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ph/faq/

How can an employee terminate his employment?

An employee may file his voluntary resignation by serving a written notice to the employer at least one
(1) month prior to the intended date of resignation.

What are the requisites for termination of employment by an employee without just cause?
In case of termination without just cause, the following requisites must be complied with by the
employee:
1. written notice of the termination (resignation letter)
2. service of such notice to the employer at least one (1) month in advance. (Art. 285)

What are the just causes for dismissal of an employee by an employer?

The following are the just causes stated in Art. 282 of the Labor Code:
1. Serious misconduct
2. Willful disobedience to lawful orders of the employer or representative in connection with his
work
3. Gross and habitual neglect of duty
4. Fraud and willful breach of trust
5. Commission of crime against the person of the employer, his representative or any immediate
member of his family
6. Analogous causes
Other causes of dismissal by an employer, not stated in Art. 282:
1. Termination pursuant to a union shop/closed shop agreement in a CBA
2. Defiance of an employee of a Return-to-Work order
3. Failure to meet the standards set in a probationary contract of employment

What is the prescriptive period for the cause of action of illegal dismissal?
An action for illegal dismissal prescribes in four (4) years from accrual of cause of action. (Civil Code)

Equal Work Opportunities for All

The State shall protect labor, promote full employment, provide equal work opportunity regardless of
gender, race, or creed; and regulate employee-employer relations.
Male and female employees are entitled to equal compensation for work of equal value and to equal
access to promotion and training opportunities. Discrimination against female employees is unlawful. It
is also unlawful for an employer to require a condition of employment that a woman employee shall
not get married, or to stipulate expressly or tacitly that a woman employee shall be deemed dismissed
upon marriage.
The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-hazardous jobs.
But a child below 15 maybe employed by parents or guardians in a non-hazardous job if the
employment does not interfere with the child's schooling.

What is security of tenure?

Every employee shall be assured security of tenure. No employee can be dismissed from work except
for a just or authorized cause, and only after due process.
Just Cause refers to any wrongdoing committed by an employee including:
1. serious misconduct
2. willful disobedience of employers' lawful orders connected with work
3. gross and habitual neglect of duty
4. fraud or willful breach of trust
5. commission of crime or offense against the employer, employer's family member/s or
representative
6. other analogous cases
Authorized Cause refers to an economic circumstance not due to the employee's fault, including:
1. the introduction of labor-saving devices
2. redundancy
3. retrenchment to prevent losses
4. closure or cessation of business
Due Process in cases of just cause involves:
1. notice to employee of intent to dismiss and grounds for dismissal
2. opportunity for employee to explain his or her side
3. notice of decision to dismiss
In authorized causes, due process means written notice of dismissal to the employee specifying the
grounds, at least 30 days before the date of termination.
The inability of a probationary employee to meet the employer's prescribed standards of performance
made known to him or her at the time of hiring is also a just cause for dismissal.

Work Days and Work Hours

Work Day refers to any day during which an employee is regularly required to work. Hours of Work
refer to all the time an employee renders actual work, or is required to be on duty or to be at a
prescribed workplace. The normal hours of work in a day is 8 hours. This includes breaks or rest period
of less than one hour, but excludes meal periods, which shall not be less than one hour.
An employee must be paid his or her wages for all hours worked. If all or any part of his or her regular
work hours falls between 10:00 p.m. to 6:00 a.m., he or she shall be entitled to a night shift pay in
addition to his or her regular work hours, or works for more than 8 hours in one day, he or she shall be
entitled to overtime pay, except when he or she is classified as managerial or field personnel, or is one
who works in the personal service of another, or is one who is paid by result.
An employee may not be compelled to work overtime except during war, emergencies, disasters or
calamities; when urgent repairs need to be undertaken; when work is necessary to preserve perishable
goods, avoid serious obstruction or prejudice to the employer's business; or take advantage of favorable
weather conditions.

Wage and wage-related benefits

Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered to
an employer. This includes overtime, night differential, rest day, holiday and 13th month pay. It also
includes the fair and reasonable value of board, lodging and other facilities customarily furnished by
the employer.
Wage may be fixed for a given period, as when it is computed hourly, daily or monthly. It may also be
fixed for a specified task or result. If wage is for a fixed period, the minimum wage for a regular 8-hour
workday shall not be lower than the minimum daily wage applicable to the place of work as determined
by the Regional Tripartite Wage and Productivity Board having jurisdiction over the employer.
If wage is paid by result, the worker shall receive at least the prescribed minimum wage for 8 hours of
work. The amount may be increased or reduced proportionately if work rendered for more or less than
8 hours a day.
An employer cannot make any deduction from an employee's wage except for insurance premiums
with the consent of the employee, for union dues, or for withholding taxes, SSS premiums and other
deductions expressly authorized by law.

How long should probationary employment be?

Probationary period should not exceed six (6) months from the date the employee started working. One
becomes a regular employee upon completion of his six-month period of probationary. (Art. 281) The
same is subject to exceptions.
The exceptions to the imposition of a six (6) month of probationary period of employment include the
following:
1. when the employer and the employee mutually agree on a shorter or longer period
2. when the nature of work to be performed by the employee requires a longer period
3. when a longer period is required and established by company policy.

When is an employee considered a regular employee?

An employment is deemed regular where an employee:
1. has been engaged to perform activities which are usually necessary or desirable in the usual
business or trade of the employer or
2. has rendered at least one (1) year of service, whether such service is continuous or broken, with
respect to the activity in which he is employed. (Art. 280)

Employment of women

Nightwork prohibition unless allowed by the Rules:

• in industrial undertakings from 10PM to 6AM
• in commercial/non-industrial undertakings from 12MN to 6AM
• in agricultural undertakings, at night time unless given not less than 9 consecutive hours of rest
Welfare facilities must be installed at the workplace such as seats, separate toilet rooms, lavatories,
dressing rooms.
Prohibition against discrimination with respect to pay (i.e. equal pay for work of equal value),
promotion, training opportunities, study and scholarship grants.

Employment of Young Workers/ Children

Minimum employable age is 15 years. A worker below 15 should be directly under the sole
responsibility of parents or guardians; work does not interfere with child's schooling/normal
development.
No person below 18 years of age can be employed in a hazardous or deleterious undertaking.

Safe working conditions

Employers must provide workers with every kind of on-the-job protection against injury, sickness or
death through safe and healthful working conditions. Protection includes provision of:
• Appropriate seats, fighting and ventillation
• Adequate passageways, exits and firefighting equipment
• Separate facilities for men and women
• Appropriate safety devices like protective gears, masks, helmets, safety shoes, boots, coats or
uniforms
• Medicine, medical supplies or first aid kits
• Free medical and dental services and facilities, the kind of which depends on the number of
employees and the nature of the work.
Jobs may be hazardous or non-hazardous. Hazardous jobs are those which expose the employee to
dangerous environment elements, including contaminants, radiation, fire, poisonous substances,
biological agents and explosives, or dangerous processes or equipment including construction, mining,
quarrying, blasting, stevedoring, mechanized farming and operating heavy equipment.

Who enforces OSH Health Standards?

The Secretary of Labor and Employment, through the Regional Director or other authorized
representative, enforces the OSH Standards in the exercise of victorial and enforcement powers.

EC Benefits for Work-Related Contingencies

The Employees' Compensation Program is the tax-exempt compensation program for employees and
their dependents created under Presidential Decree No. 626 which was implemented in March 1975.
The benefits include:
• Medical benefits for sickness/injuries
• Disability benefits
• Rehabilitation benefits
• Death and funeral benefits
• Pension benefits

What safety measures must be observed within the premises of establishments?

Establishments must observe the following safety measures:
• Building premises shall have adequate fire, emergency or danger signs and safety instructions of
standard colors and sizes visible at all times;
• Other visible signs that may be needed to direct the driver of motorized vehicle such as STOP,
YIELD, and DO NOT ENTER, properly positioned within the compound of the establishment
shall be used to increase safety especially during the night;
• Handicapped employees shall be restricted only to designated workplaces. As far as practicable
and feasible they shall be provided with facilities for safe and convenient movement within the
establishment;
• Good housekeeping shall be maintained at all times through cleanliness of building, yards,
machines, equipment, regular waste disposal, and orderly arrangement of process operations,
storage and filing materials;
• Adequate dressing rooms, locker rooms, comfort rooms and lavatories separate for male and
female workers shall be provided.

What is visitorial power?

Visitorial power refers to the authority to conduct inspections or investigations at the premises of an
employer at any time of the day or night whenever work is being undertaken. This is necessary to
determine violations or to enforce the rights of workers under the Labor Code. Under this power, the
employer may be required to submit reports and other documents to determine any violation.

What is enforcement power?

Enforcement power refers to the authority of the Secretary or the Regional Director to order an erring
employer, after due notice and hearing, to comply with labor standards and issue a writ of execution in
case of non-compliance. If the violation poses grave and imminent danger to the health and safety of
workers, suspension or cessation of the operations affected may be 24 hours from the issuance of the
order to determine whether or not the suspension or cessation of the operations shall be lifted.

What does safety and health in the workplace mean?

Safety refers to the physical or environmental conditions of work which comply with prescribed
Occupational Safety and Health (OSH) Standards and which allow the workers to perform his or her
job without or within acceptable exposure to hazards. Occupational safety also refers to practices
related to production and work process.
Health means a sound state of the body and mind of the workers that enables him or her to perform the
job normally.
What does OSH Standards mean?

OSH Standards are mandatory rules and standards set and enforced to eliminate or reduce occupational
safety and health hazards in the workplace.

What is the purpose of OSH Standards?

OSH Standards aim to provide at least the minimum acceptable degree of protection that must be
afforded to every worker in relation to the working conditions and dangers of injury, sickness or death
that may arise by reason of his or her occupation. The provision of OSH Standards by the State is an
exercise of the police power, with the intention of promoting the welfare and well-being of workers.

What are covered by the General OSH Standards?

All establishment, workplaces and other undertakings are covered, including agricultural enterprises
whether operating for profit or not, except:
• Residential places exclusively devoted to dwelling purposes;
• Those directly engaged in land, sea and air transportation, except their dry dockers, garages,
hangers and maintenance, and repair shops and offices;
• The activities of a lessee regarding the safety of the mining claim or lease, including mines
safety, mineral conservation and pollution in establishments or work places falling under mining
industry.

What is the minimum standard on safety and health in the workplace?

The OSH Standards provide that every company shall keep and maintain its workplace free from work
hazards that are likely to cause physical harm to the workers or damage to property. Thus, the worker is
entitled to be provided by the employer with:
• Appropriate seats, lighting and ventilation;
• Adequate passageways, exits and fire fighting equipment;
• Separate facilities for men and wome;
• Appropriate safety devices like protective gears, masks, helmets, safety boots, coats or first-aid
kits;
• Medicines, medical supplies or first-aid kits;
• Free medical and dental services and facilities.

What other safety requirements should employers provide their employees?

Employers must provide their employees with the following instruments and/or working stations:
 • Appropriate protective equipment and clothing such as overall head coverings, goggles, gloves
aprons and respirators;
• A properly designed exhaust system and waste disposal, local exhaust or general ventilation to
keep toxic fumes or gases;
• Adequate number of fire extinguishers in the workplace;
• Designated safe smoking and welding areas far from combustible, flammable or explosive
materials, containers filled with explosives or flammable substances, and containers that have
held explosives or flammable materials.

How are the labor standards enforced?

Labor standards are enforced through the inspectorate system. Thus, every employer shall give to the
Secretary or his/her duly authorized representative access to its premises or records at any time of the
day or night when there is work to determine and effect compliance.
Every establishment or workplace shall be inspected at least once a year. However, special inspection
visits may be authorized by the Regional Office to investigate work-related accidents, occupational
illness or dangerous occurrences, conduct surveys, follow-up inspection recommendations, or to
conduct an investigations or inspections upon request of an employer, worker or labor union in the
establishment.

If a worker or representative of workers or any concerned person believes that such a violation of
the OSH Standards exists which threatens physical harm or poses imminent danger to life, what
shall he do to correct the danger?

The said worker or workers' representative shall request an inspection with the Regional Office in their
area by giving full particulars or details regarding such violation or danger.

What are considered hazardous work place?

Workplace are hazardous if:

• The nature of the work exposes workers to dangerous environmental elements, contaminants or
work conditions, including ionizing radiation, chemicals, fire, flammable substances, noxious
components, and the like;
• The workers are engaged in construction work, logging, fire-fighting, mining, quarrying,
blasting, stevedoring, dock work, deep-sea fishing and mechanized farming;
• The workers use or are exposed to heavy or power-driven machinery or equipment;
• The workers are engaged in the manufacture or handling of explosives and other pyrotechnic
products;
• The workers use or are exposed to biological agents such as bacteria, viruses and other
parasites.
What are the duties and responsibilities of the employers and the employees in relation to
enforcement and compliance with OSH Standards in the workplace?

Duties of the employers

• Adopt administrative policies on safety in accordance with the provisions of the Standards;
• Report to the Regional Director or his/her duly authorized representative the policies adopted
and the safety organization established;
• Submit report to the Regional Director or his/her duly authorized representative once in every
three months on the safety performance, safety committee meetings and its recommendations
and measures taken to implement the recommendation;
• Act on recommended safety measures;
• Provide access to appropriate authorities.
Duties of the employees
• Follow safety policies;
• Report unsafe conditions and practices to the Supervisor;
• Serve as member of the Health and Safety Committee;
• Cooperate with Health and Safety Committee;
• Assist government agencies in the conduct of safety and health inspection.

What is a Health and Safety Committee?

A Health and Safety Committee is a group of employees or workers and management that plans and
makes policies in all matters pertaining to safety and health in the workplace. All establishments are
required to have a Health and Safety Committee.

When shall an establishment organize a Health and Safety Committee?

In every workplace, a Health and Safety Committee shall be organized within sixty days after the
Standards take effect, and for new establishments, within one month from the date business starts
operating. In both cases the Health and Safety Committee shall reorganize every January of the
following year:

What are the types and composition of a Health and Safety Committee?

The types and composition of the Health and Safety Committee shall be organized according to the
number of employees or workers in a workplace.
Type-A:
In every workplace having a total of over 400 workers, the following shall compose the Health and
Safety Committee:
 • Chairman - the manager or his/her authorized representative who must be a top operating
official;
• Members - two department heads; four workers (must be union members, if organized); the
company physician;
• Secretary - safety man.
Type-B:
In every workplace having a total of over 200 to 400 workers, the following shall compose the Health
and Safety Committee:
• Chairman - the manager or his/her authorized representative who must be a top operating
official;
• Members - one supervisor, three workers (must be union members, if organized), the company
physician or the company nurse;
• Secretary - the safety man.
Type-C:
In every workplace with 100 to 200 workers, the following shall compose the Health and Safety
Committee:
• Chairman - the manager or his/her authorized representative;
• Members - one foreman, three workers (must be union members, if organized) and the nurse
• Secretary - the part-time safety man.

Type-D: (Line type of organization may be adopted)

In every workplace with less than 100 workers, the following shall compose the Health and Safety
Committee:
• Chairman - the manager;
• Members - one foreman, three workers (must be union member, if organized), the nurse/first-
aider;
• Secretary - the part-time safety man.
Type-E: Joint Committee
When two or more establishments are housed under one building, the Health and Safety Committee
organized in each workplace shall form themselves into a Joint Coordinating Committee to plan and
implement programs and activities concerning all establishment.
• Chairman - the Chairman of the establishment;
• Members - two supervisors from two different establishments and two workers from two
different establishments (union member, if organized);
• Secretary - appointed by the Chairman (if high-rise, the Secretary shall be the Building
Administrator)

What are the duties of the Health and Safety Committee?

The Health and Safety Committee shall:

 • Plan and develop accident prevention programs in the workplace;
• Inspect workplace to detect unsafe conditions;
• Review reports of inspection, results of accident investigations and implementation of accident
prevention program;
• Conduct safety meetings at least once a month;
• Submit report to the manager/owner on its meetings and activities;
• Provide necessary assistance to government inspecting authorities in the proper conduct of
activities relating to enforcement of the provisions of the Standards;
• Train workers in safe work habits and procedures;
• Develop and maintain a disaster contingency plan and organize such emergency service units as
may be necessary to handle disaster situations pursuant to the Emergency Preparedness Manual
for Establishments of the Office of Civil Defense.

What are the authorized causes for termination of employment?

Articles 283 and 284 enumerate the authorized causes for termination of employment, to wit:
1. installation of labor-saving devices
2. redundancy
3. retrenchment
4. closure or cessation of business
5. disease

Payment of wages

• Payment of wages shall be made in cash and at or near the place of work. (Art. 102 & 104)
• Payment maybe received from a bank upon written request by a majority of workers. (Sec. 7
R.A. 6727)
• Wages shall be paid directly to the workers. (Art. 105)
• Payment shall be made at intervals not exceeding sixteen (16) days. (Art. 103)
• Wage deduction must be authorized by law. (Art. 113)
• "Labor only contracting" is prohibited wherein the person supplying workers to an employer is
only an agent of the employer. (Art. 106)
• In the event of bankruptcy or liquidation of an employer's business, his/her workers shall enjoy
first preference as regards their wages and other monetary claims before claims of the
government and other creditors may be paid. (Art. 110)

Other monetary benefits

• 13th month pay: 1/12 of the total basic salary earned by an employee within a calendar year.
P.D. 851 (Sec. 1)
• Holiday pay: Every worker shall be paid his/her regular daily wage during regular holiday.
 (Art. 94)
• Premium pay: Additional compensation for work performed within eight (8) hours on non-
working days, such as rest days and special days. (Art. 93)
1. For work performed on rest days or on special days - plus 30% of the daily rate of 100% or a
total of 130%.
2. For work performed on a rest day which is also a special day - plus 50% of the daily rate of
100% or a total of 150%.
3. For work performed on a regular holiday which is also the employee's rest day - plus 30% of the
regular holiday rate of 200%.
• Overtime pay: Additional compensation for work performed beyond eight (8) hours a day
beginning at the time an employee actually started working. (Art. 87)
• Night shift pay: Additional pay of not less than 10 percent (10%) of his/her regular wage for
each hour of work performed between 10:00 in the evening and 6:00 in the morning. (Art. 86)
• Service incentive leave: For every employee who has rendered at least one year of service shall
be entitled to a yearly service incentive leave of five days with pay. (Art. 95)
• Service charges by hotels and restaurants: 85% shall be distributed for all covered employees
and 15% for management. (Art. 96)

What is the prescriptive period for money claims arising from any of the provisions of the Labor
Code?

The prescriptive period is three (3) years from accrual of cause of action. (Art. 291)

Weekly rest day

It shall be the duty of every employer to provide each of his/her employees a weekly rest period of not
less than 24 consecutive hours after every six (6) consecutive normal workdays. (Art. 91)

What are the requirements for closure of business or cessation of operations?

The three (3) requirements necessary for a valid cessation of business operations are the following:
1. service of a written notice to the employees and the DOLE at least one (1) month before the
intended date of closure/cessation
2. the closure or cessation of business operations is bona fide in character
3. payment to the employees of termination pay amounting to at least one-half (1/2) month pay for
every year of service, or one (1) month pay whichever is higher. (Art. 83)

How can an employer effect the dismissal of an employee?

The employer shall furnish the worker whose employment is sought to be terminated a written notice
containing a statement of the causes for the termination and shall afford the latter ample opportunity to
be heard and to defend himself with the assistance of his representative, if he so desires, in accordance
with the company rules and regulations promulgated pursuant to the guidelines set by the DOLE. Any
decision taken by the employer shall be without prejudice to the right of the worker to contest the
validity or legality of his dismissal by filing a complaint with the regional branch of the NLRC. (Art.
277 (b))