Labor Law NOTES 2003

LABOR LAW REVIEWER
1 SAINT LOUIS UNIVERSITY BAR OPERATIONS
Art. 3. Declaration of basic policyenunciates labor

policy in general
PHILIPPINE LABOR LAW
The State shall
________
Afford protection to labor;
Promote full employment;

SECTION 3, ARTICLE XIII
1987 Philippine Constitution Ensure equal work opportunities regardless of
sex, race or creed;
LABOR Regulate the relations between workers and

employers;
The State shall AFFORD FULL PROTECTION TO
LABOR, local and overseas, organized and unorganized, Assure the rights of workers to: (1) Self-
PROMOTE FULL EMPLOYMENT and EQUALITY OF organization; (2) Collective Bargaining; (3)
EMPLOYMENT OPPORTUNITIES for all. Security of tenure; and, (4) Just and humane
conditions of work.
It shall GUARANTEE the rights for all workers to
SELF-ORGANIZATION, COLLECTIVE BARGAINING and Art 211 focuses on policy in the area of labor-
NEGOTIATIONS, and PEACEFUL CONCERTED management relations.
ACTIVITIES, including the right to strike in accordance with
law. DOCTRINE OF INCORPORATION--embodied
in the declaration in the Constitution that the
They shall be ENTITLED to SECURITY OF Philippines adopts generally accepted principles of
TENURE, HUMANE CONDITIONS OF WORK, and a international law as part of the law of the land.
LIVING WAGE. They shall also PARTICIPATE in POLICY
and DECISION-MAKING PROCESSES affecting their rights Ratified ILO Conventions are considered
and benefits as may be provided by law. Philippines Labor Laws pertaining to 4 KEY
ISSUES:
The State shall PROMOTE the principle of SHARED
RESPONSIBILITY between workers and employers, and the Freedom of association
preferential use of VOLUNTARY MODES IN SETTLING
DISPUTES including CONCILIATION, and shall enforce their Abolition of forced labor
MUTUAL COMPLIANCE therewith to foster INDUSTRIAL
PEACE. Abolition of child labor and
The State shall REGULATE the relations between Non-discrimination in work or employment
workers and employers, recognizing the RIGHT OF LABOR to conditions.
its just share in the fruits of production and the RIGHT OF
ENTERPRISES to reasonable returns on investments, and to Art. 4. Construction in favor of laborAll doubts in the
EXPANSION and GROWTH. implementation and interpretation of the Labor
Code including its IRR, shall be resolved IN
________ FAVOR OF LABOR.
BUT every labor dispute will NOT be

PRELIMINARY TITLE automatically resolved in favor of labor.
CHAPTER I WHEN TO APPLY
GENERAL PROVISIONS
Only when there is doubt
Art. 1. Name of the DecreeLABOR CODE OF THE
WHEN NOT TO APPLY
PHILIPPINES
When the contract is clear
Art. 2. Date of EffectivitySix (6) months after its
promulgation When the law is clear
The Labor Code was promulgated as PD 442 on May When there is no law to interpret
1, 1974 and took effect on November 1, 1974,
EXCEPT portions of Book IV whose effectivity was These laws should be interpreted with a view that
deferred to January 1, 1975 by PD 608. Note: Book they remedial in nature; they are enacted to better the
IV is undergoing revisions as of this time. lot and promote the welfare of the members of the
laboring class.
Prepared by the LABOR LAW SECTION Chief ARVIN ANDAYA Assistant Chief MELISSA DE VILLA Members NANCY BILAOEN, GLENA
DAWAY, IDA JUICO, ROWENA VILLANUEVA, NOEL NERIZON, AILEEN SACQUING, LILYBETH SINDAYEN and CAROL BUNHIAN. All
Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS 2003.
LABOR LAW REVIEWER
EMANCIPATION OF TENANTS
Amended by the Comprehensive Agrarian Reform Law (RA

6657, June 10, 1988)
MANAGEMENT ALSO HAS RIGHTS
Justice is for the deserving, to be dispensed

in the light of the facts and the applicable law or
doctrine. BOOK I
PRE-EMPLOYMENT
MANAGEMENT PREROGATIVES
Except as limited by special laws, an TITLE I

employer is free to regulate, according to his own RECRUITMENT AND PLACEMENT OF WORKERS
discretion and judgment, all aspects of employment
including: CHAPTER I
GENERAL PROVISIONS
HIRING, WORK ASSIGNMENTS, WORKING
METHODS, TIME PLACE AND MANNER OF Art. 12. Statement of objectives
WORK, TOOLS TO BE USED, PROCESSES TO
BE FOLLOWED, SUPERVISION OF WORKERS, Relate to RA 8042 (June 7, 1995) Migrant Workers
WORKING RESULATIONS, TRANSFER OF and Overseas Filipinos Act This law declares as a
EMPLOYEES, WORK SUPERVISION, LAY-OFF policy that the State does not promote overseas
OF WORKERS, AND DISCIPLINE, DISMISSAL employment as a means to sustain economic growth
AND RECALL OF WORKERS. (HW5T2PLSD) and national development. It also redefines ILLEGAL
RECRUIITMENT.
Thus so log as management prerogatives
are exercised in good faith for the advancement of the Art. 13. Definitions
employers interest and not for the purpose of
defeating the rights of employees under special law or WORKERany member of the labor force,
under valid agreements, it shall be upheld. whether employed or unemployed.
MANAGEMENT RIGHTS: (CPST) RECRUITMENT AND PLACEMENTrefers to
any act of canvassing, enlisting, contacting,
Right to conduct business transporting, utilizing, hiring or procuring workers,
and includes referrals, contract services,
Right to prescribe rules promising or advertising for employment, locally
or abroad, whether for profit or not.
Right to select employees
PRIVATE FEE-CHARGING EMPLOYMENT
Right to transfer or discharge employees AGENCYany person or entity engaged in the
recruitment and placement of workers for a fee,
Art. 5. Rules and Regulations which is charge directly or indirectly, from the
workers or employers or both.
The power of the DOLE is rule-making not
law making. Therefore, it cannot make, amend, repeal, LICENSEa document issued by the
or legislate beyond the scope of the Labor Code, or Department of Labor authorizing a person or
contravene its provisions entity to operate a private employment agency.
Rules and regulations cannot contradict or PRIVATE RECRUITMENT ENTITYany

modify the law they intend to implement; otherwise person or association engaged in the recruitment
they may be declared void. and placement of workers, locally or overseas,
without charging, directly or indirectly, any fee
The subordinate character of administrative from the workers or employers.
regulations accords with the maxim that the spring
cannot rise higher than its source. AUTHORITYa document issued by the
Department of labor authorizing a person or
association to engage in recruitment and
Art. 6. Applicability placement activities as a private recruitment
entity.
The Labor Code applies primarily to the private sector
and to GOCCs organized under the General Art. 14. Employment Promotion
Corporation Code.
Creation of local job opportunities, rather
than overseas employment, is the PREFERRED
means to sustain national development.
CHAPTER II
LABOR LAW REVIEWER
The POEA has absorbed the functions of the OEDB,

RA 8759 (The PESO law, approved on which no longer exists
Feb. 4, 2000) institutionalizes the establishment of
public employment service offices in every province,
key cities, and other strategic areas to promote local
employment by gathering and disseminating job
market information and by providing employment
services to clients. POEA REGULATORY FUNCTION
Art. 15. Bureau of Employment Services The POEA shall regulate private sector
participation in the recruitment and placement of
Partly modified and repealed EO 797 workers through its licensing and regulation system.
(May 1, 1982) created the POEA which took over the
overseas employment functions of the BES which POEA ADJUDICATORY FUNCTIONS
accordingly, was renamed Bureau of Local
Employment (BLE). The creation of the POEA All cases which are administrative in character,
repealed paragraph (b) of this article. involving or arising out of violations of rules and
regulations relating to licensing and registration
The Administrative Code of 1987 lists down of recruitment and employment agencies or
the functions of the present BLE. entities; and
Art. 16. Private Recruitment Disciplinary action cases and other special cases
which are administrative in character, involving
Art. 25 allows private sector participation in employers, principals, contracting partners and
the recruitment and placement of workers. Filipino migrant workers.
PD 1167, which allows construction JURISDICTION TRANSFERRED TO THE

contractors, if, authorized by the DOLE and the LABOR ARBITERS OF THE NLRC (Section 10
Construction Industry Authority, to recruit and place RA 8042)
workers of local or overseas employment.
This is with respect to claims arising out of
an employer- employee relationship or by virtue of any
ELEMENTS OF ENGAGING IN law or contract involving Filipino workers for overseas
RECRUITMENT ACTIVITIES deployment including claim for actual, moral,
exemplary and other forms of damages.
The complainant had a distinct impression that
the accused had the power to send complainant
abroad for work; and VENUEmoney claims or claims for
damages should be filed before the Regional
The complainant was convinced to part with his arbitration Branch of the NLRC where the complainant
money in order to be so employed. resides or where the principal office of the
respondent/employer is situated, at the option of the
The following entities are authorized to recruit and complainant.
place workers for local or overseas employment:
COMPROMISE AGREEMENT
Public employment offices Consistent with the policy encouraging amicable
settlement of labor disputes, Sec. 10 of RA 8042,
Private recruitment entities allows resolution by compromise agreement of cases
filed with the NLRC.
Private employment agencies
PREMATURE TERMINATION OF
Shipping or manning agents or representatives of CONTRACTWhere the workers employment
the POEA contract is terminated long before its agreed
termination date and the termination is not shown to
Construction contractors if authorized to operate be based on lawful or valid grounds, the employer will
by DOLE and the Construction Industry Authority be ordered to pay the workers their salaries
corresponding to the unexpired portion of their
Members of the diplomatic corps but hiring done employment contract. (Tierra Intl Construction Corp.
by them have to be processed through the POEA vs. NLRC)
HOWEVER, under RA 8042, if the illegal

Other persons or entities as may be authorized
dismissal took place on or after July 15, 1995, the
by the DOLE Secretary.
illegally dismissed overseas worker shall be entitled to
the full reimbursement of his placement fee with
Art. 17. OBSOLETE
interest at the rate of 12% per annum plus salary for
the unexpired portion of his employment contract or
LABOR LAW REVIEWER
for 3 mos. for every year of the unexpired term, duly approved by the appropriate government
whichever is less. agencies; and
The basis of the award of back wages is the Violation of the laws and sacred practices of the
parties employment contract stipulating the wages host country and unjustified breach of
and benefits. government approved employment contract by a
worker.
The fact that the employee has signed a
satisfaction receipt does not result in waiver; the law
does not consider as valid any agreement to receive
less compensation than what the worker is entitled to
recover. (MR Yard Crew Union vs. PNR)
Art. 18. Ban on direct hiring
DISCIPLINARY ACTION CASES
GENERAL RULE
Rule VII of Book VII of the POEA Rules
provides that complaints for breach of discipline No FOREIGN EMPLOYER may hire a Filipino
against a contract worker shall be filed with the worker for overseas employment.
Adjudication Office or Regional Office of the POEA, as
the case may be. EXCEPTIONS
The POEA may motu propio undertake Direct hiring by

disciplinary action against a worker for breach of
discipline. It shall establish a system of watching and Members of the diplomatic corps;
blacklisting of overseas contract workers.
International organizations; and
Such other employers as may be allowed by
the Dept. of Labor.
GROUNDS FOR DISCIPLINARY ACTION (Under
MWA of 1995) Name Hirees
Commission of a felony punishable by the laws of Name hirees are Individual workers who are able
the Philippines or of the host country; to secure contracts for the overseas employment
on their own efforts and representations without
Drug addiction or possession or trafficking of the assistance or participation or any agency.
prohibited drugs;
Desertion or abandonment; RATIONALE FOR THE PROHIBITION
Drunkenness, especially where the laws of the Filipino workers hired directly by a foreign
host country prohibit intoxicating drinks; employer without government intervention may not be
assured of the best possible terms and condition of
Gambling especially where the laws of the host work. The foreign employer must also be protected as
country prohibit the same; he may chance upon a Filipino worker who does not
possess sufficient knowledge for which he is
Initiating or joining a strike or work stoppage employed.
where the laws of the host country prohibit strike
or similar actions; This article still stands but the Boards it mentions
now refer to the POEA
Creating trouble at the worksite or in the vessel;
Embezzlement of company funds or of money MINIMUM EMPLOYMENT CONDITIONS OF

and properties of a fellow worker entrusted for OVERSEAS EMPLOYMENT
delivery for the kins or relatives in the Philippines;
Theft or Robbery; Guaranteed wages for regular working hours and

overtime pay for services rendered beyond
Prostitution; regular working hours in accordance with the
standards established by the POEA;
Vandalism or destroying company property;
Free transportation from point of hire to site of
employment and return;
Gunrunning or possession of deadly weapons;
Free emergency medical and dental treatment
Unjust refusal to depart for the worksite after all
facilities;
employment and travel documents have been
LABOR LAW REVIEWER
Just causes for termination of the contract or of Doctors, engineers, teachers, nurses, and other
the services of the workers; professionals whose employment contract
provide for lodging facilities: 70% of the basic
Workmens compensation benefits and war salary
hazard protection;
All other professionals without board and lodging:
Repatriation of workers remains and properties 50% of the basic salary
in case of death to the point of hire, or if this is
not possible, the proper disposition thereof; Domestic and other service of workers: 50% 0f
the basic salary
Assistance on remittance of workers salaries,
allowances or allotments to his beneficiaries; and
Free and adequate board and lodging facilities or

compensatory food allowance of prevailing cost Art. 23. Composition of the Boards
of living standards at the jobsite.
Partly obsolete. EO 797 created the POEA to
replace the OEDB and NSB. EO 247 subsequently
Art. 19. Office of Emigrant Affairs reconstructed POEA and redefined its powers and
functions.
BP 79, approved on June 16, 1980, created
the Commission on Filipinos Overseas, which Further changes in the composition of the governing
absorbed the functions of the OEA. boards of POEA and OWWA have been made by RA
8042. It adds to their respective boards 3 members
each who shall come from the:
Art. 20. National Seamen Board
Women sector
RA 8042 transferred to the NLRC the
original and exclusive jurisdiction over claims arising Sea-based sector and
from Employer-Employee relationship or by virtue of
any contract involving workers including seamen for Land-based sectors of workers.
overseas deployment, and including claims for various
kinds of damages. Pars. (c) and (d) of this article still stand being
consistent with EO 247 and RA 8042.
The POEA, however, retains its jurisdiction
over pre-employment cases, which are administrative
in character.
CHAPTER II
Art. 21. Foreign Service role and participation REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES
Sec. 23 of RA 8042 makes the DFA and
DOLE, along with POEA and OWWA, responsible for
the promotion of welfare and protection of rights of Art. 24. Boards to issue rules and collect fees.
migrant workers, and as far as applicable, all overseas
Filipinos. The same section creates the position of Partly Obsolete. The issuance of rules and
LAMWA (Legal Assistant for Migrant Workers Affairs) regulations and the collections of fees mentioned in
to provide and coordinate all legal assistance services this Article remain but NOW PERTAIN TO THE POEA,
to migrant workers and other Filipinos overseas in which replaced the Boards referred to.
distress. Sec. 23, RA 8042 is consistent with Art 21
complementing each other. Art. 25. Private sector participation in the recruitment
and placement of workers.
Art. 22. Mandatory remittance of foreign ex change
earnings QUALIFICATIONS FOR PARTICIAPTION IN THE
OVERSEAS EMPLOYMENT PROGRAM
Book VII; Rule VIII of the POEA RR and EO 857 with
IRR provide the details of remittance requirement. Filipino citizens, partnerships or corporations at
least 57% of the authorized and voting capital
MANDATORY REMITTANCE stock of which is owned and controlled by Filipino
REQUIREMENTS citizens;
Seamen or mariners: 80% of the basic salary Minimum capitalization of 1M in case of single
proprietorship and a minimum paid up capital of
Workers for Filipino Contractors and Construction 1M for corporations;
Companies: 70% of the basic salary
LABOR LAW REVIEWER
Those not otherwise disqualified by law or Change of ownership or relationship of

guidelines to engage in the recruitment and single proprietorship licensed to engage in overseas
placement of workers for overseas employment. employment shall cause the automatic revocation of
the license.
WHO may participate in the private sector? Art. 30. Registration fees
Private employment agencies Art. 31. Bonds
Private recruitment entities Cash bonds filed by applicants for license or

Shipping or manning agents or representatives authority are not subject to garnishment by a judgment
creditor of the agency
Such other persons or entities as may be
authorized by the Secretary of Labor POEA possesses the power to enforce
liability under cash or surety bonds.
Art.26. Travel agencies are prohibited from

recruiting
Art. 32. Fees to be paid by workers
PERSONS DISQUALIFIED
Book II, Rule V of the POEA Rules
Travel agencies and sales agencies of airline authorizes private employment and documentation
companies; fees to hired workers, but the fees may be collected
only after the worker has signed the employment
contract. Payment of processing fee is also required
Officers or members of the board of any
under Book III, Rule II.
corporation or members in a partnership engaged
in the business of a travel agency;
Collection of premium for performance bond,
if bond is needed, is authorized under Book VIII, Rule
Corporations and partnerships, when any of its
VII of the same POEA Rules. But requiring cash
officers, members of the board or partners, is
performance bond is strictly prohibited.
also an officer of a corporation engaged in the
business of a travel agency.
Art. 33. Reports on employment status
Persons, partnerships, or corporations which Art. 34. Prohibited practices
have derogatory records;
It shall be unlawful for any individual, entity,
Persons employed in the Dept. of Labor or in licensee or holder of authority:
other government agencies directly involved in
overseas employment program and their relatives To charge or accept, directly or indirectly, any
within the 4th degree of consanguinity or affinity; amount greater than that specified in the
or schedule of allowable fees prescribed by the Sec.
Of Labor, or to make a worker pay any amount
Those whose license has been previously greater than that actually received by him as loan
cancelled or revoked. or advance;
To furnish or publish any false notice or

Art. 27. Citizenship requirement information or document in relation to recruitment
or employment;
Art. 28. Capitalization
To give any false notices, testimony, information
or document or commit any act of
misrepresentation for the purpose of securing a
Art. 29. Non-transferability of license / authority
license or authority under this Code;
No license or authority shall be used directly
To induce or to attempt to induce a worker
or indirectly by any person other than the one in
already employed to quit his employment in order
whose favor it was issued or at any other place other
to offer him to another unless the transfer is
than that stated in the license or authority, nor may
designed to liberate the worker from oppressive
such license or authority be transferred, conveyed or
terms and conditions of employment;
assigned to any other person or entity.
Licensees or holders of authority or their To influence or attempt to influence any person or

duly authorized representatives may, as a rule, entity not to employ any worker who has not
undertake recruitment and placement activities ONLY applied for employment through his agency;
at their authorized official addresses.
To engage in the recruitment of placement of
workers in jobs harmful to public health or
LABOR LAW REVIEWER
morality or to the dignity of the Republic of the Incurring an accumulated 3 counts of suspension
Philippines; by an agency based on final and executory
orders within the validity period of its license.
To obstruct ort attempt to obstruct inspection by
the Sec. of Labor or his duly authorized GROUNDS LICENSE SUSPENSION
representatives;
Charging a fee before the worker is employed or
To fail to file reports on the status of employment, in excess of the authorized amount;
placement, vacancies, remittance of foreign
exchange earnings, separation from jobs, Substituting or altering employment contracts;
departures and such other matters or information
as may be required by the Sec. of Labor; Doing recruitment in places outside its authorized
area;
To substitute or alter employment contracts
approved by the Dept. of Labor from the time of Deploying workers without processing through
signing thereof by the parties up to and including the POEA; and
the periods of expiration of the same without the
approval of the Sec. of Labor; Publishing job announcements without the
POEAs prior approval.
To become an officer or member of the Board of
any corporation engaged in travel agency or to The OEDB and NSB have been
be engaged directly or indirectly in the replaced by the POEA.
management of a travel agency; and
NON-LICENSEE OR NON-HOLDER OF
To withhold or deny travel documents from AUTHORITYis any person, corporation or entity
applicant workers before departure for monetary which has not been issued a valid license or authority
or financial considerations other than those to engage in recruitment and placement by the Sec.
authorized under this Code and its implementing Of Labor, or whose license or authority has been
rules and regulations. suspended, revoked or previously cancelled by the
POEA and the Secretary.
Modified. Any of these prohibited practices,
committed by any person, whether a licensee or non-
licensee or holder or non-holder of authority,
constitutes illegal recruitment, as re-defined in Sec. 6,
RA 8042. Sec. 15, RA 8042 imposes on the local CHAPTER III
agency and/or the principal the responsibility for MISCELLANEOUS PROVISIONS
repatriating the worker (or his remains) unless the
employment termination is due solely to the workers Art. 36. Regulatory power
fault.
The regulatory power mentioned in this and other
Art. 35. Suspension and / or Cancellation of Articles will CEASE unless the presently governing
license or authority law is changed.
The Sec. of Labor shall have the power to According to Sec. 30, RA 8042, which was approved
suspend or cancel any license or authority to recruit on June 7, 1995, the DOLE shall phase out the
employees for overseas employment for violations of regulatory functions of the POEA within 5 YEARS from
rules and regulations issued by the DOLE and by the the effectivity of said law, pursuant to the objectives of
POEA, or for violation of the provisions of this and deregulation.
other applicable laws, General Orders and Letters of
Instructions. Art. 37. Visiting Power
Art. 38. Illegal recruitment

GROUNDS FOR LICENSE REVOCATION
ILLEGAL RECRUITMENTany act of
Violation/s of the conditions of a license; canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers and includes
Engaging in act/s of misrepresentation for the referring contract services, promising or advertising for
purpose of securing a license or renewal thereof; employment abroad, whether for profit or not, when
undertaken by a non-licensee or non-holder of
Engaging in the recruitment or placement of authority.
workers to jobs harmful to the public health or
morality or to the dignity of the Republic of the Modified. Partly invalidated. This article
Philippines; and is deemed only to apply to LOCAL EMPLOYMENT
because RA 8042 now governs illegal recruitment for
overseas employment. Par. (c) of this article is
rendered ineffectual by the SC in Salazar vs.
LABOR LAW REVIEWER
Achacoso (March 14, 1990) that this provision is Sec. 2-A of the Anti-Dummy Law
unconstitutional, therefore, null and void. RA 8042 prohibits the employment of aliens in entities that own
provides that commission of any of the prohibited acts or control a right, franchise, privilege, property or
under Art. 34 by any person, whether a non-licensee, business whose exercise or enjoyment is reserved by
non-holder, licensee or holder of authority constitutes law only to Filipinos or to corporations or associations
illegal recruitment. whose capital should be at least 60% Filipino-owned.
QUALIFYING CIRCUMSTANCES THAT WOULD EXCEPTIONS TO THE PROHIBITION

MAKE ILLEGEL RECRUITMENT AS AN
OFFENSE INVOLVING ECONOMIC SABOTAGE Where the Sec. of Justice specifically authorizes
the employment of technical personnel; or
Illegal recruitment is deemed committed by a
syndicate if carried out by a group of 3 or more Where the aliens are elected members of the
persons conspiring and / or confederating with board of directors or governing body of
one another in carrying out any unlawful or illegal corporations or association in proportion to their
transaction, enterprise or scheme. allowable participation in the capital of such
entities.
Illegal recruitment is deemed committed in large
scale if committed against 3 or more persons A non-resident alien worker and his
individually or as a group. employer shall bind themselves to train at least 2
Filipino understudies.
Art. 39. Penalties
Details about issuance of alien employment
Modified. The penalties under this Article apply only permit are given in a set of revised guidelines dated
to local employment. Sec. 7, RA 8042 governs January 4, 1988, issued by DOLE. The BLE has also
overseas employment. Sec. 8, RA 8042 prohibits issued a memorandum circular in 1990 under which a
officials or employees of DOLE, POEA, OWWA and number of aliens to be hired depend on the amount of
other implementing agencies, including their relatives, investment in the country.
from engaging in recruitment of migrant workers. The
prescriptive periods for ILLEGAL RECRUITMENT Also pertinent is RA 7916, effective February
under RA 8042 is 5 YEARS; 20 YEARS if it involves 24, 1995 providing for the creation of special
economic sabotage. economic zones and RA 7918, approved on February
24, 199, allowing employment of foreign nationals as
one of the incentives to investments.
TITLE II
EMPLOYMENT OF NON-RESIDENT ALIENS Art. 41. Prohibition against transfer of employment
Art. 42. Submission of a list

Art. 40. Employment permit of non-resident aliens
Any alien seeking admission to the

Philippines for employment purposes and any
domestic or foreign employer who desires to engage BOOK II
an alien for employment in the Philippines shall obtain HUMAN RESOURCES DEVELOPMENT
an employment permit from the Dept. of labor.
TITLE I
The employment permit may be issued to a NATIONAL MANPOWER DEVELOPMENT PROGRAM
non-resident alien or to the applicant employer after a
determination of the non-availability of a person in the CHAPTER I
Philippines who is competent, able and willing at the NATIONAL POLICIES ND ADMINISTRATIVE
time of application to perform the services for which MACHINERY FOR THEIR IMPLEMENTATION
the alien is desired.
Art. 43. Statement of objectives
For enterprises registered in preferred areas
of investments, said employment permit may be While Book I promotes local employment
issued upon recommendation of the government and regulates overseas employment, Book II develops
agency in charged with the supervision of said the employability and productivity of the work force.
enterprise. The objective still is high employment rate, hence,
socioeconomic growth.
Foreigners may not be employed in certain
nationalized business. RA 7796, approved on August 25, 1994,
created the TESDA (Technical Education and Skills
PROHIBITION AGAINST EMPLOYMENT OF Development Authority), which absorbed the NMYC
ALIENS and 3 other offices. TESDA integrates all government
programs aimed at developing middle-level manpower
LABOR LAW REVIEWER
in support of Philippine development goals and TESDA is also expected to strengthen the
priorities. network of training centers, including public and
private Dual System educational institutions.
Laws and regulations inconsistent with the
TESDA Law are deemed REPEALED or accordingly Art. 51. Employment service training functions
modified. Art. 43 is NOT inconsistent with RA 7796.
Modified. The Council now refers to
Art. 44. Definitions TESDA. The Bureau is the BLE (Bureau of local
Employment) created under EO 797, as amended by
Not inconsistent with RA 7796 EO 126 (January 30, 1987)
MANPOWERportion of the nations Art. 52. Incentive scheme

population, which has actual or potential
capability to contribute directly to the production OBSOLETE. Sec. 27, TESDA Law now governs the
of goods and services. formulation and administration of incentive schemes.
ENTREPRENEURSHIPtraining for self- Art. 53. Council Secretariat

employment or assisting individual or small
industries OBSOLETE. Sec. 10, TESDA Law supersedes this
article.
Art. 54. Regional manpower development offices
OBSOLETE. See instead Sec. 14, TESDA Law.

Art. 45. National Manpower and Youth Council,
Composition Art. 55. Consultants and technical assistance,
publication and research
OBSOLETE See instead Secs. 5 and 7 of
the TESDA Law OBSOLETE. See also Sec. 17, TESDA Law
Art. 46. National Manpower Plan Art. 56. Rules and regulations
OBSOLETE. See instead Sec. 10 of the OBSOLETE. See instead Sec. 36, TESDA Law
TESDA Law
Art. 47. National Manpower Skills Center
OBSOLETE. See instead Secs. 19 and 20 TITLE II

of the TESDA Law TRAINING EMPLOYMENT OF SPECIAL
WORKERS
Art. 48. Establishment and formulation of skills standards CHAPTER I

APPRENTICES
OBSOLETE. See instead Sec. 22 of the
TESDA Law
Art. 57. Statement of Objectives
Art. 49. Administration of training programs Modified. The TESDA Law transferred the
authority over apprenticeship programs from the BLE
SUPERSEDED by Sec. 23 of the TESDA of DOLE to TESDA. This article still stands because it
Law does not conflict with RA 7796.
Art. 58. Definition of Terms

Art. 50. Industry boards
Modified. See Sec. 4, TESDA law.
Sec. 26, TESDA Law provides for
institutional arrangements between TESDA and APPRENTICESHIPpractical training on the
industry boards. EXCEPT that the Council now refers job supplemented by related theoretical
to TESDA. instruction.
Skills standards need to be defined (how APPRENTICEis a worker who is covered by

skilled is skilled) to define in turn the competency and written apprenticeship agreement with an
efficiency of the work force to meet particularly the individual employer or any of the entities
imperatives of global competition. recognized under this Chapter.
APPRENTICEABLE OCCUPATIONany
trade, form of employment or occupation which
LABOR LAW REVIEWER
requires more than 3 months of practical training

on the job supplemented by related theoretical Full name and address of the contracting parties;
instruction.
Date of birth of the apprentices;
APPRENTICESHIP AGREEMENTan
employment contract wherein the employer binds Name of trade, occupation or job in which the
himself to train the apprentice and the apprentice apprentice will be trained and the dates on which
in turn accepts the terms of training. such training will begin and will approximately
end;
ON-THE-JOB TRAININGthe practical work
experience through actual participation in Approximate number of hours of on-the-job
productive activities given to or acquired by the training with the compulsory theoretical
apprentice. instructions which the apprentice shall undergo
during his training;
HIGHLY TECHNICAL INDUSTRIESa trade,
business, enterprise, industry or other activity, Schedule of the work processes of the
which is engaged in the application of advanced trade/occupation in which the apprentice shall be
technology. trained and the approximate time to be spent on
the job in each process;
Art. 59. Qualifications of apprentice
Graduated scale of wages to be paid the
At least 14 years of age IRR fixes it at 1 apprentice.
Possess vocational aptitude and capacity for
appropriate tests The SC has interpreted this article to mean
that DOLE should first approve an apprenticeship
Possess the ability to comprehend and follow oral program before an apprentice may be hired;
and written instructions otherwise, the supposed apprentice will be considered
a regular employee.
Relate with the law against child abuse (RA
7610, as amended by RA 7658, approved on Inconsistent. This article says the
November 9, 1993. It prohibits the employment of apprenticeship shall not exceed 6 months. This
children below 15 years of age, subject to some strict does not harmonize with Art. 281, which contemplates
exceptions. a stipulation for a longer period.
Art. 60. Employment of apprentices Art. 62. Signing of apprenticeship agreement
Only employers in the highly technical Every apprenticeship agreement shall be

industries may employ apprentices and only in signed by the employer or his agent or by an
apprenticeable occupations as determined by the Sec. authorized representative of any of the recognized
of Labor organizations, associations or groups and by the
apprentice.
Modified. Apprenticeable occupation is
defined in the TESDA Law as one, which is officially An apprenticeship agreement with a minor
endorsed by a tripartite body and approved for shall be signed in his behalf by his parent or guardian
apprenticeship by TESDA. or, if the latter is not available, by any authorized
representative of the Dept. of Labor, and the same
REQUISITES FOR A VALID shall be binding during its lifetime.
APPRENTICESHIP
An apprenticeship agreement entered into
Qualifications of the apprentice by the parties should be ratified by an appropriate
apprenticeship committee.
Apprenticeship agreement duly executed and
signed providing for compensation which must
not be less than 75% of the minimum wage, Art. 63. Venue of apprenticeship programs
except on-the-job training
The law provides the employer 3 venues of
Apprenticeship program duly approved by the apprenticeship training programs. It can be conducted
DOLE in the following places:
Period of apprenticeship shall not exceed 6 mos. Sponsoring firms or employers premises;
Training centers of the DOLE; or

Art. 61. Contents of apprenticeship agreement
Public training institutions or a combination of
Every apprenticeship agreement contains both.
the following:
LABOR LAW REVIEWER
Art. 64. Sponsoring of apprenticeship program Art. 70. Voluntary organization of apprenticeship
programs; Exceptions
Any of the apprenticeship schemes
recognized herein may be undertaken or sponsored Primarily, an apprenticeship is a voluntary
by a single employer or firm or by a group or undertaking. However, an employer could be
association thereof, or by civic organization. Actual compelled to train apprentices in the following
training of apprentices may be undertaken: instances:
In the plant, shop premises of the employer When there is a critical shortage of trained
or firm concerned if the apprenticeship program is manpower in certain trades, occupations, jobs or
organized by an individual employer or firm; employment levels where national security or
particular requirements of economic development
In the premises of one of several firms so demand, the Sec. of labor may recommend to
designated for the purpose by the organizer of the the president of the Philippines the compulsory
program if such organizer is an association of training of apprentices; and,
employers, civic group or the like; and
In a Department of Labor Training Center or other Where services of foreign technicians are utilized
public training institutions with which TESDA has by private companies in apprenticeable trades.
made appropriate arrangements.
Art. 71. Deductibility of training costs

Art. 65. Investigation of violation of apprenticeship
agreement The purpose of the law is to provide an
incentive in the form of additional tax deduction to
Upon complaint of any interested person or persons or enterprises undertaking apprenticeship
upon its own initiative, the appropriate agency of the programs subject to the following conditions:
Department of Labor or its authorized representative
shall investigate any violation of an apprenticeship The apprenticeship program undertaken by the
agreement pursuant to such rules and regulations as employer is recognized by the DOLE;
may be prescribed by the Sec. Of Labor
The apprentices should be paid the minimum
wage;
Art. 66. Appeal to the Secretary of Labor
The deduction should not exceed 10% of the total
The decision of the authorized agency of the direct labor wage expended by the employer
Department of Labor may be appealed by any during the taxable year.
aggrieved person to the Sec. of Labor within 5 days
from receipt of the decision. The decision of the Sec.
of Labor shall be final and executory. Art. 72. Apprentices without compensation
The Sec. of Labor may authorize the hiring

Art. 67. Exhaustion of administrative remedies of apprentices without compensation whose training
on the job is required by the school curriculum as:
No person shall institute any action for the
enforcement of any apprenticeship agreement or A pre-requisite for graduation; or
damages for breach of any such agreement, unless
he has exhausted all available administrative
A requirement for taking a government board
remedies.
examination
Required by the training program curriculum

Art. 68. Aptitude testing of applicants
Under this Article, the student is not
An employer who has a recognized
considered an employee. BUT if he causes injury or
apprenticeship program shall provide aptitude tests to
damage to a 3rd person, the school may be held liable
apprenticeship-applicants. However, if the employer
under the Civil Code. (Filamer Christian Institute vs.
does not have adequate facilities, the Dept. of Labor
IAC, August 17, 1992)
may provide the service free of charge.
Related to, but not the same as the above
Art. 69. Responsibility for theoretical instruction
scheme is RA 7323, which promotes the employment
of students during summer or Christmas vacations.
Supplementary theoretical instructions to
Their wage should meet the legal rate but 40% thereof
apprentices in cases where the program is undertaken
is payable through education voucher.
in the plant may be done by the employer. If the latter
is not prepared to assume the responsibility, the same
may be delegated to an appropriate government
agency.
LABOR LAW REVIEWER
CHAPTER II
LEARNERS Hiring of persons as trainees
in semi-skilled and other
industrial occupations which
Art. 73. Learners, defined Practical training on the job are non-apprenticeable and
supplemented by related which may be learned thru
LEARNERS are persons hired as trainees theoretical instructions. practical training on the job
in semi-skilled and other industrial occupations which in a relatively short period of
are non-apprenticeable and which may be learned time.
through practical training on the job in a relatively
short period of time, which shall not exceed 3 months.
Not less than 3 months practical
Under the TESDA Law (Sec. 4[2]), Practical training on the job
training on the job but not more
learnership programs need approval by TESDA. not to exceed 3 months.
than 6 months.
Art. 74. When learners may be hired With a commitment to

employ the learner as a
Learners may be employed when no No commitment to hire regular employee if he
experienced workers are available, the employment of desires upon completion of
learners is necessary to prevent curtailment of learnership.
employment opportunities, and the employment does
not create unfair competition in terms of labor costs or
impair or lower marking standards. Learner is considered a
In case of pretermination of the regular employee if the
A minor below 15 years of age shall not be apprenticeship agreement, the pretermination of contract
eligible for employment as a learner. Those below 18 worker is not considered as a occurs after 2 months of
years of age may only be employed in non-hazardous regular employee. training and the dismissal is
occupations. without fault of the learner.
Art. 75. Learnership agreement Highly technical industries and Semi-skilled/ industrial
only in industrial occupation. occupations.
A learnership agreement refers to the
employment and training contract entered into
between the employer and the learner. It contains the
following:
The names and addresses of the employer and CHAPTER III

the learner; HANDICAPPED WORKERS
The occupation to be learned and the duration for Art. 78. Definition
the training period which shall not exceed 3
months; HANDICAPPED WORKERSthose
whose earning capacity are impaired by age or
The wage of the learner which shall be at least physical or mental deficiency or injury. Supplemented
75% of the applicable minimum wage; and or contrasted to the definition of DISABLED
PERSONS under Sec. 4(a) of RA 7277 or the Magna
A commitment to employ the learner if he so Carta Law for Disabled Persons.
desires, as a regular employee upon completion
of training. Art. 79. When employable
Art. 76. Learners in piecework
Handicapped workers may be employed
Learners employed in piece or incentive-rate when their employment is necessary to prevent
jobs during the training period shall be paid in full for curtailment of employment opportunities and when it
the work done. does not create unfair competition in labor costs or
impair or lower working standards.
Art. 77. Penalty Clause
Art. 80. Employment agreement
Any violation of this Chapter or its
implementing rules and regulations shall be subject to The contract of employment between an
the general penalty clause provided for in this Code. employer and a handicapped worker is called
Employment Agreement which should be submitted
by the employer to TESDA. It contains the following:
APPRENTICESHIP LEARNERSHIP
LABOR LAW REVIEWER
The names and addresses of the employer and Applies to employees in ALL establishments
the handicapped worker; and undertaking, whether for profit or not.
The rate of pay of the handicapped worker which EXCEPT: M GF DF

shall not be less then 75% of the legal minimum
wage; MANAGERIAL EMPLOYEESthose whose
primary duty consists of the management of the
The nature of work to be performed by the establishment in which they are employed or of a
handicapped worker; department or subdivision thereof and to other
members of the managerial staff. Note: This definition
The duration of employment. applies only to the provisions of Book 3 of the Labor
code.
Art. 81. Eligibility for apprenticeship
GOVERNMENT EMPLOYEESof the national
Handicapped workers may be hired as government or any of its political subdivisions (as
apprentices or learners if their handicap is not such as excluded by the Civil Service Law)
to effectively impede the performance of job
operations in the particular occupations for which they FIELD PERSONNELnonagricultural workers who
are hired. The Magna Carta strictly prohibits regularly perform their duties away from the office or
discrimination against a qualified disabled person, place of business of the employer, and whose actual
even as the law gives incentives to employers of work hours in the field cannot be determined with
disabled persons. Even a handicapped person should reasonable certainty.
be considered a REGULAR EMPLOYEE if the factors
that make for a regular employment are present, DOMESTIC SERVANTS and PERSONS in the
especially if his appointment was repeatedly renewed. personal service of another
(Bernardo vs. NLRC, July 12, 1999 GR No. 122917)
MEMBERS OF THE FAMILY of the employer if they
are dependent on the employer for support.
BOOK III
CONDITIONS OF EMPLOYMENT PRINCIPLES IN DETERMINING HOURS
WORKED
TITLE I
WORKING CONDITIONS AND REST PERIODS All hours worked which the employee is required
to give to his employer, regardless of whether or
CHAPTER I not such hours are spent in productive labor or
HOURS OF WORK involve physical or mental exertion;
Normal Hours of Work not to exceed 8 An employee need not leave the premises of the
HOURS = regular wage per day workplace in order that his rest period shall not
be counted, it being enough that he stops
Health Personnel in cities and working, may rest completely and may leave his
municipalities with population of at least 1 M or in workplace to go elsewhere whether within or
hospitals and clinics with abed capacity of at least 100 outside the premises of his workplace;
shall hold regular office hours for 8 HOURS A DAY
FOR 5 DAYS A WEEK, or a total of 40 HOURS a If the work performed was necessary, or it
week, exclusive of time for meals benefited the employer, or the employee could
not abandon his work at the end of his normal
EXCEPT where the exigencies of the working hours because he had no replacement,
service require that such personnel work for 6 days or all the time spent for such work shall be
48 hours, in which case they shall be ENTITLED to considered as hours worked if the work is with
an additional compensation of AT LEAST 30% OF the knowledge of his employer or immediate
THEIR REGULAR WAGE for work on the 6th day. supervisor.
HEALTH WORKERSinclude resident The time during which an employee is inactive by

physicians, nurses, nutritionists, dieticians, reason of the interruptions in his work beyond his
pharmacists, social workers, laboratory technicians, control shall be considered working time either if
psychologists, midwives, attendants and all other the imminence of the resumption of the work
hospitals or clinic personnel. requires the employees presence at the place of
work if the interval is too be utilized effectively
EXCESS CONSIDERED OVERTIME = and gainfully in the employees own interest.
overtime pay + premium pay
COMPUTATION OF HOURS WORK
APPLICATION OF THE RULE
Hours of work shall INCLUDE:
LABOR LAW REVIEWER
All time during which an employee is required to The value of benefits is equal to the
be on duty or be at a prescribed work place; and, compensation due them for the shortened meal
period;
All time during which an employee is suffered or
permitted to work. Overtime pay will become due and demandable
after the new time schedule; and
No need to be doing actual work; only required to
be on duty regardless of whether or not such The arrangement is of temporary duration.
hours are spent in productive labor or involve
physical or mental exertion.
WORKING WHILE SLEEPINGsleeping
WAITING TIMEthis is compensable if may be considered working time if it is subject to
waiting is an integral part of the work or required or serious interruption or takes place under conditions
engaged by the employer to wait. substantially less desirable than would be likely to
exist at the employees home.
SUBJECT TO CALLthis is compensable
if required to remain on call in employers premises or TRAINING PROGRAMS,
close thereto so that he cannot use the time effectively LECTURES, MEETINGS
and gainfully for his own purpose.
NOT compensable if:
BUT NOT COMPENSABLE when
employee is kept within reach through mobile Attendance is OUTSIDE of the employees
telephone or other contact device such as pagers, regular working hours;
notwithstanding that they must remain within a certain
geographical area. Attendance is voluntary; and
MEAL PERIODS Employee does not perform any productive work

during attendance.
Should not be less then 60 minutes, and is time-
off/ non-compensable
Under specified cases, may be less than 60 BRIEF REST PERIODthis is compensable if
minutes, but should not be less than 20 minutes intervals are too brief to be used effectively and
and must be with full pay gainfully in the interest of the employee.
If less than 20 minutes, it becomes only a rest NECESSARY WORK

period and is thus considered as work time.
Compensable if
Note: the employee must be completely
relieved form duty. Otherwise, it is compensable as Necessary;
hours worked.
Benefited the employer, or
Mealtime is not compensable except in
cases where the lunch period or mealtime is Employee cannot abandon work because he had
predominantly spent for the employers benefit or no replacement provided with knowledge of
where it is less than 60 minutes. employer or supervisor.
Employees may request that their meal TRAVEL TIME: WHEN COMPENSABLE
period be shortened so that they can leave work
earlier that the previously established schedule. Travel from home to work normal travel from
home to work which is not work time and is not
REQUISITES compensable; but where the worker is made to
work on an emergency call and travel is
The employees voluntarily agree in writing to a necessary in proceeding to the workplace, the
shortened meal period and are wiling to waive time spent on travel is compensable;
the overtime pay for such shortened meal period;
Travel that is all in a days work the time
There will be no diminution whatsoever in the spent by an employee in travel as part of his
salary and other fringe benefits of the employees principal activity, such as travel from jobsite to
existing before the effectivity of the shortened jobsite during the workday must be counted as
meal period; hours worked;
The work of the employees does not involve Travel away from home travel that keeps an
strenuous physical exertion and they are employee away from home overnight; considered
provided with adequate coffee breaks;
LABOR LAW REVIEWER
as work time when it cuts across an employees EMERGENCY when it is necessary to prevent
workday. loss of life or property or in case of imminent
danger to public safety due to an actual or
BROWN-OUT / WORK INTERRUPTIONS pending emergency in the locality caused by
serious accidents, fire, flood, typhoon,
Compensable if earthquake, epidemic or other disaster or
calamity
Not exceeding 3 hours;
URGENT when there is urgent work to be
Employee cannot leave workplace and can not performed on machines, installations, or
make use of his time for his own purpose. equipment, in order to avoid serious or damage
to the employer or some other cause of similar
GRIEVANCE MEETINGtime spent in nature
adjusting grievance between employer and employees
during the time the employees are required by the LOSS PREVENTION when the work is
employer to be on the premises, is hours worked. necessary to prevent loss or damage to
perishable goods
SEMESTRAL BREAKRegular Full-time
teachers are entitled to salary and emergency cost of PREVENT PREJUDICE when the completion
living allowance during semestral breaks. or continuation of the work started before the 8-
hour period is necessary to prevent serious
OVERTIME PAY additional obstruction or prejudice to the business or
compensation for hour work performed beyond 8 operations of the employer; and
hours within the workers 24-hour workday.
WEATHER where OT is necessary to avail of
30% of 130% of regular wage if done on a favorable weather or environmental conditions
special holiday or rest day; where performance or quality of work is
dependent thereon.
25% of regular wage if done on a regular
workday;
30% of 150% of regular wage if done on a

special holiday and rest day;
30% of 200% of regular wage if done on a

regular holiday; EMPLOYEES NOT ENTITLED TO
OVERTIME
Consent of both employer and employee
needed for rendition of overtime work. KEYWORD: GF DM FR
Express instruction from the employer to the GOVERNMENT employees in the Civil Service
employee to render overtime work is not required for
the employee to be entitled to overtime pay; it is Members of the FAMILY of the employer if they
sufficient that the employee is permitted or suffered to are dependent on the said employer for support
work.
DOMESTIC servants and persons in the
As a rule, overtime pay cannot be waived, personal service of another
as it is intended to benefit laborers and employees.
But when the waiver is made in consideration of MANAGERIAL employees
benefits and privileges which may even exceed the
overtime pay, the waiver may be permitted. FIELD personnel; and
Note: The receipt of overtime pay will not Workers paid by RESULTS
preclude the payment of night shift differential.
COMPULSORY OVERTIME COMPRESSED WORKWEEK

Instances When Employer May Compel Allowable under the following conditions:
Employee To Render OT:
It is voluntary on the part of the worker;
KEY WORD: W2E ULP
There will be no diminution of the weekly or
WARwhen our country is at war or when any monthly take-home pay and fringe benefits f the
other national or local emergency has been employees;
declared by Congress or the President
LABOR LAW REVIEWER
The value of the benefits that will accrue to the

employees under the proposed schedule is more
than or at least commensurate with the one-hour CHAPTER II
overtime pay that is due them during weekdays WEEKLY REST PERIODS
based on the employees quantification;
The one-hour overtime pay will become due and It is the duty of every employer, whether
payable if they are made or permitted to work on operating for profit or not, to provide each of his
a day not scheduled for work on the compressed employees a rest period of not less than 24
workweek; consecutive hours after every 6 consecutive normal
work days.
The work does not involve strenuous physical
exertion and employees must have adequate rest The employer has the discretion on what will
periods; and be the employees rest day, BUT he muster respect
the latters preference based on religious grounds.
The arrangement is of temporary duration.
WORK ON EMPLOYEES REST DAY
NOTE:
GENERAL RULE: The Employee can
Art. 88, LCUndertime NOT offset by NOT be compelled to render work on his rest day.
overtime.
EXCEPT: UCA E LAW
Art. 90, LCRegular wage includes cash
wage only as far as computation of OT pay. EMERGENCY In case of actual or impending
emergency caused by serious accidents, fire,
NIGHTSHIFT DIFFERENTIAL (NSD) flood, typhoon, earthquake, epidemic or other
disaster or calamity, to prevent loss of life or
Not less than 10% of regular4 wage for each property, or in case of force majeure or imminent
hour worked between 10 PM and 6 AM the following danger to public safety;
day, whether or not a such period is part an a of the
workers regular shift. URGENT When there is urgent work to be
performed on machines, installations, or
If work done between 10 PM and ^ AM is equipment, to avoid serious loss or damage to
overtime work, then the 10% NSD should be base on the employer;
the overtime rate.
ABNORMAL PRESSURE In the event of
NOT WAIVABLE abnormal pressure of work due to special
circumstances, where employer cannot ordinarily
EMPLOYEES NOT ENTITLED TO NSD be expected to resort to other measures;
KEYWORD: GF DM FR LOSS PREVENTION To prevent loss or

damage to perishable goods;
GOVERNMENT employees in the Civil Service
CREW MEMBERS OF A VESSEL Where
Members of the FAMILY of the employer if they the nature of the work is such that the employees
are dependent on the said employer for support have to work continuously for 7 days in a week or
more, as in the case of crew members of a
DOMESTIC servants and persons in the vessel to complete a voyage and in other similar
personal service of another cases;
MANAGERIAL employees WEATHER Where work is necessary to avail

of favorable weather or environmental conditions
FIELD personnel; and where performance or quality of work is
dependent thereon; and
Those of RETAIL and SERVICE establishments
regularly employing NOT more than 5 workers. ANALOGOUS or similar circumstances to the
foregoing as determined by the Labor secretary.
RETAIL ESTABLISHMENTone open to
the general consuming public for the sale of goods
that are commonly bought by end users for personal Rest Days (RD) are considered unpaid off-
or household use. days. There should be additional compensation for
work on rest day
SERVICE ESTABLISHMENTone
engaged predominantly in the sale of services to Regular work on RD = 30% of regular wage
individuals for their own household use.
LABOR LAW REVIEWER
Work on RD falling on national special day = 50%

of regular wage Worked = regular wage plus 30% premium pay
Work on RD falling on regular holiday = 30% of Not worked = no compensation/ no premium

his regular holiday pay based on his regular
wage rate. Regular Holidays are PAID, even if unworked.
If WORKED, employee is entitled to regular

wage + 100% of regular wage
CHAPTER III If WORKED and it falls on employees REST

HOLIDAYS, SERVICE INCENTIVE LEAVES AND DAY, he is entitled to regular holiday pay
SERVICE CHARGES (200%) + 30% thereof
GENERAL RULE: monthly paid employees are

Day before holiday, paid holiday pay EVEN if unworked.
Worked Unworked
employee is: EXCEPTION: when paid for all days of the
month whether worked or unworked.
On leave with pay 200% 100%
EFFECT OF ABSENCES
On leave without pay 200% No pay ON HOLIDAY PAY
HOLIDAY PAYa days pay given by law Pay in case of 2 holidays in the same day (Araw
to an employee (even if he does not work) on a ng Kagitingan and Good Friday, April 9): 200%
regular holiday. It is limited to the 10 regular holidays even if unworked for daily paid;
listed by law.
100% or none for those who are monthly paid if
NOTE: the employee should not have been worked or unworked, respectively.
absent without pay on the working day preceding the
regular holiday REGULAR
SPECIAL HOLIDAY
HOLIDAY
PREMIUM PAYadditional compensation Compensable even if
for work performed on a scheduled rest day or holiday. unworked subject to Not compensable if unworked
certain conditions
KINDS OF HOLIDAYS Limited to the 10 Not exclusive since a law or an
enumerated by the Labor ordinance may provide for other
Regular Holidays Code holidays
New Years Day January 1 Rate is twice the regular Rate is 130% of the regular
work rate wage if worked
Maundy Thursday movable date SERVICE INCENTIVE LEAVE (SIL)
Good Friday movable date An employee who has rendered at least 1

year of service shall be entitled to a yearly service
Araw ng Kagitingan April 9 incentive leave of 5 DAYS with pay.
Labor Day May 1 Benefit applies to all EXCEPT:
Independence Day June 12 GOVERNMENT employees in the civil service
National Heroes Day last Sunday of August DOMESTIC SERVANT or persons in the
personal service of another
Bonifacio Day November 30
MANAGERIAL EMPLOYEES
Christmas Day December 25
FIELD PERSONNEL
Rizal Day December 30 (EO No. 203)
Those already enjoying such benefit
Special National Holidays
Those enjoying vacation leaves with pay of at
All Saints Day November 1 least 5 days and
Last day of the year December 31 (LOI 814, as Those employed in firms regularly employing less
amended by LOI 1087) than 10 employees
NOTE
LABOR LAW REVIEWER
ONE (1) YEAR OF SERVICEservice

Compensation for manual Denotes a higher degree of
within 12 months, whether continuous or broken,
labor employment
reckoned from the date the employee started working
including authorized absences and paid regular
holidays unless the number of working days in the Not subject to execution
establishment, as a matter of practice or policy or as except for debts incurred for
provided in the employment contract, is less than 12 Subject to execution
food, shelter, clothing and
months. SIL is commutable to its monetary equivalent medical attendance
IF it is not used or exhausted at the end of the year.
SERVICE CHARGESAll service NOTE: Sec. 13 (i) of Rule 39 of the Rules of

charges collected by hotels, restaurants and similar Court provides that Except as otherwise expressly
establishments are to be distributed at the rate of 85% provided by law, the following property shall be
for the employees, and 15% for the management. exempted from executionso much of the salaries,
wages, or earnings of the judgment obligor for his
The employees share shall be apportioned personal services within four months preceding the
equally among all employees, regardless of position or levy as are necessary for the support of his family.
employment status. The managements share will
answer for losses and breakages, or at his discretion, HENCE, the second distinction DOES
to distribute this to employees receiving more than P2, NOT APPLY to salaries and/ or wages of the
000 a month. judgment obligor within the four months preceding the
levy as are necessary for the support of his family.
In case service charge is ABOLISHED, the Earnings earned within the said period, whether as
share of employees shall be considered integrated in salaries or wages are exempt from execution.
their wages. This integration shall be based on the
average monthly share of each employee for the past FACILITIESinclude articles or services
12 months immediately preceding the abolition. for the benefit of the employee or his family but shall
not include tools of the trade or articles or service for
To determine whether the compensation of the benefit of the employer or necessary to the
employees in these establishment conform to conduct of the employers business
increases in the statutory minimum wages, only 50%
of the credited service charges shall be included. Requisites before value of facilities can
Where the credited amount is less than the increase be deducted:
prescribed by a minimum wage law, the employer
shall pay the difference.
Proof must be shown that such facilities are
customarily furnished by the trade;
The provision of deductible facilities must be

voluntarily accepted in writing by the employee.
TITLE II
WAGES FACILITIES SUPPLEMENTS
CHAPTER I
Constitute extra remuneration
PRELIMINARY MATTERS
Items of expense or special privileges or
necessary for the laborers benefits given to or received
WAGEthe remuneration or earnings,
and his familys existence by the laborers over and
however designated, capable of being expressed in
and subsistence above their ordinary earnings
terms of money, whether fixed or ascertained on a
wages
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 Part of the wage Independent of the wage
unwritten contract of employment for work done, or to
be done, or for services rendered and includes the fair Deductible from the wage Not wage deductible
and reasonable value, as determined by the Sec. of
Labor, of board, lodging, or other facilities customarily
furnished by the employer to the employee. APPLICABILITY OF TITLE
BASIC WAGEall remuneration or The following are not covered by the

earnings paid by an employer to a worker for services provisions of this Title:
rendered on normal working days and hours but does
not include cost-of-living allowances, profit sharing Farm tenancy and leasehold;
payments, premium payments, 13th month pay or
other monetary benefits which are not considered as Domestic helpers;
part of or integrated into the regular salary of the
workers on the date the Act became effective. Persons in the personal service of another;
WAGE SALARY Home workers engaged in needle work;

LABOR LAW REVIEWER
COVERAGE
Workers in establishments duly registered with
the National Cottage Industries and Development All rank-and-file employees regardless of
Authority in accordance with R.A 3470, provided their designation or employment status and
such workers perform the work in their respective irrespective of the method by which their wages are
homes. paid, are entitled to this benefit provided that they
have worked for at least 1 month during the
calendar year.
CHAPTER II FORMS
MINIMUM WAGE RATES
Christmas bonus;
Art. 99. Regional Minimum Wages
Midyear bonus;
The minimum wage rates for agricultural and
non-agricultural employees and workers in each and Profit sharing payments; and
every region of the country shall be those prescribed
by the Regional Tripartite Wages and Productivity. Other cash bonuses amounting to not less
than1/12 of its basic salary
Art. 100. Prohibition Against Elimination or NOTES

Diminution of Benefits
Difference in opinion on how to compute the 13 th
NON-DIMINUTION RULEthe benefits month pay will not justify a strike.
being given to employees cannot be taken back or
reduced unilaterally by the employer because the 13th month pay must always be in the form of
benefits has become part of the employment contract, legal tender
written or unwritten.
Free rice, electricity, cash and stock dividend,
NOTE: the rule is applicable if it is shown and COLA are not proper substitutes for the 13th
that the grant of the benefits is: month pay
Based on an express policy; or Art. 101. Payment by Results
Has ripened into practice over along period of The Sec. of Labor shall regulate the
time, payment of wages by results, including pakyao,
piecework and other non-time work, in order to ensure
The practice is consistent and deliberate; and the payment of fair and reasonable wage rates,
preferably through time and motion studies or in
It is not due to an error in the construction/ consultation with representatives of workers and
application of a doubtful or difficult question of employers organizations.
law.
WORKERS PAID ON PIECE-RATE
But even in cases of error, it should be BASISthose who are paid a standard amount for
shown that the correction is being done soon after the every piece or unit of work produced that is more or
discovery of the error. less regularly replicated, without regard to the time
spent in producing the same.
BONUSamount granted and paid to an
employee for his industry and loyalty which KINDS OF PIECE-RATE WORKERS
contributed to the success of the employers business
and made possible the realization of profits. Therefore, Those who are paid piece rates as prescribed in
from the legal point of view, it is not a demandable and Piece Rate Orders by the DOLE;
enforceable obligation unless it was promised to be
given without any conditions imposed for its payment Those who are paid output rates which are
in which case it is deemed part of the wage. prescribed by the employer and are not yet
approved by the DOLE.
13th MONTH PAY OR ITS EQUIVALENT BENEFITS PAYABLE TO

PIECE-RATE WORKERS
This is additional income based on wage
required by PD 851 which is equivalent to 1/12 of Applicable statutory minimum wage;
the total basic salary earned by an employee
within the calendar year. It may be given anytime Yearly service incentive leave of 5 days with pay;
but not later than December 24.
Night shift differential pay;
LABOR LAW REVIEWER
Holiday pay; That payments are made at intervals not

exceeding 16 days, in proportion to the amount of
Meal and rest periods work completed;
Overtime pay (conditional)
That final settlement is made upon completion of
Premium pay (conditional) the work.
13th month pay;

Art. 104. Place of Payment
Other benefits granted by law, individual or CBA
or company policy or practice. As a general rule, the place of payment shall
be at or near the place of undertaking. Payment in a
place other than the workplace shall be permissible
only under the following circumstances:
CHAPTER III When the payment cannot be effected at or near

PAYMENT OF WAGES the place of work by reason of the deterioration of
peace and order conditions, or by reason of
actual or impending emergencies caused by fire,
GENERAL RULE: Payment of wages flood, epidemic or other calamity rendering
should be by legal tender payment thereat impossible;
EXCEPTION: Payment by check or money When the employer provides free transportation
order may be allowed if the same is: to the employees back and forth; and
Customary on the date of effectivity of the Labor Under any other circumstances; provided that the
Code; time spent by the employees in collecting their
Necessary because of special circumstances; or wages shall be considered as compensable
hours worked.
Stipulated in the CBA
No employer shall pay his employees in any
The Labor Code prohibits payment of wages
bar, night or day club, drinking establishment,
by means of: (Art. 102)
massage clinic, dance hall, or other similar places or
in places where games are played with stakes of
Promissory notes;
money or things representing money except in the
case of persons employed in said places.
Vouchers;
Coupons;
Tokens; CONDITIONS FOR PAYMENT OF

WAGES THROUGH A BANK
Tickets;
There is a written permission of the majority of
Chits; or the employees or workers concerned;
Any object other than the legal tender, even when Establishment must have at least 25 or more
expressly requested by the employee. employees;
Establishment is located within I kilometer radius

Art. 103. Time of Payment to a commercial , savings or rural bank.
Wages shall be paid at least once every 2

weeks or twice a month at intervals not exceeding 16 Art. 105. Manner of Payment
days. If on account of force majeure or circumstances
beyond the employers control, payment of wages on Wages shall be paid directly to the workers,
or within the time herein provided cannot be made, the to whom they are due, except:
employer shall pay the wages immediately after such
force majeure or circumstances have ceased. No In cases of force majeure rendering such
employer shall make payment with less frequency payment impossible or under special
than once month. circumstances to be determined by the Sec. of
Labor in appropriate regulations, in which case
The payment of wages of employees the worker may be paid through another person
engaged to perform a task which cannot be completed under written authority given by the worker for the
in 2 weeks shall be subject to the following conditions, purpose; or
in the absence of a CBA or arbitration award:
LABOR LAW REVIEWER
Where the worker has died, in which case the

employer may pay the wages of the deceased Liability extends to all rights
worker to the heirs of the latter without the Liability is limited to unpaid duties and liabilities under
necessity of intestate proceedings. wages and other standards labor standards laws
violations including the right to self-
organization
Art. 106. Contracting and Subcontracting Permissible Prohibited by law
LABOR-ONLY CONTACTINGoccurs Contractor has substantial Contractor has no substantial

where the person supplying workers to an employer capital or investment capital / investment
dos not have substantial capital or investment in the
form of tools, equipment, machineries, work premises, NOTE: D.O No. 18-02 -effective 16 March
among others and the workers recruited and placed by 2002 provides that the job contractors must register
such persons are performing activities which are with the DOLE. Failure to register creates a
directly related to the principal business of the presumption that the job contractor is engaged in
employer. labor-only contracting
INDEPENDENT CONTRACTORone Sec 19. Solidary Liability The principal
who exercise independent employment and contracts shall be deemed the direct employer of the contractual
to do a piece of work according to his own methods employees and therefore, solidary liable with the
and without being subject to control of his employer contractor or subcontractor for whatever monetary
except as to the result thereof. claims the contractual employees may have against
the former in case of violations as provided in Sec. 5
REQUISITES FOR LEGITIMATE (Labor-Only Contracting), 6 (Prohibitions), 8 (Rights of
CONTRACTING OR SUBCONTRACTING Contractual Employees) and 16 (Delisting) of these
Rules. In addition, the principal shall also be solidarily
The contractor or subcontractor carries on a liable in case the contract between the principal and
distinct and independent business and the contractor and the subcontractor is preterminated
undertakes to perform the job on his own account for reasons not attributable to the fault of the
and under his own responsibility, according to its contractor or subcontractor.
own manner and method and free form the
control and direction of the principal in all matters FIRST PREFERENCE OF WORKERS
connected with the performance of the work
except as to the results thereof; In case of bankruptcy or liquidation of the
employers business, the unpaid wages and other
The contractor or subcontractor has substantial monetary claims of the employees shall be given first
capital or investment; and preference and shall be paid in full before the claims
of government and other creditors may be paid.
The agreement between the principal and the
contractor or subcontractor assures the
contractual employees entitlement to all labor
and occupational safety and health standards,
free exercise of the right to self-organization,
security of tenure and social and welfare benefits. CHAPTER IV
PROHIBITIONS REGARDING WAGES
Substantial capital need not be coupled with PROHIBITED ACTS REGARDING WAGES
investment in tools or equipment. This is clear from
the use of the conjunction or.
Payment of wages with less frequency than once
a month;
LABOR-ONLY
JOB CONTRACTING Limitations / Interference by the employer with
CONTRACTING
the employees freedom to dispose of his wages;
No employeremployee Forcing, compelling or obliging employees to
relationship exists between purchase merchandise, commodities or other
the employer and the properties from the employer or from any other
Employer is treated as direct
contractors employee person, or to make use of any store or service of
employer of the person
except when the contractor such employer or any other person;
recruited in all instances
or subcontractor fails to pay
the wages of his Withholding of wages;
employees
Deduction of wages as consideration of a
promise of employment or retention in
employment;
LABOR LAW REVIEWER
Refusal to pay, reduction of wages and benefits, The deduction from the employees wage does
discharge/ discrimination against any employee not exceed 20 percent of the employees wages
as retaliatory measures against any employee in a week
who has filed any complaint or instituted any
proceedings against the employer.
Art. 113. Wage deduction CHAPTER V

WAGE STUDIES, WAGE AGREEMENTS
Deductions from the wages of the AND WAGE DETERMINATION
employees may be made by the employer in any of
the following cases:
WHO MAY SET MINIMUM WAGE
WITH THE EMPLOYEE S CONSENT
Regional Tripartite Wages and
SSS payments; Productivity Board;
MEDICARE payments; Congress
Contributions to PAG-IBIG Fund;

MINIMUM WAGE the lowest wage rate
Value of meals and other facilities; fixed by law that an employer can pay his employees
Payments to third persons with employees EFFECTIVITY OF A WAGE ORDER it

consent; shall take effect after 15 days from its complete
publication in at least one newspaper of general
Deduction of absences circulation in the region.
WITHOUT THE EMPLOYEES CONSENT FREQUENCY OF A WAGE ORDER a

Wage Order issued by the Board may not be disturbed
Workers insurance acquired by the employer; for a period of 12 months from its effectivity and no
petition for wage increase shall be entertained during
Union dues, where the right to check-off has said period.
been recognized by the employer;
EXCEPT: when Congress itself issues a
Where the employer is authorized by law or law increasing wages.
regulations issued by the Sec. of Labor;
WAGE STANDARDS
Debts of the employee to the employer which
have become due and demandable In the determination of wage rates, the
following standards shall be considered: (Art 124)
The demand for living wages;
Wage adjustment vis--vis consumer price index;

DEPOSITS FOR LOSS OR DAMAGE
The cost of living and changes or increases
Deposits for loss or damage to tools therein;
materials and equipment supplied by the employer
shall not be made EXCEPT when the trade, The needs of workers and their families;
occupation or businesses of the employer recognizes
or considers the practice of making deductions or The need to induce industries to invest in the
requiring deposits necessary or desirable. countryside;
REQUISITES OF DEDUCTION Improvements in standards of living;

FOR LOSS OR DAMAGE
The prevailing wage levels;
The employee is clearly shown to be responsible
for the loss or damage; Fair return of capital invested and capacity to pay
of employers;
The employee is given ample opportunity to show
the cause why deduction should not be made; Effects on employment generation and family
income; and
The amount of the deduction is fair and
reasonable and shall not exceed the actual loss The equitable distribution of income and wealth
or damage; and along the imperatives of economic and social
development.
LABOR LAW REVIEWER
and imminent danger to the health and safety of

WAGE DISTORTION the workers in the workplace
This is a situation where an increase in Conduct Hearings within 24 hours to determine

prescribed wage rates results in the elimination or whether an order for stoppage of
severe contraction of intentional quantitative work/suspension of operations shall be lifted or
differences in wage or salary rates between and not. Employer shall pay the employees
among employee groups in an establishment as to concerned their salaries in case the violation is
effectively obliterate the distinctions embodied in such attributable to his fault.
wage structure based on skills, length of service, or
other logical bases of differentiations. Require employers to keep and maintain
employment Records as may be necessary in aid
CORRECTION OF WAGE DISTORTION of his visitorial and enforcement powers
For Unionized Establishment ART. 128 ART. 129
Negotiate to correct the distortion;

Power of the Regional Director
Visitorial and
or any duly authorized hearing
Any dispute arising therefrom should be resolved enforcement power of
officers to hear and decide
through the grievance procedure under the CBA; the Sec. of labor or his
matters involving the recovery
duly authorized
of wages, upon complaint of
If the dispute remains unresolved, through representative
any interested party
voluntary arbitration
For Establishments Without Union

Employer- Employee
The employers and workers shall endeavor to Requires the existence relationship not necessary since
correct the distortion; or e-e relationship. it should not include a claim for
reinstatement.
Any dispute arising therefrom shall be settled
Aggregate claim of each
through the NCMB No limit as to amount of
complainant does not exceed P
claim
5,000
If it remains unsettled after 10 days of
Appeal is with the Sec.
conciliation, it shall be referred to the NLRC
of Labor; period to Appeal is with the NLRC; period
appeal is 10 calendar of appeal is 5 calendar days.
Wage distortion is non strikeable
days.
Person exercising the
The employer is obliged to correct a wage distortion.
power is the Sec. of
The power is vested upon
Labor or any of is duly
Regional director or any duly
authorized
authorized hearing officer of the
representatives who
DOLE
may or may be a
regional Director
CHAPTER VI
ADMINISTRATION AND ENFORCEMENT
RECOVERY OF WAGES; SIMPLE MONEY
CLAIMS; RECOVERY POWER
VISITORIAL AND ENFORCEMENT
POWERS The Regional Director is empowered,
through summary proceeding and after due notice, to
The Sec. of Labor or his duly authorized, hear and decide cases involving recovery of wages
including labor regulation officers: and other monetary claims and benefits, including
legal interests, owing to an employee or person
Shall have access to employers records and employed in domestic or household service or house
premises at any time of the day or night helper.
whenever work is being undertaken therein;
including the right to copy therefrom, to question REQUISITES
any employee and investigate any fact, condition
or matter which may be necessary to determine The claim is presented by an employee in
violations or which may aid in the enforcement of domestic or household service or house helper;
the Code and of any labor law, wage order, rules
and regulations. The claim arises from employer-employee
relationship;
Order work Stoppage/ Suspension of Operations
when non-compliance with the law or The claimant does not seek reinstatement;
implementing rules and regulations poses grave
LABOR LAW REVIEWER
The aggregate money claim of each employee or Where the women employees are immediate
house helper does not exceed P5,000. members of the family operating the
establishment or undertaking; and
Under other analogous cases exempted by the

Sec. of Labor in appropriate regulations.
TITLE III
WORKING CONDITIONS FOR SPECIAL GROUPS OF FACILITIES FOR WOMEN
EMPLOYEES
The Sec. of Labor shall require every
CHAPTER I employer to:
EMPLOYMENT OF WOMEN
Provide seats proper for women and permit them
Provisions Regarding Working Women: to use such seats when they are free from work
and during working hours, provided they can
perform their duties in this position without
Art. 130. Prohibition from night work within detriment to efficiency;
certain hours
To establish separate toilet rooms and lavatories
WOMEN CANNOT DO NIGHT WORK for men and women and provide at least a
dressing room for women;
In any industrial undertaking or branch thereof
between ten oclock at night and six oclock in the To establish a nursery in a workplace for the
morning of the following day; or benefit of the women employees therein; and
In any commercial or non-industrial undertaking To determine appropriate minimum age and other
or any branch thereof, other than agricultural, standards for retirement of termination in special
between midnight and six oclock in the morning occupations such as those of flight attendants
of the following day; or and the like.
In any agricultural undertaking at nighttime

unless she is given a period of rest of not less DISCRIMINATION PROHIBITED
than nine consecutive hours
It shall be unlawful for any employer to
EXCEPTIONS discriminate against any woman employee with
respect to terms and conditions of employment solely
The prohibitions prescribed shall not apply in on account of her sex.
any of the following cases:
The following are acts of discrimination
In cases of actual or impending emergencies
caused by serious accident, fire, flood, typhoon, Payment of a lesser compensation, including
earthquake, epidemic, or other disasters or wage, salary or other form of remuneration and
calamity, to prevent loss of life or property, or in fringe benefits, to a female employee as against
cases of force majeure or imminent danger to a male employee, for work of equal value; and
public safety;
Favoring a male employee over a female
In case of urgent work to be performed on employee with respect to promotion, training
machineries, equipment or installation, to avoid opportunities, study and scholarship grants solely
serious loss which the employer would otherwise on account of their sexes.
suffer;
Where the work is necessary to prevent serious STIPULATION AGAINST MARRIAGE

loss of perishable goods;
It shall be unlawful for an employer to
Where the woman employee holds a responsible require as a condition of employment or continuation
position of managerial or technical nature, or of employment that a woman employee shall not get
where the woman employee has been engaged married, or to stipulate expressly or tacitly that upon
to provide health and welfare service; getting married a woman employee shall be deemed
resigned or separated, or to actually dismiss,
Where the nature of the work requires the discharge, discriminate or otherwise prejudice a
manual skill and dexterity of women workers and woman employee merely by reason of her marriage.
the same cannot be performed with equal
efficiency by male workers; PROHIBITED ACTS
It shall be unlawful for any employer:
LABOR LAW REVIEWER
To deny any woman employee the benefits fro in

this Chapter or to discharge any woman Where the childs employment or participation in
employed by him for the purpose of preventing public entertainment or information through
her from enjoying any of the benefits provided cinema, theater, radio, or television is essential
under this Code; provided that:
To discharge such woman on account of her Employment does not involve

pregnancy, or while on leave or in confinement advertisements or commercials promoting
due to her pregnancy. alcoholic beverages, intoxicating drinks,
To discharge or refuse admission of such woman tobacco and its by-products or exhibiting
upon returning to her work for fear that she may violence;
again be pregnant.
There is a written contract approved by the
CLASSIFICATION OF CERTAIN DOLE; and
WOMEN WORKERS
The conditions prescribed for the
Any woman who is permitted or suffered to employment of minors are met.
work, with or without compensation, in any night club,
cocktail lounge, massage clinic, bar or similar
establishment, under the effective control or HAZARDOUS WORK PLACES
supervision of the employer for a substantial period of
time as determined by the Sec. of Labor, shall be Where the nature of the work exposes the
deemed considered as employee of such workers to dangerous environmental elements,
establishment for purposes of labor and social contaminants or work conditions;
legislation.
Where the workers are engaged in construction
RA 7322 work, logging, fire-fighting, mining, quarrying,
MATERNITY BENEFITS ACT blasting, stevedoring, dock work, deep-sea
fishing, and mechanized farming;
RA 7877
1995 ANTI-SEXUAL HARRASSMENT ACT Where the workers are engaged in the
manufacture or handling explosives and other
RA 8187 pyrotechnic products;
1996 PATERNITY LEAVE ACT
Where the workers use or are exposed to heavy
or power-driven machinery or equipment; and
CHAPTER II Where the workers use or are exposed to power-

EMPLOYMENT OF MINORS driven tools.
GENERAL RULENo child below 15 shall NO CHILD DISCRIMINATION

be employed. Any person between 15 and 18 years of
age may be employed for such number of hours and No employer shall discriminate against any
such periods in any non-hazardous work. person in respect to terms and conditions of
employment.
CONDITIONS OF THE EMPLOYMENT

OF A CHILD BELOW 15
(Sec. 3 of the Rules and Regulations Implementing CHAPTER III

R.A .No. 7658) EMPLOYMENT OF HOUSEHELPERS
When the child works directly under the sole

responsibility of his/her parents or legal guardian COVERAGE: applies to all persons
who employs members of his/her family only on rendering services in the household for compensation
the following conditions:
Employment does not endanger the childs life, DOMESTIC OR HOUSEHOLD SERVICE
safety, health and morals; services in the employers home which is usually
necessary or desirable for the maintenance and
Employment does not impair the child normal enjoyment thereof and includes ministering to the
development; and personal comfort and convenience of the members of
the employers household, including services of family
The parental/legal guardian provides the child drivers.
primary and/ or secondary education prescribed
by the Department of Education.
LABOR LAW REVIEWER
RIGHTS OF HOUSEHELPERS
The employer may require the homeworker to
Right to minimum cash wage (Art. 144); redo the work which has bee improperly
executed without having to pay the stipulated rate
Right to non-assignment to non-household work (Art. again;
145);
An employer, contractor, or subcontractor need
Right to opportunity for education: if under 18 cost of not pay the homeworker for any work which has
education is part of compensation (Art. 146) been done on goods and articles which have
been returned for reasons attributable to the fault
Right to board / lodging, medical attendance (Art. 148) of the homeworker.
Right to just and humane treatment;
Right to indemnity for unjust termination of services BOOK IV

when the period of household service ids fixed(Art. HEALTH, SAFETY AND SOCIAL WELFARE
149); BENEFITS
Right to just causes for termination;

This portion is undergoing revision up to this
Right not to be required to work more than 10 hours a time.
day;
The following are the most important points
Right to four days vacation each month; to remember:
Right to regular wages if employed in industrial or Compensability Formula:

commercial or agricultural undertaking;
Compensability = SSS/GSIS + AOO
Funeral expenses must be paid by employer and ICO SID
Coverage
CHAPTER IV
Employersall employers on the first day of
EMPLOYMENT OF HOMEWORKERS
operation.
INDUSTRIAL HOMEWORKa system of
Employeesall employees not over 60 years of
production under which work for an employer or
age on the first day of employment.
contractor is carried out by a home worker at his
home.
Those over 60 are covered PROVIDED, they
INDUSTRIAL HOMEWORKERa worker have been paying ECC contributions before
who is engaged in industrial homework. reaching 60 years old and they have not been
compulsorily retired.
RULE ON DEDUCTIONS
Those covered by both SSS and GSIS shall be
No employer, contractor, or subcontractor compulsorily covered by both systems.
shall make any deductions from the home workers
earnings for the value of materials which have been
lost, destroyed, soiled or otherwise damaged unless Meaning of AOO (Arising out of) and ICO
the following conditions are met: (In the course of) Employment
The homeworker concerned is clearly shown to AOO pertains to the origin or cause of
be responsible for the loss or damage; Sickness, Injury or Death (SID).
ICO pertains to circumstances of Place or

The homeworker is given reasonable opportunity
Time to show causation of SID.
to show cause why deduction should not be
made;
The Place / Time Test should be used to
test work-connection. Hence, AOO and ICO simply
The amount of such deduction is fair and
mean work-connected. In other words, if SID are
reasonable and shall not exceed the actual loss
work-connected then they are compensable.
or damage;
Sickness (S)
The deduction is made at such rate that the
amount deduced does not exceed 20% of the First Formula:
homeworkers earnings in a week.
CONDITIONS FOR PAYMENT OF WORK

LABOR LAW REVIEWER
Compensable S = OD (Occupational Disease, Annex OFF-PREMISES Rules:

A)
Ingress-Egress/ Proximity Rule
Rule: Inclusio Unios Est Exclusio Alterius (What is
not listed as an occupational disease is NOT Iloilo Dock vs. WCC,
compensable) L-26341, November 27, 1978
Exception: Proximate Cause Rule Pablo, who was employed as a mechanic of

the IDECO, while walking on his way home, was shot
to death in front of, and about 20 meters away from,
Belarmino vs. ECC, the main IDECO gate, on private road commonly
GR No. 90104, May 11, 1990 called the IDECO road.
Belarmino, a classroom teacher, while RULING: As a general rule, employment

performing her duties in class , who was in her 8th may be said to begin when the employee reaches the
month pregnancy, accidentally slipped and fell on the entrance of the employers premises where the work
classroom floor. She suffered abdominal pain and is to be done. BUT it is clear that in some cases the
stomach cramps. 11 days after the accident, she rules EXTENDS to INCLUDE adjacent premises used
delivered a baby girl prematurely. She suffered from by the employee as a means of ingress and egress
SEPTICEMIA POST PARTUM and died 7 days later. with the express or implied consent of the employer.
RULING: Her fall on the classroom floor Going to or Coming from Work Rule
brought about her premature delivery, which caused
the development of septicemia post partum, which Alamo vs. ECC
resulted in death. Her fall was the PROXIMATE or GR No. 48594, March 16, 1988
responsible cause that set in motion an unbroken
chain of events, leading to her demise. Her fall was Dedicacion was a school principal, who
the primary injury that arose in the course of her while waiting for a ride at a public plaza on her way to
employment of as a classroom teacher; hence all the school, was bumped and run over by a speeding bus
medical consequences flowing from it are which caused her death.
COMPENSABLE.
RULING: The deceased died while going to
Second Formula: her place of work, thus, COMPENSABLE.
Compensable S = IRR (Increased Risk Rule) Acts of Ministration
Rules: Reasonable Work-Connection Rule Chua Yeng vs. Roma

Substantial Evidence Rule L-14827, October 31, 1960
An employee went to the house of the

employer across the warehouse where he worked to
Clemente vs. GSIS get a drink of water. There, while trying to drive away
GR No. 4721, July 31, 1987 a puppy that he saw eating fish in the employers
kitchen, he was bitten in the hand. As a result, he
The husband of claimant worked clinic as a died of hydrophobia.
janitor of the skin clinic. He was exposed to different
carriers of viral and bacterial diseases. He contracted RULING: COMPENSABLE on the ground
nephritis, leprosy, etc. because of his work. that his trip to the kitchen was occasioned by the
employers fault not providing adequate drinking water
RULING: The working conditions of at the warehouse.
claimants husband increased the risk of his
contracting the ailments, thus, COMPENSABLE. Acts for the Benefit of the Employer
Injury/ Death (ID) Versoza vs. Loyola

L-7789, May 27, 1955
Formula: (Direct Premises Rule)
An employee of a bus firm, while
Compensable ID = PT (occurs at the PLACE where undertaking to retrieve personal belongings of a
ones work requires him to be; and occurs during passenger, meets with an accident outside his
TIME of work) assigned territory. Such an accident arises out of and
in the course of his employment because his act
Exceptions: enhances the prestige of the employer and results in
increased patronage of the services of his employers
ID covered by Off-Premises Rule. In other common carrier.
words, ID are compensable even if they take place
outside the Place of Work and outside Working Time. Afable vs. Loyola
L-7789, May 27, 1955
LABOR LAW REVIEWER
of the employer, sustained while so traveling, as

The repair of a truck used by a business arising out of and in the course of the employment.
associate of the employer, which is used in operations
directly beneficial to the latter, was held within the Compensable
scope of the employment.
Out-on-business trip
Paez vs. WCC Traveling salesmen for purposes of workmens
L-18438, March 30, 1963 compensation, covers both the time and place of
the traveling as well as the selling of goods,
The drowning of an employee following his
voluntary assistance to a fellow employee was ID covered by the Special Engagement Rule.
deemed to have arisen out of the employment, since
the assistance was for the benefit of the employer. Recreational activities fall under the so-
called Special Engagement Rule which is one of the
Acts During Emergency exceptions to the direct premises rule. This exception
covers field trips, intramurals, outings, and picnics
Estandarte vs. Philippine Motor Corp. when initiated or sanctioned by the employer.
L-39724, Nov. 1, 1933
Death of an employee, in an attempt to rescue

arose out of the employment.
LABOR RELATIONS
Extra-Premises Rule or Shuttle Bus Rule
The company which provides the means of JURISDICTION AND PROCEDURE

transportation in going to and coming from the place
of work is liable for the injury sustained by employees LABOR DISPUTE
while on board said means of transportation. This is
because the company vehicle is an extension of its Nature: Dispute arises from employer-
premises. employee relationship, although disputants need not
be proximately employee or employer of the other.
Special Errand Rule
Subject Matter
Enao vs. ECC
135 SCRA 660 (1985) Dispute concerns:
While traveling to buy school supplies, the Terms or conditions of employment; or
employee was ambushed along the way.
Association or representation of persons in
RULING: Where the claimant was
negotiating, fixing, maintaining, or changing
performing official functions, it hardly matters that she
terms or conditions of employment.
was injured outside regular working hours and beyond
her place of work.
KINDS OF LABOR DISPUTES
LBL Rule (Living, Boarding or Lodging on
Labor Standards Disputes
premises of employer, or at working place)
Compensation
General Rule: An injury to an employee
LBL on the employers premises, or at the place where
the work is being done, pursuant to an express or Benefits
implied requirement of the contract of hiring, if
reasonably attributable or incidental to the nature of Working conditions
the employment, or to the conditions under which he
lives in the performance of his duties, is to be Labor Relations Disputes
regarded as having arisen out of and in the course of
such employment. Organizational right dispute/ULP
Exception: If merely permissive and not Representation disputes

required, or the injury results from the risk or danger
which is not reasonably incidental to the employment. Bargaining disputes
Traveling Rule Contract administration or personnel policy

disputes
The right of compensation depends with
respect to the compensability of injuries to employees, Employment tenure disputes
the performance of whose duties necessitates their
traveling from place to place away from the premises REMEDIES IN LABOR DISPUTES
LABOR LAW REVIEWER
Grievance procedure
II
Conciliation NLRC JURISDICTION
Mediation
Original Jurisdiction
Enforcement or compliance order
Certification of bargaining representatives Cases certified to it for compulsory arbitration by
the President or Sec. of Labor and Employment
Arbitration (voluntary/compulsory) pursuant to Arts. 263 and 264 of the LC
Assumption of jurisdiction Cases on injunction pursuant to Arts. 218 and

264 of the LC; and
Certification to NLRC
Contempt cases pursuant to Art.218 of the LC
Injunction
Appellate Jurisdiction
Judicial action
Cases decided by the regional offices of the
Appeal
DOLE in the exercise of its adjudicatory function
pursuant to Art. 129 of the LC; and
Judicial review
Cases decided by the LAs pursuant to Art. 217(b)
Compromise agreement
of the LC and see 10 of RA 8042 (overseas
contract workers)
JURISDICTION OF LABOR ARBITERS
POWERS OF THE NLRC
Unfair labor practices cases / gross violation of
CBA
Rule-making power
Termination Disputes Power to promulgate rules and regulations
governing:
Money claims (arising from ER-EE relationship)
regardless of amount, when accompanied with a The hearing and disposition of cases before
claim for reinstatement exceeds P5,000.00, it and its regional branches;
whether or not accompanied with a claim for
reinstatement. Exception: SSS / ECC / The hearing and disposition of cases
Medicare claims pertaining to its internal functions;
Claims for damages arising from employer- Those as may be necessary to carry out the
employee relations purposes of the Code
Strikes and lockouts Power to issue compulsory processes
Cases involving overseas workers and seamen Administer oaths
Any or all of the above cases can, by agreement Summon parties; and
of the parties, be presented to and decided with
finality by voluntary arbitration of a panel of Issue subpoenas ad testificadum and duces
voluntary arbitrators tecum
The original and exclusive jurisdiction of the Power to investigate and hear disputes
labor arbiter under article 217 (c) for money claims is within its jurisdiction
limited only to those arising from statutes or contracts
other than a CBA The labor arbiter has no jurisdiction Conduct investigation for the determination
over intra-corporate disputes of a question, matter or controversy within
its jurisdiction; and
Article 263 (g) empowers DOLE Secretary
or the President of the Republic to assume jurisdiction Proceed to hear and determine the disputes
or refer the case to the NLRC if the labor dispute or in the manner laid down under paragraph (c)
impending strike or lockout involves an industry of Art. 218
indispensable to national interest
Contempt Power
LABOR LAW REVIEWER
Hold any person in contempt directly or Execution of the order of the Regional director
indirectly shall be stayed pending appeal (IR: Book 5Rule
XIV Sec 8)
Power to conduct ocular Inspection
The decision of the Bureau shall be final and
unappealable (Sec. 7,Ibid)
ISSUANCE OF INJUNCTION OR TRO
D.O#9 decisions on intra union disputes
Power is reserved specifically to the NLRC the appeal from the regional level is to the BLR
however, rules of procedure (1990) of the NLRC, Director Bureau shall have the power to require the
provides that ancillary power of issuing preliminary appearance of any person or the production of any
injunction or TRO may be exercised by the Labor paper, document or matter relevant to a labor dispute
Arbiters only as an incident to the cases pending under its jurisdiction (Art. 229)
before them in order to protect the rights of the parties
during the pendency of the cases by excluding labor
disputes involving strikes or lockout.
IV
Sec 5 Rule XVI, Book V of Rules JURISDICTION OF VOLUNTARY ARBITRATORS
implementing the code, allows med-arbiters to do the
same. Original and Exclusive Jurisdiction
The power of the NLRC to enjoin or restrain To hear and decide the following:
the commission of any or all prohibited or unlawful
acts as provided in Art. 218 of the labor Code, can Disputes arising from interpretation or
only be exercised in a labor dispute enforcement of company personnel policies;
Unresolved grievance arising from interpretation

or implementation of a collective bargaining
III agreement and those arising from the
JURISDICTION OF THE BUREAU interpretation or enforcement of company or
OF LABOR RELATIONS personnel policies.
The BLR and the Labor Relations Division in Upon agreement of the parties, shall also hear
the regional offices of the DOLE shall have original and decide all other labor disputes including
and exclusive authority to act, at their own initiative or unfair labor practices and bargaining deadlocks.
upon request of either or both parties, on the
following:
V
All inter-union conflicts;
GRIEVANCE MACHINERY
All intra-union conflicts; and No particular set-up is mandated by law
All disputes or problems arising from or affecting GRIEVANCE PROCEDUREan appeal
labor-management relations in all workplaces procedure and a must provision in every CBA. It is
except those arising from the implementation or that part of the agreement which provides for a
interpretation of CBAs peaceful way of settling differences and
misunderstanding by and between the parties
themselves
ADMINISTRATIVE FUNCTIONS
OF BLR / LR DIVISION MINIMUM REQUIREMENTS FOR
ESTABLISHMENT OF GRIEVANCE
Regulation of registration of Labor Unions; PROCEDURE
Keeping of registry of labor unions; and
The minimum legal requirements for the
Maintenance of a file of CBAs establishment of the grievance procedure referred to
in Title VII-a of the Labor Code:
NOTES
The grievance machinery established by the
Concurrent jurisdiction of BLR and Labor parties should be so efficient to ensure mutual
Relations Division in each Regional office of observance to the CBAS terms and conditions,
DOLE for the resolution and adjustment of grievances
arising form the CBA interpretation of
Denial of application for registration in the enforcement of company personnel policies;
regional office is appealable within 10 days to the
BLR
LABOR LAW REVIEWER
The parties should include in the agreement a Right to a hearing

procedure for the selection of voluntary arbitrator
or panel of voluntary arbitrators or name and The body must consider the evidence presented
designate in advance a voluntary arbitrator or
voluntary arbitrators Decision must be supported by evidence
AVAILMENT OF GRIEVANCE MACHINERY AND Supporting evidence must be substantial

VOLUNTARY ARBITRATION
Decision must be rendered on the evidence
Before an aggrieved employee may resort to presented or at least contained in the record and
the courts to enforce his individual rights, he must disclosed to the parties affected
exhaust all the remedies available to him under the
contract; and a court should not entertain any The body or jury of judges must act on his
complaint until proper use has been made of the independent consideration of the law and facts,
contract grievance procedure agreed upon by the and not simply accept the views of the
parties. subordinate in arriving at a decision; and
Decide in such a manner that parties can know
PROCEDURE the various issues involved and the reasons for
the decision
The rules of evidence prevailing in courts of
law or equity shall not be controlling and the Non-lawyers may appear before the
commission and its members and LAs shall use every NLRC or any LA only:
and all reasonable means to ascertain facts in each
case speedily and objectively and w/o regard to
If they represent themselves;
technicalities of law; not bound by technical rules of
procedure in the adjudication of cases
If they represent here organization or member
thereof
However, this procedural rule should not be
construed as a license to disregard certain
fundamental evidentiary rules If he is a duly-accredited member of a legal aid
office duly recognized by the DOJ or IBP in
The evidence presented before it must at cases referred thereto by the latter.
least have a medium of admissibility for it to be given
probative value The rule on substitution of counsel or
employment of additional counsel is still observed in
The NLRC Rules provide that immediately labor cases; there can be no valid substitutions of
after submission by the parties of their position counsel until the prescribed procedure id followed:
papers/ memorandum, the LABOR ARBITER shall
motu proprio determine whether there is a need for a APPEAL
formal trial or hearing. He may at his discretion ask
questions for clarification. Period to file an appeal
Labor cases can be decided on the basis of
position papers and other documents submitted by the Decision or orders of the Labor Arbiter may
contending parties w/o resorting to the technical rules be appealed to the NLRC by any or both parties w/in
of evidence observed in the court of justice a trial is 10 days calendar form receipt of such decisions or
discretionary on the LA. orders
Submission of position papers w/o a hearing The 10 day period should be counted not
is not a violation of due process, provided that the from the date of receipt of the decision/order by a
parties are given the opportunity to be heard and party but from the date of receipt by his lawyer.
present their case
Mandatory but allows exceptions
The lack of verification of the position paper-
affidavit is a formal, rather than substantial, defect; it is Grounds for appeal
not fatal and would easily be corrected by requiring an
oath. Prima facie evidence of abuse of discretion
The principle of res judicata may not be Fraud or coercion including graft and corruption
involved in labor relations proceedings since it is a in securing the decision
non-litigious and summary in nature w/o regard to
legal technicalities obtaining in court of law Pure questions of law; and
(administrative functions) however, res judicata may
be a reason to dismiss a complaint Serious errors in findings of facts causing grave
or irreparable damage or injury
CARDINAL RIGHTS IN
QJ PROCEEDINGS Requirements for appeal to the NLRC
LABOR LAW REVIEWER
Memorandum of appeal, under oath; With grave abuse of discretion and praying that
judgments be rendered annulling or modifying the
Appeal or docket fee; proceedings, as the law requires, of such
tribunal, board or officer
Cash or sorely bond, if the judgment involves
monetary award, It may be filed not later that 60 days from
notice of the judgment, order or resolution. Both SC
Service of copy to the adverse party and CA has jurisdiction over the action; however in
line with the doctrine of minatory of warts, the petition
A mere notice of appeal does not constitute should initially be presented to the lower of the two
an appeal doctrine of immutability of final judgments. courts, that is, the CA
Once judgment has become final and

executory, it may no longer be modified in any XI
respects, EXECUTION OF JUDGMENTS
Property bond cannot substitute the A writ of execution may be issued by the
requirement of cash or surety bond. following officials for the final decisions, orders or
awards promulgated by them:
In cases of perfected appeals, the NLRC
limits itself to reviewing issues which were raised on Secretary of DOLE
appeal, the rest shall be final and executory
Any regional director
IX NLRC
MOTION FOR RECONSIDERATION
Any labor arbiter
A party is allowed to file a motion for Any med-arbiter
reconsideration of any order, resolution or decision of
the NLRC based on palpable or patent errors, The voluntary arbitrator; or
provided that the motion is under oath and filed within
10 calendar days from receipt of the order, resolution
The panel of arbitrators
or decision.
It may be issued motu proprio or on motion
It is a pre-condition for pursuing any further
of any interested party within 5 years from the date it
or subsequent remedy, otherwise the said order,
becomes final and executory
resolution or decision shall become final and
executory after 10 calendar days from receipt thereof
REINSTATEMENT
Requirement of a Motion for
The decision of the LA reinstating a
Reconsideration may be dispensed with in the
dismissed OR separated employee, shall be
following instances:
executory, even pending appeal:
When the issue raised is one or purely of law The employee shall either be:
Where public interest is involved Admitted back to work under the same terms and
conditions prevailing prior to the dismissal or
In cases of urgency separation; or
Where special circumstances warrant immediate At the option of the employer, merely reinstated
or more direct action into payroll
The posting of a bond by the employer shall

X not stay the execution of reinstatement
PETITION FOR CERTIORARI
Under Rule 65, ROC VENUE
A party may avail itself of the civil action for For purpose of venue, workplace shall be
certiorari, where the tribunal, board or office exercising understood as the place or locality where the
juridical functions: employee is regularly assigned when the cause of
action arose.
Has acted without or in excess of jurisdiction;
and, or Work place shall include the place where the
employee is supposed to report back after a
temporary detail, assignment or travel.
LABOR LAW REVIEWER
work performance and pays the salary or wage of the

In the case of field employees, as well as hiree.
ambulant or itinerant workers, their workplace is where
they are regularly assigned or where they are EMPLOYMENT STATUS
supposed to regularly receive their salaries/wages or
work instructions from and report the results of their The employment status of a person is
assignment to their employers. defined and prescribed by law and not by what the
parties say it should be.
Where 2 or more regional arbitration branch
have jurisdiction over the workplace, the branch that It is a condition sine qua non that before a
shall first acquire jurisdiction over the case shall person can exercise the totality of employees rights
exclude the others. granted by the constitution and status vis--vis an
When improper venue is not objected to employer, an employer-employee relationship must
before or at the time of filing of position papers, such exist between him and his alleged employer.
question shall be deemed waived.
FOUR-FOLD TEST OF EMPLOYER-
The venue of an action may be changed or EMPLOYEE RELATIONSHIP
transferred by written agreement of the parties or
when the NLRC or LA before whom the case is Selection and engagement of the employee
pending so orders, upon motion by the proper party in
meritorious cases. Payment of wages
COMPROMISE AGREEMENTS Power of dismissal
Any compromise settlement agreed to by Employers power to control the employee's

the parties with the assistance of the BLR or the conduct.
regional office of the DOLE is final and binding upon
the parties. The existence of an employer-employee
relationship cannot be avoided simply by repudiating
It shall be reduced in writing and signed by it.
the parties in the presence of the regional director of
his duly authorized representative. CONTROL TEST
A compromise agreement may be effected The control test only requires the existence
at any stage of the proceedings and even when there of the right to control the manner of doing the work of
is already a final executory judgment. a person, not necessarily the actual exercise of the
power by the employer, which can be delegated.
The NLRC or any court shall not assume
jurisdiction over issues involved therein, except: RIGHTS OF EMPLOYEES
In case of non-compliance with the compromise The rights of the employee are:
agreement., or
Security of tenure
If there is prima facie evidence that the settle was
obtained through fraud, misrepresentation or Due process
coercion.
SECURITY OF TENURE
The constitutional right granted the

employee to be secured or to continue in employment
EMPLOYER-EMPLOYEE RELATIONSHIP until the same is terminated by virtue of a just cause
or on grounds authorized by law.
EMPLOYER
Security of tenure applies not only to actual
A person, natural or judicial, who engages dismissals but also applies if there is constructive
the services of another for compensation, controls the dismissal.
latters means and method of performance or has
reserved the exercise of said right, and possesses the Coverage: extends to all types of
power to dismiss the latter. A person acting in the employees
interest of such employer is also deemed on employer
EMPLOYEE CLASSIFICATION OF EMPLOYEES
A natural person who is hired, directly or Regular

indirectly, by a natural or judicial person to perform
activities related to the business of the hirer who, Project
directly or through an agent, supervises or controls the
LABOR LAW REVIEWER
During off-season, employer-employee

Seasonal relationship is not severed. The seasonal employee is
merely considered on a leave of absence without pay.
Casual
Fixed-period CASUAL EMPLOYEE
Probationary Engaged to work on an activity that is not

usually necessary or desirable in the usual business
REGULAR EMPLOYEE or trade of the employer.
An employee is deemed regular where the If the casual employee has worked for at
employee: least one year whether continuously or broken he
becomes a regular employee.
Has been engaged to perform activities which are
usually necessary or desirable in the usual trade FIXED PERIOD EMPLOYEE
or business of the employer; or
Employee whose employment will last only
Has rendered at least one year of service, for a definite period as agreed by the parties
whether continuous or broken, with respect to the
activity in which he is employed. Requisites:
Even handicapped persons, employed for The fixed period was knowingly and voluntarily
humanitarian reasons, may become regular agreed upon by the parties.
employees if they are doing necessary or
desirable jobs and their employment has The employer and the employee dealt with each
exceeded six months through renewal of their other on more or less equal terms with no moral
initial appointments (Bernardo Ruling). dominance being exercised by the employee
(Brent School Ruling).
PROJECT EMPLOYEE
It is not valid if it is apparent that periods
A project employee is one whose have been imposed to preclude acquisition of tenurial
employment has been fixed for a specific project or security by the employee.
undertaking, the completion or termination of which
has been determined at the time of the engagement of PROBATIONARY EMPLOYEE
the employee.
One who is on trial by an employer during
Must be in good faith which the employer determines whether or not he is
qualified for permanent employment.
Service is coterminous with the project
Period: limited to six months
Employer has no obligation to give him
Exceptions:
separation pay
When the parties to an employment contract
agree otherwise
A project employee may acquire the status
of a regular employee when the following concur:
When the same is established by company
policy.
Continuous rehiring of project employees even
after cessation of a project;
When the same is required by the nature of work
performed by the employee.
The task performed by the alleged project
employee is vital, necessary, and indispensable
Extensions
to the usual business or trade of the employer.
Extension should be done before the lapse
of the 6 month period.
SEASONAL EMPLOYEES
It may be terminated:
One who is engaged to work during a
particular season in an activity that is usually For a just and authorized cause
necessary or desirable in the usual business or trade
of the employer When he fails to qualify as regular employee
Standards of employer should be made

known to the person on trial at the time of his
engagement. Otherwise, he is deemed regular.
LABOR LAW REVIEWER
Serious Misconduct or willful disobedience

The employee who is allowed to work after a by the employee of the lawful order of his
probationary period shall be considered a regular employer or representative in connection
employee by operation of law. with his work.
Private School Teachers Serious Misconduct
Requisites for acquisition of permanent Transgression of some established and definite

employment: rule of action, a forbidden act, a dereliction of
duty, willful in character, and implies wrongful
Teacher is a full time teacher intent and not mere error in judgment.
Must have rendered three consecutive years of Grave and aggravated character and not merely
service trivial or unimportant; Must be in connection with
the work of the employee.
Service must have been satisfactory
Sexual harassment is serious misconduct.
Willful Disobedience
DUE PROCESS
Elements
Requisites for due process under Article
277: Assailed conduct must have been willful or
intentional, willfulness characterized by a
wrongful, perverse mental attitude
Written notice together with grounds or offenses
charged. It must be established that the said orders,
regulations or instructions are
Opportunity to be heard by means of a formal
investigation. ~ Reasonable and lawful
Subsequent formal and written notice of ~ Sufficiently known to the employee

termination.
~ In connection with his duties
Plus other requisites as may be provided by
company handbooks in addition to the first three.
Gross and habitual neglect by the employee
Article 277 applies only to termination and of his duties.
not to disciplinary actions unless provided by the
company. The want of any slight care or the utter disregard
of consequences without exerting any effort to
avoid them
VALIDITY OF DISMISSAL
It is not necessary for the employer to show that
General Postulates of Validity he has incurred actual loss, damage or prejudice
by reason of the employee's conduct.
TERMINATION = Substantial
VALIDITY Validity ABANDONMENT
+
Procedural Prerequisites:
Validity
Intention of the employee to abandon his or
SUBSTANTIAL = Just or her employment
VALIDITY Authorized
Cause An overt act from which such intention may
be inferred
PROCEDURAL = Notice and
VALIDITY Hearing Burden is on the employer to prove the deliberate
and unjustified refusal of the employee to return
to work or resume his employment
SUBSTANTIAL VALIDITY
The filing of a case of illegal dismissal is proof of
Article 282 JUST CAUSES (SGFCO) lack of intention to abandon job.
But the rule that abandonment of work is

inconsistent with the filing of a complaint for
LABOR LAW REVIEWER
illegal dismissal is not applicable in a case where

the complaint does not pray for reinstatement but May be used as valid justification for dismissal
asks for separation pay instead. from work only if these are related to the
subsequent offense upon which the termination
Fraud or willful breach by the employee of of employment is decreed
the trust reposed in him by his employer or
duly authorized representative. Analogous Causes
Fraud Must be due to the voluntary and/or willful act or

omission of the employee
Any act, omission or concealment which involves
a bread of legal duty, trust or confidence justly
reposed in one and injurious to another GROSS INEFFICIENCY when valid as ground
for dismissal:
Must be committed against the employer or his
representative There must be a work standard
Since fraud implies willfulness or wrongful intent, Employee must be given a reasonable time
the innocent non-disclosure of facts by employee to improve performance, make up the grade
will not constitute a just cause for dismissal or meet the quota
Loss of Trust and Confidence
Must be related to the performance of the COGNATE OFFENSES RULE

employees function.
Dismissal due to repetition of related offenses,
even if already punished with less punitive
sanctions.
For RANK-AND-FILE
Other Just Causes:
There must be proof of involvement in the alleged
events in question; mere uncorroborated Non-compliance with return to work order
accusations not sufficient.
Expulsion from union
For MANAGERIAL EMPLOYEES
Violation of Anti-Sexual Harassment Act
Mere existence of some basis for believing such
breach of trust would suffice. Doctrine of Incompatibility
Guidelines Where the employee has done something

that is contrary or incompatible with the faithful
Loss of trust and confidence should not be performance of his duties, his employer has a just
simulated; cause for terminating his employment.
It should not be used as subterfuge for

causes which are improper, illegal and Articles 283 and 284 AUTHORIZED CAUSES
unjustified;
REDUNDANCY
It should not be arbitrarily asserted in the
face of overwhelming evidence to the Exists where the services of an employee are in
contrary; and excess of what would reasonably be demanded
by the actual requirements of the enterprise
It must be genuine, not a mere afterthought
to justify earlier action taken in bad faith. A position is redundant when it is superfluous.
Sexual harassment perpetrated by an assistant An employee has no legal obligation to keep on

manager against the secretary is an example of the payroll employees more than the number
loss of trust and confidence. needed for the operation of the business.
An employers good faith in implementing a

redundancy program is not necessarily put in
Commission of a crime or offense by the doubt by the availment of the services of the
employee against the person. terminated employees to promote economy and
efficiency.
Conviction or prosecution is not required.
RETRENCHMENT
PAST OFFENSES
LABOR LAW REVIEWER
Requisites:
Supreme Court agreed with the NLRC in not
It is intended to prevent losses requiring separation pay to the employees of a
business closed down by financial losses
Written notices are served on the workers An employer who has ceased operation because
and the DOLE at least one month before the of compulsory acquisition by the government of
effective date of retrenchment its land for purposes of agrarian reform is not
liable to pay separation pay to its affected
Separation pay is paid to the affected employees.
workers.
RELOCATION may be considered as cessation
Two notices are mandatory; if the notice to of business. The employer must pay separation
the workers is given later than the notice pay.
sent to DOLE, the date of termination should
be at least 1 month from the date of notice SALE IN GOOD FAITH; OBLIGATIONS OF
to the workers. TRANSFEREE
Standards There is no law that requires the purchaser to

absorb the employees of the selling corporation.
The losses expected should be substantial
and not merely de minimis in extent. The termination of the services of employees
even if done in good faith and reasonable, will not
The substantial loss apprehended must be allow the employer (the selling corporation) to
reasonably imminent, and such imminence avoid payment of the corresponding separation
can be perceived objectively and in good pay.
faith.
SALE IN BAD FAITH
It must be reasonably necessary and likely
to effectively prevent the expected losses. Parties to the sale are liable to the employees of
the sold enterprise if the transaction is colored or
The alleged losses if already realized, and clothed with bad faith.
the expected imminent losses sought to be
forestalled, must be proven by sufficient and MERGER
convincing evidence.
The principle that employment contract is
AUTOMATION / LABOR SAVING DEVICES personal and binding only between the parties
applies only when the transferee is an entirely
Reduction of the number of workers in a new corporation with a distinct personality from
companys factory made necessary by the the integrating firms and NOT where the
introduction of machinery in the manufacture of transferee is found to be merely an alter ego of
products to effect economy and efficiency the merging firms.
CLOSURE OF BUSINESS DISEASE
Must be bona fide or in good faith Requirements:
Not necessary that the entire enterprise The continued employment of the worker
ceases to operate; it is sufficient that the found suffering from an illness is prohibited
establishment, department or unit where the by law or prejudicial to his health as well as
employee is employed closes the health of his co-employees.
Closure must be permanent. Otherwise, it There is a certification by a competent

merely suspends the employment public authority.
relationship.
The disease cannot be cured within a period
Requirements for cessation not due to of 6 months even with proper medical
business reverses: treatment.
Service of a written notice to the DOLE at NOTEThe companys own physician is not a
least 1 month before the intended date competent public health authority.
thereof
If the disease or ailment can be cured within a
Cessation of or withdrawal from business period of 6 months, the employer shall not
operations must be bona fide in character terminate the employee but shall ask the
employee to take a leave.
Payment to the employees of termination
pay
LABOR LAW REVIEWER
Reinstatement to his former position immediately and imminent threat to life and property of
upon the restoration of his normal health employer, or of his co-employees
It there is evidence sufficiently showing the Max period: 30 days

employees fitness to resume his work, his
termination through compulsory retirement for Can be extended provided the employer pays the
exhaustion of sick leave benefits is illegal for lack suspended employee his wages and other
of basis. benefits
Guidelines to Determine the Validity of Rule pending investigation:

Termination:
PREVENTIVE SUSPENSION is not punitive
Gravity of the offense for the first 30 days because it is intended only
for the purpose of affording management
Position occupied by the employee unhampered opportunity to investigate; hence
period of suspension is NOT COMPENSABLE
Degree of damage to the employer
Rule pending appeal:
Previous infractions of the same offense
PREVENTIVE SUSPENSION is punitive
Length of service already; hence, if exonerated, the employee
must be reinstated and COMPENSATED for the
period of his suspension
PROCEDURAL VALIDITY
Suspension beyond 30 days ripens to
NOTICE REQUIREMENT dismissal
Mere posting of notice on employees bulletin

board is not sufficient DOCTRINES ON DISMISSAL FOR CAUSE
WITHOUT PROCEDURAL DUE PROCESS
Payment of 1 month salary in lieu of notice is not (PDP)
valid
PRE-WENPHIL DOCTRINE
If based on just causes:
J/A + (-PDP) = ILLEGAL
Notice which apprises the employee of the CAUSE
particular acts or omissions for which his DISMISSAL
dismissal is sought; and
WENPHIL DOCTRINE (FEB 8, 1989)
Subsequent notice which informs the
employee of the employers decision to J/A + (-PDP) = VALID
dismiss him CAUSE
DISMISSAL
If based on authorized causes: +
Employer should give both the worker and INDEMNITY

the DOLE written notices 30 days prior to
termination SERRANO DOCTRINE (JAN 27, 2000)
HEARING J/A + (-PDP) = DISMISSAL

CAUSE THAT IS IN-
Worker may answer allegations within a EFFECTUAL
reasonable period from receipt of the notice of +
dismissal. FULL BACKWAGES FROM
TIME OF DISMISSAL TO
Employer shall afford the worker ample FINALITY OF COURTS
opportunity to be heard and to defend himself DECISION
with his representatives.
In the case of Serrano, the SC held that
Second notice informing the employee of his violation of the notice requirement cannot be
dismissal must be given after due hearing. considered as denial of due process resulting in the
nullity of the employees dismissal for the following
reasons:
PREVENTIVE SUSPENSION
The due process clause of the Constitution
During pendency of the investigation, if the is a limitation on governmental powers and does not
workers continued employment poses a serious apply to the exercise of private power.
LABOR LAW REVIEWER
Any conduct which will affect the mind and body

Notice and hearing are required under the or where continuance of it involves the life or
Due Process Clause before the power of organized health of the employee
society is brought to bear upon the individual.
No comfort room provided by the employer
The employer cannot really be expected to compelling the employees to go outside
be entirely an impartial judge of his own case. employers business premises to heed the call of
nature constitutes unbearable treatment
BURDEN OF PROOF
No gas masks provided by employer although
EMPLOYER has the burden of proving the employees work deals with smoke-producing
lawful cause chemicals amounts to inhuman treatment
DEGREE OF PROOF Commission of a crime or offense by the

employer or his representative against the
SUBSTANTIAL evidence is considered person of the employee or any of the
sufficient. This means more than a scintilla of relevant immediate members of his family; and
evidence; evidence which a reasonable mind might
accept as adequate to support a conclusion. The act of slapping the employee plus the threat
of scratching her face with a pair of scissors
CONSTRUCTIVE DISMISSAL constitute an offense which would justify
employees severing employer-employee
Involuntary resignation resorted to when relationship
continued employment becomes impossible,
unreasonable, or unlikely; when there is a demotion in Other causes analogous to any of the
rank or a diminution in pay; or when a clear foregoing.
discrimination, insensibility or disclaim by an employer
becomes unbearable to an employee. Undue delay in the payment of employees
salaries or wages
An employee is deemed constructively
dismissed where his status is changed from regular to Violation of employment term and condition
casual.
Unsanitary or unhygienic working conditions
6 Month Rule
Floating Status beyond six months under WITHOUT any notice

Art 286 may also amount to constructive dismissal
Amounts to Constructive Dismissal
Indefinite lay-off or suspension
RESIGNATION
Non-acceptance of a returning employee
after exhausting his leave of absence Voluntary act of an employee who finds
himself in a situation where he believes that personal
TERMINATION BY EMPLOYEE reasons cannot be sacrificed in favor of the exigency
of the service, such that he has no other choice but to
Without just cause disassociate himself from his employment.
Written notice to the employer at least 1 month in Once the notice of resignation is accepted
advance by the employer, the employee loses his right to the
job.
Failure to give noticemakes employee liable for
DAMAGES No acceptance is effected by the employer
where the employee was still required to report for
With just causes (SICO) work and to explain his unauthorized absences, or the
employer disregarded the employees previous
Serious insult by the employer or his resignation and still considered the latter its employee.
representative on the honor and person of
the employee TWO KINDS OF RESIGNATION
Implies malice or denotes ill-will or an intent to Voluntary resignation

injure or to offend, or to wound the feelings of
another. Beyond the control of the employer
Inhuman and unbearable treatment Where the employees voluntarily signed the
accorded the employee by the employer or resignation letters apparently prepared by the
his representative company, the same are VALID.
LABOR LAW REVIEWER
Where the employee voluntarily resigned and Reinstatement to former position without
signed the quitclaim after receiving all the loss of seniority rights.
benefits, resignation is VALID and BINDING.
Failures or refusal to reinstate him amounts
Resignation is withdrawable even if the employee to illegal dismissal
has called it irrevocable.
An employee on military duty is entitled to
After its acceptance or approval by the employer, salary (P.D. No. 183)
its withdrawal needs the employers consent.
COMPLETE SEVERANCE TEST
Filing of a certificate of candidacy by an
employee of government-owned-or-controlled Before the employee can file an illegal
corporation constitutes a lawful cause for termination case or money claim, the employer-
terminating employment relationship initiated by employee relationship must be completely severed,
the employee himself, and he is considered not just merely suspended.
resigned by operation of law (Omnibus Election
Code) DEFENSES OF EMPLOYER IN ILLEGAL
TERMINATION DISPUTES
Forced Resignation or Constructive
Dismissal 1st LINE DEFENSES
Burden of Proof (SICO) Complainant is an independent

Contractor (I.C. Defense)
The burden of proving that the questioned
dismissal is for a just or authorized cause and An employer who interns into a contract with a
with due process is upon the employer. contractor to perform work for the employer does
not thereby create an employer-employee
If the ground for quitting is SICO, the burden relationship between him and the employee of
is on the employee because the employer the contractor.
cannot be required to prove SICO;
otherwise, he would incriminate himself. Contracting is legitimate if the following
circumstances concur:
If the ground is transfer, the burden of
proving that the transfer is for valid and The contractor carries on a distinct and
legitimate grounds rests with the employer. independent business and undertakes to
perform the job, work or service on its own
Between a positive allegation and a account and under its own responsibility
negative allegation, the former is preferred. according to its own manner and method,
and FREE FROM THE CONTROL AND
WHEN EMPLOYMENT NOT DIRECTION OF THE PRINCIPAL in all
DEEMED TERMINATED matters connected with the performance of
the work except as to the results thereof.
Temporary Suspension of operation of a business
NOT exceeding 6 months. The contractor has substantial capital or
investment.
Beyond 6 months, employment relationship is deemed
terminated. The agreement assures the contractual
employees entitlement to all labor rights and
If suspension is used as a subterfuge to defeat the benefits.
rights of an employee, employment relationship is not
terminated although it lasted beyond six months. Complainant is an Agent (Agent Defense)
MILITARY OR CIVIC DUTY Complaint is the representative of the employer
Employer-employee relationship not There is absence of control

terminated even if such duty exceeds 6 months
Indicators of Absence of Control
During period of suspension or fulfillment of
military or civic duty employment relationship is Complainant is paid commission;
MERELY SUSPENDED.
Subject to rules and regulations regarding
If the employee wanted to resume his outcome of work
employment, he may communicate his desire to the
employer within 1 month from resumption of the Required to put up a performance bond;
business or relief from military or civic duty.
Not required to observe hours of work;
LABOR LAW REVIEWER
Not required to devote his time exclusively

to the company (de Los Reyes Test) No Successor Employer Defense
Time and effort depend entirely on his will The principle of Piercing the Veil of Corporate
and initiative (Basiao Test) Fiction applies only for the purpose of making
corporate liability a personal liability of the
Not required to account for his time or incorporators as corporate officers; not the
submit record of his activities; reverse.
Required to liquidate and pay his account at INSTRUMENTALITY RULE

the end of each day;
Where one corporation is so organized and
Contract may be terminated at the option of controlled and its affairs are conducted so that it
either party; is in fact a mere instrumentality or adjunct of
another, the fiction of the corporate entity of the
Complainant can employ his own helpers at instrumentality may be disregarded.
his personal expense.
Principle of Absorption
Complainant is a consultant (Consultant
Defense) Only when there is express agreement
If there is bad faith, the employees remain to be
Complaining physician is not a member of the employees of the successor employer
respondent hospitals Specialist Staff, therefore,
not under the employers control. No Employment Contract Defense
Complainant is a Free Lance Operator No substantial evidence to prove that an

(Operator Defense) employment contract exists.
Power of control is absent No written contract defense unavailing

.
Complainant is a Lessee (Boundary System NOTE: If there is a stipulation against Employer-
Defense) Employee Relationship, it must be struck down
as contrary to law.
In the Jardin case (February 23, 2000) the taxi or
jeepney drivers under the boundary system are Unregistered Employer Defense
employees of the taxi or jeepney owners /
operators; so also are the passenger bus drivers Contract-Laborers Defense
and conductors.
Complainant is a Piece-Rater
Complainant is not under the Respondents
Control N.B.: Payment by piece is just a mode of
payment and does not change the essence of the
The right of control is not reserved. relation.
Complainant, by Contrary Stipulation, is not

an Employee (Contrary Stipulation Defense) 2nd LINE DEFENSES
If the contract is one of the CHOICES, there is no

employer-employee relationship. EMPLOYER-EMPLOYEE RELATIONSHIP IS
ADMITTED BUT:
It is one of ADHESION; there is employer-
employee relationship Complainant is a Project Employee
NOTE: Employer-Employee Relationship is a PRINCIPLE OF SUSPENSION OF

question of law and, therefore, it cannot be made the WORK
subject of agreement.
The period during which there is no project
Complainant is the Employee of a job to perform is NON-COMPENSABLE under
contractor the PRINCIPLE OF NO WORK NO PAY.
The circumstances for a job contracting to be If for a particular project, no tenure except:
legitimate must concur in order for the employer (1) if continuously re-hired; (2) member of
to avail of this defense. the work pool
Otherwise, no employer-employee relationship. Members of the work pool if considered

The contractor is the project owners agent. employee of the construction company while
(labor only contracting)
LABOR LAW REVIEWER
in the work pool, are non-project employees performed by the complainant and the usual
or employees for an indefinite period. business or trade of the respondent.
The completion of the project or any phase Complainant is a consultant whose term is
thereof will not mean severance of Co-Terminus with Project
employer-employee relationship.
Indicators that the work is NOT co-terminus
N.B.: If not completed, the complainant with project: (1) portion of contract that says
cannot be terminated even if contract has contingent upon progress accomplishment;
already expired. Therefore, what counts is (2) the contract gives the respondent the
NOT EXPIRATION BUT COMPLETION. right to determine the personnel and their
number as the work progresses.
If the complainant was hired to carry out a
specific project or understanding that is Complainant is not in the Payroll
within the regular or usual business of the
respondent, but which is distinct, separate
and identifiable (DSI) as such, from the THEORY OF ON LEAVE WITHOUT
other undertakings of the company, he is a PAY EMPLOYEES
project employee.
The fact that workers are not regularly
If he was hired to do a job not within the maintained in the payroll and are free to
regular or usual business of the respondent offer their services to other companies,
which is identifiably separate and distinct when there are no projects, cannot defeat
and begins and ends at determined or their status of regularity. The cessation of
determinable times, he is a regular construction activities at the end of every
employee. project is foreseeable suspension of work.
The employment relation is NOT SEVERED.
1 YEAR RULE (Art 280) The employees are strictly speaking not
separated but simply ON LEAVE WITHOUT
It applies only to casual employees and not PAY until they are re-employed. It does not
to project employees especially if: (1) the denote project employment.
gaps between their employment is lengthy;
(2) they had been terminated upon Complainant is a Probationary Employee
completion of each project. (Expiration Defense)
Complainant is under a Temporary CONTRACT OF ADHESION RULE

Employment Contract
If the contract is ambiguous, interpret it in
The completion of the project and the favor of regular employment status.
names of the employees terminated must be
reported to DOLE to make the defense Complainant must be properly apprised of
tenable. the reasonable standards for regularization
and he failed to meet such. Due process
Complainant is a Contractual Employee / must be observed.
Term Employee
PRESCRIPTION
Complainant must not have rendered more
than 1 year of continuous or broken service 4 years Illegal dismissal
with respect to the activity in which he is 3 years Money claims
employed.
RES JUDICATA OR FAILURE TO
NOT YET REGULAR PROSECUTE
REGULAR CONTRACTUALS Non-submission of position papers

DEFENSE
IMPROPER VENUE
A CBA provision stating that employees are
classified first as regular contractual not yet Substantial justice requires that workers who are
entitled to CBA benefits except when they are economically disadvantaged must litigate before
promoted or regularized. This is VOID. the nearest governmental machinery to hear and
resolve the dispute.
Complainant is employed on a PER NEED
Basis REMEDIES / RELIEFS FOR
ILLEGAL DISMISSAL
There must be no reasonable causal
connection between the particular activity The normal consequences of a finding of
illegal dismissal are:
LABOR LAW REVIEWER
It will not serve the prudent purpose as when

Immediate reinstatement and SUPERVENING facts have transpired which
make execution unjust or inequitable.
Payment of full backwages. (Art 279)
There is a resultant STRAINED RELATIONS or
NOTE: Take note that damages and irretrievable estrangements between the
attorneys fees are not mentioned. So the rule to apply employer and the employee where the employee
is- what is not alleged, prayed for, and proven concerned occupies a position of trust and
CANNOT BE AWARDED. On the other hand, even if confidence and it is likely that if reinstated an
not expressly prayed for, backwages and atmosphere of antipathy and antagonism may be
reinstatement can be ordered because their basis is generated as to adversely affect the efficiency
the law. and productivity of the employee.
The two forms of relief are distinct and Reinstatement will not be insisted upon if it
separate, one from the other. Though the grant of is shown that the employee was dismissed for valid
reinstatement commonly carries with it an award of and sufficient reason although the dismissal procedure
backwages, the inappropriateness or non-availability was defective
of one does not carry with it the inappropriateness or
non-availability of the other. There may be
reinstatement without backwages, or backwages REINSTATEMENT IMMEDIATELY
without reinstatement. but either requires a finding of EXECUTORY
illegal dismissal.
Under Art 223, the decision of the Labor
REINSTATEMENT Arbiter reinstating a dismissed employee is
immediately executory even while the case is brought
Restoration to a state from which one has up on appeal.
been removed.
There must be Immediate execution even
Employment for another is not a waiver of without a writ of execution. However, the employer is
the right to reinstatement as it was done in the granted the OPTION to merely reinstate the employee
fulfillment of the workers obligation to minimize in the payroll and is entitled to receive her salary and
damages as a result of his unjustified dismissal. other benefits as if she were working.
If the position previously occupied has NOTE: Under Art 224 (a), a writ of
already been filled up, the proper remedy would be to Execution is needed for a judgment of reinstatement
reinstate the dismissal employee to a after it becomes final and executory.
SUBSTANTIALLY EQUIVALENT POSITION.
However, the fact that the dismissal

employee has already been replaced does not affect CIRCUMSTANCES THAT BAR REINSTATEMENT
his right to reinstatement. The other workers hired are
deemed to have accepted their employment as DISMISSAL FOR CAUSE
replacements with the knowledge the same is subject
to the consequences of the labor dispute. An employer should not be compelled to continue
an employee in the service where a justifiable
An employee who, at the time of his cause for his discharge exists.
dismissal was occupying a temporary or lower position
cannot be ordered reinstated to a permanent or higher ANDONMENT OF RIGHT OR LACHES
position.
An employee entitled to reinstatement may waive
GROUNDS FOR SEPARATION PAY such right by his failure to report for work when
IN LIEU OF REINSTATEMENT he had the opportunity to do so.
Reinstatement can no longer be effected in view If he avails of it within the four year perceptive
of the LONG PASSAGE OF TIME or because of period for reinstatement, the doctrine of laches
the realities of the situation. does not apply.
It would be INIMICAL to the employers interest. RESIGNATION OF THE EMPLOYEE
Reinstatement may no longer be FEASIBLE. Where an employee has resigned, he has no

right whatsoever to any financial assistance,
It will not serve the best INTERESTS of the separation pay and to reinstatement, predicated
parties. on the fact that resignation brings separation
from the service is on a VOLUNTARY basis, that
The company would be PREJUDICED by the is, WITHOUT COERCION OR COMPULSION.
workers continued employment.
PHYSICAL INCAPACITY OF EMPLOYEE
LABOR LAW REVIEWER
An action for illegal dismissal prescribes in 4

The employer may require employee to undergo year. Therefore, it follows that an action for
physical or medical examination, but it showed reinstatement also prescribes in 4 years (Article
NOT be imposed as a pre-condition for 1146, New Civil Code)
reinstatement. If they are found to be ill or
suffering from some disability, they would be CONVICTION FOR A CRIME
entitled to all benefit given to other employees
similarly situated. An employees Conviction for theft is a
supervening cause that rendered unjust and
If the reinstatement no more feasible, proper inequitable a decision mandating reinstatement
remedy is separation pay. with backwages.
EMPLOYEE ACCEPTS RETIREMENT PAY NOT CONDUCIVE TO INDUSTRIAL

HARMONY
Retirement pay has the characteristic of
separation pay, thus the employee loses his right An illegally dismissed managerial employee on
to reinstatement. probationary status cannot be reinstated.
If the employee had reached the mandatory age

of retirement, reinstatement is no longer feasible. WITHOUT LOSS OF SENIORITY RIGHTS
He should be awarded his backwages.
SENIORITY
STRAINED RELATIONS
Length of service of employees in a specified unit
Accord employee backwages and separation for the purposes of determining the order in
pay. This is so especially if the position of which workers will be laid-off, promoted,
employee was one of trust and confidence. transferred, or rehired.
CLOSURE OR CESSATION OF Seniority right acquired through long-time

OPERATION employment is CONTRACTUAL and NOT
Because of: CONSTITUTIONAL.
Business reverses Benefit due a dismissal employer including

seniority rights and other privileges will not be
Acts of the State affected by his absence due to suspension of
employment brought about by the unlawful
TRANSFER OF BUSINESS TO AN dismissal.
INNOCENT TRANSFEREE
BACKWAGES
Unless expressly assumed, labor contracts being
in personam, should not affect a transferee acting BACKWAGES: ILLEGAL TERMINATION
in GOOD FAITH.
Backwages are of a form of relief that
The transferor in MALA FIDE is required to pay restores the income of the employee that was lost by
dismissed employees a reasonable months reason of the unlawful dismissal.
wages to tide them over while looking for suitable
employment NATURE
Applicable only when the transferee is an entirely It is not a private compensation or damage
new corporation with a distinct personality from but in furtherance and effectuation of the public
the integrating firms, and not when it is found to objectives of the Labor Code. It is in the nature of a
be a mere ALTER EGO of the merging firms. command to make public reparation.
ECONOMIC REVERSES FORMULA IN FIXING AMOUNT

OF BACKWAGES:
Reinstatement is not feasible in order to give
employment to a greater number of persons that MERCURY DRUG RULE (1974)
what is reasonably demanded by the actual
requirements of the business. The rule limits backwages of illegally dismissed
employees to an amount equivalent to their
ABOLITION OF POSITION wages for 3 years without qualification and
deduction.
Also known as the 3-year rule

PRESCRIPTION
R.A. No. 6715 (1989)
LABOR LAW REVIEWER
Required the payment of full backwages DETENTION IN PRISON

Mercury Drug precedent ABANDONED
The detention caused the prolonged absence
In the case of Maranaw Hotel vs. CA (November that barred him to earn wages.
6, 1992) the Court initiated the rule that an
illegally dismissed employee may be paid his BACKWAGES OF IRREGULAR
backwages, allowances, and other benefits for WORKERS
the entire period he was out of work, subject to
deduction of any amount which the employee The wages earned by other irregular
may earned during the period of his illegal workers doing the same kind of work who have not
termination. been dismissed would be the basis in determining the
backwages of dismissed irregular workers.
This ruling says FULL BACKWAGES BUT WITH
DEDUCTIONS SEPARATION PAY
Justice Padilla dissented saying backwages with It is the amount that an employee receives
deductions are not full. at the time of his severance from the service and is
designed to provide the employee with the
wherewithal during the period that he is looking for
BUSTAMANTE RULING (November 28, another employment.
1996)
Separation pay is payable to an employee
Backwages awarded to an illegally dismissed whose services are validly terminated for authorized
employee should not, as a general rule, be causes (Article 283 and 284).
diminished or reduced by the earnings derived by
him elsewhere during the period of his illegal An employee dismissed for a just cause is
dismissal. The full backwages without deductions not entitled to separation pay (Article 282).
serve as part of the price or penalty the employer
must pay for illegally dismissing the employee. Exception:
BACKWAGES: TERMINATION Where the employee is dismissed for

WITHOUT DUE PROCESS: causes other than serious misconduct or those
reflecting on his moral character, separation pay may
SERRANO DOCTRINE be allowed as a measure of social justice.
The Serrano ruling upheld the validity of the AMOUNT TO BE AWARDED

employment termination insofar as its reason is
concerned but the employer was at fault in not Installation of Labor-Saving Devices and
observing procedural due process. The penalty would Redundancy:
be full backwages from the time of termination to the
finality of the courts decision. At least 1 month pay or at least 1 month pay for
every year of service, whichever is higher.
Terminations which are illegal for lack of procedural
process are INEFFECTUAL The employer is richer.
CIRCUMSTANCES THAT BAR AWARD Retrenchment to prevent Losses and

OF FULL BACKWAGES Closure or Cessation of Operations Not Due
to Serious Business Losses or Financial
DEATH, PHYSICAL OR MENTAL Reverses
INCAPACITY
1 month pay or at least month pay for every
Under the principle of no-work-no-pay. year of service whichever is higher.
Also true where employee refuses to work
Employer is poorer
BUSINESS REVERSES
Disease
Cessation or closure of business due to
economic reverse does not entitle a separated 1 month salary or month pay for every year of
employee payment of backwages. service, whichever is greater
Entitled to separation pay A fraction of at least 6 months shall be

considered one (1) whole year
ACT OF STATE
NOTE: If closure is due to SEVERE Financial
Such as proclamation of Martial Law Losses, it is still debatable whether or not separation
pay should be given.
LABOR LAW REVIEWER
If it is proven that 10% of the capital investment has The doubt is resolved in employees favor, hence,
been impaired, the employer should be exempt for the despite the nature of offense financial assistance on
payment of separation pay. grounds of compassionate justice may still be given.
The grant of separation pay and at the same time QUITCLAIMS

upholding the validity of QUITCLAIMS and RELEASE
are not at all incongruous. Once an employee resigns and executes a
quitclaim in favor of the employer, he is thereby
Allegation of non-payment of benefit to which an estopped from filing any further money claim.
employee is entitled is a negative allegation. The
BURDEN OF PROVING that such benefit has been It should be voluntarily signed
paid rests upon the EMPLOYER.
But even if voluntary, if it is contrary to public
Where the debtor (employer) introduces some policy, it is deemed INVALID.
evidence of payment, the BURDEN OF GOING
FORWARD with the evidence -- as distinct from the NOTE: Not all waivers and quitclaims are invalid as
general burden of proof is shifted to the creditor against public policy. If the agreement was voluntarily
(EMPLOYEE) who is then under obligation to show entered into and represents a reasonable settlement,
non-payment. it is binding on the parties. It is only when there is
clear proof that the waiver was wangled from an
DAMAGES unsuspecting or gullible person, or the terms are
unconscionable that the law will step in to annul it.
NORMAL DAMAGES are recoverable in
dismissal cases only where the dismissal was Dire necessity is not an acceptable ground for
attended BAD FAITH or FRAUD or Constituted an act annulling the releases.
oppressive to labor, or was done in a manner contrary
to morals, good customs or public policy. PRESCRIPTION
EXEMPLARY DAMAGES in dismissal 4 years- Illegal Dismissal

cases may be awarded only if the dismissal was
effected in a Wanton, oppressive or malevolent 3 years Money Claims
manner.
Art 217 is comprehensive enough to include

all forms of damages arising from employer-
employees relationship. The clause arising from the RIGHT TO SELF-ORGANIZATION
employer-employee relations should apply with equal
force to the claims for damages filed by employees as BASIS OF RIGHT
well as to the claim of an employer, where the basis
for the claim arises from or is necessarily connected Constitution
with the fact of termination. The claim for damages by
the employee is in the nature of a COUNTERCLAIM in Sec. 8, Art III
the illegal dismissal case. Sec. 3, Art XIII
For failure to observe the procedural
Labor Code
requirements, a sanction may be imposed by the court
on the employer to indemnify the dismissed employee.
Art. 243
INDEMNITY FOR HOUSEHELPERS
MEANING OF SELF ORGANIZATION
If the househelper is unjustly dismissed, he
The right to join assist of form LABOR
or she shall be paid the compensation already earned
ORGANIZATIONS for collective bargaining and to
plus that for 15 days by way of indemnity.
engage in lawful concerted activities for the same
purpose or for their mutual aid and protection.
ATTORNEYS FEES
COVERAGE
In employment termination cases, attorneys
fees are not recoverable where there is no sufficient
General Coverage (CIA CHREM)
showing of bad faith on the part of private respondent.
All persons employed in:
FINANCIAL ASSISTANCE
(Justice Outside the Law)
Where there is doubt that dishonesty was

committed, financial assistance may still be awarded
an employee who has rendered long years of service.
Commercial
Industrial
Agricultural
} Enterprises
LABOR LAW REVIEWER
Iglesia ni Kristo members
}
Charitable The right of members of the INK sect not to join
Religious a labor union for being contrary to religious
Educational Institutions beliefs, does not bar the members of that sect
Medical from forming their own (KMCD vs Pura-Ferrer-
Calleja, June 20, 1988)
For collective bargaining
Security guards
For mutual aid and protection
RIGHT OF EMPLOYEES IN THE
PUBLIC SERVICE (Art. 244,LCP)
NOTE: This is whether such institutions or
enterprises are operating for profit or not Employees of GOCCs established under
the corporation code shall have the right to organize
The following are also included in the and to bargain collectively.
coverage of the right to self-organization
(AIRWIS) NOTE:
Ambulant workers Manner of creation test
Intermittent workers If employees of private corporation acquired by

GOCC with original charter, they can organize for
Rural workers purposes of collective bargaining.
Workers with no definite employers Employees of National Government and LGUs

as well as employees of GOCCs with original
Itinerant workers charters shall have the right to form associations
for purposes not contrary to law
Self-employed
Executive Order 180
Specific Coverage (STAGNIS)
The right of government employees to form, join
Supervisory employees or assist employees organizations of their own
choosing is not regarded as existing or available
Supervisory employees shall not be eligible for for purposes of collective bargaining but simply
membership in a labor union of the rank-and-file for the furtherance and protection of their
employees but may form, join or assist separate interests ( Arizala vs CA, Sept. 14, 1990)
labor unions of their own
Excluded from negotiation by government
A union whose membership is a mixture of employees are the terms and conditions of
supervisors and rank-and-file is not and cannot employment that are fixed by law, it being only
become a legitimate labor organization those terms and conditions not otherwise fixed by
law.
A local supervisors union should not be allowed
to affiliate with the national federation of union of concedes to government employees the right
rank-and-file employees where that federation to engage in concerted activities, including the
actively participates in union activity in the right to strike provided such activities are
company and the rank-and-file employees are exercised in accordance with law.
directly under the authority of the supervisory
employees EXCLUSIONS (HEMACEN)
Terminated employees who are contesting High level government employees

their termination
Employees of Coop who are members
Aliens with valid work permit
Managerial employees
Provided that said aliens are nationals of a
country which grants the same or similar rights to AFP and police personnel
Filipino workers( Art. 269, LCP).
Confidential employees
Government employees
Employees of International Organizations with
New employees Immunity
LABOR LAW REVIEWER
Non-employees
NONABRIDGEMENT OF RIGHT TO SELF-
INELIGIBILITY OF MANAGERIAL EMPLOYEES ORGANIZATION (Art 246, LCP)
TO JOIN ANY LABOR ORGANIZATION (Art. 245,
LCP); It shall be unlawful for any person to
restrain, coerce, discriminate against, or unduly
interfere with employees and workers in their exercise
Managerial employees are not eligible to of the right to self-organization.
join, assist or form any labor organization.
TYPES OF MANAGERIAL EMPLOYEES
First-line managers LABOR ORGANIZATIONS
Direct operating employees only; they do not SELECTION OF THE EXCLUSIVE BARGAINING
supervise other managers REPRESENTATIVE (EBR); PROCESS
Called SUPERVISORS RATIONALE OF REGISTRATION
Middle managers Registration makes a labor organization

legitimate in the sense that it is clothed with legal
Direct the activities of other managers and personality to claim the representational and
sometimes also those of operating employees. bargaining rights.
Top Managers Registration is not a limitation to the right of

assembly/association which may be exercised with or
Responsible for the overall management of the without said registration; it is merely a condition sine
organization qua non for the acquisition of legal personality.
NOTE: Look into the functions they perform before EFFECT OF REGISTRATION
determining whether the managerial employee is
excluded or not. The labor organization or workers
association shall be deemed registered and vested
CONFIDENTIAL EMPLOYES with legal personality on the date of issuance of its
certificate of registration. Such legal personality
Confidential employees shall be ineligible to cannot thereafter be subject to collateral attack, but
form, assist or join labor unions. may be questioned only in an independent petition for
cancellation.
ELEMENTS (concurrent/ cumulative)
REGISTRATION REQUIREMENTS
Employee assists/acts in a confidential capacity
For independent registration
A person who formulates, determines and
effectuates management policies in the field of The application for registration of an independent
labor relations union shall be supported by the following
(CAMPRON)
RULES
Constitution and by-laws
Two kinds of information arising from
confidential relationship and when it creates Annual Financial Report ( if in existence for
disqualification more than 1 year)
Access to labor relations information = Minutes of organizational meeting

DISQUALIFIES
Principal Address of Union
Access to business or financial information =
DOES NOT DISQUALIFY Registration Fee
Access to labor relations information is Officers names and addresses

INHERENT in the job = DISQUALIFIES
Names of workers constituting 20% of the
Access is ACCIDENTAL = DOES NOT appropriate bargaining unit.
DISQUALIFY
WHERE to file application
NOTE: Confidentiality is not a matter of official rank; it
is a matter of job content and authority.
LABOR LAW REVIEWER
The application shall be filed with and be acted For Registration of Workers Association
upon by the REGIONAL OFFICE where the
principal office is located. The application for registration of a workers
association shall be supported by:
For the registration of a federation / National
union: Members names and addresses
The application for registration of a federation or Principal office of the applicant

national union shall be supported by:
Minutes of organizational meetings
Annual Financial Report ( if in existence for
more than 1 year) Constitution and by-laws
Minutes of organizational meeting WHERE to file application

The application for registration of a workers
Registration Fee association whose place of operation is confined
to one regional jurisdiction shall be filed directly
Names of workers constituting 20% of the and acted upon by the Regional Office where it
appropriate bargaining unit. operates. Otherwise, the application shall be filed
and acted upon by the Bureau.
Resolution of affiliation of at least 10
locals/chapters or affiliates PROVISIONS COMMON TO THE
REGISTRATION OF LABOR ORGANIZATIONS
Names and addresses of the companies AND WORKERS ASSOCIATION
where the locals/chapters operate and the
list of all the members in each company The application for registration, including all
involved. the accompanying documents, shall be verified under
oath by its secretary or treasurer, as the case may be,
NOTE: The locals/chapters or affiliates must be and attested to by its President
a duly recognized or certified bargaining
representative in the establishment where it After a labor organization had filed the
seeks to operate necessary papers and documents for registration, it
becomes mandatory for the Bureau or Regional Office
WHERE to file application as the case maybe, to check if the registration
requirements have been complied with. The basis for
Application shall be filed with the Bureau. Where the issuance of a certificate of recognition should be
the application is filed with the Regional Office, compliance with the requirements of recognition.
the same shall be immediately forwarded to the
Bureau within 48 hours from filing thereof. For chapter registration
For registration of an industry or trade union A duly registered federation or national union
center may directly create a local/chapter by submitting
to the Regional Office or to the Bureau two (2)
The application for registration of an industry or copies of the following:
trade union shall be supported by the following:
Charter certificate issued by the federation
List of its member organizations and their or national union.
respective presidents
Names of the local/chapters officers and
Resolution of membership of each member their addresses
organization
Principal office of the local/chapter
Name and principal address of the applicant
Constitution and by-laws of the local/chapter
Officers names and their addresses
All the foregoing supporting requirements shall
Minutes of the organizational meeting be certified under oath by the secretary or the
treasurer of the local/chapter and attested to by
Constitution and by-laws its president.
WHERE to file application NOTE: A duly registered workers association

may likewise charter any of its branches, subject
Application shall be filed with the Bureau. Where to the filing of the documents prescribed for
the application is filed with the Regional Office, charter registration
the same shall be forwarded to the Bureau within
48 hours from filing thereof.
LABOR LAW REVIEWER
A duly constituted local/chapter shall acquire EFFECT of disaffiliation on existing CBA

legal personality from the date of filing of the
complete documents enumerated therein. CBA continues to bind the members of the
new or disaffiliated and independent union up to the
CBAs expiration date
SUBSTITUTIONARY DOCTRINE
AFFILIATION OF AN INDEPENDENT Provides that the employees cannot revoke

UNION the validly executed CBA with their employer by the
simple expedient of changing their bargaining agent.
An independent union shall be considered
an affiliate of a federation or national or industry union
upon filing by the latter to the Regional Office or RIGHTS OF LEGITIMATE LABOR
Bureau two (2) copies each of: ORGANIZATIONS
Verified resolution of affiliation, ratified by a (Art. 242, LCP)

majority of the members of the independent
union; and Miscellaneous Rights (USER)
A resolution of acceptance by the federation or To undertake related activities like

national or industry union. cooperative, housing, welfare, etc.
NOTE: The relationship between a local or To sue and be sued

a chapter and the labor federation is generally
understood to be that of agency, where the local is the To exclusively represent all the employees in
principal and the federation is the agent. an ACBU for purposes of collective
bargaining.
Affiliation by a duly registered local union
with a national union or federation does not make the To represent its union members
local union lose its legal personality.
NOTE: (on the right of union to represent its
An independent union has legal personality members)
of its own by virtue of its own registration. It remains
independent whether or not it affiliates with a Money claims due to laborers cannot be the
federation or not. object of settlement or compromise effected by a
union or counsel without the specific consent of
DISAFFILIATION OF A LOCAL UNION each laborer concerned.
Disaffiliation of employees from their mother Financial Rights (FOE)

union and their formation to a new union does not
terminate their status as employees of the corporation, To be furnished by management with annual
as the employees and members of the local union did financial statements that are audited
not form a new union but merely exercised their right
to register their local union. A local union when so To own properties for union use
warranted is FREE to disaffiliate from its mother union.
To be exempt from tax, duties, assessment
WHEN to disaffiliate on income, properties, grants, endowments,
gifts, etc. which are actually, directly and
Generally, a labor union may disaffiliate from exclusively used by unions.
the mother union to form a local or independent union
ONLY during the 60-day freedom period immediately RIGHT to be furnished with financial
preceding the expiration of the CBA statements:
But even before the onset of the freedom FOUR points in time when the union may ask in
period, disaffiliation may still be carried out, but such writing for these statements:
disaffiliation must be effected by a majority of the
members of the bargaining unit. After the union has been recognized by the
employer as sole bargaining representative
EFFECT of disaffiliation on legal status of the employees in the bargaining unit; or
When a union which is not independently

registered disaffiliates from the federation it is not After the union is certified by DOLE as such
entitled to the rights and privileges granted to a sole bargaining representative; or
legitimate labor organization.
LABOR LAW REVIEWER
Within the last 60 days of the life of a CBA; No special assessments unless authorized
or by general resolution
During the collective bargaining negotiation. No check off unless authorized by individual
written resolution
Use of funds only if authorized by
constitution and by-laws or general
resolution
Rights of Union Members
Right to Information
(Art. 241, LCP)
information on CBL, CBA, and their rights
Political Rights (REN2) and obligations
Right against knowing admission of NOTE: The Regional Director of DOLE, not the labor
subversives arbiter has jurisdiction over check-off disputes
Election of officers directly, by secret ballot CANCELLATION OF REGISTRATION

every 5 years
Summary of the grounds for cancellation of
No imposition of other qualification for registration of a labor organization or a workers
positions except membership in good association
standing
Failure to comply with any of the requirements
No election or appointment of persons prescribed under Articles 234,237, and 238 of
convicted of crimes involving moral LCP
turpitude.
Violation of any of the provisions of Articles 239
Deliberative Right of LCP
Determination by secret ballot of all major Commission of any of the acts enumerated under
policies Art. 241 of the code; provided, that no petition for
cancellation based on this ground may be
Rights over Money Matters (STAR4N5U) granted unless supported by at least 30% of all
the members of the respondent labor
Salaries of officers should be authorized by organization or workers association.
the constitution and by-laws or general
membership resolution Grounds for cancellation of Union
Registration under Art. 239, LCP
True and correct accounting by treasurer:
(1) at least once a year within 30 days after (F4AM2ECA)
the close of its fiscal year; (2) at such other
times as may be required by a resolution of Failure to submit required documents per Art 239
the majority of the members; (3) upon (a) and (c)
vacating his office
Failure to submit annual financial report
Accounts (Books of) shall be open to
inspection during office hours Failure to submit list of members
Reports on all financial transactions, full and Failure to comply with Art 237 and 238
detailed
Records on all income showing the sources

Acting as labor contractor
Receipts of all payments signed by the
Misrepresentation in the adoption/ratification of
collector
CBL
Records of all expenditures showing payee
and purpose Misrepresentation in the election of officers
No arbitrary, excessive initiation fee, fine Entering into a sweetheart CBA
No collection of fees unless authorized by Checking off of special assessment without

constitution and by-laws individual authorization
No additional compensation for officers Asking for negotiation or attorneys fees
LABOR LAW REVIEWER
VENUE of action
Any LLO supported by the written consent
petitioner is a local/chapter, affiliate or a workers of at least 25% of all the employees in ABU
association with operations limited to one region
= REGIONAL OFFICE Any employer, when requested to bargain
petitioner is a federation, national or industry collectively
unions, trade union centers, or workers
association operating in more than one regional UNORGANIZED establishment
jurisdiction = BUREAU
Any LLO
WHO may file
Any employer, when requested to bargain
Any party-in-interest may commence a collectively
petition for cancellation of registration, except in
actions involving violations of Art 241, LCP which can WHEN to file
be commenced only by members of the respondent
labor organization or workers association ORGANIZED establishment
NOTE: The petition shall be under oath and shall NO CBA, any time
state clearly and concisely the facts and grounds
relied upon, accompanied by proof of service that a During the 60-day freedom period of a duly
copy thereof has been furnished by the respondent. registered CBA
EFFECT of Cancellation of registration of an UNORGANIZED establishment

independent union
Anytime
The union is no longer a legitimate labor
organization. The juridical personality as well as its WHERE to file
statutory rights and privileges are suspended, but the
cancellation does not dissolve the union May be filed with the MED-ARBITER
through the Regional Office which has over the
REVOCATION of legal personality of principal office of the employer or where the
local/chapter bargaining unit is principally situated
A federation, national union or workers FORM of petition

association may revoke the charter issued to a
local/chapter or branch by serving on the latter a Shall be in writing and under oath
verified notice of revocation, copy furnished the
Bureau on the ground of disloyalty or such other CONTENTS of petition
grounds as may be specified in the CBL of the
federation, national union or workers association. The When filed by an LLO
revocation shall divest the local/chapter of its legal
personality upon receipt of the notice by the Bureau, Name of petitioner, its address, and
UNLESS in the meantime the local/chapter has affiliation if appropriate, the date of its
acquired independent registration. registration and number of its certificate of
registration if petitioner is a federation,
EFFECT of cancellation of registration of national union or independent union, or the
federation or national union on locals/ chapters date it was reported to the Department if it is
a local/chapter
The cancellation of registration of a
federation or national union shall operate to divest its Name, address and nature of the employers
locals/chapters of their status as legitimate labor business
organizations, UNLESS the locals/chapters are
covered by a duly registered CBA. In the latter case, Description of the bargaining unit
the locals/chapters shall be allowed to register as
independent unions, failing which they shall lose their Approximate number of employees in the
legitimate status upon the expiration of the CBA. bargaining unit.
The names and addresses of other LLO in

the bargaining unit
MODE OF SELECTION AND PROCEDURE
A statement indicating any of the following
CERTIFICATION ELECTION circumstances
WHO may file: ~ That the bargaining unit is unorganized

or that there is no registered CBA
ORGANIZED establishment
LABOR LAW REVIEWER
covering the employees in the

bargaining unit NOTE: In an unorganized establishment, the order of
the Med-Arbiter resolving the motion shall not be
~ If there exists a duly registered CBA, subject to reconsideration or appeal
that the petition is filed within the 60-
day freedom period of such agreement
~ If another union had been previously

certified in a valid certification, consent
or run-off election or voluntarily
recognized, that the petition is filed
outside the 1 year period from such
certification or run-off election and no MOTION TO DISMISS
appeal is pending thereon, or from the
time the fact of recognition was entered Grounds: (Election Bars)
into the records of such union.
Petitioner is not listed by the Regional
In an organized establishment, the signature Office or Bureau in its registry of LLOs, or
of at least 25% of all employees in the ABU that its legal personality has been revoked
which shall be attached to the petition at the or cancelled with finality
time of its filing; and
CONTRACT BAR
Other relevant facts
Petition was filed before or after the freedom
WHEN filed by an employer period of a duly registered CBA; provided that the
60-day freedom period based on the original CBA
Name, address and general nature of the shall not be affected by any amendment,
employers business extension or renewal of the CBA.
Names and addresses of the legitimate TWELVE-MONTH BAR

labor organizations
Petition was filed within 1 year from a valid
Approximate number of employees in the certification, consent or run-off election and no
ABU appeal on the results is pending thereon or from
recording of the fact of voluntary recognition with
Description of the bargaining unit the Regional Office.
Other relevant facts NEGOTIATION BAR
MOTION for intervention A duly recognized or certified union had

commenced negotiations with the employer in
Form and contents shall be the same as that accordance with Art 250, LCP within the 1 year
of a petition for CE period referred to in Sec 3, Rule XI, IR Bk V, or
WHO may file DEADLOCK BAR
ORGANIZED establishment There exists a bargaining deadlock which had

been submitted to conciliation or arbitration or
Any LLO other than the incumbent had become the subject of a valid notice of strike
or lockout to which an incumbent or certified
The incumbent bargaining agent (FORCED bargaining agent is a party
INTERVENOR)
In case of an organized establishment, failure to
UNORGANIZED establishment submit the 25% support requirement upon the
filing of the petition.
-any LLO
Lack of interest or withdrawal on the part of the
WHEN to file petitioner; provided, that where a motion for
intervention has been filed during the freedom
ORGANIZED establishment period, said motion shall be deemed and
disposed of as an independent petition for CE if it
During the freedom period of the CBA complies with all the requirements for the filing of
a petition for CE as prescribed in Sec 4, IR Bk V,
UNORGANIZED establishment Rule XI
Anytime prior to the finality of the decision MOTION FOR INHIBITION

calling for CE
LABOR LAW REVIEWER
No motion for inhibition of the Med-Arbiter shall WHO are qualified to vote
be entertained from any part UNLESS the same is verified
and based on specific grounds or circumstances directly All employees who are members of the
related to or arising from the dispute under consideration. appropriate bargaining unit sought to be represented
by the petitioner at the time of the certification or
PURPOSE of hearing consent election shall be qualified to vote.
Arriving at a stipulation of facts; NOTE: Contested voters shall be allowed to vote,

however, their votes shall be segregated and sealed in
Determining the parties to the election; individual envelopes
Getting the parties to agree to a consent election; A DISMISSED EMPLOYEE whose dismissal is
being contested in a pending case shall be allowed to
Asking clarificatory questions; and vote
PROBATIONARY employees have substantial
Defining or limiting the issues interest in the selection of the bargaining
representative, hence they are allowed to vote
ACTION ON THE PETITION INK believers may vote.
A decision granting the petition shall state POSTING of Notices

the following:
At least 5 working days prior
Name of the employer or the establishment
2 conspicuous places in the company premises
Description of the bargaining unit
Date, time, unions, description of bargaining units
Names of the contending unions which shall
appear in the following order: Eligible voters
Petitioner union or, in case of two or more NOTE: May be waived upon agreement of
petitioners, in the order in which the parties
petitions were filed
CONDUCT OF ELECTION
Forced intervenor; and
Election shall be set during a regular
Other intervenors business day of the company UNLESS otherwise
agreed upon by the parties. It shall be held within
NOTE: Med-Arbiter shall dismiss the petition based company premises UNLESS circumstances otherwise
on any of the grounds for Motion to Dismiss/Election require, as determined by the election officer
Bars
ON-THE-SPOT Questions
NOTE: In a petition filed by a LLO involving an
unorganized establishment, the Med-Arbiter shall The election officer may rule on any
automatically order the conduct of CE after question relating to and raised during the conduct of
determining that the petition has complied with all the election. In no case, however, shall the election officer
requirements and that none of the grounds for rule on any of the grounds for challenge of votes.
dismissal
CHALLENGE of votes
PRE-ELECTION CONFERENCE
An authorized representative of any of the
The pre-election conference shall set the contending parties may challenge a vote before it is
mechanics for the election and shall determine, deposited in the ballot box ONLY on any of the
among others, the following: following grounds:
List of qualified voters; There is no employer-employee relationship

between the voter and the company; and
The date, time and place of the election;
The voter is not a member of the ABU which
Names of watchers and representatives; petitioner seeks to represent.
The number and location of polling places or When a vote is properly challenged, the
booths; and election officer shall place the ballot in an envelope
which shall be sealed in the presence of the voter and
the representative of the parties.
The number of ballots to be prepared.
PROTEST
LABOR LAW REVIEWER
RATIONALE
Any party-in-interest may file a protest
based on the conduct or mechanics of the election. The acquisition of rights by any union or
labor organization, particularly on the right to file a
Protests not so raised are deemed waived. petition for CE, first and foremost, depends on
Protesting party must formalize its protest with the whether or not the labor organization has attained the
Med-Arbiter, with specific grounds, arguments and status as a legitimate labor organization
evidence therefore, within 5 days after the close of the
proceedings. Pendency of a formal charge of company
domination suspends the petition for CE
PROCLAMATION and certification by Election
Officer NOTE: The motion to suspend/dismiss the CE can
only be filed by the union which made the charge of
Upon completion of the canvass and there ULP. Only formal charge of company domination
being a valid election, the election officer shall (ULP) can serve as a bar to stop CE
proclaim and certify as winner the union which
obtained a majority of the valid votes cast under any RUN-OFF ELECTION
of the following conditions:
REQUISITES of a valid run-off election
No protest has been filed or, even if one is filed,
the same was not perfected within the 5- day A valid election took place because majority of
period for perfection of the protest; the CBU members voted
No challenge or eligibility issue was raised or, The election presented at least three choices
even if one was raised, the resolution of the
same will not materially change the result. Not one of the choices obtained the majority of
the valid votes
PROCLAMATION and certification by Med-
Arbiter The total votes of the unions is al least 50% of
the votes cast
When a protest has been perfected or any
challenged or eligibility issue has been raised which, if There is no unresolved challenge of voter or
resolved, can materially change the result, only the election protest
Med-Arbiter can proclaim and certify the winner
WHO participates
APPEAL AS TO RESULT OF ELECTION
Between the labor unions receiving the two
The decision of the Med-Arbiter may be highest numbers of votes
appealed to the Sec. Of Labor ONLY on the grounds
of violation of Sec. 9, Rule XII, IR Bk V regarding CONSENT ELECTION
challenging of votes or of serious errors of fact or law
in the resolution of the protest. In hearing a petition for a CE, the Med-
Arbiter may persuade the contending unions to agree
REQUIRED vote to a consent election. If the unions do agree, the Med-
Arbiter shall enter in the minutes of the hearing the
The union which obtains a majority of the fact of the agreement and then cause the immediate
valid votes cast shall be certified as the sole and scheduling of the pre-election conference
exclusive bargaining agent of all the workers in the
appropriate bargaining unit NOTE: The holding of a valid consent election, upon
the intercession of the med-arbiter, bars the holding of
FAILURE of election a CE for one year
The total number of valid votes cast in a Where no petition for a CE had been filed
certification or consent election is LESS than the but the parties themselves have agreed to hold
majority of all the eligible employees in the bargaining consent election, the results of the election will NOT
unit. bar another CE, UNLESS the winning union had been
extended voluntary recognition by the employer
NOTE: Failure of election shall not bar the filing of a
petition for the immediate holding of another
certification or consent election. CONSENT CERTIFICATION
Election Election
PREJUDICIAL question in CE
The pendency of a case seeking the

cancellation of registration of the union petitioning for
a CE suspends hearing of the petition for CE.
LABOR LAW REVIEWER
It is aimed at determining DUTY TO BARGAIN

It is an agreed one, its
the sole and exclusive
purpose being merely to
bargaining agent of all
determine the issue of
the employees in the Concept of the Duty to
majority representation of all
ABU for the purpose of Bargain Collectively
the workers in the ABU
collective bargaining
CB is the performance of the mutual obligation of the
employer and the sole bargaining representative to
NOTE: Consent election is a separate and distinct meet promptly, expeditiously, & in good faith & agree
process and has nothing to do with the import and on Wages, Hours of Work & Other terms & conditions
effect of a certification election. Neither does it shorten of employment (WHO).
the terms of an existing CBA nor entitle the
participants thereof to immediately renegotiate an PHASES of Collective Bargaining
existing CBA although it does not preclude the
workers from exercising their right to choose their sole Legislative Phase
and exclusive bargaining representative after the
expiration of the 60-day freedom period. Negotiation and perfection of CBA
VOLUNTARY RECOGNITION
Executive Phase
REQUISITES
CBA administration
Submission to DOLE of a joint statement ( by the
employer and union president) attesting to the Judicial Phase
voluntary recognition
Application & interpretation
The joint- statement must be published for 15
consecutive days in 2 conspicuous places in the Two situations when the duty
establishment or CBU where the union seeks to to bargain exists
operate
When there is NO CBA (Art. 252)
The joint-statement should state the
approximate number of employees in the PURPOSE of the meeting
CBU, accompanied by the names and
signatures of at least a majority of the ~ Negotiate an agreement over
members of the CBU supporting the WHO including proposals for
voluntary recognition; adjusting grievances or questions
arising under such agreement;
The joint-statement should state that there and
are no other LLOs operating within the CBU
~ To execute a CBA
The joint-statement must be submitted to
the Regional Office within 30 days from date LIMITATION
of recognition
~ it does not compel any party
EFFECT of voluntary recognition
~ To make an agreement, or
From the time of recording, the union shall
enjoy the rights, privileges and obligations of an ~ To make concession
exclusive bargaining representative
NOTE: Voluntary acknowledgement can ONLY take When there is CBA (Art. 253)
place when there is no dispute as to what union
counts in its members a majority of the employees. PURPOSE of the meeting
Voluntary recognition is possible only in an ~ Negotiate an agreement over

unorganized establishment. In an organized setting, WHO including proposals for
the employer cannot voluntarily recognize any new adjusting grievances or questions
union because Art. 256, LCP requires the employer to arising under such agreement;
continue recognizing and dealing with the incumbent and
union if it has not been properly replaced by another
union. ~ To execute a CBA
~ the old CBA, unless a new CBA is

forged, must be respected &
allowed to have force & effect
LABOR LAW REVIEWER
Union seeks recognition of inappropriately

large CBU;
NOTE: Within 60 days before the CBA expires
(freedom period), either party may notify the other in Union seeks to represent non-members of
writing, that it desires to modify or terminate the CBU
agreement.
Rank-&-file unit includes supervisors
PROCEDURES
Demand for recognition & bargaining within
Jurisdictional preconditions certification year where the choice is no
union
Existence of certified EBR
Unlawful bargaining demands
Possession of majority representative
status; Evasion of Mandatory Subjects of
Bargaining
Proof of majority representative status;
MANDATORY SUBJECTS
Demand of Bargain collectively
Wages & Hours of Work
Procedure proper (Art. 250)
Other terms & conditions
Written notice upon the other party w/
statement of proposal Other modes of compensation
Reply not later than 10 days Work shifts
Conference not later than 10 days from Vacation & holidays

notice in case of differences
Bonuses
NCMB, if differences is not settled
Pensions & retirement plans
Prohibition against commission of acts that
impede or disrupt proceedings Seniority
Amicable settlement of disputes by NCMB Transfers
UNFAIR LABOR PRACTICES RELATED TO Lay-offs

DUTY TO BARGAIN COLLECTIVELY
Workload
Refusal or failure to meet and convene
Work rules & regulations
The duty to meet and convene includes:
Rent of company houses
To bargain w/ the certified EBR;
Union security agreements
To meet & confer w/ the EBR & to recognize
the EBR as representative of all the An employer does not commit ULP by insisting to
employees in the CBU, even if not members the point of a bargaining impasse, on the
of the CBR inclusion in a contract of a management
prerogative clause, or a union discipline clause,
To negotiate grievances even if not covered or a no strike clause
by the CBA
NON-MANDATORY subjects
ACTS not deemed refusal to bargain
An employer cannot insist, to the point of creating
Adamant bargaining position in good faith a bargaining impasse, on the scope of the
Refusal to bargain over demands for statutory bargaining subjects, even if he acts in
commission of ULP good faith.
Refusal to bargain during period of illegal
strike
DEADLOCK OR IMPASSE
There is NO VIOLATION of duty to bargain
where: A bargaining impasse over an issue exists
where good faith bargaining on the part of the parties
No request for bargaining; has failed to resolve the issue & there are no definite
plans for further efforts to break the deadlocks.
LABOR LAW REVIEWER
DUTY to bargain when there is deadlock CBA is also a means of ensuring workers
are entitled to participate in decision-making.
Deadlock does not mean the end of
bargaining. It signals rather the need to continue the Contents of CBA
bargaining w/ the assistance of a third party as
conciliator or arbitrator whose first aim is to get the Enumeration or reservation of management
parties back to the negotiating table & help them craft rights
a win-win solution.
Union recognition & security
STRIKE or Lockout in case of Deadlock
Wage & fringe benefits & their administration
Art. 263 recognizes bargaining deadlock as
a valid reason to declare a strike or lockout. Physical working conditions
Bad Faith in Bargaining Selected personnel management & plant

operation practices
INSTANCES of Bad Faith
Delay of negotiations Grievance & arbitration
Duration of contract
Imposing time limit on negotiations
Terms of CBA
SURFACE Bargaining
Economic & Non-economic Life : 3 years
A sophisticated pretense in the form of
apparent bargaining. Political Life (representation aspect : identity &
majority status of the union that negotiated the
It does not satisfy the statutory duty to CBA as EBR of the bargaining unit concerned): 5
bargain YEARS
BOULWARISM Automatic Retroaction: Any agreement entered

within 6 months from the date of expiry of the
Bargaining in bad faith in take it or leave it term shall retroact to the date immediately
bargaining following such date.
NOTE: Good faith or bad faith is an inference to be If the agreement is beyond 6 months, there would
drawn from the facts & in largely a matter for the be an automatic retroaction. The date of the
NLRBs expertise. contract will be left to the parties.
A fair criterion of good faith in collective Automatic renewal: an existing CBA is

bargaining requires that the parties involved deal w/ automatically renewed until the parties reached
each other w/ open & fair mind & sincerely endeavor to an agreement.
to overcome obstacles or difficulties existing between
them to the end that employment relations may be Ratification
established & obstruction to the free flow of commerce
prevented. The agreement negotiated by the
employees bargaining agent should be ratified or
Grossly violating the economic provisions of approved by the majority of all workers in the majority
CBA of all workers in the bargaining unit, not just the
members of the bargaining union.
Violation occurs during the implementation stage.
It creates a further obligation on the parties to Ratification AND its procedure are
adhere faithfully to the contract. mandatory
WHEN ratification not needed
COLLECTIVE BARGAINING AGREEMENT (CBA) Ratification of the CBA by the employees in

the bargaining unit is not needed when the CBA is a
Concept of CBA product of an arbitral award by appropriate
government authority or by a voluntary arbitrator.
CBA refers to a contract executed upon
request of either the employees or the EBR of the Registration
employees incorporating the agreement reached after
negotiations w/ respect to wages, hours of work & all CBA, having been properly ratified, should
other terms & conditions of employment, including be registered w/ the DOLE Regional Office that has
proposals for adjusting grievances or questions under jurisdiction over the establishment.
such agreement.
LABOR LAW REVIEWER
Remedial
Consisting of affirmative relief (reinstatement,

UNFAIR LABOR PRACTICES damages, attorneys fees)
CONCEPT Penal
ULP violate the constitutional right of Fine or imprisonment, or both

workers and employees to self-organization, are
inimical to the legitimate interests of both labor and REMEDIES IN ULP CASES
management, including their right to bargain
collectively and otherwise deal w/ each other in an Cease & desist order
atmosphere of freedom & mutual respect, disrupt
industrial peace & hinder the promotion (Art. 247). Affirmative order : e.g. to reinstate fully a
discharged employee
Order to Bargain
Disestablishment: order directing the employer to

withdraw all recognition from the dominated labor
union & to disestablish the same
TWO ASPECTS OF ULP
ELEMENTS NEEDED TO COMMIT ULP
Civil Aspect
Existence of Employer employee relationship
Includes claims for actual, moral exemplary
& other forms of damages, attorneys fees & Act done is expressly defined in the code as ULP
other affirmative relief (Arts. 248 & 249)
Under the jurisdiction of the Labor Arbiters,

who are bound to resolve the civil aspect
w/in 30 days from the time they are
UNFAIR LABOR PRACTICES
submitted for decision.
OF EMPLOYERS (Art. 248)
Recovery of civil liability in the administrative
General Rule
proceedings shall bar recover under the civil
code
It is the prerogative of the company to
promote, transfer or even demote its employees to
other position when the interest of the company
Criminal Aspect demands it.
No criminal prosecution may be instituted EXCEPTION
w/o a final judgment first obtained in the
administrative proceeding finding that a ULP When there is a clear interference by the
was committed employer of the employees right to self-
organization
Prescriptive period : 1 year from accrual of
ULP The grant of profit sharing benefits to non-
union members is not ULP, it is within the
During the pendency of the administrative prerogative of the management
proceeding, the running of the prescriptive
period for the criminal aspect of ULP is FORCED vacation leave w/o pay in view of
interrupted the economic crisis is not ULP
The final judgment in the administrative An employer does not commit an ULP by
proceedings shall not be binding in the discharging employees who engage in a
criminal prosecution nor considered as an slowdown. SLOWDOWN occurs when
evidence of guilt, it is a mere proof of employees continue working on their own
compliance w/ procedural requirements terms & rejecting the standards desired by
the employer
RELIEF AVAILABLE
First ULP : Interference
Preventive
To interfere w/, restrain, or coerce employees in
Through a cease & desist order to stop a party their exercise of the right to self-organization
from engaging further in ULP acts.
LABOR LAW REVIEWER
FORMS of Interference
Persistent interrogation of employees to CONTENTS of the contract

elicit information as to what had happened
at union meetings & the identity of the active A representation by the employee that he is
union employees not a member of a labor union;
Outright & unconcealed intimidation A promise by the employee not to join a

Espionage & surveillance : spying on labor union
employees
A promise by the employee that, upon
Economic inducements; joining a labor union, he will quit his
employment
A violation results from an employers
announcement of benefits prior to a Third ULP : Contracting Out
representation election, where it is intended
to induced the employee to vote against the To control out services or functions being
union; performed by union members when such will
interfere with, restrain or coerce employees in the
The conferral of employee benefits for the exercise of their right to self-organization
employees to vote against the union while a
representation election is pending RUNAWAY SHOP: (ULP)
TOTALITY of Conduct Doctrine An industrial plant moved by its owners from one
location to another to escape union regulation or
The culpability of employers remarks state laws, but the term is also used to describe a
were to be evaluated not only on the basis of plant removed to a new location in order to
their implications, but against the background of discriminate against employees at the old plant
& in conjunction w/ collateral circumstances because of their union activities
DOCTRINE of successor employer Fourth ULP : Company domination of

Union
General Rule
To initiate, dominate, assist or otherwise interfere
Labor contractors are in personam, w/ the formation or administration of any labor
hence, doctrine of successor employer, in cases organization, including the giving of financial or
of closure & sale to another, is not applicable other support to it or its organizers or supporters.
EXCEPTIONS FORMS
If there is a written agreement between the Initiation of company Union Idea:

employer and the employees to the effect
that successor employer shall be held liable outright formation by the employer or his
for previous employers liabilities; representatives
Piercing the corporate veil employee formation on outright demand or

influence by the employer;
LOCKOUTS / CLOSURE AMOUNTING TO
ULP managerially motivated formation by
employees
A lockout, actual or threatened, as a
means of dissuading the employees from Financial Support to the Union
exercising their rights is clearly ULP
employer defrays the union expenses or
Second ULP : Yellow Dog contract pays the attorney who drafted the CBL of
the union
To require as a condition of employment that a
person or an employee shall not join a labor Employers encouragement & assistance
organization or shall withdraw from one to which
he belongs immediately granting the union exclusive
recognition as a bargaining agent without
determining whether the union represents
YELLOW DOG CONTRACT - A promise the majority of employees
exacted from workers as a condition of
employment that they are not to belong to, or Supervisory assistance
attempt to foster, a union during their period of
employment
LABOR LAW REVIEWER
soliciting membership, permitting union the union, but all workers hired thereafter
activities during working time or coercing must join
employees to join the union by threats of
dismissal or demotion Maintenance of membership shop
Fifth ULP: Discrimination for or against No employee is compelled to join the union,
unionism but all present or future members must, as a
condition of employment, remain in good
To discriminate in regard to wages, hours of standing in the union
work, & other terms & conditions of employment
in order to encourage or discourage membership Exclusive bargaining shop
in any labor organization
The union is recognized as the exclusive
DISCRIMINATION by blacklisting bargaining agent for all employees whether
union members or not
A BLACKLIST is a list of persons marked out for
special avoidance, antagonism or enmity on the Bargaining for member only
part of those who prepare the list, or those
among whom it is intended to circulate Union is recognized as the bargaining agent
only for its own members
TEST of Discrimination
It is necessary that the underlying reason for the Agency shop agreement
discharge be established
An agreement whereby employees must
CONSTRUCTIVE Discharge either join the union or pay to the union as
exclusive bargaining agent a sum equal to
Where an employer prohibits employees from that paid by the members
exercising their rights under the ACT, on pain of
discharge, and the employee quits as a result of NOTE: The above variations are opposite of
the prohibition, a constructive discharge occurs, OPEN SHOP, an arrangement which does not
w/c may be remedied in a ULP proceeding. require union membership as a good condition
of employment.
VALID Discrimination
VALIDITY of closed-shop agreement
Where Management and Union enters into a CBA
containing union security clause A closed-shop agreement is one
whereby an employer binds himself to hire only
members of the contracting union who must
Union security continue to remain members in good standing to
keep their jobs. It is the most prized of unionism.
Union security is a generic term which is Another reason for enforcing the closed-shop
applied to & comprehends closed shop, union agreement is the principle of sanctity or
shop, maintenance of membership or any other inviolability of contracts guaranteed by the
form of agreement which imposes upon constitution.
employees the obligation to acquire or retain
union membership as a condition affecting
employment.
ADVANTAGES of closed-shop
KINDS of Union Security agreement
Agreements:
Increases the strength & bargaining power
Closed shop of labor organizations
Only union members can be hired & workers
must remain as union members to retain Prevents non-union workers from sharing in
employment. the benefits of the unions activities without
also sharing its obligations
Union shop
Prevents the weakening of labor
Non-members may be hired, but to retain organizations by discrimination against
employment must become union members union members
after a certain period.
Eliminates the lowering of standards
Modified Union shop caused by competition with non-union
workers
Employees who are not union members at
the time of signing the contract need not join
LABOR LAW REVIEWER
Enables labor organizations effectively to It shall be ULP for an employer to dismiss or

enforce collective agreements discriminate against an employee for having filed
charges or for having given or being about to give
Creates harmonious relations between the testimony under said Act.
employer & the employee
DISADVANTAGES of closed-shop Seventh ULP : Violation of the Duty

agreement Bargain
Results in monopolistic domination of To violate the duty to bargain collectively as

employment by labor organization prescribed by the code
Interferes with the freedom of contract &

personal liberty of the individual worker Eighth ULP : Paid negotiation
Compels employers to discharge all non- To pay negotiation or attorneys fees to the union
union workers regardless of efficiency, or its officers or agents as a part of the settlement
length of service, etc. of any issue in collective bargaining or any other
dispute
Facilitates the use of labor organizations by
unscrupulous union leaders for the purpose
of extortion, restrain of trade, etc.
Denies to non-union workers equal

opportunity for employment Ninth ULP : Violation of the CBA
Enables union to charge exorbitant dues & To violate a collective bargaining agreement
initiation fees
VIOLATION must be gross in order to constitute as
CLOSED-SHOP shall not be applicable to: ULP
Any employee who at the time the close

shop agreement takes effect is a bona fide UNFAIR LABOR PRACTICE
member of religious organization which OF LABOR ORGANIZATIONS (Art. 249)
prohibits its members from joining union on
religious grounds. First ULP : Restraint / Coercion
Employees already in the service & already To restrain or coerce employees in the exercise
members of a labor union or unions other of their right to self-organization. However, a
than the majority union at the time the labor organization shall have all the right to
closed shop agreement took effect. prescribe its own rules with respect to the
acquisition or retention of membership;
Supervisors ineligible under the Act to join
the majority union because of the A VIOLATION is committed when a union
membership therein of employees under restrains or coerce as an employee in the
their supervision. exercise of his right to REFUSE to participate in
a strike. There is also a violation when a union
Confidential employees who are excluded threatens employees with bodily harm in order to
from the rank & file bargaining unit; and force them to strike.
Employees excluded from the closed shop Second ULP : Discrimination

by express terms of the agreement.
To cause or attempt to cause an employer to
DISMISSAL pursuant to a closed shop discriminate against an employee, including
agreement must clearly appear in the contract discrimination against an employee with respect
to whom membership in such organization has
been denied or to terminate an employee on any
Sixth ULP : Discrimination because of ground other than the usual terms & conditions
testimony under which membership or continuation of
membership is made available to other members
To dismiss, discharge or otherwise prejudice or
discriminate against an employee for having ARBITRARY use of union security clause
given or being about to give testimony under this
code Third ULP : Refusal to Bargain
INDIRECT Discrimination
LABOR LAW REVIEWER
To violate the duty, or refuse to bargain PARTICIPATED IN, AUTHORIZED OR RATIFIED

collectively with the employer, provided it is the ULP shall be held criminally liable
representative of the employees
Fourth ULP : Featherbedding

STRIKES AND LOCKOUTS
To cause or attempt to cause an employer to pay
or deliver or agree to pay or deliver any money or WORKERS shall have the right to engage
other things of value, in the nature of an exaction, in concerted activities for purposes of collective
for services which are not performed or not to be bargaining or for their mutual benefit and protection
performed, including the demand for fee for union
negotiations LIMITATIONS
Must be peaceful
FEATHERBEDDINGis the name given to
employee practices which create or spread In accordance with law
employment by unnecessarily maintaining or
increasing the number of employees used, or the STRIKE
amount of time consumed, to work on a particular
job Means any temporary stoppage of work by
the concerted action of employees as a result of an
industrial or labor dispute
Fifth ULP : Sweetheart contract

CHARACTERISTICS OF STRIKE
To ask or accept negotiations or attorneys fees
from employers as part of the settlement of any There must be an established relationship
issue in collective bargaining or any other dispute between the strikers & the person is against
whom the striker is called
SWEETHEART Contracta delicious and
yummy tender juicy sweet deal between the The relationship must be one of the employer
employer and the union bargainers whereby the and employee
labor organization asks for or accepts
negotiation, attorneys fees from the employer in the existence of a dispute between the parties &
settling a bargain issue or a dispute the utilization by labor of the weapon of
concerted refusal to work as a means of
Sixth ULP : Violation of CBA persuading, or coercing compliance with the
working mens demands
To violate collective bargaining agreement
The contention advanced by the workers that
VIOLATION of the CBA under Art 248 and 249 although work ceases, the employment relation is
are no longer treated as ULP, and shall be deemed to continue albeit in a state of belligerent
resolved as grievances under the CBA, suspension
EXCEPT those which are gross in character
There is work stoppage, which stoppage is
GROSS violations of the CBA shall mean a
temporary
flagrant / malicious refusal to comply with the
ECONOMIC provisions of such agreement
The work stoppage is done through concerted
action of the employees
LIABILITY FOR ULP
The striking group is a LLO & in case of
ULP of employers
bargaining deadlock, is the employees sole
bargaining representative
ONLY the officers & agents of the corporations,
associations or partnerships who have actually
KINDS OF STRIKE
PARTICIPATED IN, AUTHORIZED OR
RATIFIED ULP shall be held criminally liable
As to extent
ULP of Labor Organizations
General strike
ONLY the officers, members of governing
Extends over a whole community, province,
boards, representatives or agents or members of labor
state or country
associations or organizations who have actually
LABOR LAW REVIEWER
Local / Particular Strike employers including a particular employer who

has no dispute with his employees regarding their
One undertaken by workers in a particular terns and conditions of employment
enterprise, locality or occupation, it usually
involves only one union or only one industry As to Purpose / Nature of Employee Interest
As to the Nature of the Act Economic Strike
strike proper Intended to force wage & other concessions

from the employer, which he is not required
sit-down strike by the law to grant
Occurs when a group of employees or other This is a strike held to force wage or
interested in obtaining a certain objective in concessions from the employer which he is
a particular business forcibly take over not required by law to grant
possession of the property of such business,
establish themselves within the plant, stop The CONVERSION Doctrine
its production & refuse access to the owners
or the others desiring to work. A striker may start as economic & then as it
progresses, become ULP, or vice versa
Slowdown
NOTE: strikers who are permanently
Willful reduction in the rate of work by a replaced during the economic phase of the
group of employees for the purpose of strike are not entitled to immediate
restricting the output of the employer reinstatement, while strikers replaced after
the date of conversion are.
partial / quickie strike
Takes the form of intermittent, unannounced ULP Strike

work stoppage, including slowdowns,
unauthorized extension of rest periods & Called against the unfair labor practices of
walkouts for portions of a shift or for entire the employer, usually for the purpose of
shifts. making him desist from further committing
such practice.
WILDCAT Strikework stoppage that violates
the labor contract and is not authorized by the A strike which is provoked or prolonged by a
union. refusal to bargain or a discriminatory
discharge or any sort of ULP by the
As to Degree of Employee Interest employer
Primary Strike ULP Strike in good faith
One declared by the employees who have a If the management performed acts, which
direct & immediate interest, whether under the circumstances, the strikers
economic or otherwise, in the subject of the believed were ULP on the part of the
dispute, which exist between them & their management, although they were not, the
employer court ruled that the strike cannot be held
illegal. However, the unions belief needs
Secondary Strike some rational basis
Coercive measure adopted by the workers TWO test in determining the existence
against an employer connected by product of ULP strike
or employment with alleged unfair labor
condition or practice OBJECTIVELY, when the strike is declared
in protest of ULP which is found to have
Sympathetic Strike been actually committed;
One in which the striking employees have SUBJECTIVELY, when a strike is declared
no demands or grievances of their own, but in protest of what the union believed to be
strike for the purpose of directly or indirectly ULP committed by the management, & the
aiding others, without direct relation to the circumstances warranted such belief in good
advancement of the interest of the strikers. faith, although found subsequently as not
committed
WELGA NG BAYANIn the nature of a general

strike which is but an extended sympathetic GROUNDS FOR STRIKE
strike; it is work stoppage affecting numerous
LABOR LAW REVIEWER
Collective bargaining deadlock ~ If the Reason is ULP, only a LLO

(assuming there is no recognized /
ULP of the employer certified bargaining agent)
PROTECTION OF STRIKE Cooling off Period
It is generally not subject to labor injunction A time gap requires to cool-off tempers
between the filing of notice & the actual
Employees may not be discriminated against execution of strike (or lockout)
merely because they have exercised the right to
strike THE cooling off period is
The use of strike-breakers is prohibited ~ In case of BARGAINING

DEADLOCK: 30 days
STRIKE BREAKER - Is a person who obstructs,
impedes, violence, coercion, threats or intimidation ~ In case of ULP: 15 days
any peaceful picketing by employees during any labor
controversy affecting wages, hours or conditions of
work in the exercise of right of self-organization or UNION BUSTING
collective bargaining
In the face of UNION BUSTING where the
Mere participation in a strike does not sever the unions existence is threatened, the cooling
employment relationship off period need NOT be observed
ROLE of the police UNION Busting exists when
The involvement of the AFP / PNP shall be limited to ~ The union officers are being
maintenance of peace & order, enforcement of laws & dismissed;
legal orders of duly constituted authorities & the
performance of the specific functions as may be ~ Those officers are duly elected in
provide by law. accordance with the union CBL;
FACTORS AFFECTING THE ~ The existence of the union is

LEGALITY OF A STRIKE threatened
Statutory Prohibition strike vote
Government employees have the right to Before a strike (a lockout) may actually be
organize, but they do not have the right to strike. started, a strike / lockout vote should be
A strike held by them would be an illegal strike taken by secret balloting, with 24 hour
that violates a legal prohibition prior notice to NCMB
No strike / lockout may be declared on grounds The DECISION to declare a strike requires
involving inter-union & intra-union disputes or an the secret ballot approval of majority of the
issue brought to voluntary / compulsory total union membership in the bargaining
arbitration unit concerned (50% + 1)
Procedural Requirements A LOCKOUT needs the secret ballot

concurrence of majority of the directors or
Notice of strike partners
Notice of strike (or lockout), with the

required contents, should be filed with the Strike Vote Report
DOLE, specifically the regional branch of
NCMB, copy furnished the employer or the The result of the strike vote (or lockout vote)
union, as the case may be should be reported to the NCMB at least
seven (7) days before the intended strike or
WHO can file a notice of strike lockout, subject to the cooling off period
~ If the reason is bargaining AFTER the strike vote is taken, 7 days must
deadlock, only the bargaining pass before the union can actually
union has the legal right to file a commence the strike. A strike held within the
notice of strike 7 day waiting period is plainly illegal
COMPUTATION
LABOR LAW REVIEWER
Seven days are added to the 15 day or 30 any or all prohibited or unlawful acts to require
day period the performance of a particular act in any labor
dispute
NOTE: failure to comply with the procedure
requirements is fatal to the legality of a Article 263 (g) : National Interest
strike / lockout. (mandatory)
AUTOMATIC INJUNCTION
DECLARATION of Strike / Lockout
Injunction in national interest cases is expressly
If the dispute remains unsettled after the allowed, in fact, an injunction may be issued
lapse of the cooling off period & the 7 automatically, that is even if none of the parties
day reporting period, the labor union may asks for it
strike or the employer may lockout its
workers. ASSUMPTION of Jurisdiction &
CERTIFICATION to the NLRC
UNLAWFUL PURPOSE When, in his opinion there exists a labor dispute

causing or likely to cause a strike or lockout in an
The law does not expressly ban strikers industrial indispensable to the national interest,
except when enjoined against by the court; but if a the Sec of Labor may assume jurisdiction over
striker is declared for a trivial, unjust, or unreasonable the dispute & decide it or certify the same to the
purpose, or if it is carried out through unlawful means, NLRC for compulsory arbitration
the law will not sanction it & the court will declare it
illegal, with the adverse consequences to the strikers. EFFECT of Assumption / Certification
Means & Methods Such assumption or certification has the effect of

automatically enjoining the intended or impending
LIMITATIONS strike or lockout as specified in the assumption or
certification order. If the one has already taken
No person engaged in picketing shall: place at the time of assumption or certification, all
striking or locked out employees shall
Commit any act of violence, coercion or immediately return to work & the employer shall
intimidation, or immediately resumes operations & readmit all
workers under the same terms & conditions
Obstruct the free ingress to or egress from prevailing before the strike or lockout.
the employers premises for lawful
purposes, or Striking workers must cease &/or desist from any
& all acts that tend to, or undermine this authority
Obstruct public thorough fares of the Sec of Labor, once assumption &/or
certification ordered is issued. They cannot, for
PENALTY instance, ignore return-to-work orders, citing ULP
on the pert of the company, to justify their actions
Art. 289, RPC: The penalty of arresto mayor & a
fine not exceeding 300 pesos shall be imposed If it is an economic strike, the strikers are bound
upon any person who, for the purpose of to the provision but if it is a ULP strike, the
organizing, maintaining or preventing coalitions of strikers are not bound to such provision
capital or labor, strike of laborers or lockouts of
employers shall employ violence or threats in LOCKOUT
such a degree as to compel or force the laborers
or exercise of their industry or work, if the act Means the temporary refusal of any
shall not constitute a more serious offense in employer to furnish work as a result of an industrial or
accordance with the provision of the code (RPC) labor dispute
NOTE: EVEN if the purpose of a strike is valid, Grounds for Lockout

the strike may be held invalid where the means
employed are illegal Collective bargaining deadlock
Injunction ULP act of a union
No temporary or permanent injunction or Requisites of a valid lockout

retraining order in any case involving or growing
out of labor disputes shall be issued by any court Notice of intention to declare a lockout has been
or other entity, except as otherwise provided in filed with the DOLE
Article 218 & 264 of this code (Art. 254)
At least 30 days has elapsed since the filing of
Article 218 (e) empowers the NLRC to enjoin or notice before lockout is declared
restrain any actual or threatened commission of
LABOR LAW REVIEWER
An impasse had resulted in the negotiations; and Prosecution under Art. 272, LCP shall
preclude prosecution for the same act under the RRC,
Lockout is not discriminatory & vice versa
NOTE: Lockout is valid where, in the course of a Consequences of Strike & Lockout
labor dispute, it is undertaken as a defensive weapon,
or in pursuance of the employers interest. Strikers Retention Of Employment
UNLAWFUL Lockout Strikers remain as employees while they are on

strike; the effects of employment are merely
Where it is declared in order to defeat suspended during that time. When the strike is
organizational and bargaining right employees over, the employees go back to work & the
effects of employer employee relationship are
Prohibited Activities resumed
No labor organization or employer shall declare a

strike or lockout without first having bargained STRIKERS LOSS OF EMPLOYMENT
collectively in accordance with Title VII of this
Book or without having filed the required notice or Striker is a worker
without the necessity strike or lockout vote first
having been obtained and reported An ordinary striking worker cannot be terminated
for mere participation in illegal strike. There must
No strike or lockout shall be declared after be proof that he committed illegal acts during a
assumption of jurisdiction by President or the Sec strike
of Labor or after certification or submission of the
dispute to compulsory / voluntary arbitration or NOTE: Mere participation of a worker in a lawful
during the pendency of cases involving the same strike shall not constitute sufficient ground for
grounds for the strike or lockout. termination of his employment, even if a
replacement had been hired by the employer
No person shall obstruct, impede or interfere during such lawful strike
with by force, violence, coercion, threats or
intimidation any peaceful picketing by employees Strike is a union officer
during any controversy or in the exercise of the
right to self-organization or collective bargain or A union officer may be terminated from work
shall aid or abet such obstruction or interference when he knowingly participates in an illegal
strike, or when he commits an illegal act during
No employer shall use or employ any the strike
strikebreaker, nor shall any person be employed
as a strikebreaker NOTE: The penalty of dismissal for participating
in an illegal strike is limited ONLY to the union
No public official or employee, including officers & leaders. Penalty may be scaled down to
personnel of the AFP or the PNP, or armed suspension
person shall bring in, introduce or escort in any
manner any individual who seeks to replace WHO dismisses illegal strikers
strikers in entering or leaving the premises of a
strike area, or work in place of the strikers. The The law grants the employer the option of
police force shall keep out of the picket lines declaring a union officer who participated in an illegal
unless or other criminal acts occur therein. strike as having lost his employment
Nothing herein shall be interpreted to prevent any
public officer from taking any measure necessary BACK WAGES
to maintain peace & order, protect life & property,
&/or enforce the law & legal order In an ECONOMIC strike
No person engaged in picketing shall commit any The strikers are not entitled to back wages on the
act of violence, coercion or intimidation or principle that a fair days wage accrues only for
obstruct the free ingress or egress from the a fair days labor (no work, no pay policy)
employers premises for lawful purposes, or
obstruct public through fares EXCEPTION:
PENALTY for violation The strike is legal
Any person violating the above provisions There is an unconditional offer to return to
shall be punished by a fine of not less than P1,000.00 work; and
nor more than P10,000.00 &/or imprisonment for not
less than 3 months. Nor more than 3 years, or both There is a refusal on the part of the
such fine & imprisonment, at the discretion of the court employer to accept strikers to work
LABOR LAW REVIEWER
In an ULP Strike Picketing conducted as to amount to a

nuisance is unlawful. Picketing maybe a nuisance it
Strikers who were discriminatorily dismissed / constitutes an obstruction to the free use of property,
affected by the ULP are entitled to back wages. so as substantially to interfere with the comfortable
The law on illegal dismissal applies. enjoyment of life or property, or if it constitutes an
unlawful obstruction to the free passage or use, in the
HOWEVER, those who voluntarily joined in customary manner of a street.
sympathy of their co workers are not entitled to
back wages in case of unlawful Picketing carried on with intimidation,
threats, coercion, or force is unlawful, however
Lockout laudable the strikers motive or purpose, & regardless
of whether the intimidated persons are the employers,
Any worker whose employment has been employees or customers.
terminated as a consequence of an unlawful
lockout shall be entitled to reinstatement with full Vandalism & acts of a less terroristic nature
back wages which are designed to cause physical discomfort to
the employers customers are also unlawful.
Employers right to hire replacements during
strike / reinstatement of strikers Untruthful picketing is unlawful picketing & is
enjoyable even though its purpose is valid. False
During the pendency of an economic strike, statements are not constitutionally protected free
the employer may hire replacements on a permanent speech
basis & is not bound to discharge such permanent
replacement in the event that strikers resume to work. The PUBLIC EASEMENT OF WAY and
PASSAGE permits of pickets to parade in front of or
While replacement may also be hired by the near the picketed establishment. As members of the
employer to take the places left vacant by employees general public, they have the right, however is one of
engaged in an ULP strike, such replacements are not passage a pedestrian right. It does not create the
permanent & their employer is under the duty to additional right of squatting or assembly on this
dismiss them as soon as the strikers request portion of the employers land.
reinstatement in their previous positions
Art. 265. Improved Offer / Reduced Offer OTHER CONCERTED ACTIVITIES

Balloting
Collective Letter
The DOLE shall conduct a referendum by
secret balloting on the improved offer of the employer Constitutes an informal action participated in by
on or before the 30th day of strike. When at least a at least two employees for mutual aid or
majority of the union members vote to accept the protection in regard to their interests
improved offer, the striking workers shall immediately
return to work & the employer shall thereupon readmit Publicity
them upon the signing of the agreement.
Members of a labor union may make known the
In cases of lockout, the DOLE shall also facts of a labor dispute by sign, handbill, or
conduct a referendum by secret balloting on the newspaper advertisement as a legitimate means
reduced offer of the union on or before the 30th day of of economic coercion
the lockout. When at least a majority of the board of
directors or trustees or the partners holding the NOTE: It is unlawful for a labor organization in a
controlling interests in the case of a partnership vote radio broadcast to express its honest opinion as
to accept the reduced offer, the workers shall to the fairness of an employer toward organized
immediately return to work & the employer shall labor & to advise the public & friends of labor not
thereupon readmit them upon the signing of the to patronize him. HOWEVER, the use of loud
agreement. speakers in front of a picketed place of business
has been condemned as form of intimidation.
PICKETING Boycott
The presence of striking workers or their An attempt, by arousing a fear of loss, to coerce
union brothers who pace back and forth before the others, against their will to withhold from one
place of business of an employer considered unfair to denominated unfriendly to labor their beneficial
organize labor in the hope of being able to persuade business intercourse.
peacefully other workers not to work in the
establishment, & customers not do business there. KINDS of Boycott
LIMITATIONS Primary Boycott
LABOR LAW REVIEWER
Applied directly & alone to the offending self-organization & join or assist labor
person by withdrawing from him all business organizations of their own choosing for purposes
relations on the part of the organization that of collective bargaining
initiated the boycott;
Said aliens are nationals of a country which
Secondary Boycott grants the same or similar rights to Filipino
Workers
A combination not merely to refrain from
dealing with a person, or to advise or by REGULATION OF FOREIGN
peaceable means persuade his customers ASSISTANCE
to refrain, but to exercise coercive pressure
upon such customers, actual or prospective, No foreign individual, organization or entity
in order to cause them to withhold or may give any donations, grants or other forms of
withdraw patronage from him through fear of assistance, in cash or in kind, directly or indirectly, to
loss or damage to themselves should they any labor organization, group of workers or any
deal with him. auxiliary thereof, such as cooperatives, credit unions
and institutions engaged in research, education, or
Boycott maybe lawful or unlawful depending on communication, in relation to trade union activities
the means & methods employed & the ends with prior permission by the Sec of Labor
intended to be accomplished. Its lawfulness may
also depend upon whether it is used against the NOTE: This prohibition shall equally apply to foreign
industrial antagonist directly or against an donations grants or other forms of assistance, in cash
outsider because of his influence on or or in kind, given directly or indirectly to any employer
connection with the industrial antagonist or employers organization to support any activity or
activities affecting trade unions
MEANS & Methods
The Sec of Labor shall promulgate rules &
Maybe in the form of a refusal of a labor union to regulations to regulate and control the giving &
allow its members to handle products of the receiving of such donations, grants, or other forms of
employer or to work on materials from non assistance, including the mandatory reporting of
union shops, or to work on a job upon which a amounts of donations or grants, the specific recipients
contract or with whom they are at variance in an thereof, the projects or activities proposed to be
existing labor dispute supported & their duration
Slowdown Trade Union Activities
Method by which ones employees without The phrase shall mean

seeking a complete stoppage of work, retard
production & distribution in an effort to compel Organization, formation & administration of labor
compliance by the employer with the labor organizations;
demands made upon him.
Negotiation & administration of CBA;
ARREST & DETENTION
EXCEPT on the grounds of national All forms of concerted union activities

security & public peace, or in case of commission of
crime, no union members or union organizers may be Organizing, managing, or assisting union
arrested or detained for union activities with previous conventions, meeting rallies, referenda, teach
consultation with the Sec of Labor ins, seminars, conferences and institutes
Any form of participation or involvement in

FOREIGN ACTIVITIES representation proceedings, representation
proceeding, representation elections, consent
elections, union elections; and
PROHIBITION AGAINST ALIENS
Other activities or actions analogous to the
All aliens, natural or juridical, as well as foregoing.
foreign organizations are strictly prohibited from
engaging directly or indirectly in all forms of trade
union activities without prejudice to normal contracts
between Philippine Labor Unions & recognized SPECIAL LAWS
international labor centers
REPUBLIC ACT NO. 8291
EXCEPTIONS THE GOVERNMENT SERVICE INSURANCE
SYSTEM ACT OF 1997
Aliens working in the country with valid permits
Effectivity: June 24, 1997
issued by the DOLE may exercise the right to
LABOR LAW REVIEWER
OBJECTIVES Dependent children
Expand and increase the coverage and benefits Secondary

of the GSIS; and
Dependent parents; and
Introduce institutional reforms for the GSIS to
have more flexibility, and thus perform its mission Legitimate descendants subject to restrictions on
of providing social security protection more dependent children
effectively.
COMPULSORY COVERAGE
EMPLOYER
Membership is compulsory for all
National Government and its political employees:
subdivisions, branches, agencies and
instrumentalities; Appointive or elective;
Government-owned and/or controlled Whether temporary, casual, permanent or

corporations and financial institutions with original contractual with employer-employee relationship;
charters; and
Who are receiving basic pay or salary but not per
Constitutional Commissions and Judiciary diems, honoraria, or allowances, and;
EMPLOYEE Who have not reached the compulsory retirement

age of 65.
Person receiving compensation while in service,
whether elective or appointive, irrespective of The following are excluded from
status or appointment; compulsory coverage:
Barangay officials; and Uniformed members of the Armed Forces of the

Philippines and the Philippine National Police,
Sanggunian officials including Bureaus of Jail Management and
Penology, and Fire Protection; and
DEPENDENT Those not receiving basic pay or salary (per
Diems, honoraria, or allowances are excluded)
Child-
All members of the GSIS shall have life
Legitimate insurance, retirement and all other social security
protection such as disability, survivorship, separation
Legitimated and unemployment benefits except for the members
of the judiciary and constitutional commissions who
shall have life insurance only.
Legally adopted
EFFECT OF SEPARATION FROM
Illegitimate, who is unmarried, not gainfully EMPLOYMENT OR INTERRUPTION OF
employed and not over the age of majority, BUSINESS INCOME
or is over the age of majority but is
incapacitated and incapable of self-support A member separated from the service shall
due to mental or physical defect acquired continue to be a member, and shall be entitled to
prior to age of majority whatever benefits he has qualified to in the event of
any contingency compensable under this Act.
Spouse
FUNDING
Legitimate and dependent for support upon
member or pensioner It is mandatory for the member and the
employer to pay the monthly contributions.
Parents
EFFECT OF NON-REMITTANCE
Legitimate and dependent upon member for
support Government Guarantee
BENEFICIARIES The Government guarantees the fulfillment

of the obligations of the GSIS to its members as and
Primary when they fall due.
Dependent spouse-until remarriage
LABOR LAW REVIEWER
Effect of Non-Remittance on Benefit As to the benefits to be received, a

Eligibility retiree has 2 options:
All loan privileges of the member shall be The 5-year lump sum (60 x Basic Monthly
suspended; Pension) plus the basic monthly pension for life
starting at the end of the 5-year guaranteed
Determination of eligibility to and computation of period; or
benefits will be made subject to the deduction of
the contribution arrearages and service loans The cash payment (18 x Basic Monthly Pension)
accounts plus corresponding surcharges from the plus the basic monthly pension for life starting
proceeds of the claim. immediately upon retirement.
BASIS OF CLAIM Conditions for entitlement:
Non-work connected disability, sickness and Member has rendered at least 15 years of
death. service
For permanent disability, there can be no benefit At least 60 years of age at the time of retirement
if the disability is due to grave misconduct,
notorious negligence, habitual intoxication and Not receiving a monthly pension benefit from
willful intention to kill one's self or another. permanent total disability.
Survivorship Other Retirement Benefit Features:
Separation from Service Retirement shall be compulsory at age 65.
Unemployment Employees who entered the service before June

1, 1977 and who have not received any
COMPUTATION OF SERVICE separation or retirement benefits have he option
to retire under Republic Act Nos. 1616, 660 or
The computation of service for determining 8291.
the amount of benefits payable under this Act shall be
from the date of original appointment/election, Retirement benefits shall be paid on the last day
including: of service in government if all requirements are
submitted to the GSIS at least 30 days prior to
Periods of service at different times under one or the effective date of retirement.
more employers;
SEPARATION BENEFIT
Service rendered overseas provided the
employee received compensation from his/her 2 types of separation benefits and
employer; and eligibility requirements:
Services that may be prescribed by the GSIS in A member who has rendered at least 3 years but
coordination with the Civil Service Commission. less than 15 years of service is eligible for
separation benefit in the form of cash payment
Services credited for retirement, resignation equivalent to 100% of the Average Monthly
or separation for which corresponding benefits have Compensation for every year or service payable
been awarded under this Act or other laws shall be upon reaching age 60 or upon separation,
excluded in the computation of service in case of whichever comes later, if he is not receiving a
reinstatement in the service or separation monthly pension benefit from permanent total
compensable under this Act. disability.
For the purpose of computing the total A member who has rendered at least 15 years of
service rendered, the term service shall mean full-time service and who is below 60 years of age at the
service with compensation. Part-time service with time of resignation or separation is eligible for
compensation shall be converted to its full-time separation benefit in the form of cash payment
equivalent. equivalent to 18 times the basic monthly pension
payable at time of separation plus the basic
Part-time service shall be converted using a monthly pension for life starting at age 60.
40-hour per week and a 52-week per year as basis.
UNEMPLOYMENT BENEFIT
BENEFITS The unemployment benefit is paid when a

permanent employee is involuntarily separated from
RETIREMENT BENEFITS the service as a result of the abolition of his office or
position usually resulting from reorganization.
LABOR LAW REVIEWER
He/she recovers from his disability as determined

A permanent employee who has paid the 12 by the GSIS, whose decision shall be final and
monthly integrated contributions stipulated under binding
this Act is eligible to the unemployment benefit.
He/she fails to present himself for medical
Unemployment benefits are in the form of examination when required by the GSIS
monthly cash payments equivalent to 50% of the
average monthly compensation. The duration of The following disabilities are considered
the benefit depends on the length of service and permanent total:
ranges from 2 months to a maximum of 6
months. Complete loss of sight in both eyes;
Loss of two (2) limbs at or above the ankle or

DISABILITY BENEFITS wrist;
PERMANENT DISABILITY BENEFIT Permanent complete paralysis of two (2) limbs;
A member who suffers permanent disability Brain injury resulting in incurable imbecility or
for reasons not due to his grave misconduct, notorious insanity; and
negligence, habitual intoxication or willful intention to
kill himself or another shall be entitled to the benefits Other cases as may be determined by the GSIS
subject to the corresponding conditions:
Permanent Partial Disability
Conditions for Entitlement:
A member who becomes permanently and
He/she is in service at the time of disability partially disabled is eligible for permanent partial
disability benefits in the form of cash payment
If separated from service, he/she has paid at equivalent to the basic monthly pension times the
least 36 months contributions within the 5 year number of months specified in the schedule of
period immediately preceding the disability or has disabilities or Table of Loss Percentages.
paid a total of at least 180 months contributions
prior to the disability. The following disabilities are considered
permanent partial:
Permanent Total Disability
Complete and permanent loss of the use of:
A member who becomes permanently and totally
disabled when he/she is in the service and has Any finger
paid at least 180 monthly contributions shall be
paid the permanent total disability benefit in the Any toe
form of a monthly income benefit for life
equivalent to the basic monthly pension plus One arm
cash payment equivalent to 18 times his basic
monthly pension effective on the date of disability. One hand
A member who becomes permanently and totally One foot

disabled when he/she is separated from the
service with at least 3 years of service but has One leg
not paid 36 monthly contributions within the last 5
years immediately preceding the disability is One or both ears
eligible for permanent total disability benefits in
the form of cash payment equivalent to 100% of Hearing of one or both ears
the average monthly compensation for every year
of service he paid contributions but not less than Sight of one eye
P12,000.
Such other cases as may be determined by the
GSIS
Suspension of Disability Benefits
Unless the member has reached the TEMPORARY TOTAL

minimum retirement age, disability benefits shall be DISABILITY BENEFITS
suspended when:
Daily benefit equivalent to 75% of the
He/she is reemployed current daily compensation (monthly
compensation/22) or fraction thereof of temporary
disability benefit not exceeding 120 days in one
calendar year after exhausting all sick leave credits
LABOR LAW REVIEWER
and collective bargaining agreement sick leave preceding his death; or has paid a total of at least
benefits, if any, but not earlier than the fourth (4th) day 180 monthly contributions prior to his death:
of disability.
His primary beneficiaries shall receive the
Conditions for Entitlement: survivorship pension; or
He is in service at the time of disability and has In the absence of primary beneficiaries, the
exhausted his sick leave credits; or secondary beneficiaries shall be entitled to
the cash payment; or
If separated from service, he has rendered at
least 3 years of service and has paid at least 6 In the absence of both primary and
months contributions in the 12-month period secondary beneficiaries, the cash payment
immediately preceding disability. shall be paid to his legal heirs.
A member cannot enjoy temporary total Upon the death of a retiree-pensioner

disability benefit and sick leave pay simultaneously. or a member receiving the monthly income
benefit for permanent total disability:
For more extensive cases, duration may be
extended up to a maximum of 240 days. His primary beneficiaries shall receive the
survivorship pension
Minimum benefit is P70 per day while the
maximum is P340 per day. In the case of a pensioner who dies within the
period covered by the lump sum, the survivorship
SURVIVORSHIP BENEFITS pension shall be paid only after the expiration of
the said period.
The survivorship benefits payable to the
beneficiaries shall be either or both of the following: SURVIVORSHIP PENSION
The survivorship pension which consists of : The survivorship pension shall be paid
as follows:
The basic survivorship pension which is
50% of the basic monthly pension, and When the dependent spouse is the only survivor,
he/she shall receive the basic survivorship
The dependent children's pension not pension for life or until he/she remarries;
exceeding 50% of the basic monthly
pension; and / or When only dependent children are the survivors,
they shall be entitled to the basic survivorship
A cash payment equivalent to 100% of his pension for as long as they are qualified, plus the
average monthly compensation for each year of dependent children's pension equivalent to 10%
service the deceased member has paid of the basic monthly pension for every dependent
contributions but not less than P12,000. child not exceeding five (5), counted from the
youngest and without substitution;
Eligibility Requirements and the When the survivors are the dependent spouse
Corresponding Survivorship Benefits: and the dependent children, the dependent
spouse shall receive the basic survivorship
If at the time of his death, a member was in the pension for life or until he/she remarries, and the
service and has rendered at least 3 years of dependent children shall receive the dependent
service: children's pension.
His primary beneficiaries shall receive the FUNERAL BENEFIT

survivorship pension plus cash payment; or
The amount of the funeral benefit shall
In the absence of primary beneficiaries, his initially be P12, 000. 00. It shall be increased to at
secondary beneficiaries shall receive the least P18, 000. 00. after 5 years.
cash payment; or
Persons entitled to funeral benefits:
In the absence of both primary and An active Member

secondary beneficiaries, the legal heirs of
the member shall receive the cash payment. A member who has been separated from the
service, but who may be entitled to future
If at the time of his death, the member was in the separation or retirement benefits; or
service with less than three (3) years service or
was separated from service with at least three (3) A pensioner
years of service and has paid 36 monthly
contributions within the 5-year period immediately
LABOR LAW REVIEWER
A retiree who at the time of his retirement was at The GSIS shall have the original and
least 60 years of age but who opted to retire exclusive jurisdiction to settle disputes arising under
under Republic Act No. 1616. the Act, and any other law administered by the GSIS,
with respect to:
Those who retired under Republic Act No. 1616
prior to the effectivity of this Act with at least Coverage of employers and employees;
twenty (20) years service regardless of age.
Entitlement of members to the following benefits:
LIFE INSURANCE BENEFITS
Retirement
All employees except members of the AFP
and the PNP shall be covered compulsorily with life Separation
insurance.
Unemployment
Benefit features
Disability
Maturity Benefitupon maturity of the life
insurance, the face amount less any Survivorship
indebtedness shall be paid to the member.
Funeral
Death Benefitwhen a member dies prior to
the maturity of his insurance and during its Life Insurance
continuance, the GSIS shall pay to the
designated beneficiaries or to his legal heirs, as Collection and payment of contributions; and
the case may be, the face amount less any
indebtedness.
Any other matter related to any or all of the
foregoing which is necessary for their
Accidental Death Benefitwhen the death of determination.
the member is accidental, the GSIS shall pay the
designated beneficiaries or the legal heirs, as the The quasi-judicial functions of the GSIS
case may be, an additional amount equivalent to shall be vested in its Board of Trustees
the face amount of his compulsory insurance.
The Board shall decide the case transmitted
Waiver of Premiumswhen the member is to it by the Hearing Officer within 30 days from its
separated from service due to permanent total submittal. If the Case was heard directly by the Board,
disability, as determined by the GSIS, the it shall render its decision thereon within 30 working
premiums that may become due and payable days from the time the case is submitted by the
during the period of disability shall be deemed parties for decision.
waived and considered paid.
Cash Surrender Valueafter his insurance PETITIONER

shall have been in force for one (1) year, a
member separated from service prior to the The GSIS, in appropriate cases, or any
maturity of the insurance may be paid the cash person whose rights are or may be prejudiced by the
value less any indebtedness thereon unless the operations of the enforcement of RA No. 8291, CA No.
terms of his separation provide otherwise. 186, as amended, and other laws administered by the
GSIS may file a petition before the GSIS either
Insurance Loansupon application, a member personally or through counsel.
who has been insured for at least one (1) year
may be granted an insurance loan in an amount PRESCRIPTIVE PERIOD
not exceeding fifty percent (50%) of the cash
value of his insurance at the time of application. Claims for benefits under the Act except for
life and retirement shall prescribe after 4 years from
Dividendsan annual dividend may be granted the date of the contingency.
to all members of the GSIS whose life insurance
is in force for at least one (1) year in accordance
with a dividend allocation formula to be BENEFIT PROTECTION
determined by the GSIS.
EXEMPTION OF GSIS FROM TAX
ADJUDICATION OF CLAIMS ASSESSMENTS, FEES, CHARGES
AND DISPUTES OR DUTIES
JURISDICTION Notwithstanding any laws to the contrary,

the GSIS, its assets, properties, revenues including all
Quasi-Judicial Functions of the GSIS accruals thereto, and benefits paid shall be exempt
LABOR LAW REVIEWER
from all taxes, assessments, fees, charges or duties of

all kinds. Seven (7) appointive members: 3 of then shall
represent the workers group, at least 1 shall be a
Rationale woman, and 1 from the general public whose
representative shall have adequate knowledge
The tax exemption is based on the and experience regarding social security, to be
declaration of policy of the State that the actuarial appointed by the President of the Philippines.
solvency of the funds of the GSIS shall be preserved
and maintained at all times and that contribution rates The President of the Philippines from among
necessary to sustain the benefits under this Act shall as members shall designate the chairman of the
be kept as low as possible in order not to burden the commission.
members of the GSIS and their employers. Taxes
imposed on the GSIS tend to impair the actuarial The chairman of COA and Sec. of DOJ
solvency of its funds and increase the contribution rate shall, be the ex-officio auditor and counsel of SSS
necessary to sustain the benefits of this Act. respectively.
EXEMPTION OF BENEFITS FROM Term of Office

TAX ASSESSMENTS
The social security benefits and other The term of the appointive members shall be
benefits of GSIS members under this Act shall be 3 years. The term of the 1st 6 appointive members
exempt from tax, attachment, garnishment, execution, shall 1, 2, and 3 years for every 2 members
levy or other processes issued by the courts, quasi- respectively; provided they shall continue to hold office
judicial agencies or administrative bodies in until their successors shall have been appointed and
connection with all financial obligations with all duly qualified. All vacancies prior to the expiration of
financial obligations of the member, including his the term shall be filled for the unexpired term only.
pecuniary accountability arising from or caused or
occasioned by his exercise or performance of his Powers and Duties of the Commission
official functions or duties or incurred in connection
with his position or work, as well as Commission on To adapt, amend and rescind, subject to the
Audit disallowances. Monetary liability in favor of the approval of the President of the Philippines, such
GSIS may, however be deducted from the benefit of rules and regulations as may be necessary to
the member. carry out the provisions and purposes of the Act.
To establish a provident fund for the members

R.A. 8282 which will consist of voluntary contributions of
REPUBLIC ACT 1161 AS AMENDED, employers and/or employees, self-employed and
Otherwise known as voluntary members and their earnings, for
SOCIAL SECURITY LAW OF 1997 payment of benefits to such members or their
beneficiaries subject to rules and regulation as it
may promulgate and approved by the President
DECLARATION OF POLICIES of the Philippines.
It Is the policy of the State to establish, To maintain a provident fund, which consists of
develop, promote and perfect a sound and viable tax- contribution made by both the SSS and its
exempt social security system suitable to the needs of officials and. employees and their earnings, for
the people throughout the Philippines which shall the payment of their own benefits or their heirs.
promote social justice and provide meaningful To approve the restructuring proposals for the
protection to members and their beneficiaries against payment of due but unremitted contributions and
the hazards of disability, sickness, maternity, old age, unpaid loan amortizations.
and death, and other contingencies resulting to loss of
income or financial burden. To authorize cooperatives registered with the
development authority or associations registered
The State shall endeavor to extend social with appropriate government agency to act as
security protection to workers and their beneficiaries. collecting agents of the SSS with respect to their
members; provided, that the cooperative or
SOCIAL SECURITY SYSTEM (SSS) association is accredited by the SSS and the
persons authorized to collect are bonded.
Composition
To compromise or release, in whole or in part,
Directed and controlled by a Social Security any interest penalty or any civil liability to SSS in
Commission composed: connection with the Investments authorized
under the investment of reserve funds operations
Sec. of Labor and Employment or his duty of the SSS, under terms and conditions it may
designated undersecretary. prescribe as approved by the President of the
Philippines.
SSS president
LABOR LAW REVIEWER
To approve, confirm, pass upon or review any be deemed a party to the judicial action and may be
and all actions of the SSS in the proper and represented by its attorney or by the Solicitor General
necessary exercise of its powers and duties. or any public prosecutor.
Powers and Duties Court Review
To submit annually, not later than April, a public Decisions may also be elevated as follows:
report to the President of the Philippines and to those that have questions of law and fact are
the Congress covering its activities in the cognizable by the Court of Appeals. While questions
administration and enforcement of this Act during of law are cognizable by the Supreme Court.
the preceding year Including Information and
recommendation on its programs.
To require the actuary to submit a valuation SSS COVERAGE

report on the SSS benefit program every 4 years
or as may be necessary and to undertake COMPULSORY
actuarial studies concerning increases in
benefits. To provide feasible increases in benefits Any benefit already earned by employees
in 4 years provided that the reserve fund shall be not over 60 years old and their employers,
guaranteed and such increases in benefits shall except those in the government, any of its
not require any increase in the rate of political subdivisions and GOCCs under the
contribution. private benefit plans existing at the time of
the approval of this Act shall be integrated
To establish offices of the SSS. with the plan of the SSS (effective on the 1st
day of operation as an employee and shall
To enter in to agreements or contracts for such cease at the end of the month of
service as may be needed. separation).
To adapt of budget of expenditures including In case of Domestic helpers, their monthly

salaries of personnel against all funds available income shall not be less than 1000 pesos.
to the SSS.
Self-employed persons as may be
To set-up it's accounting system. determined by the Commission, including
self employed professionals, proprietors,
and actors/actresses... etc, professional
To require reports and to make investigation as
athletes and coaches and farmers and
may be deemed needed.
fishermen (effective upon registration with
the SSS).
To acquire and dispose of property, real or
personal, which may be necessary or expedient
for the attainment of its purposes.
To receive or hold, by way of purchase,

VOLUNTARY
expropriation or otherwise, public or private
property for the purpose of housing projects
Spouses who devote full time to managing
preferably for the benefit of low income members
the household and family affairs unless they
and for hospitals and institutions for the sick aged
are engaged in employment, which is
and, disabled, as well as schools for the
subject to mandatory coverage.
members and their families.
Filipinos recruited by foreign-based
To sue and be sued in court. employers for employment abroad.
To perform such other corporate acts
SETTLEMENT OF DISPUTES BENEFITS

Any dispute with respect to coverage, Monthly Pension
benefits, contributions and penalties or any matter
related thereto shall be cognizable by the Commission Minimum of 1,200 for at least 10 credited
which shall be decided within 20 days after years of service.
submission of evidence. Minimum of 2,400 for 20 credited years of
service
Appeal In case of death, disability, permanent or
total disability or retirement, dependent's
Any decision of the Commission shall be pension is equivalent to 10% of monthly
appealable to regular courts, within 15 days after date pension or 250 pesos which ever Is higher
of notification of the decision. The Commission shall shall be paid for each dependent child
LABOR LAW REVIEWER
conceived on or before the date of the self - employment not earlier than 1 year from the
contingency but not exceeding 5 beginning date of disability shall again be subject to
with the youngest without substitutions. compulsory coverage and shall be considered a
Legitimate children are preferred over the new member.
Illegitimate ones.
Monthly and dependents pension shall be
Retirement benefits suspended upon employment or recovery of the
disabled member or his failure to present himself
Those who paid at least 120 monthly for examination at least once a year.
contribution prior to retirement, and who has
reached the age of 60 each or 65 years and Upon the death of the disabled pensioner, his
is already separated from employment or primary beneficiaries shall receive the monthly
has ceased to be self employed shall be person. In the absence of primary beneficiaries
entitled to monthly pension with an option to and the member dies within 60 months from the
receive his 1st 18 monthly pension In lump start of his monthly pension, his secondary
sum. beneficiaries shall be entitled W a lump sum
benefit equivalent to the balance of the 5 year
Member who is 60 years old at retirement guaranteed period excluding dependents
but does not qualify under (a.), shall be pension.
entitled to a lump sum benefit equal to the
total contributions paid by him: provided,
that he is separated from employment and is The following are permanent total
not continuing payment of contributions. disabilities:
The monthly pension shall be suspended Complete loss of sight of both eyes.
upon the re-employment or resumption of self-
employment of a retired employee who is less than 65 Loss of 2 limbs at/or above the ankle or
years old. wrist.
Upon the death of the retired member, his Permanent complete paralysis of 2 limbs.
primary beneficiaries shall receive the monthly
pension. In the absence of primary beneficiaries and Brain injury resulting to incurable imbecility
the member dies within 60 months from the start of his or insanity.
monthly pension, his secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to the Such cases as determ4ned and approved
balance, of the 5 year guaranteed period excluding by the SSS.
dependents pension.
Death Benefits
Those who paid at least 36 monthly

contributions prior to the semester of death -
primary beneficiaries are entitled to lump
sum benefit equal to: (36 x monthly pension)
Permanent Partial Disability
Those who have not paid the required 36 This uses the same rule as Permanent Total
months of contribution, their primary and Disability with due regard to the degree of
secondary beneficiaries are entitled to lump disability.
sum benefit equal to: (monthly pension x no.
of contribution) or (12 x monthly pension) Funeral benefit
which ever is higher.
Grant equal to 12, 000. 00 in cash or kind, upon
Permanent Total Disability the death of a member including permanently
totally disabled member.
Those who paid at least 36 monthly
contributions prior to semester of disability - Sickness Benefit
monthly pension.
A member who has paid at least: 3 monthly
Those who have not paid at least 36 months contributions in the 12-month period, immediately
of contribution are entitled to lump sum preceding the semester of sickness or injury and
benefit equal to (monthly pension x no. of is confined for more than 3 days in a hospital or
contribution) or (12 x monthly pension) elsewhere with the approval of the SSS, shall be
which ever is higher. paid by his employer or the SSS a daily sickness
benefit equal to 90% of his average daily salary
A member who (1) has received lump sum credit subject to the following conditions:
benefit and (2) is re-employed or has resumed
LABOR LAW REVIEWER
The daily sickness benefit shall not be paid Maternity benefit shall only be paid for the
longer than 120 days in I calendar year; the 1st '4 deliveries or miscarriages.
unused portion of the 120 days of sickness
benefit may not be carried forward or added SSS shall reimburse the employer 100% for
to the subsequent year. the amount of maternity benefits advanced
upon receipt of proof of the payment and
The daily sickness benefit shall not be paid legality.
for more than 240 days on account of the
same confinement. In cases where the employer fails to transmit
contributions of his employee or shall have
Notification of the fact of sickness must be failed to notify the SSS of the pregnancy, he
given to the employer or to the SSS (in case shall be made to pay the SSS damages
self-employed) within 5 calendar days after equal to the benefits the employee would
the start of confinement, unless such otherwise be entitled.
confinement is in a hospital or the employee
became sick or was injured while working or Non-transferability of Benefits
within the premises of the employer.
Retirement benefits paid only to members
Compensable confinement shall begin on the first who have submitted the necessary documents at least
day of sickness, and the employer shall make 6 months before.
payment every regular payday.
FOREIGNER BENEFICIARY
100% of the daily benefits shall be reimbursed by
the SSS to the employer upon receipt of prove of General rule is that the SSS shall not pay
such payment and fta4ty thereof, provided, that unless the foreigner is from a country that extends the
the employer has notified the SSS within 5 days same benefits to a Filipino beneficiary or is recognized
after the notification of the employee. by the Philippines.
Notification to the SSS beyond the 5 day period; Exception: payment may be authorized by
the employer shall be entitled only to the SSS according to its interests.
reimbursement for each day of confinement
starting from the 10th day preceding the date of MINOR RECIPIENT OR INCAPACITATED
notification.
Payment shall be made to the parent or spouse
Provided further that the reimbursement of the of the recipient who have custody of the minor or
SSS shall only be for confinement within 1-year incapacitated.
preceding the date the claim for benefit or
reimbursement is received by the SSS, except In the absence of the spouse, the Commission
confinement In a hospital, in which case the claim shall appoint a representative.
for benefit must be filed within 1-year from the
last day of confinement. (If prescribed period is
not followed, advances made by the employer
may no longer be reimbursed.)
Maternity Leave Benefit

SOURCES OF FUNDS
A female employee who has paid at least 3
monthly contributions in the 12-month period Employees Contribution.
preceding the semester of her childbirth, or
miscarriage shall be paid a daily maternity benefit Employers Contribution.
equal to 100% of her average salary credit for 60
days or 78 days In case of cesarean delivery, Contribution of the Self-employed.
subject to the following conditions:
Government Contribution.
Employee notified her employer of her
pregnancy and probable date of birth, which
shad be transmitted by the employer to the REMITTANCE OF CONTRIBUTION
SSS.
Made by the employer - remitted to the SSS
The employer shall advance full payment within the 1st 10 days of the month or within such
within 30 days from filling of maternity leave. time the Commission may prescribe, otherwise
he shall pay an additional 3% per month. Failure
Payment of daily maternity benefits bars of refusal to pay shall not prejudice the right of
recovery under the sickness benefit for the the covered employee of his benefits. Action
same period. against the employer may be commenced within
20 years from the time delinquency Is known or
the assessment Is made by the SSS, or from the
LABOR LAW REVIEWER
time the benefit accrues, by court action or by That the State shall adopt an integrated and
issuing a warrant commanding to levy upon and comprehensive approach to health development
sell property. which shall endeavor to make essential goods,
health and other social services available to all
Self-employed - remits monthly contributions the people at affordable cost.
quarterly on such dates as the Commission may
specify. Priority for the needs of the underprivileged, sick,
elderly, disabled, women, and children shall be
METHOD OF COLLECTION recognized.
AND PAYMENT
It shall be the policy of the State to provide free
By cash, checks, stamps, coupons, tickets, or medical care to paupers.
other devices that the Commission may adopt.
In the pursuit of a National Health Insurance
EMPLOYMENT RECORDS Program, this Act shall adopt the following guiding
AND REPORTS principles:
Employers shall Immediately report to the Allocation of National Resources for Health;
SSS the names, ages, civil status, occupations, Universality; Equity; Responsiveness; Social
salaries and dependents of all his employees subject Solidarity; Effectiveness; Innovation; Devolution;
to compulsory coverage. Fiduciary Responsibility; Informed Choice; Maximum
Community Participation; Compulsory Coverage; Cost
Failure to do so, the employer shall pay to Sharing; Professional Responsibility of Health Care
the SSS damages, equal to the benefits to which the Providers; Public Health Services; Quality of Services;
employee would have been, entitled had his name Cost Containment; and, Care for the Indigent
been reported, except in case of pension benefits the
employer shall be liable to pay the SSS damages General Objectives
equal to 5 years pension, whichever is higher,
including dependent pension. Provide all citizens of the Philippines with the
mechanism to gain financial access to health
If contingency occurs within 30 days from services
the date of the employment: no 6-bility for damages.
Create the National Health Insurance Program,
Any person engaging the services of an hereinafter referred to as the Program, to serve
Independent contractor shall be subsidiarily liable with as the means to help the people pay for health
the contractor for any civil liability and shall require the care services.
posting of a surety bond.
Prioritize and accelerate the provision of health
Misrepresentation of employment records services to all Filipinos, especially that segment
and reports: employer shall pay to the SSS damages of the population who cannot afford such
equal to the difference between the amount of benefits services; and
to which the employee is entitled and the amount
payable. Establish the Philippine Health Insurance
Corporation, hereinafter referred to as the
Self-employed persons shall, within 30 days Corporation that will administer the Program at
from the 15' day he started the practice of his central and local levels.
profession or business, register and report to the SSS
his name, age, civil status, occupation and average
monthly net income and his dependents. THE NATIONAL HEALTH
INSURANCE PROGRAM
Purpose
REPUBLIC ACT NO.7875
AN ACT INSTITUTING A NATIONAL HEALTH The National Health Insurance Program
INSURANCE PROGRAM FOR ALL FILIPINOS AND shall provide health insurance coverage and ensure
ESTABLISHING THE PHILIPPINE HEALTH INSURANCE affordable, acceptable, available and accessible
CORPORATION health care services for all citizens of the Philippines,
FOR THE PURPOSE in accordance with the policies and specific provisions
of this Act.
DECLARATION OF PRINCIPLES This social insurance program shall serve as

AND POLICIES the means for the healthy to help pay for the care of
the sick and for those who can afford medical care to
Section 11, Article XIll of the 1987 subsidize those who cannot.
Constitution of the Republic of the Philippines
declares: Establishment
LABOR LAW REVIEWER
It shall initially consists of programs I and II health insurance coverage shall be given priority
of Medicare and be expanded progressively to by the corporation; and
constitute one universal health insurance program for
the entire population. All persons eligible for benefits as members of
other government initiated health insurance
The Program shall include a sustainable programs, community-based health care
system of funds constitution, collection, management organizations, cooperatives, or private non-profit
and disbursement for financing the availment of a health insurance plans shall be enrolled in the
basic minimum package and other supplementary Program upon accreditation by the Corporation
packages of health insurance benefits by a which shall devise and provide incentives to
progressively expanding proportion of the population. ensure that such accredited organizations will
benefit from their participation in the program.
Limitation
All indigents not enrolled in the Program shall
The Program shall be limited to paying for have priority in the use and availment of the
the utilization of health services by covered services and facilities of government hospitals,
beneficiaries or to purchasing health services in behalf health care personnel, and other health
of such beneficiaries. organizations: Provided, however, That such
government health care providers shall ensure
Prohibition that said indigents shall subsequently be enrolled
in the Program
It shall be prohibited from providing health
care directly, from buying and dispensing drugs and Health Insurance ID Card
pharmaceuticals, from employing physicians and other
professionals for the purpose of directly rendering The Corporation through its local office shall
care, and from owning or investing in health care issue a health insurance ID that shall be used for
facilities. purposes of identification, eligibility verification, and
utilization recording.
Coverage
The issuance of this ID card shall be
The National Health Insurance Program In accompanied by a clear explanation to the enrollee of
accordance with the principles of universality and his rights, privileges and obligations as a member.
compulsory coverage shall cover all citizens of the
Philippines. Provided, That the Program shall not be Lists of health care providers accredited by
made compulsory in certain provinces and cities until the Local Health Insurance Office shall likewise be
the Corporation shall be able to ensure that members attached thereto.
in such localities shall have reasonable access to
adequate and acceptable health care services. Residence
Enrollment A citizen can be under only one Local Health

Insurance Office that shall be located in the province
The process of enrollment shall include the or city of his place of residence. A person who
identification of beneficiaries, issuance of appropriate changes residence, becomes temporarily employed,
documentation specifying eligibility to benefits, and or for other justifiable reasons, is transferred to
indicating how membership was obtained or is being another locality should inform said Office of such
maintained. The enrollment shall proceed in transfer and subsequently transfer his Program
accordance with these specific policies: membership.
All persons currently eligible for benefits under Benefit Package

Medicare Program 1, including SSS and GSIS
members, retirees, pensioners and their The following categories of personal health
dependents, shall immediately and automatically services granted to the member or his dependents as
be made members of the National Health medically necessary or appropriate shall include:
Insurance Program;
Inpatient hospital care:
All persons eligible through health insurance
plans established by local governments as part of room and board;
Program II of Medicare or in accordance with the
provision s of this Act, including in indigent services of health care professionals
members, shall also be enrolled in the Program,
diagnostic, laboratory, and other medical
All persons eligible for benefits as member of examination services
local health insurance plans established by the
Corporation in accordance with the implementing use of surgical or medical equipment and
rules and regulations of this Act shall also be facilities
deemed to have enrolled in the Program.
Enrollment of persons who have no current prescription drugs and biologicals;
LABOR LAW REVIEWER
Retirees and pensioners of the SSS and CSIS

inpatient education packages; prior to the effectivity of this Act
Outpatient care: Members who reach the age of retirement as

provided for by law and have paid at least one
services of health care professionals; hundred twenty (120) monthly contributions; and
diagnostic, laboratory, and other Enrolled indigents

medical examination services;
personal preventive services; and THE PHILIPPINE HEALTH

INSURANCE CORPORATION
prescription drugs and biologicals,
The Corporation shall have the status of a
Emergency and transfer services, and tax-exempt government corporation attached to the
Department of Health for Policy coordination and
Such other health care services that the guidance.
Corporation shall determine to be
appropriate and cost-effective Exemption from Taxes and Duties: The
Corporation shall be exempt from the payment of
Excluded Personal Health Services taxes on all contributions thereto and all accruals on
its in come or investment earnings,
The benefits granted under this Act shall not
cover expenses for the services enumerated Powers and Functions
hereunder except when the Corporation, after
actuarial studies, recommend their inclusion subject to The Corporation shall have the following
the approval of the Board: powers and functions:
Non-prescription drugs and devices; To administer the National Health Insurance

Program
Outpatient psychotherapy and counseling for
mental disorders; To formulate and promulgate policies for the
sound administration of the Program.
Drug and alcohol abuse or dependency treatment
To set standards, rules, and regulations
Cosmetic surgery, necessary to ensure quality of care, appropriate
utilization of services, fund viability, member
Home and rehabilitation services, satisfaction, and overall accomplishment of
Program objectives.
Optometric services;
To formulate and implement guidelines on
Normal obstetrical delivery, and contributions and benefits, cost containment and
quality assurance; and health care provider
Cost-ineffective procedures which shall be arrangements, payment methods; and referral
defined by the Corporation. systems.
Entitlement to Benefit
To establish branch offices.
A member whose premium contributions for
at least three (3) months have been paid within the six To receive and manage grants, donations, and
(6) months prior to the first day of his or his other forms of assistance.
dependents' availment shall be entitled to the benefits
of the Program: To sue and be sued in court.
Provided, That such member can show that he To acquire property; real and personal, which
contributes thereto with sufficient regularity as may be necessary or expedient for the attainment
evidenced in their health insurance ID card: of the purposes of this Act.
Provided, further, That he is not currently subject To collect; deposit invest administer, and disburse
to legal penalties the National Health Insurance Fund in
accordance with the provisions of this Act.
The following need not pay the monthly
contributions to be entitled to the Program's To negotiate and enter into contracts with health
benefits: care institutions, professionals, and other
persons, juridical or natural, regarding the pricing
payment mechanisms, design and
LABOR LAW REVIEWER
implementation of administrative and operating To summon the parties to a controversy, issue

systems and procedures, financing & and subpoenas requiring the attendance and
delivery of health services. testimony of witnesses or the production of
documents and other materials necessary to a
To authorize Local Health Insurance Offices to just determination of the case under
negotiate and enter into contracts in the name investigation.
and on behalf of the Corporation with any
accredited government or private sector health To suspend temporarily, revoke permanently, or
provider organization, including but not limited to restore the accreditation of a health care provider
health maintenance organizations, cooperatives or the right to benefits of a member and/or
and medical foundations, for the provision of at impose fines after due notice and hearing The
least the minimum package of personal health decision shall immediately be executory; even
services prescribed by the Corporation. pending appeal, when the public interest so
requires and as may be provided for in the
To determine requirements and issue guidelines implementing rules and regulations. Suspension
for the accreditation of health care providers for of accreditation shall not exceed twenty-four (24)
the Program in accordance with this Act. months. Suspension of the fights of members
shall not exceed six (6) months.
To supervise the provision of health benefits with
the power to inspect medical and financial The revocation of a health care provider's
records of health care providers and patients who accreditation shall operate to disqualify him from
are participants in or members of the Program, obtaining another accreditation in his own name,
and the power to enter and inspect accredited under a different name, or through another
health care institutions, subject to the rules and person, whether natural or juridical.
regulations to be promulgated by the
Corporation.
The Corporation shall not be bound by the
To organize its office, fix the compensation of and technical rules of evidence.
appoint personnel as may be deemed necessary
and upon the recommendation of the president of THE BOARD OF DIRECTORS
the Corporation.
Composition
To submit to the President of the Philippines and
to both Houses of Congress its Annual Report The Corporation shall be governed by a
which shall contain the status of the National Board of Directors composed of eleven members as
Health Insurance Fund, its total disbursements, follows:
reserves, average costings to beneficiaries, any
request for additional appropriation, and other The Secretary of Health
data pertinent to the implementation of the
Program and publish a synopsis of such report in The Secretary of Labor and Employment or his
two (2) newspapers of general circulation. representative.
The Secretary of the Interior and Local

To keep records of the operations of the Government or his representative.
Corporation and investments of the National
Health Insurance Fund. The Secretary of Social Welfare and
Development or his representative.
To perform such other acts as it may deem
appropriate for the attainment of the objectives of The President of the Corporation.
the Corporation and for the proper enforcement
of the provisions of this Act. A representative of the labor sector.
QuasiJudicial Powers A representative of employers.
To conduct investigations for the determination of The SSS Administrator or his representative.
a question, controversy, complaint, or unresolved
grievance brought to its attention, and render The GSIS General Manager or his
decisions, orders or resolutions thereon. It shall representative.
proceed to hear and determine the case even in
the absence of any party who has been properly A representative of the self-employed sector.
served with notice to appear. It shall be done in
public or in executive session; adjourn its
Representatives of health care providers.
hearings at any time and place; refer technical
matters or accounts to an expert and to accept its
The Secretary of Health shall be the ex officio
reports as evidence.
Chairperson while the President of the
LABOR LAW REVIEWER
Corporation shall be the Vice-Chairperson of the experience in the field of health care financing and
Board. corporate management.
Appointment and Tenure Salary
The President of the Philippines shall Salary is fixed by the Board with the
appoint the Members of the Board upon the approval of the President of the Philippines, payable
recommendation of the Chairman of the Board and in from the funds of the corporation.
consultation with the sectors concerned.
Prohibition
Members of the Board shall have a term of
four (4) years each, renewable for a maximum of two To avoid conflict of interest, the President
(2) years, except for members whose terms shall be must not be involved in any health care institution as
co-terminus with their respective positions in owner or member of its board.
government.
Any vacancy in the Board shall be filled in

the manner, which the original appointment was made HEALTH FINANCE POLICY RESEARCH
and the appointee shall serve only the unexpired term
of his predecessor. Among the staff departments that will be
established by the Corporation shall be the Health
Finance Policy Research Department which shall have
the following duties and functions:
Meetings and Quorum
Development of broad conceptual framework for
The Board shall hold regular meetings at implementation of the Program through a national
least once a month. Special meetings may be health finance master plan to ensure sustained
convened at the call of the chairperson or by a investments in health care, and to provide
majority of the members of the Board. guidance for additional appropriations from the
National Government.
The presence of six (6) voting members
shall constitute a quorum In the absence of the Conduct of researches and studies toward the
Chairperson and Vice Chairperson, a temporary development of policies necessary to ensure the
presiding officer shall be designated by the majority of viability, adequacy and responsiveness of the
the quorum. Program.
PRESIDENT OF THE CORPORATION Review, evaluation, and assessment of the

Program's impact on the access to, as well as the
Appointment and Tenure quality and cost of, health care in the country.
The President of the Philippines shall Periodic review of fees, charges, compensation
appoint for a non-renewable term of six (6) years the rates, capitation rates, medical standards, health
President of the Corporation, upon the outcomes and satisfaction of members, benefits,
recommendation of the Board. and other matters pertinent to the operations of
the Program.
The President shall not be removed from
office except in accordance with existing laws. Comparison in the delivery, quality, use, and cost
of health care services of the different Offices.
Duties and Functions Submission for consideration of program of
quality assurance, utilization review, and
The President shall have the duty of technology assessment.
advising the Board and carrying into effect its policies
and decisions. His functions are as follows:
Submission of recommendations on policy and
operational issues that will help the Corporation
To act as the chief executive officer of the meet the objectives of this Act
Corporation.
To be responsible for the general conduct of the LOCAL HEALTH INSURANCE OFFICE
operations and management functions of the
corporation and for other duties assigned to him Establishment
by the Board.
The Corporation shall establish a Local
Qualifications Health Insurance Office, in every province or
chartered city, or wherever it is deemed practicable, to
Must be a Filipino citizen; and must possess bring its services closer to members of the Program.
adequate and appropriate training and at least 5 years
LABOR LAW REVIEWER
However, one office may serve the needs of To pay fees, as necessary, for claims review and
more than one province or city when the merged processing when such are conducted by the
operations will result in lower administrative cost and central office of the Corporation or by any of its
greater cross-subsidy between rich and poor localities. contractors.
Provinces and cities where prospective

members are organized shall receive priority in the To establish referral systems and network
establishment of local health insurance offices. arrangements with other offices, as may be
necessary in following guidelines set by the
Functions Corporation.
Each Office shall have the following powers To establish mechanisms by which private and
and functions: public sector health facilities and human
resources may be shared in the interest of
To consult and coordinate, as needed, with the optimizing the use of health resources.
local government units within its jurisdiction in the
implementation of the program. To support the management information system
requirements of the Corporation.
To recruit and register members of the Program
from all areas with in its jurisdiction. To serve as the first level for appeals and
grievance cases.
To collect an d receive premiums and other
payment contribution s to the Program. To tap community-based volunteer health
workers and barangay officials, if necessary; for
To maintain and update the membership eligibility member recruitment. Premium collection an d
list at community levels. similar activities, an d to grant such workers
incentives according to the guidelines set by the
To supervise the conduct of means testing which Corporation and in accordance with applicable
shall be based on the criteria set by the laws. However, the incentives for the barangay
Corporation, and undertaken by the Barangay officials shall accrue to the barangay and not to
Captain in coordination with the social welfare the said officials.
officer and community-based health care
organizations to determine the economic status To participate in information and education
of all households and individuals, including those activities that are consistent with the
who are indigent. government's priority programs on disease
prevention and health promotion.
To issue health insurance ID cards to persons
whose premiums have been paid according to To prepare an annual report according to
the requirements of the Office and the guidelines guidelines set by the Board and to submit the
issued by the Board. same to the central office of the Corporation.
To recommend to the Board premium schedules THE NATIONAL HEALTH

that provide for lower rates to be paid by INSURANCE FUND
members whose dependents include those with
reduced probability of utilization, as in fully Composition
immunized children.
National Health Insurance Fund shall consist
To recommend to the Board a contribution of:
schedule which specifies contribution levels by
individuals and households, and a Contributions from Program members.
corresponding uniform package of personal
health service benefits which is at least equal to Current balances of the Health Insurance Funds
the minimum package of such benefits of the SSS and the GSIS collected under the
prescribed by the Board as applying to the nation Philippine Medical Care Act of 1969, as
amended, including arrearages of the
To grant or deny accreditation to health care Government of the Philippines with the GSIS for
providers, within a period not exceeding sixty (60) the said Fund.
days whenever applicable in accordance
with the rules and guidelines of the Corporation. Other appropriations earmarked by the national
and local governments purposely for the
implementation of the Program.
To process, review and pay the claims of
providers, within a period of not exceeding 60 Subsequent appropriations provided for under
days whenever applicable in accordance with the Sections 46 and 47 of this Act.
rules and guidelines of the Corporation.
Donations and grants-in-aid.
LABOR LAW REVIEWER
The corporation is authorized to charge the

All accruals thereof. various funds under its control for the costs of
administering the Program. Such costs may
Components include administration, monitoring marketing and
promotion, research and development audit and
The National Health Insurance Fund shall
have the following components: Evaluation, information services, and other
necessary activities for the effective management
The Basic Benefit Fund of the Program. The total annual costs for these
shall not exceed twelve percent (12%) of the total
This fund shall finance the availment of the basic contributions, including government contributions
minimum benefit package by eligible to the Program and not more than three percent
beneficiaries. All liabilities associated with the (3%) of the investment earnings collected during
extension of entitlement to the basic minimum the immediately preceding year.
benefit package to the enrolled population shall
be born by the basic benefit fund. Reserve Fund
Supplementary Benefit Funds. The Corporation shall set aside a portion of

Its accumulated revenues not needed to meet the cost
These are separate and distinct supplementary of the current year's expenditures as reserve funds:
benefit funds created by the Corporation as
eligible for use to provide supplementary Provided, That the total amount of reserves shall
coverage to various groups of the population not exceed a ceiling equivalent to the amount
enjoying the basic benefit coverage as are actuarially estimated for two years' projected
affordable by their respective funding sources. Program expenditures
Each supplementary benefit fund shall finance
the extension and availment of additional benefits Provided, further, That whenever actual reserves
not included in the basic minimum benefit exceed the required ceiling at the end of the
package but approved by the Board. Whatever Corporation's fiscal year, the Program's benefits
amounts are available after deducting the costs shall be increased or member contributions
of providing the basic minimum benefit package, decreased prospectively in order to adjust
including costs of direct benefit payments, all expenditures or revenues to meet the required
costs of administration, and provision of ceiling for reserve funds.
adequate reserves shall finance such
supplementary benefits. All liabilities associated
with the extension of supplementary benefits to FINANCING
the defined group of enrollees shall be born
exclusively by the respective supplementary CONTRIBUTIONS
benefit fund.
All members of the program shall contribute
In accordance with the principles of equity and to the Fund, in accordance with a reasonable,
social solidarity, supplementary benefit funds equitable and progressive contribution schedule to be
shall be maintained for not more than five (5) determined by the Corporation on the basis of
years, after which, such funds shall be merged applicable actuarial studies and in accordance with
into the basic benefit fund the following guidelines:
Formal sector employees and current

Medicare employees and their employers shall
continue paying the same monthly contributions as
provided for by law until such time that the
Corporation shall have determined the contribution
schedule provided; that their monthly contributions
Financial Management shall not exceed 3% from their monthly salaries.
The use, disposition, investment Contributions of self-employed members

disbursement administration and management of the shall be based primarily on household earnings and
National Health Insurance Fund, including any assets; their total contributions for one year shall not
subsidy, grant or donation received for program however, exceed three percent (3%) of their estimated
operations shall be governed by resolution of the actual net income for the preceding year.
Board of Directors of the Corporation, subject to the
following limitations: Contributions made in behalf of indigent
members shall not exceed the minimum contributions
All funds under the management and control of set for employed members.
the Corporation shall be subject to all rules and
regulations applicable to public funds. Payment for Indigent Contributions
LABOR LAW REVIEWER
Contributions for indigent members shall be General manager,

subsidized partially by the local government unit
where the member resides. The Corporation shall Managing director or partner
provide counterpart financing equal to the LGU's
subsidy for indigents: Provided, That in the case of
fourth, fifth and sixth class LGUs, the National
Government shall provide up to ninety percent (90%)
of the subsidy for indigent3 for a period not exceeding PRESIDENTIAL DECREE NO. 851
five (5) years. The share of the LGUs shall be REQUIRING ALL EMPLOYERS TO PAY THEIR
progressively increased until such time that its share EMPLOYEES A 13TH MONTH PAY,
becomes equal to that of the National Government. As amended by Memorandum Order No. 28.
All employers are required to pay all their

rank-and-file employees a 13th month pay not later
REPUBLIC ACT NO. 8188 than December 24 of every year.
AN ACT INCREASING THE PENALTY AND IMPOSING
DOUBLE INDEMNITY FOR VIOLATION OF THE RATIONALE
PRESCRIBED INCREASES OR ADJUSTMENTS IN THE
WAGE RATES, AMENDING FOR THE PURPOSE It is necessary to further protect the level of real
SECTION TWELVE OF REPUBLIC ACT NUMBERED wages from the ravage of world-wide inflation;
SIXTY-SEVEN HUNDRED TWENTY-SEVEN,
OTHERWISE KNOWN AS THE WAGE RATIONALIZATION There has been no increase in the legal minimum
ACT wage rates since 1970;
Approved: June 11, 1996
The Christmas season is an opportune time for
Any person, corporation, trust, firm, society to show its concern for the plight of the
partnership, association or entity which refuses or fails working masses so they may properly celebrate
to pay any of the prescribed increases or adjustments Christmas and New Year.
in the wage rates made in accordance with this Act
shall be punished by: REVISED GUIDELINES ON THE
IMPLEMENTATION OF THE 13TH
A fine not less than Twenty-five thousand pesos MONTH PAY LAW
(P25,000) nor more one hundred thousand pesos (November 16, 1987)
(P100,000) or
REMOVAL OF SALARY CEILING
Imprisonment of not less than two (2) years nor
more than four (4) years, or Before its modification by Memorandum
Order, P.D. No. 851 excludes from entitlement to the
Both such fine and imprisonment at the discretion 13th month pay those employees who were receiving
of the court a basic salary of more than P1,000.00 a month. With
the removal of the salary ceiling of P1,000.00, all rank
Provided, that any person convicted under and file employees are now entitled to a 13th month
this Act shall not be entitled to the benefits provided pay regardless of the amount of basic salary that they
for under the Probation Law. receive in a month if their employers are not otherwise
exempted from the application of P.D. No. 851.
The employer concerned shall be ordered to
pay an amount equivalent to double the unpaid Such employees are entitled to the benefit
benefits owing to the employees regardless of their designation or employment status,
and irrespective of the method by which their wages
Provided, that payment of indemnity shall are paid, provided that they have worked for at least
not absolve the employer from the criminal liability one (1) month during a calendar year.
imposable under this Act.
If the violation is committed by a RANK-AND FILE EMPLOYEES

corporation, trust or firm, partnership, association or
any other entity, the penalty of imprisonment shall be The Labor Code distinguishes a rank-and-
imposed upon the entity's responsible officers, file employee from a managerial employee.
including, but not limited to:
It provides that a managerial employee is
The president, one who is vested with powers of prerogatives to lay
down and execute management policies and/or to
Vice-president, hire, transfer, suspend, lay-off, recall discharge, assign
or discipline employees, or to effectively recommend
Chief executive officer, such managerial actions.
LABOR LAW REVIEWER
All employees not falling within this definition For establishments with less than 30
are considered rank-and-file employees. employees and paid-up capital of P500,000 or less,
the integration of COLAs shall be as follows: P4.50
The above distinction shall be used as guide effective on 1 May 1987; P4.50 on 1 October 1987;
for the purpose of determining who are rank-and-file and P8.00 effective 1 January 1988.
employees entitled to the mandated 13th month pay.
Thus, in the computation of the 13th month
EXEMPTED EMPLOYERS pay for 1987, the COLAs integrated into the basic pay
shall be included as of the date of their integration.
The Government and any of its political Where the total P17.00 daily COLA was
subdivisions, including government-owned and integrated effective 1 May 1987 or earlier the inclusion
controlled corporations, excepts those of said COLA as part of the of the basic pay for the
corporations operating essentially as private purpose of computing the 13th month pay shall be
subsidiaries of the Government; reckoned from the date of actual integration.
Employers already paying their employees a 13th BASIC SALARY

month pay or more in a calendar year or its
equivalent at the time of this issuance; The "basic salary" of an employee for the
purpose of computing the 13th month pay shall
The term "its equivalent" as used herein shall include all remunerations or earning paid by this
include: Christmas bonus, Mid-year bonus, Cash employer for services rendered but does not include
bonuses and Other payments amounting to not allowances and monetary benefits which are not
less than 1/12 of the basic salary but shall not considered or integrated as part of the regular or basic
include cash and stock dividends, cost of living salary, such as:
allowances and all other allowances regularly
enjoyed by the employee, as well as non- The cash equivalent of unused vacation and sick
monetary benefits. Where an employer pays less leave credits,
than required 1/12th of the employees basic
salary, the employer shall pay the difference. Overtime, premium, night differential and holiday
pay, and
Employers of household helpers and persons in
the personal service of another in relation to such Cost-of-living allowances.
workers; and
However, these salary-related benefits
Employers of those who are paid on purely should be included as part of the basic salary in the
commission, boundary, or task basis, and those computation of the 13th month pay if by individual or
who are paid a fixed amount for performing collective agreement, company practice or policy, the
specific work, irrespective of the time consumed same are treated as part of the basic salary of the
in the performance thereof, except where the employees.
workers are paid on piece-rate basis in which
case the employer shall grant the required 13th TIME OF PAYMENT
month pay to such workers.
The required 13th month pay shall be paid
WORKERS PAID ON PIECE-RATE BASIS not later than December 24 of each year.
shall refer to those who are paid a standard
amount for every piece or unit of work produced An employer, however, may give to his
that is more or less regularly replicated, without employees one half () of the required 13th month
regard to the time spent in producing the same. pay before the opening of the regular school year and
the other half on before the 24th of December of every
AMOUNT OF PAYMENT year.
The minimum 13th month pay required by The frequency of payment of this monetary
law shall not be less than one-twelfth of the total basic benefit may be the subject of agreement between the
salary earned by an employee within a calendar year. employer and the recognized/collective bargaining
agent of the employees.
For the year 1987, the computation of the
13th month pay shall include the cost of living 13TH MONTH PAY FOR CERTAIN
allowances (COLA) integrated into the basic salary of TYPES OF EMPLOYEES:
a covered employee pursuant to Executive Order 178.
Employees Paid by Results
E.O. No. 178 provides, among other things,
that the P9.00 of the daily COLA of P17.00 for non- Employees who are paid on piece work
agricultural workers shall be integrated into the basic basis are by law entitled to the 13th month
pay of covered employees effective 1 May 1987, and pay.
the remaining P8.00 effective 1 October 1987.
Employees who are paid a fixed or
guaranteed wage plus commission are also
LABOR LAW REVIEWER
entitled to the mandated 13th month pay, favorable practice being enjoyed by the employee at
based on their total earnings during the the time of promulgation of this issuance.
calendar year, i.e., on both their fixed or
guaranteed wage and commission.
Those with Multiple Employers Republic Act No. 8187

THE PATERNITY LEAVE ACT OF 1996
Government employees working part time in Effectivity Date: July 5, 1996
a private enterprise, including private
educational institutions, as well as Every married male employee in the private
employees working in two or more private and public sectors shall be entitled to a paternity leave
firms, whether on full or part time basis, are of seven (7) days with full pay for the first four (4)
entitled to the required 13th month pay from deliveries of the legitimate spouse with whom he is
all their private employers regardless of their cohabiting.
total earnings from each or all their
employers. NOTIFICATION REQUIREMENT
Private School Teachers The male employee applying for paternity

leave shall notify his employer of the pregnancy of his
Private school teachers, including faculty legitimate spouse and the expected date of such
members of universities and colleges, are delivery.
entitled to the required 13th month pay,
regardless of the number of months they DELIVERY shall include childbirth or
teach or are paid within a year, if they have miscarriage.
rendered service for at leas one (1) month
within a year. PATERNITY LEAVEthe benefits granted
to a married male employee allowing him not to report
for work for seven (7) days but continuous to earn the
13TH MONTH PAY OF RESIGNED compensation therefor, on the condition that his
OR SEPARATED EMPLOYEE spouse has delivered a child or suffered a miscarriage
for purposes of enabling him to effectively lend
An employee who has resigned or whose support to his wife in her period of recovery and/or in
services were terminated at any time before the time the nursing of the newly-born child.
for payment of the 13th month pay is entitled to this
monetary benefit in proportion to the length of time he PENALTY FOR VIOLATION
worked during the year, reckoned from the time he
started working during the calendar year up to the A fine not exceeding P25,000 or
time of his resignation or termination from the service. imprisonment of not less than 30 days nor more than
6 months shall be imposed on any person,
Thus, if he worked only from January up to corporation, trust, form, partnership, association or
September his proportionate 13th month pay should entity found violating this Act or the rules and
be equivalent of 1/12 his total basic salary he earned regulations promulgated thereunder.
during that period.
If the violation is committed by a
The payment of the 13th month pay may be corporation, trust, or firm, partnership, association, or
demanded by the employee upon the cessation of any other entity, the penalty of imprisonment shall be
employer-employee relationship. This is consistent imposed on the entity's responsible officers, including
with the principle of equity that as the employer can but not limited to:
require the employee to clear himself of all liabilities
and property accountability, so can the employee The President
demand the payment of all benefits due him upon the
termination of the relationship. Vice President
NON-INCLUSION IN REGULAR WAGE Chief Executive Officer

The mandated 13th month pay need not be General Manager
credited as part of regular wage of employees for
purposes of determining overtime and premium pays, Managing Director or Partner
fringe benefits insurance fund, Social Security,
Medicare and private retirement plans.
Directly responsible therefor.
PROHIBITIONS AGAINST REDUCTION OR
NON-DIMINUTION CLAUSE
ELIMINATION OF BENEFITS
Nothing in this Act shall be construed to
Nothing herein shall be construed to
reduce any existing benefits of any form granted
authorize any employer to eliminate, or diminish in any
under existing laws, decrees, executive orders, or any
way, supplements, or other employee benefits or
LABOR LAW REVIEWER
contract, agreement or policy between employer and

employee. Provided further, this benefit shall be availed
of not later than sixty (60) days after the date of said
RULES IMPLEMENTING THE PATERNITY delivery.
LEAVE ACT FOR THE PRIVATE SECTOR
BENEFITS
Definitions
The employee is entitled to seven (7)
EMPLOYEEany person who performs working days paternity leave with pay, consisting of
services for an employer and receives compensation basic salary, all allowances and other monetary
therefor, provided an employer-employee relationship benefits.
exists between them.
NON-CONVERSION OF BENEFITS
DELIVERYrefers to childbirth,
miscarriage or abortion In the event that the paternity leave benefit
is not availed of, said leave shall not be convertible to
SPOUSErefers to the lawful wife; a cash.
woman who is legally married to the male employee
concerned
COHABITINGrefers to the obligation of

the husband and wife to live together PROVISIONS OF THE COMPREHENSIVE
DANGEROUS DRUGS ACT OF 2002
CONDITIONS FOR ENTITLEMENT (Republic Act No. 9165)
The married male employee is employed at the IN RELATION TO LABOR:

time of delivery of the child;
ARTICLE III
He has notified his employer of the pregnancy of Dangerous Drugs Test and Record Requirements
his wife and her expected date of delivery;
The following shall be subjected to undergo
His wife has given birth, suffers a miscarriage or drug testing:
abortion.
Officers and employees of public and private
NOTIFICATION offices
As soon as the married male employee learns Officers and employees of public and private
that his spouse is pregnant, he shall inform his offices, whether domestic or overseas, shall be
employer of such pregnancy and the expected subjected to undergo a random drug test as
date of delivery within a reasonable period of contained in the company's work rules and
time. regulations, which shall be borne by the
employer, for purposes of reducing the risk in the
The employee shall accomplish a Paternity workplace. Any officer or employee found positive
Notification Form to be provided for by the for use of dangerous drugs shall be dealt with
employer and submit the same to the latter, administratively which shall be a ground for
together with a copy of his marriage contract; or suspension or termination, subject to the
where not applicable, any proof of marriage. provisions of Article 282 of the Labor Code and
The Notification Requirement shall not apply in pertinent provisions of the Civil Service Law;
cases of miscarriage or abortion.
ARTICLE V
Any employee who has availed of the paternity Promotion of a National Drug-Free Workplace
leave benefits shall within a reasonable period of Program with the Participation of Private and
time, submit a copy of the birth certificate of the Labor Sectors and the Department of Labor and
newly-born child, death or medical certificate in Employment
case of miscarriage or abortion, duly signed by
the attending physician or midwife showing the
actual date of childbirth, miscarriage or abortion, Drug-Free Workplace
as the case may be.
It is deemed a policy of the State to promote
AVAILMENT drug-free workplaces using a tripartite approach. With
the assistance of the Board, the Department of Labor
The paternity benefits may be enjoyed by and Employment (DOLE) shall develop, promote and
the qualified employee before, during or after the implement a national drug abuse prevention program
delivery by his wife. in the workplace to be adopted by private companies
with ten (10) or more employees. Such program shall
However, the total number of days shall not include the mandatory drafting and adoption of
exceed seven (7) working days for each delivery. company policies against drug use in the workplace in
LABOR LAW REVIEWER
close consultation and coordination with the DOLE, ARTICLE 143 OF PRESIDENTIAL DECREE NO. 442, AS
labor and employer organizations, human resource AMENDED
development managers and other such private sector
organizations.
MINIMUM WAGE OF HOUSEHELPERS
Guidelines for the National Drug-Free Workplace
Program Subparagraphs 1,2,3, Article 143 of
Presidential Decree No. 442, as amended, otherwise
The Board and the DOLE shall formulate the known as the Labor Code of the Philippines are
necessary guidelines for the implementation of the hereby amended to read as follows:
national drug-free workplace program. The amount
necessary for the implementation of which shall be Art. 143 Minimum Wage House helpers shall be paid the
included in the annual General Appropriations Act. following minimum wage rates:
ARTICLE VI Eight hundred pesos (P800.00) a month for

Participation of the Private and Labor Sectors in house helpers in Manila, Quezon, Pasay and
the Enforcement of this Act Caloocan cities and municipalities of Makati, San
Juan, Mandaluyong, Muntinlupa, Navotas,
Labor Organizations and the Malabon, Paranaque, Las Pinas, Pasig, Marikina,
Private Sector Valenzuela, Taguig and Pateros in Metro Manila
and in highly urbanized cities;
All labor unions, federations, associations,
or organizations in cooperation with the respective Six hundred fifty pesos (P650.00) a month for
private sector partners shall include in their collective those in other chartered cities and first-class
bargaining or any similar agreements, joint continuing municipalities, and
programs and information campaigns for the laborers
similar to the programs provided under Section 47 of Five hundred fifty pesos (P550.00) a month for
this Act with the end in view of achieving a drug free those in other municipalities.
workplace.
Provided, that the employers shall review
the employment contracts of their house helpers every
Government Assistance three years with the end in view of improving the
terms and conditions thereof.
The labor sector and the respective partners
may, in pursuit of the programs mentioned in the Provided, further, that those house helpers
preceding Section, secure the technical assistance, who are receiving at least One thousand pesos
such as but not limited to, seminars and information (P1,000.00) shall be covered by the Social Security
dissemination campaigns of the appropriate System (SSS) and be entitled to all the benefits
government and law enforcement agencies. provided thereunder.
ARTICLE IX PENALTIES
Dangerous Drugs Board and
Philippine Drug Enforcement Agency Any violation of any provision of this Act
shall be punished with an imprisonment of not more
Composition of the Board than three months or a fine of not more than Two
thousand pesos (P2,000.00), or both at the discretion
One of the other twelve (12) members who of the court.
shall be ex officio members of the Board shall be the
Secretary of the Department of Labor and Approved: August19,1993
Employment or his/her representative;
Powers and Duties of the Board
The board shall design and develop, jointly

with the DOLE and in consultation with labor and
employer groups as well as non government
organizations a drug abuse prevention program in the
workplace that would include a provision for employee REPUBLIC ACT NO. 7658
assistance programs for emotionally-stressed AN ACT PROHIBITING THE EMPLOYMENT OF
employees. CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC AND
PRIVATE UNDERTAKINGS, AMENDING FOR THIS
PURPOSE SECTION 12,
ARTICLE VIII OF RA 7610
REPUBLIC ACT NO. 7655 NON-EMPLOYMENT OF CHILDREN

AN ACT INCREASING THE MINIMUM WAGE OF BELOW AGE 15
HOUSEHELPERS; AMENDING FOR THE PURPOSE
LABOR LAW REVIEWER
In the above exceptional cases, the

Section 12, Article VIII of RA 7610 (Special employer shall first secure, before engaging such
Protection of Children Against Child Abuse, child, a work permit from the DOLE, which shall
Exploitation and Discrimination Act) is hereby ensure observance of the above requirements.
amended.
Employment of Children The DOLE shall also, by appropriate

regulations, issue standards governing the hours of
Children below 15 years of age shall not be employed work and time of day that children may be allowed to
except: work.
When the child works directly under the sole PENALTIES

responsibility of his parents or legal guardian who
employs members of his family only (those Any person who shall violate any provision
referred to under Article 150 of the Family Code) of Article 12 of RA 7610 as amended by RA 7658,
shall suffer the penalty of a fine of not less than P1,
The employment does not endanger the childs 000 but not more than P10, 000 or imprisonment of
life, safety, health and morals; not less than 3 months but not more than 3 years, or
both at the discretion of the court.
The employment does not impair the childs In case of repeated violations, the offenders
normal development; license to operate shall be revoked.
The parent or legal guardian provides the said

minor child with the primary and/or secondary
education prescribed by the DECS. REPUBLIC ACT 7323
AN ACT TO HELP POOR BUT DESERVING STUDENTS
Where the childs employment or participation in PURSUE THEIR EDUCATION BY ENCOURAGING THEIR
public entertainment or information through EMPLOYMENT DURING SUMMER AND/OR CHRISTMAS
cinema, theater, radio or television is essential, VACATIONS, THROUGH INCENTIVES GRANTED TO
provided that, The employment does not involve EMPLOYERS, ALLOWING THEM TO PAY ONLY SIXTY
advertisements or commercials promoting PER CENTUM OF THEIR SALARIES OR WAGES AND
alcoholic beverages, intoxicating drinks, tobacco THE FORTY PER CENTUM THROUGH EDUCATION
and its by-products or exhibiting violence; VOUCHERS TO BE PAID BY THE GOVERNMENT,
PROHIBITING AND PENALIZING THE FILING OF
There is a written contract concluded by the FRAUDULENT OR FICTITIOUS CLAIMS, AND FOR
childs parents or legal guardian, with the express OTHER PURPOSES.
agreement of the child concerned, if possible,
and the approval of the DOLE. Said contract shall SPECIAL PROGRAM FOR
bear the express agreement of the child THE EMPLOYMENT OF STUDENTS
concerned if possible, and shall state the nature
or full description of the job and the justification BACKGROUND
that the childs employment or participation is
essential; and provided that the following The SPES is a component of the presidents
requirements in all instances are strictly complied Kabataan 2000 Program along with the Work
with before the issuance of the work permit: Appreciation Program (WAP) of the Department of
Labor and Employment.
The employer shall submit a written undertaking
that he/she will ensure the protection, health, OJECTIVE
safety, morals and normal development of the
child; and that The objective of SPES is to develop the
intellectual capacities of children of poor families and
The employer shall institute measures to prevent harness their potentials for the countrys well being.
the childs exploitation or discrimination such as Specifically the program aims to help poor but
payment of minimum wage, hours of work and deserving students pursue their education by
other terms and conditions required by law; providing income or augment their income through
encouraging their employment during summer and/or
The employer shall formulate and implement, Christmas vacations.
subject to the approval and supervision of
competent authorities, a continuing program for For this purpose poor but deserving
training and skills acquisition of the child. students refer to those whose parents combined
incomes, together with their income, if any, do not
When the child works directly under the sole exceed P36, 000.00 per annum.
responsibility of his parents or legal guardian
As for the employer, he/she will have an
opportunity to help in the education of poor students
LABOR LAW REVIEWER
and pay only 60% of the salary of the student-

employee. In case the amount of the voucher exceeds
the amount presented by the educational institution for
COVERAGE payment, the DOLE shall refund the balance amount.
It is open to all qualified high school, college The voucher shall not be transferable except
or vocational students or drop-outs and interested in the following cases:
employers.
When the payee thereof dies or
QUALIFICATIONS
For a justifiable cause stops in his studies in
Students and Drop-outs which case it can be transferred to his brothers or
sisters. If there be none, it shall be paid to his
15-25 years old heirs or to the payee himself, as the case may
be.
Enrolled during the present school year/term
or during the school year/term immediately OTHER BENEFITS AND INCENTIVES
preceding the summer vacation.
The student-employee shall be entitled to
Drop-out who intend to continue his other monetary benefits and incentives provided under
education existing laws specifically SSS and Medicare
contributions.
Parents combined net income after tax,
including his own, if any, does not exceed SPECIAL PROVISION
P36, 000 per annum
Nothing in these rules shall be construed to
Garnered a passing grade during the school justify an employer in terminating the services of
year/term referred above or in case of a regular employees to accommodate the student-
drop-out, the last year/term attended employee or diminish the benefits of its regular
employees.
His/her parents has been displaced or about
to be displaced due to business closure or FILING OF FRAUDULENT OR
work stoppage provided he/she meets 1, 2, FICTITIOUS CLAIM
and 5 above
Any person or entity who shall make any
Employer fraudulent or fictitious claim under this Act, regardless
of whether payment has been made, shall upon
Any person or entity who has employed at conviction be punished by imprisonment of not less
least 50 workers at any given time during than 6 months and not more than 1 year and a fine of
the past 12 months. not less than P10, 000, without prejudice to their
prosecution and punishment for any other offense
For this purpose employed workers shall punishable under the Revised Penal Code or any
refer to all regular, seasonal, temporary, other penal statute.
casual and workers of contracted out
services of persons and entities. In case of partnerships or corporations, the
Participating entities shall include private managing partner, general manager, or chief
establishments, national and local executive officer, as the case may be, shall be
government units, government-owned or criminally liable.
controlled corporations, labor unions and
other similar organizations and associations, Approved: March 30, 1992
among others.
PAYMENT OF SALARY
The student is paid a salary which is at least

equal to the applicable minimum wage provided by
law and other applicable labor rules and regulations.
Sixty percent of said salary shall be paid by

the employer in cash and 40% by the Government in
the form of a voucher which shall be applicable in the REPUBLIC ACT NO. 7610
payment for his tuition fees and books in any AN ACT PROVIDING FOR STRONGER DETERRENCE
educational institution for secondary, tertiary, AND SPECIAL PROTECTION AGAINST CHILD ABUSE,
vocational or technical education. The amount of the EXPLOITATION AND DISCRIMINATION, PROVIDING
education voucher shall be paid by the Government to PENALTIES FOR ITS VIOLATION, AND FOR OTHER
the educational institution concerned within 30 days PURPOSES
from its presentation.
LABOR LAW REVIEWER
PROTECTION AGAINST CHILD ABUSE

ATTEMPT TO COMMIT CHILD
The law provides that the State shall provide PROSTITUTION IS PUNISHABLE
special protection to children from all forms of abuse,
neglect, cruelty, exploitation and discrimination, other There is an attempt to commit child
conditions prejudicial to their development, provide prostitution when any person who, not being a relative
sanctions for their commission and carry out a of a child, is found alone with the said child inside the
program for prevention and deterrence of and crises room or cubicle of a house, an inn, hotel, motel,
intervention in situations of child abuse, exploitation pension house, apartelle or other similar
and discrimination. The State shall intervene in behalf establishments, vessel, vehicle or any other hidden or
of the child when the parent, guardian, teacher or secluded area under circumstances which would lead
person having care or custody of the child fails or is a reasonable person to believe that the child is about
unable to protect the child against abuse, exploitation to be exploited in prostitution and other sexual abuse.
and discrimination or when such acts against the child
are committed by the said parent, guardian, teacher or There is also an attempt to commit child
person having care and custody of the same. prostitution when any person is receiving services
from a child in a sauna parlor or bath, massage clinic,
Definition of Terms health club and other similar establishments. A penalty
lower by two degrees than that prescribed for the
CHILDREN refers to persons below 18 consummated felony shall be imposed upon the
years of age or those over but are unable to fully principals of the attempt to commit the crime of child
take care of themselves or protect themselves from prostitution under the Act, or, in the proper case, under
abuse, neglect, cruelty, exploitation or discrimination the Revised Penal Code.
because of a physical or mental disability or condition;
CHILD TRAFFICKING
CHILD ABUSE refers to the maltreatment,
whether habitual or not, of the child. Any person who shall engage in trading and
dealing with children including, but not limited to the
CHILD PROSTITUTION AND OTHER act of buying and selling a child for money, or for any
SEXUAL ABUSE Children whether male or female, other consideration, or barter; shall suffer the penalty
who for money, profit, or any other consideration or of reclusion temporal to reclusion perpetua. The
due to the coercion or influence of any adult, penalty shall be imposed in its maximum period when
syndicate or group, indulge in sexual intercourse or the victim is under 12 years of age.
lascivious conduct, are deemed to be children
exploited in prostitution and sexual abuse. There is an attempt to commit child
trafficking:
PENALTY FOR CHILD PROSTITUTION AND
OTHER SEXUAL ABUSE When a child travels in a foreign country without
valid reason therefore and without clearance
The penalty of reclusion temporal in its issued by the DSWD or written permit or
medium period to reclusion perpetua shall be imposed justification from the childs parents or legal
upon the following: guardian;
Those who engage in or promote, facilitate or When a pregnant mother executes an affidavit of
induce child prostitution. consent for adoption for a consideration.
Those who commit the act of sexual intercourse When a person, agency, establishment or child-
or lascivious conduct with a child exploited in caring institution recruits women or couples to
prostitution or subjected to other sexual abuse; bear children for the purpose of child trafficking;
Provided, that when the victim is under 12 years
of age, the perpetrators shall be prosecuted When a doctor, hospital or clinic official or
under Article 335, paragraph 3 for rape and employee, nurse, midwife, local civil registrar or
Article 336 of Act No. 3815, as amended, the any other person simulates the birth for the
Revised Penal Code, for rape or lascivious purpose of child trafficking; or
conduct, as the case may be: Provided, that the
penalty for lascivious conduct when the victim is When a person engages in the act of finding
under 12 years of age shall be reclusion temporal children among low-income families, hospitals,
in its medium period; and clinics, nurseries, day care enters, or other child-
caring institutions who can be offered for the
Those who derive profit or advantage therefrom, purpose of child trafficking.
whether as manager or owner of the
establishment where the prostitution takes place, PENALTY FOR AN ATTEMPT TO COMMIT
or of the sauna, disco, bar, resort, place of CHILD TRAFFICKING
entertainment or establishment serving as a
cover or which engages in prostitution in addition A penalty lower by two degrees than that
to the activity for which the license has been prescribed for the consummated felony shall be
issued to said establishment.
LABOR LAW REVIEWER
imposed upon the principals of the attempt to commit its maximum period and a fine of not less than P5, 000
child trafficking. nor more than P10, 000.
PENALTY IMPOSED UPON ANY PERSON WHO CHILDREN IN SITUATIONS OF

SHALL HIRE, EMPLOY, USE, PERSUADE, ARMED CONFLICT
INDUCE OR COERCE A CHILD TO PERFORM
IN OBSCENE EXHIBITIONS AND INDECENT Children as zones of peace
SHOWS?
Children are hereby declared as Zones of
Prision mayor in its medium period. Peace. It shall be the duty of the State and all other
concerned sectors to resolve armed conflicts in order
If the child is below 12 years of age, the penalty to promote the goal of children as zones of peace.
shall be imposed in its maximum period.
Evacuation of children during
Any ascendant, guardian, or person entrusted in armed conflict
any capacity with the care of a child who shall
cause and/or allow such child to be employed or Children shall be given priority during
to participate in an obscene play, scene, act, evacuation as a result of armed conflict. Existing
movie or show shall suffer the penalty of prision community organizations shall be tapped to look after
mayor in its medium period. their safety during evacuation periods.
Other Acts of Neglect, Abuse, Cruelty or Families shall be provided with facilities to
Exploitation and Other Conditions Prejudicial to lead a normal family life and in places of temporary
the Childs Development shelter, expectant and nursing mothers and children
shall be given additional food in proportion to their
Any person who shall commit any other acts of physiological needs.
child abuse or be responsible for other conditions
prejudicial to the childs development including Children arrested for reasons related to
those covered by Article 59 of PD 603 but not armed conflicts shall also be entitled to special rights.
covered by the Revised Penal Code prision
mayor in its minimum period The chairman of the barangay affected by
the armed conflict shall also monitor and report
children in situations of armed conflict.
Any person who shall keep or have in his
company a minor 12 years or under or who is 10 Remedial Procedures
years or more his junior in any public place, hotel,
motel, beer joint, discoteque, cabaret, pension Who may file a complaint?
house, sauna, beach and/or other tourist resort or
similar places prision mayor in its maximum Complaints in cases of unlawful acts
period and a fine not less than P50, 000: committed against children as enumerated herein may
Provided that this will not apply to any person be filed by the following:
who is related within the fourth degree of
consanguinity or affinity or any bond recognized Offended party;
by law, local custom, and tradition, or acts in
performance of a social, moral or legal duty. Parents or guardians;
Any person who shall induce, deliver or offer a Ascendant or collateral relative within the third
minor to any one as prohibited by this act shall degree of consanguinity;
also be liable.
Officer, social worker or representative of a
Any person, owner, manager or one entrusted licensed child-caring institution;
with the operation of any public or private place
of accommodation who allows any person to take Officer or social worker of the DSWD;
along with him to such place or places any minor
described shall be imposed a penalty of prision Barangay chairman; or
mayor in its medium period and a fine of not less
thanP50, 000, and the loss of the license to At least three concerned, responsible citizens
operate such a place or establishment. where the violation occurred.
Children of indigenous cultural communities shall The offended party shall be immediately
not be subject to any and all forms of placed under the protective custody of the DSWD
discrimination. pursuant to EO 56, series of 1986.
Any person who will discriminate against Confidentiality

such children shall suffer a penalty of arresto mayor in
LABOR LAW REVIEWER
At the instance of the offended party, his

name may be withheld from the public until the court The demand, request or requirement for sexual
acquires jurisdiction over the case. favor results in an intimidating, hostile, or
offensive environment for the offended party.
Special Court Proceedings
SEXUAL HARASSMENT COMMITTED IN AN
Cases involving violations of this act shall be EDUCATION OR TRAINING
heard in the chambers of the judge of the RTC duly ENVIRONMENT
designated as Juvenile and Domestic Relations Court.
With the exception of habeas corpus, election cases, It is committed when:
and cases involving detention prisoners and persons
covered by RA 4908, all courts shall give preference The offender demands, requests, or otherwise
to the hearing or disposition of cases involving requires sexual favors from the offended party;
violations of this Act.
The sexual favor is made a condition to the giving
of a passing grade, or the granting of honors and
scholarships, or the payment of stipend,
REPUBLIC ACT NO. 7877 allowance or other benefits, privileges, or
THE ANTI-SEXUAL HARASSMENT ACT OF 1995 considerations;
REPUBLIC ACT NO. 7877 is An Act

Declaring Sexual Harassment Unlawful in the When the sexual advances result in an
Employment, Education or Training Environment, and intimidating, hostile or offensive environment for
for other Purposes. the student, trainee or apprentice; or
The law took effect on March 5, 1995 or The offended party is one who is under the care,
fifteen days after its complete publication on February custody or supervision of the offender, or one
8,1995 in two (2) national newspapers of general whose education, training, apprenticeship or
circulation. tutorship is entrusted to the offender.
The law provides that the State shall value PERSONS LIABLE FOR
the dignity of every individual, enhance the SEXUAL HARASSMENT
development of its human resources, guarantee full
respect for human rights, and uphold the dignity of The persons liable for sexual harassment
workers, employees, applicants for employment, are:
students of those undergoing training, instruction or
education. Towards this end, all forms of sexual
harassment in the employment, education or training Employer;
environment are hereby declared unlawful.
Employee;
SEXUAL HARASSMENT COMMITTED IN A
Manager;
WORK-RELATED OR EMPLOYMENT
ENVIRONMENT
Supervisor;
Any person who, having authority, influence or Agent of the employer;

moral ascendancy over another demands,
requests, or otherwise requires sexual favor from Teacher
the other;
Instructor;
The sexual favor is made as a condition in the
following instances: a) in the hiring or in the Professor;
employment, re-employment or continued
employment of said individual; and b) or in Coach;
granting said individual favorable compensation,
terms, conditions, promotions, or privileges; Trainor; and
The refusal to grant the sexual favor results in Any other person who has authority, influence or
limiting, segregating or classifying the employee moral ascendancy over another.
which in any way would discriminate, deprive or
diminish employment opportunities or otherwise Any person who directs or induces another to
adversely affect said offended party; commit any act of sexual harassment or who
cooperates in the commission thereof by another
The demand, request or requirement for sexual without which it would not have been committed.
favor would impair the offended partys rights or
privileges under existing labor laws.
LABOR LAW REVIEWER
SEXUAL HARASSMENT EXISTS WHETHER OR Said rules and regulations shall include
NOT THE OBJECT OF SAID ACT ACCEPTS THE guidelines on proper decorum in the workplace
SEXUAL DEMAND, REQUEST OR and educational or training institutions.
REQUIREMENT FOR SUBMISSION
Create a committee on decorum and
Sexual harassment exists whether or not the investigation of cases of sexual harassment. The
sexual demand, request or requirement for submission committee shall conduct meetings, as the case
is accepted. may be, with officers and employees, teachers,
instructors, professors, coaches, trainors and
OFFENDED PARTIES BEING UNDER THE students or trainees to increase understanding
CARE, CUSTODY OR SUPERVISION OF THE and prevent incidents of sexual harassment. It
OFFENDER shall also conduct the investigation of alleged
cases constituting sexual harassment.
ward with respect to his guardian
Disseminate or post a copy of the Anti-Sexual
a person under custodial investigation with Harassment Act or Republic Act No. 7877 for the
respect to the police/investigating officers; information of all concerned.
a retardate in a mental institution with respect to

the people charged with his/her care; MEMBERS OF THE COMMITTEE ON
DECORUM AND INVESTIGATION
children in a day care center with respect to the
social workers. In the case of work-related environment, the
committee shall be composed of at least one (1)
representative each from the management, the union,
OFFENDED PARTIES WHOSE EDUCATION, if any, the employees from the supervisory rank, and
TRAINING, APPRENTICESHIP OR TUTORSHIP from the rank and file employees.
IS ENTRUSTED TO THE OFFENDER
In the case of educational or training
institution, the committee shall be composed of at
a student with respect to his teacher or least one (1) representative each from the
professor; administration, the trainors, teachers, instructors,
professors or coaches and students or trainees, as the
a seminarian/novice with respect to the case may be.
supervisors and head of the institution;
REMEDIES
an athlete with respect to his/her coach;
The victim of sexual harassment may file a
an apprentice in the office with respect to his/her complaint:
immediate supervisor.
Before the Committee on Decorum and
DUTIES OF THE EMPLOYER OR HEAD OF Investigation in the office or educational or
OFFICE IN A WORK-RELATED, EDUCATION OR training institution, as the case may be; or
TRAINING ENVIRONMENT
Before the court having jurisdiction thereof: or
It shall be the duties of the employer or head
of office to: Before the appropriate court in an independent
civil action for damages.
Prevent or deter the commission of acts of sexual
harassment in their respective areas of A victim of sexual harassment CAN file
responsibility. an action in the court despite the imposition of
administrative sanction against the offender
Provide the procedures for the resolution, because administrative sanctions shall not be a bar for
settlement or prosecution of sexual harassment. prosecution in the proper courts for unlawful acts of
sexual harassment.
Towards this end, the employer or head of
office shall: Neither shall the victim of work, education or
training-related sexual harassment be precluded from
Promulgate appropriate rules and regulations in instituting a separate and independent action for
consultation with and jointly approved by the damages and other affirmative relief.
employees or students or trainees, through their
duly designated representatives, prescribing the The employer or head of office, educational
procedure for the investigation of sexual or training institution shall be solidarily liable for
harassment cases and the administrative damages arising from the acts of sexual harassment
sanctions therefore. committed in the employment, education or training
environment, if the employer or head of office,
educational or training institution is informed of such
LABOR LAW REVIEWER
acts by the offended party and no immediate action is provides that a child under this bracket may be
taken thereon. employed when he works directly under the sole
responsibility of his parents or legal guardian and
Solidary liability means joint and several where only members of the employers family are
liability. With joint and several liability, the liability of employed. Provided, however, that his
two or more obligors may be enforced against them all employment neither endangers his life, safety,
by a joint action or against any of them by an health and morals, or impairs his normal
individual action. development. Provided, further that the parent or
legal guardian shall provide the minor child with
PENALTIES the prescribed primary and/or secondary
education.
Any person who commits sexual
harassment shall upon conviction, be penalized by All of the above, that is below 18 years, are
imprisonment of not less than one (1) month nor more subject to Art. 139 (c) of the LC, hence, all of them
than six (6) months, or a fine of not less than Ten may not be employed in an undertaking which is
Thousand Pesos (10,000.00) nor more than Twenty hazardous or deleterious in nature as determined by
Thousand Pesos (20,000.00), or both such fine and the Secretary of Labor and Employment.
imprisonment at the discretion of the court.
PERIOD TO FILE A COMPLAINT FOR SEXUAL

HARASSMENT BE FILED
PERTINENT PROVISIONS OF THE CHILD AND YOUTH
Any complaint for sexual harassment shall WELFARE CODE
be filed within three (3) years from the time it is (P.D. NO. 603 AS AMENDED)
committed. Beyond this period, the complaint shall be
barred. WORKING CHILDREN
Art. 107. Employment of Children Below Sixteen Years

Children below 16 years of age may be
OPINION OF THE SECRETARY OF LABOR DATED employed to perform light work which is not
SEPTEMBER 3, 1991 ON THE harmful to their safety, health or normal
EMPLOYMENT OF PERSONS BELOW AGE 18 development and which is not prejudicial to their
studies.
Children below 18 years of age may be
allowed to work subject to the following conditions: The provisions of the Labor Code relating to
employable age and conditions of employment of
Those from 16 to below 18 are subject to Art. 139 children are hereby adopted as part of this Code
(b), Labor Code (LC) as amended and Art. 107 of insofar as it is not inconsistent herewith.
the Child and Youth Welfare Code (CYWC), that
is, they may be employed for such number of Art. 108 Duty of Employer to Submit Report The
hours and such periods of the day as determined employer shall submit to the DOLE a report of all
by the Secretary of Labor in appropriate children employed by him. A separate report
regulations. shall be made of all such children who are found
to be handicapped after medical examination.
Those from 15 to below 16 are subject to Art. 107 The Secretary of Labor shall refer such
of the CYWC and Art. 139 (b) of the LC, hence handicapped children to the proper government
they may be employed to perform light work or private agencies for vocational guidance,
which is not harmful to their safety, health, or physical and vocational rehabilitation, and
normal development and which is not prejudicial placement in employment.
to their studies (Art.107, CYWC), for such
number of hours and such periods of the day as Art.109 Register of Children
determined by the Secretary of Labor (Art. 139 b,
LC). Every employer in any commercial,
industrial or agricultural establishment or enterprise
Those who are below 15 are subject to Art. 139 shall keep:
(a) of the LC and Art. 107 of the CYWC, that is
they may be employed when they work directly A register of all children employed by him,
under the sole responsibility of their parents or indicating the dates of their birth;
guardian and their employment does not in any
way interfere with their schooling (Art.139 a, LC) A separate file for the written consent to their
and to perform light work which is not harmful to employment given by their parents or guardians;
their safety, health or normal development and
which is not prejudicial to their studies (Art. 107, A separate file for their educational and medical
CYWC). certificates; and
Art. 139 (a) was amended by RA 7610 and which

was later amended by RA 7658 which now
LABOR LAW REVIEWER
A separate file for special work permits issued by house helpers lodging, food, and medical
the Secretary of Labor in accordance with attendance.
existing laws.
Art. 1690. The head of the family shall furnish, free of
Art. 110 Education of Children employed as Domestics charge, to the house helper, suitable and
If a domestic is under sixteen years of age, the sanitary quarters as well as adequate food and
head of the family shall give him an opportunity medical attendance.
to complete at least elementary education as
required under Article 71. The cost of such Art. 1691. If the house helper is under the age of
education shall be a part of the domestics eighteen years, the head of the family shall give
compensation unless there is a stipulation to the an opportunity to the household helper for at
contrary. least elementary education. The cost of such
education shall be a part of the house helpers
Art. 111 Right to Self-Organization Working children compensation, unless there is a stipulation to the
shall have the same freedom as adults to join contrary.
the collective bargaining union of their own
choosing in accordance with existing laws. Art. 1692. No contract for household service shall last for
more than two years. However, such contract
Neither management nor any collective may be renewed from year to year.
bargaining union shall threaten or coerce
working children to join, continue or withdraw as Art. 1693. The house helpers clothes shall be subject to
members of such union. stipulation. However, any contract for household
service shall be void if thereby the house helper
Art. 112 Conditions of Employment There shall be close cannot afford to acquire suitable clothing.
collaboration between labor and management in
the observance of the conditions of employment Art.1694. The head of the family shall treat the house
required by law for working children. helper in a just and humane manner. In no case
shall physical violence be used upon the house
Art. 113 Educational Assistance Programs The helper.
management may allow time off without loss or
reduction of wages for working children with Art. 1695. House helpers shall not be required to work
special talents to enable them to pursue formal more than ten hours a day. Every house helper
studies in technical schools on scholarships shall be allowed four days vacation each month,
financed by management or by the collective with pay.
bargaining union or unions.
Art. 1696. In case of death of the house helper, the head
Art. 114 Welfare Programs Labor and management of the family shall bear the funeral expenses if
shall, in cooperation with the Women and Minors the house helper has no relatives in the place
Bureau of the DOLE, undertake projects and in- where the head of the family lives, with sufficient
service training programs for working children means therefore.
which shall improve their conditions for
employment, improve their capabilities and Art. 1697. If the period for household service is fixed
physical fitness, increase their efficiency, secure neither the head of the family nor the house
opportunities for their promotion, prepare them helper may terminate the contract before the
for more responsible positions, and provide for expiration of the term, except for a just cause. If
their social, educational and cultural the house helper is unjustly dismissed, he shall
advancement. be paid the compensation already earned plus
that for fifteen days by way of indemnity. If the
Art. 115 Research Projects Labor and management house helper leaves without justifiable reason,
shall cooperate with any government or private he shall forfeit any salary due him and unpaid,
research project on matters affecting the welfare for not exceeding 15 days.
of working children.
Art. 1698. If the duration of the household service is not
determined either by stipulation or by the nature
of the service, the head of the family or the
CIVIL CODE PROVISIONS house helper may give notice to put an end to
ON HOUSEHOLD SERVICE the service relation, according to the following
rules:
WORK AND LABOR
If the compensation is paid by the day, notice
Section 1 Household Service may be given on any day that the service shall
end at the close of the following day;
Art. 1689. Household service shall always be reasonably
compensated. Any stipulation that household If the compensation is paid by the week, notice
service is without compensation shall be void. may be given, at the latest, on the first business
Such compensation shall be in addition to the day of the week, that the service shall be
LABOR LAW REVIEWER
terminated at the end of the seventh day from Work with dangerous machinery, equipment and
the beginning of the week; tools, or which involves manual handling or
transport of heavy loads, such as in but not
If the compensation is paid by the month, notice limited to: logging, construction, quarrying, metal
may be given, at the latest, on the fifth day of work and welding, driving or operating heavy
the month, that the service shall cease at the equipment, operating motor-driven machines
end of the month. such as saws, operating power-driven tools such
as drills and jack hammers, stevedoring, working
Art. 1699. Upon the extinguishment of the service in airport hangars, working in warehouses,
relation, the house helper may demand from the working in docks, etc.
head of the family a written statement on the
nature and duration of the service and the Work in an unhealthy environment which may
efficiency and conduct of the house helper. expose children to hazardous processes, to
temperatures, noise levels or vibrations
DEPARTMENT ORDER NO. 4 damaging to their health, to toxic, corrosive,
Series of 1999 Superseding D.O. No. 4, poisonous, noxious, explosive, flammable and
Approved on 8 June 1973 combustible substances or composites, to
harmful biological agents, or to other dangerous
chemicals including pharmaceuticals, such as in
HAZARDOUS WORK AND ACTIVITIES TO but not limited to: manufacture or handling of
PERSONS BELOW 18 YEARS OF AGE pyrotechnics, tanning, pesticide spraying,
blacksmithing, hammer smiths, forging, extracting
Basis of the Issuance of the Guidelines lard and oil, filing and greasing of heavy
machinery, fiber and plastic preparing, bleaching,
The guidelines were issued pursuant to dyeing, and finishing of textiles using chemicals,
Article 139 (c), Book III of the Labor Code of the embalming and as undertakers, painting or as
Philippines, and Republic Act 7658, An Act Prohibiting finishers in metal craft industries, applying of
the Employment of Children Below 15 Years of Age in adhesive/solvent in footwear handcraft and
Public and Private Undertakings. woodwork industries, brewing and distilling of
alcoholic beverages, recycling of batteries or
Policy materials contaminated with chemicals, working
in abattoirs or slaughterhouses, garbage
The employment of a person below 18 in an collecting, handling of animal manure in poultry
undertaking, which is hazardous or deleterious in houses or as fertilizer in farming, working in
nature, as identified herein shall be prohibited. hospitals or other health care facilities, assisting
in laboratories and x-ray work, welding, working
The employment of a person below 15 in in furnaces or kilns, working in discotheques,
any undertaking is likewise prohibited, except only in working in video arcades.
employment that would not endanger their life, safety,
health and morals, or impair their normal Work under particularly difficult conditions such
development, and in any event subject to the as work for long hours or during the night, or
requirements of RA 7658. work where the child is unreasonably confined to
the premises of the employer.
Coverage
Applicability of the Guidelines to
The following work and activities are hereby Domestic or Household Service
declared hazardous to persons below 18 without
prejudice to Section 14, Article VIII of RA 7610, to Persons between 15 and 18 years of age
DOLE Memorandum Circular No. 2, Series of 1998 may be allowed to engage in domestic or ho usehold
and to other work and activities that may be service, subject in all cases to the limitations
subsequently declared as such: prescribed above.
Work which exposes children to physical,

psychological or sexual abuse, such as in but not
limited to: lewd shows, cabarets, bars (KTV,
karaoke bars), dance halls, massage clinics, REPUBLIC ACT NO. 6657
escort service, gambling halls, etc. June 10, 1988
COMPREHENSIVE AGRARIAN REFORM
Work underground, under water, at dangerous PROGRAM
heights or at unguarded heights of two meters
and above, or in confined places, such as in: Declaration of Principles and Policies
mining, deep sea fishing/diving, installing and
repairing of telephone, telegraph and electrical It is the policy of the State to pursue a
lines, cable fitters, painting buildings, window comprehensive Agrarian Reform (CARP). The welfare
cleaning, fruit picking involving climbing. of the landless farmers and farmworkers will receive
the highest consideration to promote social justice and
to move the nation toward sound rural development
LABOR LAW REVIEWER
and industrialization, and the establishment of owner develop and conserve such resources. The
cultivatorship of economic-size farms as the basis of protection shall extend to offshore fishing
Philippine agriculture. grounds of subsistence fishermen against foreign
intrusion. Fishworkers shall receive a just share
Ultimate Goal from their labor in the utilization of marine and
fishing resources.
To this end, a more equitable distribution
and ownership of land, with due regard to the rights of Be guided by the principles that land has a social
landowners to just compensation and to the ecological function and land ownership has a social
needs of the nation, shall be undertaken to provide responsibility. Owners of agricultural land have
farmers and farmworkers with the opportunity to the obligation to cultivate directly or through labor
enhance their dignity and improve the quality of their administration the lands they own and thereby
lives through greater productivity of agricultural lands. make the land productive.
Basis Provide incentives to landowners to invest the

proceeds of the agrarian reform program to
The agrarian reform program is founded on promote industrialization, employment and
the right of farmers and regular farmworkers, who are privatization of public sector enterprises.
landless, to own directly or collectively the lands they Financial instruments used as payment for lands
till or, in the case of other farmworkers, to receive a shall contain features that shall enhance
just share of the fruits thereof. To this end, the State negotiability and acceptability in the marketplace.
shall encourage and undertake the just distribution of
all agricultural lands, subject to the priorities and Lease undeveloped lands of the public domain to
retention limits set forth in this Act, taking into account qualified entities for the development of capital
ecological, developmental, and equity considerations, intensive farms, and traditional and pioneering
and subject to the payment of just compensation. The crops especially those for exports subject to the
State shall respect the right of small landowners, and prior rights of the beneficiaries under this Act.
shall provide incentives for voluntary land-sharing.
Definitions
The State shall
AGRARIAN REFORM means redistribution of
Recognize the right of farmers, farmworkers and lands, regardless of crops or fruits produced, to
landowners, as well as cooperatives and other farmers and regular farmworkers who are
independent farmers' organizations, to participate landless, irrespective of tenurial arrangement, to
in the planning, organization, and management of include the totality of factors and support services
the program, and shall provide support to designed to lift the economic status of the
agriculture through appropriate technology and beneficiaries and all other arrangements
research, and adequate financial production, alternative to the physical redistribution of lands,
marketing and other support services. such as production or profit-sharing, labor
administration, and the distribution of shares of
Apply the principles of agrarian reform, or stock, which will allow beneficiaries to receive a
stewardship, whenever applicable, in accordance just share of the fruits of the lands they work.
with law, in the disposition or utilization of other
natural resources, including lands of the public AGRICULTURE, AGRICULTURAL
domain, under lease or concession, suitable to ENTERPRISE or AGRICULTURAL ACTIVITY
agriculture, subject to prior rights, homestead means the cultivation of the soil, planting of
rights of small settlers and the rights of crops, growing of fruit trees, raising of livestock,
indigenous communities to their ancestral lands. poultry or fish, including the harvesting of such
farm products, and other farm activities and
Resettle landless farmers and farmworkers in its practices performed by a farmer in conjunction
own agricultural estates, which shall be with such farming operations done by person
distributed to them in the manner provided by whether natural or juridical.
law.
By means of appropriate incentives, encourage AGRICULTURAL LAND refers to land devoted

the formation and maintenance of economic size to agricultural activity as defined in this Act and
family to be constituted by individual beneficiaries not classified as mineral, forest, residential,
and small landowners. commercial or industrial land.
Protect the rights of subsistence fishermen, AGRARIAN DISPUTE refers to any controversy
especially of local communities, to the relating to tenurial arrangements, whether
preferential use of communal marine and fishing leasehold, tenancy, stewardship or otherwise,
resources, both inland and offshore. It shall over lands devoted to agriculture, including
provide support to such fishermen through disputes concerning farmworkers' associations or
appropriate technology and research, adequate representation of persons in negotiating, fixing,
financial, production and marketing assistance maintaining, changing, or seeking to arrange
and other services. The State shall also protect,
LABOR LAW REVIEWER
terms or conditions of such tenurial economic resources, and operated on the

arrangements. principle of one member, one vote. A juridical
It includes any controversy relating to person may be a member of a cooperative, with
compensation of lands acquired under this Act the same rights and duties as a natural person.
and other terms and conditions of transfer of
ownership from landowners to farmworkers,
tenants and other agrarian reform beneficiaries, COVERAGE
whether the disputants stand in the proximate
relation of farm operator and beneficiary, Scope
landowner and tenant, or lessor and lessee.
The comprehensive Agrarian Reform Law of
IDLE OR ABANDONED LAND refers to any 1988 shall cover, regardless of tenurial arrangement
agricultural land not cultivated, tilled or developed and commodity produced, all public and private
to produce any crop nor devoted to any specific agricultural lands, including other lands of the public
economic purpose continuously for a period of domain suitable for agriculture. More specifically the
three (3) years immediately prior to the receipt of following lands are covered by the Comprehensive
notice of acquisition by the government as Agrarian Reform Program:
provided under the Act, but does not include land
that has become permanently or regularly All alienable and disposable lands of the public
devoted to non-agricultural purposes. It does not domain devoted to or suitable for agriculture. No
include land which has become unproductive by reclassification of forest or mineral lands to
reason of force majeure or any other fortuitous agricultural lands shall be undertaken after the
event, provided that prior to such event, such approval of this Act until Congress, taking into
land was previously used for agricultural or other account ecological, developmental and equity
economic purpose. considerations, shall have determined by law, the
specific limits of the public domain.
FARMER refers to a natural person whose
primary livelihood is cultivation of land or the All lands of the public domain in excess of the
production of agricultural crops, either by himself, specific limits as determined by Congress in the
or primarily with the assistance of his immediate preceding paragraph;
farm household, whether the land is owned by
him, or by another person under a leasehold or All other lands owned by the Government
share tenancy agreement or arrangement with devoted to or suitable for agriculture; and
the owner thereof.
All private lands devoted to or suitable for
FARMWORKER is a natural person who agriculture regardless of the agricultural products
renders service for value as an employee or raised or that can be raised thereon.
laborer in an agricultural enterprise or farm
regardless of whether his compensation is paid
on a daily, weekly, monthly or "pakyaw" basis. RETENTION LIMITS
The term includes an individual whose work has
ceased consequence of, or in connection with, a Except as otherwise provided in this Act, no
pending agrarian dispute and who has not person may own or retain, directly or indirectly, any
obtained a substantially equivalent and regular public or private agricultural land, the size of which
farm employment. shall vary according to factors governing a viable
family-size farm, such as commodity produced,
REGULAR FARMWORKER is a natural person terrain, infrastructure, and soil fertility as determined
who is employed on a permanent basis by an by the Presidential Agrarian Reform Council (PARC)
agricultural enterprise or farm. created hereunder, but in no case shall retention by
the landowner exceed five (5) hectares. Three (3)
SEASONAL FARMWORKER is a natural hectares may be awarded to each child of the
person who is employed on a recurrent, periodic landowner, subject to the following qualifications: (1)
or intermittent basis by an agricultural enterprise that he is at least fifteen (15) years of age; and (2) that
or farm, whether as a permanent or a non- he is actually tilling the land or directly managing the
permanent laborer, such as "dumaan", "sacada", farm: Provided, That landowners whose lands have
and the like. been covered by Presidential Decree No. 27 shall be
allowed to keep the area originally retained by them
OTHER FARMWORKER is a farmworker who thereunder: Provided, further, That original homestead
does not fall under abovementioned definitions. grantees or their direct compulsory heirs who still own
the original homestead at the time of the approval of
COOPERATIVES shall refer to organizations this Act shall retain the same areas as long as they
composed primarily of small agricultural continue to cultivate said homestead.
producers, farmers, farmworkers, or other
agrarian reform beneficiaries who voluntarily The right to choose the area to be retained,
organize themselves for the purpose of pooling which shall be compact or contiguous, shall pertain to
land, human, technological, financial or other the landowner: Provided, however, That in case the
area selected for retention by the landowner is
LABOR LAW REVIEWER
tenanted, the tenant shall have the option to choose grower or service contract in effect as of August 29,
whether to remain therein or be a beneficiary in the 1987, or otherwise, upon its valid termination,
same or another agricultural land with similar or whichever comes sooner, but not later than after ten
comparable features. In case the tenant chooses to (10) years following the effectivity of this act.
remain in the retained area, he shall be considered a
leaseholder and shall lose his right to be a beneficiary During the period of effectivity, the
under this Act. In case the tenant chooses to be a government shall take steps to acquire these lands for
beneficiary in another agricultural land, he loses his immediate distribution thereafter.
right as a leaseholder to the land retained by the
landowner. The tenant must exercise this option with a Ancestral Lands
period of one (1) year from the time the landowner
manifests his choice of the area for retention. For purposes of this Act, ancestral lands of
each indigenous cultural community shall include, but
In all cases, the security of tenure of the not be limited to, lands in the actual, continuous and
farmers or farmworkers on the land prior to the open possession and occupation of the community
approval of this Act shall be respected. and its members: Provided, That the Torrens Systems
shall be respected.
Upon the effectivity of this Act, any sale,
disposition, lease, management contract or transfer of Exemptions and Exclusions
possession of private lands executed by the original
landowner in violation of the Act shall be null and void: Lands actually, directly and exclusively used
Provided, however, That those executed prior to this and found to be necessary for parks, wildlife, forest
Act shall be valid only when registered prior to this Act reserves, reforestation, fish sanctuaries and breeding
shall be valid only when registered with the Register of grounds, watersheds, and mangroves, national
Deeds within a period of three (3) months after the defense, school sites and campuses including
effectivity of this Act. Thereafter, all Registers Reform experimental farm stations operated by public or
(DAR) within thirty (30) days of any transaction private schools for educational purposes, seeds and
involving agricultural lands in excess of five (5) seedlings research and pilot production centers,
hectares. church sites and convents appurtenant thereto,
communal burial grounds and cemeteries, penal
Priorities colonies and penal farms actually worked by the
inmates, government and private research and
The schedule of acquisition and quarantine centers and all lands with eighteen percent
redistribution of all agricultural lands covered by this (18%) slope and over, except those already developed
program shall be made in accordance with the shall be exempt from the coverage of the Act.
implementing rules to be prepared by the Presidential
Agrarian Reform Council (PARC), taking into Commercial Farming
consideration the following; the need to distribute land
to the tillers at the earliest practicable time; the need Commercial farms, which are private
to enhance agricultural productivity; and the agricultural lands devoted to commercial livestock,
availability of funds and resources to implement and poultry and swine raising, and aquaculture including
support the program. salt beds, fishponds and prawn ponds, fruit farms,
orchards, vegetable and cut-flower farms, and cacao,
In any case, the PARC, upon coffee and rubber plantations, shall be subject to
recommendation by the Provincial Agrarian Reform immediate compulsory acquisition and distribution
coordinating Committee (PARCCOM), may declare after (10) years from the effectivity of this Act. In the
certain provinces or region as priority land reform case of new farms, the ten-year period shall begin
areas, in which the acquisition and distribution of from the first year of commercial production and
private agricultural lands therein may be implemented operation, as determined by the DAR.
ahead of the above schedules.
In effecting the transfer within these REGISTRATION

guidelines, priority must be given to lands that are
tenanted. Registration of Landowners
Multinational Corporations Within one hundred eighty (180) days from

the effectivity of this Act, all person, natural or juridical,
All lands of the public domain leased, held including government entities, that own or claim to
or possessed by multinational corporations or own agricultural lands, whether in their names or in
associations, and other lands owned by the the name of others, except those who have already
government or by government-owned or controlled registered pursuant to Executive Order No. 229, who
corporation, associations, institutions, or entities, shall be entitled to such incentives as may be
devoted to existing and operation agri-business or provided for the PARC, shall file a sworn statement in
agro-industrial enterprises, operated by multinational the proper assessor's office in the form to be
corporations and associations, shall be programmed prescribed by the DAR, stating the following
for acquisition and distribution immediately upon the information:
expiration of the applicable lease, management,
LABOR LAW REVIEWER
the description and area of the property; Sections 17, and 18, and other pertinent
provisions hereof.
the average gross income from the property for at
least three (3) years; Within thirty (30) days from the date of receipt of
written notice by personal delivery or registered
the names of all tenants and farmworkers therein; mail, the landowner, his administrator or
representative shall inform the DAR of his
the crops planted in the property and the area acceptance or rejection of the offer.
covered by each crop as of June 1, 1987;
the terms of mortgages, leases, and If the landowner accepts the offer of the DAR, the
management contracts subsisting as of June 1, Land Bank of the Philippines (LBP) shall pay the
1987, and landowner the purchase price of the land within
thirty (30) days after he executes and delivers a
the latest declared market value of the land as deed of transfer in favor of the government and
determined by the city or provincial assessor. surrenders the Certificate of Title and other
muniments of title.
Registration of Beneficiaries
In case of rejection or failure to reply, the DAR
The DAR in coordination with the Barangay shall conduct summary administrative
Agrarian Reform Committee (BARC) as organized in proceedings to determine the compensation for
this Act, shall register all agricultural lessees, tenants the land by requiring the landowner, the LBP and
and farmworkers who are qualified to be beneficiaries other interested parties to submit evidence as to
of the CARP. These potential beneficiaries with the the just compensation for the land, within fifteen
assistance of the BARC and the DAR shall provide the (15) days from the receipt of the notice. After the
following data: expiration of the above period, the matter is
deemed submitted for decision. The DAR shall
names and members of their immediate farm decide the case within thirty (30) days after it is
household; submitted for decision.
owners or administrators of the lands they work Upon receipt by the landowner of the
on and the length of tenurial relationship; corresponding payment or, in case of rejection or
no response from the landowner, upon the
location and area of the land they work; deposit with an accessible bank designated by
the DAR of the compensation in cash or in LBP
crops planted; and bonds in accordance with this Act, the DAR shall
take immediate possession of the land and shall
request the proper Register of Deeds to issue a
their share in the harvest or amount of rental paid
Transfer Certificate of Title (TCT) in the name of
or wages received.
the Republic of the Philippines. The DAR shall
thereafter proceed with the redistribution of the
A copy of the registry or list of all potential
land to the qualified beneficiaries.
CARP beneficiaries in the barangay shall be posted in
the barangay hall, school or other public buildings in
the barangay where it shall be open to inspection by Any party who disagrees with the decision may
the public at all reasonable hours. bring the matter to the court of proper jurisdiction
for final determination of just compensation.
COMPENSATION
LAND ACQUISITION Determination of Just Compensation
Procedure for Acquisition In determining just compensation, the cost

of Private Lands of acquisition of the land, the current value of the like
properties, its nature, actual use and income, the
For purposes of acquisition of private lands, sworn valuation by the owner, the tax declarations,
the following procedures shall be followed: and the assessment made by government assessors
shall be considered. The social and economic benefits
contributed by the farmers and the farmworkers and
After having identified the land, the landowners
by the Government to the property as well as the non-
and the beneficiaries, the DAR shall send its
payment of taxes or loans secured from any
notice to acquire the land to the owners thereof,
government financing institution on the said land shall
by personal delivery or registered mail, and post
be considered as additional factors to determine its
the same in a conspicuous place in the municipal
valuation.
building and barangay hall of the place where the
property is located. Said notice shall contain the
Valuation and Mode of Compensation
offer of the DAR to pay a corresponding value in
accordance with the valuation set forth in
LABOR LAW REVIEWER
The LBP shall compensate the landowner in their land are disqualified to become beneficiaries
such amounts as may be agreed upon by the under this Program.
landowner and the DAR and the LBP, in accordance
with the criteria provided for in Sections 16 and 17, If, due to the landowner's retention rights or
and other pertinent provisions hereof, or as many be to the number of tenants, lessees, or workers on the
finally determined by the court, as the just land, there is not enough land to accommodate any or
compensation for the land. some of them, they may be granted ownership of
other lands available for distribution under this Act, at
The compensation shall be paid on one of the option of the beneficiaries.
the following modes, at the option of the landowner:
Farmers already in place and those not
Cash payment accommodated in the distribution of privately-owned
lands will be given preferential rights in the distribution
Shares of stock in government-owned or of lands from the public domain.
controlled corporations, LBP preferred shares,
physical assets or other qualified investments in Distribution Limit
accordance with guidelines set by the PARC;
No qualified beneficiary may own more than
Tax credits which can be used against any tax three (3) hectares of agricultural land.
liability;
Payment by Beneficiaries
LBP bonds
Lands awarded pursuant to this Act shall be
Incentives for Voluntary Offers for Sales paid for by the beneficiaries to the LBP in thirty (30)
annual amortization at six percent (6%) interest per
Landowners, other than banks and other annum. The payments for the first three (3) years after
financial institutions, who voluntarily offer their lands the award may be at reduced amounts as established
for sale shall be entitled to an additional five percent by the PARC.
(5%) cash payment.
Transferability of Awarded Lands
Lands acquired by beneficiaries under this

LAND DISTRIBUTION Act may not be sold, transferred conveyed except
through hereditary succession, or to the government,
Qualified Beneficiaries or the LBP, or to other qualified beneficiaries for a
period of ten (10) years: Provided, however, That the
The lands covered by the CARP shall be children or the spouse of the transferor shall have a
distributed as much as possible to landless residents right to repurchase the land from the government or
of the same barangay, or in the absence thereof, LBP within a period of two (2) years. Due notice of the
landless residents of the same municipality in the availability of the land shall be given by the LBP to the
following order of priority: Barangay Agrarian Reform Committee (BARC) of the
barangay where the land is situated. The Provincial
agricultural lessees and share tenants; Agrarian Reform Coordinating Committee
(PARCCOM) as herein provided, shall, in turn, be
regular farmworkers; given due notice thereof of the BARC.
If the land has not yet been fully paid by the

seasonal farmworkers;
beneficiary, the rights to the land may be transferred
or conveyed, with prior approval of the DAR, to any
other farmworkers;
heir of the beneficiary or to any other beneficiary who,
as a condition for such transfer or conveyance, shall
actual tillers or occupants of public lands; cultivate the land himself. Failing compliance herewith,
the land shall be transferred to the LBP which shall
collectives or cooperatives of the above give due notice of the availability of the land in the
beneficiaries; and manner specified in the immediately preceding
paragraph.
others directly working on the land.
In the event of such transfer to the LBP, the
The children of landowners who are latter shall compensate the beneficiary in one lump
qualified under Section 6 of this Act shall be given sum for the amounts the latter has already paid,
preference in the distribution of the land of their together with the value of improvements he has made
parents: and Provided, further, That actual tenant- on the land.
tillers in the landholdings shall not be ejected or
removed therefrom. CORPORATE FARMS
Beneficiaries under Presidential Decree No. Farms Owned or Operated by Corporations
27 who have culpably sold, disposed of, or abandoned or Other Business Associations. In the case of farms
LABOR LAW REVIEWER
owned or operated by corporations or other business Research, production and use of organic
associations, the following rules shall be observed by fertilizers and other local substances necessary
the PARC: in farming and cultivation.
In general, lands shall be distributed directly to

the individual worker-beneficiaries.
In case it is not economically feasible and sound Support Services to Landowners

to divide the land, then it shall be owned
collectively by the worker-beneficiaries who shall The PARC with the assistance of such other
form a workers' cooperative or association which government agencies and instrumentalities as it may
will deal with the corporation or business direct, shall provide landowners affected by the CARP
association. Until a new agreement is entered and prior agrarian reform programs with the following
into by and between the workers' cooperative or services:
association and the corporation or business
association, any agreement existing at the time Investment information financial and counseling
this Act takes effect between the former and the assistance;
previous landowner shall be respected by both
the workers' cooperative or association and the Facilities, programs and schemes for the
corporation or business association. conversion or exchange of bonds issued for
payment of the lands acquired with stocks and
Corporate Landowners bonds issued by the National Government, the
Central Bank and other government institutions
Upon certification by the DAR, corporations and instrumentalities;
owning agricultural lands may give their qualified
beneficiaries the right to purchase such proportion of Marketing of LBP bonds, as well as promoting
the capital stock of the corporation that the agricultural the marketability of said bonds in traditional and
land, actually devoted to agricultural activities, bears on-traditional financial markets and stock
in relation to the company's total assets, under such exchanges; and
terms and conditions as may be agreed upon by them.
Other services designated to utilize productively
SUPPORT SERVICES the proceeds of the sale or such lands for rural
industrialization.
Creation of Support Services Office
There is hereby created the Office of Province-by-Province Implementation

Support Services under the DAR to be headed by an
Undersecretary. The PARC shall provide the guidelines for a
province-by-province implementation of the CARP.
The Office shall provide general support and The ten-year program of distribution of public and
coordinative services in the implementation of the private lands in each province shall be adjusted from
program particularly in carrying out the provision of year to year by the province's PARCCOM in
services to farmer-beneficiaries and affected accordance with the level of operations previously
landowners established by the PARC, in every case ensuring the
support services are available or have been
Support Services to the Beneficiaries programmed before actual distribution is effected.
The PARC shall ensure that support

services to farmers-beneficiaries are provided, such ADMINISTRATIVE ADJUDICATION
as:
Quasi-Judicial Powers of the DAR
Land surveys and titling;
The DAR is hereby vested with the primary
Liberalized terms on direct facilities and jurisdiction to determine and adjudicate agrarian
production loans; reform matters and shall have exclusive original
jurisdiction over all matters involving the
Extension services by way of planting, cropping, implementation of agrarian reform except those falling
production and post-harvest technology transfer, under the exclusive jurisdiction of the Department of
as well as marketing and management Agriculture (DA) and the Department of Environment
assistance and support to cooperatives and and Natural Resources (DENR).
farmers' organizations;
It shall not be bound by technical rules of
Infrastructure such as access trails, mini-dams, procedure and evidence but shall proceed to hear and
public utilities, marketing and storage facilities; decide all cases, disputes or controversies in a most
and expeditious manner, employing all reasonable means
to ascertain the facts of every case in accordance with
justice and equity and the merits of the case. Toward
LABOR LAW REVIEWER
this end, it shall adopt a uniform rule of procedure to exempted from the payment of registration fees, and
achieve a just, expeditious and inexpensive all other taxes and fees for the conveyance or transfer
determination for every action or proceeding before it. thereof; Provided, That all arrearrages in real property
taxes, without penalty or interest, shall be deductible
It shall have the power to summon from the compensation to which the owner may be
witnesses, administer oaths, take testimony, require entitled.
submission of reports, compel the production of books
and documents and answers to interrogatories and Free Registration of Patents and Titles
issue subpoena, and subpoena duces tecum, and
enforce its writs through sheriffs or other duly All Registers of Deeds are hereby directed
deputized officers. It shall likewise have the power to to register, free from payment of all fees and other
punish direct and indirect contempt's in the same charges, patents titles and documents required for the
manner and subject to the same penalties as provided implementation of the CARP.
in the Rules of Court.
Immunity of Government Agencies
Responsible farmer leaders shall be allowed from Undue Interference
to represent themselves, their fellow farmers, or their
organizations in any proceedings before the DAR: No injunction, restraining order, prohibition
Provided, however, That when there are two or more or mandamus shall be issued by the lower courts
representatives for any individual or group, the against the Department of Agrarian Reform (DAR), the
representatives should choose only one amount Department of Agriculture (DA), the Department of
themselves to represent such party or group before Environment and Natural Resources (DENR), and the
any DAR proceedings. Department of Justice (DOJ) in their implementation of
the program.
Notwithstanding an appeal to the Court of
Appeals, the decision of the DAR shall immediately Prohibited Acts and Omissions
executory.
The following are prohibited:
JUDICIAL REVIEW
The ownership or possession, for the purpose of
Certiorari circumventing the provisions of this Act, of
agricultural lands in excess of the total retention
Any decision, order, award or ruling of the limits or award ceilings by any person, natural or
DAR on any agrarian dispute or on any matter juridical, except those under collective ownership
pertaining to the application, implementation, by farmer-beneficiaries.
enforcement, or interpretation of this Act and other
pertinent laws on agrarian reform may be brought to The forcible entry or illegal detainer by persons
the Court of Appeals by certiorari except as otherwise who are not qualified beneficiaries under this Act
provided in this Act within fifteen (15) days from the to avail themselves of the rights and benefits of
receipt of a copy thereof. the Agrarian Reform Program.
The findings of fact of the DAR shall be final The conversion by any landowner of his
and conclusive if based on substantial evidence. agricultural land into any non-agricultural use with
intent to avoid the application of this Act to his
GENERAL PROVISIONS landholdings and to disposes his tenant farmers
of the land tilled by them.
Conversion of Lands
The willful prevention or obstruction by any
After the lapse of five (5) years from its person, association or entity of the
award, when the land ceases to be economically implementation of the CARP.
feasible and sound for agricultural purposes, or the
locality has become urbanized and the land will have The sale, transfer, conveyance or change of the
a greater economic value for residential, commercial nature of lands outside of urban centers and city
or industrial purposes, the DAR, upon application of limits either in whole or in part after the effectivity
the beneficiary or the landowner, with due notice to of this act. The date of the registration of the
the affected parties, and subject to existing laws, may deed of conveyance in the Register of Deeds
authorize the reclassification or conversion of the land with respect to titled lands and the date of the
and its disposition: Provided, That the beneficiary shall issuance of the tax declaration to the transferee
have fully paid his obligation. of the property with respect to unregistered lands,
as the case may be, shall be conclusive for the
Exemptions from Taxes and Fees purpose of this Act.
of Land Transfers
The sale, transfer or conveyance by a beneficiary
Transactions under this Act involving a of the right to use or any other usufructuary right
transfer of ownership, whether from natural or juridical over the land he acquired by virtue of being a
persons, shall be exempted from taxes arising from beneficiary, in order to circumvent the provisions
capital gains. These transactions shall also be of this Act.
LABOR LAW REVIEWER
Penalties
Any person who knowingly or willfully

violates the provisions of this Act shall be punished by
imprisonment of not less than one (1) month to not
more than three (3) years or a fine of not less than
one thousand pesos (1,000.00) and not more than
fifteen thousand pesos (P15,000.00), or both, at the
discretion of the court.
If the offender is a corporation or

association, the officer responsible therefor shall be
criminally liable.

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LABOR LAW REVIEWER

1 SAINT LOUIS UNIVERSITY BAR OPERATIONS

Art. 3. Declaration of basic policyenunciates labor

Promote full employment;

LABOR Regulate the relations between workers and

BUT every labor dispute will NOT be

Amended by the Comprehensive Agrarian Reform Law (RA

Justice is for the deserving, to be dispensed

Except as limited by special laws, an TITLE I

Rules and regulations cannot contradict or PRIVATE RECRUITMENT ENTITYany

The POEA has absorbed the functions of the OEDB,

PD 1167, which allows construction JURISDICTION TRANSFERRED TO THE

HOWEVER, under RA 8042, if the illegal

The POEA may motu propio undertake Direct hiring by

Desertion or abandonment; RATIONALE FOR THE PROHIBITION

Embezzlement of company funds or of money MINIMUM EMPLOYMENT CONDITIONS OF

Theft or Robbery; Guaranteed wages for regular working hours and

Free and adequate board and lodging facilities or

Those not otherwise disqualified by law or Change of ownership or relationship of

Private employment agencies Art. 31. Bonds

Private recruitment entities Cash bonds filed by applicants for license or

Art.26. Travel agencies are prohibited from

To furnish or publish any false notice or

Licensees or holders of authority or their To influence or attempt to influence any person or

Art. 38. Illegal recruitment

QUALIFYING CIRCUMSTANCES THAT WOULD EXCEPTIONS TO THE PROHIBITION

Art. 42. Submission of a list

Any alien seeking admission to the

MANPOWERportion of the nations Art. 52. Incentive scheme

ENTREPRENEURSHIPtraining for self- Art. 53. Council Secretariat

Art. 54. Regional manpower development offices

OBSOLETE. See instead Sec. 14, TESDA Law.

Art. 47. National Manpower Skills Center

OBSOLETE. See instead Secs. 19 and 20 TITLE II

Art. 48. Establishment and formulation of skills standards CHAPTER I

Art. 58. Definition of Terms

Skills standards need to be defined (how APPRENTICEis a worker who is covered by

requires more than 3 months of practical training

Art. 60. Employment of apprentices Art. 62. Signing of apprenticeship agreement

Only employers in the highly technical Every apprenticeship agreement shall be

Training centers of the DOLE; or

Art. 71. Deductibility of training costs

The Sec. of Labor may authorize the hiring

Required by the training program curriculum

Art. 74. When learners may be hired With a commitment to

The names and addresses of the employer and CHAPTER III

The rate of pay of the handicapped worker which EXCEPT: M GF DF

HEALTH WORKERSinclude resident The time during which an employee is inactive by

MEAL PERIODS Employee does not perform any productive work

If less than 20 minutes, it becomes only a rest NECESSARY WORK

30% of 150% of regular wage if done on a

30% of 200% of regular wage if done on a

COMPULSORY OVERTIME COMPRESSED WORKWEEK

The value of the benefits that will accrue to the

KEYWORD: GF DM FR LOSS PREVENTION To prevent loss or

MANAGERIAL employees WEATHER Where work is necessary to avail

Work on RD falling on national special day = 50%

Work on RD falling on regular holiday = 30% of Not worked = no compensation/ no premium

If WORKED, employee is entitled to regular

CHAPTER III If WORKED and it falls on employees REST

GENERAL RULE: monthly paid employees are

Good Friday movable date An employee who has rendered at least 1

Labor Day May 1 Benefit applies to all EXCEPT: