LABOR STANDARDS AZUCENA NOTES: Lab or leg isl ati on – sta tue s, re gul ati ons & jurispruden ce governing relation s bet capital & labor, by providing for cer tai n standards ofterms & conditions of EENT or providing a legal framework w/in w/c tese terms & conditions & t e EENT relations ip may be negotiated, adjusted & administered! " #ivisions of Labor Legislation $! Labor %tandards – sets out te minimum terms, conditions & benets of EENT tat EE'% must provide or comply w/ & to w/c EE% are entitled as a matter of legal rigt! ( minimum re)uirements prescribed by e*isting laws, rules & regulations rel ating to wage s, rs of work , cost(of(livi ng allowance and ot er moneta ry & welfare benets, including occupational safety & ealtstandards! ( material or substance to be processed "! Labor 'elations – den es te status, rigts & duties and te institutional mecanisms, tat gover n te indiv & collective interactions ofEE'%, EE%, or teir representatives! ( mec anism tat processes te substance Labor – pys ical toil alt ougit does not necessar ily e* clude te app lication of skill +tus skilled- & unskilled- labor. %kill – te familiar knowledge of any art/science, united w/ readiness & de*terity in e*ecution/performance or in te application ofte art/science to practica l purposes! ork – +broader tan labor. – covers all forms ofpys ical /ment al e*ertion, or botcombined, for t e attainment of some obj ot er t an recreation/amusement per se! ork er – +broader tan EE. – may refer to self( employed people & t ose working in t e ser vi ce & un der te control of ano t er, regardless of rank, title, or nature of work! ( any member of te labor force weter employed/unemployed Employee – a salaried person working for anoter wo controls or supervises te means, manner or metod of doing te work! Labor Law & Social Legislation %ocial legi slat ion – includes laws tat provide particular kinds of pr otection/benet s to society in furterance of social justice! • Labor laws are necessarily social legislation Social Justice as te Ai! %ocial justice – umani0ation of laws & t e e)uali0ation of social & economic forces by te %tate so ta t soc ial jus tic e in its rati ona l & objectively secular conception may at leas be appro*imated ( promotion of te welfare of te ppl , te adopt ion by te 1ovt of mea sur es calc ulat ed to insu re economic stabil ity of all te component elements of society trougte maintenance of proper economic & social e) uilibrium in t e interrelations of t e membe rs of te commu nity , cons titut iona lly, t rougt e adopti on of meas ur es legally justiable, or e*tra(constitutionally, trougt e e*ercise of po wers underl yi ng t e e*istence of all govts! $234 5onsti6 pr otects te ri gt s of wor kers & promote teir welfare 7asic rigts of work er s guar anteed by t e 5onstitution $! to organi0e temselves "! to conduct collective bargaini ng/negotiation w/ mgt8 9! to en gage in pe acef ul concerted activities, including to strike in accordance w/ law8 and :! to par tic ipa te in poli cy & decis ion (ma king processe s a;ecting rigts & benets <t er 5onsti provisions t at protect t e 's/promote te welfare of workers • ' to form unions, assocs or societies for purposes not contrary to law • ' of sel f (org even fo r go vt EE%!! No o=cer/Ee of t e 5ivil %ervice sal l be removed/suspended for cause! T emporary EE% of te 1ovt sall be given sucprotection as may be provided by law • 'egular farmworkers sall ave te ' to own directly/colle ctively te lands tey till! Landless farmwork ers may be resettled by te govt in its own agri estates! • 5ontinuing program of urban land reform & ousing • >rotection for working women taking into acct teir maternal functions, etc • Labor sector is entitled to seats to party list • 1oal6 more e) uitable distribution of opportunities, income & wealt! • ?gency to promote te viability & growtof cooperatives as instruments for social justice & e conomic dev@t • 1ovt sall increase te salary scales of te oter o=cials & EE%
Labor legislation – statues, regulations & jurisprudence governing relations bet capital &labor, by providing for certain standards of terms & conditions of EENT or providing a legalframework w/in w/c tese terms & conditions &te EENT relationsip may be negotiated,adjusted & administered!
" #ivisions of Labor Legislation
$! Labor %tandards – sets out te minimum terms,conditions & benets of EENT tat EE'% mustprovide or comply w/ & to w/c EE% are entitledas a matter of legal rigt!
( minimum re)uirementsprescribed by e*isting laws, rules & regulationsrelating to wages, rs of work, cost(of(livingallowance and oter monetary & welfarebenets, including occupational safety &ealt standards!
( material or substance to beprocessed
"! Labor 'elations – denes te status, rigts &duties and te institutional mecanisms, tatgovern te indiv & collective interactions of
EE'%, EE%, or teir representatives!( mecanism tat processes te
substance
Labor – pysical toil altoug it does notnecessarily e*clude te application of skill+tus skilled- & unskilled- labor.
%kill – te familiar knowledge of any art/science,united w/ readiness & de*terity ine*ecution/performance or in te application of
te art/science to practical purposes!
ork – +broader tan labor. – covers all forms of pysical/mental e*ertion, or bot combined,for te attainment of some obj oter tanrecreation/amusement per se!
orker – +broader tan EE. – may refer to self(employed people & tose working in teservice & under te control of anoter,regardless of rank, title, or nature of work!
( any member of te labor force weteremployed/unemployed
Employee – a salaried person working for anoterwo controls or supervises te means, manneror metod of doing te work!
Labor Law & Social Legislation
%ocial legislation – includes laws tat provideparticular kinds of protection/benets tosociety in furterance of social justice!
• Labor laws are necessarily social legislation
Social Justice as te Ai!
%ocial justice – umani0ation of laws & tee)uali0ation of social & economic forces by te%tate so tat social justice in its rational &objectively secular conception may at leas beappro*imated
( promotion of te welfare of teppl, te adoption by te 1ovt of measurescalculated to insure economic stability of allte component elements of society trougte maintenance of proper economic & sociale)uilibrium in te interrelations of te
members of te community, constitutionally,troug te adoption of measures legally
justiable, or e*tra(constitutionally, trougte e*ercise of powers underlying tee*istence of all govts!
$234 5onsti6 protects te rigts of workers &promote teir welfare
7asic rigts of workers guaranteed by te5onstitution
$! to organi0e temselves
"! to conduct collectivebargaining/negotiation w/ mgt89! to engage in peaceful concerted activities,
including to strike in accordance w/ law8and
:! to participate in policy & decision(makingprocesses a;ecting rigts & benets
<ter 5onsti provisions tat protect te's/promote te welfare of workers
• ' to form unions, assocs or societies forpurposes not contrary to law
• ' of self(org even for govt EE%!! Noo=cer/Ee of te 5ivil %ervice sall beremoved/suspended for cause!
Temporary EE% of te 1ovt sall be givensuc protection as may be provided by law
• 'egular farmworkers sall ave te ' toown directly/collectively te lands tey till!Landless farmworkers may be resettled byte govt in its own agri estates!
• 5ontinuing program of urban land reform& ousing
• >rotection for working women taking intoacct teir maternal functions, etc
• Labor sector is entitled to seats to partylist
• 1oal6 more e)uitable distribution of opportunities, income & wealt!
• ?gency to promote te viability & growtof cooperatives as instruments for social
justice & economic dev@t• 1ovt sall increase te salary scales of te
• 5areer civil service EE% sall be entitled toseparation pay & retirement benets, <'may be considered for reemployment in
te govt
5onsti – prol(labor, but recogni0es teindispensable role of te private sector,encourages private enterprise and providesincentives to needed investments
"olice "ower as te Basis
( te power of te govt to enact laws, w/in5onstitutional limits to promote te order,safety, ealt, morals & general welfare of society
( power inerent in govt to protect itself &
all its constituents, & for tis purpose toold te govt immune so far as necessary,from any limitatins imposed in te past!
( ?n imposition of restraint upon liberty orproperty in order to foster te commongood!
Birt o# te LC
7las <ple ( fater of te L5
L5 – designed to be a dynamic & growing body of laws w/c will reAect continually te lessons of practical application & e*perience
$ "rinci%les Unerl'ing te coe
$! Labor relations must be made botresponsive & responsible to national devt
"! Labor laws/labor relations during a periodof national emergency must substituterationality for confrontation8 strikes orlockouts give way to a rational process w/cis arbitration
9! Laggard justice in te labor eld is
injurious to te workers, te EE'% & tepublic8 labor justice can be madee*peditious w/o sacricing due process!
:! Banpower devt & EENT must be regardedas a major dimension of labor policy, fortere can be no real e)uality of bargainingpower under conditions of severe massunemployment!
C! Tere is a global labor market available to)ualied Dilipinos, esp tose wo areunemployed or wose EENT is tantamountto unemployment bco0 of teir very littleearnings!
! Labor laws must command ade)uateresources & ac)uire a capable macineryfor e;ective & sustained implementation8wen labor laws cannot be enforced, botEE'% & te workers are penali0ed, & onlya corrupt few +tose wo are in carge of implementation. may get te reward teydon@t deserve!
4! Tere sld be popular participation innational policy(making troug wat isnow called tripartism!
%ome Labor Laws before te >assage of te 5ode
• ?ct F$34:6 EE'@% Liability ?ct,
• ?ct F"C:26 proibited payment of wagesin non(cas form
• ' F$GC:6 re)uiring emergency medicaltreatmt for EE%
• 5? F :::6 3(r labor law
•
5? F$G9 created te 5ourt of Hndustrial'elations +5H'.
• >d F"$ created te NL'5 + to investigate,decide & settle all disputes bet EE'% &EE%
• '? F 34C6 Te Hndustrial >eace ?ct +teBagna 5arta of Labor.
• '? F2:6 7lue %unday Law – forbidscommercial, industrial or agri enterprisesto open on any %unday, Imas #ay, New
Jear@s #ay, Koly Turs & 1ood Driday!• '? F$4346 Te Termination >ay Law –
enumerated te just causes for
terminating an EENT w/o a denite periodand allowed EE'% to separate an EE byserving a $C(day notice per yr of serviceor, by paying an e)uivalent separationpay!
%ignicance of <ter Laws
$! Doreign #ecisions – numerous L5provisions are substantially similar to teHndustrial >eace ?ct
"! Te 5ivil 5ode – describes te nature of
labor mgt relations6Te relations bet capital & labor are notmerely contractual! Tey are so impressedw/ public interest tat labor contractsmust yield to te common good! succontracts are subj! to te special laws onlabor unions, collective bargaining, strikes& lockouts, closed sop, wages, workingconditions, rs of labor & similar subjs!- ?rt $4GGNeiter capital nor labor sall actoppressively against te oter, or impairte interest or convenience of te public-
–?rt $4G$!9! '>5 – punises te use of violence ortreats by eiter EE' or EE!
:! %pecial Laws – +%%% law, 1%H% law,?grarian 'eform law, te $9t(mont paylaw, te Bagna 5arta for >ublic Kealtorkers.
Art () *Declaration o# Basic "olici+ Te Statesall a,or %rotection to labor- %ro!ote#ull EENT- ensure e.ual wor/
o%%ortunities regarless o# se0- race orcree- an regulate te relations betwor/ers & EERS) Te State sall assurete rigts o# wor/ers to sel#1org-collecti2e bargaining- securit' o# tenure-an 3ust & u!ane conitions o# wor/)
Balance A%%roac – sared responsibility!orker & EE' sectors are interdependent!
?rt:! M5onstruction in Davor of Labor ?ll doubts inte implementation & interpretation of te
provisions of tis 5ode, including its H''s, sallbe resolved in favor of labor!
Hnterpretation & 5onstruction – policy is to e*tendte decree@s applicability to a greater numberof EE% to enable tem to avail of te benetsunder te law +Liberal approac is adopted.
5oncern for te Lowly orker – %5 rea=rms itsconcern for te lowly worker wo, often at isEE'@s mercy, must look up to te law for isprotection! +'eason6 te EE' stands on igerfooting tan te EE6 +$,. Tere is greater
supply tan demand for labor8 +". te need forEENT by labor comes from vital & evendesperate necessity!.
Bgt 'igts – entitled to respect & enforcement inte interest of simple fair play!
$! ' to manage, control, and use is property& conduct business in a mannersatisfactory to imself +just discriminationin te rate of wages paid to te skillful &to te unskillful, to te e=cient &ine=cient!.
"! ' to prescribe rules +tey become part of te contract of EENT.
9! ' to select EE% & to decide wen toengage tem, e*cept as restricted bystatute or valid contract, at a wage &under conditions agreeable to tem!
:! ' to transfer & discarge EE% in order tominimi0e e*penses & to insure stability of te business & even to close te business,provided it is done in good fait & due tocauses beyond control!
?rt C! M'ules & 'egulations te #<LE & otergovt agencies carged w/ te administration &
enforcement of tis 5ode or any of its partssall promulgate te necessary H''s! %uc ''ssall become e;ective $C days afterannouncement of teir adoption in tenewspapers of gen! circulation!
?rt ! M?pplicability ?ll 's & benets granted toworkers under tis 5ode sall, e*cept as mayoterwise be provided erein, apply alike to all
workers, weter agricultural or non(agricultural!
( also applies to a govt corp incorporatedunder te 5orporation 5ode!
( Test <N a govt(owned/(controlled corp issubj to 5% Law is te manner of itscreation! 1ovt corps created by specialcarter are subj to its provisions, wiletose incorporated under te gen 5orpLaw are not w/in te coverage of te 5%law!
• >N<5(E#5 – incorp under te 5orp Law subj to L5
• NK? – incorp under ?ct $:C2, te formercorp law L5
•
1ovt agencies – Ees covered by 5% Law
5K! "6 EB?N5H>?TH<N <D TEN?NT%
?rt 4 M%tatement of <bjectives O it as becomeimperative to start reformation w/ teemancipation of te tiller of te soil from isbondage!
?rt 36 MTransfer of Lands to Tenant(workers O
tenant(farmers on private agri lands primarilydevoted to rice & corn under a sys of sarecrop or lease tenancy weter classied aslanded estate or not sall be deemed owner of apportion constituting a family(si0e farm of Cectares if not irrigated & 9 ectares if irrigated!!
Hn all cases, te landowners may retain anarea of not more tan 4 ectares if suclandowner is cultivating suc area or will nowcultivate it!
?rt 2! M#etermination of Land Palue Dor tepurpose of determining te cost of te land tobe transferred to te tentant(farmer, te valueof te land sall be e)uivalent to " & Q timeste average arvest of 9 normal crop yrsimmediately preceding te promulgation of >#"4 +<5T "$, $24".!
Te total cost of te land, includinginterest at te rate of R per annum, sall bepd by te tenant in $C yrs of $C e)ual annualamorti0ations!
Hn case of default, te amorti0ations due
sall be pd by te farmers@ cooperative in w/cte defaulting tenant(farmer is a member, w/te coop aving a rigt of recourse againstim!
Te govt sall guarantee sucamorti0ations w/ sares of stock in govt(owned& (controlled corps!
?rt $G! M5onditions of <wnersip No title to teland ac)uired by te tenant(farmer under >#
"4 sall be actually issued to im unless &until e as become a full(Aedged member of a duly recogni0ed farmers@ coop!
Title to te land ac)uired pursuant to >#"4 or te Land 'eform >rogram of te 1ovtsall not be transferable e*cept by ereditarysuccession or to te 1ovt in accdance w/ teprovisions of ># "4, te 5ode of ?grarian'eforms & oter e*isting laws & regulations!
?rt $$! MHmplementing ?gency Te #ept of ?grarian 'eform sall promulgate tenecessary rules & regulations to implementte provisions of tis 5apter!
SLand for te landless – battlecry dramati0ing te
increasingly urgent demand of tedispossessed for a plot of eart as teir placeunder te sun!
S5?'> Law – signed by 5ory, declaring full landownersip in favor of te beneciaries of te># "4!
%are tenancy – abolised, put te agriculturalleaseold sys in its stead, geared towardseventual ownersip of land by its tillers
5onsti ( %tate sall undertake an ?grarian 'eform
>rogram, and encourage & undertake te justdistribution of all agri lands, subj to sucpriorities & reasonable retention limits as te5ongress may prescribe,
5ompensation sceme6 %ec $3 of 5?'>6 Title toall e*propriated properties sall be transferredto te %tate only upon full payment of compensation of teir respective owners!
'etention Limits – provided for by '? C4 6 asoterwise provided!! no person may own/retaindirectly/indirectly, any public/private agri land,te si0e of w/c sall vary accdg to factors
governing a viable family(si0ed farm, suc ascommodity produced, terrain, infrastructure, &soil fertility as determined by te >residential?grarian 'eform 5ouncil +>?'5.!
9 ectares – may be awarded to eac cild of te landowner, subj to te ; )ualications6 +$!.e is at least $C y/o, and +". e is actuallytilling te land or directly managing te farm8>rovided, tat landowners wose lands avebeen covered b ># "4 sall be allowed to keepte area originally retained by temtereunder8 >rovided furter, tat orig
omestead grantees or direct compulsory eirswo still own te org omestead at te time of te approval of tis ?ct sall retain te sameareas as long as te continue to cultivate saidomestead!
Lands not covered
$! Lands obtained troug omesteadpatent6
Komestead ?ct – gives a needy citi0en apiece of land were e may build amodest ouse for imself & family & plant
wat is necessary for subsistence & forte satisfaction of life@s oter needs!( superior over te rigts of
tenants
"! 'esidential %ubdivisions – not consideredagricultural! ?n agricultural leaseold cannotbe establised on land w/c as ceased to bedevoted to cultivation or farming bco0 of itsconversion into a residential subd!
swine raising- in te denition of commercialfarms- is invalid! Tey are covered by teagrarian reform prog of te %tate!
Te 1reatest 7lessingOTe orst 5rime- –Drederick Taylor
( an increased output invariably gives morework to more men, & never in te istoryof te world as it more tan temporarily,and ten for only a very sort time,diminised by te number of men at workin any trade
Te 1reatest E*ploiter- – 7las <ple
( unemployment is te greatest e*ploiter of labor! Bass unemployment tends to leavete EE' all(powerful and te workerdefenseless
Bore 5apital Beans Bore obs- – ?dam %mit
( " kinds of funds6 +$. te 'evenue – w/c isover & above wat is necessary for temaintenance8 and +". te %tock – w/c isover & above sat is necessary for teEENT of teir masters!
( Te demand for tose wo live by wages necessarily increases w/ te increase of te revenue & stock of every country andcannot increase w/o it! Te increase of revenue & stock is te increase of nationalwealt!
?n E*ploited 5lass- – ! 'eynato >uno
( <verseas workers constitute an e*ploitedclass! Teir unfortunate circumstancemakes tem easy prey to avaricious EE's!
Tey will work under subuman conditions& accept salaries below te minimum!
?im6 ? more e)uitable distribution & ownersip of land, w/ due regard to te rigts of landownersto just compensation & to te ecological needs
of te nation
7asis6 te ' of farmers & regular farm workers,wo are landless, to own directly or collectivelyte lands tey till or, in te case of oter farmworkers, to receive a sare of te fruits tereof
Te %tate6
( sall respect te ' of small landowners &sall provide incentives for voluntary land(saring
( sall recogni0e te ' of farmers, farmworkers & landowners, as well as
cooperatives & oter independent farmersorg, to participate in te planning, org, &mgt of te program & sall providesupport to agriculture toug tec &researc & nancial, production,marketing & oter support services
( may resettle landless farmers & farmworkers in its own agricultural estates
( sall encourage te formation &maintenance of economic(si0ed familyfarms to be constituted by indivbeneciaries & small landowners
( sall protect te 's of subsistence
sermen to te preferential use of communal marine & sing resources botinland & o;sore
( sall provide support to suc sermentru appropriate tec & researc,ade)uate nancial, production &marketing assistance
( sall protect o;sore sing grounds of subsistence sermen against foreignintrusion! Diserworkers sall redeive a
just sare from teir labor in te utili0ationof marine & sing resources
( owners of agri land ave te oblig to
cultivate directly or tru labor admin telands tey own & tereby make te landproductive!
( %all provide incentives to landowners toinvest te proceeds of te agrarian reformprog to promote industriali0ation, EENT &privati0ation of pub sector enterprises
( Bay lease undeveloped lands of pubdomain to )ualied entities for te devt of capital(intensive farms, traditional &pioneering crops esp tose for e*port+subj! to 's of beneciaries.
#enitions
$! ?grarian 'eform – te redistribution of lands, regardless of crops/fruits produced,to farmers & regular farm workers wo arelandless, irrespective of tenurialarrangemt, to include te totality of factors & support services designed to liftte economic status of te beneciariesand all oter arrangemts alternative to te
pysical redistribution of lands +productionor prot(saring, labor admin, distributionof sares of stock.
"! ?griculture, ?gricultural Enterprise or?gricultural ?ctivity – te cultivation of tesoil, planting of crops, growing of fruittrees, incl! te arvesting of suc farmproducts, & oter farm activities
9! ?gricultural land – land devoted toagricultural activity, and N<T classied asmineral, forest, residential, commercial orindustrial land
:! ?grarian #ispute – any controversyrelating to tenurial arrangements, weterleaseold, tenancy, stewardsip oroterwise, over lands devoted to agri
( including disputesconcerning farm workers assocs, orrepresentation of persons in negotiating,*ing, maintaining, canging or seeking toarrange terms of conditions of suctenurial arrangements
( including controversyrelating to compensation of lands ac)uiredunder tis ?ct & oter terms & conditionsof transfer of ownersip from landownersto farm workers, tenants & oter agrarianreform beneciaries
C! Hdle / ?bandoned Land – any agricultural landnot cultivated, tilled or developed to produceany crop nor devoted to any specic economicpurpose continuously for a period of 9 yrsimmediately prior to te receipt of notice of ac)uisition by te govt
( but does N<T include land tatas become permanently or regularly devoted tonon(agricultural purposes
( does N<T include land w/c as
become unproductive by reason of force majeureor D event
! Darmer – a natural person wose primaryliveliood is cultivation of land or teproduction of agri crops eiter by imself, orprimarily w/ te assistance of is immediatefarm ouseold, weter te land is owned byim, or by anoter person under a leaseold ortenancy agreement
4! Darmworker – a netural person wo rendersservice for value as an EE or laborer in anagricultural enterprise or farm
3! 'egular Darmworker – a natural person wo isemployed on a permanent basis by anagricultural enterprise or farm
2! %eason Darmworker – a natural person wo isemployed on a recurrent, periodic orintermittent basis by an agricultural enterpriseor farm
! 5ooperatives – orgs composed primarily of small agri producers, farmers, farmworkers oroter agrarian reform beneciaries wo
voluntarily organi0e temselves for tepurpose of pooling land, uman, tecnological,nancial or oter economic resources &operated on te principle of one member, onevote! + a juridical person may be a member of a coop, w/ te same 's & duties as a naturalperson!
%cope6 all public & private agricultural lands, incl!oter lands of te pub domain suitable foragriculture
$! ?ll alienable & disposable lands of te pubdomain devoted to or suitable for
agriculture"! ?ll lands of te pub domain in e*cess to
te specic limits as determined by5ongress
9! ?ll oter lands owned by te 1ovt devotedto or suitable for agri
:! ?ll private lands devoted to or suitable foragri regardless of te agri productsraised/can be raised tereon
%cedule of Hmplementation6 w/in $G yrs frome;ectivity
'etention Limits6 no person may own or retain,directly, any pub or private agricultural land,te si0e of w/c sall vary accdg to factorsgoverning a viable family(si0ed farm
( landowner may retain only C ectares!( 9 ectares6 eac cild of landowner, tat
is $Cy/o, and is actually tilling te land ordirectly managing te farm
( landowners wose lands ave beencovered by ># "4 sall be allowed to keepte area originally retained by temtereunder
( te original omestead grantees or directcompulsory eirs wo still own te origomestead sall retain te same areas aslong as tey continue to cultivate saidomestead
( te ' to coose te area to be retainedbelongs to te landowner! Kowever6 +a.in case te area selected by landowner istenanted, te tenant sall ave te optionweter to remain terein, be abeneciary of te same, or anoter agriland w/ similar/comparable features8 +b. incase te tenant cooses to remain in teretained ares, e sall be considered aleaseolder & sall lose is ' as aleaseolder to te land retained by telandowner! Te tenant must e*ercise tisoption w/in $ yr fr te time te landownermanifests is coice of te area forretention!
( Upon ?ct@s e;ectivity, any sale,disposition, lease, mgt contract or transferof position of private lands e*ecuted byte orig landowner in violation of tis ?ct
sall be null & void! >rovided, tat tosee*ecuted prior to tis ?ct sall be validonly wen registered w te 'eg of #eeds
w/in 9 monts after e;ectivity!
>residental ?grarian 'eform 5ouncil +>?'5. – sallprovide te implementing rules
( upon recommendation by te>rovincial ?grarian 'eform coordinating5ommittee, may declare certainprovinces/regions as priority land reform areas
Bultinational 5orps – all lands of te pub domainleased, eld, or possessed by multi corps orassocs, and oter lands owned by te govt, orgovt(owned/(controlled corps, assocs,institutions or entities, devoted to e*isting &operational agribusiness or agro(industrialenterprises, operated by multicorps sall beprogrammed for ac)uisition & distributionimmediately upon e=ctivity
?ncestral Lands – sall include, but not limited to,lands in te actual, continuous & openpossession & occupation of te community and
its members, provided tat te Torrens %ystemsall be respected
( sall be protected to ensure teireconomic, social & cultural well(being
( in te autonomous regions, te respectivelegislature may enact teir own laws onancestral domain subj to te provisions of te 5onsti, tis ?ct and oter nationallaws!
E*emptions & E*clusions
$! Lands actually, directly & e*clusively used
for parks, wildlife, forest reserves,reforestation, s sanctuaries andbreeding grounds, waterseds andmangroves
"! >rivate lands actually, directly &e*clusively used for prawn farms &sponds +provided tat said prawn farms& sponds ave not been distributed and5ert of Land <wnersip ?ward issued to?'>!
9! Lands actually, directly & e*clusively used& found to be necessary for nationaldefense, scool sites & campuses, incl
e*perimental farm stations operated bypub/private scools for educationalpurposes, seeds and seedlings researcand pilot production center, curc sites &convents apputenat terety, mos)ue sites& Hslamic centers appurtenant tereto,communal burial grounds & cemeteries,penal colonies & penal farms actuallyworked by inmates, got & private researc& )uarantine centers and all lands w/ $3R
$! ?fter aving identied te land, telandowners & beneciaries, #?' sallsend its notice to ac)uire te land to teowners8
"! w/in 9G days from date of receipt,landowners sall inform te #?' of isacceptance/rejection of te o;er8
a! if landowner accepts te o;er, teL7> sall pay te landowner of tepurcase price of te land w/in 9Gdays after e e*ecutes & delivers adeed of transfer in favor of te
1ovt and surrenders te 5ert of Title
b! in case of rejection or failure toreply, #?' sall conduct summaryadmin proceedings to determinecompensation of te land
9! upon receipt of te landowner of tepayment, or in case of rejection or noresponse fr te landowner, upon tedeposit w/ an accessible bank or tecompensation, te #?' sall takeimmediate possession of te land & sallre)uest te 'egister of #eeds to issue a
T5T in te name of te '>!:! ?ny party wo disagrees w/ te decision
may bring te matter to te court
#etermination of ust 5ompensation
( cost of ac)uisition of te land( current value of like properties,( its nature, actual used and income( te sworn valuation by te owner,( ta* declarations
( assessment made by te govt assessors
Hncentives for voluntary o;ers of sale – addt@l CRcas
>riority of Vualied 7eneciaries
$! ?gricultural lessees & sare tenants"! 'egular farmworkers9! %easonal farmworkers:! <ter farm workersC! ?ctual tillers/occupants of public lands
! 5ollective or cooperatives of te abovebeneciaries
4! <ters directly working on te land
S>rovided6 cildren of landowners wo are)ualied sall be given preference in tedistribution of te land of teir parents
S>rovided furter6 actual tenant(tillers in telandolding sall not be ejected/removedterefrom!
Transferability of ?c)uired lands by beneciaries –may not be sold, transferred or conveyed e*cept tru ereditary succession, or to tegovt, or to te L7>, or to oter )ualiedbeneciaries for $G yrs
S>rovided, tat te cildren/spouse of tetransferor sall ave a ' to repurcase teland fr te govt/L7> w/in " yrs
%tanding crops at te time of ac)uisition – sallbe retained by te landowner, #ar sall give areasonable time to arvest te same
5orporate Darms
( in case land cannot be divided directly,sall be owned collectively by te worker(beneciaries wo sall form a workerscooperative or assoc w/c will deal w/ tecorp
( indiv members of te coop sall beprovided w/ omelots or small farmlots forteir family use taken fr te land owned byte coop
>roduction(saring ( pending nal land transfer
%upport %ervices
$! irrigation facilities"! infrastructure devt & pub works projects9! govt subsidies for te use of irrig facilities
'? 24GG – ?ct %trengtening te 5?'>, e*tending
te ac)uisition & distribution of all agriculturallands, instituting necessary reforms, amendingfor te purpose certain provisions of '? C4
( %tate recogni0es tat tere is not enougagricultural land to be divided &distributed to eac farmer & regularfarmworker so tat eac one can own iseconomic(si0e family farm!
( ?nswer6 simultaneous industriali0ationaimed at developing a self(reliant &independent national economy e;ectivelycontrolled by Dilipinos
( %tate may, in te interest of nationalwelfare or defense, establis & operatevital industries
( Hmplementation of te prog sall becommunity(based
( %tate sall recogni0e & enforce te 's of rural women to own & control land
( %tate sall provide incentives tolandowners to invest te proceeds of teagrarian reform prog to promote
industriali0ation, EENT & privati0ation of te pub sector enterprises
?dded #enition
$! 'ural women – women wo are engageddirectly/indirectly in farming and/or singas teir source of liveliood, weter paidor unpaid, regular or seasonal, or in foodpreparation, managing te ouseold,caring for te cildren, & oter similaractivities
"! Landless beneciary – one wo owns lesstan 9 ectares of agri land
?dded E*ception to 'etention Limits
( >rovincial, city & mun govt units ac)uiringprivate agri lands by e*propriation to be usedfor actual, direct & e*clusive pub purposes,suc as roads & bridges, pub markets, scoolsites, resettlement sites, local govt facilities,pub parks & brgy pla0as or s)uares consistentsall not be subj to te C(ectare retentionlimit
<rder of >riority
( 9 ectares eac to te $st " beneciaries( only wen tese beneciaries ave rcvd 9
ectares eac, sall te remaining portionof te landolding, if any, be distributed tooter beneciaries
>ayment by 7eneciaries – payable to L7> in 9Gannual amorti0ations at R interest per annum
%upport sall be e*tended e)ually to women &men beneciaries
Landico v %ia
Dacts6
• 9 parcels of land were originally owned byte ?ragons, tenanted by te late ?rcadioLandico from $2:2 until is deat in $24",afterwic, is tenancy rigts were succededby is son, petitioner Drancisco Landico +teoter petitioners were 7uenaventura+Drancisco@s son., and Dederico +Drancisco@sbroter., elped im cultivate te land
• in $24, Drancisco voluntarily surrendered istenancy 's over te land to te ?ragonstroug a notari0ed kasulatan- for aconsideration of >$,GGG, but petitionerscontinued cultivating te land until $234wen Drancisco e*ecuted anoter notari0ed
kasulatan- tru w/c e surrendered istenancy rigts for a consideration of >9,GGG!
• <n te same day as te e*ecution of te
$234 kasulatan, te lands were sold by te?ragons for >CG,GGG to respondent Deli* %ia,wo in turn converted te same to aresidential subd w/o a #?' clearance andejected te petitioners terefrom!
• >eitioners led a protest before te #?'alleging tat tey are te tenants of telands and claimed tat tey are entitled to adisturbance compensation! Tey alleged tattey were fooled into signing over teirtenancy rigts tru te macinations of te?ragons!
• Te respondents in teir answer, denied suc
allegation and added tat te petitioners arebarred by estoppel, laces and prescription
Hssue $6 <N petitioners are tenants of te land
Keld6 ? tenant is dened as a person wo, imself and w/ te aid available from w/in isimmediate farm ouseold, cultivates te landbelonging to, or possessed by anoter, w/ telatter@s consent for purposes of production,saring te produce w/ te landolder underte sare tenancy system, or paying to telandolder a price certain or ascertainable inproduce or in money or bot, under teleaseold tenancy system
Dor a tenancy relationsip to e*ist, all of te ; essential re)uisites must be present6
$. te parties are te landowner & te tenant". te subj matter is agricultural land9. tere is consent bet te parties:. te purpose is agricultural productionC. tere is personal cultivation by te tenant. tere is saring of te arvests bet te
parties
Under te denition, only Drancisco possesseste re)uisites of a tenant! >etitionersDederico and 7uenaventura are not tenantsbecause consent +F9. by te landowners islacking! Tey are merely farm elpers of Drancisco as part of is immediate farmouseold! Tere was also no evidence tosow tat tey gave a sare of teirarvest to te ?ragons +F.!
Hssue "6 <N te respondents took advantage of Drancisco@s old age & illiteracy and employedfraudulent scemes in order to deceive im
into signing te Wasulatans
Keld6 ?s te legal tenant of te lands, Dranciscoad voluntarily surrendered is tenancy rigtswen e knowingly & freely e*ecuted te $234Wasulatan! Tere was no sowing of foul play,because te Wasulatan was in Dilipino, alanguage spoken & understood by Dranciscoand was couced in plain and clear terms!%uc kasulatan was also duly notari0ed andare considered as public documents e*ecuted
w/ all te legal formalities wic a;ord it telegal presumption of regularity and legalityabent full, clear and convincing evidence to
te contrary!
Dinal ruling6 >etitioners ave no cause of actionand te same as prescribed!
>ortugue0 v 1%H% Damily 7ank and 5?
Dacts6
• >etitioner was employed by terespondent bank as utility clerk in $24$!%ince ten, e ad been promoted
repeatedly up to $223 wen e wastemporarily assigned as caretaker of tebank and designated as ?cting ?sst! P>and <H5 in une of $223!
• 'espondent bank is a banking institutionoriginally known as 'oyal %avings 7ank! Hn$239(3:, it underwent serious li)uidityproblems and was placed underreceiversip by te 5entral 7ank, wicordered its closure in uly of $23:! ?fter "monts, te respondent bank wasreopened under te control & mgt of 5omsavings 7ank!
• Hn $234, te 1%H% ac)uired te interest of te respondent bank and took over tecontrol & mgt of te bank and renamed itas 1%H% Damily %avings 7ank!
• Te designation of te petitioner as <H5 &caretaker was recalled, owever isappointment as ?cting ?sst P> wasretained!
• Hn line w/ its policy to attain nancialstability, te respondent bank adoptedmeasures, one of w/c is an earlyretirement program!
• Hn april of "GG$, petitioner opted to avail
imself of tis retirement package,+supposedly under protest. & received teamt of >$,9:"B as retirement pay!
• Hn july "GG", petitioner led a complaintagainst resp bank for constructivedismissal & underpayment of wages, $9t
mont pay & retirement benets beforete Labor ?rbiter! Ke allegeddiscrimination & unfair treatment, andintense pressure on te part of te respbank forced im to retire at te prime of is life
Hssue $6 <N tere was constructive dismissal
Keld6 No!
5onstructive dismissal – )uitting becausecontinued EENT is rendered impossible,unreasonable or unlikely, as an o;er involvinga demotion in rank & a dimunition in pay! Bayalso mean an act of clear discrimination,insensibility or disdain by an EE' may becomeso unbearable on te part of te EE so as to
foreclose any coice on is part e*cept toresign
>etitioner claims e was discriminated against asnew ires were given iger salaries tan ewas receiving!
#iscrimination – failure to treat all personse)ually wen no reasonable distinction can befound bet tose favored & tose not favored! Htmust be clearly establised tat +$. tere is noreasonable distinction for classication tatcan be obtained bet persons belonging to tesame class, and +". persons belonging to tesame class ave not been treated alike
>etitioner failed to establised tat e possessed
te same skills, competencies & e*pertise astose newly ired to eliminate te possibility of substantial distinction tat may warrantune)ual treatment bet tem!
>etitioner contends tat in cases of constructivedismissal, te burden of proof rests on te EE'to sow tat te EE was dismissed on a valid &
just cause! 7ut tis legal principle presupposestat tere is indeed an involuntary separationfrom EENT & te facts attendant to suc forcedseparation was clearly establised, w/c tepetitioner failed to do! Ht was im wo availed
of te voluntary retirement program! ?ndabsent te sowing of duress, te presumptionis tat it was done by im voluntarily!
ile te state promotes te utmost protection of labor against capital, it does not mean tat teworking class is upeld in all labor dispute! Telaw also recogni0es te rigts of management!
>'E(EB>L<JBENT
?rt $"! Ht is te policy of te %tate6
$! to promote and maintain a state of fullemployment troug improved manpowertraining, allocation and utili0ation8
"! to protect every citi0en desiring to worklocally/overseas by securing for im tebest possible terms and condition of employment8
9! to facilitate a free coice of availableemployment by persons seeking work inconformity wit te national interest8
:! to facilitate & regulate te movement of workers in conformity w/ te national
interest8C! to regulate te employment of aliens,
including te establisment of aregistration and/or work permit system8
! to strengten te network of publicemployment o=ces and rationali0e teparticipation of te private sector in terecruitment and placement of workers,locally and overseas, to serve nationaldevelopment objectives8
4! to insure careful selection of Dilipinoworkers for overseas employment in orderto protect te good name of te >K
abroad!
Te #<LE
( by ?dministrative 5ode of $234 +E< "2".( te primary policy(making, programming,
coordinating and administrative entity of te E*ecutive branc of te govt in teeld of labor and employment
Hts >rimary responsibilities6
$! Te promotion of gainful EENTopportunities and te optimi0ation of te
devt & utili0ation of te country@smanpower resources8
"! Te advancement of workers@ welfare byproviding for just and umane workingconditions and terms of EENT8
9! Te maintenance of industrial peace bypromoting armonious, e)uitable andstable EENT, relations tat assureprotection for te 's of all concernedparties!
orker – any member of te labor force weteremployed or unemployed!
'ecruitment & placement – any act of canvassing,enlisting, contracting, transporting, utili0ing,iring, or procuring workers and includesreferrals, contract services, promising oradvertising for EENT, locally or abroad,weter for prot or not6 provided, tat anyperson or entity w/c, in any manner, o;ers or
promises for a fee EENT to "/more personssall be deemed engaged in recruitment &placement
>rivate fee(carging EEnt ?gency – any person/entity engaged in te recruitment & placementof workers for a fee w/c is cargeddirectly/indirectly from te workers oremployers or bot
License – a document issued by te #<LEautori0ing a person/entity to operate aprivate EENT agency
>rivate recruitment entity – any person/assocengaged in te recruitment & placement of workers, locally/overseas witout carging,directly/indirectly any fee from te workers oremployers!
?utority – a document issued by te #<LEautori0ing a person/assoc to engage inrecruitment & placement activities as a privaterecruitment entity
%eaman – any person employed in a vesselengaged in maritime navigation
<verseas EENT – EENT of a worker outside te >K
Emigrant – any person, worker or oterwise, woemigrates to a foreign country by virtue of animmigrant visa or resident permit to itse)uivalent in te country of destination
?rt $:! EB>L<JBENT >'<B<TH<N
Te %ec of Labor sall ave te power &autority6
$! to organi0e & establis new EENT o=cesin addition to e*isting EENT o=ces under
te #<LE as te need arises8"! to organi0e & establis a nationwide job
clearance & information system to informapplicants registering w/ a particular EENTo=ce of job opportunities in oter parts of te country as well as job opportunitiesabroad8
9! to develop & organi0e a program tat willfacilitate occupational industrial andgeograpical mobility of labor and provideassistance in te relocation of workersfrom one area to anoter8 and
:! to re)uire any person, establisment, org,
or institution to submit suc EENTinformation as may be prescribed by te%ec of Labor!
7ureau of Local Employment +7LE. – assigned tee;ective allocation of manpower resources inlocal
( primarily responsible for developing &monitoring a compreensive EENTprogram!
>owers & #uties6
$! To formulate & develop plans & programsto implement te EENT promotionobjectives of tis Title8
"! To establis & maintain a registrationand/or licensing system to regulate privatesector participation in te recruitment &placement of workers, locally & overseas,and to secure te best possible terms &conditions of EENT for Dilipino contractworkers and compliance terewit undersuc rules & regulations as may be issuedby te #<LE8
9! To formulate & develop EENT programsdesigned to benet disadvantaged groups& communities8
:! To establis & maintain a registrationand/or work permit system to regulate teEENT of aliens8
C! To develop a labor market informationsystem in aid of proper manpower anddevelopment planning8
! To develop a responsible vocationalguidance & testing system in aid of properuman resources allocation8 and
4! To maintain a central registry of skills,e*cept seamen
<riginal & E*clusive urisdiction of teregional o=ces of #<LE
( over all matters/cases involving EE(EE'
relations including money claims, arisingout of or by virtue of any law or contractsinvolving Dilipino workers for overseasEENT e*cept seamen6 Provided, tet te7ureau of Employment %ervices +7E%.+now 7LE. may, in te case of te N5',e*ercise suc power, wenever te #<LEdeems it appropriate!
Te decisions of te regional o=ces of te7E% if so autori0ed by te %ec of #<LE sallbe appealable to te NL'5 upon te samegrounds provided in ?rt "99 ereof!
Te decisions of te NL'5 sall be nal &unappealable!
Binister of Labor – as te power to impose &collect fees, based on rates recommended byte 7E%! %uc fees sall be deposited in teNational Treasury as a special acct of te1eneral Dund, for te promotion of teobjectives of te 7E%, subj to te provisions of %ec :G of ># $$44!
• ># 3CG – replaced 7E% w/ 7LE, and
created ><E?• ?< $3 – made licensing of local
recruitment agencies and te issuance of work permits to non(resident aliens andEENT registration certicates to residentaliens a function of te regional o=ces of #<LE
• '? 342C – re)uired te establisment of a>ublic Employment %ervice <=ce +>E%<.in capital towns, cities and oter strategicareas
o >E%< ( serves as EENT service &information center
( 'egularly obtains lists of jobvacancies from EE'%,publici0es tem, invites andevaluates applicants, andrefers tem for probableiring
( >rovides training andeducational guidance andEENT counseling services
( ?lso renders specialservices to te public suc
as olding of jobfairs,liveliood and self(employment ba0aars
( %pecial credit assistance forplaced overseas workers( %pecial program for EENT of
students +%>E%. duringsummer or semestral breaks
( ork appreciation seminars& conferences and
( Kiring of workers ininfrastructure projects+KH>.
• 'a 33C – created KH>, a program w/cre)uires te #>K and private contractorsto ire 9GR of skilled and CGR unskilled
labor re)uirements from te area werete project is being undertaken
?rt $! >'HP?TE 'E5'UHTBENT6
1'6 No person/entity oter tan te public EENTo=ces, sall engage in te recruitment &placement of workers!
9! >rivate EENT agencies:! %ipping or manning agents or
representativesC! Te ><E?! 5onstruction contractors if autori0ed to
operate by #<LE and te 5onstructionHndustry ?utority
4! Bembers of te diplomatic corps altougirings done by tem ave to beprocessed troug te ><E?
3! <ter persons/entities as may beautori0ed by te %ec of #<LE
?rt $4! <PE'%E?% EB>L<JBENT #EPT 7<?'#
><E? – as taken over te functions of te<verseas Employment #evelopment 7oard+<E#7. and te National %eamen 7oard +N%7.
<D – a Dilipino worker wo is to be engaged, isengaged or as been engaged in arenumenerated activity in a country of wice/see is not a legal resident
" 5lassications
$! Land(based – contract workers oter tana seaman including workers ingaged ino;sore activities wose occupationre)uires tat majority of isworking/gainful rs are spent on land
"! %ea(based – tose employed in a vesselengaged in maritime navigation
$! Dormulation, implementation andmonitoring of overseas employment of Dilipino workers8
"! >rotection of teir rigts to fair ande)uitable employment practices89! #eployment of Dilipino workers troug
govt(to(govt iring
'egulatory Dunctions
$! 'egulate private sector participation in terecruitment & overseas placement of workers troug its licensing andregistration system8
"! Dormulate & implement, in coordination w/appropriate entities concerned, wennecessary, a system for promoting and
monitoring te overseas EEnt of Dilipinoworkers taking into consideration teirwelfare and te domestic manpowerre)uirements8
9! Hnform migrant workers not only of teirrigts as workers but also of teir rigts asuman beings8
:! Hnstruct and guide te workers ow toassert teir rigts and provide teavailable mecanism to redress violationof teir rigts8
C! Hn te recruitment & placement of workersto service te re)uirements for trained
and competent Dilipino workers of foreigngovts and teir instrumentalities, and sucoter employers as public interest mayre)uire, deploy only to countries6
a! ere te >K as concluded7ilateral labor agreements orarrangements8
b! <bserving and/or complying w/ teinternational laws and standards of migrant workers8
c! 1uaranteeing to protect te rigtsof Dilipino migrant workers!
?djudicatory Dunctions
$! ?dministrative cases involving violationsof licensing rules & regulations andregistration of recruitment and EEntagencies/entities8 and
"! #isciplinary action cases and oter specialcases w/c are administrative in caracter,involving employers, principals,contracting partners and Dilipino migrantworkers!
urisdiction of ><E?
$! all cases w/c are administrative incaracter, involving or arising out of violations of rules & regulations relating tolicensing & registration of recruitment andemployment agencies/entities8 and
"! disciplinary action cases and oter specialcases w/c are administrative in caracter,involving EE'%, principals, contractingpartners and Dilipino migrant workers
9! N< jurisdiction to enforce foreign judgment +must be brougt before teregular courts.! ><E? is an administrative
+not a court., e*ercising adjudicatory or)uasi(judicial functions:! N< jurisdiction over torts
1rounds for #isciplinary ?ction
$! 5ommission of a felony punisable by >laws or by te laws of te ost country8
"! #rug addiction/possession or tra=cking of proibited drugs8
9! #esertion or abandonment8:! #runkenness, esp were te laws of te
ost country proibit into*icating drinks8C! 1ambling, esp were te laws of te ost
country proibits te same8! Hnitiating/joining a strike or work stoppage
were telaws of te ost country proibitstrikes or similar actions8
4! 5reating trouble at te worksite or in tevessel8
3! Embe00lement of company funds or of moneys and properties of a fellow workerentrusted for delivery to kins or relativesin te >K8
2! Teft/robbery8$G! >rostitution8$$! Pandalism or destroying company
property8$"! 1unrunning or possession of deadly
weapons8$9!Unjust refusal to depart for te worksite
after all employment and traveldocuments ave been duly approved byte approp govt agency/ies8 and
$:! Piolation/s of te laws and sacredpractices of te ost country andunjustied breac of govt(approved EENTcontract by a worker
5<B>'<BH%E ?1'EEBENT
(consistent w/ te policy encouraging amicablesettlement of labor disputes %ec $G of '? 3G:"allows resolution by compromise of cases led w/te NL'5
( any compromise agreement on money claimsinclusive of damages sall be paid w/in : montsfrom te approval of te settlement
>enalties for Non(compliance of temandatory period for resolution of cases
$! Te salary of suc o=cial wo fails to
render is decision/resolution w/in teprescribed pd sall be, or caused to be,witeld until suc o=cial compliesterewit8
"! %uspension for not more tan 2G days8or
9! #ismissal w/ dis)ualication to oldany appointive public o=ce for C yrs
Billares & Lagda v NL'56 %56 seafarers arecontractual EE%
>remature Termination of 5ontract
Hf EE is terminated before end of contract w/o justcause, EE'% will be ordered to pay teirsalaries corresponding to te une*pired portionof teir EENT contract
>retermination Under '? 3G:"
? worker dismissed from overseas EENT w/o justcause as dened by law/contract is entitled tofull reimbursement of is placement fee w/
interest at $"R per annum, plus te salary forte une*pired portion of teir EENT contract!
#ue >rocess re)uired to terminate employmentE*6 in case of seamen – must be given written
notice of te carges against im, anda;orded a formal investigation were e candefend imself or tru a representative beforee can be dismissed & disembarked! Te EE'is re)uired to furnis im w/ " notices6 +$.written notice of carge8 and +". written noticeof dismissal
5ontracted but not #eployed6 >erfected 5ontract
#eat benets of %eafarers( entitled to deat and oter benets under
w/c ever is iger +foreign law or > law.( entitled to deat benets if deat occurs
during te term of is contract of employment, even if deat is not work(related deat is caused by teir owndoing
#isability – loss or impairment of a pysical ormental function resulting from injury/sickness
>ermanent disability – te inability of a worker toperform is job for more tan $"G days,regardless of <N e loses te use of any partof is body
Total #isability – disablement of an EE to earnwages in te same kind of work of similarnature tat e was trained for or accustomedto perform, or any kind of work w/c a person of is mentality and attainments could do! Ht doesnot mean absolute elplessness!
Hn disability compensation, it is not te injury w/c
is compensated, but rater it is te incapacityto work resulting in te impairment of one@searning capacity
#isability benets by seamen – a mattergoverned not only by medical ndings but bylaw & contract
( sall be paid beginning on te $st day of suc disability! Hf caused by an injury/sicknessit sall not be paid longer tan $"G consecdays e*cept were suc injury/sickness still
re)uires medical attendance beyond $"G daysbut not to e*ceed ":G days from onset of disability in w/c case benet for temporary
total disability sall be paid!
Hn case of di;ering medical assessmenta!. wen a seafarer sustains a work(related
illness/injury wile on board, istness/untness to work sall bedetermined by te company(designatedpysician!
b!. Hf te pysician appointed by te seafarerdisagrees w/ te company(designatedpysician@s assessment, te opinion of a9rd doctor may be agreed jointly bet teEE' and te seafarer to be te decision
nal and binding on tem
?gencies 1iven te #uty to promote te welfare& rigts of migrant workers6$! #D?"! #<LE9! ><E?:! <? – <verseas orkers elfare
?dministration – provides social & welfareservices including insurance coverage,legal assistance, placement assistanceand remittance services to Dilipinooverseas workers! Under '?3G:", it sallprovide te Dilipino migrant worker & isfaily assistance in te enforcement of contractual obligs by agencies, entitiesand/or teir principals8
C! '>B ( 'e(>lacement and Bonitoring 5enter– develops liveliood programs for tereturning workers to reintegrate tereturning migrant workers to te >society8
! NL'5 – tasked w/ tesettlement/adjudication of labor disputes
?rt $36 7?N <N #H'E5T KH'HN11'6 #irect iring of Dilipino workers for overseas
EENT is not allowed E*ceptions6
$! Bembers of #iplomatic corps8"! Hnternational organi0ations89! <ter employers as may be allowed by
#<LE8 and:! Name ires – individual workers wo are
able to secure contracts for overseas EENTon teir own e;orts and representationsw/o assistance/participation of any agency!
Teir iring noneteless, sall passtroug te ><E? for processing purposes
'ationale of te >roibition$! To assure te best possible terms &
conditions of work to te EE8 and"! To assure te foreign EE' tat e ires
( ?ll <Ds are re)uired to remit a portion of teirforeign e*cange earnings ranging from CGR (3GR depending on te worker@s kind of job, toteir families, dependents, and/orbeneciaries!
%eamen/Bariners – 3GRorkers for Dilipino 5ontractors & 5onstruction
companies – 4GR>rofessionals wose EENT contract provide for
lodging facilities – 4GR>rofessionals w/o 7oard & Lodging – CGR#omestic and oter service workers – CGR
E*ceptions to Bandatory 'emittance$! Dil servicemen working in U% military
installations8"! ere te worker@s immediate family
members, dependents, or beneciaries areresiding w/ im abroad8
9! Hmmigrants and Dil professionals and EEsworking w/ UN agencies or speciali0edbodies
E;ects of Dailure to 'emit$! orkers wo fail to comply w/ te
mandatory remittance re)ment sall besuspended/e*cluded from te list of eligible workers for overseas EENT!%ubse)uent violations sall warrant isrepatriation!
"! EE'% wo fail to comply sall be e*cludedfrom te overseas EENT program! >rivateEENT agencies/entities sall facecancellation or revocation of teir licensesor autority to recruit, w/o prejudice tooter liabilities under e*isting laws andregulations
>rivate %ectors tat can participate$! >rivate EENT agencies8"! >rivate recruitment agencies89! %ipping or manning agencies8:! %uc oter persons as may be autori0ed
by te %ec of #<LE8 and
C! 5onstruction contractors w/ a duly issuedautority to operate private recruitmententities
Vualications for >articipation$! 5iti0ensip re)uirement
a! Dilipino citi0ens8 orb! 5orporations, partnersips or
entities at least 4CR of teautori0ed and voting capital stockof w/c is owned & controlled byDilipino citi0ens!
"! 5apitali0ationa! >rivate EENT agency for local EENT
i! Dor single proprietorsip orpartnersip – minimum net
wort of "GGk pesosii! Dor corporations – aminimum paid up capital of Cook pesos
b! >rivate recruitment or manningagency for overseas EENT
i! Dor single proprietorsip orpartnersip – >"B minimumcapital
ii! Dor corps – >"B minimumpaid up capital, >rovided,tat tose w/ e*istinglicenses sall, w/in : yrsfrom e;ectivity ereof,increase teir capitali0ationor paid(up capital, as tecase may be, to >"B at terate of "CGW every yr!
9! Tose not oterwise dis)ualied by law oroter govt regulations to engage in terecruitment & placement of workers foroverseas EENT
#is)ualied from 'ecruitment & >lacement of orkers for <verseas EEnt weter for prot ornot$! Travel agencies & sales agencies of airline
companies8"! <=cers/members of te board of any corp
or members in a partnersip engaged inte business of a travel agency8
9! 5orps & partnersips, wen any of itso=cers, members of te board orpartners, is also an o=cer, member of teboard or partner of a corp or partnersipengaged in te business of a travel agency+interlocking o=cers.
:! >ersons, partnersips or corps wic avederogatory records, suc as but notlimited to6
a! Tose certied to ave derogatoryrecord/info by te N7H or by te?nti(illegal 'ecruitment 7ranc of te ><E?8
b! Tose against wom probablecause or prima facie nding of guiltfor illegal recruitment or oterrelated cases e*ists8
c! Tose convicted of cases and/orcrimes involving moral turpitude8
d! Tose agencies wose licensesave been previously cancelled orrevoked by ><E? for violation of '?
3G:", ># ::" as amended andteir H'' as well as te Labor5ode@s H''
e! <=cials/EE% of te #<LE or otergovt agencies directly involved inoverseas EENT program and teirrelatives w/in te :t degree of consanguinity or a=nity8 and
f! Tose wose License ave beenpreviously cancelled o revoked
?rt "26 N<N(T'?N%DE'?7HLHTJ <D LH5EN%E?UTK<'HTJ
$! Ht may be used only b te one in wosefavor it was issued8 ence, it cannot beassigned, conveyed or transferred to anyoter person/entity!
"! Ht must be used only in te place stated inte license! Tus, could only undertakerecruitment & placement activities in teregion were te license was granted!
9! Te recruitment & placement activitiesmust be undertaken at teir autori0edo=cial addresses!
:! >rovincial recruitment and/or job fairs maybe allowed only wen autori0ed by ><E?in writing!
S 5ange of ownersip of single proprietorsiplicensed to engage in overseas EENT sallcause te automatic revocation of te license!
?rt 9G6 7<N#% Te %ec of Labor sall promulgate a scedule of
fees for te registration of all applicants forlicense or autority!
?rt 9$! 7<N#%?ll applicants for license/autority sall post suc
cas and surety bonds as determined by te%ec of Labor including escrow deposits!
>urposes6$! To guarantee compliance w/ prescribed
recruitment procedures, rules ®ulations, and terms & conditions of EENT8 and
E*emption from 1arnisment• 5as bond led by applicants for
license/autority is not subj togarnisment by a judgment creditor of teagency!
• %ould te bond/deposit in escrow or anypart tereof be garnised, te samesould be replenised by te agency w/in$C days from notice from te ><E?! Dailureto replenis te same w/in te said pdsall cause te suspension of te license
Note6 ><E? as te power to enforce liabilityunder cas & surety bonds!
?rt 9"6 DEE% T< 7E >?H# 7J <'WE'%
• Te applicant can be carged w/ fees onlyafter e as obtained EENT or as actuallycommenced EENT
• Dees paid sall always be covered w/ teapprop receipt clearly sowing te amountpaid!
><E? as te power to6$! %uspend/cancel te license8 and"! <rder te refund/reimbursement of suc
illegally collected fees
>roibition on 5arging Dees$! >lacement fees cannot be collected from a
ired worker until e as signed te EENTcontract & sall be covered by receiptsclearly sowing te amt paid
"! Banning agencies sall not carge any feefrom seafarer(applicants for its recruitment& placement services! ?ll e*penses foriring seamen sall be souldered byforeign sipping principals!
9! No oter fees/carges, includingprocessing fees sall be imposed againstany worker!
?rt 9: & %ection '? 3G:"6 >'<KH7HTE#>'?5TH5E%6
Ht sall be unlawful for any indiv, entity, licenseeor older of autority6
$! To carge greater amt tan tat speciedin te scedule of allowable fees +illegale*action.8
"! To furnis any false info in relation torecruitment/EENT +false information.8
9! To give any false notice, testimony, etc! orcommit any act of misrepresentation tosecure a license or autority +falsestatements.8
:! To induce or attempt to induce a worker to)uit is job in lieu of anoter o;er unless itis designed to liberate te worker fromoppressive terms of EENT +pirating.8
C! To inAuence of attempt to inAuence anyperson/entity no to employ any workerwo as not applied for EENT troug isagency +inAuencing not to employ.8
! To engage in te recruitment/placement of jobs armful to public ealt, morality orto te dignity of te >K +armful jobs.8
4! To obstruct or attempt to obstructinspection by te Labor %ec or isautori0ed reps +obstruct inspection.8
3! To fail to le reports on te status of EENT,placement, etc! and suc oter matters asmay be re)uired by te %ec of Labor+failure to comply w/ rules & regulations.8
2! To substitute or alter EENT contracts w/ote approval of te %ec of Labor+alteration of contracts.8
$G!To become an o=cer or member of teboard of any corp engaged in te mgt of atravel agency8 and
$$!To witold travel docs from applicantworkers before departure for unautori0edmonetary considerations +witoldingdocuments.!
Non License or Non(Kolder of ?utority – anyperson/corp/entity w/c as not been issued avalid license or autority to engage inrecruitment & placement by te %ec of Labor,or wose license or autority as beensuspended, revoked or cancelled by te ><E?and te %ecretary!
1rounds for 'evocation of License$! Hncurring an accumulated 9 counts of
suspension by an agency based on naland e*ecutor orders w/in te validityperiod of its license8
"! Piolation/s of te conditions of license89! Engaging in acts of misrepresentation for
te purpose of securing a license orrenewal tereof8 and
:! Engaging in te recruitment or placementof workers to jobs armful to te publicealt or morality or to te dignity of te'>
1rounds for %uspension/5ancellation of License$! Te acts proibited under ?rt 9:8"! 5arging a fee before te worker is
employed or in e*cess of te autori0edamt8
9! #oing recruitment in places outside itsautori0ed area8
:! #eploying workers w/o processing trougte ><E?8 and
concurrent jurisdiction to suspend or cancel alicense
Liability of 'ecruitment ?gency• %olidarily liable w/ te foreign principal for
unpaid salaries of a worker it recruited!7efore recruiting, te agency is re)uired tosubmit a doc containing its power to sueand be sued jointly and solidarily w/ teprincipal or foreign(based employer forany of te violations of te recruitmentagreement, and te contracts of employment
Note6 Te recruitment agency may still besued even if agency agreement betrecruitment agency & principal is alreadysevered if no notice of te termination wasgiven to te EE
E*ception to Liability of 'ecruitment agency• en workers temselves insisted for te
recruitment agency to send tem back toteir foreign EE' despite teir knowledgeof its inability to pay teir wages
5ontract by >rncipal• Even if it was te principal of te manning
agency wo entered into contract w/ teEE, te manning agent in te >K is jointly& solidarily liable w/ te principal
%uability of Doreign 5orps• ? foreign corp tat, tru unlicensed
agents, recruits workers in te countrymay be suid in and found liable by >courts
5K 96 BH%5ELL?NE<U% >'<PH%H<N% +as amended
by '? 3G:".Hllegal 'ecruitment – any act of +5ET5KU>.canvassing, enlisting, transporting,contracting, utili0ing, or procuring workers andincludes +5'?>. contract services, referrals, oradvertising, promising for employment abroad,weter for prot or not, wen undertaken bya non(licensee or non(older of autority8>rovided tat any suc non(licensee or non(older of autority wo in any manner, o;ersor promises for a fee employment abroad to "or more persons sall be deemed so engaged!?lso includes te act of reprocessing workers
troug a job order tat pertains tonone*istent work, work di;erent from teactual overseas work, or work w/ a di;erentEE' weter registered or not w/ te ><E?• Ht sall likewise include te commission of
te ; proibited acts weter committedby a non(licensee or non(older of autority or a licensee or a older of autority6
$! Tose proibited practicesunder ?rt 9:8
"! Dailure to actually deploy w/ovalid reason as determined by
#<LE89! Dailure to reimburse e*pensesincurred by te worker inconnection w/ isdocumentation & processing forpurposes of deployment, incases were te deploymentdoes not actually take place w/ote worker@s fault8 and
:! 'ecruitment & placementactivities of agents orrepresentatives appointed by alicensee, wose appointments
were not previously authorizedby te ><E? sall likewiseconstitute illegal recruitment!
Elements of Hllegal 'ecruitment$! Te o;ender is a licensee/non(licensee or
older/non(older of autority engaged inte recruitment & placement of workers8and
"! Te o;ender undertakes eiter anyrecruitment activities devided under ?rt$9 +b. or any proibited practices in ?rt 9:
%imple Hllegal 'ecruitment – ere a person6$! undertakes any recruitment activity
dened under ?rt $9+b. or any proibitedpractice enumerated under ?rts 9: & 93 of te L58 and
"! does not ave a license or autority tolawfully engage in te recruitment &placement of any workers!
Hllegal 'ecruitment in Large %cale – furterre)uires a 9rd element6
9! Te o;ense is committed against 9/more
persons, individually or as a group
Hllegal 'ecruitment as Economic %abotage6$! en illegal recruitment is committed by
a syndicate +wen 9/more personsconspire or confederate w/ one anoter incarrying out an unlawful or illegaltransaction, enterprise or sceme.8
"! en illegal recruitment is committed in alarge scale +if committed against 9/morepersons individually or as a group
5onse)uences of 5onviction$! ?utomatic revocation of license/autority8"! Dorfeiture of te cas & surety bonds89! 5onviction for te crime of estafa, if found
guilty tereof
Hllegal 'ecruitment vs Estafa• Hllegal recruitment is malum proibitum,
• wereas estafa is malum in se +criminalintent necessary for conviction.
• a person may be carged & convicted forbot
?cts 5onstituting Estafa( te accused represented temselves to
complainants to ave te capacity to sendworkers abroad altoug tey did not ave anyautority or license, enabling tem to obtainplacement fee
Penue of criminal action arising from Hllegal'ecruitment
Te complainant may, at is option le at te 'T5of te province/city6a!. were te o;ense was committed8 or
b!. were te o;ended party resides at tetime of te commission of te o;ense
>rescriptive >eriod HmprisonmentDine
%imple C yrs $"("G yrs>$("B
Economic %abotage "G yrs Life>"(CB
Note6 Ba* penalty if te person illegally recruitedis less tan $3 y/o or committed by a non(licensee or non(older of autority
?bsence of receipts evidencing payment, notfatal to prosecution@s case for illegalrecruitment – as long as te witnesses canpositively sow troug teir respectivetestimonies tat te accused is te oneinvolved in proibited recruitment
Liability of Local EEnt agency – solidarily liable w/te foreig principal for unpaid salaries of aworker recruited! 7efore recruiting, te agencyis re)uired to submit a doc containing itspower to sue and be sued jointly and solidarily
w/ te principal or foreign(based EE' for any of te violations of te recruitment agreementand te contracts of EEnt
Liability of 5ompany Engaged in Hllegal'ecruitment – may be eld as principal,togeter is EE', if it is sown tat e actively & consciously participated in illegalrecruitment
Hssuance of searc warrant/warrant of arrest• ?rt 93 is unconstitutional inasmuc as it
gives te %ec of Labor te power to issuesearc or arrest warrants
•
Te e*ception is in cases of deportationwom te >resident or te 5ommissionerof Hmmigration may order arrested,following a nal roder of deportation
Note6 te %ec of Labor may order closure of illegal recruitment establisments becauseit is only administrative & regulatory innature
entry into te country for employmentpurposes and is issued after determination of
te non(availability of a person in te pK wois competent, able and willing at te time of application to perform te services for w/c tealien is desired• ?ll foreign nationals wo intend to engage
in gainful EENT in te >K sall apply for?E>
Employment >ermit 'e)uired$! all foreign nationals seeking admission to
te >K for te purpose of EENT8"! all non(resident foreign nationals already
working in te >K8
9! non(resident foreign nationals admitted tote >K on non(working visas and wo wisto seek EENT8 and
:! missionaries or religious workers wointend to engage in gainful EENT!
Note6 ?E> sould be secured regardless of tesource of compensation and duration of teEENT, weter te EENT is part(time ortemp
$! 5ompliance by te applicant EE' or teforeign national w/ te substantive &documentary re)uirements8
"! #etermination of #<LE %ec tat tere isno available Dilipino national wo iscompetent, able and willing to do te jobfor te EE'8 and
9! ?ssessment of te #<LE %ec tat teEENT of te foreign national will redoundto national benet
Note6 Understudy Training >rogram is nolonger a re)uirement in te issuance of ?E>and te EEr as now te option toimplement transfer of tecnology
'e)uisite for EENT of 'esident ?liens6•
Hmmigrants & resident aliens are notre)uired to secure a working permit! Teyare re)uired to secure teir ?lienEmployment 'egistration 5ert +?E'5.
E*emption from >ermit$! ?ll members of te #iplomatic service and
foreign govt o=cials accredited by and w/reciprocity arrangement w/ te > govt8
"! <=cers and sta; of international orgs of w/c te >K is a member, and teirlegitimate spouses desiring to work in te>K8
9! Doreign nationals elected as members of
1overning 7oard wo do not occupy anyoter position, but ave only voting rigtsin te corp8
:! ?ll foreign nationals granted e*emption bylaw8
C! <wners & representatives of foreignnationals wose companies are accreditedby te ><E? wo come to te >K for alimited period and solely for te purposeof interviewing Dilipino applicants for EENTabroad8
! Doreign nationals wo come to te >K toteac, present and/or conduct researcstudies in univs and colleges as visiting,e*cange or adjunct professors underformal agreements bet te univs orcolleges in te >K an foreign univs orcolleges8 or bet te > govt and foreigngovt8 provided tat te e*emption is on areciprocal basis8 and
4! 'esident foreign nationals!
1rounds for denial of ?pplication of ?E>$! Bisrepresentation of facts in te
application8"! %ubmission of falsied docs89! Te foreign national as a derogatory
record8 or:! ?vailability of a Dil wo is competent, able
and willing to te job intended for tealien!
1rounds for suspension of ?E>$! Te continued stay of te foreign national
my result in damage to te interest of teindustry of te country8 and
"! te EENT of te alien is suspended by teEE' or by te order of te court
1rounds for revocation of ?E>$! Non(compliance w/ any of tere)uirement/conditions for w/c te ?E>was issued8
"! Bisrepresentation of facts in teapplication8
9! %ubmission of falsied docs8:! Beritorious objection or information
against te EENT of foreign national asdetermined by te 'egional #ir8
C! Doreign national as a derogatory record8and
! EE' as terminated te EENT of te
foreign national!
Palidity of EENT >ermit• $ yr, unless te EENT contract,
consultancy services or oter modes of engagement provides oterwise, w/c sallin no case e*ceed Cyrs
• ne for working w/o or wit an e*pired ?E>>$GW for every year or a fraction tereof!
'ule on Nationali0ed 7usiness1'6 Doreigners may N<T be employed in certain
nationali0ed business!
?nti(#ummy Law "(? proibits te EENT of aliens in entities engaged in business wosee*ercise or enjoyment is reserved only to Dilsor to corporations or assocs wose capitalsould be at least GR Dil(owned
E*ceptions6$! ere te %ec of ustice specically
autori0es te EEnt of tecnical personnel8"! ?liens wo are members of te 7oard of
directors of corps in proportion to teirallowable participation in te capital of suc entities8 and
9! Enterprises registered under te <mnibus
Hnvestment 5ode in case of tecnical,supervisory or advisory positions, but for alimited pd!
?rt :$! >'<KH7HTH<N ?1?HN%T T'?N%DE' <D EENT$! ?liens sall not transfer to anoter job or
cange is EE' w/o prior approval of te%ec of Labor8
"! Non(resident aliens sall not take up EENTin violation of te provisions of te 5ode!
Note6 Piolations of te abovementioned actswill subj te alien to te punisment in ?rt"32 & "2G and to deportation after serviceof sentence
$! To elp meet te demand of te economyfor trained manpower8
"! To establis a national apprenticesipprogram8 and
9! To establis apprenticesip standards forte protection of apprentices!
?rt C36 #EDHNHTH<N <D TE'B%
?pprenticesip – practical training on te jobsupplemented by related teoreticalinstruction, for a igly skilled or tecnicalinstruction for a period of 9( monts
?pprentice – a person undergoing training for anapproved apprenticeable occupation during anestablised period assured by anapprenticesip agreemt
?pprenticeable <ccupation – an occupationo=cially endorsed by a tripartite body andapproved for apprenticesip by te TE%#? +nolonger te %ec of Labor.
?pprenticesip ?greement – an EENT contractwerein te EE' binds imself to train teapprentice and te apprentice in turn accepts
te terms of training<n(te(job training – practical work e*perience
troug actual participation in productiveactivities given to or ac)uired by an apprentice
Kigly tecnical industries – a trade, business,enterprise, industry or oter activity, w/c isengaged in te application of advancedtecnology
?rt C26 VU?LHDH5?TH<N% <D ?>>'ENTH5E%
$! ?t least $C y/o, provided tat if below $3y/o, e sall not be eligible for a0ardousoccupation8
"! >ysically t for te occupation in w/c edesires to be trained89! >ossess vocational aptitude and capacity
for te particular occupation asestablised troug appropriate tests8 and
:! >ossess te ability to compreend andfollow oral & written instructions!
Note6 Total pysical tness is not re)uired of te apprentice(applicant unless it isessential to te e*peditious and e;ectivelearning of te occupation! <nly pysicaldefects w/c constitute real impediments toe;ective perf as determined by te plant
apprenticesip committee may disp)ualifyan applicant
?rt G6 EB>L<JBENT <D ?>>'ENTH5E%Vualications to be met by EE'6
$! <nly EE'% in igly tecnical industriesmay employ apprentices8 and
"! <nly in apprenticeable occupations asdetermined by te TE%#?!
'e)uisites for a Palid apprenticesip$! Vualications of apprentice are met8"! ?pprentice earns not less tan 4CR of te
C! %cedule of te work processes of tetrade/occupation in w/c te apprenticesall be trained and te appro*! time to be
spent on te job in eac process8! 1raduated scale of wages to be paid tote apprentice8
4! >robationary pd of te apprentice duringwc eiter party ay summarily terminateteir agreemt8 and
3! ? clause tat if te EE' is unable to fulllis training oblig, e may transfer teagreemt, w/ te consent of te apprenticeto any oter EE' wo is willing to assumesuc oblig!
orking Krs – sall not e*ceed te ma* number
of rs prescribed by law, if any, for a worker of is age and se*! Time spent in compulsorilyteoretical instruction sall be considered rsof work! ?n apprentice not oterwise barred bylaw from working 3rs may be re)uisted by isEE' to work overtime and paid accordingly!
$! Te apprentice, if of age, oterwise, by isparent or guardian, or in te latter@sabsence, by an autori0ed rep of TE%#?8and
"! EE' or is duly autori0ed rep
?rt 96 PENUE <D ?>>'ENTH5E%KH> >'<1'?B$! itin te sponsoring rm, establisment
or entity8 or"! itin a #<LE training center or oter
public training institutions8 or9! Hnitial training in trade fundamentals in a
training center or oter institutions w/subse)uent actual work participation w/inte sponsoring rm or entity during tenal stage of training!
?rt :6 %><N%<'HN1 <D ?>>'ENTH5E%KH>>'<1'?B%
7J6$! Te plant, sop or premises of te EE' or
rm concerned if te apprenticesipprogram is organi0ed by an indiv EE' orrm8
"! Te premises of one or several rmsdesignated for te purpose by teorgani0er of te program if suc organi0eris an assoc of EE'%, civic group and telike8 and
9! #<LE Training 5enter or oter publictraining institutions w/ w/c te TE%#? as
made approp arrangements!
?rt C(46 PH<L?TH<N <D ?>>'ENTH5E%KH>?1'EEBENT
?rt C6 Hnvestigation of violation of apprenticesipagreement$! Eiter party to an agreemt may terminate
te same after te probationary pd onlyfor a valid cause!
"! ?ction may be initiated upon complaint of any interested person or upon #<LE@s owninitiative!
Palid 5ause to terminate agreement$! 7y te EE'6
a! Kabitual absenteeism in <T andrelated teoretical instructions8
b! illful disobedience of companyrules or insubordination to lawfulorder of a superior8
c! >oor pysical condition, permanentdisability or prolonged illness w/cincapacitates te apprentice from
working8d! Teft or malicious destruction of company property and/ore)uipment
e! >oor e=ciency or perf on te job orin te classroom for a prolongedperiod despite warnings duly givento te apprentice8 and
f! Engaging in violence or oter formsof gross misconduct inside teEE'@s premises
"! 7y te apprentice6a! %ubstandard or deleterious working
conditions w/in te EE'@s premises8b! 'epeated violations by te EE' of
te terms of te apprenticesipagreemt8
c! 5ruel or inumane treatment byte EE' or is subordinates8
d! >ersonal problem s/c in te opinionof te apprentice sall prevent imfrom a satisfactory perf of is job8and
e! 7ad ealt or continuing illness!
?rt 6 ?ppeal• Te decision of an autori0ed agency of
te #<LE may be appealed to te %ec of Labor w/in C days form rcpt of te adversedecision!
• Te decision of te %ec of Labor sall benal & e*ecutor!
?rt 4 E*austion of ?dministrative 'emedies$! Te e*austion of administrative remedies
is a condition precedent to te institutionof action!
"! Te plant apprenticesip committee sallave initial responsibility for settlingdi;erences arising out of apprenticesipagreements!
>etitioner ?ntonio %errano was ired byrespondents 1allant Baritime %ervices, Hnc! andBarlow Navigation 5o!, Hnc!, under a ><E?(
approved contract of employment for $" monts,as 5ief <=cer, wit te basic montly salary of U%X$,:GG, plus X4GG/mont overtime pay, and 4days paid vacation leave per mont!
<n te date of is departure, %errano wasconstrained to accept a downgraded employmentcontract upon te assurance and representationof respondents tat e would be 5ief <=cer byte end of ?pril $223!
'espondents did not deliver on teir promise to
make %errano 5ief <=cer!
Kence, %errano refused to stay on as second<=cer and was repatriated to te >ilippines,serving only two monts and 4 days, leaving anune*pired portion of nine monts and twenty(tree days!
Upon complaint led by %errano before te Labor?rbiter +L?., te dismissal was declared illegal!
<n appeal, te NL'5 modied te L? decisionbased on te provision of '? 3G:"!
%errano led a Botion for >artial 'econsideration,but tis time e )uestioned te constitutionalityof te last clause in te Ct paragrap of %ection$G of '? 3G:"!
H%%UE%6
$! eter or not te subject clause violates%ection $G, ?rticle HHH of te 5onstitution on non(impairment of contracts8
"! eter or not te subject clause violate%ection $, ?rticle HHH of te 5onstitution, and%ection $3, ?rticle HH and %ection 9, ?rticle IHHH onlabor as a protected sector!
KEL#6
<n te rst issue!
Te answer is in te negative! >etitioner@s claimtat te subject clause unduly interferes wit testipulations in is contract on te term of isemployment and te *ed salary package e willreceive is not tenable!
Te subject clause may not be declared
unconstitutional on te ground tat it impingeson te impairment clause, for te law wasenacted in te e*ercise of te police power of te
%tate to regulate a business, profession or calling,particularly te recruitment and deployment of <Ds, wit te noble end in view of ensuringrespect for te dignity and well(being of <Dswerever tey may be employed!
<n te second issue!
Te answer is in te a=rmative!
To Dilipino workers, te rigts guaranteed under
te foregoing constitutional provisions translateto economic security and parity!
Upon cursory reading, te subject clause appearsfacially neutral, for it applies to all <Ds!Kowever, a closer e*amination reveals tat tesubject clause as a discriminatory intentagainst, and an invidious impact on, <Ds at twolevels6
Dirst, <Ds wit employment contracts of lesstan one year vis(Y(vis <Ds wit employmentcontracts of one year or more8
%econd, among <Ds wit employment contractsof more tan one year8 and
Tird, <Ds vis(Y(vis local workers wit *ed(period employment8
Te subject clause singles out one classicationof <Ds and burdens it wit a peculiar
disadvantage!
Tus, te subject clause in te Ct paragrap of %ection $G of '!?! No! 3G:" is violative of terigt of petitioner and oter <Ds to e)ualprotection!
Te subject clause or for tree monts for everyyear of te une*pired term, wicever is less- inte Ct paragrap of %ection $G of 'epublic ?ctNo! 3G:" is #E5L?'E# UN5<N%THTUTH<N?L!
employment, did ten and tere, willfully,unlawfully and criminally recruit, contract andpromise to deploy, for a fee te erein
complainants, namely, Hmelda #! 7amba,1eraldine B! Lagman and ?lma E! %ing, for workor employment in Los ?ngeles, 5alifornia, U!%!?!in Nursing Kome and 5are 5enter!
>rosecution presented tree witnesses,namely Hmelda 7amba, 1eraldine Lagman and?lma %ing!
?ccording to 7amba, se met teappellant on a bus! %e was on er way to %BNort Edsa were se was a company nurse!?ppellant introduced imself as a recruiter of workers for employment abroad! ?ppellant tolder e could elp er get employed as nurse!
?ppellant gave is pager number and instructeder to contact im is se@s interested! %ometimein anuary $22, appellant fetced er at ero=ce, went to er ouse and gave im tenecessary documents and anded to appellantte amount of U%X9GG!GG and te latter soweder a potocopy of er supposed U% visa!Kowever, te appellant did not issue a receipt forte said money! Tereafter, appellant told er toresign from er work because se was bookedwit Nortwest ?irlines and to leave for U%? onDeb, $22! <n te sceduled departure, appellantfailed to sow up! Hnstead, called and informeder tat e failed to give te passport and U%visa because se ad to go to province becauseis wife died! Trying to contact im to tesupposed residence and otel were etemporarily resided, but to no avail!
iness Lagman testied tat se is aregistered nurse! Hn anuary $22, se went to %BNort Edsa to visit er cousin 7amba! ?t tat time7amba informed er tat se was going to meetto appellant! 7amba invited Lagman to go witer! Te appellant convinced tem of is ability tosend tem abroad! <n teir ne*t meeting,Lagman anded to te latter te necessarydocuments and an amount of U%X9GG!GG and "bottles of black label witout any receipt issuedby te appellant! Dour days after teir meeting, atelepone company called er because ernumber was appearing in appellants cell ponedocuments! Te caller is trying to locate im ase was a swindler! %e became suspicious andtold 7amba about te matter! <ne week beforeer sceduled Aigt, appellant told er e couldnot meet tem because is moter passed away!
Lastly, ?lma %ing, wo is also aregistered nurse, declared tat se rst met teappellant at %B Nort Edsa wen Hmelda 7ambaintroduced te latter to er! ?ppellant told er
tat e is an undercover agent of D7H and ecould * er U% visa! <n teir ne*t meeting, segave all te pertinent documents! Tereafter, segave >$G,GGG to te appellant covering alf priceof er plane ticket! Tey paged te appellanttroug is beeper to set up anoterappointment but te appellant avoided tem ase ad many tings to do!
Te accused amilosa testied on directe*amination tat e never told 7amba tat e
could get er a job in U%?, te trut being tatse wanted to leave %B as company nursebecause se was aving a problem tereat!
7amba called im several times, seeking advicesfrom im! Ke started courting 7amba and wentout dating until latter became is girlfriend! Kemet Lagman and %ing tru 7amba! ?scomplainants seeking advice on ow to apply for
jobs abroad, lest e be carged as a recruiter, emade 7amba, Lagman and %ing sign separatecertications, all to e;ect tat e never recruitedtem and no money was involved! 7amba led anillegal recruitment case against im because tey)uarreled and separated!
'T5 rendered judgment nding accusedguilty beyond reasonable doubt of illegal
recruitment in large scale!=SSUE: Hllegal 'ecruitment in a large scaleZ>ELD: ?'ecruitment and placement[ refers toany act of canvassing, enlisting, contracting,transporting, utili0ing, iring, or procuringworkers, and includes referrals, contract services,promising or advertising for employment, locallyor abroad, weter for prot or not! >rovided,
Tat any person or entity wic, in any manner,o;ers or promises for a fee employment to two ormore persons sall be deemed engaged inrecruitment and placement!
Hllegal recruitment sall mean any act of canvassing, enlisting, contracting, transporting,utili0ing, iring, or procuring workers and includesreferring, contract services, promising oradvertising for employment abroad, weter forprot or not, wen undertaken by a non(licenseeor non(older of autority! >rovided, Tat anysuc non(licensee or non(older wo, in anymanner, o;ers or promises for a fee employmentabroad to two or more persons sall be deemedso engaged!
To prove illegal recruitment in large scale,te prosecution is burdened to prove tree +9.essential elements, to wit6 +$. te person cargedundertook a recruitment activity under ?rticle$9+b. or any proibited practice under ?rticle 9:of te Labor 5ode8 +". accused did not ave telicense or te autority to lawfully engage in terecruitment and placement of workers8 and +9.accused committed te same against tree ormore persons individually or as a group! ?sgleaned from te collective testimonies of tecomplaining witnesses wic te trial court andte appellate court found to be credible anddeserving of full probative weigt, teprosecution mustered te re)uisite )uantum of evidence to prove te guilt of accused beyondreasonable doubt for te crime carged! Hndeed,
te ndings of te trial court, a=rmed on appealby te 5?, are conclusive on tis 5ourt absentevidence tat te tribunals ignored,misunderstood, or misapplied substantial fact oroter circumstance!
Te failure of te prosecution to adduce inevidence any receipt or document signed byappellant were e acknowledged to avereceived money and li)uor does not free imfrom criminal liability! Even in te absence of
money or oter valuables given asconsideration for te [services[ of appellant,te latter is considered as being engaged in
recruitment activities!Ht can be gleaned from te language of ?rticle $9+b. of te Labor 5ode tat te act of recruitment may be for prot or not! Ht issu=cient tat te accused promises or o;ersfor a fee employment to warrant conviction forillegal recruit
weter for prot or notb! %uc standards apply only if teree*ists EE'(EE relationsip
EI5E>TH<N% on 5onditions of EEnti! 1overnment employees
EE% of govt agencies& govt corps
ii! Banagerial employees –tose wose primary dutyconsists of te mgt of teestablisment in w/c teyare employed or of adept/subd tereof, and tooter o=cers/members of te managerial sta;
( under te direct supervision of te EE',and assist in te planning, organi0ing,sta=ng, directing controlling,communicating and in making decisions inattaining te company@s set goals &objectives
a! Hncludessupervisiors +onlyas regards ?rt 3". –likewiseresponsible for tee;ective & e=cientoperation of teirrespective depts
iii! Dield personnel – non(agricultural employeeswo regularly performteir duties away from teprincipal place of businessor branc o=ce of teemployer and woseactual ours of work in teeld cannot bedetermined w/ reasonablecertainty
c! tose wose performance of teir job/service is not supervised by te E'or is rep, te workplace being awayfrom te principal o=ce and woseours & days of work cannot bedetermined w reasonable certainty8ence tey are paid specic amount forrendering specic service or performingspecic work!
a! drivers tat arere)uired to be at specicplaces at specic times are
not eld personnelb! in case of sermenaltoug performing non(agri work away from teo=ce, te fact tat teyave no coice but toremain on board te vessel,tey are still under constantsupervision by te E' trute vessel@s patron/master
iv! Employer@s familymembers wo are
dependent on im forsupportv! #omestic elpers
ouse personnel ired by a rankingcompany o=cial, a foreigner, but paid forby te company itself, to maintain a sta; ouse provided for te o=cialregular EE
vi! >ersons in te personalservice of anoter
vii! orkers paid by result –per piece/per task
( laborer/EE w/ no *ed salary, wag, orrenumeration but receiving acompensation from is E' an uncertain &variable amount depending upon te workdone or te result of said work +piecework., irrespective of te time employed
EE'(EE 'elationsip – is not dependent upon teagreement of te parties! Te caracteri0ationby law prevails over tat in te contract! tee*istence of an EE'(EE relsp is not a matterof stipulation but a )uestion of law
d! depends on te facts of eac case
5ore/Non(core obse! EE'(EE relsip may comver
core/non(core activities of teEE'@s business!
f! Te kind of work is not tedenitive test of weter teworker is an EE or not!
Employer – any person, natural or juridical,domestic or foreign, wo carries on in te >Kany trade, business, industry, undertaking oractivity of any kind and uses te services of anoter person wo is under is order asregards employment
Employee – any person wo performs services foran EE' in w/c eiter or bot mental & pysicale;orts are used and wo receivescompensation for suc services, were tere isan EE'(EE relationsip
TE%T% <D EENT 'elsip6i! 'igt of 5ontrol Test – were te
person for wim te services areperformed reserves a rigt to controlnot only te end to be acieved but
conditions prevailing bet te parties +likepayrolls. in determining te e*istence of EE'(EE 'elsip!
ELEBENT% <D EE(EE' 'EL%KH> +Dour(fold Test.i! te selection and engagement of te
EE8ii! te payment of wages;iii! te power of dismissal;iv! te employer@s power to control te EE
w/ respect to te means & metods byw/c te work is to be accomplised+most important.
Hndependent contractors – can employ oters towork & accomplis contemplated result w/oconsent of contractee, wile EE cannotsubstitute anoter in is place w/o consent of is EE'!
"! Te Economic #ependence Test – observes teneed to consider te e*isting conditions bette parties
7est approac6 ?pply te two(tiered testinvolving6$! te putative employer@s power to control
te EE w/ respect to te means andmetods by w/c te work is to beaccomplised8 and
"!te underlying economic realities of teactivity or relationsip
a! te e*tent to w/c te servicesperformed are an integral part of te employer@s business8
b! to te e*tent of te worker@sinvestment in e)uipment andfacilities8
c! te nature and degree of controle*ercised by te employer8
d! te worker@s opportunity for protand loss8
e! te amount of initiative, skill, judgment or foresigt re)uired forte success of te claimedindependent enterprise8
f! te permanency and duration of te relationsip between teworker and te employer8 and
g! te degree of dependency of teworker upon te employer for iscontinued employment in tat lineof business
%tandard of economic dependence – weter teworker is dependent on te alleged employerfor is continued employment in tat line of business
Evidence of employmenti! id cardii! voucers of salariesiii! sss registrationiv! memorandum
?bsence of EE@s name in payroll does not meane is not an EE
Bode of 5ompensation – not a test of EEntstatus8 pakyaw basis does not mean workersare independent contractors
Hndependent contractors( generally rely on teirown resources
S Unions and unregistered associations can beEE's of te persons wo work for tem
1'6 ?n employee is not a contractor8 a contractoris not an employee!
1'6 ile EE(E' relationsip e*ists bet a jobcontractor and te workers tat e ires, no
suc relationsip e*ists bet tose workers andte job contractee, te contractor@s client! Labor(only contractor – serve as an agent of
te true employer by merely recruiting &supplying people +proibited.!
5onditions of Employment – laid down by law orby contract concluded individually w/ an EE orcollectively w/ a group
• may also arise from establisedpractice in te enterprise
" Winds of Employment 5onditionsa! %tatutory – provided for by law
b! Poluntary – initiated by te E'unilaterally or by contractualstipulation
?n employer is free to regulate, accdg to is owndiscretion & judgment, all aspects of EENT,including iring, work assignments, workingmetods, time, place and manner of work,tools to be used, processes to be followed,supervision of workers, working regulations,transfer of EE%, work supervision, lay(o; of workers and discipline, dismissal and recall of workers!
• Employers ave te rigt to
e*ercise management prerogativesto strengten is businesscompetitiveness unlawful/unjust/unfair8 so long as tey aree*ercised in 1D for teadvancement of is interest andnot for te purpose of defeating/circumventing te 's of te EE%
a! Bay devise & implementnew salary scales applicableonly to future EE%! +salarydistortion.
Bembers/<=cers of te Banagerial %ta;6 #uties& 'esponsibilities
$! Teir primary duty consists of teperformance of work directly related tomgt policies of teir E'8
"! Tey customarily & regularly e*ercisediscretion and independent judgment8
9! Tey regularly & directly assist temanagerial EE wose primary dutyconsists of te mgt of a dept of te
work along speciali0ed/tecnical linesre)uiring special training, e*perienceor knowledge8
C! Tey e*ecute, under gen supervision,special assignments and tasks8 andtey do not devote more tan "GR of teir ours worked in a work(week toactivities w/c are not directly & clearlyrelated to te performance of teirwork
Art () NOR@AL >OURS O< OR
•
sall not e*ceed 3 rs/day
>urpose of 3(r Labor law – not only to safeguardte ealt & welfare of te laborer/EE, but in away to minimi0e unemployment by forcingE's, in cases were more tan 3(r operationis necessary, to utili0e di;erent sifts tolaborers/EEs working only for 3 rs eac
>art(time ork – not proibited! +at te lawregulates is work e*ceeding 3rs.1'6 age & benets of a part(timer are inproportion to te number of rs worked!
ork rs of Kealt >ersonnelKealt personnel – sall include, but not limitedto, resident pysicians, nurses, nutritionists,dieticians, parmacists, social workers, labtecnicians, paramedics, psycologists,midwives, attendants, and all oter ospital &clinic personnel like medical secretaries
'esident pysicians – customary practice to workfor ": rs a day violates te limitations in ?rt39! wen tey are under trainingprogram/agreement bet te residents and teospital accredited by te govt
Kospital EEs – are entitled to a full weekly salaryw/ apid " days o; if tey ave completed te:Gr/Cday workweek +4days pay for C dayswork.
Kealt personnel in 1ovt service – covered by '?49GC
Art F) >OURS ORED sall inclue:7) all ti!e uring wGc an EE is re.uire to be
on ut' or to be at a %rescribewor/%lace- an
;) all ti!e uring wGc an EE is su,ere or%er!itte to wor/
Rest %erios o# sort uration uring wor/ rs sall be counte as ours wor/e
>rinciples in #etermining Kours rked$! ?ll rs are rs worked w/c te EE is
re)uired to give to is E', regardless of <N suc rs are spent in productivelabor or involve pysical/mentale*ertion8
"! ?n EE need not leave te premises of te workplace in order tat is restperiod sall not be counted, it beingenoug tat e stops working, mayrest completely and may leave isworkplace, to go elsewere, weterw/in or outside te premises of isworkplace8
9! Hf te work performed was necessary,
or it beneted te E', or te EE couldnot abandon is work at te end of isnormal working rs because e ad noreplacement, all time spent for sucwork sall be considered as rsworked, if te work was w/in teknowledge of is E'/immediatesupervisor8
:! Te time during w/c an EE is inactiveby reason of interruptions in is workbeyond is control sall be consideredtime eiter if te imminence of teresumption of work re)uires te EE@spresence at te place of work or if teinterval is too brief to be utili0ede;ectively & gainfully in te EE@s owninterest!
>re/>ostliminary ?ctivities• >reliminary +before work. and
postliminary +after actual work.activities are deemed performedduring working rs, were sucactivities are controlled/re)uired byte E' and are pursued necessarily& primarily for te E'@s benet
aiting Time• weter waiting time constitutes working
time depends on te circumstances oneac particular case
• controlling factor is <N time spent inidleness is so spent predominantly for teE'@s benet or for te EE@s
$! Engaged to ait – waiting timespent by EE sall be consideredas working time if waiting isconsidered an integral part of
is work or if te EE isre)uired/engaged by an E' towait
"! aiting to Engage – idle time isnot work time
orking ile Eating1'6 EE must be completely relieved from duty for
te purpose of eating regular meals! Te mealtime is not compensable if e is completely
free from duties during is meal period eventoug e remains in te workplace!
EE is not relieved if e is re)uired to perform
is duties weter active/inactive, wile eating+e*! %tand(by for emergency work.
orking ile %leeping1'6 %leeping time may be considered working
time if it is subj to serious interruption or takesplace under conditions substantially lessdesirable tan would be likely to e*ist at teEE@s ome!
if tere is an opportunity for comparativelyuninterrupted sleep under fairly desirableconditions, event toug EE is re)uired toremain on or near te E'@s premises and must
old imself in readiness for a call to actionENT!• depends upon te e*press/implied
agreement of te parties, or inabsence of an agreement, upon tenature of te service and itsrelation to te working time!
<n 5all• altoug EE can rest completely and may
not be actually at work, if tey arere)uired to be in teir place of workbefore/after te regular working rs and
w/in te call of teir E's, te time teystay in te place of work sould not bediscounted from teir working rs
• EE cannot use te time e;ectively for isown purposes is working wile on call!
• Not on call6 EE is not re)uired to remain onte E'@s premises but is merely re)uiredto leave work at is ome or w/ companyo=cials were e may be reaced
• >ublic ealt workers@ <n call status – refersto a condition wen public ealt workersare called upon to respond to urgent orimmediate need for ealt/medical
assistance or relief work duringemergencies suc tat e/se cannotdevote te time for is/er own use!
it 5ellular pone or <ter 5ontact #evice• if EE is kept w/in reac- troug a
cell pone, e is N<T on call
Travel Time – time spent walking, riding, ortraveling to/from place of work
a! Travel from ome to work – notworktime wen EE receives anemergency call outside is regular
working rs and is re)uired to travelto is regular place of business orsome oter worksiteworking time
b! Travel tat is all in a day@s work –time spent by an EE in travel as partof is principal activityrs worked
c! Travel away from ome – travel tatkeeps an EE away from omeovernigt worktime wen it cutsacross te EE@s workday
Lectures, Beetings and Training >rograms – notworktime if6
a! ?ttendance is outside of te EE@s
regular working rs8b! ?ttendance is in fact voluntary8 andc! Te EE does not perform any
productive work during sucattendance!
S must meet all criteria
1rievance Beeting – time spent in adjustinggrievance bet E' & Ee during te time te EEsare re)uired by te E' to be on tepremisesrs worked if a bona de union is involved dependson te 57? or te custom practice under te
57?
%emestral 7reak – rs worked by teacers inprivate scools
<'W K<U'% <D %E?BEN• tey need not leave te boat in
order tat is rest period not becounted
'e)uisites for non(counted rest perioda! e ceases to workb! may rest completelyc! leave or may leave at is will te
spot were e actually stays wileworking, to go somewere else,weter w/in or outside te sip
K<U'% <'WE#6 EPH#EN5E & #<U7T1'6 en an E' alleges tat is EE works lesstan te normal rs of ENT as provided for in law,e bears te burden of proving is allegation w/clear & satisfactory evidence
Art H) @EAL "ER=ODS
• must be at least Gminutes time(
o; for regular meals1'6 not compensableE*ceptions6
$! were te lunc period or mealtime ispredominantly spent for te E'@sbenet +considered overtime. 8or
"! were it is less tan G minutes +butnot less tan "Gminutes. must be witfull pay wen6
• were work is non(manual+does not involve strenuouspysical e*ertion.8
• were te establisment
regularly operates not less tan$rs a day9! in cases of actual or impending
emergencies or tere is urgent work tobe performed on macineries,e)uipment or installations to avoidserious loss w/c te E' wouldoterwise su;er8
:! were te work is necessary to preventserious loss of perisable goods
• Hf less tan "G minutes itbecomes only a rest period andis tus considered work time
Note6 Beal periods during overtime work is notgiven to workers performing <T bco0 <T isusually for a sort period
%ortened Beal 7reak Upon EE@s re)uest• EEs may re)uest tat teir meal pd
be sortened so tat tey canleave work earlier notcompensable
'e)uisites$! EEs voluntarily agree in writing and waive teir
<T pay8"! No diminution in te salary and oter fringe
benets of te EEs already e*isting89! ork is not pysically strenuous and tey areprovided w/ ade)uate co;ee breaks in temorning & afternoon8
:! Palue of benets is e)ual to te compensationdue tem8
C! <T pay will become due and demandable if tey are permitted/made to work beyond :69Gpm8 and
! Te arrangement is of temporary duration!
Note6 Te 3(r work period does not include temeal break! EE@s may leave te company
premises as long as tey return to teir postson time!
Art 8 N=6>T S>=<T D=<<ERENT=AL( at least $GR of is regular wage for eac r
of work performed bet $G>B and ?B( given as premium for working at a time for
sleep & rest( in addition to te e*ceptions in ?rt 3",
N%# is n/a to EEs of retail and serviceestablisments regularly employing Cemployees and below
( if work done from $Gpm(am is <T work,
ten te $GR nigt sift di;erential souldbe based on te <T rate( not waivable +founded on public policy.( te receipt of <T pay will not preclude
payment of N%# pay( burden of proof of payment of N%# ( E'
Art $) OERT=@E OR
<vertime >ay – additional compensation for workperformed beyond 3rs w/in te worker@s ":(rworkday regardless weter te work covers "calendar days
7asis – cas wage only, w/o any deduction'ates
$!<T on a regular work day – at least "CRtereof
"!<T on a oliday or rest day – at least 9GRtereof
S 57? may stipulate iger <T pay rate
?ctual ork #ays as #ivisorPALEA v PAL (19!" – >?LE? & >?L %upervisors
?ssoc +>?L%?., commenced an action v >?L in
te 5H' praying tat te latter be ordered torevise te metod of computing te basic daily& ourly rates of its montly(salaried EEs and
necessarily to pay tem teir accrued salarydi;erentials
>?L@s Dormula6montly salary * $"/9C days in a yr \ 7asicdaily ratebasic daily rate/3 – 7asic ourly rate
>roposed Dormula6Bontly salary * $"/actual working days \7#'7#'/3 \ 7K'
>aid Unworked days of a montly(paid EE( E' may stipulate tat EE@s montly salary
constitutes payment for all te days of temont incl rest days & olidays if wenconverted into its daily e)uivalent wouldstill meet minimum wagelegal
Kow work day- is counted? day – te ":(r period w/c commences from te
time te EE regularly starts to work( regardless of te day of te week or r of
te day( any work in e*cess of te 3rs w/in te ":(r pd is considered as <T regardless of weter te work covers " calendar days
( any work in e*cess of 3 rs not falling w/inte ":(r pd is not considered as <T work
a! 7roken Krs of ork – te minimum normalworking rs need not be continuous toconstitute as te legal working day of 3 rs aslong as te 3 rs is w/in a work day
b! ork in #i;erent %ifts in a ork day – work ine*cess of 3rs w/in a work day is considered as<T regardless of weter tis is performed in a
work sift oter tan at w/c te EE regularlyworks• EE@s sift is $Gpm(am! Ke is asked to take
a sift of anoter EE wo is absent from"pm($Gpm +is regular work day would befrom $Gpm($Gpm. te "nd sift isconsidered <T because it is still w/in iswork day
1'6 ?n e*press instruction from te E' to te EEto render <T work is not re)uired for te EE tobe entitled to <T pay! Ht is su=cient tat te EEis permitted or su#ered to wor$% Neiter is an
e*press approval by a supervisor needed!
6 <n rest days & olidays, written authority after o=ce rs is re)uired for te EE to beentitled to compensation• ? verbal instruction to render <T work
prevails over a memorandum proibitingsuc work!
• <T claim is not justied for days were nowork was re)uired and no work could be
<T ork of %eamen – weter or not te sailorsare entitled to <T pay is not weter tey wereon board and cannot leave sip beyond teregular 3 working rs a day, but weter teyactually rendered service in e*cess of 3 rs
<T work must be proven by factual & legalbasis
?ction to 'ecover 5ompensation( estoppel & laces cannot be invoked
against EEs bco0 tat would be contrary tote spirit of te 3(r Labor Law, under w/cte laborers cannot waive teir ' to e*tra
compensation( <T pay in arrears retroacts to te date wenservices were actually rendered
1'6 aiver or )uitclaim – not a waiver of <T pay!?ny stipulation in te contract tat te laborersall work beyond te regular 3 rs w/o addtlcompensation for te e*tra rs is contrary tolaw and null and void
aiver of <T >ay1'6 <T pay cannot be waived e*pressly or
impliedly! ?ny contrary stipulation is null andvoid!
E*eptions$! en te waiver is made in consideration of
benets & privileges w/c may be more tanwat will accrue to tem in <T pay8 and
"! 5ompressed workweek +5.– te number of work days is reduced but te number of workrs in a day is increased to more tan 3, but no<T pay may be claimed!'e)uisites of 5ompressed orkweek to bevalid6$!Te sceme is e*pressly and voluntarily
supported by majority of te EEs a;ected8"!Hn rms using substances, or operating in
conditions tat are a0ardous to ealt, acertication is needed from an accreditedsafety org or te rm@s safety committeetat work beyond 3rs is w/in telimits/levels of e*posure set by #<LE@soccupational safety & ealt standards8
9!Te #<LE 'egional <=ce is notied!
E;ects of a 5ompressed orkweek$! Unless tere is a ore favorable practice
e*isting in te rm, work beyond 3rswill not be compensable by <Tpremium, provided te total number of rs worked per day sall not e*ceed
$"rs! +ork performed beyond $"rs aday or :3rs a week<T.
"! EE@s under a 5 sceme are entitledto meal periods of at least G minutes!
Te ' of EEs to restday, oliday pay,rest day pay or leave in accdance w/law/57?/company practice sall not beimpaired!
9! ?doption of te 5 sceme sall in nocase result in diminution of e*isting
benets! 'eversion to te normal 3(rwork day sall not constitute diminutionof benets! +'eversion is considered a
legitimate e*ercise of mgt prerogative,provided tat te E' sall give te EEsprior notice of suc reversion w/in areasonable period of time!
S EE may validly waive te ' to <T under a5 program, provided e did sovoluntarily, w/ full understanding of wate was doing and in consideration for te)uit claim is credible & reasonable!
Note6 EE@s promoted from rank(and(le tosupervisory lose teir <T pay and oterbenets under ?rt 3"(2
Hllustrations of <T 5omputations$!'egular orkdays'eg 7asic age ] "CR tereof
"!Legal or 'egular KolidaysKoliday age 'ate +"GGR. ] 9GR tereof
• EE will receive "GGR of is regulardaily wage wen bot regularolidays fall on te same day and edoes not work +Law provides tat esall get is regular daily wage of eac regular oliday.
• $GGR of ?raw ng Wagitingan, $GGR
1ood Driday! Hf e works on tat day,e gets :GGR<T pay integrated in 7asic %alary –
+composite/package pay/all(inclusive salary. –not illegal nor unusual for e*ecutives ormanagers 7ut for non(managerial EEs, tere must be6$!? clear written agreement"!?greed legal wage rate and <T pay
computed separately are e)ual or igertan te separate amounts legally due
DLEIH7LE <'W ?''?N1EBENT%( alternative work arrangements or scedules
oter tan te traditional or standard workrs, workdays or workweek! E's mayadopt tem after due consultation w/ EEs,taking into acct te adverse conse)uenceof te situation on te performance andnancial condition of te company!
( Hts e;ectivity and implementation sall betemporary!
( %ould be tresed out by te E' and EE( #<LE 'eg <fc must be notied prior to
( Hn addition to 5, te D?s include6$! 'eduction of workdays – were
normal workdays per week are
reduced but sould not last formore tan monts"! 'otation of workers – were te
EEs are rotated/alternatelyprovided work w/in te workweek
9! Dorced leave – EEs are re)uired togo on leave for several days orweeks, utili0ing teir leave creditsif tere are any
:! 7roken(time scedule – te workscedule is not continuous but tenumber of rs w/in te day orweek is not reduced
C! Dle*i(oliday scedule – Ees agreeto avail temselves of te olidaysat some oter days, provided tattere is no diminution of e*istingbenets as a result of sucarrangement
Art ) UNDERT=@E NOT O<<SET B OERT=@E( eter on te same day or any oter day
is proibited by law( >ermission given to te EE to go on leave o
some oter day of te week sall note*empt E' from paying te addtlcompensation
'eason6 EE@s ourly rate is not e)uivalent to<T rate>roper metod6 #educt te UT from teaccrued leave, if any
Art 9) E@ER6ENC OT OR 1'6 EEs cannot be compelled to render <T work
against teir will E*ceptions6
$!Hn times of war or any national or localemergency declared by 5ongress/5ief E*ec8
"!To prevent loss or damage to life or propertydue to emergencies and force majeure8
9!en tere is urgent work needed onmacines & e)uipment8
:!en work is necessary to preserveperisable goods8
C!To prevent serious obstruction or prejudiceto te business or operations of te E'8and
!en it is necessary to avail of favorableweater or environmental conditionswere performance or )uality f work isdependent tereon!
Art 9) CO@"UTAT=ON O< ADDTLCO@"ENSAT=ON
cas wage- – e*cludes noncas value of facilities( if only cas wage is te basis of <T rate, it
is unfair to te worker because as denedin ?rt 24, wage- includes te value of facilities, ence te value of facilitiessould not be e*cluded wen computing<T pay
( <T rate sould be based on te regularwage- +include te value of facilities.
C) ; EEL REST "ER=ODSArt 97) R=6>T TO EEL REST DA #uration6 at least ": consecutive rs after every
consecutive normal work days( all establisments & enterprises may operate or
open for business on %undays & olidaysprovided tat te EEs are given te weekly restday & te benets provided under te law
o #etermines6 Te E' determines andscedules te weekly rest period subj to te ;6$!57?8"!'ules & regulations issued by te %ec of
Labor8 and9!EE@s preference based on religious grounds!+en suc preference will prejudice tebusiness of te E', and no oter remedialmeasures are available, te weekly rest pdmay be sceduled to meed te EE@s coicefor at least " days a mont
Art 9;) >EN T>E ER @A REIU=RE OR ON A REST DA
1'6 Te E' may not re)uire te EEs to work on arest day
6 E*ceptions$!Hn cases of urgent work to be performed on
te macinery, e)uipment or installation8"!To prevent loss or damage to perisable
goods89!Hn case of actual/impending emergencies
caused by force majeure to prevent loss of life and property, or imminent danger topublic safety8
:!ere te nature of work re)uirescontinuous operations and te stoppage of work may result in irreparable injury/lossto te E'8
C!Hn te event of abnormal pressure of workdue to special circumstances, were teE' cannot ordinarily be e*pected to resortto oter measures8 and
!Under te circumstances analogous to teforegoing as determined by te %ec of Labor!
Note6 Te failure to work during an EE@s rest daydoes not justify disciplinary sanction of outrigt dismissal, more so wen justiablegrounds e*ist for te said failure!
Note6 en an EE volunteers to work on is restday under oter circumstances, e may beallowed to do so, provided e e*presses sucdesire in writing and e is paid te addtl
compensation for working on is rest day
Art 9() CO@"ENSAT=ON <OR REST DA-SUNDA OR >OL=DA OR
>remium pay or #i;erential compensation – addtlcompensation for work rendered by te EE ondays wen normally e sould not be workingsuc as special olidays and weekly rest days
1'6 for te company w/ a (day workingscedule, te divisor 9$: already means tatte legal olidays are included in te montly
pay of te EE! Te divisor is arrived at bysubtracting all %undays from te total numberof calendar days in a yr
1'6 for a company w/ a C(day working scedule,te divisor "$ means tat te oliday pay isalready included in te montly salary of te EE
Koliday pay of Teacing >ersonnel >aid perLecture Kr( not entitled to payment of oliday pay since
tey are paid by te rs worked8 and noclass days- means no work for tem
( entitled to teir regular ourly rate on days
declared as special olidays or wenclasses are called o; or sortened on acctof typoons, Aoods rallies, and te like
#ouble Koliday >ay +?raw ng Wagitingan & 1oodDriday on te same day.$!"GGR of te basic wage
a! entitled even if said oliday isunworked
b! to give EE only $GGR would reducete number of olidays under telaw
"!:GGR if e worked on " regular olidaysfalling on te same day
9!C"GR if e worked on " regular olidaysfalling on te same day and at te sametime falling on a sceduled rest day
%ingle Koliday 'ule6 provided tat te EE$!worked8"!was on leave w/ pay8 or9!was on autori0ed absence on te day prior
to te regular oliday!
%uccessive 'egular Kolidays6 to be entitled to "successive olidays, te EE must6$!be present on te day immediately
preceding te rst oliday8 or"!be on leave w/ pay!
• <terwise, e must work on te rstoliday to be entitled to oliday pay onte second regular oliday
E;ects of 7usiness 5losure on Koliday >ayHf regular oliday occurs during6
$!Temporary or periodic sutdown andtemporary cessation of work of anestablisment te regular olidaysfalling w/in te period sall becompensated!
"!5essation of operation of an enterprise dueto business reverses as autori0ed by te%ec of Labor te regular oliday may notbe paid by E'
C 9H) R=6>T TO SER=CE =NCENT=E LEAE4S=L5
5oncept6 C days leave w/ pay for every EE woas rendered at least $ yr of service
$ yr of service – service w/in $" monts, wetercontinuous or broken, reckoned from te datete EE started working including autori0ed
absences and paid regular olidays unless tenumber of working days in te establismentas a matter of practice/policy is less tan $"monts
%HL is N/? to te ;6$!EEs of te 1ovt"!#omestic elpers and persons in te
personal service of anoter89!Banagerial EEs:!Dield personnel wose performance is
unsupervised or tose wo are paid a*ed amt for performing work irrespective
of te time consumed in te performancetereof C!Tose already enjoying te said benets!Tose already enjoying vacation leave w/
pay for at least C days84!Tose employed in establisments regularly
employing less tan $G EEsS EEs engaged on task/contract basis or paidpurely commission basis are not automaticallye*empted from te %EL unless tey fall underte classication of eld personnel!
5onversion to Bonetary E)uivalent%HL is 5<BBUT?7LE or convertible to cas if not
used or e*austed at te end of te yr7asis of conversion6 te salary rate at te date of
commutation
?L%< Entitled to %HL$!EE illegally dismissed"!>art(time workers9!>iece(rate workers6
a! orking inside te premises of E'& tus are under direct supervisionof te E' entitled
b! orking outside te premises of te E' wose ours of work cannotbe ascertained w/ reasonablecertainty and tus are not underte direct supervision of teE'not entitiled
EEs w/ salaries above Bin age6 te di;erencebet te min wage and te actual salaryreceived by te EEs cannot be deemed as teir$9t mont pay and %HL pay
Pacation & %ick Leave( not statutorily re)uired but is a matter of
management discretion or 57?
1'6 7enets are non(cumulative and non(commutative8 must be enjoyed by te EE w/in$yr oterwise forfeited6 wen te labor law contract or teestablised practice of te E' providesoterwise
Bandatory ?rt 2C Poluntary grant+E'@s policy or 57?.
Hntended to
alleviate teeconomic conditionof te workers for itacts as replacementfor regular incometat would not beearned during sucinstance
Hntended to a;ord a
laborer a cance toget a muc neededrest to replenis isenergy and renewis e=ciency
5annot be waived Bust be demandedin its opportunetime8 silence iswaiver
5ommutable Not commutable
>arental +%olo(parent. Leave( not more tan 4 working days every yr( rendered to an EE wo as rendered service
at least $yr( no E' sall discriminate against any solo
parent EE w/ respect to terms & conditionsof ENT on acct of is/er status
( a cange in te status/circ of te parentclaiming benets under tis ?ct suc tate/se is no longer alone w/ responsibilityof parentood sall terminate is/ereligibility for tese benets
( not convertible to cas unless oterwiseagreed
7attered woman leave( female EE wo is a victim of violence is
entitled to paid leave of $G days inaddition to oter paid leaves!
( E*tendible wen necessity arises( EE as to submit certication from te
punong brgy, kagawad, prosecutor or clerkof court tan an action under '? 2"" asbeen led and is pending
Baternity & >aternity Leave
Art 98) SER=CE C>AR6ES5oncept6 ?ll service carges collected by otels,
restaurants, and similar establisments sallbe distributed as follows6$!3CR for all covered EEs to be e)ually
distributed among tem"!$CR for disposition by mgt to answer for
losses and breakages and distribution toEEs receiving more tan >"k amont atte discretion of te mgt in te latter case
5overage6 only to otels, restaurants, and similar( all EEs are covered, regardless of teir
position, designation, ENT status,irrespective of te metod by w/c teirwages are paid, e*cept managerial EEs
#istribution – distributed to paid EEs at least onceevery " weeks or "* a mont at interval of atleast $ days
'ule in case of abolition
( in case te service carge is abolised, tesare of te covered EEs sall beconsidered integrated in teir wages
( te basis of te amt to be integrated sallbe te average sare of eac EE for tepast $" monts immediately precedingte abolition
>ooled Tips( were an establisment does not collect service
carges but as a practice/policy of poolingtips given voluntarily by its customers, tepooled tips sould be monitored, accounted forand distributed in te same manner as teservice carges
Title ; A6ESC 7Art 9$) Denitions>erson – an individual, partnersip, assoc, corp,
business trust, legal rep, or any organi0edgroup of persons
Employer – any person acting directly/indirectly inte interest of an E' in relation to an EE &sall include te 1ovt & all its brances, subd,& instrumentalities, all govt(owned/(controlledcorps & institutions, as well as non(protprivate institutions/orgs!
Employee ( any indiv employed by an E'?griculture – includes farming in all its brances,
and among oter tings, includes tecultivation & tillage of soil, dairying, teproduction, cultivation, growing & arvestingof any agricultural & orticultural commodities,te raising of livestock or poultry, and anypractices performed by a famer on a farm asan incident to or in conjunction wit sucfarming operations, but does not include temanufacturing or processing of sugar,coconuts, abaca, tobacco, pineapples or oterfarm products!
Employ – includes to su;er or permit to work
age – paid to any EE8 sall mean terenumeration or earnings, oweverdesignated, capable of being e*pressed interms of money, weter *ed or ascertainedon a time, task, piece, or commission basis, oroter metod of calculating te same, w/c ispayable by and E' to an EE under awritten/unwritten contract of ENT for workdone or to be done, or for services renderedand includes te fair and reasonable value, asdetermined by te %ec of Labor, of board,lodging, or oter facilities customarilyfurnised by te E' ro te EE!
• Hncludes commissions – terecompense compensation/reward of anagent, salesman, e*ecutor, trustee,receiver, factor, broker or bailee, wente same is calculated as a percentageon te amt of is transactions or on teprot of te principal
onco v 'L)6 ^uelig was made topay te terminated EE +due to
retrencment., separation pay basednot only on te basic salary, but also onte commissions, transpo & emergency
living allowances!Even if commissions were in te form of incentives or encouragement, still tesecommissions are direct renumerationsfor services rendered w/c contributed tote increase of income of te E'! Tenature of work of a salesman & tereason for suc type of renumerationfor services rendered demonstrate tatcommissions are part of teir wage orsalary! +%ome salesmen do not receiveany basic salary but depend oncommissions & allowances or
commissions alone, altoug an EE(E'relationsip e*ists.!
• Hncludes *acilities or commodities – fair& reasonable value of board, lodging, oroter facilities customarily furnised byte E' to te EE!
?n E' may provide, for instance, food &ousing to is EEs but e may deductteir values from te EE%@ wages to bedetermined by te %ec of Labor!
Snac/s4GR ( deducted from wages +must beautori0ed in writing.
9GR ( subsidi0ed by te E'
Loging #acilit' – te cost of operation & maintenance, includingade)uate depreciation plus amt of capital invested by te E', providedtat if te total is more tan te *air rental value + or te fair price of tecommodities or facilities o;ered forsale.
Dair rental value (sall be tereasonable cost of te operation &maintenance!
'ate of depreciation & depreciated amt– tose arrived at under goodaccounting practices
1ood accounting practices – sall N<Tinclude accounting practices w/c avebeen rejected by te 7H' for HTpurposes
#epreciation – sall includeobsolescence
Hn order tat te cost of facilitiesfurnised by te E' may be cargedagainst an EE, is acceptance of sucfacilities must be voluntary
• E*cludes allowances (
Dair & reasonable value – sall N<T include anyprot to te E' or to any person a=liated w/te E'
A6ES SALAR 5ompensation formanual labor,skilled/unskilled,paid at stated times,and measured byte day, week,mont, or season
#enotes a igerdegree of ENT, or asuperior grade of services, andimplies a position oro=ce
Hndicatesconsiderable pay fora lower and lessresponsiblecaracter of ENT
%uggestive of alarger and morepermanent or *edcompensation formore important
serviceKas a less e*tensivemeaning tansalary8 beingordinarily restrictedto sums paid as ireor reward todomestic or menialservants and tosums paid toartisans, mecanics,laborers, and oterEEs of like class
5ompensation of clerks, o=cers of pub corps, and pubo=ces
Hn many situations, owever, and as te%5 states, tey are in essencesynonymous
<AC=L=T=ES SU""LE@ENTSHnclude articles orservices for tebenet of te EE oris family but sallN<T include tools of te trade or articlesor service primarilyfor te benet of
te E' or necessaryto te conduct of te E'@s businessage(deductible Not wage(
deductible7enet/privilegepart of te laborer@sbasic wages,
7enet/privilegegiven to te EE w/cconstitutes an e*trarenumeration above& over is basic orordinary earning orwage
Te distinction bet a facility & a
supplement is in te purpose, +not tekind. of te item!
tate +arine )orp & oyal Line, nc% v )e-ueamen.s Assoc, inc/ Te vessel crew wereprovided w/ free meals by te sip owners+petitioner., not part of teir wages but as anecessary matter in te maintenance of teealt & e=ciency of te crew during tevoyage! Tey sould not be deducted from
teir wages! Te deductions sould bereturned to tem! Ato$0ig 2edge Assoc v Ato$0ig 2edge/
%upplements constitute e*tra renumeration orspecial privileges or wages, wile facilities onte oter and, are items of e*pensenecessary for te laborer@s & is family@se*istence & substinence, so tat by e*pressprovision of law, tey form part of te wageand wen furnised by te E' are deductibleterefrom, since if tey are not so furnised,te laborer would spend and pay for tem justte same!
Re.uire!ents #or Deucting alue o# <acilities
$! >roof must be sown tat suc facilitiesare customarily furnised by te trade +e*!5ompany policy or guideline sowing tatte meal & lodging are part of te salary.8
"! Te provision of deductible facilities mustbe voluntarily accepted in writing by teEE8
9! Dacilities must be carged at fair &reasonable value!
+a-eza v 'L)6 Te E' failed to meet any of te re)uirements! Bore signicantly, te food& lodging or te electricity & water consumedby te EE were not facilities, but supplements!Kotel workers are re)uired to work di;erentsifts and are e*pected to be available atvarious odd ours, teir ready availability is anecessary matter in te operations of respondent@s otel!
1ratuity ( 1iven freely or w/o recompense8 a gift8someting voluntarily given in return for afavor or services8 a bounty8 a tip!( gratuity pay is not intended to pay a
worker for actual services rendered! Ht is amoney benet given to te workers wosepurpose is to reward EEs wo averendered satisfactory & e=cient service tote company!-
( Not mandatory & not part of laborstandard law
? A fair day’s wage for fair day’s labor.” – if tere is no work performed by te EE, terecan be no wage or pay unless te laborerwas able, willing and ready to work but wasprevented by te mgt or was illegally lockedout, suspended or dismissed!
Equal pay for equal work.” – EEs working in
te >K, if tey are performing similar functions& responsibilities under similar workingconditions, sould be paid under te principleof e)ual pay for e)ual work!
nternational chool Alliance o* Educators v 3uisum-ing/ H% ires as members of tefaculty, $.foreign(ires and ". local(ires! Tescool grants foreign(ires salary of "CR moretan tat of local(ires due to a. te
dislocation factor, and b. limited tenure! %56 Hf an E' accords EEs te same position & rank,te presumption is tat tese EEs perform
e)ual work! Tere is no sowing tat foreign(ires perform "CR more e=ciently ore;ectively tan te local(ires! 7ot groupsave similar functions & responsibilities w/ctey perform under similar working conditions!
Te dislocation factor- and limited tenure-cannot serve as valid bases for te distinctionin salary rates, and are ade)uatelycompensated by certain benets accordedtem w/c are not enjoyed by local(ires+ousing, transpo, sipping, ta*es, ome leaveallowance.!
?gricultural ork Hndustrial orkork on te soil andits arvests
en te arvestsare processed intonised product ortransformed toanoter product
Lower rate+?gricultural EEs.
Kiger rate+industrial EEs.
Agricultural Acti2ities
• >reparation of te soil, planting of ramie stalks and transporting tem tote stripping seds, stripping te bers
w/ te use of decorticating macinesrun by electricity, drying te wet bers,passing tem troug te bruser tocleanse tem of impurities and balingte ers for te market
• Tillage of te soil, raising of cropsincluding discovery of plant pests andteir eradication by means of insecticides
• Dispond business
• farmands employed to cultivate tevegetable garden of a non(agriculturalcorp are not agricultural workers
Art 9) Tis title sall NOT a%%l' to:7) <ar! tenanc' or leaseolK;) Do!estic ser2ice() "ersons wor/ing in teir res%ecti2e
o!es in neele wor/ orF) =n an' cottage inustr' ul'
registere in accorance wG law)
C ; @=N=@U@ A6E RATES
Art 99) Te !ini!u! wage rates #oragricultural an non1agricultural EEs anwor/ers in eac an e2er' region o# tecountr' sall be tose %rescribe b' teRegional Tri%artite ages an"roucti2it' Boars
Statutor' @ini!u! age – te lowest wagerate *ed by law tat an E' can pay isworkers! 5ompensation w/c is less tan suc
minimum rate is considered an underpaymenttat violates te law!( determined for eac region by te regional
wage boards( provided w/ margin to take care of
contingencies, suc as increase of prices of commodities and increase in wants and toprovide means for a desirable improvementin EE@s mode of living +? person@s needsincrease as is means increase!.
E,ects6$! benets all wage earners by setting a
Aoor below w/c teir pay cannot fall
"! raises te standard of competitionamong E's, since it would protect tefair(minded E' from te competition of te E' wo pays is workers a wagebelow subsistence8
9! is a prere) to te adoption of te %%%,w/c re)uires contributions from EEstemselves
Abilit' to %a' i!!aterial( E' cannot e*empt imself from liability to
pay minimum wages because of poornancial condition of te company
( Lack of funds is not a valid defensebecause te payment of minimum wage isa mandatory statutory obligation
EEs not estopped to sue for di;erence in amountof wages
( te acceptance by an EE of te wages paid imw/o objection does not give rise to estoppelprecluding im from suing for te di;erencebet te amt received and te amt e souldave received pursuant to a valid minimumwage law
E0e!%tions to te co2erage o# te Rule on!ini!u! wages$! Kouseold or domestic elpers, including
family drivers and persons in te personalservice of anoter8
"! Komeworkers engaged in needle(work89! orkers employed in any establisment
duly registered w/ te National 5ottageHndustries and #evt ?utority inaccordance w/ '? 9:4G provided tat sucworkers perform te work in teirrespective omes8
:! orkers in any duly registered cooperativewen so recommended by te 7ureau of 5ooperative #evt and upon approval byte %ec of #<LE, provided however , tatsuc recommendation sall be given only
for te purpose of making te cooperativeviable and upon nding and certication of said 7ureau supported by ade)uate proof,tat te cooperative cannot resort to oterremedial measures w/o serious loss orprejudice to its operation e*cept trougits e*emption from te re)uirements of te 'ules! Te e*emption sall be subj tosuc terms & conditions and for suc
period of time as te %ec of Labor mayprescribe!
C! 7arangay Bicro 7usiness Enterprises
+7B7E. +under '? 2$43/7B7E Law.,provided tat all EEs covered under tis?ct sall be entitled to te same benetsgiven to any regular EE suc as socialsecurity and ealt care benets! 7B7Esare also e*empt from income ta*!
B@BE – any business entity or enterpriseengaged in te production, processingor manufacturing of products orcommodities, including agro(processing, trading and services, wosetotal assets including tose arising from
loans but e*clusive of te land on w/cte particular business entity@s o=ce,plant and e)uipment are situated, sallnot be more tan >9B! +comprises noless tan 2GR of > E's.
a! regularly employing not more tan$G workers8 and
b! upon application w/ and asdetermined by te 'egional 7oardin accordance w/ te ''s of te5ommission!
Hf not granted, EEs sall receive teapprop compensation due tem ] $Rinterest per mont retroactive to tee;ectivity of te ?ct!7urden of proving suc e*emptionrests on te E'!
4! <ter e*emptions by provisions of age<rders by te 'egional Tripartite age &>roductivity 7oard
Art 7) "RO>=B=T=ON A6A=NST
EL=@=NAT=ON OR D=@=NUT=ON O<BENE<=TS
%o tat te rule against diminution of supplements/benets may apply, it must besown tat6$! Te grant of te benet is founded on a
policy or as ripened into a practice over along period8
"! Te practice is consistent and deliberate89! Te practice is not due to error in te
construction or application of a doubtful ordi=cult )uestion of law8 and
:! Te diminution or discontinuance is doneunilaterally by te E'!
<ooG@eal Allowance
)e-u Auto-us )o v 4nited )e-u Auto-usEEs Assoc6 te company used to pay itsdrivers and conductors, aside from teirregular salary, a certain percentage of teir daily wage, as allowance for food!
#iscontinued by E' upon e;ectivity of Binimum age Law! 5H'6 company practice
Nonconributor' Retire!ent "lan'estle P5 nc% v 'L)6 Te fact tat te
retirement plan is noncontributory, doesnot make it a nonissue in te 57?negotiations! Te EEs ave a vested rigtover te e*isting benets voluntarilygranted to tem by teir E'! Te lattermay not unilaterally witdraw, eliminateor diminis suc benets!
@ontl' E!ergenc' Allowance
% 6iangco & 7% 6iangco v 5on% Leogardo6E's, sing operator and sbroker,discontinued paying te batillos +wo
work by unloading te s from tevessels dependent on arrival of tevessels, ence tey work only a few daysa mont averaging : rs a day. a *edmontly emergency allowance +wictey ad been paid as a matter of practice/verbal agreement. illegal!
<ull 7(t !ont %a'
Arco +etal Products v amahan ng+anggagawa6 E' cannot srink awayfrom its responsibility by merely claimingtat its acts of giving full $9t mont payto EEs wo ave not worked for te full
year is a mistake! Ht as become practice!
E0ce%tions to te Non1Di!inution Rule$! 5orrection of error8"! Negotiated benets89! age order compliance8:! 7enets on reimbursement basis8C! 'eclassication of position8! 5ontingent benets or conditional bonus8
and4! >roductivity incentives!
Not establise %racticeK @ista/e in
A%% o# Law8lo-e +ac$ay v 'L)6 E' ad been
computing te 5<L? by multiplying>9/day by 9G days! Upon e;ectivity of age <rder F, and in virtue tereof, itused "" days or actual days of work!Union disagreed and claimed 9G daysbasis as company practice! %56 Notvoluntary company practice! To beconsidered as suc, it sould ave beenpracticed over a long pd of time, and
must be sown to ave been consistent& deliberate and not merely anerroneous application of te law!
amahang +anggagawa sa 6op orm v 'L)/ 1ranted tat te E' ad grantedan across(te(board wage increasepursuant to '? 4"4, tat single instancemay not be considered an establisedcompany practice!
• Negotiate benets – benets initiatedtroug negotiation bet E' & EEs, suc as
57?s, are not w/in te proibition of ?rt $GGbecause, as products of bilateral contract,tey can only be eliminated or diminised
bilaterally! at te law forbids iselimination/modication done unilaterallyby te E'!
• age Orer Co!%liance – te giving of across(te(board salary increases so as torectify a salary distortion caused bycompliance w/ a wage order cannot be saidto ave ripened into a company practice!
Pag0asa teel 2or$s v )A6 To ripen into acompany practice tat is demandable as amatter of rigt, te giving of te increasesould not only be by reason of a strict legal
+as age <rder. or contractual oblig +57?.,but by reason of an act of liberality on tepart of te E'!
Benet on Rei!burse!ent Basis
o >er diem allowance – a dailyallowance given for eac day wenan EE is away from is ome base8intended to cover teir cost of lodging & subsistence wen onduty outside of teir permanentstationif te EE did not leave ispermanent station and spentnoting for meals & lodging outside
tereof, ten e is not entitled toper diem as tere is noting to bereimbursed
o Bontly ration of gas given tocertain managerial EEs is not partof teir basic salary! itstemporary revocation does notconstitute a diminution of te EE@sfringe benets!
o Te elimination of an e*istingbenet in e*cange for an e)ual orbetter one does not violate ?rt $GG!
Reclassication o# "ositionK
"ro!otiono from rank(and(le to supervisory (
te position olders lose <T payand oter benets but ?rt $GG isnot violated!
7ut, promotion & positionreclassication must be done in 1D!
'ational ugar e:neries )orp v 'L& ' 4nion6 E' implemented a obEvaluation program a;ecting all EEs!'espondents were reclassied from rank(and(le to supervisory/managerial positions!
7ecause of tat, tey lost teir <T, rest day &oliday pay but it was also sown tat teyreceived upward adjustments in basic pay &allowances! %56 Tis reclassication is inessence a promotion w/c is one of te
jurisprudentially recogni0ed e*clusiveprerogatives of mgt, provided in is done in 1D!Union failed to prove 7D on te part of te E'!>romotion – te advancement from oneposition to anoter wit an increase in duties &
responsibilities as autori0ed by law andusually accompanied by an increase in salary
ContingentGConitional BenetsKBonus
( ?rt $GG is n/a to a benet wose grantdepends on te e*istence of certainconditions, so tat te benet is nodemandable if tose preconditions areabsent!
7onus – an amt granted & paid to an EE for isindustry & loyalty w/c contributed to tesuccess of te E'@s business and madepossible te reali0ation of prots! Ht is an act of generosity!
( it is not a demandable and enforceable
oblig! 7UT_ Ht is so wen it is made a part of te wage/salary! Hn suc a case, te latterwould be a *ed amt and te former would bea contingent one dependent upon tereali0ation of prot
<N bonus forms part of wages6 depends onte circs and conditions for its payment!
a! Hf it is an addt@l compensation w/c teE' promised and agreed to give w/oany conditions imposed for its payment,suc as success of business or greaterproduction or output, ten it is part o*
the wage%b! Hf it is paid only if prots are reali0ed ona certain amt of productivity acieved,it cannot be considered part of tewages!
c! ere it is not payable to all but only tolaborers and only wen te laborerbecomes more e=cient or moreproductive, it is only an inducement fore=ciency, a pri0e terefor, not a part of te wage!
Luzon tevedoring )orp case/ ?n E'cannot be forced to distribute bonusesw/c it can no longer a;ord to pay! Toold oterwise would be to penali0e teE' for is past generosity!
American 2ire & )a-le aily ated EEs4nion v A2) )o nc & the )A/ Dor a bonus tobe enforceable, it must ave been promised byte E' and e*pressly agreed by te parties, orit must ave ad a *ed amt and ad been along and regular practice on te part of te E'!
E.uit' or Long "ractice as Basis o#
Bonus( Ph Education )o% nc v )/ even if a
bonus is not demandable for not being partof te salary of te EE, te bonus mayneverteless be granted on e)uitableconsideration!
( +arcos v 'L)/if one enters into acontract of ENT under an agreemt tat esall be paid a certain salary by te weekor some oter stated period and, inaddition, a bonus, in case e serves for aspecied lengt of time, tere is not reasonfor refusing to enforce te promise to pay
te bonus, if te EE as served during testipulated time, on te ground tat it was apromise of mere gratuity!
Ser2ices Renere as Basis o# Bonus( EEs wose ENT as been terminated maystill demand paymt of service undercompany policy and of te bonuses! Te 'is not defeated by a release & )uitclaim-
( L8 +arcos v 'L) & nsular Li*e6 Tefact tat an EE as signed a satisfactionreceipt for is claims does not necessarilyresult in te waiver tereof! Te law doesnot consider as valid any agreementwereby a worker agrees to receive lesscompensation tan wat e is entitled torecover! ? deed of release or )uitclaim
cannot bar an EE from demanding benetsto w/c e is legally entitled!
No "rot- No Bonus
( 6raders oyal an$ v 'L)/ Te matterof giving te EEs bonuses over & aboveteir lawful salaries & allowances is entirelydependent on te prots, if any, reali0ed byte bank from its operations during tepast year! %ince te scal condition avingdeclined, te bank may not be forced todistribute bonuses w/c it can no longera;ord to pay and, in e;ect, be penali0edfor its past generosity to its EEs!
•
>roductivity Hncentives ( bonus tat comesfrom productivity gain, or improved outputwitout increasing input
( '? 24$6 EE@s sare is in te nature of salary bonus proportionate to increases incurrent productivity over te average forte preceding 9 consecutive yrs
( Not gratuitous8 it is a benet claimable onlyon te basis of predened output level
( 5ontingent/conditional8 if tey are notgiven because te preconditions areabsent, ?rt $GG is not violated e*ceptperaps if tere is contractual commitment
to te contrary!
"D H7: 7(T> @ONT> "A ( adds $(mont pay to te usual $"(mont
earnings! 7UT, does not cange te EE@sbasic wage! Kence, <T pay, restday pay,%%% contributions & oter roll(up or add(onpayroll costs do not increase!
( 'e)uires at least $ mont service duringte calendar yr
( %5<>E6 all rank(and(le EEs, regardless orsalary rate! managerial & supervisoryEEs
(
EI5E>TH<N6 E's wo are already payingteir EEs a $9tB> or its e)uivalent- arenot covered by te decree! +te intent of te law was to grant addt@l income to EEsnot already rcving te samenot to all EEsbut only to te unfortunate ones wo arenot paid a $9tmont salary or watamounts to it, by watever name called.
its E)uivalent - – sall include Imas bonus, mid(year bonus, prot(saring payments and otercas bonuses amounting to not less tan $/$"
of te basic salary! en an E' pays less tan$/$" of te EE@s basic salary, te E' sall payte di;erence! ( ole P5 nc v Leogardo
sall not include cas & stock dividends,5<L?s, & all oter allowances regularlyenjoyed by te EEs, as well as nonmonetarybenets +food, free electricity, etc.ramanlis arms nc% v +inister o* La-or/%uc benets in te form of food or freeelectricity are not te proper substitute for te$9tB> re)uired by law! Neiter may year(endrewards for loyalty & service be considered inlieu of $9tB>
Hf te bonus was included in or considered asthe e<uivalent of te $9tB>, tere would be
no need for a specic provision of suc bonusin te 57?! 7ut if te 57? did provide for abonus in graduated amts depending on telengt of service, for e*ample, te intention isclear tat te bonus provided in te 57? wasmeant to be in addition to te legalre)uirement of $9tB>!
$9tB> – deemed incorporated in te 57?,employment contract! Te absence of ane*press provision obligating te E' to pay$9tB> to te EEs is immaterial
$:t B> – basically a bonus, and gratuitous8( mgt prerogative & cannot be forced upon
te E'8 not legally demandable
E0clusions in te Co!%utation o# 7(t @"$9tB> \ $/$" of te -asic salary of te EE w/in a
calendar yearV6 at does =-asic salary> includeZ?6 7asic salary sall include all renumerations or
earnings paid by an E' to an EE for servicesrendered
Not included +*ringe -ene:ts"
• 5<L?s granted pursuant to ># C"C/L<H$4:,
• prot(saring payments and all allowancesand
• monetary benets w/c are not consideredor integrated as part of te regular or basicsalary of te EE
• <T >ayDringe benets – all allowances & monetary
benets w/c are not considered/integratedas part of te basic salary
Te items e*cluded by te decree may beincluded troug esta-lished practice oragreement binding on te E'
V6 ?re commissions included in te computationZ?6 Ht depends!
$! Hf te commissions may properly beconsidered part of te basic salary, teysould be included in computing te$9 TKB>
Ph uplicators nc v 'L)/ te salescommission earned by te sales menconstitute part of teir compensation,
considering tat te E' pays tem asmall *ed/guaranteed wage8 tegreater part being composed of te
sales/incentive commissions earned onactual sales closed by tem
%ales commissions – are intimately relatedor directly proportional to te e*tent orenergy of an EE@s endeavors8 paid upon tespecic results acieved by a salesman(EE8it is a percentage of te sales closed by asalesman & operates as an integral part of suc salesman@s bsic pay!
"! Hf tey are N<T integral part of tebasic salary, ten tey sld bee*cluded!
oie06a$eda )ase6 te commissionspaid to medreps were e*cluded fromte term basic salary- because tesewere paid to tem as productivitybonuses-! Tey are generally tied to teproductivity or capacity for revenueproduction of a corp8 suc bonusesclosely resemble prot(saringpayments and ave no clear direct or
necessary relation to te amt of workactually done by eac indiv EE! Te commissions pd by 7oie to its
medreps could not ave been salescommissions! Bedreps are notsalesmen8 tey do not e;ect any sale of any article at all! Tey are EEs engagedin te promotion of parmaceuticalproducts or med devices manufacturedby teir E'! Tey promote sucproducts by visiting identiedpysicians & inform suc pysiciansorally/w/ te aid of brocures, of te
e*istence & cem composition of teparma product! Te addt@s paymentsgiven to tem were not in factcommissions but rater in te nature of prot(saring bonuses!
1uaranteed wage/commission – EEs woseincome is guaranteed by way of wages and/orcommissions are entitled to a $9tB> based onteir earnings tat include commissions!
Ph Agricultural )ommercial & ndustrial2or$ers 4nion v 'L)6 te bus drivers &conductors of respondent transic co! +allegedlypaid on purely commission basis. are entitledto $9tB> on bot teir *ed & guaranteedwage and commission in te case of a bus conductor paid oncommission only as supported by is pay slipsw/c indicated te varying amount of
commissions e received eac trip notincluded in $9 TKB>
V6 Hs Teacers@ <verload >ay HncludedZ?6 Jes! Ht is considered part of teir basic pay forte purposes of computing $9tB>
1'6 >ayments for overload work w/in 3 rs formpart of te basic wage, & terefore are to beincluded in te computation of $9tB>!
<verload – te load in e*cess of te normal loadof private scool teacers as prescribed by te#E5% or te policies, rules & standard of particular private scools!
Normal load( 3rs per working day<verload work ̀ <vertime work<vertime work <verload work
ork rendered ine*cess of tenormal working rsof 3 in a day
Bay be performedeiter w/in oroutside 3 rs in aday
"ro%ortionate 7(t@"( an EE wo as resigned or was dismissed
at any time before te time for payment of te $9tB> is entitled to tis monetarybenet in proportion to the length o* timehe wor$ed during the year ! unlessoterwise stipulated in te 57?
Distresse E!%lo'er – e*empted from paying$9tB> upon prior autori0ation from te %ec of #<LE
#i;erence of opinion in te computation of $9tB>is a nonstri$ea-le issue! a strike eld on tisground is illegal%
6o2t E!%lo'ees – not covered by $9tB> Sea#arers – not covered by $9tB>8 because
tey are contractual, not regular EEs! TeirENT is governed by teir 5ontract of Enlistment w/c was approved by te ><E?! Htdoes not provide for $9tB>!
Art 77) "A@ENT B RESULTS 4"iecewor/5Te Sec o# Labor sall regulate te%a'!ent o# wages b' results- incluing%a/'ao- %iecewor/ an oter noonti!ewor/- in orer to ensure te %a'!ent o# #air & reasonable wage rates- %re#erabl'troug ti!e & !otion stuies or inconsultation wG re%s o# wor/ers & ERMsorgs)
orkers paid by results – workers wose pay iscalculated not on te basis of time spent onte job but of te )uantity & )uality or te kindof work tey turn out! +nontime work.!( stress is placed on te unit of work
produced or te )uantity tereof ( a uniform amount is paid per unit
accomplised
Categories o# "iece1rate wor/ersA) As to %resence o# control
$! tose wose time & performance issupervised by te E'8• piece(rate workers, esp wen tey
work in company premises +soes,andicraft, garment."! tose wose time & performance is
unsupervised by te E'!• >akyaw & takay basis – commonly
practiced in te agricultural industry+planting, arvesting per ectare of land.
>akyaw >iece(rateBore aptly usedwen te job/workto be performed is inbulk/volumes w/c
are di=cult to)uantify
5ommon were teoutput may easilybe counted ormeasured
S>ayment by result is not determinative of EE(E''elsip! Ht is merely a metod of compensationand does not dene te essence of terelation!
Basis o# Out%ut RateK "rocess to set teStanar$! <n petition of any interested party, or
upon its initiative, te #<LE sall use allavailable reps of E's & workers@ orgs, to
determine weter te EEs in anyindustry/enterprise are beingcompensated in accordance w/ te minwage re)mts
"! Te basis for te establisment of ratesper pc, output or contract work sall bete performance of an ordinary worker of min skill/ability!
9! ?n ordinary worker of min skill/ability iste average worker of te lowestproducing group representing CGR of tetotal F of EEs engaged in similar ENT in aparticular establisment, e*cluding
learners, apprentices & andicappedworkers employed terein!:! ere te output rates establised by te
E' do not conform w/ te standardsprescribed erein, or w/ te ratesprescribed by te #<LE in an approporder, te EEs sall be entitled to te di; bet te amt to w/c tey are entitled toreceive under suc prescribedstandards/rates and tat actually paidtem by te E'!
B) As to Rate o# "a'!ent
$! Tose wo are paid piece rates w/c are prescri-ed in >iece 'ate <rders issued by#<LE
F of pieces * rate per pc( tese workers are not covered by te 'ule
on Kours of ork +no premium & <T pay.
"! Tose wo are paid output rates w/c areprescribed by te E' and are not yetapproved by te #<LE!
a!. Hf te resulting amt is tan testatutory min daily rate in rel to teF of rs worked, te worker will rcvsuc amt!
b!. 7UT, if te amt is less tan teapplicable legal rate, it is possibletat te rates per pc are not inaccordance w/ te standards! Hntat case, te E' is re)uired by lawto pay te di;erence!
Entitle!ent o# "iece1Rate or/ers to NSDan S=La! Unsupervised – no <T/%HLb! %upervised – entitled to <T/%HL( Te yearly commutation/cas conversion of te
%HL sould be based on teir average dailyearnings earned during te yr by te actualnumber of working days or te statutory minrate, wicever is iger!1'6 te amt earned during te year maye*clude 5<L?, <T pay, and premium pay,oliday pay, N%# and company fringe benets tere is agreement to te contrary
Hllustration of te computation Total wages earned for $ yr $" \ avemontly earning?BE 9GSSS \ #aily Earnings#E * C \ ve(day incentive paySSS sould be te actual days of work in amont
Entitle!ent to >olia' "a'( sall not be less tan is average daily
earnings for te last 4 actual working daysimmediately preceding te regular oliday!Provided however, tat in no case sall teoliday pay be less tan te applicablestatutory min wage rate
Entitle!ent to 7(t@"1'6 ># 3C$ e*empts from payment of $9tB> E's
of tose wo are paid a *ed amt forperforming specic work, irrespective of timeconsumed in te perf tereof,
e*cept were te workers are paid on piece0wor$ -asis +tose wo are paid a standard amtfor every pc/unit of work produced tat ismore/less regularly replicated, w/o regard tote time spent in producing te same. in w/ccase te E' sall grant te $9tB> to suc EEs!
Te piece(rate worker sould ave rendered atleast $ mont work/service during te calendar
yr!
Not Entitle to >"-ND- S=L- 7(t@"$! Dield personnel"! Unsupervised employees9! Engaged on task/contract basis:! >urely commission basisC! >aid a *ed amt for performing work
irrespective of te time consumedNot Entitle to OT "a'
$! >aid on piece(work"! >aid on takay9! >aid on pakyaw
:! >aid on task basis i* their output rates arein accordance w/ te standards under %ec3 'ule 4 7ook 9, or were suc rates avebeen *ed by te %ec of Labor
Benets "a'able to "iece1Rate or/ers$! %tatutory minimum wage +B."! Jearly service incentive leave of C days w/
4! >remium pay +conditional. +>>.3! $9tBont pay +$9t.2! oter benets granted by law, by
indiv/57? or company policy/practice+57?.
BC 6uielines Su!!ar' Te rate(per(pc to be paid to a worker
sould be submitted to #<LE for approval! #<LE decides weter te outpu(and(pay
proposal of te E' fairly & reasonablymeets te legal B, based on te outputof ave! workers doing same products
under comparable conditions! Hf #<LE approves te proposal it becomeste standard +)uota.! 7ecause te #<LE(approved standard is presumed fair &reasonable, a piece(rater wo does notreac te )uota will earn less tan telegal B and not w/ te pay formula! Hnsuc case te E' need not make up tedi; bet te legal B and te wageactually earned!
<n te oter and, if te outpu(and(paysceme as not been approved by #<LE,or does not conform w/ #<LE(issued
orders, ten te E' may be re)uired topay te sortfall bet te actual earningand te prescribed B!
Te piece(rate pay formula needs #<LE@sapproval so ast to protect te worker@srigt to be paid or to earn at least te B,and at te same time, to elp te E'obtain te corresponding work ouput!
C ( "A@ENT O< A6ESArt 7;) <OR@S O< "A@ENT
>roof of age payment – E' as burden of proof Te H's re)uire every E' to keep a payroll! ?mong
oter tings, it must sow te lengt of time tobe paid, te pay rate, te amt actually paid,and so on! ?N# te EE sould sign te payroll!
ER cannot %a' is wor/ers b' !eans o#:$! >romissory notes"! Poucers9! 5oupons:! TokensC! Tickets! 5its4! ?ny obj oter tan legal tender
: "a'!ent b' cec/ or !one' orer !a'be allowe i# te sa!e is:$! 5ustomary on te date of e;ectivity of te
L58"! Necessary because of special circs as
determined by te %ec of Labor89! %tipulated in te 578 or:! ere te ; conditions are met
a! Tere is a bank or oter facility forencasment w/in $km radius8
b! Te E', or any of is agents orreps, does not rcv any pecuniarybenet directly/indirectly from te
arrangement8c! Te EEs are given reasonable timeduring banking rs to witdrawteir wages from te bank w/c timesall be considered ascompensable ours worked if doneduring working rs8 and
d! Te payment by ceck is w/ tewritten consent of te EEsconcerned if tere is no 57?autori0ing te payment of wagesby bank cecks!
Art 7() T=@E O< "A@ENT
1'6$! ?t least once every " weeks8 or"! Twice a mont at intervals not e*ceeding
$ days!6
$! Hn case of force majeure or oter circsbeyond te E'@s control, payment must bemade immediately after suc occurrenceas ceased!
"! Hf engaged to perform a task w/c cannotbe completed in " weeks and in teabsence of 57? or arbitration award6
a! >ayment sall be made at intervalsnot e*ceeding $ days, inproportion to te amt of workcompleted8
b! Tat nal settlement is made uponcompletion of work!
Art 7F) "LACE O< "A@ENT1'6 ?t or near te place of undertaking6
$! en payment cannot be e;ected at ornear te place of work by reason of deterioration of peace & order conditions,or by reason of actual or impending
emergencies caused by re, Aood or otercalamity rendering paymt tereatimpossible8
"! en te E' provides for free transpo tote EEs back and fort8 and
9! Under any oter analogous circs!"roibition6 No E' sall pay is EEs in a bar,
nigt or day club, drinking establisment,massage clinic, dance all or oter similarplaces or in places were games are played w/
stakes of money or tins representing moneye*cept in te case of persons employed insuc places!
Re.uisites #or "a'!ent tru Ban/s 4ageRationaliation Act5$! Tere must be written permission of te
majority of te EEs concerned in anestablisment8
"! Te establisment must ave "C/moreEEs8 and
9! Te establisment must be located w/in $km radius to te bank
Re.uisites o# "a'!ent tru AT@$! Te ?TB sys of paymt is w/ te written
consent of te EE concerned8"! Te EEs are given reasonable time towitdraw teir wages from te bankfacility w/c, if done during working rs,sall be considered as compensable rsworked8
9! Te sys sall allow te EE to rcv teirwage w/in te period & te amt prescribedunder te L58
:! Tere is a bank/?TB facility w/in $kmradius from te workplace8
C! Upon te re)uest of te concerned EE, teE' sall issue a record evidencing paymtof wages, benets & deductions for aparticular pd8
! Te ?TB sys of paymt sall neiter resultin diminution of benets & privileges of te EE nor sall te latter incur addt@le*penses in te process8 and
4! Te E' sall assume full responsibility incase te wage protection provisions of law& regulations are not complied w/ underte arrangemt
Art 7H) D=RECT "A@ENT O< A6ES1'6 ages sall be paid directly to te workers to
wom tey are due!6 E*ceptions
7) "a'!ent troug anoter %ersona! Hn case of force majeure rendering
suc payment impossible providedsaid person is under writtenautority given by te worker forte purpose8
b! en autori0ed under e*istinglaw, including payments forinsurance premiums of te EE andunion dues were te ' to ceck(o; as been recogni0ed by te E'in accordance w/ a 57? or
autori0ed in writing by te indivEEs concerned!
;) "a'!ent troug te eirs o# tewor/er
( in case te worker as died, E' may paywages of te deceased worker to te eirsof te latter w/o te necessity of intestateproceedings!
deceased and te fact tat tey areis eirs, to te e*clusion of alloters +?=davit of Ne*t of Win.8
". Hn case of a minor eir, a=davitsall be e*ecuted on is bealf byis natural guardian or ne*t of kin8
9. ?=davit sall be presented to teE' wo sall make paymt trougte %ec of Labor or is rep8
:. Te rep sall act as referee individing te amt paid among teeirs8 and
C. >ayment of wages under tis ?rt
sall absolve te E' of any furterliability w/ respect to te amt paid!() "a'!ent troug a #a!il' !e!ber o# te wor/ers #a!il'( were te E' is autori0ed in writing by teEE to pay is wages to a member of is family
Su!!ar' o# Legal "roibitions on ages$. >ayment of wages in non(cas form8". >ayment of wages in nigt and day clubs,
bars & oter similar places89. Non(diminution of wages8 and:. Non(interference by te E's in te EE@s
en <nce every " weeks, or Twice a mont at intervals of atleast $ days
ere ?t or near te place of undertaking
Kow #irectly to te EE
Art 78) CONTRACTOR OR SUBCONTRACTOR
T'%es o# Contractors uner te Law7) Job Contracting or Subcontracting – an
arrangement wereby a principal agrees to putout or farm out wit a contractor orsubcontractor te performance or completionof a specic job, work or service w/in a deniteor predetermined period, regardless orweter suc job, work, or service is t be
performed or completed w/in or outside tepremises of te principal
E0istence o# Trilateral Relationsi%(under tis legitimate contracting te ;
CONTRACTS e*ist6a! 5ontract for specic job, work or service
bet te principal & tecontractor/subcontractor8 and
b! 5ontract of ENT bet tecontractor/subcontractor and its workers!
Kence, te "ART=ES involved are6$! >rincipal8"! 5ontractor/subcontractor8 and
pertinent commercial laws"! 5ontractor & is EEs Labor 5ode &
special labor laws9! >rincipal & contractor@s EEs no EE(E'
'elationsip7UT E'(EE 'elsip will e*ist bet te
>rincipal & te orkers were tecontracting arrangement is notlegitimate, as in labor(only contracting
Ele!ents o# =ne%enent Contractor JobContracting$! Te sub/contractor carries on a distinct
and independent business and undertakesto perform te job on is own account andunder is own responsibility, according toits own manner and metod and free fromte control & direction of te principal inall matters connected w/ te performanceof te work e*cept to te results tereof8
"! Te sub/contractor as su-stantial capitalor investment in tool, e)uipment andmacineries, work premises and otermaterials necessary in te conduct of isbusiness8
9! Te agreement bet te principal andsub/contractor assures te contractual EEsentitlement to all labor & ealtstandards, free e*ercise of te ' to self(org, security of tenure and social & welfarebenets8
:! Bust be properly registered as suc inaccordance w/ #< F$3(G"! +Te absenceof registration only gives rise to tepresumption tat te contractor isengaged in labor(only contracting apresumption tat can be refuted!.
;) Labor1onl' Contracting – an arrangementwere te sub/contractor merely recruits,supplies or places workers to perform a job,work or service for a principal, and AN of te; ELE@ENTS is present6a! Lack of substantial capital/investment
AND performance of activities directlyrelated to te principal@s business+conrming element.8 or
b! Te contractor does not e*ercise te rigtof control over te performance of tecontractual EE +conrming element.8
c! Te arrangement is merely to recruit,supply or place workers to perform a job,work, or service for a principal +EssentialElement.
• L<5 \ Essential Element ] eiter or botconrming element/s
Labor(only contracting is wrong & proibited bco0it is an attempt to evade te obligs of an EEr6
a. To respect EE@s ' to unioni0e8b. ' to ENT standards8c. ' to security of tenure
%ubstantial capital – capital stocks andsubscribed capitali0ation in te case of corps,tools, e)uipment, implements, macineriesand work premises, actually & directly used byte sub/contractor in te performance orcompletion of te job, work or servicecontracted out!( te law does not re)uire bot substantial
capital and investment in te form of tools,e)uipment, macineries, etc!
'igt to control – refers to te rigt reserved tote person for wom te service of tecontractual workers are performed, todetermine not only te end to be acieved, butalso te manner & means to be used inreacing tat end
nsular li*e v 'L)/ e*clusive servicing-esp springing from a regulation issued by teHnsurance 5ommission, and not from anintention by te alleged E', does notnecessarily mean being under te control orENT of te entity being served! Te relsipmay still be classied as independentcontractorsip because te element of controlis absent!
( EEs may resign from teir jobs tobecome contractors to teir former E', but telatter sould cease controlling te means &metod of doing te work allegedlycontracted, oterwise, te result is L<5!
Su!!ar' o# "roibite Labor Contracting$! Labor(only contracting8"! 5ontracting tat terminates te ENT of
regular EEs, or reduces teir work rs, orreduces/splits a bargaining unit, if succontracting out is not done in 1D & not
justied by business e*igencies89! 5ontracting w/ a 5abo – person/s or labor
group w/c, in te guise of a labor org,supplies workers to an E' w/ or w/o anymonetary or oter consideration weterin te capacity of an agent of te E' or asan ostensible independent contractor8
:! 5ontracting w/ in(ouse agency8C! 5ontracting because of a strike/lockout8! 5ontracting tat constitutes UL> under ?rt
":3!
<7 5<NT'?5THN1 L?7<'(<NLJ5<NT'?5THN1
Te E'/principal ismerely an indirectE', by operation of law, of iscontractor@s EEs
Te E'/principal istreated as direct E'of te contractor@sEEs in all instances+contractor isdeemed agen of te
E'. Te law creates anE'(EE relsp for a
limited purpose, i!e!to ensure tat teEEs are paid teirwages
Te statute createsan E'(EE relsp for
a compreensivepurpose, i!e! toprevent acircumvention of labor laws
Te principalbecomes solidarilyliable w/ tecontractor in teeven te latter failsto pay te EEswages and forviolation of labor
standard laws! Teliability, oweverdoes not e*tend tote paymt of backwages orseparation pay of EEs wo are illegallydismissed
Te principalbecomes solidarilyliable w/ tecontractor not onlyfor unpaid wagesbut also for all terigtful claims of te EEs under te
L5 ?N# ?N5HLL?'JL?%
>ermissible >roibited by law>resence of substantial capitalor investment
None
Note6 Te principal sall be %<LH#?'HLJ liable w/
te contractor in te event of any violation of any provision of te L5, including failure to paywages! Tis will not prevent te principal fromclaiming reimbursement from te contractor!
Note6 Te principal sall be deemed te E' of tecontractual EE in any of te ; cases asdeclared by competent autority6$! Labor(only contracting8 and"! 5ontracting arrangement falling w/in te
proibitions
Art 7$) =ND=RECT ER any person,partnersip, assoc or corp w/c not being n E',contracts w/ an independent contractor for teperf of any work, task, job or proj!
F <eatures o# Legiti!ate Contracting$! >arties – a principal +contractee. enters
into a contract w/ a contractor, or if teprincipal is imself a contractor, e entersinto contact w/ a sub(contractor! ?contracted job may be subcontracted,partly or wolly, unless proibited in tecontract!
"! %pecic job – te contract calls for teperformance or completion of a specic
job, work or service89! >eriod – suc job, work or service is to be
performed or completed w/in a denite orpredetermined period8 and
:! Location – te contracted job, work orservice may be performed or completedinside or outside te premises of teprincipal
?n independent contractor is one wo e*ercises6$! Hndependent ENT8"! 5ontracts to do a pc of work accdg to is
own metods8 and9! Hs not subj to control of E' result
Te labor contractor is legit if6$! Ke is a job contractor8 and"! Hs properly registered w/ #<LE as te
same
udicial Notice of ob 5ontracting( Te 5ourt as already taken judicial notice
of te general practice adopted in severalgort & private institutions and industries of iring independent contractors to perform
special services! Tese services range from janitorial, security and even tecnical oroter specic services! ile teseservices may be considered directly relatedto te principal business of te E',neverteless, tey are not necessary in teconduct of te principal business of te E'!
? manpower company may be a L<5 in onecase but an independent contractor in anoter!
)oca0cola ottlers Ph v 5ingpit/Lipercon was adjudged to be a L<5 in a previouscase +1uarin v Lipercon., for lacking tesubstantial capital! 7ut not so in te present case,were it as been able to establis its caractedas an independent contractor! ?side form iringits own EEs and paying te workers teir salaries,it also e*ercised supervision & control over tem,w/c is te most important aspect in determiningE'(EE 'elsp!Art 7) "OST=N6 O< BOND
( ?n E' or indirect E' may re)uire tesub/contractor to furnis a bond e)ual tote cost of labor under contract, oncondition tat te bond will answer for tewages due te EEs sould tesub/contractor, as te case may be fail topay te same!
( ere te E' fails to re)uire te contractorto post a bond, te E' must answer forwatever liabilities te contractor mayave incurred to is EEs! Tis is w/oprejudice to its seeking reimbursementfrom te contractor for watever amt it willave to pay te EEs!
Art 79) SOL=DAR L=AB=L=T Te provision of e*isting laws to te contrary
notwitstanding, every E' or indirect E' sallbe eld responsible w/ is sub/contractor for
any violation of any provision of te L5! Dorpurposes of determining te e*tent of teircivil liability under tis 5, tey sall beconsidered as direct E's!
Te e*istence of E'(EE 'elsp is a precondition toentitlement to labor standards & labor relatios's!
E*tent of >rincipal@s Liability in Legitimate5ontracting( solidarily liable in te event of any violation
of any provisions of te L5$! Dor wages and money claims – if tesub/contractor fails to pay te wages of is EEs in accdance w/ te L5, te E'sall be jointly & severally +solidarily.liable w/ is contractor to suc EEs tote e*tent of work performed under tecontract, in te same manner & e*tenttat e is liable to EEs directlyemployed by im!
Ke cannot escape tis liability evenif e as paid te workers@ wage rate inaccordance w/ te contract w/ te
contractor! Te EEs are not privy to tecontract! ?lso, te labor standardlegislations are considered written inevery contract! %imilarly, legislatedwage increases are deemedamendments to te contract! Tus, E'scannot ide beind teir contracts inorder to evade teir or teircontractor@s liability for noncompliancew/ te statutory min wage, w/oprejudice to is ' to recover wateveramount e paid from te contractor!
"! a. 'eimbursement – te joint & severalliability of te contractor & te principalunder ?rts $G, $G4 & $G2 of te L5 ismandated to assure compliance of teprovisions including te statutory minwage! Te contractor is made liable byvirtue of is status as te direct E'8 andte principal is made te indirect E' of te contractor@s EEs for purposes of paying te EEs teir wages sould tecontractor fail to do so!
( were no E'(EE 'elspe*ists bet te parties, as toreimbursement bet te principal & tecontractor, te 'T5 as jurisdiction
b. >ayment before 'eimbursement –but one may seek reimbursement only?DTE' it as paid te EEs!
c. Dor <ter Piolations – )ualied orlimited liability8 if te liability is forfailure to pay te min wage, or te %HL,or oter benets derived from orprovided for by law, te principal ise)ually liable w/ te contractor as if teprincipal were te direct E'!
7UT, if te liability is invested w/punitive caracter, suc as an award forbackwages & separation pay because of an illegal dismissal of te contractor@sEE, te liability sould be solel' tato# te contractor in absence of proof tat te principal conspired w/ tecontractor in te commission of teillegal dismissal!
9! %% & welfare benets8:! %elf(orgs, 57 and peaceful concerted
action8 andC! %ecurity of tenure!
5ertain conditions re)uired e*pressly stipulated in
te ENT 5ontract$! %pecic description of te job, work or
service to be performed by te contractualEE8
"! Te place of work and terms & conditionsof ENT, uncluding a statement of te wagerate applicable to te indiv contractual EE8and
9! Te term/duration of ENT, w/c sall becoe*tensive w/ te contract of teprincipal & contractor or w/ te specicpase for w/c te contractual EE isengaged, as te case may be!
Te sub/contractor sall inform tecontractual EE of te foregoing terms &conditions on or before te $st day of isENT!
%ecurity of Tenure6a! in cases of termination of ENT prior to te
e*piration of te contract bet te principal& te sub/contractor, te ' of tecontractual EE to separation pay or oterrelated benets sall be governed byapplicable laws & jurisprudence ontermination of ENT!
b! ere te termination results frome*piration of contract bet te principal &te contractor, or from completion of tepase of te job for w/c te EE isengagednot entitled to separation pay! owever, tis sall be w/o prejudice tocompletion bonuses or oter emoluments,incl retirement pay as may be provided bylaw/contract bet te principal & tecontractor!
%ecurity of tenure re)uires procedural dueprocess for termination of ENT!
No security of tenure for casual EEs!'egistration of 5ontractors'e)uirements6
$! %ubmission of annual reportsa! %worn undertaiking tat te sss,
Kome #evt Butual Dund,>ilKealt, EEs 5ompensation5ommission +E55., and 7H'remittances
"! Tey are subj to routine inspection by te#<LE
E;ect of Nonregistration6
1'6 Te absence of registration gives rise to tepresumption tat te contractor is engaged inL<5,
7ut, if te contractor directly supervises teworkers & imposes disciplinary action, e)ualies as a legit contractor despitenonregistration w/ #<LE!
Art) 77) ORER "RE<ERENCE =N CASE O<BANRU"TC( orkers sall enjoy rst %re#erence as
regards teir unpaid wages & otermonetary claims, any provision of law tote contrary notwitstanding!
( Unpaid wages earned by EEs before tedeclaration of bankruptcy or judicial
li)uidation of te E'@s business sall begiven rst preference & sall be paid in fullbefore oter creditors may establis anyclaim to sare in te assets of teemployer!
( Not only unpaid wages, but also otermonetary claims to w/c even claims of tegovt must be deemed subordinate!
n/a in case te E'(corp is underreabilitation!
5onditions6$! Dormal declaration of insolvency or
bankruptcy8"! 1eneral judicial li)uidation proceedings of
te E'@s business8 and9! Diling of claims by workers!
Art 777) ATTORNEMS <EES'ules6
$! Hn cases of unlawful witolding of wages,te culpable party may be assessed atty@sfees e)uivalent to $GR of te amt of wages recovered!
"! Ht sall be unlawful for any person todemand or accept, in any judicial or adminproceedings for te recovery of te wages,atty@s fees w/c e*ceed $GR of te amt of wages recovered!
5oncepts of ?tty@s Deesa! <rdinary – reasonable compensation paid
to a lawyer by is client for te legalservices e as rendered!
b! E*traordinary – indemnity for damagesordered by te court to be paid by telosing party in a litigation, and is not to bepaid to te lawyer but to te client, unlesstey ave agreed tat te award sall
pertain to te lawyer as an addtlcompensation or as a part tere of!
1'6 ?warded atty@s fee may not e*ceed $GR, but bet lawyer & client .uantu! !eruit may
$! Te time spent & te e*tent of servicesrendered or re)uired8
"! Te novelty & di=culty of te )uestions
involved89! Te importance of te subject matter8:! Te skill demanded8C! Te probability of losing oter ENT as a
result of acceptance of te proferred H7>capter to w/c te lawyer belongs8
! Te amt involved in te controversy andte benets resulting to te client fromte services8
4! Te contingency of certainty of compensation8
3! Te caracter of ENT, weter occasionalor establised8 and
2! Te professional standing of te lawyer!
" Winds of 5ases were ?tty@s Dees may be?ssessed6$! 5ases arising from unlawful witolding of
wages8 and"! 5ases arising from 57?s!9! 5laims for deat benets +5eirs o*
Ani-an" 6 ?rt $$$ does not limit te award
of atty@s fees to cases of unlawfulwitolding of wages only! at ite*plicitly proibits is te award of atty@s
fees w/c e*ceed $GR of te amt of wagesrecovered!
Non(lawyers not entitled to ?tty@s Dees"1'6 ?ltoug te law allows non(lawyers to
appear before te NL'5 or any Labor ?rbiter,tis does not mean tat tey are entitled toatty@s fees! Entitlement to atty@s feespresupposes te e*istence of E'(EE 'elsp,and tis cannot e*ist unless te client@s rep is
a lawyer! Union %ervice Dee –non(lawyers may representteir org or members! Te said laborfederations & local unions ave a valid claim toatty@s fees!
>?< lawyers are dis)ualied from being awardedatty@s fees!
