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The power of the employer to control the work of the employee is considered the
most significant determinant of the existence of an employer-employee relationship. This
is the control test and is premised on whether the person for whom the services are
performed reserves the right to control both the end achieved and manner and means
used ot achieve that end. It has thus been applied, applying this test, that the pianist is
an employee of a hotel, it appearing that (a) he could not choose the time of his
performance, which the latter had fixed from 7:00 p.m. to 10:00 p.m., three to six times a
week; (b) he could not choose the place of his performance; (c) the manager of the hotel
restaurant required him at certain times to perform only Tagalog songs or music, or to
wear barong Tagalog to conform to the Filipiniana motif; and (d) he was subjected to the
rules on employees’ representation check and chits, a privilege granted to other
employees. (Legend Hotel (Manila) et al vs. Realuyo, G. R. No. 153511, July 18, 2012)
LABOR-ONLY CONTRACTING
The contractor has been ruled to be engaged in labor-only contracting where it had
an authorized capital stock of P400,000.00 and only P25,000.00 of which was paid-up;
this amount was inadequate to maintain its day-to-day operations of its business, i.e., “to
establish, operate and manage a personnel service company which will conduct and
undertake services for the use of offices, stores, commercial and commercial services of
all kinds.” (Superior Packaging Corporation vs. Balagsay et al., G. R. No. 178909,
October 10, 2012)
A multipurpose cooperative (PASAKA) that deployed some of its members as
skilled workers in a company (NORKIS) engaged in the business of vehicles
manufacturing has been held to be a labor-only contractor, it appearing that it had no
substantial capitalization or investment in the form of tools, equipment, machineries, and
work premises, among others; that it did not carry out an independent business from
NORKIS; and that the members, as welders and machine operators, performed activities
directly related to the principal business of NORKIS. (NORKIS Trading Corporation vs.
Buenavista et al., G. R. No. 182018, October 10, 2012)
Labor-only contracting has been found to exist where the actual paid-in capital of
the contractor was only P75,000.00 and it was using the office equipment and materials
owned by the company; the time records of the employees were countersigned by the
officials of the company and no representative of the contractor supervised their work;
and the employees worked only in the company’s offices for a period of five years,
occupying the same position at the same department under the supervision of managerial
employees of the company. (First Philippine Industrial Corporation vs. Calimbas et al.,
G. .R No. 179256, July 22, 2013)
QUITCLAIMS; VALIDITY.
Where the separation pay the two employees each received was deficient by at
least P400,000.00 and thus were given only one-half of the amount they were legally
entitled to, it was ruled that the settlement was not reasonable given their length of service
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- 25 years and 19 years, and considering that they were without jobs and with families to
support and therefore in dire straits when they executed the release/quitclaim affidavits.
(Radio Mindanao Network, Inc. et al vs. Ybarela, Jr. et al., G. R. No. 198662, Sept. 12,
2012)
Not all quitclaims are per se invalid or against public policy, except (1) where there
is clear proof that the waiver was wangled from an unsuspecting or gullible person, or (2)
where the terms of settlement are unconscionable on their face. Thus, the quitclaim
executed by an employee dismissed due to redundancy has been upheld where pursuant
thereto he was paid the following (a) a redundancy premium/separation pay, on top of his
entitlement under the bank’s retirement plan; (b) proportionate 13th month pay; (c) cash
conversion of his outstanding vacation and sick leave credits; and, if applicable, (d) the
return of his Provident Fund contributions; and, (e) cash surrender value of his Insurance.
(Morales vs. Metropolitan Bank and Trust Co., G. R. No. 182475, November 21, 2012)
PROBATIONARY EMPLOYMENT; STANDARDS
Punctuality is a reasonable standard imposed on every employee, whether in
government or private sector. As a matter of fact, habitual tardiness is a serious offense
that may very well constitute gross or habitual neglect of duty, a just cause to dismiss a
regular employee. Assuming that the employee was not apprised of the standards
concomitant to her job, it is but common sense that she must abide by the work hours
imposed by the bank. The rule on reasonable standards made known to the employee
prior to engagement should not be used to exculpate a probationary employee who acts
in a manner contrary to basic knowledge and common sense, in regard to which there is
no need to spell out a policy or standard to be met.
Furthermore, the employer had not been remiss in reminding the employee,
through memoranda, of the standards that should be observed in aspiring for
regularization. (Carvajal vs. Luzon Development Bank et al., G. R. No. 186169, August
1, 2012)
OFW; CONTRACT ALTERATION OR SUBSTITUTION;
PROHIBITED PRACTICE UNDER ARTICLE 34, LABOR CODE.
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OFW; COMPENSABILITY OF ILLNESS
It is not necessary that the nature of the employment be the sole and only reason
for the illness suffered by the seafarer. It is sufficient that there is a reasonable linkage
between the disease suffered by the employee and his work to lead a rational mind to
conclude that his work may have contributed to the establishment or, at the very least,
aggravation of any pre-existing condition he might have had.
It has thus been held that the malignant tumor contracted by the Third Officer of a
crude tanker is compensable although this was not among the injury or illnesses specified
in the Philippine Overseas Employment Agency Standard Employment Contract (POEA-
SEC), considering that under the said contract these illnesses not specifically listed
therein as compensable are disputably presumed as work-related and that he was
frequently exposed to the crude oil that the vessel was carrying and which had hazardous
chemical components that could possibly contribute to the formation of cancerous
masses. (David vs. OSG Shipmanagement Manila, Inc., G. R. No. 197205, September
26, 2012)
OFW; SEAFARER; DEATH; COMPENSABILITY
Under the POEA “Standard Employment Contract Governing the Employment of
All Filipino Seamen On-Board Ocean-Going Vessels (POEA-SEC) no compensation shall
be payable for any injury, incapacity, disability or death resulting from a willful act on his
own life by the seaman as long as the employer can prove that the same is directly
attributable to him. It has thus been ruled that the death of a seaman who jumped into
the sea twice and drowned on the second try is not compensable despite his wife’s claim
that he was suffering from a mental disorder; she did not present any evidence, witness
or medical report to support her claim. (Crewlink, Inc. et al vs. Teringtering et al., G. R.
No. 166803, October 11, 2012)
OFW; SEAFARER’S CLAIM FOR DISABILITY
BENEFITS; DISPUTE RESOLUTION MECHANISM.
Where the seafarer and his employer are covered by a collective bargaining
agreement, the former’s claim for disability benefits must be submitted for resolution by
the grievance and arbitration committees provided for in the CBA, and the failure by a
party or seaman to so refer the dispute to the prescribed dispute resolution mechanism
bars any legal or other action. This is warranted by the clear language of the parties’ CBA
on the matter, and in recognition of the State’s preference for voluntary modes of dispute
settlement. (Ace Navigation Co., Inc. et al vs. Fernandez, G. R. No. 197309, October 10,
2012)
OFW; DISCIPLINARY ACTION; JURISDICTION; APPEAL
Although Republic Act No. 8042, through its Section 10, transferred the original
and exclusive jurisdiction to hear and decide money claims involving overseas Filipino
workers from the POEA to the Labor Arbiters, the law did not remove from the POEA the
original and exclusive jurisdiction to hear and decide all disciplinary action cases and
other special cases administrative in character involving such workers. The obvious
intent of Republic Act No. 8042 was to have the POEA focus its efforts in resolving all
administrative matters affecting and involving such workers. The decision of the POEA
is appealable to the Secretary of Labor and Employment and not to the NLRC. (Eastern
Mediterranean Maritime Ltd. et al. vs. Surio et al., G. R. No. 154213, August 23, 2012)
TRANSFER; VALIDITY
An employer has the right to transfer or assign its employees from one office or
area of operation to another in pursuit of its legitimate business interest, provided there
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is no demotion in rank or diminution of salary, benefits, and other privileges; and the
transfer is not motivated by discrimination or bad faith, or effected as a form of punishment
or demotion without sufficient cause.
While petitioners may claim that their transfer to Manila will cause added expenses
and inconvenience, we agree with the CA that, absent any showing of bad faith or ill
motive on the part of the employer, the transfer remains valid. (Mojar, et al. vs. Agro
Commercial Security Service Agency, Inc. et al., G. R. No. 187188, June 27, 2012)
ARTICLE 100 OF LABOR CODE; WHEN NOT DEEMED VIOLATED.
The term “benefits” used in the non-diminution rule under Article 100 of the Labor
Code refers to monetary benefits or privileges with monetary equivalents. Such benefits
or privileges form part of the employee’s wage or compensation making them enforceable
obligations. It has thus been held that the removal by the employer of the chairs used
while working by its bottling operators for over thirty(30) years is not violative of the non-
diminution rule considering that the benefit is not susceptible of pecuniary estimation.
Furthermore, in exchange for the removal of the chairs, the working time of the operators
was reduced and their break period was increased, and the use of chairs by workers for
long periods while at work is hazardous to one’s health. (Royal Plant Workers Union vs.
Coca-Cola Bottlers Philippines, Inc.-Cebu Plant, G. R. No. 198783, April 15, 2013)
WAGES
The “talent fees” of P400.00 paid to a hotel pianist per three hours of performance
from 7:00 p.m. to 10:00 p.m., three to six nights a week, has been held to be included in
the term “wage” because the same was fixed on the basis of his talent and skill and the
quality of the music he played during the hours of performance each night, taking into
account the prevailing rate for similar talents in the entertainment industry. (Legend Hotel
(Manila) et al vs. Realuyo, G. R. No. 153511, July 18, 2012)
VISITORIAL POWER
In the exercise of the visitorial power under Article 128 of the Labor Code, the
DOLE Secretary can make a determination of the existence of an employer-employee
relationship; such determination is, however, merely preliminary, incidental to the DOLE’s
primary function of enforcing labor standards provisions. The visitorial power would be
rendered nugatory if the alleged employer can by the simple expedient of disputing the
employer-employee relationship force the referral of the matter to the NLRC. (Superior
Packaging Corporation vs. Balagsay et al., G. R. No. 178909, October 10, 2012)
RIGHT TO SELF-ORGANIZATION; CAPATAZES.
Capatazes whose functions consisted of supervising and instructing the miners,
mackers and other rank-and-file workers under them, assessing and evaluating their
performance, making reports and recommending new systems and procedure of work as
well as guidelines for the discipline of employees have been held not to be rank-and-file
employees. They are an extension of the management, and as such they may influence
the rank-and-file workers under them to engage in slowdowns or similar activities
detrimental to policies, interests or business objectives of the employers. (Lepanto
Consolidated Mining Co. vs. The Lepanto Capataz Union, G. R. No. 1507086, February
18, 2013)
COLLECTIVE BARGAINING; PENDENCY OF
PETITION FOR CANCELLATION OF UNION REGISTRATION.
The pendency of petition for the cancellation of the registration of the bargaining
agent does not preclude collective bargaining. The majority status of the bargaining agent
is not affected by the pendency of the petition for cancellation. (Digital
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Telecommunications Philippines, Inc. vs. Digitel Employees Union et al., G. R. Nos.
184903-04, October 10, 2012)
LEAVE; WHEN NOT DEEMED A STRIKE
The leave taken by five(5) employees on the birthday of the company president
cannot be deemed a strike considering that they went on leave for various reasons and
were in different places to attend to their personal needs or affairs; that they did not even
go to the premises of the company to petition the latter for redress of their grievances;
and that to demonstrate their good faith, they reported for work in the afternoon when
they received text messages asking them to do so. There was therefore no “concerted”
or “mutually contrived or planned” action “performed in unison” There was not even any
indication that the leave taken by five(5) employees paralyzed the company operation on
that day” as alleged by the company. (Naranjo et al vs. Biomedica Health Care, Inc. et
al., G. R. No. 193789, September 19, 2012)
UNFAIR LABOR PRACTICE
The employer’s suspension of collective bargaining negotiations with the union and
placing the union funds in escrow in view of an intra-union dispute between two factions
have been held to constitute unfair labor practice, it appearing that the intra-union dispute
had already been finally settled. (De la Salle University vs. De la Salle University
Employees Association, G. R. No. 169254, August 23, 2012)
The closure of the company despite the existence of an assumption order over a
labor dispute occasioned by its reluctance to negotiate with the union, coupled with the
creation of a new corporation performing similar functions, leaves no iota of doubt that
the closure was to defeat the security of tenure of the union-member employees and
interfere with, restrain or coerce them in the exercise of their right to self-organization.
(Digital Telecommunications Philippines, Inc. vs. Digitel Employees Union et al., G. R.
Nos. 184903-04, October 10, 2012)
CONSTRUCTIVE DISMISSAL
Verbal abuse committed against a bus driver by a co-employee cannot warrant a
claim for constructive dismissal of the former, mot especially where the latter is not vested
with the authority to dismiss, and as a matter of fact the company had repeatedly urged
the driver to report for work. (Verdadero vs. Barney Autolines Group of Companies
Transport, Inc. et al., G. R. No. 195428, August 29, 2012)
CONSTRUCTIVE DISMISSAL
The reassignment of a college dean as a professor in another college in the
university has been held not to be a constructive dismissal, considering that her term as
college dean had expired and hence no demotion had occurred. (Barba vs. Liceo de
Cagayan University, G. R. No. 193857, November 28, 2012)
SECURITY GUARDS; “FLOATING STATUS.”
Temporary “off-detail” or “floating status” is the period of time when security guards
are in between assignments or when they are made to wait after being relieved from a
previous post until they are transferred to a new one. It takes place when, for instance,
the security agency’s clients decide not to renew their contracts with the agency, resulting
in a situation where the available posts under its existing contracts are less than the
number of guards in its roster. For as long as such temporary inactivity does not continue
for a period exceeding six months, it has been ruled that placing an employee on
temporary “off-detail” or “floating status” is not equivalent to dismissal. (Leopard Security
and Investigation Agency vs. Quitoy et al., G. R. No. 186344, February 20, 2013) On the
other hand, where the guards were placed on floating status for a period exceeding six(6)
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months, it was ruled that they were constructively dismissed. (Venancio S. Reyes et al.
vs. RP Guardians Security Agency, Inc., G. R. No. 193756, April 10, 2013)
DISMISSAL; LOSS OF TRUST AND CONFIDENCE
Villanueva worked for Meralco as a Branch Representative whose tasks included
the issuance of Contracts for Electric Service after receipt of the amount due for service
connection from customers. Obviously, he was entrusted not only with the responsibility
of handling company funds but also to cater to customers who intended to avail of
Meralco’s services. This is nothing but an indication that trust and confidence were
reposed in him by the company, although his position was not strictly managerial by
nature. Loss of confidence generally applies only to: (1) cases involving employees
occupying positions of trust and confidence; or (2) situations where the employee is
routinely charged with the care and custody of the employer’s money or property. To the
first class belong managerial employees, that is, those vested with the powers and
prerogatives to lay down management policies and/or to hire, transfer, suspend, lay-off,
recall, discharge, assign or discipline employees, or effectively recommend such
managerial actions. To the second class belong cashiers, auditors, property custodians,
or those who, in the normal and routine exercise of heir functions, regularly handle
significant amounts of money or property. Villanueva falls in the latter category.
(Villanueva, Jr. vs. The National Labor Relations Commission et al., G. R. No. 176893,
June 13, 2012)
DISMISSAL OF MANAGERIAL EMPLOYEES; LOSS OF TRUST AND CONFIDENCE.
The mere existence of a basis for the loss of trust and confidence justifies the
dismissal of the managerial employee because when an employee accepts a promotion
to a managerial position or to an office requiring full trust and confidence, such employee
gives up some of the rigid guaranties available to ordinary workers. Infractions, which if
committed by others would be overlooked or condoned or penalties mitigated, may be
visited with more severe disciplinary action. Proof beyond reasonable doubt is not
required provided there is a valid reason for the loss of trust and confidence, such as
when the employer has a reasonable ground to believe that the managerial employee
concerned is responsible for the purported misconduct and the nature of his participation
renders him unworthy of the trust and confidence demanded by his position.
However, the right of the management to dismiss must be balanced against the
managerial employee’s right to security of tenure which is not one of the guaranties he
gives up. It has been consistently ruled that managerial employees enjoy security of
tenure and, although the standards for their dismissal are less stringent, the loss of trust
and confidence must be substantial and founded on clearly established facts sufficient to
warrant the managerial employee’s separation from the company. Substantial evidence
is of critical importance and the burden rests on the employer to prove it. (Manese et al.
vs. Jollibee Foods Corp., et al., G. R. No. 170454, October 11, 2012)
DISMISSAL; WILFUL DISOBEDIENCE
Willful disobedience of an employee contemplates the concurrence of at least two
requisites: the employee’s assailed conduct must have been willful or intentional, the
willfulness being characterized by a “wrongful and perverse attitude”; and the order
violated must have been reasonable, lawful and made known to the employee, and must
pertain to the duties which he had been engaged to discharge.
The repeated violation by a procurement officer of the company’s Procurement
Manuals, within a period of one-a-half years have been held to indicate a willful
disobedience to reasonable company and regulations in relation to his work and thus a
valid ground for dismissal despite the approval by his action his superiors. (Mirant (Phils.)
Corporation vs. Sario, G. R. No. 197598, November 21, 2012)
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REDUNDANCY
In implementing a redundancy program, the employer is required to adopt a fair
and reasonable criteria, taking into consideration such factors as (a) preferred status; (b)
efficiency, and (c) seniority, among others. The selection for dismissal due to redundancy
of a bank employee who had no permanent place of assignment and merely acted as a
reliever, had poor work performance, and absented himself on days when there were
expected heavy volume of work, has thus been uphold. (Morales vs. Metropolitan Bank
and Trust Co., G. R. No. 182475, November 21, 2012)
The employer cannot simply declare redundancy without basis. To exhibit its good
faith and to show that there was a fair and reasonable in criteria in ascertaining redundant
positions, a company claiming to be over manned must produce adequate proof of the
same, including, but not limited to, the new staffing pattern, feasibility studies/proposal,
on the viability of the newly created positions, job description and the approval by the
management of the restructuring. It has thus been held that the company failed to show
that there was valid dismissal due to redundancy where it presented as evidence only its
letter of termination addressed to the employee, the termination report to the DOLE, the
checks issued in the employee’s name, and the list of dismissed employees. (General
Milling Corporation vs. Viajan, G. R. No. 181738, January 30, 2013)
DISMISSALS; HEARING REQUIREMENT
The existence of an actual, formal “trial type” hearing although preferred is not
absolutely necessary to satisfy the employee’s right to be heard. And in connection with
the two (2) written notices to be sent to the employee, the law does not require that an
intention to terminate his employment be included in the first notice; this is only required
in the second notice.
The guiding principles in connection with the hearing requirement in dismissal
cases are:
a) “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.
b) 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.
c) the “ample opportunity to be heard” standard in the Labor Code prevails over
the “hearing or conference” requirement in the implementing rules and regulations.
(Esguerra vs. Valle Verde Country Club, Inc. et al., G. R. No. 173012, June 13, 2012)
NOTICE OF TERMINATION; SUFFICIENCY.
Where the employees were charged with illegal strike but the notice to explain (a)
did not specify the exact acts that the company considered as illegal strike or violative of
company policy; (b) failed to quote the provisions of the company policy which the
employees purportedly violated and of which they had been duly informed at the time of
their employment; and (c) allotted to them only twenty-four (24) hours from receipt thereof
within which to answer it; it was ruled that the notice was severely deficient and in violation
of Article 277 of the Labor Code. (Naranjo et al vs. Biomedica Health Care, Inc. et al., G.
R. No. 193789, September 19, 2012)
DISMISSAL; SEPARATION PAY IN THE EVENT OF CLOSURE.
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Where the cessation of the employer’s business was not directly brought about by
serious business losses or financial reverses but by reason of the enforcement of a
judgment against it, it was ruled that the employer should be required to pay separation
pay to the affected employees. (Ever Electrical Manufacturing, Inc. (EEMI) et al vs.
Samahang Manggagawa ng Ever Electrical/NAMAWU Local 224 represented by Felimon
Panganiban, G. R. No. 194795, June 13, 2012)
REINSTATEMENT
Article 223 of the Labor Code provides that in case there is an order of
reinstatement, the employer must admit the dismissed employee under the same terms
and conditions, or merely reinstate the employee in the payroll. The order shall be
immediately executory; Thus, the employer cannot escape liability by simply invoking
that the employee did not report for work. The law states that the employer must still
reinstate the employee in the payroll. Where reinstatement is no longer viable as an
option, separation pay equivalent to one(1) month salary for every ear of service could be
awarded as an alternative. (3rd Alert Security and Detective Services, Inc. vs. Romualdo
Navia, G. R. No. 200653, June 13, 2012)
REINSTATEMENT IN THE PAYROLL; WHEN PROPER.-
Pending appeal, reinstatement in the payroll, and not physical restoration of the
employees to their former positions, would be proper where they have accused the
employer of being directly complicit in the plot to expel them from the union and to
terminate their employment, while the employer has charged the employees with trying
to sabotage the peace of the workplace in “furthering their dispute with the union.” The
resentment and enmity between the parties have so strained their relationship and even
provoked antipathy and antagonism, as amply borne out by the physical clashes that had
ensured every time the employees attempted to enter the employer’s compound; the
former’s presence in the workplace will not only be distracting but even disruptive. (Radio
Philippines Network, Inc., et al. vs. Yap et al., G. R. No. 187713, August 1, 2012)
SEPARATION PAY IN LIEU OF REINSTATEMENT
Where the company president uttered harsh, degrading and bad words at the
workers at the time they were denied entry to the company premises, and their dismissal
was effected in a swift fashion and in gross violation of their right to due process thus
indicating that they were no longer wanted in the company, coupled with their filing a
complaint with the DOLE, revealing a relationship governed by antipathy and antagonism,
it was held that payment of separation pay in lieu of reinstatement is warranted based on
strained relations. (Naranjo et al vs. Biomedica Health Care, Inc. et al., G. R. No. 193789,
September 19, 2012).
Under the doctrine of strained relations, the payment of separation pay is
considered an acceptable alternative to reinstatement when the latter option is no longer
desirable or viable. On one hand, such payment liberates the employee from what could
be a highly oppressive work environment. On the other hand, it releases the employer
from the grossly unpalatable obligation of maintaining in its employ a worker it could no
longer trust. Moreover, the doctrine of strained relations has been made applicable to
cases where the employee decides not to be reinstated and demands for separation pay.
(Apo Chemical Mfg. Corporation et al vs. Bides, G. R. No. 186002, September 19, 2012)
8
or some moral obliquity and conscious doing of wrong; it means breach of a known duty
through some motive or interest or ill will; it partakes of the nature of fraud.
Where there is no evidence that the president of the corporation acted maliciously
or in bad faith in handling the business affairs of the corporation and in eventually
implementing the closure of its business, he cannot be held jointly and solidarily liable
with the latter. (Ever Electrical Manufacturing, Inc. (EEMI) et al. vs. Samahang
Manggagawa ng Ever Electrical/NAMAWU Local 224 represented by Felimon
Panganiban, G. R. No. 194795, June 13, 2012)
The mere lack of authorized or just cause for dismissal and the failure to observe
due process do not ipso facto mean that the corporate officer acted with malice or bad in
terminating the worker’s employment and therefor jointly and severally liable with the
corporation for the payment of the latter’s monetary awards. There must be independent
proof of malice and bad faith. By legal fiction, the corporation has a personality separate
and distinct from its officers, stockholders and members. (The New Philippine
Skylanders, Inc. et al vs. Dakila, G. R. No. 199547, September 24, 2012)
APPEALS
The employer who has not appealed the decision of the Labor Arbiter declaring
the employee’s dismissal illegal is precluded from questioning this finding before the
NLRC despite the fact that it filed an opposition to the partial appeal filed by the employee
and even sought therein the reversal of the Labor Arbiter’s finding of illegal dismissal,
considering that employee’s appeal was limited to the issues of reinstatement and
backwages. It is well-settled that an appellee who has not himself appealed cannot obtain
on appeal any affirmative relief other than those granted in the appealed decision.
(Manese et al vs. Jollibee Foods Corporation et al., G. R. No. 170454, October 11, 2012)
BELATED FILING OF APPEAL; WHEN NOT EXCUSED.
Where the belated filing of the worker’s appeal before the NLRC was due to the
fault of her counsel, it was ruled that the same cannot be overlooked despite the
importance of the issue raised, i.e. whether she was illegally dismissed and had been
afforded ample opportunity to be heard, considering that neither she nor her counsel gave
any explanation or reason citing extraordinary circumstances for the lawyer’s failure to
abide by the rules for filing an appeal. It is an oft-repeated ruling that the negligence and
mistakes of counsel bind the client. A departure from this rule would bring about never-
ending suits, so long as lawyers could allege their own fault or negligence to support the
client’s case and obtain remedies and reliefs already lost by the operation of law. The
only exception would be where the lawyer’s gross negligence would result in the grave
injustice of depriving his client of the due process of law. In this case, there was no such
deprivation of due process. The worker was able to fully present and argue her case
before the Labor Arbiter. She was accorded the opportunity to be heard. Her failure to
appeal the Labor Arbiter’s Decision cannot, therefore, be deemed as a deprivation of her
right to due process. (Building Care Corp. et al. vs. Macaraeg, G. R. No. 198357,
December 10, 2012)
CIVIL DISPUTE
The Labor Arbiter cannot order that the employee’s unpaid balance on her car loan
cannot be set off against the monetary benefits due her. The employer’s demand for
payment of the employee’s amortization on her car loan, or in the alternative, the return
of the car to the former, is not a labor, but a civil dispute. It involves debtor-creditor
relations, rather than employer-employee relations. (Manese et al., G. R. No. 170454,
October 11, 2012)
AWARD OF DAMAGES
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The award of moral and exemplary damages has been held to be proper where it
was established that even prior to the date of termination, the employee was already
barred from entering the company premises, deprived access to her office computer,
excluded from the bundy clock, and was made to sign documents in the guise of payment
of her separation pay; that a number of new employees were hired and even assigned to
her former department, and that she suffered mental torture because the cause of her
dismissal was not clear and substantiated. (General Milling Corporation vs. Viajan, G. R.
No. 181738, January 30, 2013)
CERTIORARI
The review of labor cases is confined to questions of jurisdiction or grave abuse of
discretion. The alleged absence of employer-employee relationship cannot be raised for
the first time on appeal. The resolution of this issue requires the admission and calibration
of evidence and the LA and the NLRC did not pass upon it in their decisions. We cannot
permit petitioner to change its theory on appeal. It would be unfair to the adverse party
who would have no more opportunity to present further evidence, material to the new
theory, which it could have done had it been aware earlier of the new theory before the
LA and the NLRC. (Duty Free Philippines Services, Inc., vs. Manolito Q. Tria, G. R. No.
174809, June 27, 2012)
EMPLOYER’S BURDEN OF PROOF IN ILLEGAL DISMISSALS; WHEN NOT
APPLICABLE.-
The rule that the employer bears the burden of proof in illegal dismissal cases finds
no application when the employer denies having dismissed the employee. The employee
must first establish by substantial evidence the fact of dismissal, before shifting to the
employer the burden of proving the validity of such dismissal. (Grand Asian Shipping
Lines, Inc. et al vs. Galvez et al., G. R. No. 178184, January 29, 2014)
Labor tribunals, such as the NLRC, are not precluded from receiving evidence
submitted on appeal as technical rules are not binding in cases submitted before them.
In fact, labor officials should use every and reasonable means to ascertain the facts in
each case speedily and objectively, without regard to technicalities of law or procedure,
all in the interest of due process. Thus, it has been ruled that the NLRC could admit
documents submitted to it on appeal to prove the serious misconduct and habitual neglect
of duty committed by the employer. (Surigao del Norte Electric Cooperatives, Inc. et al
vs. Gonzaga, G. R. No. 187722, June 10, 2013)
The Voluntary Arbitrator has jurisdiction to pass upon the legality of the employee’s
dismissal notwithstanding the fact that according to the parties’ submission Agreement
the issue was mainly whether or not the employee was entitled to separation pay and the
sales commission reserved for him by the company. This is because the issue of
separation pay emanates from the employee’s allegation of illegal dismissal. The
Voluntary Arbitrator has plenary jurisdiction and authority to interpret an agreement to
arbitrate and to determine the scope of his own authority when the agreement is vague,
subject only, in proper cases, to the certiorari jurisdiction of the Court. (7 K Corporations
vs. Albarico, G. R. No. 182295, June 26, 2013)
PROJECT EMPLOYMENT
Where the appointment letter showed that the employee was hired as a transit
mixer driver for the batching plant project for the period from June, 2000 until June, 2001;
10
that it was provided therein that he was a project employee whose employment was co-
terminus with the completion of the project or any phase thereof; and that after the
completion of the project or phase thereof, he was free to seek other employment of his
choice; it was ruled that the driver was a project employee there being no showing that
he signed the appointment letter under duress, or that the period fixed therein was
imposed to preclude acquisition of tenurial security by the employee; it was ruled that the
driver was a project employee. It was further ruled that where he was dismissed without
a valid or just cause prior to the expiration of the duration of employment, he would be
only entitled to the wages corresponding to the unexpired portion of his employment but
not to reinstatement considering that the project to which he was assigned was already
completed. (Concrete Solutions, Inc. etc. vs. Cabusas, G. R. No. 177812, June 19, 2013)
The rule that only questions of law may be raised in a petition brought under Rule 45 of
the Rules of Court is not without exception. Factual review may warrant when the factual findings
of the NLRC are contrary to those of the Labor Arbiter and the CA; or when the CA’s findings of
fact, supposedly premised on the absence of evidence, are contradicted by evidence on record.
In this case, the Labor Arbiter and the CA found no just cause to warrant the dismissal of
respondent. The NLRC, however, found otherwise. A factual review is, therefore, in order. (Apo
Cement Corporation vs. Baptisma, G. R. No. 176671, June 20, 2012)
TRANSFERS; GUIDELINES
11
Loss of confidence applies to: (1) employees occupying positions of trust and
confidence, the managerial employees; and (2) employees who are routinely charged
with the care and custody of the employer’s money or property which may include rank-
and-file employees. Examples of rank-and-file employees who may be dismissed for
loss of confidence are cashiers, auditors, property custodians, or those who, in the normal
routine exercise of their functions, regularly handle significant amounts of money or
property. (Century Iron Works, Inc. vs. Bañas, G. R. No. 184116, June 19, 2013)
As a general rule, an employee who has been dismissed for any of the just causes
enumerated under Article 282 of the Labor Code is not entitled to a separation pay.
In exceptional cases, however, the Court has granted separation pay to a legally
dismissed employee as an act of "social justice" or on "equitable grounds." In both
instances, it is required that the dismissal (1) was not for serious misconduct; and (2) did
not reflect on the moral character of the employee. In the subsequent case of Toyota
Motor Philippines Corporation Workers Association (TMPCWA) v. National Labor
Relations Commission, (2007) it was further elucidated that "in addition to serious
misconduct, in dismissals based on other grounds under Art. 282 like willful disobedience,
gross and habitual neglect of duty, fraud or willful breach of trust, and commission of a
crime against the employer or his family, separation pay should not be conceded to the
dismissed employee.
Consequently, where the executive was dismissed from work because she
intentionally circumvented a strict company policy, manipulated another entity to carry out
her instructions without the company’s knowledge and approval, and directed the
diversion of funds, which she even admitted doing under the guise of shortening the
laborious process of securing funds for promotional activities from the head office. These
transgressions were serious offenses that warranted her dismissal from employment and
proved that her termination from work was for a just cause. Hence, she is not entitled to
a separation pay. (Unilever Philippines, Inc. vs. Rivera, G. R. No. 201701, June 2, 2013)
The ship captain is considered a managerial employee since his duties involve the
governance, care and management of the vessel. The chief engineer is also a managerial
employee for he is tasked to take complete charge of the technical operations of the
vessel. As captain and as chief engineer, they perform functions vested with authority to
execute management policies and thereby hold positions of responsibility over the
activities in the vessel. Indeed, their position requires the full trust and confidence of their
employer for they are entrusted with the custody, handling and care of company property
and exercise authority over it. (Grand Asian Shipping Lines, Inc. et al vs. Galvez et al., G.
R. No. 178184, January 29, 2014)
12
captain. (Grand Asian Shipping Lines, Inc. et al vs. Galvez et al., G. R. No. 178184,
January 29, 2014)
ooOoo
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand
twelve.
13
AN ACT INSTITUTING POLICIES FOR THE PROTECTION
AND WELFARE OF DOMESTIC WORKERS
ARTICLE I
GENERAL PROVISIONS
SECTION 1. Short Title. – This Act shall be known as the “Domestic Workers Act” or
“Batas Kasambahay”.
(a) The State strongly affirms labor as a primary social force and is committed to respect,
promote, protect and realize the fundamental principles and rights at work including, but
not limited to, abolition of child labor, elimination of all forms of forced labor, discrimination
in employment and occupation, and trafficking in persons, especially women and children;
(b) The State adheres to internationally accepted working conditions for workers in
general, and establishes labor standards for domestic workers in particular, towards
decent employment and income, enhanced coverage of social protection, respect for
human rights and strengthened social dialogue;
(c) The State recognizes the need to protect the rights of domestic workers against abuse,
harassment, violence, economic exploitation and performance of work that is hazardous
to their physical and mental health; and
(d) The State, in protecting domestic workers and recognizing their special needs to
ensure safe and healthful working conditions, promotes gender-sensitive measures in the
formulation and implementation of policies and programs affecting the local domestic
work.
SEC. 3. Coverage. – This Act applies to all domestic workers employed and working
within the country.
(a) Debt bondage refers to the rendering of service by the domestic worker as security or
payment for a debt where the length and nature of service is not clearly defined or when
the value of the service is not reasonably applied in the payment of the debt.
(b) Deployment expenses refers to expenses that are directly used for the transfer of the
domestic worker from place of origin to the place of work covering the cost of
transportation. Advances or loans by the domestic worker are not included in the definition
of deployment expenses.
(d) 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, but shall exclude any
person who performs domestic work only occasionally or sporadically and not on an
occupational basis.
14
The term shall not include children who are under foster family arrangement, and are
provided access to education and given an allowance incidental to education, i.e. “baon”,
transportation, school projects and school activities.
(e) Employer refers to any person who engages and controls the services of a domestic
worker and is party to the employment contract.
(f) Household refers to the immediate members of the family or the occupants of the
house that are directly provided services by the domestic worker.
(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership,
corporation or entity licensed to engage in the recruitment and placement of domestic
workers for local employment.
(h) Working children, as used under this Act, refers to domestic workers who are fifteen
(15) years old and above but below eighteen (18) years old.
ARTICLE II
SEC. 5. 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.
SEC. 6. Board, Lodging and Medical Attendance. – The employer shall provide for the
basic necessities of the domestic worker to include at least three (3) adequate meals a
day and humane sleeping arrangements that ensure safety.
The employer shall provide appropriate rest and assistance to the domestic worker in
case of illnesses and injuries sustained during service without loss of benefits.
At no instance shall the employer withdraw or hold in abeyance the provision of these
basic necessities as punishment or disciplinary action to the domestic worker.
SEC. 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be
guaranteed at all times and shall extend to all forms of communication and personal
effects. This guarantee equally recognizes that the domestic worker is obliged to render
satisfactory service at all times.
SEC. 8. Access to Outside Communication. – The employer shall grant the domestic
worker access to outside communication during free time:Provided, That in case of
emergency, access to communication shall be granted even during work time. Should the
domestic worker make use of the employer’s telephone or other communication facilities,
the costs shall be borne by the domestic worker, unless such charges are waived by the
employer.
SEC. 9. Right to Education and Training. – The employer shall afford the domestic worker
the opportunity to finish basic education and may allow access to alternative learning
systems and, as far as practicable, higher education or technical and vocational training.
The employer shall adjust the work schedule of the domestic worker to allow such access
to education or training without hampering the services required by the employer.
15
SEC. 10. Prohibition Against Privileged Information. – All communication and information
pertaining to the employer or members of the household shall be treated as privileged
and confidential, and shall not be publicly disclosed by the domestic worker during and
after employment. Such privileged information shall be inadmissible in evidence except
when the suit involves the employer or any member of the household in a crime against
persons, property, personal liberty and security, and chastity.
ARTICLE III
PRE-EMPLOYMENT
The Department of Labor and Employment (DOLE) shall develop a model employment
contract for domestic workers which shall, at all times, be made available free of charge
to domestic workers, employers, representative organizations and the general public. The
DOLE shall widely disseminate information to domestic workers and employers on the
use of such model employment contract.
In cases where the employment of the domestic worker is facilitated through a private
employment agency, the PEA shall keep a copy of all employment contracts of domestic
workers and shall be made available for verification and inspection by the DOLE.
(a) Medical certificate or a health certificate issued by a local government health officer;
(d) Duly authenticated birth certificate or if not available, any other document showing the
age of the domestic worker such as voter’s identification card, baptismal record or
passport.
However, Section 12(a), (b), (c) and (d) shall be standard requirements when the
employment of the domestic worker is facilitated through the PEA.
16
The cost of the foregoing shall be borne by the prospective employer or agency, as the
case may be.
SEC. 13. Recruitment and Finder’s Fees. – Regardless of whether the domestic worker
was hired through a private employment agency or a third party, no share in the
recruitment or finder’s fees shall be charged against the domestic worker by the said
private employment agency or third party.
SEC. 14. Deposits for Loss or Damage. – It shall be unlawful for the employer or any
other person to require a domestic worker to make deposits from which deductions shall
be made for the reimbursement of loss or damage to tools, materials, furniture and
equipment in the household.
SEC. 15. Prohibition on Debt Bondage. – It shall be unlawful for the employer or any
person acting on behalf of the employer to place the domestic worker under debt
bondage.
SEC. 16. Employment Age of Domestic Workers. – It shall be unlawful to employ any
person below fifteen (15) years of age as a domestic worker. Employment of working
children, as defined under this Act, shall be subject to the provisionsof Section 10(A),
paragraph 2 of Section 12-A, paragraph 4 of Section 12-D, and Section 13 of Republic
Act No. 7610, as amended, otherwise known as the “Special Protection of Children
Against Child Abuse, Exploitation and Discrimination Act”.
Working children shall be entitled to minimum wage, and all benefits provided under this
Act.
Any employer who has been sentenced by a court of law of any offense against a working
child under this Act shall be meted out with a penalty one degree higher and shall be
prohibited from hiring a working child.
SEC. 17. Employer’s Reportorial Duties. – The employers shall register all domestic
workers under their employment in the Registry of Domestic Workers in the barangay
where the employer’s residence is located. The Department of the Interior and Local
Government (DILG) shall, in coordination with the DOLE, formulate a registration system
for this purpose.
SEC. 18. Skills Training, Assessment and Certification. – To ensure productivity and
assure quality services, the DOLE, through the Technical Education and Skills
Development Authority (TESDA), shall facilitate access of domestic workers to efficient
training, assessment and certification based on a duly promulgated training regulation.
ARTICLE IV
SEC. 19. Health and Safety. – The employer shall safeguard the health and safety of the
domestic worker in accordance with laws, rules and regulations, with due consideration
of the peculiar nature of domestic work.
SEC. 20. Daily Rest Period. – The domestic worker shall be entitled to an aggregate daily
rest period of eight (8) hours per day.
SEC. 21. Weekly Rest Period. – The domestic worker shall be entitled to at least twenty-
four (24) consecutive hours of rest in a week. The employer and the domestic worker
17
shall agree in writing on the schedule of the weekly rest day of the domestic
worker: Provided, That the employer shall respect the preference of the domestic worker
as to the weekly rest day when such preference is based on religious grounds. Nothing
in this provision shall deprive the domestic worker and the employer from agreeing to the
following:
(a) Offsetting a day of absence with a particular rest day;
(b) Waiving a particular rest day in return for an equivalent daily rate of pay;
(c) Accumulating rest days not exceeding five (5) days; or
(d) Other similar arrangements.
SEC. 23. Extent of Duty. – The domestic worker and the employer may mutually agree
for the former to temporarily perform a task that is outside the latter’s household for the
benefit of another household. However, any liability that will be incurred by the domestic
worker on account of such arrangement shall be borne by the original employer. In
addition, such work performed outside the household shall entitle the domestic worker to
an additional payment of not less than the existing minimum wage rate of a domestic
worker. It shall be unlawful for the original employer to charge any amount from the said
household where the service of the domestic worker was temporarily performed.
SEC 24. Minimum Wage. – The minimum wage of domestic workers shall not be less
than the following:
(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the
National Capital Region (NCR);
(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and
first class municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other
municipalities.
After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional
Tripartite and Productivity Wage Boards (RTPWBs) shall review, and if proper, determine
and adjust the minimum wage rates of domestic workers.
SEC 25. Payment of Wages. – Payment of wages shall be made on time directly to the
domestic worker to whom they are due in cash at least once a month. The employer,
unless allowed by the domestic worker through a written consent, shall make no
deductions from the wages other than that which is mandated by law. No employer shall
pay the wages of a domestic worker by means of promissory notes, vouchers, coupons,
tokens, tickets, chits, or any object other than the cash wage as provided for under this
Act.
The domestic worker is entitled to a thirteenth month pay as provided for by law.
SEC. 26. Pay Slip. – The employer shall at all times provide the domestic worker with a
copy of the pay slip containing the amount paid in cash every pay day, and indicating all
18
deductions made, if any. The copies of the pay slip shall be kept by the employer for a
period of three (3) years.
SEC. 27. Prohibition on Interference in the Disposal of Wages. – It shall be unlawful for
the employer to interfere with the freedom of any domestic worker to dispose of the latter’s
wages. The employer shall not force, compel or oblige the domestic worker to purchase
merchandise, commodities or other properties from the employer or from any other
person, or otherwise make use of any store or services of such employer or any other
person.
SEC 28. Prohibition Against Withholding of Wages. – It shall be unlawful for an employer,
directly or indirectly, to withhold the wages of the domestic worker. If the domestic worker
leaves without any justifiable reason, any unpaid salary for a period not exceeding fifteen
(15) days shall be forfeited. Likewise, the employer shall not induce the domestic worker
to give up any part of the wages by force, stealth, intimidation, threat or by any other
means whatsoever.
SEC. 29. Leave Benefits. – A domestic worker who has rendered at least one (1) year of
service shall be entitled to an annual service incentive leave of five (5) days with
pay: Provided, That any unused portion of said annual leave shall not be cumulative or
carried over to the succeeding years. Unused leaves shall not be convertible to cash.
SEC. 30. Social and Other Benefits. – A domestic worker who has rendered at least one
(1) month of service shall be covered by the Social Security System (SSS), the Philippine
Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or
Pag-IBIG, and shall be entitled to all the benefits in accordance with the pertinent
provisions provided by law.
The domestic worker shall be entitled to all other benefits under existing laws.
SEC. 31. Rescue and Rehabilitation of Abused Domestic Workers. – Any abused or
exploited domestic worker shall be immediately rescued by a municipal or city social
welfare officer or a social welfare officer from the Department of Social Welfare and
Development (DSWD) in coordination with the concerned barangay officials. The DSWD
and the DILG shall develop a standard operating procedure for the rescue and
rehabilitation of abused domestic workers, and in coordination with the DOLE, for possible
subsequent job placement.
ARTICLE V
POST EMPLOYMENT
SEC. 32. Termination of Service. – Neither the domestic worker nor the employer may
terminate the contract before the expiration of the term except for grounds provided for in
Sections 33 and 34 of this Act. If the domestic worker is unjustly dismissed, the domestic
worker shall be paid the compensation already earned plus the equivalent of fifteen (15)
days work by way of indemnity. If the domestic worker leaves without justifiable reason,
any unpaid salary due not exceeding the equivalent fifteen (15) days work shall be
19
forfeited. In addition, the employer may recover from the domestic worker costs incurred
related to the deployment expenses, if any: Provided, That the service has been
terminated within six (6) months from the domestic worker’s employment.
If the duration of the domestic service is not determined either in stipulation or by the
nature of the service, the employer or the domestic worker may give notice to end the
working relationship five (5) days before the intended termination of the service.
The domestic worker and the employer may mutually agree upon written notice to pre-
terminate the contract of employment to end the employment relationship.
SEC. 33. Termination Initiated by the Domestic Worker. – The domestic worker may
terminate the employment relationship at any time before the expiration of the contract
for any of the following causes:
(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
SEC. 34. Termination Initiated by the Employer. – An employer may terminate the
services of the domestic worker at any time before the expiration of the contract, for any
of the following causes:
(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
20
SEC. 35. Employment Certification. – Upon the severance of the employment
relationship, the employer shall issue the domestic worker within five (5) days from
request a certificate of employment indicating the nature, duration of the service and work
performance.
ARTICLE VI
SEC. 36. Regulation of Private Employment Agencies (PEAs). – The DOLE shall, through
a system of licensing and regulation, ensure the protection of domestic workers hired
through the PEAs.
The PEA shall be jointly and severally liable with the employer for all the wages, wage-
related benefits, and other benefits due a domestic worker.
The provision of Presidential Decree No. 442, as amended, otherwise known as the
“Labor Code of the Philippines”, on qualifications of the PEAs with regard to nationality,
networth, owners and officers, office space and other requirements, as well as
nontransferability of license and commission of prohibited practices, shall apply.
(a) Ensure that domestic workers are not charged or levied any recruitment or placement
fees;
(b) Ensure that the employment agreement between the domestic worker and the
employer stipulates the terms and conditions of employment and all the benefits
prescribed by this Act;
(c) Provide a pre-employment orientation briefing to the domestic worker and the
employer about their rights and responsibilities in accordance with this Act;
(e) Assist domestic workers with respect to complaints or grievances against their
employers; and
ARTICLE VII
SETTLEMENT OF DISPUTES
SEC. 37. Mechanism for Settlement of Disputes. – All labor-related disputes shall be
elevated to the DOLE Regional Office having jurisdiction over the workplace without
prejudice to the filing of a civil or criminal action in appropriate cases. The DOLE Regional
Office shall exhaust all conciliation and mediation efforts before a decision shall be
rendered.
Ordinary crimes or offenses committed under the Revised Penal Code and other special
penal laws by either party shall be filed with the regular courts.
21
ARTICLE VIII
SPECIAL PROVISIONS
SEC. 38. Information Program. – The DOLE shall, in coordination with the DILG, the SSS,
the PhilHealth and Pag-IBIG develop and implement a continuous information
dissemination program on the provisions of this Act, both at the national and local level,
immediately after the enactment of this law.
SEC. 39. “Araw Ng Mga Kasambahay”. – The date upon which the President shall
approve this “Domestic Workers Act” shall be designated as the “Araw ng mga
Kasambahay”.
ARTICLE IX
SEC. 40. Penalty. – Any violation of the provisions of this Act declared unlawful shall be
punishable with a fine of not less than Ten thousand pesos (P10,000.00) but not more
than Forty thousand pesos (P40,000.00) without prejudice to the filing of appropriate civil
or criminal action by the aggrieved party.
SEC. 42. Implementing Rules and Regulations. – Within ninety (90) days from the
effectivity of this Act, the Secretary of Labor and Employment, the Secretary of Social
Welfare and Development, the Secretary of the Interior and Local Government, and the
Director General of the Philippine National Police, in coordination with other concerned
government agencies and accredited nongovernment organizations (NGOs) assisting
domestic workers, shall promulgate the necessary rules and regulations for the effective
implementation of this Act.
ARTICLE X
FINAL PROVISIONS
SEC. 43. Separability Clause. – If any provision or part of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force
and effect.
SEC. 44. Repealing Clause. – All articles or provisions of Chapter III (Employment of
Househelpers) of Presidential Decree No. 442, as amended and renumbered by Republic
Act No. 10151 are hereby expressly repealed. All laws, decrees, executive orders,
issuances, rules and regulations or parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.
22
SEC. 45. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.
Approved,
This Act which is a consolidation of Senate Bill No. 78 and House Bill No. 6144 was finally
passed by the Senate and the House of Representatives on November 27, 2012 and
November 26, 2012, respectively.
`````````````````````````````````````````
Pursuant to Republic Act No. 10361 entitled “An Act Instituting Policies for the
Protection and Welfare of Domestic Workers”, the following Implementing Rules and
Regulations (IRR), are hereby issued:
RULE I
GENERAL PROVISIONS
23
(a) The State strongly affirms labor as a primary social force and is committed to
respect, promote, protect and realize the fundamental principles and rights at work
including, but not limited to, abolition of child labor, elimination of all forms of forced labor,
discrimination in employment and occupation, and trafficking in persons, especially
women and children;
(b) The State adheres to internationally accepted working conditions for workers
in general, and establishes labor standards for Kasambahay in particular, towards decent
employment and income, enhanced coverage of social protection, respect for human
rights and strengthened social dialogue;
(c) The State recognizes the need to protect the rights of the Kasambahay against
abuse, harassment, violence, economic exploitation and performance of work that is
hazardous to their physical and mental health;
(d) The State, in protecting the Kasambahay and recognizing their special needs
to ensure safe and healthful working conditions, promotes gender-sensitive measures in
the formulation and implementation of policies and programs affecting the local domestic
work;
(e) The State recognizes the special relations of mutual trust and respect between
the employer and the Kasambahay. It shall ensure that this fiduciary relationship is
strengthened and protected; and
(f) The State affirms the right of the Kasambahay to form, join, or assist
associations or organizations of their own choosing for their mutual benefit and protection
and for purposes of collective negotiation and social dialogue.
(a) “Children under foster family arrangement” refers to children who are living
with a family or household of relative/s and are provided access to education and given
an allowance incidental to education, i.e., “baon”, transportation, school projects, and
school activities; provided that the foster family and foster care arrangements are in
compliance with the procedures and requirements as prescribed by Republic Act No.
10165 or Foster Care Act of 2012.
24
(b) “Debt bondage” refers to the rendering of service by the Kasambahay as
security or payment for a debt where the length and nature of service is not clearly defined
or when the value of the service is not reasonably applied in the payment of the debt.
(c) “Deployment expenses” refers to expenses that are directly used for the
transfer of the Kasambahay from place of origin to the place of work covering the cost of
transportation, meals, communication expense, and other incidental expenses. Advances
or loans by the Kasambahay are not included in the definition of deployment expenses.
(f) “Employer” refers to any person who engages and controls the services of a
Kasambahay and is party to the employment contract.
(g) “Household” refers to the immediate members of the family or the occupants
of the house who are directly and regularly provided services by the Kasambahay.
(j) “Recruitment and finder’s fees” refers to charges and any amount collected
by the private employment agency, recruiter, entity or any third party for the recruitment
and placement of the Kasambahay, which shall not be charged to the Kasambahay.
(k) “Working children” refers to Kasambahay who are fifteen (15) years old and
above but below eighteen (18) years old.
(l) “Service provider” refers to any person that carries an independent business
and undertakes to perform job, work or service on his/her own for a household, according
to his/her own manner and method, and free from the control and direction of the
employer in all matters in connection with the performance of the work except as to the
results thereof.
RULE II
HIRING OF KASAMBAHAY
SECTION 2. Cost of Hiring. – The employer shall shoulder the cost of hiring of a
Kasambahay, whether he/she is hired through a PEA or a third party.
25
SECTION 3. Deployment Expenses. – The employer, whether the Kasambahay
is hired directly or through a PEA, shall pay the expenses directly used for his/her transfer
from place of origin to the place of work.
The employer may recover deployment costs from the Kasambahay whenever the
employment relationship is terminated within six (6) months without just cause.
The foregoing shall be the standard requirements when the employment of the
Kasambahay is facilitated through a PEA.
The cost of the foregoing shall be borne by the prospective employer or the
agency, as the case may be.
(a) Duties and responsibilities of the Kasambahay, which include the responsibility
to render satisfactory service at all times;
(b) Period of employment;
(c) Compensation;
(d) Authorized deductions;
(e) Hours of work and proportionate additional payment;
(f) Rest days and allowable leaves;
(g) Board, lodging and medical attention;
(h) Agreements on deployment expenses, if any;
(i) Loan agreement, if any;
(j) Termination of employment; and
(k) Any other lawful condition agreed upon by both parties.
If the Kasambahay is below 18 years old, the employment contract shall be signed
by his/her parent or lawful guardian on his/ her behalf.
Upon the request of either party, the Punong Barangay or his/her designated
officer shall read and explain the contents of the contract to both parties and shall serve
as witness.
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SECTION 7. Distribution of Copies of Employment Contract. – The employer
shall have the obligation to furnish a copy of the employment contract to the Kasambahay
and a copy to the Office of the Punong Barangay in the barangay where the employer
resides.
Should the parties fail to execute a new contract, the terms and conditions of the
original contract and other improvements granted during the effectivity of the contract are
deemed renewed.
RULE III
RECRUITMENT AND DEPLOYMENT OF KASAMBAHAY
The system shall provide the qualifications of the PEAs with regard to nationality,
owners and officers, office space, capitalization and other requirements, as well as non-
transferability of license and prohibited practices.
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provide qualified replacement at no additional cost to the employer. If such replacement
is not provided, the employer shall be entitled to a refund of seventy-five percent (75%)
of the deployment expenses or fees paid to the PEA.
(b) The Kasambahay abandons the job without justifiable cause, voluntarily
resigns, commits theft or any other analogous acts prejudicial to the employer or his/her
family; or
(c) The Kasambahay is physically or mentally incapable of discharging the
minimum normal requirements of the job, as specified in the employment contract.
RULE IV
RIGHTS OF THE KASAMBAHAY
(a) Two Thousand Five Hundred (Php2,500.00) a month for those employed in the
National Capital Region (NCR);
(b) Two Thousand Pesos (Php2,000.00) a month for those employed in cities and
first-class municipalities; and
(c) One Thousand Five Hundred Pesos (Php1,500.00) a month for those employed
in other municipalities.
After one (1) year from the effectivity of the Batas Kasambahay and periodically
thereafter, the Regional Tripartite Wages and Productivity Boards (RTWPBs) shall review
and if proper, determine and adjust the minimum wage rates of Kasambahay in
accordance with their rules and regulations taking into account the peculiarities of the
Kasambahay employment arrangement.
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SECTION 4. Frequency of Payment of Wages. – The Kasambahay shall be paid
his/her wages at least once a month.
Nothing in this provision shall deprive the Kasambahay and the employer from
agreeing to the following:
Any unused portion of said annual leave shall not be cumulative or carried over to
the succeeding years. Unused leaves shall not be convertible to cash.
The thirteenth-month pay shall be paid not later than December 24 of every year.
Benefits under the SSS include sickness, maternity, disability, retirement, death
and funeral. A unified benefit package under PhilHealth includes Inpatient Hospital Care
and Outpatient Care.
In the event the Kasambahay avails of certain loan privileges from Pag-IBIG Fund
which require the payment of additional or upgraded contributions, the said additional or
upgraded contributions shall be shouldered solely by the Kasambahay.
The SSS, Pag-IBIG and PhilHealth shall develop a unified system of registration
and enrollment within six (6) months from the issuance of this IRR.
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An employer may agree to extend loan assistance to the Kasambahay at an
amount not exceeding the equivalent of his/her six (6) months’ salary.
(a) At least three (3) adequate meals a day taking into consideration the
Kasambahay’s religious beliefs and cultural practices.
(b) Humane sleeping condition that respects the person’s privacy for live-in
arrangement; and
(c) Appropriate rest and medical assistance, including first-aid medicine, in case
of illnesses and injuries sustained during service without loss of benefits.
For Kasambahay under live-out arrangement, he/she shall be provided space for
rest and access to toilet.
Should the Kasambahay use the employer’s telephone or other communication facilities,
the costs shall be borne by the Kasambahay, unless waived by the employer.
The employer shall adjust the work schedule of the Kasambahay to allow his/her
access to education or training without hampering the services required by the employer.
Access to education may include financial assistance at the option of the employer.
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The Kasambahay shall be afforded opportunity to attend organization meetings.
The Regional Tripartite Industrial Peace Council (RTIPC), chaired by the DOLE
Regional Director, shall create within the council a sub-committee to ensure adequate
representation of the Kasambahay in social dialogue on issues and concerns peculiar to
Kasambahay work and their welfare.
RULE V
RIGHTS AND OBLIGATIONS OF THE EMPLOYER
SECTION 2. Pay Slip. – The employer shall at all times provide the Kasambahay
with a copy of the pay slip (Form BK-2) containing the amount paid in cash every pay day,
and indicating all deductions made, if any. The employer shall keep copies of the pay
slips for a period of three (3) years.
SECTION 2. Pay Slip. – The employer shall at all times provide the Kasambahay
with a copy of the pay slip (Form BK-2) containing the amount paid in cash every pay day,
and indicating all deductions made, if any. The employer shall keep copies of the pay
slips for a period of three (3) years.
(b) It shall also be unlawful for the employer to induce the Kasambahay to give up
any part of the wages by force, stealth, intimidation, threat or by any other means
whatsoever.
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(b) The Kasambahay is given reasonable opportunity to show cause why
deduction should not be made;
(c) The total amount of such deductions is fair and reasonable and shall not exceed
the actual loss or damage; and
(d) The deduction from the wages of the Kasambahay does not exceed 20% of
his/her wages in a month.
The DOLE shall extend free assistance in the determination of fair and reasonable
wage deductions under this Section.
SECTION 7. Deposits for Loss or Damage. – It shall be unlawful for the employer
or any other person to require a Kasambahay to make deposits from which deductions
shall be made for the reimbursement of loss or damage to tools, materials, furniture and
equipment in the household.
SECTION 11. Extent of Duty Outside the Household. – The Kasambahay and
the employer may mutually agree for the Kasambahay to temporarily perform a task for
the benefit of another household under the following conditions:
(a) There is an agreement between the Kasambahay and the employer for the
purpose, particularly on the task/s to be performed;
(b) The Kasambahay is entitled to additional payment of not less than the
applicable minimum wage rate;
(c) The original employer shall be responsible for any liability incurred by the
Kasambahay on account of such arrangement; and
(d) The original employer is not charging any amount from the other household for
the arrangement.
The temporary performance referred herein shall not exceed thirty (30) days per
assignment.
It shall be unlawful for the original employer to charge any amount from the said
household where the service of the Kasambahay was temporarily performed.
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SECTION 12. Health and Safety. – The employer shall safeguard the safety and
health of the Kasambahay in accordance with the standards which the DOLE shall
develop through the Bureau of Working Conditions (BWC) and the Occupational Safety
and Health Center (OSHC) six (6) months after the promulgation of this IRR. The said
standards shall take into account the peculiar nature of domestic work.
RULE VI
(a) Work for more than eight (8) hours a day and beyond forty (40) hours a week;
(b) Work between ten o’clock in the evening and six o’clock in the morning of the
following day; and
(c) Work which is hazardous or likely to be harmful to the health, safety or morals
of children, as defined under existing laws and regulations.
RULE VII
POST EMPLOYMENT
(b) In case the duration is not determined by stipulation or by nature of service, the
employer or the Kasambahay may give notice to end the employment relationship five(5)
days before the intended termination of employment.
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SECTION 2. Termination of Employment Initiated by the Kasambahay. – The
Kasambahay may terminate the employment relationship at any time before the
expiration of the contract for any of the following causes:
(a) Verbal or emotional abuse of the Kasambahay by the employer or any member
of the household;
(b) Inhuman treatment including physical abuse of the Kasambahay by the
employer or any member of the household;
(c) Commission of a crime or offense against the Kasambahay 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 IRR;
(e) Any disease prejudicial to the health of the Kasambahay, the employer, or
member/s of the household; and
(f) Other causes analogous to the foregoing.
If the Kasambahay leaves without cause, any unpaid salary due, not exceeding
the equivalent of fifteen (15) days work, shall be forfeited. In addition, the employer may
recover from the Kasambahay deployment expenses, if any, if the services have been
terminated within six (6) months from employment.
If the employer dismissed the Kasambahay for reasons other than the above,
he/she shall pay the Kasambahay earned compensation plus indemnity in the amount
equivalent to fifteen (15) days work.
RULE VIII
TESDA SKILLS TRAINING, ASSESSMENT AND CERTIFICATION
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housekeeping and customize them for local-hired Kasambahay within six (6) months from
the issuance of this IRR.
The competencies to be achieved for NC II consist of: (a) cleaning living room,
dining room, bedroom, toilet, and kitchen; (b) washing and ironing clothes, linen and
fabric; (c) preparing hot and cold meals/food; and (d) serving food and beverage.
RULE IX
REGISTRATION SYSTEM FOR KASAMBAHAY
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The LGUs shall submit a monthly report to the DILG for monitoring and data
analysis. The report shall be made available to the DOLE and other concerned
government agencies.
RULE X
RESCUE AND REHABILITATION OF ABUSED KASAMBAHAY
SECTION 2. Definition and Coverage of Abuse. – Abuse shall refer to any act
or a series of acts committed by an employer or any member of his/her household against
any Kasambahay which results in or is likely to result in physical, sexual, psychological
harm or economic abuse including threats of such acts, battery, assault, coercion,
harassment or arbitrary deprivation of liberty. It includes, but is not limited to, the following
acts:
(a) Physical violence refers to acts that include bodily or physical harm;
(b) Sexual violence refers to an act which is sexual in nature, committed against a
Kasambahay. It includes, but is not limited to:
(d) Economic abuse refers to the withholding of the Kasambahay’s wage or a part
of it or any act which induce the Kasambahay to give up any part of the wage by force,
stealth, intimidation, threat or by any other unlawful means whatsoever;
(e) Any other act which limits the Kasambahay’s exercise of his/her rights as
provided for in the law.
SECTION 3. Parties who can Report the Abuse. – The following may report any
act of abuse committed against a Kasambahay:
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(d) Social workers from the LSWDOs or the DSWD Field Office;
(e) Police officers from the Women and Children Protection Desks;
(f) Barangay Officials;
(g) Lawyer, counsellor, therapist, or healthcare provider of the offended
Kasambahay; or
(h) At least two (2) concerned responsible citizens of the city or municipality where
the abuse occurred and who has personal knowledge of the offense committed.
At all times, the rescue team shall ensure the full protection of the rights of the
abused Kasambahay and the accused while under their custody and control.
In the event that the above-mentioned services are not available at the local level,
the LSWDOs may seek the assistance from the DSWD to provide such services to the
abused Kasambahay.
At all times, the LSWDOs and DSWD shall adopt a gender responsive, rights-based and
culture-sensitive approach to service delivery to facilitate the recovery, rehabilitation and
reintegration of the Kasambahay in mainstream society. The LSWDOs shall also ensure
that the necessary after-care services are made available at least for the next six (6)
months for the reintegrated Kasambahay.
RULE XI
SETTLEMENT/DISPOSITION OF LABOR RELATED-DISPUTES
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SECTION 1. Mechanism for Settlement of Disputes. – (a) All labor-related disputes
shall be filed before the DOLE Field/Provincial/Regional Office having jurisdiction over the
workplace. Such disputes shall go through the thirty-day (30) mandatory conciliation-
mediation to exhaust all efforts for settlement.
RULE XII
UNLAWFUL ACTS AND PENALTIES
(a) Employment of Children below 15 years of age (Section 16, Batas Kasambahay);
(b) Withholding of Wages of the Kasambahay (Section 28, Batas Kasambahay);
(c) Interference in the Disposal of the wages of the Kasambahay (Section 27, Batas
Kasambahay);
(d) Requiring deposits for loss or damage (Section 14, Batas Kasambahay);
(e) Placing the Kasambahay under Debt Bondage (Section 15, Batas Kasambahay);
and
(f) Charging another household for temporarily performed tasks (Section 23, Batas
Kasambahay).
The penalties herein shall be without prejudice to the filing of the appropriate civil
and/ or criminal action by the aggrieved party.
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SECTION 2. “Araw Ng Mga Kasambahay”. – Every 18th day of January shall be
designated as “Araw ng mga Kasambahay”.
RULE XIV
MISCELLANEOUS PROVISIONS
RULE XV
FINAL PROVISIONS
SECTION 3. Effectivity Clause. – This IRR shall take effect fifteen (15) days after
its complete publication in two (2) national newspapers of general circulation.
ROSALINDA DIMAPILIS-BALDOZ
Secretary
Department of Labor and Employment
MAR A. ROXAS
Secretary
Department of Interior and Local Government
ALAN LM PURISIMA
Police Director General
Philippine National Police
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ENRIQUE T. ONA
OIC – President and CEO
PhilHealth
Begun and held in Metro Manila, on Monday, the twenty-sixth day of July, two thousand
ten.
40
HUNDRED FORTY-TWO, AS AMENDED, OTHERWISE KNOWN AS THE LABOR
CODE OF THE PHILIPPINES
SEC. 3. The subsequent articles in Boot Three, Title III, Chapter I to Chapter IV of
Presidential Decree No. 442 are hereby renumbered accordingly.
SEC. 4. A new chapter is hereby inserted after Book Three, Title III of Presidential Decree
No. 442, to read as follows:
“Chapter V
“Art. 154. Coverage.— This chapter shall apply to all persons, who shall be employed or
permitted or suffered to work at night, except those employed in agriculture, stock raising,
fishing, maritime transport and inland navigation, during a period of not less than seven
(7) consecutive hours, including the interval from midnight to five o’clock in the morning,
to be determined by the Secretary of Labor and Employment, after consulting the workers’
representatives/labor organizations and employers.
‘”Night worker’ means any employed person whose work requires performance of a
substantial number of hours of night work which exceeds a specified limit. This limit shall
be fixed by the Secretary of Labor after consulting the workers’ representatives/labor
organizations and employers.”
“Art. 155. Health Assessment, – At their request, workers shall have the right to undergo
a health assessment without charge and to receive advice on how to reduce or avoid
health problems associated with their work:
“(c) If they experience health problems during such an assignment which are not caused
by factors other than the performance of night work.
“With the exception of a finding of unfitness for night work, the findings of such
assessments shall not be transmitted to others without the workers’ consent and shall not
be used to their detriment.”
“Art. 156. Mandatory Facilities.— Suitable first-aid facilities shall be made available for
workers performing night work, including arrangements where such workers, where
necessary, can be taken immediately to a place for appropriate treatment. The employers
are likewise required to provide safe and healthful working conditions and adequate or
reasonable facilities such as sleeping or resting quarters in the establishment and
transportation from the work premises to the nearest point of their residence subject to
exceptions and guidelines to be provided by the DOLE.”
“Art. 157. Transfer.— Night workers who are certified as unfit for night work, due to health
reasons, shall be transferred, whenever practicable, to a similar job for which they are fit
to work.
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“If such transfer to a similar job is not practicable, these workers shall be granted the
same benefits as other workers who are unable to work, or to secure employment during
such period.
“A night worker certified as temporarily unfit for night work shall be given the same
protection against dismissal or notice of dismissal as other workers who are prevented
from working for reasons of health.”
“Art. 158. Women Night Workers.— Measures shall be taken to ensure that an alternative
to night work is available to women workers who would otherwise be called upon to
perform such work:
“(a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be
divided between the time before and after childbirth;
“(b) For additional periods, in respect of which a medical certificate is produced stating
that said additional periods are necessary for the health of the mother or child:
“(2) During a specified time beyond the period, after childbirth is fixed pursuant to
subparagraph (a) above, the length of which shall be determined by the DOLE after
consulting the labor organizations and employers.
“(i) A woman worker shall not be dismissed or given notice of dismissal, except for just or
authorised causes provided for in this Code that are not connected with pregnancy,
childbirth and childcare responsibilities.
“(ii) A woman worker shall not lose the benefits regarding her status, seniority, and access
to promotion which may attach to her regular night work position.
‘Pregnant women and nursing mothers may he allowed to work at night only if a
competent physician, other than the company physician, shall certify their fitness to
render night work, and specify, in the ease of pregnant employees, the period of the
pregnancy that they can safely work.
“The measures referred to in this article may include transfer to day work where this is
possible, the provision of social security benefits or an extension of maternity leave.
“The provisions of this article shall not have the effect of reducing the protection and
benefits connected with maternity leave under existing laws.”
“Art. 159. Compensation.— The compensation for night workers in the form of working
time, pay or similar benefits shall recognize the exceptional nature of night work.”
“Art. 160. Social Services.—Appropriate social services shall be provided for night
workers and, where necessary, for workers performing night work.”
“Art. 161. Night Work Schedules.— Before introducing work schedules requiring the
services of night workers, the employer shall consult the workers’ representatives/labor
organizations concerned on the details of such schedules and the forms of organization
of night work that are best adapted to the establishment and its personnel, as well as on
the occupational health measures and social services which are required. In
establishments employing night workers, consultation shall take place regularly.”
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SEC. 5. The subsequent articles starting from Book Four, Title I, Chapter I of Presidential
Decree No. 442 are hereby renumbered accordingly.
SEC. 6. Application.— The measures referred to in this chapter shall be applied not later
than six (G) months from the effectivity of this Act.
SEC. 8. Penalties.— Any violation of this Act, and the rules and regulations issued
pursuant hereof shall be punished with a fine of not less than Thirty thousand pesos
(P30,000.00) nor more than Fifty thousand pesos (P50,000.00) or imprisonment of not
less than six (6) months, or both, at the discretion of the court. If the offense is committed
by a corporation, trust, firm, partnership or association, or other entity, the penalty shall
be imposed upon the guilty officer or officers of such corporation, trust, firm, partnership
or association, or entity.
SEC. 9. Separability Clause.— If any portion of this Act is declared unconstitutional, the
same shall not affect the validity and effectivity of the other provisions not affected
thereby.
SEC. 10. Repealing Clause.— All laws, acts, decrees, executive orders, rules and
regulations or other issuances or parts thereof, which are inconsistent with this Act, are
hereby modified and repealed.
SEC. 11 Effectivity Clause.— This Act shall take effect after fifteen (15) days following its
publication in two (2) national newspapers of general circulation.
- end -
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