LABOR LAW PRIMER

Construction of Labor Laws in favor of labor

As it is the State’s policy to protect the labor force, Article 4 of the Labor Code provides that all
doubts in the implementation of the provisions of the Code, as well as labor laws and labor
contracts, shall be resolved in favor of labor. However, when the law, regulations or contractual
provisions are clear, said provisions shall be interpreted accordingly.

While labor laws should be construed liberally in favor of labor, we must be able to balance this
with the equally important right of the [employer] to due process. [Gagui vs. Dejero, G.R. No.
196036 (2013)]

Labor Standards
General Rule:
The labor standards provisions of the Labor Code shall apply to employees of all establishments
and undertaking, whether for profit or not.

Exceptions:
(1) Government employees – covered by Civil Service rules and regulations
(2) Managerial Employees including members of the managerial staff
(3) Field Personnel – non-agricultural employees who regularly perform their duties away from
the principal place of business and whose hours of work in the field cannot be determined with
reasonable certainty.
(4) Members of the family of the employer who are dependent on him for support
(5) Domestic helpers and persons in personal service of another
(6) Workers who are paid by result as determined by DOLE regulation (“takay”, “pakyaw”)

Employer-Employee Relationship

1st Tier: Four-fold Test of Employer-Employee Relationship

1. Selection and engagement of the employee;
2. Payment of wages;
3. Power of dismissal; and
4. Employer’s power to employee’s conduct with respect to the means and methods by which
the work is to be accomplished

2nd Tier: “Economic Dependence” – Underlying economic realities of the activity/relationship,

taking into consideration the totality of circumstances surrounding the true nature of the
relationship between the parties.

Kinds of Employment

A. Probationary Employment
A probationary employee is one who is made to go on a trial period by an employer during which
the employer determines whether or not he is qualified for permanent employment, based on
reasonable standards made known to him at the time of engagement.

General Rule: Probationary employment shall not exceed six (6) months from the date the
employee started working.

Exceptions:
a. When it is covered by an apprenticeship agreement stipulating a longer period (Art.
296[281], LC);
b. When the parties to the employment contract agree otherwise, such as when established by
company policy or required by the nature of the work performed by the employee [San
Miguel Corp, v. del Rosario, G.R. Nos. 168194 & 168603, (2005), citing Buiser v.
Leogardo, G.R. No. L-63316, (1984)]; or
c. When it involves the 3 year probationary period of teachers [Mercado v. AMA Computer
College, G.R. No. 183572, (2010)]

Private school teachers (special case)

Questions respecting a private school teacher’s entitlement to security of tenure are governed by
the Manual of Regulations for Private Schools and not the Labor Code. [Aklan College v. Guarino,
G.R. No. 152949, (2007)]

The legal requisites, therefore, for acquisition by a teacher of permanent employment, of security
of tenure are:
(a) A full-time teacher;
(b) Must have rendered three consecutive years of service; and
(c) Service must have been satisfactory. [La Salette of Santiago v. NLRC, G.R. No. 82918, (1991)]

B. Regular Employees
A regular employee is one who is engaged to perform activities which are necessary and desirable
in the usual business or trade of the employer as against those which are undertaken for a specific
project or are seasonal.

C. Project Employees
A project employee is one who is hired for carrying out a separate job, distinct from the other
undertakings of the company, the scope and duration of which has been determined and made
known to the employees at the time of employment.

Whether or not the project has a direct relation to the business of the employer is not important,
BUT:
1. Employee must be informed of the nature and duration of project
2. Project and principal business of ER are two separate things
3. No attempt to deny security of tenure to the worker.

D. Seasonal Employees
Seasonal employees are those whose work or services to be performed are seasonal in nature,
employment is for the duration of the season. There is no continuing need for the worker.

E. Casual
A casual employee is engaged to perform a job, work or service which is merely incidental to the
business of the employer, and such job, work or service is for a definite period made known to the
employee at the time of engagement. In other words, this is someone who is not a regular, project
or seasonal employee.

Recruitment and Placement of Workers

Direct Hiring by Foreign Employers:

General Rule: No employer may hire a Filipino worker for overseas employment except through
the Boards and entities authorized by the Secretary of Labor. [Art. 18, LC]

Exceptions:
1. Members of the diplomatic corps;
2. International organizations;
3. Such other employees as may be allowed by the Sec. of Labor; and
4. Name hirees – those individuals who are able to secure contracts for overseas employment
on their own efforts and representation without the assistance or participation of any
agency. Their hiring, nonetheless, has to be processed through the POEA.

Remittance of Foreign Exchange Earnings

It shall be mandatory for all Filipino workers abroad to remit a portion of their foreign earnings to
their families, dependents, and/or beneficiaries in the country. [Art. 22, LC]

Amount required to be remitted [Executive Order No. 857]

The amount of one’s salary required to be remitted depends on the type or nature of work
performed by the employee.

The following are the percentages of foreign exchange remittance required from various kinds of
migrant workers:
1. Seaman or mariner – 80% of basic salary
2. Workers for Filipino contractors and construction companies – 70%
3. Doctors, engineers, teachers, nurses and other professional workers whose contract provide
for free board and lodging – 70%
4. All other professional workers whose employment contracts do not provide for free board
and lodging facilities – 50%
5. Domestic and other service workers – 50%
6. All other workers not falling under the aforementioned categories – 50%
7. Performing artists–50%

Individuals exempted from the mandatory remittance requirement:

1. The immediate family members, dependents or beneficiaries of migrant workers residing
with the latter abroad;
 2. Filipino servicemen working within US military installations;
3. Immigrants and Filipino professionals working with the United Nations and its agencies or
other specialized bodies.

Hours of Work
General Rule: 8 hours set as normal hours of work.
Exception: Hours of health personnel – they may be required by the exigencies of work to render
6 days (48 hours) weekly work, in which case they are entitled to additional 30% compensation of
their regular wage during work on the 6th day.

Compensable Hours
- All time during which an employee is required to be on duty; and
- All time during which an employee is permitted or suffered to work.

Semestral Break of Private School Teachers

Regular full-time teachers are entitled to salary during semestral breaks. These semestral breaks
are in the nature of work interruptions beyond the employees’ control. As such, these breaks cannot
be considered as absences within the meaning of the law for which deductions may be made from
monthly allowances. [University of the Pangasinan Faculty Union v. University of Pangasinan
(1984)]

Overtime Compensation
(1) An employer cannot compel an employee to work overtime.
Exception: Emergency overtime work as provided for in Art. 89

(2) Additional compensation is demandable only if the employer had knowledge and consented to
the overtime work rendered by the employee.
Exception: Express approval by a superior NOT a requisite to make overtime compensable:
a) If the work performed is necessary, or that it benefited the company; or
b) That the employee could not abandon his work at the end of his eight-hour work because
there was no substitute ready to take his place. [Manila Railroad Co. v. CIR, G.R. L-4614
(1952)]

Note: However, the Court has also ruled that a claim for overtime pay is NOT justified in the
absence of a written authority to render overtime after office hours during Sundays and holidays.
[Global Incorporated v. Atienza, G.R. L-51612-13 (1986)]

(3) Compensation for work rendered in excess of the 8 normal working hours in a day.
a) For ordinary days, additional 25% of the basic hourly rate.
b) For rest day/special day/holiday, additional 30% of the basic hourly rate.

(4) A given day is considered an ordinary day unless it is a rest day.

(5) Undertime does NOT offset overtime. Undertime work on any particular day shall not be offset
by overtime work on any other day. Permission given to the employee to go on leave on some
other day of the week shall NOT exempt the employer from paying the additional compensation
required in this Chapter. [Art. 88, LC]

Rates on Regular Holiday and Overtime Pay

HOLIDAY PAY (Hourly)

Day Rate
Regular Day (no holiday) 100%
Rest Day 130%
Special Non-working holiday 130%
Special Non-working holiday + Rest Day 150%
Regular Holiday 200%
Regular Holiday + Rest Day 260%

OVERTIME PAY (Hourly)

Day Non-night shift Night Shift
Regular day 125% 137.5%
Rest Day 169% 185.9%
Special Non-working holiday 169% 185.9%
Special Non-working holiday 195% 214.5%
+ Rest Day
Regular Holiday 260% 286%
Regular Holiday + Rest Day 338% 371.8%

Night shift worker: Any employed person whose work covers the period from 10 o’clock in the
evening to 6 o’clock the following morning, provided that the worker performs no less than 7
consecutive hours of work.

Night shift workers are entitled to additional 10% compensation of an employee’s regular wage
for each hour of work performed between 10pm and 6am.
Exceptions:
1. Government employees, including government-owned and/or controlled corporations;
2. Retail and service establishments regularly employing not more than five (5) workers;
3. Domestic helpers and persons in the personal service of another;
4. Managerial employees as defined in Book Three of this Code;
5. Field personnel and other employees whose time and performance is unsupervised by the
employer including those who are engaged on task or contract basis, purely commission
basis, or those who are paid a fixed amount for performing work irrespective of the time
consumed in the performance thereof.

Wages
General Rule: No work, no pay
Exception: When the laborer was able, willing and ready to work but was illegally locked out,
suspended or dismissed, or otherwise illegally prevented from working.

Minimum Wage
Wage Order NCR-21: ₱512.00/day (₱502.00 basic wage + ₱10.00 COLA) for non-agricultural
workers (as of 05 October 2017)
Wage Order NCR-DW-01: ₱3,500/month for domestic workers (as of 16 December 2017)

Workers Paid by Results: should receive not less than the prescribed wage rates per 8 hours of
work a day, or a proportion thereof for work less than 8 hours.

Apprentices and Learners: wages cannot be less than 75% of the applicable minimum wage rate.

Wage Deductions
General Rule: No employer, in his own behalf or in behalf of any person, shall make any deduction
from the wages of his employees.
Exceptions:
With employee’s written consent Without employee’s consent
SSS contributions Worker’s insurance acquired by the employer
Philhealth contributions Union dues, where the right to check-off is
recognized by the employer (provided in the
CBA)
Pag-IBIG contributions Debts of the employee to the employer that
have become due and demandable
Value of meals and other facilities
Payments to 3rd parties (must be consented)
Deductions on absences
Union dues, where check-off is not in CBA

Leaves

1. Service Incentive Leave – Every employee who has rendered at least one year of service
(service for not less than 12 month, whether continuous or broken) shall be entitled to a yearly
service incentive leave of five days with pay.
Exceptions:
a. Government employees, including GOCCs;
b. Domestic helpers and persons in the personal service of another;
c. Managerial employees as defined in the Labor Code;
d. Field personnel and other employees whose performance is unsupervised by the employer
including those who are engaged on task or contract basis, purely commission basis, or
those who are paid a fixed amount for performing work irrespective of the time consumed
in the performance thereof;
e. Those who are already enjoying the benefit herein provided;
f. Those enjoying vacation leave with pay of at least 5 days;
g. Those employed in establishments regularly employing less than 10 employees.

2. Maternity Leave – Every pregnant woman in the private sector, whether married or unmarried,
is entitled to maternity leave benefits. This is applicable to both childbirth and miscarriage.

Requirements:
 a. Employment: A female employee employed at the time of delivery, miscarriage or abortion
b. Contribution: who has paid at least 3 monthly contributions in the 12-month period
immediately preceding the semester of her childbirth, or miscarriage.
c. Notice: employee notified employer of her pregnancy and the probable date of her
childbirth, which notice shall be transmitted to the SSS in accordance with the rules and
regulations it may provide.

Benefit received
A daily maternity benefit equivalent to 100% of her average daily salary credit for:
(1) 60 days for normal delivery
(2) 78 days for caesarean delivery

The maternity benefits provided under the Social Security Law shall be paid only for the first four
(4) deliveries or miscarriages.

3. Paternity Leave – Paternity leave is granted to all married male employees in the private and
public sectors, regardless of their employment status (e.g. probationary, regular, contractual,
project basis).

It shall be for 7 calendar days, with full pay, consisting of basic salary and mandatory allowances
fixed by the Regional Wage Board, if any, provided that his pay shall not be less than the mandated
minimum wage. It shall apply to the first 4 deliveries of the employee’s lawful wife with whom
he is cohabiting.

Requirements:
a. He is married;
b. He is an employee at the time of the delivery of his child;
c. He is cohabiting with his spouse at the time that she gives birth or suffers a miscarriage;
d. He has applied for paternity leave with his ER within a reasonable period of time from the
expected date of delivery by his pregnant spouse, or within such period as may be provided
by company rules and regulations, or by CBA; and,
e. His wife has given birth or suffered a miscarriage.

In the event that the paternity leave is not availed of, it shall not be convertible to cash and shall
not be cumulative.

4. Parental Leave (Solo Parents) – Leave benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where physical presence is required.

Coverage
Any solo parent or individual who is left alone with the responsibility of parenthood due to:
a. Giving birth as a result of rape or and other crimes against chastity even without a final
conviction of the offender: Provided, That the mother keeps and raises the child;
b. Death of spouse;
c. Spouse is detained or is serving sentence for a criminal conviction for at least one (1) year;
d. Physical and/or mental incapacity of spouse as certified by a public medical practitioner;
 e. Legal separation or de facto separation from spouse for at least one (1) year: Provided, that
he/she is entrusted with the custody of the children;
f. Declaration of nullity or annulment of marriage as decreed by a court or by a church:
Provided, that he/she is entrusted with the custody of the children;
g. Abandonment of spouse for at least one (1) year;
h. Unmarried father/mother who has preferred to keep and rear his/her child/children, instead
of having others care for them or give them up to a welfare institution;
i. Any other person who solely provides parental care and support to a child or children:
Provided, that he/she is duly licensed as a foster parent by the Department of Social Welfare
and Development (DSWD) or duly appointed legal guardian by the court; and
j. Any family member who assumes the responsibility of head of family as a result of the
death, abandonment, disappearance, or prolonged absence of the parents or solo parent for
at least one (1) year.

Requirements:
a. He/she has rendered at least one (1) year of service, whether continuous or broken;
b. He/she has notified his/her employer that he/she will avail himself/herself of it, within a
reasonable period of time; and
c. He/she has presented to his/her employer a Solo Parent Identification Card, which may be
obtained from the DSWD office of the city or municipality where he/she resides.

5. VAWC Leave – Leave benefit granted to women employees who are victims of violence, as
defined in RA 9262. The leave benefit covers the days that the women employee has to attend to
medical or legal concerns.

In addition to other paid leaves under existing labor laws, company policies, and/or CBA, the
qualified victim-employee shall be entitled to a leave of up to 10 days with full pay, consisting of
basic salary and mandatory allowances fixed by the Regional Wage Board, if any.

To be entitled to the leave benefit, the only requirement is for the victim-employee to present to
her employer a certification from the barangay chairman or barangay councilor or prosecutor or
the Clerk of Court, as the case may be, that an action relative to the matter is pending.

A victim of VAWC who is employed shall be entitled to a paid leave of up to ten (10) days in
addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations and
other existing laws and company policies:
a. At any time during the application of any protection order, investigation, prosecution
and/or trial of the criminal case, extendible when the necessity arises as specified in the
protection order.
b. Upon the issuance of the Punong Barangay/Kagawad or prosecutor or the Clerk of Court,
as the case may be, of a certification (at no cost) to the woman that such an action is
pending, and this is all that is required for the employer to comply with the 10- day paid
leave.
c. For government employees, in addition to the aforementioned certification, the employee
concerned must file an application for leave citing as basis R.A. 9262.
6. Special Leave Benefits for Women (Magna Carta for Women) - A female employee’s leave
entitlement of two (2) months with full pay from her employer based on her gross monthly
compensation following surgery caused by gynecological disorders, provided that she has rendered
continuous aggregate employment service of at least six (6) months for the last 12 months.

Service Charges

This rule shall apply only to establishments which collect service charges such as:
1. Hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars,
casinos and gambling houses;
2. Similar enterprises including those entities operating primarily as private subsidiaries of
the Government.

Service charges are distributed in accordance with the following percentage of sharing:
 Eighty-five percent (85%) for the employees to be distributed equally among them;
 Fifteen percent (15%) for the disposition of management to answer for losses and
breakages and, at the discretion of the management for distribution to managerial
employees.

The shares shall be distributed to employees not less than once every 2 weeks or twice a month at
intervals not exceeding 16 days.

13th Month Pay and Other Bonuses

General Rule: ALL EMPLOYERS are hereby required to pay all their rank and file employees a
13th month pay not later than Dec 24 of every year, provided that they have worked for at least
one (1) month during a calendar year.

Exempted Employers:
a. Government, its political subdivisions, including GOCCs except those operating
essentially as private subsidiaries of the Government;
b. Employers already paying their employees a 13th month pay or more in a calendar year or
its equivalent at the time of this issuance; and
c. Employers of those who are paid on purely commission, boundary or task basis and those
who are paid a fixed amount for performing specific work, irrespective of the time
consumed in the performance thereof (except those workers who are paid on piece-rate
basis, in which case their employer shall grant them 13th month pay).

Base Amount:
1. General rule is that basic salary for computation of 13th month pay shall include:
2. Cost of living allowances (COLA) integrated into the basic salary of a covered employee
pursuant to EO 178.
3. All remunerations or earnings paid by this employer for services rendered.
4. But not the allowances and monetary benefits which are not considered or integrated as
part of the regular or basic salary, such as the cash equivalent of:
(a) Unused vacation and sick leave credits,
 (b) Overtime,
(c) Premium,
(d) Night differential,
(e) Holiday pay, and
(f) Cost-of-living allowances.

13th Month Pay in Special Cases

1. Paid by Results: Employees who are paid on piece work basis are, by law, entitled to the
13th Month Pay. (Revised Guidelines on the Implementation of the 13th Month Pay Law)
2. Fixed or Guaranteed Wage: Employees who are paid a fixed or guaranteed wage plus
commission are entitled to 13th month pay (not purely commission); the basis for
computation shall be both their fixed or guaranteed wage and commission. (Revised
Guidelines)
3. Those with Multiple Employers: Government Employees working part time in a private
enterprise, including private educational institutions, as well as Employees working in two
or more private firms, whether on full or part time bases, are entitled to the required 13th
Month Pay from all their private Employers regardless of their total earnings from each or
all their employers. (Revised Guidelines)
4. Private School Teachers: Private school teachers, including faculty members of
universities and colleges, are entitled to the required 13th month pay, regardless of the
number of months they teach or are paid within a year, if they have rendered service for at
least one (1) month within a year. (Revised Guidelines)
5. Resigned or Separated Employee: An Employee who has resigned or whose services were
terminated at any time before the time for payment of the 13th month pay is entitled to this
monetary benefit in proportion to the length of time he worked during the year, reckoned
from the time he started working during the calendar year up to the time of his resignation
or termination from service. [Revised Guidelines]
6. Terminated Employees: The payment of the 13th month pay may be demanded by the
employee upon the cessation of employer-employee relationship.

Separation Pay (see Termination of Services)

Amount:
1. ½ month pay per year of service
a. Retrenchment to prevent losses (i.e. reduction of personnel effected by
management to prevent losses);
b. Closure or cessation of operation of an establishment not due to serious losses or
financial reverses; and,
c. When the EE is suffering from a disease not curable within a period of six (6)
months and his/her continued employment is prejudicial to his/her health or to the
health of his/her co- employees

2. 1 month pay per year of service

a. Installation by employer of labor-saving devices;
b. Redundancy, as when the position of the employee has been found to be excessive
or unnecessary in the operation of the enterprise;
 c. Impossible reinstatement of the employee to his/her former position or to a
substantially equivalent position for reasons not attributable to the fault of the
employer, as when the reinstatement ordered by a competent authority cannot be
implemented due to closure of cessation of operations of the
establishment/employer, or the position to which he/she is to be reinstated no longer
exists and there is no substantially equivalent position in the establishment to which
he/she can be assigned.

Retirement Pay

R.A. No. 7641, otherwise known as "The Retirement Pay Law," only applies in a situation where:
1. There is no collective bargaining agreement or other applicable employment contract
providing for retirement benefits for an employee; OR
2. There is a collective bargaining agreement or other applicable employment contract
providing for retirement benefits for an employee, but it is below the requirements set for
by law.

In the absence of a retirement plan or agreement providing for retirement benefits of employees in
the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond
sixty-five (65) years which is hereby declared the compulsory retirement age (and have served the
establishment for at least 5 years).

Optional retirement – in the absence of a retirement plan or other applicable agreement providing
for retirement benefits of EEs in an establishment, an EE may retire upon reaching the age of 60
or more if he has served for at least 5 years in said establishment. (50 years old for mine workers)

Compulsory retirement – in the absence of a retirement plan or other applicable agreement

providing for retirement benefits of EEs in an establishment, an EE shall be retired at the age of
65 years. (60 years old for mine workers)

The minimum retirement pay shall be equivalent to one-half (1/2) month salary for every year of
service, a fraction of at least six (6) months being considered as one whole year.

For the purpose of computing retirement pay, “one-half month salary” shall include all of the
following:
1. (1) Fifteen (15) days salary based on the latest salary rate;
2. (2) Cash equivalent of five (5) days of service incentive leave;
3. (3) One-twelfth (1/12) of the 13th month pay. (1/12 x 365/12 = .083 x 30.41 = 2.52)

Thus, “one-half month salary” is equivalent to 22.5 days.

Job Contracting

Department Order No. 174 series 2017

DO 174-17 puts an absolute prohibition against labor-only contracting, defined as:
1. An arrangement where:
 a. The contractor does not have substantial capital, or the contractor/subcontractor
does not have substantial investments in the form of tools, machinery, supervision,
etc, and
b. The contractor’s/subcontractor’s employees recruited and placed are performing
activities that are directly related to the main business operation of the principal,
OR
2. An arrangement where the contractor or subcontractor does not exercise the right to control
over the employee.

Dismissal from Employment

Termination by Employee

A. Resignation
General rule: Written notice to resign submitted one (1) month in advance
Exception: No notice required for any of the following:
1. Serious insult by the employer or his representative on the honor and person of the
employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his
representative;
3. Commission of a crime or offense by the employer or his representative against the person
of the employee or any of the immediate members of his family; and
4. Other causes analogous to any of the foregoing.

Termination by Employer

A. Just Causes
An employer may terminate the employment of his/her employees for any of the following just
causes:
1. Serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work;
2. Gross and habitual neglect by the employee of his duties;
3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representative;
4. Commission of a crime or offense by the employee against the person of his employer or
any immediate member of his family or his duly authorized representatives; and
5. Other causes analogous to the foregoing.

Examples of “other causes”:

a) Abandonment
b) Courtesy Resignation
c) Habitual Absenteeism/Tardiness
d) Past Offenses
e) Habitual Infractions
f) Immorality
g) Conviction/Commission of a Crime
B. Authorized Causes
a) Installation of labor saving device – separation pay of 1-month salary or 1-month salary
for every year of service paid.
b) Retrenchment to prevent losses – separation pay of 1-month salary or ½ month salary for
every year of service paid.
c) Redundancy – separation pay of 1-month salary or 1-month salary for every year of service
paid.
d) Closure of Business – separation pay of 1-month salary or ½ month salary for every year
of service paid.

C. Other Causes
1. Disease incurable in 6 months – separation pay of 1-month salary or ½ month salary for
every year of service paid.
2. Enforcement of union security clause in the CBA
3. Dismissal of union officers for the conduct of an illegal strike
4. Dismissal of union members for participating in the commission of illegal acts
5. Termination in conformity with existing statute/ qualification requirements

Requisites for Valid Dismissal

1. Substantive due process: The dismissal must be for any of the causes provided for in the
Labor Code; and
2. Procedural due process: The employee must be afforded an opportunity to be heard and
defend himself.

Degree of Proof: Substantial Evidence

Twin-notice requirement
The employer has the burden of proving that a dismissed worker has been served two notices:
1. First written notice: served on the employee specifying the ground or grounds for
termination and giving said employee reasonable opportunity within which to explain his
side.
2. Second written notice: served upon the employee, indicating that upon due consideration
of all the circumstances, grounds have been established to justify his termination.

Guiding principles in hearing requirement

1. "Ample opportunity to be heard" means any meaningful opportunity (verbal or written)
given to the employee to answer the charges against him and submit evidence in support
of his defense, whether in a hearing, conference or some other fair, just and reasonable
way.
2. A formal hearing or conference becomes mandatory only when requested by the employee
in writing or substantial evidentiary disputes exist or a company rule or practice requires
it, or when similar circumstances justify it.
3. The "ample opportunity to be heard" standard in the Labor Code prevails over the "hearing
or conference" requirement in the implementing rules and regulations.
Employment of Househelpers (Kasambahay Law)
Domestic worker or “Kasambahay” - Refers to any person engaged in domestic work within an
employment relationship such as, but not limited to, the following: general househelp, nursemaid
or “yaya”, cook, gardener, or laundry person.

Rights and Privileges:

a. Minimum wage
b. Standard of treatment: the employer or any member of the household shall not subject a
domestic worker or “kasambahay” to any kind of abuse nor inflict any form of physical
violence or harassment or any act tending to degrade the dignity of a domestic worker.
c. Board, lodging and medical attendance
d. Privacy
e. Access to outside communication
f. Education and training
g. Social system and other benefits (SSS, Philhealth, Pag-IBIG)
h. Leave benefits

Termination:
Grounds:
A. Initiated by Domestic Worker
a. Verbal or emotional abuse of the domestic worker by the employer or any member
of the household;
b. Inhuman treatment including physical abuse of the domestic worker by the
employer or any member of the household;
c. Commission of a crime or offense against the domestic worker by the employer or
any member of the household;
d. Violation by the employer of the terms and conditions of the employment contract
and other standards set forth under this law;
e. Any disease prejudicial to the health of the domestic worker, the employer, or
member/s of the household; and
f. Other causes analogous to the foregoing.

B. Initiated by Employer
a. Misconduct or willful disobedience by the domestic worker of the lawful order of
the employer in connection with the former’s work;
b. Gross or habitual neglect or inefficiency by the domestic worker in the performance
of duties;
c. Fraud or willful breach of the trust reposed by the employer on the domestic
worker;
d. Commission of a crime or offense by the domestic worker against the person of the
employer or any immediate member of the employer’s family;
e. Violation by the domestic worker of the terms and conditions of the employment
contract and other standards set forth under this law;
 f. Any disease prejudicial to the health of the domestic worker, the employer, or
member/s of the household; and
g. Other causes analogous to the foregoing.

Employment of Homeworkers
Industrial homework
1. System of production under which work for an employer or contractor is carried out by a
homeworker at his/her home. Materials may or may not be furnished by the employer or
contractor.
2. Decentralized form of production, where there is ordinarily very little supervision or
regulation of methods of work.

Rights and benefits accorded homeworkers

a. Right to form, join or assist organizations
b. Right to acquire legal personality and the rights and privileges granted by law to legitimate
labor organizations upon issuance of the certification of registration
c. Immediate payment upon employer’s receipt of finished goods or articles
d. SSS, MEDICARE and ECC premium contributions shall be deducted from their pay and
shall be remitted by ER/contractor/subcontractor to the SSS

Liability of Employer
a. Employer may require homeworker to redo work improperly executed without additional
pay
b. Employer need not pay homeworker for any work done on goods or articles not returned
due to homeworker’s fault
c. If subcontractor/contractor fails to pay homeworker, employer is jointly and severally
liable with the former to the homeworker for his/her wage
d. Employer shall assist the homeworkers in the maintenance of basic safe and healthful
working conditions at the homeworkers’ place of work.

Deductions
No deduction from the homeworker’s earnings for the value of materials lost, destroyed or
damaged unless:
1. Homeworker is clearly shown to be responsible for loss or damage
2. There is reasonable opportunity to be heard
3. Amount of deduction is fair and reasonable, and does not exceed actual loss or damage
4. Deduction does not exceed 20% of homeworker’s weekly earnings