CRUZ, LOURDES ERIKA C. ATTY.

PANGANIBAN
2019-0753 LABOR REVIEW | 6:00-9:00PM | WEDNESDAY

ASSIGNMENT
002 – 2021
LABOR LAW REVIEW
Atty. Porfirio DG. Panganiban, Jr.

1. Explain thoroughly how employer employee relationship is established?

The conventional tests in determining the existence of employer-employee

relationship are as follows:
A. Selection and engagement of employee;
B. Payment of wages and salaries;
C. Exercise of the power of dismissal; or
D. Exercise of then power to control the employee’s conduct.

The power to control employee’s conduct, commonly known as the “control test”
or the “means and methods test” is the controlling one in our jurisdiction. It
addresses the issue whether the employer controls or has reserved the right to
control the employee not only as to the result of the work to be done but also as to
the means and methods by which the same is to be accomplished. Stated
otherwise, an employer-employee relationship exists where the person for whom
the services are performed reserves the right to control not only the end to be
achieved but also the means to be used in reaching such end. Absent the power
to control the employee with respect to the means and methods by which work
was to be accomplished will only mean that there is no employer-employee
relationship. Also, the existence of employer-employee relationship is determined
by law and not by contract

2. Explain and provide all the exempted employees from the coverage of Art.
82 AND provide the basis and reason for their exemptions AND provide
illustrations for each.

Art. 82 of the Labor Code provides that the provisions relating to working conditions
and rest periods shall apply to employees in all establishments and undertakings
whether for profit or not, but not to the following:
a. Government Employees – the terms and conditions of their employment are
governed by the Civil Service Law
b. Managerial Employees – They are not covered by this article because they
are employed by reason of their special training, experience, or knowledge.
Therefore, the value of their work cannot be measured in terms of hours.
c. Field Personnel – They are non agricultural employees who regularly perform
their duties away from the principal place of business or branch office of the
 employer. Their actual work hours cannot be determined with reasonable
certainty.
d. Members of the family of the employer who are dependent on him for
support – They are not governed by this Title because the amounts given by
the employer by way of support may far exceed the benefits to which the
employee is entitled under provisions of law
e. Domestic helpers – the terms and conditions of employment are governed by
the provisions of RA 10361 or the Kasambahay Law
f. Persons in the personal service of another - Their actual work hours cannot
be determined with reasonable certainty.
g. Workers who are paid by results – They are not covered because their work
is not measured in accordance with the time they spent to complete the work
but rather measured by piece or by task.

3. Explain the principles in determining hours worked?

Under Article 84 of the Labor Code, hours worked shall include all time during
which an employee is required to be on duty or to be at a prescribed workplace;
and all time during which an employee is suffered or permitted to work.

Rest periods of short duration during working hours shall be counted as hours
worked.

4. Explain the Principle of Co-Determination and its effects on employees

The principle of co-determination refers to the right of workers to participate in

policy and decision-making processes directly affecting their rights and benefits,
without intruding into matters of management prerogatives. It is a joint
responsibility of the employer and the employee in such that it gives an employee
a voice in the determination of the terms and conditions of employment.

5. Provide your insights with following concept: “Shrinking economic

activity vs. Widening Employment Inequality” Explain exhaustively.

There are two perceptions to this concept. Some would say that inequality
promotes investment and economic growth since it will enable the employers to
channel their resources saved from paying the law mandated wage of their
employees to other ventures. For some, a better wealth redistribution can indeed
promote sustainable economic growth which would generate a relative
improvement in work opportunities for lower income groups and for lower-income
countries.

6. Explain the following principles related to Labor Law:

a. No Work No Pay Principle
If there is no work performed by the employee there can be no wage or pay
unless the laborer was able, willing and ready to work but was illegally locked out,
suspended or dismissed, or otherwise illegally prevented from working. It would
neither be fair nor just to allow recovery of something they have not earned and
could not have earned because they did not render services during the stated
period.
b. Fair Days Wage For a Far Day’s Labor
Similar to the no work no pay principle, if there is no work performed by the
employee there can be no wage or pay, unless of course, the laborer was able,
willing and ready to work but was illegally locked out, dismissed or suspended. It
is hardly fair or just for an employee or laborer to fight or litigate against his
employer on the employer's time.

c. Last In, First Out Principle (LIFO RULE)

This rule indicates that as between two or more employees affected by a
retrenchment program, the last one employed will be the first to go; seniority of the
ones hired earlier therefore prevails.

d. One Union One Company Policy

Instead of forming another bargaining unit, the law requires them to be members
of the existing one. The ends of unionism are better served if all the rank-and-file
employees with substantially the same interests and who invoke their right to self-
organization are part of a single unit so that they can deal with their employer with
just one and yet potent voice. The employees' bargaining power with management
is strengthened thereby. Proliferation of unions in an employer unit is discouraged
as a matter of policy unless compelling reasons exist which deny a certain and
distinct class of employees the right to self-organization for purposes of collective
bargaining.

e. Equal Pay for Equal Work Principle

The persons who work with substantially equal qualification, skill, effort and
responsibility, under similar conditions, should be paid similar salaries

f. Management Prerogative
Under the doctrine of management prerogative, every employer has the inherent
right to regulate, according to his own discretion and judgment, all aspects of
employment, including hiring, work assignments, working methods, the time, place
and manner of work, work supervision, transfer of employees, lay-off of workers,
and discipline, dismissal, and recall of employees. The only limitations to the
exercise of this prerogative are those imposed by labor laws and the principles of
equity and substantial justice.
 g. Contractual Prerogative
This pertains to the management’s prerogative of contracting out of services.

7. Explain the concept in labor law of “NON-DIMUNITION OF BENEFITS”.

Under Art. 100 of the Labor Code, there is explicit prohibition on te part of the
employers to eliminate or reduce the benefits received by their employees
provided such benefits are based on the following: 1) express policy; 2) written
contract; or 3) company practice.

Generally, employees have a vested right over existing benefits voluntarily granted
to them by their employer. It cannot be taken back or reduced unilaterally by the
employer except when there is correction of errors, negotiated benefits, wage
order compliance, benefits on reimbursement basis, reclassification of position,
contingent benefits of conditional bonus and productivity incentives. Non-
diminution refers to reducing benefits that are discretionarily given to employees,
which cannot be withdrawn as they are given based on contract or practice that
ripened over time into a policy. So when due to legitimate business reasons,
management reduces work via rotation, four- or three-day work weeks, or
shortened work hours, such is not invalid diminution.

8. Provide the instances when an employee may be required to render

overtime work?

Under Art. 89 of the Labor Code, any employee may be required by the employer
to perform overtime work in any of the following cases:
a. When the country is at war or when any other national or local emergency has
been declared by the National Assembly or the Chief Executive;
b. When it is necessary to prevent loss of life or property or in case of imminent
danger to public safety due to an actual or impending emergency in the locality
caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity;
c. When there is urgent work to be performed on machines, installations, or
equipment, in order to avoid serious loss or damage to the employer or some
other cause of similar nature;
d. When the work is necessary to prevent loss or damage to perishable goods; and
e. Where the completion or continuation of the work started before the eighth hour
is necessary to prevent serious obstruction or prejudice to the business or
operations of the employer.
Any employee required to render overtime work under this

9. Provide the instances when an employee may be required to render works

on his rest day?
 Under Art. 92 of the Labor Code, an employer may require his employees to work
on any day:

a. In case of actual or impending emergencies caused by serious accident,

fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to
prevent loss of life and property, or imminent danger to public safety;
b. In cases of urgent work to be performed on the machinery, equipment, or
installation, to avoid serious loss which the employer would otherwise
suffer;
c. In the event of abnormal pressure of work due to special circumstances,
where the employer cannot ordinarily be expected to resort to other
measures;
d. To prevent loss or damage to perishable goods;
e. Where the nature of the work requires continuous operations and the
stoppage of work may result in irreparable injury or loss to the employer;
and
f. Under other circumstances analogous or similar to the foregoing as
determined by the Secretary of Labor and Employment.

10. Provide the recognized principles in compensating employees for work

done on their rest day, Holidays or on a Sunday?

Article 93 of the Labor Code provides that where an employee is made or permitted
to work on his scheduled rest day, he shall be paid an additional compensation of
at least thirty percent (30%) of his regular wage. An employee shall be entitled to
such additional compensation for work performed on Sunday only when it is his
established rest day.

When 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 thirty percent (30%) of his regular wage for work performed
on Sundays and holidays.

Work performed on any special holiday shall be paid an additional compensation of

at least thirty percent (30%) of the regular wage of the employee. Where such
holiday work falls on the employee’s scheduled rest day, he shall be entitled to an
additional compensation of at least fifty per cent (50%) of his regular wage.

Where the collective bargaining agreement or other applicable employment

contract stipulates the payment of a higher premium pay than that prescribed under
this Article, the employer shall pay such higher rate.
11. Explain the following terms, in relation to hours worked and if
compensable; to wit:

a. Waiting Time
Waiting time spent by an employee shall also be considered as working time if
waiting is an integral part of his work or the employee is required or engaged by
the employer to wait.

b. Subject to Call
An employee who is required to remain on call in the employer’s premises or so
close thereto that he cannot use the time effectively and gainfully for his own
purpose shall be considered as working while on call. If he can use his waiting time
for his own purpose, then it is not compensable

c. Brief Rest Periods

Rest periods or coffee breaks running from 5-20 minutes shall be considered
compensable working time.

d. Travel Time
Travel from home to office and vice-versa is not compensable. However, when the
time spent by an employee in travel as part his principal acticity and the travel that
keeps an employe away from home overnight is cmpensable and must be counted
as hours worked.

e. Lectures, Meetings, Training Programs

It is not counted as working time if: 1) the attendance is outside of the employee’s
working hours; 2) if the attendance is voluntary; and 3) if the employee does not
perform any productive work during such attendance.

f. Necessary Work
Pertains to necessary work to prevent loss of life or property or in case of imminent
danger to public safety due to an actual or impending emergency in the locality
caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity; to prevent loss or damage to perishable goods; and the
completion or continuation of the work started before the eighth hour is necessary
to prevent serious obstruction or prejudice to the business or operations of the
employer.

g. Brownouts/ Work Interruptions

Brownouts of short durations but not exceeding 20minutes shall be treated as
worked or compensable hours whether used productively by the employees or not.
Brownouts running for more than 20minutes may not be treated as hours worked
provided any of the following conditions are present: 1) the employees can leave
their workplace or go elsewhere whether inside or outside the work premises; or
2) the employees can use the time effectively for their own interest
 h. Meal Periods
Art. 85 of the Labor Code provides that meal periods should not be less than 60
minutes. It is non compensable except where during the so called meal periods,
the laborers are required to stand by for emergency work, or said meal hour is not
one of complete rest, such period is considered overtime or hours worked. It may
be less than 60 minutes but not less than 20 minutes and the shortened meal
time must be with full pay under the following circumstances:1) Where the work is
non manual work in nature or does not involve strenuous physical exertion; 2)
Where the establishment regularly operated not less than 16 hours a day; 3) In
cases of actual or impending emergencies or there is urgent work to be performed
on machineries, equipment or installations to avoid serious loss which the
employer would otherwise suffer; or 4) Where the work is necessarily to prevent
serious loss of perishable goods

i. Hours of worked by part-time workers

The wage and benefits of part-time workers should be in proportion to number of
hours worked.

j. Hours of work of hospital and clinic personnel

All hospitals and clinics, including those with a bed capacity of less than one
hundred (100) which are situated in cities or municipalities with a population of one
million or more; and all hospitals and clinics with a bed capacity of at least one
hundred (100), irrespective of the size of the population of the city or municipality
where they may be situated.

Generally, regular office hours shall be 8 hours a day for 5 days a week or 40 hours
a week, exclusive of meal times except in case of exigencies, they may work for 6
days or 48 hours, but they shall be entitled to an additional compensation of at
least 30% of their regular wage for work performed on the sixth day.

12. Define the following terms.

a. Work Day
It is a day on which work is performed and it is compensable

b. Calendar Day
It means everyday on the calendar, including weekends and public holidays.

c. Overtime
It is the work performed beyond 8 hour a day.

d. Undertime
Stopping of work prior to completion of the normal 8-hour daily work.
 e. Premium Pay
It refers to the additional compensation required by law to be paid for work
performed within the regular 8 hours on non-working days such as rest days or
special days.

f. Qualified Premium Pay

Qualified wages are any wages the employer pays or incur for services
performed by a qualified employee. Qualified wages also include any qualified
employee's health insurance benefits that are paid or incurred on behalf of a
qualified employee. The Philippine social security system covers old age,
disability, death, sickness and maternity. Private employees are covered under
the state- run pension fund, the Social Security System (SSS), while public
sector employees and military personnel are covered by the Government

h. Overtime Pay
It is an additional compensation fo work performed beyond 8 hours within the
worker’s 24-hour workday regardless whether the work covers 2 calendar days.

i. Work Week
It refers to the days or hours that a person spends working in a week.

j. Reduction of eight-hour working day

The employers cannot reduce wages as a result of the reduction of the work day.

k. Shortening of work week

Under a compressed workweek scheme, the normal workweek is reduced less
than 6 days but the total number of normal hours per week remains at 48 hours.
The normal workday is increased to more than 8 hours without corresponding
overtime premium. The total number of required work hours per week serves the
basis for what’s considered as normal work hours. Work performed beyond eight
hours or number of hours under a compressed workweek scheme on a holiday or
rest day shall be paid an additional compensation equivalent to the rate of the first
eight hours hours or number of hours under a compressed workweek scheme on
a holiday or rest day, plus at least thirty percent (30%) thereof.

13. State ALL the recognized REGULAR HOLIDAYS in labor laws.

The list of regular holidays under Executive Order 292 as amended by Republic Act
9492 are as follows:
a. New Year’s Day – January 1
b. Maundy Thursday – movable date
c. Good Friday – movable date
d. Araw ng Kagitingan – Monday nearest April 9
e. Labor Day – Monday nearest May 1
f. Independence Day – Monday nearest June 12
 g. National Heroes’ Day – Last Monday of August
h. Bonifacio Day – Monday nearest November 30
i. Christmas Day – December 25
j. Rizal Day – Monday nearest December 30
k. Eid’l Fitr – movable date
l. Eid’l Adha – movable date
m. The date set for holding the regular national election

14. Explain the difference and legal significance of a SPECIAL HOLIDAY from
a REGULAR HOLIDAY.

For a regular holiday, an employee is compensated even if he did not work subject
to certain conditions. For special holidays, the employee is not entitled to a pay if
he did not work. Regular holidays are only those 12 days enumerated in the Labor
Code and the special laws while special holidays are not exclusive since a law or
ordinance may provide for other special holidays. If worked, the rate is 200% of
the regular rate on a regular holiday while on a special holiday, the rate is 130% of
the regular rate if worked.

15. Explain the significance and legal ramification of A SPECIAL WORKING

HOLIDAY from A SPECIAL NON-WORKING HOLIDAY.

For special working days, the work performed of an employee is entitled only t his
basic rate. No premium pay is required since work performed on said days is
considered work on ordinary working days. On the other hand, special non-working
dayy, an employee shall not be paid unless there is a favorable company policy,
practice or collective bargaining agreement granting payment of wages on special
days even if unworked. If the employee works, the employe shall be paid 100% of
his regular salry plus 30% of the daily rate. If the employee works more than 8
hours, he shall be paid additional 30% of his hourly rate on said day.

16. What is the legal consequence of a declared A SPECIAL NON-WORKING

HOLIDAY to a government employee? To a privately engaged employee?

Art. 82 of the Labor Code provides that the provisions relating to working conditions
and rest periods shall apply to employees in all establishments and undertakings
whether for profit or not, but not to Government Employees because the terms and
conditions of latter’s employment are governed by the Civil Service Law.

17. What is the legal consequence of a declared A SPECIAL WORKING

HOLIDAY to a government employee? To a privately engaged employee?
 Art. 82 of the Labor Code provides that the provisions relating to working conditions
and rest periods shall apply to employees in all establishments and undertakings
whether for profit or not, but not to Government Employees because the terms and
conditions of latter’s employment are governed by the Civil Service Law.

18. Explain and State the purpose/s of the RA 11058? Discuss Department
Order 198-18?

With the enactment of Republic Act No. 11058, Filipino workers are given better protection
in the workplace. This law ensures safer workplaces by requiring employers to provide
complete safe work procedures, information dissemination about work-related hazards,
safety and health training, and protective equipment. Workers are also encouraged to
have a better understanding of the risks that come with their occupations, to know that
they have the right to refuse unsafe work, to report accidents, and to participate in the
safety and health program of their employers.

This Act shall apply to all establishments, projects, sites, including Philippine Economic Zone
Authority (PEZA) establishments, and all other places where work is being undertaken in all
other places where work is being undertaken in all branches of economic activity, except in
public sector.

The Secretary of Labor and Employment shall issue the number of employees, and nature of
operations, and the risk or hazard involved.

Department Orer 198-18 provides for the implementing rules and regulations of RA 11058
entitled “An Act Stregthening Complaince with Occupational safety and Health Standards
and Providing Penalties for Violations thereof.”

19. Explain the aim and reason of RA 11058 as enunciated by Department of

Labor and Employment DOLE under the Labor Code of the Philippines.

The state affirms labor as a primary social and economic force and a safe and
healthy workforce is an integral aspect fo nation building.

The State shall ensure a safe and healthful workplace for all working people by
affording them full protection against all hazards in their work environment. It shall
ensure that the provisions of the Labor Code of the Philippines, all domestic laws,
and internationally-recognized standards on occupational safety and health are
being fully enforced and complied with by the employers, and it shall provide
penalties for any violation thereof.

The State shall protect every worker against injury, sickness or death through safe
and healthful working conditions thereby assuring the conservation of valuable
manpower resources and prevention of loss or damage to lives and properties
 consistent with national development goals, and with the State's commitment to
the total development of every worker as a complete human being.

The State, in protecting the safety and health of the workers, shall promote strict
but dynamic, inclusive, and gender-sensitive measures in the formulation and
implementation of policies and programs related to occupational safety and health.

20. Explain the Philippine OSH standard? How would this affect local
Employers and Employees?

Covered workplaces through the Health and Safety Commit- tee (HSC), shall
develop and implement a suitable OSH Pro- gram following the DOLE-prescribed
format.

OSH Program shall be submitted and considered approved upon stamped-

received by concerned DOLE-Regional Office or Field Office. Pre-approved
program shall be validated during inspection and may be modified by DOLE as
necessary, based on existing laws, rules and regulations.

The HSC shall review and evaluate the OSH Program at least once a year or as
necessary. A revised copy of the program shall be submitted to DOLE.

A suitable Construction Safety and Health Program (CHSP) specific for each
construction project shall be submitted to concerned DOLE-Regional Office or
Field Office for its approval prior to start of the project.

The total cost of implementing OSH Programs shall be an integral part of the
company’s operations cost.

There shall be an established package of incentives under such riles and

regulations as may be promulgated by the DOLE to qualified employers to
recognize their efforts toward ensuring compliance with OSH and general labor
standards such as OSH training packages, additional protective equipment,
technical guidance, recognition awards and other similar incentives.

21. Provide the recognized Duties of Employers and Available rights of

Employees under RA 11058.

The duty of the employer is to provide a safe and healthy workplace through the
following, among others:
A. Capacity building of all workers including mandatory trainings;
B. Provision of information on OSH;
C. Use of devices/equipment with approved industry standards;
D. Compliance with all the requirements of the OSH Standards; and
 E. Provide appropriate DOLE tested and approved PPEs FREE of charge to
the workers.

The rights of the workers shall include the following:

A. To know the different types of hazards in the workplace;
B. Be provided with training, education and orientation;
C. To refuse unsafe work without threat or reprisal from the employer in cases
of imminent danger. Affected workers may be temporarily assigned to other
work areas;
D. To report accidents and dangerous occurrences to DOLE-ROs and other
government agencies in the most convenient way; and
E. Workers shall be free from retaliation for reporting any accident;

22. What is OSHA in the Philippines?

OSHA stands for Occupational Safety and Health Act. Such act was passed by
Congress to ensure safe and healthful working conditions for working men and
women by setting and enforcing standards and by providing training, outreach,
education and assistance.

23. Explain what is meant BOSH and COSH?

BOSH stands for Basic Occupational Safety and Health Training. one of the
mandatory 40-hour training courses required for safety officers under Rule 1030
of the Occupational Safety and Health Standards (OSHS). It aims to equip
participants with the basic knowledge and skills on identifying safety, health, and
environmental hazards; determining appropriate control measures; and
developing and implementing OSH policies and programs.

COSH stands for Construction Safety and Health Training. It is one of the
mandatory 40-hour training courses required for safety officers working in the
construction industry under Rule 1030 of the Occupational Safety and Health
Standards (OSHS) and the DOLE Department Order No. 13, s. 1998: Guidelines
Governing Safety and Health in the Construction Industry. This training aims to
equip participants with the basic knowledge and skills in performing safety audits,
assessments and analysis of hazards and risks in the construction industry;
determining appropriate control measures; and developing and implementing OSH
policies and programs.

24. Provide the penalties imposed in case of violation of RA 11058

Any willful failure or refusal of an employer, contractor or subcontractor to comply

with the following OSH standards or with a compliance order issued by Secretary
of Labor and Employment or his/her representative shall be penalized of the
administrative fines, as follows:
 Prohibited Acts and its Corresponding Penalties
o Registration of establishment to DOLE - P20,000
o Provision of job safety instruction or orientation prior to work - P20,000
o Provision of worker’s training (first aid, mandatory workers training,
mandatory OSH training for safety officers and health personnel) - P25,000
o Provision of safety signage and devices - P30,000
o Provision of medical supplies, equipment and facilities - P30,000
o Submission of reportorial requirements as prescribed by OSH standards -
P30,000
o Provision of safety officer and/or OH personnel - P40,000
o Provision of certified personnel or professional required by the OSH
standards - P40,000
o Establishment of a safety and health committee - P40,000
o Formulation and implementation of a comprehensive safety and health
program - P40,000
o Provision of information on hazards and risk (absence of chemical safety
data sheet, no written SOP in materials handling, lifting etc. no permitting
system for confined spaces/hot works, no lock-out/tag-out system etc.) -
P40,000
o Provision of sanitary and welfare facilities - P40,000
o Use of approved or certified devices and equipment for the task - P50,000
o Provision of PPE or charging of provided PPE to workers - P50,000
o Compliance with DOLE issued WSO - P50,000
o Compliance to other OSH standards - P40,000

Repeated violation of the same prohibited act shall be penalized of the

corresponding fine plus 50% for every in- stance of repeat violation

When the violation exposes the worker to death, serious injury or serious
illness, the imposable penalty shall be P100,000.

Additional P100,000 fine for refusal to access the workplace, refusal to provide
or allow access to records, obstruct con- duct of investigation,
misrepresentation and making retaliatory measures such as termination,
refusal to pay, reducing wages and benefits or discriminates any worker who
has given information relative to inspection

25. Explain the safety and Health Training requirements provided by RA 11058

Under Sec. 16 of RA 11058, the following requirements shall be observed in

relation to safety and health training:
 A. All safety and health personnel shall undergo the mandatory training on
basic occupational safety and health for safety officers as prescribed by
DOLE.
B. All workers shall undergo the mandatory eight (8) hours safety and health
seminar as required by the DOLE which shall include a portion on joint
employer-employee orientation.
C. All personnel engaged in the operation, erection and dismantling of
equipment and scaffolds, structural erections, excavations, blasting
operations, demolition, confined spaces hazardous chemicals, welding, and
flame cutting shall undergo specialized instruction and training on the said
activities.

26. Explain exhaustively the liability coverage of RA 11058.

Under Sec. 21 of RA 11058, it provides that the employer, project owner, general
contractor, contractor or subcontractor, if any, and any person who manages,
controls or supervises the work being undertaken shall be jointly and solidarily
liable for compliance with this Act.