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Constitutional Mandates on
Labor, Labor Law
Labor Legislation, Social

As an act: Exertion by human beings of
physical or mental efforts, or both, towards
the production of goods and services.
As a sector of society: That sector or group in
a society, which derives its livelihood chiefly
from rendition of work or services in
exchange for compensation under managerial
direction (Mendoza, 2001).
Refers to workers, whether agricultural or

Art.The State shall protect and promote the interests of the Filipino Laborer: Art. promote full employment. It shall protect the rights. 18. II. II. a rising standard of living and improved quality of life for all. Sec. . 9. The State affirms labor as a primary social economic force. Sec. of workers and promote their welfare. 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.

Sec. 12. review to upgrade the pensions and other benefits due to retirees of both the government and the private sectors. Art. taking into account their maternal functions. The State shall protect women by providing safe and healthful working conditions. Art XIII. Sec. and adopt measures that help make them competitive. XV. The State shall. . Sec. and such facilities and opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation.The State shall protect and promote the interests of the Filipino Laborer: Art. domestic materials and locally produced goods. 8. from time to time. 14. XII. The State shall promote the preferential use of Filipino labor.

shall not be abridged. 8. Ill. associations. to form unions. including those employed in the public and private sectors. . (formation of labor organizations) Art. No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted. Sec.Rights of Workers Art. Sec. 18(2). or societies for purposes not contrary to law. The right of the people. Ill.

humane conditions of work.Protection to Labor Clause Art. . It shall guarantee the rights of all workers to selforganization. 3 The State shall afford full protection to labor. and a living wage. and peaceful concerted activities. including the right to strike in accordance with law. XIII. collective bargaining and negotiations. and promote full employment and equality of employment opportunities for all. local and overseas. Sec. They shall be entitled to security of tenure. They shall also participate in policy and decision-making process affecting their rights and benefits as may be provided by law. organized and unorganized.

Protection to Labor Clause Art. recognizing the right of labor to its just share in the fruits of production' and the right of enterprises to reasonable returns of investments. and to expansion and growth. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes. 3 . Sec. including conciliation. . cont. and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers. XIII.

Share in the fruits of production. Participation in policy and decision-making processes. Under Labor Relations Self-Organization Collective bargaining and negotiations Peaceful concerted activities.Defines rights of workers under Labor Standards and Labor Relations: Under Labor Standards Security of Tenure. . and Humane conditions of work. including strike. Living wage.

disability.Laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice.Provides for the minimum economic security. adjusting and administering those standards and other incidents of employment. hence the need for Social Legislation. of loss of earnings due to death. dismissal. injury or disease.Statutes. Labor Legislation . of the worker and his family in case. old age. Welfare Legislation . .Constitutional provisions on labor are not self-executory. regulations and jurisprudence governing the relations between capital and labor. It provides for certain employment standards and a legal framework for negotiating. Labor Legislation and Welfare Legislation Social Legislation .

thus is broader in scope than the latter. . All labor laws are social legislations but not all social legislations are labor laws.Labor Legislation Social Legislation Effect to Employment Directly affects employment Governs the effects of employment Purpose Designed to meet the daily needs of workers Involves long range benefits Coverage Covers employment for profit or gain Covers employment for profit and non-profit Effect to Employee Affects work of employee Affects life of employee Payor Benefits are paid by the worker’s employer Benefits are paid by government agencies Social legislation encompasses labor legislation.

Labor Standards Law deals with the minimum standards as to wages. rights and duties as well as the institutional mechanisms that govern the individual and collective interactions between employers. . employees and their representatives.The law governing the rights and duties of employers and employees with respect to Labor Standards and Labor Relations. hours of work and other terms and conditions of employment that employers must provide their employees. Labor Relations Law defines the status.

f. i. g. 8042. d. e. GSIS Law. No.A. 1974 Special Laws: a. j. Limited Portability Law (RA 7699) National Health Insurance Act Paternity Leave Act Retirement Pay Law Home Mutual Development Fund Law Anti-Sexual Harassment Act Anti-Child Labor Act 13th Month Pay Law Migrant Workers and Overseas Filipinos Act of 1995 (R. as amended by RA 10151) Expanded Comprehensive Agrarian Reform Law Magna Carta for Public Health Workers . c.Presidential Decree No. h. b. k. 442 Deals with Labor Standards and Labor Relations Became effective November 1. Laws on Social Security (SSS Law.

Art. b. They are so impressed with public interest that labor contracts must yield to the common good. 1702. or impair the interest or convenience of the public. 1701. Art. . collective bargaining. In case of doubt. shall be valid. hours of labor and similar subjects.Labor-related provisions in Other Laws Civil Code a. 1703. working conditions. strikes and lockouts. closed shop. c. Art. under any guise whatsoever. d. The relation between capital and labor are not merely contractual. such contracts are subject to the special laws on labor unions. Art. 1700. wages. Neither capital nor labor shall act oppressively against the other. Therefore. all labor legislations and all labor contracts shall be construed in favor of the safety and decent living for the laborer. No contract which practically amounts to involuntary servitude.

maintenance and prohibition of combination of capital or labor through violence or threats. maintaining or preventing coalitions of capital or labor. 289. for the purpose of organizing. — The penalty of arresto mayor and a fine not exceeding 300 pesos shall be imposed upon any person who.Labor-related provisions in Other Laws Revised Penal Code a. strike of laborers or lock-out of employees. if the act shall not constitute a more serious offense in accordance with the provisions of this Code. Art. Formation. shall employ violence or threats in such a degree as to compel or force the laborers or employers in the free and legal exercise of their industry or work. .

The need for employment by labor comes from vital. Those who have less in life should have more in law. and even desperate necessity (survival).Attainment of Social Justice Balance the interest of labor and capital (eliminate oppression) Labor is afforded a greater measure of protection There is greater supply of labor than demand for their services. .

Preliminary Discussions on the Labor Code .

Labor Code). 3. hence employment contracts are not ordinary contracts (Art. Sec. regulate the relations of employers and employees. 1700. . 3. and assure workers rights (refer to protection to labor clause Art. NCC). The relation of capital and labor are impressed with public interest. 1987 Const.The state shall afford full protection to labor. & Art. XIII. promote full employment. equal work opportunities without bias or discrimination.

2007). March 7. Civil Code) IF THERE IS DOUBT as to the meaning of the legal and contractual provision. 162053. July 12. Labor Code. IF THE PROVISION IS CLEAR AND UNAMBIGUOUS. GR No. The law also recognizes that management has rights which are also entitled to respect and enforcement in the interest of fair play (St. (Meralco v. NLRC. labor laws and rules are to be construed in favor of labor (Art. v. 4.In case of doubt or ambiguity. it must be applied in accordance with its express terms. . GR No. 1989). NLRC. Art. 1702. Luke's Medical Center Employee's Assoc. 78763. the above-mentioned applies.

. There is greater supply than demand for labor. and The need for employment by labor comes from vital. GR No. L-2779. Those who have less in life should have more in law. 1950). (Sanchez v. October 18.Comes from acknowledgement that capital wields more power than labor. Harry Lyons Construction Inc. and even desperate necessity (survival) .

2. 4. the Regular Courts pursuant to the Securities Regulation Code. International Agencies. Exceptions: 1. Government employees. 3. whether agricultural or non-agricultural. employees of intergovernmental or international organizations. Corporate officers/Intra-corporate disputes which fall under PD 902-A and now fall under the jurisdiction of. 5. including employees in a government corporation incorporated under the corporation code. Foreign governments. Local water districts except where NLRC jurisdiction is invoked. . Employees of government Corporations created by special or original charter.General Rule: The Code applies to all workers. and 6.

Law recognizes management rights. Select and hire employees. and Return of investment and expansion of business. The employer has the right to Conduct business. Transfer or discharge employees. . Discipline of employees. Prescribe rules.

all aspects of employment. Under the doctrine of management prerogative. transfer of employees. lay-off of workers. 2004). working methods. including hiring. February 27.(Rural Bank of Cantilan . Rural Bank of Lucban. according to his own discretion and judgment. dismissal. v. and discipline. and recall of employees (Mendoza v. 169750. work" assignments. 155421. GR No. work supervision. every employer has the inherent right to regulate. Julve. contract or collective bargaining agreements and general principles of fair play and justice . July 7. however. 2007). are subject to limitations provided by law. the time. GR No. place and manner of work. Management prerogatives.

Preliminary Discussions on the Labor Code .

Facilitate a free choice of available employment by persons seeking work in conformity with the national interest. Protect every citizen by securing for him the best possible terms and condition of employment.Article 12. . allocation and utilization. Labor Code Promote and maintain a state of full employment through improved manpower training. Facilitate and regulate the movement of workers in conformity with the national interest.

including the establishment of a registration and/or permit system. . and Insure careful selection of Filipino workers for overseas employment in order to protect the good name of the Philippines abroad.Article 12. locally and overseas to serve national development objectives. Strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of workers. Labor Code Regulate the employment of aliens.

hiring. in any manner. That any person or entity which.Article 13(b) of the Labor Code. enlisting. Provided. contract services. offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. locally or abroad. transporting. promising or advertising for employment.” . defines “recruitment and placement” as “… any act of canvassing. and includes referrals. or procuring workers. utilizing. contracting. whether for profit or not.

Public employment offices.corps ("but hiring must also go through POEA). Construction contractors if authorized by the DOLE and the Construction Industry Authority Members of the diplomatic. Other persons or entities as may be authorized by the DOLE Secretary. POEA. Private (fee-charging) employment agencies. LC) . Shipping or manning agents or representatives. Direct Hiring for overseas employment is not allowed (Article 18. and Name hirees. Private recruitment entities.

worker or otherwise. Feb. is engaged or has been engaged in a remunerated activity in a state of which he or she is not a citizen or on board a vessel navigating the foreign seas other than a government ship used for military or non-commercial purposes or on an installation located offshore or on the high seas.employment of a worker outside the Philippines covered by a valid contract. Overseas Employment .any person employed in a vessel engaged in maritime navigation. to be used interchangeably with migrant worker. 4. who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination.Overseas Filipino Worker –a person who is to be engaged. (RA 8042 as amended by RA 10022) Seaman . 2002). Note: A person to be engaged in a remunerated activity refers to an applicant worker who has been promised or assured of employment overseas and acting on such promise or assurance sustains damage and/or injury. . Emigrant – any person. (POEA Rules and Regulations Governing the Recruitment and Employment of Land Based Overseas Workers.

implementation. and monitoring of overseas employment of Filipino workers. Protection of worker rights to fair and equitable employment practices Deployment of Filipino workers through government-to-government hiring. .Philippine Overseas Employment Administration assumes functions of OEDB & NSB Principal Functions: Formulation.

Salient Regulatory Functions Regulate private sector participation in the recruitment and overseas placement of workers. Formulate and implement a system for promoting and monitoring the overseas employment of Filipino workers. Inform migrant workers of their rights as workers and also as human beings. . considering worker welfare and the domestic manpower requirements.

Service the requirements for trained and competent Filipino workers of foreign governments and their instrumentalities.Salient Regulatory Functions Instruct and guide the workers how to assert their rights and provide the available mechanism to redress violation of their rights. . and such other employers as public interest may require.

Deployment of workers shall be sanctioned by the POEA only - Where the Philippines has concluded Bilateral labor agreements or arrangements. . Where there is a guarantee from the accommodating state to protect the rights of Filipino migrant workers. When an accommodating state observes and/or complies with the international laws and standards for migrant workers.

. contracting partners and Filipino migrant workers. 79436-50. principals. v.Adjudicatory Functions Administrative cases involving violations of licensing rules and regulations and registration of recruitment and employment agencies or entities. GR Nos. POEA has the power to: Suspend or cancel license. involving employers. January 17. 1990) Disciplinary action cases and other special cases which are administrative in character. of Labor. and Order the refund or reimbursement of such illegally collected fees (Eastern Assurance and Surety Corp. Sec.

G. Inter-Agency Committee for Implementation of E. and Immigrants and Filipino professionals and employees working with United Nations agencies or specialized bodies (Resolution No. .S. dependents. Where the worker's immediate family members.Mandatory Remittance (Article 22) Exceptions Filipino servicemen working in U. 857). military Installations. 1-83. or beneficiaries are residing with him abroad.

without prejudice to other liabilities under existing laws and regulations . Private employment agencies or entities shall face cancellation or revocation of their licenses or authority to recruit.Worker shall be suspended or excluded from the list of eligible workers for overseas employment. Employers who fail to comply shall be excluded from the overseas employment program. Subsequent violations shall warrant his repatriation.

. Art. or Corporations. LC: Filipino citizens.Art. 27. 28. partnerships or entities at least 75% of the authorized and voting capital stock of which is owned and controlled by Filipino citizens. LC: Private employment agency for local employment For single proprietorship or partnership –minimum net worth of two (2) hundred thousand pesos. For corporations – a minimum paid up capital of five (5) hundred thousand pesos.

.Art. LC: Private recruitment or manning agency for overseas employment For single proprietorship or partnership – minimum capitalization of two (2) million pesos. For corporations –minimum paid up capital of two (2) million pesos. increase capitalization or paid-up capital to two (2) million pesos at the rate of two hundred fifty thousand pesos (P250. Those not otherwise disqualified by law or other government regulations to engage in the recruitment and placement of workers for overseas employment. 28.000) every year.

LC). Travel agencies and sales agencies of airline companies (Art. . 26.Officials or employees of the DOLE or other government agencies directly involved in overseas employment program and their relatives within the 4th degree of consanguinity or affinity.

.Officers or members of the board of any corporation or members in a partnership engaged in the business of a travel agency. or partner of a corporation or partnership engaged in the business of a travel agency (interlocking officers). members of the board. when any of its officers. is also an officer. Corporations and partnerships. or partners. member of the board.

2002 Rules and Regulations on the Recruitment and Employment of Land-Based Workers).Persons. . Rule I. partnerships or corporations which have derogatory records Those whose Licenses have been previously cancelled or revoked (Sec. 2.

Used only by the person or entity in whose favor it was issued.ART. Provincial recruitment and/or job fairs may be allowed only when authorized by POEA in writing. Used only in the Place stated in the license. . Labor Code. . Recruitment and placement must be undertaken at their authorized official addresses. 29.

. including escrow deposits.All applicants for license or authority shall post such cash and surety bonds as determined by the Secretary of Labor. . and terms and conditions of employment. rules and regulations.ART. 31: BONDS Purpose of Bond: To guarantee compliance with prescribed recruitment procedures.

The surety bond required of recruitment agencies is intended for the protection of our citizens who are engaged for overseas employment by foreign companies. recourse would still be available to them against the local companies that recruited them for the foreign principal.R. January 30. CA and ADRIANO URTESUELA. No. 88050. (STRONGHOLD INSURANCE COMPANY. The foreign principal is outside the jurisdiction of our courts and would probably have no properties in this country against which an adverse judgment can be enforced. vs. This difficulty is corrected by the bond. 1992) . G. which can be proceeded against to satisfy that judgment. INC. The purpose is to insure that if the rights of these overseas workers are violated by their employers.

. Failure to replenish the same within the said period shall cause the suspension of the license (Sec. Should the bond/deposit in escrow or any part thereof be garnished. Book II. the same should be replenished by the agency within 15 days from notice from the POEA. POEA has the power to enforce liability under cash or surety bonds. 22.Exemption from Garnishment Cash bond filed by applicants for license or authority is not subject to garnishment by a judgment creditor of the agency. Rule II. Rules and Regulations on the Recruitment and Employment of Land-based Workers).

77297. Book I. Implementing Regulations of LC). 1988). The recruitment agency may still be sued even if agency agreement between recruitment agency and principal is already severed if no notice of the termination was given to the employee based on Art.The recruitment agency is SOLIDARILY LIABLE with the foreign principal for unpaid salaries of a worker it recruited. 10. . and the contracts of employment (Sec. NLRC. April 15. the agency is required to submit a document containing its power to sue and be sued jointly and solidarily with the principal or foreignbased employer for any of the violations of the recruitment agreement. 1921 of the New Civil Code (Catan v. Rule V. Before recruiting. GR No.

Exemption: Where the workers themselves insisted for the recruitment agency to send them back to their foreign employer despite their knowledge of its inability to pay their wages. Gayda. . GR No. Balatongan. 1989). the Court absolved the agency from liability (Feagle Construction Corp. v. Contract by Principal: Even if it was the principal of the manning agency who entered into contract with the employee. June 18. GR Nos. February 28. 82310. v. 83635-53. 1990). the manning agent in the Philippines is jointly and solidarily liable with the principal (Seagull Maritime Corp.

79436-50. January 17. All fees paid shall be covered with appropriate receipt. Sec. GR Nos. POEA’s authority Suspend or cancel license. and Order the refund or reimbursement of such illegally collected fees (Eastern Assurance and Surety Corp. 1990). v. .ART. of Labor. LC Charging of fees only after employment obtained or actual commencement of employment. 32.

Placement fees cannot be collected from a hired worker until he has signed the employment contract and shall be covered by receipts clearly showing the amount paid (Sec. Rule V. No other fees or charges including processing fees shall be imposed against any worker. Rules and Regulations Governing Overseas Employment). . Book II. 2[a]. Manning agencies shall not charge any fee from seafarer-applicants for its recruitment and placement services.

Give any false notice. 4. Furnish any false information in relation to recruitment or employment. or commit any act of misrepresentation to secure a license or authority. 3. . 5. Influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency.1. Charge greater amount than that specified in the schedule of allowable fees. testimony etc. 2. Induce or attempt to induce a worker to quit his job in lieu of another offer unless it is designed to liberate the worker from oppressive terms of employment.

10.6. . 8. and such other matters as may be required by the SOLE. Fail to file reports. Become an officer or member of the Board of any corporation engaged in the management of a travel agency. Withhold travel documents from applicant workers before departure for unauthorized monetary considerations. Obstruct or attempt to obstruct inspection by the Labor Secretary or his authorized representatives. 9. on the status of employment. morality or to the dignity of the Philippines. 7. Substitute or alter employment contracts without the approval of the Secretary of Labor. Engage in recruitment or placement of jobs harmful to public health. placement etc. 11.

and Advertisements (job announcements) without POEA's prior approval (Sec. POEA Rules). 34). . Rule II.4. Charging a fee before the worker is employed or in excess of the authorized amount.Suspension or Cancellation Prohibited acts (Art. Deploying workers without processing through the POEA. Book IV. Recruitment activities in places outside the authorized area.

Book VI. Rules and Regulations Governing Overseas Employment).3. Engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof. and Engaging in the recruitment or placement of workers to jobs harmful to the public health or morality or to the dignity of the Republic of the Philippines (Sec. Violation of the conditions of license. Rule I.Grounds for Revocation of License (IVEE) Accumulated three counts of suspension by an agency based on final and executory orders within the validity period of its license. .

transporting. that any such non-licensee or non-holder who. . Provided. when undertaken by a non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442. contracting. contract services. promising or advertising for employment abroad. whether for profit or not. hiring. offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. as amended. whether a non-licensee. LC. whether committed by any person.Any act of canvassing. utilizing. nonholder. or procuring workers and includes referring. Includes prohibited acts under Article 34. enlisting. otherwise known as the Labor Code of the Philippines. licensee or holder of authority. in any manner.

and Recruitment and placement activities of agents or representatives appointed by a licensee. in cases where the deployment does not actually take place without the worker's fault. Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment.Other Acts of Illegal Recruitment Failure to actually deploy without valid reason as determined by DOLE. . whose appointments were not previously authorized by the POEA.

and The offender undertakes either any recruitment activities defined under Article 13 (b).A. 10. May 15. 1998. 107084. 2. 8042). R. Sadiosa. 34 (People v. or any prohibited practices enumerated under Art. GR No. The offender is a licensee/non-licensee or holder/non-holder of authority engaged in the recruitment and placement of workers. .1. Sec.

i. September 27.. 1996). 39[e]. GR Nos. Persons convicted will suffer the following sanctions Automatic revocation of the license or authority (Art. if it is carried out by three (3) or more persons conspiring and/or confederating with one another.e. and Conviction of the crime of estafa. i. 115150-55. if found guilty thereof (People v. Calonzo.Qualifying Circumstances When illegal recruitment is committed by a SYNDICATE. or When illegal recruitment is committed in a LARGE SCALE. LC). 39[e].e.. LC). if it is committed against three (3) or more persons individually or as a group. . Forfeiture of the cash and surety bonds (Art.

000-P500.000 P500.Because of distinctions as to: Prescriptive Period Penalties Prescriptive Period Imprisonment Simple Economic Sabotage 5 Years 20 Years reclusion temporal Prision mayor Life imprisonment 2M Fine P200.000-P1M 5M .

RTC Br. . b) the offender undertakes any of the activities within the meaning of “recruitment and placement” under Article 13(b) of the Labor Code. Baguio City three elements of illegal recruitment in large scale a) the offender has no valid license or authority required by law to enable him to lawfully engage in recruitment and placement of workers. and c) the offender committed the same against three or more persons. 8042). or any of the prohibited practices enumerated under Article 34 of the said Code (now Section 6 of Republic Act No. are present in this case. individually or as a group. 60.

the complainants paid placement fees to the appellant who failed to secure the promised overseas jobs. . and that damage or prejudice capable of pecuniary estimation is caused to the offended party or third person.The two elements of estafa – that the accused defrauded another by abuse of confidence or by means of deceit. The prosecution evidence duly proved that due to the appellant’s false representations of overseas jobs.

.An Alien Employment Permit is a document issued by the Department of Labor and Employment which authorizes a foreign national to work in the Philippines.

Permit required for entry of aliens into the country for employment purposes. Instead. able and willing at the time of the application to perform the services for which the alien is desired. Immigrants and resident aliens are not required to secure a working permit. including: All foreign nationals seeking admission to the Philippines for the purpose of employment All NON-RESIDENT foreign nationals already working in the Philippines. they need to secure an Alien Employment Registration Certificate (AERC) . subject to Non-availability of any person in the Philippines who is competent.

Holders of Special Investors Resident Visa (SIRV). Treaty Traders Visa (9d) or Special Non-Immigrant Visa (47(a)2) for as long as they occupy any executive. supervisory.Non-resident foreign nationals admitted to the Philippines on non-working visas and who wish to seek employment. advisory. . Special Retirees Resident Visa (SRRV). or technical position in any establishment. and Missionaries of religious workers who intend to engage in gainful employment Foreign professionals who are allowed to practice their profession in the Philippines under reciprocity and other international agreements and in consultancy services pursuant to Section 7(j) of the PRC Modernization Act of 2000.

Determination of the DOLE Secretary that there is no available Filipino national who is competent.Basis for issuance Compliance by the applicant or employer or the foreign national with the substantive and documentary requirements. able and willing to do the job for the employer. Assessment of the DOLE Secretary that the employment of the foreign national will redound to national benefit. .

but have only voting rights in the corporation. Officers and staff of international organizations of which the Philippines is a cooperating member. and their legitimate spouses desiring to work in the Philippines. Foreign nationals elected as members of the Governing Board who do not occupy any other position. .All members of diplomatic service and foreign government officials accredited by and with reciprocity arrangement with the Philippine government.

Foreign nationals who come to the Philippines to teach. exchange or adjunct professors under formal agreements between the universities or colleges in the Philippines and foreign universities or colleges.All foreign nationals granted exemption by law. present and/or conduct Foreign nationals who come to the Philippines to teach. present and/or conduct research studies in universities and colleges as visiting. or between the Philippine government and foreign government. . provided that the exemption is on a reciprocal basis.

Owners and representatives of foreign nationals
whose companies are accredited by the POEA
who come to the Philippines for a limited period
and solely for the purpose of interviewing
Filipino applicants for employment abroad;
Resident foreign nationals and temporary or
probationary resident visa holders employed or
seeking employment in the Philippines.

One year or
Co-terminus with the duration of employment,
consultancy services or other modes of
employment or term of office, which in no case
shall exceed five years. Said AEP is valid for the
position/s and company for which it was issued.
In case of assignment in the company’s
subsidiaries, branch offices and joint ventures
and those assigned in the headquarters with
oversight function in any of the branch offices,
operation or projects in the country, one AEP
shall be required and valid for all the said
assignments irrespective of their place/s.

Misrepresentation of facts in the
Submission of falsified documents;
Derogatory record of foreign national;
Availability of a Filipino who is competent,
able and willing to do the job intended for
the foreign national.

The continued stay of the foreign national
may result in damage to the interest of the
industry or the country;
The employment of the foreign national is
suspended by the employer or by order of
the Court.

Foreign national has a derogatory record. . Meritorious objection or information against the employment of the foreign national as determined by the Regional Director. Misrepresentation of facts in the application.Non-compliance with any of the requirements or conditions for which the AEP was issued. Submission of falsified or tampered documents. or Employer terminated the employment of the foreign national.

If a foreign national is found to have worked without or with expired AEP prior to application. .00) shall be imposed for working without an AEP for one (1) year or fraction thereof.Appeal maybe filed by any aggrieved party with the Secretary of Labor and Employment within 10 days after receipt of the Order of denial/cancellation or revocation. a penalty of Ten Thousand Pesos (P10.000.

The TESDA Training and Development of Special Workers .

Statement of Goals and Objectives a. d. To disseminate scientific and technical knowledge base. .Read Articles 43-56. To attain international competitiveness. c. and To inculcate desirable values. e. b.A 7796 and replaced the NMYC. To recognize and encourage the complementary roles of public and private institutions. To meet demands for quality middle-level manpower. Labor Code The Technical Education and Skills Development Authority (TESDA) was created under R.

Skilled workers who have become highly competent in their trade or craft as attested by industry. .refers to those: Who have acquired practical skills and knowledge through formal or non-formal education and training equivalent to at least a secondary education but preferably a post-secondary education with a corresponding degree or diploma.

and To establish apprenticeship standards for the protection of apprentices. .Types of Special Workers Apprentice Learner Handicapped Objectives for Training and Employment To help meet the demand of the economy for trained manpower. To establish a national apprenticeship program.

for a highly skilled or technical occupation for a period of not less than three months but not more than six months.Apprenticeship . Apprenticeable Occupation .a worker who is covered by a written apprenticeship agreement with an individual employer or any of the entities recognized under this chapter. form of employment or occupation which requires more than 3 months of practical training on the job supplemented by related theoretical instruction. with an apprenticeship program duly approved by the DOLE.practical training on the job supplemented by related theoretical instruction. . Apprentice .any trade.

enterprise. . industry or other activity which is engaged in the application of advanced technology. business. On-the-job-training – practical work experience through actual participation in productive activities given to or acquired by an apprentice.Apprenticeship Agreement – an employment contract wherein the employer binds himself to train the apprentice and the apprentice in turn accepts the terms of training. Highly Technical Industries – a trade.

12. Physically fit for the occupation in which he desires to be trained. . provided that if below 18 years. RA 7610). and Possess the ability to comprehend and follow oral and written instructions.At least 15 years of age (as amended by Sec. he shall not be eligible for hazardous occupations. Possess vocational aptitude and capacity for the particular occupation as established through appropriate tests.

Rule VI. (Sec 13. Book II. Rules implementing the Labor Code) . Only physical defects which constitute real impediments to effective performance as determined by the plant apprenticeship^ committee may disqualify an applicant.Total physical fitness is not required of an apprentice-applicant unless it is essential to the expeditious and effective learning of the occupation.

Rule VI.Employer may employ apprentices when They are classified as highly technical industries. Requisites for a Valid Apprenticeship Qualified under Article 59. and The task to be performed is an apprenticeable occupation as determined by the Secretary of Labor. Rule VI. 1995). . and Period of apprenticeship shall not exceed six (6) months (Sec. Apprentice earns not less than 75% of the prescribed minimum salary. Apprenticeship program must be approved by the Secretary of Labor. September 29. 19. Rules Implementing the Labor Code) Apprenticeship agreement duly executed and signed. Rules Implementing the Labor Code). 114337. NLRC. otherwise. (Sec 13. the apprentice shall be deemed a regular employee (Nitto Enterprises v. Book II. GR No. Book II.

. Name of trade. Date of birth of the apprentice. occupation or job in which the apprentice shall be trained and the dates on which such training will begin and will proximately end. Approximate number of hours of on-the-job training with compulsory theoretical instructions which the apprentice shall undergo during his training.Content Full name and address of the contracting parties.

Rules Implementing the Labor Code). Probationary period of the apprentice during which either party may summarily terminate their agreement. and An Apprenticeship Transfer Clause (Sec. 18. Graduated scale of wages to be paid to the apprentice. . Rule VI. Book II.Content Schedule of the work processes of the trade/ occupation in which the apprentice shall be trained & the approximate time to be spent on the job in each process.

establishment or entity. OR Within a DOLE training center or other public training institutions. OR Initial training in trade fundamentals in a training center or other institutions with subsequent actual work participation within the sponsoring firm or entity during the final stage of training. .Within the sponsoring firm.

Action may be initiated upon complaint of any interested person or upon DOLE'S own initiative.Investigation of Violation of Apprenticeship Agreement (Art. . 65) Either party to an agreement may terminate the same after the probationary period only for a valid cause.

Poor efficiency or performance on the job or in the classroom for a prolonged period despite warnings duly given to the apprentice. and Engaging in violence or other forms of gross misconduct inside the employer's premises. permanent disability or prolonged illness which incapacitates the apprentice from working. .By the employer Habitual absenteeism in on-the-job training and related theoretical instructions. Willful disobedience of company rules or insubordination to lawful order of a superior: Poor physical condition. Theft or malicious destruction of company property and/or equipment.

Rule VI. Cruel or inhumane treatment by the employer or his subordinates. Rules Implementing the Labor Code) . and Bad health or continuing illness. Book II.By the apprentice Substandard or deleterious working conditions within the employer's premises: Repeated violations by the employer of the terms of the apprenticeship agreement. (Sec 25. Personal problems which in the opinion of the apprentice shall prevent him from a satisfactory performance of his job.

Rule VI. The plant apprenticeship committee shall have initial responsibility for settling differences arising out of apprenticeship agreements (Sec. . 66) The decision of an authorized agency of the Department of Labor may be appealed to the Secretary of Labor. within 5 days from receipt of the adverse decision.Appeal (Art. Book II. Rules Implementing the Labor Code). Exhaustion of Administrative Remedies (Art. The decision of the Secretary of Labor shall be final and executory. 32b. 67) The exhaustion of administrative remedies is a condition precedent to the institution of action.

72) When grave national emergencies. Exceptions: (Art. (Sec. Rule VI. Rules Implementing the Labor Code) . except as provided for in Article 72. the Secretary of Labor and Employment may recommend to the President of the Philippines the compulsory training of apprentices required in certain trades. Where services of foreign technicians are utilized by private companies in apprenticeable trades said companies are required to set up appropriate apprenticeship programs. arise or particular requirements of economic development so demand. or employment levels where shortage of trained manpower is deemed critical. occupations.ART. 70: The organization of apprenticeship program shall be primarily a voluntary undertaking of employers. jobs. 41. particularly those involving the security of the state. Book II.

and Employer must pay his apprentices the minimum wage. provided Apprenticeship program must be duly recognized by the Department of Labor. Deduction shall not exceed 10% of direct labor wage. .An additional deduction from taxable income of 1/2 of the value of labor training expenses incurred for developing the productivity and efficiency of apprentices are granted to the person or enterprise organizing an apprenticeship program.

Required by the training program Curriculum.Required by the school. Rules Implementing the Labor Code) . (Sec. Rule VI. or A requisite for board examination. Book II. A requisite for graduation. 40.

IAC. 75112. GR No. 2180 of the Civil Code (Filamer Christian Institute v. But if he causes injury or damage to a third person. 1992). provided the students are given real opportunities.Rules on Working Scholar There is NO employer-employee relationship where there is agreement between them The agreement shows that the student/scholar agrees to work for the college/university in exchange for the privilege to study free of charge. . the school may be held liable under Art. including such facilities as may be reasonable and necessary to finish their chosen courses under such agreement The student/scholar is not considered an employee. August 17.

To foist upon them the second apprenticeship agreement for a second skill which was not even mentioned in the agreement itself. Aprilito R. the employer. . No.R. 187320. Inc. recognized the completion of their training and their acquisition of a regular employee status. These were defective as they were executed in violation of the law and the rules. neither was the apprenticeship program approved by the Technical Education and Skills Development Authority (TESDA). 2011. and/or Robert Chan vs. to all intents and purposes. et al. is a violation of the Labor Code’s implementing rules and is an act manifestly unfair to the employees. with the expiration of the first agreement and the retention of the employees. Jan. Sebolino. Moreover. The apprenticeship agreements did not indicate the trade or occupation in which the apprentice would be trained.. G.Atlanta Industries.

persons hired as trainees in which are non-apprenticeable and which may be learned through practical training on the job in a relatively short period of time which shall not exceed 3 months.employment and training contract entered into between the employer and the learner. Learnership Agreement .Learners . No requirement for theoretical instruction .

. Employment of minors as learners A minor below fifteen (15) years of age shall not be eligible for employment as a learner. The employment of learners being necessary to prevent curtailment of employment opportunities. Those below eighteen (18) years of age may only be employed in non-hazardous occupations. and The employment will neither create unfair competition in terms of labor costs nor impair working standards.No experienced workers are available.

if he so desires.It shall include: The names and addresses of the employer and the learner. A learner who has worked during the first two months shall be deemed a regular employee if training is terminated by the employer before the end of the stipulated period through no fault of the learner . The wage of learner which shall be at least 75% of the applicable minimum wage. The occupation to be learned and the duration of the training period which shall not exceed three (3) months. and A commitment to employ the learner. as a regular employee upon completion of training.

Apprenticeship Duration Not less than 3 months practical training on the job but not more than 6 months Learnership Practical training on the job not to exceed 3 months Concept Practical training on the job supplemented by related theoretical instruction Hiring of persons as trainees in semi-skilled and other industrial occupations which are non-apprenticeable and which may be learned through practical training on the job in a relatively short period of time ER’s Commitment to Hire With a commitment to employ the learner as regular employee if he desires upon completion of learnership No commitment to hire Effect of Pretermination Worker is not considered an employee Learner is considered regular employee after 2 months of training and dismissal is without fault of learner Focus of Training Highly-skilled or technical industries and in industrial Semi-skilled/industrial occupation (nonoccupation apprentriceable) Approval Requires DOLE approval for validity Not required Exhaustion of Administrative in case of Breach of Contract Precondition for filing action Not required .

Employees Not Covered by Provisions on Working Conditions: Government Employees Managerial Employees Officers and members of a managerial staff Domestic Servants and Persons in the Personal Service of Another Workers Paid by Results Non-Agri Field Personnel Members of an employer’s Family .

Normal hours of work . .Eight hours per work day Work day – 24 consecutive-hour period which commences from the time the employee regularly starts to work Work week – a week consisting of 168 consecutive hours or 7 consecutive work days beginning at the same hour and on the same calendar day each calendar week.

. to change the working hours of its employees. Management has the prerogative. whenever exigencies of the service so require. provided there is no reduction in workers’ pay Payment of wages of part-time workers should be in proportion only to the hours worked.Reduction of eight-hour working day is not prohibited.

Allowed by the DOLE as it is more humane to keep workers employed rather than cause the outright termination of their services .Workdays may be reduced on account of losses where the losses sought to be prevented are caused by factors outside of the employer’s control.

as determined by DOLE .Six-day work week may be compressed to five days Subject to conditions imposed by the DOLE: Employees voluntarily agree to work extended hours No diminution in take-home pay and fringe benefits Value of benefits that will accrue to the employees is more than or at least commensurate with the overtime pay that is due them Work does not involve strenuous physical exertion and with rest periods Temporary arrangement only.

. in the absence of an agreement specifically providing that a reduction in the number of workdays will not adversely affect the remuneration of the employees.Effect of reduction of workdays on wages and allowances The employer may deduct the wages and living allowances corresponding to the days taken off from the work week.

All time during which an employee is required to be on duty or to be at the employer’s premises or to be at a prescribed workplace. and All time during which an employee is suffered or permitted to work .

if waiting is integral part of employee’s work. if work allows sleeping without interrupting or prejudicing work. or he is engaged by employer to wait Sleeping while on duty. or when there is an express agreement between employer and employee Employee is required to remain on call in the employer’s premises that he cannot use the time effectively and gainfully for his own purpose. .Coffee breaks and rest periods of short duration Waiting time.

lectures Must be sanctioned by employer to be compensable CBA Negotiations or grievance meeting . training.Traveling From home to work – not compensable Traveling that is all in a day’s work – compensable Travel away from home – compensable Seminars. meetings.

and leave premises provided he returns on time . except if employee is required to work while eating (even if employer pays for meal) If reduced to less than 20 minutes. considered as a break.One hour time off for regular meals Not compensable. compensable Employee may do anything he wants.

NSD is for work done at night. . OT: Work rendered after normal eight hours of work Distinctions: When the work of an employee falls at night time. OT is for work done beyond normal hours of work.NSD: 10% of employee’s regular wage for each hour of work performed between 10:00 PM and 6:00 AM the next day. the receipt of overtime pay shall not preclude the right to receive night differential pay.

Premium pay – additional compensation required by law for work performed within 8 hours on non-working days such as rest days and special days Overtime pay – additional compensation for work performed beyond eight hours Regular wage or basic salary means cash wage only without deduction for facilities provided by employer .

6) .5) (Article 93(c)) OT on regular holiday: Plus 30% of (BHRx2) (Article 94(b)) OT on rest day and regular holiday: Plus 30 of (BHR x 2.OT on ordinary day: Plus 25% of Basic Hourly Rate (BHR) OT on rest day or special day: Plus 30% of (BHRx1.3) (Article 93(a)) OT on rest day and special day: Plus 30% of (BHRx1.

he cannot be compelled to make up for his time deficiency by requiring him to render work for an additional one hour on another day. x x x .If an employee work for only 7 hours on any given day (under time assuming his regular working period is eight hours daily). Article 87 of the Labor Code. reads: Article 87. Undertime work on any particular day shall not be offset by overtime work on any other day. Undertime not offset by overtime.

Undertime is covered only by the regular hourly rate whereas overtime is subject to additional overtime rate. .Offsetting under-time against overtime would deprive the employee of the additional compensation for the overtime work he has rendered. the employee loses overtime pay to which he is entitled. If the two are to be offset.

Under the said article.As a general rule. . The exception to this rule is found in Article 89 of the Labor Code. employees may not be compelled to work in excess of eight hours or to render overtime work on any given day against his will. employees may be compelled to perform overtime work.

Country is at war or under any national or local emergency.. Necessary to prevent loss of life or property. in order to avoid serious loss or damage to the employer. Urgent work to be performed on machines. Completion or continuation of work is necessary to prevent serious obstruction or prejudice to the business. etc. or in case of imminent danger to public safety. Work is necessary to prevent loss or damage to perishable goods. . or Necessary to avail of favorable weather or environmental conditions.

G.R. vs.Article 82: The provisions of the Labor Code on working conditions and rest periods shall not apply to managerial employees. March 24. 101761. (Nat’l Sugar Refineries Corp. and hence are not entitled to overtime. This includes overtime pay for overtime work. Supervisory employees are considered as officers or members of the managerial staff (for purposes of LABOR STANDARDS). 1993). . rest day and holiday pay. No. NLRC.

Republic Act 9492 amended Section 26. Chapter 7. Book I of EO 292. declaring certain days (specific or movable) as special or regular holidays. RA 9849: Eidul Adha shall be celebrated as a national holiday. . also known as the Administrative Code of 1987.

November 30 Christmas Day – December 25 Rizal Day – December 30 Eid al Fitr – Movable Eid’l Adha – Movable .Regular Holidays New Year’s Day Maundy Thursday Good Friday Araw ng Kagitingan – April 9 Labor Day – May 1 Independence Day – June 12 National Heroes Day – Last Monday of August Bonifacio Day .

August 21 All Saints Day November 1 Last Day of the Year – December 31 Special Day (for all schools) EDSA Revolution Anniversary February 25 .Special (Non-Working) Days Ninoy Aquino Day .

The same is true for employees whose rest day falls on the day prior the holiday. Covered employees on leave with pay on the day prior to the holiday are entitled to holiday pay. This means that the employee is entitled to 100% of the daily wage rate.Every employer covered by the Holiday Pay Rule is entitled to his/her daily wage rate. . provided that the worker is present or is on leave with pay on the work day immediately preceding the holiday. even if the worker did not report for work.

Those who are on leave without pay or are absent on the day prior the holiday may not be paid the holiday pay if he did not work on the regular holiday. Work performed or rendered on the holiday itself entitles the employee to at least twice the latter’s daily rate. .

EXCEPT if he works on the first holiday. the employee who absents himself from work on the day immediately preceding the first holiday is not entitled to be paid for both holidays. or at least 260% In cases where there are two successive holidays (usually Maundy Thursday and Good Friday).Where the holiday falls on the scheduled rest day of the employee. work performed shall be paid at an additional 30% of the regular holiday rate. . in which case he is entitled to his holiday pay on the second holiday.

Performance of work is necessary for entitlement to premium pay. This is consistent with the definition above that premium pay is to be paid for work performed. no pay” applies. such as rest days and special days.Premium Pay Definition. No Pay” Rule. Workers who were not required or permitted to work on those days are not by law entitled to any compensation. . the principle of “no work. During rest and special days. additional compensation required by law to be paid to employees for work performed on non-working days. “No Work.

instead of 30% of the daily rate for special day. 50% of the regular daily rate is added. . whether it is a regular day or a holiday. where an employee is made or permitted to work on his scheduled rest day. The rule is different for work performed on a rest day which is also a special day. he shall be paid an additional compensation of at least 30% of his regular wage for that day. in which case.As a general rule.

. the premium pay rates for rest days are as follows: For work performed on rest days.In sum. an additional 30% of the daily rate or a total of 130%. an additional of 50% of the daily rate or a total of 150%. For work performed on a rest day which is also a special day. and For work performed on a regular holiday which is also the employee’s rest day. an additional 30% of the regular holiday rate of 200% or a total of 260%.

Work on a Rest Day Premium pay = 30% of Basic pay = 30% of P300.00 = P90.00 .3 x P300.00 = P390.00 Rate on Rest day = Basic pay + Premium pay = P300.00 + P90.00 = 0.

Rate = 260% of Basic pay = 2.00 + P180.00 .00 Premium pay = 0.00 = P180.00 = P780.00 = P780.00 Or.3 x Daily rate on holiday = 0.00 x 2 Daily rate on holiday =P600.Work on a Holiday Falling on a Rest Day Premium pay = 30% of Daily rate on holiday Daily rate on holiday = 200% of Basic pay Daily rate on holiday =P300.00 Rate on Rest Day falling on a Holiday = Daily rate on holiday + Premium pay = P600.6 x P300.3 x P600.

00 + P90.00 = P90.00 .3 x P300.00 Rate on Special Day = Basic pay + Premium pay = P300.00 = P390.00 = 0.Work on a Special Day Premium pay = 30% of Basic pay = 30% of P300.

00 = P150.00 .Work on a Special Day Falling on a Rest Day Premium pay = 50% of Basic pay = 50% of P300.00 Rate on Special Day on a Rest day = Basic pay + Premium pay = P300.00 = 0.00 = P450.5 x P300.00 + P150.

.Where the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled. he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays.

In case of holiday pay. . no pay” does not similarly apply to holiday pay. holiday pay is not a premium pay because it does not require performance of work by the employee. the principle “no work. unlike in premium pay.Using the definition of premium pay. the employee is entitled payment even if he does not work. Thus. The same cannot be said of premium pay.

and all rank and file employees became entitled to a 13th month pay regardless of the amount of their monthly basic salary . Originally. removed the salary ceiling.PD 851.000 a month. as amended by Memorandum Order No. Thirteenth Month Pay Law. MO 28 (1987). 28. requires all employers to pay their employees a 13th month pay not later than December 24 of every year. PD 851required payment of 13th month pay to employees receiving not more than P1.

assign or discipline employees. recall discharge. who have worked at least one month during the calendar year are entitled to 13th month pay.All rank-and-file employees. suspend. The Labor Code distinguishes a rank-and-file employee from a managerial employee. lay-off. or to effectively recommend such managerial actions. It provides that a managerial employee is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire. transfer. All employees not falling within this definition are considered rank-and-file employees. regardless of their designation or employment status. and irrespective of the method by which their wages are paid. Managerial employees are excluded from the coverage of the law. .

. company practice or policy. Excludes allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary. Only basic salary is included in the computation of 13th month pay. salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual or collective agreement. However. the same are treated as part of the basic salary of the employees.Not less than 1/12 of the total basic salary earned by the employee within the calendar year.

Managerial employees. Those paid on purely commission. and those who are paid fixed amount for performing specific work except those paid on a piece-rate basis. Those already receiving 13th month pay or its equivalent. . Those covered under the civil service law. mid-year bonus. or task basis. Christmas bonus. boundary. cash bonuses and other payments amounting to not less than 1/12 of the basic salary are treated as equivalent of 13th month pay.

Not entitled to 13th month pay if purely on commission basis. Employees paid on partly commission basis..e. those guaranteed with a fixed wage aside from the commission. . are entitled to 13th month pay. i.

) Commission as a direct remuneration for service rendered – forms part of basic salary. NLRC.) . (see Philippine Duplicators v. not to be included in computation (Boie Takeka case.Types of commission: Commission as an incentives or encouragement to ensure productivity. i. 1993.e.. productivity bonus – does not form part of basic salary. 1993.

If he is a government employee. If employee works in two or more private firms.Employees with multiple employers are entitled to 13th month pay from all their private employers. he is entitled to the pay from both or all of them. he is entitled to 13th month pay from the private enterprise. . but works part time in a private enterprise.

Private school teachers are entitled to 13th month pay regardless of the numbers of months they work in a year. provided it is at least one month. .

provided it is at least one month. The payment may be demanded by the employee upon the cessation of employment.Employees who resigned or were separated during the calendar year shall be entitled to 13th month pay in proportion to the length of time he worked during the year. .

For 2 to 3 years. etc.. Nota bene: There is no specific rule as to how many years are necessary to constitute “company practice”.) . (Sevilla Trading v. Sevilla Trading. maternity leave pay. AVA Tomas. in the computation 13th month pay. GR No. 152456. added the night premium. allegedly by mistake. The court ruled that the inclusion may no longer be withdrawn if it has already ripened into a company practice.

) .Employees paid according to “boundary” system are not entitled to 13th mo pay. They are akin to employees paid on purely commission basis. (R&E Transport v. G.R. 155214. Latag. but retain only those sums in excess of the “boundary” or fee they pay to the owners or operators of their vehicles. No. Boundary system is where the employees do not receive fixed wages.

) . (PACIWU v.Drivers who are paid on commission basis. are entitled to 13th month pay. but with guaranteed minimum wage in case their commission be less than their basic minimum. NLRC. GR No 107994.

Basis Article 95 (Book Three. Its implementation is covered by Section 2. Rule V. Book III of the Omnibus Rules. Title I) of the Labor Code provides the basis of the grant of Service Incentive Leave to qualified employees. .

Employees entitled to SIL Every employee (subject to the exceptions below) who has rendered at least one year of service is entitled to yearly service incentive leave of five days with pay. .

“At least one year of service” The term “at least one-year service” means service for not less than 12 months. . whether continuous or broken.

“At least one year of service” The 12-month period shall be reckoned from the date the employee started working. or is so provided in the employment contract . including authorized absences and paid regular holidays. The only instance when service shall be deemed as one year even when the employee serves less than that period is when the operation of the establishment is less than 12 months as a matter of practice or policy.

The following employees are excluded from entitlement to SIL under the Labor Code (but they may be entitled to the same or similar benefits if so provided under other laws. Managerial employees as defined in Book Three of the Labor Code. or collective bargaining agreement or employment contract): Those of the government and any of its political subdivisions. Domestic helpers and persons in the personal service of another. . including government-owned and controlled corporations.

or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof. purely commission basis. Those who are already enjoying the benefit herein provided.Field personnel and other employees whose performance is unsupervised by the employer including those who are engaged on task or contract basis. .

Those enjoying vacation leave with pay of at least five days. (Omnibus Rules) . and Those employed in establishments regularly employing less than ten employees.

. And. the unused SIL may be commuted to cash. at the end of the year.The service incentive leave may be used for sick and vacation leave purposes.

Under the Omnibus Rules, the unused service
incentive leave is commutable to its money
equivalent at the end of the year. [N.B. Not
found in the LC.]

Instead of using up SIL, the employee may
accumulate it and opt for its commutation to
cash upon his resignation or separation from
Computation of SIL
In computing SIL, the basis shall be the salary
rate at the date of commutation. The
availment and commutation of this benefit
may be on a pro rata basis. (DOLE Handbook)

An employee was hired on January 1, 1997,
and resigned on March 1, 1998. Assuming he
has not used or commuted any of his SIL
credits, he is entitled upon his resignation to
the commutation of his accumulated SIL as
SIL earned as of Dec. 31, 1997 = 5 days
Proportionate SIL for Jan. and Feb. 1998 =
(2/12) x 5 days = 0.833 day
Total as of March 1, 1998 = 5.833 days

not number of hours worked in a day. . or should the entitlement be on pro-rata basis? Part-time workers are entitled to full five days SIL. (BWC Advisory Opinion) The reason is that the Labor Code speaks of number of months worked in a year. as basis for entitlement.Are part-time workers entitled to the full five days SIL.

the five-days paid vacation leave may be credited as SIL. Thus. For example. if a company is giving its employees 15 days vacation leave. the grant of vacation or sick leave with pay of at least five days may be credited as compliance with SIL. .The Labor Code treats vacation leave and sick leave under the same category as Service Incentive Leave or leave with pay. five days of which is with pay.

The claim was not sustained. Ople.) . Teachers. (CIT vs. not being field personnel. 1987. It was held that the phrase “those who are engaged on task or contract basis” as mentioned in the Omnibus Rules should be read in relation to “field personnel”.Petitioner CIT claimed that teachers are not entitled to SIL because they are engaged by the school on contractual basis. are entitled to SIL.

Inc. not at the end of the year when the employee becomes entitled to the commutation of his service incentive leave. as the case may be. 2005) .Applying Article 291 of the Labor Code in light of this peculiarity of the service incentive leave. vs. we can conclude that the three (3)-year prescriptive period commences. Bautista. (Auto Bus Transport. but from the time when the employer refuses to pay its monetary equivalent after demand of commutation or upon termination of the employee’s services.

(Auto Bus Transport. Bautista. 2005) . Inc. What must be ascertained in order to resolve the issue of propriety of the grant of service incentive leave to respondent is whether or not he is a field personnel. vs.Petitioner’s contention that respondent is not entitled to the grant of service incentive leave just because he was paid on purely commission basis is misplaced.

G. 2005.R. where the employer claims that the employee is not entitled to service incentive leave pay inasmuch as establishment employing less than ten (10) employees are exempted from paying service incentive leave pay. (C. 144619.) . et al. NLRC. Thus. November 11. vs. it is the employer’s duty to prove that it is covered under the exemption. Planas Commercial. it has the duty to prove that there were less than ten employees in the company.Exemptions. No. To claim exemption from payment of service incentive leave pay.

or to the SSS if separated. Checklist for Availment of Maternity Benefits under Social Security Act The pregnant woman employee must have paid at least three monthly contributions within the 12-month period immediately preceding the semester of her childbirth or miscarriage. . 8282). voluntary or self-employed member. She has given the required notification of her pregnancy through her employer if employed.Basis: Maternity leave benefits are found under the Article 133 of the Labor Code and Section 14-A of Act No.

Attributes Minimum Wage .

Employer – includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches. business trust.Definitions (Article 97) Person – An individual. or organizations. one who is suffered or permitted to work in exchange for payment. subdivisions and instrumentalities. partnership. legal representative or any organized groups of persons. Employee – Any individual employed by an employer. association or corporation. all government owned and controlled corporations and institutions as well as non-profit private institutions. .

and (2) facilities provided by the employer. which must be in legal tender.Compensation paid to the employee for work or services rendered. The regular wage of an employee has the following components: (1) Cash wages. .

piece or commission basis. . lodging. Capable of being expressed in terms of money. however designated. or other facilities customarily furnished by the employer to the employee.Remuneration or earnings. task. whether fixed or ascertained on a time. Payable by an employer to an employee under a written or unwritten contract of employment For work done or to be done. or for services rendered or to be rendered Includes the fair and reasonable value. or other method of calculating the same. as determined by the DOLE Secretary of board.

The phrase shall not include any profit to the employer. . or to any person affiliated with the employer (see discussion on facilities).

Facilities may be deducted from what is reflected as wages to derive cash wages. provided: They are customarily given. . The deduction must be with (a) voluntary acceptance and (b) the written consent of the employee. Charged at a fair and reasonable value This is relevant in determining rates for computing overtime and premium pay.Articles or services for the benefit of the employee or his family Shall not include tools of the trade or articles or services primarily for the benefit of the employer or necessary to the conduct of the employer’s business. and.

lodging and other facilities customarily furnished by an employer both in agri and non-agri enterprises .Fair and reasonable value of board.

.Supplements. – refer to extra remuneration or special privileges or benefits given to or received by laborers over and above their ordinary earnings or wages.

use of facilities) but its purpose. supplement The distinction lies not in the type of benefit given (food. accommodations.Both are not part of the CASH COMPONENT of wages. . sick leave. A facility is given for the benefit of the employee. If necessary in order to maintain health. efficiency of workers during work.

L-12444. not as part of their wages but as a necessary matter in the maintenance of the health and efficiency of the crew personnel during the voyage. Cebu Seamen’s Association. and the operator…should continue giving the same benefit. when meals are freely given to crew members of a vessel while they were on the high seas.State Marine Cooperation and Royal Line. vs. the deductions made therefrom for the meals should be returned to them.” . Thus. Supplements on the other hand may not be so charged. 1963: “Facilities may be charged to or deducted from wages. Feb. Inc.

May 2005). Adana (GR No. Considering…that hotel workers are required to work different shifts and are expected to be available at various odd hours. their ready availability is a necessary matter in the operations of a small hotel…The deduction of the cost of meals from respondent’s wages. therefore should be removed.Mayon Hotel & Restaurant vs. citing Mabeza Food or snacks or other convenience provided by the employers are deemed as supplements if they are granted for the convenience of the employer. . 157634.

which is paid for services rendered. RATA belongs to a basket of allowances to defray expenses deemed unavoidable in the discharge of office. – Is a gift freely given by the employer in appreciation of certain favors or services rendered. It is not demandable as a matter of right. March 18. Allowance. 2010). GR No. It is not part of wages since it is not intended as compensation for actual work.Gratuity. Olivia Leones. Statutory law. as implemented by administrative issuances and interpreted in decisions has consistently treated RATA as distinct from salary. 169726. . RATA – (DBM vs. Unlike salary.

A bonus is granted and paid to an employee for his industry and loyalty which contributed to the success of the employer’s business and made possible the realization of profits. the Supreme Court ruled that a bonus is not a demandable and enforceable obligation. Lepanto Ceramics Employees Association. Inc. GR No. vs. In the same case. 2010). A “bonus” is a gratuity or act of liberality of the giver. It is something given in addition to what is ordinarily received by or strictly due the recipient. 180866. except if it was promised by the employer and agreed upon by the parties (as when it is included in the CBA) .Bonus – (Lepanto Ceramics. A bonus is also granted by an enlightened employer to spur the employee to greater efforts for the success of the business and realization of bigger profits. March 2.

and.Minimum wage represents the lowest possible wage that an employer can legally pay its employees. Effectively increase the standard of living of workers. Aim of establishing minimum wage is To even out the distribution of income. .

Article 99: Minimum wage rates in every region of the country for agricultural and nonagricultural employees and workers shall be prescribed by the RTWPBs. also known as the "Wage Rationalization Act" established a new mechanism for minimum wage determination through the creation of the National Wages and Productivity Commission ( NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs) in all regions of the country. Republic Act No. RA 6727). . 6727. (Read this in relation to Section 3.

.Basis for computing minimum wage. The RTWPB promulgates WAGE ORDERS pursuant to its wage-fixing authority. the RTWPB shall investigate and study all pertinent facts and based on the standards and criteria prescribed by RA 6727. Wage Orders. The basis of computation of minimum wage shall be the normal working hours which shall not be more than eight hours a day. Whenever conditions in a particular region so warrant.

and changes or increases therein Needs of workers and their families Need to induce industries to invest in the countryside Improvement of standards of living Prevailing wage levels Fair return of the capital invested and employers’ capacity to pay Effects on employment generation and family income Equitable distribution of income and wealth along the imperatives of economic and social development .The RTWPB shall consider the following in determining minimum wage: The demand for living wages Wage adjustments vis-à-vis the Consumer Price Index Cost of living.

or other logical bases of differentiation. length of service.A situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills. .

including “pakyao”.(a) The Secretary of Labor and Employment shall regulate the payment of wages by results. piecework. Payment by results. preferably through time and motion studies or in consultation with representatives of workers’ and employers’ organizations. . and other non-time work. . in order to ensure the payment of fair and reasonable wage rates.ARTICLE 101.

There are two categories of employees paid by results: 1. NLRC & J.C. Those whose time and performance are unsupervised (here. the employer’s control is over the result of the work.). and 2. Workers on pakyaw and takay basis belong to this group). GR No. A piece-rate worker belongs to this category especially if he performs his work in the company premises. (Here there is an element of control and supervision over the manner as to how the work is to be performed. 111042. Those whose time and performance are supervised by the employer. October 26. Tailor/Johnny Co. 1999. .Avelino Lambo & Vicente Belocura vs. .

(2) share among themselves the wages (3) commensurate to the results of their work. considering the circumstances.” A system where a group of workers (1) define their own work time and methods. For this reason. .“Pakyao. the DOLE must ensure that payment of wages by pakyao or piece rate will be FAIR and REASONABLE. The wages earned by an individual in a particular day may not be equal to the wage of a regular worker.

Article 100. Labor Code. Nothing in the Labor Code shall be construed to eliminate or in any way diminish supplements.Prohibition against elimination or diminution of benefits. . or other employee benefits being enjoyed at the time of promulgation of this Code.

” . including its implementing rules and regulations shall be rendered in favor of labor.” The Constitution mandates the state to “protect the rights of workers and promote their welfare.The principle of non-diminution of benefits states that: “any benefit and supplement being enjoyed by employees cannot be reduced. discontinued or eliminated by the employer.” This is the basis of Article 4 of the Labor Code which states that “all doubts in the implementation and interpretation of this Code. diminished.” and “to afford labor full protection.

service incentive leave. PhilHealth. maternity benefits. etc. e. or voluntarily offered by the employer as an incentive to attract and retain employees as well as increase employee morale and improve job performance. They may be required by law such as social security benefits.. .Employee benefits are compensation given to employees in addition to regular salaries or wages. retirement benefits.. Supplements include those benefits or privileges granted to an employee for the convenience of the employer. board and lodging within the company premises.g.

In employment setting, the principle of
non-diminution of benefits finds
application when a change initiated by the
employer to existing company policies,
specially matters concerning employee
benefits, results in reduction, diminution or
withdrawal of some or all of the benefits
already enjoyed by the employees.

TSPIC corporation vs. TSPIC Employee’s
Union (FFW), et al., GR No. 163419, Feb. 13,
2008. Diminution is manifested when:

The grant or benefit is founded on a policy, or
has ripened into a practice over a long period of
The practice is consistent and deliberate;
The practice is not due to error in the
construction or application of a doubtful or
difficult question of law, and;
The diminution or discontinuance is done
unilaterally by the employer.

With regard to the length of time the company practice should have been
exercised to constitute voluntary employer practice which cannot be unilaterally
withdrawn by the employer, the Court has not laid down any rule requiring a
specific minimum number of years.
In the case of Davao Fruits Corporation vs Associated Labor Unions (G.R. No.
85073, August 24, 1993), the company practice lasted for six years.
In Davao Integrated Port Stevedoring Services vs. Abarquez (G.R. No. 102132,
March 19, 1993), the employer, for three years and nine months, approved the
commutation to cash of the unenjoyed portion of the sick leave with pay benefits
of its Intermittent workers.
In Tiangco vs Leogardo, Jr. (G.R. No. L-57636, May 16, 1983), the employer
carried on the practice of giving a fixed monthly emergency allowance from
November 1976 to February 1980, or three years and four months.
In the case of Sevilla Trading Company vs Semana, ibid., the employer kept the
practice of including non-basic benefits such as paid leaves for unused sick leave
and vacation in the computation of their 13th-month pay for at least two (2) years.
In all these cases, the grant of benefits has been held to have ripened into
company practice or policy which cannot be peremptorily withdrawn.
Integration of Monetary Benefits to the Basic Pay


Forms of payment.ARTICLE 102. . tickets. the worker may be paid through another person under written authority given by the worker for the purpose. tokens. or any object other than legal tender. even when expressly requested by the employee le or under other special circumstances to be determined by the Secretary of Labor and Employment in appropriate regulations. in which case. The claimants. in which case. if they are all of age. chits. coupons. The representative of the Secretary of Labor and Employment shall act as referee in dividing the amount paid among the heirs. shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs. the employer may pay the wages of the deceased worker to the heirs of the latter without the necessity of intestate proceedings. . vouchers. The payment of wages under this Article shall absolve the employer of any further liability with respect to the amount paid. If any of the heirs is a minor. or (b) Where the worker has died.No employer shall pay the wages of an employee by means of promissory notes. The affidavit shall be presented to the employer who shall make payment through the Secretary of Labor and Employment or his representative. to the exclusion of all other persons. the affidavit shall be executed on his behalf by his natural guardian or next-of-kin.