1 Labor Standards Art 1- 42 Paler, J.

ARTICLE 1 AND 2
LABOR LEGISLATIONS - statutes, regulations and jurisprudence governing the relations
between capital and labor by providing employment standards and legal framework for
negotiating, adjusting and administering those standards and other incidents.

LABOR STANDARDS LAW - provide the least terms and conditions of employment that
employers must comply with and to which employees are entitled to as a matter of legal right.
Defined by jurisprudence - the minimum requirements prescribed by existing laws, rules and
regulations relation to wages, hours of work, cost-of-living allowance, and other monetary and
welfare benefits, including occupational, safety and health standards.

LABOR RELATIONS - defines the status, rights and duties and the institutional mechanisms
that govern the individual and collective interactions of employers, employees and their
representatives.

SOCIAL LEGISLATIONS - laws that provide particular kinds of protection or benefits to

society or segments thereof in furtherance of social justice.

SOURCES OF LABOR LAWS:

Constitution
Labor Code
Social Security Law

CLASSIFICATION:
Labor Standards
Labor Relations
Social Security Law - provide protection to workers and members of their family

SOCIAL JUSTICE - juridical principle: prescribed the equality of the people, rich or poor,
before the law
societal goal: the attainment of decent quality of life of the masses through humane
productive efforts

CONSTITUTIONAL PROVISIONS ON LABOR PROTECTION

The state affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare (Art. II, Sec 18)
The right to form unions
The right to self-organization
regular farmworkers shall have the right to directly and collectively own the land they till
promote adequate employment opportunities to such citizens
2 Labor Standards Art 1- 42 Paler, J.

protect working women by providing safe and healthful working conditions

labor is entitled to seats allotted to partylist representatives
a more equitable distribution of opportunities, income and wealth
congress shall create an agency to promote the viability and growth of cooperatives
increase the salary scales of the other officials and employees of the government
separated due to reorganisation shall receive appropriate separation pay and retirement
and other benefits under existing laws

BASIC RIGHTS OF WORKERS UNDER THE CONSTITUTION (Art XIII, Sec 3)

1. to organize themselves
2. to conduct collective bargaining or negotiation with management
3. to engage in peaceful concerted activities including to strike in accordance with law
4. to enjoy security of tenure
5. to work under humane conditions
6. to receive a living wage
7. to participate in policy and decision-making processes affecting their rights and benefits as
may be provided by the law

LABOR CODE - a set of substantive and procedural laws that prescribe the principal rights
and responsibilties of employers, employees, and other industrial participants

ARTICLE 3
BASIC POLICY
The state (1) shall afford protection to labor, (2) promote full employment, (3) ensure equal
opportunities regardless of sex, race or creed, and (4) regulate relations between workers and
employees.

ARTICLE 4
CONSTRUCTION OF LABOR CODE
- when the law is silent, always construe in favor of labor

BALANCING OF RIGHTS
3 Labor Standards Art 1- 42 Paler, J.

RIGHTS OF WORKERS MANAGEMENT PREROGATIVES

- security of tenure
- right to participate in policy and decision
making process involving labor (PRINCIPLE
OF CO-DETERMINATION)
- but cannot be used to demand a seat in
the BOC
(right of ER)
- right to hire and fire (selection of employees)
- to transfer and discharge employees
- to promote and demote (not all promotion is
accompanied with increase salary)
- to prescribe rules
- to management of enterprise
- right to ROI : return of investment make
profit

LIMITATIONS OF MANAGEMENT PREROGATIVES

law
collective bargaining agreements or contracts
general principles of fair play and justice

ARTICLE 6
APPLICABILITY OF LABOR CODE
- applies to all workers, agricultural or non-agricultural
- EXCEPT: GOCC employees with ORIGINAL CHARTERS and GOVERNMENT
EMPLOYEES
- still applicable even if parties are not employers and employees

HOW TO DETERMINE EMPLOYER-EMPLOYEE RELATIONS : FOUR-FOLD TEST

1. power of the employee in the selection and engagement of employees (hire)
2. power of the employer to payment of wages (compensation)
3. power of dismissal (fire)
4. power of control (the most important of them all)

ARTICLE 13
DEFINITION OF TERMS
1. WORKER - any member of the labor force, whether employed or unemployed
2. RECRUITMENT & PLACEMENT - any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers. Includes referrals, contract services,
promising or advertising for employment, locally or abroad, profit or not
- any person or entity which offers or promises for a fee employment to two or more
persons shall be deemed in recruitment and placement.
4 Labor Standards Art 1- 42 Paler, J.

3. PRIVATE FEE-CHARGING EMPLOYMENT AGENCY - (licensee) any person or entity

engaged in the recruitment and placement of workers, for a fee which is charged, directly
or indirectly,from workers or employers or both.
4. LICENSE - document issued by DOLE authorizing a person or entity to operate a private
employment agency
5. PRIVATE RECRUITMENT ENTITY - (holder of authority) any person or entity engaged in
the recruitment and placement of workers, locally or overseas, without charging, directly or
indirectly, any fee from workers or employers
6. AUTHORITY - a document issued by the DOLE authorizing a person or association to
engage in recruitment and placement activities as a private recruitment entity

POEA - Philippine Overseas Employment Administration

- formulation, implementation and monitoring of policies and programs on overseas
employment of Filipino workers
- deployment of Filipino workers thru government to government hiring
JURISDICTION
- administrative in character
- disciplinary actions

NLRC - National Labor Relations Commission

Jurisdiction : employer-employee relations

LABOR ARBITER Jurisdiction : money claims arising from pre-termination of the employment
contract without valid cause

ARTICLE 18
BAN ON DIRECT HIRING
- direct hiring of Filipino workers by a foreign employer is not allowed unless through the
Boards and entitties authorised by DOLE
- EXCEPT:
- diplomatic corps
- international organisations
- NAME HIREES : individual workers who are able to secure contracts for overseas
employment on their own efforts and representations without assistance or participation
of any agency

INVALID SIDE AGREEMENT

- an agreement that diminishes the employees pay and benefits as contained in POEA-
approved contract is void unless such subsequent agreement is approved by POEA.
5 Labor Standards Art 1- 42 Paler, J.

MONEY CLAIMS
- maybe barred by laches
- prescription os three years

PROTECTION OF GOVERNMENT EMPLOYEES

- DFA
- DOLE
- POEA
- OWWA

REPATRIATION
- repatriation of the worker and transport of his personal belongings shall be the primary
responsibility of the agency which recruited or deployed the worker overseas
- costs shall be bored by agency or its principal
- REMAINS and property of deceased workers : bored by agency or its principal
- WORKER AT FAULT : agency and principal shall not be liable
- DISASTERS : OWWA ( Oversears Workers Welfare Administration)

ARTICLE 22
MANDATORY REMITTANCE OF FOREIGN EXCHANGE EARNINGS
- it is mandatory for Filipino workers abroad to remit a portion, 50% - 80% of the basic salary,
of their foreign exchange earnings to their families, dependents and beneficiaries

ARTICLE 25
PRIVATE SECTOR PARTICIPATION
- private sector shall participate in the recruitment and placement of workers, locally and
overseas

ARTICLE 26
TRAVEL AGENCIES & SALES AGENCIES PROHIBITION
- travel and sales agencies of airline companies are prohibited from engaging in the business
of recruitment and placement whether for profit or not
- INCLUDED in the prohibition are:
- persons with derogatory records convicted of illegal recruitment
- any official or employee of DOLE, POEA, OWWA, DFA, and other government agencies
involved in the implementation of RA 8042 or any of their relatives within the fourth civil
degree
- members of a corporation engaged in travel agencies and airlines
6 Labor Standards Art 1- 42 Paler, J.

LIMITATIONS OF LICENSING( (PRPA)

ARTICLE 27
CITIZENSHIP RECRUITMENT
- only Filipino citizens
- corporation at least 75% of the authorised and voting capital stock is owned and controlled
by Filipinos

ARTICLE 28
CAPITALIZATION
- substantial capitalization
- single proprietorship or partnership - Php 200,000 (local employment) 2M (overseas)
- corporation - Php 500,000 (local employment) 2M (overseas)

ARTICLE 29
NON-TRANSFERABILITY OF LICENSE OR AUTHORITY
- shall only undertake replacement and placement activities at their authorized address
- may be allowed to conduct provincial recruitments and job fairs with written authority from
POEA
- no license or authority shall be used by persons other than stated in the license
- license or authority cannot be transferred conveyed or assigned to any other person or
entity

ARTICLE 30
REGISTRATION FEE
- secretary of labor shall promulgate schedule of fees

ARTICLE 31
BONDS
- all applicants of license and authority shall post cash and security bonds
- all valid and legal claims arising from violations of the conditions for the grant and use of
license will be charged to the escrow agreement or surety bonds
- answers to employment-related claims and violations of labor laws
- if bonds are garnished, agency shall replenish it within 15 days from date of receipt of
notice from POEA
- voluntary surrender of license shall be entitled to refund
7 Labor Standards Art 1- 42 Paler, J.

ARTICLE 32
FEES TO BE PAID BY WORKERS
- person applying with a private fee-charging employment agency shall not be charged of a
fee until he has obtained employment through its (agency) efforts
- or has actually commenced employment
- POEA has the power to oder refund of illegally collected fees

ARTICLE 34
PROHIBITED ACTS
- unlawful for ay individual, entity, licensee, or holder of authority to commit the ff. acts:
A. to charge or accept any amount greater than specified
B. to furnish or publish false notice of employment
C. to give false notice for the purpose of securing a license or authority
D. to induce or attempt to induce a worker to quit employment
E. to influence or attempt to influence not to employ any worker
F. to engage in the recruitment and placement of workers in jobs harmful to public health or
morality or dignity of the Republic of the Phils
G. to obstruct or to attempt to obstruct inspection
H. to fail to file reports on the status of employment
I. to substitute or alter contracts prejudicial to workers
J. to become an officer or board of corporation engaged in travel agency or management
K. to withhold or deny documents for monetary or financial considerations

RA 8042 - addl prohibited practices

L. failure to actually deploy without valid reasons
M. failure to reimburse expenses incurred by workers in processing
N. to allow non-Filipino citizens to head or manage a licensed recruitment agency

ARTICLE 35
SUSPENSION OR CANCELLATION OF LICENSE
- secretary of labor has the power to suspend or cancel licenses
- recruitment agency is solidary liable with the principal (foreign) employer for the unpaid
salaries of a worker it recruited, even in their ties are severed
- EXCEPT:
- workers themselves insisted for the recruitment agency to send them back despite
knowledge of its inability to pay wages
- employees are notified of the severed ties of agency and principal
8 Labor Standards Art 1- 42 Paler, J.

ARTICLE 38
ILLEGAL RECRUITMENT
- any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring
workers and includes referring contract services, promising or advertising for employment
abroad
- those enlisted under Art 34, prohibited practices maybe committed by a licensee or non-
licensee
- BY A SYNDICATE : carried out by a group of 3 or more persons conspiring, confederating
with one another to carry out the illegal transaction
- BY LARGE SCALE (Economic Sabotage) : if committed against 3 or more persons
individually or as a group
- OTHER PROHIBITED ACTS
- grant a load to OFW with interest exceeding 8% per annum
- impose a compulsory and exclusive arrangement to avail loan
- refuse to condone or renegotiate a loan
- undergo health exam at specific clinics
- required to undergo training, seminars at specific institutions
- a suspended recruitment agency to engage in recruitment
- deduction on salary of workers the premiums for insurance
- RA 8042 addl prohibited acts
- an employee of a company or corporation engaged in illegal recruitment may be held liable
as principal, if it is shown that he actively and consciously participated in illegal recruitment

ARTICLE 40-42
EMPLOYMENT PERMIT OF NON-RESIDENT ALIENS
- employment permit maybe issued to a non-resident alien
- foreigners may not be employed in nationalized business such as : public utilities,
exploration of natural resources, mass media enterprises
- ANTI-DUMMY LAW : prohibits employment of aliens in entities that own or control a right,
franchise, privilege, property or business whose exercise or enjoyment is reserved by law
only to Filipinos or to corporations or associations whose capital should be at least 60%
Filipino owned.

****if article/s is/are not indicated, it means it has been repealed or not discussed by Judge
Amora during Labor Standards lecture****