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LABOR LAW
REVIEW
Atty. Vanessa P. Encabo
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Labor Legislation – Consists of statutes, regulations and

jurisprudence governing the relations between capital and
labor by:
providing for certain terms and conditions of
employment or
providing a legal framework within which these terms
and conditions and the employment relationships may
be negotiated, adjusted and administered.

Social Legislation – Includes all laws that provide particular

kinds of protection or benefits to society or segments thereof in
furtherance of social justice. In that sense, labor laws are
necessarily social legislation. But social legislation are NOT
necessarily labor legislation.

Basically for promotion public welfare and social justice

Atty. Vanessa P. Encabo

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LABOR LAW CLASSIFICATION

Labor Standards – That which sets out the minimum terms,

conditions and benefits of employment that ER’s must
provide or comply with and to which EE’s are entitled as a
matter of legal right.

Labor Relations – That which defines the status, rights and

duties and the institutional mechanisms that govern the
individual and collective interaction of EMPLOYER and
EMPLOYEES or their representatives.

Welfare Legislation – designed to take care of

contingencies which may affect workers, e.g. where there
is loss of income beyond the worker’s control.

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Matters which fall under the term Labor Law

Statutes passed by the state to promote the welfare of

workers and employees and regulate their relations with
their employers.

Judicial decisions applying and interpreting the aforesaid

statutes.

Rules and regulations issued by administrative agencies

within their legal competence, to implement labor statutes.

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Labor Law and Social Legislation

Enacted pursuant to police power of

state –promote order, safety, health,
morals and general welfare of society.

Not violative of due process and freedom

to contract of employers, resisting the
expansion of the social rights of
employees and workers.

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Constitutional Provisions
Art. II, Sec. 9
The State shall promote a just and dynamic social
order that will ensure the prosperity and
independence of the nation and free the people
from poverty through policies that provide adequate
social services, promote full employment, a rising
standard of living, and an improved quality of life for
all.
Art. II, Sec. 10
The State shall promote social justice in all phases of
national development.
Art. II, Sec. 13
The State recognized the role of the youth in nation-
building and shall promote and protect their physical,
moral, spiritual, intellectual, and social well-being
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Art. II, Sec. 14

The State recognizes the role of women in nation-
building, and shall ensure their fundamental
equality before the law of women and men.

Art. II, Sec. 18

The State affirms labor as a primary social
economic force. It shall protect the rights of
workers and promote their welfare
Art. XIII, Sec. 1
The Congress shall give highest priority to the
enactment of measures that protect and enhance
the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
wealth and political power for the common good.
To this end, the State shall regulate the acquisition,
ownership, use, and disposition of property and its
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increments.
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Art. XIII, Sec. 4,

The State shall, by law, undertake an agrarian reform

program founded on the right of farmers and regular
farmworkers, who are landless, to win collectively or
collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof

Art. XIII, Sec. 11

The State shall adopt an integrated and comprehensive
approach to health development which shall endeavor
to make essential goods, health and other social
Atty. Vanessa P. Encabo
services available to all the people at affordable cost
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Art. XIII, Sec. 3

The State shall afford full protection to labor, local and

overseas, organized and unorganized, and promote full
employment and equality of employment opportunities
for all.

It shall guarantee the rights of all workers to self-

organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right to
strike in accordance with law.

They shall be entitled to security of tenure, humane

conditions of work, and a living wage. They shall also
participate in policy and decision-making processes
affecting their rights and benefits as may be provided
by law.
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The State shall promote the principle of shared

responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes,
including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.

The State shall regulate the relations between workers

and employers, recognizing the right of labor to its just
share in the fruits of production and the right of
enterprises to reasonable returns to investments, and to
expansion and growth.

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Art III Sec 8

The right of the people, including those employed in
the public and private sectors, to form unions,
associations, or societies for purposes not contrary to
law shall not be abridged.

Art XIII Sec14

The State shall protect working women by providing
safe and healthful working conditions, taking into
account their maternal functions, and such facilities
and opportunities that will enhance their welfare
and enable them to realize their full potential in the
service of the nation.

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Social Justice as a guiding principle in labor law may be

so used by courts in sympathy with the working man if it
collides with the equal protection clause of the
Constitution. – As it insures equality between labor and
capital. Labor is in weaker position than capital, thereby
providing equal protection.

Why must the State afford protection to Labor?

Labor, by reason of its economic

dependence upon capital, is deemed
the weaker of the two and needs the
protection of the State.

QUESTION: Is protection of labor means destruction of

capital or employer?

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Calalang vs. Williams

“Social justice is neither communism, nor despotism, nor atomism,

nor anarchy, but the 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. Social justice means the promotion of the welfare
of all the people, the adoption by the Government of measures
calculated to ensure economic stability of all the component
elements of society, through the maintenance of a proper
economic and social equilibrium in the interrelations of the
members of the community, constitutionally, through the adoption
of measures legally justifiable, or extraconstitutionally, through the
exercise of powers underlying the existence of all governments on
the time-honored principle of salus populi est supremo lex.”

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CIVIL CODE PROVISIONS

Art. 1700
The relations between capital and labor are not merely
contractual. They are so impressed with public interest
that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws
on labor unions, collective bargaining, strikes and
lockouts, closed shop, wages, working conditions, hours of
labor and similar subjects.

Art. 1701
Neither capital nor labor shall act oppressively against
the other, or impair the interest or convenience of the
public.

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Art. 1702.
In case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety and
decent living for the laborer
Art. 4 of the Labor Code
All doubts in the implementation and interpretation of
the provisions of this Code, including its implementing
rules and regulations, shall be resolved in favor of
labor.

Being remedial in character, should be

liberally construed in order to further their
purposes

“When conflicting interest of labor and capital are weighed

on the scales of social justice, the heavier influence of the
latter must be counterbalanced by the sympathy and
compassion, the law must accord underprivileged worker”
Eastern Shipping Lines vs POEA 166 SVRA 523
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MANAGEMENT PREROGATIVES
Rights to:
to select workers to be hired and to discharge them for just
and valid cause
to promulgate and enforce reasonable employment rules
and regulations and to modify or amend or revoke the same
to designate the work as well as the employee or employees
to perform it
to transfer and promote employees
to schedule, direct, curtail or control company operations
to introduce and install new or improved money saving
methods, facilities or devices
to create, merge, divide, reclassify and abolish departments
or positions in the company
to sell or close the business

****These must be exercised in good faith,

without discrimination and without abuse of
discretion Atty. Vanessa P. Encabo
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Employer
One for whom employees work in
consideration of wages or salaries.
Natural or Juridical person.

Employee
One who works for an employer; a
person working for salary or wages; any
person in the service of another under
a contract for hire, express or implied,
oral or written.

Always a natural person.

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Characteristics of Employee-Employer Relationship

Contractual in character; by agreement.

Impressed with public interest; labor contracts yield
to the common good.
Subject to special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages
and working conditions, hours of labor and similar
subjects.
Parties enjoined not to act oppressively against each
other or impair the interest or convenience of the
public.
In personam, involves the rendition of personal
service of employee; partakes of master and servant
relationship.

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Employment is a Property right

Upon establishment, employee acquires right to

continue in his employment until he is deprived
thereof in accordance with the requirements of
substantive and procedural due process.

Art. 3 of the Constitution provides:

Section 1. No person shall be deprived of life,

liberty, or property without due process of law, nor
shall any person be denied the equal protection
of the laws.

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Elements of EE-ER relationship

1. the selection and engagement of the
employee
2. the payment of wages
3. the power of dismissal
4. the employer’s power to control the
employee with respect to the means and
methods by which the work is to be
accomplished (Control Test)

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Classes of Workers mentioned in the Labor Code

1. Agricultural and non-agricultural workers

2. Apprentice, Learners and Handicapped workers (Art. 59 to 81)
3. Managerial employees (Art. 82 and 212)
4. Workers paid by results (Art. 82 and 101)
5. Women, minors, househelpers and homeworkers (Art. 130 to 155)
6. Regular, casual and probationary employees (Art.280 and
281)

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Classification of employments covered by the

Labor Code

Nature of activities
1. Agricultural
2. Non-agricultural

Nature of worker’s responsibilities

1. Managerial
2. Supervisory
3. Rank-and-file
Method of determining the worker’s wages
1. Paid on time-basis
2. Paid by results

Importance of workers’ functions to the

business or undertaking of the employer
1. Regular
2. Casual Atty. Vanessa P. Encabo
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Period of employment
1. for an indefinite period
2. for a fixed term
3. Project
3. Specific undertaking
4. Particular Season
5. Probationary

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APPLICABILITY OF THE LABOR CODE

Article 6
All rights and benefits granted to workers under
this Code shall, except as may otherwise be
provided herein, apply alike to all workers,
whether agricultural or non-agricultural

Important points to consider applicability

1. The workers referred to are employees in the private sector.
2. Labor Code will not apply to Government employee,
Civil Service Law govern.
3. In cases of Government owned and Control Corporation:
- If created by special charter – NOT covered.
- If organized under the Corporation Law – covered.
PNOC v Leogardo 175 SCRA 26

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RECRUITMENT
AND
PLACEMENT OF
WORKERS
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Recruitment and placement as defined in Article 13

of the Labor Code
refers to any act of:
Canvassing
Contracting
Hiring or procuring workers
Utilizing
Transporting
Enlisting
Including
contract services
advertisement for employment
referrals
promising employment

Locally or abroad
Whether for profit or not
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The essence of recruitment and placement is OFFER or

PROMISE of employment. Without an offer or promise of
Employment, there is no recruitment activity.

Hence, if there is no recruitment activity, it necessarily

Follows that there is NO crime of ILLEGAL RECRUITMENT

Referral is the act of passing along or forwarding of an applicant

for employment after an interview of a selected applicant to a
selected employer, placement officer or bureau.
People v Goce 247 SCRA 780

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Material Consideration – NOT an essential element

As to whether or not money changed hands is

immaterial. Money is NOT essential to a prosecution for
illegal recruitment because the definition of recruitment
and placement includes the phrase “whether for profit
or not “People v Jamilosa 512 SCRA 340

Who can undertake recruitment and placement?

Only individuals or entities who have been

issued the appropriate “authority” or “license”
can engage in or undertake recruitment and
placement.

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Authority – document issued by the Secretary of

DOLE authorizing a persons or association to
engage in recruitment and placement activities as
a private recruitment entity.

License – document issued to a person or entity to

operate a private employment agency.

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Overseas or Migrant Filipino Workers – any person, 18

years of age or above, as provided by RA 8042, who is
to be engaged, or is engaged, or has been engaged in
a remunerated activity in a state of which the worker is
not a legal resident.

Licensed Manning Agency – any person, partnership or

corporation duly licensed by the Secretary to recruit
and deploy seafarers for maritime employment.

Placement Fee – amount charged by a private

employment agency from a worker for its recruitment
and placement services, as prescribed by the Secretary.

Shall not be charged until the employee has obtained

employment through the latter’s efforts or has actually
commenced employment. (Art32)
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Overseas Employment – employment of a Filipino worker

outside the Philippines, covered by a valid contract.

Valid Employment Contract – individual written

agreement between the principal/employer and the
worker based on the master employment contract as
approved by the POEA.

Citizenship requirement for a person or entity engaged

in the recruitment and placement of workers.

Art. 27. Only Filipino citizens or corporations, partnerships

or entities at least 75% of the authorized and voting
capital stock of which is owned and controlled by
Filipino citizens.

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Not qualified to participate in recruitment and placement of

workers abroad

Section 2, Rule I, Part II, Amended Rules and Regulation on

Overseas Employment.

1. Travel agencies and sales agencies of airline companies (Art

26 Labor Code);

2. Officers or members of the Board of any corporation or

members in a partnership engaged in the business of a travel
agency

3. Corporations and partnerships, when any of its officers,

members of the board or partners, is also an officer, member of
the board of partner of a corporation or partnership engaged
in the business of a travel agency;
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4. Persons, partnerships or corporations which have

derogatory records such as, but not limited to
overcharging of placement or documentation fees, false
documentation, illegal recruitment and swindling or
estafa, or those convicted of crimes involving moral
turpitude;

5. Persons employed in the Department or in other

government offices directly involved in the overseas
employment program, and their relatives within the fourth
degree of consanguinity or affinity; and

6. Persons, partners, officers and Directors of corporations

whose license has been previously cancelled or revoked
for violation of the Labor Code, or its implementing rules,
or other relevant laws, decrees, rules and regulations, and
issuances.
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Direct Hiring of foreign employers of Filipinos banned.

Article 18 of the Labor Code provides “No employer
may hire a Filipino worker for overseas employment
except through the Boards or entities authorized by the
Secretary of Labor. Direct hiring by members of the
diplomatic organizations, international organizations and
such other employers as may be allowed by the
Secretary of Labor is exempted from this provision.

Reasons for ban on Direct-Hiring:

1. Filipino employee may not be assured of the best
possible terms and conditions of employment.
2. Foreign employer must also be protected. Only hires
qualified Filipinos.
3. Mandatory requirements for remittance to the
Philippines of a portion of the worker’s foreign exchange
earnings can easily be evaded by a worker who is
directly hired.
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Nature of liability of the recruitment and placement

agency and its principal.
- Jointly and severally liable with the principal or
foreign based employer for any of the violations of
recruitment agreement and contracts of employment.

Joint and Several Liability

When two or more parties are jointly and severally
liable for a tortious act, each party is independently
liable for the full extent of the injuries stemming from the
tortious act. Thus, if a plaintiff wins a money judgment
against the parties collectively, the plaintiff may collect
the full value of the judgment from any one of them.
That party may then seek contribution from the other
wrong-doers -Wex Legal Dictionary

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Amount and Form of remittance

Under EO 857 December 13, 1982
And Article 22 Labor Code

Seamen and mariners 80% basic salary

Workers of Filipino contractors and 70% basic salary
construction companies
Doctors, engineers, teachers, 70% basic salary
nurses and other professional
workers whose employment
contracts provide for free board and
lodging
All other professionals whose 50% basic salary
employment contracts do not
provide free board and lodging
Domestic and other service 50% basic salary
workers
All other workers not falling under 50% basic salary
the aforementioned categories

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PENALTY FOR FAILURE TO REMIT

WORKERS – suspended or excluded from the list of eligible

workers or overseas employment. Subsequent violation shall
warrant repatriation from job site.

FOREIGN EMPLOYERS – shall be excluded from the overseas

employment program

LOCAL PRIVATE EMPLOYMENT AGENCIES – cancellation or

revocation of their licenses or authority to recruit, without
prejudice to other liabilities under existing laws and regulations

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Who has jurisdiction over the money claims of

Overseas Filipino Workers?
NLRC has original and exclusive
jurisdiction to hear and decide over
money claims of overseas Filipino
workers within 90 calendar days.

Prior to the passage of RA 8042in 1995, POEA has the jurisdiction

to the money claims of OFWs, but it was transferred to NLRC.
(Sec. 10 RA 8042)

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ART 38. ILLEGAL RECRUITMENT (as per RA 8042 as

amended by RA 10022 otherwise known as the
Migrant Workers’ Act of 1995)

ILLEGAL RECRUITMENT- Any act of canvassing, enlisting,

contracting, transporting, utilizing, hiring or procuring workers
and includes referring contract services, promising or
advertising for employment abroad, whether for profit or not
when undertaken by a non-licensee or non-holder of authority.
PROVIDED that any such non-licensee or non-holder of
authority who in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed
so engaged. It shall likewise include the commission of
prohibited acts whether committed by a non-licensee or non-
holder of authority or a licensee or holder of authority.

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PROHIBITED PRACTICES:

a. To charge or accept amount beyond amount allowed by

law
b. To furnish or publish false notice or information in relation to
Recruitment and Placement
c. To give any false notice and information or commit any act
of misrepresentation to secure license or authority
d. To Induce or attempt to induce workers to quit employment
to offer him another except if the transfer is to liberate a
worker from oppressive terms and conditions of
employment (NOTE: it is not necessary that worker was
actually induced or did quit employment)
e. To influence or attempt to influence any person or entity
not to employ any worker who has not applied for
employment in his agency
f. To engage in the recruitment or placement of workers in
jobs harmful to public health or morality or to the dignity of
the Phil. Atty. Vanessa P. Encabo
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g. To obstruct or attempt to obstruct inspection by Secretary

h. Fail to file reports
i. To substitute or alter employment contracts
j. Become officer or Board member of corporation engaged
in travel agency
k. To Withhold or deny travel documents before the
departure for monetary or financial consideration other
than those authorized by the Code.
l. Failure to actually deploy without valid reason as
determined by the DOLE
m. Failure to reimburse expenses incurred by the worker in
connection with his documentation and processing for
purposes of deployment, in cases where the deployment
does not actually take place without the worker’s fault

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THE QUALIFYING CIRCUMSTANCES THAT WOULD MAKE ILLEGAL

RECRUITMENT AS A CRIME INVOLVING ECONOMIC SABOTAGE

1. Illegal Recruitment by a syndicate

a. The offender undertakes either any activity within the

meaning of "recruitment and placement" defined under
Article 13(b), or any of the prohibited practices enumerated
under Art. 34 of the Labor Code;
b. He has no valid license or authority required by law to enable
one to lawfully engage in recruitment and placement of
workers; and
c. The illegal recruitment is committed by a group of three or
more persons conspiring or confederating with one another.
[People v. Gallo, 2010]

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2. Illegal recruitment in large scale

a. Engages in acts of recruitment and placement of workers

defined under Article 13(b) of the Labor Code or in any
prohibited activities under Article 43 of the Labor Code;

a. Has not complied with the guidelines issued by the

Secretary of Labor and Employment, particularly with
respect to the securing of license or an authority to recruit
and deploy workers, either locally or overseas; and

a. Commits the unlawful acts against three or more persons

individually or as a group.

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Important Note:
Three or more complainants must be in a single case

When the Labor Code speaks of illegal recruitment

"committed against three (3) or more persons individually or
as a group," it must be understood as referring to the
number of complainants in each case who are
complainants therein, otherwise, prosecutions for single
crimes of illegal recruitment can be cumulated to make
out a case of large scale illegal recruitment.

In other words, a conviction for large scale illegal

recruitment must be based on a finding in each case of
illegal recruitment of three or more persons whether
individually or as a group. [People vs. Reyes, 1995]

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Illegal recruitment vs estafa

Illegal recruitment and estafa are entirely different
offenses and neither one necessarily includes or is
necessarily included in the other. A person who is
convicted of illegal recruitment may, in addition, be
convicted of estafa by false pretenses or fraudulent acts
under Article 315, paragraph 2(a) of the Revised Penal
Code.
In the same manner, a person acquitted of illegal
recruitment may be held liable for estafa. Double
jeopardy will not set in because illegal recruitment is
malum prohibitum, in which there is no necessity to
prove criminal intent, whereas estafa is malum in se, in
the prosecution of which, proof of criminal intent is
necessary. (PP vs. Rosita Sy 2010)
The distinction between malum in se and malum prohibitum offenses is best
characterized as follows: a malum in se offense is "naturally evil as
adjudged by the sense of a civilized community," whereas a malum Atty. Vanessa P. Encabo
prohibitum offense is wrong only because a statute makes it so
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In People v. Cortez the Court explained that: “In this jurisdiction,

it is settled that a person who commits illegal recruitment may
be charged and convicted separately of illegal recruitment
under the Labor Code and estafa under par. 2(a) of Art. 315 of
the Revised Penal Code. The offense of illegal recruitment is
malum prohibitum where the criminal intent of the accused is
not necessary for conviction, while estafa is malum in se where
the criminal intent of the accused is crucial for conviction.

Conviction for offenses under the Labor Code does not bar
conviction for offenses punishable by other laws. Conversely,
conviction for estafa under par. 2(a) of Art. 315 of the Revised
Penal Code does not bar a conviction for illegal recruitment
under the Labor Code. It follows that one's acquittal of the
crime of estafa will not necessarily result in his acquittal of the
crime of illegal recruitment in large scale, and vice versa.”
People v. Ochoa, 2011

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PENALTIES (for overseas employment)

Simple Illegal Recruitment:

Imprisonment of 12 years and 1 day to 20 years

Fine of P1 million to 2 million

Illegal Recruitment deemed as Economic Sabotage:

Life Imprisonment

Fine of P2 million to 5 million

Important Note:
The penalties for Illegal Recruitment today are the ones provided by Sec. 6 RA 10022 which
provided for higher penalties on Illegal Recruitment than what are provided bty Art. 39 of
the Labor Code. Atty. Vanessa P. Encabo
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VENUE OF ACTIONS ON ILLEGAL RECRUITMENT:

Regional Trial Court of the province or city where the

offense was committed; or

where the offended party resides at the time of the

commission of the offense, at the option of the
complainant

PRESCRIPTIVE PERIOD

Illegal Recruitment cases under RA 8042 shall prescribe

in five (5) years Provided, however, That illegal
recruitment cases involving economic sabotage shall
prescribe in twenty (20) years.

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QUESTION:

WHEN IS THE PRESCRIPTIVE PERIOD

BEGIN TO RUN?

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ANSWER

Prescription shall begin to run from the

day of the commission of the violation
of the law, and if the same be not
known at the time, from the discovery
thereof and institution of judicial
proceedings for its investigation and
punishment.

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ART 40. EMPLOYMENT PERMIT OF NON-RESIDENT

ALIENS
-Foreigners or domestic and foreign employers
desiring to employ aliens must secure employment
permit from the DOLE upon determination of the
non-availability of a person in the Philippines who is
competent, able and willing at the time of the
application to perform the services for which the
alien is desired.

Foreigners/Aliens may not be employed in certain

nationalized business.
( ex. Educational Institutions, Media, Public Utilities)
a non-resident alien worker and the employer shall bind
themselves to train at least 2 Filipino understudies to ensure
transfer of information an technology

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EXCEPTIONS TO THE PROHIBITION:

a. where the Secretary of Justice specifically authorizes

the employment of technical personnel; or

b. where the aliens are elected members of the board of

directors or governing body of corporations or
association in proportion to their allowable
participation in the capital of such entities

c. Enterprises registered under the Omnibus Investment

Code in case of technical, supervisory or adbisory
positions, but for a limited period

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BOOK II
HUMAN
RESOURCE
DEVELOPMENT
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Human Resource Development

• Refers to the process by which the actual and potential labor

force is made systematically to acquire greater knowledge, skills
and capabilities for the nation’s sustained economic and social
growth.
• Important because this will produce skilled and capable workers
which have better opportunities fro employment. With such,
industries can operate efficiently and continuously, thus
economic and social growth is assured.
• Not limited to training workers to serve employers.
• Entrepreneurship also covered.

Manpower – portion of population which has

actual or potential capability to contribute to
the production of goods and services

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APPRENTICESHIP - practical training on the job

supplemented by related theoretical
Instruction
APPRENTICE - worker who is covered by a written
apprenticeship agreement with an individual employer
or any of the entities recognized under this chapter
Qualifications of an Apprentice
• at least 15 years of age; provided those who are
at least 15 years of age but less than eighteen
may be eligible for apprenticeship only in non-
hazardous occupations and the apprenticeship
agreement shall be signed in his behalf by the
parent or guardian or authorized representative
of DOLE.
• vocational aptitude/ capacity for appropriate
test
• ability to comprehend and follow oral and
written instructions Atty. Vanessa P. Encabo
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Requisites for a VALID APPRENTICESHIP

• QUALIFICATIONS OF THE APPRENTICE

• APPRENTICESHIP AGREEMENT DULY EXECUTED
AND SIGNED PROVIDING FOR COMPENSATION
NOT LESS THAN 75% OF THE APPLICABLE
MINIMUM WAGE, EXCEPT ON-THE-JOB TRAINING
(OJT)
• APPRENTICESHIP PROGRAM DULY APPROVED BY
DOLE
• PERIOD OF APPRENTICESHIP SHALL NOT EXCEED
6 MONTHS.

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LEARNERS - persons hired as trainees in semi-skilled and

other industrial occupations which are non-
apprenticeable and which may be learned thru
practical training on the job in a relatively short period
of time which shall not exceed 3 mos.

Allowed employment
Learners may be employed when no
experienced workers are available, the
employment of learners is necessary to
prevent curtailment of employment
opportunities, and the employment does
not create unfair competition in terms of
labor costs or impair or lower working
standards. [Art. 74, LC]

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When learners may be hired:

1. No experienced workers are available;
The employment of learners being necessary
to prevent the curtailment of employment
opportunities; and

2. The employment will neither create unfair

competition in terms of labor costs nor impair
working standards.

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Summary of Rules on APPRENTICE

1. The apprentice must be paid not less than 75% of the

prescribed minimum salary [Art. 61];
Exception: The employer MAY NOT pay any wage if the
apprenticeship training is:
(a)part of the school curriculum,
(b) a requirement for graduation, or
(c) a requirement for board examination [Art. 72]
2. The apprenticeship agreement must be approved by the DOLE
Secretary (without such one shall be deemed a regular
employee) [Nitto Enterprises v. NLRC, G.R. No. 114337, Sept. 29, 1995];
3. The employer is not compelled to continue one’s employment
upon termination of apprenticeship;
4. One-half (1/2) of the value of labor training expenses incurred
for developing the productivity and efficiency of apprentices
of the training cost is deducted from the employer’s income
tax but it shall not exceed 10% of direct labor wage [Art. 71]
Atty. Vanessa P. Encabo
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Summary of Rules on LEARNERSHIP

1. The duration of learnership shall not exceed 3 months

[Art. 73];
2. If the learnership of 3 months is completed, the
employer may be compelled to continue with the
services of the learner as a regular employee [Art.
75(d)];
3. There is a commitment from the employer to employ
the learners if they so desire, as regular employees
upon completion of the learnership [Art. 75(d)];
4. If the learner is dismissed from service without just and
valid cause and without due process after 2 months of
service, he will be deemed as regular employee; and
5. The wages or salary rates of the learners which shall
begin at not less than 75% of the applicable minimum
wage.
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HANDICAPPED WORKERS
(RA 7277 amended by RA 9442)

“Handicap” refers to a disadvantage for a given

individual, resulting from an impairment or a
disability, that limits or prevents the function or
activity, that is considered normal given the age
and sex of the individual.

RIGHTS OF DISABLED WORKERS

Equal opportunity for employment
No disabled person shall be denied access to opportunities
for suitable employment. A qualified disabled employee
shall be subject to the same terms and conditions of
employment and the same compensation, privileges,
benefits, fringe benefits, incentives or allowances as a
qualified able bodied person. [Sec. 5 [par. 1], RA 7277]
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INCENTIVES FOR EMPLOYERS

Tax incentives for employment of disabled persons Private

entities that employ disabled persons who meet the
required skills or qualifications, either as regular employee,
apprentice or learner, shall be entitled to an additional
deduction, from their gross income, equivalent to 25% of
the total amount paid as salaries and wages to disabled
persons: Provided, however, That such entities present
proof as certified by the Department of Labor and
Employment and the Department of Health as to his
disability, skills, and qualifications. [RA 7277, Sec. 8 (b)]

Atty. Vanessa P. Encabo