Labor I: Labor Standards& Welfare

Teacher: Atty. Filemon Ray Javier

Rodriguez MemAid
Step 1: Is there an employer-employee relationship?
Use the 4-Fold Test:
a. Right to hire or to the selection and engagement of the
employee.
b. Payment of wages and salaries for services
c. Power of dismissal or the power to impose disciplinary actions.
d. Power to control the employee with respect to the means and
methods by which the work is to be accomplished. This is
known as the right-of-control test.
Or when applicable, use the two-tiered Test:
a. power to control
b. economic reality/economic dependency
Consider the existing economic conditions prevailing between the
parties, in addition to the standard of right-of-control like the inclusion
of the employee in the payrolls, to give a clearer picture in determining
the existence of an employer-employee relationship based on an
analysis of the totality of economic circumstances of the worker.
Thus, the determination of the relationship between employer and
employee depends upon the circumstances of the whole economic
activity, such as: (1) the extent to which the services performed are an
integral part of the employers business; (2) the extent of the workers
investment in equipment and facilities; (3) the nature and degree of
control exercised by the employer; (4) the workers opportunity for profit
and loss; (5) the amount of initiative, skill, judgment or foresight
required for the success of the claimed independent enterprise; (6) the
permanency and duration of the relationship between the worker and
the employer; and (7) the degree of dependency of the worker upon
the employer for his continued employment in that line of business.
The proper standard of economic dependence is whether the worker is
dependent on the alleged employer for his continued employment in
that line of business. In the United States, the touchstone of economic
reality in analyzing possible employment relationships for purposes of
the Federal Labor Standards Act is dependency.[25] By analogy, the
benchmark of economic reality in analyzing possible employment

relationships for purposes of the Labor Code ought to be the economic

dependence of the worker on his employer.
Step 2: What kind employee is the person?
REGULAR EMPLOYEE
a. where the employee has been engaged to perform activities
which are usually necessary or desirable in the usual
business or trade of the employer (regular employee by
nature of work)or;
b. casual employee who has rendered at least one year of
service, whether such service is continuous or broken, shall
be considered a regular employee with respect to the
activity in which he is employed and his employment shall
continue while such activity exists(regular employee by years
of service)
o 1 year = 365 days (whether continuous or broken)
o When one is deemed as a casual regular then the
employer CANNOT get another casual worker to do
your job
CASUAL EMPLOYEE performs work which is incidental to the
usual business or trade of the employer
Note: In determining w/n the activity perform is usually necessary or
desirable in the usual trade or business of the employer sometimes
you really need to rely on gut feel.
PROJECT EMPLOYEEto assert that one is a project employee and
not a regular employee, identify:
a. SPECIFIC: designation of a specific project or undertaking for
which the employee is hired; and
b. DURATION: clear determination of the completion or
termination of the project AT THE TIME of the employees
engagement.
o The services of the project employees are legally and
automatically terminated upon the end or completion
of the project as the employees services are
coterminous with the project.
o Even if there has been consistent rehiring for 10
years, or even if the duration of the project is more
than one year, as long as there is an identifiable and
different project each and every time (e.g. construction

workers), then such employee will

not be considered a regular
employee.
Also, the project employee may be
performing work which is usually
necessary or desirable in the usual
business or trade of the employer.

BUT note that GMA Network v Pabriaga tells us

that: A project employee or a member of a work
pool MAY acquire the status of a regular employee
when the following concur:
a. There is a continuous rehiring of project
employees even after cessation of a project;
and
b. The tasks performed by the alleged project
employee are vital, necessary and
indispensable to the usual business or trade
of the employer.
Definition in Art. 280: where the employment has
been fixed for a specific project or undertaking the
completion or termination of which has been
determined AT THE TIME OF ENGAGEMENT of the
employee
SEASONAL EMPLOYEE
a. SEASONAL: Where the work or service to
be performed is seasonal in nature
b. SEASON: And the employment is for the
duration of the season
o

REGULAR SEASON WORKERS:

Those seasonal workers who, even
during the off-season period, are
not separated from the service but
are simply considered on leave
until they are re-employed.

FIXED-TERM EMPLOYEE For there to be a Valid

Fixed Term Employment Contract (in order that it
cannot be said to circumvent security of tenure):
a. KNOWINGLY & VOLUNTARILY:
(Intelligently & willingly)that 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
b. EQUAL FOOTING: 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.
c. That there was in fact a fixed term
(implied)
d. Additional: Was it entered into for the
circumvention of the security of tenure of
employees? If yes, then it is not valid.
o

PROJECT EMPLOYMENT vs
FIXED TERM EMPLOYMENT:
While the former requires a project
as restrictively defined, the duration
of a fixed-term employment agreed
upon by the parties may be any
day certain, which is understood to
be "that which must necessarily
come although it may not be known
when." The decisive determinant in
fixed-term employment is not the
activity that the employee is called
upon to perform but the day certain
agreed upon by the parties for the
commencement and termination of
the employment relationship

PROBATIONARY6 months = 180 days

He must be informed at the time of engagementof
the reasonable standard to be observed and that he
is only a probationary employee.
Why? For termination purposes (before the 6-month
period) or for non-absorption into the regular
workforce.
If employer doesnt do this, probationary employee
is deemed to be a regular employee from Day 1.
A probationary employee may be terminated by:
a. just causes
b. failure to meet standards of employment
Note: The probationary employee is not entitled to
the 6-month period. The employer may fire him
even before such period ends as long as he was
informed of the standards to be observed at the
time of engagement and that the probationary
employee DID NOT meet such standard. And how
do we construe at the time of engagement? Upon
signing the contract? Or upon Day 1 of being on the
job? FLJ believes that being informed on Day 1 is
sufficient.
General Rule: If he works beyond 180 days, he will
be automatically be considered as a regular
employee on Day 181.

Exception:
a. When the job is technical in nature (w/n
there is an apprenticeship program)
b. When, as an act of compassion, the parties
decide to extend the 180 day period so that
the probationary employee may prove that
his is fit for the job.
Guaranteed Basic Rights of Workers under the
Constitution:
WHOSE-CD

right to a living Wage

right to work under Humane conditions
right to Organize thesmelves
right to enjoy Security of tenure
right to Engage in peaceful concerted activities
right to Conduct collective bargaining or
negotiation with management

right to participate in policy and Decision-making

processes affecting their rights and benefits as
may be provided by law

Recruitment and placement - refers to any act of

canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes
referrals, contract services, promising or advertising
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.

General Rule Direct hiring of Filipino workers by a foreign employer

is not allowed
EXCEPTIONS Authorized Entities
The following entities, as summarized by Azucena, are authorized to
recruit and place workers for local or overseas employment.
Authorized Entities: PPPP-CADS
Public employment office
Private recruitment entities
Private employment agencies
POEA
Construction contractors if authorized to operate by DOLE and the
Construction Industry Authority
other persons or entities As may be authorized by the DOLE
Secretary
members of the Diplomatic corps although hirings done by them
have to be processed through the POEA
Shipping or manning agents or representatives

Selective Deployment The govt recognizes any of the following as

a guarantee of the receiving country for the protection of verseas
Filipino workers:
a) it has existing labor or social laws protecting the rights of
workers, including migrant workers
b) it is a signatory to and/or ratifer of multilateral conventions,
declarations or resolutions relation to the protection of
workers, including migrant workers; and
c) it has concluded a bilateral agreement or arrganement with
the government on the protection of the rights of OFWs
Provided, that the receiving country is taking positive, concrete
measures to protect the rights of migrant workers in furtherance of any
of the guarantees under subparagraphs (a), (b), & (c) hereof.
If the aforementioned guarantees do not exist in the country of
destination, then no permit for deployment shall be issued by the
POEA.

1.
2.

3.
4.

Grounds for Disciplinary Action of Overseas Employee:

STDDD PERVV FUGG
a) Initiating or joining a Strike or work stoppage where the laws of
the hose country prohibit strikes or similar actions;
b) Creating Trouble at the worksite or in the vessel;
c) Drug addiction or possession or trafficking of prohibited drugs;
d) Desertion or abandonment;
e) Drunkenness, esp. where the laws of the host country prohibit
intoxicating rinks;
f) Prostitution;
g) Embezzlement of company funds of moneys and properties of
a fellow worker entrusted for delivery to kins or relatives in the
Philippines;
h) Robbery or theft;
i) Violation/s of the laws and sacred practices of the host country
and unjustified breach of govt-approved employment contract
by a worker
j) Vandalism or destroying company property;
k) Commission of a Felony punishable by Philippline laws or by
the laws of the host country
l) Unjust refusal to depart for the worksite after all employment
and travel documents have been duly approved by the
appropriate govt agency/ies; and
m) Gambling, esp. where the laws of the host country prohibit the
same;
n) Gunrunning or possession of deadly weapons;
5.
Labor Code
Regulation of Recruitment and Placement Activities
Art. 34. Prohibited practices.
It shall be unlawful for any individual, entity, licensee,
of To induce or attempt to induce a worker alread
6. or holder (d)
authority:
employed to quit his employment in order to offer him to anoth
unless the transfer is designed to liberate the worker fro
oppressive terms and conditions of employment;
7.
(e) To influence or to attempt to influence any person
entity not to employ any worker who has not applied f
employment through his agency;
8.
9.
(f) To engage in the recruitment or placement of workers
jobs harmful to public health or morality or to the dignity of th
Republic of the Philippines;
10.
(g)To obstruct or attempt to obstruct inspection by th
Secretary of Labor or by his duly authorized representatives;
11.
(a) To charge or accept, directly or indirectly, any
12. amount (h) To fail to file reports on the status of employmen
greater than that specified in the schedule of allowable
fees
placement
vacancies, remittance of foreign exchange earning
prescribed by the Secretary of Labor, or to make a worker pay
any
separation
from jobs, departures and such other matters
amount greater than that actually received by him as a loan
or
information
as may be required by the Secretary of Labor.
advance;
13.
14.
(i) To substitute or alter employment contracts approve
and verified by the Department of Labor from the time of actu
(b) To furnish or publish any false notice or information
or thereof by the parties up to and including the periods
signing
document in relation to recruitment or employment;
expiration of the same without the approval of the Secretary
(c) To give any false notice, testimony, information
or
Labor;
document or commit any act of misrepresentation for the
15.purpose
of securing a license or authority under this Code.
16.
(j) To become an officer or member of the Board of an

corporation engaged in travel agency or to be engaged21.

directly or
indirectly in the management of a travel agency; and
17.
18.

(k)To withhold or deny travel documents from applicant

workers before departure for monetary or financial considerations
22.
other than those authorized under this Code and its implementing
rules and regulations.

19.
20.

IRR for RA 8042 (as amended by RA 10022)

RULE IV: ILLEGAL RECRUITMENT

mandated by principals/shipowners where the latter

shoulder the cost of such trainings;

Sec. 3. Other Prohibited Acts.

f. For a suspended recruitment/manning agency to

engage in any kind of recruitment activity including
the processing of pending workers applications;

In addition to the acts enumerated above, it shall

also be unlawful for any person or entity to commit
the following prohibited acts:
a. Grant a loan to an OFW with interest exceeding
eight (8%) percent per annum, which will be used
for payment of legal and allowable placement fees
and make the migrant worker issue, either
personally or through a guarantor or
accommodation party, postdated checks in relation
to the said loan;
b. Impose a compulsory and exclusive arrangement
whereby an OFW is required to avail of a loan only
from specifically designated institutions, entities, or
persons;
c. Refuse to condone or renegotiate a loan incurred
by an OFW after the latters employment contract
has been prematurely terminated through no fault of
his/her own;
d. Impose a compulsory and exclusive arrangement
whereby an OFW is required to undergo health
examinations only from specifically designated
medical clinics, institutions, entities or persons,
except in the case of a seafarer whose medical
examination cost is shouldered by the
principal/shipowner;
e. Impose a compulsory and exclusive arrangement
whereby an OFW is required to undergo training,
seminar, instruction or schooling of any kind only
from specifically designated institutions, entities or
persons, except for recommendatory training

g. For a recruitment/manning agency or a foreign

principal/employer to pass-on to the OFW or deduct
from his/her salary the payment of the cost of
insurance fees, premium or other insurance related
charges, as provided under the compulsory
workers insurance coverage.
Sec. 2. Crime Involving Economic Sabotage.
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.
Sec. 4. Persons Responsible.
The persons criminally liable for the above offenses
are the principals, accomplices and accessories. In
case of juridical persons, the officers having
ownership, control, management or direction of their
business who are responsible for the commission of
the offense and the responsible employees/agents
thereof shall be liable.
Sec. 5. Penalties.
(a) Any person found guilty of illegal recruitment
shall suffer the penalty of imprisonment of not less
than twelve (12) years and one (1) day but not more
than twenty (20) years and a fine of not less than
One Million Pesos (Php1,000,000.00) nor more than
Two Million Pesos (Php2,000,000.00)

(b) The penalty of life imprisonment and a fine of not

less than Two Million Pesos (Php2,000,000.00) nor
more than Five Million Pesos (Php5,000,000.00)
shall be imposed if illegal recruitment constitutes
economic sabotage as defined therein.
Provided, however, that the maximum penalty shall
be imposed if the person illegally recruited is less
than eighteen (18) years of age or committed by a
non-licensee or non-holder of authority.
(c) Any person found guilty of any of the prohibited
acts shall suffer the penalty of imprisonment of not
less than six (6) years and one (1) day but not more
than twelve (12) years and a fine of not less than
Five Hundred Thousand Pesos (Php500,000.00)
nor more than One Million Pesos
(Php1,000,000.00).
If the offender is an alien, he or she shall, in addition
to the penalties herein prescribed, be deported
without further proceedings.
In every case, conviction shall cause and carry the
automatic revocation of the license or registration of
the recruitment/manning agency, lending
institutions, training school or medical clinic.
Sec. 6. Venue.
A criminal action arising from illegal recruitment as
defined under this Rule shall be filed with the
Regional Trial Court of the province or city where
the offense was committed or
where the offended party actually resides at the
time of the commission of the offense;
Provided, that the court where the criminal action is
first filed shall acquire jurisdiction to the exclusion of
other courts.

Article 26: Travel Agencies Prohibited to Recruit

Travel agencies and sales agencies of airline companies are
prohibited from engaging in the business of recruitment and
placement of workers for overseas employment whether for pr
or not.
Persons with derogatory records such as those convicted for il
recruitment or other crimes involving moral turpitude are also
disqualified
Officials or employees of DOLE, POEA, OWWA, DRA and othe
govt agencies directly involved in the implementation of RA 80
or any of their relatives within the 4th civil degree are likewise
prohibited.
RULE V: PROHIBITION OF GOVERNMENT
PERSONNEL
Section 1. Disqualification.
The following personnel shall be prohibited from
engaging directly or indirectly in the business of
recruitment of migrant workers:
(a) Any official or employee of the DOLE, POEA,
OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA,
CFO, NBI, Philippine National Police (PNP), Manila
International Airport Authority (MIAA), Civil Aviation
Authority of the Philippines (CAAP), and other
government agencies involved in the
implementation of the Act, regardless of the status
of his/her employment; and
(b) Any of his/her relatives within the fourth civil
degree of consanguinity or affinity.
Any government official or employee found to be
violating this section shall be charged
administratively, according to Civil Service Rules
and Regulations without prejudice to criminal
prosecution.

Sec. 7. Prescription.
Illegal recruitment cases under this Rule shall
prescribe in five (5) years: Provided, however, that
illegal recruitment cases involving economic
sabotage shall prescribe in twenty (20) years.

(c) For an officer or agent of a recruitment or

placement agency to become an officer or member
of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the
management of a travel agency (see Rule IV,
Section 1, paragraph (j),as cited above)

Sec. 8. Independent Action.

The filing of an offense punishable under this
section shall be without prejudice to the filing of
cases punishable under other existing laws, rules or
regulations.

(d) non-Filipino citizen to head or manage a

licensed recruitment/manning agency (see Rule IV,
Section 1, paragraph (n), as cited above)

Labor Code
Regulation of Recruitment and Placement Activities

DO 75-06: Revised Rules for the Issuance of Employment Per

to Foreign Nationals

General Rule: All foreign nationals who intend to engage in gainfu

employment in the Philippines shall apply for Alien Employment P

(AEP).

(c) enterprises registered under the Omnibus Investments Code (E

No. 226) may, for a limited period, employ foreign nations in techn
Exemption:The following categories of foreign nationals are supervisory,
exempt
or advisory postiions
from securing an employment permit
DIME-ROT
Suspension of AEP by the issuing RO, and after
2.1 All members of the Diplomatic service and foreign government
due process:
officials accredited by and with reciprocity arrangement with the
Philippine government;
1. Continued stay of the foreign national may result
in damage to the interest of the industry or the
2.2 Officers and staff of International organizations of which the
country
Philippine government is a member, and their legitimate spouses
2. The employment of the foreign national is
desiring to work in the Philippines;
suspended by the employer or by order of the Court
2.3 Foreign nationals elected as Members of the Governing Board
Cancellation/Revocation
of AEP by RD, and after
who do not occupy any other position, but have only voting rights
in
due
process:
the corporation;
NMF-MDT
2.4 All foreign nationals granted Exemption by law;
1. Non-compliance with any of the requirements or
conditions for which the AEP was issued;
2.7 Resident Foreign nationals(instead, get an Alien Employment
Resident Certificate or AERC)
2. Misrepresentation of facts in the application;
3. Submission of Falsified or tampered documents;
2.5 Owners and representatives of foreign principals whose 4.Meritorious objection or information against the
companies are accredited by the Philippine Overseas Employmet
employment of the foreign national as determined
Administration (POEA) who come to the Philippines for a limited
period
by the
Regional Director;
and solely for the purpose of interviewing Filipino applicants for
5. Foreign national has a Derogatory record; and
employment abroad;
6. Employer Terminated the employment of the
2.6 Foreign nationals who come to the Philippines to Teach, foreign
presentnational
Labor Code
and/or conduct research studies in universities and colleges as
Book III: Conditions of Employment
visiting, exchange or adjunct professors under formal agreements
between the universities or colleges in the Philippines and foreign
Art. 82. Coverage. The provisions of this Title shall
universities or colleges; or between the Philippine government
apply
andto employees in all establishments and
foreign government; provided that the exemption is on a reciprocal
undertakings whether for profit or not, but not to
basis;
GMFF-DPP
Government employees,
Managerial employees,
General Rule: Foreigners may not be employed in certain
Field personnel,
nationalized business.
-Public Utility at least 60% of capital is owned by Filipinos members of the Family of the employer who are
dependent on him for support,
-Natural Resources at least 60% of capital is owned by Filipinos
-Financing Companies at least 60% of capital is owned byDomestic
Filipinos helpers,
in the personal service of another,
-Mass Media Enterprises must be owned/managed whollyPersons
by
Filipinos
and workers who are Paid by results as determined
by the Secretary of Labor in appropriate regulations.
Exceptions:
(a) where the Secretary of Justice specifically authorizes the IRR for BOOK III: Conditions of Employment
employment of foreign technical personel, or
Rule 1: Hours of Work
-Why to the SOJ? In order to safeguard prosecution from the AntiSECTION 1. General statement on coverage.
Dummy Test
The provisions of this Rule shall apply to all
(b) where the aliens are elected members of the board of directors or
employees in all establishments and undertakings,
governing body of corporations or associations in proportion to their
whether operated for profit or not, except to those
allowable participation in the capital of such entities
specifically exempted under Section 2 hereof.

SECTION 2. Exemption. The provisions of this

Rule shall not apply to the following persons if they
qualify for exemption under the conditions set forth
herein:
(a) Government employees whether employed by
the National Government or any of its political
subdivision, including those employed in
government-owned and/or controlled corporations;
Note: If GOCC incorporated via the
Corporation Code then Labor Code still applies
(b) Managerial employees, if they meet all of the
following conditions:
(1) Their primary duty consists of the
management of the establishment in which they are
employed or of a department or sub-division
thereof.
(2) They customarily and regularly direct the
work of two or more employees therein.
(3) They have the authority to hire or fire
employees of lower rank; or their suggestions and
recommendations as to hiring and firing and as to
the promotion or any other change of status of other
employees, are given particular weight.

(c) Officers or members of a managerial staff if

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

(d) Domestic servants and persons in the

personal service of another if they perform such
services in the employer's home which are usually
necessary or desirable for the maintenance and
enjoyment thereof, or minister to the personal
comfort, convenience, or safety of the employer as
well as the members of his employer's household.
(e) Workers who are paid by results,
including those who are paid on piecework, "takay,"
"pakiao" or task basis, and other non-time work if
their output rates are in accordance with the
standards prescribed under Section 8, Rule VII,
Book Three of these regulations, or where such
rates have been fixed by the Secretary of Labor and
Employment in accordance with the aforesaid
Section.
(f) Non-agricultural field personnel if they
regularly perform their duties away from the
principal or branch office or place of business of
the employer and whose actual hours of work in
the field cannot be determined with reasonable
certainty.
Additionally, the IRR for Rule IV, Book III states that
Rule IV (Holidays with Pay) shall apply to all
employees except
xxx
(e) Field personnel and other employees whose
time and performance is unsupervised by the
employer xxx
Note: A supervisor is deemed a managerial
employee for Book III but not for Book V.
What are some of these Conditions of
Employment?
NOMM-NCR-LSS
(a) Normal Work Hours
Shall not exceed 8 hours a day
Hours Worked shall include:
i) all time during which an employee
is required to be on duty or to be at
prescribed workplace
ii) all time when an employee is
suffered or permitted to work
iii) rest period of short duration shall
be counted
(b) Overtime Pay
When work goes beyond 8 hours a day:

If on a regular day then OTP =

Regular Wage + 25% thereof
If on Holiday or RestDay then OTP
=Premium Rate for Holiday or Rest Day + 30%
thereof
Note that Undertime is not offset by ones
Overtime (Art. 88)
(c) Meal Periods
Shall be granted not less tha 60 minutes
time-off for their regular meals
(d) Minimum Wage
In Metro Manila, Php 481 for nonagricultural sector, Php 444 for agricultural sector
(e)Night Shift Differential
For work 10pm to 6am, NSD is not less
that 10% of Regular Wage for each hour of work
(f) Compensation for Rest Day, Sunday or Special
Holiday
For Holiday or Rest Day then an addition
of at least 30% of his regular wage is given
Where Holiday is also a Rest Day then
an addition of at least 50% of his regular wage
(g) Right to Weekly Rest Day
Rest period of not less than 24
consecutive hours after every 6 consecutive normal
work days
(h) Legal Holiday
12 Regular Holidays
(i) Service Incentive Leave
(k) Service Charge
12 Regular (Legal) Holidays
NMGALINEEBCR
New Years Day
Maundy Thursday
Good Friday
Araw ng Kagitingan
Labor Day
Independence Day
National Heroes Day
Eidl Fitr
Eidl Adha
Bonifacio Day
Christmas Day
Rizal Day

Special (Non-working) Day

Ninoy Aquino Day
All Saints Day
Christmas Eve
Last Day of the Year

Date
Monday nearest Auguest 21
November 1
December 24
December 31

Muslim Holidays
Amun Jadid (New Year)

Date
1stday of the lunar month of
Muharram
12th day of the third lunar mo
of Rabi-ul-Awwal
27th day of the seventh lunar
month of Rajab

Maulid-un-Nabi (Birthday of the

Prophet Muhammad)
Lailatul Isra Wal Mi Rai (Nocturnal
Journey & Ascension of the
Prophet Muhammad)
Id-ul-Fitr (Hari Raja Pausa)
Id-ul-Adha (Hari Raha Haji)

1st day of the tenth month of

Shawwal
10th of the twelfth lunar month
Dhul-Hijja

Note: For Special (Working) Days an employee is

enetied only to his/her daily wage rate. One
example is February 25 (EDSA Revolution) which is
a working day, but no-class day in schools.
Special note for Teachers: no pay for no work done
on regular holidays; but with regular pay for days
declared as special holidays or for some other
reason classes are called off when they are
supposed to have taught.
Situation
Worked OT on a normal day
Worked OT on a scheduled rest
day or a special day
Worked OT on a regular holiday
Worked OT on a regular holiday
which falls on a scheduled rest
day

Hours (NDR-Normal Daily R

NDR x 125% x OT hours
NDR x 130% x OT hours

NDR x 200% x 130% x OT h

NDR x 260% x 130% x OT h

Date

Example 1 :
Employee earns 50,000 per month, worked 4 hrs
January 1
OT on a normal day
Movable
50,000/22 days = 2,217.73 per day
Movable
2,217.73 per day/ 8 hour = 277.22 per hour
Monday nearest April 9 277.22 x 125% x 4 hours OT = 3,603.82
Monday nearest May 1
Monday nearest June 12
Example 2:
Last Monday of August Employee earns 400 per day (worked from 9am to
Movable Date
11pm)
Movable Date
400/8 hrs = 50is the regular pay rate per hour
Monday nearest November
5030
x 25% = 62.5OT is the pay rate for day
December 25
62.5 x 10% = 68.77 is the OT pay rate for hours
Monday nearest December
30 10pm to 6am
worked

10

Wage = (50 x 8hrs) + (62.5 x 4 hrs) + (68.77 x 1 hr)

Wage = 718.77
Holiday Pay of a Part-timer, the basis is any of
the following, whichever yields the highest
amount:
1. regular wage per day;
2. the basic wage on the working day preceding the
regular holiday if the employee is present or on
leave with pay on the last working day immediately
prior to the regular holiday;
3. the average of his basic wages for the last 7
working days for employees who are paid by
results;
4. the basic wage on the particular holiday, if worked

Rotation of
workers
Forced leave
Broken-time
schedule
Flexi-holiday
schedule

Where the employees are rotated or alternately

provided work within the workweek
Where the employees are required to go on lea
for several days or weeks, utilizing their leave
credits if there are any
Where the work schedule is not continuous but
number of work hours within the day or week is
reduced
Where the employees agree to avail themselve
the holidays at some other days, provided that
there is not diminution of existing benefits as a
result of such arrangement

Note: Prior to the FWA implementation, the DOLE

Regional Office should be notified through a
prescribed report form.

Attendance at lectures, meetings, training

programs, and similar activities need NOT be
counted as working time if the following three
criteria are met:
(1) Attendance is outside of the meployees regular
working hours
(2) Attendance is in fact voluntary
(3) The employee does not perform any prodructive
work during such attendance
40-hour workweek not applicable if residentphysicians in training, provided:
-there is training agreement between the resident
physician and the hospital
-training program is duly accredited or approved by
the appropriate government agency
Validity of Compressed Workweek, without OT
pay:
(a) the scheme is expressly and voluntarily
supported by majority of the employees affected
(b) in firms using substances, or operating in
conditions that are hazardous to health, a
certification is needed from an accredited safety
organization or the firms safety committee that work
beyond eight hours is within the limits or levels of
exposure set by the DOLEs occupational safety
and health standards
(c) the DOLE regional office is duly notified
Flexible Work
Agreement
Compressed
Workweek
Reduction of
workdays

Instances when
meal time may be
shortened to less
than 60, minutes,
with full pay:
NOTE: But still, meal
period must not be
less than 20 minutes
(a) where the
establishment
regularly operates not
less than 16 hours a
day

Emergency
Overtime Work:

When employer
may require wo
on a Rest Day:

(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;

(c) In the event o

abnormal pressu
work due to spec
circumstances, w
the employer can
ordinarily be
expected to reso
other measures;

(b) When it is
necessary to prevent
loss of life or property
or in case of
imminent danger to
public safety due to

(a) In case of act

or impending
emergencies cau
by serious accide
fire, flood, typhoo
earthquake, epid

Description
(b) where the work is
Refers to one where the normal workweeknon-manual
is
or does
reduced to less than 6 days but the total number
of the
not involve
work-hours is 48 hours per week shall remain
serious physical
Where the normal workdays per week areexertion
reduced
but should not last for more than 6 months

11

(c) where there is

actual or impending
emergencies or there
is urgent work to be
performed on
machineries,
equipment or
installation to avoid
serious loss which
the employer would
otherwise suffer; and
(d) where the work is
necessary to prevent
serious loss of
perishable goods

an actual or
impending
emergency in the
locality caused by
serious accidents,
fire, flood, typhoon,
earthquake,
epidemic, or other
disaster or calamity;
(c) When there is
urgent work to be
performed on
machines,
installations, or
equipment, in order
to avoid serious loss
or damage to the
employer or some
other cause of similar
nature;

or other disaster or
calamity to prevent
loss of life and
property, or imminent
danger to public
safety;

(d) When the work is

necessary to prevent
loss or damage to
perishable goods;
and

(c) To prevent loss or

(c) the work of the employees does not involve
damage to perishable
strenuous physical exertion and they are provided
goods;
with adequate coffee breaks in the morning and
afternoon;

(e) Where the

completion or
continuation of the
work started before
the eighth hour is
necessary to prevent
serious obstruction or
prejudice to the
business or
operations of the
employer.

SSS Law

VAWC

(b) In casesShortened
of urgent Meal Break upon Employees
Request:
work to be performed
on the machinery,
equipment, (a)
or the employees voluntarily agree in writing to a
shortened
installation, to avoid meal period of 30 minutes and are willing
waive the OT pay for such shortened meal
serious losstowhich
period;
the employer
would
otherwise suffer;
(b) there will be no diminution whatsoever in the
salary and other fringe benefits of the employees
existing before the effectivity of the shortened meal
period;

(d) the value of the benefits derived by the

(e) Where the
nature from the proposed work arrangement is
employees
of the work equal
requires
to or commensurate with the compensation
continuous due them for the shortened meal period as well as
operations and
the pay for 30 minutes as determined by the
the OT
stoppage ofemployees
work
concerned;
may result in
irreparable injury
(e) theorOT pay of the employees will become due
loss to the employer;
and demandable if ever they are permitted or made
and
to work beyond 4:30pm; and
(f) the effectively of the proposed working time
Under otherarrangement shall be of temporary duration as
circumstances
determined by the Sec. of Labor & Employment
analogous or similar
to the foregoing as
determined by the
Secretary of Labor
and Employment.

-female member
-at least 3 monthly contributions in the 12-month period
immediately preceding semester of her childbirth or
miscarriage
-A victim

100% of her average daily salary credit for

-60 days [for normal delivery]
-OR 78 days in case of caesarian delivery

-paid leave of absence up to 10 days

-extendible when the necessity arises as sp
protection order.

12

Magna Carta
Solo Parents
Act
Paternity Leave
Act

-woman employee
-for at least 6 months in the last 12 months
-following surgery caused by gynecological disorders
-solo parent
-service of at least 1 year

2 months with full pay based on her gross m

-married male employee

whose spouse has delivered a child or suffered
a miscarriage
-available only for the first 4 deliveries of the legitimate
spouse with whom he is cohabiting

-entitled to a paternity leave of 7 days with

-not more than 7 working days every year

13

Law
RA 1161,
as
amended
by RA 8282
(SSS Law)

Coverage
SEC. 14-A. Maternity Leave Benefit. - A
female member who has paid at least
three (3) monthly contributions in the
twelve-month period immediately
preceding the semester of her childbirth
or miscarriage

RA 9262
(VAWC)

VAWC refers to any act or a series of

acts committed by any person against a
woman who is his wife, former wife, or
against a woman with whom the person
has or had a sexual or dating
relationship, or with whom he has a
common child, or against her child
whether legitimate or illegitimate, within
or without the family abode, which result
in or is likely to result in physical, sexual,
psychological harm or suffering, or
economic abuse including threats of
such acts, battery, assault, coercion,
harassment or arbitrary deprivation of
liberty. It includes, but is not limited to,
the following acts:
A. "Physical Violence" xxx
B. "Sexual violence" xxx
C. "Psychological violence" xxx
D. "Economic abuse" xxx

RA 9710
(Magna
Carta of
Women)
RA 8972
(Solo
Parents'
Welfare Act
of 2000)

Section 18. Special Leave Benefits for

Women. - A woman employee having
rendered continuous aggregate
employment service of at least 6 months
for the last 12 months
granted to any solo parent employee
who has rendered service of at least 1
year.

Rights
shall be paid a daily maternity benefit equivalent to
100% of her average daily salary credit for
-60 days [for normal delivery]
-OR 78 days in case of caesarian delivery, subject to the following c
(a) That the employee shall have notified her employer of her pregna
probable date of her childbirth, which notice shall be transmitted to t
accordance with the rules and regulations it may provide;
(b) The full payment shall be advanced by the employer within thirty
the filing of the maternity leave application;
(c) That payment of daily maternity benefits shall be a bar to the rec
benefits Provided by this Act for the same period for which daily mat
have been received;
(d) That the maternity benefits Provided under this section shall be p
first four (4) deliveries or miscarriages;
(e) That the SSS shall immediately reimburse the employer of one h
(100%) of the amount of maternity benefits advanced to the employe
employer upon receipt of satisfactory proof of such payment and leg
(f) That if an employee member should give birth or suffer miscarriag
required contributions having been remitted for her by her employer
without the latter having been previously notified by the employer of
pregnancy, the employer shall pay to the SSS damages equivalent t
which said employee member would otherwise have been entitled to
SECTION 43. Entitled to Leave. Victims under this Act shall be en
-paid leave of absence up to 10 days in addition to other paid leave
Labor Code and Civil Service Rules and Regulations,
-extendible when the necessity arises as specified in the protection

Any employer who shall prejudice the right of the person under this
penalized in accordance with the provisions of the Labor Code and C
Rules and Regulations. Likewise, an employer who shall prejudice a
assisting a co-employee who is a victim under this Act shall likewise
discrimination.

shall be entitled to a special leave benefit of

-2 months with full pay based on her gross monthly compensation
surgery caused by gynecological disorders.

Section 8. Parental Leave. - In addition to leave privileges under ex

parental leave of
-not more than seven (7) working days every year shall be grante
parent employee who has rendered service of at least 1 year.

Who are solo parents?

(a) "Solo parent" - any individual who

14

falls under any of the following

categories:
(1) A woman who gives birth as a result
of rape and other crimes against chastity
even without a final conviction of the
offender: Provided, That the mother
keeps and raises the child;
(2) xxx death of spouse;
(3) xxx spouse is detained or is serving
sentence for a criminal conviction for at
least one (1) year;
(4) xxx physical and/or mental incapacity
of spouse as certified by a public medical
practitioner;
(5) xxx due to legal separation or de
facto separation from spouse for at least
one (1) year, as long as he/she is
entrusted with the custody of the
children;
(6) xxx due to declaration of nullity or
annulment of marriage as decreed by a
court or by a church as long as he/she is
entrusted with the custody of the
children;
(7) xxx due to abandonment of spouse
for at least one (1) year;
(8) Unmarried mother/father who has
preferred to keep and rear her/his
child/children instead of having others
care for them or give them up to a
welfare institution;
(9) Any other person who solely provides
parental care and support to a child or
children;
(10) Any family member who assumes
the responsibility of head of family as a
result of the death, abandonment,
disappearance or prolonged absence of
the parents or solo parent.
A change in the status or circumstance
of the parent claiming benefits under this
Act, such that he/she is no longer left
alone with the responsibility of
parenthood, shall terminate his/her
eligibility for these benefits.
RA 8187
(Paternity
Leave Act)

Every married male employee in

the private and public sectors shall be
entitled to a paternity leave of 7 days
with full pay for the first 4 deliveries
of the legitimate spouse with whom he is
cohabiting.
The male employee applying for

allowing him not to report for work for 7 days but continues to earn t
compensation therefor, on the condition that his spouse has deliver
suffered a miscarriage for purposes of enabling him to effectively le
support to his wife in her period of recovery and/or in the nursing of
child.

1) must be an employee at the time of delivery of child

2) he is cohabiting with his legitimate spouse at the time she gives b

15

paternity leave shall notify his employer

of the pregnancy of his legitimate spouse
and the expected date of such delivery.

miscarriage
3) he has applied for paternity leave in accordance with law
4) his wife has given birth, or suffered a miscarriage.

Wages - paid to any employee shall mean the

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
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.

(1)Household or domestic helpers, including family

drivers and persons in the personal service of
another
(2)Howeworkers engaged in needle-work
(3) workers employed in any establishment duly
registered with the National Cottage Industries and
Development Authority in accordance with RA 3470
provided that such workers perform the work in their
respective homes
(4)workers in any duly registered Cooperative when
so recommended by the Bureau of Cooperative
Development and upon approvl of the Sec. of Labor
& Employment xxx
(5)Barangay Micro-Business Enterprises (BMBEs)
whose total assets including those arising from
loans buts exclusive of the land on which the
business entitys office, plant and equiplent are
Facilities
Supplements
situation shall not be more than 3,000,000; as per
Form part of wage, thus
Does not form part of wage
BMBE Act of 2002
deductible
(6)Retail/service establishments regularly
Necessary for the laborers and
Constitute extra remuneration or
employment not more than 10 workers; as per RA
his familys existence and
special privilegages or benefits
6727 (Wage Rationalization Act)
subsistence
gven to or received by the laborer
over and above their ordinary -Note: Those employed on a seasonal basis
are not to be counted for the purpose of determining
earnings or wages
the number of workers. But those employed on
For the employees benefit
For the employers benefit
probational or those employed as learners or
apprentices (with compensation) shall be
Requirements for Deducting Value of Facilities:
considered in determining the exemption of the
CVV
enterprise
1. proof must be shown that such facilities are
The next three may be added by the regional wage
customarily furnished by the trade
boards but the addition is subject to review or
2. the provision of deductible facilities must be
approval by the NWPC.
voluntarily accepted in writing by the employee
(7) establishments adversely Affected by natural
3. facilities may be charged at fair and reasonable
calamities
value
(8) New business enterprises
(9) Distressed establishments
For non-dimunition of benefits to apply:
(1) the grant of the benefit is founded on a policy or
has ripened into a practice over a long period
(2) the practice is concsistent and deliberate
(3) the practice is not due to error in the
construction or application of a doubtful or difficult
question of law; and
(4) the diminution or discontinuance is done
unilaterally by the employer

Exceptions to the Nondiminution Rule: C-NEWBRP

(1) Contingent benefits or conditional bonus
(2) Negotiated benefits
(3) correction of Error
(4) Wage order compliance
(5) Benefits on reimbursement basis
(6) Reclassification of position
(7) Productivity incentives

Exceptions to the Coverage of the Rule on

Minimum Wages: HHCC - BRAND

16

Manner of Payment
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 absolutely prohibited even when
expressly requested by the employee.
Exceptions:
A. Payment of wages by bank
checks
Postal checks or money orders is
allowed where such manner of
wage payment is customary on
the date of the effectivity of the
Code, where it is so stipulated in
a collective agreement, or where
all of the following conditions are
met:
(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 is with
the written consent of the
employees concerned if there is
no collective agreement
authorizing the payment of wages
by bank checks.

B. Payment of wages through

ATM

expenses and no diminution

benefits and privileges as a r
of the ATM system of paymen
(g)The employer shall assum
responsibility in case the wag
protection provisions of law a
regulations are not complied
under the arrangement.
(Explanatory Bulletin issued b
DOLE Secretary Leonardo
Quisumbing dated Novembe
1996).

Payment through Banks:

-upon written permission of the majority of the
employees or workers concerned, all private
establishments, companies, business, and other
entities
with 25 or more employees and
(d) There is a bank or ATM
facility
within a radius of one (1)-located within 1 kilometer radius to a commercial,
kilometer to the place ofsavings
work; or rural bank shall pay the wages and other
benefits of their employees through any of said
banks and
-within the period of payment of wages fixed by the
Labor Code
Time of payment:
(a) Wages shall be paid not less than once every
two (2) weeks or twice a month at intervals not
(b) the employees are given
exceeding sixteen (16) days, unless payment
reasonable time to withdraw
their
cannot
be made with such regularity due to force
wages from the bank facility
majeure or circumstances beyond the employer's
which time, if done during
working
control
in which case the employer shall pay the
hours, shall be considered
wages immediately after such force majeure or
compensable hours worked;
circumstances have ceased.
(b) In case of payment of wages by results involving
work which cannot be finished in two (2) weeks,
(a) the ATM system of payment is
payment shall be made at intervals not exceeding
with the written consent of the
sixteen days in proportion to the amount of work
employees concerned;
completed. Final settlement shall be made
immediately upon completion of the work.
Place of payment
(c) The system shall allow
workers to receive their General
wages Rule: The place of payment shall be at or
near
place of undertaking.
within the period or frequencythe
and
in the amount prescribed under
Exceptions:
the Labor Code, as amended;
(e) Upon request of the
concerned employee/s, (a)
theWhen payment cannot be effected at or near the
place
employer shall issue a record of
of work by reason of the deterioration of
peace
and order conditions, or by reason of actual
payment of wages, benefits and
or
impending
emergencies caused by fire, flood,
deductions for a particular period;
epidemic
or
other
calamity rendering payment
(f) There shall be no additional
thereat impossible;

17

(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;
(d) No employer shall pay his employees in any 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.
Direct Payment of Wages
General Rule:Payment of wages shall be made
direct to the employee entitled thereto
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
authorized in writing by the individual employees
concerned; or
(c) In case of death of the employee as provided in
the succeeding Section.

Wages of deceased employee:

-shall be made to his heirs without the necessity of
intestate proceedings
-when heirs are of age, they shall execute an
affidavit attesting to their relationship to the
deceased and the fact that they are his heirs to the
exclusion of all other persons (In case any of the
heirs is a minor, such affidavit shall be executed in
his behalf by his natural guardian or next of kin)
-Upon presentation of the affidavit to the employer,
he shall make payment to the heirs as
representative of the Secretary of Labor and
Employment.

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,
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 the
third person and the employer agrees to do so;
Provided, That the latter does not receive any
pecuniary benefit, directly or indirectly, from the
transaction.
Deductions Authorized by Law: FIUDAWSS
(1) Deduction for value of meals and other Facilities
(remember 70% rule)
(2)where the EE is Insured with his consent by the
ER, deduction for the amount paid by said ER, as
premium on the insurance
(3) where the right of the employees or his Union to
check-off has been recognized by the ER or
authorized in writing by the individual employee
concerned
(4)Debts! where the EE is indebted to the ER,
where such indebtedness has become due and
demandable
(5) In court Awards, wages may be the subject of
execution or attachment, but only for debts incurred
for food, shelter, clothing and medical attendance
(6)Withholding tax
(7) Salary deduction of a member of a legally
established cooperative
(8) SSS, medicare and Pag-Ibig contributions
Deduction for loss or damage:
(a) That the employee concerned is clearly shown to
be responsible for the loss or damage;
(b) That the employee is given reasonable
opportunity to show cause why deduction should
not be made;
(c) That the amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damage; and
(d) That the deduction from the wages of the
employee does not exceed 20 percent of the
employee's wages in a week.

18

-Where the employer is engaged in a trade,

occupation or business where the practice of
making deductions or requiring deposits is
recognized to answer for the reimbursement of loss
or damage to tools, materials, or equipment
supplied by the employer to the employee
National Wages and Productivity Commission
(NWPC):
-Secretary of Labor (as Ex-officio Chair)
-Director General of NEDA (Ex-officio Vice-Chair)
-2 members representing workers
-2 members representing employers
-Executive Director of the Commission

Regional Tripartite Wages and Productivity

Boards (RTWPB):
-Regional Director of DOLE
-Regional Director of NEDA
-Regional Director of DTI
-2 members representing workers
-2 members representing employers

Wage Distortion
-shall mean 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 bases of differentiation.

Crimes under the RPC regarding Labor:

Committed by Employer

Title Nine: CRIMES AGAINST PERSONAL

LIBERTY AND SECURITY
Under Chapter One: CRIMES AGAINST LIBERTY
Art. 273. Exploitation of child labor. The penalty
of prision correccional in its minimum and medium
periods and a fine not exceeding 500 pesos shall be
imposed upon anyone who, under the pretext of
reimbursing himself of a debt incurred by an
ascendant, guardian or person entrusted with the
custody of a minor, shall, against the latter's will,
retain him in his service.
Art. 274. Services rendered under compulsion in
payment of debt. The penalty of arresto mayor in
its maximum period to prision correccional in its
minimum period shall be imposed upon any person
who, in order to require or enforce the payment of a
debt, shall compel the debtor to work for him,
against his will, as household servant or farm
laborer.
Under Chapter Two: CRIMES AGAINST
SECURITY
Art. 288. Other similar coercions; (Compulsory
purchase of merchandise and payment of wages by
means of tokens.) The penalty of arresto mayor
or a fine ranging from 200 to 500 pesos, or both,
shall be imposed upon any person, agent or officer
of any association or corporation who shall force or
compel, directly or indirectly, or shall knowingly
permit any laborer or employee employed by him or
by such firm or corporation to be forced or
compelled, to purchase merchandise or
commodities of any kind.
The same penalties shall be imposed upon any
person who shall pay the wages due a laborer or
employee employed by him, by means of tokens or
objects other than the legal tender currency of the
Philippine Islands, unless expressly requested by
the laborer or employee.
Art. 289. Formation, maintenance and prohibition of
combination of capital or labor through violence or
threats. The penalty of arresto mayor and a fine
not exceeding 300 pesos shall be imposed upon
any person who, for the purpose of organizing,
maintaining or preventing coalitions or capital or
labor, strike of laborers or lock-out of employees,
shall employ violence or threats in such a degree as
to compel or force the laborers or employers in the
free and legal exercise of their industry or work, if
the act shall not constitute a more serious offense in
accordance with the provisions of this Code.

19