Chapter 10:

Labor Law

Ramos, Honey Grace Molina

Razalan, Richelle Anne Sapad
Reyes, Jermaine Clyde
Ronquillo, Joshua Brudo
Ropa, Rubella Andrie Barroque
Sadaba, Jamaica Encarnacion

(December 3, 2024)

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 Table of Contents
[Link] of Employment in The Philippines 3
Different categories of Employment 3
Different categories 4
[Link], Privileges, and Policies Affecting Employees 4
Benefits, Privileges, and Policies Affecting Employees 5
Company policies affecting employee rights and responsibilities. 6
[Link] Practices in Handling Human Resources in Tourism Establishments 7
Strategies for effective recruitment and training. 7
Employee engagement and retention initiatives. 8
Performance appraisal systems and feedback mechanisms. 9
Compliance with labor laws and regulations. 10
[Link] Sexual Harassment in the Workplace 11
Procedures in Handling Sexual Harassment Complaints 11
Steps for reporting incidents (confidentiality and protection)12
Investigation processes and timelines 12
Disciplinary actions for perpetrators. 12

[Link] of Workers Employed in Tourism Establishments 13

Overview of fundamental worker rights13
Specific rights related to wages, hours, and job security 14
Rights under the Law Against Discrimination 17
[Link] for Termination of Employment 18
Just Cause: Legitimate reasons for immediate termination 20
Authorized Cause: Reasons requiring notice and severance 20
[Link] Hours of Work and Compensation 21
Definition of regular working hours and related policies. 21
Regulations regarding Overtime Work and Night Shift Differential Pay. 22

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Learning Objectives:
 At the end of this chapter the student will explain the difference of employment in
the Philippines
 To know the Benefits, Privileges, and Policies Affecting Employees
 To differentiate the working hours in the Philippines.
 To aware on how to Handling Sexual Harassment in the Workplace.
 To have knowledge about Rights of Workers Employed in Tourism
Establishments

I. CLASSIFICATION OF EMPLOYMENT IN THE PHILIPPINES

There are five different types of employment in the Philippines and they are
determined by the nature and/or existence of activities that an employee is required
to perform. The employer establishes the terms and conditions of the employment
contract, which should be structured according to the legal provisions set by
Philippine labor laws and regulations.
Regular or Permanent Employment
Regular or Permanent Employment is when an employee performs activities that are
usually necessary or desirable in the usual business or trade of the employer. They
enjoy the benefit of security of tenure provided by the Philippine Constitution and
cannot be terminated for causes other than those provided by law and only after due
process is given to them.
However, some employers can require their new employees to undergo probationary
employment before they can be qualified for regular employment. Although
probationary employment is not a formal type of employment in the Philippines, it is
widely practiced to help employers observe the skills, competence, and performance
of new employees and determine if they are able to meet the reasonable standards
to become permanent employees.
Under Article 281 of the Labor Code of the Philippines, the maximum length of
probationary employment shall be six (6) months, and is counted from the date an
employee started working. When the employment is not terminated after the six-
month probationary period, it shall then be considered regular employment. It is
important to note that the employer must notify the employee of the probationary
period and the standards they must satisfy on or before the end of the probationary
employment. If the employee is not properly notified of the arrangement, then they
are prescribed by law to be classified as a regular employee from the time they
started working for the company.
Term or Fixed Employment
Term or Fixed-Term Employment is when the employee renders service for a definite
period of time and the employment contract must be terminated after such period
expires. This type of employment is determined not by the activities that the
employee is expected to perform but by the commencement and termination of the
employment relationship. Fixed-term employment is highly regulated and is subject
to the following criteria:

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be voluntarily and knowingly agreed upon by the parties without any force, duress or
improper pressure being brought to bear upon the employee and absent any vices of
consent; or it satisfactorily appears that the employer and the employee dealt with
each other on more or less equal terms with no dominance exercised by the former
over the latter.
Project Employment
Project Employment is defined when an employee is hired for a specific project or
undertaking and the employment duration is specified by the scope of work and/or
length of the project. A project employee may acquire the status of a regular
employee when they are continuously rehired after the completion of the project or
when the tasks they perform are vital, necessary, and indispensable to the usual
business or trade of the employer.

Seasonal Employment
Seasonal Employment is when the work to be performed is only for a certain time or
season of the year and the employment is only for that duration. This type is
common practice to Retail, Food and Beverage, Hospitality and other related
industries as augmentation to their workforce to cover for the demand during peak
seasons.
A common practice for some employers is to hire “regular seasonal employees” who
are called to work during peak seasons (e.g. Christmas season) and are temporarily
suspended during off-seasons. These employees are not separated from service but
are only considered on Leave of Absence (LOA) without pay until re-employed.
Casual Employment
There is Casual Employment when an employee performs work that is not usually
necessary or primarily related to the employer’s business or trade. The definite
period of employment should be made known to the employee at the time they
started rendering service.
If the employee has rendered service for at least one (1) year in the same company,
whether the casual employment is continuous or not, they shall be considered a
regular employee with respect to the activity they are employed and will continue
rendering service while such activity exists.

II. OVERVIEW OF MANDATORY EMPLOYEE BENEFITS IN THE PHILIPPINES

Statutory benefits, also known as mandatory benefits, are entitlements that

employers are obligated by law to provide to their employees. Common examples
include benefits like Social Security (SSS), Health Insurance, Home Development
Mutual Fund( HDMF).

1. Social Security System - Social insurance covers private sectors employees, self
employed workers, as well as household workers.

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The benefits include:
 Maternity pay
 Sickness pay
 Pensions
 Disability benefits
 Salary loans
 Life insurance
 Funeral grants
2. Health Insurance - Many Global Companies May Out Of Offering Private Health
Insurance To Filipino Employees As a Result, But It's Still Common For Many
Employers To Offer Secondary Health Insurance To Their Employees To Help Them
Access More Specialized Care.
3. Home Development Mutual Fund - Also known as PAG-IBIG Fund, provides
housing loans. It also offer financial assistance to Filipinos to enable them to afford
decent housing.

ADDITIONAL PRIVILEGES ADDITIONAL PAID LEAVE AND BONUSES

1. 13th Month Pay
Employees are entitled to 13th month pay. Regular employees who have worked the
full year often receive at least 1month their salary for their 13th month pay. Those
who haven't worked a full year will receive a prorated amount.
[Link] Paid Leave
Paid vacation in addition to national holidays and annual leave can be an attractive
in incentive. Many companies operating in the Philippines offer up to eighteen days
of paid vacation to their employees. Some extra paid time off will help international
employers retain high-performing employees.

3. Holiday Pay

The Philippines recognises several regular holidays where workers are not required
to report for work but should still receive 100% of their daily wage. If they do work,
then they should receive 200% of their regular wage.

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 COMPANY POLICIES AFFECTING RIGHTS AND RESPONSIBILITIES

Main Responsibilities of Employees

Employees have responsibilities towards their employers, even if they work part
time or don’t have a written contract with their employers.
These are the main responsibilities of employees:
 to personally do the work they were hired to do
 to do their work carefully and seriously (In some cases, they could be fired or
disciplined if they’re often late for work, or if they’re absent too often or for
no good reason.)
 to avoid putting themselves or others in danger
 to follow their employer’s instructions (There are some exceptions. For
example, if an employer asks an employee to do something dangerous or
illegal, the employee doesn’t have to follow these instructions.

When Employees Don’t Respect Their Responsibilities

If employees don’t respect their responsibilities, the employer is allowed to take
certain actions:
 discipline employees, such as giving a written warning, or suspending them
 take other action against employees, such as giving a letter evaluating their
performance, or demoting them (that is, giving them a lower job)
 fire employees if they do something very serious, such as stealing from the
office
 take employees to court to make them pay an amount of money (for example,
if the employee quits without telling the employer in advance, or
if the employee quits before the date in the employment contract)
 take employees to court to stop them from doing things that are harmful to the
business

EMPLOYERS’ RESPONSIBILITIES TOWARDS EMPLOYEES

These are the main ones:
 Employers must give their employees a place to work and make
sure they have access to it. They must give them the tools, equipment
and other things they need to do their work.
 Employers must pay their employees the salary and benefits they agreed
to, including vacation, paid holidays and other types of holidays.
 Employers must make sure that working conditions protect their
employees’ physical and psychological health and safety.
 In some cases, employers must give their employees written
notice that their contracts are ending or that they are being laid off. Note
that employers can pay employees a sum of money instead of giving
the notice.

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  Employers must treat their employees with respect. They must
make sure their employees are not harassed or discriminated against.
 Employers must take steps when they know, or reasonably should know, that
employees are exposed to domestic, family or sexual violence in the
workplace. They must do this whether the employee is working in the office or
working from home.

NOTE: If an employee signs a written contract with the employer, it might place more
responsibilities on the employer than the ones required by law.
For example, an employment contract might say that the employer has to pay
employees who have to use their own cars to do their jobs. Or
the contract might also say that the employer has to pay back their employees for
travel or entertainment expenses if they show their receipts.

III. Best Practices in Handling Human Resources in Tourism Establishments

We know that the quality of tourism services depends on the work of
employees and also on human resource management since they are also the ones
who ensure that the work is carried out in the best possible way or conditions for
maximum efficiency. Human resource management plays an important role in the
tourism industry particularly in terms of competitiveness, they are responsible to
obtain, select, motivate, educate and develop, reward and retain its employees.
Apart from those, skills, knowledge and abilities are the structure that an employee
should have for them to be suitable to the job they are filling in.
Based on interviews with almost 60 managers he following are the best labor
practices that are now implemented in various tourism establishments:
a. A comprehensive background check is usually undertaken by an employer
before admitting newly hired employees.
b. A two-week orientation training is given to the newly hired employees before
they start the actual duty. An immersion of the operations will be observed plus
a thorough study of the company’s background by the new employee will be
undertaken.
c. A performance evaluation on a monthly or quarterly basis is being undertaken
among employees. A written performance evaluation is furnished to the
employee concerned.
d. Newly hired employees are oriented on and being furnished copies of the
company’s Code of Ethics before they start working. All other day-to-day
activities of the company policies are published in memos, copy furnished the
employees and posted in strategic bulletin boards.
e. Companies invest highly on training and development highly on training and
development of employees and managers.

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 f. For tourist sites which are being administered by the government, strict
adherence to civil service laws, rules and regulations is imperative

STRATEGIES FOR EFFECTIVE RECRUITMENT AND TRAINING.

1. Employee Referrals
This pertains to the hiring and recruitment process where they ask internal
employees to recommend people they know within the organization or network to
apply for roles at an organization. Employee referral programs offered by many
organizations where they provide incentives, such as bonuses or prizes for those
individuals who refer a quality candidate to the company.

2. Job Boards/Job Postings

Is an official website used by an employer to publish and promote job vacancies. Job
seekers utilize them to find opportunities according to their preferred field and
location of job. This includes the description of the job, responsibilities and
qualification requirements depending on what they are applying/looking for.

3. Online Advertising
It is an online marketing strategy involving the utilization of the internet as their
medium in obtaining website traffic and target that helps them to deliver marketing
messages to the right customers.
4. Social Media
This is used through the means of posting frequently that give help to an
organization to be more visible to passive candidates. It also lets the organization
create easy channels for them to be able to interact with those target job seekers.

5. Recruitment Agencies
This method handles the entire recruitment process from start to finish, this is used
from finding qualified candidates, to conducting interviews up to the communication
process about job duties and expectations. Recruitment agencies utilize their
resources in the industry and expertise in staffing to find applicants who have the
most potential to succeed.
6. Recruitment Events
Is a recruitment marketing strategy that aims at building and fosters relationships
with those job seeker candidates in a more personal way. Recruitment events can
vary, from job fairs to hackathons and school/campus events.
7. Follow the latest hiring trends
It is an observation about what is the latest change or developments across your
industry to help you reach out to your potential candidates.

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 EMPLOYEE ENGAGEMENT AND RETENTION INITIATIVES
Employee Engagement
This refers to the emotional connection, commitment, and the involvement an
employee has towards their work and also to the organization. Employees who’s
engage are motivated to go above and beyond the level of their productivity resulting
in better outcomes and is aligned with the company’s goals and values. Therefore,
fostering this kind of engagement could make employees more likely to stay with the
company, reduced turnover rates and associated recruitment costs. Aside from it,
this will allow an employee to foster a positive work environment that leads them to
have a higher morale, being collaborative and being innovative that enhance their
job satisfaction and overall well-being.

Employee Retention
This refers to the ability of an organization to retain its employees in such a way that
they could prevent employee turnover whether it is voluntary or involuntary. It helps
the organization to measure the extent to which employees choose to stay with the
company rather than seeking for an employment opportunity somewhere else.
Employee retention is often influenced by various factors, this includes job
satisfaction, growth opportunities, work-life balance, compensation and benefits.
Through employee retention, organizations can save money, foster better
relationships with one another that lead to better team member performance and
make the company a more enjoyable place to work.

PERFORMANCE APPRAISAL SYSTEMS AND FEEDBACK MECHANISMS

Performance Appraisal Systems
A performance appraisal system is a structured, managed process where lots of
businesses from different industries use to assess and evaluate the performance
that their employee performed. This includes the goals of providing a clear
performance evaluation, constructive feedback, development and career planning
and documentation to ensure the alignment of the strengths and weaknesses of
employees to improve while supporting decisions related to compensation,
promotions, training and development. Therefore, performance appraisal helps to
ensure that the employees are trained, motivated, and rewarded for delivering
exceptional service and exceeding customer expectations especially in hotels or
other tourism establishments where employees must give their full service towards
their customers. This in turn leads to increased customer satisfaction and loyalty,
which are crucial for the long-term success and profitability of the businesses.

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Feedback Mechanism
Feedback mechanisms are structured processes in which employees receive
information about their performance, behaviors, and contributions. It also facilitates
continuous improvement, and fosters a culture of transparency and accountability
especially in the tourism industry that feedback is very important from the customer
perspective up to the level of performance that an employee performs. This would
enable individuals as well as teams to align their efforts with organizational goals,
enhancement of their overall productivity and job satisfaction.
Effective feedback not only fosters personal and professional growth but also aligns
individual performance with organizational goals. Here are the four major
components of feedback mechanisms:
1. Feedback source: This can be a supervisor, peer, or subordinate who provides
input. The effectiveness of feedback often depends on the credibility and
perspective of the source.
2. Feedback content: This refers to the information or observations shared. It
should be specific, relevant, and actionable to be useful for improvement.
3. Feedback recipient: The individual who receives the feedback. Their openness
to receiving and applying feedback is crucial for it to be effective.
4. Feedback process: This encompasses how feedback is delivered and
discussed. It includes the timing, setting, and method of communication, which
can influence how well the feedback is received and acted upon.
Compliance With Labor Laws and Regulations
Labor law compliance refers to the process of adhering to the legal
requirements and regulations related to employment and labor practices to maintain
a fair and legally compliant workplace while maintaining to protect the rights and
interests of every employee. Labor law compliance encompasses various aspects
including minimum wage, overtime pay, working hours, workplace safety, anti-
discrimination measures and employee benefits.
Labor law compliance is essential for several reasons:
● Legal Compliance and Avoidance of Penalties: One of the primary reasons
for staying labor law compliant is to adhere to the legal framework established
by the government. Labor laws vary across jurisdictions but generally cover
areas such as minimum wage, working hours, overtime, workplace safety, anti-
discrimination, and leave entitlements. Failing to comply with these laws can
lead to penalties, fines, and legal actions that can be detrimental to a business.
By staying compliant, organizations can avoid costly legal battles and maintain
a positive relationship with regulatory authorities.
● Protection of Workers' Rights: Labor laws exist to protect the rights and well-
being of employees. Compliance with these laws ensures that workers are
treated fairly and are provided with essential rights and benefits. This includes
ensuring proper wages, safe working conditions, reasonable working hours,
overtime compensation, and protection against discrimination or harassment.

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 By prioritizing labor law compliance, businesses demonstrate their commitment
to creating a supportive and respectful work environment, which in turn boosts
employee morale, satisfaction, and productivity.
● Enhanced Reputation and Brand Image: In today's socially conscious world,
consumers, employees, and stakeholders are increasingly concerned about
ethical business practices. Companies that prioritize labor law compliance are
viewed as responsible and trustworthy entities. Maintaining a positive
reputation can attract top talent, foster customer loyalty, and open doors to new
business opportunities. Conversely, non-compliance with labor laws can lead to
negative publicity, damage a company's image, and result in public backlash
that may take years to recover from.
● Employee Retention and Attraction: Compliance with labor laws helps create
a favorable work environment that promotes employee retention and attracts
new talent. When employees feel valued and protected, they are more likely to
remain committed to their jobs and perform at their best. Additionally,
businesses that uphold labor laws are seen as desirable employers, attracting
skilled candidates who seek job security and fair treatment. This gives
compliant companies a competitive edge in the talent market, making it easier
to recruit and retain top performers.
● Mitigation of Legal Risks: Non-compliance with labor laws exposes
businesses to significant legal risks. Violations can result in employee lawsuits,
investigations, and financial liabilities. These legal battles can be time-
consuming, costly, and damaging to a company's financial health. Staying labor
law compliant minimizes the risk of legal disputes, ensuring that businesses
can focus on their core operations and long-term growth without the burden of
litigation.

IV. HANDLING SEXUAL HARASSMENT IN THE WORKPLACE

The rule number 4, section 18 of RA11313 or Gender – Based Sexual
Harassment in the Workplace
It is a crime in a workplace that involves an act or series of acts about any
unwelcome sexual advances, requests or demand for sexual factors or any act of
sexual nature may it be done verbally, physically or with the use of technology such
as text messaging, email and all forms of information and communication systems,
that all resulted or will be resulting to damaging effect on the conditions of an
employee, education, job performance or even opportunities.
It also involves a conduct of sexual nature and other conduct – based on sex
affecting the dignity of an individual which is unwelcome, unreasonable, and
offensive to the recipient whether done verbally, physically or with the use of
technology such as text messaging, email and all forms of information and
communication systems.

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 This crime also applies if a conduct that is unwelcome and noticeable that
may result to intimidating, hostile or humiliating environment for the recipient. This
crime may also be committed between peers and by a subordinate to a superior
officer.

The rule number 4, section 19 of RA11313 or Gender – Based Sexual

Harassment in the Workplace.

This section indicates the Duties of Employers or other persons of authority,

influence or moral ascendancy in a workplace shall have the duty to prevent,
dissuade or punish the performance of acts of GBSH in the workplace.

Procedures in Handling Sexual Harassment Complaints

All public and private institution must designate an officer-in-charge to receive
complaints regarding violation of this act and shall ensure that the victims are
provided with a gender-sensitive environment that is both respectful to the victims’
needs and conducive to truth-telling.

Steps for reporting incidents (confidentiality and protection).

 Addressing complaints of sexual harassment can be done by reporting the
incident to the appropriate authorities, which may include HR departments,
school administrators, or local government units, depending on the setting.
 Organizations should establish clear and accessible reporting mechanisms that
uphold confidentiality, allowing victims to report incidents without fear of
exposure or retribution.
 The identities of complainants and the details of their complaints must be kept
confidential. This aims to protect victims from further harm or stigma and
encourages more individuals to come forward.

Investigation Processes and Timeliness

 Documentation is a necessity. Collect evidence of the harassment, such as
messages, photographs, or witness statements. This documentation can support
the complaint.
 Investigation should by conducted by the designated authority to a prompt and
thorough investigation into the complaint, ensuring confidentiality and protection
for the complainant.
 Protection against retaliation is provided by the law for protection against
retaliation for those who report harassment or participate in investigations.

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 Institutions are encouraged to provide support services, such as counseling, to
help victims navigate the reporting process and cope with the emotional impact
of harassment.

Disciplinary Actions for Perpetrators

 Resolution and sanctions comes after the investigation for appropriate actions to
be taken based on the findings. This may include disciplinary actions against the
perpetrator, which can range from reprimands to termination, depending on the
severity of the harassment.
 Support services will be provided to the victims afterwards, such as counceling
or legal assistance.

Education and Training in the institutions are encouraged to be conducted regularly

such as training and awareness programs about sexual harassment and the
provisions of the Safe Spaces Act to create a safer environment.

V. RIGHTS UNDER THE LAW AGAINST DISCRIMINATION AND PROTECTIONS

AGAINST HARASSMENT.

OVERVIEW OF FUNDAMENTAL WORKERS RIGHTS

Section 18, Article II of the 1987 Constitution

Affirms labor as the primary social economic force and mandates the State
to protect the rights of workers and promote their welfare. This commitment to
safeguard rights of the labor force is reiterated in Article 3 of Presidential Decree
No. 442, otherwise known as the "Labor Code of the Philippines."

Article 3 of the Labor Code of the Philippines

Declaration of Basic Policy — The State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of sex, race or creed, and
regulate the relations between workers and employers. The State shall assure:
1. the rights of workers to self-organization
2. collective bargaining
3. security of tenure
4. just and humane conditions of work.

SPECIFIC RIGHTS RELATED TO WAGES, HOURS, AND JOB SECURITY

HOURS OF WORK

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ART. 83. Normal Hours of Work. — The normal hours of work of any employee
shall not exceed eight (8} in a day.
ART. 84. Hours Worked. — Hours worked shall include:
 All time during which an employee is required to be on duty or to be at a
prescribed workplace; and
 All time during which an employee is suffered or permitted to work.
 Rest periods of short duration during working hours shall be counted as
hours worked
ART. 85. Meal Periods. — Subject to such regulations as the Secretary of Labor
may prescribe, it shall be the duty of every employer to give his employees not less
than sixty (60) minutes time-off for their regular meals.

WEEKLY REST PERIODS

Article 91. Right to weekly rest day. - It shall be the duty of every employer,
whether operating for profit or not, to provide each of his employees a rest period
of not less than twenty-four (24) consecutive hours after every six (6) consecutive
normal workdays.
Article 92. When employer may need work on a rest day. The employer may
require his employees to work on any day:
1. In case of actual or impending emergencies caused by serious accident,
fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to
prevent loss of life and property, or imminent danger to public safety.
2. In cases of urgent work to be performed on the machinery, equipment, or
installation, to avoid serious loss which the employer would otherwise
suffer.
3. In the event of abnormal pressure of work due to special circumstances,
where the employer cannot ordinarily be expected to resort to other
measures.
4. To prevent loss or damage to perishable goods.
5. Where the nature of the work requires continuous operations, and the
stoppage of work may result in irreparable injury or loss to the employer;
and
6. Under other circumstances analogous or similar to the foregoing as
determined by the Secretary of Labor and Employment..

Article 94. Right to holiday pay. Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service establishments regularly
employing less than ten (10) workers; The employer may require an employee to
work on any holiday, but such employee shall be paid a compensation equivalent to
twice his regular rate.
Article 95. Right to service incentive leave. 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.

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Article 96. Service charges. All service charges collected by hotels, restaurants
and similar 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 equally distributed among them. In case the
service charge is abolished, the share of the covered employees shall be
considered integrated in their wages.

MINIMUM WAGE RATES

Article 99. Regional minimum wages. The minimum wage rates for agricultural
and non-agricultural employees and workers in each and every region of the
country shall be those prescribed by the Regional Tripartite Wages and Productivity
Boards. (As amended by Section 3, Republic Act No. 6727, June 9, 1989).
Article 100. Prohibition against elimination or diminution of benefits. Nothing in this
Book shall be construed to eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at the time of promulgation of this Code.
Article 101. Payment by results. The Secretary of Labor and Employment shall
regulate the payment of wages by results, including pakyao, piecework, and other
non-time work, in order to ensure the payment of fair and reasonable wage rates,
preferably through time and motion studies or in consultation with representatives of
workers’ and employers’ organizations.

PAYMENT OF WAGES

Article 102. Forms of payment. No employer shall pay the wages of an employee by
means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object
other than legal tender, even when expressly requested by the employee.

Article 103. Time of payment. Wages shall be paid at least once every two (2)
weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of
force majeure or circumstances beyond the employer’s control, payment of wages
on or within the time herein provided cannot be made, the employer shall pay the
wages immediately after such force majeure or circumstances have ceased. No
employer shall make payment with less frequency than once a month.

Article 104. Place of payment. Payment of wages shall be made at or near the place
of undertaking, except as otherwise provided by such regulations as the Secretary of
Labor and Employment may prescribe under conditions to ensure greater protection
of wages.

Article 105. Direct payment of wages. Wages shall be paid directly to the workers to
whom they are due, except:

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In cases of force majeure rendering such payment impossible or under other special
circumstances to be determined by the Secretary of Labor and Employment in
appropriate regulations, in which case, the worker may be paid through another
person under written authority given by the worker for the purpose; or

Where the worker has died, in which case, the employer may pay the wages of the
deceased worker to the heirs of the latter without the necessity of intestate
proceedings. The claimants, if they are all of age, shall execute an affidavit attesting
to their relationship to the deceased and the fact that they are his heirs, to the
exclusion of all other persons. If any of the heirs is a minor, the affidavit shall be
executed on his behalf by his natural guardian or next-of-kin. The affidavit shall be
presented to the employer who shall make payment through the Secretary of Labor
and Employment or his representative. The representative of the Secretary of Labor
and Employment shall act as referee in dividing the amount paid among the heirs.
The payment of wages under this Article shall absolve the employer of any further
liability with respect to the amount paid.

PROHIBITIONS REGARDING WAGES

Article 112. Non-interference in disposal of wages. No employer shall limit or
otherwise interfere with the freedom of any employee to dispose of his wages. He
shall not in any manner force, compel, or oblige his employees to purchase
merchandise, commodities or other property from any other person, or otherwise
make use of any store or services of such employer or any other person.
Article 113. Wage deduction. No employer, in his own behalf or in behalf of any
person, shall make any deduction from the wages of his employees, except:

 In cases where the worker is insured with his consent by the employer, and
the deduction is to recompense the employer for the amount paid by him as
premium on the insurance.
 For union dues, in cases where the right of the worker or his union to check-
off has been recognized by the employer or authorized in writing by the
individual worker concerned; and
 In cases where the employer is authorized by law or regulations issued by
the Secretary of Labor and Employment.

Article 114. Deposits for loss or damage. No employer shall require his worker
to make deposits from which deductions shall be made for the reimbursement of
loss of or damage to tools, materials, or equipment supplied by the employer,
except when the employer is engaged in such trades, occupations or business
where the practice of making deductions or requiring deposits is a recognized one,
or is necessary or desirable as determined by the Secretary of Labor and
Employment in appropriate rules and regulations.

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Article 115. Limitations. No deduction from the deposits of an employee for the
actual amount of the loss or damage shall be made unless the employee has been
heard thereon, and his responsibility has been clearly shown.
Article 116. Withholding of wages and kickbacks prohibited. It shall be
unlawful for any person, directly or indirectly, to withhold any amount from the
wages of a worker or induce him to give up any part of his wages by force, stealth,
intimidation, threat or by any other means whatsoever without the worker’s
consent.
Article 117. Deduction to ensure employment. It shall be unlawful to make any
deduction from the wages of any employee for the benefit of the employer or his
representative or intermediary as consideration of a promise of employment or
retention in employment.
Article 118. Retaliatory measures. It shall be unlawful for an employer to refuse
to pay or reduce the wages and benefits, discharge or in any manner discriminate
against any employee who has filed any complaint or instituted any proceeding
under this Title or has testified or is about to testify in such proceedings.
Article 119. False reporting. It shall be unlawful for any person to make any
statement, report, or record filed or kept pursuant to the provisions of this Code
knowing such statement, report or record to be false in any material respect.

Rights Under the Law of Discrimination and Protection Against Harassment

1. Mental Health Act (Republic Act No. 11036): Penalizes any form of
discrimination against persons with mental health condition.
2. Labour code provisions on labour unions: These provisions aim to prevent
discrimination regarding the terms and conditions of work to either encourage
or discourage unionism. Employers cannot discriminate against an employee
for having given or being about to give testimony under the labour laws.
3. Magna Carta for Disabled Persons (Republic Act No. 7277): No entity,
whether public or private, shall discriminate against a qualified person with
disability by reason of disability.
4. Expanded Maternity Leave Law (Republic Act No. 11210): this law also
contributes to anti-discrimination efforts by ensuring that pregnancy or the
condition of being a mother does not become a basis for discrimination in
employment.
5. Labour Code and the Magna Carta for Women (Republic Act No. 9710):
Employers are legally prohibited from engaging in any form of discrimination
against female employees based solely on their gender concerning employment
terms and conditions. (Labour Code of the Philippines, Art. 135). Under the
Labour Code of the Philippines, it is considered illegal for employers to impose
conditions on employment that restrict a female employee’s right to marry.
6. Solo Parents’ Welfare Act (Republic Act No. 8972): No employer shall
discriminate against any solo parent employee with respect to terms and
conditions of employment on account of his/her status.
7. Anti-Age Discrimination in Employment Act (Republic Act No. 10911): This
prohibits any form of discrimination against any individual on the basis of age in

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 aspects of employment that include, but are not limited to, hiring, promotion,
training, compensation, and termination.
8. Anti-Sexual Harassment (Republic Act 7877): enacted to protect individuals
from sexual harassment in the workplace and in educational institutions. It
highlights the importance of maintaining a safe, respectful, and dignified
environment, free from any form of sexual coercion, intimidation exploitation.

VI. GROUNDS FOR TERMINATION OF EMPLOYMENT

JUST CAUSES
Just causes are attributable to the misconduct, fault or negligence of an employee.
Just causes under the law are enumerated under Article 297 [282] of the Labor Code
and these are:
 Serious misconduct or willful disobedience by the employee of the lawful orders
of his employer or representative in connection with his work;
 Gross and habitual neglect by the employee of his duties;
 Fraud or willful breach by the employee of the trust reposed in him by his
employer or duly authorized representative;
 Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized
representatives; and
 Other causes analogous to the foregoing.
Some of these analogous causes include abandonment, gross inefficiency, disloyalty
or conflict of interest, dishonesty or violation of company policies, rules and
regulations.
Termination Procedure
To dismiss an employee based on a just cause, the employer has to observe the
two-notice rule and to set a conference or hearing in some cases. The first notice is
commonly known as show cause letter or notice to explain.

First Notice
The first notice is a show cause letter informing the respondent employee of the
nature of the accusations and the grounds for termination and giving the employee
ample opportunity to refute the allegations against him. Although there is no
prescribed number of days to be considered an “ample opportunity,” jurisprudence
considers a five-day notice an ample time for the employee to gather evidence in
support of his defense. The first notice shall likewise set the date of conference
where the employee will present evidence why he should not be terminated from
work.

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All efforts must be exerted to serve the notice to the employee personally. If the
same proves futile, the employer may send it by registered mail to his last known
address.
Administrative Hearing or Conference
During the hearing or conference, the respondent employee, with the assistance of
counsel if he so desires, is given an opportunity to respond to the charge, present his
evidence, or rebut the evidence presented against him.
A hearing is not always required to be set. What is critical is that the employee is
given an opportunity to be heard or to explain his side. For instance, the employee
may be given an opportunity to submit a written explanation instead.
Second Notice
After the investigation and hearing, the company will then decide on whether to
retain or dismiss the employee. The second letter is a written notice to the employee
stating that grounds have been established to justify the dismissal of the employee
considering all the circumstances, evidence submitted, and records on hand.

AUTHORIZED CAUSE

A dismissal based on just cause means that the employee has committed a
wrongful act or omission; while a dismissal based on authorized cause means
that there exists a ground which the law itself authorizes to be invoked to justify the
termination of an employee even if he has not committed any wrongful act or
omission.

Under the Labor Code, authorized causes are classified into two (2) classes,
namely: (1) Business-related causes and (2) Health-related causes. Business-
related causes which are recognized under the said Code are as follows:

1. Installation of Labor-Saving Device

The installation of these devices is a management prerogative and the courts will not
interfere with its exercise in the absence of abuse of discretion, arbitrariness, or
malice on the part of [Link] of labaor-saving device will result in
making positions being held by employees who will be adversely affected thereby
redundant and unnecessary.

2. Redundancy

Redundancy exists when the services of an employee are in excess of what is

reasonably demanded by the actual requirements of an enterprise. This happens
when the position is superfluous because of a number of factors such as over-hiring
of workers, decreased volume of business, dropping of a particular product line or
service activity previously manufactured or undertaken by the enterprise or phasing
out of service activity priorly undertaken by the business.

3. Retrenchment

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Retrenchment has been defined as “the termination of employment initiated by the
employer through no fault of the employees and without prejudice to the latter,
resorted to by management during periods of business recession, industrial
depression, or seasonal fluctuations; or during lulls occasioned by lack of work or
orders, shortage of materials; or considerable reduction in the volume of employer’s
business, conversion of the plant for a new production program or the introduction of
new methods or more efficient machinery, or of automation. Proof of losses or
possible imminent losses is the distinctive requisite of retrenchment.

4. Closure or Cessation of Business Operations

Closure or cessation of business is the complete or partial cessation of the

operations or shutdown of the establishment of the employer. It is carried out to
stave off the financial ruin or promote the business interest of the employer.

Disease is also of one the authorized causes to terminate employment. However, not
all kinds of disease may be considered as a valid ground to terminate employment. It
must be proven that an employee’s continued employment is prohibited by law or
prejudicial to his health as well as to the health of his co-employees. Further, a
competent public health authority must issue a medical certificate that the disease is
of such nature or at such a stage that it cannot be cured within a period of six (6)
months even with proper medical treatment.

VII. NORMAL HOURS OF WORK AND COMPENSATION

The Labor Code of the Philippines Presidential Decree No. 442, As Amended
ART. 83. Normal Hours of Work. – The normal hours of work of any employee shall
not exceed eight (8) hours a day. Working hours shall include:
 all time during which an employee is required to be on duty and/or to be at a
prescribed workplace;
 all time during which an employee is permitted to work; and
 rest periods of short duration during working hours.
ART. 84. Hours Worked. – Hours worked shall include (a) all time during which an
employee is required to be on duty or to be at a prescribed workplace; and (b) all
time during which an employee is suffered or permitted to work.
ART. 85. Meal Periods. – Subject to such regulations as the Secretary of Labor may
prescribe, it shall be the duty of every employer to give his employees not less than
sixty (60) minutes time-off for their regular meals.
ART. 86. Night-Shift Differential. – Every employee shall be paid a night shift
differential of not less than ten percent (10%) of his regular wage for each hour of
work performed between ten o’clock in the evening and six o’clock in the morning.

REPUBLIC ACT NO. 11701

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 RULE III. NIGHT-SHIFT DIFFERENTIAL
Section 4. Night-shift differential pay may be granted to government personnel who
render services between 6 p.m. and 6 a.m. of the following day, as authorized by the
head of agency, at a rate not exceeding twenty percent (20%) of the hourly basic
rate of the employee.
In the case of public health workers, their night-shift differential pay shall not be
lower than 10% of their hourly basic rate.
Section 5. When the schedule of working hours falls partly between 6 p.m. and 6
a.m., the night-shift differential pay shall be paid for the hour/s of work performed
between 6 p.m. and 6 a.m. of the following day.
Section 6. When an employee working a regular night shift, falling between 6 p.m.
and 6 a.m., renders services in excess of the regular 8-hour night shift, the excess
hours shall be compensated in accordance with the rules and regulations on
overtime services and overtime pay.
Section 7. Upon consultation with the employees concerned, the head of agency
shall formulate and adopt internal rules and procedures consistent with the provision
of these Rules, particularly on determining the night shift differential rate which shall
not exceed twenty percent (20%) of the hourly basic rate of the employee and
subject to availability of funds.
Section 8. Night-shift differential pay shall be in addition to regular salaries and other
emoluments and shall not in any way diminish whatever benefits and allowances are
presently enjoyed by government employees.

EMPLOYEE RIGHT TO WEEKLY REST DAY, HOLIDAY PAY, AND SERVICE

INCENTIVE LEAVE
Right to Weekly Rest Day
It shall be the duty of every employer to provide each of his employees a rest period
of not less than twenty-four (24) consecutive hours after every six (6) consecutive
normal work days.
The employer shall determine and schedule the weekly rest day of his employees to
be subject to collective bargaining agreement and to such rules and regulations as
the Secretary of Labor and Employment may provide. However, the employer shall
respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds.
Right to holiday pay
1) Every worker shall be paid his regular daily wage during regular holidays, except
in retail and service establishments regularly employing less than 10 workers;
2) The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate; and

21
3) As used in this Article, “holiday” includes: New Year’s Day, Maundy Thursday,
Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of
July, the thirtieth of November, the twenty-fifth and thirtieth of December, and the
day designated by law for holding a general election.

Right to service incentive leave

1. 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.
2. 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 from granting this benefit by the Secretary of
Labor and Employment in the Philippines after considering the viability or
financial condition of such establishment.
3. The grant of benefit in excess of that provided herein shall not be made a subject
of arbitration or any court or administrative action.

MANDATORY COMPENSATION FOR REST DAY, SUNDAY, OR HOLIDAY

WORK
Article 93 of the Labor Code stipulates that:
 When an employee is made or permitted to work on their scheduled rest day,
they shall be paid an additional compensation of at least thirty percent (30%) of
their regular wage. They shall be entitled to such additional compensation for
work performed on Sunday only when it is their established rest day.
 When the nature of the work of the employee is such that they have no regular
work days and no regular rest days can be scheduled, they shall be paid an
additional compensation of at least thirty percent (30%) of their regular wage for
work performed on Sundays and holidays.
 Work performed on any special holiday shall be paid an additional compensation
of at least thirty percent (30%) of the employee’s regular wage. When such
holiday work falls on an employee’s scheduled rest day, they shall be entitled to
an additional compensation of at least fifty percent (50%) of their regular wage.
 When the collective bargaining agreement or other applicable employment
contract stipulates the payment of a higher premium pay than prescribed by the
Labor Code, the employer shall pay such higher rate.

22
 References:
Admin. (2022, October 5). Types of employment. InCorp Philippines.
[Link]
S. (2024, June Arshad, 6). Understanding Employee Benefits in the
Philippines. RecruitGo. [Link]
philippines/#h-leave-policy-in-the-philippines
An act defining Gender-Based sexual harassment in streets, public spaces,
online, workplaces, and educational or training institutions, providing
protective measures and prescribing penalties therefor. (n.d.)
Barcelos, K. (2024, April 2). The best recruitment strategies for the
hospitality industry. Jobsoid
Book Three : Labor Code of the Philippines : Presidential Decree No. 442,
as Amended
Codm. “Letting Go of Your Employees: A Guide in Valid Termination of
Employment in the Philippines.” Barrozo Law Office, 25 Aug. 2020,
[Link]/letting-go-of-your-employees-a-guide-in-valid-termination-of-
employment-in-the-philippines/.
‌Educaloi. (2023). Rights and Responsibilities of Employers and Employees.
É[Link], B. (2024). Employee Benefits in the Philippines: All You
Need to Know | Remote. Blog | Remote. [Link]
employee-benefits-compensation
Ganesh, K. (2024, July 19). Employee engagement and retention: Top
strategies and 50+ survey questions to try in 2024. CultureMonkey.
IRR of REPUBLIC ACT NO. 11313 - THE IMPLEMENTING RULES AND
REGULATIONS OF REPUBLIC ACT NO. 11313 OR “AN ACT DEFINING
GENDER-BASED SEXUAL HARASSMENT IN STREETS, PUBLIC SPACES,
ONLINE, WORKPLACES, AND EDUCATIONAL OR TRAINING
INSTITUTIONS, PROVIDING PROTECTIVE MEASURES AND
PRESCRIBING PENALTIES THEREFOR”, OTHERWISE KNOWN AS THE
“SAFE SPACES ACT” - Supreme Court E-Library. (n.d.).
Kulkarni, R. D. (2023, June 27). Ensuring compliance: The vital importance
of Labor law adherence.
Supreme Court e-library information at your fingertips. RSS. (n.d.).
[Link]
S, A. V. (2024, August 16). Feedback mechanisms: Definition, types, and
ways to improve the process in the workplace. CultureMonkey.
9 Best recruitment methods for HR to use. (2022, September 28). Personio.
Lozada, A. (n.d.). Legal_Aspect_in_Tourism___Hospitality_Module.pdf.
Scribd.

23
 Quiz:
Multiple Choice
1. Which of the following is NOT a mandatory employee benefit in the
Philippines?
a) Social Security System (SSS)
b) Health Insurance
c) Private Health Insurance - answer
d) Home Development Mutual Fund (HDMF)

2. What is the minimum amount of 13th month pay that a regular employee
who has worked the full year in the Philippines is entitled to?
a) One-half month's salary
b) One month's salary – answer
c) One and a half month's salary
d) Two month's salary

[Link] includes the goals of providing a clear performance evaluation,

constructive feedback, development and career planning and documentation
to ensure the alignment of the strengths and weaknesses of employees to
improve while supporting decisions related to compensation, promotions,
training and development.
a) Employee Retention
b) Performance Appraisal Systems
c) Feedback Mechanism
d) Employee Engagement

4. All are Strategies For Effective Recruitment And Training except:

a) Job Boards/Job Postings
b) Recruitment Agencies
c) Employee Referrals
d) Legal Compliance and Avoidance of Penalties

5. What RA is the Gender-based sexual harassment in the workplace?

a) RA11131
b) RA31131
c) RA11313
d) RA13113 Answer - C

24
6. Education and Training in the institutions are not encouraged to be
conducted regulary such as training and awareness programs about sexual
harassment and the provisions of the Safe Spaces Act to create a safer
environment.
a) [Link]
b) [Link] Answer – B

7. This makes it unlawful to treat someone differently because of their age in

any job-related context, including hiring, promotion, training, compensation,
and termination.
a. Anti-Sexual Harassment
b. Anti-Age Discrimination in Employment Act
c. Solo Parents’ Welfare Act
d. Magna Carta for Disabled Persons

8. This law supports anti-discrimination efforts by prohibiting workplace

discrimination based on pregnancy or motherhood status.
a. Magna Carta for Disabled Persons
b. Anti-Sexual Harassment
c. Magna Carta for Women
d. Expanded Maternity Leave Law

9. According to Article 85 Meal Period, How many minutes time-off for their
regular meals on their duty?
a) 60 minutes
b) 30 minutes
c) 25 minutes
d) 35 minutes

10. According to ART. 86. Night-Shift Differential, Every employee shall be

paid a night shift differential of not less than ten percent (10%) of his
regular wage for each hour of work performed between ten o’clock in the
evening and six o’clock in the morning.
a) True
b) False

25