The Labor Code and The Dynamics Between Employees and Employers
The Labor Code and The Dynamics Between Employees and Employers
COVERAGE:
Compulsory:
Compulsory upon all employees not over
60 years of age and their employers
In case of domestic helpers, their monthly
income should not be less than one
thousand pesos
Compulsory upon such self- employed
persons as may be determined by the
Commission including but not limited to
the following (Sec 9-A):
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Voluntary:
Spouses who devote
full time to managing the
household and family affairs, unless they are also
engaged in other vocation or employment which is
subject to mandatory coverage, may be covered by
the SSS on a voluntary basis.
Filipinos recruited by foreign based employers for
employment abroad may be covered by the SSS
on a voluntary basis
Employees separated from employment may
continue to pay contributions to maintain his right
to full benefits (Sec. 11)
Self-employed with no income (11-A)
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BY AGREEMENT:
Any foreign government, international
organization,
or
their
wholly-owned
instrumentality employing workers in the
Philippines, may enter into an agreement with
the Philippine government for the inclusion of
such employees in the SSS except those
already covered by their respective civil
service retirement systems (Sec.8 (j (4).
Definition of Terms
EMPLOYER
Any person natural or juridical, domestic or
foreign, who carries on in the Philippines, any trade
business, industry undertaking or activity of any kind
and uses the services of another person who is under
his orders as regards the employment except the
Government and any of its political subdivisions,
branches or instrumentalities, including corporations
owned or controlled by the Government
Self- employed person shall be both the employer
and employee at the same time
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EMPLOYEE
Any person who performs services for an
employer in which either or both mental and
physical efforts are used and who receives
compensation for such services, where there is
an employer- employee relationship.
DEPENDENTS:
BENEFICIARIES
The dependent spouse until he or she
remarries, the dependent legitimate,
legitimated or legally adopted and
illegitimate children who shall be the
primary beneficiaries of the member
PROVIDED that the dependent illegitimate
children shall be entitled to 50% of the
share of the legitimate, legitimated or
legally adopted children.
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Benefits:
Monthly pension
Dependents pension
Retirement benefits
Death Benefits
Permanent disability benefits
Funeral Benefit
A funeral grant equivalent to Twelve
thousand pesos (P12, 000.00) shall be paid,
in cash or in kind, to help defray the cost of
funeral expenses upon the death of a
member, including permanently totally
disabled member or retiree.
Sickness benefit
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Remittance:
It shall be remitted within the first 10 days
of each calendar month following the
month for which they are applicable or
within such time as the Commission may
prescribe.
GOVERNMENT SERVICE
INSURANCE SYSTEM (GSIS)
RA 8291
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Definition of Terms:
Employer:
The national government, its political
subdivisions,
branches,
agencies
or
instrumentalities including GOCCs and
financial institutions with original charters, the
constitutional commissions and the judiciary
Employee or Member:
Any person receiving compensation while
in the service of an employer as defined herein,
whether by election or appointment,
irrespective of status appointment,
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Dependents:
The legitimate spouse dependent for support upon
the member or pensioner
The legitimate, legitimated legally adopted child,
including the illegitimate child who is:
unmarried,
not gainfully employed,
not over the age of majority,
or is over the age of majority but incapacitated
and incapable of self-support due to a mental or
physical defect acquired prior to age of majority
Parents dependent upon the member for support
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Primary Beneficiary:
The legal dependent spouse until he/she remarries
Secondary Beneficiary:
The dependent parents and subject to the restrictions
on dependent children, the legitimate descendants
Disability:
Any loss or impairment of the normal functions of the
physical and/or mental faculty of a member which
reduces or eliminates his/her capacity to continue
with his/her current gainful occupation or engage in
any other gainful occupation.
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Total Disability
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Benefits:
SEPARATION BENEFITS (SEC. 11):
Separation benefits are given to the:
The member resigns or separates from the
service after he has rendered at least three
(3) years of service but less than fifteen
(15) years or
The member resigns or separates from
office after he has rendered at least fifteen
(15) years of service and is below sixty
(60) years of age at the time of resignation
or separation.
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RETIREMENT BENEFITS
PERMANENT DISABILITY BENEFITS
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IN
THE
ABSENCE
OF
PRIMARY
BENEFICIARIES,
THE
SECONDARY
BENEFICIARIES SHALL BE ENTITLED TO:
FUNERAL BENEFITS:
It shall not be less than twelve thousand
pesos (P12,000.00) PROVIDED that it shall
be increased to at least eighteen thousand
pesos (P18,000.00) after five years and shall
be paid upon death.
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PRESCRIPTION OF CLAIMS
Claims for benefits under the Act except for life and
retirement shall prescribe AFTER 4 YEARS FROM THE
DATE OF THE CONTINGENCY.
JURISDICTION
GSIS shall have the exclusive and original jurisdiction
to settle any dispute arising under the Act and any other
laws administered by the GSIS.
Appealable under Rule 43 and 45 Of the 1997 Rules of
Civil Procedure. The appeal shall not stay the execution of
the order or award unless ordered by the Boards, CA, or SC
and the appeal shall be without prejudice to the special civil
action of certiorari when proper.
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SEC. 2.
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SEC. 3.
EMPLOYERS COVERED
- The Decree shall apply to all employers except to:
a. Distressed employers, - such as:
those which are currently incurring substantial
losses; or
in
the case of non-profit institutions and
organizations, where their income, whether from
donations, contributions, grants and other earnings
from any source, has consistently declined by more
than forty (40%) percent of their normal income for
the last two (2) years, subject to the provision of
Section 7 of this issuance;
b. The Government and any of its political subdivisions,
including GOCCs except those corporations operating
essentially as private subsidiaries of the Government
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c. Employers already paying their employees 13month pay or more in a calendar year of its
equivalent at the time of this issuance;
d. Employers of household helpers and persons in
the personal service of another in relation to such
workers; and
e. Employers of those who are paid on purely
commission, boundary, or task basis, and those
who are paid a fixed amount for performing a
specific work, irrespective of the time consumed
in the performance thereof, except where the
workers are paid on piece-rate basis in which
case the employer shall be covered by this
issuance insofar as such workers are concerned.
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SEC. 4.
EMPLOYEES COVERED
Except as provided in Section 3 of this issuance, all
employees of covered employers shall be entitled to
benefit provided under the Decree who are receiving
not more than P1,000 a month, regardless of their
position, designation or employment status, and
irrespective of the method by which their wages are
paid, provided that they have worked for at least one
month during the calendar year.
WHO ARE EXCLUDED FROM COVERAGE:
government employees
household helpers
employees paid purely on commission basis
employees already receiving 13th month pay
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SEC. 7.
EXEMPTION OF DISTRESSED
EMPLOYERS
Distressed employers shall qualify for exemption
from the requirement of the Decree upon prior
authorization by the Secretary of Labor.
SEC. 9.
ADJUDICATION OF CLAIMS
Non-payment of the thirteenth-month pay provided
by the Decree and these rules shall be treated as
money claims cases and shall be processed in
accordance with the Rules Implementing the Labor
Code of the Philippines and the Rules of the National
Labor Relations Commission.
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EXTENSION OF MATERNITY
LEAVE [ART 133 (b)]
the maternity leave shall be extended
without pay on account of illness medically
certified to arise out of the pregnancy,
delivery, abortion, or miscarriage, which
renders the woman unfit for work , unless she
has earned unused leave credits from which
such extended leave may be charged.
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PATERNITY LEAVE
(RA 8187 , July 5,1996)
Grants paternity leave of 7 days with full pay,
consisting of basic salary, to all married male
employees in the public and private sector.
Available only for the first 4 deliveries of the
legitimate spouse with whom the husband is
cohabiting; the term delivery includes childbirth,
miscarriage or abortion.
In the event that such leave was not availed of,
said leave shall not be convertible to cash.
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APPLICATION OF LEAVE:
Must be made:
within
a reasonable time from the
expected date of delivery by the pregnant
spouse.
within such period as may be provided
by company rules & regulations or
CBA.
prior application for leave shall NOT be
required in case of miscarriage.
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EMPLOYMENT OF MINORS
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NON-HAZARDOUS
WORK
OR
UNDERTAKING
one where the employee is not exposed
to any risk which constitutes an imminent
danger to his safety and health.
HAZARDOUS WORKPLACES:
where the nature of the work exposes the
workers to dangerous environmental
elements, contaminants or work conditions;
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END
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