2016 SPECTRA LABOR STANDARDS - Orals Purposes

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LABOR STANDARDS
COMPILATION
Based on the outline by: Atty. Jefferson Marquez
Compiled By: KRB
Updated By: MFLH (2014 edition)
Updated BY: MCT (2015 edition)
Updated By: AppLe (2016 edition)

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Table of Contents
TOPIC 1: THE APPLICABLE LAWS ..........................................................................................................................................10
Law: PD 442 as amended by RA 6715 approved on March 21, 1989 .............................................................................................................................10
CONCEPT OF LABOR .......................................................................................................................................................................................................10
FOUR SYSTEMS OF LABOR (Sla-Ser-Free-Wage; Slasher Free Wage; S-S-F-W )..............................................................................................................10
THREE FIELDS OF LABOR LAW (S-R-S).............................................................................................................................................................................11
OMNIBUS RULES AS AMENDED......................................................................................................................................................................................12
SUPREME COURT DECISIONS .........................................................................................................................................................................................12
BASIS OF ENACTING LABOR LAWS (P-S-P-D) ..................................................................................................................................................................12
LIMITATIONS IN THE ENACTMENT OF LABOR LAWS (P-E-N-D-O) ..................................................................................................................................13
SOURCES OF LABOR LAWS - LABOR STANDARDS (R-O-L-J) ............................................................................................................................................14
SOURCES OF LABOR LAWS (LABOR RELATIONS) ............................................................................................................................................................14
PROVISIONS ON THE EFFECTIVITY OF LABOR LAWS.......................................................................................................................................................14
RULES ON THE IMPLEMENTATION AND INTERPRETATION OF LABOR LAWS.................................................................................................................15
TRIPARTISM .................................................................................................................................................................................................................... 16
TOPIC 2: BASIC PRINCIPLES ..................................................................................................................................................19

CONSTITUTIONAL AND STATUTORY RIGHTS OF WORKERS IN GENERAL .......................................................................................................................19
SPECIFIC RIGHTS OF WORKERS.......................................................................................................................................................................................20
ASPECTS OF LABOR STANDARDS ....................................................................................................................................................................................21
PURPOSE OF LABOR STANDARDS...................................................................................................................................................................................21
SOURCES OF LABOR STANDARDS ...................................................................................................................................................................................21
CONCEPT OF EMPLOYER-EMPLOYEE (LABOR STANDARDS) ...........................................................................................................................................22
CONCEPT OF EMPLOYER-EMPLOYEE (LABOR RELATIONS).............................................................................................................................................22
CONCEPT OF EMPLOYER-EMPLOYEE RELATIONSHIP .....................................................................................................................................................23
FOUR-FOLD TEST (S-W-D-C) ...........................................................................................................................................................................................24
(TWO-TIERED TEST) ECONOMIC REALITY TEST...............................................................................................................................................................26
EMPLOYER-EMPLOYEE VS. PRINCIPAL-AGENT ...............................................................................................................................................................27
PRINCIPAL-AGENT RELATIONSHIP ..................................................................................................................................................................................27
EMPLOYER-EMPLOYEE VS. PRINCIPAL-CONTRACTOR (DO NO. 9).................................................................................................................................28
PRINCIPAL- INDIVIDUAL INDEPENDENT CONTRACTOR (FREE ARTISAN) RELATIONSHIP................................................................................................28
CHIEF CHARACTERISTICS OF AN EMPLOYEE ...................................................................................................................................................................28
TOPIC 3: THE RIGHT TO HIRE................................................................................................................................................34

NATURE: RIGHT OR PREROGATIVE? ...............................................................................................................................................................................34
MANAGEMENT PREROGATIVE .......................................................................................................................................................................................34
EXERCISE OF RIGHT/PREROGATIVE: ABSOLUTE? ...........................................................................................................................................................34
LEGAL LIMITATIONS/PROHIBITIONS PRIOR TO HIRING..................................................................................................................................................34
DEPARTMENT ORDER NO. 04 ..............................................................................................................................................43

COMPULSORY HIRING OF EMPLOYEES...........................................................................................................................................................................45
RA 7920 NEW ELECTRICAL ENGINEERING LAW..............................................................................................................................................................45
TOPIC 4: WAGES AND WAGE FIXING ...................................................................................................................................54

University of San Carlos – School of Law and Governance | Based on the Outline of JMM Page 2
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CONCEPT OF WAGE AND SALARY...................................................................................................................................................................................54

PRINCIPLES ..................................................................................................................................................................................................................... 54
FACILITIES AND SUPPLEMENT ........................................................................................................................................................................................55
WORKER’S LIEN .............................................................................................................................................................................................................. 63
EXEMPTION FROM EXECUTION OR ATTACHMENT ........................................................................................................................................................63
METHODS OF FIXING COMPENSATION ..........................................................................................................................................................................63
RA 6727 .......................................................................................................................................................................................................................... 65
WAGE RATIONALIZATION ACT........................................................................................................................................................................................65
POLICIES OF THE STATE ..................................................................................................................................................................................................65
GOVERNMENT AGENCIES INVOLVED .............................................................................................................................................................................66
PROHIBITION AGAINST INJUNCTION..............................................................................................................................................................................67
NWPC GUIDELINES NO.001-95, REVISED RULES OF PROCEDURE ON MINIMUM WAGE FIXING ...................................................................................67
MINIMUM WAGE FIXING PROCEDURE FLOW ................................................................................................................................................................72
CONCEPTS: BASIC WAGE, STATUTORY MINIMUM WAGE, WAGE ORDER .....................................................................................................................73
PURPOSE OF MINIMUM WAGE ......................................................................................................................................................................................77
EMPLOYEE’S RIGHT TO A LIVING WAGE vs RIGHT OF EMPLOYER TO REASONABLE RETURN OF INVESTMENT ............................................................77
POWER TO ISSUE WAGE ORDERS...................................................................................................................................................................................78
TWO METHODS OF DETERMINING WAGES....................................................................................................................................................................79
NON-DIMINUTION OF BENEFITS ....................................................................................................................................................................................79
WAGE ORDERS APPLICABLE IN CEBU, MANDAUE & LAPU-LAPU CITIES [2012] .............................................................................................................79
EXEMPTION FROM WAGE ORDERS: ...............................................................................................................................................................................81
EXEMPTION UNDER THE LABOR CODE (ART.98) ............................................................................................................................................................83
RA 9178 (BARANGAY MICRO BUSINESS ENTERPRISES ACT OF 2002) ............................................................................................................................83
POWER TO ISSUE RULES ON EXEMPTION - NWPC .........................................................................................................................................................83
POWER TO GRANT EXEMPTIONS – RTWPB....................................................................................................................................................................84
PROCEDURE FOR EXEMPTION AND APPEAL...................................................................................................................................................................85
WAGE DISTORTION ........................................................................................................................................................................................................85
METHODS OF RESOLVING WAGE DISTORTION ..............................................................................................................................................................87
PROCEDURE FOR RESOLVING IN AN ORGANIZED ESTABLISHMENT...............................................................................................................................87
PROCEDURE FOR RESOLVING WAGE DISTORTION IN AN UNORGANIZED ESTABLISHMENT .........................................................................................88
WAGE DISTORTION RESOLUTION FLOWCHART .............................................................................................................................................................90
JURISDICTION OVER WAGE DISTORTION DISPUTES.......................................................................................................................................................91
SPECIAL CIVIL ACTIONS...................................................................................................................................................................................................92
TOPIC 5: VIOLATION OF WAGE ORDERS ..............................................................................................................................97

DOUBLE INDEMNITY AND IMPRISONMENT ...................................................................................................................................................................97
DOLE D.O. No. 10, SERIES OF 1998 [GUIDELINES ON THE IMPOSITION OF DOUBLE INDEMNITY FOR NON-COMPLIANCE WITH THE PRESCRIBED
INCREASES OR ADJUSTMENT IN WAGE RATES]..............................................................................................................................................................98
JURISDICTION ................................................................................................................................................................................................................. 99
TOPIC 6: WAGE ENFORCEMENT AND RECOVERY ..............................................................................................................103

TWO ENFORCEMENT TOOLS ........................................................................................................................................................................................103
JURISDICTION, SCOPE AND LIMITATIONS.....................................................................................................................................................................104
PROCEDURE ON VISITORIAL AND ENFORCEMENT POWER..........................................................................................................................................105
VISITORIAL AND ENFORCEMENT POWER FLOWCHART ...............................................................................................................................................107
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PROCEDURE ON RECOVERY OF WAGES AND SIMPLE MONEY CLAIMS ........................................................................................................................108

SIMPLE MONEY CLAIMS FLOWCHART..........................................................................................................................................................................109
ENFORCEMENT POWER ON HEALTH/SAFETY OF WORKERS ........................................................................................................................................110
BONA FIDE SUSPENSION OF OPERATIONS ...................................................................................................................................................................110
ANTI-INJUCTION ........................................................................................................................................................................................................... 111
MAINTENANCE OF EMPLOYMENT RECORDS, PLACE AND PRESERVATION OF RECORDS ............................................................................................112
COMPROMISE OF LABOR STANDARD CASES................................................................................................................................................................112
REVISED RULES ON DISPOSITION OF LABOR STANDARDS CASES (SERIES OF 1987) ....................................................................................................130
DO NO. 7-A, SERIES OF 1995 ........................................................................................................................................................................................134
FINDINGS OF FACTS, FINAL...........................................................................................................................................................................................135
UPDATES....................................................................................................................................................................................................................... 135
TOPIC 7: WAGE PROTECTION PROVISIONS & PROHIBITIONS REGARDING WAGES...........................................................137

NON-INTERFERENCE IN THE DISPOSAL OF WAGES ......................................................................................................................................................137
WAGE DEDUCTION .......................................................................................................................................................................................................137
DEPOSITS FOR LOSS/DAMAGE .....................................................................................................................................................................................138
WITHOLDING/KICKBACKS.............................................................................................................................................................................................138
DEDUCTION TO ENSURE EMPLOYMENT.......................................................................................................................................................................138
RETALIATORY MEASURES .............................................................................................................................................................................................139
FALSE REPORTING ........................................................................................................................................................................................................139
WITHOLDING OF WAGES (FROM THE CIVIL CODE) ......................................................................................................................................................139
PRINCIPLE OF ‘NON-DIMINUTION OF BENEFITS...........................................................................................................................................................139
TOPIC 8: PAYMENT OF WAGES ..........................................................................................................................................140

FORM: LEGAL TENDER ..........................................................................................................................................................141
PLACE OF PAYMENT .....................................................................................................................................................................................................142
RA 6727-PAYMENT THRU BANKS .................................................................................................................................................................................142
THRU ATM (DOLE Labor Advisory on Payment of Salaries Thru ATM, Series of 1996) ................................................................................................143
PAYEE............................................................................................................................................................................................................................ 143
TIME/FREQUENCY OF PAYMENT ..................................................................................................................................................................................144
UPDATES....................................................................................................................................................................................................................... 145
TOPIC 9: CONDITIONS OF EMPLOYMENT ..........................................................................................................................146

NORMAL HOURS OF WORK ..........................................................................................................................................................................................146
OTHER HOURS OF WORK .............................................................................................................................................................................................146
CHILD LABOR ........................................................................................................................................................................................................................................... 146
TEACHING OR ACADEMIC PERSONNEL....................................................................................................................................................................................................147
DOMESTIC WORKER ................................................................................................................................................................................................................................147
HOURS WORKED .......................................................................................................................................................................................................... 148

KEEPING OF TIME RECORDS: ENTRIES, EXECUTIVES & WORKERS PAID BY RESULTS ...................................................................................................148
REST PERIODS ............................................................................................................................................................................................................... 148
WORKWEEK.................................................................................................................................................................................................................. 150
HEALTH PERSONNEL.....................................................................................................................................................................................................154
WEEKLY REST DAY ........................................................................................................................................................................................................155
METHODS OF FIXING COMPENSATION ........................................................................................................................................................................158
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2014 DOLE BWC HANDBOOK ON WORKER’S STATUTORY MONETARY BENEFITS .......................................................................................................158

D. Monthly-Paid Employees and Daily-Paid Employees ..............................................................................................................................................158
Monthly-paid employees are those who are paid everyday of the month, including unworked rest days, special days, and regular holidays. Factor 365
days in a year is used in determining the equivalent monthly salary of monthly-paid employees. ............................................................................158
Daily-paid employees are those who are paid on the days they actually worked and on unworked regular holidays. ..............................................158
Computation of the Estimated Equivalent Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Employees ..........................................................158
For monthly-paid employees: ......................................................................................................................................................................................159
Factor 365 days in a year is used in determining the equivalent annual and monthly salary of monthly-paid employees. To compute their Estimated
Equivalent Monthly Rate (EEMR), the procedure is as follows: ...................................................................................................................................159
UPDATES....................................................................................................................................................................................................................... 160
TOPIC 10: MINIMUM LABOR STANDARDS BENEFITS .........................................................................................................161

EMPLOYEES EXEMPTED................................................................................................................................................................................................161
Rule I, Book III, Section 2 ..............................................................................................................................................................................................161
Employees not covered by this provision [Art 82] .......................................................................................................................................................161
OVERTIME WORK ......................................................................................................................................................................................................... 162
“DAY’”........................................................................................................................................................................................................................... 164
UNDERTIME NOT OFFSET BY OVERTIME; ANALOGOUS CASES ....................................................................................................................................165
PREMIUM PAY; CONCEPT.............................................................................................................................................................................................165
OVERTIME PAY; WAIVER OF OVERTIME; RULE; EXCEPTION ........................................................................................................................................166
SERVICE INCENTIVE LEAVE ...........................................................................................................................................................................................167
HOLIDAY PAY ................................................................................................................................................................................................................ 168
NIGHT SHIFT DIFFERENTIAL..........................................................................................................................................................................................171
SERVICE CHARGES ........................................................................................................................................................................................................172
UPDATES....................................................................................................................................................................................................................... 172
TOPIC 11: OTHER SPECIAL BENEFITS.............................................................................................................................177

13TH MONTH PAY (PD 851, as amended) ....................................................................................................................................................................177
PATERNITY LEAVE ACT OF 1996 (R.A 8187)..................................................................................................................................................................178
DOMESTIC ADOPTION ACT OF 1998 (RA 8552)............................................................................................................................................................179
RETIREMENT PAY LAW .................................................................................................................................................................................................179
SOLO PARENT WELFARE ACT (R.A.9872) ......................................................................................................................................................................180
ANTI-VIOLENCE AGAINST WOMEN & THEIR CHILDREN ACT OF 2004 (R.A 9262) ........................................................................................................182
MAGNA CARTA OF WOMEN (RA. 9710) .......................................................................................................................................................................183
THE ROOMING-IN AND BREAST-FEEDING ACT OF 1992 (RA 7600) ..............................................................................................................................185
AS AMENDED BY EXPANDED BREASTFEEDING PROMOTION ACT OF 2009 (RA 10028)...............................................................................................185
SUMMARY OF STATUTORY LEAVE BENEFITS................................................................................................................................................................188
UPDATES....................................................................................................................................................................................................................... 188
TOPIC 12: JURISDICTION OF THE LABOR ARBITER .............................................................................................................193

ORIGINAL AND EXCLUSIVE JURISDICTION ....................................................................................................................................................................193
CONCURRENT JURISDICTION OF OTHER AGENCIES .....................................................................................................................................................194
LETTERS OF INSTRUCTION NO. 368, January 26, 1976 (LIST OF INDUSTRIES INDISPENSABLE TO NATIONAL INTEREST) ............................................196
JURISDICTION OF LOWER COURTS ...............................................................................................................................................................................197
LABOR DISPUTES .......................................................................................................................................................................................................... 197
INTRA-CORPORATE DISPUTES ......................................................................................................................................................................................197
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INSTANCES WHERE THE LABOR ARBITER DOES NOT HAVE JURISDICTION ..................................................................................................................198
UPDATES....................................................................................................................................................................................................................... 198
TOPIC 13: THE 2011 NLRC RULES OF PROCEDURE.............................................................................................................207

COMPULSORY ARBITRATION vs VOLUNTARY ARBITRATION........................................................................................................................................207
AGENCIES OF GOVERNMENT EXERCISING COMPULSORY ARBITRATION.....................................................................................................................208
GUIDELINES ON THE SINGLE-ENTRY APPROACH PRESCRIBING A 30 DAY MANDATORY CONCIILIATION-MEDIATION SERVICES FOR ALL LABOR AND
EMPLOYMENT AGENCIES (DOLE Department Order No, 107-10, Series of 2010) .......................................................................................................213
DOLE RULES OF PROCEDURE OF THE SINGLE ENTRY APPROACH (February 25, 2011) ................................................................................................219
SINGLE ENTRY APPROACH FLOWCHART ......................................................................................................................................................................224
STRENGTHENING CONCILIATION-MEDIATION AS A VOLUNTARY MODE OF DISPUTE SETTLEMENT FOR ALL LABOR CASES (RA 10396)....................225
COMPLAINT; CAUSE OF ACTION/S; REAL PARTIES-IN-INTEREST; AMENDMENT OF COMPLAINT; CERTIFICATE OF NON-FORUM SHOPPING ............225
VENUE AND JURISDICTION ...........................................................................................................................................................................................226
MONEY CLAIMS OF OFW (RA 8042 as amended by RA 9422 & Ra 10022) ..................................................................................................................227
SERVICE OF SUMMONS; NATURAL & JURIDICAL PERSON/S; MODE OF SERVICE OF NOTICES, RESOLUTION, ORDER OF DECISION...........................228
RAFFLE AND ASSIGNMENT OF CASES ...........................................................................................................................................................................229
APPEARANCES OF LAWYERS AND NON-LAWYERS .......................................................................................................................................................229
PERMISSIBLE GROUNDS TO DISMISS COMPLAINT; PROHIBITED PLEADINGS & MOTIONS..........................................................................................231
MANDATORY CONCILIATION & MEDIATION CONFERENCE .........................................................................................................................................232
WAIVER OF RIGHT TO FILE POSITION PAPER & LIFTING OF ORDER OF WAIVER..........................................................................................................233
COMPROMISE BEFORE REGIONAL DIRECTOR AND LABOR ARBITER............................................................................................................................233
SIMULTANEOUS FILING OF POSITION PAPER; CONTENTS OF POSITION PAPER; REPLY POSITION PAPER & CONTENTS.............................................234
QUANTUM OF EVIDENCE & BURDEN OF PROOF..........................................................................................................................................................234
CONDUCT OF HEARING OR CLARIFICATORY CONFERENCE ..........................................................................................................................................235
INHIBITION ................................................................................................................................................................................................................... 235
CONTEMPT ................................................................................................................................................................................................................... 236
APPEAL PROCEDURE.....................................................................................................................................................................................................237
FRIVOLOUS OR DILATORY APPEALS..............................................................................................................................................................................238
NEW SCHEDULE OF LEGAL FEES ...................................................................................................................................................................................238
NLRC EN BANC RESOLUTION NO. 08-07.......................................................................................................................................................................238
REQUISITES TO PERFECT APPEAL .................................................................................................................................................................................255
PROHIBITED APPEALS, INTERLOCUTORY ORDER & FINAL ORDER................................................................................................................................256
RULES ON REINSTATEMENT PENDING APPEAL ............................................................................................................................................................257
THE NATIONAL LABOR RELATIONS COMMISSION (NLRC) ............................................................................................................................................257
EO No. 204, Series of 2003 – DELEGATING TO THE SECRETARY OF LABOR AND EMPLOYMENT THE POWER TO EXERCISE ADMINISTRATIVE SUPERVISION
OVER THE NATIONAL LABOR RELATIONS COMMISSION..............................................................................................................................................259
POWERS AND FUNCTIONS OF THE NLRC......................................................................................................................................................................260
FINALITY OF NLRC & LABOR ARBITER’S DECISION........................................................................................................................................................261
2011 NLRC RULES OF PROCEDURE FLOWCHART..........................................................................................................................................................263
EXECUTION OF JUDGMENT ..........................................................................................................................................................................................264
PRE-EXECUTION CONFERENCE; ISSUANCE & QUASHAL OF WRIT OF EXECUTION .......................................................................................................272
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THIRD PARTY CLAIMS ...................................................................................................................................................................................................272

EXTRAORDINARY REMEDIES FROM ORDER OR RESOLUTION OF LABOR ARBITER.......................................................................................................273
APPELLATE REMEDIES ..................................................................................................................................................................................................275
UPDATES....................................................................................................................................................................................................................... 276
TOPIC 14: OTHER IMPORTANT LABOR PROVISIONS ..........................................................................................................280

A. CONTRACTING ARRANGEMENT ...............................................................................................................................................................................280
TRILATERAL RELATIONSHIP .....................................................................................................................................................................................................................281
JOB CONTRACTING VS LABOR-ONLY CONTRACTING...............................................................................................................................................................................281
SCOPE AND NATURE OF LIABILITY OF PRINCIPAL AND CONTRACTOR ....................................................................................................................................................282
DUTIES AND OBLIGATIONS OF PRINCIPAL AND CONTRACTOR ...............................................................................................................................................................283
RIGHTS OF CONTRACTUAL EMPLOYEES ..................................................................................................................................................................................................283
INDIVIDUAL INDEPENDENT CONTRACTOR ..............................................................................................................................................................................................283
D.O No. 18-A-11...................................................................................................................................................................................................................................... 291
WAGE INCREASES; LEGISLATED & CONTRACTUAL; EFFECT ON PRINCIPAL & CONTRACTOR’S LIABILITY ...............................................................................................299
D.O No. 14, series 2007 ...........................................................................................................................................................................................................................308
EMPLOYMENT & WORKING CONDITIONS OF SECURITY GUARDS (Department Order No. 14, series of 2001) .....................................................................................309
PRIVATE SECURITY AGENCY LAW (RA 5487)............................................................................................................................................................................................310
DO No 1 SERIES of 2007 (CLARIFYING THE APPLICABILITY OF DO No. 18-02 TO COOPERATIVES) ..........................................................................................................313
CLARIFYING THE APPLICABILITY OF DO 18-A TO BPO, KPO & CONSTRUCTION INDUSTRY .....................................................................................................................314
DOLE DEPARTMENT CIRCULAR NO. 1......................................................................................................................................................................................................315
REVIEW QUESTIONS ................................................................................................................................................................................................................................318
UPDATES.................................................................................................................................................................................................................................................. 319
B. WORKER’S PREFERENCE ...........................................................................................................................................................................................323

UPDATES.................................................................................................................................................................................................................................................. 326
C. ATTORNEY’S FEES & APPEARANCE OF LAWYERS .....................................................................................................................................................328

UNLAWFUL AND LAWFUL WITHHOLDING OF WAGES; CONCEPT...........................................................................................................................................................328
ATTORNEY’S FEES; 2 CONCEPTS ..............................................................................................................................................................................................................328
APPEARANCE OF LAWYERS AND NON-LAWYERS (ART. 222); REVISED RULES OF NLRC .........................................................................................................................329
AWARD OF ATTORNEY’S FEES: LIMITATIONS (ART. 2208, CIVIL CODE)...................................................................................................................................................330
TOPIC 15: MISCELLANEOUS PROVISIONS...........................................................................................................................332

A. SPECIAL TYPES OF WORKERS....................................................................................................................................................................................332
APPRENTICES........................................................................................................................................................................................................................................... 332
LEARNERS ................................................................................................................................................................................................................................................ 335
HANDICAPPED WORKERS ........................................................................................................................................................................................................................336
MAGNA CARTA FOR DISABLED PERSONS (RA 7277, as amended)..........................................................................................................................................................336
REVIEW POINTS .......................................................................................................................................................................................................................................338
RA 7796 (TESDA ACT of 1994) .................................................................................................................................................................................................................339
B. EMPLOYMENT OF WOMEN ......................................................................................................................................................................................341

SEC. 14, ART II, CONSTITUTION & SEC. 14, ART. XIII................................................................................................................................................................................341
FACILITIES FOR WOMEN..........................................................................................................................................................................................................................341
MATERNITY LEAVE BENEFITS...................................................................................................................................................................................................................341
SOCIAL SECURITY ACT OF 1997 (RA 8282)...............................................................................................................................................................................................342
FAMILY PLANNING SERVICES...................................................................................................................................................................................................................342
PROHIBITED DISCRIMINATION ................................................................................................................................................................................................................343
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CRIMINAL LIABILITY .................................................................................................................................................................................................................................343

PROHIBITED ACTS ....................................................................................................................................................................................................................................343
WOMEN WORKING IN NIGHTCLUBS .......................................................................................................................................................................................................344
ANTI-VIOLENCE AGAINST WOMEN & THEIR CHILDREN’S ACT OF 2004 (RA 9262) .................................................................................................................................344
OTHER SPECIAL LAWS..............................................................................................................................................................................................................................344
MAGNA CARTA OF WOMEN (RA 9710) ...................................................................................................................................................................................................347
IMPLEMENTING RULES AND REGULATIONS OF RA 9710 (Philippine Commission on Women Board Resolution No. 1, S. 2010)..........................................................347
GUIDELINES GOVERNING THE IMPLEMENTATION OF SPECIAL LEAVE BENEFITS FOR WOMEN EMPLOYEES IN THE PRIVATE SECTOR (DOLE Department Order No. 112-11,
as amended by DOLE Department Order No. 112-A, Series of 2012) .....................................................................................................................................................347
THE EXPANDED BREASTFEEDING PROMOTION ACT OF 2009 .................................................................................................................................................................349
C. EMPLOYMENT OF NURSING EMPLOYEES.................................................................................................................................................................354

EXPANDED BREASTFEEDING PROMOTION ACT OF 2009 (RA 10028)......................................................................................................................................................354
D. EMPLOYMENT OF NIGHT WORKERS ........................................................................................................................................................................358

RA 10151: AN ACT ALLOWING THE EMPLOYMENT OF NIGHT WORKERS, THEREBY REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL DECREE NUMBER FOUR
HUNDRED FORTY-TWO, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES .............................................................................................358
IRR D.O. NO. 119-12 ................................................................................................................................................................................................................................362
WOMEN NIGHT WORKERS ......................................................................................................................................................................................................................363
E. EMPLOYMENT OF CHILDREN ....................................................................................................................................................................................364

LABOR CODE PROVISIONS .......................................................................................................................................................................................................................364
SPECIAL LAWS.......................................................................................................................................................................................................................................... 364
REVISED PENAL CODE .................................................................................................................................................................................................369
F. EMPLOYMENT OF DOMESTIC WORKERS ..................................................................................................................................................................371

RA 10361 ................................................................................................................................................................................................................................................. 372
IRR OF RA 10361......................................................................................................................................................................................................................................379
G. EMPLOYMENT OF HOMEWORKERS .........................................................................................................................................................................398

LABOR CODE............................................................................................................................................................................................................................................ 399
DO. NO. 5 SERIES 1992 (REGULATIONS ON EMPLOYMENT OF HOMEWORKERS)...................................................................................................................................399
H. EMPLOYMENT OF NON-RESIDENT ALIENS...............................................................................................................................................................401

LABOR CODE............................................................................................................................................................................................................................................ 401
EMPLOYMENT OF ALIENS........................................................................................................................................................................................................................402
REVISED RULES FOR ISSUANCE OF EMPLOYMENT PERMITS TO FOREIGN NATIONALS (DOLE DO No. 97-09, Series of 2009, as amended by DOLE DO No. 120-12, Series of
2012) ....................................................................................................................................................................................................................................................... 403
RULES GOVERNING THE ISSUANCE OF SPECIAL WORK PERMIT (SWP); PROVISIONAL PERMIT TO WORK (PPW), and PRE-ARRANGED EMPLOYMENT VISA UNDER SECTION
9(G) (BI MEMO ORDER NO. AFFJr-No 05-009) ........................................................................................................................................................................................405
SPECIAL VISA FOR EMPLOYMENT............................................................................................................................................................................................................405
DOLE Memorandum Circular No. 04, Series of 2009...............................................................................................................................................................................406
DOJ Memorandum Circular No. RAD-JR-11-007......................................................................................................................................................................................406
OTHER SPECIAL LAWS: SPECIAL ECONOMIC ZONE ACT OF 1995 (RA 7916)............................................................................................................................................407
Foreign Investments Act & Discussions........................................................................................................................................................................407

I. EMPLOYMENT OF STUDENTS AND WORKING SCHOLAR...........................................................................................................................................409
WORKING SCHOLAR UNDER OMNIBUS RULE..........................................................................................................................................................................................409
REPUBLIC ACT NO. 7323, as amended by RA 9547, Series of 2009.........................................................................................................................................................409
WORK APPRECIATION PROGRAM / YOUTH TRAINEE, STUDENT TRAINEE (EO 139) ...............................................................................................................................410
REPUBLIC ACT NO. 7686: DUAL TRAINING SYSTEM ACT OF 1994...........................................................................................................................................................410
J. EMPLOYMENT OF ACADEMIC / NON-ACADEMIC PERSONNEL IN PRIVATE EDUCATIONAL INSTITUTION ................................................................411

2010 REVISED MANUAL OF REGULATIONS FOR PRIVATE SCHOOLS IN BASIC EDUCATION (DepEd Order No. 88, Series of 2010) ........................................................411
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2008 MANUAL OF REGULATIONS FOR PRIVATE HIGHER EDUCATION (CHED Memorandum Circular No. 40, Series of 2008) ..............................................................411
FULL TIME AND PART TIME TEACHING....................................................................................................................................................................................................412
K. EMPLOYMENT OF SENIOR CITIZENS .........................................................................................................................................................................412

EXPANDED SENIOR CITIZENS ACT OF 2010 (RA 9994).............................................................................................................................................................................412
IMPLEMENTING RULES AND REGULATIONS OF RA 9994 ........................................................................................................................................................................413
L. EMPLOYMENT OF DRIVERS AND CONDUCTORS IN THE PUBLIC UTILITY BUS TRANSPORT INDUSTRY.....................................................................413
DOLE DO No. 118-12, Series of 2012.......................................................................................................................................................................................................413
M. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY ...................................................................................................................................................414

MEDICAL AND DENTAL SERVICES ............................................................................................................................................................................................................414
EMPLOYEE’S COMPENSATION ACT .........................................................................................................................................................................................................417
LIABILITY OF STATE INSURANCE FUND....................................................................................................................................................................................................418
RULE AGAINST DOUBLE RECOVERY.........................................................................................................................................................................................................418
CIVIL LIABILITY OF EMPLOYERS ...............................................................................................................................................................................................................419
RA 7875 NATIONAL HEALTH INSURANCE ACT OF 1995 ..........................................................................................................................................................................419
BWC’S OCCUPATIONAL SAFETY AND HEALTH STANDARDS ....................................................................................................................................................................421
N. MIGRANT WORKER’S ACT/ RECRUITMENT AND PLACEMENT .................................................................................................................................424

DEFINITIONS ............................................................................................................................................................................................................................................ 424
POLICIES ON OVERSEAS EMPLOYMENT ..................................................................................................................................................................................................424
DEPLOYMENT BY LOCAL SERVICE CONTRACTOR AND MANNING AGENCIES..........................................................................................................................................425
GOVERNMENT AGENCIES INVOLVED ......................................................................................................................................................................................................426
ADJUDICATORY POWERS.........................................................................................................................................................................................................................428
RECRUITMENT AND PLACEMENT ............................................................................................................................................................................................................428
ILLEGAL RECRUITMENT ...........................................................................................................................................................................................................................428
WHEN COMMITTED IN A LARGE SCALE AND BY A SYNDICATE................................................................................................................................................................429
BAN ON DIRECT HIRING...........................................................................................................................................................................................................................430
TRAVEL AGENCIES ...................................................................................................................................................................................................................................430
MONEY CLAIMS .......................................................................................................................................................................................................................................430
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TOPIC 1: THE APPLICABLE LAWS

Law: PD 442 as amended by RA 6715 approved on March 21, 1989
“A DECREE INSTITUTING A LABOR CODE, THERBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD
PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND ENSURE INDUSTRIAL
PEACE BASED ON SOCIAL JUSTICE.”
Article 1. This Decree shall be known as the Labor Code of the Philippines
o May 1, 1974 – PD 442 was signed into law
o Took effect Nov. 1, 1974
Article 2. This Code shall take effect Six months after its promulgation
o RA 6715 – Herrera-Veloso Law
o Sen. Blas Ople – Father of Labor Code
Significance: Before the effectivity of the labor code, there was no provision on the terms and conditions of employment.
Significance of RA 6715:
Computation of Backwages – after RA 6715 took effect, the award of backwages from the time compensation was withheld up
to the actual reinstatement; However, Facilities should not be included in the computation of backwages for the reason that
such are given free, to be used only for official tour of duty and not for personal use.
CONCEPT OF LABOR
Ordinary Sense: is understood as the physical toil although it does not necessarily exclude the application of skill, thus, there is
skilled and unskilled labor; work; service
General Sense: it is the exertion of human being by his mental or physical effort towards production of goods or services.
Technical Sense: the working class or workingmen
Skill – the familiar knowledge of any art or science, united with readiness and dexterity in the execution or performance of the
application such art or science to practical purposes.
Work – it is broader than labor; covers all forms of physical or mental exertion or both combined, for the attainment of some object
other than recreation or amusement per se.
Worker – broader than employee; refer to self-employed people and those working in the service and under the control of another,
regardless of rank, title, or nature of work.
Employee – a salaried person working for another who controls or supervises the means, manner, or method of doing the work
NOTE: It is the workers or the working class who exerts or labors.
FOUR SYSTEMS OF LABOR (Sla-Ser-Free-Wage; Slasher Free Wage; S-S-F-W )
1. Slavery
Refers to the extraction of work or services from any person by means of enticement, violence, intimidation or threat,
use of force or coercion, including deprivation of freedom, abuse of authority or moral ascendancy, debt bondage or
deception. (DO 65-04 S2004)
The worker is owned by another at his free disposal
Prohibited in the Philippines
Section 18(2) of the Constitution: No involuntary servitude in any form shall exist except as a
punishment for a crime whereof the party shall have been duly convicted.
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Article 272, Revised Penal Code: Slavery. — The penalty of prision mayor and a fine of not exceeding
10,000 pesos shall be imposed upon anyone who shall purchase, sell, kidnap or detain a human being
for the purpose of enslaving him.
Section 4(a) of RA9208: Acts of Trafficking in Persons. - It shall be unlawful for any person, natural or
juridical, to commit any of the following acts: (a) To recruit, transport, transfer; harbor, provide, or
receive a person by any means, including those done under the pretext of domestic or overseas
employment or training or apprenticeship, for the purpose of prostitution, pornography, sexual
exploitation, forced labor, slavery, involuntary servitude or debt bondage;
2. Serfdom
Worker, by customary right to his Lord, owes certain service
Enforced labor of serfs on the fields of the landowners, in return for protection and the right to work on their leased
fields.
Prohibited in the Philippines
Article 274 of the RPC: Services rendered under compulsion in payment of debt. — The penalty of
arresto mayor in its maximum period to prision correccional in its minimum period shall be imposed
upon any person who, in order to require or enforce the payment of a debt, shall compel the debtor to
work for him, against his will, as household servant or farm laborer.
Section 12-D, RA7610 as amended: No child shall be engaged in the worst forms of child labor. The
phrase "worst forms of child labor" shall refer to any of the following: (1) All forms of slavery, as defined
under the "Anti-trafficking in Persons Act of 2003", or practices similar to slavery such as sale and
trafficking of children, debt bondage and serfdom and forced or compulsory labor, including
recruitment of children for use in armed conflict;
3. Free Artisan
A free person who offers his services to others subject to nobody’s will
The same with modern independent contractorship wherein an independent contractor is engaged in a business
separately distinct from the principal, the performed job, work or service, and works according to his own means and
methods, free from the control and direction of the principal except as to the results thereof.
Governed by Article 1713 of the Civil Code
4. Wage System
A person offers his services to another under an employment contract for which such service is paid by wages.
The same with modern employer-employee system where there is an employee under the control and supervision of
an employer as to the means, manner or method of which the work is to be accomplished including the result thereof
and is paid for the work done in terms of wage.
Covered by the Labor Code
NOTE: Only the Free Artisanship and Wage System of Labor are recognized in the Philippines.
Aim or justification: SOCIAL JUSTICE – those who have less in life should have more in law.
Article II, sec. 10 of the constitution

The state shall promote social justice in all phases of national development.
The state affirms labor as a primary social economic force. Therefore, it shall protect the rights of workers and
promote their welfare.
THREE FIELDS OF LABOR LAW (S-R-S)
1. Labor Standards Law –

• Sets out the minimum terms, conditions, and benefits of employment that employers must provide or comply with
and to which workers are entitled as a matter of legal right;
• The minimum requirements prescribed by existing laws, rules and regulations and other issuances relating to wages,
hours of work, cost of living allowances and other monetary and welfare benefits, including those set by occupational
safety and health hazards. (Section 7, Rule I, Rules on the Disposition of Labor Standards Cases – September 16, 1987)
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Example: wages and hours of work, on safety and health of employees, employment benefits, overtime pay
2. Labor Relations Law –

• Defines the status, rights, duties, as well as the institutional mechanism that govern the individual and collective
interactions between employers, employees, and their representatives
• Refers to the interactions between the employers and employees or their representatives and the mechanism by
which the employment standards are negotiated, adjusted and enforced.
• Marquez: process the terms, benefits and conditions to improve the same through collective bargaining or
negotiation.
Example: unionization, negotiation, dispute settlements
Distinction: Labor standards Law is the material or substance of labor law; Labor Relations Law is the mechanism or the
processes on enforcing the substance.
3. Labor Legislation or Social or Welfare Legislation –

• Law governing the employer-employee relation while the latter is not at work due to the hazard arising from
employment.
• Refers to a broader category of law that protects or promotes the welfare of society or segments of it in furtherance
of social justice.
• Intended to substitute income
Example: Social Security Law, Agrarian Reform Law, Law on Migrant Workers, or more recently, the New Tax Relief Law
Distinction between Labor Standards and Social Legislation: In LS, the employee is actually at work; In SL, the employee is
not at work or is unable to work.
OMNIBUS RULES AS AMENDED
• Have the force and effect of laws. Provided, however, that these rules and issuances will not expand the law or strip the law.
Otherwise, under the rules on statutory construction, these will be considered void.
• The DOLE is the lead agency in enforcing labor laws and it possesses rule-making power in the enforcement of the Code.
• But a rule or regulation that exceeds the department’s rule-making authority is void. The rule-making power is exceeded when
the implementing rule changes, wittingly or unwittingly, the content or meaning of the law which the rule aims to implement.
The implementing rule, on other words, must be subordinate to the law itself.
Example: Policy Instruction No. 54-88 (issued by former Sec. Franklin Drilon) has been declared void by the Supreme Court
because this has expanded Art. 83 of the Labor Code on Employment of Health Personnel by erroneously interpreting that
health employees are entitled to a “full weekly wage for 7 days” if they have completed the 40-hour/5-day workweek.
SUPREME COURT DECISIONS
Article 8 NCC: Judicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal system of the
Philippines.
NOTE: Decisions of administrative bodies like the NLRC do not form part of the legal system of the Philippines. Only SC decisions set
legal precedents.
BASIS OF ENACTING LABOR LAWS (P-S-P-D)
1. POLICE POWER
o Inherent power of the state to enact legislations that may interfere with personal liberty or property in order to promote
the general welfare of the people (General Welfare Clause)
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o Consists of imposition of restraint upon liberty or property and in order to foster the common good.
o General welfare clause deemed written into the employment contract.
o Power to regulate personal liberty or property rights.
o Labor Code contains several provisions that affect life and property.
NOTE: Having a job is a property right
Example:
Article 263 LC: (g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to
the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the
Commission for compulsory arbitration…
Reason: SOLE may compel the employer to admit the employees and the employees to return to their work.
2. SOCIAL JUSTICE
o The promotion of the welfare of all the people, the adoption by the government of measures calculated to insure
economic stability of all the component elements of society through the maintenance of proper economic and social
equilibrium in the interrelation of the members of the community, constitutionally through the adoption of measures
legally justifiable, or extra-constitutionally through the exercise of powers, underlying the exercise of all governments on
the time honored principle of “salus populi est suprema lex”. (Dr. Jose P. Laurel)
o The law is geared towards the concern of labor because our legislators realize that social and economic imbalance
between the employer and employee.
o Philippines is a signatory of ILO Convention (International Labor Organization)
o UN Declaration of Human Rights
o All doubts in the implementation and interpretation of the provisions of this Code, including its implementing
rules and regulations shall be resolved in favor of labor
Examples: Migrant worker’s act, retirement law, Art. Xix, sec. 19
3. PROTECTION TO LABOR CLAUSE

Article XIII, Section 3, 1987 Constitution. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
Reason: Employer stands in a higher footing than the employee because of economic dependence of the employee on the
employer and the greater supply of labor than the demand of it.
Example: Migrant Worker’s Act
4. DOCTRINE OF INCORPORATION
Article II, Section 2, Constitution: The Philippines renounces war as an instrument of national policy, adopts the
generally accepted principles of international law as part of the law of the land, and adheres to the policy of peace, equality,
justice, freedom, cooperation, and amity with all nations.
Cite at least 5 International Labor Organization (ILO) Conventions:

1. C87 Freedom of Association and Protection of the Right to Organize to Convention (1948)
2. C99 Minimum Wage Fixing Machinery Convention (1951)
3. C105 Abolition of Forced Labor Convention (1957)
4. C17 Workmen’s Compensation (1925)
5. C149 Tripartite Consultation Convention (1976)
LIMITATIONS IN THE ENACTMENT OF LABOR LAWS (P-E-N-D-O)
NON-IMPAIRMENT CLAUSE
Article III, Section 10. No law impairing the obligation of contracts shall be passed.
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• Congress could not pass laws which would impair the obligations of the parties, however, the same can pass laws to
regulate the obligations and contracts.
• May be impaired by the exercise of the state of police power.
EQUAL PROTECTION CLAUSE

Article III, Section 1. No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be
denied the equal protection of the laws.
• Individuals similarly situated must be treated equally under the3 law.

• Equality among equals
PROHIBITION AGAINST INVOLUNTARY SERVITUDE

Article III, Section 18(2). No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party
shall have been duly convicted. (e.g. anti-trafficking in persons act, forced labor, slavery)
DUE PROCESS CLAUSE

“Strike, but hear me first.”
OTHER CONSTITUTIONAL PROVISIONS
SOURCES OF LABOR LAWS - LABOR STANDARDS (R-O-L-J)
a) The Labor Code , PD 442 as amended

b) Judicial decisions
c) Rules and regulations issued by administrative agencies
d) Omnibus Rules as amended by DO No. 09, Series of 1997 & DO No. 40-03, Series of 2003, as amended by DO Nos. 40-A-03, 40-
B-03, 40-C-05
Rules and regulations have the force and effect of law, provided they do not expand the law or strip the law. Otherwise, under the
rules on statutory construction, these will be considered void.
SOURCES OF LABOR LAWS (LABOR RELATIONS)
PRIMARY (C-S-D)
a) Constitution
b) Statutes ( NCC, RPC, Special Laws)
c) Supreme court decisions
SECONDARY (D-R-O-R)
a) Decisions of foreign courts (where our labor statutes are based or patterned after statutes in foreign jurisdictions, decisions in
the high courts in those jurisdictions construing and interpreting should receive the careful attention of our courts in the
application of our laws)
b) Reviewers in labor laws/ textbooks
c) Opinions of labor department or agencies
d) Rules and regulations issued by DOLE ( department orders)
NOTE:
Labor laws do not only include PD 442 as amended but as well as decisions of the SC interpreting and applying the laws.
Included as well are rules and regulations issued by the appropriate government agencies (e.g. DOLE)
PROVISIONS ON THE EFFECTIVITY OF LABOR LAWS
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Article 5 Labor Code: Rules and regulations. - The Department of Labor and other government agencies charged with the
administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations.
Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general
circulation.
NOTE: Publication is indispensable. Rules and regulations are still valid even if no publication, however, it is unenforceable.
Article 2, NCC: Laws shall take effect after fifteen days following the completion of their publication either in the Official Gazette, or
in a newspaper of general circulation in the Philippines, unless it is otherwise provided. (As amended by EO 200).
E.O. 292 – Administrative Code of the Philippines
Sec. 18. When Laws Take Effect. - Laws shall take effect after fifteen (15) days following the completion of their publication in the
Official Gazette or in a newspaper of general circulation, unless it is otherwise provided.
Sec. 19. Prospectivity. - Laws shall have prospective effect unless the contrary is expressly provided.
Sec. 20. Interpretation of Laws and Administrative Issuances. - In the interpretation of a law or administrative issuance promulgated
in all the official languages, the English text shall control, unless otherwise specifically provided. In case of ambiguity, omission or
mistake, the other texts may be consulted.
Sec. 21. No Implied Revival of Repealed Law.- When a law which expressly repeals a prior law itself repealed, the law first repealed
shall not be thereby revived unless expressly so provided.
Sec. 22. Revival of Law Impliedly Repealed. - When a law which impliedly repeals a prior law is itself repealed, the prior law shall
thereby be revived, unless the repealing law provides otherwise.
Sec. 23. Ignorance of the Law. - Ignorance of the law excuses no one from compliance therewith.
Will not apply unless the people are informed through the required publication
RULES ON THE IMPLEMENTATION AND INTERPRETATION OF LABOR LAWS
Article 4, Labor Code. All doubts in the implementation and interpretation of the provisions of this Code, including its
implementing rules and regulations, shall be resolved in favor of labor.
Reasons: Employer stands in a higher footing than the employees and the State affirms labor as the primary social
economic force.
The policy is to apply the code to a greater number of employees to enable them to avail of the benefits under
the law, in line with the State’s desire to give maximum aid and protection to labor.
It is not always correct to think that the aim of the law is always to favor labor. The mandate under Art 4 is
simply to resolve doubt, if any, in favor of labor. If there is no doubt in implementing and interpreting the law,
labor will enjoy no built-in advantage and the law will have to be applied as it is.
The law in protecting the rights of the laborer, authorizes neither oppression nor self destruction of the
employer.
Court decisions adopt a liberal approach that favors the exercise of labor rights.
Article 1700, NCC (Relation Between Capital and Labor) The relation between capital and labor are not merely contractual.
They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are
subject to the special Lawson labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions,
hours of labor, and similar subjects.
Labor disputes also affect the state and the public at large if employees are engaged in strike or other concerted activities.
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PARTIES TO EMPLOYMENT CONTRACT

1. Employer
2. Employee
3. State
4. Public
Article 1701, NCC. Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the
public. (PRINCIPLE OF NON-OPPRESSION)
Article 1702, NCC. In case of doubt, all labor legislations and all labor contracts shall be construed in favor of the safety and
decent living of the laborer.
LABOR AND “CHATTEL”
“Labor is not a chattel nor a commodity, but human, and must be dealt with from the standpoint of human interest.”
(Asufrin vs. San Miguel Corporation, G.R. No. 156658. March 10, 2004)
TRIPARTISM
Tripartism refers to the representation of workers and employers sectors in decision and policy making bodies of the
government. Through tripartism, workers and employers on the one hand, representing their respective interests, and the
government on the other hand, representing the interest of the public, help shape labor, social and economic policies and
programs of the government.
Tripartism is in place in government agencies like the National Labor Relations Commission (NLRC), Employees Compensation
Commission (ECC), National Wages and Productivity Commission (NWPC), Technical Education and Skill Development Authority
(TESDA), Social Security System (SSS), Government Service Insurance System (GSIS), Philippine Overseas Employment
Administration (POEA), Overseas Workers’ Welfare Administration (OWWA) and Pag-ibig Home Development Funds (Pag-ibig).
[REPUBLIC ACT NO. 10395]

“AN ACT STRENGTHENING TRIPARTISM, AMENDING FOR THE PURPOSE ARTICLE 275 OF PRESIDENTIAL DECREE NO. 442,
AS AMENDED, OTHERWISE KNOWN AS THE “LABOR CODE OF THE PHILIPPINES”
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Article 275 of the Labor Code is hereby amended to read as follows:
“ART. 275. Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Councils. – (a) Tripartism in labor relations is hereby declared
a State policy. Towards this end, workers and employers shall, as far as practicable, be represented in decision and policy-making bodies
of the government.
“(b) The Secretary of Labor and Employment or his duly authorized representatives may from time to time call a national, regional, or
industrial tripartite conference of representatives of government, workers and employers, and other interest groups as the case may be,
for the consideration and adoption of voluntary codes of principles designed to promote industrial peace based on social justice or to
align labor movement relations with established priorities in economic and social development. In calling such conference, the Secretary
of Labor and Employment may consult with accredited representatives of workers and employers.
“(c) A National Tripartite Industrial Peace Council (NTIPC) shall be established, headed by the Secretary of Labor and Employment, with
twenty (20) representatives each from the labor and employers’ sectors to be designated by the President at regular intervals. For this
purpose, a sectoral nomination, selection, and recall process shall be established by the DOLE in consultation with the sectors observing
the ‘most representative’ organization criteria of ILO Convention No. 144.
“Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level shall also be established with representatives from
government, workers and employers to serve as a continuing forum for tripartite advisement and consultation in aid of streamlining the
role of government, empowering workers’ and employers’ organizations, enhancing their respective rights, attaining industrial peace, and
improving productivity.
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“The TIPCs shall have the following functions:

“(1) Monitor the full implementation and compliance of concerned sectors with the provisions of all tripartite instruments, including
international conventions and declarations, codes of conduct, and social accords;
“(2) Participate in national, regional or industry-specific tripartite conferences which the President or the Secretary of Labor and
Employment may call from time to time;
“(3) Review existing labor, economic and social policies and evaluate local and international developments affecting them;
“(4) Formulate, for submission to the President or to Congress, tripartite views, recommendations and proposals on labor, economic, and
social concerns, including the presentation of tripartite positions on relevant bills pending in Congress;
“(5) Advise the Secretary of Labor and Employment in the formulation or implementation of policies and legislation affecting labor and
employment;
“(6) Serve as a communication channel and a mechanism for undertaking joint programs among government, workers, employers and
their organizations toward enhancing labor-management relations; and
“(7) Adopt its own program of activities and rules, consistent with development objectives.
“All TIPCs shall be an integral part of the organizational structure of the NTIPC.
“The operations of all TIPCs shall be funded from the regular budget of the DOLE.”
SEC. 2. Implementing Rules and Regulations. – The Secretary of Labor and Employment shall promulgate the necessary rules and
regulations to implement the provisions of this Act.
SEC. 3. Repealing Clause. – Presidential Decree No. 442, as amended, otherwise known as the “Labor Code of the Philippines”, and all
other acts, laws, presidential issuances, rules and regulations inconsistent herewith are hereby repealed, amended or modified
accordingly.
SEC. 4. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least
two (2) newspapers of national circulation.
Reason: Relations between capital and labor are not merely contractual. They are so impressed with public interest that
representations from employer and employee in decision and policy-making bodies of the government are necessary. This is also in
affirmation of the role of the State as the guardian of the people’s rights and the constitutional provision on protection to labor.
Examples:
Creation of Regional Tripartite Wages and Productivity Board (RTWPB) which is composed of government, employer and
employee representatives.
Composition of NLRC, chairman is government appointed, remaining 2 commissioners from employer and employee
sectors.
Amendatory decree no. 850 (1975) adopted tripartism as a state policy

Tripartism is a representation of three sectors in policy-making bodies of the government
1. public or the government
2. employees
3. workers
Such kind of representation is not ordained, not even by the Constitution. What is provided for, for the private sector is
worker’s participation in policy and decision-making processes directly affecting their rights, benefits, and welfare.
BAR QUESTION (1998)
Interpretation of Labor Laws
Article 4 of the Labor Code provides that in case of doubt in the implementation and interpretation of the provisions of the Code and its
Implementing Rules and Regulations, the doubt shall be resolved in favor of labor. Article 1702 of the Civil Code also provides that in case
of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. Mica-Mara
company assails the validity of these statutes on the ground that they violate its constitutional right to equal protection of the laws. Is
the contention of Mica Mara Company tenable? Discuss fully.
SUGGESTED ANSWER:
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No, the Constitution provides that the state shall afford full protection to labor. Furthermore, the State affirms labor as a primary
economic force. It shall protect the rights of workers and promote their welfare.
ALTERNATIVE ANSWER:
a) No, because a law which promotes a constitutional mandate does not violate the equal protection clause. The constitutional
mandate is for the State to afford full protection to labor such that, when conflicting interests of labor and capital are to be weighed on
the scales of justice, the heavier influence of the latter should be counterbalanced by the sympathy the law should accord the
underprivileged.
b) The contention of Mica-Mara Company is not tenable. The constitutional right to equal protection of the laws is not violated by
reasonable classification. Thus, it is constitutionally possible to treat workers differently from employers.
The social justice principle embodied in the Constitution could be the basis for treating workers more favorably than employers, in the
implementation and interpretation of the provisions of the Labor Code and of its implementing rules and regulations.
BAR QUESTION (2006)

Interpretation of Labor Laws; Liberal Approach
What is the concept of liberal approach in interpreting the Labor Code and its Implementing Rules and Regulations in favor of labor?
(2.5%)
SUGGESTED ANSWER:
The workers' welfare should be the paramount consideration in interpreting the Labor Code and its Implementing Rules and Regulations.
This is rooted in the Constitutional mandate to afford full protection to labor. Article 4 of the Labor Code provides that "all doubts in the
implementation and interpretation of the provisions of the Labor Code including its implementing rules and regulations shall be resolved
in favor of labor" (PLOT v. NLRC, G.R No. 111933, July 23,1997). It underscores the policy of social justice to accommodate the interests of
the working class on the humane justification that those who have less in life shall have more in law (PAL v. Santos, G.R. No. 77875,
February 4, 1993).
BAR QUESTION (1997)

Labor Standard vs. Labor Relation
Differentiate labor standards law from labor relations law. Are the two mutually exclusive?
SUGGESTED ANSWER:
LABOR STANDARDS law is that labor law which prescribes terms and conditions of employment like Book in Book IV, Title I and Book VI of
the Labor Code. These Books of the Labor Code deal with working conditions, wages, working conditions for women, minors,
househelpers and homeworkers, medical and dental services, occupational health and safety, termination and retirement.
On the other hand, LABOR RELATIONS law is that labor law which regulates the relations between employers and workers like Book V of
the Labor Code which deals with labor organizations, collective bargaining, unfair labor practices and strikes and lockouts.
Labor standards laws and labor relations laws are not mutually exclusive; they are complement to each other. Thus, the law on strikes
and lockouts which is an example of labor relations law includes some provisions on the security of tenure of workers who go on strike or
who are locked out. These provisions are examples of labor standards law.
BAR QUESTION (2003)

Labor Standard vs. Labor Relation
How do the provisions of the law on labor relations interrelate, if at all, with the provisions pertaining to labor standards? 5%
SUGGESTED ANSWER:
LABOR RELATIONS law focuses its provisions on the collective aspects of employer-employee relationship. Its legal provisions deal
with employees organizing unions and how through these unions, employees are able to have collective bargaining with their employer.
On the other hand, LABOR STANDARDS law focuses on the terms and conditions of employment of employees as individual employees
or those legal provisions dealing with wages, hours of work and other terms and conditions of employment.
There may be instances when the provisions of labor relations law may interrelate with provisions of labor standards law. Thus, a CBA
which is dealt with in labor relations law may have provisions that improves upon the minimum terms and conditions of employment
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prescribed in labor standards law, like a CBA providing for a higher minimum wage, or for the computation of a higher overtime pay or the
payment of holiday pay not only for regular holidays but also for certain special holidays.
BAR QUESTION (1995)

Labor Statutes; Classification
1. What are the three (3) general classifications of labor statutes? Describe and give an example of each classification.
SUGGESTED ANSWER:
The three (3) general classifications of labor statutes are:
a) Labor Relations Laws;
b) Labor Standards Laws; and
c) Social Security Laws.
LABOR RELATIONS Laws are those labor statutes that deal with the relations of labor and management, like the laws on unions, collective
bargaining, unfair labor practices, strikes, lockouts and picketing.
LABOR STANDARDS are those labor statutes that prescribe standards relating to terms and conditions of employment for compliance by
employers, like the laws on hours of work, weekly rest periods, holiday pay, wages, and laws dealing with women, minors, house-helpers,
and industrial home-workers.
SOCIAL SECURITY Laws are those labor statutes that provide protection not only to a worker but also to members of his family in case of
loss of income or when there is need for medical care brought about by contingencies like sickness, disability, death, and old age.
Examples of social security laws are the Social Security Law, Revised Government Service Insurance Act, the Articles of the Labor Code on
Employees Compensation, the State Insurance Fund, and the National Health Insurance Act.
BAR QUESTIONS
Labor vs. Social Legislation
Is there any distinction between labor legislation and social legislation? Explain.
SUGGESTED ANSWER:
LABOR LEGISLATION is sometimes distinguished from social legislation by the former referring to labor statutes, like Labor Relations Law
and Labor Standards, and the latter to Social Security Laws. Labor legislation focuses on the rights of the worker in the workplace.
SOCIAL LEGISLATION is a broad term and may include not only laws that give social security protection, but also those that help the
worker secure housing and basic necessities. The Comprehensive Agrarian Reform law could also be considered a social legislation.
ALTERNATIVE ANSWER:
Yes. Labor Legislation is limited in scope, and deals basically with the rights and duties of employees and employers. Social Legislation is
more encompassing and includes such subjects as agrarian relations, housing and human settlement, protection of women and children,
etc. All labor laws are social legislation, but not all social legislation is labor law.
TOPIC 2: BASIC PRINCIPLES
CONSTITUTIONAL AND STATUTORY RIGHTS OF WORKERS IN GENERAL
ART XIII, Section 3, par 1
“The state shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and
equality of employment opportunities for all.”
IN RELATION TO LABOR STANDARDS (Just-Live-Human/H-J-L)

1. Humane conditions of work.( ART XIII, Sec 3 par 2)
2. Living wage.( ART XIII, Sec 3 par 2)
3. Just share in the fruits of production. .( ART XIII, Sec 3 par 4)
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IN RELATION TO LABOR RELATIONS (SupremeCourtPSP/S-C-P-S-P)

(ART XIII, Sec 3 par 2)
1. Self-organization
2. Collective bargaining and negotiations
3. Peaceful concerted activities including the right to strike in accordance with law.
4. Security of tenure
5. Participate in policy and decision making processes affecting their rights and benefits as maybe provided by law.
SPECIFIC RIGHTS OF WORKERS
Security of tenure
Workers cannot be dismissed without just and authorized causes
Workers shall be made regular after 6 months probation unless a different period is agreed upon by the worker and the
employee
Hours of work
Normal working hours of eight hours a day
Meal and rest period: meal break of less than one hour shall be considered compensable working time
Wage and wage related benefits

A. Minimum Wage
B. Holiday Pay – one day for every regular holiday even if unworked subject to certain conditions
C. Premium pay for work within 8 hours on:
Special Rest Day - 30% of the basic daily rate

Rest Day falling on a Special Day - plus 50%
Rest day falling on a Regular Holiday - plus 30% of the 200% of the basic daily rate
Overtime pay
Ordinary days: 25% of the basic hourly rate
Special/rest/holiday: 30% of the regular hourly rate on said days
Night shift differential pay

10% of the basic or regular rate between 10pm and 6am
Service incentive leave

5 days with pay per year after one year of service
Service charges
85 % (distribution to rank and file employees); 15% (losses, breakages, distribution to managerial employees)
Separation pay
½ month pay for every year of service for authorized causes of separation
13th month pay

1/12 of the total basic salary earned within the calendar year
Payment of wages
Shall be paid in cash, legal tender, at or near the place of work
May be made through a bank upon written petition of majority of the workers in establishments with 25 or more
employees and within one kilometer radius to a bank
Shall be made direct to the employees
Shall be given not less than once every 2 weeks or twice within a month at intervals not exceeding 16 days
Labor-only contracting is prohibited and the person acting as contractor is merely an agent of the employer
Preference of workers money claims over government and other creditors in case of bankruptcy or liquidation of business
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Safe and healthful conditions of work and welfare services

Proper illumination and ventilation, fire exits and extinguishers, occupational health personnel services, family welfare or
family planning services at the workplace)
Employment of Young Workers

Minimum employable age is 15 age
A worker below 15 should be directly under the sole responsibility of parents or guardians; work does not interfere with
child’s schooling and normal development
No person below eighteen can be employed in hazardous or deleterious undertaking
Self-organization and collective bargaining

Employees can form organizations such as union and welfare committees
An employee can join a union on the very first day of his employment
Collective Bargaining– a contract between workers and employers on terms and conditions of employment which are
OVER and ABOVE those mandated by law
Labor education through seminars, dialogues, and information, education and communication materials
Peaceful concerted activities in accordance with law
Participation an policy and decision-making processes affecting their rights and benefits
Free access to the courts and quasi-judicial bodies and speedy disposition of their cases
ECC benefits for work-related contingencies

medical benefits for sickness and injuries
disability benefits
rehabilitation
death and funeral
SSS Benefits
maternity
sickness
disability
retirement
death
ASPECTS OF LABOR STANDARDS
Meliorative Labor Standard - Intended to expand the flow of income or benefits to workingman that are required for a decent living.
• overtime pay
• premium pay
Protective Labor Standard - Intended to protect harsh and oppressive conditions of work that inimical to health, safety and well-
being of the workers.
• Protect the health and safety and the well-being of the workers.
• Prescribed hours of work
PURPOSE OF LABOR STANDARDS

Remedial and humanitarian
SOURCES OF LABOR STANDARDS
1. Employment Contract – employer hires an employee and gives a high salary, in effect the former provides the latter a labor
standard plus car, allowances and other benefits.
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2. Company Policies and Practices – as a company policy, provision of sack of rice, it is meliorative. Practices could be unwritten,
deliberately granted by employer for a long period of time, although it is not a policy but consistently and deliberately provided
to workers such as vacation with pay.
3. Administrative Order of DOLE - Also prescribes the terms and conditions of employment.
• Ex. Compressed workweek
4. Compulsory or Voluntary Arbitration – the award given to the party, it is another source of a labor standard
5. Collective Bargaining Agreement or CBA – can also be a source of Labor Standard because it provides terms and conditions of
employment prescribed by law.
6. Statutes - REASON: Principle of Non-diminution of benefits.
CONCEPT OF EMPLOYER-EMPLOYEE (LABOR STANDARDS)
Art 97b. “Employer” includes any person directly or indirectly in the interest of an employer in relation to an employee and shall
include the Government and all its branches, subdivision and instrumentalities, all government-owned or controlled corporations
and institutions, as well as non-profit private institutions, or organizations.(expanded definition)
Art 97c. “Employee” includes any individual employed by an employer.
CONCEPT OF EMPLOYER-EMPLOYEE (LABOR RELATIONS)
Art 212e. “Employer” includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any
labor organization or any of its officers or agents except when acting as employer.
Art 212f. “Employee” includes any person in the employ of the employer. The term shall not be limited to the employees of a
particular employer, unless this code so expressly states. It shall include any individual whose work has ceased as a result of or in
connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially
equivalent and regular employment.(expanded definition)
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CONCEPT OF EMPLOYER-EMPLOYEE RELATIONSHIP
It is in personam, involves the rendition of personal service by the employee, and partakes of master and servant relationship.
COMMENTS:
EMPLOYER
May be NATURAL OR JURIDICAL, a single proprietorship, a partnership or a corporation.
The Government is an employer within the meaning of the Labor Code in Labor Standards.
So, a government agency with an original charter contracts with a security agency to supply security guards, and this security agency
is unable to pay the wages of its guards.
Q: Is principal government agency considered jointly and severally liable with the security agency? Will Article 106-109, LC apply to
them? Can the guards file with the labor complaint with the nearest arbitration branch of the NLRC and sue both the security and
government agency?
A: YES, the Labor Code will govern. The government agency cannot move for the dismissal of the complaint for lack of jurisdiction
on the part of the Labor Arbiter and say that they are governed by the Civil Service Law Rules and Regulations. The government
agency contracted the services of an independent contractor, so they are considered principals. Therefore the LC will govern
regarding the monetary claims of the security guards.
A motion to dismiss filed by the government agency in the above-cited example will not prosper on the ground that the Labor
Arbiter has no jurisdiction, because the term “Employer” includes government agencies. It does not make any qualifications whether
it is one with or without original charter.
EMPLOYEE
An employee is always a NATURAL PERSON [may include Filipino citizens or foreigners
Example: Dumon Sari-sari Store (single proprietorship).
Q: Who is considered the employer?

A: Wilbert Dumon will be the employer, because the sari-sari store does not have a separate juridical personality. So, if Dumon is
made a defendant in a labor case, the caption will be - “Employee vs. Wilbert Dumon, doing business under the name and style of
Dumon Sari-sari Store.”
Hiring of employees
Foreigners – Art. 40-42, PD 442 applies

Filipino- there is none. The Constitution and the Labor Code encourage the employment of Filipinos.
Foreign Investment Code
Of those corporations owned by foreigners, if they want to employ alien as their employees, the following
requirements must be complied with:
1. Such domestic or foreign companies should obtain a permit form the DOLE ( Alien Employment Permit) at the
nearest regional office
2. There must be a determination of the non- availability of a person in the Philippines, who is competent, able,
willing at the time of application to perform the services for which the alien is desired.
The purpose of the law is to protect the Filipinos.
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FOUR-FOLD TEST (S-W-D-C)
1. Selection and engagement of employees

2. Payment of wages
3. Power of dismissal
4. Power of control over employee’s conduct and over the means and methods by which the work is to be
accomplished
Tabas vs. California Mfg Co.

GR 80680, 01/26/89
QUESTION OF LAW; QUESTION OF FACT
“The existence or absence of employer-employee relationship is A QUESTION OF LAW AND A QUESTION OF FACTS, each in its
defined sense.
The character of relationship between the parties is not what they call it in their contract but what the law calls it after examination
of the facts. The characterization by law prevails that in the contract. In this case the existence of employer-employee relationship
is not a matter of stipulation; it is a QUESTION OF LAW.
But the conclusion an employer-employee relationship exists depends upon the facts of each case. In one case an employer-
employee relationship may be found to be present, but in another case with different facts, it may be absent. In this sense, the
existence of an employer-employee relationship is a QUESTION OF FACT.”
Philippine Fuji Xerox Corp vs. NLRC

GR 111501, 05/05/96
CORE OR NON-CORE JOBS
“Depending on the applicability of the tests of employment, an employer-employee relationship may exist regardless of the nature
of the activities involved. In other words, the kind of work is not the definitive test of whether the worker is an employee or not”
Sevilla vs. CA
GR 44182-3, 04/15/88
TITLE AS WEAK INDICATORS
“The fact that one had been designated “branch manager” does not make such person an employee. Titles are weak indicators”
Encyclopedia Britanica vs. NLRC

GR 87098, 11/04/96
“Where a person who works for another does so more or less at his own pleasure and is not subject to definite hours or conditions
of work and in turn is compensated according to the result of his efforts and not the amount thereof, we should not find that the
relationship of employer-employee exists.”
Dy Keh Beng vs. ILMUP

GR 100665, 02/13/95
MERE EXISTENCE, NOT ACTUAL EXERCISE
“But it should be borne in mind that the control test calls MERELY FOR THE EXISTENCE of the right to control the manner of doing
the work, NOT THE ACTUAL EXERCISE of the right.”
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Insular Assurance Co. vs. NLRC

GR 119930, 03/12/98
“Exclusivity of service to the company, control of assignments and removal of agents, collection of premiums, furnishing of facilities
and materials as well as capital described as unit development fund are HALLMARKS OF A MANAGEMENT SYSTEM where there can
be no escaping the conclusion that one is an employee of the insurance company.”
Investment Planning Corp v. SSS

[ 11/18/67]
CONTROL TEST (most important element)

“That is, whether the employer controls or has reserved the right to control the employee not only as to the result of the work to be
done but also as to the means and methods by which the same is to be accomplished”
Domasig vs. NLRC

GR 118101 09/16/96
EVIDENCE OF EMPLOYMENT; ID, VOUCHERS, SSS REGISTRATION, MEMORANDUM
“Substantial evidence is sufficient as a basis for judgment on the existence of employer-employee relationship. No particular form
of evidence is required to prove the existence of such relationship.”
Flores vs. Nuestra

GR 66890 04/15/88
“That the respondent registered the petitioners with SSS is proof that the latter is the former’s employees. The coverage of SSS Law
is predicated on the existence of an employer-employee relationship”
“In a business establishment, an identification card is usually provided not only as a security measure but mainly to identify the
holder thereof as a bona fide of the firm that issues it. Together with the cash vouchers covering the petitioner’s salaries for the
months stated therein, these matters constitute substantial evidence adequate to support a conclusion that the petitioner was
indeed the employee of the respondent.”
Philippine FUJI XEROX CORP vs. NLRC

GR111501 03/05/96
“Appointment letters or employment contracts, payrolls, organization charts, personnel lists, as well as testimony of co-employees,
may also serve as evidence of employee status.”
Opulencia Ice Plant vs. NLRC

GR 98368 12/1593
ABSENCE OF NAME IN THE PAYROLL; TESTIMONIAL EVIDENCE
“If only documentary evidence would be required to show that relationship, no scheming employer would ever be brought before
the bar of justice, as no employer would wish to come out with any trace of the illegality he as authored considering that it should
take much weightier proof to invalidate a written instrument. Thus, as in this case where the employer-employee relationship
between petitioners and Esita was sufficiently proved by testimonial evidence, the absence of time sheet, time record or payroll has
become inconsequential.”
Labor Congress of the Philippines vs. NLRC

GR 123938 05/21/98
MODE OF COMPENSATION NOT A TEST OF EMPLOYMENT STATUS.
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“The presence or absence of employer-employee relationship is not determined by the basis of the employee’s compensation.
Indeed, employment relationship is one thing, pay determination is another. The existence of employment relationship depends on
whether the four-fold test is present or not.”
Zamudio vs. NLRC

GR 76723 03/25/90
ON “PAKIAO” BASIS
“The nature of their employment i.e “pakiao” basis, does not make petitioners independent contractors. Pakiao workers are
considered employees as long as the employer exercises control over the means by which such workers are to perform their work.
Considering that the petitioners did their work inside private respondent’s farm, the latter necessarily exercised control over the
work performed by petitioners.
The seasonal nature of petitioner’s work does not detract from the conclusion that employer-employee relationship exists. Seasonal
workers whose work is not merely for the duration of the season, but who are rehired every working season are considered regular
employees.”
Q: Why is it important to determine whether the relationship between the parties is that of employer and employee or that of
principal and independent contractor or of principal-agent?
A: To determine what laws will govern the rights and liabilities of the parties, and what tribunal will have jurisdiction over their
disputes.
Relationsh Governing Tribunal

ip Laws
Employer- Labor laws Labor
Employee tribunal
Principal- obligations Regular
Independe and courts
nt Contracts
Contractor [CC]
Principal- Civil Code Regular
Agent courts
(TWO-TIERED TEST) ECONOMIC REALITY TEST
Francisco v. NLRC
G.R. No. 170087; August 31, 2006
TWO-TIERED APPROACH
“The better approach would be to adopt a TWO-TIERED TEST involving (1) the putative employer’s power to control the employee
with respect to the means and methods by which the work is to be accomplished and (2) the underlying economic realities of the
activity or relationship.
This two-tiered test would provide us with a framework of analysis, which would take into consideration the totality of
circumstances surrounding the true relationship between the parties.
This is especially APPROPRIATE in this case where there is no written agreement or terms of reference to base the relationship on;
and due to the complexities of the relationship based on the various positions and responsibilities given to the worker over the
period of the latter’s employment.
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The determination of the relationship between employer and employee depends upon the circumstances of the whole economic
activity. The PROPER STANDARD OF ECONOMIC DEPENDENCE is whether the worker is dependent on the alleged employer for his
continued employment in that line of business.
Under the broader ECONOMIC REALITY TEST, the petitioner can likewise be said to be an employee of respondent corporation
because she had served the company for six years before her dismissal, receiving check vouchers indicating her salaries/ benefits,
13th month pay, bonuses and allowances as well as deductions and SSS contributions. It is therefore apparent that petitioner is
economically dependent on respondent for her continued employment in the latter’s line of business. “
Q: How to determine that a person is economically dependent?

A:
1. Number of years in the company
2. Reported to SSS, good indicator of treating him as an employee.
3. Registered in the payroll
2. Identification card
3. Company uniform
Determine the underlying economic realities of the activity or relationships.

The determination of the relationship between employer and employee depends upon the circumstances of the whole
economic activity
1. The (broad) extent to which the services performed are an integral part of the employer’s business.
2. The (limited) extent of the worker’s investment in the equipment and facilities
3. The nature (close supervision) and (high) degree of control exercised by the employer
4. The workers (limited) opportunities for profit and loss
5. The (small) amount of initiative, skill, judgment or foresight required for the success of the claimed independent
enterprise
6. The (high degree of) permanency and duration of the relationship between the worker and the employer
7. The degree of dependency of the worker upon the employer for his continued employment in that line of business.
Note: Unlike employee, independent contractor does not solely depend on the company for continued work as they can pursue
other jobs.
EMPLOYER-EMPLOYEE VS. PRINCIPAL-AGENT
Emploer-Employee Rel – governed by the Labor Code

Principal-Agent Rel – governed by the Civil Code
AGENT (Art. 1868, NCC). By the contract of agency, a person binds himself to render some service or to do something in
representation or on behalf of another with the consent or authority of the latter.
PRINCIPAL-AGENT RELATIONSHIP
Art 1868 NCC: By the contract of agency, a person binds himself to render some service or to do something in representation or
on behalf of another, with the consent or authority of the latter.
It is the principal who selects the agent. An agent is compensated under the contract of agency of services rendered. He is
disciplined by the principal as in the case of an employee because the agent is under the authority of the principal. The principal
controls the means and methods of the work of an agent. In this relationship, there is only one party. The agent is merely an
extension of the principal. They are regarded as one. So if there is a contractor relationship, it is not among three parties but is
between the principal/agent and the other party.
Thus, to make a distinction between a principal-agent and employer-employee, the four-fold test will not be used because the agent
is selected by the principal and is also compensated by the principal and most oftentimes, the principal substitutes his own
judgment for that of the agent.
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Note: To make a distinction between a principal-agent relationship and that of an employer-employee relationship, the four-fold
test will not be used because the 1) agent is selected by the principal 2) compensated by the principal 3) and most oftentimes, the
principal also substitutes his own judgment for that of the agent.
EMPLOYER-EMPLOYEE VS. PRINCIPAL-CONTRACTOR (DO NO. 9)
Carries a distinct and independent business and undertakes to perform the job, work, or service on its own account and under its
own responsibility, according to its own manner and method and free from the control and direction of the principal in all matters
connected with the performance of the work except as to the results thereof.
PRINCIPAL- INDIVIDUAL INDEPENDENT CONTRACTOR (FREE ARTISAN) RELATIONSHIP
The principal selects the contractor. The contractor is compensated for services rendered. The contractor is not under the discipline
of the principal. The distinction says that aside from engaging in the business separately distinct from the principal, the performed
job, work, or services is according to his own means and methods free from the control and direction of the principal except as to
the results thereof.
The definition says that aside from engaging in a business separately distinct from the principal, to perform job, work or service,
according to his own means and methods, free from control and direction of the principal except as to the results thereof.
Contractor may be Individual, Corporate Juridical Entity – no need of protection from labor code because they earn
better.
ARTICLE 1713, NCC
By contract for a piece of work, the contractor binds himself to execute a piece of work for the employer, in
consideration of a certain price or consideration. The contractor may either employ only his labor, skill, or also
furnishes the materials.
CHIEF CHARACTERISTICS OF AN EMPLOYEE
Economic Dependence by the Worker

Employee cannot bargain the terms and conditions of employment.
Medical doctors, lawyers, dentists, engineers in the exercise of their profession offer special services, the person engaging
their services cannot exercise control over the means and methods of accomplishing the work except the results thereof.
They are considered as independent contractors not needing protection from the Labor Code.
Subordination in Work Relation

Employer exercises control not only the means and methods but also the results thereof.
BAR QUESTION (1998)

Constitutional Provisions on Labor
What are the salient features of the protection to labor provision of the Constitution? [5%]
SUGGESTED ANSWER:
The salient features of the Protection to Labor provision of the Constitution (Article XIII. Section 3) are as follows:
1. Extent of Protection - Full protection to labor;
2. Coverage of Protection - Local and overseas, organized and unorganized;
3. Employment Policy - Full employment and equality of employment opportunities for all;
4. Guarantees
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4.1. Unionism and Method of Determination Conditions of Employment - Right of all workers to self-organization, collective bargaining
and negotiations.
4.2. Concerted Activities - Right to engage in peaceful concerted activities, including the right to strike in accordance with law.
4.3. Working Conditions - Right to security of tenure, humane conditions of work and a living wage.
4.4. Decision Making Processes - Right to participate hi policy and decision making processes affecting their rights and benefits as
way to provided by law.
5. Share in Fruits of production - Recognition of right of labor to its just share in fruits of production.
ANOTHER SUGGESTED ANSWER:
o The Constitution (In Article XIII, Section 3) provides that the State shall afford protection to labor, local and overseas, organized and
unorganized.
o The State shall afford protection to labor by promoting full employment and equality of employment opportunities for all.
o Workers are entitled to security of tenure, humane conditions of work and a living wage.
o The State shall guarantee the right of all workers to self organization, collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike, in accordance with law.
o Workers shall also participate in policy and decision making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary
modes in settling labor disputes, including conciliation, and shall enforce mutual compliance therewith to foster industrial peace.
o The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth.
BAR QUESTION (2006)

Labor Legislations; Purpose
What is the purpose of labor legislation? (2.5%)
SUGGESTED ANSWER:
Labor legislation is an exercise of police power. The purpose of labor legislation is to regulate the relations between employers and
employees respecting the terms and conditions of employment, either by providing for certain standards or for a legal framework within
which better terms and conditions of work could be negotiated through collective bargaining. It is intended to correct the injustices
inherent in employer-employee relationship.
BAR QUESTION (1994)

Labor Statutes; Principle of Solutio Indebiti; Not Applicable
Concepcion Textile Co. included the overtime pay, night-shift differential pay, and the like in the computation of its employees' 13th-
month pay. Subsequently, with the promulgation of the decision of the Supreme Court in the case of San Miguel Corporation vs. Inciong
(103 SCRA 139) holding that these other monetary claims should not be included in the computation of the 13thmonth pay, Concepcion
Textile Co. sought to recover under the principle of solutio indebiti its overpayment of its employees' 13th-month pay, by debiting against
future 13th-month payments whatever excess amounts it had previously made.
1) Is the Company's action tenable?
SUGGESTED ANSWER:
1) The Company's action is not tenable. The principle of salutio indebiti which is a civil law concept is not applicable in labor law. Thus,
solutio indebiti is not applicable to the instant case, (Davao Fruits Corporations vs. National Labor
Relations Commission, et at. 225 SCRA 562)
ALTERNATIVE ANSWERS:
a) The Company's action would be tenable if payment was done by mistake, In which case recovery can be done under the principle of
solutio indebiti. But if there was no mistake, the Company's action would be untenable because it would violate Article 100 of the Labor
Code which prohibits elimination or diminution of benefits.
BAR QUESTION (2006)

Labor; as Property Right
What property right is conferred upon an employee once there is an employer-employee relationship? Discuss briefly. (5%)
SUGGESTED ANSWER:
His employment is not merely a contractual relationship. One's employment is a property right within the mantle of constitutional
protection (Callanta v. Carnation Phil., No. L-70615, October 28, 1986). Hence, the employee enjoys security of tenure and he cannot be
dismissed except for cause and only after due process. The worker is thus protected and insulated against any arbitrary deprivation of his
job (Philips Semi Conductors [Phils.] v. Fadriquela, G.R. No. 141717, April 14, 2004).
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BAR QUESTION (2003)

Social Justice as Guiding Principles in Labor
May social justice as a guiding principle in labor law be so used by the courts in sympathy with the working man if it collides with the
equal protection clause of the Constitution? Explain. 5%
SUGGESTED ANSWER:
Yes. The State is bound under the Constitution to afford full protection to Labor; and when conflicting interests collide and they are to be
weighed on the scales of social justice, the law should accord more sympathy and compassion to the less privileged workingman.
(Fuentes v. NLRC. 266 SCRA 24 f 19971) However, it should be borne in mind that social justice ceases to be an effective instrument for
the "equalization of the social and economic forces" by the State when it is used to shield wrongdoing. (Corazon Jamer v. NLRC. 278 SCRA
632 F1 99711
No, social justice as a guiding principle in law may not be used by the courts if it collides with the equal protection clause of the
Constitution. Social justice is not a magic wand applicable in all circumstances. Not all labor cases will be automatically decided in favor of
the worker. Management has also rights which are entitled to recognition and protection; justice must be dispensed according to facts
and law; and social justice is not designed to destroy or oppress the employer.
Social justice as a guiding principle in Labor Law can be implemented side by side with the equal protection clause of the Constitution.
In implementation of the principle of social justice, the Constitution commands that the State shall afford protection to labor. Thus Labor
Law may be pro-labor in the sense that labor is given certain benefits not given to management. But this is not necessarily violative of the
equal protection clause of the Constitution because said clause allows reasonable classification.
BAR QUESTION (1999)

E-E Relationship; Corporation
FACTS: Teofilo Lacson was one of more than one hundred (100) employees who were terminated from employment due to the closure of
LBM Construction Corporation (LBM). LBM was a sister company of Lastimoso Construction, Inc. and RL Realty & Development
Corporation. All three (3) entities formed what came to be known as the Lastimoso Group of Companies. The three (3) corporations were
owned and controlled by members of the Lastimoso Family; their incorporators and directors all belonged to the Lastimoso family. The
three (3) corporations were engaged in the same line of business, under one management, and used the same equipment including
manpower services. Teofilo Lacson and his co-employees filed a complaint with the Labor Arbiter against LBM, RL Realty and Lastimoso
Construction to hold them jointly and severally liable for backwages and separation pay. Lastimoso Construction, Inc. and RL Realty &
Development Corporation interposed a Motion to Dismiss contending that they are Juridical entitles with distinct and separate
personalities from LBM Construction Corporation and therefore, they cannot be held jointly and severally liable for the money claims of
workers who are not their employees. Rule on the Motion to Dismiss. Should it be granted or denied? Why? (5%)
SUGGESTED ANSWER:
It is very clear that even if LBM Construction company, Lastimoso Construction Company, Inc. and RL Realty & Development Corporation
all belong to the Lastimoso family and are engaged in the same line of business under one management and used the same equipment
including manpower services, these corporations were separate juridical entities.
Thus, only the LBM Construction Corporation is the employer of Teofllo Lacson. The other corporation do not have any employer-
employee relations with Lacson.
The case in question does not include any fact that would justify piercing the veil of corporate fiction of the other corporations in order to
protect the rights of workers.
In a case (Concept Builders, Inc. v. NLRC. 257 SCRA 149), the Supreme Court ruled that it is a fundamental principle of corporation law
that a corporation is an entity separate and distinct from its stockholders and from other corporations to which it may be connected. But
this separate and distinct personality of a corporation is merely a fiction created by law for convenience and to promote justice. So, when
the notion of separate juridical personality is used to defeat public convenience, justify wrong, protect fraud or defend crime, or is used
as a device to defeat the labor laws, this separate personality of the corporation maybe disregarded or the veil of corporate fiction
pierced.
ALTERNATIVE ANSWER:
Motion to Dismiss should be denied. In the case at bar, the Labor Arbiter would be justified in piercing the corporate veil and considering
the three (3) corporations as one and the same entity as the employer of Teofilo Lacson because based on the facts "the three
corporations were owned and controlled by members of the Lstimoso family; their incorporators and directors all belonged to the
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Lastimoso family. The three (3) corporations were engaged in the same line of business, under one management and used the same
equipment including manpower services." The facts show that "the notion of legal entity is used to defeat public convenience, justify
wrong, protect fraud, or defend crime, the law will regard the corporation as an association of persons, or in the case of two
corporations, will merge them into one.
BAR QUESTION (2000)

E-E Relationship; Determined by Facts & Laws (2000)
Banco de Manila and the Ang Husay Janitorial and Pest Control Agency entered into an Independent Contractor Agreement with the
usual stipulations: specifically, the absence of employer-employee relationship, and the relief from liability clauses. Can the Bank, as a
client, and the Agency, as an independent contractor, stipulate that no employer-employee relationship exists between the Bank and the
employees of the Agency who may be assigned to work in the Bank? Reason. (5%)
SUGGESTED ANSWER:
They can so stipulate if the relationship is indeed Job contracting. Yet the stipulation cannot prevail over the facts and the laws. The
existence of employer-employee relationship is determined by facts and law and not by stipulation of the parties. (Insular Life Assurance
Co. Ltd. v. NLRC. 287 SCRA 476 (1998); Tabas v. California Manufacturing Co. Inc., 169 SCRA 497 (1989)].
ALTERNATIVE ANSWER:
Yes, they can stipulate provided that the contract of Independent contractor is valid in accordance with Art 106 of the Labor Code.
BAR QUESTION (1996)

E-E Relationship; Elements
1) When does an employer- employee relationship exist?
SUGGESTED ANSWER:
The Supreme Court, in a long line of decisions has consistently ruled that the following are the elements of an employer-employee
relationship:
A. Selection and engagement of the employee;
B. Payment of wages;
C. Power of discipline and dismissal; and
D. Power to control the employee's conduct as regards his employment.
ALTERNATIVE ANSWER;
An employer-employee relationship exists when a person (an employer) who carries on a business, trade, Industry, undertaking, or
activity of any kind uses the services of another person (an employee) who, receiving compensation, is under the employer's orders as
regards the employment.
BAR QUESTION (1999)

E-E Relationship; Security Guards; Floating Status
FACTS: Asia Security & Investigation Agency (ASIA) executed a one-year contract with the Baron Hotel (BARON) for the former to provide
the latter with twenty (20) security guards to safeguard the persons and belongings of hotel guests, among others. The security guards
filled up Baron application form and submitted the executed forms directly to the Security Department of Baron. The pay slips of the
security guards bore Baron's logo and showed that Baron deducted therefrom the amounts for SSS premiums, medicare contributions
and withholding taxes. Assignments of security guards, who should be on duty or on call, promotions, suspensions, dismissals and award
citations for meritorious services were all done upon approval by Baron's chief Security officer.
After the expiration of the contract with Asia, Baron did not renew the same and instead executed another contract for security services
with another agency. Asia placed the affected security guards on "floating status" on "no work no pay" basis. Having been displaced from
work, the Asia security guards filed a case against the Baron Hotel for illegal dismissal, overtime pay, minimum wage differentials,
vacation leave and sick leave benefits, and 13th month pay.
Baron Hotel denied liability alleging that Asia is the employer of the security guards and therefore, their complaint for illegal dismissal
and payment of money claims should be directed against Asia. Nevertheless, Baron filed a Third Party Complaint against Asia.
1. Is there an employer-employee relationship between the Baron Hotel, on one hand, and the Asia security guards, on the other hand?
Explain briefly, (3%)
SUGGESTED ANSWER:
As a general rule, the security guards of a private security guard agency are the employees of the latter and not of the establishment that
has entered into a contract with the private security guard agency for security services. But under the facts in the question, Baron Hotel
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appear to have hired the security guards, to have paid their wages, to have the power to promote, suspend or dismiss the security guards
and the power of control over them, namely, the security guards were under orders of Baron Hotel as regard their employment. Because
of the above-mentioned circumstances, Baron Hotel is the employer of the security guards.
2. Assuming that ASIA is the employer, is the act of ASIA in placing the security guards on "floating status" lawful? Why? (2%)
SUGGESTED ANSWER:
It is lawful for a private security guard agency to place its security guard on a "floating status" if it has no assignment to give to said
security guards. But if the security guards are placed on a "floating status" for more than six (6) months, the security guards may consider
themselves as having been dismissed.
BAR QUESTION (2003)

E-E Relationship; Self-Employed
Pablo was a farm-hand in a plantation owned by ABC & Co., working approximately 6 days a week for a good 15 years. Upon Pablo's
death, his widow filed a claim for burial grant and pension benefits with the Social Security System (SSS). The claim was denied on the
ground that Pablo had not been a registered member-employee.
Pablo's widow filed a petition before the SSS asking that ABC & Co. be directed to pay the premium contributions of Pablo and that his
name be reported for SSS coverage. ABC & Co. countered that Pablo was hired to plow, harrow and burrow, using his own carabao and
other implements and following his own schedule of work hours, without any supervision from the company. If proven, would this factual
setting advanced by ABC & Co. be a valid defense against the petition?
SUGGESTED ANSWER:
ABC & Co. has a valid defense. Pablo should be an employee of ABC & Co. to be under the compulsory coverage of the SSS. To be an
employee, Pablo should be under the control of ABC & Co. as regards his employment. But the facts show that he was not under the
control of ABC & Co. as regards his employment. Among others, he had his own schedule of work hours, without any supervision from
the company. Thus, he is an independent contractor and not an employee. An independent contractor is not under the compulsory
coverage of the SSS. He maybe covered as a self-employed person. But then as such, ABC & Co. has no legal obligation to report Pablo for
coverage under the SSS because ABC & Co. is not Pablo's employer.
It is not a valid defense, for Pablo could be considered an employee of ABC & Co. The elements of hiring, payment of wages, power to
dismiss and power to control are presumed from the fact that Pablo is working 6 days a week, for 15 years now. Pablo's use of his plow,
harrow, burrow, carabao and other implements and his having his own schedule of work hours without any supervision from the
company do not erase the element of control on the part of ABC & Co. because under the "control test", it is enough that the employer's
right to control exists. It is not necessary that the same be exercised by the employer, it is enough that such right to control exists.
(Religious of the Virgin Mary v. NLRC. 316 SCRA 614, 629 (1999)
BAR QUESTION (2004)

E-E Relationship; Workers paid by Results
B. TRX, a local shipping firm, maintains a fleet of motorized boats plying the island barangays of AP, a coastal town. At day’s end the
boat operators/crew members turn over to the boat owner their cash collections from cargo fees and passenger fares, less the expenses
for diesel fuel, food, landing fees and spare parts. Fifty percent (50%) of the monthly income or earnings derived from the operations of
the boats are given to the boatmen by way of compensation. Deducted from the individual shares of the boatmen are their cash advance
and peso value of their absences, if any. Are these boatmen entitled to overtime pay, holiday pay, and 13th month pay? (5%)
SUGGESTED ANSWER:
If the boatmen are considered employees, like jeepney drivers paid on a boundary system, the boatmen are not entitled to overtime and
holiday pay because they are workers who are paid by results. Said workers, under the Labor Code are not entitled, among others, to
overtime pay and holiday pay. In accordance with the Rules and Regulations implementing the 13th month pay law, however, the
boatmen are entitled to the 13th month pay. Workers who are paid by results are to be paid their 13th month pay.
No. The arrangement between the boat owner and the boat operators/crew members partook of the nature of a joint venture. The
boatmen did not receive fixed compensation as they shared only in the cash collections from cargo fees and passenger fares, less
expenses for fuel, food, landing fees and spare parts. It appears that there was neither right of control nor actual exercise of such right on
the part of the boat owner over the boatmen. It is clear that there was no employer-employee relationship between the boat owner and
the boatmen. As such, these boatmen are not entitled to overtime pay, holiday pay and 13th month pay.
BAR QUESTION (2005)

Employment; Radio-TV Show Host; Expiration of Term
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(1) Malyn Vartan is a well-known radio-TV show host. She signed a contract with XYZ Entertainment Network to host a one-hour daily talk
show where she interviews various celebrities on topical subjects that she herself selects. She was paid a monthly remuneration of
P300,000.00. The program had been airing for almost two years when sponsors' advertising revenues dwindled, constraining the network
to cancel the show upon the expiration of its latest contract with Ms. Vartan. The talk-show host protested the discontinuance of her
monthly talent fee, claiming that it was tantamount to her illegal dismissal from the network since she has already attained the status of
a regular employee. (6%)
(a) As the network's legal counsel, how would you justify its decision to cancel Ms. Vartan's program which in effect terminated her
services in the process?
ALTERNATIVE ANSWER:
As the network's legal counsel, I will argue that Ms. Vartan is under contract on a fixed term employment basis. The network cancelled
the show "upon the expiration of its latest contract with Ms. Vartan." Hence, this does not involve dismissal but an expiration of term.
(Felix v. Buenaseda, G.R. No. 109704, January 17,1995; St. Theresa's School of Novaliches Foundation v. NLRC, G.R. No. 122955, April 15,
1998)
ALTERNATIVE ANSWER:
As the network's counsel, there was no termination of her services, only the expiration of her contract, being an independent contractor.
(Sonza v. ABS-CBN, G.R. No. 138051, June 10, 2004)
(b) As counsel for the talk-show host, how would you argue your case?
ALTERNATIVE ANSWER.
As a radio-TV talk show host, Ms. Vartan is performing an activity which is necessary and desirable in the usual trade or business of XYZ
Entertainment Network. Hence, Ms. Vartan is a regular employee and cannot be terminated except for cause and only after due process.
The cancellation of the program is tantamount to closure but XYZ Entertainment Network did not comply with the procedural
requirements of law, i.e., 30 days notice to Ms. Vartan and to DOLE prior to the intended date of termination.
ALTERNATIVE ANSWER:
As counsel for the talk show host, I will argue that she is a regular employee. First, she performs job that is necessary and desirable to the
nature of the business of the employer; Second, she serves for at least one (1) year which is an indication of regular employment.
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TOPIC 3: THE RIGHT TO HIRE
NATURE: RIGHT OR PREROGATIVE?
Strictly speaking, the employer has no right to hire a person as his employee. The matter of selecting a person as one’s employee is
more appropriately described as a prerogative. It is not a right in which you can go to court and enforce the right to hire a person,
otherwise it will violate the constitutional provision against involuntary servitude, if one is compelled to be another’s employee. No
person can be compelled against his will to do an act whether legal or illegal. Thus, an employer cannot go to court and get an
injunction to compel a person to become his employee. If at all, the employee can only exercise the prerogative to invite that
person and to hire him if he so desires. In that sense, the right to hire is essentially a management prerogative.
MANAGEMENT PREROGATIVE
It is an act of the employer according to his own judgment or discretion to regulate his business. This includes hiring, transfer,
dismissal, etc.
SMC v. Ople
“Except as limited by Special Laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of
employment, including hiring, work assignments, working methods, time, place and manner or work, tools to be used, processes to
be followed, supervision of workers, working regulations, transfer of employees, work supervision, layoff of workers and the
discipline, dismissal and recall of workers.”(ONE RIGHT OF AN EMPLOYER)
LIMITATIONS ON MANAGEMENT PREROGATIVE
Law
Contract or CBA
Principles of fair play and justice
RIGHTS OF MANAGEMENT
Right to ROI
Right to prescribe rules
Right to select employees
Transfer or discharge of employees
EXERCISE OF RIGHT/PREROGATIVE: ABSOLUTE?
The exercise of the right or prerogative to hire is NOT ABSOLUTE. It is regulated by law.
LIMITATIONS:
1. Special Laws
2. Contract
3. Basic principles of equity and fair play
LEGAL LIMITATIONS/PROHIBITIONS PRIOR TO HIRING
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A. UNDER THE LABOR CODE:
1. Art. 136. Prohibition Against Stipulation of Marriage

It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a
woman employee shall not get married or to stipulate expressly or tacitly that upon getting married, a woman
employee shall be deemed separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage.
2. Art.139. Minimum Employable Age

a) No child below fifteen (15) years of age shall be employed, except when he works directly under the sole
responsibility of his parents or guardian, and his employment does not in any way interfere with his schooling.
b) Any person between fifteen (15) and eighteen (18) yeas of age may be employed for such number of hours and
such periods of the day as determined by the Secretary of Labor and Employment in appropriate regulations.
c) The foregoing provisions shall in no case allow the employment of a person below eighteen (18) years of age in
an undertaking which is hazardous or deleterious in nature as determined by the Sec. of Labor.
3. Art. 248. Unfair Labor Practices of Employers

It shall be unlawful for an employer to commit any of the following unfair labor practice:
(b) To require as a condition of employment that a person or an employee shall not join a labor organization or shall
withdraw from one to which he belongs
B. UNDER SPECIAL LAWS
RA 7610, as amended by RA 7658 & RA 9231 (Worst forms of Child Labor)
REPUBLIC ACT NO. 7658: PROHIBITING THE EMPLOYMENT OF CHILDREN BELOW 15 YEARS OF AGE IN
PUBLIC AND PRIVATE UNDERTAKINGS
Section 1. Section 12, Article VIII of R. A. No. 7610 otherwise known as the "Special Protection of Children Against
Child Abuse, Exploitation and Discrimination Act" is hereby amended to read as follows:
Sec. 12. Employment of Children. — Children below fifteen (15) years of age shall not be employed EXCEPT:
(1) When a child works directly under the sole responsibility of his parents or legal guardian and where only
members of the employer's family are employed: Provided, however, That his employment neither
endangers his life, safety, health and morals, nor impairs his normal development; Provided, further, That
the parent or legal guardian shall provide the said minor child with the prescribed primary and/or secondary
education; or
(2) Where a child's employment or participation in public entertainment or information through cinema,
theater, radio or television is essential: Provided, The employment contract is concluded by the child's
parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval
of the Department of Labor and Employment: and Provided, That the following requirements in all
instances are strictly complied with:
(a) The employer shall ensure the protection, health, safety, morals and normal development of the
child;
(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking
into account the system and level of remuneration, and the duration and arrangement of working
time; and
(c) The employer shall formulate and implement, subject to the approval and supervision of
competent authorities, a continuing program for training and skills acquisition of the child.
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In the above exceptional cases where any such child may be employed, the employer shall first secure,
before engaging such child, a work permit from the Department of Labor and Employment which shall ensure
observance of the above requirements.
The Department of Labor and Employment shall promulgate rules and regulations necessary for the
effective implementation of this Section.
REPUBLIC ACT NO. 7610

Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. – No person shall employ child models
in all commercials or advertisements promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts
and violence.
REPUBLIC ACT NO. 9231: THE ELIMINATION OF THE WORST FORMS OF CHILD LABOR AND AFFORDING
STRONGER PROTECTION FOR THE WORKING CHILD
Sec. 12. Employment of Children. — Children below fifteen (15) years of age shall not be employed except:
1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only
members of his/her family are employed: provided, however, that his/her employment neither endangers
his/her life, safety, health, and morals, nor impairs his/her normal development: provided, further, that the
parent or legal guardian shall provide the said child with the prescribed primary and/or secondary education; or
2) Where a child's employment or participation in public entertainment or information through cinema, theater,
radio, television or other forms of media is essential: provided, that the employment contract is concluded by
the child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the
approval of the Department of Labor and Employment: provided, further, that the following requirements in all
instances are strictly complied with:
(a) The employer shall ensure the protection, health, safety, morals and normal development of the child;
(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into
account the system and level of remuneration, and the duration and arrangement of working time; and
(c) The employer shall formulate and implement, subject to the approval and supervision of competent
authorities, a continuing program for training and skills acquisition of the child.
In the above-exceptional cases where any such child may be employed, the employer shall first secure, before
engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of
the above requirements.
For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age.
Sec. 12-A. Hours of Work of a Working Child. — Under the exceptions provided in Sec. 12 of this Act, as amended:
(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week:
provided, that the work shall not be more than four (4) hours at any given day;
(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8)
hours a day, and in no case beyond forty (40) hours a week;
(3) No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the evening and six
o'clock in the morning of the following day and no child fifteen (15) years of age but below eighteen (18) shall be
allowed to work between ten o'clock in the evening and six o'clock in the morning of the following day.
Sec. 12-B. Ownership, Usage and Administration of the Working Child's Income. — The wages, salaries, earnings and
other income of the working child shall belong to him/her in ownership and shall be set aside primarily for his/her
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support, education or skills acquisition and secondarily to the collective needs of the family: provided, that not more
than twenty percent (20%) of the child's income may be used for the collective needs of the family.
The income of the working child and/or the property acquired through the work of the child shall be administered by
both parents. In the absence or incapacity of either of the parents, the other parent shall administer the same. In case
both parents are absent or incapacitated, the order of preference on parental authority as provided for under the
Family Code shall apply.
Sec. 12-C. Trust Fund to Preserve Part of the Working Child's Income. — The parent or legal guardian of a working
child below eighteen (18) years of age shall set up a trust fund for at least thirty percent (30%) of the earnings of the
child whose wages and salaries from work and other income amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render a semi-annual accounting of the fund to the Department of
Labor and Employment, in compliance with the provisions of this Act. The child shall have full control over the trust
fund upon reaching the age of majority.
Sec. 12-D. Prohibition Against Worst Forms of Child Labor. — No child shall be engaged in the worst forms of child
labor. The phrase "worst forms of child labor" shall refer to any of the following:
(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar
to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or
compulsory labor, including recruitment of children for use in armed conflict; or
(2) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography
or for pornographic performances; or
(3) The use, procuring or offering of a child for illegal or illicit activities, including the production and
trafficking of dangerous drugs and volatile substances prohibited under existing laws; or
(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be
harmful to the health, safety or morals of children, such that it:
(a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
(b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful
psychologically or may prejudice morals; or
(c) Is performed underground, underwater or at dangerous heights; or
(d) Involves the use of dangerous machinery, equipment and tools such as power-driven or
explosive power-actuated tools; or
(e) Exposes the child to physical danger such as, but not limited to the dangerous feats of
balancing, physical strength or contortion, or which requires the manual transport of heavy
loads; or
(f) Is performed in an unhealthy environment exposing the child to hazardous working
conditions, elements, substances, co-agents or processes involving ionizing, radiation, fire,
flammable substances, noxious components and the like, or to extreme temperatures, noise
levels, or vibrations; or
(g) Is performed under particularly difficult conditions; or
(h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans, nematodes
and other parasites; or
(i) Involves the manufacture or handling of explosives and other pyrotechnic products.
Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. — No child shall be employed as a
model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its
byproducts, gambling or any form of violence or pornography.
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RULES AND REGULATIONS IMPLEMENTING RA 9231, AMENDING R.A. 7610, AS AMENDED

(DO NO. 65-04, SERIES OF 2004)
SECTION 3. Definition of Terms – As used in these Rules, the term:

(a) “Child” refers to any person under 18 years of age.
(b) “Child labor” refers to any work or economic activity performed by a child that subjects him/her to any form of
exploitation or is harmful to his/her health and safety or physical, mental or psychosocial development.
(c) “Working Child” refers to any child engaged as follows:
i. when the child is below eighteen (18) years of age, in work or economic activity that is not child labor as
defined in the immediately preceding sub-paragraph, and
ii. when the child below fifteen (15) years of age, (i) in work where he/she is directly under the
responsibility of his/her parents or legal guardian and where only members of the child’s family are
employed; or (ii)in public entertainment or information.
xxxxxx
(g) “Employer” refers to any person, whether natural or juridical who, whether for valuable consideration or not,
directly or indirectly procures, uses, avails itself of, contracts out or otherwise derives benefit from the work or
services of a child in any occupation, undertaking, project or activity, whether for profit or not. It includes any
person acting in the interest of the employer.
xxxxxx
(j) “Work permit” refers to the permit secured by the employer, parent or guardian from the Department for any child
below 15 years of age in any work allowed under Republic Act No. 9231.
(k) “Hours of work” include (1) all time during which a child is required to be at a prescribed workplace, and (2) all time
during which a child is suffered or permitted to work. Rest periods of short duration during working hours shall be
counted as hours worked.
(l) “Workplace” refers to the office, premises or worksite where a child is temporarily or habitually assigned. Where
there is no fixed or definite workplace, the term shall include the place where the child actually performs work to
render service or to take an assignment, to include households employing children.
(m) “Public entertainment or information” refers to artistic, literary, and cultural performances for television show,
radio program, cinema or film, theater, commercial advertisement, public relations activities or campaigns, print
materials, internet, and other media.
(q) “Forced labor and slavery” refers to the extraction of work or services from any person by means of enticement,
violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of authority or
moral ascendancy, debt bondage or deception.
(r) “Child pornography” refers to any representation of a child engaged in real or simulated explicit sexual activities or
any representation of the sexual parts of a child for primarily sexual purposes.
Chapter 2 – Prohibition on the Employment of Children

SECTION 4. General Prohibition – Except as otherwise provided in these Rules, no child below 15 years of age shall be employed,
permitted or suffered to work, in any public or private establishment.
SECTION 5. Prohibition on the Employment of Children in Worst Forms of Child Labor – No child shall be engaged in the worst forms
of child labor. The phrase “worst forms of child labor” shall refer to any of the following:
(a) All forms of slavery, as defined under the “Anti-trafficking in Persons Act of 2003”, or practices similar to slavery such as sale
and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including recruitment children for use
in armed conflict.
(b) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic
performances;
(c) The use, procuring or offering of a child for illegal or illicit activities, including the production or trafficking of dangerous drugs
or volatile substances prohibited under existing laws; or
(d) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health,
safety or morals of children, such that it:
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i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may
prejudice morals; or
iii. Is performed underground, underwater or at dangerous heights; or
iv. Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated
tools; or
v. Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength
or contortion, or which requires the manual transport of heavy loads; or
vi. Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements,
substances, co-agents or processes involving ionizing, radiation, fire, flammable substances, noxious components
and the like, or to extreme temperatures, noise levels or vibrations; or
vii. Is performed under particularly difficult conditions; or
viii. Exposes the child to biological agents such as bacteria, fungi, viruses, protozoa, nematodes and other parasites; or
ix. Involves the manufacture or handling of explosives and other pyrotechnic products.
SECTION 6. Prohibition on the Employment of Children in Certain Advertisements – No child below 18 years of age shall be employed
as a model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts,
gambling or any form of violence or pornography.
Chapter 3 – Exceptions to the Prohibition

SECTION 7. Exceptions and Conditions – The following shall be the only exceptions to the prohibition on the employment of a child
below 15 year of age:
(a) When the child works under the sole responsibility of his/her parents or guardian, provided that only members of the child’s
family are employed.
(b) When the child’s employment or participation in public entertainment or information is essential, regardless of the extent of
the child’s role.
Such employment shall be strictly under the following conditions:
i. The total number of hours worked shall be in accordance with Section 15 of these Rules;
ii. The employment does not endanger the child’s life, safety, health and morals, nor impair the child’s normal
development;
iii. The child is provided with at least the mandatory elementary or secondary education; and
iv. The employer secures a work permit for the child in accordance with Section 8-12 of these Rules.
Chapter 4 – Requirements to Avail of Exception To Employment Prohibition

SECTION 8. Work Permit – Except as provided is Section 13, no child below 15 years of age shall be allowed to commence work
without a work permit. An employer must first secure a work permit from the Regional Office of the Department having jurisdiction
over the workplace of the child. In cases where the work is done in more than one workplace falling under the jurisdiction of more
than one Regional Office, the application shall be made with the Regional Office having jurisdiction over the principal office of the
employer. However, at least two days prior to the performance of the work, the employer shall inform the Regional Office having
jurisdiction over the workplace of the activities to be under taken involving the child.
Chapter 6 – Working Child’s Income

SECTION 16. Ownership and Use of the Working Child’s Income – The wages, salaries, earnings and other income of the working
child belong to him/her in ownership and shall be set aside primarily for his/her support, education, or skills acquisition and
secondarily to the collective needs of the family: Provided, That not more than twenty percent (20%) of the child’s income may be
used for the collective needs of the family.
SECTION 22. Grounds for Suspension and Cancellation of Work Permit – The Regional Director shall suspend or cancel the work
permit issued to a working child under the following instances:
(a) If there is fraud or misrepresentation in the application for work permit or any of its supporting documents;
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(b) If the terms and conditions set forth in the child’s employment contract and/or employer’s undertaking have been violated;
(c) If the employer fails to institute measures to ensure the protection, health, safety, morals, and normal development of the
child as required in Section 7 (b) ii;
(d) If the employer fails to formulate and implement a program for the education, training and skills acquisition of the child; or
(e) If a child has been deprived access to formal, non-formal or alternative learning systems of education.
RA 7877 (ANTI-SEXUAL HARASSMENT ACT)
Sec. 3. Work, Education or Training-related Sexual Harassment Defined. – Work, education or training-related sexual
harassment is committed by an employee, manager, supervisor, agent of the employer, teacher, instructor, professor,
coach, trainer, or any other person who, having authority, influence or moral ascendancy over another in a work or
training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of
whether the demand, request or requirement for submission is accepted by the object of said Act.
(a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or
continued employment of said individual, or in granting said individual favorable compensation,
terms, conditions, promotions, or privileges; or the refusal to grant the sexual favor results in
limiting, segregating or classifying the employee which in a way would discriminate, deprive or
diminish employment opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employee’s rights or privileges under existing labor laws; or
(3) The above acts would result in an intimidating, hostile, or offensive environment for the
employee.
RA 8504 (PHILIPPINE AIDS PREVENTION AND CONTROL ACT OF 1998)
SECTION 35. Discrimination in the Workplace - Discrimination in any from pre-employment to post-employment, including
hiring, promotion or assignment, based on the actual, perceived or suspected HIV status of an individual is prohibited.
Termination from work on the sole basis of actual, perceived or suspected HIV status is deemed unlawful.
RA 9208 (ANTI-TRAFFICKING IN PERSONS ACT OF 2003; FORCED LABOR)
Forced Labor and Slavery - refer to the extraction of work or services from any person by means of enticement, violence,
intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of authority or moral ascendancy,
debt-bondage or deception.
Sec. 4. Acts of Trafficking in Persons. - It shall be unlawful for any person, natural or juridical, to commit any of the
following acts:
(a) To recruit, transport, transfer; harbor, provide, or receive a person by any means, including those done under
the pretext of domestic or overseas employment or training or apprenticeship, for the purpose of prostitution,
pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt bondage;
(b) To introduce or match for money, profit, or material, economic or other consideration, any person or, as
provided for under Republic Act No. 6955, any Filipino woman to a foreign national, for marriage for the purpose
of acquiring, buying, offering, selling or trading him/her to engage in prostitution, pornography, sexual
exploitation, forced labor, slavery, involuntary servitude or debt bondage;
SEC.32, TITLE 3, CHAP.1, RA 7277 (MAGNA CARTA FOR DISABLED PERSON)
Discrimination on Employment. No entity, public or private, should discriminate against qualified disabled person in terms
of job application procedures, hiring, promotion, discharge, compensation and other benefits.
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SEC.55.4, RA 8791 (GEN. BANKING LAWS OF 2000)
No bank shall employ casual or non-regular personnel or too lengthy probationary personnel in the conduct of its business
involving deposits.
RA 10354, Sec 23 c (RESPONSIBLE PARENTHOOD & REPRODUCTIVE HEALTH ACT OF 2012)
Sec 23: Prohibited Acts, (c) Any employer who shall suggest, require, unduly influence or cause any applicant for employment or an
employee to submit himself/herself to sterilization, use any modern methods of family planning, or not use such methods as a condition
for employment, continued employment, promotion or the provision of employment benefits. Further, pregnancy or the number of
children shall not be a ground for non-hiring or termination from employment;
OTHERS:
ART. 1703, CIVIL CODE (INVOLUNTARY SERVITUDE)
Art. 1703. No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall be valid.
C. UNDER REVISED PENAL CODE
Art. 272. Slavery. — The penalty of prision mayor and a fine of not exceeding 10,000 pesos shall be imposed upon anyone
who shall purchase, sell, kidnap or detain a human being for the purpose of enslaving him.
If the crime be committed for the purpose of assigning the offended party to some immoral traffic, the penalty shall be
imposed in its maximum period.
Art. 273. Exploitation of child labor. — The penalty of prision correccional in its minimum and medium periods and a fine
not exceeding 500 pesos shall be imposed upon anyone who, under the pretext of reimbursing himself of a debt incurred
by an ascendant, guardian or person entrusted with the custody of a minor, shall, against the latter's will, retain him in his
service.
Art. 274. Services rendered under compulsion in payment of debt. — The penalty of arresto mayor in its maximum period
to prision correccional in its minimum period shall be imposed upon any person who, in order to require or enforce the
payment of a debt, shall compel the debtor to work for him, against his will, as household servant or farm laborer.
Art. 278. Exploitation of minors. — The penalty of prision correccional in its minimum and medium periods and a fine not
exceeding 500 pesos shall be imposed upon:
Any person who shall cause any boy or girl under sixteen years of age to perform any dangerous feat of
balancing, physical strength, or contortion;
Any person who, being an acrobat, gymnast, rope-walker, diver, wild-animal tamer or circus manager or
engaged in a similar calling, shall employ in exhibitions of these kinds children under sixteen years of age
who are not his children or descendants;
Any person engaged in any of the callings enumerated in the next paragraph preceding who shall employ
any descendant of his under twelve years of age in such dangerous exhibitions;
Any ascendant, guardian, teacher or person entrusted in any capacity with the care of a child under sixteen
years of age, who shall deliver such child gratuitously to any person following any of the callings
enumerated in paragraph 2 hereof, or to any habitual vagrant or beggar.
If the delivery shall have been made in consideration of any price, compensation, or promise, the penalty
shall in every case be imposed in its maximum period.
In either case, the guardian or curator convicted shall also be removed from office as guardian or curator;
and in the case of the parents of the child, they may be deprived, temporarily or perpetually, in the
discretion of the court, of their parental authority.
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Any person who shall induce any child under sixteen years of age to abandon the home of its ascendants,
guardians, curators, or teachers to follow any person engaged in any of the callings mentioned in paragraph
2 hereof, or to accompany any habitual vagrant or beggar.
D. UNDER DEPARTMENT ORDERS
EMPLOYMENT IN HAZARDOUS WORKPLACES

(DO NO. 4, SERIES OF 1999AND DOLE MEMO. CIR. NO.2, & DOLE MEMORANDUM CIRCULAR NO. 2-1998)
Technical Guidelines for Classifying Hazardous and Non-Hazardous Establishments, Workplaces and Work Processes.
Sec 3. Criteria for Classifying Hazardous Establishments or Workplaces. – An establishment or workplace may be classified as
hazardous if any of the conditions provided under Rule 1013 of the OSHS has been confirmed, as follows:
a) Where the nature of the work exposes the workers to dangerous environment elements, contaminants or work
conditions including ionizing radiations, chemicals, fire, flammable substances, noxious components and the like;
b) Where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring,
dock work, deep sea fishing and mechanized farming;
c) Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic products;
d) Where the workers use or are exposed to power-driven or explosive powder actuated tools; and
e) Where the workers are exposed to biologic agents like bacteria and fungi, viruses, protozoa, nematodes and other
parasites.
DO NO. 65-04, SERIES OF 2004 (SEE RIGHT TO HIRE: PROHIBITIONS TO HIRING page 29)
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DEPARTMENT ORDER NO. 04

SERIES OF 2009
HAZARDOUS WORK AND ACTIVITIES TO PERSONS BELOW 18
YEARS OF AGE
SECTION 1. Basis. – This Guidelines is being issued pursuant to Article 139(c), Book III of the Labor Code of the Philippines, as
amended, and its implementing rules and regulations, and Republic Act No. 7658, An Act Prohibiting the Employment of Children
Below 15 Years of Age in Public and Private Undertakings, Amending for this Purpose Section 12, Article VIII of Republic Act No.
7610 (otherwise known as the Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act.).
SECTION 2. Policy. - (a) The employment of a person below eighteen (18) years of age in an undertaking which is hazardous or
deleterious in nature as identified in this Guidelines shall be prohibited.
(b) The employment of children below fifteen (15) years of age in any undertakings is likewise prohibited, except only in
employment that would not endanger their life, safety, health and morals, or impair their normal development, and in any event
subject to the requirements of Republic Act No. 7658.
SECTION 3. Coverage. - The following work and activities are hereby declared hazardous to persons below 18 years of age
without prejudice to Section 14, Article VIII of Republic Act No. 7610; to DOLE Memorandum Circular No. 2, Series of 1998
(Technical Guidelines for Classifying Hazardous and Non-Hazardous Establishments, Workplaces and Work Processes) and to
other work and activities that may subsequently be declared as such:
1. Work which exposes children to physical, psychological or sexual abuse, such as in:
lewd shows (stripteasers, burlesque dancers, and the like)
cabarets
bars (KTV, karaoke bars)
dance halls
bath houses and massage clinics
escort service
gambling halls and places
2. Work underground, under water, at dangerous heights or at unguarded heights of two meters and above, or in
confined places, such as in:
mining
deep sea fishing/diving
installing and repairing of telephone, telegraph and electrical lines; cable fitters
painting buildings
window cleaning
fruit picking involving climbing
3. Work with dangerous machinery, equipment and tools, or which involves manual handling or transport of heavy
loads, such as in:
logging
construction
quarrying
operating agricultural machinery in mechanized farming
metal work and welding
driving or operating havy equipment such as payloaders, backhoes, bulldozers, cranes, pile driving
equipment, trailers, road rollers, tractor lifting appliances scaffold winches, hoists, excavators and loading
machines
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operating or setting motor-driven machines such as saws, presses, and wood -working machines
operating power-driven tools such as drills and jack hammers
stevedoring
working in airport hangars
working in warehouses
working in docks
4. Work in unhealthy environment which may expose children to hazardous processes, to temperatures, noise levels
or vibrations damaging to their health, to toxic, corrosive, poisonous, noxious, explosive, flammable and
combustible substances or composites, to harmful biological agents, or to other dangerous chemicals including
pharmaceuticals, such as in:
manufacture or handling of pyrotechnics
tanning
pesticide spraying
blacksmithing, hammersmiths, forging extracting lard and oil
tiling and greasing of heavy machinery
fiber and plastic preparing
bleaching, dyeing, and finishing of textiles using chemicals
embalming and as undertakers
painting and as finishers in metal craft industries
applying of adhesive/solvent in footwear, handicraft, and woodwork industries
brewing and distilling of alcoholic beverages
recycling of batteries and containers or materials used or contaminated with chemicals
working in abattoirs or slaughterhouses
garbage collecting
handling of animal manure in poultry houses or as fertilizers (compost and other decaying matter included)
in farming
working in hospitals or other health care facilities
assisting in laboratories and x-ray work
welding
working in furnaces and kilns working in discotheques
working in video arcades
5. Work under particularly difficult conditions such as work for long hours or during the night, or work where the child
is unreasonably confined to the premises of the employer.
SECTION 4. Applicability of this Guideline to Domestic or Household Service. - Persons between 15 and 18 years of age may be
allowed to engage in domestic or household service, subject in all cases to the limitations prescribed in Nos. 1 to 5 of Section 3
herein.
SECTION 5. Enforcement. - The labor standards enforcement officers of the Department of Labor and Employment shall use this
Guidelines in monitoring the compliance with labor standards and laws related to child labor which provides for only two
exceptions allowing children below fifteen years of age to be employed provided such employment would not endanger their
life, safety, health and morals, nor impair their normal development.
SECTION 6. Separability Clause. - If any part or provision of this Guidelines is declared invalid or unconstitutional, the remaining
provisions not affected thereby shall continue in full force and effect.
This Department Order shall take effect fifteen days after its complete publication in two (2) newspaper of general circulation.
Accordingly, Department Order No. 4, approved on June 8, 1973, is hereby superseded.
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(Sgd.) BIENVENIDO E. LAGUESMA

Secretary
COMPULSORY HIRING OF EMPLOYEES
RA 7920 NEW ELECTRICAL ENGINEERING LAW
AN ACT PROVIDING FOR, A MORE RESPONSIVE AND COMPREHENSIVE REGULATION FOR

THE PRACTICE, LICENSING, AND REGISTRATION OF ELECTRICAL ENGINEERS AND ELECTRICIANS
SEC. 33. Personnel Required. Except as otherwise provided in this Act, every electric plant, industrial plant or
factory, commercial establishment, institutional building, watercraft, electric locomotive or in any other
installation where persons and properties are exposed to electrical hazards shall not have less than the
following complement of professional electrical engineer, registered electrical engineer, and registered master
electrician:
(b) Industrial plants or factories, commercial establishments, or institutional buildings having a connected kVA
load of any size and employing voltages of any standard rating one (1) professional electrical engineer
or one (1) registered electrical engineer. However, for connected loads up to five hundred kilovolt amperes
(500 kVA) and employing voltages up to six hundred volts (600 V) one (1) registered master electrician;
RA 8495 PHILIPPINE MECHANICAL ENGINEERING ACT OF 1998
AN ACT REGULATING THE PRACTICE OF MECHANICAL ENGINEERING IN THE PHILIPPINES
Sec. 34. Personnel Required in Mechanical Plant. — Every mechanical work project or plant in operation shall have not
less than the following complement of resident licensed professional mechanical engineer, mechanical engineer or
certified plant mechanic:
(a) 100 kw or over but not more than 300 kw: one (1) certified plant mechanic, or more mechanical engineer or one
(1) professional mechanic engineer: Provided, That every mechanical work, project, or plant in this category
operating in more than one shift every twenty-four hours, shall have in addition to the minimum personnel
herein required, one (1) certified plant mechanical, or one (1) mechanical engineer, or one (1) professional
mechanical engineer in-charge of each and every additional shift.
(b) 300 kw or over, but not more than 2000 kw: one (1) mechanical engineer or one (1) professional mechanical
engineer or one (1) professional mechanical engineer: Provided, That every mechanical work, project, or plant in
this category operating in more than one shift every twenty-four (24) hours shall have, in addition to the
minimum personnel herein required at least one (1) mechanical engineer, or one (1) professional mechanical
engineer in-charge of each and every additional shift.
(c) Over 2000 kw: one (1) professional mechanical engineer: Provided, That every mechanical work, project or plant
in this category operating in more than one shift every twenty-four (24) hours shall have, in addition to the
minimum personnel herein required at least one (1) professional mechanical engineer in-charge of each and
every additional shift.
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ADDITIONAL NOTES:
BONA FIDE QUALIFICATION RULE
To justify a bona fide occupational qualification, the employer must prove two factors: (1) that the employment qualification is
reasonably related to the essential operation of the job involved; and, (2) that there is a factual basis for believing that all or
substantially all persons meeting the qualification would be unable to properly perform the duties of the job.
TWO THEORIES OF EMPLOYMENT DISCRIMINATION
A. DISPARATE TREATMENT – Plaintiff must prove that an employment policy is discriminating on its face.
B. DISPARATE IMPACT – Complainant must prove that a facial neutral policy has a disproportionate effect on a part of the
class.
ANTI-NEPOTISM
Banning all immediate family members including spouse from working in the same company
BAR QUESTION (1996)

Rights of Employer/Employee
What are the rights of an employer and an employee?
SUGGESTED ANSWER:
The Constitution in Art. XIII, Section 3 provides for the following rights of employers and employees:
A. Employers Right to a reasonable return on investments, and to expansion and growth.
1. To a just share in the fruits of production;
2. Right to self organization, collective bargaining and negotiations and peaceful concerted activities, including the right to strike in
accordance with law;
3. To security of tenure, humane conditions of work, and a living wage; and
4. To participate in policy and decision-making processes affecting their rights and benefits as may be provided by law,
ALTERNATIVE ANSWER:
In an employer-employee relationship, it is the right of the employer to use the services of an employee who is under his (employer's)
orders as regards the employment. On the other hand, it is the right of the employee to receive compensation for the services he renders
for the employer.
BAR QUESTION (2000)

Rights of the Employer; Management Prerogative (2000)
a) An exclusive school for girls, run by a religious order, has a policy of not employing unwed mothers, women with live-in partners, and
lesbians. Is the policy violative of any provision of the Labor Code on employment of women? (3%)
b) The same school dismissed two female faculty members on account of pregnancy out of wedlock. Did the school violate any provision
of the Labor Code on employment of women? (3%)
SUGGESTED ANSWER:
a) No, the policy does not violate the Labor Code. The practice is a valid exercise of management function. Considering the nature and
reason for existence of the school, it may adopt such policy as will advance its laudable objectives. In fact, the policy accords with the
constitutional precept of inculcating ethical and moral values in schools. The school policy does not discriminate against women solely on
account of sex (Art. 135, Labor Code) nor are the acts prohibited under Art. 137 of the Labor Code.
ALTERNATIVE ANSWER:
The school violated Art. 137 (2) of the Labor Code which states that: "It shall be unlawful for any employer to discharge such woman on
account of pregnancy". The pregnancy here could obviously have resulted from love and such only lends substance to the saying that
"the heart has reasons of its own which reason does not know", a matter that cannot "be so casually equated with immorality". [Chua-
Qua v. Clave, 189 SCRA 117 (1990)].
SUGGESTED ANSWER:
b) No, because to tolerate pregnancy out of wedlock will be a blatant contradiction of the school's laudable mission which, as already
stated, accords with high constitutional precepts.
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This answer does not contradict the ruling in ChuaQua where the teacher merely fell in love with a bachelor student and the teacher, also
single, did not get pregnant out of wedlock.
BAR QUESTION (2005)

Rights of the Employer; Management Prerogative; Benefits; Unilaterally Given
Little Hands Garment Company, an unorganized manufacturer of children's apparel with around 1,000 workers, suffered losses for the
first time in history when its US and European customers shifted their huge orders to China and Bangladesh. The management informed
its employees that it could no longer afford to provide transportation shuttle services. Consequently, it announced that a normal fare
would be charged depending on the distance traveled by the workers availing of the service.
Was the Little Hands Garments Company within its rights to withdraw this benefit which it had unilaterally been providing to its
employees? Select the best answer(s) and briefly explain your reason(s) therefor.
(a) Yes, because it can withdraw a benefit that is unilaterally given;
(b) Yes, because it is suffering losses for the first time;
(c) Yes, because this is a management prerogative which is not due any legal or contractual obligation;
(d) No, because this amounts to a diminution of benefits which is prohibited by the Labor Code;
(e) No, because it is a fringe benefit that has already ripened into a demandable right or entitlement. (10%)
ALTERNATIVE ANSWER:
(c) Yes, because this is a management prerogative which is not due any legal or contractual obligation;
An employer cannot be forced to continue giving a benefit, being given as a management prerogative, when it can no longer afford to pay
for it. To hold otherwise, would be to penalize the employer for his past generosity. (Producer's Bank of the Philippines v. NLRC, G.R. No.
100701, March 28, 2001)
ALTERNATIVE ANSWER:
(d) No, because this amounts to a diminution of benefits which is prohibited by the Labor Code;
(e) No, because it is a fringe benefit that has already ripened into a demandable right or entitlement.
A company practice favorable to employees had indeed been established and the payments made pursuant thereto, ripened into
benefits enjoyed by them. And any benefit and supplement being enjoyed by the employees cannot be reduced, diminished,
discontinued or eliminated by the employer by virtue of Article 100 of the Labor Code of the Philippines which prohibits the diminution or
elimination of the employer of the employees' existing benefits. (Sevilla Trading Co. v. Semana, G.R. No. 152456, April 28, 2004)
ALTERNATIVE ANSWER:
(d) No, because this amounts to a diminution of benefits which is prohibited by the Labor Code. You cannot compel an employer to
continue paying the benefits if it is suffering from serious business losses. However, the benefit has already ripened into an employer
practice or policy, and therefore it cannot be withdrawn without violating Article 100 of the Labor Code on non-diminution of benefits.
BAR QUESTION (1994)

Rights of the Employer; Management Prerogative; Contracting Out Services
Harbor View Hotel has an existing Collective Bargaining Agreement (CBA) with the union of rank-and-file employees consisting, among
others, of bartenders, waiters, roomboys, housemen and stewards. During the lifetime of the CBA, Harbor View Hotel, for reasons of
economy and efficiency, decided to abolish the position of housemen and stewards who do the cleaning of the hotel's public areas. Over
the protest of the Union, the Hotel contracted out the aforementioned job to the City Service Janitorial Company, a bonafide
independent contractor which has a substantial capital in the form of Janitorial tools, equipment, machineries and competent manpower.
Is the action of the Harbor View Hotel legal and valid?
SUGGESTED ANSWER:
The action of Harbor View Hotel is legal and valid. The valid exercise of management prerogative, discretion and judgment encompasses
all aspects of employment, including the hiring, work assignments, working methods, time, place and manner of work, tools to be used,
processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers, and
the discipline, dismissal and recall of workers, except as provided for, or limited by special laws.
Company policies and regulations are, unless shown to be gross oppressive or contrary to law, generally binding and valid on the parties
and must be complied with until finally revised or amended unilaterally or preferably through negotiation or by competent authority.
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(San Miguel Corporation vs. Reynaldo R. Ubaldo and Emmanuel Noel A. Cruz, Chairman and Member respectively of the Voluntary
Arbitration Panel, et al G.R No. 92859, 1 February 1993. J. Campos, Jr., 218 SCRA 293)
ALTERNATIVE ANSWER:
a) The action of the Harbor View Hotel is legal and valid. CONTRACTING OUT SERVICES or functions being performed by union members is
not illegal per se. In fact, it is the prerogative of management to adopt cost-saving measures to ensure economy and efficiency.
Contracting out services or functions being performed by Union members becomes illegal only when it interferes with, restrains or
coerces employees in the exercise of their right to self-organization.
b) The action of Harbor View Hotel would, at first glance, appear to be an unfair labor practice under Article 248(c), e.g. "to contract out
services or functions being performed by union members if such will interfere with, restrain or coerce employees in the exercise of their
right to self-organization."
Considering, however, that in the case at bar, there is no showing that the contracting out of services would violate the employees right
to self-organization, it is submitted that the hotel's action is a valid exercise of its management prerogatives and the right to make
business judgments in accordance with law.
BAR QUESTION (1994)

Rights of the Employer; Management prerogatives
Bulacan Medical Hospital (BMH) entered into a Collective Bargaining Agreement (CBA) with its Union, wherein it is expressly stipulated in
the Management Prerogative Clause that BMH shall, in the exercise of its management prerogatives, have the sole and exclusive right to
promulgate, amend and modify rules and regulations for the employees within the bargaining unit. A year after the contract was signed,
BMH issued its Revised Rules and Regulations and furnished a copy thereof to the Union for dissemination to all employees covered by
the CBA. The Union wrote BMH demanding that the Revised Rules and Regulations be first discussed with them before its
implementation. BMH refused. So, the Union filed an action for unfair labor practice (ULP) against BMH.
1. Is the Union correct?
2. Assuming that the CBA was signed "or executed before the 1987 Constitution was ratified, would your answer to the preceding
question be different?
SUGGESTED ANSWER:
1) The Union is correct. A provision in the collective bargaining agreement concerning management prerogatives, may not be interpreted
as cession of the employees right to participate in the deliberation of matters which may affect their right and the formulation of policies
relative thereto, such as the formulation of a code of discipline.
A line must be drawn between management prerogatives regarding business operations per se and those which affect the rights of the
employees, and in treating the latter, management should see to it that its employees are at least properly informed of its decisions or
modes of action.
The attainment of a harmonious labor management relationship and the existing state policy of enlightening workers concerning their
rights as employees demand no less than the observance of transparency in managerial moves affecting employees' rights. [Philippine
Airlines, Inc. vs. National Labor Relations Commission, et al, G.R No. 85985, 13 August 1993. J. Melo. 225 SCRA 258, 301.)
ALTERNATIVE ANSWER:
1. The Union is correct. Workers have the right to participate in policy and decision-making processes affecting their rights, benefits and
welfare. (Art. 255J.
2. Yes. The Union is correct in asking for discussion of the revised rules prior to their effectivity. The reason is Art. XIII, Sec. 3 of the 1987
Constitution, allowing workers the right to participate in policy and decision-making on matters related to their welfare and benefits.
The Union's remedy however should not be to file a ULP case but to initiate a GRIEVANCE proceeding, and if unresolved, submit the
matter to voluntary arbitration.
SUGGESTED ANSWER:
2) The answer would be the same even if the CBA was signed or executed before the ratification of the 1987 Constitution because it has
always been the policy of the State to promote the enlightenment of workers concerning their rights and obligations as employees. (Art.
211; PAL vs. NLRC, GR 85985, August 13, 1993)
BAR QUESTION (1999)

E-E Relationship; GRO’s & Night Clubs
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FACTS: Solar Plexus Bar and Night Club allowed by tolerance fifty (50) Guest Relations Officers (GRO) to work without compensation in its
establishment under the direct supervision of its Manager from 8:00 p.m. to 4:00 a.m. everyday, including Sundays and holidays. The
GROs, however, are free to ply their trade elsewhere at anytime but once they enter the premises of the night club, they are required to
stay up to closing time. The GROs earned their keep exclusively from commissions for food and drinks, and tips from generous customers.
In time, the GROs formed the Solar Ugnayan ng mga Kababaihang Inaapi (SUKI); a labor union duly registered with DOLE. Subsequently,
SUKI filed a petition for certification election in order to be recognized as the exclusive bargaining agent of its members. Solar Plexus
opposed the petition for certification election on the singular ground of absence of employer-employee relationship between the GROs
on one hand and the night club on the other hand. May the GROs form SUKI as a labor organization for purposes of collective bargaining?
Explain briefly. (5%).
SUGGESTED ANSWER:
The GROs may form SUKI as a labor organization for purposes of collective bargaining. There is an employer-employee relationship
between the GROs and the night club.
The Labor Code (in Article 138) provides that any woman who is permitted or suffered to work, with or without compensation, in any
nightclub, cock tail lounge, massage clinic, bar or similar establishment, under the effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of Labor, shall be considered as an employee of such establishment for
purposes of labor and social legislation.
In the case at bar, it is clearly stated that the women once they enter the premises of the night club would be under the direct
supervision of the manager from 8:00 p.m. to 4:00 a.m. everyday including Sundays and holidays. Such is indicative of an employer-
employee relationship since the manager would be exercising the right of control.
BAR QUESTION (2000)

Employment; Women; Anti-Sexual Harassment Act
A Personnel Manager, while interviewing an attractive female applicant for employment, stared directly at her for prolonged periods,
albeit in a friendly manner. After the interview, the manager accompanied the applicant to the door, shook her hand and patted her on
the shoulder. He also asked the applicant if he could invite her for dinner and dancing at some future time. Did the Personnel Manager,
by the above acts, commit sexual harassment? Reason. (3%)
SUGGESTED ANSWER:
Yes, because the Personnel Manager, a man, is in a position to grant or not to grant a favor (a job) to the applicant. Under the
circumstances, inviting the applicant for dinner or dancing creates a situation hostile or unfriendly to the applicant's chances for a job if
she turns down the invitation. [Sec. 3(a)(3), R.A. No. 7877, Anti-Sexual Harassment Act].
ALTERNATIVE ANSWER:
There is no sexual harassment because there was no solicitation of sexual favor in exchange of employment. Neither was there any
intimidating, hostile or offensive environment for the applicant.
BAR QUESTION (2000)

b) In the course of an interview, another female applicant inquired from the same Personnel Manager if she had the physical attributes
required for the position she applied for. The Personnel Manager replied: "You will be more attractive if you will wear micro-mini dresses
without the undergarments that ladies normally wear." Did the Personnel Manager, by the above reply, commit an act of sexual
harassment? Reason. (3%)
SUGGESTED ANSWER:
No, the Personnel Manager's reply to the applicant's question whether she qualifies for the position she is applying for does not
constitute sexual harassment. The Personnel Manager did not ask for or insinuate a request for a sexual favor in return for a favorable
action on her application for a job. But the Manager's statement may be offensive if attire or physical look is not a criterion for the job
being applied for.
ALTERNATIVE ANSWER:
Yes. The remarks would result in an offensive or hostile environment for the employee. Moreover, the remarks did not give due regard to
the applicants' feelings and it is a chauvinistic disdain of her honor, justifying the finding of sexual harassment [Villarama v. NLRC, 236
SCRA 280 (1994)]
BAR QUESTION (2004)

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Pedrito Masculado, a college graduate from the province, tried his luck in the city and landed a job as utility/maintenance man at the
warehouse of a big shopping mall. After working as a casual employee for six months, he signed a contract for probationary employment
for six months. Being well-built and physically attractive, his supervisor, Mr. Hercules Barak, took special interest to befriend him. When
his probationary period was about to expire, he was surprised when one afternoon after working hours, Mr. Barak followed him to the
men’s comfort room. After seeing that no one else was around, Mr. Barak placed his arm over Pedrito’s shoulder and softly said: “You
have great potential to become regular employee and I think I can give you a favorable recommendation. Can you come over to my
condo unit on Saturday evening so we can have a little drink? I’m alone, and I’m sure you want to stay longer with the company.”
Is Mr. Barak liable for sexual harassment committed in a work-related or employment environment? (5%)
SUGGESTED ANSWER:
Yes, the elements of sexual harassment are all present. The act of Mr. Barak was committed in a workplace. Mr. Barak, as supervisor of
Pedrito Masculado, has authority, influence and moral ascendancy over Masculado. Given the specific circumstances mentioned in the
question like Mr. Barak following Masculado to the comfort room, etc. Mr. Barak was requesting a sexual favor from Masculado for a
favorable recommendation regarding the latter's employment.
It is not impossible for a male, who is a homosexual, to ask for a sexual favor from another male.
I do not see any sexual favor being solicited. Having a "little drink" in Mr. Barak's Condo Unit, as condition for a "favorable
recommendation is not one of the prohibited acts enumerated in Sec. 3 (a) of R.A. 7877, otherwise known as the Anti-Sexual Harassment
Act of 1995.
BAR QUESTION (2003)

Employment; Women; Anti-Sexual Harassment vs. Discrimination against Women
Can an individual, the sole proprietor of a business enterprise, be said to have violated the Anti-Sexual Harassment Act of 1995 if he
clearly discriminates against women in the adoption of policy standards for employment and promotions in the enterprise? Explain.
SUGGESTED ANSWER:
When an employer discriminates against women in the adoption of policy standards for employment and promotion in his enterprise, he
is not guilty of sexual harassment. Instead, the employer is guilty of discrimination against women employees which is declared to be
unlawful by the Labor Code.
For an employer to commit sexual harassment, he - as a person of authority, influence or moral ascendancy -should have demanded,
requested or otherwise required a sexual favor from his employee whether the demand, request or requirement for submission is
accepted by the object of said act.
BAR QUESTION (1998)

Employment; Women; Discrimination by reason of Age (1998)
At any given time, approximately ninety percent (90%) of the production workforce of a semiconductor company are females. Seventy-
five percent (75%) of the female workers are married and of child-bearing years. It is imperative that the Company must operate with a
minimum number of absences to meet strict delivery schedules. In view of the very high number of lost working hours due to absences
for family reasons and maternity leaves, the Company adopted a policy that it will employ married women as production workers only if
they are at least thirty-five (35) years of age. Is the policy violative of any law? [5%]
SUGGESTED ANSWER:
Yes, it is violative of Article 140 of the Labor Code which provides that no employer shall discriminate against any person in respect to
terms and conditions of employment on account of his age.
The policy of the company to employ married women as production workers only if they are at least thirty-five (35) years of age is valid.
There is no prohibition in the Labor Code for such an employer to exercise this management function. There is a justifiable basis for the
company policy.
i.e., the need for continuity of production with minimum absences because of the peculiar business conditions and needs of the
company, i.e., very tight delivery schedules. The company respects the institution of marriage as shown by the fact that it employs
married women. There is no violation of the stipulation against marriage (Art. 136), and prohibited acts (Art. 137} of the Labor Code.
STILL ANOTHER SUGGESTED ANSWER:
It may be noted that the policy is directed only to married women. This may violate the spirit of Article 136 of the Labor Code which
provides that it shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman
shall not get married.
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BAR QUESTION (1995)

Employment; Women; Discrimination by reason of Marriage
Fil-Aire Aviation Company (FIL-AIRE) is a new airline company recruiting flight attendants for its domestic flights. It requires that the
applicant be single, not more than 24 years old, attractive, and familiar with three (3) major Visayan dialects, viz: Ilongo, Cebuano and
Waray. Lourdes, 23 years old, was accepted as she possessed all the qualifications. After passing the probationary period, Lourdes
disclosed that she got married when she was 18 years old but the marriage was already in the process of being annulled on the ground
that her husband was afflicted with a sexually transmissible disease at the time of the celebration of their marriage. As a result of this
revelation, Lourdes was not hired as a regular flight attendant. Consequently, she filed a complaint against FIL-AIRE alleging that the pre-
employment qualifications violate relevant provisions of the Labor Code and are against public policy. Is the contention of Lourdes
tenable? Discuss fully.
SUGGESTED ANSWER:
The contention of Lourdes is tenable. When she was not hired as a regular flight attendant by FILAIRE because she disclosed that she got
married when she was 18 years old. The airline company violated the provision of the Labor Code which states: "It shall be unlawful for
an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married, or to
stipulate expressly or tacitly that upon getting married a woman employee shall be deemed resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage."
BAR QUESTION (1997)

Employment; Women; discrimination; illegal dismissal (1997)
Dinna Ignacio was hired by Stag Karaoke Club as a guest relations officer. Dinna was also required to sing and dance with guests of the
club. In Dinna Ignacio's employment contract, which she signed, the following stipulations appeared:
Compensation: Tips and commissions coming from guests shall be subjected to 15% deduction.
Hours of work: 5 P.M. up to 2 A.M. dairy including Sundays and Holidays
Other conditions: Must maintain a body weight of 95 Ibs., remain single. Marriage or pregnancy will be considered as a valid
ground for a termination of employment.
A year later, Dinna Ignaclo requested to go on leave because she would be getting married to one of the club's regular guests. The
management of the club dismissed her.
Dinna filed a complaint for illegal dismissal, night shift differential pay, backwages, overtime pay and holiday pay. Discuss the merits of
Dinna's complaint.
SUGGESTED ANSWER:
The first issue to be resolved is: Is Dinna Ignacio an employee of the Star Karaoke Club? Yes, she is an employee per the provision of the
Labor Code that states: "Any woman who is permitted or suffered to work, with or without compensation, in any night club, cocktail
lounge, massage clinic, bar or similar establishment, under the effective control or supervision of the employer for a substantial period
shall be considered an employee of such establishment for purposes of labor and social legislation"(Art. 138). In Dinna's conditions of
employment have all the aforesaid characteristics.
She has been illegally dismissed. The Labor Code expressly provides, that "It shall be unlawful for an employer to require as a condition of
employment or continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon
getting married a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage." (Art.
136)
Because of her illegal dismissal, she is entitled to backwages from the time her compensation was withheld from her to the time of her
actual reinstatement.
Dinna is not entitled to night differential pay, overtime pay and holiday pay because she belongs to one of those classes of employees
who are not covered by the provision of the Labor Code providing for these benefits. She is a worker paid by results, since her
compensation is determined by the tips and commission that she receives from her guests.
BAR QUESTION (2005)

Employment; Women; Sexual Harassment Act
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Carissa, a comely bank teller, was due for her performance evaluation which is conducted every six months. A rating of "outstanding" is
rewarded with a merit increase. She was given a "below average" rating in the last two periods. According to the bank's personnel policy,
a third rating of "below average" will result in termination. Mr. Perry Winkle called Carissa into his office a few days before submitting her
performance ratings. He invited her to spend the night with him in his rest house. She politely declined. Undaunted, Mr. Winkle renewed
his invitation, and Carissa again declined. He then warned her to "watch out" because she might regret it later on. A few days later,
Carissa found that her third and last rating was again "below average."
Carissa then filed a complaint for sexual harassment against Mr. Winkle with the Department of Labor and Employment. In his counter-
affidavit, he claimed that he was enamored with Carissa. He denied having demanded, much less received any sexual favors from her in
consideration of giving her an "outstanding" rating. He also alleged that the complaint was premature because Carissa failed to refer the
matter to the Committee on Decorum and Discipline for investigation and resolution before the case against him was filed. In her reply
affidavit, Carissa claimed that there was no need for a prior referral to the Committee on Decorum and Discipline of her complaint.
Resolve the case with reasons. (5%)
SUGGESTED ANSWER:
I will hold Mr. Perry Winkle guilty of sexual harassment. This resolution is predicated mainly upon the following considerations:
1. Mr. Perry Winkle exercises authority, influence or moral ascendancy over Carissa;
2. Mr. Winkle's insistence in inviting Carissa "to spend the night with him in his rest house" implies a request or demand for a
sexual favor;
3. Mr. Winkle's warning clearly manifests that the refusal of the sexual favor would jeopardize Carissa's continued employment;
and
4. Mr. Winkle's invitation for a sexual favor will result in an intimidating, hostile, or otherwise offensive working environment
for Carissa.
Carissa is correct in stating that there was no need for prior referral to the Committee on Decorum and Discipline of her complaint
because nothing in the law precludes the victim of sexual harassment from instituting a separate and independent action for damages
and other affirmative relief. (Sec. 6, R.A. No. 7877)
BAR QUESTION (2006)

Employment; Women; Sexual Harassment Act (2006)
As a condition for her employment, Josephine signed an agreement with her employer that she will not get married, otherwise, she will
be considered resigned or separated from the service.
Josephine got married. She asked Owen, the personnel manager, if the company can reconsider the agreement. He told Josephine he can
do something about it, insinuating some sexual favors. She complained to higher authorities but to no avail. She hires you as her counsel.
What action or actions will you take? Explain. (5%)
ALTERNATIVE ANSWER:
I will file a criminal case against Owen for violation of RA. No. 7877, otherwise known as the "Anti-Sexual Harassment Act of 1995."
I will also file a separate and independent action for damages against Owen. By reason of the fact that the Company did not take
immediate action thereon, I will include the Company in the civil suit for damages and make it jointly and severally liable with Owen.
ALTERNATIVE ANSWER:
Aside from filing a criminal case against Owen for violation of the Sexual Harassment Law (R.A. 7877) and a separate action for damages,
impleading the company, I will also file an action for constructive dismissal against the Company since the employee was placed in a job
atmosphere imposing oppressive work conditions contrary to public policy and morals.
BAR QUESTION (2004)

Employment; Children; Below 15 yrs old (2004)
A spinster school teacher took pity on one of her pupils, a robust and precocious 12-year old boy whose poor family could barely afford
the cost of his schooling. She lives alone at her house near the school after her housemaid left. In the afternoon, she lets the boy do
various chores as cleaning, fetching water and all kinds of errands after school hours. She gives him rice and P30.00 before the boy goes
home at 7:00 every night. The school principal learned about it and charged her with violating the law which prohibits the employment
of children below 15 years of age. In her defense, the teacher stated that the work performed by her pupil is not hazardous, and she
invoked the exception provided in the Department Order of DOLE for the engagement of persons in domestic and household service. Is
her defense tenable? Reason. (5%)
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SUGGESTED ANSWER:
No, her defense is not tenable. Under Article 139 of the Labor Code on "minimum employable age", no child below 15 years of age shall
be employed except when he works directly under the sole responsibility of his parents or guardian, the provisions of the alleged
Department Order of DOLE to the contrary notwithstanding. A mere Department Order cannot prevail over the express prohibitory
provisions of the Labor Code.
[Note: Sec. 3, RA 9231 allows a child below 15 years of age to work for not more than 20 hours a week; provided, that the work shall not
be more than four (4) hours at any given day; provided, further, that he does not work between 8 o'clock in the evening and 6 o'clock in
the morning of the following day; and provided, finally, that the work is not hazardous or deleterious to his health or morals. THIS IS A
RECENT LAW APPROVED ONLY ON JULY 28, 2003, which is beyond the cut-off period of the Bar Exams]
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TOPIC 4: WAGES AND WAGE FIXING
CONCEPT OF WAGE AND SALARY
WAGE VS. SALARY
WAGE
Applies to the compensation for manual labor, skilled or unskilled, paid at stated times, and measured by the day, week,
month, or season.
Indicates inconsiderable pay for a lower and less responsible character of employment.
SALARY
Denotes a higher degree of employment or a superior grade of services, and implies a position or office.
Suggestive of a larger and more permanent or fixed compensation for more important service.
By some of the authorities, the word “wages” in its ordinary acceptance, has a less extensive meaning than the word “salary”,
“wages” being ordinarily restricted to sums paid to artisans, mechanics, laborers, and other employees of like class, as distinguished
from the compensation of clerks, officers of public corporations, and public offices. In many situations, however, the words “wages”
and “salary” are SYNONYMOUS. [35 Am. Jur. Sec. 63, p. 496-497]
Our SC reached the same conclusion, the words “wages” and “salary” are in essence synonymous.
Equitable PCIB vs. Sadac

G.R. No. 164772, June 8, 2006
WAGE SYNONYMOUS WITH SALARRY; DISTINCTION MERELY SEMANTICS
The distinction between salary and wage in Gaa was for the purpose of Article 1708 of the Civil Code which mandates that, “the laborer’s wage shall
not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance.” In labor law, however, the
distinction appears to be merely semantics. Paramount and Evangelista may have involved wage earners, but the petitioner in Espejo was a General
Manager with a monthly salary of P9, 000.00 plus privileges. That wage and salary are synonymous has been settled in Songco v. National Labor
Relations Commission. We said:
Broadly, the word “salary” means a recompense or consideration made to a person for his pains or industry in another man’s business. Whether it
be derived from “salarium,” or more fancifully from “sal,” the pay of the Roman soldier, it carries with it the fundamental idea of compensation for
services rendered. Indeed, there is eminent authority for holding that the words “wages” and “salary” are in essence synonymous (Words and
Phrases, Vol. 38 Permanent Edition, p. 44 citing Hopkins vs. Cromwell, 85 N.Y.S.839, 841, 89 App. Div. 481; 38 Am. Jur. 496). “Salary,” the etymology
of which is the Latin word “salarium,” is often used interchangeably with “wage”, the etymology of which is the Middle English word “wagen”. Both
words generally refer to one and the same meaning, that is, a reward or recompense for services performed. Likewise, “pay” is the synonym of
“wages” and “salary” (Black’s Law Dictionary, 5th Ed)
Q: Is there an instance outside labor law when wage and salary is distinguished?
A: Yes. In Article 1708 of the Civil Code where wage and salary are distinguished with regards to execution and attachment.
Article 98. Application of Title.

This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in their respective
homes in needlework or in any cottage industry duly registered in accordance with law.
PRINCIPLES
“FAIR DAY’S WAGE FOR A FAIR DAY’S LABOR”

A fair day’s wage for a fair day’s labor continues to govern the relation between labor and capital and remains a basic factor in
determining employees’ wages.
PAL vs. NLRC
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GR 55159 June 22, 1989

“If there is no work performed by the employee there can be no wage or pay unless the laborer was able, willing and ready to work
but was prevented by management or was illegally locked out, suspended or dismissed. Where the employee’s dismissal was for a
just cause, it would neither be fair nor just to allow the employee to recover something he has not earned and could not have
earned.”
SSS v. SSS Supervisor’s Union

GR L-31832 10/23/82
“Where the failure of workers to work was not due to the employer’s fault, the burden of economic loss suffered by the employees
should not be shifted to the employer. Each party must bear his own loss.”
EQUAL PAY FOR EQUAL WORK
ISAE v. Quisumbing
G.R. No. 128845 June 1, 2000
“This doctrine/legal truism means that persons who work with substantially equal qualification, skill, effort & responsibility, under
similar conditions should be paid similar salaries, notwithstanding its international character.
If an employer accords employees the same position and rank, the presumption is that these employees perform equal work. There
is no evidence that foreign-hires perform 25% more efficiently or effectively than local-hires. Both groups have similar functions and
responsibilities, which they perform under similar conditions.
The “dislocation factor” and the foreign-hires “limited tenure” also cannot serve as valid bases for the distinction in salary rates. The
dislocation factor and limited tenure affecting foreign-hires are adequately compensated by certain benefits accorded to them
which are not enjoyed by the local-hires such as housing, transportation, shipping cost, taxes, and home leave travel allowance.
We find the point-of-hire classification employed by respondent school to justify the distinction in the salary rates of foreign-hires
and local-hires to be an invalid classification. There is no reasonable distinction between the services rendered by foreign-hires and
local-hires.”
Employees in the Philippines, if they are performing similar functions and responsibilities under similar working conditions,
should be paid under this principle.
RIGHT TO A “LIVING WAGE”

Section 3, Art 8, 1987 Constitution
xxx
State shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law. Xxx
FACILITIES AND SUPPLEMENT
FACILITIES
Book III, Rule 7, Sec. 5

“FACILITIES” shall include articles or services for the benefit of the employee or his family but shall not include tools of the trade or
articles or service primarily for the benefit of the employer or necessary to the conduct of the employer’s business.
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Atok-Big Wedge Assn v. Atok-Big Wedge Co.

97 phil 294
“FACILITIES are items of expense necessary for the laborer’s and his family’s existence and subsistence so that by express provision
of law, they form part of the wage and when furnished by the employer are deductible therefrom, since if they are not so furnished
the laborer would spend and pay for them just the same.”
Mabeza vs. NLRC

GR 118506 04/18/97
REQUISITES FOR FACILITIES TO BE CONSIDERED AS AN INTEGRAL PART OF AN EMPLOYEE’S WAGE (deductibility)

1. Must be customarily furnished by the employer to the employee;
2. Must be charged at fair and reasonable value; and
3. The provision on deductible facilities must be voluntarily accepted by the employee in writing.
More significantly, the food and lodging, or the electricity and water consumed by the petitioner were not facilities but
supplements. A benefit or privilege granted to an employee for the convenience of the employer is not facility. The criterion in
making a distinction between the two not so much lies in the kind (food, lodging) but the purpose. Considering therefore that hotel
workers are required to work different shifts and are expected to be available at various odd hours, their ready availability is a
necessary matter in the operations of a small hotel, such as the private respondent’s hotel.”
If the requisites are all present, that facilities may take the place of the cash payment of the employee’s wage. This is one
exception of the requirement that an employee’s wage shall be paid in legal tender, you cannot pay it in kind.
Art 97f provides that “wage” includes the fair and reasonable value, as determined by the Secretary of Labor, of board,
lodging, or other facilities customarily furnished by the employer to the employee.
This means that an employer may provide, for instance, food and housing to his employees but he may deduct their values from the
employees’ wages.
STEPS TO DETERMINE IF A FACILITY OR NOT:
Ascertain the purpose

For whose benefit? Employer or employee?
If for employee, is it deductible or not?(apply the 3 requisites for deductibility)
SUPPLEMENTS
Atok-Big Wedge Assn v. Atok-Big Wedge Co.

97 phil 294
“SUPPLEMENTS constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above
their ordinary earnings or wages.”
Facilities – are items of expense necessary for the laborer’s and his family’s existence and subsistence.
Requisites:
1. Must be customarily furnished by the employer to the employees
Customary – is founded on long-established and constant practice connoting regularity.
2. Must be charged at a fair and reasonable value
3. The provision on deductible facilities must be voluntarily accepted by the employee in writing. (Mabeza vs. NLRC)
Facilities (Section 5, Rule VII, Book III)- articles or services for the benefit of the employee or his family but shall not include
tools of the trade or articles or services primarily for the benefit of the employer or necessary to the conduct of the
employer’s business.
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Supplement – Constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above
their ordinary earnings or wages.
The classification of an item of expense as a facility or a supplement will depends on the purpose and not on the kind. So, if it is
principally or mainly for the benefit of the employee, classify as facilities, and the fair and reasonable value of that can be considered
as deductible from the employee’s wage. An employer can validly pay the employee in the form of cash or in kind. And that kind
refers to facilities.
If the requisites are all present, that facilities may take the place of the cash payment of the employee’s wage. This is one exception
to the requirement that an employee’s wage shall be paid in legal tender; you cannot pay it in kind.
If it classifies under facilities, it shall include the fair and reasonable value of board, lodging, etc. as long as it is mainly and principally
for the benefit of the employee.
FACILITIES VS. SUPPLEMENTS
Facilities are wage-deductible, supplements are not.

The classification of an item of expense as a facility or a supplement will depend on the purpose and not on the kind.
So if it is principally or mainly for the benefit of the employee, classify as facilities, and the fair and reasonable value of that
can be considered as deductible from the employee’s wage.
FACILITIES SUPPLEMENTS
Items of expense necessary for the laborer’s and his Constitute extra remuneration or privileges or benefits
family’s existence and subsistence. given to or received by the labors over and above their
ordinary earnings wages.
Part of the wage Independent of the wage
Deductible from the wage Not wage deductible
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DEPARTMENT ORDER NO. 126-13

SERIES OF 2013
REVISED GUIDELINES ON THE CONDUCT OF FACILITY EVALUATION
Pursuant to Administrative Order No. 357, Series of 2010, DOLE Rationalization Plan, Executive Order No. 366, and Article 121 (b) of the
Labor Code of the Philippines, as amended by Republic Act No. 6727, this Guidelines shall govern the procedures and standards for the
conduct of Facility Evaluation (FE).
RULE I
Section 1. Title. This Guidelines shall be known as the Revised Guidelines on the Conduct of Facility Evaluation.
Section 2. Construction. This Guidelines shall be liberally construed to carry out the objectives of Administrative Order No. 357, Series of
2010, DOLE Rationalization Plan, Executive Order No. 366, and Article 121 (b) of the Labor Code of the Philippines, as amended by
Republic Act No. 6727.
Section 3. Scope. This Guidelines shall govern the conduct of evaluation by the Regional Tripartite Wages and Productivity Boards of
facilities provided by the employer to his employees but shall exclude supplements.
Section 4. Definition of Terms As used in this Guidelines:
(a) “NWPC” means the National Wages and Productivity Commission.

(b) “RTWPB” means the Regional Tripartite Wages and Productivity Board.
(c) “DOLE” means the Regional Office of the Department of Labor and Employment.
(d) “Cash Wage” means the minimum wage rates prescribed by law or wage order without deducting therefrom whatever benefits,
supplements or allowances which the employees enjoy free of charge aside from the basic pay.
(e) “Facilities” refer to articles or services provided by the employer for the benefits of the employee or his/her family but shall not
include tools of the trade of articles or services primarily for the benefit of the employer or necessary to the conduct of the employer’s
business. (Section 5, Rule VII, Implementing Rules of Book III, Labor Code).
The term shall include:
1. Meals;
2. Housing for dwelling purposes;
3. Fuel including electricity, water, gas furnished for the non-commercial personal use of the employee;
4. Transportation furnished to the employee between his home and work where the travel time does not constitute hours worked
compensable under the Labor Code and other laws;
5. School, recreation and sanitation when operated exclusively for the benefit of the worker or his family;
6. Medical and dental services rendered to the non-industrial cases; and
7. Other articles and services given primarily for the benefit of the worker or his family.
(f) “Facility Evaluation” refers to an evaluation conducted by the appropriate RTWPB to determine the fair and reasonable value of
facilities furnished by the employer to his/her employees.
(g) “Facility Evaluation Order” refers to the Order issued by the DOLE Regional Director as Chairperson of RTWPB authorizing an employer
to consider the monetary value of the facilities availed of as part of the wages of his/her employees pursuant to Article 97(f) of the Labor
Code.
(h) “Fair and Reasonable Value of Facilities” is the cost of operation and maintenance, including adequate depreciation plus reasonable
allowance (but not more than 5-1/2% interest on the depreciated amount of capital invested by the employer; provided that if the total
so computed is more than the fair rental value (or the fair price of the commodities or facilities offered for sale), the fair value shall be
the reasonable cost of the operation and maintenance. The rate of depreciation and depreciated amount computed by the employer
shall be those arrived at under good accounting practices. (Sec. 6, Rule VII, Implementing Rules of Book III, Labor Code)
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(i) “Supplements” constitute extra remuneration or special privileges or benefits given to or received by labourers over and above their
ordinary earnings or wages.
It shall include”
1. Emergency medical and dental services furnished by employer by virtue of the requirement of the Labor Code, as amended and its
Implementing Rules and Regulations;
2. Cost, rental and/or laundry of uniform where the nature of the business requires the employees to wear a uniform;
3. Transportation charges where such transportation is in incident to or necessary to the employment;
4. Shares of capital stock of the employee in an employer’s company;
5. Paid vacation, sick and maternity leaves; and
6. Tools of the trade or articles or services primarily for the benefit of the employer or necessary to the conduct of the employer’s
business.
(j) “Wages” means remuneration or earning, however designated, capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece or commission basis or other method of calculating the same, which is payable by an employer to an
employee under a written or unwritten contract of employment for the work done or to be done, or for services rendered or to be
rendered and includes the fair and reasonable value of board, lodging or other facilities customarily furnished by the employer to the
employee as determined by the Secretary of Labor.
Section. 5. Assessment and Accreditation. The NWPC shall develop a system of assessment and accreditation of private facility evaluators.
Accredited evaluators shall comply with the procedural requirements consistent with Rules II and IV of this Guidelines.
RULE II
CONDUCT OF FACILITY EVALUATION
Section 1. Filing of Application for the Conduct of Facility Evaluation
a. How filed. Application may be filed personally, by registered mail, or electronic mail (email) using NWPC-FE-Form-01. It shall be
accompanied by the following document:
1. Business permit for the current year issued by the appropriate government agency;
2. List of the company’s employees with their corresponding wages;
3. Job activities with their existing wage rates;
4. Method of payment of wages (e.g. pakyaw, takay, commission); and
5. Proof of notice of filing of application
Applications with incomplete documentary requirements shall not be accepted. If the application was sent through registered mail or e-
mail, it shall be returned upon the receipt using the Reply Form NWPC-FE Form-02 with all the submitted documents, indicating the
reason/s for non-acceptance of the application.
b. Who may file. The application may be filed by the union, worker or owner/manager or duly authorized representative of a micro,
small, or medium establishments in person, by registered mail, or by email. In case the application is filed by a union or worker, mere
application will suffice and the RTWPB shall immediately notify the owner/manager who shall be required to submit the documentary
requirements.
c. Where to file. The application shall filed with the RTWPB having the jurisdiction over the workplace using the NPWC-FE Form-01.
Applications filed with the DOLE Regional Office and field shall submit immediately be forwarded to the appropriate RTWPB.
d. When to file. Applications may be filed either before the introduction of the proposed facilities or at any time in the case of existing
facilities.
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Section 2. Actions on Application. The RTWPB secretariat shall, within 30 days from determination of the completeness of the application,
act on the same as follows:
1. Determine if the facilities sought to be valuated are among those included in the definition herein, otherwise, the RTWPB Secretariat
shall recommend to the DOLE Regional Director, in his capacity as Board Chairman, the denial of the application.
2. If the facilities are among those included as herein defined, the RTWPB shall:
a. Secure from the DOLE Regional Director an authority to Conduct a Meeting and Facilities Evaluation
b. Coordinate with the applicant-firm for schedule and confirmation of the meeting to ensure the attendance and participation of
management and workers’ representatives;
c. Meet with an equal number representatives from management and workers to discuss the details of the application with a view to
come out with a voluntary agreement on the conduct of facility evaluation.
d. Ensure that the Minutes of the Meetings are correctly recorded
e. Record relevant observations, e.g. working conditions, workers benefits, labor relations, and other concerns during the actual
evaluation of facilities in the company, for the information of the DOLE Regional Office.
f. In case of doubt on reasonable value of meals and facilities, conduct an actual price/cost validation against the prevailing market price
in the region.
g. The RTWPB Secretariat shall, after the FE Evaluation, conduct post or closing meeting to discuss the expected FE output to be delivered
by the Secretariat, and the roles and responsibilities of the workers and employer.
h. Submit to the DOLE Regional Director as RTWPB Chairman for his consideration, a post- evaluation report using NWPC-FE Form-03
together with the complete records/documents.
RULE III
DEDUCTIBILITY OF THE VALUE OF FACILITIES
Section 1. Deductibility of the value of facilities. In order that the fair and reasonable value of the facilities may be deducted from the
wages of employees, the following requisites must concur:
a. Facilities subject of valuation are customarily furnished by the employer;
b. Deductibility of the value of the facilities must have been voluntarily accepted in writing by the employee; and
c. Facilities must be charged at a fair and reasonable value.
Section 2. Standards for Fair and Reasonable Value of Meals. –For the value of meals to be deductible from the wages of employees, the
meals provided must be nutritionally adequate.
In determining the fair and reasonable value of meals, at least 30% of the actual cost shall be subsidized by the employer.
Section. Standards for Fair and Reasonable Value of Housing Facilities. For the value of housing facilities to be deductible from the wages
of the employees, the same must be used exclusively for the living quarters of employees.
In determining the fair and reasonable value of housing facilities, the total yearly expenses of the employer comprising of 5 ½%
of the depreciated amount plus the cost of operation and maintenance and payment of electric and water bills are deducted from the
total cost of expenses incurred in the construction or acquisition of the housing facility.
RULE IV
FACILITY EVALUATION ORDER
Section 1. Issuance of Facility Evaluation Order. The DOLE Regional Director shall issue a Facility Evaluation Order (NWPC-FE Form-04),
within five (5) days from submission by the RTWPB of its recommendation.
Section 2. Contents. The Facility Evaluation Order shall expressly state the following conditions, where appropriate:
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a. Voluntary acceptance of the facilities by the worker/employees.

b. Cost of each facility, e.g., breakfast, lunch, supper, snacks and lodging.
c. The amount to be charged based on the actual expenses incurred by the employer.
d. The meals actually served should be nutritionally adequate.
e. The deduction for housing/lodging facilities should not be more than the cost of rentals in the vicinity.
f. Unless the cost of living so warrants, the cost of facility in subsequent Orders shall not be more than the cost of the same
facilities previously fixed by the RTWPB in the same vicinity.
g. Where the facilities are given free of charge by the employer and there is no prior agreement to deduct the cost of said
facilities from the wages of the employees, the employer cannot subsequently charge the cost of the facilities or otherwise avail of the
order.
h. Acceptance of the reasonable rates deducted from the wages of the employees/workers should be written and voluntary.
Section 3. Duration of Facility Evaluation Order. The duration of a Facility Evaluation Order shall remain valid and effective unless sooner
revoked or suspended or revised or reviewed.
Section 4. Posting of Order. The employer and union/workers shall be furnished a copy of the Order. The employer is required to post a
copy of the Order in the bulletin board or in a conspicuous place in its establishment and shall submit a certificate of posting to the
RTWPB. The posting shall form part of the monitoring activity of the DOLE Regional Office.
RULE V
APPEAL
Section 1. Appeal to the DOLE Regional Office. Any party aggrieved by a Facility Evaluation Order issued may, within ten (10) days from
receipt thereof, appeal such Order to NWPC by filing a verified appeal with the RTWPB specifying therin the grounds relied upon, in two
(2) printed and legible copies.
Section 2. Grounds for Appeal. An appeal may be filed based on the following grounds:
a. Violation of procedures as set forth under Rule II, Section 2;
b. Serious error in computing the monetary value of the facility.
Section 3. Period to Act on Appeal. The NWPC shall decide on the appeal within thirty (30) days from receipt thereof.
Section 4. Effect of an Appeal. The filing of an appeal does not operate to stay the Facility Evaluation Order.
RULE VI
ENFORCEMENT
Section 1. Complaints for Non-Compliance of Facility Evaluation Order. Complaints for non-compliance with the Facility Evaluation Order
issued shall be filed with the appropriate DOLE Regional Office and shall be subject to enforcement proceedings under Article 128 and
129 of the Labor Code of the Philippines, as amended.
RULE VII
AVAILMENTS OF FACILITIES
Section 1. Provision of Facilities. The employer and the union/workers shall agree on the facilities that may be provided by the former to
the latter.
Section 2. Non-availment of Facilities. If the union/workers desire not to avail the facilities, the employer shall not be allowed to credit or
make deductions against the wages of its employees the value of said facilities.
RULE VIII
SUBMISSION OF REPORTS
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Section 1. Submission of Reports. The RTWPBs shall submit to the NWPC a monthly report (NWPC-FE Form 05) on the data of facility
evaluation applications acted upon including the studies conducted, for purposes of program monitoring and evaluation. The report shall
be submitted not later than the 10th day of the month preceding the reference month.
All Orders and this corresponding FE documentation should be filed at the RTWPB. One complete copy shall be sent to NWPC,
who shall maintain a database of all FE studies.
RULE IX
REPEAL AND SEPARABILITY
Section 1. Repeal and Separability. All existing rules, regulations or orders or any part thereof inconsistent with these amended
Guidelines are hereby amended or modified. If any part or provision of these Guidelines is declared unconstitutional or illegal, the other
parts or provisions shall remain valid.
RULE X
EFFECTIVITY
Section 1. Effectivity. This amended Guideline shall take effect fifteen (15) days after its publication in one newspaper of general
circulation.
Manila, Philippines, 01 April 2013.

2016 SPECTRA LABOR STANDARDS - Orals Purposes

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Copyright:

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2016 SPECTRA LABOR STANDARDS - Orals Purposes

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h a n g e Vi h a n g e Vi

Based on the outline by: Atty. Jefferson Marquez

Compiled By: KRB

Updated By: MFLH (2014 edition)

Updated BY: MCT (2015 edition)

Updated By: AppLe (2016 edition)

TOPIC 2: BASIC PRINCIPLES ..................................................................................................................................................19

TOPIC 3: THE RIGHT TO HIRE................................................................................................................................................34

DEPARTMENT ORDER NO. 04 ..............................................................................................................................................43

TOPIC 4: WAGES AND WAGE FIXING ...................................................................................................................................54

Societas Spectra Legis

CONCEPT OF WAGE AND SALARY...................................................................................................................................................................................54

TOPIC 5: VIOLATION OF WAGE ORDERS ..............................................................................................................................97

TOPIC 6: WAGE ENFORCEMENT AND RECOVERY ..............................................................................................................103

PROCEDURE ON RECOVERY OF WAGES AND SIMPLE MONEY CLAIMS ........................................................................................................................108

TOPIC 7: WAGE PROTECTION PROVISIONS & PROHIBITIONS REGARDING WAGES...........................................................137

TOPIC 8: PAYMENT OF WAGES ..........................................................................................................................................140

TOPIC 9: CONDITIONS OF EMPLOYMENT ..........................................................................................................................146

HOURS WORKED .......................................................................................................................................................................................................... 148

2014 DOLE BWC HANDBOOK ON WORKER’S STATUTORY MONETARY BENEFITS .......................................................................................................158

TOPIC 10: MINIMUM LABOR STANDARDS BENEFITS .........................................................................................................161

TOPIC 11: OTHER SPECIAL BENEFITS.............................................................................................................................177

TOPIC 12: JURISDICTION OF THE LABOR ARBITER .............................................................................................................193

TOPIC 13: THE 2011 NLRC RULES OF PROCEDURE.............................................................................................................207

THIRD PARTY CLAIMS ...................................................................................................................................................................................................272

TOPIC 14: OTHER IMPORTANT LABOR PROVISIONS ..........................................................................................................280

B. WORKER’S PREFERENCE ...........................................................................................................................................................................................323

C. ATTORNEY’S FEES & APPEARANCE OF LAWYERS .....................................................................................................................................................328

TOPIC 15: MISCELLANEOUS PROVISIONS...........................................................................................................................332

B. EMPLOYMENT OF WOMEN ......................................................................................................................................................................................341

CRIMINAL LIABILITY .................................................................................................................................................................................................................................343

C. EMPLOYMENT OF NURSING EMPLOYEES.................................................................................................................................................................354

D. EMPLOYMENT OF NIGHT WORKERS ........................................................................................................................................................................358

E. EMPLOYMENT OF CHILDREN ....................................................................................................................................................................................364

REVISED PENAL CODE .................................................................................................................................................................................................369

F. EMPLOYMENT OF DOMESTIC WORKERS ..................................................................................................................................................................371

G. EMPLOYMENT OF HOMEWORKERS .........................................................................................................................................................................398

H. EMPLOYMENT OF NON-RESIDENT ALIENS...............................................................................................................................................................401

Foreign Investments Act & Discussions........................................................................................................................................................................407

J. EMPLOYMENT OF ACADEMIC / NON-ACADEMIC PERSONNEL IN PRIVATE EDUCATIONAL INSTITUTION ................................................................411

K. EMPLOYMENT OF SENIOR CITIZENS .........................................................................................................................................................................412

M. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY ...................................................................................................................................................414

N. MIGRANT WORKER’S ACT/ RECRUITMENT AND PLACEMENT .................................................................................................................................424

TOPIC 1: THE APPLICABLE LAWS

NOTE: It is the workers or the working class who exerts or labors.

FOUR SYSTEMS OF LABOR (Sla-Ser-Free-Wage; Slasher Free Wage; S-S-F-W )

Article II, sec. 10 of the constitution

THREE FIELDS OF LABOR LAW (S-R-S)

1. Labor Standards Law –

2. Labor Relations Law –

Example: unionization, negotiation, dispute settlements

3. Labor Legislation or Social or Welfare Legislation –

OMNIBUS RULES AS AMENDED

SUPREME COURT DECISIONS

BASIS OF ENACTING LABOR LAWS (P-S-P-D)

Examples: Migrant worker’s act, retirement law, Art. Xix, sec. 19

3. PROTECTION TO LABOR CLAUSE

Example: Migrant Worker’s Act

Cite at least 5 International Labor Organization (ILO) Conventions:

LIMITATIONS IN THE ENACTMENT OF LABOR LAWS (P-E-N-D-O)

EQUAL PROTECTION CLAUSE

• Individuals similarly situated must be treated equally under the3 law.

PROHIBITION AGAINST INVOLUNTARY SERVITUDE