Labor Law || A2015

1. WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS

A. WOMEN Arts. 133-138; Omnibus Rules, Book III, Rule XII; Women in Development and Nation Building Act, R.A. 7192 (1992), and Anti-Sexual
Harassment Act of 1995, RA 7877; The Magna Carta of Women, RA 9710 (2009); RA 10151 (An Act Allowing the Employment of Night Workers), June 21,
2011, repealed Arts. 130-131, Labor Code
1. Women under the Constitution Art. II, Sec. 14; Art. XIII, Sec. 14
CONSTITUTION: Art. II, Sec. 14
Sec. 14. The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men.

CONSTITUTION: Art. XIII, Sec. 14

Sec. 14. The State shall protect working women by providing safe and healthful working conditions, taking into account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation.

2. Coverage Omnibus Rules, Book III, Rule XII, Sec. 1

Omnibus Rules, Book III, Rule XII, Sec. 1
Sec. 1. General statement on coverage. This Rule shall apply to all employers, whether operating for profit or not, including educational, religious and charitable
institutions, except to the Government and to government-owned or controlled corporations and to employers of household helpers and persons in their personal service
insofar as such workers are concerned.

3. Equal treatment before the Law RA 9710, Secs. 2 (par. 1) & 12; Const. Art. II, Sec. 14 (supra)
R.A. 9710: Sec. 2 (par. 1) & 12
Sec. 2, par 1. Recognizing that the economic, political, and sociocultural realities affect women's current condition, the State affirms the role of women in nation building
and ensures the substantive equality of women and men. It shall promote empowerment of women and pursue equal opportunities for women and men and ensure equal
access to resources and to development results and outcome. Further, the State realizes that equality of men and women entails the abolition of the unequal structures
and practices that perpetuate discrimination and inequality. To realize this, the State shall endeavor to develop plans, policies, programs, measures, and mechanisms to
address discrimination and inequality in the economic, political, social, and cultural life of women and men.
Sec. 12. Equal Treatment Before the Law. - The State shall take steps to review and, when necessary, amend and/or repeal existing laws that are discriminatory to women
within three (3) years from the effectivity of this Act.

4. Night Work RA 10151; Labor Code 154 & 158 see RA 10151
R.A. 10151
AN ACT ALLOWING THE EMPLOYMENT OF NIGHT WORKERS, THEREBY REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL DECREE NUMBER FOUR HUNDRED FORTY-
TWO, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Article 130 of the Labor Code is hereby repealed.
SEC. 2. Article 131 of the Labor Code is hereby repealed.
SEC. 3. The subsequent articles in Boot Three, Title III, Chapter I to Chapter IV of Presidential Decree No. 442 are hereby renumbered accordingly.
SEC. 4. A new chapter is hereby inserted after Book Three, Title III of Presidential Decree No. 442, to read as follows:
Chapter V
Employment of Night Workers
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Art. 154. Coverage. This chapter shall apply to all persons, who shall be employed or permitted or suffered to work at night, except those employed in agriculture, stock
raising, fishing, maritime transport and inland navigation, during a period of not less than seven (7) consecutive hours, including the interval from midnight to five oclock in
the morning, to be determined by the Secretary of Labor and Employment, after consulting the workers representatives/labor organizations and employers.
Night worker means any employed person whose work requires performance of a substantial number of hours of night work which exceeds a specified limit. This limit
shall be fixed by the Secretary of Labor after consulting the workers representatives/labor organizations and employers.
Art. 155. Health Assessment, At their request, workers shall have the right to undergo a health assessment without charge and to receive advice on how to reduce or
avoid health problems associated with their work:
(a) Before taking up an assignment as a night worker;
(b) At regular intervals during such an assignment; and
(c) If they experience health problems during such an assignment which are not caused by factors other than the performance of night work.
With the exception of a finding of unfitness for night work, the findings of such assessments shall not be transmitted to others without the workers consent and shall not
be used to their detriment.
Art. 156. Mandatory Facilities. Suitable first-aid facilities shall be made available for workers performing night work, including arrangements where such workers, where
necessary, can be taken immediately to a place for appropriate treatment. The employers are likewise required to provide safe and healthful working conditions and
adequate or reasonable facilities such as sleeping or resting quarters in the establishment and transportation from the work premises to the nearest point of their
residence subject to exceptions and guidelines to be provided by the DOLE.
Art. 157. Transfer. Night workers who are certified as unfit for night work, due to health reasons, shall be transferred, whenever practicable, to a similar job for which
they are fit to work.
If such transfer to a similar job is not practicable, these workers shall be granted the same benefits as other workers who are unable to work, or to secure employment
during such period.
A night worker certified as temporarily unfit for night work shall be given the same protection against dismissal or notice of dismissal as other workers who are prevented
from working for reasons of health.
Art. 158. Women Night Workers. Measures shall be taken to ensure that an alternative to night work is available to women workers who would otherwise be called
upon to perform such work:
(a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided between the time before and after childbirth;
(b) For additional periods, in respect of which a medical certificate is produced stating that said additional periods are necessary for the health of the mother or child:
(1) During pregnancy;
(2) During a specified time beyond the period, after childbirth is fixed pursuant to subparagraph (a) above, the length of which shall be determined by the DOLE after
consulting the labor organizations and employers.
During the periods referred to in this article:
(i) A woman worker shall not be dismissed or given notice of dismissal, except for just or authorized causes provided for in this Code that are not connected with
pregnancy, childbirth and childcare responsibilities.
(ii) A woman worker shall not lose the benefits regarding her status, seniority, and access to promotion which may attach to her regular night work position.
Pregnant women and nursing mothers may he allowed to work at night only if a competent physician, other than the company physician, shall certify their fitness to
render night work, and specify, in the ease of pregnant employees, the period of the pregnancy that they can safely work.
The measures referred to in this article may include transfer to day work where this is possible, the provision of social security benefits or an extension of maternity leave.
The provisions of this article shall not have the effect of reducing the protection and benefits connected with maternity leave under existing laws.
Art. 159. Compensation. The compensation for night workers in the form of working time, pay or similar benefits shall recognize the exceptional nature of night work.
Art. 160. Social Services.Appropriate social services shall be provided for night workers and, where necessary, for workers performing night work.
Art. 161. Night Work Schedules. Before introducing work schedules requiring the services of night workers, the employer shall consult the workers
representatives/labor organizations concerned on the details of such schedules and the forms of organization of night work that are best adapted to the establishment and
its personnel, as well as on the occupational health measures and social services which are required. In establishments employing night workers, consultation shall take
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place regularly.
SEC. 5. The subsequent articles starting from Book Four, Title I, Chapter I of Presidential Decree No. 442 are hereby renumbered accordingly.
SEC. 6. Application. The measures referred to in this chapter shall be applied not later than six (G) months from the effectivity of this Act.
SEC. 7. Guidelines. The DOLE shah promulgate appropriate regulations in addition to existing ones to ensure protection, safety and welfare of night workers.
SEC. 8. Penalties. Any violation of this Act, and the rules and regulations issued pursuant hereof shall be punished with a fine of not less than Thirty thousand pesos
(P30,000.00) nor more than Fifty thousand pesos (P50,000.00) or imprisonment of not less than six (6) months, or both, at the discretion of the court. If the offense is
committed by a corporation, trust, firm, partnership or association, or other entity, the penalty shall be imposed upon the guilty officer or officers of such corporation,
trust, firm, partnership or association, or entity.
SEC. 9. Separability Clause. If any portion of this Act is declared unconstitutional, the same shall not affect the validity and effectivity of the other provisions not affected
thereby.
SEC. 10. Repealing Clause. All laws, acts, decrees, executive orders, rules and regulations or other issuances or parts thereof, which are inconsistent with this Act, are
hereby modified and repealed.
SEC. 11 Effectivity Clause. This Act shall take effect after fifteen (15) days following its publication in two (2) national newspapers of general circulation.

5. Prohibited Acts
a. Discrimination 135; RA 9710, Sec. 2, par. 2; Sec. 12
LABOR CODE: Art. 135
Art. 135: Discrimination prohibited. It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of
employment solely on account of her sex.
The following are acts of discrimination:
Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe benefits, to a female employees as against a male employee, for work
of equal value; and
Favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in this Article or any violation of the rules and regulations issued pursuant to Section 2 hereof
shall be penalized as provided in Articles 288 and 289 of this Code: Provided, That the institution of any criminal action under this provision shall not bar the aggrieved
employee from filing an entirely separate and distinct action for money claims, which may include claims for damages and other affirmative reliefs. The actions hereby
authorized shall proceed independently of each other. (As amended by Republic Act No. 6725, May 12, 1989)

R.A. 9710: Sec. 2

Sec. 2, par 2: The State condemns discrimination against women in all its forms and pursues by all appropriate means and without delay the policy of eliminating
discrimination against women in keeping with the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and other international
instruments consistent with Philippine law. The State shall accord women the rights, protection, and opportunities available to every member of society.
Sec. 12. Equal Treatment Before the Law. - The State shall take steps to review and, when necessary, amend and/or repeal existing laws that are discriminatory to women
within three (3) years from the effectivity of this Act.

b. Stipulation against Marriage 136

LABOR CODE: Art. 136
Art. 136. The State condemns discrimination against women in all its forms and pursues by all appropriate means and without delay the policy of eliminating discrimination
against women in keeping with the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and other international instruments consistent
with Philippine law. The State shall accord women the rights, protection, and opportunities available to every member of society.
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c. Discharge to prevent enjoyment of benefits 137 (1)
LABOR CODE: Art. 137 (1)
Art. 137(1): Prohibited acts.
It shall be unlawful for any employer:
(1)To deny any woman employee the benefits provided for in this Chapter or to discharge any woman employed by him for the purpose of preventing her from enjoying
any of the benefits provided under this Code.

d. Discharge on Account of Pregnancy 137 (2) (3); RA 9710, Sec. 13 (c)

LABOR CODE: Art. 137 (2) (3)
Art. 137(2) and (3): Prohibited acts.
(2)To discharge such woman on account of her pregnancy, or while on leave or in confinement due to her pregnancy;
(3)To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant.

R.A. 9710: Sec. 13 (c)

Sec. 13(c): Expulsion and non-readmission of women faculty due to pregnancy outside of marriage shall be outlawed. No school shall turn out or refuse admission to a
female student solely on the account of her having contracted pregnancy outside of marriage during her term in school.

e. Discharge on Account of Testimony Book III, Rule XII, Sec. 13 (d)

Omnibus Rules, Book III, Rule XII, Sec. 13 (d)
Sec. 13(d): Prohibited acts. It shall be unlawful for any employer:
(d) To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under the Code;

f. Expulsion of Women faculty/ female student due to pregnancy outside of marriage RA 9710, Sec. 13 (c) (supra)

6. Facilities 132. 134; Book III, Rule XII, Sec. 11

LABOR CODE: Arts. 132, 134
Art. 132: Facilities for women. The Secretary of Labor and Employment shall establish standards that will ensure the safety and health of women employees. In
appropriate cases, he shall, by regulations, require any employer to:
(a) Provide seats proper for women and permit them to use such seats when they are free from work and during working hours, provided they can perform their duties in
this position without detriment to efficiency;
(b) To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women;
(c) To establish a nursery in a workplace for the benefit of the women employees therein; and
(d) To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those of flight attendants and the like.
Art 134: Family planning services; incentives for family planning.
a. Establishments which are required by law to maintain a clinic or infirmary shall provide free family planning services to their employees which shall include, but
not be limited to, the application or use of contraceptive pills and intrauterine devices.

b. In coordination with other agencies of the government engaged in the promotion of family planning, the Department of Labor and Employment shall develop and
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prescribe incentive bonus schemes to encourage family planning among female workers in any establishment or enterprise.

Omnibus Rules, Book III, Rule XII, Sec. 11

Sec. 11: Family planning services. Employers who habitually employ more than two hundred (200) workers in any locality shall provide free family-planning services to
their employees and their spouses which shall include but not limited to, the application or use of contraceptives.
Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30) days from the effective date of these
Rules, prescribe the minimum requirements of family planning services to be given by employers to their employees.

7. Special Women Workers 138

LABOR CODE: Art. 138
Art. 138. Classification of certain women workers. Any woman who is permitted or suffered to work, with or without compensation, in any night club, cocktail lounge,
massage clinic, bar or similar establishments under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of
Labor and Employment, shall be considered as an employee of such establishment for purposes of labor and social legislation.

8. Maternity Leave Social Security Act of 1997, Sec. 14-A, RA 828

R.A. 828: Social Security Act of 1997, Sec. 14-A
Sec. 14-A: Maternity Leave Benefit. - A female member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the
semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60)
days or seventy-eight (78) days in case of caesarian delivery, subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefits
have been received;
"(d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or
without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits
which said employee member would otherwise have been entitled to.

9. Sexual Harassment RA 7877 of 1995 (Anti-Sexual Harassment Act)

R.A. 7877: Anti-Sexual Harassment Act of 1995
RA 7877 OF 1995 (Anti-Sexual Harassment Act): AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE EMPLOYMENT, EDUACATION OR TRAINING
ENVIRONMENT, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Title. - This Act shall be known as the "Anti-Sexual Harassment Act of 1995."
SECTION 2. Declaration of Policy. - The State shall value the dignity of every individual, enhance the development of its human resources, guarantee full respect for human
rights, and uphold the dignity of workers, employees, applicants for employment, students or those undergoing training, instruction or education. Towards this end, all
forms of sexual harassment in the employment, education or training environment are hereby declared unlawful.
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SECTION 3. Work, Education or Training -Related, Sexual Harassment Defined. - Work, education or training-related sexual harassment is committed by an employer,
employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral
ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether
the demand, request or requirement for submission is accepted by the object of said Act.
(a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment of said individual, or in granting said individual
favorable compensation, terms of conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee
which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employee's rights or privileges under existing labor laws; or
(3) The above acts would result in an intimidating, hostile, or offensive environment for the employee.
(b) In an education or training environment, sexual harassment is committed:
(1) Against one who is under the care, custody or supervision of the offender;
(2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender;
(3) When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other
benefits, privileges, or consideration; or
(4) When the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice.
Any person who directs or induces another to commit any act of sexual harassment as herein defined, or who cooperates in the commission thereof by another without
which it would not have been committed, shall also be held liable under this Act.
SECTION 4. Duty of the Employer or Head of Office in a Work-related, Education or Training Environment. - It shall be the duty of the employer or the head of the work-
related, educational or training environment or institution, to prevent or deter the commission of acts of sexual harassment and to provide the procedures for the
resolution, settlement or prosecution of acts of sexual harassment. Towards this end, the employer or head of office shall:
(a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by the employees or students or trainees, through their duly designated
representatives, prescribing the procedure for the investigation of sexual harassment cases and the administrative sanctions therefor.
Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts of sexual harassment.
The said rules and regulations issued pursuant to this subsection (a) shall include, among others, guidelines on proper decorum in the workplace and educational or
training institutions.
(b) Create a committee on decorum and investigation of cases on sexual harassment. The committee shall conduct meetings, as the case may be, with officers and
employees, teachers, instructors, professors, coaches, trainors, and students or trainees to increase understanding and prevent incidents of sexual harassment. It shall also
conduct the investigation of alleged cases constituting sexual harassment.
In the case of a work-related environment, the committee shall be composed of at least one (1) representative each from the management, the union, if any, the
employees from the supervisory rank, and from the rank and file employees.
In the case of the educational or training institution, the committee shall be composed of at least one (1) representative from the administration, the trainors,
instructors, professors or coaches and students or trainees, as the case may be.
The employer or head of office, educational or training institution shall disseminate or post a copy of this Act for the information of all concerned.
SECTION 5. Liability of the Employer, Head of Office, Educational or Training Institution. - The employer or head of office, educational or training institution shall be
solidarily liable for damages arising from the acts of sexual harassment committed in the employment, education or training environment if the employer or head of
office, educational or training institution is informed of such acts by the offended party and no immediate action is taken.
SECTION 6. Independent Action for Damages. - Nothing in this Act shall preclude the victim of work, education or training-related sexual harassment from instituting a
separate and independent action for damages and other affirmative relief.
SECTION 7. Penalties. - Any person who violates the provisions of this Act shall, upon conviction, be penalized by imprisonment of not less than one (1) month nor more
than six (6) months, or a fine of not less than Ten thousand pesos (P10,000) nor more than Twenty thousand pesos (P20,000), or both such fine and imprisonment at the
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discretion of the court.
Any action arising from the violation of the provisions of this Act shall prescribe in three (3) years.
SECTION 8. Separability Clause. - If any portion or provision of this Act is declared void or unconstitutional, the remaining portions or provisions hereof shall not be affected
by such declaration.
SECTION 9. Repealing Clause. - All laws, decrees, orders, rules and regulations, other issuances, or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.
SECTION 10. Effectivity Clause.- This Act shall take effect fifteen (15) days after its complete publication in at least two (2) national newspapers of general circulation

a. Definition Sec. 3
R.A. 7877: Anti-Sexual Harassment Act of 1995, Sec. 3
SECTION 3. Work, Education or Training -Related, Sexual Harassment Defined. - Work, education or training-related sexual harassment is committed by an employer,
employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral
ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether
the demand, request or requirement for submission is accepted by the object of said Act.
(a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment of said individual, or in granting said individual
favorable compensation, terms of conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee
which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employee's rights or privileges under existing labor laws; or
(3) The above acts would result in an intimidating, hostile, or offensive environment for the employee.
(b) In an education or training environment, sexual harassment is committed:
(1) Against one who is under the care, custody or supervision of the offender;
(2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender;
(3) When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other
benefits, privileges, or consideration; or
(4) When the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice.
Any person who directs or induces another to commit any act of sexual harassment as herein defined, or who cooperates in the commission thereof by another without
which it would not have been committed, shall also be held liable under this Act.

b. When committed in a work-related/ employment environment Sec. 3 (a) (supra)

c. Duty of the employer Sec. 4
R.A. 7877: Anti-Sexual Harassment Act of 1995, Sec. 4
SECTION 4. Duty of the Employer or Head of Office in a Work-related, Education or Training Environment. - It shall be the duty of the employer or the head of the work-
related, educational or training environment or institution, to prevent or deter the commission of acts of sexual harassment and to provide the procedures for the
resolution, settlement or prosecution of acts of sexual harassment. Towards this end, the employer or head of office shall:
(a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by the employees or students or trainees, through their duly designated
representatives, prescribing the procedure for the investigation of sexual harassment cases and the administrative sanctions therefor.
Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts of sexual harassment.
The said rules and regulations issued pursuant to this subsection (a) shall include, among others, guidelines on proper decorum in the workplace and educational or
training institutions.
(b) Create a committee on decorum and investigation of cases on sexual harassment. The committee shall conduct meetings, as the case may be, with officers and
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employees, teachers, instructors, professors, coaches, trainors, and students or trainees to increase understanding and prevent incidents of sexual harassment. It shall also
conduct the investigation of alleged cases constituting sexual harassment.
In the case of a work-related environment, the committee shall be composed of at least one (1) representative each from the management, the union, if any, the
employees from the supervisory rank, and from the rank and file employees.
In the case of the educational or training institution, the committee shall be composed of at least one (1) representative from the administration, the trainors,
instructors, professors or coaches and students or trainees, as the case may be.
The employer or head of office, educational or training institution shall disseminate or post a copy of this Act for the information of all concerned.

B. CHILDREN - Arts. 139-140; Omnibus Rules, Book III, Rule XII, Secs. 2-3; RA 7610 of 1992 as amended by RA 7658, RA 9231 (Special Protection of Children)
of 2003; Dept. Circular No. 3, S 2009 (Procedure for Closure of Business Under RA 9231); DO no. 65-04 Rules & Regulations Implementing RA 9231 (26
July 2004)
1. UN General Assembly Convention on the Rights of the Child (CRC), 20 November 1989
Convention on the Rights of the Child (CRC), 20 November 1989
Adopted and opened for signature, ratification and accession by General Assembly resolution 44/25 of 20 November 1989
Entry into force 2 September 1990, in accordance with article 49
Preamble
The States Parties to the present Convention,
Considering that, in accordance with the principles proclaimed in the Charter of the United Nations, recognition of the inherent dignity and of the equal and inalienable
rights of all members of the human family is the foundation of freedom, justice and peace in the world,
Bearing in mind that the peoples of the United Nations have, in the Charter, reaffirmed their faith in fundamental human rights and in the dignity and worth of the human
person, and have determined to promote social progress and better standards of life in larger freedom,
Recognizing that the United Nations has, in the Universal Declaration of Human Rights and in the International Covenants on Human Rights, proclaimed and agreed that
everyone is entitled to all the rights and freedoms set forth therein, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion,
national or social origin, property, birth or other status,
Recalling that, in the Universal Declaration of Human Rights, the United Nations has proclaimed that childhood is entitled to special care and assistance,
Convinced that the family, as the fundamental group of society and the natural environment for the growth and well-being of all its members and particularly children,
should be afforded the necessary protection and assistance so that it can fully assume its responsibilities within the community,
Recognizing that the child, for the full and harmonious development of his or her personality, should grow up in a family environment, in an atmosphere of happiness, love
and understanding,
Considering that the child should be fully prepared to live an individual life in society, and brought up in the spirit of the ideals proclaimed in the Charter of the United
Nations, and in particular in the spirit of peace, dignity, tolerance, freedom, equality and solidarity,
Bearing in mind that the need to extend particular care to the child has been stated in the Geneva Declaration of the Rights of the Child of 1924 and in the Declaration of
the Rights of the Child adopted by the General Assembly on 20 November 1959 and recognized in the Universal Declaration of Human Rights, in the International Covenant
on Civil and Political Rights (in particular in articles 23 and 24), in the International Covenant on Economic, Social and Cultural Rights (in particular in article 10) and in the
statutes and relevant instruments of specialized agencies and international organizations concerned with the welfare of children,
Bearing in mind that, as indicated in the Declaration of the Rights of the Child, "the child, by reason of his physical and mental immaturity, needs special safeguards and
care, including appropriate legal protection, before as well as after birth",
Recalling the provisions of the Declaration on Social and Legal Principles relating to the Protection and Welfare of Children, with Special Reference to Foster Placement and
Adoption Nationally and Internationally; the United Nations Standard Minimum Rules for the Administration of Juvenile Justice (The Beijing Rules); and the Declaration on
the Protection of Women and Children in Emergency and Armed Conflict, Recognizing that, in all countries in the world, there are children living in exceptionally difficult
conditions, and that such children need special consideration,
Taking due account of the importance of the traditions and cultural values of each people for the protection and harmonious development of the child, Recognizing the
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importance of international co-operation for improving the living conditions of children in every country, in particular in the developing countries,
Have agreed as follows:

PART I
Article 1. For the purposes of the present Convention, a child means every human being below the age of eighteen years unless under the law applicable to the child,
majority is attained earlier.
Article 2
1. States Parties shall respect and ensure the rights set forth in the present Convention to each child within their jurisdiction without discrimination of any kind, irrespective
of the child's or his or her parent's or legal guardian's race, colour, sex, language, religion, political or other opinion, national, ethnic or social origin, property, disability,
birth or other status.
2. States Parties shall take all appropriate measures to ensure that the child is protected against all forms of discrimination or punishment on the basis of the status,
activities, expressed opinions, or beliefs of the child's parents, legal guardians, or family members.
Article 3
1. In all actions concerning children, whether undertaken by public or private social welfare institutions, courts of law, administrative authorities or legislative bodies, the
best interests of the child shall be a primary consideration.
2. States Parties undertake to ensure the child such protection and care as is necessary for his or her well-being, taking into account the rights and duties of his or her
parents, legal guardians, or other individuals legally responsible for him or her, and, to this end, shall take all appropriate legislative and administrative measures.
3. States Parties shall ensure that the institutions, services and facilities responsible for the care or protection of children shall conform with the standards established by
competent authorities, particularly in the areas of safety, health, in the number and suitability of their staff, as well as competent supervision.
Article 4. States Parties shall undertake all appropriate legislative, administrative, and other measures for the implementation of the rights recognized in the present
Convention. With regard to economic, social and cultural rights, States Parties shall undertake such measures to the maximum extent of their available resources and,
where needed, within the framework of international co-operation.
Article 5. States Parties shall respect the responsibilities, rights and duties of parents or, where applicable, the members of the extended family or community as provided
for by local custom, legal guardians or other persons legally responsible for the child, to provide, in a manner consistent with the evolving capacities of the child,
appropriate direction and guidance in the exercise by the child of the rights recognized in the present Convention.
Article 6
1. States Parties recognize that every child has the inherent right to life.
2. States Parties shall ensure to the maximum extent possible the survival and development of the child.
Article 7
1. The child shall be registered immediately after birth and shall have the right from birth to a name, the right to acquire a nationality and. as far as possible, the right to
know and be cared for by his or her parents.
2. States Parties shall ensure the implementation of these rights in accordance with their national law and their obligations under the relevant international instruments in
this field, in particular where the child would otherwise be stateless.
Article 8
1. States Parties undertake to respect the right of the child to preserve his or her identity, including nationality, name and family relations as recognized by law without
unlawful interference.
2. Where a child is illegally deprived of some or all of the elements of his or her identity, States Parties shall provide appropriate assistance and protection, with a view to
re-establishing speedily his or her identity.
Article 9
1. States Parties shall ensure that a child shall not be separated from his or her parents against their will, except when competent authorities subject to judicial review
determine, in accordance with applicable law and procedures, that such separation is necessary for the best interests of the child. Such determination may be necessary in
a particular case such as one involving abuse or neglect of the child by the parents, or one where the parents are living separately and a decision must be made as to the
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child's place of residence.
2. In any proceedings pursuant to paragraph 1 of the present article, all interested parties shall be given an opportunity to participate in the proceedings and make their
views known.
3. States Parties shall respect the right of the child who is separated from one or both parents to maintain personal relations and direct contact with both parents on a
regular basis, except if it is contrary to the child's best interests.
4. Where such separation results from any action initiated by a State Party, such as the detention, imprisonment, exile, deportation or death (including death arising from
any cause while the person is in the custody of the State) of one or both parents or of the child, that State Party shall, upon request, provide the parents, the child or, if
appropriate, another member of the family with the essential information concerning the whereabouts of the absent member(s) of the family unless the provision of the
information would be detrimental to the well-being of the child. States Parties shall further ensure that the submission of such a request shall of itself entail no adverse
consequences for the person(s) concerned.
Article 10
1.In accordance with the obligation of States Parties under article 9, paragraph 1, applications by a child or his or her parents to enter or leave a State Party for the purpose
of family reunification shall be dealt with by States Parties in a positive, humane and expeditious manner. States Parties shall further ensure that the submission of such a
request shall entail no adverse consequences for the applicants and for the members of their family.
2. A child whose parents reside in different States shall have the right to maintain on a regular basis, save in exceptional circumstances personal relations and direct
contacts with both parents. Towards that end and in accordance with the obligation of States Parties under article 9, paragraph 1, States Parties shall respect the right of
the child and his or her parents to leave any country, including their own, and to enter their own country. The right to leave any country shall be subject only to such
restrictions as are prescribed by law and which are necessary to protect the national security, public order (ordre public), public health or morals or the rights and freedoms
of others and are consistent with the other rights recognized in the present Convention.
Article 11
1. States Parties shall take measures to combat the illicit transfer and non-return of children abroad.
2. To this end, States Parties shall promote the conclusion of bilateral or multilateral agreements or accession to existing agreements.
Article 12
1. States Parties shall assure to the child who is capable of forming his or her own views the right to express those views freely in all matters affecting the child, the views of
the child being given due weight in accordance with the age and maturity of the child.
2. For this purpose, the child shall in particular be provided the opportunity to be heard in any judicial and administrative proceedings affecting the child, either directly, or
through a representative or an appropriate body, in a manner consistent with the procedural rules of national law.
Article 13
1. The child shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of
frontiers, either orally, in writing or in print, in the form of art, or through any other media of the child's choice.
2. The exercise of this right may be subject to certain restrictions, but these shall only be such as are provided by law and are necessary:
(a) For respect of the rights or reputations of others; or
(b) For the protection of national security or of public order (ordre public), or of public health or morals.
Article 14
1. States Parties shall respect the right of the child to freedom of thought, conscience and religion.
2. States Parties shall respect the rights and duties of the parents and, when applicable, legal guardians, to provide direction to the child in the exercise of his or her right in
a manner consistent with the evolving capacities of the child.
3. Freedom to manifest one's religion or beliefs may be subject only to such limitations as are prescribed by law and are necessary to protect public safety, order, health or
morals, or the fundamental rights and freedoms of others.
Article 15
1. States Parties recognize the rights of the child to freedom of association and to freedom of peaceful assembly.
2. No restrictions may be placed on the exercise of these rights other than those imposed in conformity with the law and which are necessary in a democratic society in the
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interests of national security or public safety, public order (ordre public), the protection of public health or morals or the protection of the rights and freedoms of others.
Article 16
1.No child shall be subjected to arbitrary or unlawful interference with his or her privacy, family, or correspondence, nor to unlawful attacks on his or her honour and
reputation.
2. The child has the right to the protection of the law against such interference or attacks.
Article 17. States Parties recognize the important function performed by the mass media and shall ensure that the child has access to information and material from a
diversity of national and international sources, especially those aimed at the promotion of his or her social, spiritual and moral well-being and physical and mental health.
To this end, States Parties shall:
(a) Encourage the mass media to disseminate information and material of social and cultural benefit to the child and in accordance with the spirit of article 29;
(b) Encourage international co-operation in the production, exchange and dissemination of such information and material from a diversity of cultural, national and
international sources;
(c) Encourage the production and dissemination of children's books;
(d) Encourage the mass media to have particular regard to the linguistic needs of the child who belongs to a minority group or who is indigenous;
(e) Encourage the development of appropriate guidelines for the protection of the child from information and material injurious to his or her well-being, bearing in mind
the provisions of articles 13 and 18.
Article 18
1. States Parties shall use their best efforts to ensure recognition of the principle that both parents have common responsibilities for the upbringing and development of
the child. Parents or, as the case may be, legal guardians, have the primary responsibility for the upbringing and development of the child. The best interests of the child
will be their basic concern.
2. For the purpose of guaranteeing and promoting the rights set forth in the present Convention, States Parties shall render appropriate assistance to parents and legal
guardians in the performance of their child-rearing responsibilities and shall ensure the development of institutions, facilities and services for the care of children.
3. States Parties shall take all appropriate measures to ensure that children of working parents have the right to benefit from child-care services and facilities for which they
are eligible.
Article 19
1. States Parties shall take all appropriate legislative, administrative, social and educational measures to protect the child from all forms of physical or mental violence,
injury or abuse, neglect or negligent treatment, maltreatment or exploitation, including sexual abuse, while in the care of parent(s), legal guardian(s) or any other person
who has the care of the child.
2. Such protective measures should, as appropriate, include effective procedures for the establishment of social programmes to provide necessary support for the child and
for those who have the care of the child, as well as for other forms of prevention and for identification, reporting, referral, investigation, treatment and follow-up of
instances of child maltreatment described heretofore, and, as appropriate, for judicial involvement.
Article 20
1. A child temporarily or permanently deprived of his or her family environment, or in whose own best interests cannot be allowed to remain in that environment, shall be
entitled to special protection and assistance provided by the State.
2. States Parties shall in accordance with their national laws ensure alternative care for such a child.
3. Such care could include, inter alia, foster placement, kafalah of Islamic law, adoption or if necessary placement in suitable institutions for the care of children. When
considering solutions, due regard shall be paid to the desirability of continuity in a child's upbringing and to the child's ethnic, religious, cultural and linguistic background.
Article 21. States Parties that recognize and/or permit the system of adoption shall ensure that the best interests of the child shall be the paramount consideration and
they shall:
(a) Ensure that the adoption of a child is authorized only by competent authorities who determine, in accordance with applicable law and procedures and on the basis of all
pertinent and reliable information, that the adoption is permissible in view of the child's status concerning parents, relatives and legal guardians and that, if required, the
persons concerned have given their informed consent to the adoption on the basis of such counselling as may be necessary;
(b) Recognize that inter-country adoption may be considered as an alternative means of child's care, if the child cannot be placed in a foster or an adoptive family or cannot
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in any suitable manner be cared for in the child's country of origin;
(c) Ensure that the child concerned by inter-country adoption enjoys safeguards and standards equivalent to those existing in the case of national adoption;
(d) Take all appropriate measures to ensure that, in inter-country adoption, the placement does not result in improper financial gain for those involved in it;
(e) Promote, where appropriate, the objectives of the present article by concluding bilateral or multilateral arrangements or agreements, and endeavour, within this
framework, to ensure that the placement of the child in another country is carried out by competent authorities or organs.
Article 22
1. States Parties shall take appropriate measures to ensure that a child who is seeking refugee status or who is considered a refugee in accordance with applicable
international or domestic law and procedures shall, whether unaccompanied or accompanied by his or her parents or by any other person, receive appropriate protection
and humanitarian assistance in the enjoyment of applicable rights set forth in the present Convention and in other international human rights or humanitarian instruments
to which the said States are Parties.
2. For this purpose, States Parties shall provide, as they consider appropriate, co-operation in any efforts by the United Nations and other competent intergovernmental
organizations or non-governmental organizations co-operating with the United Nations to protect and assist such a child and to trace the parents or other members of the
family of any refugee child in order to obtain information necessary for reunification with his or her family. In cases where no parents or other members of the family can
be found, the child shall be accorded the same protection as any other child permanently or temporarily deprived of his or her family environment for any reason, as set
forth in the present Convention.
Article 23
1. States Parties recognize that a mentally or physically disabled child should enjoy a full and decent life, in conditions which ensure dignity, promote self-reliance and
facilitate the child's active participation in the community.
2. States Parties recognize the right of the disabled child to special care and shall encourage and ensure the extension, subject to available resources, to the eligible child
and those responsible for his or her care, of assistance for which application is made and which is appropriate to the child's condition and to the circumstances of the
parents or others caring for the child.
3. Recognizing the special needs of a disabled child, assistance extended in accordance with paragraph 2 of the present article shall be provided free of charge, whenever
possible, taking into account the financial resources of the parents or others caring for the child, and shall be designed to ensure that the disabled child has effective access
to and receives education, training, health care services, rehabilitation services, preparation for employment and recreation opportunities in a manner conducive to the
child's achieving the fullest possible social integration and individual development, including his or her cultural and spiritual development
4. States Parties shall promote, in the spirit of international cooperation, the exchange of appropriate information in the field of preventive health care and of medical,
psychological and functional treatment of disabled children, including dissemination of and access to information concerning methods of rehabilitation, education and
vocational services, with the aim of enabling States Parties to improve their capabilities and skills and to widen their experience in these areas. In this regard, particular
account shall be taken of the needs of developing countries.
Article 24
1. States Parties recognize the right of the child to the enjoyment of the highest attainable standard of health and to facilities for the treatment of illness and rehabilitation
of health. States Parties shall strive to ensure that no child is deprived of his or her right of access to such health care services.
2. States Parties shall pursue full implementation of this right and, in particular, shall take appropriate measures:
(a) To diminish infant and child mortality;
(b) To ensure the provision of necessary medical assistance and health care to all children with emphasis on the development of primary health care;
(c) To combat disease and malnutrition, including within the framework of primary health care, through, inter alia, the application of readily available technology and
through the provision of adequate nutritious foods and clean drinking-water, taking into consideration the dangers and risks of environmental pollution;
(d) To ensure appropriate pre-natal and post-natal health care for mothers;
(e) To ensure that all segments of society, in particular parents and children, are informed, have access to education and are supported in the use of basic knowledge of
child health and nutrition, the advantages of breastfeeding, hygiene and environmental sanitation and the prevention of accidents;
(f) To develop preventive health care, guidance for parents and family planning education and services.
3. States Parties shall take all effective and appropriate measures with a view to abolishing traditional practices prejudicial to the health of children.
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4. States Parties undertake to promote and encourage international co-operation with a view to achieving progressively the full realization of the right recognized in the
present article. In this regard, particular account shall be taken of the needs of developing countries.
Article 25. States Parties recognize the right of a child who has been placed by the competent authorities for the purposes of care, protection or treatment of his or her
physical or mental health, to a periodic review of the treatment provided to the child and all other circumstances relevant to his or her placement.
Article 26
1. States Parties shall recognize for every child the right to benefit from social security, including social insurance, and shall take the necessary measures to achieve the full
realization of this right in accordance with their national law.
2. The benefits should, where appropriate, be granted, taking into account the resources and the circumstances of the child and persons having responsibility for the
maintenance of the child, as well as any other consideration relevant to an application for benefits made by or on behalf of the child.
Article 27
1. States Parties recognize the right of every child to a standard of living adequate for the child's physical, mental, spiritual, moral and social development.
2. The parent(s) or others responsible for the child have the primary responsibility to secure, within their abilities and financial capacities, the conditions of living necessary
for the child's development.
3. States Parties, in accordance with national conditions and within their means, shall take appropriate measures to assist parents and others responsible for the child to
implement this right and shall in case of need provide material assistance and support programmes, particularly with regard to nutrition, clothing and housing.
4. States Parties shall take all appropriate measures to secure the recovery of maintenance for the child from the parents or other persons having financial responsibility for
the child, both within the State Party and from abroad. In particular, where the person having financial responsibility for the child lives in a State different from that of the
child, States Parties shall promote the accession to international agreements or the conclusion of such agreements, as well as the making of other appropriate
arrangements.
Article 28
1. States Parties recognize the right of the child to education, and with a view to achieving this right progressively and on the basis of equal opportunity, they shall, in
particular:
(a) Make primary education compulsory and available free to all;
(b) Encourage the development of different forms of secondary education, including general and vocational education, make them available and accessible to every child,
and take appropriate measures such as the introduction of free education and offering financial assistance in case of need;
(c) Make higher education accessible to all on the basis of capacity by every appropriate means;
(d) Make educational and vocational information and guidance available and accessible to all children;
(e) Take measures to encourage regular attendance at schools and the reduction of drop-out rates.
2. States Parties shall take all appropriate measures to ensure that school discipline is administered in a manner consistent with the child's human dignity and in conformity
with the present Convention.
3. States Parties shall promote and encourage international cooperation in matters relating to education, in particular with a view to contributing to the elimination of
ignorance and illiteracy throughout the world and facilitating access to scientific and technical knowledge and modern teaching methods. In this regard, particular account
shall be taken of the needs of developing countries.
Article 29
1. States Parties agree that the education of the child shall be directed to:
(a) The development of the child's personality, talents and mental and physical abilities to their fullest potential;
(b) The development of respect for human rights and fundamental freedoms, and for the principles enshrined in the Charter of the United Nations;
(c) The development of respect for the child's parents, his or her own cultural identity, language and values, for the national values of the country in which the child is
living, the country from which he or she may originate, and for civilizations different from his or her own;
(d) The preparation of the child for responsible life in a free society, in the spirit of understanding, peace, tolerance, equality of sexes, and friendship among all peoples,
ethnic, national and religious groups and persons of indigenous origin;
(e) The development of respect for the natural environment.
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2. No part of the present article or article 28 shall be construed so as to interfere with the liberty of individuals and bodies to establish and direct educational institutions,
subject always to the observance of the principle set forth in paragraph 1 of the present article and to the requirements that the education given in such institutions shall
conform to such minimum standards as may be laid down by the State.
Article 30. In those States in which ethnic, religious or linguistic minorities or persons of indigenous origin exist, a child belonging to such a minority or who is indigenous
shall not be denied the right, in community with other members of his or her group, to enjoy his or her own culture, to profess and practise his or her own religion, or to
use his or her own language.
Article 31
1. States Parties recognize the right of the child to rest and leisure, to engage in play and recreational activities appropriate to the age of the child and to participate freely
in cultural life and the arts.
2. States Parties shall respect and promote the right of the child to participate fully in cultural and artistic life and shall encourage the provision of appropriate and equal
opportunities for cultural, artistic, recreational and leisure activity.
Article 32
1. States Parties recognize the right of the child to be protected from economic exploitation and from performing any work that is likely to be hazardous or to interfere
with the child's education, or to be harmful to the child's health or physical, mental, spiritual, moral or social development.
2. States Parties shall take legislative, administrative, social and educational measures to ensure the implementation of the present article. To this end, and having regard
to the relevant provisions of other international instruments, States Parties shall in particular:
(a) Provide for a minimum age or minimum ages for admission to employment;
(b) Provide for appropriate regulation of the hours and conditions of employment;
(c) Provide for appropriate penalties or other sanctions to ensure the effective enforcement of the present article.
Article 33. States Parties shall take all appropriate measures, including legislative, administrative, social and educational measures, to protect children from the illicit use of
narcotic drugs and psychotropic substances as defined in the relevant international treaties, and to prevent the use of children in the illicit production and trafficking of
such substances.
Article 34. States Parties undertake to protect the child from all forms of sexual exploitation and sexual abuse. For these purposes, States Parties shall in particular take all
appropriate national, bilateral and multilateral measures to prevent:
(a) The inducement or coercion of a child to engage in any unlawful sexual activity;
(b) The exploitative use of children in prostitution or other unlawful sexual practices;
(c) The exploitative use of children in pornographic performances and materials.
Article 35. States Parties shall take all appropriate national, bilateral and multilateral measures to prevent the abduction of, the sale of or traffic in children for any purpose
or in any form.
Article 36. States Parties shall protect the child against all other forms of exploitation prejudicial to any aspects of the child's welfare.
Article 37. States Parties shall ensure that:
(a) No child shall be subjected to torture or other cruel, inhuman or degrading treatment or punishment. Neither capital punishment nor life imprisonment without
possibility of release shall be imposed for offences committed by persons below eighteen years of age;
(b) No child shall be deprived of his or her liberty unlawfully or arbitrarily. The arrest, detention or imprisonment of a child shall be in conformity with the law and shall be
used only as a measure of last resort and for the shortest appropriate period of time;
(c) Every child deprived of liberty shall be treated with humanity and respect for the inherent dignity of the human person, and in a manner which takes into account the
needs of persons of his or her age. In particular, every child deprived of liberty shall be separated from adults unless it is considered in the child's best interest not to do so
and shall have the right to maintain contact with his or her family through correspondence and visits, save in exceptional circumstances;
(d) Every child deprived of his or her liberty shall have the right to prompt access to legal and other appropriate assistance, as well as the right to challenge the legality of
the deprivation of his or her liberty before a court or other competent, independent and impartial authority, and to a prompt decision on any such action.
Article 38
1. States Parties undertake to respect and to ensure respect for rules of international humanitarian law applicable to them in armed conflicts which are relevant to the
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child.
2. States Parties shall take all feasible measures to ensure that persons who have not attained the age of fifteen years do not take a direct part in hostilities.
3. States Parties shall refrain from recruiting any person who has not attained the age of fifteen years into their armed forces. In recruiting among those persons who have
attained the age of fifteen years but who have not attained the age of eighteen years, States Parties shall endeavour to give priority to those who are oldest.
4. In accordance with their obligations under international humanitarian law to protect the civilian population in armed conflicts, States Parties shall take all feasible
measures to ensure protection and care of children who are affected by an armed conflict.
Article 39. States Parties shall take all appropriate measures to promote physical and psychological recovery and social reintegration of a child victim of: any form of
neglect, exploitation, or abuse; torture or any other form of cruel, inhuman or degrading treatment or punishment; or armed conflicts. Such recovery and reintegration
shall take place in an environment which fosters the health, self-respect and dignity of the child.
Article 40
1. States Parties recognize the right of every child alleged as, accused of, or recognized as having infringed the penal law to be treated in a manner consistent with the
promotion of the child's sense of dignity and worth, which reinforces the child's respect for the human rights and fundamental freedoms of others and which takes into
account the child's age and the desirability of promoting the child's reintegration and the child's assuming a constructive role in society.
2. To this end, and having regard to the relevant provisions of international instruments, States Parties shall, in particular, ensure that:
(a) No child shall be alleged as, be accused of, or recognized as having infringed the penal law by reason of acts or omissions that were not prohibited by national or
international law at the time they were committed;
(b) Every child alleged as or accused of having infringed the penal law has at least the following guarantees:
(i) To be presumed innocent until proven guilty according to law;
(ii) To be informed promptly and directly of the charges against him or her, and, if appropriate, through his or her parents or legal guardians, and to have legal or other
appropriate assistance in the preparation and presentation of his or her defence;
(iii) To have the matter determined without delay by a competent, independent and impartial authority or judicial body in a fair hearing according to law, in the presence
of legal or other appropriate assistance and, unless it is considered not to be in the best interest of the child, in particular, taking into account his or her age or situation, his
or her parents or legal guardians;
(iv) Not to be compelled to give testimony or to confess guilt; to examine or have examined adverse witnesses and to obtain the participation and examination of witnesses
on his or her behalf under conditions of equality;
(v) If considered to have infringed the penal law, to have this decision and any measures imposed in consequence thereof reviewed by a higher competent, independent
and impartial authority or judicial body according to law;
(vi) To have the free assistance of an interpreter if the child cannot understand or speak the language used;
(vii) To have his or her privacy fully respected at all stages of the proceedings.
3. States Parties shall seek to promote the establishment of laws, procedures, authorities and institutions specifically applicable to children alleged as, accused of, or
recognized as having infringed the penal law, and, in particular:
(a) The establishment of a minimum age below which children shall be presumed not to have the capacity to infringe the penal law;
(b) Whenever appropriate and desirable, measures for dealing with such children without resorting to judicial proceedings, providing that human rights and legal
safeguards are fully respected. 4. A variety of dispositions, such as care, guidance and supervision orders; counselling; probation; foster care; education and vocational
training programmes and other alternatives to institutional care shall be available to ensure that children are dealt with in a manner appropriate to their well-being and
proportionate both to their circumstances and the offence.
Article 41. Nothing in the present Convention shall affect any provisions which are more conducive to the realization of the rights of the child and which may be contained
in:
(a) The law of a State party; or
(b) International law in force for that State.

PART II
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Article 42. States Parties undertake to make the principles and provisions of the Convention widely known, by appropriate and active means, to adults and children alike.
Article 43
1. For the purpose of examining the progress made by States Parties in achieving the realization of the obligations undertaken in the present Convention, there shall be
established a Committee on the Rights of the Child, which shall carry out the functions hereinafter provided.
2. The Committee shall consist of eighteen experts of high moral standing and recognized competence in the field covered by this Convention.1/ The members of the
Committee shall be elected by States Parties from among their nationals and shall serve in their personal capacity, consideration being given to equitable geographical
distribution, as well as to the principal legal systems.
3. The members of the Committee shall be elected by secret ballot from a list of persons nominated by States Parties. Each State Party may nominate one person from
among its own nationals.
4. The initial election to the Committee shall be held no later than six months after the date of the entry into force of the present Convention and thereafter every second
year. At least four months before the date of each election, the Secretary-General of the United Nations shall address a letter to States Parties inviting them to submit their
nominations within two months. The Secretary-General shall subsequently prepare a list in alphabetical order of all persons thus nominated, indicating States Parties which
have nominated them, and shall submit it to the States Parties to the present Convention.
5. The elections shall be held at meetings of States Parties convened by the Secretary-General at United Nations Headquarters. At those meetings, for which two thirds of
States Parties shall constitute a quorum, the persons elected to the Committee shall be those who obtain the largest number of votes and an absolute majority of the votes
of the representatives of States Parties present and voting.
6. The members of the Committee shall be elected for a term of four years. They shall be eligible for re-election if renominated. The term of five of the members elected at
the first election shall expire at the end of two years; immediately after the first election, the names of these five members shall be chosen by lot by the Chairman of the
meeting.
7. If a member of the Committee dies or resigns or declares that for any other cause he or she can no longer perform the duties of the Committee, the State Party which
nominated the member shall appoint another expert from among its nationals to serve for the remainder of the term, subject to the approval of the Committee.
8. The Committee shall establish its own rules of procedure.
9. The Committee shall elect its officers for a period of two years.
10. The meetings of the Committee shall normally be held at United Nations Headquarters or at any other convenient place as determined by the Committee. The
Committee shall normally meet annually. The duration of the meetings of the Committee shall be determined, and reviewed, if necessary, by a meeting of the States
Parties to the present Convention, subject to the approval of the General Assembly.
11. The Secretary-General of the United Nations shall provide the necessary staff and facilities for the effective performance of the functions of the Committee under the
present Convention.
12. With the approval of the General Assembly, the members of the Committee established under the present Convention shall receive emoluments from United Nations
resources on such terms and conditions as the Assembly may decide.
Article 44
1. States Parties undertake to submit to the Committee, through the Secretary-General of the United Nations, reports on the measures they have adopted which give
effect to the rights recognized herein and on the progress made on the enjoyment of those rights
(a) Within two years of the entry into force of the Convention for the State Party concerned;
(b) Thereafter every five years.
2. Reports made under the present article shall indicate factors and difficulties, if any, affecting the degree of fulfilment of the obligations under the present Convention.
Reports shall also contain sufficient information to provide the Committee with a comprehensive understanding of the implementation of the Convention in the country
concerned.
3. A State Party which has submitted a comprehensive initial report to the Committee need not, in its subsequent reports submitted in accordance with paragraph 1 (b) of
the present article, repeat basic information previously provided.
4. The Committee may request from States Parties further information relevant to the implementation of the Convention.
5. The Committee shall submit to the General Assembly, through the Economic and Social Council, every two years, reports on its activities.
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6. States Parties shall make their reports widely available to the public in their own countries.
Article 45. In order to foster the effective implementation of the Convention and to encourage international co-operation in the field covered by the Convention:
(a) The specialized agencies, the United Nations Children's Fund, and other United Nations organs shall be entitled to be represented at the consideration of the
implementation of such provisions of the present Convention as fall within the scope of their mandate. The Committee may invite the specialized agencies, the United
Nations Children's Fund and other competent bodies as it may consider appropriate to provide expert advice on the implementation of the Convention in areas falling
within the scope of their respective mandates. The Committee may invite the specialized agencies, the United Nations Children's Fund, and other United Nations organs to
submit reports on the implementation of the Convention in areas falling within the scope of their activities;
(b) The Committee shall transmit, as it may consider appropriate, to the specialized agencies, the United Nations Children's Fund and other competent bodies, any reports
from States Parties that contain a request, or indicate a need, for technical advice or assistance, along with the Committee's observations and suggestions, if any, on these
requests or indications;
(c) The Committee may recommend to the General Assembly to request the Secretary-General to undertake on its behalf studies on specific issues relating to the rights of
the child;
(d) The Committee may make suggestions and general recommendations based on information received pursuant to articles 44 and 45 of the present Convention. Such
suggestions and general recommendations shall be transmitted to any State Party concerned and reported to the General Assembly, together with comments, if any, from
States Parties.

PART III
Article 46. The present Convention shall be open for signature by all States.
Article 47. The present Convention is subject to ratification. Instruments of ratification shall be deposited with the Secretary-General of the United Nations.
Article 48. The present Convention shall remain open for accession by any State. The instruments of accession shall be deposited with the Secretary-General of the United
Nations.
Article 49
1. The present Convention shall enter into force on the thirtieth day following the date of deposit with the Secretary-General of the United Nations of the twentieth
instrument of ratification or accession.
2. For each State ratifying or acceding to the Convention after the deposit of the twentieth instrument of ratification or accession, the Convention shall enter into force on
the thirtieth day after the deposit by such State of its instrument of ratification or accession.
Article 50
1. Any State Party may propose an amendment and file it with the Secretary-General of the United Nations. The Secretary-General shall thereupon communicate the
proposed amendment to States Parties, with a request that they indicate whether they favour a conference of States Parties for the purpose of considering and voting
upon the proposals. In the event that, within four months from the date of such communication, at least one third of the States Parties favour such a conference, the
Secretary-General shall convene the conference under the auspices of the United Nations. Any amendment adopted by a majority of States Parties present and voting at
the conference shall be submitted to the General Assembly for approval.
2. An amendment adopted in accordance with paragraph 1 of the present article shall enter into force when it has been approved by the General Assembly of the United
Nations and accepted by a two-thirds majority of States Parties.
3. When an amendment enters into force, it shall be binding on those States Parties which have accepted it, other States Parties still being bound by the provisions of the
present Convention and any earlier amendments which they have accepted.
Article 51
1. The Secretary-General of the United Nations shall receive and circulate to all States the text of reservations made by States at the time of ratification or accession.
2. A reservation incompatible with the object and purpose of the present Convention shall not be permitted.
3. Reservations may be withdrawn at any time by notification to that effect addressed to the Secretary-General of the United Nations, who shall then inform all States.
Such notification shall take effect on the date on which it is received by the Secretary-General
Article 52. A State Party may denounce the present Convention by written notification to the Secretary-General of the United Nations. Denunciation becomes effective one
 Labor Law || A2015
year after the date of receipt of the notification by the Secretary-General.
Article 53. The Secretary-General of the United Nations is designated as the depositary of the present Convention.
Article 54. The original of the present Convention, of which the Arabic, Chinese, English, French, Russian and Spanish texts are equally authentic, shall be deposited with
the Secretary-General of the United Nations. In witness thereof the undersigned plenipotentiaries, being duly authorized thereto by their respective Governments, have
signed the present Convention.
_________
1/ The General Assembly, in its resolution 50/155 of 21 December 1995 , approved the amendment to article 43, paragraph 2, of the Convention on the Rights of the Child,
replacing the word ten with the word eighteen. The amendment entered into force on 18 November 2002 when it had been accepted by a two-thirds majority of the
States parties (128 out of 191).

2. Minors under the Constitution Art. II, Sec. 13, Sec. 18; Art. XV, Sec. 3 (2)
CONSTITUTION: Art. II, Sec. 13, 18
Sec. 13. The State recognizes the vital role of the youth in nation-building and shall promote and protect their physical, moral, spiritual, intellectual, and social well-being.
It shall inculcate in the youth patriotism and nationalism, and encourage their involvement in public and civic affairs.
Sec .18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare.

CONSTITUTION: Art. XV, Sec. 3 (2)

Sec. 3(2). The State shall defend: (2) The right of children to assistance, including proper care and nutrition, and special protection from all forms of neglect, abuse, cruelty,
exploitation and other conditions prejudicial to their development

3. Coverage/ definition RA 9231, Sec. 2 par. 3 which amended Sec. 12

R.A. 9231, Sec. 2 par. 3
Sec. 2, par 3. For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age.

a. Child DO No. 65-04 (26 July 2004), Sec. 3 (a)

D.O. No. 65-04, Sec. 3 (a)
Sec. 3 (a). Child refers to any person under 18 years of age.

b. Child labor DO No. 65-04. Sec. 3 (b)

D.O. No. 65-04, Sec. 3 (b)
Sec. 3(b). Child labor refers to any work or economic activity performed by a child that subjects him/her to any form of exploitation or is harmful to his/her health and
safety or physical, mental or psychosocial development.

c. Working child Sec. 3 (c)

D.O. No. 65-04, Sec. 3 (c)
Sec. 3(c). Working Child refers to any child engaged as follows:
i. when the child is below eighteen (18) years of age, in work or economic activity that is not child labor as defined in the immediately preceding sub-paragraph, and
ii. when the child below fifteen (15) years of age, (i) in work where he/she is directly under the responsibility of his/her parents or legal guardian and where only members
of the childs family are employed; or (ii)in public entertainment or information.
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4. Employment of Children 139; RA 7610 as amended by RA 9231 Sec. 12; DOLE DO no. 65-04, Secs. 5, 6 Re. Worst Forms of Child labor
LABOR CODE: Art. 139
Art 139. Minimum employable age.
a. No child below fifteen (15) years of age shall be employed, except when he works directly under the sole responsibility of his parents or guardian, and his employment
does not in any way interfere with his schooling.
b. Any person between fifteen (15) and eighteen (18) years of age may be employed for such number of hours and such periods of the day as determined by the Secretary
of Labor and Employment in appropriate regulations.
c. The foregoing provisions shall in no case allow the employment of a person below eighteen (18) years of age in an undertaking which is hazardous or deleterious in
nature as determined by the Secretary of Labor and Employment.

RA 7610 as amended by RA 9231 Sec. 12

Sec. 12. Employment of Children - Children below fifteen (15) years of age shall not be employed except:
"1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only members of his/her family are employed: Provided,
however, That his/her employment neither endangers his/her life, safety, health, and morals, nor impairs his/her normal development: Provided, further, That the parent
or legal guardian shall provide the said child with the prescribed primary and/or secondary education; or
"2) Where a child's employment or participation in public entertainment or information through cinema, theater, radio, television or other forms of media is essential:
Provided, That the employment contract is concluded by the child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the
approval of the Department of Labor and Employment: Provided, further, That the following requirements in all instances are strictly complied with:
"(a) The employer shall ensure the protection, health, safety, morals and normal development of the child;
"(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration, and the duration
and arrangement of working time; and
"(c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a continuing program for training and skills acquisition
of the child.
"In the above-exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child, a work permit from the Department of
Labor and Employment which shall ensure observance of the above requirements.
"For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age."

D.O. No. 65-04, Sec. 5, 6

Sec. 5. Prohibition on the Employment of Children in Worst Forms of Child Labor No child shall be engaged in the worst forms of child labor. The phrase worst forms of
child labor shall refer to any of the following:
(a) All forms of slavery, as defined under the Anti-trafficking in Persons Act of 2003, or practices similar to slavery such as sale and trafficking of children, debt bondage
and serfdom and forced or compulsory labor, including recruitment children for use in armed conflict.
(b) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances;
(c) The use, procuring or offering of a child for illegal or illicit activities, including the production or trafficking of dangerous drugs or volatile substances prohibited under
existing laws; or
(d) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals of children, such that it:
i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or
iii. Is performed underground, underwater or at dangerous heights; or
iv. Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or
v. Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which requires the manual
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transport of heavy loads; or
vi. Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances, co-agents or processes involving ionizing,
radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise levels or vibrations; or
vii. Is performed under particularly difficult conditions; or
viii. Exposes the child to biological agents such as bacteria, fungi, viruses, protozoa, nematodes and other parasites; or
ix. Involves the manufacture or handling of explosives and other pyrotechnic products.
Sec 6: Prohibition on the Employment of Children in Certain Advertisements No child below 18 years of age shall be employed as a model in any advertisement directly
or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its by-products, gambling or any form of violence or pornography.

5. Hours of Work RA 9231, Sec. 3 on Sec. 12-a; DO no. 65-04, Sec. 3(k)
R.A. 9231, Sec. 3 on Sec. 12-a
Hours of Work of a Working Child. - Under the exceptions provided in Section 12 of this Act, as amended:
"(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week: Provided, That the work shall not be more than four (4)
hours at any given day;
"(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8) hours a day, and in no case beyond forty (40) hours a
week;
"(3) No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the evening and six o'clock in the morning of the following day and no child
fifteen (15) years of age but below eighteen (18) shall be allowed to work between ten o'clock in the evening and six o'clock in the morning of the following day.

D.O. No. 65-04, Sec. 3 (k)

Sec. 3(k). Hours of work include (1) all time during which a child is required to be at a prescribed workplace, and (2) all time during which a child is suffered or permitted
to work. Rest periods of short duration during working hours shall be counted as hours worked.

6. Prohibitions against worst forms of child labor Sec. 3 on Sec. 12-d; Sec. 5 on Sec. 14
R.A. 9231, Sec. 3 on Sec. 12-d
Prohibition Against Worst Forms of Child Labor. - No child shall be engaged in the worst forms of child labor. The phrase "worst forms of child labor" shall refer to any of
the following:
"(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar to slavery such as sale and trafficking of children, debt bondage
and serfdom and forced or compulsory labor, including recruitment of children for use in armed conflict; or
"(2) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances; or
"(3) The use, procuring or offering of a child for illegal or illicit activities, including the production and trafficking of dangerous drugs and volatile substances prohibited
under existing laws; or
"(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals of children, such that it:
"a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
"b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or
"c) Is performed underground, underwater or at dangerous heights; or
"d) Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or
"e) Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which requires the manual
transport of heavy loads; or
"f) Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances, co-agents or processes involving ionizing,
radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise levels, or vibrations; or
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"g) Is performed under particularly difficult conditions; or
"h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans, nematodes and other parasites; or
"i) Involves the manufacture or handling of explosives and other pyrotechnic products.

R.A. 9231, Sec. 5 on Sec. 14

Prohibition on the Employment of Children in Certain Advertisements. - No child shall be employed as a model in any advertisement directly or indirectly promoting
alcoholic beverages, intoxicating drinks, tobacco and its by-products, gambling or any form of violence or pornography.

7. Discrimination 140
LABOR CODE: Art. 140
Art. 140. Prohibition against child discrimination. No employer shall discriminate against any person in respect to terms and conditions of employment on account of his
age.

8. Jurisdiction Sec. 9 on Sec. 16-A

R.A. 9231, Sec. 9 on Sec. 16-A
Jurisdiction - The family courts shall have original jurisdiction over all cases involving offenses punishable under this Act: Provided, That in cities or provinces where there
are no family courts yet, the regional trial courts and the municipal trial courts shall have concurrent jurisdiction depending on the penalties prescribed for the offense
charged.
"The preliminary investigation of cases filed under this Act shall be terminated within a period of thirty (30) days from the date of filing.
"If the preliminary investigation establishes a prima facie case, then the corresponding information shall be filed in court within forty eight (48) hours from the termination
of the investigation.
"Trial of cases under this Act shall be terminated by the court not later than ninety (90) days from the date of filing of information. Decision on said cases shall be rendered
within a period of fifteen (15) days from the date of submission of the case.

C. HOUSEHELPERS/ CAREGIVERS Arts. 141-153; Omnibus Rules, Book III, Rule XIII; Civil Code, Arts. 1689-1699
1. Definition 141, par. 2; Rule XIII, Sec 1 (b)
LABOR CODE: Art. 141, par. 2
Art. 141, par. 2. "Domestic or household service" shall mean service in the employers home which is usually necessary or desirable for the maintenance and enjoyment
thereof and includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers.

Omnibus Rules, Book III, Rule XIII, Sec. 1 (b)

Sec. 1(b). The term "househelper" as used herein is synonymous to the term "domestic servant" and shall refer to any person, whether male or female, who renders
services in and about the employer's home and which services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to
the personal comfort and enjoyment of the employer's family.

2. Coverage 141
LABOR CODE: Art. 141
Art. 141. Coverage. This Chapter shall apply to all persons rendering services in households for compensation.
"Domestic or household service" shall mean service in the employers home which is usually necessary or desirable for the maintenance and enjoyment thereof and
includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers.
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3. Non-Household Work 145

LABOR CODE: Art. 145
Art. 145. Assignment to non-household work. No househelper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower
than that provided for agricultural or non-agricultural workers as prescribed herein.

4. Conditions of Employment 141-152; Civil Code, Arts. 1689-1699

a. Compensation 143, 144; CC, Art. 1689
LABOR CODE: Art. 143, 144
Art. 143. Minimum wage. (a) Househelpers shall be paid the following minimum wage rates:
(1) Sixty pesos (P60.00) a month for housekeepers in Manila, Quezon, Pasay and Caloocan cities and the municipalities of Makati, San Juan, Mandaluyong, Muntinlupa,
Navotas, Malabon, Paraaque, Las Pias, Pasig and Marikina in Rizal province.
(2) Forty-five pesos (P45.00) a month for those in other chartered cities and first class municipalities.
(3) Thirty pesos (P30.00) a month for those in other municipalities.
Art. 144. Minimum Cash Wage. The minimum wage rates prescribed under this Chapter shall be the basic cash wage which shall be paid to the househelpers in addition
to lodging, food and medical attendance.

CIVIL CODE: Art. 1689

Art. 1689. Household service shall always be reasonably compensated. Any stipulation that household service is without compensation shall be void. Such compensation
shall be in addition to the house helper's lodging, food, and medical attendance.

a.1. Time and manner of payment Book III, Rule XIII, Sec. 9
Omnibus Rules, Book III, Rule XIII, Sec. 9
SECTION 9. Time and manner of payment. Wages shall be paid directly to the househelper to whomthey are due at least once a month. No deductions therefrom
shall be made by the employer unless authorized by the househelper himself or by existing laws.

b. Hours of Work CC, Art. 1695

CIVIL CODE: Art. 1695
Art. 1695. House helper shall not be required to work more than ten hours a day. Every house helper shall be allowed four days' vacation each month, with pay.

c. Vacation with pay CC, Art. 1695 (supra)

d. Living quarters, Food, Med. Attendance 148; CC, Art. 1689
LABOR CODE: Art. 148
Art. 148. Board, lodging and medical attendance. The employer shall furnish the househelper free of charge suitable and sanitary living quarters as well as adequate food
and medical attendance.

CIVIL CODE: Art. 1689

Art. 1689. Household service shall always be reasonably compensated. Any stipulation that household service is without compensation shall be void. Such compensation
shall be in addition to the house helper's lodging, food, and medical attendance.
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e. Treatment 147; CC, Art. 1694
LABOR CODE: Art. 147
Art. 147. Treatment of househelpers. The employer shall treat the househelper in a just and humane manner. In no case shall physical violence be used upon the
househelper.

CIVIL CODE: Art. 1694

Art. 1694. The head of the family shall treat the house helper in a just and humane manner. In no case shall physical violence be used upon the house helper.

f. Elem. Education 146; CC, Art. 1691

LABOR CODE: Art. 146
Art. 146. Opportunity for education. If the househelper is under the age of eighteen years, the employer shall give him or her an opportunity for at least elementary
education. The cost of such education shall be part of the househelper's compensation, unless there is a stipulation to the contrary.

CIVIL CODE: Art. 1691

Art. 1691. If the house helper is under the age of eighteen years, the head of the family shall give an opportunity to the house helper for at least elementary education. The
cost of such education shall be a part of the house helper's compensation, unless there is a stipulation to the contrary.

g. Term of contract 142; CC, Art. 1692

LABOR CODE: Art. 142
Art. 142. Contract of domestic service. The original contract of domestic service shall not last for more than two years but it may be renewed for such periods as may be
agreed upon by the parties.

CIVIL CODE: Art. 1692

Art. 1692. No contract for household service shall last for more than two years. However, such contract may be renewed from year to year.

h. Termination
i. Fixed duration 149; CC, Art. 1697

LABOR CODE: Art. 149

Art. 149. Indemnity for unjust termination of services. If the period of household service is fixed, neither the employer nor the househelper may terminate the contract
before the expiration of the term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that of 15
days by way of indemnity.

CIVIL CODE: Art. 1697

Art. 1697. If the period for household service is fixed neither the head of the family nor the house helper may terminate the contract before the expiration of the term,
except for a just cause. If the house helper is unjustly dismissed, he shall be paid the compensation already earned plus that for fifteen days by way of indemnity. If the
house helper leaves without justifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding fifteen days.

ii. Not fixed 150; CC, 1698

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LABOR CODE: Art. 150
Art. 150. Service of termination notice. If the duration of the household service is not determined either by stipulation or by the nature of the service, the employer or the
househelper may give notice to put an end to the relationship five days before the intended termination of the service.

CIVIL CODE: Art. 1698

Art. 1698. If the duration of the household service is not determined either by stipulation or by the nature of the service, the head of the family or the house helper may
give notice to put an end to the service relation, according to the following rules:
(1) If the compensation is paid by the day, notice may be given on any day that the service shall end at the close of the following day;
(2) If the compensation is paid by the week, notice may be given, at the latest on the first business day of the week, that the service shall be terminated at the end of the
seventh day from the beginning of the week;
(3) If the compensation is paid by the month, notice may be given, at the latest, on the fifth day of the month, that the service shall cease at the end of the month.

i. Employment certification 151; CC, Art. 1699

LABOR CODE: Art. 151
Art. 151. Employment certification. Upon the severance of the household service relation, the employer shall give the househelper a written statement of the nature and
duration of the service and his or her efficiency and conduct as househelper.

CIVIL CODE: Art. 1699

Art. 1699. Upon the extinguishment of the service relation, the house helper may demand from the head of the family a written statement on the nature and duration of
the service and the efficiency and conduct of the house helper.

j. Employment Records 152

LABOR CODE: Art. 152
Art. 152. Employment records. The employer may keep such records as he may deem necessary to reflect the actual terms and conditions of employment of his
househelper which the latter shall authenticate by signature or thumbmark upon request of the employer.

k. Funeral Expenses CC, Art. 1696; Book III, Rule XIII, Sec. 16

CIVIL CODE: Art. 1696

Art. 1696. In case of death of the house helper, the head of the family shall bear the funeral expenses if the house helper has no relatives in the place where the head of
the family lives, with sufficient means therefor.

Omnibus Rules, Book III, Rule XIII, Sec. 16

SECTION 16. Funeral expenses. In case of death of the househelper, the employer shall bear thefuneral expenses commensurate to the standards of life of the
deceased.

l. Household work: Non-hazardous work for persons between 15-18 years DO 4-99, Sec. 4
D.O. No. 4-99, Sec. 4
Sec. 4. Applicability of this Guideline to Domestic or Household Service. - Persons between 15 and 18 years of age may be allowed to engage in domestic or household
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service, subject in all cases to the limitations prescribed in Nos. 1 to 5 of Section 3 herein.

**Necessary provisions to understand DO 4-99

D.O. No. 4-99, Sec. 3
SECTION 3. Coverage. - The following work and activities are hereby declared hazardous to persons below 18 years of age without prejudice to Section 14, Article VIII of
Republic Act No. 7610; to DOLE Memorandum Circular No. 2, Series of 1998 (Technical Guidelines for Classifying Hazardous and Non-Hazardous Establishments,
Workplaces and Work Processes) and to other work and activities that may subsequently be declared as such:
1. Work which exposes children to physical, psychological or sexual abuse, such as in:
a. lewd shows (stripteasers, burlesque dancers, and the like) ving climbing
b. cabarets
c. bars (KTV, karaoke bars)
d. dance halls
e. bath houses and massage clinics
f. escort service
g. gambling halls and places
2. Work underground, under water, at dangerous heights or at unguarded heights of two meters and above, or in confined places, such as in:
mining
deep sea fishing/diving
installing and repairing of telephone, telegraph and electrical lines; cable fitters
painting buildings
window cleaning
fruit picking involving climbing
3. Work with dangerous machinery, equipment and tools, or which involves manual handling or transport of heavy loads, such as in:
logging
construction
quarrying
operating agricultural machinery in mechanized farming
metal work and welding
driving or operating heavy equipment such as payloaders, backhoes, bulldozers, cranes, pile driving equipment, trailers, road rollers, tractor lifting appliances
scaffold winches, hoists, excavators and loading machines
operating or setting motor-driven machines such as saws, presses, and wood -working machines
operating power-driven tools such as drills and jack hammers
stevedoring
working in airport hangars
working in warehouses
working in docks
4. Work in unhealthy environment which may expose children to hazardous processes, to temperatures, noise levels or vibrations damaging to their health, to toxic,
corrosive, poisonous, noxious, explosive, flammable and combustible substances or composites, to harmful biological agents, or to other dangerous chemicals including
pharmaceuticals, such as in:
manufacture or handling of pyrotechnics
tanning
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pesticide spraying
blacksmithing, hammersmiths, forging
extracting lard and oil
tiling and greasing of heavy machinery
fiber and plastic preparing
bleaching, dyeing, and finishing of textiles using chemicals
embalming and as undertakers
painting and as finishers in metal craft industries
applying of adhesive/solvent in footwear, handicraft, and woodwork industries
brewing and distilling of alcoholic beverages
recycling of batteries and containers or materials used or contaminated with chemicals
working in abattoirs or slaughterhouses
garbage collecting
handling of animal manure in poultry houses or as fertilizers (compost and other decaying matter included) in farming
working in hospitals or other health care facilities
assisting in laboratories and x-ray work
welding
working in furnaces and kilns
working in discotheques
working in video arcades
5. Work under particularly difficult conditions such as work for long hours or during the night, or work where the child is unreasonably confined to the premises of the
employer.

D. HOMEWORKERS
1. Coverage and Regulation 153-155; DO No. 5, DOLE, February 4, 1992, now Book III, Rule XIV, Sec. 1
LABOR CODE: Art. 153-155
Article 153. Regulations of industrial homework. The employment of industrial homeworkers and field personnel shall be regulated by the Government through
appropriate regulations issued by the Secretary of Labor and Employment to ensure the general welfare and protection of homeworkers and field personnel and the
industries employing them.
Article 154. Regulations of Secretary of Labor and Employment. The regulations or orders to be issued pursuant to this Chapter shall be designed to assure the average
employee of an undertaking the minimum terms and conditions of employment applicable to the industrial homeworkers or field personnel involved.
Article 155. Distribution of homework. For purposes of this Chapter, the "employer" of homeworkers includes any person, natural or artificial, who for his account or
benefit or on behalf of any person residing outside the country, directly or indirectly, or through any employee, agent, contractor, sub-contractor or any other person:
(1) Delivers, or causes to be delivered, any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of
or distributed in accordance with his directions; or
(2) Sells any goods, articles or materials for the purpose of having the same processed or fabricated in or about a home and then rebuys them after such processing or
fabrication, either himself or through some other person.

D.O. No. 5, Sec. 1

Sec. 1. General statement on coverage. This Rule shall apply to any person who performs industrial homework for an employer, contractor or sub-contractor.
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2. Definition Sec. 2, DO no. 5

D.O. No. 5, Sec. 2
Section 2. Definitions. As used in this Rule, the following terms shall have the meanings indicated hereunder:
(a) Industrial Homework is a system of production under which work for an employer or contractor is carried out by a homework at his/her home. Materials may or may
not be furnished by the employer or contractor.
It differs from regular factory production principally in that, it is a decentralized form of production where there is ordinarily very little supervision or regulation of methods
of work.
(b) Industrial Homeworker means a worker who is engaged in industrial homework.
(c) Home means any room, house, apartment or other premises used regularly, in whole or in part, as dwelling place, except those situated within the premises or
compound of an employer, contractor or subcontractor and the work performed therein is under the active or personal supervision by or for the latter.
(d) Employer means any natural or artificial person who, for his own account or benefit, or on behalf of any person residing outside the Philippines, directly or indirectly,
or through any employee, agent, contractor, subcontractor, or any other person:
(1) delivers or causes to be delivered any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or
distributed in accordance with his direction; or
(2) sells any goods, articles or materials for the purpose of having such goods or articles processed in or about a home and then repurchases them himself or through
another after such processing.
(e) Contractor or subcontractor means any person who, for the account or benefit of an employer, delivers or causes to be delivered to a homeworker goods or
articles to be processed in or about his home and thereafter to be returned, disposed of or distributed in accordance with the direction of the employer.
(f) Processing means manufacturing, fabricating, finishing, repairing, altering, packing, wrapping or handling in any way connected with the production or preparation of
an article or material.
(g) Cooperative is an association registered under the Cooperative Code of the Philippines.
(h) Department means the Department of Labor and Employment.

3. Registration
a. Homeworkers Organization
b. Employer
4. Conditions of Employment Secs. 6-9
D.O. No. 5, Sec. 6-9
SECTION 6. Payment for homework. Immediately upon receipt of the finished goods or articles, the employer shall pay the homeworker or the contractor or
subcontractor, as the case may be, for the work performed less corresponding homeworkers share of SSS, MEDICARE and ECC premium contributions which shall be
remitted by the contractor/subcontractor or employer to the SSS with the employers share. However, where payment is made to a contractor or subcontractor, the
homeworker shall likewise be paid immediately after the goods or articles have been collected from the workers.
SECTION 7. Standard rates. At the initiative of the Department or upon petition of any interested party, the Secretary of Labor and Employment or his authorized
representative shall establish the standard output rate or standard minimum rate in appropriate orders for the particular work or processing to be performed by the
homeworkers. The standard output rates or piece rates shall be determined through any of the following procedures:
(a) time and motion studies;
(b) an individual/collective agreement between the employer and its workers as approved by the Secretary or his authorized representative;
(c) consultation with representatives of employers and workers organizations in a tripartite conference called by the Secretary.
The time and motion studies shall be undertaken by the Regional Office having jurisdiction over the location of the premise/s used regularly by the homeworker/s.
However, where the job operation or activity is being likewise performed by regular factory workers at the factory or premises if the employer, the time and motion studies
shall be conducted by the Regional Office having jurisdiction over the location of the main undertaking or business of the employer. Piece rates established through time
 Labor Law || A2015
and motion studies conducted at the factory or main undertaking of the employer shall be applicable to the homeworkers performing the same job activity. The standard
piece rate shall be issued by the Regional Office within one month after a request has been made at said office.
Upon request of the Regional Office, the Bureau of Working Conditions shall provide assistance in the conduct of such studies.
Non-compliance with the established standard rates can be the subject of complaint which shall be filed at the Regional Office.
SECTION 8. Deductions. No employer, contractor, or subcontractor shall make any deduction from the homeworkers earnings for the value of materials which have
been lost, destroyed, soiled or otherwise damaged unless the following conditions are met:
(a) the homeworker concerned is clearly shown to be responsible for the loss or damage;
(b) the homeworker is given reasonable opportunity to show cause why deductions should not be made;
(c) the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and
(d) the deduction is made at such rate that the amount deducted does not exceed 20% of the homeworkers earnings in a week.
SECTION 9. Conditions for payment of work.
(a) The employer may require the homeworker to redo the work which has been improperly executed without having to pay the stipulated rate again.
(b) An employer, contractor, or subcontractor need not pay the homeworker for any work which has been done on goods and articles which have been returned for
reasons attributable to the fault of the homeworker.
a. Standard output/minimum rates

a. Standard output/minimum rates Sec. 7 (supra)

b. Wage Deductions Sec. 6 (supra)
c. Deductions for Materials Sec. 8 (supra)
d. Improperly executed work Sec. 9 (supra)
5. Joint and Several Liability of employer/contractor Sec. 11
D.O. No. 5, Sec. 11
Sec. 11. Duties of employer, contractor and subcontractor. Whenever an employer shall contract with another for the performance of the employers work, it shall be
the duty of such employer to provide in such contract that the employees or homeworkers of the contractor and the latters subcontractor shall be paid in accordance with
the provisions of this Rule. In the event that such contractor or subcontractor fails to pay the wages or earnings of his employees or homeworkers as specified in this Rule,
such employer shall be jointly and severally liable with the contractor or subcontractor to the workers of the latter, to the extent that such work is performed under such
contract, in the same manner as if the employees or homeworkers were directly engaged by the employer. The employer, contractor or subcontractor shall assist the
homeworkers in the maintenance of basic safe and healthful working conditions at the homeworkers place of work.

6. Prohibitions Sec. 13
D.O. No. 5, Sec. 13
Sec. 13. Prohibitions for homework. No homework shall be performed on the following: (1) explosives, fireworks and articles of like character; (2) drugs and poisons; and
(3) other articles, the processing of which requires exposure to toxic substances.

7. Enforcement Sec. 10
D.O. No. 5, Sec. 10
Sec. 10. Enforcement Power. The Regional Director shall have the power to order and administer compliance with the provisions of the law and regulations affecting the
terms and conditions of employment of homeworkers and shall have the jurisdiction in cases involving violations of this Rule.
Complaints for violations of labor standards and the terms and conditions of employment involving money claims of homeworkers in an amount of not more than P5,000
per homeworker shall be heard and decided by the Regional Director. He shall have the power to order and administer; after due notice and hearing, compliance with the
provisions of this Rule.
 Labor Law || A2015
In cases where the findings of the Regional Office show that the money claims due a homeworker exceed P5,000, the same shall be endorsed to the appropriate Regional
Arbitration Branch of the National Labor Relations Commission.
Non-compliance with the order issued by the Regional Director can be the subject of prosecution in accordance with the penal provisions of the Labor Code.
In cases of disagreement between the homeworker and the employer, contractor, or subcontractor on a matter falling under this Rule, either party may refer the case to
the Regional Office having jurisdiction over the workplace of the homeworker. The Regional Office shall decide the case within ten (10) working days from receipt of the
case. Its decision shall be final and executory.

9. MEDICAL, DENTAL, AND OCCUPATIONAL SAFETY 156-165; Omnibus Rules, Book IV, Rule I, Secs. 1-10; Rule II, Secs. 1-10
LABOR CODE: Art. 156-165
ARTICLE 156. First-aid treatment. - Every employer shall keep in his establishment such first-aid medicines and equipment as the nature and conditions of work may
require, in accordance with such regulations as the Department of Labor and Employment shall prescribe.
The employer shall take steps for the training of a sufficient number of employees in first-aid treatment.
ARTICLE 157. Emergency medical and dental services. - It shall be the duty of every employer to furnish his employees in any locality with free medical and dental
attendance and facilities consisting of:
(a) The services of a full-time registered nurse when the number of employees exceeds fifty (50) but not more than two hundred (200) except when the employer does not
maintain hazardous workplaces, in which case, the services of a graduate first-aider shall be provided for the protection of workers, where no registered nurse is available.
The Secretary of Labor and Employment shall provide by appropriate regulations, the services that shall be required where the number of employees does not exceed
fifty(50) and shall determine by appropriate order, hazardous workplaces for purposes of this Article;
(b) The services of a full-time registered nurse, a part-time physician and dentist, and an emergency clinic, when the number of employees exceeds two hundred (200) but
not more than three hundred (300); and
(c) The services of a full-time physician, dentist and a full-time registered nurse as well as a dental clinic and an infirmary or emergency hospital with one bed capacity for
every one hundred (100) employees when the number of employees exceeds three hundred
In cases of hazardous workplaces, no employer shall engage the services of a physician or a dentist who cannot stay in the premises of the establishment for at least two
(2) hours, in the case of those engaged on part-time basis, and not less than eight (8) hours, in the case of those employed on full-time basis. Where the undertaking is
non-hazardous in nature, the physician and dentist may be engaged on retainer basis, subject to such regulations as the Secretary of Labor and Employment may prescribe
to insure immediate availability of medical and dental treatment and attendance in case of emergency. (As amended by Presidential Decree NO. 570-A, Section 26.)
ARTICLE 158. When emergency hospital not required. - The requirement for an emergency hospital or dental clinic shall not be applicable in case there is a hospital or
dental clinic which is accessible from the employers establishment and he makes arrangement for the reservation therein of the necessary beds and dental facilities for
the use of his employees.
ARTICLE 159. Health program. - The physician engaged by an employer shall, in addition to his duties under this Chapter, develop and implement a comprehensive
occupational health program for the benefit of the employees of his employer.
ARTICLE 160. Qualifications of health personnel. - The physicians, dentists and nurses employed by employers pursuant to this Chapter shall have the necessary training in
industrial medicine and occupational safety and health. The Secretary of Labor and Employment, in consultation with industrial, medical, and occupational safety and
health associations, shall establish the qualifications, criteria and conditions of employment of such health personnel.
ARTICLE 161. Assistance of employer. - It shall be the duty of any employer to provide all the necessary assistance to ensure the adequate and immediate medical and
dental attendance and treatment to an injured or sick employee in case of emergency.

Chapter II: OCCUPATIONAL HEALTH AND SAFETY

ARTICLE 162. Safety and health standards. - The Secretary of Labor and Employment shall, by appropriate orders, set and enforce mandatory occupational safety and
health standards to eliminate or reduce occupational safety and health hazards in all workplaces and institute new, and update existing, programs to ensure safe and
healthful working conditions in all places of employment.
ARTICLE 163. Research. - It shall be the responsibility of the Department of Labor and Employment to conduct continuing studies and research to develop innovative
 Labor Law || A2015
methods, techniques and approaches for dealing with occupational safety and health problems; to discover latent diseases by establishing causal connections between
diseases and work in environmental conditions; and to develop medical criteria which will assure insofar as practicable that no employee will suffer impairment or
diminution in health, functional capacity, or life expectancy as a result of his work and working conditions.
ARTICLE 164. Training programs. - The Department of Labor and Employment shall develop and implement training programs to increase the number and competence of
personnel in the field of occupational safety and industrial health.
ARTICLE 165. Administration of safety and health laws.
(a) The Department of Labor and Employment shall be solely responsible for the administration and enforcement of occupational safety and health laws, regulations and
standards in all establishments and workplaces wherever they may be located; however, chartered cities may be allowed to conduct industrial safety inspections of
establishments within their respective jurisdictions where they have adequate facilities and competent personnel for the purpose as determined by the Department of
Labor and Employment and subject to national standards established by the latter.
(b) The Secretary of Labor and Employment may, through appropriate regulations, collect reasonable fees for the inspection of steam boilers, pressure vessels and pipings
and electrical installations, the test and approval for safe use of materials, equipment and other safety devices and the approval of plans for such materials, equipment and
devices. The fee so collected shall be deposited in the national treasury to the credit of the occupational safety and health fund and shall be expended exclusively for the
administration and enforcement of safety and other labor laws administered by the Department of Labor and Employment.

Omnibus Rules, Book IV, Rule I, Sec. 1-10

Rule I: Medical and Dental Services
SECTION 1. Coverage. This Rule shall apply to all employers, whether operating for profit or not, including the Government and any of its political subdivisions and
government owned or controlled corporations, which employs in any workplace one or more workers.
The development and enforcement of dental standards shall continue to be under the responsibility of the Bureau of Dental Health Services of the Department of Health.
SECTION 2. Definitions. As used in this Rule, the following terms shall have the meanings indicated hereunder unless the context clearly indicates otherwise:
(a) "First-aid treatment" means adequate, immediate and necessary medical and dental attention or remedy given in case of injury or sudden illness suffered by a worker
during employment, irrespective of whether or not such injury or illness is work-connected, before more extensive medical and/or dental treatment can be secured. It does
not include continued treatment or follow-up treatment for an injury or illness.
(b) "Work place" means the office, premises or work site where the workers are habitually employed and shall include the office or place where the workers who have no
fixed or definite work site regularly report for assignment in the course of their employment.
(c) "First-aider" means any person trained and duly certified as qualified to administer first aid by the Philippine National Red Cross or by any other organization accredited
by the former.
SECTION 3. Medicines and facilities. Every employer shall keep in or about his work place the first-aid medicines, equipment and facilities that shall be prescribed by the
Department of Labor and Employment within 5 days from the issuance of these regulations. The list of medicines, equipment and facilities may be revised from time to
time by the Bureau of Working Conditions, subject to the approval of the Secretary of Labor and Employment.
SECTION 4. Emergency medical and dental services. Any employer covered by this Rule shall provide his employees medical and dental services and facilities in the
following cases and manner:
(a) When the number of workers is from 10 to 50 in a work place, the services of a graduate first-aider shall be provided who may be one of the workers in the work place
and who has immediate access to the first-aid medicines prescribed in Section 3 of this Rule.
(b) Where the number of workers exceeds 50 but not more than 200, the services of a fulltime registered nurse shall be provided. However, if the work place is non-
hazardous, the services of a full-time first-aider may be provided if a nurse is not available.
(c) Where the number of workers in a work place exceeds 200 but not more than 300, the services of a full-time registered nurse, a part-time physician and a part-time
dentist, and an emergency clinic shall be provided, regardless of the nature of the undertaking therein. The physician and dentist engaged for such work place shall stay in
the premises for at least two (2) hours a day; Provided, However, that where the establishment has more than one (1) work shift a day, the required two-hour stay shall be
devoted to the work shift which has the biggest number of workers and they shall, in addition to the requirements of this Rule, be subject to call at any time during the
other work shifts to attend to emergency cases.
 Labor Law || A2015
(d) Where the number of workers in a hazardous work place exceeds 300, the services of a full-time nurse, a full-time physician, a full-time dentist, a dental clinic and an
infirmary or emergency hospital with one-bed capacity for every 100 workers shall be provided. The physician and dentist shall stay in the premises of the work place for at
least eight (8) hours a day; Provided, However, that where the work place has more than one (1) work shift a day, they shall be at work place during the work shift which
has the biggest number of workers and they shall be subject to call at anytime during the other work shifts to attend to emergency cases. Where the undertaking in such a
work place is non-hazardous in nature, the employer may engage the services of a part-time physician and a part-time dentist who shall have the same responsibilities as
those provided in sub-section (c) of this Section, and shall engage the services of a full-time registered nurse.
(e) In all work places where there are more than one (1) work shift in a day, the employer shall, in addition to the requirements of this Rule, provide the services of a full-
time firstaider for each workshift.
SECTION 5. Emergency hospital. An employer need not put up an emergency hospital or dental clinic in the work place as required in these regulations where there is a
hospital or dental clinic which is not more than five (5) kilometers away from the work place if situated in any urban area or which can be reached by motor vehicle in
twenty-five (25) minutes of travel, if situated in a rural area and the employer has facilities readily available for transporting a worker to the hospital or clinic in case of
emergency: Provided, That the employer shall enter into a written contract with the hospital or dental clinic for the use thereof in the treatment of workers in case of
emergency.
SECTION 6. Training and qualifications of medical and dental personnel. The health personnel required to be hired by an employer pursuant to the Code and these Rules
shall have the following minimum qualifications:
(a) A first-aider must be able to read and write and must have completed a course in first-aid duly certified by the National Red Cross or any other organization accredited
by the same.
(b) A nurse must have passed the examination given by the Board of Examiners and duly licensed to practice nursing in the Philippines and preferably with at least fifty (50)
hours of training in occupational nursing conducted by the Department of Health, the Institute of Public Health of the University of the Philippines or by any organization
accredited by the former.
(c) A physician, whether permanent or part-time, must have passed the examinations given by the Board of Examiners for physicians, is licensed to practice medicine in the
Philippines, and is preferably a graduate of a training course in occupational medicine conducted by the Bureau of Working Conditions, the Institute of Public Health of the
University of the Philippines or any organization duly accredited by the former.
(d) A dentist, whether permanent or part-time, must have passed the examinations given by the Board of Examiners for dentists, is licensed to practice dentistry in the
Philippines, and preferably has completed a training course in occupational dentistry conducted by the Bureau of Dental Health Services of the Department of Health or
any organization duly accredited by the former.
SECTION 7. Opportunity for training. Nurses, physicians, and dentists employed by covered employers on the date the Code becomes effective and who do not possess
the special training qualifications provided in this Rule may attend the respective training courses pertinent to their field of specialization. The Bureau of Working
Conditions shall initiate the organization and carrying out of appropriate training programs for nurses, physicians and dentists in coordination with the government
agencies or private organizations referred to in the preceding Section.
SECTION 8. Hazardous work places. The Bureau of Working Conditions, shall, with the approval of the Secretary of Labor and Employment, issue from time to time a
detailed list of hazardous work places for purposes of this Rule, in addition to the following:
(a) Where the nature of the work exposes the workers to dangerous environmental elements, contaminations or work conditions including ionizing radiations, chemicals,
fire, flammable substances, noxious components and the like.
(b) Where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea fishing and mechanized
farming.
(c) Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic products.
(d) Where the workers use or are exposed to heavy or power-driven machinery or equipment.
(e) Where the workers use or are exposed to power-driven tools.
SECTION 9. Health program. The physician engaged by an employer pursuant to this Rule shall, in addition to providing medical services to the workers in cases of
emergency, perform among others, the following duties:
(a) Conduct pre-employment medical examination, free of charge, for the proper selection and placement of workers;
 Labor Law || A2015
(b) Conduct free of charge annual physical examination of the workers;
(c) Collaborate closely with the safety and technical personnel of the establishment to assure selection and placement of workers from the standpoint of physical, mental,
physiological and psychological suitability, including investigation of accidents where the probable causes are exposure to occupational health hazards; and
(d) Develop and implement a comprehensive occupational health program for the employees of the establishment. A report shall be submitted annually to the Bureau of
Working
Conditions describing the program established and the implementation thereof.
SECTION 10. Medical and dental records. (a) The employer shall furnish the Bureau of Working Conditions with copies of all contracts of employment of medical
personnel and contracts with hospitals or clinics as provided in Section 5 of this Rule.
(b) The employer shall maintain a record of all medical examinations, treatments and medical activities undertaken.
(c) The employer shall submit reports in such form, and containing such information, as the Bureau of Working Conditions may require from time to time.

Omnibus Rules, Book IV, Rule II, Sec. 1-10

RULE II: Occupational Health and Safety
SECTION 1. General statement on coverage. (a) This Rule shall apply to all establishments, workplaces, and other undertakings, including agricultural enterprises,
whether operated for profit or not, except to: (1) those engaged in land, sea and air transportation: Provided, That their dry docks, garages, hangars, maintenance and
repair shops and offices shall be covered by this Rule and (2) residential places exclusively devoted to dwelling purposes.
(b) Except as otherwise provided herein, all establishments, workplaces and undertakings located in all chartered cities as well as ordinary municipalities shall be subject to
the jurisdiction of the Department of Labor and Employment in respect to the administration and enforcement of safety and health standards.
(c) Chartered cities may be allowed to assume responsibility for technical safety inspection by the Secretary of Labor and Employment upon compliance with such
standards and guidelines as he may promulgate. As used herein, technical safety inspection includes inspection for purposes of safety determination of boilers, pressure
vessels, internal combustion engines, elevators (passenger and freight), dumbwaiters, escalators, and electrical installation in all workplaces.
SECTION 2. General occupational health and safety standards. Every employer covered by this Rule shall keep and maintain his workplace free from work hazards that
are causing or likely to cause physical harm to the workers or damages to property. Subject to the approval of the Secretary of Labor and Employment, the Bureau of
Working Conditions shall, from time to time, issue guidelines for compliance with general occupational health and safety standards.
SECTION 3. Occupational Health and Safety Code; effectivity of existing standards. (a) Within six (6) months from the date of effectivity of this Rule, the Bureau of
Working Conditions shall prepare and adopt an Occupational Health and Safety Code, subject to the approval of the Secretary of Labor and Employment.
(b) Until the final adoption and approval of an Occupational Health and Safety Code as provided herein, existing safety orders issued by the Department of Labor and
Employment shall remain effective and enforceable and shall apply in full force and effect to all employers covered by this Rule.
SECTION 4. Work condition not covered by standards. Any specific standards applicable to a condition, practice, means, method, operation or process shall also apply
to other similar work situations for which no specific standards have been established.
SECTION 5. Training of personnel in safety and health. Every employer shall take steps to train a sufficient number of his supervisors or technical personnel in
occupational safety and health. An employer may observe the following guidelines in the training of his personnel:
(a) In every non-hazardous establishment or workplace having from fifty (50) to four hundred (400) workers each shift, at least one of the supervisors or technical
personnel shall be trained in occupational health and safety and shall be assigned as part-time safety man. Such safetyman shall be the secretary of the safety committee.
(b) In every non-hazardous establishment or workplace having over four hundred (400) workers per shift, at least two of its supervisors shall be trained and a full-time
safetyman shall be provided.
(c) In every hazardous establishment or workplace having from twenty (20) to two hundred (200) workers each shift, at least one of it supervisors or technical man shall be
trained who shall work as part-time safety man. He shall be appointed as secretary of the safety committee therein.
(d) In every hazardous establishment or workplace having over two hundred (200) workers each shift, at least two of its supervisors or technical personnel shall be trained
and one of them shall be appointed full-time safety man and secretary of the safety committee therein.
(e) The employment of a full-time safetyman not be required where the employer enters into a written contract with a qualified consulting organization which shall
develop and carry out his safety and health activities; Provided, That the consultant shall conduct plant visits at least four (4) hours a week and is subject to call anytime to
 Labor Law || A2015
conduct accident investigations and is available during scheduled inspections or surveys by the Secretary of Labor and Employment or his authorized representatives.
The provisions of this Section shall be made mandatory upon orders of the Secretary of Labor and Employment as soon as he is satisfied that adequate facilities on training
in occupational safety and health are available in the Department of Labor and Employment and other public or private entities duly accredited by the Secretary of Labor
and Employment.
SECTION 6. General duties of workers. (a) Every worker shall cooperate with the employer in carrying out the provisions of this Rule. He shall report to his supervisors
any work hazard that he may discover in his workplace, without prejudice to the right of the worker to report the matter to the Regional Office concerned.
(b) Every worker shall make proper use of all safeguards and safety devices furnished in accordance with the provisions of this Rule for his protection and the protection of
others and shall follow all instructions made by the employer in compliance with the provisions of this Rule.
SECTION 7. Duties of other persons. Any person, including builders or contractors, who visits, builds, innovates or installs devices in establishments or workplaces shall
comply with the provisions of this Rule and all regulations issued by the employer in compliance with the provisions of this Rule and other subsequent issuances of the
Secretary of Labor and Employment.
SECTION 8. Administration and enforcement. (a) Every employer shall give to the Secretary of Labor and Employment or his duly authorized representative access to its
premises and records at any time of the day and night when there is work being undertaken therein for the purpose of determining compliance with the provisions of this
Rule.
(b) Every establishment or workplace shall be inspected at least once a year to determine compliance with the provisions of this Rule. Special inspection visits, however,
may be authorized by the Regional Office to investigate accidents, conduct surveys requested by the Bureau of Working Conditions, follow-up inspection,
recommendations or to conduct investigations or inspections upon request of an employer, worker or a labor union in the establishment.
SECTION 9. Research. (a) The Bureau of Working Conditions, on the basis of experiments, studies, and any other information available to it, shall develop criteria dealing
with toxic materials and other harmful substances and conditions which will establish safe exposure levels for various periods of employment. Such studies and researches
may be requested by the Secretary of Labor and Employment through grants, contracts or as priority projects in the programs of nationally recognized research
organizations.
(b) The Bureau of Working Conditions shall conduct continuing studies and surveys of workplaces to study new problems in occupational safety and health including those
created by new technology as well as the motivational and behavioral factors involved therein. The employer shall provide all the necessary assistance and facilities to carry
out these activities.
SECTION 10. Training. (a) The Bureau of Working Conditions shall conduct continuing programs to increase the competence of occupational health and safety personnel
and to keep them informed of the latest trends, practices and technology in accidental prevention.
(b) The Bureau of Working Conditions shall conduct continuing programs of safety personnel in all establishments or workplaces, and for this purpose every employer shall
in accordance with Section 7 hereof take such steps as may be necessary for the participation in such programs of at least two of his supervisors or technical personnel for
every two hundred (200) workers per shift; Provided, That in establishments with less than two hundred (200) workers, at least one shall be assigned to participate in the
training program.
(c) The training may be conducted by the Bureau or any other organization or group of persons accredited by the Secretary of Labor and Employment.
(d) Every training program shall include information on the importance and proper use of adequate safety and health equipment, and government policies and programs in
occupational health and safety.

a. Coverage Book IV, Rule I, Sec. 1

Omnibus Rules, Book IV, Rule I, Sec. 1
Rule I: Medical and Dental Services
SECTION 1. Coverage. This Rule shall apply to all employers, whether operating for profit or not, including the Government and any of its political subdivisions and
government owned or controlled corporations, which employs in any workplace one or more workers.
The development and enforcement of dental standards shall continue to be under the responsibility of the Bureau of Dental Health Services of the Department of Health.

b. First Aid Treatment 156

 Labor Law || A2015
LABOR CODE: Art. 156
ARTICLE 156. First-aid treatment. - Every employer shall keep in his establishment such first-aid medicines and equipment as the nature and conditions of work may
require, in accordance with such regulations as the Department of Labor and Employment shall prescribe.
The employer shall take steps for the training of a sufficient number of employees in first-aid treatment.

c. Emergency Medical and Dental Services

1. When Required 157
LABOR CODE: Art. 157
ARTICLE 157. Emergency medical and dental services. - It shall be the duty of every employer to furnish his employees in any locality with free medical and dental
attendance and facilities consisting of:
(a) The services of a full-time registered nurse when the number of employees exceeds fifty (50) but not more than two hundred (200) except when the employer does not
maintain hazardous workplaces, in which case, the services of a graduate first-aider shall be provided for the protection of workers, where no registered nurse is available.
The Secretary of Labor and Employment shall provide by appropriate regulations, the services that shall be required where the number of employees does not exceed
fifty(50) and shall determine by appropriate order, hazardous workplaces for purposes of this Article;
(b) The services of a full-time registered nurse, a part-time physician and dentist, and an emergency clinic, when the number of employees exceeds two hundred (200) but
not more than three hundred (300); and
(c) The services of a full-time physician, dentist and a full-time registered nurse as well as a dental clinic and an infirmary or emergency hospital with one bed capacity for
every one hundred (100) employees when the number of employees exceeds three hundred
In cases of hazardous workplaces, no employer shall engage the services of a physician or a dentist who cannot stay in the premises of the establishment for at least two
(2) hours, in the case of those engaged on part-time basis, and not less than eight (8) hours, in the case of those employed on full-time basis. Where the undertaking is
non-hazardous in nature, the physician and dentist may be engaged on retainer basis, subject to such regulations as the Secretary of Labor and Employment may prescribe
to insure immediate availability of medical and dental treatment and attendance in case of emergency. (As amended by Presidential Decree NO. 570-A, Section 26.)

2. When Not Required 158

LABOR CODE: Art. 156-165
ARTICLE 158. When emergency hospital not required. - The requirement for an emergency hospital or dental clinic shall not be applicable in case there is a hospital or
dental clinic which is accessible from the employers establishment and he makes arrangement for the reservation therein of the necessary beds and dental facilities for
the use of his employees.

d. Employer Assistance Obligation 161

LABOR CODE: Art. 156-165
ARTICLE 161. Assistance of employer. - It shall be the duty of any employer to provide all the necessary assistance to ensure the adequate and immediate medical and
dental attendance and treatment to an injured or sick employee in case of emergency.

e. Occupational Safety and health standards, training of superv./tech.

1. When Required Book IV, Rule II, Secs. 5 (a) (d)
Omnibus Rules, Book IV, Rule II, Sec. 1-10
RULE II: Occupational Health and Safety
SECTION 5. Training of personnel in safety and health. Every employer shall take steps to train a sufficient number of his supervisors or technical personnel in
occupational safety and health. An employer may observe the following guidelines in the training of his personnel:
 Labor Law || A2015
(a) In every non-hazardous establishment or workplace having from fifty (50) to four hundred (400) workers each shift, at least one of the supervisors or technical
personnel shall be trained in occupational health and safety and shall be assigned as part-time safety man. Such safetyman shall be the secretary of the safety committee.
(d) In every hazardous establishment or workplace having over two hundred (200) workers each shift, at least two of its supervisors or technical personnel shall be trained
and one of them shall be appointed full-time safety man and secretary of the safety committee therein.

2. When Not Required Book IV, Rule II, Sec. 5 (e)

Omnibus Rules, Book IV, Rule II, Sec. 1-10
SECTION 5. Training of personnel in safety and health. Every employer shall take steps to train a sufficient number of his supervisors or technical personnel in
occupational safety and health. An employer may observe the following guidelines in the training of his personnel:
(e) The employment of a full-time safetyman not be required where the employer enters into a written contract with a qualified consulting organization which shall
develop and carry out his safety and health activities; Provided, That the consultant shall conduct plant visits at least four (4) hours a week and is subject to call anytime to
conduct accident investigations and is available during scheduled inspections or surveys by the Secretary of Labor and Employment or his authorized representatives.
The provisions of this Section shall be made mandatory upon orders of the Secretary of Labor and Employment as soon as he is satisfied that adequate facilities on training
in occupational safety and health are available in the Department of Labor and Employment and other public or private entities duly accredited by the Secretary of Labor
and Employment.

g. Enforcement/ DOLE obligations: 162-165

LABOR CODE: Art. 156-165
Chapter II: OCCUPATIONAL HEALTH AND SAFETY
ARTICLE 162. Safety and health standards. - The Secretary of Labor and Employment shall, by appropriate orders, set and enforce mandatory occupational safety and
health standards to eliminate or reduce occupational safety and health hazards in all workplaces and institute new, and update existing, programs to ensure safe and
healthful working conditions in all places of employment.
ARTICLE 163. Research. - It shall be the responsibility of the Department of Labor and Employment to conduct continuing studies and research to develop innovative
methods, techniques and approaches for dealing with occupational safety and health problems; to discover latent diseases by establishing causal connections between
diseases and work in environmental conditions; and to develop medical criteria which will assure insofar as practicable that no employee will suffer impairment or
diminution in health, functional capacity, or life expectancy as a result of his work and working conditions.
ARTICLE 164. Training programs. - The Department of Labor and Employment shall develop and implement training programs to increase the number and competence of
personnel in the field of occupational safety and industrial health.
ARTICLE 165. Administration of safety and health laws.
(a) The Department of Labor and Employment shall be solely responsible for the administration and enforcement of occupational safety and health laws, regulations and
standards in all establishments and workplaces wherever they may be located; however, chartered cities may be allowed to conduct industrial safety inspections of
establishments within their respective jurisdictions where they have adequate facilities and competent personnel for the purpose as determined by the Department of
Labor and Employment and subject to national standards established by the latter.
(b) The Secretary of Labor and Employment may, through appropriate regulations, collect reasonable fees for the inspection of steam boilers, pressure vessels and pipings
and electrical installations, the test and approval for safe use of materials, equipment and other safety devices and the approval of plans for such materials, equipment and
devices. The fee so collected shall be deposited in the national treasury to the credit of the occupational safety and health fund and shall be expended exclusively for the
administration and enforcement of safety and other labor laws administered by the Department of Labor and Employment.

Note: Arts. 166-208: repealed by SSS Law of 1997; Re: Art. 209, see: NHI Law 166-208; Book IV, Rule II, Sec. 8
LABOR CODE: Art. 166-208 (REPEALED)
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Title II: EMPLOYEES COMPENSATION AND STATE INSURANCE FUND
Chapter I: POLICY AND DEFINITIONS
Art. 166. Policy. The State shall promote and develop a tax-exempt employees compensation program whereby employees and their dependents, in the event of work-
connected disability or death, may promptly secure adequate income benefit and medical related benefits.
Art. 167. Definition of terms. As used in this Title, unless the context indicates otherwise:
a. "Code" means the Labor Code of the Philippines instituted under Presidential Decree Numbered four hundred forty-two, as amended.
b. "Commission" means the Employees Compensation Commission created under this Title.
c. "SSS" means the Social Security System created under Republic Act Numbered Eleven hundred sixty-one, as amended.
d. "GSIS" means the Government Service Insurance System created under Commonwealth Act Numbered One hundred eighty-six, as amended.
e. "System" means the SSS or GSIS, as the case may be.
f. "Employer" means any person, natural or juridical, employing the services of the employee.
g. "Employee" means any person compulsorily covered by the GSIS under Commonwealth Act Numbered One hundred eighty-six, as amended, including the
members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual, or any person
compulsorily covered by the SSS under Republic Act Numbered Eleven hundred sixty-one, as amended.
h. "Person" means any individual, partnership, firm, association, trust, corporation or legal representative thereof.
i. "Dependent" means the legitimate, legitimated or legally adopted or acknowledged natural child who is unmarried, not gainfully employed, and not over twenty-
one (21) years of age or over twenty-one (21) years of age provided he is incapacitated and incapable of self-support due to a physical or mental defect which is
congenital or acquired during minority; the legitimate spouse living with the employee and the parents of said employee wholly dependent upon him for regular
support.
j. "Beneficiaries" means the dependent spouse until he/she remarries and dependent children, who are the primary beneficiaries. In their absence, the dependent
parents and subject to the restrictions imposed on dependent children, the illegitimate children and legitimate descendants, who are the secondary beneficiaries:
Provided, That the dependent acknowledged natural child shall be considered as a primary beneficiary when there are no other dependent children who are
qualified and eligible for monthly income benefit.
k. "Injury" means any harmful change in the human organism from any accident arising out of and in the course of the employment.
l. "Sickness" means any illness definitely accepted as an occupational disease listed by the Commission, or any illness caused by employment subject to proof that
the risk of contracting the same is increased by working conditions. For this purpose, the Commission is empowered to determine and approve occupational
diseases and work-related illnesses that may be considered compensable based on peculiar hazards of employment.
m. "Death" means loss of life resulting from injury or sickness.
n. "Disability" means loss or impairment of a physical or mental function resulting from injury or sickness.
o. "Compensation" means all payments made under this Title for income benefits and medical or related benefits.
p. "Income benefit" means all payments made under this Title to the providers of medical care, rehabilitation services and hospital care.
q. "Medical benefit" means all payments made under this Title to the providers of medical care, rehabilitation services and hospital care.
r. "Related benefit" means all payments made under this Title for appliances and supplies.
s. "Appliances" means crutches, artificial aids and other similar devices.
t. "Supplies" means medicine and other medical, dental or surgical items.
u. "Hospital" means any medical facility, government or private, authorized by law, an active member in good standing of the Philippine Hospital Association and
accredited by the Commission.
v. "Physician" means any doctor of medicine duly licensed to practice in the Philippines, an active member in good standing of the Philippine Medical Association and
accredited by the Commission.
w. "Wages" or "Salary", insofar as they refer to the computation of benefits defined in Republic Act No. 1161, as amended, for SSS and Presidential Decree No. 1146,
as amended, for GSIS, respectively, except that part in excess of Three Thousand Pesos.
x. "Monthly salary credit" means the wage or salary base for contributions as provided in Republic Act Numbered Eleven hundred sixty-one, as amended, or the
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wages or salary.
y. "Average monthly salary credit" in the case of the SSS means the result obtained by dividing the sum of the monthly salary credits in the sixty-month period
immediately following the semester of death or permanent disability by sixty (60), except where the month of death or permanent disability falls within eighteen
(18) calendar months from the month of coverage, in which case, it is the result obtained by dividing the sum of all monthly salary credits paid prior to the month
of contingency by the total number of calendar months of coverage in the same period.
z. "Average daily salary credit" in the case of the SSS means the result obtained by dividing the sum of the six (6) highest monthly salary credits in the twelve-month
period immediately preceding the semester of sickness or injury by one hundred eighty (180), except where the month of injury falls within twelve (12) calendar
months from the first month of coverage, in which case it is the result obtained by dividing the sum of all monthly salary credits by thirty (30) times the number of
calendar months of coverage in the period.
In the case of the GSIS, the average daily salary credit shall be the actual daily salary or wage, or the monthly salary or wage divided by the actual number of
working days of the month of contingency.
aa. "Quarter" means a period of three (3) consecutive months ending on the last days of March, June, September and December.
bb. "Semester" means a period of two consecutive quarters ending in the quarter of death, permanent disability, injury or sickness.
cc. "Replacement ratio" - The sum of twenty percent and the quotient obtained by dividing three hundred by the sum of three hundred forty and the average
monthly salary credit.
dd. "Credited years of service" - For a member covered prior to January, 1975, nineteen hundred seventy-five minus the calendar year of coverage, plus the number of
calendar years in which six or more contributions have been paid from January, 1975 up to the calendar year containing the semester prior to the contingency. For
a member covered on or after January, 1975, the number of calendar years in which six or more contributions have been paid from the year of coverage up to the
calendar year containing the semester prior to the contingency.
ee. "Monthly income benefit" means the amount equivalent to one hundred fifteen percent of the sum of the average monthly salary credit multiplied by the
replacement ratio, and one and a half percent of the average monthly salary credit for each credited year of service in excess of ten years: Provided, That the
monthly income benefit shall in no case be less than two hundred fifty pesos.
Chapter II: COVERAGE AND LIABILITY
Art. 168. Compulsory coverage. Coverage in the State Insurance Fund shall be compulsory upon all employers and their employees not over sixty (60) years of age:
Provided, That an employee who is over (60) years of age and paying contributions to qualify for the retirement or life insurance benefit administered by the System shall
be subject to compulsory coverage.
Art. 169. Foreign employment. The Commission shall ensure adequate coverage of Filipino employees employed abroad, subject to regulations as it may prescribe.
Art. 170. Effective date of coverage. Compulsory coverage of the employer during the effectivity of this Title shall take effect on the first day of his operation, and that of
the employee, on the date of his employment.
Art. 171. Registration. Each employer and his employees shall register with the System in accordance with its regulations.
Art. 172. Limitation of liability. The State Insurance Fund shall be liable for compensation to the employee or his dependents, except when the disability or death was
occasioned by the employees intoxication, willful intention to injure or kill himself or another, notorious negligence, or otherwise provided under this Title.
Art. 173. Extent of liability. Unless otherwise provided, the liability of the State Insurance Fund under this Title shall be exclusive and in place of all other liabilities of the
employer to the employee, his dependents or anyone otherwise entitled to receive damages on behalf of the employee or his dependents. The payment of compensation
under this Title shall not bar the recovery of benefits as provided for in Section 699 of the Revised Administrative Code, Republic Act Numbered Eleven hundred sixty-one,
as amended, Republic Act Numbered Forty-eight hundred sixty-four as amended, and other laws whose benefits are administered by the System or by other agencies of
the government. (As amended by Presidential Decree No. 1921).
Art. 174. Liability of third party/ies.
a. When the disability or death is caused by circumstances creating a legal liability against a third party, the disabled employee or the dependents, in case of his
death, shall be paid by the System under this Title. In case benefit is paid under this Title, the System shall be subrogated to the rights of the disabled employee or
the dependents, in case of his death, in accordance with the general law.
b. Where the System recovers from such third party damages in excess of those paid or allowed under this Title, such excess shall be delivered to the disabled
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employee or other persons entitled thereto, after deducting the cost of proceedings and expenses of the System.
Art. 175. Deprivation of the benefits. Except as otherwise provided under this Title, no contract, regulation or device whatsoever shall operate to deprive the employee or
his dependents of any part of the income benefits and medical or related services granted under this Title. Existing medical services being provided by the employer shall
be maintained and continued to be enjoyed by their employees.
Chapter III: ADMINISTRATION
Art. 176. Employees Compensation Commission.
a. To initiate, rationalize, and coordinate the policies of the employees compensation program, the Employees Compensation Commission is hereby created to be
composed of five ex-officio members, namely: the Secretary of Labor and Employment as Chairman, the GSIS General Manager, the SSS Administrator, the
Chairman of the Philippine Medical Care Commission, and the Executive Director of the ECC Secretariat, and two appointive members, one of whom shall
represent the employees and the other, the employers, to be appointed by the President of the Philippines for a term of six years. The appointive member shall
have at least five years experience in workmens compensation or social security programs. All vacancies shall be filled for the unexpired term only. (As amended
by Section 19 [c], Executive Order No. 126)
b. The Vice Chairman of the Commission shall be alternated each year between the GSIS General Manager and the SSS Administrator. The presence of four members
shall constitute a quorum. Each member shall receive a per diem of two hundred pesos for every meeting that is actually attended by him, exclusive of actual,
ordinary and necessary travel and representation expenses. In his absence, any member may designate an official of the institution he serves on full-time basis as
his representative to act in his behalf. (As amended by Section 2, Presidential Decree No. 1368)
c. The general conduct of the operations and management functions of the GSIS or SSS under this Title shall be vested in its respective chief executive officers, who
shall be immediately responsible for carrying out the policies of the Commission.
d. The Commission shall have the status and category of a government corporation, and it is hereby deemed attached to the Department of Labor and Employment
for policy coordination and guidance. (As amended by Section 2, Presidential Decree No. 1368)
Art. 177. Powers and duties. The Commission shall have the following powers and duties:
a. To assess and fix a rate of contribution from all employers;
b. To determine the rate of contribution payable by an employer whose records show a high frequency of work accidents or occupational diseases due to failure by
the said employer to observe adequate safety measures.
c. To approve rules and regulations governing the processing of claims and the settlement of disputes arising therefrom as prescribed by the System;
d. To initiate policies and programs toward adequate occupational health and safety and accident prevention in the working environment, rehabilitation other than
those provided for under Article 190 hereof, and other related programs and activities, and to appropriate funds therefor; (As amended by Section 3, Presidential
Decree No. 1368
e. To make the necessary actuarial studies and calculations concerning the grant of constant help and income benefits for permanent disability or death and the
rationalization of the benefits for permanent disability and death under the Title with benefits payable by the System for similar contingencies: Provided, That the
Commission may upgrade benefits and add new ones subject to approval of the President: and Provided, further, That the actuarial stability of the State Insurance
Fund shall be guaranteed: Provided, finally, That such increases in benefits shall not require any increases in contribution, except as provided for in paragraph (b)
hereof; (As amended by Section 3, Presidential Decree No. 1641)
f. To appoint the personnel of its staff, subject to civil service law and rules, but exempt from WAPCO law and regulations;
g. To adopt annually a budget of expenditures of the Commission and its staff chargeable against the State Insurance Fund: Provided, That the SSS and GSIS shall
advance on a quarterly basis, the remittances of allotment of the loading fund for the Commissions operational expenses based on its annual budget as duly
approved by the Department of Budget and Management; (As amended by Section 3, Presidential Decree No. 1921)
h. To have the power to administer oath and affirmation, and to issue subpoena and subpoena duces tecum in connection with any question or issue arising from
appealed cases under this Title;
i. To sue and be sued in court;
j. To acquire property, real or personal, which may be necessary or expedient for the attainment of the purposes of this Title;
k. To enter into agreements or contracts for such services and as may be needed for the proper, efficient and stable administration of the program;
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l. To perform such other acts as it may deem appropriate for the attainment of the purposes of the Commission and proper enforcement of the provisions of this
Title. (As amended by Section 18, Presidential Decree No. 850)
Art. 178. Management of funds. All revenues collected by the System under this Title shall be deposited, invested, administered and disbursed in the same manner and
under the same conditions, requirements and safeguards as provided by Republic Act Numbered eleven hundred sixty-one, as amended, with regard to such other funds as
are thereunder being paid to or collected by the SSS and GSIS, respectively: Provided, That the Commission, SSS and GSIS may disburse each year not more than twelve
percent of the contribution and investment earnings collected for operational expenses, including occupational health and safety programs, incidental to the carrying out
of this Title.
Art. 179. Investment of funds. Provisions of existing laws to the contrary notwithstanding, all revenues as are not needed to meet current operational expenses under this
Title shall be accumulated in a fund to be known as the State Insurance Fund, which shall be used exclusively for payment of the benefits under this Title, and no amount
thereof shall be used for any other purpose. All amounts accruing to the State Insurance Fund, which is hereby established in the SSS and GSIS, respectively, shall be
deposited with any authorized depository bank approved by the Commission, or invested with due and prudent regard for the liquidity needs of the System.(As amended
by Section 4, Presidential Decree No. 1368)
Art. 180. Settlement of claims. The System shall have original and exclusive jurisdiction to settle any dispute arising from this Title with respect to coverage, entitlement to
benefits, collection and payment of contributions and penalties thereon, or any other matter related thereto, subject to appeal to the Commission, which shall decide
appealed cases within twenty (20) working days from the submission of the evidence.
Art. 181. Review. Decisions, orders or resolutions of the Commission may be reviewed on certiorari by the Supreme Court on question of law upon petition of an aggrieved
party within ten (10) days from notice thereof.
Art. 182. Enforcement of decisions.
a. Any decision, order or resolution of the Commission shall become final and executory if no appeal is taken therefrom within ten (10) days from notice thereof. All
awards granted by the Commission in cases appealed from decisions of the System shall be effected within fifteen days from receipt of notice.
b. In all other cases, decisions, orders and resolutions of the Commission which have become final and executory shall be enforced and executed in the same manner
as decisions of the Court of First Instance, and the Commission shall have the power to issue to the city or provincial sheriff or to the sheriff whom it may appoint,
such writs of execution as may be necessary for the enforcement of such decisions, orders or resolutions, and any person who shall fail or refuse to comply
therewith shall, upon application by the Commission, be punished by the proper court for contempt.
Chapter IV: CONTRIBUTIONS
Art. 183. Employers contributions.
a. Under such regulations as the System may prescribe, beginning as of the last day of the month when an employees compulsory coverage takes effect and every
month thereafter during his employment, his employer shall prepare to remit to the System a contribution equivalent to one percent of his monthly salary credit.
b. The rate of contribution shall be reviewed periodically and subject to the limitations herein provided, may be revised as the experience in risk, cost of
administration and actual or anticipated as well as unexpected losses, may require.
c. Contributions under this Title shall be paid in their entirety by the employer and any contract or device for the deductions of any portion thereof from the wages
or salaries of the employees shall be null and void.
d. When a covered employee dies, becomes disabled or is separated from employment, his employers obligation to pay the monthly contribution arising from that
employment shall cease at the end of the month of contingency and during such months that he is not receiving wages or salary.
Art. 184. Government guarantee. The Republic of the Philippines guarantees the benefits prescribed under this Title, and accepts general responsibility for the solvency of
the State Insurance Fund. In case of any deficiency, the same shall be covered by supplemental appropriations from the national government.
Chapter V: MEDICAL BENEFITS
Art. 185. Medical services. Immediately after an employee contracts sickness or sustains an injury, he shall be provided by the System during the subsequent period of his
disability with such medical services and appliances as the nature of his sickness or injury and progress of his recovery may require, subject to the expense limitation
prescribed by the Commission.
Art. 186. Liability. The System shall have the authority to choose or order a change of physician, hospital or rehabilitation facility for the employee, and shall not be liable
for compensation for any aggravation of the employees injury or sickness resulting from unauthorized changes by the employee of medical services, appliances, supplies,
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hospitals, rehabilitation facilities or physicians.
Art. 187. Attending physician. Any physician attending an injured or sick employee shall comply with all the regulations of the System and submit reports in prescribed
forms at such time as may be required concerning his condition or treatment. All medical information relevant to the particular injury or sickness shall, on demand, be
made available to the employee or the System. No information developed in connection with treatment or examination for which compensation is sought shall be
considered as privileged communication.
Art. 188. Refusal of examination or treatment. If the employee unreasonably refuses to submit to medical examination or treatment, the System shall stop the payment of
further compensation during such time as such refusal continues. What constitutes an unreasonable refusal shall be determined by the System which may, on its own
initiative, determine the necessity, character and sufficiency of any medical services furnished or to be furnished.
Art. 189. Fees and other charges. All fees and other charges for hospital services, medical care and appliances, including professional fees, shall not be higher than those
prevailing in wards of hospitals for similar services to injured or sick persons in general and shall be subject to the regulations of the Commission. Professional fees shall
only be appreciably higher than those prescribed under Republic Act Numbered sixty-one hundred eleven, as amended, otherwise known as the Philippine Medical Care
Act of 1969.
Art. 190. Rehabilitation services.
a. The System shall, as soon as practicable, establish a continuing program, for the rehabilitation of injured and handicapped employees who shall be entitled to
rehabilitation services, which shall consist of medical, surgical or hospital treatment, including appliances if they have been handicapped by the injury, to help
them become physically independent.
b. As soon as practicable, the System shall establish centers equipped and staffed to provide a balanced program of remedial treatment, vocational assessment and
preparation designed to meet the individual needs of each handicapped employee to restore him to suitable employment, including assistance as may be within
its resources, to help each rehabilitee to develop his mental, vocational or social potential.
Chapter VI: DISABILITY BENEFITS
Art. 191. Temporary total disability.
a. Under such regulations as the Commission may approve, any employee under this Title who sustains an injury or contracts sickness resulting in temporary total
disability shall, for each day of such a disability or fraction thereof, be paid by the System an income benefit equivalent to ninety percent of his average daily salary
credit, subject to the following conditions: the daily income benefit shall not be less than Ten Pesos nor more than Ninety Pesos, nor paid for a continuous period
longer than one hundred twenty days, except as otherwise provided for in the Rules, and the System shall be notified of the injury or sickness. (As amended by
Section 2, Executive Order No. 179)
b. The payment of such income benefit shall be in accordance with the regulations of the Commission. (As amended by Section 19, Presidential Decree No. 850)
Art. 192. Permanent total disability.
a. Under such regulations as the Commission may approve, any employee under this Title who contracts sickness or sustains an injury resulting in his permanent
total disability shall, for each month until his death, be paid by the System during such a disability, an amount equivalent to the monthly income benefit, plus ten
percent thereof for each dependent child, but not exceeding five, beginning with the youngest and without substitution: Provided, That the monthly income
benefit shall be the new amount of the monthly benefit for all covered pensioners, effective upon approval of this Decree.
b. The monthly income benefit shall be guaranteed for five years, and shall be suspended if the employee is gainfully employed, or recovers from his permanent total
disability, or fails to present himself for examination at least once a year upon notice by the System, except as otherwise provided for in other laws, decrees,
orders or Letters of Instructions. (As amended by Section 5, Presidential Decree No. 1641)
c. The following disabilities shall be deemed total and permanent:
1. Temporary total disability lasting continuously for more than one hundred twenty days, except as otherwise provided for in the Rules;
2. Complete loss of sight of both eyes;
3. Loss of two limbs at or above the ankle or wrist;
4. Permanent complete paralysis of two limbs;
5. Brain injury resulting in incurable imbecility or insanity; and
6. Such cases as determined by the Medical Director of the System and approved by the Commission.
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d. The number of months of paid coverage shall be defined and approximated by a formula to be approved by the Commission.
Art. 193. Permanent partial disability.
a. Under such regulations as the Commission may approve, any employee under this Title who contracts sickness or sustains an injury resulting in permanent partial
disability shall, for each month not exceeding the period designated herein, be paid by the System during such a disability an income benefit for permanent total
disability.
b. The benefit shall be paid for not more than the period designated in the following schedules:
Complete and permanent No. of Months
loss of the use of
One thumb - 10
One index finger - 8
One middle finger - 6
One ring finger - 5
One little finger - 3
One big toe - 6
One toe - 3
One arm - 50
One hand - 39
One foot - 31
One leg - 46
One ear - 10
Both ears - 20
Hearing of one ear - 10
Hearing of both ears - 50
Sight of one eye - 25
c. A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow shall be considered as a loss of the arm. A loss of an ankle shall be considered as
loss of a foot, and a loss of a knee shall be considered as a loss of the leg. A loss of more than one joint shall be considered as a loss of one-half of the whole finger
or toe: Provided, That such a loss shall be either the functional loss of the use or physical loss of the member. (As amended by Section 7, Presidential Decree No.
1368)
d. In case of permanent partial disability less than the total loss of the member specified in the preceding paragraph, the same monthly income benefit shall be paid
for a portion of the period established for the total loss of the member in accordance with the proportion that the partial loss bears to the total loss. If the result is
a decimal fraction, the same shall be rounded off to the next higher integer.
e. In cases of simultaneous loss of more than one member or a part thereof as specified in this Article, the same monthly income benefit shall be paid for a period
equivalent to the sum of the periods established for the loss of the member or the part thereof. If the result is a decimal fraction, the same shall be rounded off to
the next higher integer.
f. In cases of injuries or illnesses resulting in a permanent partial disability not listed in the preceding schedule, the benefit shall be an income benefit equivalent to
the percentage of the permanent loss of the capacity to work. (As added by Section 7, Presidential Decree No. 1368)
g. Under such regulations as the Commission may approve, the income benefit payable in case of permanent partial disability may be paid in monthly pension or in
lump sum if the period covered does not exceed one year. (As added by Section 7, Presidential Decree No. 1368)
Chapter VII: DEATH BENEFITS
Art. 194. Death.
a. Under such regulations as the Commission may approve, the System shall pay to the primary beneficiaries upon the death of the covered employee under this
Title, an amount equivalent to his monthly income benefit, plus ten percent thereof for each dependent child, but not exceeding five, beginning with the youngest
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and without substitution, except as provided for in paragraph (j) of Article 167 hereof: Provided, however, That the monthly income benefit shall be guaranteed
for five years: Provided, further, That if he has no primary beneficiary, the System shall pay to his secondary beneficiaries the monthly income benefit but not to
exceed sixty months: Provided, finally, That the minimum death benefit shall not be less than fifteen thousand pesos. (As amended by Section 4, Presidential
Decree No. 1921)
b. Under such regulations as the Commission may approve, the System shall pay to the primary beneficiaries upon the death of a covered employee who is under
permanent total disability under this Title, eighty percent of the monthly income benefit and his dependents to the dependents pension: Provided, That the
marriage must have been validly subsisting at the time of disability: Provided, further, That if he has no primary beneficiary, the System shall pay to his secondary
beneficiaries the monthly pension excluding the dependents pension, of the remaining balance of the five-year guaranteed period: Provided, finally, That the
minimum death benefit shall not be less than fifteen thousand pesos. (As amended by Section 4, Presidential Decree No. 1921)
c. The monthly income benefit provided herein shall be the new amount of the monthly income benefit for the surviving beneficiaries upon the approval of this
decree. (As amended by Section 8, Presidential Decree No. 1368)
d. Funeral benefit. - A funeral benefit of Three thousand pesos (P3,000.00) shall be paid upon the death of a covered employee or permanently totally disabled
pensioner. (As amended by Section 3, Executive Order No. 179)
Chapter VIII: PROVISIONS COMMON TO INCOME BENEFITS
Art. 195. Relationship and dependency. All questions of relationship and dependency shall be determined as of the time of death.
Art. 196. Delinquent contributions.
a. An employer who is delinquent in his contributions shall be liable to the System for the benefits which may have been paid by the System to his employees or their
dependents, and any benefit and expenses to which such employer is liable shall constitute a lien on all his property, real or personal, which is hereby declared to
be preferred to any credit, except taxes. The payment by the employer of the lump sum equivalent of such liability shall absolve him from the payment of the
delinquent contribution and penalty thereon with respect to the employee concerned.
b. Failure or refusal of the employer to pay or remit the contribution herein prescribed shall not prejudice the right of the employee or his dependents to the
benefits under this Title. If the sickness, injury, disability or death occurs before the System receives any report of the name of his employee, the employer shall be
liable to the System for the lump sum equivalent to the benefits to which such employee or his dependents may be entitled.
Art. 197. Second injuries. If any employee under permanent partial disability suffers another injury which results in a compensable disability greater than the previous
injury, the State Insurance Fund shall be liable for the income benefit of the new disability: Provided, That if the new disability is related to the previous disability, the
System shall be liable only for the difference in income benefits.
Art. 198. Assignment of benefits. No claim for compensation under this Title is transferable or liable to tax, attachment, garnishment, levy or seizure by or under any legal
process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the employee to the System.
Art. 199. Earned benefits. Income benefits shall, with respect to any period of disability, be payable in accordance with this Title to an employee who is entitled to receive
wages, salaries or allowances for holidays, vacation or sick leaves and any other award of benefit under a collective bargaining or other agreement.
Art. 200. Safety devices. In case the employees injury or death was due to the failure of the employer to comply with any law or to install and maintain safety devices or to
take other precautions for the prevention of injury, said employer shall pay the State Insurance Fund a penalty of twenty-five percent (25%) of the lump sum equivalent of
the income benefit payable by the System to the employee. All employers, specially those who should have been paying a rate of contribution higher than required of them
under this Title, are enjoined to undertake and strengthen measures for the occupational health and safety of their employees.
Art. 201. Prescriptive period. No claim for compensation shall be given due course unless said claim is filed with the System within three (3) years from the time the cause
of action accrued. (As amended by Section 5, Presidential Decree No. 1921)
Art. 202. Erroneous payment.
a. If the System in good faith pays income benefit to a dependent who is inferior in right to another dependent or with whom another dependent is entitled to share,
such payments shall discharge the System from liability, unless and until such other dependent notifies the System of his claim prior to the payments.
b. In case of doubt as to the respective rights of rival claimants, the System is hereby empowered to determine as to whom payments should be made in accordance
with such regulations as the Commission may approve. If the money is payable to a minor or incompetent, payment shall be made by the System to such person
or persons as it may consider to be best qualified to take care and dispose of the minors or incompetents property for his benefit.
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Art. 203. Prohibition. No agent, attorney or other person pursuing or in charge of the preparation or filing of any claim for benefit under this Title shall demand or charge
for his services any fee, and any stipulation to the contrary shall be null and void. The retention or deduction of any amount from any benefit granted under this Title for
the payment of fees for such services is prohibited. Violation of any provision of this Article shall be punished by a fine of not less than five hundred pesos nor more than
five thousand pesos, or imprisonment for not less than six months nor more than one year, or both, at the discretion of the court.
Art. 204. Exemption from levy, tax, etc. All laws to the contrary notwithstanding, the State Insurance Fund and all its assets shall be exempt from any tax, fee, charge, levy,
or customs or import duty and no law hereafter enacted shall apply to the State Insurance Fund unless it is provided therein that the same is applicable by expressly stating
its name.
Chapter IX: RECORDS, REPORTS AND PENAL PROVISIONS
Art. 205. Record of death or disability.
a. All employers shall keep a logbook to record chronologically the sickness, injury or death of their employees, setting forth therein their names, dates and places of
the contingency, nature of the contingency and absences. Entries in the logbook shall be made within five days from notice or knowledge of the occurrence of the
contingency. Within five days after entry in the logbook, the employer shall report to the System only those contingencies he deems to be work-connected
b. All entries in the employers logbook shall be made by the employer or any of his authorized official after verification of the contingencies or the employees
absences for a period of a day or more. Upon request by the System, the employer shall furnish the necessary certificate regarding information about any
contingency appearing in the logbook, citing the entry number, page number and date. Such logbook shall be made available for inspection to the duly authorized
representative of the System.
c. Should any employer fail to record in the logbook an actual sickness, injury or death of any of his employees within the period prescribed herein, give false
information or withhold material information already in his possession, he shall be held liable for fifty percent of the lump sum equivalent of the income benefit to
which the employee may be found to be entitled, the payment of which shall accrue to the State Insurance Fund.
d. In case of payment of benefits for any claim which is later determined to be fraudulent and the employer is found to be a party to the fraud, such employer shall
reimburse the System the full amount of the compensation paid.
Art. 206. Notice of sickness, injury or death. Notice of sickness, injury or death shall be given to the employer by the employee or by his dependents or anybody on his
behalf within five days from the occurrence of the contingency. No notice to the employer shall be required if the contingency is known to the employer or his agents or
representatives.
Art. 207. Penal provisions.
a. The penal provisions of Republic Act Numbered Eleven Hundred Sixty-One, as amended, and Commonwealth Act Numbered One Hundred Eighty-Six, as amended,
with regard to the funds as are thereunder being paid to, collected or disbursed by the System, shall be applicable to the collection, administration and
disbursement of the Funds under this Title. The penal provisions on coverage shall also be applicable.
b. Any person who, for the purpose of securing entitlement to any benefit or payment under this Title, or the issuance of any certificate or document for any purpose
connected with this Title, whether for him or for some other person, commits fraud, collusion, falsification, misrepresentation of facts or any other kind of
anomaly, shall be punished with a fine of not less than five hundred pesos nor more than five thousand pesos and an imprisonment for not less than six months
nor more than one year, at the discretion of the court.
c. If the act penalized by this Article is committed by any person who has been or is employed by the Commission or System, or a recidivist, the imprisonment shall
not be less than one year; if committed by a lawyer, physician or other professional, he shall, in addition to the penalty prescribed herein, be disqualified from the
practice of his profession; and if committed by any official, employee or personnel of the Commission, System or any government agency, he shall, in addition to
the penalty prescribed herein, be dismissed with prejudice to re-employment in the government service.
Art. 208. Applicability. This Title shall apply only to injury, sickness, disability or death occurring on or after January 1, 1975.
Art. 208-A. Repeal. All existing laws, Presidential Decrees and Letters of Instructions which are inconsistent with or contrary to this Decree, are hereby repealed: Provided,
That in the case of the GSIS, conditions for entitlement to benefits shall be governed by the Labor Code, as amended: Provided, however, That the formulas for
computation of benefits, as well as the contribution base, shall be those provided under Commonwealth Act Numbered One Hundred Eighty-Six, as amended by
Presidential Decree No. 1146, plus twenty percent thereof. (As added by Section 9, Presidential Decree No. 1368 [May 1, 1978] and subsequently amended by Section 7,
Presidential Decree No. 1641
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R.A. 8282: SOCIAL SECURITY ACT OF 1997

AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN
AS THE SOCIAL SECURITY LAW.
SECTION 1. Republic Act No. 1161, as amended, otherwise known as the "Social Security Law", is hereby further amended to read as follows:
"SECTION 1. Short Title. - This Act shall be known as the "Social Security Act of 1997."
"SEC. 2. Declaration of Policy. - It is the policy of the Republic of the Philippines to establish, develop, promote and perfect a sound and viable tax-exempt social security
service suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their
beneficiaries against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden. Towards this end,
the State shall endeavor to extend social security protection to workers and their beneficiaries.
"SEC. 3. Social Security System. - (a) To carry out the purposes of this Act, the Social Security System, hereinafter referred to as SSS, a corporate body, with principal place
of business in Metro Manila, Philippines is hereby created. The SSS shall be directed and controlled by a Social Security Commission, hereinafter referred to as Commission,
composed of the Secretary of Labor and Employment or his duly designated undersecretary, the SSS president and seven (7) appointive members, three (3) of whom shall
represent the workers group, at least one of whom shall be a woman; three (3), the employers group, at least one (1) of whom shall be a woman; and one (1), the general
public whose representative shall have adequate knowledge and experience regarding social security, to be appointed by the President of the Philippines. The six (6)
members representing workers and employers shall be chosen from among the nominees of workers and employers organizations, respectively. The Chairman of the
Commission shall be designated by the President of the Philippines from among its members. The term of the appointive members shall be three (3) years: Provided, That
the terms of the first six (6) appointive members shall be one (1), two (2) and three (3) years for every two members, respectively: Provided, further, That they shall
continue to hold office until their successors shall have been appointed and duly qualified. All vacancies, prior to the expiration of the term, shall be filled for the unexpired
term only. The appointive members of the Commission shall receive at least two thousand five hundred pesos (P2,500.00) per diem for each meeting actually attended by
them but not to exceed Ten thousand pesos (P10,000.00) a month:: Provided, That members of the Commission shall also receive a per diem of at least Two thousand five
hundred pesos (P2,500.00) but not to exceed Fifteen thousand pesos (P15,000.00) a month: Provided , further, That said members of the Commission shall also receive
reasonable transportation and representation allowances as may be fixed by the Commission, but not to exceed Ten thousand pesos (P10,000.00) a month.
"(b) The general conduct of the operations and management functions of the SSS shall be vested in the SSS President who shall serve as the chief executive officer
immediately responsible for carrying out the program of the SSS and the policies of the Commission. The SSS President shall be a person who has had previous experience in
the technical and administrative fields related to the purposes of this Act. He shall be appointed by the President of the Philippines and shall receive salary to be fixed by the
Commission with the approval of the President of the Philippines, payable from the funds of the SSS.
"(c) The Commission, upon the recommendation of the SSS President, shall appoint an actuary, and such other personnel as may be deemed necessary, fix their reasonable
compensation, allowances and other benefits, prescribe their duties and establish such methods and procedures as may be necessary to insure the efficient, honest and
economical administration of the provisions and purposes of this Act: Provided, however, That the personnel of the SSS below the rank of Vice-President shall be appointed
by the SSS President: Provided, further, That the personnel appointed by the SSS President, except those below the rank of assistant manager, shall be subject to the
confirmation by the Commission: Provided, further, That the personnel of the SSS shall be selected only from civil service eligibles and be subject to civil service rules and
regulations: Provided, finally, That the SSS shall be exempt from the provisions of Republic Act No. 6758 and Republic Act No. 7430.
"SEC. 4. Powers and Duties of the Commission and SSS. - (a) The Commission. - For the attainment of its main objectives as set forth in Section 2 hereof, the Commission
shall have the following powers and duties:
"(1) To adopt, amend and rescind, subject to the approval of the President of the Philippines, such rules and regulations as may be necessary to carry out the provisions and
purposes of this Act;
"(2) To establish a provident fund for the members which will consist of voluntary contributions of employers and/or employees, self-employed and voluntary members and
their earnings, for the payment of benefits to such members or their beneficiaries, subject to such rules and regulations as it may promulgate and approved by the President
of the Philippines;
"(3) To maintain a provident fund which consists of contributions made by both the SSS and its officials and employees and their earnings, for the payment of benefits to
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such officials and employees or their heirs under such terms and conditions as it may prescribe;
"(4) To approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan amortizations under such terms and conditions as it may
prescribe;
"(5) To authorize cooperatives registered with the cooperative development authority or associations registered with the appropriate government agency to act as
collecting agents of the SSS with respect to their members: Provided, That the SSS shall accredit the cooperative or association: Provided, further, That the persons
authorized to collect are bonded;
"(6) To compromise or release, in whole or in part, any interest, penalty or any civil liability to SSS in connection with the investments authorized under Section 26 hereof,
under such terms and conditions as it may prescribe and approved by the President of the Philippines; and
"(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper and necessary exercise of its powers and duties hereinafter enumerated.
"(b) The Social Security System. - Subject to the provision of Section four (4), paragraph seven (7) hereof, the SSS shall have the following powers and duties:
"(1) To submit annually not later than April 30, a public report to the President of the Philippines and to the Congress of the Philippines covering its activities in the
administration and enforcement of this Act during the preceding year including information and recommendations on broad policies for the development and perfection of
the program of the SSS;
"(2) To require the actuary to submit a valuation report on the SSS benefit program every four (4) years, or more frequently as may be necessary, to undertake the
necessary actuarial studies and calculations concerning increases in benefits taking into account inflation and the financial stability of the SSS, and to provide for feasible
increases in benefits every four (4) years, including the addition of new ones, under such rules and regulations as the Commission may adopt, subject to the approval of the
President of the Philippines: Provided, That the actuarial soundness of the reserve fund shall be guaranteed: Provided, further, That such increases in benefits shall not
require any increase in the rate of contribution;
"(3) To establish offices of the SSS to cover as many provinces, cities and congressional districts, whenever and wherever it may be expedient, necessary and feasible, and to
inspect or cause to be inspected periodically such offices;
"(4) To enter into agreements or contracts for such service and aid, as may be needed for the proper, efficient and stable administration of the SSS;
"(5) To adopt, from time to time, a budget of expenditures including salaries of personnel, against all funds available to the SSS under this Act;
"(6) To set up its accounting system and provide the necessary personnel therefor;
"(7) To require reports, compilations and analyses of statistical and economic data and to make investigation as may be needed for the proper administration and
development of the SSS;
"(8) To acquire and dispose of property, real or personal, which may be necessary or expedient for the attainment of the purposes of this Act;
"(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or private property for the purpose of undertaking housing projects preferably for
the benefit of low-income members and for the maintenance of hospitals and institutions for the sick, aged and disabled, as well as schools for the members and their
immediate families;
"(10) To sue and be sued in court; and
"(11) To perform such other corporate acts as it may deem appropriate for the proper enforcement of this Act.
"SEC. 5. Settlement of Disputes. - (a) Any dispute arising under this Act with respect to coverage, benefits, contributions and penalties thereon or any other matter related
thereto, shall be cognizable by the Commission, and any case filed with respect thereto shall be heard by the Commission, or any of its members, or by hearing officers duly
authorized by the Commission and decided within twenty (20) days after the submission of the evidence. The filing, determination and settlement of disputes shall be
governed by the rules and regulations promulgated by the Commission.
"(b) Appeal to Courts. - Any decision of the Commission, in the absence of an appeal therefrom as herein provided, shall become final and executory fifteen (15) days after
the date of notification, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the
Commission. The Commission shall be deemed to be a party to any judicial action involving any such decision, and may be represented by an attorney employed by the
Commission, or when requested by the Commission, by the Solicitor General or any public prosecutors.
"(c) Court Review. - The decision of the Commission upon any disputed matter may be reviewed both upon the law and the facts by the Court of Appeals. For the purpose of
such review, the procedure concerning appeals from the Regional Trial Court shall be followed as far as practicable and consistent with the purposes of this Act. Appeal
from a decision of the Commission must be taken within fifteen (15) days from notification of such decision. If the decision of the Commission involves only questions of
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law, the same shall be reviewed by the Supreme Court. No appeal bond shall be required. The case shall be heard in a summary manner, and shall take precedence over all
cases, except that in the Supreme Court, criminal cases wherein life imprisonment or death has been imposed by the trial court shall take precedence. No appeal shall act as
a supersedeas or a stay of the order of the Commission unless the Commission itself, or the Court of Appeals or the Supreme Court, shall so order.
"(d) Execution of Decisions. - The Commission may, motu proprio or on motion of any interested party, issue a writ of execution to enforce any of its decisions or awards,
after it has become final and executory, in the same manner as the decision of the Regional Trial Court by directing the city or provincial sheriff or the sheriff whom it may
appoint to enforce such final decision or execute such writ; and any person who shall fail or refuse to comply with such decision, award or writ, after being required to do so
shall, upon application by the Commission pursuant to Rule 71 of the Rules of Court, be punished for contempt.
"SEC. 6. Auditor and Counsel. - (a) The Chairman of the Commission on Audit shall be the ex-officio Auditor of the SSS. He or his representative shall check and audit all the
accounts, funds and properties of the SSS in the same manner and as frequently as the accounts, funds and properties of the government are checked and audited under
existing laws, and he shall have, as far as practicable, the same powers and duties as he has with respect to the checking and auditing of public accounts, funds and
properties in general.
"(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or his representative shall act as legal adviser and counsel thereof.
"SEC. 7. Oaths, Witnesses, and Production of Records. - When authorized by the Commission, an official or employee thereof shall have the power to administer oath and
affirmation, take depositions, certify to official acts, and issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books,
papers, correspondence and other records deemed necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt with
by the Commission in accordance with law.
"SEC. 8. Terms Defined. - For purposes of this Act, the following terms shall, unless the context indicates otherwise, have the following meanings:
"(a) SSS - The Social Security System created by this Act.
"(b) Commission - The Social Security Commission as herein created.
"(c) Employer- Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and
uses the services of another person who is under his orders as regards the employment, except the Government and any of its political subdivisions, branches or
instrumentalities, including corporations owned or controlled by the Government: Provided, That a self-employed person shall be both employee and employer at the same
time.
"(d) Employee - Any person who performs services for an employer in which either or both mental or physical efforts are used and who receives compensation for such
services, where there is an employer-employee relationship: Provided, That a self-employed person shall be both employee and employer at the same time.
"(e) Dependents - The dependents shall be the following:
"(1) The legal spouse entitled by law to receive support from the member;
"(2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not gainfully employed, and has not reached twenty-one (21) years of age, or if
over twenty-one (21) years of age, he is congenitally or while still a minor has been permanently incapacitated and incapable of self-support, physically or mentally; and
"(3) The parent who is receiving regular support from the member.
"(f) Compensation - All actual remuneration for employment, including the mandated cost-of-living allowance, as well as the cash value of any remuneration paid in any
medium other than cash except that part of the remuneration in excess of the maximum salary credit as provided under Section Eighteen of this Act.
"(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the schedule in Section Eighteen of this Act.
"(h) Monthly - The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on
hourly, daily or weekly basis; if on any other basis, monthly shall mean a period of one (1) month.
"(i) Contribution - The amount paid to the SSS by and on behalf of the members in accordance with Section Eighteen of this Act.
"(j) Employment - Any service performed by an employee for his employer except:
"(1) Employment purely casual and not for the purpose of occupation or business of the employer;
"(2) Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines;
"(3) Service performed in the employ of the Philippine Government or instrumentality or agency thereof;
"(4) Service performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality: Provided, however, That this exemption
notwithstanding, any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos
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outside of the Philippines, may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by
their respective civil service retirement systems: Provided, further, That the terms of such agreement shall conform with the provisions of this Act on coverage and amount
of payment of contributions and benefits: Provided, finally, That the provisions of this Act shall be supplementary to any such agreement; and
"(5) Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employees of bona fide independent
contractors shall not be deemed employees of the employer engaging the service of said contractors.
"(k) Beneficiaries - The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted, and illegitimate children, who shall be the
primary beneficiaries of the member: Provided, That the dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or
legally adopted children: Provided, further, That in the absence of the dependent legitimate, legitimated children of the member, his/her dependent illegitimate children
shall be entitled to one hundred percent (100%) of the benefits. In their absence, the dependent parents who shall be the secondary beneficiaries of the member. In the
absence of all the foregoing, any other person designated by the member as his/her secondary beneficiary.
"(l) Contingency - The retirement, death, disability, injury or sickness and maternity of the member.
"(m) Average monthly salary credit - The result obtained by dividing the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency
by sixty (60), or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions
paid in the same period, whichever is greater: Provided, That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose
of computing the average monthly salary credit.
"(n) Average daily salary credit- The result obtained by dividing the sum of the six (6) highest monthly salary credits in the twelve-month period immediately preceding the
semester of contingency by one hundred eighty (180).
"(o) Semester - A period of two (2) consecutive quarters ending in the quarter of contingency.
"(p) Quarter - A period of three (3) consecutive calendar months ending on the last day of March, June, September and December.
"(q) Credited years of service - For a member covered prior to January nineteen hundred and eighty five (1985) minus the calendar year of coverage plus the number of
calendar years in which six (6) or more contributions have been paid from January nineteen hundred and eighty five (1985) up to the calendar year containing the semester
prior to the contingency. For a member covered in or after January nineteen hundred and eighty five (1985), the number of calendar years in which six (6) or more
contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency: Provided, That the Commission may
provide for a different number of contributions in a calendar year for it to be considered as a credited year of service.
"(r) Member - The worker who is covered under Section Nine and Section Nine-A of this Act.
"(s) Self-employed - Any person whose income is not derived from employment, as defined under this Act, as well as those workers enumerated in Section Nine-A hereof.
"(t) Net earnings - Net income before income taxes plus non-cash charges such as depreciation and depletion appearing in the regular financial statement of the issuing or
assuming institution.
"(u) Fixed charges - Recurring expense such as amortization of debt discount or rentals for leased properties, including interest on funded and unfunded debt.
"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers: Provided, That in the case of
domestic helpers, their monthly income shall not be less than One thousand pesos (P1,000.00) a month: Provided, further, That any benefit already earned by the
employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That
private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employers
contribution to his private plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he shall continue his
contribution to such private plan less his contribution to the SSS so that the employers total contribution to his benefit plan and to the SSS shall be the same as his
contribution to his private benefit plan before the compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or improvements in
the benefits to be available under the remaining private plan, which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration,
shall be subject to agreements between the employers and employees concerned: Provided, further, That the private benefit plan which the employer shall continue for his
employees shall remain under the employers management and control unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act shall
be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act.
"(b) Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to
mandatory coverage, may be covered by the SSS on a voluntary basis.
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"(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis.
"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the SSS shall also be compulsory upon such self-employed persons as may be determined by the
Commission under such rules and regulations as it may prescribe, including but not limited to the following:
"1. All self-employed professionals;
"2. Partners and single proprietors of businesses;
"3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term "employee" in Section 8 (d) of this Act;
"4. Professional athletes, coaches, trainers and jockeys; and
"5. Individual farmers and fishermen.
"Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall also be applicable to the covered self-employed persons.
"SEC. 10. Effective Date of Coverage. - Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his
employment: Provided, That the compulsory coverage of the self-employed person shall take effect upon his registration with the SSS.
"SEC. 11. Effect of Separation from Employment. - When an employee under compulsory coverage is separated from employment, his employers contribution on his
account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation, but said employee shall be credited with all
contributions paid on his behalf and entitled to benefits according to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his
right to full benefit.
"SEC. 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed realizes no income in any given month, he shall not be required to pay
contributions for that month. He may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee
member: Provided, That no retroactive payment of contributions shall be allowed other than as prescribed under Section Twenty-two-A hereof.
"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the highest of the following amounts:
"(1) The sum of the following:
"(i) Three hundred pesos (P300.00; plus
"(ii) Twenty percent (20%) of the average monthly salary credit; plus
"(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10) years; or
"(2) Forth percent (40%) of the average monthly salary credit; or
"(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for an aggregate amount of less than sixty (60) months.
"(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand two hundred pesos (P1,200.00) for members with at least ten (10) credited
years of service and Two thousand four hundred pesos (P2,400.00) for those with twenty (20) credited years of service.
"SEC. 12-A. Dependents Pension. - Where monthly pension is payable on account of death, permanent total disability or retirement, dependents pension equivalent to ten
percent (10%) of the monthly pension or Two hundred fifty pesos (P250.00), whichever is higher, shall also be paid for each dependent child conceived on or before the
date of the contingency but not exceeding five (5), beginning with the youngest and without substitution: Provided, That where there are legitimate or illegitimate children,
the former shall be preferred.
SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120) monthly contributions prior to the semester of retirement and who: (1) has
reached the age of sixty (60) years and is already separated from employment or has ceased to be self-employed; or (2) has reached the age of sixty-five (65) years, shall be
entitled for as long as he lives to the monthly pension: Provided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum discounted at
a preferential rate of interest to be determined by the SSS.
"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum
benefit equal to the total contributions paid by him and on his behalf: Provided, That he is separated from employment and is not continuing payment of contributions to
the SSS on his own.
"(c) The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than sixty-five (65) years old. He
shall again be subject to Section Eighteen and his employer to Section Nineteen of this Act.
"(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to receive the monthly pension: Provided, That if he
has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit
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equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependents pension.
"(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the monthly pension computed at the earliest time he could
have retired had he been separated from employment or ceased to be self-employed plus all adjustments thereto; or (2) the monthly pension computed at the time when
he actually retires.
"SEC. 13. Death Benefits. - Upon the death of a member who has paid at least thirty-six (36) monthly contributions prior to the semester of death, his primary beneficiaries
shall be entitled to the monthly pension: Provided, That if he has no primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to
thirty-six (36) times the monthly pension. If he has not paid the required thirty-six (36) monthly contributions, his primary or secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is
higher.
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent total disability of a member who has paid at least thirty-six (36) monthly contributions prior to the
semester of disability, he shall be entitled to the monthly pension: Provided, That if he has not paid the required thirty-six (36) monthly contributions, he shall be entitled to
a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is
higher. A member who (1) has received a lump sum benefit; and (2) is reemployed or has resumed self-employment not earlier than one (1) year from the date of his
disability shall again be subject to compulsory coverage and shall be considered a new member.
"(b) The monthly pension and dependents pension shall be suspended upon the reemployment or resumption of self-employment or the recovery of the disabled member
from his permanent total disability or his failure to present himself for examination at least once a year upon notice by the SSS.
"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to receive the monthly pension:
Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period excluding the dependents pension.
"(d) The following disabilities shall be deemed permanent total:
"1. Complete loss of sight of both eyes;
"2. Loss of two limbs at or above the ankle or wrists;
"3. Permanent complete paralysis of two limbs;
"4. Brain injury resulting to incurable imbecility or insanity; and
"5. Such cases as determined and approved by the SSS.
"(e) If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit
shall be such percentage of the lump sum benefit described in the preceding paragraph with due regard to the degree of disability as the Commission may determine.
"(f) If the disability is permanent total and such disability occurs after thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit
shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule:
COMPLETE
AND PERMANENT NUMBER OF
LOSS OF USE OF MONTHS
One thumb 10
One index finger 8
One middle finger 6
One ring finger 5
One little finger 3
One big toe 6
One hand 39
One arm 50
One foot 31
One leg 46
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One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
Sight of one eye 25
"(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five (75), rounded to the
next higher integer, shall not be additive for distinct, separate and unrelated permanent partial disabilities, but shall be additive for deteriorating and related permanent
partial disabilities to a maximum of one hundred percent (100%), in which case, the member shall be deemed as permanently totally disabled.
"(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for less than twelve (12) months.
"(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions shall be deemed paid for the months during which the
member received partial disability pension: Provided, That such contributions shall be based on his last contribution prior to his disability.
"(j) Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement or death.
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos (P12,000.00) shall be paid, in cash or in kind, to help defray the cost of funeral expenses
upon the death of a member, including permanently totally disabled member or retiree.
"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of sickness
or injury and is confined therefor for more than three (3) days in a hospital or elsewhere with the approval of the SSS, shall, for each day of compensable confinement or a
fraction thereof, be paid by his employer, or the SSS, if such person is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent (90%) of his
average daily salary credit, subject to the following conditions:
"(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year, nor shall any unused portion of the one hundred
twenty (120) days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year;
"(2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same confinement; and
"(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after the start of his confinement unless such
confinement is in a hospital or the employee became sick or was injured while working or within the premises of the employer in which case, notification to the employer is
necessary: Provided, That if the member is unemployed or self-employed, he shall directly notify the SSS of his confinement within five (5) calendar days after the start
thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided, further, That in cases where notification is necessary, the
confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification.
"(b) The compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall be promptly made by the employer every regular
payday or on the fifteenth and last day of each month, and similarly in the case of direct payment by the SSS, for as long as such allowances are due and payable: Provided,
That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee member shall have been exhausted.
"(c) One hundred percent (100%) of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory
proof of such payment and legality thereof: Provided, That the employer has notified the SSS of the confinement within five (5) calendar days after receipt of the
notification from the employee member: Provided, further, That if the notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the
notification from the employee member, said employer shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding
the date of notification to the SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one-year
period immediately preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for benefit or
reimbursement must be filed within one (1) year from the last day of confinement.
"(d) Where the employee member has given the required notification but the employer fails to notify the SSS of the confinement or to file the claim for reimbursement
within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim, such employer shall have no right to recover the corresponding
daily allowance he advanced to the employee member as required in this section.
"(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt thereof: Provided, That should no payment be received by
the employer within one (1) month after the period prescribed herein for adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per
month until paid.
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"(f) The provisions regarding the notification required of the member and the employer as well as the period within which the claim for benefit or reimbursement may be
filed shall apply to all claims filed with the SSS.
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the
semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60)
days or seventy-eight (78) days in case of caesarian delivery, subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance
with the rules and regulations it may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefits
have been received;
"(d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the employee by the employer
upon receipt of satisfactory proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or
without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits
which said employee member would otherwise have been entitled to.
"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits provided in this Act to such persons as may be entitled thereto in accordance with the
provisions of this Act: Provided, That the SSS shall pay the retirement benefits on the day of contingency to qualified members who have submitted the necessary
documents at least six (6) months before: Provided, further, That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino
beneficiary residing in the Philippines, or which is not recognized by the Philippines, shall not be entitled to receive any benefit under this Act: Provided, further, That
notwithstanding the foregoing, where the best interest of the SSS will be served, the Commission may direct payments without regard to nationality or country of
residence: Provided, further, That if the recipient is a minor or a person incapable of administering his own affairs, the Commission shall appoint a representative under
such terms and conditions as it may deem proper: Provided, further, That such appointment shall not be necessary in case the recipient is under the custody of or living with
the parents or spouse of the member in which case the benefits shall be paid to such parents or spouse, as representative payee of the recipient. Such benefits are not
transferable and no power of attorney or other document executed by those entitled thereto in favor of any agent, attorney or any other person for the collection thereof
on their behalf shall be recognized, except when they are physically unable to collect personally such benefits: Provided, further, That in case of death benefits, if no
beneficiary qualifies under this Act, said benefits shall be paid to the legal heirs in accordance with the law of succession.
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All laws to the contrary notwithstanding, the SSS and all its assets and properties, all contributions collected and all
accruals thereto and income or investment earnings therefrom as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee,
charge, or customs or import duty; and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes, fees or charges, and shall not liable to
attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or persons entitled thereto,
except to pay any debt of the member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly revokes the declared policy of the
State in Section 2 hereof granting tax-exemption to the SSS. Any tax assessment imposed against the SSS shall be null and void. (As amended by Sec. 9, P. D. No. 24, S. 1972;
and Sec. 14, P. D. No. 735, S. 1975).
"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in charge of the preparation, filing or pursuing any claim for benefit under this Act shall demand
or charge for his services any fee, and any stipulation to the contrary shall be null and void. The retention or deduction of any amount from any benefit granted under this
Act for the payment of fees for such services is prohibited: Provided, however, That any member of the Philippine Bar who appears as counsel in any case heard by the
Commission shall be entitled to attorneys fees not exceeding ten percent (10%) of the benefits awarded by the Commission, which fees shall not be payable before the
actual payment of the benefits, and any stipulation to the contrary shall be null and void.
"Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred pesos (P500.00) nor more than Five thousand pesos (P5,000.00), or
imprisonment for not less than six (6) months nor more than one (1) year, or both, at the discretion of the court.
"SEC. 18. Employees Contributions. - (a) Beginning as of the last day of the calendar month when an employees compulsory coverage takes effect and every month
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thereafter during his employment, the employer shall deduct and withhold from such employees monthly salary, wage, compensation or earnings, the employees
contribution in an amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the following schedule:

"The foregoing schedule of contribution shall also apply to self-employed and voluntary members.
"The maximum monthly salary credit shall be Nine thousand pesos (P9,000.00) effective January Nineteen hundred and ninety six (1996); Provided, That it shall be increased
by One thousand pesos (P1,000.00) every year thereafter until it shall have reached Twelve thousand pesos (P12,000.00) by Nineteen hundred and ninety nine (1999):
Provided, further, That the minimum and maximum monthly salary credits as well as the rate of contributions may be fixed from time to time by the Commission through
rules and regulations taking into consideration actuarial calculations and rate of benefits, subject to the approval of the President of the Philippines.
"SEC. 19. Employers Contributions. - (a) Beginning as of the last day of the month when an employees compulsory coverage takes effect and every month thereafter during
his employment, his employer shall pay, with respect to such covered employee, the employers contribution in accordance with the schedule indicated in Section Eighteen
of this Act. Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of his employees covered by the SSS or
otherwise recover from them the employers contributions with respect to such employees.
"(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at the end of each calendar quarter
indicating the correct ID number of the employer, the correct names and the SSS numbers of the employees and the total contributions paid for their account during the
quarter.
"SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-employed member shall be determined in accordance with Section
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Eighteen of this Act: Provided, That the monthly earnings declared by the self-employed member at the time of his registration with the SSS shall be considered as his
monthly compensation and he shall pay both the employer and the employee contributions: Provided, further, That the contributions of self-employed persons earning One
thousand pesos (P1,000.00) monthly or below may be reduced by the Commission.
"The monthly earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit, unless he makes another
declaration of his monthly earnings, in which case such latest declaration becomes the new basis of his monthly salary credit.
"SEC. 20. Government Contribution. - As the contribution of the Government to the operation of the SSS, Congress shall annually appropriate out of any funds in the
National Treasury not otherwise appropriated, the necessary sum or sums to meet the estimated expenses of the SSS for each ensuing year. In addition to this contribution,
Congress shall appropriate from time to time such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of the SSS as
disclosed by suitable periodic actuarial studies to be made of the operations of the SSS.
"SEC. 21. Government Guarantee. -- The benefits prescribed in this Act shall not be diminished and to guarantee said benefits the Government of the Republic of the
Philippines accepts general responsibility for the solvency of the SSS.
"SEC. 22. Remittance of Contributions. -- (a) The contributions imposed in the preceding Section shall be remitted to the SSS within the first ten (10) days of each calendar
month following the month for which they are applicable or within such time as the Commission may prescribe. Every employer required to deduct and to remit such
contributions shall be liable for their payment and if any contribution is not paid to the SSS as herein prescribed, he shall pay besides the contribution a penalty thereon of
three percent (3%) per month from the date the contribution falls due until paid. If deemed expedient and advisable by the Commission, the collection and remittance of
contributions shall be made quarterly or semi-annually in advance, the contributions payable by the employees to be advanced by their respective employers: Provided,
That upon separation of an employee, any contribution so paid in advance but not due shall be credited or refunded to his employer.
"(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall be collected by the SSS in the same manner as taxes are
made collectible under the National Internal Revenue Code, as amended. Failure or refusal of the employer to pay or remit the contributions herein prescribed shall not
prejudice the right of the covered employee to the benefits of the coverage.
"The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time the delinquency is known or the assessment is
made by the SSS, or from the time the benefit accrues, as the case may be.
"(c) Should any person, natural or juridical, default in any payment of contributions, the Commission may also collect the same in either of the following ways:
"1. By an action in court, which shall hear and dispose of the case in preference to any other civil action; or
"2. By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and personal property of the debtor. The Sheriffs sale by virtue
of said warrant shall be governed by the same procedure prescribed for executions against property upon judgments by a court of record.
"(d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid during the past three (3) years as of the date
of filing of the action for collection shall be presumed to be the monthly contributions payable by and due from the employer to the SSS for each of the unpaid month,
unless contradicted and overcome by other evidence: Provided, That the SSS shall not be barred from determining and collecting the true and correct contributions due the
SSS even after full payment pursuant to this paragraph, nor shall the employer be relieved of his liability under Section Twenty-eight of this Act.
"SEC. 22-A. Remittance of Contributions of Self-Employed Member. - Self-employed members shall remit their monthly contributions quarterly on such dates and schedules
as the Commission may specify through rules and regulations: Provided, That no retroactive payment of contributions shall be allowed, except as provided in this Section.
"SEC. 23. Method of Collection and Payment. - The SSS shall require a complete and proper collection and payment of contributions and proper identification of the
employer and the employee. Payment may be made in cash, checks, stamps, coupons, tickets, or other reasonable devices that the Commission may adopt.
"SEC. 24. Employment Records and Reports. - (a) Each employer shall immediately report to the SSS the names, ages, civil status, occupations, salaries and dependents of all
his employees who are subject to compulsory coverage: Provided, That if an employee subject to compulsory coverage should die or become sick or disabled or reach the
age of sixty (60) without the SSS having previously received any report or written communication about him from his employer, the said employer shall pay to the SSS
damages equivalent to the benefits to which said employee member would have been entitled had his name been reported on time by the employer to the SSS, except that
in case of pension benefits, the employer shall be liable to pay the SSS damages equivalent to the accumulated pension due as of the date of settlement of the claim or to
the five (5) years pension, including dependents pension: Provided, further, That if the contingency occurs within thirty (30) days from the date of employment, the
employer shall be relieved of his liability for damages: Provided, further, That any person or entity engaging the services of an independent contractor shall be subsidiarily
liable with such contractor for any civil liability incurred by the latter under this Act: Provided, finally, That the same person or entity engaging the services of an
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independent contractor shall require such contractor to post a surety bond to guarantee the payment of the workers benefits.
"(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS contributions which are less than those required in this
Act or fail to remit any contribution due prior to the date of contingency, resulting in a reduction of benefits, the employer shall pay to the SSS damages equivalent to the
difference between the amount of benefit to which the employee member or his beneficiary is entitled had the proper contributions been remitted to the SSS and the
amount payable on the basis of contributions actually remitted: Provided, That if the employee member or his beneficiary is entitled to pension benefits, damages shall be
equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years pension, whichever is higher, including dependents pension.
"In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable for the corresponding unremitted contributions and
penalties thereon.
"(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member, as the case may be, shall be kept confidential by the SSS except in
compliance with a subpoena duces tecum issued by the Court, shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by
him, shall be presumed correct as to the data and other matters stated therein, unless the necessary corrections to such records and reports have been properly made by
the parties concerned before the right to the benefit being claimed accrues, and shall be made the basis for the adjudication of the claim. If as a result of such adjudication
the SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or with whom another beneficiary is entitled to share, such
payments shall discharge the SSS from liability unless and until such other beneficiary notifies the SSS of his claim prior to the payments.
"(d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe, in addition to an "Annual
Register of New and Separated Employees" which shall be secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of
separation, the names of the persons employed or separated from employment, their SSS numbers, and such other data that the Commission may require and said annual
register shall be submitted to the SSS in the month of January of each year. Such records shall be open for inspection by the SSS or its authorized representatives quarterly
or as often as the SSS may require.
"The SSS may also require each employer to submit, with respect to the persons in his employ, reports needed for the effective administration of this Act.
"(e) Each employer shall require, as a condition to employment, the presentation of a registration number secured by the prospective employee from the SSS in accordance
with such procedure as the SSS may adopt: Provided, That in case of employees who have been assigned registration numbers by virtue of a previous employment, such
numbers originally assigned to them should be used for purposes of this Section: Provided, further, That the issuance of such registration numbers by the SSS shall not
exempt the employer from complying with the provisions of paragraph (a) of this Section.
"(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other similar archival media copies of original SSS records and reports, duly
certified by the official custodian thereof, shall have the same evidentiary value as the originals and be admissible as evidence in all legal proceedings.
"(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business license or permit, require submission of certificate of SSS
coverage and compliance with the provisions of this Act: Provided, That the certification or clearance shall be issued by the SSS within five (5) working days from receipt of
the request.
"SEC. 24-A. Report and Registration of the Self-Employed Member. - Each covered self-employed person shall, within thirty (30) days from the first day he started the
practice of his profession or business operations register and report to the SSS his name, age, civil status, and occupation, average monthly net income and his dependents.
"SEC. 25. Deposits and Disbursements. - All money paid to or collected by the SSS every year under this Act, and all accruals thereto shall be deposited, administered and
disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided, That not more than twelve
percent (12%) of the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for operational expenses such as salaries and wages, supplies
and materials, depreciation and the maintenance of offices of the SSS: Provided, further, That if the expenses in any year are less than the maximum amount permissible,
the difference shall not be availed of as additional expenses in the following years.
"SEC. 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying
out of this Act shall be accumulated in a fund to be known as the "Reserve Fund." Such portions of the Reserve Fund as are not needed to meet the current benefit
obligations thereof shall be known as the "Investment Reserve Fund" which the Commission shall manage and invest with the skill, care, prudence and diligence necessary
under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters would exercise in the conduct of an enterprise of a like
character and with similar aims. Pursuant thereto, and in line with the basic principles of safety, good yield and liquidity, the Commission shall invest the funds to earn an
annual income not less than the average rates of treasury bills or any other acceptable market yield indicator in any or in all of the following:
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"(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or in bonds, securities, promissory notes or other
evidence of indebtedness to which the full faith, credit and unconditional guarantee of the Government of the Philippines is pledged;
"(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or any agencies or instrumentalities to finance domestic
infrastructure projects such as roads, bridges, ports, telecommunications, and other similar projects: Provided, That the instruments issued by an agency or instrumentality
of the government shall be guaranteed by the Government of the Philippines or any government financial institution or acceptable multilateral agency: Provided, further,
That the SSS shall have priority over the revenues of the projects: Provided, finally, That such investments shall not exceed thirty percent (30%) of the Investment Reserve
Fund;
"(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or government corporations with acceptable credit or
guarantee: Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;
"(d) In bonds, securities, promissory notes or other evidence of indebtedness of any bank doing business in the Philippines and in good standing with the Bangko Sentral ng
Pilipinas to finance loans to private corporations doing business in the Philippines, including schools, hospitals, small-and-medium scale industries, cooperatives and non-
governmental organizations, in which case the collaterals or securities shall be assigned to the SSS under such terms and conditions as the Commission may prescribe:
Provided, That in the case of bank deposits, they shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever
is smaller: Provided, further, That said bank shall first have been designated as a depository for this purpose by the Monetary Board of the Bangko Sentral ng Pilipinas:
Provided, finally, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund;
"(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the National Government or financial intermediaries to finance housing
loans of members; and in long-term direct individual or group housing loans giving priority to the low-income groups, up to a maximum of ninety percent (90%) of the
appraised value of the properties to be mortgaged by the borrowers; and
"In short and medium term loans to members such as salary, educational, livelihood, marital, calamity and emergency loans: Provided, That not more than thirty five
percent (35%) of the Investment Reserve Fund at any time shall be invested for housing purposes: Provided, further, That not more than ten percent (10%) of the
Investment Reserve Fund shall be invested in short and medium term loans;
"(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction, improvement and
maintenance of schools and hospitals and their equipment and facilities: Provided, That such investments shall not exceed ten percent (10%) of the Investment Reserve
Fund;
"(g) In real estate property, including shares of stocks involving real estate property, and investment secured by first mortgages on real estate or other collaterals acceptable
to the SSS: Provided, That such projects and investments shall, in the determination of the Commission, redound to the benefit of the SSS, its members, as well as the
general public: Provided, further, That investment in real estate property, including shares of stocks involving real estate property shall not exceed five percent (5%) of the
Investment Reserve Fund: Provided, finally, That investments in other income earning projects and investments secured by first mortgages or other collaterals shall not
exceed twenty five percent (25%) of the Investment Reserve Fund;
"(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime corporation or multilateral institutions to finance domestic projects:
Provided, That the issuing or assuming entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and that during each of any three
(3) including the last two (2) of the five (5) fiscal years next preceding the date of acquisition by the SSS of such bonds, debentures or other evidence of indebtedness, the
net earnings of the issuing or assuming institution available for its fixed charges, as defined in this Act, shall have been not less than one and one-quarter times the total of
its fixed charges for such year: Provided, further, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;
"(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or options or warrants to such stocks or, subject to prior approval of the
Bangko Sentral ng Pilipinas, such other risk management instruments of any prime or solvent corporation or financial institution created or existing under the laws of the
Philippines with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period: Provided, That such
investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;
"(j) In domestic or foreign mutual funds in existence for at least three (3) years; Provided, That such investments shall not exceed twenty percent (20%) of the Investment
Reserve Fund: Provided, further, That investments in foreign mutual funds shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be
increased by one percent (1%) for each succeeding year, but in no case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;
"(k) In foreign currency deposits or triple "A" foreign currency denominated debts, prime and non-speculative equities, and other Bangko Sentral ng Pilipinas approved
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financial instruments or other assets issued in accordance with the existing laws of the countries where such financial instruments are issued: Provided, That these
instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided, further, That the issuing company has proven
track of record of profitability over the last three (3) years and a record of regular dividend pay-out over the same period: Provided, finally, That such investments shall not
exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it
exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;
"(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral institutions: Provided, That such investments shall not exceed thirty
percent (30%) of the Investment Reserve Fund; and
"(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the same intrinsic quality as those enumerated in paragraphs (a) to (l) hereof, subject to the
policies and guidelines which the Commission may formulate.
"No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National Government or to any of its agencies or instrumentalities,
including government-owned or controlled corporations, except as may be allowed under this Act: Provided, That no portion of the Investment Reserve Fund shall be
invested for any purpose or in any instrument, institution or industry over and above the prescribed cumulative ceilings as follows:
40% in private securities
35% in housing
30% in real estate related investments
10% in short and medium-term member loans
30% in government financial institutions and corporations
30% in infrastructure projects
15% in any particular industry
7.5% in foreign-currency denominated investments
"SEC. 26-A. Fund Managers. - As part of its investment operations, the SSS may appoint local or, in the absence thereof, foreign fund managers to manage the Investment
Reserve Fund, as it may deem appropriate.
"SEC. 26-B. Mortgagor Insurance Account. - (a) As part of its investment operations, the SSS shall act as insurer of all or part of its interest on SSS properties mortgaged to
the SSS, or lives of mortgagors whose properties are mortgaged to the SSS. For this purpose, the SSS shall establish a separate account to be known as the "Mortgagors
Insurance Account." All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors Insurance Account. The assets
and liabilities of the Mortgagors Insurance Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all other accounts of the SSS.
Notwithstanding any provision of law to the contrary, the assets held in the Mortgagors Insurance Account shall not be chargeable with the liabilities arising out of any
other business the SSS may conduct but shall be held and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS
under this paragraph.
"(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. The Insurance Commission or its authorized representatives shall make an
examination into the financial condition and methods of transacting business of the SSS at least once in two (2) years, but such examination shall be limited to the insurance
operation of the SSS as authorized under this paragraph and shall not embrace the other operations of the SSS; and the report of said examination shall be submitted to the
Commission and a copy thereof shall be furnished the Office of the President of the Philippines within a reasonable time after the close of the examination: Provided, That
for each examination, the SSS shall pay to the Insurance Commission an amount equal to the actual expense of the Insurance Commission in the conduct of examination,
including the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such examination for the actual time spent in said
examination: Provided, further, That the general law on insurance and the rules and regulations promulgated thereunder shall have suppletory application insofar as it is
not in conflict with this Act and its rules and regulations.
"SEC. 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations of the funds of the SSS and of disbursements thereof and all accounts
of payments made out of said funds. During the month of January of each year, the SSS President shall prepare for submission to the President of the Philippines and to
Congress of the Philippines a report of operations of the SSS during the preceding year, including statistical data on the number of persons covered and benefited, their
occupations and employment status, the duration and amount of benefits paid, the finances of the SSS at the close of the said year, and recommendations. He shall also
cause to be published in two (2) newspapers of general circulation in the Philippines a synopsis of the annual report, showing in particular the status of the finances of the
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SSS and the benefits administered.
"SEC. 28. Penal Clause. - (a) Whoever, for the purpose of causing any payment to be made under this Act, or under an agreement thereunder, where none is authorized to
be paid, shall make or cause to be made false statement or representation as to any compensation paid or received or whoever makes or causes to be made any false
statement of a material fact in any claim for any benefit payable under this Act, or application for loan with the SSS, or whoever makes or causes to be made any false
statement, representation, affidavit or document in connection with such claim or loan, shall suffer the penalties provided for in Article One hundred seventy-two of the
Revised Penal Code.
"(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto with intent to defraud any member,
employer or the SSS, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisoned for not less than six
(6) years and one (1) day nor more than twelve (12) years.
"(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge, except as authorized in this Act or in regulations made
pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to Section Twenty-three hereof by the Commission for the collection or payment of
contributions required herein, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisoned for not less
than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.
"(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed by the Commission for the collection
or payment of any contribution required herein, or uses, sells, lends, or has in his possession any such altered, forged or counterfeited materials, or makes, uses, sells or has
in his possession any such altered, forged, material in imitation of the material used in the manufacture of such stamp, coupon, ticket, book or other device, shall be fined
not less than Five thousand pesos (P5,000.00) non more than Twenty thousand pesos (P20,000.00) or imprisoned for not less than six years (6) and one (1) day nor more
than twelve (12) years, or both, at the discretion of the court.
"(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission, shall be punished by a fine of not
less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more
than twelve (12) years, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or himself, in case of the
covered self-employed or to deduct contributions from the employees compensation and remit the same to the SSS, the penalty shall be a fine of not less Five thousand
pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.
"(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners
shall be liable for the penalties provided in this Act for the offense.
"(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or
misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall
otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code.
"(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employees compensation, fails to remit the said deduction to the SSS
within thirty (30) days from the date they became due, shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties
provided in Article Three hundred fifteen of the Revised Penal Code.
"(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate
cases under the Revised Penal Code: Provided, That such criminal action may be filed by the SSS in the city or municipality where the SSS office is located, if the violation
was committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.
"SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify the members and employers from receiving such government assistance, financial or
otherwise, as may be provided.
"SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions due and payable to the SSS may, within six (6) months from the
effectivity of this Act, remit said contributions or submit a proposal to pay the same in installment within a period of not more than twelve (12) months from the effectivity
of this Act without incurring the prescribed penalty, subject to the implementing rules and regulations which the Commission may prescribe: Provided, That the employer
submits the corresponding collection lists together with the remittance or proposal to pay in installments: Provided, further, That in case the employer fails to remit
contributions within the six-month grace period or defaults in the payment of any amortization provided the approved proposal, the prescribed penalty shall be imposed
from the time the contributions first became due as provided in Section 22 (a) hereof."
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SEC. 2. Separability Clause. - If any provision of this Act is declared invalid, the other provisions not affected thereby shall remain valid.
SEC. 3. Repealing Clause. - All laws, proclamations, executive orders, rules and regulations or parts thereof inconsistent with this Act are hereby repealed, modified or
amended accordingly: Provided, That no person shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act.
SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of
general circulation whichever comes earlier.
Approved: May 01, 1997

LABOR CODE: Art. 209

Title III: MEDICARE
Art. 209. Medical care. The Philippine Medical Care Plan shall be implemented as provided under Republic Act Numbered Sixty-One Hundred Eleven, as amended.

R.A. 7875: National Health Insurance Act of 1995

AN ACT INSTITUTING A NATIONAL HEALTH INSURANCE PROGRAM FOR ALL FILIPINOS AND ESTABLISHING THE PHILIPPINE HEALTH INSURANCE CORPORATION FOR THE
PURPOSE
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SEC. 1. Short Title This Act shall be known as the National Health Insurance Act of 1995

Article I. GUIDING PRINCIPLES

SEC. 2. Declaration of Principles and Policies. Section II, Article XIII of the 1987 Constitution of the Republic of the Philippines declares that the State shall adopt an
integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people
at affordable cost. Priority of the needs of the underprivileged, sick, elderly, disabled, women, and children shall be recognized. Likewise, it shall be the policy of the State
to provide free medical care to paupers.
In the pursuit of a National Health Insurance Program, this Act shall adopt the following guiding principles:
a) Allocation of National Resources for Health The Program shall underscore the importance for government to give priority to health as a strategy for bringing about
faster economic development and improving quality of life;
b) Universality The Program shall provide all citizens with the mechanism to gain financial access to health services, in combination with other government health
programs. The National Health Insurance Program shall give the highest priority to achieving coverage of the entire population with at least a basic minimum package of
health insurance benefits;
c) Equity The Program shall provide for uniform basic benefits. Access to care must be a function of a persons health needs rather than his ability to pay;
d) Responsiveness The Program shall adequately meet the needs for personal health services at various stages of a members life;
e) Social Solidarity The Program shall be guided by community spirit. It must enhance risk sharing among income groups, age groups, and persons of differing health
status, and residing in different geographic areas;
f) Effectiveness The Program shall balance economical use of resources with quality of care;58) Innovation The Program shall adapt to changes in medical technology,
health service organizations, health care provider payment systems, scopes of professional practice, and other trends in the health sector. It must be cognizant of the
appropriate roles and respective strengths of the public and private sectors in health care, including peoples organizations and community-based health care
organizations;
h) Devolution The Program shall be implemented in consultation with local government units (LGUs), subject to the overall policy directions set by the National
Government;
i) Fiduciary Responsibility The Program shall provide effective stewardship, funds management, and maintenance of reserves;
j) Informed Choice The Program shall encourage members to choose from among accredited health care providers. The Corporations local offices shall objectively
appraise its members of the full range of providers involved in the Program and of the services and privileges to which they are entitled as members. This explanation,
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which the members may use as a guide in selecting the appropriate and most suitable provider, shall be given in clear and simple Filipino and in the local languages that is
comprehensible to the member
k) Maximum Community Participation The Program shall build on existing community initiatives for its organization and human resource requirements;
l) Compulsory Coverage All citizens of the Philippines shall be required to enroll in the National Health Insurance Program in order to avoid adverse selection and social
inequity;
m) Cost Sharing The Program shall continuously evaluate its cost sharing schedule to ensure that costs borne by the members are fair and equitable and that the charges
by health care providers are reasonable;
n) Professional Responsibility of Health Care Providers The Program shall assure that all participating health care providers are responsible and accountable in all their
dealings with the Corporation and its members;
o) Public Health Services The Government shall be responsible for providing public health services for all groups such as women, children, indigenous people, displaced
communities and communities in environmentally endangered areas, while the Program shall focus on the provision of personal health services. Preventive and promotive
public health services are essential for reducing the need and spending for personal health services;
p) Quality of Services The Program shall promote the improvement in the quality of health services provided through the institutionalization of programs of quality
assurance at all levels of the health service delivery system. The satisfaction of the community, as well as individual beneficiaries, shall be a determinant of the quality of
service delivery;
q) Cost Containment The Program shall incorporate features of cost containment in its design and operations and provide a viable means of helping the people pay for
health care services; and
r) Care for the Indigent The Government shall be responsible for providing a basic package of needed personal health services to indigents through premium subsidy, or
through direct service provision until such time that the Program is fully implemented.
SEC. 3. General Objectives. This Act seeks to:
a) provide all citizens of the Philippines with the mechanism to gain financial access to health services;
b) create the National Health Insurance Program, hereinafter referred to as the Program, to serve as the means to help the people pay for health care services;59) prioritize
and accelerate the provision of health services to all Filipinos, especially that segment of the population who cannot afford such services; and
d) establish the Philippine Health Insurance Corporation, hereinafter referred to as the Corporation, that will administer the Program at central and local levels.

Article II. DEFINITION OF TERMS

SEC. 4. Definition of Terms For the purpose of this Act, the following terms shall be defined as follows:
a) Beneficiary Any person entitled to health care benefits under this Act.
b) Benefit Package Services that the Program offers to its members.
c) Capitation A payment mechanism where a fixed rate, whether per person, family, household, or group, is negotiated with a health care provider who shall be
responsible for delivering or arranging for the delivery of health care services required by the covered person under the conditions of a health care provider contract.
d) Contribution The amount paid by or in behalf of a member to the Program for coverage, based on salaries or wages in the case of formal sector employees, and on
household earnings and assets, in the case of the self-employed, or on other criteria as may be defined by the Corporation in accordance with the guiding principles set
forth in Article I of this Act.
e) Coverage The entitlement of an individual, as a member or as a dependent, to the benefits of the Program.
f) Dependent The legal dependents of a member are: 1) the legitimate spouse who is not a member; 2) the unmarried and unemployed legitimate, legitimated,
illegitimate, acknowledged children as appearing in the birth certificate; legally adopted or stepchildren below twenty-one (21) years of age; 3) children who are twentyone
(21) years old or above but suffering from congenital disability, either physical or mental, or any disability acquired that renders them totally dependent on the member for
support; 4) the parents who are sixty (60) years old or above whose monthly income is below an amount to be determined by the Corporation in accordance with the
guiding principles set-forth in Article I of this Act.
g) Diagnostic Procedure Any procedure to identify a disease or condition through analysis and examination.
h) Emergency An unforeseen combination of circumstances which calls for immediate action to preserve the life of a person or to preserve the sight of one or both eyes;
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the hearing of one or both ears; or one or two limbs at or above the ankle or wrist.
i) Employee Any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such
services, where there is an employer-employee relationship.
j) Employer A natural or juridical person who employs the services of an employee.
k) Enrollment The process to be determined by the Corporation in order to enlist individuals as members or dependents covered by the Program.
l) Fee for Service A reasonable and equitable health care payment system under which physicians and60 their health care providers receive a payment that does not
exceed their billed charge for each unit of service provided.
m) Global Budget An approach to the purchase of medical services by which health care provider negotiations concerning the costs of providing a specific package of
medical benefits is based solely on a predetermined and fixed budget.
n) Government Service Insurance System The Government Service Insurance System created under Commonwealth Act No. 186, as amended.
o) Health Care Provider Refers to:
1) a health care institution, which is duly licensed and accredited devoted primarily to the maintenance and operation of facilities for health promotion, prevention,
diagnosis, treatment, and care of individuals suffering from illness, disease, injury, disability, or deformity, or in need of obstetrical or other medical and nursing care. It
shall also be construed as any institution, building, or place where there are installed beds, cribs, or bassinets for twentyfour hour use or longer by patients in the
treatment of diseases, injuries, deformities, or abnormal physical and mental states, maternity cases or sanitarial care; or infirmaries, nurseries, dispensaries, and such
other similar names by which they may be designated; or
2) a health care professional, who is any doctor of medicine, nurse, midwife, dentist, or other health care professional or practitioner duly licensed to practice in the
Philippines and accredited by the Corporation; or
3) a health maintenance organization, which is an entity that provides, offers, or arranges for coverage of designated health services needed by plan members for a fixed
prepaid premium; or
4) a community-based health care organization, which is an association of indigenous member of the community organized for the purpose of improving the health status
of that community through preventive, promotive and currative health services.
p) Health Insurance Identification (ID) Card The document issued by the Corporation to members and dependents upon their enrollment to serve as the instrument for
proper identification, eligibility verification, and utilization recording.
q) Indigent A person who has no visible means of income, or whose income is insufficient for the subsistence of his family, as identified the Local Health Insurance Office
and based on specific criteria set by the Corporation in accordance with the guiding principles set forth in Article I of this Act.
r) Inpatient Education Package A set of informational services made available to an individual who is confined in a hospital to afford him with knowledge about his illness
and its treatment, and of the means available, particularly lifestyle changes, to prevent the recurrence or aggravation of such illness and to promote his health in general.
s) Member Any person whose premiums has been regularly paid to the National Health Insurance Program. He may be a paying member, an indigent member, or a
pensioner / retiree members.
t) Means Test A protocol administered at the barangay level to determine the ability of individuals or households to pay varying levels of contributions to the Program,
ranging from the indigent in the community whose contributions should be totally subsidized by government, to those who can afford to subsidize part but not all the
required contributions for the Program.60) Medicare The health insurance program currently being implemented by the Philippine Medical Care Commission. It consists
of:
1) Program I, which covers members of the SSS and GSIS including their legal dependents; and
2) Program II, which is intended for those not covered under Program I.
v) National Health Insurance Program The compulsory health insurance program of the government as established in this Act, which shall provide universal health
insurance coverage and ensure affordable, acceptable, available and accessible health care services for all citizens of the Philippines.
w) Pensioner An SSS or GSIS member who receives pensions therefrom.
x) Personal Health Services Health services in which benefits accrue to the individual person. These are categorized into inpatient and outpatient services.
y) Philippine Medical Care Commission The Philippine Medical Care Commission created under Republic Act No. 6111, as amended.
z) Philippine National Drug Formulary The essential drugs list for the Philippines which is prepared by the
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National Drug Committee of the Department of Health in consultation with experts and specialists from organized professional medical societies, medical academe and the
pharmaceutical industry, and which is updated every year.
aa) Portability the enablement of a member to avail of Program benefits in an area outside the jurisdiction of his Local Health Insurance Office.
bb) Prescription Drug A drug which has been approved by the Bureau of Food and Drugs and which can be dispensed only pursuant to a prescription order from a
physician who is duly licensed to do so.
cc) Public Health Services Services that strengthen preventive and promotive health care through improving conditions in partnership with the community at large. These
include control of communicable and noncommunicable diseases, health promotion, public information and education, water and sanitation, environmental protection
and health-related data collection, surveillance, and outcome monitoring.
dd) Quality Assurance A formal set of activities to review and ensure the quality of services provided. Quality assurance includes quality assessment and corrective
actions to remedy any deficiencies identified in the quality of direct patient, administrative, and support services.
ee) Residence The place where the member actually lives.
ff) Retiree A member of the Program who has reached the age of retirement or who was retired on account of disability.
gg) Self-employed A person who works for himself and is therefore both employee and employer at the same time.
hh) Social Security System The Social Security System created under Republic Act No. 1161, as amended.
ii) Treasury Procedure Any method used to remove the symptoms and cause of a disease.61

Article III. THE NATIONAL HEALTH INSURANCE PROGRAM

SEC. 5. Establishment and Purpose There is hereby created the National Health insurance Program which shall provide health insurance coverage and ensure affordable,
acceptable, available and accessible health care services for all citizens of the Philippines, in accordance with the policies and specific provisions of this Act. This social
insurance program shall serve as the means for the healthy to help pay for the care of the sick and for those who can afford medical care to subsidize those who cannot. It
shall initially consist of Programs I and II or Medicare and be expanded progressively to constitute one universal health insurance program for the entire population. The
Program shall include a sustainable system of funds constitution, collection, management and disbursement for financing the availment of a basic minimum package and
other supplementary packages of health insurance benefits by a progressively expanding proportion of the population. The Program shall be limited to paying for the
utilization of health services by covered beneficiaries or to purchasing health services in behalf of such beneficiaries. It shall be prohibited from providing health care
directly, from buying and dispensing drugs and pharmaceuticals, from employing physicians and other professionals for the purpose of directly rendering care, and from
owning or investing in health care facilities.
SEC. 6 Coverage All citizens of the Philippines shall be covered by the National Health Insurance Program. In accordance with the principles of universality and
compulsory coverage enunciated in Section 2 (b) and 2 (1) hereof, implementation of the Program shall, furthermore, be gradual and phased in over a period of not more
than fifteen (15) years: Provided, That the Program shall not be made compulsory in certain provinces and cities until the Corporation shall be able to ensure that members
in such localities shall have reasonable access to adequate and acceptable health care services.
SEC. 7 Enrollment The Program shall enroll beneficiaries in order for them to be placed under coverage that entitles them to avail of benefits with the assistance of the
financial arrangements provided by the Program.
The process of enrollment shall include the identification of beneficiaries, issuance of appropriate documentation specifying eligibility to benefits, and indicating how
membership was obtained or is being maintained. The enrollment shall proceed in accordance with these specific policies:
a) all persons currently eligible for benefits under Medicare Program I, including SSS and GSIS members, retirees, pensioners and their dependents, shall immediately and
automatically be made members of the National Health Insurance Program;
b) all persons eligible for benefits through health insurance plans established by local governments as part of Program II of Medicare or in accordance with the provisions of
this Act, including indigents members, shall also be enrolled in the Program;
c) all persons eligible for benefits as members of local health insurance plans established by the Corporation in accordance with the implementing rules and regulations of
this Act shall also be deemed to have enrolled in the Program. Enrollment of persons who have no current health insurance coverage shall be given priority by the
Corporation; and
d) all persons eligible for benefits as members of other government initiated health insurance programs, community-based health care organizations, cooperatives, or
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private non-profit health insurance plans shall be enrolled in the Program upon accreditation by the Corporation which shall devise and provide incentives to ensure that
such accredited organizations will benefit from their participation in the Program.
All indigents not enrolled in the Program shall have priority in the use and availment of the services and facilities of government hospitals, health care personnel, and other
health organizations: Provided, however, That such government health care providers shall ensure that said indigents shall subsequently be enrolled in the Program.62EC.
8. Health Insurance ID Card In conjunction with the enrollment provided above, the Corporation, through its local office shall issue a health insurance ID which shall be
used for purposes of identification, eligibility verification, and utilization recording. The issuance of this ID card shall be accompanied by a clear explanation to the enrollee
of his rights, privileges and obligations as a member. A list of health care providers accredited by the Local Health Insurance Office shall likewise be attached thereto.
SEC. 9 Change of Residence A citizen can be under only one Local Health Insurance Office which shall be located in the province or city of his place of residence. A person
who changes residence, becomes temporarily employed, or for other justifiable reasons, is transferred to another locality should inform said Office of such transfer and
subsequently transfer his Program membership.
SEC. 10. Benefit Package Subject to the limitations specified in this Act and as may be determined by the Corporation, the following categories of personal health
services granted to the member or his dependent as medically necessary or appropriate shall include:
a) Inpatient hospital care:
1) room and board;
2) services of health care professionals;
3) diagnostic, laboratory, and other medical examination services;
4) use of surgical or medical equipment and facilities;
5) prescription drugs and biologicals, subject to the limitations stated in Section 37 of this Act;
6) inpatient education packages;
b) Outpatient care:
1) services of health care professionals;
2) diagnostic, laboratory, and other medical examinations services;
3) personal preventive services; and
4) prescription drugs and biologicals, subject to the limitations described in Section 37 of this Act;
c) Emergency and transfer services; and
d) Such other health care services that the Corporation shall determine to be appropriate and cost effective: Provided, That the Program, during its initial phase of
implementation, which shall not be more than five (5) years, shall provide a basic minimum package of benefits which shall de defined according to the following
guidelines;
1) the cost providing said package is such that the available national and local government subsidies for premium payments of indigents are sufficient to extend coverage
to the widest possible population.
2) the initial set of services shall not be less than half of those provided under the current Medicare Program I in terms of overall average cost of claims paid per
beneficiary household per year.
3) the services included are prioritized, first according to its cost effectiveness and, second, according to its potential of providing maximum relief from the financial burden
on the beneficiary: Provided, That in addition62to the basic minimum package, the Program shall provide supplemental health benefit coverage to beneficiaries of
contributory funds, taking into consideration the availability of funds for the purpose from said contributory funds: Provided further, That the Program shall progressively
expand the basic minimum benefit package as the proportion of the population covered reaches targeted milestones so that the same benefits are extended to all
members of the Program within five (5) years after the implementation of this Act. Such expansion will provide for the gradual incorporations of supplementary health
benefits previously extended only to some beneficiaries into the basic minimum package extended to all beneficiaries: and Provided, finally, that in the phased
implementation of this Act, there should be no reduction or interruption in the benefits currently enjoyed by present members of Medicare.
SEC. 11. Excluded Personal Health Services The benefits granted under this Act shall not cover expenses for the services enumerated hereunder except when the
Corporation, after actuarial studies, recommends their inclusion subject to the approval of the Board:
a) non-prescription drugs and devices;
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b) out-patient psychotherapy and counselling for mental disorders;
c) drug and alcohol abuse or dependency treatment;
d) cosmetic surgery;
e) home and rehabilitation services;
f) optometric services;
g) normal obstetrical delivery; and
h) cost-ineffective procedures which shall be defined by the Corporation.
SEC. 12. Entitlement to Benefits A member whose premium contributions for at least three (3) months have been paid within the six (6) months prior to the first day of
his or his dependents availment, shall be entitled to the benefits of the Program: Provided, That such member can show that he contributes thereto with sufficient
regularity, as evidenced in their health insurance ID card: and Provided further, That he is not currently subject to legal penalties as provided for in Section 44 of this Act.
The following need not pay the monthly contributions to be entitled to the Programs benefits:
a) Retirees and pensioners of the SSS and GSIS prior to the effectivity of this Act;
b) Members who reach the age of retirement as provided for by law and have paid at least one hundred twenty (120) monthly contributions; and
c) Enrolled indigents.
SEC. 13. Portability of Benefits The Corporation shall develop and enforce mechanisms and procedures to assure that benefits are portable across Offices.

Article IV. THE PHILIPPINE HEALTH INSURANCE CORPORATION

SEC. 14. Creation and Nature of the Corporation There is hereby created a Philippine Health Insurance Corporation, which shall have the status of a tax-exempt
government corporation attached to the Department of Health for policy coordination and guidance.
SEC. 15. Exemptions from Taxes and Duties The Corporation shall be exempt from the payment of taxes on all contributions thereto and all accruals on its income or
investment earnings.
Any donation, contribution, bequest, subsidy or financial aid which may be made to the Corporation shall constitute as allowable deduction from the income of the donor
for income tax purposes and shall be exempt from donors tax, subject to such conditions as provided for in the National Internal Revenue Code, as amended.
SEC. 16. Powers and Functions The Corporation shall have the following powers and functions:
a) to administer the National Health Insurance Program;
b) to formulate and promulgate policies for the sound administration of the Program;
c) to set standards, rules, and regulations necessary to ensure quality of care, appropriate utilization of services, fund viability, member satisfaction, and overall
accomplishment of Program objectives;
d) to formulate and implement guidelines on contributions and benefits; portability of benefits, cost containment and quality assurance; and health care provider
arrangements, payment, methods, and referral systems;
e) to establish branch offices as mandated in Article V of this Act;
f) to receive and manage grants, donations, and other forms of assistance;
g) to sue and be sued in court;
h) to acquire property, real and personal, which may be necessary or expedient for the attainment of the purposes of this Act;
i) to collect, deposit, invest, administer, and disburse the National Health Insurance Fund in accordance with the provisions of this Act;
j) to negotiate and enter into contracts with health care institutions, professionals, and other persons, juridical or natural, regarding the pricing, payment mechanisms,
design and implementation of administrative and operating systems and procedures, financing, and delivery of health services;
k) to authorize Local Health Insurance Offices to negotiate and enter into contracts in the name and on behalf of the Corporation with any accredited government or
private sector health provider organization, including but not limited to health maintenance organizations, cooperatives and medical foundations, for the provision of at
least the minimum package of personal health services prescribed by the Corporation;
l) to determine requirements and issue guidelines for the accreditation of health care providers for the Program in accordance with this Act;
m) to supervise the provision of health benefits with the power to inspect medical and financial records of health care providers and patients who are participants in or
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members of the Program, and the power to enter and inspect accredited health care institutions, subject to the rules and regulations to be promulgated by the
Corporation;64) to organize its office, fix the compensation of and appoint personnel as may be deemed necessary and upon the recommendation of the president of the
Corporation;
o) to submit to the President of the Philippines and to both Houses of Congress its Annual Report which shall contain the status of the National Health Insurance Fund, its
total disbursements, reserves, average costing to beneficiaries, any request for additional appropriation, and other data pertinent to the implementation of the Program
and publish a synopsis of such report in two (2) newspapers of general circulation;
p) to keep records of the operations of the Corporation and investments of the National Health Insurance Fund; and
q) to perform such other acts as it may deem appropriate for the attainment of the objectives of the Corporation and for the proper enforcement of the provisions of this
Act.
SEC 17. Quasi-Judicial Powers. The Corporation, to carry out its tasks more effectively, shall be vested with the following powers:
a) to conduct investigations for the determination of a question, controversy, complaint, or unresolved grievance brought to its attention, and render decisions, orders, or
resolutions thereon. It shall proceed to hear and determine the case even in the absence of any party who has been properly served with notice to appear. It shall conduct
its proceedings or any part thereof in public or in executive session; adjourn its hearings to any time and place; refer technical matters or accounts to an expert and to
accept his reports as evidence; direct parties to be joined in or excluded from the proceedings; and give all such directions as it may deem necessary or expedient in the
determination of the dispute before it;
b) to summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of documents and other materials
necessary to a just determination of the case under investigation;
c) to suspend temporarily, revoke permanently, or restore the accreditation of a health care provider or the right to benefits of a member and / or impose fines after due
notice and hearing. The decision shall immediately be executory, even pending appeal, when the public interest so requires and as may be provided for in the
implementing rules and regulations. Suspension of accreditation shall not exceed twenty-four (24) months. Suspension of the rights of members shall not exceed six (6)
months.
The revocation of a health care providers accreditation shall operate to disqualify him from obtaining another accreditation in his own name, under a different name, or
through another person, whether natural or juridical.
The Corporation shall not be bound by the technical rules of evidence.
SEC. 18. The Board of Directors.
a) Composition The Corporation shall be governed by a Board of Directors hereinafter referred to as the Board, composed of eleven members as follows:
The Secretary of Health;
The Secretary of Labor and Employment or his representative;
The Secretary of the Interior and Local Government of his representative;
The Secretary of Social Welfare and Development or his representative;
The President of the Corporation;
A representative of the labor sector;
A representative of employers;
The SSS Administrator or his representative;64he GSIS General Manager or his representative;
A representative of the Self-employed Sector; and
A representative of health care providers.
The Secretary of Health shall be the ex officio Chairperson while the President of the Corporation shall be the Vice Chairperson of the Board.
b) Appointment and Tenure The President of the Philippines shall appoint the Members of the Board upon the recommendation of the Chairperson of the Board and in
consultation with the sectors concerned.
Members of the Board shall have a term of four (4) years each, renewable for a maximum of two (2) years, except for members whose terms shall be co-terminous with
their respective positions in government. Any vacancy in the Board shall be filled in the manner in which the original appointment was made and the appointee shall serve
only the unexpired term of his predecessor.
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c) Meetings and Quorum The Board shall hold regular meetings at least once o a month. Special meetings may be convened at the call of the Chairperson or by a majority
of the members of the Board. The presence of six (6) voting members shall constitute a quorum. In the absence of the Chairperson and Vice Chairperson, a temporary
presiding officer shall be designated by the majority of the quorum.
d) Allowances and Per Diems The members of the Board shall receive a per diem for every meeting actually attended subject to the pertinent budgetary laws, rules and
regulations on compensation, honoraria and allowances.
SEC. 19. The President of the Corporation.
a) Appointment and Tenure The President of the Philippines shall appoint for a non-renewable term of six (6) years, the President of the Corporation, hereinafter referred
to as the President, upon the recommendation of the Board. The President shall not be removed from office except in accordance with existing laws.
b) Duties and Functions The President shall have the duty of advising the Board and carrying into effect its policies and decisions. His functions are as follows:
1) to act as the chief executive officer of the Corporation; and
2) to be responsible for the general conduct of the operations and management functions of the Corporation and for other duties assigned to him by the Board.
c) Qualifications The President must be a Filipino citizen and must possess adequate and appropriate training and at least (5) years experience in the field of health care
financing and corporate management.
d) Salary The President shall receive a salary to be fixed by the Board, with the approval of the President of the Philippines, payable from the funds of the Corporation.
e) Prohibition To avoid conflict of interest, the President must not be involved in any health care institution as owner or member of its board.
SEC. 20. Health Finance Policy Research. Among the staff departments that will be established by the Corporation shall be the Health Finance Policy Research
Department, which shall have the following duties and functions:
a) development of broad conceptual framework for implementation of the Program through a national health finance master plan to ensure sustained investments in
health care, and to provide guidance for additional appropriations from the National Government;65)
b) conduct of researches and studies toward the development of policies necessary to ensure the viability, adequacy and responsiveness of the Program;
c) review, evaluation, and assessment of the Programs impact on the access as well as to the quality and cost of health care in the country;
d) periodic review of fees, charges, compensation rates, capitation rates, medical standards, health outcomes and satisfaction of members, benefits, and other matters
pertinent to the operations of the Program;
e) comparison in the delivery, quality, use and cost of health care services of the different Offices;
f) submission for consideration of program of quality assurance, utilization review, and technology assessment; and
g) submission of recommendations on policy and operational issues that will help the Corporation meet the objectives of this Act.
SEC. 21. Actuary of the Corporation An Office of the Actuary shall be created within the Corporation to conduct the necessary actuarial studies and present
recommendations on insurance premium, investments and other related matters.

Article V. LOCAL HEALTH INSURANCE OFFICE

SEC. 22. Establishment. The Corporation shall establish a Local Health Insurance Office, hereinafter referred to as the Office, in every province or chartered city, or
wherever it is deemed practicable to bring its services closer to members of the Program. However, one Office may serve the needs of more than one province or city
when the merged operations will result in lower administrative cost and greater cross-subsidy between rich and poor localities.
Provinces and cities where prospective members are organized shall receive priority in the establishment of local health insurance offices.
SEC 23. Functions. Each Office shall have the following powers and functions:
a) to consult and coordinate, as needed, with the local government units within its jurisdiction in the implementation of the Program;
b) to recruit and register members of the Program from all areas within its jurisdiction;
c) to collect and receive premiums and other payment contributions to the Program;
d) to maintain and update the membership eligibility list at community levels;
e) to supervise the conduct of means testing which shall be based on the criteria set by the Corporation and undertaken by the Barangay Captain in coordination with the
social welfare officer and community-based health care organizations to determine the economic status of all households and individuals, including those who are
indigent;
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f) to issue health insurance ID cards to persons whose premiums have been paid according to the requirements of the Office and the guidelines issued by the Board;66) to
recommend to the Board premium schedules that provide for lower rates to be paid by members whose dependents include those with reduced probability of utilization,
as in fully immunized children;
h) to recommend to the Board a contribution schedule which specifies contribution levels by individuals and households, and a corresponding uniform package of personal
health service benefits which is at least equal to the minimum package of such benefits prescribed by the Board as applying to the nation;
i) to grant or deny accreditation to health care providers in their area of jurisdiction, subject to the rules
and regulations to be issued by the Board;
j) to process, review and pay the claims of providers, within a period not exceeding sixty (60) days whenever applicable in accordance with the rules and guidelines of the
Corporation;
k) to pay fees, as necessary, for claims review and processing when such are conducted by the central office of the Corporation or by any of its contractors;
l) to establish referral systems and network arrangements with other Offices as may be necessary and following the guidelines set by the Corporation;
m) to establish mechanisms by which private and public sector health facilities and human resources may be shared in the interest of optimizing the use of health
resources;
n) to support the management information system requirements of the Corporation;
o) to serve as the first level for appeals and grievance cases;
p) to tap community-based volunteer health workers and barangay officials, if necessary, for member recruitment, premium collection and similar activities, and to grant
such workers incentives according to the guidelines set by the Corporation and in accordance with applicable laws. However, the incentives for the barangay officials shall
accrue to the barangay and not to the said officials.
q) to participate in information and education activities that are consistent with the governments priority programs on disease prevention and health promotion; and
r) to prepare an annual report according to guidelines set by the Board and to submit the same to the central office of the Corporation.

Article VI. THE NATIONAL HEALTH INSURANCE FUND

SEC. 24. Creation of the National Health Insurance Fund There is hereby created a National Health Insurance Fund, hereinafter referred to as the Fund, that shall consist
of:
a) Contribution from Program members;
b) Current balances of the Health Insurance Funds of the SSS and GSIS collected under the Philippine Medical Care Act of 1969, as amended, including arrearages of the
Government of the Philippines with the GSIS for the said Fund;
c) other appropriations earmarked by the national and local governments purposely for the implementation of the Program;
d) Subsequent appropriations provided for under Sections 46 and 47 of this Act;

See also: Technical guidelines for Hazardous/Non-Hazardous estb. DOLE Memo. Circ. No. 2, S 98
DOLE Memo. Circ. No. 2, S 1998, Sec. 3
Section 3. Criteria for Classifying Hazardous Establishments or Workplaces. An establishment or workplace may be classified as hazardous if any of the conditions provided
under Rule 1013 of the OSHS has been confirmed, as follows:
(a) Where the nature of the of the work exposes the workers to dangerous environment elements, contaminants or work conditions including ionizing radiations,
chemicals, fire, flammable substances, noxious components and the like;
(b) Where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep sea fishing and mechanized
farming;
(c) Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic products;
(d) Where the workers use or are exposed to power-driven or explosive powder actuated tools; and
(e) Where the workers are exposed to biologic agents like bacteria and fungi, viruses, protozoa, nematodes and other parasites.
 Labor Law || A2015

Hazardous Work and Activities to Persons Below 18: D.O No. 4, S1999
1. Work which exposes children to physical, psychological or sexual abuse, such as in:
lewd shows (stripteasers, burlesque dancers, and the like)
cabarets
bars (KTV, karaoke bars)
dance halls
bath houses and massage clinics
escort service
gambling halls and places
2. Work underground, under water, at dangerous heights or at unguarded heights of two meters and above, or in confined places, such as in:
mining
deep sea fishing/diving
installing and repairing of telephone, telegraph and electrical lines; cable fitters
painting buildings
window cleaning
fruit picking involving climbing 67. Work with dangerous machinery, equipment and tools, or which involves manual handling or transport of heavy loads, such as in:
logging
construction
quarrying
operating agricultural machinery in mechanized farming
metal work and welding
driving or operating heavy equipment such as payloaders, backhoes, bulldozers, cranes, pile driving equipment, trailers, road rollers, tractor lifting appliances scaffold
winches, hoists, excavators and loading machines
operating or setting motor-driven machines such as saws, presses, and wood -working machines
operating power-driven tools such as drills and jack hammers
stevedoring
working in airport hangars
working in warehouses
working in docks
4. Work in unhealthy environment which may expose children to hazardous processes, to temperatures, noise levels or vibrations damaging to their health, to toxic,
corrosive, poisonous, noxious, explosive, flammable and combustible substances or composites, to harmful biological agents, or to other dangerous chemicals including
pharmaceuticals, such as in:
manufacture or handling of pyrotechnics
tanning
pesticide spraying
blacksmithing, hammersmiths, forging
extracting lard and oil
tiling and greasing of heavy machinery
fiber and plastic preparing
bleaching, dyeing, and finishing of textiles using chemicals
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embalming and as undertakers
painting and as finishers in metal craft industries
applying of adhesive/solvent in footwear, handicraft, and woodwork industries
brewing and distilling of alcoholic beverages
recycling of batteries and containers or materials used or contaminated with chemicals
working in abattoirs or slaughterhouses
garbage collecting
handling of animal manure in poultry houses or as fertilizers (compost and other decaying matter included) in farming
working in hospitals or other health care facilities
assisting in laboratories and x-ray work
welding
working in furnaces and kilns
working in discotheques
working in video arcades
5. Work under particularly difficult conditions such as work for long hours or during the night, or work where the child is unreasonably confined to the premises of the
employer.

III. EMPLOYEE CLASSIFICATION

Reference Arts. 278, 280-281; Omnibus Rules, Book VI, Rule 1. Secs. 1, 5, 6
1. Coverage 278
LABOR CODE: Art. 278
ARTICLE 278. Coverage. - The provisions of this Title shall apply to all establishments or undertakings, whether for profit or not.

2. Employee Classification 280-281

LABOR CODE: Art. 280-281
ARTICLE 280. Regular and casual employment. - The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties,
an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or
trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at
the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of
service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment
shall continue while such activity exists.
ARTICLE 281. Probationary employment. - Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by
an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause
or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement.
An employee who is allowed to work after a probationary period shall be considered a regular employee.

a. Employer Recognition
b. Employer Determination/ Designation
st nd
A. REGULAR EMPLOYEES 280, 1 par., 2 par.; 281, last sentence (supra); 75 (d); Omnibus Rules. Book VI, Rule I, Secs. 5 (a), (b), and 6.
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LABOR CODE: Art. 75 (d)
ARTICLE 75. Learnership agreement. - Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include:
(d) A commitment to employ the learners if they so desire, as regular employees upon completion of the learnership. All learners who have been allowed or suffered to
work during the first two (2) months shall be deemed regular employees if training is terminated by the employer before the end of the stipulated period through no fault
of the learners.

Omnibus Rules, Book VI, Rule I, Secs. 5 (a), (b) and 6

SECTION 5. (a) Regular Employment. The provisions of written agreements to the contrary notwithstanding and regardless of he oral agreements of the parties,
employment shall be deemed regular for purposes of Book VI of the Labor Code where the employee has been engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion termination of
which has been determined at the time of the engagement of the employee or where the job, work or service to be performed is seasonal in nature and the employment is
for the duration of the season.
(b) Casual employment. There is casual employment where an employee is engaged o perform a job, work or service which is merely incidental to the business of the
employer, and such job, work or service, is for a definite period made known to the employee at the time of engagement: provided, that any employee who has rendered
at least one year of service, whether such service is continuous or not, shall be considered a regular employee with respect to the activity in which he is employed and his
employment shall continue while such activity exists.
Notwithstanding the forgoing distinctions, every employee shall be entitled to the rights and privileges, and shall be subject to the duties and obligations, as may be
granted by law to regular employees during the period of their actual employment.
SECTION 6. Probationary employment. (a) Where the work for which an employee has been engaged is learnable or apprenticeable in accordance with the standards
prescribed by the Department of Labor, the probationary employment period of the employee shall be limited to the authorized learnership or apprenticeship period,
whichever is applicable.
(b) Where the work is neither learnable nor apprenticeable, the probationary employment period shall not exceed six (6) months reckoned from the date the employee
actually started working.
(c) The services of an employee who has been engaged on probationary basis may be terminated only for a just cause or when authorized by existing laws, or when he fails
to qualify as a regular employee in accordance with reasonable standards prescribed by the employer.
(d) In all cases involving employees engaged on probationary basis, the employer shall make known to the employee the standards under which he will qualify as a regular
employee at the time of his engagement.

1. Nature of Work
2. Art. 280; When applicable
3. Extended Period
4. Repeated renewal of Contract

B. PROJECT EMPLOYEES 280, 1st par.; See also Policy Instructions No. 20 of 1977 and DO No. 19 of 1993
LABOR CODE: Art. 280, 1st par.
ARTICLE 280. Regular and casual employment. - The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties,
an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or
trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at
the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.

POLICY INSTRUCTIONS NO. 20 of 1977

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STABILIZING EMPLOYER-EMPLOYEE RELATIONS IN THE CONSTRUCTION INDUSTRY
In the interest of stabilizing employer-employee relations in the construction industry and taking into consideration its unique characteristics, the following policy
instructions are hereby issued for the guidance of all concerned.
Generally, there are two types of employees in the construction industry, namely:
1) Project employees; and
2) Non-Project employees
Project employees are those employed in connection with a particular construction project. Non-project employees are those employed by a construction company
without reference to any particular project.
Project employees are not entitled to termination pay if they are terminated as a result of the completion of the project or any phase thereof in which they are employed,
regardless of the number of projects in which they have been employed by a particular construction company. Moreover, the company is not required to obtain a
clearance from the Secretary of Labor in connection with such termination. What is required of the company is a report to the nearest Public Employment Office for
statistical purposes.
If a construction project or any phase thereof has a duration of more than one year and a Project employee is allowed to be employed therein for at least one year, such
employee may not be terminated until the completion of the project or of any phase thereof in which he is employed without a previous written clearance from the
Secretary of Labor. If such an employee is terminated without a clearance from the Secretary of Labor, he shall be entitled to reinstatement with backwages.
The employees of a particular project are not terminated at the same time. Some phases of the project are completed ahead of others. From this reason, the completion of
a phase of the Project is the completion of the project for an employee employed in such phase. In other words, employees terminated upon the completion of their phase
of the project are not entitled to separation pay and exempt from the clearance requirement.
On the other hand, those employed in a particular phase of a construction project are also not terminated at the same time. Normally, less and less employees are required
as the phase draws closer to completion. Project employees terminated because their services are no longer needed in their particular phase of the project are not entitled
to separation pay and are exempt from the clearance requirement, provided they are not replaced. If they are replaced, they shall be entitled to reinstatement with
backwages.
Members of a work pool from which a construction company draws its project employees, if considered employees of the construction company while in the work pool,
are non-project employees or employees for an indefinite period. If they are employed in the particular project, the completion of the project or of any phase thereof will
not mean severance of employer-employee relationship.
However, if the workers in the work pool are free to leave anytime and offer their services to other employers then they are project employees employed by a construction
company in a particular project or in a phase thereof.
Generally, there are three (3) types of non-project employees: first, probationary employees; second, regular employees; and third, casual employees.
Probationary employees are those who, upon the completion of the probationary period, are entitled to regularization. Regular employees are those who have completed
the probationary period or those appointed to fill up regular positions vacated as a result of death, retirement, resignation, or termination of the regular holders thereof.
On the other hand, casual employees are those employed for a short term duration to perform work not related to the main line of business of the employer.
The non-project employees of a construction company shall have the right to self-organization and free collective bargaining. They may constitute or form part of the
appropriate rank and file collective bargaining unit within the company.
On the other hand, it is the policy of the Department of Labor to promote the unionization of project employees by industry, but not by projects. In other words, for project
employees the appropriate collective bargaining unit is the industry, not any particular project or any phase thereof. Therefore, the employees of a particular project
cannot constitute an appropriate collective bargaining unit. They may, however, join the recognized industry union in the construction industry.
Pending the establishment of the recognized industry-wide union in the construction industry, a Tripartite Construction Industry Board (TCIB) is hereby established
composed of representatives of the employers, representatives of the workers and representatives of the government for the purpose of establishing fair wages and other
terms and conditions of employment in the industry, short of free collective bargaining. The Board shall also serve as a forum for consultations on all other matters
affecting employer-employee relations in the industry, including manpower development and employment.

DEPARTMENT ORDER NO. 19-93 (1 APRIL 1993)

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GUIDELINES GOVERNING THE EMPLOYMENT OF WORKERS IN THE CONSTRUCTION INDUSTRY
In the interest of stabilizing and promoting harmonious employer-employee relations in the construction industry and in order to ensure the protection and welfare of
workers employed therein, the following guidelines are hereby issued for all concerned:
SECTION 1. COVERAGE. This issuance shall apply to all operations and undertakings in the construction industry and its subdivisions, namely: general building construction,
general engineering construction and special trade construction, based on the classification code of the Philippine Construction Accreditation Board of the Construction
Industry Authority of the Philippines; to companies and entities involved in demolition works; and to those falling within the construction industry as determined by the
Secretary of Labor and Employment.
SECTION 2. EMPLOYMENT STATUS
1.1 CLASSIFICATION OF EMPLOYEES. - The employees in the construction industry are generally categorized as a) project employee and b) non-project employees.
Project employees are those employed in connection with a particular construction project or phase thereof and whose employment is co-terminus with each
project or phase of the project to which they are assigned. Non-project employees, on the other hand, are those employed without reference to any particular
construction project or phase of a project.
1.2 INDICATORS OF PROJECT EMPLOYMENT. Either one or more of the following circumstances, among others, may be considered as indicators that an employee is
a project employee.
(a) That duration of the specific/ identified undertaking for which the worker is engaged is reasonable determinable.
(b) Such duration, as well as the specific work/ service to be performed, is defined in an employment agreement and is made clear to the employee at the time of
hiring.
(c) The work/ service performed by the employee is in connection with the particular project/ undertaking for which he is engaged.
(d) The employee, while not employed and awaiting engagement, is free to offer his services to any other employer.
(e) The termination of his employment in the particular project/ undertaking is reported to the Department of Labor and Employment (DOLE) Regional Office
having jurisdiction over the workplace within 30 days following the date of his separation from work, using the prescribed form on employees terminations/
dismissals/ suspensions.
(f) An undertaking in the employment contract by the employer to pay completion bonus to the project employee as practiced by most construction companies.
1.3 PROJECT COMPLETION AND REHIRING OF WORKERS.
(a) The employees of a particular project are not separated from work at the same time. Some phases of the project are completed ahead of others. For this
reason, the completion of a phase of the project is considered the completion of the project for an employee employed in such phase. Meanwhile, those
employed in a particular phase of a construction project are also no separated at the same time. Normally, less and less employees are required as the
phase draws closer to completion.
(b) Upon completion of the project or a phase thereof, the project employee may be rehired for another undertaking provided, however, that such rehiring
conforms with the provisions of law and this issuance. In such case, the last day of service with the employer in the preceding project should be indicated
in the employment.
1.4 TYPES OF NON-PROJECT EMPLOYEES. Generally there are three (3) types of non-project employees: first, probationary employees; second, regular employees;
and third, casual employees.
(a) Probationary employees are those who, upon the completion of the probationary period, are entitled to regularization. Upon their engagement,
probationary employee should be informed of the reasonable standards under which they will qualify as regular employees.
(b) Regular employees are those appointed as such or those who have completed the probationary period or those appointed to fill up regular positions
vacated as a result of death, retirement, resignation or termination of employment of the regular holders thereof.
(c) Casual employees are those employed to perform work not related to the main line of business of the Employer. Casual employees who are employed for
at least one year, whether continuous or broken, shall be considered regular with respect tot the activity in which they are employed an their
employment shall continue for as long as such activity exists, unless the employment is terminated sooner by the employer for a just or authorized cause,
or voluntarily by the employee.
1.5 CONTRACTING AND SUBCONTRACTING. - The practice of contracting out certain phases of a construction project is recognized by law, particularly wage
 Labor Law || A2015
legislations and wage orders, and by industry practices. The Labor Code and its Implementing Regulations allow the contracting out of jobs under certain
conditions. Where such job contracting is permissible, the construction workers are generally considered as employees of the contractor or subcontractor, as the
case may be, subject Art. 109 of the Labor Code, as amended.
SECTION 3. CONDITIONS OF EMPLOYMENT
1.1 SECURITY OF TENURE. Project employees who have become regular shall enjoy security of tenure in their employment as provided under Article 280 of the Labor
Code, as amended. Where their services are terminated for a cause/causes, they are not by law entitled to separation pay. The just causes for terminating
employment are enumerated under Article 282 of the Code. Where the services of regular employees are terminated for any of the authorized causes under
Article 283, as distinguished from just causes, they are entitled to separation pay.
1.2 PROJECT EMPLOYEES NOT ENTITLED TO SEPARATION PAY. - The project employees contemplated by paragraph 2.1 hereof are not by law entitled to separation
pay if their services are terminated as a result of the completion of the project or any phase thereof in which they are employed. Likewise, project employees
whose services are terminated because they have no more to do or their services are no longer needed in the particular phase of the project are not by law
entitled to separation pay.
1.3 PROJECT EMPLOYEES ENTITLED TO SEPARATION PAY. -
(a) Project employees whose aggregate period of continuous employment in a construction company is at least one year shall be considered regular
employees, in the absence of a day certain agreed upon by the parties for the termination of their relationship. Project employees who have become
regular shall be entitled to separation pay.
A day as used herein, is understood to be that which must necessarily come, although it may not be known exactly when. This means that where the
final completion of a project or phase thereof is in fact determinable and the expected completion is made known to the employee, such project
employee may not be considered regular, notwithstanding the one-year duration of two or more employments in the same project or phase of the
project.
The completion of the project or any phase thereof is determined on the date originally agreed upon or the date indicated on the contract or, if the same
is extended, the date of termination of project extension.
(b) If the project or the phase of the project the employee is working on has not yet been completed and his services are terminated without just cause or
authorized cause and there is no showing that this services are unsatisfactory, the project employee is entitled to reinstatement with backwages to his
former position or substantially equivalent position. If the reinstatement is not longer possible, the employee is entitled to his salaries for the unexpired
portion of the agreement.
1.4 COMPLETION OF THE PROJECT. - Project employees who are separated from work as a result of the completion of the project or any phase thereof in which they
are employed are entitled to the pro-rata completion bonus if there is an undertaking for the grant of such bones. An undertaking by the employer to pay a
completion bonus shall be an indicator that an employee is a project employee. Where there is no such undertaking, the employee may be considered a non-
project employee. The pro-rata completion bonus may be based on the industry practice which is at least the employees one-half (1/2) month salary for every 12
months of service and may be put into effect for any project bid (in case of bid projects) tender submitted (in case of negotiated projects) thirty (30) days from the
date of issuance of these Guidelines.
1.5 STATUTORY BENEFITS. During the period of their employment, the construction employees whether project or non-project shall enjoy all the benefits due to
them under the law, both monetary and non-monetary.
1.6 PAYMENT BY RESULTS. - Where the payment for work or services rendered is by results, e.g., piece rate or pakiao, the rate shall be determined on the basis of
not less than the minimum wage applicable in the region where the construction project is located. The minimum wage rates of workers who are paid by results
may be determined by the appropriate DOLE Regional Office on its initiative or upon request of interested parties.
SECTION 4. PREVENTIVE SUSPENSION. Subject to Article 277 (b) of the Code, project and non-project employees may be preventively suspended if their continued
employment poses a serious and imminent thereat to the life or property of the employer or of their co-workers. No preventive suspension, however, shall last longer than
fifteen (15) days. The employer shall thereafter reinstate the worker in his former or in a substantially equivalent position or the employer may extend the period of
suspension provided that during the period of extension, he pays the wages and other benefits due to the worker. The employer shall designate a day, time and place
within the period of preventive suspension, with notice of the employee, to hold a fact-finding investigation, to enable the suspended employee to be heard and be
 Labor Law || A2015
assisted by his counsel or representative, if he so desires, of the charge and against him and thereby exonerate the employee, or upon the employees failure to vindicate
himself, to find the employee guilty and thereby, to terminate his employment. Such termination shall not prejudice the right of the employee to question the severance of
the relationship in the appropriate forum.
SECTION 5. SELF-ORGANIZATION AND COLLECTIVE BARGAINING. In recognition of the right of employees to self-organization and collective bargaining, this Department
hereby encourages the formation of trade unions in the construction industry, provided that the formation or activities of a recognized trade unions will not prejudice
existing bargaining units, subject to existing laws. As used herein, trade unions refer to a combination of workers of the same trade or of several allied trades, for the
purpose of securing by united action the most favorable conditions regarding wages, hours of labor and other terms and conditions of employment for its members.
SECTION 6. LIABILITIES/ RESPONSIBILITIES OF THE EMPLOYER AND THE WORKERS.
2.1 Requirements of labor and social legislations.
(a) The construction company and the general contractor and/or subcontractor referred to in Sec. 2.5 shall be responsible for the workers in its employ on
matters of compliance with the requirements of existing laws and regulations on hours of work, wages, wage-related benefits, including submission to the
DOLE-Regional Office of Work Accident/Illness Report, Monthly Report on Employees Terminations/Dismissals/Suspensions and other reports. The
prime/general contractor shall exercise sound judgment and discretion in contracting out projects to ensure compliance with labor standards.
(b) Project and non-project employees shall observe the requirements of labor and social legislations and reasonable company rules and regulations on matters
pertaining to their obligations.
2.2 Implementation of safety and health standards. The Department through the Regional Offices shall strictly enforce the Occupational Safety and Health
Standards, as amended, particularly Rule 1005 on Duties of Employers, Workers and Other Persons and Rule 1410 on Construction Safety. Through the Bureau of
Working Conditions, the Department may issue a code of practice on Occupational Safety and Health for the construction industry.
2.3 Wage Increases. As regards wage increases, whether mandated or agreed upon by the parties, the prescribed increase in the wage rates of the workers in
construction projects shall be borne by the principals or clients of the construction contractors and the contracts shall be deemed amended accordingly. The wage
rates of projects employees shall depend on the skills or level of competence of such project employees as determined by NMYC Trade and Standards subscribed
to by the Philippine Construction Industry under the Five Year Construction Manpower Development Plan dated November 1991, provided that the rates
established shall not be lower than that prescribed by the appropriate wage order and regulations. The liability in subsequent mandated rates of wage increases
and/or allowances to construction workers shall be determined in accordance with the provisions of the applicable wage legislations or orders.
SECTION 7. EFFECT ON EXISTING ISSUANCES AND AGREEMENTS. These issuances shall serve as guides for this Department and its agencies in the administration and
enforcement of applicable labor and social legislations and their implementing regulations. Nothing herein shall be construed to authorize dimunition or reduction of
benefits being enjoyed by employees at the time of issuance hereof.

This Department Order supersedes Policy Instructions No. 20 of 1977 and shall take effect immediately.

1. Definition
2. Project Employment
3. Application of Rule in Non-Construction Industries

C. CASUAL EMPLOYEES 280, 2nd par.; Omnibus Rules, Book VI, Rule 1, Sec. 5 (b)
LABOR CODE: Art. 280, 2nd par.
ARTICLE 280. Regular and casual employment. - An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any
employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity
in which he is employed and his employment shall continue while such activity exists.

Omnibus Rules, Book VI, Rule I, Sec. 5 (b)

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SECTION 5. (b) Casual employment. There is casual employment where an employee is engaged o perform a job, work or service which is merely incidental to the
business of the employer, and such job, work or service, is for a definite period made known to the employee at the time of engagement: provided, that any employee who
has rendered at least one year of service, whether such service is continuous or not, shall be considered a regular employee with respect to the activity in which he is
employed and his employment shall continue while such activity exists.
Notwithstanding the forgoing distinctions, every employee shall be entitled to the rights and privileges, and shall be subject to the duties and obligations, as may be
granted by law to regular employees during the period of their actual employment.

1. Nature of Work
2. One Year Service
D. FIXED-TERM EMPLOYEES
E. SEASONAL EMPLOYEES
F. PROBATIONARY EMPLOYEES 281; 61, 2nd sentence; Omnibus Rules, Book VI, Rule I, Sec. 6; Art. 75 (d)
LABOR CODE: Art. 281
ARTICLE 281. Probationary employment. - Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by
an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause
or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement.
An employee who is allowed to work after a probationary period shall be considered a regular employee.

LABOR CODE: Art. 61, 2nd sentence

ARTICLE 61. Contents of apprenticeship agreements. - Apprenticeship agreements, including the wage rates of apprentices, shall conform to the rules issued by the
Secretary of Labor and Employment. The period of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates below the legal minimum wage, which in no case shall start below 75 percent of the applicable minimum wage, may
be entered into only in accordance with apprenticeship programs duly approved by the Secretary of Labor and Employment. The Department shall develop standard
model programs of 74RESIDENTIAL DECREE No. 442 apprenticeship. (As amended by Section 1, Executive Order No. 111, December 24, 1986).

Omnibus Rules, Book VI, Rule I, Sec. 6

SECTION 6. Probationary employment. There is probationary employment where the employee, upon his engagement, is made to undergo a trial period during which
the employer determines his fitness to qualify for regular employment based on reasonable standards made known to him at the time of engagement.
Probationary employment shall be governed by the following rules:
(a) Where the work for which an employee has been engaged is learnable or apprenticeable in accordance with the standards prescribed by the Department of Labor and
Employment. The period of probationary employment shall be limited to the authorized learnership or apprenticeship period, whichever is applicable.
(b) Where the work is neither learnable nor apprenticeable, the probationary employment period shall not exceed six (6) months reckoned from the date the employee
actually started working.
(c) The services of an employee who has been engaged on probationary basis may be terminated only for a just cause or when authorized cause, or when he fails to qualify
as a regular employee in accordance with reasonable standards prescribed by the employer.
(d) In all cases of probationary employment, the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time
of his engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular employee

LABOR CODE: Art. 75 (d)

ARTICLE 75. Learnership agreement. - Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include:
(d) A commitment to employ the learners if they so desire, as regular employees upon completion of the learnership. All learners who have been allowed or suffered to
 Labor Law || A2015
work during the first two (2) months shall be deemed regular employees if training is terminated by the employer before the end of the stipulated period through no fault
of the learners.

1. Definition/ Purpose
2. Duration: Rule/Exception
3. Extension of Contract
4. Absorbed Employees
5. Standards to qualify as a regular employee
6. Private School Teachers-Rule

IV. TERMINATION OF EMPLOYMENT

Reference Const. Art. 13, Sec. 3; Arts. 282-286; 277 (b); Omnibus Rules, Book VI, Rule I.

A. GENERAL CONCEPTS
a. Coverage 278; Book VI, Rule I, Sec. 1
LABOR CODE: Art. 278
Art. 278. Coverage. The provisions of this Title shall apply to all establishments or undertakings, whether for profit or not.

Omnibus Rules, Book VI, Rule I, Sec. 1

Section 1. Coverage. This rule shall apply to all establishments and undertakings, whether operated for profit or not, including educational, medical, charitable and
religious institutions and organizations, in cases of regular employment with the exception of the Government and its political subdivision including government-owned or
controlled corporations

b. Security of Tenure 279; 277 (b)

LABOR CODE: Art. 277 (b), 279
Art. 277. Miscellaneous provisions. (b) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just
and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is
sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend
himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the
Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his
dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or
authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of
the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the
termination may cause a serious labor dispute or is in implementation of a mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)
Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by
this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his
actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)
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a. Nature of Right/ Rationale
b. Management Prerogative
c. Requisites for Lawful dismissal: Concurrence of Substantive and Procedural Due Process
d. Guide in the Disposition of Labor disputes
e. Normal Consequences of Illegality of Dismissal Art. 279 (supra)
f. Burden of proof 277 (b) 3rd sentence (supra)
g. Measure of Penalty
h. Measure of Penalty

B. TERMINATION OF EMPLOYMENT BY EMPLOYEE

1. Resignation
a. Just Causes 285 (b); Book VI, Rule I, Sec. 11
LABOR CODE: Art. 285 (b)
Art. 285. Termination by employee. (b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just
causes:
1. Serious insult by the employer or his representative on the honor and person of the employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his representative;
3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and
4. Other causes analogous to any of the foregoing.

Omnibus Rules, Book VI, Rule I, Sec. 11

SECTION 11. Termination of employment by employee. The just causes for putting an end to the employer-employee relationship by the employee shall be those
provided in Article 286 of the Labor Code.

b. Without Just Cause Requisites 285 (a); Const. Art. III, Sec. 18 (2)
LABOR CODE: Art. 285 (a)
Art. 285. Termination by employee.
a. An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in
advance. The employer upon whom no such notice was served may hold the employee liable for damages.

CONSTITUTION: Art. III, Sec. 18 (2)

SECTION 18. (2) No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted.

2. Performance of Military or Civic Duty 286; Book VI, Rule I, Sec. 12

LABOR CODE: Art. 286
Art. 286. When employment not deemed terminated. The bona-fide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or
the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former
position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or
from his relief from the military or civic duty.
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Omnibus Rules, Book VI, Rule I, Sec. 12
SECTION 12. Suspension of relationship. The employer-employee relationship shall be deemed suspended in case of suspension of operation of the business or
undertaking of the employer for a period not exceeding six (6) months, unless the suspension is for the purpose of defeating the rights of the employees under the Code,
and in case of mandatory fulfillment by the employee of a military or civic duty. The payment of wages of the employee as well as the grant of other benefits and privileges
while he is on a military or civic duty shall be subject to special laws and decrees and to the applicable individual or collective bargaining agreement and voluntary
employer practice or policy.

3. Forced Resignation
C. TERMINATION OF EMPLOYMENT BY EMPLOYER

1. Substantive Requirements JUST CAUSES 282; 279; 277 (b)

LABOR CODE: Art. 277 (b), 279, 282
Art. 277. Miscellaneous provisions. (b) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just
and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is
sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend
himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the
Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his
dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or
authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of
the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the
termination may cause a serious labor dispute or is in implementation of a mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)
Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by
this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his
actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
d. 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
e. Other causes analogous to the foregoing.

a. Basis Employer Right: a measure of self-protection Const., Art. XIII, Sec. 3, pars. 3 & 4
CONSTITUTION: Art. XIII, Sec. 3, pars. 3 & 4
Section 3. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes,
including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises
to reasonable returns to investments, and to expansion and growth.

b. Employers Right to Dismiss vis--vis Employees Right to Security of Tenure

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c. Just Causes Requisites
1) (i) Serious Misconduct 282 (a)
LABOR CODE: Art. 282 (a)
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;

(i.a) Use of accusatory language/ gross discourtesy

(ii) Willful disobedience (Insubordination) Art. 282 (a) (supra)
2) Gross and Habitual Neglect of Duties 282 (b)
LABOR CODE: Art. 282 (b)
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
b. Gross and habitual neglect by the employee of his duties;

3) Loss of Trust and Confidence 282 (c)

LABOR CODE: Art. 282 (c)
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;

4) Commission of Crime 282 (d)

LABOR CODE: Art. 282 (d)
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
d. 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

5) Analogous Causes 282 (e)

LABOR CODE: Art. 282 (e)
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
e. Other causes analogous to the foregoing.

d. Other Causes
1) Abandonment
2) Courtesy Resignation
3) Change of Ownership
4) Habitual absenteeism/tardiness
5) Past Offenses
6) Habitual Infractions
7) Immorality
8) Conviction/ Commission of a Crime
9) Qualification Requirements
e. Constructive Dismissal
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f. Temporary Off-detail or floating status
g. Transfer/ Reassignment of work
h. Promotion
i. Preventive Suspension - Bk. V, Rule XXIII, Secs. 8&9, Omnibus Rules (old provision i.e, prior to D.O. 40-03 which revised Book V and deleted Rule
XXIII). Note: At present, no specific rule governs Preventive Suspension
Omnibus Rules, Book VI, Rule XXIII, Secs. 8&9 (DELETED by DO 40-03)
Section 8. Preventive suspension. The employer may place the worker concerned under preventive suspension only if his continued employment poses a serious and
imminent threat to the life or property of the employer or of his co-workers.
Section 9. Period of suspension. No preventive suspension shall last longer than thirty (30) days. The employer shall thereafter reinstate the worker in his former or in a
substantially equivalent position or the employer may extend the period of suspension provided that during the period of extension, he pays the wages and other benefits
due to the worker. In such case, the worker shall not be bound to reimburse the amount paid to him during the extension if the employer decides, after completion of the
hearing, to dismiss the worker.

2. Substantive Requirements BUSINESS RELATED CAUSES 283; Book VI, Rule I, Sec. 9
LABOR CODE: Art. 283
ARTICLE 283. Closure of establishment and reduction of personnel. - The employer may also terminate the employment of any employee due to the installation of labor-
saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the
purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before
the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a
separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to
prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation
pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.

Omnibus Rules, Book VI, Rule I, Sec. 9

SECTION 9. Termination pay. (a) An employee shall be entitled to termination pay equivalent to at least one month's salary for every year of service a fraction of at least
six (6) months being considered as one whole year, in case of termination of his employment due to the installation of labor-saving devices or redundancy.
(b) Where the termination of employment is due to retrenchment to prevent losses and in case of closure or cessation of operations of establishment or undertaking not
due to serious business losses or financial reverses, or where the employee suffers from a disease and his continued employment is prohibited by law or is prejudicial to his
health or to the health of his co-employees, the employee shall be entitled to termination pay equivalent to at least one-half month's pay for every year of service, a
fraction of at least six months being considered as one whole year.
(c) The termination pay provided in the Section shall in no case be less than the employee's one month pay.

a. Basis Employer Right

b. Business-related or Authorized Causes
1) Installation of Labor-saving Devices 283
LABOR CODE: Art. 283
ARTICLE 283. Closure of establishment and reduction of personnel. - The employer may also terminate the employment of any employee due to the installation of labor-
saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the
purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before
the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a
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separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to
prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation
pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.

2) Retrenchment to Prevent Losses 283 (supra)

3) Redundancy 283 (supra)
4) Closure of Business- 283 (supra)
5) Temporary Closure/ Bona fide suspension of operations 286
LABOR CODE: Art. 286
ARTICLE 286. When employment not deemed terminated. - The bona-fide suspension of the operation of a business or undertaking for a period not exceeding six (6)
months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his
former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer
or from his relief from the military or civic duty.

3. DISEASE 284
LABOR CODE: Art. 284
ARTICLE 284. Disease as ground for termination. - An employer may terminate the services of an employee who has been found to be suffering from any disease and
whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid separation pay
equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being
considered as one (1) whole year.

4. ENFORCEMENT OF UNION SECURITY CLAUSE IN THE CBA

5. DISMISSAL OF UNION OFFICERS FOR THE CONDUCT OF AN ILLEGAL STRIKE/DISMISSAL OF UNION MEMBERS FOR PARTICIPATING IN THE COMMISSION OF
ILLEGAL ACTS Art. 264 (a)
LABOR CODE: Art. 264 (a)
ARTICLE 264. Prohibited activities. - (a) No labor organization or employer shall declare a strike or lockout without first having bargained collectively in accordance with
Title VII of this Book or without first having filed the notice required in the preceding Article or without the necessary strike or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after assumption of jurisdiction by the President or the Minister or after certification or submission of the dispute to compulsory or
voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout.
Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full backwages. Any union officer
who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared
to have lost his employment status: Provided, That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his
employment, even if a replacement had been hired by the employer during such lawful strike.

D. PROCEDURAL REQUIREMENTS 277 (b); Book VI, Rule I, Secs. 1-3, Omnibus Rules
LABOR CODE: Art. 277 (b)
Art. 277. Miscellaneous provisions. (b) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just
and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is
sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend
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himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the
Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his
dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or
authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of
the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the
termination may cause a serious labor dispute or is in implementation of a mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)

Omnibus Rules, Book VI, Rule I, Sec. 1-3

Section 1. Coverage. This rule shall apply to all establishments and undertakings, whether operated for profit or not, including educational, medical, charitable and
religious institutions and organizations, in cases of regular employment with the exception of the Government and its political subdivision including government-owned or
controlled corporations
Section 2. Security of Tenure. (a) In cases of regular employment, the employer shall not terminate the services of an employee except for just or authorized causes as
provided by law, and subject to the requirements of due process.
The foregoing shall also apply in cases of probationary employment; provided, however, that in such cases, termination of employment due to failure of the employee to
qualify in accordance with the standards of the employer made known to the former at the time of engagement may also be a ground for termination of employment.
In cases of employment covered by contracting or subcontracting arrangement, no employee shall be dismissed prior to the expiration of the contract between the
principal and contract or subcontractor as defined in Rule VIII-A, Book III of these Rules, unless the dismissal is for just or authorized cause, or is brought about by the
completion of the phase of the contract for which the employee was engaged, but in any case, subject to the requirements of due process or prior notice.
In all cases of termination of employment, the following standards of due process shall be substantially observed:
For termination of employment based on just causes as defined in Article 282 of the Labor Code:
(i) A written notice served on the employee specifying the ground or grounds for termination, and giving said employee reasonable opportunity within which to
explain his side.
(ii) A hearing or conference during which the employee concerned, with the assistance of counsel if he so desires is given opportunity to respond to the charge,
present his evidence, or rebut the evidence presented against him
(iii) A written notice of termination served on the employee, indicating that upon due consideration of all the circumstances, grounds have been established to
justify his termination.
For termination of employment as defined in Article 283 of the Labor Code, the requirement of due process shall be deemed complied with upon service of a written notice
to the employee and the appropriate Regional Office of the Department of Labor and Employment at least thirty days before effectivity of termination, specifying the
ground or grounds for termination.
If the termination is brought about by the completion of a contract or phase thereof, or by failure of an employee to meet the standards of the employer in the case of
probationary employment, it shall be sufficient that a written notice is served the employee within a reasonable time from the effective date of termination.
Section 3. Reinstatement. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and to backwages.

1. In General: Essential Elements of Due Process

a. Compliance with the Twin requirements of notice and hearing
b. Liability for non-compliance with procedural reqs.
2. Right to Counsel Art. 277 (b), 1st sentence
LABOR CODE: Art. 277 (b)
Art. 277. Miscellaneous provisions. (b) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just
and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is
sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend
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himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the
Department of Labor and Employment.

3.Two Notice Requirement Art. 277 (b), 1st sentence (supra)

4. Hearing
st
a. Hearing Art. 277 (b), 1 sentence (supra)
b. Use of Position Paper
5. Decision/Award Const., Art. VIII, Sec. 14
CONSTITUTION: Art. VIII, Sec. 14
Section 14. No decision shall be rendered by any court without expressing therein clearly and distinctly the facts and the law on which it is based. No petition for review or
motion for reconsideration of a decision of the court shall be refused due course or denied without stating the legal basis therefor.
rd
6. Burden of Proof Art. 277 (b), 3 sentence
LABOR CODE: Art. 277 (b)
Art. 277. Miscellaneous provisions. (b) The burden of proving that the termination was for a valid or authorized cause shall rest on the employer.

7. Degree of Proof/ Substantial evidence

8. Criminal Cases/ Quantum of Proof
9. Prescription CC, Art. 1146; Art. 291
CIVIL CODE: Art. 1146
Article 1146. The following actions must be instituted within four years:
(1) Upon an injury to the rights of the plaintiff;
(2) Upon a quasi-delict;
However, when the action arises from or out of any act, activity, or conduct of any public officer involving the exercise of powers or authority arising from Martial Law
including the arrest, detention and/or trial of the plaintiff, the same must be brought within one (1) year. (As amended by PD No. 1755, Dec. 24, 1980.)

10. Quitclaim
11. Dismissal of case, purely on technical ground frowned upon
12. Good faith of employee
13. Appeal in Labor cases 223
LABOR CODE: Art. 223
Art. 223. Appeal. Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (10)
calendar days from receipt of such decisions, awards, or orders. Such appeal may be entertained only on any of the following grounds:
If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
If the decision, order or award was secured through fraud or coercion, including graft and corruption;
If made purely on questions of law; and
If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable
bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be
executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation
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or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable penalty, including fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall file an answer not later than ten (10) calendar days from receipt
thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee. The decision of the Commission shall be final and
executory after ten (10) calendar days from receipt thereof by the parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the enforcement of decisions, awards or orders. (As
amended by Section 12, Republic Act No. 6715, March 21, 1989)

14. Appeal bond: Jurisdictional 223 (supra)

E. RELIEFS/ REMEDIES IN ILLEGAL DISMISSAL 279; 223 (supra)
LABOR CODE: Art. 279
Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by
this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his
actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)

1. IN GENERAL
a. REINSTATEMENT Art. 279 (supra)
1) Definition
2) Exceptions
a) Closure of Business
b) Economic Business Conditions
c) Employees Unsuitability
d) Employees Retirement/ Overage
e) Antipathy and Antagonism Strained Relations
f) Job with a totally different nature
3) Offer to reinstate
4) Payroll Reinstatement/ Wages pending Appeal Art. 223
LABOR CODE: Art. 223
Art. 223. Appeal. Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (10)
calendar days from receipt of such decisions, awards, or orders. Such appeal may be entertained only on any of the following grounds:
If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
If the decision, order or award was secured through fraud or coercion, including graft and corruption;
If made purely on questions of law; and
If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable
bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be
executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation
or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein.
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To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable penalty, including fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall file an answer not later than ten (10) calendar days from receipt
thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee. The decision of the Commission shall be final and
executory after ten (10) calendar days from receipt thereof by the parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the enforcement of decisions, awards or orders. (As
amended by Section 12, Republic Act No. 6715, March 21, 1989)

5) No Refund doctrine
6) Reinstatement as Interim relief, when applicable
b. BACKWAGES Art. 279
LABOR CODE: Art. 279
Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by
this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his
actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)

1) Effect of Failure to Order

2) Computation
3) Fringe Benefits
2. DAMAGES AND ATTORNEYS FEES Art. 111; CC, Art. 2208, par. 7
LABOR CODE: Art. 111
Art. 111. Attorneys fees.
a. In cases of unlawful withholding of wages, the culpable party may be assessed attorneys fees equivalent to ten percent of the amount of wages recovered.
b. It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages, attorneys fees which exceed ten
percent of the amount of wages recovered.

CIVIL CODE: Art. 2208, par. 7

Article 2208. In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except:
(7) In actions for the recovery of wages of household helpers, laborers and skilled workers;

3. SEPARATION PAY
a. Backwages and Separation Pay, Distinct Reliefs
b. Computation/ Rationale
c. Effect of Receipt
4. FINANCIAL ASSISTANCE/ SEPARATION PAY AS A MEASURE OF SOCIAL JUSTICE
When Allowed/ Not Allowed
5. INDEMNITY
6. LIABILITY OF CORPORATE OFFICERS

V. RETIREMENT
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References: 287; RA 7641; Implementing Rules; Labor Advisory on Retirement Pay (Oct. 1999); as amended by RA 8558 (Feb. 26, 1998) Reduced Retirement age of
underground workers from 60 to 50
LABOR CODE: Art. 287
Art. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment
contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining
agreement and other agreements: Provided, however, That an employees retirement benefits under any collective bargaining and other agreements shall not be less than
those provided therein.
In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60)
years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said
establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6)
months being considered as one whole year.
Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and
the cash equivalent of not more than five (5) days of service incentive leaves.
Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to the penal provisions under Article 288 of this Code

R.A. 7641: Retirement Law

AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR
RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Article 287 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is hereby amended to read as follows:
"Art. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable
employment contract.
"In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining
agreement and other agreements: Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than
those provided herein.
"In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60)
years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said
establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6)
months being considered as one whole year.
"Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the
cash equivalent of not more than five (5) days of service incentive leaves.
"Retail, service and agricultural establishments or operations employing not more than (10) employees or workers are exempted from the coverage of this provision.
"Violation of this provision is hereby declared unlawful and subject to the penal provisions provided under Article 288 of this Code."
Section 2. Nothing in this Act shall deprive any employee of benefits to which he may be entitled under existing laws or company policies or practices.
Section 3. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation,
whichever comes earlier.

Approved: December 9, 1992

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Rules Implementing R.A. 7641: The New Retirement Law (1 April 1993)
Pursuant to the provisions of Article 287 of the Labor Code as amended by Republic Act No. 7641, in relation to Article 5 of the same Code, RULE II of Book VI of the Rules
Implementing the Labor Code is hereby issued, the full text of which shall read as follows:
RULE II: Retirement Benefits
SECTION 1. General Statement on Coverage. This Rule shall apply to all employees in the private sector, regardless of their position, designation or status and
irrespective of the method by which their wages are paid, except to those specifically exempted under Section 2 hereof. As used herein, the term Act shall refer to
Republic Act No. 7641 which took effect on January 7, 1993.

SECTION 2. Exemptions. This Rule shall not apply to the following employees:
2.1 Employees of the National Government and its political subdivisions, including Government-owned and/or controlled corporations, if they are covered by the Civil
Service Law and its regulations.
2.2 Domestic helpers and persons in the personal service of another. (Deleted by Department Order No. 20 issued by Secretary Ma. Nieves R. Confessor on May 31, 1994.)
2.3 Employees of retail, service and agricultural establishment or operations regularly employing not more than ten (10) employees. As used in this sub-section;
(a) Retail establishment is one principally engaged in the sale of goods to end-users for personal or household use. It shall lose its retail character qualified for exemption
if it is engaged in both retail and wholesale sale of goods.
(b) Service establishment is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.
(c) Agricultural establishment/operations refers to an employer which is engaged in agriculture. This terms refers to all farming activities in all its branches and includes
among others, the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any agricultural or horticultural commodities, dairying, raising of
livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and any activities performed by a farmer or on a farm as incident to or in conjunction
with such farming operations, but does not include the manufacture and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm products.
SECTION 3. Retirement under CBA/contract.
3.1 Any employee may retire or be retired by his employer upon reaching the retirement age established in the collective bargaining agreement or other applicable
employment contract or retirement plan subject to the provisions of Section 5 hereof on the payment of retirement benefits.
3.2 In case of retirement under this Section, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any
collective bargaining agreement and other agreements; provided, however, that an employees retirement benefits under any collective bargaining and other agreements
shall not be less than those provided under this Rule, and provided further that if such benefits are less, the employer shall pay the difference between the amount due the
employee under this Rule and that provided under the collective or individual agreement or retirement plan.
3.3 Where both the employer and the employee contribute to a retirement fund in accordance with an individual or collective agreement or other applicable employment
contract, the employers total contribution thereto shall not be less than the total retirement benefits to which the employee would have been entitled had there been no
such retirement fund. In case the employers contribution is less than the retirement benefits provided under this Rule, the employer shall pay the deficiency.
SECTION 4. Optional; Compulsory Retirement.
4.1 Optional Retirement. In the absence of a retirement plan or other applicable agreement providing for retirement benefits of employees in an establishment, an
employee may retire upon reaching the age of sixty (60) years or more if he has served for at least five (5) years in said establishment.
4.2 Compulsory Retirement. Where there is no such plan or agreement referred to in the immediately preceding subsection, an employee shall be retired upon reaching
the age of sixty-five (65) years.
4.3 Upon retirement of an employee, whether optional or compulsory, his services may be continued or extended on a case to case basis upon agreement of the employer
and employee.
4.4 Service Requirement. The minimum length of service in an establishment or with an employer of at least five (5) years required for entitlement to retirement pay
shall include authorized absences and vacations, regular holidays and mandatory fulfillment of a military or civic duty.
SECTION 5. Retirement Benefits.
5.1 In the absence of an applicable agreement or retirement plan, an employee who retires pursuant to the Act shall be entitled to retirement pay equivalent to at least
one-half () month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.
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5.2 Components of One-half () Month Salary. For the purpose of determining the minimum retirement pay due an employee under this Rule, the term one-half month
salary shall include all of the following:
(a) Fifteen (15) days salary of the employee based on his latest salary rate. As used herein, the term salary includes all remunerations paid by an employer to his
employees for services rendered during normal working days and hours, whether such payments are fixed or ascertained on a time, task, piece of commission basis, or
other method of calculating the same, and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of food, lodging or other
facilities customarily furnished by the employer to his employees. The term does not include cost of living allowances, profit-sharing payments and other monetary
benefits which are not considered as part of or integrated into the regular salary of the employees.
(b) The cash equivalent of not more than five (5) days of service incentive leave;
(c) One-twelfth of the 13th month pay due the employee.
(d) All other benefits that the employer and employee may agree upon that should be included in the computation of the employees retirement pay.
5.3 One-half month salary of employees who are paid by results. For covered workers who are paid by results and do not have a fixed monthly rate, the basis for
determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor
Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their
retirement, divided by the number of actual working days in that particular period.
SECTION 6. Exemption from tax. The retirement pay provided in the Act may be exempted from tax if the requirements set by the Bureau of Internal Revenue under
Sec. 2 (b) item (1) of Revenue Regulations No. 12-86 dated August 1, 1986 are met, to wit:
Pensions, retirement and separation pay. Pensions, retirement and separation pay constitute compensation subject to withholding, except the following:
(1) Retirement benefits received by officials and employees of private firms under a reasonable private benefit plan maintained by the employer, if the following
requirements are met:
(i) The benefit plan must be approved by the Bureau of Internal Revenue;
(ii) The retiring official or employee must have been in the service of the same employer for at least ten (10) years and is not less than fifty (50) years of age at the time of
retirement; and
(iii) The retiring official or employee shall not have previously availed of the privilege under the retirement benefit plan of the same or another employer.
SECTION 7.Penal Provision. It shall be unlawful for any person or entity to circumvent or render ineffective the provisions of the Act. Violations thereof shall be subject
to the penal provisions provided under Article 288 of the Labor Code of the Philippines.
SECTION 8. Relation to agreements and regulations. Nothing in this Rule shall justify an employer from withdrawing or reducing any benefits, supplements or payments
as provided in existing laws, individual or collective agreements or employment practices or policies.
All rules and regulations, policy issuances or orders contrary to or inconsistent with these rules are hereby repealed or modified accordingly.
SECTION 9.Effectivity. This Rule took effect on January 7, 1993 when the Act went into force.

R.A. 8558
AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES BY REDUCING THE
RETIREMENT AGE OF UNDERGROUND MINE WORKERS FROM SIXTY (60) TO FIFTY (50)
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Article 287 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is hereby amended to read as follows:
"ART. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable
employment contract.
"In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining
agreement and other agreements: Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than
those provided herein.
"In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60)
years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said
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establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6)
months being considered as one whole year.
"Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the
cash equivalent of not more than five (5) days of service incentive leaves.
"An underground mining employee upon reaching the age of fifty (50) years or more, but not beyond sixty (60) years which is hereby declared the compulsory retirement
age for underground mine workers, who has served at least five (5) years as underground mine worker, may retire and shall be entitled to all the retirement benefits
provided for in this Article.
"Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.
"Violation of this provision is hereby declared unlawful and subject to the penal provisions provided under Article 288 of this Code.
"Nothing in this Article shall deprive any employee of benefits to which he may be entitled under existing laws or company policies or practices."
Section 2. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national papers of general circulation,
whichever comes earlier.
Approved: February 26, 199

1. Retroactive Application of RA 7641

2. Components of one-half month pay/ salary Guidelines 5.2
3. When RA 7641 is applicable
4. Three Kinds of Retirement Plans
5. Voluntary Retirement
6. Forfeiture of Benefits
7. Equitable Solution
8. Retirement pay differential
9. Management Prerogative