LABOR LAW AND SOCIAL LEGISLATION

SOCIAL LEGISLATION
LEAVE BENEFIT UNDER R.A. 9262
1. Victims under this Act shall be entitled to take a paid leave of absence up to ten (10) days in
addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations,
extendible when the necessity arises as specified in the protection order.

RETIREMENT PAY
2. Retirement is a result of a bilateral act of the parties, a voluntary agreement between the
employer and the employee. An employer is, however, free to impose a retirement age earlier
than that mandated by R. A. 7641. (Cercado vs. Uniprom, G.R. NO. 188154, October 13, 2010)
3. R. A. No. 7641 applies to all employees in the private sector, regardless of position,
designation, status, and irrespective of the method by which their wages are paid. They shall
include part-time employees, employees of service and other job-contractors and domestic
helpers or persons in the personal service of another.
4. Part-time employees are entitled to retirement pay, after satisfying the following conditions
precedent for optional retirement:
a. there is no retirement plan between the employer and employee;
b. the employee should have reached the age of sixty (60) years;
c. should have rendered at least five (5) years of service (Explanatory Bulletin on Part-Time
Employment issued by Acting DOLE Secretary Jose Brilliantes, 1996)
5. For covered workers who are paid by results and do not have fixed monthly rate, the basis for
the determination of salary for fifteen (15) days shall be their average daily salary (ADS).
6. Benefits:
A retiree is entitled to a retirement pay equivalent to at least month (22.5 days) salary for
every year of service, a fraction of at least six (6) months being considered as one whole year.
7. Taxability.
The tax exemption privilege granted to retirement benefits under R.A. No. 7641 can only be
invoked when there is no existing retirement plan, CBA, or other applicable employment
contract in the establishment. In the presence of a retirement plan duly approved by the BIR,
the same shall be followed provided that it shall not be less than those provided under R. A.
7641. (Revenue regulation No. 12-86; Intercontinental Broadcasting Corporation vs. Noemi
Amarilla, et. al., G.R. No. 162775, October 27, 2006)

2013 San Beda College of Law Centralized Bar Operations

Executive Committee:

Ian Michel Geonanga, Over-all Chairperson; Jose Angelo David, Academic Operations Chairperson; Ruth Abigail Acero, Hotel Operations Chairpe
Alberto Recalde Jr., Operations; Maria Carmela Hautea, Secretariat; Mark Emmanuel Abilo, Finance;
Ryan Liggayu, EDP; Jomarc Dimapilis, Logistics

Subject Committes: Erika Marie Gallego, Political Law; Sheila Pasicolan, Labor Law
Subject Committee Members:
Advisers:

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LABOR LAW

KASAMBAHAY LAW
8. Domestic worker or kasambahay refers to any person engaged in domestic work within an
employment relationship such as, but not limited to general househelp, nursemaid or yaya,
cook, gardener, or laundry person.
9. The employable age of kasambahay is fifteen (15) years old and above.
10. A domestic worker who has rendered at least one (1) year of service shall be entitled to
annual service incentive leave of five (5) days with pay; Provided, that any unused portion of
annual leave shall not be cumulative or carried over to the succeeding years. Unused leaves
shall not be convertible to cash.
11. A domestic worker who has rendered at least one (1) month of service shall be covered by
SSS, PhilHealth, and Pag-Ibig, and shall be entitled to all the benefits in accordance with the
pertinent provisions provided by law.
12. Mandatory benefits of kasambahay:
a. Monthly minimum wage;
b. Daily rest period of 8 (total) hours;
c. Weekly rest period of 24 hours (uninterrupted) hours;
d. 5 days annual service incentive leave with pay;
e. 13th month pay;
f. SSS benefit;
g. PhilHealth benefit; and
h. Pag-Ibig benefit.
13. Rights and privileges of kasambahay:
a. Freedom from employers interference in wage disposal;
b. Standard of treatment;
c. Board, lodging, and medical attendance;
d. Right to privacy;
e. Access to outside communication;
f. Access to education and training;
g. Right to be provided a copy of the employment contracat;
h. Right to certificate of employment;
i. Right to form, join, or assist labor organizations;
j. Right to terminate employment based just cause; and
k. Right to exercise religious beliefs and cultural practices.

SSS LAW vs. GSIS LAW

14. Difference between SSS Law and GSIS Law:
SSS LAW
Employer- Any person, who
carries on in the Philippines any
trade,
business,
industry,
undertaking, and uses the
services of another person
under his orders.
2. Employees- Any person who
performs
services
for
an
employer
who
receives
compensation for such services,
where there is an employeremployee relationship.
1. Employment purely casual and
not
for
the
purpose
of
occupation or business of the
employer;
2. Services performed on or in
connection with an aliean
1.

COVERAGE

EXCLUSION

1.

2.

1.
2.

3.

GSIS LAW
Employer- National government,
its political subdivisions, branches,
agencies
or
instrumentalities,
including government-owned or
controlled
corporations
with
original charters.
Employee- Any person receiving
compensation while in the service
of an employer as defined herein,
whether
by
election
or
appointment, including Barangay
and Sanggunian offcials.
Members of AFP and PNP;
Contractual employees, who have
no
employer-employee
relationship with the agency they
serve; and
Members of Judiciary and

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BENEFICIARIES

BENEFITS

vessel by an employee if he is
employed when such vessel is
outside the Philippines;
a. Service performed in the
employ of the Philippine
government, instrumentality
or agency thereof;
b. Service performed in the
employ
of
a
foreign
government, international
organization, or their whollyowned instrumentality; and
c. Services
performed
by
temporary
employees,
which may be excluded by
the
regulation
of
the
Commission.
1. Legal spouse entitled for support;
2.
Child,
whether
legitimate,
legitimated, legally adopted or
illegitimate; and
3. Parents dependent for support;
1. Monthly Pension
2. Dependents Pension
3. Retirement Benefits
4. Death Benefits and Permanent
Disability
5. Funeral Benefits
6. Sickness Benefits
7. Maternity Benefits

Constitutional Commission, who

shall be covered only by life
insurance cverage;
a. Purely casual employees.

1. Legal spouse entitled for support;

2.
Child,
whether
legitimate,
legitimated, legally adopted or
illegitimate; and
3. Parents dependent upon the
meber for support.
1. Temporary disability benefits
2. Separation benefits
3.
Unemployment/
involuntary
separtion benfits
4. Survivorship benefits;
5. Life insurance benefits

DEATH BENEFITS
15. Under No. 6, Section C, Part II of the POEA Standard Employment Contract Governing the
Employment of All Filipino Seamen On-Board Ocean-Going Vessels (POAE-SEC), the death
of a seaman during the term of employment makes the employer liable to his heirs for death
compensation benefits. This rule, however is not absolute. The employer may be exempt
from liability if it can successfully prove that the seamans death was caused by an injury
directly attributable to his deliberate and wilful act. (Crewlink, Inc. and/or Gulf marine
Services vs. Editha Teringtering, G.R. No. 166803, October 11, 2012)

LIMITED PORTABILTY LAW

16. Portability refers to the transfer of funds for the account and benefit of a worker who transfers
from one system to the other.
17. Totalization refers to the process of adding up the periods of creditable services or
contributions each of the systems, for purposes of eligibilty and computation of benefits.
18. Covered workers are those who transfer employment from public to private sector or viceversa or employed in both private or public sectors.
19. Benefits to be paid by the system shall be in proportion to the number of contributions
actually remitted to that system.

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EMPLOYEES COMPENSATION AND STATE INSURANCE FUND

20. Coverage of Compensability
a. Injury
i. Sickness
j. Disability
k. Death
19. Compulsory coverage
a. All employers;
b. Their employees not over 60 years old; or
c. Employees over 60 years old and paying contributions;
d. Filipino employees employed abroad subject to prescribed ECC regulations
e. Covered Employees
1. Persons compulsorily covered by GSIS or SSS;
2. Those employed as casual, emergency, temporary, substitute or contractual
employees; and
3. Members of the AFP.
f. If the employee was not in the actual performance of his duties when he died, but
returning to work as instructed by his superior, same is equivalent to performance of duty
under Section 1, Rule III of ECC Rules. (GSIS vs. Zarate, et al., G.R. No. 170847, August 3,
2010).

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LABOR LAW