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LABOR STANDARDS law is that labor law which prescribes terms and conditions of employment

like Book in Book IV, Title I and Book VI of the Labor Code. These Books of the Labor Code deal
with working conditions, wages, working conditions for women, minors, househelpers and
homeworkers, medical and dental services, occupational health and safety, termination and retirement.

Labor legislation is an exercise of police power.The purpose of labor legislation is to regulate the
relations between employers and employees respecting the terms and conditions of
employment, either by providing for certain standards or for a legal framework within which
better terms and conditions of work could be negotiated through collective bargaining. It is
intended to correct the injustices inherent in employer-employee relationship.

Employee - A person who works for another in return for financial or other compensation.
Employer - a. To provide work to (someone) for pay: agreed to employ the job applicant.

Employment is a contract between two parties, one being the employer and the other being the
employee. An employee may be defined as: "A person in the service of another under any contract of
hire, express or implied, oral or written, where the employer has the power or right to control and direct
the employee in the material details of how the work is to be performed." Black's Law Dictionary page
471 (5th ed. 1979).

Reason for Affording Protection to Labor

8 Protection to labor is intended to raise the worker to equal
footing with the employer and shield him from abuses brought
about by the necessity for survival.
8 Sanchez vs. Harry Lyons – employer stands on higher footing
than the employee. First, there is greater supply than demand
for labor. Second, the need for employment by labor comes
from vital and even desperate necessity.
8 Article 24 of the Civil Code – “In all contractual property or other
relations, when one of the parties is at a disadvantage on
account of his moral dependence, ignorance, indigence, mental
weakness, tender age or other

a. Protection to labor cannot be used as a pretext to defeat the
rights and prerogatives of an employer. Thus, the validity of the
dismissal of an employee found guilty of violating rules designed
for the safety of the employees themselves, should be upheld
because it protects labor and at the same time gives the
employer its due.
b. Protection to labor cannot be used as an excuse to distribute
charities at the expense of an employer. Courts cannot renderjudgment on the basis of sympathies and
inclinations, and
consequently, distribute charities at the expense of the
employer, because our constitutional government assures the
latter against deprivation of property except in accordance with
the statues and supplementary equitable principles.

Salient Features of the Labor Code

a. It re-orients labor laws towards development and
employment goals;
b. It institutionalizes the NLRC to facilitate the speedy
settlement of labor disputes;
c. It establishes a new system of workmen’s
d. It establishes a system for employment of overseas
workers and optimizes national benefit therefrom in the
form of dollar remittances and improved skills and
technology for our people; and
e. It institutionalizes voluntary arbitration as a mode of
settling labor disputes.

Art. 2. Date of Effectivity. – This Code shall take effect six (6)
months after its promulgation.
1. Effectivity of the Labor Code
8 Took effect on November 1,

Art. 3. Declaration of Basic Policy. – The State shall afford

protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. The State shall
assurethe rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane conditions of

"Recruitment and placement" refers to any act of canvassing,

enlisting, contracting, transporting, utilizing, hiring or procuring
workers, and includes referrals, contract services, promising
or advertising for employment, locally or abroad, whether forprofit or not: Provided, That any person or
entity which, in any
manner, offers or promises for a fee, employment to two or
more persons shall be deemed engaged in recruitment and
Recruitment and placement
8 Refers to any act of hiring or procuring workers.
8 It includes:
a. Referrals
b. Contract services
c. Promising or advertising a local or overseas job

"License" means a document issued by the Department of

Labor authorizing a person or entity to operate a private
employment agency.
f. "Authority" means a document issued by the Department of
Labor authorizing a person or association to engage in
recruitment and placement activities as a private recruitment