Labor Laws of The Philippines (P.D. 442) : MBA 113 By: Elva A. Aban

Labor Laws of the
Philippines (P.D. 442)

MBA 113
By: Elva A. Aban

Trivia
Birth of Labor Code:
Written in 1968 under the leadership of Mr. Blas Ople (father of the
Labor Code)
Labor Code took effect on November 1, 1974. The charter of
human rights and bill of obligation for every working man
Aim
To consolidate the scattered labor laws & reorient these laws to the
needs of economic development and justice.
Labor laws before the passage of the labor code
Act 1874 (Employers Liability Act)
Act 2549 prohibited payment of wages in non-cash form
RA 1054 required emergency medical treatment for employees
CA 444 (Eight hour labor law)
CA 103 created the Court of Industrial Relations (pre-NLRC)
PD 21 created the NLRC
RA 875 (The Industrial Peace Act/Magna Carta of Labor
RA 946 (Blue Sunday Law)
RA 1052 (Termination Pay Law)
Outline
Chapter 1: General Provisions
Chapter 2: Emancipation of Tenants
Book 1: Pre-Employment
Book 2: Human Resources Development
Book 3: Conditions of Employment
Book 4: Health, Safety and Social Welfare
Benefits
Book 5: Labor Relations
Book 6: Post Employment
Book 7: Penal Provisions, Prescriptions,
Transitory and Final Provisions
General Provisions
Article 1: Name of Decree.
Article 2: Date of Effectivity.
Article 3: Declaration of basic policy.
Article 4: Construction in favor of labor.
Article 5: Rules and regulations.
Article 6: Applicability.
Emancipation of Tenants
Article 7: Statement of Objectives.
Article 8: Transfer of lands to tenant
workers.
Article 9: Determination of land value.
Article 10: Conditions of ownership.
Article 11: Implementing agency.
Book 1: Pre-employment
Title 1: Recruitment of Placement of workers
Chapter 1: General Provisions Chapter 1: Regulation of Recruitment
Article 12: Statement of Objectives. and placement activities
Article 13: Definitions. Article 25: Private Sector participation in
Article 14: Employment Promotion. the recruitment and placement of
Article 15: Bureau of Employment workers.
Services. Article 26: Travel agencies prohibited to
Article 16: Private Recruitment. recruit.
Article 17: Overseas Employment Article 27: Citizenship requirement.
Development Board. Article 28: Capitalization.
Article 18: Ban on direct hiring. Article 29: Non-transferability of license or
Article 19: Office of Emigrant Affairs. authority.
Article 20: National Seaman board. Article 30: Registration fees.
Article 21: Foreign Service role and Article 31: Bonds.
participation. Article 32: Fees to be paid by workers.
Article 22: Mandatory remittance of Article 33: Reports on employment status.
foreign exchange earnings.
Article 34: Prohibited practices.
Article 23: Composition of the
boards. Article 35: Suspension and/or cancellation
of license or authority.
Article 24: Board to issue rules and
collect fees. Article 36: Regulatory Power.
Title 1: Recruitment and Placement of workers
Chapter 3: Miscellaneous Provisions

Article 37: Visitorial power.
Article 38: Illegal recruitment.
Article 39: Penalties.
Title 2: Employment of Non-Resident Aliens
Article 40: Employment permit for non-

resident aliens.
Article 41: Prohibition and penal sanctions.
Article 42: Submission of list.
Title 1: National Manpower Development Program
Chapter 1: National Policies and Administrative Machinery for their Implementation
Article 43: Statement of Objective.
Article 44: Definitions.
Article 45: National Manpower and Youth Council Composition.
Article 46: National Manpower Plan.
Article 47: National Manpower Skills Center.
Article 48: Establishment and formulation of skills standards.
Article 49: Administration of training programs.
Article 50: Industry boards.
Article 51: Employment service training functions.
Article 52: Incentive Scheme.
Article 53: Council Secretariat.
Article 54: Regional manpower development offices.
Article 55: Consultants and technical assistance, publication and
research.
Article 56: Rules and regulation.
Title 2: Training and Employment of Special Workers
Chapter 1: Apprenticeship
Article 57: Statement of Objective.
Article 58: Definition of Terms.
Article 59: Qualifications of Apprentice.
Article 60: Employment of Apprentices.
Article 61: Contents of apprenticeship agreements.
Article 62: Signing of apprenticeship agreement.
Article 63: Venue of apprenticeship program.
Article 64: Sponsoring of apprenticeship program.
Article 65: Investigation of violation of apprenticeship agreement.
Article 66: Appeal to the Secretary of Labor and Employment.
Article 67: Exhaustion of administrative remedies.
Article 68: Aptitude testing of applicants.
Article 69: Responsibility for theoretical instruction.
Article 70: Voluntary organization of apprenticeship program; exemptions.
Article 71: Deductibility of training costs.
Article 72: Apprentices without compensation.
Chapter 2: Learners
Article 73: Learners defined.

Article 74: When learners may be hired.
Article 75: Learnership agreement.
Article 76: Learners in piece work.
Article 77: Penalty cause.
Chapter 3: Handicapped workers
Article 78: Definition.

Article 79: When employable.
Article 80: Employment agreement.
Article 81: Eligibility for apprenticeship.
Title 1: Working Conditions and Rest periods
Chapter 1: Hours of work
Article 82: Coverage.

Article 83: Normal hours of work.
Article 84: Hours worked.
Article 85: Meal periods.
Article 86: Night shift differential.
Article 87: Overtime work.
Article 88: Undertime not offset be overtime.
Article 89: Emergency overtime work.
Article 90: Computation of additional
compensation.
Title 1: Working Conditions and Rest periods
Chapter 2: Weekly Rest Chapter 3: Holidays,

Periods Service Incentive leaves
Article 91: Right to and Service charges
weekly rest day. Article 94: Right to
Article 92: When holiday pay.
employer may require Article 95: Right to
work on a rest day. service incentive leave.
Article 93: Compensation Article 96: Service
for rest day, Sunday or charges.
holiday work.
Title 2: Wages
Chapter 1: Preliminary Chapter 2: Minimum

Matters Wage Rates
Article 97: Definitions. Article 99: Regional
Article 98: Application Minimum Wages.
of Title. Article 100: Prohibition
against elimination or
diminution of benefits.
Article 101: Payment by
results.
Title 2: Wages
Chapter 3: Payment Chapter 4:

of Wages Prohibitions regarding
Article 102: Forms of payment. wages
Article 103: Time of payment. Article 112: Non-interference in
Article 104: Place of payment. disposal of wages.
Article 105: Direct payment of Article 113: Wage deduction.
wages. Article 114: Deposits for loss or
Article 106: Contractor or sub- damage.
contractor. Article 115: Limitations.
Article 107: Indirect employer. Article 116: Withholding of
Article 108: Posting of bond. wages and kickbacks prohibited.
Article 109: Solidarity liability. Article 117: Deduction to ensure
employment.
Article 110: Worker preference
Article 118: Retaliatory
in case of bankruptcy.
measures.
Article 111: Attorneys fees Article 119: False reporting.
Title 2: Wages
Chapter 5: Wage studies, wage agreements and wage
determination
Article 120: Creation of the National wages and productivity
commission.
Article 121: Powers and functions of the commission.
Article 122: Creation of Regional tripartite wages and
productivity boards.
Article 123: Wage orders.
Article 124: Standards/Criteria for minimum wage fixing.
Article 125: Freedom to bargain.
Article 126: Prohibition against injunction.
Article 127: Non-diminution of benefits.
Chapter 6: Administration and enforcement
Article 128: Visitorial and enforcement power.
Article 129: Recovery of wages, simple money claims and other
benefits.
Title 3: Working conditions for special groups of employees
Chapter 1: Employment of Women

Article 130: Night work prohibition.
Article 131: Exceptions.
Article 132: Facilities for women.
Article 133: Maternity leave benefits.
Article 134: Family planning services; incentives for family
planning.
Article 135: Discrimination prohibited.
Article 136: Stipulation against marriage.
Article 137: Prohibited Acts.
Article 138: Classification of certain women workers.
Chapter 2: Employment of minors
Article 139: Minimum employable age.
Article 140: Prohibition against child discrimination.
Title 3: Working conditions for special groups of employees
Chapter 3: Employment of househelpers

Article 141: Coverage.
Article 142: Contract of domestic service.
Article 143: Minimum wage.
Article 144: Minimum cash wage.
Article 145: Assignment to non-household work.
Article 146: Opportunity for education.
Article 147: Treatment of househelpers.
Article 148: Board, lodging and medical attendance.
Article 149: Indemnity for unjust termination of services.
Article 150: Service of termination notice.
Article 151: Employment certification.
Article 152: Employment records.
Chapter 4: Employment of homeworkers
Article 153: Regulations of industrial homework.
Article 154: Regulations of Secretary of Labor and Employment.
Article 155: Distribution of homework.

Book 4: Health, Safety and Social Welfare Benefits
Title 1: Medical, Dental and Occupational Safety
Chapter 1: Medical and Dental Services

Article 156: First-aid treatment.
Article 157: Emergency medical and dental services.
Article 158: When emergency hospital not required.
Article 159: Health program.
Article 160: Qualifications of health personnel.
Article 161: Assistance of employer.
Chapter 2: Occupational health and safety
Article 162: Safety and health standards.
Article 163: Research.
Article 164: Training programs.
Article 165: Administration of safety and health laws.
Title 2: Employees Compensation and State Insurance Fund
Chapter 1: Policy and definition

Article 166: Policy.
Article 167: Definition of terms.
Chapter 2: Coverage and Liability
Article 168: Compulsory coverage.
Article 169: Foreign employment.
Article 170: Effective date of coverage.
Article 171: Registration.
Article 172: Limitation of liability.
Article 173: Extent of liability.
Article 174: Liability of third parties.
Article 175: Deprivation of benefits.
Chapter 3: Administration
Article 176: Employees Compensation Commission.
Article 177: Power and duties.
Article 178: Management of funds.
Article 179: Investment of funds.
Article 180: Settlement of claims.
Article 181: Review.
Article 182: Enforcement of decisions.
Chapter 4: Contributions
Article 183: Employers Contribution.
Article 184: Government guarantee.
Chapter 5: Medical benefits

Article 185: Medical services.
Article 186: Liability.
Article 187: Attending physician.
Article 188: Refusal of examination or treatment.
Article 189: Fees and other charges.
Article 190: Rehabilitation services.
Chapter 6: Disability benefits
Article 191: Temporary total disability.
Article 192: Permanent total disability.
Article 193: Permanent partial disability.
Chapter 7: Death Chapter 8: Provisions

benefits common to income
Article 194. Death benefits
Article 195: Relationship and
dependency
Article 196: Delinquent
contributions
Article 197: Second injuries
Article 198: Assignment of
benefits
Article 199: Earned benefits
Article 200: Safety devices
Article 201: Prescriptive period
Article 202: Erroneous payment
Article 203: Prohibition
Article 204: Exemption from levy,
tax, etc.
Chapter 9: Records, Reports and Penal Provisions
Article 205. Records of death or disability

Article 206. Notice of sickness, injury or death
Article 207. Penal Provisions
Article 208. Applicability
Article 208-a. Repeal of laws
Title 3: Medicare
Article 209: Medical care
Title 4: Adult Education
Article 210: Adult education
Title 1: Policy and Definitions
Chapter 1 Policy Chapter 2 Definitions

Article 211: Declaration Article 212: Definitions
of policy
Title 2: National Labor Relations Commission
Chapter 1 Creation Chapter 2 Powers ad

and Composition Duties
Article 213: National Article 217: Jurisdiction of
Labor Relations labor arbiters and the
commission
Commission
Article 218: Powers of the
Article 214: commission
Headquarters, Article 219: Ocular
branches and inspection
provincial extension Article 220: Compulsory
units Arbitrators
Article 215: Article 221: Technical
Appointment and rules not binding and
qualifications prior resort to amicable
Article 216: Salaries, settlement
benefits and other Article 222: Appearances
emoluments and Fees
Title 2: National Labor Relations Commission
Chapter 3 Appeal
Article 223: Appeal
Article 224: Execution of decisions, orders, or awards
Article 225: Contempt powers of the Secretary of Labor and
Employment
Title 3: Bureau of Labor Relations
Article 226: Bureau of Labor Relations

Article 227: Compromise Agreements
Article 228: Indorsement of case to labor
arbiters
Article 229: Issuance of subpoenas
Article 230: Appointment of bureau personnel
Article 231: Registry of unions and file of
collective argreements
Article 232: Prohibition on certification election
Article 233: Privileged communication
Title 4: Labor Organizations
Chapter 1: Registration and Cancellation
Article 234: Requirements of registration
Article 235: Action on application
Article 236: Denial of registration; appeal
Article 237: Additional requirements for federations or
national unions
Article 238: Conditions for registration of federations or
national unions
Cancellation of registration, appeal
Article 239: Grounds for cancellation of union
registration
Article 240: Equity of the incumbent
Title 4: Labor Organizations
Chapter 2: Rights and conditions of membership

Article 241: Rights and condition of membership in a labor
organization
Chapter 3: Rights of legitimate labor
organizations
Article 242: Rights of legitimate labor organizations
Title 5: Coverage Title 6: Unfair Labor
Article 243. Coverage and Practices
employees right to self- Chapter 1 Concept
organization Article 247. Concept of unfair
Article 244. Right of labor practice and procedure
of prosecution thereof
employees in the public
service Chapter 2 Unfair labor
practices of employers
Article 245. Ineligibility of
Article 248. Unfair labor
managerial employees to practices of employers
join any labor organizations;
Chapter 3 Unfair labor
right of supervisory
practices of labor
employees
organizations
Article 246. Non- Article 249. Unfair labor
abridgement of right to self- practices of labor
organization organizations
Title 7: Collective Article 254. Terms of a
collective bargaining
bargaining and agreement
administration agreements Article 255. Exclusive
Article 250. Procedure in bargaining representation and
collective bargaining workers participation in policy
Article 251. Duty to bargain and decision-making
collectively in the absence of Article 256. Representation
collective bargaining issue in organized
agreements establishments
Article 252. Meaning of duty to Article 257. Petitions in
bargain collectively unorganized establishments
Article 253. Duty to bargain Article 258. When an employer
collectively when there exists may file petition.
a collective bargaining Article 259. Appeal from
agreement certification election orders
Article 253-A. Terms of a
collective bargaining
agreement
Title 7-A: Grievance Machinery and Voluntary Arbitration
Article 260. Grievance machinery and voluntary arbitration
Article 261. Jurisdiction of voluntary arbitrators and panel of voluntary
arbitrators
Article 262. Jurisdiction over the labor disputes
Article 262-A. Procedures
Article 262-B. Cost of voluntary arbitration and voluntary arbitrators
fee
Title 8: Strikes and Lockouts and Foreign Involvement in
Trade Union Activities
Chapter 1 Strikes and lockouts
Article 263. Strikes, picketing and lockouts
Article 264. Prohibited activities
Article 265. Improved offer balloting
Article 266. Requirement for arrest and detention
Chapter 2 Assistance to labor organizations

Article 267. Assistance by the Department of labor and employment
Article 268. Assistance by the Institute for labor studies
Chapter 3 Foreign activities

Article 269. Prohibition against aliens; exceptions
Article 270. Regulation of foreign assistance
Article 270-A. Meaning of trade union activities
Article 271. Applicability to farm tenants and rural workers.
Chapter 4 Penalties for violation

Article 272. Penalties
Title 9: Special Provisions
Article 273. Study of labor-management relations
Article 274. Visitorial power
Article 275. Tripartism and tripartite conferences
Article 276. Government employees
Article 277. Miscellaneous provisions
Book 6: Post Employment
Title 1: Termination of Employment
Article 278. Coverage
Article 279. Security of Tenure
Article 280. Regular and Casual employment
Article 281. Probationary employment
Article 282. Termination by employer
Article 283. Closure of establishment and reduction of personnel
Article 284. Disease as ground for termination
Article 285. Termination by employee
Article 286. When employment not deemed terminated
Title 2: Retirement from the service
Article 287. Retirement
Title 1: Penal provisions and liabilities
Article 288. Penalties
Article 289. Who are liable when committed by other than natural
person
Title 2: Prescription of offenses and claims
Article 290. Offenses
Article 291. Money Claims
Article 292. Institution of money claims
Title 3: Transitory and Final Provisions
Article 293. Application of law enacted prior to this code
Article 294. Secretary of labor and employment to initiate
integration of maternity leave benefits
Article 295. Funding of the overseas employment development
board and the national seamen board
Article 296. Termination of the workmens compensation program
Title 3: Transitory and Final Provisions

Article 297. Continuation of insurance policies and indemnity
bonds
Article 298. Abolition of the Court of Industrial Relations and the
National Labor Relations Commission
Article 299. Disposition of pending cases
Article 300. Personnel whose services are terminated
Article 301. Separability provisions
Article 302. Repealing clause
Article 1: Name of Decree. This decree
shall be known as Labor Code of the
Philippines
A decree instituting a labor code, thereby
revising and consolidating labor and social
laws to
Afford protection to labor
Promote employment and human resources
development
Ensure industrial peace based on social justice
home
Article 2: Date of effectivity. This code shall take effect six (6) months after
its promulgation.
Article 3: Declaration of its policy. 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 self-organization,
collective bargaining, security of tenure, and just and humane conditions of
work.
Article 4: Construction in favor of labor. All doubts in the implementation
and interpretation of the provisions of this Code, including its implementing
rules and regulations, shall be resolved in favor of labor.
Article 5: Rules and Regulations. The Department of Labor and other
government agencies charged with the administration and enforcement of this
Code or any of its parts shall promulgate the necessary implementing rules and
regulations. Such rules and regulations shall become effective fifteen (15) days
after announcement of their adoption in newspapers of general circulation.
Article 6: Applicability. All rights and benefits granted to workers under this
Code shall, except as may otherwise be provided herein, apply alike to all
workers, whether agricultural or non-agricultural. (As amended by Presidential
Decree No. 570-A, November 1, 1974).
Discussion:
Labor Law/Legislation is broadly divided into labor standards and labor
relations
Labor Standards sets out the minimum terms, conditions and benefits of
employment that employers must comply with minimum requirement required by law
and regulations relating to wages, hours of work, COLA, and other monetary welfare
benefits including occupational safety and health standards i.e. under (1) Book 1 (pre-
employment, (2) Book 2 (human resources development program , (3) Book 3
(conditions of employment), and (4) Book 4 (health, safety & social welfare benefits) of
the labor code.
Labor Relations defines the status, rights and duties and the institutional
mechanisms that govern the individual and collective interactions of employers ,
employees, or their representatives i.e. under (1) Book 5 (labor relations) and (2) Book
6 (post employment)
7 PRINCIPLES UNDERLYING THIS CODE
Constitutional provisions related to labor Must be both responsive and responsible to national
Art II Sec 9, 10, 18 development
Art III Sec 8 Must substitute rationality for confrontation in times of
Art VI national emergencies
Art IX-B, Sec 2[3],[5] and [6] Must be made expeditious without sacrificing due process
Manpower development and employment must be
Art XII Sec 1, 15
regarded as a major dimension of labor policy
Art XIII Sec 3, 4, 5, 6, 9, 14
Avaiialbility of a global labor market to qualified Filipinos
Art XVIII Sec 16, 18 Must command adequate resources and acquire capable
machinery for effective and sustained implementation
There should be popular participation in national policy
making through what is now called tripartism
Discussion:
Seven basic rights of workers guaranteed by the Constitution; (1) right to organize, (2) to
conduct collective bargaining or negotiation with management, (3) to engage in peaceful
concerted activities, including strike in accordance with law, (4) to enjoy security of tenure,
(5) to work under humane conditions, (6) to receive a living wage, (7) to participate in
policy and decision-making processes affecting their rights and benefits as may be provided
by law.
The constitution suggests shared responsibility between workers and employers
i.e. the constitutional principle of shared responsibility (balancing rights)
While labor is entitled to a just share in the fruits of production, the enterprise has an equally important
right not only to reasonable returns in investment but also to expansion and growth. The Constitution
commands the State to promote the principle of shared responsibility between employers and workers
and the preferential use of voluntary modes of settling disputes, including conciliation, and to enforce
their mutual compliance therewith to foster industrial peace.
Police Powers as basis of of the labor laws
The right of every person to pursue a business, occupation or profession is subject to the paramount
right of the government as a part of its police power to impose such restrictions and regulations as the
protection of the public may require.
Art. 4. Construction in favor of labor
When the interest of labor and capital collide, the heavier influence of capital should be
counterbalanced with the sympathy and compassion of law for the less privileged workers.
But protection to labor does not mean oppression or destruction of capital. The employers
act will be sustained when it is in the right. [Eastern Shipping Lines v. POEA, 166 SCRA 523
(1998)]
Discussion:
Art. 4. Construction in favor of labor
Court decisions adopt a liberal approach that favors the exercise of labor rights. The
mandate is simply to resolve doubt in favor of labor. If there is no doubt in implementing
and interpreting the law, labor will enjoy no built-in advantage and the law will have to be
applied as it is.
When the subject matter is covered by the Labor Code, doubts which involve
implementation and interpretation of labor laws should be resolved in favor of labor, even if
the question involves Rules of Evidence.
Management Rights / Prerogative except as limited by special laws, an employer is free
to regulate, according to his own discretion and judgment, all aspects of employment, including
hiring, work assignments, working methods, time, place and manner of work, tools to be used,
processes to be followed, supervision of workers, working regulations, transfer of employees,
work supervision, lay-off of workers and the discipline, dismissal and recall of workers
Art 5. Rules and Regulation
If promulgated in excess of its rule making power, the resulting rule or regulation is void or
invalid
DOLE (Department of Labor and Employment), the lead agency in enforcing labor laws and
it possesses rule-making power
Art 6. Applicability
Government Corporations incorporated under the corporation code e.g. PNOC-EDC, FTI,NHA
Not applicable to government agencies or instrumentalities
Chapter 2: Emancipation of Tenants
Objective: to start reformation with the emancipation of the tiller of the soil from his
bondage due to grievances that gave rise to violent conflict and social tension
Department of Agrarian Reform will be the implementing agency to promulgate the
necessary rules and regulations to implement the provisions of this chapter.
History
There is an acute imbalance in the distribution of land among our people. Hence, the
Constitution of 1987 adopted a whole article containing provisions for the uplift of the common
people, thus: The State shall, by law, undertake an agrarian reform program founded on the
right of farmers and regular farmworkers, who are landless, to own directly or collectively the
land they till or, in the case of other farmworkers, to receive a just share of the fruits thereof.
Share Tenancy abolished
RA 3844 abolished and outlawed share tenancy and put in its stead the agricultural leasehold
system
RA 6389, amending RA 3844, declared share tenancy as contrary to law and public policy
The phasing out of share tenancy was the first step towards the ultimate status of owner-
cultivator, a goal sought to be achieved by the government program of agrarian reform
Retention limits: in no case shall retention by the landowner exceed 5 hectares if not irrigated
and 3 hectares if irrigated. If the landowner is cultivating or will now cultivate the land, the
landowner may retain an area of not more than seven hectares
Lands not covered
Obtained through homestead patent the Constitution respects the superiority of the
homesteaders rights over the rights of the tenants
Residential subdivisions
Livestock, poultry and swine raising lands
Purpose: To regulate the activities of agencies authorized to recruit and deploy
workers for overseas employment
The Philippines has the highest
unemployment rate among members of
the Association of Southeast Asian
Nations (Asean), according to a report
of the International Labor Organization
(ILO) published in 2014.
The Philippines registered an
unemployment rate of 7.3 percent as of
2013, according to the Global
Employment Trends.
DOLEs responsibility
The promotion of gainful employment opportunities and the optimization of the development and
utilization of the countrys manpower resources
The advancement of workers welfare by providing for just and humane working conditions and terms
of employment
The maintenance of industrial peace by promoting harmonious, equitable and employment relations
that assure protection for the rights of all concerned parties
B1T1: Recruitment and Placement of workers
Art 14: To pursue its responsibility to promote employment opportunities, the
DOLE carries out programs for local and overseas employment.
Art 15: Local employment. The bureau of employment services has been
replaced by the bureau of local employment (BLE) through EO 797 (May 1,
1982
PESO (Public Employment Service Office), intended to serve as employment service and
information center in its area of operation. It regularly obtains a list of job vacancies from
employers, publicizes them, invites and evaluates applicants, and refers them for probable hiring.
This office also holds special service for the public such as employment bazaars, etc.
Art 16: Entities authorized to recruit and place workers for local or overseas
employment: (1) public employment offices, (2) private recruitment entities, (3) private
employment agencies, (4) shipping or manning agents or representatives, (5) POEA, (6) Construction
contractors if authorized to operate by DOLE and the Construction Industry Authority, (7) members of
the diplomatic corps although hirings done by them have to be processed through the POEA and (8)
other persons or entities as may be authorized by the DOLE Secretary
Art 17: Overseas Employment Development Board (OEDB).
The powers and functions of OEDB were taken over by POEA. The POEA composition: governing
board (Sec. of DOLE as chariman, Administrator, 3rd member (appointed by President for a term
of 2years)), office of the (a) administrator, (b) deputy administrator, (c) directors.
POEA functions and power: (1) formulation, implementation, and monitoring of the overseas
employment of Filipino workers and the protection of their rights to fair and equitable employment
practices, (2) participates in the deployment of Filipino workers through government-to-
government hiring, (3) regulatory function (4) adjudicatory function
Recruitment and Placement any act of
(CETCHUP) canvassing, enlisting, transporting,
contracting, hiring, utilizing or procuring
workers and includes (CRAP) contract services,
referrals, advertising for employment,
promising for employment locally or abroad,
whether for profit or not: Provided, that any
person or entity, which, in any manner, offers
or promises for a fee, employment to two or
more persons shall be deemed engaged in
recruitment and placement
Art 38 Illegal recruitment any recruitment
activities, including those practices under
article 34, to be undertaken by non-licenses or
non-holders of authority, shall be deemed
illegal and punishable under Art 39. DOLE or
any law enforcement officer may initiate
complaints.
Proof of illegal recruitment
There are 11 prohibited practices under article 34.
Is direct-hiring of OFWs allowed? Why? No. Employers cannot directly hire workers for overseas
employment except through authorized entities see (enumeration above). The reason for the ban is to
ensure full regulation of employment in order to avoid exploitation.
Fees to be Paid by Workers:
No worker shall be charged with any fee until employee: (1) obtained work through recruiters
efforts; and (2) worker has actually commenced working.
Placement fee in an amount equivalent to one months salary of the worker and documentation
costs are the ONLY AUTHORIZED PAYMENTS that may be collected from a hired worker.
Contracts
Minimum Provisions for Contract
Guaranteed wages, for regular working hours and overtime pay for services rendered beyond regular work
hours in accordance with the standards established by the Administration
Free transportation from point of hire to site of and facilities
Free emergency medical and dental treatment and facilities
Just causes for the termination of the contract or of the services of the workers
Workmens compensation benefits and war hazard protection
Repatriation of workers remains and properties in case of death to the point of hire, or if this is not possible
under the circumstances, the proper disposition thereof, upon prior arrangement with the workers next-of-
kin and the nearest Embassy or Consulate through the Office of the Labor Attache
Assistance in the remittance of workers salaries, allowances or allotments to his beneficiaries
Free and adequate lodging facilities or compensatory food allowance at prevailing cost of living standards at
the jobsite
B1T2: Employment of Non-resident Aliens
Requisites for Employment of Non-Resident Aliens
working permit from DOLE
certification that there is no available Filipino willing and competent to do the job for the employer
alien must train at least two Filipino understudies for such undertaking
FOR ENTERPRISES REGISTERED IN PREFERRED AREAS OF INVESTMENT employment permit issued upon
recommendation of government agency charged with the supervision of said registered enterprise
Exemption from Permit

All members of Diplomatic Services and foreign government officials accredited with the Phil. Government
Members of international organizations with which the Phil. Government is a cooperating member (i.e. ADB, IRRI)
Missionaries actually engaged in missionary work
All aliens granted exemption by special laws and all those whose employment in the Phil. Have been determined
by the Sec. of Labor to be beneficial to national interest.
Duration of Permit
Valid for 1 year from date of issuance, unless sooner revoked by the Secretary of Labor
Renewable upon showing of good cause Non-transferable
Other Prohibitions
Aliens shall not transfer to another job or change his employer without prior approval of the secretary of labor
Non-resident alien shall not take up employment in violation of the provisions of the Code.
B2T1-T2: National Manpower Development Program |
Training and Employment of special workers
GOVERNMENT MACHINERY
Articles 43-56 pertaining to National Manpower and Youth Council
has been replaced and absorbed by the TESDA(Technical Education
and Skills Development Authority) created under RA7796 which was
approved on August 25, 1994
Policy.
It is the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills
development, in support of the development of high-quality
Filipino middle-level manpower responsive to and in
accordance with Philippine development goals and priorities
Power and Functions of POEA
Responsible for formulating, continuing, coordinating, and fully
integrating technical education and skills development policies,
plans and programs
APPRENTICESHIP and LEADERSHIP
Similarity: both mean training periods for jobs requiring skills that
can be acquired through actual work experience
An apprenticeship program need prior approval by the DOLE. If
employed without pre-approved apprenticeship program, the
apprentice is not an apprentice but a regular employee. (Nitto
Ent. Vs NLRC, GR 114337)
Procedure in case of violation of apprenticeship contract: (1)
investigation (2) appeal to the Secretary of Labor
B2T1-T2: National Manpower Development Program |
Training and Employment of special workers
HANDICAPPED WORKERS
Art 78. Definition. Handicapped workers are those whose earning capacity is impaired by age, or physical
or metal deficiency or injury.
Art 79. When employable.
Handicapped workers may be employed when (a) their employment is necessary to prevent
curtailment of employment opportunities; and (b) it does not create unfair competition in labor
costs or impair or lower working standards.
Art 80. Employment Agreement.
Any employer who employs handicapped workers shall enter into an employment agreement with
them, which agreement shall include: (a) the names and addresses of the handicapped workers to
be employed; (b) the rate to be paid the handicapped workers to be employed which shall be not
less than seventy-five(75%) percent of the applicable legal minimum wage; (c) the duration of the
employment period; and (d) the work to be performed by the handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his duly
authorized representative.
Art 81. Eligibility for Apprenticeship
Subject to the appropriate provisions of this Code, handicapped workers may be hired as
apprentices or learners if their handicap is not such as to effectively impede the performance of job
operations in the particular occupations for which they are hired.
Magna Carta for Disabled Persons (RA No 7277, March 24, 1992) insures equal opportunities for
disabled persons and prohibits discrimination against them.
B3T1: Working Conditions and Rest Periods
Coverage
Book III of the Labor Code provides the conditions or standards of employment. These standards apply
only if there exists EER.
EER (Employee-Employer Relationship) must exist and their existence is determined by law, not by
contract.
Elements of employment relationship (4-fold test): (1) selection and engagement of the employee
(2) payment of wages (3) power of dismissal (4) employers power to control the employee with
respect to the means and methods by which the work is to be accomplished
The provisions of this Title shall apply to employees in all establishments and undertakings whether for
profit or not, but not to government employees, managerial employees, field personnel, members of the
family of the employer who are dependent on him for support, domestic helpers, persons in the personal
service of another, and workers who are paid by results as determined by the Secretary of Labor in
appropriate regulations.
Managerial Employees refer to those whose primary duty consists of the management of the
establishment in which they are employed or of a department or subdivision thereof, and to other
officers or members of the managerial staff
Field Personnel non-agricultural employees who regularly perform their duties away from the
principal place of business or branch office of the employer and whose actual hours of work in the field
cannot be determined with reasonable certainty
Hours of Work
Work hours shall not exceed 8. Thus, part-time work, or a days work of less than 8 hours, not
prohibited.
Purpose: (a) protect the health of the workers (b) assure adequate leisure to workers in order to enable
them to lead richer and more fruitful lives (c) spread employment
Work Day 24-hr period commencing from the time an employee regularly starts to work regardless of
whether the work is broken or continuous
Calendar Day 24-hr. period commencing at 1 midnight and ending at 11:59 p.m.
Compressed Work Week (CWW)
a. Resorted to by the employer to prevent serious losses due to causes beyond his control, such as when
there is substantial slump in demand for his goods and services or when there is lack of raw materials.
b. Instead of working 6 days a week, the employees will be regularly working for less than 6 days but each
workday exceeds 8 hrs. For the hours exceeding 8 in a workday, the employees waive their OT pay because,
in return, they will no longer incur transport and other expenses.
c. Allowed on condition that it is freely agreed upon between the employer and majority of the employees.
Further, the arrangement should not diminish the employees monthly or daily pay or their established
employment benefits.
d. Extended workday in CWW should not exceed 12 hrs. Work exceeding 12 hrs. in a day or 48 hrs. in a
week should be considered OT.
e. Should the work shift revert to 8 hrs., the reversion shall not constitute a diminution of benefits.
Principles in Determining Hours Worked
(1). All hours are hours worked which the employee is required to give to his employer,
regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion
(2). An employee need not leave the premises of the workplace in order that his rest period shall not be
counted, it being enough that he stops working, may rest completely and may leave his workplace (3). If the
work performed was necessary or it benefited the employer, or the employee could not abandon his work at
the end of his normal working hours because he had no replacement, all time spent or such work shall be
considered as hours worked, if the work was with the knowledge of his employer or immediate supervisor.
(4). The time during which an employee is inactive by reason of interruptions in his work beyond his control
shall be considered working time either if a. the imminence of the resumption of work requires the
employee's presence at the place of work; or b. if the interval is too brief to be utilized effectively and
gainfully in the employee's own interest.
Lectures, Meeting, Trainings, Programs NOT considered working time if ALL the following conditions
are met: 1. Attendance is outside of the employee's regular working hours 2. Attendance is in fact voluntary
3. The employee does not perform any productive work during such attendance.
Meal and Rest Periods not less than 1 hour time-off for regular meals non-compensable
Except: meal period of not less than 20 mins. in the following cases are compensable hours worked:
1. Where the work is non-manual work in nature or does not involve strenuous physical exertion
2. Where the establishment regularly operates not less than 16 hours a day
3. In case of actual or impending emergencies or there is urgent work to be performed on machineries,
equipment or installations to avoid serious loss which the employer would otherwise suffer
4. Where the work is necessary to prevent serious loss of perishable goods
Rest periods or coffee breaks running from 5 to 20 mins. considered as compensable working time.
To shorten meal time to less than 20 mins, is not allowed. If the so-called meal time is less than
20 mins., it becomes only a rest period.
Overtime Pay (OT) work exceeding eight hours within the workers 24-hour workday. Work within the
Eees shift is not overtime. (1) OT on a Regular Day: regular wage + at least 25% thereof (2) OT on a
Holiday/Eees Rest Day: rate of 1st 8 hrs. on holiday/rest day + at least 30% thereof. (3) Since the OT
work is considered hourly, the pay rate is computed also on per hour basis. The daily wage is divided by
8 to get the hourly base rate. (4) If employee is paid on a monthly salary basis, the daily rate is obtained
by the following formula:
Daily Rate = monthly salary x 12________
Total no of days considered paid in a year
(5) Permissible for the employer to stipulate that the employees monthly salary constitutes payment for all
the days of the month, including rest days and holidays, where the employees monthly salary, when
converted by the increased divisor into its daily equivalent, would still meet minimum wage.
Regular Wage includes the cash wage only, without deduction on account of facilities provided by the
employer
Conditions to be entitled to OT pay: 1. Actual rendition of OT work 2. Submission of sufficient proof that
said work was actually performed 3. OT work is with the knowledge and consent of the employer
Compulsory OT Work (provided employee paid the additional compensation required)
1. Country at war/National or Local Emergency
2. Completion of work started before the 8th hour
and is necessary to prevent serious obstruction
or prejudice to the business
3. Urgent work to be performed on Machines to
avoid serious loss or damage to employer
4. Necessary to Prevent loss of life/property or
Imminent danger to public safety
5. Necessary to prevent loss or damage to
perishable goods
6. Necessary to avail of favorable weather or
environmental condition
Undertime NOT Offset by OT an employeesregular pay rate is lower than the OT rate. Offsetting the
undertime hours against the OT hours would result in undue deprivation of the employees extra pay for OT
work.
Right to OT pay cannot be waived. But when the alleged waiver of OT pay is in consideration of
benefits and privileges which may even exceed the OT pay, the waiver may be permitted.
Night Shift Differential (NSD) every employee shall be paid a night shift differential of not less
than 10% of his regular wage for each hour of work performed between ten oclock in the evening and
six oclock in the morning.
NSD = (10% x regular wage/hr.) x no. of hrs. of work between 10 pm 6 am
If work done between 10 pm and 6 am is OT work, the NSD should be based on the OT rate.
Employees NOT Covered by NSD
1. Those of the government and any of its political
subdivisions, including government-owned and/or
controlled corporations
2. Those of retail and service establishments
regularly employing not more than 5 workers
3. Domestic helpers and persons in the personal
service of another
4. Managerial employees
5. Field personnel and other employees whose time
and performance is unsupervised by the
employer including those who are engaged on
task or contract basis, purely commission basis,
or those who are paid a fixed amount for
performing work irrespective of the time
consumed in the performance thereof
REST PERIODS AND HOLIDAYS
Weekly Rest Periods applies to all employers whether operating for profit or not, including public
utilities operated by private persons
Business on Sundays/Holidays All establishments and enterprises may operate or open for
business on Sundays and holidays provided that the employees are given the weekly rest day and the
benefits as provided.
Weekly Rest Day Every employer shall give his employees a rest period of not less than 24
consecutive hrs. after every 6 consecutive normal work days.
Preference of employee The preference of the employee as to his weekly day of rest shall be
respected by the employer if the same is based on religious grounds.
The employee shall make known his preference to the employer in writing at least 7 days before the
desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious grounds will
inevitably result in serious prejudice or obstruction to the operations of the undertaking and the
employer cannot normally be expected to resort to other remedial measures, the employer may so
schedule the weekly rest day of his choice for at least 2 days in a month.
Schedule of Rest Day
a. Where the weekly rest is given to all employees simultaneously the employer shall make known
such rest period by means of a written notice posted conspicuously in the work place at least one week
before it becomes effective
b. Where the rest period is not granted to all employees simultaneously and collectively the employer
shall make known to the employees their respective schedules of weekly rest through written notices
posted conspicuously in the work place at least one week before they become effective
Work on Rest Day Authorized (UAAP NAF)
1. In case of urgent work to be performed on machineries, equipment or installations to avoid serious
loss which the employer would otherwise suffer
2. In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity, to prevent loss of life or property, or in cases of
force majeure or imminent danger to public safety
3. In the event of abnormal pressure of work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measures
4. To prevent serious loss of perishable goods
5. Where the nature of the work is such that the employees have to work continuously for 7 days in a
week or more, as in the case of the crew members of a vessel to complete a voyage and in other similar
cases
6. Under other analogous or similar circumstances
7. When the work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
**Other than the above circumstances, no employee shall be required against his will to work on his
scheduled rest day.
** When an employee volunteers to work on his rest day under other circumstances, he shall express such
desire in writing, subject to payment of additional compensation.
** An employee shall be entitled additional compensation for work performed on a Sunday only when it is his
established rest day.
Holidays with Pay; Applies to ALL employees.
EXCEPT:
1. Those of the government and any of the political subdivision, including government-owned and
controlled corporation
2. Those of retail and service establishments regularly employing less than ten 10 workers
3. Domestic helpers and persons in the personal service of another
5. Field personnel and other employees whose time and performance is unsupervised by the employer
including those who are engaged on task or contract basis, purely commission basis, or those who are
paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.
Absences
Employee on Leave of absence with pay entitled to the benefit provided herein
Employee on leave of absence without pay on the day immediately preceding a regular holiday
may not be paid the required holiday pay if he has not worked on such regular holiday
Where the day immediately preceding the holiday is a non-working day in the establishment or the
scheduled rest day of the employee, he shall not be deemed to be on leave of absence on that day, in
which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the
non-working day or rest day
Temporary or Periodic Shutdown and Temporary Cessation of Work (i.e. yearly inventory, repair
or cleaning of machineries or equipment, etc) regular holidays falling within this period compensable
Temporary or Periodic Shutdown and Temporary Cessation of Work Due to Business
Reverses employer may not pay the regular holidays during this period
Holiday Pay of Certain Employees
1. Private School teachers including faculty members of college and universities may not
be paid for the regular holidays during semestral vacations. Paid for the regular holidays during
Christmas vacation
2. Employee paid by results (payment on piecework) holiday pay shall not be less than his
average daily earnings for the last 7 actual working days preceding the regular holiday; Provided,
However, that in no case shall the holiday pay be less than the applicable statutory minimum wage rate
3. Seasonal workers may not be paid the required holiday pay during off-season when they are not
at work
4. Workers without regular working days entitled to the benefits
Double Holiday an employee who is entitled to holiday pay should receive at least 200% of his basic
wage even if he did not work on that day, provided, he was present or on leave wit pay on the preceding
work day. If he worked, he is entitled to 300% of his basic wage.
Holiday-Sunday a legal holiday falling on a Sunday creates no legal obligation for the employer to
pay extra, aside from the usual holiday pay, to its monthly-paid employees
Successive Regular Holidays Where there are 2 successive regular holidays, like Holy Thursday and
Good Friday, an employee may not be paid for both holidays if he absents himself from work on the day
immediately preceding the first holiday, unless he works on the first holiday, in which case he is entitled
to his holiday pay on the second holiday. To be entitled to 2 successive holidays, employee must: (1) be
present on the day immediately preceding the 1st holiday; or (2) be on leave wit pay.
Service Incentive Leave (SIL) every employee who has rendered
at least 1 year of service shall be entitled to a yearly service incentive
leave of 5 days with pay
Commutable to its money equivalent if not used or exhausted at
the end of the year.
At least 1 year service service for not less than 12 months,
whether continuous or broken reckoned from the date the employee
started working, including authorized absences and paid regular
holidays unless the working days in the establishment as a matter of
practice or policy, or that provided in the employment contract is less
than 12 months, in which case said period shall be considered as one
year
Employees NOT Covered
1. Those of the government and any of its political subdivisions,
including government-owned and controlled corporations
2. Domestic helpers and persons in the personal service of another
4. Field personnel and other employees whose performance is
unsupervised by the employer including those who are engaged on
task or contract basis, purely commission basis, or those who are paid
a fixed amount for performing work irrespective of the time consumed
in the performance thereof
5. Those who are already enjoying the benefit herein provided
6. Those enjoying vacation leave with pay of at least five days
7. Those employed in establishments regularly employing less than ten
employees
Service Charges apply only to establishments collecting service charges such as hotels, restaurants,
lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and
similar enterprises, including those entities operating primarily as private subsidiaries of the Government
Employees Covered all employees of covered employers, regardless of their positions, designations
or employment status, and irrespective of the method by which their wages are paid EXCEPT to
managerial employees
Distribution
85% distributed equally among the covered employees
15% for the disposition by management to answer for losses and breakages and distribution to
managerial employees at the discretion of the management in the latter case
distributed and paid to the employees not less than once every 2 weeks or twice a month at
intervals not exceeding 16 days
OTHERS
Vacation Leave (VL) / Sick Leave (SL) not required by law and depends on voluntary employer
policy or collective bargaining.
Solo Parent Leave (RA 8972: Solo Parents Welfare Act of 2000) a parental leave of not more
than 7 working days every years shall be granted to any solo parent employee who has rendered service
of at least 1 year
Solo Parent woman who gives birth as a result of rape or crimes against chastity, a widow or widower, a spouse
separated legally or de facto for at least one year, and so forth. The claimant parent has to show that he/she is left
alone with the responsibility of parenthood.
Leave under RA 9262 (Anti-Violence Against Women and their Children Act of 2004) allows
the victim of violence, which may be physical, sexual, or psychological, to apply for the issuance of a
protection order. If such victim is an employee, she is entitled to a paid leave of up to 10 days in addition
to other paid leaves under the Labor Code, other law and company policies.
The employee has to submit a certification from the Punong Barangay or Kagawad or prosecutor or Clerk of Court
that an action under RA 9262 has been filed and is pending.
B3T2: Wages
Concept and Definition
Agriculture includes farming in all its branches and, among other things, includes cultivation and tillage
of soil, dairying, the production, cultivation, growing and harvesting of any agricultural and horticultural
commodities, the raising of livestock or poultry, and any practices performed by a farmer on a farm as an
incident to or in conjunction with such farming operations, but does not include the manufacturing or
processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products
Wage paid to any employee shall mean the: 1. remuneration or earnings, however designated, 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, which 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 includes 2. the fair and reasonable value, as determined by the DOLE Secretary, 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.
Fair Wage for Fair Work; No Work No Pay Principle if there is no work performed by the
employee, there can be no wage or pay unless the laborer was able, willing, and ready to work but was
prevented by management or was illegally locked out, suspended or dismissed. But where the failure of
employees to work was not due to the employers fault, the burden of economic loss suffered by the
employees. Should not be shifted to the employer. Each party must bear his own loss.
Equal Pay for Equal Work persons who work with substantially equal qualifications, skill, effort and
responsibility, under similar conditions, should be paid similar salaries.
Employees NOT Covered by Provisions on Wages: 1. farm tenancy / leasehold 2. domestic service 3.
persons working in their respective homes in needle work or in any cottage industry duly registered in
accordance with law 4. Barangay micro business enterprise (BMBE) under RA 9178, the BMBE Law. BMBE
any business entity or enterprise engaged in th production, processing, or manufacturing of products or
commodities, including agroprocessing, trading and services, whose total assets including those arising from
loans but exclusive of the land on which the particular business entitys office, plant and equipment are
situated, shall not be more than P3M
B3T2: Wages
WAGE-FIXING
Regional Minimum Wages the minimum wage rates for agricultural and non-agricultural employees
and workers in each and every region of the country shall be those prescribed by the Regional Tripartite
Wages and Productivity Boards
Minimum Wage lowest wage rate fixed by law that an employer can pay his employee; payment of
minimum wages is not dependent on the employers ability to pay
Daily-Paid Employee paid only for days he actually worked
Monthly-Paid Employee employees paid by the month, irrespective of the number of working days
therein, with a salary of not less than the statutory or established minimum wage, shall be presumed to be
paid for all the days in the month whether worked or not. The monthly min. wage shall not be less than the
statutory minimum wage multiplied by 365 days divided by 12.
Agricultural Rate farm work from land preparation to harvesting
Industrial Rate manufacturing or processing of farm products
Non-Diminution Rule
GR: Nothing in the Labor Code shall be construed to eliminate or in any way diminish supplements, or
other employee benefits being enjoyed at the time of promulgation of the Labor Code. Benefits being
given to employees shall not be taken back or reduced unilaterally by the employer because the
benefit has become part of the employment contract, written or unwritten.
Exception: To correct an error, otherwise, if the error is left uncorrected for a reasonable period of
time, it ripens into a company policy and employees can demand for it as a matter of right.
When Non-Diminution Rule Applicable The rule is applicable if it is shown that the grant of the
benefit is 1. based on an express policy 2. has ripened into practice over a long period of time; and the
practice is consistent and deliberate, and is not due to an error in the construction/application of a doubtful
or difficult question of law
B3T2: Wages
WAGE-FIXING
Bonus a benefit which is contingent or conditional; its demandability depends on certain pre-conditions.
It is an amount granted voluntarily to an employee for his/her industry and loyalty which contributed
to the success and realization of profits of the employers business.
It is not a demandable and enforceable obligation unless it was promised to be given without any
conditions imposed for its payment in which case it is deemed part of the wage.
Payment by Results regulated by DOLE Secretary to ensure the payment of fair an reasonable wage
rates, preferably through time and motion studies or in consultation with representatives of workers and
employers organizations. Includes pakyaw, piece work and other noontime work.
Two Categories of Piece-Rate Employees
1. Employees paid piece rates which are prescribed in Piece Rate orders issued by DOLE wages are
determined by multiplying the number of pieces produced by the pay rate per piece.
2. Employees paid output rates which are prescribed by the employer and are not yet approved by the
DOLE to determine wage, the number of pieces produces is multiplied by the rate per piece as
determined by the employer. If the result is equal to or greater than the applicable legal daily rate in
proportion to the number of hours worked, the worker receives such increased amount. If the amount is
lower, the employer must make up the difference.
Benefits Payable to Piece-Rate Workers
1. Holiday Pay 5. Meal and Rest Periods
2. Applicable Statutory Minimum Daily Rate 6. Overtime and Premium Pay
3. Night Differential Pay 7. Thirteenth Month Pay
4. Service Incentive Leave 8. Other Benefits
B3T2: Wages
WAGE-FIXING
Basic Wage means all remuneration or earnings paid by an employer to a worker for services rendered
on normal working days and hours but does not include cost-of-living allowances, profit sharing payments,
premium payments, 13th month pay or other monetary benefits which are not considered as part of or
integrated into the regular salary of the workers
Minimum Wage lowest wage rate fixed by law than an employer can pay his employees
Who Sets Minimum Wage
1. Regional Tripartite Wages and Productivity Board
2. Congress
National Wages and Productivity Commission
1. Prescribes rules and guidelines for the determination of appropriate minimum wage and productivity
measures at the regional, provincial, or industry levels
2. Reviews regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine
if these are in accordance with prescribed guidelines and national development plans
Regional Tripartite Wages and Productivity Boards
1. Determine and fix minimum wage rates applicable in their regions, provinces or industries therein
and to issue the corresponding wage orders, subject to guidelines issued by the National Wages and
Productivity Commission.
2. Develop plans, programs and projects relative to wages, incomes and productivity improvement for
their respective regions
3. Receive, process and act on applications for exemption from prescribed wage rates as may be
provided by law or any Wage Order
4. Other functions
Composition of Each Regional Board
1. Regional Director of DOLE
B3T2: Wages
WAGE-FIXING
Composition of Each Regional Board
1. Regional Director of DOLE
2. Regional Director of NEDA
3. Regional Director of DTI
4. 2 members from Employer sector
5. 2 members from Employee sector
Wage Order an order issued by the Regional Board whenever the conditions in the region so warrant
after studying and investigating and studying all pertinent facts and based on the standards and criteria
prescribed by the Labor Code.
A wage order adjusts the minimum level but not the levels above the minimum. It does not mandate
across the board salary increase.
Employees NOT Covered
1. Household or domestic helpers, including family drivers and workers in the personal service of another
2. Workers and employees in retail/service establishments regularly employing not more than 10 workers,
when exempted from compliance, for a period fixed by the Commission/Boards
3. Workers and employees in new business enterprises outside the National Capital Region and export
processing zones for a period of not more than two or three years, as the case may be, from the start of
operations when exempted
Effectivity of Wage Orders takes effect after 15 days from its complete publication in at least one
newspaper of general circulation in the region
Public Hearings and Consultations Mandatory notice must be given to employees and employers
other interested parties.
A wage order issued without the required public consultation and newspaper publication is null and
void.
B3T2: Wages
WAGE-FIXING
Frequency 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 EXCEPT when Congress
itself issues a law increasing wages.
Standards/Criteria for Minimum Wage Fixing must be economically feasible to maintain the
minimum standards of living necessary for the health, efficiency and general well-being of the employees
within the framework of the national economic and social development program. Factors to Consider:
1. The demand for living wages
2. Wage adjustment vis--vis the consumer price index
3. The cost of living and changes or increases
4. The needs of workers and their families
5. The need to induce industries to invest in the countryside
6. Improvements in standards of living
7. The prevailing wage levels
8. Fair return of the capital invested and capacity to pay of employers
9. Effects on employment generation and family income
10. The equitable distribution of income and wealth along the imperatives of economic and social
development
Wage Distortion 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 and among
employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage
structure based on skills, length of service or other logical basis of differentiation. Simply, if the pay
advantage of a position over another is removed or significantly reduced by a pay adjustment required by a
wage order, such pay advantage should be restored.
B3T2: Wages
WAGE-FIXING
Correction of Wage Distortion
A. ORGANIZED ESTABLISHMENT
1. Employer and union shall negotiate to correct the distortion
2. Any dispute arising should be resolved through grievance procedure under CBA
3. If dispute remains unresolved, through voluntary arbitration
B. UNORGANIZED ESTABLISHMENT
1. The employer and employees shall endeavor to correct the distortion
2. Any dispute shall be settled through National Conciliation and Mediation Board (NCMB)
3. If remains unresolved after 10 days of conciliation, it shall be referred to the NLRC
Amount of Distortion Adjustment the restoration of the previous pay advantage is the aim but not
necessarily to the last peso. Restoration of appreciable differential, a significant pay gap, should suffice as
correction.
Suggested Formula to Correct a Salary Distortion
Minimum Wage = % x Prescribed Increase Actual Salary
B3T2: Wages
PAYMENT OF WAGES
Manner of wage payment 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 absolutely prohibited even when
expressly requested by the employee.
Payment by check Payment of wages by bank checks, postal checks or money orders is allowed where
1. such manner of wage payment is customary on the date of the effectivity of the Labor Code,
2. where it is so stipulated in a collective agreement, or
3. where all of the following conditions are met:
a. There is a bank or other facility for encashment within a radius of 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
d. The payment by check 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
1. not less than once every 2 weeks; or
2. twice a month at intervals not exceeding 16 days
Except:
1. In case payment cannot be made with such regularity due to force majeure or circumstances beyond the
employer's control the employer shall pay the wages immediately after such force majeure or
circumstances have ceased.
2. In case of payment of wages by results involving work which cannot be finished in 2 weeks, payment
shall be made at intervals not exceeding sixteen days in proportion to the amount of work completed. Final
settlement shall be made immediately upon completion of the work.
B3T2: Wages
PAYMENT OF WAGES
Place of payment the place of payment shall be at or near the place of undertaking. Payment in a place
other than the work place shall be permissible only under the following circumstances:
1. 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
2. When the employer provides free transportation to the employees back and forth
3. Under any other analogous circumstances; Provided, That the time spent by the employees in collecting
their wages shall be considered as compensable hours worked
Prohibited Place of Payment bar, night or day club, drinking establishment, massage clinic, dance hall,
or other similar places or in places where games are played with stakes of money or things representing
money except in the case of persons employed in said places
Payment through Banks; Requisites
1. There must be a written permission of the majority of the employees concerned in an establishment
2. The establishment must have 25 or more employees
3. The establishment must be located within 1 km. radius to the bank.
Payment through ATM allowed
Direct Payment of Wages - paid directly to workers to whom they are due. The exceptions:
1. Payment Through Another Person
a. In case of force majeure rendering such payment impossible provided such person is unde written
authority given by the worker for the purpose
b. When authorized under existing law including: i. payments for the insurance premiums of the
employee ii. union dues where the right to check-off has been recognized by the employer in
accordance with a collective agreement iii. authorized in writing by the individual employee
concerned
B3T2: Wages
PAYMENT OF WAGES
2. Payment Through Heirs of Worker in case the worker has died, employer may pay wages of the
deceased to the heirs of the latter without necessity of intestate proceedings
3. Payment through Member of Workers Family where the
employer is authorized in writing by the employee to pay
his wages to a member of his family
Non-interference in Disposal of Wages No employer
shall limit or otherwise interfere with the freedom of any
employee to dispose of his wages and no employer shall in
any manner oblige any of his employees to patronize any
store or avail of the services offered by any person.
Wage Deductions (GR: NOT allowed)
Except:
1. In cases where the worker is insured with his consent by the employer, and the deduction is to
recompense the employer for the amount paid by him as premium on the insurance
2. For union dues, in cases where the right of the worker or his union to check-off has been recognized by
the employer or authorized in writing by the individual worker concerned
3. In cases where the employer is authorized by law or regulations issued by the DOLE Secretary
Other Allowable Deductions
1. In cases where employee indebted to employer, where such indebtedness has become due and
demandable
2. In court awards, wages may be the subject of execution or attachment, but only for debts
incurred for food, shelter, clothing, and medical attendance
3. Withholding Tax
B3T2: Wages
PAYMENT OF WAGES
4. Salary deductions of a legally established cooperative
5. Deductions for payment to 3rd persons, upon written authorization of the employee
6. Union dues
7. Agency fee
8. Deductions for value of meals and other facilities
9. Deductions for loss or damage
10. SSS, Medicare, Pag-IBIG premiums
Deductions for Loss or Damage
GR: No employer shall require his worker to make deposits for the reimbursement of loss of or
damage to material, equipment, or tools supplied by the employer.
Except: When the trade, occupation or business of the employer recognizes or considers the
practice of making deductions or requiring deposits necessary or desirable.
Requisites for Valid Deduction for Loss/Damage
1. The employee concerned is clearly shown to be responsible for the loss or damage
2. The employee is given reasonable opportunity to show cause why deduction should not be made
3. The amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage
4. The deduction from the wages of the employee does not exceed 20% of the employee's wages in a
week
Prohibited / Unlawful Acts
1. 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 workers consent.
2. 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.
B3T2: Wages
PAYMENT OF WAGES
Prohibited / Unlawful Acts
3. Refuse to pay or reduce the wages and benefits, discharge or in any manner discriminate against any
employee who has filed any complaint or instituted any proceeding under this Title or has testified or is
about to testify in such proceedings.
4. Make any statement, report, or record filed or kept pursuant to the provisions of this Code knowing such
statement, report or record to be false in any material respect.
LIABILITY FOR WAGES

Worker Preference in Case of Employers Bankruptcy workers shall enjoy first preference as
regards their wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such
unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors
may be paid.
A declaration of bankruptcy or a judicial liquidation must take place before the workers preference
may be enforced.
Establishes a preference of credit and NOT a lien.
Attorneys Fees
1. In case of unlawful withholding of wages, the culpable party may be assessed attorneys fees equivalent
to ten percent 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, attorneys fees which exceed ten percent of the amount of wages recovered.
B3T3: Working conditions for special groups of employees
WOMEN
Night Work Prohibition no woman regardless of age shall be employed or permitted or suffered to
work, with or without compensation in any:
1. In any industrial undertaking or branch thereof - between 10 pm 6 am of the following day; or
2. In any commercial or non-industrial undertaking or branch thereof, other than agricultural -
between 12 mn 6 am of the following day; or
3. In any agricultural undertaking at nighttime unless she is given a period of rest of not less than nine
(9) consecutive hours.
Exceptions: Prohibitions DO NOT APPLY
1. In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disasters or calamity, to prevent loss of life or property, or in cases of force
majeure or imminent danger to public safety;
2. In case of urgent work to be performed on machineries, equipment or installation, to avoid serious loss
which the employer would otherwise suffer;
3. Where the work is necessary to prevent serious loss of perishable goods;
4. Where the woman employee holds a responsible position of managerial or technical nature, or where the
woman employee has been engaged to provide health and welfare services;
5. Where the nature of the work requires the manual skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male workers;
6. Where the women employees are immediate members of the family operating the establishment or
undertaking; and
7. Under other analogous cases exempted by the Secretary of Labor and Employment in appropriate
regulations.
WOMEN
Facilities for Women
The DOLE Secretary may require employers to:
1. 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
2. To establish separate toilet rooms and lavatories for men and women and provide at least a dressing
room for women
3. To establish a nursery in a workplace for the benefit of the women employees therein
4. 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 (under RA 1161 SSS Law)
A female member, who need not be legally married, who has paid for at least 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 a. 60 days
normal delivery b. 78 days caesarian delivery
Benefits shall be paid only for the FIRST 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 employees 13th month pay for the calendar year
The employer shall advance the payment subject to reimbursement by the SSS.
It is not necessary that the woman be impregnated by her legitimate husband. It is immaterial who the
father is.
Every pregnant woman in the private sector, whether married or unmarried, is entitled to the maternity
leave benefits.
WOMEN
Paternity Leave (under RA 8187 Paternity Leave Act of 1996)
Grants 7 working days of paternity leave with full pay to married male employees in the private and
public sectors. (Sec. 1(a), RA 8187 IRR)
Conditions to entitlement: a. The claimant,
a married male employee, is employed at the time of delivery of his child
b. He is cohabiting with his spouse at the time she gives birth or suffers a miscarriage
c. He has applied for paternity leave
d. His wife has given birth or suffered a miscarriage
Wife lawful wife; woman legally married to male employee concerned

Family Planning Services; Incentives for Family Planning employers who habitually employ more
than 200 workers in any locality shall provide free family-planning services to their employees and their
spouses which shall include but not limited to, the application or use of contraceptives
Discrimination Prohibited unlawful for any employer to discriminate against any woman employee
with respect to terms and conditions of employment solely on account of her sex
Acts of Discrimination
1. Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe
benefits, to a female employees as against a male employee, for work of equal value
2. Favoring a male employee over a female employee with respect to promotion, training opportunities,
study and scholarship grants solely on account of their sexes
Person guilty of committing these acts are criminally liable under Arts. 288-289 of the Labor Code
That the institution of any criminal action under this provision shall not bar the aggrieved
employee from filing an entirely separate and distinct action for money claims, which may include
claims for damages and other affirmative reliefs. The actions hereby authorized shall proceed
independently of each other.
Page 34

Labor Laws of The Philippines (P.D. 442) : MBA 113 By: Elva A. Aban

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Labor Laws of The Philippines (P.D. 442) : MBA 113 By: Elva A. Aban

Enviado por

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Labor Laws of the

Philippines (P.D. 442)

By: Elva A. Aban

Chapter 3: Miscellaneous Provisions

Article 40: Employment permit for non-

Article 73: Learners defined.

Article 78: Definition.

Article 82: Coverage.

Chapter 2: Weekly Rest Chapter 3: Holidays,

Chapter 1: Preliminary Chapter 2: Minimum

Chapter 3: Payment Chapter 4:

Chapter 1: Employment of Women

Chapter 3: Employment of househelpers

Article 154: Regulations of Secretary of Labor and Employment.

Article 155: Distribution of homework.

Chapter 1: Medical and Dental Services

Chapter 1: Policy and definition

Chapter 5: Medical benefits

Chapter 7: Death Chapter 8: Provisions

Chapter 9: Records, Reports and Penal Provisions

Article 205. Records of death or disability

Chapter 1 Policy Chapter 2 Definitions

Chapter 1 Creation Chapter 2 Powers ad

Article 226: Bureau of Labor Relations

Chapter 2: Rights and conditions of membership

Chapter 2 Assistance to labor organizations

Chapter 3 Foreign activities

Chapter 4 Penalties for violation

Title 3: Transitory and Final Provisions

Exemption from Permit

LIABILITY FOR WAGES

c. He has applied for paternity leave

d. His wife has given birth or suffered a miscarriage

Wife lawful wife; woman legally married to male employee concerned

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