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Art. 1. Name of Decree. This Decree shall be known
as the
"Labor Code of the Philippines". Presidential Decree
No. 442 – o t h e r w i s e k n o w n a s t h e “Labor
Code of the Philippines.
Social legislation – include laws that provide
particular kinds of protection or benefits to society or
segments thereof in furtherance of social justice.
Labor Legislation – consists of statutes, regulations
and jurisprudence governing the relations between
capital and labor, by provi ding for empl oyment
standards a nd a legal framework for negotiating,
adjusting and administering those standards and other
incidents of employment.
Classifications of Labor Legislation:
Labor standards law – is that which sets out the
minimum terms, conditions and benefits
of employment that employers must provide or comply
with and to which employees are entitled as a matter of
legal right.
As defined more specifically by jurisprudence, “are the
minimum requirements prescribed by existing laws,
rules and regulations relating to wages, hours of work,
cost-of-living allowance, and other monetary welfare
benefits, including occupational safety, and health
standards.”(Maternity Children's Hospital vs.
Secretary of Labor, GR No. 78909, June 30, 1989.)
Labor relations law – defines the status, rights and
duties, and the institutional mechanisms, that govern
the individual and collective interactions of employers,
employees or their representatives.
Labor - is understood as physical toil although it does
not necessarily exclude the application of skill, thus
there is skilled and unskilled labor.
Distinction: Labor law and social legislation
Labor laws - directly affect employment
Social legislation -governs effects of
Employment.
-are social legislation
Report in Intro to law
-not all SL are Labor Laws
Social Justice – is “neither communism, nor
despotism, nor atomism nor anarchy, but the
humanization of laws and the equalization of social
and economic forces by the State so that justice in its
rational and objectively secular conception may at least
be approximated. Social justice means the promotion
of the welfare of all the people, the adoption by the
Government of measures calculated to insure economic
stability of all the component elements of society,
through the maintenance of a proper economic and
social equilibrium in the interrelations of the members
of the community, constitutionally, through the
adoption of measures legally justifiable, or extra-
constituti onall y, t he exercise of powers
underl yi ng t he existence of all governments on the
time-honored principle of salus populi est suprema
lex.” (Calalang vs. Williams, 70 Phil. 726.)
While social justice is the raison d'etre of labor laws,
their basis or foundation is the police power of the
State.
Police Power – is the power of the government to
enact laws, within constitutional limits, to promote the
order, safety, health, morals and general welfare of
society. It is settled that state legislatures may enact
laws for the protection of the safety and health of
employees as an exercise of police power.
Art. 2. Date of effectivity. This Code shall take effect
six (6) months after its promulgation.
May 1, 1974 –PD No. 442 was signed i nt o law.
November 01, 1974 – effectivity date of the Labor
Code.
Related Laws:
Civil Code, RPC, Special Laws
Art. 3. Declaration of basic policy. The State shall
afford protection to labor, promote full employment,
ensure equal work opportunities regardless of sex, race
or creed and regulate the relations between workers
and employers. The State shall assure the rights of
workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of
work.
The Basic Policy of the Labor Code(social economic
goals)
1. Protection to labor;
2. Promote full employment;
3.Ensur e eq ual work opport unities regardl ess
of sex, race or creed, and
4. Regulate the relations between workers and
employers
Both sectors (employees and employers) need each
other. They are interdependent –one is inutile without
the other. The basic policy is to balance or to
coordinate the rights and interests of both workers and
employers.
Rights of Workers Under Art. 3 of the Labor Code
1. Self-organization;
2. Collective bargaining;
3. Security of tenure; and
4. Just and humane conditions of work
Constitutional Basis of the Labor Code
Art. II, Sec. 18 -the 1987 Constitution declares
as a state policy: “The State affirms labor as a primary
social economic force. It shall protect the rights
of workers and promote their welfare.”
Art. III, Sec. 18, par. 2 – no involuntary servitude
Art. IX-B, Sec. 2, Par. 1 – CSC embraces
all branches... agencies of government, including
GOCCs with original charters.
Art. IX-B, Sec. 2, par. 3 – No officer or employee
shall be removed or suspended except for
cause provided by law
Art. IX-B, Sec.5 – standardization of compensation of
government officials and employees.
Art. XII, Sec. 6 – the right to own, establish economic
enterprises subject to the duty of the State to promote
distributive justice
Art. XII, Sec. 12 –preferential use of Filipino labor
Art. XII, Sec. 14, par. 2 –practice of all
professions shall be limited to Filipinos.
Prepared by: Nelson Aldrin A. Engaño
Art. XII, Sec. 16 – Congress shall not provide for the
formation, organization, or regulation of private
corporations.
Art. XIII, Sec. 1 – protect and enhanc e ri ght to
human dignity, reduce social, economic and political
irregularities, and remove cultural inequalities by
equitably diffusing wealth and political power for the
common good.
Art. XIII, Sec. 2 – promotion of social justice
shall include the commitment to create economic
opportunities.
Art. XIII, Sec. 3, par. 1 –protection to labor,
local and overseas, organized and organized, and
promote full employment and equality of employment
opportunities for all
Art. XIII, Sec. 3, par. 2 –guarantee the rights of all
workers:
(1) Self-organization;
(2) Collective bargaining and negotiations;
(3) Peaceful concerted activities, including the right to
strike in accordance with law;
(4) Security of tenure;
(5) Humane conditions of work;
(6) Living wage;
(7) Participate in policy and decision-making processes
affecting their rights and benefits
Art. XIII, Sec. 3, par. 3 –shared responsibility:
voluntary modes in settling disputes
Art. XIII, Sec. 3, par. 4 – 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 on
investments and to expansion and
growth.(Constitutional balance between the rights
of workers and employers)
Job is a property, and no person shall be deprived of
life, liberty, and property without due process.
Through distributive justice, labor must receive what is
due them for the return of investment.
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Art. 4. Construction in favor of labor.
All doubts in the implementation and
interpretation of the provisions of this Code,
including its implementing rules and
regulations, shall be resolved in favor of
labor.
The Supreme Court adopts the liberal approach which
favors the exercise of labor rights.
The labor law is liberally construed in favor of the
workers and strictly construed against the employers.
Reason for according greater protection to employees
In the matter of employment bargaining, there is no
doubt that the employer stands on higher footing than
the employee. Those who have less in life should have
more in law.
Management Rights
It should not be supposed that every labor dispute will
be automatically decided in favor of labor.
Management has also its own rights which are entitled
to respect and enforcement in the interest of simple fair
play.
The law, in protecting the rights of the laborer,
authorizes neither oppression nor self-destruction of
the employer.
Right to Return of Investments (ROI) – the
employer has the right to recover his investments and
to make profit. The Constitution provides that the State
shall regulate the relations between workers and
employers, recognizing the right of labor to its just
share... and the right of enterprises to reasonable
returns on investments, and to expansion and growth.
The Right to Prescribe Rules – employers have the
right to make reasonable rules and regulations for the
government of their employees, and when employees,
with knowledge of an established rule, enter the
service, the rule becomes part of the contract of
employment.
The Right to Select Employees – an employer has a
right to select his employees and to decide when to
engage them. The State has no right to interfere in
a private employment; it cannot interfere with the
Report in Intro to law
liberty of contract with respect to labor except in the
exercise of the police power. If the employer can
compel the employee to work against the latter's will,
this is servitude. If the employee can compel the
employer to give him work against the employer's will,
this is oppression.
Right to Transfer or Discharge Employees – the
employer has the perfect right to transfer, reduce or lay
off personnel in order to minimize expenses and to
insure the stability of the business, and even to close
the business, provided the transfer or dismissal is not
abused but is done in good faith and is due to causes
beyond control. To hold otherwise would be
oppressive and inhuman.
Art. 5. Rules and regulations. The Department of
Labor and other government agencies charged with the
administration and enforcement of this Code or any of
its parts shall promulgate the necessary implementing
rules and regulations. Such rules and regulations shall
become effective fifteen (15) days after announcement
of their adoption in newspapers of general circulation.
The Labor Code itself in Art. 5 vests the Department of
Labor and Employment with rule-making powers in
the enforcement thereof.
ART. 6. Applicability. -All rights and benefits
granted to workers under this Code shall, except as
may otherwise be provided herein, apply alike to all
workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A,
November 1, 1974).
The Code is applicable to all employees in private
sector and government corporations without original
charter.
Under the present state of the law, the test in
determining whether a government-owned or
controlled corporation is subject to the Civil Service
Law is the manner of its creation.
Government corporations created by special
(original charter) from Congress are subject to Civil
Service rules, while those incorporated under the
general Corporation Law are covered by the Labor
Code.
The government-owned-and-controlled corporations
“with original charter” refer to corporations chartered
by special law as distinguished from corporation
organized under our general incorporation statute, the
Corporation Code.
While government employees are allowed under the
1987Constitution to organize and join union of their
choice, there is no law permitting them to strike
Art. 128. Visitorial and enforcement power. Visitorial
Power of the Secretary of Labor and Employment or
his duly authorized representatives, including labor
regulation officers
1. Access to employer’s records and premises at
anytime of the day or night whenever work is being
undertaken therein;
2. To copy from employer's records;
3. To question any employee
4. To investigate any fact, condition or matter which
may be necessary to determine violations or which
may aid in the enforcement of this Code
Enforcement Power of the Secretary of Labor and
Employment or his duly authorized representatives
1. To issue compliance orders to give effect to the
labor standards provisions of this Code and other labor
legislation based on the findings of labor employment
and enforcement officers or industrial safety engineers
made in the course of inspection;
2. To issue writs of execution to the appropriate
authority for the enforcement of their orders;
3. The Secretary of Labor and Employment to
order stoppage of work or suspension of operations of
any unit or department of an establishment when non-
compliance with the law or implementing rules and
regulations poses grave and imminent danger to the
health and safety of workers in the workplace.
4. The Secretary of Labor and Employment may
require employers to keep and maintain such
employment records as may be necessary in aid of his
visitorial and enforcement powers under this Code.
It is the right of employer to ask authority from visiting
labor personnel. Failure may result to a waiver.
Prepared by: Nelson Aldrin A. Engaño
Employer's remedy to contest the findings of the
Secretary of Labor and Employment or his duly
authorized representatives is the presentation of
documentary evidence, i.e. payrolls, SSS payment
receipts.
An order issued by the duly authorized representative
of the Secretary of Labor and Employment under this
Article may be appealed to the latter. In case said order
involves a 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 Secretary of Labor and
Employment in the amount equivalent to the monetary
award in the order appealed from.
Within twenty-four hours, a hearing shall be
conducted to determine whether an order for the
stoppage of work or suspension of operations shall be
lifted or not. In case the violation is attributable to the
fault of the employer, he shall pay the employees
concerned their salaries or wages during the period of
such stoppage of work or suspension of operation.
It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render ineffective
the orders of the Secretary of Labor and Employment
or his duly authorized representatives issued pursuant
to the authority granted under this Article, and no
inferior court or entity shall issue temporary or
permanent injunction or restraining order or otherwise
assume jurisdiction over any case involving the
enforcement orders issued in accordance with this
Article.
Any government employee found guilty of violation
of, or abuse of authority, under this Article shall, after
appropriate administrative investigation, be subject to
summary dismissal from the service.
Art. 129. Recovery of wages, simple money claims
and other benefits.
The Regional Director of the Department of Labor and
Employment or any of the duly authorized hearing
officers of the Department is empowered, through
summary proceeding and after due notice, to hear and
decide:
1. Any matter involving the recovery of wages and
other monetary claims and benefits, including legal
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interest, provided that the aggregate money claims
of each employee or house helper does not exceed Five
thousand pesos (P5,000.00).
2. Owing to an employee or person employed in
domestic or household service or house helper
under this Code
3. Arising from employer-employee relations
4. Complaint does not include a claim for
reinstatement; and
The Regional Director or hearing officer shall decide
or resolve the complaint within thirty (30) calendar
days from the date of the filing of the same.
Any sum thus recovered on behalf of any employee
or house helper pursuant to this Article shall be held in
a special deposit account by, and shall be paid on order
of, the (1) Secretary of Labor and Employment or (2)
the Regional Director or (3) directly to the employee or
house helper concerned.
Any such sum not paid to the employee or house
helper because he cannot be located after diligent and
reasonable effort to locate him within a period of three
(3) years, shall be held as a special fund of the
Department of Labor and Employment to be used
exclusively for the amelioration and benefit of
workers.
Any decision or resolution of the Regional Director or
hearing officer pursuant to this provision may be
appealed
on the same grounds provided in Article 223 of this
Code, within five (5) calendar days from receipt of a
copy of said decision or resolution, to the National
Labor Relations Commission which shall resolve the
appeal within ten(10)calendar days from the
submission of the last pleading required or allowed
under its rules.
The Secretary of Labor and Employment or his duly
authorized representative may supervise the payment
of unpaid wages and other monetary claims and
benefits, including legal interest, found owing to any
employee or house helper under this Code. (As
amended by Section 2, Republic Act No. 6715, March
21, 1989)
Report in Intro to law
Art. 217. Jurisdiction of the Labor Arbiters and the
Commission.
The Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide, within thirty
(30) calendar days after the submission of the case by
the parties for
decision without extension the following cases
involving all workers, whether agricultural or non-
agricultural:
*Unfair labor practice cases;
*Termination disputes;
*If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates
of pay, hours of work and other terms and conditions
of employment;
*Claims for actual, moral, exemplary and other forms
of damages arising from the employer-employee
relations;
*Cases arising from any violation of Article 264 of this
Code, including questions involving the legality
of strikes and lockouts; and
*Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all
other claims arising from employer-employee
relations, including those of persons in domestic or
household service, involving an amount exceeding five
thousand pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
The Commission shall have exclusive appellate
jurisdiction over all cases decided by Labor Arbiters.
Cases arising from the interpretation or implementation
of collective bargaining agreements and those arising
from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor
Arbiter by referring the same to the grievance
machinery and voluntary arbitration as may be
provided in said agreements.
Stages in the hearing of cases
1. Labor arbiter; and may be appealed to
2. The National Labor Relations Commission (NLRC);
and may be appealed to
3. The Court of Appeals (CA); and may be appealed to
4. The Supreme Court (SC).
Book One
PRE-EMPLOYMENT
Title I
RECRUIT AND PLACEMENT OF WORKERS
Chapter I
Art. 13. Definitions
Worker – any member of the labor force, whether
employed or unemployed.
Recruitment and placement – any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring
or procuring workers, and includes referrals, contract
services, promising or advertising for employment,
locally or abroad, whether for profit or not: Provided,
That any person or entity which, in any manner, offers
or promises for a fee, employment to two or more
persons shall be deemed engaged in recruitment and
placement.
“employment to two or more persons shall
be deemed engaged in recruitment and
placement” - this is only a matter of
evidence. Thus, even the employment
involves only one person, there is already
the engagement of recruitment
and placement.
The number of persons dealt with is not the
basis in determining whether or not an act
constitutes recruitment and placement. Any
of the acts mentioned in Article 13(b) will
constitute recruitment and placement even if
only one prospective worker is involved. In
that case, a license or authority from POEA
is needed.
License – means a document issued by the Department
of Labor authorizing a person or entity to operate a
private employment agency.
Authority – a document issued by the Department of
Labor authorizing a person or association to engage in
Prepared by: Nelson Aldrin A. Engaño
recruitment and placement activities as a private
recruitment entity.
Art. 18. Ban on direct-hiring
General Rule:
No employer may hire a Filipino worker for overseas
employment.
Exception:
Through the Boards and entities authorized
by the Secretary of Labor
Direct-hiring by members of the diplomatic
corps, international organizations and such
other employers as may be allowed by the
Secretary of Labor
REPUBLIC ACT NO. 8042
Migrant Workers and Overseas Filipinos Act of
1995
An act to institute the policies of overseas employment
and establish a higher standard of protection and
promotion of the welfare of migrant workers, their
families and overseas Filipinos in distress, and for
other purposes.
SEC. 2. DECLARATION OF POLICIES
The State does not promote overseas
employment a sa means to sustain
economic growth and achieve national
development. The existence of the overseas
employment program rests solely on the
assurance that the dignity and fundamental
human rights and freedoms of the Filipino
citizens shall not, at anytime, be
compromised or violated. The State,
therefore, shall continuously create
local employment opportunities and
promote the equitable distribution of
wealth and the benefits of development.
SEC. 3. DEFINITIONS
Migrant worker – a person who is to be engaged, is
engaged or has been engaged in a renumerated activity
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in a state of which he or she is not a legal resident to be
used interchangeably with overseas Filipino worker.
Overseas Filipinos – dependents of migrant workers
and other Filipino nationals abroad who are in distress
as mentioned in Sections 24 and 26 of this Act
II. ILLEGAL RECRUITMENT
Sec. 6. DEFINITIONS
Illegal recruitment – any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, procuring
workers and includes referring, contact services,
promising or advertising for employment abroad,
whether for profit or not, when undertaken by a non-
license or non-holder of authority. Provided, that such
non-license or non-holder, who, in any manner, offers
or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall
likewise include the following acts, whether
committed by any persons, whether a non-licensee,
non-holder, licensee or holder of authority.
(a) To charge or accept directly or indirectly any
amount greater than the specified in the schedule of
allowable fees prescribed by the Secretary of Labor
and Employment, or to make a worker pay any amount
greater than that actually received by him as a loan or
advance;
(b) To furnish or publish any false notice or
information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information
or document or commit any act of misrepresentation
for the purpose of securing a license or authority under
the Labor Code;
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any persons or
entity not to employ any worker who has not applied
for employment through his agency;
Report in Intro to law
(f) To engage in the recruitment of placement of
workers in jobs harmful to public health or morality or
to dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by
the Secretary of Labor and Employment or by his duly
authorized representative;
(h) To fail to submit reports on the status of
employment, placement vacancies, remittances of
foreign exchange earnings, separations from jobs,
departures and such other matters or information as
may be required by the Secretary of Labor and
Employment;
(i) To substitute or alter to the prejudice of the worker,
employment contracts approved and verified by
the Department of Labor and Employment from the
time of actual signing thereof by the parties up to and
including the period of the expiration of the same
without the approval of the Department of Labor and
Employment;
(j) For an officer or agent of a recruitment or
placement agency to become an officer or member of
the Board of any corporation engaged in travel agency
or to be engaged directly on indirectly in the
management of a travel agency;
(k) To withhol d or deny t ravel documents
from applicant workers before departure for
monetary or financial considerations other than those
authorized under the Labor Code and its implementing
rules and regulations;
(l) Failure to actually deploy without valid reasons as
determined by the Department of Labor and
Employment; and
(m) Failure to reimburse expenses incurred by the
workers in connection with his documentation and
processing for purposes of deployment, in cases where
the deployment does not actually take place without
the worker's fault.
Illegal recruitment when committed by a
syndicate or in large scale shall be
considered as offense involving economic
sabotage.
. Employment Administration, or the
Syndicate – is illegal recruitment carried out
by a group of three (3) or more persons conspiring
or confederating with one another.
Large scale –is illegal recruitment committ ed
against three (3) or more persons individually or as
a group.
The persons criminally liable for the above
offenses are the principals, accomplices and
accessories.
In case of juridical persons, the officers
having control, management or direction of
their business shall be liable.
An employee who was merely acting under
the direction of his superiors and was
unaware that his acts constituted a crime
may not be held criminally liable.
SEC. 7. PENALTIES
(a) Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than six
(6) years and one (1) day but not more than twelve (12)
years and a fine not less than two hundred thousand
pesos (P200,000.00) nor more than five hundred
thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not
less than five hundred thousand pesos (P500,000.00)
nor more than one million pesos (P1,000,000.00) shall
be imposed if illegal recruitment constitutes economic
sabotage as defined herein.
Provided, however, that the maximum penalty shall be
imposed if the person illegally recruited is less than
eighteen(18) years of age or committed by a non-
licensee or non-holder of authority.
SEC. 8. PROHIBITION ON OFFICIALS AND
EMPLOYEES
It shall be unlawful for:
1. Any official or employee of the
Department of Labor and
Employment, the Philippine Overseas
Overseas Workers Welfare
Prepared by: Nelson Aldrin A. Engaño
Administration, or the Department of
Foreign Affairs, or other government
agencies involved in the
implementation of this Act.
2. Or their relatives within the fourth
civil degree of consanguinity or
affinity, to engage, directly
or indirectly, in the business of
recruiting migrant workers as defined
in this Act. The penalties shall be
imposed upon them.
SEC. 9, VENUE
A criminal action arising from illegal recruitment as
defined herein shall be filed with the Regional Trial
Court of the province or city where the offense was
committed or where the offended party actually
resides at the same time of the commission of the
offense: Provided, That the court where the criminal
action is first filed shall acquire jurisdiction to the
exclusion of other courts. Provided, however, That the
aforestated provisions shall also apply to those
criminal actions that have already been filed in court at
the time of the effectivity of this Act.
SEC. 10. MONEY CLAIMS
But withstanding any provision of law to the contrary,
the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and
exclusive jurisdiction to hear and decide, within ninety
(90) calendar days after filing of the complaint, the
claims arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for overseas
deployment including claims for actual, moral,
exemplary and other forms of damages.
The liability of the principal/employer and
the recruitment/placement agency for any
and all claims under this section shall
be joint and several.
The performance bond to be filed by the
recruitment/placement agency, as provided
by law, shall be answerable for all money
claims or damages that may be awarded to
the workers.
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Such liabilities shall continue during the
entire period or duration of the employment
contract and shall not be affected by any
substitution, amend mentor modification
made locally or in a foreign country of the
said contract.
Any compromise/amicable settlement or
voluntary agreement on money claims
inclusive of damages under this section shall
be paid within four (4) months from the
approval of the settlement by the
appropriate authorit y.
In case of termination of overseas
employment without just, valid or
authorized cause as defined by law or
contract, the workers shall be entitled to
the full reimbursement of his placement fee
with interest of twelve percent (12%) per
annum, plus his salaries for the unexpired
portion of his employment contract or for
three (3) months for every year of the
unexpired term, whichever is less.
Non-compliance with the mandatory periods
for resolutions of cases provided under this
section shall subject the responsible officials
to any or all of the following penalties:(a)
The salary of any such official who fails to
render his decision or resolutions within the
prescribed period shall be, or caused to be,
withheld until the said official complies
therewith;(b) Suspension for not more than
ninety (90) days; or (c) Dismissal from the
service with disqualifications to hold any
appointive public office for five (5) years.
SEC. 12. PRESCRIPTIVE PERIODS
Illegal recruitment cases under this Act shall prescribe
in five (5) years: Provided, however, That illegal
recruitment cases involving economic sabotage as
defined herein shall prescribe in Twenty (20) years.
SEC. 15. REPATRIATION OF WORKERS;
EMERGENCY REPATRIATION FUND
Report in Intro to law
The repatriation of the worker and the transport of
his personal belongings shall be the primary
responsibility of the agency which recruited
or deployed the worker overseas. All costs attendant to
repatriation shall be borne by or charged to the agency
concerned and/or its principal. Likewise, the
repatriation of remains and transport of the
personal belongings of a deceased worker and all costs
attendant thereto shall be borne by the principal and/or
local agency.
However, in cases where the termination
of employment is due solely to the fault of the worker,
the principal/employer or agency shall not in any
manner be responsible for the repatriation of
the former and/or his belongings.
The Overseas Workers Welfare Administration
(OWWA), in coordination with appropriate
international agencies, shall undertake the repatriation
of workers in cases of war, epidemic, disasters or
calamities, natural or man-made, and other similar
events without prejudice to reimbursement by the
responsible principal or agency. However, in cases
where the principal or recruitment agency cannot be
identified, all costs attendant to repatriation shall be
borne by the OWWA.
Parties to overseas employment contracts are allowed
to agree on terms and conditions, but the stipulations
should not contradict Philippine law, public policy and
morals.
The Welfare Fund for Overseas Workers
Administration (OWWA) was intended to provide
social welfare services.
The principal agency has to advance the air transport
fare to the Philippines and immediately bring back the
workers, as needed. If the cause of termination is due
solely to the fault of the worker, the principal or
agency may recover the cost of repatriation from the
worker after return to the country. They cannot remain
stranded in a foreign land just because of a pending
legal proceeding (Equi-Asia Placement Inc. vs. DFA
and DOLE,GR No. 152214, September 19, 2006)
. authority.
Chapter II
REGULATION OF RECRUITMENT AND
PLACEMENT ACTIVITIES
Art. 25. Private sector participation in the recruitment
and placement of workers.
The private employment sector shall participate in the
recruitment and placement of workers, locally and
overseas, under such guidelines, rules and regulations
as may be issued by the Secretary of Labor.
Art. 26. Travel agencies prohibited to recruit.
Travel agencies and sales agencies of airline
companies are prohibited from engaging in the
business of recruitment and placement of workers for
overseas employment whether for profit or not. Art.
27. Citizenship requirement.
Only Filipino citizens or corporations, partnerships or
entities at least seventy-five percent (75%) of the
authorized and voting capital stock of which is owned
and controlled by Filipino citizens
shall be permitted to participate in the recruitment and
placement of workers, locally or overseas.
Art. 28. Capitalization.
All applicants for authority to hire or renewal of
license to recruit are required to have such substantial
capitalization as determined by the Secretary of Labor.
Art. 29. Non-transferability of license or authority.
No license or authority shall be used directly or
indirectly by any person other than the one in whose
favor it was issued or at any place other than that stated
in the license or authority be transferred, conveyed or
assigned to any other person or entity. Any transfer of
business address, appointment or designation of any
agent or representative including the establishment of
additional offices anywhere shall be subject to the prior
approval of the Department of Labor.
Art. 30. Registration fees.
The Secretary of Labor shall promulgate a schedule of
fees for the registration of all applicants for license or
Art. 31. Bonds.
Prepared by: Nelson Aldrin A. Engaño
All applicants for license or authority shall post such
cash and surety bonds as determined by the
Secretary of Labor to guarantee compliance with
prescribed recruitment procedures, rules and
regulations, and terms and conditions of employment
as may be appropriate.
Art. 32. Fees to be paid by workers.
Any person applying with a private fee-charging
employment agency for employment assistance shall
not be charged any fee until he has obtained
employment through its efforts or has actually
commenced employment. Such fee shall be always
covered with the appropriate receipt clearly showing
the amount paid. The Secretary of Labor shall
promulgate a schedule of allowable fees.
Art. 33. Reports on employment status.
Whenever the public interest requires, the Secretary of
Labor may direct all persons or entities within the
coverage of this Title to submit a report on the status of
employment, including job vacancies, details of job
requisitions, separation from jobs, wages, other terms
and conditions and other employment data.
Art. 34. Prohibited practices.
These prohibited acts constitutes illegal recruitment as
redefined by RA No. 8042.
Art. 35. Suspension and/or cancellation of license or
authority.
The Minister of Labor shall have the power to suspend
or cancel any license or authority to recruit employees
for overseas employment for violation of rules and
regulations issued by the Ministry of Labor, the
Overseas Employment Development Board, or for
violation of the provisions of this and other applicable
laws, General Orders and Letters of Instructions.
A recruitment agency is solidarily liable for
the unpaid salaries of a worker it recruited
for employment with foreign principal.
Even if the recruitment agency and the
principal had already ended their agency
agreement at the tim the worker was injured,
the recruitment agency may still be sued for
Page 6 of 12
violation of the employment contract, if no
notice of the agency agreement's termination
was given to the employee.
Chapter III
MISCELLANEOUS PROVISIONS
Art. 36. Regulatory power.
The Secretary of Labor shall have the power to restrict
and regulate the recruitment and placement activities
of all agencies within the coverage of this Title and is
hereby authorized to issue orders and promulgate rules
and regulations to carry out the objectives and
implement the provisions of this Title.
Art. 37. Visitorial Power.
The Secretary of Labor or his duly authorized
representatives may, at any time, inspect the premises,
books of accounts and records of any person or entity
covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of
any provisions of this Title.
Art. 38. Illegal recruitment.
Such acts are already contained in RA No. 8042.
Title II
EMPLOYMENT OF NON-RESIDENT ALIENS
Art. 40. Employment permit of non-resident aliens.
Any alien seeking admission to the Philippines
for employment purposes and any domestic or foreign
employer who desires to engage an alien for
employment in the Philippines shall obtain an
employment permit from the Department of Labor.
The employment permit may be issued to a non-
resident alien or to the applicant employer after a
determination of the non-availability of a person in the
Philippines who is competent, able and willing at the
time of application to perform the services for which
the alien is desired.
For an enterprise registered in preferred areas of
investments, said employment permit may be issued
upon recommendation of the government agency
charged with the supervision of said registered
enterprise.
Report in Intro to law
Art. 41. Prohibition against transfer of employment
After the issuance of an employment permit, the alien
shall not transfer to another job or change his employer
without prior approval of the Secretary of Labor.
Any non-resident alien who shall take up employment
in violation of the provision of this Title and its
implementing rules and regulations shall be punished
in accordance with the provisions of Articles 289 and
290 of the Labor Code.
In addition, the alien worker shall be subject to
deportation after service of his sentence
. (c)Possess the abilit y t o c ompr ehend a nd
Art. 42. Submission of list.
Any employer employing non-resident foreign
nationals on the effective date of this Code shall
submit a list of such nationals to the Secretary of Labor
within thirty (30) days xxxx. The Secretary of Labor
shall then determine if they are entitled to an
employment permit.
Permits to be issued:
Alien Employment Permit (AEP) – for non-resident
alien
Alien Employment Registration Certificate
(AERC) –for resident alien
BOOK TWO
HUMAN RESOURCES DEVELOPMENT
PROGRAM
Title II
TRAINING AND EMPLOYMENT OF SPECIAL
WORKERS
Chapter I
APPRENTICES
Art. 58. Definition of Terms. Apprenticeship –
practical training on the job supplement ed by
related theoretical instruction.
Apprentice –is a worker who is covered b y a
written apprenticeship agreement with an individual
employer or any of the entities recognized under this
Chapter.
Apprenticeable occupation – any trade, form of
employment or occupation which requires more than
three (3) months of practical training on the job
supplemented by related theoretical instruction.
Art. 59. Qualifications of apprentice.
(a)Be at least fourteen (14) years of age;
(b)Possess vocational aptitude and capacity
for appropriate tests; and
follow or a l and written instructions.
Art. 60. Employment of apprentices.
Only employers in the highly technical industries may
employ apprentices and only in apprenticeable
occupations approved by the Secretary of Labor and
Employment.
Art. 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
apprenticeship.
Art. 65. Investigation of violation of apprenticeship
agreement.
Upon complaint of any interested person or upon its
own initiative, the appropriate agency of the
Department of Labor and Employment or its
authorized representative shall investigate any
violation of an apprenticeship agreement pursuant to
such rules and regulations as may be prescribed by the
Secretary of Labor and Employment.
Prepared by: Nelson Aldrin A. Engaño
Art. 66. Appeal to the Secretary of Labor and
Employment.
The decision of the authorized agency of the
Department of Labor and Employment may be
appealed by any aggrieved person to the Secretary of
Labor and Employment within five(5) days from
receipt of the decision.
The decision of the Secretary of Labor and
Employment shall be final and executory.
Art. 67. Exhaustion of administrative remedies.
No person shall institute any action for the
enforcement of any apprenticeship agreement or
damages for breach of any such agreement, unless he
has exhausted all available administrative remedies.
Art. 70. Voluntary organization of apprenticeship
programs; exemptions.
General rule:
The organization of apprenticeship program shall be
primarily a voluntary undertaking by employers;
Exceptions:
(a) When national security or particular
requirements of economic development
so demand, the President of the
Philippines may require compulsory
training of apprentices in certain trades,
occupations, jobs or employment levels
where shortage of trained manpower is
deemed critical as determined by the
Secretary of Labor and Employment.
Appropriate rules in this connection
shall be promulgated by the Secretary
of Labor and Employment as the need
arises; and
(b) Where services of foreign technicians
are utilized by private companies in
apprenticeable trades, said companies
are required to set up appropriate
apprenticeship programs.
Art. 71. Deductibility of training costs
Page 7 of 12
An additional deduction from taxable income of one-
half (1/2) of the value of labor training expenses
incurred for developing the productivity and efficiency
of apprentices shall be granted to the person or
enterprise organizing an apprenticeship program:
Provided: That such program is duly
recognized by the Department of Labor and
Employment:
Provided, further, That such
deduction shall not exceed ten
(10%) percent of direct labor
wage: and
◦Provided, finally, That
the person or enterprise
who wishes
avail himself or itself
of this incentive
should pay
apprentices
minimum wage.
Art. 72. Apprentices without compensation.
The Secretary of Labor and Employment may
authorize the hiring of apprentices without
compensation
(a) whose training on the job is required by
◦the school or
◦training program curriculum
(b) or as requisite for
◦graduation or
◦board examination.
Notes:
In relation to Art. 72, the Implementing
Rules provide that there is no employer-
employee relationship between students on
one hand, and schools on the other, where
there is written agreement under which the
former agree to work for the latter in
exchange for the privilege to study free of
charge, provided the students are given
real opportunities to finish their chosen
courses under such agreement.
Report in Intro to law
However, in the case of Filamer Christian
Institute vs. Hon. Intermediate Apellate Any employer desiring to employ learners shall enter Similarities: Similarities:
Court, et. al., GR No. 75112, August 17, into a learnership agreement with them, which
1992, the Supreme Court that the applicable agreement shall include: Both mean training periods Both mean training periods
law was Art. 2180 of the Civil Code and not for jobs requiring skills that for jobs requiring skills that
the Labor Code's implementing rule. The names and addresses of the learners; can be acquired through can be acquired through
Under Art. 2180, an injured party shall have actual work experience actual work experience
recourse against the servant as well as the The duration of the learnership period,
petitioners school for whom, at the time of which shall not exceed three (3) months; Both may be paid wages Both may be paid wages
twenty-five percent lower twenty-five percent lower
incident, the servant was performing an act
than the applicable than the applicable
in furtherance of the interest and for the The wages or salary rates of the learners minimum wage minimum wage
benefit of the school. which shall begin at not less than seventy-
five percent (75%) of the applicable Distinctions: Distinctions:
Four-Fold Test in Determining Employer-Employee minimum wage; and A learner trains in semi-
Relationship skilled job or in industrial An apprentice trains in a
A commitment to employ the learners if occupations that require highly skilled job or in a
1. the selection and engagement of the they so desire, as regular employees upon job found only in highly
to employee completion of the learnership. Allowed even for non technical industry
2. the payment of wages technical jobs
3. the power of dismissal All learners who have been allowed or suffered to Allowed only in highly
his 4. the employer's power to control with work during the first two (2) months shall be deemed Training shall not exceed technical industries
the respect to the means and methods by regular employees if training is terminated by the three months
which the work is to be accomplished employer before the end of the stipulated period Training exceeds three
(Brotherhood vs. Zamora) through no fault of the learners. A learner is not an months
apprentice
Conceptually, an
Chapter II The learnership agreement shall be subject to
An employer is committed apprentice is also a learner
LEARNERS inspection by the Secretary of Labor and Employment to hire the learner-trainee
or his duly authorized representative. as an employee after the In apprenticeship, no such
Art. 73. Learners defined. training period commitment exists
Art. 76. Learners in piecework.
Learners – persons hired as trainees in semi-skilled
and other industrial occupations which are non- Learners employed in piece or incentive-rate jobs
apprenticeable and which may be learned through during the training period shall be paid in full for the Chapter III
practical training on the job in a relatively short period work done. HANDICAPPED WORKERS
of time which shall not exceed three (3)months.
Art. 77. Penalty clause. Art. 78. Definition.
Art. 74. When learners may be hired.
Any violation of this Chapter or its implementing rules Handicapped workers – those whose earning capacity
Learners may be employed when: and regulations shall be subject to the general penalty is impaired by age or physical or mental deficiency or
clause provided for in this code. injury.
1. No experienced workers are available;
Learnership vs. Apprenticeship Art. 79. When employable.
2. The employment of learners is necessary to Handicapped workers may be employed:
prevent curtailment of employment Learenrship Apprenticeship
opportunities; and, 1. When their employment is necessary to
prevent curtailment of employment
3. The employment does not create unfair opportunities; and,
competition in terms of labor costs or impair
or lower working standards.
Art. 75. Learnership agreement.
Prepared by: Nelson Aldrin A. Engaño
Page 8 of 12
2. When it does not create unfair
competition in labor costs or impair or
lower working standards.
Art. 80. Employment agreement.
Any employer who employs handicapped workers
shall enter into an employment agreement with them,
which agreement shall include:
The names and addresses of the
handicapped workers to be employed;
The rate to be paid the handicapped workers
which shall not be less than seventy five
(75%) percent of the applicable legal
minimum wage;
The duration of employment period; and
The work to be performed by handicapped
workers.
The employment agreement shall be subject to
inspection by the Secretary of Labor or his duly
authorized representative.
Art. 81. Eligibility for apprenticeship.
Subject to the appropriate provisions of this Code,
handicapped workers may be hired as apprentices or
learners if:
their handicap is not such as to effectively
impede the performance of job operations in
the particular occupations for which they are
hired.
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.
Art. 136. Stipulation against marriage.
It shall be unlawful for an employer to require as a
condition of employment or continuation of
employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed
Report in Intro to law
resigned or separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman employee
merely by reason of her marriage.
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 inappropriate
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.
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.
REPUBLIC ACT NO. 9231
Law Eliminating the Worst Forms of Child Labor
Section 2. Section 12 of the same Act, as amended, is
hereby further amended to read as follows:
"Sec. 2. Employment of Children
-General Rule: Children below fifteen (15) years of age
shall not be employed
except:
1. When a child works directly under the: (a) sole
responsibility of his/her parents or legal guardian And
(b) where only members of his/her family are
employed: Provided, however, That his/her (c)
employment neither endangers his/her life, safety,
health, and morals, nor impairs his/her normal
development: Provided, further, That (d) the parent or
legal guardian shall provide the said child with the
prescribed primary and/or secondary education; or
2. Where a child's (a) employment or participation in
public entertainment or information through cinema,
theater, radio, television or other forms of media is
essential: Provided, That the (b) employment contract
is concluded by the child's parents or legal guardian,
(c) with the express agreement of the child concerned,
if possible, and the (d) approval of the Department of
Labor and Employment: Provided, further, That the
(e) 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 instit ute measures t o
prevent t he 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.”
Section 3. The same Act, as amended, is hereby
further amended by adding new sections to be
denominated as Sections 12-A, 12-B, 12-C, and 12-D
to read as follows:
Prepared by: Nelson Aldrin A. Engaño
"Sec. 2-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.
"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:
Page 9 of 12
"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
"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."
Section 5. Section 14 of the same Act is hereby
amended to read as follows:
"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 byproducts, gambling or any form of violence or
pornography
."
BOOK THREE CONDITIONS OF
EMPLOYMENT
Report in Intro to law
Title I
WORKING CONDITIONS AND REST PERIODS
Chapter I
HOURS OF WORK
Art. 82. Coverage.
The provisions of this Title
General Rule:
Working Conditions and rest periods shall apply to
employees in all establishments and undertakings
whether for profit or not.
Exceptions:
1. government employees
2. managerial employees
3. non-agricultural field personnel
4. officers or members of managerial staff
5. domestic helpers and persons in the personal
service of another, and
6. workers who are paid by results
Managerial employees – those whose primary duty
consists of the management of the establishment in
which they are employed or of a department or
subdivision thereof, and to other officers or members
of the managerial staff. Field personnel – those
non-agricult ural employees who regularly
perform their duties away from the principal place
of business or branch office of the employer and whose
actual hours of work in the field cannot be determined
with reasonable certainty.
Law prevails over a contract
The existence of a employer-employee relationship is
not a matter of stipulation; it is a question of law.
Employer-employee relationship is also a question of
fact – depends upon the fact of its case.
Employer-employee relationship may exist regardless
of the nature of the activities involved. The kind of
work is not definitive test of whether the worker is an
employee or not.
Employer – includes any person acting in the interest
of anemployer in relation to an employee… and an
“employee” includes any individual employed by an
employer (Art. 97)
Elements of“ tests” of employment relationship
“Right of control test” – wher e t he pers on for
whom the services are performed reserves a right to
control not only the end to be achieved but also the
means to be used in reaching such end.
The existing economic conditions prevailing between
the parties (certain economic parameters)–
ex. The inclusion of the employee in the payrolls, in
determining the relationship of employer-employee
relationship.
“four fold test”
a. the selection and engagement of the
employee
b. the payment of wages
c. the power of dismissal
d. the employer’s power to control the
employee with respect to the means and
methods by which the work is to be
accomplished
Evidence of Employment: Identification Card,
Vouchers, SSS Registration, Memorandum In
administrative and quasi-judicial proceedings,
“substantial evidence” is sufficient as a basis for
judgment on the existence of employer-employee
relationship. No particular form to evidence is required
to prove the existence of such relationship. Any
competence and relevant evidence to prove the
relationship may be admitted. (domasig vs. NLRC,
Sept.16, 1996)
Modes of Compensation, Not a test of Employment
Status
Prepared by: Nelson Aldrin A. Engaño
Employment relationship is one thing, pay
determination is another
Piece-rate, “boundary”, and “pakyaw” are merely
methods of pay computation and do not prove whether
the payee is an employee or not.
“Pakiao” does not make petitioners independent
contractors. Pakiao workers are considered employees
as long as the employer exercises control over the
means by which such workers are to perform their
work. (Zamudio v. NLRC, March25, 1990)
exercise of Employment Relationship Determined by
Law, Not by Contract (even if the parties call their
contract a “Contract of Lease of Services” under Art.
1642 of the Civil Code, the factual existence of an
employer-employee relationship still prevail)
WHEN EMPLOYMENT RELATIONSHIP PRESENT
1. Salaried Insurance Agents
2. School Teachers – university controls the
work of the members of its faculty)
3. Jeepney Driver, Taxi Driver, Barber –
jeepney owners/operators exercise
supervision and control over their drivers.
The owner as holder of the certificate of
public convenience must see to it that the
driver must follows the route prescribed by
the franchising authority and the rules
promulgated as regards its operation.
4. Piece-rate Workers
5. Street-hired Cargadores (note: wielded
the power of dismissal)
6. Fishermen
7. Workers in Movie Projects (therefore
entitled to the protection of the law and could not just
be terminated without valid and justifiable reason)
1 LABOR UNION AND
UNREGISTEREDASSOCIATIO
N AS EMPLOYER (Bautista v.
Inciong and Orlando Farm
Grower v. NLRC.)
Page 10 of 12
2 WHEN EMPLOYMENT
RELATIONSHIPABSENT; JOB
CONTRACTING
OR INDEPENDENT
CONTRACTOR) In labor only
contracting the employer-
employee relationship is between
the workers and the enterprise to
which they are supplied.
3 GENERAL RIGHT OF
EMPLOYER
OVER CONDITIONS OF
EMPLOYMENT –except as
limited by special law, an
employer is free to regulate,
according to his own discretion
and judgment, all aspects of
employment, including hiring,
work assignments, working
methods, time, place and manner
of work, tools to be used,
processes to be followed,
supervision of workers, working
regulations, transfer of
employees, work supervision, lay-
off of workers and discipline,
dismissal and recall of workers.
(San Miguel Brewery Sale v.
Ople)
4 So long as a company’s
prerogatives are exercised in good
faith for the advancement of
employer’s interest and not for
the purpose of defeating or
circumventing the right of the
employees under special laws
or under valid agreements, the SC
will uphold them. (San Miguel
Brewery Sale v. Ople)
5 Supervisors, like managers, not
entitled to overtime pay.
6 A taxi driver who is not observing
any working hour is not covered
by the eight-hour Labor Law.
Art. 83. Normal hours of work.
Report in Intro to law
The normal hours of work of any employee shall not
exceed eight (8) hours a day
. Resorted to by the employer to prevent
General Rule applicable to health personnel:
Health personnel in cities and municipalities with a
population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one
hundred (100) shall hold regular office hours for eight
(8) hours a day, for five (5) days a week, exclusive of
time for meals,
Exception: Where the exigencies of the service require
that such personnel work for six (6) days or forty-eight
(48) hours, in which case, they shall be entitled to an
additional compensation of at least thirty percent
(30%) of their regular wage for work on the si xth
da y.
Health personnel for the purpose of Art. 38 of the
Labor Code, they include resident physicians, nurses,
nutritionists, dietitians, pharmacists, social workers,
laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other
hospital or clinic personnel.
Part-time work – the wage and the benefits of a part-
timer are in proportion to the number of hours worked.
Forty-hour work week would not be applicable if
there is at raining agreement between the
resident physician and t he hospital and the
training program is duly accredited or approved by the
appropriate government agency.
Art. 84. Hours worked.
Hours worked shall include:
(a) all time during which an
employee is requir ed to be on
duty or to be at a prescribed workplace;
and
(b) all time during which an
employee is suff ered or permitted
to work.
(c) Rest peri ods of short durat ion
duri ng worki ng hours.
Rest periods of short duration during working hours
shall be counted as hours worked.
Compressed Work Week
serious losses due to causes beyond his
control.
Instead of working 6 days a week, the
employees will be regularly working for less
than 6 days but each workday exceeds 8
hours. For the hours exceeding 8 in a
workday, the employees waive their OT
pay because, in return, they will no longer
incur transport and other expenses.
Allowed on condition that it is freely agreed
upon between the employer and majority of
the employees. Further, the arrangement
should not diminish the employees' monthly
or daily pay or their established employment
benefits.
Extended workday in CWW should not
exceed 12work hours. Work exceeding 12
hrs in a day or 48hrs in a week should be
considered OT.
Waiting Time
(a) Waiting ti me spent b y an
employee s hall be considered as
working time if:
◦ waiting is an integral part of his
work, or
◦ the employer is required or
engaged by the employer to wait.
(b) Working whil e on call –an
employee who is r equired to
remain on call i n t he empl oyer's
premises or s o close thereto that he
cannot use the time effectively and
gainfully for his own purpose.
Art. 85. Meal periods.
Subject to such regulations as the Secretary of Labor
may prescribe, it shall be the duty of every employer to
Prepared by: Nelson Aldrin A. Engaño
give his employees not less than sixty (60) minutes
time-off for their regular meals.
General Rule: Not less than 1 hour time-off for
regular meals is non-compensable.
Except: Meal period of not less than 20 minutes in the
following cases is compensable hours worked.
(a)Where the work is nonmanual work in nature
or does not involve strenuous physical exertion;
(b)Where the establishment regularly operates not less
than sixteen hours a day;
(c)In cases of actual or impending emergencies
or there is urgent work to be performed on
machineries, equipment or installations to avoid
serious loss which the employer would otherwise
suffer; and,
(d)Where the work is necessary to prevent serious loss
of perishable goods
.
Rest periods or coffee breaks running from 5 to
20minutes are considered as compensable
working time.
To shorten meal time to less than 20 minutes is not
allowed. If the so-called “meal time” is less than
20minutes, it becomes only a rest period.
Art. 86. Night shift differential.
Every employee shall be paid a night shift
differential of not less than ten percent (10%) of his
regular wage for each hour of work performed between
ten o’clock in the evening and six o’clock in the
morning.
If work done between 10 pm and 6 am is OT
work, the NSD should be based on the OT
rate.
Employees Not Covered by Night Shift Differential
1. government employees;
2. retail and service establishments regularly
employing not more than five (5) workers;
Page 11 of 12
3. managerialemployees;
4. field personnel and other employees whose time
and performance is unsupervised by the employer; and,
5. domestic helpers, and persons in the personal service
of another.
Art. 87. Overtime work.
Work may be performed beyond eight (8) hours a
day provided that the employee is paid for the overtime
work, an additional compensation equivalent to his
regular wage plus at least twenty-five percent (25%)
thereof. Work performed beyond eight hours on a
holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight
hours on a holiday or rest day plus at least
thirty percent (30%) thereof.
Art. 88. Undertime not offset by overtime.
Undertime work on any particular day shall not be
offset by overtime work on any other day. Permission
given to the employee to go on leave on some other
day of the week shall not exempt the employer from
paying the additional compensation required in this
Chapter.
Reason: Offsetting the undertime hours against OT
hours would result in undue deprivation of the
employee's extra pay for OT work.
Right to OT cannot be waived. But when the
alleged waiver of OT pay is in consideration
of benefits and privileges which may even
exceed the OT pay, the waiver may be
permitted.
Art. 89. Emergency overtime work.
Any employee may be required by the employer to
perform overtime work in any of the following cases:
1. When the country is at war or
when any other national or local
emergency has been declared by
the National Assembly or the
Chief Executive;
Report in Intro to law
2. When it is necessary to prevent
loss of life or property or in case
of imminent danger to
public safety due to an actual or
impending emergency in the
locality caused by serious
accidents, fire, flood, typhoon,
earthquake, epidemic, or other
disaster or calamity;
3. When there is urgent work to be
performed on machines,
installations, or equipment, in
order to avoid serious loss or
damage to the employer or some
other cause of similar nature;
4. When the work is necessary to
prevent loss or damage to
perishable goods; and,
5. Where the completion or
continuation of the work started
before the eighth hour is
necessary to prevent serious
obstruction or prejudice to the
business or operations of the
employer.
6. When overtime work is
necessary to avail of favorable
weather or environmental
conditions where performance or
quality or work is dependent
thereon.
Any employee required to render overtime work under
this Article shall be paid the additional compensation
required in this Chapter.
Art. 90. Computation of additional compensation.
For purposes of computing overtime and other
additional remuneration as required by this Chapter,
the
"regular wage" of an employee shall include the cash
wage only, without deduction on account of facilities
provided by the employer.
Regular Wage – includes the cash wage only, without
deduction on account of facilities provided by the
employer.
Chapter II
WEEKLY REST PERIODS
Art. 91. Right to weekly rest day.
It shall be the duty of every employer, whether
operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four
(24) consecutive hours after every six (6) consecutive
normal work days.
The employer shall determine and schedule the weekly
rest day of his employees subject to collective
bargaining agreement and to such rules and regulations
as the Secretary of Labor and Employment may
provide. However, the employer shall respect the
preference of employees as to their weekly rest day
when such preference is based on religious grounds.
Business on Sundays/Holidays - all establishments
and enterprises may operate or open for business on
Sunday and Holidays provided that the employees are
given the weekly rest day and the befits as provided in
this Rule.
Weekly Rest Day – every employer shall give his
employees a rest period of not less than 24consecutive
hours after every six consecutive normal work days.
Preference of employee – the preference of the
employee as to his weekly day of rest shall be
respected by the employer if the same is based on
religious grounds.
◦The employee shall make known his
preference to the employer in writing at least
7 days before the desired effectivity of the
initial restday so preferred.
◦Where, however , the choice of the
employee as to his rest day based on
religious grounds will inevitably result in
serious prejudice or obstruction to the
operations of the undertaking and the
employer cannot normally be expected to
Prepared by: Nelson Aldrin A. Engaño
resort to other remedial measures, the
employer may so schedule the weekly rest
day of his choice for at least 2 days in a
month.
Schedules of Rest Day shall be made known to the
employees through written notices
posted conspicuously in the work place at least one
week before they become effective.
Art. 92. When employer may require work on a rest
day.
General Rule: The employer cannot compel
employees to work on a rest day.
Exceptions: The employer may require his employees
to work on any day:
1. In case of actual or impending emergencies
caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other
disaster or calamity to prevent loss of life
and property, or imminent danger to public
safety;
2. In cases of urgent work to be performed on
the machinery, equipment, or installation, to
avoid serious loss which the employer
would otherwise suffer;
3. In the event of abnormal pressure of
work due to special circumstances, where
the employer cannot ordinarily be expected
to resort to other measures;
4. To prevent loss or damage to perishable
goods;
5. Where the nature of the work requires
continuous operations and the stoppage of
work may result in irreparable injury or loss
to the employer;
6. Under other circumstances analogous or similar to
the foregoing as determined by the Secretary of Labor
and Employment; and
7. When the work is necessary to avail of favorable
Page 12 of 12
Chapter II
EMPLOYMENT OF MINORS
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 inappropriate
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.
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.
Chapter III
EMPLOYMENT OF HOUSE HELPERS
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 employer’s 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 employer’s
household, including services of family drivers.
Art. 142. Contract of domestic service.
Report in Intro to law
The original contract of domestic service shall not last
for more than two (2) years but it
may be renewed for such periods as may be agreed
upon by the parties.
Art. 143. Minimum wage.
Househelpers shall be paid the following minimum
wage rates:
(1) Eight hundred pesos (P800.00) a
month for househelpers in Manila,
Quezon, Pasay, and Caloocan cities
and municipalities of Makati, SanJuan,
Mandaluyong, Muntinlupa, Navotas,
Malabon, Parañaque, Las Piñas, Pasig,
Marikina, Valenzuela,Taguig and
Pateros in Metro Manila and in highly
urbanized cities;
(2) Six hundred fifty pesos (P650.00) a
month for tho sein other chartered
cities and first-class municipalities; and
(3) Five hundred fifty pesos (P550.00) a
month for those in other municipalities.
Provided, That the employers shall
review the employment contracts of
their househelpers every three (3) years
with the end in view of improving the
terms and conditions thereof. Provided,
further, That those househelpers who
are receiving at least One thousand
pesos (P1,000.00) shall be covered by
the Social Security System (SSS) and
be entitled to all the benefits provided
thereunder. (As amended by Republic
Act No. 7655, August 19, 1993)
Art. 144. Minimum cash wage.
The minimum wage rates prescribed under this Chapter
shall be the basic cash wages which shall be paid to the
househelpers in addition to lodging, food and
medical attendance.
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.
Art. 146. Opportunity for education.
If the househelper is under the age of eighteen (18) years,
the employer shall give him or her an opportunity for at
least elementary education.
The cost of education shall be part of the househelper’s
compensation, unless there is a stipulation to the contrary.
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.
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.
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 for
fifteen (15) days by way of indemnity. If the househelper
leaves without justifiable reason, he or she shall forfeit
any unpaid salary due him or her not exceeding fifteen
(15) days.
Art. 150. Service of termination notice.
If the duration of the household service is not
determined either in stipulation or by the nature of the
service, the employer or the househelper may give notice
to put an end to the relationship five (5) days before the
intended termination of the service.
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.
Art. 152. Employment record.
Prepared by: Nelson Aldrin A. Engaño
The employer may keep such records as he may deem
neces sary t o reflect the a ctual terms and
conditions of employment of his househelper, which
the latter shall authenticate by signature or thumbmark
upon request of the employer.
Chapter IV
EMPLOYMENT OF HOMEWORKERS
Art. 153. Regulation of industrial homeworkers.
The employment of industrial homeworkers and
field personnel shall be regulated by the government
through the 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.
Art. 154. Regulations of Secretary of Labor.
The regulations or orders to be issued pursuant to this
Chapter shall be designed to assure the minimum terms
and conditions of employment applicable to the industrial
homeworkers or field personnel involved.
Art. 155. Distribution of homework.
For purposes of this Chapter, the
Employer of homeworkers –includes any p ers on,
natural or artificial who, for his account or benefit, or
on behalf of any person residing outside the country,
directly or indirectly, or through an 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 an y goods, articles or
materials to be proc ess ed or
fabricated in or about a home and
then rebuys them after such
processing or fabrication, either by
himself or through some other
person.