LABOR by Poquiz PDF

2013 LABOR STANDARDS & SOCIAL LEGISLATION | ARELLANO UNIVERSITY SCHOOL OF LAW
Primary Reference: Taxonomy/ Classification of Labor Laws

LABOR STANDARDS LAW WITH NOTES AND (a) Protective legislations (protection
COMMENTS (Volume 1), by Dean S.A. Poquiz against discrimination of women and
child labor)
(b) Welfare or social legislations (life
GENERAL PRINCIPLES AND CONCEPT membership in health cards, retirement
laws, agrarian reform law)
(c) Diplomatic legislations (designed to
Introduction settle disputes through peaceful modes)
(d) Administrative legislations (creating
local bodies, ex. NLRC, POEA, TESDA)
Labor (e) Labor relations legislations (more on
• Refers to physical or mental exertion worker’s rights to self-organization)
necessary to produce goods. (f) Labor standards legislations
• In a broader concept, it may include (minimum requirements as to wages,
labor force who are employed or those hours of work and other monetary or
who are able and willing to work but are welfare benefits)
temporarily or involuntarily unemployed.
Labor Law Social Legislation
Manpower More direct in application Governs the effects of
• Portion of the nation’s population which as it affects directly employment such as
has actual or potential capability to actual employment such compensation for
contribute to the production of goods as wages injuries and death
Designed to meet the Involves long term
and services.
daily needs of a worker benefits
Covers employment for Covers employment for
Labor Law profit or gain gain or non-profit
• Includes all the rules of law governing Affects the work of the Affects the life of the
the conditions under which persons may employee employee
work under the control of other person Benefits are paid by the Paid by government
called employers. worker’s employer agencies administering
such program
Labor Standards
• It prescribes the terms and conditions of Purpose of Labor Legislation
employment as affecting wages or • To protect the worker from the mighty
monetary benefits, hours of work, cost and to correct the injustices that are
of living allowances, and occupational inherent in employer-employee
health, safety and welfare of the relationship.
workers. • To provide set of restrictions upon the
worker in his relationship with the
Labor Relations employer and vice versa to maintain
• Used to denote all matters arising out of industrial peace and harmony; thereby
employer-employee relationship promoting industrial democracy.
involving the concerted action on the
part of the workers which is usually
related with the right to self- Sources of Labor Laws
organization, collective bargaining and
negotiation purposes. 1. Primary
a. Philippine Constitution
Social Legislation b. Legislations passed by Congress
• A law governing employer-employee c. Decisions of the Supreme Court
relationship while the latter is not “at d. Implementing Rules and
work” due to hazards beyond his control Regulations of DOLE
arising from employment which e. Decisions of quasi-judicial bodies
immobilize him from working. such as NLRC
(Ex. Retirement law, agrarian reform) f. ILO conventions
Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 1

2. Auxiliary
a. Opinions of the Secretary of Labor [S]ocial justice –– or any justice for that matter
–– is for the deserving, whether he be a
and employment millionaire in his mansion or a pauper in his
b. Opinions of the secretary of Justice hovel. It is true that, in case of reasonable
c. Reports, debates, hearings made doubt, we are called upon to tilt the balance in
and conducted by Congress favor of the poor, to whom the Constitution
fittingly extends its sympathy and
d. Labor law reviews compassion. But never is it justified to prefer
e. Labor law and social legislation the poor simply because they are poor, or to
textbooks reject the rich simply because they are rich, for
f. Opinions of legal luminaries justice must always be served, for poor and
rich alike, according to the mandate of the law.
g. Foreign laws and decisions Gelos v. CA, G.R. No. 86186, May 8, 1992
Legal Bases for Labor and Social Legislation

• Police power of the state Protection to labor clause
• Social justice clause Section 3, Article XIII of the 1987 Constitution
• Protection to labor clause
“The State shall afford full protection to labor, local and
• Doctrine of Incorporation clause overseas, organized and unorganized, and promote full
• Social service clause employment and equality of employment opportunities
• Full employment clause for all.
• Freedom from poverty clause It shall guarantee the rights of all workers to self-
• Freedom of association clause organization, collective bargaining and negotiations,
• Due process and equal protection and peaceful concerted activities, including the right to
strike in accordance with law. They shall be entitled to
clauses security of tenure, humane conditions of work, and a
living wage. They shall also participate in policy and
Police power of the state decision-making processes affecting their rights and
benefits as may be provided by law.
Salus populi est suprema lex - the The State shall promote the principle of shared
welfare of the people is the supreme law responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes,
Sic utere tuo ut alienum non laedas – including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
so use your own as not to injure another’s
property The State shall regulate the relations between workers
and employers, recognizing the right of labor to its just
Social Justice Clause share in the fruits of production and the right of
Section 10, Article II of the 1987 Constitution enterprises to reasonable returns to investments, and to
expansion and growth.”
“The State shall promote social justice in all

Full employment
phases of national development.”
• Those who want to work at the
"Social justice is 'neither communism, nor prevailing rates of pay are able to
despositism, nor atomism nor anarchy,' but find work without undue difficulty
the humanization of laws and the equalization • More job openings than there are
of social and economic forces by the State so
job applicants
that justice in its rational and objectively
secular conception may at least be • It does not mean that everybody is
approximated. Social justice means the working
promotion of the welfare of all the people, the
adoption by the Government of measures
calculated to insure economic stability of all
Significance of full employment
the component elements of society, through 1. Ushers economic gains
the maintenance of a proper economic and 2. Promotes social and economic
social equilibrium in the inter-relations of the security
members of the community, constitutionally,
through the adoption of measures legally
3. Promotes human dignity
justifiable, or extra-constitutionally, through 4. An antidote against revolutionary
the exercise of powers underlying the ideologies
existence of all governments on the time- 5. Regulates employer’s discriminatory
honored principle of salus populi est suprema
lex." Calalang v. Williams, 70 Phil. 726 (1940)
practices

Constitutional Rights of Workers Standard of living Cost of living

1. Right to self-organization Deals with WHAT Deals with HOW MUCH
2. Right to collective bargaining facilities are needed by facilities that an
3. Right to security of tenure an employee to assure employee could cost in
4. Right to just an humane conditions himself and his family a order to maintain his
life worthy of human standard of living worthy
of work dignity of human dignity
5. Right to collective negotiations
6. Right to peaceful concerted Due process – a law which hears before it
activities condemn, which proceeds from inquiry and
7. Right to strike renders judgment only after trial.
8. Right to a living wage
9. Right to participate in policy and Equal protection of the law – civil rights
decision making
must be enjoyed by the same persons of the
10. Right to just share in the fruits of
same class. (not available to aliens)
production
Government employees not similarly
Limitations of Labor Legislation situated with private sector employees
1. Non-impairment of contracts
2. Non-delegation of legislative power Government Private Sector
3. Constitutional provision against Employees Employees
involuntary servitude Objective is to promote Objective is to gain
4. Equal protection of the law common good profit
Terms and conditions are Governed by labor law
fixed by law and and determined through
Constitutional and Statutory Basis governed by civil service machinery of collective
bargaining
Protective Service Clause Salaries are from public Salaries are from funds
Section 5, Article II of the 1987 Constitution funds appropriated contributed by private
pursuant to law individuals or institutions
“The maintenance of peace and order, the Doctrine of state No such sovereignty is
protection of life, liberty, and property, and sovereignty applies applicable
promotion of the general welfare are essential
for the enjoyment by all the people of the
blessings of democracy.” Common Forms of Involuntary Servitude
1. Servitude – condition of voluntary or
Freedom from Poverty compulsory subjection of a person
Section 9, Article II of the 1987 Constitution to a master
2. Slavery – or bondage is the entire
“The State shall promote a just and dynamic subjection to one another
social order that will ensure the prosperity and 3. Peonage – is service of the peon to
independence of the nation and free the people another on account of an enforced
from poverty through policies that provide indebtedness, usually arising from
adequate social services, promote full advances made by employee in the
employment, a rising standard of living, and an form of food, clothing, housing or
improved quality of life for all.” transportation
4. Padrone system – where workers
Poverty are employed through their leader
• Low status, with little to lose, little known as the padroni who advances
respect, little to be proud of, little to transportation charges and supplies
sustain efforts to improve. food and clothing for them. In return
• It means bad housing conditions, for these services, the worker
lack of sanitation in the vicinity, and agrees to serve any employer with
lack of attractive community whom the padroni had contracted to
institutions sell a worker’s labor.

Presidential Decree No. 442, AS AMENDED announcement of their adoption in newspapers

May 1, 1974 of general circulation.
A DECREE INSTITUTING A LABOR CODE Implementing Agencies

THEREBY REVISING AND CONSOLIDATING •
LABOR AND SOCIAL LAWS TO AFFORD • Department of Labor and Employment
PROTECTION TO LABOR, PROMOTE • National Labor Relations Commission
EMPLOYMENT AND HUMAN RESOURCES • Philippine Overseas Employment
DEVELOPMENT AND INSURE INDUSTRIAL Administration
PEACE BASED ON SOCIAL JUSTICE • National Wages and Productivity
Commission
• Employees Compensation Commission
Chapter I • Social Security Commission
PRELIMINARY TITLE • Overseas Workers Welfare
Administration
GENERAL PROVISIONS • Government Services and Insurance
System
Article 1. Name of Decree.
This Decree shall be known as the "Labor Code Article 6. Applicability.
of the Philippines". All rights and benefits granted to workers under
this Code shall, except as may otherwise be
The Labor Code is defined as the “charter of provided herein, apply alike to all workers,
human rights and bill of obligations” for every whether agricultural or non-agricultural. (As
worker. amended by Presidential Decree No. 570-A,
November 1, 1974)
Article 2. Date of effectivity.
This Code shall take effect six (6) months after Four-Fold Test/ Economic Reality Test
its promulgation. 1. Manner of selection and engagement of
the putative employee
The Labor Code took effect on November 1, 2. Mode of payment of wages
1974 after the lapse of 6-month transition period. 3. Presence or absence of the power of
dismissal
Article 3. Declaration of basic policy. 4. Presence or absence of power to control
The State shall afford protection to labor, the putative employee’s conduct
promote full employment, ensure equal work
opportunities regardless of sex, race or creed Hiring by competent persons
and regulate the relations between workers and a. If it is done by an agent with actual
employers. The State shall assure the rights of authority
workers to self-organization, collective b. If it is done by an agent with apparent
bargaining, security of tenure, and just and authority
humane conditions of work. c. If it is done without authority, but
subsequently ratified either expressly or
Article 4. Construction in favor of labor. impliedly
All doubts in the implementation and
interpretation of the provisions of this Code, Most Decisive Control Test
including its implementing rules and regulations, • An employment relation obtains where
shall be resolved in favor of labor. work is performed or services rendered
under the control and supervision of the
Article 5. Rules and regulations. party contracting for the service, not
The Department of Labor and other government only as to result of the work but also the
agencies charged with the administration and manner and details of performance.
enforcement of this Code or any of its parts shall • Power of control refers merely to the
promulgate the necessary implementing rules existence and not the exercise thereof.
and regulations. Such rules and regulations shall
become effective fifteen (15) days after

Manner of Creation/ Original Charter Test

• If the GOCC is created under In case of default, the amortization due shall be
corporation law, it is covered by Labor paid by the farmers’ cooperative in which the
Code defaulting tenant-farmer is a member, with the
• If the GOCC is created by acts of cooperative having a right of recourse against
Congress, it is governed by Civil Service him.
Law
The government shall guarantee such
Chapter II amortizations with shares of stock in
EMANCIPATION OF TENANTS government-owned and government-controlled
corporations.
Article 7. Statement of objectives.
Inasmuch as the old concept of land ownership Article 10. Conditions of ownership.
by a few has spawned valid and legitimate No title to the land acquired by the tenant-farmer
grievances that gave rise to violent conflict and under Presidential Decree No. 27 shall be
social tension and the redress of such legitimate actually issued to him unless and until he has
grievances being one of the fundamental become a full-fledged member of a duly
objectives of the New Society, it has become recognized farmers’ cooperative.
imperative to start reformation with the
emancipation of the tiller of the soil from his Title to the land acquired pursuant to
bondage. Presidential Decree No. 27 or the Land Reform
Program of the Government shall not be
Article 8. Transfer of lands to tenant- transferable except by hereditary succession or
workers. to the Government in accordance with the
Being a vital part of the labor force, tenant- provisions of Presidential Decree No. 27, the
farmers on private agricultural lands primarily Code of Agrarian Reforms and other existing
devoted to rice and corn under a system of laws and regulations.
share crop or lease tenancy whether classified
as landed estate or not shall be deemed owner Article 11. Implementing agency.
of a portion constituting a family-size farm of five The Department of Agrarian Reform shall
(5) hectares, if not irrigated and three (3) promulgate the necessary rules and regulations
hectares, if irrigated. to implement the provisions of this Chapter.
In all cases, the land owner may retain an area BOOK ONE
of not more than seven (7) hectares if such PRE-EMPLOYMENT
landowner is cultivating such area or will now
cultivate it. Article 12. Statement of objectives.
It is the policy of the State:
N.B.
Livestock and poultry lands are not (a) To promote and maintain a state of full
covered by R.A. No. 6657 employment through improved
manpower training, allocation and
Article 9. Determination of land value. utilization;
For the purpose of determining the cost of the (b) To protect every citizen desiring to work
land to be transferred to the tenant-farmer, the locally or overseas by securing for him
value of the land shall be equivalent to two and the best possible terms and conditions
one-half (2-1/2) times the average harvest of of employment;
three (3) normal crop years immediately (c) To facilitate a free choice of available
preceding the promulgation of Presidential employment by persons seeking work in
Decree No. 27 on October 21, 1972. conformity with the national interest;
(d) To facilitate and regulate the movement
The total cost of the land, including interest at of workers in conformity with the
the rate of six percent (6%) per annum, shall be national interest;
paid by the tenant in fifteen (15) years of fifteen (e) To regulate the employment of aliens,
(15) equal annual amortizations. including the establishment of a
registration and/or work permit system;

(f) To strengthen the network of public placement activities as a private recruitment

employment offices and rationalize the entity.
participation of the private sector in the
recruitment and placement of workers, "Seaman" means any person employed in a
locally and overseas, to serve national vessel engaged in maritime navigation.
development objectives;
(g) To insure careful selection of Filipino "Overseas employment" means employment of
workers for overseas employment in a worker outside the Philippines.
order to protect the good name of the
Philippines abroad. "Emigrant" means any person, worker or
otherwise, who emigrates to a foreign country by
Title I virtue of an immigrant visa or resident permit or
RECRUITMENT AND PLACEMENT OF its equivalent in the country of destination.
WORKERS
N.B.
Chapter I In recruitment and placement, the number of
GENERAL PROVISIONS persons dealt with is not essential. (People v.
Panis, 142 SCRA 664)
Article 13. Definitions.
Article 14. Employment promotion.
"Worker" means any member of the labor force, The Secretary of Labor shall have the power
whether employed or unemployed. and authority:
"Recruitment and placement" refers to any act (a) To organize and establish new
of canvassing, enlisting, contracting, employment offices in addition to the
transporting, utilizing, hiring or procuring existing employment offices under the
workers, and includes referrals, contract Department of Labor as the need arises;
services, promising or advertising for
employment, locally or abroad, whether for profit (b) To organize and establish a nationwide
or not: Provided, That any person or entity job clearance and information system to
which, in any manner, offers or promises for a inform applicants registering with a
fee, employment to two or more persons shall particular employment office of job
be deemed engaged in recruitment and opportunities in other parts of the
placement. country as well as job opportunities
abroad;
"Private fee-charging employment agency"
means any person or entity engaged in (c) To develop and organize a program that
recruitment and placement of workers for a fee will facilitate occupational, industrial and
which is charged, directly or indirectly, from the geographical mobility of labor and
workers or employers or both. provide assistance in the relocation of
workers from one area to another; and
"License" means a document issued by the
Department of Labor authorizing a person or (d) To require any person, establishment,
entity to operate a private employment agency. organization or institution to submit such
employment information as may be
"Private recruitment entity" means any person prescribed by the Secretary of Labor.
or association engaged in the recruitment and
placement of workers, locally or overseas, Functions of Public Employment Offices
without charging, directly or indirectly, any fee a) Provide free placement of workers
from the workers or employers. applying for both domestic and overseas
employment;
"Authority" means a document issued by the b) Provide adequate vocational guidance
Department of Labor authorizing a person or and testing services to persons seeking
association to engage in recruitment and help in choosing or changing an
occupation;

c) Classify registered applicants in Article 17. Overseas Employment

accordance with job titles and codes of Development Board.
Philippine Standard Classification;
d) Arrange for training or retraining of N.B.
unemployed applicants in occupations Article 17 has been superseded by Executive
or trades where they are suitably Order No. 797, May 1, 1982.
qualified and have greater prospects of
employment; The OEDB was abolished and replaced by
e) Arrange for inter-area placements of POEA.
unemployed workers through a
nationwide job clearance and Regulatory powers of POEA
information system; (a) Issuance of license
f) Furnish the Bureau of Local (b) Suspension, cancellation or revocation
Employment or POEA with list of of license
registered job applicants and job (c) Approval of transfer of business address
openings. The BLE or POEA acts as the (d) Approval of establishment of executive
national job-clearing house. offices outside of the registered address
(e) Approval of appointment of
Submission of Reports representatives or agents
At the end of each month, an employer with at (f) Accreditation of principals or projects
least six (6) employees is required to submit to (g) Revocation of accreditation
the nearest public employment office: (h) Closure of agencies engaged in illegal
a) List of existing job vacancies or opening recruitment activities
b) List of new employees, if any (i) Registration of any change in the
c) Termination, lay-off or retirement composition of Board of Directors,
d) Total number of employed workers for officers and personnel of a recruitment
the period agency
e) Request for assistance, if needed to fill
vacancies or openings Quasi-Judicial powers of the POEA
(a) Disciplinary cases involving overseas
Article 15. Filipino workers
Bureau of Employment Services. (b) Pre-employment cases which are
administrative in character:
N.B. 1. involving or arising out of
Article 15 has been superseded by Executive recruitment laws, rules and
Order No. 797, May 1, 1982. regulations
2. including money claims arising from
Article 16. Private recruitment. (b.1) above, or
Except as provided in Chapter II of this Title, no 3. violation of conditions for issuance
person or entity other than the public of license to recruit workers
employment offices, shall engage in the
recruitment and placement of workers. Article 18. Ban on direct-hiring.
No employer may hire a Filipino worker for
GENERAL RULE: Only public employment overseas employment except through the
offices can engage in recruitment and placement Boards and entities authorized by the Secretary
of workers for local and overseas. of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and
EXCEPTION: Private sector may be given the such other employers as may be allowed by the
privilege to engage in recruitment and Secretary of Labor is exempted from this
placement limited only to: provision.
1. Employment agencies
2. Recruitment entities GENERAL RULE: No employer may hire a
3. Shipping or manning agents Filipino worker for overseas employment.
4. Other persons as may be authorized by
Secretary of Labor and Employment EXCEPTION:
a) diplomatic corps

b) international organizations (e) To gather and analyze information on

c) other employees allowed by Secretary the employment situation and its
of Labor and Employment probable trends, and to make such
information available; and
EXCEPTION TO THE EXCEPTION:
Name Hire – a worker who is able to secure (f) To perform such other duties as may be
contract for employment overseas without the required of them from time to time.
assistance or participation of any agency.
However, he should still undergo processing Article 22. Mandatory remittance of foreign
by the POEA. exchange earnings.
It shall be mandatory for all Filipino workers
Article 19. abroad to remit a portion of their foreign
Office of Emigrant Affairs. exchange earnings to their families, dependents,
and/or beneficiaries in the country in accordance
N.B. with rules and regulations prescribed by the
Article 19 has been superseded by B.P. 79, Secretary of Labor.
June 16, 1980
GENERAL RULE: It is mandatory for all Filipino
Article 20. workers to remit a portion of their foreign
National Seamen Board. exchange earnings to their families, dependents,
and/or beneficiaries in the country through BSP
N.B. or DOLE authorized agents
Article 15 has been superseded by Executive
Order No. 797, May 1, 1982. EXCEPTION:
Remittance is not mandatory in the following
instance:
Article 21. Foreign service role and
(a) Where the worker’s immediate family
participation.
members, dependents, or beneficiaries
To provide ample protection to Filipino workers
are residing with him abroad;
abroad, the labor attaches, the labor reporting
(b) Filipino servicemen working in the U.S.
officers duly designated by the Secretary of
military installations;
Labor and the Philippine diplomatic or consular
(c) Immigrants and Filipino professionals
officials concerned shall, even without prior
and employees working with the United
instruction or advice from the home office,
Nations agencies or specialized bodies.
exercise the power and duty:
Amount of
(a) To provide all Filipino workers within remittance
their jurisdiction assistance on all Type of Employment
required in % of
matters arising out of employment; basic salary
Seamen, mariners 80%
(b) To insure that Filipino workers are not Workers of Filipino 70%
exploited or discriminated against; contractors and construction
companies
(c) To verify and certify as requisite to Doctors, engineers, teachers, 70%
authentication that the terms and nurses, and other
professionals with free board
conditions of employment in contracts
and lodging
involving Filipino workers are in Professionals without free 50%
accordance with the Labor Code and board and lodging
rules and regulations of the [POEA]; Domestic and other service 50%
workers
(d) To make continuing studies or All other workers 50%
researches and recommendations on
the various aspects of the employment
market within their jurisdiction; Article 23.
Composition of the Boards.

N.B.
Article 23 has been superseded by Executive Worker’s Deployment
Order No. 797, May 1, 1982. • 120 c.d. from the date of signing of
employment contract, for land based
Article 24. workers
Boards to issue rules and collect fees. • 30 c.d. from date of processing by
POEA of employment contract for
N.B. seafarers
Article 24 has been superseded by Executive
Order No. 797, May 1, 1982. Mandatory benefits
(a) Personal Accident and Life Insurance
(for land based workers)
Chapter II
(b) War-risk Insurance (for land based
REGULATION OF RECRUITMENT AND
workers)
PLACEMENT ACTIVITIES
(c) War-risk Premium Pay (for seafarers)
Article 25. Private sector participation in the
Serrano v. Gallant Maritime Services inc.
recruitment and placement of workers.
G.R. No. 167514. March 24, 2009
Pursuant to national development objectives and
in order to harness and maximize the use of In sum, prior to R.A. No. 8042, OFWs and local workers with
private sector resources and initiative in the fixed-term employment who were illegally discharged were
development and implementation of a treated alike in terms of the computation of their money
claims: they were uniformly entitled to their salaries for the
comprehensive employment program, the entire unexpired portions of their contracts. But with the
private employment sector shall participate in enactment of R.A. No. 8042, specifically the adoption of the
the recruitment and placement of workers, subject clause, illegally dismissed OFWs with an unexpired
locally and overseas, under such guidelines, portion of one year or more in their employment contract
have since been differently treated in that their money claims
rules and regulations as may be issued by the are subject to a 3-month cap, whereas no such limitation is
Secretary of Labor. imposed on local workers with fixed-term employment.
Private employment agency with a license – The Court concludes that the subject clause contains a
suspect classification in that, in the computation of the
refers to any person or entity engaged in the monetary benefits of fixed-term employees who are
recruitment and placement of workers for a fee illegally discharged, it imposes a 3-month cap on the
which is charged, directly or indirectly, from the claim of OFWs with an unexpired portion of one year or
workers or employers or both. more in their contracts, but none on the claims of other
OFWs or local workers with fixed-term employment. The
subject clause singles out one classification of OFWs
Private recruitment entity with authority – and burdens it with a peculiar disadvantage.
refers to any person or association engaged in
the recruitment and placement of workers, xxx
locally or overseas, without charging, directly [T]he Court GRANTS the Petition. The subject clause "or for
or indirectly, any fee from the workers or three months for every year of the unexpired term,
employers. whichever is less" in the 5th paragraph of Section 10 of
Republic Act No. 8042 is DECLARED
UNCONSTITUTIONAL; x x x
Fees/Escrow/Bonds Amount (PhP)
License fee 50,000
Escrow agreement 1,000,000 Article 26. Travel agencies prohibited to
Surety bond 100,000 recruit. Travel agencies and sales agencies of
airline companies are prohibited from engaging
Pre-Employment Tests in the business of recruitment and placement of
Trade tests for workers for overseas workers for overseas employment whether for
employment shall be conducted only after profit or not.
interview and pre-qualification to the position
covered by an approved job order by POEA. REASONS:
• Travel agencies are under the
N.B. supervision of Department of Tourism,
Medical examination shall only be conducted not the DOLE
after trade test or pre-qualified.

• Confusion may arise to the detriment Article 31. Bonds. All applicants for license or
and disadvantage of an overseas authority shall post such cash and surety bonds
applicant-worker as determined by the Secretary of Labor to
• May lead to exploitation of applicant- guarantee compliance with prescribed
worker who will be at mercy of the travel recruitment procedures, rules and regulations,
agency or sales agency of airline and terms and conditions of employment as may
company from the time his papers are be appropriate.
processed to the time he departs
• Illegal recruitment activities are traced
from travel agencies that facilitate JMM Promotions & Management Inc. v. NLRC
G.R. No. 109835. November 22, 1993
papers of job-seeker for overseas;
promising that their tourist visa will be It is true that the cash and surety bonds and the money
converted to working visa in the country placed in escrow are supposed to guarantee the payment of
of employment. all valid and legal claims against the employer, but these
claims are not limited to monetary awards to employees
whose contracts of employment have been violated. The
Article 27. Citizenship requirement. POEA can go against these bonds also for violations by the
Only Filipino citizens or corporations, recruiter of the conditions of its license, the provisions of the
partnerships or entities at least seventy-five Labor Code and its implementing rules, E.O. 247
(reorganizing POEA) and the POEA Rules, as well as the
percent (75%) of the authorized and voting settlement of other liabilities the recruiter may incur.
capital stock of which is owned and controlled by
Filipino citizens shall be permitted to participate As for the escrow agreement, it was presumably intended to
in the recruitment and placement of workers, provide for a standing fund, as it were, to be used only as a
last resort and not to be reduced with the enforcement
locally or overseas. against it of every claim of recruited workers that may be
adjudged against the employer. This amount may not even
Article 28. Capitalization. be enough to cover such claims and, even if it could initially,
All applicants for authority to hire or renewal of may eventually be exhausted after satisfying other
subsequent claims.
license to recruit are required to have such
substantial capitalization as determined by the
Secretary of Labor. Finman General Assurance Corp. v. NLRC
G.R. No. 94588. July 2, 1992
Capitalization Requirement
• Minimum capitalization of P2,000,000 The petition for certiorari is without merit. The POEA
for single proprietorship or partnership; Administrator did not exceed his jurisdiction nor act with
grave abuse of discretion in impleading FINMAN as a co-
• Minimum paid-up capital of P2,000,000 respondent in (L) RRB Case No. 88-03-474 and directing it
for corporations; to pay jointly and severally with Pan Pacific the claims of the
private respondents, Galiza and Bumanglag, on the basis of
the surety bond it issued for Pan Pacific. Said surety bond
Article 29. Non-transferability of license or
guarantees the faithful compliance by Pan Pacific of all laws
authority. relating to the use of its license and its recruitment activities.
No license or authority shall be used directly or The bond is conditioned upon the true and faithful
indirectly by any person other than the one in performance and observance by Pan Pacific of its duties and
obligations as a licensed placement agency (Art. 31, Title I,
whose favor it was issued or at any place other Book One, Labor Code of the Phils.). Accordingly, the nature
than that stated in the license or authority be of FINMAN's obligation under the suretyship agreement
transferred, conveyed or assigned to any other makes it privy to the proceedings against its principal, Pan
person or entity. Any transfer of business Pacific. FINMAN is bound by a judgment against its principal
eventhough it was not a party to the proceedings, for a
address, appointment or designation of any surety is considered in law as being the same party as the
agent or representative including the debtor in relation to whatever is adjudged touching the
establishment of additional offices anywhere obligation of the latter, and their liabilities are interwoven as
shall be subject to the prior approval of the to be inseparable
Department of Labor.
Article 30. Registration fees. Article 32. Fees to be paid by workers.

The Secretary of Labor shall promulgate a Any person applying with a private fee-charging
schedule of fees for the registration of all employment agency for employment assistance
applicants for license or authority. shall not be charged any fee until he has
obtained employment through its efforts or has
actually commenced employment. Such fee

shall be always covered with the appropriate

receipt clearly showing the amount paid. The (d) To induce or attempt to induce a worker
Secretary of Labor shall promulgate a schedule already employed to quit his
of allowable fees. employment in order to offer him to
another unless the transfer is designed
Prohibition on Charging Fees to liberate the worker from oppressive
(a) Placement fees cannot be collected terms and conditions of employment;
from a hired worker until he has signed
the employment contract and shall be (e) To influence or to attempt to influence
covered by receipts clearly showing the any person or entity not to employ any
amount paid; worker who has not applied for
(b) Manning agencies shall not charge any employment through his agency;
fee from seafarer-applicants for
recruitment and placement services; (f) To engage in the recruitment or
(c) No other fees or charges including placement of workers in jobs harmful to
processing fees shall be imposed public health or morality or to the dignity
against any worker. of the Republic of the Philippines;
Article 33. Reports on employment status. (g) To obstruct or attempt to obstruct

Whenever the public interest requires, the inspection by the Secretary of Labor or
Secretary of Labor may direct all persons or by his duly authorized representatives;
entities within the coverage of this Title to submit
a report on the status of employment, including (h) To fail to file reports on the status of
job vacancies, details of job requisitions, employment, placement vacancies,
separation from jobs, wages, other terms and remittance of foreign exchange
conditions and other employment data. earnings, separation from jobs,
departures and such other matters or
PURPOSE: information as may be required by the
• Data shall serve a guidelines in the Secretary of Labor.
formulation of national labor policies;
• Basis for appropriate preventive or (i) To substitute or alter employment
remedial legislations; contracts approved and verified by the
• Scarce or over labor supply could easily Department of Labor from the time of
be determined actual signing thereof by the parties up
to and including the periods of expiration
Article 34. Prohibited practices. of the same without the approval of the
It shall be unlawful for any individual, entity, Secretary of Labor;
licensee, or holder of authority:
(j) To become an officer or member of the
(a) To charge or accept, directly or Board of any corporation engaged in
indirectly, any amount greater than that travel agency or to be engaged directly
specified in the schedule of allowable or indirectly in the management of a
fees prescribed by the Secretary of travel agency; and
Labor, or to make a worker pay any
amount greater than that actually (k) To withhold or deny travel documents
received by him as a loan or advance; from applicant workers before departure
for monetary or financial considerations
(b) To furnish or publish any false notice or other than those authorized under this
information or document in relation to Code and its implementing rules and
recruitment or employment; regulations.
(c) To give any false notice, testimony,

information or document or commit any MNEMONICS:
act of misrepresentation for the purpose CAFF-IndIE-OFF-SOW
of securing a license or authority under
this Code.

CA – Charge or Accept Chapter III

F – Furnish or publish MISCELLANEOUS PROVISIONS
F – False notice
Ind – Induce or attempt to induce Article 36. Regulatory power.
I – Influence or attempt to influence The Secretary of Labor shall have the power to
E – Engage restrict and regulate the recruitment and
O – Obstruct or attempt to obstruct placement activities of all agencies within the
FF – Fail to File coverage of this Title and is hereby authorized to
S – Substitute or alter issue orders and promulgate rules and
O – Officer or member regulations to carry out the objectives and
W – Withhold or deny implement the provisions of this Title.
Article 35. Suspension and/or cancellation of Article 37. Visitorial Power. The Secretary of
license or authority. Labor or his duly authorized representatives
The Minister of Labor shall have the power to may, at any time, inspect the premises, books of
suspend or cancel any license or authority to accounts and records of any person or entity
recruit employees for overseas employment for covered by this Title, require it to submit reports
violation of rules and regulations issued by the regularly on prescribed forms, and act on
Ministry of Labor, the Overseas Employment violation of any provisions of this Title.
Development Board, or for violation of the
provisions of this and other applicable laws,
General Orders and Letters of Instructions. N.B.
Articles 36 and 37 are delegated exercise of
Grounds for Suspension of License police power of the state.
1. Committing any of the prohibited
practices under Article 34 and other
Procedures for inspection:
pertinent provisions of the Labor Code;
1. Inspection shall be conducted during
2. Engaging in recruitment and deployment
office hours by a team of at least two (2)
in violation of the license or authority
duly authorized inspectors, in the
and other activities without prior
presence of the manager of the office or
authorization from POEA;
any office personnel;
3. Disregard of lawful orders, notices and
2. Inspection reports shall be submitted to
other processes issued by the POEA;
the POEA within 24 hours after
4. Coercing with workers to accept
inspection;
prejudicial arrangements in exchange of
certain benefits that rightfully belongs to
workers; N.B.
5. Withholding of workers’ salaries or Violations found in the course of inspection,
remittances without justifiable reasons; as non-compliance with POEA rules, issuances,
6. Committing other acts similar and directives, etc. shall constitute a ground for the
analogous to the foregoing. imposition of appropriate sanctions or for the
denial of application for issuance and renewal of
Grounds for Revocation of License license.
1. Violation of the conditions of license;
2. Engaging in acts of misrepresentation Article 38. Illegal recruitment.
for the purposes of securing a license or (a) Any recruitment activities, including the
renewal thereof, such a giving false prohibited practices enumerated under
testimonies or falsified documents; Article 34 of this Code, to be undertaken
3. Engaging in recruitment or placement of by non-licensees or non-holders of
workers in jobs harmful to public health authority, shall be deemed illegal and
or morality or to the dignity of the punishable under Article 39 of this
Republic of the Philippines; Code. The Department of Labor and
4. Incurring an accumulated three (3) Employment or any law enforcement
counts of suspension by an agency officer may initiate complaints under this
based on final and executor orders Article.
within the validity of the license.

(b) Illegal recruitment when committed by a

syndicate or in large scale shall be Non-licensee or non-holder of authority
considered an offense involving [It is a] corporation or entity which has not been
economic sabotage and shall be issued a valid license or authority to engage in
penalized in accordance with Article 39 recruitment and placement by the Secretary of
hereof. Labor and Employment, or whose license or
authority has been suspended, revoked, or
Illegal recruitment is deemed committed by cancelled by the POEA or Secretary of Labor.
a syndicate if carried out by a group of three
(3) or more persons conspiring and/or Illegal Recruitment
confederating with one another in carrying 1. SIMPLE or LICENSEE – illegal
out any unlawful or illegal transaction, recruitment committed by a licensee or
enterprise or scheme defined under the first holder of authority against one or two
paragraph hereof. Illegal recruitment is persons only.
deemed committed in large scale if 2. NON-LICENSEE – illegal recruitment
committed against three (3) or more persons committed by any person who is neither
individually or as a group. a licensee nor a holder of authority.
3. SYNDICATED – illegal recruitment
(c) The Secretary of Labor and committed out by a group of three (3) or
Employment or his duly authorized more persons in conspiracy or
representatives shall have the power to confederation with one another;
cause the arrest and detention of such 4. LARGE SCALE or QUALIFIED – illegal
non-licensee or non-holder of authority if recruitment committed against three (3)
after investigation it is determined that or more persons, individually or as a
his activities constitute a danger to group despite the lack of the necessary
national security and public order or will license from the POEA.
lead to further exploitation of job-
seekers. The Secretary shall order the N.B.
search of the office or premises and A person is guilty of illegal recruitment when
seizure of documents, paraphernalia, he gives the impression that he has the power to
properties and other implements used in send workers abroad for work such that the
illegal recruitment activities and the latter were convinced to part with their money in
closure of companies, establishments order to be so employed.
and entities found to be engaged in the
recruitment of workers for overseas Absence of receipt evidencing payment is not
employment, without having been fatal to prosecution’s case of illegal recruitment
licensed or authorized to do so. as long as it is established through credible
Declared unconstitutional in Salazar testimonial evidence that the accused has
v. Achacoso, 183 SCRA 145. involved himself in an act of illegal recruitment.
GENERAL RULE: Illegal recruitment including An employee of a company or corporation

prohibited practices enumerated under Article 34 engaged in illegal recruitment may be held liable
is undertaken by NON-LICENSEES or NON- as principal by direct participation together with
HOLDERS OF AUTHORITY. its employer, if it is shown that he actively and
consciously participated in the recruitment
EXCEPTIONS: process.
(a) School and civic, charitable
organizations or employers for their own
use; Article 39.
(b) Direct hiring by members of the Penalties.
diplomatic corps, international
organizations, and other employers. N.B.
Article 39 repealed by Section 7 of Republic
EXCEPTION TO THE EXCEPTION: Subject to Act No. 8042.
rules and regulations by Secretary of Labor and
Employment.

Penalty: (b) Officers and staff of international

• Ordinary Cases organizations of which the Philippine
o Imprisonment 6 years 1 day government is a member, and their
to 12 years legitimate spouses desiring to work in
o Fine P200,000 – P500,000 the Philippines;
• Economic Sabotage (c) Foreign nationals elected as members
o life imprisonment of Governing Board who do not occupy
o Fine P500,000 – P1,000,000 any other position, but have only voting
• Administrative rights in the corporation;
1. Automatic revocation of license (d) All foreign nationals granted exemption
of authority by law;
2. Forfeiture of cash and surety (e) Owners and representative of foreign
bond principals, whose companies are
Venue: accredited by the POEA, who come to
Criminal Action Regional Trial Court (RTC) the Philippines for a limited period solely
where the offense was committed or where the for the purpose of interviewing Filipino
offended party actually resides at the time of the applicants for employment abroad;
commission of the offense. (f) Foreign nationals who come to the
Philippines to teach, present, and/or
Prescription: conduct research studies in universities
5 years for ordinary cases and colleges as visiting, exchange or
20 years if constituting economic sabotage adjunct professors under formal
agreements between the universities or
colleges in the Philippines and foreign
Title II universities or colleges or between the
EMPLOYMENT OF NON-RESIDENT ALIENS Philippine government; provided that
exemption is on reciprocal basis;
Article 40. Employment permit of non- (g) Resident foreign nationals.
resident aliens.
Any alien seeking admission to the Philippines Penalty:
for employment purposes and any domestic or P10,000 for every year of fraction thereof.
foreign employer who desires to engage an alien
for employment in the Philippines shall obtain an Article 41. Prohibition against transfer of
employment permit from the Department of employment.
Labor. After the issuance of an employment permit, the
alien shall not transfer to another job or change
The employment permit may be issued to a non- his employer without prior approval of the
resident alien or to the applicant employer after Secretary of Labor.
a determination of the non-availability of a
person in the Philippines who is competent, able Any non-resident alien who shall take up
and willing at the time of application to perform employment in violation of the provision of this
the services for which the alien is desired. Title and its implementing rules and regulations
shall be punished in accordance with the
For an enterprise registered in preferred areas provisions of Articles 289 and 290 of the Labor
of investments, said employment permit may be Code.
issued upon recommendation of the government
agency charged with the supervision of said In addition, the alien worker shall be subject to
registered enterprise. deportation after service of his sentence.
Aliens exempted from securing Alien N.B.

Employment Permit Sanctions are provided for under Articles 288
(a) All members of diplomatic services and and 289 of the Labor Code.
foreign government officials accredited
by and with reciprocity arrangement with Article 42. Submission of list. Any employer
the Philippine government; employing non-resident foreign nationals on the
effective date of this Code shall submit a list of

such nationals to the Secretary of Labor within (a) "Apprenticeship" means practical
thirty (30) days after such date indicating their training on the job supplemented by
names, citizenship, foreign and local addresses, related theoretical instruction.
nature of employment and status of stay in the
country. The Secretary of Labor shall then (b) An "apprentice" is a worker who is
determine if they are entitled to an employment covered by a written apprenticeship
permit. agreement with an individual employer
or any of the entities recognized under
Purpose: To monitor the influx of foreign this Chapter.
nationals into the Philippines.
(c) An "apprenticeable occupation"
BOOK TWO means any trade, form of employment
HUMAN RESOURCES DEVELOPMENT or occupation which requires more than
PROGRAM three (3) months of practical training on
the job supplemented by related
Title II theoretical instruction.
NATIONAL MANPOWER DEVELOPMENT
PROGRAM (d) "Apprenticeship agreement" is an
Chapter I employment contract wherein the
NATIONAL POLICIES AND ADMINISTRATIVE employer binds himself to train the
MACHINERY FOR THEIR IMPLEMENTATION apprentice and the apprentice in turn
accepts the terms of training.
Articles 43 to 56
On-the-Job Training – the practical work
Training – is the systematic development of the
experience through actual participation in
attitude/ knowledge/ skill behavior pattern
productive activities given to or acquired by an
required for adequate performance of a given
apprentice.
task.
It may be undertaken:
N.B. (a) In the plant, shop or premises of the
Articles 43 to 56 superseded by Republic Act employer or firm concerned if the
No. 7796 or “The TESDA Act of 1994”. apprenticeship program is organized by
an individual employer or firm;
Title II (b) In the premises of one or several firms
TRAINING AND EMPLOYMENT OF SPECIAL designated for the purpose by the
WORKERS organizer of the program if such
organizer is an association of
Chapter I employers, civic group or the like;
APPRENTICES (c) In the DOLE Training Center (TESDA)
or other public training institutions with
Article 57. Statement of objectives. which the TESDA has made appropriate
This Title aims: arrangements.
(a) To help meet the demand of the
economy for trained manpower; Article 59. Qualifications of apprentice.
(b) To establish a national apprenticeship To qualify as an apprentice, a person shall:
program through the participation of
employers, workers and government (a) Be at least fourteen (14) years of age;
and non-government agencies; and
(c) To establish apprenticeship standards (b) Possess Vocational Aptitude and
for the protection of apprentices. Capacity for Appropriate TEsts; and
Article 58. Definition of Terms. (c) Possess the ability to Comprehend and
As used in this Title: follow Oral and Written instructions.

Trade and industry associations may graduation or for taking government board
recommend to the Secretary of Labor examination.
appropriate educational requirements for
different occupations. Apprenticeship Agreements
• Parents or guardians should sign in
MNEMONICS: behalf of minors
14-VACATE-COW • Copy of agreement should be submitted
to DOLE-TESDA within 5 working days
Aptitude test – shall be provided by employers from execution thereof
to apprenticeship-applicants. If the employer • Doctrine of exhaustion of administrative
does not have adequate facilities, the DOLE remedies applies
may provide for the service free of charge.
Valid Causes of Termination (by employer)
Article 60. Employment of apprentices. (a) Habitual absenteeism
Only employers in the highly technical industries (b) Willful disobedience of company rules or
may employ apprentices and only in insubordination to lawful order of a
apprenticeable occupations approved by the superior
Secretary of Labor and Employment. (As (c) Poor physical condition, physical
amended by Section 1, Executive Order No. disability or prolonged illness which
111, December 24, 1986) incapacitates the apprentice from
working
Highly technical Industry – refers to a trade, (d) Theft or malicious destruction of
business, enterprise, industry or other activity company property and/or equipment
which utilizes the application of advanced (e) Poor efficiency despite warnings given
technology. to the apprentice, and
(f) Engaging in violence and other forms of
N.B. gross misconduct inside the employers
Only employers in highly-technical industries premises.
may enter into apprenticeship agreements
Valid Causes of Termination (by apprentice)
Article 61. Contents of apprenticeship (a) Substandard or deleterious working
agreements. conditions within the employer’s
Apprenticeship agreements, including the wage premises
rates of apprentices, shall conform to the rules (b) Repeated violations by the employer of
issued by the Secretary of Labor and the terms of apprenticeship agreement
Employment. The period of apprenticeship shall (c) Cruel or inhuman treatment by the
not exceed six months. Apprenticeship employer or his subordinates
agreements providing for wage rates below the (d) Personal problems which in the opinion
legal minimum wage, which in no case shall of the apprentice shall prevent him from
start below 75 percent of the applicable a satisfactory performance of his job,
minimum wage, may be entered into only in and
accordance with apprenticeship programs duly (e) Bad health or continuing illness
approved by the Secretary of Labor and
Employment. The Department shall develop Article 62. Signing of apprenticeship
standard model programs of apprenticeship. (As agreement.
amended by Section 1, Executive Order No. Every apprenticeship agreement shall be signed
111, December 24, 1986) by the employer or his agent, or by an
authorized representative of any of the
GENERAL RULE: Wage rate of apprentice shall recognized organizations, associations or
start at 75% of statutory minimum wage for the groups and by the apprentice.
first 6-months.
An apprenticeship agreement with a minor shall
EXCEPTION: May not receive compensation be signed in his behalf by his parent or guardian,
when the on-the-job training is required by the if the latter is not available, by an authorized
school curriculum as a pre-requisite for representative of the Department of Labor, and
the same shall be binding during its lifetime.

Every apprenticeship agreement entered into (b) In the premises of one or several
under this Title shall be ratified by the designated firms in the case of
appropriate apprenticeship committees, if any, programs sponsored by a group or
and a copy thereof shall be furnished both the association of employers or by a civic
employer and the apprentice. organization; or
N.B. (c) In a Department of Labor and

An apprenticeship agreement entered into by Employment training center or other
the parties should be ratified by an appropriate public training institution.
apprenticeship committee.
N.B.
Prior approval from DOLE of the proposed
Article 63. Venue of apprenticeship apprenticeship program is a condition sine qua
programs. non before an apprenticeship agreement can be
Any firm, employer, group or association, validly entered into.
industry organization or civic group wishing to
organize an apprenticeship program may
choose from any of the following apprenticeship Article 65. Investigation of violation of
schemes as the training venue for apprentice: apprenticeship agreement.
Upon complaint of any interested person or
(a) Apprenticeship conducted entirely by upon its own initiative, the appropriate agency of
and within the sponsoring firm, the Department of Labor and Employment or its
establishment or entity; authorized representative shall investigate any
violation of an apprenticeship agreement
(b) Apprenticeship entirely within a pursuant to such rules and regulations as may
Department of Labor and Employment be prescribed by the Secretary of Labor and
training center or other public training Employment.
institution; or
Article 66. Appeal to the Secretary of Labor
(c) Initial training in trade fundamentals in a and Employment.
training center or other institution with The decision of the authorized agency of the
subsequent actual work participation Department of Labor and Employment may be
within the sponsoring firm or entity appealed by any aggrieved person to the
during the final stage of training. Secretary of Labor and Employment within five
(5) days from receipt of the decision. The
N.B. decision of the Secretary of Labor and
A certificate of meritorious service may be Employment shall be final and executory.
awarded by the Secretary of Labor and
Employment or other entities which have N.B.
rendered outstanding service to the cause of Investigation by DOLE or its authorized
apprenticeship. representative, upon filing of complaint or motu
proprio
Appeal of decisions to Secretary of Labor and
Article 64. Sponsoring of apprenticeship Employment
program. Any of the apprenticeship schemes
recognized herein may be undertaken or
sponsored by a single employer or firm or by a Article 67. Exhaustion of administrative
group or association thereof or by a civic remedies.
organization. Actual training of apprentices may No person shall institute any action for the
be undertaken: enforcement of any apprenticeship agreement or
damages for breach of any such agreement,
(a) In the premises of the sponsoring unless he has exhausted all available
employer in the case of individual administrative remedies.
apprenticeship programs;

N.B.
The doctrine requires that where an (c) Where services of foreign technicians
administrative remedy is provided by law, relief are utilized by private companies in
must first be sought by exhausting such apprenticeable trades, said companies
remedies before the courts will act. (Black’s Law are required to set up appropriate
Dictionary) apprenticeship programs.
Article 68. Aptitude testing of applicants. N.B.

Consonant with the minimum qualifications of This is design to discourage employment of
apprentice-applicants required under this aliens, which is admittedly displacing Filipino
Chapter, employers or entities with duly workers of their chance of employment.
recognized apprenticeship programs shall have
primary responsibility for providing appropriate Article 71. Deductibility of training costs.
aptitude tests in the selection of apprentices. If An additional deduction from taxable income of
they do not have adequate facilities for the one-half (1/2) of the value of labor training
purpose, the Department of Labor and expenses incurred for developing the
Employment shall perform the service free of productivity and efficiency of apprentices shall
charge. be granted to the person or enterprise
organizing an apprenticeship program: Provided,
Also see Article 59 That such program is duly recognized by the
Department of Labor and Employment:
Article 69. Responsibility for theoretical Provided, further, That such deduction shall not
instruction. exceed ten (10%) percent of direct labor wage:
Supplementary theoretical instruction to and Provided, finally, That the person or
apprentices in cases where the program is enterprise who wishes to avail himself or itself of
undertaken in the plant may be done by the this incentive should pay his apprentices the
employer. If the latter is not prepared to assume minimum wage.
the responsibility, the same may be delegated to
an appropriate government agency. N.B.
A certificate of recognition shall be issued
N.B. within 5 days from receipt of application of
The normal ratio is 100 hours of theoretical Article 71 of the Labor Code.
instructions for every 2,000 hours of practical
OJT. (Ratio is1:20) Article 72. Apprentices without
compensation.
Article 70. Voluntary organization of The Secretary of Labor and Employment may
apprenticeship programs; exemptions. authorize the hiring of apprentices without
compensation whose training on the job is
(a) The organization of apprenticeship required by the school or training program
program shall be primarily a voluntary curriculum or as requisite for graduation or
undertaking by employers; board examination.
(b) When national security or particular Also see Article 61

requirements of economic development
so demand, the President of the Chapter II
Philippines may require compulsory LEARNERS
training of apprentices in certain trades,
occupations, jobs or employment levels Article 73. Learners defined.
where shortage of trained manpower is Learners are persons hired as trainees in semi-
deemed critical as determined by the skilled and other industrial occupations which
Secretary of Labor and Employment. are non-apprenticeable and which may be
Appropriate rules in this connection shall learned through practical training on the job in a
be promulgated by the Secretary of relatively short period of time which shall not
Labor and Employment as the need exceed three (3) months.
arises; and

Apprentice Learners The learnership agreement shall be subject to

A worker who is Semi-skilled and other inspection by the Secretary of Labor and
covered by a written industrial application Employment or his duly authorized
apprenticeship which are non- representative.
agreement apprenticeable
Terms is more than Maximum term is only
Article 76. Learners in piecework.
three (3) months three (3) months
Practical training Practical training NEED
Learners employed in piece or incentive-rate
supplemented by NOT be supplemented by jobs during the training period shall be paid in
theoretical instruction theoretical instruction full for the work done.
Generally, minimum Generally, minimum age
age of apprenticeship is of learnership is 18 years Also see Article 73
14 years old old
Wage rate is at least Wage rate is at least 75% Article 77. Penalty clause.
75% of statutory of statutory minimum
minimum wage, but wage, but when working
Any violation of this Chapter or its implementing
after 6 months shall be on piece or incentive-rate rules and regulations shall be subject to the
paid the full minimum jobs is entitled of full pay general penalty clause provided for in this Code.
wage after the training for work during training
period period • Fine of not less than P1,000 nor more
than P10,000 or imprisonment of not
Article 74. When learners may be hired. less than 3 months nor more than three
Learners may be employed when no years at the discretion of the court.
experienced workers are available, the
employment of learners is necessary to prevent
curtailment of employment opportunities, and Chapter III
the employment does not create unfair HANDICAPPED WORKERS
competition in terms of labor costs or impair or
lower working standards. Article 78. Definition.
Handicapped workers are those whose earning
Article 75. Learnership agreement. capacity is impaired by age or physical or mental
Any employer desiring to employ learners shall deficiency or injury.
enter into a learnership agreement with them,
which agreement shall include: N.B.
Difference between a handicapped worker
(a) The names and addresses of the and a disabled worker is that the latter is one
learners; whose earning capacity is impaired by mental,
physical or sensory deficiency or injury.
(b) The duration of the learnership period,
which shall not exceed three (3) months;
Article 79.
When employable.
(c) The wages or salary rates of the
learners which shall begin at not less
than seventy-five percent (75%) of the N.B.
applicable minimum wage; and Article 79 superseded by Republic Act No.
7277 or the “Magna Carta for Disabled
(d) A commitment to employ the learners if Persons”.
they so desire, as regular employees
upon completion of the learnership. All
learners who have been allowed or Article 80. Employment agreement.
suffered to work during the first two (2) Any employer who employs handicapped
months shall be deemed regular workers shall enter into an employment
employees if training is terminated by agreement with them, which agreement shall
the employer before the end of the include:
stipulated period through no fault of the
learners. (a) The names and addresses of the
handicapped workers to be employed;

(b) The rate to be paid the handicapped service of another, and workers who are paid by
workers which shall not be less than results as determined by the Secretary of Labor
seventy five (75%) percent of the in appropriate regulations.
applicable legal minimum wage;
As used herein, "managerial employees" refer
(c) The duration of employment period; and to those whose primary duty consists of the
management of the establishment in which they
(d) The work to be performed by are employed or of a department or subdivision
handicapped workers. thereof, and to other officers or members of the
managerial staff.
The employment agreement shall be subject to
inspection by the Secretary of Labor or his duly "Field personnel" shall refer to non-agricultural
authorized representative. employees who regularly perform their duties
away from the principal place of business or
N.B. branch office of the employer and whose actual
Sec.5 Chapter I, Title II of Republic Act No. hours of work in the field cannot be determined
7277 or the “Magna Carta for Disabled Persons” with reasonable certainty.
provides that persons with disability (PWD) are
entitled to equal opportunity for employment (full Exceptions in Applying Book Three Title I
wage and benefits). a) Government employee
b) Managerial employees
Article 81. Eligibility for apprenticeship. c) Officers and members of the managerial
Subject to the appropriate provisions of this staff
Code, handicapped workers may be hired as d) Field personnel
apprentices or learners if their handicap is not e) Members of the family of the employer
such as to effectively impede the performance of who are dependent on him for support
1
job operations in the particular occupations for f) Domestic helpers
which they are hired. g) Persons in the personal service of
another, and
N.B. h) Workers paid by results
Handicapped workers are eligible for
employment as apprentices or learners if their MNEMONICS:
handicap is such that it does not impede the GMO-FM-DPW
performance of job operations in the particular
trade or occupation which is the subject of GENERAL RULE: Government employees are
apprenticeship or learnership contract. governed by Civil Service rules and not by the
Labor Code.
BOOK THREE
CONDITIONS OF EMPLOYMENT EXCEPTION: GOCCs with charters created
under the Corporation Code. (Also see Article 6)
Title I Managerial positions are by virtue of their
WORKING CONDITIONS AND REST special training or expertise, experience and
PERIODS knowledge and for positions which require the
exercise of independent judgment and
Chapter I discretion. They are not subject to rigid
HOURS OF WORK observance of office hours.
Article 82. Coverage. Persons in personal service of another, field

The provisions of this Title shall apply to personnel and members of the family are
employees in all establishments and
undertakings whether for profit or not, but not to
1 Domestic helpers/servants now covered by implication of
government employees, managerial employees, Republic Act No. 10361 otherwise known as Domestic Worker’s
field personnel, members of the family of the Act or “Batas Kasambahay” (enacted January 22, 2013)
employer who are dependent on him for support,
domestic helpers, persons in the personal

similarly situated with persons paid by results Hours worked shall include (a) all time during
in as far as exclusion to Labor Code is which an employee is required to be on duty or
concerned. to be at a prescribed workplace; and (b) all time
during which an employee is suffered or
N.B. permitted to work.
Enumerated above are NOT entitled to
overtime pay, premium pay for rest days and Rest periods of short duration during working
holidays, night shift differential pay, holiday pay hours shall be counted as hours worked.
service incentive leave and service charges.
Instances of working time
• Serving coffee to visitors
Article 83. Normal hours of work. • Messenger playing chess while not yet
The normal hours of work of any employee shall summoned by superior
not exceed eight (8) hours a day. • Travel time in connection with work
• Idle-time pay
Health personnel in cities and municipalities with • Waiting time if integral part of work
a population of at least one million (1,000,000) • Sleeping time, when it is not prejudicial
or in hospitals and clinics with a bed capacity of to performance of work
at least one hundred (100) shall hold regular • Time spent by Union in collective
office hours for eight (8) hours a day, for five (5) bargaining if provided in the CBA
days a week, exclusive of time for meals, except • Attendance in lectures, meetings and
where the exigencies of the service require that trainings when required by employer
such personnel work for six (6) days or forty- • Preliminary and postliminary activities
eight (48) hours, in which case, they shall be for benefit of the employer
entitled to an additional compensation of at least • Rest periods, including coffee breaks,
thirty percent (30%) of their regular wage for from 5-20 minutes
work on the sixth day. For purposes of this • Semestral break of those in the
Article, "health personnel" shall include resident academe (teachers)
physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory Article 85. Meal periods.
technicians, paramedical technicians, Subject to such regulations as the Secretary of
psychologists, midwives, attendants and all Labor may prescribe, it shall be the duty of every
other hospital or clinic personnel. employer to give his employees not less than
sixty (60) minutes time-off for their regular
Article 83 of the Labor Code provides that the meals.
normal working hours of work shall not exceed
eight (8) hours a day: GENERAL RULE: Not less than 60 minutes
• If by nature of employment, an time-off for regular meals.
employee is required to on the job for
only six (6) hours daily, then such period EXCEPTION: At least 20 minutes time-off for
shall be regarded as full working day meals in the following instances:
• It is a management prerogative (a) Where the work is non-manual in nature
whenever the exigencies of the service or does not involve strenuous physical
require, to change the working hours of exertion;
its employees as long as such (b) Where the establishment regularly
prerogative is exercised in good faith operates not less than 16 hours a day;
(Union Carbide Labor Union v. Union Carbide
Phils. Inc., 215 SCRA 554)
(c) In cases of actual or impending
• Compressed Work Week (CWW) may emergencies or there is urgent work to
be adopted by the employer so that less be performed on machineries,
than 6 days a week may be attained equipment or installation to avoid
without reducing the 48 hours per work serious loss which the employer would
week. otherwise suffer, and
(d) Where the work is necessary to prevent
Article 84. Hours worked. serious loss of perishable goods.

Article 86. Night shift differential.

Every employee shall be paid a night shift PAL Employees and Loan Savings, Inc.
differential of not less than ten percent (10%) of (PESALA) v. NLRC
his regular wage for each hour of work G.R. No. 105963. August 22, 1996
performed between ten o’clock in the evening
and six o’clock in the morning. [T]he main question raised before the labor tribunals is whether
the provision on wages in the contract of employment already
included the overtime pay for four (4) working hours rendered six
Exceptions to the application of Art. 86 days a week in excess of the regular eight-hour work. And we
(a) Those specifically excluded under Art. hold that the tribunals below were correct in ruling that the
stipulated pay did not include overtime. Hence, there can be no
82 of the Labor Code undue enrichment in claiming what legally belongs to private
(b) Employees of retail and service respondent.
establishments employing not more than
five (5) workers. Venn Diagram of Pay Schedules
FORMULA:
[Daily Basic Pay] x 110% for each hour*

8
*between 10PM to 6AM the other day
Article 87. Overtime work.

Work may be performed beyond eight (8) hours
a day provided that the employee is paid for the
overtime work, an additional compensation
equivalent to his regular wage plus at least
twenty-five percent (25%) thereof. Work
performed beyond eight hours on a holiday or
rest day shall be paid an additional
compensation equivalent to the rate of the first
eight hours on a holiday or rest day plus at least
thirty percent (30%) thereof.
POINTS TO REMEMBER IN OVERTIME PAY
FORMULA: • Overtime pay must actually be
Overtime, regular work day performed
• Seamen/ tugboat engineers may claim
[Daily Basic Pay] x 125% for each hour only claim for overtime work on actual
8 service rendered on in excess of the
regular work hours
• Right to claim overtime pay is NOT
FORMULA: waivable as it is contrary to morals and
Premium, non-work holiday or rest day public policy
• Principle of estoppels and laches are
[Daily Basic Pay] x 130% for each hour not applicable in right to (extra)
8 compensation of laborers
• Night differential and overtime pay are
Premium – resulting pay on regular work hours independent from each other but may
excluding application of night differentials and be applied in a mutually inclusive
overtime pay. manner
FORMULA: • Overload is different from overtime as
Overtime, non-work holiday or rest day the former is performed during the
regular 8-hour normal work day and
[Daily Basic Pay] x 169% for each hour may be applied only in a mutually
8 exclusive manner

Article 88. Undertime not offset by overtime.

Undertime work on any particular day shall not MNEMONICS:
be offset by overtime work on any other day. CW-PL-UW-WN-CC
Permission given to the employee to go on leave
on some other day of the week shall not exempt CW – country at war
the employer from paying the additional PL – prevent loss (of life and property)
compensation required in this Chapter. UW – urgent work
WN – work is necessary
National Waterworks and Sewerage CC – completion or continuation
Authority v. NWSA Consolidated Unions
G.R. No. L-18939. August 31, 1964 Add’l case (under Sec.10 Rule I, Book III):
There is merit in the decision of respondent court that the
method used by petitioner in offsetting the overtime with the (f) When overtime work is necessary to
undertime and at the same time charging said undertime to avail of favorable weather or
the accrued leave of the employee is unfair, for under such environmental conditions where
method the employee is made to pay twice for his undertime performance or quality of work is
because his leave is reduced to that extent while he was
made to pay for it with work beyond the regular working dependent thereon.
hours. The proper method should be to deduct the
undertime from the accrued leave but pay the employee If the worker willfully refuses to perform overtime
the overtime to which he is entitled. This method also work in any of the above instances provided by
obviates the irregular schedule that would result if the
overtime should be set off against the undertime for that law, he may legally be dismissed (Opinion of the
would place the schedule for working hours dependent on Secretary of Labor, 21 March 1969). It would be
the employee. (underscoring and emphasis supplied) an act of insubordination on the part of the
worker if he unjustifiably refuses to render such
Article 89. Emergency overtime work. work. It would be the highest form of disloyalty
Any employee may be required by the employer against the country if such work is needed to
2
to perform overtime work in any of the following meet a national emergency.
cases:
(a) When the country is at war or when any End of Topic for Midterm Purposes
other national or local emergency has
been declared by the National Assembly NextR
or the Chief Executive; Article 90. Computation of additional
(b) When it is necessary to prevent loss of compensation.
life or property or in case of imminent For purposes of computing overtime and other
danger to public safety due to an actual additional remuneration as required by this
or impending emergency in the locality Chapter, the "regular wage" of an employee
caused by serious accidents, fire, flood, shall include the cash wage only, without
typhoon, earthquake, epidemic, or other deduction on account of facilities provided by the
disaster or calamity; employer.
(c) When there is urgent work to be
performed on machines, installations, or NAWASA ruling above, superseded
equipment, in order to avoid serious loss The American ruling in NAWASA case are not
or damage to the employer or some controlling for the law makes the regular wages
other cause of similar nature; or salary or regular remuneration of employees
(d) When the work is necessary to prevent as the basis for computing the overtime pay.
loss or damage to perishable goods; The terms should be given their ordinary
and meaning.
(e) Where the completion or continuation of
the work started before the eighth hour They do not include cost-of-living allowance,
is necessary to prevent serious longevity pay or other fringe benefits which
obstruction or prejudice to the business items constitute extra pay or additions to the
or operations of the employer. 3
regular or basic pay.
Any employee required to render overtime work

under this Article shall be paid the additional 2 Poquiz, Labor Standards Law, with Notes and Comments, p.191
compensation required in this Chapter. 3 Ibid. p.192

LABOR by Poquiz PDF

Uploaded by

Copyright:

Available Formats

LABOR by Poquiz PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LABOR by Poquiz PDF

Uploaded by

Copyright:

Available Formats

2013 LABOR STANDARDS & SOCIAL LEGISLATION | ARELLANO UNIVERSITY SCHOOL OF LAW

Primary Reference: Taxonomy/ Classification of Labor Laws

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 1

Legal Bases for Labor and Social Legislation

“The State shall promote social justice in all

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 2

Constitutional Rights of Workers Standard of living Cost of living

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 3

Presidential Decree No. 442, AS AMENDED announcement of their adoption in newspapers

A DECREE INSTITUTING A LABOR CODE Implementing Agencies

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 4

Manner of Creation/ Original Charter Test

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 5

(f) To strengthen the network of public placement activities as a private recruitment

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 6

c) Classify registered applicants in Article 17. Overseas Employment

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 7

b) international organizations (e) To gather and analyze information on

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 8

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 9

Article 30. Registration fees. Article 32. Fees to be paid by workers.

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 10

shall be always covered with the appropriate

Article 33. Reports on employment status. (g) To obstruct or attempt to obstruct

(c) To give any false notice, testimony,

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 11

CA – Charge or Accept Chapter III

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 12

(b) Illegal recruitment when committed by a

GENERAL RULE: Illegal recruitment including An employee of a company or corporation

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 13

Penalty: (b) Officers and staff of international

Aliens exempted from securing Alien N.B.

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 14

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 15

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 16

N.B. (c) In a Department of Labor and

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 17

Article 68. Aptitude testing of applicants. N.B.

(b) When national security or particular Also see Article 61

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 18

Apprentice Learners The learnership agreement shall be subject to

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 19

Article 82. Coverage. Persons in personal service of another, field

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 20

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 21

Article 86. Night shift differential.

[Daily Basic Pay] x 110% for each hour*

Article 87. Overtime work.

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 22

Article 88. Undertime not offset by overtime.

Any employee required to render overtime work

Notes By: ENGR. JESSIE A. SALVADOR,MPICE http://twitter.com/engrjhez Page 23

You might also like