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LABOR STANDARDS (Atty.

Paulino Ungos) San Beda College Alabang

DISCLAIMER: The Provisions used in this Code is based on LIMITATION OF RULES AND REGULATIONS: It cannot
the updated version of the Labor Code Codal, not on the Book enlarge or amend the provisions of the Labor Code.
of Atty. Paulino Ungos.
ART. 6. Applicability. – All rights and benefits granted
This work is not intended to replace the book of Atty. Ungos, it to workers under this Code shall, except as may otherwise be
merely highlights the important topics covered therein. provided herein, apply alike to all workers, whether
agricultural or non-agricultural.
Watch out for the stars  it is best to memorize this provision GENERAL RULE: It applies only to employees in the Private
or paragraph.
Sector, whether agricultural or non-agricultural.
PRESIDENTIAL DECREE NO. 442
A. With regard to normal working hours of work, meal periods,
PRELIMINARY TITLE night-shift differential, overtime pay, weekly rest day, rest day
and special day premium, regular holiday pay, service incentive
Chapter I leave and service charges, the exceptions are:
GENERAL PROVISIONS 1) Government employees, including those employed in
ART. 1. Name of Decree. – This Decree shall be known Government-Owned and Controlled Corporations;*
as the “Labor Code of the Philippines.” 2) Managerial employees;
3) Members and employees of the managerial staff;
ART. 2. Date of Effectivity. – This Code shall take effect 4) Field personnel;
six (6) months after its promulgation. 5) Members of the family of the employer who are
dependent on him for support;
PROMULGATION: May 1, 1974 6) Domestic helpers;
EFFECTIVITY: November 1, 1974 7) Persons in the personal service of another; and
8) Workers paid by results.
ART. 3. Declaration of Basic Policy. - The State shall B. With regard to the term “wages,” the exceptions are:
afford protection to labor, promote full employment, ensure
1) Those mentioned above;
equal work opportunities regardless of sex, race or creed
2) Farm tenancy and leasehold;
and regulate the relations between workers and employers.
3) Domestic service;
The State shall assure the rights of workers to self-
4) Persons working in their respective homes in needle work;
organization, collective bargaining, security of tenure, and
and
just and humane conditions of work.
5) Persons working in cottage industries.
REASON: To raise the worker to equal footing with the C. With regard to retirement benefits, the exceptions are:
employer. Hence, the construction of this Code in case of doubt, 1) Those enumerated in “A”;
is in favour of labor. 2) Employees in retail and service establishments employing
EXTENT OF PROTECTION: Not only against oppressive not more than 10 employees; and
employers but also against unscrupulous union leaders. 3) Workers of agricultural establishments employing not more
LIMITATIONS: than 10 employees.
a) Cannot be used to defeat the rights of an employer.
b) Cannot be used as an excuse to distribution charities at the *GOCC’s with special charter are under the Civil Service Law,
expense of an employer. hence they are not included. However, if the GOCC has a
c) Not available when both parties have violated the law because Special Charter and is registered in the Securities and Exchange
neither party is entitled to protection. Commission (SEC), the employees thereof are covered by the
Labor Code.
ART. 4. Construction in Favor of Labor. - All doubts in To fall within the coverage of the Labor Code, it is
the implementation and interpretation of the provisions of essential that there be employer-employee relationship.
this Code, including its implementing rules and regulations,
shall be resolved in favour of labor. ELEMENTS OF EMPLOYER-EMPLOYEE RELATIONSHIP:
(PWES!)
REASON: Those who have less in life should have more in law. a) Selection and Engagement of the employees;
APPLICABILITY: Applies only when there is a doubt. When b) Payment of Wages;
there is no doubt, there is no room for interpretation. c) Power of dismissal; and
d) Power to control the employees conduct.
ART. 5. Rules and Regulations. – The Department of Among the four elements, the power of control is the most
Labor and Employment (DOLE) and other Government important element that the other elements may even be
agencies charged with the administration and enforcement disregarded.
of this Code or any of its parts shall promulgate the
When asked, what determines the existence of an employer-
necessary implementing rules and regulations. Such rules
employee relationship, the answer is:
and regulations shall become effective fifteen (15) days after
announcement of their adoption in newspapers of general - (MEANS and ENDS) That the employer has control over the
circulation. Means and the Ends. In other words, the employer has control
not only over the results for which the employee was hired
At least 2 newspapers (newspaperS nga eh) for, but also the method how the results are to be attained.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Does the employer-employee relationship exist in the legitimate grievances being one of the fundamental
following professions? objectives of the New Society, it has become imperative to
- INSURANCE AGENTS – If salaried, keep definite hours, start reformation with the emancipation of the tiller of the
and work under the control and supervision of the company, soil from his bondage.
YES. If they are merely registered who work on commission ART. 8. Transfer of Lands to Tenant-Workers. – Being a
basis, NO. vital part of the labor force, tenant farmers on private
- COLLECTION AGENTS – When the employer is only agricultural lands primarily devoted to rice and corn under
interested in the results and does not concern himself how a system of share crop or lease tenancy whether classified as
the employee will get the results, NO. landed estate or not shall be deemed owner of a portion
- IN-HOUSE LAWYERS – NO constituting a family size farm of five (5) hectares, if not
- PROFESSORS – YES irrigated an three (3) hectares, if irrigated.
- WORKING SCHOLARS – If (a) there is a training In all cases, the landowner may retain an area of not
agreement; and (b) the training program is duly accredited more than seven (7) hectares is such landowner is cultivating
by the proper government agency, YES. such area or will now cultivate it.
- CONSULTING OR VISITING PHYSICIANS – Generally,
NO. But if the case involves medical negligence, YES. ART. 9. Determination of Land Value. – For the purpose
- JEEPNEY DRIVERS or TAXI DRIVERS UNDER THE of determining the cost of the land to be transferred to the
“BOUNDARY SYSTEM” – Yes. tenant-farmer, the value of the land shall be equivalent to
- STEVEDORES OR ARRASTRE WORKERS – Between two and one-half (2-1/2) times the average harvest of three
the shipping company and said workers, NO. But if said (3) normal crop years immediately preceding the
employees acted as agents of the shipping company, YES. promulgation of Presidential Decree No. 27 on October 21,
- SUGAR FARM WORKERS – Between the sugar central 1972.
owner and the sugar planters, NO. The total cost of the land, including interest at the rate
- GOLF CADDIES - NO of six percent (6%) per annum, shall be paid by the tenant in
Cases where the Employer-Employee relationship is fifteen (15) years of fifteen (15) equal annual amortizations.
suspended: (MOLDS) In case of default, the amortization due shall be paid by
the farmer’ cooperative in which the defaulting tenant-
1) Employee fulfils a Military or Civic duty;
farmer is a member, with the cooperative having a recourse
2) During Off-Season, in case of regular seasonal employees;
against him.
3) When the employee is Laid-off not exceeding 6 months;
The government shall guaranty such amortizations with
4) Drydocked or under repair fishing vessels; and
shares of stock in government-owned and government-
5) When the employee is under Suspension;
controlled corporations.

When is the E-E Relationship terminated? ARTI. 10. Conditions of Ownership. — No title to the
land owned by the tenant-farmers shall be actually issued to
- Dismissal of employee; a tenant-farmer unless and until the tenant has become a full
- Resignation of employee; fledged member of a duly recognized farmer's cooperative.
- Abandonment of employee of his duties; and
- Expiration of employment period. Title to the land acquired pursuant to Presidential
Decree No. 27 or the Land Reform Program of the
Government shall not be transferable except by hereditary
What are the factors which do not interrupt E-E
succession or to the Government in accordance with the
relationship?
provisions of this Code, the Code of Agrarian Reforms and
- Leave of absence with pay other existing laws and regulations.
- Illegal dismissal
- Strike ART. 11. Implementing Agency. — The Department of
HOW TO DETERMINE IF WHAT IS PAID IS WAGES: Agrarian Reforms shall promulgate the necessary rules and
regulations to implement the provisions of this Chapter.
a) If paid in consideration of labor being performed, the
compensation is considered as “wages:”
b) If paid in consideration of the results or finished work, the BOOK ONE
compensation is not considered as wages. Pre-Employment
ART. 12. Statement of Objectives. — It is the policy of the
Chapter II State:
EMANCIPATION OF TENANTS (a) To promote and maintain a state of full
employment through improved manpower training,
Opinio non Juris: This part was not discussed by Atty. Ungos. allocation and utilization.
I included this part simply because these are provisions of the (b) To protect every citizen desiring to work locally or
law. overseas by securing for him the best possible terms and
conditions of employment;
ART. 7. Statement of Objectives. – Inasmuch as the old (c) To facilitate a free choice of available employment
concept of land ownership is concerned by a few has by persons seeking work in conformity with the national
spawned valid and legitimate grievances that gave rise to interest;
violent conflict and social tension and the redress of such

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

(d) To facilitate and regulate the movement of workers registering with a particular employment office of job
in conformity with the national interest; opportunities in other parts of the country as well as job
(e) To regulate the employment of non-resident aliens; opportunities abroad;
(f) To strengthen the network of public employment (c) To develop and organize programs that will
offices and to undertake the phasing out of private fee- facilitate occupational, industrial and geographical mobility
charging employment agencies; or labor and provide assistance in the relocation of workers
(g) To insure careful selection of Filipino workers for from one area to another; and
overseas employment in order to protect the good name of (d) To require any person, establishment, organization
the Philippines abroad. or institution to submit such employment information as
may be prescribed by the Secretary of Labor.
TITLE I ART. 15. Power to Phase Out. — (a) The Bureau of
Recruitment and Placing of Workers Employment Services shall primarily be responsible for
developing and monitoring a comprehensive employment
CHAPTER I program. It shall have the power and duty:
General Provisions 1. To formulate and develop plans and programs to
ART. 13. Definition of Terms. — (a) "Worker" means implement the employment promotion objectives of
any member of the labor force, whether employed or this Title;
unemployed. 2. To establish and maintain a registration and/or
 (b) "Recruitment and placement" refers to any act of licensing system to regulate private sector
canvassing, enlisting, contracting, transporting, utilizing, participation in the recruitment and placement of
hiring or procuring workers, including referrals, contact workers, locally and overseas, and to secure the best
services, promising employment or advertising for possible terms and conditions of employment for
employment locally or abroad, whether for profit or not: Filipino contract workers and compliance therewith
Provided, That whenever two or more persons are in any under such rules and regulations as may be issued by
manner promised or offered employment for a fee, the the Minister of Labor;
individual or entity making such offer or promise shall be 3. To formulate and develop employment programs
deemed engaged in recruitment and placement. designed to benefit disadvantaged groups and
(c) "Private fee-charging employment agency" means communities;
any person or entity engaged in recruitment and placement 4. To establish and maintain a registration and/or
of workers for a fee which is charged, directly or indirectly, work permit system to regulate the employment of
from the workers or employers or both. aliens;
(d) "License" means a document issued by the 5. To develop a labor market information system in
Department of Labor authorizing a person or entity to aid of proper manpower and development planning;
operate a private employment agency. 6. To develop a responsive vocational guidance and
(e) “Private recruitment agency” means any person or testing system in aid of proper human resources
association engaged in the recruitment and placement of allocation; and
workers, locally or overseas, without charging, directly or 7. To maintain a central registry of skills, except
indirectly, any fee from the workers or employers. seamen.
(f) “Authority” means a document issued by the (b) The regional offices of the Ministry of Labor shall
Department of Labor authorizing a person or association to have the original and exclusive jurisdiction over all matters
engage in recruitment and placement activities as a private or cases involving employer-employee relations including
recruitment entity. money claims, arising out of or by virtue of any law or
(g) “Seaman” means any person employed in a vessel contracts involving Filipino workers for overseas
engaged in maritime navigation. employment except seamen: Provided, That the Bureau of
(h) “Overseas employment” means employment of a Employment Services may, in the case of the National
worker outside the Philippines. Capital Region, exercise such power, whenever the Minister
(i) “Emigrant” means any person, worker or of Labor deems it appropriate. The decision of the regional
otherwise, who emigrates to a foreign country by virtue of offices of the Bureau of Employment Services, if so
an immigrant visa or resident permit or its equivalent. authorized by the Minister of Labor as provided in this
Article, shall be appealable to the National Labor Relations
The phrase shall be deemed merely creates a presumption that Commission upon the same grounds provided in Article 223
a person is engaged in recruitment and placement whenever he hereof. The decisions of the National Labor Relations
deals for a fee with two or more persons. Commission shall be final and inappealable.
(c) The Minister of Labor shall have the power to
 MIDTERMS: Read Darvin vs. CA (page 41) impose and collect fees based on rates recommended by the
Bureau of Employment Services. Such fees shall be
deposited in the National Treasury as a special account of
ART. 14. Employment promotion. — The Secretary of
the General Fund, for the promotion of the objectives of the
Labor shall have the power and authority to:
Bureau of Employment Services, subject to the provisions of
(a) To organize and establish new employment offices
Section 40 of Presidential Decree No. 117.
in addition to the existing employment offices under the
Department of Labor as the need arises; SECTION 40.Special Budgets for Lump-Sum
(b) To organize and establish a nationwide job Appropriations. — Expenditures from lump-sum
clearance and information system to inform applicants appropriations authorized for any purpose or for any

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

department, office or agency in any annual General 3. To recruit and place workers for overseas
Appropriations Act of other Act and from any fund of employment on a government-to-government arrangement
the National Government, shall be made in accordance and in such other sectors as policy may dictate; and
with a special budget to be approved by the President, 4. To act as secretariat for the Board of Trustees of the
which shall include but shall not be limited to the Welfare Training Fund for Overseas Workers.
number of each kind of position, the designations, and
the annual salary proposed for which an appropriation As mentioned earlier, the Philippine Overseas Employment
is intended. This provision shall be applicable to all Administration (POEA) took over the functions of Overseas
revolving funds, receipts which are automatically Employment Development Board.
made available for expenditure for certain specific Overseas Employment – employment of a worker outside the
purposes, aids and donations for carrying out certain Philippines under a valid contract
activities, or deposits made to cover the cost of special
services to be rendered to private parties. Unless Migrant Worker – a person who holds and overseas
otherwise expressly provided by law, when any Board, employment; applies to both land based workers and seafarers
head of department, chief of bureau or office, or any
other official, is authorized to appropriate, allot, The POEA has the original and exclusive jurisdiction to hear
distribute or spend any lump-sum appropriation or and decide:
special, bond, trust, and other funds, such authority (a) All cases which are administrative in character, involving or
shall be subject to the provisions of this section. arising out of violations of recruitment laws, rules and
regulations, including refund of fees collected from workers and
In case of any lump-sum appropriation for violations of the conditions for the issuance of license to recruit
salaries and wages of temporary and emergency landbased overseas workers or seafarers; and
laborers and employees, including contractual (b) Disciplinary action cases against migrant workers or
personnel, provided in any General Appropriation Act seafarers, foreign employers and principals.
or other Acts, the expenditure of such appropriation
shall be limited to the employment of persons paid by
the month, by the day, or by the hour.  MIDTERM Q: What is the RELIEF of a migrant
worker?
E.O. 797 abolished the Bureau of Employment Services. In its A: Double the claims plus 10% as attorney’s fees.
stead, the Bureau of Local Employment (domestic functions)
Q: What is the REMEDY of a migrant worker who wants to
and the Philippine Overseas Employment Administration
bring action against his employer?
(overseas functions) were created.
A: File a complaint in POEA with the right to appeal to the
Secretary of Labor and Employment fifteen (15) days from the
 ART. 16. Private Recruitment. – Except as provided in receipt of the decision of the POEA.
Chapter II of this Title, no person or entity other than the
public employment offices, shall engage in the recruitment Q: What are the Remedies of a locally or domestic
and placement of workers. employee?
A: See Articles 128 and 129.
Q: Who are qualified to engage in recruitment and
placement agencies? Q: What if the issue was decided upon by a court in a
foreign country?
A: Generally, only public employment offices can engage in A: File a case in the courts of justice.
recruitment and placement of workers, whether for local or
overseas employment. By way of exception, the private sector is Note: Differentiate a relief from a remedy. Remedies,
given the privilege to engage in recruitment and placement, but According to Atty. Ungos, are the procedures which are
limited to the following: available to the employee to assert any right granted to him by
(a) Private Employment Agency (PEA); law, while Reliefs are the awards that may be granted to an
(b) Private Recruitment Entity (PRE); aggrieved employee after the court finds fault against his
(c) Shipping and Manning Agency (SMA); and employer.
(d) Such other persons or entities as may be authorized by the
Secretary of Labor and Employment.  ART. 18. Ban on Direct-Hiring. – No employer may hire
ART. 17 Overseas Employment Development Board. — a Filipino worker for overseas employment except through
An Overseas Employment Development Board is hereby the Boards and entities authorized by the Secretary of
created to undertake, in cooperation with relevant entities Labor. Direct-hiring by members of the diplomatic corps,
and agencies, a systematic program for overseas international organizations and such other employers as
employment of Filipino workers in excess of domestic needs may be allowed by the Secretary of Labor is exempted from
and to protect their rights to fair and equitable employment this provision.
practices. It shall have the duty:
GENERAL RULE: No foreign employer may directly hire
1. To promote the overseas employment of Filipino
Filipino workers.
workers through a comprehensive market promotion and
development program; EXCEPTIONS:
2. To secure the best possible terms and conditions of (a) Members of diplomatic corps;
employment of Filipino contract workers on a government- (b) International organizations; and
to-government basis and to ensure compliance therewith;

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

(c) Other employers who may be allowed by the Secretary to ART. 23. (Repealed by E.O. 797)
directly hire their workers.
ART. 24. (Repealed by E.O. 247)
Name Hire – a worker who is able to secure an overseas
employment on his own without the assistance or participation
of any agency. CHAPTER II
Regulation of Recruitment and Placement Activities
ART. 19. (Superseded by B.P. Blg. 79 or the Commission
on Filipino Overseas) ART. 25. Private Sector Participation in the Recruitment
and Placement of Workers. — Pursuant to national
ART. 20. (Superseded by E.O. 797or An Act Reorganizing development objectives and in order to harness and
the Ministry of Labor and Employment, creating the Philippine maximize the use of private sector resources and initiative in
Overseas Employment Administration, and for other purposes) the development and implementation of a comprehensive
employment program, the private employment sector shall
ART. 21. Foreign Service Role and Participation. – To participate in the recruitment and placement of workers,
provide ample protection to Filipino workers abroad, the locally and overseas, under such guidelines, rules and
labor attaches, the labor reporting officers duly designated regulations as may be issued by the Secretary of Labor.
by the Secretary of Labor and the Philippine diplomatic or
consular officials concerned shall, even without prior Recruitment and Placement of Employees for Local
instruction or advice from the home office, exercise the Employment.
power and duty: A private recruitment and placement agency for local
(a) To provide all Filipino workers within their employment can engage in recruitment and placement only
jurisdiction assistance on all matters arising out of under the following conditions:
employment; (a) It must have a license to operate as a recruitment and
(b) To insure that Filipino workers are not exploited or placement agency; and
discriminated against; (b) It must have an authority to engage in recruitment activities
(c) To verify and certify as requisite to authentication in a particular region.
that the terms and conditions of employment in contracts
involving Filipino workers are in accordance with the Labor Apart from the license, a private employment agency for local
Code and rules and regulations of the Overseas Employment employment is obliged to secure an authority to recruit
Development Board and National Seamen Board; workers within a particular region.
(d) To make continuing studies or researches and Recruitment and Placement of Employees for Overseas
recommendations on the various aspects of the employment Employment.
market within their jurisdiction;
(e) To gather and analyze information on the A. For Land-Based Overseas Employment
employment situation and its probable trends, and to make (a) It should have a license to operate; and
such information available; and (b) It should recruit and place workers only for registered
(f) To perform such other duties as may be required of and accredited principals by the POEA.
them from time to time. B. For Overseas Maritime Employment
(a) It should have a license to operate; and
 ART. 22. Mandatory Remittance of Foreign Exchange (b) It should recruit and place workers only for registered
Earnings. — It shall be mandatory for all Filipino workers and accredited principals by the POEA.
abroad to remit a portion of their foreign exchange earnings (c) The vessels are enrolled with the POEA.
to their families, dependents, and/or beneficiaries in the
country in accordance with rules and regulations prescribed Duration of License:
Provisional License – One (1) year
by the Secretary of Labor and Employment.
Private Employment Agency – Two (2) years starting from the
80% of basic salary – seamen and mariners; date of issuance and valid all over the Philippines.
70% - workers of Filipino contractors and construction Foreign Private Employment Agency – Four (years) years.
companies;
70% - doctors, engineers, teachers, nurses and other professional Renewal of License:
workers whose employment contracts provide for free - Must be renewed within thirty (30) days before its
board and lodging facilities; expiration. It must be renewed on or before it expiration.
50% - other professionals whose employment contracts do not - Renewal of license will not be allowed if:
provide for free board and lodging; (a) The agency has been convicted by the regular courts
50% - domestic helpers and other service workers; and for violation of the Labor Code; or
50% - other workers not falling under the aforementioned (b) The agency’s license has been previously revoked.
categories. PROVISIONAL LICENSE – is a permit issued to a new
EXCEPTIONS TO THE REMITTANCE: recruitment or manning agency for a limited period of one (1)
a) Immediate family members, dependents and beneficiaries are year, within which the period, the agency shall comply with its
residing with him abroad; undertaking to deploy one hundred land-based workers or
b) Filipino servicemen working in U.S. military installations; fifty seafarers to its new market. Non compliance will result in
and expiration of the provisional license.
c) Immigrants and Filipino professionals and employees
working with the United Nations agencies.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Advertisement for Overseas Jobs. Exceptions:


a) Workers themselves were the ones who persuaded the agency
A. For Actual Job Vacancies – Licensed employment or to send them back abroad despite their knowledge that the
manning agencies may advertise for actual job vacancies foreign employer might not be able to pay their wages;
without prior approval from the POEA, if covered by b) When the workers were recruited by the supposed agency
manpower requests by registered/accredited foreign principals without the latter’s consent.
and projects.
Read: Feagle Const. Corp. vs. Gayda (page118)
B. For Manpower Pooling – Licensed employment agencies
may advertise for manpower pooling without prior approval ART. 26. Travel Agencies Prohibited to Recruit. — Travel
from the POEA under the following conditions: agencies and sales agencies of airline companies are
(a) The advertisement should indicate in bold letters that it is for prohibited from engaging in the business of recruitment and
manpower pooling only and that no fees will be collected; and placement of workers for overseas employment whether for
(b) The advertisement indicates the name, address and POEA profit or not.
license number of the agency, name of worksite of the
prospective registered/accredited principal and skill categories Persons Disqualified From Engaging in Overseas
and qualification standards, in case of land-based workers; or the Recruitment:
name, address and POEA license number of the agency, name of (a) Travel agencies;
the ship and skill categories and qualificiation standards, in case (b) Sales agencies of airline companies;
of seafarers. (c) Officers or members of the Board of any corporation or
members of a partnership engaged as a travel agency;
Period to Deploy an Overseas Worker or Seafarer (d) Persons, partnerships or corporations which have:
Within sixty (60) days from the date of issuance of the overseas (i) Derogatory records with the NBI, POEA;
employment certificate. (ii) Probable cause or prima facie evidence against them for
illegal recruitment;
Minimum Provisions for Employment Contracts of Land- (iii) Been convicted of illegal recruitment or crimes
Based Workers involving moral turpitude; and
(a) Guaranteed Wages whichever is highest;* (iv) Their licenses revoked or cancelled.
(b) Free transportation to and from worksite; (e) Any officer or employee of the DOLE, POEA, OWWA,
(c) Free food and accommodation, or offsetting benefit; DFA, or other government agencies directly involved in the
(d) Just/authorized causes for termination of the contract; implementation of R.A. No. 8042 or P.D. 442.
(e) Other matters to be considered by the POEA. (f) Relatives within the fourth degree of consanguinity or
*Highest of the following: affinity of those officers mentioned in the preceding
a) Minimum wage in host country number; and
b) Minimum wage according to a bilateral agreement of (g) Persons, parthers, officers and directors or corporations
international convention; or whose license has been revoked or cancelled for violation
c) Minimum wage in the Philippines of recruitment laws.

Repatriation of Workers and Seafarers  ART. 27. Citizenship Requirement. — Only Filipino
Gen. Rule: The repatriation of land-based workers or seafarers citizens or corporations, partnerships or entities at least
and the transport of their personal belongings shall be the sevent-five percent (75%) of the authorized and voting
primary responsibility of the agency which recruited or deployed capital stock of which is owned and controlled by Filipino
the worker or seafarer. All costs attendant to repatriation shall be citizens shall be permitted to participate in the recruitment
borne by the principal or agency concerned including the and placement of workers, locally or overseas.
repatriation of the remains and transport of the personal
belongings of the deceased worker or seafarer and all costs  ART. 28. Capitalization. — All applicants for authority
attendant thereto. to hire or renewal of license to recruit are required to have
Exception: If the termination of the employment is due to the substantial capitalization as determined by the Secretary of
fault of the worker or seafarer, the principal or agency shall not Labor.
in any manner be responsible for his repatriation. LOCAL OVERSEAS
Without prior determination of the cause of termination of the Single Proprietor
employment, the principal or agency shall advance the cost of or Partnership
P200,000 P2,000,000
the plane fare. If it is later found that the termination is due to (Minimum Net
the worker’s or seafarer’s fault, the principal or agency may Worth)
recover the cost of repatriation. Corporation
P500,000 P2,000,000
(Paid-up Capital)
Solidary Liability of Recruitment or Manning Agency
The recruitment agency and foreign employer shall assume joint
and solidary liability for all claims and liabilities which may
 ART. 29. Non-transferability of License or Authority. —
arise in connection with the implementation of the contract, No license or authority shall be used directly or indirectly by
including but not limited to payment of wages, death and any person other than the one in whose favor it was issued at
disability compensation and repatriations. any place other than that stated in the license or authority be
transferred, conveyed or assigned to any other person or
entity. Any transfer of business address, appointment or

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

designation of any agent or representative including the been garnished, the agency shall replenish the same. Failure to
establishment of additional offices anywhere shall be subject replenish shall cause the suspension of the license.
to the prior approval of the Department of Labor.
 ART. 32. Fees to be Paid by Workers. – Any person
Note: applying with a private fee-charging employment agency for
- Cannot be used by those other than those in whose favour it employment assistance shall not be charged any fee until he
was issued has obtained employment through its efforts until he has
- Cannot be used at any place other than those stated obtained employment through its efforts or has actually
- Cannot be transferred, conveyed or assigned commenced employment. Such fee shall be always covered
- Any changes in the information in the license must be subject with the appropriate receipt clearly showing the amount
to the approval of the Department of Labor paid. The Secretary of Labor shall promulgate a schedule of
Effects to the license allowable fees.
Revoke – Death of a sole proprietor Placement fees on workers:
Surrender – Change of ownership of local recruitment agency LOCAL - not to exceed 20% of the worker’s first month’s basic
Revoke - Change of ownership of overseas recruitment agency salary
Revoke – Dissolution of partnership
Revoke – Upgrading from single proprietorship or partnership to OVERSEAS – equivalent to one month salary unless the host
corporation country does not allow charging of placement fees
ART. 30. Registration Fees. – The Secretary of Labor Service Fee
shall promulgate a schedule of fees for the registration of all LOCAL – not to exceed 20% of the worker’s annual salary
applicants for license or authority.
OVERSEAS – chargeable against the principal
Note:
Local – P5,000 ART. 33. Reports on Employment Status. – Whenever the
Overseas – P50,000 public interest requires, the Secretary of Labor may direct
all persons or entities within the coverage of this Title to
 ART. 31. Bond. — Any applicant for license or authority submit a report on the status of employment, including job
shall post such cash and surety bonds as determined by the vacancies, details of job requisitions, separation from jobs,
Secretary of Labor to guarantee compliance with the wages, other terms and conditions and other employment
prescribed recruitment procedures, rules and regulations, data.
and terms and conditions of employment as may be ART. 34. Prohibited Practices. — It shall be unlawful for
appropriate. any individual, entity, licensee or holder of authority:
Company posting the bond is still liable even if it is not included (a) To charge or accept directly or indirectly any
as a party in the complaint. amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor, or to
Amount of Bond make a worker pay any amount greater than that actually
LOCAL EMPLOYMENT: received by him as a loan or advance;
Cash Bond – P25,000 (b) To furnish or publish any false notice or
Surety Bond – P100,000 information or document in relation to recruitment or
OVERSEAS EMPLOYMENT employment;
Escrow Deposit – P1,000,000 (c) To give any false notice, testimony, information or
Surety Bond – P100,000 document or commit any act of misrepresentation for the
purpose of securing a license or authority under this Code;
Appeal Bond (d) To induce or attempt to induce a worker already
The bond required under Article 31 is different from the bond employed to quit his employment in order to offer him to
required under Article 223 of the Labor Code. The bond under another unless the transfer is designed to liberate a worker
the latter is a requirement for the perfection of an appeal. The from oppressive terms and conditions of employment;
former is intended to insure the payment of monetary award in (e) To influence or attempt to influence any person or
the event that the judgment is affirmed on appeal. entity not to employ any worker who has not applied for
Garnishment of Bonds employment through his agency;
The bond under Article 31 is intended to answer only (f) To engage in the recruitment or placement of
employment-related claims and violations of labor laws. workers in jobs harmful to public health or morality or to
Therefore, it cannot be garnished to satisfy a claim against a the dignity of the Republic of the Philippines;
recruitment agency that is not employment-related or does not (g) To obstruct or attempt to obstruct inspection by
pertain to violations of labor laws. the Secretary of Labor or by his duly authorized
representatives;
Effect of a Valid Garnishment (h) To fail to file reports on the status of employment,
As soon as an Order or Notice of Garnishment is served placement vacancies, remittance of foreign exchange
upon the Bank, the deposit in escrow shall no longer be earnings, separation from jobs, departures and such other
considered sufficient. The POEA shall then serve the matters or information as may be required by the Secretary
recruitment or manning agency to replenish its escrow deposit. of Labor;
Within 15 days from date of receipt of notice from the (i) To substitute or alter employment contracts
POEA that the bonds or deposit in escrow, or any part of it had approved and verified by the Department of Labor from the

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

time of actual signing thereof by the parties up to and Qualified Illegal Recruitment:
including the period of expiration of the same without the (a) Committed by a syndicate – carried out by a group of three
approval of the Secretary of Labor; (3) or more persons conspiring or confederating with one
(j) To become officer or member of the Board of any another in carrying out any illegal or unlawful recruitment
corporation engaged in travel agency or to be engaged activity; or
directly or indirectly in the management of a travel agency; (b) Committed in large scale – committed against three or more
(k) To withhold or deny travel documents from persons, individually or as a group.
applicant workers before departure for monetary or
financial considerations other than those authorized under Qualified illegal recruitment is considered an offense involving
this Code and its implementing rules and regulations. economic sabotage.

ART. 35. Suspension and/or Cancellation of License or Illegal Recruitment and Estafa
Authority. — The Minister of Labor shall have the power to A person who violates any of the provisions under Article 13(b)
suspend or cancel any license or authority to recruit and Article 34 of the Labor Code can be charged and convicted
employees for overseas employment for violation of rules separately of illegal recruitment and estafa because illegal
and regulations issued by the Minister of Labor, the recruitment is a malum prohibitum where criminal intent is not
Overseas Employment Development Board, or for violations necessary for conviction, while estafa is a malum in se where
of the provisions of this and other applicable laws, General criminal intent is necessary for conviction.
Orders and Letters of Instructions. Prescription of Action
CHAPTER III 3 years – Illegal recruitment cases under the Labor Code
Miscellaneous Provisions 5 years – Illegal recruitment cases covered by the Migrant
Workers Act
ART. 36. Regulatory Powers. —The Secretary of Labor 20 years – Cases involving economic sabotage
shall have the power to restrict and regulate the recruitment
and placement activities of all agencies within the coverage ART. 39. Penalties. - (a) The penalty of life
of this Title and is hereby authorized to issue orders and imprisonment and a fine of One Hundred Thousand Pesos
promulgate rules and regulations to carry out the objectives (P1000,000.00) shall be imposed if illegal recruitment
and implement the provisions of this Title. constitutes economic sabotage as defined herein;
(b) Any licensee or holder of authority found violating
ART. 37. Visitorial Power. – The Secretary of Labor or or causing another to violate any provision of this Title or its
his duly authorized representatives may, at any time, inspect implementing rules and regulations shall, upon conviction
the premises, books of accounts and records of any person or thereof, suffer the penalty of imprisonment of not less than
entity covered by this Title, require it to submit reports two years nor more than five years or a fine of not less than
regularly on prescribed forms, and act on violation of any P10,000 nor more than P50,000, or both such imprisonment
provisions of this Title. and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of
ART. 38. Illegale Recruiment. — (a) Any recruitment authority under this Title found violating any provision
activities, including the prohibited practices enumerated thereof or its implementing rules and regulations shall, upon
under Article 34 of this Code, to be undertaken by non- conviction thereof, suffer the penalty of imprisonment of not
licensees or non-holders of authority, shall be deemed illegal less than four years nor more than eight years or a fine of
and punishable under Article 39 of this Code. The not less than P20,000 nor more than P100,000 or both such
Department of Labor and Employment or any law imprisonment and fine, at the discretion of the court;
enforcement officer may initiate complaints under this (d) If the offender is a corporation, partnership,
Article. association or entity, the penalty shall be imposed upon the
(b) Illegal recruitment when committed by a syndicate officer or officers of the corporation, partnership,
or in large scale shall be considered an offense involving association or entity responsible for violation; and if such
economic sabotage and shall be penalized in accordance with officer is an alien, he shall, in addition to the penalties herein
Article 39 hereof. prescribed, be deported without further proceedings;
Illegal recruitment is deemed committed by a syndicate
if carried out by a group of three (3) or more persons (e) In every case, conviction shall cause and carry the
conspiring and/or confederating with one another in automatic revocation of the license or authority and all the
carrying out any unlawful or illegal transaction, enterprise permits and privileges granted to such person or entity
or scheme defined under the first paragraph hereof. Illegal under this Title, and the forfeiture of the cash and surety
recruitment is deemed committed in large scale if committed bonds in favor of the Overseas Employment Development
against three (3) or more persons individually or as a group. Board or the National Seamen Board, as the case may be,
(c) (declared unconstitutional) both of which are authorized to use the same exclusively to
promote their objectives.
Two types of illegal recruitment: Republic Act No. 8042
(a) The offender is not a holder of a license or authority and
engages in recruitment activities; or SECTION 7.Penalties. —
(b) The offender is licensed and is engaged in recruitment
activities and has committed any prohibited practices under (a)Any person found guilty of illegal recruitment
Article 34 of the Labor Code or those enumerated in Section 6 shall suffer the penalty of imprisonment of not less
of the Migrant Workers Act. than six (6) years and one (1) day but not more than
twelve (12) years and a fine of not less than Two

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

hundred thousand pesos (P200,000.00) nor more than activity in a state of which he or she is not a legal resident;
Five hundred thousand pesos (P500,000.00). to be used interchangeably with overseas Filipino worker.
(b)The penalty of life imprisonment and a fine of SEC. 6 ILLEGAL RECRUITMENT (under Migrant
not less than Five hundred thousand pesos Workers Act) – any act of canvassing, enlisting,
(P500,000.00) nor more than One million pesos contracting, transporting, utilizing, hiring, procuring
(P1,000,000.00) shall be imposed if illegal recruitment workers and includes referring, contact services, promising
constitutes economic sabotage as defined herein. or advertising for employment abroad, whether for profit or
not, when undertaken by a non-license or non-holder of
Provided, however, That the maximum penalty authority contemplated under Article 13(f) of Presidential
shall be imposed if the person illegally recruited is less Decree No. 442, as amended, otherwise known as the
than eighteen (18) years of age or committed by a non- Labor Code of the Philippines. Provided, that such non-
licensee or non-holder of authority. license or non-holder, who, in any manner, offers or
promises for a fee employment abroad to two or more
Notes:
persons shall be deemed so engaged.
Penalties involving local employment: Article 39
Penalties involving overseas employment: R.A. 8042 SEC. 10. MONEY CLAIMS - claims arising out of an
employer-employee relationship or by virtue of any law or
Article 39 R.A. 8042 contract involving Filipino workers for overseas
(Sec. 6) deployment including claims for actual, moral, exemplary
Imprisonment: Imprisonment: and other forms of damages.
- Life - Life
Economic SEC. 23. ROLE OF GOVERNMENT AGENCIES - The
Fine: Fine:
Sabotage following government agencies shall perform the following to
- P100,000 P500,000 to
P1,000,000 promote the welfare and protect the rights of migrant workers
Licensed: and, as far as applicable, all overseas Filipinos:
Imprisonment: (a) Department of Foreign Affairs. - The Department, through
- 2-5 years its home office or foreign posts, shall take priority action its
Fine: home office or foreign posts, shall take priority action or make
Imprisonment:
- P10,000 to representation with the foreign authority concerned to protect
- 6-12 years
Illegal P50,000 the rights of migrant workers and other overseas Filipinos and
Fine:
Recruitment Unlicensed: extend immediate assistance including the repatriation of
P200,000 to
Imprisonment: distressed or beleaguered migrant workers and other overseas
P500,000
- 4-8 years Filipinos;
Fine:
- P20,000 to (b) Department of Labor and Employment - The Department
P100,000 of Labor and Employment shall see to it that labor and social
Local Corp: welfare laws in the foreign countries are fairly applied to
Imposed upon the migrant workers and whenever applicable, to other overseas
officer responsible Filipinos including the grant of legal assistance and the referral
Committed for the violation to proper medical centers or hospitals:
by a juridical Alien/Foreign: (b.1) Philippine Overseas Employment Administration -
person Imposed upon the Subject to deregulation and phase out as provided under
officer responsible Sections 29 and 30 herein, the Administration shall regulate
for the violation with private sector participation in the recruitment and overseas
deportation placement of workers by setting up a licensing and registration
- Revocation of - If the person system. It shall also formulate and implement, in coordination
license or illegally with appropriate entities concerned, when necessary
authority recruited is employment of Filipino workers taking into consideration their
- Forfeiture of cash less than 18 welfare and the domestic manpower requirements.
and surety bonds years of age,
maximum (b.2) Overseas Workers Welfare Administration - The
Effects penalty Welfare Officer or in his absence, the coordinating officer shall
- Committed by provide the Filipino migrant worker and his family all the
a non-license assistance they may need in the enforcement of contractual
or non-holder obligations by agencies or entities and/or by their principals. In
of authority, the performance of this functions, he shall make representation
maximum and may call on the agencies or entities concerned to
penalty conferences or conciliation meetings for the purpose of settling
the complaints or problems brought to his attention.
IMPORTANT PROVISIONS OF THE MIGRANT
SEC. 28. COUNTRY-TEAM APPROACH - Under the
WORKERS ACT:
country-team approach, all officers, representatives and
SEC. 3(a). MIGRANT WORKER – a person who is to be personnel of the Philippine government posted abroad regardless
engaged, is engaged or has been engaged in a remunerated of their mother agencies shall, on a per country basis, act as one

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

country-team with a mission under the leadership of the After the lapse of seven calendar days and before ten days, the
ambassador. In this regard, the ambassador may recommend to action is considered to be for an appeal.
the Secretary of the Department of Foreign Affairs the recall of
officers, representatives and personnel of the Philippine File an appeal with the Secretary of Labor within ten (10)
government posted abroad for acts inimical to the national calendar days from receipt of such Order.
interest such as, but not limited to, failure to provide the The decision of the Secretary of Labor is final and unappealable
necessary services to protect the rights of overseas Filipinos. unless there is an abuse of discretion amounting to lack or
Upon receipt of the recommendation of the ambassador, the excess of jurisdiction.
Secretary of the Department of Foreign Affairs shall, in the case
ART. 41. Prohibition Against Transfer of Employment. —
of officers, representatives and personnel of other departments,
(a) After the issuance of an employment permit, the alien
endorse such recommendation to the department secretary
shall not transfer to another job or change his employer
concerned for appropriate action. Pending investigation by an
without prior approval of the Secretary of Labor.
appropriate body in the Philippines, the person recommended
(b) Any non-resident alien who shall take up
for recall may be placed under preventive suspension by the
employment in violation of the provision of this Title and its
ambassador.
implementing rules and regulations shall be punished in
In host countries where there are Philippine consulates, such accordance with the provisions of Articles 289 and 290 of the
consulates shall also constitute part of the country-team under Labor Code.
the leadership of the ambassador. In addition, the alien worker shall be subject to
deportation after the service of his sentence.
TITLE II
Employment of Non-Resident Aliens ART. 289. Closur of Establishment and
Reduction of Personnel. – The employer may also
ART. 40. Employment permit for non-resident aliens. — terminate the employment of any employee due to the
Any alien seeking admission to the Philippines for installation of labor-saving devices, redundancy,
employment purposes and any domestic or foreign employer retrenchment to prevent losses or the closing or
who desires to engage an alien for employment in the cessation of operation of the establishment or
Philippines shall obtain an employment permit from the undertaking unless the closing is for the purpose of
Department of Labor. circumventing the provisions of this Title, by serving a
The employment permit may be issued to a non-resident written notice on the workers and the Miniter of Labor
alien or to the applicant employer after a determination of and Employment at least one (1) month before the
the non-availability of a person in the Philippines who is intended date thereof. In case of termination due to the
competent, able and willing at the time of application to installation of labor-saving devices or redundancy, the
perform the services for which the alien is desired. worker affected thereby shall be entitled to a
For an enterprise registered in preferred areas of separation pay equivalent to at least one (1) month pay
investments, said employment permit may be issued upon or to at least one (1) month pay for every year of
recommendation of the government agency charged with the service, which is higher. In case of retrenchment to
supervision of said registered enterprise. prevent losses in cases of closures or cessation of
Q: Who are required to obtain employment permit? operations of establishment or undertaking not due to
A: Non- resident aliens seeking admission in the Philippines for serious business losses or financial reverses, the
employment and any domestic of foreign employer who desires separation pay shall be equivalent to one (1) month
to engage and alien for employment. pay or atleast one-half (1/2) month pay for every year
of service, whichever is higher. A fraction of at least
Q: What is the minimum age of employment: six (6) months shall be considered one (1) whole year.
A: For apprenticeship or learners, 15 years old. For overseas
employment, not less than 18 years of age. ART. 290. Disease as Grounds for Termination.
– An employer may terminate the services of an
Q: What are the grounds for the cancellation of Alien employee who has been foun to be suffering from any
Employment Permit? disease and whose continued employment is
prohibited by law or is prejudicial to his health as well
A: (a) Non-compliance with the conditions of the permit; as to the health of his co-employees: Provided, That
(b) Misrepresentation of facts in the application; he has paid separation pay equivalent to at least one
(c) Submission of falsified or tampered documents; (1) month salary or to one-half (1/2) month salary for
(d) Meritorious objection or information against the employment every year of service, whichever is greater, a fraction
of the foreign national; of at least six (6) months being considered as one (1)
(e) Foreign national has a derogatory record; and whole year.
(f) Employer terminated his employment.
ART. 42. Submission of List. — Any employer employing
Remedies in Case of Suspension, Cancellation or Revocation non-resident foreign nationals on the effective date of this
of Alien Employment Permit Code shall submit a list of such nationals to the Secretary of
File a Motion for Reconsideration within seven (7) calendar Labor within thirty (30) days after such date indicating their
days from the receipt of Suspension, Cancellation or Revocation names, citizenship, foreign and local addresses, nature of
order with the Regional Director. employment and status of stay in the country. The Secretary
of Labor shall then determine if they are entitled to an
employment permit.

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BOOK TWO REQUISITES:


Human Resources Development (a) At least 14 years of age;
(b) Possess vocational aptitude and capacity for appropriate test;
TITLE I (c) Posses the ability to comprehend and follow oral and written
National Manpower Development Program instructions; and
CHAPTER I (d) Physically fit
National Policies and Administrative Machinery for their ART. 60. Employment of Apprentices. — Only employers
Implementation in the highly technical industries may employ apprentices
NOTE: Articles 43 to 56 (Superseded by R.A. No. 7796 or and only in apprenticeable occupations approved by the
Technical Educational and Skills Development (TESDA) Act of Secretary of Labor and Employment.
1994) REQUISITES FOR APPRENTICE EMPLOYMENT:
DUAL TRAINING SYSTEM – is an instructional delivery 1) The employer should be engaged in a business that is
system of technical and vocational education and training that considered a highly technical industry;
combines in-plant training and in-school training. 2) The job to which the apprentice will work on should be
classified as and apprenticeable occupation.
TITLE II
Training and Employment of Special Workers ART. 61. Contents of Apprenticeship Agreements. —
Apprenticeship agreements including wage rates of
CHAPTER I apprentices, shall conform to the rules issued by the
Apprenticeship Secretary of Labor and Employment. The period of
apprenticeship shall not exceed 6 months. Apprenticeship
ART. 57. Statement of Objective. — This Title aims: agreements providing for wage rates below the legal
(1) To help meet the demand of the economy for minimum wage, which in no case shall start below 75
trained manpower. percent of the applicable minimum wage, may be entered
(2) To establish a national apprenticeship program into only in accordance with apprenticeship programs duly
through the participation of employers, workers, and approved by the Secretary of Labor and Employment. The
government and non-government agencies. Department shall develop standard model programs of
(3) To establish apprenticeship standards for the apprenticeship.
protection of apprentices.
Q: What is the minimum compensation for apprentices?
 ART. 58. Definition of Terms. — As used in this Title: A: Not less than 75% of the statutory minimum wage. However,
(a) "Apprenticeship" means practical training on the the employer may pay for a higher wage.
job supplemented by related theoretical instruction.
GROUNDS FOR TERMINATION OF APPRENTICE
(b) An "apprentice" is a worker who is covered by a
PROGRAM BY THE EMPLOYER: (P2HWET)
written apprenticeship agreement with an individual
1) Poor efficiency;
employer or any of the entities recognized under this
2) Poor physical condition;
Chapter.
3) Habitual absenteeism;
(c) An "apprenticeable occupation" means any trade,
4) Willful disobedience;
form of employment or occupation which requires more
5) Engaging in violence; and
than three (3) months of practical training on the job
6) Theft
supplemented by related theoretical instruction.
(d) "Apprenticeship agreement" is an employment GROUNDS FOR TERMINATION OF APPRENTICE
contract wherein the employer binds himself to train the PROGRAM BY THE APPRENTICE:
apprentice and the apprentice in turn accepts the terms of (Bull Shit ang Revised Penal Code)
training. 1) Bad health or continuing illness;
2) Substandard working conditions;
REQUISITES:
3) Repeated violations of the apprenticeship agreement by the
1) A highly technical industry; and
employer;
2) Approved apprenticeable occupation.
4) Personal problems which will prevent performance;
PERIOD: 5) Cruel and inhuman treatment.
Not less than 3 months but not more than 6 months
ART. 62. Signing of Apprenticeship Agreement. — Every
ART. 59. Qualifications of Apprentice. — To qualify as an apprenticeship agreement shall be signed by the employer or
apprentice, a person shall: his agent, or by an authorized representative of any of the
(a) Be at least fourteen (14) years of age; recognized organizations, associations or groups, and by the
(b) Possess vocational aptitude and capacity for apprentice.
appropriate tests; and An apprenticeship agreement with a minor shall be
(c) Possess the ability to comprehend and follow oral signed in his behalf by his parent or guardian or, if the latter
and written instructions. is not available, by an authorized representative of the
Trade and industry associations may recommend to the Department of Labor, and the same shall be binding during
Secretary of Labor appropriate educational requirements its lifetime.
for different occupations. Every apprenticeship agreement entered into under this
Title shall be ratified by the appropriate apprenticeship

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

committees if any, and a copy thereof shall be furnished both required under this Chapter, employers or entities with duly
the employer and the apprentice. approved apprenticeship programs shall have primary
responsibility for providing appropriate aptitude tests in the
ART. 63. Venue of Apprenticeship Programs. — Any selection of apprentices. If they do not have adequate
firm, employer group of association, industry organization facilities for the purpose, the Department of Labor and
or civic group wishing to organize an apprenticeship Employment shall perform the service free of charge.
program may choose from any of the following
apprenticeship schemes as the training venue for ART. 69. Responsibility for Theoretical Instruction. —
apprentices: Supplementary theoretical instruction to apprentices in
(a) Apprenticeship conducted entirely by and within cases where the program is undertaken in the plant may be
the sponsoring firm, establishment or entity; done by the employer. If the latter is not prepared to assume
(b) Apprenticeship entirely within a Department of the responsibility, the same may be delegated to an
Labor training center or other public training institution; or appropriate government agency.
(c) Initial training in trade fundamentals in a training
center or other institution with subsequent actual work RATIO: 100 hours of theoretical instructions for every 2,000
participation within the sponsoring firm or entity during the hours of practical or on-the-job training.
final stage of training. ART. 70. Voluntary Organization of Apprenticeship
ART. 64. Sponsoring of Apprenticeship Program. — Any Programs; Exceptions. — (a) The organization of
of the apprenticeship schemes recognized herein may be apprenticeship programs shall be primarily a voluntary
undertaken or sponsored by a single employer or firm or by undertaking of employers;
a group or association thereof, or by a civic organization. (b) When national security or particular requirements
Actual training of apprentices may be undertaken: of economic development so demand, the President of the
(a) In the premises of the sponsoring employer in the Philippines may require compulsory training of apprentices
case of individual apprenticeship programs; in certain trades, occupations, jobs or employment levels
(b) In the premises of one or several designated firms where shortage of trained manpower is deemed critical as
in the case of programs sponsored by a group or association determined by the Secretary of Labor and Employment.
of employers or by a civic organization; or Appropriate rules in this connection shall be promulgated
(c) In a Department of Labor training center or other by the Secretary of Labor and Employment as the need
public training institution. arises; and
(c) Where services of foreign technicians are utilized
ART. 65. Investigation of Violation of Apprenticeship by private companies in apprenticeable trades, said
Agreement. — Upon complaint of any interested person or companies are required to set up appropriate apprenticeship
upon its own initiative, the appropriate agency of the programs.
Department of Labor or its authorized representative shall
investigate any violation of an apprenticeship agreement ART. 71. Deductibility of Training Costs. — An
pursuant to such rules and regulations as may be prescribed additional deduction from taxable income of one-half (1/2) of
by the Secretary of Labor and Employment. the value of labor training expenses incurred for developing
the productivity and efficiency of apprentices shall be
ART. 66. Appeal to the Secretary of Labor. — The granted to the person or enterprise organizing an
decision of the authorized agency of the Department of apprenticeship program: Provided, That such program is
Labor and Employment may be appealed by any aggrieved duly recognized by the Department of Labor and
person to the Secretary of Labor within five (5) days from Employment; Provided Further, That such deduction shall
receipt of the decision. The decision of the Secretary of not exceed 10% of direct labor wage; and Provided Finally,
Labor shall be final and executory. That the person or enterprise who wishes to avail himself or
itself of this incentive should pay his apprentices the
Note: Appeal for illegal recruitment (7 calendar days); Appeal minimum wage.
for violation of apprenticeship agreement (5 calendar days).
ART. 72. Apprentices Without Compensation. — The
Though the Code states that the decision of the Secretary shall Secretary of Labor and Employment may authorize the
be final and executor, aggrieved party may elevate the matter in hiring of apprentices without compensation whose training
court by way of Petition for Certiorari to the Supreme Court for on the job is required by the school or training program
issues involving grave abuse of discretion amounting to lack or curriculum or as a requisite for graduation or board
abuse of jurisdiction. According to Rule 43 Section 2 of the examination.
Rules of Court which states: “This Rule shall not apply to
judgments or final orders issued under the Labor Code of the Q: Is an employer required to compensate an apprentice?
Philippines.” A: Generally yes, with atleast 75% of the statutory minimum
wage. However, if the apprentice ship is required by the school
ART. 67. Exhaustion of Administrative Remedies. — No or training program, or a requisite for graduation or board
person shall institute action for the enforcement of any examination, an employer may NOT pay the apprentice any
apprenticeship agreement, or damages for breach of any compensation if he elects to do so.
such agreement, unless he has exhausted all available
administrative remedies.
ART. 68. Aptitude Testing of Applicants. — Consonant
with the minimum qualifications of apprentice-applicants

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CHAPTER II ART. 76. Learners in Piece Work. — Learners employed


Learners in piece or incentive rate jobs during the training period
shall be paid in full for the work done.
ART. 73. Learners Defined. — Learners are persons
hired as trainees in semi-skilled and other industrial ART. 76. Penalty Clause. — Any violation of this
occupations which are non-apprenticeable and which may Chapter or its implementing rules and regulations shall be
be learned through practical training on the job in a subject to the general penalty clause provided for in this
relatively short period of time which shall not exceed three Code. DSITEH
(3) months.
CHAPTER III
Apprentices Learners
Hired for apprenticeable Hired for non-apprenticeable Handicapped Workers
occupation occupations ART. 78. Definition. — Handicapped workers are those
Theoretical instruction Theoretical instruction is not whose earning capacity is impaired by age or physical or
required necessary mental deficiency or injury.
Should not exceed 6 mos. Should not exceed 3 mos.
At least 14 years of age Persons below 15 years of age DEFINITION: The term handicap means handicap in terms of
cannot be hired as learners; earning capacity, not physical handicap. (API)
If between 15 and 18 years of
1) Impaired by age;
age, can only be employed in
2) Impaired by physical or mental deficiency; and
non-hazardous occupations.
3) Injury
At least 75% of the statutory At least 75% of the statutory
minimum wage, unless it is a minimum wage. ART. 79. (Superseded by R.A. No. 7277 or Magna Carta
school requirement or for the of Disabled Persons)
board exams, the employer is
not required to pay. Section 32 of the Magna Carta prohibits discrimination against
disabled persons in regard to hiring, promotion and other terms
ART. 74. When Learners May be Hired. — Learners may and conditions of employment.
be employed when no experienced workers are available, the
ART. 80. Employment Agreement. — Any employer who
employment of learners is necessary to prevent curtailment
employs handicapped workers shall enter into an
of employment opportunities, and the employment does not
employment agreement with them which agreement shall
create unfair competition in terms of labor costs or impair
include:
or lower working standards.
(a) The names and addresses of the handicapped
Conditions for Employment of Learners: (PUSÉ) workers to be employed;
1) The job is semi-skilled or non apprenticeable; (b) The rate to be paid the handicapped workers which
2) No available experienced workers; shall be not less than seventy-five per cent (75%) of the
3) Necessary to prevent curtailment of employment applicable legal minimum wage;
opportunities; and (c) The duration of employment period.
4) It will not create unfair competition.
(d) The work to be performed by handicapped workers.
Age Requirement: The employment agreement shall be subject to
Below 15: absolutely prohibited to be hired as learner inspection by the Secretary of Labor or his duly authorized
Below 18: only in non-hazardous occupations representatives.
ART. 75. Learnership Agreement. — Any employer ART. 81. Eligibility for Apprenticeship. — Subject to the
desiring to employ learners shall enter into a learnership appropriate provisions of this Code, handicapped workers
agreement with them, which agreement shall include: may be hired as apprentices or learners if their handicap is
(a) The names and addresses of the learners; not such as to effectively impede the performance of job
(b) The duration of the learnership period, which shall operations in the particular occupations for which they are
not exceed three (3) months; hired.
(c) The wages or salary rates of the learners which
shall begin at not less than seventy-five per cent (75%) of the DISCUSSION:
applicable minimum wage; and The law does not prohibit the hiring of handicapped workers so
(d) A commitment to employ the learners, if they so long as their handicap does not effectively impede the
desire, as regular employees upon completion of the performance of job operations.
learnership. All learners, who have been allowed or suffered
If the disabled person is engaged as an apprentice or learner, he
to work during the first two (2) months shall be deemed
is entitled to the applicable compensation for apprentices and
regular employees if training is terminated by the employer
learners of atleast 75% of the statutory minimum wage.
before the end of the stipulated period through no fault of
the learner. If the disabled person was not hired as an apprentice, then he is
The learnership agreement shall be subject to entitled to the terms and conditions of employment to able-
inspection by the Secretary of Labor and Employment or his bodied employees. (Bernardo vs. NLRC) Hence, they have the
duly authorized representative. right to be compensated the full amount of remuneration similar
to those able-bodied employees.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Q: What are the minimum standards in the payment of (b) He customarily and regularly directs the work of two or
apprenctices, learners and handicapped or disabled persons, more employees therein; and
respectively? (c) He has the authority to hire or fire other employees of
A: (1) For apprentices, 75% of the statutory minimum wage; (2) lower rank; or his suggestions and recommendations as to
For learners, 75% of the statutory minimum wage unless the hiring, firing, promotion and other personnel movements
hiring of learners is a requirement for graduation or board are given weight.
examinations in which case, no remuneration is required; and (3)
For disabled or handicapped workers, applicable minimum B. Officers or Members of Managerial Staff (Duties and
wage. Responsibilities):
(a) Their primary duty consist in the performance of work
BOOK THREE directly related to management policies of their employer;
Conditions of Employment (b) They customarily and regularly exercise discretion and
independent judgment;
TITLE I (c) They regularly and directly assist a proprietor or a
Working Conditions and Rest Periods managerial employee whose primary duty consist of the
CHAPTER I management of the establishment in which he is employed
Hours of Works or a subdivision thereof; or they execute under general
supervision, work, along specialized or technical lines
ART. 82. Coverage. — The provisions of this Chapter requiring special training, experience or knowledge; or they
shall apply to employees in all establishments and execute under general supervision special assignments and
undertakings, whether for profit or not, but not to tasks; and
government employees, managerial employees, field (d) They do not devote more than 20% of their hours worked
personnel, members of the family of the employer who are in a workweek to activities which are not directly and
dependent upon him for support, domestic helpers, persons closely related to the performance of the work described
in the personal service of another, and workers who are paid above.
by results as determined by the Secretary of Labor in
appropriate regulations. C. Field Personnel:
 As used herein, "managerial employees" refer to those (a) They regularly perform their duties away from the principal
whose primary duty consists of the management of the place of business (or branch office) of the employer; and
establishment in which they are employed or of a (b) Their actual hours of work cannot be determined with
department or subdivision thereof, and to other officers or reasonable certainty.
members of the managerial staff. Exception: Where the employee is constantly supervised.
"Field personnel" shall refer to non-agricultural Hence, he shall be entitled to the benefits mentioned above.
employees who regularly perform their duties away from the
principal place of business or branch office of the employer D. Family Members:
and whose actual hours of work in the field cannot be - Husband and wife;
determined with reasonable certainty. - Parents and children;
- Other ascendants and descendants; and
The following are not entitled to: - Brothers and sisters, whether full or half-blood.
- Overtime pay;
- Premium pay for holidays and rest days; Cousins, parents-in-law or children-in-law are not included.
- Night shift differential; Important: Must be dependent on the employer for support.
- Holiday pay;
- Service incentive leaves; and Reason: The employer already takes care of the sustenance,
- Service charges. dwelling, clothing, medical attendance or education of that
particular member of the family.
Those employees are not entitled:
(1) Government employees;* E. Domestic Helpers:
(2) Managerial employees; Refers to any person, whether male or female, who renders
(3) Officers and members of the managerial staff; service in and about the employer’s home on an activity which
(4) Field personnel; are usually necessary or desirable for the maintenance and
(5) Members of the family of the employer who are dependent enjoyment of the employer and ministers exclusively to the
upon him for support; personal comfort and enjoyment of the family. Drivers not
(6) Domestic helpers insofar as rest day and service incentive included. Domestic helpers are entitled to rest day and service
leave is concerned; incentive leave.
(7) Persons in the personal service of another; and F. Persons in the Personal Service of Another:
(8) Workers paid by results. Those who minister to the personal comfort, convenience or
*includes employees of GOCC’s with special charters not safety of the employer as well as the members of the employer’s
those GOCC’s registered under the Corporation Law. household. Examples are personal bodyguards, private nurses
and drivers.
A. Managerial Employee (Conditions):
(a) His primary duty consists in the management of the G. Workers Paid by Results:
establishment in which they are employed or in the Those who are paid on piece-work, takay, pakiao, or task basis.
management of a department or subdivision thereof;

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Important: Their output should be fixed in accordance with the 2) No diminution in the weekly or monthly take-home pay and
standards and procedures of the Rules Implementing the Labor fringe benefits;
Code. 3) The benefits that will accrue is more than, or commensurate
with or equal to, the one-hour overtime pay that is due them
ART 83. Normal Hours of Work. — The normal hours of during weekdays;
work of any employee shall not exceed eight (8) hours a day. 4) The 1-hour overtime pay of the of the employees will
Health personnel in cities and municipalities with a become due and demandable if they are permitted to work
population of at least one million (1,000,000) or in hospitals on a Saturday;
and clinics with a bed capacity of at least one hundred (100) 5) The work does not involve strenuous physical exertion; and
shall hold regular office hours for eight (8) hours a day, for 6) Only for a temporary duration.
five (5) days a week, exclusive of time for meals, except
where exigencies of the service require that such personnel Q: What is the “Right to Vary?”
work for six (6) days or forty-eight (48) hours, in which case, A: It is the right given to a solo parent employee to vary his or
they shall be entitled to an additional compensation of at her arrival or departure time without affecting (1) the core work
least thirty percent (30%) of their regular wage for work on hours as defined by the employer and (2) individual and
the sixth day. For purposes of this Article, “health company productivity.
personnel" shall include resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers, Q: Who is a solo parent?
laboratory technicians, paramedical technicians, A: A solo parent is any individual who, under R.A. 8972 or Solo
psychologists, midwives, attendants and all other hospital or Parents Welfare Act, falls under any of the following categories:
clinic personnel. 1) A woman who gives birth as a result of rape and other
crimes against chastity even without a final conviction of the
Q: What is the maximum number of hours of work under offender: Provided, That the mother keeps and raises the
normal conditions? child;
A: Eight (8) hours in a day for five (5) consecutive days 2) Parent left solo or alone with the responsibility of
exclusive of time for meals. parenthood due to
a. death of spouse;
Q: What do you mean by the term “day?” b. detention or service of sentence of spouse for a criminal
A: It refers to the 24-hour period commencing from the time the conviction for at least one (1) year;
employee regularly starts work. c. physical and/or mental incapacity of spouse;
Q: What is the maximum number of hours of work when d. legal separation or de facto separation from spouse for at
there are exigent circumstances? least one (1) year, as long as he/she is entrusted with the
A: An employee may be required to work for six (6) days or custody of the children;
forty-eight (48) hours. Provided, he be compensated with an e. due to declaration of nullity or annulment of marriage as
additional compensation of at least 30% of their regular wage decreed by a court or by a church as long as he/she is
for work on the 6th day. entrusted with the custody of the children;
f. abandonment of spouse for at least one (1) year;
The eight hour work need not be continuous. It may be 3) Unmarried mother/father who has preferred to keep and rear
staggered as long as the 8 hours falls within the 24-hour period. her/his child/children instead of having others care for them
Work in excess of eight hours is overtime service. or give them up to a welfare institution;
4) Any other person who solely provides parental care and
Q: May an employer force and employee to render work? support to a child or children; and
A: Generally no, because it would amount to involuntary 5) Any family member who assumes the responsibility of head
servitude, unless there are exigent or emergency situations. of family as a result of the death, abandonment,
disappearance or prolonged absence of the parents or solo
Q: What are these exigent or emergency situations?
parent.
A: Under Article 89 of the Labor Code, these are: (ULPIaNO)
(1) National emergencies or war;  ART. 84. Hours worked. — Hours worked shall include
(2) To prevent Loss to life or property; (a) all time during which an employee is required to be on
(3) There is Imminent danger to public safety; duty or to be at a prescribed workplace; and (b) all time
(4) There is Urgent work to be performed on machines, during which an employee is suffered or permitted to work.
installations or equipment;
(5) To prevent loss or damage to Perishable goods; and Rest periods of short duration during working hours
(6) To prevent serious Obstruction to the business or operations. shall be counted as hours worked.

Q: What is a compressed work week? Three Principles in Determining Hours Worked:


A: An instance where an employer and employee agree to First. All hours which the employee is required to give his
prolong the normal hours of work from Monday to Friday in employer are hours worked, regardless of whether or not such
exchange for elimination of Saturday work without obligating hours are spent in productive labor or involve physical or mental
the employer to pay overtime compensation. exertion.

Q: You say, the employer and employee agree, is this Second. If the work performed was necessary or it benefitted the
agreement valid? employer, or the employee could not abandon his work at the
A: Yes, the agreement is valid. Provided, the following end of his normal working hours because he had no
conditions concur: replacement, all the time spent for such work shall be considered
1) The work hours from Monday to Friday is 9 hrs;

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

as hours worked, if the work was done with the knowledge of A: Rest periods running from 5 to 20 minutes are considered
his employer or immediate supervisor. hours of work. If it exceeds 20 minutes, then it shall not be
considered hours worked.
Third. The time during which an employee is inactive by reason
of interruptions in his work beyod control shall be considered as Q: Does the employee need to leave the premises in order
hours worked if the imminence of the resumption of work that his time will not be considered as hours worked?
requires the employee’s presence at the place of work or if the A: No. It is enough that he stops working, may rest completely
interval is too brief to be utilized effectively in the employee’s and may leave his workplace, go elsewhere, whether within or
own interest. outside the premises.
FIRST PRINCIPLE: Seamen: It being enough that he “cease to work,” may rest
Q: When an employee is engaged to wait, is the time spent completely and leave or may leave at will the spot where he
waiting included as hours worked? Why? actually stays while working, to go somewhere else, whether
A: Yes, because he is unable to effectively use the time spent for within or outside the premises of the said factory, shop or boat.
waiting for his own purpose such as a driver or fireman.
The criterion for determining whether or not seamen are entitled
Waiting to be engaged? No, because the his time is not yet to compensation is not whether they were on board and cannot
controlled by the employer, he is considered, not yet engaged. leave the ship beyond the regular eight working hours a day but
Hence, the employee can effectively use such time. whether they actually rendered service in excess of eight hours a
day.(for a more detailed discussion, read p. 291)
On call time? Yes, if he is not required to leave word at his
home or he is required to inform his employer where he can be
reached. If he is not required to do such duties, No.
 ART. 85. Meal periods. — Subject to such regulations as
the Secretary of Labor may prescribe, it shall be the duty of
Assembly time? If subject to absolute control by the employer, every employer to give his employees not less than sixty (60)
Yes. minutes time-off for their regular meals.

Travel Time? Yes, if the employee deviated from his normal Duration: 60mins.
route to or from work to render some order from employer.
Q: Can be the meal period shortened?
(Read: Rada vs. NLRC, lumabas sa midterms)
A: Yes, but it should be at least 20 minutes and under certain
Attendance in lectures, meetings or training programs? No, circumstances.
if all the following are present:
Q: What are these circumstances?
(a) Attendance is voluntary;
A: (Impending 16 PUNs) (1) Where the work is non-manual in
(b) Attendance is outside the employee’s regular work hours;
nature or does not involve strenuous physical exertion; (2)
and
Where the establishment operates not less than 16 hours a day;
(c) The employee does not do any productive work during
(3) In case of actual impending emergencies; (4) There is urgent
such attendance.
work to be performed on machineries, equipment or installation;
Semestral Break? If the teachers cannot use the break or (5) It is necessary to prevent serious loss of perishable goods.
effectively for their own interest and continue to work during
Q: Is the meal period compensable?
this short recess, No.
A: If for less than 20 minutes, yes. If it lasts for 1 hour or more,
SECOND PRINCIPLE: it is no longer considered part of hours worked, UNLESS the
Note: What is essential is knowledge (not approval) by the employee is not completely discharged during the 1 hour period.
employer or immediate supervisor about the rendition of work.
Q: How about coffee breaks?
Even if there is a standing order from the employer that before A: As long as it does not exceed 20 minutes, it is considered
rendering work, approval should be secured, any overtime work hours worked.
rendered without such approval is still compensable if the
ART. 86. Night-Shift Differential. – Every employee shall
employer or his managerial staff had knowledge about the
be paid a night shift differential of not less than ten percent
rendition of work.
(10%) of his regular wage for each hour of work performed
THIRD PRINCIPLE: between ten o’clock in the evening and six o’clock in the
Q: During brownouts, is it considered hours of work? morning.
A: If the brownouts are of short duration not exceeding 20
Notes: From 10:00 PM to 6:00 AM; Those earned by way of
minutes, are considered hours of work, whether used
night-shift differential is not part of the premium pay.
productively by the employee or not.
Rate: Additional 10% of his regular wage.
Q: What if it exceeds 20 minutes?
A: Generally, it is not considered hours of work. But if the Note: Lahat to additional.
employees can leave their workplace or when the employee can Night-Shift Differential – 10%
use the time effectively for his own interest, then, it shall be Overtime during regular day – 25%
considered hours of work. Overtine during Regular Holiday – 30%
Restday – 20%
Q: Are rest period considered hours of work? Special Holiday – 20%
Regular Holiday – 100%`

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Computation Procedure: 3) Clearance from health agency; and


Ganito lang yan... madali lang promise! 4) Approved by the Secretary of Labor.
a. Regular Pay (RP) = Regular Pay (anu pa ba?)
b. Premium Pay (PP) = Regular pay times Holiday/Restday ART. 89. Emergency Overtime Work. — Any employee
Percentage may be required by the employer to perform overtime work
c. Regular Pay Rate (R.R.) = RP divided by 8hrs in any of the following cases:
d. Premium Pay Rate (P.R.) = PP divided by 8hrs (a) When the country is at war or when any other
e. Regular Overtime Rate (R.O.R.) = R.R. x OT Percentage national or local emergency has been declared by the
f. Premium Overtime Rate (P.O.R.) = P.P.R. x OT Percentage National Assembly or the Chief Executive;
g. Regular Nightshift Rate (R.N.R.) = R.R. x NS Differential (b) When it is necessary to prevent loss of life or
h. Premium Nightshift Rate (P.N.R.) = P.R. x NS Differential property or in case of imminent danger to public safety due
Panu ngayon pag pumasok sa nightshift yung overtime? to an actual or impending emergency in the locality caused
i. Regular Overtime Nightshift Rate (R.O.N.) = R.O.R. x NSD by serious accidents, fire, flood, typhoon, earthquake,
j. Premium Overtime Nightshift Rate (P.O.N.) = P.O.R. x epidemic, or other disaster or calamity;
NSD (c) When there is urgent work to be performed on
Now you have all the values diba? machines, installation, or equipment, in order to avoid
Multiply each value with the number of hours na pasok siya. serious loss or damage to the employer of some other cause
I-add mo lahat! of similar nature;
Tapos! Dali diba? (d) When the work is necessary to prevent loss or
Employees not entitled to night-shift differential. damage to perishable goods; and
All those mentioned in Article 82, except Members of the family (e) Where the completion or continuation of the work
of the employer is not included. started before the eighth hour is necessary to prevent serious
obstruction or prejudice to the business or operation of the
ART. 87. Overtime work. — Work may be performed employer.
beyond eight (8) hours a day provided that the employee is Any employee required to render overtime work under
paid for the overtime work, an additional compensation this Article shall be paid the additional compensation
equivalent to his regular wage plus at least twenty-five required in this Chapter.
percent (25%) thereof. Work performed beyond eight hours
on a holiday or rest day shall be paid an additional (1) War or Emergency Situations
compensatin equivalent to the rate of the first eight hours on (2) Disaster or Calamity
a holiday or rest day plus at least thirty percent (30%) (3) Urgent Repairs
thereof. (4) Preservation of Perishable Goods
(5) Completion of Work
OVERTIME RATES: (6) Take Advantage of Favorable Weather Conditions
25% for Regular Day
30% for Holiday or Rest Day ART. 90. Computation of Additional Compensation. —
For purposes of computing overtime and other additional
Work rendered during rest days is called rest day work while remuneration as required by this Chapter, the "regular
work rendered during holidays is holiday work. wage" of an employee shall include the cash wage only,
without deduction on account of facilities provided by the
Q: Can overtime pay be waived?
employer.
A: No because it is against public policy. What you can waive is
your right to claim what you earned, what you cannot waive is “Regular Wage” is confined to the cash wage only.
the right to be compensated for overtime work. “What is being
waived or compromised is not the right overtime pay but the Cash benefits are not enjoyed with regularity and continuity do
claim for unpaid (uncollected) overtime compensation.” – Atty. not form part of the regular wages, hence, they cannot be
Ungos included in the computation of overtime pay, night shift
differential, etc.
ART. 88. Undertime Not Offset by Overtime. —
Undertime work on any particular day shall not be offset by For the purposes of determining the overtime and premium pay,
overtime work on any other day. Permission given to the the 13th month pay need not be credited as part of the regular
employee to go on leave in some other day of the week shall wage.
not exempt the employer from paying the additional
compensation required in this Chapter. CHAPTER II
Weekly Rest Periods
Sorry, inaantok na ako kaya nagtatagalog na ako.. Basta di
pwedeng “O, umuwi ka na ng 2pm kahit tapos ng trabaho mo ART. 91. Right to Weekly Rest Day. — (a) It shall be the
5pm basta bukas hanggang 8pm ka.” Pag ganun, kung duty of any employer, whether operating for profit or not, to
pinayagan ka magundertime, swerte mo. Pero pag-nagovertime provide each of his employees a rest period of not less than
ka para bumawi si in-undertime mo, babayaran ka pa rin twenty-four (24) consecutive hours for every six (6)
overtime compensation. consecutive normal work days.
(b) The employer shall determine and schedule the
COMPRESSED WORK WEEK: weekly rest day of his employees subject to collective
1) Majority of the employees consent to it; bargaining agreement and to such rules and regulations as
2) Agreement between the employer and employees is put in the Secretary of Labor and Employment may provide.
writing; However, the employer shall respect the preference of

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

employees as to their weekly rest day when such preference additional compensation of at least thirty percent (30%) of
is based on religious grounds. his regular wage. An employee shall be entitled to such
additional compensation for work performed on Sunday
Q: What is a rest day? only when it is his established rest day.
A: It is the period of inactivity of not less than 24 consecutive (b) When the nature of the work of the employee is
hours given to an employee after rendering service for a week. such that he has no regular workdays and no regular rest
Q: What is a week of labor? days can be scheduled, he shall be paid an additional
A: It is to be understood to embrace the ordinary number of six compensation of at least thirty percent (30%) of his regular
labor days, in the absence of an express agreement to the wage for work performed on Sundays and holidays.
contrary. (c) Work performed on any legal holiday shall be paid
with an additional compensation of at least thirty percent
Q: Does the rest day need to fall on a Sunday? (30%) of the regular wage of the employee. Where such
A: No, it need not be on a Sunday especially if the establishment holiday work falls on the employee's scheduled rest day, he
is open during Sundays and Holidays. shall be entitled to an additional compensation of at least
fifty percent (50%) of his regular wage.
Q: Who has the right to choose which day of the week the (d) Where the collective bargaining agreement or other
rest day will fall? The employer is given the option to assign applicable employment contract stipulates the payment of a
the rest day, but, if due to religious grounds, the worker may be higher premium pay than that prescribed under this Article,
respected of his choice. However if the employee’s absence on the employer shall pay such higher rate.
that day would result in serious prejudice to the operations of the
business, the employer may schedule the preferred rest day for Q: What is a Premium Pay?
at least 2 days in a month. A: It is an additional compensation given to a covered employee
for working on a holiday or rest day.
Q: What is the rest day of health personnel?
A: According to Article 83 of this Code, health personnel are Rates of Premium Pay.
given twenty four consecutive hours of rest after every six (6) 30% on a rest day or special day
consecutive normal work days. However if there are exigencies, 50% on a rest day falling on a special holiday
such that, the city or municipality where he work in has a 200% on a regular holiday
population more than one million or in a hospital where he is 30% in addition to his regular holiday rate, on a regular day
employed has more than 100 beds, then the health personnel is falling on a rest day.
given a rest day of 48 consecutive hours after 5 consecutive days
Tip: When asked, what is the premium pay of the employee, the
of work.
proper answer is “the regular wage plus an additional percent of
ART. 92. When Employer May Require Work on A Rest Day. — his regular wage.”
The employer may require his employees to work on any
Q: Does an employee who work on a Sunday entitled to
day:
premium pay?
(a) In case of actual or impending emergencies caused
A: No, because Sunday is considered a regular day, unless it is
by serious accident, fire, flood, typhoon, earthquake,
the employee’s established rest day.
epidemic or other disaster or calamity to prevent loss of life
and property, or imminent danger to public safety; Employees Not Entitled to Premium Pay.
(b) In case or urgent work to be performed on the - All employees mentioned in Article 82.
machinery, equipment, or installation, to avoid serious loss (1) Government employees and those employed in
which the employer would otherwise suffer; Government-Owned and Controlled Corporations having a
(c) In the event of abnormal pressure or wok due to special charter;
special circumstances, where the employer cannot ordinarily (2) Managerial employees;
be expected to resort to other measures; (3) Officers and members of the managerial staff;
(d) Where the nature of work requires continuous (4) Non-Agricultural field personnel;
operations and the stoppage of work may result in (5) Members of the family of the employer who are dependent
irreparable injury or loss to the employer; and upon him for support;
(e) Under other circumstances analogous or similar to (6) Domestic helpers insofar as rest day and service incentive
the foregoing as determined by the Secretary of Labor and leave is concerned;
Employment. (7) Persons in the personal service of another; and
(8) Workers paid by results.
Compulsory Rest Day Work, When Allowed:
Important: Premium pay is an additional compensation other
(1) Disaster or Calamity
than and added to the regular wage or basic salary. It should not
(2) Urgent Repairs
be considered in the computation of 13th month pay.
(3) Abnormal Pressures of Work
(4) Preservation of Perishable Goods Important: For special holidays, “No work, no pay” policy
(5) Nature of Work applies.
(6) Favorable Weather Conditions
(7) Exigencies of Service
ART. 93. Compensation for Rest Day, Sunday or Holiday
Work. — (a) Where an employee is made or permitted to
work on his scheduled rest day, he shall be paid an

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

CHAPTER III (6) Domestic helpers insofar as rest day and service incentive
leave is concerned;
Holidays, Service Incentive Leaves and Service Charges (7) Persons in the personal service of another; and
ART. 94. Right to Holiday Pay. – (a) Every worker shall (8) Workers paid by results.
be paid his regular daily wage during regular holidays, Piece Rate Persons – No
except in retail and service establishments regularly
employing less than ten (10) workers; Sale s Personnel – No
(b) The employer may require an employee to work on
any holiday but such employee shall be paid a compensation Seasonal Workers – No
equivalent to twice his regular rate; and Teachers and Faculty Members – During Christmas vacation,
(c) As used in this Article, “holiday” includes: New Yes. During semestral breaks, No. Those paid per lecture hour,
Year’s Day, Maundy Thursday, Good Friday, the ninth of No. Panu pag regular holiday? Nada. Alam naman kasi nila na
April, the first of May, the twelfth of June, the fourth of during those days, hindi sila magtatarabaho eh.
July, the thirtieth of November, the twenty-fifth and
thirtieth of December and the day designated by law for Monthly-Paid Employees – Yes!
holding a general election.
How to determine if the holiday pay is included in the wages:
Q: What are the regular Holidays? When the total earned wages for the year divided by 251 days
A: According to the Administrative Code of 1997, as amended would result to his regular monthly wage, then holiday pay is
by R.A. No. 9492, the regular holidays are: not included. When the total earned wages for the year divided
a) Regular Holidays by 261 days would amount to his regular monthly wage, then,
- New Year’s Day January 1 the holiday pay is deemed included.
- Maundy Thursday Movable Date
- Good Friday Movable Date Effect of Absences, how to know if you are entitled to
- Eidul Fitr Movable Date holiday pay:
- Araw ng Kagitingan Monday nearest April 9
RULES:
- Labor Day Monday nearest May 1
 Entitled to holiday pay when they are on leave of absence
- Independence Day Monday nearest June 12
with pay.
- National Heroes Day Last Monday of August
- Bonifacio Day Monday nearest November 30  Not entitled when they are on leave o absence without pay
- Christmas Day December 25 on the day immediately preceding the regular holiday.
- Rizal Day Monday nearest December 30  Entitled, if the days immediately preceding the regular
holiday is a non-working day or rest day, he is deemed to
b) Nationwide Special Holidays be on leave of absence on that day, provided, he worked on
- Ninoy Aquino Day Monday nearest August 21 the day immediately preceding the non-working day or rest
- All Saints Day November 1 day.
- Last day of the Year December 31  For two successive regular Holidays, not entitled if the
employee is absent the day preceding the first regular
c) In the event the holiday falls on a Wednesday, the holiday Holiday. But, if he works on the first holiday, he is entitled
will be observed on the Monday of that week. If the holiday falls to holiday pay on the second holiday.
on a Sunday, the holiday will be observed on the Monday that
follows. Q: How much compensation is the employee entitled when
d) Eidul Adha shall be celebrated as a regional holiday in the two regular holidays fall on the same day?
Autonomous Region in Muslim Mindanao. A: The employee should be paid for both the regular holidays.
So, he will be earning 100% of his regular wage, plus an
Pursuant to Proclamation No. 1198 (1973), For corporations additional 100% for the first holiday and another additional
whose business is situated in muslim provinces, as enumerated, 100% for the second holiday for an aggregate premium pay of
shall observe the Holidays under the Code of Muslim Personal 300%.
Laws, their employees are excused from reporting for work
without reduction in their usual compensation. Muslim Q: Is an employee entitled to Holiday Pay if the business is
employees working outside Muslim provinces shall be excused closed?
from work in observance of the enumerated holidays. A: Yes if the closure is temporary. Obviously no, if the closure
is permanent.
Employees not Entitled to Holiday Pay.
- All employees mentioned in Article 82 except members of the ART. 95. Right to Service Incentive Leave. – (a) Every
family of the employer and including employees of retail and employee who has rendered at least one year of service shall
service establishments. be entitled to a yearly service incentive leave of five days
(1) Government employees and those employed in with pay.
Government-Owned and Controlled Corporations having a
special charter; (b) This provision shall not apply to those who are
(2) Managerial employees; already enjoying the benefit herein provided, those enjoying
(3) Officers and members of the managerial staff; vacation leave with pay of at least five days and those
(4) Non-Agricultural field personnel; employed in establishments regularly employing less than
(5) Employees of the retail and service establishments ten employees or in establishment exempted from granting
regularly employing less than 10 workers; this benefit by the Secretary of Labor and Employment after

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

considering the viability or financial condition of such TITLE II


establishment. Wages
(c) The grant of benefit in excess of that provided herein CHAPTER I
shall not be made a subject of arbitration or any court or Preliminary Matters
administrative action.
ART. 97. Definitions. — As used in this Title:
Note: 5 days of service incentive leave is granted to an (a) "Person" means an individual, partnership,
employee who rendered at least one year of service. If it is not association, corporation, business trust, legal representative,
exhausted by the end of the year, it may be converted to cash. or any organized group or person.
Employees not Entitled to Service Incentive Leave.  (b)"Employer" includes any person acting directly or
- All employees mentioned in Article 82 except those indirectly in the interest of an employer in relation to an
employees paid by results and including employees of employee and shall include the Government and all its
establishments with less than 10 employees and those already branches, subdivisions and instrumentalities, all
enjoying vacation leave. government-owned or controlled corporations and
(1) Government employees and those employed in institutions, as well as non-profit private institutions or
Government-Owned and Controlled Corporations having a organizations.
special charter;
(c) "Employee" includes any individual employed by an
(2) Managerial employees;
employer.
(3) Officers and members of the managerial staff;
(4) Non-Agricultural field personnel; (d) "Agriculture" includes farming in all its branches
(5) Employees of the retail and service establishments and among other things includes the cultivation and tillage
regularly employing less than 10 workers; of soil, dairying the production, cultivation, growing and
(6) Domestic helpers insofar as rest day and service incentive harvesting of any agricultural and horticultural
leave is concerned; commodities, the raising of livestock or poultry, and any
(7) Persons in the personal service of another; and practices performed by a farmer or on a farm as an incident
(8) Those who are already enjoying vacation leave with pay of to or in conjunction with such farming operations, but does
at least 5 days; and not include the manufacturing or processing of sugar,
(9) Those employed in establishments regularly employing less coconuts, abaca, tobacco, pineapples or other farm products.
than ten employees. (e) "Employ" includes to suffer or permit to work.
ART. 96. Service Charges. – All service charges collected (f) "Wage" paid to any employee shall mean the
by hotels, restaurants and similar establishments shall be remuneration or earnings, however designated, capable of
distributed at the rate of eighty-five percent (85%) for all being expressed in terms of money, whether fixed or
covered employees and fifteen percent (15%) for ascertained on a time, task, piece, or commission basis, or
management. The share of the employees shall be equally other method of calculating the same, which is payable by an
distributed among them. In case the service charge is employer to an employee under a written or unwritten
abolished, the shore of the covered employees shall be contract of employment for work done or to be done, or for
considered integrated in their wages. services rendered or to be rendered, and includes the fair
and reasonable value, as determined by the Secretary of
Employees not Entitled to Service Charges Labor, of board, lodging, or other facilities customarily
- All employees except managerial employees. furnished by the employer to the employee. "Fair and
reasonable value" shall not include any profit to the
Distribution of Charges
employer or to any person affiliated with the employer.
- 85% for the employees divided equally among them and 15%
for the management for its disposition to answer for losses Q: What are wages?
and breakages and for distribution to managerial employees. A: Wages are remunerations or earnings payable by an
employer to an employee for work done or to be done or for
Q: Can employees be required to post a bond before
services rendered or to be rendered. It should arise from an
employment?
employer-employee relationship.
A: No, if service charge is being collected by the establishment.
Q: What if the service charge was abolished?
A: The share of the covered employees shall be consi-dered Q: What is the distinction between salaries and wages?
integrated in their wages. The basis of the amount is the average A: The Labor Code does not distinguish one from the other.
monthly share for the past 12 months immediately preceding the Wages is too broad a term that salaries are considered included
abolishment. in it. The fine line would be, wages refers to compensation to
manual labor, skilled or unskilled, while salaries denote a higher
grade of employment, or a superior grade of service and implies
a position of office. Wages indicate pay for a low character
employment, whereas salaries are of higher and more important
service.
Important: If it is not wages, it will not fall under the Labor
Code, instead the Civil Code.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

If there is no employer-employee relationship, it not considered Thirteenth Month Pay


as wages. It is an extra remuneration given to employees in an amount
equivalent to 1/12 of the basic salary earned by an employee
Article 1708 of the Civil Code exempt’s a laborer’s wage from within a calendar year, provided, such employee has rendered
execution or attachment except for debts incurred for food, service for at least one year.
shelter, clothing, and medical attendance.
Computation:
Q: What are facilities? Basic salary divided by 12. Basic salary ha? Hindi premium
A: Facilities are expenses necessary for the laborer’s and his salary.
family’s existence and subsistence. It includes rice ration,
housing, medical treatments, school facilities, cost of water, Who are Entitled to 13th month pay:
electricity, fuel, etc. (1) All rank-and-file employees;
(2) Employees paid on piece-work basis;
Q: Are facilities included in the wages? (3) Employees who are paid a fixed or guaranteed wage plus
A: Yes because it includes the fair and reasonable value of commission;
board, lodging, and other facilities customarily furnished by the (4) Private school teachers who have rendered at least one year
employer to the employee. of service;
(5) Employees working for two or more firms (they are entitled
Q: What do you mean by customarily? to collect from all employers);
A: It means that the furnishing of facilities is founded on long (6) Employees who resigned or whose services were
established and constant practice connoting regularity. terminated before the payment of the 13th month pay;
Q: May the employer deduct these facilities from his wages? (7) Household helpers.
A: Yes, provided, that: - All employees mentioned in Article 82 except those
1) The facilities are customarily furnished; employees paid by results and including employees of
2) The provision of deductible facilities must be voluntarily establishments with less than 10 employees and those already
accepted; enjoying vacation leave.
3) The facilities must be fair and reasonable; and Employees not Entitled to 13th Month Pay:
4) There must be a written authorization from the employee (1) Government employees and those employed in
to deduct. Government-Owned and Controlled Corporations having a
Q: What are supplements? special charter;
A: They are extra remuneration or special privileges or benefits (2) Employers already paring their employees a 13th month pay
given to or received by the labourers over and above their or more in a calendar year or its equivalent;
ordinary earnings or wages. They are not part of wages. They (3) Those who have rendered less than one year of service; and
are given merely to augment the earnings of the employee. (4) Employees paid purely on commission.

Q: Give examples of supplements? Q: What if equivalent pay is less than the 1/12 of the
A: Vacation leave pay, overtime pay, sick, pension, retirement employee’s basic salary?
and death benefits, profit sharing, allowances, Christmas bonus, A: The employer is bound to pay only the difference.
etc.
Time of payment of 13th month pay.
Q: How will you determine if the benefit is a facility or
supplement? Either not later than December 24 in full or one before the
A: If it inures primarily to the benefit of the employer, then it is opening of the regular school year and the other half on or
a facility. before December 24.

Q: Can the employer deduct the benefits? 14th month pay


A: According to Article 100, No. Not mandated by law; Gratuitous in nature; and a managerial
prerogative. Hence, it is not demandable.
BONUS – is an amount granter and paid to an employee for his
industry and loyalty which contributed to the success of the Q: When is the 14th month pay demandable?
employer’s business and made possible the realization of profits. A: When the requisites are met:
It is an act of generosity. (1) If it is a company practice;
(2) If it arises from a contract;
GEN. RULE: Bonus is not demandable nor an enforceable (3) If it was made part of wages;
obligation. (4) It is given regardless whether the employer realized profits
EXCEPTION: When the bonus has become a matter of right. or not.
Q: When does it become a matter of right?
A: If the grant is the result of an agreement or if it is made part
 ART. 98. Application of Title. — This Title shall not
apply to farm tenancy or leasehold, domestic service and
of the wages.
persons working in their respective homes in needlework or
Q: How can a bonus become part of wages? in any cottage industry duly registered in accordance with
A: If it is given in a fixed amount without and condition, law.
whether the employer realized profits or not; or if the granting of
bonus has ripened into a practice.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Coverage of the Law on Wages employee benefits being enjoyed at the time of promulgation
The provisions of the Labor Code on wages apply to all of this Code.
employees except:
(1) Household helpers; Principle of Non-Diminution of Benefits:
(2) Persons in the personal service of another; A benefit regularly and voluntarily granted without conditions
(3) Homeworkers engaged in needlework; becomes part of the terms and conditions of employment, and
(4) Workers employed in the cottage industry; therefore, it cannot be unilaterally withdrawn or reduced.
(5) Workers of a registered cooperative; and Q: Name cases where the principle do not apply to?
(6) Farm tenancy and leasehold. A: The principle is not violated if the action
CHAPTER II (a) does not result in reduction or elimination of benefits;
Minimum Wage Rates (b) if what is deducted is the fair and reasonable value of
facilities;
 ART. 99. Statutory Minimum Wages. — The minimum (c) if an employer reduces the bonuses it used to grant its
employees; and
wage rates for agricultural and non-agricultural employees
(d) if it discontinues a benefit that has been granted by
and workers in each and every region of the country shall be
mistake.
those prescribed by the Regional Tripartite Wages and
Productivity Boards. Q: When does the grant of benefits become a “Company
Practice?”
REMEDY: The aggrieved party can appeal to the National A: To be considered as company practice, it should have been
Wages Commission within ten (10) days. observed over a long period of time and must be shown to have
METHODS IN FIXING THE MINIMUM WAGE: been consistent and deliberate.
(a) The Floor-Wage method; and Q: What is “Payment by Mistake?”
(b) The Salary-Ceiling method. A: When an employer grants benefits to his employees which
FLOOR-WAGE METHOD prescribes a determinate amount had never been due. It may be a mistake of fact or mistake of
that would be added to the prevailing statutory minimum wage. law.
SALARY-CEILING METHOD prescribes a wage adjustment ART. 101. Payments by results. — The Secretary of
that would apply only employees receiving a certain Labor and Employment shall regulate the payment of wages
denominated salary ceiling. by results, including pakyao, piecework and other non-time
Q: Can you waive the minimum wage? work, in order to ensure the payment of fair and reasonable
A: The minimum wage fixed by law is mandatory. It cannot be wage rates, preferably through time and motion studies or in
waived. consultation with representatives of workers' and employers'
organization.
The term “wage” includes the fair and reasonable value, as
determined by the Secretary of Labor and Employment, of CHAPTER III
board, lodging or other facilities furnished by the employer to Payment of Wages
the employee. ART. 102. Forms of Payment. — No employer shall pay
Q: Can you bargain the minimum wage? the wages of an employee by means of promissory notes,
A: It is an area beyond the sphere of collective bargaining vouchers, coupons, tokens, tickets, chits or any object other
between the parties. It is fixed by law. Not even the consent of than legal tender, even when expressly requested by the
the employees themselves suffices to defeat its operations. employee.
Payment of wages by check or money order shall be
Q: If the minimum wage is not followed, what is the allowed when such manner of payment is customary on the
sanction? date of effectivity of this Code, or is necessary because of
A: Failure to pay the prescribed wage increase or cost of living special circumstances as specified in appropriate regulations
allowances will subject the employer to CRIMINAL LIABILITY to be issued by the Secretary of Labor or is stipulated in a
and DOUBLE INDEMNITY. collective bargaining agreement.
Note: This is the relief mentioned earlier in Article 17. Q: In what form should wages be paid?
A: Generally, in legal tender. However, the employer and his
AGRICULTURE means farming in all its branches and any employees may agree that it be made by check or money order.
practice performed by a farmer on a farm as an incident to or in
conjunction with farming operations. It includes: LEGAL TENDER – is that currency which had been made
suitable by law for the purpose of tender of payment of debts.
(a) The cultivation and tillage of soil; All notes and coins issued by the Bangko Central are legal
(b) Dairying; tender. A check is not a legal tender.
(c) The production, cultivation, growing and harvesting of
agricultural and horticultural commodities; and Principle of “No Work, No Pay”
(d) The raising of livestocl or poultry. If there is no work performed by the employee there can be no
wage or pay, unless the employee was illegally locked out,
 ART. 100. Prohibition Against Elimination or Diminution of dismissed, or suspended. It is based on an age-old rule “fair
Benefits. — Nothing in this Title shall be construed to day’s wage for a fair labor.”
eliminate, or in any way diminish supplements, or other

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Remedy: If payment of wages made not in legal tender – file a 2) Employer provides for transportation to and from the place
complaint for unpaid wages even if he accepted tokens, etc. where the salary is to be distributed;
3) Analogous circumstance, provided the time spent by the
Note: The law is clear that wages should be made in legal employees collecting their wages shall be considered as
tender. Even if the method of payment was agreed upon by the compensable hours worked.
parties or the employee himself made the request.
PAYMENT IN RECREATIONAL PLACES, PROHIBITED,
Q: Can payment be made using checks or money order?
except for employees working in such places.
A: Yes. It is allowable only in the following cases:
(a) It is customary on the date of the effectivity of the Labor PAYMENT THROUGH ATM’s REQUISITES:
Code; 1) Written consent of the employee;
(b) So stipulated in a collective bargaining agreement 2) Reasonable time to withdraw their wages from the bank, if
(agreement with the union); or done during working hours, considered hours worked;
(c) When there is a bank or other facilities for encashment: 3) Without prejudice to Art. 103 with regard to frequency of
a. Within a radius of 1km from the workplace; payment;
b. The employer or his agents do not receive eny 4) Within 1km to the place of work;
pecuniary benefit from the arrangement; 5) Upon request of the employee;
c. The employees are given reasonable time during 6) No additional expenses and no diminution of benefits and
banking hours to withdraw their wages on company privileges; and
time; and 7) Employer shall be responsible when the law are not
d. The employee consents to such an arrangement. complied with.

ART. 103. Time of Payment. — Wages shall be paid at  ART. 105. Direct Payment of Wages. - Wages shall be
least once every two (2) weeks or twice a month at intervals paid directly to the workers to whom they are due, except:
not exceeding sixteen (16) days. If on account of force (a) In cases of force majeure rendering such payment
majeure or circumstances beyond the employer's control, impossible or under other special circumstances to be
payment of wages on or within the time herein provided determined by the Secretary of Labor and Employment in
cannot be made, the employer shall pay the wages appropriate regulations, in which case, the worker may be
immediately after such force majeure or circumstances have paid through another person under written authority given
ceased. No employer shall make payment with less frequency by the worker for the purpose; or
than once a month.
The payment of wages of employees engaged to perform  (b) Where the worker has died, in which case, the
a task which cannot be completed in two (2) weeks shall be employer may pay the wages of the deceased worker to the
subject to the following conditions in the absence of a heirs of the latter without the necessity of intestate
collective bargaining agreement or arbitration award: proceedings. The claimants, if they are all of age, shall
(1) That payments are made at intervals not exceeding execute an affidavit attesting to their relationship to the
sixteen (16) days, in proportion to the amount of work deceased and the fact that they are his heirs, to the exclusion
completed; and of all other persons. If any of the heirs is a minor, the
(2) That final settlement is made upon completion of the affidavit shall be executed on his behalf by his natural
work. guardian or next-of-kin. The affidavit shall be presented to
the employer who shall make payment through the
Circumstances that may justify delayed payment: Secretary of Labor and Employment or his representative.
(a) Force Majeure; or The representative of the Secretary of Labor and
(b) Circumstances beyond employer’s control. Employment shall act as referee in dividing the amount paid
among the heirs. The payment of wages under this Article
Force Majeure – refers to events which arise from legitimate or shall absolve the employer of any further liability with
illegitimate acts of persons other than the employer, such as war, respect to the amount paid.
robbery, arson, etc.
GENERAL RULE: Wages shall be paid directly to the workers
Circumstances bend control – refers to fortuitous events to whom they are due.
independent of human intervention, such as flood, typhoons,
earthquakes, and other natural calamities. EXCEPTION: Can be paid to another person when:
1) Employer is authorized in writing that it shall be paid to a
ART. 104. Place of Payment. - Payment of wages shall be member of the family;
made at or near the place of undertaking, except as 2) Payment is authorized by existing law;
otherwise provided by such regulations as the Secretary of 3) Death of an employee; and
Labor and Employment may prescribe under conditions to 4) Force Majeure and employee executes a written authority for
ensure greater protection of wages. the delivery of his wages to another person.
GENERAL RULE: The payment of wages should be made at PAYMENT OF WAGES OF AN EMPLOYEE WHO HAS
the place of business. DIED: Intestate proceedings are not necessary. The heirs should
EXCEPTIONS: simply submit to the employer an affidavit attesting to their
1) Deterioration of peace and order or actual or impending relationship with the deceased and the fact that they are his
emergencies; heirs, to the exclusion of all other persons. If any of the heirs is a
minor, the natural guardian or next of kin shall execute the
affidavit in his behalf. Upon presentation of the affidavit, the

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

employer shall make payment to the heirs as representative of a. to perform the work on his own account;
the Secretary. Payment in accordance with the foregoing b. under his own responsibility;
procedure will relieve the employer from further liability with c. according to his own manner and method;
respect to the amount paid. d. free from control and direction of the principal
in all matters connected with the performance of work
ART. 106. Contractor or Subcontractor. - Whenever an EXCEPT as to the results thereof.
employer enters into a contract with another person for the 2) The SubCon/Con must have substantial capital or
performance of the former’s work, the employees of the investment in the form of tools, equipment, machineries
contractor and of the latter’s subcontractor, if any, shall be and other materials which are necessary in the conduct of
paid in accordance with the provisions of this Code. his business.
 In the event that the contractor or subcontractor fails to Q: What does substantial capital or investment mean?
pay the wages of his employees in accordance with this Code,
A: That the contractor or subcontractor has fully subscribed and
the employer shall be jointly and severally liable with his
paid for its capital stock.
contractor or subcontractor to such employees to the extent
of the work performed under the contract, in the same Q: What if the (sub)contractor is not registered?
manner and extent that he is liable to employees directly A: There is a presumption of “labor-only” contracting?
employed by him.
The Secretary of Labor and Employment may, by Q: What if the presumption is not overcome?
appropriate regulations, restrict or prohibit the contracting- A: The employees of the (sub)contractor will become employees
out of labor to protect the rights of workers established of the principal.
under this Code. In so prohibiting or restricting, he may
make appropriate distinctions between labor-only Legal Effect of Legitimate Contracting or Subcontracting
contracting and job contracting as well as differentiations An employer who enters into a contract with a legitimate
within these types of contracting and determine who among contractor does not thereby create an employer-employee
the parties involved shall be considered the employer for relationship between himself and the employees of the
purposes of this Code, to prevent any violation or contractor. The employees of the contractor remain the
circumvention of any provision of this Code. contractor’s employees and his alone
 There is "labor-only" contracting where the person
When the contractor fails to pay the wages of his employees in
supplying workers to an employer does not have substantial
accordance with the Labor Code, the employer becomes jointly
capital or investment in the form of tools, equipment,
and severally liable with his contractor for wages “to the extent
machineries, work premises, among others, and the workers
of the work performed under the contract.”
recruited and placed by such person are performing
activities which are directly related to the principal business The principal may seek reimbursement from contractors for
of such employer. In such cases, the person or intermediary wages he paid. He should file his claim in the regular courts and
shall be considered merely as an agent of the employer who not with the NLRC.
shall be responsible to the workers in the same manner and
extent as if the latter were directly employed by him. Q: When is Contracting or Subcontracting Illegal?

TRILATERAL RELATIONSHIP: (Art. 107) A: Being contrary to law or public policy, contracting or
subcontracting is illegal in the following cases:
PRINCIPAL Decides
(C dean Ulan Galit, at Illegal daw Rectruitment ng Lex
Power to Talionis)
With E.E.
Control 1) Labor-Only Contracting;
CONTRACTOR Undertakes Relation-
Means 2) Contracting out work with a “Cabo;”
ship
and ends 3) Contracting out work through an In-house agency;
No E.E. 4) Contracting out work that is directly Related to the
Only
WORKER Finishes Relation- business of the principal by reason of strike or lock-out,
Ends
ship whether actual or imminent;
5) Contracting out work when not done in Good faith and not
justified by the exigencies of the same resulting in:
There is contracting or subcontracting when an employer a. The termination of regular employees;
engages the services of a contractor to perform a certain work, b. Reduction of work hours; or
task or job on his own account under his own responsibility free c. Reduction or splitting of the bargaining unit.
from the control and direction of his employer in all matters 6) Contracting out work being performed by Union members
except as to the result of the work. when such will interfere with the exercise of their right to
self organization. (Unfair Labor Practice)
Contracting or subcontracting is no illegal per se. It is perfectly
legal for an employer to engage a contractor to perform Q: What is Labor-Only Contracting?
janitorial, security, collection, maintenance, merchandising, A: an arrangement whereby the contractor:
messengerial, and technical services or specialized works. 1) does not have substantial capital or investment in the form
of tools, equipment, and work premises: and
REQUISITES OF VALID (SUB)CONTRACTING:
2) merely recruits, supplies or places workers only;
1) The SubCon/Con must have a distinct and independent
to the principal employer to perform a job, work or activity that
business and must undertake
is directly related to the main business of the principal employer.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Elements or Labor-Only Contracting (D Wade Scores) ART. 108. Posting of Bond. - An employer or indirect
(a) Contractor supplies Workers only; employer may require the contractor or subcontractor to
(b) The undertaking is Directly related to the main business of furnish a bond equal to the cost of labor under contract, on
the principal; and condition that the bond will answer for the wages due the
(c) The contractor does not have Substantial capital in the form employees should the contractor or subcontractor, as the
of tools, equipment and work premises. case may be, fail to pay the same.
Legal Effect of Labor-Only Contracting ART. 109. Solidary Liability. - The provisions of existing
When there is “Labor-Only” contracting, the law establishes an laws to the contrary notwithstanding, every employer or
employer-employee relationship between the principal employer indirect employer shall be held responsible with his
and the employees of the contractor. The contractor is contractor or subcontractor for any violation of any
considered as a mere agent of the principal employer and, provision of this Code. For purposes of determining the
therefore, both the principal and the contractor are solidarily extent of their civil liability under this Chapter, they shall be
liable for all the rightful claims of the employees. (Art. 109) considered as direct employers.
Contracting Out Work with a “Cabo” – refers to a person or As mentioned earlier, if the principal was to be held solidarily
group of persons or to a labor group which, in the guise of a liable with the contractor, the former shall be liable to any
labor organization, supplies workers to an employer, whether as claims by the employees. What are these claims?
an agent of the principal or as an independent contractor. A: The principal employer shall be liable jointly and severally
with the contractor for the employees back wages, separation
Contracting Out Work Through an In-House Agency – pay and damages.
refers to a contractor or subcontractor engaged in the supply of
labor which is owned, managed or controlled by the principal Q: Can the employee sue the government?
and which operates solely for the principal. A: Yes. As defined in Article 97(b) of the Labor Code, the term
“employer” shall include the Government and all its branches,
Contracting Out Work During a Strike or Lockout – subdivision and instrumentalities, all government-owned or
becomes illegal only if the job, work, or service contracted is controlled corporations and institutions.
directly related to the business of the principal.
Q: Where may an employee file his claims?
Contracting Out Work Being Performed by Union Members A: File it with the NLRC since the word “employer” includes
– becomes illegal only when such, will interfere with, restrain or the Government, the NLRC may exercise jurisdiction over cases
coerce employees in the exercise of their right to self- involving claims of employees.
organization.
ART. 110. Worker Preference in Case of Bankruptcy. - In
Contracting Out Work Resulting in the Termination of the event of bankruptcy or liquidation of an employer’s
Regular Employees. Reduction of work hours, reduction or business, his workers shall enjoy first preference as regards
splitting of the bargaining unit becomes illegal only when not their wages and other monetary claims, any provisions of
done in good faith AND not justified by the exigencies of the law to the contrary notwithstanding. Such unpaid wages and
business. monetary claims shall be paid in full before claims of the
ART. 107. Indirect Employer. - The provisions of the government and other creditors may be paid.
immediately preceding article shall likewise apply to any Note: For Article 110 to become effective, there must be
person, partnership, association or corporation which, not bankruptcy or insolvency proceedings, or judicial liquidation of
being an employer, contracts with an independent the business of the employer, otherwise, this Article will hold no
contractor for the performance of any work, task, job or ground.
project.
Q: What if the business, say a bank, is put into a
Contractors and Sub-Contractors are required to register with the receivership, and is undergoing rehabilitation proceedings,
DOLE. Failure to register shall give rise to the presumption that is Article 110 in force?
the contractor is engaged in labor-only contracting. A: Duh, no.. the law is clear that it must be bankruptcy or
Q: What is the Trilateral Relationship in contracting liquidation proceedings. Kumbaga, ayaw nang i-tuloy ni
arrangements? principal negosyo niya. Mag file ka na lang nang claim tapos
A: Under the trilateral relationship, the principal decides the job maghanap ka na ng bagong trabaho. Kung naka-receivership
or service to be contracted out, while the contractor undertakes siya, eh di suspended lang yung operation kasi medyo nalulugi
to perform a job or service, and the workers accomplish the job na, pero employed ka pa rin.
or service. Q: What if the employer announces, that he will stop
Q: How will you determine if the relationship between the operating the business without entering into any judicial
principal and the contractor is for contracting or sub- proceedings and, the employees found out that the employer
contracting purposes? entered into an agreement with his creditors for the payment
A: When the contractor undertakes the job or service and the of debts, how will the employees assert their claim?
principal has control only as to the results of the job or service A: Opinio Non Juris. Normally, the employees may demand
and not to how it will be performed or the means employed by from the stockholders or employer to execute and affidavit of
the contractor. personal liability, since there is no judicial proceedings, the
employees have no right to initiate the same. However, they may

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

claim for damages based on Article 28 of the Civil Code which ART. 111. Attorney’s fees. - (a) In cases of unlawful
states: withholding of wages, the culpable party may be assessed
Art. 28. Unfair competition in agricultural, attorney’s fees equivalent to ten percent (10%) of the
commercial or industrial enterprises or in labor amount of wages recovered.
through the use of force, intimidation, deceit,
machination or any other unjust, oppressice or (b) It shall be unlawful for any person to demand or
highhanded method shall give rise to a right of action accept, in any judicial or administrative proceedings for the
by the person who thereby suffers damage. recovery of wages, attorney’s fees which exceed ten percent
A: According to Master “Boy Tinder,” the relationship between (10%) of the amount of wages recovered.
the employer and employee becomes a credit-debtor CHAPTER IV
relationship. The employees may file a case for the collection of Prohibitions Regarding Wages
sum of money based on contract under the Civil Code.
Q: What are the monetary claims available to the  ART. 112. Non-interference in Disposal of Wages. - No
employees? (BDSM) employer shall limit or otherwise interfere with the freedom
A: Backwages, Damages, if any and Separation Pay monetary of any employee to dispose of his wages. He shall not in any
claims. manner force, compel, or oblige his employees to purchase
merchandise, commodities or other property from any other
Q: Who are the claimants of the employer or business person, or otherwise make use of any store or services of
owner? such employer or any other person.
A: The Government; the employees regarding their monetary
claims; and the business owner’s creditors. PROHIBITIONS:
- Disposal
Q: What are the kinds of credits under the Civil Code? - Deduction
A: Special preferred credits, Ordinary preferred credits and - Deposit
Common credits. - Limitations
- Withholding / Kickbacks
Monetary Claims of Workers
- Promise Employment / Retention
Not all monetary claims of workers fall under the category of
- Retaliatory
special preferred credits. Only those specified in Article 2241(6)
- False Reporting
and Article 2242(3) of the Civil Code are considered as special
preferred credits, namely:
(a) Claims for laborer’s wages, on the goods manufactured  ART. 113. Wage Deduction. - No employer, in his own
or the work done; and behalf or in behalf of any person, shall make any deduction
(b) Claims of labourers, masons, mechanics and other from the wages of his employees, except:
workmen, as well as architects, engineers and contractors, (a) In cases where the worker is insured with his
engaged in the construction, reconstruction or repair of consent by the employer, and the deduction is to recompense
buildings, canals or other works, upon the same buildings, the employer for the amount paid by him as premium on the
canals or other works. insurance;
(b) For union dues, in cases where the right of the
Q: What is the legal effect in the order of preference of worker or his union to check-off has been recognized by the
credits under the Civil Code when the Labor Code, in employer or authorized in writing by the individual worker
relation to Article 110, was promulgated? concerned; and
A: The use of the phrase “first preference” in Article 110 of the (c) In cases where the employer is authorized by law or
Labor Code merely modifies the order of preference found in regulations issued by the Secretary of Labor and
Article 2244 of the Civil Code. The modification consists in: Employment.
(a) Removing the one year limitation found in Article 2244(2)
of the Civil Code; and What are the lawful deductions?
(b) Moving up claims for unpaid wages and other monetary (I IWAS, FOULE3D pa rin?)
claims of labourers or workers. 1) Insurance premiums advanced by the employer;
2) Union dues, where the right to check-off has been
The taxes listed in Articles 2241 and 2242 of the Civil Code, recognized by the employer;
stand first in preference with respect to the particular property to 3) Agency fees assessed by the collective bargaining agent
which the tax liens have attached, as provided by Article 2243 of against non-union members;
the Civil Code which states: “taxes mentioned in No.1, Article 4) Special assessments or extraordinary fees levied by a
2241, and No.1, Article 2242, shall first be satisfied.” collective bargaining agents against its members.
5) Fair and reasonable value of Facilities;
Special preferred credits are to be paid only after the taxes on 6) Obligations of an employee to third persons;
the specific property involved have been paid. 7) Cost of Lost or damaged tools, materials or equipment;
Article 110 of the Labor Code does not constitute a lien on the 8) Due and demandable Debt of an employee to his employer;
property of the insolvent debtor in favour of workers. It is just a 9) Deductions made in compliance with Writs of execution or
preference of credit in their favor. Preference of credits applies attachment against the employee for debts incurred for
only to claims which do not attach to specific properties, while a food, shelter, clothing and medical attendance;
lien attaches to a particular property. 10) Income Tax;
11) Employee’s shares in the premium contributions to the
SSS;

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

12) Empoyee’s share in the premium contributions to the GEN RULE: The employer may not require his employees to
Philhealth; and make a deposit for any future loss or breakage of any tools,
13) Employee’s contribution to the Pag-Ibig Fund. materials or equipment.
Q: Can an employer deduct the cost of uniforms? EXCEPTIONS: If the employer is engaged in such trade; or
A: No, even if the employee executes a written authorization. requiring deposits is a recognized practice; or necessary or
Pinagpilitan ka nang mag-uniform, pagbabayarin ka pa? desirable as determined by the Secretary.
Q: If an employer reduces the number of workdays due to In establishments where service charge is collected, the
economic reasons, can it also make the corresponding employees are not required to make any deposits because 15%
reduction in the salaries or wages? of the service charge belongs to the management, under his
A: Yes. In situations where the reduction in the number of prerogative, give to his other employees or answer for the loss or
regular working days is resorted to by the employer to prevent damage to his tools or equipment.
serious losses due to cause beyond his control, such reduction is
valid. Q: Can a taxi driver be required to make a deposit?
A: if the deposit or deduction is to wash the unit after the tour of
Q: What is a “Check-off” Fee? duty, yes. But if the deposit or deduction is to answer for the
A:  deficient “boundary” payment, then there is a violation of
Article 114 of the Labor Code.
Q: Can an employer be compelled to check-off union dues?
A: No.  ART. 115. Limitations. - No deduction from the deposits
Q: What if the employer rejects deducting the check-off of an employee for the actual amount of the loss or damage
dues? shall be made unless the employee has been heard thereon,
A: The employer’s failure to make the requisite reduction may and his responsibility has been clearly shown.
constitute a violation of a contractual commitment for which he
Q: May when an employee be required to pay for any loss or
may incur liability for unfair labor practice.
damage?
Q: May non-union members avail of the right to check-off? A: (a) When the employee is given the opportunity to be heard;
A: Yes, non-union members belonging to the appropriate (b) He was found responsible for the loss or breakage; and
bargaining unit who accepts the benefits of the CBA may avail (c) The amount required of him does not exceed the actual
of this right. damage.
(d) The deduction does not exceed 20% of the employee’s
Q: Are they required to make a written check-off wages in a week.
authorization?
A: No, they don’t. The employee’s acceptance of the benefits  ART. 116. Withholding of Wages and Kickbacks
resulting from the CBA justifies the deduction of agency fees Prohibited. - It shall be unlawful for any person, directly or
from his salary. indirectly, to withhold any amount from the wages of a
Q: What are the requisites of a valid check-off or special worker or induce him to give up any part of his wages by
assessment or other extraordinary expenses? force, stealth, intimidation, threat or by any other means
A: The requisites are: whatsoever without the worker’s consent.
1) There must be a written resolution by a majority of all the Q: What are the prohibited acts under Article 116?
members at a general membership meeting duly called for A: These are the withholding of any amount from the wages of
the purpose; the worker; and inducing an employee to give up any part of his
2) The minutes of the meeting duly recorded by the secretary wages by force, stealth, intimidation, threat or any other means
of the union and attested by the union president; and without the employee’s consent.
3) Individual written check-off authorization by the
employees concerned. Q: What will be the liability of the employer for such
violation?
Q: What is the most important requisite? A: The employer may incur criminal liability, pay double the
A: No. 3. That there must be a written check-off authorization claim of the employee, and in proper cases payment of at least
by the employees concerned. 10% of the Attorney’s fee..

 ART. 114. Deposits for Loss or Damage. - No employer  ART. 117. Deduction to Ensure Employment. - It shall be
shall require his worker to make deposits from which unlawful to make any deduction from the wages of any
deductions shall be made for the reimbursement of loss of or employee for the benefit of the employer or his
damage to tools, materials, or equipment supplied by the representative or intermediary as consideration of a promise
employer, except when the employer is engaged in such of employment or retention in employment.
trades, occupations or business where the practice of making
Q: What is the scope of Article 117?
deductions or requiring deposits is a recognized one, or is
A: Article 117 prohibits the deduction from the wages of an
necessary or desirable as determined by the Secretary of
employee as consideration for: (a) promise of employment; or
Labor and Employment in appropriate rules and
(b) retention of employment.
regulations.
 ART. 118. Retaliatory Measures. - It shall be unlawful for
an employer to refuse to pay or reduce the wages and

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

benefits, discharge or in any manner discriminate against to be made on the basis of the list of nominees submitted by
any employee who has filed any complaint or instituted any the workers’ and employers’ sectors, respectively, and who
proceeding under this Title or has testified or is about to shall serve for a term of five (5) years. The Executive
testify in such proceedings. Director of the Commission shall also be a member of the
Commission.
ART. 119. False Reporting. - It shall be unlawful for any The Commission shall be assisted by a Secretariat to be
person to make any statement, report, or record filed or kept headed by an Executive Director and two (2) Deputy
pursuant to the provisions of this Code knowing such Directors, who shall be appointed by the President of the
statement, report or record to be false in any material Philippines, upon the recommendation of the Secretary of
respect. Labor and Employment.
CHAPTER V The Executive Director shall have the same rank,
Wage Studies, Wages Agreements and Wage Determination salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy Directors
ART. 120. Creation of National Wages and Productivity shall have the same rank, salary, benefits and other
Commission. - There is hereby created a National Wages and emoluments as that of a Bureau Director. The members of
Productivity Commission, hereinafter referred to as the the Commission representing labor and management shall
Commission, which shall be attached to the Department of have the same rank, emoluments, allowances and other
Labor and Employment (DOLE) for policy and program benefits as those prescribed by law for labor and
coordination. management representatives in the Employees’
Compensation Commission.
ART. 121. Powers and Functions of the Commission. -
The Commission shall have the following powers and ART. 122. Creation of Regional Tripartite Wages and
functions: Productivity Boards. - There is hereby created Regional
(a) To act as the national consultative and advisory Tripartite Wages and Productivity Boards, hereinafter
body to the President of the Philippines and Congress on referred to as Regional Boards, in all regions, including
matters relating to wages, incomes and productivity; autonomous regions as may be established by law. The
(b) To formulate policies and guidelines on wages, Commission shall determine the offices/headquarters of the
incomes and productivity improvement at the enterprise, respective Regional Boards.
industry and national levels;
(c) To prescribe rules and guidelines for the The Regional Boards shall have the following powers
determination of appropriate minimum wage and and functions in their respective territorial jurisdictions:
productivity measures at the regional, provincial, or (a) To develop plans, programs and projects relative to
industry levels; wages, incomes and productivity improvement for their
(d) To review regional wage levels set by the Regional respective regions;
Tripartite Wages and Productivity Boards to determine if (b) To determine and fix minimum wage rates
these are in accordance with prescribed guidelines and applicable in their regions, provinces or industries therein
national development plans; and to issue the corresponding wage orders, subject to
(e) To undertake studies, researches and surveys guidelines issued by the Commission;
necessary for the attainment of its functions and objectives, (c) To undertake studies, researches, and surveys
and to collect and compile data and periodically disseminate necessary for the attainment of their functions, objectives
information on wages and productivity and other related and programs, and to collect and compile data on wages,
information, including, but not limited to, employment, cost- incomes, productivity and other related information and
of-living, labor costs, investments and returns; periodically disseminate the same;
(f) To review plans and programs of the Regional (d) To coordinate with the other Regional Boards as
Tripartite Wages and Productivity Boards to determine may be necessary to attain the policy and intention of this
whether these are consistent with national development Code;
plans; (e) To receive, process and act on applications for
(g) To exercise technical and administrative supervision exemption from prescribed wage rates as may be provided
over the Regional Tripartite Wages and Productivity by law or any Wage Order; and
Boards; (f) To exercise such other powers and functions as may
(h) To call, from time to time, a national tripartite be necessary to carry out their mandate under this Code.
conference of representatives of government, workers and Implementation of the plans, programs, and projects of
employers for the consideration of measures to promote the Regional Boards referred to in the second paragraph,
wage rationalization and productivity; and letter (a) of this Article, shall be through the respective
(i) To exercise such powers and functions as may be regional offices of the Department of Labor and
necessary to implement this Act. Employment within their territorial jurisdiction; Provided,
The Commission shall be composed of the Secretary of however, That the Regional Boards shall have technical
Labor and Employment as ex-officio chairman, the Director- supervision over the regional office of the Department of
General of the National Economic and Development Labor and Employment with respect to the implementation
Authority (NEDA) as ex-officio vice-chairman, and two (2) of said plans, programs and projects.
members each from workers’ and employers’ sectors who Each Regional Board shall be composed of the Regional
shall be appointed by the President of the Philippines upon Director of the Department of Labor and Employment as
recommendation of the Secretary of Labor and Employment chairman, the Regional Directors of the National Economic
and Development Authority and the Department of Trade

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

and Industry as vice-chairmen and two (2) members each minimum wages in every region. These wages shall include
from workers’ and employers’ sectors who shall be wages varying with industries, provinces or localities if in the
appointed by the President of the Philippines, upon the judgment of the Regional Board, conditions make such local
recommendation of the Secretary of Labor and differentiation proper and necessary to effectuate the
Employment, to be made on the basis of the list of nominees purpose of this Title.
submitted by the workers’ and employers’ sectors,
respectively, and who shall serve for a term of five (5) years. Any person, company, corporation, partnership or any
Each Regional Board to be headed by its chairman shall other entity engaged in business shall file and register
be assisted by a Secretariat. (As amended by Republic Act annually with the appropriate Regional Board, Commission
No. 6727, June 9, 1989). and the National Statistics Office, an itemized listing of their
labor component, specifying the names of their workers and
ART. 123. Wage Order. - Whenever conditions in the employees below the managerial level, including learners,
region so warrant, the Regional Board shall investigate and apprentices and disabled/handicapped workers who were
study all pertinent facts; and based on the standards and hired under the terms prescribed in the employment
criteria herein prescribed, shall proceed to determine contracts, and their corresponding salaries and wages.
whether a Wage Order should be issued. Any such Wage
Order shall take effect after fifteen (15) days from its Where the application of any prescribed wage increase
complete publication in at least one (1) newspaper of general by virtue of a law or wage order issued by any Regional
circulation in the region. Board results in distortions of the wage structure within an
In the performance of its wage-determining functions, establishment, the employer and the union shall negotiate to
the Regional Board shall conduct public correct the distortions. Any dispute arising from wage
hearings/consultations, giving notices to employees’ and distortions shall be resolved through the grievance
employers’ groups, provincial, city and municipal officials procedure under their collective bargaining agreement and,
and other interested parties. if it remains unresolved, through voluntary arbitration.
Any party aggrieved by the Wage Order issued by the Unless otherwise agreed by the parties in writing, such
Regional Board may appeal such order to the Commission dispute shall be decided by the voluntary arbitrators within
within ten (10) calendar days from the publication of such ten (10) calendar days from the time said dispute was
order. It shall be mandatory for the Commission to decide referred to voluntary arbitration.
such appeal within sixty (60) calendar days from the filing In cases where there are no collective agreements or
thereof. recognized labor unions, the employers and workers shall
The filing of the appeal does not stay the order unless endeavor to correct such distortions. Any dispute arising
the person appealing such order shall file with the therefrom shall be settled through the National Conciliation
Commission, an undertaking with a surety or sureties and Mediation Board and, if it remains unresolved after ten
satisfactory to the Commission for the payment to the (10) calendar days of conciliation, shall be referred to the
employees affected by the order of the corresponding appropriate branch of the National Labor Relations
increase, in the event such order is affirmed. (As amended Commission (NLRC). It shall be mandatory for the NLRC to
by Republic Act No. 6727, June 9, 1989). conduct continuous hearings and decide the dispute within
ART. 124. Standards/Criteria for minimum wage fixing. - twenty (20) calendar days from the time said dispute is
The regional minimum wages to be established by the submitted for compulsory arbitration.
Regional Board shall be as nearly adequate as is The pendency of a dispute arising from a wage
economically feasible to maintain the minimum standards of distortion shall not in any way delay the applicability of any
living necessary for the health, efficiency and general well- increase in prescribed wage rates pursuant to the provisions
being of the employees within the framework of the national of law or wage order.
economic and social development program. In the
determination of such regional minimum wages, the As used herein, a wage distortion shall mean a situation
Regional Board shall, among other relevant factors, consider where an increase in prescribed wage rates results in the
the following: elimination or severe contraction of intentional quantitative
(a) The demand for living wages; differences in wage or salary rates between and among
(b) Wage adjustment vis-à-vis the consumer price index; employee groups in an establishment as to effectively
(c) The cost of living and changes or increases therein; obliterate the distinctions embodied in such wage structure
(d) The needs of workers and their families; based on skills, length of service, or other logical bases of
(e) The need to induce industries to invest in the differentiation.
countryside;
(f) Improvements in standards of living; All workers paid by result, including those who are paid
(g) The prevailing wage levels; on piecework, takay, pakyaw or task basis, shall receive not
(h) Fair return of the capital invested and capacity to less than the prescribed wage rates per eight (8) hours of
pay of employers; work a day, or a proportion thereof for working less than
(i) Effects on employment generation and family eight (8) hours.
income; and
All recognized learnership and apprenticeship
(j) The equitable distribution of income and wealth
agreements shall be considered automatically modified
along the imperatives of economic and social development.
insofar as their wage clauses are concerned to reflect the
The wages prescribed in accordance with the prescribed wage rates. (As amended by Republic Act No.
provisions of this Title shall be the standard prevailing 6727, June 9, 1989).

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Q: What is wage distortion? Congress. (As amended by Republic Act No. 6727, June 9,
A: Wage distortion is a situation where an increase in the 1989).
prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wages or
salary rates between and among employee groups in an Chapter VI
establishment as to effectively onliterate the distinctions ADMINISTRATION AND ENFORCEMENT
embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation. ART. 128. Visitorial and enforcement power. - (a) The
Secretary of Labor and Employment or his duly authorized
Elements of Wage Distortion: representatives, including labor regulation officers, shall
(a) An existing hierarchy of positions with corresponding have access to employer’s records and premises at any time
salary rates; of the day or night whenever work is being undertaken
(b) A significant change in the salary rate of a lower pay class therein, and the right to copy therefrom, to question any
without concomitant increase in the salary rate of a higher employee and investigate any fact, condition or matter which
one; may be necessary to determine violations or which may aid
(c) Elimination or severe contraction of the distinction in the enforcement of this Code and of any labor law, wage
between two levels; and order or rules and regulations issued pursuant thereto.
(d) The existence of the distortion in the same region of the
county. (b) Notwithstanding the provisions of Articles 129 and
217 of this Code to the contrary, and in cases where the
Note: If there’s a CBA, wage distortion may be valid. relationship of employer-employee still exists, the Secretary
Procedure for Correction of Wages Distortion of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance
A. Unionized Establishment orders to give effect to the labor standards provisions of this
(a) The employer and the union shall negotiate to create the Code and other labor legislation based on the findings of
distortions. labor employment and enforcement officers or industrial
(b) If the negotiations fail, the matter shall be brought to the safety engineers made in the course of inspection. The
grievance machinery under their collective bargaining Secretary or his duly authorized representatives shall issue
agreement. writs of execution to the appropriate authority for the
(c) If the grievance machinery fails to settle the dispute, the enforcement of their orders, except in cases where the
matter shall be threshed out through voluntary employer contests the findings of the labor employment and
arbitration. enforcement officer and raises issues supported by
documentary proofs which were not considered in the course
B. Non-Unionized Establishment of inspection. (As amended by Republic Act No. 7730, June
(a) The employers and workers shall negotiate to correct such 2, 1994).
distortions.
(b) If the negotiations fail, the matter shall be brought to the An order issued by the duly authorized representative
National Conciliation and Mediation Board for of the Secretary of Labor and Employment under this
conciliation. Article may be appealed to the latter. In case said order
(c) If conciliation fails, the dispute shall be referred to the involves a monetary award, an appeal by the employer may
appropriate branch of the National Labor Relations for be perfected only upon the posting of a cash or surety bond
compulsory arbitration. issued by a reputable bonding company duly accredited by
the Secretary of Labor and Employment in the amount
Q: Does the restoration from a wage distortion require that equivalent to the monetary award in the order appealed
the historical gap be returned? from. (As amended by Republic Act No. 7730, June 2, 1994).
A: There is no legal requirement that the historical gap that
existing before the implementation of the wage order be resorted (c) The Secretary of Labor and Employment may
to in precisely the same form or amount. likewise order stoppage of work or suspension of operations
of any unit or department of an establishment when non-
ART. 125. Freedom to bargain. - No wage order shall be compliance with the law or implementing rules and
construed to prevent workers in particular firms or regulations poses grave and imminent danger to the health
enterprises or industries from bargaining for higher wages and safety of workers in the workplace. Within twenty-four
with their respective employers. (As amended by Republic hours, a hearing shall be conducted to determine whether an
Act No. 6727, June 9, 1989). order for the stoppage of work or suspension of operations
ART. 126. Prohibition against injunction. – No shall be lifted or not. In case the violation is attributable to
preliminary or permanent injunction or temporary the fault of the employer, he shall pay the employees
restraining order may be issued by any court, tribunal or concerned their salaries or wages during the period of such
other entity against any proceedings before the Commission stoppage of work or suspension of operation.
or the Regional Boards. (As amended by Republic Act No. (d) It shall be unlawful for any person or entity to
6727, June 9, 1989). obstruct, impede, delay or otherwise render ineffective the
ART. 127. Non-diminution of benefits. - No wage order orders of the Secretary of Labor and Employment or his
issued by any regional board shall provide for wage rates duly authorized representatives issued pursuant to the
lower than the statutory minimum wage rates prescribed by authority granted under this Article, and no inferior court
or entity shall issue temporary or permanent injunction or

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

restraining order or otherwise assume jurisdiction over any (2) Raises issues supported by documentary proofs which were
case involving the enforcement orders issued in accordance not considered during the inspection.
with this Article.
Article 128 Article 129
(e) Any government employee found guilty of violation Visitorial and Adjudicatory Powers
of, or abuse of authority, under this Article shall, after Power
Enforcement Powers
appropriate administrative investigation, be subject to Basis for the Inspection Result Complaint
summary dismissal from the service. exercise of
power
(f) The Secretary of Labor and Employment may, by
Subject Violations of labor Purely money claims
appropriate regulations, require employers to keep and
Matter / and occupational
maintain such employment records as may be necessary in
Issues health standards
aid of his visitorial and enforcement powers under this Code.
Only to employees Includes also those
Powers of the Secretary of Labor Workers still in service separated from
(a) Visitorial power; involved service and does not
(b) Enforcement power; and seek reinsatement
(c) Power to order suspension or stoppage of operations. Amount No limit to the Cannot exceed
Involved amount involved P5,000
Powers under visitorial power Appellate Secretary of DOLE NLRC
1. Inspect the records and premises of an employer; Body
2. Copy pertinent records or documents; Period to 10 calendar days 5 calendar days
3. Question any employee; and Appeal
4. Investigate any fact, condition or matter. Includes the power to
Q: When can the visitorial power be exercised? Incidental order suspension or
A: At any time of the day or night, whenever work is being Powers stoppage of
undertaken therein. operations

Q: What if during the exercise of visitorial powers, violations ART. 129. Recovery of wages, simple money claims and
of Labor Standards were found? other benefits. - Upon complaint of any interested party, the
A: Art. 128-B becomes operational (enforcement power) and the Regional Director of the Department of Labor and
Secretary or his Regional Director may issue writs of execution. Employment or any of the duly authorized hearing officers
of the Department is empowered, through summary
Q: Where does the visitorial power and enforcement power proceeding and after due notice, to hear and decide any
exercised? matter involving the recovery of wages and other monetary
A: It is exercised over the establishment and not over the claims and benefits, including legal interest, owing to an
individual employees. employee or person employed in domestic or household
Q: Say, the Secretary or the Regional Director issued an service or househelper under this Code, arising from
order against an establishment, to which employees does the employer-employee relations: Provided, That such
order apply? complaint does not include a claim for reinstatement:
A: The entire employees who are still working with said Provided further, That the aggregate money claims of each
establishment should benefit therefrom even if they did not employee or househelper does not exceed Five thousand
sign the complaint or request for inspection. pesos (P5,000.00). The Regional Director or hearing officer
shall decide or resolve the complaint within thirty (30)
Midterm Exams: Maternity Children’s Hospital vs. calendar days from the date of the filing of the same. Any
Secretary of Labor (p. 452) sum thus recovered on behalf of any employee or
househelper pursuant to this Article shall be held in a special
Remedies: A party aggrieved by an Order issued by the deposit account by, and shall be paid on order of, the
Regional Director in connection with the exercise of the Secretary of Labor and Employment or the Regional
visitorial and enforcement powers under Article 128 of the Director directly to the employee or househelper concerned.
Labor Code can avail of the following remedies: (1) Motion for Any such sum not paid to the employee or househelper
Reconsideration, to be filed within seven calendar days from because he cannot be located after diligent and reasonable
receipt of the Order; and (2) Appeal to the Secretary of Labor effort to locate him within a period of three (3) years, shall
and Employment, to be filed within ten days from receipt of the be held as a special fund of the Department of Labor and
Order. A motion for reconsideration filed beyond the seven-day Employment to be used exclusively for the amelioration and
reglementary period shall be treated as an appeal if filed within benefit of workers.
the ten-day period for appeal, but subject to the requirements for
the perfection of an appeal. Any decision or resolution of the Regional Director or
hearing officer pursuant to this provision may be appealed
Limitations: The Secretary of DOLE or his duly authorized on the same grounds provided in Article 223 of this Code,
representatives cannot exercise the enforcement power under within five (5) calendar days from receipt of a copy of said
Art. 128 of the Labor Code when the employer: decision or resolution, to the National Labor Relations
(1) Contests the findings of Labor Standard & Welfare Officer; Commission which shall resolve the appeal within ten (10)
and calendar days from the submission of the last pleading
required or allowed under its rules.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

The Secretary of Labor and Employment or his duly (5) Right of pregnant women against dismissals and diminution
authorized representative may supervise the payment of of benefits on account of pregnancy.
unpaid wages and other monetary claims and benefits,
including legal interest, found owing to any employee or ART. 130. Facilities for women. - The Secretary of
househelper under this Code. (As amended by Section 2, Labor and Employment shall establish standards that will
Republic Act No. 6715, March 21, 1989). ensure the safety and health of women employees. In
appropriate cases, he shall, by regulations, require any
Adjudicatory Power: Article 129 confers upon the Regional employer to:
Director of DOLE the authority to hear and decide claims for (a) Provide seats proper for women and permit them to
unpaid wages and other monetary claims and benefits filed use such seats when they are free from work and during
by an employee or person employed in domestic or household working hours, provided they can perform their duties in
service, whose employment has been terminated and does this position without detriment to efficiency;
not seek reinstatement anymore. (b) To establish separate toilet rooms and lavatories for
men and women and provide at least a dressing room for
Requisites for Valid Exercise of the Adjudicatory Power: women;
(APES) (c) To establish a nursery in a workplace for the benefit
(a) The claim is Purely for recovery for unpaid wages and of the women employees therein; and
other monetary claims and benefits; (d) To determine appropriate minimum age and other
(b) The claim is filed by an Employee, househelper or person standards for retirement or termination in special
employed in domestic or household service; occupations such as those of flight attendants and the like.
(c) The employee, househelper or person employed in (As renumbered by R.A. No. 10151)
domestic of household service has already been Separated
from service and does not seek reinstatement anymore; and ART. 131. Maternity leave benefits. - (a) Every employer
(d) The Aggregate money claims of each claimant does not shall grant to any pregnant woman employee who has
exceed P5,000. rendered an aggregate service of at least six (6) months for
the last twelve (12) months, maternity leave of at least two
Q: What if the requisites are incomplete? (2) weeks prior to the expected date of delivery and another
A: The case will fall within the exclusive jurisdiction of the four (4) weeks after normal delivery or abortion with full
Arbitration Branch of the NLRC. pay based on her regular or average weekly wages. The
Q: What are the issues of cases falling within the jurisdiction employer may require from any woman employee applying
of the NLRC? for maternity leave the production of a medical certificate
A: (a) Praying for Reinstatement for termination of employment stating that delivery will probably take place within two
and the claim does not exceed P5,000; (b) The monetary claim weeks.
exceeds P5,000; and (c) Illegal dismissal of the employee which (b) The maternity leave shall be extended without pay
is no longer purely a money claim. on account of illness medically certified to arise out of the
pregnancy, delivery, abortion or miscarriage, which renders
the woman unfit for work, unless she has earned unused
Title III leave credits from which such extended leave may be
WORKING CONDITIONS FOR charged.
SPECIAL GROUPS OF EMPLOYEES (c) The maternity leave provided in this Article shall be
paid by the employer only for the first four (4) deliveries by
Chapter I a woman employee after the effectivity of this Code. (As
EMPLOYMENT OF WOMEN renumbered by R.A. No. 10151)
Changes made by R.A. No. 10151: (a) Renumbering of the Maternity Leave
provisions of the Labor Code; (b) Prior to its enactment, the REQUISITES:
Labor Code prohibited women from performing night work, it is (1) Has paid at least 3 months of her SSS Contribution.
now limited to pregnant women and nursing mothers; and (c) (2) Notification is given to the employer of the probable date of
added Chapter 5 in this Title. delivery.
(3) Applies only to first 4 deliveries.
Coverage: All employees except those employed in agriculture,
stock raising, fishing, maritime transport and inland navigation. BENEFITS:
(1) 100% salary during her period of leave;
Rights added:
(2) 60-day leave for normal delivery and 78-day leave for
(1) Right to free health assessment: (a) before taking up an
caesarean delivery;
assignment as a night worker; (b) at regular intervals; and (c) if
(3) Full payment of delivery expenses to be advanced by
they experience health problems caused by reason of performing
employer.
such work (Art. 155).
(2) Right to be transferred to a similar job which they are fit to
Paternity Leave
work (Art. 157).
CONDITIONS FOR ENTITLEMENT:
(3) Right to safe working conditions (Art. 156). (1) Employed at the time of delivery;
(2) Notified his employer of the pregnancy of his wife and her
(4) Right of pregnant women to alternatives to night work expected date of delivery; and
during certain periods (Art. 158). (3) His wife has given birth, suffers a miscarriage or an abortion.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

IMPORTANT FACTORS: planning among female workers in any establishment or


(1) Married to his pregnant legal wife; enterprise. (As renumbered by R.A. No. 10151)
(2) Cohabitating with legal wife;
(3) Applicable only to first 4 deliveries;  ART. 133. Discrimination prohibited. - It shall be
(4) Employed at the time of delivery; unlawful for any employer to discriminate against any
(5) Notice is given to his employer; woman employee with respect to terms and conditions of
(6) Presentation of marriage certificate; employment solely on account of her sex.
(7) Submission of birth certificate or medical certificate; The following are acts of discrimination:
(8) Not convertible to cash; and (a) Payment of a lesser compensation, including wage,
(9) Not applicable after 60-days from delivery. salary or other form of remuneration and fringe benefits, to
a female employees as against a male employee, for work of
BENEFITS:
equal value; and
(1) 7-day leave with pay.
(b) Favoring a male employee over a female employee
Parental Leave for Solo Parents with respect to promotion, training opportunities, study and
REQUISITES: scholarship grants solely on account of their sexes.
(1) 1- year of service whether continuous or broken; Criminal liability for the willful commission of any
(2) Must notify the employer of the availment; and unlawful act as provided in this Article or any violation of
(3) Must present his Solo Identification Card. the rules and regulations issued pursuant to Section 2 hereof
shall be penalized as provided in Articles 288 and 289 of this
Q: Who is a solo parent? Code: Provided, That the institution of any criminal action
A: (a) A woman who gives birth as a result of rape or crimes under this provision shall not bar the aggrieved employee
against chastity even without a final conviction of the offender, from filing an entirely separate and distinct action for
provided, that the mother keeps and raises the child; money claims, which may include claims for damages and
(b) Parent left solo or alone with the responsibility of parenthood other affirmative reliefs. The actions hereby authorized shall
due to: proceed independently of each other. (As amended by R.A.
(i) death of spouse; No. 6725 and renumbered by R.A. No. 10151).
(ii) detention or service of sentence of spouse for a criminal
conviction for at least one (1) year;  ART. 134. Stipulation against marriage. - It shall be
(iii) physical and/or mental incapacity of spouse as unlawful for an employer to require as a condition of
certified by a public medical practitioner; employment or continuation of employment that a woman
(iv) legal separation or de facto separation from spouse of employee shall not get married, or to stipulate expressly or
at least one (1) year, as long as he/she is entrusted with tacitly that upon getting married, a woman employee shall
the custody of the children; be deemed resigned or separated, or to actually dismiss,
(v) declaration of nullity or annulment of marriage as discharge, discriminate or otherwise prejudice a woman
decreed by a court r y a church as long as he/she is employee merely by reason of her marriage. (As renumbered
entrusted with the custody of the children; by R.A. No. 10151)
(vi) abandonment of spouse for at least one (1) year;
(c) Unmarried mother/father who has preferred to keep and rear Prohibited Acts under Article 134:
his/her child/children instead of having others care for them or 1) Requiring as a condition of employment that a female
give them up to a welfare institution; employee shall not get married;
(d) Any other person who solely provides parental care and 2) Requiring a female employee to resign upon getting married;
support to a child or children, provided he/she is duly licensed as or
a foster parent by the DSWD or duly appointed legal guardian 3) Dismissing or discriminating against female employee
by the court; because of her marriage.
(e) Any family member who assumes the responsibility of head
of a family as a result of the death, abandonment, disappearance, ART. 135. Prohibited acts. - (a) It shall be unlawful for
or prolonged absence of the parents or solo parent, provided, any employer:
that such abandonment, disappearance, or absence lasts for at (1) To deny any woman employee the benefits provided
least one (1) year. for in this Chapter or to discharge any woman employed by
him for the purpose of preventing her from enjoying any of
BENEFITS: the benefits provided under this Code.
(1) 7-day leave with pay which is non-cumulative. (2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due to her
ART. 132. Family planning services; incentives for pregnancy;
family planning. - (a) Establishments which are required by (3) To discharge or refuse the admission of such woman
law to maintain a clinic or infirmary shall provide free upon returning to her work for fear that she may again be
family planning services to their employees which shall pregnant. (As renumbered by R.A. No. 10151)
include, but not be limited to, the application or use of
contraceptive pills and intrauterine devices. Prohibited Acts under Article 135:
1) Dismissing a female employee for the purpose og preventing
(b) In coordination with other agencies of the her from enjoying the maternity leave benefit and other benefits
government engaged in the promotion of family planning, or facilities;
the Department of Labor and Employment shall develop 2) Dismissing a female employee on account of her pregnancy,
and prescribe incentive bonus schemes to encourage family or while on leave or in confinement due to her pregnancy; and

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

3) Dismissing or refusing admission of a female employee upon terms and conditions of employment on account of his age.
returning to her work for fear that she may again be pregnant. (As renumbered by R.A. No. 10151)
ART. 136. Classification of certain women workers . - READ: Apex Mining Co. v. NLRC and Barcenas v. NLRC
Any woman who is permitted or suffered to work, with or (p.484)
without compensation, in any night club, cocktail lounge, Chapter III
massage clinic, bar or similar establishments under the EMPLOYMENT OF HOUSEHELPERS
effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of ART. 139. Coverage. - This Chapter shall apply to all
Labor and Employment, shall be considered as an employee persons rendering services in households for compensation.
of such establishment for purposes of labor and social "Domestic or household service" shall mean service in
legislation. (As renumbered by R.A. No. 10151) the employer’s home which is usually necessary or desirable
for the maintenance and enjoyment thereof and includes
Chapter II ministering to the personal comfort and convenience of the
EMPLOYMENT OF MINORS members of the employer’s household, including services of
family drivers. (As renumbered by R.A. No. 10151)
ART. 137. Minimum employable age. - (a) No child
below fifteen (15) years of age shall be employed, except Non-compliance With the Stipulated Period (Art.147):
when he works directly under the sole responsibility of his Househelper fails to comply: forfeit any unpaid salary due him
parents or guardian, and his employment does not in any not exceeding fifteen (15) days.
way interfere with his schooling. Employer fails to comply: pay the househelper an indemnity
(b) Any person between fifteen (15) and eighteen (18) equivalent to fifteen (15) days pay.
years of age may be employed for such number of hours and
such periods of the day as determined by the Secretary of ART. 140. Contract of domestic service. - The original
Labor and Employment in appropriate regulations. contract of domestic service shall not last for more than two
(c) The foregoing provisions shall in no case allow the (2) years but it may be renewed for such periods as may be
employment of a person below eighteen (18) years of age in agreed upon by the parties. (As renumbered by R.A. No.
an undertaking which is hazardous or deleterious in nature 10151)
as determined by the Secretary of Labor and Employment. ART. 141. Minimum wage. - (a) Househelpers shall be
(As renumbered by R.A. No. 10151) paid the following minimum wage rates:
Q: What is the minimum age of employment? (1) Eight hundred pesos (P800.00) a month for
A: Generally, the minimum age of employment is fifteen (15) househelpers in Manila, Quezon, Pasay, and Caloocan cities
years old. and municipalities of Makati, San Juan, Mandaluyong,
Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas,
Q: Are there any exceptions? Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro
A: Yes. There are two instances. The first is when the child Manila and in highly urbanized cities;
works directly under the sole responsibility of his parents or (2) Six hundred fifty pesos (P650.00) a month for those
legal guardian and only members of his family are employed in other chartered cities and first-class municipalities; and
therein, provided that: (3) Five hundred fifty pesos (P550.00) a month for those
(a) the employment of the child neither endangers his in other municipalities.
life, safety, health and morals, nor impairs his normal Provided, That the employers shall review the
development; employment contracts of their househelpers every three (3)
(b) his parent or legal guardian provides the said child years with the end in view of improving the terms and
with the prescribed primary and/or secondary conditions thereof.
education; and Provided, further, That those househelpers who are
(c) his employer obtains an employment permit. receiving at least One thousand pesos (P1,000.00) shall be
The second is when the child’s employment or participation in covered by the Social Security System (SSS) and be entitled
public and entertainment or information through cinema, theatre, to all the benefits provided thereunder. (As amended by R.A.
radio or television is essential. No. 7655 and renumbered by R.A. No. 10151).

Children below 15 Children 15 years ART. 142. Minimum cash wage. - The minimum wage
years old but below 18 rates prescribed under this Chapter shall be the basic cash
years old wages which shall be paid to the househelpers in addition to
Hours of work Not more than 4 Not more than 8 lodging, food and medical attendance. (As renumbered by
hours a day but not hours a day but not R.A. No. 10151)
more than 20 hours more than 40 hours
a week a week  ART. 143. Assignment to non-household work. - No
Cannot be made to Cannot be made to househelper shall be assigned to work in a commercial,
Night Work
work from 8:00 work from 10:00 industrial or agricultural enterprise at a wage or salary rate
PM to 6:00 AM. PM to 6:00 AM lower than that provided for agricultural or non-
agricultural workers as prescribed herein. (As renumbered by
R.A. No. 10151)
ART. 138. Prohibition against child discrimination. - No
Q: What is the prohibition on assignment to non-household
employer shall discriminate against any person in respect to
work?

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

A: What is prohibited is not the assignment of the houshelper to Domestic Helper Wages:
a non-household work but the payment of a wage or salary rate Metro Manila – P2,500
lower than those prescribed for the non-household work. First Class Cities – P2,000
Municipalities – P1,500
Q: When will Article 143 not apply?
A: When the househelper is paid with the proper commercial, Domestic Helper Benefits:
industrial or agricultural wage rate. - 13th month pay
- Service incentive leave
 ART. 144. Opportunity for education. - If the househelper - Covered by SSS, Philhealth and Pag-ibig
is under the age of eighteen (18) years, the employer shall
SSS Contributions:
give him or her an opportunity for at least elementary
- Wages is more than P5,000/month – employer and employee
education. The cost of education shall be part of the
pays for his own share
househelper’s compensation, unless there is a stipulation to
- Wages is less than P5,000/month – the employer shoulders
the contrary. (As renumbered by R.A. No. 10151)
the househelper’s share.
 ART. 145. Treatment of househelpers. - The employer Chapter IV
shall treat the househelper in a just and humane manner. In EMPLOYMENT OF HOMEWORKERS
no case shall physical violence be used upon the househelper.
(As renumbered by R.A. No. 10151) ART. 151. Regulation of industrial homeworkers. - The
employment of industrial homeworkers and field personnel
Working hours of househelpers: shall be regulated by the government through the
Not more than 10 hours a day and must be allowed 4 days appropriate regulations issued by the Secretary of Labor
vacation each month. and Employment to ensure the general welfare and
protection of homeworkers and field personnel and the
The househelper must be given 8 hours of rest (need not be industries employing them. (As renumbered by R.A. No.
continuous) and 24-hours rest day (need not be continuous). 10151)

 ART. 146. Board, lodging, and medical attendance. - The Industrial Homework is a system of production under which
employer shall furnish the househelper, free of charge, work for an employer or contractor is carried out by a
suitable and sanitary living quarters as well as adequate homeworker at his home.
food and medical attendance. (As renumbered by R.A. No.
Limitation – Homework is not allowed in the manufatrue or
10151)
processing of:
ART. 147. Indemnity for unjust termination of services. - (a) explosives, fireworks and similar articles;
If the period of household service is fixed, neither the (b) drugs and poisons; and
employer nor the househelper may terminate the contract (c) other articles, the processing of which requires exposure to
before the expiration of the term, except for a just cause. If toxic substances.
the househelper is unjustly dismissed, he or she shall be paid


 === P
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the compensation already earned plus that for fifteen (15)
days by way of indemnity.
If the househelper leaves without justifiable reason, he

 ART. 152. Regulations of Secretary of Labor. - The
regulations or orders to be issued pursuant to this Chapter
or she shall forfeit any unpaid salary due him or her not
shall be designed to assure the minimum terms and
exceeding fifteen (15) days. (As renumbered by R.A. No.
conditions of employment applicable to the industrial
10151)
homeworkers or field personnel involved. (As renumbered by
 ART. 148. Service of termination notice. - If the duration R.A. No. 10151)
of the household service is not determined either in 
 ART. 153. Distribution of homework. - For purposes of
stipulation or by the nature of the service, the employer or this Chapter, the "employer" of homeworkers includes any
the househelper may give notice to put an end to the person, natural or artificial who, for his account or benefit,
relationship five (5) days before the intended termination of or on behalf of any person residing outside the country,
the service. (As renumbered by R.A. No. 10151) directly or indirectly, or through an employee, agent
contractor, sub-contractor or any other person:
 ART. 149. Employment certification. - Upon the (1) Delivers, or causes to be delivered, any goods,
severance of the household service relation, the employer articles or materials to be processed or fabricated in or
shall give the househelper a written statement of the nature about a home and thereafter to be returned or to be disposed
and duration of the service and his or her efficiency and of or distributed in accordance with his directions; or
conduct as househelper. (As renumbered by R.A. No. 10151) (2) Sells any goods, articles or materials to be processed
or fabricated in or about a home and then rebuys them after
ART. 150. Employment record. - The employer may
such processing or fabrication, either by himself or through
keep such records as he may deem necessary to reflect the some other person. (As renumbered by R.A. No. 10151)
actual terms and conditions of employment of his
househelper, which the latter shall authenticate by signature Contractor or Subcontractor refers to any person who, for the
or thumbmark upon request of the employer. (As account or benefit of an employer, delivers or causes to be
renumbered by R.A. No. 10151) delivered to a homeworker goods or articles to be processed in

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

or about his home and thereafter to be returned, disposed of or Art. 158. Women Night Workers. – Measures shall be
distributed in accordance with the direction of the employer. taken to ensure that an alternative to night work is available
to women workers who would otherwise be called upon to
perform such work:
Chapter V (a) Before and after childbirth, for a period of at least
EMPLOYMENT OF NIGHT WORKERS sixteen (16) weeks, which shall be divided between the time
Art. 154. Coverage – This chapter shall apply to all before and after childbirth;
persons, who shall be employed or permitted or suffered to (b) For additional periods, in respect of which a medical
work at night, except those employed in agriculture, stock certificate is produced stating that said additional periods
raising, fishing, maritime transport and inland navigation, are necessary for the health of the mother or child:
during a period not less than seven (7) consecutive hours, (1) During pregnancy;
including the interval from midnight to five o’clock in the (2) During a specified time beyond the period, after
morning, to be determined by the Secretary of Labor and childbirth is fixed pursuant to subparagraph (a) above,
Employment, after consulting the workers’ the length of which shall be determined by the DOLE
representatives/labor organizations and employers. after consulting the labor organizations and employers.
‘Night worker’ means any employed person whose During the periods referred to in this article:
work requires performance of a substantial number of hours (i) A woman worker shall not be dismissed or given
of night work which exceeds a specified limit. This limit shall notice of dismissal, except for just or authorized causes
be fixed by the Secretary of Labor after consulting the provided for in this Code that are not connected with
workers’ representatives/labor organizations and employers. pregnancy, childbirth and childcare responsibilities.
(As amended R.A. No. 10151) (ii) A woman worker shall not lose the benefits
Art. 155. Health Assessment – At their request, workers regarding her status, seniority, and access to promotion
shall have the right to undergo a health assessment without which may attach to her regular night work position.
charge and to receive advice how to reduce or avoid health Pregnant women and nursing mothers may be allowed
problems associated with their work: to work at night only if a competent physician, other than
(a) Before taking up an assigntment as a night worker; the company physician, shall certify their fitness to render
(b) At regular intervals during such an assignment; and work, and specify, in the case of pregnant employees, the
(c) If they experience health problems during such an period of the pregnancy that they can safely work.
assignment which are not caused by factors other than the The measures referred to in this article may include
performance of night work. transfer to day work where this is possible, the provision of
With the exception of a finding of unfitness for night social security benefits or a extension of maternity leave.
work, the findings of such assessments shall not be The provisions of this article shall not have the effect of
transmitted to others without the worker’s consent and shall reducing the protection and benefits connected with
not be used to their detriment. (As amended by R.A. No. maternity leave under existing laws.
10151) Art. 159. Compensation – The compensation for night
Art. 156. Mandatory Facilities - Suitable first-aid workers in the form of working time, pay or similar benefits
facilities shall be made available for workers performing shall recognize the exceptional nature of night work. (As
night work, including arrangements where such workers, amended by R.A. No. 10151)
where necessary, can be taken immediately to a place for Art. 160. Social Services. – Appropriate social services
appropriate treatment. The employers are likewise required shall be provided for night workers and, where necessary,
to provide safe and healthful working conditions and for workers performing night work. (As amended by R.A.
adequate or reasonable facilities such as sleeping or resting No. 10151)
quarters in the establishment and transportation from the
work premises to the nearest point of their residence subject Art. 161. Night Work Schedules. – Before introducing
to exceptions and guidelines to be provided by the work schedules requiring the services of night workers, the
Department of Labor and Employment. (As amended by R.A. employer shall consult the workers’ representatives/labor
No. 10151) organizations concerned on the details of such schedules and
the forms of organization of night work that are best
Art. 157. Transfer – Night workers who are certified adapted to the establishment and its personnel, as well as on
who are certified as unfit for night work, due to health the occupational health measures and social services which
reasons, shall be transferred, whenever practicable, to a are required. In establishments employing night workers,
similar job for which they are fit to work. consultation shall take place regularly. (As amended by R.A.
If such transfer to a similar job is not practicable, these No. 10151)
workers shall be granted the same benefited as other
workers who are unable to work, or to secure employment
during such period. Title I
A night worker certified as temporarily unfit for night MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
work shall be given the same protection against dismissal or
notice of dismissal as other workers who are prevented from Chapter I
working for reasons of health. (As amended by R.A. No. MEDICAL AND DENTAL SERVICES
10151) ART. 162. First-aid treatment. - Every employer shall
keep in his establishment such first-aid medicines and

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

equipment as the nature and conditions of work may


require, in accordance with such regulations as the
 (Finals Labstan) Required Medical and Dental Services
10 to 50 workers Graduate First-aider
Department of Labor and Employment shall prescribe.
Full-time registered nurse
The employer shall take steps for the training of a A full-time first-aider will
sufficient number of employees in first-aid treatment. 51 to 200 workers suffice if the workplace is
non-hazardous and a nurse

 ART. 163. Emergency medical and dental services. - It is not available.
shall be the duty of every employer to furnish his employees - Full-time registered nurse
in any locality with free medical and dental attendance and - Part-time physician
facilities consisting of: - Part-time dentist
(a) The services of a full-time registered nurse when the - Emergency clinic
201 to 300 workers
number of employees exceeds fifty (50) but not more than An emergency clinic shall
two hundred (200) except when the employer does not be provided regardless of
maintain hazardous workplaces, in which case, the services the nature of the
of a graduate first-aider shall be provided for the protection undertaking
of workers, where no registered nurse is available. The HAZARDOUS
Secretary of Labor and Employment shall provide by WORKPLACE:
appropriate regulations, the services that shall be required - Full-time registered nurse
where the number of employees does not exceed fifty (50) - Part-time physician
and shall determine by appropriate order, hazardous - Part-time dentist
workplaces for purposes of this Article; - Dental clinic
(b) The services of a full-time registered nurse, a part- - Infirmary or emergency
Over 300 workers
time physician and dentist, and an emergency clinic, when hospital with 1 bed capacity
the number of employees exceeds two hundred (200) but not for every 100 workers.
more than three hundred (300); and NON-HAZARDOUS
(c) The services of a full-time physician, dentist and a WORKPLACE:
full-time registered nurse as well as a dental clinic and an - Full-time registered nurse
infirmary or emergency hospital with one bed capacity for - Part-time physician
every one hundred (100) employees when the number of - Part-time dentist
employees exceeds three hundred (300). Note: In all workplaces where there are more than 1 workshift
in a day, the employer shall, in addition to the aforesaid
In cases of hazardous workplaces, no employer shall requirements, provide the services of full-time first-aider for
engage the services of a physician or a dentist who cannot each workshift.
stay in the premises of the establishment for at least two (2)
hours, in the case of those engaged on part-time basis, and
not less than eight (8) hours, in the case of those employed on 
 Hazardous Workplace:
full-time basis. Where the undertaking is non-hazardous in (a) Workers are exposed to dangerous, environmental elements,
nature, the physician and dentist may be engaged on contaminants or work conditions including radiation,
retainer basis, subject to such regulations as the Secretary of chemicals, fire, flammable substances, noxious components
Labor and Employment may prescribe to insure immediate and the like;
availability of medical and dental treatment and attendance (b) Workers are engaged in construction work, logging,
in case of emergency. (As amended by Presidential Decree NO. firefighting, mining, quarrying, blasting, stevedoring, dock
570-A, Section 26) work, deep sea fishing and mechanical farming;
(c) Workers are engaged in the manufacture or handling of
explosive and other pyrotechnic products;
(d) Workers are exposed to heavy or power-driven machinery or
equipment; or
(e) Workers are exposed to power-driven tools.


 ART. 164. When emergency hospital not required. - The
requirement for an emergency hospital or dental clinic shall
not be applicable in case there is a hospital or dental clinic
which is accessible from the employer’s establishment and
he makes arrangement for the reservation therein of the
necessary beds and dental facilities for the use of his
employees.
Requisites:
(1) In a written contract;
(2) Facilities for transportation;
(3) The hospital is 5km away in urban areas or 25mins away in
rural areas; and
(4) Must still maintain emergency clinics and Family planning
clinics.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

ART. 165. Health program. - The physician engaged by Types of Safety Committees:
an employer shall, in addition to his duties under this

Chairman of
Committee

established
Chapter, develop and implement a comprehensive

TYPE E

Appointed
committee

Chairman
occupational health program for the benefit of the employees
of his employer.

Joint

by
an
ART. 166. Qualifications of health personnel. - The
physicians, dentists and nurses employed by employers

Less than 100

Appointed by
pursuant to this Chapter shall have the necessary training in

TYPE D

- 1 Foreman

Chairman
- 1 Worker
Manager
industrial medicine and occupational safety and health. The

workers
Secretary of Labor and Employment, in consultation with
industrial, medical, and occupational safety and health
associations, shall establish the qualifications, criteria and
conditions of employment of such health personnel.

Manager /
100 to 200

Authorized
TYPE C

Appointed
- 1 Foreman
represent-

Chairman
- 1 Worker
ART. 167. Assistance of employer. - It shall be the duty

workers

tative
of any employer to provide all the necessary assistance to
ensure the adequate and immediate medical and dental

by
attendance and treatment to an injured or sick employee in
case of emergency.

Safety Man
201 to 400

Authorized

top official
TYPE B

tative who
Manager /

- Phyisian /
represent-

must be a

- 1 Worker
workers

- 1 Super-
Chapter II

Nurse
OCCUPATIONAL HEALTH AND SAFETY

visor
ART. 168. Safety and health standards. - The Secretary
of Labor and Employment shall, by appropriate orders, set

Safety Man
Authorized

top official
TYPE A

ment heads
tative who
and enforce mandatory occupational safety and health

Manager /

represent-

- 2 Workers
- Company
must be a
Over 400

physician
- 2 Depart-
workers
standards to eliminate or reduce occupational safety and
health hazards in all workplaces and institute new, and
update existing, programs to ensure safe and healthful
working conditions in all places of employment.

SECRETARY
Coverage: The occupational safety and health standards set by

CHAIRMAN

MEMBERS
the DOLE covers all establishments, workplaces, and other
undertakings, including agricultural enterprises, whether
operating for profit or not, except to:
(a) Those engaged in land, sea and air transportation, except
their garages, dry-docks, hangars, maintenance and repair shops
and offices; Safety Man: The principal function of the Safety Man is to act
(b) Residential places exclusively devoted to dwelling purposes; as the employer’s assistant and consultant in the application of
and programs to remove the hazards from the workplace and to
(c) Activities of a lessee regarding safety of mining installations, correct unsafe work practices.
surface or underground, within the mining claim or lease.
Q: What are considered as dangerous occurrences?
Duty of employers: A: (a) Explosion of boilers used for heating or power;
(a) Keep and maintain his workplace free from work hazards; (b) Explosion of a receiver or storage container;
(b) Give complete job safety instructions to all his workers; and (c) Bursting of revolving wheel, grinderstone or grinding wheel
(c) Provide only approved devices and equipment in his operated by mechanical power;
workplace. (d) Collapse of crane, elevator, hoist or other appliances used for
raising or lowering persons or goods;
Safety Committee – all establishments are required to have a (e) Explosion or fire causing damage to the structure of any
Safety Committee which should be organized within 1 month room; and
from the date the business starts operating and should reorganize (f) Electrical short circuit or failure of electrical machinery,
every January of each year. plant or apparatus.
ART. 169. Research. - It shall be the responsibility of
the Department of Labor and Employment to conduct
continuing studies and research to develop innovative
methods, techniques and approaches for dealing with
occupational safety and health problems; to discover latent
diseases by establishing causal connections between diseases
and work in environmental conditions; and to develop
medical criteria which will assure insofar as practicable that
no employee will suffer impairment or diminution in health,
functional capacity, or life expectancy as a result of his work
and working conditions.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

ART. 170. Training programs. - The Department of work environment, handling, storage or work procedures,
Labor and Employment shall develop and implement protection facilities and other safety and health hazards in
training programs to increase the number and competence workplace.
of personnel in the field of occupational safety and industrial
health. Q: What can the Department of Labor order for violations
of labor standard?
Training of Personnel in Safety and Health: A: It can order a stoppage of the establishment’s operation and
(1) In Non-Hazardous Workplace compel the employer at fault to pay his employees their wages
(a) 50 to 400 workers per shift – at least one of the during the stoppage.
supervisors or technical personnel shall be trained and
assigned as part-time safety man.
(b) Over 400 workers per shift – at least two of its Title II
supervisors shall be trained who shall work as part-time EMPLOYEES’ COMPENSATION AND STATE
safety man. INSURANCE FUND
(2) In Hazardous Workplace
(a) 20 to 200 workers per shift – at least one of its Chapter I
supervisors as part time safety man. POLICY AND DEFINITIONS
(b) Over 200 workers per shift – at least two of its
supervisors shall be trained who shall work as full-time ART. 172. Policy. - The State shall promote and
safety man. develop a tax-exempt employees’ compensation program
whereby employees and their dependents, in the event of
The employment of a full-time safety man may not be required work-connected disability or death, may promptly secure
if the employer enters into a written contract with a qualified adequate income benefit and medical related benefits.
consulting organization which shall develop and carry out his
safety and health activities; provided that the consultant shall Q: What are the benefits under Title II?
conduct plant visits at least 4 hours a week and is subject to call A: Medical benefit, Temporary total disability benefit,
any time to conduct accident investigations and is available Permanent total disability benefit, Permanent partial disability
during scheduled inspections or surveys by the Secretary of benefit, death benefit and Funeral benefit.
Labor and Employment or his authorized representatives.
Compensability of Disability or Death Arising From Injury
ART. 171. Administration of safety and health laws. - (a) For disability or death arising from injury is compensable, the
The Department of Labor and Employment shall be solely injury must be the result of an employment accident that
responsible for the administration and enforcement of satisfies all of the following conditions:
occupational safety and health laws, regulations and (a) The employee must have been injured at the place where his
standards in all establishments and workplaces wherever work requires him to be;
they may be located; however, chartered cities may be (b) The employee must have been performing his official
allowed to conduct industrial safety inspections of functions; and
establishments within their respective jurisdictions where (c) If the injury is sustained elsewhere, the employee must have
they have adequate facilities and competent personnel for been executing an order for the employer.
the purpose as determined by the Department of Labor and
Employment and subject to national standards established  DOCTRINES:
by the latter. PERSONAL COMFORT DOCTRINE – Acts performed by
an employee within the time and space limits of his
(b) The Secretary of Labor and Employment may, employment, to minister to his personal comfort, such as
through appropriate regulations, collect reasonable fees for satisfaction of his thirst, hunger or other physical demands, or to
the inspection of steam boilers, pressure vessels and pipings protect himself from excessive cold, shall be deemed incidental
and electrical installations, the test and approval for safe use to his employment and injuries the employee suffered in the
of materials, equipment and other safety devices and the performance of such acts shall be considered compensable and
approval of plans for such materials, equipment and devices. arising out of and in the course of employment.
The fee so collected shall be deposited in the national SPECIAL ENGAGEMENT DOCTRINE – Any injury or
treasury to the credit of the occupational safety and health accident suffered by an employee shall be compensable if it
fund and shall be expended exclusively for the occurred during the period of recreation, where such recreation
administration and enforcement of safety and other labor was officially conducted by the company from which such
laws administered by the Department of Labor and person is employed.
Employment. SHUTTLE BUS DOCTRINE – Any injury or accident
Types of Inspection: suffered by an employee while being in the shuttle bus provided
Technical Safety Inspection – refers to inspection for the by his or her employee shall be compensable PROVIDED that
purpose of safety determination of boilers, pressure vessels, the trip when the injury incurred was during an official and
internal combustion engines, electrical installations, elevators, routine trip.
hoisting equipment and other mechanical equipment. GOING-TO AND COMING-FROM PLACE OF WORK
General Safety Inspection – refers to inspection of work DOCTRINE – Injury or death resulting from an accident while
environment, including the location and operation of machinery the employee is going to, or coming from, the workplace is
other than those covered by technical safety inspection, compensable if the following conditions are definitively
adequacy of work space, ventilation, lighting, conditions of established: (a) The act of the employee of going to, or coming
from, the workplace must have been a continuing act and he had

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

not departed from his usual route to, or from, his workplace; and ART. 173. Definition of terms. - As used in this Title,
(b) If the employee was sent on a special errand, the special unless the context indicates otherwise:
errand must have been official and in connection with his work. (a) "Code" means the Labor Code of the Philippines
MINGLING OF PURPOSE DOCTRINE – When an instituted under Presidential Decree Numbered four
employee is ordered to perform work outside the workplace and hundred forty-two, as amended.
deviates from such directive to attend to some personal (b) "Commission" means the Employees’ Compensation
concerns, any injury or accident suffered by an employee, even Commission created under this Title.
during the period when such employee is attending to his (c) "SSS" means the Social Security System created
personal concerns, shall be compensable. under Republic Act Numbered Eleven hundred sixty-one, as
24-FOUR HOUR DUTY DOCTRINE – A soldier on active amended.
duty status is really on a 24-hour official duty status and is (d) "GSIS" means the Government Service Insurance
subject to military discipline and military law twenty-four hours System created under Commonwealth Act Numbered One
a day. He is subject to call and to the orders of his superior hundred eighty-six, as amended.
officers at all times, seven days a week, except when he is on (e) "System" means the SSS or GSIS, as the case may
vacation leave. be.
“INCREASED RISK” DOCTRINE – Diseases which are not (f) "Employer" means any person, natural or juridical,
classified as “occupational disease” are compensable only if the employing the services of the employee.
claimant can prove that the risk of contracting the disease was (g) "Employee" means any person compulsorily covered
increased by the working conditions. by the GSIS under Commonwealth Act Numbered One
WORK-AT-HOME DOCTRINE – When the work allows that hundred eighty-six, as amended, including the members of
an employee to perform his work in the comforts of his home, the Armed Forces of the Philippines, and any person
any injury or accident suffered by such employee is, incidental employed as casual, emergency, temporary, substitute or
to and while performing work, shall be compensable. (Lopez v. contractual, or any person compulsorily covered by the SSS
ECC. 228 SCRA 657. p.530) under Republic Act Numbered Eleven hundred sixty-one, as
amended.
Q: Is doing work at home compensable? (h) "Person" means any individual, partnership, firm,
A: Yes. If made under the discretion of employer. association, trust, corporation or legal representative
Q: Is death or injury while on vacation leave compensable? thereof.
A: Death or disability arising from injury sustained by an (i) "Dependent" means the legitimate, legitimated or
employee while on vacation leave is not compensable because legally adopted or acknowledged natural child who is
an employee who is on leave does not perform his usual duties. unmarried, not gainfully employed, and not over twenty-one
(21) years of age or over twenty-one (21) years of age
Q: Is death or disability arising from illness compensable? provided he is incapacitated and incapable of self-support
A: Death or disability is compensable: (a) if the illness is due to a physical or mental defect which is congenital or
classified as an occupational disease; or (b) if not classified as acquired during minority; the legitimate spouse living with
an occupational disease, the risk of contracting the same is the employee and the parents of said employee wholly
proven by substantial evidence to have been increased by the dependent upon him for regular support.
working conditions. (j) "Beneficiaries" means the dependent spouse until
he/she remarries and dependent children, who are the
Occupational Diseases: primary beneficiaries. In their absence, the dependent
1. Papiloma of the Bladder 14. Poisoning by Cadmium parents and subject to the restrictions imposed on dependent
2. Cancer or ulceration of the 15. Leukemia and lymphoma children, the illegitimate children and legitimate
skin or of the corneal 16. Cancer of the stomach descendants, who are the secondary beneficiaries: Provided,
surface of the eye 17. Cancer of the lungs, liver That the dependent acknowledged natural child shall be
3. Cataract and brain. considered as a primary beneficiary when there are no other
4. Deafness 18. Cardiovascular disease dependent children who are qualified and eligible for
5. Decompression Sickness 19. Cerebrovascular accidents monthly income benefit.
6. Dermatitis due to irritants 20. Malaria and (k) "Injury" means any harmful change in the human
and sensitizers Schistosomiasis organism from any accident arising out of and in the course
7. Infections 21. Pneumonia of the employment.
8. Ionizing Radiation Disease 22. Hernia (l) "Sickness" means any illness definitely accepted as
9. Poisoning 23. Bronchial Asthma an occupational disease listed by the Commission, or any
10. Pneumoconioses 24. Osteoarthritis illness caused by employment subject to proof that the risk
11. Diseases caused by 25. Viral Encephalitis of contracting the same is increased by working conditions.
abnormalities in 26. Peptic Ulcer For this purpose, the Commission is empowered to
temperature and humidity. 27. Pulmonary Tuberculosis determine and approve occupational diseases and work-
12. Vascular disturbances in 28. Viral Hepatitis related illnesses that may be considered compensable based
the upper extremities. 29. Essential Hypertension on peculiar hazards of employment.
13. Viral Hepatitis (m) "Death" means loss of life resulting from injury or
sickness.
 (n) "Disability" means loss or impairment of a physical
or mental function resulting from injury or sickness.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

(o) "Compensation" means all payments made under sum of three hundred forty and the average monthly salary
this Title for income benefits and medical or related benefits. credit.
(p) "Income benefit" means all payments made under (dd) "Credited years of service" - For a member covered
this Title to the providers of medical care, rehabilitation prior to January, 1975, nineteen hundred seventy-five minus
services and hospital care. the calendar year of coverage, plus the number of calendar
(q) "Medical benefit" means all payments made under years in which six or more contributions have been paid
this Title to the providers of medical care, rehabilitation from January, 1975 up to the calendar year containing the
services and hospital care. semester prior to the contingency. For a member covered on
(r) "Related benefit" means all payments made under or after January, 1975, the number of calendar years in
this Title for appliances and supplies. which six or more contributions have been paid from the
(s) "Appliances" means crutches, artificial aids and year of coverage up to the calendar year containing the
other similar devices. semester prior to the contingency.
(t) "Supplies" means medicine and other medical, (ee) "Monthly income benefit" means the amount
dental or surgical items. equivalent to one hundred fifteen percent of the sum of the
(u) "Hospital" means any medical facility, government average monthly salary credit multiplied by the replacement
or private, authorized by law, an active member in good ratio, and one and a half percent of the average monthly
standing of the Philippine Hospital Association and salary credit for each credited year of service in excess of ten
accredited by the Commission. years: Provided, That the monthly income benefit shall in no
(v) "Physician" means any doctor of medicine duly case be less than two hundred fifty pesos.
licensed to practice in the Philippines, an active member in
good standing of the Philippine Medical Association and Chapter II
accredited by the Commission. COVERAGE AND LIABILITY
(w) "Wages" or "Salary", insofar as they refer to the
computation of benefits defined in Republic Act No. 1161, as  ART. 174. Compulsory coverage. - Coverage in the State
amended, for SSS and Presidential Decree No. 1146, as Insurance Fund shall be compulsory upon all employers and
amended, for GSIS, respectively, except that part in excess their employees not over sixty (60) years of age: Provided,
of Three Thousand Pesos. That an employee who is over (60) years of age and paying
(x) "Monthly salary credit" means the wage or salary contributions to qualify for the retirement or life insurance
base for contributions as provided in Republic Act benefit administered by the System shall be subject to
Numbered Eleven hundred sixty-one, as amended, or the compulsory coverage.
wages or salary.
(y) "Average monthly salary credit" in the case of the Covered Employees. All employees not over 60 years old,
SSS means the result obtained by dividing the sum of the whether belonging to the public or private sector, are covered.
Employees who are over 60 years old are covered if they have
monthly salary credits in the sixty-month period
been paying contributions to the SSS or GSIS.
immediately following the semester of death or permanent
disability by sixty (60), except where the month of death or Public Sector Employees are those covered by the Government
permanent disability falls within eighteen (18) calendar Service Insurance System.
months from the month of coverage, in which case, it is the
result obtained by dividing the sum of all monthly salary Private Sector Employees are those who are covered by the
credits paid prior to the month of contingency by the total Social Security System.
number of calendar months of coverage in the same period.
(z) "Average daily salary credit" in the case of the SSS Coverage of Filipinos Working Abroad – Filipinos working
means the result obtained by dividing the sum of the six (6) abroad for an employer who carries on in the Philippines any
highest monthly salary credits in the twelve-month period trade, business, industry, undertaking or activity of any kind are
immediately preceding the semester of sickness or injury by covered, and therefore, entitled to the same benefits given to
one hundred eighty (180), except where the month of injury employees working in the Philippines.
falls within twelve (12) calendar months from the first ART. 175. Foreign employment. - The Commission shall
month of coverage, in which case it is the result obtained by ensure adequate coverage of Filipino employees employed
dividing the sum of all monthly salary credits by thirty (30) abroad, subject to regulations as it may prescribe.
times the number of calendar months of coverage in the
period. ART. 176. Effective date of coverage. - Compulsory
coverage of the employer during the effectivity of this Title
In the case of the GSIS, the average daily salary credit shall take effect on the first day of his operation, and that of
shall be the actual daily salary or wage, or the monthly the employee, on the date of his employment.
salary or wage divided by the actual number of working
days of the month of contingency.
(aa) "Quarter" means a period of three (3) consecutive
 ART. 177. Registration. - Each employer and his
months ending on the last days of March, June, September employees shall register with the System in accordance with
and December. its regulations.
(bb) "Semester" means a period of two consecutive The procedure for registration is set forth in Section 2, Rule II of
quarters ending in the quarter of death, permanent the Amended Rules on Employees’ Compensation which reads:
disability, injury or sickness.
(cc) "Replacement ratio" - The sum of twenty percent SEC. 2. GSIS. – The following guidelines shall apply
and the quotient obtained by dividing three hundred by the to the public sector:

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

(1) Every employer operating before January 1, 1975 Notorious Negligence


shall register not later than March 31, 1975; Notorious negligence is something more than mere or simple
(2) Every employer operating on or after January 1, negligence or contributory negligence. It signifies a deliberate
1975 shall register within one month from the act of the employee to disregard his own personal safety. It is
first day of operation; and more than mere carelessness or lack of foresight. It is failure to
(3) Every employee shall be registered through his observe any or slight care. It is tantamount to gross negligence.
employer within one month from the date of Disobedience to rules, orders, and/or prohibition does not per se
employment. constitute notorious negligence, if no intention can be attributed
to the injured to end his life.
Q: When is an employee deemed reported?
A: An employee is deemed reported for coverage if the Notorious negligence is exemplified by a seaman who jumps
SSS or GSIS has received a report or written into the sea to retrieve a 2-peso bill, as a result of which he was
communication about him from his employer and drowned. But an employee who inadvertently placed his left
Employee’s Compensation contribution paid in his name hand on a paper cutting machine which he thought at the time
before a compensable contingency occurs. was not working as a result of which, four of his fingers were
cut, is not guilty of notorious negligence because the employee
Q: What is the effect of failure to report an employee? acted in a casual manner in which anyone might have acted
A: Failure on the part of the employer to report his under similar conditions.
employee for coverage shall be penalized as follows:
(1) In case of failure or refusal to register employees, the ART. 179. Extent of liability. - Unless otherwise
employer or responsible official who committed the provided, the liability of the State Insurance Fund under this
violation shall be punished with fine of not less than P1,000 Title shall be exclusive and in place of all other liabilities of
nor more than P10,000 and/or imprisonment for the the employer to the employee, his dependents or anyone
duration of the violation or non-compliance or until such otherwise entitled to receive damages on behalf of the
time that rectification of the violation has been made; employee or his dependents. The payment of compensation
(2) In case of compensable contingency occurs after 30 under this Title shall not bar the recovery of benefits as
days from employment and before the System receives any provided for in Section 699 of the Revised Administrative
report, his employer shall be liable to the System for the Code, Republic Act Numbered Eleven hundred sixty-one, as
lump sum equivalent to the benefits to which he or his amended, Republic Act Numbered Forty-eight hundred
dependents may be entitled. sixty-four as amended, and other laws whose benefits are
administered by the System or by other agencies of the
 ART. 178. Limitation of liability. - The State Insurance government. (As amended by Presidential Decree No. 1921).
Fund shall be liable for compensation to the employee or his
Q: Can the injured employee avail of the compensation
dependents, except when the disability or death was
benefits under the Labor Code and sue the employer for
occasioned by the employee’s intoxication, willful intention
damages under the Civil Code?
to injure or kill himself or another, notorious negligence, or
A: [First View] The injured employee (or his heirs, in case of
otherwise provided under this Title.
death) may initiate an action for damages (not compensation
Factors That Bar Compensability under the Workmen’s Compensation Act) on the basis of
(a) Intoxication; negligence of the employer pursuant to the Civil Code.
(b) Willful intention to injure or kill himself or another; or
[Second View] The remedy of an employee for work-connected
(c) Gross negligence.
injury or accident is exclusively restricted to seeking the limited
Intoxication – refers to a person’s condition in being under the compensation provided under the Workmen’s Compensation
influence of liquor or prohibited drugs to the extent that his acts, Act.
words or conduct is impaired visibly, as to prevent him from
[Third View] The employee or his heirs can choose on whether
physically and mentally engaging in the duties of his
to avail of the limited compensation under the Workmen’s
employment.
Compensation Act or sue for higher damages under the Civil
To constitute a ground for denial of compensation, the degree of Code by reason of the employer’s negligence.
intoxication must be such that it rendered the employee
But once the choice has been made, the employee or his heris
incapable of doing his work. The accident or injury must be
can no longer opt for the other remedy.
shown by clear and convincing proof that it arose out of his
drunken condition. It is incumbent upon the party invoking Distinction Between Compensation and Damages.
drunkenness as a defense to show that the employee was Compensation is given to mitigate the harshness and insecurity
extremely drunk. of industrial life for the workman and his family. So long as the
death, injury or illness is wok-connected, entitlement to
Although intoxication may be a contributory cause to his injury,
compensation exists, regardless of the negligence of the
it must be shown that the intoxication was the proximate cause
employer.
of death or injury and the burden of proof lies on him who raises
Damages are given in order to vindicate a wrongful invasion of
drunkenness as a defense.
a right. It is recoverable by a person by a person who has
Willful Intention to Injure/Kill Himself or Another sustained injury either in person, property or relative rights,
A disability or death not caused by the employment but by the through the act or default of another.
employee’s own voluntary act. The compensation applies only
to work-connected injury, sickness, disability or death.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

ART. 180. Liability of third party/ies. - (a) When the members, one of whom shall represent the employees and
disability or death is caused by circumstances creating a the other, the employers, to be appointed by the President of
legal liability against a third party, the disabled employee or the Philippines for a term of six years. The appointive
the dependents, in case of his death, shall be paid by the member shall have at least five years experience in
System under this Title. In case benefit is paid under this workmen’s compensation or social security programs. All
Title, the System shall be subrogated to the rights of the vacancies shall be filled for the unexpired term only. (As
disabled employee or the dependents, in case of his death, in amended by Section 19 [c], Executive Order No. 126).
accordance with the general law. (b) The Vice Chairman of the Commission shall be
(b) Where the System recovers from such third party alternated each year between the GSIS General Manager
damages in excess of those paid or allowed under this Title, and the SSS Administrator. The presence of four members
such excess shall be delivered to the disabled employee or shall constitute a quorum. Each member shall receive a per
other persons entitled thereto, after deducting the cost of diem of two hundred pesos for every meeting that is actually
proceedings and expenses of the System. attended by him, exclusive of actual, ordinary and necessary
travel and representation expenses. In his absence, any
Third Party refers to any person who is not the employer of member may designate an official of the institution he serves
the injured employee. A co-employee would be considered a on full-time basis as his representative to act in his behalf.
third party. (As amended by Section 2, Presidential Decree No. 1368).
Q: Is injury or death caused by a third party compensable? (c) The general conduct of the operations and
A: Yes. If all the requisites for compensability are met. management functions of the GSIS or SSS under this Title
However, the claimant cannot receive payment twice for the shall be vested in its respective chief executive officers, who
same injury. shall be immediately responsible for carrying out the policies
of the Commission.
Compensability of Disability or Death Arising From Injury (d) The Commission shall have the status and category
For disability or death arising from injury is compensable, the of a government corporation, and it is hereby deemed
injury must be the result of an employment accident that attached to the Department of Labor and Employment for
satisfies all of the following conditions: policy coordination and guidance. (As amended by Section 2,
(a) The employee must have been injured at the place where his Presidential Decree No. 1368).
work requires him to be;
(b) The employee must have been performing his official ART. 183. Powers and duties. - The Commission shall
functions; and have the following powers and duties:
(c) If the injury is sustained elsewhere, the employee must have (a) To assess and fix a rate of contribution from all
been executing an order for the employer. employers;
(b) To determine the rate of contribution payable by an
ART. 181. Deprivation of the benefits. - Except as employer whose records show a high frequency of work
otherwise provided under this Title, no contract, regulation accidents or occupational diseases due to failure by the said
or device whatsoever shall operate to deprive the employee employer to observe adequate safety measures;
or his dependents of any part of the income benefits and (c) To approve rules and regulations governing the
medical or related services granted under this Title. Existing processing of claims and the settlement of disputes arising
medical services being provided by the employer shall be therefrom as prescribed by the System;
maintained and continued to be enjoyed by their employees. (d) To initiate policies and programs toward adequate
occupational health and safety and accident prevention in
Q: What are the benefits under the Employees’ the working environment, rehabilitation other than those
Compensation Law? (Bar Question) provided for under Article 190 hereof, and other related
programs and activities, and to appropriate funds therefor;
A: The benefits under the employees’ compensation law are in
(As amended by Section 3, Presidential Decree No. 1368).
the form of income or services, and consist of the following:
(e) To make the necessary actuarial studies and
(a) Medical services, appliances and supplies;
calculations concerning the grant of constant help and
(b) Rehabilitation services;
income benefits for permanent disability or death and the
(c) Permanent total disability;
rationalization of the benefits for permanent disability and
(d) Permanent partial disability;
death under the Title with benefits payable by the System
(e) Death; and
for similar contingencies: Provided, That the Commission
(f) Funeral.
may upgrade benefits and add new ones subject to approval
Chapter III of the President: and Provided, further, That the actuarial
ADMINISTRATION stability of the State Insurance Fund shall be guaranteed:
Provided, finally, That such increases in benefits shall not
ART. 182. Employees’ Compensation Commission. - (a) require any increases in contribution, except as provided for
To initiate, rationalize, and coordinate the policies of the in paragraph (b) hereof; (As amended by Section 3,
employees’ compensation program, the Employees’ Presidential Decree No. 1641).
Compensation Commission is hereby created to be (f) To appoint the personnel of its staff, subject to civil
composed of five ex-officio members, namely: the Secretary service law and rules, but exempt from WAPCO law and
of Labor and Employment as Chairman, the GSIS General regulations;
Manager, the SSS Administrator, the Chairman of the (g) To adopt annually a budget of expenditures of the
Philippine Medical Care Commission, and the Executive Commission and its staff chargeable against the State
Director of the ECC Secretariat, and two appointive Insurance Fund: Provided, That the SSS and GSIS shall

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

advance on a quarterly basis, the remittances of allotment of ART. 188. Enforcement of decisions. - (a) Any decision,
the loading fund for the Commission’s operational expenses order or resolution of the Commission shall become final
based on its annual budget as duly approved by the and executory if no appeal is taken therefrom within ten (10)
Department of Budget and Management; (As amended by days from notice thereof. All awards granted by the
Section 3, Presidential Decree No. 1921). Commission in cases appealed from decisions of the System
(h) To have the power to administer oath and shall be effected within fifteen days from receipt of notice.
affirmation, and to issue subpoena and subpoena duces (b) In all other cases, decisions, orders and resolutions
tecum in connection with any question or issue arising from of the Commission which have become final and executory
appealed cases under this Title; shall be enforced and executed in the same manner as
(i) To sue and be sued in court; decisions of the Court of First Instance, and the Commission
(j) To acquire property, real or personal, which may be shall have the power to issue to the city or provincial sheriff
necessary or expedient for the attainment of the purposes of or to the sheriff whom it may appoint, such writs of
this Title; execution as may be necessary for the enforcement of such
(k) To enter into agreements or contracts for such decisions, orders or resolutions, and any person who shall
services and as may be needed for the proper, efficient and fail or refuse to comply therewith shall, upon application by
stable administration of the program; the Commission, be punished by the proper court for
(l) To perform such other acts as it may deem contempt.
appropriate for the attainment of the purposes of the
Commission and proper enforcement of the provisions of Chapter IV
this Title. (As amended by Section 18, Presidential Decree CONTRIBUTIONS
No. 850). ART. 189. Employers’ contributions. - (a) Under such
ART. 184. Management of funds. - All revenues regulations as the System may prescribe, beginning as of the
collected by the System under this Title shall be deposited, last day of the month when an employee’s compulsory
invested, administered and disbursed in the same manner coverage takes effect and every month thereafter during his
and under the same conditions, requirements and employment, his employer shall prepare to remit to the
safeguards as provided by Republic Act Numbered eleven System a contribution equivalent to one percent of his
hundred sixty-one, as amended, with regard to such other monthly salary credit.
funds as are thereunder being paid to or collected by the SSS b) The rate of contribution shall be reviewed
and GSIS, respectively: Provided, That the Commission, periodically and subject to the limitations herein provided,
SSS and GSIS may disburse each year not more than twelve may be revised as the experience in risk, cost of
percent of the contribution and investment earnings administration and actual or anticipated as well as
collected for operational expenses, including occupational unexpected losses, may require.
health and safety programs, incidental to the carrying out of (c) Contributions under this Title shall be paid in their
this Title. entirety by the employer and any contract or device for the
deductions of any portion thereof from the wages or salaries
ART. 185. Investment of funds. - Provisions of existing of the employees shall be null and void.
laws to the contrary notwithstanding, all revenues as are not (d) When a covered employee dies, becomes disabled or
needed to meet current operational expenses under this Title is separated from employment, his employer’s obligation to
shall be accumulated in a fund to be known as the State pay the monthly contribution arising from that employment
Insurance Fund, which shall be used exclusively for payment shall cease at the end of the month of contingency and
of the benefits under this Title, and no amount thereof shall during such months that he is not receiving wages or salary.
be used for any other purpose. All amounts accruing to the
State Insurance Fund, which is hereby established in the SSS Payment of Premium Contributions – Sole Obligation of
and GSIS, respectively, shall be deposited with any Employer
authorized depository bank approved by the Commission, or The obligation to pay premium contributions for employees’
invested with due and prudent regard for the liquidity needs compensation is the sole obligation of the employer. Any
of the System. (As amended by Section 4, Presidential Decree contract or device for the deduction of any portion thereof from
No. 1368) the wages is null and void. The contributions required are non-
refundable.
ART. 186. Settlement of claims. - The System shall have
original and exclusive jurisdiction to settle any dispute Effect of Death or Separation from Employment
arising from this Title with respect to coverage, entitlement When a covered employee dies during employment or is
to benefits, collection and payment of contributions and separated from employment, his employer’s obligation to pay
penalties thereon, or any other matter related thereto, the monthly contribution shall cease on the last day of the month
subject to appeal to the Commission, which shall decide of the contingency.
appealed cases within twenty (20) working days from the Effect of Disability
submission of the evidence. When a covered employee becomes disabled during
ART. 187. Review. - Decisions, orders or resolutions of employment, his employer’s obligation to pay the monthly
the Commission may be reviewed on certiorari by the contribution arising from that employment shall be suspended
Supreme Court on question of law upon petition of an during the months that he is not receiving salary or wages.
aggrieved party within ten (10) days from notice thereof. ART. 190. Government guarantee. - The Republic of the
Philippines guarantees the benefits prescribed under this
Title, and accepts general responsibility for the solvency of

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

the State Insurance Fund. In case of any deficiency, the same employment, including assistance as may be within its
shall be covered by supplemental appropriations from the resources, to help each rehabilitee to develop his mental,
national government. vocational or social potential.
Chapter V Rehabilitation is the process by which there is provided a
MEDICAL BENEFITS balanced program of remedial treatment, vocational assessment,
and preparation designed to meet the individual needs of each
 ART. 191. Medical services. - Immediately after an handicapped employee to restore him to suitable employment,
employee contracts sickness or sustains an injury, he shall be including assistance as may be within its resources to help each
provided by the System during the subsequent period of his rehabilitee to develop his mental, vocational, or social potential.
disability with such medical services and appliances as the
Conditions for Entitlement
nature of his sickness or injury and progress of his recovery
(a) He has been reported to the SSS or the GSIS;
may require, subject to the expense limitation prescribed by
(b) He sustains a permanent disability as a result of a
the Commission.
compensable injury or sickness; and
ART. 192. Liability. - The System shall have the (c) He has not been placed in suitable employment.
authority to choose or order a change of physician, hospital
Period of Entitlement
or rehabilitation facility for the employee, and shall not be
Rehabilitation services shall be provided during the period of
liable for compensation for any aggravation of the
disability unless suspended or terminated under the following
employee’s injury or sickness resulting from unauthorized
grounds:
changes by the employee of medical services, appliances,
(a) Upon suitable employment;
supplies, hospitals, rehabilitation facilities or physicians.
(b) Upon suspension or termination of such services; or
ART. 193. Attending physician. - Any physician (c) by self-termination.
attending an injured or sick employee shall comply with all
Limitation
the regulations of the System and submit reports in
(a) Intoxication
prescribed forms at such time as may be required
(b) Willful Intention; or
concerning his condition or treatment. All medical
(c) Notorious negligence
information relevant to the particular injury or sickness
shall, on demand, be made available to the employee or the Chapter VI
System. No information developed in connection with DISABILITY BENEFITS
treatment or examination for which compensation is sought
shall be considered as privileged communication. ART. 197. Temporary total disability. - (a) Under such
regulations as the Commission may approve, any employee
ART. 194. Refusal of examination or treatment. - If the under this Title who sustains an injury or contracts sickness
employee unreasonably refuses to submit to medical resulting in temporary total disability shall, for each day of
examination or treatment, the System shall stop the payment such a disability or fraction thereof, be paid by the System
of further compensation during such time as such refusal an income benefit equivalent to ninety percent of his average
continues. What constitutes an unreasonable refusal shall be daily salary credit, subject to the following conditions: the
determined by the System which may, on its own initiative, daily income benefit shall not be less than Ten Pesos nor
determine the necessity, character and sufficiency of any more than Ninety Pesos, nor paid for a continuous period
medical services furnished or to be furnished. longer than one hundred twenty days, except as otherwise
provided for in the Rules, and the System shall be notified of
ART. 195. Fees and other charges. - All fees and other
the injury or sickness.
charges for hospital services, medical care and appliances,
(b) The payment of such income benefit shall be in
including professional fees, shall not be higher than those
accordance with the regulations of the Commission.
prevailing in wards of hospitals for similar services to
injured or sick persons in general and shall be subject to the Temporary total disability is the healing time or that period of
regulations of the Commission. Professional fees shall only time in which the claimant employee, by reason of the injury or
be appreciably higher than those prescribed under Republic sickness, is unable to perform any kind of labor.
Act Numbered sixty-one hundred eleven, as amended,
otherwise known as the Philippine Medical Care Act of 1969. Q: When is a disability total and temporary?
A: (a) If as a result of the injury or sickness, the employee is
 ART. 196. Rehabilitation services. - (a) The System shall, unable to perform any gainful occupation for a continuous
as soon as practicable, establish a continuing program, for period not exceeding 120 days; or
the rehabilitation of injured and handicapped employees (b) If the injury or sickness still requires medical attendance
who shall be entitled to rehabilitation services, which shall beyond 120 days but not to exceed 240 days from the onset of
consist of medical, surgical or hospital treatment, including the disability.
appliances if they have been handicapped by the injury, to Q: What if it exceeds 240 days?
help them become physically independent. A: If the claimant is still sick and unable to report for work as
(b) As soon as practicable, the System shall establish established by proper medical examination, the disability shall
centers equipped and staffed to provide a balanced program be considered permanent and total.
of remedial treatment, vocational assessment and
preparation designed to meet the individual needs of each
handicapped employee to restore him to suitable

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Q: Is it the injury that is compensated? One ring finger - 5


A: No. It is not the injury that is compensated, but the incapacity One little finger - 3
to work resulting in the impairment of one’s earning capacity. One big toe - 6
One toe - 3
Conditions for entitlement One arm - 50
(a) The employee should have been duly reported to the SSS or One hand - 39
the GSIS; One foot - 31
(b) The employee sustains the temporary total disability as a One leg - 46
result of the injury or sickness; and One ear - 10
(c) The SSS or the GSIS has been duly notified of the injury or Both ears - 20
sickness which caused his disability. Hearing of one ear - 10
Hearing of both ears - 50
 ART. 198. Permanent total disability. - (a) Under such Sight of one eye - 25
regulations as the Commission may approve, any employee
under this Title who contracts sickness or sustains an injury
resulting in his permanent total disability shall, for each (c) A loss of a wrist shall be considered as a loss of the
month until his death, be paid by the System during such a hand, and a loss of an elbow shall be considered as a loss of
disability, an amount equivalent to the monthly income the arm. A loss of an ankle shall be considered as loss of a
benefit, plus ten percent thereof for each dependent child, foot, and a loss of a knee shall be considered as a loss of the
but not exceeding five, beginning with the youngest and leg. A loss of more than one joint shall be considered as a
without substitution: Provided, That the monthly income loss of one-half of the whole finger or toe: Provided, That
benefit shall be the new amount of the monthly benefit for such a loss shall be either the functional loss of the use or
all covered pensioners, effective upon approval of this physical loss of the member.
Decree. (d) In case of permanent partial disability less than the
(b) The monthly income benefit shall be guaranteed for total loss of the member specified in the preceding
five years, and shall be suspended if the employee is paragraph, the same monthly income benefit shall be paid
gainfully employed, or recovers from his permanent total for a portion of the period established for the total loss of the
disability, or fails to present himself for examination at least member in accordance with the proportion that the partial
once a year upon notice by the System, except as otherwise loss bears to the total loss. If the result is a decimal fraction,
provided for in other laws, decrees, orders or Letters of the same shall be rounded off to the next higher integer.
Instructions. (e) In cases of simultaneous loss of more than one
(c) The following disabilities shall be deemed total and member or a part thereof as specified in this Article, the
permanent: same monthly income benefit shall be paid for a period
(1) Temporary total disability lasting continuously equivalent to the sum of the periods established for the loss
for more than one hundred twenty days, except as of the member or the part thereof. If the result is a decimal
otherwise provided for in the Rules; fraction, the same shall be rounded off to the next higher
 (2) Complete loss of sight of both eyes; integer.
(f) In cases of injuries or illnesses resulting in a
(3) Loss of two limbs at or above the ankle or wrist; permanent partial disability not listed in the preceding
(4) Permanent complete paralysis of two limbs; schedule, the benefit shall be an income benefit equivalent to
(5) Brain injury resulting in incurable imbecility or the percentage of the permanent loss of the capacity to work.
insanity; and (g) Under such regulations as the Commission may
(6) Such cases as determined by the Medical approve, the income benefit payable in case of permanent
Director of the System and approved by the partial disability may be paid in monthly pension or in lump
Commission. sum if the period covered does not exceed one year.
(d) The number of months of paid coverage shall be
defined and approximated by a formula to be approved by Permanent Partial Disability is when the employee sufers a
the Commission. lasting partial loss of the use of any part of his body as a result
of injury or sickness.
ART. 199. Permanent partial disability. - (a) Under such
regulations as the Commission may approve, any employee Conditions to entitlement
under this Title who contracts sickness or sustains an injury (a) The employee should have been reported to the SSS or the
resulting in permanent partial disability shall, for each GSIS;
month not exceeding the period designated herein, be paid (b) He sustains permanent partial disability as a result of injury
by the System during such a disability an income benefit for or sickness; and
permanent total disability. (c) The SSS or the GSIS has been duly notified of the injury or
(b) The benefit shall be paid for not more than the sickness which caused his disability.
period designated in the following schedules:
Chapter VII
Complete and permanent No. of Months DEATH BENEFITS
loss of the use of
ART. 200. Death. - (a) Under such regulations as the
One thumb - 10 Commission may approve, the System shall pay to the
One index finger - 8 primary beneficiaries upon the death of the covered
One middle finger - 6 employee under this Title, an amount equivalent to his

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

monthly income benefit, plus ten percent thereof for each Policy on Surviving Spouse
dependent child, but not exceeding five, beginning with the
youngest and without substitution, except as provided for in General Rule: The surviving spouse is entitled to the benefit
paragraph (j) of Article 167 hereof: Provided, however, That only if he or she is living with the deceased employee at the time
the monthly income benefit shall be guaranteed for five of death.
years: Provided, further, That if he has no primary Exceptions: Even if the surviving spouse is not living with the
beneficiary, the System shall pay to his secondary deceased employee at the time of death, the spouse may still be
beneficiaries the monthly income benefit but not to exceed entitled to death benefits if because: (PAPAS need LAB PASS)
sixty months: Provided, finally, That the minimum death (1) Refusal of the covered employee to continue living with the
benefit shall not be less than fifteen thousand pesos. surviving spouse; or the employee’s Abandonment of the
(b) Under such regulations as the Commission may said spouse without justifiable or valid cause;
approve, the System shall pay to the primary beneficiaries (2) Attempt on the part of the covered employee against the life
upon the death of a covered employee who is under of the surviving spouse or common child of the spouse;
permanent total disability under this Title, eighty percent of (3) Commission of an act of Sexual abuse against the
the monthly income benefit and his dependents to the surviving spouse, common child of the spouse by the
dependents’ pension: Provided, That the marriage must covered employee;
have been validly subsisting at the time of disability: (4) The covered employee’s recurrent commission of Physical
Provided, further, That if he has no primary beneficiary, the violence, or grossly Abusive conduct against the surviving
System shall pay to his secondary beneficiaries the monthly spouse or common child of the spouse;
pension excluding the dependents’ pension, of the remaining (5) The covered employee’s infliction of Physical violence, or
balance of the five-year guaranteed period: Provided, imposition of moral duress to compel the surviving spouse,
finally, That the minimum death benefit shall not be less common child of the spouse to change their religious or
than fifteen thousand pesos. political affiliation;
(c) The monthly income benefit provided herein shall be (6) Attempt of the covered employee to corrupt or induce the
the new amount of the monthly income benefit for the surviving spouse or common child of the spouse to engage
surviving beneficiaries upon the approval of this decree. in Prostitution, or to make them connive with the employee
(d) Funeral benefit. - A funeral benefit of Three in such act of corruption or inducement;
thousand pesos (P3,000.00) shall be paid upon the death of a (7) Drug addiction or habitual alcoholism of the covered
covered employee or permanently totally disabled pensioner. employee;
(8) Lesbianism or homosexuality of the covered employee;
Entitlement to Death Benefits (9) Contraction of Bigamous marriage by the covered
The rule is that only the primary beneficiaries are entitled to employee, whether in the Philippines or abroad;
death benefits. In the absence of primary beneficiaries, the (10) Sexual infidelity or perversion of the covered employee;
secondary beneficiaries are entitled to the death benefit. If the (11) The covered employee’s act of allowing the surviving
deceased employee has no primary or secondary beneficiaries at spouse or common child to be subjected to Acts of
the time of death, the death benefit shall accrue to the lasciviousness; and
Employee’s Compensation Fund. (12) The covered employee’s act of contraction of serious
Sexually transmitted disease extramaritally.
Q: Who are primary beneficiaries?
A: The primary beneficiaries are: Conditions for entitlement:
(a) The legitimate spouse living with the employee at the time of (a) The employee has been duly reported to the SSS or the
the employee’s death, until he or she marries; and GSIS;
(b) The legitimate, legitimated or legally adopted children who (b) He died as a result of an injury or sickness; and
are: (c) The SSS or GSIS has been duly notified of his death, as well
(i) unmarried; as the injury or sickness which caused his death.
(ii) not gainfully employed; and
(iii) not over 21 years old; or if over 21 years old, he is Period for Entitlement
incapable of self-support due to physical or mental defect The income benefit shall start at the month of death and shall
which is congenital or acquired during minority. continue to be paid for as long as the beneficiaries are entitled
thereto. The monthly income benefit which in no case shall be
Q: Who are secondary beneficiaries? less than P15,000, shall be guaranteed for 5 years. Thereafter,
A: The secondary beneficiaries are: the beneficiaries shall be paid the monthly income benefit for as
(a) The legitimate parents wholly dependent upon the employee long as they are entitled thereto.
for support; In case of secondary beneficiaries, the income benefit which
(b) The legitimate descendents and illegitimate children who is payable in monthly pension, shall not exceed the period of 60
are: months and the aggregate income benefit shall not be less than
(i) unmarried; P15,000.
(ii) not gainfully employed; and
(iii) not over 21 years old; or if over 21 years old, he is Death Benefit in Case of Presumptive Death
incapable of self-support due to physical or mental defect If one is declared presumptively dead, payment of benefit
which is congenital or acquired during minority. shall be reckoned from the date he was declared presumptively
dead except when the declaration of death specifies another date,
in which case, payment of death benefits shall start from the
latter date.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

Amount of Death Benefit Q: Are there any exceptions to that?


A: The spouse may still avail of the benefits even if there are not
For Primary Beneficiaries living together: PROVIDED, the surviving spouse was
Period – Guaranteed for 5 years abandoned, or there was an attempt against the surviving
spouse’s life, sexually abused, or any grounds for legal
Minimum Amount – Not less than P15,000 separation.

Amount: Chapter VIII


PROVISIONS COMMON TO INCOME BENEFITS
- Equivalent to monthly income benefit for permanent
disability. ART. 201. Relationship and dependency. - All questions
- If the employee has been receiving income benefits for of relationship and dependency shall be determined as of the
permanent total disability at the time of his death, the primary time of death.
beneficiaries shall be paid the monthly income benefit
equivalent to 80%. Q: What does the word “dependent” mean?
A: Dependent means:
Additional Benefits - Plus 10% for each dependent child not (a) The legitimate, legitimated or legally adopted children who
exceeding 5 children beginning with the youngest, and without are:
substitution. (i) unmarried;
(ii) not gainfully employed; and
Secondary Beneficiaries (iii) not over 21 years old; or if over 21 years old, he is
incapable of self-support due to physical or mental defect
Period – Guaranteed for 5 years
which is congenital or acquired during minority;
Minimum Amount – 60 times the monthly income of a primary (b) The legitimate spouse living with the employee at the time of
beneficiary which in no case be less than P15,000 the employee’s death, until he or she marries; and
(c) The parents of said employee wholly dependent upon him for
Amount: regular support.
- Equivalent to monthly income benefit for permanent ART. 202. Delinquent contributions. - (a) An employer
disability. who is delinquent in his contributions shall be liable to the
- If the employee has been receiving monthly income benefits System for the benefits which may have been paid by the
for permanent total disability at the time of his death, the System to his employees or their dependents, and any benefit
secondary beneficiaries shall be paid the monthly pension, and expenses to which such employer is liable shall
excluding the dependent’s pension of the remaining balance constitute a lien on all his property, real or personal, which
of the five year guaranteed period. is hereby declared to be preferred to any credit, except taxes.
The payment by the employer of the lump sum equivalent of
Additional Benefits - Plus 10% for each dependent child not
such liability shall absolve him from the payment of the
exceeding 5 children beginning with the youngest, and without
delinquent contribution and penalty thereon with respect to
substitution.
the employee concerned.
Funeral Benefit (b) Failure or refusal of the employer to pay or remit
The funeral benefit of P3,000 shall be paid upon the death of a the contribution herein prescribed shall not prejudice the
covered employee or permanently disabled pensioner to one of right of the employee or his dependents to the benefits under
the following: this Title. If the sickness, injury, disability or death occurs
(a) Surviving spouse; or before the System receives any report of the name of his
(b) Legitimate child who spent for the funeral expenses; or employee, the employer shall be liable to the System for the
(c) Any other person who can show incontrovertible proof that lump sum equivalent to the benefits to which such employee
he shouldered the funeral expenses. or his dependents may be entitled.

Q: Can the employee recover from the Labor Law and ART. 203. Second injuries. - If any employee under
Special Law (SSS)? permanent partial disability suffers another injury which
A: No. He must choose only one. results in a compensable disability greater than the previous
injury, the State Insurance Fund shall be liable for the
Q: Can an employee avail benefit and vacation leave? income benefit of the new disability: Provided, That if the
A: Yes. The benefit and vacation leave are two separate and new disability is related to the previous disability, the
distinct from each other. System shall be liable only for the difference in income
benefits.
Q: What are these benefits?
A: Medical, Disability, Death and Funeral Benefits. Comepensability of Second Injuries
Second injury resulting in disability which may be suffered
Q: Can the employee avail of the benefit and sue for by an employee under permanent partial disability, is
damages? compensable.
A: No. If the second injury is greater than the previous injury, the
Q: What if there are two “legal” wives? State Insurance Fund shall be liable for the income benefit of the
A: The spouse was not granted the benefit because there is a new disability.
presumption that he was not living with his legal wife. If the new injury is related to the previous one, the liability
is only for the difference in income benefits.

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

ART. 204. Assignment of benefits. - No claim for dependent notifies the System of his claim prior to the
compensation under this Title is transferable or liable to tax, payments.
attachment, garnishment, levy or seizure by or under any
legal process whatsoever, either before or after receipt by (b) In case of doubt as to the respective rights of rival
the person or persons entitled thereto, except to pay any claimants, the System is hereby empowered to determine as
debt of the employee to the System. to whom payments should be made in accordance with such
regulations as the Commission may approve. If the money is
Restrictions on Compensation Benefits payable to a minor or incompetent, payment shall be made
(a) Non-transferable; by the System to such person or persons as it may consider
(b) Not subject to tax; and to be best qualified to take care and dispose of the minor’s or
(c) Not subject to execution, attachment, garnishment, levy, or incompetent’s property for his benefit.
seizure, except in payment of a debt to the System.
ART. 209. Prohibition. - No agent, attorney or other
ART. 205. Earned benefits. - Income benefits shall, with person pursuing or in charge of the preparation or filing of
respect to any period of disability, be payable in accordance any claim for benefit under this Title shall demand or charge
with this Title to an employee who is entitled to receive for his services any fee, and any stipulation to the contrary
wages, salaries or allowances for holidays, vacation or sick shall be null and void. The retention or deduction of any
leaves and any other award of benefit under a collective amount from any benefit granted under this Title for the
bargaining or other agreement. payment of fees for such services is prohibited. Violation of
any provision of this Article shall be punished by a fine of
Q: Can accrued employee benefits under a contract or CBA not less than five hundred pesos nor more than five
be enjoyed simultaneously with employee compensation thousand pesos, or imprisonment for not less than six
benefits? months nor more than one year, or both, at the discretion of
A: Yes, because they are separate and distinct from each other. the court.
Q: What if the employee gains employment while being Q: What are the prohibited acts contemplated under this
compensated for permanent total disability? Article?
A: The compensation shall be suspended. A: Demanding or charging service fees; or deducting any
Q: How about if the employee is suffering from permanent amount from the compensation benefit in payment of services.
partial disability? ART. 210. Exemption from levy, tax, etc. - All laws to the
A: The employee shall continue to receive compensation contrary notwithstanding, the State Insurance Fund and all
benefits even if he is gainfully employed. its assets shall be exempt from any tax, fee, charge, levy, or
ART. 206. Safety devices. - In case the employee’s injury customs or import duty and no law hereafter enacted shall
or death was due to the failure of the employer to comply apply to the State Insurance Fund unless it is provided
with any law or to install and maintain safety devices or to therein that the same is applicable by expressly stating its
take other precautions for the prevention of injury, said name.
employer shall pay the State Insurance Fund a penalty of Chapter IX
twenty-five percent (25%) of the lump sum equivalent of the RECORDS, REPORTS AND PENAL PROVISIONS
income benefit payable by the System to the employee. All
employers, specially those who should have been paying a ART. 211. Record of death or disability. - (a) All
rate of contribution higher than required of them under this employers shall keep a logbook to record chronologically the
Title, are enjoined to undertake and strengthen measures for sickness, injury or death of their employees, setting forth
the occupational health and safety of their employees. therein their names, dates and places of the contingency,
nature of the contingency and absences. Entries in the
ART. 207. Prescriptive period. - No claim for logbook shall be made within five days from notice or
compensation shall be given due course unless said claim is knowledge of the occurrence of the contingency. Within five
filed with the System within three (3) years from the time the days after entry in the logbook, the employer shall report to
cause of action accrued. the System only those contingencies he deems to be work-
Q: When should an employee file his claim from connected.
compensation? (b) All entries in the employer’s logbook shall be made
A: Within 3 years from the time the cause of action accrued. by the employer or any of his authorized official after
verification of the contingencies or the employees’ absences
Q: When does the cause of action arise? for a period of a day or more. Upon request by the System,
A: From the time the employee lost his earning capacity. the employer shall furnish the necessary certificate
regarding information about any contingency appearing in
Q: Or is it from the time of the occurrence of his injury or the logbook, citing the entry number, page number and date.
illness? Such logbook shall be made available for inspection to the
A: No. From the time the employee lost his earning capacity. duly authorized representative of the System.
ART. 208. Erroneous payment. - (a) If the System in (c) Should any employer fail to record in the logbook an
good faith pays income benefit to a dependent who is inferior actual sickness, injury or death of any of his employees
in right to another dependent or with whom another within the period prescribed herein, give false information
dependent is entitled to share, such payments shall discharge or withhold material information already in his possession,
the System from liability, unless and until such other he shall be held liable for fifty percent of the lump sum

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LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

equivalent of the income benefit to which the employee may Title III
be found to be entitled, the payment of which shall accrue to MEDICARE
the State Insurance Fund.
ART. 215. Medical care. - The Philippine Medical Care
(d) In case of payment of benefits for any claim which is Plan shall be implemented as provided under Republic Act
later determined to be fraudulent and the employer is found Numbered Sixty-One Hundred Eleven, as amended.
to be a party to the fraud, such employer shall reimburse the
System the full amount of the compensation paid.
Title IV
ART. 212. Notice of sickness, injury or death. - Notice of ADULT EDUCATION
sickness, injury or death shall be given to the employer by
the employee or by his dependents or anybody on his behalf ART. 216. Adult education. - Every employer shall
within five days from the occurrence of the contingency. No render assistance in the establishment and operation of adult
notice to the employer shall be required if the contingency is education programs for their workers and employees as
known to the employer or his agents or representatives. prescribed by regulations jointly approved by the
Department of Labor and Employment and the Department
ART. 213. Penal provisions. - (a) The penal provisions of of Education, Culture and Sports.
Republic Act Numbered Eleven Hundred Sixty-One, as
amended, and Commonwealth Act Numbered One Hundred
Eighty-Six, as amended, with regard to the funds as are
thereunder being paid to, collected or disbursed by the
System, shall be applicable to the collection, administration
and disbursement of the Funds under this Title. The penal
provisions on coverage shall also be applicable.
(b) Any person who, for the purpose of securing
entitlement to any benefit or payment under this Title, or the
issuance of any certificate or document for any purpose
connected with this Title, whether for him or for some other
person, commits fraud, collusion, falsification,
misrepresentation of facts or any other kind of anomaly,
shall be punished with a fine of not less than five hundred
pesos nor more than five thousand pesos and an
imprisonment for not less than six months nor more than
one year, at the discretion of the court.
(c) If the act penalized by this Article is committed by
any person who has been or is employed by the Commission
or System, or a recidivist, the imprisonment shall not be less
than one year; if committed by a lawyer, physician or other
professional, he shall, in addition to the penalty prescribed
herein, be disqualified from the practice of his profession;
and if committed by any official, employee or personnel of
the Commission, System or any government agency, he shall,
in addition to the penalty prescribed herein, be dismissed
with prejudice to re-employment in the government service.
ART. 214. Applicability. - This Title shall apply only to
injury, sickness, disability or death occurring on or after
January 1, 1975.
ART. 214-A. Repeal. - All existing laws, Presidential
Decrees and Letters of Instructions which are inconsistent
with or contrary to this Decree, are hereby repealed:
Provided, That in the case of the GSIS, conditions for
entitlement to benefits shall be governed by the Labor Code,
as amended: Provided, however, That the formulas for
computation of benefits, as well as the contribution base,
shall be those provided under Commonwealth Act
Numbered One Hundred Eighty-Six, as amended by
Presidential Decree No. 1146, plus twenty percent thereof.

Lex Talionis Fraternitas Inc. 2014 Edition Page 50