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21493149 Labor Standards Notes[1]

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    CODES AND NOTES ON LABOR STANDARDS

    Art. 1. Name of Deree. T!"# Deree #!a$$ be %no&n a# t!e 'Labor Code of t!e P!"$"(("ne#'.

    Pre#"dent"a$ Deree No. ))* otherwise known as the Labor Code of the Philippines.

    So"a$ $e+"#$at"on , include laws that provide particular kinds of protection or benefits to societyor segments thereof in furtherance of social justice.

    Labor Le+"#$at"on ,consists of statutes, regulations and jurisprudence governing the relationsbetween capital and labor, by providing for employment standards and a legal framework fornegotiating, adjusting and administering those standards and other incidents of employment.

    C$a##"f"at"on# of Labor Le+"#$at"on

    1. Labor #tandard# $a& , is that which sets out the minimum terms, conditions andbenefits of employment that employers must provide or comply with and to whichemployees are entitled as a matter of legal right. s defined more specifically by

    jurisprudence, are the minimum re!uirements prescribed by e"isting laws, rules andregulations relating to wages, hours of work, cost#of#living allowance, and other monetarywelfare benefits, including occupational safety, and health standards.$ (MaternityChildren's Hospital vs. Secretary of Labor, GR No. !"#", $%ne , 1"!".

    . Labor re$at"on# $a& ,defines the status, rights and duties, and the institutionalmechanisms, that govern the individual and collective interactions of employers,employees or their representatives.

    Labor# is understood as physical toil although it does not necessarily e"clude the application ofskill, thus there is skilled and unskilled labor.

    So"a$ J-#t"e ,is neither communism, nor despotism, nor atomism nor anarchy, but thehumani%ation of laws and the e!uali%ation of social and economic forces by the &tate so that

    justice in its rational and objectively secular conception may at least be appro"imated. &ocialjustice means the promotion of the welfare of all the people, the adoption by the 'overnment ofmeasures calculated to insure economic stability of all the component elements of society,through the maintenance of a proper economic and social e!uilibrium in the interrelations of themembers of the community, constitutionally, through the adoption of measures legally justifiable,or e"tra#constitutionally, the e"ercise of powers underlying the e"istence of all governments onthe time#honored principle of sal%s pop%li est s%pre)a le*.$ (Calalan+ vs. illia)s, # -hil. .

    (hile social justice is the raison d'etre of labor laws, their basis or foundation is the police powerof the &tate.

    Po$"e Po&er , is the power of the government to enact laws, within constitutional limits, topromote the order, safety, health, morals and general welfare of society.

    )t is settled that state legislatures may enact laws for the protection of the safety and health ofemployees as an e"ercise of police power.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Art. *. Date of effet""ty. T!"# Code #!a$$ ta%e effet #"/ 02 mont!# after "t# (rom-$+at"on.

    May 13 145) P* +o. - was signed into law.

    Noember 613 145) , effectivity date of the Labor Code.

    Art. 7. De$arat"on of ba#" (o$"y. T!e State #!a$$ afford (rotet"on to $abor3 (romote f-$$em($oyment3 en#-re e8-a$ &or% o((ort-n"t"e# re+ard$e## of #e/3 rae or reed andre+-$ate t!e re$at"on# bet&een &or%er# and em($oyer#. T!e State #!a$$ a##-re t!e r"+!t# of&or%er# to #e$f9or+an":at"on3 o$$et"e bar+a"n"n+3 #e-r"ty of ten-re3 and ;-#t and!-mane ond"t"on# of &or%.

    T!e Ba#" Po$"y of t!e Labor Code

    . Protection to labor/

    -. Promote full employment/

    0. 1nsure e!ual work opportunities regardless of se", race or creed, and

    . 2egulate the relations between workers and employers

    R"+!t# of

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    employees.

    Art. ?II3 Se. the right to own, establish economic enterprises subject to the duty ofthe &tate to promote distributive justice

    Art. ?II3 Se. 1* preferential use of :ilipino labor

    Art. ?II3 Se. 1)3 (ar. * practice of all professions shall be limited to :ilipinos

    Art. ?II3 Se. 1 Congress shall not provide for the formation, organi%ation, orregulation of private corporations

    Art. ?III3 Se. 1 protect and enhance right to human dignity, reduce social, economicand political irregularities, and remove cultural ine!ualities by e!uitably diffusing wealthand political power for the common good

    Art. ?III3 Se. * promotion of social justice shall include the commitment to createeconomic opportunities

    Art. ?III3 Se. 73 (ar. 1 protection to labor, local and overseas, organi%ed andorgani%ed, and promote full employment and e!uality of employment opportunities for all

    Art. ?III3 Se. 73 (ar. * guarantee the r"+!t# of a$$ &or%er#

    ;< self#organi%ation/

    ;-< collective bargaining and negotiations/

    ;0< peaceful concerted activities, including the right to strike in accordance with law/

    ;< security of tenure/

    ;=< humane conditions of work/

    ;>< living wage/

    ;6< participate in policy and decision#making processes affecting their rights and benefits

    Art. ?III3 Se. 73 (ar. 7 shared responsibility7 voluntary modes in settling disputes

    Art. ?III3 Se. 73 (ar. ) regulate the relations between workers and employers,recogni%ing the right of labor to its /%st share in the fr%its of prod%ctionand the ri+ht of

    enterprises to reasonable ret%rns on invest)ents and to e*pansion and +ro0th.0Con#t"t-t"ona$ ba$ane bet&een t!e r"+!t# of &or%er# and em($oyer#2

    3ob is a property, and no person shall be deprived of life, liberty, and property without dueprocess.

    8hrough distributive justice, labor must receive what is due them for the return of investment.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Art. ). Con#tr-t"on "n faor of $abor. A$$ do-bt# "n t!e "m($ementat"on and "nter(retat"on oft!e (ro"#"on# of t!"# Code3 "n$-d"n+ "t# "m($ement"n+ r-$e# and re+-$at"on#3 #!a$$ bere#o$ed "n faor of $abor.

    8he &upreme Court adopts the liberal approach which favors the e"ercise of labor rights.

    8he labor law is liberally construed in favor of the workers and strictly construed against theemployers.

    8hose who have less in life should have more in law.

    Mana+ement R"+!t#

    )t should not be supposed that every labor dispute will be automatically decided in favor of labor.

    ?anagement has also its own rights which are entitled to respect and enforcement in the interestof simple fair play.

    8he law, in protecting the rights of the laborer, authori%es neither oppression nor self#destructionof the employer.

    R"+!t to Ret-rn of Ine#tment# 0ROI2 , the employer has the right to recover hisinvestments and to make profit. 8he Constitution provides that the &tate shall regulatethe relations between workers and employers, recogni%ing the right of labor to its justshare... and the right of enterprises to reasonable returns on investments, and toe"pansion and growth.

    T!e R"+!t to Pre#r"be R-$e# , employers have the right to make reasonable rules and

    regulations for the government of their employees, and when employees, with knowledgeof an established rule, enter the service, the rule becomes part of the contract ofemployment.

    T!e R"+!t to Se$et Em($oyee# , an employer has a right to select his employees andto decide when to engage them. 8he &tate has no right to interfere in a privateemployment/ it cannot interfere with the liberty of contract with respect to labor e"cept inthe e"ercise of the police power. )f the employer can compel the employee to workagainst the latter@s will, this is servitude. )f the employee can compel the employer to givehim work against the employer@s will, this is oppression.

    R"+!t to Tran#fer or D"#!ar+e Em($oyee# , the employer has the perfect right totransfer, reduce or lay off personnel in order to minimi%e e"penses and to insure the

    stability of the business, and even to close the business, provided the transfer ordismissal is not abused but is done in good faith and is due to causes beyond control. 8ohold otherwise would be oppressive and inhuman.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Art. @. R-$e# and re+-$at"on#. T!e De(artment of Labor and ot!er +oernment a+en"e#

    !ar+ed &"t! t!e adm"n"#trat"on and enforement of t!"# Code or any of "t# (art# #!a$$(rom-$+ate t!e nee##ary "m($ement"n+ r-$e# and re+-$at"on#. S-! r-$e# and re+-$at"on##!a$$ beome effet"e f"fteen 01@2 day# after anno-nement of t!e"r ado(t"on "nne(a(er# of +enera$ "r-$at"on.

    8he Labor Code itself in rt. = vests the *epartment of Labor and 1mployment with rule#makingpowers in the enforcement thereof.

    ART. .Applicability.9 A$$ r"+!t# and benef"t# +ranted to &or%er# -nder t!"# Code #!a$$3e/e(t a# may ot!er&"#e be (ro"ded !ere"n3 a(($y a$"%e to a$$ &or%er#3 &!et!era+r"-$t-ra$ or non9a+r"-$t-ra$. (As amended by Presidential Decree No. 570-A, November

    1, 1974.

    8he Code is applicable to all employees in private sector and government corporations withoutoriginal charter.

    Ander the present state of the law, the test in determining whether a government#owned orcontrolled corporation is subject to the Civil &ervice Law is the manner of its creation.!overnment corporations created by special (ori"inal c#arter $rom %on"ress are s&b'ectto %ivil ervice r&les, while t#ose incorporated &nder t#e "eneral %orporation )a* arecovered by t#e )abor %ode.

    8he government#owned#and#controlled corporations with original charter$ refer to corporations

    chartered by special law as distinguished from corporation organi%ed under our generalincorporation statute, the Corporation Code.

    (hile government employees are allowed under the 456 Constitution to organi%e and join unionof their choice, there is no law permitting them to strike.

    Art. 1*>. "#"tor"a$ and enforement (o&er.

    "#"tor"a$ Po&er of t!e Seretary of Labor and Em($oyment or !"# d-$y a-t!or":ed

    re(re#entat"e#3 "n$-d"n+ $abor re+-$at"on off"er#. ccess to employerBs records and premises at any time of the day or night whenever

    work is being undertaken therein/

    -. 8o copy from employer@s records/

    0. 8o !uestion any employee

    . 8o investigate any fact, condition or matter which may be necessary to determineviolations or which may aid in the enforcement of this Code

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Enforement Po&er of t!e Seretary of Labor and Em($oyment or !"# d-$y a-t!or":ed

    re(re#entat"e#

    . 8o to issue compliance orders to give effect to the labor standards provisions of this Codeand other labor legislation based on the findings of labor employment and enforcementofficers or industrial safety engineers made in the course of inspection/

    -. 8o issue writs of e"ecution to the appropriate authority for the enforcement of their orders/

    0. 8he &ecretary of Labor and 1mployment to order stoppage of work or suspension ofoperations of any unit or department of an establishment when non#compliance with thelaw or implementing rules and regulations poses grave and imminent danger to thehealth and safety of workers in the workplace.

    . 8he &ecretary of Labor and 1mployment may re!uire employers to keep and maintainsuch employment records as may be necessary in aid of his visitorial and enforcement

    powers under this Code.

    )t is the right of employer to ask authority from visiting labor personnel. :ailure may result to awaiver.

    1mployer@s remedy to contest the findings of the &ecretary of Labor and 1mployment or his dulyauthori%ed representatives is the presentation of documentary evidence, i.e. payrolls, &&&payment receipts.

    n order issued by the duly authori%ed representative of the &ecretary of Labor and 1mploymentunder this rticle may be appealed to the latter. )n case said order involves a monetary award, anappeal by the employer may be perfected only upon the posting of a cash or surety bond issuedby a reputable bonding company duly accredited by the &ecretary of Labor and 1mployment inthe amount e!uivalent to the monetary award in the order appealed from.

    (ithin twenty#four hours, a hearing shall be conducted to determine whether an order for thestoppage of work or suspension of operations shall be lifted or not. )n case the violation isattributable to the fault of the employer, he shall pay the employees concerned their salaries orwages during the period of such stoppage of work or suspension of operation.

    )t shall be unlawful for any person or entity to obstruct, impede, delay or otherwise renderineffective the orders of the &ecretary of Labor and 1mployment or his duly authori%edrepresentatives issued pursuant to the authority granted under this rticle, and no inferior court orentity shall issue temporary or permanent injunction or restraining order or otherwise assume

    jurisdiction over any case involving the enforcement orders issued in accordance with this rticle.

    ny government employee found guilty of violation of, or abuse of authority, under this rticleshall, after appropriate administrative investigation, be subject to summary dismissal from theservice.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Art. 1*4. Reoery of &a+e#3 #"m($e money $a"m# and ot!er benef"t#.

    T!e Re+"ona$ D"retor of t!e De(artment of Labor and Em($oyment or any of t!e d-$ya-t!or":ed !ear"n+ off"er# of t!e De(artment "# em(o&ered , through summary proceedingand after due notice, to hear and decide

    . any matter involving the recovery of wages and other monetary claims and benefits,including legal interest, provided that the aggregate money claims of each employee orhousehelper does not e"ceed :ive thousand pesos ;P=,.6=, ?arch -, 454. Ca("ta$":at"on.

    ll applicants for authority to hire or renewal of license to recruit are re!uired to have suchsubstantial capitali3ation as determined by t#e ecretary o$ )abor.

    Art. *4. Non9tran#ferab"$"ty of $"en#e or a-t!or"ty.

    No license or a&t#ority s#all be &seddirectly or indirectly by any person ot#er t#an t#e one in*#ose $avor it *as iss&ed or at any place ot#er t#an t#at stated in t#e license or a&t#oritybe transferred, conveyed or assigned to any other person or entity. ny trans$erof businessaddress, appointment or designation of any agent or representative including the establishment ofadditional offices anywhere s#all be s&b'ect to t#e prior approval o$ t#e Department o$)abor.

    Art. 76. Re+"#trat"on fee#.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    #e ecretary o$ )abor s#all prom&l"ate a sc#ed&le o$ $eesfor the registration of allapplicants for license or authority.

    Art. 71. Bond#.

    All applicants $or license or a&t#ority s#all post s&c# cas# and s&rety bonds asdetermined by t#e ecretary o$ )abor to "&arantee compliance with prescribed recruitmentprocedures, rules and regulations, and terms and conditions of employment as may beappropriate.

    Art. 7*. Fee# to be (a"d by &or%er#.

    Any person applyin"with a private fee#charging employment agency for employmentassistance s#all not be c#ar"ed any $ee &ntil #e #as obtained employment through its effortsor has actually commenced employment. &c# $ee s#all be al*ays covered *it# t#eappropriate receipt clearly showing the amount paid. 8he &ecretary of Labor shall promulgate aschedule of allowable fees.

    Art. 77. Re(ort# on em($oyment #tat-#.

    =#enever t#e p&blic interest re&ires, t#e ecretary o$ )abor may direct all persons orentities within the coverage of this 8itleto s&bmit a report on the status of employment,including job vacancies, details of job re!uisitions, separation from jobs, wages, other terms andconditions and other employment data.

    Art. 7). Pro!"b"ted (rat"e#.

    8hese prohibited acts constitutes illegal recruitment as redefined by 2 +o. 5-.

    Art. 7@. S-#(en#"on andor ane$$at"on of $"en#e or a-t!or"ty.

    #e >inister o$ )abor s#all #ave t#e po*er to s&spend or cancel any license or a&t#oritytorecruit employees for overseas employment for violation of rules and regulations issued by the?inistry of Labor, the 9verseas 1mployment *evelopment Doard, or for violation of the provisionsof this and other applicable laws, 'eneral 9rders and Letters of )nstructions.

    recruitment agency is solidarily liable for the unpaid salaries of a worker it recruited foremployment with foreign principal.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    1ven if the recruitment agency and the principal had already ended their agencyagreement at the tim the worker was injured, the recruitment agency may still be sued forviolation of the employment contract, if no notice of the agency agreement@s terminationwas given to the employee.

    C!a(ter IIIMISCELLANEO=S PROISIONS

    Art. 7. Re+-$atory (o&er.

    #e ecretary o$ )abor s#all #ave t#e po*er to restrict and re"&late t#e recr&itment andplacement activities o$ all a"encieswithin the coverage of this 8itle and is hereby authori%ed toissue orders and promulgate rules and regulations to carry out the objectives and implement theprovisions of this 8itle.

    Art. 75. "#"tor"a$ Po&er.

    #e ecretary o$ )abor or #is d&ly a&t#ori3ed representatives may, at any time, inspect t#epremises, boo/s o$ acco&nts and records o$ any personor entity covered by this 8itle,re&ire it to s&bmit reports re"&larly on prescribed $orms, and act on violation o$ any

    provisions o$ t#is itle.

    Art. 7>. I$$e+a$ rer-"tment.

    &uch acts are already contained in 2 +o. 5-.

    T"t$e IIEMPLOMENT OF NON9RESIDENT ALIENS

    Art. )6. Em($oyment (erm"t of non9re#"dent a$"en#.

    ny alien seeking admission to the Philippines for employment purposes and any domestic orforeign employer who desires to engage an alien for employment in the Philippines shall obtainan employment permit from the *epartment of Labor.

    #e employment permit may be iss&ed to a non-resident alien or to t#e applicant employera$ter a determination o$ t#e non-availability o$ a person in t#e P#ilippines *#o iscompetent, able and *illin"at the time of application to perform the services for which the alienis desired.

    or an enterprise re"isteredin preferred areas of investments, said employment permit may

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    be iss&ed &pon recommendation o$ t#e "overnment a"ency c#ar"ed *it# t#e s&pervisiono$ said re"istered enterprise.

    Art. )1. Pro!"b"t"on a+a"n#t tran#fer of em($oyment

    fter the issuance of an employment permit, the alien s#all not trans$er to anot#er 'ob orc#an"e #is employer *it#o&t prior approval o$ t#e ecretary o$ )abor.

    ny non#resident alien who shall take up employment in violationof the provision of this 8itle andits implementing rules and regulations s#all be p&nis#ed in accordance *it# t#e provisionso$ Articles 8?9 and 890 o$ t#e )abor %ode.

    )n addition, t#e alien *or/er s#all be s&b'ect to deportation a$ter service o$ #is sentence.

    Art. )*. S-bm"##"on of $"#t.

    Any employer employin" non-resident $orei"n nationalson the effective date of this Codes#all s&bmit a list o$ s&c# nationals to t#e ecretary o$ )abor *it#in t#irty (;0 days """".8he &ecretary of Labor shall then determine if they are entitled to an employment permit.

    Perm"t# to be "##-ed

    Alien mployment Permit (AP for non#resident alienAlien mployment 2e"istration %erti$icate (A2% for resident alien

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    BOO T

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    Art. 1. Content# of a((rent"e#!"( a+reement#.

    pprenticeship agreements, including the wage rates of apprentices, shall conform to the rulesissued by the &ecretary of Labor and 1mployment. #e period o$ apprentices#ip s#all note6ceed si6 mont#s. pprenticeship agreements providing for wage rates below the legalminim&m *a"e, whichin no case s#all start belo* 75 percent o$ t#e applicable minim&m*a"e, may be entered into only in accordance with apprenticeship programs duly approved bythe &ecretary of Labor and 1mployment. 8he *epartment shall develop standard modelprograms of apprenticeship.

    Art. @. Ine#t"+at"on of "o$at"on of a((rent"e#!"( a+reement.

    @pon complaint o$ any interested person or &pon its o*n initiative, t#e appropriate a"encyo$ t#e Department o$ )abor and mployment or its a&t#ori3ed representative s#allinvesti"ate any violation o$ an apprentices#ip a"reement pursuant to such rules andregulations as may be prescribed by the &ecretary of Labor and 1mployment.

    Art. . A((ea$ to t!e Seretary of Labor and Em($oyment.

    8he decision of the authori%ed agency of the *epartment of Labor and 1mployment may beappealed by any aggrieved person to the &ecretary of Labor and 1mployment within five ;=< daysfrom receipt of the decision. #e decision o$ t#e ecretary o$ )abor and mployment s#allbe $inal and e6ec&tory.

    Art. 5. E/!a-#t"on of adm"n"#trat"e remed"e#.

    +o person shall institute any action for the enforcement of any apprenticeship agreement ordamages for breach of any such agreement, unless he has e"hausted all available administrativeremedies.

    Art. 56. o$-ntary or+an":at"on of a((rent"e#!"( (ro+ram# e/em(t"on#.

    Genera$ r-$e

    8he organi%ation of apprenticeship program shall be primarily a voluntary undertaking byemployers/

    1"ceptions7

    ;a< =#en national sec&rity or partic&lar re&irements o$ economic development sodemand, the -resident of the -hilippines )ay re4%ire co)p%lsory trainin+ of apprenticesin certain trades, occupations, jobs or employment levels where shortage of trainedmanpower is deemed critical as deter)ined by the Secretary of Labor and 2)ploy)ent.

    ppropriate rules in this connection shall be promulgated by the &ecretary of Labor and

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    1mployment as the need arises/ and

    ;b< =#ere services o$ $orei"n tec#nicians are &tili3ed by private companies inapprenticeable trades, said companies are re!uired to set up appropriateapprenticeship programs.

    Art. 51. Ded-t"b"$"ty of tra"n"n+ o#t#

    n additional deduction from ta"able income of one-#al$ (18of the value of labor traininge"penses incurred for developing the productivity and efficiency of apprentices shall be granted tothe person or enterprise organi%ing an apprenticeship program7

    Provided7 8hat suchpro"ram is d&ly reco"ni3ed by t#e Department o$ )abor andmployment7

    Provided, further, 8hat such ded&ction s#all not e6ceed ten (10: percent o$direct labor *a"e7 and

    Provided, finally, 8hat t#e personor enterprise *#o *is#es to availhimself or

    itself of this incentive shouldpay #is apprentices t#e minim&m *a"e.

    Art. 5*. A((rent"e# &"t!o-t om(en#at"on.

    8he &ecretary of Labor and 1mployment may authori%e the #irin" o$ apprentices *it#o&tcompensation

    ;a< whose training on the job is re!uired by

    the school or

    training program curriculum

    ;b< or as re!uisite for

    graduation or

    board e"amination.

    Note#

    )n relation to rt. 6-, the )mplementing 2ules provide that t#ere is no employer-employee relations#ip bet*een st&dentson one hand, and sc#oolson the other,*#ere t#ere is *ritten a"reementunder which the former agree to work for the latter ine"change for the privilege to study free of charge,provided t#e st&dents are "iven realopport&nities to $inis# t#eir c#osen co&rsesunder such agreement.

    Fowever, in the case of F"$amer C!r"#t"an In#t"t-te #. on. Intermed"ate A(e$$ate

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Co-rt3 et. a$.3'2 +o. 6=-, ugust 6, 44-, the &upreme Court that the applicable lawwas rt. -5 of the Civil Code and not the Labor Code@s implementing rule. @nder Art.81?0, an in'&red party s#all #ave reco&rse a"ainst t#e servant as *ell as t#e

    petitioners sc#ool $or *#om, at t#e time o$ incident, t#e servant *as per$ormin" anact in $&rt#erance o$ t#e interest and $or t#e bene$it o$ t#e sc#ool.

    Fo-r9Fo$d Te#t "n Determ"n"n+ Em($oyer9Em($oyee Re$at"on#!"(

    . the selection and engagement of the employee

    -. the payment of wages

    0. the power of dismissal

    . the employer@s power to control with respect to the means and methods by which the

    work is to be accomplished ;Drotherhood vs. Gamora1. E$"+"b"$"ty for a((rent"e#!"(.

    &ubject to the appropriate provisions of this Code,!and"a((ed &or%er# may be !"red a#apprenticesorlearners "f

    t#eir #andicap is not s&c# as to e$$ectively impede t#e per$ormance o$ 'oboperations in t#e partic&lar occ&pations $or *#ic# t#ey are #ired.

    Art. 17@. D"#r"m"nat"on (ro!"b"ted.

    )t shall be &nla*$&l $or any employer to discriminate a"ainst any *oman employee withrespect to terms and conditions of employment solely on acco&nt o$ #er se6.

    Art. 17. St"(-$at"on a+a"n#t marr"a+e.

    )t shall be&nla*$&l $or an employer to re&ire as a condition o$ employment orcontin&ation o$ employment t#at a *oman employee s#all not "et married, or to stipulatee"pressly ortacitly that upon getting married, a woman employee shall be deemed resigned orseparated, or to actually dismiss, discharge, discriminate or ot#er*ise pre'&dice a *omanemployee merely by reason o$ #er marria"e.

    Art. 174. M"n"m-m em($oyab$e a+e.

    ;a< +o child below fifteen ;=< years of age shall be employed, e"cept when he works directlyunder the sole responsibility of his parents or guardian, and his employment does not inany way interfere with his schooling.

    ;b< ny person between fifteen ;=< and eighteen ;5< years of age may be employed forsuch number of hours and such periods of the day as determined by the &ecretary ofLabor and 1mployment in appropriate regulations.

    ;c< 8he foregoing provisions shall in no case allow the employment of a person beloweighteen ;5< years of age in an undertaking which is ha%ardous or deleterious in natureas determined by the &ecretary of Labor and 1mployment.

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    Art. 1)6. Pro!"b"t"on a+a"n#t !"$d d"#r"m"nat"on.

    No employer s#all discriminate against any person in respect to terms and conditions ofemployment on acco&nt o$ #is a"e.

    REP=BLIC ACT NO. 4*71La& E$"m"nat"n+ t!e

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    H;c< 8he employer s#all $orm&late and implement,subject to the approval and supervision ofcompetent authorities, a contin&in" pro"ram $or trainin" and s/ills ac&isition o$ t#e c#ild.

    Hn t#e above-e6ceptional caseswhere any such child may be employed, t#e employer s#all$irst sec&re, be$ore en"a"in" s&c# c#ild, a *or/ permit $rom t#e Department o$ )abor andmployment which shall ensure observance of the above re!uirements.

    H:or purposes of this rticle, the term

    C!"$d shall apply to all persons under eighteen ;5< years of age.$

    Set"on 7. 8he same ct, as amended, is hereby further amended by adding new sections to bedenominated as &ections -#, -#D, -#C, and -#* to read as follows7

    'Se. *9A. Co&rs o$ =or/ o$ a =or/in" %#ild.# Ander the e"ceptions provided in &ection - ofthis ct, as amended7

    H;< child belo* $i$teen (15 years o$ a"e may be allowed to work for not more t#an t*enty(80 #o&rs a *ee/7 Provided,8hat the *or/ s#all not be more t#an $o&r (4 #o&rs at any"iven day/

    H;-< child $i$teen (15 years o$ a"e b&t belo* ei"#teen (1? shall notbe allowed to work $ormore t#an ei"#t (? #o&rs a day, and in no case beyond $orty (40 #o&rs a *ee//

    ;0

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    H;-< #e &se, proc&rin", o$$erin" or e6posin" o$ a c#ild $or prostit&tion, $or t#e prod&ctiono$ porno"rap#y or $or porno"rap#ic per$ormances/ or

    H;0< #e &se, proc&rin" or o$$erin" o$ a c#ild $or ille"al or illicit activities , including theproduction and trafficking of dangerous drugs and volatile substances prohibited under e"istinglaws/ or

    H;< =or/ *#ic#, by its nature or the circumstances in which it is carried out, is #a3ardo&s orli/ely to be #arm$&l to t#e #ealt#, sa$ety or morals o$ c#ildren, such that it7

    Ha< *ebases, degrades or demeans the intrinsic worth and dignity of a child as a human being/ or

    Hb< 1"poses the child to physical, emotional or se"ual abuse, or is found to be highly stressfulpsychologically or may prejudice morals/ or

    Hc< )s performed underground, underwater or at dangerous heights/ or

    Hd< )nvolves the use of dangerous machinery, e!uipment and tools such as power#driven ore"plosive power#actuated tools/ or

    He< 1"poses the child to physical danger such as, but not limited to the dangerous feats ofbalancing, physical strength or contortion, or which re!uires the manual transport of heavy loads/or

    Hf< )s performed in an unhealthy environment e"posing the child to ha%ardous working conditions,elements, substances, co#agents or processes involving ioni%ing, radiation, fire, flammablesubstances, no"ious components and the like, or to e"treme temperatures, noise levels, orvibrations/ or

    Hg< )s performed under particularly difficult conditions/ or

    Hh< 1"poses the child to biological agents such as bacteria, fungi, viruses, proto%oans, nematodesand other parasites/ or

    Hi< )nvolves the manufacture or handling of e"plosives and other pyrotechnic products.H

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    Set"on @.&ection of the same ct is hereby amended to read as follows7

    'Se. 1). Pro#ibition on t#e mployment o$ %#ildren in %ertain Advertisements.#

    No c#ild s#all be employed as a model in any advertisement directly or indirectlypromotin" alco#olic bevera"es, into6icatin" drin/s, tobacco and its byprod&cts, "amblin"or any $orm o$ violence or porno"rap#y.H

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    BOO TREECONDITIONS OF EMPLOMENT

    T"t$e I

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    8he normal #o&rs o$ *or/ of any employee shall not e6ceed ei"#t (? #o&rs a day.

    Genera$ R-$e a(($"ab$e to !ea$t! (er#onne$ Fealth personnel in cities and municipalities with

    a population of at least one million ;,,< or in hospitals and clinics with a bed capacity of atleast one hundred ;< shall hold regular office hours for eight ;5< hours a day, for five ;=< days aweek, e"clusive of time for meals,

    E/e(t"on (here the e6i"encies o$ t#e service re!uire that such personnel work for si6 (days or $orty-ei"#t (4? #o&rs, in which case, they shall be entitled to an additionalcompensation o$ at least t#irty percent (;0: o$ t#eir re"&lar *a"e $or *or/ on t#e si6t#day.

    Cealt# personnelfor the purpose of rt. 05 of the Labor Code, they incl&de residentp#ysicians, n&rses, n&tritionists, dietitians, p#armacists, social *or/ers, laboratorytec#nicians, paramedical tec#nicians, psyc#olo"ists, mid*ives, attendants and all ot#er#ospital or clinic personnel.

    Art. >). o-r# &or%ed.

    Co&rs *or/ed shall incl&de7

    ;a< all time during which an employee is re!uired to be on duty or to be at a prescribedworkplace/ and

    ;b< all time during which an employee is suffered or permitted to work.

    ;c< 2est periods of short duration during working hours.

    2est periods o$ s#ort d&ration d&rin" *or/in" #o&rs s#all be co&nted as #o&rs *or/ed.

    Com(re##ed days but each workday e"ceeds 5 hours. :or the hours e"ceeding 5 in a workday, theemployees waive their 98 pay because, in return, they will no longer incur transport andother e"penses.

    llowed on condition that it is freely agreed upon between the employer and majority of

    the employees. :urther, the arrangement should not diminish the employees@ monthly ordaily pay or their established employment benefits.

    1"tended workday in C(( should not e"ceed - work hours. (ork e"ceeding - hrs ina day or 5 hrs in a week should be considered 98.

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    ;a< (aiting time spent by an employee shall be considered as working time if7

    waiting is an integral part of his work, or

    the employer is re!uired or engaged by the employer to wait.

    ;b< (orking while on call an employee who is re!uired to remain on call in the employer@spremises or so close thereto that he cannot use the time effectively and gainfully for hisown purpose.

    Art. >@. Mea$ (er"od#.

    &ubject to such regulations as the &ecretary of Labor may prescribe, it shall be the duty of everyemployer to give his employees not less t#an si6ty (0 min&tes time-o$$ for their re"&larmeals.

    Genera$ R-$e Not less t#an 1 #o&r time-o$$for regular meals is non-compensable.

    E/e(t ?eal period of not less t#an 80 min&tesin the following cases is compensablehoursworked.

    ;a< (here the *or/ is nonman&alwork in nature ordoes notinvolve stren&o&s p#ysicale6ertion/

    ;b< (here the establis#mentregularly operates not less t#an si6teen #o&rsa day/

    ;c< )n cases of act&al or impendin" emer"encies or t#ere is &r"ent *or/to be performedon machineries, e!uipment or installations to avoid serious loss which the employerwould otherwise suffer/ and,

    ;d< (here the work is necessary toprevent serio&s loss o$ peris#able "oods.

    2est periods or co$$ee brea/srunning from = to - minutes are considered ascompensable *or/in" time.

    8o shorten meal time to less than - minutes is not allowed. )f the so#called meal time$

    is less than - minutes, it becomes only a rest period.

    Art. >. N"+!t #!"ft d"fferent"a$.

    1very employee shall bepaid a ni"#t s#i$t di$$erential of not less t#an ten percent (10: o$#is re"&lar *a"e $or eac# #o&r o$ *or/ per$ormed bet*een ten oEcloc/ in t#e evenin" andsi6 oEcloc/ in t#e mornin".

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    )f work done between pm and > am is 98 work, the +&* should be based on the 98rate.

    Em($oyee# Not Coered by N"+!t S!"ft D"fferent"a$

    . government employees/

    -. retail and service establishments regularly employing not more than five ;=< workers/

    0. managerial employees/

    . field personnel and other employees whose time and performance is unsupervised by theemployer/ and,

    =. domestic helpers, and persons in the personal service of another.

    Art. >5. Oert"me &or%.

    (ork may be performed beyond eight ;5< hours a day provided that the employee is paid for theovertime *or/, an additional compensation e&ivalent to #is re"&lar *a"e pl&s at leastt*enty-$ive percent (85: t#ereo$. (ork performed beyond ei"#t #o&rs on a #oliday or restday s#all be paid an additional compensation e&ivalent to t#e rate o$ t#e $irst ei"#t #o&rson a #oliday or rest day pl&s at least t#irty percent (;0: t#ereo$.

    Art. >>. =ndert"me not off#et by oert"me.

    @ndertime *or/ on any particular day s#all not be o$$set by overtime *or/ on any other day.Permission given to the employee to go on leave on some other day of the week shall not e"emptthe employer from paying the additional compensation re!uired in this Chapter.

    Rea#on 9ffsetting the undertime hours against 98 hours would result in undue deprivation o$t#e employeeBs e6tra pay $or

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    0. (hen there is &r"ent *or/ to be per$ormed on mac#ines, installations, or e!uipment,in order to avoid serio&s loss or dama"e to t#e employeror some other cause ofsimilar nature/

    . (hen the work is necessary to prevent loss or dama"e to peris#able "oods/ and,

    =. =#ere t#e completion or contin&ation o$ t#e *or/ started be$ore t#e ei"#t# #o&r isnecessary to prevent serio&s obstr&ction or pre'&dice to t#e b&siness or operationsof the employer.

    >. (hen overtime work is necessary to avail o$ $avorable *eat#er or environmentalconditionswhere performance or !uality or work is dependent thereon.

    ny employee re!uired to render overtime *or/under this rticle s#all be paid t#e additionalcompensationre!uired in this Chapter.

    Art. 46. Com(-tat"on of add"t"ona$ om(en#at"on.

    or p&rposes o$ comp&tin" overtime and ot#er additional rem&nerationas re!uired by thisChapter, there"&lar *a"eof an employee s#all incl&de t#e cas# *a"e only, withoutdeduction on account of facilities provided by the employer.

    Re+-$ar

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    grounds will inevitably result in serio&s pre'&dice or obstr&ction to t#e operationsof the undertaking and the employer cannot normally be e"pected to resort to otherremedial measures,t#e employer may so sc#ed&le t#e *ee/ly rest day o$ #isc#oice $or at least 8 days in a mont#.

    c#ed&les o$ 2est Dayshall be made known to the employees through *ritten noticesposted conspicuously in the work place at least one *ee/ be$ore t#ey becomee$$ective.

    Art. 4*.

    . )n case of act&al or impendin" emer"encies caused by serious accident, fire, flood,typhoon, earth!uake, epidemic or other disaster or calamity to prevent loss of life andproperty, or imminent danger to public safety/

    -. n cases o$ &r"ent *or/ to be per$ormedon the machinery, e!uipment, or installation,to avoid serious loss which the employer would otherwise suffer/

    0. )n the event of abnormal press&re o$ *or/due to special circumstances, where theemployer cannot ordinarily be e"pected to resort to other measures/

    . 8oprevent loss or dama"e to peris#able "oods/

    =. (here the nat&re o$ t#e *or/re!uires continuous operations and the stoppage of workmay result in irreparable injury or loss to the employer/

    >. Ander ot#er circ&mstances analo"o&sor similar to the foregoing as determined by the&ecretary of Labor and 1mployment/ and

    6. (hen the work is necessary to avail o$ $avorable *eat#er or environmentalconditions where performance or !uality of work is dependent thereon.

    =#en an employee vol&nteers to *or/ on #is rest dayunder other circumstances, #es#all e6press s&c# desire in *ritin", he shall e"press such desire in writing, subject topayment of additional compensation.

    Art. 47. Com(en#at"on for re#t day3 S-nday or !o$"day &or%.

    =#ere an employee is made or permitted to *or/ on #is sc#ed&led rest day, #e s#all bepaid an additional compensation o$ at least t#irty percent (;0: o$ #is re"&lar *a"e.nemployee shall be entitled to such additional compensation for work performed on &unday onlywhen it is his established rest day.

    (hen the nature of the work of the employee is such that he has no regular workdays and noregular rest days can be scheduled, he shall be paid an additional compensation of at least thirty

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    percent ;0I< of his regular wage for work performed on &undays and holidays.

    =or/ per$ormed on any special #oliday s#all be paid an additional compensation o$ atleast t#irty percent (;0: o$ t#e re"&lar *a"e o$ t#e employee. (here such #oliday *or/$alls on t#e employeeEs sc#ed&led rest day,he shall be entitled to an additional compensationof at least $i$ty per cent (50: o$ #is re"&lar *a"e.

    (here the collective bargaining agreement or other applicable employment contract stipulatesthe payment of a higher premium pay than that prescribed under this rticle, the employer shallpay such higher rate

    C!a(ter IIIOLIDAS3 SERICE INCENTIE LEAES AND SERICE CARGES

    Art. 4). R"+!t to !o$"day (ay.

    1very worker shall be paid his regular daily wage during regular holidays, e"cept in retail andservice establishments regularly employing less than ten ;< workers/8he employer may re!uire an employee to work on any holiday but such employee shall be paida compensation e!uivalent to twice his regular rate/ and

    s used in this rticle, HholidayH includes7 +ew JearBs *ay, ?aundy 8hursday, 'ood :riday, theninth of pril, the first of ?ay, the twelfth of 3une, the fourth of 3uly, the thirtieth of +ovember, the

    twenty#fifth and thirtieth of *ecember and the day designated by law for holding a generalelection.

    Em($oyee# Not Coered by o$"day# Pay

    . government employees/

    -. retail and service establishments regularly employing less than ten ;< workers/

    0. managerial employees/

    . field personnel and other employees whose time and performance is unsupervised by theemployer/ and,

    =. domestic helpers, and persons in the personal service of another.

    Ab#ene#

    1mployee on leave of absence with pay entitled to the benefit provided herein.

    1mployee on leave of absence without pay on the day immediately preceding a regularholiday may not be paid the re!uired holiday pay if he has not worked on such regularholiday.

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    (here the day immediately preceding the holiday is a non#working day in theestablishment or the scheduled rest day of the employee, he shall not be deemed to beon leave of absence on that day, in which case he shall be entitled to the holiday pay if heworked on the day immediately preceding the non#working day or rest day.

    emporary or Periodic #&tdo*n and emporary %essation o$ =or/ (.e inventory,repair o$ e&ipment regular holidays falling within this period is compensable.

    emporary or Periodic #&tdo*n and emporary %essation o$ =or/ D&e to&siness 2everses regular holidays falling within this period is not compensable.

    o$"day Pay of Certa"n Em($oyee#

    ;a< Pr"ate S!oo$ Tea!er# including faculty members of college and universities may

    not be paid regular holidays during semestral vacations. Paid for the regular holidaysduring Christmas vacation.

    ;b< Em($oyee Pa"d by Re#-$t# ;Payment on Piece (ork< holiday pay shall not be lessthan his average daily earnings for the last 6 actual working days preceding the regularholiday/ Provided however, that in no case shall the holiday pay be less than theapplicable statutory minimum wage rate.

    ;c< Sea#ona$

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    . Christmas *ay # *ec. -=. 2i%al *ay # *ec. 0

    S(e"a$ Day#

    . &pecial +on#working *ays-. &pecial Public Folidays0. &pecial national Foliday. ll &aintBs *ay # +ov. =. Last *ay of the Jear # *ec. 0>. +inoy !uino *ay # ug. -

    R-$e# on Payment of o$"day Pay

    1. Re+-$ar o$"day#

    a. )f it is employeeBs regular work day7

    Anworked7 # I

    (orked7o st5 hrs # -I

    o 1"cess of 5 hrs # 0I of hourly rate on said day

    b. )f it is employeeBs rest day7

    Anworked7 # I

    (orked7o st5 hrs # 0I of -I

    o 1"cess of 5 hrs # 0I of hourly rate on said day

    *. S(e"a$ Day#

    Anworked no pay unless there is a favorable company policy, practice orCD granting payment of wages on special days even if unworked.

    (orked

    o st5 hrs # 0I of the daily rate of I

    o 1"cess of 5 hrs # 0I of hourly rate on said day

    :alling on employeeBs rest day and if worked

    o st5 hrs # =I of the daily rate of I

    o 1"cess of 5 hrs # 0I of hourly rate on said day

    7. S(e"a$

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    service incentive leave o$ $ive days *it# pay.8his provision s#all not apply tothose who are already enjoying the benefit herein provided,t#ose en'oyin" vacation leave *it# pay o$ at least $ive daysand t#ose employed inestablis#ments re"&larly employin" less t#an ten employees or in establis#mentse6empted $rom "rantin" t#is bene$it by t#e ecretary o$ )abor and mployment afterconsidering the viability or financial condition of such establishment.8he grant of benefit in e"cess of that provided herein shall not be made a subject of arbitration orany court or administrative action.

    &ervice )ncentive Leave ;&)L< is commutable to its money e!uivalent if not used ore"hausted at the end of the year.

    At least 1 year service service for not less than - months, whether continuous or brokenreckoned from the date the employee started working.

    Em($oyee# Not Coered by SIL

    . government employees/

    -. managerial employees/

    0. field personnel and other employees whose time and performance is unsupervised by theemployer/

    . domestic helpers, and persons in the personal service of another/

    =. those who are already enjoying the benefit herein provided/

    >. those enjoying vacation leave with pay of at least five ;=< days/

    6. those employed in establishments regularly employing less than ten ;< employees/and,

    5. those e"empted by the &ecretary of Labor.

    Art. 4. Ser"e !ar+e#.

    ll service charges collected by hotels, restaurants and similar establishments shall be distributedat the rate of eighty#five percent ;5=I< for all covered employees and fifteen percent ;=I< formanagement. 8he share of the employees shall be e!ually distributed among them. )n case theservice charge is abolished, the share of the covered employees shall be considered integrated intheir wages.

    Ser"e C!ar+e# apply only to establishments collecting service charges such as hotels,restaurants, lodging houses, nightclubs, cocktail lounge, massage clinics, bars, casinos andgambling houses, and similar enterprises, including those entities operating primarily as privatesubsidiaries of the 'overnment.

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    mployees covered all employees of employers are covered, regardless of their positions,designations or employment status, and irrespective of the method by which their wages are paide6ceptto mana"erial employees.

    D"#tr"b-t"on

    5=I distributed e!ually among the covered employees.

    =I for the disposition by management to answer losses and breakages and distributionto managerial employees at the discretion of the management in the latter case.

    *istributed and paid to the employees not less than once every - weeks or twice a monthat intervals not e"ceeding > days.

    &upervisors share in the =I. 8he Labor Code speaks of management,$ notmanagerial employees.$

    aat"on Leae S"% Leae not re!uired by law and depends on voluntary employer policy orcollective bargaining.

    So$o Parent Leae a parental leave of not more than 6 working days every years shall begranted to any solo parent employee who has rendered service of at least one ;< year.

    &olo parent woman who gives birth as a result of rape or crimes against chastity, awidow or widower, a spouse separated legally or de facto for at least one year and soforth. 8he claimant must show that heEshe is left alone with the responsibility ofparenthood.

    Leae =nder RA 4** 0Ant"9"o$ene A+a"n#t >1>52

    )t grants seven days of paternity leave with full pay to married male employees in the private andpublic sectors. 8he conditions for entitlement are7

    ;a< the claimant, married male employee is employed at the time of delivery of his child/

    ;b< he is cohabiting with his wife at the time she gives birth or suffers a miscarriage/

    ;c< he has applied for paternity leave in accordance with &ec. of the law@s implementingrules/

    ;d< his wife has given birth or suffered a miscarriage.

    )n the 2evised )mplementing 2ules issued by *9L1 and the *epartment of Fealth,

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    abortion #as been delisted $rom t#e covera"eof paternity leave law.

    ?oreover, the entitlement of leave is seven calendardays.

    PRESIDENTIAL DECREE NO. >@1Re8-"r"n+ A$$ Em($oyer# to Pay T!e"r Em($oyee# A 17t!9Mont! Pay

    Re"#ed G-"de$"ne# on t!e Im($ementat"on of t!e 17t!Mont! (ay La&

    Payment of 17t!9mont! Pay. #All employers are #ereby re&ired to pay all t#eir ran/-and-$ile employees a 1;t# -mont# pay not later t#an December 84 o$ every year.

    T!"rteent!9mont! (ay shall mean one twelfth ;E-< of the basic salary of an employee withina calendar year/

    Em($oyer# oered. # 8he *ecree s#all apply to all employers

    e6cept to

    ;a< 8he !overnment and any o$ its political s&bdivisions, including government#ownedand controlled corporations, e"cept those corporations operating essentially as privatesubsidiaries of the 'overnment/

    ;b< mployers already payin" t#eir employees 1;-mont# pay or more in a calendar yearor its e&ivalent at the time of this issuance/

    ;c< mployers o$ #o&se#old #elpers and persons in t#e personal serviceof another inrelation to such workers/ and

    ;d< mployers o$ t#ose *#o are paid on p&rely commission , boundary, or task basis, andthose who are paid a fi"ed amount for performing a specific work, irrespective of the timeconsumed in the performance thereof, e"cept where the workers are paid on piece#ratebasis in which case the employer shall be covered by this issuance insofar as suchworkers are concerned.

    s used herein, *or/ers paid on piece-rate basis s#all re$er to t#ose *#o are paid a

    standard amo&nt $or every piece or &nit o$ *or/ prod&ced t#at is more or less re"&larlyreplicated, without regard to the time spent in producing the same.

    8he term its e&ivalentas used in paragraph c< hereof s#all incl&de %#ristmas bon&s, mid-year bon&s nd ot#er cas# bon&ses amo&ntin" to not less t#an 118t# o$ t#e basic salarybut shall not incl&de cas# and stoc/ dividends, cost o$ livin" allo*ances and all ot#erallo*ances re"&larly en'oyed by t#e employee, as *ell as non-monetary bene$its.

    >inim&m amo&nt # the minimum 0thmonth pay re!uired by law shall not be less than E- of

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    the total basic salary earned by an employee within a calendar year.

    Ba#" Sa$ary # for the purpose of computing the 0thmonth pay shall include all remuneration orearning paid by his employer for services rendered but does not include allowances andmonetary benefits which are considered or integrated as part of the regular or basic salary, suchas the cash e!uivalent of unused vacation and sick leave credits, overtime premium, nightdifferential and holiday pay, and cost of living allowances.

    17t!9mont! Pay for Certa"n Ty(e# of Em($oyee#

    a. mployees paid by res&lts entitled to the mandated 0th#month pay based on theirtotal earnings during the calendar year.

    b. #ose *it# m&ltiple employer entitled to the re!uired 0thmonth pay from all theirprivate employers regardless of their total earnings from each or all of their employers.

    c. Private sc#ool teac#ers entitled to the re!uired 0thmonth pay if they have renderedservice for at least one ;< month within a year.

    17t!9mont! Pay of re#"+ned or Se(arated Em($oyee

    &uch resigned or separated employee is entitled of the amount e!uivalent to E- of his totalbasic salary earned during such year when he was still working with his employer.

    Consistent with the principle of e!uity, the employer can also re!uire the employee to demand theemployee to clear himself of all the liabilities and accountabilities upon the termination of therelationship.

    T"t$e II

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    Em($oy includes to suffer or permit to work.

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    =a"es and Prod&ctivity oards. ;s amended by &ection 0, 2epublic ct +o. >6-6, 3une 4,454o Congress

    M"n"m-m &a+e the lowest wage rate fi"ed by law that an employer can pay his employees.

    Complaint may be brought before the *9L1 regional office ;rt. -4< or Labor rbiter ;rt. -6

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    CODES AND NOTES ON LABOR STANDARDSby PORFERIO JR. and MELFA SALIDAGA

    Ander the second category, the number of pieces produced is multiplied by the rate per piece asdetermined by the employer.

    Dut if the amount is lower than the legal daily rate, the employer must make up the difference.

    P"ee9rate Em($oyee# are Ent"t$ed to t!e Fo$$o&"n+ M"n"m-m

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    ;a< 8hat payments are made at intervals not e"ceeding si"teen ;>< days, in proportion to theamount of work completed/

    ;b< 8hat final settlement is made upon completion of the work.

    8he )22 of the Code re!uires every employer to pay his employees through payroll. 8hey payrollshould clearly, among other data, the employee@s pay rate, the deductions made, and the amountactually paid.

    lso re!uired are employees@ individual time records.

    Art. 16). P$ae of (ayment.

    Genera$ R-$e Payment o$ *a"es s#all be made at or near t#e place o$ &nderta/in"

    E/e(t"onAs ot#er*ise provided by s&c# re"&lations as t#e ecretary o$ )abor andmployment may prescribe under conditions to ensure greater protection of wages.

    Art. 16@. D"ret (ayment of &a+e#.

    Genera$ R-$e =a"es s#all be paid directly to t#e *or/ers to *#om t#ey are d&e.

    E/e(t"on#

    n cases o$ $orce ma'e&re rendering such payment impossible or

    &nder ot#er special circ&mstances to be determined by t#e ecretary o$ )abor andmployment in appropriate re"&lations, in which case, the worker may be paidthrough another person under written authority given by the worker for the purpose/ or

    =#ere t#e *or/er #as died,in which case, t#e employer may pay t#e *a"es o$ t#edeceased *or/er to t#e #eirs o$ t#e latter without the necessity of intestateproceedings. 8he claimants, if they are all of age, shall e"ecute an affidavit attesting totheir relationship to the deceased and the fact that they are his heirs, to the e"clusion ofall other persons. )f any of the heirs is a minor, the affidavit shall be e"ecuted on hisbehalf by his natural guardian or ne"t#of#kin. 8he affidavit shall be presented to theemployer who shall make payment through the &ecretary of Labor and 1mployment orhis representative. 8he representative of the &ecretary of Labor and 1mployment shallact as referee in dividing the amount paid among the heirs. 8he payment of wages under

    this rticle shall absolve the employer of any further liability with respect to the amountpaid.

    Art. 16. Contrator or #-bontrator.

    (henever an employer enters into a contract with another person for the performance of theformerBs work, the employees of the contractor and of the latterBs subcontractor, if any, shall bepaid in accordance with the provisions of this Code.

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    o contract o&t is a proprietary ri"#t o$ employer to e6ercise an in#erent mana"ementprero"ative, unless such employer is acting in a malicious or arbitrary manner.

    8he employer has the right to +promote e$$iciency and attain economyand to determinewhether services+s#o&ld be per$ormed by its personnel or contracted to o&tsidea"encies. @nless it is proved that managementacted in a malicio&s or arbitrary manner,the Court will not interfere with the e"ercise of judgment by an employer.$

    Contrat"n+ ,an arrangement whereby a principal agrees to put out or farm out with a contractoror subcontractor the performance or completion of a specific job, work or service within a definiteor predetermined period regardless of whether such job, work or service is to be performed orcompleted within or outside the premises of the principal.

    More Contrat"n+ Pro!"b"t"on# =nder Set"on of D.O. No. 1>96*

    ;a< contracting out that results in termination of regular employees and reduction of work

    hours or reduction or splitting of the bargaining unit ;such contracting out is prohibitedonly if it is not done in good faith and not justified by e"igencies of the business

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    Art. 164. So$"dary $"ab"$"ty.

    8he provisions of e"isting laws to the contrary notwithstanding, every employer or indirectemployer s#all be #eld responsible *it# #is contractor or s&bcontractor $or any violationo$ any provision o$ t#is %ode. :or purposes of determining the e"tent of their civil liability underthis Chapter, they shall be considered as direct employers.

    )f the liability is in the nature of penalty, such as backwages and separation pay because of awrongful dismissal, the liability should be solely that of the contractor if there is no proof that theprincipal conspired with the contractor in committing the wrongful dismissal of the contractor@sworker.

    Art. 116. 6=, ?arch -, 4546-6, 3une 4, 4546-6, 3une 4,4546-6, 3une 4, 4546-=, ?ay -, 454. Board3 $od+"n+3 and med"a$ attendane.

    #e employer s#all $&rnis# t#e #o&se#elper, $ree o$ c#ar"e, s&itable and sanitary livin"&arters as *ell as ade&ate $ood and medical attendance.

    Art. 1)4. Indemn"ty for -n;-#t term"nat"on of #er"e#.

    )f the period of household service is fi"ed, neit#er t#e employer nor t#e #o&se#elper mayterminate t#e contract be$ore t#e e6piration o$ t#e term, e6cept $or a '&st ca&se. )f thehousehelper is &n'&stly dismissed, he or she shall be paid t#e compensation already earned

    pl&s t#at $or $i$teen (15 daysby way of indemnity.

    $ t#e #o&se#elper leaves *it#o&t '&sti$iable reason, #e or s#e s#all $or$eit any &npaidsalary d&e #im or #er not e6ceedin" $i$teen (15 days.

    Art. 1@6. Ser"e of term"nat"on not"e.

    $ t#e d&ration of the household service is not determinedeither in stipulation or by the natureof the service, t#e employer or t#e #o&se#elper may "ive notice to p&t an end to t#erelations#ip $ive (5 daysbefore the intended termination of the service.

    Art. 1@1. Em($oyment ert"f"at"on.

    @pon t#e severance of the household service relation, t#e employer s#all "ive t#e#o&se#elper a *ritten statement o$ t#e nat&re and d&ration o$ t#e service and #is or #ere$$iciency and cond&ct as #o&se#elper.

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    Art. 1@*. Em($oyment reord.

    #e employer may /eep s&c# records as #e may deem necessary to re$lect t#e act&alterms and conditions o$ employment o$ #is #o&se#elper, which the latter shall authenticateby signature or thumbmark upon re!uest of the employer.

    C!a(ter IEMPLOMENT OF OME

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    or t#ro&"# some ot#er person.


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