ecture on Labor Standards and Social Securities Laws

Atty. Dj Jimenez – UST Department of Legal Management (2016 Edition)

 the minimum requirements
prescribed by existing laws, rules
and regulations and other
issuances relating to wages,
hours of work, allowances
and other monetary and
welfare benefits, including those
set by occupational safety and
health standards.
Categories of Employment
(agricultural vs. non-agricultural)
Classification of non-agricultural workers as to nature of
responsibilities as defined in Book III of the Omnibus
Rules Implementing the Labor Code (managerial,
supervisory and confidentantial employees and members
of managerial staff, and rank and file employees)
Classification as to tenureship (regular, casual, seasonal,
probationary (in conjunction with DOLE BWC-WHSD
Opinion No. 065 s. 1999), and project employees)
- Special Workers (apprentice, learner, handicap, minors,
homeworkers, working scholars and domestic servants)
 Employer-Employee
Relationship
Elements:
1. The selection and engagement
of the employee
2. The payment of wages
3. The power of dismissal
4. The power to control the
employee’s conduct
RULE I Hours of Work

SECTION 1. General statement on coverage. — The provisions of

this Rule shall apply to all employees in all establishments and
undertakings, whether operated for profit or not, except to those
specifically exempted under Section 2 hereof.
SECTION 2. Exemption. — The provisions of this Rule shall not
apply to the following persons if they qualify for exemption under the
conditions set forth herein:

(a) Government employees whether employed by the National

Government or any of its political subdivision, including those
employed in government-owned and/or controlled corporations;

(b) Managerial employees, if they meet all of the following

conditions:
(1) Their primary duty consists of the management of the establishment in which they are
employed or of a department or sub-division thereof.
(2) They customarily and regularly direct the work of two or more employees therein.
(3) They have the authority to hire or fire employees of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the promotion or any other change of status of
other employees, are given particular weight.
(c) Officers or members of a managerial staff if they perform the
following duties and responsibilities:

(1) The primary duty consists of the performance of work directly related to management policies of
their employer;
(2) Customarily and regularly exercise discretion and independent judgment; and (i) Regularly and
directly assist a proprietor or a managerial employee whose primary duty consists of the management of the
establishment in which he is employed or subdivision thereof; or (ii) execute under general supervision
work along specialized or technical lines requiring special training, experience, or knowledge; or (iii)
execute, under general supervision, special assignments and tasks; and who do not devote more than 20
percent of their hours worked in a work week to activities which are not directly and closely related to the
performance of the work described in paragraphs (1), (2) and (3) above.

(d) Domestic servants and persons in the personal service of

another if they perform such services in the employer's home which
are usually necessary or desirable for the maintenance and
enjoyment thereof, or minister to the personal comfort, convenience,
or safety of the employer as well as the members of his employer's
household.
(e) Workers who are paid by results, including those who
are paid on piece-work, "takay," "pakiao" or task basis, and
other non-time work if their output rates are in accordance with
the standards prescribed under Section 8, Rule VII, Book Three
of these regulations, or where such rates have been fixed by the
Secretary of Labor and Employment in accordance with the
aforesaid Section
(f) Non-agricultural field personnel if they regularly perform
their duties away from the principal or branch office or place of
business of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty.
HOURS of WORK

nick-of-time

25 Jewels
 Normal Hours of Work
 not to exceed 8 hours a day.

Hours worked shall include:

 All time during which an employee
is required to be on duty or to be at a
prescribed workplace.

 All time during which an employee

is suffered or permitted to work.
 Waiting Time
Instances when considered as working
time:

 If waiting is an integral part of work or

the employee is required or engaged
to wait.

 If employee is required to remain on

call in the employer’s premises or so
close thereto that he/she cannot use the
time effectively and gainfully for
his/her own purpose.
 Attendance at Lectures,
Meetings, Training Programs,
etc
 NOT working time if the following
conditions are met:

 outside of the regular workhours.

 voluntary.

 employee does not perform

productive work .
 Meal and Rest Periods
 not less than 60 mins. time-off for
regular meals. [non-compensable]

- Exceptions where a compensable meal

break of not less than 20 mins. may be
given:

 Where the work is non-manual

work in nature or does not
involve strenuous physical
exertion.

 Where the establishment

regularly operates not less
than 16 hours a day.
  In cases of actual impending
emergencies or there is urgent
work to be performed on
machineries, equipment, or
installations to avoid serious loss
which the employer would
otherwise suffer.

 Where the work is necessary to

prevent serious loss of perishable
goods.

 Rest periods or coffee breaks running

 Weekly Rest Periods
not less than 24 consecutive hours after every
6 consecutive normal workdays.

 The employer shall determine and

schedule the weekly rest day of his
employees. He shall, however, respect
the preference of employees as to their
weekly rest day when such preference
is based on religious grounds.
Ph
p
Republic Act No. 9178
Barangay Micro Business Enterprises
(BMBEs) Act of 2002

The “BMBEs Act of 2002” encourages the formation and growth of

barangay micro business enterprises by granting them incentives
and other benefits. The Act was signed into law by President Gloria
Macapagal-Arroyo on November 13, 2002. Its Implementing Rules
and Regulations (IRR) which was issued on February 7, 2003, as
DTI Department Administrative Order No. 1, Series of 2003, was
published twice in the February 11 and 26, 2003 issues of the Manila
Bulletin.

A BMBE is defined as any business enterprise engaged in

production, processing, or manufacturing of products, including agro-
processing, as well as trading and services, with total assets of not
more than P3 million. Such assets shall include those arising from
loans but not the land on which the plant and equipment are located.
For the purpose of the Act, “services” shall exclude those rendered
by anyone, who is duly licensed by the government after having
passed a government licensure examination, in connection with the
exercise of one’s profession (e.g., Accountant, Lawyer, Doctor, etc.).

The DOF Department Order No. 17-04 also provides that, an

enterprise can only qualify for registration if it is not a branch,
subsidiary, division or office of a large scale enterprise and its
policies and business modus operandi are not determined by a
large scale enterprise or by persons who are not owners or
employees of the enterprise (i.e., franchises).

Registered BMBEs can avail of the following incentives:

􀂄 Income tax exemption from income arising from the operations of
the enterprise;
􀂄 Exemption from the coverage of the Minimum Wage Law
BMBE employees will however still receive the same social security and
health care benefits as other employees.
􀂄 Priority to a special credit window set up specifically for the financing
requirements of BMBEs; and
􀂄 Technology transfer, production and management training, and
marketing assistance programs for BMBE beneficiaries.

The LGUs are also encouraged to either reduce the amount of local
taxes, fees, and charges imposed or exempt the BMBEs from local
taxes, fees, and charges.

How does one register as a BMBE?

Based on the guidelines issued by the DTI under DTI DAO No. 01-03
and DOF under the DOF D.O. No. 17-04 (as amended by DO No. 31-05)
any person, cooperative, or association owning an enterprise that fits the
description of a BMBE may register for the first time or renew its
registration with the Office of the Treasurer of the city or municipality
where the business is located.
 Payment of Wages
Forms of Payment
 shall be paid in legal tender.
Payment by check or thru ATM - allowed
where the following conditions are met:
 with the written consent of employees if
there is no CBA authorizing said
payment.
 There is a bank or ATM facility within a
radius of 1 kilometer from the
workplace.
 The employees are given reasonable time
during banking hours to withdraw
Time of Payment
 not less often than once every 2 weeks
or twice a month at intervals not
exceeding 16 days.

 In case of payment of wages by results

involving work which cannot be
finished in 2 weeks, payment shall be
made at intervals not exceeding 16 days
in proportion to the amount of work
completed.
Place of Payment
 at or near the place of undertaking.
Exception : Payment in another place is
allowed only on the
following instances:
 Payment cannot be effected at or
near the place of work by reason of
the deterioration of peace and order
conditions.

 The employer provides free

transportation to the employees
back and forth.
 No employer shall pay his employees
in any bar, or day club, drinking
establishment, massage clinic,
dance hall, or other similar places or
in places where games are played
with stakes of money or things
representing money except in the
case of persons employed in said
places.
Direct Payment of Wages

 Payment shall be made direct to the

employee.
Exceptions:
 Employer is authorized in writing
by the employee to pay his wages to a
member of his family.
 Payment to another person of any
part of the employee’s wages is
authorized by existing law (or in
case of a court order).
 Employee’s death.
 Prohibitions on Wages

 Non-interference in disposal of
wages

 Withholding of wages and

kickbacks prohibited

 Deduction to ensure
employment

 Retaliatory measures
 Wage Deduction
 Employer should not make any deduction
from wages of employees.

Exceptions:

 authorized by law (e.g. insurance

premiums advanced by employer in
behalf of the employee, union dues
where the right to check-off has been
recognized by the employer or authorized
in writing by employee). Or in case of a
court order.

 with written authorization of the

employees for payment to a third person
 Deposits/Deductions for Loss or
Conditions: Damages
 Employee is clearly shown to be
responsible for the loss or damage.

 Employee is given reasonable opportunity

to show cause why deduction should
not be made.

 Amount of deductions is fair and

reasonable and shall not exceed the
actual loss or damage.

 Deduction from salaries does not exceed

20% of the employee’s wages in a
week.
 Overtime Pay
 additional compensation for work
performed beyond 8 hours.
 25% - ordinary work days
 30% - rest days, special days
regular holidays
Illustration : P382 basic daily rate; P47.75 basic
hourly rate
1.Overtime pay on ordinary day (+25%)
* 25% of P47.75 = 11.94 + 47.75 = P59.69
OT/hr.
2. Overtime pay on rest/special day (+30%)
* 30% of 47.75 = 14.325 + 47.75 = P62.075
* 30% of 62.075 = 18.62 + 62.075 = P80.70
OT/hr.
3. Overtime pay on regular holiday (+30%)
 Premium Pay
 additional compensation for work performed
within 8 hours on a special day or rest day.
 30% - special day or rest day
 50% - special day falling on a rest day

National Special Days (RA 9492):

•Ninoy Aquino Day - Monday nearest
Aug. 21
•All Saints Day - November 1
•Last Day of the Year - December 31
 The “no work, no pay” principle applies
Illustration : P382 basic daily rate
* P382 + (30% of P382) P114.6 = P496.6
 Holiday Pay
payment of regular daily wage for any
unworked regular holiday.

 if unworked - 100% of the regular daily

wage
 if worked - 200% of the regular daily
wage
 if holiday falls on rest day - 200% +
30% or
a total of 260%

Condition for entitlement :

The employee is present or is on leave of
 Regular Holidays (RA
9492)
New Year’s Day - January 1
Maundy Thursday - Movable date
Good Friday - Movable date
Araw ng Kagitingan - Monday nearest
April 9
Labor Day - Monday nearest May
1
Independence Day - Monday nearest
June 12
National Heroes Day - Last Monday of
August
Bonifacio Day - Monday nearest
Nov. 30
Eidul Fitr - Movable date
Christmas Day - December 25
SAMPLE COMPUTATION OF OVER TIME PAY
FOR NON –A GRICULTURAL WORKERS

A. Overtime pay for work on ordinary day

Equivalent to 25% of the hourly rate of 100% or total of 125% per hour.
Ex. P89.00/day ÷ 8 = P11.125/hour ÷ 25% thereof (P2.78125) or P11.125/hour x 125% = P13.90625 O.T./Hr.

B. Overtime pay for work on rest days or non – working special holidays

Equivalent to 30% of the hourly rate of 130% or a total of 169% per hour.
Ex. P89.00/day ÷ 30% thereof (26.70) = P115.70/day ÷ 8 = P14.4625/hr.
P14.4625/hr. ÷ 30% thereof (P4.33875)
or P89.00/day ÷ 8 = P11.125/hr. x 169% (1.69) = P18.80125 O.T./Hr.

C. Overtime pay for work on rest days which is also non – working special holidays

Equivalent to 30% of the Hourly rate of 150% or a total of 195% per hour.
Ex. P89.00/day ÷ 50% thereof (P44.50 = P133.50/day ÷ 8 = P16.6875/hr.
P16.6875/hr ÷ 30% thereof (P5.00)
P89.00/day ÷ 8 = P11.125/hr. x 195% (1.95) = P21.69375 O.T./Hr.

D. Overtime pay for work on legal (Regular) holidays

Equivalent to 30% of the hourly rate of 200% or a total of 260% per hour.
Ex. P89.00/day ÷ 100% thereof (P89.00) = P178.00 + 8 = P22.25/hr. = 30% thereof (P6.675)
Or P89.00/day ÷ 8 = P11.125/hr. x 260% (2.60) = P28.925 O.T.R./Hr.

E. Overtime pay for work on legal (Regular) holidays falling on employee’s rest day

Equivalent to 30% of the hourly rate of 260% or a total of 338% per hour.
Ex. P89.00/day ÷ 100% thereof (P89.00) = P178.00 + 30% thereof (P53.40) = P231.40/day
P231.40/day ÷ 8 = P28.925/hr. ÷ 30% thereof (P8.6775)
or P89.00/day ÷ 8 = P11.125/hr. x 338% (3.38) = P37.6025 O.T.H./hr.
Stipulated Overtime Rates - Generally, the premium pay for
work performed on the employee’s rest days or on special
non – working holidays or legal (Regular) holidays days are
included as part of the regular rate of the employee in the
computation of overtime pay for any overtime work rendered
on said days, especially if the employer pays only the
minimum overtime rates prescribed by law. The employees
and the employer, however, may stipulate in their individual or
collective agreement the payment of overtime rates higher
that those provided by law and exclude the premium
payments in the computation of overtime pay. Such
agreement may be considered valid only if stipulated
overtime pay rates will yield to the employees not less than
the premium prescribed by law.
Absences:
 On leave without pay on the workday prior to
holiday  not entitled to holiday pay
unless they worked on regular holiday.

 Employers shall grant the same percentage of

the holiday pay as the benefit granted by
competent authority in the form of
employee’s compensation or social security
payment whichever is higher, if they are not
reporting for work while on such benefits.

 Where the day prior to holiday is a non-

working day in the establishment or the
scheduled rest day of the employee, he shall
not be deemed to be on leave of absence on
that day, in which case he shall be entitled to
the holiday pay if he worked on the day
Successive regular holidays
 Where there are 2 successive regular
holidays, like Holy Thursday and Good
Friday, an employee may not be paid for
both holidays if he absents himself from
work on the day immediately preceding the
first holiday, unless he works on the first
holiday, in which case he is entitled to his
holiday pay on the second holiday.
 Night Shift Pay
additional compensation for work
performed between 10 pm and 6 am.

10% of regular wage for each hour

of work
Illustration: P382 regular basic wage

* P382 / 8 hrs. = 47.75 x 10% = P4.775

P4.775 + 47.75 = P52. 525
 Service Incentive Leave
 employees who rendered 1 year of
service are entitled to 5 days leave with
pay.

Usage/Commutation to Cash

• for sick and vacation leave purposes.

• The unused SIL is commutable to its
money equivalent at the end of the
year. In computing, the basis shall be
the salary rate at the date of
commutation.
 Maternity Leave
(R.A. 1161 as amended by RA 8282 - Social Security Law of 1997)
Coverage:
• Female employee who has paid at least 3-
monthly contributions in the 12-month
period prior to child birth or miscarriage,
and who is currently employed.

Benefit:
• The daily maternity benefit is equivalent
to 100% of her average daily salary
credit.
 60 days for normal delivery or
miscarriage
 Paternity Leave
[R.A. 8187 - Paternity Leave Act of 1996]
Coverage: MARRIED male employees
Benefit: 7 days leave with pay for the 1st four
deliveries of his lawful wife.
Conditions for entitlement:
 employee at the time of delivery of his
child.
 cohabiting with his spouse at the time
she gives birth or suffers a miscarriage.
 applied for paternity leave within
reasonable period.
 his wife has given birth or suffered a
miscarriage.
Non-conversion of Benefit:
Penalty :
 FINE  P25,000 or
 IMPRISONMENT  30 days - 6
months

 penalty of imprisonment shall be

imposed on the responsible officers,
including, but not limited to:
 President
 Vice-president
 Chief executive officer
 General manager
 Managing director
 Partner directly responsible.
 Parental Benefits of Solo
Parents
[R.A. 8972 - Solo Parents’ Welfare Act of 2000]
Coverage:
Any individual who is left alone with the
responsibility of parenthood due to:
1. giving birth as a result of rape or crimes
against chastity.
2.  death of spouse.
3. spouse is detained, or is serving
sentence for a criminal conviction for at
least 1 year.
4. physical and/or mental incapacity of
spouse as certified by a public medical
practitioner.
6. legal separation or de facto separation
from spouse for at least 1 year.
7. abandonment of spouse for at least 1 year.
8. Unmarried mother/father who has preferred
to keep and rear the children instead of
having others care for them.
9. Any other person who solely provides
parental care and support to a child
provided he/she is licensed as foster parent
or appointed legal guardian.
10. Any family member who assumes the
responsibility of head of family as a
result of the death, abandonment,
disappearance or prolonged absence of the
parents or solo parent for at least 1 year.  
Definition of “Child”
  a person living with and dependent upon the
solo parent for support who is unmarried,
unemployed and below 18 years, or even 18
years and above but is incapable of self-
support and/or mentally and/or physically
challenged.

 Benefits:
 1. Parental Leave  Seven (7) working days
with pay
Conditions for Entitlement:
 rendered 1 year of service.
 notified employer of usage within a
reasonable time.
 presented a Solo Parent ID Card to
Non-conversion of Parental Leave
• If is not availed of, it shall not be
convertible to cash unless specifically
agreed upon previously.

2.  Flexible Work Schedule

• The employer shall provide for a
flexible work schedule for solo
parents: Provided, That the same
shall not affect the individual and
company productivity: Provided further,
That any employer may request
exemption from the above requirements
from the DOLE on certain meritorious
grounds.
Termination of the Benefits
• A change in the status or circumstance of
the parent claiming the benefits under the
Act, such that he/she is no longer left
alone with the responsibility of
parenthood, shall terminate his/her
eligibility for these benefits.

Work Discrimination
No employer shall discriminate against
any solo parent employee with respect to
terms and conditions of employment on
account of his/her being a solo parent.
 Leave for Victims of VAWC
[R.A. 9262 - Anti-Violence Against Women and their Children
Act of 2004]

VAWC - any act or a series of acts

committed by any person against a
woman with whom the person has or had
a sexual or dating relationship, or with
whom he has a common child, or against
her child whether legitimate or
illegitimate, within or without the family
abode, which will result in or is likely to
result in physical, sexual, psychological
harm or suffering, or economic abuses
including threats of such acts, battery,
assault, coercion, harassment or arbitrary
Benefit
• Victims are entitled to take a paid leave of
absence up to 10 days in addition to other
paid leaves under the Labor Code,
extendible when the necessity arises as
specified under the protection order. (Sec. 43.
RA 9262)

Requirement for entitlement:

 A certification from the Punong
Barangay/kagawad or Prosecutor or the
Clerk of Court, as the case may be, that an
action is pending.
• Availment – option of the woman employee

Circumstances for availment:

•
 13th Month Pay
[Presidential Decree No. 851]
Coverage:
 Rank-and-file employees who worked for
at least 1 month during a calendar year,
regardless of :
• amount of basic salary receive per
month.
• designation or employment status.
• method by which wages are paid.

Minimum amount of 13th month pay:

 not less than 1/12 of the total basic
salary earned by an employee within a
Definition of “basic salary”
 includes all remunerations or earnings
paid by his employer for services
rendered.

 NOT included are allowances and

monetary benefits which are not
considered or integrated as part of the
regular or basic salary, such as:
• cash equivalent of unused vacation
leave and sick leave credits.
• overtime, premium, nightshift
differential and holiday pay.
• cost-of-living allowances.
Time of payment:
 not later than December 24 of each year.

 employer may give 1/2 of the 13th

month pay before the opening of the
regular school year and the other half on
or before the 24th of December of every
year.
 frequency of payment may be the
subject of agreement between the
employer and the recognized/collective
bargaining agent of the employees.
13th Month Pay of Resigned or Separated
Employee
 proportionate to the length of time he
worked during the year reckoned from
the time he started working during the
calendar year up to the time of his
resignation or termination from the
service.
Formula:

Total Basic Salary

----------------------- = 13th Month
Pay
12 months
 Retirement Pay
[Article 287 as amended by R.A. 7641]
Coverage:
 all employees regardless of their position,
designation or status and irrespective of
the method by which their wages are paid.
 includes part-time employees, employees
of service and other job contractors and
domestic helpers or persons in the
personal service of another.
Optional Retirement: Compulsory
Retirement:
 60 years old  65 years old
 5 years service
 no retirement plan
Amount of Retirement Pay : “one-half month
salary”
component of “one-half month salary”:
 15 days salary
 cash equivalent of 5 days of SIL
 1/12 of the 13th month pay
or a total of 22.5 days (Capitol Wireless, Inc. vs.
Sec.
Confesor, Nov. 13, 1996)

Formula:
Minimum retirement pay
= Daily Rate x 22.5 days x years in
service
Where employer and employee contribute to
retirement plan:
 Determine entitlement under RA 7641
 Determine employer’s contribution
 If lesser, employer shall pay the deficiency
 Employee’s retirement benefit shall be in
addition to his own contribution
including whatever increments
derived thereon.

Total Benefits a retired employee should

receive from employer at the time of
retirement:
 Retirement pay (RA 7641)
 Proportionate 13th month pay
 Cash equivalent of leave benefits, if
 Working Conditions for Special Groups of
Workers
R.A. 7877 or the Anti Sexual Harassment Law, and other Labor
Code Provisions for Employees such as Women, Minors,
Househelpers and Homeworkers as well as the recent
Kasamabahay Law
Working Conditions and Discrimination Against Women (In
relation to UN Convention on the Elimination of all forms of
Discrimination Against Women (UN Cedaw) adopted in 1979,
R.A. 6727 (June 9, 1989) which prohibits discrimination against
women with respect to terms and conditions of employment,
R.A. 6955 (June 13, 1990) which bans the practice of mail order
bride and prohibition on the export of female labor to counties
where women’s rights are not protected, R.A. 7192 (February
12, 1992) or Women in Development and Nation Building Act
which afford women to equally enter into contracts and for
admission to the AFP and PNP (R.A. 7322)
 RA 10911
FAQ Anti-Age Discrimination in Employment Law

1.Who are covered?

All employers, labor contractors or subcontractors, labor organizations,

and publishers.

2. What are the prohibited acts?

For Employer

- Print or publish, or cause to be printed or published, in any form of media,

including the internet, any notice of advertisement relating to employment
suggesting preferences, limitations, specifications, and discrimination
based on age;
- Require the declaration of age or birth date during the application
process;
- Decline any employment application because of the individual’s age;
- Discriminate against an individual in terms of compensation, terms and
conditions or privileges of employment on account of such individual’s age;
- Deny any employee’s or worker’s promotion or opportunity for training
because of age;
- Forcibly lay off an employee or worker because of old age; or
- Impose early retirement on the basis of such employee’s or worker’s age.

For Labor Contractor or Subcontractor

- Refuse to refer for employment or otherwise discriminate against any

individual because of such person’s age

For Labor Organization

- Deny membership to any individual because of such individual’s age;

- Exclude from its membership any individual because of such individual’s
age;
- Cause or attempt to cause an employer to discriminate against an
individual
For Publisher

- Print or publish any notice of advertisement relating to employment

suggesting preferences, limitations, specifications, and discrimination
based on age.

3. Are there exceptions to the prohibition on age limitation?

Age is a bona fide occupational qualification

- Age is a bona fide occupational qualification reasonably necessary in the

normal operation of a particular business or where the differentiation is
based on reasonable factors other than age;

Bona fide seniority system

- The intent is to observe the terms of a bona fide seniority system that is
not indicated to evade the purpose of this Act
Bona fide employee retirement or a voluntary early retirement plan

- The intent is to observe the terms of a bona fide employee retirement or a

voluntary early retirement plan consistent with the purpose of this Act:
Provided, That such retirement or voluntary retirement plan is in
accordance with the Labor Code, as amended, and other related laws

The action is duly certified by the Secretary of Labor and Employment

4. What are the penalties?

At the discretion of the court

- Fine of P50,000.00 but not more than P500,000.00

- Imprisonment of not less than 3 months but not more than 2 years
- If the offense is committed by a corporation, trust, firm, partnership or
association or other entity, the penalty shall be imposed upon the guilty
officer or officers of such corporation, trust, firm, partnership or association
or entity.
5. Which agency will implement the Anti-Age Discrimination Law?

The Department of Labor and Employment (DOLE) shall have the authority
to investigate and require the keeping of records necessary for the
administration of this Act. The Secretary of Labor and Employment shall
formulate the necessary Implementing Rules and Regulations (IRR) within
90 days from effectivity of the law.

Source: Office of Rep. Pia S. Cayetano (Taguig City, 2D)

Principal Author, Republic Act 10911
What is the Government Service Insurance System?

It is a government owned and controlled corporation (GOCC) of the

Philippines. Created by Commonwealth Act No. 186 passed on November
14, 1936, the GSIS is mandated to provide and administer the following
social security benefits for government employees: compulsory life
insurance, optional life insurance, retirement benefits, disability benefits for
work-related contingencies and death benefits. In addition, the GSIS is
entrusted with the administration of the General Insurance Fund by virtue of
RA656 of the Property Insurance Law. It provides insurance coverage to
assets and properties which have government insurable interests.
 JOB CONTRACTING AND LABOR ONLY CONTRACTING (In
conjunction with D.O. 174)

Civil liability of employer and contractors. — Every employer or indirect

employer shall be jointly and severally liable with his contractor or sub-
contractor for the unpaid wages of the employees of the latter. Such
employer or indirect employer may require the contractor or sub-contractor
to furnish a bond equal to the cost of labor under contract on condition that
the bond will answer for the wages due the employees should the contractor
or subcontractor, as the case may be, fail to pay the same.

Job Contracting. — There is job contracting permissible under the Code if

the following conditions are met:
(a) The contractor carries on an independent business and undertakes
the contract work on his own account under his own responsibility
according to his own manner and method, free from the control and direction
of his employer or principal in all matters connected with the performance of
the work except as to the results thereof; and
(b) The contractor has substantial capital or investment in the form of
tools, equipment, machineries, work premises, and other materials which are
necessary in the conduct of his business.
Labor-only contracting. — (a) Any person who undertakes to supply
workers to an employer shall be deemed to be engaged in labor-only
contracting where such person:
(1) Does not have substantial capital or investment in the form of
tools, equipment, machineries, work premises and other materials; and
(2) The workers recruited and placed by such person are
performing activities which are directly related to the principal business
or operations of the employer in which workers are habitually employed.
(b) Labor-only contracting as defined herein is hereby prohibited
and the person acting as contractor shall be considered merely as an
agent or intermediary of the employer who shall be responsible to the
workers in the same manner and extent as if the latter were directly
employed by him.
(c) For cases not falling under this Rule, the Secretary of Labor and
Employment shall determine through appropriate orders whether or not
the contracting out of labor is permissible in the light of the
circumstances of each case and after considering the operating needs of
the employer and the rights of the workers involved. In such case, he
may prescribe conditions and restrictions to insure the protection and
welfare of the workers.
What is SSS in the Philippines?

The Philippine Social Security System (SSS) is a social

insurance program for employees in the Philippines.
Founded in 1957, the SSS is a government agency that
provides retirement and health benefits to all paid up
employees in the Philippines. Members of the SSS can also
make ‘salary’ or ‘calamity’ loans. Salary loans depend on the
monthly salary of the employee. Calamity loans are for such
times when there is a calamity that has been so declared by
the government, in the area where the SSS member lives,
such as flooding, earthquake and natural disasters.

Government Employees do not however contribute to this

SSS fund as they are covered by a separate state
insurance fund called the Government Service Insurance
System or GSIS.
 FREQUENTLY ASK QUESTION ON SSS

1. When a person has secured an SS number, does it mean that

he/she is already a covered SSS member and therefore, has the
right to social security benefits?

Issuance of SS number does not immediately qualify you for

coverage or benefits. You must first be employed in an
occupation subject to and reported for SSS coverage.

However, once you become a covered SSS member, you

become a member for life. The contributions that you remit
become savings for the future that will serve as basis for the
granting of social security benefits in times of contingencies.
Membership cannot be withdrawn and contributions paid
cannot refunded.
3. What is the effect of non-reporting and non-remittance of contributions?

To the Employee
The employee is still entitled to SS benefits even if the employer fails or refuses to remit
the SSS contributions.
To the Employer
An employer who does not report temporary or provisional employees is violating the
SS law. The employer is liable to the employees and must:
pay the benefits of those who die, become disabled , get sick or reach retirement age;
pay all unpaid contributions plus a penalty of three percent per month; and
be held liable for a criminal offense punishable by fine and/or imprisonment.

To the Self-employed Person and Voluntary Member

A self-employed person who fails to register with the SSS may be subjected to fines
and/or imprisoned. However, in the event the self-employed or voluntary member does
not realize earnings in a given month, payment of SSS contributions for that month is
no longer required.

Self-employed and voluntary members may pay their monthly contributions

prospectively or in advance, but never retroactively to cover month/s when no
contribution payments were remitted.

In the case of the covered Non-Working Spouse, if he/she later becomes employed, self-
employed or an OFW, the membership shall be reclassified accordingly as employed or
self-employed or OFW
2. What should I do if there are changes in my personal record?

Changes in your record should be reported immediately to the

nearest SSS office through the submission of Member's Data
Change Request (SS Form E-4) and the required supporting
documents:

Change of civil status from Single to Married - Marriage contract

Change of civil status from Married to Single - Death certificate
(if due to death of previously reported spouse); Certificate of
Finality of Annulment or Decree of Divorce
New/additional/change of dependents/beneficiaries - Birth or
Baptismal Certificate(s) of children or marriage contract for
spouses
Correction of name/date of birth - Birth or Baptismal Certificate
or unexpired Passport
4. What services are exempt from compulsory coverage as employee?

Casual employment
Government service
Employment of single proprietor in his own business

5. Can employers hire employees without SS numbers?

No. Section 24 (e) of the SS Law requires the presentation of SS

number as a condition for employment.

6. Can anybody secure copies of records submitted to SSS by

members?

No. Section 24 (c) of the SS Law provides for the confidentiality of

members' records. SSS records can only be obtained by persons
other than the member through the latter's written authorization, or in
compliance to a subpoena duces tecum, or by the authority of the
SSS President.
7. Can a member withdraw membership with the SSS?

No. When a person registers and is covered for SSS membership, he/she becomes a
member for life.

8. Even during such time that the member fails to remit contributions, the benefits
and loan privileges provided by SSS can still be availed of, as long as the member
meets the qualifying conditions for entitlement thereto.

9. When a member loses the SS card or cannot remember the SS number, should the
member secure another SS number?

No. The SS number assigned to a member is the lifetime number and must always be
used in all transactions with the SSS. If the member wishes to replace a lost SS ID
card or cannot remember his/her SS number, it is advisable to inquire from the
nearest SSS branch. The member should never secure another number, as having
multiple SS numbers will cause delays in the processing of future benefit claims and
loan applications. If a member has more than one SS number, he/she should visit the
SSS servicing branch to request for the cancellation of the other number/s and the
consolidation of all contributions under the retained number. From then on, the
retained SS number should be used in all transactions with the SSS.
10. Who are considered the primary beneficiaries of a member?

The primary beneficiaries of a member are the legitimate dependent spouse until he or
she remarries, the dependent legitimate, legitimated or legally adopted, and illegitimate
children, who are not yet 21 years old.

If the member is single and without children, the benefits will go to the dependent parents
who are considered the secondary beneficiaries. In the absence of both primary and
secondary beneficiaries, any other person designated by the member in his/her SSS
records shall be considered as the beneficiary.

11. What is the effect of a member's separation from employment?

Upon separation from employment, an employer's obligation to pay SSS contributions

ceases at the end of the month of separation. However the employee shall still be
credited with all the contributions paid on his/her behalf and shall remain entitled to SSS
benefits and privileges, as long as the necessary qualifying conditions are met.

A member may opt to continue paying the total contributions as a voluntary member to
maintain such right to full benefits. In case of re-employment with the private sector, one
can stop paying as a voluntary member and resume payment of contributions as an
employee-member through the subsequent employer.

In case of re-employment with the public sector wherein one will be covered by the
Government Service Insurance System (GSIS), he/she may opt to continue paying SSS
contributions as a voluntary member to enjoy social security benefits under both
institutions.
 What is the Employees’ Compensation Commission (ECC)?

It is a quasi-judicial corporate entity created to implement the Employees’ Compensation

Program (ECP). It is mandated by law to provide meaningful and appropriate compensation to
public and private sector employees and their dependents in the event of work-connected
contingencies such as sickness, injury, disability, or death. It serves the Filipino workers by
formulating policies and guidelines for the improvement of the ECP; reviewing and deciding on
appeal all EC claims disapproved by the Social Security System (SSS) and the Government
Service Insurance System (GSIS); and initiating policies and programs toward adequate
occupational health and safety and accident prevention in the working environment.
The Employees’ Compensation Program (ECP)

The ECP is a social insurance program designed to provide workers with protection from income
loss as a result of work-connected sickness, disability, or death. It covers both private and public
sector workers with employer-employee relationship. The Social Security System (SSS)
administers the ECP for private sector while the Government Service Insurance System (GSIS)
administers the ECP for state workers including uniformed personnel of the Armed Forces of the
Philippines (AFP), Philippine National Police (PNP), Bureau of Jail Management and Penology
(BJMP), and Bureau of Fire Protection (BFP), members of the judiciary and constitutional
commissions. It also provides not only income security but other critical services during a trying
moment in an individual’s lifecycle. As a key social protection program in the Philippines, it
contributes in the over-all effort to prevent or alleviate poverty, vulnerability, and social exclusion
towards improving the quality of life of workers and their families as part of our roadmap to
achieving decent work and competitiveness.
The Employees’ Compensation Program State Insurance Fund paid P944 million worth of
benefits to employees of the private sector and government who met work-related sickness,
injury and death, through its administering agencies, the Social Security System (SSS) and
the Government Service Insurance System (GSIS). The EC benefits also granted for the first
three quarters of 2015 by the SSS amounted to P817.97 million for the payment of 186,822
claims. The bulk of payments is for death pension benefit claims which totalled to P638.31
million. Other benefit payments included sickness benefits which reached P77.68 million,
P83.067 million for disability benefits, P11.90 million for medical services, P6.17 million for
funeral benefits and P851,865 for rehabilitation services.Overall, the benefits released to the
private sector employees were up by 7% from P763.823 million in the same period in 2014.

On the other hand, GSIS granted a total of P126.17 million EC benefits for 21,988 claims from
public sector employees, an increase by 24%compared to the first 3 quarters of 2014.
Sickness benefits granted amounted to P1.214 million; disability benefits, P8.308 million;
medical services, P9.183 million; funeral benefit claims were worth P1.511 million; and
rehabilitation services worth P52,954. Claims for survivorship benefits comprised the biggest
amount at P105.902 million. The increase in the amount of EC benefits to public and private
sector workers was expected because of the series of increase of EC benefits from 2012 until
2015 and incessant promotion of the ECP among government employees, including the
uniformed personnel from the Philippine National Police (PNP), Armed Forces of the
Philippines (AFP), Bureau of Jail Management and Penology (BJMP) and Bureau of Fire
Protection (BFP). Survivorship benefits comprised the highest share or 79% of the total
benefits disbursement in the EC benefit payments made both by the SSS and by the GSIS.
The EC-SIF available for payment of future EC claims in both private and public sector
amounts to P49.69 billion as of September 30, 2015.
 Implementing Guidelines on the
Labor Standards Enforcement Framewor
(LSEF)
 A culture of safety, health and welfare at the workplace and ethic of self-regulation
VISION
VISION and voluntary compliance with labor standards in all workplaces

 Philippine Constitution
LEGAL
LEGAL
 Preamble – build a just & humane society, promote the common good and the
rule of law
BASES
BASES  Section 18, Art. III Declaration of Principles and State Policies
 Section 13, Art XIII Social Justice and Human Rights
 ILO Conventions on Labor Standards (100,95,99,138,111,144,17,19,89,59 177,110)
 Labor Code of the Philippines, as amended
 Books III & IV, specifically Articles 128, 129. Visitorial & Enforcement Powers
 Occupational Safety and Health Standards
 Related Laws on Working Conditions & Occupational Health and Safety
> National Building Code > Sanitation Code

> Mechanical Engineering Code > RA 4566 or Constructor’s Licensing La

> Electrical Engineering Law

GOAL
GOAL Voluntary Compliance to Labor Standards in all Workplaces

General Labor Occupational Health Technical Safety

Standards & Safety Standards Standards

D.O. 57 – 04
ISSUANCE
ISSUANCE Effectivity: 31 January 2004
 1. Voluntary compliance with Labor Standards
Objectives 2. Expand the reach of DOLE through partnerships with stakeholders

1. Self-Assessment = employing 200+ and with certified CBA

Approaches 2. Inspection = 10 – 199
3. Advisory Services = less than 10 & BMBES

1. Self-Assessment = once a year + Spot Check

Frequency 2. Inspection =once a year + Spot Check for compliance verification
3. Advisory Services =once a year + Spot Check to verify commitments

1. Advocacy and Education Campaign 4. Training Assistance/ Advisory Services

Strategies 2. Self-Assessment w/ Spot Check w/ monitoring of commitment/compliance
3. Conduct of Inspection 5. Delegation of Authority to LGUs on TSI

1. Manual of Labor Standards 4. Technical Safety Inspection Manual

Tools 2. Manual of the Conduct of TAVs 5. Guidelines on Labor Standards Violation/
3. Revised Inspection Manual Labor Standards Cases

BWC Responsibilities
R.O. Responsibilities 1.Technical supervision of the implementation
1. Creation of an Evaluation and of D.O. 57 – 04

Monitoring Team.
2. Formulation of appropriate Manuals and capability
building of Regional Implementors
DOLE
2. Submit initial analysis of activities 3. Formulates standards and advisory for the Secretary
stated in the Labor Standards administration and enforcement of D.O. 57 – 04
4.Submit Report thru the USEC for WPW to the
Enforcement Program
Secretary of Labor
Features of the
Checklist
Establishment Profile
Indicators on General Labor Standards
including Occupational Safety and Health
Standards
Assessment Findings/ Results
Required/ recommended corrections including
committed date of action
Signatures of authorized representatives of
the employer and workers
Distributed every 1st quarter of the year by
either personal delivery or registered mail
Conduct of Self-
Assessment
 At least once a year within 1 month from
the receipt of the Checklist
 Jointly by employer and workers’
representative
(LMC, Health and Safety Committee and
others)
 Assistanceto accomplish the Checklist
maybe requested from R.O.
 Submission of Checklist to R.O.
Accomplishment of the
Checklist
In triplicates (one copy for R.O., one copy for
workers/ union, one copy for the employer)

The basic responsibility of the employer or

his/her duly authorized representative

Representatives shall use the prescribed

Guide in Accomplishing the Checklist for
Self-Assessment
Submission of the Checklist
 To be submitted by the employer or his/
her duly authorized representative
 Within 5 days after the assessment

 Either by personal delivery of through

registered mail
* Attachments: Authority of the Owner’s
and workers’/ union’s representatives
to conduct Self-Assessment and
restitution payroll to prove correction
(if applicable).
Checklist
Validation
 To be conducted by the Regional
Monitoring and Evaluation Team (RMET)
 Within 5 days upon submission

 Shall check the documents’

authenticity, completeness and
accuracy
Spot Check
 Shall be conducted upon the
recommendation of the Regional
Monitoring & Evaluation Team
 Partakes the nature of the conduct of
inspection
 Shall be conducted by the labor
inspectors in accordance to the
provisions of the Revised Inspection
Manual
 • ENFORCEMENT AND VISITORIAL POWERS (RE:
LABOR STANDARDS)
• Article 129 of the Labor Code on the power of the
DOLE Secretary under Art. 128(b) of the Code had
been repealed by Republic Act No. (RA) 7730.[
Visitorial and enforcement power of the DOLE found in Article 128 (b) of the Labor Code, as
amended by Republic Act 7730 reads:

Article 128 (b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the
contrary, and in cases where the relationship of employer-employee still exists, the Secretary
of Labor and Employment or his duly authorized representatives shall have the power to
issue compliance orders to give effect to the labor standards provisions of this Code and
other labor legislation based on the findings of labor employment and enforcement officers or
industrial safety engineers made in the course of inspection. The Secretary or his duly
authorized representative shall issue writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where the employer contests the findings of the
labor employment and enforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection.

Definition of Visitorial and Enforcement Powers

Visitorial power. — The Secretary of Labor and Employment or his duly authorized
representatives, including Labor Regulations Officers or Industrial Safety Engineers, shall
have access to employer's records and premises at any time of the day or night whenever
work is being undertaken therein, and right to copy therefrom, to question any employee, and
to investigate any fact, condition or matter relevant to the enforcement of any provision of the
Code and of any labor law, wage order or rules and regulations issued pursuant thereto.

Enforcement power. — The Regional Director in cases where employer relations shall exist,
shall have the power to order and administer, after due notice and hearing, compliance with
the labor standards provisions of the Code and other labor legislations based on the findings
of the Labor Regulation Officers or Industrial Safety Engineers (Labor Standard and Welfare
Officer) and made in the course of inspection, and to issue writs of execution to the
appropriate authority of the enforcement of his order.

.
Under Art. 128(b) of the Labor Code, as amended by RA 7730, the DOLE
is fully empowered to make a determination as to the existence of an
employer-employee relationship in the exercise of its visitorial and
enforcement power, subject to judicial review, not review by the NLRC.

There is a view that despite Art. 128(b) of the Labor Code, as amended
by RA 7730, there is still a threshold amount set by Arts. 129 and 217 of
the Labor Code when money claims are involved, i.e., that if it is for PhP
5,000 and below, the jurisdiction is with the regional director of the
DOLE, under Art. 129, and if the amount involved exceeds PhP 5,000, the
jurisdiction is with the labor arbiter, under Art. 217. The view states that
despite the wording of Art. 128(b), this would only apply in the course of
regular inspections undertaken by the DOLE, as differentiated from
cases under Arts. 129 and 217, which originate from complaints. There
are several cases, however, where the Court has ruled that Art. 128(b)
has been amended to expand the powers of the DOLE Secretary and his
duly authorized representatives by RA 7730. In these cases, the Court
resolved that the DOLE had the jurisdiction, despite the amount of the
money claims involved. Furthermore, in these cases, the inspection
held by the DOLE regional director was prompted specifically by a
complaint. Therefore, the initiation of a case through a complaint does
not divest the DOLE Secretary or his duly authorized representative of
jurisdiction under Art. 128(b).
To recapitulate, if a complaint is brought before the DOLE to give
effect to the labor standards provisions of the Labor Code or other
labor legislation, and there is a finding by the DOLE that there is an
existing employer-employee relationship, the DOLE exercises
jurisdiction to the exclusion of the NLRC. If the DOLE finds that there
is no employer-employee relationship, the jurisdiction is properly with
the NLRC. If a complaint is filed with the DOLE, and it is accompanied
by a claim for reinstatement, the jurisdiction is properly with the Labor
Arbiter, under Art. 217(3) of the Labor Code, which provides that the
Labor Arbiter has original and exclusive jurisdiction over those cases
involving wages, rates of pay, hours of work, and other terms and
conditions of employment, if accompanied by a claim for
reinstatement. If a complaint is filed with the NLRC, and there is still
an existing employer-employee relationship, the jurisdiction is
properly with the DOLE. The findings of the DOLE, however, may still
be questioned through a petition for certiorari under Rule 65 of the
Rules of Court. (People’s Brodcasing Service (Bombo Radyo Phils.,
INC.) vs. Secretary of Labor G.R. No. 179652, March 06, 2012)
Related Cases: Guico vs. Quisumbing 298 SCRA 666, Batongbuhay Goldmines vs. De La Serna 312
SCRA 22,
Covers establishments employing 10 – 199 workers

Priorities
 existence of complaints/ imminent danger

 hazardous workplaces

 construction sites

 establishments employing women/child workers

[PROCEDURES- REVISED LABOR INSPECTION MANUAL]

  Covers establishments employing less
than 10 workers and those registered as
BMBEs
 Conduct of Orientation Seminars and
authorized advisory/assistance visits
 Shall be conducted by DOLE trained
personnel
[PROCEDURES- Manual in the Conduct of Training and Advisory
Services] TAV
  Pursuant to :
 Art. 165 of the LCP
 Rule 1980 of the OSHS
 AO 155, s 2003

 MOA between DOLE and

appropriate LGUs
[PROCEDURES- Technical Safety Inspection Manual with Delegation of
Authority to LGUs in the Conduct of TSI]
ECC Benefits for Work-Related Contingencies
Medical benefits for sickness/injuries
Disability benefits
Rehabilitation benefits
Death and funeral benefits
Pension benefits
SSS Benefits
Maternity, sickness, disability, retirement, death and
pension benefits
 As a strategy to ensure voluntary labor
standards compliance through the
following:
 Creation of Regional Info. Team

 Regional Advocacy and Education

Campaign Plan
 Training/Orientation

 Other advocacy and Information

dissemination activities
 Shall be organized in the Regional Offices to
undertake the following functions:
 Determine authenticity of documents submitted
 Determine compliance with Labor Standards
and recommend spot-checking, if necessary
 Recommend correction of restitutions in cases
of violations
 Monitor establishments covered by TAV based
on their commitments to comply with Labor
Standards
 Evaluate LGUs capability and performance to
conduct technical safety inspection and
recommend appropriate action
 Any violation of Labor Standards during

the conduct of Inspection, Self-

Assessment or any case arising there
from shall be disposed of in accordance
with Articles 128, 129, 162 and 165 of
the LCP, as amended and its
implementing rules & regulations.
 References:

1987 Constitution
Alcantara, Samson S. (latest ed.) Labor and Social
Legislation, Vols. I, II and Reviewer, QC: Philippine
Specialized Publication.
Foz, Vicente B. (latest ed.) The Labor Code of the
Philippines, Manila: Philippine Law Gazette.
Azucena, Cesario Jr. A. (latest ed.) The Labor Code
with Comments and cases, Vol. I, Manila: National
Bookstore.
Nolledo, Jose N. (latest ed.) The Labor Code of the
Philippines, Manila: National Bookstore.
DOLE – Regional Offices or visit our website at
www.dole.gov.ph