San Beda College Alabang, School of Law

Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023

Antonina Diola Concepcion, 2D

LABOR STANDARDS - POST MT / FINALS NON-DIMINUTION / NON-ELIMINATION OF BENEFITS

1. If the employer diminishes the wages, without the consent of the employee, that cannot be
April 23, 2023 done because it lessens the benefits of the employee.
Art. 97. Definitions. As used in this Title: a. Sometimes referred to non-elimination (employer totally cancels or withdraws
“Person” means an individual, partnership, association, corporation, business trust, legal benefits)
representatives, or any organized group of persons. 2. Why is it prohibited? There are vested rights on these benefits.

“Employer” includes any person acting directly or indirectly in the interest of an employer in FACILITIES AND SUPPLEMENTS
relation to an employee and shall include the government and all its branches, subdivisions and
instrumentalities, all government-owned or controlled corporations and institutions, as well as In a company setting, there are instances where the employer provides services, articles, or goods
non-profit private institutions, or organizations. to the employees other than the wages. General rule is wages are paid by cash.

“Employee” includes any individual employed by an employer. GENERAL RULE: Wages should be paid fully and completely. The employer cannot deduct or
withhold any amount from the wages of the employee.
“Agriculture” includes farming in all its branches and, among other things, includes cultivation
and tillage of soil, dairying, the production, cultivation, growing and harvesting of any EXEMPTION: there are two mentioned in the Labor Code wherein the employer may deduct
agricultural and horticultural commodities, the raising of livestock or poultry, and any practices a. Insurance premium where, if the employee is insured by the employer — with the consent
performed by a farmer on a farm as an incident to or in conjunction with such farming of the employee — the premium may be deducted and remitted to the insurance company
operations, but does not include the manufacturing or processing of sugar, coconuts, abaca, b. Union dues that are regularly collected from each member where, instead of the union
tobacco, pineapples or other farm products. members directly paying to the union, the employer can collect from employees by way of
salary deduction. These deductions are remitted directly to the union.
“Employ” includes to suffer or permit to work.
Let us say aside from cash or bank remittances through ATM, representing the salary of the
“Wage” paid to any employee shall mean the remuneration or earnings, however designated, employees, the employer gives other services such as transportation to and from a certain point up
capable of being expressed in terms of money, whether fixed or ascertained on a time, task, to the company premises, lunch, dwelling (barracks) or company employee housing facilities. Are
piece, or commission basis, or other method of calculating the same, which is payable by an these articles provided by the employer part or not part of the employees wages?
employer to an employee under a written or unwritten contract of employment for work done or
to be done, or for services rendered or to be rendered and includes the fair and reasonable value, 1. If part of the salary, then these can be deducted from the wages of the employees.
as determined by the Secretary of Labor and Employment, of board, lodging, or other facilities 2. If not part of the salary, meaning considered over and above the wages of the employees
customarily furnished by the employer to the employee. “Fair and reasonable value” shall not or extra remuneration and benefits, then necessarily these cannot be deducted from the
include any profit to the employer, or to any person affiliated with the employer. wages of the employees.

Purpose Test: The main test in determining whether such is part of facilities or supplements is “for
Art. 99. Regional minimum wages. The minimum wage rates for agricultural and whose primary benefit is this service or item? What is the purpose”?
non-agricultural employees and workers in each and every region of the country shall be those (a) If the purpose is for the benefit of the members of his family, it is considered as facilities.
prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, (b) However, if otherwise, if purpose and benefit is for the employer, then it is considered a
Republic Act No. 6727, June 9, 1989). supplement. You have to look at the circumstances.

Art. 100. Prohibition against elimination or diminution of benefits. Nothing in this Book shall be i. Facilities. Facilities are goods or services provided by the employer to
construed to eliminate or in any way diminish supplements, or other employee benefits being the employee which form part of the wages of the employee.
enjoyed at the time of promulgation of this Code.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

b. Ultimate legal question is, is it deductible or not to the wages of the employees?
Art. 106. Contractor or subcontractor.
What is the legal significance?
Whenever an employer enters into a contract with another person for the performance of the
former’s work, the employees of the contractor and of the latter’s subcontractor, if any, shall be
Supplements (cannot be deducted from the employees)
paid in accordance with the provisions of this Code.
They are services or items or articles provided by the employer which are considered as extra
remuneration / benefit over and above the wages of the employee. It cannot be deducted from the
In the event that the contractor or subcontractor fails to pay the wages of his employees in
employees.
accordance with this Code, the employer shall be jointly and severally liable with his contractor
or subcontractor to such employees to the extent of the work performed under the contract, in
It cannot be deducted from the salary, but can it be diminished? → Depends. Take note of the
the same manner and extent that he is liable to employees directly employed by him.
following requisite on the rule of non-diminution of benefits in relation to supplements.
The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the
For non-diminution of benefits rule to apply to supplements:
contracting-out of labor to protect the rights of workers established under this Code. In so
1. The benefits in question must have been given by the employer intentionally and
prohibiting or restricting, he may make appropriate distinctions between labor-only contracting
deliberately.
and job contracting as well as differentiations within these types of contracting and determine
2. It must be repeatedly done for a long period of time (there is no definite prescription, so it
who among the parties involved shall be considered the employer for purposes of this Code, to
will be treated in a case to case basis).
prevent any violation or circumvention of any provision of this Code.
3. It has now ripened into company practice.
There is “labor-only” contracting where the person supplying workers to an employer does not
What is the significance of the act given has become a company practice? It now ripened into a
have substantial capital or investment in the form of tools, equipment, machineries, work
company policy. Company policy is like a law within the company.
premises, among others, and the workers recruited and placed by such person are performing
activities which are directly related to the principal business of such employer.
Facilities (can be deducted from the employees because they form part of the wages)
The employer may deduct from the wages of the employees the reasonable and fair value of those
In such cases, the person or intermediary shall be considered merely as an agent of the
facilities.
employer who shall be responsible to the workers in the same manner and extent as if the latter
were directly employed by him.
Employer may deduct reasonable and fair value sa facilities, with requirements
1. Facilities customarily provided by the employer
Art. 107. Indirect employer.
2. The amount deducted is fair and reasonable in value
The provisions of the immediately preceding article shall likewise apply to any person,
3. That arrangement must be accepted in writing by employees
partnership, association or corporation which, not being an employer, contracts with an
*Note that there is a DOLE order on the inspection sa facilities, and the determination of the fair
independent contractor for the performance of any work, task, job or project.
and reasonable value to ask from your employees before the deduction from the salary.
Art. 108. Posting of bond.
Why does the law allow the employer to deduct the fair and reasonable value of the facilities
An employer or indirect employer may require the contractor or subcontractor to furnish a bond
from the wages? Since these are for the subsistence of the employee and members of his
equal to the cost of labor under contract, on condition that the bond will answer for the wages
immediate family, regardless whether the employer provides these facilities, the employee will still
due the employees should the contractor or subcontractor, as the case may be, fail to pay the
spend anyway elsewhere.
same.
+ Providing housing facilities, the reasonable value can be provided as the employee will still
look for housing options, or in terms of groceries, since they will still do groceries
Art. 109. Solidary liability.
regardless of the employer providing them that.
The provisions of existing laws to the contrary notwithstanding, every employer or indirect
employer shall be held responsible with his contractor or subcontractor for any violation of any
Of course if these are only considered as facilities. If supplements, it cannot be deducted. (E.g.
provision of this Code. For purposes of determining the extent of their civil liability under this
Every dinner employer provides 2,000 over and above wages. It’s extra, it cannot be deducted from
Chapter, they shall be considered as direct employers.
the wages. It also cannot be withdrawn if it ripens into company policy.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

JOB CONTRACTING, LABOR ONLY CONTRACTING

Art. 128. Visitorial and enforcement power.
San Beda is the principal and X construction company as the contractor.
The Secretary of Labor and Employment or his duly authorized representatives, including labor
regulation officers, shall have access to employer’s records and premises at any time of the day
What is the relationship between principal San Beda, X construction company? What law governs
or night whenever work is being undertaken therein, and the right to copy therefrom, to question
them?
any employee and investigate any fact, condition or matter which may be necessary to
- San Beda and X construction. They are in a job-contractor relationship. Their relationship
determine violations or which may aid in the enforcement of this Code and of any labor law, wage
is covered by the Civil Code, in particular the sections on independent contractors. They
order or rules and regulations issued pursuant thereto.
are governed by the law on obligation and contracts.
- X construction and its workers and employees. Their relationship is employer-employee
Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and in cases
based on the four fold test and is covered by the Labor Code.
where the relationship of employer-employee still exists, the Secretary of Labor and
- San Beda and workers. The relationship is one where San Beda is an indirect employer of
Employment or his duly authorized representatives shall have the power to issue compliance
the workers. In terms of liability, for example X construction becomes insolvent, San Beda
orders to give effect to the labor standards provisions of this Code and other labor legislation
(principal) will be held solidarily liable with X construction company.
based on the findings of labor employment and enforcement officers or industrial safety
- Their joint and solidary liability is regarding unpaid wages for services performed
engineers made in the course of inspection. The Secretary or his duly authorized
or rendered under the contract as the principal, San Beda, is an indirect employer
representatives shall issue writs of execution to the appropriate authority for the enforcement
of the employees.
of their orders, except in cases where the employer contests the findings of the labor
- However the liability, although joint and solidary, is only up to the extent of the
employment and enforcement officer and raises issues supported by documentary proofs which
unpaid wages for services already rendered, not for future services or anything
were not considered in the course of inspection. (As amended by Republic Act No. 7730, June 2,
else, such as SSS, PhilHealth, etc. This is because San Beda is not a direct
1994).
employer, just indirect by virtue of absence, insolvency / bankruptcy of X
construction company. X construction company is still the direct employer.
An order issued by the duly authorized representative of the Secretary of Labor and
Employment under this Article may be appealed to the latter. In case said order involves a
What if X construction company is later on found out to be a labor-only contractor?
monetary award, an appeal by the employer may be perfected only upon the posting of a cash or
Between X construction company and San Beda, the principal is San Beda and X construction
surety bond issued by a reputable bonding company duly accredited by the Secretary of Labor
company is the agent and the law on agency under the Civil Code will govern their relationship.
and Employment in the amount equivalent to the monetary award in the order appealed from. (As
amended by Republic Act No. 7730, June 2, 1994)
San Beda is now the direct employer. San Beda will now be held liable for all the benefits, illegal
dismissal, etc. and will be covered by the Labor Code.
The Secretary of Labor and Employment may likewise order stoppage of work or suspension of
operations of any unit or department of an establishment when non-compliance with the law or
Note that this labor contractor or labor-only contracting arrangement is PROHIBITED BY LAW.
implementing rules and regulations poses grave and imminent danger to the health and safety
+ You provide man power and deploy workers but have no other investments, equipment,
of workers in the workplace.
machineries, tools. You cannot be a construction company if you do not have the necessary
tools, equipment, machineries and work premises.
Within twenty-four hours, a hearing shall be conducted to determine whether an order for the
+ This arrangement is contrary to security of tenure as there will be a confusion as to who
stoppage of work or suspension of operations shall be lifted or not. In case the violation is
the real employer is. It is also generally engaged in illegal recruitment wherein the
attributable to the fault of the employer, he shall pay the employees concerned their salaries or
activities are undertaken by those not permitted to recruit. You merely recruited and
wages during the period of such stoppage of work or suspension of operation.
deployed to the principal with no license.
It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render
How do we know if X company is labor only or independent?
ineffective the orders of the Secretary of Labor and Employment or his duly authorized
Independent contracting is legitimate or authorized if it has substantial capital or substantial
representatives issued pursuant to the authority granted under this Article, and no inferior court
investment in the form of tools, equipment, machineries, work premises, etc.
or entity shall issue temporary or permanent injunction or restraining order or otherwise
assume jurisdiction over any case involving the enforcement orders issued in accordance with
Remember TEMP - tools, equipment, machineries, work premises

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

VISITORIAL, ARTICLE 128 AND 129

this Article.
ARTICLE 128. Visitorial and enforcement power.
Any government employee found guilty of violation of, or abuse of authority, under this Article
→ Refers to visitorial and enforcement power of the Secretary of Labor or duly-authorized
shall, after appropriate administrative investigation, be subject to summary dismissal from the
representative (it is usually Regional Director)
service.
Why visitorial and enforcement powers?
The Secretary of Labor and Employment may, by appropriate regulations, require employers to
- Labor Code empowers the Secretary and his duly-authorized representatives have ocular
keep and maintain such employment records as may be necessary in aid of his visitorial and
inspection to check if employers are following labor standards and social legislation
enforcement powers under this Code.
- The Secretary and his duly-authorized representatives may inspect the employers records,
he may ask or require the presentation of relevant documents or records. He may ask the
Art. 129. Recovery of wages, simple money claims and other benefits.
employees or question employees in the premises. (Tama ba sweldo niyo? Di kayo
Upon complaint of any interested party, the Regional Director of the Department of Labor and
pinapahirapan?)
Employment or any of the duly authorized hearing officers of the Department is empowered,
- If the Secretary and his duly-authorized representatives find out that there are violations,
through summary proceeding and after due notice, to hear and decide any matter involving the
they may order the employer to comply through a compliance order (We hereby ask the
recovery of wages and other monetary claims and benefits, including legal interest, owing to
employer to comply with the following…)
an employee or person employed in domestic or household service or househelper under this
- Motu proprio → This is the use of police power. The employee does not need to complain
Code, arising from employer-employee relations: Provided, That such complaint does not include
before the Secretary and his duly-authorized representatives can inspect.
a claim for reinstatement: Provided further, That the aggregate money claims of each employee
or househelper does not exceed Five thousand pesos (P5,000.00). (THIS LIMITATION IS NO
When is stoppage or stopping of operations allowed?
LONGER APPLICABLE IN ACCORDANCE WITH RECENT JURISPRUDENCE)
If there is an issue of nonpayment, stoppage is not allowed under the code.
The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30)
When there is grave and imminent danger to the safety and health of workers, then the Secretary
calendar days from the date of the filing of the same. Any sum thus recovered on behalf of any
of Labor or his duly-authorized representative can order stoppage or suspension of work or
employee or househelper pursuant to this Article shall be held in a special deposit account by,
operation in the employer's premises.
and shall be paid on order of, the Secretary of Labor and Employment or the Regional Director
directly to the employee or househelper concerned.
ARTICLE 129. Recovery of wages, simple money claims and other benefits.
→ Refers to recovery of simple money claims (underpayment, nonpayment)
Any such sum not paid to the employee or househelper because he cannot be located after
diligent and reasonable effort to locate him within a period of three (3) years, shall be held as a
Read article 129 closely, these actions are normally initiated by an employee. Employee goes to
special fund of the Department of Labor and Employment to be used exclusively for the
DOLE and then files claims. It is upon the initiation of an interested employee.
amelioration and benefit of workers.
OLD RULE: In Article 129, the threshold is 5,000. If you are an employee and you filed a complaint
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision
with the Regional Director of DOLE (or representative), the claim should not exceed 5,000.
may be appealed on the same grounds provided in Article 223 of this Code, within five (5)
+ If 3,000, it can be accommodated. If more than 5,000, that is no longer under the Regional
calendar days from receipt of a copy of said decision or resolution, to the National Labor
Director of the DOLE. You file it then with the Labor Arbiter (check jurisdiction of Labor
Relations Commission which shall resolve the appeal within ten (10) calendar days from the
Arbiter).
submission of the last pleading required or allowed under its rules.
NEW RULE: By virtue of the Supreme Court ruling in People’s Broadcasting Network v. Secretary of
The Secretary of Labor and Employment or his duly authorized representative may supervise the
DOLE (G.R. No. 179652), that 5,000 limitation is no longer applicable. Even if the claim is more than
payment of unpaid wages and other monetary claims and benefits, including legal interest, found
5,000, the Regional Director can take cognizance of that complaint.
owing to any employee or househelper under this Code. (As amended by Section 2, Republic Act
No. 6715, March 21, 1989)
In that case, the question was, “Does the Regional Director have jurisdiction to cases more than
5,000 money claims considering Article 129 of the Labor Code?”

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

The Supreme Court had the occasion to discuss Articles 128 and 129.
(d) The needs of workers and their families;
+ Article 129 → Normally it is a complaint initiated by an employee. For that to apply, there
(e) The need to induce industries to invest in the countryside;
must be a complaint from an interested employee. This is not required under 128.
(f) Improvements in standards of living;
+ Article 128 also has been expressly amended by RA7730. Purpose is to broaden and
(g) The prevailing wage levels;
strengthen the powers of the sec of labor under 128.
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
Doctrines in People’s Broadcasting Network v. Secretary of DOLE (G.R. No. 179652)
1. The money claims that may be entertained or is under the jurisdiction of the Regional
The equitable distribution of income and wealth along the imperatives of economic and social
Director to resolve may be beyond 5,000.
development.
a. The Regional Director has power and authority to determine employer-employee
relationships, and not just Labor Arbiter.
The wages prescribed in accordance with the provisions of this Title shall be the standard
2. When it comes to simple money claims filed by employee against employer arising from
prevailing minimum wages in every region. These wages shall include wages varying with
their employee-employer relationship, the Regional Director has authority and jurisdiction
industries, provinces or localities if in the judgment of the Regional Board, conditions make such
to hear or decide such issue, PROVIDED, at the time of the filing of the complaint, there
local differentiation proper and necessary to effectuate the purpose of this Title.
is/was an existing employer-employee relationship between the parties.
a. Which means that if at the time of the filing of the complaint, it was a different
Any person, company, corporation, partnership or any other entity engaged in business shall file
situation, after clarificatory questions the Regional Director finds out no
and register annually with the appropriate Regional Board, Commission and the National
employer-employee relationship, it shall be dismissed. It is no longer under the
Statistics Office, an itemized listing of their labor component, specifying the names of their
jurisdiction of the Regional Director but with the Labor Arbiter.
workers and employees below the managerial level, including learners, apprentices and
b. If, for example, he hasn’t been paid and there is now a different employer, there is
disabled/handicapped workers who were hired under the terms prescribed in the employment
dismissal that is questioned, it is also not under the jurisdiction of the Regional
contracts, and their corresponding salaries and wages.
Director. It should be the Labor Arbiter because there are reinstatement issues or
questions of illegal dismissal.
Where the application of any prescribed wage increase by virtue of a law or wage order issued by
c. You’re 65 years old and retired but your payment is not complete, you are now just
any Regional Board results in distortions of the wage structure within an establishment, the
looking for money claims and not reinstatement since you’re retired. Since you’re
employer and the union shall negotiate to correct the distortions. Any dispute arising from wage
retired, there is no longer an employee-employer relationship. Therefore, even if it
distortions shall be resolved through the grievance procedure under their collective bargaining
was only for simple money claims, the fact that there is no existing
agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed
employer-employee relationship at the time of the filing, the Labor Arbiter will
by the parties in writing, such dispute shall be decided by the voluntary arbitrators within ten (10)
have the proper jurisdiction, not the Regional Director.
calendar days from the time said dispute was referred to voluntary arbitration.
NOTE: Simple money claims → no claim of reinstatement, no questions on illegal dismissal etc.
In cases where there are no collective agreements or recognized labor unions, the employers
Really just about getting your money.
and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be
settled through the National Conciliation and Mediation Board and, if it remains unresolved after
Art. 124. Standards/Criteria for minimum wage fixing. The regional minimum wages to be ten (10) calendar days of conciliation, shall be referred to the appropriate branch of the National
established by the Regional Board shall be as nearly adequate as is economically feasible to Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous
maintain the minimum standards of living necessary for the health, efficiency and general hearings and decide the dispute within twenty (20) calendar days from the time said dispute is
well-being of the employees within the framework of the national economic and social submitted for compulsory arbitration.
development program. In the determination of such regional minimum wages, the Regional
Board shall, among other relevant factors, consider the following: The pendency of a dispute arising from a wage distortion shall not in any way delay the
applicability of any increase in prescribed wage rates pursuant to the provisions of law or wage
(a) The demand for living wages; order.
(b) Wage adjustment vis-à-vis the consumer price index;
(c) The cost of living and changes or increases therein; As used herein, a wage distortion shall mean a situation where an increase in prescribed wage

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

Will Rank 2 and Rank 3 also have an additional 50 pesos. No. Why? When the RWB issues a wage
rates results in the elimination or severe contraction of intentional quantitative differences in
order mandating the minimum wage increase, the affected ones are only the minimum wage
wage or salary rates between and among employee groups in an establishment as to
earners. Rank 1 are the only minimum wage earners, not Rank 2 or Rank 3.
effectively obliterate the distinctions embodied in such wage structure based on skills, length
of service, or other logical bases of differentiation.
Because of that wage order, there will now be a wage distortion in that particular company. Now,
there is an elimination or severe contraction of the intentional quantitative differences in their
All workers paid by result, including those who are paid on piecework, takay, pakyaw or task
salary rate.
basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a
proportion thereof for working less than eight (8) hours.
The law says wage distortion should be resolved as early as possible because it results in several
frustrated employees. If there is a Collective Bargaining Agreement, the employer and the
All recognized learnership and apprenticeship agreements shall be considered automatically
employees can discuss it.
modified insofar as their wage clauses are concerned to reflect the prescribed wage rates. (As
amended by Republic Act No. 6727, June 9, 1989)

WAGE DISTORTION April 30, 2023

ARTICLE 124. Standards or criteria for minimum wage fixing. Art. 86. Night shift differential. Every employee shall be paid a night shift differential of not less
- A wage distortion shall mean a situation where an increase in prescribed wage rates than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock
results in the elimination or severe contraction of intentional quantitative differences in in the evening and six o’clock in the morning.
wage or salary rates between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage structure based on skills, Art. 96. Service charges. All service charges collected by hotels, restaurants and similar
length of service, or other logical bases of differentiation. establishments shall be distributed at the rate of eighty-five percent (85%) for all covered
employees and fifteen percent (15%) for management. The share of the employees shall be
“Intentional quantitative differences in wage or salary rates between employee groups” equally distributed among them. In case the service charge is abolished, the share of the
E.g. You have several employees in Company A. covered employees shall be considered integrated in their wages.

Rank 1 → 1-2 years of work experience, earning 590 pesos. SERVICE CHARGE AND NIGHT SHIFT DIFFERENTIALS
Rank 2 → 3-5 years of work experience, earning 650 pesos.
Rank 3 → 6 + years of work experience, earning 750 pesos. ARTICLE 96: Service charges
There is supposed to be a distribution scheme which is 85+15:
A wage order is subsequently issued by the Regional Tripartite Wages Productivity Board (RTWPB). + 85 (service charges - covered employees)
This is the board that prescribes minimum wage by Issuing a wage order. (Note that it is normally in + 15 (management).
a specific region and not the whole country; they are authorized to provide wage orders as Congress
cannot be expected to do all of that). This article has been amended by RA 360 passed in 2015. This article is no longer there as far as
distribution. Service charges are given and distributed completely to the covered employees. No
The wage order mandated the increase of minimum wage by 50 pesos for rank 1 employees. The longer any amount that will be distributed or given to the management.
result will be:
ARTICLE 86. Night shift differentials
Rank 1 → 1-2 years of work experience, now earns 590+50 = 640 pesos. The article requires or mandates the additional payment. It is either a premium differential or a
Rank 2 → 3-5 years of work experience, earning 650 pesos. salary of 10% in addition to the regular wage or salary of the employee. This additional 10% night
Rank 3 → 6 + years of work experience, earning 750 pesos. shift differential is given when the employee renders work from 10 pm - 6 am, in recognition of the
differences between work performed during morning night time as there are adverse effects on
workers who keep working during night time.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

Night workers
In relation to this, read RA 10151. This is regarding night workers. "A night worker certified as temporarily unfit for night work shall be given the same protection against dismissal
or notice of dismissal as other workers who are prevented from working for reasons of health."
"Article 154. Coverage. - This chapter' shall apply to all persons, who shall be employed or permitted or
suffered to work at night, except those employed in agriculture, stock raising, fishing, maritime transport and "Article 158.
inland navigation, during a period of not less than seven (7) consecutive hours, including the interval from Women Night Workers. - Measures shall be taken to ensure that an alternative to night work is available to
midnight to five o'clock in the morning, to be determined by the Secretary of Labor and Employment, after women workers who would otherwise be called upon to perform such work:
consulting the workers' representatives/labor organizations and employers.
(a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided between
"'Night worker' means any employed person whose work requires performance of a substantial number of hours the time before and after childbirth;
of night work which exceeds a specified limit. This limit shall be fixed by the Secretary of Labor after consulting (b) For additional periods, in respect of winch a medical certificate IS produced stating that said
the workers' representatives/labor organizations and employers." additional periods are necessary for the health of the mother or child:
(i) During pregnancy;
(ii) During a specified time beyond the period, after childbirth is fixed pursuant to subparagraph
Who are considered night workers? (a) above, the length of which shall be determined by the DOLE after consulting the labor
Refers to employees or workers who work at night, for not less than 7 consecutive hours, including organizations and employers.
the interval from midnight until 5 am and then at least 7 consecutive hours. (iii) During the periods referred to in this article:
(1) A woman worker shall not be dismissed or given notice of dismissal, except for
+ 10 pm - 5 am; 12 am to 7 am
just or authorized causes provided for in this Code that are not connected with
pregnancy, childbirth and childcare responsibilities.
The exceptions: (2) A woman worker shall not lose the benefits regarding her status, seniority, and
(a) Fishing access to promotion which may attach to her regular night work position.
(b) Agriculture (3) Pregnant women and nursing mothers may be allowed to work .at night only if a
(c) Maritime transport competent physician, other than the company physician, shall certify their fitness
(d) Inland navigation to render night work, and specify, in the case of pregnant employees, the period of
the pregnancy that they can safely work.
(4) The measures referred to in this article may include transfer to day work where
e.g. Those who travel from Batangas to Mindoro, mga roro (roll on-roll off). That's normally a 24
this is possible, the provision of social security benefits or an extension of
hour operation. The Marine people who work in those shifts, since it’s Maritime transport, are not maternity leave.
included in the definition of night workers. (5) The provisions of this article shall not leave the effect of reducing the protection
and benefits connected with maternity leave under existing laws."
What are the obligations of the employer to night workers or to his employees who are
considered as night workers? "Article 159. Compensation.
The compensation for night workers in the form of working time, pay or similar benefits shall recognize the
exceptional nature of night work."
"Article 156. Mandatory Facilities.
Suitable first·aid facilities shall be made available for workers performing night work, including arrangements "Article 160. Social Services. -
where such workers, where necessary, can be taken immediately to a place for appropriate treatment. The Appropriate social services shall be provided for night workers and, where necessary, for workers performing
employers are likewise required to provide safe and healthful working conditions and adequate or reasonable night work."
facilities such as sleeping or resting quarters in the establishment and transportation from the work premises to
the nearest point of their residence subject to exceptions and guidelines to be provided by the DOLE." "Article 161. Night Work Schedules. -
Before introducing work schedules requiring the services of night workers, the employer shall consult the
"Article 157. Transfer. workers' representatives/labor organizations concerned on the details of such schedules and the forms of
Night workers who are certified as unfit for night work, due to health reasons, shall be transferred, whenever organization of night work that are best adapted to the establishment and its personnel, as well as on the
practicable, to a similar job for which they are fit to work. occupational health measures and social services which are required. In establishments employing night
workers, consultation shall take place regularly."
"If such transfer to a similar job is not practicable, these workers shall be granted the same benefits as other
workers who are unable to work, or to secure employment during such period.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

This is peculiar because there are certain mandatory obligations of the employer to night workers
The term "its equivalent" as used in paragraph c) hereof shall include Christmas bonus, mid-year
which are not the same to day workers. Example, there should be a held assessment of the night
bonus, profit-sharing payments and other cash bonuses amounting to not less than 1/12th of the
workers.
basic salary but shall not include cash and stock dividends, cost of living allowances and all
other allowances regularly enjoyed by the employee, as well as non-monetary benefits. Where
Why is that necessary? To find out if this particular worker is fit to render night work. Not all of us
an employer pays less than 1/12th of the employees basic salary, the employer shall pay the
are fit to render night work. In the long run, our health will suffer. There must be that assessment
difference.
first to find out of this particular employee if fit for night duty. If not fit to render night work / duty,
there must be some sort of flexible work arrangement.
13TH MONTH PAY (PD 851)
Another is so-called mandatory facilities to be provided by the employer to night workers. An
example is sleeping and resting quarters. This is not mandatory for day time workers. You do not In this law, in addition to those you are paying your employees, you are also mandated to give them
need to provide sleeping or resting quarters, but specifically under the law of night workers, if you an additional month (13th month) worth of salary. Take note that this is mandatory.
are an employer, you want your employees to do night time work, you should comply with the
mandatory facilities first. There are some exceptions (see table, Section 3 of PD 851). The general rule is if you are an
employer with a regular business and regular employees, you are mandated to pay them an
Providing transportation. There are certain qualifications for transport facilities to be provided to additional 1 month pay for each year. That is the 13th month pay. It is a form of benefit equivalent to
night workers. While it may be considered as mandatory, based on the IRR, there are certain the monthly basic compensation. It should not be less than 1/12th of the basic salary within a
conditions wherein the employer is not actually required. calendar year. It is equivalent to 1/3, and should not be less than that. It includes the basic salary
which is all remuneration and earnings for services rendered.
Section 3.
What is not included in the computation of the 13th month pay?
Employers covered The Decree shall apply to all employers except to:
● Unused vacation leave or sick leave credits
● Cost of living allowance (COLA)
(a) Distressed employers, such as (1) those which are currently incurring substantial losses
● Holiday pay
or (2) in the case of non-profit institutions and organizations, where their income,
● Overtime pay
whether from donations, contributions, grants and other earnings from any source, has
● Premium pay
consistently declined by more than forty (40%) percent of their normal income for the
● Night shift differential
last two (2) years, subject to the provision of Section 7 of this issuance;
(b) The Government and any of its political subdivisions, including government-owned and
You do not include this in computing the 13th month pay of your employees, UNLESS you are a very
controlled corporations, except those corporations operating essentially as private
generous person. (It is not prohibited to go beyond).
subsidiaries of the Government;
(c) Employers already paying their employees 13-month pay or more in a calendar year of
Which employers are covered?
its equivalent at the time of this issuance;
General rule: All employers
(d) Employers of household helpers and persons in the personal service of another in
Exception:
relation to such workers; and
● Employers employees on commission basis
(e) Employers of those who are paid on purely commission, boundary, or task basis, and
● Those in the boundary system basis
those who are paid a fixed amount for performing a specific work, irrespective of the
● Those on task basis
time consumed in the performance thereof, except where the workers are paid on
● Those already paying the equivalent
piece-rate basis in which case the employer shall be covered by this issuance insofar as
○ There are additional benefits given to the employee which is equivalent to a 13th
such workers are concerned.
month pay, like a Christmas bonus. If there is a Christmas bonus, you may be
exempted from 13th month pay PROVIDED that the Christmas bonus is equivalent
As used herein, workers paid on piece-rate basis shall refer to those who are paid a standard
to the 13th month pay. You may call it anything but it has to be 1/12th of the salary.
amount for every piece or unit of work produced that is more or less regularly replicated, without
regard to the time spent in producing the same.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

SEC. 2. Declaration of Policies. – It is hereby declared that: workers for local employment.
(a) The State strongly affirms labor as a primary social force and is committed to respect, (h) Working children, as used under this Act, refers to domestic workers who are fifteen (15)
promote, protect and realize the fundamental principles and rights at work including, years old and above but below eighteen (18) years old.
but not limited to, abolition of child labor, elimination of all forms of forced labor,
discrimination in employment and occupation, and trafficking in persons, especially RIGHTS AND PRIVILEGES
women and children;
(b) The State adheres to internationally accepted working conditions for workers in SEC. 5. Standard of Treatment. – The employer or any member of the household shall not
general, and establishes labor standards for domestic workers in particular, towards subject a domestic worker or “kasambahay” to any kind of abuse nor inflict any form of physical
decent employment and income, enhanced coverage of social protection, respect for violence or harassment or any act tending to degrade the dignity of a domestic worker.
human rights and strengthened social dialogue;
(c) The State recognizes the need to protect the rights of domestic workers against abuse, SEC. 6. Board, Lodging and Medical Attendance. – The employer shall provide for the basic
harassment, violence, economic exploitation and performance of work that is hazardous necessities of the domestic worker to include at least three (3) adequate meals a day and
to their physical and mental health; and humane sleeping arrangements that ensure safety.
(d) The State, in protecting domestic workers and recognizing their special needs to ensure
safe and healthful working conditions, promotes gender-sensitive measures in the The employer shall provide appropriate rest and assistance to the domestic worker in case of
formulation and implementation of policies and programs affecting the local domestic illnesses and injuries sustained during service without loss of benefits.
work.
At no instance shall the employer withdraw or hold in abeyance the provision of these basic
SEC. 4. Definition of Terms. – As used in this Act, the term: necessities as punishment or disciplinary action to the domestic worker.
(a) Debt bondage refers to the rendering of service by the domestic worker as security or
payment for a debt where the length and nature of service is not clearly defined or when SEC. 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be
the value of the service is not reasonably applied in the payment of the debt. guaranteed at all times and shall extend to all forms of communication and personal effects. This
(b) Deployment expenses refers to expenses that are directly used for the transfer of the guarantee equally recognizes that the domestic worker is obliged to render satisfactory service
domestic worker from place of origin to the place of work covering the cost of at all times.
transportation. Advances or loans by the domestic worker are not included in the
definition of deployment expenses. SEC. 8. Access to Outside Communication. – The employer shall grant the domestic worker
(c) Domestic work refers to work performed in or for a household or households. access to outside communication during free time: Provided, That in case of emergency, access
(d) Domestic worker or “Kasambahay” refers to any person engaged in domestic work to communication shall be granted even during work time. Should the domestic worker make use
within an employment relationship such as, but not limited to, the following: general of the employer’s telephone or other communication facilities, the costs shall be borne by the
househelp, nursemaid or “yaya”, cook, gardener, or laundry person, but shall exclude domestic worker, unless such charges are waived by the employer.
any person who performs domestic work only occasionally or sporadically and not on an
occupational basis. SEC. 9. Right to Education and Training. – The employer shall afford the domestic worker the
opportunity to finish basic education and may allow access to alternative learning systems and,
The term shall not include children who are under foster family arrangement, and are as far as practicable, higher education or technical and vocational training. The employer shall
provided access to education and given an allowance incidental to education, i.e. “baon”, adjust the work schedule of the domestic worker to allow such access to education or training
transportation, school projects and school activities. without hampering the services required by the employer.

(e) Employer refers to any person who engages and controls the services of a domestic SEC. 10. Prohibition Against Privileged Information. – All communication and information
worker and is party to the employment contract. pertaining to the employer or members of the household shall be treated as privileged and
(f) Household refers to the immediate members of the family or the occupants of the house confidential, and shall not be publicly disclosed by the domestic worker during and after
that are directly provided services by the domestic worker. employment. Such privileged information shall be inadmissible in evidence except when the suit
(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership, involves the employer or any member of the household in a crime against persons, property,
corporation or entity licensed to engage in the recruitment and placement of domestic personal liberty and security, and chastity.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

KASAMBAHAY LAW (RA 10361)

from granting this benefit by the Secretary of Labor and Employment after considering the
viability or financial condition of such establishment.
Kasambahay is any person engaged in domestic work within an employment relationship such as a
● general househelp,
The grant of benefit in excess of that provided herein shall not be made a subject of arbitration
● nursemaid or yaya,
or any court or administrative action.
● cook,
● gardener,
● laundry person, EXPANDED MATERNITY LEAVE ACT
● any person who regularly performs domestic work in one household on an occupational
basis. Section 3. Grant of Maternity Leave.—
All covered female workers in government and the private sector, including those in the informal
This is characterized by the following qualifications, pre-employment basis, regular basis, not economy, regardless of civil status or the legitimacy of her child, shall be granted one hundred
merely occasional basis. five (105) days maternity leave with full pay and an option to extend for an additional thirty (30)
days without pay: Provided, That in case the worker qualifies as a solo parent under Republic Act
After enumerating who are supposed to be included, the following are excluded. No. 8972, or the "Solo Parents’ Welfare Act", the worker shall be granted an additional fifteen
● Family drivers (15) days maternity leave with full pay.
● Others who work occasionally or sporadically (not regular)
● Children who are under foster family arrangements. Enjoyment of maternity leave cannot be deferred but should be availed of either before or after
○ Bar question: Teacher takes an elementary student from a poor family who was the actual period of delivery in a continuous and uninterrupted manner, not exceeding one
already an orphan. She would give the student allowance. One time, the relative of hundred five (105) days, as the case may be.
the poor student filed a complaint on her behalf, claiming that the student was a
kasambahay who was not getting the benefits mandated under the law. The Maternity leave shall be granted to female workers in every instance of pregnancy, miscarriage
student in this case is not a kasambahay but a foster child. or emergency termination of pregnancy, regardless of frequency: Provided, That for cases of
miscarriage or emergency termination of pregnancy, sixty (60) days maternity leave with full pay
What are the benefits and privileges that a Kasambahay is entitled to? shall be granted.
● Section 5-10
● 13th month pay Section 4. Maternity Leave for Female Workers in the Public Sector.—
● Service incentive leave Any pregnant female worker in the government service, regardless of employment status, in
○ A regular employee who has worked for at least one year is entitled to a 5 day National Government Agencies (NGAs), Local Government Units (LGUs), Government-Owned or
service incentive leave. -Controlled Corporations (GOCCs), or State Universities and Colleges (SUCs), shall be granted a
■ Note that under the Labor Code, there is no sick leave, vacation leave. maternity leave of one hundred five (105) days with full pay regardless if the delivery was normal
■ Those are from Collective Bargaining Agreements, not based on the or caesarian: Provided, That, in case the employee qualifies as a solo parent under Republic Act
Labor Code. If not CBA, it’s based on the employment contract between No. 8972, or the "Solo Parents’ Welfare Act", the employee shall be paid an additional maternity
the employer and employee. It is based on contract, not law. benefit of fifteen (15) days. An additional maternity leave of thirty (30) days, without pay, can be
availed of, at the option of the female worker: Provided, further, That, the head of the agency
LABOR CODE shall be given due notice, in writing, at least forty-five (45) days before the end of her maternity
leave: Provided, finally, That no prior notice shall be necessary in the event of a medical
Art. 95. Right to service incentive leave. emergency but subsequent notice shall be given to the head of the agency.
Every employee who has rendered at least one year of service shall be entitled to a yearly
service incentive leave of five days with pay. Maternity leave of sixty (60) days, with full pay, shall be granted for miscarriage or emergency
termination of pregnancy.
This provision shall not apply to those who are already enjoying the benefit herein provided,
those enjoying vacation leave with pay of at least five days and those employed in
establishments regularly employing less than ten employees or in establishments exempted

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

PATERNITY LEAVE ACT

period of twelve (12) months: Provided, further, That the OFW, his or her spouse, family
SEC. 2. Notwithstanding any law, rules and regulations to the contrary, every married male member, or guardian of the child or children of an OFW falls under the requirements of
employee in the private and public sectors shall be entitled to a paternity leave of seven (7) days this section;
with full pay for the first four (4) deliveries of the legitimate spouse with whom he is cohabiting.
The male employee applying for paternity leave shall notify his employer of the pregnancy of his (c) Unmarried mother or father who keeps and rears the child or children;
legitimate spouse and the expected date of such delivery.
(d) Any legal guardian, adoptive or foster parent who solely provides parental care and
For purposes of this Act, delivery shall include childbirth or any miscarriage. support to a child or children;

SEC. 3. Definition of Term. – For purposes of this Act, Paternity Leave refers to the benefits (e) Any relative within fourth (4th) civil degree of consanguinity or affinity of the parent or
granted to a married male employee allowing him not to report for work for seven (7) days but legal guardian who assumes parental care and support of the child or children as a
continues to earn the compensation therefor, on the condition that his spouse has delivered a result of the death, abandonment, disappearance or absence of the parents or solo
child or suffered a miscarriage for purposes of enabling him to effectively lend support to his parent for at least six (6) months: Provided, That in cases of solo grandparents who are
wife in her period of recovery and/or in the nursing of the newly-born child. senior citizens but who have the sole parental care and support over their grandchildren
who are unmarried, or unemployed and twenty-two (22) years old or below, or those
twenty-two (22) years old or over but who are unable to fully take care or protect
EXPANDED SOLO PARENTS ACT RA 18861
themselves from abuse, neglect, cruelty, exploitation, or discrimination because of a
Section 4. Categories of Solo Parents. – A solo parent refers to any individual who falls under physical or mental disability or condition, they shall be entitled to the benefits of this
any of the following categories: Act in addition to the benefits granted to them by Republic Act No. 9257, otherwise
known as the ‘Expanded Senior Citizens Act of 2003’; or
(a) A parent who provides sole parental care and support of the child or children due to –
(i) Birth as a consequence of rape, even without final conviction: Provided, That (f) A pregnant woman who provides sole parental care and support to the unborn child or
the mother has the sole parental care and support of the child or children: children.”
Provided, further, That the solo parent under this category may still be
considered a solo parent under any of the categories in this section;
ANTI-VAWC RA 9262
(ii) Death of the spouse;
(iii) Detention of the spouse for at least three (3) months or service of sentence for SECTION 43. Entitled to Leave. – Victims under this Act shall be entitled to take a paid leave of
a criminal conviction; absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil
(iv) Physical or mental incapacity of the spouse as certified by a public or private Service Rules and Regulations, extendible when the necessity arises as specified in the
medical practitioner; protection order.
(v) Legal separation or de facto separation for at least six (6) months, and the solo
parent is entrusted with the sole parental care and support of the child or Any employer who shall prejudice the right of the person under this section shall be penalized in
children; accordance with the provisions of the Labor Code and Civil Service Rules and Regulations.
(vi) Declaration of nullity or annulment of marriage, as decreed by a court Likewise, an employer who shall prejudice any person for assisting a co-employee who is a victim
recognized by law, or due to divorce, subject to existing laws, and the solo under this Act shall likewise be liable for discrimination.
parent is entrusted with the sole parental care and support of the child or
children; or
MAGNA CARTA FOR WOMEN
(vii) Abandonment by the spouse for at least six (6) months;
SECTION 18. Special Leave Benefits for Women. — A woman employee having rendered
(b) Spouse or any family member of an Overseas Filipino Worker (OFW), or the guardian of continuous aggregate employment service of at least six (6) months for the last twelve (12)
the child or children of an OFW: Provided, That the said OFW belongs to the months shall be entitled to a special leave benefit of two (2) months with full pay based on her
low/semi-skilled worker category and is away from the Philippines for an uninterrupted gross monthly compensation following surgery caused by gynecological disorders.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

TYPES OF LEAVES 5. Anti-VAWC RA 9262

a. Under RA9262, you have a 10 day leave available to battered women (victims of
1. SIL (service incentive leave) Article 95 violence).
a. Composed of at least 5 days for an employee who has rendered at least 1 year.
i. Overtime pay rate, holiday pay, leaves, these are merely the minimum 6. Special Leave Benefit for Women under 9710 or Magna Carta of Women
provided by the employer to employees. You may give more, not less. You a. 2 months will full pay for female employees who underwent surgery caused by
can pay more, but not less than what is expressly stated in the Labor gynecological disorders
Code. b. Must have been with the company 12 months prior to surgery
b. What if you didn't use your SIL that you are entitled to? Take note that this is
convertible to cash. Depends on you and your employer.

2. Expanded maternity leave Act 11210

a. 105 days for child birth normal or cesarean with full pay May 11, 2023
b. 60 days for miscarriage or emergency termination of pregnancy
c. 15 additional days for solo parents BOOK IV OF LC: WORKMEN’S COMPENSATION
i. Available to all covered female workers in government or private sectors
regardless of civil status (married or not), regardless of legitimacy of the What are the differences between the old compensation act and the new one (Employees
child, regardless of frequency Compensation Law or ECL)?

*** with the option to extend for 30 days (but extension is without pay). OLD COMPENSATION ACT NEW COMPENSATION ACT

3. Paternity Leave Act of 1996, based on RA8187 Presumption of Presumes that the injury, death, No such presumption that it is
a. 7 day leave with pay for married fathers compensability or illness that is work-related is compensable. The State Insurance
i. to give support to the wife and newborn child compensable. Fund will be depleted if we apply that
b. It is only up to 4 children (while in Maternity Leave Act it is unlimited frequency) presumption of compensability.
c. Must be availed of within 60 days from delivery or miscarriage of the wife
Proof of causation No need for proof because of the There must be proof as to what
4. Solo parents Act (RA 8972; amended by 11861 or the Expanded Solo Parents Act) presumption of compensability caused the injury, illness, or death of
- There must be children under his or her care because this is intended for that the employee.
parent, whether it is the mother or father, the guardian, or whoever, to take care of
the children or child under his/her care. Presumption of No such presumption. The presumption that the work environment
- It is not really because your spouse left you that you become a solo aggravation contributed to the aggravation of the illness is only present in the old law.
parent. There should be a child or children under your care without your
spouse. Solo father / solo mother is not the same as single parent legally
Liability No need to controvert. Since there is
speaking.
a State Insurance Fund, the employee
- There is a 7 day solo parent leave every year under the law. Available
will go directly to GSIS or SSS, not to
every year, 7 days, for an employee who has rendered work for at least 1
the employer. The employer just
year. Under the expanded solo parent law, the one year has also been
continues to pay the premium
shortened. 6 months you’re already qualified.
contribution.
- Word “spouse” includes common law relationships. No requirement that you
should be legally married, and that one spouse leaves the other. It is a common
Nature Litigious Administrative
law husband and wife relationship when there is no impediment to marry each
other.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

State Insurance Fund Theory of Increased Risk

Refers to the fund being maintained by the State from the contributions of the employers for 1. The illness is compensable when the risk of contracting the disease is increased by
compensating the employees if they suffer, for example, death, illness, or injury that is working conditions which makes the disease compensable under the law.
work-related. It is a form of a fund being collected, maintained by the government. 2. What is the relevance? Ordinarily, how do you know if a certain illness of an employee is
compensable under the ECL?
When we talk of SIF, we talk of two systems: a. The first answer is → if the illness is included in the list of occupational diseases
1. SSS (private sector) (ECC Annex A).
2. GSIS (public sector) i. Cancer, cataracts, hearing loss, decompression, infections, radiation
disease, poison, pneumoconiosis (mineral dust), diseases caused by
It is the employers that contribute. Those contributions are for the benefits of the employees abnormal temperature and humidity like heat stroke, hepatitis,
(sickness, injuries, etc.) There will be a form of compensation to be given by the system. It is as if cardio-vascular diseases, malaria, pneumonia, hernia, asthma,
you are insured against any illness, death, injury, because there is a compensation given. If he dies, musculoskeletal disorders, encephalitis, ulcer, tuberculosis,
then to the heirs. Not all illnesses since it has to be work-related. hypertension, asbestos-related diseases, hypersensitivity pneumonitis,
byssinosis (cotton dust)
How do you claim compensation? b. Consult the list first. General rule is if it’s not on the list, it is not compensable.
● File the claim with the system (e.g. Regional office of SSS). i. Can you still claim it if not on the list? This is where the theory of
○ Paid by the system → No problem. increased risk comes in. Your argument to claim will now be even if it’s
○ What if they deny your claim (“di naman yan work related eh”) not on the list, the illness was aggravated or the risk was increased
■ You appeal the decision of SSS (or GSIS) to the Employers Compensation because of the provided working conditions.
Commission (ECC). They have appellate jurisdiction over the decision of ii. If not on the list, the burden is on the employee claiming that by applying
GSIS and SSS in these particular claims. May lawyer din yung GSIS and the theory of increased risk, his working condition increased the risk of
SSS to counterclaim. getting the disease.

Liability of Third Parties

As an organization, the ECC is composed of the Commission Proper and the Secretariat.
While at work, an employee was required by the employer to go up the room to fix the leak on the
The Commission Proper has eight (8) members, six (6) are ex-officio, and two (2) are appointed by the roof. In the process, the employee fell for one reason or another. He wants to claim from SSS since
President for a fixed term of office. These are: he was doing work when it happened.
1. The Secretary of Labor and Employment as Chairperson;
2. The SSS President and Chief Executive Officer; At the same time, he is attributing quasi-delict na may negligence on part ng employer (the roof
3. The GSIS President and General Manager; was dilapidated and dangerous to walk on already). This is where the liability of third parties comes
4. The Chairman of the Philippine Health Insurance Corporation; in. It can be the employer or another person.
5. The Chairman of the Civil Service Commission;
6. The Executive Director of the ECC Secretariat;
7. The Employees’ Representative; and (a) E.g. Person A got stabbed by his co-worker. Person A sustained wounds and injuries.
8. The Employers’ Representative. Liability of third parties comes in, not necessarily the system.
(i) Article 180 of the LC: In cases of liability of third parties, assuming the employee
Six (6) divisions of the ECC Secretariat: is able to collect or get compensation from that third party because liability is
1. Appeals Division; sufficiently established, the employee may still claim from the system since it’s
2. Policy, Programs and Systems Management Division; work-related.
3. Work Contingency Prevention and Rehabilitation Division; (ii) In that situation, the GSIS or SSS has the right to be subrogated for the right of
4. Information and Public Assistance Division.
the employee to take compensation from the third party. You may claim from the
5. Finance Division, and
6. Administrative Division system first, then the right to claim from the third party will be transferred by
virtue of subrogation to the system.

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 San Beda College Alabang, School of Law
Labor Standards (Lectures) - Atty. Joey Usita, 2022-2023
Antonina Diola Concepcion, 2D

Prohibition of double recovery 24 HR Duty Doctrine

You got paid by the system. You cannot file a claim from the third person. This is double recovery It refers to round the clock duty
and not allowed by law. (a) Normally it applies to policemen, soldiers, firefighters, because these employees or
workers work for 24 hours. If anything happens to them, that is presumed to be
Once you decide on what cause of action to take, there is a limit. “It’s low if GSIS or SSS. If it's a compensable. It does not apply to all occupations.
third party, the pay is bigger.” That is allowed. You just have to make up your mind which you will go - But just because it’s a 24 hour job, does not automatically mean that it is compensable. If
after first. Just note that double compensation is not allowed. for example, the policeman went to the bar during his shift, this is not work-related. It is
not compensable.
RULES ON COMPENSABILITY OF INJURY
What are the defenses? Where can there be non-payment of compensation despite the fact the
Direct Premises Rule injury was sustained in the workplace?
When you sustain injuries while working on the premises ng company, it is compensable by virtue
of this rule. Art. 172. Limitation of liability. The State Insurance Fund shall be liable for compensation to the employee or
his dependents, except when the disability or death was occasioned by the employee’s intoxication, willful
Exceptions: intention to injure or kill himself or another, notorious negligence, or otherwise provided under this Title.
● If you’re not in the premises to actually work (e.g. just visiting).
Art. 1144. The following actions must be brought within ten years from the time the right of action accrues:
Going and Coming Rule 1. Upon a written contract;
Let us say you have an injury that happens not necessarily within the workplace. Is it compensable? 2. Upon an obligation created by law;
3. Upon a judgment;
1. With that, apply the Going and Coming rule. (Going to work place, coming from workplace)
- Take note of the previous decision to the effect that if you are away from the gate
already and you got hit by a car, that is no longer compensable since you’re Legal grounds to deny the claim (Art 172)
already outside. 1. Intoxication → If this is the proximate cause, it will not be compensable.
- But also take note of ECC Board Reso 394-A 2. Willful intention to kill or injure/harm himself or another person (suicide).
- Continuing route, where you really go through that area without 3. Notorious negligence → not willful, nor simple negligence. It is usually defined as total
diversion. It’s really from the workplace to home. disregard for one’s safety (e.g. selfie near the bridge)
- If it is established that it is the usual route, it may be 4. Those otherwise provided by the Labor Code. What are those?
compensable. a. Prescription. GR is if you have any claim for compensation, file it within three
- If for example, person A goes home at 10 PM, goes to a bar, then years before the system. Death, illness, injury.
gets shot. During that time, it is no longer continuing, therefore i. When do you reckon the three year period?
it’s no longer compensable. 1. For death, it’s 3 years from the date of the death.
- Place and time are also taken into consideration. If your travel on 2. For injury, from the date of injury because you will know right
the way home is just for one hour, and then it’s been after five away, unless it’s an internal injury
hours already, it is questionable. 3. For illness or ailment, this is where you make the distinction. For
Special Errand illness, reckon not from the date the illness occurs, but from
The general rule is that injury is in premises, Direct Premise rule is applicable. when the earning capacity is affected by the illness.
If injury is outside, it’s Going and Coming rule / Off-premises ii. It can still be filed within 10 years in one case. Why?
1. Art 1144. since it is an obligation created by law (Employees
What if it’s a special errand? Compensation Law) then it prescribes in 10 years. Employees'
Your office is in Baclaran, your boss asks you to fetch something from Bulacan. It’s far, but it’s Compensation Commission v. Edmund Sanico (G.R. No. 134028)
work-related. It’s compensable.

It has to be a special errand which is official and work-related.

Ora et labora.

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