenticeabl
5
 opportunities e occupations Notes on Handicapped Workers:
- Not to create
unfair - May be employed when their employment is
competition in necessary to prevent curtailment of employment
labor costs and opportunities and when it doesn’t create unfair
lower working competition in labor costs (Art. 79)
standards - May be hired as apprentices or learners if their
Who List of learnable - At least 14 handicap is not such as to effectively impede
may trades provided years old the performance of job operations (Art. 81)
be by TESDA - Possesses
hired/ vocational CONDITIONS OF
qualif aptitude and
icatio capacity for EMPLOYMENT
ns tests
- Ability to TITLE 1 – WORKING CONDITIONS
comprehend AND REST PERIODS
- Ability to
follow oral CHAPTER 1 – HOURS OF WORK
and written
instructions - Labor Code applies to employees in all
- Any form of establishments (Art. 82)
employment
requiring Employees not covered by the Labor Code
beyond 3 (Art. 82)
mos. practical 1. gov’t EEs,
training on
-If gov’t corp. created by Corporation Code – LC
the job
supplemente applies
dby related -If gov’t corp. created by charter – Civil service
theoretical Law applies
instruction 2. managerial EEs,
- No list 3. field personnel,
4. Members of the family of the employer who are
dependent on him for support,
Notes on Learners 5. domestic helpers,
- May be employed when no experienced - however, house personnel hired by a
workers are available (Art. 74) company official but paid for by the company
- Employment is necessary to prevent curtailment itself, to maintain a staff house provided for
of employment opportunities and the the official are not the latter’s domestic
employment does not create unfair competition helpers but regular EEs of the company
in terms of labor costs. 6. persons in service of another, and
7. Workers who are paid by results as determined
CHAPTER 3 – HANDICAPPED by the Sec.
WORKERS - Both classes of workers are paid per unit
accomplished. Their compensation is based
ART. 78 – DEFINITION
on the work accomplished and not on the
Handicapped workers – those whose earning time they spend in accomplishing their work
capacity is impaired by age or physical or
Managerial employees – those whose primary
mental deficiency or injury.
duty consists of the management of the
Qualified individual with a disability – an establishment in which they are employed or of
individual with a disability who, with or without a department or subdivision thereof, and to
reasonable accommodation, can perform the other officers or members of the managerial
essential functions of the employment position staff (Art. 82)
that such individual holds or desires.
Field personnel – refer to nonagricultural
Sheltered employment – the provision of employees who regularly perform their duties
productive work for disabled persons through away from the principal place of business or
workshops providing special facilities, income- branch office of the employer and whose actual
producing projects or homework schemes with hours of work in the field cannot be determined
a view to giving them the opportunity to earn a with reasonable certainty (Ar. 82)
living thus enabling them to acquire a working
capacity required in open industry
6
 Requisites for managerial staff to be covered o (a) all time during which an EE is required to
under the exception be on duty or to be at a prescribed
workplace and
Officers or members of a managerial staff if
o (b) all time during which an EE is suffered or
they perform the ff. duties and responsibilities
permitted to work
1. The primary duty consists of the performance of - Rest periods of short duration during work
work directly related to management policies of hours shall be counted as hours worked
their employer
2. Customarily and regularly exercise discretion
- Meal time is not compensable.
and independent judgment Noncompensable meal break is free time. If it is
3. (a) Regularly and directly assist a proprietor or not, then it is compensable, whether the worker
a managerial employee whose primary duty is able to eat or not.
consists of the management of the - When the work is not continuous, the time when
establishment in which he is employed or the laborer can leave his work and rest
subdivision thereof; or completely shall not be counted in the
computation.
(b) execute under general supervision work
along specialized or technical lines requiring - Preliminary [before work] and postliminary [after
special training, experience, or knowledge; or work] activities are deemed performed during
(c) execute, under general supervision, special working hours if such activities are controlled or
assignments and tasks; and required by the employer and are pursued
necessarily and primarily for the employer’s
4. Who do not devote more than 20 percent of benefit.
their hours worked in a work week to activities - An employee who is required to remain on call
which are not directly and closely related to the
on the employer’s premises or so close thereto
performance of the work described in
that he cannot use the time effectively for his
paragraphs (1), (2) and (3) above. [IRR, Bk III,
own purposes is working while “on call”.
Rule 1, Sec. 2 (b) & (c): Exemption]
- Time spent traveling to or from the place of
Employee – Employer Relationship work may or may not constitute working time.
But when an EE receives an emergency call
a. Selection and engagement of the employee
outside of his regular work hours and is
b. Payment of wages
required to travel, all of the time spent travelling
c. Power of dismissal
is working time.
d. Employer’s power to control the employee with
respect to the means and methods by which the - Time spent in travel as part of his principal
work is to be accomplished (most important) activity must be counted as hours worked.

Two-tiered economic dependence test

- The time spent by an employee for waiting is
considered as hours worked: (1) if he was
1. The putative employer’s power to control the engaged to wait or (2) if waiting is an integral
employee with respect to the means and part of his work
methods by which the work is to be - The time during which an employee is inactive
accomplished by reason of work interruptions beyond his
2. The underlying economic realities of the activity control is considered working time, either if the
or relationship imminence of the resumption of work requires
Art. 83 – NORMAL HOURS OF WORK the employee’s presence at the place of work or
if the interval is too brief to be utilized effectively
- Shall not exceed 8 hours and gainfully in the employee’s own interest.
[Book III, Rule 1 Sec. 4-c OR]
- Health personnel in cities with population of at
least 1M or in hospitals with a bed capacity of at Principles in Determining Hours Worked
least 100 – regular offices hours = 8hrs. a day,
5 days a week, exclusive of meal times a. All hours are hours worked w/c EE is required
o Except: where it is required that such personnel to give to his ER regardless of W/N such are
spent in productive labor
work for 6days or 48hours, in which case they
b. EE need not leave the premises of the
shall be entitled to additional compensation of
workplace in order that his rest period shall not
at least 30%
be counted, enough that he stops working
ART. 84 – HOURS WORKED c. If the work performed was necessary, or the EE
couldn’t abandon his work at the end of his
- Includes normal working hours, all time spent for such
work shall be considered as hours worked

7
d. The time during which an EE is inactive by and control of
reason of interruptions beyond his control shall the employer
be considered time either if the imminence of 4. travel is done
the resumption requires the EE’s presence at under vexing
the place of work and
dangerous
Part Time Work circumstance
s
- A single, regular or voluntary form of
employment with hours of work substantially
shorter than those considered as normal in the
establishment.
- This excludes those forms of employment
which, although referred to as part-time work,
are in particular, irregular, temporary or ART. 85 – MEAL PERIODS
intermittent employment, or in cases where
hours of work have been temporarily reduced
- Not less than 60mins time off for their regular
for economic, technical or structural reasons. meals

- The wage & benefits are in proportion to the Situations where the meal break may be
number of hours worked. shortened to less than 60mins.

Travel Time a. Work is non-manual or does not involve serious

physical exertion
From home to All in the Away b. Establishment regularly operates not less than
work day’s work from 16 hrs. a day
home
c. There is actual or impending emergencies or
Normal travel Time spent Travel that
there is urgent work to be performed on
from home to by an keeps an
machineries, equipment or installation to avoid
work which is employee in employee
not work time travel as part away from serious loss which the ER would otherwise
of his home suffer
principal overnight d. Work is necessary to prevent serious loss of
activity, like perishable goods
travel from
jobsite to Conditions for Shortened Meal Breaks upon
jobsite EE’s request
during the 1. EEs voluntarily agree in writing to a shortened
workday
meal period of 30mins. & are willing to waive
GR: not Compensabl Work time
the overtime pay
compensable e and when it
because it is a counted as cuts 2. No diminution whatsoever in the salary & other
normal incident hours work across an fringe benefits of the EEs existing before the
of employment employee’ effectivity of the shortened period
s 3. The EEs’ work doesn’t involve strenuous
EXCEPTIONS: workday physical exertion and they are provided with
1. Where because it adequate “coffee breaks”
employee substitutes 4. The value of the benefits derived from the
made to work for proposed work arrangement is equal to or
on an the hours commensurate with the compensation due them
emergency the for the shortened period
call and employee 5. The overtime pay will become due &
travel is should
demandable if ever they are permitted or made
necessary in have
to work beyond 4:30 pm
proceeding to been in
the the 6. The effectivity of the proposed working time
workplace office arrangement shall be of temporary duration as
2. travel is done determined by the Secretary
through a
conveyance
ART 87. – OVERTIME WORK
provided by Overtime compensation – additional pay for
the employer service or work rendered or performed in
3. travel is done
excess of 8hrs. a day
under the
supervision

8
 Day – understood to be the 24-hour period o Undertime work shall not be offset by
which commences from the time the employee overtime work on any other day. Permission
regularly starts to work to go on leave some other day shall not
exempt the ER from paying the additional
- If an EE works from 8am to 4pm, the work day compensation required in this chaper. (Art.
of such EE is from am-8am the following day. 88)
Any work in excess of 8hrs. within the 24-hour - Compensation for Rest Day, Sunday, or Holiday
period is considered as overtime work
Work (Art. 93)
regardless of whether the work covers two
o Scheduled rest day – a least 30% of his
calendar days.
regular wage (entitled to such compensation
- The minimal normal working hours fixed need for work performed on Sunday only when it
not be continuous to constitute as the “legal is his established rest day
working day” of 8hrs. as long as the 8hrs. is o If no regular work day and no regulat rest
within a work day. days can be scheduled – at least 30% of
- Overtime pay is computed by multiplying the regular wage for work performed on
overtime hourly rate by the number of hours Sundays and holidays
worked in excess of eight hours o Any special holiday – at least 30% of regular
- Reason for overtime pay: it is the additional wage
work, labor or service employed and its adverse  If special holiday falls on the EE’s
effects that justify the extra compensation scheduled rest day – at least 50% of his
regular wage
- An employee, as a general rule, cannot be
compelled to render overtime. Exceptions: Art. - Holiday pay (Art. 94) – paid his regular daily
89. wage [except for retail & service establishments
regularly employing less than 10 workers
Overtime pay Premium pay o Work on regular holiday – compensation
Additional Additional equivalent to twice his regular rate
compensation for compensation for
work done beyond work rendered by the Holiday Pay
the normal work employee on days
hours on ordinary normally he should If it’s an EE’s If it’s an EE’s rest
working days not be working such regular workday day
as special holidays or If unworked – 100% If unworked – 100%
rest days. Pay for If worked – 1st 8hrs – If worked – 1st 8hrs –
excess of 8hrs on 200% plus 30% of 200%
such days is Excess of 8hr - + Excess of 8hrs - +
considered overtime 30% of hourly rate on 30% of hourly rate on
pay said day said day

Conditions to be entitled to OT pay According to the LC, IRR and memo:

1. Actual rendition of OT work Work on any regular 200% of regular

2. Submission of sufficient proof that said work holiday, not daily wage
was actually performed exceeding 8hrs.
3. OT work is with the knowledge and consent of Work on any regular 200% of regular daily
the ER holiday, if it exceeds 8
wage (for the 1st 8
hours/overtime hours)
ADDITIONAL COMPENSATIONS + 30% of hourly rate
on said day
Regular wage – shall include cash wage only, Work on any regular 200% of regular daily
without deduction on account of facilities holiday which falls on wage + 30% of such
provided by the ER; for purposes of computing the scheduled rest amount
overtime & night shift differential day, not exceeding 8
hours
- Night shift differential (Art. 86) – not less than
10% of his regular wage for each hour of work Work on any regular Regular holiday-on-
between 10pm-6am holiday which falls on rest day rate (200%
scheduled rest day, if of regular daily wage
- Overtime work (Art. 87) – equivalent to regular it exceeds 8 plus 30% of such
wage + at least 25% hours/overtime amount) + 30% of
o Work performed beyond 8hrs. on holiday or hourly rate on said
rest day – equivalent to rate of first 8hrs on a day.
holiday/rest day + at least 30% thereof

9
 Work on special Regular daily wage + weekly rest day when such preference is based
holiday not exceeding 30% thereof on religious grounds
8 hours
ART. 92 – WHEN EMPLOYER MAY
Work on special Regular daily wage + REQUIRE WORK ON A REST DAY
holiday 50% thereof
a. In case of actual or impeding emergencies
caused by serious accident, fire, flood typhoon,
earthquake, epidemic, or other disaster or
1. According to DOLE Memo Circular 1-04, a calamity to prevent loss of life and property, or
“special holiday”/”special day” includes the imminent danger to public safety
National Special Days, and declared special b. In cases of urgent work to be performed on the
days such as Special Non-working Holiday, machinery, equipment, or installation, to avoid
Special Public Holiday and Special National serious loss which the ER would otherwise
Holiday. Such days are entitled to the rates suffer
prescribed above. These days are not the same c. In the event of abnormal pressure of work due
as a special working holiday to special circumstances, where the ER cannot
2. A special working holiday is considered an ordinarily be expected to resort to other
ordinary working day, so there is no premium measures
pay d. To prevent loss or damage to perishable goods
e. Where the nature of the work requires
ART. 89 – EMERGENCY OVERTIME continuous operations and the stoppage of work
may result in irreparable injury or loss to the ER
WORK
f. Under other circumstances analogous or similar
Compulsory Overtime Work to the foregoing as determined by the Secretary

a. When the country is at war or when any other CHAPTER 3 – HOLIDAYS, SERVICE
national or local emergency has been declared
INCENTIVE LEAVES AND SERVICE
by the National Assembly or the Chief
Executive CHARGES
b. When it is necessary to prevent loss of life or
ART. 94 – RIGHT TO HOLIDAY PAY
property or in case of imminent danger to
public safety due to an actual or impending - Double holiday (two regular holidays on the
emergency in the locality caused by serious same day)
accidents, fire, flood, typhoon, earthquake, o In unworked – entitles to at least 200% of
epidemic, or other disaster or calamity
their basic wage
c. When there is urgent work to be performed on
o If worked – entitled to compensation
machines, installations, or equipment, in order
equivalent to at least 300% of his basic wage
to avoid serious loss or damage to the ER or
= the 100% in addition to 200% represents
some other cause of similar nature
the basic pay for working not more than
d. When the work is necessary to prevent loss
8hrs.
or damage to perishable goods
 Meanwhile, if that day also happens to be
e. Where the completion or continuation of the
his scheduled rest day & he is suffered to
work started before the 8th hour is necessary
work, he is entitled to an additional 390%
to prevent serious obstruction or prejudice to
the business or operations of the ER - Successive regular holidays = where there are
f. (additional) Avail of a favorable weather or 2 successive regular holidays, an EE may not
environmental conditions where performance is be paid for both holidays if he absents himself
dependent thereon from work on the day immediately preceding the
1st holiday unless he works on the first holiday,
CHAPTER 2 – WEEKLY REST in which case, he is entitled to his holiday pay
PERIODS on the 2nd holiday

ART. 91 – RIGHT TO WEEKLY REST DAY Twelve Regular Holidays

1. New Year’s Day – Jan. 1
- ER’s duty to provide each of his EEs a rest 2. Maundy Thursday – movable date
period of not less than 24 consecutive hours 3. Good Friday – movable date
after every 6 consecutive normal work days 4. Araw ng Kagitingan – Monday nearest April 9
- The ER shall determine & schedule the weekly 5. Labor Day – Monday nearest May 1
rest day subject to the CBA. However, ER shall 6. Independence Day – Monday nearest June 12
respect the preference of the EEs as to their 7. National Heroes’ Day – Last Monday of August
8. Eidl Fitr – movable date
10
9. Eidl Adha – movable date - Benefits granted to the female EE regardless of
10. Bonifacio Day – Monday nearest November 30 civil status for the 1st 4 deliveries
11. Christmas Day – Dec. 25
12. Rizal Day – Monday nearest Dec. 30
- Normal delivery – 60 days
- Caesarian delivery – 78 days
Special Holidays
- Paid by SSS
1. Ninoy Aquino Day – Aug. 21
- This benefit shall not be included in the
2. All Saints Day – Nov. 1
computation of 13th month pay as it is granted to
3. Last Day of the Year – Dec. 31
an EE in lieu of wages which is the basis for
ART. 95 – RIGHT TO SERVICE computing 13th month.
INCENTIVE LEAVE
Conditions for Entitlement
- Every EE who has rendered at least 1 yr. of
service shall be entitled to a yearly service 1. Employment: A female EE employed at the time
incentive leave of 5days with pay. of delivery, miscarriage or abortion
2. Contribution: has paid at least 3 monthly
- Does not apply to those already enjoying the contributions in the 12-month period
benefit provided, those enjoying vacation leave immediately preceding the semester of her
with pay and those employed in establishments childbirth or miscarriage
regularly employing less than 10 EEs or in 3. Notice: EE notifed ER of her pregnancy & the
establishments exempted from granting this probably date of her childbirth, which notice
benefit after considering the viability or financial shall be transmitted to SSS in accordance with
condition of such establishment the rules & regulations it may provide
One year of service – service within 12mos., - Extended Maternity Leave (RA 11210)
whether continuous or broken, reckoned from o Leave with full pay for 105 days,
the date the employee started working. It regardless of natural or caesarian delivery
includes authorized absences, unworked o Leave with full pay for 60 days for
weekly rest days, and paid regular holidays miscarriage or emergency termination of
Notes: pregnancy

- The service incentive leave shall be

commutable to its money equivalent if not used
Availment
or exhausted at the end of the year. [IRR Sec.
5, LC]
- ER shall advance the payment subject to
- The cause of action of an entitled employee to
reimbursement by the SSS w/in 30 days from
claim his service incentive leave pay accrues filing of leave application
from the moment the employer refuses to
remunerate its monetary equivalent if the
- Availment shall be a bar to the recovery of
employee did not make use of said leave sickness benefits provided by this Act for the
credits but instead chose to avail of its same period for which daily maternity benefits
commutation [into money]. Accordingly, if the have been received
employee wishes to accumulate his leave - Employee may only avail of benefit for the first
credits and opts for its commutation upon his four (4) deliveries or miscarriages
resignation or separation from employment, his - Sanctions:
cause of action to claim the whole amount of his o That if an employee should give birth or
accumulated service incentive leave shall arise suffer miscarriage
when the employer fails to pay such amount at  without the required contributions having
the time of his resignation or separation from been remitted for her by her ER to the
employment. [Auto Bus Transport vs. NLRC, SSS, or
2005]  without the latter having been previously
Statutory Leaves notified by the ER of time of the
pregnancy, then the employer shall pay to
- Vacation leave (voluntary) the SSS damages equivalent to the
- Sick leave (voluntary) benefits which said employee member
would otherwise have been entitled to
Maternity Leave (RA 1161 as amended by RA
Magna Carta for Women (RA 9710) – Special
8282)
Leave/Surgical Leave

11
- A woman EE having rendered continuous the ER shall grant to the employee 7 calendar
aggregate employment service of at least 6mos days of paternity leave
for the last 12mos shall be entitled to a special
Solo Parent Leave (RA 8972)
leave benefit of 2mos. w/ full pay based on her
gross monthly compensation following surgery
caused by gynecological disorders. - Parental leave to not more than 7 days every
year to any employee who has rendered service
- Non-cumulative
of at least 1 year
- Non-convertible to cash unless otherwise
- Not convertible to cash
provided in the CBA
- A change in the status or circumstance of the
Paternity Leave (RA 8187) parent claiming benefits under this Act such that
he/she is no longer left alone with the
- Refers to benefits granting married male EEs 7 responsibility of parenthood, shall terminate
days leave with full pay on the condition that his/her eligibility for these benefits
his spouse has delivered a child or suffered - The employer shall provide for a flexible
miscarriage for purposes of enabling him to working schedule for solo parents: Provided,
effectively lend support to his wife in her period That the same shall not affect individual and
of recovery and/or nursing of the child. company productivity: Provided, further, That
- If it is not availed of, it is not convertible to cash. any employer may request exemption from the
above requirements from the DOLE on certain
- Paid by the ER
meritorious grounds. [Section 6]
- Usage shall be after the delivery, without - No employer shall discriminate against any solo
prejudice to an employer’s policy of allowing the parent employee with respect to terms and
employee to avail of the benefit before or during conditions of employment on account of his/her
the delivery, provided that the total number of status. [Section 7]
days shall not be more than 7 days for each
covered delivery Solo parent – any individual who falls under any
of the ff. categories:
Conditions for Entitlement
1. A woman who gives birth as a result of rape
A married employee shall be entitled to and other crimes against chastity even without
paternity leave benefit provided that he has met a final conviction of the offender: Provided, That
the following conditions: the mother keeps and raises the child
1. He is an employee at the time of the delivery of
2. Parent left solo or alone with the responsibility
of parenthood due to death of spouse
his child
2. He is cohabiting with his spouse at the time that 3. Parent left solo or alone with the responsibility
she gives birth or suffers a miscarriage of parenthood while the spouse is detained or is
3. He has applied for paternity leave with his ER serving sentence for a criminal conviction for at
within a reasonable period of time from the least one (1) year
expected date of delivery by his pregnant 4. Parent left solo or alone with the responsibility
spouse, or within such period as may be of parenthood due to physical and/or mental
provided by company rules and regulations, or incapacity of spouse as certified by a public
by CBA; and medical practitioner
4. His wife has given birth or suffered a 5. Parent left solo or alone with the responsibility
miscarriage of parenthood due to legal separation or de
facto separation from spouse for at least one
Crediting of existing benefits (1) year, as long as he/she is entrusted with the
custody of the children
1. If the existing paternity leave benefit under the 6. Parent left solo or alone with the responsibility
CBA, contract, or company policy is greater of parenthood due to declaration of nullity or
than 7 calendar days as provided for in RA annulment of marriage as decreed by a court or
8187, the greater benefit shall prevail by a church as long as he/she is entrusted with
2. If the existing paternity leave benefit is less than the custody of the children
that provided in RA 8187, the ER shall adjust 7. Parent left solo or alone with the responsibility
the existing benefit to cover the difference of parenthood due to abandonment of spouse
- Where a company policy, contract, or CBA for at least one (1) year
provides for an emergency or contingency leave 8. Unmarried mother/father who has preferred to
without specific provisions on paternity leave, keep and rear her/his child/children instead of

12
 having others care for them or give them up to a terms of money, whether fixed or ascertained
welfare institution on a time, task, piece, or commission basis, or
9. Any other person who solely provides parental other method of calculating the same, which is
care and support to a child or children payable by an employer to an employee under
10. Any family member who assumes the a written or unwritten contract of employment
responsibility of head of family as a result of the for work done or to be done, or for services
death, abandonment, disappearance or rendered or to be rendered and includes
prolonged absence of the parents or solo 2. the fair and reasonable value, as determined by
parent. the Secretary of Labor and Employment, of
board, lodging, or other facilities customarily
Conditions for entitlement furnished by the employer to the employee.
"Fair and reasonable value" shall not include
1. He/she has rendered at least one (1) year of any profit to the employer, or to any person
service, whether continuous or broken affiliated with the employer
2. He/she has notified his/her employer that
he/she will avail himself/herself of it, within a No work no pay principle
reasonable period of time General Rule: a fair day’s wage for a fair day’s
3. He/she has presented to his/her employer a labor or no work no pay
Solo Parent Identification Card, which may be
obtained from the DSWD office of the city or Exception: when the laborer was able, willing
municipality where he/she resides and ready to work but was illegally locked out,
suspended or dismissed, or otherwise illegally
Battered Woman Leave (RA 9262) prevented from working. [Sugue v Triumph
International (2009) and Aklan Electric
- the victim EE is entitled to a paid leave up to Cooperative, Inc. vs. NLRC (2000)] or if holiday
10days in addition to other paid leaves.
Equal work for equal pay principle
- It is extendible when the necessity arises as
specified in the Protection Order Employees working in the Philippines, if they
- Not convertible to cash are performing similar functions and
responsibilities under similar working conditions
should be paid equally. If an employer accords
ART. 96 – SERVICE CHARGES
employees the same position and rank, the
presumption is that these employees perform
- Collected by hotels, restaurants and similar
equal work. [International School Alliance of
establishments Educators v. Hon. Quisumbing].
- Distributed at the rate of 85% for all covered
EEs and 15% for management. Coverage/Exclusions (Art. 98 & Book 3, Rule
VII, Sec. 3 of IRR)
- EEs’ chare shall be equally distributed
LC title on wages shall not apply to the
- In case of abolishment, EEs’ share shall be
following:
considered integrated in their wages
- AMENDED BY RA 11360 – all service charges (1) Farm tenancy or leasehold;
shall be distributed completely and equally (2) Household or domestic helpers, including family
among covered workers except managerial EEs drivers and other persons in the personal
service of another;
o In the event that the minimum wage is
(3) Homeworkers engaged in needlework;
increased by law of wage order, service (4) Workers in registered cottage industries who
charges paid to the EEs shall not be actually work at home;
considered in determining the ER’s (5) Workers in registered cooperatives when so
compliance with the increased minimum recommended by the Bureau of Cooperative
wage Development upon approval of the Secretary of
Labor;
TITLE 2 – WAGES (6) Workers in registered barangay micro business
enterprise [RA 9178].
CHAPTER 1 – PRELIMINARY
MATTERS Wage vs. Salary

ART. 97 – DEFINITION Wage Salary

paid for unskilled or Paid to white collar
Wage – paid to any employee shall mean skilled labor workers & denote a
higher grade of
1. the remuneration or earnings, however Measured by the day, employment
designated, capable of being expressed in week, month or
13
 season prescribed by the Regional Tripartite Wages &
Indicates Suggestive of a Productivity Boards (Art. 99)
inconsiderable pay larger and more
for a lower & less permanent or fixed Coverage
responsible character compensation for GR: The wage increases prescribed under
of employment more important
Wage Orders apply to all private sector
service
workers and EEs receiving the daily
Ordinarily restricted
to sums paid as hire minimum wage rates or those receiving up
or reward to domestic to a certain daily wage ceiling, where
or menial servants applicable, regardless of their position,
designation, or status, and irrespective of the
method by which their wages are paid.
Facilities vs. Supplements
EXCEPTIONS:
Facilities Supplements
What it is a. Household or domestic helpers,
Articles or Extra remuneration or including family drivers and persons in the
service/items of special personal service of another
expense benefits/articles or b. Homeworkers engaged in needlework
services/tools of the c. Workers employed in any establishment
trade duly registered with the NCIDA in accordance
Purpose w/ RA 3470 provided that such workers perform
For the benefit of the For the benefit or the work in their respective homes
EE & his family; for convenience of the d. Workers in any duly registered
their existence and ER cooperative when so recommended by the
subsistence
Bureau of Cooperative Development and upon
How Treated
approval of the Sec. provided, however, that
Part of the wage so it Independent of the
such recommendation shall be given only for
is deductible wage so not
deductible the purpose of making the cooperative viable
and upon finding and certification supported by
Requirements for Deducting Value of Facilities adequate proof, that the cooperative cannot
resort to other remedial measures without
Without satisfying these requirements, the ER serious loss or prejudice to its operation except
simply cannot deduct the value from the EE’s through its exemption from the requirements of
wages the Rules.
e. Workers of registered barangay micro
1. Proof must be shown that such facilities are
business enterprise with Certificates of
customarily furnished by the trade
Authority issued by the Office of the Municipal
2. The provision of deductible facilities must be
or City Treasurer
voluntarily accepted in writing by the EE
3. Facilities must be charged at fair and Notes on Minimum Wage:
reasonable value
- The basis of rates prescribed by law shall be
Customary – founded on long-established and
the normal working hours of 8hrs. a day (Sec. 7,
constant practice connoting regularity. The
IRR of RA 6727)
receipt of an allowance on a monthly basis
doesn’t ipso facto characterize it as regular and - Freedom to bargain = despite the minimum
forming part of salary because the nature of the wage order, employees are not prevented from
grant is a factor worth considering (Millares v. bargaining for higher wages with their
NLRC) employers
- Determine the place of hiring for basis of
CHAPTER 2 – MINIMUM WAGE minimum wage rate
RATES - Even if EE is willing to accept wage lower than
ART. 99 – REGIONAL MINIMUM WAGES the standard minimum wage, that is void
because minimum wage is non-waivable
Statutory minimum wage – the lowest wage rate
fixed by law than an ER can pay his workers; ART. 100 – PROHIBITION AGAINST
payment thereof is not dependent on the ER’s ELIMINATIONS OR DIMINUTION OF
ability to pay BENEFITS
Regional minimum wages – the minimum wage (in relation to Art. 127)
rates for agricultural & non-agricultural EEs &
workers in every region shall be those
14
 GR: Prohibition against elimination or -If the piece rate EE performs his work in the
diminution of benefits company premises
2. Those whose time & performance are
- No wage order issued by any regional board
unsupervised by the ER
shall provide for wage rates lower than the
-The ER’s control is over the result of the work
statutory minimum wage rates prescribed by
Congress (Art. 127 as amended by RA 6727) -Pakiao and takay basis belong to this group
- Benefits initiated through negotiation between The wage rates of workers who are paid by
EE and ER (e.g. CBA) can only be eliminated or results shall continue to be established in
diminished bilaterally accordance with Art. 101 of the LC, as
amended, and its IRR. This will be done
Requisites through:
If the ff. are met, then the ER cannot remove or 1. Time & motion studies
reduce benefits: 2. Consultation with representatives of ERs’ &
1. Ripened company policy: Benefit is founded on workers’ organizations in a tripartite conference
a policy which has ripened into a practice over a called by the DOLE Sec.
long period [Prubankers Assn. vs. Prudential Benefits payable to piece-rate workers
Bank and Co.]
2. Practice is consistent and deliberate and 1. Applicable statutory minimum daily rate
3. Not due to error in the construction or 2. Yearly SIL of 5 days with pay
application of a doubtful or difficult question of 3. NSD pay
law. [Globe Mackay Cable vs. NLRC] 4. Holiday pay
4. The diminution or discontinuance is done 5. Meal & rest periods
unilaterally by the employer. 6. Overtime pay (conditional)
7. Premium pay (conditional)
When not applicable 8. 13th-month pay
When at least one of the requisites is absent 9. Other benefits granted by law, by individual or
collective agreement or company policy or
1. Mistake in the application of the law [Globe practice
Mackay Cable v. NLRC]
2. Correction of error Notes:
3. Negotiated benefits [Azucena]
- If EE gives more than needed, more than
4. Wage order compliance
minimum wage
5. Benefits on reimbursement basis
6. Reclassification of Positions – e.g. loss of some - If EE gives less than needed, still entitled to
benefits by promotion minimum wage
7. Contingent or Conditional Benefits – the rule
CHAPTER 3 – PAYMENT OF
does not apply to a benefit whose grant
depends on the existence of certain conditions, WAGES
so that the benefit is not demandable if those
ART. 102 – FORMS OF PAYMENT (how)
preconditions are absent
8. Productivity incentives Allowable:

- By check
- By money order

When such manner of payment is customary on

ART. 101 – PAYMENT BY RESULTS the date of effectivity, or is necessary because
of special circumstances as specified in
Workers paid by results – workers whose pay is appropriate regulations to be issued by the
calculated on the basis of the quantity and Secretary
quality or the kind of work they turn out. Not allowed:
Categories of EEs paid by results:
- Promissory notes
1. Those whose time & performance are - Vouchers
supervised by the ER - Coupons
- There is an element of control & supervision - Tokens
over the manner as to how the work is to be - Tickets
performed. - Chits

15
- Any object other than legal tender, even when circumstances to be determined by the
expressly requested by the EE Secretary in appropriate regulations, in which
case, the worker may be paid through another
ART. 103 – TIME OF PAYMENT (when) person under written authority given by the
worker for the purpose; or
- At least once every 2 weeks or twice a month at
b. Where the worker has died, in which case, the
intervals not exceeding 16 days
employer may pay the wages to the heirs
- If on account of force majeure or circumstances
without the necessity of intestate proceedings.
beyond the employer’s control, payment cannot
i. The claimants, if they are all of age, shall
be made, the employer shall pay the wages
execute an affidavit attesting to their
immediately after such force majeure or
relationship to the deceased and the fact that
circumstances have ceased. No employer shall
they are his heirs, to the exclusion of all
make payment with less frequency than once a
other persons.
month.
ii. If any of the heirs is a minor, the affidavit
The payment of wages of employees engaged shall be executed on his behalf by his natural
to perform a task which cannot be completed in guardian or next-of-kin.
two (2) weeks shall be subject to the following iii. The affidavit shall be presented to the
conditions: employer who shall make payment through
the Secretary or his representative. The
1. That payments are made at intervals not representative of the Secretary of Labor and
exceeding sixteen (16) days, in proportion to Employment shall act as referee in dividing
the amount of work completed the amount paid among the heirs.
2. That final settlement is made upon completion iv. The payment of wages under this Article
of the work shall absolve the employer of any further
ART. 104 – PLACE OF PAYMENT (where) liability with respect to the amount paid

- Made at or near the place of undertaking ART. 106 – CONTRACTOR OR

- Except as otherwise provided by such SUBCONTRACTOR
regulations as the Sec. may prescribe Contracting or subcontracting – an arrangement
- Upon written permission of majority of the EEs, whereby a principal agrees to put out or farm
all private establishments with 25 or more EEs out with a contractor or subcontractor the
and located within 1km. radius to a bank shall performance or completion of a specific job,
pay the wages & other benefits of their EEs work or service within a definite or
through any of said banks predetermined period, regardless of whether
such job, work or service is to be performed or
Circumstances where payment in a place other
completed within or outside the premises of the
than the workplace is permissible:
principal
1. When payment cannot be effected at or near
Labor-only contracting – an arrangement where
the place of work by reason of the deterioration
the contractor or subcontractor merely recruits,
of peace and order conditions or by reason of
supplies, or places workers to perform a job,
actual or impending emergencies cause by fire,
work or service (D.O. 174)
flood, epidemic, or other calamity rendering
payment thereat impossible Job contracting Labor-only
2. When the ER provides free transportation to the contracting
EEs back and forth The ER/principal is The ER/principal is
3. Any other analogous circumstances; provided merely an indirect treated as direct
that the time spent by the EEs in collecting their employer, by employer of the
wages shall be considered as compensable operation of law, of contractor’s
hours worked his contractor’s employees in all
employees. instances. (contractor
= agent of the
employer)
The law creates an The statute creates
ER-EE relationship an ER-EE relationship
ART. 105 – DIRECT PAYMENT OF for a limited for a comprehensive
WAGES (to whom) purpose. purpose.
The principal The principal
Wages shall be paid directly to the workers becomes solidarily becomes solidarily
to whom they are due, except: liable. The liability liable with the
however does not contractor not only for
a. In cases of force majeure rendering such
extend to the unpaid wages but
payment impossible or under other special
16
 payment of also for all the rightful interfere with, restrain or coerce employees in
backwages or claims of the the exercise of their rights to self-organization
separation pay of employees under the f. Requiring the contractor’s/subcontractor’s
employees who are Labor Code and employees to perform functions which are
illegally dismissed. ancillary laws. currently being performed by the regular
Allowed by law Prohibited by law employees of the principal
Presence of Absence of g. Requiring the contractor’s/subcontractor’s
substantial capital or substantial capital or employees to sign, as a precondition to
investment investment
employment or continued employment, an
antedated resignation letter; a blank payroll; a
Trilateral relationship – relationship in a waiver of labor standards; or a quitclaim
contracting/subcontracting arrangement where releasing the principal or contractor from liability
there is a contract for a specific job, work or as to payment of future claims; or require the
service between the principal and the contractor employee to become a member of a
and a contract of employment between the cooperative
contractor and its workers h. Repeated hiring by the contractor/subcontractor
of employees under an employment contract of
Elements of Labor-only contracting a short duration
1. The contractor or subcontractor does not have i. Requiring employees under a
substantial capital which relates to the job, work contracting/subcontracting arrangement to sign
or service to be performed or the contractor a contract fixing the period of employment to a
does not have investments in the form of tools, term shorter than the term of the Service
equipment, machineries, supervision, work Agreement, unless the contract is divisible into
premises, among othes and the employees phases for which substantially different skills
recruited, supplied, or placed by such contractor are required and this is made known to the
or subcontractor are performing activities which employee at the time of engagement
are directly related to the main business of the j. Such other practices, schemed or employment
principal; OR arrangements designed to circumvent the rights
2. The contractor does not exercise the right to of workers to security of tenure
control over the performance of the work of the Notes:
contractual employee
- When there is labor-only contracting, the person
Substantial capital – paid up capital
supplying the workers shall be considered
stocks/shares of at least P5m in the case of a
merely as an agent of the employer.
corporation, partnerships and cooperatives, or,
- The provisions of Art. 106 also applies to any
in the case of a single proprietorship, a net
worth of at least P5m. person, partnership, association or corporation
which contracts with an independent contractor
Control – refers to control over the manner or for the performance of any work, task, job or
method of doing the work project. (Art. 107)
- An ER or indirect ER may require the contractor
Labor service cooperative – one engaged in
providing service to a principal employer to furnish a bond equal to the cost of labor
under contract, on the condition that the bond
Worker’s cooperative – a cooperative organized will answer for the wages due the EEs should
by workers, including self-employed who are the contractor fail to pay the same. (Art. 108)
owners and members of the enterprise; cannot - Ever ER or indirect ER shall be held
engage in contracting or subcontracting activity responsible with his contractor for any violation
of LC. For the determination of civil liability, they
Illicit Forms of Employment Arrangements (D.O.
shall be considered as direct ERs. (Art. 109)
174)
- In the event of bankruptcy or liquidation of an
a. When the principal farms out work to a cabo ER’s business, his workers shall enjoy first
b. Contracting out of job or work through an in- preference as regards their wages & other
house agency monetary claims. Such shall be paid in full
c. Contracting out of job or work through an in- before claims of the gov’t and other creditors
house cooperative which merely supplies work may be paid. (Art. 110)
to the principal
d. Contracting out of a job or work by reason of a ART. 111 – ATTORNEY’S FEES
strike or lockout whether actual or imminent
a. In cases of unlawful withholding of wages, the
e. Contracting out of a job or work being culpable party may be assessed attorney’s fees
performed by union members and such will
equivalent to 10% of the amount of wages
recovered
17
b. It shall be unlawful for any person to demand or Deductions authorized by law
accept, in any proceedings for the recovery of
1. Deduction for value of meals and other facilities
wages, attorney’s fees which exceed 10% of
2. In cases where the employee is insured with his
the amount of wages recovered
consent by the employer, deduction for the
GR: not deductible from wages amount paid by said employer, as premiums on
the insurance
EXP: if there is a CBA & union dues
3. In cases where the right of the employees or his
Concepts of Attorney’s Fees union to check-off has been recognized by the
employer or authorized in writing by the
1. Ordinary concept – an attorney’s fee is the individual employee concerned
reasonable compensation paid to a lawyer by 4. In cases where the employee is indebted to the
his client for the legal services the former has employer, where such indebtedness has
rendered to the latter; basis – the fact of the become due and demandable
attorney’s employment by and his agreement 5. In court awards, wages may be the subject of
with the client execution or attachment, but only for debts
2. Extraordinary concept – attorney’s fees are incurred for food, shelter, clothing and medical
deemed indemnity for damages ordered by the attendance
court to be paid by the losing party in a 6. Withholding tax
litigation; payable to the client unless they have 7. Salary deductions of a member of a legally
agreed that the award shall pertain to the established cooperative
lawyer as additional compensation or as part 8. SSS, medicare and Pag-Ibig contributions
thereof. 9. Deduction for disciplinary action if always late or
- Awarded attorney’s fee may not exceed 10% absent
but between lawyer and client, quantum meruit
may apply Notes:

Quantum meruit – reasonable sum of money to - Deduction is maximum of 35%

be paid for services rendered or work done; - For union dues, it is automatically deducted
what the lawyer deserves to be received - An EE’s payment of obligation to a 3rd person is
deductible from the EE’s wages if the deduction
CHAPTER 4 – PROHIBITIONS is authorized in writing by the EE.
REGARDING WAGES - Deductions for unpaid absences are allowed
ART. 112 – NON-INTERFERENCE IN ART. 114 – DEPOSITS FOR LOSS OR
DISPOSAL OF WAGES DAMAGE
- No ER shall limit or otherwise interfere with the GR: No employers shall require his worker to
freedom of any EE to dispose of his wages. make deposits from which deductions shall be
- He shall not in any manner force or oblige his made for the reimbursement of loss of or
EEs to purchase merchandise or other damage to tools, materials, or equipment
properties from the ER or from any other person supplied by the employer
or make use of any store or service of such ER.
EXP: when the employer is engaged in such
- Correlated with Art. 102 trades, occupations or business where the
ART. 113 – WAGE DEDUCTION practice of making deductions or requiring
deposits is a recognized one, or is necessary or
GR: No employer, in his own behalf or in behalf desirable as determined by the Secretary of
of any person, shall make any deduction from Labor and Employment in appropriate rules and
the wages of his employees. regulations
EXP: ART. 115 – LIMITATIONS
a. In cases where the worker is insured with his - No deduction from the deposits of an employee
consent by the employer, and the deduction is for the actual amount of the loss or damage
to recompense the employer for the amount shall be made unless the employee has been
paid by his as premium on the insurance heard thereon, and his responsibility has been
b. For union dues, in cases where the right of the clearly shown.
worker or his union to check off has been
recognized by the employer or authorized in Conditions for payments for lost or damaged
writing by the individual worker concerned equipment is deductible from the employee’s
c. In cases where the employer is authorized by salary
law or regulations issued by the Secretary

18
1. EE is clearly shown to be responsible for the ART. 128 – VISITORIAL AND
loss or damage ENFORCEMENT POWER
2. EE is given ample opportunity to show cause
why deduction should not be made Visitorial Powers of DOLE Secretary
3. Amount of the deduction is fair and reasonable a. Access to ER’s records and premises at any
and shall not exceed the actual loss or damage time of the day or night, whenever work is being
4. Deduction from the EE’s wage does not exceed undertaken
20% of the EE’s wages in a week b. To copy from said records
ART. 116 – WITHHOLDING OF WAGES c. Question any EE and investigate any fact,
AND KICKBACKS PROHIBITED condition or matter which may be necessary to
determine violations or which may aid in the
- It shall be unlawful for any person, directly or enforcement of the LC and any labor law, wage
indirectly, to withhold any amount from the order, or rules and regulation issued pursuant
wages of a worker or induce him to give up any thereto
part of his wages by force, stealth, intimidation,
Enforcement Powers
threat or by any other means whatsoever
without the worker’s consent. a. Issue compliance orders to give effect to the
labor standards provisions of LC and other
ART. 117 – DEDUCTION TO ENSURE labor legislation based on the findings of labor
EMPLOYMENT employment and enforcement officers
b. Issue writs of execution to the appropriate
- It shall be unlawful to make any deduction from
authority for the enforcement of their orders
the wages of any employee for the benefit of
except in cases where the ER contests the
the employer or his representative or
finding of the labor employment & enforcement
intermediary as consideration of a promise of
officer and raises issues supported by
employment or retention in employment.
documentary proofs which weren’t considered
ART. 118 – RETALIATORY MEASURES in the course of inspection
c. May order stoppage of work or suspension of
- It shall be unlawful for an employer to refuse to operations of any unit or department of an
pay or reduce the wages and benefits, establishment when non-compliance with the
discharge or in any manner discriminate against law poses grave & imminent danger to the
any employee who has filed any complaint or health & safety of workers in the work place.
instituted any proceeding under this Title or has
testified or is about to testify in such Notes
proceedings. - It shall be unlawful for any person or entity to
Are retaliatory measures strikeable? obstruct, delay, or otherwise render ineffective
the SOLE’s orders and no inferior court shall
- Acts under Art. 118 are broad and can lead to issue an injunction or restraining order or
an unfair labor practice (ULP) case if the assume jurisdiction over any case involving the
employer retaliated against testifying employee. enforcement orders issued.
- If ULP, strikeable - Any gov’t EE found guilty of violation thereof or
- Art. 118 equally applies to implicit or unspoken abuse of authority, shall be subject to summary
testimony by an employee dismissal.
- The SOLE may require ERs to keep & maintain
ART, 119 – FALSE REPORTING
such [Link] records as may be necessary.
- It shall be unlawful for any person to make any - An order issued by the duly authorized
statement, report, or record filed or kept representative of the SOLE may be appealed to
pursuant to the provisions of this Code knowing the SOLE.
such statement, report or record to be false in - In case the order involves a monetary award,
any material respect. an appeal by the ER may be perfected only
upon the posting of a bond in the amount
equivalent to the monetary award in the order
appealed from.
- The matter for questioning under this article is
only for labor standards.
- This is inapplicable to OFWs.
CHAPTER 6 – ADMINISTRATION - The EE is still working.
AND ENFORCEMENT - Jurisdiction falls on to the SOLE or Reg. Dir.
- No bond, no appeal
19
- The scope is broad enough to cover any fact,
condition or matter related to the enforcement
Notes:
not only of the LC but of any labor law.
- The NLRC’s Labor Arbiter is the proper - Any sum recovered pursuant to this Art. Shall
competent authority to say whether one is an be held in a special deposit account by, and
employee or not shall be paid on order of, the SOLE or the
- SOLE exercises quasi-judicial power, at least regional director directly to the employee or
to the extent necessary to determine violations househelper concerned.
of labor standards provisions of the Code and o Any sum not paid to the EE/househelper,
other labor legislation. because he can’t be located after diligent &
- In March 2012, the Court now concedes that reasonable effort to locate him within 3yrs,
DOLE has the authority to determine the shall be held as a special fund of the DOLE
existence of an employer-employee to be used exclusively for the benefit of
relationship, “subject to judicial review, not workers.
review by NLRC” - Arts. 128 & 129 are operative only in the
- Where no proof of compliance is submitted by context of employment relationship. A regular
the employer after 7 calendar days from receipt court has jurisdiction over claim of an
of the inspection results, the Reg. Dir. Shall independent contractor to adjust contractual
summon the employer and the complainants to fee.
a summary investigation. - Where no EE-ER relationship exists between
- An order issued under this Article is appealable the parties & no issue is involved which may be
to the DOLE Secretary, the administrative resolved by reference to the LC, it is the RTC
superior of the regional director. that has jurisdiction.
- In unionized companies, the DOLE inspectors - When the claim is more that 5k, the Reg. Dir.
shall always be accompanied by the president Shall advise complainant to amend the
or any responsible officer of the union. complaint & file the same with the appropriate
- In non-unionized companies, establishments or branch of the NLRC.
businesses, the inspection should be carried - The nature of proceedings are summary and
out in the presence of a worker representing the non-litigious.
workers in the said company. - Strictly limited to recovery of wages and simple
money claims only
ART. 129 – RECOVERY OF WAGES, - NLRC has appellate jurisdiction
SIMPLE MONEY CLAIMS AND OTHER
BENEFITS Art. 128 (Visitorial & Enforcement Power) vs.
Art. 129 (Recovery of Wages) vs. Art. 224
- The Reg. Dir. Is empowered, through summary
proceedings & after due notice, to hear & Art. 128 Art. 129 Art. 224
decide cases involving recovery of wages and (Labor
Arbiter)
other monetary claims and benefits.
Speaks of Refers to
Requisites for claim to work: inspection of adjudication
establishment of EE’s claim
1. The claim is presented by an employee, or a s & issuance for wages &
person employed in domestic or household of orders to benefits
service, or househelper compel
2. The claim arises from employer-employee compliance w/
relations labor
3. The claimant does not seek reinstatement standards
4. The aggregate money claim of each claimant Covers Limits the
does not exceed P5000 enforcement proceedings
of labor to monetary
Grounds for appeal: legislation in claims w/c
general only involves
1. There is prima facie evidence of abuse of labor
discretion standards
2. The order/decision was secured through fraud, Proceedings Initiated by Initiated by
coercion, or graft and corruption are offshoots sworn complaints
3. The appeal is made on purely questions of law of inspections complaints
4. There are serious errors in findings of fact done by labor filed by any
which if not corrected, would cause grave or officers/safety interested
irreparable damage or injury to the appellant engineers party
Involves EEs Applies to
20
 still in the present/past New Expanded Maternity Leave Benefit (RA
service EEs at the 11210)
time the
complaint is - Now covers female employees of public and
filed private sector
provided - Regardless of civil status or legitimacy of the
there is no child; regardless of normal or caesarian delivery
demand for
- 105 days of maternity leave and an option to
reinstatemen
t extend for an additional 30 days without pay
Existing EE- Operative for No EE-ER - In case the worker also qualifies as a solo
ER money relationship parent, the worker shall be granted an
relationship is claims W/N additional 15 days maternity leave w/ full pay
a prerequisite EE-ER - Should be availed of either before or after the
relationship actual period of delivery
is existing at
- No more limit as to the frequency
time of
complaint - For cases of miscarriage or emergency
No maximum Amount No ceiling on termination, 60 days leave w/ full pay shall be
monetary should not the amount granted
amount for the exceed - For extension of additional 30 days w/o pay, the
exercise of P5000 head of the agency shall be given due notice at
enforcement least 45 days before end of her maternity leave
power (no prior notice necessary in the event of a
Person Vested upon medical emergency
exercising is a regional
the SOLE or director or - Maternity leave shall be granted even if the
any any hearing termination of the pregnancy occurs not more
authorized officer of than 15 calendar days after the termination of
rep. DOLE the EE’s service
Order issued Order issued - For those not SSS members, their maternity
is appealable is appealable leave shall be governed by PhilHealth
to SOLE to NLRC - May also redound to the father’s benefit if the
No need for No prayer for w/ or w/o mother is willing to give part of her leave (not
reinstatement reinstatemen reinstatemen
more than 7 days)
t t
SOLE = NLRC = NLRC = - For private EEs = shouldered by SSS; if
appellate appellate appellate excess, shouldered by ER
jurisdiction jurisdiction jurisdiction - For public EEs, = not shouldered by GSIS;
10 days 13 appeals 10 days shouldered by the LGU/ER
appeal appeal - Regardless of how may children are born
w/ bond w/o bond w/ bond (twins/triplets/etc) = only counted as 1 single
delivery
TITLE 3 – WORKING CONDITIONS ART. 133 – DISCRIMINATION
FOR SPECIAL GROUPS OF PROHIBITED
EMPLOYEES - Unlawful for any ER to discriminate against any
CHAPTER 1 – EMPLOYMENT OF woman EE with respect to terms & conditions of
employment solely on account of her sex
WOMEN 1. Payment of a lesser compensation or other
ART. 130 – FACILITIES FOR WOMEN form of remuneration and fringe benefits to a
female EE for work of equal value
- Proper seats, provided they can perform their 2. Favoring a male EE with respect to promotion,
duties without detriment to efficiency training opportunities, study grants solely on
- Separate lavatories and at least a dressing account of their sexes.
room Bona fide occupational qualification (BFOQ) –
- Establish a nursery where the job itself necessarily requires a
- Determine appropriate minimum age for particular qualification, then the job applicant or
retirement worker who doesn’t possess it may be
disqualified on that basis
ART. 131 – MATERNITY LEAVE
BENEFITS 2 factors to justify a BFOQ

21
1. That the employment qualification is reasonably Regulation of Working Hours of a Child
related to the essential operation of the job
It includes:
involved
2. That there is factual basis for believing that all a. All time during which a child is required
or substantially all persons meeting the to be at a prescribed workplace
qualification would be unable to properly b. All time during which a child is suffered
perform the duties of the job or permitted to work
c. Rest periods of short duration during working
CHAPTER 2 – EMPLOYMENT OF hours shall be considered as hours worked
MINORS
Age bracket Hours of Time not
ART. 137 – MINIMUM EMPLOYABLE AGE work allowed to
(in connection with RA 7610) work
Below 15 Not be more Between
GR: No child below 18 years of age will be than 20 8pm-6am the
allowed to be employed in an undertaking which hours per following day
is hazardous or deleterious in nature. week

EXCEPTIONS: Provided,
A. Below 15 years old work shall
1. The child works directly under the sole not be more
than 4 hours
responsibility of his parents or legal
at any given
guardians & where only members of the day
family are employed, subject to the following Above 15 Not be more Between
conditions: years of age than 8hrs a 10pm-6am of
a. Employment does not endanger the but below 18 day the following
child’s safety, health and morals day
b. Employment does not impair the child’s In no case
normal development beyond 40
c. ER-parent/legal guardian provides the hrs a week
child with education prescribed by DepEd.
2. The child’s employment or participation in
Notes:
public entertainment trough cinema, theater,
radio or television is essential provided: - No ER shall discriminate against any person in
a. Employment contract is concluded by respect to T&C of employment on account of
the child’s parents or legal guardian his age. (Art. 138)
b. With the express agreement of the child
concerned, if possible, and Nonhazardous work or undertaking – one
c. The approval of DOLE, the following where the employee is not exposed to any risk
must be complied with: which constitutes an imminent danger to his
i. The employment does not involve safety and health
advertisement promoting alcoholic The ff. are considered hazardous workplaces:
beverages, intoxicating drinks,
tobacco and its by-products or a. Where the nature of the work exposes the
exhibiting violence workers to dangerous environmental element
ii. There is a written contract approved b. Where the workers are engaged in construction
by DOLE work
iii. The conditions provided in the 1st c. Where the workers are engaged in the
instance are met. manufacture or handling of explosives and
B. Above 15 but below 18 – may be employed in other pyrotechnic products
any non-hazardous work d. Where the workers use or are exposed to heavy
C. Above 18 – no prohibition or power-driven machinery or equipment
e. Where workers use or are exposed to power-
Employment conditions: driven tools
- The total number of hours worked is in
CHAPTER 3 – EMPLOYMENT OF
accordance with Sec. 15, DOLE DO 65-04:
- The employment does not endanger the child’s HOUSEHELPERS (with relation to
life nor impair normal development Batas Kasambahay Law [RA 10361])
- The child is provided with mandatory education ART. 139 – COVERAGE
- Employer secures a work permit for the child

22
 Domestic or household service – services in the Night worker – any employed person whose
employer’s home which is usually necessary for work requires performance of a substantial
the maintenance and enjoyment thereof number of hours of night work which exceeds a
specified limit
ART. 141 – MINIMUM WAGE (as now
provided under RA 10361) - Applies to all persons who shall be employed or
permitted or suffered to work at night
For those in the NCR – P2, 500.00
- Does not cover those employed in agriculture,
For those in chartered cities and 1 st
class stock raising, fishing, maritime transport and
municipalities – P2000.00 inland navigation
- Period of not less than 7 consecutive hours,
For those in other municipalities – P1, 500.00
including the interval from midnight to 5am

Notes:

- Employable age of kasambahay is 15 and ART. 158 – WOMEN NIGHT WORKERS

above
- Conditions for employment of children 15 y.o. Measures shall be taken to ensure that an
but below 18: alternative is available to women workers who
o Shall not be allowed to work for more than would be called upon to perform such work:
8hrs a day and in no case beyond 40hrs a a. Before & after childbirth, for a period of
week at least 16 weeks, which shall be divided
o Shall not be allowed to work between 10pm- between the time before & after
6am childbirth
o Shall not be allowed to do hazardous work b. For additional periods, in respect of
o Shall not be denied access to education and medical certificates stating necessity of
training additional periods:
a. During pregnancy
CHAPTER 4 – EMPLOYMENT OF b. During a specified time beyond
HOMEWORKERS the period, after childbirth is fixed
pursuant to subparagraph a, the
Notes: length shall be determined by
- Materials are furnished by ER; if not, it becomes DOLE
an independent contractor During the periods referred to in this article:
- Doing work at home
i. A woman worker shall not be
Art. 151 – REGULATION OF INDUSTRIAL dismissed or given notice of
HOMEWORKERS dismissal, except for just or
authorized causes that aren’t
Industrial homeworker – a system of production connected with pregnancy, childbirth
under which work for an employer or contractor and childcare responsibilities
is carried out by a homeworker at his home ii. A woman worker shall not lose the
House helpers vs. Homeworkers benefits regarding her status,
seniority and access to promotion
House helpers Homeworkers
Minister to the Performs in or about Pregnant women & nursing mothers may be
personal needs and his own home any allowed to work at night only if they are certified
comfort of his ER in processing or as fit to render night work
the latter’s home fabrication of goods
or materials, in whole HEALTH, SAFETY AND
or in part, which have
been furnished
SOCIAL WELFARE BENEFITS
directly or indirectly,
by an ER and sold TITLE 2 – EMPLOYEES’
thereafter to the latter COMPENSATION AND STATE
INSURANCE FUND
CHAPTER 4 – EMPLOYMENT OF CHAPTER 1 – POLICY AND
HOMEWORKERS DEFINITIONS
ART. 154 – COVERAGE
23
 ART. 172 – POLICY and ART. 173 – - Date of effectivity = Jan. 1, 1975
DEFINITION OF TERMS - Basis of compensability = EE-ER relationship
- The claimant is required to present proof of
- State promotes & develops a tax-exempt
casual relation or aggravation, if the cause of
employees’ compensation program
the disease is still unknown.
2 Kinds of Policy: - The law does not require a direct casual
relation. It is enough that the hypothesis on
- Work-connected disability
which is the workman’s claim is based is
- Death probable
Employee – any persons compulsorily covered - Effectivity of the compulsory coverage (Art.
by the GSIS including, members of the AFP, 176):
and any person employed as casual, o ER – on the 1st day of operation
emergency, temporary, substitute or o EE – on the day of his employment
contractual, or any person compulsorily covered - No claim for compensation shall be given due
by SSS course unless said claim is filed with the
System within 3 years from the time the
Dependents – the legitimate, legitimated, legally
cause of action accrued. (Art. 207)
adopted or acknowledged natural child who is
unmarried, not gainfully employed, and not over Coverage (Art. 174):
21 y.o. or over 21 y.o. provided he is
incapacitated and incapable of self-support due 1. Every ER
to a physical or mental defect; the legitimate 2. Every EE not over 60 y.o.
spouse living the EE; and the parents of said 3. An EE over 60 if he had been paying
EE wholly dependent upon him for regular contributions to the system prior to age 60 &
support has not been compulsorily retired.

Beneficiaries – the dependent spouse until When Compensable

he/she remarries and dependent children, who In general:
are the primary beneficiaries. In their absence,
the dependent parents and subject to the 1. Injury and the resulting disability or death must
restrictions imposed on dependent children, the be the result satisfying all the ff. grounds:
illegitimate children and legitimate a. EE must have been injured at the place
descendants, who are the secondary where his work requires him to be
beneficiaries: Provided, That the dependent b. EE must have been performing his official
acknowledged natural child shall be considered functions; and
as a primary beneficiary when there are no c. If injury is sustained elsewhere, the EE must
other dependent children who are qualified and have been executing an order for the ER
eligible for monthly income benefit. 2. For sickness & the resulting disability or death,
the sickness must be the result of an
Injury – any harmful change in the human occupational disease listed under the IR with
organism from any accident arising out of and in the conditions satisfied, otherwise, proof must
the course of the employment be shown that the risk of contracting the
Sickness – any illness definitely accepted as an disease is increased by the working conditions
occupational disease listed by the Commission, 24 hour doctrine
or any illness caused by employment subject to
proof that the risk of contracting the same is - Members of the national police are, by the
increased by working conditions nature of their functions, technically on duty 24
hours a day because they are subject to call at
Death – loss of life resulting from injury or any time
sickness
Street Peril or Going to/Coming from work
Disability – loss or impairment of a physical or
mental function resulting from injury or sickness GR: In the absence of special circumstances,
an EE injured while going to or coming from his
Employees’ Compensation Law (PD 626) place of work is excluded from the benefits of
- The program provided for in the LC whereby a WCA
fund is established through premium payments EXP:
exacted from ERs and from which the EEs &
their dependents, in the event of work-related 1. Where the EE is proceeding to or from his work
injury, disability or death, may promptly secure on the premises of the ER
adequate benefit
24
2. Proximity rule – where the EE is about to enter 4. Claim was filed beyond 3 years from the time
or about to leave the premises of his ER by way the cause of action accrued. (Art. 207, as
of exclusive or customary means of ingress and amended by PD 1921)
egress
Occupational disease
3. EE is charged, while on his way to or from his
place of employment with some duty or special - Once which results from the nature of the
errand connected with his employment employment and by nature is mean conditions
4. Where the ER as an incident of the employment which all EEs are subject and which produce
provides the means of transportation to and the disease as a natural incident of a particular
from the place of employment occupation and attach to that occupation a
Note: hazard which distinguishes it from the usual run
of occupations and is in excess of the hazard
- The act of going to or coming from the attending the employment in general
workplace must be a continuing act; EE hadn’t - To be occupational, the disease must be wholly
been diverted therefrom; EE didn’t deviate or due to causes and conditions which are normal
departed from his usual route to or from his and constantly present and characteristic of the
workplace particular occupation.
- With regard to an EE on a special errand, the
Theory of increased risk
latter must have been official and in connection
with his work - The term sickness as defined in LC is
recognition of the theory.
Extra-premises / Shuttle Bus Rule
- To establish compensability under the same,
- Injuries suffered by the EE while on board a the claimant must show substantial proof of
means of transportation provided by the ER in work-connection, but what is required is merely
going to or coming from work are compensable a reasonable work-connection and not a direct
causal relation.
Acts of force majeure - Proof of actual cause of the ailment is not
GR: Not compensable when the EE has not necessary.
been exposed to a greater danger than usual - The test of evidence of relation of the disease
with the employment is probability and not
EXP: Positional and local risks doctrine – certainty.
whereby the EE, because of his duties, was - An illness not listed by the ECC as an
exposed to a special or peculiar danger from occupational disease is compensable provided
the elements, that is, one which is greater than that it is established that the risk of contracting
that to which other persons in the community the same is increased by working conditions
are exposed. The unexpected injury sustained
by reason of such elements is considered as CHAPTER 2 – COVERAGE AND
arising out of and in the course of employment LIABILITY
ART. 179 – EXTENT OF LIABILITY
Presumptive compensability
- Unless otherwise provided, the liability of the
- Applicable when the victims are police officers State Insurance Fund shall be exclusive and in
& military men. Their injuries and death are place of all other liabilities of the employer to
compensable under the doctrine of presumptive the employee, his dependents or anyone
compensability otherwise entitled to receive damages on behalf
of the employee or his dependents.
Defenses that may be interposed by the state
insurance fund against a claim for ART. 180 – LIABILITY OF THIRD PARTIES
compensation made by a covered EE or his
dependents - When the disability/death is caused by
circumstances creating a legal liability against a
1. Injury isn’t work-connected or the sickness isn’t third party, the disabled EE or the dependents
occupational in case of his death shall paid by the System.
2. Disability or death was occasioned by the EE’s - In case benefit is paid, the system shall be
intoxication, willful intention to injure or kill subrogated to the rights of the disabled EE or
himself or another, or his notorious negligence the dependents in case of his death, in
(Art. 172 & Art. 178) accordance with the general law.
3. No notice of sickness, injury or death was given
to the ER (Art. 206) ART. 181 – DEPRIVATION OF BENEFITS

25
- No contract, regulation, or device shall operate exceed 240 days from onset of disability in
to deprive the employee or his dependents of which case benefit for temporary total disability
any part of the income benefits, and medical or shall be paid
related services granted.
Relapse
- Except as otherwise provided
- After an EE has fully recovered from an illness,
CHAPTER 2 – COVERAGE AND the period covered by any relapse he suffers, or
LIABILITY recurrence of his illness, which results in
disability, shall be considered independent of, &
Disability – loss or impairment of earning separate from, the period covered by the
capacity original disability.
Total disability – disablement of an employee to - Where, after the period of temporary total
earn wages in the same kind of work, or a work disability had ceased, an EE was found to be
of similar nature, that he was trained for or suffering from a permanent partial disability, he
accustomed to perform, or any kind of work was entitled to an award based upon partial
which a person of his mentality and attainment disability permanent in character.
could do
ART. 198 – PERMANENT TOTAL
- The object of the law in allowing compensation DISABILITY
during temporary disability is to compensate the
- Unable to perform any gainful occupation for a
employee for what he might have earned during
the period of the treatment of his injury. On the continuous period exceeding 120 days except
other hand, the object of the law in granting as otherwise provided.
compensation for a permanent disability is to - The test of W/N an EE suffers from permanent
compensate the injured employee for the actual total disability from permanent partial is a
and permanent loss of a member of the body or showing of the capacity of the EE to
the use thereof. (Canete v. Insular Life) continue perform his his work
notwithstanding the disability he incurred
ART. 197 – TEMPORARY TOTAL
DISABILITY Permanent total disability – an incapacity to
perform gainful work which is expected to be
- As a result of the injury or sickness, the permanent
employee is unable to perform any gainful
Instances that are considered total & permanent
occupation for a continuous period not
disability
exceeding 120 days, except as otherwise
provided in Rule X. 1. Temporary total disabilities lasting continuously
for more than 120 days, except as otherwise
Amount of benefits
provided
- income benefit equivalent to 90% of his average 2. Complete loss of sight of both eyes
daily salary credit, subject to the ff. conditions: 3. Loss of 2 limbs at or above the ankle or wrist
1. the daily income benefit shall not be less that 4. Permanent complete paralysis of 2 limbs
P10.00 or more than P90.00 nor paid longer 5. Drain injury resulting in incurable imbecility and
than 120 days for the same disability, unless insanity
the injury or sickness requires more 6. Such cases as determined by the System and
extensive treatment that lasts beyond 120 approved by the Commission
days, but not to exceed 240 days from onset Period of entitlement
of disability, in which case he shall be paid
benefit for temporary total disability during - Paid for all compensable months of disability
the extended period. - Except as otherwise provided for in other laws,
2. The monthly income benefit shall be the monthly income benefit shall be guaranteed
suspended if the employee fails to submit a for 5 years
monthly medical report certified by its
attending physician. Amount of Benefits

Period of entitlement - In the case of SSS – any EE entitled to

permanent total disability benefit shall be paid a
- Begins on the 1st day of such disability monthly income benefit
- If caused by an injury or sickness, it shall not be
paid longer than 120 consecutive days except ART. 199 – PERMANENT PARTIAL
where such injury or sickness still requires DISABILITY
medical attendance beyond 120 days but not to

26
- A disability is partial & permanent if as a result 1. Agricultural & non-agricultural workers
of the injury or sickness the EE suffers a 2. Apprentice, learners, and handicapped workers
permanent partial loss of the use of any part of 3. Managerial employees
his body 4. Workers paid by results
5. Women, minors, househelpers and
Amount of benefits homeworkers
6. Regular
- Paid a monthly income benefit for the number of
7. Casual
months indicated in Art. 199 (see codal)
8. Probationary employees
- If the indicated number of months exceeds 12,
he income benefit shall be paid in monthly Classification of employments covered by the
pension LC

Permanent Total vs. Permanent Partial Nature of activities – agricultural & non-
agricultural
Permanent Total Permanent Partial
Invariably results in Occurs when an EE Nature of worker’s responsibilities – managerial,
an EE’s loss of work loses the use of any supervisory, rank-and-file
or inability to perform particular anatomical
his usual work part of his body Importance of workers’ functions to the
which disables him to business or undertaking of the ER – regular &
continue his former casual
work
Period of employment – for an indefinite period,
for a fixed term, project, specific undertaking,
KINDS OF EMPLOYEES particular season, probationary

Employer – one who employs the services of KINDS OF EMPLOYEES

others; one for whom employees work and who AGRICULTURAL OR FARM WORKER
pays their wages or salaries
- One employed in an agricultural or farm
- Any person acting in the interest of an enterprise and assigned to perform tasks which
employer, directly or indirectly. The term does are directly related to the agricultural activities
not include a labor organization or any of its of the employer and any activities performed by
officers and agents, EXCEPT when acting as a farmer on a farm as an incident to or in
an employer. conjunction with such farming operations
Employee – one who works for an employer; a REGULAR EMPLOYEES
person working for salary or wages
- Those who are hired for activities which are
- Shall not be limited to the employees of a necessary or desirable in the usual trade or
particular employer, and it shall include any business of the employer (Art. 295)
individual whose work has ceased as a result of
- An employment shall be deemed to be casual if
or in connection with any current labor dispute
it is not covered by the preceding paragraph:
or because of any unfair labor practice if he has
Provided that, any employee who has rendered
not obtained any other:
at least 1 year of service, whether such service
1. Substantially equivalent and
is continuous or broken, shall be considered a
2. Regular employment
regular employee with respect to the activity in
Types of Labor Disputes which he is employed and his employment shall
continue while such actually exists
Labor standards disputes
- A regular employee is similar to an
a. Compensation indispensable component in the corporate
b. Benefits machine.
c. Working conditions - Under the law, regular employees are those
hired for activities which are necessary or
Labor relations disputes
desirable in the usual business of the employer.
a. Organizational right dispute/unfair labor practice Therefore, a regular employee enjoys the
b. Representation disputes benefit of security of tenure as guaranteed by
c. Bargaining disputes the Constitution.
d. Contract administration or personnel policy - The employee cannot simply be terminated,
disputes other than those just and authorized causes as
e. Employment tenure disputes provided by law
Classes of workers mentioned in the LC PROJECT EMPLOYEES
27
- The principal test for determining whether 2. Such duration, as well as the specific
particular employees are properly work/service to be performed, is defined in an
characterized as “project employees” as employment agreement and is made clear to
distinguished from “regular employees” is the employee at the time of hiring
whether or not the project employees were 3. The work/service performed by the employee is
assigned to carry out a “specific project or in connection with the particular
undertaking” , the duration and scope of which project/undertaking for which he is engaged
were specified at the time the employees were 4. The employee, while not employed and
engaged for that project awaiting engagement, is free to offer his
- The length of period and scope of the work services to any other employer
must be specified at the time that the 5. The termination of his employment in the
employees were hired for the project. particular project is reported to the DOLE
- The company must, however, see to it that they Regional Office having jurisdiction over the
workplace within 30 days following the date of
comply with the termination report of project
his separation from work, using the prescribed
employees. This is compulsory under the law,
form on employees’
for failure to do so would indicate that the
terminations/dismissals/suspensions
worker was not a project employee but a
6. An undertaking in the employment contract by
regular employee.
the employer to pay completion bonus to the
- The length of service or the re-hiring of
project employee as practiced by most
construction workers on a project-to-project
construction companies
basis doesn’t confer upon them regular
employment status since their rehiring is only a PROBATIONARY EMPLOYEES
natural consequence of the fact that
experienced construction workers are preferred - Those who are hired generally for regular
(Aro v. NLRC) positions but are placed on a probationary
- A project employee is assigned to a project status for a period of 6 months (as a general
rule)
which begins and ends at determined or
determinable times (Goma v. Pamplona) - May become regular once he has qualified as
- The services of employees who are hired as such in accordance with reasonable standards
made known to him at the time of hiring. They
project employees may be lawfully terminated
are considered regular if they are allowed to
at the completion of the project (GMA v.
work beyond the probationary period.
Pabriga)
- The employee is in the evaluating or qualifying
- Stipulation on contract providing for a fixed
stage and he may be converted to regular
period of employment such as project-to-project
status if his performance is up to par with the
contract is valid provided the period was agreed
company standard. Such standards must be
upon knowingly & voluntarily by the parties,
made known to the employee at the time of
without any force, duress or improper pressure
hiring.
being brought to bear upon the employee and
absent any other circumstances vitiating his - If such employee is allowed to work beyond the
consent. (Caramol v. NLRC) probationary period, even if designated as an
- Project employees, due to the nature of their extension period, then he is protected by the
law and considered as a regular employee. (Art.
employment, are not entitled to separation pay
281)
for termination or separation from employment
due to the completion of the project. May only be terminated if:
- The services of project employees are
coterminous with the project. They may be 1. For a just cause
terminated upon end or completion of that 2. When the employee fails to qualify as a regular
project or phase thereof for which they were employee in accordance with the reasonable
hired. standards made known to him by the employer
at the start of his employment
Indicators of project employment
Note: Temporary employment status. Employee
Either one or more of the following terminable anytime as long as such termination
circumstances, among others, may be is made before the expiration of the 6-month
considered as indicators that an employee is a probationary period.
project employee:
GR: Probationary employment shall not exceed
1. The duration of the specific/identified 6 months from the date the employee started
undertaking for which the worker is engaged is working.
reasonably determinable
EXCEPTIONS:

28
 1. When it is covered by an apprenticeship are in regular employment because of the
agreement stipulation a longer period; or nature of their job, and not because of the
2. When the parties to an employment length of time they have worked. (Gapayao v.
contract agree otherwise, such as when Fulo)
the same is established by company
CASUAL EMPLOYEES
policy or when the same is required by
the nature of the work to be performed - Those who are hired to perform work or service
by the employee which is merely incidental to the business of the
FIXED TERM EMPLOYEES employer.
- Any casual employee who has rendered at least
- Also known as fixed term work 1 year of service, whether it be continuous or
- Term employees are those who are hired for a broken, shall be considered a regular employee
specific period only. with respect to the activity for which he is
- The arrival of the date in the contract employed, and his employment shall continue
automatically terminates him as an employee in while such activity exists
the company
CONFIDENTIAL EMPLOYES
2 Elements to consider so that term
Those who:
employment contracts will not circumvent
security of tenure: 1. Assist or act in a confidential capacity
2. To persons who formulate, determine,
1. The fixed period of employment should be
and effectuate management policies in
knowingly and voluntarily agreed upon by
the field of labor relations
the parties without any force or pressure
affecting his consent
2. It should appear that the employer and
employee dealt with each other on more or - The 2 criteria are cumulative & both must be
less equal terms, with no moral dominance met if an employee is to be considered a
exerted by the employer at the disadvantage of confidential employee
the employee - The confidential relationship must exist between
the employee and his supervisor and the
Term employees – those who are hired for a supervisor must handle the prescribed
specific period, the arrival of the date specified responsibilities relating to labor relations.
in the contract of which automatically terminates
- The exclusion from bargaining units of the
the employee-employer relationship (Brent
employees who, in the normal course of their
School v. NLRC)
duties, become aware of management policies
SEASONAL EMPLOYEES relating to labor relations is a principal objective
sought to be accomplished by the “confidential
- Those hired for activities which are called to employee rule”. (TPMA Brewery v. Asia
work from time to time. Brewery)
- May include regular seasonal employees, who
are temporarily laid off or suspended during the
off season.
- But during Christmas holidays, for example,
when their services may be needed, they are EMPLOYEE CLASSIFICATION AS TO RANK
hired by the company. Regular seasonal MANAGERIAL EMPLOYEES
employees are “not separated from service but
merely considered on leave of absence without - Those vested with powers or prerogatives to
pay until re-employed.” law down and execute management policies
and/or to hire, transfer, suspend, lay-off, recall
employees (Art. 212)
Seasonal employees – those hired for work or SUPERVISORY EMPLOYEES
services where is seasonal in nature, and the
employment is for the duration of the season - Those who, in the interest of management,
effectively recommend such managerial actions
Regular seasonal employees – those called to
if the exercise of such authority is not merely
work from time to time. The nature of their
routinary or clerical in nature, but requires use
relationship with the employer is such that
of independent judement (Art. 212)
during the off season, they are temporarily laid
- They form part of the managerial staff, which
off; but reemployed during the summer season
or when their services may be needed. They are not covered by the rules on hours of work,
NSD, OT pay, etc. (Art. 82)
29
 RANK-AND-FILE EMPLOYEES

- All other employees not falling within the

definition of managerial or supervisory
employees

30