COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 REPUBLIC ACT NO. 6657, as amended by R.A. 9700 (CARPER) DEFINITION OF TERMS.

(a) Agrarian Reform means the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm workers who are landless, irrespective of tenurial arrangement. (b) Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of the soil, planting of crops, growing of fruit trees, including the harvesting of such farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by persons whether natural or juridical. (As amended by R. A. 7881) (c) Agricultural Land refers to land devoted to agricultural activity as defined in this Act and not classified as mineral, forest, residential, commercial or industrial land. (d) Idle or Abandoned Land refers to any agricultural land not cultivated, tilled or developed to produce any crop nor devoted to any specific economic purpose continuously for a period of three (3) years immediately prior to the receipt of notice of acquisition by the government as provided under this Act, but does not include land that has become permanently or regularly devoted to non-agricultural purposes. It does not include land which has become unproductive by reason of force majeure or any other fortuitous event: Provided, that prior to such event, such land was previously used for agricultural or other economic purposes. (e) Farmer refers to a natural person whose primary livelihood is cultivation of land or the production of agricultural crops, livestock and/or fisheries either by himself/herself, or primarily with the assistance of his/her immediate farm household, whether the land is owned by him/her, or by another person under a leasehold or share tenancy agreement or arrangement with the owner thereof. (f) Farmworker is a natural person who renders service for value as an employee or laborer in an agricultural enterprise or farm regardless of whether his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. (g) Regular Farmworker is a natural person who is employed on a permanent basis by an agricultural enterprise or farm. (h) Seasonal Farmworker is a natural person who is employed on a recurrent, periodic or intermittent basis by an agricultural enterprise or farm, whether as a permanent or a nonpermanent laborer, such as "dumaan", "sacada", and the like. (i) Cooperatives shall refer to organizations composed primarily of small agricultural producers, farmers, farm workers, or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human, technological, financial or other economic resources, and operated on the principle of one member, one vote. A juridical person may be a member of a cooperative, with the same rights and duties as a natural person. II. COVERAGE A. Scope. - The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands as provided in Proclamation No . 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture: Provided, That landholdings of landowners with a total area of five (5) hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries. "More specifically, the following lands are covered by the CARP: "(a) All alienable and disposable lands of the public domain devoted to or suitable for agriculture. No reclassification of forest or mineral lands to agricultural lands shall be undertaken after the approval of this Act until Congress, taking into account ecological, I.

developmental and equity considerations, shall have determined by law, the specific limits of the public domain; "(b) All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph; "(c) All other lands owned by the Government devoted to or suitable for agriculture; and "(d) All private lands de voted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon. (Sec.4) B. Retention Limits. Under the CARP the following areas may be retained: 1. Five (5) hectares for the Landowner. 2. Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: a. that he is at least fifteen (15) years of age; b. that he is actually tilling the land or directly managing the farm. - The right to choose the area to be retained, which shall be compact or contiguous, shall pertain, to the landowner. (Sec. 6, RA 6657) C. Exception to the Retention Limits "SEC. 6-A. Exception to Retention Limits. - Provincial, city and municipal government ,units acquiring private agricultural lands by expropriation or other modes of acquisition to be used for actual, direct and exclusive public purposes, such as roads and bridges, public markets, school sites, resettlement sites, local government facilities, public parks and barangay plazas or squares, consistent with the approved local comprehensive land use plan, shall not be subject to the five (5)-hectare retention limit under this Section and Sections 70 and 73(a) of Republic Act No. 6657, as amended: Provided, That lands subject to CARP shall first undergo the land acquisition and distribution process of the program: Provided, further, That when these lands have been subjected to expropriation, the agrarian reform beneficiaries therein shall be paid just compensation." III. EXEMPTIONS AND EXCLUSIONS. (a) Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves shall be exempt from the coverage of this Act. (b) Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of this Act. (c) Lands actually, directly and exclusively used and found to be necessary for national defense, school sites and campuses, including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production center, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those already developed, shall be exempt from the coverage of this Act.(As amended by R. A. 7881) IV. LAND ACQUISITION A. Procedure for Acquisition of Private Lands.- For purposes of acquisition of private lands, the following procedures shall be followed: 1. After having identified the land, the landowners and the beneficiaries, the DAR (Department of Agrarian Reform) shall send its notice to acquire the land from the owners and shall make an offer to pay.

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3.

4.

5.

6. V.

Within thirty (30) days from the date of receipt of written notice by personal delivery or registered mail, the landowner, his administrator or representative shall inform the DAR of his acceptance or rejection of the offer. If the landowner accepts the offer of the DAR, the LBP (Land Bank of the Philippines) shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in favor of the Government and surrenders the Certificate of Title. In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation of the land by requiring the landowner, the LBP and other interested parties to summit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of the notice. Upon receipt by the landowner of the corresponding payment or in case of rejection or no response from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation in cash or LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name - of the Republic of the Philippines. The DAR shall thereafter proceed with the redistrib ution of the land to the qualified beneficiaries. Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation.

COMPENSATION A. Determination of Just Compensation. - In computing the just compensation, the following factors or determinants shall be considered: 1. the cost of acquisition of the land; 2. current value of like properties; 3. its nature, actual use and income; 4. the sworn valuation by the owner; 5. the tax declarations, and the assessment made by government assessors; 6. the social and economic benefits contributed; 7. non-payment of taxes or loans secured from any government financing institution on the said land. VI. LAND REDISTRIBUTION A. Section 22. Qualified Beneficiaries. - The lands covered by the CARP shall be distributed as much as pos sible to landless residents of the same barangay, or in the absence thereof, landless residents of the same municipality in the following order of priority: 1. agricultural lessees and share tenants; 2. regular farm workers; 3. seasonal farm workers; 4. other farm workers; 5. actual tillers or occupants of public lands; 6. collective or cooperatives of the above beneficiaries; and 7. others directly working on the land. "SEC. 22-A. Order of Priority. - A landholding of a landowner shall be distributed first to qualified beneficiaries under Section 22, subparagraphs (a) and (b) of that same landholding up to a maximum of three (3) hectares each. Only when these beneficiaries have

all received three (3) hectares each, shall the remaining portion of the landholding, if any, be distributed to other beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g)." B. Distribution Limit. - No qualified beneficiary may own more than three (3) hectares of agricultural land. C. Transferability of Awarded Lands. (*as amended by RA 9700) "SEC. 27. Transferability of Awarded Lands. - Lands acquired by beneficiaries under this Act or other agrarian reform laws shall not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries through the DAR for a period of ten (10) years: Provided, however, That the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two (2) years. Due notice of the availability of the land shall be given by the LBP to the BARC of the barangay where the land is situated. The PARCCOM, as herein provided, shall, in turn, be given due notice thereof by the BARC. "The title of the land awarded under the agrarian reform must indicate that it is an emancipation patent or a certificate of land ownership award and the subsequent transfer title must also indicate that it is an emancipation patent or a certificate of land ownership award. "If the land has not yet been fully paid by the beneficiary, the rights to the land may be transferred or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land himself/herself. Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice of the availability of the land in the manner specified in the immediately preceding paragraph. "In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sump for the amounts the latter has already paid, together with the value of improvements he/she has made on the land."

ECONOMICS DEFINITION It is a branch of social science that deals with the study of the production, distribution, exchange and consumption of goods and services. II. FOUR ECONOMIC ACTIVITIES A. B. C. D. III. Production- the manufacture of various goods and services. Distribution- the allocation of said goods and services Exchange- the selling of goods and services Consumption- actual use of the goods and services. I.

FOUR KINDS OF NEEDS

The questions on what to produce?, how to produce?, and for whom to produce? are very important in the economic activity of production. Thus, in order to answer these questions, the producers or manufacturers must first consider the different kinds of needs.

A. Basic or Fundamental Needs- these are the needs we cannot live without, i.e. food, clothing and shelter. B. Essential Needs- these are needs that we can live without, i.e. refrigerator and telephone. These, however, make life more convenient and easier. C. Luxurious Needs- these are the non-basic and unnecessary things that we do not actually need but are nevertheless produced to provide to some a lavish lifestyle. D. Created Needs- these are the invented needs that also make life more convenient, i.e. rice dispenser. IV. FOUR FACTORS OF PRODUCTION

In order to have effective production of goods and services, the following factors must be present: A. Land- the place where the production is to take place B. Labor- manpower or human resources C. Capital- which may be in the form of money or property D. Entrepreneurship- the one who creates the business and refers to the different business entities. V. FOUR BUSINESS ENTITIES A. Single or Sole Proprietorship- type of business owned by only one person. B. Partnership- as provided by Article 1767 of the Civil Code of the Philippines: By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves. C. Corporation (private)- an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. (Corporation Code of the Philippines) D. Cooperatives- shall refer to organizations composed primarily of small individual producers or entities who voluntarily organize themselves for the purpose of pooling land, human, technological, financial or other economic resources, and operated on the principle of one member, one vote. DISTINCTIONS BETWEEN PARTNERSHIP AND CORPORATION I. Partnership- definition

Article 1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves. Two or more persons may also form a partnership for the exercise of a profession. II. Characteristics A. Consensual- the contract is perfected by mere consent B. Nominate- it is designated by a particular name C. Bilateral or multilateral- it is entered into by two or more persons D. Principal- its existence does not depend on the life of another contract E. There must be a contribution of money, property or industry to a common fund F. Object must be a lawful one

G. There must be an intention of dividing the profit among the partners since the firm is for the common benefit or interest of the partners H. A new personality- the firm- must arise, distinct and separate from the personality of each partner III. Separate and Distinct Personality Article 1768. The partnership has a juridical personality separate and distinct from that of each of the partners, even in case of failure to comply with the requirements of article 1772, first paragraph. A. Consequences of the Partnership being a Juridical Entity 1. Its juridical personality is separate and distinct from the partners. Ex. In the partnership of Cruz and Santos, there are three persons: Cruz, Santos and Cruz and Santos. 2. The partnership can in general: a) acquire and possess property of all kinds; b) incur obligations; c) bring civil and criminal actions; d) can be adjudged insolvent even if the partners are all individually solvent. 3. Unless personally sued, a partner has no right to make a separate appearance in court if the partnership being sued is already represented. B. Effect of non-compliance with Art. 1772 Every contract of partnership having a capital of three thousand pesos or more, in money or property, shall appear in a public instrument, which must be recorded in the Office of the Securities and Exchange Commission. Failure to comply with the requirements of the preceding paragraph shall not affect the liability of the partnership and the members thereof to third persons. *** However, failure to comply with the above requirement does not, in any way, affect the juridical personality of the partnership. III. Rules for Determining Existence of Partnership

Article 1769.-In determining whether a partnership exists, these rules shall apply: (1) Except as provided by article 1825, persons who are not partners as to each other are not partners as to third persons; (2) Co-ownership or co-possession does not of itself establish a partnership, whether such-co-owners or co-possessors do or do not share any profits made by the use of the property; (3) The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived; (4) The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but no such inference shall be drawn if such profits were received in payment:

(a) As a debt by installments or otherwise; (b) As wages of an employee or rent to a landlord; (c) As an annuity to a widow or representative of a deceased partner; (d) As interest on a loan, though the amount of payment vary with the profits of the business; (e) As the consideration for the sale of a goodwill of a business or other property by installments or otherwise. II. CORPORATION A. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. * This definition refers to private corporations only as compared to public corporations. B. Corporation as an artificial person- a corporation is an artificial being with personality separate and distinct from its individual members or stockholders. This is called the Theory of Corporate Fiction or Veil of Corporate Entity . The stockholders may have created or composed the corporation, but they are not the corporation. The consequences of this principle are: 1. It may acquire and possess property of all kinds, incur obligations and may file civil or criminal actions like a natural person; 2. The properties acquired are owned by the corporation and not the members or stockholders; 3. Any contract entered into by the corporate officers and agents are contracts for and in behalf of the corporation. The personal liabilities of the individual members or stockholders do not make the corporation liable; 4. Tax exemption granted to a corporation cannot be extended to include the dividends paid by such corporations to its stockholders; 5. The corporation has no personality to bring an action for and in behalf of the stockholders or members for cases personal to them; 6. A corporation that has a good reputation if besmirched, may be a ground for recovery of moral damages; 7. The personality of the corporation is not affected by the changes in the membership or stockholders. * This principle, however, is not absolute because being a mere creation of law, it can exist only for lawful purposes. If the corporation is being used to cloak or cover fraud or illegal activities, then this fiction will be disregarded and the persons composing it will be treated as identical. This is what is called as Piercing the Veil of Corporate Fiction/Entity or the Doctrine of Corporate Alter Ego. C. Corporation Distinguished from Partnership PARTNERSHIP CORPORATION Manner of Creation Created by mere Created by operation

Number of Persons Who Created the Entity Commencement of Juridical Personality Powers

Management

Effect of Mismanagement Right of Succession Extent of Liability to Third Persons Transferability of Interest

Term Firm Name

Dissolution Laws that govern

agreement of the of law. parties. May be created by Must be created by at only two persons. least five (5) incorporators except a Corporation Sole. From the execution of From the date of the contract of issuance of Articles of partnership. Incorporation by the SEC. May exercise powers Can only exercise as authorized by the powers granted to it partners provided it is by law or those not contrary to law, incidental to its morals, good customs, existence. public order or public policy. When management is Given to the Board of not agreed upon, Directors or Trustees. every partner is an agent of the partnership. A partner may sue A suit against a another partner who member of the board mismanages. must be in the name of the corporation. No right succession. Has the right of succession. All partners are liable Only the corporation is personally except a liable limited partner. Transfer of interest to A stockholder has the another does not right to transfer his make the transferee a share without the partner. The consent consent of the other of all partners is stockholders. needed. May be established for Term of 50 yrs. and any period of time renewable for another stipulated. 50 yrs. A limited partnership May adopt any is required by law to corporate name put Ltd. to its name. provided it is not identical or deceptively similar to any other registered name. May be dissolved any Can be dissolved only time at the will of the with the consent of partners. the State. The Civil Code on B.P. Blg. 68 otherwise Partnership known as the

Corporation Code the Philippines WORKERS RIGHTS AND INCENTIVES

of

I. HOURS OF WORK A. Normal hours of work of any employee shall not exceed eight (8) hours a day. B. Hours worked. Hours worked shall include: 1. all time during which an employee is required to be on duty or to be at a prescribed workplace; and 2. all time during which an employee is suffered or permitted to work. *Rest periods of short duration during working hours shall be counted as hours worked. C. Meal periods. It shall be the duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals. Ex. Lunch or dinner. II. WEEKLY REST PERIOD OR REST DAY A. Duty of the Employer. It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days. B. Schedule of Rest Day. The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and to such rules and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds. III. WAGES OR SALARIES: RATES AND MANNER OF PAYMENT A. WAGE- means the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered and includes the fair and reasonable value. B. Minimum Wage Rates- all workers are entitled to be paid at least the minimum wage for one work day (8 hrs.). In the National Capital Region, the minimum wage is set at P 426.00 per 8 hrs. of work. There are various rates in the Philippines depending on the region. C. Forms of payment. Wage payments shall be made either in cash or checks. No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee.

D. Time of payment. - Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employers control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month. E. Place of payment. - Payment of wages shall be made at or near the place of work. IV. ADDITIONAL BENEFITS OR INCENTIVES A. Night shift differential. - Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten oclock in the evening and six oclock in the morning. B. Overtime work. - Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof. C. Undertime not offset by overtime. - Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter. D. Compensation for rest day, Sunday or holiday work. (a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day. (b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays. (c) Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on the employees scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage. (d) Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Article, the employer shall pay such higher rate. E. Right to holiday pay.

(a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten (10) workers; (b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate; and (c) "Holiday" includes: New Years Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, first of November, the thirtieth of November, the twenty-fifth and thirtieth of December and the day designated by law for holding a general election. F. Right to service incentive leave. Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay. G. Service charges. All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty-five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages. H. 13th Month Pay- All employees belonging in the private sector is entitled to a 13th Month Pay equivalent to one month wage or salary.