CONSTITUTIONAL PROVISIONS RELATED TO LABOR
The Congress shall give highest priority to the
Article II
Section 9. The State shall promote a just and dynamic
social order that will ensure the prosperity and
independence of the nation and free the people from poverty
through policies that provide adequate social services,
promote full employment, a rising standard of living, and an
improved quality of life for all. Section 10. The State shall
promote social justice in all phases of national development.
Section 11. The State values the dignity of every human person and
guarantees full respect for human rights.
Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect their
physical, moral, spiritual, intellectual, and social well-being.
It shall inculcate in the youth patriotism and nationalism,
and encourage their involvement in public and civic affairs.
Section 14. The State recognizes the role of women in
nationbuilding, and shall ensure the fundamental equality
before the law of women and men.
Section 18. The State affirms labor as a primary social
economic force. It shall protect the rights of workers and
promote their welfare.
Section 20. The State recognizes the indispensable role of
the private sector, encourages private enterprise, and
provides incentives to needed investments.
Article III
Section 1. No person shall be deprived of life, liberty, or
property without due process of law, nor shall any person be
denied the equal protection of the laws.
Section 4. No law shall be passed abridging the freedom
of speech, of expression, or of the press, or the right of the
people peaceably to assemble and petition the government
for redress of grievances.
Section 8. The right of the people, including those
employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law
shall not be abridged.
ARTICLE XIII -- SOCIAL JUSTICE AND HUMAN RIGHTS
1
Section 1.
enactment of measures that protect and enhance the right of
all the people to human dignity, reduce social, economic,
and political inequalities, and remove cultural inequities by
equitably diffusing wealth and political power for the
common good. To this end, the State shall regulate the
acquisition, ownership, use, and disposition of property and
its increments.
Section 2. The promotion of social justice shall include
the commitment to create economic opportunities based on
freedom of initiative and self-reliance.
LABOR
Sec. 3. “The state shall afford full protection to labor,
local and overseas, organized and unorganized, and promote
full employment and equality of employment opportunities
for all. It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in
accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making
processes affecting their rights and benefits as may be
provided by law.
“The State shall promote the principle of shared
responsibility between workers and employers and the
preferential use of voluntary modes in setting disputes,
including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
“The State shall regulate the relations between workers
and employers, recognizing the right of labor to its just share
in the fruits of production and the right of enterprises to
reasonable returns on investments, and to expansion and
growth.” (Section
3 (Labor), Article XIII [Social Justice and Human Rights] of the 1987).
The Rights of Labor Guaranteed by the Constitution (Sec. 3, Art.
XIII)
1. full protection to labor;
2. promotion of full employment and equality of employment The State shall promote the principle of shared responsibility
opportunity to all; between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
3. guarantee of right of workers to self-organization; and shall enforce their mutual compliance therewith to
foster industrial peace.
4. collective bargaining and negotiations;
The State shall regulate the relations between workers and
5. right to peaceful concerted activities including the right to strike in employers, recognizing the right of labor to its just share in
accordance with law; the fruits of production and the right of enterprises to
reasonable returns on investments, and to expansion and
6. right to security of tenure; growth.

7. right to human conditions of work;

Article II, Section 18
8. right to participate in policy and decision-making affecting their
rights and benefIts. “The State affirms labor as a primary social economic force. It
shall protect the rights of workers and promote their welfare.”
4. WOMEN
Article XIII, Section 3
Section 14. The State shall protect working women by “The State shall afford full protection to labor.” (par. 1)
providing safe and healthful working conditions, taking into “It shall guarantee the rights of all workers to:
account their maternal functions, and such facilities and a. Self-organization
opportunities that will enhance their welfare and enable b. collective bargaining and negotiations
them to realize their full potential in the service of the c. peaceful concerted activities including the right to
nation. strike in accordance with law
d. Security of tenure
Article II, Section 18 of the 1987 Constitution provides e. humane conditions of work
that “The State affirms labor as a primary social economic f. living wage
force. It shall protect the rights of workers and promote their g. participate in policy and decision-making process
welfare.” Article XIII, Section 3 of the 1987 Constitution affecting their rights and benefits as may be provided
provides that by law.” (par.2)
“The State shall afford full protection to labor, local and “The State shall promote the principle of shared responsibility between
overseas, organized and unorganized, and promote full workers and employers.” (par. 3)
employment and equality of employment opportunities for “The State shall regulate the relations between workers and
all. employers.” (par. 4)
It shall guarantee the rights of all workers to self-
organizations, and peaceful concerted activities, including
the right to strike in accordance with law. They shall be GENERAL LABOR CONCEPTS
entitled to security of tenure, humane conditions of work,
and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits 1. A FAIR DAY’S WAGE FOR A FAIR DAY’S LABOR
as may be provided by law. The age-old rule governing the relation between labor and
capital, or management and employee of a "fair day's wage
2
for a fair day's labor" remains as the basic factor in
determining employees' wages. If there is no work performed
by the employee there can be no wage or pay unless, of
course, the laborer was able, willing and ready to work but
was illegally locked out, suspended or dismissed, or
otherwise illegally prevented from working (Caltex Refinery
Employees Association [CREA] vs. Brillantes, 279 SCRA
218)
2. RULE-MAKING POWER
It is true that police power is the domain of the
legislature, but it does not mean that such an authority may
not be lawfully delegated. The Labor Code itself vests the
Department of Labor and Employment with rule-making
powers in the enforcement whereof.
(PASEI vs. Drilon, June 30, 1988)
3. CONSTRUCTION IN FAVOR OF LABOR
In interpreting the Constitution’s protection to labor
and social justice provisions and the labor laws and rules
and regulations implementing the Constitutional mandate,
the SC adopts the liberal approach which favors the exercise
of labor rights. (Meralco vs. NLRC, G.R. No. 78763. Jul.12,
1989)
While the Constitution is committed to the policy of
social justice and the protection of the working class, it
should not be supposed that every labor dispute shall be
automatically resolved in favor of labor. It is mandated that
there be equal protection and respect not only the laborer’s
side but also the management and/or employer’s side. The
law, in protecting the rights of the laborer, authorizes neither
oppression nor self-destruction of the employer. (Colgate
Palmolive Philippines vs Ople, G.R. No. 73681. June
30,1988)
4. EMPLOYER-EMPLOYEE RELATIONSHIP
1. FOUR FOLD TEST
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In determining whether a given set of circumstances
constitute or exhibit an employer-employee relationship, the
accepted rule is that the elements or circumstances relating
to the following matters shall be examined and considered:
a. selection and engagement of the employees
b. payment of wages
c. power of dismissal
d. power to control the employees’ conduct
2. The “control test” is the most crucial and determinative indication
of the presence or absence of an employer-employee relationship.
Absence of such despite the presence of the other three
elements will not suffice for the relationship to exist.
Not every form of control will have the effect of establishing an
employer-employee relationship. A line should be drawn between:
a. Rules that merely serves as guidelines, which only
promote
the result. In such case, no employer-employee relationship exist.
b. Rules that fix the methodology and bind or restrict the
party hired to the use of such means of methods. These
address both the result and means employed to achieve
it and hence, employeremployee relationship exist.
3. Cases where employer-employee relationship EXISTS:
a. Jeepney drivers on boundary system (Martinez vs.
NLRC, 272 SCRA 793)
b. Drivers or helpers of salesman (Alhambra Industries
vs.
CIR, 355 SCRA 553)
c. Handicraft workers on “pakyaw system” (Dy Keh Beng
vs. Int’l. Labor, 90 SCRA 161)
d. Musicians who were engaged by musical director for
background music in making of movies (LVN vs. Phil.
Musicians Guild, 1 SCRA 132)
e. Tailors, pressers and stitchers in COD tailoring
department (Rosario Bros vs. Ople)
4. Cases where employer-employee DOES NOT EXIST:
a. Insurance company vis-à-vis commission agents (Insular
Life vs. NLRC, 179 SCRA 459)
b. Company vs. Collecting agents on commission basis
(Singer Sewing Machine vs. Drilon, 193 SCRA
270)
c. Softdrinks company vs. independent contractors selling
softdrinks (Mafinco vs. Ople, 70 SCRA 139)
d. Shoe shine boys (Besa vs. Trejano, 146 SCRA 501)
e. TV anchors and radio broadcasters and columnists of
newspapers.
1. LAST IN, FIRST OUT RULE (LIFO RULE)
What is contemplated in the rule is that when there are two
or more employees occupying the same position in the
company affected by the retrenchment program, the last one
employed will necessarily be the first one to go.
In the absence of a CBA provision, the rule yields to the
sound exercise of management prerogatives (De La Salle
University vs. De La Salle University Employees
Association).
2. ONE UNION-ONE COMPANY POLICY
As a general rule, there should only be one union in one
employer unit. The proliferations of unions in one employer
unit should be discouraged unless there are compelling
reasons which would deny a certain class of employees the
right to self-organization (Philtranco Service Enterprises
vs. Bureau of Labor Relations, 239 SCRA 508).
However, the rule is not without exception. The exclusion of
the subject employees from the rank and file bargaining unit
and the CBA is definitely a “compelling reason” for it
completely deprived them of the chance to bargain
collectively with their employer, and are, thus left with no
recourse but to group themselves into a separate and
distinct bargaining unit and form their own organization.
4
PROBATIONARY EMPLOYMENT
1. Probationary employment exists where the
employee, upon his engagement is made to undergo a
trial period during which the employer determines his
fitness to qualify for regular employment based on
reasonable standards made known to him at the time
of his engagement (Art 282, LC).
2. In all cases involving employees on probationary
status, the employer shall make known to the
employee at the time he is hired, the standards by
which he will qualify as a regular employee (A.M.
Oreta & Co., Inc. vs. NLRC). As a general rule, in the
event the employer neglects or fails to inform the
employee at the time of engagement the standard for
him to qualify as a regular employee, he cannot be
terminated for failure to comply with the criteria for
regularship. The employee concerned can only be
removed for just or authorized causes.
3. A probationary employee may be terminated on two
grounds:
a. for just cause
b. when he fails to qualify as a regular employee
in accordance with reasonable standards
made known by the employer to the employee
at the time of his engagement
4. An employee who is allowed to work after a
probationary period shall be considered a regular
employee (Art.281, LC). However, the employer and
employee may, by agreement, extend the
probationary period of employment beyond six (6)
months (Mariwasa Manufacturing, Inc. vs.
Leogardo).
Voluntary Resignation, ONCE ACCEPTED, cannot be
withdrawn without the consent of the employer.
KINDS OF EMPLOYMENT
1. REGULAR EMPLOYMENT
An employee is deemed to be regular where he has been
engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer, the
provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement of the
parties (Art. 280, LC)
The primary standard is the reasonable connection
between the particular activity performed by the
employee in relation to the usual business or trade of
the employer. The test is whether the former is usually
necessary or desirable in the usual business or trade of
the employer. The connection can be determined by
considering the nature of the work performed and its
relation to the scheme of the particular business or trade
in its entirety.
2. TERM EMPLOYMENT
It is a contract of employment for a definite period which
terminates by its own terms at the end of such period (Brent
School vs. Zamora, 181 SCRA 702).
Criteria for fixed term employment contracts so that
the same will not circumvent security of tenure (Phil.
National Oil Company-Energy Development Corp. vs.
NLRC, et.al., 239 SCRA 272):
1) The fixed period of employment was
knowingly and voluntarily agreed upon by the
parties, without any force, duress or improper
pressure being brought to bear upon the
employee and absent any other
circumstances vitiating his consent; or
2) It satisfactorily appears that the employer and
employee dealt with each other on more or less
equal terms with no moral dominance
whatever being exercised by the former on the
latter.
5
3. PROJECT EMPLOYMENT
It is one wherein the employee is assigned to carry out a
“specific project or undertaking,” the duration and scope of
which were specified at the time the employees were engaged
for that project.
2 Distinguishable Types of Project Activities (ALU-
TUCP vs. NLRC, 234 SCRA 328):
1. A particular job or undertaking that is
WITHIN THE REGULAR OR USUAL BUSINESS of the
employer company, but which is DISTINCT and
SEPARATE, and IDENTIFIABLE as such, from the
other undertakings of the company. Such job or
undertaking begins and ends at determined or
determinable times.
e.g. A construction company which has construction
projects in Manila, Mandaluyong and Baguio.
2. A particular job or undertaking that is
NOT WITHIN THE REGULAR BUSINESS of the
corporation. Such a job or undertaking must also be
IDENTIFIABLY SEPARATE and DISTINCT from the
regular business. The job or undertaking also begins
and ends at determined or determinable times.
e.g. A steel-making company undertakes projects related
to breeding and production of fish or cultivation of vegetables.
General Rule: LENGTH OF SERVICE is not controlling in project
employment (Hilario Rada vs. NLRC, 205 SCRA 69).
Exception: Although the work to be performed is only
for a SPECIFIC PROJECT or SEASONAL, where a person
thus engaged has been performing the job for at least one
year, even if the performance is not continuous or is merely
intermittent, the law deems the REPEATED and
CONTINUING NEED FOR ITS PERFORMANCE as being
sufficient to indicate the necessity or desirability of that
activity to the business or trade of the employer.
The employment of such person is also then deemed to be
REGULAR WITH RESPECT TO SUCH ACTIVITY and WHILE
SUCH ACTIVITY EXISTS (Magsalin, et.al. vs. National
Organization of Working Men, et al., May 9, 2003).
4. SEASONAL EMPLOYMENT
Seasonal workers are those who are called to work from
time to time according to the occurrence of varying need
during a season, and are laid off after completion of the
required phase of work.
 Seasonal workers who works for more than one season are
deemed to have acquired regular employment.
 Seasonal workers during the off season are merely considered
on leave.
 They are also entitled to separation pay.
5. CASUAL EMPLOYMENT
It is one wherein an employee is engaged to perform
activities which are not necessary or desirable in the usual
trade or business of the employer.
Pre-week in Labor Law and Social Legislation - JOBL NOTES
JOB CONTRACTING AND LABOR-ONLY CONTRACTING
1. Labor-only contracting
1) the person supplying workers to an employer
does not have substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others; and
2) the workers recruited and placed by such
person are performing activities which are directly
related to the principal business of such employer
(Baguio, et.al vs. NLRC, et al., 202
SCRA 465)
2. Job Contracting
1) the contractor caries on an independent
business and undertakes the contract work on his
own account and under his own responsibility
6
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
2) 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.
3. What is the effect of a finding that a contractor is a labor-only
contractor?
A finding that a contractor is “LABOR-ONLY” contractor is
equivalent to declaring that there is an employer-employee
relationship between the principal and employees of the
laboronly contractor.
In such cases, the person or intermediary shall be
considered merely as an agent of the employer, who shall be
responsible to the workers for a more comprehensive
purpose, not only for unpaid wages but for all claims under
the Labor Code and ancillary Laws (San Miguel Corp. vs.
MAERC Integrated Service, Inc., et al., G.R. No. 144672,
July 10, 2003).
In contrast, the liability of a principal in
LEGITIMATE JOB CONTRACTING is for a limited purpose,
where he becomes jointly and severally liable with the job
contractor only for the payment of the employees’ wages but
subject to reimbursement from the independent job
contractor.
4. What is the effect for failure of owner of project to require the
contractor to post bond?
The owner of the project must answer for whatever liabilities
the contractor may have incurred to his employees; without
prejudice on the part of the project owner to seek
reimbursement from the contractor. (Baguio, et al. vs.
NLRC)
MANAGEMENT PREROGATIVE
1. What are included in the term “management prerogatives?
a. right to CONDUCT business
 b. right to PRESCRIBE RULES 4. Management is at liberty, absent any malice on its part, to abolish
c. right to SELECT and HIRE employees positions which it deems no longer necessary.
d. right to TERMINATE employees • It is management prerogative to merge job functions
e. right to FAIR RETURN OF INVESTMENT and EXPANSION in line with streamlining of the company to cut costs
of business even if an employee would thereby lose his
employment due to abolition of his position.
2. Transfer of Employees
• Labor laws discourage interference with an
• As a general rule, the employer has the inherent right employer’s judgment in the conduct of his business.
to transfer or assign an employee subject only to the
condition that it not be motivated by 1)
5. Limitations in the exercise of management prerogatives:
discrimination or 2) bad faith (PT&T vs. Laplana,
1) imposed by LAW
199 SCRA 485).
2) provisions in the COLLECTIVE BARGAINING
• An employee’s right to security of tenure does not AGREEMENT
give him such vested right in his position as would 3) general principles of FAIR PLAY and JUSTICE
deprive the company of its prerogative to change his
assignment or transfer him. It is the prerogative of
management to transfer an employee where he can RIGHT TO SELF-ORGANIZATION
be most useful to the company (Blue Dairy
Corporation vs. NLRC, 314 SCRA 401). 1. What is the rationale for unionization?
• Transfer, even if due to promotion, cannot be done The interest of the individual worker can better be protected
without employee’s consent. on the whole by a strong union aware of its moral and legal
obligations to represent the rank-and-file faithfully, and
• Re-assignment pending administrative
secure for them the best wages and working terms and
investigations of irregularities allegedly committed
conditions.
by an employee fall within the ambit of management
prerogative. The purpose is no different from that of
2. Right to join union includes “right not to join”
preventive suspension which management could
(Victorino vs. Elizalde Rope Workers, 59 SCRA 54)
validly impose as disciplinary measure for the
Corollary to the right to join is the prerogative not to join,
protection of the company’s property pending
affiliate with or assist a labor union. Therefore, to become a
investigation of any malfeasance or misfeasance
union member, an employee must, as a rule, not only signify
committed by the employee (Consolidated Food
the intent to become one, but also take some positive steps
Corp. vs. NLRC, 315 SCRA 129).
to realize the intent.
3. When is there constructive dismissal?
3. Employees who CANNOT form, join or assist labor
A transfer amounts to constructive dismissal when the
organizations:
transfer is unreasonable, inconvenient, or prejudicial to the
a. Managerial employees
employee, and involves a demotion in rank or diminution of
b. Confidential employees
salaries, benefits and other privileges.
c. Government employees, including GOCCs with original
charter
d. employees who are MEMBERS of a cooperative

7
 e. employees of International Organizations or Specialized
Agencies which are registered with the United Nations
and which enjoy diplomatic immunity
f. Aliens without valid working permits; or Aliens with
valid working permits but are nationals of a country
which do not grant Filipinos to exercise the right of
self-organization and to join or assist labor
organizations.
4. a) Distinguish Certification Election from Consent Election
b) Distinguish Re-run election from Run-off election
c) Distinguish Contract Bar Rule, Certification Year Rule and
Deadlock Bar Rule
a) Certification election is the
process of determining the sole and exclusive
bargaining agent of the employees in an
appropriate bargaining unit for purposes of
collective bargaining while Consent Election
is an agreed one, the purpose being merely to
determine the issue of majority representation
of all the workers in the appropriate collective
bargaining unit.
b) Re-run is held in two
instances: 1) if one receives a plurality of vote
and the remaining choices results in a tie; 2)
if all choices received the same number of
votes; while Run-off takes place between the
unions who received the two highest number
of votes where not one of the unions obtained
the majority of the valid votes cast, provided
the total union votes is at least 50% of the
votes cast.
c) In Contract Bar Rule,
certification election can only be entertained
during the FREEDOM PERIOD, within 60
days prior to the expiry date of the 5th year of
the CBA. In Certification Year or One-year
ban rule, no certification election may be held
8
within 1 year from the DATE OF THE
ISSUANCE OF A FINAL
CERTIFICATION ELECTION RESULT. And the Deadlock
Bar Rule simply provided that a petition for certification
election can only be entertained if there is NO PENDING
BARGAINING DEADLOCK SUBMITTED TO CONCILIATION
or HAD BECOME THE SUBJECT OF A VALID NOTICE OF
STRIKE OR LOCKOUT.
5. ROLE OF THE EMPLOYER IN A CERTIFICATION ELECTION
General rule: The employer is NOT A PARTY in a certification
election, which activity is the sole concern of workers.
Exception: Where the employer has to FILE A PETITION
FOR CERTIFICATION ELECTION pursuant to Art. 258 of LC
because it was requested to bargain collectively. Even then,
it becomes a neutral bystander.
Exception to the exception: In the event a union files a
petition for certification election when it is precluded from
doing so due to any of the following reasons: 1) CONTRACT
BAR RULE, 2) DEADLOCK BAR RULE or 3) CERTIFICATION
YEAR RULE, the employer can nevertheless actively
participate in the proceedings and oppose the petition for
certification election.
6. What are the mandatory requirements for a local or chapter to
become a legitimate labor organization?
General rule: A local or chapter shall enjoy Book V
rights as a legitimate labor organization only upon
submission of the following to the Bureau of Labor Relations
(BLR)
a) a charter certificate, within 30 days from its
issuance by the labor federation or national
union; and
b) the constitution and by-laws, a statement on
the set of officers, and the books of accounts,
all of which are certified under oath by the
secretary or treasurer, as the case may be, of
such local or chapter, and attested to by its
president.
Exception: ESTOPPEL (ALU vs. Quisumbing, 305 SCRA
762). A party is estopped from challenging the personality of an
unregistered local union as the holding of the certification election was
“by agreement of the parties.” Hence, it thereby acknowledged the
LEGAL EXISTENCE of the unregistered local union by entering into
such an agreement.
7. Whether or not a petition to cancel/revoke registration is a
prejudicial question to the petition for certification election?
No. An order to hold a certification election is proper despite
the pendency of the petition for cancellation of the
registration certificate of the union. The rationale for this is
that at the time the union filed its petition, it still had the
legal personality to perform such act absent an order
directing the cancellation (Pepsi Cola Products Phils. vs.
Secretary of Labor, 312 SCRA 104).
8. Can the legitimacy of a labor union, which has been issued duly
issued a certificate of registration, be questioned in the certification
election proceedings?
No. After a certificate of registration is issued to a union,
its legal personality cannot be subject to collateral attack. It
may be questioned only in an independent petition for
cancellation (Tagaytay Highlands International Golf
Club, Inc. vs. Tagaytay Highlands Employees Union-
PTGWO, G.R. No. 142000, January 22, 2003).
9. What is the SUBSTITUTIONARY DOCTRINE?
It is a principle in labor law which states that even during
the effectivity of a collective bargaining agreement executed
between the employer and employees thru their agent, the
employees can change said agent BUT THE CONTRACT
CONTINUES TO BIND THEM UP TO ITS EXPIRATION DATE.
The principle applies to a situation when there occurs a shift
in employees’ union allegiance after the execution of a
collective bargaining contract.
COLLECTIVE BARGAINING
1. What is Collective Bargaining Agreement (CBA)?
It refers to a contract executed upon request of either the
employer or the exclusive bargaining representative
9
incorporating the agreement reached after negotiations with
respect to wages, hours of work and all other terms and
conditions of employment.
2. Mandatory aspects of bargaining:
a. Wages, hours of work and other terms and conditions of
employment
b. CBA should not provide for benefits below the standard
prescribed by law, award or order.
c. CBA should include the mandatory provisions such as
grievance procedure, family planning, “no strike-no lockout”
clause, cooperative scheme, Labor Management Council
3. What is the “duty to bargain collectively” under Art. 252 of the
LC?
It means the performance of a mutual obligation to meet
and convene promptly and expeditiously in good faith for the
purpose of negotiating an agreement with respect to wages,
hours of work and all other terms and conditions of
employment, but such duty does not compel any party to
agree to a proposal or to make any concession.
4. What is the effect for failure to exhaust all steps in the grievance
machinery?
For failing to exhaust all the steps in the grievance
machinery and arbitration proceedings provided in the CBA,
the notice of strike should be dismissed and the union
ordered to proceed with the grievance and arbitration
proceedings.
5. ULP in Collective Bargaining
a. Bargaining in bad faith
b. Refusal to bargain
c. Individual bargaining
d. Gross violation of CBA provisions
6. DIFFERENT KINDS OF UNION SECURITY
ARRANGEMENTS (EXCEPTIONS TO ULP ON INTERFERENCE
ON THE EMPLOYEES’ EXERCISE OF THEIR RIGHT TO
SELFORGANIZATION):
A. CLOSED-SHOP AGREEMENT - the employer
undertakes not to employ any individual who is not a
member of the contracting union and the said individual
once employed must, for the duration of the agreement,
remain a member of the union in good standing as a
condition for continued employment.
- does not have any retroactivity
- apply only to new hires
EXCEPTIONS:
a. employees belonging to any religious sect which
prohibit affiliation of their members with any labor
organization are not covered by such agreement—The
free exercise of religious belief is superior to contract
rights (Victoriano vs. Elizalde Rope Workers).
b. members of the rival union are not covered by such
arrangement.
SEMI-CLOSED SHOP AGREEMENT- has no requirement
for the employee to remain as member of the contracting
union in good standing as a condition for continued
employment.
B. UNION SHOP AGREEMENT -stipulation whereby any
person can be employed by the employer but once employed
such employee must, within a specific period, become a
member of the contracting union and remain as such in
good standing for continued employment for the duration of
the CBA [take note of the exceptions in the preceding
number.]
C. MAINTENANCE OF MEMBERSHIP CLAUSE - the
agreement DOES NOT require non-members to join the
contracting union BUT provides that those who are members
thereof at the time of the execution of the CBA and those
who may thereafter on their own volition become members
must for the duration of the agreement maintain their
membership in good standing as a condition for continued
employment in the company for the duration of the CBA.
10
D. PREFERENTIAL SHOP AGREEMENT – an agreement
whereby the employer merely agrees to give preference to the
members of the bargaining union in hiring, promotion or
filing vacancies and retention in case of lay-off. The employer
has the right to hire from the open market if union members
are not available.
E. AGENCY SHOP AGREEMENT - an agreement
whereby employees must either join the union or pay to the
union as exclusive bargaining agent a sum equal to that
paid by the members. This is directed against “FREE
RIDER” employees who benefit from union activities
without contributing support to the union, to prevent a
situation of non-union members enriching themselves at the
expense of union members.
Employee members of another/rival union are not
considered free riders since when the union [agent]
bids to be the bargaining agent, it voluntarily
assumed the responsibility of representing all the
employees in the appropriate bargaining unit.
UNFAIR LABOR PRACTICE
1. What is the test to determine whether or not an employer is guilty
ULP?
The test of whether an employer has interfered with and
coerced employees is whether the employer has engaged
in conduct which it may reasonably be said tends to
interfere with the free exercise of employees’ rights to
self-organization and it is not necessary that there be direct
evidence that any employee was in fact intimidated or
coerced by statements of threats of the employer if there is
reasonable interference that anti-union conduct of the
employer does have an adverse effect on self-organization
and collective bargaining. (De Leon vs. NLRC, 358 SCRA
274)
2. Some cases of ULP of EMPLOYERS:
 • From the employer’s refusal to bargain, to their act
of economic inducements resulting in the promotion
of those who withdrew from the union, the use of
armed guards to prevent the organizers to come in
and the dismissal of union officials and members
(Hacienda Fatima vs. National Federation
Sugarcane Workers-Food and General Trade,
G.R. No. 149440)
• Where the workers were dismissed because they
refused to resign from a union and affiliate with a
rival union which was being aided and abetted by
the Company (Development
Corporation vs. CIR, 80 SCRA 434)
• Two union officers were provoked into a pre-
arranged fight by two recently-hired employees,
pursuant to the strategy of the company designed to
prevent an apparently lawful cause for their
dismissal (Visayan Bicycle Co. vs. National Labor
Union, 14 SCRA 5)
3. Some cases of ULP of LABOR ORGANIZATIONS:
• Workers were reluctantly dismissed from
employment upon insistent demand by the union
(Salunga vs. Court of Industrial Relations, 21
SCRA 216)
• Union demanded the dismissal from employment on
the basis of the union security clause of the CBA
and the employer acceded by placing the employee
on forced leave (Manila Mandarin Employee Union
vs. NLRC, 154 SCRA 368)
• The strike was staged in violation of the existing CBA
provisions on NO Strike/No Lockout Clause (Union
of Filipino
Employees vs. Nestle Philippines, 192 SCRA 396)
4. What is BOULWARISM?
It occurs when:
11
a. the employer directly bargains with the
employee disregarding the union.
b. Employer submits its proposals and adopts a
take it or leave it stand. This is not negotiation
because the take it or leave it stand implies threat.
STRIKES, LOCKOUT AND PICKETING
1. “ASSUMPTION ORDER” OF THE SECRETARY, ITS LEGAL
IMPLICATIONS
Under Art. 263(g) of the Labor Code, such assumption shall
have the effect of automatically enjoining the intended or
impending strike or lockout as specified in the assumption
order. If one had already taken place at the time of
assumption, all striking or lockout employees shall
immediately return to work and the employer shall
immediately resume operations and re-admit all workers
under the same terms and conditions prevailing before the
strike or lockout. The Secretary of Labor and Employment
may seek the assistance of law enforcement agencies to
ensure compliance with this provision as well as he may
issue to enforce the same. The mere issuance of an
assumption order by the Secretary of Labor automatically
carries with it a return to work order, even if the directive to
return to work is not expressly stated in the assumption
order. Those who violate the foregoing shall be subject to
disciplinary action or even criminal prosecution.
Under Art. 264 of the Labor Code, no strike or lockout shall be
declared after the assumption of jurisdiction by the Secretary.
Power of Sec. of Labor is plenary and discretionary. (St.
Luke’s Medical Center vs. Torres, 29 June 1993)
2. TESTS IN DETERMINING THE LEGALITY OF A STRIKE
a. Purpose Test (bargaining deadlock and/or
unfair labor practice)
b. Compliance with Procedural and
substantive requirements of law
• notice of strike
 • 30/15-day cooling-off period
• strike vote
• 7 – day strike ban
c. Means employed test - A strike may be legal
at its inception but eventually be declared
illegal if the strike is accompanied by violence
which violence is widespread, pervasive and
adopted as a matter of policy and not merely
violence which is sporadic which normally
occur in a strike area.
The three tests must concur. Non-compliance with
any of the aforementioned requisites renders the strike
illegal.
3. STRIKERS WHO ARE NOT ENTITLED TO REINSTATEMENT
1. Union officers who knowingly participate in an illegal strike;
and
2. Any striker/union member who knowingly participates in the
commission of illegal acts during the strike.
Those union members who joined an illegal strike
but have not committed any illegal act shall be
reinstated but without any backwages.
4. DEFIANCE OF RETURN TO WORK ORDER IN A STRIKE CASE
WHICH IS UNDER ASSUMPTION OF JURISDICTION, ITS
IMPLICATIONS:
In the case of Telefunken Semiconductors Employees
Union FFW v. CA, G.R. No. 143013-14, December 18,
2000, the Supreme Court held that the strike of the Union
cannot be viewed as anything but illegal for having been
staged in open and knowing defiance of the assumption and
return-to-work orders. The necessary consequence thereof are
also detailed by the Supreme Court in its various rulings. In
Marcopper Mining Corp. v. Brillantes (254 SCRA 595), the
High Tribunal stated in no uncertain terms that -
12
“by staging a strike after the assumption of
jurisdiction or certification for arbitration, workers
forfeited their right to be readmitted to work, having
abandoned their employment, and so could be validly
replaced.”
5. What are the grounds for declaration of strike?
1. deadlock in collective bargaining (ECONOMIC); and/or
2. unfair labor practices (POLITICAL)
6. What are considered ILLEGAL STRIKES?
A. SIT-DOWN STRIKE - is characterized by a
temporary work stoppage of workers who thereupon
seize or occupy property of the employer or refuse to
vacate the premises of the employer. ILLEGAL-
amounts to a criminal act because the employees
trespass on the premises of the employer.
B. WILDCAT STRIKE- is a work stoppage that
violates the labor contract and is not authorized by
the union. ILLEGAL- It is not valid because it fails to
comply with certain requirements of the law, to wit:
notice of strike, vote, and report on strike vote.
C. SYMPATHETIC STRIKES- are work
stoppages of workers of one company to make
common cause with other strikers of other
companies, without demands or grievances of their
own against the employer. ILLEGAL - because there
is no labor dispute between the workers who are
joining the strikers and the latter’s employer.
D. SECONDARY STRIKES- are work stoppages
of workers of one company to exert pressure on their
employer so that the latter will in turn bring pressure
upon the employer of another company with whom
another union has a labor dispute. ILLEGAL-
because there is no labor dispute involved.
E. “WELGA NG BAYAN” ILLEGAL because it is a
political strike and therefore there is neither a
bargaining deadlock nor any ULP. It is a political
rally.

7. General Rule: A strike staged by workers, inspired by good faith,
DOES NOT automatically make the same illegal (PNOC
Dockyard and Engineering Corporation vs. NLRC,
291 SCRA 231).
Exception: Good faith is NO LONGER A DEFENSE if no
procedural compliance for valid strike (Grand Boulevard
Hotel vs. Genuine Labor Organizations, G.R. No. 153664)
8. What is “INNOCENT BYSTANDER RULE”?
An innocent bystander”, who seeks to enjoin a labor strike,
must satisfy the court that aside from the grounds specified
in Rule 58 of the Rules of Court, it is entirely different from,
without any connection whatsoever to, either party to the
dispute and, therefore, its interests are totally foreign to the
context thereof (MFS Tire and Rubber, Inc. vs. CA).
TERMINATION OF EMPLOYMENT
1. What are the JUST CAUSES FOR DISMISSAL?
1. Serious MISCONDUCT OR WILLFUL DISOBEDIENCE
by the employee of the lawful orders of his employer
or representative in connection with his work;
• Misconduct- transgression of some established and
definite rule of action, a forbidden act, a dereliction
of duty, willful in character, and implies wrongful
intent and not mere error in judgment. (Dept. of
Labor Manual, Sec. 4353.01)
2. Gross and habitual NEGLECT by the employee of his duties;
3. FRAUD OR WILLFUL BREACH by the employee of the trust
reposed in him by his employer or duly organized representative
• Fraud must be committed against the employer or
his representative and in connection with the
employee’s work. (Dept. of Labor Manual, Sec.
4353.01 [3])
13
4. Commission of a CRIME OR OFFENSE BY THE EMPLOYEE
AGAINST THE PERSON OF HIS EMPLOYER or any immediate
member of his family or his duly authorized representative; and
• Conviction or prosecution is not required.
5. Other causes ANALOGOUS to the foregoing.
• A cause must be due to the voluntary or willful act
or omission of the employee. (Nadura v. Benguet
Consolidated, G.R. No. L-17780)
2. What are the AUTHORIZED CAUSES OF
TERMINATION BY THE EMPLOYER?
1. installation of labor-saving devices (AUTOMATION)
2. REDUNDANCY (superfluity in the performance of a
particular work)
redundancy, for purposes of the Labor Code, exists
where the services of an employee are in excess of
what is reasonably demanded by the actual
requirements of the enterprise. (Wiltshire File Co.
Inc. vs. NLRC)
3. RETRENCHMENT to prevent losses (there is excess
of employees and employer wants to prevent financial
losses). Requirements:
(a) substantial losses which are not merely de minimis in extent;
(b) imminence of such substantial losses;
(c) retrenchment would effectively prevent the expected and
additional losses;
(d) the alleged losses and expected losses must be proven by
sufficient and convincing evidence.
4. closing or CESSATION OF OPERATION of the
establishment or undertaking UNLESS the closing is
for the purpose of circumventing the provisions of the
Labor Code.
5. DISEASE
a. the disease is incurable within 6 months and the
continued employment of the employee is
prohibited by law or prejudicial to his health as
well as to the health of his coemployees
 b. with a certification from public heath officer that
the disease is incurable within 6 months despite
due medication and treatment.
3. TERMINATION BY EMPLOYEE
WITHOUT JUST CAUSE- by serving a WRITTEN
NOTICE on the employer at least one month in advance.
The employer upon whom no such notice was served
may hold the employee liable for damages.
WITH JUST CAUSE - An employee may put an end
to employment WITHOUT SERVING ANY NOTICE on the
employer for any of the following just causes:
1. SERIOUS INSULT by the employer or his
representative on the hour and person of the
employee;
2. Inhuman and UNBEARABLE TREATMENT accorded
the employee by the employer or his representative;
3. Commission of a CRIME OR OFFENSE by the
employer or his representative against the person of
the employee or any of the immediate members of his
family; and
4. Other causes ANALOGOUS to any of the foregoing.
4. DISMISSAL, PRESENCE OF JUST/AUTHORIZED CAUSE AND
DUE PROCESS
Four possible situations under AGABON vs. NLRC,
November 17, 2004:
1. If dismissal is for a just/authorized cause and due
process was observed- dismissal is valid and
employer will not suffer any liability.
2. If dismissal is without just/authorized cause but due
process was observed – dismissal is illegal, apply Art
279 regarding reinstatement and backwages.
3. If dismissal is without just/authorized cause and
without due process- dismissal is illegal, apply Art.
279 regarding reinstatement and backwages.
4. Dismissal is for just/authorized cause but due
process was not observed – Dismissal is valid.
However, Sanctions must be imposed on the
14
employer. Such sanctions must be stiffer than that
imposed in Wenphil.
Under the WENPHIL DOCTRINE, if the services of the
employee was terminated due to a just or authorized cause
but the affected employee’s right to due process has been
violated, the dismissal is legal but the employee is entitled to
damages by way of indemnification for the violation of the
right.
SERRANO vs. ISETANN et al. abandoned the Wenphil
doctrine and ruled that if the employee is dismissed under
just or authorized cause but the affected employee’s right to
due process has been violated, his dismissal becomes
ineffectual. Therefore, the employee is entitled to backwages
from the time he was dismissed until the determination of
the justness of the cause of the dismissal.
The case of AGABON vs. NLRC abandoned the Serrano
doctrine and REINSTATED THE WENPHIL DOCTRINE. The
sanctions however must be stiffer than that imposed in
Wenphil.
The Court in the case of JAKA FOOD PROCESSING
CORP. vs. PACOT et al., March 28, 2005, said that “If the
dismissal is based on a just cause under Article 282 but the
employer failed to comply with the notice requirement, the
sanction to be imposed upon him should be tempered
because the dismissal process was, in effect, initiated by an
act imputable to the employee; and
If the dismissal is based on an authorized cause under
Article 283 but the employer failed to comply with the notice
requirement, the sanction should be stiffer because the
dismissal process was initiated by the employer’s exercise of
his management prerogative.”
5. What is the TOTALITY OF INFRACTIONS DOCTRINE?
Where the employee has been found to have repeatedly
incurred several suspensions or warnings on account of
violations of company rules and regulations, the law
warrants their dismissal as akin to “HABITUAL
DELINQUENCY” (Villeno vs. NLRC, 251 SCRA
494) 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
6. When is the STRAINED RELATIONSHIP RULE APPLICABLE? employment;
Strained relationship may be invoked ONLY AGAINST 4. Claims for actual, moral, exemplary and other forms of
EMPLOYEES WHOSE POSITIONS DEMAND TRUST AND DAMAGES arising from employer-employee relations;
CONFIDENCE or whose DIFFERENCES WITH THEIR 5. CASES ARISING FROM ANY VIOLATION OF ART 264 of
EMPLOYER this Code, including questions involving the legality of
ARE OF strikes and lockouts;
6. Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, ALL OTHER
SUCH NATURE OR DEGREE AS TO PRECLUDE CLAIMS ARISING FROM EMPLOYER-
REINSTATEMENT (Dimabayao vs. NLRC, 303 SCRA 655). EMPLOYEE
It does not apply to ULP cases where the employee was RELATIONS, including those of persons in
dismissed for union activities. domestic or household service, involving an
amount exceeding P5, 000.00 regardless of
7. RETIREMENT (R.A 7641, approved on December 9, 1992 – it has a whether accompanies with a claim for
retroactive effect being a curative social legislation) reinstatement; and
a) Compulsory – upon reaching 65 years of age; 7. MONETARY CLAIMS OF OVERSEAS
with at least 5 years of service CONTRACT
b) Optional – upon reaching 60 years of age; WORKERS under the Migrant Workers Act of 1995.
with at least 5 8. Claims of employees against GOCCs WITHOUT ORIGINAL
years of service; at the option of the employee CHARTER and has been incorporated under the
Corporation Code.
Components of Retirement Pay: (NOTE: Although the provision speaks of EXCLUSIVE
a) 15 days based on the employee’s latest salary AND ORIGINAL JURISDICTION OF labor arbiters, the
b) 1/12 of the 13 month pay
th cases enumerated may instead be submitted to a
c) cash equivalent of the 5 days service incentive leave voluntary arbitrator by agreement of the parties
Computation: 22.5 days x number of years of service under Art. 262. The law prefers voluntary over
{22.5 days: 15 days plus 2.5 days compulsory arbitration.)
representing 1/12 of the 13th month pay
plus 5 days of service incentive leave} 2. NLRC DIVISION Original and exclusive:
1. Cases certified to it for compulsory arbitration by the
JURISDICTIONS, REMEDIES, ACTIONS AND PROCEEDINGS Secretary of Labor under Art. 263 – CERTIFIED CASES;
2. INJUNCTION CASES under Art. 218 and 264; AND
1. LABOR ARBITERS 3. CONTEMPT CASES
Original and exclusive jurisdiction to hear and decide, within 30
calendar days:
1. ULP cases;
2. TERMINATION disputes;

15
 Exclusive appellate:
1. Cases DECIDED BY LABOR ARBITERS under
Art 217b of the Labor Code and Sec 10 RA 8012
(Migrant Workers Act); and
2. Cases DECIDED BY THE REGIONAL OFFICES
OF DOLE IN THE EXERCISE OF ITS
ADJUDICATORY FUNCTION under Art 129 of
the Labor Code over monetary claims of workers
amounting to not more that P5,000.00
3. BUREAU OF LABOR RELATIONS
Original and exclusive
1. INTRA- union conflicts
2. INTER- union conflicts
3. all DISPUTES, GRIEVANCES OR PROBLEMS ARISING
FROM OR AFFECTING LABOR MANAGEMENT
RELATIONS IN ALL WORKPLACES WHETHER
AGRICULTURAL OR NON-AGRICULTURAL.
(Note: The parties may however, by agreement, settle
their differences by submitting their case to a voluntary
arbitrator rather than taking the case to the BLR.)
4. NATIONAL CONCILIATION AND MEDIATION BOARD
(Absorbed the conciliation, mediation and voluntary
arbitration functions of the BLR.) Functions:
1. Formulate policies, etc. pertaining to effective mediation and
conciliation of labor disputes.
2. Perform preventive mediation and conciliation functions
3. Coordinate and maintain linkages with other sectors or
institutions concerned with matters relative to the
prevention and settlement of labor disputes.
4. Formulate policies, etc, pertaining to the promotion of
cooperative and non-adversarial schemes, grievance
handling, voluntary arbitration and other voluntary modes of
dispute settlement.
5. Administer voluntary arbitration program
6. Provide counseling and preventive mediation assistance
7. Monitor and exercise technical supervision over Board
programs implemented in the regional offices.
16
8. Perform such other functions as may be provided by law or
assigned by the Secretary of Labor.
5. GRIEVANCE MACHINERY
1. Interpretation and implementation of CBA
2. Interpretation and enforcement of company personnel
policies
6. VOLUNTARY ARBITRATOR
1. Unresolved grievances from the Grievance machinery:
a. Interpretation and implementation of CBA
b. Interpretation and enforcement of company
personnel policies
2. Wage distortion issues arising from the application of any
wage orders in organized establishments
3. Unresolved grievances arising from the interpretation and
implementation of productivity incentive programs. 4. Other
labor disputes by agreement of the parties
7. MED-ARBITER
1. Hear, conciliate, and decide representation cases
2. Assist in the disposition of intra or inter-union disputes.
8. VOLUNTARY ARBITRATORS, APPEAL OF DECISION
Appeals from decisions of voluntary arbitrators may
be filed with the Court of Appeals, under Rule 43 of the
Revised Rules of Court.
9. How is an appeal perfected from the Labor Arbiter to the
appropriate NLRC Division?
An appeal to the NLRC is perfected once an appellant FILES
THE MEMORANDUM OF APPEAL, PAYS THE REQUIRED
APPEAL FEE and when a monetary award is involved, the latter POSTS
AN APPEAL BOND or SUBMITS A SURETY BOND issued by a reputable
bonding company (Soliman Security Services vs.
CA, 384 SCRA 514).
 Practical training on the job Hiring of persons as trainees in
LABOR STANDARDS supplemented by related semi-skilled and other industrial
theoretical instruction occupations which are
1. PREMATURE TERMINATION OF CONTRACT UNDER R.A. 8042 nonapprenticeable and which may
be learned through practical
Illegally dismissed employees are entitled to full training on the job in a relatively
reimbursement of his placement fee with interest at 12% per
short period of time.
annum PLUS salary for whole unexpired portion of the OFWs
employment contract (Gallant Maritime)

ER’s COMMITMENT TO HIRE

2. SOLIDARY LIABILITY OF PRINCIPAL/EMPLOYER AND AGENCY No commitment to hire With commitment to employ the
learner as regular employee if he
Under Sec. 10 of the MWA of 1995, the liability of the
desires upon completion of
principal/employer and the recruitment/placement agency
for any and all claims under this section shall be joint and learnership
several.

3. APPRENTICESHIP, LEARNERSHIP, HANDICAPPED

WORKERS EFFECT OF PRETERMINATION

Apprenticeship means practical training on the job

Worker is not considered an Learner is considered regular
supplemented by related theoretical instruction.
employee employee after 2 months of
Learnership refers to hiring of persons as trainees in semi-
training and dismissal is
skilled and other industrial occupations which are non-
apprenticeable and which may be learned through practical without fault of learner
training on the job in a relatively short period of time which
shall not exceed 3 months. Handicapped workers are those FOCUS OF TRAINING
whose earning capacity is impaired by age or physical or Highly skilled or technical Semi-skilled/industrial
mental deficiency or injury, disease or illness.
industries & in industrial occupation (non-
occupation apprenticeable)
APPRENTICESHIP LEARNERSHIP
DURATION APPROVAL
Not less than 3 months practical Practical training on the job not to Requires DOLE approval
training on the job but not more exceed 3 months. Not required for validity
than 6months
EXHAUSTION OF ADM. REMEDIES IN CASE OF BREACH OF
CONCEPT CONTRACT

Precondition for filing action Not required

17
 d. Meal period of less than twenty (20) minutes, since it
becomes only a rest period and is thus considered as work
4. RULE ON HOLIDAYS time
e. The reasonable time to withdraw their wages from the bank
SINGLE facility if done during working hours, if payment of wages is
HOLIDAY RULE through banks, ATM or by check.
provided that
the employee: 6. FACILITIES VS. SUPPLEMENTS
1. worked, FACILITIES SUPPLEMENTS
2. was on leave with pay, or Items of expense necessary for Constitute extra remuneration or
3. was on authorized absence on the day prior the laborer’s and his family’s special privileges or benefits
to the regular holiday. existence and subsistence given to or received by the
laborers over and above their
SUCCESSIVE HOLIDAY RULE ordinary earnings wages

the employee must be present the day before the

Part of the wage Independent of the wage
scheduled regular holiday to be entitled to
compensation to both; otherwise, he must work on Deductible from the wage Not wage deductible
the first holiday to be entitled to holiday pay on the
second regular holiday. (Sec.10, Rule IV,
Book III, Implementing Rules) LEGAL REQUIREMENTS BEFORE FACILITIES CAN BE DEDUCTED
FROM WAGES
DOUBLE HOLIDAY RULE
1. Proof must be shown that such facilities are customarily
If unworked: furnished by the trade;
200% of the basic wage. 2. The provision of deductible facilities must be voluntarily
(NB: to give employee only 100% would reduce accepted in writing by the employee; and
the number of holidays under DO No. 3.) If worked: 3. The facilities must be charged at fair and reasonable value.
300% of the basic wage.

5. HOURS WORKED, WHAT IT INCLUDES

a. All time during which an employee is required to be on duty 7. What is a WAGE ORDER?
or to be at a prescribed workplace; An order issued by the Regional Tripartite Wages &
b. All time during which an employee is suffered or permitted Productivity Board whenever the conditions in the region so
to work; warrant after investigating and studying all pertinent facts
and based on the standards and criteria prescribed by the
c. Rest periods of short duration during working hours; LC, the Regional Board proceeds to determine whether to
issue the same or not. It shall take effect after 15 days from

18
the its complete publication in at least one newspaper of
general circulation in the region.
A wage Order issued by the Board may not be
disturbed for a period of 12 months from its effectivity and
no petition for wage increase shall be entertained during said
period. EXCEPTION: When Congress itself issues a law
increasing wages.
8. What is WAGE DISTORTION?
The Court summarizes the principles relating to wage distortion,
namely:
(a) The concept of wage distortion
assumes an existing grouping or classification of
employees which establishes distinctions among
such employees on some relevant or legitimate
basis. This classification is reflected in a differing
wage rate for each of the existing classes of
employees.
(b) Wage distortions have often been the
result of governmentdecreed increases in
minimum wages. There are, however, other
causes of wage distortions, like the merger of two
companies (with differing classifications of
employees and different wage rates) where the
surviving company absorbs all the employees of
the dissolved corporation.
(c) Should a wage distortion exist, there is
no legal requirement that, in the rectification of
that distortion by readjustment of the wage rates
of the differing classes of employees, the gap
which had previously or historically existed be
restored in precisely the same amount. In other
words, correction of a wage distortion may be
done by reestablishing a substantial or significant
gap (as distinguished from the historical gap)
between the wage rates of the differing classes of
employees.
The reestablishment of a significant difference in wage rates
may be the result of resort to grievance procedures or
collective negotiations (National Federation of Labor vs.
NLRC).
19
9. What is the ENFORCEMENT POWER OF THE SECRETARY OF
LABOR?
Power of the Sec. of Labor to compel employer to
comply with labor standards upon finding of violations
discovered in the course of the exercise of the visitorial
power. Among the powers are the power to: Issue
Compliance Orders, issue Writs of Execution for the
enforcement of orders, order Work Stoppage/Suspension of
Operations, and conduct hearings within 24 hours.
10. STIPULATION AGAINST MARRIAGE (ART. 136)
It shall be unlawful for an employer:
1. to require as a condition for employment or continuation of
employment that a woman employee shall not get married,
2. to stipulate expressly or tacitly that upon getting married a
woman employee shall be deemed resigned or separated,
3. to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage.
Article 136 is not intended to apply only to women employed
in ordinary occupations, or it should have categorically
expressed so. The sweeping intendment of the law, be it on
special or ordinary occupations, is reflected in the whole text
and supported by Article 135 that speaks of
nondiscrimination on the employment of women. (Claudine
de Castro Zialcita, et al. vs. PAL).
11. CLASSIFICATION OF CERTAIN WOMEN WORKERS Under Art.
138, “Any woman who is permitted or suffered to work, with or
without compensation in any nightclub, cocktail lounge, massage
clinic, bar or other similar establishment, under the effective
control and supervision of the employer for a substantial period of
time as determined by the Secretary of Labor shall be considered
as an employee of such establishment for purposes of labor
and social legislation.”
12. CBA INCREASE VIS-À-VIS WAGE ORDER-MANDATED
INCREASE
Having entered into an agreement with its employees,
an employer may not be allowed to renege on its obligation
under a collective bargaining agreement should, at the same
time, the law grant the employees the same or better terms
and conditions of employment. Employee benefits derived
from law are exclusive of benefits arrived at through
negotiation and agreement unless otherwise provided by the
agreement itself or by law. (Meycauayan College vs. Drilon,
G.R. No. 81144, May 7, 1990).
13. Rules on 13th MONTH PAY
 Additional income based on wage required by P.D.
851 which is equivalent to 1/12 of the total basic
salary earned by an employee within a calendar year.
 May be given anytime but not later than Dec. 24.
 Coverage: All rank-and-file employees regardless of
their designation or employment status and
irrespective of the method by which their wages are
paid, are entitled to this benefit, provided, that they
have worked for at least one (1) month during the
calendar year.
 It must always be in the form of legal tender. Free
rice, electricity cash and stock dividends, COLA are
NOT proper substitutes for the 13th month pay.
 Difference of opinion on how to compute the 13th
month pay does not justify a strike.
 Note: 13th Month Pay is tax exempt.
14. Is there a need for employment permit as a condition for
employment of aliens?
Generally, no. Article 40 of the LC which requires
employment permit refers to NON-RESIDENT ALIENS. The
employment permit is required for entry into the country for
employment purposes and is issued after a non-
determination of the non-availability of a person in the
Philippines who is competent, able and willing at the time of
application to perform the services for which the alien is
desired. A resident alien does not fall within the ambit of the
provision.
15. ILLEGAL RECRUITMENT
20
“Illegal recruitment shall mean any act of
canvassing, enlisting, contracting, transporting, utilizing,
hiring or procuring workers and includes referring, contract
services, promising or advertising for employment abroad,
whether for profit or not, when undertaken by a non-license
or non-holder of authority contemplated under Article 13(f) of
Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines: Provided, that any such
nonlicensee or non-holder who, in any manner, offers or
promises for a fee employment abroad to two or more
persons shall be deemed so engaged. Illegal recruitment is
deemed committed by a syndicate if carried out by a group
of three (3) or 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. (People vs. Dominga Corrales Fortuna)
Pre-week in Labor Law and Social Legislation - JOBL NOTES
NOTE: Maximum penalty shall be imposed if the person illegally
recruited is less than 18 years of age or committed by a non-
licensee or non-holder of authority.
SPECIAL LAWS
1. SSS, COVERAGE:
Compulsory:
1. Compulsory upon all employees not over 60 years of age
and their employers
2. In case of domestic helpers, their monthly income should
not be less than one thousand pesos
3. Compulsory upon such self- employed persons as may be
determined by the Commission including but not limited
to the following (Sec 9-A): All self employed professionals
a. Partners and single proprietors
 b. Actors and actresses directors, scriptwriters and news
correspondents who do not fall within the definition of the
term employee in Section 8 (d) of this Act
c. Professional athletes, coaches, trainers, and jockeys
d. Individual farmers and fishermen
Voluntary:
1. Spouses who devote full time to managing the
household and family affairs, unless they are also
engaged in other vocation or employment which is
subject to mandatory coverage, may be covered by
the SSS on a voluntary basis.
2. Filipinos recruited by foreign based employers for
employment abroad may be covered by the SSS on a
voluntary basis
3. Employees separated from employment may continue
to pay contributions to maintain his right to full
benefits (Sec. 11) 4. Self-employed with no income
(11-A)
By Agreement:
Any foreign government, international organization, or
their wholly-owned instrumentality employing workers in the
Philippines, may enter into an agreement with the Philippine
government for the inclusion of such employees in the SSS
except those already covered by their respective civil service
retirement systems (Sec.8 (j (4), RA 8282).
EFFECTIVE DATE OF COVERAGE UNDER THE SSS
 Employer: It shall take effect on the first day of his
operation
 Employee: On the day of his employment
 Self-employed: It shall take effect upon his registration with
SSS
2. GSIS, COMPULSORY MEMBERSHIP
Compulsory for all employees (as defined in Section 2
(d) of GSIS Law) receiving compensation who have not
21
reached the compulsory retirement age, irrespective of
employment status, EXCEPT MEMBERS OF THE ARMED
FORCES AND THE PNP, subject to the condition that they
must settle first their financial obligations with the GSIS and
contractuals who have no employer and employee
relationship with the agencies they serve.
EXCEPT FOR THE MEMBERS OF THE JUDICIARY
AND CONSTITUTIONAL COMMISSIONS WHO SHALL HAVE
LIFE INSURANCE ONLY, all members of the GSIS shall have
life insurance, retirement and all other social security
protection such as disability, survivorship, separation and
unemployment benefits (Sec.
3, RA 8291)
CHILD LABOR
Child laborers are persons aged below 15, or from 15
to below 18 years, performing work or service that is
hazardous or deleterious in nature, or exploitative, or
unsupervised by the child’s parent or guardian, or that
interferes with normal development, or deprives that child’s
right to health and education.
However, not all children who work are engaged in
child labor. Work performed by any person below 15 years of
age is not considered child labor if it falls under allowable
situations under Republic Act No. 7658. Light work that is
occasional, legal and respects the child’s right to health and
education is not child labor.
RUN-OFF ELECTION
A. Double majority rule: Before a labor union can
be declared a winner, a majority of the eligible
voters must have cast their votes (include
spoiled ballots) and a majority of the valid votes
cast is for such union (exclude spoiled ballots
but include challenged votes).
B. Run-off election is proper when:
1. there is a valid election because a majority of
the eligible voters voted (1st majority)
 2. the said election presented at least 3 choices
3. not one of the choices obtained the majority
of the valid votes cast (2nd majority)
4. total votes cast for the contending unions is
at least 50% of the votes cast
5. the unions obtaining the two highest votes will
participate in the run-off, take note that “NO
UNION” shall not be a choice in the run-off
election
6. the union obtaining the majority of the total
votes cast shall be declared winner in the run-off
election
Note on CHILD LABOR:
Republic Act 9231, Sec. 3 (July 28, 2003), allows
a child below 15 years of age to work for not more than 20
hours a week, provided: (a) that the work shall not be more
than 4 hours at any given day; (b) he does not work between
8PM and 6AM of the following day; and (c) the work is not
hazardous or deleterious to his health or morals. A child 15
years but below 18 years shall not work for more than 8
hours a day and in no case beyond 40 hours a week and he
is not allowed to work from 10PM to 6AM.
SOLO PARENTS ACT
BATTERED WOMAN’S LEAVE
OTHER SPECIAL LAWS
BONUS: GUIDE TO CORRECT ANSWERS FOR THE 2013 BAR
CONSTITUTIONAL MANDATE.
“The state shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for
all. It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in
22
accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making
processes affecting their rights and benefits as may be
provided by law.
“The State shall promote the principle of shared
responsibility between workers and employers and the
preferential use of voluntary modes in setting disputes,
including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
“The State shall regulate the relations between workers
and employers, recognizing the right of labor to its just share
in the fruits of production and the right of enterprises to
reasonable returns on investments, and to expansion and
growth.” (Section
3 (Labor), Article XIII [Social Justice and Human Rights] of the
1987).
Declaration of basic principles.
The State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of
sex, race or creed and regulate the relations between workers
and employers. The State shall assure the rights of workers
to selforganization, collective bargaining, security of tenure,
and just and humane conditions of work.
1. Labor contracts are not ordinary contracts as the
relation between capital and labor is impressed with
public interest.
2. In case of doubt, labor laws and rules shall be
interpreted in favor of labor.
3. Labor Code applies to all workers, whether
agricultural or non-agricultural.
 4. Applicability of Labor Code to government-owned
or controlled corporations:
- When created with original or special charter – Civil
Service laws, rules and regulations;
- When created under the Corporation Code applies.
RECRUITMENT AND PLACEMENT OF WORKERS
1. Relevant law – Migrant Workers and Overseas
Filipinos
Act of 1995 (R. A. No. 8042 as recently amended by
Rep. Act No. 10022 )
2. Free placement services by public employment offices
for domestic/overseas work.
Entities authorized to engage in recruitment and placement
a. public employment offices;
b. Philippine Overseas Employment Administration
(POEA);
c. Private recruitment entities;
d. Private employment agencies;
e. Shipping or manning agents or representatives;
f. Such other persons or entities as may be authorized by the
Secretary of Labor and Employment; and
g. Construction contractors.
Money claims of OFW’s – jurisdiction and appeal
1. Jurisdiction over money claims of OFW’s is vested
with Labor Arbiters of the NLRC and not with
POEA (Sec. 10 , R. A. No. 8042, as amended by
Rep. Act No. 10022 ).
2. Decisions of Labor Arbiters on money claims of
OFW’s are appealable to NLRC.
Liability of local recruitment agency and foreign principal
1. Local Agency is solidarily liable with foreign principal.
2. Severance of relations between local agent and foreign
principal does not affect liability of local recruiter.
23
Claims for Death and other Benefits
1. Labor Arbiters have jurisdiction over claims for
death, disability and other benefits arising from
employment.
2. Basis of compensation for death generally is
whichever is greater between Philippine law or
foreign law.
3. Work-connection is required.
Disciplinary Action Cases [POEA retains jurisdiction over
disciplinary action cases]
Direct-hiring
1. Employers, as a general rule, cannot directly
hire workers for overseas employment, except
through authorized entities (see enumeration
above).
2. Rationale for the ban is to ensure full regulation
of employment in order to avoid exploitation.
3. Non-resident foreign corporation directly hiring
Filipino workers is doing business in the
Philippines and may be sued in the Philippines.
Illegal recruitment –
1. Illegal recruitment under Article 38 applies to both local
and overseas employment.
2. Illegal recruitment- may be committed by any person
whether licensees or non-licensees or holders or
nonholders of authority.
3. Elements of illegal recruitment:
a. First element: recruitment and placement
activities.
Any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers and
includes referring, contract services, promising or
advertising for employment abroad, whether from profit or
not, when undertaken by a nonlicensee or non-holder of
authority: Provided, That any such licensee or non-holder
who, in any manner, offers or promises for a fee employment 1. Non-resident aliens should secure Alien Employment
abroad to two or more persons shall be deemed as engaged Registration Certificate (AERC).
in such act. 2. There should be understudies.
3. Alien employee should not transfer to another job or charge
b. Second element: Non-licensee or non-holder of his employer.
authority – means any person, corporation or
entity which has not been issued a valid
license or authority to engage in recruitment TRAINING AND EMPLOYMENT OF SPECIAL WORKERS:
and placement by the Secretary of Labor and
Employment, or whose license or authority APPRENTICES
has been suspended, revoked or canceled by
1. Apprenticeship program to be implemented and
the POEA or the Secretary of Labor and
administered by TESDA.
Employment.
2. “Apprenticeship” means any training on the job
supplemented by related theoretical instruction involving
Note: apprenticeable occupations and trades as may be approved
i. Mere impression that recruiter is capable of providing by the Secretary of Labor and Employment. An “apprentice”
work abroad is sufficient. is a worker who is covered by a written apprenticeship
i. “Referral” of recruits also constitutes agreement with an employer.
recruitment activity. 3. Qualifications of apprentices:
ii. Absence of receipt to prove payment is not a. be at least fifteen (15) years of age, provided
essential to prove recruitment. iii. Only one those who are at least fifteen (15) years of age
(1) person recruited is sufficient to constitute but less than eighteen may be eligible for
recruitment. apprenticeship only in non-hazardous
iv. Non-prosecution of another suspect is not material. occupation;
b. be physically fit for the occupation in which
4. Illegal recruitment, when considered economic he desires to be trained;
sabotage – when the commission thereof is c. possess vocational aptitude and capacity for
attended by the qualifying circumstances as the particular occupation as established
follows: through appropriate tests; and
d. possess the ability to comprehend and follow
a. By a syndicate – if carried out by a group of 3 oral and written instructions.
or more persons conspiring and confederating 4. Wage rate of apprentices – 75% of the statutory
with one another; minimum wage.
b. In large scale – if committed against 3 or more 5. Apprentices become regular employees if program is
persons individually or as a group. not approved by DOLE.
5. Prescriptive period of illegal recruitment cases – 6. Ratio of theoretical instructions and on-the-job
Under Republic Act No. 8042 – Five (5) years training – 100 hours of theoretical instructions for
except illegal recruitment involving economic every 1,000 hours of practical training on-the-job.
sabotage which prescribes in 20 years.
LEARNERS
Employment of non-resident aliens
24
 1. “Learners” is a person hired as a trainee in d. Domestic servants and persons in the personnel
industrial occupations which are non- service of another;
apprenticeable and which may be learned e. Workers paid by results;
through practical training on the job for a period f. Non-agricultural field employer;
not exceeding three (3) months, whether or not g. Members of the family of the employer;
such practical training is supplemented by
theoretical instructions. 3. More specially, the above excluded groups of
2. Pre-requisites before learners may be validly employees are not covered by the following
employed: provisions of Title I, Book III of the Labor Code:
a. when no experienced workers are available;
b. the employment of learners is necessary to prevent Article 83 - Normal hours of work;
curtailment of employment opportunities; and Article 84 - Hours worked;

c. the employment does not create unfair competition in Article 85 - Meal periods;
terms of labor costs or impair or lower working Article 86 - Night shift differential;
standards. Article 87 - Overtime work;
3. Wage rate of learners –75% of the statutory minimum wage.
Article 88 - Undertime not offset by overtime;
HANDICAPPED WORKERS Article 89 - Emergency overtime work;
1. Handicapped workers are those whose earning Article 90 - Computation of additional compensation;
capacity is impaired: Article 91 - Right to weekly rest period;
a. by age; or
b. physical deficiency; or Article 92 - When employer may require work on a rest day;
c. mental deficiency; or Article 93 - Compensation for the rest day, Sunday or
d. injury holiday work;
2. If disability is not related to the work for which he Article 94 - Right to holiday pay;
was hired, he should not be so considered as Article 95 - Right to service incentive leave; and Article
handicapped worker. He may have a disability 96 - Service charges.
but since the same is not related to his work, he
cannot be considered a handicapped worker 4. Existence of employer-employee relations is
insofar as that particular work is concerned. necessary.
3. Wage rate – 75% of the statutory minimum wage.
a. Employment relationship; contractual and
voluntary in nature.
CONDITIONS OF EMPLOYMENT
1. Employees covered – applicable to all employees in all
b. Existence of employment relationship is both a
question of fact and law.
establishments whether operated for profit or not.
5. Test of employment relationship (there is no
2. Employees not covered:
uniform test) but the four (4) elements of the
a. Government employees;
employer-employee relationship are as follows:
b. Managerial employees;
(a) Selection and engagement of employee;
c. Other officers or members of a managerial staff;
(b) Payment of wages;

25
 (c) Power of dismissal; and
(d) Power of control (the most important test).
6. Quantum of evidence required to prove
employment relationship – mere substantial
evidence (e. g. I. D. card, Cash Vouchers for
salaries, inclusion in payroll, reporting to SSS).
Normal hours of work
1. “Normal” hours of work of employees SHALL NOT
EXCEED eight (8) hours per day.
2. The phrase SHALL NOT EXCEED is the basis for
parttime work in this country.
3. “Work day” means consecutive-hour period which
commences from the time the employee regularly starts
to work. It does not necessarily mean the
ordinary calendar day from 12:00 midnight
unless the employee starts to work at this
unusual hour.
4. “Work week” is a week consisting of 168 consecutive
hours or 7 consecutive 24-hour work days beginning at
the same hour and on the same calendar day each
calendar week.
5. Reduction of eight-hour working day – not prohibited
by law provided there is no reduction in pay of
workers.
6. Shortening of work week – allowed provided employees
voluntarily agree thereto; there is no diminution in pay;
and only on temporary duration.
7. Hours of work of part-time workers – payment of wage
should be in proportion only to the hours worked.
8. Hours of work of hospital and clinic personnel – The
Supreme Court has voided Policy Instructions No. 54
in San Juan de Dios Hospital Employees Association vs.
NLRC (G. R> No. 12638683, Nov. 28, 1997).
Consequently, the rule that hospital employees who
worked for only 40 hours/5 days in any given
workweek should be compensated for full weekly wage
for 7 days is no longer applicable.
Home work
1. The following are the compensable hours worked:
26
a. All time during which an employee is required
to be on duty or to be at the employer’s
premises or to be at a prescribed workplace;
and
b. All time during which an employee is suffered
or permitted to work.
2. Coffee breaks and rest period of short duration –
considered compensable hours worked.
3. Waiting time – considered compensable if waiting
is an integral part of the employer’s work or he is
required or engaged by the employer to wait.
4. Sleeping while on duty is compensable if the
nature of the employee’s work allows sleeping
without interrupting or prejudicing work or when
there is an agreement between the employee and
his employer to that effect. For example, a truck
helper may sleep after performing his task and
while his truck is travelling on its way to its
assignment. But the same may not be done by
the driver.
5. Working while on call – compensable if employee
is required to remain on call in the employer’s
premises or so close thereto that he cannot use
the time effectively and gainfully for his own
purpose.
6. Travel time:
a. Travel from home to work – not compensable working time.
b. Travel that is all in the day’s work – compensable hours worked.
c. Travel away from home – compensable hours worked.
7. Attendance in lectures, meetings, and training periods
sanctioned by employer-considered hours worked.
8. Power interruptions or brown-outs, basic rules:
- Brown-outs of short duration not exceeding
twenty (20) minutes – compensable hours
worked.
- Brown-outs running for more than twenty (20)
minutes may not be treated as hours worked
provided any of the following conditions are
present:
 a. The employees can leave their workplace
or go elsewhere whether within or without
the work premises; or
b. The employees can use the time effectively
for their own interest.
9. Attendance in CBA negotiations or grievance meeting –
compensable hours worked.
10. Attendance in hearings in cases filed by employee – not
compensable hours worked.
11. Participation in strikes – not compensable working time.
Meal period
1. Every employee is entitled to not less than one (1)
hour (or 60 minutes) time-off for regular meals.
Being timeoff, it is not compensable hours worked
and employee is free to do anything he wants,
except to work. If he required to work while
eating, he should be compensated therefor.
2. If meal time is shortened to not less than twenty
(20) minutes – compensable hours worked. If
shortened to less than 20 minutes, it is
considered coffee break or rest period of short
duration and, therefore, compensable.
Night shift differential
1. Night shift differential is equivalent to 10% of
employee’s regular wage for each hour of work
performed between 10:00 p.m. and a.m. of the
following day.
2. Night shift differential and overtime pay,
distinguished. When the work of an employee falls
at nighttime, the receipt of overtime pay shall not
preclude the right to receive night differential pay.
The reason is, the payment of the night
differential pay is for the work done during the
night; while the payment of the overtime pay is
for work in excess of the regular eight (8) working
hours.
3. Computation of Night Shift Differential Pay.
a. Where night shift (10 p.m. to 6 a.m.) work is regular work.
27
1. On an ordinary day: Plus 10% of the basic
hourly rate or a total of 110% of the basic
hourly rate.
2. On a rest day, special day or regular holiday:
Plus 10% of the regular hourly rate on a rest
day, special day or regular holiday or a total of
110% of the regular hourly rate.
b. Where night shift (10 p.m. to 6a.m.) work is overtime work
1. On an ordinary day: Plus 10% of the overtime
hourly rate on an ordinary day or a total of
110% of the overtime hourly rate on an
ordinary day.
2. On a rest day or special day or regular
holiday: Plus 10% of the overtime hourly rate
on a rest day or special day or regular
holiday.
b. For overtime work in the night shift. Since overtime work is
not usually eight (8) hours, the compensation for
overtime night shift work is also computed on the basis
of hourly rate.
1. On an ordinary day. Plus 10% of 125% of
basic hourly rate or a total of 110% of 125%
of basic hourly rate.
2. On a rest day or special day or regular holiday.
Plus 10% of 130% of regular hourly rate on
said days or a total of 110% of 130% of the
applicable regular hourly rate.
Overtime work
1. Work rendered after normal eight (8) hours of
work is called overtime work.
2. In computing overtime work, “regular wage” or
basic salary” means “cash” wage only without
deduction for facilities provided by the employer.
3. “Premium pay” means the additional
compensation required by law for work performed
within 8 hours on non-working days, such as rest
days and special days.
4. “Overtime pay” means the additional
compensation for work performed beyond 8
 hours. Every employee entitled to premium pay is
also entitled to the benefit of overtime pay.
5. Illustrations on how overtime is computed:
a. For ovetime work performed on an ordianry
day, the overtime pay is plus 25% of the basic
hourly work.
b. For overtime work performed on a rest day or
on a special day, the overtime pay is plus 30%
of the basic hourly rate which includes 30%
additional compensation as provided in Article
93 [a] of the Labor Code.
c. For overtime work performed on a rest day
which falls on a special day, the overtime pay
is plus 30% of the basic hourly rate which
includes 50% additional compensation as
provided in Article 93 [c] of the Labor Code.
d. For overtime work performed on a regular
holiday, the overtime pay is plus 30% of the
basic hourly rate which includes 100%
additional compensation as provided in
compensation.
e. For overtime work performed on a rest day
which falls on a regular holiday, the overtime
pay is plus 30% of the basic hourly rate which
includes 160% additional compensation.
Undertime not offset by overtime
2. Undertime work on any particular day shall not
be offset by overtime on any other day.
3. Permission given to the employee to go on leave
on some other day of the week shall not exempt
the employer from paying the additional
compensation required by law such as overtime
pay or night shift differential pay.
Emergency overtime work
1. The general rule remains that no employee may be
compelled to render overtime work against his will.
2. Exceptions when employee may be compelled to render
overtime work:
28
a. When the country is at war or when any other
national or local emergency has been declared
by the
National Assembly or the Chief Executive;
b. When overtime work is necessary to prevent
loss of life or property or in case of imminent
danger to public safety due to actual or
impending emergency in the locality caused
by serious accident, fire, floods, typhoons,
earthquake, epidemic or other disasters or
calamities;
c. When there is urgent work to be performed on
machines, installations or equipment, or in
order to avoid serious loss or damage to the
employer or some other causes of similar
nature;
d. When the work is necessary to prevent loss or
damage to perishable goods.
e. When the completion or continuation of work
started before the 8th hour is necessary to
prevent serious obstruction or prejudice to the
business or operations of the employer; and
f. When overtime is necessary to avail of
favorable weather or environmental conditions
where or quality of work is dependent
thereon.
4. When employee refuses to render emergency
overtime work under any of the foregoing
conditions, he may be dismissed on the ground of
insubordination or willful disobedience of the
lawful order of the employer.
WEEKLY REST PERIODS
1. Every employer shall give his employees a rest period
of no less than 24 consecutive hours after every 6
consecutive normal work days.
2. If business is open on Sundays/holidays, rest day
may be scheduled on another day.
3. Preference of employee as to his rest day should be
respected if based on religious grounds.
 4. Waiver of compensation for work on rest days and
holidays is not valid.
When employer may require work on a rest day.
a. In case of actual or impending
emergencies cause by serious accident,
fire, flood, typhoon, earthquake, epidemic
or other disaster or calamity to prevent
loss of life and property, or in case of force
majeure or imminent danger to public
safety;
b. In case of urgent work to be performed on
machineries, equipment, or installations,
to avoid serious loss which the employer
would otherwise suffer;
c. In the event of abnormal pressure of work
due to special circumstances, where the
employer cannot ordinarily be expected to
resort to other measures;
d. To prevent serious loss of perishable
goods;
e. Where the nature of the work is such that
the employees have to work continuously
for seven (7) days in a week or more, as in
the case of the crew members of a vessel
complete a voyage and in other similar
cases; and
f. When the work is necessary to avail of
favorable weather or environmental
conditions where performance or equality
of work is dependent thereon.
Compensations for rest day, Sunday or holiday work
a. Premium pay for work on scheduled rest day. A
covered employee who is made or permitted to
work on his scheduled rest day shall be paid with
an additional compensation of at least thirty
percent (30%) of his regular wage.
b. Premium pay for work on Sunday when it is
employee’s rest day.
29
A covered employee shall be entitled to such additional
compensation of thirty percent (30%) of his regular wage for
work performed on a Sunday only when it is his established
rest day.
c. Premium pay for work performed on Sundays and
holidays when employee has no regular workdays
and no scheduled regular rest day.
Where the nature of the work of the employee is such that he
has no regular workdays and no regular rest days can be
scheduled, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage for work
performed on Sundays and holidays.
d. Premium pay for work performed on special
holidays (now special days) which fall on
employee’s scheduled rest day.
Work performed on any special holiday (now special day)
shall be paid with an additional compensation of at least
thirty percent (30%) of the regular wage of the employee.
Where such holiday work falls on the employee’s scheduled
rest day, he shall be entitled to additional compensation of at
least fifty percent (50%) of his regular wage.
e. Higher rate provided in agreements.
Where the collective bargaining agreement or other
applicable employment contract stipulates the payment of
higher premium pay than that prescribed by law, the
employer shall pay such higher rate.
HOLIDAY PAY
1. Holiday pay; meaning and purpose:
Holiday pay is a premium given to employees pursuant to law even
if he is not suffered to work on a regular holiday.
- If worker did not work on regular holiday, he is entitled
to 100% of his basic pay;
- If he worked, he is entitled to 200% thereof.
2. List of regular holidays and special days:
A. Regular holidays.
New Year’s Day - January 1
Maundy Thursday - Movable date
Good Friday - Movable date 4. “Special holidays” are now known as “special
Araw ng Kagitingan days.”
5. Principle of “no work, no pay” applies to special
[Bataan and Corregidor Day] - April 9
days but not to unworked regular holidays where
Labor Day - May 1 the employees are always paid the equivalent of
Independence Day - June 12 100% of their basic pay.
6. Premium pay for work performed during special
National Heroes Day - Last Sunday of August
days – 30% on top of basic pay.
Bonifacio Day - November 30 7. Premium pay for work performed during special
Christmas Day - December 25 days falling on scheduled rest day – 50% over and
above the basic pay.
Rizal Day - December 30
8. Effect of absences on entitlement to regular
holiday pay:
Plus Eidl-Fer, a Muslim holiday at the end of Ramadan
a. Employees on leave of absence with pay –
B. Nationwide special days. entitled to regular holiday pay.
b. Employees on leave of absence without pay on
All Saint’s Day - November 1 the day immediately preceding a regular
Last Day of the Year - December 31 holiday may not be paid the required holiday
Plus Ninoy Aquino Day pay if he has not worked on such regular
holiday.
3. Distinction between “regular holidays” and “special days”: c. Employees on leave while on SSS or
a. A covered employee who does not work employee’s compensation benefits –
during regular holidays is paid 100% of Employers shall grant the same percentage of
his regular daily wage; while a covered the holiday pay as the benefit granted by
employee who does not work during a competent authority in the form of employee’s
special day does not receive any compensation or social security payment,
compensation under the principle of “no whichever is higher, if they are not reporting
work, no pay.” for work while on such benefits.
d. When the day preceding regular holiday is a
b. A covered employee who works during
nonworking day or scheduled rest day –
special days is paid 200% of his regular
employees shall not be deemed to be on leave
daily wage; while a covered employee who
of absence on that day, in which case, he
works during special days is only paid an
shall be entitled to the regular holiday pay if
additional compensation of not less than
he worked on the day immediately preceding
30% of the basic pay or a total of 130%
the non-working day or rest day.
and at least 50% over and above the basic
pay or a total of 150% if the worker is
permitted or suffered to work on special 9. Rule in case of successive regular holidays – an
days which fall on his scheduled rest day. employee may not be paid for both holidays if he
absents himself from work on the day
immediately preceding the first holiday, unless he
30
 works on the first holiday, in which case, he is
entitled to his holiday pay on the second holiday.
10. Rule in case of two regular holidays falling on the
same day (e. g., Araw ng Kagitingan and Good
Friday falling on April 9, 1993) –if employee did
not work: 200% of basic pay; If employee worked:
300% of basic pay.
Service incentive leave
1. Every covered employee who has rendered at least
one (1) year of service shall be entitled to a yearly
service incentive leave of five (5) days with pay.
2. Meaning of “one year of service” – service within
twelve (12) months, whether continuous or
broken, reckoned from the date the employee
started working, , including authorized absences
and paid regular holidays, unless the number of
working days in the establishment as a matter of
practice or policy, or that provided in the
employment contract, is less than twelve (12)
months, in which case, said period shall be
considered as one (1) year for the purpose of
determining entitlement to the service incentive
leave.
3. Service incentive leave is commutable to cash if
unused at the end of the year.
4. The basis of computation of service incentive
leave is the salary rate at the date of commutation.
5. Grant of vacation leave or sick leave may be
considered substitute for service incentive leave.
(Note: there is no provision in the Labor Code
granting vacation or sick leave).
Service charges
1. Coverage – The rule on service charges applies
only to establishments collecting service charges,
such as hotels, restaurants, lodging houses, night
clubs, cocktail lounges, massage clinics, bars,
casinos and gambling houses, and similar
enterprises, including those entities operating
primarily as private subsidiaries of the
31
government. It applies to all employees of covered
employers, regardless of their positions,
designation or employment status, and
irrespective of the method by which their wages
are paid.
2. Distribution of service charges (Percentage of
sharing):
a. eighty-five percent (85%) for the employees to
be distributed equally among them; and
b. fifteen percent (15%) for the management to
answer for losses and breakages and
distribution to managerial employees.
3. The P2,000.00 salary ceiling for entitlement
thereto is no longer applicable.
4. The shares shall be distributed to employees not
less often than once every 3 weeks or twice a
month at intervals not exceeding 16 days.
WAGES
1. Attributes of wage:
a. It is the renumeration or earnings, however
designated, for work done or to be done or for
services rendered or to be rendered.
b. It is capable of being expressed in terms of
money, whether fixed or ascertained on a
time, task, piece, or commission basis, or
other method of calculating the same;
c. It is payable by an employer to an employee
under a written or unwritten contract of
employment for work done or to be done, or
for services rendered or to be rendered; and
d. It includes the fair and reasonable value, as
determined by the Secretary of Labor and
Employment, of board, lodging, or other
facilities customarily furnished by the
employer to the employee. “Fair and
reasonable value” shall not include any profit
 to the employer, or to any person affiliated
with the employer.
2. “Wage”, “salary” and “pay”; distinction – they are
synonymous in meaning and usage.
3. Commission – may or may not be treated as part of wage
depending on the circumstances.
4. Actual work is the basis of claim for wages (No work, no
pay”).
Facilities
1. “Facilities” shall include articles or services for
the benefit of the employee or his family but shall
not include tools of the trade or articles or
services primarily for the benefit of the employer
or necessary to the conduct of the employer’s
business.
2. Value of facilities – the fair and reasonable value
of board, lodging and other facilities customarily
furnished by an employer to his employees both
in agricultural and non-agricultural enterprises.
Supplements
1. “Supplements” means extra renumeration or
special privileges or benefits given to or received
by the laborers over and above their ordinary
earnings or wages.
2. “Facilities” and “supplements”, distinction: The
benefit or privilege given to the employee which
constitutes an extra renumeration over and above
his basic or ordinary earning or wage, is
supplement; and when said benefit or privilege is
part of the laborer’s basic wage, it is a facility. The
criterion is not so much with the kind of the
benefit or item (food, lodging, bonus or sick leave)
given but its purpose. Thus, free meals supplied
by the ship operators to crew members, out of
necessity, cannot be considered as facilities but
supplements which could not be reduced having
been given not as a part of wages but as
necessary matter in the maintenance of the
32
health and efficiency of the crew personnel during
the voyage.
1. Rule on deductibility. – Facilities may be charged
to or deducted from wages. Supplements, on the
other hand, may not be so charged.
Gratuity and allowances.
1. “Gratuity” is a gift given by the employer in
appreciation of certain favors or services
rendered. It is not part of wages since, strictly
speaking, it is not intended as compensation for
actual work. It is further not demandable as a
matter of right.
2. “Allowances” are not part of wages. Therefore, in
the computation of the amount of retirement and
other benefits, allowances shall not be included
therein.
Bonus
1. Bonus, not generally demandable.- bonus is an
amount granted and paid ex gratia to the
employee for his industry or loyalty, hence,
generally not demandable or enforceable. If there
is no profit, there should be no bonus. If profit is
reduced, bonus should likewise be reduced,
absent any agreement making such bonus part of
the compensation of the employees.
2. Bonus; when demandable and enforceable. On the
basis of equitable considerations, long practice,
agreement (e. g. CBA) and other peculiar
circumstances, bonus may become demandable
and enforceable. Consequently, if bonus is given
as an additional compensation which the
employer agreed to give without any condition
such as success of business or more efficient or
more productive operation, it is deemed part of
wage or salary, hence, demandable.
3. Unlike 13th month pay, bonus may be forfeited in
case employee is found guilty of an administrative
charge.
13th month pay
1. “Thirteenth-month pay” shall mean one twelfth
(1/12) of the basic salary of an employee within a
calendar year.
2. All rank-and-file employees are entitled to a 13th-
month pay regardless of the amount of basic
salary that they receive in a month and regardless
of their designation or employment status, and
inspective of the method by which their wages are
paid, provided that they have worked for at least
one (1) month during a calendar year.
3. Exempted employers –
a. the government and any of its political
subdivision, including government-owned and
controlled corporations, except those
corporations operating essentially as private
subsidiaries of the government.
b. Employers already paying their employees
13thmonth pay or more in a calendar year or
its equivalent at the time of this issuance.
c. Employers of household helpers and persons
in the personal service of another in relation
to such workers.
d. Employers of those are paid on purely
commission, boundary, or task basis, and
those who are paid a fixed amount for
performing a specific work, irrespective of the
time consumed in the performance thereof,
except where the workers are paid on
piecerate basis in which case, the employer
shall be covered by the 13th month pay law
insofar as such workers are concerned.
4. The term “its equivalent” shall include Christmas bonus,
mid-year bonus, profit-sharing payments and other cash
bonuses amounting to not less than 1/12th of the basic
salary but shall not include cash and stock dividends,
cost of living allowances and all other allowances
regularly enjoyed by the employee, as well as non-
monetary benefits. Where an employer pays less than
33
1/12th of the employee’s basic salary, the employer shall
pay the difference.
5. Time of payment. – The required 13th month pay shall be
paid not later than December 24 of each year.
6. 13th-month pay for employees with multiple employers. –
Government employees working part-time in a private
enterprise, including private educational institutions, as
well as employees working in two or more private firms,
whether on full or part-time basis, are entitled to the
required 13th-month pay from their private employers
regardless of their total earnings from each or all their
employers.
7. 13th month pay is tax exempt (R. A. 7833).
8. May payment of bonus be credited as payment of
13thmonth pay?
a. Marcopper Mining Corp. vs. Ople, et. al.
case – No
b. NFSW vs. Ovejera, et. al. case – Yes
c. DOLE Philippines vs. Leogardo, et. al. case
– Yes
d. Brokenshire Memorial Hospital, Inc. vs.
NLRC, et. al. case –No
e. United CMC Textile Workers union vs.
Valenzuela, et. al. case – No
f. Universal Corn Products vs. NLRC, et. al.
case –
Yes
g. FEU Employees Labor Union vs. FEU case
(involving transportation allowance which
was treated as compliance with 13th
month pay)
h. Framanlis Farms, Inc. vs. Minister of Labor,
et. al. case – No
i. Kamaya Point Hotel vs. NLRC, et. al. case –
Yes
j. UST Faculty Union vs. NLRC, et. al. case –
No
No 14th month pay
There is no law mandating the payment of 14th-month pay.
It is, therefore, in the nature of a bonus which may not be
imposed upon the employer. It is a gratuity to which the
recipient has no right to make a demand. Kamaya Point
Hotel vs. NLRC, et. al., G. R. No. 75289, August 31, 1989, 177
SCRA 160).
MINIMUM WAGE
Regional minimum wages
1. The minimum wage rates for agricultural and
nonagricultural workers and employees in every
region shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards
(RTWPB) which shall in no case be lower than the
statutory minimum wage rates.
2. The term “statutory minimum wages” refers
simply to the lowest basic wage rate fixed by law
that an employer can pay his workers.
3. The basis of the minimum wage rates prescribed
by law shall be the normal working hours which
shall not be more than eight (8) hours a day.
Prohibition against elimination or diminution of benefits
This principle mandates that the reduction or diminution or
withdrawal by employers of any benefits, supplements or
payments as provided in existing laws, individual
agreements or collective bargaining agreements between
workers and employers or voluntary employer practice or
policy, is not allowed.
PAYMENT OF WAGES: In what form, where, when and to
should wages be paid>
Forms of payment of wages
1. Under the Civil Code, it is mandated that the
laborer’s wages shall be paid in legal currency.
Under the Labor Code and its implementing
rules, as a general rule, wages shall be paid in
legal tender and the use of tokens, promissory
notes; vouchers, coupons or any other form
alleged to represent legal tender is prohibited
even when expressly requested by the employee.
34
2. Exceptions; payment by check or money order, or
through automatic teller machines (ATM card) or
other similar electronic devices, provided the
following concur:
a. there is a bank or other facility for
encashment within a radius of one (1)
kilometer from the workplace;
b. the employer or any of his agents or
representatives does not receive any
pecuniary benefit directly or indirectly from
the arrangement;
c. the employees are given reasonable time
during banking hours to withdraw their wages
from the bank which time shall be considered
as compensable hours worked if done during
working hours; and
d. the payment by check or through ATM Card is
with the written consent of the employees
concerned, if there is no collective agreement
authorizing the payment of wages by bank
checks.
Time of payment of wages
1. Time of payment; exception.- The general rule is,
wages shall be paid not less often than once every
two (2) weeks or twice a month at intervals not
exceeding sixteen (16) days. No employer shall
make payment with less frequency than once a
month. The exception to above rule is when
payment cannot be made with such regularity
due to force majeure or circumstances beyond the
employer’s control, in which case, the employer
shall pay the wages immediately after such force
majeure or circumstances have ceased.
Place of payment of wages
1. As a general rule, the place of payment shall be at or
near the place of undertaking.
 2. Exceptions:
a. When payment cannot be effected at or near
the place of work by reason of the
deterioration of peace and order conditions, or
by reason of actual or impending emergencies
caused by fire, flood, epidemic or other
calamity rendering payment thereat
impossible;
b. When the employer provides free
transportation to the employees back and
forth; and
c. Under any other analogous circumstances,
provided that the time spent by the employees
in collecting their wages shall be considered
as compensable hours worked.
3. Payment of wages in bars, massage clinics or
nightclubs is prohibited except in the case of
employees thereof.
4. Payment through banks – allowed in business
and other entities with twenty five (25) or more
employees and located within one (1) kilometer
radius to a commercial, savings or rural bank.
Direct payment of wages
1. General rule: payment of wages shall be made
directly to the employee entitled thereto and to
nobody else.
2. Exceptions.
a. Where the employer is authorized in writing
by the employee to pay his wages to a member
of his family;
b. Where payment to another person of any part
of the employee’s wages is authorized by
existing law, including payments for the
insurance premiums of the employee and
union dues where the right to check-off has
been recognized by the employer in
accordance with a collective agreement or
35
authorized in writing by the individual
employees concerned; or
c. In case of death of the employee, in which
case, the same shall be paid to his heirs
without necessity of intestate proceedings.
Contracting or subcontracting
1. Parties.- There are 3 parties: principal, the
contractor or subcontractor, and the workers
engaged by the latter. The principal and the
contractor or subcontractor may be a natural or
jurisdictional person.
- “Principal” refers to any employer who puts
out or farms out a job, service, or work to a
contractor or subcontractor, whether or not
the arrangement is covered by a written
contract.
- “Contractor” or “Subcontractor” refers to any
person or entity engaged in a legitimate
contracting and subcontracting
arrangements.
- “Contractual employee” includes one employed
by a contractor subcontractor to perform or
complete a job, work or service pursuant to
an arrangement between the latter and a
principal called “Contractor” or
“Subcontractor”.
2. Contracting or Subcontracting; definition.- It
refers to an arrangement whereby a principal
agrees to put out or farm out with a contractor or
subcontractor the performance or completion of a
specific job, work or service within a definite or
predetermined period, regardless of whether such
job, work or service is to be performed or
completed within or outside the premises of the
principal.
3. Contracting or Subcontracting; when legitimate.
It shall be if the following circumstances concur:
 (i) The contractor or subcontractor carries on a
distinct and independent business and
undertakes to perform the job, work or service
on its own account and under its own
responsibility, according to its own manner
and method, and free from the control and
directions of the principal in all matters
connected with the performance of the work
except as to the results thereof;
(ii) The contractor or subcontractor has
substantial capital or investment; and
(iii) The agreement between the principal and the
contractor or subcontractor assures the
contractual employees’ entitlement to all labor
and occupational safety and health
standards, free exercise of the right of self-
organization, security of tenure, and social
and welfare benefits.
4. Permissible contracting or subcontracting
The principal may engage the services of a contractor or subcontractor
for the performance of any of the following:
(a) Works or services temporarily or occasionally
needed to meet abnormal increase in the
demand of products or services, provided that
the normal production capacity or regular
workforce of the principal cannot reasonably
cope with such demands;
(b) Works or services temporarily or occasionally
needed by the principal for undertaking
requiring expert or highly technical personnel to
improve the management or operations of an
enterprise;
(c) Services temporarily needed for the introduction
or promotion of new products, only for the
duration of the introductory or promotional
period;
(d) Works and services not directly related or not
integral to the main business or operation of the
principal, including casual work, janitorial,
36
security, landscaping, and messengerial services
and work not related to manufacturing processes
in manufacturing establishments;
(e) Services involving the public display of
manufacturers’ products which do not involve
the act of selling or
issuance of receipts or invoices;
(f) Specialized works involving the use of some
particular, unusual or peculiar skills, expertise,
tools or equipment the performance of whish is
beyond the competence of the regular workforce
or production capacity of the principal; and
(g) Unless a reliever system is in place among the
regular workforce, substitute services for absent
regular employees provided that the period of
service shall be coextensive with the period of
absence and the same is made to the substitute
employee at the time of engagement. The phrase
“absent regular employees” includes those who
are serving suspensions or other disciplinary
measures not amounting to termination of
employment meted out by the principal but
excludes those on strike where all the formal
requisites for the legality of the strike have been
prima facie complied with based on the records
filed with the National Conciliation and
Mediation Board. (Section 6, Rule VIIIA, Book III,
Rules to Implement the Labor Code, as amended
by Department Order No. 10, Series of 1997).
5. Prohibitions.
The following are hereby declared prohibited for being contrary
to law or public policy:
(a) Labor-only contracting;
(b) Contracting out of work which will either
displace employees of the principal from their
jobs or reduce their regular working hours;
(c) Contracting out of work with a “cabo”. [A “cabo”
refers to a person or group of persons or to a
labor group which, in the guise of a labor
organization, supplies workers to an employer,
 with or without any monetary or other
consideration whether in the capacity of an
agent of the employer or as an ostensible
independent contractor.]
(d) Taking undue advantage of the economic
situation or lack of bargaining strength of the
contractual employee, or undermining his
security of tenure or basic rights, or
circumventing the provisions or regular
employment in any of the following instances:
(i) In addition to his assigned function, requiring
the contractual employee to perform functions
which are currently being performed by the
regular employee of the principal or of the
contractor or subcontractor;
(ii) Requiring him to sign as a precondition to
employment or continued employment an
antedated resignation letter; a blank payroll; a
waiver of labor standards including minimum
wages and social welfare benefits; or a
quitclaim releasing the principal, contractor
or subcontractor from any liability as to
payment of the future claims; and
(iii) Requiring him to sign a contract fixing the
period of employment to a term shorter than
the term of the contract between the principal
and the contractor or subcontractor, unless
the latter contract is divisible into phases for
which substantially different skills are
required and this is made known to the
employee at the time of engagement.
(e) Contracting out of a job, work or service through
an inhouse agency as defined herein;
(f) Contracting out of a job, work or service directly
related to the business or operation of the
principal by reason of a strike or lockout whether
actual or imminent; and
(g) Contracting out of a job, work or service when not
justified by the exigencies of the business and the
same results in the reduction or splitting of the
bargaining unit.
37
Labor-only contracting
There is “labor-only contracting” when contractor or
subcontractor merely recruits, supplies or places workers to
perform a job, work or service for a principal and the
following elements are present:
(i) The contractor or subcontractor does not have
substantial capital or investment to actually perform a job,
work or service under its own account and responsibility;
and
(ii) The employees recruited, supplied or placed by such
contractor or subcontractor are performing activities which
are directly related to the main business of the principal.
In-house agency
Similarly prohibited under the law is the operation of an
“in-house agency” whereby a contractor or subcontractor is engaged in
the supply of labor which:
(i) is owned, managed or controlled by the principal; and (ii)
operates solely for the principal owning, managing, or
controlling it.
A finding that a contractor is a “labor-only” contractor is
equivalent to a finding that there exists an employer-
employee relationship between the owner of the project and
the employee of the “labor-only” contractor since that
relationship is defined and prescribed by law itself.
Indirect Employer; liability
1. The principal is considered the indirect employer
of the workers supplied by independent
contractor or subcontractor.
2. The nature of the liability of the principal is joint
and solidarily with the contractor or
subcontractor in case the latter failed to pay the
wages of the employees.
Worker preference in case of bankruptcy
1. The right to perform given to workers under
Article 110 cannot exist in any effective way prior
to the time of its presentation in distribution
proceedings. Article 110 applies only in case of
bankruptcy or judicial liquidation of the employer.
2. Judicial proceedings in rein is required for
creditors’ claims against debtors to become
operative.
3. To contend that Article 110 of the Labor Code is
applicable also to extrajudicial proceedings would
be putting the worker in a better position than
the State which could only assert its own prior
preference in case of a judicial proceeding.
4. The right of preference as regards unpaid wages
recognized by Article 110 of the Labor Code does
not constitute a lien on the property of the
insolvent debtor in favor of the workers but a
right to a first preference in the discharge of the
funds of the judgment debtor.
5. Article 110 of the Labor Code does not purport to
create a lien in favor of workers or employees for
unpaid wages upon all of the properties or upon
any particular property owned by their employer.
Claims for unpaid wages do not, therefore, fall at
all within the category of specially preferred
claims established under articles 2241 and 2242
of the Civil Code, except to the extent that such
claims for unpaid wages are already covered by
Article 2241, number 6: “claims of laborers and
other workers engaged in the construction,
reconstruction or repair of buildings, canals and
other works, upon said buildings, canals or other
works.” To the extent that claims for unpaid
wages fall outside the scope of Article 2241,
number 6 and 2242, number 3, they would come
within the ambit of the category of ordinary
preferred credits under Article 2242.
6. Mortgage credit.- A mortgage credit id a special
preferred credit under Article 2241 of the Civil
Code while workers’ preference is an ordinary
preferred credit.
38
7. Preference of taxes. In one case, it has held that
there is no merit in the contention of the NLRC
that taxes are also absolutely preferred claims
only with respect to movable and immovable
properties on which they are due. The claim of
the government predicated on a tax lien is
superior to the claim of a private litigant
predicated on a judgment. Tthe tax lien attaches
not only from the service of the warrant of
distraint property but from the time of the tax
become due and payable.
Attorney’s fees
1. In cases of unlawful withholding of wages, the
employer may be assessed attorney’s fees
equivalent to ten percent (10%) of the amount of
wages recovered.
2. It shall be unlawful for any person to demand or
accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s
fees which exceed ten percent (10%) of the
amount of wages recovered.
3. The attorney’s fees may be awarded only when
the withholding of wages is declared unlawful.
4. The basis of the 10% attorney’s fees is the
amount of wages recovered. Should there be any
other monetary awards given in the proceedings,
the same may not be assessed or subjected to the
10% attorney’s fees.
PROHIBITIONS REGARDING WAGES
Non-interference in disposal of wages
1. Employers are not allowed to interfere in the disposal of
wages of employees.
Wage deduction
Deductions from the wages of the employees may be
made by the employer in any of the following cases:
 a. When the deductions are authorized by law, (e. g.
SSS, Pag-IBIG), including deductions for the
insurance premiums advanced by the employer in
behalf of the employee as well as union dues
where the right to check-off has been recognized
by the employer or authorized in writing by the
individual employee himself;
b. When the deductions are with the written
authorization of the employees for payment to a
third person and the employer agrees to do so,
provided that the latter does not receive any
pecuniary, directly or indirectly, from the
transaction;
c. Withholding tax mandated under the National
Internal
Revenue Code;
d. Withholding of wages because of employee’s debt
to the employer which is already due;
e. Deductions made pursuant to a judgment against
the worker under circumstances where the wages
may be the subject of attachment or execution
but only for debts incurred for food, clothing,
shelter and medical attendance.
f. When deductions from wages are ordered by the
court;
g. Deductions made for agency fee from non-union
members who accept the benefits under the CBA
negotiated by the bargaining union. This form of
deduction does not require the written
authorization of the non-union member.
Deposits for loss or damage
No employer shall require his worker to make deposits from
which deductions shall be made for the reimbursement of
loss of or damage to tools, materials, or equipment supplied
by the employer, except when the employer is engaged in
such trades, occupations or business where the practice of
making deductions or requiring deposits is a recognized one,
or is necessary or desirable as determined by the Secretary
of Labor and Employment in appropriate rules and
regulations.
39
Withholding of wages and kickbacks prohibited
It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce
him to give up any part of his wages by force, stealth,
intimidation, threat or by any other means whatsoever
without the worker’s consent.
Deductions to ensure employment
It shall be unlawful to make any deduction from the wages
of any employee for the benefit of the employer or his
representative or intermediary as consideration of a promise
of employment or retention in employment.
Retaliatory measures
It shall be unlawful for an employer to refuse to pay
or reduce the wages and benefits, discharge or in any
manner discriminate against any employee who has filed any
complaint institute any proceeding or has testified or is
about to testify in such proceedings.
False reporting
It shall be unlawful for any person to make any statement,
report, or record filed or kept pursuant to the provisions of
this Code knowing such statement, report to be false in any
material respect.
Wage Order
1. “Wage order” refers to the Order promulgated by
the Regional Tripartite Wages and Productivity
Board (RTWPB) pursuant to its wage fixing
authority.
2. Necessity for wage order.- Wherever conditions in
a particular region so warrant, the RTWPB shall
investigate and study all pertinent facts and
based on the standards and criteria herein
prescribed, shall proceed to determine whether a
Wage Order should be issued.
3. Affectivity of wage order.- Any Wage Order shall
take effect after fifteen (15) days from its complete
 publication in at least one (1) newspaper of
general circulation in the region.
4. Appeal to the National Wages and Productivity
Commission.- Any party aggrieved by the Wage
Order issued by the RTWPB may appeal such
order to the Commission within ten (10) calendar
days from the publication of such order. The filing
of the appeal does not stay the order or suspend
the affectivity thereof unless the person appealing
such order shall file with the Commission, an
undertaking with a surety or sureties satisfactory
to the Commission for the payment to the
employees affected by the order of the
corresponding increase, in the event such order is
affirmed.
Standards/Criteria for minimum wage fixing
1. in the determination of regional minimum wages,
the Regional Board shall, among other relevant
factors, consider the following: (a) The demand for
living wages;
(b) Wage adjustment vis-à-vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the
countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of
employers;
(i) Effects on employment generation and family income;
and
(j) The equitable distribution of income and wealth along
the imperatives of economic and social development.
Wage distortion
“Wage distortion” is a situation where an increase in
prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wage or
salary rates between among employee groups in an
establishment as to effectively obliterate the distinctions
40
embodied in such wage structure based on skills, length or
service, or other logical bases of differentiation.
The issue of whether or not a wage distortion exists is a
question of fact that is within the jurisdiction of the
quasijudicial tribunals.
ADMINISTRATION AND ENFORCEMENT
Distinctions between Article 128 (b), Article 129 and Article
217
For purposes of clarification, the following are the major
distinctions regarding the jurisdictions over money claims of
the Secretary of Labor and Employment under Article 128 [b],
the Regional Director of the Department of Labor and
Employment under Article 129 and the Labor Arbiter under
Article 217 of the Labor Code.
1. On the nature of the powers granted and proceedings.
Article 128 [b] involves the exercise by the Secretary of
Labor and Employment or his duly authorized
representatives, of the visitorial and enforcement powers
provided therein.
Article 129 involves the exercise by the Regional
Director of the Department of Labor and Employment or any
of the duly authorized hearing officers of the Department, of
adjudicatory powers over cases concerning recovery of
wages, simple money claims and other benefits not
exceeding P5,000.00 and not accompanied by any claim for
reinstatement.
Article 217 involves the exercise by the Labor Arbiter of
its quasi-judicial power to hear and decide claims involving
an amount exceeding P5,000.00 regardless of whether
accompanied with a claim for reinstatement.
2. On the person or officer granted the powers Article 128 [b]
grants the power to specifically to the Secretary of Labor
and Employment or his duly authorized representative.
The Regional Directors shall be the duly authorized
representatives of the Secretary of Labor and Employment in
the administration and enforcement of labor standards
within their respective territorial jurisdictions. (Section 3,
Rule I, Rules on the Disposition of Labor Standards Cases in
the Regional Offices, September 16, 1987).
Article 129 grants the power specifically to the Regional
Director of the Department of Labor and Employment or any
of the duly authorized hearing officers of the Department.
Article 217 grants the power specifically to the Labor Arbiters of
the National Labor Relations Commission.
3. On the subject matter.
Article 128 [b] applies only to inspection cases involving
findings of the labor employment and the enforcement
officers or industrial safety engineers regarding violations of
labor standards provisions of the Labor Code and other labor
legislations.
The term “labor standards” refers to the minimum
requirements prescribed by existing laws, rules and
regulations and other issuances relating to wages, hours of
work, cost of living allowances and other monetary and
welfare benefits, including those set by occupational safety
and health standards. (Section 7, Rule 1, Rules on the
Disposition of Labor Standards Cases in the Regional Offices,
September 16, 1987).
Article 129 applies only to cases initiated by complaint
filed by any interested party involving the recovery of wages
and other monetary claims and benefits (including interest)
but the amount of which should not exceed P5,000.00 and
should not include a claim for reinstatement.
Article 217 applies only to cases of claims involving an
amount exceeding P5,000.00 whether or not accompanied
with a claim for reinstatement.
4. On the party initiating the action.
41
Article 128 [b] contemplates situations where the case for
violation of labor standards laws and other labor regulations,
arose from the routine inspection conducted by the labor
employment and enforcement officer or industrial safety
engineers of the Department of Labor and Employment, with
or without a complaint initiated by an interested party. Here,
it is generally the Department of Labor and Employment
which initiates the action.
Article 129 contemplates situations where there is a
complaint initiated by an interested party for recovery of
wages, simple money claims and other benefits. Here, it is
the complainant who initiates the action.
Article 217 contemplates situations where a complaint is initiated by a
worker, whether agricultural or non-agricultural.
Here, it is the complainant who initiates the action.
5. On the existence of employer-employee relationship.
Article 128 [b] is applicable only when the employer-employee
relationship still exists. In case the relationship no longer
exists, claims for payment of monetary benefits fall within
the exclusive and original jurisdiction of the Labor Arbiters.
Accordingly, if on the face of the complaint, it can be
ascertained that employeremployee relationship no longer
exists, the case, whether or not accompanied by an
allegation of illegal dismissal, shall immediately be endorsed
by the Regional Director to the appropriate Branch of the
National Labor Relations Commission. (Section 3, Rule II,
Rules on the Disposition of Labor Standards Cases in the
Regional Offices, September 16, 1987).
Article 129 is applicable whether the employer-employee
relationship still exists or not for as long as the claim arose
from said relationship.
Article 217 is applicable irrespective of whether or not the
employer-employee relationship still exists for as long as the
claim arose from said relationship.
6. On the remedy of appeal, how taken.
Article 128 [b] grants appeal from the order issued by the
duly authorized representative of the Secretary of Labor and
Employment to the latter.
Article 129 grants appeal from the decision of the Regional
Director or Hearing Officer to the National Labor Relations
Commission.
Article 217 grants appeal from the decision of the Labor Arbiter
to the National Labor Relations Commission.
7. On the reglementary period of appeal.
Article 128 [b] prescribes no specific reglementary period
for appeal. The law is silent on this matter. However, under the
Rules on the Disposition of Labor Standards Cases in the
Regional Offices promulgated on September16, 1987 by the
Secretary of Labor and Employment, the reglementary period
is fixed at ten (10) calendar days from receipt of the order.
(Section 1, Rule IV, Rules on the Disposition of Labor
Standards Cases in the Regional Offices, September 16,
1987).
Article 129 prescribes the reglementary period of five (5)
calendar days from receipt of a copy of the decision or
resolution, within which to perfect the appeal.
Article 217 does not contain any provision on the
reglementary period for appeal. However, Article 223
prescribes the reglementary period of ten (10) calendar days
from receipt of the decision, award or order of the Labor
Arbiter, within which to perfect appeal.
8. On requirement of posting of bond to
perfect the appeal. Article 128 [b] requires that in case
the order subject of the appeal involves monetary
award, an appeal by the employer may be perfected
only upon the posting of cash or surety bond issued
by a reputable bonding company duly accredited by
the Secretary of Labor and Employment in the
42
amount equivalent to the monetary award in the
order appealed from.
Article 129 is silent on the requirement of bond, hence, this is not
required to perfect the appeal.
Article 129 does not embody the provision requiring posting
of bond to perfect the appeal but Article 223. A bond may
stay the execution of monetary awards but not the order of
reinstatement which is executory even pending appeal.
9. On the grounds for appeal.
Article 128 [b] does not specify the grounds for appeal. But
the Rules on the Disposition of Labor Standards Cases in the
Regional Offices which was issued by the Secretary of Labor
and Employment on September 16, 1987, to implement
Article 128 [b] (prior to its amendment by Republic Act No.
7730 on June 2, 1994), enumerates the following grounds:
a. there is a prima facie evidence of abuse of discretion on
the part of the Regional Director;
b. the Order was secured through fraud, coercion or graft
and corruption;
c. the appeal is made purely on questions of law; or
d. serious errors in the findings of facts were committed
which, if not corrected, would cause grave or
irreparable damage to the appellant.
Article 129 expressly makes reference to the grounds
provided in Article223 of the Labor Code as applicable to
appeals brought under this Article.
Article 217 does not contain the grounds but those
mentioned in Article 223 are applicable to appeals from
decisions, awards or orders of the Labor Arbiter.
10. On period to decide appeal and finality of decisions.
Article 128 [b] does not prescribe the period within which to
decide the appeal and when such decision will become final
and executory. However, its implementing rules, while not
providing the period within which the decision should be
rendered, mention that the decisions, orders or resolutions
of the Secretary of Labor and Employment shall become final
and executory after ten (10) calendar days from receipt
thereof. (Section 5, Rules on the Disposition of Labor
Standards Cases in the Regional Office).
Article 129 mentions expressly that the NLRC should resolve
the appeal within ten (10) calendar days from the
submission of the last pleading required or allowed under its
rules contrary to Article 223 which provides for twenty (20)
calendar days. With respect to the finality of the decision on
the appealed case. Article 223 provides that the same shall
be final and executory after ten (10) calendar days from
receipt thereof by the parties.
Article 217 does not embody the provision on the period to
decide appealed cases or the period within which such
decision shall become final and executory. These matters are
provided under Article 223 of the Labor Code.
EMPLOYMENT OF WOMEN
THE LAW ON WORKING CONDITIONS FOR SPECIAL GROUP
OF EMPLOYEES
NOTE: Article 130 and 131 of the Labor Code, as amended
was replaced with the provisions on Nightworkers (Articles
154 to
161) pursuant to Rep. Act No. 10151, June, 2011
NEW: The provisions on night workers are:
Art. 154. Coverage. – This chapter shall apply to all persons
who shall be employed or permitted or suffered to work at
night, except those employed in agriculture, stock raising,
fishing, maritime transport and inland navigation, during a
period of not less than seven (7) consecutive hours, including
the interval from midnight to five o’clock in the morning, to be
determined by the Secretary of Labor and Employment, after
consulting the workers’ representatives/labor orbanizations
and employers.
43
Night worker means any employed person whose work
requires performance of a substantial number of hours of night
work which exceeds a specific limit. This limit shall be fixed
by the Secretary of Labor after consulting the worker’s
representatives/labot organizations and employers (R.A.
10151, signed into law on 21 June 2011).
Art. 156. Health Assessment. – At their request, workers
shall have the right to undergo a health assessment without
charge and to receive advice on how to reduce or avoid health
problems associated with their work:
(d) Before taking up an assignment as a night worker; (e) At
regular intervals during such an assignment; and
(f) If they experience health problems during such an
assignment which are not caused by factors other
than the performance of night work.
With the exception of a finding of unfitness for night
work, the findings of such assessments shall not be
transmitted to others without the workers’ consent and shall
not be used to their detriment. (R.A. 10151, signed into law
on 21 June 2011).
Art. 157. Transfer. – Night workers who are certified as unfit
for night work, due to health reasons, shall be transferred,
whenever practicable, to a similar job for which they are fit to
work.
If such transfer to a similar job is not practicable, these
workers shall be granted the same benefits as other workers
who are unable to work, or to secure employment during such
period.
A night worker certified as temporarily unfit for night
work shall be given the same protection against dismissal or
notice of dismissal as other workers who are prevented from
working for reasons of health. (R.A. 10151, signed into law
on 21 June 2011).
Art. 158. Women Night Workers.- Measures shall be taken to
ensure that an alternative to night work is available to
womenworkers who would otherwise be called upon to
perform such work:
 (c) Before and after childbirth, for a period of at least
sixteen (16) weeks, which shall be divided
between the
time before and after childbirth;
(d)For additional periods, in respect of which a
medical certificate is produced stating that said
additional periods are necessary for the health of
the mother or child:
 During pregnancy;
 During a specified time beyond the
period, after childbirth is fixed pursuant
to subparagraph (a) above, the length of
which shall be determined by the DOLE
after consulting the labor organizations
and employers.
During the periods referred to in this article:
(iii) A woman worker shall not be
dismissed or given notice of
dismissal, except for just or
authorized causes provided for in
this Code
that are not connected with
pregnancy, childbirth and childcare
responsibilities
(iv) A woman worker shall not lose the
benefits regarding her status,
seniority, and access to promotion
which may attach to her regular
night work position.
Pregnant woman and nursing mothers may be allowed
to work at night only if a competent physician, other than the
company physician, shall certify their fitness to render night
work, and specify, in the case of pregnant employees, the
period of the pregnancy that they can safely work.
44
The measures referred to in this article may include
transfer to day work where this is possible, the provision of
social security benefits or an extension of maternity leave.
The provisions of this article shall not have the effect of
reducing the protection and benefits connected with maternity
leave under existing laws. (R.A. 10151, signed into law on 21
June 2011).
Art. 159. Compensation. – The compensation for night workers
in the form of working time, pay or similar benefits shall
recognize the exceptional nature of night work. (R.A. 10151,
signed into law on 21 June 2011).
Art. 160. Social Services. – Appropriate social services shall be
provided for night workers and where necessary, for workers
performing night work. (R.A. 10151, signed into law on 21
June 2011).
Art. 161. Night Work Schedules. – Before introducing work
schedule requiring the services of night workers, the employer
shall consult the workers’ representatives/labor organizations
concerned on the details of such schedules and the forms of
organizations of night work that are best adapted to the
establishment and its personnel, as well as, on the
occupational health measures and social services which are
required. In establishments employing night workers,
consultation shall take place regularly. (R.A. 10151, signed
into law on 21 June 2011).
Q: What are the different facilities that an employer must at
least furnish for his women employees?
A: The Secretary of Labor may require employers to:
 Provide seats proper for women and permit them to
use the seats when they are free from work or during
office hours provided the quality of the work will not be
compromised;
  Establish separate toilet rooms and lavatories for men
and women and provide at least a dressing room for
women;
 Establish a nursery in the establishment; and
 Determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the
like.
THE MATERNITY LEAVE UNDER THE SSS LAW:
Q: Discuss briefly the concept of Maternity Leave.
A: MATERNITY LEAVE- A female member, who need not
be legally married, who has paid for at least three (3) monthly
contributions in the 12-month period immediately preceding
the semester of her childbirth or miscarriage shall be paid a
daily maternity benefit equivalent to 100% of her average
daily salary credit for 60 days or 78 days, in case of
caesarian delivery.
Maternity benefits provided herein shall be paid only
for the first four (4) deliveries or miscarriages;
Maternity benefits like other benefits granted by the SSS, are
granted in lieu of wages and therefore, may not be included in
computing the employee’s 13th month pay for the calendar
year.
In order to be entitled to the SSS benefit, the female employee
should be employed at the time of the delivery, miscarriage, or
abortion.
The employee shall have notified her employer of her
pregnancy and the probable date of her childbirth, which
notice shall be transmitted to the SSS in accordance with the
rules and regulations it may provide.
Full payment shall be advanced by the employer within
thirty (30) days from the filing of the maternity leave
application.
Payment of daily maternity benefits have been received.
The SSS shall immediately reimburse the employer of one
hundred percent (100%) of the amount of maternity benefits
45
advanced to the employee by the employer upon receipt of
satisfactory proof of such payment and legality thereof.
If an employee member should give birth or suffer
miscarriage without the required contributions having been
remitted for her by her employer to the SSS, or without the
latter having been previously notified the employer of the time
of the pregnancy, the employer shall pay to the SSS damages
equivalent to the benefits which said employee would
otherwise have been entitled to.
Q: What are the different facilities that an employer must at
least furnish for his women employees?
A: The Secretary of Labor may require employers to:
9. Provide seats proper for women and permit them to
use the seats when they are free from work or during
office hours provided the quality of the work will not be
compromised;
10. Establish separate toilet rooms and lavatories for men
and women and provide at least a dressing room for
women;
11. Establish a nursery in the establishment; and
12. Determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the
like.
THE MATERNITY LEAVE LAW
Q: Discuss briefly the concept of Maternity Leave.
A: MATERNITY LEAVE UNDER THE SSS LAW:
A female member, who need not be legally married, who has
paid for at least three (3) monthly contributions in the 12month
period immediately preceding the semester of her childbirth or
miscarriage shall be paid a daily maternity benefit equivalent
to 100% of her average daily salary credit for 60 days or 78 delivery includes childbirth, miscarriage or abortion.
days, in case of caesarian delivery. In the event that such leave was not availed of, said leave
Maternity benefits provided herein shall be paid only shall not be convertible to cash
for the first four (4) deliveries or miscarriages; The purpose is to enable the husband to lend support to
Maternity benefits like other benefits granted by the SSS, are his wife during the period of recovery and/ or in the nursing of
granted in lieu of wages and therefore, may not be included in the newly born child.
computing the employee’s 13th month pay for the calendar In order to be entitled, the following conditions must be
year. met:
5. He is an employee at the time of the delivery of
In order to be entitled to the SSS benefit, the female employee his child;
should be employed at the time of the delivery, miscarriage, or 6. He is cohabiting with his spouse at the time
abortion. she gives birth or suffers a miscarriage;
The employee shall have notified her employer of her 7. He has applied for paternity leave with his
pregnancy and the probable date of her childbirth, which employer;
notice shall be transmitted to the SSS in accordance with the 8. His wife has given birth or suffered a
rules and regulations it may provide. miscarriage; the term wife refers to the lawful
Full payment shall be advanced by the employer within wife which means the woman who is legally
thirty (30) days from the filing of the maternity leave married to the male employee concerned.
application.
Payment of daily maternity benefits have been received. The application must be made within a reasonable time
The SSS shall immediately reimburse the employer of one from the expected date of delivery by the pregnant spouse and
hundred percent (100%) of the amount of maternity benefits within such period as may be provided by company rules &
advanced to the employee by the employer upon receipt of regulations or CBA. However, prior application for leave shall
satisfactory proof of such payment and legality thereof. NOT be required in case of miscarriage.
If an employee member should give birth or suffer
miscarriage without the required contributions having been Q: When is there discrimination based on sex?
remitted for her by her employer to the SSS, or without the
latter having been previously notified the employer of the time A: The following constitute acts of discrimination:
of the pregnancy, the employer shall pay to the SSS damages 1. Payment of a lesser compensation for work of equal
equivalent to the benefits which said employee would value.
otherwise have been entitled to.
2. Favoring a male employee over a female employee
THE PATERNITY LEAVE LAW solely on the account of their sexes.

Q: Briefly discuss paternity leave. Q: What is the law on prohibitions or stipulation against
marriage?
A: It is a benefit grants paternity leave of 7 days with full
pay, consisting of basic salary, to all married male employees A: Article 134 of the Labor Code as amended and
in the public and private sector. renumbered provides that it shall be unlawful for an employer:
Available only for the first 4 deliveries of the legitimate
spouse with whom the husband is cohabiting; the term
46
  to require as a condition for employment or
continuation of employment that a woman
employee shall not get married,
 to stipulate expressly or tacitly that upon getting
married a woman employee shall be deemed
resigned or separated
 to actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely by
reason of her marriage.
Q: What are the prohibited acts of an employer with respect to
his female employees?
A: The following constitute prohibited acts:
 To discharge any woman employed by him for the
purpose of preventing such woman from enjoying
the maternity leave, facilities and other benefits
provided under the Code;
 To discharge such woman employee on account of
her pregnancy, or while on leave or in confinement
due to her pregnancy;
 To discharge or refuse the admission of such
woman upon returning to her work for fear that
she may be pregnant;
 To discharge any woman or child or any other
employee for having filed a complaint or having
testified or being about to testify under the Code;
Q: State the law on women working nightclubs and other
similar establishments.
A: Article 136 of the Labor Code as amended and renumbered
provides that any woman who is permitted to work or suffered
to work, with or without compensation, in any night club,
cocktail lounge, massage clinic, bar or similar establishment,
47
under the effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of
Labor, shall be considered as an employee of such
establishment for purposes of labor and social legislation.
Q: Briefly state the laws on employment of minors.
A: As a general rule, no child below 15 shall be employed. The
exceptions to the rule are:
1. When the child works directly under the sole responsibility
of his/her parents or legal guardian who employs members of
his/her family only under the following conditions:
 employment does not endanger the child’s life,
safety, health and morals;
 employment does not impair the child’s normal
development; and
 the parent/legal guardian provides the child with
the primary and/or secondary education
prescribed by DECS.
2. Where the child’s employment or participation in public
entertainment or information through cinema, theater, radio, or
television is essential, provided that:
 employment does not involve advertisements or
commercials promoting alcoholic beverages,
intoxicating drinks, tobacco and its by-products or
exhibiting violence;
 There is a written contract approved by the DOLE;
and
 The conditions prescribed for the employment of
minors {above stated} are met.
Q: What are considered hazardous work places?
A: The following are considered hazardous places:
 where the nature of the work exposes the workers
to dangerous environmental elements,
contaminants or work conditions;
  where the workers are engaged in construction
work, logging, fire-fighting, mining, quarrying,
blasting, stevedoring, dock work, deep-sea fishing,
and mechanized farming;
 where the workers are engaged in the manufacture
or handling of explosives and other pyrotechnic
products;
4.where the workers use or are exposed to heavy or
powerdriven machinery or equipment; and
5.where the workers use or are exposed to power-driven tools,
Q: What are the rights of house helpers?
A: a) They cannot be assigned to non-household
work b) They are entitled to reasonable
compensation
c) They are entitled to be furnished lodging, food, and
medical attendance
d) If under 18 years old, she must be given an
opportunity for elementary education (the cost of
which shall be part of househelpers’ compensation)
e) The contract for household service shall not exceed
2 years. (Renewable however from year to year)
f) They are entitled to just and humane treatment
g) They must not to be required to work for more than
10 hours a day. If the househelper agrees to work
overtime, and there is additional compensation, the
same is permissible.
h) They have the right to four days vacation each
month with pay. (If the helper does not ask for the
vacation, the number of vacation days cannot be
accumulated, she is entitled only to its monetary
equivalent.)
i) Funeral expenses must be paid by the employer if
the househelper has no relatives with sufficient
means in the place where the head of the family
lives
j) Her termination must only be for a just cause.
48
Upon the severance of the household service relationship, the
househelper may demand from the employer a written
statement of the nature and duration of the service and his or
her efficiency and conduct as househelper.
Q: Who are homeworkers?
A: Homeworkers are those who perform in or about his
home any processing of goods or materials, in whole or in
part, which have been furnished directly or indirectly by an
employer and thereafter to be returned to the latter.
Q: Who are considered by law as the employers of these
homeworkers?
A: Any natural or artificial person who, for his own account or
benefit, or on behalf of any person residing outside the
Philippines, directly or indirectly, or through any employee,
agent, contractor, sub-contractor; or any other person:
(1) Delivers or causes to be delivered any goods or articles
to be processed in or about a home and thereafter to be
returned or to be disposed of or distributed in accordance with
his direction; or
(2) Sells any goods or articles for the purpose of having
such goods or articles processed in or about a home and then
repurchases them himself or through another after such
processing.
Facilities for women
Employers are required to:
(a) Provide seats proper for women and permit them
to use such seats when they are free from work
and during working hours, provided they can
perform their duties in this position without
detriment to efficiency;
(b) To establish separate toilet rooms and lavatories
for men and women and provide at least a
dressing room for women;
 (c) To establish a nursery in a workplace for the
benefit of the women employees therein; and
(d) To determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants
and the like.
Maternity leave benefits (Pregnant women, whether married or
not, are entitled)
1. A female member who has paid at least 3
monthly contributions in the 12-month period
immediately proceeding the semester of childbirth
or miscarriage shall be paid a daily maternity
benefit of 100% of her average daily salary credit
for 60 days or 78 days in case of caesarian
delivery. This payment of daily maternity benefit
shall be a ___ to the recovery of sickness benefit
for the same compensable period.
2. The maternity leave shall be extended without
pay on account of illness medically certified to
arise out of the pregnancy, delivery, abortion or
miscarriage, which renders the woman unfit for
work, unless she has earned unused leave credits
from which such extended leave may be charged.
3. The maternity leave shall be paid by the employer
only for the first four (4) deliveries by a woman
employee after the effectivity of this Code.
Paternity leave
Every married employee in the private and public sectors
shall be entitled to paternity leave of 7 days (for each
delivery) with full pay for the first 4 deliveries of the
legitimate spouse with whom he is cohabiting. If paternity
leave is not availed of, it is not convertible to cash.
Discrimination against woman prohibited
It shall be unlawful for any employer:
(1) To deny any woman employee the benefits
provided for in the law or to discharge any woman
employed by him for the purpose of preventing
49
her from enjoying any of the benefits provided
under the Labor Code.
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement
due to her pregnancy;
(3) To discharge or refuse the admission of such
woman upon returning to her work for work of
equal value.
(4) To pay lesser compensation to a female employee
with respect to promotion, training opportunities,
study and scholarship grants solely on account of
their sexes.
Stipulation against marriage
It shall be unlawful for an employer to require as a condition
of employment or continuation of employment that a woman
employee shall not get married, or to stipulate expressly or
tacitly that upon getting married, a woman employee shall be
deemed resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage.
Woman working in nightclubs, massage clinics, etc.
Any woman who is permitted or suffered to work, with or
without compensation, in any night club, cocktail lounge,
massage clinic, bar or similar establishments under the
effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of
Labor and Employment, shall be considered as an employee
of such establishment for purposes of labor and social
legislation.
They are considered regular employees of said
establishments except when the night club operator does not
control nor direct the details and manner of their work in the
entertainment of nightclub patrons and, having no fixed
hours or work, they may come and go as they please.
EMPLOYMENT OF MINORS
1. prohibition against child discrimination.- No
Employer shall discriminate against any person
 in respect to terms and conditions of employment
on account of his age.
2. Relevant law: Republic Act No. 7610 – The Special
Protection of Cild Against Child Abuse,
Exploitation and Discrimination Act.
Minimum employment age.
1. No child below fifteen (15) years of age shall be
employed, except when he works directly under
the sole responsibility of his parents or guardian,
and his employment does not in any way interfere
with his schooling.
2. Any person between fifteen (15) and eighteen (18)
years of age may be employed for such number of
hours and such periods of the day as determined
by the Secretary of Labor and Employment in
appropriate regulations.
3. The foregoing provisions shall in no case allow the
employment of a person below eighteen (18) years
of age in an undertaking which is hazardous or
deleterious in nature as determined by the
Secretary of Labor and Employment.
Employment of househelpers
1. “Househelper” or “domestic servant” shall refer to
any person, whether male or female, who renders
services in and about the employer’s home and
which services are usually necessary or desirable
for the maintenance and enjoyment thereof, and
ministers exclusively to the personal comfort and
enjoyment of the employer’s family.
2. Household services include the services of family
drivers, cooks, nursemaids or family servants,
but not the services of laborers in a commercial
or industrial enterprise.
3. The original contract of domestic service shall not
last for more than two (2) years but it may be
mutually renewed for such periods by the parties.
4. The minimum wage rates of househelpers shall be
the basic cash wages which shall be paid to the
househelpers in addition to lodging, food and
medical attendance.
50
5. Time and manner of payment of wages.- Wages
shall be paid directly to the househelper to whom
they are due at least once a month. No
deductions therefrom shall be made by the
employer unless authorized by the househelper
himself or by existing laws.
6. Assignment to non-household work. – No
househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise
at a wage or salary rate lower than that provided
for agricultural or non-agricultural workers as
prescribed herein.
7. Opportunity for education. – If the househelper is
under the age of eighteen (18) years, the employer
shall give him or her an opportunity for at least
elementary education. The cost of education shall
be part of the househelper’s compensation,
unless there is a stipulation to the contrary.
8. Treatment of househelpers – just and humane
manner and no physical violence.
9. The employer shall furnish the househelper, free
of charge, suitable and sanitary living quarters as
well as adequate food and medical attendance.
10. Indemnity for unjust termination of services.- If the
period of household service is fixed, neither the
employer nor the househelper may terminate the
contract before the expiration of the term, except
for a just cause. If the househelper is unjustly
dismissed, he or she shall be paid compensation
already earned plus that for fifteen (15) days by
way of indemnity. If the househelper leaves
without a justifiable reason, he or she shall forfeit
any unpaid salary due him or her not exceeding
fifteen (15) days.
EMPLOYMENT OF HOMEWORKERS & FIELD PERSONNEL
1. An industrial homeworker is a worker who is
engaged in industrial homework, a system of
production under which work for an employer or
contractor is carried out by a homeworker at
 his/her home. The materials may or may not be
furnished by the employer or contractor.
2. A field personnel is a non-agricultural employee
who regularly performs his duties away from the
principal place of business or branch office of the
employer an whose actual hours or work in the
field cannot be determined with reasonable
certainty.
\ 6. Except claims for Employees’ Compensation, Social Security,
LABOR LAWS OF THE PHILIPPINES
PART TWO
LABOR RELATIONS LAW
Labor Relations- refers to that part of labor law which
regulates the relations between employers and workers.
Example: Book V’ of the Labor Code which deals with labor
organizations, collective bargaining, grievance machinery,
voluntary arbitration, conciliation and mediation, unfair
labor practices, strikes, picketing and lockout.
Labor Standards- refers to that part of the labor law
which prescribe the minimum terms and conditions of
employment which the employer id required to grant to its
employees. Examples: Books one to four of the Labor Code
as well as Book VI thereof which deals with working
conditions, wages, hours of work, holiday pay and other
benefits, conditions of employment of women, minors,
househelpers, and homeworkers, medical and dental
services, occupational health and safety, termination of
employment and retirement.
JURISDICTION OF LABOR ARBITERS, NLRC, VOLUNTARY
ARBITRATORS & BUREAU OFLABOR RELATIONS
JURISDICTION OF LABOR ARBITERS
Original and Exclusive Jurisdiction over the following:
1. Unfair Labor practices;
2. Termination disputes;
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3. Cases that workers may file involving wages, rates of pay, hours
of work and other terms and conditions of
employment, if accompanied with claim for reinstatement;
4. Claims for actual, moral, exemplary and other forms of damages
arising from the from the employer—employee relations;
5. Cases arising from any violation of Article 264 of this Code,
including questions involving the legality of strikes and lockouts;
and
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) regardless of whether
accompanied with a claim for reinstatement.
Jurisdiction of NLRC
The National Labor Relations Commission exercises two (2)
kinds of jurisdiction: 1. original jurisdiction; and
2. exclusive appellate jurisdiction
1. Original Jurisdiction
a. Injunction in ordinary labor disputes to enjoin or restrain
any actual threatened commission of any or all
prohibi9ted or unlawful acts or to require the
performance of a particular act in any labor dispute
which, if not restrained or performed forthwith, may
cause grave or irreparable damage to any party.
b. Injunction in strikes or lockouts under Article 264 of the
Labor Code.
c. Certified labor disputes causing or likely to cause a strike
or lockout in an industry indispensable to the national
interest, certified by the Secretary of Labor and
Employment for compulsory arbitration.
2.Exclusive Appellate jurisdiction.
a. All cases decided by the Labor Arbiters including
contempt cases.
b. Cases decided by the DOLE Regional directors or his
duly authorized Hearing Officers involving recovery of
wages, simple money claims and other benefits not
 exceeding P5, 000 and not accompanied by for
reinstatement.
Distinction between jurisdiction of Labor Arbiters and NLRC.
The NLRC has exclusive appellate jurisdiction over all
cases decided by the Labor Arbiters. The NLRC does not have
original jurisdiction over the cases over which Labor Arbiter
has original and exclusive jurisdiction (see above
enumeration). If a claim does not fall within the exclusive
original jurisdiction of the Labor Arbiter, the NLRC cannot
have appellate jurisdiction thereover.
• Intra-corporate disputes.-Labor Arbiters have no
jurisdiction over termination of corporate officers and
stockholders which, under the law, is considered intra
corporate disputes. The Regional Trial Court (not SEC)
now have jurisdiction under R. A. 8799 (Securities
Regulations Act of 2000)). Jurisdiction of RTC includes
adjudication on monetary claims (such as unpaid
salaries, leaves, 13th month pay, bonuses, etc.), damages
and attorney’s fees.
• Government Corporations.- Labor Arbiters have
jurisdiction over cases involving employees of
government-owned or controlled corporations without
original charters (organized under the corporation code).
They have no jurisdiction if entity has original charter.
• Immuned entities—Labor Arbiter have no jurisdiction
over labor cases involving from suit. Exception: when
said entities propriety activities (as distinguished from
governmental functions).
• Ecclesiastical affairs. —Labor Arbiters have jurisdiction
over labor cases involving dismissal of priests and
religious ministers but not over purely ecclesiastical
(such as excommunication). In Austria vs. Hon. NLRC,
et. Al., G. R.No.124382, August 16,1999, it was held that
the fact that a case involves the church and its religious
minister does not ipso fact give the case religious
significance. Simply stated, what is involved in an illegal
dismissal case is the relationship of the church as an
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employee-a purely secular matter not related to the
practice of faith, worship or doctrines of the church, in
this case the minister was not excommunicated or
expelled from the membership of the church but was
terminated from employment based on the grounds cited
in Article 282 of the Labor Code.
Money claims under pars. (a), [3] and [6] of Article 217; classification.
Money claims falling within the original jurisdiction of the Labor
Arbiters may be classified as follows:
1) any money claim, regardless of amount,, accompanied
with a claim for reinstatement (which presupposes from
a termination case); or
2) any money claim, regardless of whether accompanied
with a claim reinstatement,, exceeding the amount five
thousand pesos (P5,000.000) per claimant (which does
not necessarily involve termination employment)
Money claims cognizable by the DLOE Regional Directors and not
by Labor Arbiter: requisites.
1. the claim must arise from employer—employee relationship;
2. the claimant does not seek reinstatement; and
3. the aggregate money claim each employee does not exceed P5,
000.00.
Receivership or liquidation of business, effect on jurisdiction of Labor
Arbiter.
The jurisdiction conferred upon Labor Arbiters and the NLRC
would not be lost simply because the assets of a former
employer had been placed under receivership or liquidation.
• Wage distortion cases.- Labor Arbiters have jurisdiction
over wage distortion cases only in unorganized
establishment, jurisdiction is vested with voluntary
arbitrators.
• Money claims OFW’s.- Labor Arbiters have jurisdiction
over all monetary claims of overseas workers.
• Strikes and Lockouts.-Labor Arbiters have jurisdiction
over legality of strikes and lockouts, except strikes and
lockouts in industries indispensable to the national
interest, in which case, either NLRC (in certified) or
DOLE Secretary (in assumed cases) has jurisdiction.
JURISDICTION OF VOLUNTARY ARBITRATORS
Original and Exclusive jurisdiction over the
following:
1. all unresolved grievances arising from the
interpretation or implementation of the collective
bargaining agreement after exhaustion of the
grievance procedure; and
2. all unresolved grievances arising
from the implementation or interpretation of
company personnel policies.
All grievances which are settled or resolved within seven (7)
calendar days from the date of the submission for resolution
to the last step of the grievance machinery, shall
automatically be referred to voluntary arbitration prescribed
in the Collective Bargaining Agreement (CBA).
• Cases cognizable by voluntary Arbitrator but filed with
NLRC and DOLE Regional Offices.-They shall
immediately be disposed and referred to the Grievance
Machinery or Voluntary arbitration provided in the
Bargaining Agreement (CBA)
• Jurisdiction over any other labor disputes, irrespective of
the nature of the case, is vested on Voluntary Arbitrators
by agreement of the parties.
JURISDICTION OF BUREAU OFLABOR RELATIONS (BLR)
Original and exclusive jurisdiction over the following:
1. “ Inter-union disputes” or “ represented
disputes” which refer to cases involving petition for
certification election filed by a duly registered labor
53
organization which is seeking to be recognized as the
sole and exclusive bargaining agent of the rank-and-
file employees in the appropriate bargaining unit of a
company, firm or establishment.
2. “Intra-union disputes” or “representation
disputes” which refer to disputes or grievances
arising from any violation or disagreement over any
provision of the constitution and-by laws of the
union, including any violation of the rights and
conditions of union membership provided for in the
Labor Code. 3. All disputes, grievances or problems
arising from or affecting labor-management relations
in all workplaces, except those arising from
interpretation or implementation of the CBA which
are subject of grievances procedure and/or voluntary
arbitration.
{Note: The BLR has the following administrative functions: (1)
registration of labor unions; (2) keeping of registry of labor
unions; and (3) maintenance and custody of CBA’s.]
APPEALS
APPEAL TO NLRC FROM DECISIONS OF LABOR ARBITERS
Four ((4) grounds for appeal:
(a) If there is a prima facie evidence of abuse of discretion
on the pat of the labor Arbiter;
(b) If the decision order or award secured through fraud
coercion, including graft and corruption;
(c) If made purely on question of law; and
(d) If serious errors in the finding of facts are raised
which would cause grave or irreparable damage or
injury to the appellant.
Requisites for perfection of Appeal.
a. the appeal should be filed on a reglementary period;
b. the Memorandum of Appeal should be under oath;
c. payment of appeal fee;
d. posting of cash surety bond, if judgment involves monetary award;
and
e. proof of service to the adverse party.

Reglementary period- 10 calendar days.
a. Saturdays, Sundays and Legal Holidays included in reckoning 10-
day reglementary period.
f. Exceptions to 10-day calendar day period rule.
1. Appeal filed before the Vir-Jen case (G. R. Nos. 58011-12, July
20,1982) at a time when the rule was 10 working days.
2. 10th day falling on a Saturday.
3. 10th day falling on a Sunday or Holiday.
4. Reliance on erroneous notice of decision.
5. Appeal on the decision of Labor Arbiter on third—party claim (10
working days).
6. Appeal from the decision of Labor Arbiter in direct contempt cases
(5 calendar days).
7. When allowing the appeal “in interest of justice.”
8. Allowing the appeal for other compelling reasons (due to typhoon
falling on the 10th day; or excusable negligence).
c. the 10 calendar day reglementary period to appeal is not extendible.
d. Motion for Reconsideration of Labor Arbiter’s decision is not
allowed.
e. 10 calendar-day period so counted from receipt of decision by
counsel of party.
f. Failure to Appeal or perfect appeal within 10-calendar day
reglementary period will make the Labor Arbiter’s decision final and
executory.
g. Date of mailing is date filing.
h. Receipt of one of two counsels is receipt by the party.
i. Effect of perfection of appeal-Labor Arbiter loses jurisdiction.
j. Lack of verification of the memorandum of appeal is not fatal nor
jurisdictional.
k. Failure to pay appeal docketing fee; not fatal to the validity of
appeal.
l. Submission of new or additional evidence on appeal may be allowed.
m. New issues or change of theory on appeal is not allowed.
• Reinstatement aspect of the Labor Arbiter’s decision.-It is
immediately executory even pending appeal. Such
54
awards does not require a writ of execution. The
employer is dutybound to inform employee of
reinstatement (either in the payroll or in the position
previously held or in a substantially equivalent position
of no longer available, at the position of the employer)).
The remedy if employer refuses if reinstate is contempt.
The posting of bond does not stay reinstatement.
• Appeal involving monetary awards.
a. No monetary award, no appeal bond required.
b. Cash or surety bond is required for perfection appeal from
monetary award.
c. Real property bond may be posted in the lieu of cash of surety
bond.
d. Bond should be posted within the 10-calendar day reglementary
period.
e. Award of moral and exemplary damages and attorney’s fees,
excluded from computation of bond.
f. If bond is not genuine, appeal is not perfected.
g. Non-posting of bond will not perfect the appeal.
h. Remedy of employee in case employer failed to post bond is to
file a motion to dismiss the appeal.
i. Motion to reduce bond may be granted only in meritorious cases
such as when the monetary claims had already prescribed.
j. The filing of a motion to reduce bond does not stop the running
of the period to perfect appeal.
• Appeal from NLRC decision.-None. The only way to
elevate the case to the Court of Appeals (no longer to the
Supreme Court) is through the original civil action for
certiorari under rule 65 of the 1997 Rules of civil
procedure. A motion for reconsideration of the NLRC’s
decision is a requisite prior to filing of certiorari petition.
• Period which to file certiorari petition-60 days reckoned
from the receipt by party of the denial of the Motion for
Reconsideration.
DECISIONS OF DOLE SECRETARY. Remedy is also a
petition for certiorari to the Court of Appeals (same rule as in
the case of NLRC).
DECISIONS VOLUNTARY ARBITRATORS. Remedy is appeal
(not a petition for certiorari) to the Court of Appeals.

NOTE: Book V Rules no longer allows a Motion for Reconsideration on

decisions rendered by the Voluntary
Arbitrators.

DECISION OF BUREAU OF LABOR RELATIONS. It depends.

If rendered in its original jurisdiction—appeal is to the DOLE
Secretary. If rendered in its appellate jurisdiction-a petition
for certiorari to the Court of Appeals is the correct recourse.

55