Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Instruments
and
ILO
Conventions,
Welfare Legislation
3. Social Justice, Const., Art. II, Sec. 10; Art. XIII, Sec. 1-3
a. Definition/Balancing of Interest
c.
CMS Estate, Inc. v. Social Security System, 132 SCRA 108 (1984)
Limits of Use
5. Legal Bases
a. International Instruments
1)
b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 13, 14, 18; Art. XIII, Secs. 1, 3, 14
See also:
c.
1935 Const., Art. XIV, Sec., 6; 1973 Const., Art. II, Sec. 9
Labor Code (LC) and Omnibus Rules Implementing the Labor Code
d. New Civil Code of the Philippines (NCC), Arts. 19, 21, 1700-1701
6. Sources of Rights, Privileges and Benefits
a. International and Domestic Laws
b. Collective Bargaining Agreement, Art. 1305-1306, NCC
c.
Past Practices
d. Company Policies
A. Brief History
B. General Provisions
1. Decree Title, Art. 1
2. Effectivity, Art. 2
3
3. Policy Declaration, Art. 3
4. Construction in Favor of Labor, Art. 4
ART. 221. Technical rules not binding and prior resort to amicable settlement. - In any
proceeding before the Commission or any of the Labor Arbiters, the rules of evidence
prevailing in courts of law or equity shall not be controlling and it is the spirit and intention
of this Code that the Commission and its members and the Labor Arbiters shall use every
and all reasonable means to ascertain the facts in each case speedily and objectively and
without regard to technicalities of law or procedure, all in the interest of due process. In
any proceeding before the Commission or any Labor Arbiter, the parties may be
represented by legal counsel but it shall be the duty of the Chairman, any Presiding
Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the
proceedings at all stages.
Any provision of law to the contrary notwithstanding, the Labor Arbiter shall exert all
efforts towards the amicable settlement of a labor dispute within his jurisdiction on or
before the first hearing. The same rule shall apply to the Commission in the exercise of its
original jurisdiction. (As amended by Section 11, Republic Act No. 6715, March 21, 1989).
4
Section 2. (1) The civil service embraces all branches, subdivisions, instrumentalities,
and agencies of the Government, including government owned or controlled corporations
with original charters.
8. Enforcement and Sanctions Arts. 217 (a) (2), (3), (4), (6); 128-129; 288-292;
Consti., Art III, Secs. 11 and 16
ART. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as
otherwise provided under this Code, the Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the
submission of the case by the parties for decision without extension, even in the
absence of stenographic notes, the following cases involving all workers, whether
agricultural or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may
file involving wages, rates of pay, hours of work and other terms and conditions
of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from
the employer-employee relations;
5. Cases arising from any violation of Article 264 of this Code, including
questions involving the legality of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and
maternity benefits, all other claims arising from employer-employee relations,
including those of persons in domestic or household service, involving an
amount exceeding five thousand pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
ART. 128. Visitorial and enforcement power. - (a) The Secretary of Labor and
Employment or his duly authorized representatives, including labor regulation officers,
shall have access to employers records and premises at any time of the day or night
whenever work is being undertaken therein, and the right to copy therefrom, to
question any employee and investigate any fact, condition or matter which may be
necessary to determine violations or which may aid in the enforcement of this Code
and of any labor law, wage order or rules and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the
contrary, and in cases where the relationship of employer-employee still
exists, the Secretary of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
legislation based on the findings of labor employment and enforcement
officers or industrial safety engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall issue writs of execution
to the appropriate authority for the enforcement of their orders, except in
cases where the employer contests the findings of the labor employment and
enforcement officer and raises issues supported by documentary proofs
which were not considered in the course of inspection. (As amended by
Republic Act No. 7730, June 2, 1994).
An order issued by the duly authorized representative of the Secretary of
Labor and Employment under this Article may be appealed to the latter. In
case said order involves a monetary award, an appeal by the employer may
be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the Secretary of Labor and
5
Employment in the amount equivalent to the monetary award in the order
appealed from. (As amended by Republic Act No. 7730, June 2, 1994).
chanroblesvirtuallawlibrary
(c) The Secretary of Labor and Employment may likewise order stoppage of
work or suspension of operations of any unit or department of an
establishment when non-compliance with the law or implementing rules and
regulations poses grave and imminent danger to the health and safety of
workers in the workplace. Within twenty-four hours, a hearing shall be
conducted to determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the employees
concerned their salaries or wages during the period of such stoppage of work
or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or
otherwise render ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior court or entity shall issue
temporary or permanent injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of
authority, under this Article shall, after appropriate administrative
investigation, be subject to summary dismissal from the service.
(f) The Secretary of Labor and Employment may, by appropriate regulations,
require employers to keep and maintain such employment records as may be
necessary in aid of his visitorial and enforcement powers under this Code.
ART. 129. Recovery of wages, simple money claims and other benefits. - Upon
complaint of any interested party, the Regional Director of the Department of Labor
and Employment or any of the duly authorized hearing officers of the Department is
empowered, through summary proceeding and after due notice, to hear and decide
any matter involving the recovery of wages and other monetary claims and benefits,
including legal interest, owing to an employee or person employed in domestic or
household service or househelper under this Code, arising from employer-employee
relations: Provided, That such complaint does not include a claim for reinstatement:
Provided further, That the aggregate money claims of each employee or househelper
does not exceed Five thousand pesos (P5,000.00). The Regional Director or hearing
officer shall decide or resolve the complaint within thirty (30) calendar days from the
date of the filing of the same. Any sum thus recovered on behalf of any employee or
househelper pursuant to this Article shall be held in a special deposit account by, and
shall be paid on order of, the Secretary of Labor and Employment or the Regional
Director directly to the employee or househelper concerned. Any such sum not paid
to the employee or househelper because he cannot be located after diligent and
reasonable effort to locate him within a period of three (3) years, shall be held as a
special fund of the Department of Labor and Employment to be used exclusively for
the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this
provision may be appealed on the same grounds provided in Article 223 of this Code,
within five (5) calendar days from receipt of a copy of said decision or resolution, to
the National Labor Relations Commission which shall resolve the appeal within ten
(10) calendar days from the submission of the last pleading required or allowed under
its rules.chan robles virtual law library
6
The Secretary of Labor and Employment or his duly authorized representative may
supervise the payment of unpaid wages and other monetary claims and benefits,
including legal interest, found owing to any employee or househelper under this
Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989).
ART. 288. Penalties. - Except as otherwise provided in this Code, or unless the acts
complained of hinge on a question of interpretation or implementation of ambiguous
provisions of an existing collective bargaining agreement, any violation of the
provisions of this Code declared to be unlawful or penal in nature shall be punished
with a fine of not less than One Thousand Pesos (P1,000.00) nor more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than three months nor
more than three years, or both such fine and imprisonment at the discretion of the
court.
In addition to such penalty, any alien found guilty shall be summarily deported upon
completion of service of sentence. chanroblesvirtuallawlibrary
Any provision of law to the contrary notwithstanding, any criminal offense punished in
this Code, shall be under the concurrent jurisdiction of the Municipal or City Courts
and the Courts of First Instance. (As amended by Section 3, Batas Pambansa Bilang
70).
ART. 289. Who are liable when committed by other than natural person. - If the
offense is committed by a corporation, trust, firm, partnership, association or any
other entity, the penalty shall be imposed upon the guilty officer or officers of such
corporation, trust, firm, partnership, association or entity.
Title II
PRESCRIPTION OF OFFENSES AND CLAIMS
ART. 290. Offenses. - Offenses penalized under this Code and the rules and
regulations issued pursuant thereto shall prescribe in three (3) years.
All unfair labor practice arising from Book V shall be filed with the appropriate agency
within one (1) year from accrual of such unfair labor practice; otherwise, they shall be
forever barred.
ART. 291. Money claims. - All money claims arising from employer-employee
relations accruing during the effectivity of this Code shall be filed within three (3)
years from the time the cause of action accrued; otherwise they shall be forever
barred.
All money claims accruing prior to the effectivity of this Code shall be filed with the
appropriate entities established under this Code within one (1) year from the date of
effectivity, and shall be processed or determined in accordance with the implementing
rules and regulations of the Code; otherwise, they shall be forever barred.
Workmens compensation claims accruing prior to the effectivity of this Code and
during the period from November 1, 1974 up to December 31, 1974, shall be filed
with the appropriate regional offices of the Department of Labor not later than March
31, 1975; otherwise, they shall forever be barred. The claims shall be processed and
adjudicated in accordance with the law and rules at the time their causes of action
accrued.
ART. 292. Institution of money claims. - Money claims specified in the immediately
preceding Article shall be filed before the appropriate entity independently of the
criminal action that may be instituted in the proper courts.
7
Pending the final determination of the merits of money claims filed with the
appropriate entity, no civil action arising from the same cause of action shall be filed
with any court. This provision shall not apply to employees compensation case which
shall be processed and determined strictly in accordance with the pertinent provisions
of this Code.
Section 11. Free access to the courts and quasi-judicial bodies and adequate legal
assistance shall not be denied to any person by reason of poverty.
Section 16. All persons shall have the right to a speedy disposition of their cases
before all judicial, quasi-judicial, or administrative bodies.
C. Work Relationship
1. Employer and Employee Relationship
a. Definition of Employer and Employee, Arts. 97 (a) (b) (c), 167 (f)
(g) (h), 212 (e) (f)
8
(e) "Employer" includes any person acting in the interest of an employer,
directly or indirectly. The term shall not include any labor organization or any
of its officers or agents except when acting as employer.
(f) "Employee" includes any person in the employ of an employer. The term
shall not be limited to the employees of a particular employer, unless the
Code so explicitly states. It shall include any individual whose work has
ceased as a result of or in connection with any current labor dispute or
because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.
b. Factors/Tests
2. Independent Contractor and Labor-only Contractor, Art. 106-107, 109; DO No. 1802, S 2002
Art. 106. Contractor or subcontractor. Whenever an employer enters into a contract with
another person for the performance of the formers work, the employees of the contractor and
of the latters subcontractor, if any, shall be paid in accordance with the provisions of this
Code.
In the event that the contractor or subcontractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and severally liable with his
contractor or subcontractor to such employees to the extent of the work performed under the
contract, in the same manner and extent that he is liable to employees directly employed by
him.
The Secretary of Labor and Employment may, by appropriate regulations, restrict or 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 distinctions between labor-only contracting
and job contracting as well as differentiations within these types of contracting and determine
who among the parties involved shall be considered the employer for purposes of this Code,
to prevent any violation or circumvention of any provision of this Code.
There is "labor-only" contracting where the person supplying workers to an employer does not
have substantial capital or investment in the form of tools, equipment, machineries, work
premises, among others, and the workers recruited and placed by such person are
performing activities which are directly related to the principal business of such employer. In
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 manner and extent as if the
latter were directly employed by him.
Art. 107. Indirect employer. The provisions of the immediately preceding article shall
likewise apply to any person, partnership, association or corporation which, not being an
9
employer, contracts with an independent contractor for the performance of any work, task, job
or project.
Art. 109. Solidary liability. The provisions of existing laws to the contrary notwithstanding,
every employer or indirect employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code. For purposes of determining the
extent of their civil liability under this Chapter, they shall be considered as direct employers.
DEPARTMENT ORDER NO. 18 - 02
(Series of 2002)
.
.
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
.
.
By virtue of the power vested in the Secretary of Labor and Employment under Articles 5
(Rule-making) and 106 (Contractor or Subcontractor) of the Labor Code of the Philippines, as
amended, the following regulations governing contracting and subcontracting arrangements
are hereby issued:
Section 1. Guiding principles. - Contracting and subcontracting arrangements are expressly
allowed by law and are subject to regulation for the promotion of employment and the
observance of the rights of workers to just and humane conditions of work, security of tenure,
self-organization, and collective bargaining. Labor-only contracting as defined herein shall be
prohibited.
Section 2 . Coverage. - These Rules shall apply to all parties of contracting and
subcontracting arrangements where employer-employee relationship exists. Placement
activities through private recruitment and placement agencies as governed by Articles 25 to
39 of the Labor Code are not covered by these Rules.
Section 3. Trilateral Relationship in Contracting Arrangements. - In legitimate contracting,
there exists a trilateral relationship under which there is a contract for a specific job, work or
service between the principal and the contractor or subcontractor, and a contract of
employment between the contractor or subcontractor and its workers. Hence, there are three
parties involved in these arrangements, the principal which decides to farm out a job or
service to a contractor or subcontractor, the contractor or subcontractor which has the
capacity to independently undertake the performance of the job, work or service, and the
contractual workers engaged by the contractor or subcontractor to accomplish the job work or
service.
Section 4. Definition of Basic Terms. - The following terms as used in these Rules, shall
mean:
(a) "Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to
put out or farm out with a contractor or subcontractor the performance or completion of a
specific job, work or service within a definite or predetermined period, regardless of whether
such job, work or service is to be performed or completed within or outside the premises of
the principal.
(b) "Contractor or subcontractor" refers to any person or entity engaged in a legitimate
contracting or subcontracting arrangement.
(c) "Contractual employee" includes one employed by a contractor or subcontractor to
perform or complete a job, work or service pursuant to an arrangement between the latter and
a principal.
10
(d) "Principal" refers to any employer who puts out or farms out a job, service or work to a
contractor or subcontractor.
Section 5. Prohibition against labor-only contracting. - Labor-only contracting is hereby
declared prohibited. For this purpose, labor-only contracting shall refer to an arrangement
where the contractor or subcontractor merely recruits, supplies or places workers to perform a
job, work or service for a principal, and any of the following elements are present:
(i) The contractor or subcontractor does not have substantial capital or investment which
relates to the job, work or service to be performed and the employees recruited, supplied or
placed by such contractor or subcontractor are performing activities which are directly related
to the main business of the principal; or
(ii) the contractor does not exercise the right to control over the performance of the work of
the contractual employee.
The foregoing provisions shall be without prejudice to the application of Article 248 (C ) of the
Labor Code, as amended.
"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the
case of corporations, tools, equipment, implements, machineries and work premises, actually
and directly used by the contractor or subcontractor in the performance or completion of the
job, work or service contracted out.
The "right to control" shall refer to the right reserved to the person for whom the services of
the contractual workers are performed, to determine not only the end to be achieved, but also
the manner and means to be used in reaching that end.
Section 6. Prohibitions. - Notwithstanding Section 5 of these Rules, the following are hereby
declared prohibited for being contrary to law or public policy:
(a) Contracting out of a job, work or service when not done in good faith and not justified by
the exigencies of the business and the same results in the termination of regular employees
and reduction of work hours or reduction or splitting of the bargaining unit;
(b) Contracting out of work with a "cabo" as defined in Section 1 (ii), Rule I, Book V of these
Rules. "Cabo" refers to a person or group of persons or to a labor group which, in the guise of
a labor organization, supplies workers to an employer, with or without any monetary or other
consideration whether in the capacity of an agent of the employer or as an ostensible
independent contractor;
(c) Taking undue advantage of the economic situation or lack of bargaining strength of the
contractual employee, or undermining his security of tenure or basic rights, or circumventing
the provisions of regular employment, in any of the following instances:
(i) In addition to his assigned functions, requiring the contractual employee to perform
functions which are currently being performed by the regular employees of the principal or of
the contractor or subcontractor;
(ii) Requiring him to sign, as a precondition to employment or continued employment, an
antedated resignation letter; a blank payroll; a waiver of labor standards including minimum
wages and social or welfare benefits; or a quitclaim releasing the principal, contractor or
subcontractor from any liability as to payment of future claims; and
(iii) Requiring him to sign a contract fixing the period of employment to a term shorter than the
term of the contract between the principal and the contractor or subcontractor, unless the
latter contract is divisible into phases for which substantially different skills are required and
this is made known to the employee at the time of engagement;
11
(d) Contracting out of a job, work or service through an in-house agency which refers to a
contractor or subcontractor engaged in the supply of labor which is owned, managed or
controlled by the principal and which operates solely for the principal;
(e) Contracting out of a job, work or service directly related to the business or operation of the
principal by reason of a strike or lockout whether actual or imminent;
(f) Contracting out of a job, work or service being performed by union members when such
will interfere with, restrain or coerce employees in the exercise of their rights to self
organization as provided in Art. 248 (c) of the Labor Code, as amended.
Section 7. Existence of an employer-employee relationship. - The contractor or subcontractor
shall be considered the employer of the contractual employee for purposes of enforcing the
provisions of the Labor Code and other social legislation. The principal, however, shall be
solidarily liable with the contractor in the event of any violation of any provision of the Labor
Code, including the failure to pay wages.
The principal shall be deemed the employer of the contractual employee in any of the
following cases as declared by a competent authority:
(a) where there is labor-only contracting; or
(b) where the contracting arrangement falls within the prohibitions provided in Section 6
(Prohibitions) hereof.
Section 8. Rights of Contractual Employees. - Consistent with Section 7 of these Rules, the
contractual employee shall be entitled to all the rights and privileges due a regular employee
as provided for in the Labor Code, as amended, to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive leave, rest days, overtime pay, holiday pay,
13th month pay and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful concerted action; and
(e) Security of tenure.
Section 9. Contract between contractor or subcontractor and contractual employee. Notwithstanding oral or written stipulations to the contrary, the contract between the
contractor or subcontractor and the contractual employee, which shall be in writing, shall
include the following terms and conditions:
(a) The specific description of the job, work or service to be performed by the contractual
employee;
(b) The place of work and terms and conditions of employment, including a statement of the
wage rate applicable to the individual contractual employee; and
(c) The term or duration of employment, which shall be coextensive with the contract of the
principal and subcontractor, or with the specific phase for which the contractual employee is
engaged, as the case may be.
The contractor or subcontractor shall inform the contractual employee of the foregoing terms
and conditions on or before the first day of his employment.
Section 10. Effect of Termination of Contractual Employment. - In cases of termination of
employment prior to the expiration of the contract between the principal and the contractor or
subcontractor, the right of the contractual employee to separation pay or other related benefits
shall be governed by the applicable laws and jurisprudence on termination of employment.
12
Where the termination results from the expiration of the contract between the principal and
the contractor or subcontractor, or from the completion of the phase of the job, work or service
for which the contractual employee is engaged, the latter shall not be entitled to separation
pay. However, this shall be without prejudice to completion bonuses or other emoluments,
including retirement pay as may be provided by law or in the contract between the principal
and the contractor or subcontractor.
Section 11. Registration of Contractors or Subcontractors. - Consistent with the authority of
the Secretary of Labor and Employment to restrict or prohibit the contracting out of labor
through appropriate regulations, a registration system to govern contracting arrangements
and to be implemented by the Regional Offices is hereby established.
The registration of contractors and subcontractors shall be necessary for purposes of
establishing an effective labor market information and monitoring.
Failure to register shall give rise to the presumption that the contractor is engaged in laboronly contracting.
Section 12. Requirements for registration. - A contractor or subcontractor shall be listed in the
registry of contractors and subcontractors upon completion of an application form to be
provided by the DOLE. The applicant contractor or subcontractor shall provide in the
application form the following information:
(a) The name and business address of the applicant and the area or areas where it seeks to
operate;
(b) The names and addresses of officers, if the applicant is a corporation, partnership,
cooperative or union;
(c) The nature of the applicant's business and the industry or industries where the applicant
seeks to operate;
(d) The number of regular workers; the list of clients, if any; the number of personnel assigned
to each client, if any and the services provided to the client;
(e) The description of the phases of the contract and the number of employees covered in
each phase, where appropriate; and
(f) A copy of audited financial statements if the applicant is a corporation, partnership,
cooperative or a union, or copy of the latest ITR if the applicant is a sole proprietorship.
The application shall be supported by:
(a) A certified copy of a certificate of registration of firm or business name from the Securities
and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative
Development Authority (CDA), or from the DOLE if the applicant is a union; and
(b) A certified copy of the license or business permit issued by the local government unit or
units where the contractor or subcontractor operates.
The application shall be verified and shall include an undertaking that the contractor or
subcontractor shall abide by all applicable labor laws and regulations.
Section 13. Filing and processing of applications. - The application and its supporting
documents shall be filed in triplicate in the Regional Offices where the applicant principally
operates. No application for registration shall be accepted unless all the foregoing
requirements are complied with. The contractor or subcontractor shall be deemed registered
upon payment of a registration fee of P100.00 to the Regional Office.
13
Where all the supporting documents have been submitted, the Regional Office shall deny or
approve the application within seven (7) working days after its filing.
Upon registration, the Regional Office shall return one set of the duly-stamped application
documents to the applicant, retain one set for its file, and transmit the remaining set to the
Bureau of Local Employment. The Bureau shall devise the necessary forms for the
expeditious processing of all applications for registration.
Section 14. Duty to produce copy of contract between the principal and the contractor or
subcontractor. - The principal or the contractor or subcontractor shall be under an obligation
to produce a copy of the contract between the principal and the contractor in the ordinary
course of inspection. The contractor shall likewise be under an obligation to produce a copy of
the contract of employment of the contractual worker when directed to do so by the Regional
Director or his authorized representative.
A copy of the contract between the contractual employee and the contractor or subcontractor
shall be furnished the certified bargaining agent, if there is any.
Section 15. Annual Reporting of Registered Contractors. - The contractor or subcontractor
shall submit in triplicate its annual report using a prescribed form to the appropriate Regional
Office not later than the 15th of January of the following year. The report shall include:
(a) A list of contracts entered with the principal during the subject reporting period;
(b) The number of workers covered by each contract with the principal;
(c) A sworn undertaking that the benefits from the Social Security System (SSS), the Home
Development Mutual Fund (HDMF), PhilHealth, Employees Compensation Commission
(ECC), and remittances to the Bureau of Internal Revenue (BIR) due its contractual
employees have been made during the subject reporting period.
The Regional Office shall return one set of the duly-stamped report to the contractor or
subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt thereof.
Section 16. Delisting of contractors or subcontractors. - Subject to due process, the Regional
Director shall cancel the registration of contractors or subcontractors based on any of the
following grounds:
(a) Non-submission of contracts between the principal and the contractor or subcontractor
when required to do so;
(b) Non-submission of annual report;
(c) Findings through arbitration that the contractor or subcontractor has engaged in labor-only
contracting and the prohibited activities as provided in Section 6 (Prohibitions) hereof; and
(d) Non-compliance with labor standards and working conditions.
Section 17. Renewal of registration of contractors or subcontractors. - All registered
contractors or subcontractors may apply for renewal of registration every three years. For this
purpose, the Tripartite Industrial Peace Council (TIPC) as created under Executive Order No.
49, shall serve as the oversight committee to verify and monitor the following:
(a) Engaging in allowable contracting activities; and
(b) Compliance with administrative reporting requirements.
14
Section 18. Enforcement of Labor Standards and Working Conditions. - Consistent with
Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the Regional
Director through his duly authorized representatives, including labor regulation officers shall
have the authority to conduct routine inspection of establishments engaged in contracting or
subcontracting and shall have access to employer's records and premises at any time of the
day or night whenever work is being undertaken therein, and the right to copy therefrom, to
question any employee and investigate any fact, condition or matter which may be necessary
to determine violations or which may aid in the enforcement of the Labor Code and of any
labor law, wage order, or rules and regulations issued pursuant thereto.
The findings of the duly authorized representative shall be referred to the Regional Director
for appropriate action as provided for in Article 128, and shall be furnished the collective
bargaining agent, if any.
Based on the visitorial and enforcement power of the Secretary of Labor and Employment in
Article 128 (a), (b), (c) and (d), the Regional Director shall issue compliance orders to give
effect to the labor standards provisions of the Labor Code, other labor legislation and these
guidelines.
Section 19. Solidary liability. - The principal shall be deemed as the direct employer of the
contractual employees and therefore, solidarily liable with the contractor or subcontractor for
whatever monetary claims the contractual employees may have against the former in the
case of violations as provided for in Sections 5 (Labor-Only contracting), 6 (Prohibitions), 8
(Rights of Contractual Employees) and 16 (Delisting) of these Rules. In addition, the principal
shall also be solidarily liable in case the contract between the principal and contractor or
subcontractor is preterminated for reasons not attributable to the fault of the contractor or
subcontractor.
Section 20. Supersession. - All rules and regulations issued by the Secretary of Labor and
Employment inconsistent with the provisions of this Rule are hereby superseded. Contracting
or subcontracting arrangements in the construction industry, under the licensing coverage of
the PCAB and shall not include shipbuilding and ship repairing works, however, shall continue
to be governed by Department Order No. 19, series of 1993.
Section 21. Effectivity. - This Order shall be effective fifteen (15) days after completion of its
publication in two (2) newspapers of general circulation.
.
Manila, Philippines, 21 February 2002.
a. Requirements for Independent Contractor
b. Desirable Unnecessary
c.
d. Effect of Finding
15
Lanzaderas v. Amethyst Security & General Services, Inc., 404 SCRA 505
c.
6) Enforcement
a) Regulatory Power, Art. 36
b) Rule-Making Power, Art. 36
16
4. Sanctions, Arts. 35, 39 (a) (b) (c) (d) (e); RA 8042, Secs. 6 , 7, 10
a. Local Employment, Art. 39
b. Overseas Employment, Art. 35; RA 8042, Sec. 7
5. Issues and Questions on Overseas Employment
Readings:
c.
17
E. Human Resources Development
Reference: Arts. 57-81; Technical Education and Skills Development Authority Act of
1994 (TESDA) (RA 7796); Dual Training Systems Act of 1994 (RA 7686); Magna Carta for
Disabled Persons (RA 7277)
1.
2. Apprentice
a.
b.
c.
d.
e.
2.
Costs, Art. 71
3.
4.
Learners
5.
a.
b.
c.
18
c.
b) Shorter Meal Period (Less than One Hour, but Not Less than
20 min.), Rule I, Sec. 7, 1st par.
3) Waiting Time, Rule I, Sec. 5 (a)
19
g. Nightwork, ILO Conventions 89 (1948) and 171 (1990); Art. 86; Rule II, Secs. 1-6
1)
2)
b.
c.
d.
3. Holidays
Reference: Art. 94; Executive Order 203 (1987); Omnibus Rules, Book III, Rule IV
a. Definition
1) Retail Establishments, Rule Impl. RA 6727, par. f
20
2) Service Establishment, Rule Impl. RA 6727, par. g
b. Coverage/Exclusions, Art. 94 (a)
c.
5. Paternity Leave, Paternity Leave of 1996 (RA 8187), Secs. 1-6; Impl.
Rules
6.
Parental Leave, Solo Parents Welfare Act of 2000 (RA 8972); Impl. Rules
7.
Service Charges
Reference: Art. 96; Omnibus Rules, Book III, Rule VI
a.
b.
Sharing, Art. 96
21
1. Minimum Wage, Art. 99; Consti., Art. XIII, Sec. 3
a. Coverage, Arts. 97 (b) (c) (e), 98
b. Definition
c.
Rules
1) No Work, No Pay (A fair days wage for a fair days labor)
2) Equal Pay for Work of Equal Value, ILO Convention 100 (1951)
c.
Minimum Wage
1) Determination of Compliance with Minimum Wage
3) Cash Wage/Commission
5) Effect on Benefits
22
b. Agencies in Wage Fixing Machinery
1) National Wages and Productivity Commission, RA 6727, Sec. 3; Arts. 120,
121, 126
2) Regional Tripartite Wages and Productivity Board, RA 6727, Sec. 3; Arts.
122, 126
c.
2) Validity
3) Wage Distortion
23
c.
Requirement to Make Deposits for Loss or Damage, Art. Arts. 114, 115; Rule VIII,
Sec. 11
j.
5. Work Preference in the Event of Bankruptcy, Art. 110; Book III, Rule VIII, Sec. 7; Civil
Code, Arts. 1207, 2241 (6), 2242 (3), 2244 (2)
6. Wage Recovery/Jurisdiction, Arts. 128, 129, 217, 111; Book III, Rule X, Secs. 1-5
2. Coverage
b. Substitute Payment
24
c.
d. Diminution
I.
Bonus
1. Nature
b. Women under the Constitution, Art. II, Sec. 14; Art XIII, Sec 14
c.
d. Prohibited Acts
1) Night Work/Exception, ILO Convention 89 (1948); Art. 130-131
2) Discrimination, ILO Conventions 100 (1951) and 111 (1958); CEDAW Art. 11;
Art. 135
3)
Stipulation Against Marriage, Art. 136
25
Phil. Telegraph and Telephone Co. v. NLRC, 272 SCRA 596 (1997)
4)
2. Minors
References: Arts 139-140; Omnibus Rules, Book III, Rule XII, Secs. 2-3; Special
Protection of Children Act of 2003 (RA 7610, as amended by RA 9231); ILO
Convention Nos.130 and182 (1999); ILO Recommendation No. 190
a. Minors under the Constitution, Art. II, Sec. 13
b. Coverage, RA 9231, Sec. 2, par. 3 on Sec. 12; Book III, Rule XII, Sec. 1
c.
Employment of Children, ILO Convention 138 (1973); Art. 139; RA 7610, Sec. 1216; DOLE DO No. 04, S 1999 Re: Hazardous and Non-Hazardous
Establishments
Del Rosario and Bonga, Issues and Gaps Governing Child Labor, in Child
Labor in the Philippines, A Review of Selected Studies and Policy Papers, pp.
178-183 (2000).
3. Househelpers/Caregivers
Reference: Arts. 141-152; Omnibus Rules, Book III, Rule XIII
a. Definition, Rule XIII, Sec. 1 (b)
b. Coverage, Art. 141
c.
26
a. Coverage and Regulation, Arts. 153-155; DO 5, DOLE, 4 Feb. 1992, now Book
III, Rule XIV
b. Definition, DO 5, Sec. 2, DO 5
c.
Prohibitions, Sec. 13
g. Enforcement, Sec. 10
K. Mental, Dental and Occupational Safety
Reference: Art. 156-165; Omnibus Rules, Book IV, Rule I, Secs. 1-10; Rule II, Secs. 1-!0
1. Coverage, Rule I, Sec. 1
2. First Aid Treatment, Art. 156
3. Emergency Medical and Dental Services
a. When Required, Art. 157
b. When Not Required, Art. 158
4. Employer assistance, Art. 161
5. Occupational Safety and Health Standards, Training of
Supervisor/Technician
a. When Required, Rule II, Secs. 5 (a) (d)
b. When Not Required, Rule II, Sec. 5 (e)
6. Enforcement/DOLE Obligations, Arts. 162-165
Note: Arts. 166-208: repealed by SSS Law of 1997 (RA 1161, as amended); Re: Art.
209, see National Health Insurance act of 1995 (RA 7875); Book IV, Rule II, Sec. 8
L. Employee Classification
1. Coverage, Art. 278
2. Employer Recognition
3. Employer Determination/Designation
4. Management Prerogative
27
5. Kinds of Employee
a. Regular Employees, art. 280, 1st par.; 280, 2nd par.; 281, last sentence; 75(d);
Omnibus rules, Book VI, Rule 1, Secs. 5(a), (b) and 6.
1) Type
2) Nature of Work
Perpetual Help Credit Corp., Inc. v. Faburada, et al., 366 SCRA 693
( 2001)
Hacienda Fatima v. National Federation of Sugarcane Workers Food and
General Trade, 396 SCRA 518 (2003)
Pentagon International Shipping, Inc. v. Adelantar, 435 SCRA 342 (2004)
Lopez v. Metropolitan Waterworks and Sewerage System, 462 SCRA 428
(2005)
3) Extended Period
2) Project Employees
3) Workpool Employees
c.
Casual, Art. 280, 2nd par.; Omnibus rules, Book VI, Rule 1, Sec. 5 (b)
1) Nature of Work
A.M. Oreta and Co. Inc. v. NLRC, 176 SCRA 218 (1989)
28
d. Fixed-Term
e. Seasonal
f.
Probationary
1) Definition
3) Duration/Exception
4) Criteria Regularization
5) Extension of Contract
6) Absorbed Employees
I.
Termination of Employment
1. Coverage, Art. 278; Book VI, Rule 1, Sec. 1
29
2. Security of Tenure, Art 279; 277 (b)
a. Nature/Rationale
b. Coverage
c.
Management Prerogative
The Philippine American Life & General Insurance Co. v. Gramaje, 442 SCRA
274 (2004)
Duncan Association of Detailman-PTGWO v. Glxo Wellcome Philippines, Inc.,
438 SCRA 343
b. Performance of Military or Civic duty, Art. 286, Book VI, Rule I, Sec. 12
4. Termination of Employment by Employer
a. Basis of Right and Requirements, Arts. 282-284; 277 (b)
1) Basis
30
b) Courtesy Resignation
c) Change of Ownership
d) Habitual Absenteeism
31
e) Fixed-Term Employment
f)
Past offenses
g) Immorality
h) Conviction of Crime
i)
Qualification Requirements
7) Constructive Dismissal
8) Transfer
OSS Security & Allied Services Inc. v. NLRC, 325 SCRA 157 (2000)
Lanzaderas v. Amethyst Security and General Services, Inc., supra
Mendoza v, Rural Bank of Lucban, 433 SCRA 756 (2004)
9) Promotion
Phil. Telegraph & Telephone Corp. v. Court of Appeals, 412 SCRA 263
(2003)
c.
32
d. Procedural Requirements, Art. 277 (b); Book VI, Rule I, Secs. 1-3 Omnibus Rules
1) In General/Liability for Non-Compliance with Procedural Requirements
2) Right to Counsel
3) Notice
4) Hearing
a) Hearing
33
5) Burden of Proof
Philtread Tire & Rubber Corp. v. Vicente, 441 SCRA 574 (2004)
Etcuban v. Sulpicio Lines, Inc., supra
8) Prescription
9) Criminal Cases
1) Reinstatement
a) Definition
c) Exceptions
i)
Closure of Business
ii)
34
d) Offer to Reinstate
2) Backwages
a) Effect of Failure to Claim
b) Computation
c) Fringe Benefit
b. Damages
c.
Separation Pay
1) When As Alternative
35
2) Computation/Rationale
3) Effect of Acceptance
d) Financial Assistance
1) When Allowed
e. Indemnity
f.
J. Retirement, Art. 287; Book VI, Rule II, Omnibus Rules; RA No. 7641; RA No. 8558
(1998); Labor Advisory on Retirement Pay (Oct. 1999)
1. Retirement
a. Types of Retirement Plan
1) Basis
2) Interpretation
36
4) Eligibility
2. Accrual of Benefits
REMINDERS:
1.
2.
3.
4.
REQUIREMENT:
Recitation/Assigned Work
Mid-Term Examination
Final Examination
30%
-
30%
40%