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GENERAL PRINCIPLES

constructed by the Fifth Amendment of the

U.S. Constitution as applied by the
Fourteenth Amendment.

Historical Perspective
People v. Pomar, GR No. L-22008, 11.3.94
Defendants main argument is that by Sec.
13 & 15 of Act No. 3071, he is deprived of
his liberty to contract, which
the
constitution of the Philippine Islands
guarantees to every citizen his liberty and
one of his liberties is the liberty to contract.
Held: said section creates a term or
condition in every contract made by every
person, firm, or corporation with any
woman who may, during the course of her
employment, become pregnant, and a
failure to include in said contract the terms
fixed to a fine and imprisonment. Clearly,
therefore, the law has deprived, every
person, firm, or corporation owning or
managing a factory, shop or place of labor
of any description within the Philippine
Islands, of his right to enter into contracts
of employment upon such terms as he and
the employee may agree upon. The law
creates a term in every such contract,
without the consent of the parties.
As
civilization
develops
and
public
conscience becomes awakened, the police
power may be extended, as has been
demonstrated in the growth of public
sentiment
with
reference
to
the
manufacture and sale of intoxicating
liquors. But that power cannot grow
faster than the fundamental law of the
state, nor transcend or violate the
express inhibition of the people's law
the constitution. If the people
desire to have the police power
extended and applied to conditions
and things prohibited by the organic
law, they must first amend that law.
WEST COAST HOTEL CO. V. PARRISH, 300
US 379 (1937)
x x x The basis that a state set minimum
wage violates the "liberty of contract

Held: regulation which is reasonable in

relation to its subject and is adopted in the
interests of the community is due process.
This limitation of liberty in particular
governs the freedom of contract. There is
no absolute freedom to do as one wills or
to contract as one chooses, because liberty
implies the absence of arbitrary restraint,
not immunity from reasonable regulation
imposed in the interests of the community.
This allows for state intervention
when the state holds a particular
interest of protection; especially when
the parties to a contact do not stand
one
quality,
such
as
in
an
employer/employee relationship.
ACCFA v. CUGCO, GR No L-21484/L23605,
11.69
The Agricultural Credit and Cooperative
Financing Administration (ACCFA) was a
government agency created under Republic
Act No. 821. Reorganized to Agricultural
Credit
Administration.
Pendente
lite,
CUGCO petitioned in the CIR to recognize it
as the official Union. Denied, ACCFA argues
that because of the reorganization, their
function became governmental and not
proprietary anymore, therefore they no
longer need to deal privately w/ said
unions.
Held: The Unions have no bargaining rights
with ACA. EO 75 placed ACA under the
LRPA and by virtue of RA 3844 the
implementation of the Land Reform
Program
of
the
government
is
a
governmental function NOT a proprietary
function - Section 11 of Republic Act No.
875
Concurring Opinion of Justice Fernando:
The opinion of Justice Makalintal contains
this footnote: "It must be stated, however,
that we do not here decide the question
not at issue in this case of whether or
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not a labor organization composed

employees discharging governmental
functions, which is allowed under the
legal provision just quoted, provided
such organization does not impose the
obligation to strike or to join in strike,
may
petition
for
a
certification
election and compel the employer to
bargain
collectively
with
it
for
purposes
other
than
to
secure
changes or conditions in the terms
and conditions of employment."
Bengzon v. Drilon, GR No. 103524, 4.15.92
Deprivation of pension to Justices due to
them.
Held: For as long as these retired Justices
are entitled under laws which continue to
be effective, the government cannot
deprive them of their vested right to the
payment of their pensions.
"Retirement laws should be interpreted
liberally in favor of the retiree because
their intention is to provide for his
sustenance, and hopefully even comfort,
when he no longer has the stamina to
continue earning his livelihood. After
devoting the best years of his life to the
public
service,
he
deserves
the
appreciation of a grateful government as
best concretely expressed in a generous
retirement gratuity commensurate with the
value and length of his services. That
generosity is the least he should expect
now that his work is done and his youth is
gone. Even as he feels the weariness in his
bones and glimpses the approach of the
lengthening shadows, he should be able to
luxuriate in the thought that he did his task
well, and was rewarded for it."

CONSTITUTIONAL BASIS 1987

CONSTITUTION

Art. II, Section 10. The State shall

promote social justice in all phases of
national development.
Art. II, Section 18. The State affirms labor
as a primary social economic force. It shall
protect the rights of workers and promote
their welfare.
Art. XIII, Section 3. (LABOR) The State
shall afford full protection to labor, local
and overseas, organized and unorganized,
and promote full employment and equality
of employment opportunities for all.
It shall guarantee the rights of all workers
to self-organization, collective bargaining
and negotiations, and peaceful concerted
activities, including the right to strike in
accordance with law. They shall be entitled
to security of tenure, humane conditions of
work, and a living wage. They shall also
participate in policy and decision-making
processes affecting their rights and benefits
as may be provided by law.
The State shall promote the principle of
shared responsibility between workers and
employers and the preferential use of
voluntary modes in settling disputes,
including conciliation, and shall enforce
their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations
between
workers
and
employers,
recognizing the right of labor to its just
share in the fruits of production and the
right of enterprises to reasonable returns to
investments, and to expansion and growth.
Social legislation include laws that
provide particular kinds of protection or
benefits to society or segments thereof
infurtherance of social justice.
Labor Legislation consists of statutes,
regulations and jurisprudence governing
the relations between capital and labor, by
providing for employment standards and a
legal framework for negotiating, adjusting
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and administering those standards and

other incidents of employment.
Calalang
12.02.40

v.

Williams,

GR

No.

protects his rights not only under a

general statement of a state policy,
but under the Article on Social Justice
and Human Rights, thus placing
labor contracts on a higher plane and
with greater safeguards. Verily,
relations between capital and labor
are not merely contractual. They are
impressed with public interest and
labor contracts must, perforce, yield
to the common good. Brew Master
v. NAFLU, GR No. 119243, 4.17.97
3. x x x We agree with the conclusion of
the
Labor
Arbiter
that
the
termination of the services of
petitioners was illegal as there was
no valid retrenchment. x x x This
Court firmly holds that measures
should be strictly implemented
to
ensure
that
such
constitutional
mandate
on
protection
to
labor
is
not
rendered meaningless by an
erroneous
interpretation
of
applicable laws. Fuentes v. NLRC,
GR No. 110017, 1.2.97
4. x x x The cause of social justice is
not served by upholding the
interest
of
petitioners
in
disregard of the right of private
respondents.
Social
justice
ceases
to
be
an
effective
instrument for the "equalization
of the social and economic
forces" by the State when it is
used to shield wrongdoing.
Jamer v. NLRC, GR No. 112630,
9.5.05

47800,

The petitioner avers that the rules and

regulations complained of (Road Schedule
arrangements of C.A. 548) infringe upon
the constitutional precept regarding the
promotion of social justice to insure the
well-being and economic security of all the
people.
Held: The promotion of social justice,
however, is to be achieved not through a
mistaken sympathy towards any given
group.
Social
justice
is
"neither
communism,
nor
despotism,
nor
atomism, nor anarchy," but the
humanization
of
laws
and
the
equalization of social and economic
forces by the State so that justice in
its rational and objectively secular
conception
may
at
least
be
approximated. Social justice means the
promotion of the welfare of all the people,
the adoption by the Government of
measures calculated to insure economic
stability of all the competent elements of
society, through the maintenance of a
proper economic and social equilibrium in
the interrelations of the members of the
community, constitutionally, through the
adoption of measures legally justifiable, or
extra-constitutionally, through the exercise
of powers underlying the existence of all
governments on the time-honored principle
of salus populi est suprema lex.
1. x x x It bears repeating that even
granting that petitioners might have
had the right to dismiss Tobias from
work, the abusive manner in which
that right was exercised amounted to
a legal wrong for which petitioners
must now be held liable. Mackay v.
NLRC, GR No. 81262
2. It must be underscored that no less
than our Constitution looks with
compassion on the workingman and

HUMAN RESOURCES & MANPOWER

DEVELOPMENT
Government Machinery
The National Manpower and Youth Council
(NMYC) has been replaced by Technical
Education and Skills Development Authority
(TESDA) created under R.A. No. 7796 or the
TESDA Act of 1994.
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RA 7796 TESDA Act of 1994 STATEMENT OF GOALS AND

OBJECTIVES
1. To attain international
competitiveness;
2. To meet demands for quality middlelevel manpower;
3. To disseminate scientific and
technical knowledge base;
4. To recognize and encourage the
complementary roles of public and
private institutions; and
5. To inculcate desirable values.
(Art. 43-56 of the Labor Code, as
superseded by TESDA Act)
Apprenticeship and Learnership (Labor
Code)
Types of Special Workers:

APPRENTICEABLE OCCUPATION - any

trade, form of employment or occupation
which requires more than 3 months of
practical training on the job supplemented
by related theoretical instruction.
APPRENTICESHIP AGREEMENT an
employment contract wherein the employer
binds himself to train the apprentice and
the apprentice in turn accepts the terms of
training.
ON-THE-JOB TRAINING - practical work
experience through actual participation in
productive activities given to or acquired by
an apprentice.
HIGHLY TECHNICAL INDUSTRIES - a
trade, business, enterprise, industry or
other activity, which is engaged in the
application of advanced technology.
Art. 59 Qualification of Apprentices.

1. Apprentice
2. Learner
3. Handicapped

1. At least 15 years of age (as amended

by R.A. 7610), provided that if below
18 years, he shall not be eligible for
hazardous occupation;
2. Possess vocational aptitude and
capacity for appropriate tests;
3. Possess the ability to comprehend
and
follow
oral
and
written
instructions; and
4. The
company
must
have
an
apprenticeship
program
duly
approved by the DOLE.

Art. 57 Statement of Objectives for the

training and employment of special
workers.
1. To help meet the demand of the
economy for trained manpower;
2. To establish a national
apprenticeship program; and
3. To establish apprenticeship standards
for the protection of apprentices.
Art. 58 Definition of Terms
APPRENTICESHIP - practical training on
the job supplemented by related theoretical
instruction, for a highly skilled or technical
occupation for a period of not less than
three (3) months but not more than six (6)
months.
APPRENTICE - a worker who is covered by
a written apprenticeship agreement with an
individual employer or any of the entities
recognized under this chapter, with an
apprenticeship program duly approved by
theDOLE.

NOTE: Trade and industry associations may

recommend to the Secretary of Labor
appropriate educational qualifications for
apprentices in certain occupations which, if
approved,
shall
be
the
educational
requirements for apprenticeship in such
occupations, unless waived by an employer
in favor of an applicant who has
demonstrated exceptional ability.
Art. 60 Employment of Apprentices
QUALIFICATIONS TO BE MET BY EMPLOYER

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1. Only employers in highly technical

industries may employ apprentices;
and
2. Only in apprenticeable occupations
as determined by the Secretary of
Labor.

7. Probationary period of the apprentice

during which either party may
summarily
terminate
their
agreement; and
8. A clause that if the employer is
unable
to
fulfill
his
training
obligation, he may transfer the
agreement, with the consent of the
apprentice, to any other employer
who is willing to assume such
obligation (Sec. 18, Rule VI, Book II,
Rules Implementing the Labor Code).

REQUISITES FOR A VALID APPRENTICESHIP

1. Qualifications of apprentice are met;
2. Apprentice earns not less than 75%
of the prescribed minimum salary;
3. Apprenticeship
agreement
duly
executed and signed;
4. Apprenticeship program must be
approved by the Secretary of Labor;
otherwise, the apprentice shall be
deemed a regular employee (Nitto
Enterprises v. NLRC, GR No. 114337,
September 29, 1995); and
5. Period of apprenticeship shall not
exceed six (6) months (Sec. 19, Rule
VI, Book II, Rules Implementing the
Labor Code).
NOTE:
At
the
termination
of
apprenticeship, the employer is
required to continue the employment.
Art. 61
Agreement

Contents

of

Art. 62 Who signs the agreement:

Apprentice, if minor, his parent or DOLE
representative
Art. 63 Venue of Apprenticeship: Sponsor;
DOLE training Center; Others, given the
participation of the firm
Art. 64 Sponsoring of Apprenticeship
Program
1. The plant, shop or premises of the
employer or firm concerned if the
apprenticeship program is organized
by an individual employer or firm;
2. The premises of one or several firms
designated for the purpose by the
organizer of the program i f such
organizer is an association of
employers, civic group and the like;
and
3. DOLE Training Center or other public
training institutions with which the
TESDA

the
not

Apprenticeship

1. Full name and address of the

contracting parties;
2. Date of birth of the apprentice;
3. Name of trade, occupation or job in
which the apprentice shall be trained
and the dates on which such training
will begin and will proximately end;
4. Approximate number of hours of onthe-job training with compulsory
theoretical instructions which the
apprentice shall undergo during his
training;
5. Schedule of the work processes of
the trade/occupation in which the
apprentice shall be trained and the
approximate time to be spenton the
job in each process;
6. Graduated scale of wages to be paid
to the apprentice;

Art. 65-67 Violation of Apprenticeship

Agreement
INVESTIGATION
OF
VIOLATION
APPRENTICESHIP AGREEMENT (Art. 65)

OF

1. Either party to an agreement may

terminate the same after the
probationary period only for a valid
cause.
2. Action may be initiated upon
complaint of any interested person
or upon DOLEs own initiative.
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APPEAL (Art. 66)

1. Apprenticeship program must be

duly recognized by the Department
of Labor;
2. Deduction shall not exceed 10% of
direct labor wage; and
3. Employer must pay his apprentices
the minimum wage.

The decision of an authorized agency of the

Department of Labor may be appealed to
the Secretary of Labor, within 5 days from
receipt of the adverse decision.
The decision of the Secretary of Labor shall
be final and executory.

Art. 72 Apprentice w/o Compensation

EXHAUSTION
OF
REMEDIES (Art. 67)

ADMINISTRATIVE

Apprentice may be hired w/o compensation

where on-the-job training is:

1. The exhaustion of administrative

remedies is a condition precedent to
the institution of action.
2. The plant apprenticeship committee
shall have initial responsibility for
settling differences arising out of
apprenticeship agreements (Sec.
32b, Rule VI , Book II , Rules
Implementing the Labor Code).

1. Required by the school;

2. Required by the training program
Curriculum;
3. A requisite for graduation; or
4. A requisite for board examination.

Art. 70 Voluntary Organization

Apprenticeship Programs

Note:
1. There is no EER between students on
one hand, and schools, colleges or
universities on the other hand, where
there is agreement between them
under which the former agree to
work for the latter in exchange for
the privilege to study free of charge,
provided the students are given real
opportunities,
including
such
facilities as may be reasonable and
necessary to finish their chosen
courses under such agreement (Sec.
14, Rule X, Book III, Implementing
Rules).
2. Under this Article, the student is not
considered an employee. But if he
causes injury or damage to a third
person, the school may be held liable
under Art. 2180 of the Civil Code
(Filamer Christian Institute v. IAC, GR
No. 75112, August 17, 1992).

of

GENERAL RULE: The organization of

apprenticeship program shall be primarily a
voluntary undertaking of employers.
EXCEPTION: Instances when organization of
program is compulsory:
1. When national security or particular
requirements
of
economic
development so demand; and
2. Where services of foreign technicians
are utilized by private companies in
apprenticeable trades.
Art. 71 Deductibility of Training Costs
An additional deduction from taxable
income of 1/2 of the value of labor training
expenses incurred for developing the
productivity and efficiency of apprentices
are granted to the person or enterprise
organizing an apprenticeship program.
REQUISITES

LEARNERS
Art. 73 Learners Defined
LEARNERS - persons hired as trainees in
semiskilled and other industrial occupations
which are non-apprenticeable and which
may be learned through practical training
on the job in a relatively short period of
time which shall not exceed 3 months.
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LEARNERSHIP AGREEMENT -employment

and training contract entered into between
the employer and the learner.
NOTE: On-the-job or practical training of a
learner need not be supplemented by
theoretical instruction (Sec. 1[a], Rule VII,
Book II, Rules Implementing the Labor
Code).
Art. 74 Learners may be hired.
1. No
experienced
workers
are
available;
2. The employment of learners being
necessary to prevent curtailment of
employment opportunities; and
3. The employment will neither create
unfair competition in terms of labor
costs nor impair working standards.
Art. 75 Learnership Agreement; Include
1. The names and addresses of the
employer and the learner;
2. The occupation to be learned and the
duration of the training period which
shall not exceed three (3) months;
3. The wage of learner which shall be at
least 75% of the applicable minimum
wage; and
4. A commitment to employ the
learner, if he so desires, as a regular
employee
upon
completion
of
training.
NOTE: A learner who has worked
during the first two months shall be
deemed a regular employee if training
is terminated by the employer before
the end of the stipulated period
through no fault of the learner (Sec. 4,
Rule VII, Book II, Rules Implementing the
Labor Code).
Art. 76 Learners in Piecework
Learners in piecework or incentive-rate jobs
are to be paid in full for the work done
during the training period.

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BOOK II, RULES VI AND VII OF THE

OMNIBUS IMPLEMENTING RULES OF
THE LABOR CODE
(IRR of TESDA Act on Apprenticeship and
Learnership)
DUAL TRAINING SYSTEMS ACT OF 1994
RA 7686
The policy of the State to strengthen
manpower education and training in the
country so that the latter may be assured
of an ever-growing supply of an educated
and skilled manpower equipped with
appropriate skills and desirable work habits
and attitudes. The dual training system, as
successfully
tested
in
some
highly
developed countries, shall be adopted in
duly accredited vocational and technical
schools, in cooperation with accredited
agricultural,
industrial
and
business
establishments, as one of the preferred
means of creating a dependable pool of
well-trained operators, craftsmen and
technicians for the economy.
"Dual training system" refers to an
instructional
delivery
system
of
technical and vocational education
and training that combines in-plant
training and in-school training based
on a training plan collaboratively
designed
and
implemented
by
an
accredited
dual
system
educational
institution/training center and accredited
dual system agricultural, industrial and
business establishments with prior notice
and advice to the local government unit
concerned. Under this system, said
establishments and the educational
institution share the responsibility of
providing the trainee with the best
possible job qualifications, the former
essentially through practical training
and the latter by securing an adequate
level
of
specific,
general
and

occupation-related
theoretical
instruction. The word "dual" refers to the
two parties providing instruction: the
concept "system" means that the two
instructing
parties
do
not
operate
independently of one another, but rather
coordinate their efforts;
Trainee" refers to a person qualified to
undergo the dual training system for the
purpose of acquiring and developing job
qualifications;
"Accredited
dual
training
system
educational
institution/training
center" refers to a public or private
institution duly recognized and authorized
by
the
appropriate
authority,
in
coordination with business and industry, to
participate in the dual training system;
Sec.6 - Coverage. This Act shall apply to
all
public
and
private
educational
institutions/training
centres
and
agricultural,
industrial
and
business
establishments
duly
accredited
to
participate in the dual training system.
Sec. 9 Incentives for participating
establishments.
To
encourage
agricultural,
industrial
and
business
establishments to participate in the system,
they shall be allowed to deduct from their
taxable income the amount of fifty (50) per
cent of the system expenses paid to the
accredited dual training system educational
institution for the establishment's trainees:
provided that such expenses shall not
exceed five (5) per cent of their total direct
labor expenses but in no case to exceed
twenty-five million pesos (P25,000,000) a
year.
Sec. 10 Obligations of accredited
agricultural, industrial and business
establishments.
The
agricultural,
industrial and business establishments
shall:
(a) ensure that the necessary abilities and
knowledge for the trainee to achieve the
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purpose of his training are imparted to him

and
shall
provide
such
training
systematically in accordance with an
approved training plan; x x x

individual establishment shall provide the

accredited educational institution/training
centre and the trainee with a copy of the
signed agreement.

(d) Allow the trainee to attend his in-school

training and to sit for his examinations; x x
x

The memorandum of agreement shall set

forth, among others, the following:
(a) the training plan;

(h) Pay to the accredited educational

institution/training
centre
the
daily
allowance of the trainee; x x x

(b) the nature and objective of the training;

Sec. 11 Obligations of the trainee. A

trainee shall exert every effort to acquire
the abilities and knowledge necessary for
him to achieve the purpose of his training.
Towards this end, he shall:

(d) the normal daily training hours;

(a) Carefully perform the jobs entrusted to

him as part of his training;
(b) Take part in training programmes for
which he has been granted time off under
this Act;
(c) Follow the instruction given to him as
part of his training by the training officer or
any other person entitled to give him such
instructions;
(d) Observe rules of behavior in the training
premises;
(e) Use tools, instruments, machines and
other equipment with due care;
(f) Not reveal any business or trade secrets
that have come to his knowledge in the
course of his training; and
(g) Keep his record books up to date.
Sec. 14 Signing of memorandum of
agreements by the accredited dual
training system agricultural, industrial
and business establishments, the
accredited
dual
training
system,
educational institution/training centre
and the trainee. Before an individual
establishment begins with an accredited
education institution/training centre and
the trainee or his representative, the

(c) the commencement and duration of the

training period, including the total number
of in-school and in-plant training hours;

(e) the trainee's allowance and the rate to

be applied, which in no case shall start
below seventy-five (75) per cent of the
applicable minimum daily wage for days
spent in the establishments;
(f) the rights and obligations of the parties
concerned in addition to those provided in
Sections 10, 11 and 12;
(g) the definition of the status of the
trainee according to Section 8 of this Act;
(h) the conditions for the termination of the
training agreement;
(i) the performance,
evaluation system; and

monitoring

and

(j) such other essential particulars as would

mutually benefit all parties concerned.
Sect. 15 Insurance coverage of the
trainee. Every agricultural, industrial and
business
establishment
undertaking
training, in accordance with the provisions
of this Act, shall sign a life and/or accident
insurance policy on the life of the trainee
with the insured and the spouse, children or
parents of the trainee as the beneficiaries
thereof: provided that the agricultural,
industrial and business establishments shall
pay for the premiums of said insurance
policy.
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Nitto Enterprises v. NLRC, GR No. 114337,

9.29.95
Nitto entered into an apprenticeship
agreement w/ PR, w/o DOLE approval, when
PR was found to be careless, PR was asked
to resign. PRs family then sued for illegal
dismissal.
Held:
the
apprenticeship
agreement
between petitioner and private respondent
was executed on May 28, 1990 allegedly
employing the latter as an apprentice in the
trade of "core maker/molder." On the same
date, an apprenticeship program was
prepared by petitioner and submitted to the
Department of Labor and Employment.
However, the apprenticeship Agreement
was filed only on June 7, 1990.
Notwithstanding the absence of approval
by
the
Department
of
Labor
and
Employment,
the
apprenticeship
agreement was enforced the day it was
signed.
Petitioner did not comply with the
requirements of the law. Article 57 of
the Labor Code x x x Prior approval of the
DOLE to any apprenticeship program has to
be secured as a condition sine qua non
before any such apprenticeship agreement
can be fully enforced. The role of the DOLE
in
apprenticeship
programs
and
agreements cannot be debased.

EMPLOYER EMPLOYEE RELATIONSHIP

Employer-employee relationship is an
agreement between parties to render
service in exchange for compensation.
[Compania Maritima v. Ernesta Cabagnot
Vda. de Hio, G.R. No. L-17367-69, February
28, 1963]. However, these contracts are
impressed with public interest that
they must yield to the common good.
[Article 1700, Civil Code]. Hence, the
presence or absence of employeremployee relationship is a question of
law. [Insular Life Assurance Co., Ltd. v.

NLRC, G.R. No. 119930, March 12, 1998;

Tabas v. California Manufacturing, G.R. No.
80680, January 26, 1989; SSS v. CA, G.R.
No. 100388, December 14, 2000].
Azucena on EER: a natural person who is
hired, directly or indirectly, by a natural or
juridical person to perform activities
related to the business of the hirer who,
directly or through an agent, supervises or
controls the work performance and pays
the salary or wage of the hiree. [Cesario
Azucena, Jr., Everyones Labor Code, p. 56
(2012)].
Employer Any person, natural or
juridical, domestic or foreign, who carries
on in the Philippines any trade, business,
industry, undertaking or activity of any kind
and uses the services of another person
who is under his order as regards the
employment [Section 8(c), R.A. No. 8282].
Employer includes any person acting in the
interest of an employer, directly or
indirectly. The term shall not include any
labor organization or any of its officers or
agents except when acting as employer. Art
212(e)
Employee Any person in the employ of an
employer. The term shall not be limited to
the employees of a particular employer,
unless the Labor Code so explicitly states. It
shall include any individual whose work has
ceased as a result of or in connection with
any current labor dispute or because of any
unfair labor practice if he has not obtained
any other substantially equivalent and
regular employment. [Art 212 (f), Labor
Code].

INDEPENDENT CONTRACTOR
Art. 106 Contractor or Sub-Contractor
Contractor or subcontractor. Whenever an
employer enters into a contract with
another person for the performance of
the formers work, the employees of
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the contractor and of the latters

subcontractor, if any, shall be paid in
accordance with the provisions of this
Code.
In the event that the contractor or
subcontractor fails to pay the wages of his
employees in accordance with this Code,
the employer shall be jointly and
severally 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.
The
Secretary
of
Labor
and
Employment may, by appropriate
regulations, restrict or prohibit the
contracting-out of labor to protect the
rights of workers established under
this Code. In so prohibiting or restricting,
he may make appropriate distinctions
between labor-only contracting and job
contracting as well as differentiations
within these types of contracting and
determine who among the parties involved
shall be considered the employer for
purposes of this Code, to prevent any
violation or circumvention of any provision
of this Code.
There is "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 person 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.
"Contracting"
or
"Subcontracting"
refers to an arrangement whereby a

principal agrees to put out or farm out with

a contractor the performance or completion
of a specific job, work or service within a
definite
or
predetermined
period,
regardless of whether such job, work or
service is to be performed or completed
within or outside the premises of the
principal. [Section 3(c), D.O. No. 18-A].
"Contractor" refers to any person or
entity, including a cooperative, engaged in
a legitimate contracting or subcontracting
arrangement providing either services,
skilled workers, temporary workers, or a
combination of services to a principal under
a Service Agreement. [Section 3(d), D.O.
No. 18-A].
"Contractor's employee" includes:

One employed by a contractor to

perform or complete a job, work, or
service pursuant to a Service
Agreement with a principal.
It shall also refer to regular
employees of the contractor whose
functions are not dependent on the
performance or completion of a
specific job, work or service within a
definite
period
of
time,
i.e.,
administrative staff. [Section 3(e),
D.O. No. 18-A].

"Principal" refers to any employer,

whether a person or entity, including
government agencies and governmentowned
and
controlled-corporations,
who/which puts out or farms out a job,
service or work to a contractor. [Section
3(h), D.O. No. 18-A].
"Trilateral Relationship" refers to the
relationship
in
a
contracting
or
subcontracting arrangement where there is
a contract for a specific job, work or service
between the principal and the contractor,
and a contract of employment between the
contractor and its workers. There are three
(3) parties involved in these arrangements:
the principal who decides to farm out a job,
work or service to a contractor; the
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contractor who has the capacity to

independently undertake the performance
of the job, work or service; and the
contractual workers engaged by the
contractor to accomplish the job, work or
service. [Section 3(m), D.O. No. 18-A].
"Right to control" refers to the right
reserved to the person for whom the
services of the contractual workers are
performed, to determine not only the end
to be achieved, but also the manner and
means to be used in reaching that end.
[Section 3(i), D.O. No. 18-A].
"Service Agreement" refers to the
contract between the principal and
contractor containing the terms and
conditions governing the performance or
completion of a specific job, work or service
being farmed out for a definite or
predetermined period. [Section 3(j), D.O.
No. 18-A].

Trilateral relationship in contracting

arrangements; Solidary liability
In legitimate contracting or subcontracting
arrangement there exists:

"Solidary liability" refers to:

The liability of the principal, pursuant

to the provision of Article 109 of the
Labor Code, as direct employer
together with the contractor for any
violation of any provision of the
Labor Code. [Section 3(k), D.O. No.
18-A].
It also refers to the liability of the
principal, in the same manner and
extent that he/she is liable to his/her
direct employees, to the extent of
the work performed under the
contract when the contractor fails to
pay the wages of his/her employees,
as provided in Article 106 of the
Labor Code, as amended. [Section
3(k), D.O. No. 18-A].

Legitimate
subcontracting.

contracting

or

Contracting or subcontracting shall be

legitimate if all the following circumstances
concur:

The contractor must be registered in

accordance with these Rules and
carries a distinct and independent
business and undertakes to perform
the job, work or service on its own
responsibility, according to its own
manner and method, and free from
control and direction of the principal
in all matters connected with the
performance of the work except as to
the results thereof;
The
contractor
has
substantial
capital and/or investment; and
The Service Agreement ensures
compliance with all the rights and
benefits under Labor Laws. [Section
4, D.O. No. 18-A].

An employer-employee relationship
between the contractor and the
employees it engaged to perform the
specific job, work or service being
contracted; and
A contractual relationship between
the principal and the contractor as
governed by the provisions of the
Civil Code.

In the event of any violation of any

provision of the Labor Code, including the
failure to pay wages, there exists a solidary
liability on the part of the principal and the
contractor for purposes of enforcing the
provisions of the Labor Code and other
social legislation, to the extent of the work
performed under the employment contract.
However,
the
principal
shall
be
deemed the direct employer of the
contractor's employee in cases where
there is a finding by a competent
authority of labor-only contracting, or
commission of prohibited activities as
provided in Section 7, or a violation of
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either Sections 8 or 9 hereof. [Section 5,

D.O. No. 18-A].
Prohibition
contracting.

against

labor-only

Labor-only contracting is hereby declared

prohibited. For this purpose, labor only
contracting shall refer to an arrangement
where:

The contractor does not have

substantial capital or investments in
the form of tools, equipment,
machineries, work premises, among
others, and the employees recruited
and placed are performing activities
which are usually necessary or
desirable to the operation of the
company, or directly related to the
main business of the principal within
a definite or predetermined period,
regardless of whether such job, work
or service is to be performed or
completed within or outside the
premises of the principal; or
The contractor does not exercise the
right to control over the performance
of the work of the employee.
[Section 6, D.O. No. 18-A].

Security of
employees.

tenure

of

contractor's

It is understood that all contractor's

employees enjoy security of tenure
regardless of whether the contract of
employment is co-terminus with the service
agreement, or for a specific job, work or
service, or phase thereof. [Section 11,
D.O. No. 18-A].

LABOR DISPUTE
Article. 212. Definitions. - (a) "Commission"
means the National Labor Relations
Commission or any of its divisions, as the
case may be, as provided under this Code.
xxx
(i)

"Company union" means any

labor
organization
whose
formation,
function
or
administration
has
been
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assisted by any act defined as

unfair labor practice by this
Code.

xxx

The above two constitute the

prohibited act of discharging a
woman due to pregnancy which
are:

GROUPS OF EMPLOYEES
Special Women Art. 130-138

1. To discharge a woman employee

on account of her pregnancy;
2. To discharge a woman employee
while she is on leave due to her
pregnancy;
3. To discharge a woman employee
while she is in confinement due to
her pregnancy;
4. To discharge a woman employee
upon returning to her work for
fear that she may again be
pregnant;
5. To refuse admission a woman
employee upon returning to her
work for fear that she may again
be pregnant

Prohibited Acts under the Labor Code

and Implementing Rules: It shall be
unlawful for any employer:

or in confinement due to her

pregnancy;
To discharge or refuse the admission of
such woman upon returning to her work
for fear that she may again be pregnant;

To deny any woman employee the

benefits provided for in this Chapter
(Employment of Women) or to discharge
any woman employed by him for the
purpose of preventing her from enjoying
any of the benefits provided under this
Code;
a. To deny any woman employee of the
benefits provided under Chapter 1
(Employment of Women), Title III
(Working Conditions for Special
Groups of Employees) of Book III
of the Labor Code, namely:
a. Facilities for women under
Article 130 (132)
b. Maternity leave benefits under
Article 131 (133)
c. Family planning services and
incentives for family planning
under Article 132 (134)
b. To discharge any woman employee
for the purpose of preventing her
from enjoying any of the benefits
provided by the Labor Code.
NOTE: Under the first clause, mere
denial of the benefits constitutes a
violation while the second clause
requires discharge or dismissal of
the woman employee in order to
prevent her from enjoying any
benefit provided by the Code.

Absences due to pregnancy

related ailments such as urinary
tract infection is not a valid
ground for dismissal from work
because it falls under the
prohibition on discharging a
woman employee on account of
her pregnancy. [Del Monte
Philippines, Inc. v. Velasco,
G.R. No. 153477, March 6,
2007].

c. To discharge such woman on account

of her pregnancy, or while on leave

To discharge any woman or any other

employee for having filed a complaint or
having testified or being about to testify
under the Code; and
To
require
as
condition
for
or
continuation of employment that a
woman employee shall not get marries
or to stipulate expressly or tacitly that
upon
getting
married
a
woman
employee shall be deemed resigned or
separated, or to actually dismiss,
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discharge, discriminate or otherwise

prejudice a woman employee merely by
reason of her marriage.
[See Article 135 (137), Labor Code;
Section 13, Rule XII, Book III, Rules
Implementing the Labor Code].
Other law(s): Expulsion of Women
faculty or female student due to
pregnancy outside of marriage
Expulsion and non-readmission of women
faculty due to pregnancy outside of
marriage shall be outlawed. No school shall
turn out or refuse admission to a female
student solely on the account of her having
contracted pregnancy outside of marriage
during her term in school. [Section 13(c),
R.A. No. 9710].
RULE XII LC IRR: Employment of
Women and Minors
SECTION
1.
General
statement
on
coverage. This Rule shall apply to all
employers, whether operating for profit or
not, including educational, religious and
charitable institutions, except to the
Government
and
to
governmentowned or controlled corporations and
to employers of household helpers and
persons in their personal service
insofar
as
such
workers
are
concerned.
xxx
SECTION 4. Status of women workers
in certain work places. Any woman
who is permitted or suffered to work with or
without compensation, in any night club,
cocktail lounge, beer house, 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 Secretary of Labor and
Employment, shall be considered as an
employee of such establishments for
purposes of labor and social legislation. No
employer shall discriminate against such

employees or in any manner reduce

whatever benefits they are now enjoying by
reason
of
the
provisions
of
this
Section.cralaw
SECTION 5. Night work of women
employees. Any woman employed in
any industrial undertaking may be allowed
to work beyond 10:00 o'clock at night, or
beyond 12:00 o'clock midnight in the case
of women employees of commercial or nonindustrial enterprises, in any of the
following cases:
(a) In cases of actual or impending
emergencies caused by serious accident,
fire, flood, typhoon, earthquakes, epidemic
or other disaster or calamity, to prevent
loss of life or property or in cases of force
majeure or imminent danger to public
safety;
(b) In case of urgent work to be performed
on machineries, equipment or installation,
to avoid serious loss which the employer
would otherwise suffer;
(c) Where the work is necessary to prevent
serious loss of perishable goods;
(d) Where the woman employee holds a
responsible position of a managerial or
technical nature, or where the woman
employee has been engaged to provide
health and welfare services;
(e) Where the nature of the work requires
the manual skill and dexterity of women
and the same cannot be performed with
equal efficiency by male workers or where
the employment of women is the
established practice in the enterprises
concerned on the date these Rules become
effective; and
(f) Where the women employees are
immediate
members
of
the
family
operating
the
establishment
or
undertaking.cralaw
The Secretary of Labor and Employment
shall from time to time determine cases
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analogous to the foregoing for purposes of

this Section.cralaw
SECTION 6. Agricultural work. No
woman, regardless of age, shall be
permitted or suffered to work, with or
without compensation, in any agricultural
undertaking at night time unless she is
given a rest period of not less than nine (9)
consecutive hours, subject to the provisions
of Section 5 of this Rule.cralaw
SECTION 7. Maternity leave benefits.
Every employer shall grant to a pregnant
woman employee who has rendered an
aggregate service of at least six (6) months
for the last twelve (12) months immediately
preceding the expected date of delivery, or
the complete abortion or miscarriage,
maternity leave of at least two (2) weeks
before and four (4) weeks after the
delivery, miscarriage or abortion, with full
pay based on her regular or average
weekly wages.cralaw
SECTION 8. Accreditation of leave credits.
Where the pregnant woman employee
fails to avail of the two-week pre-delivery
leave, or any portion thereof, the same
shall be added to her post-delivery leave
with pay.cralaw
SECTION 9. Payment of extended
maternity leave. When so requested
by the woman employee, the extension of
her maternity leave beyond the four-week
post-delivery leave shall be paid by the
employer from her unused vacation and/or
sick leave credits, if any, or allowed without
pay in the absence of such leave credits,
where the extended leave is due to illness
medically certified to arise out of her
pregnancy, delivery, complete abortion or
miscarriage which renders her unfit for
work.cralaw
SECTION 10. Limitation on leave
benefits. The maternity benefits
provided herein shall be paid by an
employer only for the first four (4)
deliveries, miscarriages, and/or complete

abortions of the employee from March 13,

1973, regardless of the number of
employees
and
deliveries,
complete
abortions or miscarriages the woman
employee had before said date. For
purposes of determining the entitlement of
a woman employee to the maternity leave
benefits as delimited herein, the total
number of her deliveries, complete
abortions, or miscarriages after said date
shall be considered regardless of the
identity or number of employers she has
had at the time of such determination,
provided that she enjoyed the minimum
benefits therefor as provided in these
regulations.cralaw
SECTION 11. Family planning services.
Employers who habitually employ more
than two hundred (200) workers in any
locality shall provide free family-planning
services to their employees and their
spouses which shall include but not limited
to,
the
application
or
use
of
contraceptives.cralaw
Subject to the approval of the Secretary of
Labor and Employment, the Bureau of
Women and Young Workers shall, within
thirty (30) days from the effective date of
these Rules, prescribe the minimum
requirements of family planning services to
be
given
by
employers
to
their
employees.cralaw
SECTION 12. Relation to agreements.
Nothing herein shall prevent the employer
and his employees or their representatives
from entering into any agreement with
terms more favorable to the employees
than those provided herein, or be used to
diminish any benefit granted to the
employees
under
existing
laws,
agreements, and voluntary employer
practices.cralaw
SECTION 13. Prohibited acts. It shall be
unlawful for any employer:
(a) To discharge any woman employed by
him for the purpose of preventing such
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woman from enjoying the maternity leave,

facilities and other benefits provided under
the Code;
(b) To discharge such woman employee on
account of her pregnancy, or while on leave
or in confinement due to her pregnancy;

Employee: Subject to the employers

power to control the means and methods
by which the employees work is to be
performed and accomplished.
EMPLOYMENT OF MINORS
Art. 139. Minimum employable age.

(c) To discharge or refuse the admission of

such woman upon returning to her work for
fear that she may be pregnant;

a.

No child below fifteen (15) years of

age shall be employed, except when
he works directly under the sole
responsibility of his parents or
guardian, and his employment does
not in any way interfere with his
schooling.
b. Any person between fifteen (15) and
eighteen (18) years of age may be
employed for such number of hours
and such periods of the day as
determined by the Secretary of Labor
and Employment in appropriate
regulations.
c. The foregoing provisions shall in no
case allow the employment of a
person below eighteen (18) years of
age in an undertaking which is
hazardous or deleterious in nature as
determined by the Secretary of Labor
and Employment.

(d) To discharge any woman or child or any

other employee for having filed a complaint
or having testified or being about to testify
under the Code; and
(e) To require as a condition for a
continuation of employment that a woman
employee shall not get married or to
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.cralaw
SECTION
14.
Facilities
for
woman
employees. Subject to the approval of
the Secretary of Labor and Employment,
the Bureau of Women and Young Workers
shall, within thirty (30) days from the
effective date of these Rules, determine in
an appropriate issuance the work situations
for which the facilities enumerated in
Article 131 of the Code shall be provided,
as well as the appropriate minimum age
and other standards for retirement or
termination of employment in special
occupations in which women are employed.
Difference between an Employee and
Independent Contractor
IC: On its own account and under its own
responsibility according to its own manner
and method, free from the control and
direction of the principal in all matters
connected with the performance of the
work except as to the results thereof.

Art.
140.
Prohibition
against
child
discrimination.
No
employer
shall
discriminate against any person in respect
to terms and conditions of employment on
account of his age.
Omnibus Implementing Rules, Section
2&3, Rule XII
SECTION 2. Employable age. Children
below fifteen (15) years of age 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. In such cases, the children
shall not be considered as employees of the
employers or their parents or guardians.
SECTION 3. Eligibility for employment.
Any person of either sex, between 15 and
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18 years of age, may be employed in any

non-hazardous work. No employer shall
discriminate against such person in regard
to terms and conditions of employment on
account of his age.
DOMESTICS EMPLOYMENT OF
HOUSEHELPERS
Art. 141 Persons rendering services in
households for compensation

Art. 155. Distribution of homework. For

purposes of this Chapter, the "employer" of
homeworkers includes any person, natural
or artificial who, for his account or benefit,
or on behalf of any person residing outside
the country, directly or indirectly, or
through an employee, agent contractor,
sub-contractor or any other person:

Art. 151 Employment Certification: Right

receive a Written statement of the nature
and duration of the service; efficiency and
conduct.

1. Delivers, or causes to be delivered, any

goods, articles or materials to be
processed or fabricated in or about a
home and thereafter to be returned or
to be disposed of or distributed in
accordance with his directions; or
2. Sells any goods, articles or materials to
be processed or fabricated in or about a
home and then rebuys them after such
processing or fabrication, either by
himself or through some other person.

OIR Rule XIII

OIR Rule XIV - HOMEWORKER

Homeworkers - Performs in or about his

home any processing of goods or materials,
in whole or in part, which have been
furnished directly or indirectly by an
employer and thereafter to be returned to
the latter.

Maintenance and Enjoyment of the

Household; Ministering to the personal
comfort and convenience of the family
members

Contract: Initial, 2 years only maybe

renewed from year to year
Assignment: Household only
Education: If under 18, at least
elementary, employers cost, unless not
in the contract.
Unjust Termination: If contracted, fixed,
unjustly dismissed shall be paid of
what she already earned
Funeral: In case of death, Employer shall
bare the expenses
Compensation: as in this code, but if
higher already, thus shall retain.

EMPLOYMENT OF HOMEWORKERS
Art. 153. Regulation of industrial
homeworkers. The employment of
industrial homeworkers and field personnel
shall be regulated by the government
through the appropriate regulations issued
by the Secretary of Labor and Employment
to ensure the
general welfare and protection of
homeworkers and field personnel and the
industries employing them.

Home: Dwelling
Payment: Immediately upon receipt;
exc. Contractor/Subcontractor: within
the week
No Deduction, unless directly at fault.
Disagreement: Regional Office
Liability if Contractor/Sub-Contractor
fails to pay.
EMPLOYMENT OF
HANDICAPPED/DISABLED

RA 7277 Magna Carta for Disabled

Persons
Covers all disabled person and
Departments, offices and agencies of the
National Government or non-government
organizations involved.

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Art. 81, Eligibility for Apprenticeship, if

disability does not impeded operations.

Adopting policies ensuring the

rehabilitation, self-development, and
self-reliance
Same rights as other people
Rehabilitation shall be the concern of
the Government
Partnership with the Private Sector
Sheltered Employment: Workshops
providing facilities, income producing
projects.

OIR Book II, Rule VIII

Employment agreement, furnished to

DOLE

GROUPS OF EMPLOYEES SPECIAL

ORDINARY

Sec 5. No difference in the terms and

conditions of employment

PROBATIONARY EMPLOYMENT

Sec. 6. Sheltered Employment

Sec. 7. Eligibility to Apprenticeships or
Learnership, provided that they are suitable
to the job.
Sec. 8. Incentives to Employers
Sec. 9. Entitlement to Vocational
Rehabilitation (Training)
Sec. 10. Entitlement to Guidance and
Counseling for employment
Sec. 11. IRR
Sec. 32. Protection from Discrimination,
regarding the job: Limitation, Segregation,
Classification; Standards that disqualifies;

Art. 281. 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. An employee who is allowed
to work after a probationary period shall be
considered a regular employee.
REGULAR AND CASUAL EMPLOYMENT

Sec. 33. Employment Entrance

Examination, Subjecting one to medical
examination.
Art 78-81 Labor Code
Art. 78, Definition: Impaired by age or
physical or mental deficiency or injury
Art. 79, When Employed: Handicapped
workers may be employed when their
employment is necessary to prevent
curtailment of employment opportunities
and when it does not create unfair
competition in labor costs or impair or
lower working standards.
Art. 80, Terms: Shall not be less than 75%;
Duration; Work to be performed.

Art.
280.
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
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 or where the
work or service to be performed is seasonal
in nature and the employment is for the
duration of the season.
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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 a regular
employee with respect to the activity in
which he is employed and his employment
shall continue while such activity exists.

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Art. 212 (M&N). Managerial and

Supervisory Employees - "Managerial
employee" is one who is vested with the
powers or prerogatives to lay down and
execute management policies and/or to
hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees.
Supervisory employees are those who, in
the interest of the employer, effectively
recommend such managerial actions if the
exercise of such authority is not merely
routinary or clerical in nature but requires
the use of independent judgment. All
employees not falling within any of the
above definitions are considered rank-andfile employees for purposes of this Book.

LABOR STANDARDS
COVERAGE
Art. 6 - Applicability. All rights and
benefits granted to workers under this Code
shall, except as may otherwise be provided
herein, apply alike to all workers, whether
agricultural
or
non-agricultural.
(As
amended by Presidential Decree No. 570-A,
November 1, 1974)

LABOR STANDARDS | WAGES

Art. 97(f) - "Wage" paid to any employee
shall mean the remuneration or earnings,
however designated, capable of being
expressed in terms of money, whether fixed
or ascertained on a time, task, piece, or
commission basis, or other method of
calculating the same, which is payable by
an employer to an employee under a
written
or
unwritten
contract
of
employment for work done or to be done,
or for services rendered or to be rendered
and includes the fair and reasonable
Art. 98. Application of Title. - This Title
shall 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.
OIR BOOK III RULE VII
SECTION 3. Holiday Pay. Every
employer shall pay his employees their
regular daily wage for any worked regular
holidays.
As used in the rule, the term 'regular
holiday' shall exclusively refer to: New
Year's Day, Maundy Thursday, Good Friday,
the ninth of April, the first of May, the
twelfth of June, the last Sunday of August,
the thirtieth of November, the twenty-fifth
and thirtieth of December. Nationwide
special days shall include the first of
November and the last day of December.
As used in this Rule legal or regular holiday
and special holiday shall now be referred to
as 'regular holiday' and 'special day',
respectively.
SECTION 4. Compensation for holiday
work. Any employee who is permitted or
suffered to work on any regular holiday, not
exceeding eight (8) hours, shall be paid at
least two hundred percent (200%) of his
regular daily wage. If the holiday work falls
on the scheduled rest day of the employee,
he shall be entitled to an additional
premium pay of at least 30% of his regular
holiday rate of 200% based on his regular
wage rate.
SECTION 5. Overtime pay for holiday
work. For work performed in excess of
eight hours on a regular holiday, an
employee shall be paid an additional
compensation for the overtime work
equivalent to his rate for the first eight
hours on such holiday work plus at least
30% thereof.
Where the regular holiday work exceeding
eight hours falls on the scheduled rest day
of the employee, he shall be paid an
additional compensation for the overtime
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work equivalent to his regular holiday-rest

day for the first 8 hours plus 30% thereof.
The regular holiday rest day rate of an
employee shall consist of 200% of his
regular daily wage rate plus 30% thereof.
SECTION 6. Absences.
a) All covered employees shall be
entitled to the benefit provided
herein when they are on leave of
absence with pay. Employees who
are on leave of absence without pay
on the day immediately preceding a
regular holiday may not be paid the
required holiday pay if he has not
worked on such regular holiday.
b) Employees shall grant the same
percentage of the holiday pay as the
benefit
granted
by
competent
authority in the form of employee's
compensation or social security
payment, whichever is higher, if they
are not reporting for work while on
such benefits.
c) Where
the
day
immediately
preceding the holiday is a nonworking day in the establishment or
the scheduled rest day of the
employee, he shall not be deemed to
be on leave of absence on that day,
in which case he shall be entitled to
the holiday pay if he worked on the
day immediately preceding the nonworking day or rest day.cralaw

enterprise due to business reverses

as authorized by the Secretary of
Labor and Employment may not be
paid by the employer.
SECTION 8. Holiday pay of certain
employees.
a) Private school teachers, including
faculty members of colleges and
universities, may not be paid for the
regular holidays during semestral
vacations. They shall, however, be
paid for the regular holidays during
Christmas vacation;
b) Where a covered employee, is paid
by results or output, such as
payment on piece work, his holiday
pay shall not be less than his
average daily earnings for the last
seven (7) actual working days
preceding
the
regular
holiday;
Provided, However, that in no case
shall the holiday pay be less than the
applicable statutory minimum wage
rate.
c) Seasonal workers may not be paid
the required holiday pay during offseason when they are not at work.
d) Workers who have no regular
working days shall be entitled to the
benefits provided in this Rule.
SECTION 9. Regular holiday falling on
rest days or Sundays.

SECTION 7. Temporary or periodic

shutdown and temporary cessation of
work.
a) In cases of temporary or periodic
shutdown and temporary cessation
of work of an establishment, as when
a yearly inventory or when the repair
or cleaning of machineries and
equipment is undertaken, the regular
holidays falling within the period
shall be compensated in accordance
with this Rule.
b) The regular holiday during the
cessation
of
operation
of
an

a) A regular holiday falling on the

employee's rest day shall be
compensated accordingly.
b) Where a regular holiday falls on a
Sunday, the following day shall be
considered a special holiday for
purposes of the Labor Code, unless
said day is also a regular holiday.

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