The Labor Code of the Philippines stands as the law governing employment practices and labor relations in the

Philippines. It was enacted on Labor day of 1974 by President Ferdinand Marcos, in the exercise of his then extant legislative powers. Features The Labor Code prescribes the rules for hiring and termination of private employees; the conditions of work including maximum work hours and overtime; employee benefits such as holiday pay, thirteenth month pay and retirement pay; and the guidelines in the organization and membership in labor unions as well as in collective bargaining. The Labor Code contains several provisions which are beneficial to labor. It prohibits termination from employment of Private employees except for just or authorized causes as prescribed in Article 282 to 284 of the Code. The right to trade union is expressly recognized, as is the right of a union to insist on a closed shop. Strikes are also authorized for as long as they comply with the strict requirements under the Code, and workers who organize or participate in illegal strikes may be subject to dismissal. Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation of law, especially the Labor Code, will be resolved in favor of labor and against management. Labor Code in the Philippines Pre-Employment Policies

Minimum Employable Age The minimum age for employment is 15 years old and below that age is not allowed. Persons of age 15 to 18 can be employed given that they work in non-hazardous environments. Overseas Employment As for overseas employment of Filipinos, foreign employers are not allowed to directly hire Philippine nationals except through board and entities authorized by the Secretary of Labor. Travel agencies also cannot transact or help in any transactions for the employment or placement of Filipino workers abroad. Once Filipinos have a job in a foreign country, they are required to remit or send a portion of their income to their families, dependents, and/or beneficiaries in the Philippines. Regulation on Conditions of Employment

Minimum Wage Rate The minimum wage rate for Non-Agriculture employees established under Wage Order No. NCR 15 is P404 per day, but in May 9, 2011, a (cost of living allowance) of P22 per day was added to P404 wage, making the minimum wage P426 as of the current date. COLA was also added to the previous P367 minimum wage for the following sectors: Agriculture, Private Hospitals (with bed capacity of 100 or less), and manufacturing establishments (with less than 10 workers), leaving the sectors with P389 as minimum wage. Regular Work Hours and Rest Periods The Labor Code set the regular hours of work per day to be no more than 8 hours and not exceeding 5 days a week. Health personnel such as nurses, pharmacists, midwives, paramedical technicians, physicians, and more, are exempted to the 5 days working limit if their services are deemed necessary, but with an additional compensation of 30% of their regular wage rate. Short duration of rest periods are to be included in the working hours except meal times which can be of longer duration. Employers are to give no less than 1 hour of meal time per day, but are not accounted for the working periods. Rest Days All employees have the right to have a 24 consecutive hours of rest day after every 6 days of work. Employers are responsible for determining and scheduling the rest day of employees except only if the employee prefers a different day based on religious grounds. However, the employer may require an employee to work during his/her rest day in cases of

emergencies, special circumstances at work in which employees are seriously needed, to prevent losses or damage to any goods or to the employer, and other cases that have reasonable grounds. Nightshift Differential and Overtime Employees are also given additional wages for working in night shifts. The night shift starts from 10 oclock in the evening until 6 oclock in the morning, and employees will receive 10% more of his/her regular wage rate. Overtime work for employees (beyond 8 hours) is allowed and workers shall be paid with his/her regular wage plus an additional 25% of the regular wage per hour worked or 30% during holidays or rest days. Household helpers Household helpers, or maids, are common in the Philippines. Household helpers are those that deliver services at the employers home, attending to the employers instructions and convenience. The minimum wage of household helpers is P800 per month for some cities in metro manila, while a lower wage is paid to those outside of metro manila. However, most household helpers receive more than the minimum wage; employers usually give wages ranging from P2,500 and above per month. On top of that, employers are required to provide food, sanitary lodging, and a just treatment to the household helper. Post-Employment

Termination by Employer The employer has the right to terminate an employee due to the following reasons: serious misconduct or disobedience to the employer, neglect of duties or commission of a crime by the employee, and such causes the gives the employer a just case to terminate the service of the employer. Retirement The retirement age for an employee depends on the employment contract. Upon retirement, the retired employee should be given his/her benefits according to the agreement or contract between the employer and the employee. However, if there is no existing retirement plan or agreement for the employee, he/she may retire at the age of 60, given that he/she has served the employer for 5 years, and shall be given a retirement pay of at least half a months salary for every year of service ( 6 months of work given is considered as 1 whole year for the retirement pay). Elements of employer-employee relationship Elements of control and supervision Power of dismissal Payment of wages Selection and engagement of employees.

The following elements must be present in order to determine the existence of an employer-employee relationship:

1.) Power to hire 2.) Power to fire 3.) Payment of salaries/wages 4.) Power of control

Of the above four powers, the fourth one is the most important because it can negate the other three. There is no employer-employee relationship if the following are present:

1.) The person works at his own pleasure 2.) He has no set time for work 3.) He decides for himself what is to be done 4.) He is paid according to the results of his work

There is no employer-employee relationship if the above are present because there is no power of control.