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LABOR STANDARDS LAWS

(LAWS ON CONDITIONS OF EMPLOYMENT
AND ON HEALTH AND SAFETY)
By: Dean Froilan M. Bacungan
3.1. The 1987 Constitution mandates that the State shall afford full
protection to labor. In furtherance of this mandate, the Constitution also
provides that all workers shall be entitled to security of tenure, humane
conditions of work, and a living wage. The laws that implement these
constitutional mandates are called Labor Standards Laws. What are our
Labor Standards Laws?
The Labor Standards Laws (which could also be called Laws on Conditions
of Employment and on Health and Safety) are the Law on Hours of Work (Art. 82-
87, Labor Code), Law on Weekly Rest Periods (Art. 91-93, Labor Code), Holiday
Pay Law (Art. 94, Labor Code), Law on Service Incentive Leaves (Art. 95, Labor
Code), and Law on Service Charges (Art. 96, Labor Code).
A very important Labor Standards Law that seeks to assure workers a
decent living wage is the Law on Wages (Art. 97-129, Labor Code).
Other very important Labor Standards Laws are the laws prescribingworking
conditions for special groups of employees, i.e. Law on the Employment of
Women, (Art. 130-139, Labor Code), Law on the Employment of Minors (Art.
139-140, Labor Code), Law on the Employment of Househelpers (Art. 141-152,
Labor Code) and Law on Industrial Homeworkers (Art. 153-154, Labor Code).
Labor Standards laws that provide for the health and safety of employees,
are the Medical and Dental Services Law (Art. 156-161, Labor Code) and the Law
on Occupational Health and Safety (Art. 162-165, Labor Code).
The Labor Standards Law that seeks to assure workers to security of tenure
is the Law of Termination of Employment (Art. 278-266, also Art. 277 (b), Labor
Code). Related to the Law on Termination is the Law on Retirement (Art. 287,
Labor Code).
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The above Labor Standards Laws as amended and modified by the

respective Republic Acts seek to assure workers humane working conditions of
work.
3.2. The Labor Standards Laws provide rights granted to employees. The
employers of said employees, in turn, have the legal obligation to see that
these rights are realized. The existence of an employer-employee relation is,
therefore, a prerequisite for the application of Labor Standards Laws. What
are the legal definitions of employer, employee and employer-employee
relationship.
A basic factor underlying the exercise of rights and the filing of claims for
benefits under the Labor Code and other presidential issuances or labor legislations
is the status and nature of one's employment. Whether an employer-employee
relationship exists and whether such employment is managerial in character or that
of a rank and file employee are primordial considerations before extending labor
benefits. (Elias Villuga vs. NLRC, G.R. No. 75038, August 23, 1993)
It is firmly settled that the existence or non-existence of the employer-

employee relationship is commonly to be determined by examination of certain
factors or aspects of that relationship. These include: (a) the manner of selection
and engagement of the putative employee; (b) the mode of payment of wages; (c)
the presence or absence of a power to control the putative employee's conduct,
although the latter is the most important element . (Pilipinas Shell Petroleum
Corporation vs. Court of Appeals, G.R. No. 104658, April 7, 1993)
Jurisprudence is firmly settled that whenever the existence of an

employment relationship is in dispute, four elements constitute the reliable
yardstick: (a) the selection and engagement of the employee; (b) the payment of
wages; (c) the power of dismissal; and (d) the employer's power to control the
employee's conduct. It is the so-called "control test," and that is, whether the
employer controls or has reserved the right to control the employee not only as to
the result of the work to be done but also as to the means and methods by which
the same is to be accomplished, which constitute the most important index of the
existence of the employer-employee relationship. Stated otherwise, an employer-
employee relationship exists where the person for whom the services are
performed reserves the right to control not only the end to be achieved but also the
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means to be used in reaching such end. (Aurora Land Projects Corporation vs.
NLRC, G.R. No. 114733, January 2, 1997)
The fact that it used payslips did not even prove that it paid the worker's
salaries; this was only for accounting purposes. (Leonardo vs. CA, G.R. No.
152459, June 15, 2006)
Where private respondent company selected and engaged the services of

petitioner as its resident agent in the Philippines, paid the latter's salary, held the
power of dismissal as shown by the various memorandum it issued to petitioner,
had the power of control over the means and method of petitioner in accomplishing
his work, it was ruled that employer-employee relationship existed between the
parties. Exercise of the power of control by the company consisted of various
directives it issued to petitioner. (Mendiola vs. CA, G.R. No. 159333, July 31,
2006;Consulta vs. CA, G.R. No. 145443, March 18, 2005)
LAW ON HOURS OF WORK
3.3. Are the laws of hours of work, weekly rest periods, holiday pay, and
service incentive leaves applicable to all employees?
No, the above laws shall apply to employees in all establishments and
undertakings, whether for profit or not, but not to government employees,
managerial employees, field personnel, members of the family of the employer
who are dependent on him for support, domestic helpers, persons in the personal
service of another, and workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations.
Managerial employees mentioned above, refer to those whose primary
duty consists of the management of the establishment in which they are employed
or of a department or subdivision thereof, and to other officers or members of the
managerial staff.
Field personnel shall refer to non-agricultural employees who regularly
perform their duties away from the principal place of business or branch office of
the employer and whose actual hours of work in the field cannot be determined
with reasonable certainty. (Art. 82, Labor Code)
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There are also these provisions on the employees not covered by the said
laws:
Managerial employees are those employees who meet all of the following
conditions, namely:
1. Their primary duty consists of the management of the establishment in
which they are employed or of a department or sub-division thereof;
2. They customarily and regularly direct the work of two or more
employees therein;
3. They have the authority to hire or fire other employees of lower rank;
or their suggestions and recommendations as to the hiring and firing and as to the
promotion or any other change of status of other employees are given particular
weight. (Book III, Rule I, Sec. 2(b) LC Rules and Regulations)
Officers or members of a managerial staff are those who perform the
following duties and responsibilities:
1. The primary duty consists of the performance of work directly related
to management policies of their employer;
2. Customarily and regularly exercise discretion and independent
judgment;
3. (i) 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 (ii) execute under general
supervision work along specialized or technical lines requiring special training,
experience, or knowledge; or (iii) execute under general supervision special
assignments and tasks; and
4. Who do not devote more than 20 percent of their hours work in a
workweek to activities which are not directly and closely related to the
performance of the work described in paragraphs 1, 2, and 3 above. (Book III,
Rule I, Sec. 2(c), LC Rules and Regulations)
Domestic servants and persons in the personal service of another are those
who perform such services in the employers home which are usually necessary or
desirable for the maintenance and enjoyment thereof, or minister to the personal
comfort, convenience, or safety of the employer as well as the members of his
employers household. (Book III, Rule I, Sec. 2(d), LC Rules and Regulations)
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3.4. What are the rights of workers under the Law on Hours of Work?
The rights of workers under the above law are:
(1) Right to rest, i.e. right not to work overtime except in cases of
emergency overtime work;
(2) Right to an additional compensation for overtime work;
(3) Right to a meal period; and
(4) Right to a night shift differential.
In addition to the above rights, the Law on Hours of Work also gives health
personnel the right to a forty-hour-work.
3.5. What are the normal hours of work under the law?
The normal hours of work of any employee shall not exceed eight (8) hours
a day. (Art. 83, Labor Code)
3.6. What is overtime work? What is the compensation for overtime work?
Work performed beyond eight (8) hours a day is overtime work.
Work may be performed beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional compensation equivalent to
his regular wage plus at least twenty-five percent (25%) thereof. Work performed
beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day
plus at least thirty percent (30%) hereof. (Art. 87, Labor Code)
3.7. May an employee be required by the employer to perform overtime
work?
An employee may not be required by the employer to perform overtime
work, except in emergency overtime work. (Art. 98, Labor Code)
3.8. What are the cases of emergency overtime work where the employee
may be required by the employer to perform overtime work?
Any employee may be required by the employer to perform overtime work
in any of the following cases:
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(a) When the country is at war or when any other national or local
emergency has been declared by the National Assembly or the Chief Executive.
(b) When it is necessary to prevent loss of life or property or in case of
imminent danger to public safety due to an actual or impending emergency in the
locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or
other disaster or calamity;
(c) When there is urgent work to be performed on machines, installations,
or equipment, in order to avoid serious loss or damage to the employer or some
other cause of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable
goods; and
(e) Where the completion or continuation of the work stated before the
eighth hour is necessary to prevent serious obstruction or prejudice to the business
or operations of the employer.
Any employee required to render overtime work shall be paid the additional
compensation as provided for in Book III, Title I, Chap. I on the Labor Code. (Art.
89, Labor Code)
3.9. In determining whether or not an employee has worked overtime, what
are considered as hours worked?
Hours worked shall include (a) all time during which an employee is
required to be on duty or to be at the prescribed workplace, and (b) all time during
which an employee is suffered or permitted to work.
Rest periods of short duration during working hours shall be counted as
hours worked. (Art. 84, Labor Code)
Rest periods or coffee breaks running form five (5) to twenty (20) minutes
shall be considered as compensable working time. (Book III, Rule I, Sec. 7, LC
Rules and Regulations)
The following general principles shall govern in determining whether the
time spent by an employee is considered hours worked:
a. All hours are hours worked which the employee is required to give to
his employer, regardless of whether or not such hours are spent in productive labor
or involved physical or mental exertion;
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b. An employee need not leave the premises of the workplace in order

that his rest period shall not be counted, it being enough that he stops working,
may rest completely and may leave his workplace, to go elsewhere, whether within
or outside the premises of his workplace;
c. If the work performed was necessary, or it benefited 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;
d. The time during which an employee is inactive by reason of
interruptions in his work beyond his control shall be considered 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 spent by an employee 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.
An employee who is required to remain on call in the employers premises
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.
Attendance at lectures, meetings, training programs, and other similar
activities shall not be counted as working time if all of the following conditions are
met:
a. attendance is outside of the employees regular working hours;
b. attendance is in fact voluntary; and
c. the employee does not perform any productive work during such
attendance. (Book III, Rule I, Secs. 4, 5, and 6, LC Rules and Regulations)
3.10. May undertime be offset by overtime?
No, undertime work on any particular day shall not offset by overtime work
on any other day. Permission given to the employee to go on leave on some other
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day of the week shall not exempt the employer from paying the additional
compensation required for overtime work. (Art. 88, Labor Code)
3.11. How is overtime and other additional remuneration, such as for work
on a rest day or on a special holiday computed?
For purposes of computing overtime and other additional remuneration such
as for work on a rest day, or on a special holiday, the regular wage of an
employee shall include the cash wage only without deduction on account of
facilities provided by the employer. (Art. 90, Labor Code)
3.12. How is the right to a meal period implemented?
Subject to such regulations as the Secretary of Labor may prescribe, it shall
be the duty of every employer to give his employees not less than sixty (60)
minutes time-off for their regular meals. (Art. 85, Labor Code)
Every employer shall give his employees, regardless of sex, not less than
one (1) hours time-off for regular meals, except in the following cases when a meal
period of not less than twenty (20) minutes may be given by the employer provided
that such shorter meal periods is credited as compensable hours worked of the
employee:
a. Where the work is non-manual work in nature or does not involve
strenuous physical exertion;
b. Where the establishment regularly operates not less than sixteen hours
a day;
c. In cases of actual or impending emergencies or there is urgent work to
be performed on the machinery, equipment or installations to avoid serious loss
which the employer would otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable
goods. (Book III, Rule I, Sec. 7, LC Rules and Regulations)
Rest period of short duration during working hours shall be counted as hours
worked. (Art. 84, Labor Code)
3.13. How is the right to a night shift differential implemented?
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Every employee shall be paid a night shift differential of not less than ten
percent (10%) of his regular wage for each hour of work performed between ten
oclock in the evening and six oclock in the morning. (Art. 86, Labor Code)
3.14. How is the right of health personnel to a forty-hour week implemented?
Health personnel in cities and municipalities with a population of at least
one million (1,000,000) or in hospitals and clinics with a bed capacity of at least
one hundred (100) shall hold regular office hours of eight (8) hours a day for five
(5) days a week, or a total of forty (40) hours a week exclusive of time for meals,
except where the exigencies of the service require that such personnel work for six
(6) days or forty-eight (48) hours, in which case they shall be entitled to an
additional compensation of at least thirty per cent (30%) of their regular wage for
work on the sixth day. For purposes of this Article, health personnel shall
include: resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel. (Art. 83, Labor Code)
With the passage of the Magna Carta of Public Health Workers (Republic
Act 7305), the aforementioned provision of the Labor Code covers only private
health personnel.
LAW ON WEEKLY REST PERIODS
3.15. What are the rights of workers under the Law on Weekly Rest Periods?
(1) Right to a weekly rest day;
(2) Right to rest, i.e. right not to be required to work on a rest day (also on
holidays) except in certain emergency cases; and
(3) Right to an additional compensation for work on a rest day or on
special holiday work.
3.16. How is the right to a weekly rest day implemented?
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It shall be the duty of every employer, whether operating for profit or not, to
provide each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days.
The employer shall determine and schedule the weekly rest day of his
employees subject to collective bargaining agreement and to such rules and
regulations as the Secretary of Labor may provide. However, the employer shall
respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds. (Art. 91, Labor Code)
The preference of the employee as to his weekly day of rest shall be
respected by the employer if the same is based on religious grounds. The
employee shall make known his preference to the employer in writing at least
seven (7) days before the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employees as to their rest day based on
religious grounds will inevitably 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, the employer may so schedule the weekly rest
day of their choice for at least two (2) days in a month. (Book III, Rule III, Sec. 4,
LC Rules and Regulations)
Where the weekly rest is given to all employees simultaneously, the
employer shall make known such rest period by means of a written notice posted
conspicuously in the workplace at least one week before it becomes effective.
Where the rest period is not granted to all employees simultaneously and
collectively, the employer shall make known to the employees their respective
schedules of weekly rest through written notices posted conspicuously in the
workplace at least one week before they become effective. (Book III, Rule III,
Sec. 5, LC Rules and Regulations)
3.17. May an employee be required to work on his weekly rest day?
An employee may not be required to work on his weekly rest day except in
certain emergency cases. (Art. 92, Labor Code)
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3.18. When may an employer require his employees to work on a rest day?
The employer may require his employees to work on any day:
(a) In case of actual or 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;
(b) In cases of urgent work to be performed on the machinery, equipment,
or installation, to avoid serious loss which the employer would otherwise suffer;
(c) In the event of abnormal pressures of work due to special
circumstances, where the employer cannot ordinarily be expected to resort to other
measures;
(d) To prevent loss or damage of perishable goods;
(e) Where the nature of the work requires continuous operations and the
stoppage of work may result in irreparable injury or loss to the employer; and
(f) Under other circumstances analogous or similar to the foregoing as
determined by the Secretary of Labor. (Art. 92, Labor Code)
3.19. What is the compensation for work done on a weekly rest day or on a
special holiday?
Where an employee is made or permitted to work on his scheduled rest day,
he shall be paid an additional compensation of at least thirty percent (30%) of his
regular wage.
Work performed on any special holiday shall be paid an additional
compensation of at least thirty percent (30%) of the regular wage of the employee.
Where such holiday work falls on the employees scheduled rest day, he shall be
entitled to an additional compensation of at least fifty percent (50%) of his regular
wage.
Where the collective bargaining agreement or other applicable employment
contract stipulates the payment of a higher premium pay than that prescribed under
this Article, the employer shall pay such higher rate. (Art. 93, Labor Code)
Nothing in the Rule on Hours of Work in the LC Rules and Regulations
shall justify an employer in reducing the compensation of his employees for the
unworked Sundays, holidays, or other rest days which are considered paid off-days
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or holidays by agreement or practice subsisting upon the effectivity of the Labor

Code. (Book III, Rule III, Sec. 8, LC Rules and Regulations)
3.20. Is an employee entitled to an additional compensation for work on a
Sunday?
An employee shall be entitled to such additional compensation for work
performed on Sunday only when it is his established rest day.
When the nature of the work the employee is such that he has no regular
workdays and no regular rest days can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of the regular wage work performed
on Sunday and holiday. (Book III, Rule I, Sec.8, LC Rules and Regulations)
LAW ON HOLIDAY PAY
3.21. What are the rights of workers under the Law on Holiday Pay?
The rights of workers under the above Law are:
1. Right to holiday pay; and
2. Right to an additional compensation for work on a regular holiday.
3.22. How is the right to holiday pay implemented?
(a) Every worker shall be paid his regular daily wage during regular
holidays, except in retail and service establishment regularly employing less than
(10) workers;
(b) The employer may require an employee to work on any holiday but
such employee shall be paid a compensation equivalent to twice his regular rate.
(Art. 94, Labor Code)
3.23. What are the guidelines in the computation of holiday pay
Pursuant to the provisions of the Labor Code, as amended in relation to the

observance of declared holidays and in response to the queries received every time
a Presidential Proclamation or a law is enacted by Congress which declares certain
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days either as a regular holiday, a special day or a special working holiday, the
following guidelines shall be observed by all employers in the private sector1:
1. For regular holidays as provided for under EO 203 (incorporated in EO

292) as amended by RA 91772:

1
DOLE MEMORANDUM CIRCULAR NO. 1 series 2004
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Note Proclamation no.84 s. 2011 signed by President Aquino on The
Rationalization on the observation of Holidays in the Philippiunes. The
proclamation was signed by the President. Proclamation 84 s.2011 reads as
follows:
MALACAAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
PROCLAMATION NO. 84
DECLARING THE REGULAR HOLIDAYS, SPECIAL (NON-WORKING) DAYS, AND
SPECIAL HOLIDAY (FOR ALL SCHOOLS) FOR THE YEAR 2011
WHEREAS, Republic Act (RA) No. 9492, dated July 24, 2007, amended Section 26, Chapter 7, Book I
of Executive Order (EO) No. 292, also known as the Administrative Code of 1987, by declaring certain
days (specific or movable) as special or regular holidays;
WHEREAS, RA No. 9492 provides that holidays, except those which are religious in nature, are moved
to the nearest Monday unless otherwise modified by law, order or proclamation;
WHEREAS, RA No. 9849 provides that the Eidul Adha shall be celebrated as a national holiday;
WHEREAS, the EDSA People Power Revolution, which restored and ushered political, social and
economic reforms in the country, serves as an inspiration to Filipinos everywhere as a nation and as a
people;
NOW, THEREFORE, I, BENIGNO S. AQUINO III, by virtue of the powers vested in me by the
Constitution as President of the Philippines, do hereby declare:
SECTION 1. The following regular holidays and special days for the year 2011 shall be observed in the
country:
A. Regular Holidays
New Years Day January 1 (Saturday)
Araw ng Kagitingan April 9 (Saturday)
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New Year's Day - January 1

Maundy Thursday April 21
Good Friday April 22
Labor Day May 1 (Sunday)
Independence Day June 12 (Sunday)
National Heroes Day August 29 (Last Monday of August)
Bonifacio Day November 30 (Wednesday)
Christmas Day December 25 (Sunday)
Rizal Day December 30 (Friday)
B. Special (Non-Working) Days
Ninoy Aquino Day August 21 (Sunday)
All Saints Day November 1 (Tuesday)
Last Day of the Year December 31 (Saturday)
C. Special Holiday (for all schools)
EDSA Revolution Anniversary February 25 (Friday)
SECTION 2. The proclamations declaring national holidays for the observance of Eidl Fitr and Eidul
Adha shall hereafter be issued after the approximate dates of the Islamic holidays have been determined in
accordance with the Islamic calendar (Hijra) or the lunar calendar, or upon Islamic astronomical
calculations, whichever is possible or convenient. To this end, the National Commission on Muslim
Filipinos (NCMF) shall inform the Office of the President on which day the holiday shall fall.
SECTION 3. The Department of Labor and Employment (DOLE) shall promulgate the implementing
guidelines for this Proclamation.
SECTION 4. This Proclamation shall take effect immediately.
SECTION 5. This Proclamation shall be published in a newspaper of general circulation.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the
Philippines to be affixed.
DONE in the City of Manila, this 20th day of December in the year of Our Lord, Two Thousand and Ten.
(Sgd.) BENIGNO S. AQUINO III
By the President:
(Sgd.) PAQUITO N. OCHOA, JR.
Executive Secretary
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Maundy Thursday - Movable Date
Good Friday - Movable Date
Araw ng Kagitingan - April 9
Labor Day - May 1
Independence Day - June 12
National Heroes Day - Last Sunday of August
Bonifacio Day - November 30
Eidul Fitr - Movable Date
Christmas Day - December 25
Rizal Day - December 30
2. the following rules shall apply:

a. If it is an employee's regular workday
If unworked - 100%
If worked
o 1st 8 hours - 200%
o excess of 8 hours - plus 30% of hourly rate on said day
b. If it is an employee's rest day
If unworked - 100%
If worked
o 1st 8 hours - plus 30% of 200%
o excess of 8 hours - plus 30% of hourly rate on said day
3. For declared special days such as Special Non-Working Day, Special

Public Holiday, Special National Holiday, in addition to the two (2)
nationwide special days (November 1, All Saints Day and December 31,
Last Day of the Year) listed under EO 203, as amended, the following
rules shall apply:
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If unworked
No pay, unless there is a favorable company policy, practice or

collective bargaining agreement (CBA) granting payment of wages
on special days even if unworked.
- If worked
1st 8 hours - plus 30% of the daily rate of 100%

excess of 8 hours - plus 30% of hourly rate on said day
a. Falling on the employee's rest day and if worked

1st 8 hours - plus 50% of the daily rate of 100%
excess of 8 hours - plus 30% of hourly rate on said day
For those declared as special working holidays, the following rules shall
apply:
For work performed, an employee is entitled only to his basic rate. No

premium pay is required since work performed on said days is considered
work on ordinary working days.
3.24. Who are not entitled to holiday pay?
This benefit of holiday pay applies to all employees except:
1. Government employees, whether employed by the National Government or any

of its political subdivisions, including those employed in government-owned
and/or controlled corporations with original charters or created under special laws;
2. Those of retail and service establishments regularly employing less than ten (10)
workers;
3. Househelpers and persons in the personal service of another;
4. Managerial employees, if they meet all of the following
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conditions:
a.) Their primary duty is to manage the establishment in which they are
employed or of a department or subdivision thereof;
b.) They customarily and regularly direct the work of two or more
employees therein;
c.)They have the authority to hire or fire other employees of lower rank; or
their suggestions and recommendations as to hiring, firing, and promotion,
or any other change of status of other employees are given particular weight.
5. Officers or members of a managerial staff, if they perform the following duties
and responsibilities:
a.) Primarily perform work directly related to management policies of their

employer;
b.) Customarily and regularly exercise discretion and independent judgment;
c.) Regularly and directly assist a proprietor or managerial employee in the
management of the establishment or subdivision thereof in which he or
she is employed; or (b) execute, under general supervision, work along
specialized or technical lines requiring special training, experience, or
knowledge; or
d.) execute, under general supervision, special assignments and tasks; and
e.) Do not devote more than twenty percent (20%) of their hours worked in
a workweek to activities which are not directly and closely related to the
performance of the work described in paragraphs 5.1, 5.2, and 5.3 above.
6. Field personnel and other employees whose time and performance is

unsupervised by the employer, including those who are engaged on task or contract
basis, purely commission basis or those who are paid a fixed amount for
performing work irrespective of the time consumed in the performance thereof.
3.25 What is the effect of absences on the right to holiday pay?
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.
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Employees shall grant the same percentage of the holiday pay as the benefit
granted by competent authority in the form of employees compensation or social
security payment, whichever is higher, if they are not reporting for work while on
such benefits.
Where the day immediately preceding the holiday is a non-working 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 non-working
day or rest day. (Book III, Rule IV, Sec. 6, LC Rules and Regulations)
Where there are two (2) successive regular holidays, like Holy Thursday and
Good Friday, an employee may not be paid for both holidays if he absents himself
from work on the day immediately preceding the first holiday, unless he works on
the first holiday, in which case he is entitled to his holiday pay on the second
holiday day. (Book III, Rule IV, Sec. 10, LC Rules and Regulations)
3.25. What is the effect of shutdown and temporary cessation of work on
holiday pay?
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 Rule on Holidays with Pay in the
Labor Code Rules and Regulations.
The regular holiday during the cessation of operation of an enterprise due to
business reverses as authorized by the Secretary of Labor may not be paid by the
employer. (Book III, Rule IV, Sec. 7, LC Rules and Regulations)
3.26. Are private school teachers, employees paid by results, seasonal

workers and workers with no regular working days entitled to holiday pay?
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.
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 earning for the
last seven (7) actual working days preceding the regular holiday; Provided,
19
however, that in no case shall the holiday pay be less than the applicable statutory
minimum wage rate.
Seasonal workers may not be paid the required holiday pay during off-
season when they are not at work.
Workers who have no regular working days shall be entitled to the benefits
provided in the Rule on Holidays with Pay on the Labor Code Rules and
Regulation. (Book III, Rule IV, Sec. 8, LC Rules and Regulations)
3.27. How shall a regular holiday be treated if it falls on an employees rest

day, or on a Sunday?
A regular holiday falling on the employees rest day shall be compensated
accordingly.
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. (Book III, Rule IV, Sec. 9, LC Rules and Regulations)
LAW ON SERVICE INCENTIVE LEAVES
3.28. How is the right to service incentive leave implemented?
(a) Every employee who has rendered at least one year of service shall be
entitled to a yearly service incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the
benefit herein provided, those enjoying vacation leave with pay of at least five
days and those employed in establishments regularly employing less than ten
employees or in establishments exempted from granting this benefit by the
Secretary of Labor after considering the viability or financial condition of such
establishment.
(c) The grant of benefit in excess of that provided herein shall not be
made a subject of arbitration or any court of administrative action. (Art. 95, Labor
Code)
20
3.29. What does the term at least one year of service which is a prerequisite
to the entitlement of service incentive leave, mean?
The term At least one year service shall mean service within 12 months,
whether continuous or broken reckoned from the date the employee started
working, including authorized absences and paid regular holidays unless the
working days in the establishment as a matter of practice or policy, or that
provided in the employment contract, is less than twelve (12) months, in which
case said period shall be considered as one year. (Book III, Rule V, Sec. 3, LC
3.30. Is the service incentive commutable?

The service incentive leave shall be commutable to its money equivalent if
not used or exhausted at the end of the year. (Book III, Rule V, Sec.5, LC Rules
and Regulations)
LAW ON SERVICE CHARGES

3.31. How is the right to service charges implemented?
All service charges collected by hotels, restaurants and similar
establishments shall be distributed at the rate of eighty-five percent (85%) for all
covered employees and fifteen percent (15%) for management. The share of the
employees shall be equally distributed among them. In case the service charge is
abolished, the share of the covered employees shall be considered integrated in
their wages. (Art. 96, Labor Code)
The 15% shall be for disposition by management to answer for losses and
breakages and distribution to employees receiving more than P2,000.00 a month, at
the discretion of the management in the latter case. (Book III, Rule VI, Sec. 3, LC
21
The shares of the employees referred to above shall be distributed and paid
to the employees not less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. (Book III, Rule VI, Sec. 4, LC Rules
and Regulations)
In case the service charge is abolished, the share of covered employees shall
be considered integrated in their wages. The basis of the amount to be integrated
shall be the average monthly share of each employee for the past twelve (12)
months immediately preceding the abolition or withdrawal of such charges. (Book
III, Rule VI, Sec. 5, LC Rules and Regulations)
LAW ON WAGES
4.1. What are the rights of workers under the Law on Wages?
(1) Right to a statutory minimum wage;
(2) Right to a minimum wage duly fixed administratively e.g., by wage
orders;
(3) Right to payment of fair and reasonable wage rates when the payment
is by results;
In addition, there are laws on wages not embodied in the Labor Code, i.e.
PD No. 525, as amended, and PD No. 851. These laws give these rights to
workers, i.e.: -
(1) Right to a cost-of-living allowance;
(2) Right to a 13th month pay.
Related to the above rights that help bring about a fair and living wage, the
Law on Wages also provides for the protection of wages to ensure that workers
shall fully receive the wages they are entitled to receive.
22
4.2. What does wage mean?

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 value, as
determined by the Secretary of Labor, of board, lodging, or other facilities
customarily furnished by the employer to the employee. Fair and reasonable value
shall not include any profit to the employer or to any person affiliated with the
employer. (Art. 97(f), Labor Code)
4.3. What is the concept of a minimum wage? What are the criteria for
minimum wage fixing? Are there situations where it is legal to pay employees
less than the legal minimum wage?
A minimum wage is the lowest wage paid or permitted to be paid; a wage
fixed by legal authority or by contract as the least that may be paid either to
employed persons generally or to a particular category of employed persons.
A minimum wage to be established shall be as nearly adequate as is
economically feasible to maintain the minimum standards of living necessary for
the health, efficiency and general well-being of the employees within the
framework of the national economic and social development program. In the
determination of a minimum wage, the following shall, among other relevant
factors, be considered:
a. Cost of living;
b. Comparable wages and other incomes in the economy;
c. Fair return of the capital invested; and
d. The imperatives of economic and social development. (Art. 123,
Labor Code)
The Secretary of Labor may, to an extent necessary to promote the

employment in severely depressed areas, authorize the payment of sub-minimum
wage rates, but in no case lower than fifty percent (50%) of the applicable
minimum, by enterprises that may be established in such areas to provide
employment opportunities to the residents therein, subject to such terms and
conditions as he may prescribe to insure the protection and welfare of the workers.
23
4.4. What were the statutory minimum wages when the Labor Code took
effect on November 1, 1974. What laws later on increased the statutory
minimum wage?
The minimum wage rates for agricultural and non-agricultural employees
when the Code took effect on November 1, 1974 were those prescribed by law on
such date, i.e. Minimum Wage Law, Rep. Act No. 602, as amended.
Thus, the minimum wage rates for agricultural and non-agricultural
employees on the effectivity of the Labor Code were as follows:
1. Eight pesos a day for non-agricultural workers;
2. Four pesos and seventy-five centavos for agricultural employees;
3. Six pesos a day for employees of retail or service enterprises that do
not regularly employ more than five employees;
4. Eight pesos a day for employees of the National government and all
government-owned and/or controlled corporations;
5. Five pesos a day for employees of provinces, municipalities and cities
or the minimum wages being paid to them at the time of the approval of RA 6129
on 17 June 1970. (Book II, Rule VII, Sec. 1, LC Rules and Regulations)
The above minimum wage rates were later on increased by PD No. 928
(May 1, 1976), as amended by PD Nos. 1389 (May 29, 1978), 1614 (March 14,
1979), 1713 (August 13, 1980), 1715 (December 4, 1980), also PD No. 1364 (May
1, 1978) and Wage Order Nos. 2 (July 6, 1983), 3 (November 7, 1983), 4 (May 1,
1984), 5 and 6 (November 1, 1984). Exec. Order No. 178 (June 1, 1987) increased
the statutory daily minimum wages after integrating the cost of living allowance
under Wage Orders Nos. 1, 2, 3, 4, 5 and 6 into the basic pay of all covered
workers.
4.5. How are wages currently determined?
Republic Act No. 6727 (also known as the Wage Rationalization Act)
mandates the fixing of the minimum wages applicable to different industrial
sectors, namely, non-agriculture, agricultureplantation, and nonplantation,
cottage/handicraft, and retail/service, depending on the number of workers or
capitalization or annual gross sales in some sectors.
24
Republic Act 6727 rationalized wage determination by establishing the

mechanism and proper standards through the creation of Regional Tripartite Wages
and Productivity Boards (RTWPBs) authorized to determine the daily minimum
wage rates in the following different regions based on established criteria:
National Capital Region (NCR) or Metro Manila

Cordillera Administrative Region (CAR)
Region 1 - Northern Luzon or Ilocos
Region 2 - Cagayan Valley
Region 3 - Central Luzon
Region 4-A - CALABARZON (Cavite, Laguna, Batangas,
Rizal, Quezon)
Region 4-B - MIMAROPA (Mindoro, Marinduque, Romblon,
Palawan)
Region 5 - Bicol
Region 6 - Western Visayas
Region 7 - Central Visayas
Region 8 - Eastern Visayas
Region 9 - Western Mindanao or Zamboanga Peninsula
Region 10 - Northern Mindanao
Region 11 - Southern Mindanao or Davao
Region 12 - Central Mindanao or SOCCSKSARGEN (South
Cotabato, North Cotabato, Sultan Kudarat,
- Sarangani, General Santos)
Region 13 - Caraga
Autonomous Region in Muslim Mindanao (ARMM)
The Regional Wage Orders prescribe the daily minimum wage rates per
industry per locality within the region and in some instances depending on the
number of workers and the capitalization of enterprises. The Wage Orders likewise
provide the basis and procedure for application for exemption from compliance
therefrom. Some Wage Orders grant allowances instead of wage increases.
1.6. What is the coverage of wage orders ?

The wage increases prescribed under Wage Orders apply to all private sector
workers and employees receiving the daily minimum wage rates or those receiving
up to a certain daily wage ceiling, where applicable, regardless of their position,
25
designation, or status, and irrespective of the method by which their wages are
paid, except the following:
1. Househelpers, including family drivers and workers in the personal service of

another whose conditions of work are prescribed in Republic Act No. 7655.
2. Workers of registered Barangay Micro Business Enterprises (BMBEs) with

Certificates of Authority issued by the Office of the Municipal or City Treasurer.
The basis of the minimum wage rates prescribed by law shall be the normal
working hours of eight (8) hours a day.
4.7 What are now the daily minimum wage rates in the private sector in the
National Capital Region ?
DAILY MINIMUM WAGE National Capital Region As of January 2010

Cities/Municipality
Caloocan, Las Pias, Makati, Malabon,
Mandaluyong, Manila, Marikina,
Muntinlupa, Navotas, Paranaque, Pasay,
Pasig, Quezon, San Juan, Taguig,
Valenzuela, and Pateros
Sector/Industry Minimum Basic Wage COLA Total
Wage under under W.O. under
W.O. No. No. NCR-14b W.O. No.
NCR-13a NCR-14c
Non-agriculture 362.00 15.00 5.00 382.00
Agriculture
Plantation 325.00 15.00 5.00 345.00
Nonplantation 325.00 15.00 5.00 345.00
Private Hospitals
With bed capacity of 100 or less 325.00 15.00 5.00 345.00
Retail/Service Establishments
Employing 15 workers or less 325.00 15.00 5.00 345.00
Manufacturing Establishments
Employing less than 10 workers 325.00 15.00 5.00 345.00
a Effectivity date is on 28 August 2007. b Effectivity date is on 14 June 2008. c Integration of P5.00
COLA into the basic wage on 28 August 2008.
26
4.8 Who are monthly paid and daily paid employees?

Monthly-paid employees are those who are paid every day of the month,
including unworked rest days, special days, and regular holidays.
Daily-paid employees are those who are paid on the days they actually
worked and on unworked regular holidays.
4.9 What is the rule on double indemnity?
Any person, corporation, trust, firm, partnership, association or entity which

refuses or fails to pay any of the prescribed increases or adjustments in the wage
rates made in accordance with this Act shall be punished by a fine not less than
Twenty-five thousand pesos (P25,000) nor more than One hundred thousand pesos
(P100,000) or imprisonment of not less than two (2) years nor more than four (4)
years, or both such fine and imprisonment at the discretion of the court: Provided,
That any person convicted under this Act shall not be entitled to the benefits
provided for under the Probation Law.
The employer concerned shall be ordered to pay an amount equivalent to

double the unpaid benefits owing to the employees: Provided, That payment of
indemnity shall not absolve the employer from the criminal liability imposable
under this Act.
If the violation is committed by a corporation, trust or firm, partnership,

association or any other entity the penalty of imprisonment shall be imposed upon
the entity's responsible officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager, managing director or partner.
(Section 1, Republic Act 8188 Double Indemnity Act AN ACT INCREASING
THE PENALTY AND INCREASING DOUBLE INDEMNITY FOR
VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN
THE WAGE RATES, AMENDING FOR THE PURPOSE SECTION
TWELVE OF REPUBLIC ACT NUMBERED SIXTY-SEVEN HUNDRED
TWENTY-SEVEN, OTHERWISE KNOWN AS THE WAGE
RATIONALIZATION ACT)
27
4.10 Who are covered employers under PD No. 851 entitled to month pay?
On August 13, 1986, President Corazon C. Aquino issued Memorandum

Order No. 28 which provides as follows:
Section 1 of Presidential Decree No. 851 is hereby modified to the extent
that all employers are hereby required to pay all their rank-and-file employees a
13th month pay not later than December 24 of every year.
Before its modification by the aforecited Memorandum Order, PD No. 851
xcludes from entitlement to the 13th month pay those employees who were
receiving a basic salary of more than P1,000.00 a month. With the removal of the
salary ceiling of P1,000.00, all rank and file employees are now entitled to a 13th
month pay regardless of the amount of the basic salary that they receive in a
month, if their employers are not otherwise exempted from the application of PD
No. 851. Such employees are entitled to the benefit regardless of their designation
or employment status, and irrespective of the method by which their wages are
paid, provided that they have worked for at least one (1) month during a calendar
year. (Guidelines on the implementation of the modified 13th Month Pay, E.B. No.
86-12, Nov. 24, 1986)
4.10 Are employees paid by results, those with multiple employers, private
school teachers and resigned or separated employees entitled to the 13th
month pay?
Employees who are paid on piece work basis are by law entitled to the 13th
month pay.
Employees who are paid a fixed or guaranteed wage plus commission are
also entitled to the mandated 13th month pay, based on their total earnings during
the calendar year, i.e., on both their fixed or guaranteed wage and commission.
Government employees working part time in a private enterprise, including
private educational institutions, as well as employees working in two or more
private firms, whether on full or part-time basis, are entitled to the required 13th
month pay, regardless of their total earnings from each or all their employers.
Private school teachers, including faculty members of universities and
colleges, are entitled to the required 13th month pay, regardless of the number of
months they teach or are paid within a year, if they have rendered service at least
one (1) month within a year.
28
An employee who has resigned or whose services were terminated at any

time before the time for payment of the 13th month pay is entitled to this monetary
benefits in proportion to the length of time he worked during the year, reckoned
from the time he started working during the calendar year up to the time of his
resignation or termination from the service. Thus, if he worked only from January
up to September, his proportionate 13th month pay should be equivalent of 1/12 of
the total basic salary he earned during that period.
The payment of the 13th month pay may be demanded by the employee upon
the cessation of employer-employee relationship. This is consistent with the
principle of equity that as the employer can require the employee to clear himself
of all liabilities and property accountability, so can the employee demand the
payment of all benefits due him upon the termination of the relationship.
(Guidelines on the implementation of the Modified 13th Month Pay Law, E.B. No.
86-12, Nov. 24, 1986)
4.11. How is the 13th month pay computed?

The minimum 13th month pay required by PD No. 851 shall not be less than
one twelfth (1/12) of the basic salary of an employee within a calendar year. For
the year 1986, the computation of 13th Month Pay shall be based on the basic pay
earned by the employee from January up to December of the said year.
The basic salary of an employee for the purpose of computing the 13th month
pay shall include all remunerations or earnings paid by his employer for services
rendered but does not include allowances and monetary benefits which are not
considered or integrated as part of the regular or basic salary, such as the cash
equivalent of unused vacation and sick leave credits, overtime, premium, night
differentials and holiday pay, and cost-of-living allowances. However, these
salary-related benefits should be included as part of the basic salary in the
computation of the 13th month pay if by individual or collective agreement,
company practices or policy, the same are treated as part of the basic salary of the
employees. (Guidelines on the implementation of the Modified 13th Month Pay
Law, E.B. No. 86-12, Nov. 24, 1986)
4.12. When is the 13th month pay to be paid?
29
The required 13th month pay is to be paid not later than December 24 of
each year. An employer, however, may give to his employees one half (1/2) of the
required 13th month pay before the opening of the regular school year and the
other half on or before the 24th of December of every year. The frequency of
payment of this monetary benefit may be subject of agreement between the
employer and the recognized collective bargaining agent of the employees.
(Guidelines on the implementation of the Modified 13th Month Pay Law, E.B. No.
86-12, Nov. 24, 1986)
4.13. Is the 13th month pay to be credited as part of regular wage of
employees?
The mandated 13th month pay need not be credited as part of regular wage
of employees for purposes of determining overtime and premium pays, fringe
benefits as well as contributions to the state insurance fund, Social Security,
Medicare and private retirement plans. (Guidelines on the implementation of the
Modified 13th Month Pay Law, E.B. No. 86-12, Nov. 24, 1986)
4.14. How does the Law on Wages in the Labor Code provide for the
protection of wages to ensure that workers shall fully receive the wages they
are entitled to receive?
The law provides for the protection of wages by recognizing these rights:
1. The right to be paid wages in legal tender at certain regular intervals
and at or near the place of undertaking.
2. The right to be paid directly.
3. In case of a worker who works for a contractor who is in turn
performing work for another, the right of said worker to claim unpaid
wages not only against his direct employer (the contractor) but against
his indirect employer (the person for whom the contractor has
performed some work).
4. The right to enjoy first preference as regard unpaid wages in case of
bankruptcy.
5. In connection with an action to recover unpaid wages, the right not to
pay attorneys fees exceeding ten percent (10%) of the amount of
wages recovered.
30
6. The right to dispose of wages without any limitation or interference

from the employer.
7. The right of a worker against any deduction from his wage, against
requirement for deposits for loss or damage, except as duly authorized
against withholding and kick backs and against deduction to ensure
employment.
8. In connection with a worker who has filed any complaint against his
employer, or has testified or is about to testify in such proceedings,
the right of said worker against any retaliatory measures that an
employer may make against the worker.
9. The right against the elimination or diminution of benefits enjoyed at
the time of the promulgation of the Labor Code.
4.15. To whom shall wages be paid?

Wages shall be paid directly to the workers to whom they are due, except:
(a) In cases of force majeure rendering such payment impossible or under
other special circumstances to be determined by the Secretary of Labor in
appropriate regulations, in which case the worker may be paid through another
person under written authority given by the worker for the purpose; or
(b) Where the worker has died, in which case the employer may pay the
wages of the deceased worker to the heirs of the latter without the necessity of
interstate proceedings. The claimants, if they are all of age, shall execute an
affidavit attesting to their relationship to the deceased and the fact that they are his
heirs, to the exclusion of all other persons. If any of the heirs is a minor, the
affidavit shall be executed on his behalf by his natural guardian or next of kin. The
affidavit shall be presented to the employer who shall make payment through the
Secretary of Labor or his representative. The representative of the Secretary of
Labor shall act as referee in dividing the amount paid among the heirs. The
31
payment of wages under this Article shall absolve the employer of any further
liability with respect to the amount paid. (Art. 105, Labor Code)
4.16. Where shall wages be paid?

Payment of wages shall be made at or near the place of undertaking, except
as otherwise provided by such regulations as the Secretary of Labor may prescribe
under conditions to ensure greater protection of wages. (Art. 104, Labor Code)
Section 7 of Republic Act 6725 allows employers to pay wages through
banks upon permission of the majority of the employees.
4.17. In what form shall an employer pay the wages of an employee?
No employer shall pay the wages of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits or any object other than legal
tender, even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed when such
manner of payment is customary on the date of effectivity of this Code, or is
necessary because of special circumstances as specified in appropriate regulations
to be issued by the Secretary of Labor or is stipulated in a collective bargaining
agreement. (Art. 102, Labor Code)
4.18. How often shall wages be paid?
Wages shall be paid at least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on account of force majeure or
circumstances beyond the employers control, payment of wages on or within the
time herein provided cannot be made, the employer shall pay the wages
immediately after such force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which
cannot be completed in two (2) weeks shall be subject to the following conditions,
in the absence of a collective bargaining agreement or arbitration award:
(1) That payments are made at intervals not exceeding sixteen (16) days,
in proportion to the amount of work completed; and
(2) That final settlement is made upon completion of the work. (Art. 103,
Labor Code)
32
4.19. What are some prohibitions imposed by the Labor Code regarding
wages?
Some prohibitions imposed by the Labor Code regarding wages are:
1. Re: disposition of wages, no employer shall limit or otherwise
interfere with the freedom of any employee to dispose of his wages. He shall not
in any manner force, compel, or oblige his employees to purchase merchandise
from him. (Art. 112, Labor Code)
2. Re: Wage Deduction; 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 the 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 dues, in cases 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; and
(c) In cases where the employer is authorized by law or regulations issued
by the Secretary of Labor. (Art. 113, Labor Code)
3. Re: Deposits for loss or damages; No employer shall require his
worker to make deposits from which deductions shall be made for the
reimbursement of loss or damage to tools, materials, or equipment supplied by the
employer, except when the employer is engaged in such trades, occupations or
business where the practice of making deductions or requiring deposits is a
recognized one, or is necessary or desirable as determined by the Secretary of
Labor in appropriate rules and regulations. (Art. 114, Labor Code)
Further to the above, no deduction from the deposits of an employee for the
actual amount of the loss or damage shall be made unless the employee has been
heard thereon, and his responsibility has been clearly shown. (Art. 115, Labor
Code)
4. Re: Withholding of wages and kickbacks; It shall be unlawful for
any person directly or indirectly to withhold any amount from the wages of a
worker or induce him to give up any part of his wages by force, stealth,
intimidation, threat or dismissal or by any other means whatsoever without the
workers consent. (Art. 116, Labor Code)
33
5. Re: Deduction to ensure employment; It shall be unlawful to make

any deduction from the wages of any employee for the benefit of the employer or
his representative or intermediary as consideration of a promise of employment or
retention in employment. (Art. 117, Labor Code)
6. Re: Retaliatory measures; It shall be unlawful for an employer to
refuse to pay or reduce the wages and benefits, discharge or in any manner
discriminate against any employee who has filed any complaint or instituted any
proceeding under the Title of the Labor Code on Wages or has testified or is about
to testify in such proceedings. (Art. 118, Labor Code)
7. Re: False reporting; It shall be unlawful for any person to make any
statement, report, or record filed or kept pursuant to the provisions of the Labor
Code knowing such statement, report or record to be false in any material respect.
4.20. What are the Labor Code provisions on the obligations of a direct
employer, indirect employer, contractor and subcontractor re: the payment
of wages to the employees or for any violation of any provision of the Labor
Code?
As to contractors and sub-contractors, the Labor Code has this provision:
Whenever 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.
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
34
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 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. (Art. 106, Labor Code)
As regards an indirect employer, the Labor Code has this provision: The
provisions of Art. 106 of the Labor Code on contractors and subcontractors shall
likewise 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. (Art. 107, Labor Code)
Re: Potsing of bond, the Labor Code provides: An employer or 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. (Art. 108, Labor Code)
Re: The solidary liability of the employer, indirect employer, contractor or
subcontractor, the Labor Code provides: The provisions of existing laws to the
contrary notwithstanding, every employer or indirect employer shall be held
responsible with his contractor or subcontractor for any violation of any provision
of this Code. For purposes of determining the extent of their civil liability under
the Chapter on Payment of Wages in The Labor Code, they shall be considered as
direct employers. (Art. 109, Labor Code)
35
4.21. What kind of preference does a worker enjoy in the event of bankruptcy
or liquidation of an employers business?
In the event of bankruptcy or liquidation of an employers business, his
workers shall enjoy first preference as regards their unpaid wages and other
monetary claims, any provision of law to the contrary notwithstanding. Such
unpaid wages and monetary claims shall be paid in full before the claims of the
Government and other creditors may be paid. (Art. 110, Labor Code, as amended
by Rep. Act No. 6715)
4.22. What attorneys fees may be assessed, demanded or accepted, in
proceedings for the recovery of wages?
In cases of unlawful withholding of wages, the culpable party may be
assessed attorneys fees equivalent to ten percent (10%) of the amount of wages
recovered.
It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of the wages, attorneys fees, which
exceed ten percent (10%) of the amount of wages recovered. (Art. 111, Labor
Code)
LAWS ON WORKING CONDITIONS FOR SPECIAL GROUPS OF

EMPLOYEES
5.1. In the Labor Code, there are Laws for Working Conditions for special
groups of employees. What are these special groups of employees?
The special groups of employees for whom there are laws for their working
conditions are:
1. Women;
2. Minors;
3. Househelpers; and
4. Industrial Homeworkers.
36
LAW ON EMPLOYMENT OF WOMEN

5.2. The 1987 Constitution (in Art. XIII, Sec. 14) mandates that The State
shall protect working women by providing safe and healthful working
conditions, taking into account their maternal function, and such facilities and
opportunities that will enhance their welfare and enable them to realize their
full potential in the service of the nation. How is this mandate implemented
by the Law on Employment of Women?
In implementing this constitutional mandate the Law on Employment of
Women has provisions on:
1. Night work prohibition on working women;
2. Facilities for working women;
3. Family planning services; and
4. Prohibition of discrimination against working women.
There are also provisions that make certain acts against working women
unlawful.
The Labor Code also provides for classification of certain women workers.
There are also other statutory benefits that certain women may be entitled to,
particularly those who are victims of violence against women and children as
defined under Republic Act 9262.
Private sector women employees who are victims as defined in RA 9262

shall be entitled to the paid leave benefit under such terms and conditions provided
herein. The leave benefit shall cover the days that the woman employee has to
attend to medical and legal concerns.
To be entitled to the leave benefit, the only requirement is for the victim-
employee to present to her employer a certification from the barangay chairman
(Punong Barangay) or barangay councilor (barangay kagawad) or prosecutor or
37
the Clerk of Court, as the case may be, that an action relative to the matter is
pending.
In addition to other paid leaves under existing labor laws, company policies,
and/or collective bargaining agreements, the qualified victim-employee shall be
entitled to a leave of up to ten (10) days with full pay, consisting of basic salary
and mandatory allowances fixed by the Regional Wage Board, if any. The said
leave shall be extended when the need arises, as specified in the protection order
issued by the barangay or the court.
The usage of the ten-day leave shall be at the option of the woman
employee. In the event that the leave benefit is not availed of, it shall not be
convertible into cash and shall not be cumulative.
5.3. How is the night work prohibition on working women implemented?

No woman, regardless of age, shall be employed or permitted or suffered to
work, with or without compensation:
(a) In any industrial undertaking or branch thereof between ten oclock at
night and six oclock in the morning of the following day; or
(b) In any commercial or non-industrial undertaking or branch thereof,
other than agricultural, between midnight and six oclock in the morning of the
following day; or
(c) In any agricultural undertaking at nighttime unless she is given a
period of rest not less than nine (9) consecutive hours. (Art. 130, Labor Code)
The above prohibitions, however, shall not apply in any of the following
cases:
(a) In cases of actual or impending emergencies caused by serious
accident, fire, flood, typhoon, earthquake, epidemic or other disasters or calamity,
to prevent loss of life or property, or in cases of force majeure or imminent danger
to public safety;
(b) In cases 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;
38
(d) Where the woman employee holds a responsible position of

managerial or technical nature, or where the woman employee has been engaged to
provide health and welfare service;
(e) Where the nature of the work requires the manual skill and dexterity
of women workers and the same cannot be performed with equal efficiency by
male workers;
(f) Where the woman employees are immediate members of the family
operating the establishment or undertaking; and
(g) Under other analogous cases exempted by the Secretary of Labor in
appropriate regulations. (Art. 131, Labor Code)
5.4. What standards and facilities shall be established for working women?
The Secretary of Labor shall establish standards that will insure the
safety and health of women employees. In appropriate cases, he shall, by
regulations, require any employer to:
(a) Provide seats proper for women and permit them to use such seats
when they are free from working and during working hours, provided they can
perform their duties in this position without detriment to efficiency;
(b) To establish separate toilet rooms and lavatories for men and women
and provide at least a dressing room for women;
(c) To establish a nursery in a workplace for the benefit of the women
employees therein; and
(d) to determine appropriate minimum age and other standards for
retirement or termination in special occupations such as those of flight attendants
and the like. (Art. 132, Labor Code)
5.5. What are the Labor Code provisions on family planning?

(a) Establishments which are required by law to maintain a clinic or
infirmary shall provide free family planning services to their employees which
shall include, but not limited to, the application or use of contraceptive pills and
intrauterine devices.
(b) In coordination with other agencies of the Government engaged in the
promotion of family planning, the Department of Labor shall develop and
39
prescribe incentive bonus schemes to encourage family planning among female

workers in any establishment or enterprise. (Art. 134, Labor Code)
5.6. How is the prohibition of discrimination against working women
implemented?
It shall be unlawful for any employer to discriminate against any woman

employee with respect to terms and conditions of employment solely on account of
her sex.
The following are acts of discrimination:
a. Payment of a lesser compensation, including wage, salary or other form of

remuneration and fringe benefits, to a female employees as against a male
employee, for work of equal value; and
b. Favoring a male employee over a female employee with respect to

promotion, training opportunities, study and scholarship grants solely on
account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided
in this Article or any violation of the rules and regulations issued pursuant to
Section 2 hereof shall be penalized as provided in Articles 288 and 289 of this
Code: Provided, That the institution of any criminal action under this provision
shall not bar the aggrieved employee from filing an entirely separate and distinct
action for money claims, which may include claims for damages and other
affirmative reliefs. The actions hereby authorized shall proceed independently of
each other. ( Article 135, Labor Code as amended by Republic Act No. 6725, May
12, 1989)
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 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. (Article
136, Labor Code)
5.7. To protect working women, the Labor Code prohibits an employer

form doing certain acts. What are these prohibited acts?
40
It shall be unlawful for any employer:

(1) To deny any woman employee the benefits provided for in the
Chapter on Employment of Women in the Labor Code or to discharge any woman
employed by him for the purpose of preventing her from enjoying any of the
benefits provided under the Code;
(2) To discharge such woman on account of her pregnancy, or while on
leave or in confinement due to her pregnancy; or
(3) To discharge or refuse admission of such woman upon returning to
her work for fear that she may again be pregnant. (Art. 137, Labor Code)
5.8. How are certain women workers classified under the Labor Code?
Any woman who is permitted or suffered to work, with or without
compensation, in any night club, cocktail lounge, massage clinic, bar or similar
establishment, under the effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of Labor, shall be
considered as an employee of such establishment for purposes of labor and social
legislation. (Art. 138, Labor Code)
LAW ON THE EMPLOYMENT OF MINORS
5.9. How does the Law on Employment of Minors protect minors who are
employed?
The law protects minors who are employed by (1) providing for a minimum
employable age and (2) prohibiting child discrimination.
(a) Thus, No child below fifteen (15) years of age shall be employed,
except when he works directly under the sole responsibility of his parents or
guardians, 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 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. (Art. 139, Labor
Code)
41
Re: prohibition against child discrimination; It is provided that no employer

shall discriminate against any person in respect to terms and conditions of
employment on account of his age. (Art. 140, Labor Code)
LAW ON THE EMPLOYMENT OF HOUSEHELPERS
5.10. Who are househelpers?

Househelpers are those engaged in the domestic or household service.
Domestic or household service shall mean services in the employers home
which is usually necessary or desirable for the maintenance and enjoyment thereof
and includes ministering to the personal comfort and convenience of the members
of the employers household, including services of the family drivers. (Art. 141,
Labor Code)
5.11. What are the rights of househelpers under the Labor Code?
The rights of househelpers under the Labor Code includes:
1. The right to a contract of domestic service that shall not last for more
than two years;
2. The right to a minimum wage;
3. The right to an opportunity for education;
4. The right to just and humane treatment;
5. The right to free board, lodging and medical attendance;
6. The right to an indemnity for unjust termination of services; and
7. The right to an employment certification.
LAWS ON TERMINATION AND RETIREMENT
LAW ON TERMINATION OF EMPLOYMENT
16.1 The Constitution of the Philippines in Art. XIII, Sec. 3 provides,

among others, that workers shall be entitled to security of tenure. What is
security of tenure? How is this right to security of tenure implemented?
42
The constitutional right to security of tenure is implemented, as regards those

employed in the private sector, by Title I, Book Six of the Labor Code which deals
with the Termination of Employment. The key Article of this Title, namely,
Article 279 provides:
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 on
Termination of Employment in the Labor Code. An employee who is unjustly
dismissed from work shall be entitled to reinstatement without loss of seniority
rights and other privileges and 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.
Analyzing the above legal provision, it is clear that an employees right to

security of tenure is recognized and guaranteed when the employer is prohibited
from terminating the services of an employee except for a just cause when
otherwise authorized by law.
16.2 Are employees of all kinds of establishments or undertakings

covered by the provision of the Labor Code implementing the right to security
of tenure?
The provisions of the Title on Termination of Employment in the Labor Code

shall apply to all establishments or undertakings whether for profit or not.
(Art.278, Labor Code)
16.3 It is in cases of regular employment that employees are entitled to

security of tenure. When is there regular employment as differentiated from
casual employment?
The provisions of written agreement to the contrary notwithstanding and

regardless of 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,
43
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 services 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 a
regular employee with respect to the activity in which he is employed and his
employment shall continue while such actually exists. (Art. 280, Labor Code)
An employee who is allowed to work after probationary period shall be

considered a regular employee. (Art. 281, Labor Code; Sec. 5(c), Rule I, Book VI,
Rules)
16.4 What is probationary employment? What is the maximum period of

probationary employment? Is the probationary entitled to security of tenure?
A probationary employee is an employee who has been engaged on a

probationary basis. (Art. 281, Labor Code)
Probationary employment shall not exceed six (6) months from the date
employee started working unless it is covered by an apprenticeship agreement
stipulating a longer period. (Art. 281, Labor Code)
Where the work for which an employee has been engaged is learnable or
apprenticeable in accordance with the standards prescribed by the Department of
Labor, the probationary employment period of the employee shall be limited to the
authorized learnership or apprenticeship period, which is applicable.
Where the work is neither learnable nor apprenticeable, the probationary

employment period shall not exceed 6 months reckoned from the date the
employee actually started working. (Sec. 6(a,b), Rule I, Book VI, Rules)
The services of an employee who has been engaged on probationary basis

may be terminated only for a just cause or when authorized by existing laws, or
when he fails to qualify as a regular employee in accordance with reasonable
standards prescribed by the employer and made known by the employer to the
44
employee at the time of his engagement. (Art. 281, Labor Code; Sec. 6(d), Rule I,
Book VI, Rules)
In all cases involving employees engaged on probationary basis, 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. (Sec. 6(e), Rule I,
Book VI, Rules)
16.5. What are the causes on the basis of which an employer may
terminate the services of an employee?
An employer may terminate an employment for any of the following causes:
(a) Serious misconduct or willful 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 willful breach by the employee of the trust reposed in him by
his employer of his duly authorized representative;
(d) Commission of a crime or offense by the employee against the person

of his employer or any immediate member of his family or his duly authorized
representative; and
(e) Other causes analogous to the foregoing. (Art. 282, Labor Code)
16.6. What are the authorized causes on the basis of which an employer
may also terminate the services of an employee?
The employer may also terminate the employment of any employee due to
the installation of labor saving devices, redundancy, retrenchment to prevent losses
or the closing or cessation of operation of the establishment or undertaking unless
the closing is for the purpose of circumventing the provisions of the Title on
Termination of Employment in the Labor Code. (Art. 283, Labor Code)
45
16.7. Is the disease on the part of the employee an authorized cause for
termination?
An employer may terminate the services of an employee who has been

found to be suffering from any disease and whose continued employment is
prohibited by law or is prejudicial to his health as well as to the health of his co-
employees. (Art.284 , Labor Code)
Where the employee suffers from a disease and his continued employment is
prohibited by law or prejudicial to his health or to the health of his co-employees,
the employer shall not terminate his employment unless there is a certification by a
competent public health authority that the disease is of such a nature or such as
stage that it cannot be cured within a period of six (6) months even with proper
medical treatment. If the disease or ailment can be cured within the period, the
employer shall not terminate the employee but shall ask the employee to take a
leave. The employer shall reinstate such employee to his former position
immediately upon restoration of his normal health. (Sec. 8, Rule I, Book VI,
Rules)
16.8. What is the legal procedure that an employer should follow in the
termination of an employee?
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 Article 283 of the Labor Code
the employer shall furnish the workers whose employment is sought to be
terminated a written notice containing a statement of the causes for termination and
shall afford the latter 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 promulgated pursuant to the guidelines set by the Department of
Labor and Employment. 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 National Labor
Relations Commission. The burden of proving that the termination was for a valid
or authorized cause shall rest on the employer. (Art. 277(b), Labor Code)
46
Any employer who seeks to dismiss a worker shall furnish him a written
notice stating the particular acts or omission constituting the grounds for his
dismissal. In cases of abandonment of work, the notice shall be served at the
workers last known address. ( Sec. 2, Rule I, Book VI, Rules)
The worker may answer the allegations stated against him in the notice of
dismissal within a reasonable period from receipt of such notice. The employer
shall afford the worker ample opportunity to be heard and to defend himself with
the assistance of his representative, if he so desires. (Sec. 5, Rule I, Book VI,
Rules)
The employer shall immediately notify a worker in writing of a decision to

dismiss him stating clearly the reasons therefor. (Sec. 6, Rule I, Book VI, Rules)
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 Commission. ( Sec. 7, Rule I, Book VI, Rules)
Cases involving the dismissal of a worker shall be decided by the Labor

Arbiter within 20 working days from the date of submission of such cases for
decision. ( Sec. 8, Rule I, Book VI, Rules)
16.9. May an employer who seeks to dismiss a worker place such

worker under preventive suspension? For what grounds may said worker be
under preventive suspension? For how long may such preventive suspension
last? After such preventive suspension, what is the employer to do?
The employer may place the worker concerned under preventive suspension
if his continued employment poses a serious and imminent threat to the life or
property of the employer or of his co-workers. ( Sec. 3, Rule I, Book VI, Rules)
No preventive suspension shall last longer than 30 days. The employer shall
thereafter reinstate the worker in his former or in a substantially equivalent
position or the employer may extend the period of suspension provided that during
the period of extension, he pays the wages and other benefits due to the worker. In
such case, the worker shall not be bound to reimburse the amount paid to him
47
during the extension if the employer decides, after completion of the hearing, to
dismiss the worker. ( Sec. 4, Rule I, Book VI, Rules)
16.10. What power does the Secretary of Labor have while a termination
case is pending?
The Secretary of Labor 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 Department of Labor and Employment before whom such dispute is
pending that the termination may cause a serious labor dispute or is in
implementation of a mass lay-off. (Art. 227(b), Labor Code; Sec. 9, Rule I, Book
VI, Rules)
16.11. When the employer wishes to terminate the employment of any

employee due to the installation of labor saving devices, redundancy,
retrenchment to prevent losses or the closing or cessation of operation of the
establishment or undertaking, how should such employer effect the
termination?
The employer may effect the termination by serving a written notice on the
workers and the Ministry of Labor and Employment at least one (1) month before
the intended date thereof. (Art. 283, Labor Code)
16.12. Are there any benefits and privileges for an employee who has
been separated from work for just cause?
The separation from work of an employee for just cause does not entitle him
to the termination pay provided in the Labor Code, without prejudice, however, to
whatever rights, benefits and privileges he may have under the applicable
individual or collective bargaining agreement with the employer or voluntary
employer policy or practice. ( Sec. 7, Rule I, Book VI, Rules)
16.13. What right does an employee who is unjustly dismissed have?
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
48
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. (Art. 279, Labor Code)
16.14. How is reinstatement effected?
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. (Sec. 4(a), Rule
I, Book V, Rules)
In case the establishment where the employee is to be reinstated has closed or

ceased operations 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 at least to one month salary or to one
month salary for every year of service, whichever is higher, a fraction of at least
six (6) months being considered as one whole year. (Sec. 4(b), Rule I, Book V,
Rules)
16.15. In case of termination due to the installation of labor saving

devices or redundancy, what separation pay is the worker entitled to receive
from the employer?
In case of termination due to the installation of labor saving devices or

redundancy, the worker affected thereby shall be entitled to a separation pay
equivalent to at least his one (1) month pay for every year of service, whichever is
higher.
16.16. In case of closures or cessation of operations of establishment or

undertaking not due to business losses or financial reverses, what is the
separation pay?
49
In case of closures or cessation of operations of establishment or undertaking

not due to business losses or financial reverses, the separation pay shall be
equivalent to one (1) month pay or at least one-half (1/2) month pay for every year
of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year. (Art. 283, Labor Code)
16.17. In case an employee is terminated because he has been found to be

suffering from a disease and his continued employment is prohibited by law
or is prejudicial to his health as well as to the health of his co-employees, what
separation pay is such employee entitled to receive?
Such employee is to be paid separation pay equivalent to at least one (1)

month salary or to one-half (1/2) month salary for every year of service, whichever
is greater, a fraction of at least six (6) months being considered as one whole year.
16.18. What is the basis for the computation of the termination pay?
The computation of the termination (separation) pay of an employee shall be

based on his latest salary rate, unless the same was reduced by the employer to
defeat the intention of the Labor Code, in which case the basis of computation shall
be the rate before its deduction. (Sec. 10, Rule I, Book V, Rules)
16.19. Is employment deemed terminated during suspension of the

operation of a business or undertaking or the fulfillment by employee of a
military or civic duty? What is the obligation of the employer to an employee
who fulfills a military or civic duty and is, thus, unable to work during his
fulfillment of such duty?
The bona fide suspension of the operation of a business or undertaking for a

period not exceeding six (6) months, or the fulfillment by the employee of a
military or civic duty shall not terminate employment. In all such cases, the
employer 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. (Art. 286, Labor Code)
50
The employer-employee relationship shall be deemed suspended in case of

suspension of operation of the business or undertaking of the employer for a period
of not exceeding six (6) months, unless the suspension is for the purpose of
defeating the rights of the employees under the Labor Code, and in case of
mandatory fulfillment by the employee of a military or civic duty. The payment of
wages of the employee as well as the grant of other benefits and privileges while
he is on military or civic duty shall be subject to special laws and decrees and to
the applicable individual or collective bargaining agreement and voluntary
employer practice or policy. (Sec. 12, Rule I, Book VI, Rules)
16.20. Under what conditions may an employee terminate the employer-

employee relationship?
An employee may terminate without just cause the employer-employee

relationship by serving a written notice on the employer at least one (1) month in
advance. The employer upon whom no such notice was served may hold the
employee liable for damages.
An employee may put to an end to the relationship without serving any notice
on the employer for any of the following just causes:
1. Serious insult by the employer or his representative on the honor and

person of the employees;
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; and
4. Other causes analogous to any of the foregoing. (Art. 285, Labor

Code)
16.21. What certification of employment and report of dismissal is the

employer required to make with respect to the terminations or dismissals that
he makes?
51
A dismissed worker shall be entitled to receive, on request, a certification

from the engagement and termination of his employment and the type or types of
work on which he is employed. (Sec. 10, Rule I, Book VI, Rules)
The employer shall submit a monthly report to the Regional Office having
jurisdiction over the place of work all dismissals affected by him during the month,
specifying therein the names of the dismissed workers, the reasons for their
dismissal, the dates of commencement and termination of employment, the
positions last held by them and such other information as may be required by the
Ministry for policy guidance and statistical purposes. (Sec. 11, Rule I, Book VI,
Rules)
LAW ON RETIREMENT FROM SERVICE
16.22. When may an employee be retired?
Any employee may be retired upon reaching the retirement age established in
the collective bargaining agreement or other applicable employment contract.
In the absence of any collective bargaining agreement or other applicable

agreement concerning terms and conditions of employment which provides for
retirement at an older age, an employee may be retired upon reaching the age of
sixty (60) years. (Sec. 13, Rule I, Book VI, Rules)
16.23. What benefit is an employee entitled to receive in case of

retirement?
In case of retirement, the employee shall be entitled to receive such

retirement benefits as he may have earned under existing laws and any collective
bargaining or other agreements. (Art. 287, Labor Code)
An employee who is retired pursuant to a bona-fide retirement plan or in

accordance with the applicable individual or collective agreement or established
employer policy shall be entitled to all the retirement benefits provided therein or
to termination pay equivalent at least to one-half month salary for every year of
service, whichever is higher, a fraction of at least six (6) months being considered
as one whole year. (Sec. 14(a), Rule I, Book V, Rules)
52
Where both the employer and the employee contribute to the retirement plan,
agreement or policy, the employers total contribution thereto shall not be less than
the total termination pay to which the employee would have been entitled had there
been no such retirement fund. In case the employers contribution is less than the
termination pay, the employee is entitled to receive, the employer shall pay the
deficiency upon the retirement of the employee. (Sec. 14(b), Rule I, Book V,
Rules)
The above provisions on retirement benefits shall apply where the employee
retires at the age of sixty (60) years or older. (Sec. 14(c), Rule I, Book V, Rules)
16.24 What are the rules on retirement for those in the mining industry ?
The retirement age of underground mine employees has been reduced to a

much lower age under Republic Act 8558. For this purpose, an underground mine
employee refers to any person employed to extract mineral deposits underground
or to work in excavations or workings such as shafts, winzes, tunnels, drifts,
crosscuts, raises, working places whether abandoned or in use beneath the earths
surface for the purpose of searching for and extracting mineral deposits. In the
absence of a retirement plan or other applicable agreement providing for retirement
benefits of underground mine employees in the establishment, an employee may
retire upon reaching the compulsory retirement age of sixty (60) years or upon
optional retirement at the age of fifty (50) years, provided he/she has served for at
least five (5) years as an underground mine employee or in underground mine of
the establishment.
The retirement benefits under RA 7641 and RA 8558 are separate and
distinct from those granted by the Social Security System. Under the law, upon
optional or compulsory retirement, the employee is also entitled to the
proportionate thirteenth-month pay for the calendar year and to the cash equivalent
of accrued leave benefits.
53

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LABOR STANDARDS LAWS

By: Dean Froilan M. Bacungan

The above Labor Standards Laws as amended and modified by the

It is firmly settled that the existence or non-existence of the employer-

Jurisprudence is firmly settled that whenever the existence of an

Where private respondent company selected and engaged the services of

LAW ON HOURS OF WORK

b. An employee need not leave the premises of the workplace in order

3.16. How is the right to a weekly rest day implemented?

or holidays by agreement or practice subsisting upon the effectivity of the Labor

Pursuant to the provisions of the Labor Code, as amended in relation to the

1. For regular holidays as provided for under EO 203 (incorporated in EO

New Year's Day - January 1

Maundy Thursday - Movable Date

Good Friday - Movable Date

Araw ng Kagitingan - April 9

Labor Day - May 1

Independence Day - June 12

National Heroes Day - Last Sunday of August

Bonifacio Day - November 30

Eidul Fitr - Movable Date

Christmas Day - December 25

Rizal Day - December 30

2. the following rules shall apply:

3. For declared special days such as Special Non-Working Day, Special

No pay, unless there is a favorable company policy, practice or

1st 8 hours - plus 30% of the daily rate of 100%

a. Falling on the employee's rest day and if worked

For work performed, an employee is entitled only to his basic rate. No

3.24. Who are not entitled to holiday pay?

This benefit of holiday pay applies to all employees except:

1. Government employees, whether employed by the National Government or any

3. Househelpers and persons in the personal service of another;

4. Managerial employees, if they meet all of the following

a.) Primarily perform work directly related to management policies of their

6. Field personnel and other employees whose time and performance is

3.25 What is the effect of absences on the right to holiday pay?

3.26. Are private school teachers, employees paid by results, seasonal

Where a covered employee is paid by results or output, such as payment on

3.27. How shall a regular holiday be treated if it falls on an employees rest

3.30. Is the service incentive commutable?

LAW ON SERVICE CHARGES

4.2. What does wage mean?

The Secretary of Labor may, to an extent necessary to promote the

Republic Act 6727 rationalized wage determination by establishing the

National Capital Region (NCR) or Metro Manila

1.6. What is the coverage of wage orders ?

1. Househelpers, including family drivers and workers in the personal service of

2. Workers of registered Barangay Micro Business Enterprises (BMBEs) with

DAILY MINIMUM WAGE National Capital Region As of January 2010

4.8 Who are monthly paid and daily paid employees?

4.9 What is the rule on double indemnity?

Any person, corporation, trust, firm, partnership, association or entity which

The employer concerned shall be ordered to pay an amount equivalent to

If the violation is committed by a corporation, trust or firm, partnership,

On August 13, 1986, President Corazon C. Aquino issued Memorandum

An employee who has resigned or whose services were terminated at any

4.11. How is the 13th month pay computed?

6. The right to dispose of wages without any limitation or interference

4.15. To whom shall wages be paid?

4.16. Where shall wages be paid?

5. Re: Deduction to ensure employment; It shall be unlawful to make

LAWS ON WORKING CONDITIONS FOR SPECIAL GROUPS OF