Labor Law and Social

Legislation

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Pre Week Lecture
November 2, 2015

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Topics to be discussed today:
1. Recruitment and Placement (local and migrant
workers)
2. Househelpers

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3. Employment of Minors
4. Persons with Disability
5. SSS and GSIS laws
6. Limited Portability Law
7. NLRC Rules of Procedure
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Basic Principles in Recruitment
and Placement Applicable to

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Local and Migrant Workers

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 License v. Authority
• License refers to the document issued by the
DOLE Secretary authorizing a person,
partnership or corporation to operate a private
recruitment / manning agency.

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• Authority refers to document issued by the DOLE
Secretary authorizing the officers, personnel,
agents or representatives of a licensed
recruitment / manning agency to conduct
recruitment and placement activities in a place 4

stated in the license or in a specified place.

 I. Recruitment and Placement
Definition: (CECTHPRCPA)
Refers to any act of canvassing, enlisting,
contracting, transporting, hiring or procuring
workers, and includes referrals, contract services,

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promising or advertising for employment, locally or
abroad, whether for profit or not; provided that
any person or entity which, in any manner, offers
or promises for a fee employment to two or more
persons shall be deemed engaged in recruitment
and placement 5
 Elements of Recruitment and
Placement
1. There is a CECTHPRCPA for
employment

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2. Locally or abroad
3. For profit or not

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Definition of Referral
• Act of passing along or forwarding an
applicant after an initial interview to a
selected employer, placement or

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bureau. ( People v. Hu, G.R. No.
182232, October 6, 2008)

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 People v. Panis
The proviso “ provided that any person or entity
which in any manner, offers, or promises for a fee
employment to two or more persons shall be
deemed engaged in recruitment and placement

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= only creates a presumption that an individual is
engaged in recruitment and placement whenever
he is dealing with two or more persons
= but the number of persons dealt with is not an
essential ingredient of the act of recruitment and
placement. 8
 Can anyone engage in
recruitment and placement of
OFWs?
No, the following are disqualified to operate a
recruitment and placement agency:

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1. persons with derogatory records
2. Any official or employee of the DOLE, POEA,
OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA, CFO,
NBI, PNP, MIAA, CAAP and other agencies involved
in the implementation of R.A. No. 8042, as
amended.
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3. Any of his/ her relatives within the 4th civil degree of
consanguinity or affinity.
 Elements of Illegal
Recruitment
1. The Offender undertakes any of the activities within the
meaning of recruitment and placement.
2. The offender has no valid license or authority required

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by law to enable him to lawfully engage in recruitment and
placement of worker.
OR
The offender has a license or authority but he commits any
of the acts enumerated in Section 6 of Republic Act (R.A.)
No. 8042, as amended
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 14 acts considered as Illegal
Recruitment
(a) To charge or accept directly or indirectly any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of
Labor and Employment, or to make a worker pay or acknowledge any amount
greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in

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relation to recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any
act of misrepresentation for the purpose of securing a license or authority
under the Labor Code, or for the purpose of documenting hired workers with
the POEA, which include the act of reprocessing workers through a job order
that pertains to nonexistent work, work different from the actual overseas
work, or work with a different employer whether registered or not with the
POEA;
(d) To include or attempt to induce a worker already employed to quit his
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employment in order to offer him another unless the transfer is designed to
liberate a worker from oppressive terms and conditions of employment;
 14 acts considered as Illegal
Recruitment
(e) To influence or attempt to influence any person or entity not to
employ any worker who has not applied for employment through his
agency or who has formed, joined or supported, or has contacted or is
supported by any union or workers’ organization;
(f) To engage in the recruitment or placement of workers in jobs
harmful to public health or morality or to the dignity of the Republic of

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the Philippines;
(h) To fail to submit reports on the status of employment, placement
vacancies, remittance of foreign exchange earnings, separation from
jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment
contracts approved and verified by the Department of Labor and
Employment from the time of actual signing thereof by the parties up
to and including the period of the expiration of the same without the 12
approval of the Department of Labor and Employment;
 14 acts considered as Illegal
Recruitment
(j) For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation engaged
in travel agency or to be engaged directly or indirectly in the
management of travel agency;
(k) To withhold or deny travel documents from applicant workers
before departure for monetary or financial considerations, or for any

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other reasons, other than those authorized under the Labor Code and
its implementing rules and regulations;
(l) Failure to actually deploy a contracted worker without valid reason
as determined by the Department of Labor and Employment;
(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 “
(n) To allow a non-Filipino citizen to head or manage a licensed 13
recruitment/manning agency.
 Illegal Recruitment by a
syndicate or in large scale

• Illegal recruitment is deemed committed by a

syndicate if carried out by a group of three (3) or

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more persons conspiring or confederating with
one another.
• It is deemed committed in large scale if
committed against three (3) or more persons
individually or as a group.
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Simple Illegal Recruitment and
Economic Sabotage
There is simple illegal recruitment if the
recruitment is carried out by not more than two
persons or committed against not more than two

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persons.

Illegal recruitment when committed by a syndicate

or in large scale shall be considered an offense
involving economic sabotage.
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 Penalties for Illegal
Recruitment
Simple Illegal Recruitment
Any person found guilty of illegal recruitment shall suffer the penalty of
imprisonment of not less than twelve (12) years and one (1) day but
not more than twenty (20) years and a fine of not less than One
million pesos (P1,000,000.00) nor more than Two million pesos
(P2,000,000.00).

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Economic Sabotage
The penalty of life imprisonment and a fine of not less than Two
million pesos (P2,000,000.00) nor more than Five million pesos
(P5,000,000.00) shall be imposed if illegal recruitment constitutes
economic sabotage as defined therein.

Provided, however, That the maximum penalty shall be imposed if the

person illegally recruited is less than eighteen (18) years of age or
committed by a non-licensee or non-holder of authority. 16
In every case, conviction shall cause and carry the automatic revocation
of the license or registration of the recruitment/manning agency,
lending institutions, training school or medical clinic.”
 7 Other Prohibited
Activities
• (1) Grant a loan to an overseas Filipino worker with
interest exceeding eight percent (8%) per annum, which
will be used for payment of legal and allowable
placement fees and make the migrant worker issue,
either personally or through a guarantor or
accommodation party, postdated checks in relation to

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the said loan;
• (2) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to avail
of a loan only from specifically designated institutions,
entities or persons;
• (3) Refuse to condone or renegotiate a loan incurred by
an overseas Filipino worker after the latter’s employment
contract has been prematurely terminated through no 17
fault of his or her own;
 7 Other Prohibited Activities
• (4) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to
undergo health examinations only from specifically
designated medical clinics, institutions, entities or
persons, except in the case of a seafarer whose medical

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examination cost is shouldered by the
principal/shipowner;
• (5) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to
undergo training, seminar, instruction or schooling of any
kind only from specifically designated institutions,
entities or persons, except fpr recommendatory trainings
mandated by principals/shipowners where the latter 18
shoulder the cost of such trainings;
 7 Other Prohibited Activities
• (6) For a suspended recruitment/manning
agency to engage in any kind of recruitment
activity including the processing of pending
workers’ applications; and

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• (7) For a recruitment/manning agency or a
foreign principal/employer to pass on the
overseas Filipino worker or deduct from his or
her salary the payment of the cost of insurance
fees, premium or other insurance related
charges, as provided under the compulsory 19
worker’s insurance coverage.
Penalty for committing any of
the Prohibited Acts
Any person found guilty of any of the prohibited acts shall
suffer the penalty of imprisonment of not less than six (6)
years and one (1) day but not more than twelve (12) years
and a fine of not less than Five hundred thousand pesos
(P500,000.00) nor more than One million pesos

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(P1,000,000.00).

If the offender is an alien, he or she shall, in addition to the

penalties herein prescribed, be deported without further
proceedings. In every case, conviction shall cause and
carry the automatic revocation of the license or
registration of the recruitment/manning agency, lending
institutions, training school or medical clinic. 20
 Who may be held liable for
Illegal Recruitment?
The persons criminally liable are the
principals, accomplices and accessories.

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In case of juridical persons, the officers
having ownership, control, management or
direction of their business who are
responsible for the commission of the
offense and the responsible 21
employees/agents thereof shall be liable.
 Problem
X , a cashier of E recruitment agency
recruited A, B, C and D (applicants) for
overseas employment under the direction

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of her employer (local agency), received the
payments of the applicants, transmitted the
payments to the company treasurer, but
failed to deployed the workers. Can she be
held liable for illegal recruitment?
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 Answer
Yes, all the elements of illegal recruitment are present.

X cannot escape liability by conveniently limiting her

participation as a cashier of E recruitment agency. The

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provisions of Section 6 of R.A. No. 8042, as amended is
unequivocal that illegal recruitment may or may not be for
profit . It is immaterial, therefore, whether X remitted the
placement fees to the agency treasurer or appropriated
them. The provision likewise provides that the persons
criminally liable for illegal recruitment are the principals,
accomplices and accessories. Therefore, X can be held
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liable as a principal by direct participation since she
personally undertook the recruitment of the applicants
without any authority.
Illegal Recruitment and Estafa
• A person may be charged and convicted for both
illegal recruitment and estafa.

• Illegal Recruitment and Estafa are entirely

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different offenses and neither one necessarily
includes or is necessarily included in the other.

• Illegal recruitment is malum prohibitum, while

estafa is mala in se. In the first, criminal intent of
the accused is NOT necessary for conviction. In
the second, such intent is imperative. 24
 Illegal Recruitment v. Estafa
Illegal Recruitment Estafa
ELEMENTS
1. Recruitment and Placement is (Estafa punished under Article 315
undertaken by a non-licensee or (2)(a) of the RPC.
non-holder of authority OR 1. There must be false pretense of
2. A non-licensee or non holder of fraudulent representation as to his

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authority or a licensee or a holder power, influence, qualifications,
of authority commits any acts property, credit, agency, business,
considered as illegal recruitment or imaginary transactions;
2. The false pretense or fraudulent
presentation was made or
executed prior to or simultaneous
with the commission of fraud;
3. Offended party relied on the false
pretense; or fraudulent act and
was induced to part with his 25
money or property;
4. As a result the offended party
suffered damage.
Theory of Imputed Knowledge
The Theory of Imputed Knowledge ascribes
knowledge of the agent to the principal.
The principal is cognizant of a circumstance

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of fact attributed to the agent because his
position or relationship with the latter.

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 Sunace International v. NLRC
FACTS

- Sunace deployed Divina as a DH in Taiwan for a one year

contract.

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- After the expiration of her contract, she continued working for
the foreign principal for two more years.
- When she arrived in Manila, she filed a complaint against
Sunace because she was jailed for three months and she was
underpaid.
- Sunace denied liability because it has no knowledge nor did it
consent to the extension of Divina’s contract.
- Divina insists on Sunace’s liability based on the theory of
imputed knowledge. 27
 Sunace International v. NLRC
RULING

Sunace is not liable. Theory of Imputed Knowledge is not

applicable, because the theory of imputed knowledge ascribes

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the knowledge of the agent (Sunace) to the foreign principal
not the other way around. There being no substantial proof that
Sunace knew of and consented to the bound under the two year
extension, It cannot be said be privy thereto.
Further, there was an implied revocation of Sunace’s agency
relationship with the foreign principal when, after the
termination of the original employment contract, the foreign
principal directly negotiated with Divina and entered into a new 28
and separate contract in Taiwan.
Other Important Provisions in
the Migrant Workers Act
(R.A. No. 8042, as amended)

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Section 3 (a) -Definition of OFW

Overseas Filipino worker refers to a person who is

to be engaged, is engaged or has been engaged in
a remunerated activity in a state of which he or

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she is not a citizen or on board a vessel navigating
the foreign seas other than a government ship
used for military or non-commercial purposes or
on an installation located offshore or on the high
seas; to be used interchangeably with migrant
worker. 30
 Section 10

1. Labor Arbiter has jurisdiction over complaints filed by

OFWS.

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2. The liability of the principal and the placement agency
for any and all claims of OFW is joint and several. If the
recruitment/placement agency is a juridical being, the
corporate officers and directors and partners as the case
may be, shall themselves be jointly and solidarily liable
with the corporation or partnership for the aforesaid
claims and damages 31
 Section 10
3. In case of termination of overseas employment
without just, valid or authorized cause as defined
by law or contract, or any unauthorized
deductions from the migrant worker’s salary, the

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worker shall be entitled to the full reimbursement
of his placement fee and the deductions made
with interest at twelve percent (12%) per annum,
plus his salaries for the unexpired portion of his
employment contract.
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Jurisdiction

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 Saudi Arabian Airlines
(Saudia)v. Rebensencio (Jan.
2015)
FACTS

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Dismissal

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 Saudia v. Rebensencio
RULING

Phil. Courts (LA) has jurisdiction over the case.

1. Doctrine of forum non-conveniens is not a ground for a

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motion to dismiss.
2. Contractual choice of law is not determinative of
jurisdiction. It merely determine what law is applicable in
the case. The Court only applies the doctrine in conflicts of
law cases, where the court may refuse imposition on its
jurisdiction where it is not the most convenient, or available
forum and the parties are not precluded from seeking
remedies elsewhere. 35
 Saudia v. Rebensencio
While the Philippines respects the parties’
autonomy to contract, such respect should not be
so permissive as to lose sight of considerations of
law, morals, good customs, public order or public

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policy. As such the SC considered the provision on
equality of men and women and the provisions of
the Convention on the Elimination of all Forms of
Discrmination against Women (CEDAW) of which
the Phils. is a signatory.
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 Saudia v. Rebensencio
3. All the requisites for the exercise of jurisdiction
are present:

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a) All the parties are based on the Philippines and
all material incidents transpired in this
jurisdiction.
b) The Phil. Tribunals are in the position to make
an intelligent decision as to the law and facts.
c) Phil. Tribunals can enforce its decision.
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 Joint and Solidary Liability of
the Foreign Principal and Local

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Agency

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 Purpose

1. To assure the OFWs immediate and sufficient payment of

what is due them.

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2. To ensure that the local agency to be always on the lookout
against foreign employers that tend to violate labor. Lest they
risk their reputation or finances, local agencies must already
have mechanisms for guarding against unscrupulous foreign
employers even at the level prior to overseas employment
applications

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Joint and Solidary Liability of
Corporate Officers

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 Sto. Tomas v. Salac
FACTS

• Jasmin Cuaresma was deployed by as a staff nurse in Saudi Arabia.

• While in Saudi Arabia Jasmin was raped and killed. Aggrieved, her
parents filed a claim for death and insurance benefits and damages

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against Becmen Service Exporters and Promotion (Becmen) and
White Falcon Services (White Falcon).
• NLRC found Becmen and White Falcon (and the foreign principal)
jointly and severally liable for Jasmin’s death.
• On appeal, the CA further held Becmen’s corporate officers solidarily
liable with their company for their failure to investigate the true
nature of Jasmin’s death.
• Corporate officers of Becmen now assails the constitutionality of the
last sentence of 2nd paragraph of Section 10 of R.A. No. 8042 which 41
holds the corporate directors, officers and partners jointly and
solidarily liable with their company
 Sto. Tomas v. Salac
RULING
It is unconstitutional.

Absent sufficient proof that the corporate officers and directors of

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the erring company had knowledge of and allowed the illegal
recruitment, making them automatically liable would violate their
right to due process of law.
Rule: Pending adjudication of this case, that the liability of
corporate directors and officers is not automatic. To make
them jointly and solidarily liable with their company, there
must be a finding that they were remiss in directing the affairs of
that company, such as sponsoring or tolerating the conduct of 42
illegal activities.
Award for Money Claims, Due
Process Requirement, and
Computation of Legal Interest

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 Sameer Overseas Placement
Agency v. Cabilles

FACTS

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Cabilles was deployed to Taiwan on a one year
contract of employment. Barely one month on her
job, she was dismissed by her employer for
inefficiency. She was repatriated the same day
she was dismissed. Aggrieved, she filed a
complaint for illegal dismissal against Sameer.
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 Sameer Overseas Placement
Agency v. Cabilles
RULING

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1. Cabilles was illegally dismissed.

Applying the principle of Lex Loci

Contractus, foreign principal should comply
with due process requirement, i.e., just
cause and due process (procedure) 45
 Sameer Overseas Placement
Agency v. Cabilles

2. As an illegally dismissed OFW she is

entitled to:

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a) Full reimbursement of her placement fee
plus 12 % interest per annum.
b) Her unpaid salaries for the unexpired
portion of her contract
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 Sameer Overseas Placement
Agency v. Cabilles
Applicability of BSP Circular No. 799.

1. BSP Circular does not supersede Section 10 of R.A.

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No. 8042, as amended. Reimbursement of Placement
fees and salaries unlawfully withheld are still subject
to 12% interest per annum.

2. But the award for the unexpired portion of the

contract is subject to BSP Circular No. 799.
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 Summary of the Application of BSP
Circular No. 799
An award of interest in the concept of actual and compensatory damages, the rate of
interest, as well as the accrual thereof, is imposed, as follows:

1. When the obligation is breached, and it consists in the payment of a sum of money, i.e.,
a loan or forbearance of money, the interest due should be that which may have been
stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the
time it is judicially demanded. In the absence of stipulation, the rate of interest shall be
6% per annum to be computed from default, i.e., from judicial or extrajudicial demand
under and subject to the provisions of Article 1169 of the Civil Code.

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2. When an obligation, not constituting a loan or forbearance of money, is breached, an
interest on the amount of damages awarded may be imposed at the discretion of the
court at the rate of 6% per annum. No interest, however, shall be adjudged on
unliquidated claims or damages, except when or until the demand can be established
with reasonable certainty. Accordingly, where the demand is established with reasonable
certainty, the interest shall begin to run from the time the claim is made judicially or
extrajudicially (Art. 1169, Civil Code), but when such certainty cannot be so reasonably
established at the time the demand is made, the interest shall begin to run only from the
date the judgment of the court is made (at which time the quantification of damages may
be deemed to have been reasonably ascertained). The actual base for the computation of
legal interest shall, in any case, be on the amount finally adjudged.
3. When the judgment of the court awarding a sum of money becomes final and
executory, the rate of legal interest, whether the case falls under paragraph 1 or
paragraph 2, above, shall be 6% per annum from such finality until its satisfaction, this 48
interim period being deemed to be by then an equivalent to a forbearance of credit.
Maersk Filipinas Crewing v.
Avestruz (Feb. 18, 2015)
FACTS
The Captain
found that
the vessel
was not

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properly
cleaned, he
shoved
seaman on
the chest,
the seaman
told him
don’t touch
me!
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 Maersk Filipinas Crewing v.
Avestruz
RULING
Avestruz’s dismissal is illegal. No proof that he is guilty of
insubordination.
Due process was not observed:

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Section 17 of the POEA-SEC requires the "two-notice rule."
An erring seaman is given a written notice of the charge against him
and is afforded an opportunity to explain or defend himself. Should
sanctions be imposed, then a written notice of penalty and the
reasons for it shall be furnished the erring seafarer. It is only in the
exceptional case of clear and existing danger to the safety of the crew
or vessel that the required notices are dispensed with; but just the
same, a complete report should be sent to the manning agency, 50
supported by substantial evidence of the findings.
 Section 23 (c) (6)

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Liability of Medical Clinics

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 Liability of Medical Clinics
In case an overseas Filipino worker is found
to be not medically fit upon his/her
immediate arrival in the country of

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destination, the medical clinic that
conducted the health examination/s of such
overseas Filipino worker shall pay for his or
her repatriation back to the Philippines and
the cost of deployment of such worker.
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 Liability of Medical Clinics
Requirement:

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OFW is found not medically fit
within 15 days upon arrival in
the country of destination.
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 Section 37-A

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Compulsory Insurance

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 Coverage of Compulsory
Insurance
(a) Accidental death, with at least Fifteen thousand United
States dollars (US$15,000.00) survivor’s benefit payable to the
migrant worker’s beneficiaries; Natural death (US$10,000.00)
(b) Permanent total disablement, with at least Seven thousand
five hundred United States dollars (US$7,500.00) disability

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benefit payable to the migrant worker. The following disabilities
shall be deemed permanent: total, complete loss of sight of
both eyes; loss of two(2) limbs at or above the ankles or wrists;
permanent complete paralysis of two (2) limbs; brain injury
resulting to incurable imbecility or insanity;
(c) Repatriation cost of the worker when his/her employment is
terminated without any valid cause, including the transport of
his or her personal belongings. In case of death, the insurance
provider shall arrange and pay for the repatriation or return of 55
the worker’s remains.
 Coverage of Compulsory
Insurance
(d) Subsistence allowance benefit, with at least One
hundred United States dollars (US$100.00) Per month for a
maximum of six (6) months for a migrant worker who is
involved in a case or litigation for the protection of his/her

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rights in the receiving country;
(e) Money claims arising from employer’s liability which
may be awarded or given to the worker in a judgment or
settlement of his or her case in the NLRC. The insurance
coverage for money claims shall be equivalent to at least
three (3) months for every year of the migrant worker’s
employment contract;
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 Coverage of Compulsory
Insurance
(f) Compassionate visit. When a migrant worker is hospitalized
and has been confined for at least seven (7) consecutive days,
he shall be entitled to a compassionate visit by one (1) family
member or a requested individual. The insurance company shall
pay for the transportation cost of the family member or

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requested individual to the major airport closest to the place of
hospitalization of the worker. It is, however, the responsibility of
the family member or requested individual to meet all visa and
travel document requirements;
(g) Medical evacuation. When an adequate medical facility is
not available proximate to the migrant worker, as determined by
the insurance company’s physician and/or a consulting
physician, evacuation under appropriate medical supervision by
the mode of transport necessary shall be undertaken by the 57
insurance provider; and
 Coverage of Compulsory
Insurance
(h) Medical repatriation. When medically necessary as
determined by the attending physician, repatriation under
medical supervision to the migrant worker’s residence shall
be undertaken by the insurance provider at such time that

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the migrant worker is medically cleared for travel by
commercial carrier. If the period to receive medical
clearance to travel exceeds fourteen (14) days from the
date of discharge from the hospital, an alternative
appropriate mode of transportation, such as air
ambulance, may be arranged. Medical and non-medical
escorts may be provided when necessary.
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 Please remember !
Any question or dispute in the
enforcement of any insurance policy
issued under R.A. No. 8042, as

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amended falls within the original and
exclusive jurisdiction of the
Insurance Commission.

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Who is primarily responsible
for an OFW’s repatriation?
The foreign principal or local agency.

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The responsibility to repatriate entails the
obligation on the part of the agency or
principal to advance the repatriation cost
(including airfare ) to immediately
repatriate the worker should the need arise
without prior determination of the cause of 60

termination of worker’s employment.

Exceptions:
1. Emergency Repatriation.
2. Mandatory Repatriation of Underage
Migrant Worker

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3. Where principal or agency cannot be
identified, located, or has ceased
operations.
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 Question
Where do you file a complaint for illegal
recruitment?

Criminal action – RTC where the offense was

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committed or where the offended party actually
resides at the time of the commission of the crime.

Money Claims – LA where the offended party resides

or the principal place of business of the agency, at
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the option of the OFW
 Prescriptive Periods
Simple Illegal Recruitment – 5 years

Illegal recruitment involving economic

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sabotage – 20 years.

Money claims – 3 years.

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Admin actions – 3 years.
 Question
X, a seafarer deployed by T Manning Agency on 1978,
regularly sends monthly remittances to his family through
T manning agency. On 1979, he discovered that his salary
for June 1978 was not remitted by T manning agency to his
family. He called the attention of T manning agency, but

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failed to follow up the same because of his redeployment.
Every time he disembarks from the vessel (after the
expiration of his employment contracts), he follows up the
return of his remittance, but it was not acted upon by T
manning agency. After 7 years or on 1985, he wrote a
demand letter to T manning agency demanding the
payment/ return of his remittance. On the same year, T
manning agency denied the claim. Aggrieved, he filed a 64
complaint before the LA. Will the action prosper?
 Answer
No, the action has not yet prescribed.

A cause of action has three elements, to wit, (1) a right in

favor of the plaintiff by whatever means and under
whatever law it arises or is created; (2) an obligation on the

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part of the named defendant to respect or not to violate
such right; and (3) an act or omission on the part of such
defendant violative of the right of the plaintiff or
constituting a breach of the obligation of the defendant to
the plaintiff.

X’s cause of action accrued only when T Manning agency 65

denied his claim for the payment/ return of his remittance,
that is, on 1985.
Who may suspend or cancel a
license or authority?
For Overseas Employment:

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POEA Administrator and Secretary of Labor.

For local employment:

Regional Director and Secretary of Labor 66

 Question
X filed a complaint for illegal
recruitment (reprocessing) against Y
Co. Thereafter, X executed an affidavit

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of desistance in favor of Y Co. and
moved for the withdrawal of the
complaint. Should the POEA dismiss
the complaint?
67
 Answer
No, X’s affidavit of desistance and motion to
withdraw the complaint shall not bar the POEA
from proceeding with the investigation of the
recruitment violations. The POEA should resolve

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the case on the merits and impose the
appropriate penalties because administrative
cases involves violations of the terms and
conditions of the license to operate a recruitment
agency which is within the ambit of POEA’s
regulatory authority and the X is only a witness of 68
the act complaint of.
 Regulatory Powers of the
Secretary of Labor
Art. 36

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Empowers the Secretary of Labor to restrict
and regulate the recruitment and
placement activities of agencies.

69
 Visitorial Power of the
Secretary of Labor
Article 37

Sec of Labor or his authorized representative may at anytime

inspect the premises, books of account and records of any

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recruitment and placement agency.

Differentiate this with Article 128

Inspection here is for the purpose of whether the employer
complies with labor laws (labor standards)

70
Article 274 (old numbering) for the purpose of inquiring into
the financial activities of a union
 Remittances

Seaman - 80% of basic salary.

Contractors and construction companies – 70%

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Doctors, engineers, and other professionals with
free boarding and lodging – 70%
All other professional without free lodging – 50%
Domestic helpers – 50%
All others – 50%
71
 Important Provisions in
the Rules and Regulations
Governing Private Recruitment

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and Placement Agency (PRPA)
for Local Employment
72
Placement Fee v. Service Fee
Placement fee- charged by the PRPA to the recruit as payment
for placement services.
Limitation:
Should not exceed 20% of the employees 1st month basic salary,

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cannot be charged prior to the actual commencement of
employment.

Service Fee – charged by PRPA to the employer for

employment services.
Limitation
Should not exceed 20% of employees annual basic salary.
73
Cannot be deducted from worker’s salary.
 Section 21.
Replacement of Worker
Replacement of Worker without additional cost only one
within 1 month from he first day the worker reported for
work:

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1. The worker is found suffering from an incurable or
contagious disease as certified by a competent
physician.
2. The worker is physically or mentally incapable of
discharging the minimum normal requirements of the
job.
3. Workers abandons the job, resigns, commits theft or 74
any other act prejudicial to the employer.
 Section 22.
Refund of Service Fee
Employer may refund 75% of the
service fee if the agency fails to

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provide for a replacement after 1
month from receipt of request for
replacement.
75
 Comparison between
Recruitment Agencies
OFW Local Workers

Validity of License 4 years 2 years

Probationary License 1 year will ripen into a - n/a-

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full license if it deploys
100 employees within a
year

Fees to be charged to Placement Fee and Placement Fee

employee Documentation Cost
76

Fees to be paid for the License Fee P50k Cash bond P25K
issuance of a license Escrow Deposit P 1M Surety bond P100k
Kasambahay Law
(R.A. No. 10361)

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77
 Kasambahay Law
This does not apply to:
1. Service providers.
2. Family drivers

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3. Children under foster arrangement
4. Any other person who performs work
occasionally or sporadically on an
occupational basis.
78
Minimum Employable Age
15 years old.

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Cost of Hiring
Shouldered by employer.
79
 Important
Responsibilities of a Private
Employment Agency (PEA)
1. Ensure that Kasambahay is qualified as required by the
employer.

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2. Provide pre-employment orientation briefing to the
Kasambahay and the employer regarding their respective
rights and responsibilities under the law.
3. Assist the Kasambahay in filing his/her complaint or
grievance against the employer.
4. Assume joint and solidary liability with the employer for
the payment of wage-related and other benefits 80
including monthly SSS, pagibig, philhealth contributions.
Basic Rights of a Kasambahay
1. Minimum wage
2. Mandatory benefits, daily and weekly rest
periods, service incentive leave pays, 13th
month pay.

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3. Freedom from interference in the disposal
of wages.
4. Coverage under SSS, Philhealth and Pag-
ibig.
5. Standard Treatment, Board, Lodging and 81

Medical Attendance.
Basic Rights of a Kasambahay
6. Right to Privacy
7. Access to education.
8. Join and form a labor organization

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9. Provided with copy of employment
contract and certificate of employment
10. Terminate the employment.
82
 Problem
X, a household helper, accidentally
dropped her employer’s china, can
the employer deduct the value of

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the china from the X’s salary?

83
 Answer
Yes, provided that the following are present:

1. The Kasambahay is shown to be responsible for the

loss or damage.
2. The Kasamabahay is given reasonable opportunity to

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show cause why deduction should not be made.
3. The total number of such deductions is fair and
reasonable and shall not exceed the actual loss or
damage.
4. The deduction from the wages of the Kasambahay
does not exceed 20% of his /her wages in a month.
5. Employer secures the written consent or authorization 84
of the Kasambahay.
 Problem
X, a household helper, has a crush on E, the
security guard of the subdivision, in order to see
him every day, X asked her employer to allow her
to work at her (employer’s) sari-sari store after

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she finish her nightly chores. Should the employer
grant X’s request?

Answer

Yes, provided that he pay X minimum wage. 85

 Grounds for Termination of E-E
Relationship initiated by the
Kasambahay
1. Verbal or emotional abuse of the Kasambahay by the employer or
any member of the household
2. Inhuman treatment including physical abuse of the Kasambahay

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by the employer or any member of the household
3. Commission of a crime or offense against the Kasambahay by the
employer or any member of the household
4. Violation by the employer of the terms and conditions of he
employment contract and other standards set forth under the IRR.
5. Any disease prejudicial to the health of the Kasambahay, the
employer, or members of the household.
6. Other causes analogous to the foregoing. 86
Pre-Termination of Employment
(a) If the period of employment is specified in the
contract, the parties may mutually agree upon
notice to terminate the contract of
employment before the expiration of its term.

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(b) If the duration is not determined , the
employer or kasambahay may give notice to
end the relationship five days before the
intended termination of employment.
(Regular employee – 30 days written notice is
required by the LC). 87
Grounds for the Termination of
Employment initiated by the
Employer

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Same grounds under Article 282 (old
numbering) of the Labor Code.

88
 Remedy of the Employer if the
Kasambahay leaves without cause
- Any unpaid salary due, not exceeding 15
days of work, shall be forfeited.

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- Employer may recover from the
Kasambahay deployment expenses, if any,
if the services have been terminated with
6 months from employment.
89
 Award given to an illegally
dismissed Kasambahay
Unpaid compensation and indemnity
equivalent to 15 days of work.

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No reinstatement.
No backwages.

90
 Question
X is the household helper of E. X asked E if she
can go on a vacation leave on December 2015. E
refused. X threatened E that if he does not allow
her to go on a vacation leave, she will run away.

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To ensure that X will not leave, E withheld the
payment of X’s salaries.
a) Did E violate any of X’s rights?
b) What entity has jurisdiction over a complaint
that X may file against E?
91
 Answer
1.Yes, E is guilty of economic
abuse.

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2.DOLE Field/Provincial/
Regional Office having
jurisdiction over the
workplace. or LA 92
 Procedure for Settlement/
Disposition of Labor Related
Disputes

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93
 DOLE Regional Office having
jurisdiction over the workplace
and undergoes 30 days SENA to
settle dispute
No settlement
is reached
Complaint
dismissed / case is DOLE Regional/ Field Office will
settled conduct mandatory conference
for 30 days

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DOLE RD issues a
compliance order
Not satisfied with the
order
Decision of the Sec of Labor is File an MR within 10 days
final and executory but in order 94
to file a petition for certiorari
under rule 65, you should file an Appeal to the Sec of Labor
MR with 10 days
Employment
of Minors

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95
Please remember the following
terms:
Child
any person below 18 years old.

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Child labor
refers to any work or economic activity performed
by a child that subjects him or her to any form of
exploitation or is harmful to his/her health, safety
or physical, mental or psychosocial development.
96
Please remember the following
terms:
Working Child

Any child engaged as follows:

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1. When the child is below 18 years old, engaged in work
or economic activity that is not defined as child labor.
2. When the child below 15 years old (1) work where
he/she directly under the responsibility of his parents
or legal guardian and where only members of the
child’s family are employed or in public entertainment
97
or agency.
Please remember the following
terms:

Collective needs of the family -

Refer to such basic needs as food,

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shelter light, water, clothing,
education, medical, transportation and
other expenditure items necessary for
the survival of the family.
98
 Employment of a Child
Minimum Employable Age
15

Exceptions

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1. When the child works under the sole
responsibility of his/her parents, provided that
only members of the child’s family are
employed.
2. When the child’s employment or participation
in public entertainment / information is 99

essential, regardless of the extent of the child’s

Child worker’s working hours
1. Below 15 years old
Not more than 20 hours a week or 4 hours
every day.

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Not allowed to work from 8 pm to 6 am
2. 15 years old but below 18 years old.
Not more than 40 hours a week or 8 hours a
day.
Not allowed to work from 10 om to 6 am. 100
 Question
The net income of Riza Mae (child actor) for the
year 2014 is 10 million pesos. Can Riza Mae’s
mother use 5 million pesos (from Riza’s income) to
purchase a their family home?

JMG
Answer

No, only 20% of Riza Mae’s income may be used

for the collective needs of the family. In this case,
the amount spent by Riza Mae’s mother
101
constitutes 50% of her income.
 Question
Can DOLE order the immediate cessation of the
movie shooting if X, a child actor was asked to
jump from a 5 storey building without the
assistance of a stunt man ?

Answer: yes, this is one the worst forms of child

labor. Exposes the child to physical danger such as,

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but not limited to the dangerous feats of
balancing, physical strength or contortion, or
which requires the manual transport of heavy
loads; . Order the immediate and temporary
closure of the establishment if there is imminent
danger to the life and limb of the child in
accordance with the occupational safety and
health standards. An imminent danger is a
condition or practice that could reasonably be
expected to cause death or serious physical harm. 102
Magna Carta for Disabled
Persons

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103
 Definition of Terms
Disabled Persons
Those suffering from restriction or different
abilities, as a result of a mental, physical or
sensory impairment, to perform an activity in the

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manner or within the range considered normal for
human being.

104
 Impairment v. Handicap
Impairment means loss, dimunition or aberration
of psychological, physiological, or anatomical
structure or function.

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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 an individual.
105
 Qualified Individual with
Disability
An individual with a disability who, with or
without reasonable accommodations, can
perform the essential functions of the

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employment position that such individual
holds or desires.

Example: Deaf mute cash sorters.

106
What are the (employment)
rights of a disabled person?
1. Equal Opportunity of
Employment.
2. Eligible to become learners and

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apprentices
3. Right to Organize.
4. Right against discrimination from
107
employment.
 Problem
Pizza hut has a job opening for a delivery man. It
requires that the applicant should be able to read
and write, with good communication skills, and an
experienced motorcycle driver. X is a deaf mute,

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but an award winning motorcycle driver applied
for the position but his application was denied.
Aggrieved, X claims that Pizza hut discriminated
against him because the qualification standards
used to by Pizza hut were designed to leave out
disabled people like him. Rule on X’s contention. 108
 Answer
X is incorrect, Pizza hut did not use qualification
standards that screen out persons with disability,
because the standards / qualification of being able
to communicate with others (good

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communication skills) is necessary for the position
of a delivery man. The job of a delivery entails not
only delivering the pizza at the doorstep of its
customers, but also, verbally communicating to
these customers that the pizza is delivered and
demanding for its payment. 109
 Example of Acts of
Discrimination
1. Dismissing a disabled employee by reason of his disability
unless the employer can prove that he impairs the
satisfactory performance of the work involved to the
prejudice of the business. Provided that the employer first
sought to provide reasonable accommodation for disabled

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person.
2. Providing a lesser wage to a person with disability.
3. Favoring non-disabled employee from a qualified disabled
employee with respect to training, opportunities, study
grants solely on the basis of a person’s disability.
4. Re-assigning or transferring a disabled employee to a job or
position he cannot perform because of his disability 110
 Incentives of Employers
1. Employer employing disabled persons are
entitled to an additional deduction, from their
gross income, an amount equivalent to 25% of the
total amount paid as salaries and wages to a

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disabled person.

2. Employers who modified or improved their

physical facilities to provide reasonable
accommodation to disable persons is entitled to an
additional deduction, an amount equivalent to 50% 111
of the direct costs of improvements and
modifications.
SSS Law

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112
 Who are covered ?
Compulsory coverage:
• All employees not over 60 years of age and their employers
• Domestic Helpers.
• Self employed
• Partners and single proprietors of businesses.
•

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Actors and Actresses, directors, news correspondents.
• Professional Athletes, Coaches, trainers, jockeys
• Individual farmers, and fishermen.

Voluntary Coverage:
• Spouses who devote full time to managing the house
household and family affair.
• OFWs 113
 Effective date of coverage
Employees – first day of
employment

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Employer- first day of operation.

Self-employed – upon registration

with SSS 114
 What are the benefits offered
by SSS?
1. Monthly pensions
2. Dependent’s pension

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3. Retirement Benefit
4. Death Benefit
5. Permanent Disability Benefit
6. Funeral Benefit
7. Sickness Benefit
8. Maternity Benefit 115
Maternity Benefits

equivalent to one
hundred percent
(100%) of her

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present basic salary,
allowances and
other benefits or the
cash equivalent of
such benefits for 60
days for normal
delivery and 78 days 116
for caesarian
delivery.
 Requirements
1. Female SSS member;
2. Who paid at least 3 monthly contributions in the 12 month period
preceeding the semester of her childbirth, abortion or miscarriage
and who is currently employed;
3. Employee notified her employer of her pregnancy and the
probable date of her childbirth which notice shall be transmitted

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to the SSS in accordance with the rules and regulations it may
provide;
4. Payment is advanced by the employer in two equal installments
within thirty (30) days from the filing of the maternity leave
application;
5. payment of daily maternity benefits shall be a bar to the recovery
of sickness benefits provided by this Act for the same
compensable period of sixty (60) days for the same childbirth,
abortion, or miscarriage; and 117
6. Applicable only to the first four deliveries.
 Sickness Benefits
How does an SSS member qualify for the sickness benefit?
1. unable to work due to sickness or injury and confined either
in a hospital or at home for at least four days;
2. at least three months of contributions within the 12 month

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period immediately before the semester of sickness has
been paid;
3. all company sick leaves with pay for the current year has
been used up;
4. the employer has been notified, or, if a separated, voluntary
or self-employed member, the SSS directly.

118
 Notification Requirement
• Who should an employee notify regarding his sickness or
injury?
• A member should notify the employer within five (5) calendar
days after the start of sickness or injury. The employer, in turn,
must notify the SSS of the confinement within (5) calendar

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days after receipt of the notification from the employee
member.
• Notification to the employer is not necessary if the member’s
confinement is in a hospital or if the member got sick or was
injured while working or was within the company premises. In
this case, the employer must notify the SSS within five (5)
calendar days from the start of the employee’s sickness or
119
injury while working or was within the company premises.
 Effect of failure or delay in
notification
• If the employee notifies the employer, or the SSS, in the case of an
unemployed, self-employed or voluntary paying member, beyond
the prescribed five-day period, the confinement shall be deemed to
have started not earlier than the fifth day immediately preceding
the date of notification.

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• If the employer notifies the SSS beyond the five (5) calendar days
after the receipt of the notification from the employee, the
employer shall be reimbursed only for each day of confinement
starting from the 10th calendar day immediately preceding the date
of notification to the SSS.
• If the employee has given the required notification to the employer,
but the employer fails to notify the SSS of the confinement within
the prescribed period resulting in the reduction of the benefit or
denial of the claim, the employer shall have no right to recover the 120
daily sickness allowance advanced to the employee.
 JMG
Disability Benefits
This is paid to members who are suffering from
permanent partial and permanent total
disabilities who has paid at least 36 monthly
contributions to the SSS prior to the semester of
121
disability
 Type of Disabilities
Permanent Partial Disabilities
A complete and permanent loss or use of any of the following body
parts and does not totally prevent a member from engaging in any
gainful occupation, to wit: one thumb, one index finger, one middle
finger, one hand, one arm, one foot, one leg, one ear, hearing in one

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ear, sight of one ear, both ears..
Permanent Total Disabilities
The following fall under permanent total disability:
complete loss of sight of both eyes; loss of two limbs at or above the
ankle or wrists; permanent complete paralysis of two limbs; brain
injury resulting to incurable imbecility or insanity; and such cases as
determined and approved by the SSS.
122
What will happen to the monthly pension
in case the pensioner gets re-employed,
resumes self-employment, recovers from
his permanent total disability or his
failure to present himself/herself for
examination upon notice by SSS?

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The monthly of the member and the
dependent’s pension will be suspended upon
the reemployment or resumption of self-
employment or the recovery of the disabled
member from permanent total disability or
failure to present himself/herself for 123
examination at least once a year upon notice
by SSS
 Retirement Benefits
Requirements:
A member who is 60 years old,
separated form employment or
ceased to be self-employed, and
has paid at least 120 monthly

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contributions prior to the
semester of retirement.
OR A member who is 65 years
old whether employed or not
and has paid at least 120
monthly contributions prior to 124

the semester of retirement.

 What happens when the
retirement pensioner resumes
employment?
The monthly pension shall be suspended upon

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the re-employment or resumption of self-
employed of a retired member who is less than
65 years old. The member shall again be
subjected to compulsory coverage. At 65 year old
whether employed or not, he can already claim
for retirement benefit.
125
Aside from the retirement benefit,
what else can a retiree receive?
The retiree is entitled to a 13th month pension
payable every December.

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and

The legitimate, legitimated, or legally adopted

and illegitimate children, conceive on or before
the date of retirement of a retiree will each
receive dependents’ pension equivalent to 10
per cent of the member’s monthly pension or
P250. 126
Death Benefits and beneficiaries
Primary Beneficiaries

1. Legitimate dependent
spouse until the

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persons remarries
2. Dependent
legitimate,
Secondary beneficiaries legitimated, legally
adopted and illegal
1. Dependent parents children who are not 127
yet 21 years old.
 Question
Florante is a SSS member. His beneficiaries are his
wife (Teresa) and his three children. Florante and
Teresa separated. Teresa had affairs with different
men. Subsequently, Florante died. Teresa filed a

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claim for death benefits. SSS denied her claim.
Was SSS correct? Explain.

128
 Answer
SSS was correct. A spouse who claims entitlement to death
benefits as a primary beneficiary under the SSS law must
establish that (1) he/ she is the legitimate spouse; and (2) he/
she is dependent upon the member for support.

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The word dependent means as one who derives his/her main
support from another, relying on, or subject to someone else for
support.; not able to exist or sustain oneself, or to perform
anything without the will power, or aid of someone else.

In this case, there is no proof that Teresa was dependent for

support at the time Florante died. 129
 Mendoza v. People
• No discretion or alternative is granted respondent Commission in the
enforcement of the law’s mandate that the employer who fails to comply with
his legal obligation to remit the premiums to the System within the prescribed
period shall pay a penalty of three 3% per month. The prescribed penalty is
evidently of a punitive character, provided by the legislature to assure that
employers do not take lightly the State’s exercise of the police power in the
implementation of the Republic’s declared policy ‘to develop, establish gradually
and perfect a social security system which shall be suitable to the needs of the

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people throughout the Philippines and (to) provide protection to employers
against the hazards of disability, sickness, old age and death.’[Section 2, Social
Security Act; Roman Catholic Archbishop v. Social Security Commission, 1 SCRA
10, January 20, 1961] In this concept, good faith or bad faith is rendered
irrelevant, since the law makes no distinction between an employer who
professes good reasons for delaying the remittance of premiums and another
who deliberately disregards the legal duty imposed upon him to make such
remittance. From the moment the remittance of premiums due is delayed, the
penalty immediately attaches to the delayed premium payments by force of
law.

• Failure to comply with the law being malum prohibitum, intent to 130
commit it or good faith is immaterial.
 Question
A married B in 1987. He (A) registered
in SSS form that he is married to B. In
1995, A married C, he filed another

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SSS form indicating that is married to C.
Thereafter, A died. C filed a claim for
death benefits before the SSS. Should
SSS grant the same?
131
 Answer
No, Although the SSC is not intrinsically empowered to determine the
validity of marriages, it is required by Section 4(b) (7) of R.A. No. 8282 to
examine available statistical and economic data to ensure that the
benefits fall into the rightful beneficiaries. Precisely, the investigations
conducted by SSS are appropriate in order to ensure that the benefits
provided under the SS Law is of no moment that the first wife, B, did not
participate or oppose C’s claim. xxx It is not hard to see that such

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measure is necessary for the system’s proper administration, otherwise,
it will be swamped with bogus claims that will pointlessly deplete its
funds. Such scenario will certainly frustrate the purpose of the law
which is to provide covered employees and their families protection
against the hazards of disability, sickness, old age and death, with a view
to promoting their well-being in the spirit of social justice.
The existence of two forms on two different dates, two different
women as his spouse is already an indication that only one of them can
be the legal spouse. For said reason, the denial of C’s claim by the SSC 132
was correct.
GSIS Law

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133
Who are covered?
All government employees receiving compensation
who have not reached the compulsory age of
retirement. (compulsory)

Exclusions:

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1. Members of the AFP
2. Members of the PNP
3. Contractual employees who have no employer-
employee relationship with the agencies they serve.
4. Members of the judiciary and constitutional
commission. (they shall only have life insurance) 134
 Benefits
1. Monthly pensions
2. Separation benefits
3. Involuntary separation benefits

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4. Retirement benefits
-A member has rendered 15 years of service
-60 years old
-Not receiving a monthly pension from permanent
total disability
135
 Benefits
5. Survivorship benefits
Primary beneficiaries are entitled to
receive it.

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6. Funeral Benefits
7. Life insurance benefits.
136
 Benefits
8. Disability Benefits

(a) Permanent disability benefits

1. must be in service at the time of disability.

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2. if separated must have paid 36 monthly
contribution during the 5 year period preceding the
disability. Or 180 contributions prior of his disability.
(but if has not complied with 1 or 2, but he has
rendered 3 years of service, )
(b) Temporary disability benefits
137
(c) Non schedule disability (disabilities not listed in
the schedule of total/ partial disability).
 But please remember!
Disabilities caused by grave misconduct, notorious
negligence, habitual intoxication or willful
intention to kill himself or another are not entitled
to any disability benefits

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A member cannot enjoy the temporary total
disability benefit and sick leave pay
simultaneously.
138
Limited Portability Law

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139
 Definition of Terms

Portability refers to the transfer of funds for the

account and benefit of a worker who transfers
from one system to the other.

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Totalization refers to the process of adding up the
periods of creditable services or contributions
under each of the Systems, for purposes of
140
eligibility and computation of benefits.
 Limited Portability Law
A covered worker who transfers employment from
one sector to another or is employed in both
sectors shall have his credible services or
contributions in both Systems credited to his

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service or contribution record in each of the
Systems and shall be totalized for purposes of old-
age, disability, survivorship and other benefits in
case the covered member does not qualify for
such benefits in either or both Systems without
totalization: Provided, however, That overlapping
periods of membership shall be credited only 141
once for purposes of totalization.
Employees Compensation
Program

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142
 Nature of EC benefits
The Employees' Compensation (EC) benefits or
disability benefits is a compensation package for
public and private sector employees and their
dependents in the event of work-related injury,

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sickness, disability or death. The EC is a purely
employer-based contribution benefit. Thus, the
employee is not required to contribute any amount
to the program. He does not have to litigate his
right to compensation. All he has to do is to file a
claim with the ECC who determines whether or not 143
he should be paid any compensation
Conditions for Compensability
1. Injury must be the result of accident arising
out of and in the course of employment.
2. Sickness must be listed /considered an

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"occupational disease"; or even if not listed as
one, it must be shown that the risk of contracting
the sickness is increased by the working
conditions.
3. Disability/Death is caused by work-connected
injury or sickness
144
 When not compensable
When the injury, illness, death, or disability
is caused by :
1. Intoxication or drunkenness

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2. Willful intention to injure or kill himself or
another
3. Notorious negligence
4. Not work-related
145
 Coverage

1. All employers
2. Every employee not over 60

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years of age
3. Employee covered by GSIS ad
SSS..
146
 Disability Benefits
Disability benefits are benefits granted to a member due to the
loss or reduction in earning capacity caused by a loss or
impairment of the normal functions of the employee's physical
and/or mental faculties as a result of an injury or disease.

How do we determine loss in earning capacity?

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• The loss in earning capacity shall be determined on the basis of the
following:
1. The employee's actual loss of income from the usual occupation
2. The capacity to engage in any other gainful occupation because
of impairment
147
 Classification of Disabilities
. Permanent Total
1

Permanent - inability of a worker to perform his job for more than 120
days regardless of whether or not he loses the use of any parts of his
body.

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Total disability – disablement of an employee to earn wages in the same
kind of work, or work of a similar nature that he was trained for, or
accustomed to perform, or any kind of work which a person of his
mentality and attainment could do.

2. Permanent Partial- occurs when an employee loses the

use of any particular anatomical part of his body which disables him
to continue with his former work. 148
 Classification of Disabilities
3. Temporary Total- is temporary if as a result of
the injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period of NOT exceeding 120 days except when

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such disability still requires medical treatment
beyond 120 days but not to exceed 240 days.

149
 Vicente v. ECC
It may therefore be inferred from the Court's pronouncements that
while "permanent total disability" invariably results in an employee's
loss of work or inability to perform his usual work, "permanent partial
disability," on the other hand, occurs when an employee loses the use
of any particular anatomical part of his body which disables him to
continue with his former work. Stated otherwise, the test of whether

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or not an employee suffers from "permanent total disability" is a
showing of the capacity of the employee to continue performing his
work notwithstanding the disability he incurred.
Thus, if by reason of the injury or sickness he sustained, the employee
is unable to perform his customary job for more than 120 days and he
does not come within the coverage of Rule X of the Amended Rules on
Employees Compensability (which, in a more detailed manner,
describes what constitutes temporary total disability), then the said
employee undoubtedly suffers from "permanent total disability" 150
regardless of whether or not he loses the use of any part of his body.
 Problem
O, an abled seaman, suffered injuries while on
board the vessel. Upon arrival of the vessel at the
port of Manila, O immediately went to the
manning agency, where he was referred to X, the

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company designated physician. X treated O for a
period of 9 months . After the treatment, X failed
to give any disability rating against O nor declared
him fit to work. Thus, O filed a claim for a
permanent total disability benefits. Will the action
prosper? 151
 Answer
Yes, O is entitled to receive permanent total
disability benefits.

Case law instructs that, if after the lapse of the

240-day period, the seafarer is still incapacitated

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to perform his usual sea duties and the company-
designated physician had not yet declared him fit
to work or permanently disabled, whether total or
permanent, the conclusive presumption that the
seafarer is totally and permanently disabled arises.

In this case, O has been treated by X for a period

of 270 days. 152
NLRC Rules of Procedure

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153
 Case Flow in the NLRC
NLRC Issuance of
complaint Summons
section

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Filing of Mandatory
position conference
No settlement
Decision of LA
paper and
reply Settlement is
reached
Appeal to the
Commission Case dismissed

154
Decision of the Order on Case is
Commission MR MR final
 Case Flow in the NLRC
LA of
Decision that has Pre -execution
origin Judgment not
become final and Conference
satisfied
executory

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Petition for LA issues a Writ
Certiorari will of Execution
not stop the
proceedings

Any Orders during the execution proceedings

are not subject an appeal. If aggrieved, avail
Rule XII.
155
Significant Provisions of the
NLRC Rules

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156
Can non-lawyers appear before
the LA?
Yes,

(1) if he/she represents himself/herself as party to the case;

(2) he/she represents a legitimate labor organization;

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(3) He / she represents a member or members of a legitimate
labor organization that is existing within the employer’s
establishment, who are parties to the case;
(4) he/she represents a member or members of a legitimate
labor organization that is existing within the employer’s
establishment, who are parties to the case.
A corporation or establishment which is a party to the case may
be represented by the owner or its president or any other 157
authorized person
 Jurisdiction of LA
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that
workers may file involving wages, rates of pay, hours of work and other
terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages

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arising from employer-employee relations;
5. Cases arising from any violation of Article 264 of the Labor Code, as
amended, including questions involving the legality of strikes and
lockouts;
6. Except claims for employees compensation not included in the next
succeeding paragraph, social security, medicare, and maternity
benefits, all other claims arising from employer-employee relations,
including those of persons in domestic or household service, involving
an amount exceeding Five Thousand Pesos (P5,000.00), whether or
not accompanied with a claim for reinstatement;
158
 Jurisdiction of LA
7. Wage distortion disputes in unorganized establishments not
voluntarily settled by the parties pursuant to Republic Act No.
6727;
8. Enforcement of compromise agreements when there is non-
compliance by any of the parties pursuant to Article 227 of the

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Labor Code, as amended;
9. Money claims arising out of employer-employee relationship
or by virtue of any law or contract, involving Filipino workers for
overseas deployment, including claims for actual, moral,
exemplary and other forms of damages as provided by Section
10 of RA 8042, as amended by RA 10022; and
10. Other cases as may be provided by law 159
 Problem
Does the LA have any jurisdiction over the
validity of tax deductions on a retirement
benefit claimed by an employee?

JMG
160
 Answer
Yes, the issue of deduction for tax purposes is
intertwined with the main issue of whether her
benefits have been fully paid, it is therefore, a
money claim arising from employer-employee

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relationship, which falls within the jurisdiction of
the Labor Arbiter.

161
 Problem
S is an employee of X Co. X Co. allows S to use the
company motorcycle to make deliveries to the
company’s clients. When X Co. decided to close
its business, it required S to surrender the

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motorcycle in exchange of his separation pay. S
refused and filed a claim for non-payment of
separation pay before the LA. He claims that X Co.
has no right to withhold the payment of his
separation pay and that if X Co. wants to get his
motorcycle back he should file a separation action 162
before the regular courts. Rule on S’s contention.
 Answer
S is incorrect. The employer’s right to withhold benefits of an employee
who fails to pay for their accountabilities is support by law.

The LA has jurisdiction over the issue on whether S lawfully withheld the
return of X Co’s property. Claims arising from an employer-employee
relationship are not limited to claims by an employee. Employers may also
have claims against the employee, which arise from the same relationship.

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As a general rule, therefore, a claim only needs to be sufficiently
connected to the labor issue raised and must arise from an employer-
employee relationship for the labortribunals to have jurisdiction.

In this case, the return of its properties in S’ possession by virtue of their

status as employees is an issue that must be resolved to determine
whether benefits can be released immediately. It is interwined with the
parties’ E-E relationship, thus, it is properly within the labor tribunals’ 163
jurisdiction.
Effect of non appearance during
the mandatory conference
NON-APPEARANCE OF PARTIES. – The non-appearance of the
complainant or petitioner during the two (2) settings for mandatory
conciliation and mediation conference scheduled in the summons,
despite due notice thereof, shall be a ground for the dismissal of the
case without prejudice.

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In case of non-appearance by the respondent during the first
scheduled conference, the second conference as scheduled in the
summons shall proceed. If the respondent still fails to appear at the
second conference despite being duly served with summons, he/she
shall be considered to have waived his/her right to file position paper.
The Labor Arbiter shall immediately terminate the mandatory
conciliation and mediation conference and direct the complainant or
petitioner to file a verified position paper and submit evidence in
support of his/her causes of action and thereupon render his/her 164
decision on the basis of the evidence on record.
Requisites for perfection of an
appeal
The appeal shall be:

(1) filed within the reglementary period provided in Section 1 of this

Rule;
(2) verified by the appellant himself/herself in accordance with Section 4,
Rule 7 of the Rules of Court, as amended;

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(3) in the form of a memorandum of appeal which shall state the grounds
relied upon and the arguments in support thereof, the relief prayed for, and
with a statement of the date the appellant received the appealed decision,
award or order;
(4) in three (3) legibly typewritten or printed copies; and
(5) accompanied by:
proof of payment of the required appeal fee and legal research fee,
posting of a cash or surety bond as provided in Section 6 of this Rule, and
proof of service upon the other parties.
(b) A mere notice of appeal without complying with the other requisites
aforestated shall not stop the running of the period for perfecting an appeal. 165
 Motion to Reduce Bond
No motion to reduce bond shall be
entertained except on meritorious grounds, and
only upon the posting of a bond in a reasonable
amount in relation to the monetary award.

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The mere filing of a motion to reduce bond
without complying with the requisites in the
preceding paragraphs shall not stop the running of
the period to perfect an appeal.
166
Manila Mining Corporation (MMC)
v. Lowito Amor, April 20, 2015
Respondents are employees of Manila Mining Corporation
(MMC). Sometime on July 2001, MMC was forced to temporarily
suspend its operations for six months. On December 2001, MMC
extended the temporary suspension of its operations. Adversely
affected by the suspension of MMC’s operations, respondents filed a

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complaint for constructive dismissal against MMC. The Labor Arbiter
ruled in favor of respondents ordering MMC to pay them separation pay
in the aggregate amount of PhP2,138,190.02 and 10% attorney’s fee.

MMC appealed the decision to the NLRC, posted a bond in the

amount of PhP100,000.00 and a motion to reduce bond assailing
financial losses for their failure to post a bond equivalent to the
judgment award. The bond (check ) was dishonored by the bank upon
presentment for payment and MMC only replaced it 24 days before the 167
resolution of the appeal or 116 days when the decision of LA became
final and executor.
 Guidelines
(1) The motion to reduce bond should be based on meritorious grounds
and (2) a reasonable amount in relation to the monetary award is posted
by the appellant, otherwise the filing of the motion to reduce bond shall
not stop the running of the period to perfect the appeal.
(2) For purposes of compliance with condition no.2 , a motion shall be
accompanied by the posting of provisional cash or surety bond equivalent
to ten percent of the monetary award subject to appeal, exclusive of

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damages and attorney’s fees.
(3) Compliance with the foregoing conditions shall suffice to suspend the
running of the 10 day reglementary period to perfect the appeal from the
LA’s decision.
(4) The NLRC retains the authority and duty resolve the motion to reduce
bond and determine the final amount of bond that shall be posted by the
appellant, still in accordance with the standards of meritorious grounds
and reasonable amount.
(5) In the event that NLRC denies the motion to reduce bond, or requires a
bond that exceeds the amount of the provisional bond, the appellant shall
be given a fresh period of ten days from notice of the NLRC order within 168
which to perfect the appeal by posting the required appeal bond.
 Effect of Defiance on a
Certification Order
Non-compliance with the certification order
of the Secretary of Labor and Employment shall be
considered as an illegal act committed in the

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course of the strike or lockout, and shall authorize
the Commission to enforce the same under pain
of immediate disciplinary action, including
dismissal or loss of employment status or payment
by the locking-out employer of backwages,
damages and/or other affirmative relief, even 169
criminal prosecution against the liable parties.
 Requisites for the issuance of
an Injunction
(a) That prohibited or unlawful acts have been threatened and will
be committed and will be continued unless restrained, but no
injunction or temporary restraining order shall be issued on
account of any threat, prohibited or unlawful act, except against
the person or persons, association or organization making the

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threat or committing the prohibited or unlawful act or actually
authorizing or ratifying the same after actual knowledge thereof;
(b) That substantial and irreparable injury to petitioner's
property will follow;
(c) That as to each item of relief to be granted, greater injury
will be inflicted upon the petitioner by the denial of relief than will
be inflicted upon respondents by the granting of relief;
(d) That petitioner has no adequate remedy at law; and
(e) That the public officers charged with the duty to protect
petitioner's property are unable or unwilling to furnish adequate 170
protection.
 Third Party Claim
(a) If the property levied is claimed by any person other than the
losing party, such person may file a third party claim not later
than five (5) days from the last day of posting or publication of
the notice of execution sale, otherwise the claim shall be forever
barred. Such third party claim must comply with the following
requirements:

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1. An affidavit stating title to property or right to the possession
thereof with supporting evidence;
2. Posting of a cash or surety bond equivalent to the amount of
the claim or judgment award and in accordance with Section 6 of
Rule VI;
3. In case of real property, posting of a refundable cash deposit
of Twenty Thousand Pesos (P20,000) for the payment of 171
republication of notice of auction sale; and
4. Payment of prevailing filing fee.
 The Remedy of a Verified
Petition under Rule XII

A party aggrieved by any order or resolution

of the Labor Arbiter including those issued during

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execution proceedings may file a verified petition
to annul or modify such order or resolution. The
petition may be accompanied by an application for
the issuance of a temporary restraining order
and/or writ of preliminary or permanent
injunction to enjoin the Labor Arbiter, or any
person acting under his/her authority, to desist 172
from enforcing said resolution or order.
Effect of the Filing of a Verified
Petition
Upon filing of the petition, the proceedings before
the Labor Arbiter shall continue unless restrained. In case
of execution, the proceedings in accordance with Rule XI of
these Rules shall not be suspended, but no money

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collected or credit garnished may be released or personal
properties levied upon be sold by public auction within
fifteen (15) calendar days from the filing of the petition. If
no temporary restraining order or writ of preliminary
injunction is issued within the said period, the money
collected or credit garnished shall be released and/or the
properties levied upon sold by public auction and the
proceeds of the sale applied, to satisfy the judgment. 173
No Appeal from the Order of the
Labor Arbiter Arising from
Execution Proceedings or other
incidents

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Except by way of a petition filed in
accordance with this Rule, no appeal from the
order or resolution issued by the Labor Arbiter
during the execution proceedings or in relation
to incidents other than a decision or
disposition of the case on the merits, shall be
allowed or acted upon by the Commission. 174
The End

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&

175