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631009482 CHRA Labor Code Reviewer pdf

Bachelor of Science in Nursing (Cebu Normal University)

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PRELIMINARY TITLE 3. OTHERS: SSS Law, GSIS Law, Agrarian Reform Law, the
13th month pay law, the Magna Carta for Public Health Workers,
CHAPTER I etc.
GENERAL PROVISIONS
RATIONALE: The raison d’etre of labor laws is the POLICE
ART 1. NAME OF DECRE POWER of the State
LABOR LEGISLATION - Consists of statutes, regulations and
jurisprudence governing the relations between capital and labor, ART 3. DECLARATION OF BASIC POLICY
by providing for certain standards of terms and conditions of The State shall afford protection to labor, promote full
employment or providing a legal framework within which these employment, ensure equal work opportunities regardless of sex,
terms and conditions and the employment relationship may be age, or creed, and regulate the relations between workers and
negotiated, adjusted, and administered. It is divided into labor employers. The State shall assure the right of workers to self-
standards and labor relations. organization, collective bargaining, security of tenure, and just
LABOR STANDARDS - Are the minimum requirements and humane conditions of work.
prescribed by existing laws, rules and regulations relating to
wages, hours of work, cost-of-living allowance, and other EMPLOYER - one who employs the services of others; one for
monetary and welfare benefits, including occupational safety, whom employees work and who pays their wages or salaries.
and health standards EMPLOYEE - one who works for an employer; a person working
LABOR RELATIONS LAW - defines the status, rights, and for salary or wages
duties and the institutional mechanisms that govern the
individual and collective interactions of employers, employees, ART 4. CONSTRUCTION IN FAVOR OF LABOR
or their representatives. CONSTRUCTION IN FAVOR OF LABOR CLAUSE - this is with
- The law which seeks to stabilize the relation between employer a view to apply the Code to the greater number of employees to
and employee, to forestall and thresh out their differences enable them to avail of the benefits under the law (Abella vs.
through the encouragement of collective bargaining and the NLRC). The working man’s welfare should be the primordial
settlement of labor disputes through conciliation, mediation, and consideration
arbitration. - This rule is applicable if there is a doubt as to the meaning of
the legal or contractual provision. If the provision is clear and
ART. 2. DATE OF EFFECTIVITY - The Labor Code took effect unambiguous, it must be applied in accordance with its express
on November 1, 1974 (six months after its promulgation on May terms.
1,1974) - These laws should be interpreted with a view to the fact
that they are remedial in nature, they are enacted to better the
SEVEN (7) BASIC RIGHTS OF WORKERS AS lot and promote the welfare of the members of the laboring
GUARANTEED BY THE CONSTITUTION (OCESHLP): class.
1. Right to Organize - Reservation of essential attributes of sovereign power is
2. Right to Conduct Collective Bargaining or Negotiation with read into contracts as a postulate of the legal order.
Management - Courts adopt a liberal approach that favors the exercise of
3. Right to Engage in Peaceful Concerted Activities including labor rights. The mandate under Art. 4 is simply to resolve
strike in accordance with law doubt, if any, in favor of labor. If there is no doubt in
4. Right to Enjoy Security of Tenure implementing and interpreting the law, labor will enjoy no built-
5.Right to Work Under Humane Conditions in advantage and the law will have to be applied as it is.
6.Right to Receive a Living Wage
7.Right to Participate in Policy & Decision-Making Processes MANAGEMENT RIGHTS: (CPST)
affecting their rights and benefits as may be provided by law C Right to conduct business
P Right to prescribe rules
RELATED LAWS: S Right to select employees
1. CIVIL CODE: see Arts. 1700, 1701and 1703 T Right to transfer or discharge employees
2. REVISED PENAL CODE: Art. 289
MANAGEMENT PREROGATIVE

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Except as limited by special laws, an employer is free to

regulate, according to his own discretion and judgment, all
aspects of employment, including:
HIRING, WORK ASSIGNMENTS, WORKING METHODS,
TIME PLACE AND MANNER OF WORK, TOOLS TO BE
USED, PROCESSES TO BE FOLLOWED, SUPERVISION
OF WORKERS, WORKING REGULATIONS, TRANSFER
OF EMPLOYEES, WORK SUPERVISION, LAY-OFF OF
WORKERS, AND DISCIPLINE, DISMISSAL AND RECALL
OF WORKERS. (HW5T2PLSD)
Thus, so long as management prerogatives are exercised in
good faith for the advancement of the employer’s interest and
not for the purpose of defeating or circumventing the rights of
employees under special law or under valid agreements, it shall
be upheld.

ART 5. RULES AND REGULATIONS CHAPTER II

- The rules and regulations issued by the DOLE shall become EMANCIPATION OF TENANTS
effective 15 days after announcement of their adoption in
newspapers of general circulation ART 7-11
- Share tenancy has been abolished placing in its stead
ART 6. APPLICABILITY leasehold system.
AGRICULTURAL OR FARM WORKER - one employed in an - Under Art. 8, the land covered by operation land transfer must
agricultural or farm enterprise and assigned to perform tasks be private agricultural land, tenanted, primarily devoted to
which are directly related to the agricultural activities of the rice and/or corn, and more than seven hectares in are
employer, such as cultivation and tillage of the soil, dairying,
growing and harvesting of any agricultural and horticultural Present retention limits:
commodities, the raising of livestock or poultry, and any - 5 hectares per landowner and 3 hectares per child provided
activities performed by a farmer as an incident to or in the child is:
conjunction with such farming operations. 1. Is at least 15 years of age; and
2. Tilling the land or directly managing the farm
- There may be in one employer both agricultural as well as
industrial workers. EXCEPTIONS:
- PURPOSE of the provision: intended to encourage workers - those covered by homestead patents
to seek employment in agricultural enterprises instead of - those covered by PD 27
migrating to already overcrowded urban areas to find work in
industrial establishments EMANCIPATION PATENT - is the title issued to the tenant upon
- The LC applies to all workers, whether agricultural or non- compliance with all the requirements of the government. It
agricultural, including employees in a government corporation represents the full emancipation pf the tenant from the bondage
incorporated under the Corporation Code of the soil.

PROHIBITION AGAINST ALIENATION IS INTENDED TO:

1. Preserve the landholding in the hands of the owner-tiller
and his heirs.
2. minimize land speculation; and
3. prevent a return to the regime of land ownership by a few.

BOOK ONE
PRE-EMPLOYMENT

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agencies or entities; and b. Disciplinary action cases and other

TITLE I special cases which are administrative in character, involving
RECRUITMENT AND employers, principals, contracting partners and Filipino Migrant
PLACEMENT OF WORKERS Workers

CHAPTER I JURISDICTION TRANSFERRED TO THE LABOR ARBITERS

GENERAL PROVISIONS OF THE NLRC: a. claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino
ART 13. DEFINITIONS workers for overseas deployment including claims for actual,
WORKER - any member of the labor force, whether employed moral, exemplary, and other forms of damages.
or unemployed
RECRUITMENT AND PLACEMENT - any act of canvassing, Venue – Money claims or claims for damages should be filed
enlisting, contracting, transporting, utilizing, hiring, or procuring before the Regional Arbitration branch of the NLRC where the
workers, and includes referrals, contract services, promising or complainant resides or where the principal office of the
advertising for employment, locally or abroad, whether for profit respondent/employer is situated, at the option of the
or not; PROVIDED, that any person or entity which, in any complainant.
manner, offers or promises for a fee employment to two or more
persons shall be deemed engaged in recruitment and Compromise Agreement - Consistent with the policy
placement. (CEC-TUCP) (RCPA) encouraging amicable settlement of labor disputes, Sec 10, RA
-The number of persons dealt with is not an essential ingredient 8042 allows resolution by compromise of cases filed with the
of the act of recruitment and placement of workers. The proviso NLRC.
merely creates the presumption.
PREMATURE TERMINATION OF CONTRACT - Where the
ART 16. PRIVATE RECRUITMENT worker’s employment contract is terminated long before its
➢ ENTITIES AUTHORIZED TO RECRUIT agreed termination date, and the termination is not shown to be
1. Public employment offices based on lawful or valid grounds, the employer will be ordered
2. Private recruitment entities; private employment agencies to pay the workers their salaries corresponding to the unexpired
3. Shipping or manning agents or representatives portion of their employment contract. (Tierra Int’l Construction
4. The POEA Corp. vs. NLRC).
5. Construction contractors if authorized by the DOLE and the
Construction Industry Authority HOWEVER, under R.A. 8042, if the illegal dismissal took place
6. Members of the diplomatic corps (but hirings must also go on or after July 15, 1995, the illegally dismissed overseas
thru POEA) worker shall be entitled to the full reimbursement of his
7. Other persons or entities as may be authorized by the DOLE placement fee with interest at the rate of 12% per annum
secretary plus salary for the unexpired portion of his employment
contract or for 3 mos. for every year of the unexpired term
DOCUMENTATION OF WORKERS: whichever is LESS.
1. Contract Processing – workers hired thru the POEA shall be
issued the individual employment contract and such other - Claims for death and burial benefits involving seamen
documents as may be necessary for travel OCWs which the POEA has jurisdiction are not the same as
2. Passport Documentation the claims against the State Insurance Fund of the LC.
3. Visa Arrangement
ART 17. (POEA) - POEA has taken over the functions of the - The basis for the award of back wages is the parties”
OEDB employment contract, stipulating the wages and benefits.

ADJUDICATORY FUNCTIONS OF THE POEA: - The fact that the employee has signed a satisfaction
a. All cases which are administrative in character, involving or receipt does not result in waiver; the law does not consider
arising out of violations of rules and regulations relating to as valid any agreement to receive less compensation than
licensing and registration of recruitment and employment

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what the worker is entitled to recover. (MR Yard Crew Union 3. Those not otherwise disqualified by law or these guidelines to
vs. PNR) engage in the recruitment and placement of workers for
overseas employment
MINIMUM EMPLOYMENT CONDITIONS OF OVERSEAS
EMPLOYMENT: DISQUALIFICATIONS:
1. Guaranteed wages for regular working hours and overtime 1. Travel agencies and sales agencies of airline companies.
pay for services rendered beyond regular working hours in 2. Officers or members of the board of any corporation or
accordance with the standards established by the members in a partnership engaged in the business of a travel
Administration agency.
2. Free Transportation from point of hire to site of employment 3. Corporations and partnerships, when any of its officers,
and return. members of the board or partners, is also an officer, member of
3. Free emergency medical and dental treatment and facilities. the board or partner of a corporation engaged in the business of
4. Just causes for termination of the contract or of the services a travel agency. 4. Persons, partnerships, or corporations which
of the workers. have derogatory records.
5. Workmen’s compensation benefits and war hazard 5. Persons employed in the Department of Labor or in other
protection. government agencies directly involved in overseas employment
6. Repatriation of worker’s remains and properties in case of program and their relatives within the 4th degree of
death to the point of hire, or if this is not possible the possible consanguinity or affinity; or
disposition thereof 6. Those whose license has been previously canceled or
7. Assistance on remittance of worker’s salaries, allowances, or revoked.
allotments to his beneficiaries; and
8. Free and adequate board and lodging facilities or CHAPTER II
compensatory food allowance at prevailing cost of living REGULATIONS OF RECRUITMENT AND
standards at the jobsite. PLACEMENT ACTIVITIES

ART 22. MANDATORY REMITTANCE OF FOREIGN ART 29. NON-TRANSFERABILITY OF LICENSE OR

EXCHANGE EARNINGS AUTHORITY
➢ MANDATORY REMITTANCE REQUIREMENTS: - No license or authority shall be used directly or indirectly
1. Seamen or mariners: 80% of the basic salary. by any person other than the one in whose favor it was
2. Workers for Filipino Contractors and Construction issued or at any place other than that stated in the license or
Companies: 70% of the basic salary. authority, nor may such license or authority be transferred,
3. Doctors, engineers, teachers, nurses, and other professionals conveyed, or assigned to any other person or entity.
whose employment contract provide for lodging facilities: same - Licensees or holders of authority or their duly authorized
as #2 representatives may as a rule, undertake recruitment and
4. All other professionals without board and lodging: 50% of the placement activities only at their authorized official
basic salary. addresses.
5. Domestic and other service of workers; 50% of the basic - Change of ownership or relationship of single
salary proprietorship licensed to engage in overseas employment
shall cause the automatic revocation of the license.
ART 25. PRIVATE SECTOR PARTICIPATION IN THE - All overseas land-based workers shall be provided both life
RECRUITMENT AND PLACEMENT OF WORKERS and personal accident insurance.
➢ QUALIFICATIONS FOR PARTICIPATION IN THE
OVERSEAS EMPLOYMENT PROGRAM: GROUNDS FOR DISCIPLINARY ACTION (Under the MWA of
1. Filipino citizens, partnerships, or corporations at least 75% of 1995).
the authorized and voting capital stock of which is owned and 1. Commission of a felony punishable by the laws of the
controlled by Filipino citizens. Philippines or by the host country.
2. Minimum capitalization of 1M in case of single proprietorship 2. Drug addiction or possession or trafficking of prohibited drugs.
or partnership and a minimum of 1M paid-up capital for 3. Desertion or abandonment.
corporations.

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4. Drunkenness, especially where the laws of the of the host PROVIDED that any such non-licensee or non-holder of
country prohibit the same. authority who in any manner, offers or promises for a fee
5. Gambling, especially where the laws of the host country employment abroad to two or more persons shall be
prohibit the same. deemed so engaged. It shall likewise include the
6. Initiating or joining a strike or work stoppage where the laws commission of prohibited acts whether committed by a non-
of the host country prohibit strikes or similar actions. licensee or non-holder of authority or a licensee or holder
7. Creating trouble at the worksite or in the vessel. of authority.
8. Embezzlement of company funds or of money an properties
of a fellow worker entrusted for delivery to kins or relatives in the PROHIBITED PRACTICES: (CFGIIEOFSBWF)
Philippines; C to charge or accept amount beyond amount allowed by
9. Theft or robbery. law
10. Prostitution. F to furnish or publish false notice or information in relation
11. Vandalism or destroying company property. to Recruitment and Placement
12. Gunrunning or possession of deadly weapons. G to give any false notice and information or commit any
13. Unjust refusal to depart for the worksite after all employment act of misrepresentation to secure license or authority
and travel documents have been duly approved by the I Induce or attempt to induce workers to quit
appropriate government agency; and 14. Violation of the laws employment to offer him another except if the transfer is
and sacred practices of the host country and unjustified breach to liberate a worker from oppressive terms and
of government approved employment contract by a worker. conditions of employment (NOTE: it is not necessary
that worker was induced or did quit employment)
ART 31. BONDS I to influence or attempt to influence any person or entity
Suspension or cancellation of licenses may include award of not to employ any worker who has not applied for
damages to repair the injury caused to its victims employment in his agency
E to engage in the recruitment or placement of workers in
ART 34. PROHIBITED PRACTICES jobs harmful to public health or morality or to the dignity
A supplementary contract beneficial to worker not violative of the Phil.
of protection afforded by the State to workers.
O Obstruct or attempt to obstruct inspection by Secretary
F Fail to file reports S Substitute or alter employment
ART 35. SUSPENSION AND/OR CANCELLATION OF
contracts
LICENSE OR AUTHORITY
B Become officer or Board member of corporation
NON-LICENSEE OR NON-HOLDER OF AUTHORITY - any
engaged in travel agency
person, corporation or entity which has not been issued a valid
W Withhold or deny travel documents before the departure
license or authority to engage in recruitment and placement by
for monetary or financial consideration other than those
the Secretary of Labor, or whose license or authority has been
authorized by the Code.
suspended, revoked, or cancelled by the POEA and the
Secretary F Failure to deploy without valid reason as determined by
the DOLE
CHAPTER III F Failure to reimburse expenses incurred by the worker in
MISCELLANEOUS PROVISIONS connection with his documentation and processing for
purposes of deployment, in cases where the
ART 38. ILLEGAL RECRUITMENT (as per RA 8042 deployment does not actually take place without the
otherwise known as the Migrant Workers’ Act of 1995) worker’s fault

ILLEGAL RECRUITMENT - Any act of canvassing, enlisting, THE QUALIFYING CIRCUMSTANCES THAT WOULD MAKE
contracting, transporting, utilizing, hiring, or procuring workers ILLEGAL RECRUITMENT AS A CRIME INVOLVING
and includes referring contract services, promising or ECONOMIC SABOTAGE ARE:
advertising for employment abroad, whether for profit or not When committed by a SYNDICATE i.e., if it is carried out by a
when undertaken by a non-licensee or non-holder of authority group of three (3) or more persons conspiring and confederating
with one another; or

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(a) When committed in a LARGE SCALE i.e., if it is control a right, franchise, privilege, property or business the
committed against three (3) or more persons exercise or enjoyment of which property or business the
exercise or enjoyment of which is expressly reserved by the
VENUE OF ACTIONS ON ILLEGAL RECRUITMENT: Constitution or the laws to citizens of the Philippines or to
1. RTC of the province or city where the offense was committed; corporations or associations at least 60% of the capital of which
or is owned by such citizens.
2. where the offended party resides at the time of the
commission of the offense EXCEPTIONS TO THE PROHIBITION:
→at the option of the complainant a. where the Secretary of Justice specifically authorizes the
- These circumstances only qualify. They do not define the employment of technical personnel; or
offense themselves b. where the aliens are elected members of the board of
directors or governing body of corporations or association in
- Recruitment and placement activities of agents or proportion to their allowable participation in the capital of such
representatives appointed by a licensee, whose appointments entities.
were not previously authorized by the POEA shall likewise
constitute illegal recruitment. BOOK TWO
HUMAN RESOURCES DEVELOPMENT
ART. 38 (c) declared unconstitutional since only a judge
may issue search warrant/ warrant of arrest. The Sec. Of TITLE I
Labor may only recommend not issue. However, Closure NATIONAL MANPOWER DEVELOPMENT PROGRAM
of establishments of illegal recruiters may still be ordered
by Secretary of Labor, same being essentially CHAPTER I
administrative and regulatory in nature. (Salazar vs. NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY
Achacoso and Marquez) FOR THEIR IMPLELENTATION

PRESCRIPTIVE PERIOD ART 45. DEFINITIONS

Illegal Recruitment cases under RA 8042 shall prescribe in five MANPOWER - that portion of the nation’s population which has
(5) years Provided, however, That illegal recruitment cases actual or potential capability to contribute directly to the
involving economic sabotage shall prescribe in twenty (20) production of goods and services. ENTREPRENEURSHIP -
years training for self-employment or assisting individual or small
industries within the purview of this the LC.
TITLE II EMPLOYMENT OF NON-RESIDENT ALIENS
TITLE II
ART 40. EMPLOYMENT PERMIT OF NON-RESIDENT TRAINING AND EMPLOYMENT
ALIENS - Foreigners or domestic and foreign employers OF SPECIAL WORKERS
desiring to employ aliens must secure employment permit from
the DOLE upon determination of the non-availability of a person CHAPTER I APPRENTICES
in the Philippines who is competent, able, and willing at the time
Types of Special Workers:
of the application to perform the services for which the alien is
1. Apprentice
desired
2. Learners
- Foreigners may not be employed in certain nationalized
3. Handicapped
business.
- a non-resident alien worker and the employer shall bind
ART 58. DEFINITION OF TERMS
themselves to train at least 2 Filipino understudies.
APPRENTICESHIP - practical training on the job supplemented
by related theoretical instruction
PROHIBITION AGAINST EMPLOYMENT OF ALIENS Section
2-A of the Anti-Dummy Law prohibits the employment of aliens
in establishment or entities which have under their name or

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APPRENTICE - worker who is covered by a written

apprenticeship agreement with an individual employer or any of ART 72. APPRENTICES WITHOUT COMPENSATION
the entities recognized under this chapter ➢ Apprentices who may be hired without
APPRENTICEABLE OCCUPATION - any trade, form of compensation:
employment or occupation which requires more than 3 months 1. those whose training on the job is required by the school.
of practical training on the job supplemented by related 2.Training Program Curriculum.
theoretical instruction 3.Requisite for Graduation; or 4.A requisite for Board
APPRENTICESHIP AGREEMENT - an employment contract Examination
wherein the employer binds himself to train the apprentice and
the apprentice in turn accepts the terms of training CHAPTER II
ON-THE-JOB TRAINING – the practical work experience LEARNERS
through actual participation in productive activities given to or
acquired by an apprentice ART 73. LEARNERS DEFINED
HIGHLY TECHNICAL INDUSTRIES – trade, business, LEARNERS - persons hired as trainees in semi-skilled and
enterprise, industry, or other activity, which is engaged in the other industrial occupations which are non-apprentice able, and
application of advanced technology which may be learned thru practical training on the job in a
relatively short period of time which shall not exceed 3 mos.
ART 59. QUALIFICATIONS OF APPRENTICES APPRENTICESHIP LEARNERSHIP
➢ Qualifications of an Apprentice 1. Practical training on the job 1. Hiring of persons as
1. at least 15 years of age; provided those who are at least 15 supplemented by related trainees in semi-skilled and
years of age but less than eighteen may be eligible for theoretical instruction. other industrial occupations
apprenticeship only in non-hazardous occupations and the which are non-
apprenticeable and which
apprenticeship agreement shall be signed in his behalf by the
may be learned thru practical
parent or guardian or authorized representative of DOLE. training on the job in a
2. vocational aptitude/ capacity for appropriate test relatively short period of
3. ability to comprehend and follow oral and written instructions time.
2. Not less than 3 months 2. Practical training on the
practical training on the job job not to exceed 3 mos.
ART 60. EMPLOYMENT OF APPRENTICES
but not more than 6 months
- Only employers in highly technical industries may hire 3. With Commitment to
3. No Commitment to hire
apprentices and only in apprentice able occupations as employ the learner as
determined by the Sec. Of Labor regular employee if he
desires upon completion of
Requisites for a VALID APPRENTICESHIP learnership
4. In case of pretermination 4. Learner is considered as a
1. QUALIFICATIONS OF THE APPRENTICE
of the apprenticeship regular employee in case of
2. APPRENTICESHIP AGREEMENT DULY EXECUTED AND agreement, the worker is not pretermination of contract
SIGNED PROVIDING FOR COMPENSATION NOT LESS considered as a regular after 2 mos. of training and
THAN 75% OF THE APPLICABLE MINIMUM WAGE, EXCEPT employee the dismissal is without fault
ON-THE-JOB TRAINING (OJT) of learner
3. APPRENTICESHIP PROGRAM DULY APPROVED BY 5. Highly technical industries 5. Semi-skilled / industrial
DOLE4. PERIOD OF APPRENTICESHIP SHALL NOT and only in industrial occupations
occupation
EXCEED 6 MONTHS.

Learners in piecework/ incentive - rate jobs are to be paid in

ART 71. DEDUCTIBILITY OF TRAINING COSTS
full for the work done.
➢ Requisites for tax deductions in case employers
have apprenticeship programs:
CHAPTER III
1. Program duly recognized by the Department of Labor
HANDICAPPED WORKERS
2. Deduction shall not exceed 10% of direct labor wage
3. Pay his apprentices the minimum wage

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ART 78. DEFINITION agent, supervises or controls the work performance and pays
HANDICAPPED WORKERS - Are those whose earning the salary or wage of the hire.
capacity is impaired by age or physical or mental deficiency or
injury. Employees Exempt from the Benefits of E-E Relationship
- Subject to the provisions of the Code, handicapped workers 1. Government Employees
may be hired as regular workers, apprentices, or learners if 2. Managerial Employees
their handicap is not such as to effectively impede the 3. Field Personnel
performance of job operations in the occupations for which 4. Family Members dependent on the employer for support
they were hired. 5. Domestic Helpers
- qualified disabled employee shall be subject to the same 6. Persons on the Personal Service of another
terms and conditions of employment and the same
7. Workers Paid by Result
compensation, privileges, benefits, fringe benefits, incentives, or
allowances as a qualified able-bodied person. Even a
GOVERNMENT EMPLOYEES - Refers only to employees of
handicapped worker can acquire the status of a regular
government agencies, instrumentalities, or political subdivisions
employee
and of government corporations that are not incorporated under
the Corporation Code, meaning those which have original
Duration of employment - no minimum, no maximum.
charters.
Dependent on agreement but is necessary that there is a
MANAGERIAL EMPLOYEES - Refer to those whose primary
specific duration
duty consists of the management of the establishment in which
they are employed or of a department or subdivision thereof and
BOOK THREE CONDITIONS OF EMPLOYMENT to other members of the managerial staff
Note: Definition applies only to the 8- hour Labor law
TITLE I
WORKING CONDITIONS FIELD PERSONNEL - Refer to non-agricultural employees who
AND REST PERIODS regularly perform their duties away from the principal place of
business or branch office of the employer and whose actual
CHAPTER I hours of work in the field cannot be determined with reasonable
HOURS OF WORK certainty.
WORKERS PAID BY RESULTS - Method of computing
ART 82. COVERAGE ELEMENTS OF EMPLOYER compensation based on the work completed and not on the time
➢ EMPLOYEE RELATIONSHIP: spent in working.
1. selection and engagement of the employee PIECE-RATE METHOD - Where pay is dependent on unit of
2. the payment of wages product finished, preferred where the work process is repetitive,
3. the power of dismissal and the output is standardized and easily countable.
4. the employer’s power to control the employee (with respect to DOMESTIC HELPERS/ PERSONS RENDERING PERSONAL
the means and methods by which the work is to be SERVICES - Perform services in the employer’s home which
accomplished) are usually necessary and desirable for the maintenance or
- The last element as mentioned above is what is known as the enjoyment thereof, or ministers to the personal comfort,
CONTROL TEST - whether the employer controls or has convenience, or safety of the employer, as well as the members
reserved the right to control the employee not only as to the of the employer’s household.
result of the work to be done but also as to the means and - The existence of employment relationship is determined by
methods by which the same is to be accomplished. This last law and not by contract.
element is the most important index of the existence of the - Whether or not an employer-employee relationship exists
relationship. between the parties is a question of fact. The findings of the
NLRC are accorded not only respect but finality if
EMPLOYEE - A natural person who is hired, directly or supported by substantial evidence
indirectly, by a natural or juridical person to perform activities
related to the business of the “hirer” who, directly or through an

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MANAGEMENT PREROGATIVE - except as otherwise limited end of his normal working hours because he had no
by special laws, an employer is free to regulate, according to his replacement, all time spent for such work shall be considered as
own discretion and judgment, all aspects of employment, hours worked if the work is with the knowledge of his employer
including hiring, work assignments, working methods, time, or immediate supervisor
place, and manner of work, tools to be used, processes to be 4. The time during which an employee is inactive by reason of
followed, supervision of workers, working regulations, transfer interruptions in his work beyond his control shall be considered
of employees, work supervision, lay-off of workers and time either if the imminence of the resumption of work requires
discipline, dismissal and recall of workers. the employee’s presence at the place of work or if the interval is
too brief to be utilized effectively and gainfully in the employee’s
- Management prerogative recognizes the right of the own interest.
employer to advance its interest to prescribe standards of
work and impose reasonable quotas or work assignments, and - Only the maximum is prescribed, not minimum. Part- time
failure on the part of the employees to meet the requirement, work is therefore not prohibited.
impose in good faith, constitutes a just cause for his dismissal ENGAGED TO WAIT - when waiting is an integral part of the
job, it is compensable
- New owner/management group has no obligation to re- WAITING TO BE ENGAGED - idle time is not working time, not
employ workers who freely and voluntarily accepted their compensable
separation pay and other benefits. A change of ownership in
a business concern is not proscribed by law. WHEN TRAVEL TIME COMPENSABLE:
1. Travel from home to work- refers to ordinary work travel but
ART 83. NORMAL HOURS OF WORK where the worker is made to work on an emergency call and
- Shall not exceed 8 hours in a regular working day travel is necessary in proceeding to the workplace, the time
PURPOSE - to safeguard the health and welfare of the laborer spent on travel is compensable 2. Travel that is all in a day’s
and in a way to minimize unemployment by utilizing different work- time spent by an employee in travel as part of his principal
shifts activity, such as travel from jobsite to jobsite during the workday,
REGULAR WORKING DAYS: The regular working days of must be counted as hours worked.
covered employees shall not be more than five days in a 3. Travel away from home- travel that keeps an employee away
workweek. The workweek may begin at any hour and on any from home overnight.
day, including Saturday or Sunday, designated by the employer.
Work hours of seamen are governed by the same rules as
ART 84. HOURS WORKED land-based employees. Thus, they must show sufficient
➢ SHALL INCLUDE: proof that said work is performed.
1. All time during which an employee is required to be on duty Rest Periods of short duration during working hours shall
or to be at a prescribed workplace; and be considered as hours worked.
2. All time during which an employee is suffered or permitted to Preliminary activities compensable when controlled or
work required by employer and are pursued necessarily and
primarily for the employer’s benefit,
PRINCIPLES IN DETERMINING HOURS WORKED:
1. All hours are hours worked which the employee is required to ART 85. MEAL PERIODS
give to his employer, regardless of whether such hour is spent ➢ MEAL PERIODS
in productive labor or involve physical or mental exertion. 1. Should not be less than sixty (60) minutes, and is time-
2. An employee need not leave the premises of the workplace off/non-compensable
in order that his rest period shall not be counted, it being enough 2. Under specified cases, may be less than sixty (60) minutes,
that he stops working, may rest completely and may leave his but should not be less than twenty (20) minutes and must be
workplace, to go elsewhere whether within or outside the with full pay.
premises of his workplace. 3. If less than twenty (20) minutes, it becomes only a rest period
3. If the work performed was necessary, or it benefited the and is thus considered as work time
employer, or the employee could not abandon his work at the

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NOTE: Employee must be completely relieved from duty.

Otherwise, it is compensable as hours worked. RATIONALE - employee is given OT pay because he is made
to work longer than what is commensurate with his agreed
- Mealtime is not compensable EXCEPT in cases where the compensation for the statutorily fixed or voluntarily agreed hours
lunch period or mealtime is predominantly spent for the of labor he is supposed to do.
employer’s benefit or where it is less than 60 minutes. - As a rule, cannot be waived, as it is intended to benefit
- Employees may request that their meal period be shortened laborers and employees. But when the waiver is made in
so that they can leave work earlier that the previously consideration of benefits and privileges which may even
established schedule. exceed the overtime pay, the waiver may be permitted.
NOTE: OT pay will not preclude payment of night shift
REQUISITES: differential pay
1. The employees voluntarily agree in writing to a shortened
meal period and are willing to waive the overtime pay for such - Meal periods during overtime work is not given to workers
shortened meal period. performing overtime for the reason that OT work is usually for
2. No diminution whatsoever in the salary and other fringe a short period ranging from one to three hours and to deduct
benefits of the employees existing before the effectivity of the from the same one full hour as meal period would reduce to
shortened meal period. nothing the employee’s OT work.
3. Work does not involve strenuous physical exertion and they
are provided with adequate coffee breaks. WORKDAY - the 24-hour period which commences from the
4. The value of benefits is equal with the compensation due time the employee regularly starts to work. e.g., if the worker
them for the shortened meal period starts to work 8 am today, the workday is from 8am today up to
5. OT pay will become due and demandable after the new time 8 am tom.
schedule; and - The minimum normal working hours fixed by the Act need not
6. The arrangement is of temporary duration. be continuous to constitute the legal working day
- Express approval by a superior is not a prerequisite to
ART 86. NIGHT SHIFT DIFFERENTIAL make overtime work compensable. HOWEVER, written
➢ NIGHT SHIFT DIFFERENTIAL authority after office hours during rest days and holidays are
required for entitlement to compensation. - The right to OT pay
Additional compensation of not less than ten percent (10%) of
cannot be waived. Such waiver is contrary to law and public
an employee’s regular wage for every hour of work done
policy.
between 10:00 PM and 6:00 AM, whether this period is part of
the worker’s regular shift.
- If work done between 10 PM and 6 AM is overtime work, then EXCEPTIONS:
the 10%-night shift differential should be based on his 1. When the waiver stipulates higher payment or rate of OT pay;
overtime rate. or
2. Where the contract of employment requires work for more
RATIONALE than eight hours of work at specified wage per day providing for
a fixed hourly rate or that the daily wages include overtime pay.
- it serves as an inducement of employment

COMPRESSED WORKWEEK -allowable under the following

ART 87. OVERTIME WORK
conditions:
➢ OVERTIME PAY
1. It is voluntary on the part of the worker
Additional compensation for work performed beyond eight (8)
2. There will be no diminution of the weekly or monthly take-
hours within the worker’s 24-hour workday.
home pay and fringe benefits of the employees.
3. The value of the benefits that will accrue to the employees
30% of 130% if on a special holiday/rest day
under the proposed schedule is more than or at least
1. 25% of regular wage if done on a regular workday
commensurate with the one-hour OT pay that is due them during
2. 30% of 150% if on special holiday AND rest day
weekdays based on the employee’s quantification
3. 30% of 200% if on a regular holiday

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4. The one-hour OT pay will become due and payable if they are CHAPTER II
made or permitted to work on a day not scheduled for work on WEEKLY REST PERIOD
the compressed work week
5. The work does not involve strenuous physical exertion and ART 91. RIGHT TO A WEEKLY REST DAY
employees must have adequate rest periods - Employees should be provided a rest period of not less than
5. The arrangement is of temporary duration twenty-four (24) consecutive hours after every six (6)
consecutive normal workdays.
ART 88. UNDERTIME NOT OFFSET BY OVERTIME - Employer shall schedule the weekly rest day of his employees
Undertime work on any particular day shall not be offset by subject to collective bargaining agreement. However, the
overtime work on any other day. Permission given to the employer shall respect the preference of employees as to
employee to go on leave on some other day of the week shall their weekly rest day when such preference is based on
not exempt the employer from paying the additional religious grounds. But when such preference will prejudice the
compensation. operations of the undertaking and the employer cannot normally
result to other remedial measures, the employer may so
schedule the weekly rest day that meets the employee’s choice
RATIONALE
for at least two (2) days a month
- An employee’s regular pay rate is lower than the overtime rate.
Offsetting the undertime hours against the overtime hours would
ART 92. WHEN EMPLOYER MAY REQUIRE WORK ON A
result in undue deprivation of the employee’s extra pay for
REST DAY
overtime work.
➢ WHEN EMPLOYEE MAY BE REQUIRED TO
RENDER WORK ON A REST DAY:
ART 89. EMERGENCY OVERTIME WORK
1. In case of actual or impending emergencies caused by
➢ WHEN WORKER MAY BE REQUIRED TO RENDER
serious accident, fire, flood typhoon, earthquake epidemic or
OT:
other disaster or calamity, to prevent loss of life or property or in
(WNUNCN)
cases of force majeure or imminent danger to public safety
W 1. Country is at war, or any other national/local
2. urgent work to be performed on the machinery, equipment, or
emergency has been declared by the Chief
installation to avoid serious loss which the employer would
Executive/Congress
otherwise suffer
N 2. Necessary to prevent loss of life/property/ in case of
3. abnormal pressure of work due to special circumstances,
actual/impending emergency in the locality
where the employer cannot ordinarily be expected to resort to
U 3. There is urgent work to be performed on machines, other measures
installations, or equipment to avoid serious
4. prevent serious loss of perishable goods
loss/damage to the employer or some other causes of
5. nature of work requires continuous operation for seven days
similar nature
a week
N 4. Work is necessary to prevent loss/damage to
6. work is necessary to avail of favorable weather or
perishable goods; and
environmental conditions where performance or quality of work
C 5. where the completion or continuation of the work
depends upon them
started before the eighth hour is necessary to prevent
serious obstruction or prejudice to the business or
ART 93. COMPENSATION FOR REST DAY, SUNDAY, OR
operations of the employer.
HOLIDAY WORK
N 6. when it is necessary to avail of favorable weather or
- this article does not prohibit a stipulation in the CBA for higher
environmental conditions where performance or quality
benefits
of work is dependent thereon

SPECIAL HOLIDAYS
ART 90. REGULAR WAGE
1. All Saint’s Day - November 1
- include the cash wage only, without deduction on
account of facilities provided by the employer 2. Last Day of the Year- December 31
3. And all other days declared by law or ordinances to be a
special holiday or nonworking day

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NOTE: worked = regular wage plus 30% premium pay not 3. If there are two succeeding holidays eg., Maundy Thursday
worked = none and Good Friday, the employee must be present the day before
the scheduled regular holiday to be entitled to compensation to
ADDITIONAL COMPENSATION FOR WORK ON A REST both otherwise, he must work on the first holiday to be entitled
DAY, SUNDAY, OR HOLIDAY WORK: to holiday pay on the second regular holiday.
1. Work on a scheduled rest day - 30% of regular wage 2. No
regular workdays and rest days -30% of regular wage for work REGULAR HOLIDAY SPECIAL HOLIDAY
on Sundays & Holidays - compensable even - not - not compensable if
3. Work on Special Holidays -30% of regular wage compensable if unworked unworked
subject to certain conditions
4. Holiday Work falls on Scheduled Rest Day - 50% of regular
- limited to the 10 - not exclusive since law may
wage
enumerated by the LC provide for other special
holidays
CHAPTER III - rate is twice the regular rate - rate is 130% if worked
HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE if worked
CHARGES
ART 95. RIGHT TO SERVICE INCENTIVE LEAVE
ART 94. RIGHT TO HOLIDAY PAY ➢ SERVICE INCENTIVE LEAVE (SIL) - Five (5) days
HOLIDAY PAY - A day’s pay given by law to an employee even leave with pay for every employee who has rendered
if he does not work on a regular holiday. It is limited to the at least one (1) year of service
ten (10) regular holidays listed by law. ➢ BUT DOES NOT APPLY TO THOSE WHO ARE:
- employee should not have been absent without pay on the already enjoying the said benefits; or enjoying vacation leave
working day preceding the regular holiday. with pay for at least 5 days
Art. 94(b) refers to regular holidays, special holidays are taken those employed in establishments regularly employing less than
care of under Art. 93 10 employees
➢ PREMIUM PAY - Additional compensation for work those employed in establishments exempted from granting this
performed on a scheduled rest day or holiday. benefit by the Secretary of Labor.
REGULAR HOLIDAYS:
1. New Year’s Day - January 1 ONE (1) YEAR OF SERVICE. - service within 12 months,
2. Maundy Thursday - Movable date whether continuous or broken, reckoned from the date the
3. Good Friday- Movable date employee started working including authorized absences and
paid regular holidays unless the number of working day in the
4. Araw ng Kagitingan - April 9
establishment as a matter of practice or policy, or provided in
5. Labor Day - May 1
the employment contract is less than 12 mos.
6. Independence Day - June 12
- SIL is commutable i.e., convertible to cash- the cash
7. National Heroes Day`- Last Sunday of August
equivalent is aimed primarily at encouraging workers to
8. Bonifacio Day- November 30 work continuously and with dedication to the company.
9. Christmas Day- December 25
10. Rizal Day- December 30
ART 96. SERVICE CHARGES
Note: Compensable whether worked or unworked.
➢ TO BE DISTRIBUTED TWICE A MONTH AND AT
THE RATE OF:
DOUBLE HOLIDAY PAY 1. 85% for all covered employees to be equally distributed
1. 200% of the basic wage provided, he works on that day and among them
was present or on leave with pay on the preceding workday. If 2. 15% for management (may answer for losses and breakages
on leave without pay, rate still applies if leave is authorized. or distributed to management)
2. 400% if he worked – as per DOLE Memo if there are 2 regular
holidays in one day eg. April 9 and Good Friday. Provided the
- If collection of service charges is abolished, the share of
employee worked on the day prior to the regular holiday or on
covered employees shall be considered integrated in their
leave with pay or on authorized absence.

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wages based on the average monthly share of each employee ➢ This Title shall not apply to the following:
for the past 12 months immediately preceding the abolition. 1. household or domestic helpers
2. homeworkers engaged in needlework
TITLE II 3. workers employed in any establishment duly registered with
WAGES the National Cottage Industry
4. Workers in any duly registered cooperatives
CHAPTER I
PRELIMINARY MATTERS CHAPTER II
MINIMUM WAGE RATES
ART 97. DEFINITION
WAGE - the remuneration or earnings, however designated, ART 100. PROHIBITION AGAINST ELIMINATION OR
capable of being expressed in terms of money, whether fixed or DIMUNITION OF BENEFITS
ascertained on a time, task, piece, or commission basis or other ➢ LEGAL REQ’TS. BEFORE FACILITIES CAN BE
method of calculating the same, which is payable by an DEDUCTED FROM THE EMPLOYEES’ WAGES:
employer to an employee under a written or unwritten contract 1. Proof that such facilities are customarily furnished by the
of employment for work done or to be done or for services trade.
rendered or to be rendered and includes the fair and reasonable 2. Voluntarily Accepted in writing by the employee
value of board, lodging, or other facilities customarily furnished 3. Charged at Fair & Reasonable Value
by the employer to the employee.
THE NON-DIMINUTION RULE - the benefits being given to
employees cannot be taken back or reduced unilaterally by
FAIR DAY’S WAGE FOR A FAIR DAY’S LABOR - if there is
the employer because the benefit has become part of the
no work performed by the employee, there can be no wage or
employment contract, written or unwritten.
pay unless the laborer was able, willing, and ready to work but
was prevented by management or was illegally locked out,
The rule is applicable if it is shown that the grant of the
suspended, or dismissed.
benefit is:
1. based on an express policy, or
WAGE SALARY
2. has ripened into practice over a long period of time, and
- compensation for manual - denotes higher degree of
the practice is consistent and deliberate.
labor employment
3. It is not due to an error in the construction /application of
- Not subject to execution - subject to execution (Gaa
vs. CA) a doubtful or difficult question of law.

- But even in cases of error, it should be shown that the

FACILITIES – shall include all articles or services for the benefit
correction is being done soon after the discovery of the
of the employee or his family but shall not include tools of the error.
trade or articles or services primarily for the benefit of the
employer or necessary to the conduct of the employer’s BONUS - A supplement or employment benefit given under
business. certain conditions, such as success of the business or
greater production or output. As a rule, it is an amount
granted voluntarily to an employee for his industry and
FACILITIES SUPPLEMENTS loyalty which contributed to the success and realization of
- Are items of expense - Constitute extra profits of the employer’s business. Therefore, from a legal
necessary for the laborers remuneration or special point of view, it is not a demandable and enforceable
and his family’s existence privileges or benefits given to obligation. Unless it was promised to be given without any
and subsistence or received by the laborers conditions imposed for its payment, as such, it is deemed
over and above their ordinary part of the wage.
earnings wages
- part of the wage - independent of the wage 13TH MONTH PAY (OR “ITS EQUIVALENT”) -additional
- deductible from the wage - not wage deductible income based on wage required by P.D. 851 which is
equivalent to 1/12 of the total basic salary earned by an
ART. 98. APPLICATION OF TITLE employee within a calendar year.

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- may be given anytime but not later than Dec. 24 ➢ EMPLOYER CANNOT PAY HIS WORKERS BY
MEANS OF:
COVERAGE: - All rank-and-file employees regardless of 1. promissory notes
their designation or employment status and irrespective of 2. vouchers
the method by which their wages are paid, are entitled to 3. coupons
this benefit, provided, that they have worked for at least 4. tokens
one (1) month during the calendar year 5. tickets
6. chits
FORMS: 7. or any object.
1. Christmas bonus
2. midyear bonus GENERAL RULE:
3. profit sharing payments; and - payment by legal tender
4. other cash bonuses amounting to not less than 1/12 of
its basic salary EXCEPTIONS:
- checks or money orders may be paid if:
- Difference of opinion on how to compute the 13th month
pay does not justify a strike 1. the same is customary on the date of effectivity of the LC.
- It must always be in the form of legal tender. Free rice, 2. necessary because of special circumstances; or
electricity cash and stock dividends, COLA not equivalent 3. as stipulated in the CBA

ART 101. PAYMENT BY RESULTS ART 103. TIME OF PAYMENT

➢ CATEGORIES OF PIECE-RATE WORKERS: ➢ WHEN TO PAY: - at least once every two (2) weeks or
1. those who are paid piece rates as prescribed in Piece Rate twice a month at intervals not exceeding sixteen (16)
Orders by the DOLE days
2. Those who are paid output rates which are prescribed by the - force majeure or other circumstances beyond
employer and are not yet approved by the DOLE the employer’s control, payment must be made
immediately after such occurrence have ceased
WORKERS PAID ON PIECE-RATE BASIS - shall refer to those
who are paid a standard amount for every piece or unit of work ART.104. PLACE OF PAYMENT
produced that is regularly replicated, without regard to the time ➢ WHERE TO PAY: - Shall be made at or near the place
spent in producing the same. of undertaking,
EXCEPTIONS:
BENEFITS PAYABLE TO PIECE-RATE WORKERS: 1. When payment cannot be effected at or near the place of work
1. Applicable statutory minimum daily rate. by reason of deterioration of peace and security
2. Yearly service incentive leave of five days with pay. 2. When the employer provides for free transportation to the
3. Night shift differential pay employees back and forth.
4. Holiday pay 3. And under analogous circumstances
5. Meal and rest periods - payment of wages in bars, night or day clubs, massage
6. OT pay (conditional) clinics or similar establishments are prohibited except
7. Premium pay (conditional) for the workers therein.
8. 13th month pay
9. other benefits granted by law, individual or collective PAYMENT THRU BANKS:
bargaining agreement or company policy or practice.
REQUISITES:
CHAPTER III 1. There must be written permission of most of the employees
PAYMENT OF WAGES concerned in an establishment.
2. The establishment must have 25 or more employees; and
ART 102. FORMS OF PAYMENT 3. The bank must be located within one kilometer radius to the
bank from the location of the establishment

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3. the agreement between the principal and contractor or

- payment through the ATM is allowed subcontractor assures the contractual employees’ entitlement to
all labor and occupational safety and health standards, free
ART 105. DIRECT PAYMENT OF WAGES exercise of the right to self-organization, security of tenure and
➢ TO WHOM PAID social and welfare benefits.
- wages shall be paid directly to the workers to whom they are
due. - Substantial capital need not be coupled with
investment in tools or equipment. This is clear from the
EXCEPTIONS: use of the conjunction “or”.
a. in case of force majeure/special circumstances,
payment may be made through another person under written JOB CONTRACTING LABOR ONLY
authority where the worker has died, the CONTRACTING
b. employer may pay the wages of the deceased worker 1. No E- E relationship exist 1. Employer is treated as
to the heirs of the latter, through the Secretary of Labor or his between employer and the direct employer of the person
contractor’s employee recruited in all instances
representative, without the necessity of intestate proceedings,
except when the contractor
after the heirs have executed an affidavit attesting to their or subcontractor fails to pay
relationship to the deceased and the fact that they are his heirs the wages of his employees
to the exclusion of all others 2. liability is limited to unpaid 2. liable to all rights duties
wages and other labor and liabilities under labor
ART 106. CONTRACTOR OR SUBCONTRACTOR standards violations standards laws including the
LABOR ONLY CONTRACTING - where the person supplying right to self- organization
3. Permissible 3. Prohibited by law
workers to an employer does not have substantial capital or
4. Contractor has substantial 4. Contractor has no
investment in the form of tools, equipment, machineries, work capital or investment substantial capital/
premises, among others, and the workers recruited and placed investment
by such persons are performing activities which are directly
related to the principal business of such employer. WORKING CONDITIONS - Refers to the terms and
circumstances affecting the employment of an employee,
LABOR ONLY CONTRACTING - where the person supplying including policies, programs and regulations governing his
workers to an employer does not have substantial capital or employment status, work, and work relationships. They are, as
investment in the form of tools, equipment, machineries, work a rule, determined by the employer.
premises, among others, and the workers recruited and placed
by such persons are performing activities which are directly ART. 110. WORKER PREFERENCE IN CASE OF
related to the principal business of such employer. BANKRUPTCY
- A mere statement in a contract with a company that - This Article did not sweep away the overriding preference
laborers who are paid according to the amount and accorded under the scheme of the Civil Code to tax claims of
quality of work are independent contractors does not the government.
change their status as mere employees in - just a preference, must yield to special preferred credit, e.g.
contemplation of labor laws. secured creditors
- The formal declaration of insolvency or bankruptcy or a
REQUISITES FOR A CONTRACTING OR judicial liquidation of the employer’s business is a condition
SUBCONTRACTING TO BE: sine qua non to the operation of the preference accorded to
1. where the contractor or subcontractor carries on a distinct and workers under Art. 110.
independent business and undertakes to perform the job on his
own account and under his own responsibility, according to its CHAPTER IV
own manner and method and free from the control and direction PROHIBITIONS REGARDING WAGES
of the principal in all matters connected with the performance of
the work except as to the results thereof. ART 112. NON-INTERFERENCE IN DISPOSAL OF WAGES
2. the contractor or subcontractor has substantial capital or In relation to the Civil Code:
investment; and

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Art. 1705. The laborer’s wages shall be paid in legal currency. - Deposits for Loss or Damage to tools, materials and
Art. 1706. Withholding of the wages except for a debt due, shall equipment supplied by the employer shall not be made,
not be made by the employer EXCEPT when the trade, occupation or businesses of the
Art. 1707. The laborer’s wages shall be a lien on the goods employer recognizes, or considers the practice of making
manufactured or the work done. deductions or requiring deposits necessary or desirable.
Art. 1708. The laborer’s wages shall not be subject to execution
or attachment except for debts incurred for food, shelter, REQUISITES FOR DEDUCTION FOR LOSS OR DAMAGE:
clothing, and medical attendance. 1. employee clearly shown responsible
Art. 1709. The employer shall neither seize nor retain any tool 2. opportunity to show cause to show why deduction should not
or other articles belonging to the laborer. be made
3. deduction is fair and reasonable and shall not exceed the
PROHIBITIONS REGARDING WAGES: actual loss or damage
1. Payment of wages with less frequency than once (1) a month. 4. does not exceed 20% of the employees’ wages in a week.
2. Limitations/Interference by the employer with the employee’s
freedom to dispose of his wages. CHAPTER V
3. Forcing, Compelling/Obliging employees to purchase WAGE STUDIES, WAGE AGREEMENTS AND WAGE
merchandise, commodities, or other properties from the DETERMINATION
employer or from any other person, or to make use of any store
or service of such employer or any other person ART 122. CREATION OF THE REGIONAL TRIPARTITE
4. Withholding of wages WAGES AND PRODUCTIVITY BOARDS
5. Deduction of wages as consideration of a promise of ➢ WHO MAY SET MINIMUM WAGE:
employment or retention in employment 1. Regional Tripartite Wages and Productivity Board
6. Refusal to pay/ Reduction of wages and benefits, discharge/ 2. Congress
discrimination against any employee as retaliatory measures
against any employee who has filed any complaint or instituted MINIMUM WAGE - The lowest wage rate fixed by law that an
any proceedings against his employer employer can pay his employees.

ART 113. WAGE DEDUCTION ART. 123 WAGE ORDER

➢ ALLOWABLE DEDUCTIONS: WAGE ORDER – an order issued by the Regional Board
WITH EMPLOYEES CONSENT: whenever the conditions in the region so warrant after
1. SSS Payments investigating and studying all pertinent facts and based on the
2. MEDICARE standards and criteria prescribed by the LC, the Regional Board
3. Contributions to PAG-IBIG Funds proceeds to determine whether to issue the same or not.
4. value of meals and others EFFECTIVITY of a wage Order – it shall take effect after 15
5. payments to third persons with employees’ consent days from its complete publication in at least one newspaper of
6. deduction of absences general circulation in the region.
FREQUENCY of a wage order - Wage Order issued by the
W/OUT EMPLOYEES CONSENT: Board may not be disturbed for a period of 12 months from its
1. Worker’s insurance acquired by the employer effectivity and no petition for wage increase shall be entertained
2. Union Dues, where the right to check-off has been recognized during said period. EXCEPTION: When Congress itself issues
by the employer a law increasing wages.
3. Cases where the employer is authorized by law or regulations
issued by the Secretary of Labor ART 124. STANDARDS/CRITERIA FOR MINIMUM WAGE
4. debts of the employee to the employer which have become FIXING
due and demandable ➢ FACTORS FOR DETERMINING REGIONAL
MINIMUM WAGE RATES (DACNNIPFEE)
ART 114. DEPOSITS FOR LOSS OR DAMAGE 1. Demand for living wages.

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2. Wage Adjustment vis-a vis the consumer price index; 3. Cost While that is the aim, it need not necessarily be restored
of living and changes or increases therein. to the last peso. An appreciable differential, a significant
4. Needs of workers and their families. pay gap should suffice as correction of the distortion.
5. Need to induce industries to invest in the countryside.
6. Improvements in standards of living. CHAPTER VII
7. Prevailing wage levels. ADMINISTRATION AND ENFORCEMENT
8. Fair Return of the capital invested and capacity to pay of
employers. ART. 128. VISITORIAL AND ENFORCEMENT POWER
9. Effects on Employment Generation and Family Income. ART. 129. RECOVERY OF WAGES, SIMPLE MONEY
10. Equitable Distribution of Income & Wealth along the CLAIMS AND OTHER BENEFITS
imperatives of economic and social development - Under Art. 129, the Regional Director is empowered
through summary proceeding and after due notice, to hear
WAGE DISTORTION - situation where an increase in and decide cases involving recovery of wages and other
prescribed wage rates results in the elimination or severe monetary claims and benefits, including legal interests.
contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an REQUISITES:
establishment as to effectively obliterate the distinctions 1. The claim is presented by an employee or person employed
embodied in such wage structure based on skills, length of in domestic or household service or house helper.
service or other logical bases of differentiation. 2. The claim arises from employer-employee relations.
3. The claimant does not seek reinstatement; and
CORRECTING WAGE DISTORTION 4. The aggregate money claim of each employee or house
Unionized Establishment helper does not exceed P5, 000.00
1. Negotiate to correct the distortion.
2. Any dispute arising therefrom should be resolved through - Access to employer’s records and premises
grievance procedure under their CBA. → the day/night whenever work is being undertaken
3. If the dispute remains unresolved, through voluntary therein
arbitration. → includes the right to copy therefrom, to question
any employee & investigate any fact, condition or
Establishments without Unions matter which may be necessary to determine
1. The employers and workers shall endeavor to correct the violations, or which may aid in the enforcement of the
distortion. Code and of any labor law, wage order, or rules and
2. Any dispute arising therefrom shall be settled through the regulations
NCMB and
3. If it remains unresolved after 10 days of conciliation, it shall Issue Compliance Orders (ART. 128)
be referred to the NLRC. →based on the findings of labor employment and
enforcement officers or industrial safety engineers
- Wage distortion is non- strikable. made during inspection

Is the employer legally obliged to try & correct a wage Issue Writs of Execution (ART. 128)
distortion? →for the enforcement of orders
It appears so. Article 124 of the Code provides that “the →except in cases where the employer contests the
employer and the union shall negotiate to correct the findings of the said labor officers and raises issues
distortions.” If there is no union, “the employer and the supported by documentary proofs which were not
workers shall endeavor to correct such distortions. considered during inspection.
Must the previous pay gaps be restored? Order Work Stoppage/Suspension of Operations

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→ when non-compliance with the law or implementing 3. Agricultural undertaking at nighttime unless, she is given a
rules and regulations poses grave & imminent danger to period of rest of not less than 9 consecutive hours
the health and safety of the workers in the workplace.
Conduct Hearings within 24 hours ART 131. EXCEPTION
→ to determine whether an order for stoppage of 1. Actual/Impending Emergencies caused by serious
work/suspension of operations shall be lifted or not. accident, flood, typhoon, epidemic or other disasters or
→ employer shall pay the employees concerned their calamity, to prevent loss of life or property, or in cases of force
salaries in case the violation is attributable to his fault majeure or imminent danger to public safety
Require employers to keep and maintain Employment 2. Urgent work to be performed on machineries, equipment,
Records or installation, to avoid serious loss
→ as may be necessary in aid of his visitorial and 3. Work is necessary to prevent serious loss of perishable
enforcement powers goods
ART 128 ART 129 4. Where she holds a responsible position of
1. Visitorial and enforcement 1. Power of the Regional managerial/technical nature/engaged to provide health and
power of the Secretary of Director or any duly welfare service
Labor /his duly authorized authorized hearing officers to 5. Nature of the work requires the manual skill and dexterity
representatives exercised hear and decide matters
of women workers & cannot be performed with equal
through routine inspections involving the recovery of
of establishments wages, upon complaint of efficiency by male workers
any interested party 6. Where women workers are immediate family members of
2. requires the existence of 2. E-E relationship not the family operating the establishment or undertaking
E-E Relationship necessary since it should not 7. Analogous cases
include a claim for
reinstatement
ART 132. FACILITIES FOR WOMEN
3. No limit as to amount of 3. Aggregate claim of each
claim complainant does not The Secretary of Labor may require employers to:
exceed P5,000 1. Provide seats proper for women and permit them to use the
4. Appeal is with Sec.of 4. Appeal with NLRC; period seats when they are free from work or during office hours
Labor; period of appeal is 10 of appeal is 5 calendar days provided the quality of the work will not be compromised.
calendar days 2. To establish separate toilet rooms and lavatories for men
5. Person exercising the 5. The power is vested upon and women and provide at least a dressing room for women.
power is the Sec. Of Labor or a regional director or any
any of his duly authorized duly authorized hearing 3. To establish a nursery in the establishment.
representatives who may or officer of the DOLE 4. To determine appropriate minimum age and other
may not be a regional standards for retirement or termination in special occupations
director such as those of flight attendants and the like

TITLE III ART. 133 MATERNITY LEAVE BENEFITS

WORKING CONDITIONS FOR SPECIAL GROUP OF ➢ MATERNITY LEAVE UNDER THE SSS LAW
EMPLOYEES A female member, who need not be legally married, who has
paid for at least three (3) monthly contributions in the 12-
CHAPTER I month period immediately preceding the semester of her
EMPLOYMENT OF WOMEN childbirth or miscarriage shall be paid a daily maternity benefit
equivalent to 100% of her average daily salary credit for 60 days
ART 130. NIGHTWORK PROHIBITION or 78 days, in case of caesarian delivery.
- No woman, regardless of age, shall be employed or
permitted or suffered to work, with or without compensation in REQUISITES:
any: 1. Employee notified her employer of her pregnancy of the
1. Industrial undertaking between 10PM-6AM probable date of her childbirth
2. Commercial/Non-Industrial undertaking between 12 MN- 2. Full payment be advanced by the employer within 30 days
6AM from the filing of the maternity leave application

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3. That payment of daily maternity benefits shall be a bar to the WIFE - refers to the lawful wife which means the woman who is
recovery of sickness benefits legally married to the male employee concerned.
4. That the maternity benefits shall be paid only for the first four
(4) deliveries or miscarriages - Where the male employee is already enjoying the paternity
5. That the SSS shall immediately reimburse the employer of leave by reason of any law, decree, executive orders or any
100% of the amount of maternity benefits advanced to the contract, agreement or policy between employer and employee
employee by the employer and the existing paternity benefit is greater, the greater benefit
6. That if an employee member should give birth or suffer a shall prevail; if lesser, the existing benefit shall be adjusted
miscarriage without the required contributions having been to the extent of the difference.
remitted for her by her employer to the SSS, or without the latter
having been previously notified by the employer of the time of ART 135. DISCRIMINATION PROHIBITED
the pregnancy, the employer shall pay to the SSS damages - It shall be unlawful for any employer to discriminate against
equivalent to the benefits which said employee member would any woman employee with respect to terms and conditions of
otherwise have been entitled to. employment solely on account of her sex.
- ART 133 (b) subsists, i.e., the maternity leave shall be ➢ Acts of Discrimination:
extended without pay on account of illness medically certified to a. Payment of a lesser compensation for work of equal value.
arise out of the pregnancy, delivery, abortion, or miscarriage, b. Favoring a male employee over a female employee solely
which renders the woman unfit for work, unless she has earned on the account of their sexes.
unused leave credits from which such extended leave may be
charged.
Sexual Harassment in a Work-Related or Employment
Environment:
LIMIT OF THE BENEFIT: Applies only for the first four deliveries 1. the sexual favor is made as a condition in the hiring or in
irrespective of who is the father of the children and may not be the employment, re-employment, or continued employment
availed of in addition to sickness benefit under the Social of said individual or in granting said individual favorable
Security program. compensation, terms, conditions, promotions, or privileges;
or the refusal to grant the sexual favor results in limiting,
RA 8187 (PATERNITY LEAVE) segregating or classifying the employee which in anyway
This law grants paternity leaves of seven day with full pay to would discriminate, deprive or diminish employment
all married male employees in the private and public sectors. opportunities or otherwise adversely affect said employee
- It is available only for the first four deliveries of the 2. the above acts would impair the employee’s rights or
legitimate spouse with whom the husband is cohabiting. privileges under existing labor laws or
3. The above acts would result in an intimidating, hostile, or
DELIVERY – includes childbirth, miscarriage, or abortion. offensive environment (Sec. 3[a], RA No. 7877)

Purpose: to enable the husband to lend support to his wife ART 136. STIPULATION AGAINST MARRIAGE
during the period of recovery and/or in the nursing of the newly it shall be unlawful for an employer to require as a condition for
born child. employment or continuation of employment that a woman
employee shall not get married, or to stipulate expressly or
CONDITIONS: tacitly that upon getting married a woman employee shall be
1. he is an employee at the time of the delivery of his child. deemed resigned or separated, or to actually dismiss,
2. he is cohabiting with his spouse at the time she gives birth or discharge, discriminate or otherwise prejudice a woman
suffers a miscarriage. employee merely by reason of her marriage.
3. he has applied for paternity leave; and
4. his wife has given birth or suffered a miscarriage ART 138. CLASSIFICATION OF CERTAIN WOMEN
WORKERS
- Paternity leave, if not availed of, is not convertible to cash. Any woman who is permitted to work or suffered to work, with or
without compensation, in any night club, cocktail lounge,
massage clinic, bar or similar establishment, under the effective

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control or supervision of the employer for a substantial period as 4. Where the workers use or are exposed to heavy or power-
determined by the Secretary of Labor, shall be considered as an driven machinery or equipment; and
employee of such establishment for purposes of labor and social 5. Where the workers use or are exposed to power-driven tools,
legislation.
CHAPTER III
CHAPTER II EMPLOYMENT OF HOUSEHELPERS
EMPLOYMENT OF MINORS
RIGHTS OF HOUSEHELPERS:
ART 139. MINIMUM EMPLOYABLE AGE 1. minimum cash wage
Any person between ages 15 and 18 may be employed in any 2. non-assignment to non- household work
non-hazardous work. 3. opportunity for education: if under 18 (cause of education part
of compensation)
Exception and condition on the employment of a child 4. board/ lodging, medical attendance
below 15: 5. just and humane treatment
1. When the child works directly under the sole responsibility of 6. indemnity for unjust termination of services
his/her parents or legal guardian who employs members of 7. just causes for termination
his/her family only under the following conditions: 8. right not to be required to work more than 10 hours a day
a. employment does not endanger the child’s life, safety, 9. for days’ vacation each month
health, and morals 10. to regular wages if employed in industrial or commercial or
b. employment does not impair the child’s normal agricultural undertaking
development 11. funeral expenses must be paid by employer if the house
c. the parent/legal guardian provides the child with the helper has no relatives with sufficient means in the place where
primary and/or secondary education prescribed by the head of the family lives.
DECS 12. at least elementary education
2. Where the child’s employment or participation in public 13. employment certification
entertainment or information through cinema, theater, radio, or
television is essential, provided that: CHAPTER IV
a. employment does not involve advertisements or EMPLOYMENT OF HOMEWORKERS
commercials promoting alcoholic beverages, intoxicating
drinks, tobacco, and its by-products or exhibiting INDUSTRIAL HOMEWORK - a system of production under
violence. which work for an employer or contractor is carried out by a
b. There is a written contract approved by the DOLE; and homeworker at his home.
c. The conditions prescribed for the employment of INDUSTRIAL HOMEWORKER - a worker who is engaged in
minors {above stated} are met. industrial homework

NONHAZARDOUS WORK OR UNDERTAKING – one where BOOK FOUR

the employee is not exposed to any risk which constitutes an HEALTH, SAFETY AND SOCIAL
imminent danger to his safety and health. WELFARE BENEFITS

HAZARDOUS WORKPLACES: TITLE I

1. Where the nature of the work exposes the workers to MEDICAL, DENTAL AND
dangerous environmental elements, contaminants, or work OCCUPATIONAL SAFETY
conditions.
2. Where the workers are engaged in construction work, logging, CHAPTER I
firefighting, mining, quarrying, blasting, stevedoring, dock work, MEDICAL AND DENTAL SERVICES
deep-sea fishing, and mechanized farming.
3. Where the workers are engaged in the manufacture or ART 156. FIRST-AID TREATMENT
handling of explosives and other pyrotechnic products. FIRST-AID TREATMENT – adequate, immediate, and
necessary medical and dental attention or remedy given in case

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of injury or illness suffered by a worker during employment,

irrespective of whether such injury or illness is work-connected, SICKNESS - Any illness accepted as an occupational disease
before a more extensive medical and/or dental treatment can be listed by the Commission, or any illness caused by employment
secured. subject to proof that the risk of contracting the same is increased
by working conditions.
FIRST AIDER – any person trained and duly certified as
qualified to administer first aid by the Phil. National Red Cross Conditions for an occupational disease and the resulting
or by any other organization accredited by the former. disability or death to be compensable:
1. The employee’s work must involve the risk described therein
TITLE II 2. The disease was contracted because of the employee’s
EMPLOYEES’ COMPENSATION AND exposure to the described risks.
STATE INSURANCE FUND 3. The disease was contracted within a period of exposure and
under such other factors necessary to contract it.
WORKMEN’S COMPENSATON- A general and 4. There was no notorious negligence on the part of the
comprehensive term applied to those laws providing for employee
compensation for loss resulting from the injury, disablement, or
death of a workman through industrial accident, casualty, or DEATH - Loss of life resulting from injury or sickness
disease. DISABILITY - Loss or impairment of a physical or mental
COMPENSATION - Money relief afforded according to the scale function resulting from injury or sickness.
established under the statute as differentiated from DIRECT PREMISES RULE – as a rule, the accident should
compensatory damages recoverable in an action at law for have occurred at the place of work to be compensable
breach of contract or for tort.
EXCEPTIONS TO THE DIRECT PREMISES RULE
WORKMEN’S EMPLOYEES 1. INGRESS- EGRESS/ PROXIMITY RULE when the employer
COMPENSATION ACT COMPENSATION LAW is about to leave or about to enter the premises of the employer
1. There is a presumption of 1. no presumption of by way of the customary or exclusive means of ingress or
compensability compensability egress.
2. there is a presumption of 2. no presumption of
2. GOING TO OR COMING FROM WORK when the injury
aggravation aggravation
3. there is a need for the 3. no need for the employer occurred when the employee is proceeding to or from his work
employer to controvert the to controvert on the premises of the employer
claim within 14 days →must be a continuing act and has not diverted therefrom
otherwise he is deemed to by any other activity and he has not departed from his
have waived the right usual route to or from his workplace and if the employee
4. payment of compensation 4. payment of compensation is on a special errand, it must have been official and in
made by the employer made by SSS/GSIS through
connection with his work
the State Insurance Fund
3. EXTRA-PREMISES RULE – (or the shuttle bus rule) where
the company provides the means of transportation in going to or
ART 164. DEFINITION OF TERMS.
coming from the place of work is liable to the injury sustained by
INJURY - Any harmful change in the human organism from any
accident arising out of and in the course of employment. the employees while on board said means of transportation.
4. SPECIAL ERRAND RULE – injury sustained outside the
GROUNDS FOR AN INJURY TO BE COMPENSABLE company premises is compensable if his being out is covered
1. the employee must have been injured at the place where the by an office order or a locator slip or a pass for official business.
work requires him to be 5. DUAL PURPOSE DOCTRINE – allows compensation where
2. the employee must have been performing his official functions a special trip would have to be made for the employer if the
3. if the injury is sustained elsewhere, the employee must have employee had not combined the service for the employer with
been executing an order for the employer his own going or coming trip.
4. the injury was not due to the employee’s intoxication, willful 6. SPECIAL ENGAGEMENT RULE – covers field trips, outings,
intention to injure or kill himself or another, notorious negligence intramurals, and picnics when initiated or sanctioned by the
or otherwise prohibited under this Title. employer

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7. POSITIONAL AND LOCAL RISKS DOCTRINE – If an once the election is made, the claimant cannot opt for the other
employee by reason of his duties is exposed to a special or remedy.
peculiar danger from the elements, that is, one greater than that - Simultaneous recovery under the LC and the SSS can be
to which other persons in the community are exposed and an made as per an advisory opinion dated May 23, 1989, of Sec.
unexpected injury occurs, the injury is compensable Drilon since PD 1921 has lifted the ban on simultaneous
8. FORCE MAJEURE OR AN ACT OF GOD - when one in the recovery.
course of his employment is reasonably required to be at a
particular place at a particular time and there meets an accident STATE INSURANCE FUND: all covered employers are
although one which any other person then and there present required to remit to a common fund a monthly contribution
would have met irrespective of his employment. equivalent to one percent of the monthly salary credit of every
covered employee. The employee pays no contribution to the
CHAPTER II fund. Any agreement to the contrary is prohibited.
COVERAGE AND LIABILITY
CHAPTER VI
ART 168. COMPULSORY COVERAGE DISABILITY BENEFITS
- ECL applies to all employers, public or private, and to all
employees, public or private including casual, emergency, DISABILITY CATEGORIES:
temporary, or substitute employees. TEMPORARY TOTAL - if because of the injury or sickness, the
- Every employee is covered who is not over 60 years over 60 employee is unable to perform any gainful occupation for a
years of age or over 60 years of age if he had been paying continuous period not exceeding 120 days
contributions prior to the age of 60 PERMANENT TOTAL - if because of the injury or sickness, the
employee is unable to perform any gainful occupation for a
ART 170. EFFECTIVE DATE OF COVERAGE continuous period exceeding 120 days
The employer is covered compulsorily from first day of operation PERMANENT PARTIAL - if because of the injury or sickness,
and the employee from the first day of employment the employee suffers a permanent partial loss of the use of any
part of his body.
ART 172. LIMITATIONS OF LIABILITY DEATH BENEFITS - The System shall pay to the primary
NO COMPENSATION can be obtained if the injury, death, or beneficiaries upon the death of the covered employee an
disability is a result of the employee’s: amount equal to his monthly income benefit, plus ten percent
1. Intoxication. thereof for each dependent child, but not exceeding five,
2. Willful intention to injure or kill himself or another. beginning with the youngest and without substitution. The
3. Notorious negligence; or income benefit shall be guaranteed for five years.
4. Unless otherwise provided by the LC
DEPENDENTS:
NOTORIOUS NEGLIGENCE – deliberate act of the employee 1. the legitimate, legitimated, legally adopted or acknowledged
to disregard his own personal safety. natural child who is unmarried, not gainfully employed and not
over 21 years of age or over 21 years of age if he is incapable
Is death through suicide compensable? As a rule, NO. of self-support due to a physical or mental defect which is
However as held in NAESS vs. NLRC, the supreme court congenital or acquired during minority
ruled that a self-inflicted death could be compensable if: 2. legitimate spouse living with the employee
1. by agreement of the parties 3. the parents of said employee wholly dependent upon him for
2. The suicide/death is caused by a work related or regular support
compensable illness or disease.
BENEFITS
ART 173. EXTENT OF LIABILITY 1. for life to the primary beneficiaries, guaranteed for five years
- Simultaneous recovery under the Labor Code and the Civil 2. for not more than 60 months to the secondary beneficiaries in
Code cannot be made. The action is selective, and the case there are no primary beneficiaries
employee may either choose to file the claim under either. But 3. in no case shall the total benefit be less that P 15, 000.00

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THE BENEFICIARIES ARE:

PRIMARY BENEFICIARIES EMPLOYEE- shall not be limited to the employees of a
a. Dependent spouse until he remarries particular employer.
b. dependent children (legitimate, legitimated, natural born or
legally adopted) - it shall include any individual whose work has ceased:
because of or in connection with any current labor dispute;
SECONDARY BENEFICIARIES or because of unfair labor practice
a. Illegitimate children and legitimate descendants
b. parents, grandparents, grandchildren - If he has not obtained any other:
1. Substantially equivalent and
BOOK FIVE 2. Permanent employment
LABOR RELATIONS

TITLE I
POLICY AND DEFINITIONS

ART 211. DECLARATION OF POLICY

LABOR RELATIONS LAW - Concerned with the stabilization of
relations of employer and employees and seeks to forestall and
adjust grievances through - the encouragement of collective
bargaining and the settlement of labor disputes through
conciliation, mediation, and arbitration.
- Absent an employer-employee relation, there is no labor
relations to speak of.

PARTIES TO LABOR RELATIONS CASES:

1. The employee’s organization,
2. management, and
3. the public

- The public is always to be considered in disputes between

labor and capital, and it as has been held that the rights of the
public are paramount.
- Labor relations policy under the LC is embodied in Section
3 Article XIII of the 1987 Constitution which guarantees to all
workers their right among others to self-organization, collective
bargaining and negotiations, peaceful land concerted activities
including the right to strike in accordance with law, and to
participate in policy and decision-making processes affecting
their rights and benefits as may be provided by law

ART. 212. DEFINITIONS

➢ LABOR DISPUTE INCLUDES:
1. any controversy or matter concerning terms or conditions of
employment or
2. the association or representation of persons in negotiating,
fixing, maintaining, charging, or arranging the terms and
conditions of employment, regardless of whether the disputants
stand in the proximate relation of employer and employee.

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