Labor Law

SOCIAL LEGISLATION
SOCIAL SECURITY
SYSTEM
Definition of Terms

Employer any person, natural, juridical, domestic or foreign, who came in the
Philippines, any or trade, business, industry, undertaking or activity of any kind
and uses the services of another person who is under his orders as regards the
employment except Government and any of its political subdivisions, branches or
instrumentalities, including corporations owned or controlled by the Government.

Employee Any person who performs services for an employer in which whether or
not mental and physical efforts are used and who receives compensation for such
services, where there is an employer-employee relationship.

Self-employed any person whose income is not derived from employment; shall
be both the employer and employee at the same time.
Dependents:
1. The legal spouse entitled by law to receive support from the member;
2. The legitimate, legitimated or legally adopted and illegitimate child who is
unmarried, not gainfully employed and has not reached 21 years of age, he
is congenitally incapacitated or while still a minor has been permanently
incapacitated and incapable of self-support, physically and mentally; and
3. The parent who is receiving regular support from the member.

Compensation all actual remuneration for employment, including the

mandated cost-of-living allowance, as well as the cash value of any
remuneration paid in any medium other than cash except that part of the
remuneration in excess of the maximum salary credit.

Employment any service performed by an employee for his employer.

Beneficiaries the dependent spouse until he or she remarries, the dependent
legitimate, legitimated or legally adopted and illegitimate children who shall
be primary beneficiaries of the member:

1. Provided that the dependent illegitimate children shall be entitled to 50% of

the share of the legitimate, legitimated or legally adopted children;
2. Provided further, in the absence of the legitimated, legally adopted or
legitimate children, illegitimate children shall be entitled to 100% of the
benefits.
3. In their absence, the dependent parents who shall be the secondary
beneficiaries; and
4. In the absence of all of the foregoing, any person designated by the covered
employee as secondary beneficiary.

Contingency - the retirement, death, disability, injury, sickness and maternity

of the member.
Coverage

A. Compulsory (Sec. 9)
1. All employees not over 60 years of age and the employers; and
2.Domestic helpers with monthly income of not less than 1,000 pesos a month;

Limitations:
a. Any benefit earned by the employees under private plans existing at the time of
the approval of the Act shall not be discontinued, reduced or otherwise impaired;
b. Existing private plans shall be integrated with the SSS but if the employer under
such plan is contributing more than what is required by this Act, he shall pay to the
SSS the amount required to him, and he shall continue with his contributions less
the amount paid to SSS;
c. any changes, adjustments, modifications, eliminations or improvements in the
benefits of the remaining private plan after the integration shall be subject to
agreements between the employers and the employees concerned, and
d. the private benefit plan which the employer shall continue for his employees
shall remain under the employers management and control unless there is an
existing agreement to the contrary.
3. Upon such self-employed persons as may be determined by the Commission
including but not limited to the following:
a. all self-employed professionals;
b. partners and single proprietors;
c. actors and actresses, directors, scriptwriters and news correspondents
who do not fall within the definition of the term employee in Section 8 (d) of
this Act;
d. Professional Athletes, coaches, trainers, and jockeys; and
e. Individual Farmers and fishermen.
B. Voluntary
1. Spouses who devote full time to managing, the household and family affairs
(Sec. 9(b));
2. Filipinos employed abroad recruited by foreign-based employees (Sec. 9(c));
3. Persons separate from employment to maintain his right to full benefits
(Sec.11); and
4. Self-employed who realizes no income for a certain month (Sec. 11-A).

C. By Agreement
Any foreign government, international organization, or their wholly-owned
instrumentality employing workers in the Philippines, may enter into an
agreement with the Philippine government for the inclusion of such
employees in the SSS except those already covered by their respective civil
service retirement systems.
Effective Date of Coverage (Sec. 10)
1. Employer on first day of his operation.
2. Employee on the day of his employment.
3. Self-employed upon his registration with SSS.

Effects of Separation from Employment (Sec. 11)

1. Employers contribution on his account ceases;
2. Employees obligation to contribute also ceases at the end of the month of
separation; and
3. Employee shall be credited with all contribution paid on his behalf and entitled
to benefit according to the provisions of this Act.

Effects of Interruption of Business or Professional Income of Self

Employed Individual
1. Shall not be required to pay contributions for that month;
2. However, he may be allowed to continue paying contributions under the same
rules applicable to a separated covered employee member.
Excluded Employment (Sec. 8 (j))
1. Employment purely casual and shall not for the purpose of occupation or
business of the employer;
2. Services performed on or in connection with an alien vessel by an employee
if he is employed when such vessel is outside the Philippines;
3. Service performed in the employ of the Philippine government instrumentality
or agency thereof;
4. Service performed in the employ of a foreign government, international
organization or their wholly-owned instrumentality; and
5. Services performed by temporary employees which may be excluded by
regulation of the Commission.

Note: Employees of bona fide independent contractors shall not be deemed

employees of the employer engaging the service of the said contractors.
Benefits

A. Monthly Pension (Sec. 12)

. Monthly pension shall be the highest of the following:
a. P300 plus 20% or average monthly salary plus 2% of average monthly
salary credit for each credited year of service in excess of 10 years;
b. 40% monthly salary credit; and
c. P1000 provided that the monthly pension shall in no case be paid for an
aggregate amount of less than 60 months.
2. For members with at least 10 years credited service, the minimum pension
shall be P1200; and
3. For members with at least 20 years credited service, the minimum pension
shall be P2400.
A-I. Dependents Pension (Sec. 12-A)
1. Equivalent to 10% of monthly pension or P250, whichever is higher;
2. Payable on account of death, permanent total disability or retirement; and
3. Payable to each conceived child on or before the date of contingency but not
exceeding 5 dependents beginning from the youngest with preference on
legitimate children.

A-II. Retirement Benefits (Sec. 12-B)

1. A member who has paid at least 120 monthly contributions prior to the
semester of retirement shall be entitled to monthly pension as long as he
lives, provided that:
a. He has reached the age 60 years and is already separated from
employment or has ceased to be self-employed; or
b. He has reached the age of 65 years.

Note: Member has the option to receive his 1st 18 monthly pension in lump sum
at a preferential rate of interest as determined by the SSS.
2. A covered member who is 60 years old but was not able to contribute at least
120 monthly contribution prior to the semester of his retirement shall still be
entitled to a lump sum benefit equal to the total contribution paid by him and
on his behalf, PROVIDED, he is separated from employment and is not
continuing payment of contributions to the SSS on his own.

Upon Death of Retired Member (Sec. 12-B(d))

1. His primary beneficiaries as of the date of his retirement shall be entitled to
receive the monthly pension; and
2. If he has no primary beneficiaries and he dies within 60 months from the start
of his monthly pension, secondary beneficiaries shall be entitled to a lump
sum benefit equivalent to the total monthly pensions corresponding to the
balance of the 5-year guaranteed period, excluding the dependents pension.

Suspension of Monthly Pension

Upon the re-employment or resumption of self-employment of a retired
employed who is less that 65 years old.
B. Death Benefits and Permanent Disability Benefits (Sec. 13 & Sec. 13-A)

Death Permanent Total

Disability Benefits
Cause Death Permanent total
disability
Requisite Member has paid at least 36 monthly
contributions
Benefits Monthly Pension
Payable to whom Primary beneficiaries Member
Failure to make 36 Benefits shall be lump sum equivalent to the
monthly payments monthly pension times the number of
monthly contributions pair to SSS or 12 times
the monthly pension, whichever is higher.

In case the deceased has no primary beneficiaries, his secondary

beneficiaries shall be entitled to lump sum benefit equivalent to 36 monthly
pensions.
Death of Permanent Total Disability
1. His primary beneficiaries shall be entitled to the monthly pension;
2. If he has no primary beneficiaries and he dies within 60 months from the start
of his monthly pension, secondary beneficiaries shall be entitled to a lump
sum benefit equivalent to the total monthly pensions corresponding to the
balance of the 5-year guaranteed period, excluding the dependents
pension.

The following are deemed Permanent Total Disabilities:

1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or insanity; and
5. Such cases as determined and approved by the SSS.
C. Funeral Benefits (Sec. 13-B)
In case of death of any member, a funeral grant equivalent to P12000, shall
be paid in cash or in kind to help defray the cost of funeral expenses.

D. Sickness Benefits (Sec. 14)

A daily sickness benefit equivalent to 90% of his average daily salary credit
shall be paid by his employer or by the SSS, if unemployed or self-
employed.

Requirements:
1. A member must have paid at least 3 monthly contributions in the 12-
month period immediately preceding the semester of sickness or injury;
2. Confined for more than 3 days in a hospital or elsewhere with the
approval of the SSS; and
3. All sick leaves of absence with full pay to the credit of the employee
member shall have been exhausted.
Conditions:
1. In no case shall the daily sickness benefit be paid longer than 120 days in 1
calendar year;
2. Nor shall any unused portion of the 120 days of sickness benefit be carried
forward and added to the total number of compensable days allowable in
the subsequent year;
3. The daily sickness benefit shall not be paid more than 240 days on account
of the same confinement; and
4. The employee member shall notify his employer. Or the SSS if unemployed
or self-employed, of the fact of his sickness or injury within 5 calendar days
after the start of his confinement.

Note: The following are exceptions to the requirement of notification:

- Confinement is in the hospital; and
- Became sick or was injured while working or within the premises of the
employer.
E. Maternity Leave Benefit (as amended by R.A. 7322)
Covered female employee is entitled to a daily maternity benefit equivalent
to 100% of her present basic salary, allowances and other benefits or the
cash equivalent of such benefits for 60 days or 78 days in case of caesarian
delivery.

Requirements:
1. There is childbirth, abortion or miscarriage; and
2. She has paid at least 3 monthly contributions.
Conditions:
1. Employee shall notify her employer of her pregnancy and the probable date
of her childbirth, which notice shall be transmitted to the SSS;
2. The payment shall be advanced by the employer in two equal installments
within 30 days from the filing of the maternity leave application;
3. The payment of daily maternity benefits shall be a bar to the recovery of
sickness benefits for the same compensable period of 60 days for the same
childbirth, abortion or miscarriage, or 78 days in case of caesarian delivery;
4. The maternity benefits provided under this Section shall be paid only for the
first 4 deliveries after March 13, 1973;
5. That SSS shall immediately reimburse the employer on 100% of the amount
of maternity benefits advanced to the employee by the employer upon receipt
of satisfactory proof of such payment and legality thereof; and
6. If an employee should give birth or suffer abortion or miscarriage without the
required contributions having been remitted for her by her employer to the SSS,
or without the latter having been previously notified by the employer of the time
of the pregnancy, the employer shall pay to the SSS damages equivalent to the
benefits which said employee would otherwise have been entitled to, and the
SSS shall in turn pay such amount to the employee concernced.
F. Loan
Salary loan, educational loan, housing loan and community hospital loan.

Reserve Fund all revenues of SSS accumulated in a fund not needed to

meet the current administrative and operations expenses incidental to the
carrying out of this act.

Investment Reserve Fund such portions of the Reserve Fund are not
needed to meet the current benefit obligations thereof.

The Commission through such funds may:

1. Finance housing loans of members;
2. Long-term direct individual or group housing loans giving priority to the
low-income groups, up to a maximum of 90% of the appraised value of the
properties to be mortgaged by the borrowers; and
3. in short and medium-term loans to members such as salary, educational,
livelihood, marital, calamity and emergency loans.
Non-transferability of Benefits (Sec. 15)
Such benefits are not transferable and no power of attorney or other document
executed by those entitled thereto, in favor of any agent, attorney or any
other person for the collection thereof on their behalf shall be recognized,
except when they are physically unable to collect personally such benefits.

Exemptions from Tax, Legal Processes and Lien

1. The SSS and all its assets and properties, all contributions collected and all
accruals thereto and income or investment earnings there from as well as all
supplies, equipment, papers or documents shall be exempted from any tax,
assessment, fee, charge, or customs or import duty; and
2. All benefit payments made by the SSS shall likewise be exempt from all
kinds of taxes, fees or charges, and shall not be liable to attachments,
garnishments, levy or seizure by or under any legal or equitable process
whatsoever, either before or after receipt by the person or persons entitled
thereto.
Remedies for Failure to Pay Required Contributions
1. It shall be collected by the SSS in the same manner as taxes are made
collectible under the National Internal Revenue Code;
2. By an action in court, which shall hear and dispose of the case in preference
to any other civil action; and
3. By issuing a warrant to the Sheriff to any province or city commanding him to
levy upon and sell any real and personal property of the debtor. The Sheriffs
sale by virtue of said warrant shall be governed by the same procedure
prescribed for executions against property upon judgments by a court of
record.
Duties of the Employer
1. To pay employers contribution in accordance with the schedule provided in
this Act;
2. To deduct and to remit employees contributions;
3. To immediately report to the SSS the names, ages, civil status, occupations,
salaries and dependents of all his employees who are subject to compulsory
coverage.
4. To keep true and accurate work records for such period and containing such
information as the Commission may prescribe;
5. To require, as a condition to employment, the presentation of a registration
number secured by the prospective employee from the SSS in accordance
with such procedure as the SSS may adopt;
6. To actify the SSS of the confinement within 5 calendar days after receipt of
the notification from the employee member; and
7. To advance in 2 equal monthly installments the maternity leave benefits
within 30 days from the filing of the maternity leave application.
Liabilities of the Employers:
1. The employer shall pay to the SSS damages equivalent to the benefits, which said
employee member would otherwise have been entitled to, for his failure to remit the
required contributions;
2. To pay besides the contribution on, a penalty thereon of 3% per month from the date
the contribution fails due until paid, for his failure to deduct and remit contributions;
3. To pay the SSS damages equivalent to the benefits which said employee member
would have been entitled to has his name been reported on time by the employer to
the SSS, for his failure to report matters required upon him; and
4. To pay to the SSS damages equivalent to the difference between the amount of
benefits to which the employee member of his beneficiary would have been entitled
to had the proper contribution been remitted to the SSS and the amount payable on
the basis of contributions actually remitted, for his misrepresentation of the true date
of employment of the employee member or for remittance to the SSS contributions
less than those required in this Act or for failure to remit any contributions due prior
to the date or contingency.

Note: the right of the employee to institute the necessary action against the employer
who refuses or neglects to remit contributions may be commenced within 20 years
from the time the delinquency is known or assessment is made by the SSS, or from
the time the benefit accrues, as the case may be. The prescriptive period does not
commence when the obligation to pay the premiums accrues.
Settlement of Disputes (Sec. 5)
Jurisdiction: Social Security Commission
Cases Covered: any dispute arising under his Act with respect to:
1. coverage;
2. benefits;
3. contributions;
4. penalty; and
5. Any matters related thereto.

Procedure:
1. Filing, determination and settlement of disputes shall be governed by the rules
and regulations promulgated by the Commission;
2. Shall be heard by:
a. The Commission;
b. Any of its members; or
c. Hearing officers duly authorized by the Commission;
3. Shall be decided within 20 days after the submission of evidence; and
4. Shall be final and executory if no appeal within 15 days from notice of judgment.
Judicial Review
1. Permitted only when all administrative rememdies have been exhausted;
2. Court of Appeals has jurisdiction to review decisions both on questions of
facts and law but if only questions of law are involved, Supreme Court has
the jurisdiction;
3. Commission is deemed to be a party;
4. Heard in summary manner;
5. Take precedence over any cases except criminal case where life
imprisonment or death penalty is imposed;
6. No appeals shall act as a supersedes or a stay of the order of the
Commission unless the Commission itself, or the Court of Appeals or the
Supreme Court, shall also order.
 GOVERNMENT SERVICE
INSURANCE SYSTEM
Coverage
Compulsory upon all employees receiving compensation who have not
reached the compulsory retirement age irrespective of employment status.

Exceptions to the Compulsory Coverage

1. Members of the Armed Forces of the Philippines;
2. Members of the Philippine National Police;
3. Contractuals who have no employer and employee relationship with the
agencies they serve;
4. Purely casual employees.

Note: All members of the GSIS shall have life insurance, retirement, and all
other social security protections such as disability, survivorship, separation,
and unemployment benefits.
Exception: Members of the judiciary and constitutional commissions shall have
life insurance only.

Computation of Service
- Computed from the date of original appointment or election including period
of service at different times under one or more employer, those performed
overseas under the authority of the Republic of the Philippines, and those
that may be prescribed by the GSIS.
- All service credited for retirement, resignation or separation for which
corresponding benefits have been awarded shall be excluded in the
computation of service in case of reinstatement in the service of an
employer and subsequent retirement or separation which it is compensable
under this Act.
Definition of Terms

Employer - . The national government, its political subdivisions, branches, agencies or

instrumentalities including GOCCs and financial institutions with original charters,
the Constitutional Commissions and the Judiciary.

Employee or Member Any person receiving compensation while in the service of an

employer, whether by election or appointment irrespective of the status of
appointment.

Dependents
1. The legitimate spouse dependent for support upon the member or pensioner;
2. The legitimate, legitimated, legally adopted child, including the illegitimate child who
is:
a. unmarried;
b. not gainfully employed;
c. not over the age of majority; or
d. is over the age of majority but incapacitated and incapable of self-support due to a
mental or physical defect acquired prior to age of majority;
3. Parent dependent upon the member for support.
Primary Beneficiary the legal dependent spouse until he or she remarries
and the dependent children.

Secondary Beneficiary the dependent parents and, subject to the restrictions

on dependent children, the legitimate descendants.

Compensation the basic pay or salary received by an employee, pursuant to

his election or appointment, excluding per diems, bonuses, overtime pay,
honoraria, allowances and any other emoluments received in addition to the
basic pay.

Disability any loss or impairment of the normal functions of the physical

and/or mental faculty of a member, which reduces or eliminates his or her
capacity to continue with his or her current gainful occupation or engage in
any other gainful occupation.

Total Disability Complete incapacity to continue with present employment or

engage in any gainful occupation due to the loss or impairment of the normal
functions of the physical and/or mental faculties of the member.
Permanent Total Disability Accrues or arises when recovery from
impairment mentioned in Section 2 (q) (defining disability) is medically
remote.

Temporary Total Disability accrues or arises when impaired physical and/or

mental faculties can be rehabilitated and/or restored to their normal
functions.

Permanent Partial Disability accrues or arises upon the irrevocable loss or

impairment of certain portion/s of the physical faculties, despite which the
number is able to pursue a gainful occupation.
Benefits

General Rule: All members of the GSIS shall have life insurance, retirement, and all
other social security protections such as disability, survivorship, separation, and
unemployment benefits.

Exception: Members of the Judiciary and the Constitutional Commissions shall be

entitled only to life insurance benefits.

A. Monthly Pensions (Sec. 9)

1. 37.5% of the re-valued average monthly compensation; plus
2. 2.5% of said re-valued average monthly compensation for each year of service in
excess of 15 years PROVIDED that the basic monthly pension shall not exceeded
90% of the average monthly compensation;
3. The basic monthly pension may be adjusted upon the recommendation of the
President of the Philippines in accordance with the rules and regulations prescribed
by the GSIS; PROVIDED:
a. the basic monthly pension shall not be less than P1300; and
b. the basic monthly pension for those who have rendered at least 20 years of
services after the effectivity of this Act shall not be less than P2000 a month.
B. Separation Benefits (Sec. 11)

1. Cash payment equivalent to 100% of the average monthly compensation for each year of
service he paid contributions but not less than P12000;

Conditions:
a. Payable upon reaching the age of 60 years;
b. He has resigned or separated from service; and
c. Has rendered at least 3 years but less than 15 years of service.

2. Cash payment equivalent to 18 times basic his monthly pension at the time of resignation
or separation, or an old-age pension benefit equal to the basic monthly pension.

Conditions:
a. Payable monthly upon reaching the age of 60 years;
b. He has resigned or separated from service; and
c. Has rendered at least 15 years of service.

Note: A member separated from the service shall continue to be a member, and shall be
entitled to whatever benefits he has qualified to in the event of any contingency
compensable under this Act.
C. Unemployment or Involuntary Separation Benefits (Sec. 12)
Monthly cash payments of equivalent to 50% of the average monthly
compensation.

Conditions
1. Employee is separated from service due to the abolition of his office or
position; and
2. He has been paying integrated contributions for at least 1 year prior to
separation.
D. Retirement Benefits (Sec. 13)
1. Lump sum payment, payable upon retirement plus an old-age pension
benefit payable monthly for life, upon expiration of the 5-year guaranteed
period covered by the lump sum; or
2. cash payment equivalent to 18 months of his basic monthly pension plus
monthly pension for life payable immediately.

Conditions
a. He has rendered at least 15 years of service;
b. He is at least 60 years of age at the time of retirement; and
c. He is not receiving a monthly pension benefit from permanent total
disability.

Note: retirement is compulsory upon reaching 65 years of age with at least 15

years of service, BUT if he has rendered less than 15 years of service, he
may be allowed to complete the said period.
E. Permanent Total Disability Benefits (Secs. 15-16)

General Conditions: Employee suffers disability not due to his:

- grave misconduct;
- notorious negligence;
- habitual intoxication; and
- willful intention to kill himself or another.

1. Monthly income benefit for life equal to the basic monthly pension.

Conditions:
a. Effective from the date of disability;
b. He is in service at the time of disability;
c. If he is separated from service, he has paid at least 36 monthly contributions
within the 5-year period immediately preceding disability, or has paid a total of at
least 180 monthly contributions prior to the disability;
d. If he is in service and has paid a total of at least 180 monthly contributions, he
shall receive an additional cash payment of 18 times his basic monthly pension; and
e. Member cannot enjoy monthly income benefit and the old-age retirement
simultaneously.
2. Cash payment equivalent to 100% of his average monthly compensation for
each year of service but not less than P12000.

Conditions:
a. Member does not satisfy the conditions under the preceding number; and
b. Has rendered at least 3 years of service at the time of disability.

Suspension of Disability Benefits

1. He is re-employed
2. He recovers from disability; or
3. he failed to present himself for medical examination when required by the
GSIS.
F. Permanent Partial Disability (Sec. 17)
Cash payment in accordance with the schedule prescribed by the GSIS.

Condition: Employee satisfies either (1.b) or (1.c.d.e) under permanent total disability.

G. Temporary Total Disability (Sec. 18)

75% of the current daily compensation for each day or fraction thereof of temporary
disability.

Conditions:
1. Such benefit shall not exceed 120 days in one calendar year;
2. Employee has exhausted all his sick leave credits and collective bargaining
agreement sick leave benefits;
3. He is in service at the time of his disability;
4. If separated, he has rendered at least 3 years of service and paid at least 6 monthly
contributions in the 12-month period immediately preceding the disability;
5. Member cannot enjoy temporary total disability benefit and sick leave pay
simultaneously;
6. If the disability requires more extensive treatment that lasts beyond 120 days, the
payment of the temporary total disability benefit may be extended by the GSIS but not to
exceed a total of 240 days; and
7. Such benefit shall not be less than 70 pesos a day.
Survivorship Benefits (Sec. 20)
1. Basic survivorship pension which is 50% of the basic monthly pension; and
2. Dependent childrens pension not exceeding 50% of the basic monthly
pension.

Death of a Member (Sec. 21)

Upon death of a member, the primary beneficiary shall be entitled to:
1. Survivorship Pension

Conditions:
a. The deceased was in the service at the time of his death;
b. If separated at least 3 years of service at the time of his death and paid
36 monthly contributions within the 5-year period immediately preceding his
death; or
c. If separated from service, he has paid a total of at least 180 monthly
contributions prior to his death.
2. Survivorship Pension plus cash payment equivalent to 100% if his average monthly
compensation for every year of service.

Conditions:
a. Employee was in service at the time of death; and
b. Has rendered at least 3 years of service.

3. Cash payment equivalent to 100% of his average monthly compensation for each year of
service he paid contributions, but not less than P2000.

Conditions:
a. Employee has rendered at least 3 years of service prior to death; but
b. He failed to qualify under the 1 and 2 mentioned above.

Note: If there are no primary beneficiaries, secondary beneficiaries are entitle to:
- Cash payment equivalent to 100% of his average monthly compensation for each year
of service he paid contributions but not less than P12000 PROVIDED that the member
was in service at the time of his death and has rendered at least 3 years of service; and
- In the absence of secondary beneficiaries, such benefits shall be paid to his legal heirs.
I. Funeral Benefits (Sec. 23)
In an amount fixed by the GSIS rules and regulations but should not be less
than P12000, to be increased to at least P18000 after 5 years, payable upon
the death of:
1. An active member;
2. A member who has separated from service, but who may be entitled to
future benefit;
3. A pensioner; or
4. A retiree who at the time of his retirement was of pensionable age.

J. Life Insurance Benefit (Sec. 24)

Compulsory upon all employees except members of the AFP and the PNP.

K. Loan Grant (Sec. 36)

GSIS funds may be invested:
1. In direct housing loans to members and group housing projects secured by
first mortgage giving priority to the low income groups.
2. In short and medium term loans to members such as salary policy,
educational, emergency stock purchase plan and other similar loans.
Adjudication of Claims and Disputes
A. Prescription of Claims (Sec. 28)
4 years from date of contingency except lifetime and retirement benefits.

B. Jurisdiction (Sec. 30)

GSIS has original and exclusive jurisdiction.

C. Appeal (Sec. 31)

1. Under Rule 43 and 45 of the Rules of Court of 1997;
2. Cases pending before the effectivity of the 1997 Rules of Court shall be governed
by the rules in force at that time;
3. Appeal shall take precedence over any case except criminal case where life
imprisonment or death or reclusion perpetua is imposed.
4. Appeal shall not stay the execution of the order or award or unless ordered by the
Board, by the Court of Appeals or by the Supreme Court; and
5. Appeals shall be without prejudice top the special civil action of certiorari when
proper.
D. Execution (Sec. 32)
Any decision or award shall be executed in the same manner as decisions of
RTC.

Exemption from Tax, Legal Process and Lien

The GSIS, its assets, revenues and benefits paid shall be exempt from all
taxes, assessments, fees, charges or duties of all kinds.
DIFFERENCE
BETWEEN SSS AND
GSIS
Social Security System
Covered by the Act
1. Employer Any person, who carries on in the Philippines any trade, business,
industry, undertaking, and uses the services of another person who is under his
orders as regard the employment, EXCEPT THOSE UNDER THE GSIS.
2. Employee Any person who performs services for an employer who receives
compensation for such services, where there is an employer-employee relationship.
3. Self-employed considered as both employer and employee.

Dependents
1. Legal Spouse entitled for support;
2. Child, whether legitimate, legitimated, legally adopted or illegitimate; and
3. Parents dependent for support.

- Unmarried
- Not gainfully employed
Condition for a child to be considered dependent
- Has not reached 21 years of age; or
- Incapable of supporting himself either physically or mentally prior to 21 years
of age or majority age, as the case maybe.

Exception from Coverage

1. Employment purely casual and not for the purpose of occupation or business
of the employer;
2. Services performed on or in connection with an alien vessel by an employee
if he is employed when such vessel is outside the Philippines;
3. Service performed in the employ of the Philippine government,
instrumentality or agency thereof;
4. Services performed in the employ of a foreign government, international
organization, or their wholly-owned instrumentality; and
5. Services performed by temporary employees, which may be excluded by the
regulation of the Commission.
Compensation
All actual remuneration for employment including the mandated cost of living
allowance, as well as the cash value of any remuneration paid in any
medium other than cash except that part of the remuneration in excess of
the maximum salary credit.

Effects of Separation from Employment

1. Employers a contribution on his account ceases;
2. Employees obligation to contribute also ceases at the end of the month of
separation; and
3. Employee shall be credited with all contributions paid on his behalf and
entitled to benefits according to the provisions of this Act.

Reporting Requirements
EMPLOYER
Report to SSS within 30 days from the first day of his operation the following:
name, age, civil status, occupation, average monthly net income, and
dependents.
SELF-EMPLOYED
Report to SSS within 30 days from the first day of his operation the following:
name, age, civil status, occupation, average monthly net income, and
dependents.

Funding
Employers contributions; and Employee or Members Contributions
- Monthly pensions;
- Retirement benefits;
- Permanent disability benefits;
- Death benefits;
- Funeral benefits;
- Loan grant.

Benefits
1. Sickness benefits;
2. Maternity leave benefits; and
3. Dependents pension.
Exemption from Tax, Legal Process or Lien
Property, assets and revenues of the GSIS and SSS are all exempt from taxes
and all benefits paid by SSS or GSIS shall likewise be exempts from taxes,
assessments, fees, charges and duties of all kind.

Dispute Settlement
DISPUTE ARISING FROM:
1. coverage;
2. benefits;
3. contributions;
4. penalties; and
5. Any matter related thereto.

JURISDICTION
Social Security Commission
WHEN TO DECIDE
Mandatory period of 20 days from the submission of evidence

APPEAL
CA Questions of law and facts
SC Questions of law only

Prescriptive Period
10 years from the time the right of action accrues.
Government Service Insurance System

Covered by the Act

1. Employer National government, its political subdivision, branches, agencies or
instrumentalities, including government-owned or controlled corporations with original
charters.
2. Employee Any person receiving compensation while in the service of an employer as
defined herein, whether by election or appointment.

Condition for a child to be considered dependent

COMPULSORY
All employees receiving compensation who have not reached the compulsory retirement age,
irrespective of employment status.

Exception from Coverage

1. Members of the AFP and PNP;
2. Contractual employees, who have no employer-employee relationship with the agency they
serve; and
3. Members of Judiciary and Constitutional Commission, who shall, be covered only by life
insurance coverage ;
4. Purely casual employees.
Compensation
The basic pay or salary received by an employee, pursuant to his election or
appointment, excluding per diems, bonuses, overtime pay, honoraria,
allowance and any other emoluments received in addition to the basic pay.

Effects of Separation from Employment

A member separated from the service shall continue to be a member, and shall
be entitled to whatever benefits he has qualified to in the event of any
contingency compensable under this Act.

Reporting Requirements
EMPLOYER
Report to GSIS the following information on all his covered employees: names,
employment status, positions, salaries and such other matter as determined
by the GSIS.
Benefits
1. Temporary disability benefits;
2. Separation benefits;
3. Unemployment or involuntary separation benefit;
4. Survivorship benefits; and
5. Life Insurance benefits.

Exemption from Tax, Legal Process or Lien

Property, assets and revenues of the GSIS and SSS are all exempt from taxes
and all benefits paid by SSS or GSIS shall likewise be exempts from taxes,
assessments, fees, charges and duties of all kind.

Dispute Settlement
DISPUTE ARISING FROM:
Any dispute arising under this Act and other laws administered by the GSIS.

JURISDICTION
GSIS
WHEN TO DECIDE
30 days from the receipt of the hearing officers finding and recommendations
30days after submission for decision.

APPEAL
CA Rule 43
SC Rule 45

Prescriptive Period
4 years from the date of contingency.
PATERNITY LEAVE ACT
Paternity Leave Benefit
Paternity leave for 7 days with full payment of daily compensation.

Conditions:
1. Legally married to, and is cohabiting with, the woman who deliver the baby;
2. Employee of private or public sector;
3. Only for the first four deliveries of legitimate spouse with whom he is
cohabiting; and
4. Notify his employer of the pregnancy of his legitimate spouse and the
expected date of such delivery.

Note: Delivery shall include childbirth or any miscarriage.

Note: Paternity leave benefits shall not be convertible to case in case it is not
availed of.
RETIREMENT PAY LAW
Coverage
1. All employees in the private sector;
2. Part-time employees;
3. Employees of service;
4. Domestic helpers or persons in the personal service of another.

Note: The law does not cover employees of:

1. Retail Service and agricultural establishments or operations regularly
employing not more than 10 employees; and
2. Government and its political subdivisions; including GOCCs, if they
are covered by the Civil Service Law and its regulations.
When to Retire
1. Upon reaching the retirement age established in the CBA or any other employment
contract.

Retirement Benefits as he may have earned under existing laws and any CBA
and other agreements provided that:
a. It shall not be less than those prescribed by the Retirement Pay Law; and
b. If such benefits are less, the employer shall pay the difference between the
amount due under the Retirement Pay Law and that provided under the CBA or
retirement plan.

2. In the absence of retirement plan or CBA regarding retirement of employee, upon

reaching the age of 60 years or more and has served at least 30 years in the said
establishment. (optional retirement)

Note: Unless the parties provide for broader inclusions, the term 12-months salary
shall mean 15 days 2.5 days representing 1/12 of the 13 th month pay and the cash
equivalent of not more than 5 days of service incentive leaves or a total of 22.5
days for every year of service.
Note: 65 years was declared as the compulsory retirement age

Retirement Plan vis--vis retirement Pay Law

A retirement plan in a company partakes the nature of a contract, with the
employer and the employee as the contracting parties. R.A. No. 7641 only
applies in a situation where:
1. There is no CBA or other applicable employment contract providing for
retirement benefits for an employee; or
2. There is CBA or other applicable employment contract providing for
retirement benefits for an employee, but it is below the requirements set for
by law.

Even if the company does not include 13th month pay and service incentive
leave as part of the salary base, R.A. No. 7641 does not apply where the
employee receives a lump sum of 1 months pay per year of service. The
company already grants to its retiring employee more than what the law
gives which is month salary for every year of service.
ANTI-SEXUAL
HARRASMENT ACT
Complete Title
An Act Declaring Sexual Harassment Unlawful in the Employment
Education or Training Environment and for Other Purposes.

Declaration of Policy
The State shall:
1. Value the dignity of every individual;
2. Enhance the development of its human resources;
3. Guarantee full respect for human rights; and
4. Uphold the dignity of workers, employees, applicants for employment,
students or those undergoing training, instruction or education.

All forms of sexual harassment in the employment, education or training

environment are hereby declared unlawful.
When Sexual harassment Punishable:
1. work-related;
2. Education-related;
3. Training-related

Work, Education or Training-Related Sexual Harassment Defined Who May

Commit
1. employer;
2. employee;
3. manager;
4. supervisor;
5. Agent of the employer;
6. teacher;
7. instructor;
8. professor;
9. coach;
10. trainor; and
11. Any other person who, having authority, influence, or moral ascendancy over
another.
Where Committed
In the work or training or education environment.

How Committed
Generally: Demands, requests or otherwise requires any sexual favor from the
other regardless of whether the demand, request or requirement for
submission is accepted by the object of the said act.

Specifically
A. In a work-related or employment environment, sexual harassment is
committed when:
1. the sexual favor is made as a condition:
a. In the hiring or in the employment;
b. Re-employment or continued employment of said individuals; or
c. In granting said individual favorable compensation, terms,
conditions, promotions or privileges.
 2. The refusal to grant the sexual favor results in limiting, segregating or
classifying the employee, which in any way would discriminate deprive or
diminish employment opportunities or otherwise adversely affect said
employee.
3. The above acts would impair the employees rights and privileges under
existing labor laws; and
4. The above acts would result in an intimidating, hostile or offensive
environment for the employee.

B. In an education on training environment, sexual harassment is

committed:
1. Against one who is under the care, custody or supervision of the offender;
2. Against one whose education, training, apprenticeship or tutorship is
entrusted to the offender;
3. When the sexual favor is made a condition to the giving of a passing grade,
or the granting of honors and grade, or the granting of honors and
scholarships, or the payment of a stipend, allowance or other benefits,
privileges or considerations; and
 4. When the sexual advances results in an intimidating, hostile or offensive
environment for the result, trainee or apprentice.

Note: Any person who directs or induces another to commit any act of sexual harassment
as herein defined, or who cooperates in the commission thereof by another, without
which it would not have been committed, shall also be held liable under this Act.

Duty of the Employer or head of Office in a Work-related, Education or Training

Environment
It is the duty of the employer or head office in a work-related, education or training
environment:
1. To prevent or deter the commission of acts of sexual harassments;
2. To provide the procedures for the resolution, settlement or prosecution of acts of
sexual harassment;
3. Promulgate appropriate rules and regulations in consultation with and jointly by the
employees or students or trainees, through their duly designated representatives,
prescribing the procedure for investigation of sexual harassment cases and the
administrative sanctions therefore;
 4. Create a committee on decorum and investigation of cases harassment
to increase undertanding and prevent incidents of sexual harassment;
and
5. The employer or head of office education or training institution shall
disseminate or post a copy of this Act for the information of all
concerned.

Note: Administrative sanctions shall not be a bat to prosecution in the proper

courts for unlawful acts of sexual harassment.

Liability of the Employer or Head of Office, Education or Training

Institution
Shall be solidarily liable for damages arising from the acts of sexual
harassments committed in the employment, education or training environment
if the employer or head of office, educational or training institution is informed of
such acts by the offended party and no immediate action is taken thereon.
Independent Action for Damages
Nothing in this Act shall preclude the victim of work, education or training-
related sexual harassment from the instituting a separate and independent
action for damages and other affirmative relief.

Penalties
Any person who violates the provision of this Act shall, upon conviction, be
penalized by imprisonment of not less than 1 month nor more than 6
months, or a fine of not less than P10000 nor more than P20000, or both
such fine and imprisonment at the discretion of the court.

Prescription
Any action arising from the violation of the provisions of this Act shall prescribe
in 3 years.
ACT AGAINST CHILD
LABOR
Complete Title
An Act Providing For The Elimination Of The Worst Forms Of Child Labor And
Affording Stronger Protection For The Working Child, Amending For This Purpose
Republic Act No. 7610, As Amended, Known As The Special Protection Of
Children Against Child Abuse, Exploitation And Discrimination Act.

Policy
It is hereby declared to the policy of the State to:
1. Provide special protection to children from all abuse, neglect, cruelty, exploitation
and discrimination and other conditions prejudicial to their development including
child labor and its worst forms;
2. Provide sanctions or their commission and carry out a program for prevention and
deterrence of and crisis intervention in situation of child abuse, exploitation and
discrimination; and
3. Protect and rehabilitate children gravely threatened by circumstances which
affection will affection will affect their survival and development which they have no
control.
Definition of Terms
Child any person under 18 years of age.

Child Labor - any work or activity performed by child that subject him or her to
any form of exploitation that affects his or her health and safety or physical,
mental or psychosocial development.

Working Child any child engaged as follows:

1. When the child is below 18 years of age, in work or economic activity that is
not child labor as defined in the immediately preceding sub-paragraph, and
2. When the child below 15 years of age, a) in work where he or she is directly
under the responsibility of his or her parents or legal guardian and where
only members of the childs family are employed; or b) in public
entertainment or information.

Collective needs of the Family such basic needs as food, shelter, light and
water, clothing, education, medical transportation and other expenditure
items necessary for the survival of the family of the child.
Work Permit the permit secured by the employer, parent or guardian from the
DOLE for any child below 15 years of age in any work allowed under R.A.
9231.

Alternative Learning System a parallel and comparable learning system which

provides a viable alternative to the existing formal education system.

Forced Labor and Slavery the extraction of work or services from any person
by means of enticement, violence, intimidation or threat, use of force or
coercion, including deprivation of freedom, abuse of authority or moral
ascendancy, debt bondage or deception.

Normal Development of the Child the physical, emotional, mental and spiritual
growth of a child within a safe and nurturing environment where he or she is
given adequate nourishment, care and protection and the opportunity to
perform tasks appropriate at each stage of development.
When State May Intervene In Behalf of the Child
1. The parent, guardian, teacher or person having care or custody of the child
fails or is unable to protect the child against abuse, exploitation and
discrimination; or
2. Such acts against the child are committed by the said parent, guardian,
teacher or person having care or custody of the same.

Employment of Children
General Rule: Children below 15 years of age shall not be employed.
Exceptions:
1. When a child works directly under the sole responsibility of his or her parents
or legal guardian and where only members of his or her family are employed.

Conditions:
a. That his or her employment neither endangers his life, safety, health and
morals, nor impairs his normal development; and
b. That the parent or legal guardian shall provide the said minor child with the
prescribed primary and/or secondary education.
2. Where the childs employment or participation in public entertainment or
participation in public entertainment or information through cinema, theater,
radio, television or other forms of media is essential.
Conditions:
a. that the employment contract is concluded by the childs parents or legal
guardian with the express agreement if the child concerned, if possible, and
the approval of DOLE;
b. That the following requirements in all instances are strictly complied with:
i. the employer shall ensure the protection, health, safety, morals and
normal development of the child;
ii. The employer shall institute measure to prevent the childs
exploitation or discrimination taking into account the system and level of
remuneration and the duration and arrangement of working time; and
iii. The employer shall formulate and implement, subject to the approval
and supervision of competent authorities, a continuing program for training
and skills acquisition of the child.
iv. The child is provided with at least the mandatory elementary or
secondary education.
Note: In the above exceptional cases, the employer shall first secure before
engaging such child a WORK PERMIT from DOLE which shall ensure
observance of the above requirements.

- For purposes of this article, the term CHILD shall apply to all persons under
18 years of age.

Hours of Work of a Working Child

1. A child below 15 years of age may be allowed to work not more than 20
hours a week;
Condition: that the work shall not be more than 4 hours at any given day.
2. A child 15 years of age but below 18 shall not be allowed to work for more
than 8 hours a day, and in no case beyond 40 hours a week; and
3. No child below 15 years of age shall be allowed to work between 8 oclock in
the evening and 6 oclock in the morning of the following day and no child 15
years of age but below 18 shall be allowed to work between 10 oclock in the
evening and 6 oclock in the morning of the following day.
Ownership, Usage and Administration of the Working Childs Income
1. The wages, salaries, earning and other income of the working child shall
belong to him or her in ownership and shall be set aside primarily for his or
her support, education or skills acquisition and secondarily to the collective
needs of the family.
Condition: that not more than 20% of the childs income may be used for the
collective needs of the family.
2. The income of the working child and/or the property acquired through the
work of the child shall be administered by both parents. In the absence or
incapacity of either parents, the other parent shall administer the same. In
case both parents are absent or incapacitated, the order of preference on
parental authority, as provided for under the Family Code shall apply.

Trust Fund to Preserve the Part of the Working Childs Income

The parent or legal guardian of a working child below 18 years of age shall set
up a trust fund for at least 30% of the earnings of the child whose wages and
salaries from work and other income amount to at least P200,000 annually,
or which he or she shall render a semi-annual accounting for the fund to
DOLE. The child shall have full control of the trust fund upon reaching the
age of majority.
Prohibition against Worst Forms of Child Labor
Worst forms of child labor shall refer to any of the following (sec. 3):
1. All forms of slavery, as defined under the Anti-trafficking Of Persons Act of
2003 or practices similar to slavery such as sale and trafficking of children,
debt bondage and forced or compulsory labor, including recruitment of
children for use in armed conflict; or
2. The use, procuring, offering or exposing of a child for prostitution for the
production of pornography of for pornographic performances; pr
3. The use, procuring, offering or exposing of a child for illegal or illicit activities,
including the protection and trafficking of dangerous drugs and volatile
substances prohibited under existing laws; or
4. Work which, by its nature or the circumstances in which it is carried out, is
hazardous or likely to be harmful to the health, safety or morals of children
such that it:
a. debases, degrades or demeans the intrinsic worth and dignity of a child
as a human being; or
b. exposes the child to physical, emotional or sexual abuse, or is found to be
highly stressful psychologically or may prejudice morals; or
c. is performed underground, underwater or at dangerous heights; or
d. involves the use of dangerous machinery, equipment and tools such as
power-driven or explosive power-actuated tools; or
e. exposes the child to physical danger, such as but not limited to the
dangerous feasts of balancing physical strength or contortion for which
requires the manual transport of heavy loads; or
f. is performed in an unhealthy environment working conditions, elements,
substances or processes involving ionizing, radiation, the flammable
substances, noxious components and the like, or to extreme temperatures,
noise levels or vibrations; or
g. is performed for particularly difficult conditions; or
h. exposed the child to biological agents wherein bacteria, viruses,
protozoan and other parasites; or
i. involves the manufacture or handling of explosives and other pyrotechnic
products.
Access to Education and Training for Working Children
No child shall be deprived of formal or non-formal education. In all cases of
employment allowed in this Act, the employer shall provide the working child
with access to at least primary and secondary education.

Prohibition on the Employment of Children in Certain Advertisements

No child shall be employed as a model in any advertisement, directly or
indirectly, promoting alcoholic beverages, intoxicating drinks, tobacco and its
by-products, gambling or any form of violence or pornography.

Trust Fund from Fines and Penalties

The fine imposed by the court shall be treated as a Trust Fund, administered by
DOLE and disbursed exclusively for the needs, including the cost of
rehabilitation and reintegration into the mainstream of society of the working
children who are victims of violations of this Act, and for the programs and
projects that will prevent acts of child labor.
Who May File a Complaint on Cases of Unlawful Acts Committed against
Children (Sec. 8)
1. Offended party;
2. Parents or guardians;
3. Ascendants or collateral relatives within the 3rd degree of consanguinity;
4. officer, social worker or representative of a licensed child-caring institution;
5. Officer or social worker of DSWD;
6. Barangay chairman of the place where the violation occurred, where the
child is residing or employed;
7. At least 3 concerned, responsible citizens where the violation occurred.

Jurisdiction (Sec. 9)
The Family Courts shall have original jurisdiction over all cases involving
offenses punishable under this Act.

Note: In cities or provinces where there are no family courts yet, the RTCs and
the MTCs shall have CONCURRENT JURISDICTION depending on the
penalties for the offenses charged.
Preliminary Investigation
Terminated within a period of 30 days from the date of the filing. If the
preliminary investigation establishes a prima facie case, then the
corresponding information shall be filed in court within 48 hours from the
termination of theinvestigation.

Trial
Terminated by the court not later than 90 days from the date of the filing of
information. Decision on said case shall be rendered within a period of 15
days from the date of submission of the case.

Exemption from Filing Fees

When the victim of child labor institutes a separate civil action for the recovery
of civil damages, he or she shall be exempt from payment of filing fees.

Access to Immediate Legal, Medical and Psycho-Social Services

The working child shall have the right to free legal, medical and psycho-social
services to be provided by the State.
13 TH
MONTH PAY LAW
Definition of Terms

13th Month Pay not less than 1/12 of the basic salary of an
employee within a calendar year.

Basic Salary - all remunerations or earnings paid by an employer

to an employee for services rendered by may not include:
1. Cost of living allowance;
2. profit-sharing payments;
3. All allowances and monetary benefits which are not considered or
integrated as part of the regular basic salary of the employee at
the time of the promulgation of the Decree.
Note: However, these salary-related benefits should be included in the
computation of the 13th month pay. If by an individual collective
agreement company practice or policy the same are treated as part
of the basic salary of the employees.

Note: Salesman commission comprising a pre-determined percent of

the selling price of the goods by each salesman are included in the
term basic salary for purposes of computing the 13 th month pay.
However, Commissions of medical representatives do not form part
of basic salary and are not included in the computation of the 13 th
month pay medical representatives are not salesmen because they
did not effect any sale of article at all; additional payments received
partook of the nature of profit-sharing bonuses.
Coverage
A. Employers (Sec. 3)
General Rule: all employees are covered by this Act.
Except:
1. distressed employers such as:
a. those which are currently incurring substantial losses; or
b. In the case of non-profit institutions and organizations, where their income
has consistently declined by more than 40% of their normal income for the
last 2 years.
2. The government and any of its political subdivisions, including GOCCs except
those corporation operating essentially as private subsidiaries or the Government;
3. Employers already paying their employees 13th month pay or more in a calendar
year or its equivalent at the time of this issuance.
Note: Its equivalent includes:
a. Christmas bonus;
b. midyear bonus;
c. profit sharing payments; and
d. Other cash bonuses not less than 1/12 of the basic salary.
 4. Employers of household helpers and persons in the personal service of
another in relation to such workers; and
5. employers of those who are paid on:
a. purely commission basis;
b. boundary basis;
c. task basis; or
d. a fixed amount for performing a specific work, except where the
workers are paid on a piece-rate basis in which case the employer shall be
covered by this insurance insofar as such workers are concerned.

Note: Workers paid on piece- rate basis refer to those who are paid a standard
amount for every piece or unit of words produced that is more or less
regularly replicated, without regard to the time spent in producing the same.
Piece-rate workers are classified into:
1. piece-rate worker working inside the work premises of the employer and are
under the direct supervision of the employer thus entitled to 13th month pay;
and
2. piece-rate workers who work outside the work premises of the employer
whose hours spent in the performance of their work premises of the
employer whose hours spent in the performance of their work cannot be
ascertained with reasonable certainty and are not under the direct
supervision of the employer, thus NOT entitled to 13th month pay.

B. Employees
General Rule: All rank and file employees regardless of the amount of basic
salary that they receive in a month, if their employers are not otherwise
exempted from paying the 13th month pay. Such employees are entitled to
13th month pay regardless of their designation or employment status, and
irrespective of the method by which their wages are paid, PROVIDED that
they have worked for at least 1 month during a calendar year.
 Except:
1. household helpers;
2. employees paid purely on commission basis;
3. employees already receiving 13th month pay;
4. government employees.

Note: part-time employees are entitled to 13 th month pay.

Note: Managerial employees may receive 13th month pay if such payment has
been a company practice.

Time of Payment
Shall be paid not later than December of each year

Non-inclusion in Regular Wage

The benefits granted under his issuance shall not be credited as part of the regular
wage of the employees for purposes of determining overtime and premium pay,
fringe benefits, as well as premium contributions to the State insurance fund,
social security, medicare and private welfare and retirement plans.
Rules on Certain Types of Employees
1. Employees paid by Results
- Employees paid on piece work basis are by law entitled to the 13th month pay;
- Employees paid a fixed or guaranteed wage plus commission are also
entitled to the mandated 13th month pay, based on their total earnings during
the calendar year
2. Those with Multiple Employer
Government employees working part time at a private enterprise, including
private educational institutions, as well as employees working in 2 or more
private firms, whether or full or part time basis, are entitled to the required
13th month pay from all their private employers regardless of their total
earnings from each or all their employees.

Pro-Rated 13th Month Pay

General Rule: Pro-ration of this benefit applies only in cases of resignation or
separation from work, computation should be based on length of service
and not on the actual wage earned by the worker.
Exception: Employees who are paid a guaranteed minimum wage or
commissions earned are entitled to 13th month pay based on total earnings.

Adjudication of Claims
Non-payment of 13th month pay shall be treated as money claims cases.

Note: Differences of opinion on how to compute the 13th month pay is non-
strikeable and a strike held on that ground is illegal.

14th Month Pay

The granting of 14th month pay is a management prerogative and is not legally
demandable. It is basically a bonus and is gratuitous in nature.
MIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT
OF 1995
Definition of Terms

Migrant Worker - persons who is to engaged, is engaged or has been

engaged in a remunerated activity in a state or which he or she is not a legal
resident to be used interchangeably with overseas Filipino worker.

Overseas Filipinos dependents of migrants workers and other Filipino

nationals who are in distress.

Deployment of Migrant Workers

The state shall deploy overseas Filipino workers only in countries where the
rights of Filipino migrant workers are protected.
Recognized guarantee on the part of the receiving country for protection
of overseas Filipino workers:
1. It has existing labor and social law protecting the rights of migrant workers;
2. It is a signatory to multilateral conventions, declarations or resolution relating
to the protection of migrant workers;
3. It has concluded a bilateral agreement or arrangement with the government
protecting the rights of overseas Filipino workers;
4. Acts taking positive concrete measure to protect the rights of migrant
workers.

Termination or Ban on Deployment

The government, in pursuit of the national interest or when public welfare so
requires, may, at anytime, terminate to impose a ban on the deployment of
migrant workers.
Illegal Recruitment (See Art. 38)

Country-Team approach
All officers, representatives and personnel of the Philippine government posted
abroad regardless of their mother agencies shall on a per country basis, act
as one country-team with a mission under the leadership of the
ambassador. The ambassador may recommend to the Sec of DFA the recall
of officers, representatives and personnel of the Philippines government
posted abroad for acts inimical to the national interest such as, but not
limited to, failure to provide the necessary services to project the rights of
the overseas Filipinos.
Jurisdiction

A. NLRC (Sec. 10)

- Original and exclusive jurisdiction over money claims arising out of an
employer-employee relationship or by virtue of any law or contract involving
Filipino workers or overseas deployment including claims for actual, moral,
exemplary and other forms of damages.
- Cases to be decided within 90 calendar days after the filing of the complaint.

Liability: Principal or employer and the recruitment or placement agency for

any and all claims under this section shall be joint and several. The
performance bond to be filed by the recruitment or placement agency, as
provided by law, shall be answerable for all money claims or damages that
may be awarded to the workers. If the recruitment or placement agency is a
juridical being, the corporate officers, directors or partners shall be jointly
and solidary liable with the agency.
B. POEA
Retains original and exclusive jurisdiction to hear and decide:
1. All cases which are administrative in violations of rules and regulations relating
to licensing and registration of recruitment and employment agencies or
entities; and
2. Disciplinary action cases and other special cases, which are administrative in
character, involving employers, principals, contracting partners and Filipino
migrant workers.

Venue: POEA Adjudication Office of DOLE or POEA Regional Office of the place
where the complainant applied or was recruited, at the option of the
complainant.

C. RTC
Criminal action arising from illegal recruitment shall be filed with the RTC of the
province or city where the offense was committed or where the offended party
actually resides at the time of the commission of the offense. The court where
the criminal action is first filed shall acquire jurisdiction to the exclusion of other
courts.
Effects of Termination Overseas Employment without Just, Valid or
Authorized Cause
The following rules are observed:
1. If the contract of employment is BELOW 1 YEAR , the salaries for the
entire unexpired portion of the contract shall be paid;
2. If the contract of employment is 1 YEAR AND ABOVE, then the salaries for
the entire unexpired portion of the contract OR 3 months pay for every year
of the unexpired portion, whichever is lesser, shall be paid.

Note; the date when the termination of employment occurred is material. If the
termination occurred on or after July 15, 1995 apply provisions of R.A. 8042.
Mandatory Periods for Resolution
- The preliminary investigations of cases under this Act shall be terminated
within a period of 30 calendar days from the date of their filing.
- Where the preliminary investigation is conducted by a prosecution officer and
a prima facie case is established, the corresponding information shall be
filed in court within 24 hours from the termination of the investigation.
If the preliminary investigation is conducted by a judge and a prima facie
case is found to exist, the corresponding information shall be filed by the
proper prosecution officer within 48 hours from the date of receipt of the
records of the case.
Repatriation
General Rule:
Repatriation of the worker and the transfer of his personal belongings shall be
the primary responsibility of the agency which recruited or deployed the
worker overseas. The repatriation of remains and transport of the person
belongings of a deceased worker and all costs attendant thereof shall be
borne by the principal and/or the local agency.
Exception:
1. If the termination of employment is due solely to the fault of the worker, the
principal or employer or agency shall not in any manner be responsible for
the repatriation of the former and/or his belongings; and
2. In cases of war, epidemic, disaster or calamities, natural or man-made, and
other similar events, and where the principal or recruitment agency cannot
be identified, the Overseas Workers Welfare Administration (OWWA), in
coordination with appropriate international agencies, shall take charge of the
repatriation.