Professional Documents
Culture Documents
DAWAY 1
LAW 113
LABOR STANDARDS LAW
PROF. PATRICIA R.P. SALVADOR DAWAY
All provisions in the boxes are from the NEW Labor Code unless otherwise indicated.
HELD:
Art. XIII, Sec. 2, CON87 The promotion of social justice shall
include the commitment to create economic opportunities
based on freedom of initiative and self-reliance.
c.2. Foundation or basis: Police Power of the State
Art. XIII, Sec. 3, CON87 The State shall afford full protection
St. Luke’s Med. Center Employee’s Association-AFW (SLMCEA-
to labor, local and overseas, organized and unorganized, and
AFW) and Maribel Santos v. NLRC
promote full employment and equality of employment
FACTS:
opportunities for all.
It shall guarantee the rights of all workers to self-organization,
ISSUE/S:
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
HELD:
They shall be entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as
c.3. Ultimate goal: Industrial Peace
may be provided by law.
Art. XIII, Sec. 3(3), CON87 The State shall promote the
The State shall promote the principle of shared responsibility
principle of shared responsibility between workers and
between workers and employers and the preferential use of
employers and the preferential use of voluntary modes in
voluntary modes in settling disputes, including conciliation, and
settling disputes, including conciliation, and shall enforce their
shall enforce their mutual compliance therewith to foster
mutual compliance therewith to foster industrial peace.
industrial peace.
Calalang v. Williams
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the FACTS:
fruits of production and the right of enterprises to reasonable
ISSUE/S:
returns to investments, and to expansion and growth.
HELD:
SOCIAL JUSTICE
- Promotion of welfare of all the people by government
adopting measures calculated to ensure economic stability
c.4. Management prerogative/state regulation
See also: Ma. Wenelita Tirazona v. Phil. EDS Techno-Service Inc. Art. XIII, Sec. 3(4), CON87 The State shall regulate the
FACTS: relations between workers and employers, recognizing the right
of labor to its just share in the fruits of production and the right
ISSUE/S: of enterprises to reasonable returns to investments, and to
expansion and growth.
HELD:
LIMITATIONS ON MANAGEMENT PREROGATIVE Art. XIII, Sec. 3(3), CON87 The State shall promote the
- Must be done humanely and considerately principle of shared responsibility between workers and
- Sanctions must be commensurate with the violations employers and the preferential use of voluntary modes in
- Must give due regard to a worker’s number of years in service settling disputes, including conciliation, and shall enforce their
as well as their record during such service mutual compliance therewith to foster industrial peace.
ISSUE/S:
HELD:
HELD:
HELD:
ISSUE/S:
HELD:
3. Classification
a. Labor Standards
c.4.2. Limitation on Management prerogative
b. Labor Relations
Nathaniel Dongon v. Rapid Movers and Forwarders Co., Inc.
FACTS:
c. Welfare Legislation
ISSUE/S:
HELD: 4. Basis
a. Economic Basis
c.5. Specific Rights of the Employer
b. Legal Basis
International School Manila v. ISAE x x x Evangeline Santos
FACTS: b. 1. 1987 Constitution: State Mandate to Afford Full Protection
to Labor/to Guarantee Workers’ Seven (7) Cardinal Rights
ISSUE/S:
Art. II, Sec. 5, CON87 The maintenance of peace and order,
Art. III, Sec. 4, CON87 No law shall be passed abridging the Art. XIII, Sec. 14, CON87 The State shall protect working
freedom of speech, of expression, or of the press, or the right of women by providing safe and healthful working conditions,
the people peaceably to assemble and petition the government taking into account their maternal functions, and such facilities
for redress of grievances. and opportunities that will enhance their welfare and enable
them to realize their full potential in the service of the nation.
Art. XIII, Sec. 3(2), CON87 It shall guarantee the rights of all
b. 1.1. Overarching Right to Human Dignity
workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the
Art. II, Sec. 11, CON87 The State values the dignity of every right to strike in accordance with law. They shall be entitled to
human person and guarantees full respect for human rights. security of tenure, humane conditions of work, and a living wage.
They shall also participate in policy and decision-making
Art. XIII, Sec. 1, CON87 The Congress shall give highest processes affecting their rights and benefits as may be provided
priority to the enactment of measures that protect and enhance by law.
the right of all the people to human dignity, reduce social,
economic, and political inequalities, and remove cultural International School Alliance of Educators v. Hon. Quisumbing
inequities by equitably diffusing wealth and political power for FACTS:
the common good.
ISSUE/S:
To this end, the State shall regulate the acquisition, ownership,
use, and disposition of property and its increments. HELD:
Art. XV, Sec. 3(3), CON87 The right of the family to a family Art. 1701, NCC Neither capital nor labor shall act oppressively
living wage and income against the other, or impair the interest or convenience of the
public.
b. 1.5. Right to participate in policy and decision-making
processes affecting their rights and benefits Art. 19, NCC Every person must, in the exercise of his rights
and in the performance of his duties, act with justice, give
Art. XIII, Sec. 3(2), CON87 It shall guarantee the rights of all everyone his due, and observe honesty and good faith.
workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the Art. 20, NCC Every person who, contrary to law, wilfully or
right to strike in accordance with law. They shall be entitled to negligently causes damage to another, shall indemnify the latter
security of tenure, humane conditions of work, and a living wage. for the same.
They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided Art. 21, NCC Any person who wilfully causes loss or injury to
by law. another in a manner that is contrary to morals, good customs or
public policy shall compensate the latter for the damage.
b. 1.6. Three Rights Pertaining to Labor Relations: (a) Rights to
Self-organization, (b) Collective Bargaining and Negotiations Innodata Philippines, Inc. v. Quejada-Lopez
and (c) Peaceful Concerted Activities Including the Right to FACTS:
Strike in Accordance with Law
ISSUE/S:
Art. XIII, Sec. 3(2), CON87 It shall guarantee the rights of all
workers to self-organization, collective bargaining and HELD:
negotiations, and peaceful concerted activities, including the
right to strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a living wage. b. 3. Labor Code (P.D. No. 442) and Omnibus Rules
They shall also participate in policy and decision-making Implementing the Labor Code
processes affecting their rights and benefits as may be provided
by law. b. 4. International Conventions, Recommendations
b. 2. Civil Code Art. II, Sec. 2, CON87 The Philippines renounces war as an
instrument of national policy, adopts the generally accepted
b. 2.1. Contract as the law between the parties/freedom of principles of international law as part of the law of the land and
contract adheres to the policy of peace, equality, justice, freedom,
cooperation, and amity with all nations.
Maynilad Water Supervisors Association v. Maynilad Water
Services, Inc. International School Alliance of Educators v. Hon. Quisumbing
FACTS: FACTS:
ISSUE/S: ISSUE/S:
HELD: HELD:
(c) Cases arising from the interpretation or implementation of Such liabilities shall continue during the entire period or duration
collective bargaining agreements and those arising from the of the employment contract and shall not be affected by any
interpretation or enforcement of company personnel policies substitution, amendment or modification made locally or in a
shall be disposed of by the Labor Arbiter by referring the same foreign country of the said contract.
to the grievance machinery and voluntary arbitration as may be
provided in said agreements. (As amended by Sec. 9, Rep. Act Any compromise/amicable settlement or voluntary agreement
No. 6715, March 21, 1989) on money claims inclusive of damages under this section shall be
paid within four (4) months from the approval of the settlement
Original & Exclusive Appellate by the appropriate authority.
1. Unfair labor practices 1. All cases decided by
2. Termination disputes Labor Arbiters In case of termination of overseas employment without just, valid
3. Wages, rates of pay, 2. Interpretation of or authorized cause as defined by law or contract, the workers
hours of work and other collective bargaining shall be entitled to the full reimbursement of his placement fee
terms and conditions of agreements with interest of twelve percent (12%) per annum, plus his salaries
employment with claim 3. Enforcement of company for the unexpired portion of his employment contract or for
for reinstatement personnel policies three (3) months for every year of the unexpired term, whichever
4. Actual, moral, exemplary, is less.
and other damages from
ER-EE relationship Non-compliance with the mandatory periods for resolutions of
5. Violation of 264 and cases provided under this section shall subject the responsible
legality of strikes and officials to any or all of the following penalties:
lockouts (a) The salary of any such official who fails to render his decision
- Benefits from ER-EE or resolutions within the prescribed period shall be, or caused to
except be, withheld until the said official complies therewith;
compensation, SSS, (b) Suspension for not more than ninety (90) days; or
Medicare, Maternity (c) Dismissal from the service with disqualifications to hold any
- Includes those is appointive public office for five (5) years.
domestic or
household service Provided, however, that the penalties herein provided shall be
without prejudice to any liability which any such official may have
incurred under other existing laws or rules and regulations as a
RA 8042, Sec. 10 Money Claims – Notwithstanding any consequence of violating the provisions of this paragraph.
provision of law to the contrary, the Labor Arbiters of the
National Labor Relations Commission (NLRC) shall have the Ma. Marcedes Barba v. Liceo de Cagayan University
original and exclusive jurisdiction to hear and decide, within FACTS:
ninety (90) calendar days after filing of the complaint, the claims 1. Dr. Mercedes was the Dean of the College of Physical
arising out of an employer-employee relationship or by virtue of Therapy of Liceo de Cagayan University, Inc.
any law or contract involving Filipino workers for overseas 2. She stated working as school physician for the school in
deployment including claims for actual, moral, exemplary and 1993 until 1994.
Art. 288 Penalties – Except as otherwise provided in this Code, Art. 292 Institution of money claims – Money claims specified in
or unless the acts complained of hinge on a question of the immediately preceding Article shall be filed before the
interpretation or implementation of ambiguous provisions of an appropriate entity independently of the criminal action that may
existing collective bargaining agreement, any violation of the be instituted in the proper courts.
provisions of this Code declared to be unlawful or penal in
nature shall be punished with a fine of not less than One Pending the final determination of the merits of money claims
Thousand Pesos (P1,000.00) nor more than Ten Thousand Pesos filed with the appropriate entity, no civil action arising from the
(P10,000.00) or imprisonment of not less than three months nor same cause of action shall be filed with any court. This provision
more than three years, or both such fine and imprisonment at shall not apply to employees compensation case which shall be
the discretion of the court. processed and determined strictly in accordance with the
pertinent provisions of this Code.
In addition to such penalty, any alien found guilty shall be
summarily deported upon completion of service of sentence. See also:
Any provision of law to the contrary notwithstanding, any
criminal offense punished in this Code, shall be under the Article III, Sec. 11, CON87 Free access to the courts and
concurrent jurisdiction of the Municipal or City Courts and the quasi-judicial bodies and adequate legal assistance shall not be
Courts of First Instance. (As amended by Section 3, Batas denied to any person by reason of poverty.
Pambansa Bilang 70)
Article III, Sec. 16, CON87 All persons shall have the right to
Art. 289 Who are liable when committed by other than natural a speedy disposition of their cases before all judicial, quasi-
person – If the offense is committed by a corporation, trust, firm, judicial, or administrative bodies.
partnership, association or any other entity, the penalty shall be
imposed upon the guilty officer or officers of such corporation,
trust, firm, partnership, association or entity.
6. W ork Relationship
Art. 290 Offenses – Offenses penalized under this Code and a. Definition: Employer and Employee
the rules and regulations issued pursuant thereto shall prescribe
in three (3) years. Art. 97 Definitions – As used in this Title:
All unfair labor practice arising from Book V shall be filed with (a.) "Person" means an individual, partnership, association,
the appropriate agency within one (1) year from accrual of such corporation, business trust, legal representatives, or any
unfair labor practice; otherwise, they shall be forever barred.
organized group of persons.
Art. 291 Money claims – All money claims arising from (b.) "Employer" includes any person acting directly or indirectly
employer-employee relations accruing during the effectivity of in the interest of an employer in relation to an employee and
this Code shall be filed within three (3) years from the time the shall include the government and all its branches, subdivisions
3 PARTIES INVOLVED:
Art. 106 Contractor or subcontractor - Whenever an employer
1. Principal - any employer who puts out or farms out a job,
enters into a contract with another person for the performance service or work to a contractor/subcontractor.
of the former’s work, the employees of the contractor and of the
2. Contractor or subcontractor – any person or entity
latter’s subcontractor, if any, shall be paid in accordance with the
engaged in a legitimate contracting or subcontracting
provisions of this Code.
arrangement.
3. Contractual employee – one employed by a contractor to
In the event that the contractor or subcontractor fails to pay the perform or complete a job work or service pursuant to an
wages of his employees in accordance with this Code, the
arrangement between the latter and the principal.
employer shall be jointly and severally liable with his contractor
performed under the contract, in the same manner and extent
General rule: No employer-employee relationship between the
that he is liable to employees directly employed by him. principal and contractual employee.
D.O. 18-A-11, Sec. 1 Guiding principles – Contracting However, the principal shall be deemed the direct employer of
and subcontracting arrangements are expressly allowed by law the contractor’s employee in cases where there is a finding by a
and are subject to regulations for the promotion of employment competent authority of labor-only contracting, or commission of
and the observance of the rights of workers to just and humane prohibited activities as provided in Sec. 7, or violation of either
conditions of work, security of tenure, self-organization and Sections 8 or 9 hereof.
collective bargaining. Labor-only contracting as defined herein
shall be prohibited. c. 3.1. Contracting
(9) Refusal to provide a copy of the Service Agreement and the (f) The description of the phases of the contract, including the
employment contracts between the contractor and the number of employees covered in each phase, where
employees deployed to work in the bargaining unit of the appropriate; and
principal’s certified bargaining agent to the sole and exclusive
bargaining agent (SEBA). (g) Proof of compliance with substantial capital requirement as
defined in Section 3(l) of these Rules.
(10) Engaging or maintaining by the principal of subcontracted
employees in excess of those provided for in the applicable The application shall be supported by:
Collective Bargaining Agreement (CBA) or as set by the Industry
Tripartite Council (ITC). (a) A certified true copy of a certificate of registration of firm or
B. Contracting out of jobs, works or services analogous to the business name from the Securities and Exchange Commission
above when not done in good faith and not justified by the (SEC), Department of Trade and Industry (DTI), Cooperative
exigencies of the business. Development Authority (CDA), or from the DOLE if the applicant
is a labor organization;
c. 8. Registration of contractors (b) A certified true copy of the license or business permit issued
by the local government unit or units where the contractor
D.O. 18-A-11, Sec. 14 Mandatory Registration and Registry of operates;
Legitimate Contractors. Consistent with the authority of the
Secretary of Labor and Employment to restrict or prohibit the (c) A certified listing, with proof of ownership or lease contract,
contracting out of labor to protect the rights of workers, it shall of facilities, tools, equipment, premises implements, machineries
be mandatory for all persons or entities, including cooperatives, and work premises, that are actually and directly used by the
acting as contractors, to register with the Regional Office of the contractor in the performance or completion of the job, work or
Department of Labor and Employment (DOLE) where it service contracted out. In addition, the applicant shall submit a
principally operates. photo of the office building and premises where it holds office;
Failure to register shall give rise to the presumption that the (d) A copy of audited financial statements if the applicant is a
contractor is engaged in labor-only contracting. corporation, partnership, cooperative or a labor organization, or
copy of the latest ITR if the applicant is a sole proprietorship;
Accordingly, the registration system governing contracting and
arrangements and implemented by the Regional Offices of the
DOLE is hereby established, with the Bureau of Working (e) A sworn disclosure that the registrant, its officers and owners
Conditions (BWC) as the central registry. or principal stockholders or any one of them, has not been
operating or previously operating as a contractor under a
different business name or entity or with pending cases of
D.O. 18-A-11, Sec. 15 Requirements for registration. The
violations of these Rules and/or labor standards, or with a
application for registration as a contractor shall be filed at the
cancelled registration. In case any of the foregoing has a
DOLE Regional Office in the region where it seeks to principally
pending case, a copy of the complaint and the latest status of
operate. The applicant shall provide in the application form the
the case shall be attached.
following information:
(c) The nature of the applicant’s business and the industry or MANDATORY REGISTRATION OF CONTRACTORS
industries where the applicant seeks to operate; Venue Regional office where it
principally operates
(d) The number of regular workers and the total workforce; Central Registry: Bureau of
Working Conditions (BWC)
(e) The list of clients, if any, the number of personnel assigned to Requirements Sec. 15, LC
each client, if any, and the services provided to the client; Effect of failure to register Presumption of labor-only
(i) Requiring them to perform functions which are currently being Global Resource for Outsourced Workers (GROW) Inc., v.
performed by the regular employees of the principal; and Abraham C. Velasco & Nanette T. Velasco
FACTS:
(ii) Requiring them to sign, as a precondition to employment or 1. Global Resource for Outsourced Workers (GROW), Inc. is a
continued employment, an antedated resignation letter; a blank domestic corporation engaged in the placement of workers
payroll; a waiver of labor standards including minimum wages for overseas deployment; Eusebio Tanco is the President
and social or welfare benefits; or a quitclaim releasing the 2. JAN 2008: Respondents Abraham and Nanette Velasco
principal, contractor or from any liability as to payment of future were hired by MS Retail, through GROW, as Circus
claims. Performer and Circus Performer-Assistant at MS Retail’s
Store in Kuwait
(4) Contracting out of a job, work or service through an in-house -‐ Their employment contracts stated that Abraham and
agency. Nanette were entitled to the following monthly
salaries and had the following work schedule:
(5) Contracting out of a job, work or service that is necessary or o Abraham (KD 650 or $2,303.92); Nanette (KD 150
desirable or directly related to the business or operation of the or $531.87)
principal by reason of a strike or lockout whether actual or o 4 shows/day; 6 days/week; 48 hours/month
imminent. -‐ It was also stipulated that MS Retail may determine
the hours of work assigned “from time to time in
(6) Contracting out of a job, work or service being performed by accordance with the general and particular
union members when such will interfere with, restrain or coerce requirements of the operation” of MS Retail
employees in the exercise of their rights to self-organization as -‐ When respondents are not actually performing shows,
provided in Art. 248 (c) of the Labor Code, as amended. they may be asked to carry out duties as the business
may require
(7) Repeated hiring of employees under an employment contract 3. FEB. 22, 2008: Velascos arrived in Kuwait, and were made
of short duration or under a Service Agreement of short duration to perform after a brief orientation
with the same or different contractors, which circumvents the -‐ They met with the store manager and brought up the
Labor Code provisions on Security of Tenure. work hours and show schedules in the employment
contract
(8) Requiring employees under a subcontracting arrangement to -‐ Were informed that the work hours of “48hrs/mo” was
sign a contract fixing the period of employment to a term a typographical error because the correct number of
shorter than the term of the Service Agreement, unless the working hours was 48 hours per week, to which they
contract is divisible into phases for which substantially different complied
skills are required and this is made known to the employee at 4. AUG. 26, 2008: Velascos went to Thailand on approved
the time of engagement. vacation leave
5. SEPT. 2, 2008: Abraham sent an email to Mr. Joseph San
(9) Refusal to provide a copy of the Service Agreement and the Juan, HR Coordinator of MS Retail, saying they couldn’t
employment contracts between the contractor and the return to work because of the political protests in Thailand,
employees deployed to work in the bargaining unit of the but that they had rebooked their return flight for Sept. 10
principal’s certified bargaining agent to the sole and exclusive 6. Instead of returning to Kuwait, they went home to the
bargaining agent (SEBA). Philippines on Sept. 9
7. SEPT. 17, 2008: Mr. San Juan emailed the Velascos asking
(10) Engaging or maintaining by the principal of subcontracted for their definite date of return, and warned them that if
employees in excess of those provided for in the applicable they do not immediately return to work before the end of
Collective Bargaining Agreement (CBA) or as set by the Industry the month, they will be dismissed from employment for
Tripartite Council (ITC). cause
B. Contracting out of jobs, works or services analogous to the
b. To furnish or publish any false notice or information or l. Failure to actually deploy a contracted worker without valid
document in relation to recruitment or employment; reason as determined by the Department of Labor and
Employment:
c. To give any false notice, testimony, information or document
or commit any act of misrepresentation for the purpose of m. Failure to reimburse expenses incurred by the worker in
securing a license or authority under the Labor Code, or for the connection with his documentation and processing for purposes
purpose of documenting hired workers with the POEA, which of deployment, in cases where the deployment does not actually
include the act of reprocessing workers through a job order that take place without the worker's fault. Illegal recruitment when
pertains to nonexistent work, work different from the actual committed by a syndicate or in large scale shall be considered
overseas work, or work with a different employer whether an offense involving economic sabotage; and
registered or not with the POEA;
n. To allow a non-Filipino citizen to head or manage a licensed
d. To include or attempt to induce a worker already employed to recruitment/manning agency.
quit his employment in order to offer him another unless the Illegal recruitment is deemed committed by a syndicate if carried
transfer is designed to liberate a worker from oppressive terms out by a group of three (3) or more persons conspiring or
and conditions of employment; confederating with one another. It is deemed committed in large
scale if committed against three (3) or more persons individually
e. To influence or attempt to influence any person or entity not or as a group.
to employ any worker who has not applied for employment
through his agency or who has formed, joined or supported, or In addition to the acts enumerated above, it shall also be
has contacted or is supported by any union or workers' unlawful for any person or entity to commit the following
organization; prohibited acts:
f. To engage in the recruitment or placement of workers in jobs 1. Grant a loan to an overseas Filipino worker with interest
harmful to public health or morality or to the dignity of the exceeding eight percent (8%) per annum, which will be used for
Republic of the Philippines; payment of legal and allowable placement fees and make the
migrant worker issue, either personally or through a guarantor or
g. To obstruct or attempt to obstruct inspection by the Secretary accommodation party, postdated checks in relation to the said
of Labor and Employment or by his duly authorized loan;
representative;
2. Impose a compulsory and exclusive arrangement whereby an
h. To fail to submit reports on the status of employment, overseas Filipino worker is required to avail of a loan only from
placement vacancies, remittance of foreign exchange earnings, specifically designated institutions, entities or persons;
separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor and 3. Refuse to condone or renegotiate a loan incurred by an
Employment; overseas Filipino worker after the latter's employment contract
has been prematurely terminated through no fault of his or her
i. To substitute or alter to the prejudice of the worker, own;
employment contracts approved and verified by the Department
The persons criminally liable for the above offenses are the Hon. Patricia A. Sto. Tomas v. Rey Salac et al
principals, accomplices and accessories. In case of juridical
Doctrine: The ff. provisions of RA 8042 are interpreted such:
persons, the officers having ownership, control, management or
Sec. 6—Illegal recruitment distinguishes between licensed and
direction of their business who are responsible for the
non-licensed recruitment entities, in that licensed entities are
commission of the offense and the responsible
guilty only of illegal recruitment if they commit the acts
employees/agents thereof shall be liable. enumerated in the section, while non- licensed entities
conducting recruitment activities are guilty of illegal recruitment,
In the filing of cases for illegal recruitment or any of the
whether or not they commit the acts enumerated.
prohibited acts under this section, the Secretary of Labor and
Sec. 7—It is within the power of Congress to fix penalties
Employment, the POEA Administrator or their duly authorized contained in this section, consistent with the State’s policy of
representatives, or any aggrieved person may initiate the
fully protecting labor.
corresponding criminal action with the appropriate office. For
Sec. 9—Allowing offended parties to file criminal actions in
this purpose, the affidavits and testimonies of operatives or
their places of residence is consistent with RA 8042’s policy of
personnel from the Department of Labor and Employment,
serving the best interests of the victims of illegal recruitment.
POEA and other law enforcement agencies who witnessed the Sec. 10—Corporate officers, directors, and partners of a
acts constituting the offense shall be sufficient to prosecute the
recruitment and placement agency are solidarily liable with their
accused.
agency only when it is shown that they have been remiss in
directing the agency’s affairs.
In the prosecution of offenses punishable under this section, the CASE # 1
public prosecutors of the Department of Justice shall collaborate
FACTS:
with the anti-illegal recruitment branch of the POEA and, in
1. 2002 – Rey Salac et al are recruiters deploying workers
certain cases, allow the POEA lawyers to take the lead in the
abroad
prosecution. The POEA lawyers who act as prosecutors in such 2. They filed a petition before the RTC to enjoin the Secretary
cases shall be entitled to receive additional allowances as may of Labor, Patricia Sto. Tomas, the POEA, and TESDA, from
be determined by the POEA Administrator.
regulating the activities of private recruiters. [filed petition
for certiorari, prohibition and mandamus and preliminary
The filing of an offense punishable under this Act shall be
injunction]
without prejudice to the filing of cases punishable under other 3. Rey et al invoked Sections 29 and 30 of the RA 8042 or the
existing laws, rules or regulations.
Migrant Workers Act which provides that recruitment
agencies in the Philippines shall be deregulated one year
b. 1.4. Government Techniques of Regulation – Private - A private employment agency for local employment should
Recruitment have a minimum net worth of P200,000 (single proprietorship) or
a minimum of P500,000 in paid up capital (corporation)
Techniques - A private recruitment or manning agency for overseas
1) Licensing—Qualifications as to: employment should have a minimum capital of P2,000,000 for
a) Citizenship single proprietorship OR minimum of P2,000,000 in paid up
b) Capitalization capital for corporations.
c) Validity of license
d) Non-transferability Part. II. Licensing and Regulation
e) Registration/license fees Rule I. Participation of the Private Sector in the Overseas
f) Bonds Employment Program
2) Placement fees (workers’fees/filingfees/licensefees) Section 1. Qualifications. Only those who possess the following
3) Reports/employment information qualifications may be permitted to engage in the business of
4) Illegal recruitment (simple or qualified/syndicated) recruitment and placement of Filipino workers:
5) Enforcement powers b. A minimum capitalization of Two Million Pesos (P2,000,000.00)
6) POEA Standard Employment Contract in case of a single proprietorship or partnership and a minimum
paid-up capital of Two Million Pesos (P2,000,000.00) in case of a
Exception: May conduct provincial recruitment (since most AMOUNT OF BOND (LOCAL VS. OVERSEAS)
licensees have official addresses in NCR) or job fairs only upon LOCAL (prior to the approval of license)
written authority from the POEA. 1. Cash bond 25K
2. Surety bond 100K
b. 1.4.i.e. Registration/license fees -‐ Both valid for two years.
1. License fee of P50,000 -‐ Will answer for all valid and legal claims arising from illegal
2. Escrow Agreement of P1M use of license and shall guarantee compliance with LC and
3. SuretybondofP100k its IRR.
4. Those with existing license, to increase escrow bond to
P1M within 4 years OVERSEAS (upon approval of the application for
license)
Art. 30 Registration Fees. – The Secretary of Labor shall 1. Escrow Agreement 1M
promulgate a schedule of fees for the registration of all 2. Surety bond 100k from a bonding company acceptable to
applicants for license or authority. POEA and accredited by insurance Commission
-‐ Surety Bond will cover validity of the period of the license.
Part. II. Licensing and Regulation Bonds and escrows will answer for all valid and legal claims
Rule II. Issuance of License arising from violations of the use of license and
Section 4. Payment of Fees and Posting of Bonds. Upon accreditation and contracts of employment.
approval of the application, the applicant shall pay a license fee -‐ POEA shall have the power to enforce liability under cash or
of P50,000.00. It shall submit an Escrow Agreement in the surety bonds.
amount of P1,000,000.00, confirmation of escrow deposit with an
accredited reputable bank and a surety bond of P100,000.00 Art. 31 vs Art. 223
from a bonding company acceptable to the Administration and -‐ Art. 31 Not limited to monetary awards to employees but
accredited with the Insurance Commission. also for violations by the recruiter of the conditions of its
license.
Agencies with existing licenses shall, within four years from -‐ Answers for:
effectivity hereof, increase their Escrow Deposit to One Million 1. Violations of the conditions for the grant and use of
Pesos . license or authority
2. Violations of labor laws
The bonds and escrow shall answer for all valid and legal claims 3. Violations of contract of employment
arising from violations of the conditions for the grant and use of -‐ Does not include claims against recruitment agency such as
the license, and/or accreditation and contracts of employment. reimbursement for the airline tickets used by the agency’s
The bonds and escrow shall likewise guarantee compliance with recruits.
the provisions of the Code and its implementing rules and -‐ Art. 223 Bond is a requirement for the perfection of an
regulations relating to recruitment and placement, the Rules of appeal. Refers claims for monetary awards to employees
the Administration and relevant issuances of the Department whose contract of employment has been violated.
and all liabilities which the Administration may impose. The
surety bonds shall include the condition “that notice to the Part. II. Licensing and Regulation
principal is notice to the surety and that any judgment against Rule II. Issuance of License
the principal in connection with matters falling under Section 4. Payment of Fees and Posting of Bonds. Upon
POEA’s/NLRC’s jurisdiction shall be binding and conclusive on approval of the application, the applicant shall pay a license fee
the surety. The surety bonds shall cover the validity period of the of P50,000.00. It shall submit an Escrow Agreement in the
license. amount of P1,000,000.00, confirmation of escrow deposit with an
accredited reputable bank and a surety bond of P100,000.00
b. 1.4.i.f. Bonds from a bonding company acceptable to the Administration and
- To answer for any violations and ensure compliance accredited with the Insurance Commission.
- Notice to the principal amounts to notice to the surety bond
Agencies with existing licenses shall, within four years from
Art. 31 Bonds. – All applicants for license or authority shall post effectivity hereof, increase their Escrow Deposit to One Million
such cash and surety bonds as determined by the Secretary of Pesos .
Art. 34 Prohibited Practices. – It shall be unlawful for any Other prohibited acts
individual, entity, licensee, or holder of authority: 1. Loan with interest more than 8%
(h) To fail to file reports on the status of employment, placement 2. Require exclusive and compulsory arrangement in:
vacancies, remittance of foreign exchange earnings, separation - Loans
from jobs, departures and such other matters or information as - Health examinations
Such liabilities shall continue during the entire period or duration RA 8042, as amended, Sec. 12 Prescriptive Periods. - Illegal
of the employment contract and shall not be affected by any recruitment cases under this Act shall prescribe in five (5) years:
substitution, amendment or modification made locally or in a Provided, however, That illegal recruitment cases involving
foreign country of the said contract. economic sabotage as defined herein shall prescribe in twenty
(20) years.
Any compromise/amicable settlement or voluntary agreement
on money claims inclusive of damages under this section shall be
b. 1.4.iv.a. When undertaken by non-licensees, non-holders
paid within thirty (30) days from approval of the settlement by
the appropriate authority.
b. 1.4.iv.b. Prohibited practices
Note: Art. 38 (c) declared UNCONSTITUTIONAL per Salazar v. Art. 36 Regulatory Power. – The Secretary of Labor shall have
Achacoso, relying on Art. III, Sec. 2 CON87 the power to restrict and regulate the recruitment and
placement activities of all agencies within the coverage of this
b. 1.4.v. Enforcement Powers Title and is hereby authorize to issue orders and promulgate
rules and regulations to carry out the objectives and implement
1. Rule-making the provisions of this Title.
-‐ To issue orders and promulgate rules
-‐ To suspend or cancel licenses or authority - RA 8042 once included a policy for deregulation of the
2. Regulatory regulatory function of the POEA. It was said that this goes
3. Visitorial against the very spirit of the law, which is to provide the full
-‐ Art. 38 (c), LC was unconstitutional for violating right protection to overseas workers.
against unreasonable search and seizure - However, the debate has been settled since RA 9422 repealed
-‐ May at any time inspect the premises, books of the deregulation provisions of RA 8042.
accounts, or records
-‐ May require to submit reports
-‐ Act on any violation b. 1.4.v.c. Visitorial power
b. 1.4.v.a. Rule-making power Art. 37 Visitorial Power. – The Secretary of Labor or his duly
authorized representatives may, at any time, inspect the
Art. 36 Regulatory Power. – The Secretary of Labor shall have premises, books of accounts and records of any person or entity
the power to restrict and regulate the recruitment and covered by this Title, require it to submit reports regularly on
placement activities of all agencies within the coverage of this prescribed forms, and act on violation of any provisions of this
Title and is hereby authorize to issue orders and promulgate Title.
rules and regulations to carry out the objectives and implement
the provisions of this Title. b. 1.4.vi. POEA Standard Employment Contract
Art. 36 Regulatory Power. – The Secretary of Labor shall have Wallem Maritime Services, Inc. v. Ernesto C. Tanawan (2012)
the power to restrict and regulate the recruitment and FACTS:
placement activities of all agencies within the coverage of this 1. Wallem Maritime Services Inc., then acting as a local agent
Title and is hereby authorize to issue orders and promulgate of Scandic Ship Management, Ltd., engaged Ernesto as
rules and regulations to carry out the objectives and implement dozer driver assigned to the vessel, M/V Eastern Falcon.
the provisions of this Title. 2. On one occasion, while Ernesto was assisting two co-
workers in lifting a steel plate aboard the vessel, a corner of
b. 1.4.v.b.1. Suspension or cancellation of License/Authority the steel plate touched the floor of the deck, causing the
sling to slide and the steel plate to hit his left foot. His x-ray
Art. 35 Suspension and/or Cancellation of License or Authority. examination showed he had suffered multiple fractures in
– The Minister of Labor shall have the power to suspend or his left toes
cancel any license or authority to recruit employees for overseas 3. Following Ernesto’s repatriation on November 28, 1997, the
employment for violation of rules and regulations issued by the company-designated physician, Dr. Robert D. Lim,
Ministry of Labor, the Overseas Employment Development conducted the evaluation and treatment of his foot injury.
Board, or for violation of the provisions of this and other 4. A series of medical treatments and physical therapy was
applicable laws, General Orders and Letters of Instructions. conducted.
5. On May 21, 1998, Dr. Lim reported that Ernesto was already
fit to work.
(n) To allow a non-Filipino citizen to head or manage a licensed The persons criminally liable for the above offenses are the
recruitment/manning agency. principals, accomplices and accessories. In case of juridical
persons, the officers having ownership, control, management or
Illegal recruitment is deemed committed by a syndicate if carried direction of their business who are responsible for the
out by a group of three (3) or more persons conspiring or commission of the offense and the responsible
confederating with one another. It is deemed committed in large employees/agents thereof shall be liable.
scale if committed against three (3) or more persons individually
or as a group. In the filing of cases for illegal recruitment or any of the
prohibited acts under this section, the Secretary of Labor and
In addition to the acts enumerated above, it shall also be Employment, the POEA Administrator or their duly authorized
unlawful for any person or entity to commit the following representatives, or any aggrieved person may initiate the
prohibited acts: corresponding criminal action with the appropriate office. For
this purpose, the affidavits and testimonies of operatives or
(1) Grant a loan to an overseas Filipino worker with interest personnel from the Department of Labor and Employment,
exceeding eight percent (8%) per annum, which will be used for POEA and other law enforcement agencies who witnessed the
payment of legal and allowable placement fees and make the acts constituting the offense shall be sufficient to prosecute the
(b) The penalty of life imprisonment and a fine of not less than Any compromise/amicable settlement or voluntary agreement
Two million pesos (P2,000,000.00) nor more than Five million on money claims inclusive of damages under this section shall be
pesos (P5,000,000.00) shall be imposed if illegal recruitment paid within thirty (30) days from approval of the settlement by
constitutes economic sabotage as defined therein. the appropriate authority.
Provided, however, That the maximum penalty shall be imposed In case of termination of overseas employment without just, valid
if the person illegally recruited is less than eighteen (18) years of or authorized cause as defined by law or contract, or any
age or committed by a non-licensee or non-holder of authority. unauthorized deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement if his
(c) Any person found guilty of any of the prohibited acts shall placement fee and the deductions made with interest at twelve
suffer the penalty of imprisonment of not less than six (6) years percent (12%) per annum, plus his salaries for the unexpired
and one (1) day but not more than twelve (12) years and a fine of portion of his employment contract or for three (3) months for
not less than Five hundred thousand pesos (P500,000.00) nor every year of the unexpired term, whichever is less.
more than One million pesos (P1,000,000.00).
In case of a final and executory judgement against a foreign
If the offender is an alien, he or she shall, in addition to the employer/principal, it shall be automatically disqualified, without
penalties herein prescribed, be deported without further further proceedings, from participating in the Philippine
proceedings. Overseas Employment Program and from recruiting and hiring
Filipino workers until and unless it fully satisfies the judgement
In every case, conviction shall cause and carry the automatic award.
revocation of the license or registration of the
recruitment/manning agency, lending institutions, training Noncompliance with the mandatory periods for resolutions of
school or medical clinic. case provided under this section shall subject the responsible
officials to any or all of the following penalties:
Omnibus Rules
Art. 41 (now 44) Definitions – As used in this Title:
Book I
Rule XIV
(a) "Manpower" shall mean that portion of the nation’s
Employment of Aliens
population which has actual or potential capability to contribute
directly to the production of goods and services.
SECTION 1. Coverage. — This Rule shall apply to all aliens
employed or seeking employment in the Philippines, and their
(b) "Entrepreneurship" shall mean training for self-employment
present or prospective employers.
or assisting individual or small industries within the purview of
this Title.
SECTION 2. Submission of list. — All employers employing
foreign nationals, whether resident or non-resident shall submit
Art. 42 (now 45) National Manpower and Youth Council; a list of such nationals to the Bureau indicating their names,
Composition – To carry out the objectives of this Title, the citizenship, foreign and local addresses; nature of employment
National Manpower and Youth Council, which is attached to the and status of stay in the Philippines.
Department of Labor for policy and program coordination and
hereinafter referred to as the Council, shall be composed of the SECTION 3. Registration of resident aliens. — All employed
Secretary of Labor as ex- officio chairman, the Secretary of resident aliens shall register with the Bureau under such
Education and Culture as ex-officio vice-chairman, and as ex- guidelines as may be issued by it.
officio members, the Secretary of Economic Planning, the
Secretary of Natural Resources, the Chairman of the Civil Service SECTION 4. Employment permit required for entry. — No alien
Commission, the Secretary of Social Welfare, the Secretary of seeking employment, whether on resident or non-resident
Local Government, the Secretary of Science and Technology, the status, may enter the Philippines without first securing an
Secretary of Trade and Industry and the Director-General of the employment permit from the Department of Labor and
Council. The Director General shall have no vote. Employment. If an alien enters the country under a non-working
visa and wishes to be employed thereafter, he may only be
- Art. 40 requires only non-resident aliens to secure employment allowed to be employed upon presentation of a duly approved
permit. Resident aliens are not so required. employment permit.
- For immigrants and resident aliens, what is required is an Alien
Employment Registration Certificate (AERC) SECTION 5. Requirements for employment permit application.
a. Coverage
- Non-resident aliens required to secure employment permit.
Resident aliens are not required.
Art. 40 (now 43) Statement of objective – It is the objective of
- Immigrants and resident aliens: Alien Employment
this Title to develop human resources, establish training
Registration Certificate
institutions, and formulate such plans and programs as will
- However, foreigners may not be employed in certain
ensure efficient allocation, development and utilization of the
“nationalized” businesses.
nation’s manpower and thereby promote employment and
1. Anti-dummy law prohibits employment of aliens in
accelerate economic and social growth.
entities that own or control a right reserved by law only
to Filipinos or corporations 60% of which are Filipino’s.
Omnibus Rules 2. Financing companies (same 60% rule)
Book I 3. Mass media enterprises
Rule XIV - Enterprises registered under the Omnibus Investments
Sec. 1 Coverage — This Rule shall apply to all aliens employed Code may for a limited period employ foreign nationals in
or seeking employment in the Philippines, and their present or technical, supervisory, or advisory positions.
prospective employers.
Andrew James McBurnie v. Eulalio Ganzon (2013)
DO 97-09, Sec. 1 Coverage – All foreign nationals who intend FACTS:
to engage in gainful employment in the Philippines shall apply 1. Andrew is an Australian National. On May 11, 1999, he
for Alien Employment Permit (AEP) signed a five-year employment agreement with the company
EGI-Managers, Inc. as an Executive Vice-President who shall
Rule I.1. oversee the management of the company’s hotels and
resorts within the Philippines.
2. He performed work for the company until sometime in
Exemption:
November 1999, when he figured in an accident that
compelled him to go back to Australia while recuperating
Rule I.2.
from his injuries.
Art. 74 When learners may be hired - Learners may be (a) The names and addresses of the learners;
employed when no experienced workers are available, the
employment of learners is necessary to prevent curtailment of (b) The duration of the learnership period, which shall not
employment opportunities, and the employment does not exceed three (3) months;
create unfair competition in terms of labor costs or impair or
lower working standards. (c) The wages or salary rates of the learners which shall begin at
not less than seventy-five percent (75%) of the applicable
RA 7794, Sec 4 (m) "Apprenticeable Occupation" is an minimum wage; and
occupation officially endorsed by a tripartite body and approved
for apprenticeable by the Authority (d) A commitment to employ the learners if they so desire, as
regular employees upon completion of the learnership.
Apprentice
For highly technical industries in apprenticeable occupations All learners who have been allowed or suffered to work during
the first two (2) months shall be deemed regular employees if
Learners training is terminated by the employer before the end of the
No employee available; employment is necessary to prevent stipulated period through no fault of the learners. The
curtailment of employment opportunities learnership agreement shall be subject to inspection by the
Secretary of Labor and Employment or his duly authorized
b. 4. Conditions of Employment representative.
Art. 61 Contents of apprenticeship agreements - Art. 76 Learners in piecework - Learners employed in piece or
Apprenticeship agreements, including the wage rates of incentive-rate jobs during the training period shall be paid in full
apprentices, shall conform to the rules issued by the Secretary of for the work done.
Labor and Employment. The period of apprenticeship shall not
exceed six months. Apprenticeship agreements providing for b. 5. Enforcement
wage rates below the legal minimum wage, which in no case
shall start below 75 percent of the applicable minimum wage, Art. 65 Investigation of violation of apprenticeship agreement -
may be entered into only in accordance with apprenticeship Upon complaint of any interested person or upon its own
programs duly approved by the Secretary of Labor and initiative, the appropriate agency of the Department of Labor
Employment. The Department shall develop standard model and Employment or its authorized representative shall
programs of apprenticeship. investigate any violation of an apprenticeship agreement
c. 1. Definition
d. The State also recognizes the role of the private sector in
promoting the welfare of disabled persons and shall encourage
RA 7277, Sec 4 partnership in programs that address their needs and concerns.
(a). Disabled persons are those suffering from restriction or e. To facilitate integration of disabled persons into the
different abilities, as a result of a mental, physical or sensory mainstream of society, the State shall advocate for and
impairment, to perform an activity in the manner or within the encourage respect for disabled persons. The State shall exert all
range considered normal for a human being efforts to remove all social, cultural, economic, environmental
and attitudinal barriers that are prejudicial to disabled persons.
(b) Impairment is any loss, diminution or aberration of
psychological, physiological, or anatomical structure or function
-‐ Disabled persons are part of Philippine society. Promote
improvement of the total well-being of disabled persons
(c) Disability shall mean (1) a physical or mental impairment that
-‐ Disabled persons have the same rights as other people
substantially limits one or more psychological, physiological or
-‐ Rehabilitation of the disabled persons
anatomical function of an individual or activities of such
-‐ Role of the private sector in promoting the welfare of
individual; (2) a record of such an impairment; (3) being regarded
disabled persons
as having such an impairment
-‐ Integration of disabled persons into the mainstream of
society
(d). Handicap refers to a disadvantage for a given individual,
resulting from an impairment or a disability, that limits or
c. 3. Coverage
prevents the function or activity, that is considered normal given
the age and sex of the individual.
RA 7277, Sec 3 Coverage — This Act shall cover all disabled
persons and, to the extent herein provided, departments, offices
c. 2. Policy Declaration
and agencies of the National Government or nongovernment
organizations involved in the attainment of the objectives of this
RA 7277, Sec . 2 Declaration of Policy — The grant of the Act.
rights and privileges for disabled persons shall be guided by the
following principles:
c. 4. Employment Rights and Privileges
(a) Any person who violates any provision of this Act shall suffer 4. Conditions of Employment
the following penalties:
A. HOURS OF WORK
(1) for the first violation, a fine of not less than Fifty
thousand pesos (P50,000.00) but not exceeding One hundred 1. Regulation; Rationale
thousand pesos (P100,000.00) or imprisonment of not less than
six (6) months but not more than two (2) years, or both at the -
To safeguard the health and welfare of the laborer
discretion of the court; and - To combat unemployment by compelling employers who go
(2) for any subsequent violation, a fine of not less than beyond 8 hours of operations to utilize different shifts of laborers
One hundred thousand pesos (P100,000.00) but not exceeding who would only work for 8 hours each.
Two hundred thousand pesos (P200,000.00) or imprisonment for
not less than two (2) years but not more than six (6) years, or both Manila Terminal Co. Inc. v. CIR
at the discretion of the court FACTS:
1. Sep. 1, 1945: After having undertaken the arrastre service in
(b) Any person who abuses the privileges granted herein shall be the Manila Port Area for the US Army, Manila Terminal Co
punished with imprisonment of not less than six (6) months or a (MTC) hired 30 people to serve as watchmen for 12-hour
fine of not less than Five thousand pesos (P5,000.00), but not shifts for compensation rate of P3.00/day for day shifts and
more than Fifty thousand pesos (P50,000.00), or both, at the P6.00/day for the night sfits.
discretion of the court. 2. Feb. 1, 1946: MTC continued to provide arrastre service in
the area, but this time, under a contract with the Bureau of
(c) If the violator is a corporation, organization or any similar Customs. The watchmen who were hired continued with their
entity, the officials thereof directly involved shall be liable services and also received an increase in their pay (now at
therefor. P4.00/day for day shift and P6.25/day for night shift).
3. Mar 28, 1947: Dominador Jimenez, from the Manila Terminal
(d) If the violator is an alien or a foreigner, he shall be deported Relief and Mutual Aid Assoc. (MTRMAA), sent a letter to the
immediately after service of sentence without further Dept. of Labor (DOL), requesting them to investigate the
deportation proceedings. matter of overtime pay (from the excess four hours when it
was still 12-hour shifts that were observed). DOL, however,
failed to act on this request. One month later, Victorino
SUMMARY OF JUSTICE SECRETARY’S ENFORCEMENT Magno Cruz and 5 other employees, also from MTRMAA,
POWERS filed a 5-point demand with the DOL but again, DOL failed
Undertake periodic reviews of compliance to act on the demand.
Duty of Sec. of
May file legal action against those who 4. May 24, 1947: MTC started to implement the system of strict
Justice
engage in the practice of discrimination 8-hour shifts.
Equitable reliefs Temporary, preliminary or permanent relief
Managerial employees
- Governed by Civil Service Commission, salaries
-‐ Primary duty consists of the management of the
standardized, no reduction of existing wages, benefits and
establishment
other terms and conditions of employment
-‐ Customarily and regularly direct the work of two or more
employees
EXCEPTION: Employees of GOCCs created under the
-‐ Authority to hire or fire employees of lower rank (Not merely
Corporation Code
routinary, or clerical but with the exercise of independent
judgment)
2. b. Managerial employees
Piece-rate Workers
ISSUES: 4. a. On duty
1. WON the certiorari filed in the CA was the proper recourse
(YES) Art. 84 (a). Hours worked. - Hours worked shall include all time
2. WON there was an ER-EE relationship existing (YES) during which an employee is required to be on duty or to be at a
3. WON there was valid termination (NO) prescribed workplace.
Art. 87 Overtime work. Work may be performed beyond eight Sec. 9 Premium and overtime pay for holiday and rest day work.
(8) hours a day provided that the employee is paid for the — (a) Except employees referred to under Section 2 of this Rule,
overtime work, an additional compensation equivalent to his an employee who is permitted or suffered to work on special
regular wage plus at least twenty-five percent (25%) thereof. holidays or on his designated rest days not falling on regular
Work performed beyond eight hours on a holiday or rest day holidays, shall be paid with an additional compensation as
shall be paid an additional compensation equivalent to the rate premium pay of not less than thirty percent (30%) of his regular
of the first eight hours on a holiday or rest day plus at least thirty wage. For work performed in excess of eight (8) hours on special
percent (30%) thereof. holidays and rest days not falling on regular holidays, an
employee shall be paid an additional compensation for the
overtime work equivalent to his rate for the first eight hours on a
Art. 88 Undertime not offset by overtime. Undertime work on
special holiday or rest day plus at least thirty percent (30%)
any particular day shall not be offset by overtime work on any
"'Night worker' means any employed person whose work "(a) Before and after childbirth, for a period of at least sixteen
requires performance of a substantial number of hours of night (16) weeks, which shall be divided between the time before and
work which exceeds a specified limit. This limit shall be fixed by after childbirth;
the Secretary of Labor after consulting the workers'
representatives/labor organizations and employers." "(b) For additional periods, in respect of winch a medical
certificate IS produced stating that said additional periods are
"Article 155. Health Assessment. - At their request, workers shall necessary for the health of the mother or child:
have the right to undergo a health assessment without charge
and to receive advice on how to reduce or avoid health "(1) During pregnancy;
problems associated with their work:
"(2) During a specified time beyond the period, after childbirth is
"(a) Before taking up an assignment as a night worker; fixed pursuant to subparagraph (a) above, the length of which
shall be determined by the DOLE after consulting the labor
"(b) At regular intervals during such an assignment; and organizations and employers.
"(c) If they experience health problems during such, an "During the periods referred to in this article:
assignment which are not caused by factors other than the
performance of night work. "(i) A woman worker shall not be dismissed or given notice of
dismissal, except for just or authorized causes provided for in
"With the exception of a finding of unfitness for night work, the this Code that are not connected with pregnancy, childbirth and
findings of such assessments shall not be transmitted to others childcare responsibilities.
without the workers' consent and shall not be used to their
detriment." "(ii) A woman worker shall not lose the benefits regarding her
status, seniority, and access to promotion which may attach to
"Article 156. Mandatory Facilities. - Suitable first·aid facilities her regular night work position.
shall be made available for workers performing night work,
including arrangements where such workers, where necessary, "Pregnant women and nursing mothers may be allowed to work
can be taken immediately to a place for appropriate treatment. .at night only if a competent physician, other than the company
The employers are likewise required to provide safe and physician, shall certify their fitness to render night work, and
healthful working conditions and adequate or reasonable specify, in the case of pregnant employees, the period of the
facilities such as sleeping or resting quarters in the establishment pregnancy that they can safely work.
and transportation from the work premises to the nearest point
of their residence subject to exceptions and guidelines to be "The measures referred to in this article may include transfer to
provided by the DOLE." day work where this is possible, the provision of social security
benefits or an extension of maternity leave.
"Article 157. Transfer. - Night workers who are certified as unfit
for night work, due to health reasons, shall be transferred, "The provisions of this article shall not leave the effect of
whenever practicable, to a similar job for which they are fit to reducing the protection and benefits connected with maternity
work. leave under existing laws."
"If such transfer to a similar job is not practicable, these workers "Article 159. Compensation. The compensation for night workers
shall be granted the same benefits as other workers who are in the form of working time, pay or similar benefits shall
unable to work, or to secure employment during such period. recognize the exceptional nature of night work."
Coverage and exclusion: As used herein, "managerial employees" refer to those whose
All workers except:
primary duty consists of the management of the establishment in
1. Gov’t employees
which they are employed or of a department or subdivision
2. Retail and service establishments regularly employing not
thereof, and to other officers or members of the managerial
more than 5 workers staff.
a. Retail: sale of goods to end-users for personal or
household use
"Field personnel" shall refer to non-agricultural employees who
b. Service: sale of service to individuals for their household
regularly perform their duties away from the principal place of
use business or branch office of the employer and whose actual
3. Domestic helpers and persons in the personal service of
hours of work in the field cannot be determined with reasonable
another
certainty.
4. Managerial employees
5. Managerial staff
Rule II, Sec. 1 Coverage. — This Rule shall apply to all
6. Field personnel
employees except:
-‐ Paid by results
(a) Those of the government and any of its political subdivisions,
-‐ Paid on commission basis
including government-owned and/or controlled corporations;
C. HOLIDAYS
Book III Conditions of Employment
Rule III Weekly Rest Periods
Sec. 7 (a) Except those employees referred to under Section 2, Art. 94 Right to holiday pay.
Rule I, Book Three, an employee who is made or permitted to a. Every worker shall be paid his regular daily wage during
work on his scheduled rest day shall be paid with an additional regular holidays, except in retail and service establishments
compensation of at least 30% of his regular wage. An employee regularly employing less than ten (10) workers;
shall be entitled to such additional compensation for work b. The employer may require an employee to work on any
performed on a Sunday only when it is his established rest day. holiday but such employee shall be paid a compensation
(b) Where the nature of the work of the employee is such that he equivalent to twice his regular rate; and
has no regular work days and no regular rest days can be c. As used in this Article, "holiday" includes: New Year’s Day,
scheduled, he shall be paid an additional compensation of at Maundy Thursday, Good Friday, the ninth of April, the first of
least 30% of his regular wage for work performed on Sundays May, the twelfth of June, the fourth of July, the thirtieth of
and holidays. November, the twenty-fifth and thirtieth of December and the
day designated by law for holding a general election.
7. CBA on Higher Premium Pay
SUMMARY OF HOLIDAYS
Art. 93 Compensation for rest day, Sunday or holiday work. Coverage All workers
d. Where the collective bargaining agreement or other Exceptions 1. Those in retail or service establishments
applicable employment contract stipulates the payment of a with less than 10 workers
higher premium pay than that prescribed under this Article, the 2. Government employees
employer shall pay such higher rate. 3. Domestic helpers and persons in the
personal service of another
4. Managerial employees
Book III Conditions of Employment
5. Field personnel, including:
Rule III Weekly Rest Periods
a. Those paid on a commission basis
Sec. 7 (e) Where the collective bargaining agreement or other
b. Those paid a fixed amount for
applicable employment contract stipulates the payment of a
performing work irrespective of the
higher premium pay than that prescribed under this Section, the
time consumed
employer shall pay such higher rate.
Regular 1. New Year’s Day – January 1
Holidays* 2. Maundy Thursday
Book III Conditions of Employment 3. Good Friday
Rule III Weekly Rest Periods 4. Araw ng Kagitingan (April 9)
Sec. 9 Relation to agreements. — Nothing herein shall prevent 5. Labor Day – May 1
the employer and his employees or their representatives in 6. Independence Day – June 12
entering into any agreement with terms more favorable to the 7. National Heroes Day – Last Sunday of
employees than those provided herein, or be used to diminish August
B2017 Herrera-Lim | Husmillo | Santos “FRONNIE NOTES”
LAW 113 LABOR | PROF. DAWAY 159
8. Bonifacio Day – November 30 1. For regular holidays as provided for under EO 203
9. Christmas Day – December 25 (incorporated in EO 292) as amended by RA 9177 the
10. Rizal Day – December 30 following rules shall apply:
Special 1. All Saints Day – November 1
Holidays* 2. Last Day of the Year – December 31 New Year's Day - January 1
Twice his regular rate
Maundy Thursday - Movable Date
Faculty in private school – Not paid for
regular holidays during semestral vacation Good Friday - Movable Date
Holiday Pay but regular holidays during Christmas
Araw ng Kagitingan - April 9
vacation are paid
Divisor as factor Labor Day - May 1
Sunday Independence Day - June 12
Official Muslim 1. ‘Amun Jadid (New Year), which falls on
Holidays** the 1st day of the 1st lunar month of National Heroes Day - Last Sunday of August
Muharram; Bonifacio Day - November 30
2. Maulid-un-Nabi (Birthday of the Prophet
Muhammad), which falls on the 12th day of Eidul Fitr - Movable Date
the 3rd lunar month of Rabi-ul-Awwal; Christmas Day - December 25
3. Lailatul Isra Wal Mi’raj (Nocturnal Journey
and Ascension of the Prophet Rizal Day - December 30
Muhammad), which falls on the 27th day of
the 7th lunar month of Rajab; a. If it is an employee's regular workday
4. ‘Id-ul-Fitr (Hari Raya Pausa), which falls on i. If unworked - 100%
the 1st day of the 10th lunar month of ii. If worked
Shawwal, commemorating the end of the - 1st 8 hours - 200%
fasting season; and - excess of 8 hours - plus 30% of hourly rate
5. ‘Id-ul-Adha (Hari Raja Haji), which falls on on said day
the 10th day of the 12th lunar month of Dhu
l-Hijja b. If it is an employee's rest day
If on leave of absence: i. If unworked - 100%
- With pay: entitled to holiday pay ii. If worked
- Without pay: not paid if absent on the day - 1st 8 hours - plus 30% of 200%
before holiday - excess of 8 hours - plus 30% of hourly rate
Absences
Successive holidays: If absent on the day on said day
before holiday, only entitled to the second
holiday pay (for Maundy Thursday and Good 2. For declared special days such as Special Non-Working
Friday) Day, Special Public Holiday, Special National Holiday, in
Non-working If day before holiday is rest day, he will be addition to the two (2) nationwide special days (November
Day, Rest Day entitled provided that he worked before the 1, All Saints Day and December 31, Last Day of the Year)
rest day listed under EO 203, as amended, the following rules shall
* via RA 9242, as amended by EO 292 apply:
** Art. 169, PD 1083, “Official Muslim Holidays”
a. If unworked
MEMORANDUM CIRCULAR NO. 01 - No pay, unless there is a favorable company
policy, practice or collective bargaining
Pursuant to the provisions of the Labor Code, as amended in agreement (CBA) granting payment of wages on
relation to the observance of declared holidays and in response special days even if unworked.
to the queries received every time a Presidential Proclamation or
a law is enacted by Congress which declares certain days either b. If worked
as a regular holiday, a special day or a special working holiday, - 1st 8 hours - plus 30% of the daily rate of 100%
the following guidelines shall be observed by all employers in - excess of 8 hours - plus 30% of hourly rate on
the private sector: said day
3. For those declared as special working holidays, the Rizal Day - December 30
following rules shall apply:
For work performed, an employee is entitled only to his
basic rate. No premium pay is required since work (B) Nationwide Special Days
performed on said days is considered work on ordinary
working days. All Saints Day - November 1
Holiday Pay for Monthly Paid Employees Last Day of the Year - December 31
- A reading of Art. 94 reveals that monthly paid employees
have not been excluded from the coverage of holiday pay.
Hence, they are entitled to the said benefit. (2) The terms "legal or regular holiday" and "special holiday",
- Even if the divisor is lower than 365, the divisor is acceptable as used in laws, orders, rules and regulations or other issuances
as long as the daily rate is at least equal or greater than the shall be referred to as "regular holiday" and "special day",
legal minimum rate. respectively.
- If the holiday falls on a Sunday, there is no legal obligation
for the employer to pay extra, aside from the usual holiday
RA 9492, Sec. 1 Section 26, Chapter 7, Book I of Executive
pay, per the Court’s ruling in Wellington v. Trajano.
Order No. 292, as amended, otherwise known as the
Administrative Code of 1987, is hereby amended to read as
follows:
1. Coverage/Exclusions
"Sec. 26, Regular Holidays and Nationwide Special Days. – (1)
Unless otherwise modified by law, and or proclamation, the
Art. 94(a) Every worker shall be paid his regular daily wage following regular holidays and special days shall be observed
during regular holidays, except in retail and service in the country:
establishments regularly employing less than ten (10) workers;
a) Regular Holidays
EO 292, Sec. 26 Regular Holidays and Nationwide Special New Year’s Day - Jan. 1
Days. - Maundy Thursday - Movable Date
Good Friday - Movable Date
Unless otherwise modified by law, order or proclamation, the Eidul Fitr - Movable Date
following regular holidays and special days shall be observed Araw ng Kagitingan - Monday nearest Apr. 9
in this country: Labor Day - Monday nearest May 1
Independence Day - Monday nearest Jun 12
(A) Regular Holidays National Heroes Day - Last Monday of August
Bonifacio Day - Monday nearest Nov 30
New Year's Day - January 1 Christmas Day - Dec 25
Rizal Day - Monday nearest Dec 30
Maundy Thursday - Movable date
b) Nationwide Special Holidays
Good Friday - Movable date Ninoy Aquino Day - Monday nearest Aug 21
All Saints Day - Nov 1
Araw ng Kagitingan - April 9 Last Day of the Year - Dec 31
(Bataan and Corregidor Day)
c) In the event the holiday falls on a Wednesday, the holiday
Labor Day - May 1 will be observed on the Monday of the week. If the holiday falls
on a Sunday, the holiday will be observed on the Monday that
Independence Day - June 12 follows:
Provided, That for movable holidays, the President shall
National Heroes Day - Last Sunday of August issue a proclamation, at least six months prior to the
holiday concerned, the specific date that shall be declared
Provided, however, The Eidul Adha shall be celebrated as a Mantrade/FMMC Division Employees and Workers Union v.
regional holiday in the Autonomous Region in Muslim Bacungan
Mindanao.” FACTS:
1. Petitioner (Mantrade/FMMC Division Employees and
Art. 82 Coverage. The provisions of this Title shall apply to Workers Union filed this petition for Certiorari and
employees in all establishments and undertakings whether for Mandamus against respondent (Arbitrator Froilan
profit or not, but not to government employees, managerial Bacungan) and respondent-company (Mantrade
employees, field personnel, members of the family of the Development Corporation.)
employer who are dependent on him for support, domestic 2. The petition arose from a decision by Bacungan, holding
helpers, persons in the personal service of another, and workers that Mantrade Development Corporation is not under any
who are paid by results as determined by the Secretary of Labor legal obligation to pay holiday pay to its monthly paid
in appropriate regulations. employees who are uniformly paid by the month,
irrespective of the number of working days therein.
As used herein, "managerial employees" refer to those whose 3. In denying petitioner’s claim for holiday pay, respondent
primary duty consists of the management of the establishment in arbitrator stated that although monthly salaried employees
which they are employed or of a department or subdivision are not among those included under Art. 94, LC, they
thereof, and to other officers or members of the managerial appear to be excluded under Sec. 2, Rule IV, Book III of the
staff. Rules and Regulations implementing said provision.
4. Respondent-corporation, on the other hand, contends that
"Field personnel" shall refer to non-agricultural employees who the present action is barred pursuant to Article 263, LC,
regularly perform their duties away from the principal place of which provides in part that “voluntary arbitration awards or
business or branch office of the employer and whose actual decisions shall be final, inappealable, and executory,” in
hours of work in the field cannot be determined with reasonable relation to Sec. 3 and 29 of the Arbitration Law (R.A. 876)
certainty. which excludes arbitration in labor disputes from those
appealable by certiorari.
5. Lastly, respondent-company contends that the special civil
Book III Conditions of Employment
Rule IV Holidays with Pay action of certiorari does not lie because respondent
arbitrator is not an “officer exercising judicial functions”
Sec. 1 Coverage. — This rule shall apply to all employees
within the contemplation of Rule 65, section 1.
except:
(a) Those of the government and any of the political subdivision,
including government-owned and controlled corporation; ISSUES:
1. WON certiorari could lie in reviewing the decision of the
(b) Those of retail and service establishments regularly
arbitrator (YES)
employing less than ten (10) workers;
2. WON respondent-company is exempted from granting
(c) Domestic helpers and persons in the personal service of
another; holiday pay to monthly-paid employees (NO)
(d) Managerial employees as defined in Book Three of the Code; 3. WON mandamus may lie to compel Mantrade to pay
holiday pay (YES)
(e) Field personnel and other employees whose time and
performance is unsupervised by the employer including those
HELD:
who are engaged on task or contract basis, purely commission
basis, or those who are paid a fixed amount for performing work 1. Court held: Contrary to Mantrade’s contention, SC
has power to review decision of respondent
irrespective of the time consumed in the performance thereof.
arbitrator
- Issue was already decided in the case of Oceanic Bic
1. a. Retail Establishment
Division vs. Romero (1984)
o While decisions of voluntary arbitrators must be
RA 6727, f "Retail Establishment" is one principally engaged in
given respect and, as a general rule, must be
the sale of goods to end-users for personal or household use;
accorded a certain measure of finality, it is not
correct however, that this respect precludes the
1. b. Service Establishment exercise of judicial review over the decisions.
o Art. 262, LC which makes voluntary arbitration
RA 6727, g "Service Establishment" is one principally engaged awards final, inappealable and executory refers only
in the sale of service to individuals for their own or household to appeals to NLRC and not to judicial review
Sec. 6 Relation to agreements. — Nothing in the Rule shall Book III Conditions of Employment
justify an employer from withdrawing or reducing any benefits, Rule V Service Incentive Leave
supplements or payments as provided in existing individual or Sec. 1 Coverage. — This rule shall apply to all employees
collective agreements or employer's practices or policies. except:
(a) Those of the government and any of its political subdivisions,
SUMMARY OF SERVICE INCENTIVE LEAVE including government-owned and controlled corporations;
Coverage All employees who have rendered at least 1 (b) Domestic helpers and persons in the personal service of
year of service another;
Exceptions 1. Those already enjoying the benefits (c) Managerial employees as defined in Book Three of this Code;
2. Those employed in establishments (d) Field personnel and other employees whose performance is
exempted from granting this benefit unsupervised by the employer including those who are engaged
3. Government and GOCC employees on task or contract basis, purely commission basis, or those who
4. Domestic helpers and persons in the are paid a fixed amount for performing work irrespective of the
personal service of another time consumed in the performance thereof;
5. Managerial employees (e) Those who are already enjoying the benefit herein provided;
6. Field personnel (f) Those enjoying vacation leave with pay of at least five days;
7. Commission basis and
8. Paid fixed amount for performing work (g) Those employed in establishments regularly employing less
irrespective of the time consumed than ten employees.
9. Those with vacation leave with pay of at
least five days Makati Haberdashery, Inc. v. NLRC
10. Establishments regularly employing less Complainants here are the Sandigan ng Manggagawang
than ten employees Pilipino—TUCP and members: Jacinto Garciano, Alfredo Basco,
Requirements At least one year of service with yearly Victorio Laureto, Ester Narvaez, Eugenio Robles, Belen Vista,
incentive leave of 5 days with pay Alejandro Estrabo, Vevencio Tiro, Casimiro Zapata, Gloria
- Service for not less than 12 months, Estrabo, Leonora Mendoza, Macaria Dimpas, Merilyn Viray, Lily
whether continuous or broken from the Opina, Janet Sangdang, Josefina Alcoceba, Maria Angeles
date of actual work of EE FACTS:
- Includes authorized absences and paid 1. Complainants/respondents have been working for Makati
regular holidays unless the working days Haberdashery as tailors, seamstress, sewers, basters
in the establishment as a matter of (manlililip) and “plantsadoras”
practice or policy, or that provided in the - Paid on a piece-rate basis, except Maria and Leonila
employment contract is less than 12 who are paid monthly
months, in which case said period shall - In addition to piece-rate, they are given daily allowance
be considered as one year of P3.00 provided they report for work before 9:30AM
Treatment of Convertible to cash if not exhausted at the everyday
benefit end of the year. - Work hours are 9:30AM to 6 or 7PM, Mon to Sat and
during peak periods even Sundays and holidays
- The basis of the commutation/conversion of the SIL shall be 2. July 20, 1984: Sandigan ng Manggagawang Pilipino, a labor
the salary rate at the date of commutation/conversion. organization of the workers, filed a complaint for:
1) underpayment of the basic wage
1. Coverage/Exclusions 2) underpayment of living allowance
IRR, RA 8187, Sec. 3 Conditions to entitlement of paternity If the violation is committed by a corporation, trust or firm,
leave benefits. — A married male employee shall be entitled to partnership, association or any other entity, the penalty of
paternity benefits provided that: imprisonment shall be imposed on the entity's responsible
officers, including, but not limited to, the president, vice-
a. he is an employee at the time of delivery of his child; president, chief executive officer, general manager, managing
director or partner directly responsible therefor.
b. he is cohabiting with his spouse at the time she gives birth or
suffers a miscarriage. SECTION 10. Penalty. — Any person, corporation, trust, firm,
partnership, association or entity found violating any provision of
c. he has applied for paternity leave in accordance with Section 4 these Rules shall be penalized by a fine not exceeding twenty
hereof; and five thousand pesos (P25,000) or imprisonment of not less than
thirty (30) days nor more than six (6) months.
d. his wife has given birth or suffered a miscarriage.
If the violation is committed by a corporation, trust or firm,
IRR, RA 8187, Sec. 4 Application for leave — The married partnership, association or any other entity, the penalty of
male employees shall apply for paternity leave with his employer imprisonment shall be imposed on the entity’s responsible
within a reasonable period of time from the expected date of officers, including but not limited to, the president, vice
delivery by the pregnant spouse, or within such period as may president, chief executive officer, general manager, managing
be provided by company rules and regulations or by collective director or partner directly responsible therefor.
bargaining agreement, provided that prior application for leave
shall not be required in case of miscarriage. 8. Employment – Related Rights and Benefits
6. Treatment of Benefit
c. he has applied for paternity leave in accordance with Section 4
hereof; and
IRR, RA 8187 Sec. 7 The benefits specified hereunder shall be
non-cumulative and strictly non-convertible to cash. d. his wife has given birth or suffered a miscarriage.
B2017 Herrera-Lim | Husmillo | Santos “FRONNIE NOTES”
LAW 113 LABOR | PROF. DAWAY 177
(2) Parent left solo or alone with the responsibility of
parenthood due to death of spouse;
IRR, RA 8187, Sec. 1 Definition of Terms — As used in these
Rules, the following terms shall have the meaning as indicated (3) Parent left solo or alone with the responsibility of
hereunder: parenthood while the spouse is detained or is serving
sentence for a criminal conviction for at least one (1) year;
(b) “Employee” refers to any person who performs services for
another and receives compensation therefor, provided an (4) Parent left solo or alone with the responsibility of
employer-employee relationship exists between them. parenthood due to physical and/or mental incapacity of
spouse as certified by a public medical practitioner;
IRR, RA 8187, Sec. 3 Conditions to entitlement of paternity
leave benefits. — A married male employee shall be entitled to (5) Parent left solo or alone with the responsibility of
paternity benefits provided that: parenthood due to legal separation or de facto separation
from spouse for at least one (1) year, as long as he/she is
(a) he is an employee at the time of delivery of his child; entrusted with the custody of the children;
Sec. 8 Parental Leave - In addition to leave privileges under RA 8972, Sec. 6 Flexible Work Schedule - The employer shall
existing laws, parental leave of not more than seven (7) working provide for a flexible working schedule for solo parents:
days every year shall be granted to any solo parent employee Provided, That the same shall not affect individual and company
who has rendered service of at least one (1) year. productivity: Provided, further, That any employer may request
exemption from the above requirements from the DOLE on
IRR, RA 8972, Art. IV, Sec. 7 Criteria for Support – Any solo certain meritorious grounds.
parent whose income in the place of domicile falls equal to or
below the poverty threshold as set by the NSCB and subject to IRR, RA 8972, Art V. Sec. 16 Flexible Work Schedule – The
the assessment of the duly appointed or designated social employer shall provide for a flexible work schedule for solo
worker in the area shall be eligible for assistance: Provided, parents: Provided, That the same shall not affect individual and
however, That any solo parent whose income is above the company productivity: Provided further, That any employer may
poverty threshold shall enjoy the benefits mentioned in Sections request exemption from the above requirements from the DOLE
16, 17, 18, 19, 20, 21 and 23 of these Rules. on certain meritorious grounds.
For purposes of the Act and these Rules, the place of domicile In the case of employees in the government service, flexible
shall refer to the residence mentioned in Section 8(a) of these working hours will be subject to the discretion of the head of the
Rules. agency. In no case shall the weekly working hours be reduced in
the event the agency adopts the flexible working hours schedule
4. Qualifications of Solo Parents format (flexi-time). In the adoption of flexi-time, the core working
hours shall be prescribed taking into consideration the needs of
IRR, RA 8972, Sec. 8 Qualifications of Solo Parent – A solo the service.
parent seeking benefits other than those provided for under
Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules shall be 5. b. Work Discriminations
qualified on the basis of the following:
RA 8972, Sec. 7 Work Discrimination - No employer shall
(a) A resident of the area where the assistance is sought, as discriminate against any solo parent employee with respect to
certified by the barangay captain; Provided, that if the solo terms and conditions of employment on account of his/her
parent is a transferee from another barangay, he/she is required status.
to secure a clearance from his/her previous barangay, indicating
whether or not he/she has availed of any benefits for solo IRR, RA 8972, Art. V Sec. 17 Work Discrimination – No
parents, and the nature of such benefits. employer shall discriminate against any solo parent employee
with respect to terms and conditions of employment on account
(b) With an income level equal to or below the poverty threshold of his/her status.
as set forth by NSCB and assessed by a social worker as
provided for under Section 7 of these Rules.
5. c. Leave
(a) He/She has rendered at least one (1) year of service whether
(e) "Flexible work schedule" - is the right granted to a solo
continuous or broken at the time of the affectivity of the Act;
parent employee to vary his/her arrival and departure time
without affecting the core work hours as defined by the
(b) He/She has notified his/her employer of the availment thereof
employer.
within a reasonable time period; and
5. a. Flexible Work Schedule (c) He/She has presented a Solo Parent Identification Card to
Any employer who shall prejudice the right of the person under 1. Covered employees
this section shall be penalized in accordance with the provisions
of the Labor Code and Civil Service Rules and Regulations. RA 9710 (Magna Carta for Women), Sec. 18 Special Leave
Likewise, an employer who shall prejudice any person for Benefits for Women - A woman employee having rendered
assisting a co-employee who is a victim under this Act shall continuous aggregate employment service of at least six (6)
likewise be liable for discrimination. months for the last twelve (12) months shall be entitled to a
special leave benefit of two (2) months with full pay based on her
IRR, RA 9262, Rule IV, Sec. 42 Ten-day paid leave in gross monthly compensation following surgery caused by
addition to other leave benefits - At any time during the gynecological disorders.
application of any protection order, investigation, prosecution
and/or trial of the criminal case, a victim of VAWC who is J. SERVICE CHARGES
employed shall be entitled to a paid leave of up to ten (10) days
in addition to other paid leaves under the Labor Code and Civil Art. 96 Service charges - All service charges collected by hotels,
Service Rules and Regulations and other existing laws and restaurants and similar establishments shall be distributed at the
company policies, extendible when the necessity arises as rate of eighty-five percent (85%) for all covered employees and
specified in the protection order. The Punong
B2017 Herrera-Lim | Husmillo | Santos “FRONNIE NOTES”
LAW 113 LABOR | PROF. DAWAY 181
fifteen percent (15%) for management. The share of the covered employees. The 15% shall be for the disposition by
employees shall be equally distributed among them. In case the management to answer for losses and breakages and
service charge is abolished, the share of the covered employees distribution to managerial employees at the discretion of the
shall be considered integrated in their wages. management in the latter case.
The provision allows management to retain 15% of the service 4. Frequency of Distribution
charge to answer for loss and breakages, as well as for
distribution to managerial employees. OR, Book III Rule VI, Sec. 4 Frequency of distribution — The
shares referred to herein shall be distributed and paid to the
OR, Book III Rule VI employees not less than once every two (2) weeks or twice a
Sec. 6 Relation to agreements — Nothing in this Rule shall month at intervals not exceeding sixteen (16) days.
prevent the employer and his employees from entering into any
agreement with terms more favorable to the employees than 5. Rule if abolished
those provided herein, or be used to diminish any benefit
granted to the employees under existing laws, agreement and OR, Book III Rule VI, Sec. 5 Integration of service charges —
voluntary employer practice. In case the service charges is abolished the share of covered
employees shall be considered integrated in their wages. The
Sec. 7 This rule shall be without prejudice to existing, future basis of the amount to be integrated shall be the average
collective bargaining agreements. Nothing in this rule shall be monthly share of each employee for the past twelve (12) months
construed to justify the reduction or diminution of any benefit immediately preceding the abolition of withdrawal of such
being enjoyed by any employee at the time of effectivity of this charges.
rule.
Phil. Hoteliers Inc. v. NUWHRAIN-APL-IUF
1. Covered establishments FACTS:
1. Wage Order No. 9 (WO 9) was promulgated in NCR and took
OR, Book III Rule VI Sec. 1 Coverage — This rule shall apply effect on Nov. 5, 2001.
only to establishments collecting service charges such as hotels, - It provides that all private sector workers and employees
restaurants, lodging houses, night clubs, cocktail lounge, in the NCR who receive daily wage rates of P250 up to
massage clinics, bars, casinos and gambling houses, and similar P290 shall receive an emergency cost of living allowance
enterprises, including those entities operating primarily as (ECOLA) in the amount of P30 per day, payable in two
private subsidiaries of the Government. tranches:
2. Coverage HELD:
1. Court held: YES, Fact that PFDA is a GOCC is of
-‐ All ER, no one is exempted no moment
-‐ Employees = All employed by employers, except to farm - While PFDA is GOCC, the guards who would be affected
tenants/lessees, DW engaged in needle work or in any by the Wage Order are not employees of the petitioner.
cottage industry - The contract of services explicitly states that the security
-‐ All EE except guards are not considered employees of the petitioner.
e. Farm tenancy or leasehold - There being no employer-employee relationship between
f. Domestic service including drivers PFDA and the security guards, the jurisdiction of the CSC
g. Needlework or in any duly registered cottage industry may not be invoked.
h. Workers in any duly registered cooperative 2. Court held: YES
recommended by the Bureau of Cooperative - The contract entered into by the petitioner which is merely
Development and approved by Sec. of Labor job contracting makes the petitioner an indirect employer.
- Notwithstanding that PFDA is a GOCC, its liabilities, which
Philippine Fisheries Development Authority v. NLRC (1992) are joint and solidary with that of the contractor, are
FACTS: provided in Art. 106, 107, and 109 of LC.
1. Petitioner PFDA is a GOCC created by P.D. No. 997 - This places the petitioner’s liabilities under the scope of the
2. Nov. 11, 1985 – it entered into a contract with the Odin NLRC.
Security Agency for security services of its Iloilo Fishing Port - Term “employer” in Book Three, Title II on Wages
Complex. specifically provides that even GOCCs may fall within its
3. Oct. 24, 1987 – during the effectivity of said Security definition.
Agreement, private respondent Odin Security Agency 3. Court held: EQUAL SHARE
requested petitioner to adjust the contract rate in view of - In job contracting, PFDA as principal is jointly and severally
the implementation of Wage Order No. 6 which took effect liable with the contractor for the payment of unpaid wages,
on Nov. 1, 1984. pursuant to Art. 106, 107, and 109 of the Labor Code.
4. Wage Order No. 6 provides that ‘in cases of contracts for - In the case of Eagle Security v. NLRC, Court held that
security, the increases in the minimum wage and allowance Wage Orders are explicit that payment of the increases are
rates of the workers shall be borne by the principal or client ‘to be borne’ by the principal or client. However, the
of the construction/service contractor and the contract shall security guard’s primary recourse for the payment of the
be deemed amended accordingly. increase is with their direct employer. Wage Orders then
5. Sec. 7 of the Security Agreement calls for an automatic requires the amendment of the contract as to the
escalation of the rate per guard in case of wage increase. consideration to cover the service contractor’s payment of
6. Petitioner ignored these requests. Respondent filed with the increases mandated. In the end, therefore, ultimate
the Office of the Sub-Regional Arbiter a complaint for liability for the payment of the increases rests
unpaid amount of re-adjustment rate under Wage Order with the principal.
No.6 - (NOTE: VERY IMPORTANT!!!) HOWEVER, Court
7. PFDA filed a motion to dismiss, on jurisdictional grounds. took note of the fact that respondent entered into the
8. LA: Granted Motion to Dismiss, stating that the petitioner, contract when Wage Order No. 6 had already been in
being a GOCC, would place it under the scope and force, but the rates of the security guards as stipulated in
jurisdiction of the Civil Service Commission and not within the contract did not consider the increases in the minimum
the ambit of the NLRC. wage the Wage Order mandated. It was only after two
9. NLRC: Reversed and Set Aside LA decision. Ruled for years that the Agency has asked for an adjustment in the
private respondents contract price. They are equally guilty as the petitioner
when in entered into the contract without considering
ISSUES: Wage Order No. 6.
1. WON NLRC had jurisdiction (YES) - Evidently, what the Agency wanted, by filing the complaint
2. WON PFDA, as an indirect employer, is bound by the in its own behalf and in behalf of the security guards, is to
rulings of the NLRC (YES) exculpate itself from liability.
- Court held that respondents could only claim
reimbursement against the petitioner for only one-half of
(iv) P2,183.33 — where the workers and employees do not work Art. 97
and are not considered paid on Saturdays and Sundays or rest (f). "Wage" paid to any employee shall mean the remuneration
days. or earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, task,
c) Workers and employees who, prior to July 1, 1989, were piece, or commission basis, or other method of calculating the
receiving a basic wage of more than P100.00 per day or its same, which is payable by an employer to an employee under a
monthly equivalent, are not by law entitled to the wage increase written or unwritten contract of employment for work done or to
provided under the Act. They may however, receive wage be done, or for services rendered or to be rendered and
increases through the correction of wage distortions in includes the fair and reasonable value, as determined by the
accordance with Section 16, Chapter I of these Rules. Secretary of Labor and Employment, of board, lodging, or other
facilities customarily furnished by the employer to the employee.
Sec. 7 Basis of Minimum Wages Rates — The statutory
minimum wage rules prescribed under the Act shall be for the "Fair and reasonable value" shall not include any profit to the
normal working hours, which shall not exceed eight hours work a employer, or to any person affiliated with the employer.
day.
3. c. Exemptions
-‐ Minimum wage earners in the private sector Wage Order No. NCR-17, Sec. 7 Exemptions – Upon
-‐ Regardless of position, designation or status of employment application and as determined by the Board, based on
and irrespective of the method by which they are paid. documentation and other requirements in accordance with
-‐ BUT does not cover: applicable rules and regulation issued by the NWPC, the
1. Domestic workers following may be exempted from the applicability of this Order:
2. Personal services
3. Workers of duly registered BMBEs 1. Distressed Establishments
B2017 Herrera-Lim | Husmillo | Santos “FRONNIE NOTES”
LAW 113 LABOR | PROF. DAWAY 198
2. Retail/Service Establishment Regularly Employing Not More
Than 10 Workers ISSUE:
3. Establishments whose Total Assets including those arising 1. WON commissions are included in determining compliance
from loans but exclusive of the land on which the particular with the minimum wage requirement (YES)
business entity’s office, plant and equipment are situated, are 2. WON Iran complied with twin notice requirement in
not more than P3 Million; and, dismissing employees (NO)
4. Establishments Adversely Affected by Natural Calamities. 3. WON vouchers of 13th month pay should be taken into
account although introduced only on appeal (YES)
3. d. Determination of compliance with minimum wage
RATIO:
Iran v. NLRC (1998) 1. Yes, commissions are included in determining
FACTS: compliance with minimum wage requirements.
1. Iran is engaged in softdrinks merchandising and distribution - LC 97 (f) explicitly includes commissions as part of
in Mandaue, Cebu. He employed Godofredo, Moreno, wages.
Celso, Fernando as truck drivers who double as salesmen - While commissions are, indeed, incentives or forms of
and Pepito, Aplonilario, Jesus, Edwin, and Diosdado as encouragement to inspire employees to put a little
truck helpers who likewise assisted in the delivery. As part of more industry on the jobs particularly assigned to
their compensation, they received commissions per case of them, still these commissions are direct remunerations
softdrinks sold. for services rendered.
- Salesmen: o Commissions have been defined as the
o Ten centavos per case of regular softdrinks recompense, compensation or reward of an
o Twelve centavos per case of family size softdrinks agent, salesman, executor, trustee, receiver,
- Truck helpers factor, broker or bailee, when the same is
o Eight centavos per case of regular softdrinks calculated as a percentage on the amount of his
o Ten centavos per case of family size softdrinks transactions or on the profit to the principal.
2. In June 1991, Iran discovered cash shortages and o The nature of the work of a salesman and the
irregularities while conducting an audit. In a return-to-work reason for such type of remuneration for services
Order, he requested Godofredo et al. to report to work rendered demonstrate clearly that commissions
every day, but not allowed to go on their respective routes. are part of a salesman’s wage or salary.
They stopped reporting for work so Iran concluded they - Thus, the commissions earned by Godofredo et al. in
abandoned their employment. Iran terminated their services selling softdrinks constitute part of the compensation
and subsequently filed complaint for estafa. or remuneration paid to drivers/salesmen and truck
3. December 5, 1991, Godofredo et al. filed complaints against helpers for serving as such, and hence, must be
Iran for illegal dismissal, illegal deduction, underpayment of considered part of the wages paid them
wages, premium pay for holiday and rest day, holiday pay, - There is no law mandating that commissions be paid
service incentive leave pay, 13th month pay, allowances, only after the minimum wage has been paid to the
separation pay, recovery of cash bond, damages and employee.
attorney’s fees. - The establishment of a minimum wage only sets a
floor below which an employee’s remuneration cannot
LA: Iran validly terminated them, there being just cause for fall, not that commissions are excluded from wages in
dismissal. BUT Iran did not comply with minimum wage determining compliance with the minimum wage law.
requirements and failed to pay 13th month pay. Total award: - Philippine Agricultural Commercial and Industrial
P81k. Workers Union v NLRC: drivers and conductors who
are compensated purely on a commission basis are
4. Both parties appealed to NLRC. automatically entitled to the basic minimum pay
- Iran: presented for the first time, vouchers evidencing mandated by law should said commissions be less
payment of 13th month pay signed by Godofredo et al. than their basic minimum for eight hours work. It can,
- Godofredo et al.: they were illegally dismissed; thus, be inferred that were said commissions equal to
contested mathematical errors in computing Jesus’ or even exceed the minimum wage, the employer
wage differentials need not pay, in addition, the basic minimum pay
prescribed by law
NLRC: affirmed validity of dismissal, but found that it did not 2. No. In terminating employees, the employer must
comply with procedural requirements for dismissing employees; furnish the worker with 2 written notices: (a) a
corrected computation of Jesus’ wage differentials notice which apprises the employee of the
- “Revised Guidelines on the Implementation of the 13th § all allowances and monetary benefits which are not
Month Pay Law promulgated by then Labor Secretary considered or integrated as part of the regular
Franklin Drilon” basic salary of the employee
o Under a later set of Supplementary IRR of PD 851,
5. 13th Month Pay for Certain Types of Employees. overtime pay, earnings and other remunerations
are excluded as part of the basic salary in the
(a) Employees Paid by Results. — Employees who are computation of 13th month pay
paid on piece work basis are by law entitled to the 13th
- The exclusion of these remunerations indicate the intention
month pay.
to strip basic salary of other payments which are properly
considered as fringe benefits
Employees who are paid a fixed or guaranteed wage
plus commission are also entitled to the mandated 13th - The all-embracing “earnings and other remunerations”
month pay based on their total earnings during the which are deemed not part of the basic salary (in the
calendar year, i.e., on both their fixed or guaranteed Supplementary IRR) includes payments for sick, vacation, or
wage and commission. maternity leaves, premium for works performed on rest days
and special holidays, pays for regular holidays and night
ISSUE: differentials
WON respondent labor officials in computing said benefit,
o Overtime pay is an additional compensation other than
committed "grave abuse of discretion amounting to lack of
jurisdiction," by giving effect to Section 5 of the Revised and added to the regular wage or basic salary
Guidelines on the implementation of the Thirteenth Month Pay - In remunerative schemes consisting of a fixed wage plus
(YES) commission, the fixed wage is patently the “basic salary” for
this is what the employee receives for a standard work
RATIO: period. Commissions are given for extra efforts exerted in
YES, there was a grave abuse of discretion. consummating sales or other related transactions
2. a. National Wages and Productivity Commission -‐ Within 30 days of the conclusion of the last hearing, Board
shall decide and issue a WO
NATIONAL WAGES AND PRODUCTIVITY -‐ Will last for 12 months and no petition for wage increase
COMMISSION shall be entertained within this 12 months
Designation Attached to DOLE for policy and program -‐ WO shall take effect 15 days after its publication in at least 1
coordination newspaper of general circulation
Consultative and advisory body to the -‐ Board shall prepare the IRR not later than 10 days of WO's
President and Congress issuance. This shall be approved by the Sec. of Labor and
Policy and guideline formulation for wages Employment
Minimum wage and productivity measures
creation Appeals for review of WO
Review of regional wages 1. Non-conformity with prescribed guidelines and/or
Undertake studies, researches and surveys procedure
necessary for the attainment of its functions 2. Questions of law
and objectives 3. Grave abuse of discretion
Review plans and programs of the Regional
Powers and 4. a. Methods of Fixing
Tripartite Wages and Productivity Boards
functions
Technical and administrative supervision over
4. a.i. Floor wage method
the Regional Tripartite Wages and Productivity
Boards
Floor-wage method
To call, from time to time, a national tripartite
-‐ Fixing a determinate amount to be added to the prevailing
conference of representatives of government,
statutory minimum wage rates (e.g. setting P25 increase for
workers and employers for the consideration
min. wage rate)
of measures to promote wage rationalization
and productivity
4. a.ii. Salary-ceiling method
Other powers and functions necessary to
implement objectives and goals
Salary-ceiling method
Ex-officio chair: Secretary of Labor
-‐ Wage adjustment to be applied to EEs receiving a certain
Ex-officio vice chair: Director General of NEDA
Composition denominated salary or workers being paid more than
2 members each from workers and employers
existing min. wage (e.g. WO granting P25increase to those
sector (appointed by President)
earning up to P250)
Members’ term 5 years
FLOOR WAGE METHOD VS. SALARY CEILING
METHOD
2. b. Regional Tripartite Wages and Productivity Board -‐ Floor wage method -add to the previous minimum wage.
E.g. P456 + P100 = P556
3. Standards/Criteria for Minimum Wage Fixing -‐ Salary-ceiling method -all wages under a certain wage
increases to that wage. E.g. all wages under P556 must be
1. The demand for living wages; increased to P556
2. Wage adjustment vis-à-vis the consumer price index;
3. The cost of living and changes or increases therein; WHEN MAY THE REGIONAL BOARD MAKE A
4. The needs of workers and their families; DETERMINATION TO INCREASE THE WAGES?
5. The need to induce industries to invest in the countryside; -‐ Upon demand, the board shall investigate existing socio-
6. Improvements in standards of living; economic realities
7. The prevailing wage levels; -‐ Therefore, it is NOT AUTOMATIC
8. Fair return of the capital invested and capacity to pay of
employers; 4. b. Validity
9. Effects on employment generation and family income; and
10. The equitable distribution of income and wealth along the 4. c. Wage Distortion
imperatives of economic and social development
B2017 Herrera-Lim | Husmillo | Santos “FRONNIE NOTES”
LAW 113 LABOR | PROF. DAWAY 210
because of special circumstances, as specified
“Wage Distortion” = A situation where an increase in the by SOL or the CBA
wage rates will eliminate or severely diminish the differences Promissory notes
between and among wage groups in an establishment Vouchers
Coupons
Four elements of wage distortion: Tokens
1. An existing hierarchy of positions with corresponding salary Not allowed
Tickets
rates Chits, or
2. A significant change in the salary rate of a lower pay class Any object other than legal tender, even when
without a concomitant increase in the salary rate of a higher expressly requested by the employee
one
Bank/Facility for encashment within 1km radius
3. The elimination of the distinction between the two levels
from workplace
4. The existence of the distortion in the same region of the
Employer did not receive any pecuniary benefit
country.
because of said arrangement
Conditions for
The employees are given reasonable time
For Organized Establishments, steps for fixing wage payment
during banking hours to withdraw their wages
distortion: through check
(compensable hours, if during working hours)
5. Bargaining/Negotiations
The payment by check is with the written
6. Grievance Machineries
consent of the employees concerned, in the
7. Voluntary Arbitration
absence of a CBA
1. Prohibition against interference in disposal of wages Attorney's fees in any judicial or administrative proceedings for
the recovery of wages shall not exceed 10% of the amount
-‐ The employer should not interfere with the employee’s awarded.
disposal of wages, nor oblige him to patronize a store or
avail services. 4. Prohibition against withholding of wages
Exempted employers
6. Thirteenth Month Pay – Pres. Decree No. 851 -‐ The Government and GOCCs, except those corporations
operating essentially as private subsidiaries
a. History of the Law -‐ Employers already paying their employees a 13th month pay
or more in a calendar year or its equivalent at the time of
See Dentech Manufacturing v. NLRC. issuance
-‐ PD 851 (13th Month Pay Law) was signed into law in 1975 by -‐ Employers of those who are paid on purely commission,
President Ferdinand Marcos boundary, or task basis, and those who are paid a fixed
2. Coverage
7. Bonus
3. Equal treatment before the law
COMMISSION PRODUCTIVITY BONUS
Paid upon the specific results Generally tied to the 4. Night Work
achieved employee productivity, or capacity for
revenue production, of a 5. Prohibited Acts
corporation
A percentage of the sales Closely resembles profit- 5. a. Discrimination
closed by the employee and sharing
operates as an integral part 5. b. Stipulation against marriage
the basic pay
Intimately related to or directly No clear direct or necessary 5. c. Discharge to prevent enjoyment of benefits
proportional to the extent or relation to the amount of work
energy of an employee's actually done by each 5. d. Discharge on account of pregnancy
endeavors individual employee
Demandable once earned Not a demandable and 5. e. Discharge on account of having filed a complaint or having
enforceable obligation testified or being about to testify under this Code
Mandatory once earned; Management prerogative
considered as wages 5. f. Expulsion of women faculty/female student due to
pregnancy outside of marriage
Conditioned on contract on Conditioned on the profit or
commission; automatic amount of productivity
6. Facilities
increment to each unit of work achieved and management
rendered by salesmen decision
7. Special Women Workers
Included in ‘basic salary’ for Not included in ‘basic salary’
13th month pay computation for 13 month pay computation
8. Maternity Leave
a. Nature
9. Sexual Harassment
3. Coverage/definition
-‐ If it is made part of the wages and salary
-‐ If it was included in the CBA without condition or
3. a. Child
qualification on how it is to be earned
-‐ If it forms part of the company practice, in support of the
3. b. Child labor
-‐ Non-Diminution of wages principle
3. c. Working child
8. W orking Conditions for Special Group of
W orkers 4. Employment of Children
6. Prohibitions Against Worst Forms of Child Labor 4. m. Social and other benefits
4. b. Board, lodging and medical attendance 6. b. Deposits from which deductions shall be made
4. e. Right to education and training 6. e. Charging b the original employer for temporary domestic
service
4. f. Employment contract
6. f. Deductions other than those mandated by law
4. g. Employment age
6. g. Payment in forms other than cash
4. h. Health and safety
6. h. Interference in the disposal of wages
4. i. Daily rest period
6. i. Withholding of wages
4. j. Weekly rest period
7. Remedies
4. k. Compensation
7. a. Abused or exploited domestic worker
4. k.1. Minimum wage
7. b. Mechanism for settlement of disputes
4. k.2. Time, form of payment/person to pay
7. b.1. Jurisdiction of the DOLE Regional Office
4. k.3. Pay slip
7. b.2. Jurisdiction of regular courts
4. k.4. Thirteenth month pay
7. Prohibitions
8. Enforcement
E. NIGHT WORKERS
1. Coverage
2. Exception
3. Definition
4. Rights