Answers to Azucena’s Labor Standards Box Questions
PRELIMINARY TITLE The management also has its own rights which are
Chapter 1 – General Provisions
Box 1
1. What is Labor law and what does it aim to
achieve?
Labor legislation consists of statutes, regulations and
jurisprudence governing the relations between capital
and labor, by providing for certain employment
standards and a legal framework for negotiating,
adjusting and administering those standards and other
incidents of employment.
Labor standards law is that which sets out the
minimum terms, conditions and benefits of employees
that employers must provide or comply with and to which
employees are entitled to as a matter of legal right.
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.
Since labor laws are necessarily social legislation
(those laws that provide particular kinds of protection
or benefits to society or segments thereof in
furtherance of social justice), its aim and reason,
therefore, is social justice.
2. What are the Constitutional mandates pertaining
to labor and labor-management relations?
In Article II, Section 18 of the 1987 Constitution in its
Declaration of Principles and State Policies provides that:
“The State affirms labor as a primary social economic
force. It shall protect the rights of workers and promote
their welfare.”
The basic rights guaranteed by the Constitution are: the
right (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; and (7) to participate in policy and decision-
making processes affecting their rights and benefits as
may be provided by law.
L A B O R S T A N D A R D S b y A Z U C E N A
entitled to respect and enforcement. The most
fundamental of management rights are: right to return of
investment (ROI) and to make profit, right to prescribe
rules, right to select employees, and right to transfer or
discharge employees.
3. Do the Philippines labor laws meet international
labor standards?
Yes. The Philippines is a member of the International
Labor Organization (ILO) of the UN, a specialized agency
which seeks the promotion of social justice and
internationally recognized human and labor rights. The
Philippine Senate on March 19, 1948 passed Resolution
No. 44 concurring to the country’s acceptance of
obligations under the ILO’s Constitution and By-laws.
4. Are Philippine labor laws pro-labor?
Yes, since all doubts in the implementation and
interpretation of the Labor Code including its
implementing rules and regulation shall be resolved in
favor of labor. There is no doubt that the employer stands
on a higher footing than the employee – (1) there is
greater supply than demand for labor; and (2) the need
for employment by labor comes from vital, and even
desperate, necessity. However, it should not be supposed
that every labor dispute will be automatically decided in
favor of labor.
The policy is to extend the decree’s applicability to a
greater number of employees to enable them to avail of
the benefits under the law, in consonance with the State’s
avowed policy to give maximum aid and protection to
labor.
Chapter II – Emancipation of Tenants
Box 2
1. What law governs agrarian reform?
The Labor Code covers agrarian reform in five
articles (Art. 7 to 11) only. It is a subject governed
principally by R.A. 6657 (Comprehensive Agrarian
Reform Law of 1988).
2. What are the objectives of agrarian reform?
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 Art. 7 of the Labor Code states the Statement of
Objectives: “Inasmuch as the old concept of land
ownership by a few has spawned valid legitimate
grievances that gave rise to the violent conflict and
social tension and the redress of such legitimate
grievances being one of the fundamental objectives of
the New Society, it has become imperative to start
reformation with the emancipation of the tiller of the
soil from his bondage.”
Further, the Constitution states in Article XIII, Section
4 that: The State shall, by law, undertaken an agrarian
reform program founded on the right of farmers and
regular farmworkers, who are landless, to own
directly or collectively the lands they till or in the case
of other farmworkers, to receive a just share of the
fruits thereof. To this end, the State shall encourage
and undertake the just distribution of all agricultural
lands, subject to such priorities and reasonable
retention limits as the Congress may prescribe,
taking into account ecological, developmental, or
equity considerations, and subject to the payment of
just compensation. In determining retention limits,
the State shall respect the right of small landowners.
The State shall further provide incentives for
voluntary land-sharing.
3. What process and conditions are observed to
make a tenant-farmer an owner under the
agrarian reform program?
Ans: R.A. 6657 sets retention limits for landowners.
Sec. 6 provides the retention limits and Sec. 16 sets
forth the procedure to make a tenant-farmer an
owner under the agrarian reform law.
SEC. 6. Retention Limits. - Except as otherwise
provided in this Act, no person may own or retain,
directly, any public or private agricultural land, the
size of which shall vary according to factors
governing a viable family-sized farm, such as
commodity produced, terrain, infrastructure, and soil
fertility as determined by the Presidential Agrarian
Reform Council (PARC) created hereunder, but in no
case shall the retention by the landowner exceed five
(5) hectares. Three (3) hectares may be awarded to
each child of the landowner, subject to the following
qualifications: (1) that he is at least fifteen (15) years
of age; and (2) that he is actually tilling the land or
directly managing the farm: Provided, That
landowners whose lands have been covered by
Presidential Decree No. 27 shall be allowed to keep
the area originally retained by them thereunder;
Provided, further, That original homestead grantees
L A B O R S T A N D A R D S b y A Z U C E N A
or direct compulsory heirs who still own the original
homestead at the time of the approval of this Act shall
retain the same areas as long as they continue to
cultivate said homestead.
Sec. 16. Procedure for Acquisition of Private Lands.-
For purposes of acquisition of private lands, the
following procedures shall be followed:
(a) After having identified the land, the landowners
and the beneficiaries, the DAR shall send its notice to
acquire the land to the owners thereof, by personal
delivery or registered mail, and post the same in a
conspicuous place in the municipal building and
barangay hall of the place where the property is
located. Said notice shall contain the offer of the DAR
to pay a corresponding value in accordance with the
valuation set forth in Sections 17, 18, and other
pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of
written notice by personal delivery or registered
mail, the landowner, his administrator or
representative shall inform the DAR of his acceptance
or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the
LBP shall pay the landowner the purchase price of the
land within thirty (30) days after he executes and
delivers a deed of transfer in favor of the Government
and surrenders the Certificate of Title and other
muniments of title.
(d) In case of rejection or failure to reply, the DAR
shall conduct summary administrative proceedings
to determine the compensation of the land by
requiring the landowner, the LBP and other
interested parties to summit evidence as to the just
compensation for the land, within fifteen (15) days
from the receipt of the notice. After the expiration of
the above period, the matter is deemed submitted for
decision. The DAR shall decide the case within thirty
(30) days after it is submitted for decision.
(e) Upon receipt by the landowner of the
corresponding payment or in case of rejection or no
response from the landowner, upon the deposit with
an accessible bank designated by the DAR of the
compensation in cash or LBP bonds in accordance
with this Act, the DAR shall take immediate
possession of the land and shall request the proper
Register of Deeds to issue a Transfer Certificate of
Title (TCT) in the name of the Republic of the
Philippines. The DAR shall thereafter proceed with
the redistribution of the land to the qualified
beneficiaries.
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 (f) Any party who disagrees with the decision may
bring the matter to the court of proper jurisdiction
for final determination of just compensation.
Art. 10 of the Labor Code provides the Conditions of
Ownership, to wit: “No title to the land shall be
acquired by the tenant farmer pursuant to
Presidential Decree No. 27 shall be actually issued to
him unless and until he has become a full-fledged
member of a duly-recognized farmers’ cooperative.
Title to the land acquired pursuant to Presidential
Decree No. 27 shall not be transferrable EXCEPT by
HEREDITARY SUCCESSION or to the GOVERNMENT
in accordance with the provisions of P.D. 27, the Code
of Agrarian Reforms and other existing laws and
regulations.
Title 1 – Recruitment and Placement of Workers
Chapter I – General Provisions
Box 3
1. What government agencies are created to
promote employment opportunities?
DOLE – carries out programs for local and overseas
employment.
BLE – effective allocation of manpower resources in
local employment.
POEA – for overseas employment.
2. How does the POEA protect and assist the OFWs?
Among the principal functions of the POEA are the
formulation, implementation, and monitoring of the
overseas employment of Filipino workers and the
protection of their rights to fair and equitable
employment practices. POEA also participates in the
deployment of Filipino workers through
government-to-government hiring. It has extended
its services nationally through its regional extension
units. They process vacationing workers, register
sea-based workers, and participate in government
hiring through manpower pooling.
3. Who has adjudicatory jurisdiction over claims by
OFWs?
NLRC has adjudicatory jurisdiction over claims by
OFWs. It is provided under RA 8042, that the
jurisdiction of NLRC covers not only claims involving
Filipino workers for overseas employment but also
L A B O R S T A N D A R D S b y A Z U C E N A
money claims involving Filipino workers for overseas
deployment.
4. What significant amendments to the Labor Code
are introduced by RA 8042?
Article 17 of the Labor Code has been amended by RA
8042 known as the “Migrant Workers and Overseas
Filipinos Act of 1995.” The law institutes the policies
on overseas employment and establishes a higher
standard of protection and promotion of the welfare
of migrant workers, their families and of overseas
Filipinos in distress. It applies to recruitment for
overseas employment.
The OEDB, NSB and the overseas employment
program of the Bureau of Employment Services were
united in a single structure-POEA. However,
adjudicatory jurisdiction of the POEA has been
transferred to the NLRC by application of RA 8042.
Selective deployment – the state shall deploy
overseas Filipino workers only in countries where
the rights of Filipino migrant workers are protected.
5. Are POEA-approved employment contracts
immutable?
NO. While the POEA Standard Contract must be
recognized and respected, neither the manning agent
nor the employer can simply prevent a seafarer from
being deployed without a valid reason. Thus, with
valid reason POEA-approved employment contracts
may be immutable.
Chapter II – Regulations of Recruitment and Placement
Activities
Box 4
1. What are the requirements and restrictions for the
private sector's participation in recruitment and
placement of workers, local and overseas?
Requirements:
Article 27. Citizenship requirement. Only Filipino citizens
or corporations, partnerships or entities at least 75
percent 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.
Article 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 and Employment.
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Restrictions:
Article 26. 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.
Article 29. No license or authority shall be used directly
or indirectly by any person other than the one in whose
favor it was issued at any place other than that stated in
the license or authority, nor may such 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
and Employment.
2. What acts or practices are prohibited in recruitment
and placement activities of licensed recruiters?
Article 34. Prohibited practices. It shall be unlawful for
any individual, entity, licensee or holder of authority:
(a) To charge or accept directly or indirectly any
amount greater than that 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 or misrepresentation for the
purpose of securing a license or authority under this
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 person or
entity not to employ any worker who has not applied for
employment through his agency;
(f) To engage in the recruitment or placement of
workers in jobs harmful to public health or morality or to
the 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 representatives;
(h) To fail to file reports on the status of employment,
placement vacancies, remittance of foreign exchange
earnings, separation 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 employment contracts
approved and verified by the Department of Labor and
L A B O R S T A N D A R D S b y A Z U C E N A
Employment from the time of actual signing thereof by
the parties up to and including the period of expiration of
the same without the approval of the Department of
Labor and Employment.
(j) To become officer or member of the Board of any
corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel
agency;
(k) To withhold or deny travel documents from
applicant workers before departure for monetary or
financial considerations other than those authorized
under this Code and its implementing rules and
regulations.
3. On what grounds and by which office may an
employment license or recruitment permit be
cancelled?
The DOLE Secretary and POEA Administrator have
concurrent jurisdiction to suspend or cancel a license on
the following grounds:
Under the Labor Code, Art. 35: for violation of rules and
regulations issued by the Secretary of Labor and
Employment, the Overseas Employment Development
Board, and the National Seamen Board, or for violations
of the provisions of this and other applicable laws,
General Orders and Letters of Instructions.
Under the POEA Rules: charging a fee before the worker
is employed or in excess of the authorized amount; doing
recruitment in places outside its authorized areas;
deploying workers without processing through the POEA;
substituting or altering employment contracts;
publishing job announcements without the POEA’s prior
approval.
Chapter III – Miscellaneous Provisions
Box 5
1. With the amendments made by the “Migrant
Workers and Overseas Filipino act” ( R.A. 8042),
what acts constitute illegal recruitment and who
are the persons that can be held liable?
The following acts constitute illegal recruitments,
whether committed by any persons, whether a non-
licensee, non-holder, licensee or holder of authority:
(1) Overcharging;
(2) False notice;
(3) Misrepresentation to secure license or authority;
(4) Inducing worker to quit;
(5) Influencing not to employ;
(6) Recruitment for harmful jobs;
(7) Obstructing inspection;
(8) Contract substitution.
(9) Misrepresentation in documentation;
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 (10) Non-submission of reports;
(11) Involvement in travel agency;
(12) Withholding of documents;
(13) Failure to deploy;
(14) Failure to reimburse;
(15) Non-Filipino manager;
(16) Excessive interest;
(17) Specifying a loan entity;
(18) Non-renegotiation of loan;
(19) Specifying a medical entity;
(20) Specifying a training entity
(21) Violation of Suspension;
(22) Collection of insurance premium.
Persons liable are: The persons criminally liable for illegal
recruitment are the principals, accomplices and
accessories. In case of juridical persons, the officers
having control, management or direction of their
business shall be liable.
2. Under what circumstances is illegal recruitment
an offense involving economic sabotage?
Illegal recruitment when committed by a syndicate or in
large scale shall be considered as offense involving
economic sabotage.
Illegal recruitment is deemed committed by a syndicate
carried out by a group of 3 or more persons conspiring or
confederating with one another. It is deemed committed
in large scale if committed against 3 or more persons
individually or as a group.
3. Is the secretary of labor legally authorized to
order the arrest of an illegal recruiter?
No. Under Article III, Section 2 of the 1987 Constitution,
it is only the judges, no other, who may issue warrants of
arrest and search.
However, the Secretary of Labor or his duly authorized
representatives may cause the lawful arrest of illegal
recruiters either:
(a) by virtue of a judicial warrant issued by the RTC,
MTC or MCTC judge, as the case may be, or
(b) without judicial warrant, under the provisions of
Section 5, Rule 113 of the 1985 rules on criminal
procedure, as amended by A.M. no. 00-5-03-SC
May he order the closure of an illegal recruitment office?
Yes, the Secretary of Labor or his duly authorized
representative may order the closure of illegal
recruitment establishment.
L A B O R S T A N D A R D S b y A Z U C E N A
Title II – Employment of Non-resident Aliens
Box 6
1. Who are the foreign nationals that cannot work in
the Philippines without an employment permit?
Art. 40 requires only non-resident aliens to secure
employment permit.
2. Who are exempt from such requirement?
a. All members of the diplomatic service and foreign
government officials accredited by and with the
reciprocity arrangement with the Philippine
government;
b. Officers and staff of the international organizations of
which the Philippine government is a member, and
their legitimate spouses desiring to work in the
Philippines;
c. Foreign nationals elected as members of the
governing board who do not occupy any other
position, but have only voting rights in the
corporation;
d. All foreign nationals granted exemption by the law;
e. Owners and representatives of foreign principals
whose companies are accredited by the POEA, who
come to the Philippines for a limited period and
solely for the purpose of interviewing Filipino
applicants for employment abroad;
f. Foreign nationals who come to the Philippines to
teach, present and/or conduct research studies in
universities and colleges visiting, exchange or
adjunct professors under formal agreements
between the universities or colleges in the
Philippines and foreign universities or colleges; or
between the Philippine government and foreign
government; provided that the exemption is on a
reciprocal basis; and
g. Resident foreign nationals.
Book Two – Human Resources Development
Title I – National Manpower Development Program
Chapter I – National Policies and Administrative
Machinery for their Implementation
Box 7
1. What is TESDA and what are its responsibilities?
Technical Education and Skills Development Authority
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TESDA replaced and absorbed the National Manpower
and Youth Council (NMYC), the Bureau of Technical
and Vocational Education (BTVE) and the personnel
and functions pertaining to technical-vocational
education in the regional offices of the Department of
Education, Culture and Sports (now DepEd) and the
apprenticeship program of the Bureau of Local
Employment of the Department of Labor Employment.
The TESDA shall primarily be responsible for
formulating, continuing, coordinating and fully
integrating technical education and skills development
policies, plans and programs taking into consideration
the following:
a) The state policy declared herein of giving new direction
and thrusts to efforts in developing the quality of Filipino
human resource through technical education and skills
development;
b) The implementation of the above-mentioned policy
requires the coordination and cooperation of policies,
plans and programs of different concerned sectors of
Philippine society;
c) Equal participation of representatives of industry
groups, trade associations, employers, workers and
government shall be the rule in order to ensure that
urgent needs and recommendations are readily
addressed; and
d) Improved linkages between industry, labor and
government shall be given priority in the formulation of
any national-level plan
2. How may the success or failure of TESDA be
measured?
Every 5 years, after the effectivity of the Act, an
independent review panel composed of 3 persons
appointed by the President shall review the performance
of the Authority and shall make recommendations based
on its findings to the President and to both Houses of
Congress.
The success or failure of TESDA may be measured by
checking whether the policy of the TESDA Act of 1994 has
been observed, carried out and realized: to provide
relevant, accessible, high quality and efficient technical
education and skills development in support of the
development of high quality Filipino middle-level
manpower responsive to and in accordance with
Philippine development goals and priorities; to
L A B O R S T A N D A R D S b y A Z U C E N A
encourage active participation of various concerned
sectors, particularly private enterprises, being direct
participants in and immediate beneficiaries of a trained
and skilled workforce, in providing technical education
and skills development opportunities.
Book Three – Conditions of Employment
Title I – Working Conditions and Rest Periods
Chapter I – Hours of Work
Box 8
1. Obviously, the law on conditions of employment
cannot apply if employer-employee relationship
does not exist between the parties. In law who is
considered an employee? An employer?
Employer is one who employs the services of
another; one for whom a person works and who
controls or supervises the means, manner or
method of doing the work and from whom the
worker gets his salary.
Employee is one who is engaged in the service of
another, who performs services for another; his
work is subject to control of the employer not
only as to the result but the manner and means of
doing it.
Employer — Any person, natural or juridical,
domestic or foreign, who carries on in the Philippines
any trade, business, industry, undertaking, or activity
of any kind and uses the services of another person
who is under his orders as regards the employment.
Employee — Any person who performs services for
an employer in which either or both mental and
physical efforts are used and who receives
compensation for such services, where there is an
employer-employee relationship
2. What are the implications or consequences of the
existence of the employment relationship? Who
are employees excluded from the coverage of the
law on employment conditions?
The implications or consequences of the existence of
employment relationship are that the employee shall be
entitled to the protection of the law and could not just be
terminated without valid and justifiable reason. (Great
Pacific Life Assurance Corp. v. Judico). The existence of an
P a g e 6 | 20
employer-employee relationship “spawns obligations
connected with workmen’s compensation, social security,
medicare, termination pay, and unionism” (Brotherhood
Labor Unity Movement of the Phils. v. Zamora). It also
implicates that the employer and employee are bound
to observe and comply with the provisions in the
Labor Code pertaining to normal hours of work, meal
periods, night shift differential, overtime work, weekly
rest periods, holidays, service incentive leaves and
service charges, payment of wages, minimum wage rates,
among others.
The provisions on Working Conditions and Rest Periods
discussed in Title I (Articles 82 to 96) of the Labor Code
applies to all employees in all establishments, except for
the following:
a. Government. employees
b. Managerial employees, including other officers or
members of the managerial staff
c. Field personnel
d. Employer’s family member who depend on him for
support
e. Domestic helpers
f. Persons in the personal service of another
g. Workers who are paid by results as determined
under DOLE regulations.
3. What are the rights and responsibilities of the
employer and the employees as regards
determination and observance of work hours?
Article 83. Normal hours of work. The normal hours
of work of any employee shall not exceed eight (8)
hours a day.
Article 84. Hours worked. Hours worked shall include
a) all time during which an employee is required to
be on duty or to be at a prescribed workplace, and b)
all time during which an employee is suffered or
permitted to work. Rest periods of short duration
during working hours shall be counted as hours
worked.
Article 85. Meal periods. Subject to the regulations as
the Secretary of Labor may prescribe, it shall be the
duty of every employer to give his employees not less
than sixty (60) minutes time-off for their regular
meals.
Article 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.
L A B O R S T A N D A R D S b y A Z U C E N A
Article 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.
Article 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.
Article 89. Emergency overtime work. Any employee
may be required by the employer to perform
overtime work…
4. In law what are considered hours worked? Which
ones are “unworked”, hence not compensable? Is
lunch break compensable? What travel hours
should be paid?
Principles in determining hours worked:
1. All hours which the EE is required to give to his ER
regardless of whether or not such hours are spent in
productive labor or involve physical or mental exertion;
2. An EE need not leave the premises of his workplace
in order that his rest period shall not be counted, it being
enough that: he stops working, may rest completely, and may
leave his workplace, to go elsewhere, whether within or
outside the premises of the workplace;
3. If the work performed was necessary, or it
benefited the ER, or the EE could not abandon his work at the
end of his normal working hours because he had no
replacement, all time spent for such work is considered hours
worked if the work was with the knowledge of his ER or his
immediate supervisor;
4. The time during which an EE is inactive by reasons
of interruptions in his work beyond his control shall be
considered working time if the imminence of the resumption
of the work requires the EE’s presence at the place of work or
if the interval is too brief to be utilized effectively and gainfully
in the EE’s own interest.
As rule hours worked shall include:
(a) All time during which an employee is required to be
on duty or to be at prescribed workplace.
(b) All the time during which an employee is suffered or
permitted to work.
Rest periods of short duration during working hours
shall be counted as hours worked.
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The following are considered worked;
• Waiting time spent by an employee if waiting is
considered an integral part of his work or if the
employee is required or engaged by an employer to wait
(engaged to wait)
• Meal time if employee is not completely freed or
relieved from performing his duties
• Sleeping time if it is subject to serious interruption or
takes place under conditions substantially less desirable
than would be likely to exist at the employee’s home
• Being “on call” where employee is required to remain on
call on the employer’s premises or so close thereto that
he cannot use the time effectively for his own purposes
• When employee receives an emergency call outside of
his regular working hours and is required to travel to his
regular place of business or some other work site
(“abnormal” home-to-work travel)
• Travel that is all in the day’s work
• Travel away from home
• Attendance at lectures, meetings, training programs
provided the following criteria are not met: 1) attendance
is outside of employee’s regular working hours, 2)
voluntary 3) the employee does not perform any
productive work during such attendance
• Grievance meeting during the time the employees
are required by the employees to be on the premises
• Semestral break for regular full-time monthly-paid
teachers in a private school
• Work hours for seamen for work in actual service
beyond eight hours
• Lunch periods spent predominantly for the
employer’s benefit and cannot be utilized in the
employee’s own interests
• Meal time breaks between continuous work shifts
• Shortened meal time when employee cannot eat
because he is still working
• Meal time of less than 20 minutes
The following are unworked hence not compensable:
• Waiting time spent by an employee if waiting is not
considered an integral part of his work (waiting to be
engaged)
• Meal time if employee is completely freed from
duties during his meal period even though he remains
in the workplace
• Sleeping time if there is an opportunity for
comparatively uninterrupted sleep under fairly desirable
conditions, even if the employee is required to remain
on or near the employer’s premises and must hold
himself in readiness for a call to action employment
L A B O R S T A N D A R D S b y A Z U C E N A
• Where work is not continuous, when the laborer can
leave his work and rest completely
• Normal travel from home to work
• Attendance at lectures, meetings, training programs if
attendance is outside of employee’s regular working
hours, voluntary and the employee does not perform any
productive work during such attendance
• When seaman ceases to work even while on board the
ship
• Shortened meal break upon employees’ request so
that they can leave work earlier than the previously
established schedule
Lunch breaks are not compensable except in cases where
the lunch period or meal time is predominantly spent for
the employer’s benefit and cannot be utilized in the
employer’s own interests, or where it is less than 60
minutes, or where work is continuous for several shifts
(for purposes of overtime compensation)
5. Is rendition of overtime work an obligation?
No. Overtime work is voluntary. Except:
(Art. 89) Any EE may be required by the ER to perform
overtime work in any of the following cases:
a) 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;
b) 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;
c) 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;
d) When the work is necessary to prevent loss or damage
to perishable goods; and
e) 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.
The Rules Implementing the Labor Code also authorizes
compulsory overtime work when it is necessary “to avail
of favorable weather or environmental conditions
where performance or quality of work is dependent
thereon.” (Sec. 10, Rule I, Book III, Rules Implementing
the Labor Code)
The employer should thus pay his workers who render
overtime work the appropriate additional overtime
compensation for such work.
P a g e 8 | 20

Chapter II – Weekly Rest Periods
Box 9
1. When is an employee's rest day?
Every employee regardless of the nature of his work is
entitled to a rest period of not less than 24 consecutive
hours after every 6 consecutive normal work days. If
business is open on Sundays/holidays, rest day may be
scheduled on another day. Preference of employee as to his
rest day should be respected if based on religious grounds.
Waiver of compensation for work on rest days and holidays is
not valid.
2. May an employer require work on rest day? On non-
working day?
(Art. 92) The employer may require his employees to work on
any day:
(a) 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;
(b) In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which the
employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be
expected to resort to other measures;
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires continuous
operations and the stoppage of work may result in irreparable
injury or loss to the employer; and
(f) Under other circumstances analogous or similar to the
foregoing as determined by the Secretary of Labor.
Chapter III – Holidays, Service Incentive Leaves and
Service Charges
Box 10
1. What is holiday pay and who are the employees
entitled to it?
Holiday pay is a one–day pay given by law to an employee
even if he does not work on a regular holiday. It is limited
L A B O R S T A N D A R D S b y A Z U C E N A
to the twelve (12) regular, also called legal holidays listed
by law.
The purpose of holiday pay is to prevent diminution of the
monthly income of the workers on account of work
interruptions declared by the State.
As a general rule, all employees in all establishments
whether for profit or not are entitled to a holiday pay,
provided that, he should not have been absent without
pay on the working day preceding the regular holiday.
Exception, holiday pay does not apply to:
1. Government employees;
2. Managerial employees including members of
managerial staff;
3. Field personnel;
4. Members of the family of the employer who are
dependent on him for support; and
5. Employees of retail & services establishments
regularly employing less than ten (10) workers.
2. What is service incentive leave? Is a part-time
worker entitled to S.I.L to the same extent as a
full-timer?
SIL refers to the to the 5 days leave with pay for every
employee who has rendered at least one year of service.
The Implementing Rules and Regulations of the Labor
Code, as amended, provides that every employee who has
rendered at least one year of service shall be entitled to a
yearly SIL of five days with pay. Thus, a part time worker
is entitled to SIL whether the service within 12 months is
continuous or broken or where the working days in the
employment contract as a matter of practice or policy is
less than 12 months. The commutation shall be
proportionate to the daily work rendered and the regular
salary.
3. Aside from S.I.L, what other kinds of leave are
granted by law?
The other kinds of leave that are granted by law are the
following:
1. Sick leave and vacation leave;
2. R.A No. 8187 – Paternity and Maternity Leave;
3. R.A No. 8972 – Solo parent Leave;
4. R.A No. 9262 – Battered Woman Leave; and
5. 60-day special leave under the Magna Carta for
Women
Title II – Wages
P a g e 9 | 20
 Chapter I – Preliminary Matters
Box 11
1. What is wage? What does it include?
Wage is the remuneration or earnings, however
designated, capable of being expressed in terms of
money, whether fixed or ascertained on a time, piece,
or commission basis or other method of calculating the
same, which is payable by an employer to an employee
under a written or unwritten contract of employment
for done or to be done or for services rendered or to
be rendered and includes the fair and reasonable
value, as determined by the Secretary of Labor, of
board, lodging, or other facilities customarily
furnished by the employer to the employee.
Wage includes sales commission, facilities (articles or
services for the benefit of the employee or his family),
and commodities (employer may provide them but he
may deduct their values from the employee’s wages).
To determine whether one’s wage meets the legal
minimum, should non-cash benefits included in
the computation?
Non-cash benefits may be included in the
determination of compliance with the legal minimum
wage when such are capable of being expressed in
money terms, provided that such non-cash benefits
are paid by an employer to an employee for work done
or services rendered. In such case, the “fair reasonable
value” shall be the basis for its amount to be included
in the wage computation.
2. “Facilities” are wage-deductible, “Supplements”
are not. How are they differentiated?
Supplements constitute extra remuneration or
special privileges or benefits given to or received
by the laborers over and above their ordinary
earnings or wages. Facilities are items of expense
necessary for the laborer and his family’s existence
and subsistence so that by express provision of law,
they form part of the wage and when furnished by the
employer are deductible therefrom. (Atok-Big Wedge
Assn. vs. Atok Big Wedge Co.) The term facilities shall
include articles or services for the benefit of the
employee or his family but shall not include tools of
the trade or articles or service primarily for the benefit
of the employer or necessary to the conduct of the
employer’s business.
L A B O R S T A N D A R D S b y A Z U C E N A
In short, “supplement” is the benefit or privilege given
to the employee, which constitutes an extra
remuneration over and above his basic or ordinary
earning or wage. When benefit or privilege is part of
the laborers basic wages, it is a “facility”. The criterion
lies not so much on the kind of the benefit or item
given, but its purpose.
3. What establishments may be exempted from
observance of the minimum wage law?
1. Farm tenancy or leasehold;
2. Household or domestic helpers;
3. Homeworkers engaged in needle-work;
4. Workers employed in any establishment duly
registered with the National Cottage Industry
Development Authority (NACIDA);
5. Workers in duly registered cooperatives when so
recommended upon approval by the Secretary of
Labor;
6. Workers of a Barangay Micro Business enterprise
Chapter II – Minimum Wage Rates
Box 12
1. Minimum wage rates are regionalized, i.e., they vary
among the regions. How is this justified?
The minimum wage rates were regionalized based on the
following applicable laws:
a. Art. 99 of the Labor Code provides that “the
minimum wage rates for agricultural and non
agricultural employees and workers in each and every
region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards.”
b. By virtue of RA 6727 (Wage Rationalization Act), the
regional wage boards or RTWPBs have issued wage
orders fixing the minimum wages for their respective
regions.
2. What is the rule on nondiminution of benefits?
The rule on non-diminution of benefits is simply the
prohibition against elimination or diminution of
employee benefits under Article 100 of the Labor Code. So
that the rule against diminution of supplements or
benefits may apply, it must be shown that:
a. The grant of the benefit is founded on a policy or has
ripened into a practice over a long period;
b. The practice is consistent and deliberate;
P a g e 10 | 20
 c. The practice is not due to error in the construction
or application of a doubtful or difficult question of law;
and
d. The diminution or discontinuance is done
unilaterally by the employer.
Does it apply to benefits negotiated through a collective
bargaining agreement (CBA) or to conditional benefits
such as bonus?
No. Benefits initiated through negotiation between
employer and employees, such as those contained in a
collective bargaining agreement, are not within the
4. Wages calculated according to work output,
prohibition of Article 100 because, as products of
bilateral contract, they can only be eliminated or
diminished bilaterally. What the law forbids is
elimination or modification done unilaterally by the
employer.
Neither does the rule under Art. 100 apply to a benefit
whose grant depends on the existence of certain
conditions, so that the benefit is not demandable if those
preconditions are absent. An example of this is the giving
5. What statutory benefits are piece-rate workers
of bonus which is not part of the employees’ regular
compensation. It is only an act of generosity.
In sum, jurisprudence recognizes exceptions to the
application of Article 100:
a. Correction of error;
b. Negotiated benefits;
c. Wage order compliance;
d. Benefits on reimbursement basis;
e. Reclassification of position;
f. Contingent benefits or conditional bonus; and
g. Productivity incentives.
3. What is the thirteenth-month pay and who are entitled
to it? On what basis is it computed?
13th month pay is an additional monetary benefit given
to an employee by creating an imaginary 13th month
and obliges employers to pay the employees for that
imaginary month. It is a statutory grant under P.D. No.
851. All rank-and-file employees, regardless of salary
rate, shall be entitled to 13th month pay.
Under the implementing rules of P.D.851, the basis of
computation of 13th-month pay shall be the one-
twelfth (1/12) of the basic salary of an employee
within a calendar year.
Are commissions part of the pay?
The inclusion of commissions depends on their nature.
If they may be considered part of the basic salary, they
should be included in the computation. If they are not
L A B O R S T A N D A R D S b y A Z U C E N A
an integral part of the basic salary, the should be
excluded. In the case of Philippine Duplicators vs.
NLRC, the Court ruled, essentially, that commissions
are included or excluded, depending on what kind of
commissions are involved. If the commissions may
properly be considered part of the basic salary, they
should be included in computing the 13th month pay
(i.e. wage-or sales-percentage type). If the
commissions are not integral part of the basic salary,
then they should be excluded (i.e. profit-sharing or
bonus type).
instead of time spent, is lawful. On what
conditions?
This is the so-called Payment by Results under Article
101 of the Labor Code. Under the law, the wage rates
paid to workers paid by results, including pakyao,
piecework and other noontime work must be fair and
reasonable.
entitled to?
On the basis of existing labor regulations and more
recent jurisprudence, piece rate workers are entitled
to the benefits, as follows:
a. The applicable statutory minimum daily rate;
b. Yearly service incentive leave of 5 days with pay;
c. Night shift differential pay;
d. Holiday pay;
e. Meal and rest periods;
f. Overtime pay (conditional)
g. Premium pay (conditional)
h. 13th-month pay
Other benefits granted by law, by individual or
collective agreement
Chapter III – Payment of Wages
Box 13
1. Is it lawful to pay the wages only once a month?
May the wages be paid in form of goods such as
phone cards?
Art. 103: Wages shall be made at least once every two (2)
weeks or twice a month at intervals not exceeding sixteen
(16) days. If on account of force majeure or circumstances
beyond the employer’s control, payment of wages on or
within the time herein provided cannot be made, the
P a g e 11 | 20
employer shall pay the wages immediately after such
force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a
month.
No employer shall pay the wages of an employee by
means of promissory notes, vouchers, coupons, tokens,
tickets, chits or any object other than legal tender, even
when expressly requested by the employee.
2. What is independent contracting in contrast to
labor-only contracting? What does the latter
consist of and why does the law prohibit it?
Independent contracting is an arrangement whereby a
principal agrees to put out or farm out with a contractor
or subcontractor the performance or completion of a
specific job work or service within a definite or
predetermined period, regardless of whether such job,
work or service to be performed or completed within or
outside the premises of the principal as hereinafter
qualified. Contracting, as the, definition shows, refers to
the completion or performance of a job, work, or service
within a given period.
Labor-only contracting, on the other hand, is not really
contracting because the arrangement is merely to recruit
or place people to be employed, supervised and paid by
another, who, therefor, is the employer. The commitment
of the so-called “contractor” is not to do and deliver a job,
work or service but merely to find and supply people. The
“contractor” is a pseudo-contractor; in fact, he himself
might even be an employee of the employer. Thus, “labor-
only contracting” is self-contradictory because there is no
contactor and no contracting in L.o.C. It is prohibited
because it is an attempt to evade the obligations of an
employer.
Section 5 of D.O. No. 18-02 - Prohibition against labor-
only contracting – Labor-only contracting is hereby
declared prohibited. For this purpose, labor-only
contracting shall refer to an arrangement where the
contractor or subcontractor merely recruits, supplies or
place workers to perform a job, work or service for
principal, and any of the following elements are present:
(i) The contractor or subcontractor does not have
substantial capital or investment which relates
to the job, work, or service to be performed and
the employees recruited, supplied or place by
such contractor or subcontractor are performing
activities which are directly related to the main
business of the principal; or
L A B O R S T A N D A R D S b y A Z U C E N A
(ii) The contractor does not exercise the right to
control over the performance of the work of the
contractual employee.
3. Other than labor-only contracting, what forms or
acts of labor contracting are disallowed?
Notwithstanding Section 5 of these Rules the following
are hereby declared prohibited for being contrary to law
or public policy.
(a) Contracting that terminates the employment
of regular employees, or reduce their work
hours, or reduces or splits a bargaining unit, if
such contracting out is not done in good faith
and not justified by business exigencies.
(b) Contracting with “cabo”
(c) Contracting with in-house agency
(d) Contracting because of a strike or lockout.
(e) Contracting that constitutes unfair labor
practice (ULP) under Article 248.
4. May an indirect employer be held liable
answerable for an illegal dismissal done by the
direct employer?
Every employer or indirect employer shall be held
responsible with his contractor or subcontractor for
any violation of any provision of this Code. For
purposes of determining the extent of their civil
liability under this Chapter, they shall be considered
as direct employers.
The Court has interpreted the liability of the indirect
employer as a qualified or limited liability. This
means that if the liability if for failure to pay
minimum wage or service incentive leave or other
benefits derived from or provided by law, the indirect
employer is equally liable with the contractor as if the
former were the direct employer. But if the liability is
invested with punitive character, such as an award
for backwages and separation pay due to illegal
dismissal of the contractor’s employee, the liability
should be solely that of the contractor in the absence
of proof that the indirect employer conspired with
the contractor in the commission of the illegal
dismissal.
Chapter IV – Prohibition Regarding Wages
Box 14
1. What wage deductions are legally allowed?
P a g e 12 | 20
 Art. 113. No employer, in his own behalf or in behalf
of any person, shall make any deduction from the
wages of his employees, except:
(a) In cases where the worker is insured with his
consent by the employer, and the deduction is to
recompense the employer for the amount paid by
him as premium on the insurance;
(b) For union dues, in cases where the right of the
worker or his union to check-off has been
recognized by the employer or authorized in
writing by the individual worker concerned;
(c) In cases where the employer is authorized by law
or regulations issued by the Secretary of Labor.
Deductions authorized by law:
a. Deduction for value of meals and other facilities.
b. In cases where the employee is insured with his
consent by the employer, deductions for the
amount paid by said employer, as premiums on
the insurance.
c. In cases where the right of the employees or his
union to checkoff has been recognized by the
employer or authorized in writing by the
individual employee concerned.
d. In cases where the employee is indebted to the
employer, where such indebtedness has become
due and demandable.
e. In court awards, wages may be the subject of
execution or attachment, but only for debts
incurred for food, shelter, clothing and medical
attendance.
f. Withholding tax
g. Salary deductions of a member of a legally
established cooperative
h. SSS, Medicare and Pag-ibig contributions
Under implementing rules, employees’ payment of
obligations to a third person may also be deducted
provided that this was authorized by the employee in
writing. Deductions for absences and for reduced
worked days are also allowed
2. May an employer deduct from the employee’s salary
the cost of company property lost or damaged by the
employee?
According to the implementing rules, payments for
lost or damaged equipment is deductible from the
employee’s salary if the ff. conditions are met:
a. The employee is clearly shown to be responsible
for the loss or damage;
L A B O R S T A N D A R D S b y A Z U C E N A
b. The employee is given ample opportunity to
show cause why deduction should not be made;
c. The amount of the deduction is fair and
reasonable and shall not exceed the actual loss or
damage;
d. The deduction from the employee’s wage does
not exceed 20 percent of the employee’s wages in
a week.
3. May labor standards violation justify a strike?
A wage violation is unlawful and may be pursued in a
money claim, not through a strike. But a strikeable
situation may arise when the employer retaliates
against the complaining employee, and the
retaliation is of the kind considered as ULP under Art.
248(f). Violation of labor standards, therefore, may
ultimately cause or justify a strike if Article 248 (f) or
Article 261 (gross violation of the CBA) is applicable.
Chapter V – Wage Studies, Wage Agreements, and Wage
Determination
Box 15
1. What is the NWPC? The RTWPB? What are their
respective authorities as regards wage
determination?
NWPC (National Wages and Productivity
Commission) prescribes rules and guidelines for
determination of appropriate minimum wage and
productivity measures at the regional, provincial or
industry levels. Further the NWPC may review the
wage levels set by the RTWPB. But a wage-fixing
order by RTWPB does not need prior approval by the
NWPC.
RTWPB (Regional Tripartite Wages and Productivity
Boards) are empowered ‘to determine and fix
minimum wage rates applicable in their regions’ and
to issue the corresponding wage orders, subject to
guidelines’ issued by the NWPC. But the guidelines,
like the Labor Code, do not require NWPC’s approval
of a wage order. What it requires is for the board to
conduct a public hearing over a petition for a wage
order, to decide such petition within 30 days after the
last hearing, and to “furnish the Commission a copy
of the decision on the petition or the wage order.”
Furnishing the NWPC a copy of the Wage Order does
not mean seeking the Commission’s approval.
P a g e 13 | 20
2. What factors or criteria are considered in
determining a region’s minimum wage standard?
Art. 124. Standards/Criteria for minimum wage fixing. –
The regional minimum wages to be established by
the Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum
standards of living necessary for the health, efficiency
and general well-being of the employees within the
framework of the national economic and social
development program. In the determination of such
regional minimum wages, the Regional Board shall,
among other relevant factors, consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis–vis the consumer price
index;
(c) The cost of living and changes or increases
therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the
countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to
pay of employers;
(i) Effects on employment generation and family
income; and
(j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
The wages prescribed in accordance with the
provisions of this Title shall be the standard
prevailing minimum wages in every region. These
wages shall include wages varying with industries,
provinces or localities if in the judgment of the
Regional Board, conditions make such local
differentiation proper and necessary to effectuate the
purpose of this Title.
3. What obligations, if any, does an employer have when
salaries are distorted by compliance with a wage
order?
Where the application of any prescribed wage
increase by virtue of a law or wage order issued by
any Regional Board results in distortions of the wage
structure within an establishment, the employer and
the union shall negotiate to correct the distortions.
Any dispute arising from wage distortions shall be
resolved through the grievance procedure under
their collective bargaining agreement and, if it
remains unresolved, through voluntary arbitration.
Unless otherwise agreed by the parties in writing,
such dispute shall be decided by the voluntary
arbitrators within ten (10) calendar days from the
L A B O R S T A N D A R D S b y A Z U C E N A
time said dispute was referred to voluntary
arbitration.
In cases where there are no collective agreements or
recognized labor unions, the employers and workers
shall endeavor to correct such distortions. Any
dispute arising therefrom shall be settled through the
National Conciliation and Mediation Board and, if it
remains unresolved after ten (10) calendar days of
conciliation, shall be referred to the appropriate
branch of the National Labor Relations Commission
(NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute
within twenty (20) calendar days from the time said
dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to
the provisions of law or wage order.
Chapter VI – Administration and Enforcement
Box 16
1. Labor laws are enforced and administered largely
through DOLE's regional offices. How is this
administrative authority exercised?
To carry out these responsibilities, the DOLE is authorized to
operate and maintain regional offices (including district
offices and provincial extension units) in each of the country's
administrative regions. These offices serve as the operational
arms—the front line action offices—of the DOLE. This role is
described in Arts. 128 and 129.
At the regional level, 5 regional offices enforce the labor laws,
namely:
1. The DOLE regional office, headed by a regional director,
including 5 divisions, namely: administrative division, labor
standards enforcement division, industrial relations
division, workers amelioration and welfare division,
employment promotion division
2. TESDA (Technical Education and Skills Dev’t Authority)
3. RAB (Regional Arbitration Branch) of the NLRC which
handles compulsory arbitration cases affecting labor and
management, aside from enforcing decisions, awards or
orders of the NLRC.
4. NCMB (national and conciliation mediation board) which
has absorbed the conciliation, mediation and voluntary
arbitration functions of the Bureau of Labor Relations
5. RTWPB (Regional Tripartite Wage and Productivity
Board) which determines the minimum wages applicable in
a region and issues wage orders, subject to guidelines from
P a g e 14 | 20
NWPC.
In addition, special labor-related laws are administered or
enforced by the concerned agencies such as the SSS, GSIS, or
PhilHealth regional offices.
2. Some labor disputes are likewise adjudicated at the
regional level. What are the limits to such adjudicatory
function?
Under the provisions of Art 129, the Regional Director is
empowered through summary proceedings and after due
notice, to hear and decide cases involving recovery of wages
and other monetary claims and benefits, including legal
interests, provided the following requisites are present:
a) the claim is presented by an employee, or a person
employed in domestic or household service, or househelper;
b) the claim arises from employer-employee relations;
c) the claimant does not seek reinstatement; and
d) the aggregate money claim of each claimant does not
exceed P5,000.
If employer-employee stills exist regional director has power
to order and administer, after due notice and hearing,
compliance with labor standards provision of the labor code/
other laws.
DOLE regional director must endorse the case to Labor
Arbiter where employer contests finding of labor standards
and welfare officers and raises issues which cannot be
resolved without considering the evidentiary matters that
are not verifiable in the normal course of inspection.
Regional director is with authority to declare an order or law
unconstitutional; only duty is to enforce the laws, which
stands valid.
3. Administrative orders or adjudications are appealable.
To whom? When?
Art. 129: 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.
Title III – Working Conditions for Special Groups of
Employees
Chapter 1 – Employment of Women
Box 17
1. Women, as a rule, are not allowed to engage in
nightwork. What are the exceptions?
L A B O R S T A N D A R D S b y A Z U C E N A
Art. 131. Exceptions. The prohibitions prescribed by the
preceding Article shall not apply in any of the following cases:
1. In cases of actual or impending emergencies caused
by serious accident, fire, flood, typhoon, earthquake,
epidemic or other disasters or calamity, to prevent
loss of life or property, or in cases of force majeure or
imminent danger to public safety;
2. In case of urgent work to be performed on
machineries, equipment or installation, to avoid
serious loss which the employer would otherwise
suffer;
3. Where the work is necessary to prevent serious loss
of perishable goods;
4. Where the woman employee holds a responsible
position of managerial or technical nature, or where
the woman employee has been engaged to provide
health and welfare services;
5. Where the nature of the work requires the manual
skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male
workers;
6. Where the women employees are immediate
members of the family operating the establishment
or undertaking; and
7. Under other analogous cases exempted by the
Secretary of Labor and Employment in appropriate
regulations.
2. Sex discrimination at work is basically wrongful.
What acts are considered discriminatory against
women employees?
Art. 135. Discrimination prohibited. It shall be
unlawful for any employer:
1. To deny any woman employee the benefits provided
by the law on employment of women or to discharge any
woman employed by him for the purpose of preventing
her from enjoying any of the benefits provided in the
Labor Code;
2. To discharge such woman on account of her
pregnancy, or while on leave or in confinement on
account of her pregnancy; or
3. To discharge or refuse the admission of such woman
upon returning to her work for fear that she may
again be pregnant.
The following are acts of discrimination:
1. Payment of a lesser compensation, including wage,
salary or other form of remuneration and fringe
benefits, to a female employees as against a male
employee, for work of equal value; and
2. Favoring a male employee over a female employee
with respect to promotion, training opportunities,
study and scholarship grants solely on account of
their sexes.
P a g e 15 | 20
 Chapter II – Employment of Minors
Box 18
1. Childwork is wrongful and generally illegal. Before a
child may be put to work, what are the legal
requirements?
- It must be a nonhazardous work- the child is not
exposed to any risk which constitutes an imminent
danger to his safety and health.
- The child shall work only for such # of hours and
period of days as determined by the Secretary of
Labor.
- For below 15yrs. old:
 Must work directly under the sole responsibility
of the parents/legal guardian and where only
members of his family are employed;
 It does not endanger child’s life, safety, health nor
impair normal development;
 The parent/legal guardian shall provide for the
child’s primary and/or secondary education.
 If employed in any form of media – Child’s
participation must be essential;
 Employment contract is concluded by the child’s
parent or legal guardian with express agreement
of the child concerned, if possible, and the
approval of the DOLE;
 The ff. are strictly complied with:
a. ER shall ensure the protection, health, safety,
morals and normal development of the child
b. ER shall institute measures to prevent
exploitation or discrimination of the child
(remuneration, working time)
c. ER shall formulate and implement continuing
program for training and skill acquisitions of
the child.
2. What are the employable ages?
 Between 15 and 18 for non-hazardous work
 18 and above for any hazardous work
 Below 15yrs old
o General Rule: not allowed to work. Exceptions:
(RA 9231)
1. When a child works directly under the sole
responsibility of the parents and where only
members of his family are employed;
2. child star
Chapter III – Employment of Househelpers
Box 19
L A B O R S T A N D A R D S b y A Z U C E N A
1. What statutory employment benefits do
househelpers have? RA 10361 -Kasambahay Law
a. Standard treatment – any kind of abuse or any
form of physical violence or harassment or any
act tending to degrade the dignity of a domestic
worker is not allowed.
b. Free board, lodging and medical attendance
c. Guarantee of privacy- extends to all forms of
communication and personal effects.
d. Access to outside communication-during free
time. In case of emergency, access to outside
communication shall be at all times.
e. Right to education and training- primary
education; ALS; and higher education, technical
and vocational training, if practicable.
f. Health and safety
g. Daily rest period-8hrs/day
h. Weekly rest period-24hrs
i. Minimum wage-
i. P2,500/month for those employed in NCR;
ii. P2,000/month for those employed in
chartered cities and first class
municipalities; and
iii. P1,500/month for those employed in other
municipalities.
j. Leave benefits- 5 days with pay for those who
have rendered at least 1yr of service.
k. Social and other benefits-must have rendered at
least one month of service
i. SSS
ii. PhilHealth
iii. Pag-ibig
2. When a househelper’s employment is
terminated, is he entitled to separation pay?
 There is no provision of separation pay under the
Kasambahay Law. But it provides that if the
domestic worker is unjustly dismissed, the
domestic helper shall be paid the compensation
already earned plus the equivalent of 15 days
work by way of indemnity. (Sec 32)
3. Does the SSS law apply to househelpers?
 Yes. A domestic worker who has rendered at
least one month of service shall be covered by the
Social Security System and entitled to all the
benefits in accordance with the pertinent
provisions of the SSS law. (Sec 30, RA 10361 -
Kasambahay Law)
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 Chapter IV – Employment of Homeworkers payment of compression is payment of compensation is
made by employer made by the sss/gsis through
Box 20 state insurance fund.
Employer obligation is to pay
counter contribution
1. Are homeworkers entitled to the right to self- litigation, quasi judicial judicial administrative
organize? Are they SSS covered?

Yes, in the new rule, it authorizes the formation and 2. Under what circumstances is an injury considered
registration of labor organization of industrial work connected and therefore compensable?
homeworkers. It also makes explicit the employers
Conditions:
duty to pay and remit SSS, medicare and ECC
Premiums. 1. The employee must have been injured at the place
where the work required him to be
2. Who is their employer?
2. The employee must have been performing his official
Art. 155 provides that the “employer” of functions
homeworkers includes any person, natural or
artificial, who for his account or benefit or on behalf 3. If the injury is sustained elsewhere, the employee must
of any person residing outside the country, directly have been executing an order of the employer
or indirectly or through any employee, agent,
4. The injury was not due to the employee’s intoxication,
contractor, subcontractor or any other person.
willful intention to injure or kill himself or another,
or notorious negligence Injuries incurred by a health
worker while doing overtime work shall be
Title II – Employees’ Compensation and State Insurance
considered work-connected.
Fund
3. What kind of disease are compensable?
Chapter I – Policy and Definitions
Occupational disease listed by the commission otherwise,
Box 21
proof must be shown that the risk of contracting the
1. What are the significant changes introduce by labor disease is increased by the working conditions.
code to the law that awards compensation benefits to
4. Explain the theory of increased risk?
employees who sustain work connected injury?
If an ailment is not included in the list of occupational
Where an ailment supervened before the new labor code, the
disease as drawn up by the commission, the claimant has
governing law is the Workmen Compensation Act. Thus, the
the burden of proving that the nature of the work
changes are as follows:
increased the risked of contacting the disease. The
Workmen’s Compensation Act. Employees Compensation claimant must show proof of reasonable work
Act 3428 Law PD442 amended by connection, not necessarily direct causal relation.
PD626 (labor code)
there is presumption of no presumption of 5. What is the dual purpose doctrine?
compensability compensability
no need to present proof of causation proof of causation An employee’s status of acting in the course of his
causation is needed of diseases is not
listed employment is not negated by the fact that He may be
employer has burden of proof Claimant pursuing a dual purpose.
there is presumption of aggravation no presumption
aggravation Considers as compensable an injury that an employee
if he so desires, employer had to employer is not allowed sustains while on a trip undertaken for the benefit of
controvert the claim within 14 much less required to
days from date of disability or intervene in the process of employer even if in the course thereof the employee
10 days from the knowledge, the compensation claim pursues also a personal purpose.
otherwise it is deemed waived

L A B O R S T A N D A R D S b y A Z U C E N A P a g e 17 | 20
6. If the cause of disease is unknown, for example, a. Dependents pension
cancer, must the claimant prove that it is work related b. Retirement benefits
so as to obtain benefits under SIF? 2. Death Benefits & Permanent Disability Benefits;
3. Funeral Benefits;
Yes. Proof is required. 4. Sickness Benefits; and
5. Maternity Leave Benefits
As a general rule, cancer is a disease still unknown origin
which strikes people in all walks of life. Unless it be shown NOTE: Simultaneous recovery of benefits under
that a particular form of cancer is caused by specific Employees’ Compensation Program of the Labor Code &
working conditions or environment, one cannot conclude under the Social Security Law is allowed.
that it was the employment which increased the risk of
contracting the disease. Chapter III – Administration

Box 23
Chapter II – Coverage and Liability

Box 22 1. Who administers the State Insurance Fund? What is

the role of the SSS?
1. Who are the employees & employers compulsorily
covered by the employees’ compensation program? It is administered by the government and attached to the
Department of Labor for policy coordination and
The employees’ compensation law applies to all guidance. Its chairman is the Secretary of Labor and
employers, public or private, & to all employees, public or Employment.
private, including casual, emergency, temporary or The SSS is the collecting agent of the employees in the
substitute employees. private sector of the State Insurance Fund.

2. What is notorious negligence that can cause denial of

2. Does the EC Commission decide on compensation
compensation claim?
claims? Are their decisions appealable?

Notorious negligence is something more than simple or

Yes, the EC is the policy-making body of the Employees
contributory negligence. It signifies a deliberate act of the
Compensation Program and also the appeal body.
employee to disregard his own personal safety.
The decisions of either SSS or GSIS, if unfavorable to the
Disobedience to the rules and/or prohibition does not in
claimant are appealable to the ECC. Upon appeal, the
itself constitute notorious negligence, id no intention can
system elevates the record of the case to the ECC for
be attributed to the injured to end his life.
review.

3. What benefits are claimable under the EC program &

Chapter IV – Contributions
under the SS law because of an injury or disease?
Box 24
Benefits claimable under the EC Program are the
following: 1. Is it the employers or the consumers that
1. Services shoulder the contributions to the State Insurance
a. Medical services, appliances & supplies; and Fund (SIF)?
b. Rehabilitation services
2. Cash Income Benefits or Pension due to: Employers. Under the law, contributions shall be paid in
a. Temporary total disability; their entirety by the employer and any contract or device
b. Permanent total disability; for the deduction of any portion thereof from the wages
c. Permanent partial disability; and or salaries of the employees shall be null and void.
d. Death
3. Funeral Benefits Chapter V – Medical Benefits

Benefits claimable under the SS Law are the following: Box 25

1. Monthly Pension;
L A B O R S T A N D A R D S b y A Z U C E N A P a g e 18 | 20
 1. What are the benefits recoverable under the EC
Program?
The benefits or “compensation” extended to the
employee (or to beneficiaries) are of three kinds:
services, income benefit, and funeral benefit.
A. Services
(1) Medical services, appliances and supplies;
(2) Rehabilitation services;
B. Cash Income Benefit or Pension due to:
(1) Temporary total disability;
(2) Permanent total disability;
(3) Permanent partial disability;
(4) Death.
C. Funeral benefit.
2. Are medical benefits payable even after one’s
retirement?
Yes. In the case of Itogon Suyoc Mines Inc. vs. Dulay,
et al, medical attendance is owing as long as the
employee is sick of a compensable illness, and this
duty is not ended when employment terminates.
Chapter VI – Disability Benefits
Box 26
1. What are the kinds of disability benefits under the EC
program?
a. Income benefit
i. For temporary total disability
ii. Equivalent to 90% of his average daily salary
credit
iii. Shall be paid to the EE from day 1 of his
disability until the 120th day
b. Full monthly income benefit
i. for permanent total disability
ii. guaranteed for 5yrs
c. Permanent partial disability benefit
i. for Permanent partial disability
ii. same amount with permanent total
iii. monthly/lump sum
2. When is a disability considered permanent-total?
 If the EE is unable to perform any gainful occupation
for a continuous period exceeding 120 days.
 An incapacity to perform gainful work which is
expected to be permanent. But does not require a
condition of complete helplessness. Nor is it affected
by the performance of occasional odd jobs (Abaya v.
ECC)
L A B O R S T A N D A R D S b y A Z U C E N A
a. Temporary total disability lasting continuously
for more than 120 days, except as otherwise
provided;
b. Complete loss of sight of both eyes;
c. Loss of two limbs at or above the ankle or wrist;
d. Permanent complete paralysis of two limbs;
e. Brain injury resulting in incurable imbecility and
insanity; and
f. Such cases as determined by the System and
approved by the commission.
Chapter VII – Death Benefits
Box 27
1. In case an SIF covered employee dies, how are the
beneficiaries of the death benefits
As provided by law, Art 194(a) Under such regulations as
the Commission may approve, the System shall pay to the
primary beneficiaries upon the death of the covered
employee under this Title, an amount equivalent to his
monthly income benefit, plus ten percent thereof for each
dependent child, but not exceeding five, beginning with
the youngest and without substitution, except as
provided for in paragraph (j) of Article 167 hereof:
Provided, however, That the monthly income benefit shall
be guaranteed for five years: Provided, further, That if he
has no primary beneficiary, the System shall pay to his
secondary beneficiaries the monthly income benefit but
not to exceed sixty months: Provided, finally, That the
minimum death benefit shall not be less than fifteen
thousand pesos.
2. If there are competing claimants who resolves the
disputes?
a. If there competing claimants the ECC is
empowered by law to resolve disputes in
compensation claims.
Chapter VIII – Provisions Common to Income Benefits
Box 28
1. What are the liabilities of an employer who is
delinquent in his contributions to the SIF?
An employer who is delinquent in his contributions shall
be liable to the System for the benefits which may have
been paid by the System to his employees or their
dependents, and any benefit and expenses to which such
employer is liable shall constitute a lien on all his
P a g e 19 | 20
 property, real or personal, which is hereby declared to be
preferred to any credit, except taxes. The payment by the
employer of the lump sum equivalent of such liability
shall absolve him from the payment of the delinquent
contribution and penalty thereon with respect to the
employee concerned.
2. What is the prescriptive period of EC claims?
As provided by law, No claim for compensation shall be
given due course unless said claim is filed with the System
within three (3) years from the time the cause of action
accrued. (As amended by Section 5, Presidential Decree
No. 1921). Art 201
Chapter IX – Records, Reports and Penal Provisions
Box 29
1. What steps need to be observed in filing and pursuing
an EC claim?
b. When the employee officially files an application for
leave of absence by reason of the contingency from
which he suffers;
c. When the employer provides medical services
and/or medical supplies to the employee who suffers
from the contingency; and
d. When the employer can be reasonably presumed to
have knowledge of the employee’s contingency, in
view of the ff. circumstances:
1. The employee was performing an official
function for the employer when the contingency
occurred;
2. The employee’s contingency has been publicized
through mass media outlets; or
3. The specific circumstances of the occurrence of
the contingency have been such that the
employer can be reasonably presumed to have
readily known it soon thereafter; and
4. Any other circumstances that may give rise to a
reasonable presumption that the employer has
been aware of the contingency.

Under Art. 206 of the present law on Employees’

Compensation, it is required that the employee, his
dependents or anybody on his behalf, should give the
notice of sickness, injury or death to the employer within
five (5) days from the occurrence of the contingency. The
purpose is not only to establish the employee’s right to
compensation, as no claim for compensation shall be
given the employer, but also to enable the employer to
comply with its duty under the Rules – that of entering the
contingency in the logbook and of giving also due notice
to the System if the injury, sickness or death is deemed
work-connected.

The same article provides, however, that notice need not

be given if the employer or his agent or representative is
aware of the contingency that gives rise to the claim for
compensation.

2. Under what circumstances may the notice to the

employer be dispensed with?

Under ECC Resolution No. 2127, notice of injury, sickness

or death of the employee need not be given to the
employer in any of the following situations:

a. When the employee suffers the contingency within

the employer’s premises;

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