UY, A.

LABOR 1 (is this diff from security of tenure as a labor

standard? Right mismo to then mechanisms lang
INTRODUCTION ung sa aspect ng labor relations? How they will
LABOR LAW CONCEPTS, CONTEXTS, AIMS resolve the issue )

Labor legislation Employee dismissal

- Statutes, regulations and jurisprudence

governing the relations between capital & Elementary rule in the law on labor relations
labor
*even a probationary employee is entitled to
- Provides certain employment standards security of tenure.*
and a legal framework for defining,
*Prior to the labor code, labor laws were
adjusting and administering the standards
scattered in more than 60 statutes.
and other incidents of employment/related
productive work relationship No line between labor standards & labor
relations in many business firms. (except in the
DIVIDED INTO : LABOR STANDARDS,
specialization of staff in HRDept)
LABOR RELATIONS

1. Labor standards
- Terms and conditions that employers must “employment relations”
comply with
- Employers are entitled to (a matter of legal cover both labor standards and labor relations
right) *Labor standards and labor relations overlap in
- Norms set by law that must be observed reality.
(standard/ substandard)
Ex. Grievance machinery
- Minimum requirements prescribed by
(in-house method to resolve an employee’s
existing laws, rules and regulations
complaint)
- related to wages, hours of work, cost of - Labor relations mechanism but the subject
living allowance, other monetary and of complaint is labor standards
welfare benefits including occupational, (unpaid overtime work, disciplinary action)
safety and health standards (jurisprudence)
Labor standards: material/ substance to be
processed
- All matters required/ fixed by law
Labor relations: mechanism that processes the
(standards in broad legal context)
substance
Ex. Minimum wage, employees’ right to organize,
Philippines’ “ labor relations law “ = US’ labor law
security of tenure?? (right to retain their jobs until a
lawful cause of dismissal occurs Philippines’ labor standards law = US’
employment law
2. Labor relations
Labor relations law Labor management relations
- Status, rights and duties, and the
institutional mechanisms that govern the - Covers a broad spectrum of activities
individual and collective interactions of - Concern relationship of employees to
employers ,employees/representatives. employers both union and non-union

Ex. Employment tenure issues and termination (search definition)

 UY, A.

Unionized employees generally cannot get - Refers to self-employed people and those
special or individualized treatment from the working in service and under the control of
employer. A non-unionized employee can another (regardless of rank/title/nature of
negotiate on their own behalf and an work)
employer is allowed to treat employees
differently  Ex. Messenger, manager

A.13 LC

Is “labor” different from “industrial relations”? ANY MEMBER OF THE LABOR FORCE,
WHETHER EMPLOYED/UNEMPLOYED IS
(theoretical question) A WORKER.
(practically interchangeable)

- labor relations for unionized companies ESSENTIALITY OF EMPLOYER-

- industrial relations for non-unionized EMPLOYEE RELATIONSHIP
companies.
Existence of employer-employee relationship
(Em-Rel) is required for an employee to be
- Labor relations to matters internal to labor
entitled to protection of/benefit from labor laws.
sector
- industrial relations to management-labor - Worker has to be an employee
relations - Not every worker is an employee

(is the owner considered a worker?)

labor
Employee
(physical toil)
- Salaried person working for another who
- Doesn’t exclude application of skill controls/supervises the means, manners,
- Skilled and unskilled labor method of doing the work
(cashier, unskilled worker) - Em-rel must exist for one to be an
employee
skill - Covered by labor laws and company
regulations
-familiar knowledge of any art/science

-united w/ readiness and dexterity in LABOR LAW & SOCIAL LEGISLATION

execution/performance/application of art/science
to practical purposes Social legislation

- Laws that provide particular kinds of

protection/benefits to society/segments in
WORK VS. LABOR
furtherance of social justice
Work (broader) - Labor laws are social legislation

- Covers all forms of physical/ mental Ex. Agrarian reform law

exertion/ both combined
SSS (social security system)
- For attainment of some object other than
recreation/amusement State insurance fund (cover work-related injuries &
occupational diseases)
Per se: in itself

WORKER VS. EMPLOYEE

(According to some authors)
Workers (broader)
 UY, A.

Labor laws directly affect employment

- Both a juridical principle and a societal
Social legislation governs effects of employment
goal.
(adell: IS LABOR LEGISLATION SIMILAR TO - Process and goal are inseparable because
SOCIAL LEGISLATION?) one is synergistic cause and effect of the
other.
IN SOME ASPECTS?
Juridical principle (prescribes equality of
Kase LL governs relations between capital and labor
the people, rich/poor before the law)
while SL governs labor and its effects to the society.

*insistence hardly makes things clear Societal goal (attainment of decent quality
of life of the masses through humane
Ex. Emergency medical treatment rendered at the productive efforts)
worksite to a worker is covered by labor law but
not by social legislation *legal equality opens opportunities that
Medical treatment rendered outside the strengthen equality and equality allows more
workplace to the same person for the same injury opportunities.
involves social legislation, not labor law.
(According to Dr. Jose P. Laurel. Calalang vs.
Williams)
How is medical treatment under A.162 of the labor
code is labor law but not social legislation, while SOCIAL JUSTICE IS
sickness benefit under SEC.14 of the social security - Neither communism nor despotism nor
law is a social legislation not labor law? atomism nor anarchy
- but the humanization of laws
- equalization of social and economic
LABOR LAW OBJECTIVES forces by the state so that justice in its
rational and objectively secular conception
may at least be approximated.
CONSTITUTIONAL GOALS OF FREEDOM - Promotion of the general welfare of the
FROM POVERTY people

What are labor laws for? Why do they exist?

- Labor code doesn’t have answer, Google

constitution does.
- Judged by contribution on the distribution of Atomism refers to the view that the main
component of society is the individual (i.e.
wealth
the 'atom'), and that these individuals are
Social justice self-interested, equal and rational.

- Aim and reason of labor laws Communism- all are owned by the public
- Poverty alleviation
Despotism- exercise of absolute power
- Legal and economic equality
cruelly .ruling in an oppressive way
(best manifested in freedom from poverty)
*visual alleviation of poverty is best Anarchy- state of disorder
evidence of social justice
*Starts with free and easy access to
education & economic opportunities - Adoption by the government of measures
*lack of educ and poverty perpetuate each that insure economic stability of all
other. component elements of society through
maintenance of proper economic and social
 UY, A.

equilibrium in the interrelations of the 1) More equitable distribution of opportunities,

members of the community, income, wealth
constitutionally, through the adoption of 2) Sustained increase in the amount of goods
measures legally justifiable, extra- and services produced by the nation for the
constitutionally, through the exercise of benefit of the people
powers underlying the existence if all 3) Expanding productivity as key to raising the
governments, on salus popula est suprema quality of life for all (esp the
lex” underprivileged)

(SC pronouncement)

- [Link] doesn’t champion division of CONSTITUTIONAL BASIS OF LABOR LAW

property/equality of economic status.
- Consti prescribes the boundaries of labor
- What it and consti guaranty are (5)
and social laws
Social justice guarantees
(because economic system and governance
1) equality of opportunity
are inscribed here)
2) equality of political rights
3) equality before the law
4) equality between values given and
received - Phil. Consti allows property ownership
5) equitable sharing of the social and (Establishments of private business, right of
material goods on the basis of businesses to expansion and growth)
efforts exerted in their production.
- Consti recognizes labor as primary
(google) economic force entitled to equal
- Social justice is a concept that all people protection of the laws.
should have equal access to wealth, health, *Filipinos can have privately owned
well-being, privileges, and opportunity. properties/ vast tracks of private lands and at
the same time million other Filipinos have
1987 consti gives fundamental significance to social nothing.
justice.

[Link] SEC.9 PHILIPPINE ECONOMIC SYSTEM

DECLARATION OF PRINCIPLES AND STATE *legal system of substantive and procedural law is
POLICIES interlocked w/ economic system.

“The state shall promote a just and dynamic social Economic system
order that will ensure the prosperity and
independence of the nation and free the people from - Goal, framework, methods of economic
poverty. “ activities
- More than just a way to see patterns
How may freedom from poverty happen?
Fundamental concern of economics: material
Through policies that: standard of living of society as a whole and how
that’s affected by particular decisions made by
1) Provide adequate social services
individuals and institutions.
2) Promote full employment
3) Rising standard of living - Consequences matter more than intentions
4) Improved quality of life for all - Not just immediate consequences but longer
run repercussions of decisions, policies,
institutions
The goals of the national economy
 UY, A.

*Wage labor and employment contracts are

widespread in private firms.

Economic policy
PRIVATE ENTERPRISE
- government policy that weakens/strengthens
the managing ability of businesses *fundamental specifications of goals in our consti =
- every law that promotes/hinders ways for fundamental provisions that recognize and encourage
business to expand private enterprises
- any law that extricates/buries the poor in
(adell: w/o private enterprises that serve as the
poverty
foundation of production system, our economic
*law and economics are not 2 separate coins system will be dysfunctional?)

2 sides of the same coins and each side consists of A II, SEC. 2O.
thought expression and impact with ill-defined
“the state recognizes the indispensable role of the
defining lines
private sector, encourages private enterprise and
*labor laws are instruments of poverty reduction provides incentives and needed investments.”

- not independent sets of laws *Creation of opportunities has to be based on

- embedded in country’s legal and economic initiative
system - promotion of social justice shall include
- broad structure (allows and constricts what the commitment to create economic
labor laws can initiate/pursue) opportunities based on freedom of initiative
and self-reliance.
(connected)
[Link] system characterized:
*the consti allows state to regulate workers-
(Gerardo P. Sicat) employers relations but it also recognizes the right
of enterprises to reasonable returns on
*capitalist economic system w/many features of
investments and to expansion and growth.
regulation and welfare laws
*to achieve these goals, all sectors of the economy &
mixed economy
all regions shall be given optimum opportunity to
regulated capitalism develop (social justice ba yung goal)

*basic foundation of the production system is private

ownership of enterprises
Encouraged to broaden the base of their
ownership

(Geoffrey M. Hodgson) 1) Private enterprises

2) Corporations
Conceptualizing capitalism 3) Cooperatives
4) Similar collective organizations
*private property is the first in his list of
characteristics of capitalism
LABOR LAW AS CIVIL LAW
*legal system supports widespread individual rights
and liberties to own, buy and sell private property. - Labor laws are part of civil law
*private ownership of the means of the production by - Labor laws apply to civil rights and human
firms producing goods and services for sale in pursuit relationship in work
of profit are widespread. - Civil law applies to workplace relations
 UY, A.

Work relations *written rules and unwritten precepts have merged

(Duty, honesty good faith)
(economic and human relations = basic subjects
of the civil code, A. 19 TO A. 36) - What used to be unwritten precepts are now
recognized in written statutes
Civil law
- Stated in civil code
- Deals w. rights and relations of persons as
equity, honesty, good faith
individuals/members of society
- Broad branch of law - carry character and binding force of written
rules
Covers:
- enforceable by judicial orders
1) Status/ relations of person inside/outside - courts became courts of both law and
of the familu equity
2) Property ownership and related rights
CIVIL CODE
3) Obli-con/ obligations of contracts
4) Liabilities for quasi-crimes RA NO.386
5) Damages
6) Contractorships & other commercial - role of general principles of law which are
arrangements largely based on equity
7) Prescription
A.10 NCC
Contract of labor (Civil code) = employment contract
“In case of doubt in the interpretation/application of
A.1700 laws, it is presumed that the lawmaking body
intended right and justice to prevail.”
"The relations between capital and labor are not
merely contractual. They’re so impressed w/public Philippine laws= repositories of moral laws
interest that labor contracts must yield to the common
- provides various kinds of proscriptions
good.”
against immoral conduct
Independent contractorship = contract for a piece of
history of law: gradual merger of 2 systems of
work (A.1713- 1731)
jurisprudence

1) law
ENFORCEABILITY OF RULES OF EQUITY 2) equity

Philippine legal system BUSINESS OWNERSHIP & MANAGEMENT

OF PEOPLE
- Mixture of civil law and common law rules
and principles *property ownership includes the right to use
- Spanish colonization planted civil law property and dispose it. (civil law)
system
- right doesn’t apply to employees because
- American rule brought common law system
they aren’t property.
Civil law system - Employees have right upheld in law and
equity
- Written formulations by the legislature - Can be managed but can’t be owned
(statutes?) - Property law can’t apply to people so labor
Common law Precepts/principles laws are developed

- Judge-made rulings based on and retained in

mores and traditions Civil law on human relations
 UY, A.

- Actively operates at the workplace and lockouts, closed shop, wages, working
(how is this diff from labor law?) conditions, hours of labor and similar subjects.”
- First 8 articles should be reiterated in HRM
A. 1701 NCC
policy esp. 3 principles of equity.
“ neither capital nor labor shall act oppressively
against the other, or impair the interest/convenience
of the public.”

3 principles of equity Applicable to labor cases

A. 19 (provisions of NCC)

PRINCIPLE OF ABUSE OF RIGHT 1) Wages

2) Contracts
Every person must, in the exercise of his rights 3) Waivers
and in the performance of his duties, act 4) Preference of workers’ claims
w/justice, give everyone his due and observe 5) Damages
honesty and good faith. 6) Fixed-period employment
A. 20 SPECIAL LABOR LAWS
-contrary to law - Labor laws not found in the labor code
Every person who, contrary to law, Ex. SSS LAW
willfully/negligently causes damage to another,
shall indemnify the latter for the same. Sexual harassment law

A. 21 Kasambahay law

-contrary to morals, good customs, public policy

Any person who willfully causes loss/injury to SIGNIFICANCE OF FOREIGN RELATIONS

another in a manner that is contrary to morals,
Industrial peace act / IPA
good customs or public policy shall compensate
the latter for the damage. - Precursor of the present labor relations
*law and equity permeate [Link] laws law
- Modeled after US laws (American court
-relationship among workers and managers, decisions influence our courts’ rulings)
capitalists-investors has to be governed by
fairness/ good faith/ justice *SC ruled that where our labor statutes are based
upon are in foreign jurisdiction.
Fairness (justifies grants of financial assistance to an
employee who was dismissed on ground of neglect - Decisions of high courts in those
but whose many years of service was satisfactory and jurisdictions construing and interpreting the
unblemished.) act should receive the careful attention of
this court in the application of our own law.
*civil code NOT labor code, describes the nature of
labor-management relations (Cerezo vs. Atlantic Gulf and Pacific co.)

A.1700 NCC

“ the relations between capital and labor are not Labor code provisions similar to Industrial
merely contractual. They’re impressed w/public Peace Act
interest that labor contracts must yield to the common 1) Employer-employee relations
good. Therefore such contracts are subject to special 2) Unfair labor practices
laws on labor unions, collective bargaining, strikes 3) Bargaining unit
 UY, A.

4) Duty to bargain 2) Right to organize

5) Strikes and lockouts 3) Collective bargaining

*court rulings construing the IPA are still applicable

to the labor code provisions unless there’s a
substantial statutory departure. ILO Core Conventions

A.8 NCC May 1995

“Judicial decisions applying/ interpreting the laws/ - Campaign to achieve universal ratification
the consti form part of the legal system of the of 7 core conventions launched by ILO
Philippines. “ 1999
INTERNATIONAL ASPECT - 8th convention
PH is a member of ILO 8 core conventions
- PH subscribes to the fundamental principles - Fundamental to the rights of human beings
on which ILO is based at work
fundamental principles - Irrespective to the level of development of
member states
1) Labor is not a commodity - Rights that are precondition for all other
(law/material that can be sold, what is it rights
then?)
( Why is labor not a commodity? People 1) Forced labor convention
cant be sold? ) 1930
No.29
2) Freedom of expression & of 2) Freedom of association and protection of
association are essential to sustained the right to organize convention
progress 1948
No.87
3) Poverty anywhere constitutes a danger 3) Right to organize and collective
to prosperity everywhere bargaining convention
1949
4) War against want requires to be No.98
carried on w/ unrelenting vigor within 4) Equal remuneration convention
each nation, and by continuous and 1951
concerted international effort (Clear No.100
out) 5) Abolition of forced labour convention
1957
No.105
International Labour Organization (ILO)
6) Discrimination convention
- UN specialized agency (employment and occupation)
- seeks the promotion of social justice and 1958
internationally recognized human and No.111
labor rights 7) Minimum age convention
- Formulates international labor standards 1973
(Form of conventions and recommendations No.138
setting minimum standards of basic labor 8) Worst forms of child labour convention
rights) 1999
No.182
basic labor rights
RATIFICATION GENERALLY NEEDED
1) Freedom of association
 UY, A.

- ILO are binding only for those member- (ARTICLE 2)

states that ratify them
Effective 6 months after its promulgation
EXCEPTION
(so nov. of 1974?)
- 1999
Labor
- ILO adopted a declaration on fundamental
principles and rights at work concerning an (sometimes means)
obligation of all ILO members to respect
and promote fundamental rights even if - Service rendered as part played in
they haven’t ratified 8 conventions. production of wealth
- Include supervision of work

Labor in labor code

- Work and work relationship

CHAPTER I - Any economically productive application
GENERAL PROVISIONS of physical, mental and material
resources
(ARTICLE 1) - (means work and doesn’t exclude work of
business owners and managers)
LABOR CODE OF THE PHILIPPINES
Labor code shows:
LABOR CODE
Interplay of owners of mental, physical and
P.D. NO. 442
material resources
- Set of substantive and procedural laws
- Interdependence permeates the code
- Prescribe the principal rights and
responsibilities of industrial participants Industrial relations system

3 actors
- Institute social justice -employees
- Lays down fundamental rights and
correlative obligations of employers- -employers
employees
-government agencies
(work days, work hours, wage and wage
protection, validity of dismissal, process of
unionization, collective bargaining)
- Not one -sided *LC embodies industrial law
(if yes, unconstitutional)
- Deals w/concerns of industrial actors
BOR. A.I Context of the labor code
“No person shall be deprived of law, liberty
and property w/o due process of law, nor - Societal
shall any person be denied the equal - Problems arising from unequal distribution
protection of the laws. “ of economic power and wealth

*Substantive rights are enforceable through Socio-economic objective = well being of the
procedures prescribed in LC people

- Devised by parties themselves/ government - Mission to uplift living condition of the

as regulator of employment relations masses
 UY, A.

- Lc help spread economic opportunities - In line with prescription (see below) of

and equality/ inclusive growth COMPREHENSIVE EMPLOYMENT
STRATEGY MISSION OF THE
INTERNATIONAL LABOR
Instruments of socio-economic development ORGANIZATION (RANIS REPORT)
(define socio economic development) Function of employment generation and economic
Labor code expansion:

Labor laws Elevation of real wages, incomes and living

standard
*law can not be divorced from ethics and economics
*approval of LC was long and tortuous.

- Gather invaluable contributions from

BIRTH OF THE LABOR CODE different bureaus
1) Department of labor
- 1968 (writing of labor code)
2) Department of industry
- April 28, 1973 (LC was ratified) 3) Board of investments
By National Tripartite Congress 4) UP law center
- May 1, 1973 (Submitted to Pres Marcos) 5) IBP
- May 1, 1974 (Signed into law) 6) Personnel management association of the
(ENACTED) Philippines (PMAP)
LABOR DAY 7) National economic and development
INTERNATIONAL LABOR DAY authority (NEDA)
8) Trade union centers
- 7 times of drafting and redrafting
- After ratification and submission, it LABOR LAWS BEFORE THE PASSAGE OF
underwent several revisions. LABOR CODE
- Months of silence followed.
- Around 60 laws
- NOV 1, 1974 (TOOK EFFECT)
- some are still relevant because the rationale/
P.D NO. 570-A policy is carried over to the LC
- court rulings remain controlling
- It resurfaced and loaded w/ extensive - Most are already abrogated
changes
- Made public, signed, and declared to take (So under the labor code na? )
effect on the same day.
ACT. NO. 1874
- No prior announcement, no prior
publication. EMPLOYER’S LIABILITY ACT
- Instance of Dictatorial lawmaking
JUNE 19, 1908
(So not PD 464)
PHILIPPINE LEGISLATURE
Mr. Blas F. Ople (Father of labor code)

[Link]. 2549
Objective of labor code
PROHIBITED PAYMENT OF WAGES IN NON-
- Not merely to consolidate scattered CASH FORM
provisions (passed before, during and after
the commonwealth)
- To reorient these provisions to the needs ACT. NO. 2071
of economic development and justice.
 UY, A.

PROHIBITED SLAVERY/ INVOLUNTARY 1953

SERVITUDE
- Modeled after US labor-management
relations act of 1947/ TAFT-HARTLEY
ACT
R.A. NO. 1054
- Amended NATIONAL LABOR
REQUIRES EMERGENCY MEDICAL RELATIONS ACT/ WAGNER ACT
TREATMENT FOR EMPLOYEES
basic principles of NLRC ACT OF US -> Industrial
peace act -> indirectly to labor code

C.A. NO. 444 -Commonwealth act BLUE SUNDAY LAW

8-HOUR LABOR LAW R.A. NO. 946

USED TO FORBID COMMERCIAL,

INDUSTRIA, AGRICULTURAL ENTERPRISES
C.A NO. 103 TO OPEN ON ANY SUNDAY, CHRISTMAS
DAY, NEW YEAR’S DAY, HOLY THURSDAY,
COURT OF INDUSTRIAL RELATIONS
GOOD FRIDAY
- Precursor of NLRC/ NATIONAL LABOR
Rationale: Sundays & legal holidays are set aside
RELATIONS COMMISSION
by law as days of rest,
- Investigate, decide and settle all disputes
between employers and employees Life, exisyence and happiness of a person don’t
- depend only on satisfaction of his physical needs.

NATIONAL LABOR RELATIONS Moral, intellectual and spiritual needs are

COMMISSION imperative also.

P.D. NO. 21 (yet, abor code made Sunday as an ordinary

working day)
(CIR AND NLRC COMPARE AND
CONTRAST)

What is the distinction between the jurisdiction of R.A NO. 1052

the Labor Arbiters and the NLRC?
R.A NO.1787 (AMENDED)
The NLRC has exclusive appellate jurisdiction on all
TERMINATION PAY LAW
cases decided by the Labor Arbiters. The NLRC does
not have original jurisdiction on the cases over which Just causes for terminating an employment w/o a
Labor Arbiters have original and exclusive jurisdiction definite period
(see above enumeration). If a claim does not fall
Allowed employers to separate an employee by
within the exclusive original jurisdiction of the Labor
simply serving a 15-day notice per year of service
Arbiter, the NLRC cannot have appellate jurisdiction
thereover. Or by paying an equivalent separation pay

Security of tenure

R.A. NO. 875 - Existent back then

- protected now by consti & labor code
INDUSTRIAL PEACE ACT

MAGNA CARTA OF LABOR

 UY, A.

- Art.3 forbids discrimination

- Commands state to afford protection to labor
(ARTICLE 3) - Ensure equal economic opportunities
DECLARATION OF BASIC POLICY Range of discriminants
The State shall afford protection to labor, promote 1. Sex
full employment, (SOCIO-ECONOMIC GOALS) 2. Race
3. Creed
ensure equal work opportunities regardless of sex, 4. Marital status
race or creed (NONDISCRIMINATION) 5. Disability
6. Union membership
and regulate the relations between workers and
7. Age
employers
[Link], SEC 3,1987 CONSTI
LABOR LAWS & SOCIAL ECONOMIC
GOALS (under social justice and human rights)

- Not a statement of goals but policy Related to ARTICLE 3 LC

directions towards goals
Section 3. The State shall afford full protection to
Labor laws labor, local and overseas, organized and
unorganized, and  promote full employment and
- Significant in nation’s economic life equality of employment opportunities for all.
- Explain why a nation is poor/prosperous
- Fall under [Link] (broad statement that rules out discrimination)

Goals of the national economy It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
(route to social justice) and peaceful concerted activities, including the right
to strike in accordance with law. They shall be
(Are these also the goal of labor law since labor law entitled to security of tenure, humane conditions of
= social legislation?) work, and a living wage. They shall also participate
in policy and decision-making processes affecting
1) More equitable distribution of opportunities, their rights and benefits as may be provided by law.
income, wealth
2) Sustained increase in the amount of goods The State shall promote the principle of shared
and services produced by the nation for the responsibility between workers and employers and
benefit of the people the preferential use of voluntary modes in settling
3) Expanding productivity as key to raising the disputes, including conciliation, and shall enforce
quality of life for all (esp the their mutual compliance therewith to foster industrial
underprivileged) peace.

The State shall regulate the relations between

(Macroeconomists Gregory & Stuart) workers and employers, recognizing the right of
Legal system, together w/customs, business orgs, labor to its just share in the fruits of production and
the right of enterprises to reasonable returns to
property ownership, form part of the ECONOMIC
investments, and to expansion and growth.
INSTITUTIONS which define an ECONOMIC
SYSTEM.
Discrimination
- Legal system affects choice of other
institutions and also economic - Any distinction, exclusion, preference
performance
- Made on the basis of race, color, sex,
religion, political opinion/ social origin
NON DISCRIMINATION
 UY, A.

- Has the effect of nullifying/impairing - Court rejected the employer’s contention

equality of opportunity/ treatment in that the cause of dismissal was dishonesty
employment/occupation
 STAR PAPER CORPORATION VS.
R.A NO. 9710 SIMBOL

MAGNA CARTA OF WOMEN  PROHIBITS MARRIAGE BETWEEN

CO-EMPLOYEES
Discrimination against women
- Employee is compulsorily required to resign
- Act/omission including law,policy, from his job
administrative measure/practice
- Invalid, discriminatory
- Directly/indirectly excludes/restricts women
in the recognition of their rights & access to BFOQ
& enjoyment of opportunities, benefits or
privileges Bona Fide Occupational Qualification

Measure/practice of general application = VALID SCREENING OUT

discrimination against women
- Exception to the no-discrimination rule
- If fails to provide for mechanisms to
offset/address sex/gender-based
disadvantages/limitations of women - Employer can justify why a particular
attribute is a requirement of the job/position
result of which
- Selection on the basis of such specific
attribute is legal (non-discriminatory)
- women are denied in the recognition &
protection of their rights
*the specification seems to be a device to
exclude certain people, screening out may be
- Access to and enjoyment of opportunities, justified.
benefits, privileges
(like sa doctors? IT? Chef? Why maghahire if di
- Women shown to have suffered the greater naman knowledgeable about med)
adverse effects of such measure
*Particular reqs of the job would justify the
Example of discrimination : Invalid policy requirement that a person must be ------. But no
on the ground of a general principle. (desirability
 PT & T VS. NLRC of spreading work in the workplace?)

 MARRIED WOMEN NOT ACCEPTED - Requirement is valid if it reflects an

inherent quality reasonably necessary
- Company’s policy of not accepting married for satisfactory job performance.
women was not justified by “dishonesty” in
disclosing true civil status.

- Employee was terminated on the ground of  YRASUEGUI VS. PHILIPPINE

dishonesty because her true civil status AIRLINES
(married) was discovered.
 BFOQ IS APPLIED
- Policy and dismissal illegal
 UY, A.

- Obesity of flight attendant 1. Employer adopted the standard for a

purpose rationally connected to the
- Weight exceeds the limit of company’s performance of the job
hiring policy
2. Adopted the standard in an honest and good
- Court upheld the dismissal faith belief that it’s necessary to the
fulfillment of that legitimate work-related
purpose
*because of BFOQ, employer may be allowed to
engage in unlawful form of discrimination when
his action is: 3. Standard’s reasonably necessary to the
accomplishment of the legitimate work-
related purpose
- Necessary to the normal operation of a
business
to show that the standard is reasonably necessary:
- If religion, sex, national origin can be
1. Must be demonstrated that it’s impossible to
shown to be necessary for the job, BFOQ
accommodate individual employees sharing
exception can be made.
the characteristics of the claimant w/o
imposing undue hardship upon the employer
To determine if a policy in hiring is (?)
discriminatory/legal:
(undue hardship kase ififilter out ? Like dapat
1. Ascertain whether the discrimination is ganito and ganyan ung makuha, ung marunong
necessary to the normal business operations sa machine chuchu. Pag di marunong, edi bye.
Takes effort na ifilter out)
2. Category denied inclusion is uniquely
unsafe (?)

(Unsafe kase di nameet ung particular job ANTI-AGE DISCRIMINATION ACT

reqs?)
RA. NO. 10911
*if religion, sex, nationality cam be shown to be
necessary to the job, bfoq exception can be made.
JULY 21, 2016

- Prohibits discrimination against any

MEIORIN TEST individual in employment on account of age

(Yrasuegui case) - Senior citizens/retirees remain employable

& entitled to statutory monetary benefits
3-step test in determining whether an employment
policy is justified
- Applies to all employers, publishers, labor
contractors/ subcontractors, and labor
- Additional justification to BFOQ exception organizations (WON registered)

- Whether an employment policy is justified. DOLE DEPARTMENT ORDER NO.170

- Employer can justify the impugned standard - Implementing rules

by establishing balance of probabilities
PROHIBITIONS
Balance of probabilities
a. Unlawful for an employer to:
UY, A.

1. Print/publish/ cause to be printed or c. Unlawful for labor organization

published, in any form of media
including the internet, 1. Deny membership to any individual
because of age
any notice of advertisement relating
to employment suggesting 2. Exclude from its membership any
preferences ,limitations, specifications individual because of age
and discrimination based on age
3. Cause/attempt to cause an employer
2. Require the declaration of age/ birth to discriminate against an individual
date during the application process in violation of the rules (what rules?
(what if BFOQ?) Labor org?)

d. Unlawful for a publisher to:

3. Decline any employment application 1. Print/publish any ntoice of

because of the individual’s age advertisment relating to employment
(depends?) suggesting preferences,limitations,
specifications and discriminations
based on age.

4. Discriminate against an individual in

EXCEPTIONS
terms of compensation, terms and
conditions/ privileges of employment
on acc of individual’s age Lawful for an employer to set age limitations

1. Age is a BFOQ reasonably necessary

in the normal operation of a business/
where differentiation is based on
5. Deny employee’s promotion/
reasonable factors other than age.
opportunity for training because of
age

2. Intent’s to observe bona fide seniority

system that’s not intended to evade
purpose of the rules.
6. Forcibly layoff an employee/worker
because of old age

3. Intent is to observe the term of bona

7. Impose early retirement on the basis
fide employee retirement/ voluntary
of such’s work
early retirement plan consistent
w/purpose of the rules.
b. Unlawful for labor contractor/
subcontractor
Provided that such retirement plan is
in accordance w/Labor code/ other
1. To refuse to refer for employment / related laws
discriminate against any individual
because of his age
4. Action’s duly certified by the DOLE
secretary after consultation
 UY, A.

w/stakeholders in accordance w/the - Working man’s welfare is the primordial &

purpose of the rules paramount consideration

*employer who invokes the qualifications/exceptions - Article 4 has liberal and compassionate
provided shall submit a report prior to its spirit of the law
implementation to DOLE regional office (which has
jurisdiction over the workplace) - To extend decree’s applicability to a greater
number of employees
- Submission shall be a presumption that the
age limitation is in according w/the rules - to enable them to avail the benefits under
unless proven otherwise by the courts. the law

- Failure to submit give rise to the - in consonance w/state’s avowed policy to

presumption that employer isn’t allowed to give maximum aid & protection to labor
set age limitation.
SC adopts the liberal approach
INTERDEPENDENCE: CONSTITUTIONAL
BALANCING OF RIGHTS
-> favors the exercise of labor rights
- Not to favor labor and prejudice capital
->Constitution’s protection to labor and
social justice provisions, labor laws, rules
- Inutile w/o the other = interdependent and regulations implementing the
constitutional mandate
Ex. Promotion of full employment = promotion
of job opportunities through success and CONCERN FOR LOWLY WORKER
expansion of private enterprise
Lowly worker
Basic policy:
- Menial work
Balance/coordinate rights and interests of
both workers and employers cc
- Not well-compensated
- Shared responsibility of workers and
- Low status
employers

REASON OF GREATER PROTECTION OF

- right of enterprise to reasonable returns on
EMPLOYEES
investment and to expansion and growth

- Greater supply than demand for labor

(ARTICLE 4)

CONSTRUCTION IN FAVOR OF LABOR - Need for employment by labor comes from

vital/desperate necessity
All doubts in the implementation & interpretation of
the provisions of this code , including its IRR, shall - An employee who waives (in advance) his
be resolved in favor of labor. right/ any benefit he’s entitled to is
presumed to act under the forceful
intimidation of urgent need.
INTERPRETATION AND CONSTRUCTION
GUARANTEED BASIC RIGHTS OF
LABORER’S WELFARE; LIBERAL
WORKERS
APPROACH
(ACCORDING TO 1987 CONSTI)
 UY, A.

CONSTI PROTECTS THE RIGHT OF WORKERS ARTICLE 211

AND PROMOTE THEIR WELFARE
To encourage a truly democratic method of
- Consti is pro-labor but recognizes the regulating the relations between the employers and
indispensable role of private sector (?) employees by means of agreements freely entered
into through collective bargaining, no court or
- Police power as basis administrative agency or official shall have the power
to set or fix wages, rates of pay, hours of work or
other terms and conditions of employment, except as
1. To organize themselves
otherwise provided under this Code.

2. Conduct collective bargaining/ negotiation

Justice = facts + applicable law + doctrine
w/management
MOST FUNDAMENTAL MANAGEMENT
3. Engage in peaceful concerted activities
RIGHTS
(strike in accordance w/law)
1. RIGHT TO ROI
4. Enjoy security of tenure
- Right to make profit/ surplus
5. Work under humane conditions

- Creates jobs and improves workers’

6. Receive a living wage
lot
7. Participate in policy and decision- making
process affecting their rights & benefits - Consistent w/policy of state to fill
(provided by law) the gap between
UNDERPRIVILEGED
WORKINGMAN & MORE
MANAGEMENT RIGHTS AFFLUENT EMPLOYERS

- Not every dispute will be decided in favor of Balance in favor of the working man =
labor right of employer to protection of his
property
- Management has its own rights
2. RIGHT TO PRESCRIBE RULES
- Courts often decline to interfere in
legitimate business decisions - Make reasonable rules and
regulations to govern employees
- Labor laws discourage interference in
employers’ decisions when it comes to - Part of contract of employment
conduct of their business
- Company policies and regulations
*NO MANAGERIAL AUTHORITY IN are binding and valid (on both
LABOR ARBITERS/ DIVISIONS OF NLRC/ parties)
COURTS
(unless contrary to law/ grossly
- Terms and conditions of employment oppressive)
(determined by employer= owner &
manager)
3. RIGHT TO SELECT EMPLOYEES
- Not vested in the government
- Right under the law to full freedom
in employing any person
LABOR RELATIONS POLICY, LABOR CODE
 UY, A.

- Person who’s free to accept 1987 CONSTI

employment
Right to own and operate economic enterprises is
- Wage and conditions agreeable to subj to duty of state to promote distributive justice
them. and to intervene when common good demands.

(except if restricted by valid MANAGEMENT PREROGATIVE

statute/contract)
- Self-deceiving term
4. RIGHT TO TRANSFER/ DISCHARGE
EMPLOYEES - Management isn’t
absolute/exclusive
- Right to transfer, reduce, lay off
personnel - If absolute, then purpose of labor
laws will not be achieved.
- To minimize expenses
Doctrine of Management Prerogative
- To insure the stability of the
business/ close it - Employer has the inherent right to
regulate, according to his own
- Done in good faith and due to discretion & judgment, all aspects
causes beyond control of employment.

RESTRICTIONS TO MANAGEMENT RIGHTS Including:

1. LAW o Hiring

- Prescribes rules of conduct o work assignments

- Liability arises when transgressed o working methods

2. CONTRACT : o time,place,manner of work

INDIVIDUAL/COLLECTIVE
o work supervision
- Contracts are laws too
o transfer of employees
- When a person signs a contract.
He’s in effect signing a law. o lay-off of wprkers

3. GENERAL PRINCIPLES OF FAIR o discipline

PLAY AND JUSTICE
o dismissal
- In absence of law/ contracts, above
is applicable
o recall of employees

Purpose: Balance conflicting interests of labor and

management
ARTICLE 19, NCC

- Both stand in equal footing

A right when abused becomes a legal wrong.
 UY, A.

- Management prerogatives cant - Court declared those rulesregs

defeat this very purpose of labor and policy instructions null and
laws void.

ARTICLE 5 - Labor sec. exceeded his rule-

making authority (diff from law-
RULES AND REGULATIONS making)

The DOLE and other [Link] charged w/ *if an administrative interpretation takes away
administration and enforcement of this code/ any of benefit granted by law = beyond one’s power
its parts shall promulgate the necessary
implementing rules and regulations. ARTICLE 6

Rules and regs shall becomes effective 15 days after APPLICABILITY

publication.
All rights & benefits granted to workers under this
DOLE shall make rules and regulations to code shall, except as may otherwise be provided
implement LC herein, apply alike to all workers, whether
agricultural/ non-agricultural.
- Administrative bodies enforce the
law APPLICABILITY TO GOVERNMENT
CORPORATIONS
*administrative regulations & policies enacted by
[Link] to interpret the law - Whether the code applies and
jurisdiction of [Link] labor extends
Which they’re entrusted to enforce, have the force of to government corporations
law (Admin regulations)
Earlier
WHEN INVALID?
- Employees of goccs, whether
- Rule/regulation promulgated by chartered by congress/ created
admin. body (DOLE?) to under corpcode
implement a law
- Governed by CIVIL SERVICE
(in excess of its rule-making LAW and not by LABOR CODE
authority = void )
Present

- CIVIL SERVICE embraces all

Ex. RULES AND REGULATIONS branches, subdivisions,
IMPLEMENTING A.94 OF LC instrumentalities, and agencies of
the government including GOCCS
+ POLICY INSTRUCTIONS NO.9 w/original charters.

- Limited the entitlement ro holiday GOCCS w/ORIGINAL CHARTER

pay to daily-paid employees only
- Corporation chartered by special
- But the law says “every worker law from congress
shall be entitled to holiday pay.
CORPORATION ORGANIZED UNDER
CORPORATION CODE/ GENERAL
CORPORATION LAW
 UY, A.

Test whether GOCC is subject to Civil service law: Government agency/ instrumentality
MANNER OF CREATION
- means by which a government acts
- Civil service rules = gocc created
by congress - through which certain gov. function
is performed
- Labor code = gocc under general
corporation law - authority to which the state
delegates government power for
Labor code – applies to government corporation performance of state function
incorporated under the CORPORATION CODE
ex. NATIONAL PARKS DEVELOPMENT
PNOC-EDC COMMITTEE

PHIL. NATIONAL OIL CORP. ENERGY - agency of the government

DEVELOPMENT CORP
- not a GOCC
- Incorporated under general
corporation law - employees covered by CIVIL
SERVICE RULES AND
- GOCC REGULATRIONS (CIVIL
SERVICE EMPLOYEES)
- Employees are subject o labor code
(rights to unionize and strike) (who are CS employees?)

FTI NATIONAL PARKS DEVELOPMENT

COMMITTEE EMPLOYEES
FOOD TERMINAL INC.
- allowed to join unions but not
- GOCC w/o original charter permitted to strike

- DOLE (not CSC) has jurisdiction PUBLIC SECTOR LABOR-MANAGEMENT

over dispute arising fr. employment COUNCIL
w/FTI
SEC.15, E.O NO. 180
- Terms and conditions of
employment are governed by Labor (NOT DOLE) shall hear the dispute
Code (not by CSRR)
SSS EMPLOYEES (CS EMPLOYEES)
NHA
- when they went on strike, RTC
- Incorporated under act no. 1459 (NOT NLRC) had jurisdiction to
(former corporation law) enjoin the strike.

- Subject to labor code What is a labor strike?

- w/o an original charter (former law A labor strike occurs when workers collectively agree
eh?) to stop working in order to gain a concession from an
employer.
NON- APPLICABILITY TO GOVERNMENT
AGENCIES
 UY, A.

This usually happens after contract negotiations have MANAGEMENT PREROGATIVE

broken down, and a majority of workers in the
bargaining unit have voted for the strike. Both strikes  DISCIPLINE
and picketing are protected activities under
the National Labor Relations Act ("NLRA") under  TRANSFER OF EMPLOYEES
certain conditions and to varying degrees.
 PRODUCTIVITY STANDARD
*LABOR CODE PROVISIONS ON STATE
INSURANCE FUND DO APPLY TO GOV.
PERSONNEL GOVERNED BY GSIS. (Why?)  GRANT OF BONUS
(GSIS IS GOV AGENCY BA)
 CHANGE OF WORKING HOURS

 RULES ON MARRIAGE
APPLICABILITY W/O EMPLOYER-
EMPLOYEE RELATIONSHIP Right to discipline

- labor code may apply even w/o em-  Right to discipline

rel
 Right to dismiss
- not always a precondition to
applicability of the code  Right to determine who to punish

- depends on the kind of issue  Right to promulgate rules and regulations

ex. employment benefits (overtime pay/ rest day)  Right to impose penalty

- employment relationship is
essential
-management has the prerogative to discipline and
ex. Issues is an indirect employer’s liability/illegal impose appropriate penalties on erring workers
recruitment pursuant to company riules and regulations

- no em-rel betweem complainant Only criterion on the exercise of right to

and respondent discipline/dismiss:

- labor code may be invoked -Policies, rules and regulations on work-related

activities of the employees must alwaysbe fair and
reasonable
presence/absence of employer-employee relationship
(labor law question)
-Corresponding penalties should be commensurate to
the offense and to the degree of the infraction
- resolved by applying labor code
provisions
 Right to dismiss

- measure of self-protection
SYLLABUS
conflict between employer’s management prerogative
and employee’s right to security of tenure
INTRO TO LABOR STANDARDS

- latter takes precedence

LABOR AS A PIECE OF SOCIAL LEGISLATION
 UY, A.

- right to terminate services is limited *Matter of imposing appropriate penalty depends on

by labor code the employer’s prerogative.

- employer can terminate an - Appropriate penalty depends on

employee only for a just/authorized him and on the circumstances
cause surrounding it.

- consti recognizes and guarantees - He has the right to impose heavier

right to security of tenure penalty as long as he can justify it.

 right to determine who to punish - Company’s rulesreg can’t negate

his prerogative…
- Employer has reasonable latitude in
determining who among the erring
employees should be punished
Right to transfer employees
- To what extent is the punishment  Prerogative to reorganize

 Right to prescribe company rules and  Prerogative to promote

regulations
 Prerogative to demote
- Necessary for the conduct of its
business -no demonition in rank

- Provide disciplinary measures to -no decrease in [Link], privileges

implement said rules and assure
compliance to those -action not motivated by discrimination

-not a form of punishment and has sufficient cause

-employer must satisfy the burden of proof. If not,

 Right to impose penalty transfer is tantamount to constructive dismissal.

-assign employees from one office to another is valid

- Lawfully impose penalties one
as long as no demotion in rank/ diminution of salary
erring workers
Ex. commitment made by employee in the contract
- Pursuant to company rules that he’s to be re-assigned anywhere in the PH,is
binding on him.
- Subject to “proportionality rule”
Transfer
Proportionality rule - Movement fr one position to
another of equivalent rank,level, or
- Infractions committed should merit salary
only the corresponding sanction - w/o break in the service
demanded by the circumstances. - equivalent position

- Penalty’s commensurate w/ the valid refusal to transfer (instances)

gravity of the offense
1. refusal to transfer to overseas assignment
2. refusal to transfer consequent to promotion
- Imposed in connection
w/employer’s disciplinary authority
 UY, A.

 Prerogative to reorganize - Decrease in duties, responsibilities

- Implementation of a job evaluation - Decrease in salary

program/ reorganization
Demotions exists (instances)
- Valid as long as not contrary to
LAMOGPUPU and in good faith 1. Transfer from highly technical position to
one requiring mechanical work
 Prerogative to promote
2. Transfer from laboratory to the vegetable
Promotion processing section

- Advancement fr one position to Productivity standard

another
- Standards of productivity employees should
- Increase in duties and comply to
responsibilities
Productivity standards used as:
- Increase in compensation and
benefits 1. Incentive scheme

- Higher position 2. Disciplinary scheme

- Nature of gift/reward which any *DOLE intervenes in establishing productivity

person may refuse standards, upon the initiative of the proper party.

Right to refuse promotion Grant bonus

- Can’t promote an employee w/o his Bonus

consent
- Amount granted and paid ex gratia
- Can’t compel him to accept
promotion - Act of generosity

- Can not be punished for not When demandable and enforceable:

accepting such
(generally not because not a part of wage/salary)
*employee can’t be promoted even if as a result of
transfer if he didn’t give his consent to it. 1. Stipulated in employment contract

- Transfer that results to promotion/demotion 2. Company policy/practice

must be done w/ employee’s consent.
3. As an additional compensation which the
 Prerogative to demote employer agreed to w/o anycondition

Demotion *demandable and enforceable when part of the

compensation and amount is usually fixed.
- Employee is relegated to a subordinate/less
imp position - But if the bonus depends upon the
realization of profits, not demandable and
- Reduction to lower rank enforceable.
 UY, A.

- Employer can make a policy that once an

employees is guilty of administrative charge,
he shall forfeit his bonus.

Change of working hours

- Freedom to regulate and control the

time workers should report for
work and perform respective
functions

Rules on marriage between employees/ competitor

employees

- Has prerogative to establish policy

on marriage

- Recognized by jurisprudence and

establish definitive standards to
justify such policy

BFOQ

Bona Fide Occupational Qualification

- Employment in particular jobs may Constitutional provisions

not be limited to persons of a Article II, Secs. 9, 10, 11, 13, 14, 18, 20
particular sex, religion, national
origin UNLESS THE EMPLOYER Declaration of principles and state
CAN SHOW THAT THOSE ARE policies
AN ACTUAL QUALIFICATION
FOR PERFORMING THE JOB.

Reasonable necessity rule State policies (7 provisions)

-promote-

Sec.9

(Just and dynamic social order. Free

from poverty. Through policies)

The state shall promote a just and

dynamic social order/ that will ensure
the prosperity and independence of the
nation

and free the people from poverty

through policies that provide adequate
social services, promote full
employment, a rising standard of living
and an improved quality of life for all.
 UY, A.

Sec.10 The state affirms labor as a primary

social economic force. It shall protect
(Promote social justice) the rights of workers and promote their
The state shall promote social justice in welfare.
all phases of national development.

Sec.20
Sec.11 (indispensable role of private sector)
(values dignity, guarantees full respect The state recognizes the indispensable
for human rights) role of private sector, encourages private
The state values the dignity of every enterprise and provides incentives to
human person and guarantees full needed investments.
respect for human rights. Side notes:

AII sec 18
-recognizes- - Summary of all the objective of labor
Sec.13 laws

(vital role of Youth)

What are the policies of state in labor
The state recognizes the vital role of
youth in nation building and shall AXIII SEC3
promote and protect their physical,
- Right to organize, constitutional
moral, spiritual, intellectual and social
right
well-being.
- Right to strike, statutory right (in
It shall inculcate in the youth patriotism accordance to law)
and nationalism, and encourage their - Gov employees don’t have the right
involvement in public and civic affairs. to strike under civil service law

Sec.14 Article III, Secs. 1, 4, 7, 8, 10, 16, 18(2)

(role of Women) Bill of rights (7 provisions)

The state recognizes the role of women Sec.1

in nation-building , and shall ensure the
(no person)
fundamental equality before the law of
women and men. No person shall be deprived of life,
liberty, or property w/o due process of
law, nor any person be denied the equal
protection of laws.

Sec.18 Sec.4

(Affirms labor as primary social (no law passed abridging)

economic force)
No law shall be passed abridging the
freedom of speech, of expression, or of
 UY, A.

the press, or the right of the people (involuntary servitude)

peaceably to assemble and petition the
government for redress of grievances. No involuntary servitude in any form
shall exist

Except as punishment for a crime

Sec.7 whereof the party shall have been duly
convicted.
(right of people to info)

The right of people to information on

matters of public concern shall be Article XIII, Secs. 1, 2, 3, 13, 14
recognized.
-policies enshrined in consti that aren’t
Access to official records, and to covered by article 3 of labor code
documents and papers pertaining to
official acts, transactions, or decisions,
as well as to government research data Social justice and human rights
used as basis for policy development,
shall be afforded the citizen, subject to (5 provisions)
such limitations as may be provided by
Sec.1
law.
(congress)

The congress shall give highest priority

Sec.8
to the enactment of measures that
(right of people to form unions) protect & enhance the right of all the
people
The right of the people, including those
employed in the public & private sectors, to human dignity, reduce social,
to form unions, association, or societies economic, and political inequalities, and
for purposes not contrary to law shall remove cultural inequities by equitably
not be abridged. diffusing wealth and political power for
the common good.

To this end, the state shall regulate the

Sec.10 acquisition, ownership, use, and
(no law impairing oblicon) disposition of property and its
increments.
No law impairing the obligation of
contracts shall be passed. Sec.2

(promotion of social justice + create)

Sec.16 The promotion of social justice shall

include the commitment to create
(speedy disposition of cases) economic opportunities based on
freedom of initiative and self-reliance.
All persons shall have the right to a
speedy disposition of their cases before
all judicial, quasi-judicial and
administrative bodies. Under labor

Sec.3 (ang haba naman neto)

Sec.18 (2)
 UY, A.

The state shall afford full protection to Under women

labor, local & overseas, organized &
unorganized, and promote full Sec.14
employment and equality of employment The state shall protect working women
opportunities to all. by providing safe and healthful working
conditions, taking into account their
maternal functions, and such facilities
-guarantees- (7) and opportunities that will enhance their
welfare and enable them to realize their
It shall guarantee the rights of all full potential in the service of the
workers to self-organization, collective nation.
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. (3rd sentence, self-
explanatory)

The state shall promote the principle of

shared responsibility between workers
and employers and the preferential use Labor Code
of voluntary modes in settling disputes,
Articles 1-7, especially Art. 4
including conciliations, and shall enforce
their mutual compliance therewith to Art.1
foster industrial peace.
This decree shall be known as the “Labor
The state shall regulate the relations code of the Philippines.”
between workers and employers ,
recognizing the right of labor to its just Art.2
share in the fruits of productions and
This code shall take effect 6 months
the right of enterprises to reasonable
after its promulgation.
returns to investments and to expansion
and growth. Art.3

The state shall afford full protection to

labor, promote full employment, ensure
Under health
equal work opportunities regardless of
Sec.13 sex, race or creed and regulate the
relations between workers and
The state shall establish a special agency employers.
for disabled person for their
rehabilitation, self-development, and (4)
self-reliance, and their integration into
The state shall assure the rights of
the mainstream of society.
workers to self-organization, collective
bargaining, security of tenure, and just
and humane conditions of work.
 UY, A.

Art.4

All doubts in the implementation and Who are excluded in labor code as a whole?
interpretation of the provisions of this Excluded by title I?
code, including its IRR, shall be resolved
in favor of labor.

Art.5

The DOLE and other government

agencies charged w/the administration
and enforcement of this code or any of
its parts shall promulgate the necessary
IRR.

Such rules and regulations shall become

effective 15 days after announcement of
their adoption in newspapers of general
circulation.

Art.6
WEEK 2
All rights and benefits granted to
workers under this code shall, except as TITLE I, BOOK III, LABOR CODE
may otherwise be provided herein, apply WORKING CONDITIONS AND REST
alike to all workers whether PERIODS
agricultural/non-agricultural.

(Amended by PD. 570-A)

EMPLOYER-EMPLOYEE RELATIONSHIP

Employee
On Art. 13, Sec.3 1987 CONSTI
- Any person who performs services for an
Government employees employer (if you say any, it can be asked,
- Excluded by the labor code “even a minor”)
- Either/both mental and physical efforts are
used
- Receives compensation for his service
Gocc w/original charter
- Employee-employer relationship is present
Gocc w/o original charter
Employee includes:
- Covered by labor code
1. dismissed from work and legality of dismissal is
- Can strike being contested

[Link] has ceased because of a labor dispute/unfair

Employees of international organization labor practice

- Not covered by labor code 3. employ of an employer

Corporate officer *an entity is labor union doesn’t mean it cant be an

employer of persons who work for it.
 UY, A.

*an unregistered association may be deemed an Instead, it is Jurisprudence which provides for
employer. the four-fold test of EER.
*law doesn’t require an employer to be registered
before he may come within the purview of the labor
code Don’t just depend on titles, on compensation,
on what the contract says it to be, on how the
- when the law doesn’t distinguish, we should not
Er-Ee says it is. CONSIDER ALL FACTORS.
distinguish.

A.219

Employer

- Any person, natural/juridical,

domestic/foreign Employment relationship
- Carries on in the PH any trade, business,
industry, undertaking, activity of any - Personal arrangement of exchange
kind - Between living individuals w/
- Uses services of another person economic, social, spiritual needs
- Under his order (As regards the - Has hallmarks of a contract
employment) - Reciprocal enforceable contract
- Except the government and its political - Consent, cause, consideration
subdivisions (search reqs for obli and contract)
- Diff: not a contract over a lifeless
Self-employed person
property/rights
- Both an employer and employee at the (emphasis of lifeless)
same time (ILO REPORT)
Employer includes:
- Main vehicle for workers to have access
1. employs the services of others to rights and benefits
- Key point of reference for determining
[Link] whom employees work and pays their nature and extent of employer’s rights
wages/salaries and his obli towards workers
[Link] person acting in the interest of an (like entitled ba sa separation pay if
employer (directly/indirectly) terminated due to authorized cause or
covered ba kasi manager)
*shall not include any labor org/ any of its
officers/agents except when acting as an
employer - Reciprocal rights and obligations are
created when above is present
- Legal notion
- Refer to relationship between employee
labor Code does not provide for the standards and employer (whom employee works
in determining EER. It would have been more under certain condition for remuneration)
convenient for employers and employees to 3 elements of employment relationship
only consult the Labor Code in looking for said
standards. Constitutive elements
 UY, A.

- Without these, employment rel. has no 2. social/human

identity
[Link]
1. Economic
2. legal *the inquirer who seeks a single remedy to all
3. Human/social ailments is doomed for failure. (ELTON MAYO)

Economic character of the employment

Employment – internal to the enterprise relationship
Enterprise external as it is - involves creation/ provision of goods
and services that meet material needs of
people
Business Enterprise as a social institution - Resources (financial/not)
Efforts (physical/mental)
- Very heart of an economic system of private Are applied to make relationship
property and market relationships. productive.
(ECONOMIST HEILBRONER)
Purpose of employment relationship:

Triple personality of a business Achieve “quantifiable material objective”

external Competitive market economy

TRIPLE PERSONALITY THEORY - Worker tends to be paid based on the

value their works create for the
PETER F. DRUCKER
employer
- All at once an economic, political and - Greater the revenue a worker brings,
social institution (ALLAN FLUNDER) more he is paid.
1. Economic
1800s
- Produces and distributes incomes by
operating within a nexus of factor and Manufacturing in the factory system
product markets.
2. Governmental / political Cash nexus substituted old relations between
- Embodies a system of government in which masters and men
managers collectively exercise authority
- Also themselves involved in an intricate
pattern of political relationships
3. Social
Human/ social character of the employment
- face-to—face relations based on shared
relationship
interests, sentiments, and values among
various groups of employees - Conditioned by human elements
- Personal needs that go beyond
triple character of the employment relationship
economic
internal - “basic rules of fair play and equity”
apply because of human element
*economic-governmental-social personalities of - Human considerations in work places
the business enterprise correspond to the triple
constitutive elements of employment relationship. Legal character of the employment relationship
(in short same lang sila, interrelated)
- Effected and affected by law
- one mixture of three, only separate by - Not at all law
name - Human factors are alive and pervasive
1. economic
 UY, A.

Legal sources of management authority A.219

-check book for discussion- - labor code doesn’t illustrate/explain

employer/employee only offers “definitions”
Management
-but no genus and differentia
- Organ of the enterprise
- Authority through which enterprise
operates
- Actions and decisions that mobilize
material and human resources Tests of Employment Relationship
Constitution - No uniform test
(SEVILLA VS. CA)
Civil code
Four-fold test
Corporation code
Indicators of existence of employer-employee
Court decisions
relationship

1. Selection and engagement if the employee

Illustrative examples/cases 2. Payment of wages
3. Power of dismissal
-book- 4. Employer’s power to control the
employee w/respect to the means and
methods by which the work is to be
Essentiality of employment relationship accomplished
(right to control not only the end to be
- Standards apply only if there exists achieved but also the means to achieve
employer-employee relationship such)
- Partnership, co-ownership,
independent contractorship control test
(labor standards don’t apply)
- most important element
Question of law - w/o such, no employer-employee
relationship
- Arises when there’s doubt as to what - traditional/conventional test
the law is on a certain state of facts - NOT THE SOLE TEST
(SEVILLA VS. CA)
Need to consider the existing conditions
question of fact
between the parties, in addition to the right-
- Doubt arises as to the truth/falsity of of-control to determine emrel.
alleged facts - 1956, first adopted
- VIANA VS. AL-LAGADON
Core or non-core jobs - mere existence of the right to control the
- Kind of works isn’t definitive test of manner of doing work, not the actual
whether worker is an employee/ not exercise of such.
- Just because work is not directly (See case below)
related to the business, doesn’t mean *DY KEH BENG CASE
not an employee (housekeeping)
(company physician) Establishment of DY Keh Beng is engaged in the
manufacturing of baskets/kaing. It’s natural to expect
Futile circumlocutory that he will set the size and quality of kaing and
 UY, A.

control will be exercised. Making of the kaing is (INSULAR ASSURANCE CO. VS NLRC)
subject to his specifications.
- Exclusivity of service
Inferred that Dy could easily execise control on his - Control of assignments
men. - Removal of agents
- Collection of premiums
Supervision/control (strongest test)
- Furnishing of facilities and materials
Most commonly used factors for determining
whether work is being performed under an Independent contractors
employment contract - Can employ others to work and accomplish
- dependency result w/o consent of contractee
- subordination Employees
- work done under direction, authority,
supervision, control of the employer - Can’t substitute another in his place w/o
consent of employer
*when designated as a “branch manager”, doesn’t
make one an employee.
Two-tiered approach/ two-tiered test
Employment
- Better approach
- determined by right-of-control test and - Framework of analysis
economic parameters - Totality of circumstances
- titles are WEAK INDICATORS - appropriate esp if NO written agreement/
*a person works for another but does more/less at his terms of reference to base the EMREL
own pleasure, not subj to definite hours/conditions - complexity of relationship based on
but compensated according to result of his effort not positions and responsibilities
the amount
1. Employer’s power to control the
(NO EMREL EXISTS, NOT ENTITLED TO employee w /respect to the means and
BENEFITS) methods of work
2. Underlying economic realities of the
Employer
relationship
- employs the services of others
Economic dependent test
- whom employees work for
- pays wages/salaries 1. Extent to which the services performed
are an integral part of employer’s
employee business
- engaged in the service of another 2. Extent of worker’s investment in
equipment and facilities
- Works for salary/wages
3. Nature and degree of control
- Work’s subj to the control of employer
4. Worker’s opportunity for profit and loss
*lawyer may be employed by a firm/government. 5. Amount of initiative, skill,
(employee) judgment/foresight required for the
enterprise’s success
* He may also contract w/ a firm to act as OUTSIDE 6. Permanency and duration of the
COUNSEL ON A RETAINER BASIS. (not) relationship between worker upon the
employer for his continued employment
in the line of business
Hallmarks of a management system
(proper standard of economic dependence)
(one is an employee of insurance company)
 UY, A.

Whether the worker is dependent on the alleged Allegation not specifically denied is deemed
employer for his continued employment admitted.

Economic reality in analyzing employment Absence of name in the payroll

relationships: dependency
Opulencia Ice plant vs. NLRC
(elaborate “Economically depenedent”)
- Employer argued that in the absence of
- economically dependent on a single complainant’s name in the payroll, then he
employer for their source of income isn’t an employee.
- Court said that if only DOCUMENTARY
 economic interdependence is a condition that
EVIDENCE would be required to show
exists when two or more persons, organizations,
such relationship it would result to
regions or countries exchange goods and services
injustice since any scheming employer
with the purpose of filling each other multiple
wont be brought to court.
needs.
- It would be easy to not just put the terms in
a written piece.
- EMREL HERE IS SUFFICIENTLY
- SC applied in 2006 PROVED BY TESTIMONIAL
- in certain cases, control test isn’t sufficient EVIDENCE.
- economic realities help provide a - Absence of time sheet, time record, pay roll
comprehensive analysis of the true = inconsequential
classification of the individual
Mode of compensation, not a test of employment
whether as employee, independent status
contractor, corporate officer
- Whether called salary, wage, commission
- INVESTMENT PLANNING VS. SSS
- May be computed on the basis of time spent
ECONOMIC FACRS TEST WAS
on the job or the skills possessed
REJECTED BY THE SCC THEN REVIVED
- in the same way a non-employee/
BY SEVILLA AND FRANCISCO.
practicing professional may be paid
Evidence of employment according to how much time spent with his
client, how difficult task, how voluminous
1. Identification card the work.
2. Vouchers - EMREL IS ONE THING, PAY
3. SSS registration DETERMINATION IS ANOTHER.
4. Memorandum
Merely methods of pay computation
Substantial evidence
(don’t prove if payee is an employee/not)
- Sufficient as basis for judgment on existence
of EMREL o PIECE-RATE
- Administrative and quasi-judicial o BOUNDARY
proceedings o PAKYAW
- No particular form of evidence
*employer cant say that he didn’t pay the
(take note of other forms of evidence)
statutory benefits because they aren’t his
- Competent and relevant evidence
employees based on paid on per piece basis.
*claimant’s allegation of EMREL which employer
(NOT CORRECT)
doesn’t deny is DEEMED ADMITTED.
Court: Still considered as regular employees based
on status and nature of employment not mode of
Rule 9, section 11 of the Rules of Court compensation.
 UY, A.

*Pakyaw workers doesn’t make employees as - Check fact, if control test is present
independent contractors.
Boundary-hulog contract
Even if their services aren’t continuous/ every day
(doesn’t negate EMREL)
all throughout the year. But rehired every
*failure to remit boundary is a valid
working season, then they’re regular employees.
reason to suspend the driver.
“Pakyaw” or task basis refers to rendering of services
by the result, regardless of the time spent for its Truck driver
accomplishment. Workers are hired intermittently (employee, not partner)
and for a short period of time only.
4. Piece-rate workers
(why not entitled to service incentive leave
and holiday pay? )
Existence of EMREL determined by law, not by
Kase based on their output ung salary
contract
nila and not computed by time spent
- Cant be negated by repudiating it in the ganon?
management/employment contract
- Not just because it’s called “contract of Makati Haberdashery vs NLRC
lease of services”
- Factual existence prevails 5. Street-hired cargadores

Employment relationship present

6. Workers in movie projects
1. Salaried insurance agent
2. School teachers Labor union & unregistered association as
3. Jeepney driver, taxi driver, barber employer
4. Piece-rate workers
5. Street-hired cargadores - Even a labor union/ unregistered
6. Workers in movie projects association can be an employer

1. Salaried insurance agent

(agents paid on commission basis is not an
employee) Kinds of employees

2. School teachers What is the employee’s status

(not independent contractors)
Number of criteria
3. Jeepney driver, taxi driver 1. On the basis of tenure
Applicable to: 2. On the basis of entitlement to codal basic
Bus owner-bus driver/conductor benefits
Auto-calsesa owner- dirver 3. On the basis of wage determination
Taxi owner- taxi driver 4. On the basis of salary component
5. On the basis of rank and union
(employees of operator/owner) membership
(not lessor-lessee)
(not a lease of chattels wherein lessor
completely loses control over the chattle
On the basis of tenure
and lessee is responsible in case of
damages) Tenure

Barber - Manner in which office/job is held

(employees of a barber shop)
 UY, A.

- Time a position is occupied by an - Can become “Regular casual”

employee - Doesn’t fall under permanent/temporary/
(not the same as farmers who are season-
Employee may be:
related workers?)
 Permanent employee
Regular employee
- Appointed for undefined period/  Fixed-period employment
indefinite period - Kind of temporary employment
(jurisprudence)
Regular employee - Defined period must be genuine condition
- One doing necessary task to the usual of the job
business (A.295, LC) - Not meant to avoid regular status of
- Terminated only if there’s a employee
just/authorized cause (A.294, LC) - Hiring workers under a “five month
- Legal requirement of a cause = security of employment contract” (contrary to public
tenure policy)
*law prefers to give security of tenure to every
 Probation
employee, as much as possible every employee
- Six-month period
is considered regular.
- Employer observes the performance and
*any necessary/desirable job as REGULAR conduct of the employee
- If passes agreed standard, retained as
*If not necessary, as long as desirable in the regular employee.
business. If not desirable, it should be - If fails, tentative employment ends
necessary. (A.296, LC)
(difficult to escape “Regular” classification, On the basis of entitlement to codal basic benefits
diff to remove employee)
Entitlement/non-entitlement to employment
benefits
 Temporary employee
- Stays on the job for a defined/ pre-agreed Statutory benefits
period
(no sec. of tenure??) - Employment supplements granted under
title I, book III of LC, other labor and
-are the next 3 under the variety of temporary social laws
employment? Or only fixed and probation? Since - Employees are entitled to these/not
project and casual employees can be considered depending if they’re excluded by Article
regular?- 82

Codal basic benefits

 Project/season employee
- Not regular, not permanent - Exclusions of certain kinds of employees
- Exists only in relation to a season/project serve as a basis of classifying employees in
relation only to benefits (managerial,
- Temporarily
field,etc.)
- Law allows project-based/season-related
jobs to be temporary Employment benefits

- Under pertinent provisions of other laws

(Is this diff from statutory benefits? Or it’s codal

 Casual employee
basic benefit and employment benefits that are
- Hired for particular on-and-off activities
diff from each other? )
 UY, A.

- Entitlement depends on which benefit is Payment-by-result

being claimed.
Article 101

*basis of pay isn’t a test whether the payee is an

- Exclusion of certain categories of
employee/not.
employees in A.82 cant be applied in
general

Particular benefits granted by other labor On the basis of salary component

laws whose inclusion/exclusion provisions
Salary component is whether salary covers:
are diff from those of title I, book III
1. Daily-paid
SSS LAW Only the day/days actually worked
SOLO PARENT LAW - Can be paid on the day’s end/weekly
EMPLOYEES’ COMPENSATION LAW
13TH MONTH PAY LAW 2. Monthly-paid
All the days of the month including rest
Ex. A manager isn’t entitled to overtime days and holidays
pay but entitled to benefits under SSS - Salary at least meets the minimum rate
law. Excluded from coverage of 13th for each day
month pay but entitled to law on work- - Inclusiveness of the salary not
rekated inhuries under book IV of LC. frequency/intervals of payments

Frequency- when the wage is available

Salary component- which days the salary
On the basis of wage determination covers

Worker’s pay Who to be paid on monthly/daily basis?

- Determined by time, work result, work Time or non-time? How to price diff jobs?
volume, work hazard, - Need technical and judgmental bases such
commission/percentage as skills/ responsibility of job holder
- Issues taken in HRM
Pay determinants: time/ non-time
On the basis of rank and union membership
Time-based
Rank
- Wage corresponds to amount of time
spent on the job - Level of employee’s position/job in the
organizational hierarchy (degree of
Non-time official authority)
- Calculated based on amount/kind of job Article 255
done regardless of time used
Article 219 (Eligibility for union membership)
LABOR CODE
Managerial (ineligible)
Time-based wage/salary
Supervisory
Articles 83,84,87
Rank-and-file

( supervisory and rank-and-file can be classified

Non-time wage into union and non-union members)
 UY, A.

- Doesn’t really hire people

- Merely recruits and supplies people
Employment relationship absent
- Agent of the true employer (enterprise)
Job contracting
Employer-employee relationship : enterprise
Independent contractorship and workers

inseparable issues: Emrel and job contractorship General right of employer over conditions of
employment
- Incompatible relationship
- Dissimilar effects Who lays down the conditions surrounding the
- Employee’s not a contractor, contractor’s employment relationship?
not an employee (doesn’t enjoy Conditions of employment
employee’s rights)
- Laid down by law/by contract/ established
(So ano relationship between contractor and
practice
employer?) (like obligor and obligee?)
2 kinds of employment conditions/benefits
Contractor
1. Statutory
- Self-employed/ employer to others
- Provided by law
- Individual/firm 2. Voluntary
- Hires other workers, latter are huis - Inititated by employer unilaterally/by
employees and not those of contractee. contractual stipulation
Trilateral set-up *employer is free to regulate all aspects of
- Law recognizes only if contractor is a employment, according to his own discretion and
bona fide employer-business man/ judgment.
business firm *no congress-made law can repeal/suspend laws of
- If not, contractee ends up being the direct economics.
employer
Except as limited by special laws.
Who is a bona fide job contractor?
Limitations to stipulations
Whjat is valid job contracting?
- Not contrary to law, morals. Public order,
Ex. Security agency public policy
Enters into a contract to render a service, job
contractor. Guards supplied by agency to an Excluded employees
enterprise aren’t employees of the client company.
Guards are employees of agency. Not covered by law on conditions of employment

Employer-employee relationship : job contractor - ONLY EXCLUDED ON ARTS. 82-96 (?)

and workers 1. Government employees
2. Managerial employees/ staff
No relationship : workers and job contractee 3. Outside/ field sales personnel
4. Employer’s family members (Dependent
on him for support)
Labor-only contracting 5. Domestic helper
6. persons rendering personal service to
- Prohibited another
- Labor –only contractor 7. Workers paid by result
- Not to accomplish a job/service
- Merely supply the people to do the job
 UY, A.

Supervisors - Hours and days of work cant be

determined w/ reasonable certainty
Fiduciary ran-and-file employees
- Paid specific amount for specific service
Outside/ field sales personnel - Location’s not the only basis but also if
unsupervised by the employer
Personal/family drivers
Ex. Third party logistics provider

*if required to be at a specific place at specific

1. Government employees time, employees (+ driver) cant be said to be a
- Governed by CIVIL SERVICE RULES field personnel
AND REGULATIONS
- Doesn’t exclude employees of government Even if working away from the principal office.
agencies and corporations incorporated
*usage of work hours is supervised, not a field
under the corporation code (LC
personnel.
APPLIES)
(search for such employees and goccs)

RA NO 7305 !!!!!! Noteee !!!!!!!!

PUBLIC HEALTH WORKERS *Employees paid on task/commission basis, not
a field personnel.
2. Managerial employees/ staff
- Includes supervisors (same as managers *fishermen on board are required to remain on
for book III) board its vessel, no choice. Under effective
control and supervision. Fishermen, NOT field
Supervisors in book III personnel.
Art.82
*bus drivers, conductors, NOT field personnel.
- Managerial employee
- Not entitled to benefits 4. Employer’s family members (Dependent
- Can be entitled by voluntary acts of on him for support)
employer
5. Domestic helper and persons rendering
Supervisors in book V personal service to another
Art.219
- Allowed to form, join, or assist the labor
*Those hired by a ranking company official, a
union of fellow supervisors
foreigner, but paid for by the company itself- to
- Labor relations
maintain a house, not the latter’s helper but
regular employee of the company.
*Supervisors, not entitled to overtime pay
*Family cook who was later assigned as
*shift engineer/foreman/boiler head , watcher/cleaner of employer’s business
considering his duties and responsibilities establishment becomes an INDUSTRIAL
WORKER.
*but this isn’t what happens in
management reality. If it does, then emrel Entitled to receive wages and benefits from such
will not last. Imagine being a manager status.
then receiving less benefits?
*Waiters, NOT domestic servants
3. Outside/ field sales personnel 6. Workers paid by result
- Non-applicability of overtime law - Paid by results not by time
- Workplace away from the principal office
- No control. No restrictions on time etc ADDITIONAL EXAMPLES:
 UY, A.

Fiduciary Rank-and-file employees School –principal/ contractee/ Indirect employer

- Entitled to SIL, holiday pay, etc.

- Entitled to labor standard benefits
Usual labor contracting agreement:
- Not an incorporator on paper
bilateral relationship
Fiduciary
Labor contracting/service contracting
One who in the normal and routine exercise of her
functions regularly handle significant amounts of Independent job contracting
money/property.
Independent service contracting outsourcing
Ex. Cashiers, auditors, property custodians
Civil law: contract for service (labor contracting)
relationship in which one party places special
trust, confidence, and reliance in and is influenced - Arrangement between contractor and
by another who has a fiduciary duty to act for the contractee
benefit of the party
Civil law: contract of service (employment)
Ex. lawyers acting for clients, company executives
acting for stockholders, guardians acting for their
wards, financial advisors acting for investors, and Diff of prepositions
trustees acting for estate beneficiaries
For- purpose

Of- ownership
family drivers
Relating to
- Not entitled to OT pay
- Can be entitled to benefits if agreed Signifies a relationship between two objects
between him and his employer
- Labor code/ kasambahay law not
applicable
- GOVERNED BY CIVIL CODE
Labor-only contracting vs labor contracting
ART. 1689, 1697, 1699
(Why civil code) - Former is an aberration of legitimate
labor contracting

Long established lawful agreement

ARTICLES 106 – 109
- Covered as “contract for a piece of work”
Job contracting
under the civil code
Contracting and subcontracting, generally
Ex. Merritt the contractor constructed Marian’s
permissible
building. He owed Fressel payment of materials
Trilateral relationship obtained. Fressel went after Mariano but he
denied liability and showed contract stating that
Employer-contractor! Subcontractor Merritt will do stuff according to his own method
Employee and w/o Mariano’s control except to the result.

Contractee Court found Merritt as an independent

contractor.
Ex. Security agency- employer-contractor
Liability is his alone and not of Contractee
Guards-employees of agency Mariano.
 UY, A.

Contract of sale naman not contract for a piece of

work agreement between a business and
(CANT SAY NA FRESSEL IS A SUBCON KASE a self-employed individual.
HINDI NAMAN SERVICES NYA UNG OBJ
DITO. MATERIALS SIZ MATERIALS. ISIP Subcontractors aren’t a part of your
ISIP MABUTI PLS THANKS)
business - you don’t manage or
Hires services vs. obtains materials
supervise them, provide instructions

Essential characteristics of labor contracting/job

on how they should perform their
contracting/job contractor work or have line management
1. Has business of his own responsibilities over them.
2. Has substantial capital/ investment/
capital of his own Subcontractors deliver the service
Tools, Equipment, machinery, work
premises to your or your client ‘as if they were
3. Does the job according to his own
manner/method, not under the control of
you’. 
contractee except as to the result
Subcontractor examples 
(Ano rs between contractor and subcont?)

None? Contracting and  A digital marketing agency

subcontracting are synonymous
may engage a copywriter to
under Philippine labor law. The
term that is more commonly used perform the content and
is subcontracting. copywriting tasks as part of a
larger project 

A subcontractor is a business or a  A contractor in the

person that undertakes work for a construction industry may hire
an electrician to perform
company as part of a larger
electrical wiring services as
project. In undertaking a contract
part of a building job
from a contractor, subcontractors
 A designer may subcontract a
carry out work that the contractor
logo design task to another
can’t perform, but remains
graphic designer
responsible for. 
 A web designer may
A subcontractor provides his or her subcontractor programming
services under a contract for tasks to a developer
service. This is a legally binding
 UY, A.

- As if directly employed by him

(a fashion designer may hire a
*indirect employer cant escape liability even if he
model for the brand she contracted
paid workers’ wage rates as stipulated in the
with?) contract.

*labor standard legislations are deemed written in

very contracts.

Stipulations in violation of such are deemed not

What jobs to contract out written.
- Deciding on this is a MANAGEMENT *legislated wage increases are deemed
FUNCTION amendments to the contract.
Internal personnel
External service providers Principals/employers cant hide through their
contracts to evade this
Contracting out: proprietary right

(own right)
Reimbursement
- Inherent prerogative of management
- Whether it should contract out the - Indirect employer can recover whatever
performance of its work to independent amount it paid in accordance w/ the terms
contractor (SC) of service contract
- Neither CC OR LC identifies kinds of *He shouldn’t be liable for WAGE
jobs that may/may not be contracted out DIFFERENTIALS incurred while
- Even jobs necessary/desirable to the main complainants were assigned to other
business aren’t banned from being companies
contracted out
Liability limited to the extent of the work
Unchanged labor code provisions and court performed under the contract.
rulings

- ARTICLESD 106 TO 109

- Adopted by LC Articles 106 – 109
- Already established even before 1974
- Intended to assure compliance w/
Court decisions on extent of principal’s liability in statutory minimum wage
legitimate contracting
Ex. In construction/service contracting/ security/
A.109 janitorial services, principal’s liabiliuty limted to
the wage increase only not to other benefits
- Liability of the principal; in legitimate
contracting IS NOT ONLY FOR
UNPAID WAGES BUT BROADLY FOR Liability for other violations
ANY VIOLATION OF THE LC.
Qualified/limited liability of the principal
Rosewood differentiation of liabilities
D.O NO.174 (2017)
On Wages
D.O NO. 18-A (2011)
- “jointly and severally liable”
- “solidary liable” - If the liability is for failure to pay
- Employer w/ contractor/ subcontractor minimum wage, service incentive leave,
to employees of the latter other benefits
 UY, A.

Principal = liable to contractor PRECONDITION TO ENTITLEMENT TO

As if he’s the direct employer LABOR RELATIONS RIGHTS

- Liability is w/ punitive character - Allegation of lack of such relationship

Award for backwages, separation pay should hinder the issues raised.
because of illegal dismissal of contractor’s - Must be solved first
employee - Preliminary incidental question

Sole liability of contractor

(in the absence of proof that principal Consequence of LOC
conspired w/him)
- Worker supplied by a manpower agency
becomes employee of client company
(based on the contract)
Posting of a bond

LOC - Agency-hired employee becomes entitled

to benefits under the CBA of client
Prohibited labor-only contracting company
- Arrangement to supply workers to a job !!!-REREAD AZUCENA FOR THIS
owner PART-!!!
- Job owner who supervises/controls such
employees w/o being an employer (owner enquiring look at the imposition of employment
of contractor?) relationship: consequence of labor-only
- Employment avoidance contracting
- Not a contractor’s commitment to - Creation of employment relationship
accomplish a job because of LO contracting is highly
- Needs to be proved by evidence otherwise questionable
upheld as legitimate contracting
- Contrary to public policy - A107-109 doesn’t say that principal
Effect: creation of employer-employee becomes employer but “becomes liable for
relationship between principal and workers hired wages/benefits”
by ALLEGED CONTRACTOR Manpower agency can’t be a contractor-employer
- Absorption of employment relationship - Agency only searches people to be
- From alleged contractor to client/ employed by client company
principal - Doesn’t qualify as an a contractor-
- Principal has to shoulder all obli of employer
employer (not just payment of wages)
- Principal becomes directly responsible to Recruitment agency
said employees
- By law and regulations cant be an
*law implies an employer-employee relationship employer/job contractor
between employer and employees of LABOR-
ONLY CONTRACTOR

Comprehensive purpose:
Various consequences of employment relationship
prevent any violation of LC provision

existence of employer-employee relationship:

ART.97 BOOK III
 UY, A.

ART.173 BOOK IV - Established freely, knowingly, selectively

- Like marriage
BOOK V
- Not just an economic deal
- HAVE DIFF DEFINITIONS OF - Governed by interpersonal elements
EMPLOYER AND EMPLOYEE Selection process
(CHECK SUCH) Probation period
- Has multiple incidents and repercussions Performance appraisal
- Effects are divisible and separable Loyalty awards
depending on liability involved Long-service gratitudes
- 1 worker can have more than 1 employer
depending on the issue - External father liable for child support
but doesn’t make him a husband to the
Employment relationship mother (civil law)
- To declare that Y, hired by E, is an
- Personal and consensual decisions
employee of Z is arbitrary, baseless and
Indispensable foundation of EMREL: mutual anomalous.
consent - No selection, no consent, no meeting of the
minds
- ONLY AN IMPOSIITON FROM
in personam relationship: the father doesn’t EXTERNAL DICTATE
become the husband

“IN PERSONAM “– “AGAINST THE PERSON” *PBCOM decision didn’t only enforce payment
but also created relationship between total
[1] An action in rem is one instituted and strangers
enforced against the whole world.
- Liability is diff from relationship

[2] An action in personam is one filed against a *purchase/ transfer of business ownership doesn’t
definite defendant. It is intended to subject the transfer employment from seller to buyer (BPI
interest of defendant on a property to an obligation or ruling)
lien. - Employees are not chattel
In actions in personam, jurisdiction over the person - Cant be transferred, w/o their consent, to
(defendant) is required. It is a proceeding to enforce another employer
personal rights and obligations brought against the
*the fact that employment relationship is carried
person, and is based on the jurisdiction of the person,
by people and governed by interpersonal elements
although it may involve his right to, or the exercise of
are facts disregarded in LOC consequences
ownership of, specific property, or seek to compel
rulings.
him to control or dispose of it in accordance with the
mandate of the court. *totalistic transfer of employment relationship
from SUPPOSED CONTRACTOR TO
The purpose is to impose through the judgment of a
PRINCIPAL disregards the legal, economic, and
court, some responsibility or liability directly upon
personal considerations of employment
the person of the defendant.
relationship.
No other than the defendant is liable, not the whole
- Overlooks tremendous implications of
world, as in an action for a sum of money or an
such abrupt transfer of employment
action for damages.
*economic impact of policy restricting
independent contracting deserves primary
*EMPLOYMENT RELATIONSHIP IS IN consideration and careful study.
PERSONAM (ruling)
 UY, A.

Registration of contractors 4 elements to make labor contracting

Registration of contractors with DOLE Legal and legitimate

REGIONAL OFFICE
1. registered properly w/DOLE
- Another device to secure employees’ labor
[Link] capital
rights
- Dole office where applicant contractor [Link] business of the contractor
principally operates
[Link]/supervision of the workers by
 Registration requirements contractor, not by principal
 Submission of semi-annual reports
 Grounds for delisting a contractor
- First 2 can be proved by fact of
Applicant for registration
registration
 Proof of substantial capital - Other 2 arise from and proved only by
 Copy of registration actual facts observable and verifiable
 Certificates from government regulatory from relationship and conduct of parties,
agencies (DTI etc.) not by the mere fact of registration
 Audited financial statements
*Despite the registration certificate, actual facts
*what is the effect of not being registered? may prove that labor contracting partakes of the
nature of labor-only contracting.
- Gives rise to the presumption that
contractor is engage in labor-only - -the same way that employer-employee
contracting (disputable) relationship isn’t determined by the name
of the contract/ stipulations
*does registration presume that registrant is a
legitimate contractor? *legitimate labor contracting isn’t proved by mere
fact of registration with DOLE.
D.O NO. 18-A (no say on this)

DOLE ON Q&A ON CONTRACTING AND

SUBCONTRACTING:

Certificate of registration stands as DOLE Effect of registration/ non-registration

GUARANTEE to the user-enterprise and to the
- Legitimate contractor qualifies as such
workers that the registrant is a legitimate
contractor and substantially capitalized. even w/o registration w/ DOLE
- If contractor supervises workers and
(If asked why stated talaga ung substanstially imposes disciplinary actions, this
capitalized, kase syempre employees have to know strengthens the fact that he’s the
kung macocompensate ba sila??) employer

*Employer-employee relationship isn’t tarnished

by the absence of registration with DOLE as an
*BUT IS THIS DOLE GUARANTEE VALID? independent contractor
DOES IT HAVE LEGAL BASIS? *Absence of registration ONLY GIVES RISE TO
- Highly questionable THE PRESUMPTION THAT ONE’S A LABOR-
ONLY CONTRACTOR.
 UY, A.

*Registration is not a proof of being an D.O. NO. 174 OF 2017

independent contractor.
POLICY SHIFT TO RESTRICT JOB
CONTRACTING

Certificate of registration as an independent - March 16, 2017

contractor issued by DOLE - change of admin on July 2016
- rules implementing articles 106 to 109
- Not a conclusive evidence of being such
changed as well
- Simply prevents the legal presumption of
- seventh of such implementing rules
being a mere labor-only contractor
- superseded D.O NO. 18-A of 2011
IN DISTINGUISHING:
guiding principles and implementation thrust
Permissible job contarcting
guiding principle in D.O NO,.18-A OF 2011
Prohibited labor-only contracting
guiding principle in D.O NO.174 OF 2017
- Totality of the facts and surrounding
- deletes the reference to contracting and
circumstances are considered
subcontracting
- Not just registration/ certification with
- use of “non-permissible forms of
dole
contracting and subcontracting”
*LABOR CONTRACTORS are mandatorily
section 4 of D.O NO. 174
required to register w/DOLE.
OBJECTIVE/THRUST
*Failure to register presumes that one’s a LOC.
THE SECRETARY OF LABOR AND
Disputable presumption
EMPLOYMENT SHALL REGULATE
(doesn’t make your services illegal right?) CONTRACTING AND SUBCONTRACTING
ARRANGEMENT BY ABSOLUTELY
It does, I think. Prohibited already. PROHIBITNG LABOR-ONLY
CONTRACTING, AND RESTRICTING JOB-
CONTRACTING ALLLOWED UNDER THE
*although unregistered, contractor may prove PROVISIONS OF THE LABOR CODE,AS
that he’s a legitimate contractor. AMENDED.

(why restrict such?)

*The fact of registration isn’t a conclusive proof of

being a legitimate contractor.

Section 8 of D.O NO. 174

*ACTUAL CONDUCT OF THE
Requirements of JC/SC
RELATIONSHIP, NOT MERE
REGISTRATION, PROVES INDEPENDENT 1. engaged in a distinct and independent business.
CONTRACTORSHIP.
Undertakes to perform the job according to his
own responsibility, manner, method
Facts must show:

Contractor has independent business 2. has substantial capital to carry out the job,
farmed out by principal, on his account, manner
He performs job free from control of principal
and method.
 UY, A.

Investment in the form of tools, equipment, employer together w/the contractor for
machinery and supervision any violation of a provision of the LC.
- Client-contractee becomes the total
employer of the contractor’s employees
[Link] from the control/direction of the principal - In the same manner as he is to his direct
in all matters connected to the performance of employees, to the extent of the work
work, except as to the result performed under the contract when the
contractor fails to pay wages
4. service agreement ensures compliance w. all the
rights and benefits for all the employees of the Key issue: liability is different from relationship
contractor/ subcontractor under the labor laws.

Effect of solidary liability

Capitalization
- Any one of the instances above make the
Substantial capital : contractee the employer of the
contractor’s employees
paid-up capital, stock/shares at least 5 million
(Corporations, partnership, cooperatives) (WHY TALAGA PROHIBITS/ELIMINATES
JOB CONTRACTING)
net worth of at least 5 million (Sole
proprietorship) To protect workers?!?!?!

solidary liability Concluding notes

3 sections of D.O NO. 174 that make the principal First court rulings of the consequences of LOC
the direct employer of the contractor’s employees
PHILIPPINE BANK OF COMMUNICATION
-check book for provisions- VS. ORPIADA

Sec.7 TABAS VS. CALIFORNIA MANUFACTURING

First solidary liability - Make the contractee the direct employer

of contractor’s employees
Labor only contracting - Strong and incessant reaction from
business firms

Sec.9

Second solidary liability 7 challenging questions

Any labor code violation -check book for the answers to these questions-

1. does the law really provide that the client-

contractee must become the employer of the
Sec.12 contractor’s employees of the parties are doing
labor-only contracting?
Third solidary liability
2. If in the affirmative, is such law justified and
Violation of sec. 10 or 11 of D.O No. 174
valid?

May the government impose employment

- liability of the principal pursuant to the relationship between 2 parties w/o their mutual
provisions of labor code as direct consent?
 UY, A.

Will it not minimi3 no. of small-medium

enterprises and increase prices of goods and
3. D.O NO.174 increased the instances when the services, punishing the consumers and workers?
principal becomes solidary liable w. conractor.
Regardless of contractor’s violation, contracte Is this restriction in accord w/laws promoting
becomes soliary liable. barangay enterprise and competition?

This contradicts the ruling in ROSEWOOD Who’s to be benefited by restricting job

PROCESSING CASE. contracting?

Is it not that jurisprudence is part of the law of the

land? Can it be disregarded by the new
implementing rules?
2 issues

[Link] the [Link] empower the government to [Link] of employer-employee relationship

command a private business firm what specific 2. restrictions against independent contracting
kinds of jobs must be done by its directly hired
employees?

May a new implementing rule disregard court

rulings recognizing the right of management to
decude what jobs to contract out?

5. does the law differentiate between tasks that are

“directly related” to the business versus tasks that
are “necessary and desirable”

(CAN THEY EVEN BE DIFFRERENTIATED?)

6. Why should job contracting be restricted? Does

this new policy encourage private enterprise?

Is this restriction constitutional?

Does it enhance Philippine competitiveness?

Does it invite foreign investments?

Does it create more jobs?

Will it help reduce property? Or worsen it?

Jurisdiction

7. why does a job contractor need to be a multi- Complaint brought before DOLE
millionaire to be registrable? (kase ba may notion
FINDS Er-Ee relationship
na madaming employees ang need so need ng basis
na mapapa sweldo talaga yung dami ng employees - To give effect to labor standards provisions
na yun? ) - If there’s a finding of Er-Ee relationship,
DOLe exercises jurisdiction to the exclusion
of NLRC.
 UY, A.

FINDS NO Er-Ee relationship The provisions of this Title shall apply to employees
in all establishments and undertakings whether for
- Jurisdiction is with the NLRC profit or not, but not to government employees,
- Prerogative of NLRC managerial employees, field personnel, members of
- When relationship has been terminated or the family of the employer who are dependent on him
has not risen at all for support, domestic helpers, persons in the
personal service of another, and workers who are
paid by results as determined by the Secretary of
Labor in appropriate regulations.
Complaint brought before DOLE

w/claim for reinstatement As used herein, “managerial employees” refer to

those whose primary duty consists of the
- Jurisdiction is with the Labor arbiter management of the establishment in which they are
A.224 (3), LC employed or of a department or subdivision thereof,
and to other officers or members of the managerial
staff.
Complaint filed before NLRC
“Field personnel” shall refer to non-agricultural
w/existing Er-Ee relationship employees who regularly perform their duties away
- Jurisdiction is with the DOLE from the principal place of business or branch office
of the employer and whose actual hours of work in
- Findings of DOLE may be questioned
the field cannot be determined with reasonable
Petition for certiorari certainty.
RULE 65 OF THE RULES OF COURT

(CLARIFY WHO’S WHO AND THE

FUNCTIONS OF EACH) FOUR- FOLD TEST

(Need bai memorize from 82 to 96??)

Contract of perpetual employment

- Deprives management of its prerogative on Four-fold test

who to hire/fire/promote
- Renders inutile the precepts of labor Elements of employer-employee relationship
relations
- Traditional/conventional test
- Not the sole test (need to consider the
Absolute and unqualified employment for life existing conditions between parties)

- Equal to perpetual employment [Link] & engagement of the employee

- Contrary to public policy and good customs
[Link] of wages
(differentiate this again)
- Forbids the employer from terminating one’s [Link] of dismissal
services despite existing valid/just cause
- Retain an employee that’s pass his [Link] to control
retirement age *no uniform test to determine existence of emrel
CLASSES OF EMPLOYEES relationship

ART. 82 LABOR CODE Control test

- Employer’s power/right to control employee

Art. 82. Coverage. 
 UY, A.

- Not just as to the result of the work but also

the means and methods used towards the
Circumstances of the economic activity
result
(determines er-ee relationship)
- Extent of control the hirer exercises over a
worker [Link] to which services performed are integral
(greater the control, greater the possibility part of the business
that such person is an employee)
- Most important test [Link] of worker’s investment in equipment and
- Very useful in distinguishing employee from facilities
an independent contractor (if wala siya investment, pwedeng employed talaga
*mere existence of the right to control over the sya, not independent contractor ganon)
manner of doing work is enough under the control 3. nature & degree of control exercised by
test. employer
(not the actual exercise of control) 4. worker’s opportunity for profit and loss
*issuance by the principal of guidelines doesn’t 5. amount of initiative, skill, judgment or foresight
establish control by principal. required for the success of enterprise (ha pano to?
Like abs cbn talent ba?)

*not every form of control establishes an employer- 6. permanency and duration of the er-ee
employee relationship relationship

1. Rules that serve as guidelines to achieve the 7. degree of dependence upon the employer for
mutually desired result w/o dictating the continued employment
means/methods to be employed

- Promote the result Existence of employer-employee relationship

- No Er-Ee relationship
- Determined by law not by contract
2. rules that control/fix the methodology - If parties call it “contract of lease of service,
bind/restrict the party to the use of such it’s still an er-ee relationship and covered by
the labor code
- Address both result and means
- Er-Ee exists
Evidence of employment
Economic dependence/ Economic reality test
- Competent and relevant evidence
- Whether the employee is dependent upon
the employer for his continued employment - No particular form of evidence if required
in such business. Cases where Er-Ee relationship exists
(san pa ba magrerely? Kunware sa sarili
lang, so independent contractor, like yung 1. jeepney drivers on boundary basis
artist. So di to employee?)
[Link]/ helpers of salesmen
Two-tiered approach
[Link] of unregistered association
1. putative power of employer to control the
4. street-hired kargador
employee, his means and methods by which the
work’s to be accomplished 5. workers in movie projects
[Link] economic realities of the 6. salaried insurance agent vs. commissioned
activity/relationship agents
 UY, A.

7. tailors, seamstresses,servers, basters, - [Link], instrumentalities, political

plantsadoras paid on piece-rate basis subdivisions, [Link]
- Not incorporated under the corporation code
8. in-house lawyer vs. outside retainer
2. managerial employees
9. resident physicians (private only?)
- Alter ego of their principal
10. university professors and instructors (hindi ba
- Not covered because hired on the basis of
pwedeng indepent contractor kase according to
their special training, experience, or
skills? Or Ee kase control test?)
knowledge.
11. taxi driver, barber - Value of work cant be measured in terms of
hours.
12. security guards w/respect to the security - Primary duty is the management of
agency establishment
[Link] workers - Direct the work of two/more employees
- Have the authority to hire/fire/promote
14. truck drivers employees

3 types of managerial employees

NO Er-Ee relationship -first-line managers
[Link] workers not employee of sugar central (supervisor, direct operating employees only
not other managers)
[Link] not employee of golf club
-middle managers
[Link] agents on commission basis
(direct the activities of other managers and
[Link] boys
those activities of other operating
[Link] contractors selling soft-drinks employees)

[Link] salesman -top managers

[Link] (independent contractor) (Responsible for overall management of the

organization and establishes operating
8. residency position in a medical specialty, never policies)
a permanent one
*diff under labor standards and labor relations

Absence in payroll (Add to proofs of employment)

Elements to consider as a member of the
- Inconsequential managerial staff
- Absence of time sheet, time record, payroll
has no effect

*employee compensation doesn’t determine the 3. domestic helper/ persons in the personal service
existence of Ee-Er relationship of another

- Covered by RA NO 10361/
KASAMBAHAY LAW
Not covered by this title: -
1. government employees [Link] paid by result
- Governed by Civil Service Law, rules and - Work isn’t measured by time but by result
regulations
 UY, A.

Measured: - Recommend managerial actions if its

exercise is not merely routinary but requires
By piece
the use of independent judgment
by task - (elaborate yung pag supervise adell)

*but if paid by result but time is supervised, then [Link]-and-file employees

entitled to benefits under title I.
- Any employee not falling on either of the
two above.
- (why rank-and-file?)
5. field personnel
expression comes from the military, where a rank
- Non-agricultural employees who performs denotes soldiers standing side by side in a row,
work far from principal place of business and file refers to soldiers standing behind one
- Actual hours In the field cant be determined another.
w/ reasonable certainty

Fishermen/ not field personnel

NATURE OF EMPLOYMENT
Drivers/ bus conductors/ not field personnel
ART.294, LABOR CODE

ART.295, LABOR CODE

6. family members dependent on the employer for
support REGULAR AND CASUAL EMPLOYMENT

- Amount given by employer by way of

support exceeds the benefits prescribed by
IRR, BOOK 6, RULE 1, SECTION 6
law
1. PROBATIONARY

2. REGULAR
Importance of determining existence of employer-
employee relationship 3. PROJECT EMPLOYMENT
KINDS OF EMPLOYMENT 4. SEASONAL
ART. 219, LABOR CODE 5. CASUAL
1. MANAGERIAL 6. FIXED-TERM
2. SUPERVISORY (All 6, on the basis of tenure)
3. RANK AND FILE

KINDS OF EMPLOYMENT
Types of employees (under the labor code) (RCP-SFP-SF)
[Link] employees 1. REGULAR

- Has powers/prerogatives to lay down and [Link]

execute management policies
- Hire, transfer, suspend, layoff, recall, [Link]
discharge, assign/discipline employees [Link]
[Link] employees [Link]-TERM

[Link]
 UY, A.

[Link] GUARD AND OTHER PRIVATE [Link] for more than 1 year (pano pag exact one
SECURITY PERSONNEL year)

[Link] STATUS

CASUAL EMPLOYMENT

REGULAR EMPLOYMENT - Employee engaged to perform a job/service

that’s incidental to the business of em n
- Employee engaged to perform activities PLOYER
necessary/desirable to the usual business of - Definite period
employer
- Regular status attaches to casual employee
- Rendered at least 1 year of service
upon a service of one year
(continuous/broken, depends on the activity)
- Only casual for a year
- Allowed to work after a probationary period
- Passage of time gives him a regular status
Tests of regularity - Janitor, janitress???

[Link] of work test practice of hiring employees on an as-needed

basis
- WON there’s a reasonable connection between
activity of the employee and business of employer. during a busy period, a marketing agency
may hire casual graphic designers to complete
-if usually necessary to the business, employment is freelance tasks. These professionals provide a
deemed regular. temporary service for the company.
[Link] of service necessary and desirable position
-WON employee rendered at least 1 yr of service - refers to a position that is needed, and
-allowed to work for a year (continuous/broken) without which an employer would not be
able to operate his business.
-considered as regular employee - cook in a restaurant
- software development firm. A
[Link] employment test
programmer in such a firm
-allowed to work after the probationary period

-considered regular employee

Purpose:

to give meaning to constitutional guarantee of

Special groups of employees security of tenure, right to self-organization

[Link] and seafarers (employment

regularization depends on the contract
PROJECT EMPLOYMENT
signed/renewed)
- Employment’s fixed for a specific project
[Link] school teachers
- Completion/termination is determined at
time of engagement

For piece-rate workers to be regularized General rule: proj employees are not reg
employees
1. work is necessary to the business
Exception: if the services of such employees are
[Link] throughout the year w/o depending on extended/ extended employment after supposed
season/specific project project has been finished then the employees are
deemed regular employees.
 UY, A.

[Link], while not employed and waiting, can

offer his services to others
When a proj employee may become a regular
employee [Link] is reported to DOLE regional office
having jurisdiction over the workplace
1. continuous rehiring of project employees
6. undertaking by employer to pay completion
(even after cessation of proj, same tasks/nature, w/o bonus, as practiced by most construction
gaps or intervals of hiring) companies (SAMSON VS NLRC)
[Link] performed are vital, necessary and
indispensable to the usual business of employer.
Test to determine whether employees are “project
Project employees”
- Particular job - WON employees are assigned to carry out a
- May/may not be w/regular business of specific undertaking
employer - Duration/ scope are specified at the time of
- Must be distinct, separate and identifiable engagement
from the main business of employer
- Duration must be determined/determinable *proj employees are not entitled to separation pay

Work pool principle *only enjoy security of tenure during the term of
their proj employment
- Group of workers
- From which an employer draws the workers *no prior termination required if brought by the
it deploys/assigns to projects/phase completion of a proj
- Employees may/not be part of this *when proj employee gained regular status,
- Construction company separated from employment on the alleged
Members of a work pool completion of proj. separation is unjustified.
Employee’s entitled to reinstatement
[Link]-project employees/ employees for an w/backwages. (MARAGUINOT AND ENERO VS
indefinite period NRLC)

- Completion of a project will not severe the

emrel
SEASONAL EMPLOYMENT
[Link] employees
- Employee engaged to work during a
- Employed in a particular proj particular season
- Free to leave and offer the proj anytime - Activity necessary in the business
to other
*during off season, emrel is not severed but only
*membership in the work pool doesn’t equate to a suspended.
regular status.
*Employee’s considered on leave of absence w/o
pay

Indicators of project employment

[Link] of said project is reasonably When Seasonal employees considered as regular

determinable
[Link] connection between activity and
2. duration is defined in an employment usual business
agreement
[Link] workers repeated engaged to perform
[Link] performed is connected to the proj same tasks for more than 1 season.
 UY, A.

[Link]-ee dealt w/each other on equal terms with no

moral dominance
FIXED-PERIOD EMPLOYMENT

- Employment contract will last for only a

definite period GENERAL RULE:
- Not a regular employee
- Fixed-term employment is valid as long
- Job exists only for a specified period of time
as criteria are complied with
Deemed regular in 2 senses
EXCEPTIONS
[Link] is necessary to the business
- If it’s apparent that periods have been
[Link] security of tenure during employment imposed to preclude acquisition of security
of tenure, should be struck down
- Contrary to public policy
*can be a regular employee with a fixed-term Rules on fixed-term employment
contract.
[Link] of termination isn’t necessary
*proj employment is also fixed-period
employment [Link] deemed regular if period isn’t
stated/failed to do so
*not all fixed-period employment are
project/seasonal employment. 3. termination prior to lapse of period agreed
upon must be for a just/authorized cause

[Link] for illegal dismissal is only for salary for

Definite period of employment unexpired portion
Nature of employment [Link] allowed to work beyond fixed-period
*the necessity of such job performed doesn’t are deemed regular employees.
forbid parties from agreeing on the period of
employment.

Reason for validity of fixed-period employment

PROBATIONARY EMPLOYMENT
Brent doctrine
- Employee has to undergo a trial period
- Freedom of parties to contract
- Employer determines his fitness to qualify
- As long as not contrary to LAMOGPUPU for regular employment
CASES where fixed-term employees are - based on reasonable standards made known
considered regular employees to employee beforehand
- Under observation by employer
[Link] were allowed to work beyond the
fixed-term w/o benefit of a new contract GENERAL RULE:

[Link] for more than 1 year, reasonable - 6months duration

connection of said activity w/the business
EXCEPTIONS
[Link] renewals, reasonable connection again
- Covered by apprenticeship agreement
Criteria for validity of fixed-term employment stipulation a longer period
- Parties agree otherwise
[Link] period is knowingly and voluntarily agreed - Established by company policy
upon by the parties
 UY, A.

- Required by nature of the work (sb barista [Link] on employer must be real and in
may 6mos na magrerender ganon?) good faith

*if any of the exceptions doesn’t exist then [Link] unlawful discrimination in dismisssal
employee works for more than 6mos then he’s
Standard for regularization
considered as a regular employee.

*in all cases, the employer must make the - Not the job description but the adequate
standards for regularization know to the performance of his duties and
employee. If not, latter’s deemed as a regular responsibilities
employee.

*probationary employment must be agreed upon JOB CONTRACTING

by both parties. If not, deemed regular
employment. ART. 106 – ART. 109, LABOR CODE

*employee and employer may extend probation DEPARTMENT CIRCULAR NO. 174
period but cant be AD INFINITUM.
EFFECTS OF LABOR-ONLY CONTRACTING
*double/successive probation is not allowed.
TRILATERAL RELATIONSHIP IN JOB-
*regular status after probationary period CONTRACTING

Termination of probationary employment A.106

- Protected by security of tenure during and Art. 106. Contractor or subcontractor. 

before the end of probationary period
- Entitled to procedural due process prior to Whenever an employer enters into a contract with
dismissal another person for the performance of the former’s
- 3rd ground doesn’t require notice and work, the employees of the contractor and of the
hearing, only the 2 grounds latter’s subcontractor, if any, shall be paid in
- Must be done before lapse of probationary accordance with the provisions of this Code.
period
- If after lapse, must be under due process, In the event that the contractor or subcontractor fails
kase deemed regular employee na to pay the wages of his employees in accordance with
this Code, the employer shall be jointly and severally
May be dismissed before expiration on the grounds liable with his contractor or subcontractor to such
of employees to the extent of the work performed under
the contract, in the same manner and extent that he is
1. just cause liable to employees directly employed by him.
[Link] cause
The Secretary of Labor and Employment may, by
3. fails to qualify as a regular employee, in appropriate regulations, restrict or prohibit the
accordance w/ reasonable standards contracting-out of labor to protect the rights of
workers established under this Code. In so
prohibiting or restricting, he may make appropriate
distinctions between labor-only contracting and job
Limitations to the power of an employer to dismiss contracting as well as differentiations within these
an employee on probation types of contracting and determine who among the
parties involved shall be considered the employer for
[Link] must be exercised in accordance
purposes of this Code, to prevent any violation or
w/contract’s requirements circumvention of any provision of this Code.
 UY, A.

There is “labor-only” contracting where the person (ISFS)

supplying workers to an employer does not have
substantial capital or investment in the form of tools, 1. contractor is engaged in a distinct and
equipment, machineries, work premises, among independent business.
others, and the workers recruited and placed by such
person are performing activities which are directly Undertakes to perform the job on its own
related to the principal business of such employer. In responsibility, according to his own method.
such cases, the person or intermediary shall be
considered merely as an agent of the employer who
shall be responsible to the workers in the same 2. Has substantial capital to carry out the job
manner and extent as if the latter were directly farmed out.
employed by him.
On his account, manner and method, investment
*1 2 paragraphs -general rule
st in the form of tools, equipment, machinery and
supervision.
Principal is permitted by law to engage the services
of a contractor. [Link] from control/ discretion of the principal in
all matters connected to the work EXCEPT as to
the result.
3rd paragraph – distinction made by sec of labor
4. service agreement ensures compliance w/all
Permissible job contracting and labor-only rights and benefits for all the employees of the
contracting (prohibited) contractor under the labor laws.

*absence of any of the requisites makes it a

CONTRACTOR/ SUB-CONTRACTOR LABOR-ONLY CONTRACTING
AGREEMENT.
D.O. NO. 174 SERIES OF 2017

- Basis of contracting section

- March 16, 2017 (promulgation date) Substantial capital
- D.O. NO. 18-A (prior rule)

Types of contracting (under the law) Corporations, partnerships, cooperatives

[Link]/subcontracting - Paid-up capital stocks/shares

[Link]-only contracting
- At least php5,ooo,ooo
Job contracting/ sub-contracting
Single proprietorship
- Arrangement whereby principal hires a
contractor for the performance/ completion - Net worth of at least php5,000,000.
of a specific job
- Pre-determined period
*substantial capital and investment in
- Regardless if to be performed/completed tools/equipments are 2 distinct and separate
outside/within the premises of the principal requirements in determining whether there’s
permissible contracting/subcontracting arrangement.

(so pag wala yung isa, di pwede?)

Elements of legitimate contracting/sub- *law dooesnt require both substantial acapital and
contracting investment in the form of tools etc. (NERI VS
NLRC)
 UY, A.

- with a copy of its service agreements in the

area for purposes of monitoring and
Trilateral relationship compliance
[Link] What if no certificate of registration?
[Link]/ subcontractor - Only gives rise to the presumption that it’s a
3. contractor’s employees labor-only contracting
- Disputable presumption
-
2 kinds of contracts required in a trilateral Grounds for cancellation of registration
relationship
[Link] of facts
1. employment contract
[Link]-submission of service agreements (when
-between contractor and its employees required to do so)
2. service agreement [Link]-submission of required semi-annual report
-between principal and contractor [Link]-compliance w/labor standards and working
conditions
-terms and conditions governing the performance of
farmed out job 5. non-compliance with SSS, HDMF, Pag-ibig,
Philhealth, ECC laws

[Link] of falsified/tampered
Mandatory registration
application/supporting documents during
Registry of legitimate contractors application for registration

- Mandatory for all persons/entities acting 7. collecting fees not authorized by law
as contractors to register w/
8. arbitration findings that such contractor has
REGIONAL OFFICE of DOLE where
engaged in labor-only contracting and other
it principally operates
prohibited activities/ sec.6
- Consistent with sec of labor and
employment’s authority to [Link] of violation of
restrict/prohibit contracting out of labor
- To protect workers’ rights sec.10 (rights of contractor’s employees)

Validity of certificate of registration of sec. 11 (required contracts)

contractors 10. violations of any provision of the labor code
- Registered only on the date of issuance
- Effective for 2 years (UNLESS
CANCELLED AFTER DUE PROCESS)
- Valid in the region where it is registered
Effects of cancellation of registration
*if contractor has service agreements/
- Divest the contractor of its legitimate status
operates outside the jurisdiction where it’s
to engage in contracting.
registered, it shall request a duly
- Ground to deny an application for renewal
authenticated copy of COR from such
of registration to a contractor
regional office and submit to DOLE regional
office where it seeks to operate. - Will not impair the validity of existing
legitimate job contracting arrangements
(prior to the cancellation)
 UY, A.

- Shall make the principal the direct employer - contractor which is

under the service agreements owner/managed/controlled, directly or notm
by the principal
Labor-only contracting - one where he has shares
- Contractor merely recruits, supplies, places - operates solely for the principal
workers to perform a job for the principal
- Legally wrong
- Attempt to evade the obligations of an  requiring the
employer (by not providing employees of contractor’s/subcontractor’s employees
the rights they’re entitled to)
1. to perform functions which are currently being
Any of the 2 elements are present performed by the regular employees

contractor/subcontractor: 2. to sign, as a precondition to employment, an

antedated resignation letter, blank payroll, waiver
- doesn’t have substantial capital /investments of labor standards, quitclaim, require an employee
(direct relation to principal’s business to be part of a cooperative
test)
- Employees recruited and place are  requiring an employee to sign a contract
performing activities directly relayed to the w/ a period shorter than what’s in the
main business of the principal service agreement
- doesnt exercise the right to control over the
- unless the contract is divisible into phases, diff
performance of the work of the employee
skills required, made known to the employee
*there’s labor-only contracting even if only one of beforehand
the 2 elements above is present.
 repeated hiring by contractor of
employees under a short-term contract
 other practices/schemes/employment
Illicit forms of Employment arrangements arrangements designed to circumvent the
 Contracting out jobs/works/services right to security of tenure

[Link] an in-house agency

[Link]-house cooperative, merely supplies workers Inapplicability of [Link].174-17

3. by reason of strike/lockout ([Link] 01, series of 2017)

4. performed by union members when such will prohibition against labor-only contracting isn’t
interfere in the exercise of their rights to self- applicable to
organization 1. business process outsourcing (BPO)
Cabo 2. knowledge process outsourcing (KPO)
- person/group/labor group 3. IT infrastructure outsourcing
- under the guise of labor org/cooperative
- supplies workers to an employer 4. legal process outsourcing (LPO)
- with or w/o any monetary or other 5. hardware/software support
consideration
- agent/ independent contractor 6. application development

in-house agency [Link] transcription

8. back office operations/support

 UY, A.

9. animation services

10. construction industry

[Link] security agencies

(except for registration requirements) ++++++ PROVISIONSSSS

12. other contractual relationships

-contract of sale/purchase ARTICLE 82

-lease
Coverage
-carriage
 The provisions of this Title shall apply to
-grower/growership agreement employees in all establishments and
undertakings whether for profit or not, but
-toll manufacturing
not to government employees, managerial
-contract of management, operation and employees, field personnel, members of the
maintenance family of the employer who are dependent on
him for support, domestic helpers, persons
-contracting out of job/work to in the personal service of another, and
professional/individual w/unique skills and talents workers who are paid by results as
(who himself/performs for principal) determined by the Secretary of Labor in
appropriate regulations.
-other contracts in the civil code/special laws
As used herein, “managerial employees”
refer to those whose primary duty consists
DOES BEING A TEMPORARY EMPLOYEE of the management of the establishment in
which they are employed or of a department
EQUATE TO FREELY BEING TERMINATED
or subdivision thereof, and to other officers
BY THE EMPLOYEE? DO TEMPORARY
or members of the managerial staff.
EMPLOYEES ENJOY SECURITY OF
TENURE?
“Field personnel” shall refer to non-
agricultural employees who regularly
perform their duties away from the principal
( CONSIDERED BY THE CONSTI. ALL place of business or branch office of the
EMPKOYEES. THEY’RE EMPLKOYEES. employer and whose actual hours of work in
YES? FOR THE PERIOD AGREED UPON?) the field cannot be determined with
reasonable certainty.

IS FIXED-TERM EMPLOYMENT DIFF FROM

TEMPORARY? (NO? KASE UNDER?
COVERED BY. VARIETY OF TEMPORARY)
BOOK V – LABOR RELATIONS
A.106
TITLE II – DEFINITIONS
A.107 – INDIRECT EMPLOYER
ARTICLE 219
A.108- POSTING OF FUND

A.109- SOLIDARY LIABILITY OF THE Art. 212.

PRINCIPAL
a. “Commission” means the National
Labor Relations Commission or any
of its divisions, as the case may be,
UY, A.

as provided under this Code. assisted by any act defined as unfair

  labor practice by this Code.
b. “Bureau” means the Bureau of Labor  
Relations and/or the Labor Relations j. “Bargaining representative” means a
Divisions in the regional offices legitimate labor organization whether
established under Presidential or not employed by the employer.
Decree No. 1, in the Department of  
Labor. k. “Unfair labor practice” means any
  unfair labor practice as expressly
c. “Board” means the National defined by the Code.
Conciliation and Mediation Board  
established under Executive Order l. “Labor dispute” includes any
No. 126. controversy or matter concerning
  terms and conditions of employment
d. “Council” means the Tripartite or the association or representation
Voluntary Arbitration Advisory of persons in negotiating, fixing,
Council established under Executive maintaining, changing or arranging
Order No. 126, as amended. the terms and conditions of
  employment, regardless of whether
e. “Employer” includes any person the disputants stand in the proximate
acting in the interest of an employer, relation of employer and employee.
directly or indirectly. The term shall  
not include any labor organization or m. “Managerial employee” is one who is
any of its officers or agents except vested with the powers or
when acting as employer. prerogatives to lay down and execute
  management policies and/or to hire,
f. “Employee” includes any person in transfer, suspend, lay-off, recall,
the employ of an employer. The term discharge, assign or discipline
shall not be limited to the employees employees. Supervisory employees
of a particular employer, unless the are those who, in the interest of the
Code so explicitly states. It shall employer, effectively recommend
include any individual whose work such managerial actions if the
has ceased as a result of or in exercise of such authority is not
connection with any current labor merely routinary or clerical in nature
dispute or because of any unfair but requires the use of independent
labor practice if he has not obtained judgment. All employees not falling
any other substantially equivalent within any of the above definitions
and regular employment. are considered rank-and-file
  employees for purposes of this Book.
g. “Labor organization” means any  
union or association of employees n. “Voluntary Arbitrator” means any
which exists in whole or in part for person accredited by the Board as
the purpose of collective bargaining such or any person named or
or of dealing with employers designated in the Collective
concerning terms and conditions of Bargaining Agreement by the parties
employment. to act as their Voluntary Arbitrator, or
  one chosen with or without the
h. “Legitimate labor organization” assistance of the National
means any labor organization duly Conciliation and Mediation Board,
registered with the Department of pursuant to a selection procedure
Labor and Employment, and includes agreed upon in the Collective
any branch or local thereof. Bargaining Agreement, or any official
  that may be authorized by the
i. “Company union” means any labor Secretary of Labor and Employment
organization whose formation, to act as Voluntary Arbitrator upon
function or administration has been the written request and agreement of
 UY, A.

the parties to a labor dispute. unjustly dismissed from work shall be

  entitled to reinstatement without loss of
o. “Strike” means any temporary seniority rights and other privileges and to
stoppage of work by the concerted his full backwages, inclusive of allowances,
action of employees as a result of an and to his other benefits or their monetary
industrial or labor dispute. equivalent computed from the time his
 
compensation was withheld from him up to
p. “Lockout” means any temporary
the time of his actual reinstatement. (As
refusal of an employer to furnish
work as a result of an industrial or amended by Section 34, Republic Act No.
labor dispute. 6715, March 21, 1989)
 
ARTICLE 295- REGULAR AND CASUAL EMPLOYMENT
q. “Internal union dispute” includes all
disputes or grievances arising from The provisions of written agreement to the
any violation of or disagreement over contrary notwithstanding and regardless of
any provision of the constitution and the oral agreement of the parties, an
by laws of a union, including any employment shall be deemed to be regular
violation of the rights and conditions where the employee has been engaged to
of union membership provided for in perform activities which are usually
this Code. necessary or desirable in the usual business
  or trade of the employer, except where the
r. “Strike-breaker” means any person employment has been fixed for a specific
who obstructs, impedes, or interferes project or undertaking the completion or
with by force, violence, coercion, termination of which has been determined at
threats, or intimidation any peaceful the time of the engagement of the employee
picketing affecting wages, hours or or where the work or service to be performed
conditions of work or in the exercise is seasonal in nature and the employment is
of the right of self-organization or for the duration of the season.
collective bargaining.
 
An employment shall be deemed to be casual
s. “Strike area” means the
if it is not covered by the preceding
establishment, warehouses, depots,
paragraph: Provided, That any employee who
plants or offices, including the sites
has rendered at least one year of service,
or premises used as runaway shops,
whether such service is continuous or
of the employer struck against, as
broken, shall be considered a regular
well as the immediate vicinity actually
employee with respect to the activity in
used by picketing strikers in moving
which he is employed and his employment
to and fro before all points of
shall continue while such activity exists.
entrance to and exit from said
establishment. (As amended by
Section 4, Republic Act No. 6715,
March 21, 1989)
IRR BOOK 6 RULE 1 SECTION 6

SECTION 6. Probationary employment. —

BOOK VI – POST EMPLOYMENT (a) Where the work for which an employee has
been engaged is learnable or apprenticeable in
TERMINATION OF EMPLOYMENT accordance with the standards prescribed by the
Department of Labor, the probationary
ARTICLE 294 – SECURITY OF TENURE
employment period of the employee shall be
In cases of regular employment, the limited to the authorized learnership or
employer shall not terminate the services of apprenticeship period, whichever is applicable.
an employee except for a just cause or when
(b) Where the work is neither learnable nor
authorized by this Title. An employee who is
apprenticeable, the probationary employment
 UY, A.

period shall not exceed six (6) months reckoned There is “labor-only” contracting where the
from the date the employee actually started person supplying workers to an employer
working. does not have substantial capital or
investment in the form of tools, equipment,
(c) The services of an employee who has been machineries, work premises, among others,
engaged on probationary basis may be terminated and the workers recruited and placed by
such person are performing activities which
only for a just cause or when authorized by existing
are directly related to the principal business
laws, or when he fails to qualify as a regular of such employer. In such cases, the person
employee in accordance with reasonable standards or intermediary shall be considered merely
prescribed by the employer. as an agent of the employer who shall be
responsible to the workers in the same
(d) In all cases involving empyees engaged on manner and extent as if the latter were
probationary basis, the employer shall make known directly employed by him.
to the employee the standards under which he will
qualify as a regular employee at the time of his
engagement.

ARTICLE 107
ARTICLE 106
INDIRECT EMPLOYER
CONTRACTOR/SUBCONTRACTOR
An employer or indirect employer may
require the contractor or subcontractor to
Whenever an employer enters into a contract
with another person for the performance of furnish a bond equal to the cost of labor
the former’s work, the employees of the under contract, on condition that the bond
contractor and of the latter’s subcontractor, will answer for the wages due the employees
if any, shall be paid in accordance with the should the contractor or subcontractor, as
provisions of this Code. the case may be, fail to pay the same.

In the event that the contractor or

subcontractor fails to pay the wages of his ARTICLE 108
employees in accordance with this Code, the
employer shall be jointly and severally liable POSTING OF BOND
with his contractor or subcontractor to such
employees to the extent of the work An employer or indirect employer may
performed under the contract, in the same require the contractor or subcontractor to
manner and extent that he is liable to furnish a bond equal to the cost of labor
employees directly employed by him. under contract, on condition that the bond
will answer for the wages due the employees
The Secretary of Labor and Employment should the contractor or subcontractor, as
may, by appropriate regulations, restrict or the case may be, fail to pay the same.
prohibit the contracting-out of labor to
protect the rights of workers established
under this Code. In so prohibiting or
restricting, he may make appropriate ARTICLE 109
distinctions between labor-only contracting
and job contracting as well as SOLIDARY LIABILITY
differentiations within these types of
The provisions of existing laws to the
contracting and determine who among the
parties involved shall be considered the contrary notwithstanding, every employer or
employer for purposes of this Code, to indirect employer shall be held responsible
prevent any violation or circumvention of any with his contractor or subcontractor for any
provision of this Code. violation of any provision of this Code. For
 UY, A.

purposes of determining the extent of their 2. Gross and habitual neglect

civil liability under this Chapter, they shall be 3. Fraud/willful breach
considered as direct employers. 4. Commission of a crime/ offense
5. Other causes analogous

“Totality of infractions” doctrine

D.O NO. 172 SERIES OF 2017
- No. of violations committed during the
period of employment shall be considered
in determining the penalty to be imposed
on erring employee.
- Offenses committed SHOULD NOT BE
taken singly and separately in their
totality

Entitlement to separation pay

General rule:

employee who’s terminated due to a just cause

isn’t entitled to separation pay.

EXCEPT if expressly provided for in the company

policy/CBA.

Reason:

law breakers shouldn’t benefit from their illegal

acts.

Except:

Court finds justification in applying the principle

of social justice, entrenched in the 1987 consti.

*employer dismisses for a valid cause, although

not entitled to separation pay,

Still entitled to:

1. Benefits under the labor code/ other

existing laws
2. Benefits granted by CBA provisions
3. Benefits granted by voluntary
management policy/practice
TERMINATION OF EMPLOYMENT Two-fold due process requirement

1. Substantive aspect
- Dismissal must be for any of the just
TERMINATION BY EMPLOYER
causes/authorized cause
(A.297) 2. Procedural aspect
- Employee must be accorded due process
Just causes for termination

1. Serious misconduct/ willful disobedience Elements of due process:

 UY, A.

Notice a disgraceful act when she and the father have no

Opportunity to be heard and defend impediment to marry each other.
himself
(pag mistress sya, immoral na?)
1. Serious misconduct
Misconduct

- Transgression of established and definite

rule of action/ forbidden act/ dereliction
of duty
2. willful disobedience/ insubordination
- Willful in character and implies wrongdul
intetn, NOT MERE ERROR
- Refusal to obey superior’s order
- Willful/ intentional disregard of lawful
o Requisites
and reasonable instructions of the
 Presence of misconduct
employer
 Grave and aggravated character of
- Disobedience of lawful orders of the
misconduct
employer/ his representative
 Relates to the performance of employee’s
- In connection w/his work
duties
 Shows that the employee becomes unfit to
continue working for the employer o Requisites
 Presence of disobedience
Ex. sexual harassment  Willful/intentional characterized by a
wrongful and perverse attitude
falsification of time record  Order violated must be reasonable,
uttering offensive words against a superior lawful, and made known to the
employee
sexual intercourse inside company premises  Order must pertain to the duties he’s
engaged to discharge
determination whether conduct is
disgraceful/immoral *no law that compels an employee to accept a
promotion
2-step process
“qui jure suo utitur neminem laedit”
1. Consideration of the totality of the
circumstances He who uses his own legal right injures no one.
2. Assessment of said circumstances vis-à-vis
the prevailing norms of conduct Ex. Failure to answer memo to explain

(what society generally considers moral and (another notice is required if termination on the
respectable) ground of failure to answer memo to explain)

*law speaks of immoral/disgraceful conduct, Refusal to undergo random drug testing

pertains to public and secular morality NOT CONSTITUTES BOTH SERIOUS
RELIGIOUS MISCONDUCT AND INSUBORDINATION

Conducts which are proscribed because Refusal to render overtime to meet production
detrimental to conditions upon which existence deadline
and pprogressof human society depends on

Ex. pregnancy out of wedlock of an employee 3. Gross and habitual neglect

who’s employed in an educational institution isn’t
 UY, A.

- Neglect of duties must NOT ONLY BE *MERE FAILURE TO REPORT FOR WORK
GROSS BUT ALSO HABITUAL AND after notice to return doesn’t constitute
WORK-RELATED. abandonment.

“gross neglect” Due process in abandonment

- Absence of that diligence that an 1. First notice

ordinarily prudent man would use in his - Apprise employee of the particular
affairs. acts/omissions for which his dismissal is
sought.
“habitual neglect”

- Repeated failure to perform one’s duties 2. Second notice

over a period of time, depending upon the - Inform employee of the employer’s
circumstances. decisions to dismiss him on the ground of
abandonment.

*notices must be sent to employee’s last known

o Requisites address
 Presence of neglect of duty
Hearing requirement
 Gross and habitual character of
negligence - Complied with as long as there’s an
*sufficiency of the evidence and resultant damage opportunity to be heard
to the employer should be considered in the - Not necessarily an actual hearing to be
dismissal of the employee. conducted

*unsatisfactory rating can be a just cause ONLY

IF IT AMOUNTS TO GROSS AND HABITUAL *charge of abandonment is inconsistent w/
NEGLECT OF DUTY. immediate filing of complaint for illegal dismissal.

*poor/unsatisfactory performance of an employee Filing’s a proof of one’s desire to work, negating

DOES NOT MEAN THAT HE’S GUILTY OF suggestion of abandonment.
GROSS AND HABITUAL NEGLECT OF BUT THE RULE HAS NO APPLICATION
DUTIES. WHEN COMPLAINANT ASKS FOR
*Actual damges, loss, injury IS NOT AN SEPARATION PAY AND NOT FOR
ESSENTIAL REQUISITE FOR VALID REINSTATEMENT.
DISMISSAL.

Forms of neglect of duty *abandonment is a matter of intention and cant be

1. Habitual tardiness & absenteeism lightly be presumed from certain equivocal acts.
2. Abandonment of work

*operative act= employee’s ultimate act of putting

o Requisites an end to his employment
 Unauthorized and inexcusable Ex. Subcontracting for another company
absences
 Abandonment of work Failed to report after expiree of approved leave of
absence
*employee failed to report for work w/o any valid
and justifiable reason and he had a clear intention Failed to comply with order for his reinstatement
to severe employment relationship by overt act
CONSTITUTES ABANDONMENT.
 UY, A.

 Should not be used as a subterfuge for

4. Fraud/willful breach of trust causes which are improper, illegal,
unjustified
Fraud/dolo  Genuine and not a mere afterthought
- Conscious and intentional design to evade to justify an earlier action taken in
normal fulfillment of an obligation bad faith
- Act/omission/concealment which involves 2 classes of positions of trust
a breach of legal duty, trust or confidence
- Injurious to another 1. Managerial employees
2. Regularly handle significant amount of
Willful breach of trust money/property (normal and routine
exercise of their functions, cashier)
- Done intentionslly, knowingly, and
purposely w/o justifiable excuse *Degree of proof required
- Work-related and against employer/his
representative For rank-and file employee:

it requires higher proof of involvement in the

events in question.
o Requisites
 Presence of act,omission, concealment Mere uncorroborated assertions and accusations
 Above consist of breach of legal duty, by the employer will not suffice.
trust, confidence For managerial employee:
 Committed against employer/ his
representative *mere existence of a basis for believing that he
 In connection w/employee’s work breached the trust of his employer would suffice
for his dismissal.
Ex. Head supervisor initiating and leading a
boycott *there must be a reasonable ground

Habitual absence of managerial employee

Stealing company property *employers have a wider latitude of discretion in

terminating the employment of managerial
personnel/ those performing functions that
Loss of confidence require employer’s full trust and confidence

- Condition arising from fraud/ breach of *not the job title but actual work that employee
trust perfomrs that determines whether he occupies a
position of trust and confidence

5. Commission of a crime/ offense

o Requisites/ guidelines in application of
DOCTRINE OF LOSS OF
CONFIDENCE o Requisites
 Presence of act,omission, concealment  Presence of act/omission
 Such justifies the loss of trust and punishable/prohibited by law
confidence of the employer  Committed by employer against his
 Employee must be holding a position employer
of trust and confidence
(if bagger naman so hindi) immediate member of employer’s family
 Loss of trust and confidence (husband,wifie, parents,children, siblings
shouldn’t be simulated full or half blood)
 UY, A.

representative Due process to be observed by the employer

*conviction of an employee in a criminal case IS *constitutes essential elements of due process

NOT INDISPENSABLE (so essential) to warrant
his dismissal by his employer 1. Notice (twin notice rule)
2. Hearing/conference
Fact that a criminal complaint against employee
has been dropped, isn’t binding and conclusive
upon the labor tribunal. Due process of law

- Giving opportunity to be heard before

6. Analogous causes judgment is rendered
- Due tp the voluntary/willful act/omission *no violation of due process even if no hearing
of the employee was conducted but party was given a chance
to explain his side.
o Requisites
 Presence of act/omission similar to *denial of the opportunity to be heard is the
those specified just causes issue here.
 Voluntary/willful

*no act/omission shall be considered analogous

TBC!!!!!!!!!!!!
UNLESS EXPRESSLY SPECIFIED IN THE
COMPANY RULES AND P.164
REGULATIONS/POLICIES.

EX. Violation of company rules and regulations

Gross inefficeicny

Theft of property of co-employee

Other just causes

(Recognized under labor code)

1. Union officers who knowingly participate

in an illegal strike Authorized causes for termination
2. Employee/ union officer/ member who Memaid:
participates in commission of illegal acts
during a stricke 1. Automation
3. Strikers who violate orders, prohibitions, Installation of labor-saving device
injunctions issued by sec of labor/ NLRC 2. Redundancy
4. Violation of union security caluse 3. Retrenchment
stipulated in the CBA 4. Closure/cessation of operation of the
establishment/undertaking
Doctrine of incompatibility 5. disease
- Employee has done something that’s Syllabus:
contrary w/faithful performance of his
duties 1. Redundancy
- Employer has just cause for terminating 2. Retrenchment
his employment 3. Closure of business
4. Disease
 UY, A.

[Link]/robotics *law doesn’t require that employer should be

suffering financial losses before he can terminate
- introduction of labor-saving employees on the ground of redundancy.
machinery/devices (robot, dunkin donut)
- Reduction of the number of workers made
necessary because of such
Evidence to substantiate redundancy
o Requisites (5) 1. New staffing pattern
2. Feasibility studies/proposal on the
 There must be an Introduction of viability of the newly created positions
machinery/equipment 3. Job description
 Introduction done in good faith 4. Approval by the management of the
 Purpose must be valid restructuring
To save cost, enhance efficiency and other
justifiable economic reasons [Link]/ downsizing
 No other option but to introduce such
- Economic ground for dismissing employees
machinery/equipment/device &
- Resorted to primarily avoid /minimize
consequent termination of employment of
business losses
those affected (be careful with this req)
- Reduction of personnel
 Fair and reasonable criteria in selecting
- Due to poor financial returns
employees to be terminated
- Cut down on costs of operations (salaries,
[Link] wages)
- Avoid bankruptcy
- Condition where..
- Services of an employee are in excess of
what’s reasonably demanded by actual
requirements of enterprise o Requisites (5)
- Superfluous, unnecessary  Retrenchment must be reasonably
necessary & likely to prevent business
o Requisites (5) losses
 Losses, if already incurred, are not merely
de minimis, BUT SUBSTANTIAL,
 There must be superfluous
SERIOUS, ACTUAL, REAL
positions/services
If only expected, are reasonably imminent
 In excess of reasonably demanded by the
 Expected/actual losses must be proved by
business to operate in an economical and
sufficient and convincing evidence
efficient manner
 Done in good faith
 Good faith in abolishing redundant
For the advancement of interest, not to
positions
defeat/circumvent employee’s right to
 Fair and reasonable criteria in selecting
security of tenure
 Adequate proof of redundancy
 Fair and reasonable criteria on who
(ex. New staffing pattern, feasibility
should be dismissed and retained
study, restructuring)
(status, efficiency, seniority, physical
*reorganization is a cost saving device. fitness, age, financial hardship)
(jurisprudence)

*employer isn’t precluded from adopting a new

Retrenchment redundancy
policy conducive to a more economical and
purpose
effective management
- Reduces the no. of -Purposes of economy
personnel to prevent -company reorganizes
further losses its departments
by imposing on duties
 UY, A.

performed by company affected by the retrenchment

employees of a program
department the duties - last one employed will necessarily be the
performed by the first to go
other dep
- however, no law mandates LIFO
-makes services of the
latter unnecessary
reason: host of relevant factors come into
play in determing cost efficient measure
-duties now performed
by the former and choosing employees to be
retained/separated to save company from
-validly terminated on closing
the ground of (management has pre-eminent role to do
redundancy such)
Employer’s business
*in cases of installation of automation,
status
redundancy and retrenchment, LIFO shall apply
-act of the employer -doesn’t need that
-dismiss employees business incurred when an employee volunteers to be separated from
losses/ declined employment.
Because of -can be done even if
“hobson’s choice”
-- lossess in operation business is doing well
-lack of work -position of employee is - no choice at all
-considerable already in excess of - choice between accepting what’s offered
reduction on the what the enterprise
or having nothing at all
volume of business requires
ex. Employees were given the choice either to
voluntarily retire, be retrenched w/benefits or be
domissed w/o receiving any benefit at all
”to prevent losses”
(lahat detrimental to his survival/status as an
- means that retrenchment/termination is
employee)
authorized to be done sometime before
losses anticipated are actually sustained
- actual lossess isn’t needed prior to
retrenchment [Link]

Cessation of operation of the establishment

*employer bears the burden to prove that there’s - Complete/partial cessation of the operations/
loss/anticipated loss. shutdown of the establishment
- To either starve off the financial
Clear and substantial evidence needed. ruin/promote business interest (elaborate)
If not. dismissal is unjustified
o Requisites
 There must be a decision to close/cease
operation of the enterprise by the
“last in, first out” rule (LIFO) management
OR :first in, last out” (FILO)  Decision made in good faith (like para ba
takasan mga pinag utangang ganon)
- applies to termination of employment in  No other option available but t o
the same line of work close/cease operations
- when there are 2/more employees
occupying the same position in the
UY, A.

[Link]

o Rules o Requisites
1. closure is due to serious business  Employee is suffering from any disease.
losses, no separation pay is required.  Continued employment is prohibited by
law/prejudicial to his health as well as to
*Exemption pertains only to employer’s his co-employees
obligation under A.297 OF LC.  Must be certification by a competent
public authority that the disease is
If obligation to pay separation benefits incurable within a period of 6 months
isn’t source from law, BUT FROM even w/proper medical treatment
CONTRACT, CBA, an examination of
provisions of such is necessary to *termination of services due to health reasons
determine parameters of said obligation must be effected only upon compliance
to pay. w/above reqs. (all ba ?)

*A.299 doesn’t apply in case of death

(A.297, JUST CAUSES)
(A.298, AUTHORIZED CAUSES) (299 or 298? Typo?)

“competent public health authority”

2. closure isn’t due to such losses, workers
are entitled to separation pay. - Government doctor whose
[Link] pertains to the disease
3. closure was due to an act of the being suffered by employee
government, workers are not entitled to (hindi pweds private resident? Hindi
separation pay. public health authority nga adel eh)

*A.298 includes both complete cessation *medical certificate requirement cant be

of all business operations and cessation of dispensed with.
only part of a company’s business.
(pertaining to what?) Otherwise it would sanction the unilateral
and arbitrary determination by the
Labor saving Doesn’t require
device proof of employer of the gravity/extemt of
x actual/imminent employee’s illness.
loss
Redundancy Doesn’t require Defeat public policy in the protection of
proof of labor.
actual/imminent
loss *med certs don’t have to be notarized to
Retrenchment requires proof of be admitted in evidence and accorded
X actual/imminent probative weight.
loss
Closure of Doesn’t require Because these documents contain the
business proof of physician’s signature which gives rise to
X actual/imminent the presumption that the medcerrt has
loss
been regularly issued.

*discrimination in any form FROM PRE-

EMPLOYMENT TO POST-
EMPLOYMENT
(hiring, promotion/assignment) based on
the actual, perceived, suspected HIV
status of an individual is prohibited.
 UY, A.

Cause of termination Separation pay

*TERMINATION FROM WORK ON Automation At least 1 month
THE SOLE BASIS OF ACTUAL, redundancy salary or 1 month
PERCEIVED, SUSPECTED HIV IS salary for every year
UNLAWFUL. of service, whichever
is higher
*Only when there’s a PRIOR
CERTIFICATION from a competent Fraction of 6mos is
considered 1 year
public authority that the disease afflicting
the employee sought to be dismissed
Retrenchment At least 1 month
is OF SUCH NATURE AND AT SUCH
salary or ½ monthly
STAGE that it CAN NOT BE CURED
salary for every year
WITHIN 6MOS EVEN W/PROPER of service, whichever
MED TREATMENT that the employee is higher
could be validly terminated.
Fraction of 6mos is
*If employee unreasonably refuses to considered 1 year
submit to medical examination /treatment
upon request to do so, Closure not due to At least 1 month
EMPLOYER MAY TERMINATE HIS serious business losses salary or ½ monthly
SERVICES ON THE GROUND OF salary for every year
INSUBORDINATIIN. WILLFUL of service, whichever
DISOBEDIENCE OF LAWFUL is higher
ORDER.
Fraction of 6mos is
considered 1 year
Procedural steps required (AUTHORIZED
CAUSES)
Closure due to severe No separation pay
1. written notice to employee concerned at least 30 business losses
days prior to the intended date of termination. Disease At least 1 month
*if termination’s brought by failure of employee salary or ½ monthly
salary for every year
to meet the standards of employer in probationary
of service, whichever
employment. is higher
Written notice served within a reasonable time
from the effective date of termination is sufficient. Fraction of 6mos is
considered 1 year
*if termination’s brought by completion of Closure due to an act No separation pay
contract/phase, NO PRIOR NOTICE IS of government
REQUIRED.
*computation of separation pay due to authorized
causes shall only include the years of service.
2. written notice to DOLE at least 30 days prior to
the intended date of termination. *if illegal dismissal, separation pay shall be
computed from start of employment until his
Purpose: ENABLE DOLE to ascertain the actual separation (when reinstatement is no longer
veracity of the cause of termination. possible)

3. payment of separation pay Dismissal for just cause VS. termination for
authorized cause
Rules on Payment of Separation Pay
 UY, A.

Just cause Authorized cause Indicating that upon due consideration of

Nature of cause all circumstances, grounds have been
-dismissed for causes -causes brought by the established to justify his termination
attributable to his necessity and
fault/culpability exigencies of business, o Based on authorized causes
changing economic o (A.298, 299)
conditions and illness
of the employee
- Service of a written notice to the employee
Entitlement to
separation pay - Service to appropriate regional office of
-general rule, not -entitled to separation DOLE
entitled to separation pay - At least 3o days before the effectivity of the
pay termination
Requirement of due - Specifying the ground for termination
process
-must be given ample -employee must be o Based on completion of contract/phase
time to be heard and given a written notice - No prior notice required
to defend himself at least 1 month
before the intended
o Based on probationary employment based
day of termination
on failure to meet employer’s standards
Requirement of notice
to DOLE - Written notice must be served within a
-notice isn’t required -required reasonable time from the effective date of
termination

Requirements for termination Notice required

[Link] due process - Serious business losses don’t excuse

employer from complying w/clearance or
- Employer shall not terminate employee’s report required under A.298
services except for a just cause/authorized - Failure of employer to observe procedural
by law. requirements = bad faith (W/o justifying
- If there’s no showing of a CLEAR, circumstances)
VALID, AND LEGAL CAUSE = illegal
dismissal Ex. If lay-off is temporary but serious business
lossess prevented reinstatement, employer should
[Link] due process have complied the requirements of written notice
o Based on just causes *req of law mandating the giving of notices was
o (A.297) intended not only to enable employees to look for
another employment and ease the impact of the
- First written notice loss of their jobs and income
Specifying the ground for termination
BUT MORE IMPORTANTLY TO GIVE DOLE
Giving employee reasonable opportunitu to
THE OPPORTUNITY TO ASCERTAIN THE
explain his side
VERITY OF THE ALLEGED AUTHORIZED
CAUSE OF TERMINATION. (FOR
- Hearing/conference
EMPLOYEE’S SAKE PADIN AT THE END OF
Opportunity to be heard
THE DAY)
Employee, w/counsel’s assistance if he
desires, responds to the charge, present his
evidence/rebut evidence against him
Common requisites of authorized causes for
- Second written notice termination

(A.298)
 UY, A.

1. good faith - At least 1 month in advance

- w/o serving of notice, employer may hold
[Link] of last resort
the employee liable for damages
3. TWO separate written notice served both on the
2. with just cause
affected employees and DOLE
- no serving needed for any of the just
AT LEAST 1 MONTH PRIOR TO THE
causes
INTENDED DATE OF TERMINATION
1. serious insult by employer
4. separation pay is paid to the affected employees 2. inhuman and unbearable
treatment
If based on: 3. commission of a crim/offense
against the person/his family
o Installation of labor-device
4. causes analogous
o Redundancy
resignation
(1 month pay/ at least 1 month pay for every year of
service, whichever is higher) - voluntary act of employees
- compelled by personal reasons to
(Fraction of at leasr 6mos shall be considered 1
dissociate themselves from employment
year)
must be done with:
o retrenchment
o closure NOT due to serious business 1. intention of relinquishing an office
losses/ financial reverses
[Link] by the act of abandonment
(1 month pay/ at ;east ½ month pay for every yr
of service, whichever is higher) *no resignation when immediately after alleged
resignation, he filed a complaint for illegal
(Fraction..) dismissal.

Voluntary resignation
o closure DUE to serious business losses/
financial reverses - act of employee who finds himself in a
situation which he believes that personal
(NO SEPARATION PAY REQUIRED) reasons can be sacrified in favor of the
exigency of the service
o CBA/company policy provides for a higher
- has no other choice but to disassociate
separation pay. himself

*even if option to resign originated from

(Same must be followed instead of the one provided employer, what’s important for resignation to be
in A.298)
deemed voluntary is that the EMPLOYEE’S
5. fair and reasonable criteria in ascertaining what INTWNT TO RELINQUISH MUST CONCUR
positions are to be affected by the termination. WITH THE OVERT ACT OF
RELINQUISHMENT.

*employee must serve a written notice at least one

month in advance.
TERMINATION BY EMPLOYEE Once accepted, cant be withdrawn w/o employer’s
consent.
(A.300)
*Employee who voluntarily resigns isn’t entitled
1. without just cause
to separation pay UNLESS STIPULATED IN AN
- Serving a written notice on the employer EMPLOYMENT
 UY, A.

CONTRACT/CBA/SANCTIONED BY Temporary lay-off

ESTABLISHED EMPLOYER PRACTICE OR
POLICY. Temporary retrenchment

*voluntary resignation and illegal dismissal are - No specific law provision

ADVERSELY OPPOSED MODES OF - Cant be forever in lay-off
TERMINATINH EMPLOYMENT RELATION *Art.294 can be applied as a remedy
Presence of one precludes that of the other.
- Only by analogy to set a specific period
that employees remain “temporarily laid-
off” or in a floating statys
Intention to resign - While business operations are
temporarily suspend
- when he wrote a memorandum, for file to
- Period of 6 months
the employer using incendiary words and
sarcastic remarks that negate to improve re
relations
- may be accepted and made effective as EMPLOYMENT NOT DEEMED TERMINATED
resignation even if not stated as (Article 301)
“Resignation”
1. Bona fide suspension of the operation of a
ex. One sent a “memorandum for file” expressing business for a period not exceeding 6
his frustrations and disappointments in the office months
2. Fulfillment by the employee of a
military/civic duty
constructive dismissal Floating status
1. act of clear discrimination,insensibility or - Last only for a reasonable time
disdain by an employer becomes so - If lasts for more than 6mos, constructively
unbearable. dismissed then.
No choice but to forego his continued - Entitled to separation benefits such as
employment. [Link]
2. Demotion in rank
Diminution of pay *unfair and unacceptable to immediately declare
3. Floating status of a security guard the mere lapse of the 6month period of folating
status as a case of constructive dismissal w/o
*after 30 day period of suspension, employee must looking into the peculiar circumstances that
be reinstated to his former position because of the resulted in the guard’s failure to assume another
suspension beyond this max period amounts to post.
constructive dismissal.
Summary of requisites for causes of termination

Cause of termination requisites

Test of constructive dismissal Just causes
- Whether a reasonable person in the Serious misconduct
employee’s position would have felt Willful disobedience/
compelled to give up his position under insubordination
the circumstances. Gross & habitual neglect
(tignan din side ng employee, baka of duties
Fraud/willful breach of
undergoing/taking anti-depressants
trust
ganon)
Loss of confidence

-1st class managerial

 UY, A.

employees ARTICLE 294: SECURITY OF TENURE

(those vested w/power to
lay down management *INSERT PROVISION!*
policies)
*not every peformsnce of service for a fee creates
employer-employee relationship.
-2nd class
(Cashiers, auditors,
property custodians)
Effects of illegal dismissal
(those who in the normal
and routine exercise of 1. Payment of backwages
the functions regularly 2. Reinstatement
handle significant 3. Attorney’s fees
amounts of
money/property) Consequences of the violation of worker’s security
Commission of a of tenure
crime/offense 1. Full backwages
Analogous cases
Inclusive of allowances and other benefits/
(Expressly specified in
monetary equivalent
the company rules and
regulations/policies) Computed from time his compensation
was withheld from him up to the time of
his actual reinstatement
Authorized causes 2. Reinstatement
Installation of labor-saving w/o loss of seniority right and other
devices privileges
3. Recovery of moral and exemplary
LIFO damages and attorney’s fees
Except when employee
volunteers to be separated from Reinstatement
employment
Redundancy - Restoration of the employee to the state
from which he has been UNJUSTLY
LIFO REMOVED/SEPARATED
Except when employee - w/o loss of seniority rights and other
volunteers to be separated from privileges
employment
Retrenchment/downsizing forms of reinstatement

1. actual/physical reinstatement
LIFO
Except when employee -admitted back to work
volunteers to be separated from
employment 2. payroll reinstatement
Closure/cessation of operation
-merely reinstated in the payroll

disease
Other cause of termination Reinstatement order Reinstatement order
by the LA by the NLRC
Execution
TITLE ONE: TERMINATION OF Immediately Not immediately
EMPLOYMENT executory executory
When issued
ARTICLE 293: COVERAGE Pending appeal After final and
 UY, A.

executory judgment 2. delay must not be due to the employer’s

Manner of execution unjustified act/omission
Actual/payroll Actual or separation
pay in lieu of
reinstatement Court may order the reinstatement even if the
prayer of the complaint didn’t such relief
Effect of the reversal of LA’s decision to
- If employee was illegally dismissed, court
reinstated employee
can order the reinstatement of an
- reversed on appeal by the NLRC employee
- SC ruled that it’s obligatory on the - Even if reinstatement isn’t prayed for
employer’s part to REINSTATE THE - UNLESS THE EMPLOYEE WAIVED
EMPLOYEE AND PAY HIS WAGES SUCH RIGHT TO REINSTATEMENT
DURING THE PERIOD OF APPEAL (how?)
UNTIL THE DECISION OF LA IS - Technicalities of law and procedure are
REVERSED BY HIGHER/HIGHEST set aside in labor proceedings
COURT
By law: employee who’s unjustly dismisses is
*LA’S decision is immediately executory and NO entitled to reinstatement
WRIT OF EXECUTION is necessary.

*if there’s an order of reinstatement but such

Termination of employer’s duty to reinstate position isn’t available anymore, employee should
be given a SUBSTANTIALLY EQUIVALENT
- Employer’s duty to reinstate such POSITION.
dismissed employee is terminated
- No longer obliged to keep employee in the if no equivalent position, reinstatement shouldn’t be
actual service/ payroll ordered.
- Employee’s not required to return wages It would in effect compel employer to do the
he received prior to reversal of LA’s impossible. (ha why?)
decision
Employee should be merely given separation pay
Rules on recovery of accrued wages consisting of 1 month salary for every year of
General rule: service.

employee may still recover the accrued wages up to

and despite the reversal of the higher court Separation pay in lieu of reinstatement (SPLR)
Exception: - Jurisprudence enunciates (not A.294)
employee ma be barred from collecting such if - Alternative remedy of separation pay
shown that the delay in enforcing the reinstatement - If reinstatement isn’t feasible
pending appeal was w/o fault on the part of the - Recourse based on equity
employer.
INSTANCES when SPLR was awarded

1. employer’s business has closed down

2 tests to determine whether an employee is
2. rein. Cant be effected in view of the long
barred
passage of time/ realities of situation
1. Actual delay/
3. inimical to the employer’s interest
Order of reinstatement pending appeal wasn’t
4. rein. no longer feasible
executed prior to its reversal
 UY, A.

5. will not serve the best interest of parties Cant be held liable to pay separation pay
BEYOND such closure of business
6. company will be prejudiced
Because even if the illegally dismissed employees
7. will not serve a prudent purpose would be reinstated, they couldn’t possibly work
[Link] relations beyond the time of the cessation of its operation.

(employee’s been replaced permanently, no

substantially equivalent position) Salary rate to be used in the computation
[Link] employee’s position is no longer - salary rate prevailing AT THE END OF THE
available PERIOD OF PUTATIVE SERVICE
(not attributable to employer’s fault) -basis for computation
10. injury/disability of the employer -Period of imputed service for which the employee
[Link] already reached retirement age is entitled to backwages
under a retirement plan *Award of separation pay in lieu of
12. death of the illegally dismissed employee rereinstatement ISN’T PROPER if there’s no
finding of illegality of dismissal.
13. sale of the company
Because PRINCIPAL REMEDY OF
14. insolvency of the company REINSTATEMMENT MAY ONLY BE GRANTED
IN CASE THE DISMISSAL IS ILLEGAL.

*employer doesn’t have the option to choose

Components of SPLR (jurisprudence)
between actual reinstatement and separation pay
1. amount equivalent to at least 1 month salary/ 1- in lieu thereof.
month salary for every year of service, whichever
REINSTATEMENT – PRIMACY AS PROPER
is higher.
RELIFIEF WHICH AN ILLEGALLY
Fraction of at least 6mos is considered 1 whole DISMISSED EMPLOYEE IS ENTITLED.
year.
SPIR- ORDERED ONLY IF THERE’S
[Link] that the employee has been receiving SHOWING THAT REINSTATEMENT’S NO
on a regular basis LONHRT POSSIBLE BY REASON OF
JUSTIFICATIONS ALLOWED BY LAW

Period covered
Doctrine of strained relations
1. from 1st day of employment up to the date of
finality of decision - Under the circumstances the relationship
of employer to the employee is SO
[Link] employer has already ceased its operations STRAINED AND RUPTURED as to
after dismissal of employees, computed only up to preclude a harmonious working
the time employer ceased its operations relationship

- If reinstatement of the employee’s to be

Reason: decreed, separation pay should instead be
given.
Computation must be based on the no. of days - Spared the agony of having to work anew
when POLYMER was in actual operation. w/employer
- Atmosphere of antipathy and antagonism
 UY, A.

- Lost confidence of employer to such Reinstatement as a relief to illegally dismissed

employee employee

Requisites of strained relations Final and executory judgment

[Link] concerned occupies a position of trust No options

and confidence given by employer

[Link] of antipathy and antagonism may be

Backwages
generated if he’s reinstated

Adversely affects the efficiency and productivity - Remedy

of the employee - Employee’s afforded to recover what he
has lost when illegally dismissed

*entitlement to backwages flows from law.

*doctrine of strained relations isn’t applied
indiscriminately to bar reinstatement in cases of Even if he doesn’t ask for it, will be given to him.
illegal dismissal *Failure to claim backwages in complaint for
Especially when employee hasn’t indicated an illegal dismissal is a MERE PROCEDURAL lapse
aversion to returning to work/ doesn’t occupy a which can’t defear a right granted under
position of trust and confidence/ has no say in the substantive law.
business’operation

Computation of backwages
4 views of Separation pay - Computed from time of illegal dismissal
1. in lieu of reinstatement in illegal dismissal cases to time of actual reinstatement.
where such is noy feasible - If no longer possible, computed until
finality of the decision
2. employer’s statutory obligation in cases of legal
termination due to authorized causes Rule on backwages

3. financial assistance, act of social justice, evem in - Shouldn’t be diminished/reduced by

case of legal dismissal earnings elsewhere during the period of
illegal dismissal
4. employment benefit granted in CBA/ company
policy Reason: employee while litigating the illegality
of dismissal must still earn a living to support
himself and his family.
Difference between reinstatement order pursuant
to art.229 and art. 294
Inclusions in the computation of backwages
A.229
- Base figure should include both the basic
Reinstatement order by LA salary and the regular allowances such
Reinstatement pending appeal employee had
been receiving
Self-executory - Emergency living allowances, 13th month
pay
2 options (Actual/ payroll reinstatement)

A.294
reinstatement backwages
-Restores the -allows same employee
 UY, A.

employee to his to recover from - Terminated when contract expries

position before illegal employer what he gad - Not entitled to full backwaged and
dismissal lost by way of wages separation pay under LC
as a result of dismissal - Rights and regulations governed by
-Status quo ante POEA and RA 8042
dismissal

*Award of reinstatement isn’t inconsistent w/ OFWs who are terminated without just, valid or
award of backwages authorized cause are entitled to:

1. full reimbursement of placement fee and

deductions made w/ interest at 12% per annum
Separation pay backwages
When paid 2. salaries for the unexpired portion of the
When reinstatement’s Paid for compensation employment contract
no longer possible which the employee
should have earned if
not dismissed illegally
Retirement
computation
Based on employee’s From the time of TITLE TWO: RETIREMENT FROM SERVICE
length of servuce illegal dismissal up to
actual reinstatement/ ARTICLE 302: RETIREMENT
finality of decision
Reason for payment - Applies to all employees in the private
Assistance while Paid for loss of sector
employee’s looking for earnings during the - Regardless of position, designation, status
another employment period between illegal - Irrespective of the method by which their
dismissal and wages are paid, except those specifically
reinstatement exempted
Purpose
Oriented towards the Restoration of the past A.302 DOESN’T APPLY TO:
future income lost [Link] of the national government, its
political subdivisions, GOCCs covered by Civil
Reinstatement without backwages Service Laws

1. dismissal is deemed too harsh a penalty (?) [Link] of retail, service and agricultural
establishments or operations regularly employing
[Link] acted in good faith NOT MORE THAN 10 employees
3. no evidence that the employer dismissed the
employee
Retirement
Reinstatement with limited backwages
- Result of a bilateral act of the parties
- For reason of good faith on the part of - Voluntary agreement between employer
employer and employee
- Employee consents to sever his
employment w/employer when he reaches
Monetary awards to illegally dismissed OFWs a certain age

- Seafarers are considered

CONTRACTUAL EMPLOYEES
Kinds of retirement schemes
- Employment’s governed by contracts they
sign every time they’re rehired 1. compulsory and arbitrary in character
 UY, A.

[Link] up by agreement between employer and - Legal and enforceable as long as the
employees in CBA/ parties agree by such CBA
other agreements between them (other applicable Extension of service of retiree
employment contract)
- Matter of extension of service is
[Link] given by the employer expressly, addressed to the sound discretion of the
announced company policy/impliedly as in failure employer
to contest the employee’s claim for retirement - Employment’s deemed terminated upon
benefits compulsory retirement of an employee in
the public/private service

Retirement age
A.302 APPLIES ONLY TO A SITUATION
- Specified in the CBA/ employment
WHERE:
contract
1. no CBA/ other applicable employment contract
60- less than 65: optional but employee must have
providing for retirement benefits for an employee
served at least 5 years
[Link]’s a CBA or other applicable employment
65: compulsory
contract providing for retirement benefits set by
*Retail and agricultural establishments/ law
operations employing not more than 10 employees
are exempted from the coverage of A.302
Benefits

- Retiree is entitled to a retirement pay

Rule on mining employees
- 1/2 month salary for every year of service
R.A NO. 10757 - Fraction of 6 months considered as 1
whole year
- Underground/ surface mining employee
upon reaching age of 50 years/more but ½ month salary = 22.5 days per year of service
not beyond 60 years
1. 15 days plus 1/12 of the 13th month pay
- declared the compulsory retirement age
for both 2. cash equivalent of not more than 5 days of
service incentive leave
surface mine workers

- mill plant workers

- electrical, mechanical and tailings pond *employees not entitled to 13th month pay and SIL
personnel while still working, shouldn’t be paid the entire 22.5
days but their retirement pay should be computed
underground mining employees
on the sole basis of his salary.
- optional retirement age is 50-60
- provided that they have served at least 5
years Diff of driver paid on a boundary basis vs
conductors paid on a commission basis

compulsory retirement age below 60 allowed Former,

- A.302 permits employer and employee to Latter, retirement pay should include the cash
fee applicable retirement age at below 60 equivalent of the 5-DAY SIL and 1/12 of the 13th
yrs month pay
 UY, A.

When to retire:

*public school teachers shall be given 1 range 1. Upon reaching the retirement age in the CBA/
salary raise upon retirement other employment contract

- basis of the computation of the lump sum of the Law??

retirement pay and monthly benefits

Retirement benefits

- Earned under existing laws and CBA,

Voluntary retirement involuntary other agreements
retirement
-cuts employment ties -discgarfe Provided that:
-no residual employer -employer liable for
1. shall not be less than those prescribed by
liability termination w/o cause
RETIREMENT PAY LAW

2. if benefits are less, employer shall pay the

Focal point of analysis: employee’s intent
difference between the amount due under the RPL
Relevant parameters: and that under CBA/ RETIREMENT PLAN

- Fairness of the process governing the *clear intention and spirit of the law to give
retirement decisions employers and employees a free hand to
- Payment of stipulated benefits determine and agree upon the terms and
- Absence of badges of intimidation/ conditions of retirement
coercion
*if CBA provides that compulsory retirement of
employees after 25 years of service is legal and
enforceable, so long as the parties agree, then such
R.A. NO 7641 is applicable e
AMENDING A.302 OF LC

- January 7, 1993 2. Optional requirement

- in the absence of RP/CBA

Coverage: all employees in the private -upon reaching the age of 60 but not beyond 65
years
- Regardless of position, designation/status
- Irrespective of the method by which their (if 65 na di na pwede mag avail ng benefits?? Or
wages are paid hindi na optiona;, need na talaga mag retire?)
- Except those specifically exempted
-has served for at least 5 years
Exemption
(pano yung jusice/judge na as long as in good
A.302 DOESN’T APPLY TO: service ganon, pano retirement plan)

[Link] of the national government, its

political subdivisions, GOCCs covered by Civil
Retirement benefits
Service Laws
- At least ½ month salary for every year of
[Link] of retail, service and agricultural
establishments or operations regularly employing service
NOT MORE THAN 10 employees - At least 6 months/ 1 year
- 1/2 month salary for every year of service
 UY, A.

- Fraction of 6 months considered as 1 R.A NO. 7641 APPLIES ONLY TO:

whole year
1, no CBA/ other applicable employment contract
providing for retirement benefits

[Link]/ other applicable employment contract is

present but it’s BELOW THE REQUIREMENTS
SET FOR BY LAW
½ month salary

1. 15 days salary based on his latest salary rate *even if the company doesn’t include 13th month
For employees paid by result: pay and SIL as part of the salary base, RA7641
doesn’t apply where the employees receive a lump
basis is their average daily salary sum of 1 ½ month’s pay per year of service.

2. cash equivalent of not more than 5 days of SIL *Company already grants to its retiring employee
more than what the law gives which is ½ month
3. 2.5 days representing 1/12 of the 13th month pay salary for every yr of service.
*22.5 days for every year of service

4. all other benefits employer and employee may

Retirement pay under Retirement pay under
agree upon that’s included in computation of LC GSIS, SSS, PAG-IBIG
retirement pay -sss is diff and distinct

-GSIS applies to
[Link] retirement government
employees ONLY
- upon reaching the age of 65
-coverage of PAG-
IBIG fund is treated
Service requirement as substitute
requirement within
- Minimum length of service the purview of LC
- At least 5 yrs
- Includes authorized absences and
Contributory retirement plan
vacations, regular holidays, mandatory
fulfillment o military/civic duty - Both employer-employee contribut to a
retirement fund
*upon retirement, whether optional/compulsory,
his services may be continued/ extended on a case
to case basis upon agreement of the employer- - Employer’s total contribution shouldn’t
employee be less than the total retirement benefits
to which the employee would have been
entitled had there been no such
retirement fund
Retirement plan vis-à-vis retirement pay law

Retirement plan - If employer’s contribution is less than the

retirement benefits provided under the
- Partakes of the nature of a contract law, employer should pay the deficiency
- Employer and employee as contracting
parties
Non-contributory retirement plan
 UY, A.

- Existing benefit under which the EXCEPTIONS: GOMADORDIFA

employer may retire an employee
1. GOVERNMENT EMPLOYEES
- Regardless of age
2. MANAGERIAL EMPLOYEES
- With 20 yrs of service
3. DOMESTIC HELPERS
4. FIELD PERSONNEL
5. PEOPLE IN THE PERSONAL SERVICE
*employees have a vested and demandable right to OF ANOTHER
a non-contributory retirement plan. 6. MEMBERS OF THE FAM OF THE
EMPLOYER WHO ARE DEPENDENT
*Employer may not unilaterally withdraw ,
ON HIM FOR SUPPOT
eliminate or diminish such benefits.
7. WORKERS PAID BY RESULT

ARTICLE 83

NORMAL HOURS OF WORK (employee)

- Shall not exceed 8 hours a day

Reasons/purpose

1. Safeguard the health and welfare of the

laborer
2. Minimize unemployment by utilizing diff
shifts

WORK DAY CALENDAR DAY

-24 hour period -24 hour period
-from the time an -commencing at 12
employee starts to work midnight and ending at
-regardless whether 11:59 PM
broken/continuous -employee can work for
-may not coincide w/a 2 calendar days
calendar day
CHAPTER I –HOURS OF WORK Ex. His work starts
from 10pm Monday
*mostly eh IRR of Labor Code legal basis? and ends at 6am
Tuesday.
-covers 2 calendar days
BOOK III CONDITIONS OF EMPLOYMENT
Part-time work
TITLE I WORKING CONDITIONS AND REST
PERIODS - Day’s work of less than 8 hours, not
prohibited
- More than 8hrs is prohibited
CHAPTER I “shall not exceed 8hrs”
- Wage and benefits of a part-timer are in
HOURS OF WORK proportion to the no. of hours worked
ARTICLE 82 Does a part-timer get the same 5 days SIL?
COVERAGE
 UY, A.

Is the probation of a part-timer 6months or -nonwage/non monetary benefit

12months?
-vacation pay, use of a company car
Does a part-timer get a holiday pay?

(answered by EXPLANATORY BULLETIN ON

PART TIME EMPLOYMENT, by DOLE) Conditions of valid CWW scheme

1. Expressly and voluntarily supported by

majority of the affected employees
Eight-hour labor law 2. If work is hazardous, a certification is
needed from an accredited safety
- Maximum not minimum organization/ firm’s safety committee that
- No application to outside service force/ field work beyond 8 hours is within the
sales personnel limits/levels of exposure set by DOLE’s
(Not entitled to OT compensation, cant occupational safety and health standards
ascertain hours worked, not controlled) 3. DOLE is duly notified

Effects of CWW scheme

Compressed work week (CWW) SCN
- Alternative arrangement 1. Work beyond 8 hours will not be
- Normal workweek is reduced to less than 6 compensable by overtime premium
days provided the total no. of hours worked per
- Total no. of hrs per week is still 48 hours day shall not exceed 12 hours
- Normal workday is more than 8 hours but
less than 12 hours Exception: there’s a more favorable
- Without corresponding overtime premium practice existing in the firm
- Applies to 40/44 workweek firms
2. Employees under the CWW scheme are
- Resorted to by employers to prevent serious entitled to meal period of not less than
losses due to causes beyond his control 60mins

3. Adoption of CWW shall not result in

When: diminution of existing benefits
- Lump slump (large/huge amt of drop in Reversion to 8-hour workday
demand) in demand for his goods/services
(has job to finish) - Reversion is a LEGITIMATE
- Lack of raw materials (cant produce more, EXERCISE OF MANAGEMENT
no job to do?) PREROGATIVE
- Employer shall give employees prior notice
Lump – huge/chunk of reversion within a reasonable period of
time
Slump – fall suddenly
- From a CWW arrangement
- No diminution of benefits

To be an exception to 8–hour work day

- Workers must agree to temporary change (FWA) Flexible work arrangements

of work schedule
- Don’t suffer any loss of OT pay, fringe DEPARTMENT ADVISORY NO. 2-09
benefits or weekly/monthly take home pay - Better alternative than outright
Fringe benefits termination/closure of business
 UY, A.

- Effectivity and implementation of such employees can log time wherever they
FWA shall be temporary are and whenever they are doing work.
- Dole regional office should be notified
through a prescribed report form Here’s what a workweek might look like
for an employee at a core hours
BFF-RRC company. Anna attends a yoga class
1. Broken-time schedule where the work every morning before going into the
sched is NOT CONTINUOUS but the no. office at 10 a.m. on Monday and
of work hours within the day/week is not Wednesday. She leaves the office at 2
reduced p.m. to work from home the rest of the
(Staggered working time)
day. As agreed, her colleagues are also
2. Forced leave where the employees are
in the office during these hours. Anna’s
REQUIRED TO GO ON LEAVE FOR colleagues have the same flexible
SEVERAL DAYS OF WEEKS, utilizing schedule and can complete the rest of
their leave credits their work remotely during noncore
hours, too.
3. Flexi-holiday schedule where the
employees agree to avail themselves of the
holidays at some other days, no diminution Twelve-hour work shift with overtime
of existing
- Validated by consent
4. Reduction of workdays where the normal
workdays per week are reduced but *4-hour overtime pay becomes a contractual
shouldn’t last for more than 6 months commitment

(not a benefit granted by law anymore?)

5. Rotation of workers where employees are
alternatively provided work within the *Boycott of 4-hour overtime is an illegal strike
workweek
(parang skeletal?)
Broken hours
6. Compressed workweek
(CWW’s part of FWA) - Normal 8hrs mandated by law doesn’t
always mean continuous and
uninterrupted
Flexible work schedule - Can be 4 hrs in the morning and 4 in the
evening, total of 8
Flexitime (type of FWA)
(peculiar circumstances of employment)
- Right granted to solo parent employee
- Vary his/her arrival and departure time
w/o affecting the core work hours defined Staggered working time
by employer
MEMORANDUM CIRCULAR NO.81
(What’s core work hours? Time needed to really
be at the place of work?kunware sa restau, every DEC. 14, 2004
12pm kase dun madami customers. )
From dec15 to jan6
Core hours are set times when everyone - To improve the delivery of goods and
must be onsite in the office. The rest of services
the work hours are flexible, so - Valid scheme
 UY, A.

another type of flexible working. ((pano if janitor? Cleaning agency? Paano if

yung cashier sa hospital?))
It refers to an arrangement where
individuals have different start and finish
times than other employees. In other Health personnel in government service
words, employees will begin and end their
(EXCLUDED FROM THE COVERAGE OF 82
shifts at the same location, working a given
amount of hours but these will be at TO 96)
different times throughout the day. Magna Carta of Public Health workers

Staggered hours are not to be confused RA 7305

with flexitime, whereby an employee is
assigned core working hours during which March 26, 1992
they must work, such as 10 a.m. to 4 p.m.,
but is given some flexibility, often a 2-hour
window when they can start or finish *customary practice of requiring resident
work, such as 7 a.m. to 10 a.m. and 4 p.m. physicians to work for 24hrs/day
to 7 p.m.
- VIOLATES the limitations prescribed by
(Seems like 9hour but 8hrs lang, included art.83
meal time sa count nila) - Not permissible even if the resident is
paid additional compensation

(Right nila under the law na magkaroon ng rest. To

safeguard their health nga diba)
Health personnel

specially trained, licensed, or credentialed *But the 40-hour workweek isn’t applicable if
health workers other than Physicians, there’s a TRAINING AGREEMENT
podiatrists and Nurses

(shall include but not limited to) (40 hr kase if health personnel, 5 days lang)
(check din if may control. Like consultants, minsan - Such being duly accredited by appropriate
hindi naman na sila employee) government agency.
(check if health personnel bas a government hosp or (no employer-employee relation)
private)

- Resident physicians
- Nurses Ex. MANILA MEDICAL SOCIETY isn’t embraced
- Nutritionists in the definition and not limited to a 40-hour
- Dieticians workweek
- Pharmacists Doesn’t perform any diagnosis, treatment, and care
- Social workers of patients.
- Laboratory technicians
- Paramedical technicians Practice of the center in allowing employees to work
- Psychologists half-day during Saturdays and additional
compensation of work beyond 4 hours should be
- Midwives
retained.
- Attendants
- All other hospital/clinic personnel
(medical secretary)
RA 5901
 UY, A.

Act prescribing 40 hours a week of labor for X: in case of exigencies, work for 6 days/48 hrs but
government and private hospitals or clinic shall be entitled to ADDITIONAL
personnel COMPENSATION OF AT LEAST 30% OF
THEIR [Link] for work performed on the
ALREADY REPEALED 6th day
- With passage of LC on May 1,1974

Case:

petitioners want full weekly salary with Paid 2 days’ *law doesn’t say that health personnel are entitled to
off if they have completed the 40-hour/ 5 day a full weekly wage for 7 days if they completed 40-
workweek hour/5-day workweek in any given workweek.
want 7 days pay for 5 days’ work

12-hour workshift with overtime

a.83 Interphil case
1. regular office hour of 8hrs a day, 5 days/week for - 12-hour workshift is validated by consent
health personnel - 4-hour OT work w/overtime pay becomes
2. exigencies of service require that health a CONTRACTUAL COMMITMENT
personnel work for 6 DAY/48hrs - Boycott of established 4-hour OT is declared
as an illegal strike
– entitled to additional compensation (30% of
regular wage for work on the 6th day) - Workshift MAY EXCEED 8HRS
w/corresponding OT pay
- Through a contract freely entered into
*nothing in the law that says that the hospital - Valid and binding
personnel are entitled to weekly wage for 7 days if
they have completed the 5-day workweek

*[Link] labor exceeded his authority when he ARTICLE 84

included 2day-off paid in the policy instruction n.54 HOURS WORKED
- in contravention of the statute, void 1. All the time during which an employee is
required to be on duty/ at a prescribed
workplace
Normal hours of work of health personnel
2. All time during which an employee is
In cities and municipalities w/population of at least
suffered/permitted to work
1, 000,000

In hospital and clinics w/a bed capacity of 100 3. Rest periods of short duration during
working hours , shall not be more than
(kunware Navotas since around 200k lang 20mins
population, pwede ba na less than 5 days or 8
hrs?)
GENERAL PRINCIPLES TO DETERMINE
COMPENSABLE/NON COMPENSABLE
GR: regular office hours shall be 8 hours for 5 HOURS
days a week/ 40 hours a week, exclusive of time for
meals (IRR,LC)
 UY, A.

SEC.4 Considered as hours worked if:

a. Waiting’s an integral part of his work
(like medrep? field personnel ba sila? If
oo kase edi hindi pwede. Or bus driver
Principles in determining hours worked
if nagwewait na makasakay
1. All hours are hours worked which the passengers? Or private hosp doctor/
employee is required to give to his resident? )
employer, b. Employee’s required/engaged by the
employer to wait
regardless of whether or not such hours c. Employee’s required to remain on call
are spent in productive labor or involve in the employer’s premises/ close
physical/mental exertion. thereto that he cant use the time
effectively and gainfully for his own
2. Employee doesn’t have to leave the purpose
premises of the workplace in order that
*if employee’s not required to remain on the
his rest period shall be counted. Enough
employer’s premises but merely required to leave
that he may stop working, rest completely
word at his home/with company officials , where
and may leave his workplace.
he may be reached, NOT CONSIDERED
WORKING WHILE ON CALL.
3. If the work performed was
necessary/benefited employer, or (unlike teleconsult? WFH?)
employee cant abandon his work at the
end of his normal working hours because - Whether waiting time constitutes
he had no replacement, working time depends upon the
circumstances of each case
ALL TIME SPENT FOR SUCH WORK
- Question of fact (RTC, LA, LC)
SHALL BE CONSIDERED AS HOURS
WORKED if the work is with the *facts may show that employee was engaged to wait
knowledge of his employer/immediate or that waited to be engaged
supervisor.

4. Time during which an employee is inactive

Controling factor:
by reason of interruptions in his work
beyond his control Whether waiting time spent in idleness (inactive) is
spent predominantly for the employer’s
SHALL BE CONSIDEDERED TIME benefit/for the employee’s.
WORKED IF IMMINENCE OF
RESUMPTION OF WORK REQUIRES
THE EMPLOYEE’S PRESENCE AT Instances where OT provisions are applicable
THE PLACE OF WORK/
* large part of the time of the employees engaged in
IF THE INTERVAL IS TOO BRIEF TO “stand-by capacity” in the employer’s auxiliary fire-
BE UTILIZED EFFECTIVELY AND fighting service was spent in idleness (playing cards,
GAINFULLY IN THE EMPLOYEE’S amusement)
OWN INTEREST.
(di hours worked if pwede naman umalis *truck driver who has to wait near /at the jobsite for
and umuwi?) goods to be loaded is working during the loading
period.

While waiting for the return trip, he’s required to take

Rules in hours worked care of his employer’s property. He is also working
while waiting.
1. Waiting time
 UY, A.

- Waiting is an integral part of the job na nagwawait for flight,

- He’s engaged to wait then pag no flight eh
pinapauwi? Eh idle
time ba to? Cant use her
time effectively? )
Not working while waiting

*truck driver is sent from MNL to Dagupna I think compensable

yung sa FA kasi
Leaving at 6am and arriving at 12 noon required to remain on
call in the employer’s
Completelt and specifically relived from all duty until premises atsaka for the
6pm when he goes on duty again for the return trip business’ benefit ung
job nya if ever. Di din
- Idle time IS NOT WORKING TIME naman sya completely
- Waiting to be engaged relieved from duty kase
nasa lounge siya ng
PAL/CEBPAC
USUALLY.
*waiting time is working time if waiting is
considered as an INTEGRAL PART of his work/ if
engaged by an employer to wait.

*if the 4 hours spent by an employee waiting for the

2. working while eating
start of his work due to the unique scheduling of the
school system, it may be considered an integral part meal time: NOT COMPENSABLE
of his work.
- free time/ employee’s own time
- compensable waiting time - Even though he remains in the workplace
Compensability of waiting time - Employee must be completely relived
from duty to eat regular meals
Engaged/required to Waiting to be
wait engaged/ not required COMPENSABLE
to wait
- he’s not relieved if required to perform his
-Waiting’s an integral -idle time isn’t working
part of the job time duties whether active/inactive, while eating.
- If not his free time, then compensable
-Time spent waiting is -not compensable Ex. An office employee who’s required to eat at
compensable
his desk
Ex. Driver waiting for Ex. Bus driver of
palay to be unloaded. victory whose route is Factory worker who’s required to be at his
Played sa phone and manila to Santiago machine
slept. leaving at 6am and
arriving at 3pm. (presence of control here)
Time spent doing such Relieved from duty
is compensable because until 9pm then goes on *when deducted 15mins from meal period, it’s
he’s engaged to wait for duty again. considered as OT work, not rest period.
the unloading to finish.
Idle time not
compensable because 3. Sleeping time
he’s relived from all
- Whether sleeping is allowed as part of
duty temporarily.
Merely waiting to be working time depends upon the
engaged. express/implied agreement of the parties.

(Applicable ba to sa FA
 UY, A.

- Absent an agreement, depends upon the - Employee’s required to be in their place of

nature of the service and relation to the work before/after regular working hours
working time. - Within the call of hiss employer

Not counted as hours worked

a. considered working time if sleeping time is
- Work isn’t continuous and employee can
-subject to serious interruption leave his work, rest completely
-takes place under conditions substantially less
desirable then would be likely to exist at
employee’s home Ex. Employee who drives trucks for the company is
required by the manager to be at the place of work
(like yung pag sleep ba ng guard habang before/after business hours
nakaupo?)
He does nothing but couldn’t leave because at any
time he may be called to drive the trucks
b. not considered working time - considered working time
-there’s an opportunity for comparatively (ah parang yung FA?)
uninterrupted sleep under fairly desirable
conditions

Even though the employee is required to *employee who is required to remain on call on the
remain on/near the work premises and must work premises or close thereto
hold himself in readiness for a call to action He cant use his time effectively for his own purposes
employment
-working while on call
Ex. Firemen are permitted to sleep a portion of the
time they’re on duty at the fire station

- Sleeping time constitutes hours worked *employee isn’t required to remain on work premises
but merely required to leave words at his home/with
(like yung driver ng truck na pwede tumigil and company officials where he may be reached
mag sleep?)
-not working while on call
*sleeping time is compensable working time if the
nature of employee’s work allows sleeping without
interrupting or prejudicing the performance of his
work. For public health workers

(like yung cabin crew na nakakapag rest) - “on call” pay equivalent to 50% of his
regular wage
(Pero iconsider padin dito if manager ba siya ng - Not considered as hours worked when put
cabin crew or supervisor ng security guards kasi if on an “on call” status but entitled to
ganon edi hindi siya entitled ng 82 to 96?) additional compensation
- Called upon to respond to urgent/immediate
need for health/medical assistance/relief
4. “On call” work during emeregencies
- Cant devote the time for his own use
(not literally tatawagan but idirect na mag work
or to do something)

Counted as hours worked 5. With cellular phone/other contact device

 UY, A.

If the employee’s kept “Within reach” is it Whether employee is bound to travel in a

work beyond his regular work hours? conveyance furnished by the employer

No Whether free to choose his conveyance

US COURT RULING WON subject to control and supervision during

the travel
- 5 marshals weren’t considered to be in
work status during the time they’re in an WON the travel takes place under vexing and
“on-call” status dangerous conditions
- Where they were allowed to leave
telephone numbers/to carry electronic Travel from home Travel that is Travel away
device for purpose of being contacted to work all in a day’s from home
- Although they must remain within a work
certain geographical area -not work time -time spent in -keeps an
-normal travel from travel as part of employee away
home to work his principal from home
-normal incident of activity overnight
work
Ex. Travel from -considered as
6. Preliminary activities Home-to-work travel jobsite to jobsite work time
(before work, like preparation for during the work when it cuts
business presentation ) Not compensable even day across an
and if he works at a fixed -compensable employee’s
postliminary activities location/different workday
(after actual work, like OT work) jobsites -counted as hours because it
worked substitutes for
Compensable when *but when employee the hours that
a. Controlled/required by employer receives an *An employee the employee
b. Pursued necessarily and primarily for emergency call finishes his work should have
the employer’s benefit outside of his regular on the premises at been in the
working hours and 5pm, sent to office
*the 30min assembly time practice by the required to travel to another job which
employees of the company can’t be considered his regular place of he finishes at *time is hours
waiting time since they’re not subject to the business then all of 8pm, required to worked NOT
ABSOLUTE CONTROL OF THE COMPANY the time spent in return on his ONLY ON
during this period. traveling is working employer’s REGULAR
time. premises arriving WORKING
Otherwise, failure to report in the assembly time at 9pm. DAYS
would justify the company to impose disciplinary GR: not compensable -ALL THE TIME DURING
measures. -not a normal incident IS WORKING NORMAL
of employment TIME WORKING
(grace period ba to?) HOURS BUT
Exeception: But if he goes ALSO
-if worker’s made to home after 8pm DURING THE
work on an job, it’s CORRES
7. Travel time PONDING
emergency call and considered as
“working while riding” HOURS ON
travel’s necessary in home-to-work
- time spent walking, riding, traveling to/from tavel and not NON
proceeding to the
the place of work workplace hours worked. WORKING
- May/may not constitute working time DAYS
- May be under the OT provisions -travel’s done through
- Depends upon the KIND OF TRAVEL a conveyance *If he works
involved provided by the regularly from
employer 9am to5pm
Factors: from mon to
 UY, A.

fri, travel time If any of the following conditions are

-travel’s done under during such present
supervision the time is -employees can leave their workplace/go
employer worktime elsewhere whether inside/outside of the
during sat. Sun work premises
-travel’s done under and other days
vexing and dangerous -employees can use the time effectively for
circumstance their own interest

(So compensable?) 9. Semestral break of teachers

*regular meal period isn’t counted -nature of work interruptions beyond
*department will not consider as worktime those employees’ control
times spent in travel away from home OUTSIDE of
regular working hours as a passenger on an - entitled to salary and emergency COLA
airplane, train, boat, bus, automobile during sembreak

*any work performed while traveling is hours worked -Cant be considered as absences within the
meaning of law for which deductions may
*employee who drives and an assistant are both
be made from monthly allowances
working while riding

Except during bona fide meal periods/ permitted to -no work, no pay doesn’t apply
sleep in adequate facilties furnished by the employer
(FA) Case: petitioner’s members received their
regular salaries during this period.

Clear from the law that it contemplates a no

Ex. One who does installation job outside MNL
work situation where the employees
His travel time is counted as hours worked when it voluntarily absent themselves.
cuts across with his regular work hours
Petitioners do not ad voluntatem absent
-regular salary should be paid for said time themselves during semestral breaks. They
are constrained to take mandatory leave
(pano pag no, like nag travel siya midnight to reach
from work.
the place by his working time? Not compensable?)

*time spent by delivery driver in returning the vehicle 10. Lectures, meetings, training programs
to the bodega is deemed time worked
Not counted as working time if ALL the
conditions are met:
8. Power interruptions
DOLE POLICY INSTRUCTION NO. 36 OVN
a. Attendance is outside of the
a. brownout of short duration but not employee’s regular working hours
exceeding 20mins shall be treated as
hours worked/compensable hours b. Attendance is in fact voluntary
whether used productively by the
employees/not. c. Employees doesn’t perform any
productive work during such
b. brownouts running for more than attendance
20mins may not be treated as hours
worked. 11. Attendance in labor relations activities

CBA NEGOTIATIONS
 UY, A.

- Generally not compensable BUT HE SHOULD RECCEIVE OT PAY ONLY

- Except if there’s an agreement for FOR THE ACTUAL SERVICE IN EXCESS OF
compensability in the parties’ ground rules 8HRS

GRIEVANCE MEETING
- Generally compensable Hours worked: evidence and doubt
- if employees are required by employer to be
on the premises Employer has the burden of proof
- Except when a bona fide union is involved - When employer alleges that his employee
and there’s a CBA, policy or practice to the works less than the normal hours of
contrary employment provided by law, HE BEARS
THE BURDEN OF PROVING IT WITH
HEARING, ARBITRATION CLEAR AND SATISFACTORY
CONCILIATION EVIDENCE
- Time spent for attendance by union -
officers/employees in hearings/conferences - Daily time records are not considered
before labor tribunals/courts in cases filed substantial evidence (DTRs)
by them against the employer
- Not compensable working time Case:
- Hardly fair/just for a employee/laborer to
Uniformity and regularity of time in the DTRs
fight/litigate against his employer on the
are badges of untruthfulness
employer’s time
Telecommuting
(So di compensable para maging fair din sa
employer?) Work from home/ distributed work arrangement
12. Work hours of seamen
- Presence on board for more than 8hrs/day is
required by the nature of their service Workplace

- Place designated by the employer outside of

- Actual rendition of work and proof of
employee’s home
such is needed to be entitled to overtime
- Work and working arrangements change
pay
over time
Correct criterion:
RA NO 11165
in determining WON sailors are entitled to OT
- Allows telecommuting arrangement in
isn’t whether they’re on board and cant leave the
private enterprises
ship beyond the regular 8 working hrs a day BUT
- Allows an employee to work from an
WHETHER THEY ACTUALLY RENDERED
SERVICE IN EXCESS OF SAID NUMBER OF alternative workplace w/the use of
HOURS. telecommunication/ computer technologies
- Shall not impair the entitlement to labor
(how would u know? Supervised? Cctv? Time standards
running the machine or what?) - Initiated, changed, terminated w/o prejudice
to the employment relationship
*mere fact that a crew member of a vessel was
- Decentralized organizational structure
required to be on board all day so that he could
immediately be called to duty when needed IRR OF RA 11165
DIDN’T IMPLY THAT HE SHOULD BE PAID
IT FIR 16HRS A DAY -requires employer to notify DOLE of the adoption of
a telecommuting arrangement
 UY, A.

*not a scheme to deny/divest a worker of his c. In cases of actual/impending

employment status/benefits emergencies or there’s urgent work to
be performed on machineries,
*life saving alternative agreement not as a loose equipment or installations to avoid
option (during this time) serious loss which employer would
suffer
d. Work is necessary to prevent serious
loss of perishable goods

3. Rest periods/coffee breaks running from 5 to

20 mins shall be considered as
COMPENSABLE WORKING TIME
ARTICLE 85
(so if 40mins lang, with pay ung 20mins?)
MEAL PERIODS
Shortened meal break upon employees’ request
- Requires the employer to give employees
60mins time-off - Employees may request for their meal
- Even if inside the premises, lunch period period to be shortened
isn’t considered as working time - So that they can leave work earlier than
- For their regular meals previously established schedule
- Not compensable except when lunch period - Shortened mealtime isn’t compensable
is spent for the employer’s benefit (less than
60mins) Ex. Established work hours are from 8am to
5pm with 12noon to 1pm meal period
Rules on meal periods
So the employee can leave work at 4:30 pm, he
1. Shouldn’t be less than 60 minutes
Non compensable may request and the management may agree to
shorten his meal time to 30mins.
except when during the so-called meal
period, laborers are required to standby for 12 to 12:30pm
emergency work,
30min mealtime IS NOT COMPENSABLE
or said meal hour isn’t one of complete
rest- considered overtime (hours worked) 12:31 to 4:30 PM he works

Beyond 4:30 PM- considered OT

2. May be less than 60mins
(what if no lunch?) (bawal? Mandatory talaga meron?
but shouldnt be less than 20mins
)
the shortened mealtime must be with full
pay under the following instances

similar to situations of emergency OT work Requisites/conditions set by DOLE

(paanong full pay sa computation? If 100 hourly NBC DOTA
wage edi 100 padin?)
1. Work isn’t physically strenuous and they’re
a. Work is non-manual work in nature/ provided with adequate coffee breaks in the
doesn’t involve strenuous physical morning and afternoon
exertion 2. Value of benefits is equal to the
b. Establishment regularly operates not compensation due them
less than 16hrs a day
 UY, A.

3. No diminution in the salary and other fringe Should credit employees 16 hours when they work in
benefits of the employees already existing 2 shifts, instead of 14 hours.
4. OT pay will become due and demandable if
ever they’re permitted or made to work
beyond 4:30 PM Meal time of less than 60 mins
5. Proposed working time arrangement is of
temporary duration (why?) - Since considered as time-off, non
6. Employees voluntarily agree in writing and compensable
waive the OT PAY - IRR allows the meal time to be LESS
THAN 60 MINUTES , CAN NOT BE
*8-hour period doesn’t include the meal break. SHORTER THAN 2O MINUTES
Nowhere in the law may it be inferred that employees - Such shortened meal time should be with
must take their meals within the company premises full pay
(so if 30mins lang siya naka eat, may
Employees arent prohibited from going out of the 20mins na with pay?)
premises as long as they return to their posts on time.
*shortened meal time shorter than 20mins is NOT
ALLOWED
When meal time is time worked - It becomes a “Rest period” which is
compensable
Continuous shifts
- Considered working time (under IRR)
- Work is continuous for several shifts, meal
time breaks should be counted as working
time (for purposes of overtime Change lunch break from paid to unpaid
compensation)
- Change in work sched doesn’t constitute
Case: unfair labor practice
4 work shifts of 8hrs each with 1-hour meal time per - Right to fix the work sched of the employees
shift. rests primarily on the employer
- Exercise of management prerogative
They were credited with 8hrs shift and paid for that
no of hours
Case: Lunch break could be considered as working
Since 1953, when workers were required to continue time because the factory employees were required to
working until the next shift, they were only paid 6hrs work if necessary and paid accordingly for working
instead of 8.
With the new work sched, employees are now given
Employer claimed that 2hrs correspond to meal time a one-hour lunch break w/o any interruption from
period and shouldn’t be included in computing their employer.
compensation.
Since employees are no longer required to work
during this one-hour lunch break, no more need for
them to be compensated for this period.
Ruling: idle time an employee spend for resting isn’t
counted as working time ONLY WHERE THE Reason for the adjustment: efficient conduct of
WORK IS NOT CONTINUOUS/BROKEN. business operations and improved production
Work here was uninterrupted. Employees cant rest
completely nor leave the work premises.

Meal time breaks then should be counted as working

time for purposes of OT compensation. ARTICLE 86

NIGHT SHIFT DIFFERENTIAL

 UY, A.

- Additional compensation of not less than

10% of an employee’s regular wage
NSD NOT WAIVABLE
- For every hour of work done between 10
PM and 6 AM - Founded on public policy (A.6, NCC)
- WON such period is part of the worker’s - Additional compensation for nighttime work
regular shift - CAN BE WAIVED if for higher and
(may additional 10% padin) bigger benefits.
*lack of sunlight produces anemia and tuberculosis Art. 6. Rights may be waived, unless the waiver
and predispose to other ills
is contrary to law, public
*night work brings increased liability to eyestrain and order, public policy, morals, or good customs, or
accident prejudicial to a third person
with a right recognized by law.
*serious moral dangers brought by traveling alone at
night

economic POV: unprofitable but cant be abolished Burden of proof of NSD payment
- valuable aid in enforcing max period of - Burden of proof rests with the employer
employment

-uneconomical UNLESS overhead costs are

unusually heavy -----solve ---------

GR: ALL EMPLOYEES ARE ENTITLED TO NSD VS OT PAY

NSD.
NSD OVERTIME PAY
EXCEPTIONS: As to nature
Payment for work done Payment for the excess
1. Those provided in art.82 of the LC during the night of the regular 8-hour
2. Employees of retail and service work
establishments regularly employing not 10pm to 6am
more than 5 members. As to premium
(hindi 10?) 10% of basic wage 25% or 30% of basic
wage
*COLA shall not be included in the computation of
night shift pay. (why?)
*receipt of OT pay will not preclude payment of
NSD in overtime work NDS pay.
- If work done between 10pm and 6am is Ex. Tour of duty of a laborer falls at night time
overtime work, the 10% NSD should be (10pm to 6am)
based on the OT RATE.

ARTICLE 87
Reason:
OVERTIME WORK
NSD PAY is given as premium for working at a
time when the employee is supposed to sleep Eight-hour labor law
and rest in accordance with the law of nature.
CA NO.444 now A.87
(so compute the OT rate first then base the NSD
Overtime pay
from that)
 UY, A.

- Additional compensation for work 1. OT work on regular work day

performed beyond 8hours within the - Regular wage + at least 25% thereof
worker’s 24-hour workday
- regardless whether the work covers 2 2. OT work on special holiday/rest day
calendar days - Not falling on a regular holiday
- multipiying the OT hourly rate by the no. of - Rate of the first 8hours on that day + at least
hours worked in excess of 8hrs 30% thereof

reason: (tam aba 200% muna for holipay then compute ot

from that)
given OT pay because he is made to work longer
than what’s commensurate w/his agreed
compensation for the statutorily fixed/voluntarily
agreed hours of labor he’s supposed to do. Conditions to be entitled to overtime pay

Worker spends additional time to his work. Multi- 1. Entitlement to OT pay must first be
faceted effect: more effort, physical/mental , delayed established by sufficient proof
in going home, no time to relax, miss important pre- 2. OT work was actually performed
arranged engagements

Adverse effects justify the extra compensation/ OT

PAY
Factual and legal basis for claim

GR: express instruction from the employer isn’t

OT PAY VS PREMIUM PAY required. Sufficient that employee’s
Overtime pay Premium pay permitted/suffered to work.
Additional On NON-WORKING - Neither is an express approval by a
compensation for work DAYS: rest days,
performed beyond regular and special superior – a prerequisite to make OT
8hours holidays work compensable

Employee entitled to Additional Case: if the work performed was

premium pay is compensation required necessary/benefited the company/ employee cant
likewise entitled to OT by law for work abandon his work at the end of 8hour period,
pay performed within compensable OT work even if w/o approval of the
8hours [Link]

Basis for computation of OT pay

Exception: on rest days and holidays, written
- Compensation added to regular wage authority after office hours is required for
entitlement to compensation.
Regular basic wage/ regular basic pay
*verbal instruction to render OT work prevails over
- includes cash wage only w/o any deduction a memorandum prohibiting such work.
on account of facilities provided by the
employer Respondent had been rendering OT service w//
- excludes money received in diff concepts full knowledge of petitioner
(Christmas bonus)
(employer can easily avoid payment)
*COLA shall not be included in the computation of
OT pay
*court ruled that CLAIM FOR OVERTIME PAY
Rates
ISNT JUSTIFIED IN THE ABSENCE OF A
 UY, A.

WRITTEN AUTHORITY TO RENDER OT - Court cant oblige any of the parties to

AFTER OFFICE HOURS DURING SUNDAYS do/give more than what’s legally obliged
AND HOLIDAYS
Same ln gung 130% and 30%
*neither is OT claim justified FOR DAYS
WHERE NO WORK WAS REQUIRED AND NO Conversion of MONTHLY TO DAILY RATE
WORK COULD BE DONE on account of
shutdown due to electrical power interruptions, Actual work days as divisor
machine repair, lack of raw materials PALEA VS. PAL INC.

Case:
*claim for OT PAY will not be granted for want of Union would like to modify PAL’s way of wage
factual and legal basis computation to no. of actual working days as the
divisor and not 365 days

- Premium higher than what he’d receive on

Substantial evidence (rendition of work, by the
claimant) : burden of proof (by employer who regular working day
avers payment) (mas favorable sa employees)
- Use of bigger divisor may show non
- One who pleads payment has the burden of compliance to the minimum wage when
proving it (employer) reduced into its daily equivalent
- Even if the plaintiff alleges non-payment,
Paid unworked days of a monthly-paid employee
still employer has the burden to prove
payment rather than plaintiff to prove non- - Divisor lower than 365 doesn’t mean that
payment employee isn’t monthly paid

*Employer may stipulate that employee’s

Premium pay as basis of overtime pay monthly salary includes payment for all the days
of the month including rest days and holidays
Premium pay where the employee’s monthly salary, when
concerted by the increased divisor into its daily
- Basis of OT pay for work rendered on rest equivalent- would still meet minimum wage.
days, special days, reg holidays
- Higher than the regular - legally permissible, unworked days are
- Holiday/ rest day premium should FIRST included and paid
BE ADDED TO THE REGULAR PAY
*monthly-paid employee can’t claim payment
before computing the OT pay
for unworked half-day of Saturday and whole
day of Sunday when shown that HIS MONTHLY
- Regular wage + additional compensation
SALARY, computed by the formula
of 30% and 100%
- FUSION OF REGULAR WITH THE Daily rate = (monthly wage x 12 divided by 365)
ADDITIONAL COMPENSATION
Yields a daily rate meeting/exceeding the legal
CBA may stipulate higher OT rate minimum wage

- higher OT PAY may be stipulated by the

parties in their CBA
*if employer uses 304 as divisor doesn’t
- basis of OT pay beyond that required by CA
necessarily prove that monthly salary doesn’t
NO 444 = CBA
include pay for 61 days
Unless there’s an agreement MORE FAVORABLE
*304 is favorable to the emloyees, yields higher
TO THE WORKER, the OT rate is 30% of the first 8
rate than 365 divisor.
hours on a holiday/work day.
 UY, A.

*applies to whether a monthly salary already - Alternative agreement whereby normal

includes pay for 14 legal holidays workweek is reduced
To less than 6 days but the no. of hours is till
(SO paid na?)
48 hours/workweek
- Can be 40-hour or 44-hour workweek

“built in” overtime pay conditions

Overtime pay integrated in the Basic salary effects

- Stipulation between employer and employee validity of waiver of OT pay in CWW program
that latter’s regular/basic salary already
- Sc held as valid the waiver of the right to
includes the OT pay
OT pay
- NOT illegal
- Shown that person waived it voluntarily
- Not unusual for executives/managers who
with full understanding and credible and
aren’t entitled to benefits
reasonable consideration
Called: Composite pay
Flexible working arrangement (FWA)
Package pay
- Another coping mechanism & remedial
All-inclusive salary measure (like CWW)
During economic difficulties and national
emergencies
Requisites for validity

1. Clear written agreement knowingly and How “work day” is counted

freely entered into by employee (express)
2. Mathematical result shows that agreed Day/daily
legal wage rate and the OT pay,
- 24-hour period
COMPUTED SEPARATELY, ARE
- Commences from the time the employee
EQUAL TO OR HIGHER THAN THE
regularly starts to work
SEPARATE AMOUNTS LEGALLY DUE.
Calendar day
*if the period of normal working hours per day
was increase to 12 hours, employer remains liable - Starts at 12 midnight to 12 midnight
for whatever deficiency in the amount of OT work - Monday, tues, wed
in excess of the first 8 hours after re-computation
shows such deficiency. *Unless employee starts working at 12 midnight
wherein it coincides w/ start of the calendar day
(this happens sa CWW scheme?) (then it’s the same?)

“built in” overtime pay in government-approved Ex. employee works from 8am to 4pm, work day is
contract from 8am to 8am the following day
Compressed workweek Period from 8am to 4pm
Dole advisory no. 02-04 REGULAR WORKING HOUTS/SHIFT
- Another instance of waiver of OT pay
- No. of work days is reduced but the no. of
work hours in a day is increased to more Period from 8am to 8am
than 8
WORK DAY
- No OT pay may be claimed
 UY, A.

*any work in excess of the 8hrs within the 24hr - Overtime pay in arrears retroacts to the
period is OT work regardless if it covers 2 calendar date when services were actually rendered
days

*any work in excess of 8 hrs not falling within the

- Employee cant expressly renounce the
24hr period IS NOT CONSIDERED OT work
right to OT pay under the 8hr labor Law
(Clear this out) and may be compelled to to accomplish
the same thing by mere silence/lapse of
time.
Broken hours of work
But there are causes in which the silence
- Minimum working hours need not be of the employee who lets the time go by for
continuous a long period W/O CLAIMING HIS
- Legal working day as long as eight hours is RIGHT TO OT COMPENSATION MAY
within a work day FAVOR THE INFERENCE THAT HE
- Employee can work 4 hrs in the morning MAY NOT HAVE WORKED ANY
and another 4 in the evening to complete 8- OVERTIME/ HE’S ALREADY
hour working period COPENSATED.

Reasons:
4 hours in the evening isn’t OT work
1. Contrary to the spirit of the 8—hour labor
Work in different shifts in a work day law – laborers cant wave their right to
- Work in excess of 8hrs is considered as extra compensation
2. Law principally obligates employer to
OT even if performed in another work
observe it – punishes employer for its
shift
violations and leaves employee free and
Ex. Convenience store blameless

Worker takes shift of an absent employee 3. Employee/laborer is in a disadvantageous

position in asserting a claim which may
His regular tour of duty is from 10pm to 6am the
cause the employer to devise a way for
following day
exercising his right in terminating his
Asked to work from 2pm to 10pm for the shift of employment
the absent employee

His Second shift in the establishment

Work performed during his 2nd shift is

Waiver of OT pay
OVERTIME WORK- rendered after completing
his regular duty GR: OT pay cant be waived expressly/impliedly.
Since the 2nd shift is STILL WITHIN HIS Any contrary stipulation is null and void, as it’s
WORK DAY FROM 10PM TO 10PM intended to benefit laborers and employees.
=10pm pa dapat next work niya Exceptions:

1. Waiver is made in consideration of

benefits and privileges which may be
Action to recover compensation
more than what will accrue to them in OT
- Principles of estoppel and laches can’t be pay
invoked against employees/laborers in 2. Compressed work week
action for recovery of compensation
 UY, A.

Quitclaim in relation to OT pay - Once a civil action is filed in court- the

cause of action may not be the subj of
GR: quitclaim whereby laborers agree to forego
compromise
the benefits due from their employer is null and
- This will render the judicial system
void in its entirety
irrelevant to the prejudice of the national
Runs counter to art.22 of the civil code: interest
- Parties cant trifle w/the judicial system by
Against unjust enrichment and contrary to public coming into court and later agreeing to a
policy compromise w/o knowledge and approval
OF THE COURT

Exception:
Case:
Petitioner’s educational background and
employment stature render it improbable that he Employees signed contracts fixing annual
was pressured/ intimidated/ inveigled into signing compensation w/express waiver of compensation
the quitclaim. for work on Sundays and holidays
Court cant permit to relive himself from the Waiver isn’t binding and doesn’t bar claims for
consequences of his act when his knowledge and extra compensation
understanding thereof is expected.
Quitclaim: VALID when in exchange for
- Even if the employee signs a quitclaim that certain benefits
he’s renouncing all kinds of claim, it can not
deprive him of his right to collect OT and - Justifiable exception to the rule that OT
legal holiday wages. compensation cant be waived
(null and void so no effect) - Waiver may be permitted when benefits and
privileges in exchange is more than what
will accrue to them in OT pat
*employees whose positions are reclassified from
rank-and-file to supervisory lose overtime pay and
other benefits under 82-96. Chinese overtime against public policy

*Promotion produces the same effects - System of overtime payment

- Employee’s regular rate is calculated by
But promotion and position reclassification must be dividing his salary by the total no. of
done in good faith. hours he works/
*personnel movement shouldn’t be intended to - Greater no. of hours, lower rate of pay per
circumvent the law to deprive employees of the hour
benefits they used to receive. - Unduly reducing the take home pay of the
employee.
- Economic practice prohibited by law
Quitclaim: why invalid

Contrary to law (article 22, NCC)

ARTICLE 88
- No one shall be unjustly enriched at the UNDERTIME NOT OFFSET BY OVERTIME
expense of another
- Offsetting of undertime work by overtime
Contrary to public policy
work whether on the same/any day is
prohibited by law
 UY, A.

- Permission given to the employee to go on GR: employees cant be compelled to render OT

leave on some other day of the week work against their well.
SHALL NOT EXEMPT THE EMPLOYER
FROM PAYING THE ADDITIONAL
COMPENSATION OVERTIME WORK BELOW IS AN
OBLIGATION

Exceptions:

1. in times of war/ national/local emergency

Reason:
declared by the congress/chief executive
Undertime hours represent ONLY the employee’s 2. necessary to avail of favorable
hourly rate of pay while the OT hours reflect both weather/environmental conditions where
the hourly rate of pay and the appropriate overtime performance/quality of work is dependent
premium such that, thereon
3. work is necessary to preserve perishable
NOT BEING OF EQUAL VALUE, offsetting the goods
undertime hours agains thte overtime hours would 4. Urgent work needed on machines and
result in undue deprivation of the employee’s equipment
overtime premium. 5. To prevent loss/damage to life/property
due to emergencies and force majeure
(Act of God)
Proper method: 6. Prevent serious obstruction/prejudice to
the business/operations of the employer
Deduct the undertime from the accrued leave, if any,
BUT PAY THE EMPLOYEE THE OVERTIME *if any of the circumstances enumerated in the
PAY to which he is entitled. law exists and the worker refuses to perform
emergency OT work, employer may validly
- Obviates the irregular schedule that would terminate him on the ground of
result if OT should be set off against UT insubordination/willful disobedience
- for that would place the sched for working
hours dependent on the employee In conection w/his work under art.288 of the LC

*more unacceptable when undertime hours are

not only offset against the OT hours but are OVERTIME WORK BELOW IS OPTIONAL
charged against the accrued leave of the
employee *if in any event not stated above, employee cant be
made to work beyond 8hrs against his will
Proper method:
Deduct the undertime hours from the accrued
ARTICLE 90
leave but pay the employee the OT
compensation he’s ebtutked COMPUTATION OF ADDITIONAL
COMPENSATION
When he exhausted his leave credits
(so dapat cash wage + faciltiies?)
Undertime hours may be deducted for his day’s
wage but still paid OT pay in excess of 8hrs Regular wage

- Cash wage only w/o deduction on facilities

provided by the employer
ARTICLE 89 - Purposes of computing OT and other
EMERGENCY OVERTIME WORK additional remunerations
 UY, A.

*this provision shall be clarified/modified. *employer determines and schedules

Regular wage includes cash wage + value of Subject to:

facilities. 1. CBA
2. Rules and regulations issued by the
secretary of labor
Regular wage is bigger than cash wage. 3. Employee’s preference BASED ON
RELIGIOUS GROUNDS
Ot rate should be based on regular wage.
- Employer shall respect this
(cash wage + facilities)
- When such preference will prejudice the
Not the cash wage only. business operations and NO OTHER
REMEDIAL MEASURES ARE
(kunware ung plan ng phone sa globr, sa employees AVAILABLE,
ng smc) weekly rest period may be scheduled to
meet the employee’s
choice for at least 2 days a month

CHAPTER II
ARTICLE 92
WEEKLY REST PERIOD
WHEN EMPLOYER MAY REQUIRE WORK
ARTICLE 91 ON REST DAY

RIGHT TO A WEEKLY REST DAY GR: employer may not require employees to work
on a rest day
- not less than 24 CONSECUTIVE hours
after every 6 CONSECUTIVE NORMAL Exceptions:
WORK DAYS
1. Urgent work to be performed on the
consecutive- following one another machinery, equipment, or installation
2. To prevent loss/damage to perishable goods
in order without gaps It rained for
3. In case of actual/impending emergencies
three consecutive days. caused by force majeure to prevent loss of
life and property, or imminent danger to
*all establishments and enterprises may public safety
operate/open for business on Sundays and 4. Necessary to avail of favorable
holidays weather/environmental conditions where
performance/quality of work depends
- provided that employees should be given thereon
the weekly rest day and benefits under the 5. Nature of the work requires continuous
law operations and stoppage of work may
result in irreparable injury/loss to the
(what if asked if “hindi consecutive days yung
employer
work, paano yung day-off?”)
6. Event of abnormal pressure of work due to
Can not be unless under FWA. No work naman na special circumstances and the employer
Monday papasok then Tuesday hindi. Kasi if that, cant ordinarily be expected to resort to
parang nag day off na siya ng Tuesday. other measures
7. Other circumstances analogous to the
foregoing as determined by Sec. of Labor
Who determines weekly rest days? Case:
 UY, A.

failure to work during an employee’s rest day When compelled to work during holidays, he’s
deprived of the opportunity to satisfy such
doesn’t justify the disciplinary sanction of needs
outright dismissal from employment (such is a
severe consequence) Law seeks to compensate this deprivation

more so when justifiable grounds exist for the 2 kinds of holiday

said failure
1. Special no-work holiday
*if the employee volunteers to work on his rest day 3/year
under other circumstances, he may be allowed as - No work. No pay.
long as he expressly desire in writing and he’s paid
additional compensation for working on his rest day. If worked: gets his daily basic rate + 30%

(Di pwedeng di bayaran) If special day fall on his rest day: additional
compensation of 50%/ 150%

*president/ LGU/ congress may declare a certain

ARTICLE 93 day as “special”
COMPENSATION FOR REST DAY, SUNDAY, May/may not mean suspension of work/classes
OR HOLIDAY WORK
No work, no pray principle applies
- Made/permitted to work on such days
*w/o prejudice to any voluntary practice/
- Employee shall be entitled to
provision in the CBA providing for payment of
ADDITIONAL COMPENSATION ON
wages and other benefits for special days even if
SUNDAY ONLY WHEN IT IS HIS
unworked
ESTBALISHED REST DAY
Special (Working) days
Following additional compensation shall be
applied - Entitled only to his daily wage
- No premium pay
day Premium pay
Scheduled rest day 30% of regular wage - Considered work on an ordinary workday
No regular workday, no 30% of regular wage Ex. FEB 25- edsa revolution day
specific rest day performed on Sundays
& holidays
Work on Sundays when 30% of regular wage
it’s his rest day 2. Regular holiday
Special holiday 30% of regular wage 12/year
Special holiday falling 50% of regular wage - Gets 100% of his daily rate even if he
on scheduled rest day doesn’t work
Regular holiday falling 260% of regular wage - Whether daily-paid or monthly-paid
on scheduled rest day (60%??) - If worked, gets 200%

Premium pay rate synonymous to “Additional”

Holiday
Additional compensation (not OT pay)
- Day set apart for worship, reverence, rejoice,
rekindle Differential pay= premium pay
- Consecrated day, religious festival
(pay added to the regular pay for work within 8
- Ordinary occupations are suspended
hours on a nonworking day)
- A day of exception-cessation from work
- Day of festivity, recreation, amusement But
- Opportunity to satisfy their mental, moral
and spiritual needs
 UY, A.

Premium pay gains the “higher” meaning than - One day pay given by law to an employee
“regular” pay if the worker pays beyond 8hrs on a - Even if he doesn’t work
rest day/ nonworking day - Limited to each of the 12 regular holiday
Only 12 occasions when HP should be paid
OT pay on such day will be computed on the basis
No more, no less
of the combined regular wage and 30% additional
- Payment of the regular daily wage for any
unworked regular holiday
- doesn’t apply to employees of retail and
Another meaning of “premium pay” service establishment regularly employing
Regular rate combined with additional 30% less than 10 workers

Differentiate 2 meanings *every employee covered by Holiday pay rule is

entitled to
- Additional to the regular wage (a.93)
Premium pay refers to the Minimum wage rate
30% to be added to the RW
(Daily basic wage and COLA)
For work done within 8 hrs on a rest
day/special holiday Means: at least100% if his minimum wage rate
50% if on a special holi-rest day
As long as present/ leave on absence with pay on the
- Combined regular wage and additional day immediately preceding the holiday
pay (a.87) (NSD yung di applicable to less than 5 workers?
OT WORK Then diff ung holiday pay? Paano yung 7/11 na
Rate of the first 8 hrs on a holiday/ rest per branch ilan lang naman sila, considered ba
day plus at leat 30% thereof ung number sa each branch or sa whole
company? )
Regular wage combined with the 30%
additional pay Work performed on a legal holiday

Twice (200%) the daily wage rate of the employee

Premium pay is 130% which to base the
hourly OT pay for work exceeding 8 ----solve-----
hours.

(so if php1,270, ditto basis ng 30% of OT?

Holiday falls on the scheduled rest day
Unlike sa a.87 na OT palang? Or sa 93 eto?)
Additional 30% of employee’s regular holiday
----solve-----
rate of 200%

Total of 260%

(kase 130% na to begin with it being rest day?)

CHAPTER III
HINDI BA DAPAT 230% LANG THEN FOR
HOLIDAYS, SERVICE INCENTIVE LEAVES, WITH OT UNG 260%?
AND SERVICE CHARGES

ARTICLE 94

RIGHT TO HOLIDAY PAY

HOLIDAY PAY LAW

Holiday pay
reason of holiday pay:
 UY, A.

to prevent diminution of the monthly income *national commission on Muslim Filipinos

of the workers on account of work (NCMF) shall inform the office of the president on
interruptions which day the holiday shall fall

although the worker is force to rest, he earns

what he should earn
Muslim holidays

PD NO 1083 as amended
list of regular holidays
BOOK V, TITLE I
EO 292 , amended by RA 9492
1. AMUN JADID
new year’s day JANUARY 1 NEW YEAR
Maundy Thursday MOVABLE DATE -1ST day of the lunar month of Muharam
Good friday MOVABLE DATE
Araw ng kagitingan Monday NEAREST
APRIL 9
2. MAULID UN-NABI
Labor day Monday NEAREST
BIRTHDAY OF PROPHET MUHAMMAD
MAY 1
- 12th day of the 3rd lunar month of RABI-UL
Independence day Monday NEAREST
JUNE 12 AWWAL
National heroes day LAST MONDAY OF
AUGUST 3. LAILATUL ISRA WAL MIRAJ
Bonifacio day Monday NEAREST NOCTURNAL JOURNEY & ASCENSION
NOVEMBER 30 OF PROPHET MUHAMMAD
Christmas day December 25 - 27th day of the 7th lunar month of Rajab
Rizal day Monday NEAREST
DECEMBER 30 4. ‘ID-UL-FITR
Eid’l Fitr MOVABLE DATE HARI RAYA PAUSA
Eid’l Adha MOVABLE DATE - 1st day of the 10th lunar month of
SHAWWAL, commemorating the end of
fasting season
(originally 10 lang then na add ung 2 muslim
holidays?)

*regular national election day is a holiday. 5. ‘ID-UL-ADHA

HARI RAJA HAJI
Entitled to holiday pay
- 10th day of the 12th lunar month of DHU-AL
(So May 9 this year 2022. Watch out for it sa exam, HIJJA
baka ilagay tas maisip mo na ordinary day lang
naman, entitled to HP) **1-3 ARE OBSERVED ONLY IN MINDANAO

- Basilan
- Lanao Del Norte
*proclamations declaring national holidays for eid’l - Lanao Del Sur
fitr and eid’l adha shall be issued after approximate - Maguindanao
dates of Islamic holidays have been determined in - North Cotabato
accordance w/Islamic calendar (HIJRA)/ lunar - Sultan Kudarat
calenday/ upon Islamic astronomical calculations - Sulu
whichever is possible/convenient
- Tawi-tawi
- Zamboanga Del Norte
- Zamboanga Del Sur
- Cotabato city
- Iligan
 UY, A.

- Marawi -if present/ on leave of absence w/pau on working

- Pagadian day immediately preceding the Muslim holiday
- Zamboanga
*those permitted/suffered to work on such
- Other Muslim provinces and cities as may
be created - entitled to at least 200% of their basic pay
*upon president’s proclamation, Muslim holidays
may also be officially observed in other provinces
and cities. *NOT ONLY Muslim but also Christian employees
in the DESIGNATED PROVINCES AND CITIES
*date of Muslim holidays ae determined by the are entitled to holiday pay on the Muslim holiday.
OFFICE OF THE PRESIDENT in accordance w/
Muslim Lunar Calendar (Hijra)
*wages and other emoluments granted by law to the
working man are determined ON THE BASIS OF
4-5 ARE NATIONAL HOLIDAYS THE CRITERIA LAID DOWN BY LAWS AND
NOT ON THE WORKER’S FAITH/RELIGION.
*must be no distinction between Muslims and non-
Muslims w/regard to payment of benefits for Muslim
holidays, wages, other emoluments
Relation to agreements
Such are laid down by law and not based on
faith/religion - Nothing in the law justifies an employer
withdrawing/reducing any benefits,
supplements, payments for unworked
regular holidays
Presidential proclamation no. 1198

October 26, 1973

Formulas to compute wages on holidays
*All private corporations, offices, agencies and
entities/establishments ----solve----
OPERATING WITHIN THE DESIGNATED
MUSLIM PROVINCES AND CITIES are
ECOLA on Regular Holiday
required to observe Muslim holidays both Muslims
and Christians Is ECOLA part of the holiday pay?

Working within the Muslim area Entitled to minimum wage rate?

- May not report for work on the days Daily basic wage + COLA
designated by law as Muslim holidays
- Paid their regular rate
Holiday pay: entitlement of monthly-paid
*muslim employees working OUTSIDE THE employees
MUSLIM PROVINCES AND CITIES
Divisor
Shall be excused from reporting for work during the
observance of the Muslim holidays Divisor should be explained

- Without diminution of salary - Bigger the divisor, smaller the daily

equivalent
*workers who don’t report for work on said days

- entitled to 100% of their basic pay

Start of entitlement of monthly-paid employees
 UY, A.

Amount of holiday pay of a part-timer is

determined on a case-to-case basis
Holiday falling on a Sunday
(whichever yields the highest amount)
Old rule: holiday falls on a Sunday the following
Monday becomes a holiday 1. Regular wage per day
2. Basic wage on the working day preceding
- No longer true the [Link] if the employee is present/on
Letter of Instruction No. 1087 leave with pay on the last working day
immediately prior to the [Link]
Following Monday shall not be a holiday 3. Average of his basic wages for the last 7
days for employees paid by result
Wellington case: 4. Basic wage on the particular holiday- if
- Legal holiday falling on a Sunday creates worked
no legal obligation for the employer to pay Holiday pay: piece-rate workers
extra
Exemption of retail and service establishments

Double holiday: two regular holidays on the same

day

Double holiday rule for monthly-paid employees Rule on compensability

- Employee’s entitled to at least 100% of his

MINIMUM WAGE RATE
Successive regular holidays - even if he didn’t report for work, he is
- Employee may not be paid for both present or on leave of absence w/pay on the
holidays IF HE ABSENT HIMSELF work immediately preceding the holiday
FROM WORK ON THE DAY
IMMEDIATELY PRECEDING THE 1ST
HOLIDAY case:
- UNLESS HE WORKS ON THE 1ST
HOLI. HE’S ENTITLED TO HIS HOLI legal holiday falling on a Sunday doesn’t create an
PAY ON THE 2ND HOLI additional workday nor create a legal obligation for
the employer to pay extra aside from usual holiday
pay to its monthly-paid employees

Hourly-paid teachers: no pay on regular holiday, case:

but with pay on special public holidays and other
no-class days work performed on that day merits at least twoce /
200% the daily wage of employee
(WHY?)
(what day?)
Holiday pay: field personnel not covered

Holiday pay of a part timer

Holiday pay of monthly paid employees
- IF THE WORK IS PARTIAL, THE PAY
Is a monthly paid employee entitled to 12-day
SHOULD BE PARTIAL.
holiday pay? ((yes))
- If he works only a part of the normal 8-
hour shift, he shouldn’t expect a full day’s - Only if their salary didn’t include yet the
pay on a holiday. holiday pay

Monthly paid employee

 UY, A.

- Whose salary covers all days of a month 1. Not entitled to payment of HP because paid
including unworked rest days, special days, only for work actually done
regular holidays
Regular holidays are known to both school and
faculty members as “no class days”
- Divisor is important in determining WON
holiday pay is already included in the Case: JOSE RIZAL COLLEGE VS NLRC
monthly paid employee’s salary
Faculty don’t expect payment for unworked
days, clear into their minds when they entered
Daily-paid employee into the teaching contract
- Paid only for days actually worked 2. But entitled to their regular hourly rate on
- Except that by law he’s paid for the 12 days declared as special holidays/ classes are
regular holidays called off/shortened on account of typhoons,
floods, rallies because he doesn’t earn what
he’s supposed to
Case:

Use of 314 as a divisor leads to inevitable

Coverage of holiday pay law
conclusion that 10 legal holidays are already
included Applies to all employees

EXCEPT:
Additional compensation for work on a rest day, 1. Government employees
Sunday, holiday 2. Retail and service establishments
regularly employing LESS THAN 10
GR: company w/ a 6-day working sched, divisor
WORKERS
314 in a year includes LEGAL HOLIDAYS in the
3. Househelpers and persons in the personal
monthly pay
service of another
PRODUCERS BANK OF THE PH VS NLRC 4. Managerial employees

If they meet all the conditions:

Divisor: subtracted all Sundays from the total no. of -primary duty is to manage the establishment/
calendar days in a year (Which is 365? Or 12? ) department or subdivision thereof

*check ITL notes -customarily and regularly direct the work of

2/more employees

-authority to hire/fire other employees of lower

GR: company w/ a 5-day working sched, divisor rank
261 means that HP is already included in the
monthly salary Their suggestions and recommendations as to
hiring, firing, and promotion/ any change of status
WELLINGTON INVESTMENT AND of other employees are given particular weight
MANUFACTURING CORP. VS TRAJANO
5. Officers/members of the managerial staff

If they perform the following duties &

Rule on holiday pay of teaching personnel paid responsibilities:
per lecture hour
-primarily perform work directly related to
For faculty members paid by hour management policies
By virtue of their teaching contracts
 UY, A.

-customarily and regularly exercise discretion and from ships) SHALL BE ENTITLED TO HP
independent judgment BENEFIT

-regularly and directly assist a

proprietor/managerial employee in the
management of the establishment Formula to compute wages on holidays

-executed, under general supervision, work along LABOR ADVISORY NO. 10

specialized/technical lines requiring special HOLIDAY PAY
training, experience, knowledge
Regular holidays
-execute, under general supervision, special
assignments and tasks During employee’s regular workday
-do not devote more than 20% of their hours
worked in a workweek to activities which ARE Unworked (Daily rate + COLA) x
100%
NOT directly and closely related to the
performance of work described above
worked 1ST 8 hours
6. field personnel/ other employees whose time and (Daily rate + COLA) x
performance is unsupervised by the employer 200%

Including those who are engaged on task/contract Excess of 8hours

basis , purely commission basis/ paid a fixed
amount for performing work irrespective of the time (hourly rate of the basic
consumed in the performance thereof daily wage x 200% x
130% x no. of hours
worked)
During employee’s rest day
Holiday pay of certain employees

1. Covered employee is paid on piece-rate Unworked (Daily rate + COLA) x

basis 100%

His holiday pay SHALL NOT BE LESS worked 1ST 8 hours

THAN HIS AVERAGE DAILY [ (Daily rate + COLA)
x 200% ]
EARNINGS FOR THE LAST 7 ACTUAL
WORK DAYS PRECEDING REGULAR
+ [ 30% (daily rate x
HOLIDAY
200%) ]
Provided that in no case shall the HP be HP PLUS 30% OF HP
less than the applicable statutory minimum
wage rate Excess of 8hours

(hourly rate of the basic

2. Seasonal workers daily wage x 200%
x 130%
May not be paid the required HP during off x 130%
season when they’re not at work x no. of hours worked)
Declared special days
Special non-working day
Special public holiday
3. Workers who don’t have regular working Special national holiday
days (ex. Stevedores- load/unload cargo Nationwide special days
 UY, A.

Unworked No pay E0 292. AMENDED BY RA 9849

unless there’s favorable national

company All saint’s day November 1
policy/practice/ CBA Last day of the year December 31
granting payment of Ninoy Aquino Day Monday NEAREST
wages on special days (RA 9256) AUGUST 21
Other days declared by
Even if unworked law
local
worked 1ST 8 hours Those declared by Gawagawayan Festival
(Daily rate x 130%) + law/ordinance
COLA
*presidential proclamation declares DECEMBER 24
as SPECIAL NON-WORKING DAY (so 4th na?)
Excess of 8hours
*holidays except those whicha re religious in nature
(hourly rate of the basic are moved to the nearest Monday, unless otherwise
daily wage x 130% x modified by law/order/ proclamation
130% x no. of hours
worked)
Falling on the 1ST 8 hours Regular holiday Special holiday
employee’s rest day & (Daily rate x 150%) + Compensable even if No work, no pay
if worked COLA unworked

Excess of 8hours Subj to certain

conditions
(hourly rate of the basic Limited to the 12 Not exclusive
daily wage x 150% x enumerated by LC and
130% x no. of hours special laws A law/ ordinance may
worked) provide for other
Special working holidays special holidays
worked Entitled to basic rate 200% rate of the 130% rate of the
only regular rate if worked regular wage if worked

No premium pay since

considered work on Double holiday pay
ordinary working day
Ex. Araw ng kagitingan and good Friday falls on the
same day
*art.94 doesn’t prohibit stipulation in the CBA for
higher benefits. 200% of the basic wage

*Reducing compensation of employees for the - Entitled even if said holiday is unworked
unworked Sundays, holidays, other rest days cant be
- If only 100% is given, it would reduce the
justified
no. of holidays
Considered paid- off days or holidays by
agreement/practice subsisting upon the effectivity of 300% of the basic wage
the code
- Worked on 2 regular holidays falling on the
same day
List of special (non-working) days
 UY, A.

(Reg holi, bc if special holi- no work no Absent Special d Reg holi yes
pay) w/pay
Absent Special d Reg holi NO
390% of the basic wage
W/O pay
- Reported for work on a double holiday
which is also his work day
Effects of business closure on holiday pay

If regular holiday occurs during…

Single holiday rule
1. Temporary/ periodic shutdown
Provided that the employee: Temporary cessation of work
Regular holidays falling within the period
1. Worked
shall be compensated
2. On leave w/pay
3. Authorized absence on the day prior to the
regular holiday
2. Cessation of operation of an enterprise due
*employees on LOA w/o pay on the day to business reverses
immediately preceding a REG HOLI may not be paid As authorized by sec of labor
the required HP if they don’t work on such REG Regular holiday MAY NOT BE PAID by the
HOLI employer

*day immediately preceding the holiday is a non- Successive regular holidays

work day in the establishment/ schedu;ed rest day of
To be entitled to holiday pay in case of 2 successive
the employee. HE SHALL NOT BE DEEMED TO BE
holidays, the employee must:
ON LOA, he’s ENTITLED TO HOLIDAY PAY IF HE
WORKED ON THE DAY IMMEDIATELY 1. Be present on the day immeditaly preceding
PRECEDING THE NON-WORK DAY OR REST the 1st holiday
DAY. 2. Be on leave w/pay

WED THURS FRI ENTITLE *otherwise he must work on the 1st holiday to be
D TO entitled to HOLI pay on the 2nd regular HOLI
HOLI
PAY?
present Rest d Reg holi yes Successive holiday rule
Absent Rest d Reg holi yes
wed Maundy Good fri Entitled to
w/pay
thurs holi pay?
Absent Rest d Reg holi NO
present NOT W. NOT W. YES-
W/O pay
BOTH
present Special d Reg holi yes
Absent NOT W. NOT W. YES-
 UY, A.

w/pay BOTH Provisions of art.95 of the LC

Absent NOT W. NOT W. NO- Speak of the no. of months in a year for entitlement
W/O PAY BOTH to said benefit.

Absent Worked! NOT W. YES- but Part-time employees are also entitled to full 5 days
W/O PAY only to the SIL benefit and not on a pro-rate basis

HOLIPA
Y ON FRI

SIL of part-time workers

Bureau of working conditions

ARTICLE 95 - Part-time workers are entitled to the full

benefit of the yearly 5 days SIL w/pay
RIGHT TO SERVICE INCENTIVE LEAVE - A.95 speaks of the no. of months in a year
Service incentive leave (SIL) for entitlement to such benefit
- Not on a pro-rata basis
- 5-day leave with pay
- For every employee who has rendered at DOLE’s explanatory bulletion on part-time
least 1 year of service employment
- mandatory - Allows proportionate entitlement and
1 year of service commutation of the SIL
- Whether the service within 12 months is
- Service for not less than 12 months continuous/broken
- Whether continuous/broken (kunware 9 - Whether the working days in the
months 2021, 3 months 2022) employment contract is less than 12 mos
- Reckoned from the date the employee (practice/policy)
started working including authorized - Availment and commutation can be
absences and paid reg holidays proportionate to the daily work rendered and
- Unless the no. of working days in the regular daily salary, respectively
establishment AS A MATTER OF
PRACTICE/POLICY, provided in the
employment contract, IS LESS THAN 12 SIL ON CONTRACT WORKERS
MONTHS
Teachers on private school on contract basis
Purpose:
- Entitled to SIL
To serve as a motivation for the employee to stay - Phrase “those who are engaged on a
longer w/employer task/contract basis” refers to field personnel
(Sabi managerial employee’s not entitled to SIL, but Ejusdem generis (general and unlimited terms are
this isn’t practice by businesses. They have benefits restrained and limited by the particular terms they
padin. Not just from the law but from stipulation) follow)

Applicabole ejusdem here or hindi?

*PART TIME WORKERS ARE ENTITLED TO
SIL.
SIL ON PIECE-RATE WORKERS

- In Makati haberdashery case, they’re not

Reason:
entitled to SIL
 UY, A.

- But in the later labor congress case, they are. Unless they fall under the classification of field
personnel
EXCLUDDED EMPLOYER: BURDEN OF
PROOF “other employees whose performance is
unsupervised by the employer”
- When an employer claims that it falls within
the exception, it’s his duty to prover that
there are LESS THAN 10 EMPLOYEES IN
Conversion to monetary equivalent
THE COMPANY.
- If it fails, deemed to be covered by the rule Commutation
- Notwithstanding the employees’ failure to
allege the exact no. of employees of the - Conversion to cash of unused SIL
corporation - Code has no provision on commutation ,
- IRR has and requires it
“the SIL shall be commutable to its money
equivalent if not used/exhausted at the end
of the year.”
TBCCCCC
Questionable commutation rule
TBCCCCC
- Did DOLE exceed its rule making authority?
TBCCCCC - Is the requirement of converting unused SIL
into cash valid?
TBCCCCC
- It’s not in the law, is it valid?
TBCCCCC

TBCCCCC
If SIL need not be given to employees already
enjoying VL with pay of at least 5 days, what if the
company is granting 15 days VL, is the company
obliged to pay the cash equivalent of at least 5
days VL unused at the end of the year?

If 5 days of the 15 days VL is SIL, does it follow that

it must be converted to cash if unused?
SIL DOESN’T apply to the following
If not, does the employer violate the law on SIL?
1. Government employees
Pag inask ni atty, although wala answer. Pwede
2. Managerial employees
iinvoke article 4 of the labor code. Rule in favor of
(take note of the guidelines on determining
the employee. Proper na commutable ung 5 days SIL
who’s a managerial employee, put on a
of the 15 days VL since for benefit nung employee
sticky note)
3. Field personnel, unsupervised work
4. Those already enjoying vacation leave
w/pay for at least 5 days GR: SIL is commutable/convertible to cash if not
5. Already enjoying said benefits used at the end of the year
6. Employed in establishments regularly
Cash equivalent is aimed primarily at encouraging
employing less than 10 employees
workers to work continuously and w/dedication to
7. Persons in the personal service of another
the company
*employes engaged on task/contract basis/ paid
purely on commission basis

NOT AUTOMATICALLY EXEMPTED FROM SIL of kasamabahay not commutable

THE GRANT OF SIL Exception:
 UY, A.

Kasambahay law to limit the award to 3 years is to unduly restrict

such right
UNUSED LEAVES SHALL NOT BE
CONVERTIBLE TO CASH

Domestic worker who has rendered at least 1 year Cause of action accrues when??
shall be entitled to an annual SIL with pray.
*cause of action of employee to claim SIL pay
Any portion unused of the SIL shall NOT BE accrues from the moment the employer refuses
CUMULATIVE to the succeeding years. to remunerate its monetary equivalent.

(employee didn’t choose to make use of it and

availed of its commutation)
*basis of conversion shall be the salary rate AT
THE DATE OF COMMUTATION *employee wishes to accumulate his leave
credits and opts for its commutation upon his
*availment and commutation of the SIL benefit may resignation
be on a pro-rata basis
His cause of action to claim the whole amount
If something is given out to people on a pro rata of his accumulated SIL shall arise when the
basis, it means assigning an amount to one person employer fails to pay such at the time he
according to their share of the whole resigns.

Basis of computation of SIL Piece-rate workers

Basis of conversion: salary at the date of 1. Working inside the premises of the
commutation employer
- May be on a pro-rata basis Under the direct supervision
Entitled to SIL
-------solve------------ 2. Working outside the premises
Hours spent working cant be ascertained w/
reasonable certainty
Case: Not under the direct supervision
Not entitled to SIL
employee who is illegally dismisses is entitled to SIL
computed 1 year from the date she started working *piece-rate employees aren’t entitled to SIL
until the date of her actual reistatement. *SIL shall not apply to employees whose
performance is unsupervised

Rule on prescription of claim for SIL Including those who are paid in a fixed amount for
performing work irrespective of the time consumed
Art.306 LC in the performance thereof
- Prescription of filing an action upon
monetary claims from the time the cause of
action accrued Employees with salaries above minimum wage
- Not a prescription of period of time for Minimum wage vs actual salary received
the computation of money claims
- Employee may use his SIL benefits as leave - Difference cant be deemed as their 13th
days/ he may collect its monetary valued month pay and SIL as such difference isn’t
equivalent to the said benefits contemplated
Case: by law
 UY, A.

(HA ANO DAW - Aimed primarily at encouraging workers to

ASDFGHKL???????????????????????????) work continuously and w/dedication for the
company
- Lure employees to stay w/the company
SICK LEAVE AND VACATION LEAVE:
Paternity leave
VOLUNTARY BENEFITS
RA NO 8187
Vacation and sick leave
- Grants paternity leave of 7 days w/full pay
- VL & SL are statutorily required
to all married male employees
- Voluntary
- Private and public sectors
- Non-contributory (employees have no
- Available only for the 1st four deliveries of
monetary contribution to the creation of
the LEGITIMATE SPOUSE W/WHOM
the benefits)
HUSBAND IS LIVING WITH
- Intended to alleviate the economic
condition of the workers Purpose: to enable the husband to lend support to
his wife during the period of recovery and in
*Like other economic benefits stipulated in
nursing the newborn
CBA- are intended as replacements for
income which an employee will not earn while Delivery includes
on leave.
- Childbirth
- Miscarriage
- Abortion (pero illegal to?)

Matter of management prerogative

maternity leave
- Grant results from employer’s discretionary
policy/ from bargaining social security law
- Employer may impose certain conditions
for other voluntary benefits article 121,LC
- Entitlement to such (Esp by a corporate
executive) must be proved.
parental leave (Solo parent leave)
Product of CBA
solo parents’ welfare act of 2000
- Employer has leeway to impose conditions
on the entitlement of VL AND SL RA 8972
- Not a standard of law but a management
- 7 day parental leave shall be non-
prerogative
cumulative
- Act of grace
- Not a matter of right
- Within the power and authority of employer
to deny employee’s application for leave Legally mandated leaves
- Same cant be perceived as - SIL
discriminatory/harassment - SSS SICK LEAVE
Commutation of sick leave and vacation leave - SSS MATERNITY LEAVE
- PATERNITY LEAVE
- Voluntary and not statutory - PARENTAL LEAVE
Rationale for accumulation and conversion OTHER PAID LEAVES

- BATTERED WOMAN LEAVE

 UY, A.

- 60 DAY SPECIAL LEAVE UNDER THE *15% share of the management was abolished by RA
MAGNA CARTA IF WOMEN NO 11360 (Sep.4, 2019)
(CHECK A.131, LC)
Coverage:

All employees are covered REGARDLESS OF

SIL VL/SL THEIR POSITION, DESIGNATION.
compliance EMPLOYMENT STATUS.
Mandatory Voluntary grant IRRESPECTUCE OF THE METHOD BY WHICH
THEIR WAGES ARE PAID EXCEPT
Legally required Results from
MANAGERIAL EMPLOYEES.
employer’s
discretionary policy/ (IRR OF LC)
CBA
purpose
Intended to alleviate the Intended to afford the
economic condition of laborer a chance to get Apply only to (those collecting service charges)
the workers a much needed rest to -hotels
replenish his worn out
Acts as replacement of energies (vacation -Restaurants
regular income that leave)
wont be earned during -lodging houses
such leave Acquire new vitality to
-Night clubs
enable him to
efficiently perform his -Cocktail longers
duties
-Massage clinics
Not merely to give him
additional salary -Bars
waiver
-Gambling houses
CANT be waived Must be demanded in
its opportune time - similar establishments

Silence would equate to

waiver, same being a
mere concession/act of Frequency of distribution
grace of employer - Shares referred to shall be distributed and
commutability
paid to employees NOT LESS THAN
commutable Not commutable ONCE every 2 WEEKS / TWICE
AMONTH
ARTICLE 96 - Intervals not exceeding 16 days

SERVICE CHARGES Rule in case of abolition

Distributed as follow: - If the service charge is abolished, share of

the covered employees shall be considered
1. 85% for all covered employees integrated in their wages (andon na kasama
to be equally distributed among them na )
2. 15% for disposition by management to - Basis of the INTEGRATED AMOUNT
answer for losses and breakages shall be the average share of each employee
for the past 12 months IMMEDIATELY
At the discretion of the management, PRECEDING THE
distribution to managerial employees ABOLITION/WITHDRAWAL OF SUCH
CHARGES
 UY, A.

Pooled tips 13th month pay

- Handled similarly as service charges - Form of monetary benefit

- If the establishment doesn’t collect SC but - Equivalent to the monthly basic
has a practice of pooling tips given compensation received by an employee
VOLUNTARILY by customers - Computed pro-rata according to the no. of
- Pool tips should be monitored, accounted for months within a year that employee has
and distributed in the same manner as the rendered service
service charges
- Waiter must drop in a tip box the tips he Minimum amount
received otherwise he commits “tip - Not less than 1/12 of the basic salary within
pocketing”, serious offense of dishonesty a calendar year
and may cost him his job
Basis

- Basic salary includes ALL

REMUNERATIONS/EARNINGS PAID
BY AN EMPLOYER for services rendered
- DOESN’T include all allowances and
monetary benefits which are NOT integrated
as part of the regular/basic salary

Such as:

1. cash equivalent of unused vacation leave and sick

leave credits

2. commissions

(if not an integral part of the basic salary)

3. cost of living allowance/ COLA

4. holiday pay

5. overtime pay

6. premium pay

7. night shift differential

*OT earnings and those not part of the basic salary

are NOT INCLUDED in computing 13th month pay

BUT THESE SALARY-RELATED BENEFITS

SHOULD BE INCLUDED IN THE COMPUTATION
IF BY INDIVIDUAL/CBA, COMPANY
PRACTICE/POLICY, THE SAME IS TREATED AS
PART OF THE BASIC SALARY.

Salesmen’s commissions

- Pre-determined percent of the selling price

of goods sold by each salesman
- Included in the basic salary
WEEK 5, WEEK 6 - For purposes of computing 13th month pay
 UY, A.

Commission vis-à-vis 13th month pay 1. purely commission basis

- To include in the 13th month pay- 2. boundary basis

commission SHOULD BE PART OF THE
3. task basis
BASIC SALARY
4. fixed amount for performing a specific work
Case: commissions paid to the medical representative
of Boie-Takeda chemicals / rank-and-file employees except where the workers are paid on piece-rate
of fuji xerox were excluded from the term “basic basis in which the employer shall be covered by this
salary”. issuance insofar as such workers are concerned
These were paid as “productivity incentives” instead.

Such bonuses closely resemble profit-sharing -employers already paying their employees 13th
payments and have no clear, direct, necessary month pay/more in a calendar year/ its equivalent
relation to the amount of work actually done by each at the time of this issuance
individual employee.

“its equivalent” includes

Productivity incentives
[Link] bonus
1. kind of bonues that comes from productivity gain
[Link] bonus
[Link] to institute productivity at company level and
the sharing of productivity gain between ER-EE 3. profit-sharing payments

3. nature of salary bonus is proportionate to increases 4. other cash bonuses not less than 1/12 of the
in current productivity basic salary

*commissions of medical representatives don’t form -government and any of its political subdivisions
part of the basic salary
Including GOCCs except those corporation
NOT INCLUDED IN THE COMPUTATION OF operating essentially as private subsidiaries of the
13TH MONTH PAY government

- Medreps are not salesmen

- They don’t effect any sale of article at all
-distressed employers such as:
- Additional payment is in the nature of profit-
sharing bonueses 1. those currently incurring substantial losses

[Link]-profit institutions and organizations where

their income has consistently declined by more
Coverage than 40% of their normal income FOR THE
1. employers LAST 2 YEARS

GR: all employers are covered by this rule (consti recognizes right of private business to
ROI)

EXCEPTION:
*workers paid on piece-rate basis
-Employer of those who are paid on:
-paid a standard amount for every piece or unit of
work produced
 UY, A.

-more/less regularly replicated w/o regard to the time Non- inclusion in regular wage
spent in producing
- Mandated 13th month pay
- Need not be credited as part of regular wage
of employees

2. employees For purposes of determining

overtime and premium pays
GR: all rank-and-file employees fringe benefits insurance fund
Regardless of the amount of basic salary they Social security
receive in a month Medicare
Private retirement plans
If their employers are not exempted from paying the
13th month pay *based on wage but not part of wage

*employees are entitled to 13th month pay Rules on certain types of employees

Regardless of their designation/employment status 1. employees paid by results

Irrespective of the method by which their wages are - By law entitled to 13th month pay
paid (ees paid on piece work basis)

Provided they have worked for at least 1 month (ees paid a fixed wage)
during a calendar year - wage plus commission and entitled to 13th
month pay based on their total earnings
during the calendar year
EXCEPTION: (on both their fixed guaranteed wage and
commission)
1. employees paid on purely commission basis
2. employees w/ multiple employers
2. employees already receiving 13th month pay
- entitled to 13th month pay from all their
3. government employees PRIVATE EMPLOYERS

Regardless of the total earnings from

*Domestic workers are not entitled to 13th month pay each/all their employers

RA 10361 (So separate 13th month pay from each employer?)

- gov employees working part time in a

private enterprise
Time of payment
- private educational institutions
- Paid not later than DEC24 of each year - employees working in 2/more private firms

*Employer MAY GIVE to his ees ½ of the 3. private school teachers

required 13th month pay before the opening of
- entitled to the required 13th month pay
the regular school year and the other half on/
regardless of the no. of months they teach/
before DEC 24
paid within a year
*frequency of payment may be subject to
agreement between ER sand CBA agent of the if they have rendered service for at least 1
employees month within a year
 UY, A.

- including faculty members of universities

and colleges
2. Using 426 per day as the basic pay
- PRIVATE
6 day work-week

Monthly basic salary of 11,111,5.

Pro-rated 13th month pay
(check memaid example)
- Employee who resigned/ services terminated
At any time before the payment of the 13th
month pay
14th month pay
Entitled to such monetary benefit NOT LEGALLY DEMANDABLE
IN PROPORTION TO THE LENGTH OF
TIME HE WRKED DURING THE YEAR - Basically a bonus
RECKONED FROM THE TIME HE - Gratuitous in nature
STARTED WORKING DURING THE - Management prerogative which cant be
CALENDAR YEAR UP TO THE TIME OG forced upon the employer
HIS resignation/ TERMINATION FROM
SERVICE
Coverage from income tax of the 13th month pay
(baka ipa elaborate pa calendar year)
- 13th month pay, productivity incentives,
Christmas bonues
GR: pro-ration of 13th month pay applies only in - Not exceeding 90k are exempt from taxation
cases of resignation/separation from work
Adjudication of claims
Computation should be based on length of service
and NOT ON THE ACTUAL WAGE EARNED - Non-payment of 13th month pay
BY THE WORKER shall be treated as money claims cases

EXCEPTION: employees who are paid a

guaranteed minimum wage/commissions earned SOCIAL WELFARE LEGISLATION
ENTITLED TO 13 MONTH PAY BASED O
TH
Laws that provide a particular kinds of protection/
TOTAL EARNINGS benefits to society/segments thereof. social justice.

SOCIAL SECURITY SYSTEM

Ex. RA NO 1161 as amended by RA NO 8282
1. X worked for 6mos prior to resignation. He
received a monthly salary of php7500.
Maternity benefit under SSS
X’s 13th month pay is:
Maternity leave
(monthly salary x months worked)
Section 14-A of RA 1161
Divided by 12
Amended by RA 7322
= proportionate 13th month pay
Further amended by RA 8282
7500 x 6mos / 12

= 3750
Expanded maternity leave
X is entitled to php3750 for his 13th month pay
 UY, A.

- Any female member 1. employee shall have notified her employer of her
- Who has paid at least 3 monthly pregnancy and the probable date of her childbirth
contributions in the 12-month period
immediately preceding the semester of her Which notice shall be transmitted to the SSS in
childbirth/miscarriage
- SHALL BE PAID A DAILY MATERNITY accordance with the rules and regulations it may

BENEFIT EQUIVALENT TO 100% OF provide

HER AVERAGE DAILY SALARY 2. full payment shall be advanced by the employer
CREDIT FOR 60 DAYS/ 78 DAYS IN within 30 days from the filling of maternity leave
CASE OF CAESARIAN DELIVERY application
- granted to employees in lieu of wages and
3. payment of daily maternity benefits shall be a bar
may not be included in computing the 13th
tor the recovery of sickness benefits provided by this
month pay
act for the same period for which daily maternity
-
benefits have been received
Qualifications for entitlement of maternity benefit
4. maternity benefits provided under this section shall
1. female member should be an SSS member be paid only for the first 4 deliveries/ miscarriages

2. employed at the time of delivery, miscarriage, 5. SSS shall immediately reimburse the employer of
abortion 100% of the amount of maternity benefits advanced
to the employee
3. she must have given the required notification to the
SSS through her employer Upon receipt of satisfactory proof of such payment
and legality thereof
4. must have paid at least 3 monthly contributions in
the 12-month period immediately preceding the 6. if an employee member should give birth/suffer
semester of her childbirth/miscarriage miscarriage w/o the required contributions remitted
for her by the employer to the SSS or w/o the latter
being notified by employer at the time of pregnancy
*every pregnant woman is entitled to maternity leave
Employer shall pay to the SSS damages equivalent to
benefits
the benefits which said employee member would
Regardless of her civil status, whether married/ otherwise have been entitled to.
unmarried

(basta syempre employee siya)

*under the MAGNA CARTA OF WOMEN
(does this cover managerial employees, field
Women in the military, police and other services
personnel?) check coverage ng SSS
SHALL BE ENTITLED TO LEAVE BENEFITS
SUCH AS maternity leave

Conditions (provided by law)

 UY, A.

- Shall be granted to female workers in every

instance of pregnancy, miscarriage or
*not necessary that a womean be impregnated by her
emergency termination of pregnancy,
legitimate spouse
regardless of frequency
Immaterial who the father is
*in case the worker qualifies as a SOLO PARENT
Every pregnant woman in the PRIVATE SECTOR under the SOLE PARENTS’ WELFARE ACT
whether married/ unmarried
The worker SHALL BE GRANTED AN
ENTITLED TO THE MATERNITY LEAVE ADDITIONAL 15 DAYS MATERNITY LEAVE
BENEFITS WITH FULL PAY

*being an unmarried woman IS NOT AN

OBSTACLE for the grant of such benefits to the less
2. applicability to employees in the public sector
fortunate
Qualifications for entitlement of female workers in
the public sector
Important changes under RA 11210
-should be in government service
EXPANDED MATERNITY LEAVE
In national government agencies
1. expanded coverage
Local government units
- All covered female workers in the
GOCCs
government and private sector
Including those in the informal economy State universities/colleges
Regardless of civil status/ legitimacy of her
-head of the agency shall be given due notice in
children
writing, at least 45 days before the end of the
maternity leave
- SHALL BE PAID A DAILY MATERNITY
BENEFIT EQUIVALENT OF HER 100%
AVERAGE DAILY SALARY CREDIT
3. maternity leave shall be granted to female workers
FOR 105 DAYS FOR CHILDBRITH
in every instance of pregnancy,
Whether normal or caesarian delivery
miscarriage/emergency termination of pregnancy,
regardless of frequency
- OR 60 DAYS FOR
MISCARRIAGE/EMERGENCY 4. allocation of maternity leave credits

ERMINATION - Entitled to it at her option

WITH AN OPTION TO EXTEND FOR
ADDITIONAL 30 DAYS WITHOUT PAY
 UY, A.

- Allocate up to 7 days to the child’s father, 60 days for normal 105 days for childbirth,
whether or not the same is married to the delivery, emergency whether
female worker termination, or normal/caesarian
miscarriage
- In the death, absence, incapacity of the 60 days for miscarriage/
father, the benefit may be allocated to an 78 days for caesarian emergency termination
alternative caregiver delivery
Who may be a relative within the 4 degree
th
With an option to
of consanguinity/ current partner of the extend for additional
female worker sharing the same household 30 days without pay
UPON THE ELECTION OF THE
MOTHER TAKING INTO ACCOUNT When the worker
THE BEST INTEREST OF THE CHILD qualifies as a solo

(like distribute? Share it with the dad? Then with pay parent, she shall be

yung days na di papasok yung dad to be with the granted an additional

mom after giving birth?) 15 days.

(without pay?)

*maternity leave benefits granted under this act shall Allocation of maternity
be enjoyed by a female worker in the government leave benefits
service and in the private sector EVEN IF SHE HAS none May allocate up to 7
A PENDING ADMINISTRATIVE CASE days of said benefits

RA 7322 RA 11210
COVERAGE (Is abortion same with emergency termination?)
Covered female All covered female
Include solo parent leave???
employee who has paid workers in government
at least 3 monthly and private sector
contributions in the 12- Including those in the Battered woman leave under VAWC
month period preceding informal economy
Leave for victims of violence against women and
the semester of her
their childer
childbirth, abortion or
miscarriage

RA 9262
Currently employe
Number of leave
benefit
Violence against women and their children
 UY, A.

VAWC EXTENDIBLE WHEN THE NECESSITY

ARISES AS SPECIFIED IN THE
- Any act/ series of acts committed by any
PROTECTION ORDER
person against a woman
Who is his wife Requirement for entitlement
Former wife
- ONLY REQ
Woman with whom the person has/ had a
sexual/ dating relationship -victim-employee must present to her employer a
certification from the punong barangay/kagawad/
With whom he has a common child prosecutor/ clerk of court that an action relative to
the matter is pending
Against her child

whether/suffering economic abuse including -shall be issued at no cost to the woman

threats of such acts, battery, assault, for government employees (REQ FOR
coercion, harassment/ arbitrary deprivation ENTITLEMENT)
of liberty
-certification
- legitimate. Illegitimate
-file an application for leave citing as basis RA 9262
Within/without the family abode

Which result in/likely to result in physical, sexual,

psychological harm Usage of the benefit

- Availment of the 10 day leave

- At the option of the woman employee
Leave benefit
- Covers the days she has to attend to medical
- Any time during the application of any and legal concerns
protection order, investigation, prosecution - Leaves not availed of are non-cumulative
and/or trial of the criminal case and non-convertible to cash
- Victim of vawc (employed) SHALL BE
Jurisdiction
ENTITLED TO A PAID LEAVE OF UP
TO 10 DAYS - Administrative enforcement of this leave
entitlement
In addition to other paid leaves under the - Within the jurisdiction of the regional
LC and civil services rules and regulations director of DOLE
Existing laws, company policies
Under A.129, LC
 UY, A.

(FOR EMPLOYEES IN THE PRIVATE For work done/ to be done for services
SECTOR) rended/ to be rendered

Under CSC (FOR GOVERNMENT - Includes the fair & reasonable value of
EMPLOYEES) board, lodging, or other facilities
Customarily furnished by the employer
Penalties Determined by Sec of Labor

“fair & reasonable value”

- Employer/agency head who denises the
application for leave - Shall not include any profit to the employer/
to any person affiliated to him
Who shall prejudice the victim-survivor/ any
person for assisting a co-employee who is a wage salary
nature
victim- Paid to white collar paid to white collar
Survivor workers workers

- SHALL BE HELD LIABLE FOR Denote compensation denote higher/superior

DISCRIMINATION AND VIOLATIN OF for manual/ unskilled level of employment
labor
RA 9262 Exemption to
- Provision of the LC and CSRR/ civil service execution,
garnishment/
rules and regulations shall govern the attachment
penalty to be imposed on the said not subject to the above Subject to execution,
garnishment/
employer/agency head. Attachment
EXCEPT FOR DEBTS
RELATED TO FOOD,
TITLE II CLOTHING, Not exempt from the
SHELTER AND aabove
WAGES
MEDICINES
CHAPTER I

PRELIMINARY MATTERS fair day’s wage for a fair day’s labor

ARTICLE 97 no work, no pay principle

DEFINITIONS - No work performed by the employee then no

wage
Wage - UNLESS the laborer was able, willing, and
ready to work BUT was illegally locked out,
- Earnings/ remunerations (however
suspended/dismisses/ illegally prevented
designated)
from working
- Capable of being expressed in terms of
(in these instances may pay dapat kahit hindi
money
nag work?)
- Fixed/ascertained on a TIME/TASK/
PIECE/ COMMISSION BASIS
Or other method of calculating such Equal pay for equal work

- Employees holding the same position and

- Payable by an employer to an employee rank
Under a written/ unwritten contract of - Presumed to be performing equal work
employer
- Whether hired locally or abroad
 UY, A.

- Must have the same rate of wage nature

Items of expense Extra remuneration or
Commission special benefits for the
Necessary for the employer
- Direct remuneration
laborer and his family’s
- Calculated as a percentage on the amount of
existence and
his transactions/on the profit to the principal subsistence
Received by: deductibility
Part of the wage Independent of the
- agent wage
- Salesman deductible Not deductible
- Executor
- Broker
*foods/snacks/ other convenience provided by the
- trustee employer
facilities Deemed supplements if they’re granted for the
- all articles/ services for the benefit of the convenience of the employer
employee/ his family Criterion in determining if facility/ supplement:
- DOES NOT INCLUDE tools of the trade/
articles/services PRIMARILY FOR THE doesn’t lie in the kind of the object but on its purpose
BENEFIT OF THE EMPLOYER
- Or necessary to the employer’s business
(supplement: The employer is actually gratuity
investing in his business when )
- Given freely w/o recompense
Deduction of facilities - To reward employees who have rendered
satisfactory and efficient service
Requisites (CAF )
- Doesn’t form part of the wage
1. Customarily furnished by the trade
2. Provision of deductible facilities MUST BE Allowances
VOLUNTARILY ACCEPTED in writing by - Amounts of money
the employee - Not part of the wages
3. Must be charged at fair and reasonable value
- Given in consideration of certain expenses
*employer may deduct from the wages NOT MORE - Like transportation and representation
THAN 70% of the value of the meals and snacks
13th month pay
enjoyed by the employees
Included in the definition of wage
Provided that such deduction is authorized in writing
by the employees. - Additional income
- Cant deduct from it w/o employee’s
REMAINING 30% of the value has to be subsidized
knowledge and consent
by the employer.

ARTICLE 98
Supplements
APPLICATION OF TITLE
- Extra remuneration/ special
privileges/benefits GR: title on wages applies to all employees
- Given to/received by the laborers OVER
AND ABOVE their ordinary wages Exceptions:

facilities supplements 1. Farm tenancy/ leasehold

 UY, A.

2. Household/ domestic helpers COLA

3. Homeworkers engaged in needle-work
4. Workers employed in any establishment - Not in the nature of an allowance
duly registed w/ NATIONAL COTTAGE - Intended to reimburse expenses incurred by
INDUSTRY DEVELOPMENT employees in the performance of their
AUTHORITY (NACIDA) official functions
5. Workers in duly registered cooperatives - Not payment in consideration of the
6. When so recommended by the bureau of fulfillment of official duty
cooperative development upon approval by - To cover increases in the cost of living
the SOLE
Cost of living
7. Workers of a barangay micro business
enterprise - level of prices relating to a range of
everyday items
*for a retail/ service establishment
- cost of purchasing the goods and services
TO BE EXEMPTED FROM THE COVERAGE OF which are included in an accepted
THE MINIMUM WAGE LAW standard level of consumption

It must be shown that the establishment is ability to pay immaterial

REGULARLY EMPLOYING NOT MORE THAN 1O - employer cant exempt himself [Link] to
WORKERS & HAD APPLIED FOR EXEMPETIONS pay minimum wages
WITH AND AS DETERMINED BY THE - poor financial status condition of the
APPROPRIATE REGIONAL BOARD company cant justify payment below
minimum wage
“regulary employing”
- payment of minimum wage isn’t dependent
- More/less uniform or usual no. of employees on employer’s capability to pay
empoyed by retail/servuice enterprise during
estoppel NOT applicable
its normal operations
- acceptance by an employee of the wages
(like all year round less than 10 lang talaga
paid to him w/o objection DOES NOT give
employees nila, maghahire lang ng extra if
rise to estoppel
kunware Christmas season)
precluding him from suing for the difference
between the amount received and the one
CHAPTER II HE SHOULD HAVE pursuant to the
VALID minimum wage law
MINIMUM WAGE RATES

ARTICLE 99 where it doesn’t appear that the employer

changed his position to his own prejudice
REGIONAL MINIMUM WAGES
(anong year na and anong valid minimum wage law)
Minimum wage
- employer has no obli to implement a wage
- Lowest (basic) wage rate order across the board
- Fixed by law - only those employees receiving salaries
- Lowest that employer can pay his workers below the prescribed [Link] are entitled
- Mandatory to wage increase
- Non-waivable & non-negotiable

*Compensation less than the minimum rate =

ARTICLE 100
underpayment

- Violates the law

 UY, A.

PROHIBITION AGAINST ELIMINATION/ Benefits given to employees CAN NOT BE taken

DIMINUTION OF BENEFITS back/ reduced unilaterally by the employer
because the benefit has become part of the
employment contract, written/unwritten
BLANKET PROVISION AGAINST EBNEFITS Exceptions:
ALREADY GRANTED BY THE EMPLOYEE
1. Correction of error
IF NAGBIGAY KA NA 20 PERCET NA NSD 2. Negotiated benefits
BAWAL MO NA BIBALIK SA 15 PERCENT 3. Wage order compliance
NEXT YEAR 4. Benefits on reimbursement basis
BABANGGA KA NA SA A100 5. Reclassification of position
6. Contingent benefits of conditional bonus
LEAVES ARE BENEFITS 7. Productivity incentives
SIL IS A BENEFIT Non-chargeability clause
JUST LIKE NSD Stop lock gate
IF NAGBIGAY KA NA NG SERVIICE - Allowance granted under the CBA
INCENTIVE LEAVE BAWAL MO NA IBALIK SA - Cant be credited to similar form of benefit
LIMA that may thereafter be ordained by the
government through legislation

Bonus
Elimination is present under these requisites
- Amount granted and paid to an employee
1. Practice is consistent and deliberate
2. Diminution/ discontinuance is done - For his industry and loyalty
UNILATERALLy by the employer - which contributed to the success of the
3. Grant of the benefit is founded on a policy/ business and made possible the realization
ripened into a practice over a long period of profits
4. Practice IS NOT due to error in the GR: BONUS is not demandable as a matter of
construction/application of a right.
doubtful/difficult question of law
Management prerogative
*if it’s a past error that’s being corrected
Given in addition to what’s ordinarily received/
NO vested right arose nor any diminution of benefit strictly due.
under A.100

May be said to have resulted by virtue of the

correction Exceptions:

1. When it was promised to be given w/o any

condition imposed for its payment
Non-diminution rule in which case it is deemed part of the wage.
GR: nothing in the LC shall be construed to 2. When it has ripened into practice
eliminate/ in any way diminish supplements or *to be considered a regular practice, the giving of
other employee benefits being employed at the bonus SHOULD HAVE BEEN DONE OVER A
time of promulgation of LC LONG PERIOD OF TIME AND MUST BE
Employees have a vested right over existing SHOWN TO HAVE BEEN CONSISTENT AND
benefits voluntarily granted to them by their DELIBERATE.
employer
 UY, A.

ARTICLE 101 Including those who are engaged on task/contract

basis, purely commission/ paid a fixed amount for
PAYMENT BY RESULTS performing work irrespective of the time consumed.
Workers paid on piece-rate basis

- Paid a standard amount for every piece/ unit CHAPTER III

of work produced
- More/less regularly replicated PAYMENT OF WAGES
- w/o regard to the time spent in producing it
ARTICLE 102
categories of workers paid by results
FORMS OF PAYMENT
as to presence of control
Employer CAN NOT PAY his workers by means of:
- supervised (piece-rate worker)
1. Vouchers
- unsupervised (pakiaw/ takay) 2. Promissory notes
as to rate of payment 3. Any object other than legal tender
4. Coupons
- paid piece rates as prescribed in piece 5. Chits
rate orders by DOLE 6. Tokens
- paid output rates which are prescribed by 7. Tickets
the empoyer and NOT YET APPROVED
BY DOLE *any other form alleged to represent legal tender is
absolutely prohibited even when expressly requested
*Workers paid by results (even under pakiwa/takay) by the employee.
SHALL RECEIVE NOT LESS THAN THE
PRESCRIBED STATUTORY MINIMUM WAGE GR: payment shall be made in legal tender
RATE for an 8-hour work/ proportion thereof for less (check ITL notes for legal tender)
than 8-hours
EXCEPTIONS:

Payment by check/money order may be allowed if

Benefits payable to piece-rate workers the same is..
Whose work is directly supervised by the employer 1. Customary on the date of effectivity of the
1. meal and rest periods LC
2. overtime pay (Conditional) 2. Necessary because of special
3. applicable statutory minimum daily rate circumstances as determined by the SOL
4. yearly service incentive leave of 5 days 3. Stipulated in the CBA
w/pay 4. Where the following conditions are met
5. premium pay ( conditional) - Bank/ other facility for encashment
6. holiday pay within a radius of 1km from the
7. other benefits granted by law, CBA, workplace
company practice/policy
8. night shift differential - Employer/ any of his
9. 13th month pay agents/representatives DOES NOT
RECEIVE any pecuniary benefit directly/
*rules implementing the LC on NSD AND SILA DO indirectly from the arrangement
NOT APPLY TO employees whose time and (explain)
performance ARE UNSUPERVISED BY THE
EMPLOYERS.
 UY, A.

- Employees are given reasonable time calamity RENDERING PAYMENT

during banking hours to withdraw their thereat IMPOSSIBLE
wages from the bank 2. Employer provides for free
Which time shall be considered as transportation to the employees back and
compensable hours worked if done during forth
working hours (ha pwede if kunware sa bahay ni boss
then ihahatid pabalik sa office?)
3. Under any other analogous circumstances
- Payment by check is w/ the written Prohibition:
consent of the employees concerned if
there is no CBA authorizing such No employer shall pay his employees IN ANY
payment by bank checks. BAR, NIGHT/DAY CLUB, DRINKING
ESTABLISHMENT, MASSAGE CLINIC,
DANCE HALL or other similar places or IN
ARTICLE 103 PLACES WHERE GAMES ARE PLAYED
WITH STAKES OF MONEY/THINGS
TIME OF PAYMENT representing money

GR: EXCEPT IN THE CASE OF PERSONS

EMPLOYED IN SAID PLACES.
1. At least once every 2 weeks
2. Twice a month at intervals not exceeding
16 days
Requisites for payment thru banks
EXCEPTIONS:
1. Concerned establishment must be located
1. In case of force majeure/ other within 1km radius to the bank
circumstances beyond employer’s control 2. Written permission of the majority of the
Payment must be made immediately after employees concerned
such occurrence has ceased 3. Establishment must have 25 or more
2. In case of payment of wages by result employees
involving work which cannot be
completed in 2 weeks and in the absence
of CBA/ arbitration award *payment through an ATM is allowed, provided the
3. Payment at intervals not exceeding 16 ff conditions are met
days in proportion to the amount of work
completed 1. ATM system of payment is w/ written
4. Final settlement is made upon completion consent of the employee concerned
of the work
2. Employees are given reasonable time to
withdraw their wages fr the bank facility
ARTICLE 104 Which if done during working hours, shall
be compensable working hours.
PLACE OF PAYMENT
3. Bank/ ATM facility within a radius of 1km
GR: must be at or near the place of undertaking
fr the workplace
EXCEPTIONS:
4. System shall allow the employee to receive
1. Payment cant be effected at or near the their wage within the period and in the
workplace because of deterioration of amount prescribed under the LC
peace and order conditions 5. Upon the request of the concerned
Or by reason of actual/impending employee, employer shall issue a record
emergencies cause by fire, flood, other
 UY, A.

evidencing payment of wages, benefits, and - In case of a minor heir. Affidavit shall be
deductions for a particular period executed on his behalf by his natural
guardian or next of kin
6. Employer shall assume full responsibility in - Affidavit shall be presented to the
case the wage protection provisions of law employer who shall make payment
and regulations are not complied with under through the SOL/his rep
the arrangement - Representative shall act as referee in
dividing the amount
7. ATM system of payment shall neither result
in diminution of benefits and privileges of Payment through a family member of the
the employee nor shall the latter incur worker’s family
additional expenses in the process
- Where the employer is authorized in
writing by the employee to pay his wages
to a member of his family
ARTICLE 105

DIRECT PAYMENT OF WAGES

SUMMARY OF PAYMENT OF WAGES
GR: wages shall be paid directly to the workers to
whome they are due WHAT MUST BE PAID

EXCEPTIONS: WHEN MUST IT BE PAID

Payment through another person WHERE MUST IT BE PAID

1. In case of force majeure which makes HOW MUST IT BE PAID

payment impossible
Provided said person is under a written
authority given by the worker for the WEEK 7-8
purpose

2. Authorized under existing law, including

BOOK ONE
payments for insurance premiums of the
employee and union dues where the right PRE-EMPLOYMENT
to check-off has been recognized by the
employer in accordance w/a CBA
Or authorized in writing by the individual TITLE I
employees concerned
RECRUITMENT AND PLACEMENT OF
Payment through the heirs of the worker WORKERS
- If the worker has died, employer may pay
wages of the deceased employee to the
heirs w/o necessity of INTESTATE CHAPTER I
PROCEEDINGS.
GENERAL PROVISIONS
Procedure:

- Claimants shall execute an affidavit

DO 141-14
attesting their relationship to the deceased
& the fact that they are his heirs, to the RECRUITMENT AND PLACEMENT
exclusion of all others

MIGRANT WORKERS ACT AND ITS IRR

 UY, A.

Migrant workers and overseas Filipinos act of

1995

RA 8042 as amended by RA 10022

JUNE 7,1995

- Policies on overseas employment

- Establishes a higher standard of protection
and promotion of the welfare of migrant
workers, their families and of overseas
Filipinos distress

RELEVANT PROVISIONS OF LC

RA 8759

AMENDED BY 10691 AND ITS IRR