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CONDITIONS OF EMPLOYMENT
GR: Conditions of employment shall apply to ALL EMPLOYEES in ALL
ESTABLISHMENTS and UNDERTAKINGS, whether for profit or not (LC 82)
EXCEPTIONS:
1. Government employees, whether employed by the Natl Government or any of its
political subdivisions, including those employed in GOCCs
2. Managerial employees
a. Primary duty consists of the management of the establishment in which
they are employed or of a department or subdivision thereof
b. Customarily and regularly direct the work of two or more employees
c. Authority to hire/fire employees of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the promotion or any
other change of status of other employees are given particular weight
Officers/members of a managerial staff, if they perform the ff duties and
responsibilities:
d. Primary duty consists of the performance of work directly related to
management policies of their employer
e. Customarily and regularly exercise discretion and independent judgment
f. Regularly and directly assist a proprietor or a managerial employee whose
primary duty consists of the management of the establishment in which he
is employed or subdivision thereof; or execute under general supervision
work along specialized or technical lines requiring special training,
experience, or knowledge; or execute under general supervision, special
assignments and tasks
g. Who do not devote more than 20% of their hours worked ina w ork week
to activities which are not directly and closely related to the performance
of the work described above
3. Field personnel
4. Members of the family of the employer who are dependent on him for support
5. Domestic helpers
6. Persons in the personal service of another
7. Workers who are paid by results as determined by the SOLE in appropriate
regulations
GOVERNMENT EMPLOYEES fall under the Civil Service Law. Civil Service embraces all
branches, subdivisions, instrumentalities, and agencies of the Government, including GOCCs
with original charters
DOMESTIC WORKERS (RA 10361)
Domestic worker/kasambahay refers to any person engaged in domestic work within an
employment relationship such as, but not limited to, general househelp, nursemaid or
yaya, cook, gardener, or laundry person, but shall exclude any person who performs
domestic work only occasionally or sporadically and not on an occupational business
(Sec. 3[d])
EXCEPTION: Does not include children who are under foster family
arrangement, and are provided access to an education and given an allowance
incidental to education e.g. baon
Working children 15-18 years old (Sec. 3[h])
Employee shall provide for the following. They shall not be withheld as punishment or
disciplinary measures. (Sec. 6)

Board/lodging
Medical attendance
3 adequate meals a day
Humane sleeping arrangements
Right to education and training (Sec. 9)
Employer must provide opportunity to finish basic education and access to
alternative learning systems
Employment contract in a dialect understood by the kasambahay. Kasambahay must be
given a copy of her contract. It must include her duties and responsibilities, period of
employment, compensation, authorized deductions, hours of work and proportional
payment, loan agreement, termination of employment. DOLE shall develop a model
employment contract for domestic workers free of charge. In case of facility through a
PEA, PEA shall keep contracts. (Sec. 11)
Pre-employment requirements (Sec. 12)
Med cert
Barangay clearance
NBI clearance
Unlawful to employ a worker under 15 years old. Employment of underage workers shall
expose employer to liability under RA 7610. Working children entitled to minimum
wage. (Sec. 16)
8 hours of rest everyday (Sec. 20); 24 consecutive hours of rest in a day (Sec. 21)
Minimum wage set at P2,500 in NCR, P2000 in first class municipalities, P1500 in other
municipalities
Payment of wages at least once a month, with a pay slip (Secs. 25-26)
SIL after one year, not convertible to cash (Sec. 29)
After one month of service, he/she shall be eligible for benefits such as SSS, PhilHealth,
PAG-IBIG. Premium payments shouldered by employer. (Sec. 30)
Complaints for abuse lodged with DSWD
Contract; how terminated (33-34)
Verbal/emotional abuse by anyone in the household
Inhuman treatment/physical abuse
Commission of a crime/offense against the domestic worker
Violation of employer of terms and conditions of contract
Any disease prejudicial to the health of the domestic worker
Contract; how terminated (employer; 34)
Misconduct or wilful disobedience
Gross or habitual neglect
FWB
Commission of a crime/offense
Violation of DH of T&C of employment contract
Any disease prejudicial to the household
OCAnalogous

HOURS OF WORK
Shall not exceed 8 hours (LC 83)
HOSPITALS and CLINICS

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GR: Health personnel in cities and municipalities with a population of at least 1M/hospitals
and clinics with a bed capacity of at least 10- shall hold regular office hours for 8 hours a day,
5 days a week, exclusive of time for meals (LC 83)
EXCEPTION: Where the exigencies of the service require that such personnel work for six
days or 48 hours, in which case they shall be entitled to an additional compensation of AT
LEAST 30% of their regular wage for work on the sixth day
HEALTH PERSONNEL: Includes physicians, nurses, nutritionists, dietitians, pharmacists,
social workers, laboratory technicians, paramedical technicians, psychologists, midwives,
attendants, and all other hospital or clinic personnel.
HOURS WORKED (LC 84)
Shall include
(a) All time during which an employee is required to be on duty or be at a prescribed
workplace
(b) All time during which an employee is suffered or permitted to work
(c) Rest period of short duration during working hours
MEAL PERIODS (LC 85)
Subject to such regulations as the SOLE may prescribe, it shall be the duty of every employer
to give his employees not less than 60 MINUTES time-off for their regular meals.
NIGHT-SHIFT DIFFERENTIAL: +10% for each hour of work performed between 10PM
and 6AM (LC 86)
OVERTIME WORK: (LC 87)
Regular day: Regular wage + AT LEAST 25% thereof
Holiday/rest day: Rate of first eight hours on a holiday/rest day (+25%) +30%
UNDERTIME NOT OFFSET BY OVERTIME (LC 88)
Undertime work not offset by overtime; permission given to employee to go on leave on some
other day of the week shall not exempt employer from paying additional compensation
required in this Chapter.
GR: Employer cannot force employee to do overtime; must be mutually consented upon
EXCEPTIONS (LC 89):
a. War/national or local emergency has been declared by Congress of Chief Executive
b. Necessary to prevent loss of life or property in case of imminent danger to public
safety due to an actual or impending emergency in the locality caused by serious
accidents e.g. fire, flood, typhoon, earthquake, epidemic, or other disaster or
calamity
c. Urgent work to be performed on machines, installations, or equipment to avoid
serious loss/damage to the employer or some other cause of similar nature
d. Work necessary to prevent loss or damage to perishable goods
e. Completion/continuation of the work started before the 8th hour necessary to prevent
serious obstruction or prejudice to the business or operations of the employer.
COMPUTATION of ADDITIONAL COMPENSATION: Regular wage of an employee
shall include the cash wage only, without deduction on account of facilities provided by the
employer.

PRINCIPLES IN DETERMINING HOURS WORKED (Sec. 4, Omnibus Rules)

1. All hours worked which the employee is required to give his employer, regardless of
whether or not such hours are spent in productive labor or involve physical/mental
exertion
2. An employee need NOT leave the premises of the work place in order that his rest period
shall not be counted, it being enough he stops working, may rest completely, and may
leave his work place to go elsewhere, whether within or outside the premises of the work
place
3. If the work performed was necessary, or it benefitted the employer, or the employee could
not abandon his work at the end of his normal working hours because he had no
replacement, all time spent for such work shall be considered as hours worked, if the
work was with the knowledge of his employer or immediate supervisor.
4. Time during which an employee is inactive by reason of interruptions in his work beyond
his control shall be considered working time either if the imminence of the resumption of
work requires the employees presence at the place of work or if the interval is too brief
to be utilized effectively and gainfully in the employees own interest.
WAITING TIME: Shall be considered as working time if waiting is an integral part of his
work or the employee is required or engaged by the employer to wait; Employee required to
remain on call in the employers premise or so close thereto that he cannot use the time
effectively and gainfully for his own purpose shall be considered as working while on call. An
employee who is not required to leave word at his home or with company officials where he
may be reached is not working while on call.
LECTURES, MEETINGS, TRAINING PROGRAMS (Omnibus Rules)
GR: Counted as working time
EXCEPTIONS: If the ff conditions are met
a. Attendance is outside of the employees regular working hours
b. Attendance is in fact voluntary
c. Employee does not perform any productive work during such attendance
MEAL and REST PERIODS (Omnibus Rules)
GR: Regular meals cannot be less than 1 hour
EXCEPTIONS: In cases when a meal period of not less than 20 minutes may be given by the
employer, provided that such shorter meal period is credited as compensable hours worked of
the employee
a. Where work is non-manual in nature or does not involve strenuous physical exertion
b. Establishment regularly operates NOT less than 16 hours a day
c. In case of actual/impending emergencies or there is urgent work to be performed on
machineries, equipment, or installations to avoid serious loss which employer would
otherwise suffer
d. Work is necessary to prevent serious loss of perishable goods

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NIGHT WORK
Every employee shall be paid a night shift differential of not less than 10% of his regular wage
for each hour performed between 10PM and 6AM
GR: Applies to all employees
EXCEPTIONS:
a. Government employees
b. Retail and service establishments regularly employing not more than 5 workers
c. Domestic helpers and persons in the personal service of another
d. Managerial employees as defined in Book 3
e. Field personnel
If NIGHT WORK + OVERTIME: Regular Wage + 25% + 10% of each hour worked between
10PM 6AM
If NIGHT WORK + SCHEDULED REST DAY/SPECIAL HOLIDAY: (Regular Wage + 30%)
+ 10% of amount for each hour of work performed
If NIGHT WORK + REGULAR HOLIDAYS: Twice the rate + 10%
Relation to Agreements: Nothing shall justify the employer in withdrawing or reducing any
benefits, supplements or payments as provided in existing individual or collective agreements
or employer practice or policy.
REST PERIODS and HOLIDAYS
REST PERIODS
Duty of employer to provide his employees a rest period of not less than 24 consecutive
hours after every six consecutive normal work days (91)
Employer shall determine and schedule the weekly rest day of his employees subject to
CBA and to such rules and regulations as the SOLE may provide.
EXCEPTION: Employer shall respect the preference of employees as to their
weekly rest day when such preference is based on religious grounds.

EXCEPTION: Where the choice of the employee as to his rest day

based on religious grounds will result in serious prejudice or
obstruction to the operations of the undertaking and the employer
cannot normally be expected to resort to other remedial measures,
they may schedule weekly rest day for at least two days in a month
Schedules of rest day must be made known through written notices (Omnibus Rule)
When employer may require work on a rest day (LC 92)
GR: Employer cannot force employee to work on a rest day
EXCEPTIONS:
a. Where an employee volunteers to work on his rest day under other circumstances
(must be expressed in writing)
b. Actual/impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic, or other disaster or calamity to prevent loss of life and
property, or imminent danger to public safety
c. Urgent work to be performed on the machinery, equipment, installation, to avoid
serious loss which the employer would otherwise suffer
d. Event of abnormal pressure of work due to special circumstances, where employer
cannot ordinarily be expected to resort to other measures
e. Prevent loss/damage to perishable goods

f.

Nature of work requires continuous operations and stoppage of work may result in
irreparable injury or loss to the employer
g. Other analogous/similar circumstances similar to the foregoing as determined by the
SOLE
COMPENSATION for REST DAY, SUNDAY, or HOLIDAY WORK
Scheduled rest day: AT LEAST +30%. An employee shall be entitled to such additional
compensation for work performed on Sunday only when it is his established rest day.
When nature of work is such that employee has no regular work days and no regular rest days:
AT LEAST +30% of regular wage for work performed on Sundays and holidays
Work performed on special holiday: AT LEAST+30%
Work performed on special holiday AND rest day: AT EAST 50%
When CBA stipulates higher rate: Higher rate
HOLIDAYS
HOLIDAY PAY
GR: Every worker shall be paid his regular daily wage during regular holidays (LC 94)
EXCEPTION: In retail and service establishments regularly employing < 10 workers
Employer may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to twice his regular rate
The ff are REGULAR HOLIDAYS:
New Years Day (January 1)
Maundy Thursday
Good Friday
Araw ng Kagitingan (April 9)
Labor Day (May 1)
Araw ng Kalayaan (June 12)
July 4
Bonerfacial Day (November 30)
Christmas (December 25)
Rizal Day (December 30)
Eidl Fitr
Eidl Adha
SPECIAL HOLIDAZE
Ninoy Aquino Day (Monday nearest August 21)
All Saints Day (November 1)
Last Day of the year (December 31)
COMPENSATION for HOLIDAY WORK
Special Holiday: +3-%
Special Holiday Falling on a Rest Day: +50%
Regular Holiday: +100%
Regular Holiday Falling On a Rest Day: +160%
Double Regular Holiday: +200%
TEMPORARY or PERIODIC SHUTDOWN
Still compensated
TEMPORARY CESSATION of WORK
May not be paid by employer
HOLIDAY PAY of CERTAIN EMPLOYEES
TEACHERS

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Private school teachers, including faculty members of colleges and universities, may not
be paid for the regular holidays during semestral vacations. They shall be paid for the
regular holidays during Christmas vacation.
EMPLOYEES PAID BY RESULTS
Holiday pay shall not be less than his average daily earnings for the last seven actual
working days preceding the regular holiday. In no case shall the holiday pay be less than
the applicable statutory minimum wage rate.
SEASONAL WORKERS
May not be paid the required the holiday pay during the offseason

WAGES
The remuneration or earnings, HOWEVER DESIGNATED, capable of being expressed
in terms of money, WHETHER FIXED pr ASCERTAINED on a time, task, piece, or
commission basis, or other method of calculating the same, which is payable by an
employer to an employee under a written or unwritten contract of employment for work
done or to be done, or for services rendered or to be rendered and includes the fair and
reasonable value, as determined by the SOLE, of board, lodging, or other facilities
customarily furnished by the employer to the employee.
Fair reasonable value shall not include any profit to the employer, or to any
person affiliated with the employer.
Title on wages does not apply to farm tenancy or leasehold, domestic service, and
persons working in their respective homes in needle work or in any cottage industry duly
registered in accordance with law.
MINIMUM WAGE RATES
Shall be those prescribed by the Regional Tripartite Wages and Productivity Boards (LC
99)
Employee benefits or supplements shall not be diminished (LC 100)
SOLE shall regulate payment of wages by results, including pakyao, piecework, and
other non-time work, in order to ensure the payment of fair and reasonable wage rates,
preferable through TIME AND MOTION STUDIES or in consultation with
representatives of workers and employers organizations.
PAYMENT OF WAGES
FORMS
No employer shall pay the wages of an employee by means of promissory notes,
vouchers, coupons, tokens, tickets, chits, or any object other than elgal tender, even when
expressly requested by the employee
Payment by check or money order shall be allowed when such manner of payment is
customary on the date of the effectivity of this Code, or is necessary
BECAUSE of SPECIAL CIRCUMSTANCES as specified in appropriate
regulations to be issued by the SOLE or
As stipulated in a CBA
TIME OF PAYMENT: At least once every two weeks or twice a month at intervals not
exceeding 16 days. If on account of force majeure or circumstances beyond the employers
control, payment of wages on or within the time herein provided cannot be made, the

employer shall pay the wages immediately after such FM or circumstances have ceased. No
employer shall make payment with less frequency than once a month
Payment of wages of employees engaged to perform a task which cannot be completed in
two weeks shall be subject to the ff conditions, IN THE ABSENCE OF A CBA
Payments made at intervals not exceeding 16 days, in proportion to amount of
work completed
Final settlement is made upon completion of the work
PLACE OF PAYMENT: Made at or near the place of undertaking (LC 104)
EXCEPT: As otherwise provided by such regulations as the SOLE may prescribe under
conditions to ensure greater protection of wages
DIRECT PAYMENT of WAGES (LC 105)
GR: Wages shall be paid directly to the workers to whom they are due
EXCEPTIONS:
1. In cases of FM rendering such payment impossible or under other special
circumstances to be determined by the SOLE in appropriate regulations, in which
case, the worker may be paid through another person under written authority given
by the worker for the purpose
2. Where the worker has died. Employer may
a. Pay the wages to the heirs without necessity of intestate proceedings
b. Claimants shall execute an affidavit attesting to their relationship to the
deceased and that they are heirs, to the exclusion of other persons. If
minors, affidavit shall be executed by guardian or next of kin.
c. Affidavit shall be presented through the SOLE or his representative.
CONTRACTOR or SUBCONTRACTOR (LC 106)
When an employer enters into a contract with another person for the performance of the
formers work the employees of the contractor and of the latters subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
If contractor/subcontractor fails to pay wages of his employees, EMPLOYER shall be
SOLIDARILY LIABLE with his contractor or subcontractor to such employees to the extent
of the work performed under the contract, in the same manner and extent that he is liable to
employees directly employed by him.
LABOR-ONLY CONTRACTING: Where the person supplying workers to an employer
does not have substantial capital or investment in the form of tools, equipment, machineries,
work premises, among others, and the workers recruited and placed by such persons are
performing activities which are directly related to the principal business of such employer. In
such cases, the person or intermediary shall be considered merely as an agent of the employer
who shall be responsible to the workers in the same manner and extent as if the latter were
directly employed by him.
INDIRECT EMPLOYER: Provisions in 106 shall apply to any person, partnership,
association, or corporation which, not being an employer, contracts with an independent
contractor for the performance of any work, task, job, or project.
POSTING OF BOND: Employer/indirect employer may require the contractor or
subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the
bond will answer for the wages due the employees should the contractor or subcontractor, as
the case may be, fail to pay the same.
SOLIDARY LIABILITY: The provisions of existing laws to the contrary notwithstanding,
every employer or indirect employer shall be held responsible with his contractor or

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subcontractor for any violation of any provision of this Code. For purpose of determining the
extent of their civil liability under Wages, they shall be considered as direct employers.
WORKER PREFERENCE IN CASE OF BANKRUPTCY: In the event of bankruptcy or
liquidation of an employers business, his workers shall enjoy first preference as regards their
wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such
unpaid wages and monetary claims shall be paid in full before claims of the government and
other creditors may be paid.
WAGE DEDUCTION (113): No employer, in his own behalf or in behalf of any person, shall
make any deduction from the wages of his employees.
EXCEPT:
a. In cases where worker is insured with his consent by the employer, and the
deduction is to recompense the employer for the amount paid by him as premium on
the insurance.
b. For union due, in case where the right of the worker or his union to check-off has
been recognized by the employer or authorized in writing by the individual worker
concerned
c. Cases where employer is authorized by the SOLE
OMNIBUS RULES PROVISIONS ON WAES
CASH WAGE: The minimum wage rates prescribed in Sec. 1 shall be basic, cash wages,
without deducting therefrom whatever benefits, supplements, or allowances which the
employees enjoy free of charge aside from the basic pay. The employer may provide
subsidized meals and snacks to his employees provided the subsidy shall nto be less than 30%
of the fair and reasonable value of such facilities. In such case, the employer may deduct from
the wages of employee not more than 70% of the value of the meals and snacks enjoyed by the
employees, provided that such deduction is with the written authorization of the employees
concerned.
FACILITIES: The fair and reasonable facilities is hereby determined to be the COST OF
PERATION and MAINTENANCE, INCLUDING DEPRECIATION + REASONABLE
ALLOWANCE (not more than 5 1/2 % interest on the depreciated amount of capital invested
by the employer)
PAYMENT of WAGES
Manner of Wage Payment
GR: Wages shall be paid in legal tender. The use of tokens, promissory notes, vouchers,
coupons, or any other form alleged to represent legal tender is absolutely prohibited even
when expressly requested by employee.
EXCEPTIONS:
a. Check allowed where such manner of wage payment is customary on the date of
the effectivity of the Code, where it is so stipulated in a collective agreement, or
where the ff conditions are met:
a. There is a bank or other facility for encashment within a radius of one KM
from the workplace
b. Employer/his agents or reps do not receive any pecuniary benefit directly
or indirectly from the arrangement
c. Employees are given reasonable time during banking hours to withdraw
their wages from the bank which time shall be considered as compensable
hours worked if done during work hours

d.

Payment by check is with written consent of employees concerned if there

is no collective agreement authorizing the payment of wages by bank
checks
TIME of PAYMENT
GR: Not less than once every 2 weeks or twice a month at intervals not exceeding 16 days
EXCEPTIONS:
a. Unless payment cannot be made with such regularity due to force majeure or
circumstances beyond the employers control in which case the employer shall pay
the wages immediately after such FM or circumstances have ceased.
b. In cases of payment of wages by results involving work which cannot be finished in
two weeks, payment shall be made at intervals not exceeding 16 days in proportion
to the amount of work completed. Final settlement made immediately upon
completion of the work.
PLACE of PAYMENT
GR: At or near the palce of undertaking.
EXCEPTIONSL
a. When payment cannot be effected at/near the place of work by reason of the
deterioration of peace and order conditions/by reason of actual/impending
emergencies caused by fire, flood, epidemic, or other calamity rendering payment
impossible
b. When employer provides free transportation to employees back and forth
c. Any analogous circumstances; time spent by employees in collecting wages shall be
considered as compensable hours worked
DIRECT PAYMENT of WAGES
GR: Payment made to employee
EXCEPTION:
1. Employer is authorized in writing by employee to pay his wages to a member of his
family
2. Payment to another person of any part of the employees wages is authorized by
existing law, including payments for the insurance premiums of the employee and
union dues where the right to check-off has been recognized by the employer in
accordance with a collective agreement or authorized in writing by the individuall
employees concerned
3. IN case of death of the employee
WAGES of DECEASED EMPLOYEE
The payment of the wages of a deceased employee shall be made to his heirs.
DEDUCTION for LOSS or DAMAGE
Where the employer is engaged in a trade, occupation, or business where the practice of
making deductions or requiring deposits is recognized to answer for the reimbursement of loss
or damage to tools, materials, or equipment supplied by the employer to the employee, the
employer may make wage deductions or require the employees to make deposits from which
deductions shall be made, subject to the ff conditions:
a. Employee concerned is clearly showed to be responsible for the loss/damage
b. Employee is given reasonable opportunity to show cause why deduction should be
made
c. The amount of such deduction is fair and reasonable and shall not exceed the actual
loss or damage

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d.

Deduction from the wages of the employee does not exceed 20 percent of the
employees wages in a week
PROVISIONS on SUBCONTRACTING
PROHIBITIONS
a. Contracting out of a job, work, or service when not done in good faith and not
justified by the exigencies of the business and the same results in the termination of
regular employees and reduction of work hours or reduction or splitting of the
bargaining unit
b. Contracting out of work with a cabo (A person or group of persons or to a labor
group which, in the guise of a labor organization, supplies workers to an employer,
with or without any monetary or other consideration, whether in the capacity of an
agent of the employer or as an ostensible independent contractor
c. Taking undue advantage of the economic situation or lack of bargaining strength of
the contractual employee, or undermining his security of tenure or basic rights, or
circumventing the provisions of regular employment, in any of the ff circumstances
a. In addition to his assigned functions, requiring the contractual employee to
perform functions which are currently being performed by the regular
employees of the principal or of the contractor or subcontractor
b. Requiring him to sign, as a precondition to employment, or continued
employment, ante-dated resignation letter, a blank payroll, a waiver of
labor standards including minimum wages and social or welfare benefits;
or a quitclaim releasing the principal, contractor or subcontractor from any
liability as to payment of future claims
c. Requiring him to sign a contract fixing the period of employment to a term
shorten than the term of the contract between the principal and the
contractor or subcontractor, unless the latter contract is divisible into
phases for which substantially different skills are required and this is made
known to the employee at the time of engagement
d. Contracting out of a job, work or service through an in-house agency which refers to
a contractor or subcontractor engaged in the supply of labor which is owned,
managed, or controlled by the principal and which operates solely for the principal
e. Contracting out of a job, work, or service directly related to the business or
operation of the principal by reason of a strike or lockout whether actual or
imminent
f. Contracting out of a job, work, or service being performed by union members when
such will interfere with, restrain or coerce employees in the exercise of their rights
to self organization
RIGHTS of CONTRACTUAL WORKERS
Consistent with Sec. 7, the contractual employee shall be entitled to all the rights and
privileges due a regular employee as provided for in the LC, as amended, to include the ff:
a. Safe and healthful working conditions
b. Labor standards such as SIL, rest days, OT pay, holiday pay, 13th month pay
c. Social security and welfare benefits
d. SO, CB, PCA
e. ST
WAGE STUDIES, WAGE AGREEMENTS, and WAGE DETERMINATION
There is hereby created a National Wages and Productivity Commission, attached to the
DOLE. Assisting them are the Regional Tripartite Wages and Productivity Boards

NWPC composed of
a. SOLE as ex-officio chairman
b. NEDA Director General as ex-officio vice chair
c. 2 members each from workers and employers sectors who shall be appointed by
the President of the PH upon recommendation of the SOLE
RTWPB works hand-in-hand with the Bureau of Labor and Employment Statistics of the
DOLE.
WAGE DISTORTION: A situation where an increase in prescribed wage rates results in the
elimination or severe contraction of intentional quantitative difference in wage or salary rates
between and among employee groups in an establishment as to effectivel obliterate the
distinctions embodied in such wage structure based on skills, length of service, or other logical
bases of differentiation.
In case of wage distortions:
a. Employer and union shall negotiate to correct distortions
b. In case of absence of CBA or recognized labor unions, employers and workers shall
endeavour to correct such distortions
RA 6727
Suggested formula in determining equivalent monthly statutory minimum wage rates
Applicable daily wage rate x 390.90 days
In case of workers paid by results,
Previous AMW x 100%
Existing rate/piece x % increase = increase in rate/piece
Existing rate/piece + increase in rate/piece
REVISES RULES ON 13th MONTH PAY LAW
Pay not later than December 24

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WORKING CONDITIONS for SPECIAL GROUPS of EMPLOYEES

WOMEN
RA 7877
Work, education or training-related sexual harassment is committed by an employer,
employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach,
trainor, or any other person who, having authority, influence or moral ascendancy over another
in a work or training or education environment, demands, requests or otherwise requires any
sexual favor from the other, regardless of whether the demand, request or requirement for
submission is accepted by the object of said Act
In a work-related or employment environment, sexual harassment is committed when
a. Sexual favour is made as a condition in the hiring or in the employment, reemployment, or continued employment of said individual, or in granting said
individual favourable compensation, terms or conditions, privileges, etc
b. Above acts would impair employees rights or privileges under existing labor laws
c. Above acts would result in an intimidating, hostile, or offensive employment for the
employee
Stipulation Against Marriage: It shall be unlawful for an employer to require as a condition
of employment or continuation of employment that a woman employee shall not get married,
or ti stipulate expressly or tacitly that upon getting married, a woman employee shall be
deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage
Classification of Certain Women Workers: Any woman who is permitted or suffered to
work, with or without compensation, in any night club, cocktail lounge, massage clinic, bar or
similar establishments under the effective control or supervision of the employer for a
substantial period of time as determined by the SOLE, shall be considered as an employee of
such establishment for purposes of labor or social legislation.
OMNIBUS RULES
Minimum age
GR: 15 yrs
Exceptions: Children below 15y/o may be allowed to work under the direct responsibility of
their parents or guardians in any non-hazardous undertaking where the work will not in any
way interfere with their schooling. Children shall not be considered as employees of the
employers or their parents or guardians.
Maternity Leave Benefits: Every employer shall grant to a pregnant woman employee who
has rendered an aggregate service of at least six month for the last 12 months immediately
preceding the expected date of delivery/abortion/miscarriage, ML of at least two weeks

HEALTH, SAFETY, and SOCIAL WELFARE BENEFITS

First Aid treatment: Every employer shall keep in his establishment such first-aid medicines
and equipment as the nature and conditions of work may require.
Emergency Medical and Dental Services
Population
Required Service(s)
50-200
Registered nurse, except when employer does
not maintain hazardous workplaces, in which
case, services of a graduate first-aider shall be
provided for the protection of workers
200-300
Full-time registered nurse, a part-time
physician and dentist, and emergency clinic
300-above
Full-time physician, dentist, full-time
registered nurse, a dental clinic, an infirmary,
emergency hospital with one bed capacity for
every 100 employees
In cases of hazardous workpalces, no
employer shall engage the services of a
physician or a dentist who cannot stay in the
premises of the establishment for at least two
hours, in case of those engaged on part-time
basis, and not less than 8 in case of those
employed on fulltime basis
In cases of non-hazardous workplaces,
physician and dentist on retainer basis

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b.
EMPLOYEE CLASSIFICATION
278: The provisions of this Title shall apply to all establishments or undertakings, whether for
profit or not.
Regular and Casual Employment
The provisions of written agreement to the contrary notwithstanding and regardless of the oral
agreement of the parties, an employment shall be deemed to be regular where the employee
has been engaged to perform activities which are usually NECESSARY or DESIRABLE in
the USUAL BUSINESS or TRADE of the EMPLOYER, except
a. Where the employment has been fixed for a specific project or undertaking the
completion or termination of which has been determined at the time of the
engagement of the employee
b. Where the work or service to be performed is seasonal in nature and the employment
is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph;
PROVIDED, that any employee who has rendered at least one year of service, whether such
service is continuous or broken, shall be considered as regular employee with respect to the
activity in which he is employed and his employment shall continue while such activity exists.
Probationary Employment
Probationary employment shall not exceed six (6) months from the date the employee started
working, unless it is covered by an apprenticeship agreement stipulating a longer period. The
services of an employee who has been engaged on a probationary basis may be terminated for
a just cause or when he fails to qualify as a regular employee in accordance with reasonable
standards made known by the employer to the employee at the time of his engagement. Any
employee who is allowed to work after a probationary period shall be considered as a regular
employee.
WHO ARE CONSIDERED REGULAR EMPLOYEES:
a. Where employee has been engaged to perform activities which are usually necessary
or desirable in the usual business or trade of the employer
b. A casual employee who has rendered at least one year of service, whether such
service is continuous or broken, with respect to the activity in which he is employed
c. Project employee where completion or termination of such project has not been
determined in the contract
d. Probationary worker allowed to work after a probationary period
e. Probationary worker to whom the standards for qualifications are not made known
OMNIBUS RULES
Casual employment is where an employee is engaged to perform a job, work, or service
which is MERELY INCIDENTAL to the business of the employer, and such job, work, or
services for a definite period made known to the employee at the time of engagement.
Notwithstanding the foregoing distinctions, every employee shall be entitled to the rights and
privileges and shall be subject to the duties and obligations, as may be granted by law to
regular employees during the period of their actual employment.
Probationary Employment shall be governed by the ff rules:
a. Where the work for which the employee has been engaged is learnable or
apprenticeable in accordance with the standards prescribed by the DOLE, the period

c.

d.

of probationary employment shall be limited to the authorized learnership or

apprenticeship period, whichever is applicable
Where the work is neither learnable nor apprenticeable, the period of probationary
employment shall not exceed 6 months reckoned from the date the employee
actually started working
The services of any employee who has been engaged on probationary basis MAY
BE TERMINATED ONLY FOR A JUST or AUTHORIZED CAUSE, when he fails
to qualify as a regular employee in accordance with reasonable standards prescribed
by the employer
In all cases of probationary employment, the employer shall make known to the
employee the standards under which he will qualify as a regular employee at the
time of his engagement. Where no standards are made known to the employee at that
time, he shall be deemed a regular employee

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TERMINATION of EMPLOYMENT
Subject to the constitutional right of workers to security of tenure and their right to be
protected against dismissal except for a just and authorized cause and without prejudice to the
requirement of notice under LC 283, the employer shall furnish the worker whose employment
is sought to be terminated a
a. Written notice containing a statement of the causes for termination
b. An ample opportunity to be heard and to defend himself with the assistance of his
representative if he so desires in accordance with company rules and regulations
Any decision taken by the employer shall be without prejudice to the right of the worker to
contest the validity or legality of his dismissal by filing a complaint with the regional branch
of the NLRC.
The burden of proving that the termination was for a valid/authorized cause shall rest on the
employer.
The SOLE may suspend the effects of the termination pending resolution of the dispute in the
event of a prima facie finding by the appropriate official of the DOLE before whom such
dispute is pending that the termination may cause a serious labor dispute or is in
implementation of a mass lay-off.
Security of Tenure
In cases of regular employment, the employer shall not terminate the services of an employee
except for a just cause or when authorized by this Title, An employee who is unjustly
dismissed from work shall be entitled to reinstatement without loss of seniority rights and
other privileges and to his full backwages, inclusive of allowances, and to his other benefits or
their monetary equivalent computed from the time his compensation was withheld from him
up to the time of his actual reinstatement.
Termination of Probationary Employees
a. Just causes
b. Failure to qualify as a regular employee in accordance with reasonable standards
made known by the employer to the employee at the time of his engagement
TERMINATION BY EMPLOYER
JUST CAUSES
a. Serious misconduct or wilful disobedience by the employee of the lawful orders of
his employer or representative in connection with his work
b. Gross and habitual neglect by the employee of his duties
c. Fraud or wilful breach by the employee of the trust reposed in him by his employer
or his duly authorized representative
d. Commission of a crime by the employee on the person of his employer or any
immediate member of his family or his duly authorized representatives
e. Other causes analogous to the foregoing.
AUTHORIZED CAUSES
a. Closure of Establishment or Undertaking
a. ULESS the closing is for the purpose of circumventing the provisions of
this title
b. Redundancy
c. Retrenchment to prevent losses
d. Installation of labor-saving or cost-saving devices
e. Disease

DUE PROCESS REQUIREMENTS

For redundancy

Retrenchment/Closure
1.
2.

3.

Proof of losses
Written notice to
employee and DOLE
at least 1 month prior
too intended date of
retrenchment
Separation
pay
equivalent to 1 month
pay/ month salary
for each year of
service, whichever is
higher

LSD/Redundancy
1.

2.

3.
4.

Written notice to
employee and DOLE
at least 1 month
prior to intended
date of retrenchment
Separation
pay
equivalent
to
1
month pay/ 1 month
salary for each year
of
service,
whichever is higher
Good
faith
in
abolishing redundant
positions
Adoption of fair and
reasonable criteria
which positions to
be
declared
redundant
and
accordingly
abolished

Disease
An employer may terminate the services of an employee who has been found to be suffering
from any disease whose continued employment is prohibited by law or is prejudicial to his
health as well as to the health of his co-employees: Provided that he is
(1) Paid separation pay equivalent to at least 1 month salary or to month salary for
every year of service, whichever is greater
TERMINATION BY EMPLOYEE
GR: Employee may terminate without just cause the ER-EE relationship by serving a written
notice on the employer at least one month in advance. The employer upon whom no such
notice was served may hold employee liable for damages.
JUST CAUSES:
1. Serious insult by the employer or his representative on the honor and person of the
employee
2. Inhuman and unbearable treatment accorded the employee by the employer or his
representative
3. Commission of a crime or offense by the employer or his representative against the
person of the employee or any of the immediate members of his family
4. Other causes analogous to the foregoing

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When Employment Not Deemed Terminated
1. Bona fide suspension of the operation of a business or undertaking for a period not
exceeding 6 months
2. Fulfilment by the employee of a military or civic duty shall not terminate
employment
In all such cases, the employer shall reinstate the employee to his former position without loss
of seniority rights if he indicates his desire to resume his work not later than one (1) month
from the resumption of operations of his employer or from his relief from the military or civic
duty.
OMNIBUS RULES
Due process requirements
a. A written notice served on the employee specifying the ground or grounds for
termination, and giving said employee reasonable opportunity within which to
explain his side
b. A hearing or conference during which the employee concerned, with the assistance
of counsel if he so desires is given opportunity to respond to the charge, present his
evidence, or rebut the evidence presented against him
c. A written notice of termination served on the employee, indicating that upon due
consideration of all the circumstances, grounds have been established to justify his
termination
For termination of employment as defined in 289 (When Employment Not Deemed
Terminated), the requirement of due process shall be deemed complied with upon service of a
written notice to the employee and the appropriate Regional office of the DOLE AT LEAST
30 DAYS before effectivity of the termination, specifying the ground or ground for
termination.

Disease as Ground for Dismissal

Requirements before terminating for disease
a. Certification by a competent public health authority that the disease is of such nature
or at such a state that it cannot be cured within a period of 6 months
b. Disease or ailment cannot be cured within 6 months
If disease curable within 6 months, employer shall not terminate but shall ask employee to
take a leave. Reinstatement upon restoration of his normal health.
Basis of termination pay: Latest salary rate, unless reduced by the employer to defeat the
intention of the code

If the termination is brought about by the completion of a contract or phase thereof, or by

failure of an employee to meet the standards of the employer in the case of probationary
employment, it shall be sufficient that a written notice is served the employee within a
reasonable time from the effective date of termination.

PRESCRIPTION
Art. 1146. The following actions must be instituted within four years:
(1) Upon an injury to the rights of the plaintiff;
(2) Upon a quasi-delict;
Money Claims: All money claims arising from ER-EE relations accruing during the
effectivity of the LC shall be filed within 3 years from the time the cause of action accrued;
otherwise they shall be forever barred.

REINSTATEMENT
Reinstatement to Former Position
a. An employee who is separated from work without just cause shall be reinstated to
his former position, unless such position no longer exists at the time of his
reinstatement, in which case he shall be given a substantially equivalent position in
the same establishment without loss of seniority rights
b. In case the establishment where the employee is to be reinstated has closed/ceased
operations or where his former position no longer exists at the time of reinstatement
for reasons not attributable to the fault of the employer, the employee shall be
entitled to separation pay equivalent to at least 1 mo salary or to 1 mo salary/year of
service, whichever is higher, a fraction of 6 months being considered as one whole
year
Termination of Employment by Employer
The separation from work of an employee for a just cause does not entitle him to the
termination pay provided in the Code, without prejudice to whatever rights ,benefits, and
privileges he may have under the applicable individual or CBA with the employer or voluntary
employer policy or practice.

PROHIBITED ACTIVITES (LC 270)

No labor org or employer shall declare a strike or lockout without first having bargained
collectively in accordance with Title VII or without first having filed the notice required in the
preceding Article or without the necessary strike or lockout vote first having been obtained
and reported to the DOLE.
No strike/lockout shall be declared after assumption of jurisdiction by the President or the
MOLE after certification or submission of the dispute to compulsory or voluntary arbitration
or during the pendency of cases involving the same grounds for the strike or lockout.
Any worker whose employment has been terminated as a consequence of any unlawful
lockout shall be entitled to reinstatement with full backwages. Any union officer who
knowingly participates in an illegal strike and any worker or union officer who knowingly
participates in the commission of illegal acts during a strike may be declared to have lost his
employment status: Provided that mere participation of a worker in a lawful strike shall not
constitute sufficient ground for termination of his employment, even if a replacement had been
hired during such lawful strike.

RELIEFS and REMEDIES in ILLEGAL DISMISSAL CASES

1. Appeal
2. Reinstatement and backwages

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RESIGNATION
GR: An employee may terminate without just cause the ER-EE relationship by serving a
written notice on the employer at least one month in advance. The employer upon whom no
such notice was served may hold the employee liable for damages.
Employee may put an end to the relationship without serving any notice on the employer for
any of the ff JUST CAUSES:
1. Serious insult by the employer or his representative on the honor and person of the
employee
2. Inhuman and unbearable treatment accorded the employee by the employer or his
representative
3. Commission of a crime or offense by the employer or his representative against the
person of the employee or any of the immediate members of his family.
4. Other causes analogous to any of the foregoing
When Employment Not Deemed Terminated
a. Bona fide suspension of the operation of a business for a period not exceeding 6
months
b. Fulfilment by the employee of a military or civic duty shall not terminate
employment
In all such cases, the employer shall reinstate the employee to his former position without loss
of seniority rights if he indicates his desire to resume his work not later than one (1) month
from the resumption of operations of his employer or from his relief from the military or civic
duty.

RETIREMENT
Any employee may be retired upon reaching the retirement age established in the CBA or
other applicable employment contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits as he
may have earned under existing laws and any CBA and other agreements: Provided, however,
that an employees retirement benefits under any CBA and other agreements shall not be less
than those provided therein.
In the absence of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of 60 years or more, but
not beyond 65 years which is hereby declared the compulsory retirement age, who has served
at least five years in the establishment, may retire and shall be entitled to retirement pay
equivalent to at least month salary for every year of service, a fraction of at least 6 months
being considered as one whole year.
Unless the parties provide for broader inclusions, the term month salary shall mean 15 days
plus 1/12 of the 13th month pay and the cash equivalent of not more than 5 days of service
incentive leaves.
An underground mining employee upon reaching the age of 50 years or more, but not beyond
60 years which is hereby declared the compulsory retirement age for underground mine
workers, who has served at least 5 years as underground mine worker, may retire and shall be
entitled to all the retirement benefits provided for in this Article.
Retail, service and agricultural establishments or operations employing not more than 10
employees or workers are exempted from the coverage of this provision.