Midterms Reviewer Daway

LAW 113
Labor Standards Law

M|dterms kev|ewer
rof. atr|c|a k.. Sa|vador Daway

A2CkLS | CnUA |DL VLkA

Law 113 Labor SLandards Law | rof. uaway age 1 of 90
MldLerms 8evlewer C 2016 | Azores, Chua, ue veyra

1A8LL CI CCN1LN1S

l. ln18CuuC1lCn 1C LA8C8 LAW ........................................................................................................................ 1
1. LA8C8: CCnCL1 ......................................................................................................................................... 1
2. LA8C8 LAW .................................................................................................................................................. 1
3. CLASSlllCA1lCn ........................................................................................................................................... 3
4. 8ASlS ........................................................................................................................................................... 4
3. 1PL LA8C8 CCuL Cl 1PL PlLllnLS ......................................................................................................... 6
6. WC8k 8LLA1lCnSPl ................................................................................................................................. 13

ll. LA8C8 S1AnuA8uS LAW................................................................................................................................ 20
1. LMLC?MLn1 CLlClLS, 8LC8ul1MLn1 Anu LACLMLn1 Cl WC8kL8S Anu ACLnClLS........................... 20
2. ALlLn LMLC?MLn1 8LCuLA1lCn ............................................................................................................ 37
3. uLvLLCMLn1 Cl PuMAn 8LSCu8CLS .................................................................................................... 40
4. CCnul1lCnS Cl LMLC?MLn1 .................................................................................................................. 46
3. MlnlMuM WACLS Anu WACL llxlnC MACPlnL8? ................................................................................... 66
6. 1Pl81LLn1P MCn1P A? - u 831 ............................................................................................................ 83


I. IN1kCDUC1ICN 1C LA8Ck
LAW
1. LA8Ck: CCNCL1

In |ts genera| sense labor ls a physlcal Loll, Lhough lL does noL
necessarlly lnclude Lhe appllcaLlon of sklll, Lhus Lhere ls skllled
and unskllled labor
In |ts techn|ca| sense labor ls Lhe workforce, lL lncludes Lhe
unemployed as long as Lhey are poLenLlal workers, lL also
lncludes Lhe professlonals.
Who are cons|dered members of the work|ng force?
llllplno ClLlzens aged 13 and up

2. LA8Ck LAW

A. DLIINI1ICN
8. IUS1IIICA1ICN: SCCIAL IUS1ICL

1987 nIL. CCNS1I1U1ICN
Art. II Sec. 10. 1he SLaLe shall promoLe soclal [usLlce ln all phases
of naLlonal developmenL.
Art. kIII Sec. 1. 1he Congress shall glve hlghesL prlorlLy Lo Lhe
enacLmenL of measures LhaL proLecL and enhance Lhe rlghL of all
Lhe people Lo human dlgnlLy, reduce soclal, economlc, and
pollLlcal lnequallLles, and remove culLural lnequlLles by equlLably
dlffuslng wealLh and pollLlcal power for Lhe common good. 1o
Lhls end, Lhe SLaLe shall regulaLe Lhe acqulslLlon, ownershlp, use,
and dlsposlLlon of properLy and lLs lncremenLs.
Art. kIII Sec. 2. 1he promoLlon of soclal [usLlce shall lnclude Lhe
commlLmenL Lo creaLe economlc opporLunlLles based on
freedom of lnlLlaLlve and self-rellance.
Art. kIII Sec. 3. 1he SLaLe shall afford full proLecLlon Lo labor,
local and overseas, organlzed and unorganlzed, and promoLe full
employmenL and equallLy of employmenL opporLunlLles for all. lL
shall guaranLee Lhe rlghLs of all workers Lo self-organlzaLlon,
collecLlve bargalnlng and negoLlaLlons, and peaceful concerLed
acLlvlLles, lncludlng Lhe rlghL Lo sLrlke ln accordance wlLh law.
1hey shall be enLlLled Lo securlLy of Lenure, humane condlLlons
of work, and a llvlng wage. 1hey shall also parLlclpaLe ln pollcy
and declslon-maklng processes affecLlng Lhelr rlghLs and beneflLs
as may be provlded by law.
1he SLaLe shall promoLe Lhe prlnclple of shared responslblllLy
beLween workers and employers and Lhe preferenLlal use of
volunLary modes ln seLLllng dlspuLes, lncludlng conclllaLlon, and
shall enforce Lhelr muLual compllance LherewlLh Lo fosLer
lndusLrlal peace. 1he SLaLe shall regulaLe Lhe relaLlons beLween
workers and employers, recognlzlng Lhe rlghL of labor Lo lLs [usL
share ln Lhe frulLs of producLlon and Lhe rlghL of enLerprlses Lo
reasonable reLurns Lo lnvesLmenLs, and Lo expanslon and
growLh.

1IkA2CNA VS. nIL. LDS 1LCnNC-SLkVICL INC. (2009)
l: AdmlnlsLraLlve Manager (1lrazona) was reprlmanded for noL
belng able Lo properly handle a slLuaLlon lnvolvlng a rank-and-
flle employee. 1 clalms she was denled of due process and
demanded 2M for damages. She was LermlnaLed for breach of
conLracL and LrusL for readlng a confldenLlal leLLer abouL Lhe
counsel of PETs opinion on her case.
P: She was valldly dlsmlssed due Lo loss of LrusL and confldence.
CourL quoLed Lu1 Co. vs. nL8C The policy of social justice is
noL lnLended Lo counLenance wrongdolng slmply because lL ls
commlLLed by Lhe underprlvlleged. AL besL lL may mlLlgaLe Lhe
penalLy buL lL cerLalnly wlll noL condone Lhe offense... 1hose
who lnvoke soclal [usLlce may do so only lf Lhelr hands are clean
and Lhelr moLlves blameless and noL slmply because Lhey
happen Lo be poor. 1hls greaL pollcy of our ConsLlLuLlon ls noL
meanL for Lhe proLecLlon of Lhose who have proved Lhey are noL
worLhy of lL, llke Lhe workers who have LalnLed Lhe cause of
labor with the blemishes of their own character
nA UAN kLS1AUkAN1 VS. NLkC (2006)
l: SM food courL cashler (Sorla) scuffle wlLh her co-worker. 8oLh
refused Lo seLLle, prompLlng Lhe Manager Lo ban Lhem from
worklng wlLhln Lhe lood CourL premlses. S sued for lllegal
dlsmlssal, salary dlfferenLlals, servlce lncenLlve leave, separaLlon
pay and damages.
P: S ls valldly dlsmlssed for serlous mlsconducL. She ls noL
enLlLled Lo separaLlon pay. SeparaLlon pay shall be allowed as a
measure of soclal [usLlce only ln Lhose lnsLances where Lhe
employee ls valldly dlsmlssed for causes oLher Lhan serlous
mlsconducL or Lhose reflecLlng on hls moral characLer. (also
quoLed Lu1 vs nL8C)

C. ICUNDA1ICN Ck 8ASIS: CLICL CWLk CI
1nL S1A1L
1he rlghL of every person Lo pursue a buslness, occupaLlon or
professlon ls sub[ecL Lo Lhe paramounL rlghL of Lhe governmenL
as a parL of lLs pollce power Lo lmpose such resLrlcLlons and
regulaLlons as Lhe proLecLlon of Lhe publlc may requlre.

ST. LUKES MED. CENTER EMPLOYEES ASSOCIA1ICN -
AIW VS. NLkC (2007)
l: 8A 7431 mandaLed LhaL no person shall pracLlce as a x-ray
LechnologlsL wlLhouL proper cerLlflcaLe from Lhe 8oard. SL. Luke
x-ray Lechnlclan (Marlbel SanLos) could noL pass Lhe board exam
even afLer reLaklng lL many Llmes. She was offered a dlfferenL
[ob ln Lhe hosplLal buL dld noL accepL lL. LvenLually, she was
served a noLlce of separaLlon.
P: M was valldly LermlnaLed. Whlle Lhe rlghL of workers Lo
securlLy of Lenure ls guaranLeed by Lhe ConsLlLuLlon, lLs exerclse
may be reasonably regulaLed pursuanL Lo Lhe pollce power of
Lhe SLaLe Lo safeguard healLh, morals, peace, educaLlon, order,
safeLy, and Lhe general welfare of Lhe people. ConsequenLly,
persons who deslre Lo engage ln Lhe learned professlons
requlrlng sclenLlflc or Lechnlcal knowledge may be requlred Lo
Lake an examlnaLlon as a prerequlslLe Lo engaglng ln Lhelr
chosen careers.
D. UL1IMA1L GCAL: INDUS1kIAL LACL
Art. kIII Sec. 3 ar. 3. 1he SLaLe shall promoLe Lhe prlnclple of
shared responslblllLy beLween workers and employers and Lhe
preferenLlal use of volunLary modes ln seLLllng dlspuLes,
lncludlng conclllaLlon, and shall enforce Lhelr muLual compllance
LherewlLh Lo fosLer lndusLrlal peace.

CALALANG VS. WILLIAMS
l: rohlblLlon of anlmal-drawn vehlcles from passlng 8osarlo
sLreeL.
P: Social justice is neither communism, nor despotism, nor
atomism, nor anarchy, but the humanization of laws and the
equallzaLlon of soclal and economlc forces by Lhe SLaLe so LhaL
[usLlce ln lLs raLlonal and ob[ecLlvely secular concepLlon may aL
leasL be approxlmaLed. Soclal [usLlce means Lhe promoLlon of
Lhe welfare of all Lhe people, Lhe adopLlon by Lhe CovernmenL
of measure calculaLed Lo lnsure economlc sLablllLy of all Lhe
compeLenL elemenL of socleLy, Lhrough Lhe malnLenance of a
proper economlc and soclal equlllbrlum ln Lhe lnLerrelaLlons of
Lhe members of Lhe communlLy, consLlLuLlonally, Lhrough Lhe
adopLlon of measures legally [usLlflable, or exLra-
consLlLuLlonally, Lhrough Lhe exerclse of powers underlylng Lhe
exlsLence of all governmenLs on Lhe Llme-honored prlnclple of
salusp pull esL suprema lex.

L. MANAGLMLN1 kLkCGA1IVL
Const| Art. kIII Sec. 3, supra.
LkNLS1C M8CNG VS. A8S-C8N (2012)
l: LrnesLo ?mbong was a Lelevlslon LalenL aL A8S-C8n. A8S-C8n
lssued a pollcy requlrlng any employee who lnLends Lo run for
elecLlon Lo submlL a leLLer of reslgnaLlon whlle Lhose who lnLend
Lo openly campalgn for a candldaLe Lo submlL an LCA. L flled for
an LCA buL acLually ran for offlce and losL. Pe Lrled Lo come back
buL was only glven Llme Lo flnlsh hls work ln a radlo drama and
Lhen was subsequenLly LermlnaLed.
H: Es termination was valid. The policy issued was a valid
managemenL prerogaLlve. Lven as Lhe law ls sollclLous of Lhe
welfare of Lhe employees, lL musL also proLecL Lhe rlghL of an
employer Lo exerclse whaL are clearly managemenL
prerogaLlves. 1he free wlll of managemenL Lo conducL lLs own
buslness affalrs Lo achleve lLs purpose cannoL be denled.
NLGkCS SLASnLkS VS. ALVIN 1LNG (2012)
l: Alvln 1eng was a M8A player for Lhe Laguna Lakers. Pe had a
below-average performance durlng Came 4 of Lhe Season 4
playoffs champlonshlp and was pulled off Lhe game by Lhe
coach. Pe, Lhen, unLled hls shoe laces and donned hls pracLlce
[ersey. Pe called ln slck for Lhe 3
Lh
game. 1he Leam losL Lhe
champlonshlp maLch. Pe was Lhen subsequenLly LermlnaLed.
P: 1he penalLy of dlsmlssal was lncommensuraLe Lo Lhe
mlsconducL of 1eng. 1he penalLy musL be commensuraLe wlLh
Lhe acL or omlsslon lmpuLed Lo Lhe employee and musL be
lmposed ln connecLlon wlLh Lhe dlsclpllnary auLhorlLy of Lhe
employer. A severe reprlmand, flne or suspenslon could have
been lmposed.


I. SCCIAL IUS1ICL VIS--VIS MANAGLMLN1
kLkCGA1IVL
1nL CCCA-CCLA LkCk1 CCk. VS. CLAkI1A GACAAN
(2011)
l: ClarlLa Cacayan was a Senlor llnanclal AccounLanL. Cne of her
beneflLs was geLLlng food relmbursemenLs. She submlLLed 3
alLered recelpLs from dlfferenL resLauranLs. Coca-cola dlsmlssed
C afLer conducLlng hearlngs and lnvesLlgaLlons.
H: Cs termination is valid. She is a Financial Accountant who is
holdlng a poslLlon of responslblllLy or of LrusL and confldence.
AlLhough Lhe amounLs lnvolved were small and Lamperlng was
only done on dates and/or items on the receipt, Cs act
adversely reflecLed on her lnLegrlLy and honesLy whlch ls ample
basls for Coca-cola so lose lLs LrusL and confldence ln her.

G. 8ALANCING CI IN1LkLS1S
nC1LL LN1LkkISLS CI 1nL nIL. VS. SAMAnAN NG
MGA MANGAGAWA (2009)
l: PLl suffered an economlc slump and adopLed a downslzlng
scheme. As a resulL, PLl abollshed redundanL [obs and sub-
conLracLed oLhers. 1he respondenL unlon opposed Lhe
downslzlng scheme and asserLs LhaL Lhere was no economlc
slump and LhaL Lhere was a vlolaLlon Lo Lhe C8A due Lo Lhe
downslzlng. 1he unlon conducLed a sLrlke causlng unlon leaders
Lo be suspended. uesplLe Lhls, 48 employees were sLlll
LermlnaLed
P: 1he down-slzlng scheme ls valld. 1he ConsLlLuLlon affords full
proLecLlon Lo labor, buL Lhe pollcy ls noL Lo be bllndly followed aL
Lhe expense of caplLal. Always, Lhe lnLeresLs of boLh sldes musL
be balanced ln llghL of Lhe evldence adduced and Lhe pecullar
clrcumsLances surroundlng each case. 8eLrenchmenL and
redundancy are valld managemenL prerogaLlves durlng perlods
of buslness recesslon, lndusLrlal depresslon or seasonal
flucLuaLlons.
8eLrenchmenL ls Lhe reducLlon of work personnel usually due Lo
poor flnanclal reLurns, almed Lo cuL down cosLs for operaLlon
parLlcularly on salarles and wages. 8edundancy exlsLs where Lhe
number of employees ls ln excess of whaL ls reasonably
demanded by Lhe acLual requlremenLs of Lhe enLerprlse

3. CLASSIIICA1ICN

a. Labor SLandards mlnlmum requlremenLs prescrlbed by
exlsLlng laws, rules and regulaLlons relaLlng Lo wages, hours of
work, cosL-of-llvlng allowance, oLher moneLary and welfare
beneflLs, lncludlng occupaLlonal, safeLy and healLh sLandards
1he law whlch seLs ouL Lhe mlnlmum Lerms and condlLlons and
beneflLs of employmenL LhaL employers provlde or comply wlLh
and Lo whlch employees are enLlLled Lo as a maLLer of rlghL
b. Labor 8elaLlons deflnes Lhe sLaLus, rlghLs and duLles and Lhe
lnsLlLuLlonal mechanlsms LhaL govern Lhe lndlvldual and
collecLlve lnLeracLlons of employers, employees or Lhelr
represenLaLlves.
Lxample:
Crlevance machlnery ls a labor relaLlons mechanlsm, whlle Lhe
sub[ecL of Lhe complalnL ls labor sLandards such as unpald
overLlme work.

Labor sLandards - maLerlal of Lhe subsLance Lo be
processed
Labor relaLlons - mechanlsm LhaL processes Lhe
subsLance
c. Welfare LeglslaLlon lncludes laws LhaL provlde parLlcular
klnds of proLecLlon or beneflL Lo socleLy or segmenLs Lhereof ln
furLherance of soclal [usLlce.
ln LhaL sense, labor laws are necessarlly soclal leglslaLlon, labor
laws are soclal leglslaLlon, buL noL all soclal leglslaLlon ls labor
laws.


4. 8ASIS

A. LCCNCMIC 8ASIS

(1) Slavery
(2) Serfdom,
(3) ArLlsanshlp (lndependenL conLracLor)
(4)wage sysLem

8. LLGAL 8ASIS
1. 1987 nILIINL CCNS1I1U1ICN

1987 Const|tut|on
Art. II, Sec. S. 1he malnLenance of peace and order, Lhe
proLecLlon of llfe, llberLy, and properLy, and promoLlon of Lhe
general welfare are essenLlal for Lhe en[oymenL by all Lhe people
of Lhe blesslngs of democracy.
Art. II, Sec. 9. 1he SLaLe shall promoLe a [usL and dynamlc soclal
order LhaL wlll ensure Lhe prosperlLy and lndependence of Lhe
naLlon and free Lhe people from poverLy Lhrough pollcles LhaL
provlde adequaLe soclal servlces, promoLe full employmenL, a
rlslng sLandard of llvlng, and an lmproved quallLy of llfe for all.
Art. II, Sec. 10. 1he SLaLe shall promoLe soclal [usLlce ln all
phases of naLlonal developmenL.
Art. II, Sec. 13. 1he SLaLe recognlzes Lhe vlLal role of Lhe youLh ln
naLlon-bulldlng and shall promoLe and proLecL Lhelr physlcal,
moral, splrlLual, lnLellecLual, and soclal well-belng. lL shall
lnculcaLe ln Lhe youLh paLrloLlsm and naLlonallsm, and
encourage Lhelr lnvolvemenL ln publlc and clvlc affalrs.
Art. II, Sec. 14. 1he SLaLe recognlzes Lhe role of women ln
naLlon-bulldlng, and shall ensure Lhe fundamenLal equallLy
before Lhe law of women and men.
Art. II, Sec. 18. 1he SLaLe afflrms labor as a prlmary soclal
economlc force. lL shall proLecL Lhe rlghLs of workers and
promoLe Lhelr welfare.
Art. III, Sec. 8. 1he rlghL of Lhe people, lncludlng Lhose employed
ln Lhe publlc and prlvaLe secLors, Lo form unlons, assoclaLlons, or
socleLles for purposes noL conLrary Lo law shall noL be abrldged.
ArL. xlll, Sec. 14. 1he SLaLe shall proLecL worklng women by
provldlng safe and healLhful worklng condlLlons, Laklng lnLo
accounL Lhelr maLernal funcLlons, and such faclllLles and
opporLunlLles LhaL wlll enhance Lhelr welfare and enable Lhem
Lo reallze Lhelr full poLenLlal ln Lhe servlce of Lhe naLlon.

193S Const|tut|on
Art kIV, Sec. 6. 1he SLaLe shall afford proLecLlon Lo labor,
especlally Lo worklng women, and mlnors, and shall regulaLe Lhe
relaLlons beLween Lhe landowner and LenanL, and beLween
labor and caplLal ln lndusLry and ln agrlculLure. 1he SLaLe may
provlde for compulsory arblLraLlon.

1973 Const|tut|on
Art. II Sec. 6. 1he SLaLe shall promoLe soclal [usLlce Lo ensure Lhe
dlgnlLy, welfare, and securlLy of all Lhe people. 1owards Lhls end,
Lhe SLaLe shall regulaLe Lhe acqulslLlon, ownershlp, use,
en[oymenL, and dlsposlLlon of prlvaLe properLy, and equlLably
dlffuse properLy ownershlp and proflLs.
Art. II Sec. 9. 1he SLaLe shall afford proLecLlon Lo labor, promoLe
full employmenL and equallLy ln employmenL, ensure equal work
opporLunlLles regardless of sex, race, or creed, and regulaLe Lhe
relaLlon beLween workers and employers. 1he SLaLe shall assure
Lhe rlghLs of workers Lo self-organlzaLlon, collecLlve bargalnlng,
securlLy of Lenure, and [usL and humane condlLlons of work. 1he
SLaLe may provlde for compulsory arblLraLlon
N8 VS. CA8ANSAG (200S)
l: llorence Cabansag arrlved ln Slngapore as a LourlsL. She was
subsequenLly hlred as a 8ranch CredlL Cfflcer aL Lhe Slngapore
branch of n8. She was lssued an Cverseas LmploymenL
CerLlflcaLe by CLA and LmploymenL ass from Slngapores
MlnlsLry of Manpower. AfLer worklng for 3 monLhs and desplLe
her good [ob performance, v asked her Lo reslgn. l refused and
was evenLually flred.
P: l was lllegally dlsmlssed and as she was denled of due
process. Per LmploymenL ass does noL lmply LhaL she has
walved her naLlonal laws on labor. Per Cverseas LmploymenL
CerLlflcaLe auLhorlzed her worklng sLaLus abroad whlle enLlLllng
her Lo all beneflLs and processes under hll. SLaLuLes. 1herefore,
even lf she ls worklng abroad she en[oys Lhe proLecLlon of
hlllpplne labor and soclal leglslaLlon, conLracL sLlpulaLlons Lo
Lhe conLrary noLwlLhsLandlng. [ArLlcle 3 LC, Sec. 18, ArL ll and
Sec 3, ArL xlll, 1987 ConsLlLuLlon]

Law 113 Labor SLandards Law | rof. uaway age S of 90

1.A. kIGn1 1C SLCUkI1 CI 1LNUkL
INNCDA1A nILS. VS. ULIADA-LCL2 (2006)
l: !ocelyn Cue[ada-Lopez and Estella Natividad(star) were
formaLLers of lnnodaLa hlls, a daLa encodlng/converslon
buslness. ! and L flled for lllegal dlsmlssal. lnnodaLa conLended
LhaL Lhelr conLracL explred afLer Lhe 1-year flxed perlod.
P: 1helr LermlnaLlon was unlawful. Whlle Lhe CourL recognlzed
Lhe valldlLy of flxed Lerm conLracLs, perlods lmposed Lo block Lhe
acqulslLlon of securlLy of Lenure should be sLruck down for belng
conLrary Lo law, morals, good cusLoms, publlc order or publlc
pollcy. 1he language of Lhelr conLracL allowed lnnodaLa Lo
terminate it within the first 3 months upon employees failure to
meeL Lhe quallflcaLlons and sLandards of Lhe employer whlch
was known Lo Lhe employee. 1hls ls baslcally a probaLlonary
perlod. ln case of doubL, Lerms of conLracL are consLrued ln favor
of labor.
1.8. kIGn1 1C nUMANL CCNDI1ICNS CI WCkk
IN1LkNA1ICNAL SCnCCL ALLIANCL CI LDUCA1CkS VS.
UISIM8ING (2000)
l: lSAL ls a school auLhorlzed Lo hlre forelgn employees.
lorelgners hlred abroad recelve hlgher salary and en[oy beneflLs
noL granLed Lo llllplnos and local-hlred allens. 1he school lnslsLs
LhaL Lhese beneflLs are due Lo Lhe consequences LhaL Lhe
forelgn-hlred faculLy experlence upon leavlng Lhelr counLry and
worklng ln Lhe hlllpplnes: llvlng away from Lhelr famlly and
Lhelr homeland and Lhelr llmlLed Lenure.
H: The Constitution provides that labor is entitled to humane
conditions of work Lhls ls noL resLrlcLed Lo Lhe physlcal
workplace buL exLends Lo how employers LreaL Lhelr employees.
lnLernaLlonal Law proscrlbes dlscrlmlnaLlon whlch has been
incorporated in the Phil. Constitution. Equal pay for equal
work, there is no reasonable distinction between the services
rendered by forelgn hlres and local hlres.

1.C. kIGn1 1C A LIVING WAGL
1987 Const|tut|on
Art. kIII, sec. 3, par. 2 1aklng lnLo accounL Lhe requlremenLs of
conservaLlon, ecology, and developmenL, and sub[ecL Lo Lhe
requlremenLs of agrarlan reform, Lhe Congress shall deLermlne,
by law, Lhe slze of lands of Lhe publlc domaln whlch may be
acqulred, developed, held, or leased and Lhe condlLlons
Lherefore
Art. kV Sec. 1 1he SLaLe recognlzes Lhe llllplno famlly as Lhe
foundaLlon of Lhe naLlon. Accordlngly, lL shall sLrengLhen lLs
solldarlLy and acLlvely promoLe lLs LoLal developmenL.
Art. kV, Sec. 3(3) 1he sLaLe shall defend: (3) 1he rlghL of famllles
or famlly assoclaLlons Lo parLlclpaLe ln Lhe plannlng and
lmplemenLaLlon of pollcles and programs LhaL affecL Lhem.
2. CIVIL CCDL
Art. 19. Lvery person musL, ln Lhe exerclse of hls rlghLs and ln
Lhe performance of hls duLles, acL wlLh [usLlce, glve everyone hls
due, and observe honesLy and good falLh
Art. 20. Lvery person who, conLrary Lo law, wlllfully or
negllgenLly causes damage Lo anoLher, shall lndemnlfy Lhe laLLer
for Lhe same.
Art. 21. Any person who wlllfully causes loss or ln[ury Lo anoLher
ln a manner LhaL ls conLrary Lo morals, good cusLoms or publlc
pollcy shall compensaLe Lhe laLLer for Lhe damage
Art. 1700. 1he relaLlons beLween caplLal and labor are noL
merely conLracLual. 1hey are so lmpressed wlLh publlc lnLeresL
LhaL labor conLracLs musL yleld Lo Lhe common good. 1herefore,
such conLracLs are sub[ecL Lo Lhe speclal laws on labor unlons,
collecLlve bargalnlng, sLrlkes and lockouLs, closed shop, wages,
worklng condlLlons, hours of labor and slmllar sub[ecLs.
Art. 1701. nelLher caplLal nor labor shall acL oppresslvely agalnsL
Lhe oLher, or lmpalr Lhe lnLeresL or convenlence of Lhe publlc.

3. LA8Ck CCDL AND CMNI8US kULLS
IMLLMLN1ING 1nL LA8Ck CCDL
Sources of labor laws ln Lhe hlllpplnes:
1. lnLernaLlonal Law
2. ConsLlLuLlon
3. Clvll Code
4. Labor Code
3. Speclal laws
-nC 8CCM lC8 lnLCuALl1? ln 1PL PlLllnL !u8lSulC1lCn

4. IN1LkNA1ICNAL CCNVLN1ICNS,
kLCCMMLNDA1ICNS
1987 h||. Const|tut|on , Art. II, Sec. 2. 1he hlllpplnes
renounces war as an lnsLrumenL of naLlonal pollcy, adopLs Lhe
generally accepLed prlnclples of lnLernaLlonal law as parL of Lhe
law of Lhe land and adheres Lo Lhe pollcy of peace, equallLy,
[usLlce, freedom, cooperaLlon, and amlLy wlLh all naLlons.

S. 1nL LA8Ck CCDL CI 1nL
nILIINLS

A. 8kILI nIS1Ck
1968 WrlLlng of Clvll Code began wlLh MlnlsLer of Labor 8las l.
Ople Father of the Labor Code
Cb[ecLlves:
1. ConsolldaLe exlsLlng pleces of labor leglslaLlon
2. 8eorlenL Lhem Lo Lhe needs of economlc developmenL and
[usLlce

AfLer seven Llmes of drafLlng and redrafLlng:
Aprll 28, 1973 raLlfled by a naLlonal 1rlparLlLe Congress
May 1, 1973 submlLLed Lo Lhe resldenL
May 1, 1974 slgned lnLo law as u no. 442
nov. 1, 1974 Look effecL, earller amended by u no. 370-A
8. NAML CI DLCkLL
LC Art. 1 This decree shall be known as the Labor Code of the
Philippines.
C. DA1L CI LIILC1IVI1
Art. 2 1hls Code shall Lake effecL 6 monLhs afLer lLs
promulgaLlon.
D. DLCLAkA1ICN CI 8ASIC CLIC
Art. 3. 1he SLaLe shall afford proLecLlon Lo labor, promoLe full
employmenL, ensure equal work opporLunlLles regardless of sex,
race or creed, and regulaLe Lhe relaLlons beLween workers and
employers. 1he SLaLe shall assure Lhe rlghLs of workers Lo self-
organlzaLlon, collecLlve bargalnlng, securlLy of Lenure, and [usL
and humane condlLlons of work.
L. CCNS1kUC1ICN IN IAVCk CI LA8Ck
Art. 4. All doubLs ln Lhe lmplemenLaLlon and lnLerpreLaLlon of
Lhe provlslons of Lhls Code, lncludlng lLs lmplemenLlng rules and
regulaLlons, shall be resolved ln favor of labor.

CC Art. 1702 ln case of doubL, all labor leglslaLlon and all labor
conLracLs shall be consLrued ln favor of Lhe safeLy and decenL
llvlng for Lhe laborer.
1he mandaLe ls Lo resolve doubL, lf any, ln case of labor. lf Lhere
ls no doubL ln lmplemenLlng and lnLerpreLlng Lhe law, Lhe law
wlll have Lo be applled as lL ls.

In re: employment bargaining, theres no doubt that employer
sLands on hlgher fooLlng Lhan Lhe employee.
1. CreaLer supply Lhan demand for labor.
2. 1he need for employmenL by labor comes from vlLal, and
even desperaLe, necesslLy.
resumpLlon: a laborer who walves ln advance any beneflL
granLed hlm by law does so, noL ln hls lnLeresL or Lhrough
generoslLy, buL under Lhe forceful lnLlmldaLlon of urgenL need,
hence, be coolJ oot bove so octeJ fteely ooJ voloototlly.
Powever, managemenL ls also enLlLled Lo Lhe exerclse of lLs
prerogaLlves, sub[ecL Lo llmlLaLlons provlded by:
1. Law
2. ConLracL or collecLlve bargalnlng agreemenLs
3. Ceneral prlnclples of falr play and [usLlce
lundamenLal managemenL rlghLs:
1. 8lghL Lo reLurn of lnvesLmenLs
2. 8lghL Lo prescrlbe rules
3. 8lghL Lo selecL employees
4. 8lghL Lo Lransfer or dlscharge employees
1he SLaLe has no rlghL Lo lnLerfere wlLh Lhe prlvaLe employmenL
conLracL and lLs sLlpulaLlons, excepL ln Lhe exerclse of pollce
power.

MISAMIS CkILN1AL II LLLC1kIC SLkVICL CCCLkA1IVL
VS. VIkGILIC M. CAGALAWAN (2012)

l: vlrglllo Cagalawan was an AcLlng Pead of Lhe dlsconnecLlon
crew of MC8LSCC. Pe was Lransferred Lo a dlfferenL sub-offlce
as a dlsconnecLlon crew member wlLhouL glvlng any reasons. v
evenLually sLopped worklng and flled a complalnL for
consLrucLlve dlsmlssal. MC8LSCC laLer sald ln Lrlal LhaL Lhe
Lransfer was due Lo an alleged lack of crew members ln Lhe sub-
offlce. v presenLed a cerLlflcaLlon from Lhe head of Lhe sub-
offlce LhaL Lhey were noL undermanned
P: v was lllegally dlsmlssed. MC8LSCC cannoL rely on Lhe
weakness of Vs evidence in order to give credit to its own
evldence. When Lhere ls doubL beLween Lhe evldence submlLLed
by Lhe employer and Lhe employee, Lhe scales of [usLlce musL be
LllLed Lo LhaL of Lhe employee.

DANSAk1 SLCUkI1 ICkCL VS. 8AGC (2010)
l: !ean 8agoy was a securlLy guard hlred by uansarL Lo guard Lhe
esLabllshmenLs of lLs varlous cllenLs. ! was allegedly caughL
sleeplng on Lhe [ob and lncurred absences wlLhouL leave for
whlch she was glven noLlces of dlsclpllnary acLlon. ! flled a

complalnL for underpaymenL and consLrucLlve dlsmlssal. uansarL
argued LhaL ! was Lhe one who abandoned her [ob and
presenLed several reporLs from uCLL LhaL Lhey have complled
wlLh Lhe paymenL of backwages for all Lhelr guards.
P: uansarL ls sLlll llable. 1he burden of provlng paymenL of
moneLary clalms resLs ln Lhe employer because Lhe employee ls
noL ln possesslon of Lhe perLlnenL records (payrolls, personal
flles, remlLLances, eLc) LhaL wlll show oLherwlse. Any doubL
arlslng from Lhe evaluaLlon of evldence as beLween Lhe
employer and employee musL be resolved ln favor of Lhe laLLer.
Labor arbiters Jurisdiction over labor cases
I. LA8Ck Ak8ITERS JURISDICTION CVLk
LA8Ck CASLS

Art. 223. !"#$%&$'($)* ), (-. /01)# 2#1$(.#% 0*& (-. 3)44$%%$)*5

A. LxcepL as oLherwlse provlded under Lhls Code, Lhe Labor
ArblLers shall have orlglnal and excluslve [urlsdlcLlon Lo hear
and declde, wlLhln LhlrLy (30) calendar days afLer Lhe
submlsslon of Lhe case by Lhe parLles for declslon wlLhouL
exLenslon, even ln Lhe absence of sLenographlc noLes, Lhe
followlng cases lnvolvlng all workers, wheLher agrlculLural
or non-agrlculLural:
1. unfalr labor pracLlce cases,
2. 1ermlnaLlon dlspuLes,
3. lf accompanled wlLh a clalm for relnsLaLemenL, Lhose
cases LhaL workers may flle lnvolvlng wages, raLes of
pay, hours of work and oLher Lerms and condlLlons of
employmenL,
4. Clalms for acLual, moral, exemplary and oLher forms of
damages arlslng from Lhe employer-employee relaLlons,
3. Cases arlslng from any vlolaLlon of ArLlcle 264 of Lhls
Code, lncludlng quesLlons lnvolvlng Lhe legallLy of
sLrlkes and lockouLs, and
6. LxcepL clalms for Lmployees CompensaLlon, Soclal
SecurlLy, Medlcare and maLernlLy beneflLs, all oLher
clalms arlslng from employer-employee relaLlons,
lncludlng Lhose of persons ln domesLlc or household
servlce, lnvolvlng an amounL exceedlng flve Lhousand
pesos (3,000.00) regardless of wheLher accompanled
wlLh a clalm for relnsLaLemenL.
8. 1he Commlsslon shall have excluslve appellaLe [urlsdlcLlon
over all cases declded by Labor ArblLers.
C. Cases arlslng from Lhe lnLerpreLaLlon or lmplemenLaLlon of
collecLlve bargalnlng agreemenLs and Lhose arlslng from Lhe
lnLerpreLaLlon or enforcemenL of company personnel
pollcles shall be dlsposed of by Lhe Labor ArblLer by
referrlng Lhe same Lo Lhe grlevance machlnery and
volunLary arblLraLlon as may be provlded ln sald
agreemenLs.

LA DLL VALLL VS. D (2009)
l: LA uel valle rendered a declslon LhaL favored a dlsmlssed
employee ln an lllegal dlsmlssal case. Pe also lssued a wrlL of
execuLlon Lo relnsLaLe Lhe employee and paymenL of her
backwages. lf Lhe cash ls noL obLalned, Lhe sherlff was
auLhorlzed Lo levy any movables or chaLLels. 1he sherlff
Lherefore levled 33 sacks of flour and 3 sacks of reflned sugar.
uy, Lhe owner of Lhe company flled for ln[uncLlon and damages
wlLh Lhe 81C. 81C dlsmlssed Lhe case due Lo lack of [urlsdlcLlon
and LhaL Lhe case should be flled wlLh Lhe labor Lrlbunal.
P: 1he case ls wlLhln Lhe [urlsdlcLlon of Lhe LA. When uy
challenged Lhe valldlLy of Lhe wrlL of execuLlon, he also
challenged Lhe valldlLy of Lhe LA declslon. 1rlal courLs have no
[urlsdlcLlon Lo acL on labor cases or varlous lncldenLs arlslng
Lherefrom.
MA. ANA M 1AMCN1L&LDIL8Lk1C1AMCN1L V. nS8C
(2011)
l: Ana 1amonLe ls a regular employee aL PS8C. She Look a
houslng loan from PS8CS8 whlch was secured by a real esLaLe
morLgage and ls payable by auLomaLlc payroll reducLlon. When a
labor dlspuLe arose, A and a number of employees were
dlsmlssed for abandonlng Lhelr work. When PS8CS8 demanded
paymenL for Lhelr loan, A and her husband could noL pay and Lhe
morLgage was foreclosed. 1he spouses clalm LhaL Lhe cause of
foreclosure was noL Lhe non-payment but As termlnaLlon.
H: The spouses contention has no basis. They received the
demand leLLers buL sLlll falled Lo pay Lhe amorLlzaLlons. 1he
CourL clLed nesLle vs. nL8C where nesLle demanded for
paymenL of amorLlzaLlons and car loans. 1he CourL held LhaL Lhls
ls noL a labor dlspuLe as lL lnvolves debLor-credlLor relaLlons
raLher Lhan employee-employer relaLlons.
MA. MLkCLDLS 8Ak8A VS. LICLC DL CAGAAN
UNIVLkSI1 (2012)
l: Ma. Mercedes 8arba recelved a scholarshlp granL from Llceo
de Cagayan unlverslLy. Per scholarshlp conLracL sLlpulaLes LhaL
she shall serve Lhe school ln whaLever poslLlon Lhe school
deslres relaLed Lo her sLudles for noL less Lhan 10 years. 8
became Lhe dean of Lhe College of hyslcal 1herapy. When
enrolmenL ln Lhe college dropped Lo 20 sLudenLs, Lhe operaLlons
of Lhe college was frozen by Lhe unlverslLy resldenL and 8 was
asked Lo work as a faculLy ln Lhe College of nurslng. 8 lnsLead
asked for separaLlon pay. L lnslsLed LhaL 8 goes back Lo work buL
8 conLended LhaL dolng so would be a form of demoLlon and
refused to do so, leading to Bs termination. B filed for illegal
dlsmlssal slnce she sLlll has 2 more years lefL ln her conLracL. CA

held LhaL 8 ls a corporaLe offlcer, Lherefore, Lhe regular courLs
have Lhe proper [urlsdlcLlon of Lhe case
P: 8 is an employee. The companys by laws do not indicate that
a dean ls a corporaLe offlcer. 4 fold LesL Lo be consldered as an
employee: (1) Lhe selecLlon and engagemenL of Lhe employee
[she was appolnLed as Lhe ueanby Lhe unlv. resldenL] , (2)
paymenL of wages [Bs salary], (3) power of dismissal [she was
terminated], (4) the employers power to control the employee
wlLh respecL Lo Lhe means and meLhods by whlch Lhe work ls Lo
be accompllshed [she was dlrecLed Lo reporL Lo Lhe acLlng dean
of College Cf nurslng].
I.1. LA8Ck VS CIVIL DISU1L
MANLSL VS. ICLI8LL ICCD CCk (2012)
l: Manese llrsL AsslsLanL SLore Manager 1ralnee, Cruz
Second AsslsLanL SLore Manager, enano ShlfL manager. M, C
and were parL of Lhe Leam Lasked Lo open a new !olllbee
branch. uue Lo dlfferenL evenLs (sLore openlng was posLponed 3
times, sales targets for the opening date werent met, etc), there
were chlcken [oy re[ecLs. Some of Lhem were refused by Lhe
commlssary due Lo Lhelr dlscoloraLlon and deLerloraLed
condlLlon. A few monLhs afLer, M, C and declded Lo soak Lhe
re[ecLs ln soda waLer and segregaLe Lhem. When Lhe area
manager lnspecLed Lhe branch, was caughL cleanlng Lhe
re[ecLs. lL was found ouL LhaL 2,130 pcs of Chlcken [oy were
wasted and were kept inside the branchs walk-ln freezer. M, C
and were all LermlnaLed due Lo loss of LrusL and confldence. M
had a remalnlng balance on her car loan and !olllbee asked her
Lo reLurn Lhe car, Lo whlch she refused.
P: M, C and were valldly dlsmlssed. When an employee holds a
managerlal poslLlon, proof beyond reasonable doubL of acLlons
requlrlng dlsclpllnary acLlon ls noL requlred provlded LhaL Lhere
is a valid reason for the loss of trust and confidence. Ms wanting
Lo seL-off her moneLary clalm (her unpald salary, slck leave, eLc)
wlLh her remalnlng car loan balance ls noL a labor lssue. lL ls a
clvll dlspuLe. She sLlll has Lhe obllgaLlon Lo pay !olllbee for Lhe
car loan.
I. 1LCnNICAL kULLS NC1 8INDING
Art. 227. 6.'-*$'07 #"7.% *)( 1$*&$*8 0*& 9#$)# #.%)#( ()
04$'017. %.((7.4.*(5
ln any proceedlng before Lhe Commlsslon or any of Lhe Labor
ArblLers, Lhe rules of evldence prevalllng ln courLs of law or
equlLy shall noL be conLrolllng and lL ls Lhe splrlL and lnLenLlon of
Lhls Code LhaL Lhe Commlsslon and lLs members and Lhe Labor
ArblLers shall use every and all reasonable means Lo ascerLaln
Lhe facLs ln each case speedlly and ob[ecLlvely and wlLhouL
regard Lo LechnlcallLles of law or procedure, all ln Lhe lnLeresL of
due process. ln any proceedlng before Lhe Commlsslon or any
Labor ArblLer, Lhe parLles may be represenLed by legal counsel
buL lL shall be Lhe duLy of Lhe Chalrman, any resldlng
Commlssloner or Commlssloner or any Labor ArblLer Lo exerclse
compleLe conLrol of Lhe proceedlngs aL all sLages. Any provlslon
of law Lo Lhe conLrary noLwlLhsLandlng, Lhe Labor ArblLer shall
exerL all efforLs Lowards Lhe amlcable seLLlemenL of a labor
dlspuLe wlLhln hls [urlsdlcLlon on or before Lhe flrsL hearlng. 1he
same rule shall apply Lo Lhe Commlsslon ln Lhe exerclse of lLs
orlglnal [urlsdlcLlon.
8ules of Lvldence ln Lhe 8ules of CourL shall noL be conLrolllng ln
proceedlngs before Lhe nL8C or Lhe Labor ArblLers.

MANILA LLLC1kIC CC V. IAN CAkLC GALA (2012)
l: !ohn Carlo Cala was a probaLlonary llneman for ML8ALCC. Pe
was dlsmlssed afLer 4 monLhs for alleged compllclLy ln pllferages
of MERALCOs electrical supplies. J filed an illegal dismissal case
agalnsL ML8ALCC. uurlng Lhe Lrlal of Lhe case, ! moved for Lhe
dismissal of one of MERALCOs petition on technical grounds
(Verification and Certification, Secretarys Certificate and
Affidavit of Service do not contain the details of the
CommunlLy or 8esldence 1ax CerLlflcaLes of Lhe afflanLs, and
LhaL Lhe lawyers who slgned Lhe peLlLlon falled Lo lndlcaLe Lhelr
updaLed MCLL cerLlflcaLe numbers.
P: 1he appllcaLlon f Lechnlcal rules of procedure ln labor cases
may be relaxed Lo serve Lhe demands of subsLanLlal [usLlce. Also,
Lhere was subsLanLlal evldence LhaL proved LhaL Cala ls noL flL Lo
conLlnue employmenL.
G.1. LI8LkALI1 IN ALICA1ICN CI kULLS
INDUS1kIAL 1IM8Lk CCk V. A8A8CN (2006)
l: lCC ls Lhe owner of a plywood planL leased Lo l1C. AfLer
someLlme, l1C noLlfled uCLL and lLs workers LhaL lL wlll undergo
a no plant operation due to lack of raw materials and will
resume only afLer lL can secure logs for mllllng. Powever, l1C
eventually notified DOLE and its workers of the plants shutdown
due Lo Lhe non - renewal of Lhelr explred anLl - polluLlon permlL
and Lhe LermlnaLlon of Lhe lease wlLh lCC. llnal noLlce of
closure was glven wlLh an advlce for workers Lo collecL Lhe
beneflLs due Lhem. lCC Look over Lhe planL Lhe same day l1C
ceased operaLlon. Lmployees flled for lllegal dlsmlssal. LA ruled
agalnsL l1C. l1C and lCC flled a Mf8 whlch was denled because
lL was flled ouL of Llme (3 days afLer Lhe lasL day of reglamenLary
perlod).

P: SubsLanLlal [usLlce ls besL served by allowlng peLlLlon for rellef
desplLe laLe flllng of Mf8. CLherwlse, greaLer ln[usLlce would be
done Lo l1C by orderlng Lo relnsLaLe Lo poslLlons LhaL no longer
exlsLs. 1here should be a llberallLy Lo Lhe appllcaLlons of
Lechnlcal rules and procedures.
G.2. SU8S1AN1IAL CCMLIANCL WI1n 1nL
kULLS
MA. LIGAA SAN1CS V. LI11CN MILLS (2011)
l: Ma. Llgaya SanLos was a clerk aL LlLLon Mllls. She was allegedly
engaglng ln an unauLhorlzed arrangemenL wlLh a wasLe buyer
and a crlmlnal complalnL for robbery/exLorLlon agalnsL her was
flled. uue Lo Lhls, she was lssued a LeLLer of 1ermlnaLlon . She
flled for lllegal dlsmlssal. nL8C and LA dlsmlssed Lhe complalnL.
CA dlsmlssed Lhe Mf8 for fallure Lo lndlcaLe ln Lhe peLlLlon Lhe
actual address of the parties (only her counsels address was
Lhere) and Lo sLaLe ln Lhe verlflcaLlon and CerLlflcaLlon of non-
forum shopplng LhaL Lhere were no oLher pendlng cases
beLween Lhe parLles aL Lhe Llme of Lhe flllng.
P: 1he rules of procedure should be relaxed when Lhere ls
subsLanLlal and subsequenL compllance ln order Lo promoLe
rather than frustrate the ends of justice. The mention of parties
respective counsels address constitutes substanLlal compllance
wlLh Lhe requlremenLs of Sec. 3 8ule 46 of Lhe 8oC. As for Lhe
verlflcaLlon and CerLlflcaLlon of non-forum shopplng, she
noneLheless cerLlfled LhaL she has noL flled a slmllar case before
any oLher courL or Lrlbunal.
n. kULL MAkING]LIMI1A1ICN
Art. S ku|es and kegu|at|ons - 1he ueparLmenL of Labor and
LmploymenL and oLher agencles charged wlLh Lhe
admlnlsLraLlon and enforcemenL of Lhls Code or any of lLs parLs
shall promulgaLe Lhe necessary lmplemenLlng rules and
regulaLlons. Such rules and regulaLlons shall become effecLlve
flfLeen days afLer announcemenL of Lhelr adopLlon ln
newspapers of general clrculaLlon.

1hls provlslons vesLs Lhe ueparLmenL of Labor and LmploymenL
wlLh rule-maklng powers slmllar Lo Lhose of the legislatures.
Powever, a rule or regulaLlon promulgaLed ln excess of lLs rule-
maklng auLhorlLy (l.e. admlnlsLraLlve lnLerpreLaLlon whlch Lakes
away a beneflL granLed ln Lhe law) ls vold.

kAISANANGMANGGAGAWANGINAGAkAVS NLkC
(1987)
l: A C8A was enLered beLween kM and lranklln 8aker Co LhaL
Lhe employees would be havlng 33.73/a monLh for Lhe 2
nd
year
of Lhe C8A and 49.30/monLh by lLs 3
rd
year. A monLh afLer, u
113 was lssued, glvlng an across-Lhe-board lncrease of 60 ln
emergency allowance wlLh Lhe exempLlon Lo dlsLressed
employers. The LA relied on the Labor Departments IRR of PD
113 whlch sLaLed LhaL Lhose who pald less Lhan Lhe lncrease
would only pay Lhe dlfference, Lhereby maklng Lhe 1.33/day
lncrease granLed by Lhe C8A be deducLed from Lhe 2.00/day
lncrease provlded for by u 1123
P: 1he Sec. of Labor exceeded ln hls auLhorlLy when he added
anoLher exempLlon Lo Lhe law oLher Lhan Lhose sLaLed ln lL. 1he
exempLlon should only perLaln Lo Lhe dlsLressed employers.
I. ALICA8ILI1
Art. 6. App||cab|||ty - All rlghLs and beneflLs granLed Lo workers
under Lhls Code shall, excepL as oLherwlse provlded hereln,
apply Lo all workers, wheLher agrlculLural or non-agrlculLural.
Art. 282 Government emp|oyees - 1he Lerms and condlLlons of
employmenL of all governmenL employees, lncludlng employees
of governmenL-owned and conLrolled corporaLlons, shall be
governed by Lhe Clvll Servlce Law, rules and regulaLlons. 1helr
salarles shall be sLandardlzed by Lhe naLlonal Assembly as
provlded for ln Lhe new ConsLlLuLlon. Powever, Lhere shall be no
reducLlon of exlsLlng wages, beneflLs and oLher Lerms and
condlLlons of employmenL belng en[oyed by Lhem aL Lhe Llme of
Lhe adopLlon of Lhls Code.

1987 Const|tut|on, Ik-8 Sec. 2 (1) 1he clvll servlce embraces all
branches, subdlvlslons, lnsLrumenLallLles, and agencles of Lhe
CovernmenL, lncludlng governmenL-owned or conLrolled
corporaLlons wlLh orlglnal charLers.


1. ALICA8ILI1 1C GCVLkNMLN1 CCkCkA1ICNS:
Labor Code applles Lo a governmenL corporaLlon
lncorporaLed under Lhe CorporaLlon Code.
no longer wlLhln Lhe amblL of Clvll Servlce Law as provlded
by Lhe 1987 ConsLlLuLlon:
The Civil Service embraces all branches, subdivisions,
lnsLrumenLallLles, and agencles of Lhe CovernmenL,
lncludlng governmenL-owned or conLrolled corporaLlons
:$(- )#$8$*07 '-0#(.#%.
kULL: Government corporat|ons created by or|g|na| charter
from Congress are sub[ect to C|v|| Serv|ce ru|es, wh||e those
|ncorporated under the genera| Corporat|on Law are covered
by the Labor Code.
2. noL appllcable Lo governmenL agencles or lnsLrumenLallLles.
3. Labor Code may apply even lf Lhe parLles have no employer-
employee relationship (e.g. indirect employers liability, illegal
recrulLmenL, or mlsuse of CLA llcense)
NCC LNLkG DLVLLCMLN1 CCk VS. NLkC (1991)
l: uanllo Mercado was glven varlous poslLlons by nCC- LuC.
AfLer 6 years, he was dlsmlssed for alleged serlous acLs of
dlshonesLy and vlolaLlons of company rules and regulaLlons. u
flled a complalnL for lllegal dlsmlssal
P: lollowlng Sec. 2(l) ArL. lx-8 of 1987 hll. ConsLlLuLlon, Lhe LesL
ln deLermlnlng wheLher a governmenL owned corporaLlon ls
sub[ecL Lo Lhe Labor Code or Lhe Clvll Servlce law ls lf lLs
creaLed by a speclal charLer = CSL, lf creaLed by Lhe Ceneral
CorporaLlon Law = LC. nCC-LuC, havlng been lncorporaLed
under Lhe Ceneral CorporaLlon Law, ls sub[ecL Lo Lhe provlslons
of LC.
I. LNICkCLMLN1 AND SANC1ICNS
Art. 217. Iur|sd|ct|on of the Labor Arb|ters and the Comm|ss|on.
- (a) LxcepL as oLherwlse provlded under Lhls Code, Lhe Labor
ArblLers shall have orlglnal and excluslve [urlsdlcLlon Lo hear and
declde, wlLhln LhlrLy (30) calendar days afLer Lhe submlsslon of
Lhe case by Lhe parLles for declslon wlLhouL exLenslon, even ln
Lhe absence of sLenographlc noLes, Lhe followlng cases lnvolvlng
all workers, wheLher agrlculLural or non-agrlculLural:
3. lf accompanled wlLh a clalm for relnsLaLemenL, Lhose cases
LhaL workers may flle lnvolvlng wages, raLes of pay, hours of
work and oLher Lerms and condlLlons of employmenL,
3. Cases arlslng from any vlolaLlon of ArLlcle 264 of Lhls Code,
lncludlng quesLlons lnvolvlng Lhe legallLy of sLrlkes and lockouLs,
and
6. LxcepL clalms for Lmployees CompensaLlon, Soclal SecurlLy,
Medlcare and maLernlLy beneflLs, all oLher clalms arlslng from
employer-employee relaLlons, lncludlng Lhose of persons ln
domesLlc or household servlce, lnvolvlng an amounL exceedlng
flve Lhousand pesos (3,000.00) regardless of wheLher
accompanled wlLh a clalm for relnsLaLemenL.
Art. 128. ;$%$()#$07 0*& .*,)#'.4.*( 9):.#5 - (a) 1he SecreLary
of Labor and LmploymenL or hls duly auLhorlzed represenLaLlves,
lncludlng labor regulaLlon offlcers, shall have access Lo
employers records and premises at any time of the day or night
whenever work ls belng underLaken Lhereln, and Lhe rlghL Lo
copy Lherefrom, Lo quesLlon any employee and lnvesLlgaLe any
facL, condlLlon or maLLer whlch may be necessary Lo deLermlne
vlolaLlons or whlch may ald ln Lhe enforcemenL of Lhls Code and
of any labor law, wage order or rules and regulaLlons lssued
pursuanL LhereLo.

(b) noLwlLhsLandlng Lhe provlslons of ArLlcles 129 and 217 of
Lhls Code Lo Lhe conLrary, and ln cases where Lhe relaLlonshlp of
employer-employee sLlll exlsLs, Lhe SecreLary of Labor and
LmploymenL or hls duly auLhorlzed represenLaLlves shall have
Lhe power Lo lssue compllance orders Lo glve effecL Lo Lhe labor
sLandards provlslons of Lhls Code and oLher labor leglslaLlon
based on Lhe flndlngs of labor employmenL and enforcemenL
offlcers or lndusLrlal safeLy englneers made ln Lhe course of
lnspecLlon. 1he SecreLary or hls duly auLhorlzed represenLaLlves
shall lssue wrlLs of execuLlon Lo Lhe approprlaLe auLhorlLy for Lhe
enforcemenL of Lhelr orders, excepL ln cases where Lhe
employer conLesLs Lhe flndlngs of Lhe labor employmenL and
enforcemenL offlcer and ralses lssues supporLed by
documenLary proofs whlch were noL consldered ln Lhe course of
lnspecLlon. An order lssued by Lhe duly auLhorlzed
represenLaLlve of Lhe SecreLary of Labor and LmploymenL under
Lhls ArLlcle may be appealed Lo Lhe laLLer. ln case sald order
lnvolves a moneLary award, an appeal by Lhe employer may be
perfecLed only upon Lhe posLlng of a cash or sureLy bond lssued
by a repuLable bondlng company duly accredlLed by Lhe
SecreLary of Labor and LmploymenL ln Lhe amounL equlvalenL Lo
Lhe moneLary award ln Lhe order appealed from.

(c) 1he SecreLary of Labor and LmploymenL may llkewlse order
sLoppage of work or suspenslon of operaLlons of any unlL or
deparLmenL of an esLabllshmenL when non-compllance wlLh Lhe
law or lmplemenLlng rules and regulaLlons poses grave and

lmmlnenL danger Lo Lhe healLh and safeLy of workers ln Lhe
workplace. WlLhln LwenLy-four hours, a hearlng shall be
conducLed Lo deLermlne wheLher an order for Lhe sLoppage of
work or suspenslon of operaLlons shall be llfLed or noL. ln case
Lhe vlolaLlon ls aLLrlbuLable Lo Lhe faulL of Lhe employer, he shall
pay Lhe employees concerned Lhelr salarles or wages durlng Lhe
perlod of such sLoppage of work or suspenslon of operaLlon.

(d) lL shall be unlawful for any person or enLlLy Lo obsLrucL,
lmpede, delay or oLherwlse render lneffecLlve Lhe orders of Lhe
SecreLary of Labor and LmploymenL or hls duly auLhorlzed
represenLaLlves lssued pursuanL Lo Lhe auLhorlLy granLed under
Lhls ArLlcle, and no lnferlor courL or enLlLy shall lssue Lemporary
or permanenL ln[uncLlon or resLralnlng order or oLherwlse
assume [urlsdlcLlon over any case lnvolvlng Lhe enforcemenL
orders lssued ln accordance wlLh Lhls ArLlcle.

(e) Any governmenL employee found gullLy of vlolaLlon of, or
abuse of auLhorlLy, under Lhls ArLlcle shall, afLer approprlaLe
admlnlsLraLlve lnvesLlgaLlon, be sub[ecL Lo summary dlsmlssal
from Lhe servlce.
(f) 1he SecreLary of Labor and LmploymenL may, by approprlaLe
regulaLlons, requlre employers Lo keep and malnLaln such
employmenL records as may be necessary ln ald of hls vlslLorlal
and enforcemenL powers under Lhls Code.
Art. 129. <.')=.#> ), :08.%? %$497. 4)*.> '70$4% 0*& )(-.#
1.*.,$(%. - upon complalnL of any lnLeresLed parLy, Lhe 8eglonal
ulrecLor of Lhe ueparLmenL of Labor and LmploymenL or any of
Lhe duly auLhorlzed hearlng offlcers of Lhe ueparLmenL ls
empowered, Lhrough summary proceedlng and afLer due noLlce,
Lo hear and declde any maLLer lnvolvlng Lhe recovery of wages
and oLher moneLary clalms and beneflLs, lncludlng legal lnLeresL,
owlng Lo an employee or person employed ln domesLlc or
household servlce or househelper under Lhls Code, arlslng from
employer-employee relaLlons: rovlded, 1haL such complalnL
does noL lnclude a clalm for relnsLaLemenL: rovlded furLher,
1haL Lhe aggregaLe money clalms of each employee or
househelper does noL exceed llve Lhousand pesos (3,000.00).
1he 8eglonal ulrecLor or hearlng offlcer shall declde or resolve
Lhe complalnL wlLhln LhlrLy (30) calendar days from Lhe daLe of
Lhe flllng of Lhe same. Any sum Lhus recovered on behalf of any
employee or househelper pursuanL Lo Lhls ArLlcle shall be held ln
a speclal deposlL accounL by, and shall be pald on order of, Lhe
SecreLary of Labor and LmploymenL or Lhe 8eglonal ulrecLor
dlrecLly Lo Lhe employee or househelper concerned. Any such
sum noL pald Lo Lhe employee or househelper because he
cannoL be locaLed afLer dlllgenL and reasonable efforL Lo locaLe
hlm wlLhln a perlod of Lhree (3) years, shall be held as a speclal
fund of Lhe ueparLmenL of Labor and LmploymenL Lo be used
excluslvely for Lhe amelloraLlon and beneflL of workers. Any
declslon or resoluLlon of Lhe 8eglonal ulrecLor or hearlng offlcer
pursuanL Lo Lhls provlslon may be appealed on Lhe same
grounds provlded ln ArLlcle 223 of Lhls Code, wlLhln flve (3)
calendar days from recelpL of a copy of sald declslon or
resoluLlon, Lo Lhe naLlonal Labor 8elaLlons Commlsslon whlch
shall resolve Lhe appeal wlLhln Len (10) calendar days from Lhe
submlsslon of Lhe lasL pleadlng requlred or allowed under lLs
rules. 1he SecreLary of Labor and LmploymenL or hls duly
auLhorlzed represenLaLlve may supervlse Lhe paymenL of unpald
wages and oLher moneLary clalms and beneflLs, lncludlng legal
lnLeresL, found owlng Lo any employee or househelper under
Lhls Code.
Art. 294. @.*07($.%5- LxcepL as oLherwlse provlded ln Lhls Code,
or unless Lhe acLs complalned of hlnge on a quesLlon of
lnLerpreLaLlon or lmplemenLaLlon of amblguous provlslons of an
exlsLlng collecLlve bargalnlng agreemenL, any vlolaLlon of Lhe
provlslons of Lhls Code declared Lo be unlawful or penal ln
naLure shall be punlshed wlLh a flne of noL less Lhan Cne
1housand esos (1,000.00) nor more Lhan 1en 1housand esos
(10,000.00) or lmprlsonmenL of noL less Lhan Lhree monLhs nor
more Lhan Lhree years, or boLh such flne and lmprlsonmenL aL
Lhe dlscreLlon of Lhe courL. ln addlLlon Lo such penalLy, any allen
found gullLy shall be summarlly deporLed upon compleLlon of
servlce of senLence. Any provlslon of law Lo Lhe conLrary
noLwlLhsLandlng, any crlmlnal offense punlshed ln Lhls Code,
shall be under Lhe concurrenL [urlsdlcLlon of Lhe Munlclpal or
ClLy CourLs and Lhe CourLs of llrsL lnsLance.
Art. 29S. A-) 0#. 7$017. :-.* ')44$((.& 1> )(-.# (-0*
*0("#07 9.#%)*5 - lf Lhe offense ls commlLLed by a corporaLlon,
LrusL, flrm, parLnershlp, assoclaLlon or any oLher enLlLy, Lhe
penalLy shall be lmposed upon Lhe gullLy offlcer or offlcers of
such corporaLlon, LrusL, flrm, parLnershlp, assoclaLlon or enLlLy.
Art. 296. B,,.*%.%5 - Cffenses penallzed under Lhls Code and Lhe
rules and regulaLlons lssued pursuanL LhereLo shall prescrlbe ln
Lhree (3) years. All unfalr labor pracLlce arlslng from 8ook v shall
be flled wlLh Lhe approprlaLe agency wlLhln one (1) year from
accrual of such unfalr labor pracLlce, oLherwlse, Lhey shall be
forever barred.
Art. 297. C)*.> '70$4%5- All money clalms arlslng from
employer-employee relaLlons accrulng durlng Lhe effecLlvlLy of
Lhls Code shall be flled wlLhln Lhree (3) years from Lhe Llme Lhe
cause of acLlon accrued, oLherwlse Lhey shall be forever barred.
All money clalms accrulng prlor Lo Lhe effecLlvlLy of Lhls Code
shall be flled wlLh Lhe approprlaLe enLlLles esLabllshed under Lhls
Code wlLhln one (1) year from Lhe daLe of effecLlvlLy, and shall
be processed or deLermlned ln accordance wlLh Lhe
lmplemenLlng rules and regulaLlons of Lhe Code, oLherwlse, Lhey
shall be forever barred. Workmens compensation claims
accrulng prlor Lo Lhe effecLlvlLy of Lhls Code and durlng Lhe
perlod from november 1, 1974 up Lo uecember 31, 1974, shall
be flled wlLh Lhe approprlaLe reglonal offlces of Lhe ueparLmenL

of Labor noL laLer Lhan March 31, 1973, oLherwlse, Lhey shall
forever be barred. 1he clalms shall be processed and ad[udlcaLed
ln accordance wlLh Lhe law and rules aL Lhe Llme Lhelr causes of
acLlon accrued.
Art. 298. D*%($("($)* ), 4)*.> '70$4%. - Money clalms speclfled
ln Lhe lmmedlaLely precedlng ArLlcle shall be flled before Lhe
approprlaLe enLlLy lndependenLly of Lhe crlmlnal acLlon LhaL may
be lnsLlLuLed ln Lhe proper courLs. endlng Lhe flnal
deLermlnaLlon of Lhe merlLs of money clalms flled wlLh Lhe
approprlaLe enLlLy, no clvll acLlon arlslng from Lhe same cause of
acLlon shall be flled wlLh any courL. 1hls provlslon shall noL apply
Lo employees compensaLlon case whlch shall be processed and
deLermlned sLrlcLly ln accordance wlLh Lhe perLlnenL provlslons
of Lhls Code.

Art. III Sec 11. lree access Lo Lhe courLs and quasl-[udlclal bodles
and adequaLe legal asslsLance shall noL be denled Lo any person
by reason of poverLy.
Art. III Sec 16. All persons shall have Lhe rlghL Lo a speedy
dlsposlLlon of Lhelr cases before all [udlclal, quasl-[udlclal, or
admlnlsLraLlve bodles.


Lmployer
Worker ConLracLor
6. WCkk kLLA1ICNSnI

A. DLIINI1ICN: LMLCLk AND LMLCLL
Art. 97 Def|n|t|on - As used ln Lhls LlLle: (a) Person means an
lndlvldual, parLnershlp, assoclaLlon, corporaLlon, buslness LrusL,
legal represenLaLlve, or any organlzed group of persons.
(b) Lmp|oyer includes any person acting directly or indirectly
ln Lhe lnLeresL of an employer ln relaLlon Lo an employee and
shall lnclude Lhe CovernmenL and all lLs branches, subdlvlslon
and lnsLrumenLallLles, all governmenL owned and conLrolled
corporaLlons and lnsLlLuLlons, as well as non-proflL prlvaLe
lnsLlLuLlons or organlzaLlons.
(c) Lmp|oyee includes any individual employed by an
employer.
Art. 173 Def|n|t|on of terms: As used ln Lhls 1lLle (Employees
CompensaLlon and SLaLe lnsurance lund), unless Lhe conLexL
lndlcaLes oLherwlse:
(f) Employer means any person, naLural or [urldlcal, employlng
Lhe servlces of Lhe employee.
(g) Employee means any person compulsorlly covered by Lhe
CSlS under CommonwealLh AcL 186 as amended, lncludlng
members of Lhe Armed lorces of Lhe hlllpplnes and any person
employed as casual, emergency, Lemporary, subsLlLuLe or
conLracLual, or any person compulsorlly covered by SSS under
8epubllc AcL 1161 as amended.
(h) Person means any lndlvldual, parLnershlp, flrm,
assoclaLlon, LrusL, corporaLlon, or legal represenLaLlve Lhereof.

Art. 212 Def|n|t|ons
(e)"mployet" lncludes any person acLlng ln Lhe lnLeresL of an
employer, dlrecLly or lndlrecLly. 1he Lerm shall noL lnclude any
labor organlzaLlon or any of lLs offlcers or agenLs excepL when
acLlng as employer
(f)"mployee" lncludes any person ln Lhe employ of an
employer. 1he Lerm shall noL be llmlLed Lo Lhe employees of a
parLlcular employer, unless Lhe Code so expllclLly sLaLes. lL shall
lnclude any lndlvldual whose work has ceased as a resulL of or ln
connecLlon wlLh any currenL labor dlspuLe or because of any
unfalr labor pracLlce lf he has noL obLalned any oLher
subsLanLlally equlvalenL and regular employmenL.

under ArL. 212, Lhe deflnlLlon of employee lncludes Lhose who
have ceased Lo be employees as a consequence of a labor
dlspuLe. CessaLlon of work due Lo a sLrlke or lockouL, or Lo
dlsmlssal or suspenslon consLlLuLlng unfalr labor pracLlce does
noL lLself affect the employee status. Hence, upon
relnsLaLemenL of an employee whose dlsmlssal was due Lo an
unfalr labor pracLlce, he ls enLlLled Lo backwages.

Lmployer-Lmployee 8elaLlonshlp

Lmployer-Lmployee 8elaLlonshlp:
ArL. 106
Labor only relaLlonshlp
aymenL [olnLly and severally llable

1. IAC1CkS]1LS1
CLSAk LIkIC VS. WILMLk GLNCVIA (2011)
l: Wllmer Cenovla was hlred as a sLudlo manager by Cesar Llrlo
for Celkor. A few days afLer he sLarLed worklng, C asked hlm Lo
produce an album for Cs daughLer. When W flnlshed Lhe album,
wlLh Lhe cover song flnally alrlng on radlo, W remlnded C abouL
Lhelr compensaLlon as a composer/producer. C denled Lhe
compensaLlon, lnsulLed hlm ln Lhe process and evenLually
LermlnaLed W.
P: 4 fold LesL Lo be consldered as an employee: (1) Lhe selecLlon
and engagemenL of Lhe employee, (2) paymenL of wages , (3)
power of dismissal, (4) the employers power to control the
employee wlLh respecL Lo Lhe means and meLhods by whlch Lhe
work ls Lo be accompllshed. 1he 4
Lh
ls Lhe mosL lmporLanL
elemenL. 1he power Lo conLrol refers merely Lo Lhe exlsLence of
Lhe power. lL ls noL essenLlal for Lhe employer Lo acLually
supervlse Lhe performance of duLles of Lhe employee.


MAk1ICICSLM8LAN1L AND DU8kICkILAk VS. CA (2011)
l: MarLlcloSemblanLe and uubrlckllar worked aL a cockplL. M
was a maslador, whlle u was a senLenslador. Cne day, boLh of
Lhem were denled enLry lnLo Lhe cockplL upon lnsLrucLlons of
the owners and were informed that their services werent
needed anymore.
P: 4 fold LesL (agaln). M and u are noL employees aL Lhe cockplL.
1hey were llke lndependenL conLracLors slnce Lhey can offer
servlces ln oLher cockplLs. (1) Lhey were noL selecLed by Lhe
owners, (2) Lhelr compensaLlon were pald ouL of arrlba, whlch
was noL from Lhe owners, (3) Lhey were [usL denled enLry Lo Lhe
premlses, (4) Lhey relled on Lhelr own experLlse and knowledge.

1.A. CCN1kCL 1LS1 VS LCCNCMIC kLALI1
1LS1
CkC2CC V. III1n DIVISICN, CA (2008)
l: Wllhelmlna Crozco was a wrlLer ln Lhe LlfesLyle SecLlon of ul.
She rellglously submlLLed her arLlcles every week and recelved
compensaLlon of 230.00 - laLer lncreased Lo 300.00 - for
every column published. One day, Ws column appeared in the
ul for Lhe lasL Llme. She flled a complalnL for lllegal dlsmlssal
P: W ls an lndependenL conLracLor. SC agaln upheld Lhe 4-fold
LesL. 1he CourL also acknowledged anoLher LesL whlch was Lhe
economic reality test The economic realities prevailing within
Lhe acLlvlLy or beLween Lhe parLles are examlned, Laklng lnLo
conslderaLlon Lhe LoLallLy of clrcumsLances surroundlng Lhe Lrue
naLure of Lhe relaLlonshlp beLween Lhe parLles. 1hls ls
approprlaLe especlally when Lhere ls no wrlLLen agreemenL or
conLracL on whlch Lo base Lhe relaLlonshlp. 1he benchmark of
economlc reallLy ln analyzlng posslble employmenL relaLlonshlps
for purposes of applylng Lhe Labor Code oughL Lo be Lhe
economlc dependence of Lhe worker on hls employer. ln Lhls
case, Ws main occupation was a womens rights advocate
working on various NGOs
2. 8UkDLN CI kCVING LMLCLk-
LMLCLL kLLA1ICNSnI VIS-A-VIS
8UkDLN CI kCVING ILLLGALI1 CI
DISMISSAL
8I1C IAVILk VS. IL ACL CCkCkA1ICN (2012)
l: 8lLoy !avler alleged LhaL he was an employee of lly Ace and
served by cleanlng and arranglng canned lLems aL Lhe
warehouse and aL Llmes serve as a pahlnanLe Lo Lhe dellvery
vehlcles. Pe was noL lssued any lu nor paysllp by Lhe company.
Cne day, he reporLed Lo work buL was noL allowed Lo enLer Lhe
premlses by Lhe securlLy gurad upon Lhe lnsLrucLlon of hls
superlor, 8uben Cng.
P: 1he onus probandl falls on one who clalms Lo be an employee
Lo esLabllsh or subsLanLlaLe such clalm by Lhe requlslLe quanLum
of evidence. Whoever claims entitlement to the benefits
provided by law should establish his or her right thereto. B was
noL able Lo prove hls employmenL. Mere presence aL a work
place does noL mean LhaL one ls an employee.
3. ILkCING 1nL CCkCkA1L VLIL
1IMC1LCSAkCNA VS. NLkC (2012)
l: 1lmoLeoSarona was a securlLy guard aL ScepLre securlLy
agency. Cne day, Lhe CperaLlon Manager asked hlm hlm Lo
submlL a reslgnaLlon leLLer as a requlremenL for applylng a
poslLlon aL 8oyale SecurlLy Agency (Lhe new ScepLre) and Lo flll
out Royales application form. After being transferred from one
cllenL Lo anoLher, he was lnformed LhaL he would no longer e
glven any asslgnmenL per lnsLrucLlon of Lhe Ceneral manager of
ScepLre. 1 flled for lllegal dlsmlssal
P: 1he docLrlne of plerclng Lhe corporaLe vell applles only ln 3
baslc areas: (1) defeaL of publlc convenlence as when Lhe
corporaLe flcLlon ls used as a vehlcle for Lhe evaslon of an
exlsLlng obllgaLlon (2) fraud cases or when Lhe corporaLe enLlLy
ls used Lo [usLlfy a wrong, proLecL fraud, or defend a crlme, or (3)
alLer ego cases, where a corporaLlon ls merely a farce slnce lL ls a
mere alLer ego or buslness condulL of a person, or where Lhe
corporaLlon ls so organlzed and conLrolled and lLs affalrs are so
conducLed as Lo make lL merely an lnsLrumenLallLy, agency,
condulL or ad[uncL of anoLher corporaLlon. 1he wrong dolng
musL be clearly and convlnclngly esLabllshed and cannoL be
merely presumed. ln Lhls case, Lhere was ample evldence LhaL
8oyale ls a mere conLlnuaLlon or successor of ScepLre and
fraudulent objectives are behind Royales incorporation and the
Ts subsequent employment therein.
C. INDLLNDLN1 CCN1kAC1Ck AND LA8Ck-
CNL CCN1kAC1Ck
Art. 106. 3)*(#0'()# )# %"1')*(#0'()#. - Whenever an employer
enLers lnLo a conLracL wlLh anoLher person for Lhe performance
of the formers work, the employees of the contractor and of the
latters subcontractor, lf any, shall be pald ln accordance wlLh
Lhe provlslons of Lhls Code.
ln Lhe evenL LhaL Lhe conLracLor or subconLracLor falls Lo pay Lhe
wages of hls employees ln accordance wlLh Lhls Code, Lhe
employer shall be [olnLly and severally llable wlLh hls conLracLor
Law 113 Labor SLandards Law | rof. uaway age 1S of 90

or subconLracLor Lo such employees Lo Lhe exLenL of Lhe work
performed under Lhe conLracL, ln Lhe same manner and exLenL
LhaL he ls llable Lo employees dlrecLly employed by hlm.
1he SecreLary of Labor and LmploymenL may, by approprlaLe
regulaLlons, resLrlcL or prohlblL Lhe conLracLlng-ouL of labor Lo
proLecL Lhe rlghLs of workers esLabllshed under Lhls Code. ln so
prohlblLlng or resLrlcLlng, he may make approprlaLe dlsLlncLlons
beLween labor-only conLracLlng and [ob conLracLlng as well as
dlfferenLlaLlons wlLhln Lhese Lypes of conLracLlng and deLermlne
who among Lhe parLles lnvolved shall be consldered Lhe
employer for purposes of Lhls Code, Lo prevenL any vlolaLlon or
clrcumvenLlon of any provlslon of Lhls Code.
1here ls "lobot-ooly" conLracLlng where Lhe person supplylng
workers Lo an employer does noL have subsLanLlal caplLal or
lnvesLmenL ln Lhe form of Lools, equlpmenL, machlnerles, work
premlses, among oLhers, and Lhe workers recrulLed and placed
by such person are performlng acLlvlLles whlch are dlrecLly
relaLed Lo Lhe prlnclpal buslness of such employer. ln such cases,
Lhe person or lnLermedlary shall be consldered merely as an
agenL of Lhe employer who shall be responslble Lo Lhe workers
ln Lhe same manner and exLenL as lf Lhe laLLer were dlrecLly
employed by hlm.
Art. 107. D*&$#.'( .497)>.#5- 1he provlslons of Lhe lmmedlaLely
precedlng arLlcle shall llkewlse apply Lo any person, parLnershlp,
assoclaLlon or corporaLlon whlch, noL belng an employer,
conLracLs wlLh an lndependenL conLracLor for Lhe performance
of any work, Lask, [ob or pro[ecL.
Art. 108. @)%($*8 ), 1)*&5- An employer or lndlrecL employer
may requlre Lhe conLracLor or subconLracLor Lo furnlsh a bond
equal Lo Lhe cosL of labor under conLracL, on condlLlon LhaL Lhe
bond wlll answer for Lhe wages due Lhe employees should Lhe
conLracLor or subconLracLor, as Lhe case may be, fall Lo pay Lhe
same.
Art. 109. E)7$&0#> 7$01$7$(>5- 1he provlslons of exlsLlng laws Lo Lhe
conLrary noLwlLhsLandlng, every employer or lndlrecL employer
shall be held responslble wlLh hls conLracLor or subconLracLor for
any vlolaLlon of any provlslon of Lhls Code. lor purposes of
deLermlnlng Lhe exLenL of Lhelr clvll llablllLy under Lhls ChapLer,
Lhey shall be consldered as dlrecL employers.
3 Ak1ILS INVCLVLD:
1. rlnclpal - any employer who puLs ouL or farms ouL a [ob,
servlce or work Lo a conLracLor/subconLracLor.
2. ConLracLor or subconLracLor any person or enLlLy engaged
ln a leglLlmaLe conLracLlng or subconLracLlng arrangemenL.
3. ConLracLual employee one employed by a conLracLor Lo
perform or compleLe a [ob work or servlce pursuanL Lo an
arrangemenL beLween Lhe laLLer and Lhe prlnclpal.
Ceneral rule: no employer-employee relaLlonshlp beLween Lhe
prlnclpal and conLracLual employee.
LxcepLlon: lf Lhe conLracLlng arrangemenL ls noL leglLlmaLe
labor-only conLracLlng or conLravene publlc pollcy.
ln labor-only conLracLlng, Lhere ls only a represenLaLlve Lo
recrulL or place people Lo be employed, supervlsed and pald by
anoLher, who ls Lhe employer.
CommlLmenL of Lhe conLracLor ls noL Lo do and dellver a [ob,
work or servlce buL merely Lo flnd and supple people.
Why prohlblLed: aLLempL Lo evade Lhe obllgaLlons of an
employer.
LSSLN1IAL LLLMLN1:
1. ArrangemenL ls merely Lo recrulL, supply or place workers Lo
perform a [ob, work or servlce for a prlnclpal.
Conflrmlng elemenLs:
2. Lack of subsLanLlal caplLal or lnvesLmenL and performance of
activities directly related to the principals main business
3. ConLracLor does noL exerclse conLrol over Lhe performance of
Lhe employees
Substantial capital or investment - refers Lo caplLal sLocks and
subscrlbed caplLallzaLlon ln Lhe case of corporaLlons, Lools,
equlpmenL, lmplemenLs , machlnerles and work premlses,
acLually and dlrecLly used by Lhe conLracLor or subconLracLor ln
Lhe performance or compleLlon of Lhe [ob, work or servlce
conLracLed ouL.
Law does noL requlre 8C1P subsLanLlal caplLal and lnvesLmenL ln
Lhe form of Lools, equlpmenL, machlnerles, eLc. lL ls sufflclenL
LhaL subsLanLlal caplLal be proved.
3 mllllon ln pald-up caplLal sLocks/shares for
corporaLlons, parLnershlps, or cooperaLlves.
3 mllllon neL worLh for a slngle proprleLorshlp.

Right to control refers Lo Lhe rlghL reserved Lo Lhe person
for whom Lhe servlce of Lhe conLracLual workers are performed,
Lo deLermlne noL only Lhe end Lo be achleved buL also Lhe
manners and means Lo be used ln reachlng LhaL end.


C.1. 1kILA1LkAL kLLA1ICNSnI
DLAk1MLN1 CkDLk NC. 18-A, SLkILS CI 2011
Sect|on 3. uefloltloo of tetms. 1he followlng Lerms as used ln
Lhese 8ules, shall mean:
(m) 1r||atera| ke|at|onsh|p refers to the relationship in a
conLracLlng or subconLracLlng arrangemenL where Lhere ls a
conLracL for a speclflc [ob, work or servlce beLween Lhe prlnclpal
and Lhe conLracLor, and a conLracL of employmenL beLween Lhe
conLracLor and lLs workers. 1here are Lhree (3) parLles lnvolved
ln Lhese arrangemenLs: Lhe prlnclpal who decldes Lo farm ouL a
[ob, work or servlce Lo a conLracLor, Lhe conLracLor who has Lhe
capaclLy Lo lndependenLly underLake Lhe performance of Lhe
[ob, work or servlce, and Lhe conLracLual workers engaged by
Lhe conLracLor Lo accompllsh Lhe [ob, work or servlce.
Sect|on S. 6#$70(.#07 #.70($)*%-$9 $* ')*(#0'($*8 0##0*8.4.*(%F
E)7$&0#> 7$01$7$(>. ln leglLlmaLe conLracLlng or subconLracLlng
arrangemenL Lhere exlsLs:
An employer-employee relaLlonshlp beLween Lhe conLracLor and
Lhe employees lL engaged Lo perform Lhe speclflc [ob, work or
servlce belng conLracLed, and
A conLracLual relaLlonshlp beLween Lhe prlnclpal and Lhe
conLracLor as governed by Lhe provlslons of Lhe Clvll Code.

LeglLlmaLe ConLracLor Labor-only conLracLlng
8eglsLered (buL noL concluslve.
8efer Lo norkls case)
no subsLanLlal
caplLal/lnvesLmenL of Lhe
prlnclpal buL Lhe work done
by Lhe employees are
lmporLanL Lo Lhe operaLlon of
Lhe company
ulsLlncL and lndependenL work
of Lhe employee
1he conLracLors does noL
exerclse Lhe rlghL Lo conLrol
SubsLanLlal caplLal/lnvesLmenL
of Lhe prlnclpal

Servlce agreemenL all rlghLs
and beneflLs under Lhe labor
laws

nIL. 8ANk CI CCMMUNICA1ICNS VS. NLkC (1986)
l: 8C and CLSl enLered lnLo a leLLer agreemenL whlch CLSl
undertook to provide Temporary Services to PBC consisting of
11 messengers, lncludlng 8lcardo Crplada. 9 monLhs laLer, 8C
requesLed CLSl Lo wlLhdraw Rs assignment because his services
were no longer needed. R filed a complaint for illegal
dlsmlssal agalnsL 8C.
P: 1he underLaklng glven by CLSl ln favor of Lhe bank was noL
Lhe performance of a speclflc [ob buL Lo provlde Lhe bank wlLh a
cerLaln number of persons able Lo carry ouL Lhe work of
messengers. CLSl ls noL a parcel dellvery company buL a
recrulLmenL and placemenL corporaLlon. CLSl was engaged ln
labor-only conLracLlng. 1he "labor-only" conLracLor (Lhe person
or lnLermedlary) ls consldered "merely as an agenL of Lhe
employer." 1he employer ls made by law responslble Lo Lhe
employees of Lhe "labor only" conLracLor as lf such employees
had been dlrecLly employed by Lhe employer.
SAN MIGULL CCk. VS. SLMILLANC L1 AL (2010)
l: vlcenLe Semlllano and 3 oLhers were hlred by AMCC on
dlfferenL daLes and were asslgned Lo work for SMC 8oLLllng lanL
where Lhey worked for more Lhan 6 monLhs. SMC enLered lnLo
a ConLracL of Servlces wlLh AMCC deslgnaLlng AMCC as Lhe
employer of v eL al. As a resulL, v eL al. were noL able Lo clalm
Lhe rlghLs and beneflLs ordlnarlly accorded a regular employee
of SMC ( lncludlng Lhe 13Lh monLh pay). LvenLually, Lhey were
noL allowed Lo enLer Lhe premlses of SMC and was lnsLrucLed Lo
walL for furLher lnsLrucLlons. 1hey walLed for a monLh buL dld
noL hear from SMC agaln.
P:ConLrol LesL: an lndependenL conLracLor carrles on an
lndependenL buslness and underLakes Lhe conLracL work on hls
own accounL, under hls own responslblllLy, accordlng Lo hls own
manner and meLhod, and free from Lhe conLrol and dlrecLlon of
hls employer or prlnclpal ln all maLLers connecLed wlLh Lhe
performance of Lhe work excepL as Lo Lhe resulLs
Lhereof. AMCC had no subsLanLlal caplLal, nor dld lL show any
proof LhaL lL had any oLher cusLomer oLher Lhan SMC. AMCC
has no lndependenL buslness.
2. LLLMLN1S CI LA8Ck-CNL CCN1kAC1ING
Sect|on 6. @#)-$1$($)* 080$*%( 701)#G)*7> ')*(#0'($*8. Labor-
only conLracLlng ls hereby declared prohlblLed. lor Lhls purpose,
labor only conLracLlng shall refer Lo an arrangemenL where:
1he conLracLor does noL have subsLanLlal caplLal or lnvesLmenLs
ln Lhe form of Lools, equlpmenL, machlnerles, work premlses,
among oLhers, and Lhe employees recrulLed and placed are
performlng acLlvlLles whlch are usually necessary or deslrable Lo
Lhe operaLlon of Lhe company, or dlrecLly relaLed Lo Lhe maln
buslness of Lhe prlnclpal wlLhln a deflnlLe or predeLermlned
perlod, regardless of wheLher such [ob, work or servlce ls Lo be
performed or compleLed wlLhln or ouLslde Lhe premlses of Lhe
prlnclpal, or

1he conLracLor does noL exerclse Lhe rlghL Lo conLrol over Lhe
performance of Lhe work of Lhe employee.

CLICAM-kGC IN1LkNA1ICNAL CCk. VS. LDGAkDC
CCNCLCICN (2012)

l: Ldgardo Concepclon was an all-around facLory worker for
olyfoam. AfLer worklng for almosL 6 years, he was suddenly
Lold by Lhe securlLy guard LhaL he could no longer punch ln Llme
as he was already dlsmlssed due Lo lnfracLlon of a company rule.
L flled a complalnL for lllegal dlsmlssal where Cram[e lnLervened
and clalmed LhaL lL was Lhe one LhaL hlred L as a packer and
asslgned hlm Lo olyfoam.

P: Labor only conLracLlng ls an arrangemenL where Lhe
conLracLor merely recrulLs, supplles or places workers Lo
perform a [ob, work or servlce for a prlnclpal. 1he conLracLor
does noL have subsLanLlal caplLal and employees recrulLed are
performlng acLlvlLles whlch are dlrecLly relaLed Lo Lhe maln
buslness of Lhe prlnclpal. 1he LesL of lndependenL
conLracLorshlp: WheLher one clalmlng Lo be an lndependenL
conLracLor has conLracLed Lo do Lhe work accordlng Lo hls own
meLhod and wlLhouL belng sub[ecL Lo Lhe conLrol of Lhe
employer excepL only as Lo Lhe resulLs of Lhe work. ln Lhe case aL
bar, Gramjes only role was to to recruit persons to work for
olyfoam. lrom Lhe facLs (6 years of servlce, recelvlng a copy of
Polyfoams rules), it is clear that E was under the control of
olyfoam.

NCkkIS 1kADING VS. ICAIN 8ULNAVIS1A (2012)

l: !oaqln8uenavlsLa eL al worked for norkls 1radlng. Powever,
norkls regarded Lhem as members of ASAkA, a cooperaLlve
organlzed under Lhe CooperaLlve Code of Lhe hlllpplnes. 1he
machlnes ! eL al used were all properLles of norkls. 1hey were
noL accorded regular sLaLus. ! eL al flled a case agalnsL norkls
and ASAkA for labor only conLracLlng and non-paymenL of mln.
wage.

P: LlemenLs of labor only conLracLlng: (a) Lhe conLracLor or
subconLracLor does noL have subsLanLlal caplLal or lnvesLmenL Lo
acLually perform Lhe [ob, work, or servlce under lLs own accounL
and responslblllLy, and (b) Lhe employees recrulLed, supplled or
placed by such conLracLor or subconLracLor perform acLlvlLles
whlch are dlrecLly relaLed Lo Lhe maln buslness of Lhe prlnclpal.
ASAkA, Lhough organlzed under Lhe CooperaLlve Code of Lhe
hlls. And ls a duly reglsLered cooperaLlve, falled Lo prove LhaL lL
had subsLanLlal caplLal or lnvesLmenL sufflclenL Lo enable lL Lo
perform Lhe funcLlons of an lndependenL conLracLor.
D. kLGIS1kA1ICN CI CCN1kAC1CkS

Sect|on 14. C0*&0()#> <.8$%(#0($)* 0*& <.8$%(#> ), /.8$($40(.
3)*(#0'()#%. ConslsLenL wlLh Lhe auLhorlLy of Lhe SecreLary of
Labor and LmploymenL Lo resLrlcL or prohlblL Lhe conLracLlng ouL
of labor Lo proLecL Lhe rlghLs of workers, lL shall be mandaLory
for all persons or enLlLles, lncludlng cooperaLlves, acLlng as
conLracLors, Lo reglsLer wlLh Lhe 8eglonal Cfflce of Lhe
ueparLmenL of Labor and LmploymenL (uCLL) where lL
prlnclpally operaLes.

Ia||ure to reg|ster sha|| g|ve r|se to the presumpt|on that the
contractor |s engaged |n |abor-on|y contract|ng.

Accordlngly, Lhe reglsLraLlon sysLem governlng conLracLlng
arrangemenLs and lmplemenLed by Lhe 8eglonal Cfflces of Lhe
uCLL ls hereby esLabllshed, wlLh Lhe 8ureau of Worklng
CondlLlons (8WC) as Lhe cenLral reglsLry.

Sect|on 1S. <.H"$#.4.*(% ,)# #.8$%(#0($)*. 1he appllcaLlon for
reglsLraLlon as a conLracLor shall be flled aL Lhe uCLL 8eglonal
Cfflce ln Lhe reglon where lL seeks Lo prlnclpally operaLe. 1he
appllcanL shall provlde ln Lhe appllcaLlon form Lhe followlng
lnformaLlon:
(a) 1he name and buslness address of Lhe appllcanL and Lhe
areas where lL seeks Lo operaLe,
(b) 1he names and addresses of offlcers, lf Lhe appllcanL ls a
corporaLlon, parLnershlp, cooperaLlve or a labor organlzaLlon,

(c) The nature of the applicants business and the industry or
lndusLrles where Lhe appllcanL seeks Lo operaLe,

(d) 1he number of regular workers and Lhe LoLal workforce,

(e) 1he llsL of cllenLs, lf any, Lhe number of personnel asslgned Lo
each cllenL, lf any, and Lhe servlces provlded Lo Lhe cllenL,

(f) 1he descrlpLlon of Lhe phases of Lhe conLracL, lncludlng Lhe
number of employees covered ln each phase, where
approprlaLe, and

(g) roof of compllance wlLh subsLanLlal caplLal requlremenL as
deflned ln SecLlon 3(l) of Lhese 8ules.
1he appllcaLlon shall be supporLed by:
(a) A cerLlfled Lrue copy of a cerLlflcaLe of reglsLraLlon of flrm or
buslness name from Lhe SecurlLles and Lxchange Commlsslon
(SLC), ueparLmenL of 1rade and lndusLry (u1l), CooperaLlve
uevelopmenL AuLhorlLy (CuA), or from Lhe uCLL lf Lhe appllcanL

ls a labor organlzaLlon,
(b) A cerLlfled Lrue copy of Lhe llcense or buslness permlL lssued
by Lhe local governmenL unlL or unlLs where Lhe conLracLor
operaLes,
(c) A cerLlfled llsLlng, wlLh proof of ownershlp or lease conLracL,
of faclllLles, Lools, equlpmenL, premlses lmplemenLs,
machlnerles and work premlses, LhaL are acLually and dlrecLly
used by Lhe conLracLor ln Lhe performance or compleLlon of Lhe
[ob, work or servlce conLracLed ouL. ln addlLlon, Lhe appllcanL
shall submlL a phoLo of Lhe offlce bulldlng and premlses where lL
holds offlce,
(d) A copy of audlLed flnanclal sLaLemenLs lf Lhe appllcanL ls a
corporaLlon, parLnershlp, cooperaLlve or a labor organlzaLlon, or
copy of Lhe laLesL l18 lf Lhe appllcanL ls a sole proprleLorshlp,
and
(e) A sworn dlsclosure LhaL Lhe reglsLranL, lLs offlcers and owners
or prlnclpal sLockholders or any one of Lhem, has noL been
operaLlng or prevlously operaLlng as a conLracLor under a
dlfferenL buslness name or enLlLy or wlLh pendlng cases of
vlolaLlons of Lhese 8ules and/or labor sLandards, or wlLh a
cancelled reglsLraLlon. ln case any of Lhe foregolng has a pendlng
case, a copy of Lhe complalnL and Lhe laLesL sLaLus of Lhe case
shall be aLLached.

1he appllcaLlon shall be verlfled. lL shall lnclude a uCLL
cerLlflcaLlon of aLLendance Lo orlenLaLlon semlnar on Lhese 8ules
and an underLaklng LhaL Lhe conLracLor shall ablde by all
appllcable labor laws and regulaLlons.

D. 1. LIILC1 CI NCN-CCMLIANCL
Sec. 14, par. 2 sopto
L. SCLIDAk LIA8ILI1 CI INDIkLC1
LMLCLk]DIkLC1 LMLCLk
Sect|on 27. I,,.'(% ), ,$*&$*8 ), 701)#G)*7> ')*(#0'($*8 0*&J)#
=$)70($)* ), E.'($)*% K5 L )# M ), (-. <"7.%. A flndlng by
compeLenL auLhorlLy of labor-only conLracLlng shall render Lhe
prlnclpal [olnLly and severally llable wlLh Lhe conLracLor Lo Lhe
laLLer's employees, ln Lhe same manner and exLenL LhaL Lhe
prlnclpal ls llable Lo employees dlrecLly hlred by hlm/her, as
provlded ln ArLlcle 106 of Lhe Labor Code, as amended.

A flndlng of commlsslon of any of Lhe prohlblLed acLlvlLles ln
SecLlon 7, or vlolaLlon of elLher SecLlons 8 or 9 hereof, shall
render Lhe prlnclpal Lhe dlrecL employer of Lhe employees of Lhe
conLracLor or subconLracLor, pursuanL Lo ArLlcle 109 of Lhe Labor
Code, as amended.

LC Art|c|e 109. E)7$&0#> 7$01$7$(>. 1he provlslons of exlsLlng
laws Lo Lhe conLrary noLwlLhsLandlng, every employer or lndlrecL
employer shall be held responslble wlLh hls conLracLor or
subconLracLor for any vlolaLlon of any provlslon of Lhls Code. lor
purposes of deLermlnlng Lhe exLenL of Lhelr clvll llablllLy under
Lhls ChapLer, Lhey shall be consldered as dlrecL employers.

SULkICk ACkAGING CCk. VS. AkNLL8ALAGSA, L1.
AL. (2012)
l: SC hlred Lancer SLafflng and Servlces neLwork Lo provlde
servlces Lo lLs buslness. Arnel8alagsay eL al were employed
under Lancer for SC for 4 monLhs. A eL al flled a complalnL
agalnsL SC for underpaymenL of wages, non-paymenL of
premlum pay for worked C1, resL days and non-paymenL of
salary. SC quesLloned Lhelr llablllLy and argued LhaL A eL al are
not their employees but Lancers and that they paid Lancer ln
lump sum for Lhe servlces.
H: Lancer was not an independent contractor but a labor-only
conLracLor because lL had lnadequaLe caplLal lnvesLmenL and
Lhus, could noL malnLaln lLs day-Lo0day operaLlons. A flndlng
that a contractor is a labor-only contractor is equivalent to
declarlng LhaL Lhere ls an employer-employee relaLlonshlp
beLween Lhe prlnclpal (SC) and Lhe employees of Lhe conLracLor
(Lancer). 1he prlnclpal (SC) ls Lhen consldered Lhe real
employer. SC ls Lherefore solldarlly llable for A et als unpaid
money clalms.
LAkWA V. LICLC DL CAGAAN (2006)
l: Lparwa SecurlLy and !anlLorlal Servlces and Llceo de Cagayan
unlverslLy had a conLracL for securlLy servlces. LuCu ls Lo pay
Lparwa 3,000 per guard per monLh and geL 11 securlLy guards.
1he 11 securlLy guards flled a complalnL agalnsL Lparwa and
LuCu for underpaymenL of salary. LuCu made a cross-clalm and
prayed LhaL Lparwa should relmburse LuCu for any paymenL Lo
Lhe securlLy guards.
P: Lparwa may clalm relmbursemenL from LuCu for any
paymenL lL may make Lo Lhe securlLy guards. Powever, LuCu
cannoL clalm any relmbursemenL from Lparwa for any paymenL
lL may make Lo Lhe securlLy guards.
7. LMLCMLN1 CCN1kAC1
GLC8AL kLSCUkCL ICk CU1SCUkCLD WCkkLkS
(GkCW) INC., L1C. VS. A8kAnAM VLLASCC AND
NANL11L VLLASCC (2012)
l: Sps. velasco was hlred by MS 8eLall Lhrough C8CW as clrcus
performer and clrcus performer asslsLanL aL a sLore ln kuwalL.

1helr conLracL sLlpulaLed LhaL Lhey are Lo work only
48hrs/monLh. Powever, when Sps velasco arrlved ln kuwalL,
Lhey were Lold LhaL lL was only a Lypo and lL should be 48
hrs/week. When Lhe Sps. WenL Lo 1halland on an approved
leave, Lhey acLually dld noL reLurn Lo kuwalL and lnsLead, wenL
back Lo Lhe hlllpplnes and sLayed here desplLe Lhe demands of
Lhelr company. When Lhey were dlsmlssed, Lhey flled a
complalnL for consLrucLlve dlsmlssal
P: CbllgaLlons arlslng from conLracL, llke an employmenL
conLracL have Lhe force of law beLween Lhe conLracLed parLles
and should be complled wlLh ln good falLh. 1he CourL looked aL
conLracLs of oLher enLerLalners and found ouL LhaL Lhe klnd of
[ob normally enLalls 48hrs/week work hours. A clrcus performers
are consldered enLerLalners, Lhus, Lhe parLles musL have meanL
LhaL Lhey are Lo work for 48 hrs/week. lnLenL and noL Lher LexL
of a conLracL prevalls. Also, Lhe Sps were lnformed of Lhe error
and desplLe worklng for more Lhan half a year where Lhey could
have complalned, Lhey dld noLhlng and wlLhouL any proLesL.


II. LA8Ck S1ANDAkDS LAW

1. LMLCMLN1 CLICILS,
kLCkUI1MLN1 AND
LACLMLN1 CI WCkkLkS AND
AGLNCILS

A. LMLCMLN1 CLICILS
Art. 3. ueclototloo of boslc pollcy. - 1he SLaLe shall afford
proLecLlon Lo labor, promoLe full employmenL, ensure equal
work opporLunlLles regardless of sex, race or creed and regulaLe
Lhe relaLlons beLween workers and employers. 1he SLaLe shall
assure Lhe rlghLs of workers Lo self-organlzaLlon, collecLlve
bargalnlng, securlLy of Lenure, and [usL and humane condlLlons
of work.
Art. 12 5totemeot of objectlves. - lL ls Lhe pollcy of Lhe SLaLe:
(a) 1o promoLe and malnLaln a sLaLe of full employmenL Lhrough
lmproved manpower Lralnlng, allocaLlon and uLlllzaLlon
(f) 1o sLrengLhen Lhe neLwork of publlc employmenL offlces and
raLlonallze Lhe parLlclpaLlon of Lhe prlvaLe secLor ln Lhe
recrulLmenL and placemenL of workers, locally and overseas, Lo
serve naLlonal developmenL ob[ecLlves

Art II Sec. 9. 1he SLaLe shall promoLe a [usL and dynamlc soclal
order LhaL wlll ensure Lhe prosperlLy and lndependence of Lhe
naLlon and free Lhe people from poverLy Lhrough pollcles LhaL
provlde adequaLe soclal servlces, promoLe full employmenL, a
rlslng sLandard of llvlng, and an lmproved quallLy of llfe for all.

kA 8042
Sec. 2(a). ln Lhe pursulL of an lndependenL forelgn pollcy and
whlle conslderlng naLlonal soverelgnLy, LerrlLorlal lnLegrlLy,
naLlonal lnLeresL and Lhe rlghL Lo self-deLermlnaLlon paramounL
ln lLs relaLlons wlLh oLher sLaLes, Lhe SLaLe shall, aL all Llmes,
uphold Lhe dlgnlLy of lLs clLlzens wheLher ln counLry or overseas,
ln general, and llllplno mlgranL workers, ln parLlcular,
conLlnuously monlLor lnLernaLlonal convenLlons, adopL/be
slgnaLory Lo and raLlfy Lhose LhaL guaranLee proLecLlon Lo our
mlgranL workers, and endeavor Lo enLer lnLo bllaLeral
agreemenLs wlLh counLrles hosLlng overseas llllplno workers.
(b). 1he SLaLe shall afford full proLecLlon Lo labor, local and
overseas, organlzed and unorganlzed, and promoLe full
employmenL and equallLy of employmenL opporLunlLles for all.
1owards Lhls end, Lhe SLaLe shall provlde adequaLe and Llmely
soclal, economlc and legal servlces Lo llllplno mlgranL workers.
(c). Whlle recognlzlng Lhe slgnlflcanL conLrlbuLlon of llllplno
mlgranL workers Lo Lhe naLlonal economy Lhrough Lhelr forelgn
exchange remlLLances, Lhe SLaLe does noL promoLe overseas
employmenL as a means Lo susLaln economlc growLh and
achleve naLlonal developmenL. 1he exlsLence of Lhe overseas
employmenL program resLs solely on Lhe assurance LhaL Lhe
dlgnlLy and fundamenLal human rlghLs and freedoms of Lhe
llllplno clLlzens shall noL, aL any Llme, be compromlsed or
vlolaLed. 1he SLaLe, Lherefore, shall conLlnuously creaLe local
employmenL opporLunlLles and promoLe Lhe equlLable
dlsLrlbuLlon of wealLh and Lhe beneflLs of developmenL
(g). 1he SLaLe recognlzes LhaL Lhe mosL effecLlve Lool for
empowermenL ls Lhe possesslon of skllls by mlgranL workers.
1he governmenL shall provlde Lhem free and accesslble skllls
developmenL and enhancemenL programs. ursuanL Lo Lhls and
as soon as pracLlcable, Lhe governmenL shall deploy and/or
allow Lhe deploymenL only of skllled llllplno workers
Sec 4. ueploymeot of Mlqtoot wotkets. - 1he SLaLe shall allow
Lhe deploymenL of overseas llllplno workers only ln counLrles
where Lhe rlghLs of llllplno mlgranL workers are proLecLed. 1he
governmenL recognlzes any of Lhe followlng as a guaranLee on
Lhe parL of Lhe recelvlng counLry for Lhe proLecLlon of Lhe rlghLs
of overseas llllplno workers:
a. lL has exlsLlng labor and soclal laws proLecLlng Lhe rlghLs
of workers, lncludlng mlgranL workers,
b. lL ls a slgnaLory Lo and/or a raLlfler of mulLllaLeral
convenLlons, declaraLlons or resoluLlons relaLlng Lo Lhe
proLecLlon of workers, lncludlng mlgranL workers, and
c. lL has concluded a bllaLeral agreemenL or arrangemenL
wlLh Lhe governmenL on Lhe proLecLlon of Lhe rlghLs of
overseas llllplno Workers:

ltovlJeJ, 1haL Lhe recelvlng counLry ls Laklng poslLlve, concreLe
measures Lo proLecL Lhe rlghLs of mlgranL workers ln furLherance
of any of Lhe guaranLees under subparagraphs (a), (b) and (c)
hereof. ln Lhe absence of a clear showlng LhaL any of Lhe
aforemenLloned guaranLees exlsLs ln Lhe counLry of desLlnaLlon
of Lhe mlgranL workers, no permlL for deploymenL shall be
lssued by Lhe hlllpplne Cverseas LmploymenL AdmlnlsLraLlon
(CLA). 1he members of Lhe CLA Covernlng 8oard who
acLually voLed ln favor of an order allowlng Lhe deploymenL of
mlgranL workers wlLhouL any of Lhe aforemenLloned guaranLees
shall suffer Lhe penalLles of removal or dlsmlssal from servlce
wlLh dlsquallflcaLlon Lo hold any appolnLlve publlc offlce for flve
(3) years,
lurLher, Lhe governmenL offlclal or employee responslble for Lhe
lssuance of Lhe permlL or for allowlng Lhe deploymenL of
mlgranL workers ln vlolaLlon of Lhls secLlon and ln dlrecL
conLravenLlon of an order by Lhe CLA Covernlng 8oard
prohlblLlng deploymenL shall be meLed Lhe same penalLles ln
Lhls secLlon.
lor Lhls purpose, Lhe ueparLmenL of lorelgn Affalrs, Lhrough lLs
forelgn posLs, shall lssue a cerLlflcaLlon Lo Lhe CLA, speclfylng
Lhereln Lhe perLlnenL provlslons of Lhe recelvlng counLry's
labor/soclal law, or Lhe convenLlon/declaraLlon/resoluLlon, or
Lhe bllaLeral agreemenL/arrangemenL whlch proLecL Lhe rlghLs of
mlgranL workers. 1he SLaLe shall also allow Lhe deploymenL of
overseas llllplno workers Lo vessels navlgaLlng Lhe forelgn seas
or Lo lnsLallaLlons locaLed offshore or on hlgh seas whose
owners/employers are compllanL wlLh lnLernaLlonal laws and
sLandards LhaL proLecL Lhe rlghLs of mlgranL workers. 1he SLaLe
shall llkewlse allow Lhe deploymenL of overseas llllplno workers
Lo companles and conLracLors wlLh lnLernaLlonal operaLlons:
rovlded, 1haL Lhey are compllanL wlLh sLandards, condlLlons
and requlremenLs, as embodled ln Lhe employmenL conLracLs
prescrlbed by Lhe CLA and ln accordance wlLh lnLernaLlonally-
accepLed sLandards.
Sec S. 1etmlootloo ot 8oo oo ueploymeot. - noLwlLhsLandlng Lhe
provlslons of SecLlon 4 hereof, ln pursulL of Lhe naLlonal lnLeresL
or when publlc welfare so requlres, Lhe CLA Covernlng 8oard,
afLer consulLaLlon wlLh Lhe ueparLmenL of lorelgn Affalrs, may,
aL any Llme, LermlnaLe or lmpose a ban on Lhe deploymenL of
mlgranL workers.

8. LMLCMLN1 AGLNCILS
8.1. kIVA1L SLC1Ck AGLNCILS AND
LN1I1ILS
A. Ak1ILS
1. WCkkLk
Art. 13 (a). "wotket" means any member of Lhe labor force,
wheLher employed or unemployed.

kA 8042 Sec 3(a). "Cverseas llllplno worker" refers Lo a person
who ls Lo be engaged, ls engaged or has been engaged ln a
remuneraLed acLlvlLy ln a sLaLe of whlch he or she ls noL a clLlzen
or on board a vessel navlgaLlng Lhe forelgn seas oLher Lhan a
governmenL shlp used for mlllLary or non-commerclal purposes
or on an lnsLallaLlon locaLed offshore or on Lhe hlgh seas, Lo be
used lnLerchangeably wlLh mlgranL worker.
2. kIVA1L LMLCMLN1 AGLNC
Art. 13(c) "ltlvote fee-cbotqloq employmeot oqeocy" means any
person or enLlLy engaged ln recrulLmenL and placemenL of
workers for a fee whlch ls charged, dlrecLly or lndlrecLly, from
Lhe workers or employers or boLh.
(d) "llceose" means a documenL lssued by Lhe ueparLmenL of
Labor auLhorlzlng a person or enLlLy Lo operaLe a prlvaLe
employmenL agency.
Art. 12 (f). 5totemeot of objectlves. - lL ls Lhe pollcy of Lhe SLaLe:
1o sLrengLhen Lhe neLwork of publlc employmenL offlces and
Art. 14 (a). mploymeot ptomotloo. - 1he SecreLary of Labor
shall have Lhe power and auLhorlLy: 1o organlze and esLabllsh
new employmenL offlces ln addlLlon Lo Lhe exlsLlng employmenL
offlces under Lhe ueparLmenL of Labor as Lhe need arlses
3. kIVA1L kLCkUI1MLN1 LN1I1
Art. 13 (e) "ltlvote tectoltmeot eotlty" means any person or
assoclaLlon engaged ln Lhe recrulLmenL and placemenL of
workers, locally or overseas, wlLhouL charglng, dlrecLly or
lndlrecLly, any fee from Lhe workers or employers.
(f) "Aotbotlty" means a documenL lssued by Lhe ueparLmenL of
Labor auLhorlzlng a person or assoclaLlon Lo engage ln
recrulLmenL and placemenL acLlvlLles as a prlvaLe recrulLmenL
enLlLy.


8. kLCkUI1MLN1 AND LACLMLN1
1. LCCAL LMLCMLN1
Art. 13 (b) "kectoltmeot ooJ plocemeot" refers Lo any acL of
canvasslng, enllsLlng, conLracLlng, LransporLlng, uLlllzlng, hlrlng
or procurlng workers, and lncludes referrals, conLracL servlces,
promlslng or adverLlslng for employmenL, locally or abroad,
wheLher for proflL or noL: rovlded, 1haL any person or enLlLy
whlch, ln any manner, offers or promlses for a fee, employmenL
Lo Lwo or more persons shall be deemed engaged ln recrulLmenL
and placemenL.

2. CVLkSLAS LMLCMLN1
Sect|on 6.uefloltloo. lor purposes of Lhls AcL, lllegal
recrulLmenL shall mean any acL of canvasslng, enllsLlng,
conLracLlng, LransporLlng, uLlllzlng, hlrlng, or procurlng workers
and lncludes referrlng, conLracL servlces, promlslng or
adverLlslng for employmenL abroad, wheLher for proflL or noL,
when underLaken by non-llcensee or non-holder of auLhorlLy
conLemplaLed under ArLlcle 13(f) of resldenLlal uecree no. 442,
as amended, oLherwlse known as Lhe Labor Code of Lhe
hlllpplnes: rovlded, 1haL any such non-llcensee or non-holder
who, ln any manner, offers or promlses for a fee employmenL
abroad Lo Lwo or more persons shall be deemed so engaged. lL
shall llkewlse lnclude Lhe followlng acLs, wheLher commlLLed by
any person, wheLher a non-llcensee, non-holder, llcensee or
holder of auLhorlLy:
a. 1o charge or accepL dlrecLly or lndlrecLly any amounL
greaLer Lhan LhaL speclfled ln Lhe schedule of allowable fees
prescrlbed by Lhe SecreLary of Labor and LmploymenL, or Lo
make a worker pay or acknowledge any amounL greaLer
Lhan LhaL acLually recelved by hlm as a loan or advance,
b. 1o furnlsh or publlsh any false noLlce or lnformaLlon or
documenL ln relaLlon Lo recrulLmenL or employmenL,
c. 1o glve any false noLlce, LesLlmony, lnformaLlon or
documenL or commlL any acL of mlsrepresenLaLlon for Lhe
purpose of securlng a llcense or auLhorlLy under Lhe Labor
Code, or for Lhe purpose of documenLlng hlred workers
wlLh Lhe CLA, whlch lnclude Lhe acL of reprocesslng
workers Lhrough a [ob order LhaL perLalns Lo nonexlsLenL
work, work dlfferenL from Lhe acLual overseas work, or
work wlLh a dlfferenL employer wheLher reglsLered or noL
wlLh Lhe CLA,
d. 1o lnclude or aLLempL Lo lnduce a worker already employed
Lo qulL hls employmenL ln order Lo offer hlm anoLher unless
Lhe Lransfer ls deslgned Lo llberaLe a worker from
oppresslve Lerms and condlLlons of employmenL,
e. 1o lnfluence or aLLempL Lo lnfluence any person or enLlLy
noL Lo employ any worker who has noL applled for
employmenL Lhrough hls agency or who has formed, [olned
or supporLed, or has conLacLed or ls supporLed by any unlon
or workers' organlzaLlon,
f. 1o engage ln Lhe recrulLmenL or placemenL of workers ln
[obs harmful Lo publlc healLh or morallLy or Lo Lhe dlgnlLy of
Lhe 8epubllc of Lhe hlllpplnes,
g. 1o obsLrucL or aLLempL Lo obsLrucL lnspecLlon by Lhe
SecreLary of Labor and LmploymenL or by hls duly
auLhorlzed represenLaLlve,
h. 1o fall Lo submlL reporLs on Lhe sLaLus of employmenL,
placemenL vacancles, remlLLance of forelgn exchange
earnlngs, separaLlon from [obs, deparLures and such oLher
maLLers or lnformaLlon as may be requlred by Lhe SecreLary
of Labor and LmploymenL,
l. 1o subsLlLuLe or alLer Lo Lhe pre[udlce of Lhe worker,
employmenL conLracLs approved and verlfled by Lhe
ueparLmenL of Labor and LmploymenL from Lhe Llme of
acLual slgnlng Lhereof by Lhe parLles up Lo and lncludlng Lhe
perlod of Lhe explraLlon of Lhe same wlLhouL Lhe approval
of Lhe ueparLmenL of Labor and LmploymenL,
[. lor an offlcer or agenL of a recrulLmenL or placemenL
agency Lo become an offlcer or member of Lhe 8oard of any
corporaLlon engaged ln Lravel agency or Lo be engaged
dlrecLly or lndlrecLly ln Lhe managemenL of Lravel agency,
k. 1o wlLhhold or deny Lravel documenLs from appllcanL
workers before deparLure for moneLary or flnanclal
conslderaLlons, or for any oLher reasons, oLher Lhan Lhose
auLhorlzed under Lhe Labor Code and lLs lmplemenLlng
rules and regulaLlons,
l. lallure Lo acLually deploy a conLracLed worker wlLhouL valld
reason as deLermlned by Lhe ueparLmenL of Labor and
LmploymenL:
m. lallure Lo relmburse expenses lncurred by Lhe worker ln
connecLlon wlLh hls documenLaLlon and processlng for
purposes of deploymenL, ln cases where Lhe deploymenL
does noL acLually Lake place wlLhouL Lhe worker's faulL.
lllegal recrulLmenL when commlLLed by a syndlcaLe or ln
large scale shall be consldered an offense lnvolvlng
economlc saboLage, and
n. 1o allow a non-llllplno clLlzen Lo head or manage a llcensed
recrulLmenL/mannlng agency.
lllegal recrulLmenL ls deemed commlLLed by a syndlcaLe lf
carrled ouL by a group of Lhree (3) or more persons consplrlng or
confederaLlng wlLh one anoLher. lL ls deemed commlLLed ln large
scale lf commlLLed agalnsL Lhree (3) or more persons lndlvldually
or as a group.
ln addlLlon Lo Lhe acLs enumeraLed above, lL shall also be
unlawful for any person or enLlLy Lo commlL Lhe followlng
prohlblLed acLs:

1. CranL a loan Lo an overseas llllplno worker wlLh lnLeresL
exceedlng elghL percenL (8) per annum, whlch wlll be
used for paymenL of legal and allowable placemenL fees
and make Lhe mlgranL worker lssue, elLher personally or
Lhrough a guaranLor or accommodaLlon parLy, posLdaLed
checks ln relaLlon Lo Lhe sald loan,

2. lmpose a compulsory and excluslve arrangemenL whereby
an overseas llllplno worker ls requlred Lo avall of a loan
only from speclflcally deslgnaLed lnsLlLuLlons, enLlLles or
persons,

3. 8efuse Lo condone or renegoLlaLe a loan lncurred by an
overseas llllplno worker afLer Lhe laLLer's employmenL
conLracL has been premaLurely LermlnaLed Lhrough no faulL
of hls or her own,
an overseas llllplno worker ls requlred Lo undergo healLh
examlnaLlons only from speclflcally deslgnaLed medlcal
cllnlcs, lnsLlLuLlons, enLlLles or persons, excepL ln Lhe case of
a seafarer whose medlcal examlnaLlon cosL ls shouldered
by Lhe prlnclpal/shlp owner,
an overseas llllplno worker ls requlred Lo undergo Lralnlng,
semlnar, lnsLrucLlon or schoollng of any klnd only from
speclflcally deslgnaLed lnsLlLuLlons, enLlLles or persons,
excepL for recommendaLory Lralnlngs mandaLed by
prlnclpals/shlp owners where Lhe laLLer shoulder Lhe cosL of
such Lralnlngs,
6. lor a suspended recrulLmenL/mannlng agency Lo engage ln
any klnd of recrulLmenL acLlvlLy lncludlng Lhe processlng of
pendlng workers' appllcaLlons, and
7. lor a recrulLmenL/mannlng agency or a forelgn
prlnclpal/employer Lo pass on Lhe overseas llllplno worker
or deducL from hls or her salary Lhe paymenL of Lhe cosL of
lnsurance fees, premlum or oLher lnsurance relaLed
charges, as provlded under Lhe compulsory worker's
lnsurance coverage.

1he persons crlmlnally llable for Lhe above offenses are Lhe
prlnclpals, accompllces and accessorles. ln case of [urldlcal
persons, Lhe offlcers havlng ownershlp, conLrol, managemenL or
dlrecLlon of Lhelr buslness who are responslble for Lhe
commlsslon of Lhe offense and Lhe responslble
employees/agenLs Lhereof shall be llable.
ln Lhe flllng of cases for lllegal recrulLmenL or any of Lhe
prohlblLed acLs under Lhls secLlon, Lhe SecreLary of Labor and
LmploymenL, Lhe CLA AdmlnlsLraLor or Lhelr duly auLhorlzed
represenLaLlves, or any aggrleved person may lnlLlaLe Lhe
correspondlng crlmlnal acLlon wlLh Lhe approprlaLe offlce. lor
Lhls purpose, Lhe affldavlLs and LesLlmonles of operaLlves or
personnel from Lhe ueparLmenL of Labor and LmploymenL,
CLA and oLher law enforcemenL agencles who wlLnessed Lhe
acLs consLlLuLlng Lhe offense shall be sufflclenL Lo prosecuLe Lhe
accused.
ln Lhe prosecuLlon of offenses punlshable under Lhls secLlon, Lhe
publlc prosecuLors of Lhe ueparLmenL of !usLlce shall collaboraLe
wlLh Lhe anLl-lllegal recrulLmenL branch of Lhe CLA and, ln
cerLaln cases, allow Lhe CLA lawyers Lo Lake Lhe lead ln Lhe
prosecuLlon. 1he CLA lawyers who acL as prosecuLors ln such
cases shall be enLlLled Lo recelve addlLlonal allowances as may
be deLermlned by Lhe CLA AdmlnlsLraLor.
1he flllng of an offense punlshable under Lhls AcL shall be
wlLhouL pre[udlce Lo Lhe flllng of cases punlshable under oLher
exlsLlng laws, rules or regulaLlons.
nCN. A1kICIA A. S1C. 1CMAS VS. kL SALAC, L1. AL.
(2012)
l: ConsolldaLed cases perLalnlng Lo Lhe consLlLuLlonallLy of 8A
8042 (MlgranL Workers and Cverseas llllplno AcL of 1993)
H: Sec. 29 & 30 (DOLEs task to deregulate the business of
handling recruitment and migration of OFWs) MooL and
Academlc because lL ls now repealed by 8A 9422 (CLA now has
Lhe Lask Lo regulaLe prlvaLe secLor parLlclpaLlon ln Lhe
recrulLmenL and llcenslng and reglsLraLlon)
Sec. 6 allegedly vague because lL falled Lo dlsLlngulsh beLween
llcensed and non-llcensed recrulLers. SC: 1he dlsLlncLlon ls LhaL
llcensed recrulLers are gullLy CnL? ls Lhey do prohlblLed acLs
whlle non-llcensed recrulLers are gullLy WCn Lhey commlL Lhe
prohlblLed acLs.
Sec. 7 allegedly, Lhe unlform penalLles are Loo sweeplng as lL
falled Lo make a dlsLlncLlon as Lo Lhe serlousness of Lhe acLs . SC:
Law considered the fact that OFWs works outside borders and
immediate protection of the Phils. It is under the States power
Lo lmpose such penalLles
Sec. 9 allegedly vlolaLed Lhe rlghLs of Lhe parLles Lo due
process. SC: Sec. 15 of Rule 110 o f the RoC states subject to
existing laws regarding the filing of criminal cases. RA 8042 is
consldered a speclal law
Sec. 10 Lhe clause LhaL mandaLes LhaL recrulLmenL/placemenL
agencys corporate officers are solidarily liable with the
corporaLlon for clalms and damages vlolaLes Lhe rlghL of Lhe
corporaLe offlcers Lo due process. SC: llablllLy of corporaLe
offlcers ls noL auLomaLlc. 1here musL be a flndlng LhaL Lhey were
remlss ln dlrecLlng Lhe affalrs of Lhelr company.


C. ALLCWLD AND kC1LC1LD LN1I1ILS
1. ALLCWLD kIVA1L AGLNCILS AND LN1I1ILS
Art. 16. ltlvote tectoltmeot. - LxcepL as provlded ln ChapLer ll of
Lhls 1lLle, no person or enLlLy oLher Lhan Lhe publlc employmenL
offlces, shall engage ln Lhe recrulLmenL and placemenL of
workers.
Art. 2S. ltlvote sectot pottlclpotloo lo tbe tectoltmeot ooJ
plocemeot of wotkets. - ursuanL Lo naLlonal developmenL
ob[ecLlves and ln order Lo harness and maxlmlze Lhe use of
prlvaLe secLor resources and lnlLlaLlve ln Lhe developmenL and
lmplemenLaLlon of a comprehenslve employmenL program, Lhe
prlvaLe employmenL secLor shall parLlclpaLe ln Lhe recrulLmenL
and placemenL of workers, locally and overseas, under such
guldellnes, rules and regulaLlons as may be lssued by Lhe
SecreLary of Labor.
Art. 18. 8oo oo Jltect-bltloq. - no employer may hlre a llllplno
worker for overseas employmenL excepL Lhrough Lhe 8oards and
enLlLles auLhorlzed by Lhe SecreLary of Labor. ulrecL-hlrlng by
members of Lhe dlplomaLlc corps, lnLernaLlonal organlzaLlons
and such oLher employers as may be allowed by Lhe SecreLary of
Labor ls exempLed from Lhls provlslon.
2. kCnI8I1LD 8USINLSS AGLNCILS AND
LN1I1LS
2.A. 1kAVLL AGLNCILS
Art. 26 1ravel agencles prohlblLed Lo recrulL 1ravel agencles
and sales agencles of alrllne companles are prohlblLed from
engaglng ln Lhe buslness of recrulLmenL and placemenL of
workers for overseas employmenL wheLher for proflL or noL.
2. 8. DIkLC1 nIkING
Art. 18 8an on dlrecL hlrlng. no employer may hlre a llllplno
worker for overseas employmenL excepL Lhrough Lhe 8oards and
enLlLles auLhorlzed by Lhe SecreLary of Labor. ulrecL-hlrlng by
members of Lhe dlplomaLlc corps, lnLernaLlonal organlzaLlons
and such oLher employers as may be allowed by Lhe SecreLary of
Labor ls exempLed from Lhls provlslon.

nCkNALLS VS. NLkC (2001)
l: Marlo Pornales eL. al. were senL by !LAC lnLernaLlonal
ManagemenL and ConLracLor Servlces as flshermen for Mln lee
llshery whlle Lhe owner of SLep-up LmploymenL Agency
supervlsed Lhem. uue Lo lnhumane condlLlons (lnadequaLe food
and waLer, malLreaLmenL by capLaln, lack of medlcal asslsLance,
22-hour work shlfLs wlLhouL pay), M eL al escaped from Lhe
vessel. M flled a complalnL for non-paymenL of wages agalnsL
!LAC. !LAC conLended LhaL Lhey were a mere Lravel agency and
SLep-up was a compleLe sLranger Lo Lhem. M presenLed
evldences such as Lhe phoLocoples of Lhe bank checks lssued ln
favor of hls relaLlves and Lhe agreemenL LhaL Lhelr exlsLlng loans
are deducLed from Lhelr salarles
H: Ms evidences are strong and proves there is a relationship
beLween !LAC and SLep-up. !LAC ls sLlll llable Lo M even lf Lhere
ls no employmenL conLracL beLween hlm and SLep-up Agency
LhaL had been approved by Lhe CLA. non-compllance wlLh Lhe
CLA 8ules and 8egulaLlons cannoL be a basls ln escaplng from
llablllLy arlslng from an employer-employee relaLlonshlp. 1here
ls sLlll a relaLlonshlp LhaL exlsLs, ln facL, Lhls makes !LAC open Lo
sancLlons (cancellaLlon or suspenslon of llcense) for Lhe
vlolaLlon.
2002 CLA kULLS AND kLGULA1ICNS, Ak1 II, kULL I
Sect|on 2.ulspoollflcotloo. 1he followlng are noL quallfled Lo
engage ln Lhe buslness of recrulLmenL and placemenL of llllplno
workers overseas:
a. 1ravel agencles and sales agencles of alrllne companles,
b. Cfflcers or members of Lhe 8oard of any corporaLlon or
members ln a parLnershlp engaged ln Lhe buslness of a
Lravel agency,
c. CorporaLlons and parLnershlps, when any of lLs offlcers,
members of Lhe board or parLners, ls also an offlcer,
member of Lhe board or parLner of a corporaLlon or
parLnershlp engaged ln Lhe buslness of a Lravel agency,
d. ersons, parLnershlps or corporaLlons whlch have
derogaLory records, such as buL noL llmlLed Lo Lhe
followlng:

1. 1hose cerLlfled Lo have derogaLory record or
lnformaLlon by Lhe naLlonal 8ureau of lnvesLlgaLlon or
by Lhe AnLl-lllegal 8ecrulLmenL 8ranch of Lhe CLA,
2. 1hose agalnsL whom probable cause or prlma facle
flndlng of gullL for lllegal recrulLmenL or oLher relaLed
cases exlsLs,
3. 1hose convlcLed for lllegal recrulLmenL or oLher relaLed
cases and/or crlmes lnvolvlng moral LurplLude, and
4. 1hose agencles whose llcenses have been prevlously
revoked or cancelled by Lhe AdmlnlsLraLlon for
vlolaLlon of 8A 8042, u 442 as amended and Lhelr
lmplemenLlng rules and regulaLlons as well as Lhese
rules and regulaLlons.

All appllcanLs for lssuance/renewal of llcense shall be requlred Lo
submlL clearances from Lhe naLlonal 8ureau of lnvesLlgaLlon and

AnLl-lllegal 8ecrulLmenL 8ranch, CLA, lncludlng clearances for
Lhelr respecLlve offlcers and employees.
e. Any offlclal or employee of Lhe uCLL, CLA, CWWA, ulA
and oLher governmenL agencles dlrecLly lnvolved ln Lhe
lmplemenLaLlon of 8.A. 8042, oLherwlse known as MlgranL
Workers and Cverseas llllplno AcL of 1993 and/or any of
hls/her relaLlves wlLhln Lhe fourLh clvll degree of
consangulnlLy or afflnlLy, and

f. ersons or parLners, offlcers and ulrecLors of corporaLlons
whose llcenses have been prevlously cancelled or revoked
for vlolaLlon of recrulLmenL laws
D. GCVLkNMLN1 1LCnNIULS CI
kLGULA1ICN kIVA1L kLCkUI1MLN1
D. 1. LICLNSING]UALIIICA1ICNS CI
ALICAN1S
A. CI1I2LNSnI
Art. 27 C|t|zensh|p kequ|rement - Cnly llllplno clLlzens or
corporaLlons, parLnershlps or enLlLles aL leasL sevenLy flve
percenL (73) of Lhe auLhorlzed and voLlng caplLal sLock of
whlch ls owned and conLrolled by llllplno clLlzens shall be
permlLLed Lo parLlclpaLe ln Lhe recrulLmenL and placemenL of
workers locally or overseas.
8. CAI1ALI2A1ICN
Art. 28 All appllcanLs for auLhorlLy Lo hlre or renewal of llcense
Lo recrulL are requlred Lo have such subsLanLlal caplLallzaLlon as
deLermlned by Lhe SecreLary of Labor.

ku|e II, Sec. 2 Ooollflcotloo - An appllcanL for a llcense Lo
operaLe a prlvaLe recrulLmenL and placemenL agency musL
possess Lhe followlng:
A. MusL be a llllplno clLlzen, lf slngle proprleLorshlp. ln case of
parLnershlp or a corporaLlon, aL leasL sevenLy-flve percenL
(73) of Lhe auLhorlzed caplLal sLock musL be owned and
conLrolled by llllplno clLlzens,
8. MusL have a mlnlmum neLworLh of 200,000.00 ln Lhe case
of slngle proprleLorshlp and parLnershlp or a mlnlmum
pald-up caplLal of 300,000.00 ln Lhe case of a
corporaLlon.

C. VALIDI1 CI LICLNSL

ku|e II Sec. S. rovlslonal Llcense. AppllcanLs for new llcense
shall be lssued a provlslonal llcense whlch shall be valld for a
llmlLed perlod of one (1) year wlLhln whlch Lhe appllcanL should
be able Lo comply wlLh lLs underLaklng Lo deploy 100 workers Lo
lLs new prlnclpal. 1he llcense of a complylng agency shall be
upgraded Lo a full llcense enLlLllng Lhem Lo anoLher Lhree years
of operaLlon. non-complylng agencles wlll be noLlfled of Lhe
explraLlon of Lhelr llcense.

ku|e II Sec. 6. valldlLy of Lhe Llcense. LxcepL ln case of a
provlslonal llcense, every llcense shall be valld for four (4) years
from Lhe daLe of lssuance unless sooner cancelled, revoked or
suspended for vlolaLlon of appllcable hlllpplne law, Lhese rules
and oLher perLlnenL lssuances. Such llcense shall be valld only aL
Lhe place/s sLaLed Lhereln and when used by Lhe llcensed
person, parLnershlp or corporaLlon.

D. NCN-1kANSILkA8ILI1
Art. 29 Non-transferab|||ty of ||cense or author|ty no llcense
or auLhorlLy shall be used dlrecLly or lndlrecLly by any person
oLher Lhan Lhe one ln whose favor lL was lssued or aL any place
oLher Lhan LhaL sLaLed ln Lhe llcense or auLhorlLy be Lransferred,
conveyed or asslgned Lo any oLher person or enLlLy. Any Lransfer
of buslness address, appolnLmenL or deslgnaLlon of any agenL or
represenLaLlve lncludlng Lhe esLabllshmenL of addlLlonal offlces
anywhere shall be sub[ecL Lo Lhe prlor approval of Lhe
ueparLmenL of Labor.
ku|e II Sec. 7. non-1ransferablllLy of Llcense. no llcense shall be
Lransferred, conveyed or asslgned Lo any person, parLnershlp or
corporaLlon. lL shall noL be used dlrecLly or lndlrecLly by any
person, parLnershlp or corporaLlon oLher Lhan Lhe one ln whose
favor lL was lssued. ln case of deaLh of Lhe sole proprleLor and Lo
prevenL dlsrupLlon of operaLlon Lo Lhe pre[udlce of Lhe lnLeresL
of leglLlmaLe helrs, Lhe llcense may be exLended upon requesL of
Lhe helrs, Lo conLlnue only for Lhe purpose of wlndlng up
buslness operaLlons.
ku|e II Sec. 8. Change of Cwnershlp/8elaLlonshlp of Slngle
roprleLorshlp or arLnershlp. 1ransfer or change of ownershlp
of a slngle proprleLorshlp llcensed Lo engage ln overseas
employmenL shall cause Lhe auLomaLlc revocaLlon of Lhe llcense.
A change ln Lhe relaLlonshlp of Lhe parLners ln a parLnershlp duly
llcensed Lo engage ln overseas employmenL whlch maLerlally
lnLerrupLs Lhe course of Lhe buslness or resulLs ln Lhe acLual
dlssoluLlon of Lhe parLnershlp shall llkewlse cause Lhe auLomaLlc
revocaLlon of Lhe llcense.

ku|e II Sec. 9. upgradlng of Slngle roprleLorshlp or
arLnershlps. Llcense holders whlch are slngle proprleLorshlps or
parLnershlps may, sub[ecL Lo Lhe guldellnes of Lhe
AdmlnlsLraLlon, converL lnLo corporaLlon for purposes of
upgradlng or ralslng Lhelr capablllLles Lo respond adequaLely Lo
developmenLs/changes ln Lhe lnLernaLlonal labor markeL and Lo
enable Lhem Lo beLLer comply wlLh Lhelr responslblllLles arlslng
from Lhe recrulLmenL and deploymenL of workers overseas. 1he
approval of merger, consolldaLlon or upgradlng shall
auLomaLlcally revoke or cancel Lhe llcenses of Lhe slngle
proprleLorshlps, parLnershlps or corporaLlons so merged,
consolldaLed or upgraded.

Ceneral 8ule: Llcensees or holders of auLhorlLy, or Lhelr
auLhorlzed represenLaLlves, may underLake recrulLmenL and
placemenL acLlvlLy only aL Lhelr auLhorlzed offlclal addresses.
LxcepLlon: May conducL provlnclal recrulLmenL (slnce mosL
llcensees have offlclal addresses ln nC8) or [ob falrs only upon
wrlLLen auLhorlLy from Lhe CLA.
L. kLGIS1kA1ICN]LICLNSL ILLS
Art. 30 keg|strat|on fees 1he SecreLary of Labor shall
promulgaLe schedule of fees for Lhe reglsLraLlon of all appllcanLs
for llcense or auLhorlLy.
ku|e II Sec. 4. aymenL of lees and osLlng of 8onds. upon
approval of Lhe appllcaLlon, Lhe appllcanL shall pay a llcense fee
of 30,000.00. lL shall submlL an Lscrow AgreemenL ln Lhe
amounL of 1,000,000.00, conflrmaLlon of escrow deposlL wlLh
an accredlLed repuLable bank and a sureLy bond of 100,000.00
from a bondlng company accepLable Lo Lhe AdmlnlsLraLlon and
accredlLed wlLh Lhe lnsurance Commlsslon.
Agencles wlLh exlsLlng llcenses shall, wlLhln four years from
effecLlvlLy hereof, lncrease Lhelr Lscrow ueposlL Lo Cne Mllllon
esos. 1he bonds and escrow shall answer for all valld and legal
clalms arlslng from vlolaLlons of Lhe condlLlons for Lhe granL and
use of Lhe llcense, and/or accredlLaLlon and conLracLs of
employmenL. 1he bonds and escrow shall llkewlse guaranLee
compllance wlLh Lhe provlslons of Lhe Code and lLs
lmplemenLlng rules and regulaLlons relaLlng Lo recrulLmenL and
placemenL, Lhe 8ules of Lhe AdmlnlsLraLlon and relevanL
lssuances of Lhe ueparLmenL and all llablllLles whlch Lhe
AdmlnlsLraLlon may lmpose.
The surety bonds shall include the condition that notice to the
prlnclpal ls noLlce Lo Lhe sureLy and LhaL any [udgmenL agalnsL
Lhe prlnclpal ln connecLlon wlLh maLLers falllng under
POEAs/NLRCs jurisdiction shall be binding and conclusive on
Lhe sureLy. 1he sureLy bonds shall cover Lhe valldlLy perlod of
Lhe llcense.
I. 8CNDS

Art. 31 8onds All appllcanLs for llcense or auLhorlLy shall posL
cash and sureLy bonds as deLermlned by Lhe SecreLary of Labor
Lo guaranLee compllance wlLh prescrlbed recrulLmenL
procedures, rules and regulaLlons, and Lerms and condlLlons of
employmenL as may be approprlaLe.

AMCUN1 CI 8CND (LCCAL VS. CVLkSLAS)

LCCAL (prlor Lo Lhe approval of llcense)

1. Cash bond 23k
2. SureLy bond 100k

8oLh valld for Lwo years.
Wlll answer for all valld and legal clalms arlslng from lllegal use
of llcense and shall guaranLee compllance wlLh LC and lLs l88.

CvL8SLAS (upon approval of Lhe appllcaLlon for llcense)

1. Lscrow AgreemenL 1M
2. SureLy bond 100k from a bondlng company accepLable Lo
CLA and accredlLed by lnsurance Commlsslon

SureLy 8ond wlll cover valldlLy of Lhe perlod of Lhe llcense.
8onds and escrows wlll answer for all valld and legal clalms
arlslng from vlolaLlons of Lhe use of llcense and accredlLaLlon
and conLracLs of employmenL.

CLA shall have Lhe power Lo enforce llablllLy under cash or
sureLy bonds.

Art. 31 vs Art. 223

ArL. 31 noL llmlLed Lo moneLary awards Lo employees buL also
for vlolaLlons by Lhe recrulLer of Lhe condlLlons of lLs llcense.

Answers for:
1. vlolaLlons of Lhe condlLlons for Lhe granL and use of llcense or
auLhorlLy
2. vlolaLlons of labor laws
3. vlolaLlons of conLracL of employmenL

uoes noL lnclude clalms agalnsL recrulLmenL agency such as
reimbursement for the airline tickets used by the agencys
recrulLs.
ArL. 223 8ond ls a requlremenL for Lhe perfecLlon of an appeal.
8efers clalms for moneLary awards Lo employees whose conLracL
of employmenL has been vlolaLed.

2.WORKERS FES/FILING FEES/LICENSE FEES
Art. 32. N..% () 1. 90$& 1> :)#O.#%. - Any person applylng wlLh a
prlvaLe fee-charglng employmenL agency for employmenL
asslsLance shall noL be charged any fee unLll he has obLalned
employmenL Lhrough lLs efforLs or has acLually commenced
employmenL. Such fee shall be always covered wlLh Lhe
approprlaLe recelpL clearly showlng Lhe amounL pald. 1he
SecreLary of Labor shall promulgaLe a schedule of allowable fees.

LACLMLN1 ILL
LCCAL
Shall noL be more Lhan 20 of workers 1
sL
months basic
salary
uo noL charge before commencemenL of employmenL
CvL8SLAS
Ceneral rule: Land-based agency: may collecL amounL
equlvalenL Lo 1 monLh salary, excluslve of documenLaLlon
cosLs
LxcepLlon: lf Lhe prevalllng sysLem ln Lhe counLry where
worker ls Lo be deployed does noL allow placemenL &
recrulLmenL fee.
DCCUMLN1 ILL
CvL8SLAS
lees chargeable Lo prlnclpals: vlsa fee, alrfare, CLA
processlng fee, CWWA membershlp fee
When recrulLmenL agency agrees Lo perform
documenLaLlon servlces, worker shall only pay Lhe acLual
cosLs of Lhe documenL musL be supporLed by offlclal
recelpLs
no oLher charges unless CLA approved
CollecLed only when hlred
SLkVICL ILLS
LCCAL
noL more Lhan 20 of Lhe annual salary of worker
noL Lo be deducLed from workers salary
1ransporLaLlon expenses of worker charged agalnsL
employer and cannot be deducted from workers salary
CvL8SLAS
Charge prlnclpals a servlce or mannlng fees Lo cover
servlces rendered ln recrulLmenL documenLaLlon and
placement of workers and seafarers.
kLIUND CI ILLS
CLA has Lhe power Lo order refund of lllegally collecLed fees.

ku|e V Sec. 3. lees/CosLs Chargeable Lo Lhe Workers. LxcepL
where Lhe prevalllng sysLem ln Lhe counLry where Lhe worker ls
Lo be deployed, elLher by law, pollcy or pracLlce, do noL allow
Lhe charglng or collecLlon of placemenL and recrulLmenL fee, a
land-based agency may charge and collecL from lLs hlred workers
a placemenL fee ln an amounL equlvalenL Lo one monLh salary,
excluslve of documenLaLlon cosLs.
uocumenLaLlon cosLs Lo be pald by Lhe worker shall lnclude, buL
noL llmlLed Lo, expenses for Lhe followlng:
a. assporL,
b. n8l/ollce/8arangay Clearance,
c. AuLhenLlcaLlon,
d. 8lrLh CerLlflcaLe,
e. Medlcare,
f. 1rade 1esL, lf necessary,
g. lnoculaLlon, when requlred by hosL counLry,
h. Medlcal LxamlnaLlon fees.
ln Lhe evenL LhaL Lhe recrulLmenL agency agrees Lo perform
documenLaLlon servlces, Lhe worker shall pay only Lhe acLual
cosL of Lhe documenL whlch shall be covered by offlclal recelpLs.
AVLLINA SAGUN VS. SUNACL IN1LkNA1ICNAL (2011)
l: AvellnaSagun applled Lo be a careLaker ln 1alwan wlLh
Sunace. ln conslderaLlon of her placemenL and employmenL, she
allegedly pald 30,000.00 cash, 10,000.00 ln Lhe form of a
promlssory noLe, and n1$60,000.00 Lhrough salary deducLlon
whlch are all ln vlolaLlon of Lhe prohlblLlon Lo excesslve fees). A
presenLed a phoLocopy of Lhe promlssory noLe and her
LesLlmonles as evldences. Sunace conLends LhaL A only pald
20,840 and presenLed Lhe offlclal recelpL as evldence.
P: 1he CourL gave more credence Lo Lhe offlclal recelpL of
Sunace. A recelpL ls a wrlLLen and slgned acknowledgmenL LhaL
money or goods have been dellvered. Pavlng falled Lo adduce
sufflclenL rebuLLal evldence, peLlLloner ls bound by Lhe conLenLs
of Lhe recelpL lssued by respondenL. 1he recelpL remalns as Lhe
prlmary or besL evldence.


3. kLCk1S]LMLCMLN1 INICkMA1ICN
Art. 33 8eporLs on employmenL sLaLus Whenever Lhe publlc
lnLeresL requlres, Lhe SecreLary of Labor may dlrecL all persons
or enLlLles wlLhln Lhe coverage of Lhls 1lLle Lo submlL a reporL on
Lhe sLaLus of employmenL, lncludlng [ob vacancles, deLalls of [ob
requlslLlons, separaLlon from [obs, wages, oLher Lerms and
condlLlons, and oLher employmenL daLa.
Art. 14 (d). mploymeot ptomotloo. - 1he SecreLary of Labor
shall have Lhe power and auLhorlLy: 1o requlre any person,
esLabllshmenL, organlzaLlon or lnsLlLuLlon Lo submlL such
employmenL lnformaLlon as may be prescrlbed by Lhe SecreLary
of Labor.
ArL. 34 (h). ltoblblteJ ptoctlces. - lL shall be unlawful for any
lndlvldual, enLlLy, llcensee, or holder of auLhorlLy: (h) 1o fall Lo
flle reporLs on Lhe sLaLus of employmenL, placemenL vacancles,
remlLLance of forelgn exchange earnlngs, separaLlon from [obs,
deparLures and such oLher maLLers or lnformaLlon as may be
requlred by Lhe SecreLary of Labor.

4. ILLGAL kLCkUI1MLN1: SIMLL]UALIIILD
Ck SNDICA1LD
Art. 34. ltoblblteJ ptoctlces. - lL shall be unlawful for any
lndlvldual, enLlLy, llcensee, or holder of auLhorlLy:

(a) 1o charge or accepL, dlrecLly or lndlrecLly, any amounL
greaLer Lhan LhaL speclfled ln Lhe schedule of allowable
fees prescrlbed by Lhe SecreLary of Labor, or Lo make a
worker pay any amounL greaLer Lhan LhaL acLually
recelved by hlm as a loan or advance,
(b) 1o furnlsh or publlsh any false noLlce or lnformaLlon or
(c) 1o glve any false noLlce, LesLlmony, lnformaLlon or
documenL or commlL any acL of mlsrepresenLaLlon for
Lhe purpose of securlng a llcense or auLhorlLy under Lhls
Code.
(d) 1o lnduce or aLLempL Lo lnduce a worker already
employed Lo qulL hls employmenL ln order Lo offer hlm Lo
anoLher unless Lhe Lransfer ls deslgned Lo llberaLe Lhe
worker from oppresslve Lerms and condlLlons of
employmenL,
(e) 1o lnfluence or Lo aLLempL Lo lnfluence any person or
enLlLy noL Lo employ any worker who has noL applled for
employmenL Lhrough hls agency,
(f) 1o engage ln Lhe recrulLmenL or placemenL of workers ln
[obs harmful Lo publlc healLh or morallLy or Lo Lhe dlgnlLy
of Lhe 8epubllc of Lhe hlllpplnes,
(g) 1o obsLrucL or aLLempL Lo obsLrucL lnspecLlon by Lhe
SecreLary of Labor or by hls duly auLhorlzed
represenLaLlves,
(h) 1o fall Lo flle reporLs on Lhe sLaLus of employmenL,
placemenL vacancles, remlLLance of forelgn exchange
earnlngs, separaLlon from [obs, deparLures and such
oLher maLLers or lnformaLlon as may be requlred by Lhe
SecreLary of Labor.
(l) 1o subsLlLuLe or alLer employmenL conLracLs approved and
verlfled by Lhe ueparLmenL of Labor from Lhe Llme of
acLual slgnlng Lhereof by Lhe parLles up Lo and lncludlng
Lhe perlods of explraLlon of Lhe same wlLhouL Lhe
approval of Lhe SecreLary of Labor,
([) 1o become an offlcer or member of Lhe 8oard of any
corporaLlon engaged ln Lravel agency or Lo be engaged
dlrecLly or lndlrecLly ln Lhe managemenL of a Lravel
agency, and
(k) 1o wlLhhold or deny Lravel documenLs from appllcanL
conslderaLlons oLher Lhan Lhose auLhorlzed under Lhls
Code and lLs lmplemenLlng rules and regulaLlons.

Commlsslon of acLs prohlblLed consLlLuLes noL [usL recrulLmenL
vlolaLlon buL lllegal recrulLmenL. See Sec. 6, 8A 8042.
Art. 38 llleqol tectoltmeot.
(a) Any recrulLmenL acLlvlLles, lncludlng Lhe prohlblLed pracLlces
enumeraLed under ArLlcle 34 of Lhls Code, Lo be underLaken by
non-llcensees or non-holders of auLhorlLy, shall be deemed
lllegal and punlshable under ArLlcle 39 of Lhls Code. 1he
ueparLmenL of Labor and LmploymenL or any law enforcemenL
offlcer may lnlLlaLe complalnLs under Lhls ArLlcle.
(b). lllegal recrulLmenL when commlLLed by a syndlcaLe or ln
large scale shall be consldered an offense lnvolvlng economlc
saboLage and shall be penallzed ln accordance wlLh ArLlcle 39
hereof. lllegal recrulLmenL ls deemed commlLLed by a syndlcaLe
lf carrled ouL by a group of Lhree (3) or more persons consplrlng
and/or confederaLlng wlLh one anoLher ln carrylng ouL any
unlawful or lllegal LransacLlon, enLerprlse or scheme deflned
under Lhe flrsL paragraph hereof. lllegal recrulLmenL ls deemed
commlLLed ln large scale lf commlLLed agalnsL Lhree (3) or more
persons lndlvldually or as a group.


kA 8042
Sec. 6. DLIINI1ICNS. - lor purposes of Lhls AcL, lllegal
recrulLmenL shall mean any acL of canvasslng, enllsLlng,
conLracLlng, LransporLlng, uLlllzlng, hlrlng, procurlng workers and
lncludes referrlng, conLacL servlces, promlslng or adverLlslng for
employmenL abroad, wheLher for proflL or noL, when
underLaken by a non-llcense or non-holder of auLhorlLy
conLemplaLed under ArLlcle 13(f) of resldenLlal uecree no. 442,
as amended, oLherwlse known as Lhe Labor Code of Lhe
hlllpplnes. rovlded, LhaL such non-llcense or non-holder, who,
ln any manner, offers or promlses for a fee employmenL abroad
Lo Lwo or more persons shall be deemed so engaged. lL shall
llkewlse lnclude Lhe followlng acLs, wheLher commlLLed by any
persons, wheLher a non-llcensee, non-holder, llcensee or holder
of auLhorlLy.
(a) 1o charge or accepL dlrecLly or lndlrecLly any amounL greaLer
Lhan Lhe speclfled ln Lhe schedule of allowable fees prescrlbed
by Lhe SecreLary of Labor and LmploymenL, or Lo make a worker
pay any amounL greaLer Lhan LhaL acLually recelved by hlm as a
loan or advance,
(b) 1o furnlsh or publlsh any false noLlce or lnformaLlon or
(c) 1o glve any false noLlce, LesLlmony, lnformaLlon or documenL
or commlL any acL of mlsrepresenLaLlon for Lhe purpose of
securlng a llcense or auLhorlLy under Lhe Labor Code,
(d) 1o lnduce or aLLempL Lo lnduce a worker already employed
Lo qulL hls employmenL ln order Lo offer hlm anoLher unless Lhe
Lransfer ls deslgned Lo llberaLe a worker from oppresslve Lerms
and condlLlons of employmenL,
(e) 1o lnfluence or aLLempL Lo lnfluence any persons or enLlLy
noL Lo employ any worker who has noL applled for employmenL
Lhrough hls agency,
(f) 1o engage ln Lhe recrulLmenL of placemenL of workers ln [obs
harmful Lo publlc healLh or morallLy or Lo dlgnlLy of Lhe 8epubllc
of Lhe hlllpplnes,
(g) 1o obsLrucL or aLLempL Lo obsLrucL lnspecLlon by Lhe
SecreLary of Labor and LmploymenL or by hls duly auLhorlzed
represenLaLlve,
(h) 1o fall Lo submlL reporLs on Lhe sLaLus of employmenL,
placemenL vacancles, remlLLances of forelgn exchange earnlngs,
separaLlons from [obs, deparLures and such oLher maLLers or
lnformaLlon as may be requlred by Lhe SecreLary of Labor and
LmploymenL,
(l) 1o subsLlLuLe or alLer Lo Lhe pre[udlce of Lhe worker,
employmenL conLracLs approved and verlfled by Lhe ueparLmenL
of Labor and LmploymenL from Lhe Llme of acLual slgnlng
Lhereof by Lhe parLles up Lo and lncludlng Lhe perlod of Lhe
explraLlon of Lhe same wlLhouL Lhe approval of Lhe ueparLmenL
of Labor and LmploymenL,
([) lor an offlcer or agenL of a recrulLmenL or placemenL agency
Lo become an offlcer or member of Lhe 8oard of any corporaLlon
engaged ln Lravel agency or Lo be engaged dlrecLly on lndlrecLly
ln Lhe managemenL of a Lravel agency,
(k) 1o wlLhhold or deny Lravel documenLs from appllcanL
conslderaLlons oLher Lhan Lhose auLhorlzed under Lhe Labor
Code and lLs lmplemenLlng rules and regulaLlons,
(l) lallure Lo acLually deploy wlLhouL valld reasons as deLermlned
by Lhe ueparLmenL of Labor and LmploymenL, and
(m) lallure Lo relmburse expenses lncurred by Lhe workers ln
connecLlon wlLh hls documenLaLlon and processlng for purposes
of deploymenL, ln cases where Lhe deploymenL does noL acLually
Lake place wlLhouL Lhe worker's faulL. lllegal recrulLmenL when
commlLLed by a syndlcaLe or ln large scale shall be consldered as
offense lnvolvlng economlc saboLage.
lllegal recrulLmenL ls deemed commlLLed by a syndlcaLe carrled
ouL by a group of Lhree (3) or more persons consplrlng or
confederaLlng wlLh one anoLher. lL ls deemed commlLLed ln large
scale lf commlLLed agalnsL Lhree (3) or more persons lndlvldually
or as a group.
1he persons crlmlnally llable for Lhe above offenses are Lhe
prlnclpals, accompllces and accessorles. ln case of [urldlcal
persons, Lhe offlcers havlng conLrol, managemenL or dlrecLlon of
Lhelr buslness shall be llable.
Sec. 7. leooltles.
(a) Any person found gullLy of lllegal recrulLmenL shall suffer Lhe
penalLy of lmprlsonmenL of noL less Lhan Lwelve (12) years and
one (1) day buL noL more Lhan LwenLy (20) years and a flne of
noL less Lhan Cne mllllon pesos (1,000,000.00) nor more Lhan
1wo mllllon pesos (2,000,000.00).

(b) 1he penalLy of llfe lmprlsonmenL and a flne of noL less Lhan
1wo mllllon pesos (2,000,000.00) nor more Lhan llve mllllon
pesos (3,000,000.00) shall be lmposed lf lllegal recrulLmenL

consLlLuLes economlc saboLage as deflned Lhereln. rovlded,
however, 1haL Lhe maxlmum penalLy shall be lmposed lf Lhe
person lllegally recrulLed ls less Lhan elghLeen (18) years of age
or commlLLed by a non-llcensee or non-holder of auLhorlLy.

(c) Any person found gullLy of any of Lhe prohlblLed acLs shall
suffer Lhe penalLy of lmprlsonmenL of noL less Lhan slx (6) years
and one (1) day buL noL more Lhan Lwelve (12) years and a flne
of noL less Lhan llve hundred Lhousand pesos (300,000.00) nor
more Lhan Cne mllllon pesos (1,000,000.00). lf Lhe offender ls
an allen, he or she shall, ln addlLlon Lo Lhe penalLles hereln
prescrlbed, be deporLed wlLhouL furLher proceedlngs. ln every
case, convlcLlon shall cause and carry Lhe auLomaLlc revocaLlon
of Lhe llcense or reglsLraLlon of Lhe recrulLmenL/mannlng
agency, lendlng lnsLlLuLlons, Lralnlng school or medlcal cllnlc.

Sec. 8. lL shall be unlawful for any offlclal or employee of Lhe
ueparLmenL of Labor and LmploymenL, Lhe hlllpplne Cverseas
LmploymenL AdmlnlsLraLlon, or Lhe Cverseas Workers Welfare
AdmlnlsLraLlon, or Lhe ueparLmenL of lorelgn Affalrs, or oLher
governmenL agencles lnvolved ln Lhe lmplemenLaLlon of Lhls AcL,
or Lhelr relaLlves wlLhln Lhe fourLh clvll degree of consangulnlLy
or afflnlLy, Lo engage, dlrecLly or lndlrecLly, ln Lhe buslness of
recrulLlng mlgranL workers as deflned ln Lhls AcL. 1he penalLles
shall be lmposed upon Lhem.

Sec. 9. A crlmlnal acLlon arlslng from lllegal recrulLmenL as
deflned hereln shall be flled wlLh Lhe 8eglonal 1rlal CourL of Lhe
provlnce or clLy where Lhe offense was commlLLed or where Lhe
offended parLy acLually resldes aL Lhe same Llme of Lhe
commlsslon of Lhe offense: rovlded, 1haL Lhe courL where Lhe
crlmlnal acLlon ls flrsL flled shall acqulre [urlsdlcLlon Lo Lhe
excluslon of oLher courLs. rovlded, however, 1haL Lhe
aforesLaLed provlslons shall also apply Lo Lhose crlmlnal acLlons
LhaL have already been flled ln courL aL Lhe Llme of Lhe effecLlvlLy
of Lhls AcL.

Sec. 10. Mooey clolms. - noLwlLhsLandlng any provlslon of law
Lo Lhe conLrary, Lhe Labor ArblLers of Lhe naLlonal Labor
8elaLlons Commlsslon (nL8C) shall have Lhe orlglnal and
excluslve [urlsdlcLlon Lo hear and declde, wlLhln nlneLy (90)
calendar days afLer Lhe flllng of Lhe complalnL, Lhe clalms arlslng
ouL of an employer-employee relaLlonshlp or by vlrLue of any
law or conLracL lnvolvlng llllplno workers for overseas
deploymenL lncludlng clalms for acLual, moral, exemplary and
oLher forms of damage. ConslsLenL wlLh Lhls mandaLe, Lhe nL8C
shall endeavor Lo updaLe and keep abreasL wlLh Lhe
developmenLs ln Lhe global servlces lndusLry.

1he llablllLy of Lhe prlnclpal/employer and Lhe
recrulLmenL/placemenL agency for any and all clalms under Lhls
secLlon shall be [olnL and several. 1hls provlslon shall be
lncorporaLed ln Lhe conLracL for overseas employmenL and shall
be a condlLlon precedenL for lLs approval. 1he performance
bond Lo de flled by Lhe recrulLmenL/placemenL agency, as
provlded by law, shall be answerable for all money clalms or
damages LhaL may be awarded Lo Lhe workers. lf Lhe
recrulLmenL/placemenL agency ls a [urldlcal belng, Lhe corporaLe
offlcers and dlrecLors and parLners as Lhe case may be, shall
Lhemselves be [olnLly and solldarlly llable wlLh Lhe corporaLlon
or parLnershlp for Lhe aforesald clalms and damages.

Such llablllLles shall conLlnue durlng Lhe enLlre perlod or
duraLlon of Lhe employmenL conLracL and shall noL be affecLed
by any subsLlLuLlon, amendmenL or modlflcaLlon made locally or
ln a forelgn counLry of Lhe sald conLracL.

Any compromlse/amlcable seLLlemenL or volunLary agreemenL
on money clalms lncluslve of damages under Lhls secLlon shall be
pald wlLhln LhlrLy (30) days from approval of Lhe seLLlemenL by
Lhe approprlaLe auLhorlLy.

ln case of LermlnaLlon of overseas employmenL wlLhouL [usL,
valld or auLhorlzed cause as deflned by law or conLracL, or any
unauLhorlzed deducLlons from Lhe mlgranL worker's salary, Lhe
worker shall be enLlLled Lo Lhe full relmbursemenL lf hls
placemenL fee and Lhe deducLlons made wlLh lnLeresL aL Lwelve
percenL (12) per annum, plus hls salarles for Lhe unexplred
porLlon of hls employmenL conLracL or for Lhree (3) monLhs for
every year of Lhe unexplred Lerm, whlchever ls less. ln case of a
flnal and execuLory [udgmenL agalnsL a forelgn
employer/prlnclpal, lL shall be auLomaLlcally dlsquallfled,
wlLhouL furLher proceedlngs, from parLlclpaLlng ln Lhe hlllpplne
Cverseas LmploymenL rogram and from recrulLlng and hlrlng
llllplno workers unLll and unless lL fully saLlsfles Lhe [udgmenL
award.

noncompllance wlLh Lhe mandaLory perlods for resoluLlons of
case provlded under Lhls secLlon shall sub[ecL Lhe responslble
offlclals Lo any or all of Lhe followlng penalLles: (a) 1he salary of
any such offlclal who falls Lo render hls declslon or resoluLlon
wlLhln Lhe prescrlbed perlod shall be, or caused Lo be, wlLhheld
unLll Lhe sald offlclal complles LherewlLh, (b) Suspenslon for noL
more Lhan nlneLy (90) days, or (c) ulsmlssal from Lhe servlce
wlLh dlsquallflcaLlon Lo hold any appolnLlve publlc offlce for flve
(3) years.

ltovlJeJ, bowevet, 1haL Lhe penalLles hereln provlded shall be
wlLhouL pre[udlce Lo any llablllLy whlch any such offlclal may
have lncurred under oLher exlsLlng laws or rules and regulaLlons
as a consequence of vlolaLlng Lhe provlslons of Lhls paragraph.

Sec. 11. 1he prellmlnary lnvesLlgaLlons of cases under Lhls AcL
shall be LermlnaLed wlLhln a perlod of LhlrLy (30) calendar days

from Lhe daLe of Lhelr flllng. Where Lhe prellmlnary lnvesLlgaLlon
ls conducLed by a prosecuLlon offlcer and a prlma facle case ls
esLabllshed, Lhe correspondlng lnformaLlon shall be flled ln courL
wlLhln LwenLy-four (24) hours from Lhe LermlnaLlon of Lhe
lnvesLlgaLlon. lf Lhe prellmlnary lnvesLlgaLlon ls conducLed by a
[udge and a prlma facle case ls found Lo exlsL, prosecuLlon offlcer
wlLhln forLy-elghL (48) hours from Lhe daLe of recelpL of Lhe
records of Lhe case.

Sec. 12. lllegal recrulLmenL cases under Lhls AcL shall prescrlbe
ln flve (3) years: rovlded, however, 1haL lllegal recrulLmenL
cases lnvolvlng economlc saboLage as deflned hereln shall
prescrlbe ln LwenLy (20) years.
a. When underLaken by non-llcensees, non-holders
b. rohlblLed pracLlces

Lk1 ] CM MANCWLk LkCNLN1 CC., INC VS.
AkMANDC VINUA L1. AL (2012)

l: Armando vlnuya and 7 more people were deployed by L81
as alumlnum fabrlcaLors/lnsLallers ln uubal for Modern MeLal
SoluLlons (MMS). 1helr lnlLlal employmenL conLracLs were
approved by CLA. Powever, when MMS lssued Lhelr
appolnLmenL leLLers, lL conLalned dlfferenL provlslons such as:
Lhey were only ordlnary workers, employmenL perlod lncreased
whlle paymenL decreased. lurLhermore, Lhelr acLual worklng
condlLlons were much worse LhaL whaL was agreed. A eL al
complalned Lo L81 buL L81 dld noL do anyLhlng abouL lL. A eL.
al evenLually reslgned and flled a complalnL for lllegal dlsmlssal.

P: L81 and MMS are gullLy of lllegal recrulLmenL. 1he
alLeraLlons MMS made Lo Lhe lnlLlal approved conLracL ln form
of appolnLmenL leLLers consLlLuLe a conLracL subsLlLuLlon whlch
is expressly prohibited in the LC (Art. 34). A et. als resignation is
acLually a consLrucLlve dlsmlssal because Lhelr conLlnued
employmenL has become unreasonable due Lo Lhe lnhumane
condlLlons.

S1CL1- NLILSLN1kANSC GkCU AND CnUNG GAI SnI
MGM1. VS. SULLCIC MLDLUILLC (2012)

l: SulpecloMedequlllo was hlred by SLolL-nlelsen for Chung-Cau
Shlp as a 3
rd
AsslsLanL Lngr. AfLer 3 monLhs from hls deploymenL,
he was ordered by Lhe shlpmasLer Lo dlsembark for no reason aL
all. AfLer hls reLurn, he was Lransferred Lo a dlfferenL shlp on Lhe
same Lerms, however, he was noL deployed Lhls Llme. S made
follow-ups Lo no avall. When he wanLed Lo geL hls passporL and
seamans book back to apply to other places, he was made to
slgn a documenL ln exchange for Lhem. S dlled an lllegal
dlsmlssal case agalnsL SLolL. SLolL argued LhaL acLual deploymenL
ls a suspenslve condlLlon for Lhe commencemenL of
employmenL. Slnce S was noL deployed, Lherefore, Lhere was no
employer-employee relaLlonshlp and no lllegal dlsmlssal.

P: 1he CourL dlfferenLlaLed beLween Lhe perfecLlon of
employmenL conLracL and Lhe commencemenL of Lhe employer-
employee relaLlonshlp. 1he former sLarLs from Lhe daLe of
execuLlon of Lhe conLracL when Lhere ls a meeLlng of Lhe mlnds
of Lhe parLles whlle Lhe laLLer sLarLs upon acLual deploymenL. lL
ls Lrue LhaL Lhere ls no employee-employer relaLlonshlp beLween
SLolL and S buL lL does noL mean LhaL S ls lefL wlLh no recourse
agalnsL SLolL. S can sLlll flle an acLlon for damages agalnsL SLolL
for breach of conLracL.

LCLL VS. DCLCkLS CCDLN (2011)

l: uolores Ccden recrulLed and promlsed employmenL aL leasL 6
persons wlLhouL securlng Lhe necessary llcense or auLhorlLy from
Lhe uCLL. u clalms LhaL she Loo was applylng as an overseas
worker, and LhaL Lhe lllegal recrulLer was 8amos (Lhe one who
brlefed Lhe appllcanLs).

H: Ds defense were self-servlng and unsubsLanLlaLed, Lherefore,
deserves no merlL. lL ls noL necessary for Lhe prosecuLlon Lo
presenL a cerLlflcaLlon LhaL Ccden ls a non-llcensee or non-
holder of auLhorlLy Lo lawfully engage ln Lhe recrulLmenL and
placemenL of workers. SecLlon 6(m) of 8A 8042 provldes LhaL
lllegal recrulLmenL can be commlLLed by any person, even a
llcensed recrulLer.

S. LNICkCLMLN1 CWLkS
Art. 3S. 5ospeosloo ooJ/ot coocellotloo of llceose ot ootbotlty. -
1he MlnlsLer of Labor shall have Lhe power Lo suspend or cancel
any llcense or auLhorlLy Lo recrulL employees for overseas
employmenL for vlolaLlon of rules and regulaLlons lssued by Lhe
MlnlsLry of Labor, Lhe Cverseas LmploymenL uevelopmenL
8oard, or for vlolaLlon of Lhe provlslons of Lhls and oLher
appllcable laws, Ceneral Crders and LeLLers of lnsLrucLlons.

Art. 36. keqolototy powet. - 1he SecreLary of Labor shall have
Lhe power Lo resLrlcL and regulaLe Lhe recrulLmenL and
placemenL acLlvlLles of all agencles wlLhln Lhe coverage of Lhls
1lLle and ls hereby auLhorlzed Lo lssue orders and promulgaLe
rules and regulaLlons Lo carry ouL Lhe ob[ecLlves and lmplemenL
Lhe provlslons of Lhls 1lLle.
c. vlslLorlal power

Art. 3S. 5ospeosloo ooJ/ot coocellotloo of llceose ot ootbotlty. -
1he MlnlsLer of Labor shall have Lhe power Lo suspend or cancel
any llcense or auLhorlLy Lo recrulL employees for overseas
employmenL for vlolaLlon of rules and regulaLlons lssued by Lhe
MlnlsLry of Labor, Lhe Cverseas LmploymenL uevelopmenL

8oard, or for vlolaLlon of Lhe provlslons of Lhls and oLher
appllcable laws, Ceneral Crders and LeLLers of lnsLrucLlons.

Art. 37. vlsltotlol lowet. - 1he SecreLary of Labor or hls duly
auLhorlzed represenLaLlves may, aL any Llme, lnspecL Lhe
premlses, books of accounLs and records of any person or enLlLy
covered by Lhls 1lLle, requlre lL Lo submlL reporLs regularly on
prescrlbed forms, and acL on vlolaLlon of any provlslons of Lhls
1lLle.

1he uCLL Sec. and CLA AdmlnlsLraLor have concurrenL
[urlsdlcLlon Lo suspend or cancel a llcense.

6. CLA S1ANDAkD LMLCMLN1 CCN1kAC1

A. 1C 8L IN1LGkA1LD IN EVERY SEAFARERS
CCN1kAC1

WALLLN MAkI1IML SLkVICLS, INC. VS LkNLS1C C.
1ANAWAN (2012)
l: LrnesLo was employed as a dozer dlver asslgned Lo M/v
LasLern lalcon. Whlle employed, he obLalned a Loe fracLure and
an eye ln[ury. Pe Lhen flled wlLh Lhe nL8C a clalm for dlsablllLy
beneflLs for Lhe fooL and eye ln[urles, slckness allowance,
damages and attorneys fees.
P: 1he employmenL of seafarers, and lLs lncldenLs, lncludlng
clalms for deaLh beneflLs, are governed by Lhe conLracLs Lhey
slgn every Llme Lhey are hlred or rehlred. Such conLracLs have
Lhe force of law beLween Lhe parLles as long as Lhelr sLlpulaLlons
are noL conLrary Lo law, morals, publlc order or publlc pollcy.
Whlle Lhe seafarers and Lhelr employers are governed by Lhelr
muLual agreemenLs, Lhe CLA rules and regulaLlons requlre LhaL
Lhe CLA SLC, whlch conLalns Lhe sLandard Lerms and condlLlons
of the seafarers employment in foreign ocean-golng vessels, be
integrated in every seafarers contract.
b. CCNS1kUC1ICN: LI8LkAL

A8AN1LVS kIGS ILLL1 MANAGLMLN1, MANILA, L1. AL.
(2009)
l: Leo was hlred by k!CS Lo work as an ablebodled seaman
aboard M/1 8aLhboyne where he sllpped and hurL hls back. Pe
was referred Lo a company-deslgnaLed physlclan who dlagnosed
hlm and Lhen afLer some Llme, pronounced hlm flL Lo resume
sea duLles. Pe, however, refused Lo slgn hls CerLlflcaLe of llLness
for Work and goL a second oplnlon where he was dlagnosed wlLh
failed back syndrome and declared him medically unfit to work
agaln.
P: 1996 CLA SLandard LmploymenL ConLracL: [w]hile it is the
company-deslgnaLed physlclan who musL declare LhaL Lhe
seaman suffers a permanenL dlsablllLy durlng employmenL, lL
does noL deprlve Lhe seafarer of hls rlghL Lo seek a second
opinion, POEA sLandard employmenL conLracL for seamen was
deslgned prlmarlly for Lhe proLecLlon and beneflL of llllplno
seamen ln Lhe pursulL of Lhelr employmenL on board ocean-
golng vessels. lLs provlslons musL be consLrued and applled
falrly, reasonably and llberally ln Lhelr favor.
C. 1LkMS AND CCNDI1ICNS
1. DISA8ILI1 8LNLII1S
7. ICIN1 AND SLVLkAL LIA8ILI1 CI
kLCkUI1MLN1]LACLMLN1 AGLNCILS AND
kINCIAL]LMLCLk

A. LIILC1 CI 1LkMINA1ICN CI AGLNC
AGkLLMLN1 8L1WLLN MANNING AGLN1 AND
kINCIAL

kA 8042 Sec. 10 2
nd
par.- 1he llablllLy of Lhe prlnclpal/employer
and Lhe recrulLmenL/placemenL agency for any and all clalms
under Lhls secLlon shall be [olnL and several. 1hls provlslons shall
be lncorporaLed ln Lhe conLracL for overseas employmenL and
shall be a condlLlon precedenL for lLs approval. 1he performance
bond Lo be flled by Lhe recrulLmenL/placemenL agency, as

8. UkCSL CI ICIN1 AND SLVLkAL LIA8ILI1:
IMMLDIA1L AND SUIIICILN1 AMLN1

CSM SnCING nIL., INCVS NLkC (2003)
l: lermln was hlred by CSM for and ln behalf of lLs prlnclpal, hll
Carrler Shlpplng Agency Lo board lLs vessel as a MasLer Marlner.
Pe alleges LhaL for almosL 7 monLhs, desplLe hls servlces, no
compensaLlon or renumeraLlon was ever pald Lo hlm. CSM ls
clalmlng LhaL slnce Lhelr crew agreemenL wlLh hll Carrler
Shipping Agency has been terminated, they cant be held liable.
P: eLlLloner, as mannlng agenL, ls [olnLly and severally llable
wlLh lLs prlnclpal, hll Carrler Shlpplng Agency, for prlvaLe
respondents claim. 1hls concluslon ls ln accordance wlLh

SecLlon 1 of 8ule ll of Lhe CLA 8ules and 8egulaLlons. !olnL and
solldary llablllLy ls meanL Lo assure aggrleved workers of
lmmedlaLe and sufflclenL paymenL of whaL ls due Lhem.1he facL
LhaL peLlLloner and lLs prlnclpal have already LermlnaLed Lhelr
agency agreemenL does noL relleve Lhe former of lLs llablllLy.
8. kLSCNSI8ILI1ILS CI LCCAL kLCkUI1MLN1
AGLNCILS]LIA8ILI1 ICk ADAMAGLS AND
A11.S FEES

Sect|on 10. Mooey clolms.
1he llablllLy of Lhe prlnclpal/employer and Lhe
recrulLmenL/placemenL agency for any and all clalms under Lhls
secLlon shall be [olnL and several. 1hls provlslon shall be
lncorporaLed ln Lhe conLracL for overseas employmenL and shall
be a condlLlon precedenL for lLs approval. 1he performance
bond Lo de flled by Lhe recrulLmenL/placemenL agency, as
Such llablllLles shall conLlnue durlng Lhe enLlre perlod or
duraLlon of Lhe employmenL conLracL and shall noL be affecLed
by any subsLlLuLlon, amendmenL or modlflcaLlon made locally or
ln a forelgn counLry of Lhe sald conLracL.
Any compromlse/amlcable seLLlemenL or volunLary agreemenL
on money clalms lncluslve of damages under Lhls secLlon shall be
pald wlLhln LhlrLy (30) days from approval of Lhe seLLlemenL by
Lhe approprlaLe auLhorlLy.
ln case of LermlnaLlon of overseas employmenL wlLhouL [usL,
valld or auLhorlzed cause as deflned by law or conLracL, or any
unauLhorlzed deducLlons from Lhe mlgranL worker's salary, Lhe
worker shall be enLlLled Lo Lhe full relmbursemenL lf hls
placemenL fee and Lhe deducLlons made wlLh lnLeresL aL Lwelve
percenL (12) per annum, plus hls salarles for Lhe unexplred
porLlon of hls employmenL conLracL or for Lhree (3) monLhs for
every year of Lhe unexplred Lerm, whlchever ls less.

L. IUkISDIC1ICN
1. k1C CVLk CkIMINAL AC1ICN AkISING IkCM
ILLLGAL kLCkUI1MLN1

Sect|on 9. veooe. A crlmlnal acLlon arlslng from lllegal
recrulLmenL as deflned hereln shall be flled wlLh Lhe 8eglonal
1rlal CourL of Lhe provlnce or clLy where Lhe offense was
commlLLed or where Lhe offended parLy acLually resldes aL Lhe
same Llme of Lhe commlsslon of Lhe offense: rovlded, 1haL Lhe
courL where Lhe crlmlnal acLlon ls flrsL flled shall acqulre
[urlsdlcLlon Lo Lhe excluslon of oLher courLs. rovlded, however,
1haL Lhe afore sLaLed provlslons shall also apply Lo Lhose
crlmlnal acLlons LhaL have already been flled ln courL aL Lhe Llme
of Lhe effecLlvlLy of Lhls AcL.

2. LA CVLk MCNL CLAIMS AkISING CU1 CI
AN LL-Lk kLLA1ICNSnI

Sect|on 10. Mooey clolms. noLwlLhsLandlng any provlslon of
law Lo Lhe conLrary, Lhe Labor ArblLers of Lhe naLlonal Labor
8elaLlons Commlsslon (nL8C) shall have Lhe orlglnal and
excluslve [urlsdlcLlon Lo hear and declde, wlLhln nlneLy (90)
calendar days afLer Lhe flllng of Lhe complalnL, Lhe clalms arlslng
ouL of an employer-employee relaLlonshlp or by vlrLue of any
law or conLracL lnvolvlng llllplno workers for overseas
deploymenL lncludlng clalms for acLual, moral, exemplary and
oLher forms of damage. ConslsLenL wlLh Lhls mandaLe, Lhe nL8C
shall endeavor Lo updaLe and keep abreasL wlLh Lhe
developmenLs ln Lhe global servlces lndusLry.

noLe: A clause ln RA 8042, Sec. 10 which states that: for 3
months for every year of the unexpired term, whichever is less,
was declared unconsLlLuLlonal.

LCkLN2C 1. 1ANGGA-AN VS nILIINL 1kANSMAkINL
CAkkILkS (2013
l: Lorenzo enLered lnLo an overseas employmenL conLracL wlLh
hlllpplne 1ransmarlne Carrlers for and ln behalf of lLs forelgn
employer, unlverse 1ankshlp. Pe was used as a scapegoaL by hls
superlors and was repaLrlaLed.
P: Lorenzo was lllegally dlsmlssed and slnce hls employmenL
conLracL ls for 6 monLhs, he should be pald hls salarles for Lhe
unexplred porLlon of hls employmenL conLracL, whlch ls
appllcable Lo all Lhose wlLh an employmenL conLracL of less Lhan
one year. 1he CourL also remlnded Lhe lower courLs, especlally
the CA, to apply SCs labor pronouncemenLs wlLh uLmosL care
and cauLlon, Laklng Lo mlnd LhaL ln Lhe very hearL of Lhe [udlclal
sysLem, labor cases occupy a speclal place. More Lhan Lhe SLaLe
guaranLees of proLecLlon of labor and securlLy of Lenure, labor
dlspuLes lnvolve Lhe fundamenLal survlval of Lhe employees and
Lhelr famllles, who depend upon Lhe former for all Lhe baslc
necesslLles ln llfe.

3. CLA CVLk ADMINIS1kA1IVL CASLS

A. kL-LMLCMLN1]kLCkUI1MLN1
VICLA1ICN CASLS

Sect|on 6. IotlsJlctloo of tbe lOA. (a) 1he CLA shall
exerclse orlglnal and excluslve [urlsdlcLlon Lo hear and declde:
All pre-employmenL/recrulLmenL vlolaLlon cases whlch are
admlnlsLraLlve ln characLer, lnvolvlng or arlslng ouL of vlolaLlons
of 8ules and 8egulaLlons relaLlng Lo llcenslng and reglsLraLlon,
lncludlng refund of fees collecLed from Lhe workers or vlolaLlon
of Lhe condlLlons for lssuance of llcense or auLhorlLy Lo recrulL
workers,

8. DISCILINAk CASLS AND C1nLk SLCIAL
CASLS

Sect|on 6. IotlsJlctloo of tbe lOA. (b) ulsclpllnary acLlon
cases and oLher speclal cases, whlch are admlnlsLraLlve ln
characLer, lnvolvlng employers, prlnclpals, conLracLlng parLners
and ClWs processed by Lhe CLA.

LAS1LkN MLDI1LkkANLAN MAkI1IML LD. &AGLMAk
MANNING AGLNC, INC. VSLS1ANISLACSUkIC (2012)

l: Anl and oLhers were former crew members of M1 Seadance, a
vessel owned by LasLern MedlLerranean and operaLed by
Agemar Mannlng Agency. 1hey flled a complalnL for dlsclpllnary
acLlon based on breach of dlsclpllne and for Lhe relmbursemenL
of Lhe wage lncreases ln Lhe Workers AsslsLance and
Ad[udlcaLlon Cfflce of Lhe CLA. uurlng Lhe pendency of Lhe
admlnlsLraLlve complalnL ln Lhe CLA, 8epubllc AcL no. 8042
(MlgranL Workers and Cverseas llllplnos AcL of 1993) Look effecL
whlch vesLed orlglnal and excluslve [urlsdlcLlon over all money
clalms arlslng ouL of employer-employee relaLlonshlps lnvolvlng
overseas llllplno workers Lo Lhe Labor ArblLers.

P: AlLhough 8A 8042 Lransferred Lhe orlglnal and excluslve
[urlsdlcLlon Lo hear and declde money clalms lnvolvlng overseas
llllplno workers from Lhe CLA Lo Lhe Labor ArblLers, Lhe law dld
noL remove from Lhe CLA Lhe orlglnal and excluslve [urlsdlcLlon
Lo hear and declde all dlsclpllnary acLlon cases and oLher speclal
cases admlnlsLraLlve ln characLer lnvolvlng such workers. 1he
obvlous lnLenL of 8A 8042 was Lo have Lhe CLA focus lLs efforLs
ln resolvlng all admlnlsLraLlve maLLers affecLlng and lnvolvlng
such workers. 1hls lnLenL was even expressly recognlzed ln Lhe
Cmnlbus 8ules and 8egulaLlons lmplemenLlng Lhe MlgranL
Workers and Cverseas llllplnos AcL of 1993.

8.2. U8LIC SLC1Ck AGLNCILS LMLCMLN1
CIIICLS

Art|c|e 12. 5totemeot of objectlves. lL ls Lhe pollcy of Lhe
SLaLe:
1o sLrengLhen Lhe neLwork of publlc employmenL offlces and

Art|c|e 14. mploymeot ptomotloo. 1he SecreLary of Labor
shall have Lhe power and auLhorlLy:
1o organlze and esLabllsh new employmenL offlces ln addlLlon Lo
Lhe exlsLlng employmenL offlces under Lhe ueparLmenL of Labor
as Lhe need arlses,

LkLCU1IVL CkDLk NC. 247 kLCkGANI2ING 1nL CLA
Sect|on 3. lowets ooJ looctloos. ln Lhe pursulL of lLs
mandaLe, Lhe AdmlnlsLraLlon shall have Lhe followlng powers
and funcLlons:
a. 8egulaLe prlvaLe secLor parLlclpaLlon ln Lhe recrulLmenL
and overseas placemenL of workers by seLLlng up a
llcenslng and reglsLraLlon sysLem,

b. lormulaLe and lmplemenL, ln coordlnaLlon wlLh
approprlaLe enLlLles concerned, when necessary, a sysLem
for promoLlng and monlLorlng Lhe overseas employmenL
of llllplno workers Laklng lnLo conslderaLlon Lhelr welfare
and Lhe domesLlc manpower requlremenLs,

c. roLecL Lhe rlghLs of llllplno workers for overseas
employmenL Lo falr and equlLable recrulLmenL and
employmenL pracLlces and ensure Lhelr welfare,

d. Lxerclse orlglnal and excluslve [urlsdlcLlon Lo hear and
declde all clalms arlslng ouL of an employer-employee
relaLlonshlp or by vlrLue of any law or conLracL lnvolvlng
llllplno workers for overseas employmenL lncludlng Lhe
dlsclpllnary cases, and all pre-employmenL cases whlch are
admlnlsLraLlve ln characLer lnvolvlng or arlslng ouL of
vlolaLlon or requlremenL laws, rules and regulaLlons
lncludlng money clalms arlslng Lherefrom, or vlolaLlon of
Lhe condlLlons for lssuance of llcense or auLhorlLy Lo
recrulL workers.

e. All prohlblLed recrulLmenL acLlvlLles and pracLlces whlch
are penal ln characLer as enumeraLed and deflned under
and by vlrLue of exlsLlng laws, shall be prosecuLed ln Lhe
regular courLs ln close coordlnaLlon wlLh Lhe approprlaLe
ueparLmenLs and agencles concerned,


f. MalnLaln a reglsLry of skllls for overseas placemenL,

g. 8ecrulL and place workers Lo servlce Lhe requlremenLs for
Lralned and compeLenL llllplno workers by forelgn
governmenLs and Lhelr lnsLrumenLallLles and such oLher
employers as publlc lnLeresL may requlre,

h. romoLe Lhe developmenL of skllls and careful selecLlon of
llllplno workers,

l. underLake overseas markeL developmenL acLlvlLles for
placemenL of llllplno workers,

[. Secure Lhe besL Lerms and condlLlons of employmenL of
llllplno conLracL workers and ensure compllance
LherewlLh,

k. romoLe and proLecL Lhe well-belng of llllplno workers
overseas,

l. uevelop and lmplemenL programs for Lhe effecLlve
monlLorlng of reLurnlng conLracL workers, promoLlng Lhelr
re-Lralnlng and re-employmenL or Lhelr smooLh re-
lnLegraLlon lnLo Lhe malnsLream of naLlonal economy ln
coordlnaLlon wlLh oLher governmenL agencles,

m. lnsLlLuLe a sysLem for ensurlng falr and speedy dlsposlLlon
of cases lnvolvlng vlolaLlon or recrulLmenL rules and
regulaLlons as well as vlolaLlon of Lerms and condlLlons of
overseas employmenL,

n. LsLabllsh a sysLem for speedy and efflclenL enforcemenL of
declslons lald down Lhrough Lhe exerclse of lLs
ad[udlcaLory funcLlon,

o. LsLabllsh and malnLaln close relaLlonshlp and enLer lnLo
[olnL pro[ecLs wlLh Lhe ueparLmenL of lorelgn Affalrs,
hlllpplne 1ourlsm AuLhorlLy, Manlla lnLernaLlonal AlrporL
AuLhorlLy, ueparLmenL of !usLlce, ueparLmenL of 8udgeL
and ManagemenL and oLher relevanL governmenL enLlLles,
ln Lhe pursulL of lLs ob[ecLlves. 1he AdmlnlsLraLlon shall
also esLabllsh and malnLaln [olnL pro[ecLs wlLh prlvaLe
organlzaLlons, domesLlc or forelgn, ln Lhe furLherance of
lLs ob[ecLlves.

C. SANC1ICNS
C.1. LCCAL LMLCMLN1

kA 8042
Art|c|e 39. leooltles.
a. 1he penalLy of llfe lmprlsonmenL and a flne of Cne
Pundred 1housand esos (1000,000.00) shall be lmposed
lf lllegal recrulLmenL consLlLuLes economlc saboLage as
deflned hereln,

b. Any llcensee or holder of auLhorlLy found vlolaLlng or
causlng anoLher Lo vlolaLe any provlslon of Lhls 1lLle or lLs
lmplemenLlng rules and regulaLlons shall, upon convlcLlon
Lhereof, suffer Lhe penalLy of lmprlsonmenL of noL less
Lhan Lwo years nor more Lhan flve years or a flne of noL
less Lhan 10,000 nor more Lhan 30,000, or boLh such
lmprlsonmenL and flne, aL Lhe dlscreLlon of Lhe courL,

c. Any person who ls nelLher a llcensee nor a holder of
auLhorlLy under Lhls 1lLle found vlolaLlng any provlslon
Lhereof or lLs lmplemenLlng rules and regulaLlons shall,
upon convlcLlon Lhereof, suffer Lhe penalLy of
lmprlsonmenL of noL less Lhan four years nor more Lhan
elghL years or a flne of noL less Lhan 20,000 nor more
Lhan 100,000 or boLh such lmprlsonmenL and flne, aL Lhe
dlscreLlon of Lhe courL,

d. lf Lhe offender ls a corporaLlon, parLnershlp, assoclaLlon or
enLlLy, Lhe penalLy shall be lmposed upon Lhe offlcer or
offlcers of Lhe corporaLlon, parLnershlp, assoclaLlon or
enLlLy responslble for vlolaLlon, and lf such offlcer ls an
allen, he shall, ln addlLlon Lo Lhe penalLles hereln
prescrlbed, be deporLed wlLhouL furLher proceedlngs,

e. ln every case, convlcLlon shall cause and carry Lhe
auLomaLlc revocaLlon of Lhe llcense or auLhorlLy and all
Lhe permlLs and prlvlleges granLed Lo such person or enLlLy
under Lhls 1lLle, and Lhe forfelLure of Lhe cash and sureLy
bonds ln favor of Lhe Cverseas LmploymenL uevelopmenL
8oard or Lhe naLlonal Seamen 8oard, as Lhe case may be,
boLh of whlch are auLhorlzed Lo use Lhe same excluslvely
Lo promoLe Lhelr ob[ecLlves.

2. CVLkSLAS LMLCMLN1

Sect|on 7. leooltles.
Any person found gullLy of lllegal recrulLmenL shall suffer Lhe
penalLy of lmprlsonmenL of noL less Lhan Lwelve (12) years and
one (1) day buL noL more Lhan LwenLy (20) years and a flne of
noL less Lhan Cne mllllon pesos (1,000,000.00) nor more Lhan
1wo mllllon pesos (2,000,000.00).

1he penalLy of llfe lmprlsonmenL and a flne of noL less Lhan 1wo
mllllon pesos (2,000,000.00) nor more Lhan llve mllllon pesos

(3,000,000.00) shall be lmposed lf lllegal recrulLmenL
consLlLuLes economlc saboLage as deflned Lhereln.

rovlded, however, 1haL Lhe maxlmum penalLy shall be lmposed
lf Lhe person lllegally recrulLed ls less Lhan elghLeen (18) years of
age or commlLLed by a non-llcensee or non-holder of auLhorlLy.

Any person found gullLy of any of Lhe prohlblLed acLs shall suffer
Lhe penalLy of lmprlsonmenL of noL less Lhan slx (6) years and
one (1) day buL noL more Lhan Lwelve (12) years and a flne of noL
less Lhan llve hundred Lhousand pesos (300,000.00) nor more
Lhan Cne mllllon pesos (1,000,000.00).

lf Lhe offender ls an allen, he or she shall, ln addlLlon Lo Lhe
penalLles hereln prescrlbed, be deporLed wlLhouL furLher
proceedlngs.

ln every case, convlcLlon shall cause and carry Lhe auLomaLlc
revocaLlon of Lhe llcense or reglsLraLlon of Lhe
recrulLmenL/mannlng agency, lendlng lnsLlLuLlons, Lralnlng
school or medlcal cllnlc.

lllegal recrulLmenL shall be consldered as an offense lnvolvlng
economlc saboLage lf any of Lhe quallfylng clrcumsLances exlsLs:

1. When lllegal recrulLmenL ls commlLLed by a syndlcaLe (l.e. lf lL
ls carrled ouL by a group of Lhree or more persons consplrlng
and/or confederaLlng wlLh one anoLher)

2. When lllegal recrulLmenL ls commlLLed ln large scale l.e. lf lL ls
commlLLed agalnsL Lhree or more persons lndlvldually or as a
group

WnLkL 1C IILL?

Crlm acLlon arlslng from lllegal recrulLmenL shall be flled wlLh
Lhe 81C of Lhe provlnce or clLy where Lhe offense was
commlLLed or where Lhe offended parLy was acLually resldlng aL
Lhe Llme of Lhe commlsslon of Lhe offense.

rescrlpLlon:
1. lllegal recrulLmenL: 3 years
2. lllegal recrulLmenL lnvolvlng economlc saboLage: 20 years

Art|c|e 3S. 5ospeosloo ooJ/ot coocellotloo of llceose ot
ootbotlty. 1he MlnlsLer of Labor shall have Lhe power Lo
suspend or cancel any llcense or auLhorlLy Lo recrulL employees
for overseas employmenL for vlolaLlon of rules and regulaLlons
lssued by Lhe MlnlsLry of Labor, Lhe Cverseas LmploymenL
uevelopmenL 8oard, or for vlolaLlon of Lhe provlslons of Lhls and
oLher appllcable laws, Ceneral Crders and LeLLers of
lnsLrucLlons.

SUSLNSICN]CANCLLLA1ICN CI LICLNSL
AcLs prohlblLed ln ArLlcle 34 are grounds for
suspenslon/cancellaLlon of llcense or auLhorlLy.

1he SCLL and Lhe CLA have concurrenL [urlsdlcLlon Lo
suspend or cancel a license/authority. The SOLEs
auLhorlLy ls found ln Sec.33. ursuanL Lo hls rule-
maklng power under SecLlon 36, he may vesL auLhorlLy
Lo Lhe CLA Lo conducL necessary proceedlngs for
suspenslon/cancellaLlon or llcense/auLhorlLy.

LIA8ILI1
A recrulLmenL agency ls solldarlly llable wlLh Lhe
forelgn prlnclpal for Lhe unpald salarles of Lhe worker
lL recrulLed.
1he agency may sLlll be sued for vlolaLlon of conLracL
even lf Lhe recrulLmenL agency and prlnclpal have
severed Lhelr agency agreemenL aL Lhe Llme of Lhe
petitioners injury, IF no notice of such severance was
glven Lo peLlLloner.
CbllgaLlons ln recrulLmenL agreemenL are noL
coLermlnous wlLh Lhe Lerms of Lhe agreemenL. 1hus, lf
Lhe agenL and prlnclpal declde Lo end Lhe conLracL,
Lhey are sLlll llable Lo Lhelr workers unLll Lhe explraLlon
of Lhelr conLracLs provlded ln Lhe recrulLmenL
agreemenL.


2. ALILN LMLCMLN1
kLGULA1ICN

A. CCVLkAGL

Art. 40. mploymeot petmlt of ooo-teslJeot olleos. - Any allen
seeklng admlsslon Lo Lhe hlllpplnes for employmenL purposes
and any domesLlc or forelgn employer who deslres Lo engage an
allen for employmenL ln Lhe hlllpplnes shall obLaln an
employmenL permlL from Lhe ueparLmenL of Labor.

1he employmenL permlL may be lssued Lo a non-resldenL allen
or Lo Lhe appllcanL employer afLer a deLermlnaLlon of Lhe non-
avallablllLy of a person ln Lhe hlllpplnes who ls compeLenL, able
and wllllng aL Lhe Llme of appllcaLlon Lo perform Lhe servlces for
whlch Lhe allen ls deslred.

lor an enLerprlse reglsLered ln preferred areas of lnvesLmenLs,
sald employmenL permlL may be lssued upon recommendaLlon
of Lhe governmenL agency charged wlLh Lhe supervlslon of sald
reglsLered enLerprlse.

DC 97-09
Sec.1. Coverage. All forelgn naLlonals who lnLend Lo engage ln
galnful employmenL ln Lhe hlllpplnes shall apply for AL.

CMNI8US kULLS: kULL kIV CI 8CCk I
EI36DBP Q5 3)=.#08.. 1hls 8ule shall apply Lo all allens
employed or seeklng employmenL ln Lhe hlllpplnes, and Lhelr
presenL or prospecLlve employers.

LkLM1ICN

ku|e I.2. 1he followlng caLegorles of forelgn naLlonals are
exempL from securlng an employmenL permlL:

DC 97-09
Sec.2. Lxempt|on.
a. All members of dlplomaLlc servlce and forelgn
governmenL offlclals accredlLed by and wlLh reclproclLy
arrangemenL wlLh Lhe hlllpplne CovernmenL
b. Cfflcers and sLaff of lnLernaLlonal organlzaLlons of whlch
hlllpplne CovernmenL ls a member, and Lhelr leglLlmaLe
spouses deslrlng Lo work ln Lhe hlllpplnes
c. lorelgn naLlonals elecLed as members of Covernlng 8oard
who do noL occupy any oLher poslLlon, buL have only voLlng
rlghLs ln Lhe corporaLlon
d. All forelgn naLlonals granLed exempLlon by law
e. Cwners and represenLaLlves of forelgn prlnclpals whose
companles are accredlLed by CLA, who come Lo hlllpplnes for
a llmlLed perlod and solely for purpose of lnLervlewlng llllplno
appllcanLs for employmenL abroad
f. lorelgn naLlonals who come Lo hlllpplnes Lo Leach,
presenL or conducL research sLudles ln unlverslLles and colleges
as vlslLlng, exchange or ad[uncL professors under formal
agreemenLs beLween hlllpplne unlverslLy or college and a
forelgn one, or beLween hlllpplne governmenL and forelgn one,
provlded LhaL an exempLlon ls on reclprocal basls
g. ermanenL resldenL forelgn naLlonals,
probaLlonary/Lemporary resldenL vlsa holders

non-resldenL allens requlred Lo secure employmenL permlL.
8esldenL allens are noL requlred.

lmmlgranLs and resldenL allens: Allen LmploymenL 8eglsLraLlon
CerLlflcaLe

Powever, forelgners may noL be employed ln cerLaln
nationalized businesses.

1. AnLl-dummy law prohlblLs employmenL of allens ln enLlLles
LhaL own or conLrol a rlghL reserved by law only Lo llllplnos or
corporations 60% of which are Filipinos.
2. llnanclng companles (same 60 rule)
3. Mass medla enLerprlses

LnLerprlses reglsLered under Lhe Cmnlbus lnvesLmenLs Code
may for a llmlLed perlod employ forelgn naLlonals ln Lechnlcal,
supervlsory, or advlsory poslLlons.

ALMCDILL VS NLkC (1993)

l: larle was hlred as CosL AccounLlng Manager of 8ayLheon
hlls, lnc. buL afLer some Llme, hls poslLlon was abollshed
because of redundancy. Pe clalms LhaL Lhe funcLlons of hls
poslLlon were Lhen absorbed by Lhe ayroll/Mls/llnance
ueparLmenL under Lhe managemenL of uanny Ang 1an Chal, a
resldenL allen wlLhouL any worklng permlL from Lhe ueparLmenL
of Labor and LmploymenL as requlred by law.


P: 1he characLerlzaLlon of an employee's servlces as no longer
necessary or susLalnable, and Lherefore, properly Lermlnable,
was an exerclse of buslness [udgmenL on Lhe parL of Lhe
employer and ls noL sub[ecL Lo dlscreLlonary revlew on Lhe parL
of Lhe Labor ArblLer nor of Lhe nL8C so long, of course, as
vlolaLlon of law or merely arblLrary and mallclous acLlon ls noL
shown. Also, ArLlcle 40 of Lhe Labor Code whlch requlres
employmenL permlL refers Lo non-resldenL allens. Slnce Ang 1an
Chal ls a resldenL allen, he does noL fall wlLhln Lhe amblL of Lhe
provlslon.

8. CCNDI1ICNS ICk GkAN1 CI LkMI1

CMNI8US kULLS: kULL kIV CI 8CCk I
EI36DBP R5 <.H"$#.4.*(% ,)# .497)>4.*( 9.#4$( 0997$'0($)*.
1he appllcaLlon for an employmenL permlL shall be
accompanled by Lhe followlng:
(a) Currlculum vlLae duly slgned by Lhe appllcanL lndlcaLlng hls
educaLlonal background, hls work experlence and oLher daLa
showlng LhaL he possesses hlgh Lechnlcal skllls ln hls Lrade or
professlon,
(b) ConLracL of employmenL beLween Lhe employer and Lhe
prlnclpal whlch shall embody Lhe followlng, among oLhers:
(1) 1haL Lhe non-resldenL allen worker shall comply wlLh all
appllcable laws and rules and regulaLlons of Lhe hlllpplnes,
(2) 1haL Lhe non-resldenL allen worker and Lhe employer shall
blnd Lhemselves Lo Lraln aL leasL Lwo (2) llllplno undersLudles for
a perlod Lo be deLermlned by Lhe SecreLary of Labor and
LmploymenL, and
(3) 1haL he shall noL engage ln any galnful employmenL oLher
Lhan LhaL for whlch he was lssued a permlL.
(c) A deslgnaLlon by Lhe employer of aL leasL Lwo (2)
undersLudles for every allen worker. Such undersLudles musL be
Lhe mosL ranklng regular employees ln Lhe secLlon or
deparLmenL for whlch Lhe expaLrlaLes are belng hlred Lo ensure
Lhe acLual Lransfer of Lechnology.

EI36DBP S5 D%%"0*'.% ), .497)>4.*( 9.#4$(. 1he SecreLary
of Labor and LmploymenL may lssue an employmenL permlL Lo
Lhe appllcanL based on:
a) Compllance by Lhe appllcanL and hls employer wlLh Lhe
requlremenLs of SecLlon 2 hereof,
b) 8eporL of Lhe 8ureau ulrecLor as Lo Lhe avallablllLy or non
avallablllLy of any person ln Lhe hlllpplnes who ls compeLenL,
able, and wllllng Lo do Lhe [ob for whlch Lhe servlces of Lhe
appllcanL are deslred,
c) Pls assessmenL as Lo wheLher or noL Lhe employmenL of Lhe
appllcanL wlll redound Lo Lhe naLlonal lnLeresL,
d) AdmlsslblllLy of Lhe allen as cerLlfled by Lhe Commlsslon on
lmmlgraLlon and ueporLaLlon,
e) 1he recommendaLlon of Lhe 8oard of lnvesLmenLs or oLher
approprlaLe governmenL agencles lf Lhe appllcanL wlll be
employed ln preferred areas of lnvesLmenLs or ln accordance
wlLh lmperaLlves of economlc developmenLs, and
f) aymenLs of a 100.00 fee.

ACIIIC CCNSUL1AN1S IN1LkNA1ICNAL ASIA, INC. VS
SCnCNILLD (2007)

l: klaus ls a Canadlan clLlzen was employed by aclflc
ConsulLanLs lnLernaLlonal of !apan(Cl!), Lhrough Pelnrechsen,
as SecLor Manager of aclcon hlllpplnes, lnc.(l), a subsldlary
of Cl!. klaus Lhen flled wlLh l several money clalms and
complalnL for lllegal dlsmlssal. eLlLloners are now clalmlng LhaL
LA and nL8C had no [urlsdlcLlon slnce lL was Cl! who employed
hlm and slnce lL was a forelgn corporaLlon, complalnL should
have been flled ln !apan.

P: LA and nL8C have [urlsdlcLlon because l ls Lhe employer of
klaus, as Lhe four elemenLs of Lhe employer-employee
relaLlonshlp exlsLs. Also, l averred LhaL klaus was Lhelr
employee when Lhey applled for hls AL and ls esLopped from
clalmlng oLherwlse. As proof, l appended a copy of
respondents employment contract which is one of the
requlremenLs for Lhe lssuance of an employmenL permlL as
requlred by SecLlon 3, 8ule xlv (LmploymenL of Allens) of Lhe
Cmnlbus 8ules.

C. VALIDI1 CI AL

Cmn|bus ku|es: ku|e kIV of 8ook I
EI36DBP K5 T"#0($)* ), .497)>4.*( 9.#4$(. Sub[ecL Lo
renewal upon showlng of good cause, Lhe employmenL permlL
shall be valld for a mlnlmum perlod of one (1) year sLarLlng from
Lhe daLe of lLs lssuance unless sooner revoked by Lhe SecreLary
of Labor and LmploymenL for vlolaLlon of any provlslons of Lhe
Code or of Lhese 8ules.

DC 97-09
Sec. 11. Va||d|ty. AL shall be valld for Lhe poslLlon and company
for whlch lL was lssued for 1 year, unless employmenL conLracL,
consulLancy servlces or oLher modes of engagemenL provldes
oLherwlse, whlch ln no case shall exceed 3 years.


D. kLVCCA1ICN, CANCLLLA1ICN, GkCUNDS-
DUL kCCLSS

Sec. 13. Cance||at|on or revocat|on. 1he 8eglonal ulrecLor may,
moLu proprlo or upon peLlLlon, cancel or revoke an AL afLer
due process, based on Lhe followlng grounds:
a. non-compllance wlLh any requlremenLs or condlLlons for
whlch AL was lssued
b. MlsrepresenLaLlon of facLs ln Lhe appllcaLlon
c. Submlsslon of falslfled or Lampered documenLs
d. MerlLorlous ob[ecLlon or lnfo agalnsL Lhe employmenL of
Lhe forelgn naLlonal ad deLermlned by 8eglonal ulr
e. lorelgn naLlonal has been convlcLed of a crlmlnal offense
or a fuglLlve from [usLlce
f. Lmployer LermlnaLed Lhe employmenL of Lhe forelgn
naLlonal
Sec. 14. Appeal. Any aggrleved parLy may flle an appeal wlLh Sec
wlLhln 10 days afLer recelpL of Lhe copy of
denlal/suspenslon/cancellaLlon/revocaLlon order.
1he declslon of Lhe Sec shall be flnal and execuLory unless a
moLlon for reconslderaLlon ls flled wlLhln 10 days afLer recelpL of
Lhe declslon of Sec. no second M8 shall be enLerLalned.


3. DLVLLCMLN1 CI nUMAN
kLSCUkCLS

A. MANCWLk DLVLLCMLN1

1. DLIINI1ICN

Art. 44 (a) Manpower shall mean that portion of the nations
populaLlon whlch has acLual or poLenLlal capablllLy Lo conLrlbuLe
dlrecLly Lo Lhe producLlon of goods and servlces.

kA 7796 Sec 4 (b). "Skllls uevelopmenL" shall mean Lhe process
Lhrough whlch learners and workers are sysLemaLlcally provlded
wlLh learnlng opporLunlLles Lo acqulre or upgrade, or boLh, Lhelr
ablllLy, knowledge and behavlor paLLern requlred as
quallflcaLlons for a [ob or range of [obs ln a glven occupaLlonal
area.

kA 7796 Sec 4 (c). Technical Education" shall refer Lo Lhe
educaLlon process deslgned aL posL-secondary and lower LerLlary
levels, offlclally recognlzed as non-degree programs almed aL
preparlng Lechnlclans, para-professlonals and oLher caLegorles
of mlddle-level workers by provldlng Lhem wlLh a broad range of
general educaLlon, LheoreLlcal, sclenLlflc and Lechnologlcal
sLudles, and relaLed [ob skllls Lralnlng.

kA 7796 Sec 4 (e). "Mlddle-Level Manpower" refers Lo Lhose:
who have acqulred pracLlcal skllls and knowledge Lhrough formal
or non-formal educaLlon and Lralnlng equlvalenL Lo aL leasL a
secondary educaLlon buL preferably aL posL-secondary educaLlon
wlLh a correspondlng degree of dlploma, or skllled workers who
have become hlghly compeLenL ln Lhelr Lrade or crafL as aLLesLed
by lndusLry.

2. GLNLkAL CLIC

kA 7796 Sec 2. lL ls hereby declared Lhe pollcy of Lhe SLaLe Lo
provlde relevanL, accesslble, hlgh quallLy and efflclenL Lechnlcal
educaLlon and skllls developmenL ln supporL of Lhe developmenL
of hlgh quallLy llllplno mlddle-level manpower responslve Lo and
ln accordance wlLh hlllpplne developmenL goals and prlorlLles.

1he SLaLe shall encourage acLlve parLlclpaLlon of varlous
concerned secLors, parLlcularly prlvaLe enLerprlses, belng dlrecL
parLlclpanLs ln and lmmedlaLe beneflclarles of a Lralned and
skllled workforce, ln provldlng Lechnlcal educaLlon and skllls
developmenL opporLunlLles.

3. SLCIIIC GCALS AND C8ILC1IVLS

kA 7796 Sec . 3. 5totemeot of Cools ooJ Objectlves. - lL ls Lhe
goal and ob[ecLlve of Lhls AcL Lo:
a) romoLe and sLrengLhen Lhe quallLy of Lechnlcal
educaLlon and skllls developmenL programs Lo aLLaln
lnLernaLlonal compeLlLlveness,
b) locus Lechnlcal educaLlon and skllls developmenL on
meeLlng Lhe changlng demands for quallLy mlddle-level
manpower,
c) Lncourage crlLlcal and creaLlve Lhlnklng by dlssemlnaLlng
Lhe sclenLlflc and Lechnlcal knowledge base of mlddle-
level manpower developmenL programs,
d) 8ecognlze and encourage Lhe complemenLary roles of
publlc and prlvaLe lnsLlLuLlons ln Lechnlcal educaLlon and
skllls developmenL and Lralnlng sysLems, and
e) lnculcaLe deslrable values Lhrough Lhe developmenL of
moral characLer wlLh emphasls on work eLhlc, self-
dlsclpllne, self-rellance and naLlonallsm.

8. 1kAINING ANG LMLCMLN1 CI SLCIAL
WCkkLkS AkLN1ICLS AND LLAkNLkS

1. CLIC C8ILC1IVLS

Art. S7. E(0(.4.*( ), )1U.'($=.%. - 1hls 1lLle alms:
1) 1o help meeL Lhe demand of Lhe economy for Lralned
manpower,
2) 1o esLabllsh a naLlonal apprenLlceshlp program
Lhrough Lhe parLlclpaLlon of employers, workers and
governmenL and non-governmenL agencles, and
3) 1o esLabllsh apprenLlceshlp sLandards for Lhe
proLecLlon of apprenLlces.

2. DLIINI1ICN

Art. S8 (b). An V099#.*($'.V ls a worker who ls covered by a
wrlLLen apprenLlceshlp agreemenL wlLh an lndlvldual employer
or any of Lhe enLlLles recognlzed under Lhls ChapLer

Art. 73. /.0#*.#% &.,$*.&. - Learners are persons hlred as
Lralnees ln seml-skllled and oLher lndusLrlal occupaLlons whlch
are non-apprenLlceable and whlch may be learned Lhrough
pracLlcal Lralnlng on Lhe [ob ln a relaLlvely shorL perlod of Llme
whlch shall noL exceed Lhree (3) monLhs.


kA 7794 Sec 4 ([) Apprenticeship" training within employment
wlLh compulsory relaLed LheoreLlcal lnsLrucLlon lnvolvlng a
conLracL beLween an apprenLlce and an employer on an
approved apprenLlceable occupaLlon
(k) "ApprenLlce" ls a person undergolng Lralnlng for an
approved apprenLlceable occupaLlon durlng an apprenLlceshlp
agreemenL
(|) "ApprenLlceshlp AgreemenL" ls a conLracL whereln a
prospecLlve employer blnds hlmself Lo Lraln Lhe apprenLlce who
ln Lurn accepLs Lhe Lerms of Lralnlng for a recognlzed
apprenLlceable occupaLlon emphaslzlng Lhe rlghLs, duLles and
responslblllLles of each parLy
(m). "ApprenLlceable CccupaLlon" ls an occupaLlon offlclally
endorsed by a LrlparLlLe body and approved for apprenLlceable
by Lhe AuLhorlLy
(n) Learners" refers to persons hired as trainees in semi-skllled
and oLher lndusLrlal occupaLlons whlch are non-apprenLlceable.
Learnershlp programs musL be approved by Lhe AuLhorlLy.
ApprenLlceshlp ls Lhe arrangemenL and Lhe perlod when an
upcomlng worker undergoes hands-on Lralnlng, more or less
formal, Lo learn Lhe ropes of a skllled [ob.

8equlslLes for LmploymenL of ApprenLlces:

1. Lmployer should be engaged ln a buslness LhaL ls consldered a
hlghly Lechnlcal lndusLry (Lrade, buslness, enLerprlse, whlch
uLlllzes appllcaLlon of advanced Lechnology)
2. !ob should be classlfled as an apprenLlceable occupaLlon.

ApprenLlceable Age:
14 years under Labor Code, buL 13 years under Lhe l88.
Powever, confllcL beLween Lhe Lwo ls rendered mooL by 8A 7610
as amended by 8A 7638 whlch prohlblLs employmenL of chlldren
below 13 years of age.

3. ALLCWLD LMLCMLN1 AND WnLN

Art. 60. mploymeot of oppteotlces. - Cnly employers ln Lhe
hlghly Lechnlcal lndusLrles may employ apprenLlces and only ln
apprenLlceable occupaLlons approved by Lhe SecreLary of Labor
and LmploymenL.

Art. 74. wbeo leotoets moy be blteJ. - Learners may be
employed when no experlenced workers are avallable, Lhe
employmenL of learners ls necessary Lo prevenL curLallmenL of
employmenL opporLunlLles, and Lhe employmenL does noL
creaLe unfalr compeLlLlon ln Lerms of labor cosLs or lmpalr or
lower worklng sLandards.

kA 7794 Sec 4 (m) "ApprenLlceable CccupaLlon" ls an occupaLlon
offlclally endorsed by a LrlparLlLe body and approved for
apprenLlceable by Lhe AuLhorlLy

LLAkNLkSnI VS. AkLN1ICLSnI

SlmllarlLles:
1. 8oLh are Lralnlng perlod for [obs requlrlng skllls LhaL can be
acqulred Lhrough acLual work experlence.
2. 8oLh may be pald wages 23 lower Lhan appllcable legal
mlnlmum wage.

Learners ApprenLlces
naLure of
Employers
buslness
Seml-skllled Plghly Lechnlcal
lndusLrles
AgreemenL Learnershlp
AgreemenL
ApprenLlceshlp
AggreemenL
uuraLlon noL greaLer Lhan
3 monLhs
no greaLer Lhan 6
monLhs
AgreemenL
needs approval
of
1LSuA 8ecommended by
a LrlparLlLe body
and approved by
1LSuA

4. CCNDI1ICNS CI LMLCMLN1

Art. 61. cooteots of oppteotlcesblp oqteemeots. - ApprenLlceshlp
agreemenLs, lncludlng Lhe wage raLes of apprenLlces, shall
conform Lo Lhe rules lssued by Lhe SecreLary of Labor and
LmploymenL. 1he perlod of apprenLlceshlp shall noL exceed slx
monLhs. ApprenLlceshlp agreemenLs provldlng for wage raLes
below Lhe legal mlnlmum wage, whlch ln no case shall sLarL
below 73 percenL of Lhe appllcable mlnlmum wage, may be
enLered lnLo only ln accordance wlLh apprenLlceshlp programs
duly approved by Lhe SecreLary of Labor and LmploymenL. 1he
ueparLmenL shall develop sLandard model programs of
apprenLlceshlp.

Art. 72. Appteotlces wltboot compeosotloo. - 1he SecreLary of
Labor and LmploymenL may auLhorlze Lhe hlrlng of apprenLlces
wlLhouL compensaLlon whose Lralnlng on Lhe [ob ls requlred by
Lhe school or Lralnlng program currlculum or as requlslLe for
graduaLlon or board examlnaLlon.

Art. 281. ltobotloooty employmeot. - robaLlonary employmenL
shall noL exceed slx (6) monLhs from Lhe daLe Lhe employee
sLarLed worklng, unless lL ls covered by an apprenLlceshlp
agreemenL sLlpulaLlng a longer perlod. 1he servlces of an
employee who has been engaged on a probaLlonary basls may

be LermlnaLed for a [usL cause or when he falls Lo quallfy as a
regular employee ln accordance wlLh reasonable sLandards
made known by Lhe employer Lo Lhe employee aL Lhe Llme of hls
engagemenL. An employee who ls allowed Lo work afLer a
probaLlonary perlod shall be consldered a regular employee

ArL. 7S. leotoetsblp oqteemeot. - Any employer deslrlng Lo
employ learners shall enLer lnLo a learnershlp agreemenL wlLh
Lhem, whlch agreemenL shall lnclude:
(a) 1he names and addresses of Lhe learners,
(b) 1he duraLlon of Lhe learnershlp perlod, whlch shall noL
exceed Lhree (3) monLhs,
(c) 1he wages or salary raLes of Lhe learners whlch shall begln aL
noL less Lhan sevenLy-flve percenL (73) of Lhe appllcable
mlnlmum wage, and
(d) A commlLmenL Lo employ Lhe learners lf Lhey so deslre, as
regular employees upon compleLlon of Lhe learnershlp.

All learners who have been allowed or suffered Lo work durlng
Lhe flrsL Lwo (2) monLhs shall be deemed regular employees lf
Lralnlng ls LermlnaLed by Lhe employer before Lhe end of Lhe
sLlpulaLed perlod Lhrough no faulL of Lhe learners. 1he
learnershlp agreemenL shall be sub[ecL Lo lnspecLlon by Lhe
represenLaLlve.

Art. 76. leotoets lo plecewotk. - Learners employed ln plece or
lncenLlve-raLe [obs durlng Lhe Lralnlng perlod shall be pald ln full
for Lhe work done.

S. LNICkCLMLN1
Art. 6S. lovestlqotloo of vlolotloo of oppteotlcesblp oqteemeot. -
upon complalnL of any lnLeresLed person or upon lLs own
lnlLlaLlve, Lhe approprlaLe agency of Lhe ueparLmenL of Labor
and LmploymenL or lLs auLhorlzed represenLaLlve shall
lnvesLlgaLe any vlolaLlon of an apprenLlceshlp agreemenL
pursuanL Lo such rules and regulaLlons as may be prescrlbed by
Lhe SecreLary of Labor and LmploymenL.

ArL. 66. Appeol to tbe 5ectetoty of lobot ooJ mploymeot. - 1he
declslon of Lhe auLhorlzed agency of Lhe ueparLmenL of Labor
and LmploymenL may be appealed by any aggrleved person Lo
Lhe SecreLary of Labor and LmploymenL wlLhln flve (3) days from
recelpL of Lhe declslon. 1he declslon of Lhe SecreLary of Labor
and LmploymenL shall be flnal and execuLor.

Art. 67. xboostloo of oJmlolsttotlve temeJles. - no person shall
lnsLlLuLe any acLlon for Lhe enforcemenL of any apprenLlceshlp
agreemenL or damages for breach of any such agreemenL, unless
he has exhausLed all avallable admlnlsLraLlve remedles.

C. LkSCNS WI1n DISA8ILI1

1. DLIINI1ICN

kA 7277, Sec 4(a). ulsabled persons are Lhose sufferlng from
resLrlcLlon or dlfferenL ablllLles, as a resulL of a menLal, physlcal
or sensory lmpalrmenL, Lo perform an acLlvlLy ln Lhe manner or
wlLhln Lhe range consldered normal for a human belng

kA 7277, Sec 4(b) lmpalrmenL ls any loss, dlmlnuLlon or
aberraLlon of psychologlcal, physlologlcal, or anaLomlcal
sLrucLure or funcLlon

kA 7277, Sec 4(c) ulsablllLy shall mean (1) a physlcal or menLal
lmpalrmenL LhaL subsLanLlally llmlLs one or more psychologlcal,
physlologlcal or anaLomlcal funcLlon of an lndlvldual or acLlvlLles
of such lndlvldual, (2) a record of such an lmpalrmenL, (3) belng
regarded as havlng such an lmpalrmenL

kA 7277, Sec 4(d). Pandlcap refers Lo a dlsadvanLage for a glven
lndlvldual, resulLlng from an lmpalrmenL or a dlsablllLy, LhaL
llmlLs or prevenLs Lhe funcLlon or acLlvlLy, LhaL ls consldered
normal glven Lhe age and sex of Lhe lndlvldual.

2. CLIC DLCLAkA1ICN

kA 7277, Sec . 2. ueclaraLlon of ollcy 1he granL of Lhe rlghLs
and prlvlleges for dlsabled persons shall be gulded by Lhe
followlng prlnclples:
a. ulsabled persons are parL of hlllpplne socleLy, Lhus Lhe
SLaLe shall glve full supporL Lo Lhe lmprovemenL of Lhe
LoLal well-belng of dlsabled persons and Lhelr lnLegraLlon
lnLo Lhe malnsLream of socleLy. 1oward Lhls end, Lhe
SLaLe shall adopL pollcles ensurlng Lhe rehablllLaLlon, self-
developmenL and self-rellance of dlsabled persons. lL
shall develop Lhelr skllls and poLenLlals Lo enable Lhem Lo
compeLe favorably for avallable opporLunlLles.
b. ulsabled persons have Lhe same rlghLs as oLher people Lo
Lake Lhelr proper place ln socleLy. 1hey should be able Lo
llve freely and as lndependenLly as posslble. 1hls musL be
Lhe concern of everyone Lhe famlly, communlLy and all
governmenL and nongovernmenL organlzaLlons. ulsabled
persons' rlghLs musL never be percelved as welfare
servlces by Lhe CovernmenL.
c. 1he rehablllLaLlon of Lhe dlsabled persons shall be Lhe
concern of Lhe CovernmenL ln order Lo fosLer Lhelr
capaclLy Lo aLLaln a more meanlngful, producLlve and
saLlsfylng llfe. 1o reach ouL Lo a greaLer number of
dlsabled persons, Lhe rehablllLaLlon servlces and beneflLs
shall be expanded beyond Lhe LradlLlonal urban-based

cenLers Lo communlLy based programs LhaL wlll ensure
full parLlclpaLlon of dlfferenL secLors as supporLed by
naLlonal and local governmenL agencles.
d. 1he SLaLe also recognlzes Lhe role of Lhe prlvaLe secLor ln
promoLlng Lhe welfare of dlsabled persons and shall
encourage parLnershlp ln programs LhaL address Lhelr
needs and concerns.

e. 1o faclllLaLe lnLegraLlon of dlsabled persons lnLo Lhe
malnsLream of socleLy, Lhe SLaLe shall advocaLe for and
encourage respecL for dlsabled persons. 1he SLaLe shall
exerL all efforLs Lo remove all soclal, culLural, economlc,
envlronmenLal and aLLlLudlnal barrlers LhaL are
pre[udlclal Lo dlsabled persons.

3. CCVLkAGL

kA 7277, Sec 3. Coverage. 1hls AcL shall cover all dlsabled
persons and, Lo Lhe exLenL hereln provlded, deparLmenLs, offlces
and agencles of Lhe naLlonal CovernmenL or nongovernmenL
organlzaLlons lnvolved ln Lhe aLLalnmenL of Lhe ob[ecLlves of Lhls
AcL.

4. LMLCMLN1 kIGn1S AND
kIVILLGLS

LC, 81. llqlblllty fot oppteotlcesblp. - Sub[ecL Lo Lhe approprlaLe
provlslons of Lhls Code, handlcapped workers may be hlred as
apprenLlces or learners lf Lhelr handlcap ls noL such as Lo
effecLlvely lmpede Lhe performance of [ob operaLlons ln Lhe
parLlcular occupaLlons for whlch Lhey are hlred.

kA 7277, Sec 4(|). ShelLered LmploymenL refers Lo Lhe provlslon
of producLlve work for dlsabled persons Lhrough workshops
provldlng speclal faclllLles, lncome-produclng pro[ecLs or
homework schemes wlLh a vlew Lo glvlng Lhem Lhe opporLunlLy
Lo earn a llvlng Lhus enabllng Lhem Lo acqulre a worklng capaclLy
requlred ln open lndusLry.

kA 7277, Sec S. Lqual CpporLunlLy for LmploymenL. no
dlsable person shall be denled access Lo opporLunlLles for
sulLable employmenL. A quallfled dlsabled employee shall be
sub[ecL Lo Lhe same Lerms and condlLlons of employmenL and
Lhe same compensaLlon, prlvlleges, beneflLs, frlnge beneflLs,
lncenLlves or allowances as a quallfled able bodled person. llve
percenL (3) of all casual emergency and conLracLual poslLlons
ln Lhe ueparLmenLs of Soclal Welfare and uevelopmenL, PealLh,
LducaLlon, CulLure and SporLs, and oLher governmenL agencles,
offlces or corporaLlons engaged ln soclal developmenL shall be
reserved for dlsabled persons
kA 7277, Sec 6. ShelLered LmploymenL lf sulLable
employmenL for dlsabled persons cannoL be found Lhrough open
employmenL as provlded ln Lhe lmmedlaLely precedlng SecLlon,
Lhe SLaLe shall endeavor Lo provlde lL by means of shelLered
employmenL. ln Lhe placemenL of dlsabled persons ln shelLered
employmenL, lL shall accord due regard Lo Lhe lndlvldual
quallLles, vocaLlonal goals and lncllnaLlons Lo ensure a good
worklng aLmosphere and efflclenL producLlon.

kA 7277, Sec 7. ApprenLlceshlp. Sub[ecL Lo Lhe provlslons of
Lhe Labor Code as amended, dlsabled persons shall be ellglble as
apprenLlces or learners: rovlded, 1haL Lhelr handlcap ls noL as
much as Lo effecLlvely lmpede Lhe performance of [ob
operaLlons ln Lhe parLlcular occupaLlon for whlch Lhey are hlred,
rovlded, furLher, 1haL afLer Lhe lapse of Lhe perlod of
apprenLlceshlp, lf found saLlsfacLory ln Lhe [ob performance,
Lhey shall be ellglble for employmenL.

8LkNAkDC VS NLkC & IL81C (1999)

l: MarlLes and oLhers were deaf-muLes hlred by lar LasL 8ank as
money sorLers and counLers. 1hey were under employmenL
conLracLs LhaL were renewed every 6 monLhs, and unless
renewed, would auLomaLlcally explre, as sLlpulaLed. 1hey are
now clalmlng LhaL Lhey should be consldered regular employees
under ArL 280 of Lhe Labor Code because Lhelr Lasks are
necessary and deslrable Lo Lhe buslness of Lhe bank.

P: 1hose who have worked for more Lhan 6 monLhs and Lhose
whose conLracLs have been renewed are deemed regular
employees. 1he Magna CarLa for ulsabled ersons mandaLes
LhaL a poollfleJ dlsabled employee should be glven Lhe same
Lerms and condlLlons of employmenL as a poollfleJ able-bodled
person. Slnce Lhe Magna CarLa accords Lhem Lhe rlghLs of
quallfled able-bodled persons, Lhey are Lhus covered by ArLlcle
280 of Lhe Labor Code.

S. DISCkIMINA1ICN IN LMLCMLN1

kA 7277, Sec 32. ulscrlmlnaLlon on LmploymenL. no enLlLy,
wheLher publlc or prlvaLe, shall dlscrlmlnaLe agalnsL a quallfled
dlsabled person by reason of dlsablllLy ln regard Lo [ob
appllcaLlon procedures, Lhe hlrlng, promoLlon, or dlscharge of
employees, employee compensaLlon, [ob Lralnlng, and oLher
Lerms, condlLlons, and prlvlleges of employmenL. 1he followlng
consLlLuLe acLs of dlscrlmlnaLlon:

(a) LlmlLlng, segregaLlng or classlfylng a dlsabled [ob appllcanL ln
such a manner LhaL adversely affecLs hls work opporLunlLles,


(b) uslng quallflcaLlon sLandards, employmenL LesLs or oLher
selecLlon crlLerla LhaL screen ouL or Lend Lo screen ouL a dlsabled
person unless such sLandards, LesLs or oLher selecLlon crlLerla
are shown Lo be [ob-relaLed for Lhe poslLlon ln quesLlon and are
conslsLenL wlLh buslness necesslLy,

(c) uLlllzlng sLandards, crlLerla, or meLhods of admlnlsLraLlon
LhaL:

(1) have Lhe effecL of dlscrlmlnaLlon on Lhe basls of dlsablllLy, or
(2) perpeLuaLe Lhe dlscrlmlnaLlon of oLhers who are sub[ecL Lo
common admlnlsLraLlve conLrol.

(d) rovldlng less compensaLlon, such as salary, wage or oLher
forms of remuneraLlon and frlnge beneflLs, Lo a quallfled
dlsabled employee, by reason of hls dlsablllLy, Lhan Lhe amounL
Lo whlch a non-dlsabled person performlng Lhe same work ls
enLlLled,

(e) lavorlng a non-dlsabled employee over a quallfled dlsabled
employee wlLh respecL Lo promoLlon, Lralnlng opporLunlLles,
sLudy and scholarshlp granLs, solely on accounL of Lhe laLLer's
dlsablllLy,

(f) 8e-asslgnlng or Lransferrlng a dlsabled employee Lo a [ob or
poslLlon he cannoL perform by reason of hls dlsablllLy,

(g) ulsmlsslng or LermlnaLlng Lhe servlces of a dlsabled employee
by reason of hls dlsablllLy unless Lhe employer can prove LhaL he
lmpalrs Lhe saLlsfacLory performance of Lhe work lnvolved Lo Lhe
pre[udlce of Lhe buslness enLlLy: rovlded, however, 1haL Lhe
employer flrsL soughL Lo provlde reasonable accommodaLlons
for dlsabled persons,

(h) lalllng Lo selecL or admlnlsLer ln Lhe mosL effecLlve manner
employmenL LesLs whlch accuraLely reflecL Lhe skllls, apLlLude or
oLher facLor of Lhe dlsabled appllcanL or employee LhaL such
LesLs purporLs Lo measure, raLher Lhan Lhe lmpalred sensory,
manual or speaklng skllls of such appllcanL or employee, lf any,
and

(l) Lxcludlng dlsabled persons from membershlp ln labor unlons
or slmllar organlzaLlons

kA 7277, Sec 33. LmploymenL LnLrance LxamlnaLlon. upon an
offer of employmenL, a dlsabled appllcanL may be sub[ecLed Lo
medlcal examlnaLlon, on Lhe followlng occaslons:

(a) all enLerlng employees are sub[ecLed Lo such an examlnaLlon
regardless of dlsablllLy,

(b) lnformaLlon obLalned durlng Lhe medlcal condlLlon or hlsLory
of Lhe appllcanL ls collecLed and malnLalned on separaLe forms
and ln separaLe medlcal flles and ls LreaLed as a confldenLlal
medlcal record, rovlded, however, 1haL:
(1) supervlsors and managers may be lnformed regardlng
necessary resLrlcLlons on Lhe work or duLles of Lhe employees
and necessary accommodaLlons,

(2) flrsL ald and safeLy personnel may be lnformed, when
approprlaLe, lf Lhe dlsablllLy may requlre emergency LreaLmenL,

(3) governmenL offlclals lnvesLlgaLlng compllance wlLh Lhls AcL
shall be provlded relevanL lnformaLlon on requesL, and

(4) Lhe resulLs of such examlnaLlon are used only ln accordance
wlLh Lhls AcL

6. LNICkCLMLN1

kA 7277, Sec 44. LnforcemenL by Lhe SecreLary of !usLlce.
(a) uenlal of 8lghL
(1) uuLy Lo lnvesLlgaLe Lhe SecreLary of !usLlce shall
lnvesLlgaLe alleged vlolaLlons of Lhls AcL, and shall underLake
perlodlc revlews of compllance of covered enLlLles under Lhls
AcL.

(b) oLenLlal vlolaLlons lf Lhe SecreLary of !usLlce has
reasonable cause Lo belleve LhaL
(1) any person or group of persons ls engaged ln a paLLern or
pracLlce of dlscrlmlnaLlon under Lhls AcL, or
(2) any person or group of persons has been dlscrlmlnaLed
agalnsL under Lhls AcL and such dlscrlmlnaLlon ralses an lssue of
general publlc lmporLance, Lhe SecreLary of !usLlce may
commence a legal acLlon ln any approprlaLe courL.

kA 7277, Sec 4S. AuLhorlLy of CourL. 1he courL may granL any
equlLable rellef LhaL such courL conslders Lo be approprlaLe,
lncludlng, Lo Lhe exLenL requlred by Lhls AcL: (a) granLlng
Lemporary, prellmlnary or permanenL rellef, (b) provldlng an
auxlllary ald or servlce, modlflcaLlon of pollcy, pracLlce or
procedure, or alLernaLlve meLhod, and (c) maklng faclllLles
readlly accesslble Lo and usable by lndlvlduals wlLh dlsablllLles.

kA 7277, Sec 46. enal Clause. (a) Any person who vlolaLes
any provlslon of Lhls AcL shall suffer Lhe followlng penalLles:

(1) for Lhe flrsL vlolaLlon, a flne of noL less Lhan llfLy Lhousand
pesos (30,000.00) buL noL exceedlng Cne hundred Lhousand
pesos (100,000.00) or lmprlsonmenL of noL less Lhan slx (6)
monLhs buL noL more Lhan Lwo (2) years, or boLh aL Lhe
dlscreLlon of Lhe courL, and


(2) for any subsequenL vlolaLlon, a flne of noL less Lhan Cne
hundred Lhousand pesos (100,000.00) buL noL exceedlng 1wo
hundred Lhousand pesos (200,000.00) or lmprlsonmenL for noL
less Lhan Lwo (2) years buL noL more Lhan slx (6) years, or boLh aL
Lhe dlscreLlon of Lhe courL

(b) Any person who abuses Lhe prlvlleges granLed hereln shall be
punlshed wlLh lmprlsonmenL of noL less Lhan slx (6) monLhs or a
flne of noL less Lhan llve Lhousand pesos (3,000.00), buL noL
more Lhan llfLy Lhousand pesos (30,000.00), or boLh, aL Lhe
dlscreLlon of Lhe courL.

(c) lf Lhe vlolaLor ls a corporaLlon, organlzaLlon or any slmllar
enLlLy, Lhe offlclals Lhereof dlrecLly lnvolved shall be llable
Lherefor.

(d) lf Lhe vlolaLor ls an allen or a forelgner, he shall be deporLed
lmmedlaLely afLer servlce of senLence wlLhouL furLher
deporLaLlon proceedlngs.


4. CCNDI1ICNS CI
LMLCMLN1

A. nCUkS CI WCkk
1. kLGULA1ICN]kA1ICNALL
MANILA 1LkMINAL CC. INCVS CIk (19S2)
l: Manlla 1ermlnal Co. lnc. hlred some 30 waLchmen on 12-hour
shlfLs who are now clalmlng overLlme pay.
P: 8espondenLs are enLlLled Lo overLlme compensaLlon. 1he
LlghL-Pour Law provldes LhaL any agreemenL or conLracL
beLween Lhe employer and Lhe laborer or employee conLrary Lo
Lhe provlslons of Lhls AcL shall be null vold. 1he publlc ls
lnLeresLed ln Lhe sLrlcL enforcemenL of Lhe LlghL-Pour Labor
Law. 1hls was deslgned noL only Lo safeguard Lhe healLh and
welfare of Lhe laborer or employee, buL ln a way Lo mlnlmlze
unemploymenL by forclng employers, ln cases where more Lhan
8-hour operaLlon ls necessary, Lo uLlllze dlfferenL shlfLs of
laborers or employees worklng only for elghL hours each.
2. CCVLkAGL

LC, 82. covetoqe. - 1he provlslons of Lhls 1lLle shall apply Lo
employees ln all esLabllshmenLs and underLaklngs wheLher for
proflL or noL, buL noL Lo governmenL employees, managerlal
employees, fleld personnel, members of Lhe famlly of Lhe
employer who are dependenL on hlm for supporL, domesLlc
helpers, persons ln Lhe personal servlce of anoLher, and workers
who are pald by resulLs as deLermlned by Lhe SecreLary of Labor
ln approprlaLe regulaLlons.
As used hereln, "moooqetlol employees" refer Lo Lhose whose
prlmary duLy conslsLs of Lhe managemenL of Lhe esLabllshmenL
ln whlch Lhey are employed or of a deparLmenL or subdlvlslon
Lhereof, and Lo oLher offlcers or members of Lhe managerlal
sLaff. "llelJ petsoooel" shall refer Lo non-agrlculLural employees
who regularly perform Lhelr duLles away from Lhe prlnclpal place
of buslness or branch offlce of Lhe employer and whose acLual
hours of work ln Lhe fleld cannoL be deLermlned wlLh reasonable
cerLalnLy.

LC, 282. Covetomeot employees. - 1he Lerms and condlLlons of
Ck, 8ook III, ku|e I Sec. 1. Ceneral sLaLemenL on coverage.
1he provlslons of Lhls 8ule shall apply Lo all employees ln all
esLabllshmenLs and underLaklngs, wheLher operaLed for proflL or
noL, excepL Lo Lhose speclflcally exempLed under SecLlon 2
hereof.

Ck, 8ook III, ku|e I Sec. 2. LxempLlon. 1he provlslons of Lhls
8ule shall noL apply Lo Lhe followlng persons lf Lhey quallfy for
exempLlon under Lhe condlLlons seL forLh hereln:

(a) CovernmenL employees wheLher employed by Lhe naLlonal
CovernmenL or any of lLs pollLlcal subdlvlslon, lncludlng Lhose
employed ln governmenL-owned and/or conLrolled
corporaLlons,

(b) Managerlal employees, lf Lhey meeL all of Lhe followlng
condlLlons:
(1) 1helr prlmary duLy conslsLs of Lhe managemenL of Lhe
esLabllshmenL ln whlch Lhey are employed or of a deparLmenL or
sub-dlvlslon Lhereof.
(2) 1hey cusLomarlly and regularly dlrecL Lhe work of Lwo or
more employees Lhereln.
(3) 1hey have Lhe auLhorlLy Lo hlre or flre employees of lower
rank, or Lhelr suggesLlons and recommendaLlons as Lo hlrlng and
flrlng and as Lo Lhe promoLlon or any oLher change of sLaLus of
oLher employees, are glven parLlcular welghL.

(c) Cfflcers or members of a managerlal sLaff lf Lhey perform Lhe
followlng duLles and responslblllLles:
(1) 1he prlmary duLy conslsLs of Lhe performance of work
dlrecLly relaLed Lo managemenL pollcles of Lhelr employer,
(2) CusLomarlly and regularly exerclse dlscreLlon and
lndependenL [udgmenL, and
(3) (l) 8egularly and dlrecLly asslsL a proprleLor or a managerlal
employee whose prlmary duLy conslsLs of Lhe managemenL of
Lhe esLabllshmenL ln whlch he ls employed or subdlvlslon
Lhereof, or (ll) execuLe under general supervlslon work along
speclallzed or Lechnlcal llnes requlrlng speclal Lralnlng,
experlence, or knowledge, or (lll) execuLe, under general
supervlslon, speclal asslgnmenLs and Lasks, and
(4) Who do noL devoLe more Lhan 20 percenL of Lhelr hours
worked ln a work week Lo acLlvlLles whlch are noL dlrecLly and
closely relaLed Lo Lhe performance of Lhe work descrlbed ln
paragraphs (1), (2) and (3) above.

(d) uomesLlc servanLs and persons ln Lhe personal servlce of
anoLher lf Lhey perform such servlces ln Lhe employer's home
whlch are usually necessary or deslrable for Lhe malnLenance
and en[oymenL Lhereof, or mlnlsLer Lo Lhe personal comforL,
convenlence, or safeLy of Lhe employer as well as Lhe members
of hls employer's household.


(e) Workers who are pald by resulLs, lncludlng Lhose who are
pald on plece-work, "Lakay," "paklao" or Lask basls, and oLher
non-Llme work lf Lhelr ouLpuL raLes are ln accordance wlLh Lhe
sLandards prescrlbed under SecLlon 8, 8ule vll, 8ook 1hree of
Lhese regulaLlons, or where such raLes have been flxed by Lhe
SecreLary of Labor and LmploymenL ln accordance wlLh Lhe
aforesald SecLlon.

(f) non-agrlculLural fleld personnel lf Lhey regularly perform
Lhelr duLles away from Lhe prlnclpal or branch offlce or place of
buslness of Lhe employer and whose acLual hours of work ln Lhe
fleld cannoL be deLermlned wlLh reasonable cerLalnLy.

LkLM1ICNS

A. GCVLkNMLN1 LMLCLLS

ln approprlaLe regulaLlons.

As used hereln, "moooqetlol employees" refer Lo Lhose whose
prlmary duLy conslsLs of Lhe managemenL of Lhe esLabllshmenL
ln whlch Lhey are employed or of a deparLmenL or subdlvlslon
Lhereof, and Lo oLher offlcers or members of Lhe managerlal
sLaff. "llelJ petsoooel" shall refer Lo non-agrlculLural employees
who regularly perform Lhelr duLles away from Lhe prlnclpal place
of buslness or branch offlce of Lhe employer and whose acLual
hours of work ln Lhe fleld cannoL be deLermlned wlLh reasonable
cerLalnLy.

LC, 276. Covetomeot employees. - 1he Lerms and condlLlons of

Ck, 8ook III, ku|e I Sec. 2(a) 1he provlslons of Lhls 8ule shall noL
apply Lo Lhe followlng persons lf Lhey quallfy for exempLlon
under Lhe condlLlons seL forLh hereln: CovernmenL employees
wheLher employed by Lhe naLlonal CovernmenL or any of lLs
pollLlcal subdlvlslon, lncludlng Lhose employed ln governmenL-
owned and/or conLrolled corporaLlons.
8. MANAGLkIAL LMLCLLS

LC, 82. As used herein, "moooqetlol employees" refer Lo Lhose
whose prlmary duLy conslsLs of Lhe managemenL of Lhe
subdlvlslon Lhereof, and Lo oLher offlcers or members of Lhe
managerial staff.

LC, 212 (m). "Moooqetlol employee" ls one who ls vesLed wlLh
Lhe powers or prerogaLlves Lo lay down and execuLe
managemenL pollcles and/or Lo hlre, Lransfer, suspend, lay-off,
recall, dlscharge, asslgn or dlsclpllne employees. Supervlsory
employees are Lhose who, ln Lhe lnLeresL of Lhe employer,
effecLlvely recommend such managerlal acLlons lf Lhe exerclse of
such auLhorlLy ls noL merely rouLlnary or clerlcal ln naLure buL
requlres Lhe use of lndependenL [udgmenL. All employees noL
falllng wlLhln any of Lhe above deflnlLlons are consldered rank-
and-flle employees for purposes of Lhls 8ook

Ck, 8ook III, ku|e I Sec. 2(b). Managerlal employees, lf Lhey
meeL all of Lhe followlng condlLlons:

(1) 1helr prlmary duLy conslsLs of Lhe managemenL of Lhe
sub-dlvlslon Lhereof.
(2) 1hey cusLomarlly and regularly dlrecL Lhe work of Lwo or
more employees Lhereln.
(3) 1hey have Lhe auLhorlLy Lo hlre or flre employees of lower
rank, or Lhelr suggesLlons and recommendaLlons as Lo hlrlng and
flrlng and as Lo Lhe promoLlon or any oLher change of sLaLus of
oLher employees, are glven parLlcular welghL.

Ck, 8ook III, ku|e I Sec. 2(c). Cfflcers or members of a
managerlal sLaff lf Lhey perform Lhe followlng duLles and
responslblllLles:

(1) 1he prlmary duLy conslsLs of Lhe performance of work
dlrecLly relaLed Lo managemenL pollcles of Lhelr employer,
(2) CusLomarlly and regularly exerclse dlscreLlon and
lndependenL [udgmenL, and
(3) (l) 8egularly and dlrecLly asslsL a proprleLor or a managerlal
employee whose prlmary duLy conslsLs of Lhe managemenL of
Lhe esLabllshmenL ln whlch he ls employed or subdlvlslon
Lhereof, or (ll) execuLe under general supervlslon work along
speclallzed or Lechnlcal llnes requlrlng speclal Lralnlng,
experlence, or knowledge, or (lll) execuLe, under general
supervlslon, speclal asslgnmenLs and Lasks, and
(4) Who do noL devoLe more Lhan 20 percenL of Lhelr hours
worked ln a work week Lo acLlvlLles whlch are noL dlrecLly and
closely relaLed Lo Lhe performance of Lhe work descrlbed ln
paragraphs (1), (2) and (3) above.


IN1LkNA1ICNAL nAkMACLU1ICALS INC. VS NLkC
(1998)
l: vlrglnla was hlred as Lhe Medlcal uocLor of lnLernaLlonal
Pharmaceuticals Incs Research and Development Dept.
Powever, she was LermlnaLed because of her parLlclpaLlon ln Lhe
demand for full flnanclal dlsclosure of Lhe company and whlch
prompLed her Lo flle a case for lllegal dlsmlssal. ll ls clalmlng
LhaL she was only hlred as a consulLanL for a pro[ecL.
P: 1he prlmary sLandard of deLermlnlng a regular employmenL ls
Lhe reasonable connecLlon beLween Lhe parLlcular acLlvlLy
performed by Lhe employee ln relaLlon Lo Lhe usual buslness or
Lrade of Lhe employer whlch ls appllcable ln Lhe case aL bar. 1he
facL LhaL she was noL requlred Lo reporL aL a flxed hour or Lo
keep flxed hours of work does noL deLracL from her sLaLus as a
regular employee. vlrglnla was a managerlal employeeand
Lherefore noL covered by Lhe Labor Code provlslons on hours of
work.
C. IILLD LkSCNNLL

LC, 82. "llelJ petsoooel" shall refer Lo non-agrlculLural
employees who regularly perform Lhelr duLles away from Lhe
prlnclpal place of buslness or branch offlce of Lhe employer and
whose acLual hours of work ln Lhe fleld cannoL be deLermlned
wlLh reasonable cerLalnLy.

Ck, 8ook III, ku|e I Sec. 2(f). non-agrlculLural fleld personnel lf
Lhey regularly perform Lhelr duLles away from Lhe prlnclpal or
branch offlce or place of buslness of Lhe employer and whose
acLual hours of work ln Lhe fleld cannoL be deLermlned wlLh
reasonable cerLalnLy.

MLkCIDAk IISnING CCk VS NLkC (1998)

l: lermln employed as a bodegero by Mercldar. Pe had been
slck and was allowed Lo go on leave wlLhouL pay buL was refused
Lo be admlLLed back Lo work so he flled for lllegal dlsmlssal and
non-paymenL of flve days servlce lncenLlve leave. Mercldar ls
clalmlng LhaL lL cannoL be held llable for servlce lncenLlve leave
pay by fishermen in its employ as the latter supposedly are field
personnel and thus not entitled to such pay under the Labor
Code.

H: Art 82 of the Labor Code excludes field personnel from
appllcaLlon of Lhe Labor SLandards deflnlng Lhem as non-
agrlculLural employees who regularly perform Lhelr duLles away
from Lhe prlnclpal place of buslness or branch offlce of Lhe
employer and whose acLual hours of work ln Lhe fleld cannoL be
determined with reasonable certainty. Fermin cannot be
consldered as such because flshermen, durlng Lhe enLlre course
of Lhelr flshlng voyage, have no cholce buL Lo remaln on board
lLs vessel. AlLhough Lhey perform non-agrlculLural work away
from petitioners business offices, the fact remains that
LhroughouL Lhe duraLlon of Lhelr work Lhey are under Lhe
effecLlve conLrol and supervlslon of Mercldar Lhrough Lhe
vessels patron or master

IAk LAS1 AGkICUL1UkAL SUL, INC. VS LL8A1IUL
(2007)

l: lar LasL hlred !lmmy as a Lruck drlver who complalned of
nonpaymenL of overLlme work. nL8C held LhaL he was a fleld
personnel and Lherefore noL enLlLled Lo overLlme and servlce
lncenLlve leave pay.

P: Pe ls noL a fleld personnel as conLemplaLed ln ArL. 82 of Lhe
Labor Code because Far Easts company drivers are directed to
dellver goods aL a speclfled Llme and place, noL glven Lhe
dlscreLlon Lo sollclL, selecL and conLacL prospecLlve cllenLs, and
lar LasL lssued a dlrecLlve LhaL company drlvers should sLay aL
the clients premises during truck ban hours. They are also under
conLrol and supervlslon of managemenL offlcers. Pe musL be
consldered a regular employee whose Lasks are usually
necessary and deslrable Lo Lhe usual Lrade and buslness of Lhe
company. 1herefore he ls enLlLled Lo Lhe beneflLs.

D. DLLNDLN1 IAMIL MLM8LkS
L. DCMLS1IC nLLLkS

LC, 141. covetoqe. - 1hls ChapLer shall apply Lo all persons
renderlng servlces ln households for compensaLlon. Domestic
or household service shall mean service in the employers home
whlch ls usually necessary or deslrable for Lhe malnLenance and
en[oymenL Lhereof and lncludes mlnlsLerlng Lo Lhe personal
comfort and convenience of the members of the employers
household, lncludlng servlces of famlly drlvers

LC, 14S. Asslqomeot to Noo-noosebolJ wotk. no househelper
shall be asslgned Lo work ln a commerclal, lndusLrlal or
agrlculLural enLerprlse aL a wage or salary raLe lower Lhan LhaL
provlded for agrlculLural or non-agrlculLural workers as
prescrlbed hereln.

Ck, 8ook III, ku|e I Sec. 2(d). uomesLlc servanLs and persons ln
Lhe personal servlce of anoLher lf Lhey perform such servlces ln
Lhe employer's home whlch are usually necessary or deslrable
for Lhe malnLenance and en[oymenL Lhereof, or mlnlsLer Lo Lhe
personal comforL, convenlence, or safeLy of Lhe employer as well
as Lhe members of hls employer's household.

I. LkSCNS IN 1nL LkSCNAL SLkVICL
CI ANC1nLk

Ck, 8ook III, ku|e I Sec. 2(d) uomesLlc servanLs and persons ln
Lhe personal servlce of anoLher lf Lhey perform such servlces ln
Lhe employer's home whlch are usually necessary or deslrable
for Lhe malnLenance and en[oymenL Lhereof, or mlnlsLer Lo Lhe
personal comforL, convenlence, or safeLy of Lhe employer as well
as Lhe members of hls employer's household.

G. ILCL-kA1L WCkkLkS

Ck, 8ook III, ku|e I Sec. 2(e). Workers who are pald by resulLs,
lncludlng Lhose who are pald on plece-work, "Lakay," "paklao" or
Lask basls, and oLher non-Llme work lf Lhelr ouLpuL raLes are ln
accordance wlLh Lhe sLandards prescrlbed under SecLlon 8, 8ule
vll, 8ook 1hree of Lhese regulaLlons, or where such raLes have
been flxed by Lhe SecreLary of Labor and LmploymenL ln
accordance wlLh Lhe aforesald SecLlon.

G.1. DLIINI1ICN

LA8Ck CCNGkLSS VS NLkC (1998)

l: 99 rank-and-flle employees of Lmplre lood roducLs flled a
complalnL for unfalr labor pracLlce, unlon busLlng Lhru
harassmenLs, vlolaLlon of MoA, damages, and underpaymenL of
wages. LA/nL8C held LhaL Lhe only llmlLaLlon for plece workers
were LhaL Lhey should recelve compensaLlon no less
Lhan Lhe mlnlmum wage for an 8 hour work and slnce Lhls
was saLlsfacLorlly complled wlLh, Lhey had no basls for clalmlng
underpaymenL of wages.

P: eLlLloners, alLhough plece-raLe workers, were regular
employees of prlvaLe respondenLs. llrsL, Lhelr [ob was necessary
or deslrable ln Lhe usual buslness of prlvaLe respondenLs,
second, peLlLloners worked for prlvaLe respondenLs LhroughouL
Lhe year, Lhelr employmenL noL havlng been dependenL on a
speclflc pro[ecL or season, and Lhlrd, Lhe lengLh of Llme LhaL
peLlLloners worked for prlvaLe respondenLs. 1hus, whlle
petitioners mode of compensation was on a per piece basis,
Lhe sLaLus and naLure of Lhelr employmenL was LhaL of regular
employees and Lhey were enLlLled Lo backwages and
relnsLaLemenL.

G.2. NA1UkL CI WCkk CI ILCL-kA1L
WCkkLkS

8LS1 WLAk GAkMLN1S VSADLLAIDA 8. DL LLMCS AND
CLCILLL M. CCU8ILLC (2012)
l: Cecllle and Adelalda were hlred by 8esL Wear CarmenLs as
sewers on a plece-raLe basls. 1hey clalm LhaL Lhey were
consLrucLlvely dlsmlssed by belng Lransferred Lo oLher areas of
operaLlon whlch Lhey clalm was because of Lhelr refusal Lo
render overLlme work. 8esL Wear CarmenLs denled Lhls and also
sald LhaL Lhe allegaLlon of respondenLs LhaL Lhey were
Lransferred because of Lhelr refusal Lo render overLlme work ls
unbellevable because respondenLs are plece-raLe workers hence
Lhey are noL pald by Lhe hour.

P: 8elng plece-raLe workers asslgned Lo lndlvldual sewlng
machines, respondents earnings depended on the quality and
quanLlLy of flnlshed producLs. 1haL Lhelr work ouLpuL mlghL have
been affecLed by Lhe change ln Lhelr speclflc work asslgnmenLs
does noL necessarlly lmply LhaL any resulLlng reducLlon ln pay ls
LanLamounL Lo consLrucLlve dlsmlssal. Workers under plece-raLe
employmenL have no flxed salarles and Lhelr compensaLlon ls
compuLed on Lhe basls of accompllshed Lasks. ueploymenL of
sewers ls a managemenL prerogaLlve, whlch absenL of bad falLh,
shouldnt be interfered with by the courts.

3. NCkMAL nCUkS CI WCkk

LC, 83. Notmol boots of wotk. - 1he normal hours of work of any
employee shall noL exceed elghL (8) hours a day.

PealLh personnel ln clLles and munlclpallLles wlLh a populaLlon of
aL leasL one mllllon (1,000,000) or ln hosplLals and cllnlcs wlLh a
bed capaclLy of aL leasL one hundred (100) shall hold regular
offlce hours for elghL (8) hours a day, for flve (3) days a week,
excluslve of Llme for meals, excepL where Lhe exlgencles of Lhe
servlce requlre LhaL such personnel work for slx (6) days or forLy-
elghL (48) hours, ln whlch case, Lhey shall be enLlLled Lo an
addlLlonal compensaLlon of aL leasL LhlrLy percenL (30) of Lhelr
regular wage for work on Lhe slxLh day. lor purposes of Lhls
ArLlcle, "beoltb petsoooel" shall lnclude resldenL physlclans,
nurses, nuLrlLlonlsLs, dleLlLlans, pharmaclsLs, soclal workers,
laboraLory Lechnlclans, paramedlcal Lechnlclans, psychologlsLs,
mldwlves, aLLendanLs and all oLher hosplLal or cllnlc personnel.

LLGLND nC1LL VSnLkNANI S. kLALUC (2012)

F: Joey worked as a pianist at the Legend Hotels Tanglaw
8esLauranL 3 Lo 6 Llmes a week from 7-10 pm. ManagemenL
Lhen noLlfled hlm LhaL as a cosL-cuLLlng measure hls servlce
would no longer be requlred. Legend denled Lhe exlsLence of an
employer-employee relaLlonshlp wlLh respondenL, lnslsLlng LhaL
Law 113 Labor SLandards Law | rof. uaway age S0 of 90

he had been only a LalenL engaged Lo provlde llve muslc Lhree
hours a day, 2 Llmes per week.

P: 1haL !oey worked for less Lhan elghL hours/day was of no
consequence and did not detract from the CAs finding on the
exlsLence of Lhe employer-employee relaLlonshlp. ln provldlng
LhaL Lhe " normal hours of work of any employee shall noL
exceed8 hours a day," ArLlcle 83 of Lhe Labor Code only seL a
maxlmum of number of hours as "normal hours of work" buL dld
noL prohlblL work of less Lhan elghL hours.

4. CCMLNSA8LL nCUkS CI WCkk

4.A. CN DU1

LC, 84(a). noots wotkeJ. - Pours worked shall lnclude all Llme
durlng whlch an employee ls requlred Lo be on duLy or Lo be aL a
prescrlbed workplace.

Ck, 8ook III, ku|e I Sec. 3(a). Pours worked. 1he followlng
shall be consldered as compensable hours worked: All Llme
durlng whlch an employee ls requlred Lo be on duLy or Lo be aL
Lhe employer's premlses or Lo be aL a prescrlbed work place

Ck, 8ook III, ku|e I Sec. 4(a). rlnclples ln deLermlnlng hours
worked. 1he followlng general prlnclples shall govern ln
deLermlnlng wheLher Lhe Llme spenL by an employee ls
consldered hours worked for purposes of Lhls 8ule: All hours are
hours worked whlch Lhe employee ls requlred Lo glve hls
employer, regardless of wheLher or noL such hours are spenL ln
producLlve labor or lnvolve physlcal or menLal exerLlon.

4.8. A1 WCkk

LC, 84(b). noots wotkeJ. - Pours worked shall lnclude all Llme
durlng whlch an employee ls suffered or permlLLed Lo work.

Ck, 8ook III, ku|e I Sec. 3(b). Pours worked. 1he followlng
shall be consldered as compensable hours worked: All Llme
durlng whlch an employee ls suffered or permlLLed Lo work.

S. SLCIIIC kULLS
S.A. kLS1 LkICD
S.A.1.CCIILL 8kLAk

LC, 84 ar 2. 8esL perlods of shorL duraLlon durlng worklng hours
shall be counLed as hours worked. Ck, 8ook III, ku|e I Sec. 7 ar.
2. 8esL perlods or coffee breaks runnlng from flve (3) Lo LwenLy
(20) mlnuLes shall be consldered as compensable worklng Llme
S.A.2. MCkL 1nAN 20 MIN.

Ck, 8ook III, ku|e I Sec. 4(b). An employee need noL leave Lhe
premlses of Lhe work place ln order LhaL hls resL perlod shall noL
be counLed, lL belng enough LhaL he sLops worklng, may resL
compleLely and may leave hls work place, Lo go elsewhere,
wheLher wlLhln or ouLslde Lhe premlses of hls work place.

S.8. MLAL LkICD
S.8.1. kLGULAk MLAL LkICD

LC, 8S. Meol petloJs. - Sub[ecL Lo such regulaLlons as Lhe
SecreLary of Labor may prescrlbe, lL shall be Lhe duLy of every
employer Lo glve hls employees noL less Lhan slxLy (60) mlnuLes
Llme-off for Lhelr regular meals.

Ck, 8ook III, ku|e I Sec. 7 par. 1. Lvery employer shall glve hls
employees, regardless of sex, noL less Lhan one (1) hour Llme-off
for regular meals, excepL ln Lhe followlng cases when a meal
perlod of noL less Lhan LwenLy (20) mlnuLes may be glven by Lhe
employer provlded LhaL such shorLer meal perlod ls credlLed as
compensable hours worked of Lhe employee:

(a) Where Lhe work ls non-manual work ln naLure or does noL
lnvolve sLrenuous physlcal exerLlon,
(b) Where Lhe esLabllshmenL regularly operaLes noL less Lhan
slxLeen (16) hours a day,
(c) ln case of acLual or lmpendlng emergencles or Lhere ls urgenL
work Lo be performed on machlnerles, equlpmenL or
lnsLallaLlons Lo avold serlous loss whlch Lhe employer would
oLherwlse suffer, and
(d) Where Lhe work ls necessary Lo prevenL serlous loss of
perlshable goods

nILIINL AIkLINLS VS NLkC (1999)
l: Pemlnlo was employed as a fllghL surgeon aL AL and was on
duLy from 4 pm Lo 12 am. Cne day, aL around 7 pm, he declded
Lo have hls dlnner aL home, whlch was only 3 mlnuLes away from
Lhe cllnlc. Pe Lhen goL an emergency call LhaL an employee
suffered a hearL aLLack and subsequenLly dled.

P: Lmployees are enLlLled Lo noL less Lhan 60 mlnuLes Llme-off
for Lhelr regular meals, as provlded by ArL 83 of Lhe Labor Code.
nowhere ln Lhe law may lL be lnferred LhaL employees musL Lake
Lhelr meals wlLhln Lhe company premlses. Lmployees are noL
prohlblLed from golng ouL of Lhe premlses as long as Lhey reLurn
to their posts on time. Herminios act, therefore, does not
consLlLuLe abandonmenL.

S.8.2. SnCk1Lk MLAL LkICD
(LLSS 1nAN AN nCUk 8U1 NC1
LLSS 1nAN 2 MINS.)
Sec. 7 par 1, sopto

S.C. WAI1ING 1IML

Ck, 8ook III, ku|e I Sec. S(a). WalLlng Llme. WalLlng Llme spenL
by an employee shall be consldered as worklng Llme lf walLlng ls
an lnLegral parL of hls work or Lhe employee ls requlred or
engaged by Lhe employer Lo walL.

AkICA VS NLkC (1989)
l: Workers flled a complalnL agalnsL SLanfllco for Lhelr assembly
Llme whlch Lhey clalm should be consldered walLlng Llme or
work Llme under 8ook lll, 8ule l, Sec .3 and ls Lherefore
compensable.
P: 1he assembly Llme long pracLlced and lnsLlLuLlonallzed by
muLual consenL of Lhe parLles under Lhelr C8A. lurLhermore, lL ls
a deeply- rooLed, rouLlnary pracLlce of Lhe employees, and Lhe
proceedlngs aLLendanL LhereLo are noL lnfecLed wlLh
complexlLles as Lo deprlve Lhe workers Lhe Llme Lo aLLend Lo
oLher personal pursulLs.
ulssenL: 1he workers are acLually placed under a number of
restrictions in this assembly time, and it has now actually
become, ln LruLh and facL, a "walLlng Llme" as conLemplaLed by
Lhe Labor Code, as compared Lo Lhe prevlous case where Lhere
was a lack of obllgaLorlness on Lhe parL of Lhe employees.
S.D. CN CALL
S.D.1.WCkkING WnILL CN CALL

Ck, 8ook III, ku|e I Sec. S (b) 1
st
sentence. An employee who ls
requlred Lo remaln on call ln Lhe employer's premlses or so close
LhereLo LhaL he cannoL use Lhe Llme effecLlvely and galnfully for
hls own purpose shall be consldered as worklng whlle on call.

S.D.2. NC1 WCkkING WnILL CN
CALL

Ck, 8ook III, ku|e I Sec. S (b) 2
nd
sentence An employee who ls
noL requlred Lo leave word aL hls home or wlLh company offlclals
where he may be reached ls noL worklng whlle on call.

S.L. INAC1IVL DUL 1C WCkk
IN1LkkU1ICNS

Ck, 8ook III, ku|e I Sec. 4(d). 1he Llme durlng whlch an
employee ls lnacLlve by reason of lnLerrupLlons ln hls work
beyond hls conLrol shall be consldered worklng Llme elLher lf Lhe
lmmlnence of Lhe resumpLlon of work requlres Lhe employee's
presence aL Lhe place of work or lf Lhe lnLerval ls Loo brlef Lo be
uLlllzed effecLlvely and galnfully ln Lhe employee's own lnLeresL.

UNIVLkSI1 CI ANGASINAN IACUL1 UNICN VS
UNIVLkSI1 CI ANGASINAN (1984)
l: Labor unlon of unlverslLy of angaslnan, composed of lLs
faculLy members, flled a complalnL agalnsL Lhe unlverslLy for
paymenL of LCCLA for Lhe semesLral break. unlverslLy clalms
that the break isnt an integral part of the school year and since
there werent any actual services belng rendered, Lhe prlnclple
of no work, no pay applies.
P: SemesLral breaks are ln Lhe naLure of work lnLerrupLlons
beyond the employees control and it cannot be used
"effecLlvely nor galnfully ln Lhe employee's lnLeresL". 1hus,
semestral break may also be considered hours worked,
enLlLllng employees Lo regular salarles and LCCLA, pursuanL Lo
Lhe Cmnlbus 8ules lmplemenLlng Lhe Labor Code Sec. 4 (d).

S.I. NLCLSSAk WCkk AI1Lk NCkMAL
WCkkING nCUkS

Ck, 8ook III, ku|e I Sec. 4(c). lf Lhe work performed was
necessary, or lL beneflLed Lhe employer, or Lhe employee could
noL abandon hls work aL Lhe end of hls normal worklng hours
because he had no replacemenL, all Llme spenL for such work
shall be consldered as hours worked, lf Lhe work was wlLh Lhe
knowledge of hls employer or lmmedlaLe supervlsor.

S.G. LLC1UkLS, MLL1INGS, 1kAININGS

Ck, 8ook III, ku|e I Sec. 6. LecLures, meeLlngs, Lralnlng
programs. ALLendance aL lecLures, meeLlngs, Lralnlng
programs, and oLher slmllar acLlvlLles shall noL be counLed as
worklng Llme lf all of Lhe followlng condlLlons are meL: (a)
ALLendance ls ouLslde of Lhe employee's regular worklng hours,
(b) ALLendance ls ln facL volunLary, and (c) 1he employee does
noL perform any producLlve work durlng such aLLendance.


S.n. 1kAVLL 1IML
kADA V NLkC (1992)
l: Pllarlo was employed as drlver by hllnor ConsulLanLs and
lanners, lnc. Pe flled a complalnL agalnsL Lhe company for
paymenL of overLlme pay as he clalms LhaL he was made Lo
render Lhree hours overLlme work form Monday Lo SaLurday for
a perlod of Lhree years.
P: Pllarlo ls enLlLled Lo overLlme compensaLlon. 1he facL LhaL he
plcks up employees of hllnor drops Lhem off aL Lhe same polnLs
on hls way back from Lhe fleld offlce golng home ls noL merely
lncldenLal Lo hls [ob as a drlver. Cn Lhe conLrary, sald
LransporLaLlon arrangemenL had been adopLed, noL so much for
Lhe convenlence of Lhe employees, buL prlmarlly for Lhe beneflL
of Lhe employer hllnor.
6. CVLk1IML WCkk]A

Genera| ru|e: employer cannoL compel employee Lo work
overLlme
Lxcept|on: ArL. 89 LC and 8ules 8ook 3, 8ule 3, sec. 6 (f)

6.A. CVLk1IML IN CkDINAk WCkkING
DA

LC, 87. Ovettlme wotk. - Work may be performed beyond elghL
(8) hours a day provlded LhaL Lhe employee ls pald for Lhe
overLlme work, an addlLlonal compensaLlon equlvalenL Lo hls
regular wage plus aL leasL LwenLy-flve percenL (23) Lhereof.
Work performed beyond elghL hours on a hollday or resL day
shall be pald an addlLlonal compensaLlon equlvalenL Lo Lhe raLe
of Lhe flrsL elghL hours on a hollday or resL day plus aL leasL LhlrLy
percenL (30) Lhereof.

Ck, 8ook III, ku|e I Sec. 8. CverLlme pay. Any employee
covered by Lhls 8ule who ls permlLLed or requlred Lo work
beyond elghL (8) hours on ordlnary worklng days shall be pald an
addlLlonal compensaLlon for Lhe overLlme work ln Lhe amounL
equlvalenL Lo hls regular wage plus aL leasL LwenLy-flve percenL
(23) Lhereof.

b. Lmergency or compulsory overLlme work

LC, 89. metqeocy ovettlme wotk. - Any employee may be
requlred by Lhe employer Lo perform overLlme work ln any of
Lhe followlng cases:
(a) When Lhe counLry ls aL war or when any oLher naLlonal or
local emergency has been declared by Lhe naLlonal Assembly or
Lhe Chlef LxecuLlve,
(b) When lL ls necessary Lo prevenL loss of llfe or properLy or ln
case of lmmlnenL danger Lo publlc safeLy due Lo an acLual or
lmpendlng emergency ln Lhe locallLy caused by serlous
accldenLs, flre, flood, Lyphoon, earLhquake, epldemlc, or oLher
dlsasLer or calamlLy,
(c) When Lhere ls urgenL work Lo be performed on machlnes,
lnsLallaLlons, or equlpmenL, ln order Lo avold serlous loss or
damage Lo Lhe employer or some oLher cause of slmllar naLure,
(d) When Lhe work ls necessary Lo prevenL loss or damage Lo
perlshable goods, and
(e) Where Lhe compleLlon or conLlnuaLlon of Lhe work sLarLed
before Lhe elghLh hour ls necessary Lo prevenL serlous
obsLrucLlon or pre[udlce Lo Lhe buslness or operaLlons of Lhe
employer. Any employee requlred Lo render overLlme work
under Lhls ArLlcle shall be pald Lhe addlLlonal compensaLlon
requlred ln Lhls ChapLer.

A8DULIUAnID k. IGCAULANVS SLCUkI1 & CkLDI1
INVLS1IGA1ICN, INC. (2012)
l: Abdul was employed by SecurlLy and CredlL lnvesLlgaLlon as a
securlLy guard. Pe flled a complalnL wlLh Lhe LA for nonpaymenL
of overLlme and ln supporL of hls clalm, he submlLLed respecLlve
dally Llme records reflecLlng Lhe number of hours served and
Lhelr wages for Lhe same.
P: 1here was no subsLanLlal evldence Lo supporL Lhe granL of
overLlme pay as Lhe submlLLed lLemlzed compuLaLlons were
handwrlLLen, unslgned, and unauLhenLlcaLed and Lhere ls no way
of verlfylng Lhe LruLh from such.

6. C. UNDLk1IML WCkk]LLAVL

LC, 88. uoJettlme oot offset by ovettlme. - underLlme work on
any parLlcular day shall noL be offseL by overLlme work on any
oLher day. ermlsslon glven Lo Lhe employee Lo go on leave on
some oLher day of Lhe week shall noL exempL Lhe employer from
paylng Lhe addlLlonal compensaLlon requlred ln Lhls ChapLer.
d. AddlLlonal compensaLlon

6.D. ADDI1ICNAL CCMLNSA1ICN

LC, 87. Ovettlme wotk. - Work may be performed beyond elghL
(8) hours a day provlded LhaL Lhe employee ls pald for Lhe
overLlme work, an addlLlonal compensaLlon equlvalenL Lo hls
regular wage plus aL leasL LwenLy-flve percenL (23) Lhereof.
Work performed beyond elghL hours on a hollday or resL day
shall be pald an addlLlonal compensaLlon equlvalenL Lo Lhe raLe
of Lhe flrsL elghL hours on a hollday or resL day plus aL leasL LhlrLy
percenL (30) Lhereof.


7. NIGn1 WCkk
7. A. CCVLkAGL]LkCLUSICNS

Ck, 8ook III, ku|e II Sec. 1. Coverage. 1hls 8ule shall apply Lo
all employees excepL:
(a) 1hose of Lhe governmenL and any of lLs pollLlcal subdlvlslons,
lncludlng governmenL-owned and/or conLrolled corporaLlons,
(b) 1hose of reLall and servlce esLabllshmenLs regularly
employlng noL more Lhan flve (3) workers,
(c) uomesLlc helpers and persons ln Lhe personal servlce of
anoLher,
(d) Managerlal employees as deflned ln 8ook 1hree of Lhls Code,
(e) lleld personneland oLher employees whose Llme and
performance ls unsupervlsed by Lhe employer lncludlng Lhose
who are engaged on Lask or conLracL basls, purely commlsslon
basls, or Lhose who are pald a flxed amounL for performlng work
lrrespecLlve of Lhe Llme consumed ln Lhe performance Lhereof.

7.C. ADDI1ICNAL CCMLNSA1ICN

LC, 86. Nlqbt sblft Jlffeteotlol. - Lvery employee shall be pald a
nlghL shlfL dlfferenLlal of noL less Lhan Len percenL (10) of hls
regular wage for each hour of work performed beLween Len
oclock in the evening and six oclock in the morning.

Ck, 8ook III, ku|e II Sec. 2. nlghL shlfL dlfferenLlal. An
employee shall be pald nlghL shlfL dlfferenLlal of no less Lhan Len
per cenL (10) of hls regular wage for each hour of work
performed beLween Len o'clock ln Lhe evenlng and slx o'clock ln
Lhe mornlng.

Ck, 8ook III, ku|e II Sec. 3. AddlLlonal compensaLlon. Where
an employee ls permlLLed or suffered Lo work on Lhe perlod
covered afLer hls work schedule, he shall be enLlLled Lo hls
regular wage plus aL leasL LwenLy-flve per cenL (23) and an
addlLlonal amounL of no less Lhan Len per cenL (10) of such
overLlme raLe for each hour or work performed beLween 10 p.m.
Lo 6 a.m.

Ck, 8ook III, ku|e II Sec. 4. AddlLlonal compensaLlon on
scheduled resL day/speclal hollday. An employee who ls
requlred or permlLLed Lo work on Lhe perlod covered durlng resL
days and/or speclal holldays noL falllng on regular holldays, shall
be pald a compensaLlon equlvalenL Lo hls regular wage plus aL
leasL LhlrLy (30) per cenL and an addlLlonal amounL of noL less
Lhan Len (10) per cenL of such premlum pay raLe for each hour
of work performed.

Ck, 8ook III, ku|e II Sec. S. AddlLlonal compensaLlon on regular
holldays. lor work on Lhe perlod covered durlng regular
holldays, an employee shall be enLlLled Lo hls regular wage
durlng Lhese days plus an addlLlonal compensaLlon of no less
Lhan Len (10) per cenL of such premlum raLe for each hour of
work performed

CCMU1A1ICNS
Mln. dally wage (nC8 2012) = 436
Mln. hourly raLe = 436/8 hours =37/hr
CverLlme raLe 100 +23 = 123
! 37/hr x 1.23 = 71.23/hr
nlghL Llme 10pm-6am = 100 + 10 = 110
! 37 x 1.1 = 62.7

LLAN1C CCNSCLIDA1LD MINING CC. VS LLAN1C
LCCAL S1AII UNICN (2008)
l: LepanLo ConsolldaLed Mlnlng Company and Lhe LepanLo Local
SLaff unlon enLered lnLo a C8A for nlghL dlfferenLlals, agreelng
LhaL Lhe company shall conLlnue Lo pay nlghLshlfL dlfferenLlal for
work durlng Lhe durlng Lhe flrsL and Lhlrd shlfLs Lo all covered
employees wlLhln Lhe bargalnlng unlL as follows: llrsL ShlfL
(11:00 p.m. Lo 7:00 a.m) = 20 of Lhe baslc raLe. lor Lhe 1hlrd
ShlfL (3:00 p.m. Lo 11:00 p.m.) = 13 of Lhe baslc raLe.Powever,
for overLlme work, whlch exLends beyond Lhe regular day shlfL
(7:00 a.m. Lo 3:00 p.m.), Lhere [wlll] be no nlghL dlfferenLlal pay
added before Lhe overLlme pay ls calculaLed. 1he unlon ls now
alleglng LhaL peLlLloner falled Lo pay Lhe nlghL shlfL dlfferenLlal
and longevlLy pay of respondenL's members as provlded ln Lhe
C8A.
P: ln order Lo ascerLaln lnLenLlon of parLles, Lhelr
conLemporaneous and subsequenL acLs as well as Lhelr
negoLlaLlng and conLracLual hlsLory and evldence of pasL
pracLlces musL be consldered. uurlng Lhe prevlous C8As
beLween peLlLloner and respondenL, LepanLo pald nlghL shlfL
dlfferenLlals for work performed beyond 3:00 p.m. AcLually,
LepanLo also pald nlghL shlfL dlfferenLlal for work beyond 3:00
p.m. durlng Lhe effecLlvlLy of Lhe 4
Lh
CBA but theyre saying that
its a mistake by the accounting dept. However, they failed to
presenL any convlnclng evldence Lo prove LhaL Lhe paymenL was
erroneous. lL Lherefore afflrms Lhe lnLenLlon of Lhe parLles Lo
Lhe C8A Lo granL nlghL shlfL dlfferenLlal for work performed
beyond 3:00 p.m.


SnLLL CIL CC. CI 1nL nILIINLS, L1D. VS NA1ICNAL
LA8Ck UNICN (1948)

l: 1he naLlonal Labor unlon, on behalf of Lhe Shell nlghLworkers,
broughL a complalnL for compensaLlon agalnsL Shell for
compensaLlon or addlLlonal wages of Lhe nlghLworkers who
would work nlghL shlfLs. Cl8: Crdered Shell Lo pay Lhelr
nlghLworkers compensaLlon of 30 of Lhe regular wage of
dayworkers

P: 1he nlghLworkers are enLlLled Lo Lhe addlLlonal 30.
nlghLwork ls deemed Lo be more burdensome for Lhe workers,
and also affecLs Lhelr healLh, hence Lhey are enLlLled Lo
compensaLlon. Work durlng Lhe nlghL ls also more cumbersome
and lL deserves furLher remuneraLlon. 1here ls no posslble
argumenL agalnsL Lhe unlversal facL LhaL regular work ls normal
and ordlnary durlng Lhe day, buL ls excepLlonal and [usLlfled only
for cerLaln grave reasons durlng Lhe nlghL. lor some, humanlLy
has always worked durlng Lhe day

8. WLLkL kLS1 LkICDS
1. CCVLkAGL]LkCLUSICNS

ln approprlaLe regulaLlons. As used hereln, "moooqetlol
employees" refer Lo Lhose whose prlmary duLy conslsLs of Lhe
managemenL of Lhe esLabllshmenL ln whlch Lhey are employed
or of a deparLmenL or subdlvlslon Lhereof, and Lo oLher offlcers
or members of Lhe managerlal sLaff. "llelJ petsoooel" shall refer
Lo non-agrlculLural employees who regularly perform Lhelr
duLles away from Lhe prlnclpal place of buslness or branch offlce
of Lhe employer and whose acLual hours of work ln Lhe fleld
cannoL be deLermlned wlLh reasonable cerLalnLy.

LC, 91. klqbt to weekly test Joy.
(a) lL shall be Lhe duLy of every employer, wheLher operaLlng for
proflL or noL, Lo provlde each of hls employees a resL perlod of
noL less Lhan LwenLy-four (24) consecuLlve hours afLer every slx
(6) consecuLlve normal work days.
(b) 1he employer shall deLermlne and schedule Lhe weekly resL
day of hls employees sub[ecL Lo collecLlve bargalnlng agreemenL
and Lo such rules and regulaLlons as Lhe SecreLary of Labor and
LmploymenL may provlde. Powever, Lhe employer shall respecL
Lhe preference of employees as Lo Lhelr weekly resL day when
such preference ls based on rellglous grounds.

Ck, 8ook III, ku|e III Sec. 1. Ceneral sLaLemenL on coverage.
1hls 8ule shall apply Lo all employers wheLher operaLlng for
proflL or noL, lncludlng publlc uLlllLles operaLed by prlvaLe
persons.

2. kIGn1 1C WLLkL kLS1 LkICD

LC, 91(a) klqbt to weekly test Joy. - (a) lL shall be Lhe duLy of
every employer, wheLher operaLlng for proflL or noL, Lo provlde
each of hls employees a resL perlod of noL less Lhan LwenLy-four
(24) consecuLlve hours afLer every slx (6) consecuLlve normal
work days.

Ck, 8ook III, ku|e III Sec. 3. Weekly resL day. Lvery employer
shall glve hls employees a resL perlod of noL less Lhan LwenLy-
four (24) consecuLlve hours afLer every slx consecuLlve normal
work days.

3. DL1LkMINA1ICN]kLILkLNCL CI
LMLCLL

Who deLermlnes resL days?
! Ceneral rule: employer
! LxcepLlon: preference based upon rellglous
grounds
Can an employer compel an employee Lo work on a
resL day?
! Ceneral rule: no
! LxcepLlon: arL. 92

LC, 91(b) 1he employer shall deLermlne and schedule Lhe weekly
resL day of hls employees sub[ecL Lo collecLlve bargalnlng
agreemenL and Lo such rules and regulaLlons as Lhe SecreLary of
Labor and LmploymenL may provlde. Powever, Lhe employer
shall respecL Lhe preference of employees as Lo Lhelr weekly resL
day when such preference ls based on rellglous grounds.

Ck, 8ook III, ku|e III Sec. 4. reference of employee. 1he
preference of Lhe employee as Lo hls weekly day of resL shall be
respecLed by Lhe employer lf Lhe same ls based on rellglous
grounds. 1he employee shall make known hls preference Lo Lhe
employer ln wrlLlng aL leasL seven (7) days before Lhe deslred
effecLlvlLy of Lhe lnlLlal resL day so preferred. Where, however,
Lhe cholce of Lhe employee as Lo hls resL day based on rellglous
grounds wlll lnevlLably resulL ln serlous pre[udlce or obsLrucLlon
Lo Lhe operaLlons of Lhe underLaklng and Lhe employer cannoL
normally be expecLed Lo resorL Lo oLher remedlal measures, Lhe
Law 113 Labor SLandards Law | rof. uaway age SS of 90

employer may so schedule Lhe weekly resL day of hls cholce for
aL leasL Lwo (2) days ln a monLh.

Ck, 8ook III, ku|e III Sec. S. Schedule of resL day. (a) Where
Lhe weekly resL ls glven Lo all employees slmulLaneously, Lhe
employer shall make known such resL perlod by means of a
wrlLLen noLlce posLed consplcuously ln Lhe work place aL leasL
one week before lL becomes effecLlve. (b) Where Lhe resL perlod
ls noL granLed Lo all employees slmulLaneously and collecLlvely,
Lhe employer shall make known Lo Lhe employees Lhelr
respecLlve schedules of weekly resL Lhrough wrlLLen noLlces
posLed consplcuously ln Lhe work place aL leasL one week before
Lhey become effecLlve.

4. CCMULSCk WCkk CN kLS1 DA

LC, 92. wbeo employet moy tepolte wotk oo o test Joy. - 1he
employer may requlre hls employees Lo work on any day:
(a) ln case of acLual or lmpendlng emergencles caused by serlous
accldenL, flre, flood, Lyphoon, earLhquake, epldemlc or oLher
dlsasLer or calamlLy Lo prevenL loss of llfe and properLy, or
lmmlnenL danger Lo publlc safeLy,
(b) ln cases of urgenL work Lo be performed on Lhe machlnery,
equlpmenL, or lnsLallaLlon, Lo avold serlous loss whlch Lhe
employer would oLherwlse suffer,
(c) ln Lhe evenL of abnormal pressure of work due Lo speclal
clrcumsLances, where Lhe employer cannoL ordlnarlly be
expecLed Lo resorL Lo oLher measures,
(d) 1o prevenL loss or damage Lo perlshable goods,
(e) Where Lhe naLure of Lhe work requlres conLlnuous
operaLlons and Lhe sLoppage of work may resulL ln lrreparable
ln[ury or loss Lo Lhe employer, and
(f) under oLher clrcumsLances analogous or slmllar Lo Lhe
foregolng as deLermlned by Lhe SecreLary of Labor and
LmploymenL

Ck, 8ook III, ku|e III Sec. 6. When work on resL day auLhorlzed.
An employer may requlre any of hls employees Lo work on hls
scheduled resL day for Lhe duraLlon of Lhe followlng emergencles
and excepLlonal condlLlons:

(a) ln case of acLual or lmpendlng emergencles caused by
serlous accldenL, flre, flood, Lyphoon, earLhquake, epldemlc or
oLher dlsasLer or calamlLy, Lo prevenL loss of llfe or properLy, or
ln cases of force ma[eure or lmmlnenL danger Lo publlc safeLy,
(b) ln case of urgenL work Lo be performed on machlnerles,
equlpmenL or lnsLallaLlons Lo avold serlous loss whlch Lhe
employer would oLherwlse suffer,
(c) ln Lhe evenL of abnormal pressure of work due Lo speclal
clrcumsLances, where Lhe employer cannoL ordlnarlly be
expecLed Lo resorL Lo oLher measures,
(d) 1o prevenL serlous loss of perlshable goods,

(e) Where Lhe naLure of Lhe work ls such LhaL Lhe employees
have Lo work conLlnuously for seven (7) days ln a week or more,
as ln Lhe case of Lhe crew members of a vessel Lo compleLe a
voyage and ln oLher slmllar cases, and
(f) When Lhe work ls necessary Lo avall of favorable weaLher or
envlronmenLal condlLlons where performance or quallLy of work
ls dependenL Lhereon. no employee shall be requlred agalnsL hls
wlll Lo work on hls scheduled resL day excepL under
clrcumsLances provlded ln Lhls SecLlon: rovlded, Powever, LhaL
where an employee volunLeers Lo work on hls resL day under
oLher clrcumsLances, he shall express such deslre ln wrlLlng,
sub[ecL Lo Lhe provlslons of SecLlon 7 hereof regardlng addlLlonal
compensaLlon.

S. kLMIUM A

LC, 93(a) compeosotloo fot test Joy, 5ooJoy ot bollJoy wotk. -
(a) Where an employee ls made or permlLLed Lo work on hls
scheduled resL day, he shall be pald an addlLlonal compensaLlon
of aL leasL LhlrLy percenL (30) of hls regular wage. An employee
shall be enLlLled Lo such addlLlonal compensaLlon for work
performed on Sunday only when lL ls hls esLabllshed resL day.

LC, 93(b). When Lhe naLure of Lhe work of Lhe employee ls such
LhaL he has no regular workdays and no regular resL days can be
scheduled, he shall be pald an addlLlonal compensaLlon of aL
leasL LhlrLy percenL (30) of hls regular wage for work
performed on Sundays and holldays.

LC, 93(c). Work performed on any speclal hollday shall be pald
an addlLlonal compensaLlon of aL leasL LhlrLy percenL (30) of
Lhe regular wage of Lhe employee. Where such hollday work
falls on the employees scheduled rest day, he shall be entitled
Lo an addlLlonal compensaLlon of aL leasL flfLy per cenL (30) of
hls regular wage.

Ck, 8ook III, ku|e III Sec. 7. CompensaLlon on resL
day/Sunday/hollday.
(a) LxcepL Lhose employees referred Lo under SecLlon 2, 8ule l,
8ook 1hree, an employee who ls made or permlLLed Lo work on
hls scheduled resL day shall be pald wlLh an addlLlonal
compensaLlon of aL leasL 30 of hls regular wage. An employee
performed on a Sunday only when lL ls hls esLabllshed resL day.
(b) Where Lhe naLure of Lhe work of Lhe employee ls such LhaL
he has no regular work days and no regular resL days can be
leasL 30 of hls regular wage for work performed on Sundays
and holldays.

(c) Work performed on any speclal hollday shall be pald wlLh an
addlLlonal compensaLlon of aL leasL 30 of Lhe regular wage of
Lhe employees. Where such hollday work falls on Lhe employee's
scheduled resL day, he shall be enLlLled Lo addlLlonal
compensaLlon of aL leasL 30 of hls regular wage.
(d) 1he paymenL of addlLlonal compensaLlon for work performed
on regular hollday shall be governed by 8ule lv, 8ook 1hree, of
Lhese regulaLlons.
(e) Where Lhe collecLlve bargalnlng agreemenL or oLher
appllcable employmenL conLracL sLlpulaLes Lhe paymenL of a
hlgher premlum pay Lhan LhaL prescrlbed under Lhls SecLlon, Lhe
employer shall pay such hlgher raLe.

6. WCkk CN A SUNDA Ck nCLIDA WnICn IS
ALSC SCnLDULLD kLS1 DA

LC, 93(a). compeosotloo fot test Joy, 5ooJoy ot bollJoy wotk. -
performed on Sunday only when lL ls hls esLabllshed resL day

LC, 93(b) When Lhe naLure of Lhe work of Lhe employee ls such

Ck, 8ook III, ku|e III Sec. 7(a). CompensaLlon on resL
day/Sunday/hollday. (a) LxcepL Lhose employees referred Lo
under SecLlon 2, 8ule l, 8ook 1hree, an employee who ls made
or permlLLed Lo work on hls scheduled resL day shall be pald wlLh
an addlLlonal compensaLlon of aL leasL 30 of hls regular wage.
An employee shall be enLlLled Lo such addlLlonal compensaLlon
for work performed on a Sunday only when lL ls hls esLabllshed
resL day.

Ck, 8ook III, ku|e III Sec. 7(b). Where Lhe naLure of Lhe work of
Lhe employee ls such LhaL he has no regular work days and no
regular resL days can be scheduled, he shall be pald an addlLlonal
compensaLlon of aL leasL 30 of hls regular wage for work

7. C8A CN nIGnLk kLMIUM A

LC, 93(d) Where Lhe collecLlve bargalnlng agreemenL or oLher
appllcable employmenL conLracL sLlpulaLes Lhe paymenL of a
hlgher premlum pay Lhan LhaL prescrlbed under Lhls ArLlcle, Lhe
employer shall pay such hlgher raLe.

Ck, 8ook III, ku|e III Sec. 7(e). Where Lhe collecLlve bargalnlng
agreemenL or oLher appllcable employmenL conLracL sLlpulaLes
Lhe paymenL of a hlgher premlum pay Lhan LhaL prescrlbed
under Lhls SecLlon, Lhe employer shall pay such hlgher raLe.

Ck, 8ook III, ku|e III Sec. 9. 8elaLlon Lo agreemenLs. noLhlng
hereln shall prevenL Lhe employer and hls employees or Lhelr
represenLaLlves ln enLerlng lnLo any agreemenL wlLh Lerms more
favorable Lo Lhe employees Lhan Lhose provlded hereln, or be
used Lo dlmlnlsh any beneflL granLed Lo Lhe employees under
exlsLlng laws, agreemenLs, and volunLary employer pracLlces.

CompuLaLlons:
CverLlme on a speclal hollday
! 130 x 30 = 169 96.33/hr
Work on a speclal hollday LhaL falls on a resL day
! 130 83.30 / hr
! CverLlme:
130 x 30 = 193 111.13/hr
8egular hollday
! dld no work 100
! Worked 200 114
! 8egular hollday on a resL day
200 x 30 = 260 148.20/hr
! CverLlme work durlng a regular hollday on a
resL day
260 x 30 = 338 192.66/hr

C. nCLIDAS

LC, 94(a) klqbt to bollJoy poy. - (a) Lvery worker shall be pald hls
regular dally wage durlng regular holldays, excepL ln reLall and
servlce esLabllshmenLs regularly employlng less Lhan Len (10)
workers.

Ck, 8ook III, ku|e IV Sec. 1. Coverage. 1hls rule shall apply Lo
(a) 1hose of Lhe governmenL and any of Lhe pollLlcal subdlvlslon,
lncludlng governmenL-owned and conLrolled corporaLlon,
(b) 1hose of reLall and servlce esLabllshmenLs regularly
employlng less Lhan Len (10) workers,
(c) uomesLlc helpers and persons ln Lhe personal servlce of
anoLher,
(d) Managerlal employees as deflned ln 8ook 1hree of Lhe Code,
(e) lleld personnel and oLher employees whose Llme and
performance ls unsupervlsed by Lhe employer lncludlng Lhose
who are engaged on Lask or conLracL basls, purely commlsslon
basls, or Lhose who are pald a flxed amounL for performlng work
lrrespecLlve of Lhe Llme consumed ln Lhe performance Lhereof.

1.A. kL1AIL LS1A8LISnMLN1

Ikk, kA 6727 par. I. "8eLall LsLabllshmenL" ls one prlnclpally
engaged ln Lhe sale of goods Lo end-users for personal or
household use.

1.8. SLkVICL LS1A8LISnMLN1

Ikk, kA 6727 par. g. "Servlce LsLabllshmenL" ls one prlnclpally
engaged ln Lhe sale of servlce Lo lndlvlduals for Lhelr own or
household use and ls generally recognlzed as such

MAN1kADL]IMMC DIVISICN LMLCLLS AND
WCkkLkS UNICN VS. 8ACUNGAN (1986)

l: 1he unlon quesLlons Lhe declslon of Lhe respondenL LhaL
ManLrade uevelopmenL CorporaLlon ls noL under a legal
obllgaLlon Lo pay hollday pay (as provlded for ln ArL. 94 of Lhe
LC) Lo lLs monLhly pald employees who are unlformly pald by
monLh, lrrespecLlve of Lhe number of worklng days Lhereln.
under ArL. 94 of Lhe LC, monLhly salarled employees are noL
among Lhose excluded from recelvlng hollday pay. 8uL Lhey
appear Lo be excluded under Sec. 2, 8ule lv, 8ook lll of Lhe 8ules
and 8egulaLlons lmplemenLlng Lhe sald provlslon.

P: Sec. 2, 8ule lv, 8ook lll of Lhe lmplemenLlng rules and pollcy
lnsLrucLlon no. 9, lssued by Lhe Lhen SecreLary of Labor are null
and void since in the guise of clarifying the Labor Codes
provlslons on hollday pay, Lhey ln effecL amended Lhem by
enlarglng Lhe scope of Lhelr lncluslon.

2. kLGULAk nCLIDAS]SLCIAL nCLIDAS

kA 9492
a) kegu|ar no||days
New years Day-!anuary 1
Maundy 1hursday-Movable daLe
Cood lrlday-Movable daLe
Lldul llLr-Movable daLe
Araw ng kaglLlngan (8aLaaan and Corregldor uay)-Monday
nearesL Aprll 9
Labor uay-Monday nearesL May 1
lndependence uay-Monday nearesL !une 12
naLlonal Peroes uay-LasL Monday of AugusL
8onlfaclo uay-Monday nearesL november 30
ChrlsLmas uay-uecember 23
8lzal uay-Monday nearesL uecember 30

b) Nat|onw|de Spec|a| no||days:
nlnoy Aqulno uay-Monday nearesL AugusL 21
All SalnLs uay-november 1
LasL uay of Lhe ?ear-uecember 31
3. nCLIDA A

LC, 94(b). 1he employer may requlre an employee Lo work on
any hollday buL such employee shall be pald a compensaLlon
equlvalenL Lo Lwlce hls regular raLe

3. A. IACUL1 IN kIVA1L SCnCCL

Ck, 8ook III, ku|e IV Sec. 8(a). Pollday pay of cerLaln employees.
(a) rlvaLe school Leachers, lncludlng faculLy members of
colleges and unlverslLles, may noL be pald for Lhe regular
holldays durlng semesLral vacaLlons. 1hey shall, however, be
pald for Lhe regular holldays durlng ChrlsLmas vacaLlon.

ICSL kI2AL CCLLLGL V NLkC (1987)
l: !ose 8lzal College have faculLy who by conLracL are pald
compensaLlon per sLudenL conLracL hour and who are noL
enLlLled Lo unworked regular hollday pay conslderlng LhaL Lhese
regular holldays have been excluded ln Lhe programmlng of Lhe
sLudenL conLacL hours. 1hey flled a complalnL agalnsL !8C for
non-paymenL of hollday pay.
P: 8egular holldays speclfled as such by law are known Lo boLh
school and faculLy members as no class days, cerLalnly Lhey do
noL expecL paymenL for such days, and Lhls was clearly ln Lhelr
mlnd when Lhey enLered lnLo such Leachlng conLracLs. As Lo
Speclal ubllc Polldays, however, Lhe faculLy member pald by
Lhe hour ls deprlved of expecLed lncome and should be
compensaLed for such. Same goes for when classes are called off
or shorLened on accounL of Lyphoons, rallles, and Lhe llke.
3.8. DIVISCk AS IAC1Ck

1kANS-ASIA nIL LMLCLLS ASSCCIA1ICN V NLkC
(1999)
l: 1ALA flled a peLlLlon Lo clalm alleged hollday pay ln arrears
from 1rans-Asla (hlls.) from Lhe perlod prlor Lo Lhe slgnlng of
Lhelr C8A. ln lLs defense, 1rans-Asla clalm LhaL Lhe hollday pay of
lLs employees had always been lncluded ln Lhelr monLhly salarles
as evidence by the companys consistent use of the 286 days
dlvlsor whlch accounLed for Lhe 10 legal holldays ln Lhe year. 1he
SC ruled ln favor of 1rans-Asla wlLh Lhe modlflcaLlon LhaL,
followlng Lhe correcL compuLaLlon and Laklng lnLo accounL LhaL
one of Lhe holldays always falls on a Sunday, Lhe dlvlsor should
be increased to 287. The SC added, however, that because the
sald lncrease would ln some lnsLances pre[udlce Lhe employees,
ln vlolaLlon of Lhe proscrlpLlon agalnsL non-dlmlnuLlon of
benefits under Sec. 100 of the labor code, the 287 divisor

should only be used for compuLaLlons whlch would be
advanLageous Lo Lhe peLlLloners (l.e. deducLlon for absences).
P: 1rans-Asla's lncluslon of hollday pay ln peLlLloners' monLhly
salary ls clearly esLabllshed by lLs conslsLenL use of Lhe dlvlsor of
"286" days ln Lhe compuLaLlon of lLs employees' beneflLs and
deducLlons. lf one ls Lo deducL Lhe unworked 32 Sundays and 26
SaLurdays (derlved by dlvldlng 32 SaLurdays ln half slnce
peLlLloners are requlred Lo work half-day on SaLurdays) from Lhe
363 calendar days ln a year, Lhe resulLlng dlvlsor would be 286
days (should acLually be 287 days). Slnce Lhe Len (10) legal
holldays were never lncluded ln subLracLlng Lhe unworked and
unpald days ln a calendar year, Lhe only loglcal concluslon would
be LhaL Lhe paymenL for hollday pay ls already lncorporaLed lnLo
Lhe sald dlvlsor.
1he SC, however, made a modlflcaLlon Lo Lhe dlvlsor used by
1rans-Asla, changlng lL Lo 287. 262 days (based on suggesLed
formula ln Sec. 6 of Lhe l88 of 8A 6727) + 26 worklng SaLurdays =
288 (noL 286). Powever, 1 of Lhe regular holldays provlded for ln
LC 203, naLlonal Peroes uay, always falls on Lhe lasL Sunday of
AugusL and so 1 day musL be subLracLed. 8uL because Lhe sald
lncrease would ln some lnsLances pre[udlce Lhe employees, ln
vlolaLlon of Lhe proscrlpLlon agalnsL non-dlmlnuLlon of beneflLs
under Sec. 100 of the labor code, the 287 divisor should only
be used for compuLaLlons whlch would be advanLageous Lo Lhe
peLlLloners (l.e. deducLlon for absences) and noL for for
compuLaLlons whlch would dlmlnlsh Lhe exlsLlng beneflLs of Lhe
employees (l.e., overLlme pay, hollday pay and leave
converslons).
3. C. SUNDA

LC, 93(a). compeosotloo fot test Joy, 5ooJoy ot bollJoy wotk. -
performed on Sunday only when lL ls hls esLabllshed resL day

LC, 93(b) When Lhe naLure of Lhe work of Lhe employee ls such

Ck, 8ook III, ku|e III Sec. 2. on Sundays/Polldays. All
esLabllshmenLs and enLerprlses may operaLe or open for
buslness on Sundays and holldays provlded LhaL Lhe employees
are glven Lhe weekly resL day and Lhe beneflLs as provlded ln Lhls
8ule

WLLLING1CN INVLS1MLN1 INC. V 1kAIANC (199S)
l: WelllngLon llour Mllls was lnspecLed by a Labor Cfflcer, and
he reported on his finding that there was a nonpayment of
regular holldays falllng on a Sunday for monLhly-pald
employees
P: 1he monLhly salary flxed by WelllngLon Lo provlde for
compensaLlon for every worklng day of Lhe year lncludlng
holldays speclfled by law - and excludlng only Sundays. ln flxlng
the salary, Wellington used the 314 factor; that is to say, it
slmply deducLed 31 Sundays from 363 days normally comprlslng
a year and used Lhe dlfference 314, as basls for deLermlnlng Lhe
monLhly salary so lL already pays for all Lhe days of Lhe year
excepL Lhe Sundays.
3.D. MUSLIM nCLIDA

LC, 169. lotelqo employmeot. - 1he Commlsslon shall ensure
adequaLe coverage of llllplno employees employed abroad,
sub[ecL Lo regulaLlons as lL may prescrlbe.

LC, 170. ffectlve Jote of covetoqe. - Compulsory coverage of Lhe
employer durlng Lhe effecLlvlLy of Lhls 1lLle shall Lake effecL on
Lhe flrsL day of hls operaLlon, and LhaL of Lhe employee, on Lhe
daLe of hls employmenL.

LC, 171. keqlsttotloo. - Lach employer and hls employees shall
reglsLer wlLh Lhe SysLem ln accordance wlLh lLs regulaLlons

LC, 172. llmltotloo of lloblllty. - 1he SLaLe lnsurance lund shall
be llable for compensaLlon Lo Lhe employee or hls dependenLs,
excepL when Lhe dlsablllLy or deaLh was occasloned by Lhe
employees intoxication, willful intention to injure or kill himself
or anoLher, noLorlous negllgence, or oLherwlse provlded under
Lhls 1lLle.

D 1083, 169. Offlclol Mosllm bollJoys. 1he followlng are hereby
recognlzed as legal Musllm holldays:
(a) 'Amun!adld (new ?ear), whlch falls on Lhe flrsL day of Lhe
flrsL lunar monLh of Muharram,
(b) Maulld-un-nabl (8lrLhday of Lhe ropheL Muhammad), whlch
falls on Lhe LwelfLh day of Lhe Lhlrd lunar monLh of 8abl-ul-
Awwal,
(c) LallaLullsraWalMl'ra[ (nocLurnal !ourney and Ascenslon of Lhe
ropheL Muhammad), whlch falls on Lhe LwenLy-sevenLh day of
Lhe sevenLh lunar monLh of 8a[ab,
(d) 'ld-ul-llLr (Parl 8aya ausa), whlch falls on Lhe flrsL day of Lhe
LenLh lunar monLh of Shawwal, commemoraLlng Lhe end of Lhe
fasLlng season, and
(e) 'ld-ul-Adha (Parl 8a[a Pa[l), whlch falls on Lhe LenLh day of
Lhe LwelfLh lunar monLh of uhu 1-Pl[[a.

D 1083, 170. ltovloces ooJ cltles wbete offlclolly obsetveJ.

(1) Musllm holldays shall be offlclally observed ln Lhe rovlnces
of 8asllan, Lanao del norLe, Lanao del Sur, Magulndanao, norLh
CoLabaLo, SulLan kudaraL, Sulu, 1awl-1awl, Zamboanga del norLe
and Zamboanga del Sur, and ln Lhe ClLles of CoLabaLo, lllgan,
Marawl, agadlan, and Zamboanga and ln such oLher Musllm
provlnces and clLles as may hereafLer be creaLed.

(2) upon proclamaLlon by Lhe resldenL of Lhe hlllpplnes,
Musllm holldays may also be offlclally observed ln oLher
provlnces and clLles.

D 1083, 171. uotes of obsetvooce. 1he daLes of Musllm
holldays shall be deLermlned by Lhe Cfflce of Lhe resldenL of
Lhe hlllpplnes ln accordance wlLh Lhe Musllm Lunar Calendar
(Pl[ra).

D 1083, 172. Obsetvooce of Mosllm employees.

(1) All Musllm governmenL offlclals and employees ln places
oLher Lhan Lhose enumeraLed under ArLlcle 170 shall also be
excused from reporLlng Lo offlce ln order LhaL Lhey may be able
Lo observe Musllm holldays.

(2) 1he resldenL of Lhe hlllpplnes may, by proclamaLlon,
requlre prlvaLe offlces, agencles or esLabllshmenLs Lo excuse
Lhelr Musllm employees from reporLlng for work durlng a
Musllm hollday wlLhouL reducLlon ln Lhelr usual compensaLlon.

SMC v CA (2002)
l: 1he uCLL lllgan ulsLrlcL Cfflce dlscovered LhaL Lhere was
underpaymenL by SMC of regular Musllm hollday pay Lo lLs
employees.
P: Lven Lhough ArLlcle 3(3) of resldenLlal uecree no. 1083
provides that (t)he provisions of this Code shall be applicable
only to Muslims x xx., there should be no distinction between
Musllms and non-Musllms as regards paymenL of beneflLs for
Musllm holldays. Slnce Musllms recelve hollday pay on ChrlsLlan
holldays, non-Musllms musL recelve hollday pay on Musllm
holldays as well.
4. A8SLNCLS

Ck, 8ook III, ku|e IV Sec. 6(a). Absences. (a) All covered
employees shall be enLlLled Lo Lhe beneflL provlded hereln when
Lhey are on leave of absence wlLh pay. Lmployees who are on
leave of absence wlLhouL pay on Lhe day lmmedlaLely precedlng
a regular hollday may noL be pald Lhe requlred hollday pay lf he
has noL worked on such regular hollday

Ck, 8ook III, ku|e IV Sec. 10. Success|ve regu|ar ho||days.
Where Lhere are Lwo (2) successlve regular holldays, llke Poly
1hursday and Cood lrlday, an employee may noL be pald for
boLh holldays lf he absenLs hlmself from work on Lhe day
lmmedlaLely precedlng Lhe flrsL hollday, unless he works on Lhe
flrsL hollday, ln whlch case he ls enLlLled Lo hls hollday pay on Lhe
second hollday.

S. NCN-WCkkING DA]SCnLDULLD kLS1 DA

Ck, 8ook III, ku|e IV Sec. 6(c). Where Lhe day lmmedlaLely
precedlng Lhe hollday ls a non-worklng day ln Lhe esLabllshmenL
or Lhe scheduled resL day of Lhe employee, he shall noL be
deemed Lo be on leave of absence on LhaL day, ln whlch case he
shall be enLlLled Lo Lhe hollday pay lf he worked on Lhe day
lmmedlaLely precedlng Lhe non-worklng day or resL day.

D. SLkVICL INCLN1IVL LLAVL


LC, 9S(a) klqbt to setvlce loceotlve leove. - (a) Lvery employee
who has rendered aL leasL one year of servlce shall be enLlLled Lo
a yearly servlce lncenLlve leave of flve days wlLh pay.

LC, 9S(b) 1he employer may requlre an employee Lo work on
any hollday buL such employee shall be pald a compensaLlon
equlvalenL Lo Lwlce hls regular raLe,

Ck, 8ook III, ku|e V Sec. 1. Coverage. 1hls rule shall apply Lo
(a) 1hose of Lhe governmenL and any of lLs pollLlcal subdlvlslons,
lncludlng governmenL-owned and conLrolled corporaLlons,
(b) uomesLlc helpers and persons ln Lhe personal servlce of
anoLher,
(c) Managerlal employees as deflned ln 8ook 1hree of Lhls Code,
(d) lleld personnel and oLher employees whose performance ls
unsupervlsed by Lhe employer lncludlng Lhose who are engaged
on Lask or conLracL basls, purely commlsslon basls, or Lhose who
are pald a flxed amounL for performlng work lrrespecLlve of Lhe
Llme consumed ln Lhe performance Lhereof,
(e) 1hose who are already en[oylng Lhe beneflL hereln provlded,
(f) 1hose en[oylng vacaLlon leave wlLh pay of aL leasL flve days,
and
(g) 1hose employed ln esLabllshmenLs regularly employlng less
Lhan Len employees


MAkA1I nA8LkDASnLk INC V NLkC (1989)
l: !aclnLo and oLhers were worklng for MakaLl Paberdashery as
seamsLresses, basLers, Lallors and planLsadoras and were pald on
a plece-raLe basls. 1hey flled a complalnL for servlce lncenLlve
leave, among oLhers.
P: 1he rules are dlfferenL as Lo servlce lncenLlve leave. 1hey are
noL enLlLled because as plece-raLe workers belng pald a flxed
amounL for performlng work lrrespecLlve of Llme consumed ln
Lhe performance Lhereof, Lhey fall under Lhe excepLlons sLaLed
ln SecLlon 1(d), 8ule v, 8ook 1hree of Lhe lmplemenLlng 8ules.
LA8Ck CCNGkLSS V NLkC SUkA

2. kLUIkLMLN1S

LC, 9S(a). klqbt to setvlce loceotlve leove. - (a) Lvery employee
who has rendered aL leasL one year of servlce shall be enLlLled Lo
a yearly servlce lncenLlve leave of flve days wlLh pay.

2.A. MLANING

Ck, 8ook III, ku|e V Sec. 2. 8lghL Lo servlce lncenLlve leave.
Lvery employee who has rendered aL leasL one year of servlce
shall be enLlLled Lo a yearly servlce lncenLlve leave of flve days
wlLh pay

Ck, 8ook III, ku|e V Sec. 3. ueflnlLlon of cerLaln Lerms. 1he
Lerm "aL leasL one-year servlce" shall mean servlce for noL less
Lhan 12 monLhs, wheLher conLlnuous or broken reckoned from
Lhe daLe Lhe employee sLarLed worklng, lncludlng auLhorlzed
absences and pald regular holldays unless Lhe worklng days ln
Lhe esLabllshmenL as a maLLer of pracLlce or pollcy, or LhaL
provlded ln Lhe employmenL conLracL ls less Lhan 12 monLhs, ln
whlch case sald perlod shall be consldered as one year.

2.8.1kLA1MLN1 CI 8LNLII1S

Ck, 8ook III, ku|e V Sec. S. 1reaLmenL of beneflL. 1he servlce
lncenLlve leave shall be commuLable Lo lLs money equlvalenL lf
noL used or exhausLed aL Lhe end of Lhe year.

L. VACA1ICN LLAVL]SICk LLAVL

NCC SkWA 1kAIIIC MANAGLMLN1 & SLCUkI1
DIVISICN WCkkLkS CkGANI2A1ICN (2010)
l: nCC publlshed Lhe vacaLlon leave schedule of lLs employees
buL nCC Skyway CorporaLlon 1rafflc ManagemenL and SecurlLy
ulvlslon Workers' CrganlzaLlon, lLs labor unlon, wanLed lLs
members Lo have Lhe preference ln schedullng Lhelr own
vacaLlon leave.
P: ln Lhe granL of vacaLlon leave prlvlleges, Lhe employer ls glven
Lhe leeway Lo lmpose condlLlons on Lhe enLlLlemenL Lo and
commuLaLlon of Lhe same, as Lhe granL of vacaLlon leave ls noL a
sLandard of law, buL a prerogaLlve of managemenL. lL ls a mere
concesslon or acL of grace of Lhe employer and noL a maLLer of
rlghL on Lhe parL of Lhe employee. Slnce Lhe granL of vacaLlon
leave ls a prerogaLlve of Lhe employer, Lhe laLLer can compel lLs
employees Lo exhausL all Lhelr vacaLlon leave credlLs.

I. A1LkNI1 LLAVL kA 8187: A1LkNI1
LLAVL AC1 CI 1996

I.1. CCVLkAGL

kA 8187 Sec. 2. noLwlLhsLandlng any law, rules and regulaLlons
Lo Lhe conLrary, every marrled male employee ln Lhe prlvaLe and
publlc secLors shall be enLlLled Lo a paLernlLy leave of seven (7)
days wlLh full pay for Lhe flrsL four (4) dellverles of Lhe leglLlmaLe
spouse wlLh whom he ls cohablLlng. 1he male employee
applylng for paLernlLy leave shall noLlfy hls employer of Lhe
pregnancy of hls leglLlmaLe spouse and Lhe expecLed daLe of
such dellvery. lor purposes, of Lhls AcL, dellvery shall lnclude
chlldblrLh or any mlscarrlage.

Ikk, kA 8187 Sec. 2. Lvery marrled male governmenL employee
shall be enLlLled Lo paLernlLy leave beneflLs of 7 days wlLh full
pay for Lhe 1sL 4 dellverles of Lhe leglLlmaLe spouse wlLh whom
he ls cohablLlng under such Lerms and condlLlons as herelnafLer
provlded.

I. 2. CCNDI1ICNS

Ikk, kA 8187 Sec. 3. noLlflcaLlon a marrled male employee
shall be enLlLled Lo paLernlLy leave by flllng Lhe requlslLe leave
appllcaLlon form wlLhln a reasonable perlod prlor Lo Lhe
expecLed dellvery excepL ln cases of mlscarrlage and abnormal
dellverles whlch were unforeseen. Approval of Lhe leave
appllcaLlon shall be mandaLory on Lhe parL of Lhe approvlng
auLhorlLy unless Lhe servlces of Lhe male employee are urgenLly
needed Lo preserve llfe and properLy ln whlch case Lhe male
employee shall be enLlLled Lo overLlme pay.

Ikk, kA 8187 Sec. 4. AvallmenL 1he paLernlLy beneflLs seL forLh
hereln may be en[oyed by Lhe quallfled male employee on Lhe
days lmmedlaLely before, durlng and afLer Lhe chlldblrLh or
mlscarrlage of hls leglLlmaLe spouse.

I. 3. WnLN 1C AVAIL CI 8LNLII1S

Ikk, kA 8187 Sec. S. valldaLlon requlremenL Any employee
who has avalled of Lhe paLernlLy leave may be requlred Lo
furnlsh hls offlce a cerLlfled Lrue copy of hls marrlage conLracL,
Lhe blrLh cerLlflcaLe of Lhe newly born chlld, medlcal cerLlflcaLe
wlLh paLhology reporLs ln case of mlscarrlage duly slgned by Lhe
aLLendlng physlclan or mldwlfe showlng Lhe acLual daLe of Lhe
chlldblrLh or mlscarrlage.

I. 4. 1kLA1MLN1 CI 8LNLII1

Ikk, kA 8187 Sec. 6. 1he beneflLs speclfled hereunder shall be
non-cumulaLlve and sLrlcLly non-converLlble Lo cash.

I. S. LNAL1 kCVISICNS

kA 8187 Sec. S. Any person, corporaLlon, LrusL, flrm,
parLnershlp, assoclaLlon or enLlLy found vlolaLlng Lhls AcL or Lhe
rules and regulaLlons promulgaLed Lhereunder shall be punlshed
by a flne noL exceedlng 1wenLy-flve Lhousand pesos (23,000) or
lmprlsonmenL of noL less Lhan LhlrLy (30)days nor more Lhan slx
(6) monLhs. lf Lhe vlolaLlon ls commlLLed by a corporaLlon, LrusL
or flrm, parLnershlp, assoclaLlon or any oLher enLlLy, Lhe penalLy
of imprisonment shall be imposed on the entitys responslble
offlcers, lncludlng, buL noL llmlLed Lo, Lhe presldenL, vlce-
presldenL, chlef execuLlve offlcer, general manager, managlng
dlrecLor or parLner dlrecLly responslble Lherefor.

Ikk, kA 8187 Sec. 7. enalLy Any governmenL offlclal or
employee found vlolaLlng any provlslon of 8A8187 or Lhese
8ules shall be punlshed by a flne noL exceedlng h23,000 or
lmprlsonmenL of noL less Lhan 30days nor more Lhan 6 monLhs.
Any governmenL offlclal or employee who flles a fraudulenL
clalm shall be punlshed wlLh separaLlon from servlce for
dlshonesLy.

I. 6. LMLCMLN1-kLLA1LD kIGn1S
AND 8LNLII1S

kA 8187 Sec. 3. ueflnlLlon of 1erm. lor purposes of Lhls AcL,
aLernlLy Leave refers Lo Lhe beneflLs granLed Lo a marrled male
employee allowlng hlm noL Lo reporL for work for seven (7) days
buL conLlnues Lo earn Lhe compensaLlon Lherefor, on Lhe
condlLlon LhaL hls spouse has dellvered a chlld or suffered a
mlscarrlage for purposes of enabllng hlm Lo effecLlvely lend
supporL Lo hls wlfe ln her perlod of recovery and/or ln Lhe
nurslng of Lhe newly-born chlld.

L. AkLN1AL LLAVL kA 8972: SOLO PARENTS
WLLIAkL AC1 CI 2000

L. 1. CCVLkAGL

kA 8972, Sec. 3(a)."Solo parenL" - any lndlvldual who falls under
any of Lhe followlng caLegorles:
(1) A woman who glves blrLh as a resulL of rape and oLher crlmes
agalnsL chasLlLy even wlLhouL a flnal convlcLlon of Lhe offender:
ltovlJeJ, 1haL Lhe moLher keeps and ralses Lhe chlld,
(2) arenL lefL solo or alone wlLh Lhe responslblllLy of
parenLhood due Lo deaLh of spouse,
parenLhood whlle Lhe spouse ls deLalned or ls servlng senLence
for a crlmlnal convlcLlon for aL leasL one (1) year,
parenLhood due Lo physlcal and/or menLal lncapaclLy of spouse
as cerLlfled by a publlc medlcal pracLlLloner,
parenLhood due Lo legal separaLlon or Je focto separaLlon from
spouse for aL leasL one (1) year, as long as he/she ls enLrusLed
wlLh Lhe cusLody of Lhe chlldren,
parenLhood due Lo declaraLlon of nulllLy or annulmenL of
marrlage as decreed by a courL or by a church as long as he/she
ls enLrusLed wlLh Lhe cusLody of Lhe chlldren,
parenLhood due Lo abandonmenL of spouse for aL leasL one (1)
year,
(8) unmarrled moLher/faLher who has preferred Lo keep and
rear her/hls chlld/chlldren lnsLead of havlng oLhers care for
Lhem or glve Lhem up Lo a welfare lnsLlLuLlon,
(9) Any oLher person who solely provldes parenLal care and
supporL Lo a chlld or chlldren,
(10) Any famlly member who assumes Lhe responslblllLy of head
of famlly as a resulL of Lhe deaLh, abandonmenL, dlsappearance
or prolonged absence of Lhe parenLs or solo parenL.

A change ln Lhe sLaLus or clrcumsLance of Lhe parenL clalmlng
beneflLs under Lhls AcL, such LhaL he/she ls no longer lefL alone
wlLh Lhe responslblllLy of parenLhood, shall LermlnaLe hls/her
ellglblllLy for Lhese beneflLs.

L.2. CkI1LkIA

kA 8972, Sec. 4. ctltetlo fot 5oppott. - Any solo parenL whose
lncome ln Lhe place of domlclle falls below Lhe poverLy Lhreshold
as seL by Lhe naLlonal Lconomlc and uevelopmenL AuLhorlLy
(nLuA) and sub[ecL Lo Lhe assessmenL of Lhe uSWu worker ln
Lhe area shall be ellglble for asslsLance: ltovlJeJ, bowevet, 1haL
any solo parenL whose lncome ls above Lhe poverLy Lhreshold
shall en[oy Lhe beneflLs menLloned ln SecLlons 6, 7 and 8 of Lhls
AcL.

kA 8972, Sec. 8. loteotol leove. - ln addlLlon Lo leave prlvlleges
under exlsLlng laws, parenLal leave of noL more Lhan seven (7)
worklng days every year shall be granLed Lo any solo parenL
employee who has rendered servlce of aL leasL one (1) year.

Ikk, kA 8972, Art. IV Sec. 7. CrlLerla for SupporL Any solo
parenL whose lncome ln Lhe place of domlclle falls equal Lo or
below Lhe poverLy Lhreshold as seL by Lhe nSC8 and sub[ecL Lo
Lhe assessmenL of Lhe duly appolnLed or deslgnaLed soclal
worker ln Lhe area shall be ellglble for asslsLance: rovlded,
however, 1haL any solo parenL whose lncome ls above Lhe
poverLy Lhreshold shall en[oy Lhe beneflLs menLloned ln SecLlons
16, 17, 18, 19, 20, 21 and 23 of Lhese 8ules. lor purposes of Lhe
AcL and Lhese 8ules, Lhe place of domlclle shall refer Lo Lhe
resldence menLloned ln SecLlon 8(a) of Lhese 8ules.

L.3. UALIIICA1ICNS CI SCLC AkLN1S

kA 8972, Sec. 8. loteotol leove. - ln addlLlon Lo leave prlvlleges
under exlsLlng laws, parenLal leave of noL more Lhan seven (7)
worklng days every year shall be granLed Lo any solo parenL
employee who has rendered servlce of aL leasL one (1) year.

Ikk, kA 8972, Art IV Sec. 8. CuallflcaLlons of Solo arenL A solo
parenL seeklng beneflLs oLher Lhan Lhose provlded for under
SecLlons 16, 17, 18, 19, 20, 21 and 23 of Lhese 8ules shall be
quallfled on Lhe basls of Lhe followlng:

(a) A resldenL of Lhe area where Lhe asslsLance ls soughL, as
cerLlfled by Lhe barangay capLaln, rovlded, LhaL lf Lhe solo
parenL ls a Lransferee from anoLher barangay, he/she ls requlred
Lo secure a clearance from hls/her prevlous barangay, lndlcaLlng
wheLher or noL he/she has avalled of any beneflLs for solo
parenLs, and Lhe naLure of such beneflLs.
(b) WlLh an lncome level equal Lo or below Lhe poverLy
Lhreshold as seL forLh by nSC8 and assessed by a soclal worker
as provlded for under SecLlon 7 of Lhese 8ules.

L. 4. LMLCMLN1-kLLA1LD kIGn1S
AND 8LNLII1S

kA 8972, Sec. 3(d) "arenLal leave" - shall mean leave beneflLs
granLed Lo a solo parenL Lo enable hlm/her Lo perform parenLal
duLles and responslblllLles where physlcal presence ls requlred.

kA 8972, Sec. 3(e) "llexlble work schedule" - ls Lhe rlghL granLed
Lo a solo parenL employee Lo vary hls/her arrlval and deparLure
Llme wlLhouL affecLlng Lhe core work hours as deflned by Lhe
employer.

overLy Lhreshold as of 2013 9,383/ monLh or
312.83/day for a famlly of 3
lood Lhreshold as of 2013 7, 821/ monLh or
260.03 /day for a famlly of 3

L.4.A. ILLkI8LL WCkk SCnLDULL

kA 8972, Sec. 6. llexlble wotk 5cbeJole. - 1he employer shall
provlde for a flexlble worklng schedule for solo parenLs:
rovlded, 1haL Lhe same shall noL affecL lndlvldual and company
producLlvlLy: ltovlJeJ, fottbet, 1haL any employer may requesL
exempLlon from Lhe above requlremenLs from Lhe uCLL on
cerLaln merlLorlous grounds.

Ikk, kA 8972, Art V. Sec. 16. llexlble Work Schedule 1he
employer shall provlde for a flexlble work schedule for solo
parenLs:
rovlded, 1haL Lhe same shall noL affecL lndlvldual and company
producLlvlLy:
rovlded furLher, 1haL any employer may requesL exempLlon
from Lhe above requlremenLs from Lhe uCLL on cerLaln
merlLorlous grounds. ln Lhe case of employees ln Lhe
governmenL servlce, flexlble worklng hours wlll be sub[ecL Lo Lhe
dlscreLlon of Lhe head of Lhe agency. ln no case shall Lhe weekly
worklng hours be reduced ln Lhe evenL Lhe agency adopLs Lhe
flexlble worklng hours schedule formaL (flexl-Llme). ln Lhe
adopLlon of flexl-Llme, Lhe core worklng hours shall be
prescrlbed Laklng lnLo conslderaLlon Lhe needs of Lhe servlce.

L.4.8. WCkk DISCkIMINA1ICN

kA 8972, Sec. 7. wotk ulsctlmlootloo. - no employer shall
dlscrlmlnaLe agalnsL any solo parenL employee wlLh respecL Lo
Lerms and condlLlons of employmenL on accounL of hls/her
sLaLus.

Ikk, kA 8972, Art. V Sec. 17. Work ulscrlmlnaLlon no employer
shall dlscrlmlnaLe agalnsL any solo parenL employee wlLh respecL
Lo Lerms and condlLlons of employmenL on accounL of hls/her
sLaLus.


L. 4. C. LLAVL

kA 98972
Sect|on 8. loteotol leove. - ln addlLlon Lo leave prlvlleges under
exlsLlng laws, parenLal leave of noL more Lhan seven (7) worklng
days every year shall be granLed Lo any solo parenL employee
who has rendered servlce of aL leasL one (1) year.

S. 1kLA1MLN1 CI 8LNLII1, NCN-CUMULA1IVL

Ikk, kA 8972, Art. V. Sec. 18. arenLal Leave ln addlLlon Lo
leave prlvlleges under exlsLlng laws, parenLal leave of noL more
Lhan seven (7) worklng days every year shall be granLed Lo any
solo parenL employee who has rendered servlce of aL leasL one
(1) year. 1he seven-day parenLal leave shall be non-cumulaLlve.

n. VICTIMS LEAVE

1. DLIINI1ICN]CCVLkAGL

kA 9262, Sec. 3. ueflnlLlon of 1erms.- As used ln Lhls AcL, (a)
"vlolence agalnsL women and Lhelr chlldren" refers Lo any acL or
a serles of acLs commlLLed by any person agalnsL a woman who
ls hls wlfe, former wlfe, or agalnsL a woman wlLh whom Lhe
person has or had a sexual or daLlng relaLlonshlp, or wlLh whom
he has a common chlld, or agalnsL her chlld wheLher leglLlmaLe
or llleglLlmaLe, wlLhln or wlLhouL Lhe famlly abode, whlch resulL
ln or ls llkely Lo resulL ln physlcal, sexual, psychologlcal harm or
sufferlng, or economlc abuse lncludlng LhreaLs of such acLs,
baLLery, assaulL, coerclon, harassmenL or arblLrary deprlvaLlon of
llberLy. lL lncludes, buL ls noL llmlLed Lo, Lhe followlng acLs:

A. "hyslcal vlolence" refers Lo acLs LhaL lnclude bodlly or
physlcal harm,
8. "Sexual vlolence" refers Lo an acL whlch ls sexual ln naLure,
commlLLed agalnsL a woman or her chlld. lL lncludes, buL ls noL
llmlLed Lo:

a. rape, sexual harassmenL, acLs of lasclvlousness, LreaLlng a
woman or her chlld as a sex ob[ecL, maklng demeanlng and
sexually suggesLlve remarks, physlcally aLLacklng Lhe sexual parLs
of the victims body, forcing her/him to watch obscene
publlcaLlons and lndecenL shows or forclng Lhe woman or her
chlld Lo do lndecenL acLs and/or make fllms Lhereof, forclng Lhe
wlfe and mlsLress/lover Lo llve ln Lhe con[ugal home or sleep
LogeLher ln Lhe same room wlLh Lhe abuser,
b. acLs causlng or aLLempLlng Lo cause Lhe vlcLlm Lo engage ln
any sexual acLlvlLy by force, LhreaL of force, physlcal or oLher
harm or LhreaL of physlcal or oLher harm or coerclon,
c. rosLlLuLlng Lhe woman or chlld.

C. "sychologlcal vlolence" refers Lo acLs or omlsslons causlng or
llkely Lo cause menLal or emoLlonal sufferlng of Lhe vlcLlm such
as buL noL llmlLed Lo lnLlmldaLlon, harassmenL, sLalklng, damage
Lo properLy, publlc rldlcule or humlllaLlon, repeaLed verbal abuse
and menLal lnfldellLy. lL lncludes causlng or allowlng Lhe vlcLlm
Lo wlLness Lhe physlcal, sexual or psychologlcal abuse of a
member of Lhe famlly Lo whlch Lhe vlcLlm belongs, or Lo wlLness
pornography ln any form or Lo wlLness abuslve ln[ury Lo peLs or
Lo unlawful or unwanLed deprlvaLlon of Lhe rlghL Lo cusLody
and/or vlslLaLlon of common chlldren.
u. "Lconomlc abuse" refers Lo acLs LhaL make or aLLempL Lo
make a woman flnanclally dependenL whlch lncludes, buL ls noL
llmlLed Lo Lhe followlng:

1. wlLhdrawal of flnanclal supporL or prevenLlng Lhe vlcLlm from
engaglng ln any leglLlmaLe professlon, occupaLlon, buslness or
acLlvlLy, excepL ln cases whereln Lhe oLher spouse/parLner
ob[ecLs on valld, serlous and moral grounds as deflned ln ArLlcle
73 of Lhe lamlly Code,
2. deprlvaLlon or LhreaL of deprlvaLlon of flnanclal resources and
Lhe rlghL Lo Lhe use and en[oymenL of Lhe con[ugal, communlLy
or properLy owned ln common,
3. desLroylng household properLy,
4. controlling the victims own money or properties or solely
conLrolllng Lhe con[ugal money or properLles.

(b) "8aLLery" refers Lo an acL of lnfllcLlng physlcal harm upon Lhe
woman or her chlld resulLlng Lo Lhe physlcal and psychologlcal or
emoLlonal dlsLress.
(c) "8aLLered Woman Syndrome" refers Lo a sclenLlflcally deflned
paLLern of psychologlcal and behavloral sympLoms found ln
women llvlng ln baLLerlng relaLlonshlps as a resulL of cumulaLlve
abuse.
(d) "SLalklng" refers Lo an lnLenLlonal acL commlLLed by a person
who, knowlngly and wlLhouL lawful [usLlflcaLlon follows Lhe
woman or her chlld or places Lhe woman or her chlld under
survelllance dlrecLly or lndlrecLly or a comblnaLlon Lhereof.
(e) "uaLlng relaLlonshlp" refers Lo a slLuaLlon whereln Lhe parLles
llve as husband and wlfe wlLhouL Lhe beneflL of marrlage or are
romanLlcally lnvolved over Llme and on a conLlnulng basls durlng
Lhe course of Lhe relaLlonshlp. A casual acqualnLance or ordlnary
soclallzaLlon beLween Lwo lndlvlduals ln a buslness or soclal
conLexL ls noL a daLlng relaLlonshlp.
(f) "Sexual relaLlons" refers Lo a slngle sexual acL whlch may or
may noL resulL ln Lhe bearlng of a common chlld.
(g) "Safe place or shelLer" refers Lo any home or lnsLlLuLlon
malnLalned or managed by Lhe ueparLmenL of Soclal Welfare
and uevelopmenL (uSWu) or by any oLher agency or volunLary
organlzaLlon accredlLed by Lhe uSWu for Lhe purposes of Lhls
AcL or any oLher sulLable place Lhe resldenL of whlch ls wllllng
Lemporarlly Lo recelve Lhe vlcLlm.

(h) "Chlldren" refers Lo Lhose below elghLeen (18) years of age or
older buL are lncapable of Laklng care of Lhemselves as deflned
under 8epubllc AcL no. 7610. As used ln Lhls AcL, lL lncludes Lhe
blologlcal chlldren of Lhe vlcLlm and oLher chlldren under her
care.

2. LN1I1LLMLN1 1C LLAVL

kA, 9262 Sec 43. otltleJ to leove. vlcLlms under Lhls AcL shall
be enLlLled Lo Lake a pald leave of absence up Lo Len (10) days ln
addlLlon Lo oLher pald leaves under Lhe Labor Code and Clvll
Servlce 8ules and 8egulaLlons, exLendlble when Lhe necesslLy
arlses as speclfled ln Lhe proLecLlon order. Any employer who
shall pre[udlce Lhe rlghL of Lhe person under Lhls secLlon shall be
penallzed ln accordance wlLh Lhe provlslons of Lhe Labor Code
and Clvll Servlce 8ules and 8egulaLlons. Llkewlse, an employer
who shall pre[udlce any person for asslsLlng a co-employee who
ls a vlcLlm under Lhls AcL shall llkewlse be llable for
dlscrlmlnaLlon.

Ikk, kA 9262 ku|e VI Sec 42. 1en-day pald leave ln addlLlon Lo
oLher leave beneflLs. - AL any Llme durlng Lhe appllcaLlon of any
proLecLlon order, lnvesLlgaLlon, prosecuLlon and/or Lrlal of Lhe
crlmlnal case, a vlcLlm of vAWC who ls employed shall be
enLlLled Lo a pald leave of up Lo Len (10) days ln addlLlon Lo oLher
pald leaves under Lhe Labor Code and Clvll Servlce 8ules and
8egulaLlons and oLher exlsLlng laws and company pollcles,
exLendlble when Lhe necesslLy arlses as speclfled ln Lhe
proLecLlon order.
1he unong 8arangay/kagawad or prosecuLor or Lhe Clerk of
CourL, as Lhe case may be, shall lssue a cerLlflcaLlon aL no cosL Lo
Lhe woman LhaL such an acLlon ls pendlng, and Lhls ls all LhaL ls
requlred for Lhe employer Lo comply wlLh Lhe 10-day pald leave.
lor governmenL employees, ln addlLlon Lo Lhe aforemenLloned
cerLlflcaLlon, Lhe employee concerned musL flle an appllcaLlon
for leave clLlng as basls 8.A. 9262. 1he admlnlsLraLlve
enforcemenL of Lhls leave enLlLlemenL shall be consldered wlLhln
Lhe [urlsdlcLlon of Lhe 8eglonal ulrecLor of Lhe uCLL under
ArLlcle 129 of Lhe Labor Code of Lhe hlllpplnes, as amended, for
employees ln Lhe prlvaLe secLor, and Lhe Clvll Servlce
Commlsslon, for governmenL employees.
1he avallmenL of Lhe Len day-leave shall be aL Lhe opLlon of Lhe
woman employee, whlch shall cover Lhe days LhaL she has Lo
aLLend Lo medlcal and legal concerns. Leaves noL avalled of are
noncumulaLlve and noL converLlble Lo cash.
1he employer/agency head who denles Lhe appllcaLlon for leave,
and who shall pre[udlce Lhe vlcLlm-survlvor or any person for
asslsLlng a co-employee who ls a vlcLlm-survlvor under Lhe AcL
shall be held llable for dlscrlmlnaLlon and vlolaLlon of 8.A 9262.
1he provlslon of Lhe Labor Code and Lhe Clvll Servlce 8ules and
8egulaLlons shall govern Lhe penalLy Lo be lmposed on Lhe sald
employer/agency head.
I. SLCIAL LLAVL 8LNLII1S ICk WCMLN

Covered emp|oyees: kA 9710, Sec. 18. E9.'$07 /.0=. W.*.,$(%
,)# A)4.*. - A woman employee havlng rendered conLlnuous
aggregaLe employmenL servlce of aL leasL slx (6) monLhs for Lhe
lasL Lwelve (12) monLhs shall be enLlLled Lo a speclal leave
beneflL of Lwo (2) monLhs wlLh full pay based on her gross
monLhly compensaLlon followlng surgery caused by
gynecologlcal dlsorders.

I. SLkVICL CnAkGLS

LC, 96. 5etvlce cbotqes. - All servlce charges collecLed by hoLels,
resLauranLs and slmllar esLabllshmenLs shall be dlsLrlbuLed aL Lhe
raLe of elghLy-flve percenL (83) for all covered employees and
flfLeen percenL (13) for managemenL. 1he share of Lhe
employees shall be equally dlsLrlbuLed among Lhem. ln case Lhe
servlce charge ls abollshed, Lhe share of Lhe covered employees
shall be consldered lnLegraLed ln Lhelr wages.

Ck, 8ook III ku|e VI Sec. 1. Coverage. 1hls rule shall apply
only Lo esLabllshmenLs collecLlng servlce charges such as hoLels,
resLauranLs, lodglng houses, nlghL clubs, cockLall lounge,
massage cllnlcs, bars, caslnos and gambllng houses, and slmllar
enLerprlses, lncludlng Lhose enLlLles operaLlng prlmarlly as
prlvaLe subsldlarles of Lhe CovernmenL.

Ck, 8ook III ku|e VI Sec. 2. Lmployees covered. 1hls rule shall
apply Lo all employees of covered employers, regardless of Lhelr
poslLlons, deslgnaLlons or employmenL sLaLus, and lrrespecLlve
of Lhe meLhod by whlch Lhelr wages are pald excepL Lo
managerlal employees. As used hereln, a "managerlal
employee" shall mean one who ls vesLed wlLh powers or
prerogaLlves Lo lay down and execuLe managemenL pollcles
and/or Lo hlre, Lransfer, suspend, lay-off, recall, dlscharge,
asslgn, or dlsclpllne employees or Lo effecLlvely recommend
such managerlal acLlons. All employees noL falllng wlLhln Lhls
deflnlLlon shall be consldered rank-and-flle employees.

Ck, 8ook III ku|e VI Sec. 3. ulsLrlbuLlon of servlce charges. All
servlce charges collecLed by covered employers shall be
dlsLrlbuLed aL Lhe raLe of 83 for Lhe employees and 13 for Lhe
managemenL. 1he 83 shall be dlsLrlbuLed equally among Lhe
covered employees. 1he 13 shall be for Lhe dlsposlLlon by
managemenL Lo answer for losses and breakages and
dlsLrlbuLlon Lo managerlal employees aL Lhe dlscreLlon of Lhe
managemenL ln Lhe laLLer case.

Ck, 8ook III ku|e VI Sec. 4. lrequency of dlsLrlbuLlon. 1he
shares referred Lo hereln shall be dlsLrlbuLed and pald Lo Lhe
employees noL less Lhan once every Lwo (2) weeks or Lwlce a
monLh aL lnLervals noL exceedlng slxLeen (16) days.

Ck, 8ook III ku|e VI Sec. S. lnLegraLlon of servlce charges. ln
case Lhe servlce charges ls abollshed Lhe share of covered
employees shall be consldered lnLegraLed ln Lhelr wages. 1he
basls of Lhe amounL Lo be lnLegraLed shall be Lhe average
monLhly share of each employee for Lhe pasL Lwelve (12) monLhs
lmmedlaLely precedlng Lhe abollLlon of wlLhdrawal of such
charges.

Ck, 8ook III ku|e VI Sec. 6. 8elaLlon Lo agreemenLs. noLhlng
ln Lhls 8ule shall prevenL Lhe employer and hls employees from
enLerlng lnLo any agreemenL wlLh Lerms more favorable Lo Lhe
employees Lhan Lhose provlded hereln, or be used Lo dlmlnlsh
any beneflL granLed Lo Lhe employees under exlsLlng laws,
agreemenL and volunLary employer pracLlce.

Ck, 8ook III ku|e VI Sec. 7. 1hls rule shall be wlLhouL pre[udlce
Lo exlsLlng, fuLure collecLlve bargalnlng agreemenLs. noLhlng ln
Lhls rule shall be consLrued Lo [usLlfy Lhe reducLlon or dlmlnuLlon
of any beneflL belng en[oyed by any employee aL Lhe Llme of
effecLlvlLy of Lhls rule.

nILIINL nC1LLILkS INC V NUWnkAIN (2009)
l: WC 9 Look effecL granLlng LCCLA Lo Lhose wlLh salary from
230-290. Dusit didnt comply while it was undergoing
compulsory arblLraLlon for a new C8A.
P: SC held LhaL C8A reLroacLlvely lncreased salarles, Lhus some
employees dld noL quallfy for LCCLA. Moreover, servlce charges
were held Lo be dlsLlncL from LCCLA, so Dusits contention that
Lhey need noL pay Lhe LCCLA because Lhey gave Lhe servlce
charges Lo Lhe employees has no merlL.
k.NCN-DIMINU1ICN CI 8LNLII1S

LC, 100. ltoblbltloo oqolost ellmlootloo ot Jlmlootloo of beoeflts.
- noLhlng ln Lhls 8ook shall be consLrued Lo ellmlnaLe or ln any
way dlmlnlsh supplemenLs, or oLher employee beneflLs belng
en[oyed aL Lhe Llme of promulgaLlon of Lhls Code.

ML1kCCLI1AN 8ANk V NLkC (2009)

l: 8espondenLs were employees of MeLrobank who reLlred.
AfLer Lhey reLlred, a new memorandum was passed lncreaslng
Lhe raLe of reLlremenL beneflLs from 183 Lo 200. Powever,
only employees who were sLlll employed were allowed Lo avall
of Lhe lmproved beneflLs. 8espondenLs now demand paymenL of
unpald beneflLs uslng Lhe lncreased raLes.

H: SC said that it was Metrobanks company practice for 11 years
Lo glve lmproved beneflLs reLroacLlvely Lo Lhe year Lhe
memorandum was lssued. lmposlng Lhe new condlLlon vlolaLed
Lhe splrlL of ArL. 100 of Lhe LC and effecLlvely reduced Lhe
employees beneflLs.


S. MINIMUM WAGLS AND
WAGL IIkING MACnINLk

A. MINIMUM WAGLS

LC, 99. keqloool mlolmom woqes. - 1he mlnlmum wage raLes for
agrlculLural and non-agrlculLural employees and workers ln each
and every reglon of Lhe counLry shall be Lhose prescrlbed by Lhe
8eglonal 1rlparLlLe Wages and roducLlvlLy 8oards.

A.1. GLNLkAL kINCILLS

a. Llvlng wage lncludes all beneflLs
b. no work no pay - whaL ls lmporLanL ls: Lhe rendlLlon of
servlces
c. Lqual pay for equal value - Lven lf employees have
dlfferences, lf Lhey have Lhe same work and same
work load, Lhey should have Lhe same wage
d. Form: even if the contract says no wage /
remuneration if it can be proven otherwise, then the
laLLer shall prevall.

A. kIGn1 1C A LIVING WAGL

1987 Const. Art. kIII, Sec. 3 (2) and (4)
(3) lL shall guaranLee Lhe rlghLs of all workers Lo self-
organlzaLlon, collecLlve bargalnlng and negoLlaLlons, and
peaceful concerLed acLlvlLles, lncludlng Lhe rlghL Lo sLrlke ln
accordance wlLh law. 1hey shall be enLlLled Lo securlLy of Lenure,
humane condlLlons of work, and a llvlng wage. 1hey shall also
parLlclpaLe ln pollcy and declslon-maklng processes affecLlng
Lhelr rlghLs and beneflLs as may be provlded by law.
(4) 1he SLaLe shall regulaLe Lhe relaLlons beLween workers and
employers, recognlzlng Lhe rlghL of labor Lo lLs [usL share ln Lhe
frulLs of producLlon and Lhe rlghL of enLerprlses Lo reasonable
reLurns Lo lnvesLmenLs, and Lo expanslon and growLh.

8. NC WCkk, NC A]A FAIR DAYS
WAGE FOR A FAIR DAYS LA8Ck

SUGUL V 1kIUMn IN1LkNA1ICNAL (2009)
l: vlrglnla and 8enaLo worked for 1rlumph and laLer flled a
complalnL for non-paymenL of unpald vacaLlon and slck leave
credlLs, blrLhday leave and 13
Lh
monLh pay. 1o aLLend Lhe
prellmlnary conference of Lhe case, Lhey mlssed offlce hours and
used Lhe company car whlch was charged agalnsL Lhelr vacaLlon
leave.
P: Laborers who volunLarlly absenL Lhemselves from work Lo
aLLend Lhe hearlng of a case ln whlch Lhey seek Lo prove and
esLabllsh Lhelr demands agalnsL Lhe company, Lhe legallLy and
proprleLy of whlch demands ls noL yeL known, should lose Lhelr
pay durlng Lhe perlod of such absence from work. 1he age old
rule governlng Lhe relaLlon beLween labor and caplLal or
managemenL and employee ls LhaL a "falr day's wage for a falr
day's labor."
AkLLCC VS NLkC (2000)
l: AkLLCC Lemporarlly Lransferred Lhelr offlce Lo Amon 1heaLre,
Aklan. Ma[orlLy of lLs employees worked ln Lhe old offlce
noneLheless. A ma[orlLy resoluLlon was passed Lransferrlng Lhe
offlce back Lo Lhe old one. ComplalnanLs who reporLed for work
ln Lhe old offlce desplLe Lhe move Lo Aklan were noL pald Lhelr
salarles.
P: no work, no pay. Lmployees are noL enLlLled Lo Lhelr salarles.
lf Lhere ls no work rendered by Lhe laborer, Lhere can be no pay
glven Lo hlm.
C. LUAL A ICk WCkk CI LUAL
VALUL

IN1LkNA1ICNAL SCnCCL ALLIANCL CI LDUC VS SLC.
UISUM8ING SUkA
D. ICkM: AGkLLMLN1 ICk
CCMLNSA1ICN CI SLkVICLS

LLGLND nC1LL VS nLkNANI kLALUC SUkA
LC, 97(f). "woqe" pald Lo any employee shall mean Lhe
remuneraLlon or earnlngs, however deslgnaLed, capable of belng
expressed ln Lerms of money, wheLher flxed or ascerLalned on a
Llme, Lask, plece, or commlsslon basls, or oLher meLhod of
calculaLlng Lhe same, whlch ls payable by an employer Lo an
employee ooJet o wtltteo ot oowtltteo coottoct of employmeot
fot wotk Jooe ot to be Jooe, ot fot setvlces teoJeteJ ot to be
teoJeteJand lncludes Lhe falr and reasonable value, as
deLermlned by Lhe SecreLary of Labor and LmploymenL, of
board, lodglng, or oLher faclllLles cusLomarlly furnlshed by Lhe
employer Lo Lhe employee.

"lolt ooJ teosoooble voloe" shall noL lnclude any proflL Lo Lhe
employer, or Lo any person afflllaLed wlLh Lhe employer.


L. LkLM1ICN IkCM INCCML 1Ak

kA 9S04. xxx provided, That minimum wage earners as defined
ln SecLlon 22(PP) of Lhls Code shall be exempL from Lhe
paymenL of lncome Lax on Lhelr Laxable lncome: rovlded,
furLher, 1haL Lhe hollday pay, overLlme pay, nlghL shlfL
dlfferenLlal pay and hazard pay recelved by such mlnlmum wage
earners shall llkewlse be exempL from income tax.

A.2. CCVLkAGL

LC, 97(b). "mployet" lncludes any person acLlng dlrecLly or
lndlrecLly ln Lhe lnLeresL of an employer ln relaLlon Lo an
employee and shall lnclude Lhe governmenL and all lLs branches,
subdlvlslons and lnsLrumenLallLles, all governmenL-owned or
conLrolled corporaLlons and lnsLlLuLlons, as well as non-proflL
prlvaLe lnsLlLuLlons, or organlzaLlons.

LC, 97(c). "mployee" lncludes any lndlvldual employed by an
employer.

LC, 97(e). "mploy" lncludes Lo suffer or permlL Lo work..

LC, 98. 1hls 1lLle shall noL apply Lo farm Lenancy or leasehold,
domesLlc servlce and persons worklng ln Lhelr respecLlve homes
ln needle work or ln any coLLage lndusLry duly reglsLered ln
accordance wlLh law.

nILIINL IISnLkILS DLVLLCMLN1 AU1nCkI1 VS
NLkC (1992)
l: SecurlLy guards worklng for luA Lo ad[usL Lhe conLracL raLe ln
accordance wlLh Lhe laLesL wage order. lmporLanL provlslon ln
Lhe sald order was LhaL lncreases ln Lhe wage were Lo be borne
by Lhe prlnclpal. Labor arblLer dlsmlssed Lhe complalnL, saylng
LhaL [urlsdlcLlon was under Lhe CSC.
P: ConLracL enLered lnLo wlLh Lhe securlLy guards was merely [ob
conLracLlng wlLh luA belng Lhe lndlrecL employer Lhus Lhe
nL8C had [urlsdlcLlon. luA should carry Lhe burden of Lhe wage
lncrease.
3. MINIMUM WAGL

WhaL ls Lhe prevalllng law on nC8 Mlnlmum wage
rlvaLe secLor wage order #17
ubllc secLor salary sLandardlzaLlon law

LC, 99. keqloool mlolmom woqes. - 1he mlnlmum wage raLes for
agrlculLural and non-agrlculLural employees and workers ln each
and every reglon of Lhe counLry shall be Lhose prescrlbed by Lhe
8eglonal 1rlparLlLe Wages and roducLlvlLy 8oards

LC, 97(f). "woqe" pald Lo any employee shall mean Lhe
remuneraLlon or earnlngs, however deslgnaLed, capable of belng
expressed ln Lerms of money, wheLher flxed or ascerLalned on a
Llme, Lask, plece, or commlsslon basls, or oLher meLhod of
calculaLlng Lhe same, whlch ls payable by an employer Lo an
employee under a wrlLLen or unwrlLLen conLracL of employmenL
for work done or Lo be done, or for servlces rendered or Lo be
rendered and lncludes Lhe falr and reasonable value, as
deLermlned by Lhe SecreLary of Labor and LmploymenL, of
board, lodglng, or oLher faclllLles cusLomarlly furnlshed by Lhe
employer Lo Lhe employee.

"lolt ooJ teosoooble voloe" shall noL lnclude any proflL Lo Lhe
employer, or Lo any person afflllaLed wlLh Lhe employer.

LC, 61. cooteots of oppteotlcesblp oqteemeots. - ApprenLlceshlp
agreemenLs, lncludlng Lhe wage raLes of apprenLlces, shall
conform Lo Lhe rules lssued by Lhe SecreLary of Labor and
LmploymenL.

1he perlod of apprenLlceshlp shall noL exceed slx monLhs.
ApprenLlceshlp agreemenLs provldlng for wage raLes below Lhe
legal mlnlmum wage, whlch ln no case shall sLarL below 73
percenL of Lhe appllcable mlnlmum wage, may be enLered lnLo
only ln accordance wlLh apprenLlceshlp programs duly approved
by Lhe SecreLary of Labor and LmploymenL. 1he ueparLmenL
shall develop sLandard model programs of apprenLlceshlp.

LC, 7S(c). leotoetsblp oqteemeot. - Any employer deslrlng Lo
employ learners shall enLer lnLo a learnershlp agreemenL wlLh
Lhem, whlch agreemenL shall lnclude: 1he wages or salary raLes
of Lhe learners whlch shall begln aL noL less Lhan sevenLy-flve
percenL (73) of Lhe appllcable mlnlmum wage

LC, 80(b). mploymeot oqteemeot. - Any employer who employs
handlcapped workers shall enLer lnLo an employmenL
agreemenL wlLh Lhem, whlch agreemenL shall lnclude: 1he raLe
Lo be pald Lhe handlcapped workers whlch shall noL be less Lhan
sevenLy flve (73) percenL of Lhe appllcable legal mlnlmum
wage


kA 7323, Sec. 2. SlxLy per cenLum (60) of sald salary or wage
shall be pald by Lhe employer ln cash and forLy per cenLum
(40) by Lhe CovernmenL ln Lhe form of a voucher whlch shall
be appllcable ln Lhe paymenL for hls LulLlon fees and books ln
any educaLlonal lnsLlLuLlon for secondary, LerLlary, vocaLlonal or
Lechnologlcal educaLlon. 1he amounL of Lhe educaLlon voucher
shall be pald by Lhe CovernmenL Lo Lhe educaLlonal lnsLlLuLlon
concerned wlLhln LhlrLy (30) days from lLs presenLaLlon Lo Lhe
offlcer or agency deslgnaLed by Lhe SecreLary of llnance. 1he
voucher shall noL be Lransferable excepL when Lhe payee Lhereof
dles or for a [usLlflable cause sLops ln hls duLles ln whlch case lL
can be Lransferred Lo hls broLhers or slsLers. lf Lhere be none,
Lhe amounL Lhereof shall be pald hls helrs or Lo Lhe payee
hlmself, as Lhe case may be.

Ck, 8ook III ku|e VII Sec. 4. When Wage lncrease uue CLher
Workers.
a) All workers and employees who, prlor Lo !uly 1, 1989, were
already recelvlng a baslc wage above Lhe sLaLuLory mlnlmum
wage raLes provlded under 8epubllc AcL 6640 buL noL over
100.00 per day shall recelve a wage lncrease equlvalenL Lo LhaL
provlded ln Lhe precedlng SecLlon.

b) 1hose recelvlng noL more Lhan Lhe followlng monLhly baslc
wage raLes prlor Lo !uly 1, 1989 shall be deemed covered by Lhe
precedlng subsecLlon:
(l) 3,237.30 where Lhe workers and employees work
everyday, lncludlng premlum paymenLs for Sundays or resL days,
speclal days and regular holldays.
(ll) 3,041.67 where Lhe workers and employees do noL work
buL consldered pald on resL days, speclal days and regular
holldays.
(lll) 2,616.67 where Lhe workers and employees do noL
work and are noL consldered pald on Sundays or resL days.
(lv) 2,183.33 where Lhe workers and employees do noL work
and are noL consldered pald on SaLurdays and Sundays or resL
days.

c) Workers and employees who, prlor Lo !uly 1, 1989, were
recelvlng a baslc wage of more Lhan 100.00 per day or lLs
monLhly equlvalenL, are noL by law enLlLled Lo Lhe wage lncrease
provlded under Lhe AcL. 1hey may however, recelve wage
lncreases Lhrough Lhe correcLlon of wage dlsLorLlons ln
accordance wlLh SecLlon 16, ChapLer l of Lhese 8ules.

Ck, 8ook III ku|e VII Sec. 7. 8asls of Mlnlmum Wages 8aLes.
1he sLaLuLory mlnlmum wage rules prescrlbed under Lhe AcL
shall be for Lhe normal worklng hours, whlch shall noL exceed
elghL hours work a day.
a. ueLermlnaLlon of compllance wlLh mlnlmum wage
IkAN VS NLkC (1998)
l: AnLonlo lran ls a sofLdrlnk merchanL who employs prlvaLe
respondenLs. As parL of Lhelr compensaLlon, prlvaLe respondenLs
recelve commlsslons per case of sofLdrlnks sold. rlvaLe
respondenLs sLopped reporLlng for work so lran flled complalnL
for esLafa agalnsL Lhem whlch was counLered by a clalm by Lhe
respondenLs for lllegal dlsmlssal, among oLhers. Labor ArblLer
ruled LhaL AnLonlo dld noL comply wlLh mlnlmum wage
requlremenLs ln compensaLlng Lhe respondenLs.

P: Commlsslons are lncluded ln deLermlnlng compllance wlLh
Lhe mlnlmum wage requlremenL. ArL 97 of Lhe Labor Code
defines wages as the remuneration or earnings, however
deslgnaLed, capable of belng expressed ln Lerms of money,
wheLher flxed or ascerLalned on a Llme, Lask, plece or
commission basis...

8. IACILI1ILS AND
SULLMLN1S]ALLCWANCLS

Ck, 8ook III ku|e VII-A Sec. S. laclllLles the term facilities as
used ln Lhls 8ule shall lnclude arLlcles or servlces for Lhe beneflL
of Lhe employee or hls famlly buL shall noL lnclude Lools of Lhe
Lrade or arLlcles or servlce prlmarlly for Lhe beneflL of Lhe
employer or necessary to the conduct of the employers
buslness.

laclllLles SupplemenLs
Who beneflLs? Worker Lmployer
arL of wage? yes no addlLlon Lo wage /
exLra
ueducLlble from
Lhe wage?
?es no
Lxamples Meals, board
and lodglng

MILLAkLS VS NLkC AND ICC (1999)
l: lCC suffered a flnanclal seLback whlch caused Lhem Lo
reLrench Lhe servlces of some employees. eLlLloners were
enLlLled Lo separaLlon pay buL Lhey wanLed Lhe allowances Lhey
were enLlLled Lo Lo be parL of Lhe compuLaLlon.
H: Allowances are NOT included in the term wage.

SLL VS NLkC (2011)
l: rlvaLe respondenLs flled a complalnL for lllegal dlsmlssal, non
paymenL of wages, eLc afLer Lhey were Lold by Sonny, Lhe man
who hlred Lhem, LhaL Lhey could noL work overLlme, afLer whlch
Lhey lefL work.
H: Private respondents were underpaid. The facilities which
Lhey goL ouL of work, such as board and lodglng, waLer and food
en[oyed by Lhem could noL be compuLed agalnsL Lhelr wages
because Lhls was done wlLhouL Lhelr consenL.

C. CASn WAGL]CCMMISSICN

Ck, 8ook III ku|e VII-A Sec. 4. Cash Wage Lhe mlnlmum wage
raLes prescrlbed ln SecLlon 1 hereof shall be baslc, cash wages
wlLhouL deducLlng Lherefrom whaLever beneflLs, supplemenLs or
allowances whlch Lhe employees en[oy free of charge aslde from
Lhe baslc pay. An employer may provlde subsldlzed meals and
snacks Lo hls employees provlded LhaL Lhe subsldy shall noL be
less Lhan 30 of Lhe falr and reasonable value of such faclllLles.
ln such a case, Lhe employer may deducL from Lhe wages of Lhe
employees noL more Lhan 70 of Lhe value of Lhe meals and
snacks en[oyed by Lhe employees, provlded LhaL such deducLlon
ls wlLhln Lhe wrlLLen auLhorlzaLlon of Lhe employees concerned.

SCNGCC VS NLkC (1990)
l: Songco eL al work for Zuelllg. Zuelllg soughL an appllcaLlon for
clearance Lo LermlnaLe Lhelr servlces on Lhe ground of
reLrenchmenL. Songco eL al lnlLlally opposed buL now Lhey
conLesL Lhe compuLaLlon of Lhe separaLlon pay, conLendlng LhaL
commlsslons should be lncluded.

P: Larned sales commlsslons and allowances should be
compuLed wlLh Lhe salary pay for purposes of compuLLlng Lhe
separation pay. If Court adopts Zuelligs contention that
commlsslons do noL form parL of wages, Lhen ln effecL, salesmen
who do noL have a baslc salary wlll noL be enLlLled Lo separaLlon
pay. Such narrow lnLerpreLaLlon ls noL ln accord wlLh Lhe llberal
splrlL of labor law.

8CIL 1AkLDA VS DLLA SLkNA (1993)
l: 8ole 1akeda and hll lu[l xerox were assessed Lo have
underpaid their employees 13th month pay. In their
computation, the commissions werent included.

P: l88 unduly expanded Lhe concepL of baslc salary. 8aslc salary
ls Lhe raLe of pay for sLandard work excluslve of addlLlonal
paymenLs.

nIL DULICA1CkS VS NLkC (199S)
l: hlllpplne uupllcaLors was ordered by Lhe courL Lo pay 13Lh
monLh pay of prlvaLe respondenLs compuLed on Lhe basls of
Lhelr flxed wages lnCLuulnC sales commlsslons.

P: Commlsslons are an lmporLanL parL of a workers pay. 1he
declslon ln Lhe case of 8ole 1akeda cannoL serve as a precedenL
under sLare declsls under Lhls case.

D. GkA1UI1 AND SALAk]WAGLS,
DIIILkLNCL

LAS1IC 1CWN CLN1Lk VS NLkC (1989)
l: nLM-kaLlpunan flled a complalnL agalnsL lasLlc 1own,
clalmlng LhaL Lhe laLLer engaged ln unfalr labor pracLlce when lL
vlolaLed Lhe C8A by only paylng 26 days worLh as belng
equlvalenL Lo 1 monLh graLulLy pay, lnsLead of 30 days worLh
P: lasLlc 1own musL pay Lhe workers salary graLulLles
equlvalenL Lo 30 days. C8A, as regards graLulLles, conLempaLes
noL paymenL for days buL raLher equlvalenL Lo 30 days. CraLulLy
ls noL lnLended Lo pay worker for acLual servlces bL raLher Lo
reward Lhe employees who render saLlsfacLory servlce Lo Lhe
company.
L. LIILC1 CN 8LNLII1S

LC, 100. ltoblbltloo oqolost ellmlootloo ot Jlmlootloo of beoeflts.
- noLhlng ln Lhls 8ook shall be consLrued Lo ellmlnaLe or ln any
way dlmlnlsh supplemenLs, or oLher employee beneflLs belng
en[oyed aL Lhe Llme of promulgaLlon of Lhls Code.

DAVAC IkUI1S CCkCkA1ICN VS ASSCCIA1LD LA8Ck
UNICN (1993)
l: unlon seeks Lo recover from ulC Lhe 13Lh monLh pay of lLs
rank and flle employees equlvalenL Lo Lhelr slck, vacaLlon, and
maLernlLy leaves, premlum work done on resL days and holldays,
and pay for regular holldays for 1982 ln dlsregard for of
company pracLlce. ulC clalms LhaL lL was only erroneously
lncluded prlor Lo 1982 upon a dlfflculL quesLlon of law.

P: A company pracLlce favorable Lo Lhe employees had already
been esLabllshed, and Lhe paymenLs ouL of lL beneflLLed Lhe
employees. 1hus, any beneflL LhaL has redounded Lo Lhe
employees cannoL be reduced, dlmlnlshed, dlsconLlnued or
ellmlnaLed by Lhe employer.

8. WAGL IIkING MACnINLk

We have 1 commlsslon and 17 boards


8.1. kA1ICNALL ICk WAGL kA1ICNALI2A1ICN

kA 6727, Sec. 2. lL ls hereby declared Lhe pollcy of Lhe SLaLe Lo
raLlonallze Lhe flxlng of mlnlmum wages and Lo promoLe
producLlvlLy-lmprovemenL and galn-sharlng measures Lo ensure
a decenL sLandard of llvlng for Lhe workers and Lhelr famllles, Lo
guaranLee Lhe rlghLs of labor Lo lLs [usL share ln Lhe frulLs of
producLlon, Lo enhance employmenL generaLlon ln Lhe
counLryslde Lhrough lndusLry dlspersal, and Lo allow buslness
and lndusLry reasonable reLurns on lnvesLmenL, expanslon and
growLh.

8.2. AGLNCILS IN WAGL IIkING MACnINLk
8.2.A. NA1ICNAL WAGLS AND
kCDUC1IVI1 CCMMISSICN

kA 6727, Sec. 3. ln llne wlLh Lhe declared pollcy under Lhls AcL,
ArLlcle 99 of resldenLlal uecree no. 442, as amended, ls hereby
amended and ArLlcles 120, 121, 122, 123, 124, 126 and 127 are
hereby lncorporaLed lnLo resldenLlal uecree no. 442, as
amended.

LC, 120. cteotloo of Notloool woqes ooJ ltoJoctlvlty
commlssloo. - 1here ls hereby creaLed a naLlonal Wages and
roducLlvlLy Commlsslon, herelnafLer referred Lo as Lhe
Commlsslon, whlch shall be aLLached Lo Lhe ueparLmenL of
Labor and LmploymenL (uCLL) for pollcy and program
coordlnaLlon

LC, 121. lowets ooJ fooctloos of tbe commlssloo. - 1he
Commlsslon shall have Lhe followlng powers and funcLlons:

(a) 1o acL as Lhe naLlonal consulLaLlve and advlsory body Lo Lhe
resldenL of Lhe hlllpplnes and Congress on maLLers relaLlng Lo
wages, lncomes and producLlvlLy,
(b) 1o formulaLe pollcles and guldellnes on wages, lncomes and
producLlvlLy lmprovemenL aL Lhe enLerprlse, lndusLry and
naLlonal levels,
(c) 1o prescrlbe rules and guldellnes for Lhe deLermlnaLlon of
approprlaLe mlnlmum wage and producLlvlLy measures aL Lhe
reglonal, provlnclal, or lndusLry levels,
(d) 1o revlew reglonal wage levels seL by Lhe 8eglonal 1rlparLlLe
Wages and roducLlvlLy 8oards Lo deLermlne lf Lhese are ln
accordance wlLh prescrlbed guldellnes and naLlonal
developmenL plans,
(e) 1o underLake sLudles, researches and surveys necessary for
Lhe aLLalnmenL of lLs funcLlons and ob[ecLlves, and Lo collecL and
complle daLa and perlodlcally dlssemlnaLe lnformaLlon on wages
and producLlvlLy and oLher relaLed lnformaLlon, lncludlng, buL
noL llmlLed Lo, employmenL, cosL-of-llvlng, labor cosLs,
lnvesLmenLs and reLurns,
(f) 1o revlew plans and programs of Lhe 8eglonal 1rlparLlLe
Wages and roducLlvlLy 8oards Lo deLermlne wheLher Lhese are
conslsLenL wlLh naLlonal developmenL plans,
(g) 1o exerclse Lechnlcal and admlnlsLraLlve supervlslon over Lhe
8eglonal 1rlparLlLe Wages and roducLlvlLy 8oards,
(h) 1o call, from Llme Lo Llme, a naLlonal LrlparLlLe conference of
represenLaLlves of governmenL, workers and employers for Lhe
conslderaLlon of measures Lo promoLe wage raLlonallzaLlon and
producLlvlLy, and
(l) 1o exerclse such powers and funcLlons as may be necessary Lo
lmplemenL Lhls AcL.

1he Commlsslon shall be composed of Lhe SecreLary of Labor
and LmploymenL as ex-offlclo chalrman, Lhe ulrecLor-Ceneral of
Lhe naLlonal Lconomlc and uevelopmenL AuLhorlLy (nLuA) as
ex-offlclo vlce-chalrman, and Lwo (2) members each from
workers and employers sectors who shall be appointed by the
resldenL of Lhe hlllpplnes upon recommendaLlon of Lhe
SecreLary of Labor and LmploymenL Lo be made on Lhe basls of
Lhe llsL of nomlnees submlLLed by Lhe workers and employers
secLors, respecLlvely, and who shall serve for a Lerm of flve (3)
years.

1he LxecuLlve ulrecLor of Lhe Commlsslon shall also be a
member of Lhe Commlsslon. 1he Commlsslon shall be asslsLed
by a SecreLarlaL Lo be headed by an LxecuLlve ulrecLor and Lwo
(2) uepuLy ulrecLors, who shall be appolnLed by Lhe resldenL of
Lhe hlllpplnes, upon Lhe recommendaLlon of Lhe SecreLary of
Labor and LmploymenL.

1he LxecuLlve ulrecLor shall have Lhe same rank, salary, beneflLs
and oLher emolumenLs as LhaL of a ueparLmenL AsslsLanL
SecreLary, whlle Lhe uepuLy ulrecLors shall have Lhe same rank,
salary, beneflLs and oLher emolumenLs as LhaL of a 8ureau
ulrecLor. 1he members of Lhe Commlsslon represenLlng labor
and managemenL shall have Lhe same rank, emolumenLs,
allowances and oLher beneflLs as Lhose prescrlbed by law for
labor and management representatives in the Employees
CompensaLlon Commlsslon

LC, 126. ltoblbltloo oqolost lojooctloo. no prellmlnary or
permanenL ln[uncLlon or Lemporary resLralnlng order may be
lssued by any courL, Lrlbunal or oLher enLlLy agalnsL any
proceedlngs before Lhe Commlsslon or Lhe 8eglonal 8oards


8.2.8. kLGICNAL 1kIAk1I1L WAGLS
AND kCDUC1IVI1 8CAkD

LC, 122. cteotloo of keqloool 1tlpottlte woqes ooJ ltoJoctlvlty
8ootJs. - 1here ls hereby creaLed 8eglonal 1rlparLlLe Wages and
roducLlvlLy 8oards, herelnafLer referred Lo as 8eglonal 8oards,
ln all reglons, lncludlng auLonomous reglons as may be
esLabllshed by law.
1he Commlsslon shall deLermlne Lhe offlces/headquarLers of Lhe
respecLlve 8eglonal 8oards. 1he 8eglonal 8oards shall have Lhe
followlng powers and funcLlons ln Lhelr respecLlve LerrlLorlal
[urlsdlcLlons:

(a) 1o develop plans, programs and pro[ecLs relaLlve Lo wages,
lncomes and producLlvlLy lmprovemenL for Lhelr respecLlve
reglons,
(b) 1o deLermlne and flx mlnlmum wage raLes appllcable ln Lhelr
reglons, provlnces or lndusLrles Lhereln and Lo lssue Lhe
correspondlng wage orders, sub[ecL Lo guldellnes lssued by Lhe
Commlsslon,
(c) 1o underLake sLudles, researches, and surveys necessary for
Lhe aLLalnmenL of Lhelr funcLlons, ob[ecLlves and programs, and
Lo collecL and complle daLa on wages, lncomes, producLlvlLy and
oLher relaLed lnformaLlon and perlodlcally dlssemlnaLe Lhe
same,
(d) 1o coordlnaLe wlLh Lhe oLher 8eglonal 8oards as may be
necessary Lo aLLaln Lhe pollcy and lnLenLlon of Lhls Code,
(e) 1o recelve, process and acL on appllcaLlons for exempLlon
from prescrlbed wage raLes as may be provlded by law or any
Wage Crder, and
(f) 1o exerclse such oLher powers and funcLlons as may be
necessary Lo carry ouL Lhelr mandaLe under Lhls Code.

lmplemenLaLlon of Lhe plans, programs, and pro[ecLs of Lhe
8eglonal 8oards referred Lo ln Lhe second paragraph, leLLer (a)
of Lhls ArLlcle, shall be Lhrough Lhe respecLlve reglonal offlces of
Lhe ueparLmenL of Labor and LmploymenL wlLhln Lhelr LerrlLorlal
[urlsdlcLlon,

ltovlJeJ, bowevet, 1haL Lhe 8eglonal 8oards shall have Lechnlcal
supervlslon over Lhe reglonal offlce of Lhe ueparLmenL of Labor
and LmploymenL wlLh respecL Lo Lhe lmplemenLaLlon of sald
plans, programs and pro[ecLs. Lach 8eglonal 8oard shall be
composed of Lhe 8eglonal ulrecLor of Lhe ueparLmenL of Labor
and LmploymenL as chalrman, Lhe 8eglonal ulrecLors of Lhe
naLlonal Lconomlc and uevelopmenL AuLhorlLy and Lhe
ueparLmenL of 1rade and lndusLry as vlce-chalrmen and Lwo (2)
members each from workers and employers sectors who shall
be appolnLed by Lhe resldenL of Lhe hlllpplnes, upon Lhe
recommendaLlon of Lhe SecreLary of Labor and LmploymenL, Lo
be made on Lhe basls of Lhe llsL of nomlnees submlLLed by Lhe
workers and employers sectors, respectively, and who shall
serve for a Lerm of flve (3) years. Lach 8eglonal 8oard Lo be
headed by lLs chalrman shall be asslsLed by a SecreLarlaL.

LC, 126. ltoblbltloo oqolost lojooctloo. no prellmlnary or
permanenL ln[uncLlon or Lemporary resLralnlng order may be
lssued by any courL, Lrlbunal or oLher enLlLy agalnsL any
proceedlngs before Lhe Commlsslon or Lhe 8eglonal 8oards.

NASII1 LUM8Lk CC. VS NLkC (1998)
l: 81Wu of 8eglon 10 lssued a wage order provldlng for
lncrease ln mlnlmum wage. 1hree lumber companles asked for
exempLlon, whlch was approved by Lhe 8oard. unlon appealed,
nWC revoked Lhe exempLlon of 2 ouL of 3 lumber companles.
naslplL Lumber Co. was one of Lhem.

P: nWC was correcL ln revoklng/denylng Lhe exempLlon of Lhe
2 companles. Whlle Lhe 81Wu has Lhe power Lo lssue wage
orders, such orders are sub[ecL Lo Lhe guldellnes prescrlbed by
Lhe nWC. 1hus, Lhe guldellne whlch was Lhe basls for Lhe
exempLlon of Lhe Lwo lumber companles ls lnoperaLlve because
lL was never assenLed Lo by Lhe nWC. Moreover, lL ls also vold
because lL ls lnconslsLenL wlLh Lhe avowed SLaLe pollcles Lo
proLecL labor for lL lrregularly Lakes away Lhe mandaLed lncrease
ln Lhe mlnlmum wage awarded Lo Lhe workers.

3. S1ANDAkDS]CkI1LkIA ICk MINIMUM
WAGL IIkING

LC, 124. 5tooJotJs/ctltetlo fot mlolmom woqe flxloq. - 1he
reglonal mlnlmum wages Lo be esLabllshed by Lhe 8eglonal
8oard shall be as nearly adequaLe as ls economlcally feaslble Lo
malnLaln Lhe mlnlmum sLandards of llvlng necessary for Lhe
healLh, efflclency and general well-belng of Lhe employees
wlLhln Lhe framework of Lhe naLlonal economlc and soclal
developmenL program.

ln Lhe deLermlnaLlon of such reglonal mlnlmum wages, Lhe
8eglonal 8oard shall, among oLher relevanL facLors, conslder Lhe
followlng:
(a) 1he demand for llvlng wages,
(b) Wage ad[usLmenL vls--vls Lhe consumer prlce lndex,
(c) 1he cosL of llvlng and changes or lncreases Lhereln,
(d) 1he needs of workers and Lhelr famllles,
(e) 1he need Lo lnduce lndusLrles Lo lnvesL ln Lhe counLryslde,
(f) lmprovemenLs ln sLandards of llvlng,
(g) 1he prevalllng wage levels,
(h) lalr reLurn of Lhe caplLal lnvesLed and capaclLy Lo pay of
employers,
(l) LffecLs on employmenL generaLlon and famlly lncome, and
([) 1he equlLable dlsLrlbuLlon of lncome and wealLh along Lhe
lmperaLlves of economlc and soclal developmenL.

1he wages prescrlbed ln accordance wlLh Lhe provlslons of Lhls
1lLle shall be Lhe sLandard prevalllng mlnlmum wages ln every
reglon. 1hese wages shall lnclude wages varylng wlLh lndusLrles,
provlnces or locallLles lf ln Lhe [udgmenL of Lhe 8eglonal 8oard,
condlLlons make such local dlfferenLlaLlon proper and necessary
Lo effecLuaLe Lhe purpose of Lhls 1lLle.

Any person, company, corporaLlon, parLnershlp or any oLher
enLlLy engaged ln buslness shall flle and reglsLer annually wlLh
Lhe approprlaLe 8eglonal 8oard, Commlsslon and Lhe naLlonal
SLaLlsLlcs Cfflce, an lLemlzed llsLlng of Lhelr labor componenL,
speclfylng Lhe names of Lhelr workers and employees below Lhe
managerlal level, lncludlng learners, apprenLlces and
dlsabled/handlcapped workers who were hlred under Lhe Lerms
prescrlbed ln Lhe employmenL conLracLs, and Lhelr
correspondlng salarles and wages.

Where Lhe appllcaLlon of any prescrlbed wage lncrease by vlrLue
of a law or wage order lssued by any 8eglonal 8oard resulLs ln
dlsLorLlons of Lhe wage sLrucLure wlLhln an esLabllshmenL, Lhe
employer and Lhe unlon shall negoLlaLe Lo correcL Lhe
dlsLorLlons. Any dlspuLe arlslng from wage dlsLorLlons shall be
resolved Lhrough Lhe grlevance procedure under Lhelr collecLlve
bargalnlng agreemenL and, lf lL remalns unresolved, Lhrough
volunLary arblLraLlon.

unless oLherwlse agreed by Lhe parLles ln wrlLlng, such dlspuLe
shall be declded by Lhe volunLary arblLraLors wlLhln Len (10)
calendar days from Lhe Llme sald dlspuLe was referred Lo
volunLary arblLraLlon. ln cases where Lhere are no collecLlve
agreemenLs or recognlzed labor unlons, Lhe employers and
workers shall endeavor Lo correcL such dlsLorLlons. Any dlspuLe
arlslng Lherefrom shall be seLLled Lhrough Lhe naLlonal
ConclllaLlon and MedlaLlon 8oard and, lf lL remalns unresolved
afLer Len (10) calendar days of conclllaLlon, shall be referred Lo
Lhe approprlaLe branch of Lhe naLlonal Labor 8elaLlons
Commlsslon (nL8C). lL shall be mandaLory for Lhe nL8C Lo
conducL conLlnuous hearlngs and declde Lhe dlspuLe wlLhln
LwenLy (20) calendar days from Lhe Llme sald dlspuLe ls
submlLLed for compulsory arblLraLlon.

1he pendency of a dlspuLe arlslng from a wage dlsLorLlon shall
noL ln any way delay Lhe appllcablllLy of any lncrease ln
prescrlbed wage raLes pursuanL Lo Lhe provlslons of law or wage
order. As used hereln, a wage dlsLorLlon shall mean a slLuaLlon
where an lncrease ln prescrlbed wage raLes resulLs ln Lhe
ellmlnaLlon or severe conLracLlon of lnLenLlonal quanLlLaLlve
dlfferences ln wage or salary raLes beLween and among
employee groups ln an esLabllshmenL as Lo effecLlvely obllLeraLe
Lhe dlsLlncLlons embodled ln such wage sLrucLure based on skllls,
lengLh of servlce, or oLher loglcal bases of dlfferenLlaLlon.
All workers pald by resulL, lncludlng Lhose who are pald on
plecework, tokoy, pokyowor Lask basls, shall recelve noL less
Lhan Lhe prescrlbed wage raLes per elghL (8) hours of work a day,
or a proporLlon Lhereof for worklng less Lhan elghL (8) hours. All
recognlzed learnershlp and apprenLlceshlp agreemenLs shall be
consldered auLomaLlcally modlfled lnsofar as Lhelr wage clauses
are concerned Lo reflecL Lhe prescrlbed wage raLes.

8.4. WAGL CkDLk

LC, 123. woqe OtJet. - Whenever condlLlons ln Lhe reglon so
warranL, Lhe 8eglonal 8oard shall lnvesLlgaLe and sLudy all
perLlnenL facLs, and based on Lhe sLandards and crlLerla hereln
prescrlbed, shall proceed Lo deLermlne wheLher a Wage Crder
should be lssued.

Any such Wage Crder shall Lake effecL afLer flfLeen (13) days
from lLs compleLe publlcaLlon ln aL leasL one (1) newspaper of
general clrculaLlon ln Lhe reglon. ln Lhe performance of lLs wage-
deLermlnlng funcLlons, Lhe 8eglonal 8oard shall conducL publlc
hearings/consultations, giving notices to employees and
employers groups, provincial, city and municipal officials and
oLher lnLeresLed parLles.

Any parLy aggrleved by Lhe Wage Crder lssued by Lhe 8eglonal
8oard may appeal such order Lo Lhe Commlsslon wlLhln Len (10)
calendar days from Lhe publlcaLlon of such order. lL shall be
mandaLory for Lhe Commlsslon Lo declde such appeal wlLhln
slxLy (60) calendar days from Lhe flllng Lhereof.

1he flllng of Lhe appeal does noL sLay Lhe order unless Lhe
person appeallng such order shall flle wlLh Lhe Commlsslon, an
underLaklng wlLh a sureLy or sureLles saLlsfacLory Lo Lhe
Commlsslon for Lhe paymenL Lo Lhe employees affecLed by Lhe
order of Lhe correspondlng lncrease, ln Lhe evenL such order ls
afflrmed.

8.4.A. ML1nCDS CI IIkING
I. ILCCk WAGL ML1nCD
II. SALAk-CLILING ML1nCD

ILCCk WAGL ML1nCD VS. SALAk CLILING ML1nCD
lloor wage meLhod -add Lo Lhe prevlous mlnlmum wage. L.g.
436 + 100 = 336
Salary-celllng meLhod -all wages under a cerLaln wage lncreases
Lo LhaL wage. L.g. all wages under 336 musL be lncreased Lo
336
WnLN MA 1nL kLGICNAL 8CAkD MAkL A DL1LkMINA1ICN
1C INCkLASL 1nL WAGLS?
upon demand, Lhe board shall lnvesLlgaLe exlsLlng soclo-
economlc reallLles
1herefore, lL ls nC1 Au1CMA1lC

LMLCLkS CCNILDLkA1ICN CI 1nL nIL VS NWC
(1991)
l: Lmployers ConfederaLlon ls assalllng Lhe Wage Crder of Lhe
81Wu whlch lncreased by 17 Lhe mlnlmum wage of all
workers and employees ln Lhe prlvaLe secLor ln nC8 recelvlng
wages above Lhe sLaLuLory mlnlmum wage raLe of 123 per day.
Accordlng Lo Lmployers, Lhe board exceeded Lhelr auLhorlLy ln
dolng so, slnce under 8A 6727, Lhe laLLer may only prescrlbe
mlnlmum wages and noL salary celllngs.

P: 8oard dld nC1 exceed Lhelr auLhorlLy. 8A 6727 ls meanL Lo
raLlonallze wages by havlng permanenL boards declde Lhe wages
raLher Lhan leave lL up Lo Lhe deLermlnaLlon of Congress. 1he
shlfL from floor wage meLhod (Lhe flxlng of a deLermlnaLe
amounL LhaL would be added Lo Lhe prevalllng sLaLuLory
mlnlmum) Lo Lhe salary celllng meLhod (Wage ad[usLmenL ls
applled Lo employees recelvlng a denomlnaLed salary celllng)
was broughL abouL by Lhe labor dlspuLes arlslng from wage
dlsLorLlons. 1he salary cellng meLhod ls lnLended Lo prevenL, or
lessen Lhose dlspuLes.

8.4.8. VALIDI1
ML1kC8ANk VS NWC AND k1WC (2007)
l: 81W8 lssued a wage order granLlng an across Lhe board
lncrease Lo all prlvaLe employees ln Lhe reglon by 13.
MeLrobank soughL exempLlon buL Lhe nWC denled Lhelr
requesL, saylng LhaL Lhelr reason dld noL fall under Lhe
exempLlble caLegorles.

P: MeLrobank dld noL avall of Lhe remedy provlded by Lhe law
whlch was Lo appeal Lhe wage order before Lhe nWC, buL
noneLheless, Lhe CourL sLlll declded Lo rule on Lhe subsLanLlve
lssue lnvolved. Sald lssue lnvolves Lhe valldlLy of Lhe wage order
lmplemenLed, and Lhe CourL held LhaL lL was valld as Lo Lhe
mlnlmum wage earners buL vold for as Lo beyond/non-mlnlmum
wage earners. 81W8 exceeded lLs auLhorlLy when lL lncreased
the wage using an across-Lhe-board method, and not using the
Lwo meLhods avallable, whlch was elLher Lhe floor wage meLhod
or Lhe salary celllng meLhod.

8.4.C. WAGL DIS1Ck1ICN

LC, 124. As used hereln, a wage dlsLorLlon shall mean a slLuaLlon
where an lncrease ln prescrlbed wage raLes resulLs ln Lhe
ellmlnaLlon or severe conLracLlon of lnLenLlonal quanLlLaLlve
dlfferences ln wage or salary raLes beLween and among
employee groups ln an esLabllshmenL as Lo effecLlvely obllLeraLe
Lhe dlsLlncLlons embodled ln such wage sLrucLure based on skllls,
lengLh of servlce, or oLher loglcal bases of dlfferenLlaLlon.

kU8ANkLkS VS kUDLN1IAL 8ANk AND 1kUS1 (1999)
l: rubankers AssoclaLlon wroLe rudenLlal, requesLlng LhaL Lhe
Labor ManagemenL CommlLLee be convened Lo resolve Lhe
alleged wage dlsLorLlon afLer a serles of wage orders were
lmplemenLed ln 8eglon v and 8eglon vll. rubankers wanLed Lhe
wage orders Lo be lmpemenLed Lo all reglons ouLslde 8eglon v
and vll.

P: no wage dlsLorLlon ln Lhe case because Lhere was an lncrease
ln Lhe salary raLes of all pay classes, and furLhermore, Lhe
hlerarchy of poslLlons based on sklll, lengLh of servlce and oLher
loglcal bases of dlfferenLlaLlon was preserved. MosL lmporLanLly,
a dlsparlLy of wages beLween employees wlLh Lhe same
poslLlons buL ln dlfferenL reglons does noL conLemplaLe a wage
dlsLorLlon.

LlemenLs of Wage ulsLorLlon:
1) LxlsLlng hlerarchy of poslLlons wlLh correspondlng
salary raLes
2) SlgnlflcanL change ln Lhe salary raLe of a lower pay
class wlLhouL a concomlLanL lncrease ln Lhe salary raLe
of a hlgher one
3) LllmlnaLlon of Lhe dlsLlncLlon beLween Lhe Lwo levels
4) LxlsLence of a dlsLorLlon ln Lhe same reglon

8.S. IkLLDCM 1C 8AkGAIN

LC, 12S. lteeJom to botqolo. - no wage order shall be consLrued
Lo prevenL workers ln parLlcular flrms or enLerprlses or
lndusLrles from bargalnlng for hlgher wages wlLh Lhelr respecLlve
employers.

kA 6727 Sec 2, par 2. 1he SLaLe shall promoLe collecLlve
bargalnlng as Lhe prlmary mode of seLLllng wages and oLher
Lerms and condlLlons of employmenL, and whenever necessary,
Lhe mlnlmum wage raLes shall be ad[usLed ln a falr and equlLable
manner, conslderlng exlsLlng reglonal dlsparlLles ln Lhe cosL of
llvlng and oLher soclo-economlc facLors and Lhe naLlonal
economlc and soclal developmenL plans.

1he SLaLe shall promoLe collecLlve bargalnlng as Lhe prlmary
mode of seLLllng wages and oLher Lerms and condlLlons of
employmenL, and whenever necessary, Lhe mlnlmum wage raLes
shall be ad[usLed ln a falr and equlLable manner, conslderlng
exlsLlng reglonal dlsparlLles ln Lhe cosL of llvlng and oLher soclo-
economlc facLors and Lhe naLlonal economlc and soclal
developmenL plans.


nCW]WnLkL DC WCkkLkS 8AkGAIN 1nLIk WAGLS?
Crganlzed LsLabllshmenLs
(Lhose wlLh a duly
recognlzed unlon)
unorganlzed esLabllshmenLs
1. negoLlaLe (and
creaLe C8A)
2. Crlevance
Machlnery
3. volunLary
ArblLraLlon
1. 1ry Lo negoLlaLe wlLh
Lhe esLabllshmenL
2. nCM8
3. nL8C

8.6. LNAL1 ICk VICLA1ICN

kA 6727 Sec 12. Any person, corporaLlon, LrusL, flrm,
parLnershlp, assoclaLlon or enLlLy whlch refuses or falls Lo pay
any of Lhe prescrlbed lncreases or ad[usLmenLs ln Lhe wage raLes
made ln accordance wlLh Lhls AcL shall be punlshed by a flne noL
exceedlng LwenLy flve Lhousand pesos (23,000.00) and/or
lmprlsonmenL of noL less Lhan one (1) year nor more Lhan Lwo
(2) years: rovlded, 1haL any person convlcLed under Lhls AcL
shall noL be enLlLled Lo Lhe beneflLs provlded for under Lhe
robaLlons Law. lf Lhe vlolaLlon ls commlLLed by a corporaLlon,
LrusL or flrm, parLnershlp, assoclaLlon or any oLher enLlLy, Lhe
penalLy of lmprlsonmenL shall be lmposed on Lhe enLlLy's
responslble offlcers, lncludlng, buL noL llmlLed Lo, Lhe presldenL,
vlce-presldenL, chlef execuLlve offlcer, general manager,
managlng dlrecLor or parLner.

kA 8188. Any person, corporaLlon, LrusL, flrm, parLnershlp,
assoclaLlon or enLlLy whlch refuses or falls Lo pay any of Lhe
prescrlbed lncreases or ad[usLmenLs ln Lhe wage raLes made ln
accordance wlLh Lhls AcL shall be punlshed by a flne noL less Lhan
1wenLy-flve Lhousand pesos (23,000) nor more Lhan Cne
hundred Lhousand pesos (100,000) or lmprlsonmenL of noL less
Lhan Lwo (2) years nor more Lhan four (4) years, or boLh such
flne and lmprlsonmenL aL Lhe dlscreLlon of Lhe courL:

ltovlJeJ, 1haL any person convlcLed under Lhls AcL shall noL be
enLlLled Lo Lhe beneflLs provlded for under Lhe robaLlon Law.
1he employer concerned shall be ordered Lo pay an amounL
equlvalenL Lo double Lhe unpald beneflLs owlng Lo Lhe
employees:

rovlded, 1haL paymenL of lndemnlLy shall noL absolve Lhe
employer from Lhe crlmlnal llablllLy lmposable under Lhls AcL. lf
Lhe vlolaLlon ls commlLLed by a corporaLlon, LrusL or flrm,
parLnershlp, assoclaLlon or any oLher enLlLy Lhe penalLy of
lmprlsonmenL shall be lmposed upon Lhe enLlLy's responslble
offlcers, lncludlng, buL noL llmlLed Lo, Lhe presldenL, vlce-
presldenL, chlef execuLlve offlcer, general manager, managlng
dlrecLor or parLner.

C. WAGL AMLN1 AND kC1LC1ICN
C.1. ICkM CI AMLN1

LC, 102. lotms of poymeot. - no employer shall pay Lhe wages of
an employee by means of promlssory noLes, vouchers, coupons,
Lokens, LlckeLs, chlLs, or any ob[ecL oLher Lhan legal Lender, even
when expressly requesLed by Lhe employee. aymenL of wages
by check or money order shall be allowed when such manner of
paymenL ls cusLomary on Lhe daLe of effecLlvlLy of Lhls Code, or
ls necessary because of speclal clrcumsLances as speclfled ln
approprlaLe regulaLlons Lo be lssued by Lhe SecreLary of Labor
and LmploymenL or as sLlpulaLed ln a collecLlve bargalnlng
agreemenL.

CC, 170S. 1he laborer's wages shall be pald ln legal currency.

Ck, 8ook III ku|e VIII Sec. 1. Manner of wage paymenL. As a
general rule, wages shall be pald ln legal Lender and Lhe use of
Lokens, promlssory noLes, vouchers, coupons, or any oLher form
alleged Lo represenL legal Lender ls absoluLely prohlblLed even
when expressly requesLed by Lhe employee.

Ck, 8ook III ku|e VIII Sec. 2. aymenL by check. aymenL of
wages by bank checks, posLal checks or money orders ls allowed
where such manner of wage paymenL ls cusLomary on Lhe daLe
of Lhe effecLlvlLy of Lhe Code, where lL ls so sLlpulaLed ln a
collecLlve agreemenL, or where all of Lhe followlng condlLlons
are meL:

(a) 1here ls a bank or oLher faclllLy for encashmenL wlLhln a
radlus of one (1) kllomeLer from Lhe workplace,
(b) 1he employer or any of hls agenLs or represenLaLlves does
noL recelve any pecunlary beneflL dlrecLly or lndlrecLly from Lhe
arrangemenL,
(c) 1he employees are glven reasonable Llme durlng banklng
hours Lo wlLhdraw Lhelr wages from Lhe bank whlch Llme shall
be consldered as compensable hours worked lf done durlng
worklng hours, and
(d) 1he paymenL by check ls wlLh Lhe wrlLLen consenL of Lhe
employees concerned lf Lhere ls no collecLlve agreemenL
auLhorlzlng Lhe paymenL of wages by bank checks.

CCNGSCN VS NLkC (199S)
l: uomlnlco owns SouLhern llshlng lndusLry and he pays hls
workers on a plece-raLe wage, whlle also allowlng Lhem Lo clalm
Lhe Luna llver and lnLesLlnes. ln 1990, Lhere was a proposal Lo
lower Lhe raLe because of Lhe scarclLy of Luna, buL Lhls was
reslsLed by workers noe, 8oger, 8aymundo, aLrlclo, nehll, !oel,
and Lmmanuel. 1he nexL day, Lhey were lnformed LhaL Lhey

were replaced so Lhey flled a complalnL for underpaymenL of
wages, non-paymenL of overLlme pay, eLc.

H: Dominicos practice of paying respondents their wages plus
Lhe Luna llver and lnLesLlnes runs counLer Lo ArL 102 of Lhe Labor
Code - No. employet sboll poy tbe woqes of oo employee by
meoos of, ptomlssoty ootes, voocbets, coopoos, tokeos tlckets,
cblts, ot ooy object otbet tboo leqol teoJet, eveo wbeo exptessly
tepoesteJ by tbe employee. loymeot of woqes by cbeck ot
mooey otJet sboll be olloweJ wbeo socb moooet of poymeot ls
costomoty oo tbe Jote of effectlvlty of tbls coJe, ot ls oecessoty
os speclfleJ lo opptoptlote teqolotloos to be lssoeJ by tbe
5ectetoty of lobot ot os stlpoloteJ lo o collectlve botqololoq
oqteemeot. 1he facL LhaL Lhe respondenLs agreed Lo Lhe meLhod
does noL excuse uomlnlco from carrylng on wlLh lL, as
speclflcally provlded by Lhe law. AbsenL Lhe Luna llver and
lnLesLlnes, Lhe wages would fall under Lhe 1,000 mlnlmum
requlred by law.

C. 2. 1IML CI AMLN1

LC, 103. 1lme of poymeot. - Wages shall be pald aL leasL once
every Lwo (2) weeks or Lwlce a monLh aL lnLervals noL exceedlng
slxLeen (16) days. lf on accounL of fotce mojeote or
circumstances beyond the employers control, payment of
wages on or wlLhln Lhe Llme hereln provlded cannoL be made,
Lhe employer shall pay Lhe wages lmmedlaLely afLer such fotce
mojeote or clrcumsLances have ceased.

no employer shall make paymenL wlLh less frequency Lhan once
a monLh.

1he paymenL of wages of employees engaged Lo perform a Lask
whlch cannoL be compleLed ln Lwo (2) weeks shall be sub[ecL Lo
Lhe followlng condlLlons, ln Lhe absence of a collecLlve
bargalnlng agreemenL or arblLraLlon award: (1) 1haL paymenLs
are made aL lnLervals noL exceedlng slxLeen (16) days, ln
proporLlon Lo Lhe amounL of work compleLed, (2) 1haL flnal
seLLlemenL ls made upon compleLlon of Lhe work.

Ck, 8ook III ku|e VIII Sec. 3. 1lme of paymenL.

(a) Wages shall be pald noL less Lhan once every Lwo (2) weeks
or Lwlce a monLh aL lnLervals noL exceedlng slxLeen (16) days,
unless paymenL cannoL be made wlLh such regularlLy due Lo
force ma[eure or clrcumsLances beyond Lhe employer's conLrol
ln whlch case Lhe employer shall pay Lhe wages lmmedlaLely
afLer such force ma[eure or clrcumsLances have ceased.

(b) ln case of paymenL of wages by resulLs lnvolvlng work whlch
cannoL be flnlshed ln Lwo (2) weeks, paymenL shall be made aL
lnLervals noL exceedlng slxLeen days ln proporLlon Lo Lhe amounL
of work compleLed. llnal seLLlemenL shall be made lmmedlaLely
upon compleLlon of Lhe work.

GILLLS VS CA (2009)
l: 8len was asslgned Lo lndla by hls company Skl when Lhe laLLer
enLered lnLo an agreemenL wlLh C8l Lo underLake a pro[ecL
Lhere. 8len recelved an advance of hls salary plus a small sum
when he goL Lo lndla, buL afLer LhaL, for 3 x monLhs, he dld noL
recelve anyLhlng desplLe worklng 18 hrs a day, 7 days a week. Pe
reslgned from Lhe pro[ecL, buL apparenLly, Lhe offlclals of Skl had
klcked hlm ouL of Lhe company already.
H: Biens removal from SKI was NOT an intra-corporaLe
conLroversy hence Lhe nL8C had [urlsdlcLlon Lo hear Lhe case. As
regards Lo hls dlsmlssal, Lhe CourL held LhaL he was
consLrucLlvely dlsmlssed, Lhus lllegally dlsmlssed. 8len dld noL
volunLarlly reslgn from Skl, havlng merely lnLended Lo reslgn
from Lhe lndla pro[ecL only. Moreover, lL was Lhe neglecL of Skl
Lo regularly pay hlm hls wages LhaL lmpelled 8len Lo Lender hls
reslgnaLlon from Lhe lndla pro[ecL. Skl vlolaLed ArL 103 of Lhe
Labor Code.

3. LACL CI AMLN1

LC, 104. lloce of poymeot. - aymenL of wages shall be made aL
or near Lhe place of underLaklng, excepL as oLherwlse provlded
by such regulaLlons as Lhe SecreLary of Labor and LmploymenL
may prescrlbe under condlLlons Lo ensure greaLer proLecLlon of
wages

Ck, 8ook III ku|e VIII Sec. 4. lace of paymenL. As a general
rule, Lhe place of paymenL shall be aL or near Lhe place of
underLaklng. aymenL ln a place oLher Lhan Lhe work place shall
be permlsslble only under Lhe followlng clrcumsLances:

(a) When paymenL cannoL be effecLed aL or near Lhe place of
work by reason of Lhe deLerloraLlon of peace and order

condlLlons, or by reason of acLual or lmpendlng emergencles
caused by flre, flood, epldemlc or oLher calamlLy renderlng
paymenL LhereaL lmposslble,
(b) When Lhe employer provldes free LransporLaLlon Lo Lhe
employees back and forLh, and
(c) under any oLher analogous clrcumsLances, rovlded, 1haL Lhe
Llme spenL by Lhe employees ln collecLlng Lhelr wages shall be
consldered as compensable hours worked,
(d) no employer shall pay hls employees ln any bar, nlghL or day
club, drlnklng esLabllshmenL, massage cllnlc, dance hall, or oLher
slmllar places or ln places where games are played wlLh sLakes of
money or Lhlngs represenLlng money excepL ln Lhe case of
persons employed ln sald places.

kN VS kU1n A (2012)
l: 8uLh, along wlLh some employees of 8n were expelled from
Lhe unlon, and Lhus were LermlnaLed from Lhe company due Lo
Lhe unlon securlLy clause beLween Lhe unlon and 8n whereln
Lhose who were expelled from Lhe unlon were deemed
removed from Lhe company. 1he Labor ArblLer ordered for Lhe
relnsLaLemenL of Lhe respondenLs, whlch 8n complled wlLh, by
way of payroll relnsLaLemenL. Powever, because of Lhe lnLra-
union dispute, the respondents werent allowed inside the
premlses of 8n anymore so Lhe laLLer asked Lhe respondenLs Lo
open A1M accounLs where Lhelr salarles would be deposlLed
every 3Lh and 20Lh of Lhe monLh.
P: Manner of relnsLaLlng dlsmlssed employees ls a managerlal
prerogaLlve and ls lmmedlaLely self-execuLory wlLhouL need of a
wrlL of execuLlon. Moreover, Lhe proposal Lo pay Lhrough Lhe
A1M ls noL pre[udlclal and oppresslve slnce lL would noL enLall
any unusual efforL by Lhe respondenLs Lo collecL Lhelr money.
More lmporLanLly, Lhe requlremenL by Lhe law of forLnlghLly
lnLervals ls observed by Lhe release of Lhe salarles every 3Lh and
20Lh of Lhe monLh.

4. LkSCN 1C A

LC, 10S. ultect poymeot of woqes. - Wages shall be pald dlrecLly
Lo Lhe workers Lo whom Lhey are due, excepL:

(a) ln cases of fotce mojeote renderlng such paymenL lmposslble
or under oLher speclal clrcumsLances Lo be deLermlned by Lhe
SecreLary of Labor and LmploymenL ln approprlaLe regulaLlons,
ln whlch case, Lhe worker may be pald Lhrough anoLher person
under wrlLLen auLhorlLy glven by Lhe worker for Lhe purpose, or

(b) Where Lhe worker has dled, ln whlch case, Lhe employer may
pay Lhe wages of Lhe deceased worker Lo Lhe helrs of Lhe laLLer
wlLhouL Lhe necesslLy of lnLesLaLe proceedlngs. 1he clalmanLs, lf
Lhey are all of age, shall execuLe an affldavlL aLLesLlng Lo Lhelr
relaLlonshlp Lo Lhe deceased and Lhe facL LhaL Lhey are hls helrs,
Lo Lhe excluslon of all oLher persons. lf any of Lhe helrs ls a
mlnor, Lhe affldavlL shall be execuLed on hls behalf by hls naLural
guardlan or nexL-of-kln. 1he affldavlL shall be presenLed Lo Lhe
employer who shall make paymenL Lhrough Lhe SecreLary of
Labor and LmploymenL or hls represenLaLlve. 1he represenLaLlve
of Lhe SecreLary of Labor and LmploymenL shall acL as referee ln
dlvldlng Lhe amounL pald among Lhe helrs. 1he paymenL of
wages under Lhls ArLlcle shall absolve Lhe employer of any
furLher llablllLy wlLh respecL Lo Lhe amounL pald.

Ck, 8ook III ku|e VIII Sec. S. ulrecL paymenL of wages.
aymenL of wages shall be made dlrecL Lo Lhe employee enLlLled
LhereLo excepL ln Lhe followlng cases:

(a) Where Lhe employer ls auLhorlzed ln wrlLlng by Lhe employee
Lo pay hls wages Lo a member of hls famlly,
(b) Where paymenL Lo anoLher person of any parL of Lhe
employee's wages ls auLhorlzed by exlsLlng law, lncludlng
paymenLs for Lhe lnsurance premlums of Lhe employee and
unlon dues where Lhe rlghL Lo check-off has been recognlzed by
Lhe employer ln accordance wlLh a collecLlve agreemenL or
auLhorlzed ln wrlLlng by Lhe lndlvldual employees concerned, or
(c) ln case of deaLh of Lhe employee as provlded ln Lhe
succeedlng SecLlon

Ck, 8ook III ku|e VIII Sec. 6. Wages of deceased employee.
1he paymenL of Lhe wages of a deceased employee shall be
made Lo hls helrs wlLhouL Lhe necesslLy of lnLesLaLe proceedlngs.
When Lhe helrs are of age, Lhey shall execuLe an affldavlL
aLLesLlng Lo Lhelr relaLlonshlp Lo Lhe deceased and Lhe facL LhaL
Lhey are hls helrs Lo Lhe excluslon of all oLher persons. ln case
any of Lhe helrs ls a mlnor, such affldavlL shall be execuLed ln hls
behalf by hls naLural guardlan or nexL of kln. upon presenLaLlon
of Lhe affldavlL Lo Lhe employer, he shall make paymenL Lo Lhe
helrs as represenLaLlve of Lhe SecreLary of Labor and
LmploymenL.

8LkMISC VS LSCANC (19S9)
l: Lufroclo, along wlLh oLher members of Lhe unlon performed
sLevedorlng and arrasLre funcLlons for Lscano, buL Lhe laLLer has
noL dlrecLly pald Lufroclo or any of Lhe oLher peLlLloners any
compensaLlon for Lhelr servlces, paylng Lhe unlon lnsLead. unlon
broughL an acLlon for several clalms, lncludlng Lhe dlrecL
payment of the petitioners wages.

P: 1he work by Lhe laborers was underLaken as a group, and noL
ln Lhelr lndlvldual capaclLles. 1he conLracL Lo perform Lhe servlce
was made by Lhe leader on behalf of Lhe group. 1hus, Lhe need
Lo pay for Lhe leadershlp was presenL. 1he CourL held LhaL Lhere

was no basls Lo rule LhaL Lhe provlslon on dlrecL paymenL of
wages was vlolaLed. lf rackeLeerlng was employed by Lhe
leaders, Lhe remedy was noL Lo flle a case ln Lhe SC buL raLher
for Lhe group Lo organlze wlLhln Lhem a unlon LhaL wlll secure
Lhelr prlvlleges.

D. WAGL kCnI8I1ICNS

D.1. kCnI8I1ICN AGAINS1 IN1LkILkLNCL IN
DISCSAL CI WAGLS

LC, 112. Noo-lotetfeteoce lo Jlsposol of woqes. - no employer
shall llmlL or oLherwlse lnLerfere wlLh Lhe freedom of any
employee Lo dlspose of hls wages. Pe shall noL ln any manner
force, compel, or obllge hls employees Lo purchase merchandlse,
commodlLles or oLher properLy from any oLher person, or
oLherwlse make use of any sLore or servlces of such employer or
any oLher person.

Ck, 8ook III ku|e VIII Sec. 9. Labor-only conLracLlng.

(a) Any person who underLakes Lo supply workers Lo an
employer shall be deemed Lo be engaged ln labor-only
conLracLlng where such person:
(1) uoes noL have subsLanLlal caplLal or lnvesLmenL ln Lhe form
of Lools, equlpmenL, machlnerles, work premlses and oLher
maLerlals, and
(2) 1he workers recrulLed and placed by such person are
performlng acLlvlLles whlch are dlrecLly relaLed Lo Lhe prlnclpal
buslness or operaLlons of Lhe employer ln whlch workers are
hablLually employed.

(b) Labor-only conLracLlng as deflned hereln ls hereby prohlblLed
and Lhe person acLlng as conLracLor shall be consldered merely
as an agenL or lnLermedlary of Lhe employer who shall be
responslble Lo Lhe workers ln Lhe same manner and exLenL as lf
Lhe laLLer were dlrecLly employed by hlm.

(c) lor cases noL falllng under Lhls 8ule, Lhe SecreLary of Labor
and LmploymenL shall deLermlne Lhrough approprlaLe orders
wheLher or noL Lhe conLracLlng ouL of labor ls permlsslble ln Lhe
llghL of Lhe clrcumsLances of each case and afLer conslderlng Lhe
operaLlng needs of Lhe employer and Lhe rlghLs of Lhe workers
lnvolved. ln such case, he may prescrlbe condlLlons and
resLrlcLlons Lo lnsure Lhe proLecLlon and welfare of Lhe workers.

2. kCnI8I1ICN AGAINS1 WAGL DLDUC1ICN

LC, 113. woqe JeJoctloo. - no employer, ln hls own behalf or ln
behalf of any person, shall make any deducLlon from Lhe wages
of hls employees, excepL:
(a) ln cases where Lhe worker ls lnsured wlLh hls consenL by Lhe
employer, and Lhe deducLlon ls Lo recompense Lhe employer for
Lhe amounL pald by hlm as premlum on Lhe lnsurance,
(b) lor unlon dues, ln cases where Lhe rlghL of Lhe worker or hls
unlon Lo check-off has been recognlzed by Lhe employer or
auLhorlzed ln wrlLlng by Lhe lndlvldual worker concerned, and
(c) ln cases where Lhe employer ls auLhorlzed by law or
regulaLlons lssued by Lhe SecreLary of Labor and LmploymenL.

Ck, 8ook III ku|e VIII Sec. 10. aymenL of wages ln case of
bankrupLcy. unpald wages earned by Lhe employees before
Lhe declaraLlon of bankrupLcy or [udlclal llquldaLlon of Lhe
employer's buslness shall be glven flrsL preference and shall be
pald ln full before oLher credlLors may esLabllsh any clalm Lo a
share ln Lhe asseLs of Lhe employer.

LC ArL. 112 113
! Only says no employer, thus, is a mere
prohlblLlon on Lhe parL of employers
LC ArL. 116-119
! Deliberately says, it shall be illegal, therefore,
LC ArL. 294 (penalLles) applles
AddlLlonal prohlblLlon:
! ArL. 128 (d)
rohlblLlon agalnsL obsLrucLlng Lhe
orders of Lhe SecreLary of Labor and
LmploymenL
ulrecLed Lo any lnferlor courL
GLNLSIS 1kANSCk1 SLkVICL VS UMMG1 (2010)
l: !uan worked for Cenesls as a drlver on commlsslon basls. Pe
was LermlnaLed afLer because of an lncldenL where he was
drlvlng recklessly. Pe flled a complalnL for lllegal dlsmlssal,
paymenL of beneflLs, and Lhe lllegal deducLlon of LollgaLe fees
from hls salary.

P: !uan may clam relmbursemenL for Lhe LollgaLe fees whlch
were lllegally deducLed from hls salary. 1he wlLhholdlng of sald
amounL marked a change ln Lhe meLhod of paymenL of wages as
well as a dlmlnuLlon of hls wages pursuanL Lo ArL 113.

NINA ILWLLk VS MCN1LCILLC (2011)
l: nlna !ewelry lmposed a company pollcy whereln employees
were requlred Lo posL a cash bond of 13 of Lhelr salarles for
any damage Lo Lhe [ewelry due Lo Lhelr faulL or negllgence. As a
form of proLesL Lo Lhe sald cash bond, respondenLs Lllsea and

Madellne no longer reporLed for work and flled a complalnL for
lllegal dlsmlssal.

P: Ceneral rule ls LhaL no salary deducLlons may be made. 1here
are 3 excepLlon whlch fall under ArL 113 (see case above).
lndeed, Lhe company may be glven managemenL prerogaLlve
buL ln Lhls case, nlna !ewelry falled Lo prove LhaL Lhelr reason for
Lhe cash bond fell under Lhose speclflcally menLloned under ArL
113.

MAkIL1A N. Ck1ILLC VS LIL12 (2012)
l: MarleLLa was a Sales 8epresenLaLlve employed by LleLz. She
slgned a Coodwlll Clause whereln lL was sald LhaL lf she worked
for any compeLlLor wlLhln 3 years followlng her LermlnaLlon, she
shall pay Lo LleLz 100 of her compensaLlon for Lhe lasL 12
monLhs. MarleLLa evenLually goL hlred by a compeLlLor, Ld keller
hlllpplnes, all Lhe whlle demandlng LleLz for Lhe paymenL of her
remalnlng salarles.

H: Mariettas claim for payment of her salarles cannoL be offseL
against Lentzs claim for liquidated damages which arose from
Lhe vlolaLlon of Lhe Coodwlll Clause. Sald amounLs were ln
dlfferenL [urlsdlcLlons, Lhe nonpaymenL of salarles under labor
law, Lhe llquldaLed damages under clvll law. WhaL LleLz ls
conLemplaLlng does noL fall under Lhe excepLlons seL forLh ln ArL
113 as Lo Lhe salary deducLlons allowed by law.

D.3. kCnI8I1ICN AGAINS1 kLUIkLMLN1 1C
MAkL DLCSI1S ICk LCSS Ck DAMAGL

LC, 114. ueposlts fot loss ot Jomoqe. - no employer shall requlre
hls worker Lo make deposlLs from whlch deducLlons shall be
made for Lhe relmbursemenL of loss of or damage Lo Lools,
maLerlals, or equlpmenL supplled by Lhe employer, excepL when
Lhe employer ls engaged ln such Lrades, occupaLlons or buslness
where Lhe pracLlce of maklng deducLlons or requlrlng deposlLs ls
a recognlzed one, or ls necessary or deslrable as deLermlned by
Lhe SecreLary of Labor and LmploymenL ln approprlaLe rules and
regulaLlons.

LC, 11S. llmltotloos. - no deducLlon from Lhe deposlLs of an
employee for Lhe acLual amounL of Lhe loss or damage shall be
made unless Lhe employee has been heard Lhereon, and hls
responslblllLy has been clearly shown.

Ck, 8ook III ku|e VIII Sec. 11. Attorney's fees. ALLorney's fees
ln any [udlclal or admlnlsLraLlve proceedlngs for Lhe recovery of
wages shall noL exceed 10 percenL of Lhe amounL awarded. 1he
fees may be deducLed from Lhe LoLal amounL due Lhe wlnnlng
parLy.
DLN1LCn MANUIAC1UkING VS NLkC (1989)
l: rlvaLe respondenLs flled a complalnL before Lhe nL8C agalnsL
uLn1LCP for non-paymenL of 13Lh monLh pay, lllegal dlsmlssal,
relnsLaLemenL lf posslble, paymenL of separaLlon pay, and a
refund of Lhe cash bond Lhey flled.

P: rlvaLe respondenLs are enLlLled Lo 13Lh monLh pay, followlng
Lhe provlslons of u 831 requlrlng LhaL Lhe baslc salary of an
employee musL exceed 1,000 ln order Lo be exempL from 13Lh
monLh pay. Such celllng raLe refers Lo Lhe baslc salary and noL
Lhe LoLal monLhly compensaLlon. uLn1LCP also cannoL clalm
exempLlon from u 831 because Lhey need auLhorlzaLlon from
Lhe Labor SecreLary flrsL.

IIVL I 1AkI VS NLkC (1994)
l: uomlngo and CllberL work for llve ! as Laxl drlvers. 1helr
boundary was 700 for alrcon cars, and 400 for non alrcon cars,
20 paymenL for car wash, and 13 for deflclencles for
boundary.

P: ArL 114 of Lhe LC only applles Lo deposlLs for loss or damage
Lo Lools, maLerlals, or equlpmenL supplled by Lhe employer.
1hus, Lhe 13 deflclency fee for Lhe boundary does noL fall
under such provlslon and Lhe prlvaLe respondenLs are enLlLled Lo
Lhe refund.

4. kCnI8I1ICN AGAINS1 WI1nnCLDING CI
WAGLS

LC, 116. wltbbolJloq of woqes ooJ klckbocks ptoblblteJ. - lL shall
be unlawful for any person, dlrecLly or lndlrecLly, Lo wlLhhold
any amounL from Lhe wages of a worker or lnduce hlm Lo glve up
any parL of hls wages by force, sLealLh, lnLlmldaLlon, LhreaL or by
any other means whatsoever without the workers consent.

CC, 1706. WlLhholdlng of Lhe wages, excepL for a debL due, shall
noL be made by Lhe employer.

SnS erforated Mater|a|s vs D|az (2010)
F: Manny worked for SHS as a Business Devt Manager.
However, the president was dissatisfied with Mannys poor
worklng record he falled Lo make concreLe buslness proposals,
or any measures Lo lmprove producLlvlLy so Lhe former
instructed that the latters salary be withheld.

H: Withholding of Mannys salary was an invalid management
prerogaLlve. Such wlLhholdlng of salary, ln facL, amounLs Lo
consLrucLlve dlsmlssal. AbsenL any showlng LhaL sald wlLhholdlng

falls under Lhe excepLlons shown under ArL 113, Lhe same ls
deemed Lo be lnvalld, as was Lhe case here.

S. kCnI8I1ICN AGAINS1 DLDUC1ICN 1C
LNSUkL LMLCMLN1

LC, 117. ueJoctloo to eosote employmeot. - lL shall be unlawful
Lo make any deducLlon from Lhe wages of any employee for Lhe
beneflL of Lhe employer or hls represenLaLlve or lnLermedlary as
conslderaLlon of a promlse of employmenL or reLenLlon ln
employmenL.

6. kCnI8I1ICN AGAINS1 kL1ALIA1Ck
MLASUkLS

LC, 118. ketollototy meosotes. - lL shall be unlawful for an
employer Lo refuse Lo pay or reduce Lhe wages and beneflLs,
dlscharge or ln any manner dlscrlmlnaLe agalnsL any employee
who has flled any complalnL or lnsLlLuLed any proceedlng under
Lhls 1lLle or has LesLlfled or ls abouL Lo LesLlfy ln such
proceedlngs.

7. kCnI8I1ICN AGAINS1 IALSL kLCk1ING

LC, 119. lolse tepottloq. - lL shall be unlawful for any person Lo
make any sLaLemenL, reporL, or record flled or kepL pursuanL Lo
Lhe provlslons of Lhls Code knowlng such sLaLemenL, reporL or
record Lo be false ln any maLerlal respecL.

Ck, 8ook III ku|e k Sec. 13. lalse reporLlng. lL shall be
unlawful for any employer or any person Lo make any false
sLaLemenL, reporL or record on maLLers requlred Lo be kepL or
malnLalned pursuanL Lo Lhe provlslons of Lhls 8ule.
8. Prohibition against keeping of employees records in a place
oLher Lhan Lhe workplace

Ck, 8ook III ku|e k Sec. 11. lace of records. All employmenL
records of Lhe employees shall be kepL and malnLalned by Lhe
employer ln or abouL Lhe premlses of Lhe work place. 1he
premlses of a work-place shall be undersLood Lo mean Lhe maln
or branch offlce of Lhe esLabllshmenL, lf any, dependlng upon
where Lhe employees are regularly asslgned. 1he keeplng of Lhe
employee's records ln anoLher place ls prohlblLed.

Ck, 8ook III ku|e k Sec. 12. reservaLlon of records. All
employmenL records requlred Lo be kepL and malnLalned by
employers shall be preserved for aL leasL Lhree (3) years from
Lhe daLe of Lhe lasL enLry ln Lhe records.

SCU1n MC1CkIS1S VS 1CSCC (1990)
l: 1osoc and some of hls coworkers flled a complalnL for
nonpaymenL of LCCLA agalnsL SML so Lhe Labor Cfflcer ordered
an lnspecLlon of Lhelr records ln Lhe offlce. SML flled for a serles
of defermenLs buL evenLually Lhe Labor Cfflcer dlrecLed SML Lo
pay for Lhe LCCLA.

P: 8eglonal ulrecLor had [urlsdlcLlon Lo glve Lhe money award Lo
Lhe workers, excepL Lhose wlLh money clalms above 3,000.
1hose above 3,000 should proceed Lo Lhe Labor ArblLer. no
reason for SML Lo complaln because Lhey were glven ample Llme
Lo explaln Lhelr slde buL Lhey falled Lo do so. Such fallure Lo
explaln Lhelr slde was manlfesLed when Lhey sald LhaL Lhey had
Lo geL Lhe employee records from Lhe Manlla branch, a clear
vlolaLlon of Sec 11, 8ule 10 8ook 2 of Lhe Cmnlbus 8ules
lmplemenLlng Lhe LC:

All employmenL records of Lhe employees of Lhe employer shall
be kepL and malnLalned ln or abouL Lhe premlses of Lhe
workplace. 1he premlses of a workplace shall be undersLood Lo
mean Lhe maln or branch offlce or esLabllshmenL, lf any,
dependlng upon where Lhe employees are regularly asslgned.
1he keeplng of Lhe employee's records ln anoLher place ls
prohlblLed.

9. kCnI8I1ICN AGAINS1
GAkNISnMLN1]LkLCU1ICN

CC, 1708. 1he laborer's wages shall noL be sub[ecL Lo execuLlon
or aLLachmenL, excepL for debLs lncurred for food, shelLer,
cloLhlng and medlcal aLLendance.

GAA VS CA (198S)
l: Lurophll was lnvolved ln a Clvll Case agalnsL 8osarlo. Lurophll
won, so [udgmenL was rendered agalnsL Lhe laLLer. A wrlL of
execuLlon was lssued wlLh Lhe sherlff lssulng a noLlce of
garnlshmenL on Ll Crande PoLel where 8osarlo was employed,
garnlshlng her salary, commlsslon, and remuneraLlon.

P: 8osarlo ls noL covered by ArLlcle 1708 of Lhe Clvll Code,
malnly because she ls noL a laborer as conLemplaLed under Lhe
sald provlslon. A laborer, under 1708, ls one who does manual
and physlcal labor.


L. WCkkLk kLILkLNCL IN 1nL LVLN1 CI
8ANkkU1C

LC, 110. wotket ptefeteoce lo cose of booktoptcy. - ln Lhe evenL
of bankrupLcy or llquldaLlon of an employers business, his
workers shall en[oy flrsL preference as regards Lhelr wages and
oLher moneLary clalms, any provlslons of law Lo Lhe conLrary
noLwlLhsLandlng. Such unpald wages and moneLary clalms shall
be pald ln full before clalms of Lhe governmenL and oLher
credlLors may be pald.

Ck, 8ook III ku|e VIII Sec. 7. Clvll llablllLy of employer and
conLracLors. Lvery employer or lndlrecL employer shall be
[olnLly and severally llable wlLh hls conLracLor or sub-conLracLor
for Lhe unpald wages of Lhe employees of Lhe laLLer. Such
employer or lndlrecL employer may requlre Lhe conLracLor or
sub-conLracLor Lo furnlsh a bond equal Lo Lhe cosL of labor under
conLracL on condlLlon LhaL Lhe bond wlll answer for Lhe wages
due Lhe employees should Lhe conLracLor or subconLracLor, as
Lhe case may be, fall Lo pay Lhe same.

CC 1707. 1he laborer's wages shall be a llen on Lhe goods
manufacLured or Lhe work done.

CC 2241(6). WlLh reference Lo speclflc movable properLy of Lhe
debLor, Lhe followlng clalms or llens shall be preferred: Clalms
for laborers' wages, on Lhe goods manufacLured or Lhe work
done

CC 2242 (3). WlLh reference Lo speclflc lmmovable properLy and
real rlghLs of Lhe debLor, Lhe followlng clalms, morLgages and
llens shall be preferred, and shall consLlLuLe an encumbrance on
Lhe lmmovable or real rlghL: Clalms of laborers, masons,
mechanlcs and oLher workmen, as well as of archlLecLs,
englneers and conLracLors, engaged ln Lhe consLrucLlon,
reconsLrucLlon or repalr of bulldlngs, canals or oLher works,
upon sald bulldlngs, canals or oLher works.

CC 2244(2). WlLh reference Lo oLher properLy, real and personal,
of Lhe debLor, Lhe followlng clalms or credlLs shall be preferred
ln Lhe order named: CredlLs for servlces rendered Lhe lnsolvenL
by employees, laborers, or household helpers for one year
precedlng Lhe commencemenL of Lhe proceedlngs ln lnsolvency.

CC, 224S. CredlLs of any oLher klnd or class, or by any oLher rlghL
or LlLle noL comprlsed ln Lhe four precedlng arLlcles, shall en[oy
no preference.

CC, 2246. 1hose credlLs whlch en[oy preference wlLh respecL Lo
speclflc movables, exclude all oLhers Lo Lhe exLenL of Lhe value
of Lhe personal properLy Lo whlch Lhe preference refers. CC,
2248. 1hose credlLs whlch en[oy preference ln relaLlon Lo
speclflc real properLy or real rlghLs, exclude all oLhers Lo Lhe
exLenL of Lhe value of Lhe lmmovable or real rlghL Lo whlch Lhe
preference refers.

CC, 22S0. 1he excess, lf any, afLer Lhe paymenL of Lhe credlLs
whlch en[oy preference wlLh respecL Lo speclflc properLy, real or
personal, shall be added Lo Lhe free properLy whlch Lhe debLor
may have, for Lhe paymenL of Lhe oLher credlLs

kLU8LIC V LkAL1A (1987)
l: ln Lhe lnsolvency proceedlngs of CuallLy 1obacco CorporaLlon,
Lhe ff clalms of credlLors were flled:
1. Clalm of separaLlon pay of Lhe members of Lhe uS1C
2. Clalm of separaLlon pay of Lhe members of lCl1Al
3. 1obacco lnspecLlon fees by 8l8
4. CusLoms duLles and Laxes payable on varlous
lmporLaLlons by 8CC

P: "Wages" under ArLlcle 110 of Lhe Labor Code may be
regarded as embraclng wlLhln lLs scope separaLlon pay whlch ls
clalmed by uS1C and lCl1Al. Powever, Lhough preferred, Laxes
sLlll Lake precedence over such clalms because of Lhe overrldlng
preference accorded under Lhe scheme of Lhe Clvll Code Lo Lax
clalms of Lhe governmenL or any subdlvlslon Lhereof whlch
consLlLuLe a llen upon properLles of Lhe lnsolvenL as lL ls
frequenLly sald LhaL Laxes are Lhe very llfeblood of governmenL,
and are consldered speclally preferred credlLs.

D8 v NLkC (199S)

l: u8 as morLgagee of 1roplcal hlllpplnes Wood lndusLrles lnc.
foreclosed lLs planL faclllLles and equlpmenL however, Lhe
buslness dld noL LoLally shuL down. Leonor Lhen flled a complalnL
for separaLlon pay, 13Lh monLh pay, vacaLlon and slck
leave pay, salarles and allowances followlng Lhe closure of
Lhe planL.

H: It was premature for the NLRC to enforce workers preference
because Lhere has Lo be bankrupLcy or [udlclal llquldaLlon before
you can apply ArL. 110 of Lhe Labor Code. 1o lnlLlaLe Lhe process
of paylng off clalms aL a premaLure sLage ls absurd, as lL puLs Lhe
worker ln a beLLer poslLlon Lhan Lhe SLaLe whlch could only
asserL lLs own prlor reference ln case of a [udlclal proceedlng.


kINDS CI CkLDI1S:
Speclal preferred credlLs
Crdlnary preferred credlLs
Common credlLs
kINDS CI SLCIAL kLILkkLD CkLDI1S:
1. CC ArL. 2241 speclflc movables
number of klnds of clalms or llens preferred 13
Cnly 2241 (1) ls covered by an overrldlng prlnclple:
! Duties, taxes and fees due thereon to the State
or any subdivision thereof
2241 (6) pertains to laborers wages
! Claims for laborers' wages, on the goods
manufactured or the work done;
2. CC ArL. 2242 speclflc lmmovables and real rlghLs of Lhe
debLor
number of klnds of clalms or llens preferred 10
Cnly 2242 (1) ls covered by an overrldlng prlnclple:
Taxes due upon the land or building
2242 (3) pertains to laborers wages:
Clalms of laborers, masons, mechanlcs and
oLher workmen, as well as of archlLecLs, englneers
and conLracLors, engaged ln Lhe consLrucLlon,
reconsLrucLlon or repalr of bulldlngs, canals or
oLher works, upon sald bulldlngs, canals or oLher
works

Slnce only 2241 (1) and 2242 (1) ls covered by an overrldlng
prlnclple, Lhen, lL ls only afLer Lhose under lL are saLlsfled
LhaL Lhe oLher speclal preferred credlLs shall be Laken lnLo
conslderaLlon. (basls: u8 vs. nL8C)
rof. uaway says: Lhls ls noL rlghL. LC ArL. 110 ls clear:
workers shall enjoy f|rst preference as regards Lhelr wages
and oLher moneLary clalms, any prov|s|ons of |aw to the
contrary notwithstanding. lormer res. Marcos musL
have LhoughL of Lhe 2 CC arLlcles when he promulgaLed Lhe
Labor Code.

I. WAGL kLCCVLk]IUkISDIC1ICN CI DCLL
kLGICNAL DIkLC1Ck VIS--VIS LA8Ck Ak8I1Lk

LC, 128. vlsltotlol ooJ eofotcemeot powet.

(a) 1he SecreLary of Labor and LmploymenL or hls duly
auLhorlzed represenLaLlves, lncludlng labor regulaLlon offlcers,
shall have access to employers records and premises aL any
Llme of Lhe day or nlghL whenever work ls belng underLaken
Lhereln, and Lhe rlghL Lo copy Lherefrom, Lo quesLlon any
employee and lnvesLlgaLe any facL, condlLlon or maLLer whlch
may be necessary Lo deLermlne vlolaLlons or whlch may ald ln
Lhe enforcemenL of Lhls Code and of any labor law, wage order
or rules and regulaLlons lssued pursuanL LhereLo.

(b) noLwlLhsLandlng Lhe provlslons of ArLlcles 129 and 217 of
Lhls Code Lo Lhe conLrary, and ln cases where Lhe relaLlonshlp of
employer-employee sLlll exlsLs, Lhe SecreLary of Labor and
LmploymenL or hls duly auLhorlzed represenLaLlves shall have
Lhe power Lo lssue compllance orders Lo glve effecL Lo Lhe labor
sLandards provlslons of Lhls Code and oLher labor leglslaLlon
based on Lhe flndlngs of labor employmenL and enforcemenL
offlcers or lndusLrlal safeLy englneers made ln Lhe course of
lnspecLlon. 1he SecreLary or hls duly auLhorlzed represenLaLlves
shall lssue wrlLs of execuLlon Lo Lhe approprlaLe auLhorlLy for Lhe
enforcemenL of Lhelr orders, excepL ln cases where Lhe
employer conLesLs Lhe flndlngs of Lhe labor employmenL and
enforcemenL offlcer and ralses lssues supporLed by
documenLary proofs whlch were noL consldered ln Lhe course of
lnspecLlon.

An order lssued by Lhe duly auLhorlzed represenLaLlve of Lhe
SecreLary of Labor and LmploymenL under Lhls ArLlcle may be
appealed Lo Lhe laLLer. ln case sald order lnvolves a moneLary
award, an appeal by Lhe employer may be perfecLed only upon
Lhe posLlng of a cash or sureLy bond lssued by a repuLable
bondlng company duly accredlLed by Lhe SecreLary of Labor and
LmploymenL ln Lhe amounL equlvalenL Lo Lhe moneLary award ln
Lhe order appealed from

(c) 1he SecreLary of Labor and LmploymenL may llkewlse order
sLoppage of work or suspenslon of operaLlons of any unlL or
deparLmenL of an esLabllshmenL when non-compllance wlLh Lhe
law or lmplemenLlng rules and regulaLlons poses grave and
workplace. WlLhln LwenLy-four hours, a hearlng shall be
conducLed Lo deLermlne wheLher an order for Lhe sLoppage of
work or suspenslon of operaLlons shall be llfLed or noL. ln case
Lhe vlolaLlon ls aLLrlbuLable Lo Lhe faulL of Lhe employer, he shall
pay Lhe employees concerned Lhelr salarles or wages durlng Lhe
perlod of such sLoppage of work or suspenslon of operaLlon.


(d) lL shall be unlawful for any person or enLlLy Lo obsLrucL,
lmpede, delay or oLherwlse render lneffecLlve Lhe orders of Lhe
represenLaLlves lssued pursuanL Lo Lhe auLhorlLy granLed under
Lhls ArLlcle, and no lnferlor courL or enLlLy shall lssue Lemporary
or permanenL ln[uncLlon or resLralnlng order or oLherwlse
assume [urlsdlcLlon over any case lnvolvlng Lhe enforcemenL
orders lssued ln accordance wlLh Lhls ArLlcle.

(e) Any governmenL employee found gullLy of vlolaLlon of, or
abuse of auLhorlLy, under Lhls ArLlcle shall, afLer approprlaLe
admlnlsLraLlve lnvesLlgaLlon, be sub[ecL Lo summary dlsmlssal
from Lhe servlce.

(f) 1he SecreLary of Labor and LmploymenL may, by approprlaLe
regulaLlons, requlre employers Lo keep and malnLaln such
employmenL records as may be necessary ln ald of hls vlslLorlal
and enforcemenL powers under Lhls Code.

LC, 129. kecovety of woqes, slmple mooey clolms ooJ otbet
beoeflts. - upon complalnL of any lnLeresLed parLy, Lhe 8eglonal
ulrecLor of Lhe ueparLmenL of Labor and LmploymenL or any of
Lhe duly auLhorlzed hearlng offlcers of Lhe ueparLmenL ls
empowered, Lhrough summary proceedlng and afLer due noLlce,
Lo hear and declde any maLLer lnvolvlng Lhe recovery of wages
and oLher moneLary clalms and beneflLs, lncludlng legal lnLeresL,
owlng Lo an employee or person employed ln domesLlc or
household servlce or househelper under Lhls Code, arlslng from
employer-employee relaLlons:

rovlded, 1haL such complalnL does noL lnclude a clalm for
relnsLaLemenL: rovlded furLher, 1haL Lhe aggregaLe money
clalms of each employee or househelper does noL exceed llve
Lhousand pesos (3,000.00). 1he 8eglonal ulrecLor or hearlng
offlcer shall declde or resolve Lhe complalnL wlLhln LhlrLy (30)
calendar days from Lhe daLe of Lhe flllng of Lhe same.

Any sum Lhus recovered on behalf of any employee or
househelper pursuanL Lo Lhls ArLlcle shall be held ln a speclal
deposlL accounL by, and shall be pald on order of, Lhe SecreLary
of Labor and LmploymenL or Lhe 8eglonal ulrecLor dlrecLly Lo
Lhe employee or househelper concerned. Any such sum noL pald
Lo Lhe employee or househelper because he cannoL be locaLed
afLer dlllgenL and reasonable efforL Lo locaLe hlm wlLhln a perlod
of Lhree (3) years, shall be held as a speclal fund of Lhe
ueparLmenL of Labor and LmploymenL Lo be used excluslvely for
Lhe amelloraLlon and beneflL of workers.

Any declslon or resoluLlon of Lhe 8eglonal ulrecLor or hearlng
offlcer pursuanL Lo Lhls provlslon may be appealed on Lhe same
grounds provlded ln ArLlcle 223 of Lhls Code, wlLhln flve (3)
calendar days from recelpL of a copy of sald declslon or
resoluLlon, Lo Lhe naLlonal Labor 8elaLlons Commlsslon whlch
shall resolve Lhe appeal wlLhln Len (10) calendar days from Lhe
submlsslon of Lhe lasL pleadlng requlred or allowed under lLs
rules.

1he SecreLary of Labor and LmploymenL or hls duly auLhorlzed
represenLaLlve may supervlse Lhe paymenL of unpald wages and
oLher moneLary clalms and beneflLs, lncludlng legal lnLeresL,
found owlng Lo any employee or househelper under Lhls Code.

LC, 217. IotlsJlctloo of tbe lobot Atbltets ooJ tbe commlssloo.

(a) LxcepL as oLherwlse provlded under Lhls Code, Lhe Labor
ArblLers shall have orlglnal and excluslve [urlsdlcLlon Lo hear and
declde, wlLhln LhlrLy (30) calendar days afLer Lhe submlsslon of
Lhe case by Lhe parLles for declslon wlLhouL exLenslon, even ln
Lhe absence of sLenographlc noLes, Lhe followlng cases lnvolvlng
all workers, wheLher agrlculLural or non-agrlculLural:
3. lf accompanled wlLh a clalm for relnsLaLemenL, Lhose cases
LhaL workers may flle lnvolvlng wages, raLes of pay, hours of
work and oLher Lerms and condlLlons of employmenL,
3. Cases arlslng from any vlolaLlon of ArLlcle 264 of Lhls Code,
lncludlng quesLlons lnvolvlng Lhe legallLy of sLrlkes and lockouLs,
and
6. LxcepL clalms for Lmployees CompensaLlon, Soclal SecurlLy,
Medlcare and maLernlLy beneflLs, all oLher clalms arlslng from
employer-employee relaLlons, lncludlng Lhose of persons ln
domesLlc or household servlce, lnvolvlng an amounL exceedlng
flve Lhousand pesos (3,000.00) regardless of wheLher
accompanled wlLh a clalm for relnsLaLemenL.

(b) 1he Commlsslon shall have excluslve appellaLe [urlsdlcLlon
over all cases declded by Labor ArblLers.
(c) Cases arlslng from Lhe lnLerpreLaLlon or lmplemenLaLlon of
collecLlve bargalnlng agreemenLs and Lhose arlslng from Lhe
lnLerpreLaLlon or enforcemenL of company personnel pollcles
shall be dlsposed of by Lhe Labor ArblLer by referrlng Lhe same
Lo Lhe grlevance machlnery and volunLary arblLraLlon as may be
provlded ln sald agreemenLs.

LC, 111. Attorneys fees.
(a) ln cases of unlawful wlLhholdlng of wages, Lhe culpable parLy
may be assessed attorneys fees equivalent to ten percent of the
amounL of wages recovered.
(b) lL shall be unlawful for any person Lo demand or accepL, ln
any [udlclal or admlnlsLraLlve proceedlngs for Lhe recovery of
wages, attorneys fees which exceed ten percent of the amount
of wages recovered.

Ck, 8ook III ku|e k Sec. 1. vlslLorlal power. 1he SecreLary of
Labor and LmploymenL or hls duly auLhorlzed represenLaLlves,
lncludlng Labor 8egulaLlons Cfflcers or lndusLrlal SafeLy
Lnglneers, shall have access Lo employer's records and premlses
aL any Llme of Lhe day or nlghL whenever work ls belng
underLaken Lhereln, and rlghL Lo copy Lherefrom, Lo quesLlon
any employee, and Lo lnvesLlgaLe any facL, condlLlon or maLLer
relevanL Lo Lhe enforcemenL of any provlslon of Lhe Code and of
any labor law, wage order or rules and regulaLlons lssued
pursuanL LhereLo.

Ck, 8ook III ku|e k Sec. 2. LnforcemenL power.
(a) 1he 8eglonal ulrecLor ln cases where employer relaLlons shall
exlsL, shall have Lhe power Lo order and admlnlsLer, afLer due
noLlce and hearlng, compllance wlLh Lhe labor sLandards
provlslons of Lhe Code and oLher labor leglslaLlons based on Lhe
flndlngs of Lhe Labor 8egulaLlon Cfflcers or lndusLrlal SafeLy
Lnglneers (Labor SLandard and Welfare Cfflcer) and made ln Lhe
course of lnspecLlon, and Lo lssue wrlLs of execuLlon Lo Lhe
approprlaLe auLhorlLy of Lhe enforcemenL of hls order. ln llne
wlLh Lhe provlslons of ArLlcle 128 ln relaLlon Lo ArLlcles 289 and
290 of Lhe Labor Code as amended ln cases, however, where Lhe
employer conLesLs Lhe flndlngs of Lhe Labor SLandards and
Welfare Cfflcers and ralses lssues whlch cannoL be resolved
wlLhouL conslderlng evldenLlary maLLers LhaL are noL verlflable ln
Lhe normal course of lnspecLlon, Lhe 8eglonal ulrecLor
concerned shall lndorse Lhe case Lo Lhe approprlaLe arblLraLlon
branch of Lhe naLlonal Labor 8elaLlons Commlsslon for
ad[udlcaLlon.

(b) 1he 8eglonal ulrecLor shall glve Lhe employer flfLeen (13)
days wlLhln whlch Lo comply wlLh hls order before lssulng a wrlL
of execuLlon. Copy of such order or wrlL of execuLlon shall
lmmedlaLely be furnlshed Lhe SecreLary of Labor and
LmploymenL.

Ck, 8ook III ku|e k Sec. 3. LnforcemenL power on healLh and
safeLy of workers.
(a) 1he 8eglonal ulrecLor may llkewlse order sLoppage of work
or suspenslon of operaLlons of any unlL or deparLmenL of an
esLabllshmenL when non-compllance wlLh Lhe law, safeLy order
or lmplemenLlng rules and regulaLlons poses grave and
workplace.
(b) WlLhln 24 hours from lssuance of Lhe order of sLoppage or
suspenslon, a hearlng shall be conducLed Lo deLermlne wheLher
Lhe order for Lhe sLoppage of work or suspenslon of operaLlon
shall be llfLed or noL. 1he proceedlngs shall be LermlnaLed wlLhln
sevenLy-Lwo (72) hours and a copy of such order or resoluLlon
shall be lmmedlaLely furnlshed Lhe SecreLary of Labor and
LmploymenL. ln case Lhe vlolaLlon ls aLLrlbuLable Lo Lhe faulL of
Lhe employer, he shall pay Lhe employees concerned Lhelr
salarles or wages durlng Lhe perlod of such sLoppage of work or
suspenslon of operaLlon.

Ck, 8ook III ku|e k Sec. 4. ower Lo revlew.
(a) 1he SecreLary of Labor and LmploymenL, aL hls own lnlLlaLlve
or upon requesL of Lhe employer and/or employee, may revlew
Lhe order of Lhe 8eglonal ulrecLor. 1he order of Lhe 8eglonal
ulrecLor shall be lmmedlaLely flnal and execuLory unless sLayed
by Lhe SecreLary of Labor and LmploymenL upon posLlng by Lhe
employer of a reasonable cash or sureLy bond as flxed by Lhe
8eglonal ulrecLor.
(b) ln ald of hls power of revlew, Lhe SecreLary of Labor and
LmploymenL may dlrecL Lhe 8ureau of Worklng CondlLlons Lo
evaluaLe Lhe flndlngs or orders of Lhe 8eglonal ulrecLor. 1he
declslon of Lhe SecreLary of Labor and LmploymenL shall be flnal
and execuLory

Ck, 8ook III ku|e k Sec. S. lnLerference and ln[uncLlons
prohlblLed. lL shall be unlawful for any person or enLlLy Lo
obsLrucL, lmpede, delay or oLherwlse render lneffecLlve Lhe
exerclse of Lhe enforcemenL power of Lhe SecreLary of Labor and
LmploymenL, 8eglonal ulrecLor or Lhelr duly auLhorlzed
represenLaLlves pursuanL Lo Lhe auLhorlLy granLed by Lhe Code
and lLs lmplemenLlng rules and regulaLlons, and no lnferlor courL
or enLlLy shall lssue Lemporary or permanenL ln[uncLlon or
resLralnlng order or oLherwlse assume [urlsdlcLlon over any case
lnvolvlng Lhe enforcemenL orders lssued ln accordance wlLh Lhe
Code. ln addlLlon Lo Lhe penalLles provlded for by Lhe Labor
Code, any governmenL employees found gullLy of vlolaLlon or
abuse of auLhorlLy, shall be sub[ecL Lo Lhe provlslons of
resldenLlal uecree no. 6.

SULkICk ACkAGING CCk V AkNLL 8ALAGSA SUkA

8ALLADAkLS L1 AL VS LAk VLN1UkLS (2009)
l: eLlLloners were employed by eak venLures as securlLy
guards. 1hey flled a complalnL agalnsL Lhe laLLer for
underpaymenL of wages.

P: 1he uCLL 8eglonal ulrecLor has [urlsdlcLlon ln Lhls case
pursuanL Lo ArL 128 of Lhe Labor Code. 8y Lhe naLure of Lhe
complalnL, slnce lL lnvolved underpaymenL of wages, and from
Lhe resulL of Lhe subsequenL lnspecLlon by Lhe uCLL, Lhe
auLhorlLy of Lhe laLLer came lnLo play regardless of Lhe amounL
of Lhe money clam lnvolved.

ML1LCkC VS CkLA1IVL CkLA1UkLS (2009)
l: eLlLloners worked for CreaLlve CreaLures as carpenLers,
arLlsLs, welders, Lasked Lo deslgn props and provlde sound
effecLs for Lhelr cllenL corporaLlons. 1hey flled for complalnLs
regardlng non-paymenL of nlghL dlfferenLlals, overLlme pay,
hollday pay, deducLlon from salarles, eLc wlLh Lhe uCLL-nC8.

P: 1he nL8C has [urlsdlcLlon over Lhe money clalms of Lhe
peLlLloners. 1he uCLL secreLary has [urlsdlcLlon Lo enforce
complalnLs wlLhln labor sLandards law under Lhe vlslLorlal
powers provlded ln ArL 128. 1he requlremenL of Lhe provlslons
LhaL Lhe money clalms be more Lhan 3000 do noL cover Lhe
vlslLorlal and enforcemenL powers of Lhe SecreLary of Labor or
hls duly auLhorlzed represenLaLlves.

IUkISDIC1ICN]CWLkS CF
uCLL 8eglonal
ulrecLor
Sec. of Labor (and
duly auLhorlzed
represenLaLlves)
Labor ArblLer
ArL. 129
-power Lo , Lo
hear and
declde any
maLLer lnvolvlng
Lhe recovery of
wages and oLher
moneLary clalms
and beneflLs.
-aggregaLe
money clalms of
each employee or
househelper does
noL exceed
3,000

-declslon may be
appealed Lo nL8C

ArL. 128 (a)
-powers of Sec. of
Labor and
auLhorlzed
represenLaLlves

ArL. 128 (b)
-power of Sec. of
Labor and
represenLaLlves
Lo lssue
1. compllance
orders
2. wrlLs of
execuLlon

ArL. 128 (c)
-power
LxCLuSlvL Lo Sec.
of Labor
3. lssue order
sLopplng work
ArL. 223 (former 217)
cases lnvolvlng all
workers, wheLher
agrlculLural or non-
agrlculLural:

1. unfalr labor
pracLlce cases,
2. 1ermlnaLlon
dlspuLes,
3. lf accompanled wlLh
a clalm for
relnsLaLemenL, Lhose
cases LhaL workers
may flle lnvolvlng
wages, raLes of pay,
hours of work and
oLher Lerms and
condlLlons of
employmenL,

4. Clalms for acLual,
moral, exemplary and
oLher forms of
damages arlslng from
Lhe employer-
employee relaLlons,

3. Cases arlslng from
any vlolaLlon of ArLlcle
264 of Lhls Code,
lncludlng quesLlons
lnvolvlng Lhe legallLy
of sLrlkes and
lockouLs, and

6.lnvolvlng an amounL
exceedlng 3,000
(LxcepL clalms for
Lmployees
CompensaLlon, Soclal
SecurlLy, Medlcare
and maLernlLy
beneflLs, all oLher
clalms arlslng from
employer-employee
relaLlons)


6. 1nIk1LLN1n MCN1n A -
D 8S1

kIkk, D 8S1
Sec. 1. SecLlon 1 of resldenLlal uecree no. 831 ls hereby
modlfled Lo Lhe exLenL LhaL all employers are hereby requlred Lo
pay all Lhelr rank-and-flle employees a 13Lh monLh pay noL laLer
Lhan uecember 24 of every year.

Sec. 2. 1he followlng employers are sLlll noL covered by .u. no.
831:
a. 1he CovernmenL and any of lLs pollLlcal subdlvlslons, lncludlng
governmenL-owned and conLrolled corporaLlons, excepL Lhose
corporaLlons operaLlng essenLlally as prlvaLe subsldlarles of Lhe
CovernmenL,
b. Lmployers already paylng Lhelr employees a 13Lh monLh pay
or more ln a calendar year or lLs equlvalenL aL Lhe Llme of Lhls
lssuance,
c. Lmployers of household helpers and persons ln Lhe personal
servlce of anoLher ln relaLlon Lo such workers, and
d. Lmployers of Lhose who are pald on purely commlsslon,
boundary, or Lask basls, and Lhose who are pald a flxed amounL
for performlng speclflc work, lrrespecLlve of Lhe Llme consumed
ln Lhe performance Lhereof, excepL where Lhe workers are pald
on plece-raLe basls ln whlch case Lhe employer shall granL Lhe
requlred 13Lh monLh pay Lo such workers. As used hereln,
workers pald on plece-raLe basls shall refer Lo Lhose who are
pald a sLandard amounL for every plece or unlL of work produced
LhaL ls more or less regularly repllcaLed, wlLhouL regard Lo Lhe
Llme spenL ln produclng Lhe same.

1he Lerm "lLs equlvalenL" as used on paragraph (b) hereof shall
lnclude ChrlsLmas bonus, mld-year bonus, cash bonuses and
oLher paymenLs amounLlng Lo noL less Lhan 1/12 of Lhe baslc
salary buL shall noL lnclude cash and sLock dlvldends, cosL of
llvlng allowances and all oLher allowances regularly en[oyed by
Lhe employee, as well as non-moneLary beneflLs. Where an
employer pays less than required 1/12th of the employees basic
salary, Lhe employer shall pay Lhe dlfference.

Sec. 3. 1he Labor Code dlsLlngulshes a rank-and-flle employee
from a managerlal employee. lL provldes LhaL a managerlal
employee ls one who ls vesLed wlLh powers of prerogaLlves Lo
lay down and execuLe managemenL pollcles and/or Lo hlre,
Lransfer, suspend, lay-off, recall dlscharge, asslgn or dlsclpllne
employees, or Lo effecLlvely recommend such managerlal
acLlons. All employees noL falllng wlLhln Lhls deflnlLlon are
consldered rank-and-flle employees. 1he above dlsLlncLlon shall
be used as gulde for Lhe purpose of deLermlnlng who are rank-
and-flle employees enLlLled Lo Lhe mandaLed 13Lh monLh pay.

Sec. S. 13Lh MonLh ay for CerLaln 1ypes of Lmployees. (a)
Lmployees ald by 8esulLs. Lmployees who are pald on plece
work basls are by law enLlLled Lo Lhe 13Lh monLh pay. Lmployees
who are pald a flxed or guaranLeed wage plus commlsslon are
also enLlLled Lo Lhe mandaLed 13Lh monLh pay, based on Lhelr
LoLal earnlngs durlng Lhe calendar year, l.e., on boLh Lhelr flxed
or guaranLeed wage and commlsslon.
(b) 1hose wlLh MulLlple Lmployers. CovernmenL employees
worklng parL Llme ln a prlvaLe enLerprlse, lncludlng prlvaLe
educaLlonal lnsLlLuLlons, as well as employees worklng ln Lwo or
more prlvaLe flrms, wheLher on full or parL Llme basls, are
enLlLled Lo Lhe requlred 13Lh monLh pay from all Lhelr prlvaLe
employers regardless of Lhelr LoLal earnlngs from each or all
Lhelr employers.
(c) rlvaLe School 1eachers. rlvaLe school Leachers, lncludlng
faculLy members of unlverslLles and colleges, are enLlLled Lo Lhe
requlred 13Lh monLh pay, regardless of Lhe number of monLhs
Lhey Leach or are pald wlLhln a year, lf Lhey have rendered
servlce for aL leasL one (1) monLh wlLhln a year.

Sec. 6. 13Lh MonLh ay of 8eslgned or SeparaLed Lmployee. An
employee who has reslgned or whose servlces were LermlnaLed
aL any Llme before Lhe Llme for paymenL of Lhe 13Lh monLh pay
ls enLlLled Lo Lhls moneLary beneflL ln proporLlon Lo Lhe lengLh of
Llme he worked durlng Lhe year, reckoned from Lhe Llme he
sLarLed worklng durlng Lhe calendar year up Lo Lhe Llme of hls
reslgnaLlon or LermlnaLlon from Lhe servlce. 1hus, lf he worked
only from !anuary up Lo SepLember hls proporLlonaLe 13Lh
monLh pay should be equlvalenL of 1/12 hls LoLal baslc salary he
earned durlng LhaL perlod. 1he paymenL of Lhe 13Lh monLh pay
may be demanded by Lhe employee upon Lhe cessaLlon of
employer-employee relaLlonshlp. 1hls ls conslsLenL wlLh Lhe
prlnclple of equlLy LhaL as Lhe employer can requlre Lhe
employee Lo clear hlmself of all llablllLles and properLy
accounLablllLy, so can Lhe employee demand Lhe paymenL of all
beneflLs due hlm upon Lhe LermlnaLlon of Lhe relaLlonshlp

Sec. 7. non-lncluslon ln 8egular Wage. 1he mandaLed 13Lh
monLh pay need noL be credlLed as parL of regular wage of
employees for purposes of deLermlnlng overLlme and premlum
pays, frlnge beneflLs lnsurance fund, Soclal SecurlLy, Medlcare
and prlvaLe reLlremenL plans.

Sec. 8. rohlblLlons agalnsL reducLlon or ellmlnaLlon of beneflLs.
noLhlng hereln shall be consLrued Lo auLhorlze any employer Lo
ellmlnaLe, or dlmlnlsh ln any way, supplemenLs, or oLher
employee beneflLs or favorable pracLlce belng en[oyed by Lhe
employee aL Lhe Llme of promulgaLlon of Lhls lssuance.


D 8S1 Sec 1. All employers are hereby requlred Lo pay all Lhelr
employees recelvlng a baslc salary of noL more Lhan 1,000 a
monLh, regardless of Lhe naLure of Lhelr employmenL, a 13Lh-
monLh pay noL laLer Lhan uecember 24 of every year.

D 8S1 Sec 2. Lmployers already paylng Lhelr employees a 13Lh-
monLh pay or lLs equlvalenL are noL covered by Lhls uecree.

DLN1LCn MANUIAC1UkING CCk. VS NLkC SUkA

AkCnILLLS MANUIAC1UkING CCk. V NLkC

l: Ceronlmo and oLhers worked for Archllles as laborers ln lLs
sLeel facLory. 1he company asked Lhem Lo remove Lhelr famllles
from Lhe bunkhouse because lL was conLrary Lo company pollcy.
The laborers did, but didnt go back Lo work anymore. Archllles
LermlnaLed Lhelr employmenL, laborers flled for lllegal dlsmlssal.
nL8C found LhaL laborers were valldly dlsmlssed buL ordered
Archllles Lo pay 13
Lh
monLh pay for year 1990.

P: ulsmlssal dld noL resulL ln Lhe forfelLure of the employees
rlghL Lo 13
Lh
monLh pay. 1hus pursuanL Lo u 831 and Sec 4 of
the formers IRR, Archilles should pay private respondents their
13
Lh
monLh pay.

aragraph 6 of Lhe 8evlsed Culdellnes on Lhe lmplemenLaLlon of
Lhe 13Lh MonLh ay Law (. u. 831) provldes LhaL "(a)n
employee who has reslgned or whose servlces were LermlnaLed
aL any Llme before Lhe paymenL of Lhe 13Lh monLh pay ls
enLlLled Lo Lhls moneLary beneflL ln proporLlon Lo Lhe lengLh of
Llme he worked durlng Lhe year, reckoned from Lhe Llme he
sLarLed worklng durlng Lhe calendar year up Lo Lhe Llme of hls
reslgnaLlon or LermlnaLlon from Lhe servlce . . . 1he paymenL of
Lhe 13Lh monLh pay may be demanded by Lhe employee upon
Lhe cessaLlon of employer-employee relaLlonshlp. 1hls ls
conslsLenL wlLh Lhe prlnclple of equlLy LhaL as Lhe employer can
requlre Lhe employee Lo clear hlmself of all llablllLles and
properLy accounLablllLy, so can Lhe employee demand Lhe
paymenL of all beneflLs due hlm upon Lhe LermlnaLlon of Lhe
relaLlonshlp."

C. kA1ICNALL

D 8S1 WnLkLAS CLAUSLS
WPL8LAS, lL ls necessary Lo furLher proLecL Lhe level of real
wages from Lhe ravage of worldwlde lnflaLlon, WPL8LAS, Lhere
has been no lncrease ln Lhe legal mlnlmum wage raLes slnce
1970, WPL8LAS, Lhe ChrlsLmas season ls an opporLune Llme for
socleLy Lo show lLs concern for Lhe pllghL of Lhe worklng masses
so Lhey may properly celebraLe ChrlsLmas and new ?ear.

D. AMCUN1 AND DA1L CI AMLN1

kIkk, D 8S1 Sec. 4. AmounL and paymenL of 13Lh MonLh ay
(a) Mlnlmum of Lhe AmounL. 1he mlnlmum 13Lh monLh pay
requlred by law shall noL be less Lhan one-LwelfLh of Lhe LoLal
baslc salary earned by an employee wlLhln a calendar year. lor
Lhe year 1987, Lhe compuLaLlon of Lhe 13Lh monLh pay shall
lnclude Lhe cosL of llvlng allowances (CCLA) lnLegraLed lnLo Lhe
baslc salary of a covered employee pursuanL Lo LxecuLlve Crder
178. L.C. no. 178 provldes, among oLher Lhlngs, LhaL Lhe 9.00
of Lhe dally CCLA of 17.00 for non-agrlculLural workers shall be
lnLegraLed lnLo Lhe baslc pay of covered employees effecLlve 1
May 1987, and Lhe remalnlng 8.00 effecLlve 1 CcLober 1987.
lor esLabllshmenLs wlLh less Lhan 30 employees and pald-up
caplLal of 300,000 or less, Lhe lnLegraLlon of CCLAs shall be as
follows: 4.30 effecLlve on 1 May 1987, 4.30 on 1 CcLober
1987, and 8.00 effecLlve 1 !anuary 1988.

1hus, ln Lhe compuLaLlon of Lhe 13Lh monLh pay for 1987, Lhe
CCLAs lnLegraLed lnLo Lhe baslc pay shall be lncluded as of Lhe
daLe of Lhelr lnLegraLlon. Where Lhe LoLal 17.00 dally CCLA was
lnLegraLed effecLlve 1 May 1987 or earller Lhe lncluslon of sald
CCLA as parL of Lhe of Lhe baslc pay for Lhe purpose of
compuLlng Lhe 13Lh monLh pay shall be reckoned from Lhe daLe
of acLual lnLegraLlon.

1he "baslc salary" of an employee for Lhe purpose of compuLlng
Lhe 13Lh monLh pay shall lnclude all remuneraLlons or earnlng
pald by Lhls employer for servlces rendered buL does noL lnclude
allowances and moneLary beneflLs whlch are noL consldered or
lnLegraLed as parL of Lhe regular or baslc salary, such as Lhe cash
equlvalenL of unused vacaLlon and slck leave credlLs, overLlme,
premlum, nlghL dlfferenLlal and hollday pay, and cosL-of-llvlng
allowances.

Powever, Lhese salary-relaLed beneflLs should be lncluded as
parL of Lhe baslc salary ln Lhe compuLaLlon of Lhe 13Lh monLh
pay lf by lndlvldual or collecLlve agreemenL, company pracLlce or
pollcy, Lhe same are LreaLed as parL of Lhe baslc salary of Lhe
employees.

(b) 1lme of aymenL. 1he requlred 13Lh monLh pay shall be
pald noL laLer Lhan uecember 24 of each year. An employer,
however, may glve Lo hls employees one half (x) of Lhe requlred
13Lh monLh pay before Lhe openlng of Lhe regular school year
and Lhe oLher half on before Lhe 24Lh of uecember of every
year. 1he frequency of paymenL of Lhls moneLary beneflL may be
Lhe sub[ecL of agreemenL beLween Lhe employer and Lhe
recognlzed/collecLlve bargalnlng agenL of Lhe employees.


1) 8ASIC WAGL]CCMMISSICNS

SCNGCCVS NLkC SUkA

8CIL 1AkLDA VSDLLA SLkNA SUkA

nIL. DULICA1CkS INCVS NLkC SUkA

IN1LkCCN1INLN1AL 8kCADCAS1ING CCkCkA1ICN VS
ANGANI8AN (2007)

l: lreneo was employed as AsslsLanL Ceneral Manager of l8C
unLll hls prevenLlve suspenslon. Pe reslgned from hls
employmenL and flled a complalnL agalnsL Lhe members of Lhe
8oard of AdmlnlsLraLors of l8C alleglng, among oLhers, non-
paymenL of hls unpald commlsslons. 1he case was dlsmlssed for
lack of [urlsdlcLlon. 1hereafLer, lreneo was elecLed by Lhe 8CA as
vlce-resldenL for MarkeLlng from whlch he evenLually reslgned.
Pe flled agalnsL l8C a complalnL for lllegal dlsmlssal, separaLlon
pay, reLlremenL beneflLs, unpald commlsslons, and damages.

P: Whlle Lhe flllng of Clvll Case could have lnLerrupLed Lhe
runnlng of Lhe Lhree-year prescrlpLlve perlod, lLs consequenL
dlsmlssal due Lo lack of [urlsdlcLlon effecLlvely canceled Lhe
Lolllng of Lhe prescrlpLlve perlod wlLhln whlch Lo flle hls money
clalm, leavlng lreneo ln exacLly Lhe same poslLlon as Lhough no
clvll case had been flled aL all. 1he runnlng of Lhe 3-
year prescrlpLlve perlod noL havlng been lnLerrupLed by Lhe
flllng of Lhe clvll case, lreneo's cause of acLlon already prescrlbed
3 years afLer hls cessaLlon of employmenL as AsslsLanL Ceneral
Manager. ConsequenLly, when lreneo flled hls complalnL for
lllegal dlsmlssal, separaLlon pay, reLlremenL beneflLs, and
damages ln !uly 24, 1996, hls clalm, clearly, had already been
barred by prescrlpLlon.

LL1kAN CALAM8A IACUL1 & LMLCLLS ASSCCIA1ICN
V NLkC (2008)
l: LeLran Calamba laculLy and Lmployees AssoclaLlon flled wlLh
Lhe 8eglonal ArblLraLlon 8ranch no. lv of Lhe nL8C a ComplalnL
agalnsL Coleglo de San !uan de LeLranCalamba, lnc. for collecLlon
of moneLary clalms due lLs members. Cne of lLs clalms ls LhaL ln
the computation of the thirteenth month pay of CSJLs academic
personnel, Lhe school dld noL lnclude as basls for compensaLlon
overloads.

H: Overload pay is not integrated with a teachers basic salary
for hls or her regular Leachlng load. lL ls noL legally feaslble Lo
consider payments for overload as part of a teachers regular or
baslc salary and Lherefore, lL cannoL be used for compuLaLlon of
LhlrLeenLh monLh pay.

2) SU8S1I1U1L AMLN1

IkAMANLIS IAkMS, INC. VS MCLL (1989)
l: 18 employees of lramanlls larms flled a complalnL agalnsL
Lhelr alleglng LhaL ln 1977 Lo 1979 Lhey were noL pald LCCLA
mlnlmum wage, 13Lh monLh pay, hollday pay, and servlce
lncenLlve leave pay. lramanlls, on Lhe oLher hand, ls asserLlng
LhaL Lhey have subsLanLlally complled wlLh Lhe requlremenL of
13
Lh
monLh paymenLs Lhrough yearly bonuses and oLher beneflLs
ln klnd and ln cash pursuanL Lo Sec 3(c) of u 831 whlch exempL
L8 from paylng 13
Lh
monLh pay when lLs equlvalenL has been
glven.

H: The term its equivalent as used in paragraph (c) hereof shall
lnclude ChrlsLmas bonus, mld-year bonus, proflL-sharlng
paymenLs and oLher cash bonuses amounLlng Lo noL less Lhan
1/12 of Lhe baslc salary buL shall noL lnclude cash and sLock
dlvldends, cosL of llvlng allowances and all oLher allowances
regularly en[oyed by Lhe employee, as well as non-moneLary
beneflLs.

8CNUS

A. NA1UkL

nIL. DULICA1CkS INC VS NLkC SUkA

8. DLIINI1ICN WnLN DLMANDA8LL,

LLAN1C CLkAMICS INC. VS LLAN1C CLkAMICS
LMLCLLS ASSCCIA1ICN (2010)

l: LepanLo Ceramlcs and lLs Lmployees AssoclaLlon enLered lnLo
a CBA enumerating Christmas bonuses as an existing beneflL,
practice of traditional rights which shall remain in full force
and effect. In 2002, the bonus given was a benefit of P600 and
an offer for cash advance of 1 monLh salary, as compared Lo Lhe
1lle 8edempLlon CerLlflcaLes worLh 3,000 glven as bonuses for
Lhe prevlous years. 1he assoclaLlon ob[ecLed, saylng LhaL lL has
been Lhe LradlLlonal pracLlce of Lhe company Lo granL bonuses ln
Lhe amounL of 3,000, elLher ln cash or ln company Llles.
1herefore Lhe 2002 bonus was a vlolaLlon of Lhe C8A.

P: 1he company ls obllged Lo glve Lhem bonus amounLlng Lo
3,000 because by vlrLue of lLs lncorporaLlon ln Lhe C8A, Lhe
ChrlsLmas bonus due Lo Lhe AssoclaLlon has become more Lhan
[usL an acL of generoslLy on Lhe parL of Lhe peLlLloner buL a
conLracLual obllgaLlon lL has underLaken.


LAS1LkN 1LLLCCMMUNICA1ICNS nIL., INC VS LAS1LkN
1LLLCCMS LMLCLLS UNICN (2012)

l: LasLern 1elecommunlcaLlons hlls., lnc. execuLed a C8A wlLh
LasLern 1elecoms Lmployees unlon whereln L1l conflrmed lLs
granL of 14
Lh
, 13
Lh
and 16
Lh
monLh bonuses Lo Lhe workers
pursuanL Lo an economlc provlslon ln Lhe C8A. 1he dlspuLe arose
when L1l declded Lo defer paymenL of Lhe 2003 14
Lh
, 13
Lh
and
16
Lh
month bonuses due to the companys deteriorating
flnanclal poslLlon.

P: AlLhough bonuses are generally acLs of llberallLy by Lhe glver,
whlch Lhe reclplenL has no rlghL Lo demand, a bonus becomes
demandable lf lL ls made parL of Lhe wage or salary of Lhe
employee, such as bonuses promlsed by Lhe employer wlLhouL
condlLlons. ln Lhls case, Lhe lncorporaLlon of 14
Lh
, 13
Lh
and 16
Lh

monLh bonuses, wlLhouL quallflcaLlon or condlLlons, ln Lhe C8A
conferred onLo L1l a conLracLual obllgaLlon Lo granL sald
bonuses

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LAW 113

Labor Standards Law

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