PRELIMINARY TITLE – Articles 1 to 11

A1. This Decree shall be known as the “Labor Code of the Philippines” A5. DOLE as in-charge in the administration & enforcement of this Code (including promulgation of
IRR’s)
A2. Labor Legislation (rules governing relations between capital & labor)
A6. Labor Code to apply to all workers, agricultural or not.

Labor Standards – Labor Relation – Labor Code – Charter created by SEC thru Corporation Code
Norms set by law; Status, rights & GOCC
Minimum statutory duties interaction Civil Service – Charter created by Congress thru Special Law (original charter)
requirements between employee &
employer  General Rule: Labor Code applies when there is an employer-employee relationship.
Exception: But when there is no causal relationship between the relief prayed for the
 Labor – Physical toil (skilled or unskilled). employer-employee relationship, Labor will not apply, regular courts will have jurisdiction.
 Skill – Familiar knowledge of any art or science used in the performance of labor/work.
 Work – Broader than labor; covers all forms of physical and mental exertion (includes self-
employment)
 Worker vs. Employee – Employee is a salaried person working for another.
 Labor Law vs. Social Legislation – Labor law is a type of social legislation.
 Social Justice – Niether communism, nor despotism, nor atomism, nor anarchy, but the A7, A8, A9, A10 & A11 – Emancipation of Tenants (Governed by the Agrarian Reform Law)
humanization of laws and the equalization of social and economic forces by the State so
that justice in its rational and objectively secular conception may at least be approximated.
Calalang vs. Williams
 Labor Code – Set of substantive & procedural laws that prescribe the rights &
responsibilities of industrial participants, so as to institute social justice.
 Law cannot be divorced from economics and ethics
 Labor law and its International Aspect

*******RELATED LAWS********
1. Civil Code – Relations between capital & labor not merely contractual (Art. 1700);
Damages in case of wilful neglect of duty.
2. Revised Penal Code – Penalty to violence and threat by employer or employee. (Art.
289)
3. Special Laws

A3. Constitutional Policy in promoting and protecting labor. (Socio-economic goals!)

A4. In case of doubt, it shall be resolved in favour of the labor. (SOCIAL JUSTICE – “Justice is the
intention of the Labor Law”

 Management Rights (DRoPS) – Right to dismiss, Right to ROI, Right to prescribe rules, &
Right to select employee.
!Management Rights are subject to limitations like law, contract & general principles of
fair play & justice!
BOOK ONE  Lex Loci Contractus (the place where the contract is made) – Employees are not
Pre-Employment – Article 12 stripped off of their security of tenure when they moved to work in a different
A12. Objectives – Promotion and regulation of employment, either local or overseas in general. jurisdiction.
 POEA Revised Rules and Regulations 2016 provide minimum provisions in
-------------------------------------------------Title 1-------------------------------------------------------------------- employment contracts for OFW’s. (deemed included if excluded) ie. Basic monthly
Chapter One: General Provisions salary, food and accommodation, commencement & duration of contract, free
Recruitment and Placement of workers – Articles 13 to 24 transport from and to the point of hire, OT pay, leaves, valid causes of termination,
A13. Recruitment and Placement (CETCHUPA) - Any act of C-E-T-C-H-U-P-A for employment, settlement of disputes, repatriation, and other country- or skills-specific policies. !
locally or abroad, whether for profit or not. WITHOUT OF COURSE, PREJUDICE TO THE FREEDOM TO STIPULATE !
 Disclosure of Terms and Condition of employment.
 License – document issued by DOLE authorizing a person/entity to operate a PRIVATE  Total/Partial Disability of Worker (POEA-SEC –vs- Labor Code –vs- Amended Rules
EMPLOYMENT AGNECY (for a fee) on Employee Compensation) – Permanent disability to work if declared by the
 Authority - document issued by DOLE authorizing a person/entity to operate a PRIVATE physician within 120-day or up to 240-day period to be as such or if not declared, is
RECRUIT AGNECY (without a fee) unable to work at the lapse of 120-day period or 240 days as the case may be. Note
 If the employer recruits directly, license/authority is not needed. that, recovery is irrelevant so long as the period has elapsed. Prior determination to
be permanently disable, employee is considered to be temporarily disable.
People vs. Panis – number of persons (i.e. 2 or more) is irrelevant in violating the rules on  Third Doctor Referral (POEA-SEC) – to resolve claims more speedily than of they
the prohibition on recruitment and placement. were brought to court.
 POEA-SEC Section 20: Compensation and Benefits for Death - Not necessary that
A14. EO 292 named DOLE as the primary policy making body in relation to the promotion of the seafarer died during the term of his employment, rather, it is enough that that the
employment, advancement of worker’s welfare and maintenance of industrial peace. sea-farer’s work-related injury or illness which eventually causes his death should
A15. Bureau of Employment Services (BES) Bureau of Local Employment (BLE) have occurred during the term of his employment. – same case in medical
(General) (Local Employment) repatriation – BASIS: Interpretation of law in favor of labor, and by the State policy on
 By virtue of D.O. No. 141-4, the functions with regards to overseas recruitment and labor protection 
placement now pertain to the POEA, not the BLE.  RA 10706 – Ambulant Chasing as a criminal offense. This law further provides that
the total compensation of a representative shall not exceed 10% of the benefit
A16. Only Public Employment Offices shall engage RP (with exception!!!) awarded to the seafarer/seafarer’s heir.
A17. Overseas Employment Development Board (OEDB) – Under E.O. 797, OEDB, National  Invalid Side Agreement (diminishing of employees pay and benefits) – Void unless
Seaman Board (NSB) and the overseas employment program of the BES were consolidated approved by POEA.
into a single structure – POEA.  NLRC’s Jurisdiction over money-claims
 POEA – protector of overseas worker’s right.  When to file OFW Money Claims? POEA-SEC Sec. 28 vs. Labor Code Article 291
 Under RA 8042, employer-employee relationship cases are transferred from POEA to - POEA-SEC - 1 year from the seafarer’s return to the point of hire.(null & void)
NLRC. What remains under the jurisdiction of POEA are administrative cases - Labor Code – 3 years from the seafarer’s return to the point of hire.
involving recruitment and placement, disciplinary actions involving  General Rule: Security of Tenure Principle (Labor Code Art. 294)
employers/principals/contracting partners. Exception: Employment-at-Will (EAW) *****NOTE: EAW is not valid in Local Employment
 Cases under POEA jurisdiction is appealable only to the Office of the DOLE Secretary  If, illegally dismissed, what is the remedy of the OFW? According to the Migrant
A18. Ban on Direct Hiring (General Rule), exceptions is INOM. (I)nternational Organization, Worker’s Act:
(N)ame Hiring, (O)thers, (M)embers of Diplomatic Corps. 1. Full reimbursement of placement fee with 12% interest per annum.
 Name Hirees – went to abroad and been hired on their own efforts and representation 2. Salaries for the unexpired portion of the employment contract.
without agency assistance.  Termination of Employment of Seafarer (1) Termination due to expiration or other
A19. Office of Emigrant Affairs reasons (2) signing off form the vessel (3) arrival at the point of hire.
A20. POEA – National Seaman Board, now POEA
  Seafarers in ocean-going vessels are contractual (Article 295) while domestic
seafarers are entitled to security of tenure (D.O. 231), hence can be regular
employees.
A21. Foreign Service Role and Participation (Secretary of Labor & Philippine Diplomatic and
Consular Officials)
 Migrant Worker’s Act – assigns additional four government agencies to protect migrant
workers,
 Department of Foreign Affairs (DFA) –
 Department of Labor and Employment (DOLE) – shall see if labor laws abroad are
fairly applied.
 Philippine Overseas Employment Administration (POEA) – shall regulate private
sector’s participation in RP by setting up a licensing and registration system.
 Overseas Welfare Administration (OWWA) – attached to the DOLE to promote
welfare of OFW’s (i.e. against grievances)
 REPATRIATION –
- Of the remains – borne by the principal and/or agency
- At worker’s fault – not to be borne by the principal and/or agency
- In case of disasters – undertaken by OWWA
! Pending investigation if the employee is at fault or not, an OFW cannot be left
stranded – Repatriation is an unconditional liability!
! Mandatory repatriation of Under-age worker – Revocation of license of the agency,
fine of 500,000 to 1,000,000, and full refund of processing fees ! – other than
damages of course !!!
 With license – OWWA
 Without License - DFA
A22. Mandatory remittance of Foreign Exchange Earnings – 50% to 80% of basic salary
A23. Composition of POEA (As reorganized by EO 247)
A24. POEA Regulations – Must be published to be enforceable 
Chapter Two: Regulations of Recruitment and Placement Activities – Articles 25 to 35
A25. Private Sector Participation in the Recruitment and Placement of Workers
A26. Travel agencies prohibited to recruit.
 Prohibition also applies to persons with record of illegal recruitment (POEA Rules), and to
any official or employee of DOLE, POEA, OWWA & DFA (Migrant Worker’s Act)
A27. Citizenship Requirement – Only Filipino citizens or any juridical person whose capitalization is
at least 75% Filipino-owned and controlled.
LOCAL – At least OVERSEAS –At
A28. Capitalization –
1 Million networth least 5 Million
or paid-up capital. networth of paid-up
capital.
 DISQUALIFICATIONS
 LOCAL EMPLOYMENT – Convicted (or with probable cause of guilt) of illegal
recruitment, trafficking, anti-child labor violation or crimes involving moral turpitude;
Agency which license is previously revoked; Cooperatives not registered under the
Cooperative Act of the Philippines; Enforcers, officials and employees of DOLE; Sole
proprietors who already has a license for RP; Sole proprietors and juridical entities
already licensed is prohibited to engage in job-contracting and sub-contracting activities.
 OVERSEAS EMPLOYMENT – Travel agencies and sale agencies of airlines; Officers or
members of the Boards of entities engaged in travel agency business; Persons, partners,
officers or directors of entities which provide compulsory insurance coverage for agency
hired OFW’s; Convicted (or with probable cause of guilt) of illegal recruitment, trafficking,
anti-child labor violation or crimes involving moral turpitude; Agency which license is
previously revoked; Official or employee of DOLE, POEA, OWWA, DFA, DOJ, DOH, BI,
IC, NLRC, TESDA, CFO, NBI, PNP, CAAP, and other government agencies directly
involved in RA 8042 as amended and any of his/her relatives within the 4th civil degree of
consanguinity or affinity.
 Validity of License
 LOCAL EMPLOYMENT – 3 years (renewal to filed 30-60 days prior expiration, expiration
on the original date of expiration)
 OVERSEAS EMPLOYMENT – Provisional license for 2 years (maybe upgraded after
deployment of 100 workers and certification of 1,000,000 escrow deposit) Upgrade after
full term of 4 years to a regular license to be filed 3 months before expiration of
provisional license. (Provisional License not eligible for domestic employment)
 Liability Undertakings of Recruitment Agency – Solidarily liable with the employer
A29. Non-transferability of License or Authority – General Rule: Recruitment on the authorized
official address only. Exception: Provincial recruitment/job fairs upon written authority from
the POEA.
A30. Registration fees
A31. Bonds – cash or surety (implied)
 To ensure prompt and effective recourse against such companies when held liable for
claims (employment related claims and violation of labor laws i.e licensing)
 Appeal Bonds (Article 223) - required for the perfection of an appeal (apart from bond
required under article 31)
 Garnishment of Bonds (due to reasons other than employment related claims and violation
of labor laws i.e case of airline tickets) will cause insufficiency of the posted bond, hence
required by POEA to replenish the escrow deposit garnished.
A32. Fees to be paid by workers.
 NO FEES WHATSOEVER SHALL BE COLLECTED NEITHER
DEDUCTED FROM THE SALARIES OR WAGES OF THE WORKERS.
  LOCAL EMPLOYMENT – Chargeable fees to EMPLOYER MAY include ***service fee & Exception: Worker’s insisted to send them back to their foreign employers despite
transportation expense (from residence to place of work) knowledge of the employer’s inability to pay salary. (Feagle Construction Corp. vs. Gayda)
 Replacement of worker without cost – (1) Unable to work within one month from first  IMPUTED KNOWLEDGE does not apply when there is an extension of employment
day of work due to illness (2) resignation, abandonment, theft, etc within 3 months from contract without the knowledge of the agency. (Catan vs. NLRC)
first day of work. OR REFUND OF 75% SERVICE FEE  Third party Liability is valid and enforceable as it is included on the verified undertaking
 Waiver of right of replacement or refund 30 days after the 1 month or 3 months period. submitted when securing license or authority.
 OVERSEAS EMPLOYMENT – Visa, stamping fee, work permit, residence permit, roundtrip  Moral and exemplary damages for nonchalant attitude of whatever reason (even non-work
airfare, POEA processing fee, OWWA membership fee, transportation from airport to related)
jobsite and additional trade test or assessment required by the principal (must be  “If a foreign corporation not engaged in business in the Philippines , is not barred from
commensurate with the fair market value of the agency’s services) seeking redress form courts on the Philippines, that same corporation cannot claim
 FEES CHARGEABLE TO OFW – exemption from being sued on the Philippine courts” – Facilities Management Corp. Vs.
1. Placement fee (one month basic salary) except if the OFW is a domestic worker or Dela Osa
workers in a country not charging placement fee. (to be paid only by the OFW AFTER
signing the POEA-approved contract) Chapter Three: Miscellaneous Provisions
2. Documentation Cost – Passport, NBI/Police/Barangay Clearance, NSO Birth Illegal Recruitment and Prohibited Activities – Articles 36 to 39
Certificate, TOR & Diploma, PRC License, Certificate of Competency. A36. Regulatory Power
3. Membership with Philhealth, Pag-IBIG and SSS. A37. Visitorial Power – Inspection of the Secretary of Labor
*** required insurance is to be paid by the agency A38. Illegal Recruitment – by a non-licensee or a licensee (RA 8042)
 Refund of Fees – collected in excess  Whether for profit or not!
 Under BLE D.O. No. 141-14, the following are acts of illegal recruitment
A33. Reports on Employment Status 1. Overcharging
A34. Prohibited Practices 2. False Notice
- Charge excessive fees 3. Misrepresentation to secure license
- Furnish false information 4. Inducing worker to quit
- Commit any act of misrepresentation 5. Inducement not to employ
- Induce employment acquittal 6. Recruitment for harmful jobs
- Influence unemployment of a worker (who did not apply on their agency) 7. Obstructing inspection
- RP to jobs harmful to health, moral of or dignity of the country 8. Contract Substitution
- Attempt to or obstruct inspections  In addition to the above-mentioned 8 acts of illegal recruitment, the following acts apply to
- Fail to file required reports overseas employment.
- Substitute approved-employment contracts after signing 1. Misrepresentation in Documentation
- To be member of board or officer of a travel agency or indirectly in the management of a 2. Non-submission of Reports
travelling agency 3. Involvement in Travel Agency
- Withhold travel documents due to money 4. Withholding of Documents
A35. Suspension/Cancellation of License or Authority 5. Failure to Deploy
6. Failure to reimburse
*********POEA and SECRETARY OF LABOR**********
7. Non-Filipino Manager
(Concurrent Jurisdiction)
8. Excessive Interest – Loan to OFW exceeding 8% per annum
9. Specifying a Loan Entity
 General Rule: Agency is solidarily liable with the principal (extends even up to the end of 10. Non-renegotiation of Loan – after premature termination of employment contract
the employment contract) 11. Specifying Training Entity
12. Specifying Medical Entity
 13. Violation of Suspension --------------------------------------------------------Title 2----------------------------------------------------------------
14. Collection of Insurance Premium Employment of Non-Resident Aliens – Article 40 to 42
 Illegal Recruitment As Economic Sabotage – if committed by a syndicate (if carried out by A40. NRA employment permit versus Aliens Employment Registration Certificate (AERC) – for
there or more persons conspiring with each other) of if committed in large scale (committed resident alien
AGAINST three or more persons individually or as a group) - Only when there is no available Filipino, NRA will be allowed. But, alien may be
 Simple Illegal Recruitment – there must be at least a promise of employment or DISTINCT employed in preferred areas of investment with recommendation of the
IMPRESSION of the power to provide employment (any act even without a fee so long as it Secretary of Labor.
is CETCHUPA. A41. Prohibition against transfer of employment
 Lack of receipt not fatal to the prosecution of illegal recruitment. A42. Submission of list of employed foreigners
 Illegal Recruiter can also be charge of ESTAFA
 Employee without control and knowledge cannot be held liable for illegal recruitment.
 A disqualified foreign principal cannot anymore recruit Filipino workers.
 Only a judge can issue a warrant of arrest (Salazar vs. Achoso)
 POEA can still arrest by virtue of valid warrantless arrest.
 Closure order (given by regional director, the secretary, of the DOLE administrator) may be
motioned to be lifted 10 days from such order. If motion is denied, it may be appealed to
the Secretary.
A39. Penalties
 LOCAL EMPLOYMENT (Labor Code)
1. 2 to 5 years plus 10k to 50k if a licensee
2. 4 to 8 years plus 20k to 100k is not a licensee
3. Life imprisonment plus 100k if there is economic sabotage
4. Automatic Revocation of License
 OVERSEAS EMPLOYMENT (RA 8042)
1. Reclusion Temporal plus 1M to 2M fine.
2. Life imprisonment plus 2M to 5M fine, if there is economic sabotage, provided that
when the agency is a non-licensee or recruited a minor, maximum penalty shall be
imposed.
3. Any person who commits prohibited acts shall be liable for Prision Mayor and 500k to
1M fine.
4. Automatic revocation of license.
 If an alien, plus deportation.
 VENUE: RTC
 Preliminary investigation shall be terminated within 30 days from date of filing. If PI is
conducted by a prosecutor, and there is probable cause, information shall be made and
files in court within 24 hours. If PI is conducted by a judge and there is probable cause,
information shall be made and filed in court within 48 hours.
 Prescriptive Period: 5 years or 20 years (if there is economic sabotage)
BOOK TWO A60. ONLY EMPLOYERS IN THE HIGHLY TECHNICAL INDUSTRIES MAY EMPLOY
---------------------------------------------------------Title 1---------------------------------------------------------------- APPRENTICES AND ONLY IN APPRENTICEABLE OCCUPATIONS APPROVED BY THE
National Manpower Development Program MINISTER OF LABOR AND EMPLOYMENT.
Chapter One  A certificate is required prior hiring of apprentices.
National Policies and Administrative Machinery for their Implementation – Article 43 to 56  TESDA – implements and administer apprenticeship programs (TESDA Act of 1994)
A43. Objective to develop human resources and anything related to it.  Apprenticeable Occupation – endorsed and approved by TESDA
A44. Definitions A61. Period of apprenticeship shall not exceed 6 months; Wages may be lowered by only up to
(a) Manpower – portion of population capable to produce goods and services. 75% of the minimum wage; Apprenticeship needs DOLE’s prior approval
(b) Entrepreneurship – Training for self-employment A62. Signing of Apprenticeship Agreement
A45. National Manpower and Youth Council – now TESDA A63. Venue of Apprenticeship Program (Within the entity, DOLE’s training center, training center
A46. National Manpower Plan – Long-term National Manpower Plan related to the entity – entity’s choice)
A47. National Manpower Skills Center A64. Sponsoring of Apprenticeship Program
A48. Skills Standard A65. VIOLATION OF APPRENTICESHIP AGREEMENT – DOLE will investigate
A49. Administration of Training Programs – this does not apply to apprentices, learners and A66. Appeal to the Secretary of Labor – 5 days from receipt of DOLE’s decision. Decision of
handicapped workers Secretary of Labor is final and executor.
A50. Industry Boards A67. Exhaustion of Administrative Remedies
A51. Employment Service Training Functions A68. Aptitude Test – in selection of apprentice
A52. Incentive Scheme – additional deduction on taxable income of ½ of labor training expenses, A69. Theoretical Instruction – by the employer or by the DOLE
other than apprenticeship, are approved by the council, and provided that the deduction does A70. Apprenticeship Program, VOLUNTARY – but the President may make it compulsory in the
not exceed 10% of direct labor wages. name of demands; Also, aliens may be an apprentice.
A53. Council Secretariat – Directors shall be appointed by the President upon recommendation of A71. Deductibility of training cost
the Secretary of Labor. A72. Apprenticeship without compensation – allowed if school required or as a requisite for
A54. Regional Manpower Development Offices graduation (OJT)
A55. Hiring of Qualified Consultants  Schools have liability to injuries caused by any working student (though no employee-
A66. Rules and Regulation employer relationship exists)
---------------------------------------------------------Title 2---------------------------------------------------------------- Chapter Two
Chapter One Learners – Article 73 to 77
Apprentices – Article 57 to 72  Not exceeding 3 months
A57. Objectives. Meet training demands, establish apprenticeship program, establish  For non-apprenticeable occupations
apprenticeship standards.  Semi-skilled jobs (easier to learn)
A58. Definitions  Since it is easier, an employer may commit to hire the learner after learnership. No such
- Apprenticeship – training SUPPLEMENTED BY RELATED THEORETICAL commitment exist in apprenticeship.
INSTRUCTION. (Hands-on training of an upcoming worker) Chapter Three
- Apprentice – covered by a written apprenticeship agreement. Handicapped workers – Article 78 to 81
- Apprenticeable Occupation – employment which requires more than 3 months of  Handicapped workers are those whose earning capacity is impaired by age or physical
practical training. or mental deficiency or injury.
- Apprenticeship Agreement – contract binding an employer to train and accept terms of  They may be employment to avoid curtailment of employment opportunities.
apprenticeship program.  Wage may be lowered until 75% only.
A59. An apprentice shall be at least 14 years of age (but now 15 y/o by virtue of RA 7658),  Handicapped workers may also be hired as an apprentice or learner.
possess vocational aptitude and capacity for appropriate tests, and possess ability to comprehend  Qualified disabled employee subject to same terms and conditions and may be a regular
and follow oral and written instructions. (Additional requirements may be recommended) employee.
 Sheltered employment – provision for productive work opportunity for handicaps.
BOOK THREE: Conditions of Employment
---------------------------------------------------------Title 1----------------------------------------------------------------  Labor Union and Unregistered Association as Employer
Working Conditions and Rest Period  Kinds of Employees:
Chapter One - Temporary or Permanent (Tenure) *Fixed Period employment is temporary EENT
Hours of Work – Article 82 to 90 - Excluded on the benefits of Book Three Title 1
- Time or Non-time
A82. Excluded persons: G-M-F-F-D-P-R - Daily paid or No work, no pay
1. Government Employees - Managerial, supervisory or rank-and-file
2. Managerial Employees (with their staffs)
3. Field Personnel NORMAL HOURS OF WORK – Not exceeding 8 hours (Within a work day)
4. Members of the family of the employer who are support dependent  Through a contract freely entered into, workshift may exceed 8 hours with corresponding
5. Domestic helpers OT pay
6. Persons in personal service of another  Hours Worked? Shall include all the time the EEE is required to be in duty in a
7. Workers paid by result as determined by the Secretary of Labor (inc. piece rate workers) particular place OR is suffered or permitted to work. (Rest periods are counted!!!)
NOTE: All hours worked, EE need not leave the premises to stop working, if the work
**** retail establishment employing less than 10 workers benefited the EER it is counted, inactive work due to causes beyond control is included.
 Preliminary activities – if required by EER, it is included
*********LEGAL vs. SOCIAL vs. ECONOMICAL  Waiting to be engaged VS Engaged to wait
TEST OF EMPLOYMENT RELATIONSHIP  Working while eating – compensable if required to work while eating
Four-fold Test (South West Disaster Control)  Working while sleeping – compensable depending on AGREEMENT or NATURE of the
 Control not needed to be exercised! services (if the sleep is subject to serious interruption, it’ll be compensable)
Two-tiered Approach: Economic Dependence Test  On-call – compensable (i.e. driver who may be called anytime; Engaged to wait)
 With cellular phone or other contact device? NOT AT WORK
 No required evidence of to prove employer-employee relationship.  TRAVEL TIME:
 Mode of compensation not a test. - From home to work – not compensable
 E-E relationship determined by law, not by contract. - All in the days work – compensable
- Away from home – compensable if overnights and during work days
WHEN EMPLOYMENT RELATIONSHIP EXIST  Lectures, meetings and training programs – not compensable if (1) beyond working
1. Salaried Insurance Agent – (Salaried or commission basis?) Great Pacific Life hours (2) voluntary (3) EEE does not perform voluntary work during such attendance.
Assurance Corporation vs. Judico  Semestral break compensable
2. School Teachers – Feati University vs. Jose S. Bautista and Feati  Work Hours of Seamen – see definition and notes for hours worked
University Faculty  Meal Periods – Not less than 60 minutes (meal time less than 20 minutes is rest period)
3. Jeepney Drivers, Taxi Drivers, Barber – Citizen’s League of Free Workers, et. - Meal time may be shortened (with pay) if there is urgent work [work is non-
Al. vs. Abbas manual or does not involve serious physical exertion; establishment usually
4. Boundary-Hulog – Villamaria vs. CA and Bustamante operates not less than 16 hours a day; emergency (BUT NOT COMPENSABLE
5. Truck Driver, employee not a partner - Sy et. Al vs. CA and J. Sahot IF REQUESTED BY EEE SO THAT EEE CAN GO HOME EARLIER)
6. Piece Rate Workers – Makati Haberdashery, Inc. vs. NLRC  Night shift differential – Additional 10% 10PM to 6AM
7. Street-hired Cargadores – Costales vs. Bienvenido and Cofarm Grains
8. Workers in Movie Projects – Maraguinot vs. NLRC and Viva Films
  COMPULSARY OT WORK (1) There is war or there is a declared National Assemby (2)
Necessary to prevent loss of life or property or perishable goods (3) urgent work to be
OVERTIME WORK performed in machines, etc
**Consider night shift
Classification Basic Pay Only differential & working
Basic OT Increment Chapter Two
Pay OT Pay
hrs Weekly Rest Periods – Article 91 to 93

Regular Day Daily Rate Divided by 8 hrs Times no. hrs of OT work - times 125%
SPECIAL NON WORKING HOLIDAY (EO 292 as amended by RA 9849)
Special Non-Working
Holiday OR Scheduled Daily Rate Divided by 8 hrs Times no. hrs of OT work times 130% times 130%  Last Day of the Year (December 31)
Rest Day  All Saints Day (November 1)
Special Non-Working  Ninoy Aquino Day (Monday near August 21)
Holiday FALLING ON Daily Rate Divided by 8 hrs Times no. hrs of OT work times 150% times 130%
Scheduled Rest Day  December 24 (Presidential Proclamation)
Regular Holiday Daily Rate Divided by 8 hrs Times no. hrs of OT work times 200% times 130%
Regular Holiday  Premium pay definition
FALLING ON Daily Rate Divided by 8 hrs Times no. hrs of OT work times 260% times 130%
Scheduled Rest Day
Chapter Three
Note: If the time work is within 10PM to 6AM, there will be a night differential of additional 10%, hence
further multiply to 110% Holiday, Service Incentive Leaves and Service Charges – Article 94 to 96

 CBA may stipulate higher OT pay rate  Daily basic wage and COLA
 THE DIVISOR IN COMPUTING THE DAILY RATE IS THE ACTUAL WORKING DAYS  When a regular holiday falls on Sunday, the next Monday is not a holiday!
IN A YEAR
 A divisor lower than 365 is allowed if the wage rate does not cut across the minimum REGULAR HOLIDAYS
wage rate.  New Year’s Day (January 1)
 Express instruction not required for OT pay, as long as the EER benefited or the EEE is  Maundy Thursday (Movable Date)
permitted or suffered to work; Verbal instruction prevails over memorandum prohibiting  Good Friday (Movable Date)
OT work; NO OT PAY DURING REST SUNDAYS, HOLIDAYS OR SHUTDOWNS  Araw ng Kagitingan (Monday nearest April 9)
UNLESS THERE IS WRITTEN AUTHORITY  Labor Day (Monday nearest May 1)
 Laches and estoppel not applicable to claims of compensation  Independence Day (Monday nearest June 12)
 NO WAIVER OF OT PAY EXCEPT IF THERE IS/ARE BENEFITS IN LIEU OF (Why no  National Heroes Day (Last Monday of August)
waiver is allowed in general? Because it is contrary to law, morals, public policy or good  Eid ul-Fitr (Movable Date)
customs or prejudicial to a third person with a right recognized by law)
 Eid ul-Adha (Movable Date)
 BASE PAY WITH INTEGRATED OT PAY is valid provided there is written agreement
 Bonifacio Day (Monday nearest November 30)
- AND - the rates are at least equal to the prescribe rate if separately computed.
 Christmas Day (December 25)
 Compressed Workweek – another instance of waiver of OT Pay
 Rizal Day (Monday nearest December 30)
Requisites: (1) the scheme is expressly and voluntary supported by the majority of
employees (2) DOLE Regional Office is notified (3) For firms using substances, a DOLE
 Holiday Pay Law – applicable to ALL except:
Certification certifying that work beyond 8 hrs is within the health standards. (SHALL
(1) Excluded persons & RETAIL AND SERVICE ESTABLISHMENTS REGULARLY
NOT EXCEED 12 HOURS). Reversion to Normal 8-hr day work is valid
EMPLOYING LESS THAN 10 WORKERS
 Offsetting OT Work with undertime wether on the same day or another day is
PROHIBITED by jurisprudence and statute.
OTHER MUSLIM HOLIDAYS (Regular Holidays for Muslim and Muslim Provinces)  Non-Dimunition of benefits (EXEPTIONS: Correction of error, negotiated benefits, wage
 Amun Jadid (New Year) – First Day of the lunar month of Muharram order compliance, benefits on reimbursement basis, reclassification of position,
 Maulid-un-Nabi (Birthday of Prophet Muhammad) – 12th day of the third lunar month of conditional benefits, productivity incentives
Rabi-ul-Awwal
 Lailatul Isra Wal Mi Rai (Nocturnal Journey and ascension of the Prophet Muhammad) – JOB ORDER CONTRACTING AND LABOR ONLY CONTRACTING
27th day of the 7th lunar month of Rajab Essential Element: Supplying of workers
Confirming Element: (1) Lack of Substantial capital or investment (at least 3M and has NFCC)
 ECOLA (Emergency Cost and Living Allowances is included on the Minimum Wage AND performance of activities directly related to the principal’s main business – OR – (2)
Rate)(Basis in the computation of SIL, OT Pay, NSD, Premium Pay & 13th Month Pay) contractor exercises no control (as to the means & methods)
 RECKONING POINT OF GRANTING HALIDAY PAY IS NOT FROM THE DATE OF
THE PROMULGATION OF THE CHARTERED BANK NOR ON THE EFFECTIVITY OF Essential Element PLUS Confirming Element 1 OR 2 EQUALS Labor Only Contracting
THE LABOR CODE, BUT FROM THE DATE OF THE PROMULGATION OF THE IBAA
CASE (10/23/84) JOB CONTRACTING (Labor Code: With Trilateral Relationship) – Contract Services
Particulars SM (Indirect Employer ABC (Employer)
 Hourly Paid teachers: No pay for regular holiday, but with pay on special public-holiday
Unpaid Salary/Wages Y Y
and other no-class day. Damages X Y
Backwages X Y
 HOLIDAY PAY & SIL REQUIREMENT DOES NOT APPLY TO ESTABLISHMENTS LABOR ONLY CONTRACTING (Civil Code: Without Trilateral Relationship) – Contract of Agency
HIRING LESS THAN 10 PERSONS Particulars SM (Direct Employer) ABC (Agent)
 SERVICE INCENTICE LEAVE – 5 days (who rendered at least 1 year of service) Unpaid Salary/Wages Y X
Damages Y Y
 Teachers on private schools on contract basis are eligible to SIL Backwages Y Y
 Piece rate workers are entitled to SIL & Holiday Pay & 13th month pay NOTE: Solidary Liability
 SIL of Kasambahay not commutable NOTE: In LOC, Agent can be held liable for estafa

---------------------------------------------------------Title 2----------------------------------------------------------------  Cooperatives: Labor Service Cooperatives VS Workers Cooperatives

Wages  ARTICLE 110: In case of bankruptcy, there is preference to wages and monetary claims
Chapter One BUT NOT LIEN! Hence, taxes first before wages and monetary claims (Judicial
Preliminary Matters – Article 97 to 98 declaration of bankruptcy)
 Attorney’s Fees – Extra-ordinary attorney’s fees – not exceeding 10%; Ordinary
 Wage vs. Salary Attorney’s Fees - Quantum Meruit
 Facilities (Maybe deductible; for the benefit of the employee) VS Supplements (Not
deductible; for the benefit of the ER) Chapter Four
Prohibition Regarding Wages – Article 112 to 119
Chapter Two  Non-interference of wages
Minimum Wage Rates – Article 99 to 111  NO deduction of wages except: (1) insurance with consent (2) Union dues authorized
in writing (3) authorized by law
 Minimum Wage Rate Law: Exemptions (1) Household workers. Dh, including family  Loss for damage: Must be fair & reasonable, with due process, and at fault
drivers and persons in personal service of another (2) homeworkers engaged in needle  Work reduction must be made in good faith
work (3) Workers of National Cottage Industries and Development Authority working in
their respective homes (4) workers in cooperatives (4) workers in BMBE’s (Barangay Chapter Five
Micro Business Enterprises-also exempt in income tax) (5) retail establishments Wage Studies, Wage Agreements and Wage Determination – Article 112 to 119
employing NOT MORE THAN 10 employees (6) distressed establishments