Weekly Rest Periods
caused by serious accident, fire, flood, typhoon,
a. Coverage:
Article 91 as last updated by PD 850 (1975)
Right to weekly rest day.
a. It shall be the duty of every employer, whether
operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four
consecutive hours after every six consecutive normal
work days.
b. The employer shall determine and schedule the
weekly rest day of his employees, subject to
collective agreement and to such rules and
regulations as the Secretary of Labor may provide.
However, the employer shall respect the preference
of employees as to their weekly rest day when such
preference is based on religious grounds.
RULE III
Weekly Rest Periods
SECTION 1. General statement on coverage. This Rule
shall apply to all employers whether operating for profit or
not, including public utilities operated by private persons.
b. Employee preference
SECTION 4. Preference of employee. The preference of the
employee as to his weekly day of rest shall be respected by
the employer if the same is based on religious grounds. The
employee shall make known his preference to the employer in
writing at least seven (7) days before the desired effectivity of
the initial rest day so preferred.
c. Work on a rest day
Article 92 as last updated by PD 850 (1975)
When employer may require work on a rest day.
The employer may require his employees to work on any day:
a. In case of actual or impending emergencies caused
by serious accidents, 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 case 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.
SECTION 6. When work on rest day authorized. An
employer may require any of his employees to work on his
scheduled rest day for the duration of the following
emergencies and exceptional conditions:
(a) In case of actual or impending emergencies
earthquake, epidemic or other disaster or calamity,
to prevent loss of life or property, or in cases of force
majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on
machineries, equipment or installations 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 serious loss of perishable goods;
(e) Where the nature of the work is such that the
employees have to work continuously for seven (7)
days in a week or more, as in the case of the crew
members of a vessel to complete a voyage and in
other similar cases; and
(f) When the work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work is dependent thereon.
No employee shall be required against his will to work on his
scheduled rest day except under circumstances provided in
this Section: Provided, However, that where an employee
volunteers to work on his rest day under other circumstances,
he shall express such desire in writing, subject to the
provisions of Section 7 hereof regarding additional
compensation.
d. Compensation for rest day
Article 93 as last updated by PD 850 (1975)
Compensation for rest day, Sunday or holiday work.
a. 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 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.
e. Compensation for Sunday
b. When the nature of the work of the employee is such
that he has no regular work days, and no regular rest
days can be scheduled, he shall be paid additional
compensation of at least thirty percent of his regular
wage for work performed on Sundays and holidays.
f. Compensation for special day:
c. Work performed on any legal holiday shall be paid an
additional compensation of at least thirty percent 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 percent of his regular
wage.
d. 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.
Regular Holidays
EXECUTIVE ORDER NO. 203 June 30, 1987
PROVIDING A LIST OF REGULAR HOLIDAYS AND SPECIAL
DAYS TO BE OBSERVED THROUGHOUT THE PHILIPPINES
AND FOR OTHER PURPOSES
Sec. 1. Unless otherwise modified by law, order or
proclamation, the following regular holidays and special days
shall be observed in this country:
Sec. 2. Henceforth, the terms "legal or regular holiday" and
"special holiday", as used in laws, orders, rules and
regulations or other issuances shall now be referred to as
"regular holiday" and "special day", respectively.
the lunar calendar, or upon Islamic astronomical calculations,
whichever is possible or convenient.
Section 2. Section 26, Chapter 7 of Executive Order No 292,
otherwise known as the Revised Administrative Code of 1987
is hereby amended to read as follows:
Sec. 26. Regular Holidays and Nationwide Special Days (1)
Unless otherwise modified by law, order or proclamation, the
following regular holidays and special days shall observed in
the country.
Provided, however That Eidul Adha shall be celebrated as a
regional holiday in Autonomous Region in Muslim Mindanao."

Republic Act No. 9177 Section 3. The implementation of this Act shall be under the
supervision of the Office of Muslim Affairs (OMA) which shall
AN ACT DECLARING THE FIRST DAY OF SHAWWAL, THE promulgate the rules and regulations pursuant to the
TENTH MONTH OF THE ISLAMIC CALENDAR, A provisions of this Act. The Grand Mufti may submit his
NATIONAL HOLIDAY FOR THE OBSERVANCE OF EIDUL suggestion relative to said rules and regulations for
FITR AND THE TENTH DAY OF ZHULD HIJJA. THE consideration by the Office of Muslim Affairs (OMA)
TWELFTH MONTH OF THE ISLAMIC CALENDAR, A
REGIONAL HOLIDAY IN THE AUTOMNOMOUS REGION IN
MUSLIM MINDANAO (ARMM) FOR THE OBSERVANCE
OF EIDUL ADHA, AMENDING FOR THE PURPOSE
5. Service Incentive Leave
SECTION 26, CHAPTER 7 OF EXECUTIVE ORDER NO. 292.
OTHERWISE KNOWN AS THE ADMINISTRATIVE CODE OF
6. Service Charges
1987, AND FOR OTHER PURPOSES.

a) Regular Holidays
Be
New Year's Day - January 1 it

Maundy Thursday - Movable Date A. Regular Holidays

New Year's Day January
Good Friday - Movable Date
Maundy Thursday Movable date
Eidul Fitr - Movable Date Good Friday Movable date

Araw ng Kagitingan Araw ng Kagitingan (Bataan and April 9

(Bataan and Corregidor - April 9 Corregidor Day)
Day) Labor Day May 1
Independence Day June 12
Labor Day - May 1
National Heroes Day Last Sunday of August
Independence Day - June 12 Bonifacio Day November 30
- Last Sunday of Christmas Day December 25
National Heroes Day
August Rizal Day December 30
Bonifacio Day - November 30 B. Nationwide Special Days
All Saints Day November 1
Christmas Day - December 25
Last Day of the Year December 31
Rizal Day - December 30

b) Nationwide Special Holidays

All Saints Day - November 1

Last Day of the Year - December 31 a. Coverage

enacted by the Senate and House of Representatives of the

Philippines in Congress assembled. RULE IV
Holidays with Pay
Section 1. The first day of Shawwal, the tenth month of the
Islamic calendar, is hereby declared a national holiday for the
observance of Eidul Fitr, and the tenth day of Zhul Hijja, the SECTION 1. Coverage. This rule shall apply to all
twelfth month of the Isalamic calendar is hereby delared a employees except:
regional holiday in the Autonomous Region in Muslim
Mindanao (ARMM) for the observance of Eidul Adha. Eidul
(a) Those of the government and any of the political
Fitr is the first day marking the end of the thirty (30)-day
fasting period of Ramadhan Eidul Adha is a tenth day in the subdivision, including government-owned and
month of Hajj or Islamic Pilgrimage to Mecca wherein Muslims controlled corporation;
pay homage to Abraham's supreme act of sacrifice and
signifies mankind's obedience to God. (b) Those of retail and service establishments
regularly employing less than ten (10) workers;
The approximate date of these Islamic holidays may be
determined in accordance with the Islamic calendar (Hijra) or
 (c) Domestic helpers and persons in the personal
service of another;
(d) Managerial employees as defined in Book Three
of the Code;
(e) Field personnel and other employees whose time
and performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are
paid a fixed amount for performing work irrespective
of the time consumed in the performance thereof.
b. Holiday Pay
Chapter III
Holidays and Service Leaves
Article 94 as last updated by PD 850 (1975)
Right to holiday pay.
a. Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service
establishments regularly employing less than ten
workers;
b. The employer may require an employee to work on
any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate;
c. As used in this Article, "holiday" includes New Year's
Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, the fourth
of July, the thirtieth of November, the twenty-fifth
and the thirtieth of December, and the day
designated by law for holding a general election.
SECTION 4. Compensation for holiday work. Any employee
who is permitted or suffered to work on any regular holiday,
not exceeding eight (8) hours, shall be paid at least two
hundred percent (200%) of his regular daily wage. If the
holiday work falls on the scheduled rest day of the employee,
he shall be entitled to an additional premium pay of at least
30% of his regular holiday rate of 200% based on his regular
wage rate.
c. Overtime pay on a holiday
SECTION 5. Overtime pay for holiday work. For work
performed in excess of eight hours on a regular holiday, an
employee shall be paid an additional compensation for the
overtime work equivalent to his rate for the first eight hours
on such holiday work plus at least 30% thereof.
Where the regular holiday work exceeding eight hours falls on
the scheduled rest day of the employee, he shall be paid an
additional compensation for the overtime work equivalent to
his regular holiday-rest day for the first 8 hours plus 30%
thereof. The regular holiday rest day rate of an employee shall
consist of 200% of his regular daily wage rate plus 30%
thereof.
d. Absences
SECTION 6. Absences. (a) All covered employees shall be
entitled to the benefit provided herein when they are on leave
of absence with pay. Employees who are on leave of absence
without pay on the day immediately preceding a regular
holiday may not be paid the required holiday pay if he has not
worked on such regular holiday.
(b) Employees shall grant the same percentage of
the holiday pay as the benefit granted by competent
authority in the form of employee's compensation or
social security payment, whichever is higher, if they
are not reporting for work while on such benefits.
(c) Where the day immediately preceding the holiday
is a non-working day in the establishment or the
scheduled rest day of the employee, he shall not be
deemed to be on leave of absence on that day, in
which case he shall be entitled to the holiday pay if
he worked on the day immediately preceding the
non-working day or rest day.
e. Holiiday during shutdown
SECTION 7. Temporary or periodic shutdown and temporary
cessation of work. (a) In cases of temporary or periodic
shutdown and temporary cessation of work of an
establishment, as when a yearly inventory or when the repair
or cleaning of machineries and equipment is undertaken, the
regular holidays falling within the period shall be
compensated in accordance with this Rule.
(b) The regular holiday during the cessation of
operation of an enterprise due to business reverses as
authorized by the Secretary of Labor and Employment may
not be paid by the employer.
h. Private school teachers
SECTION 8. Holiday pay of certain employees. (a) Private
school teachers, including faculty members of colleges and
universities, may not be paid for the regular holidays during
semestral vacations. They shall, however, be paid for the
regular holidays during Christmas vacation;
i. Piece-rate workers
(b) Where a covered employee, is paid by results or output,
such as payment on piece work, his holiday pay shall not be
less than his average daily earnings for the last seven (7)
actual working days preceding the regular holiday; Provided,
However, that in no case shall the holiday pay be less than
the applicable statutory minimum wage rate.
j. Seasonal workers
(c) Seasonal workers may not be paid the required holiday pay
during off-season when they are not at work.
Service Incentive Leave
Article 95 as last updated by PD 850 (1975)
Right to service incentive leave.
a. Every employee who has rendered at least one year
of service shall be entitled to a yearly service
incentive leave of five days with pay.
b. This provision shall not apply to those who are
already enjoying the benefit herein provided, those
enjoying vacation leave with pay of at least five days
 and those employed in establishments regularly
employing less than ten employees or in
establishments exempted from granting his benefit
by the Secretary of Labor after considering the
viability or financial condition of such establishment.
c. The grant of benefit in excess of that provided herein
shall not be made a subject of arbitration or any
court or administrative action.
RULE V
Service Incentive Leave
SECTION 1. Coverage. This rule shall apply to all
employees except:
(a) Those of the government and any of its political
subdivisions, including government-owned and
controlled corporations;
(b) Domestic helpers and persons in the personal
service of another;
(c) Managerial employees as defined in Book Three
of this Code;
(d) Field personnel and other employees whose
performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are
paid a fixed amount for performing work irrespective
of the time consumed in the performance thereof;
(e) Those who are already enjoying the benefit herein
provided;
(f) Those enjoying vacation leave with pay of at least
five days; and
(g) Those employed in establishments regularly
employing less than ten employees.
SECTION 2. Right to service incentive leave. Every
employee who has rendered at least one year of service shall
be entitled to a yearly service incentive leave of five days with
pay.
SECTION 3. Definition of certain terms. The term "at least
one-year service" shall mean service for not less than 12
months, whether continuous or broken reckoned from the
date the employee started working, including authorized
absences and paid regular holidays unless the working days in
the establishment as a matter of practice or policy, or that
provided in the employment contract is less than 12 months,
in which case said period shall be considered as one year.
SECTION 4. Accrual of benefit. Entitlement to the benefit
provided in this Rule shall start December 16, 1975, the date
the amendatory provision of the Code took effect.
SECTION 5. Treatment of benefit. The service incentive
leave shall be commutable to its money equivalent if not used
or exhausted at the end of the year.
SECTION 6. Relation to agreements. Nothing in the Rule
shall justify an employer from withdrawing or reducing any
benefits, supplements or payments as provided in existing
individual or collective agreements or employer's practices or
policies.
RA 8187
Section 1 Short Title. - This Act shall be known as the
"Paternity Leave Act of 1996".
Section 2 Notwithstanding any law, rules and regulations to
the contrary, every married male employee in the private and
public sectors shall be entitled to a paternity leave of seven
(7) days with full pay for the first four (4) deliveries of the
legitimate spouse with whom he is cohabiting. The male
employee applying for paternity leave shall notify his
employer of the pregnancy of his legitimate spouse and the
expected date of such delivery.
For purposes, of this Act, delivery shall include childbirth or
any miscarriage.
Section 3 Definition of Term. - For purposes of this Act,
Paternity Leave refers to the benefits granted to a married
male employee allowing him not to report for work for seven
(7) days but continues to earn the compensation therefor, on
the condition that his spouse has delivered a child or suffered
a miscarriage for purposes of enabling him to effectively lend
support to his wife in her period of recovery and/or in the
nursing of the newly-born child.
Section 4 The Secretary of Labor and Employment, the
Chairman of the Civil Service Commission and the Secretary
of Health shall, within thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary for the
proper implementation of the provisions hereof.
Section 5 Any person, corporation, trust, firm, partnership,
association or entity found violating this Act or the rules and
regulations promulgated thereunder shall be punished by a
fine not exceeding Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more than
six (6) months.
If the violation is committed by a corporation, trust or firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed on the entity's responsible
officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager, managing
director or partner directly responsible therefor.
Section 6 Non-diminution Clause. - Nothing in this Act shall
be construed to reduce any existing benefits of any form
granted under existing laws, decrees, executive orders, or any
contract agreement or policy between employer and
employee.
IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC
ACT NO. 8187 FOR THE PRIVATE SECTOR
SECTION 1. Definition of Terms. As used in this Rules, the
following terms shall have the meaning as indicated
hereunder:
a Paternity Leave refers to the leave credits granted
to a married male employee to allow him to earn
compensation for seven (7) working days without
reporting for work, provided that his spouse has
delivered a child or had a miscarriage or an abortion
for the purpose of lending support to his wife during
her period of recovery and/or the nursing of the
newly born child.
b Employee refers to any person who performs
services for an employer and receives compensation
therefor, provided an employeremployee relationship
exists between them.
c Delivery refers to childbirth, miscarriage or
abortion.
 d Spouse refers to the lawful wife. For this purpose,
lawful wife refers to a woman who is legally married
to the male employee concerned.
e Cohabiting refers to the obligation of the husband
and wife to live together.
SECTION 2. Coverage. Every married male employee in
the private sector shall be entitled to paternity leave benefits
of seven (7) working days with full pay for the first four (4)
deliveries by his lawful spouse under such terms and
conditions as hereinafter provided.
The rules on paternity leave of employees in the public sector
shall be promulgated by the Civil Service Commission.
SECTION 3. Conditions for entitlement of paternity leave
benefits. A married male employee shall be entitled to
paternity benefits provided that:
a he is employed at the time of delivery of his child;
b he has notified his employer of the pregnancy of his
wife and her expected date of delivery subject to the
provisions of Section 4 hereof; and
c his wife has given birth, suffers a miscarriage or an
abortion.
SECTION 4. Notification. As soon as the married male
employee learns that his spouse is pregnant, he shall inform
his employer of such pregnancy and the expected date of
delivery within a reasonable period of time. The employee
shall accomplish a Paternity Notification Form to be provided
for by the employer and submit the same to the latter,
together with a copy of his marriage contract, or where not
applicable, any proof of marriage. Provided, That this
notification requirement shall not apply in cases of
miscarriage or abortion.
Any employee who has availed of the paternity benefits shall,
within a reasonable period of time, submit a copy of the birth
certificate of the newly born child, death or medical
certificate in case of miscarriage or abortion, duly signed by
the attending physician or midwife showing actual date of
childbirth, miscarriage or abortion, as the case may be.
SECTION 5. Availment. The paternity benefits set forth
herein may be enjoyed by the qualified employee before,
during or after the delivery by his wife; provided, that the
total number of days shall not exceed seven (7) working days
for each delivery. Provided, further, that this benefit shall be
availed of not later than sixty (60) days after the date of said
delivery.
SECTION 6. Benefits. The employee is entitled to seven
(7) working days paternity leave with pay, consisting of basic
salary, all allowances and other monetary benefits.
SECTION 7. Non-Conversion of benefits. In the event that
the paternity leave benefit is not availed of, said leave shall
not be convertible to cash.
SECTION 8. Penalty. Any person, corporation, trust, firm,
partnership, association or entity found violating any
provision of these Rules shall be penalized by a fine not
exceeding twenty five thousand pesos (P25,000) or
imprisonment of not less than thirty (30) days nor more than
six (6) months.
If the violation is committed by a corporation, trust firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed on the entitys responsible
officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager,
managing director or partner directly responsible therefor.
Solo Parents' Welfare Act of 2000
Section 1 This Act shall be known as the "Solo Parents'
Welfare Act of 2000."
Section 2 Declaration of Policy. - It is the policy of the State
to promote the family as the foundation of the nation,
strengthen its solidarity and ensure its total development.
Towards this end, it shall develop a comprehensive program of
services for solo parents and their children to be carried out
by the Department of Social Welfare and Development
(DSWD), the Department of Health (DOH), the Department of
Education, Culture and Sports (DECS), the Department of the
Interior and Local Government (DILG), the Commission on
Higher Education (CHED), the Technical Education and Skills
Development Authority (TESDA), the National Housing
Authority (NHA), the Department of Labor and Employment
(DOLE) and other related government and nongovernment
agencies.
Section 3 Definition of Terms. - Whenever used in this Act,
the following terms shall mean as follows:
a. "Solo parent" - any individual who falls under any of
the following categories:
1. chastity even without a final conviction of
the offender: Provided, That the mother
keeps and raises the child;
2. Parent left solo or alone with the
responsibility of parenthood due to death of
spouse;
3. Parent left solo or alone with the
responsibility of parenthood while the
spouse is detained or is serving sentence for
a criminal conviction for at least one (1)
year;
4. Parent left solo or alone with the
responsibility of parenthood due to physical
and/or mental incapacity of spouse as
certified by a public medical practitioner;
5. Parent left solo or alone with the
responsibility of parenthood due to legal
separation or de facto separation from
spouse for at least one (1) year, as long as
he/she is entrusted with the custody of the
children;
6. Parent left solo or alone with the
responsibility of parenthood due to
declaration of nullity or annulment of
marriage as decreed by a court or by a
church as long as he/she is entrusted with
the custody of the children;
7. Parent left solo or alone with the
responsibility of parenthood due to
abandonment of spouse for at least one (1)
year;
8. Unmarried mother/father who has preferred
to keep and rear her/his child/children
instead of having others care for them or
give them up to a welfare institution;
9. Any other person who solely provides
parental care and support to a child or
children;
10. Any family member who assumes the
responsibility of head of family as a result of
the death, abandonment, disappearance or
prolonged absence of the parents or solo
parent.
A change in the status or circumstance of the parent
claiming benefits under this Act, such that he/she is
no longer left alone with the responsibility of
 parenthood, shall terminate his/her eligibility for
these benefits.
b. "Children" - refer to those living with and dependent
upon the solo parent for support who are unmarried,
unemployed and not more than eighteen (18) years
of age, or even over eighteen (18) years but are
incapable of self-support because of mental and/or
physical defect/disability.
c. "Parental responsibility" - with respect to their minor
children shall refer to the rights and duties of the
parents as defined in Article 220 of Executive Order
No. 209, as amended, otherwise known as the
"Family Code of the Philippines."
d. "Parental leave" - shall mean leave benefits granted
to a solo parent to enable him/her to perform
parental duties and responsibilities where physical
presence is required.
e. "Flexible work schedule" - is the right granted to a
solo parent employee to vary his/her arrival and
departure time without affecting the core work hours
as defined by the employer.
Section 4 Criteria for Support. - Any solo parent whose
income in the place of domicile falls below the poverty
threshold as set by the National Economic and Development
Authority (NEDA) and subject to the assessment of the DSWD
worker in the area shall be eligible for assistance: Provided,
however, That any solo parent whose income is above the
poverty threshold shall enjoy the benefits mentioned in
Sections 6, 7 and 8 of this Act.
Section 5 Comprehensive Package of Social Development
and Welfare Services. - A comprehensive package of social
development and welfare services for solo parents and their
families will be developed by the DSWD, DOH, DECS, CHED,
TESDA, DOLE, NHA and DILG, in coordination with local
government units and a nongovernmental organization with
proven track record in providing services for solo parents.
The DSWD shall coordinate with concerned agencies the
implementation of the comprehensive package of social
development and welfare services for solo parents and their
families. The package will initially include:
a. Livelihood development services which include
trainings on livelihood skills, basic business
management, value orientation and the provision of
seed capital or job placement.
b. Counseling services which include individual, peer
group or family counseling. This will focus on the
resolution of personal relationship and role conflicts.
c. Parent effectiveness services which include the
provision and expansion of knowledge and skills of
the solo parent on early childhood development,
behavior management, health care, rights and duties
of parents and children.
d. Critical incidence stress debriefing which includes
preventive stress management strategy designed to
assist solo parents in coping with crisis situations and
cases of abuse.
e. Special projects for individuals in need of protection
which include temporary shelter, counseling, legal
assistance, medical care, self-concept or ego-
building, crisis management and spiritual
enrichment.
Section 6 Flexible Work Schedule. - The employer shall
provide for a flexible working schedule for solo parents:
Provided, That the same shall not affect individual and
company productivity: Provided, further, That any employer
may request exemption from the above requirements from
the DOLE on certain meritorious grounds.
Section 7 Work Discrimination. - No employer shall
discriminate against any solo parent employee with respect to
terms and conditions of employment on account of his/her
status.
Section 8 Parental Leave. - In addition to leave privileges
under existing laws, parental leave of not more than seven (7)
working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year.
Section 9 Educational Benefits. - The DECS, CHED and TESDA
shall provide the following benefits and privileges:
1. Scholarship programs for qualified solo parents and
their children in institutions of basic, tertiary and
technical/skills education; and
2. Nonformal education programs appropriate for solo
parents and their children.
The DECS, CHED and TESDA shall promulgate rules and
regulations for the proper implementation of this program.
Section 10 Housing Benefits. - Solo parents shall be given
allocation in housing projects and shall be provided with
liberal terms of payment on said government low-cost housing
projects in accordance with housing law provisions prioritizing
applicants below the poverty line as declared by the NEDA.
Section 11 Medical Assistance. - The DOH shall develop a
comprehensive health care program for solo parents and their
children. The program shall be implemented by the DOH
through their retained hospitals and medical centers and the
local government units (LGUs) through their
provincial/district/city/municipal hospitals and rural health
units (RHUs).
Section 12 Additional Powers and Functions of the DSWD.
The DSWD shall perform the following additional powers and
functions relative to the welfare of solo parents and their
families:
a. Conduct research necessary to:
1. develop a new body of knowledge on solo
parents;
2. define executive and legislative measures
needed to promote and protect the interest
of solo parents and their children; and
3. assess the effectiveness of programs
designed for disadvantaged solo parents
and their children;
b. Coordinate the activities of various governmental
and nongovernmental organizations engaged in
promoting and protecting the interests of solo
parents and their children; and
c. Monitor the implementation of the provisions of this
Act and suggest mechanisms by which such
provisions are effectively implemented.
Section 13 Implementing Rules and Regulations. - An
interagency committee headed by the DSWD, in coordination
with the DOH, DECS, CHED, TESDA, DOLE, NHA, and DILG is
hereby established which shall formulate, within ninety (90)
days upon the effectivity of this Act, the implementing rules
and regulations in consultation with the local government
units, nongovernment organizations and people's
organizations.
RA 9262 VAWC Law
SECTION 43. Entitled to Leave. Victims under this Act shall
be entitled to take a paid leave of absence up to ten (10) days
in addition to other paid leaves under the Labor Code and Civil
Service Rules and Regulations, extendible when the necessity
arises as specified in the protection order.
Any employer who shall prejudice the right of the person
under this section shall be penalized in accordance with the
provisions of the Labor Code and Civil Service Rules and
Regulations. Likewise, an employer who shall prejudice any
person for assisting a co-employee who is a victim under this
Act shall likewise be liable for discrimination.
Magna Carta for Women RA 9710
Section 15. Women in the Military. - The State shall
pursue appropriate measures to eliminate discrimination of
women in the military, police, and other similar services,
including revising or abolishing policies and practices that
restrict women from availing of both combat and noncombat
training that are open to men, or from taking on functions
other than administrative tasks, such as engaging in combat,
security-related, or field operations. Women in the military
shall be accorded the same promotional privileges and
opportunities as men, including pay increases, additional
remunerations and benefits, and awards based on their
competency and quality of performance. Towards this end, the
State shall ensure that the personal dignity of women shall
always be respected.
Women in the military, police, and other similar services shall
be provided with the same right to employment as men on
equal conditions. Equally, they shall be accorded the same
capacity as men to act in and enter into contracts, including
marriage.
Further, women in the military, police; and other similar
services shall be entitled to leave benefits such as maternity
leave, as provided for by existing laws.
Section 18. Special Leave Benefits for Women. - A
woman employee having rendered continuous aggregate
employment service of at least six (6) months for the last
twelve (12) months shall be entitled to a special leave benefit
of two (2) months with full pay based on her gross monthly
compensation following surgery caused by gynecological
disorders.
Section 22. Right to Decent Work. - The State shall
progressively realize and ensure decent work standards for
women that involve the creation of jobs of acceptable quality
in conditions of freedom, equity, security, and human dignity.
(a) Decent work involves opportunities for work that are
productive and fairly remunerative as family living wage,
security in the workplace, and social protection for families,
better prospects for personal development and social
integration, freedom for people to express their concerns
organize, participate in the decisions that affect their lives,
and equality of opportunity and treatment for all women and
men.
(b) The State shall further ensure:
(1) Support services and gears to protect them from
occupational and health hazards taking into account
women's maternal functions;
(2) Support services that will enable women to
balance their family obligations and work
responsibilities including, but not limited to, the
establishment of day care centers and breast-feeding
stations at the workplace, and providing maternity
leave pursuant to the Labor Code and other pertinent
laws;
(3) Membership in unions regardless of status of
employment and place of employment; and
(4) Respect for the observance of indigenous
peoples' cultural practices even in the workplace.
Magna Carta for Women IRR
Rule II
Definition of Terms
T. Special leave benefits for women refers to a female
employees leave entitlement of two (2) months with full pay
from her employer based on her gross monthly compensation
following surgery caused by gynecological disorders, provided
that she has rendered continuous aggregate employment
service of at least six (6) months for the last 12 months;
The DepEd, CHED and TESDA shall monitor and ensure
compliance of educational institutions to the following:
1 Women faculty who become pregnant
outside of marriage shall not be discriminated
by reason thereof. They shall not be dismissed,
separated from work, forced to go on leave, re-
assigned or transferred. They shall have access
to work already held with no diminution in rank,
pay or status and shall be entitled to all
benefits accorded by law and by the concerned
learning institutions;
2 No female student shall be expelled,
dismissed, suspended, refused or denied of
admission, or forced to take a leave of absence
in any educational institution solely on grounds
of pregnancy outside marriage during her
school term. When needed, students who are
pregnant shall be accorded with a special leave
of absence from school upon advice of the
attending physician, and be given an
opportunity to make up for missed classes and
examinations. The same leave benefits shall
likewise be accorded to pregnant faculty
members, and school personnel and staff;
SECTION 18. Women in the Military, Police and Other
Similar Services The State shall pursue appropriate
measures to eliminate discrimination of women in the
military, police, and other similar services, including
revising or abolishing policies and practices that restrict
women from availing of both combat and non-combat
training that are open to men, or from taking on functions
other than administrative tasks, such as engaging in
combat, security-related, or field operations. Women in
the military shall be accorded the same promotional
privileges and opportunities as men, including pay
increases, additional remunerations and benefits, and
awards based on their competency and quality of
performance. They shall not be subjected to harassment
and violence, including verbal and sexual abuses in all
stages of their recruitment, training and service. Towards
this end, the State shall ensure that the personal dignity
of women shall always be respected.
Women in the military, police, and other similar services
shall be provided with the same right to employment as
men on equal conditions. Equally, they shall be accorded
the same capacity as men to act in and enter into
contracts, including marriage.
Further, women in the military, police, and other similar
services shall be entitled to leave benefits such as
maternity leave, as provided for by existing laws. For this
purpose:
A. The DND, DILG, DOJ and LGUs shall:
 1 Grant the same privileges and opportunities
to men and women, including pay
increases, additional remunerations and
benefits and awards;
2 Give equal consideration to men and women
in the area or field of assignment such as,
but not limited to, operational functions,
administrative functions and international
peacekeeping duties where women can
exercise and develop their full potentials;
3 Pursue appropriate measures to eliminate
discrimination of women, including revision
or abolition of policies and practices that
restrict women from availing both combat
and non-combatant trainings that are open
to men, or from taking on functions other
than administrative tasks;
4 Assure non-discrimination in appointments
to any key position as well as designations
to boards, tribunals, committees, or any
decision-making body. Women shall be
represented in every committee or board
where gender issues and concerns are
articulated;
5 Ensure that the physical fitness tests
administered on women uniformed
personnel in the military, police and similar
services, as requirements for entry,
promotion or schooling shall be based on
standards, set by the respective agencies
taking into consideration womens physical
and biological built. These shall be different
from those required of their male
counterparts. Moreover, physical fitness
tests for women uniformed personnel in the
military, police and similar services shall be
conducted by female doctors, practitioners
or tactical officers;
6 Accord women and men the same capacity
to act in and
enter into contracts, including marriage:
a Allow women to contract marriage upon
entry inmilitary service or similar services,
except for such positions where a marriage
ban for a specific period of time is required
for both men and women; and
b Provide the benefits under existing laws
such as, butnot limited, to maternity
leaves, solo parent privileges and leaves
due to gynecological disorders;
SECTION 21. Special Leave Benefits for Women
A. Any female employee in the public and
private sector regardless of age and civil status shall be
entitled to a special leave of two (2) months with full pay
based on her gross monthly compensation subject to
existing laws, rules and regulations due to surgery caused
by gynecological disorders under such terms and
conditions:
1 She has rendered at least six (6) months continuous
aggregate employment service for the last twelve (12)
months prior to surgery;
2 In the event that an extended leave is necessary, the
female employee may use her earned leave credits; and
3 This special leave shall be non-cumulative and
nonconvertible to cash.
Service Charges
Article 96. Service charges. All service charges collected
by hotels, restaurants and similar establishments shall be
distributed at the rate of eighty five percent for all covered
employees and fifteen percent for management. The share of
the employees shall be equally distributed among them. In
case the service charge is abolished, the share of the covered
employees shall be integrated into their wages.
RULE VI
Service Charges
Section 1. Coverage. This rule shall apply only to
establishments collecting service charges such as hotels,
restaurants, lodging houses, night clubs, cocktail lounge,
massage clinics, bars, casinos and gambling houses, and
similar enterprises, including those entities operating
primarily as private subsidiaries of the Government.
Section 2. Employees covered. This rule shall apply to all
employees of covered employers, regardless of their
positions, designations or employment status, and
irrespective of the method by which their wages are paid
except to managerial employees.
As used herein, a "managerial employee" shall mean one who
is vested with powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off,
recall, discharge, assign, or discipline employees or to
effectively recommend such managerial actions. All
employees not falling within this definition shall be considered
rank-and-file employees.
Section 3. Distribution of service charges. All service
charges collected by covered employers shall be distributed
at the rate of 85% for the employees and 15% for the
management. The 85% shall be distributed equally among the
covered employees. The 15% shall be for the disposition by
management to answer for losses and breakages and
distribution to managerial employees at the discretion of the
management in the latter case.
Section 4. Frequency of distribution. The shares referred
to herein shall be distributed and paid to the employees not
less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days.
Section 5. Integration of service charges. In case the
service charges is abolished the share of covered employees
shall be considered integrated in their wages. The basis of the
amount to be integrated shall be the average monthly share
of each employee for the past twelve (12) months
immediately preceding the abolition of withdrawal of such
charges.
Section 6. Relation to agreements. Nothing in this Rule
shall prevent the employer and his employees from entering
into any agreement with terms more favorable to the
employees than those provided herein, or be used to diminish
any benefit granted to the employees under existing laws,
agreement and voluntary employer practice.
Wages
Chapter I
Preliminary Matters
1. Definition
Article 97 as last updated by EO 111 (1986)
Definitions. As used in this Title:
f. "Wage" paid to any employee shall mean the remuneration
or earnings, however designated, capable of being expressed
in terms of money, whether fixed or ascertained on a time,
task, piece, or commission basis, or other method of
calculating the same, which is payable by an employer to an
employee under a written or unwritten contract of
employment for work done or to be done, or for services
rendered or to be rendered, and includes the fair and
reasonable value, as determined by the Secretary of Labor, of
board, lodging, or other facilities customarily furnished by the
employer to the employee. "Fair and reasonable value" shall
not include any profit to the employer or to any person
affiliated with the employer.
2. Coverage
b. "Employer" includes any person acting directly or indirectly
in the interest of an employer in relation to an employee and
shall include the Government and all its branches,
subdivisions and instrumentalities, all government-owned or
controlled corporations and institutions, as well as non-profit
private institutions or organizations.
3. Prohibition against
diminution/elimination
Article 100 as last updated by EO 111 (1986)
Prohibition against elimination or diminution of benefits.
Nothing in this Book shall be construed to eliminate or in any
way diminish supplements or other employee benefits being
enjoyed at the time of the promulgation of this Code.
Article 127 as last updated by RA 6727 (1989)
Non-diminution of Benefits. No Wage Order issued by any
Regional Board shall provide for wage rates lower than the
statutory minimum wage rates prescribed by Congress.
5. Payment by result
Article 101 as last updated by EO 111 (1986)
Payments by results. The Secretary of Labor shall regulate
the payment of wages by results, including pakyao, placework
and other non-time work, in order to ensure the payment of
fair and reasonable wage rates, preferably through time and
motion studies or in consultation with representatives of
workers' and employers' organization.
RULE VII Wages
SECTION 8. Payment by Result (a) On petition of any
interested part, or upon its initiative, the Department of Labor
shall use all available devices, including the use of time and
motion studies and consultation with representatives of
employers and workers organizations, to determine whether
the employees in any industry or enterprise are being
compensated in accordance with the minimum wage
requirements of this Rule.
(b) The basis for the establishment of rates for piece, output,
or contract work shall be the performance of an ordinary
worker of minimum skill or ability.
(c) An ordinary worker of minimum skill or ability is the
average worker of the lowest producing group representing
50% of the total number of employees engaged in similar
employment in a particular establishment, excluding learners,
apprentices and handicapped workers employed therein.
(d) Where the output rates established by the employer do
not conform with the standards prescribed herein, or with the
rates prescribed by the Department of Labor in any
appropriate order, the employees shall be entitled to the
difference between the amount to which they are entitled to
receive under such prescribed standards or rates and that
actually paid them by the employer.
6. Forms of payment
Article 102 as last updated by EO 111 (1986)
Forms of payment. No employer shall pay the wages of an
employee by means of promissory notes, vouchers, coupons,
tokens, tickets, chits or any object other than legal tender,
even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed
when such manner of payment is customary on the date of
effectivity of this Code, or is necessary because of special
circumstances as specified in appropriate regulations to be
issued by the Secretary of Labor or is stipulated in a collective
bargaining agreement.
RULE VIII
Payment of Wages
Section 1. Manner of wage payment. - As a general rule,
wages shall be paid in legal tender and the use of tokens,
promissory notes, vouchers, coupons, or any other form
alleged to represent legal tender is absolutely prohibited even
when expressly requested by the employee.
Section 2. Payment by check. - Payment of wages by bank
checks, postal checks or money orders is allowed where such
manner of wage payment is customary on the date of the
effectivity of the Code, where it is so stipulated in a collective
agreement, or where all of the following conditions are met:
(a) There is a bank or other facility for encashment
within a radius of one (1) kilometer from the
workplace;
(b) The employer or any of his agents or
representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement;
(c) The employees are given reasonable time during
banking hours to withdraw their wages from the bank
which time shall be considered as compensable
hours worked if done during working hours; and
(d) The payment by check is with the written consent
of the employees concerned if there is no collective
agreement authorizing the payment of wages by
bank checks.
7. Time of payment
Article 103 as last updated by EO 111 (1986)
Time of payment. Wages shall be paid at least once every
two weeks or twice a month at intervals not exceeding sixteen
days. If on account of force majeure or circumstances beyond
the employer's control, payment of wages on or within the
time herein provided cannot be made, the employer shall pay
the wages immediately after such force majeure or
circumstances have ceased.
The payment of wages of employees engaged to perform a
task which cannot be completed in two weeks shall be subject
to the following conditions in the absence of a collective
bargaining agreement or arbitration award:
That payments are made at intervals not exceeding sixteen
days, in proportion to the amount of work completed; and
That final settlement is made upon completion of the work.
No employer shall make payment with less frequency than
once a month.
Section 3. Time of payment. (a) Wages shall be paid not
less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days, unless payment
cannot be made with such regularity due to force majeure or
circumstances beyond the employer's control in which case
the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
(b) In case of payment of wages by results involving work
which cannot be finished in two (2) weeks, payment shall be
made at intervals not exceeding sixteen days in proportion to
the amount of work completed. Final settlement shall be
made immediately upon completion of the work.
8. Place of Payment
Article 104. Place of payment. Payment of wages shall be
made at or near the place of undertaking, except as otherwise
provided by such regulations as the Secretary of Labor may
prescribe under conditions to ensure greater protection of
wages.

Rule VIII
Section 4. Place of payment. (a) As a general rule, the
place of payment shall be at or near the place of undertaking.
Payment in a place other than the work place shall be
permissible only under the following circumstances:

(1) When payment cannot be effected at or near the

place of work by reason of the deterioration of peace
and order conditions, or by reason of actual or
impending emergencies caused by fire, flood,
epidemic or other calamity rendering payment
thereat impossible;

(2) When the employer provides free transportation to

the employees back and forth; and

(3) Under any other analogous circumstances; Provided,

That the time spent by the employees in collecting
their wages shall be considered as compensable
hours worked;

(b) No employer shall pay his employees in any bar, night or

day club, drinking establishment, massage clinic, dance hall,
or other similar places or in places where games are played
with stakes of money or things representing money except in
the case of persons employed in said places.

RA 6727 Wage Rationalization Act

Section 7. Upon written petition of the majority of the
employees or workers concerned, all private establishments,
companies, businesses, and other entities with twenty-five
(25) or more employees and located within one (1) kilometer
radius to a commercial, savings or rural bank shall pay the
wages and other benefits of their employees through any of
said banks and within the period for payment of wages fixed
by Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines.

9. Exceptions to direct payment

Article 105. Direct payment of wages. Wages shall be paid
directly to the workers to whom they are due, except:

In cases of force majeure rendering such payments impossible

or under other special circumstances to be determined by the
Secretary of Labor in appropriate regulations, in which cases
the worker may be paid through another person under written
authority given by the worker for the purpose.

Where the workers has died, in which case the employer may
pay the wages of the deceased worker to the heirs of the
latter without the necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and the fact
that they are his heirs, to the exclusion of all other persons. If
any of the heirs is a minor, the affidavit shall be executed on
his behalf by his natural guardian or next of kin. The affidavit
shall be presented to the employer who shall make payment
through the Secretary of Labor or his representative. The
representative of the Secretary of Labor shall act as referee in
dividing the amount paid among the heirs. The payment of
wages under this Article shall absolve the employer of any
further liability with respect to the amount paid.
 SKIM
DEPARTMENT ORDER NO. 18-02 February 21, 2002
Series of 2002
RULES IMPLEMENTING ARTICLES 106 TO 109 OF THE
LABOR CODE, AS AMENDED
Section 4. Definition of Basic Terms. The following terms
as used in these Rules, shall mean:
(a) "Contracting" or "subcontracting" refers to an
arrangement whereby a principal agrees to put out or
farm out with a contractor or subcontractor the
performance or completion of a specific job, work or
service within a definite or predetermined period,
regardless of whether such job, work or service is to be
performed or completed within or outside the premises of
the principal.
(b) "Contractor" or "Subcontractor" refers to any person
engaged in a legitimate contracting or subcontracting
arrangement.
(c) "Contractual employee" includes one employed by a
contractor or subcontractor to perform or complete a job,
work or service pursuant to an arrangement between the
latter and a principal.
(d) "Principal" refers to any employer who puts out or farms
out a job, service or work to a contractor or
subcontractor.
Section 5. Prohibition Against Labor-Only
Contracting. Labor-only contracting is hereby declared
prohibited. For this purpose, labor-only contracting shall refer
to an arrangement where the contractor or subcontractor
merely recruits, supplies or places workers to perform a job,
work or service for a principal, and any of the following
elements are present:
(i) The contractor or subcontractor does not have substantial
capital or investment which relates to the job, work or
service to be performed; and the employees recruited,
supplied or placed by such contractor or subcontractor
are performing activities which are directly related to the
main business of the principal; or
(ii) the contractor does not exercise the right to control over the
performance of the work of the contractual employee.
The foregoing provisions shall be without prejudice to the
application of Article 248 (c) of the Labor Code, as amended.
"Substantial capital or investment" refers to capital stocks and
subscribed capitalization in the case of corporation, tools,
equipment, implements, machineries and work premises,
actually and directly used by the contractor or subcontractor
in the performance or completion of the job, work or service
contracted out.
"The "right to control" shall refer to the right reserved to the
person for whom the services of the contractual workers are
performed, to determine not only the end to be achieved, but
also the manner and means to be used in reaching that end.
Section 6. Prohibitions. Notwithstanding Section 5 of
these Rules, the following are hereby declared prohibited for
being contrary to law or public policy:
(a) Contracting out of a job, work or service when not done in
good faith and not justified by the exigencies of the
business and the same results in the termination of
regular employees and reduction of work hours or
reduction or splitting of the bargaining unit;
(b) Contracting out of work with a "cabo" as defined in
Section 1 (ii), Rule I, Book V of these Rules. "Cabo" refers
to a person or group of persons or to a labor group which,
in the guise of labor organization, supplies workers to an
employer, with or without any monetary or other
consideration which in the capacity of an agent of the
employer or as an ostensible independent contractor.
(c) Taking undue advantage of the economic situation or lack
of bargaining strength of the contractual employee, or
undermining his security of tenure or basic rights, or
circumventing the provisions of regular employment, in
any of the following instances:
i) In addition to his assigned function, requiring the
contractual employee to perform functions which
are currently being performed by the regular
employees of the principal or of the contractor or
subcontractor;
ii) Requiring him to sign, as a precondition to
employment or continued employment, an
antedated resignation letter; a blank payroll; a
waiver of labor standards including minimum wages
and social or welfare benefits; or a quitclaim
releasing the principal, contractor or subcontractor
from any liability as to payment of future claims;
and
iii) Requiring him to sign a contract fixing the period of
employment to a term shorter than the term of the
contract between the principal and the contractor or
subcontractor, unless the latter contract is divisible
into phases for which substantially different skills
are required and this is made known to the
employee at the time of engagement;
(d) Contracting out of a job, work or service through an in-
house agency which refers to a contractor or
subcontractor engaged in the supply of labor which is
owned, managed or controlled by the principal and which
operates solely for the principal;
(e) Contracting out of a job, work or service directly related
to the business or operation of the principal by reason of
a strike or lockout whether actual or imminent;
(f) Contracting out of a job, work or service being performed
by union members when such will interfere with, restrain
or coerce employees in the exercise of their rights to self-
organization as provided in Art. 248 (c) of the Labor Code,
as amended.
Section 7. Existence of an Employer-Employee
Relationship. The contractor or subcontractor shall be
considered the employer of the contractual employee for
purposes of enforcing the provisions of the Labor Code and
other social legislation. The principal, however, shall be
solidarily liable with the contractor in the event of any
violation of any provision of the Labor Code, including the
failure to pay wages.
The principal shall be deemed the employer of the contractual
employee in any of the following cases, as declared by a
competent authority:
(a) where there is labor-only contracting; or
(b) where the contracting arrangement falls within the
prohibitions provided in Section 6 (Prohibitions) hereof.
Section 8. Rights of Contractual Employees. The
contractual employee shall be entitled to all the rights and
privileges due a regular employee as provided for in the Labor
Code, as amended, to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive leaves, rest
days, overtime pay, holiday pay, 13th month pay, and
separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful
concerted action; and,
(e) Security of tenure.
Section 9. Contract between Contractor or
Subcontractor and Contractual Employees.
Notwithstanding oral or written stipulations to the contrary,
the contract between the contractor or subcontractor and the
contractual employee, which shall be in writing, shall include
the following terms and conditions:
(a) The specific description of the job, work or service to be
performed by the contractual employee;
(b) The place of work and terms and conditions of
employment, including a statement of the wage rate
applicable to the individual contractual employee; and
(c) The term or duration of employment, which shall be co-
extensive with the contract of the principal and
subcontractor, or with the specific phase for which the
contractual employee is engaged, as the case may be.
The contractor or subcontractor shall inform the contractual
employee of the foregoing terms and conditions on or before
the first day of his employment.
Section 10. Effect of Termination of Contractual
Employment. In cases of termination of employment prior
to the expiration of the contract between the principal and the
contractor or subcontractor, the right of the contractual
employee to separation pay or other related benefits shall be
governed by the applicable laws and jurisprudence on
termination of employment.
Where the termination results from the expiration of the
contract between the principal and the contractor or
subcontractor, or from the completion of the phase of the job,
work or service for which the contractual employee is
engaged, the latter shall not be entitled to separation pay.
However, this shall be without prejudice to completion
bonuses or other emoluments, including retirement pay as
may be provided by law or in the contract between the
principal and the contractor or subcontractor.
Section 11. Registration of Contractors or
Subcontractors. Consistent with the authority of the
Secretary of Labor and Employment to restrict or prohibit the
contracting out of labor through appropriate regulations, a
registration system to govern contracting arrangements and
to be implemented by the Regional Offices is hereby
established.
The registration of contractors and subcontractors shall be
necessary for purposes of establishing an effective labor
market information and monitoring.
Failure to register shall give rise to the presumption that the
contractor is engaged in labor-only contracting.
Section 12. Requirements for Registration. A
contractor or subcontractor shall be listed in the registry of
contractors or subcontractors upon completion of an
application form to be provided by DOLE. The applicant
contractor or subcontractor shall provide in the application
form the following information:
(a) The name and business address of the applicant and area
or areas where it seeks to operate;
(b) The names and addresses of officers, if the applicant is a
corporation, partnership, cooperative or union;
(c) The nature of the applicants business and the industry or
industries where the applicant seeks to operate;
(d) The number of regular workers; the list of clients, if any;
the number of personnel assigned to each client, if any,
and the services provided to the client;
(e) The description of the phases of the contract and the
number of employees covered in each phase, where
appropriate; and,
(f) A copy of the audited financial statements if the applicant
is a corporation, partnership, cooperative or union, or
copy of the latest ITR if the applicant is a sole
proprietorship.
The application shall be supported by:
(a) A certified copy of certificate of registration of firm or
business name from the Securities and Exchange
Commission (SEC), Department of Trade and Industry
(DTI), Cooperative Development Authority (CDA), or from
the DOLE if the applicant is a union; and,
(b) A certified copy of the license or business permit issued
by the local government unit or units where the
contractor or subcontractor operates.
Section 13. Filing and Processing of Applications. The
application and its supporting documents shall be filed in
triplicate in the Regional Offices where the applicant
principally operates. No application for registration shall be
accepted unless all foregoing requirements are complied with.
The contractor or subcontractor shall be deemed registered
upon payment of a registration fee of P100.00 to the Regional
Office.
Where all the supporting documents have been submitted,
the Regional Office shall deny or approve the application
within seven (7) working days after its filing.
Upon registration, the Regional Office shall return one set of
the duly stamped application documents to the applicant,
retain one set for its file, and transmit the remaining set to the
Bureau of Local Employment. The bureau shall devise the
necessary forms for the expeditious processing of all
applications for registration.
Section 14. Duty to Produce Copy of Contract between
the Principal and the Contractor or Subcontractor. The
principal or the contractor or subcontractor shall be under an
obligation to produce a copy of the contract between the
principal and the contractor or subcontractor in the ordinary
course of inspection. The contractor or subcontractor shall
likewise be under an obligation to produce a copy of the
contract of employment of the contractual worker when
directed to do so by the Regional Director or his authorized
representative.
A copy of the contract between the contractual employee and
the contractor or subcontractor shall be furnished the certified
bargaining agent, if there is any.
Section 15. Annual Reporting of Registered
Contractors. The contractor or subcontractor shall
submit in triplicate its annual report using a prescribed
form to the appropriate Regional Office not later than the
15th of January of the following year. The report shall include:
(a) A list of contracts entered with the principal during the
subject reporting period;
(b) The number of workers covered by each contract with the
principal;
(c) A sworn undertaking that the benefits from the Social
Security System (SSS), the Home Development Mutual
Fund (HDMF), PhilHealth, Employees Compensation
Commission (ECC), and remittances to the Bureau of
Internal Revenue (BIR) due its contractual employees
have been made during the subject reporting period.
Section 16. De-listing of Contractors or
Subcontractors. Subject to due process, the Regional
Director shall cancel the registration of contractors or
subcontractors based on any of the following grounds:
(a) Non-submission of contracts between the principal and
the contractor or subcontractor when required to do so;
(b) Non-submission of annual report;
(c) Findings through arbitration that the contractor or
subcontractor has engaged in labor- only contracting and
the prohibited activities as provided in Section 6
(Prohibitions) hereof; and,
(d) Non-compliance with labor standards and working
conditions.
Section 17. Renewal of Registration of Contractors or
Subcontractors. All registered contractors or
subcontractors may apply for renewal of registration every
three (3) years. For this purpose, the Tripartite Industrial
Peace Council (TIPC) as created under Executive Order No. 49,
shall serve as the oversight committee to verify and monitor
the following:
(a) Engaging in allowable contracting arrangements; and
(b) Compliance with administrative reporting requirements.
Section 18. Enforcement of Labor Standards and
Working Conditions. Consistent with Article 128 (Visitorial
and Enforcement Power) of the Labor Code, as amended, the
Regional Director through his duly authorized representatives,
including labor regulation officers, shall have the authority ton
conduct routine inspection of establishments engaged in
contracting or subcontracting and shall have access to
employers records and premises at any time of the day or
night whenever work is undertaken therein, and the right to
copy therefrom, to question any employee and investigate
any fact, condition or matter which may be necessary to
determine violations or which may aid in the enforcement of
the Labor Code and of any labor law, wage order or rules and
regulations issued pursuant thereto.
The findings of the duly authorized representative shall be
referred to the Regional Director for appropriate action as
provided for in Article 128, and shall be furnished the
collective bargaining agent, if any.
Based on the visitorial and enforcement power of the
Secretary of Labor and Employment in Article 128 (a), (b), (c)
and 9d), the Regional Director shall issue compliance orders
to give effect to the labor standard provisions of the Labor
Code, other labor legislation and these guidelines.
Section 19. Solidary Liability. The principal shall be
deemed as the direct employer of the contractual employees
and therefore, solidarily liable with the contractor or
subcontractor for whatever monetary claims the contractual
employees may have against the former in the case of
violations as provided for in Sections 5 (Labor-only
Contracting), 6 (Prohibitions), 8 (Rights of Contractual
Employees) and (16 (De-listing) of these Rules. In addition,
the principal shall also be solidarily liable in case the contract
between the principal and contractor or subcontractor is pre-
terminated for reasons not attributable to the fault of the
contractor or subcontractor.
DEPARTMENT ORDER NO. 18-A Series of 2011
RULES IMPLEMENTING ARTICLES 106 TO 109 OF THE
LABOR CODE, AS AMENDED
Section 1. Guiding principles. Contracting and
subcontracting arrangements are expressly allowed by law
and are subject to regulations for the promotion of
employment and the observance of the rights of workers to
just and humane conditions of work, security of tenure, self-
organization and collective bargaining. Labor-only contracting
as defined herein shall be prohibited.
Section 2. Coverage. These Rules shall apply to all parties
of contracting and subcontracting arrangements where
employer-employee relationships exist. It shall also apply to
cooperatives engaging in contracting or subcontracting
arrangements.
Contractors and subcontractors referred to in these Rules are
prohibited from engaging in recruitment and placement
activities as defined in Article 13(b) of the Labor Code,
whether for local or overseas employment.
Section 3. Definition of terms. The following terms as used
in these Rules, shall mean:
(a) Bond/s refers to the bond under Article 108 of the Labor
Code that the principal may require from the contractor
to be posted equal to the cost of labor under contract.
The same may also refer to the security or guarantee
posted by the principal for the payment of the services of
the contractors under the Service Agreement.
(b) Cabo refers to a person or group of persons or to a
labor group which, in the guise of a labor organization,
cooperative or any entity, supplies workers to an
employer, with or without any monetary or other
consideration, whether in the capacity of an agent of the
employer or as an ostensible independent contractor.
(c) Contracting or Subcontracting refers to an
arrangement whereby a principal agrees to put out or
farm out with a contractor the performance or completion
of a specific job, work or service within a definite or
predetermined period, regardless of whether such job,
work or service is to be performed or completed within or
outside the premises of the principal.
(d) Contractor refers to any person or entity, including a
cooperative, engaged in a legitimate contracting or
subcontracting arrangement providing either services,
skilled workers, temporary workers, or a combination of
services to a principal under a Service Agreement.
(e) Contractors employee includes one employed by a
contractor to perform or complete a job, work, or service
pursuant to a Service Agreement with a principal.
It shall also refer to regular employees of the
contractor whose functions are not dependent on the
performance or completion of a specific job, work or
service within a definite period of time, i.e.,
administrative staff.
(f) In-house agency refers to a contractor which is owned,
managed, or controlled directly or indirectly by the
principal or one where the principal owns/represents any
share of stock, and which operates solely or mainly for the
principal.
(g) Net Financial Contracting Capacity (NFCC)1 refers to the
formula to determine the financial capacity of the
contractor to carry out the job, work or services sought to
be undertaken under a Service Agreement. NFCC is current
assets minus current liabilities multiplied by K, which
stands for contract duration equivalent to: 10 for one year
or less; 15 for more than one (1) year up to two (2) years;
and 20 for more than two (2) years, minus the value of all
outstanding or ongoing projects including contracts to be
started.
(h) Principal refers to any employer, whether a person or
entity, including government agencies and government-
owned and controlled-corporations, who/which puts out or
farms out a job, service or work to a contractor.
(i) Right to control refers to the right reserved to the person
for whom the services of the contractual workers are
performed, to determine not only the end to be achieved,
but also the manner and means to be used in reaching
that end.
(j) Service Agreement refers to the contract between the
principal and contractor containing the terms and
conditions governing the performance or completion of a
specific job, work or service being farmed out for a definite
or predetermined period.
(k) Solidary liability refers to the liability of the principal,
pursuant to the provision of Article 109 of the Labor Code,
as direct employer together with the contractor for any
violation of any provision of the Labor Code.
It also refers to the liability of the principal, in the
same manner and extent that he/she is liable to his/her
direct employees, to the extent of the work performed
 under the contract when the contractor fails to pay the
wages of his/her employees, as provided in Article 106 of
the Labor Code, as amended.
(l) Substantial capital refers to paid-up capital stocks/shares
of at least Three Million Pesos (P3,000,000.00) in the case
of corporations, partnerships and cooperatives; in the case
of single proprietorship, a net worth of at least Three
Million Pesos (P3,000,000.00).
(A) 1 REFERS TO THE FORMULA SET OUT IN THE
IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC
ACT NO. 9184, OR AN ACT PROVIDING FOR THE
MODERNIZATION, STANDARDIZATION AND REGULATION OF
THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND
FOR OTHER PURPO
(m) Trilateral Relationship refers to the relationship in a
contracting or subcontracting arrangement where there is
a contract for a specific job, work or service between the
principal and the contractor, and a contract of employment
between the contractor and its workers. There are three
(3) parties involved in these arrangements: the principal
who decides to farm out a job, work or service to a
contractor; the contractor who has the capacity to
independently undertake the performance of the job, work
or service; and the contractual workers engaged by the
contractor to accomplish the job, work or service.
Section 4. Legitimate contracting or
subcontracting. Contracting or subcontracting shall be
legitimate if all the following circumstances concur:
(a) The contractor must be registered in accordance with
these Rules and carries a distinct and independent
business and undertakes to perform the job, work or
service on its own responsibility, according to its own
manner and method, and free from control and direction
of the principal in all matters connected with the
performance of the work except as to the results thereof;
(b) The contractor has substantial capital and/or investment;
and
(c) The Service Agreement ensures compliance with all the
rights and benefits under Labor Laws.
Section 5. Trilateral relationship in contracting
arrangements; Solidary liability. In legitimate contracting
or subcontracting arrangement there exists:
(a) An employer-employee relationship between the
contractor and the employees it engaged to perform the
specific job, work or service being contracted; and
(b) A contractual relationship between the principal and the
contractor as governed by the provisions of the Civil
Code.
In the event of any violation of any provision of the Labor
Code, including the failure to pay wages, there exists a
solidary liability on the part of the principal and the contractor
for purposes of enforcing the provisions of the Labor Code and
other social legislation, to the extent of the work performed
under the employment contract.
However, the principal shall be deemed the direct employer of
the contractors employee in cases where there is a finding by
a competent authority of labor-only contracting, or
commission of prohibited activities as provided in Section 7,
or a violation of either Sections 8 or 9 hereof.
Section 6. Prohibition against labor-only
contracting. Labor-only contracting is hereby declared
prohibited. For this purpose, labor only contracting shall refer
to an arrangement where:
(a) The contractor does not have substantial capital or
investments in the form of tools, equipment, machineries,
work premises, among others, and the employees
recruited and placed are performing activities which are
usually necessary or desirable to the operation of the
company, or directly related to the main business of the
principal within a definite or predetermined period,
regardless of whether such job, work or service is to be
performed or completed within or outside the premises of
the principal; or
(b) The contractor does not exercise the right to control over
the performance of the work of the employee.
Section 7. Other Prohibitions. Notwithstanding Section 6 of
these Rules, the following are hereby declared prohibited for
being contrary to law or public policy:
A. Contracting out of jobs, works or services when not done in
good faith and not justified by the exigencies of the business
such as the following:
(1) Contracting out of jobs, works or services when the same
results in the termination or reduction of regular
employees and reduction of work hours or reduction or
splitting of the bargaining unit.
(2) Contracting out of work with a Cabo.
(3) Taking undue advantage of the economic situation or lack
of bargaining strength of the contractors employees, or
undermining their security of tenure or basic rights, or
circumventing the provisions of regular employment, in
any of the following instances:
(i) Requiring them to perform functions which are
currently being performed by the regular employees
of the principal; and
(ii) Requiring them to sign, as a precondition to
employment or continued employment, an antedated
resignation letter; a blank payroll; a waiver of labor
standards including minimum wages and social or
welfare benefits; or a quitclaim releasing the
principal, contractor or from any liability as to
payment of future claims.
(4) Contracting out of a job, work or service through an in-
house agency.
(5) Contracting out of a job, work or service that is necessary
or desirable or directly related to the business or
operation of the principal by reason of a strike or lockout
whether actual or imminent.
(6) Contracting out of a job, work or service being performed
by union members when such will interfere with, restrain
or coerce employees in the exercise of their rights to self-
organization as provided in Art. 248 (c) of the Labor Code,
as amended.
(7) Repeated hiring of employees under an employment
contract of short duration or under a Service Agreement
of short duration with the same or different contractors,
which circumvents the Labor Code provisions on Security
of Tenure.
(8) Requiring employees under a subcontracting
arrangement to sign a contract fixing the period of
employment to a term shorter than the term of the
Service Agreement, unless the contract is divisible into
phases for which substantially different skills are required
and this is made known to the employee at the time of
engagement.
(9) Refusal to provide a copy of the Service Agreement and
the employment contracts between the contractor and
the employees deployed to work in the bargaining unit of
the principals certified bargaining agent to the sole and
exclusive bargaining agent (SEBA).
(10) Engaging or maintaining by the principal of
subcontracted employees in excess of those provided for
in the applicable Collective Bargaining
Agreement (CBA) or as set by the Industry Tripartite
Council (ITC).
B. Contracting out of jobs, works or services analogous to the
above when not done in good faith and not justified by the
exigencies of the business.
 Section 8. Rights of contractors employees. All
contractors employees, whether deployed or assigned as
reliever, seasonal, week-ender, temporary, or promo jobbers,
shall be entitled to all the rights and privileges as provided for
in the Labor Code, as amended, to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as but not limited to service
incentive leave, rest days, overtime pay, holiday pay,
13th month pay, and separation pay as may be provided
in the Service Agreement or under the Labor Code;
(c) Retirement benefits under the SSS or retirement plans of
the contractor, if there is any;
(d) Social security and welfare benefits;
(e) Self-organization, collective bargaining and peaceful
concerted activities; and
(f) Security of tenure.
Section 9. Required contracts under these Rules. (a)
Employment contract between the contractor and its
employee. Notwithstanding any oral or written stipulations to
the contrary, the contract between the contractor and its
employee shall be governed by the provisions of Articles 279
and 280 of the Labor Code, as amended. It shall include the
following terms and conditions:
i. The specific description of the job, work or service to be
performed by the employee;
ii. The place of work and terms and conditions of employment,
including a statement of the wage rate applicable to the
individual employee; and
iii. The term or duration of employment that must be co-
extensive with the Service Agreement or with the specific
phase of work for which the employee is engaged.
The contractor shall inform the employee of the foregoing
terms and conditions of employment in writing on or before
the first day of his/her employment.
(b) Service Agreement between the principal and the
contractor. The Service Agreement shall include the following:
i. The specific description of the job, work or service being
subcontracted.
ii. The place of work and terms and conditions governing the
contracting arrangement, to include the agreed amount
of the services to be rendered, the standard
administrative fee of not less than ten percent (10%) of
the total contract cost.
iii. Provisions ensuring compliance with all the rights and benefits
of the employees under the Labor Code and these Rules
on: provision for safe and healthful working conditions;
labor standards such as, service incentive leave, rest
days, overtime pay, 13th month pay and separation pay;
retirement benefits; contributions and remittance of SSS,
Philhealth, PagIbig Fund, and other welfare benefits; the
right to self-organization, collective bargaining and
peaceful concerted action; and the right to security of
tenure.
iv. A provision on the Net Financial Contracting Capacity of the
contractor, which must be equal to the total contract
cost.
v. A provision on the issuance of the bond/s as defined in Section
3(m) renewable every year.
vi. The contractor or subcontractor shall directly remit monthly
the employers share and employees contribution to the
SSS, ECC, Philhealth and Pag-ibig.
vii. The term or duration of engagement.
The Service Agreement must conform to the DOLE Standard
Computation and Standard Service Agreement, which form
part of these Rules as Annexes A and B.
Section 10. Duties of the principal. Pursuant to the
authority of the Secretary of Labor and Employment to restrict
or prohibit the contracting of labor to protect the rights of the
workers and to ensure compliance with the provisions of the
Labor Code, as amended, the principal, as the indirect
employer or the user of the services of the contractor, is
hereby required to observe the provisions of these Rules.
Section 11. Security of tenure of contractors
employees. It is understood that all contractors employees
enjoy security of tenure regardless of whether the contract of
employment is co-terminus with the service agreement, or for
a specific job, work or service, or phase thereof.
Section 12. Observance of required standards of due
process; requirements of notice. In all cases of
termination of employment, the standards of due process laid
down in Article 277(b) of the Labor Code, as amended, and
settled jurisprudence on the matter 2, must be observed. Thus,
the following is hereby set out to clarify the standards of due
process that must be observed:
I. For termination of employment based on just causes as
defined in Article 282 of the Code, the requirement of two
written notices served on the employee shall observe the
following:
(A) The first written notice should contain:
(1) The specific causes or grounds for termination;
(2) Detailed narration of the facts and circumstances
that will serve as basis for the charge against the
employee. A general description of the charge will
not suffice;
(3) The company rule, if any, that is violated and/or the
ground under Art. 282 that is being charged against
the employee; and
(4) A directive that the employee is given opportunity to
submit a written explanation within a reasonable
period.
Reasonable period should be construed as a period of at
least five (5) calendar days from receipt of the notice to give
the employee an opportunity to study the accusation, consult
a union official or lawyer, gather data and evidence, and
decide on the defenses against the complaint.
(B) After serving the first notice, the employer should afford
the employee ample
opportunity to be heard and to defend himself/herself with the
assistance of his/her representative if he/she so desires, as
provided in Article 277(b) of the Labor Code, as amended.
Ample opportunity to be heard means any meaningful
opportunity (verbal or written) given to the employee to
answer the charges against him/her and submit
2
KING OF KINGS TRANSPORT, INC., CLAIRE DELA FUENTE, AND
MELISSA URN, VS. SANTIAGO 0. MAMAC, G.R. NO. 166208, (29
JUNE 2007); AND FELIX B. PEREZ AND AMANTE G. DORIA V.
PHILIPPINE TELEGRAPH AND TELEPHONE COMPANY AND JOSE
LUIS SANTIAGO, G.R. NO. 152048, (7 APRIL 2009), (EN BANC
evidence in support of his/her defense, whether in a hearing,
conference or some other fair, just and reasonable way. A
formal hearing or conference becomes mandatory only when
requested by the employee in writing or substantial
evidentiary disputes exist or a company rule or practice
requires it, or when similar circumstances justify it.
(C) After determining that termination of employment is
justified, the employer contractor shall serve the employee
a written notice of termination indicating that: (1) all
circumstances involving the charge against the employees
have been considered; and (2) the grounds have been
established to justify the severance of their employment.
The foregoing notices shall be served on the employees last
known address.
1. For termination of employment based on authorized
causes defined in Article 283 of the Labor Code, the
 requirement of due process shall be deemed complied
with upon service of a written notice to the employee and
the appropriate regional office of the Department of Labor
and Employment at least thirty days before the effectivity
of the termination, specifying the ground or grounds for
termination.
2. If the termination is brought about by the completion
of the contract or phase thereof, no prior notice is
required. If the termination is brought about by the failure
of a probationary employee to meet the reasonable
standards of the employer, which was made known to the
employee at the time of his/her employment, it shall be
sufficient that a written notice is served upon the
employee within a reasonable time prior to the expiration
of the probationary period.
Section 13. Effect of termination of employment. The
termination of employment of the contractor employee prior
to the expiration of the Service Agreement shall be governed
by Articles 282, 283 and 284 of the Labor Code.
In case the termination of employment is caused by the pre-
termination of the Service Agreement not due to authorized
causes under Article 283, the right of the contractor employee
to unpaid wages and other unpaid benefits including
unremitted legal mandatory contributions, e.g., SSS,
Philhealth, Pag-ibig, ECC, shall be borne by the party at fault,
without prejudice to the solidary liability of the parties to the
Service Agreement.
Where the termination results from the expiration of the
service agreement, or from the completion of the phase of the
job, work or service for which the employee is engaged, the
latter may opt for payment of separation benefits as may be
provided by law or the Service Agreement, without prejudice
to his/her entitlement to the completion bonuses or other
emoluments, including retirement benefits whenever
applicable.
Section 14. Mandatory Registration and Registry of
Legitimate Contractors. Consistent with the authority of
the Secretary of Labor and Employment to restrict or prohibit
the contracting out of labor to protect the rights of workers, it
shall be mandatory for all persons or entities, including
cooperatives, acting as contractors to register with the
Regional Office of the Department of Labor and Employment
(DOLE) where it principally operates.
Failure to register shall give rise to the presumption that the
contractor is engaged in labor-only contracting.
Accordingly, the registration system governing contracting
arrangements and implemented by the Regional Offices of the
DOLE is hereby established, with the Bureau of Working
Conditions (BWC) as the central registry.
Section 15. Requirements for registration. The
application for registration as a contractor shall be filed at the
DOLE Regional Office in the region where it seeks to
principally operate. The applicant shall provide in the
application form the following information:
(a) The name and business address of the applicant and the
areas where it seeks to operate;
(b) The names and addresses of officers, if the applicant is a
corporation, partnership, cooperative or a labor
organization;
(c) The nature of the applicants business and the industry or
industries where the applicant seeks to operate;
(d) The number of regular workers and the total workforce;
(e) The list of clients, if any, the number of personnel
assigned to each client, if any, and the services provided
to the client;
(f) The description of the phases of the contract, including
the number of employees covered in each phase, where
appropriate; and
(g) Proof of compliance with substantial capital requirement
as defined in Section 3(l) of these Rules.
The application shall be supported by:
(a) A certified true copy of a certificate of registration of firm
or business name from the Securities and Exchange
Commission (SEC), Department of Trade and Industry
(DTI), Cooperative Development Authority (CDA), or from
the DOLE if the applicant is a labor organization;
(b) A certified true copy of the license or business permit
issued by the local government unit or units where the
contractor operates;
(c) A certified listing, with proof of ownership or lease
contract, of facilities, tools, equipment, premises
implements, machineries and work premises, that are
actually and directly used by the contractor in the
performance or completion of the job, work or service
contracted out. In addition, the applicant shall submit a
photo of the office building and premises where it holds
office;
(d) A copy of audited financial statements if the applicant is a
corporation, partnership, cooperative or a labor
organization, or copy of the latest ITR if the applicant is a
sole proprietorship; and
(e) A sworn disclosure that the registrant, its officers and
owners or principal stockholders or any one of them, has
not been operating or previously operating as a
contractor under a different business name or entity or
with pending cases of violations of these Rules and/or
labor standards, or with a cancelled registration. In case
any of the foregoing has a pending case, a copy of the
complaint and the latest status of the case shall be
attached.
The application shall be verified. It shall include a DOLE
certification of attendance to orientation seminar on these
Rules and an undertaking that the contractor shall abide by all
applicable labor laws and regulations.
Section 16. Filing and processing of application. The
application with all supporting documents shall be filed in
triplicate in the Regional Office where the applicant principally
operates. No application for registration shall be accepted
unless all the requirements in the preceding Section are
complied with.
Section 17. Verification inspection. Within two (2) working
days upon receipt of the application with complete supporting
documents, the authorized representative of the Regional
Director shall conduct a verification inspection of the facilities,
tools, equipment, and work premises of the applicant.
Section 18. Approval or denial of the application. The
Regional Office shall deny or approve the application within
one (1) working day after the verification inspection.
Applications that fail to meet the requirements set forth in
Section 15 of these Rules shall be denied.
Section 19. Registration fee. Payment of registration fee of
Twenty-Five Thousand Pesos (P25,000.00) shall be required
upon approval of the application.
Upon registration, the Regional Office shall return one set of
the duly-stamped application documents to the applicant,
retain one set for its file, and transmit the remaining set to the
Bureau of Working Conditions (BWC) within five (5) days from
registration.

Section 20. Validity of certificate of registration of
contractors. The contractor shall be deemed registered only
on the date of issuance of its Certificate of Registration.
The Certificate of Registration shall be effective for three (3)
years, unless cancelled after due process. The same shall be
valid in the region where it is registered.
In case the contractor has Service Agreements or operates
outside the region where it is registered, it shall request a duly
authenticated copy of its Certificate of Registration from the
registering Regional Office and submit the same to the DOLE
Regional Office where it seeks to operate, together with a
copy of its Service Agreement/s in the area, for purposes of
monitoring compliance with these Rules.
Section 21. Renewal of registration. All registered
contractors shall apply for renewal of their Certificates of
Registration thirty (30) days before the expiration of their
registration to remain in the roster of legitimate service
contractors. The applicant shall pay a registration renewal fee
of Twenty-Five Thousand Pesos (P25,000.00) to the DOLE
Regional Office.
Copies of all the updated supporting documents in letters (a)
to (e) of Section 15 hereof shall be attached to the duly
accomplished application form, including the following:
(a) Certificate of membership and proof of payment of SSS,
Philhealth, BIR, ECC and Pag-Ibig contributions for the last
three (3) years, as well as loan amortizations; and
(b) Certificate of pending or no pending labor standards
violation case/s with the National Labor Relations
Commission (NLRC) and Department of Labor and
Employment (DOLE). The pendency of a case will not
prejudice the renewal of the registration, unless there is a
finding of violation of labor standards by the DOLE
Regional Director.
Section 22. Semi-annual reporting. The contractor shall
submit in triplicate its subscribed semi-annual report using a
prescribed form to the appropriate Regional Office. The report
shall include:
(a) A list of contracts entered with the principal during the
subject reporting period;
(b) The number of workers covered by each contract with the
principal;
(c) Proof of payment of remittances to the Social Security
System (SSS), the Pag-lbig Fund, Philhealth, Employees
Compensation Commission (ECC), and Bureau of Internal
Revenue (BIR) due its employees during the subject
reporting period and of amortization of declared loans
due from its employees; and
(d) A certified listing of all cases filed against the contractor
before the NLRC and DOLE.
The Regional Office shall return one set of the duly-stamped
report to the contractor, retain one set for its file, and transmit
the remaining set to the Bureau of Working Conditions (BWC)
within five (5) days from receipt thereof.
Section 23. Grounds for cancellation of
registration. The Regional Director shall, upon a verified
complaint, cancel or revoke the registration of a contractor
after due process, based on any of the following grounds:
(a) Misrepresentation of facts in the application;
(b) Submission of a falsified or tampered application or
supporting documents to the application for registration;
(c) Non-submission of Service Agreement between the
principal and the contractor when required to do so;
(d) Non-submission of the required semi-annual report as
provided in Section 22 (Semi-annual reporting) hereof;
(e) Findings through arbitration that the contractor has
engaged in labor-only contracting and/or the prohibited
activities as provided in Section 7 (Other Prohibitions)
hereof;
(f) Non-compliance with labor standards and working
conditions;
(g) Findings of violation of Section 8 (Rights of contractors
employees) or Section 9 (Required contracts) of these
Rules;
(h) Non-compliance with SSS, the HDMF, Pag-Ibig, Philhealth,
and ECC laws; and
(i) Collecting any fees not authorized by law and other
applicable rules and regulations.
Section 24. Due process in cancellation of
registration. Complaint/s based on any of the grounds
enumerated in the preceding Section against the contractor
shall be filed in writing and under oath with the Regional
Office which issued the Certificate of Registration.
The complaint/s shall state the following:
(a) The name/s and address/es of the complainant/s;
(b) Name and address of the contractor;
(c) The ground/s for cancellation;
(d) When and where the action complained of happened;
(e) The amount of money claim, if any; and
(f) The relief/s sought.
Upon receipt of the complaint, the Regional Director shall
direct the contractor, with notice to the complainant, to file a
verified answer/counter affidavit within ten (10) calendar days
without extension, incorporating therein all pertinent
documents in support of his/her defenses, with proof of
service of a copy to the complainant. Failure to file an
answer/counter affidavit shall constitute a waiver on the part
of the respondent. No motion to dismiss shall be entertained.
The Regional Director or his duly authorized representative
may conduct a clarificatory hearing within the prescribed ten
(10) calendar days within which to file a verified
answer/counter affidavit.
Within the said ten (10) calendar days period, the contractor
shall make the necessary corrections/rectifications on the
violations that are immediately rectifiable upon its own
initiative in order to be fully compliant.
The Regional Director may avail himself of all reasonable
means to ascertain the facts of the case, including conduct of
inspection, where appropriate, and examination of informed
persons.
The proceedings before the Regional Office shall be summary
in nature.
The conduct of hearings shall be terminated within fifteen (15)
calendar days from the first scheduled clarificatory hearing.
The Regional Director shall resolve the case within ten (10)
working days from the date of the last hearing. If there is no
necessity to conduct a hearing, the case shall be resolved
within ten (10) working days from receipt of the verified
answer/counter affidavit.
Any motion for reconsideration from the Order of the Regional
Director shall be treated as an appeal.
Section 25. Appeal. The Order of the Regional Director is
appealable to the Secretary within ten (10) working days from
receipt of the copy of the Order. The appeal shall be filed with
the Regional Office which issued the cancellation Order. The
Office of the Secretary shall have thirty (30) working days
from receipt of the records of the case to resolve the appeal.
The Decision of the Secretary shall become final and
executory after ten (10) days from receipt thereof by the
parties. No motion for reconsideration of the Decision shall be
entertained.
Section 26. Effects of cancellation of registration. A final
Order of cancellation shall divest the contractor of its
legitimate status to engage in contracting/subcontracting.
Such Order of cancellation shall be a ground to deny an
application for renewal of registration to a contractor under
the Rules.
The cancellation of the registration of the contractor for
engaging in labor-only contracting or for violation of any of
the provisions of these Rules involving a particular Service
Agreement will not, however, impair the validity of existing
legitimate job-contracting arrangements the contractor may
have entered into with other principals prior to the
cancellation of its registration. Any valid and subsisting
Service Agreement shall be respected until its expiration;
thereafter, contracting with a delisted contractor shall make
the principal direct employer of all employees under the
Service Agreement pursuant to Articles 106 and 109 of the
Labor Code.
Section 27. Effects of finding of labor-only contracting
and/or violation of Sections 7. 8 or 9 of the Rules. A
finding by competent authority of labor-only contracting shall
render the principal jointly and severally liable with the
contractor to the latters employees, in the same manner and
extent that the principal is liable to employees directly hired
by him/her, as provided in Article 106 of the Labor Code, as
amended. A finding of commission of any of the prohibited
activities in Section 7, or violation of either Sections 8 or 9
hereof, shall render the principal the direct employer of the
employees of the contractor or subcontractor, pursuant to
Article 109 of the Labor Code, as amended.
Section 28. Retaliatory measures. Pursuant to Article 118
of the Labor Code, as amended, it shall be unlawful for the
principal, contractor, or any party privy to the contract or
services provided to refuse to pay or reduce the wages and
benefits, and discharge or in any manner discriminate against
any worker who has filed any complaint or instituted any
proceeding on wages (under Title II, Book III of the Labor
Code), labor standards violation, or has testified or is about to
testify in such proceedings.
Section 29. Enforcement of labor standards and
working conditions. Consistent with Article 128 (Visitorial
and Enforcement Power) of the Labor Code, as amended, the
Regional Director through his/her duly authorized
representatives, shall conduct routine inspection of
establishments engaged in contracting arrangement
regardless of the number of employees engaged by the
principal or by the contractor. They shall have access to
employers records and premises at any time of the day or
night whenever work is being undertaken therein, and the
right to copy therefrom, to question any employee and
investigate any fact, condition or matter which may be
necessary to determine violations or which may aid in the
enforcement of the Labor Code and of any labor law, wage
order, or rules and regulations issued pursuant thereto.
The findings of the duly authorized representative shall be
referred to the Regional Director for appropriate action as
provided for in Article 128, and shall be furnished the
collective bargaining agent, if any.
Based on the visitorial and enforcement power of the
Secretary of Labor and Employment in Article 128 (a), (b), (c),
and (d), the Regional Director shall issue compliance orders to
give effect to the labor standards provisions of the Labor Code
other labor legislation, and these Rules.
Section 30. Duty to produce copy of contract between
the principal and the contractor. The principal or the
contractor shall be under an obligation to produce a copy of
the Service Agreement in the ordinary course of inspection.
The contractor shall likewise be under an obligation to
produce a copy of any contract of employment when directed
to do so by the Regional Office Director or his/her authorized
representative.
Section 31. Tripartite implementation and monitoring
of compliance; Use of registration fees. A region-based
tripartite monitoring team on the observance of labor
standards in contracting and subcontracting arrangements
shall be constituted as a subcommittee of the Regional
Tripartite Industrial Peace Council (RTIPC) within fifteen (15)
days from the effectivity of these Rules. It shall submit a
quarterly regional monitoring report to the DOLE Secretary
and to the National Tripartite Industrial Peace Council (NTIPC).
The Bureau of Working Conditions (BWC) shall ensure the
implementation of this provision, and shall conduct capacity
building to the members of the regional tripartite monitoring
team.
For this purpose, a portion of the collected registration fees
shall be used in the operation of the region-based tripartite
monitoring team, including in the development of an internet-
based monitoring system and database. It shall likewise be
used for transmittal of the monthly report of all registered
contractors to the Bureau of Local Employment (BLE), and in
generating labor market information.
Section 32. Oversight function of the National TIPC. The
National Tripartite Industrial Peace Council (NTIPC) as created
under Executive Order No. 49, Series of 1998, as amended,
shall serve as the oversight committee to verify and monitor
the following:
(a) Engagement in allowable contracting activities; and
(b) e with administrative reporting requirements.
Section 33. Collective bargaining and/or Industry Section 37. Prohibition on DOLE officials or
Tripartite Council (ITC). Nothing herein shall preclude the employees. Any official or employee of the DOLE or its
parties in collective bargaining agreements (CBAs) to attached agencies is prohibited from engaging or having any
determine the functions that can or cannot be farmed out or interest in any contracting or subcontracting business.
contracted out to a legitimate contractor, including the terms
and conditions of the workers engagement under the
arrangement, provided the provisions of these Rules are
observed.

In industries with established Industry Tripartite Councils PRESIDENTIAL DECREE No. 851 December 16,
(ITCs), the tripartite partners may agree, through a voluntary 1976
code of good practices, on the functions or processes that can
or cannot be contracted out to a legitimate contractor.
REQUIRING ALL EMPLOYERS TO PAY THEIR EMPLOYEES
A 13th-MONTH PAY
Section 34. Financial Relief Program; Tripartite Co-
Regulation Engagement. A Financial Relief Program or
Unemployment Assistance Fund shall be established for
employees under a Service Agreement or employees in Section 1. All employers are hereby required to pay all their
transition from one Service Agreement to the next. For this employees receiving a basic salary of not more than P1,000 a
purpose, the National Tripartite Industrial Peace Council month, regardless of the nature of their employment, a 13th-
(NTIPC), upon the effectivity of this issuance, shall constitute a month pay not later than December 24 of every year.
Local Service Provider Tripartite Working Group (LSP-TWG)
composed of representatives of the stakeholders in the
industry. The LSP-TWG shall:
Section 2. Employers already paying their employees a 13th-
(a) Recommend the mechanics and details in setting up the month pay or its equivalent are not covered by this Decree.
Financial Relief Program or Unemployment Assistance
Fund with proposed funding sources before end of June
2012; and RULES AND REGULATIONS IMPLEMENTING
(b) Draw-up the terms of a Tripartite Co-Regulation PRESIDENTIAL DECREE NO. 851
Engagement in ensuring full compliance with labor laws
for approval/endorsement by the NTIPC, including a
proposed Table of Progressive Rate of Increases in the
minimum capitalization requirement at reasonable
intervals to ensure that only legitimate contractors can Section 1. Payment of 13-month Pay. All employers
engage in subcontracting arrangement.
covered by Presidential Decree No. 851, hereinafter referred
to as the "Decree", shall pay to all their employees receiving a
Section 35. Enrollment in DOLE programs on improving basic salary of not more than P1,000 a month a thirteenth-
compliance with labor standards. For purposes of month pay not later than December 24 of every year.
ensuring compliance with labor standards, the principal and
subcontractors covered by these Rules are encourage to enroll
and participate in the DOLE Kapatiran Work Improvement for
Small Enterprise (WISE)-TAV Program (Department Advisory
No. 06, dated 07 March 2011) and/or in the Incentivizing Section 2. Definition of certain terms. As used in this
Compliance Program (Department Order No. 115-11). issuance.

(a) "Thirteenth-moth pay" shall mean one twelfth (1/12) of

Section 36. Contracting or subcontracting the basic salary of an employee within a calendar year;
arrangements in the Construction and Other
Industries. Contracting or subcontracting arrangements in
the Construction Industry, under the licensing coverage of the (b) "Basic salary" shall include all remunerations or earnings
Philippine Construction Accreditation Board (PCAB), shall be paid by an employer to an employee for services
covered by the applicable provisions of these Rules and shall rendered but may not include cost-of-living allowances
continue to be governed by Department Order No. 19, Series granted pursuant to Presidential Decree No. 525 or Letter
of 1993 (Guidelines Governing the Employment of Workers in of Instructions No. 174, profit-sharing payments, and all
the Construction Industry); Department Order No. 13, Series allowances and monetary benefits which are not
of 1998 (Guidelines Governing the Occupational Safety and considered or integrated as part of the regular or basic
Health in the Construction Industry); and DOLE-DPWH-DILG- salary of the employee at the time of the promulgation of
DTI and PCAB Memorandum of Agreement-Joint the Decree on December 16, 1975.
Administrative Order No. 1, Series of 2011 (on coordination
and harmonization of policies and programs on occupational
safety and health in the construction industry).

Section 3. Employers covered. The Decree shall apply to

In industries covered by a separate regulation of the DOLE or
other government agency, contracting or subcontracting
therein shall be governed by these Rules unless expressly
provided otherwise.
all employers except to:
(a) Distressed employers, such as (1) those which are
currently incurring substantial losses or (2) in the case of
non-profit institutions and organizations, where their
income, whether from donations, contributions, grants
 and other earnings from any source, has consistently
declined by more than forty (40%) percent of their normal
income for the last two (2) years, subject to the provision
of Section 7 of this issuance;
(b) The Government and any of its political subdivisions,
including government-owned and controlled corporations,
except those corporations operating essentially as private
subsidiaries of the Government;
(c) Employers already paying their employees 13-month pay
or more in a calendar year of its equivalent at the time of
this issuance;
(d) Employers of household helpers and persons in the
personal service of another in relation to such workers;
and
(e) Employers of those who are paid on purely commission,
boundary, or task basis, and those who are paid a fixed
amount for performing a specific work, irrespective of the
time consumed in the performance thereof, except where
the workers are paid on piece-rate basis in which case the
employer shall be covered by this issuance insofar as
such workers are concerned.
As used herein, workers paid on piece-rate basis shall refer
to those who are paid a standard amount for every piece or
unit of work produced that is more or less regularly replicated,
without regard to the time spent in producing the same.
The term "its equivalent" as used in paragraph c) hereof
shall include Christmas bonus, mid-year bonus, profit-sharing
payments and other cash bonuses amounting to not less than
1/12th of the basic salary but shall not include cash and stock
dividends, cost of living allowances and all other allowances
regularly enjoyed by the employee, as well as non-monetary
benefits. Where an employer pays less than 1/12th of the
employees basic salary, the employer shall pay the difference.
Section 4. Employees covered. Except as provided in
Section 3 of this issuance, all employees of covered
employers shall be entitled to benefit provided under the
Decree who are receiving not more than P1,000 a month,
regardless of their position, designation or employment
status, and irrespective of the method by which their wages
are paid, provided that they have worked for at least one
month during the calendar year.
Section 5. Option of covered employers. A covered
employer may pay one-half of the 13th-month pay required by
the Decree before the opening of the regular school year and
the other half on or before the 24th day of December of every
year.
In any establishment where a union has been recognized or
certified as the collective bargaining agent of the employees
therein, the periodicity or frequency of payment of the 13th
month pay may be the subject of agreement.
Nothing herein shall prevent employers from giving the
benefits provided in the Decree to their employees who are
receiving more than One Thousand (P1,000) Pesos a month or
benefits higher than those provided by the Decree.
Section 6. Special feature of benefit. The benefits
granted under this issuance shall not be credited as part of
the regular wage of the employees for purposes of
determining overtime and premium pay, fringe benefits, as
well as premium contributions to the State Insurance Fund,
social security, medicare and private welfare and retirement
plans.
Section 7. Exemption of Distressed employers.
Distressed employers shall qualify for exemption from the
requirement of the Decree upon prior authorization by the
Secretary of Labor. Petitions for exemptions may be filed
within the nearest regional office having jurisdiction over the
employer not later than January 15, 1976. The regional offices
shall transmit the petitions to the Secretary of Labor within 24
hours from receipt thereof.
Section 8. Report of compliance. Every covered employer
shall make a report of his compliance with the Decree to the
nearest regional labor office not later than January 15 of each
year.
The report shall conform substantially with the following form:
REPORT ON COMPLIANCE WITH PD NO. 851
1. Name of establishment
2. Address
3. Principal product or business
4. Total employment
5. Total number of workers benefited
6. Amount granted per employee
7. Total amount of benefits granted
8. Name, position and tel. no. of person giving
information
Section 9. Adjudication of claims Non-payment of the
thirteenth-month pay provided by the Decree and these rules
shall be treated as money claims cases and shall be
processed in accordance with the Rules Implementing the
Labor Code of the Philippines and the Rules of the National
Labor Relations Commission.
a. Liability of an indirect employer
Article 107. Indirect employer. The provisions of the
immediately preceding Article shall likewise apply to any
person, partnership, association or corporation which, not
being an employer, contracts with an independent contractor
for the performance of any work, task, job or project.

b. Posting of bond
Article 108. An employer or indirect employer may require
the contractor or sub-contractor to furnish a bond equal to the
cost of labor under contract, on condition that the bond will
answer for the wages due the employees should the
contractor or sub-contractor, as the case may be, fail to pay
the same.

c. Solidarity liability
Article 109. Solidary liability. The provisions of existing
laws to the contrary notwithstanding, every employer or
indirect employer shall be held responsible with his contractor
or sub-contractor for any violation of any provision of this
Code. For purposes of determining the extent of their civil
liability under this Chapter, they shall be considered as direct
employers.

11. Worker preference in case of bankruptcy

Article 110. Worker preference in case of bankruptcy. In

the event of bankruptcy or liquidation of an employer's
business, his workers shall enjoy first preference as regards
their unpaid wages and other monetary claims, any provision
of law to the contrary notwithstanding. Such unpaid wages
and monetary claims shall be paid in full before the claims of
the Government and other creditors may be paid.

12. Wage distortion

13. 13th Month Pay Law

PRESIDENTIAL DECREE No. 851

Section 1. All employers are hereby required to pay all their

employees receiving a basic salary of not more than P1,000 a
month, regardless of the nature of their employment, a 13th-
month pay not later than December 24 of every year.

Section 2. Employers already paying their employees a 13th-

month pay or its equivalent are not covered by this Decree.
SKIM
every piece or unit of work produced that is more or
less regularly replicated, without regard to the time
spent in producing the same.

The term "its equivalent" as used in paragraph c)

hereof shall include Christmas bonus, mid-year bonus,
profit-sharing payments and other cash bonuses
amounting to not less than 1/12th of the basic salary
but shall not include cash and stock dividends, cost of
RULES AND REGULATIONS IMPLEMENTING
living allowances and all other allowances regularly
PRESIDENTIAL DECREE NO. 851
enjoyed by the employee, as well as non-monetary
benefits. Where an employer pays less than 1/12th of
By virtue of the powers vested in me by law, the
the employees basic salary, the employer shall pay the
following rules and regulations
difference.
implementing Presidential Decree No. 851 are hereby
issued for the guidance of all concerned.
Sec. 4. Employees covered. - Except as provided in
Section 3 of this issuance, all employees of covered
Section 1. Payment of 13th-month Pay. - All employers
employers shall be entitled to benefit provided under
covered by Presidential Decree No. 851, hereinafter
the Decree who are receiving not more than P1,000 a
referred to as the "Decree" , shall pay to all their
month, regardless of their position, designation or
employees receiving a basic salary of not more than
employment status, and irrespective of the method by
P1,000 a month a thirteenth-month pay not later than
which their wages are paid, provided that they have
December 24 of every year.
worked for at least one month during the calendar
year.
Sec. 2. Definition of certain terms. - As used in this
issuance:
Sec. 5. Option of covered employers. - A covered
(a) "Thirteenth-month pay" shall mean one twelfth
employer may pay one-half of the 13th-month pay
(1/12) of the basic salary of an employee within a
required by the Decree before the opening of the
calendar year;
regular school year and the other half on or before the
24th day of December of every year.
(b) "Basic salary" shall include all remunerations or
earnings paid by an employer to an employee for
In any establishment where a union has been
services rendered but may not include cost-of-living
recognized or certified as the collective bargaining
allowances granted pursuant to Presidential Decree
agent of the employees therein, the periodicity or
No. 525 or Letter of Instructions No. 174, profit-sharing
frequency of payment of the 13th-month pay may be
payments, and all allowances and monetary benefits
the subject of agreement.
which are not considered or integrated as part of the
regular or basic salary of the employee at the time of
Nothing herein shall prevent employers from giving the
the promulgation of the Decree on December 16, 1975.
benefits provided in the Decree to their employees
who are receiving more than One Thousand (P1,000)
Sec. 3. Employers covered. - The Decree shall apply to
Pesos a month or benefits higher than those provided
all employers except to:
by the Decree.
(a) Distressed employers, such as (1) those which are
Sec. 6. Special feature of benefit. - The benefits
currently incurring substantial losses or (2) in the case
granted under this issuance shall not be credited as
of non-profit institutions and organizations, where
part of the regular wage of the employees for purposes
their income, whether from donations, contributions,
of determining overtime and premium pay, fringe
grants and other earnings from any source, has
benefits, as well as premium contributions to the State
consistently declined by more than forty (40%) percent
Insurance Fund, social security, medicare and private
of their normal income for the last two (2) years,
welfare and retirement plans.
subject to the provision of Section 7 of this issuance;
Sec. 7. Exemption of Distressed employers. -
(b) The Government and any of its political
Distressed employers shall qualify for exemption from
subdivisions, including government-owned and
the requirement of the Decree upon prior authorization
controlled corporations, except those corporations
by the Secretary of Labor. Petitions for exemptions
operating essentially as private subsidiaries of the
may be filed within the nearest regional office having
Government;
jurisdiction over the employer not later than January
15, 1976. The regional offices shall transmit the
(c) Employers already paying their employees 13-
petitions to the Secretary of Labor within 24 hours
month pay or more in a calendar year or its equivalent
from receipt thereof.
at the time of this issuance;
Sec. 8. Report of compliance. - Every covered employer
(d) Employers of household helpers and persons in the
shall make a report of his compliance with
personal service of another in relation to such workers;
the Decree to the nearest regional labor office not later
and
than January 15 of each year.
(e) Employers of those who are paid on purely
The report shall conform substantially with the
commission, boundary, or task basis, and those who
following form:
are paid a fixed amount for performing a specific work,
REPORT ON COMPLIANCE WITH P.D. NO. 851
irrespective of the time consumed in the performance
1. Name of establishment
thereof, except where the workers are paid on piece-
2. Address
rate basis in which case the employer shall be covered
3. Principal product or business
by this issuance insofar as such workers are
4. Total employment
concerned.
5. Total number of workers benefited
6. Amount granted per employee
As used herein, workers paid on piece-rate basis shall
7. Total amount of benefits granted
refer to those who are paid a standard amount for
8. Name, position and tel. no. of person giving
information

Sec. 9. Adjudication of claims. - Non-payment of the

thirteenth-month pay provided by the Decree and
these rules shall be treated as money claims cases and
shall be processed in accordance with the Rules
Implementing the Labor Code of the Philippines and
the Rules of the National Labor Relations Commission.

Sec. 10. Prohibition against reduction or elimination of

benefits. - Nothing herein shall be construed to
authorize any employer to eliminate, or diminish in any
way, supplements, or other employee benefits or
favorable practice being enjoyed by the employee at
the time of promulgation of this issuance.
14. Attorneys fees in cases of unlawful withholding of wages
Article 111. Attorney's fees.
a. In cases of unlawful withholding of wages the
culpable party may be assessed attorney's fees
equivalent to ten percent of the amount of wages
recovered.
b. It shall be unlawful for any person to demand or
accept, in any judicial or administrative proceedings
for the recovery of the wages, attorney's fees which
exceed ten percent of the amount of wages
recovered.
15. Non-interference in wage disposal
Article 112. Non-interference in disposal of wages. No
employer shall limit or otherwise interfere with the freedom of
any employee to dispose of his wages. He shall not in any
manner force, compel, or oblige his employees to purchase
merchandise, commodities, or other property from the
employer or from any other person or otherwise make use of
any store or services of such employer or any other person.
Article 1705. The laborers wages shall be paid in legal
currency.
Article 1706. Withholding of the wages, except for a debt
due, shall not be made by the employer.
Article 1707. The laborers wages shall be a lien on the
goods manufactured or the work done.
Article 1708. The laborers wages shall not be subject to
execution or attachment, except for debts incurred for food,
shelter, clothing and medical attendance.
Article 1709. The employer shall neither seize nor retain any
tool or other articles belonging to the laborer.
Article 288. Other Similar Coercions (Compulsory
Purchase of Merchandise and Payment of Wages by Means of
Tokens). The penalty of arresto mayor or a fine ranging
from 200 to 500 pesos, or both, shall be imposed upon any
person, agent or officer of any association or corporation who
shall force or compel, directly or indirectly, or shall knowingly
permit any laborer or employee employed by him or by such
firm or corporation to be forced or compelled, to purchase
merchandise or commodities of any kind.
The same penalties shall be imposed upon any person who
shall pay the wages due a laborer or employee employed by
him, by means of tokens or objects other than the legal tender
currency of the Philippine Islands, unless expressly requested
by the laborer or employee.
16. Wage deductions
Article 113. Wage Deduction. No employer, in his own
behalf or in behalf of any person, shall make any deduction
from the wages of his employees except:
a. In case where the workers is insured with his consent
by the employer, and the deduction is to recompense
the employer for the amount paid by him as
premium on the insurance;
b. For union dues, in cases where the right of the
worker of his union to check off has been recognized
by the employer or authorized in writing by the
individual worker concerned; and
c. In cases where the employer is authorized by law or
regulations issued by the Secretary of Labor.
17. Other provisions on wages
Article 114. Deposits for loss or damage. No employer
shall require his worker to make deposits from which
deductions shall be made, for the reimbursement of loss of or
damage to tools, materials, or equipment supplied by the
employer, except when the employer is engaged in such
trades, occupations or businesses where the practice of
making deductions or requiring deposits is a recognized one,
or is necessary or desirable as determined by the Secretary of
Labor in appropriate rules and regulations.
Article 115. Limitations. No deduction from the deposits of
an employee for the actual amount of the loss or damage
shall be made unless the employee has been heard thereon,
and his responsibility has been clearly shown.
Article 116. Withholding of wages and kickbacks prohibited.
It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce
him to give up any part of his wages by force, stealth,
intimidation, threat or dismissal or by any other means
whatsoever without the worker's consent.
Article 117. Deduction to ensure employment. It shall be
unlawful to make any deduction from the wages of any
employee for the benefit of the employer or his representative
or intermediary as consideration of a promise of employment
or retention in employment.
Article 118. It shall be unlawful for an employer to refuse to
pay or reduce the wages and benefits, discharge or in any
manner discriminate against any employee who has filed any
complaint or instituted any proceeding under this Title or has
testified or is about to testify in such proceedings.
Article 119. False reporting. It shall be unlawful for any
person to make any statement, report, or record filed or kept
pursuant to the provisions of this Code knowing such
statement, report or record to be false in any material
respect.
Section 5. Direct payment of wages. Payment of wages
shall be made direct to the employee entitled thereto except
in the following cases:
(a) Where the employer is authorized in writing by
the employee to pay his wages to a member of his
family;
(b) Where payment to another person of any part of
the employee's wages is authorized by existing law,
including payments for the insurance premiums of
the employee and union dues where the right to
check-off has been recognized by the employer in
accordance with a collective agreement or
authorized in writing by the individual employees
concerned; or
(c) In case of death of the employee as provided in
the succeeding Section.
Section 6. Wages of deceased employee. The payment of
the wages of a deceased employee shall be made to his heirs
without the necessity of intestate proceedings. When the heirs
are of age, they shall execute an affidavit attesting to their
relationship to the deceased and the fact that they are his
heirs to the exclusion of all other persons. In case any of the
heirs is a minor, such affidavit shall be executed in his behalf
by his natural guardian or next of kin. Upon presentation of
the affidavit to the employer, he shall make payment to the
heirs as representative of the Secretary of Labor and
Employment.
Section 7. Civil liability of employer and contractors. Every
employer or indirect employer shall be jointly and severally
liable with his contractor or sub-contractor for the unpaid
wages of the employees of the latter. Such employer or
indirect employer may require the contractor or sub-
contractor to furnish a bond equal to the cost of labor under
contract on condition that the bond will answer for the wages
due the employees should the contractor or subcontractor, as
the case may be, fail to pay the same.
Section 8. Job Contracting. There is job contracting
permissible under the Code if the following conditions are
met:
(a) The contractor carries on an independent
business and undertakes the contract work on his
own account under his own responsibility according
to his own manner and method, free from the control
and direction of his employer or principal in all
matters connected with the performance of the work
except as to the results thereof; and
(b) The contractor has substantial capital or
investment in the form of tools, equipment,
machineries, work premises, and other materials
which are necessary in the conduct of his business.
Section 9. Labor-only contracting. (a) Any person who
undertakes to supply workers to an employer shall be deemed
to be engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment
in the form of tools, equipment, machineries, work
premises and other materials; and
(2) The workers recruited and placed by such person
are performing activities which are directly related to
the principal business or operations of the employer
in which workers are habitually employed.
(b) Labor-only contracting as defined herein is hereby
prohibited and the person acting as contractor shall
be considered merely as an agent or intermediary of
the employer who shall be responsible to the workers
in the same manner and extent as if the latter were
directly employed by him.
(c) For cases not falling under this Rule, the Secretary of Labor
and Employment shall determine through appropriate orders
whether or not the contracting out of labor is permissible in
the light of the circumstances of each case and after
considering the operating needs of the employer and the
rights of the workers involved. In such case, he may prescribe
conditions and restrictions to insure the protection and
welfare of the workers.'
Section 10. Payment of wages in case of bankruptcy.
Unpaid wages earned by the employees before the
declaration of bankruptcy or judicial liquidation of the
employer's business shall be given first preference and shall
be paid in full before other creditors may establish any claim
to a share in the assets of the employer.
Section 11. Attorney's fees. Attorney's fees in any judicial
or administrative proceedings for the recovery of wages shall
not exceed 10 percent of the amount awarded. The fees may
be deducted from the total amount due the winning party.
Section 12. Non-interference in disposal of wages. No
employer shall limit or otherwise interfere with the freedom of
any employee to dispose of his wages and no employer shall
in any manner oblige any of his employees to patronize any
store or avail of the services offered by any person.
Section 13. Wages deduction. Deductions from the wages
of the employees may be made by the employer in any of the
following cases:
(a) When the deductions are authorized by law,
including deductions for the insurance premiums
advanced by the employer in behalf of the employee
as well as union dues where the right to check-off
has been recognized by the employer or authorized
in writing by the individual employee himself.
(b) When the deductions are with the written
authorization of the employees for payment to the
third person and the employer agrees to do so;
Provided, That the latter does not receive any
pecuniary benefit, directly or indirectly, from the
transaction.
Section 14. Deduction for loss or damage. Where the
employer is engaged in a trade, occupation or business where
the practice of making deductions or requiring deposits is
recognized to answer for the reimbursement of loss or
damage to tools, materials, or equipment supplied by the
employer to the employee, the employer may make wage
deductions or require the employees to make deposits from
which deductions shall be made, subject to the following
conditions:
(a) That the employee concerned is clearly shown to
be responsible for the loss or damage;
(b) That the employee is given reasonable
opportunity to show cause why deduction should not
be made;
(c) That the amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damage; and
(d) That the deduction from the wages of the
employee does not exceed 20 percent of the
employee's wages in a week.
19. Wage studies, agreements, determination
Article 120. Creation of the National Wages and Productivity
Commission. There is hereby created a National Wages and
Productivity Commission, hereinafter referred to as the
Commission, which shall be attached to the Department of
Labor and Employment (DOLE) for policy and program
coordination.
Article 121. Powers and Functions of the Commission. The
Commission shall have the following powers and functions:
a. To act as the national consultative and advisory body
to the President of the Philippines and Congress on
matters relating to wages, incomes and productivity;
b. To formulate policies and guidelines on wages,
incomes and productivity improvement at the
enterprise, industry and national levels;
c. To prescribe rules and guidelines for the
determination of appropriate minimum wage and
productivity measures at the regional, provincial or
industry levels;
d. To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to
determine if these are in accordance with prescribed
guidelines and national development plans;
e. To undertake studies, researches and surveys
necessary for the attainment of its functions and
objectives, and to collect and compile data and
periodically disseminate information on wages and
productivity and other related information, including,
but not limited to, employment, cost-of-living, labor
costs, investments and returns;
f. To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to
determine whether these are consistent with national
development plans;
g. To exercise technical and administrative supervision
over the Regional Tripartite Wages and Productivity
Boards; To call, from time to time, a national tripartite
conference of representatives of government,
workers and employers for the consideration of
measures to promote wage rationalization and
productivity; and
h. To exercise such powers and functions as may be
necessary to implement this Act.
The Commission shall be composed of the Secretary of Labor
and Employment as ex-officio chairman, the Director-General
of the National Economic and Development Authority (NEDA)
as ex-officio vice-chairman, and two (2) members each from
workers and employers sectors who shall be appointed by the
President of the Philippines upon recommendation of the
Secretary of Labor and Employment to be made on the basis
of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a
term of five (5) years. The Executive Director of the
Commission shall also be a member of the Commission.
The Commission shall be assisted by a Secretariat to be
headed by an Executive Director and two (2) Deputy
Directors, who shall be appointed by the President of the
Philippines, upon the recommendation of the Secretary of
Labor and Employment.
The Executive Director shall have the same rank, salary,
benefits and other emoluments as that of a Department
Assistant Secretary, while the Deputy Directors shall have the
same rank, salary, benefits and other emoluments as that of a
Bureau Director. The members of the Commission
representing labor and management shall have the same
rank, emoluments, allowances and other benefits as those
prescribed by law for labor and management representatives
in the Employees' Compensation Commission.
Article 122. Creation of Regional Tripartite Wages and
Productivity Boards. There is hereby created Regional
Tripartite Wages and Productivity Boards, hereinafter referred
to as Regional Boards, in all regions, including autonomous
regions as may be established by law. The Commission shall
determine the offices/headquarters of the respective Regional
Boards.
The Regional Boards shall have the following powers and
functions in their respective territorial jurisdiction:
a. To develop plans, programs and projects relative to
wages, incomes and productivity improvement for
their respective regions;
b. To determine and fix minimum wage rates applicable
in their region, provinces or industries therein and to
issue the corresponding wage orders, subject to
guidelines issued by the Commission;
c. To undertake studies, researches and surveys
necessary for the attainment of their functions,
objectives and programs, and to collect and compile
data on wages, incomes, productivity and other
related information and periodically disseminate the
same;
d. To coordinate with the other Regional Boards as may
be necessary to attain the policy and intention of this
Code;
e. To receive, process and act on applications for
exemption from prescribed wage rates as may be
provided by law or any Wage Order; and
f. To exercise such other powers and functions as may
be necessary to carry out their mandate under this
Code.
Implementation of the plans, programs and projects of the
Regional Boards referred to in the second paragraph, letter (a)
of this Article, shall be through the respective regional offices
of the Department of Labor and Employment within their
territorial jurisdiction; Provided, however, That the Regional
Boards shall have technical supervision over the regional
office of the Department of Labor and Employment with
respect to the implementation of said plans, programs and
projects.
Each Regional Board shall be composed of the Regional
Director of the Department of Labor and Employment as
chairman, the Regional Directors of the National Economic
and Development Authority and the Department of Trade and
Industry as vice-chairmen and two (2) members each from
workers and employers sectors who shall be appointed by the
President of the Philippines, upon the recommendation of the
Secretary of Labor and Employment, to be made on the basis
of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a
term of five (5) years.
Each Regional Board to be headed by its chairman shall be
assisted by a Secretariat.
Article 123. Wage Order. Whenever conditions in the
region so warrant, the Regional Board shall investigate and
study all pertinent facts; and based on the standards and
criteria herein prescribed, shall proceed to determine whether
a Wage Order should be issued. Any such Wage Order shall
take effect after fifteen (15) days from its complete
publication in at least one (1) newspaper of general circulation
in the region.
In the performance of its wage determining functions, the
Regional Board shall conduct public hearings/consultations,
giving notices to employees' and employers' groups,
provincial, city and municipal officials and other interested
parties.
Any party aggrieved by the Wage Order issued by the
Regional Board may appeal such order to the Commission
within ten (10) calendar days from the publication of such
order. It shall be mandatory for the Commission to decide
such appeal within sixty (60) calendar days from the filing
thereof.
The filing of the appeal does not stay the order unless the
person appealing such order shall file with the Commission an
undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by
the order of the corresponding increase, in the event such
order is affirmed.
Article 124. Standards/Criteria for Minimum Wage Fixing.
The regional minimum wages to be established by the
Regional Board shall be as nearly adequate as is economically
feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being of
the employees within the framework of the national economic
and social development program. In the determination of such
regional minimum wages, the Regional Board shall, among
other relevant factors, consider the following:
a. The demand for living wages;
b. Wage adjustment vis-a-vis the consumer price index;
c. The cost of living and changes or increases therein;
d. The needs of workers and their families;
e. The need to induce industries to invest in the
countryside;
f. Improvements in standards of living;
g. The prevailing wage levels;
h. Fair return of the capital invested and capacity to pay
of employers;
i. Effects on employment generation and family
income; and
j. The equitable distribution of income and wealth
along the imperatives of economic and social
development.
The wages prescribed in accordance with the provisions of this
Title shall be the standard prevailing minimum wages in every
region. These wages shall include wages varying within
industries, provinces or localities if in the judgment of the
Regional Board conditions make such local differentiation
proper and necessary to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other
entity engaged in business shall file and register annually with
the appropriate Regional Board, Commission and the National
Statistics Office an itemized listing of their labor component,
specifying the names of their workers and employees below
the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the
terms prescribed in the employment contracts, and their
corresponding salaries and wages.
Where the application of any prescribed wage increase by
virtue of law or Wage order issued by any Regional Board
results in distortions of the wage structure within an
establishment, the employer and the union shall negotiate to
correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure
under their collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless otherwise
agreed by the parties in writing, such dispute shall be decided
by the voluntary arbitrator or panel of voluntary arbitrators
within ten (10) calendar days from the time said dispute was
referred to voluntary arbitration.
In cases where there are no collective agreements or
recognized labor unions, the employers and workers shall
endeavor to correct such distortions. Any dispute arising
therefrom shall be settled through the National Conciliation
and Mediation Board and, if it remains unresolved after ten
(10) calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations
Commission (NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute within
twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall
not in any way delay the applicability of any increase in
prescribed wage rates pursuant to the provisions of law or
Wage Order.
As used herein, a wage distortion shall mean a situation
where an increase in prescribed wage rates results in the
elimination or severe contraction of intentional quantitative
differences in wage or salary rates between and among
employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of
differentiation.
All workers paid by result, including those who are paid on
piecework, takay, pakyaw or task basis, shall receive not less
than the prescribed wage rates per eight (8) hours work a
day, or a proportion thereof for working less than eight (8)
hours.
All recognized learnership and apprenticeship agreements
shall be considered automatically modified insofar as their
wage clauses are concerned to reflect the prescribed wage
rates.
Article 125. Power of the Commission. In conducting a
continuing study of wage rates and other economic conditions
in any industry or branches thereof, the Commission may call
upon the assistance and cooperation of any regional,
provincial and local government agency and may call
interested parties to furnish information in aid of its
deliberations.
Article 126. Prohibition Against Injunction. No preliminary
or permanent injunction or temporary restraining order may
be issued by any court, tribunal or other entity against any
proceedings before the Commission or the Regional Boards.
Article 127. Non-diminution of Benefits. No Wage Order
issued by any Regional Board shall provide for wage rates
lower than the statutory minimum wage rates prescribed by
Congress.
Chapter VI
Administration and Enforcement
Article 128. Visitorial and enforcement powers.
a. The Secretary of Labor or his duly authorized
representative, including labor regulation officers,
shall have access to employer's records and
premises at any time of the day or night whenever
work is being undertaken therein, and the right to
copy therefrom, to question any employee and to
investigate any fact, condition or matter which may
be necessary to determine violations or which may
aid in the enforcement of this Code and of any labor
law, wage order or rules and regulations issued
pursuant thereto.
b. Notwithstanding the provisions of Articles 129 and
217 of this Code to the contrary, and in cases where
the relationship of employer-employee still exists, the
Secretary of Labor and Employment or his duly
authorized representatives shall have the power to
issue compliance orders to give effect to the labor
standards provisions of this Code and other labor
legislation based on the findings of labor
employment and enforcement officers or industrial
safety engineers made in the course of inspection.
The Secretary or his duly authorized representatives
shall issue writs of execution to the appropriate
authority for the enforcement of their orders, except
in cases where the employer contests the findings of
the labor employment and enforcement officer and
raises issues supported by documentary proofs which
were not considered in the course of inspection.
An order issued by the duly authorized
representative of the Secretary of Labor and
Employment under this article may be appealed to
the latter. In case said order involves a monetary
award, an appeal by the employer may be perfected
only upon the posting of a cash or surety bond issued
by a reputable bonding company duly accredited by
the Secretary of Labor and Employment in the
amount equivalent to the monetary award in the
order appealed from.
c. The Secretary of Labor may likewise order stoppage
of work or suspension of operations of any unit or
department of an establishment when non-
compliance with the law or implementing rules and
regulations poses grave and imminent danger to the
health and safety of workers in the workplace. Within
twenty-four hours, a hearing shall be conducted to
determine whether an order for the stoppage of work
or suspension of operations shall be lifted or not. In
case the violation is attributable to the fault of the
employer, he shall pay the employees concerned
their salaries or wages during the period of such
stoppage of work or suspension of operation.
d. It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor or his
duly authorized representative issued pursuant to
the authority granted under this Article, and no
inferior court or entity shall issue temporary or
permanent injunction or restraining order or
otherwise assume jurisdiction over any case
involving the enforcement orders issued in
accordance with this Article.
e. Any government employee found guilty of violation
of, or abuse of authority, under this Article shall after
appropriate administrative investigation, be subject
to summary dismissal from the service.
f. The Secretary of Labor may by appropriate
regulations require employers to keep and maintain
such employment records as may be necessary in aid
 of his visitorial and enforcement powers under this involving the legality of strikes
Code. and lockouts; and

Article 129. Recovery of wages, simple money claims and f. Except claims for Employees
other benefits. Upon complaint of any interested party, the Compensation, Social Security,
Regional Director of the Department of Labor and Medicare and maternity
Employment or any of the duly authorized hearing officers of benefits, all other claims
the Department is empowered, through summary proceeding arising from employer-
and after due notice, to hear and decide any matter involving employee relations, including
the recovery of wages and other monetary claims and those of persons in domestic
benefits, including legal interest, owing to an employee or or household service, involving
person employed in domestic or household service or an amount exceeding five
househelper under this Code, arising from employer-employee thousand pesos (P5,000.00)
relations: Provided, That such complaint does not include a regardless of whether
claim for reinstatement: Provided, further, That the aggregate accompanied with a claim for
money claims of each employee or househelper do not reinstatement.
exceed Five thousand pesos (P5,000.00). The Regional
Director or hearing officer shall decide or resolve the The Commission shall have exclusive appellate
complaint within thirty (30) calendar days from the date of the jurisdiction over all cases decided by Labor Arbiters.
filing of the same. Any sum thus recovered on behalf of any
employee or househelper pursuant to this Article shall be held Cases arising from the interpretation or implementation
in a special deposit account, and shall be paid, on order of the of collective bargaining agreements and those arising
Secretary of Labor and Employment or the Regional Director from the interpretation or enforcement of company
directly to the employee or househelper concerned. Any such personnel policies shall be disposed of by the Labor
sum not paid to the employee or househelper, because he Arbiter by referring the same to the grievance machinery
cannot be located after diligent and reasonable effort to and voluntary arbitration as may be provided in said
locate him within a period of three (3) years, shall be held as a agreements. (As amended by Section 9, Republic Act No.
special fund of the Department of Labor and Employment to 6715, March 21, 1989)
be used exclusively for the amelioration and benefit of
workers.

Any decision or resolution of the Regional Director or hearing

officer pursuant to this provision may be appealed on the
same grounds provided in Article 223 of this Code, within five
(5) calendar days from receipt of a copy of said decision or
resolution, to the National Labor Relations Commission which
shall resolve the appeal within ten (10) calendar days from
the submission of the last pleading required or allowed under
its rules.

The Secretary of Labor and Employment or his duly authorized

representative may supervise the payment of unpaid wages
and other monetary claims and benefits, including legal
interest, found owing to any employee or househelper under
this Code.

Note: Article 217 has been amended by RA 10151 in

2011, which is now about Adult Education.
Article 217. Jurisdiction of the Labor Arbiters and the
Commission.
Except as otherwise provided under this Code, the Labor
Arbiters shall have original and exclusive jurisdiction to
hear and decide, within thirty (30) calendar days after the
submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the
following cases involving all workers, whether agricultural
or non-agricultural:

a. Unfair labor practice cases;

b. Termination disputes;

c. If accompanied with a claim for

reinstatement, those cases
that workers may file involving
wages, rates of pay, hours of
work and other terms and
conditions of employment;

d. Claims for actual, moral,

exemplary and other forms of
damages arising from the
employer-employee relations;

e. Cases arising from any

violation of Article 264 of this
Code, including questions
SKIM
RA 6727 Wage Rationalization Act.
Section 2. It is hereby declared the policy of the State to
rationalize the fixing of minimum wages and to promote
productivity-improvement and gain-sharing measures to
ensure a decent standard of living for the workers and their
families; to guarantee the rights of labor to its just share in
the fruits of production; to enhance employment generation in
the countryside through industry dispersal; and to allow
business and industry reasonable returns on investment,
expansion and growth.
The State shall promote collective bargaining as the primary
mode of settling wages and other terms and conditions of
employment; and whenever necessary, the minimum wage
rates shall be adjusted in a fair and equitable manner,
considering existing regional disparities in the cost of living
and other socio-economic factors and the national economic
and social development plans.
Section 3. In line with the declared policy under this Act,
Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126
and 127 are hereby incorporated into Presidential Decree No.
442, as amended, to read as follows:
"Art. 99. Regional Minimum Wages. The minimum
wage rates for agricultural and non-agricultural
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards."
"Art. 120. Creation of the National Wages and
Productivity Commission. There is hereby created
a National Wages and Productivity Commission,
hereinafter referred to as the Commission, which
shall be attached to the Department of Labor and
Employment (DOLE) for policy and program
coordination."
"Art. 121. Powers and Functions of the Commission.
The Commission shall have the following powers
and functions:
"(a) To act as the national consultative and
advisory body to the President of the
Philippines and Congress on matters relating
to wages, incomes and productivity;
"(b) To formulate policies and guidelines on
wages, incomes and productivity
improvement at the enterprise, industry and
national levels;
"(c) To prescribe rules and guidelines for the
determination of appropriate minimum
wage and productivity measures at the
regional, provincial or industry levels;
"(d) To review regional wage levels set by
the Regional Tripartite Wages and
Productivity Boards to determine if these are
in accordance with prescribed guidelines
and national development plans;
"(e) To undertake studies, researches and
surveys necessary for the attainment of its
functions and objectives, and to collect and
compile data and periodically disseminate
information on wages and productivity and
other related information, including, but not
limited to, employment, cost-of-living, labor
costs, investments and returns;
"(f) To review plans and programs of the
Regional Tripartite Wages and Productivity
Boards to determine whether these are
consistent with national development plans;
"(g) To exercise technical and administrative
supervision over the Regional Tripartite
Wages and Productivity Boards;
"(h) To call, from time to time, a national
tripartite conference of representatives of
government, workers and employers for the
consideration of measures to promote wage
rationalization and productivity; and
"(i) To exercise such powers and functions as
may be necessary to implement this Act.
"The Commission shall be composed of the Secretary
of Labor and Employment as ex-officio chairman, the
Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice-
chairman, and two (2) members each from workers
and employers sectors who shall be appointed by the
President of the Philippines upon recommendation of
the Secretary of Labor and Employment to be made
on the basis of the list of nominees submitted by the
workers and employers sectors, respectively, and
who shall serve for a term of five (5) years. The
Executive Director of the Commission shall also be a
member of the Commission.
"The Commission shall be assisted by a Secretariat to
be headed by an Executive Director and two (2)
Deputy Directors, who shall be appointed by the
President of the Philippines, upon the
recommendation of the Secretary of Labor and
Employment.
"The Executive Director shall have the same rank,
salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy
Directors shall have the same rank, salary, benefits
and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
and management shall have the same rank,
emoluments, allowances and other benefits as those
prescribed by law for labor and management
representatives in the Employees' Compensation
Commission.
"Art. 122. Creation of Regional Tripartite Wages and
Productivity Boards. There is hereby created
Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all
regions, including autonomous regions as may be
established by law. The Commission shall determine
the offices/headquarters of the respective Regional
Boards.
"The Regional Boards shall have the following powers "In the performance of its wage determining
and functions in their respective territorial functions, the Regional Board shall conduct public
jurisdiction: hearings/consultations, giving notices to employees'
and employers' groups, provincial, city and municipal
officials and other interested parties.
"(a) To develop plans, programs and projects
relative to wages, incomes and productivity
improvement for their respective regions; "Any party aggrieved by the Wage Order issued by
the Regional Board may appeal such order to the
Commission within ten (10) calendar days from the
"(b) To determine and fix minimum wage
publication of such order. It shall be mandatory for
rates applicable in their region, provinces or
the Commission to decide such appeal within sixty
industries therein and to issue the
(60) calendar days from the filing thereof.
corresponding wage orders, subject to
guidelines issued by the Commission;
"The filing of the appeal does not stay the order
unless the person appealing such order shall file with
"(c) To undertake studies, researches and
the Commission an undertaking with a surety or
surveys necessary for the attainment of
sureties satisfactory to the Commission for the
their functions, objectives and programs,
payment to the employees affected by the order of
and to collect and compile data on wages,
the corresponding increase, in the event such order
incomes, productivity and other related
is affirmed."
information and periodically disseminate the
same;
"Art. 124. Standards/Criteria for Minimum Wage
Fixing. The regional minimum wages to be
"(d) To coordinate with the other Regional
established by the Regional Board shall be as nearly
Boards as may be necessary to attain the
adequate as is economically feasible to maintain the
policy and intention of this Code;
minimum standards of living necessary for the
health, efficiency and general well-being of the
"(e) To receive, process and act on employees within the framework of the national
applications for exemption from prescribed economic and social development program. In the
wage rates as may be provided by law or determination of such regional minimum wages, the
any Wage Order; and Regional Board shall, among other relevant factors,
consider the following:
"(f) To exercise such other powers and
functions as may be necessary to carry out "(a) The demand for living wages;
their mandate under this Code.
"(b) Wage adjustment vis-a-vis the
Implementation of the plans, programs and projects consumer price index;
of the Regional Boards referred to in the second
paragraph, letter (a) of this Article, shall be through
"(c) The cost of living and changes or
the respective regional offices of the Department of
increases therein;
Labor and Employment within their territorial
jurisdiction; Provided, however, That the Regional
Boards shall have technical supervision over the "(d) The needs of workers and their families;
regional office of the Department of Labor and
Employment with respect to the implementation of
"(e) The need to induce industries to invest
said plans, programs and projects.
in the countryside;

"Each Regional Board shall be composed of the

"(f) Improvements in standards of living;
Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of
the National Economic and Development Authority "(g) The prevailing wage levels;
and the Department of Trade and Industry as vice-
chairmen and two (2) members each from workers
"(h) Fair return of the capital invested and
and employers sectors who shall be appointed by the
capacity to pay of employers;
President of the Philippines, upon the
recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of "(i) Effects on employment generation and
nominees submitted by the workers and employers family income; and
sectors, respectively, and who shall serve for a term
of five (5) years.
"(j) The equitable distribution of income and
wealth along the imperatives of economic
"Each Regional Board to be headed by its chairman and social development.
shall be assisted by a Secretariat.
"The wages prescribed in accordance with the
"Art. 123. Wage Order. Whenever conditions in the provisions of this Title shall be the standard
region so warrant, the Regional Board shall prevailing minimum wages in every region. These
investigate and study all pertinent facts; and based wages shall include wages varying within industries,
on the standards and criteria herein prescribed, shall provinces or localities if in the judgment of the
proceed to determine whether a Wage Order should Regional Board conditions make such local
be issued. Any such Wage Order shall take effect differentiation proper and necessary to effectuate the
after fifteen (15) days from its complete publication purpose of this Title.
in at least one (1) newspaper of general circulation in
the region.
"Any person, company, corporation, partnership or
any other entity engaged in business shall file and
register annually with the appropriate Regional
Board, Commission and the National Statistics Office
an itemized listing of their labor component,
specifying the names of their workers and employees
below the managerial level, including learners,
apprentices and disabled/handicapped workers who
were hired under the terms prescribed in the
employment contracts, and their corresponding
salaries and wages.
"Where the application of any prescribed wage
increase by virtue of law or Wage order issued by any
Regional Board results in distortions of the wage
structure within an establishment, the employer and
the union shall negotiate to correct the distortions.
Any dispute arising from wage distortions shall be
resolved through the grievance procedure under
their collective bargaining agreement and, if it
remains unresolved, through voluntary arbitration.
Unless otherwise agreed by the parties in writing,
such dispute shall be decided by the voluntary
arbitrator or panel of voluntary arbitrators within ten
(10) calendar days from the time said dispute was
referred to voluntary arbitration.
"In cases where there are no collective agreements
or recognized labor unions, the employers and
workers shall endeavor to correct such distortions.
Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation
Board and, if it remains unresolved after ten (10)
calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations
Commission (NLRC). It shall be mandatory for the
NLRC to conduct continuous hearings and decide the
dispute within twenty (20) calendar days from the
time said dispute is submitted for compulsory
arbitration.
"The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to
the provisions of law or Wage Order.
"As used herein, a wage distortion shall mean a
situation where an increase in prescribed wage rates
results in the elimination or severe contraction of
intentional quantitative differences in wage or salary
rates between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation.
"All workers paid by result, including those who are
paid on piecework, takay, pakyaw or task basis, shall
receive not less than the prescribed wage rates per
eight (8) hours work a day, or a proportion thereof for
working less than eight (8) hours.
"All recognized learnership and apprenticeship
agreements shall be considered automatically
modified insofar as their wage clauses are concerned
to reflect the prescribed wage rates."
"Art. 126. Prohibition Against Injunction. No
preliminary or permanent injunction or temporary
restraining order may be issued by any court,
tribunal or other entity against any proceedings
before the Commission or the Regional Boards."
"Art. 127. Non-diminution of Benefits. No Wage
Order issued by any Regional Board shall provide for
wage rates lower than the statutory minimum wage
rates prescribed by Congress."
Section 4. (a) Upon the effectivity of this Act, the statutory
minimum wage rates of all workers and employees in the
private sector, whether agricultural or non-agricultural, shall
be increased by twenty-five pesos (P25.00) per day, except
that workers and employees in plantation agricultural
enterprises outside of the National Capital Region (NCR) with
an annual gross sales of less than five million pesos
(P5,000,000.00) in the preceding year shall be paid an
increase of twenty pesos (P20.00), and except further that
workers and employees of cottage/handicraft industries, non-
plantation agricultural enterprises, retail/service
establishments regularly employing not more than ten (10)
workers, and business enterprises with a capitalization of not
more than five hundred thousand pesos (P500,000.00) and
employing not more than twenty (20) employees, which are
located or operating outside the NCR, shall be paid only an
increase of fifteen pesos (P15.00): Provided, That those
already receiving above the minimum wage rates up to one
hundred pesos (P100.00) shall also receive an increase of
twenty-five pesos (P25.00) per day, except that the workers
and employees mentioned in the first exception clause of this
Section shall also be paid only an increase of twenty pesos
(P20.00), and except further that those employees
enumerated in the second exception clause of this Section
shall also be paid an increase of fifteen pesos (P15.00):
Provided, further, That the appropriate Regional Board is
hereby authorized to grant additional increases to the workers
and employees mentioned in the exception clauses of this
Section if, on the basis of its determination pursuant to Article
124 of the Labor Code such increases are necessary.
(b) The increase of twenty-five pesos (P25.00) prescribed
under this Section shall apply to all workers and employees
entitled to the same in private educational institutions as soon
as they have increased or are granted authority to increase
their tuition fees during school year 1989-1990. Otherwise,
such increase shall be so applicable not later than the opening
of the next school year beginning 1990.
(c) Exempted from the provisions of this Act are household or
domestic helpers and persons employed in the personal
service of another, including family drivers.
Retail/service establishments regularly employing not more
than ten (10) workers may be exempted from the applicability
of this Act upon application with and as determined by the
appropriate Regional Board in accordance with the applicable
rules and regulations issued by the Commission. Whenever an
application for exemption has been duly filed with the
appropriate Regional Board, action on any complaint for
alleged non-compliance with this Act shall be deferred
pending resolution of the application for exemption by the
appropriate Regional Board.
In the event that applications for exemptions are not granted,
employees shall receive the appropriate compensation due
them as provided for by this Act plus interest of one per cent
(1%) per month retroactive to the effectivity of this Act.
(d) If expressly provided for and agreed upon in the collective
bargaining agreements, all increases in the daily basic wage
rates granted by the employers three (3) months before the
effectivity of this Act shall be credited as compliance with the
increases in the wage rates prescribed herein, provided that,
where such increases are less than the prescribed increases in
the wage rates under this Act, the employer shall pay the
difference. Such increases shall not include anniversary wage
increases, merit wage increases and those resulting from the
regularization or promotion of employees.
Where the application of the increases in the wage rates
under this Section results in distortions as defined under
existing laws in the wage structure within an establishment
and gives rise to a dispute therein, such dispute shall first be
settled voluntarily between the parties and in the event of a
deadlock, the same shall be finally resolved through
compulsory arbitration by the regional branches of the
National Labor Relations Commission (NLRC) having
jurisdiction over the workplace.
It shall be mandatory for the NLRC to conduct continuous
hearings and decide any dispute arising under this Section
within twenty (20) calendar days from the time said dispute is
formally submitted to it for arbitration. The pendency of a
dispute arising from a wage distortion shall not in any way
delay the applicability of the increase in the wage rates
prescribed under this Section.
Section 5. Within a period of four (4) years from the
effectivity of this Act and without prejudice to collective
bargaining negotiations or agreements or other employment
contracts between employers and workers, new business
enterprises that may be established outside the NCR and
export processing zones whose operation or investments need
initial assistance as may be determined by the Department of
Labor and Employment in consultation with the Department of
Trade and Industry or the Department of Agriculture, as the
case may be, shall be exempt from the applicability of this Act
for not more than three (3) years from the start of their
operations: Provided, That such new business enterprises
established in Region III (Central Luzon) and Region IV
(Southern Tagalog) shall be exempt from such increases only
for two (2) years from the start of their operations, except
those established in the Provinces of Palawan, Oriental
Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon
and Aurora, which shall enjoy such exemption for not more
than three (3) years from the start of their operations.
Section 6. In the case of contracts for construction projects
and for security, janitorial and similar services, the prescribed
increases in the wage rates of the workers shall be borne by
the principals or clients of the construction/service contractors
and the contract shall be deemed amended accordingly. In the
event, however, that the principal or client fails to pay the
prescribed wage rates, the construction/service contractor
shall be jointly and severally liable with his principal or client.
Section 7. Upon written permission of the majority of the
employees or workers concerned, all private establishments,
companies, businesses, and other entities with twenty five
(25) or more employees and located within one (1) kilometer
radius to a commercial, savings or rural bank shall pay the
wages and other benefits of their employees through any of
said banks and within the period of payment of wages fixed
by Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines.
Section 8. Whenever applicable and upon request of a
concerned worker or union, the bank shall issue a certification
of the record of payment of wages of a particular worker or
workers for a particular payroll period.
Section 9. The Department of Labor and Employment shall
conduct inspections as often as possible within its manpower
constraint of the payroll and other financial records kept by
the company or business to determine whether the workers
are paid the prescribed minimum wage rates and other
benefits granted by law or any Wage Order. In unionized
companies, the Department of Labor and Employment
inspectors shall always be accompanied by the president or
any responsible officer of the recognized bargaining unit or of
any interested union in the conduct of the inspection. In non-
unionized companies, establishments or businesses, the
inspection should be carried out in the presence of a worker
representing the workers in the said company. The workers'
representative shall have the right to submit his own findings
to the Department of Labor and Employment and to testify on
the same if he cannot concur with the findings of the labor
inspector.
Section 10. The funds necessary to carry out the provisions
of this Act shall be taken from the Compensation and
Organizational Adjustment Fund, the Contingent Fund, and
other savings under the Republic Act No. 6688, otherwise
known as the General Appropriations Act of 1989, or from any
unappropriated funds of the National Treasury: Provided, That
the funding requirements necessary to implement this Act
shall be included in the annual General Appropriations Act for
the succeeding years.
Section 11. The National Wages Council created under
Executive Order No. 614 and the National Productivity
Commission created under Executive Order No. 615 are
hereby abolished. All properties, records, equipment,
buildings, facilities, and other assets, liabilities and
appropriations of and belonging to the abovementioned
offices, as well as other matters pending therein, shall be
transferred to the Commission. All personnel of the above
abolished offices shall continue to function in a holdover
capacity and shall be preferentially considered for
appointments to or placement in the Commission.
Any official or employee separated from the service as a
result of the abolition of office pursuant to this Act shall be
entitled to appropriate separation pay and retirement and
other benefits accruing to them under existing laws. In lieu,
thereof, at the option of the employee, he shall be
preferentially considered for employment in the government
or in any of its subdivisions, instrumentalities, or agencies,
including government-owned or controlled corporations and
their subsidiaries.
Section 12. Any person, corporation, trust, firm, partnership,
association or entity which refuses or fails to pay any of the
prescribed increases or adjustments in the wage rates made
in accordance with this Act shall be punished by a fine not
exceeding twenty five thousand pesos (P25,000.00) and/or
imprisonment of not less than one (1) year nor more than two
(2) years: Provided, That any person convicted under this Act
shall not be entitled to the benefits provided for under the
Probations Law.
If the violation is committed by a corporation, trust or firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed on the entity's responsible
officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager, managing
director or partner.
Section 13. The Secretary of Labor and Employment shall
promulgate the necessary rules and regulations to implement
the provisions of this Act.
Section 14. Al laws, orders, issuances, rules and regulations
or parts thereof inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly. If any
provision or part of this Act, or the application thereof to any
person or circumstance, is held invalid or unconstitutional, the
remainder of this Act or the application of such provision or
part thereof to other persons or circumstances shall not be
affected thereby.
Nothing in this Act shall be construed to reduce any existing
wage rates, allowances and benefits of any form under
existing laws, decrees, issuances, executive orders, and/or
under any contract or agreement between the workers and
the employers.
Section 15. This Act take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two
(2) national newspapers of general circulation, whichever
comes earlier.
Approved: June 9, 1989
RULES IMPLEMENTING REPUBLIC ACT NO. 6727
Pursuant to the authority granted to the Secretary of Labor
and Employment under Section 13 of Republic Act No. 6727,
otherwise known as the Wage Rationalization Act, the
following rules are hereby issued for guidance and compliance
by all concerned:
Definition of Terms. As used in this Rules
a) "Act" means Republic Act No. 6727;
b) "Commission" means the National Wages and
Productivity Commission;
c) "Board" means the Regional Tripartite Wages and
Productivity Board;
d) "Agriculture" refers to farming in all its branches
and among others, includes the cultivation and
tillage of the soil, production, cultivation, growing
and harvesting of any agricultural or horticultural
commodities, dairying, raising of livestock or poultry,
the culture of fish and other aquatic products in
farms or ponds, and any activities performed by a
farmer or on a farm as an incident to or in
conjunction with such farming operations, but does
not include the manufacturing and/or processing of
sugar, coconut, abaca, tobacco, pineapple, aquatic or
other farm products;
e) "Plantation Agricultural Enterprise" is one engaged
in agriculture with an area of more than 24 hectares
in a locality or which employs at least 20 workers.
Any other agricultural enterprise shall be considered
as "Non-Plantation Agricultural Enterprise";
f) "Retail Establishment" is one principally engaged in
the sale of goods to end-users for personal or
household use;
g) "Service Establishment" is one principally engaged
in the sale of service to individuals for their own or
household use and is generally recognized as such;
h) "Cottage/Handicraft Establishment" is one
engaged in an economic endeavor in which the
products are primarily done in the home or such
other places for profit which requires manual
dexterity and craftmanship and whose capitalization
does not exceed P500,000, regardless of previous
registration with the defunct NACIDA;
i) "National Capital Region" covers the cities of
Kalookan, Manila, Pasay and Quezon and the
municipalities of Las Pias, Makati, Malabon,
Mandaluyong, Marikina, Muntinlupa, Navotas,
Paraaque, Pasig, Pateros, San Juan, Taguig and
Valenzuela;
j) "Region III" covers the provinces of Bataan,
Bulacan, Nueva Ecija, Pampanga, Tarlac, and
Zambales and the cities of Angeles, Cabanatuan,
Olongapo, Palayan and San Jose;
k) "Region IV" covers the provinces of Aurora,
Batangas, Cavite, Laguna, Marinduque, Occidental
Mindoro, Oriental Mindoro, Palawan, Quezon, Rizal
and Romblon and the cities of Batangas, Cavite, Lipa,
Lucena, Puerto Princesa, San Pablo, Tagaytay and
Trece Martires;
l) "Department" refers to the Department of Labor
and Employment;
m) "Secretary" means the Secretary of Labor and
Employment;
n) "Basic Wage" means all remuneration or earnings
paid by an employer to a worker for services
rendered on normal working days and hours but does
not include cost-of-living allowances, profit sharing
payments, premium payments, 13th month pay or
other monetary benefits which are not considered as
part of or integrated into the regular salary of the
workers on the date the Act became effective;
o) "Statutory Minimum Wage" is the lowest wage rate
fixed by law that an employer can pay his workers;
p) "Wage Distortion" means a situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
quantitative differences in wage or salary rates
between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation;
q) "Capitalization" means paid-up capital, in the case
of a corporation, and total invested capital, in the
case of a partnership or single proprietorship.
CHAPTER I
Wage Increase
SECTION 1. Coverage. The wage increase prescribed
under the Act shall apply to all workers and employees in the
private sector regardless of their position, designation or
status, and irrespective of the method by which their wages
are paid, except;
a) Household or domestic helpers, including family
drivers and workers in the personal service of
another;
b) Workers and employees in retail/service
establishments regularly employing not more than 10
workers, when exempted from compliance with the
Act, for a period fixed by the Commission/Boards in
accordance with Section 4 (c) of the Act and Section
15, Chapter 1 of this Rules;
c) Workers and employees in new business
enterprises outside the National Capital Region and
export processing zones for a period of not more
than two or three years, as the case may be, from
the start of operations when exempted in accordance
with Section 5 of the Act and Section 15, Chapter 1 of
this Rules;
 d) Workers and employees receiving a basic wage of
more than P100.00 per day.
Section 2. Effectivity. The Act takes effect on July 1,
1989, 15 days following its complete publication in two
newspapers of general circulation on June 15, 1989 pursuant
to Section 15 thereof.
Section 3. Amount of Minimum Wage Increase.
Effective July 1, 1989, the daily statutory minimum wage rates
of covered workers and employees shall be increased as
follows:
(iv) P2,183.33 where the workers and
employees do not work and are not
considered paid on Saturdays and Sundays
or rest days.
c) Workers and employees who, prior to July 1, 1989,
were receiving a basic wage of more than P100.00
per day or its monthly equivalent, are not by law
entitled to the wage increase provided under the Act.
They may, however, receive wage increases through
the correction of wage distortions in accordance with
Section 16, Chapter 1 of this Rules.

Section 5. Daily Statutory Minimum Wage Rates. The

a) P25.00 for those in the National Capital Region;
daily statutory minimum wage rates of workers and
employees shall be as follows:
b) P25.00 for those outside the National Capital
Region, except for the following:
Under RA 6640 Under RA 6727

P20.00 for those in plantation agricultural

Sector/Industry (Effective (Effective
enterprises with an annual gross sales of
less than P5 million in the fiscal year
immediately preceding the effectivity of the Dec. 14, 1987) July 1, 1989 )
Act;
A. NATIONAL CAPITAL REGION
P15.00 for those in the following
enterprises:
Non-Agriculture P64.00 P89.00

1. Non-plantation agriculture
Agriculture

2. Cottage/handicraft
Plantation 54.00 79.00

3. Retail/Service regularly
Non-Plantation 43.50 68.50
employing not more than 10
workers.
Cottage/Handicraft
4. Business enterprises with a
capitalization of not more than Employing more than 30 workers 52.00 77.00
P500,000 and employing not more
than 20 workers.
Employing not more than 30 workers 50.00 75.00

Section 4. When Wage Increase Due Other Workers.

Private hospitals

a) All workers and employees who, prior to July 1,

With bed capacity of more than 100 64.00 89.00
1989, were already receiving a basic wage above the
statutory minimum wage rates provided under
Republic Act 6640 but not over P100.00 per day shall With bed capacity or 100 or less 60.00 85.00
receive a wage increase equivalent to that provided
in the preceding Section.
Retail/Service

b) Those receiving not more than the following

Employing more than 15 workers 64.00 89.00
monthly wage rates prior to July 1, 1989 shall be
deemed covered by the preceding subsection:
Employing 11 to 15 workers 60.00 85.00
(i) P3,257.50 where the workers and
employees work everyday, including Employing not more than 10 workers 43.00 68.00
premium payments for Sundays or rest
days, special days and regular holidays.
B. OUTSIDE NATIONAL CAPITAL REGION

(ii) P3,041.67 where the workers and

Non-agriculture 64.00 89.00
employees do not work but considered paid
on rest days, special days and regular
holidays. Agriculture

(iii) P2,616.67 where the workers and Plantation with annual

employees do not work and are not
considered paid on Sundays or rest days.
gross sales of P5M or more 54.00 79.00

Plantation with annual gross

sales less than P5M 54.00 74.00
Non-Plantation 43.50 58.50
Cottage/Handicraft
Employing more than 30 workers 52.00 67.00
Employing not more than 30 workers 50.00 65.00
Private Hospitals 60.00 85.00
Retail/Service
Cities w/ population of more than 150,000
Employing more than 15 workers 64.00 89.00
Employing 11 to 15 workers 60.00 85.00
Employing not more than 10 workers 43.00 58.00
Municipalities and Cities with
population not more than 150,000
Employing more than 10 workers 60.00 85.00
Employing not more than 10 workers 43.00 58.00
Sugar Mills 66.00 91.00
Agriculture
Plantation with annual gross
sales of P5M or more 48.50 73.50
Plantation with annual gross
sales of less than P5M 48.50 68.50
Non-plantation 43.50 58.50
Business Enterprises with Capitalization
of not more than P500,000 and employing
not more than 20 workers
Non-Agriculture 64.00 79.00
Agriculture Plantation
Products Other than Sugar 54.00 69.00
Sugar 48.50 63.50
Private Hospitals 60.00 75.00
Retail/Service
Cities w/ population of more than P150,000
Employing more than 15 workers 64.00 79.00
Employing 11 to 15 workers 60.00 75.00
Municipalities and Cities w/ population
of not more than 150,000
Employing more than 10 workers 60.00 75.00
Section 6. Suggested Formula in Determining the
Equivalent Monthly Statutory Minimum Wage Rates.
Without prejudice to existing company practices, agreements
or policies, the following formula may be used as guides in
determining the equivalent monthly statutory minimum wage
rates:
a) For those who are required to work everyday
including Sundays or rest days, special days and
regular holidays:
Equivalent Applicable daily wage rate
Monthly = (ADR) x 390.90 days
Rate (EMR) 12
Where 390.90 days =
302 days Ordinary working days
20 days 10 regular holidays x 200%
66.30 days 51 rest days x 130%
2.60 days 2 special days x 130%
390.90 days Total equivalent number of
days.
Note: For workers whose rest days fall on Sundays, the
number of rest days in a year is reduced from 52 to 51 days,
the last Sunday of August being a regular holiday under
Executive Order No. 203. For purposes of computation, said
holiday, although still a rest day for them, is included in the
ten regular holidays. For workers whose rest days do not fall
on Sundays, the number of rest days is 52 days, as there are
52 weeks in a year.
Nothing herein shall be construed as authorizing the reduction
of benefits granted under existing agreements or employer
practices/policies.
Section 7. Basis of Minimum Wage Rates. The
statutory minimum wage rates prescribed under the Act shall
be for the normal working hours, which shall not exceed eight
hours of work a day.
Section 8. Credible Wage Increase.
a) No wage increase shall be credited as compliance
with the increases prescribed under the Act unless
 expressly provided under collective bargaining
agreements, and, such wage increase was granted
not earlier than April 1, 1989 but not later than July
1, 1989. Where the wage increase granted is less
than the prescribed increase under the Act, the
employer shall pay the difference.
b) Anniversary wage increase provided in collective
agreements, merit wage increase, and those
resulting from the regularization or promotion of
employees shall not be credited as compliance
thereto.
Section 9. Workers Paid by Results.
a) All workers paid by results, including those who
are paid on piecework, takay, pakyaw, or task basis,
shall receive not less than the applicable statutory
minimum wage rates prescribed under the Act for the
normal working hours which shall not exceed eight
hours work a day, or a proportion thereof for work of
less than the normal working hours.
The adjusted minimum wage rates for workers paid
by results shall be computed in accordance with the
following steps:
1) Amount of increase in AMW* Previous
AMW x 100 = % increase;
2) Existing rate/piece x % increase =
increase in rate/piece;
3) Existing rate/piece + increase in
rate/piece = Adjusted rate/piece.
*Where AMW is the applicable
minimum wage rate.
b) The wage rates of workers who are paid by results
shall continue to be established in accordance with
Article 101 of the Labor Code, as amended and its
implementing regulations.
Section 10. Wages of Special Groups of Workers.
Wages of apprentices, learners and handicapped workers shall
in no case be less than 75 percent of the applicable statutory
minimum wage rates.
All recognized learnership and apprenticeship agreements
entered into before July 1, 1989 shall be considered as
automatically modified insofar as their wage clauses are
concerned to reflect the increases prescribed under the Act.
Section 11. Application to Contractors. In the case of
contracts for construction projects and for security, janitorial
and similar services, the prescribed wage increases shall be
borne by the principals or clients of the construction/service
contractors and the contract shall be deemed amended
accordingly. In the event, however, that the principal or client
fails to pay the prescribed wage rates, the
construction/service contractor shall be jointly and severally
liable with his principal or client.
Section 12. Application to Private Educational
Institutions. Private educational institutions which
increased tuition fees beginning school year 1989-1990 shall
comply with the P250.00 per day wage increase prescribed
under the Act effective as follows:
a) In cases where the tuition fee increase was
effected before the effectivity of the Act, the wage
increase shall take effect on July 1, 1989.
b) In cases where the tuition fee increase was
effected on or after the effectivity of the Act, the
wage increase shall take effect not later than the
date the school actually increased tuition fees but in
the latter case, such wage increase may not be made
retroactive to July 1, 1989.
Beginning school year 1990-1991, all schools shall implement
the wage increase regardless of whether or not they have
actually increased tuition fees.
Section 13. Mobile and Branch Workers. The statutory
minimum wage rates of workers, who by the nature of their
work have to travel, shall be those applicable in the domicile
or head office of the employer.
The minimum wage rates of workers working in branches or
agencies of establishments in or outside the National Capital
Region shall be those applicable in the place where they are
stationed.
Section 14. Transfer of Personnel. The transfer of
personnel to areas outside the National Capital Region shall
not be a valid ground for the reduction workers transferred to
the National Capital Region shall be entitled to the minimum
wage rate applicable therein.
Section 15. Exemptions.
a) The following establishments may be exempted
from compliance with the wage increase prescribed
under the Act:
1) Retail/Service establishments regularly
employing not more than 10 workers upon
application with and as determined by the
appropriate Board in accordance with
applicable guidelines to be issued by the
Commission.
2) New business enterprises that may be
established outside the National Capital
Region and export processing zones from
July 1, 1989 to June 30, 1993, whose
operation or investments need initial
assistance may be exempted for not more
than three years from the start of
operations, subject to guidelines to be
issued by the Secretary in consultation with
the Department of Trade and Industry and
the Department of Agriculture.
New business enterprises in Region III (Central Luzon)
and Region IV (Southern Tagalog) may be exempted
for two years only from start of operations, except
those that may be established in the provinces of
Palawan, Oriental Mindoro, Occidental Mindoro,
Marinduque, Romblon, Quezon and Aurora, which
may also be exempted for not more than three years
from the start of operations.
b) Whenever an application for exemption has been
duly filed with the appropriate office in the
Department/Board, action by the Regional Office of
the Department on any complaint for alleged non-
compliance with the Act shall be deferred pending
resolution of the application for exemption.
 c) In the event that the application for exemption is SECTION 1. Commission. The National Wages and
not granted, the workers and employees shall receive Productivity Commission created under the Act shall hold
the appropriate compensation due them as provided office in the National Capital Region. The Commission shall be
for under the Act plus interest of one percent per attached to the Department for policy and program
month retroactive to July 1, 1989 or the start of coordination.
operations whichever is applicable.
Section 2. Powers and Functions of the Commission.
Section 16. Effects on Existing Wage Structure. The Commission shall have the following powers and
Where the application of the wage increase prescribed herein functions:
results in distortions in the wage structure within an
establishment which gives rise to a dispute therein, such
a) To act as the national consultative and advisory
dispute shall first be settled voluntarily between the parties.
body to the President of the Philippines and Congress
In the event of a deadlock, such dispute shall be finally
on matters relating to wages, incomes and
resolved through compulsory arbitration by the regional
productivity;
arbitration branch of the National Labor Relations Commission
(NLRC) having jurisdiction over the workplace.
b) To formulate policies and guidelines on wages,
incomes and productivity improvement at the
The NLRC shall conduct continuous hearings and decide any
enterprise, industry and national levels;
dispute arising from wage distortions within twenty calendar
days from the time said dispute is formally submitted to it for
arbitration. c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and
productivity measures at the regional, provincial or
The pendency of a dispute arising from a wage distortion shall
industry levels;
not in any way delay the applicability of the increases in the
wage rates prescribed under the Act.
d) To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to
Any issue involving wage distortion shall not be a ground for a
determine if these are in accordance with prescribed
strike/lockout.
guidelines and national development plans;

Section 17. Complaints for Non-Compliance.

e) To undertake studies, researches and surveys
Complaints for non-compliance with the wage increases
necessary for the attainment of its functions and
prescribed under the Act shall be filed with the Regional
objectives, and to collect and complete data and
Offices of the Department having jurisdiction over the
periodically disseminate information on wages and
workplace and shall be the subject of enforcement
productivity and other related information, including,
proceedings under Articles 128 and 129 of the Labor Code, as
but not limited to, employment, cost-of-living, labor
amended.
costs, investments and returns;

Section 18. Conduct of Inspection by the

Department. The Department shall conduct inspections of
establishments, as often as necessary, to determine whether
the workers are paid the prescribed wage rates and other
benefits granted by law or any Wage Order. In the conduct of
inspection in unionized companies, Department inspectors
shall always be accompanied by the president or other
responsible officer of the recognized bargaining unit or of any
interested union. In the case of non-unionized establishments,
a worker representing the workers in the said company shall
accompany the inspector.
The workers' representative shall have the right to submit his
own findings to the Department and to testify on the same if
he does not concur with the findings of the labor inspector.
f) To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to
determine whether these are consistent with national
development plans;
g) To exercise technical and administrative
supervision over the Regional Tripartite Wages and
Productivity Boards;
h) To call, from time to time, a national tripartite
conference of representatives of government,
workers and employers for the consideration of
measures to promote wage rationalization and
productivity; and

Section 19. Payment of Wages. Upon written petition of
the majority of the workers and employees concerned, all
private establishments, companies, businesses and other
entities with at least twenty-five workers and located within
one kilometer radius to a commercial, savings or rural bank,
shall pay the wages and other benefits of their workers
through any of said banks within the period and in the manner
and form prescribed under the Labor Code as amended.
Section 20. Duty of Bank. Whenever applicable and
upon request of a concerned worker or union, the bank
through which wages and other benefits are paid shall issue a
certification of the record of payment of said wages and
benefits of a particular worker or workers for a particular
payroll period.
CHAPTER II
The National Wages and Productivity Commission and
Regional Tripartite Wages and Productivity Boards
i) To exercise such powers and functions as may be
necessary to implement this Act.
Section 3. Composition of the Commission. The
Commission shall be composed of the Secretary as ex-officio
Chairman, the Director General of the National Economic and
Development Authority (NEDA) as ex-officio Vice-Chairman
and two members each from workers and employers sectors
who shall be appointed by the President for a term of five
years upon recommendation of the Secretary. The
recommendees shall be selected from the list of nominees
submitted by the workers and employers sectors. The
Executive Director of the Commission Secretariat shall also be
a member of the Commission.
The members of the Commission representing labor and
management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for
labor and management representatives in the Employees
Compensation Commission.
Section 4. Commission Secretariat. The Commission
shall be assisted by a Secretariat to be headed by an
Executive Director and two Deputy Directors, who shall be
appointed by the President upon recommendation of the
Secretary.
The Executive Director shall have the rank of a Department
Assistant Secretary, while the Deputy Directors that of a
Bureau Director shall receive the corresponding salary,
benefits and other emoluments of the positions.
Section 5. Regional Tripartite Wages and Productivity
Boards. The Regional Wages and Productivity Boards
created under the Act in all regions, including autonomous
regions as may be established by law, shall hold offices in
areas where the Regional Offices of the Department are
located.
Section 6. Powers and Functions of the Boards. The
Boards shall have the following powers and functions:
a) To develop plans, programs and projects relative
to wages, incomes and productivity improvements
for their respective regions;
Each Board shall be assisted by a Secretariat.
Section 8. Authority to Organize and Appoint
Personnel. The Chairman of the Commission shall
organize such units and appoint the necessary personnel of
the Commission and Board Secretariats, subject to pertinent
laws, rules and regulations.
CHAPTER III
Minimum Wage Determination
SECTION 1. Regional Minimum Wages. The minimum
wage rates for agricultural and non-agricultural workers and
employees in every region shall be those prescribed by the
Boards which shall in no case be lower than the statutory
minimum wage rates. These wage rates may include wages
by industry, province or locality as may be deemed necessary
by the Boards.
Section 2. Standards/Criteria for Minimum Wage
Fixing. The regional minimum wages to be established by
the Boards shall be as nearly adequate as is economically
feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being of
the workers within the framework of the national, economic,
and social development programs. In the determination of
regional minimum wages, the Boards, shall, among other
relevant factors, consider the following:

b) To determine and fix minimum wage rates

a) The demand for living wages;
applicable in their region, provinces or industries
therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission; b) Wage adjustment vis-a-vis the consumer price
index;
c) To undertake studies, researches, and surveys
necessary for the attainment of their functions, c) The cost of living and changes or increases
objectives and programs, and to collect and compile therein;
data on wages, incomes, productivity and other
related information and periodically disseminate the
d) The needs of workers and their families;
same;

e) The need to induce industries to invest in the

d) To coordinate with the other Boards as may be
countryside;
necessary to attain the policy and intention of the
Labor Code;
f) Improvements in standards of living;
e) To receive, process and act on applications for
exemption from prescribed wage rates as may be g) The prevailing wage levels;
provided by law or any Wage Order; and
h) Fair return of the capital invested and capacity to
f) To exercise such other powers and functions as pay of employers;
may be necessary to carry out their mandate under
the Labor Code.
i) Effects on employment generation and family
income; and
Implementation of the plans, programs and projects of the
Boards shall be through the respective Regional Offices of the
j) The equitable distribution of income and wealth
Department, provided, however, that the Boards shall have
along the imperatives of economic and social
technical supervision over the Regional Office of the
development.
Department with respect to the implementation of these
plans, programs and projects.
Section 3. Wage Order. Whenever conditions in the
region so warrant, the Board shall investigate and study all
Section 7. Composition of the Boards. Each Board shall
pertinent facts; and, based on standards and criteria
be composed of the Regional Director of the Department as
prescribed herein, shall determine whether a Wage Order
Chairman, the Regional Directors of the National Economic
should be issued.
and Development Authority (NEDA) and Department of Trade
and Industry (DTI) as Vice-Chairmen and two members each
of workers and employers sectors who shall be appointed by In the performance of its wage determining functions, the
the President for a term of five years upon the Board shall conduct public hearings and consultations giving
recommendation of the Secretary. The recommendees shall notices to employees' and employers' groups, provincial, city
be selected from the lists of nominees submitted by the and municipal officials and other interested parties.
workers and employers sectors.
Section 4. Effectivity of Wage Order. Any Wage Order
issued by the Boards shall take effect 15 days after its
complete publication in at least one newspaper of general
circulation in the region.
Section 5. Appeal to the Commission. Any party
aggrieved by the Wage Order issued by the Board may file an
appeal with the Commission within ten calendar days from the
publication of the Order. The Commission shall decide the
appeal within sixty calendar days from the date of filing.
Section 11. Registration/Reporting Requirement. Any
person, company, corporation, partnership or any other entity
engaged in business shall submit annually a verified itemized
listing of their labor component to the appropriate Board and
the National Statistics Office not later than January 31 of each
year, starting on January 31, 1990 in accordance with the
form to be prescribed by the Commission. The listing shall
specify the names, salaries and wages of their workers and
employees below the managerial level including learners,
apprentices and disabled/handicapped workers.

Section 6. Effect of Appeal. The filing of the appeal shall
not suspend the effectivity of the Wage Order unless the
person appealing such order files with the Commission an
undertaking with a surety or sureties in such amount as may
be fixed by the Commission.
Section 7. Wage Distortions. Where the application of
any wage increase resulting from a Wage Order issued by any
Board results in distortions in the wage structure within an
establishment, the employer and the union shall negotiate to
correct the distortions using the grievance procedure under
the collective bargaining agreement. If it remains unresolved,
it shall be decided through voluntary arbitration within ten
calendar days from the time the dispute was referred for
voluntary arbitration, unless otherwise agreed by the parties
in writing.
Where there are no collective agreements or recognized labor
unions, the employer and workers shall endeavor to correct
the wage distortion. Any dispute arising therefrom shall be
settled through the National Conciliation and Mediation Board
and if it remains unresolved after ten calendar days of
conciliation, it shall be referred to the appropriate branch of
the National Labor Relations Commission (NLRC). The NLRC
shall conduct continuous hearings and decide the dispute
within twenty calendar days from the time said dispute is
submitted for compulsory arbitration.
As per RA 8188:
Section 12. Any person, corporation, trust, firm, partnership,
association or entity which refuses or fails to pay any of the
prescribed increases or adjustments in the wage rates made
in accordance with this Act shall be punished by a fine not less
than Twenty-five thousand pesos (P25,000) nor more than One
hundred thousand pesos (P100,000) or imprisonment of not
less than two (2) years nor more than four (4) years, or both
such fine and imprisonment at the discretion of the court:
Provided, That any person convicted under this Act shall not
be entitled to the benefits provided for under the Probation
Law.
"The employer concerned shall be ordered to pay an amount
equivalent to double the unpaid benefits owing to the
employees: Provided, That payment of indemnity shall not
absolve the employer from the criminal liability imposable
under this Act.
"If the violation is committed by a corporation, trust or firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed upon the entity's responsible
officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager, managing
director or partner.

The pendency of a dispute arising from a wage distortion shall

not in any way delay the applicability of any wage increase
prescribed pursuant to the provisions of law or Wage Order.

Section 8. Non-Diminution of Benefits. Nothing in the

Act and in this Rules shall be construed to reduce any existing
wage rates, allowances and benefits of any form under
existing laws, decrees, issuances, executive orders and/or
under any contract or agreement between the workers and
employers.

Section 9. Prohibition Against Injunction. No

preliminary or permanent injunction or temporary restraining
order may be issued by any court, tribunal or other entity
against any proceedings before the Commission or Boards.

Section 10. Penal Provisions. Any person, corporation,

trust, firm, partnership, association or entity which refuses or
fails to pay any of the prescribed increases or adjustments in
the wage rates, made in accordance with the Act shall be
punished by a fine not exceeding P25,000 and/or
imprisonment of not less than one year nor more than two
years: Provided, that any person convicted under the Act shall
not be entitled to the benefits provided for under the
Probation Law.

If the violation is committed by a corporation, trust or firm,

partnership, association or any other entity, the penalty of
imprisonment shall be imposed upon the entity's responsible
officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager, managing
director or partner.
B. Working conditions for special groups of employees
1. Women
Article 130. Facilities for women. The Secretary of Labor
shall establish standards that will insure the safety and health
of women employees. In appropriate cases, he shall, by
regulations, require any employer to;
a. provide seats proper for women and permit them to
use such seats when they are free from work and
during working hours, provided they can perform
their duties in this position without detriment to
efficiency;
b. establish separate toilet rooms and lavatories for
men and women and provide at least a dressing
room for women;
c. establish a nursery in a workplace for the benefit of
the women employees therein; and
d. determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and
the like.
Article 131. Maternity leave benefits.
a. Every employer shall grant to any pregnant woman
employee who has rendered an aggregate services of
at least six months for the last twelve months,
maternity leave of at least two weeks prior to the
expected date of delivery and another four weeks
after normal delivery or abortion, with full pay based
on her regular or average weekly wages. The
employer may require from any woman employee
applying for maternity leave the production of a
medical certificate stating that delivery will probably
take place within two weeks.
b. The maternity leave shall be extended without pay
on account of illness medically certified to arise out
of the pregnancy, delivery, abortion, or miscarriage,
which renders the woman unfit for work, unless she
has earned unused leave credits from such extended
leave may be charged.
c. The maternity leave provided in this Article shall be
paid by the employer only for the first four deliveries
by a woman employee after the effectivity of this
Code.
Article 132. Family planning services; incentives for family
planning.
a. Establishments which are required by law to maintain
a clinic or infirmary shall provide free family planning
services, to their employees which shall include, but
not limited to, the application or use of contraceptive
pills and intra-uterine devices.
b. In coordination with other agencies of the
government engaged in the promotion of family
planning, the Department of Labor shall develop and
prescribe incentive bonus schemes to encourage
family planning among female workers in any
establishment or enterprise.
Article 133. Discrimination Prohibited.
It shall be unlawful for any employer to discriminate against
any woman employee with respect to terms and conditions of
employment solely on account of her sex.
The following are acts of discrimination:
a. Payment of a lesser compensation, including wage,
salary or other form of remuneration and fringe
benefits, to a female employee as against a male
employee, for work of equal value; and
b. Favoring a male employee over a female employee
with respect to promotion, training opportunities,
study and scholarship grants solely on account of
their sexes.
Criminal liability for the willful commission of any unlawful act
as provided in this article or any violation of the rules and
regulations issued pursuant to Section 2 hereof shall be
penalized as provided in Articles 288 and 289 of this Code:
Provided, That the institution of any criminal action under this
provision shall not bar the aggrieved employee from filing an
entirely separate and distinct action for money claims, which
may include claims for damages and other affirmative reliefs.
The actions hereby authorized shall proceed independently of
each other.
Article 134. Stipulation against marriage. It shall be
unlawful for an employer to require as a condition of
employment or continuation of employment that a woman
employee shall not get married, or to stipulate expressly or
tacitly that upon getting married a woman employee shall be
deemed resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage.
Article 135. Prohibited acts.
a. It shall be unlawful for any employer:
1. to deny any woman employee the benefits
provided for in this Chapter or to discharge
any woman employed by him for the
purpose of preventing her from enjoying any
of the benefits provided under this Code;
2. to discharge such woman on account of her
pregnancy, or while on leave or in
confinement due to her pregnancy; or
3. to discharge or refuse the admission of such
woman upon returning to her work for fear
that she may again be pregnant.
Article 136. Classification of certain women workers.
Any woman who is permitted or suffered to work with or
without compensation, in any night club, cocktail lounge,
massage clinic, bar or similar establishment, under the
effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of
Labor, shall be considered as an employee of such
establishments for purposes of labor and social legislation.
Chapter II
Employment of Minors
Article 137. Minimum employable age.
a. No child below fifteen years of age shall be
employed, except when he works directly under the
sole responsibility of his parents or guardian and his
employment does not in any way interfere with his
schooling.
b. A person between fifteen and eighteen years of age
may be employed for such number of hours and such
periods of the day as determined by the Secretary of
Labor in appropriate regulations.
c. The foregoing provisions shall in no case allow the
employment of a person below eighteen years of age
in an undertaking which is hazardous or deleterious
in nature as determined by the Secretary of Labor.
Article 138. Prohibition against child discrimination. No
employer shall discriminate against any person in respect to
terms and conditions of employment on account of his age.
Constitution
Article II, Section 14
The State recognizes the role of women in nation-building,
and shall ensure the fundamental equality before the law of
women and men.
Article XIII, Section 3
The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
amount of maternity benefits advanced to the
employee by the employer upon receipt of
satisfactory proof of such payment and legality
thereof; and
f. That if an employee member should give birth or
suffer miscarriage without the required contributions
having been remitted for her by her employer to the
SSS, or without the latter having been previously
notified by the employer of the time of the
pregnancy, the employer shall pay to the SSS
damages equivalent to the benefits which said
employee member would otherwise have been
entitled to.

It shall guarantee the rights of all workers to self-organization,

collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance
with law. They shall be entitled to security of tenure, humane
conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting
their rights and benefits as may be provided by law.

The State shall promote the principle of shared responsibility

between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster
industrial peace.

The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in
the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
growth.

Section 14. The State shall protect working women by

providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable them
to realize their full potential in the service of the nation.

Social Security Act

Section 14-A

Maternity Leave Benefit.

A female member who has paid at least three (3) monthly

contributions in the twelve-month period immediately
preceding the semester of her childbirth or miscarriage shall
be paid a daily maternity benefit equivalent to one hundred
percent (100%) of her average daily salary credit for sixty (60)
days or seventy eight (78) days in case of caesarean delivery,
subject to the following conditions:

a. That the employee shall have notified her employer

of her pregnancy and the probable date of her
childbirth, which notice shall be transmitted to the
SSS in accordance with the rules and regulations it
may provide;

b. The full payment shall be advanced by the employer

within thirty (30) days from the filing of the maternity
leave application;

c. That payment of daily maternity benefits shall be a

bar to the recovery of sickness benefits provided by
this Act for the same period for which daily maternity
benefits have been received;

d. That the maternity benefits provided under this

section shall be paid only for the first four (4)
deliveries or miscarriages;

e. That the SSS shall immediately reimburse the

employer of one hundred percent (100%) of the
SKIM
Republic Act No. 10151
Section 1. Article 130 of the Labor Code is hereby repealed.
Section 2. Article 131 of the Labor Code is hereby repealed.
Section 3. The subsequent articles in Book Three, Title III,
Chapter I to Chapter IV of Presidential Decree No. 442 are
hereby renumbered accordingly.
Section 4. A new chapter is hereby inserted after Book
Three, Title III of Presidential Decree No. 442, to read as
follows:
"Chapter V: "Employment of Night Workers
"Art. 154. Coverage. This chapter shall apply to all persons,
who shall be employed or permitted or suffered to work at
night, except those employed in agriculture, stock raising,
fishing, maritime transport and inland navigation, during a
period of not less than seven (7) consecutive hours, including
the interval from midnight to five o'clock in the morning, to be
determined by the Secretary of Labor and Employment, after
consulting the workers' representatives/labor organizations
and employers.
"Night worker' means any employed person whose work
requires performance of a substantial number of hours of
night work which exceeds a specified limit. This limit shall be
fixed by the Secretary of Labor after consulting the workers'
representatives/labor organizations and employers."
"Art. 155. Health Assessment. At their request, workers
shall have the right to undergo a health assessment without
charge and to receive advice on how to reduce or avoid health
problems associated with their work:
"(a) Before taking up an assignment as a night worker;
"(b) At regular intervals during such an assignment; and
"(c) If they experience health problems during such an
assignment which are not caused by factors other than the
performance of night work.
"With the exception of a finding of unfitness for night work,
the findings of such assessments shall not be transmitted to
others without the workers' consent and shall not be used to
their detriment."
"Art. 156. Mandatory Facilities. Suitable first-aid facilities
shall be made available for workers performing night work,
including arrangements where such workers, where
necessary, can be taken immediately to a place for
appropriate treatment. The employers are likewise required to
provide safe and healthful working conditions and adequate or
reasonable facilities such as sleeping or resting quarters in the
establishment and transportation from the work premises to
the nearest point of their residence subject to exceptions and
guidelines to be provided by the DOLE."
"Art. 157. Transfer. Night workers who are certified as unfit
for night work, due to health reasons, shall be transferred,
whenever practicable, to a similar job for which they are fit to
work.
"If such transfer to a similar job is not practicable, these
workers shall be granted the same benefits as other workers
who are unable to work, or to secure employment during such
period.
"A night worker certified as temporarily unfit for night work
shall be given the same protection against dismissal or notice
of dismissal as other workers who are prevented from working
for reasons of health."
"Art. 158. Women Night Workers. Measures shall be taken
to ensure that an alternative to night work is available to
women workers who would otherwise be called upon to
perform such work:
"(a) Before and after childbirth, for a period of at least sixteen
(16) weeks, which shall be divided between the time before
and after childbirth;
"(b) For additional periods, in respect of which a medical
certificate is produced stating that said additional periods are
necessary for the health of the mother or child:
"(1) During pregnancy;
"(2) During a specified time beyond the period, after childbirth
is fixed pursuant to subparagraph (a) above, the length of
which shall be determined by the DOLE after consulting the
labor organizations and employers.
"During the periods referred to in this article:
"(i) A woman worker shall not be dismissed or given notice of
dismissal, except for just or authorized causes provided for in
this Code that are not connected with pregnancy, childbirth
and childcare responsibilities.
"(ii) A woman worker shall not lose the benefits regarding her
status, seniority, and access to promotion which may attach
to her regular night work position.
"Pregnant women and nursing mothers may be allowed to
work at night only if a competent physician, other than the
company physician, shall certify their fitness to render night
work, and specify, in the case of pregnant employees, the
period of the pregnancy that they can safely work.
"The measures referred to in this article may include transfer
to day work where this is possible, the provision of social
security benefits or an extension of maternity leave.
"The provisions of this article shall not have the effect of
reducing the protection and benefits connected with maternity
leave under existing laws."
"Art. 159. Compensation. The compensation for night
workers in the form of working time, pay or similar benefits
shall recognize the exceptional nature of night work."
"Art. 160. Social Services. Appropriate social services shall
be provided for night workers and, where necessary, for
workers performing night work."
"Art. 161. Night Work Schedules. Before introducing work
schedules requiring the services of night workers, the
employer shall consult the workers' representatives/labor
organizations concerned on the details of such schedules and
the forms of organization of night work that are best adapted
to the establishment and its personnel, as well as on the
occupational health measures and social services which are
required. In establishments employing night workers,
consultation shall take place regularly."
Section 5
The subsequent articles starting from Book Four, Title I,
Chapter I of Presidential Decree No. 442 are hereby
renumbered accordingly.
Section 6
Application.
The measures referred to in this chapter shall be applied not
later than six (6) months from the effectivity of this Act.
Section 7
Guidelines.
The DOLE shall promulgate appropriate regulations in addition
to existing ones to ensure protection, safety and welfare of
night workers.

Section 8

Penalties.

Any violation of this Act, and the rules and regulations issued
pursuant hereof shall be punished with a fine of not less than
Thirty thousand pesos (P30,000.00) nor more than Fifty
thousand pesos (P50,000.00) or imprisonment of not less than
six (6) months, or both, at the discretion of the court. If the
offense is committed by a corporation, trust, firm, partnership
or association, or other entity, the penalty shall be imposed
upon the guilty officer or officers of such corporation, trust,
firm, partnership or association, or entity.
2. Minors

Chapter II
EMPLOYMENT OF MINORS

Article 139. Minimum employable age. No child below fifteen

(15) years of age shall be employed, except when he works
directly under the sole responsibility of his parents or
guardian, and his employment does not in any way interfere
with his schooling.

Any person between fifteen (15) and eighteen (18) years of

age may be employed for such number of hours and such
periods of the day as determined by the Secretary of Labor
and Employment in appropriate regulations.

The foregoing provisions shall in no case allow the

employment of a person below eighteen (18) years of age in
an undertaking which is hazardous or deleterious in nature as
determined by the Secretary of Labor and Employment.

Article 140. Prohibition against child discrimination. No

employer shall discriminate against any person in respect to
terms and conditions of employment on account of his age.
 SKIM
IMPORTANT: definitions, industries they can work in, work
hours, point of the day, activities, role of dole, permit,
limits
Section 1
Section 2 of Republic Act No. 7610, as amended, otherwise
known as the "Special Protection of Children Against Child
Abuse, Exploitation and Discrimination Act", is hereby
amended to read as follows:
"Sec. 2. Declaration of State Policy and Principles. - It is
hereby declared to be the policy of the State to provide
special protection to children from all forms of abuse, neglect,
cruelty, exploitation and discrimination, and other conditions
prejudicial to their development including child labor and its
worst forms; provide sanctions for their commission and carry
out a program for prevention and deterrence of and crisis
intervention in situations of child abuse, exploitation and
discrimination. The State shall intervene on behalf of the child
when the parent, guardian, teacher or person having care or
custody of the child fails or is unable to protect the child
against abuse, exploitation and discrimination or when such
acts against the child are committed by the said parent,
guardian, teacher or person having care and custody of the
same.
"It shall be the policy of the State to protect and rehabilitate
children gravely threatened or endangered by circumstances
which affect or will affect their survival and normal
development and over which they have no control.
"The best interests of children shall be the paramount
consideration in all actions concerning them, whether
undertaken by public or private social welfare institutions,
courts of law, administrative authorities, and legislative
bodies, consistent with the principle of First Call for Children
as enunciated in the United Nations Convention on the Rights
of the Child. Every effort shall be exerted to promote the
welfare of children and enhance their opportunities for a
useful and happy life."
Section 2
Section 12 of the same Act, as amended, is hereby further
amended to read as follows:
"Sec. 2. Employment of Children - Children below fifteen (15)
years of age shall not be employed except:
"1) When a child works directly under the sole responsibility of
his/her parents or legal guardian and where only members of
his/her family are employed: Provided, however, That his/her
employment neither endangers his/her life, safety, health, and
morals, nor impairs his/her normal development: Provided,
further, That the parent or legal guardian shall provide the
said child with the prescribed primary and/or secondary
education; or
"2) Where a child's employment or participation in public
entertainment or information through cinema, theater, radio,
television or other forms of media is essential: Provided, That
the employment contract is concluded by the child's parents
or legal guardian, with the express agreement of the child
concerned, if possible, and the approval of the Department of
Labor and Employment: Provided, further, That the following
requirements in all instances are strictly complied with:
"(a) The employer shall ensure the protection, health, safety,
morals and normal development of the child;
"(b) The employer shall institute measures to prevent the
child's exploitation or discrimination taking into account the
system and level of remuneration, and the duration and
arrangement of working time; and
"(c) The employer shall formulate and implement, subject to
the approval and supervision of competent authorities, a
continuing program for training and skills acquisition of the
child.
"In the above-exceptional cases where any such child may be
employed, the employer shall first secure, before engaging
such child, a work permit from the Department of Labor and
Employment which shall ensure observance of the above
requirements.
"For purposes of this Article, the term "child" shall apply to all
persons under eighteen (18) years of age."
Section 3
The same Act, as amended, is hereby further amended by
adding new sections to be denominated as Sections 12-A, 12-
B, 12-C, and 12-D to read as follows:
"Sec. 12-A. Hours of Work of a Working Child. - Under the
exceptions provided in Section 12 of this Act, as amended:
"(1) A child below fifteen (15) years of age may be allowed to
work for not more than twenty (20) hours a week: Provided,
That the work shall not be more than four (4) hours at any
given day;
"(2) A child fifteen (15) years of age but below eighteen (18)
shall not be allowed to work for more than eight (8) hours a
day, and in no case beyond forty (40) hours a week;
"(3) No child below fifteen (15) years of age shall be allowed
to work between eight o'clock in the evening and six o'clock in
the morning of the following day and no child fifteen (15)
years of age but below eighteen (18) shall be allowed to work
between ten o'clock in the evening and six o'clock in the
morning of the following day."
"Sec. 12-B. Ownership, Usage and Administration of the
Working Child's Income. - The wages, salaries, earnings and
other income of the working child shall belong to him/her in
ownership and shall be set aside primarily for his/her support,
education or skills acquisition and secondarily to the collective
needs of the family: Provided, That not more than twenty
percent (20%) of the child's income may be used for the
collective needs of the family.
"The income of the working child and/or the property acquired
through the work of the child shall be administered by both
parents. In the absence or incapacity of either of the parents,
the other parent shall administer the same. In case both
parents are absent or incapacitated, the order of preference
on parental authority as provided for under the Family Code
shall apply.
"Sec. 12-C. Trust Fund to Preserve Part of the Working Child's
Income. - The parent or legal guardian of a working child
below eighteen (18) years of age shall set up a trust fund for
at least thirty percent (30%) of the earnings of the child
whose wages and salaries from work and other income
amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render a semi-
annual accounting of the fund to the Department of Labor and
Employment, in compliance with the provisions of this Act.
The child shall have full control over the trust fund upon
reaching the age of majority.
"Sec. 12-D. Prohibition Against Worst Forms of Child Labor. -
No child shall be engaged in the worst forms of child labor.
The phrase "worst forms of child labor" shall refer to any of
the following:
"(1) All forms of slavery, as defined under the "Anti-trafficking
in Persons Act of 2003", or practices similar to slavery such as
sale and trafficking of children, debt bondage and serfdom
and forced or compulsory labor, including recruitment of
children for use in armed conflict; or
"(2) The use, procuring, offering or exposing of a child for
prostitution, for the production of pornography or for
pornographic performances; or
"(3) The use, procuring or offering of a child for illegal or illicit
activities, including the production and trafficking of
dangerous drugs and volatile substances prohibited under
existing laws; or
"(4) Work which, by its nature or the circumstances in which it
is carried out, is hazardous or likely to be harmful to the
health, safety or morals of children, such that it:
"a) Debases, degrades or demeans the intrinsic worth and
dignity of a child as a human being; or
"b) Exposes the child to physical, emotional or sexual abuse,
or is found to be highly stressful psychologically or may
prejudice morals; or
"c) Is performed underground, underwater or at dangerous
heights; or
"d) Involves the use of dangerous machinery, equipment and
tools such as power-driven or explosive power-actuated tools;
or
"e) Exposes the child to physical danger such as, but not
limited to the dangerous feats of balancing, physical strength
or contortion, or which requires the manual transport of heavy
loads; or
"f) Is performed in an unhealthy environment exposing the
child to hazardous working conditions, elements, substances,
co-agents or processes involving ionizing, radiation, fire,
flammable substances, noxious components and the like, or to
extreme temperatures, noise levels, or vibrations; or
"g) Is performed under particularly difficult conditions; or
"h) Exposes the child to biological agents such as bacteria,
fungi, viruses, protozoans, nematodes and other parasites; or
"i) Involves the manufacture or handling of explosives and
other pyrotechnic products."
Section 4
Section 13 of the same Act is hereby amended to read as
follows:
"Sec. 13. Access to Education and Training for Working
Children - "a) No child shall be deprived of formal or non-
formal education. In all cases of employment allowed in this
Act, the employer shall provide a working child with access to
at least primary and secondary education.
"b) To ensure and guarantee the access of the working child to
education and training, the Department of Education (DEPED)
shall: (1) formulate, promulgate, and implement relevant and
effective course designs and educational programs; (2)
conduct the necessary training for the implementation of the
appropriate curriculum for the purpose; (3) ensure the
availability of the needed educational facilities and materials;
and (4) conduct continuing research and development
program for the necessary and relevant alternative education
of the working child.
"c) The DEPED shall promulgate a course design under its
non-formal education program aimed at promoting the
intellectual, moral and vocational efficiency of working
children who have not undergone or finished elementary or
secondary education. Such course design shall integrate the
learning process deemed most effective under given
circumstances."
Section 5
Section 14 of the same Act is hereby amended to read as
follows:
"Sec. 14. Prohibition on the Employment of Children in Certain
Advertisements. - No child shall be employed as a model in
any advertisement directly or indirectly promoting alcoholic
beverages, intoxicating drinks, tobacco and its byproducts,
gambling or any form of violence or pornography."
Section 6
Section 16 of the same Act, is hereby amended to read as
follows:
"Sec. 16. Penal Provisions -
"a) Any employer who violates Sections 12, 12-A, and Section
14 of this act, as amended, shall be penalized by
imprisonment of six (6) months and one (1) day to six (6)
years or a fine of not less than Fifty thousand pesos
(P50,000.00) but not more than Three hundred thousand
pesos (P300,000.00) or both at the discretion of the court.
"b) Any person who violates the provision of Section 12-D of
this act or the employer of the subcontractor who employs, or
the one who facilitates the employment of a child in
hazardous work, shall suffer the penalty of a fine of not less
than One hundred thousand pesos (P100,000.00) but not
more than One million pesos (P1,000,000.00), or
imprisonment of not less than twelve (12) years and one (1)
day to twenty (20) years, or both such fine and imprisonment
at the discretion of the court.
"c) Any person who violates Sections 12-D(1) and 12-D(2)
shall be prosecuted and penalized in accordance with the
penalty provided for by R. A. 9208 otherwise known as the
"Anti-trafficking in Persons Act of 2003": Provided, That Such
penalty shall be imposed in its maximum period.
"d) Any person who violates Section 12-D (3) shall be
prosecuted and penalized in accordance with R.A. 9165,
otherwise known as the "Comprehensive Dangerous Drugs Act
of 2002"; Provided, That such penalty shall be imposed in its
maximum period.
"e) If a corporation commits any of the violations aforecited,
the board of directors/trustees and officers, which include the
president, treasurer and secretary of the said corporation who
participated in or knowingly allowed the violation, shall be
penalized accordingly as provided for under this Section.
"f) Parents, biological or by legal fiction, and legal guardians
found to be violating Sections 12, 12-A, 12-B and 12-C of this
Act shall pay a fine of not less than Ten thousand pesos
(P10,000.00) but not more than One hundred thousand pesos
(P100,000.00), or be required to render community service for
not less than thirty (30) days but not more than one (1) year,
or both such fine and community service at the discretion of
the court: Provided, That the maximum length of community
service shall be imposed on parents or legal guardians who
have violated the provisions of this Act three (3) times;
Provided, further, That in addition to the community service,
the penalty of imprisonment of thirty (30) days but not more
than one (1) year or both at the discretion of the court, shall
be imposed on the parents or legal guardians who have
violated the provisions of this Act more than three (3) times.
"g) The Secretary, of Labor and Employment or his/her duly
authorized representative may, after due notice and hearing,
order the closure of any business firm or establishment found
to have violated any of the provisions of this Act more than
three (3) times. He/she shall likewise order the immediate
closure of such firm or establishment if:
"(1) The violation of any provision of this Act has resulted in
the death, insanity or serious physical injury of a child
employed in such establishment; or
"(2) Such firm or establishment is engaged or employed in
prostitution or in obscene or lewd shows.
"h) In case of such closure, the employer shall be required to
pay the employee(s) the separation pay and other monetary
benefits provided for by law."
Section 7
The same Act is hereby further amended by adding a new
section to be denominated as Section 16-A, to read as follows:
"Sec. 16-A. Trust Fund from Fines and Penalties - The fine
imposed by the court shall be treated as a Trust Fund,
administered by the Department of Labor and Employment
and disbursed exclusively for the needs, including the costs of
rehabilitation and reintegration into the mainstream of society
of the working children who are victims of the violations of
this Act, and for the programs and projects that will prevent
acts of child labor."
"Sec. 15. Exemptions from Filing Fees. - When the victim of
child labor institutes a separate civil action for the recovery of
civil damages, he/she shall be exempt from payment of filing
fees.
"Sec. 16-C. Access to Immediate Legal, Medical and Psycho-
Social Services - The working child shall have the right to free
legal, medical and psycho-social services to be provided by
the State."
Section 10
Implementing Rules and Regulations -
The Secretary of Labor and Employment, in coordination with
the Committees on Labor and Employment of both Houses of
Congress, shall issue the necessary Implementing Rules and
Regulations (IRR) to effectively implement the provisions of
this Act, in consultation with concerned public and private
sectors, within sixty (60) days from the effectivity of this Act.
Such rules and regulations shall take effect upon their
publication in two (2) national newspapers of general
circulation.

Section 8

Section 27 of the same Act is hereby amended to read as

follows:

"Sec. 27. Who May File a Complaint - Complaints on cases of

unlawful acts committed against children as enumerated
herein may be filed by the following:

"(a) Offended party;

"(b) Parents or guardians;

"(c) Ascendant or collateral relative within the third degree of

consanguinity;

"(d) Officer, social worker or representative of a licensed child-

caring institution;

"(e) Officer or social worker of the Department of Social

Welfare and Development;

"(f) Barangay chairman of the place where the violation

occurred, where the child is residing or employed; or

"(g) At least three (3) concerned, responsible citizens where

the violation occurred."

Section 9

The same Act is hereby further amended by adding new

sections to Section 16 to be denominated as Sections 16-A,
16-B and 16-C to read as follows:

"Sec. 16-A. Jurisdiction - The family courts shall have original

jurisdiction over all cases involving offenses punishable under
this Act: Provided, That in cities or provinces where there are
no family courts yet, the regional trial courts and the
municipal trial courts shall have concurrent jurisdiction
depending on the penalties prescribed for the offense
charged.

"The preliminary investigation of cases filed under this Act

shall be terminated within a period of thirty (30) days from the
date of filing.

"If the preliminary investigation establishes a prima facie

case, then the corresponding information shall be filed in
court within forty eight (48) hours from the termination of the
investigation.

"Trial of cases under this Act shall be terminated by the court

not later than ninety (90) days from the date of filing of
information. Decision on said cases shall be rendered within a
period of fifteen (15) days from the date of submission of the
case.
3. Househelpers
Chapter III
EMPLOYMENT OF HOUSEHELPERS
Article 141. Coverage. This Chapter shall apply to all persons
rendering services in households for compensation.
"Domestic or household service" shall mean service in the
employers home which is usually necessary or desirable for
the maintenance and enjoyment thereof and includes
ministering to the personal comfort and convenience of the
members of the employers household, including services of
family drivers.
Article 142. Contract of domestic service. The original
contract of domestic service shall not last for more than two
(2) years but it may be renewed for such periods as may be
agreed upon by the parties.
Article 143. Minimum wage.
(a) Househelpers shall be paid the following
minimum wage rates:
1. Eight hundred pesos (P800.00) a month for
househelpers in Manila, Quezon, Pasay, and Caloocan
cities and municipalities of Makati, San Juan,
Mandaluyong, Muntinlupa, Navotas, Malabon,
Paraaque, Las Pias, Pasig, Marikina, Valenzuela,
Taguig and Pateros in Metro Manila and in highly
urbanized cities;
2. Six hundred fifty pesos (P650.00) a month for those
in other chartered cities and first-class municipalities;
and
3. Five hundred fifty pesos (P550.00) a month for those
in other municipalities.
Provided, That the employers shall review the employment
contracts of their househelpers every three (3) years with the
end in view of improving the terms and conditions thereof.
Provided, further, That those househelpers who are receiving
at least One thousand pesos (P1,000.00) shall be covered by
the Social Security System (SSS) and be entitled to all the
benefits provided thereunder. (As amended by Republic Act
No. 7655, August 19, 1993)
Article 144. Minimum cash wage. The minimum wage rates
prescribed under this Chapter shall be the basic cash wages
which shall be paid to the househelpers in addition to lodging,
food and medical attendance.
Article 145. Assignment to non-household work. No
househelper shall be assigned to work in a commercial,
industrial or agricultural enterprise at a wage or salary rate
lower than that provided for agricultural or non-agricultural
workers as prescribed herein.
Article 146. Opportunity for education. If the househelper is
under the age of eighteen (18) years, the employer shall give
him or her an opportunity for at least elementary education.
The cost of education shall be part of the househelpers
compensation, unless there is a stipulation to the contrary.
Article 147. Treatment of househelpers. The employer shall
treat the househelper in a just and humane manner. In no
case shall physical violence be used upon the househelper.
Article 148. Board, lodging, and medical attendance. The
employer shall furnish the househelper, free of charge,
suitable and sanitary living quarters as well as adequate food
and medical attendance.
Article 149. Indemnity for unjust termination of services. If
the period of household service is fixed, neither the employer
nor the househelper may terminate the contract before the
expiration of the term, except for a just cause. If the
househelper is unjustly dismissed, he or she shall be paid the
compensation already earned plus that for fifteen (15) days by
way of indemnity.
If the househelper leaves without justifiable reason, he or she
shall forfeit any unpaid salary due him or her not exceeding
fifteen (15) days.
Article 150. Service of termination notice. If the duration of
the household service is not determined either in stipulation
or by the nature of the service, the employer or the
househelper may give notice to put an end to the relationship
five (5) days before the intended termination of the service.
Article 151. Employment certification. Upon the severance of
the household service relation, the employer shall give the
househelper a written statement of the nature and duration of
the service and his or her efficiency and conduct as
househelper.
Article 152. Employment record. The employer may keep
such records as he may deem necessary to reflect the actual
terms and conditions of employment of his househelper,
which the latter shall authenticate by signature or thumbmark
upon request of the employer.
RA 7655 Amendment to Article 143
Section 1
Household Service (n)
Article 1689. Household service shall always be reasonably
compensated. Any stipulation that household service is
without compensation shall be void. Such compensation shall
be in addition to the house helpers lodging, food, and medical
attendance.
Superseded
Article 1690. The head of the family shall furnish, free of
charge, to the house helper, suitable and sanitary quarters as
well as adequate food and medical attendance.
Superseded
Article 1691. If the house helper is under the age of
eighteen years, the head of the family shall give an
opportunity to the house helper for at least elementary
education. The cost of such education shall be a part of the
house helpers compensation, unless there is a stipulation to
the contrary.
Superseded
Article 1692. No contract for household service shall last for
more than two years. However, such contract may be
renewed from year to year.
Superseded
Article 1693. The house helpers clothes shall be subject to
stipulation. However, any contract for household service shall
be void if thereby the house helper cannot afford to acquire
suitable clothing.
Article 1694. The head of the family shall treat the house
helper in a just and humane manner. In no case shall physical
violence be used upon the house helper.
Superseded
Article 1695. House helpers shall not be required to work
more than ten hours a day. Every house helper shall be
allowed four days vacation each month, with pay.
Article 1696. In case of death of the house helper, the head
of the family shall bear the funeral expenses if the house
helper has no relatives in the place where the head of the
family lives, with sufficient means therefor.
Article 1697. If the period for household service is fixed,
neither the head of the family nor the house helper may
terminate the contract before the expiration of the term,
except for a just cause. If the house helper is unjustly
dismissed, he shall be paid the compensation already earned
plus that for fifteen days by way of indemnity. If the house
helper leaves without justifiable reason, he shall forfeit any
salary due him and unpaid, for not exceeding fifteen days.
Superseded
Article 1698. If the duration of the household service is not
determined either by stipulation or by the nature of the
service, the head of the family or the house helper may give
notice to put an end to the service relation, according to the
following rules:
1. If the compensation is paid by the day, notice may
be given on any day that the service shall end at the
close of the following day;
2. If the compensation is paid by the week, notice may
be given, at the latest, on the first business day of
the week, that the service shall be terminated at the
end of the seventh day from the beginning of the
week;
3. If the compensation is paid by the month, notice may
be given, at the latest, on the fifth day of the month,
that the service shall cease at the end of the month.
Article 1699. Upon the extinguishment of the service
relation, the house helper may demand from the head of the
family a written statement on the nature and duration of the
service and the efficiency and conduct of the house helper.
Superseded
4. Homeworkers
Article 153. Distribution of homework. For purposes of this
Chapter, the "employer" of homeworkers includes any person,
natural or artificial, who for his account or benefit, or on
behalf of any person residing outside the country, directly or
indirectly, or through any employee, agent, contractor, sub-
contractor or any other person:
1. delivers, or causes to be delivered, any goods,
articles or materials to be processed or fabricated in
or about a home and thereafter to be returned or to
be disposed of or distributed in accordance with his
directions; or
2. sells any goods, articles or materials for the purpose
of having the same processed or fabricated in or
about a home and then rebuys them after such
processing or fabrication, either himself or through
some other person.
Chapter V
Employment of Night Workers
Article 154. Coverage. This chapter shall apply to all
persons, who shall be employed or permitted or suffered to
work at night, except those employed in agriculture, stock
raising, fishing, maritime transport and inland navigation,
during a period of not less than seven (7) consecutive hours,
including the interval from midnight to five o'clock in the
morning, to be determined by the Secretary of Labor and
Employment, after consulting the workers'
representatives/labor organizations and employers.
"Night worker" means any employed person whose work
requires performance of a substantial number of hours of
night work which exceeds a specified limit. This limit shall be
fixed by the Secretary of Labor after consulting the workers'
representatives/labor organizations and employers.
Article 155. Health Assessment. At their request, workers
shall have the right to undergo a health assessment without
charge and to receive advice on how to reduce or avoid health
problems associated with their work:
a. Before taking up an assignment as a night worker;
b. At regular intervals during such an assignment; and
c. If they experience health problems during such an
assignment which are not caused by factors other
than the performance of night work. "With the
exception of a finding of unfitness for night work, the
findings of such assessments shall not be
transmitted to others without the workers' consent
and shall not be used to their detriment.
RULE XIV
Employment of Homeworkers
Section 1. General statement on coverage. This Rule shall
apply to any homeworker who performs in or about his home
any processing of goods or materials, in whole or in part,
which have been furnished directly or indirectly by an
employer and thereafter to be returned to the latter.
Section 2. Definitions. As used in this Rule, the following
terms shall have the meanings indicated hereunder:
(a) "Home" means any room, house, apartment, or
other premises used regularly, in whole or in part, as
a dwelling place, except those situated within the
premises or compound of an employer, contractor,
and the work performed therein is under the active
or personal supervision by, or for, the latter.
(b) "Employer" means any natural or artificial person
who, for his own account or benefit, or on behalf of
any person residing outside the Philippines, directly
or indirectly, or through any employee, agent,
contractor, sub-contractor; or any other person:
(1) Delivers or causes to be delivered any
goods or articles to be processed in or about
a home and thereafter to be returned or to
be disposed of or distributed in accordance
with his direction; or
(2) Sells any goods or articles for the
purpose of having such goods or articles
processed in or about a home and then
repurchases them himself or through
another after such processing.
(c) "Contractor" or "sub-contractor" means any
person who, for the account or benefit of an
employer, delivers or caused to be delivered to a
homeworker goods or articles to be processed in or
about his home and thereafter to be returned,
disposed of or distributed in accordance with the
direction of the employer.
(d) "Processing" means manufacturing, fabricating,
finishing, repairing, altering, packing, wrapping or
handling any material.
Section 3. Payment for work. (a) Immediately upon receipt
of the finished goods or articles, the employer shall pay the
homeworker or the contractor or sub-contractor, as the case
may be, for the work performed; Provided, However, that
where payment is made to a contractor or sub-contractor, the
homeworker shall be paid within the week after the contractor
or sub-contractor has collected the goods or articles from the
homeworkers.
(b) The Secretary of Labor and Employment shall from time to
time establish the standard minimum piece or output rate in
appropriate orders for the particular work or processing to be
performed by the homeworkers.
Section 4. Deductions. No employee, contractor, or sub-
contractor shall make any deduction from the homeworker's
earnings for the value of materials which have been lost,
destroyed, soiled or otherwise damaged unless the following
conditions are met:
(a) The homeworker concerned is clearly shown to be
responsible for the loss or damage;
(b) The employee is given reasonable opportunity to
show cause why deductions should not be made;
(c) The amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damages; and
(d) The deduction is made at such rate that the
amount deducted does not exceed 20% of the
homeworker's earnings in a week.
Section 5. Conditions for payment of work. (a) The
employer may require the homeworker to re-do work which
has been improperly executed without having to pay the
stipulated rate more than once.
(b) An employer, contractor, or sub-contractor need not pay
the homeworker for any work which has been done on goods
and articles which have been returned for reasons attributable
to the fault of the homeworker.
Section 6. Disagreement between homeworkers and
employer. In cases of disagreement between the
homeworker and the employer, contractor or sub-contractor
on matters falling under Section 4 (a), 5 and 6 of this Rule,
either party may refer the case to the Regional Office having
jurisdiction over the homeworker. The Regional Office shall
decide the case within ten (10) working days from receipt of
the case. Its decision shall be final and unappealable.
Section 7. Liability of employer and contractor. Whenever
an employer shall contract with another for the performance
of the employer's work, it shall be the duty of such employer
to provide in such contract that the employees or
homeworkers of the contractor and the latter's sub-contractor
shall be paid in accordance with the provisions of this Rule. In
the event that such contractor or sub-contractor fails to pay
the wages or earnings of his employees or homeworkers as
specified in this Rule, such employer shall be jointly and
severally liable with the contractor or sub-contractor to the
workers of the latter, to the extent that such work is
performed under such contract, in the same manner as if the
employees or homeworkers were directly engaged by the
employer.
C. RA 7877 Anti-Sexual Harassment Act 1995
Section 3. Work, Education or Training-related Sexual
Harassment Defined.
Work, education or training-related sexual harassment is
committed by an employer, employee, manager, supervisor,
agent of the employer, teacher, instructor, professor, coach,
trainor, or any other person who, having authority, influence
or moral ascendancy over another in a work or training or
education environment, demands, requests or otherwise
requires any sexual favor from the other, regardless of
whether the demand, request or requirement for submission is
accepted by the object of said act.
a. In a work-related or employment environment,
sexual harassment is committed when:
1. The sexual favor is made as a condition in
the hiring or in the employment, re-
employment or continued employment of
said individual, or in granting said individual
favorable compensation, terms, conditions,
promotions, or privileges; or the refusal to
grant the sexual favor results in limiting,
segregating or classifying the employee
which in any way would discriminate,
deprive or diminish employment
opportunities or otherwise adversely affect
said employee;
2. The above acts would impair the employee's
rights or privileges under existing labor
laws; or
3. The above acts would result in an
intimidating, hostile, or offensive
environment for the employee.
b. In an education or training environment, sexual
harassment is committed:
1. Against one who is under the care, custody
or supervision of the offender;
2. Against one whose education, training,
apprenticeship or tutorship is entrusted to
the offender;
3. When the sexual favor is made a condition
to the giving of a passing grade, or the
granting of honors and scholarships or the
payment of a stipend, allowance or other
benefits, privileges, or considerations; or
4. When the sexual advances result in an
intimidating, hostile or offensive
environment for the student, trainee or
apprentice.
Any person who directs or induces another to commit any act
of sexual harassment as herein defined, or who cooperates in
the commission thereof by another without which it would not
have been committed, shall also be held liable under this Act.
Section 4. Duty of the Employer or Head of Office in a Work-
related, Education or Trainings Environment.
It shall be the duty of the employer or the head of the work-
related, educational or training environment or institution, to
prevent or deter the commission of acts of sexual harassment
and to provide the procedures for the resolution, settlement or
prosecution of acts of sexual harassment. Towards this end,
the employer or head of office shall:
a. Promulgate appropriate rules and regulations in
consultation with and jointly approved by the
employees or students or trainees, through their duly
designated representatives, prescribing the
procedure for the investigation of sexual harassment
cases and the administrative sanctions therefor.
Administrative sanctions shall not be a bar to
prosecution in the proper courts for unlawful acts of
sexual harassment.
The said rules and regulations issued pursuant to this
subsection (a) shall include, among others,
guidelines on proper decorum in the workplace and
educational or training institutions.
 b. Create a committee on decorum and investigation of
cases on sexual harassment. The committee shall
conduct meetings, as the case may be, with officers
and employees, teachers, instructors, professors,
coaches, trainors and students or trainees to
increase understanding and prevent incidents of
sexual harassment. It shall also conduct the
investigation of alleged cases constituting sexual
harassment.

In the case of a work-related environment, the

committee shall be composed of at least one(1)
representative each from the management, the
union, if any, the employees from the supervisory
rank, and from the rank and file employees.

In the case of the educational or training institution,

the committee shall be composed of at least one (1)
representative from the administration, the trainors,
teachers, instructors, professors or coaches and
students or trainees, as the case may be.

The employer or head of office, educational or

training institution shall disseminate or post a copy of
this Act for the information of all concerned.

Section 5. Liability of the Employer, Head of Office,

Educational or Training Institution. solidary if informed of
such acts by the offended party and no immediate action is
taken thereon.

Section 6. Independent Action for Damages. Nothing in

this Act shall preclude the victim of work, education or
training-related sexual harassment from instituting a separate
and independent action for damages and other affirmative
relief.

Section 7. Penalties. Any person who violates the

provisions of this Act shall, upon conviction, be penalized by
imprisonment of not less than one (1) month nor more than
six (6) months, or a fine of not less than Ten thousand pesos
(P10,000) nor more than Twenty thousand pesos (P20,000), or
both such fine and imprisonment at the discretion of the
court.

Any action arising from the violation of the provisions of this

Act shall prescribe in three (3) years.
SKIM
Kasambahay Law
Domestic Workers Act (Batas Kasambahay)
Article I
General Provisions
Section 1 Short Title.
This Act shall be known as the "Domestic Workers Act" or
"Batas Kasambahay".
Section 3 Coverage. This Act applies to all domestic
workers employed and working within the country.
Section 4 Definition of Terms. As used in this Act, the term:
a. Debt bondage refers to the rendering of service by
the domestic worker as security or payment for a
debt where the length and nature of service is not
clearly defined or when the value of the service is not
reasonably applied in the payment of the debt.
b. Deployment expenses refers to expenses that are
directly used for the transfer of the domestic worker
from place of origin to the place of work covering the
cost of transportation. Advances or loans by the
domestic worker are not included in the definition of
deployment expenses.
c. Domestic work refers to work performed in or for a
household or households.
d. Domestic worker or "Kasambahay" refers to any
person engaged in domestic work within an
employment relationship such as, but not limited to,
the following: general househelp, nursemaid or
"yaya", cook, gardener, or laundry person, but shall
exclude any person who performs domestic work
only occasionally or sporadically and not on an
occupational basis.
The term shall not include children who are under
foster family arrangement, and are provided access
to education and given an allowance incidental to
education, i.e., "baon", transportation, school
projects and school activities.
e. Employer refers to any person who engages and
controls the services of a domestic worker and is
party to the employment contract.
f. Household refers to the immediate members of the
family or the occupants of the house that are directly
provided services by the domestic worker.
g. Private Employment Agency (PEA) refers to any
individual, legitimate partnership, corporation or
entity licensed to engage in the recruitment and
placement of domestic workers for local
employment.
h. Working children, as used under this Act, refers to
domestic workers who are fifteen (15) years old and
above but below eighteen (18) years old.
Article II
Rights and Privileges
Section 5
Standard of Treatment.
The employer or any member of the household shall not
subject a domestic worker or "kasambahay" to any kind of
abuse nor inflict any form of physical violence or harassment
or any act tending to degrade the dignity of a domestic
worker.
Section 6
Board, Lodging and Medical Attendance.
The employer shall provide for the basic necessities of the
domestic worker to include at least three (3) adequate meals
a day and humane sleeping arrangements that ensure safety.
The employer shall provide appropriate rest and assistance to
the domestic worker in case of illnesses and injuries sustained
during service without loss of benefits.
At no instance shall the employer withdraw or hold in
abeyance the provision of these basic necessities as
punishment or disciplinary action to the domestic worker.
Section 7
Guarantee of Privacy.
Respect for the privacy of the domestic worker shall be
guaranteed at all times and shall extend to all forms of
communication and personal effects. This guarantee equally
recognizes that the domestic worker is obliged to render
satisfactory service at all times.
Section 8
Access to Outside Communication.
The employer shall grant the domestic worker access to
outside communication during free time: Provided, That in
case of emergency, access to communication shall be granted
even during work time. Should the domestic worker make use
of the employer's telephone or other communication facilities,
the costs shall be borne by the domestic worker, unless such
charges are waived by the employer.
Section 9
Right to Education and Training.
The employer shall afford the domestic worker the opportunity
to finish basic education and may allow access to alternative
learning systems and, as far as practicable, higher education
or technical and vocational training. The employer shall adjust
the work schedule of the domestic worker to allow such
access to education or training without hampering the
services required by the employer.
Section 10
Prohibition Against Privileged Information.
All communication and information pertaining to the employer
or members of the household shall be treated as privileged
and confidential, and shall not be publicly disclosed by the
domestic worker during and after employment. Such
privileged information shall be inadmissible in evidence
except when the suit involves the employer or any member of
the household in a crime against persons, property, personal
liberty and security, and chastity.
Article III
Pre-employment
Section 11
Employment Contract.
An employment contract shall be executed by and between
the domestic worker and the employer before the
commencement of the service in a language or dialect
understood by both the domestic worker and the employer.
The domestic worker shall be provided a copy of the duly
signed employment contract which must include the
following:
a. Duties and responsibilities of the domestic worker;
b. Period of employment;
c. Compensation;
d. Authorized deductions;
e. Hours of work and proportionate additional payment;
f. Rest days and allowable leaves;
g. Board, lodging and medical attention;
h. Agreements on deployment expenses, if any;
i. Loan agreement;
j. Termination of employment; and
k. Any other lawful condition agreed upon by both
parties.
The Department of Labor and Employment (DOLE) shall
develop a model employment contract for domestic workers
which shall, at all times, be made available free of charge to
domestic workers, employers, representative organizations
and the general public. The DOLE shall widely disseminate
information to domestic workers and employers on the use of
such model employment contract.
In cases where the employment of the domestic worker is
facilitated through a private employment agency, the PEA
shall keep a copy of all employment contracts of domestic
workers and shall be made available for verification and
inspection by the DOLE.
Section 12
Pre-Employment Requirement.
Prior to the execution of the employment contract, the
employer may require the following from the domestic worker:
a. Medical certificate or a health certificate issued by a
local government health officer;
b. Barangay and police clearance;
c. National Bureau of Investigation (NBI) clearance; and
d. Duly authenticated birth certificate or if not
available, any other document showing the age of
the domestic worker such as voter's identification
card, baptismal record or passport.
However, Section 12 (a), (b), (c) and (d) shall be standard
requirements when the employment of the domestic worker is
facilitated through the PEA.
The cost of the foregoing shall be borne by the prospective
employer or agency, as the case may be.
Section 13
Recruitment and Finder's Fees.
Regardless of whether the domestic worker was hired through
a private employment agency or a third party, no share in the
recruitment or finder's fees shall be charged against the
domestic worker by the said private employment agency or
third party.
Section 14
Deposits for Loss or Damage.
It shall be unlawful for the employer or any other person to
require a domestic worker to make deposits from which
deductions shall be made for the reimbursement of loss or
damage to tools, materials, furniture and equipment in the
household.
Section 15
Prohibition on Debt Bondage.
It shall be unlawful for the employer or any person acting on
behalf of the employer to place the domestic worker under
debt bondage.
Section 16
Employment Age of Domestic Workers.
It shall be unlawful to employ any person below fifteen (15)
years of age as a domestic worker. Employment of working
children, as defined under this Act, shall be subject to the
provisions of Section 10 (A), paragraph 2 of Section 12-A,
paragraph 4 of Section 12-D, and Section 13 of Republic Act
No. 7610, as amended, otherwise known as the "Special
Protection of Children Against Child Abuse, Exploitation and
Discrimination Act".
Working children shall be entitled to minimum wage, and all
benefits provided under this Act.
Any employer who has been sentenced by a court of law of
any offense against a working child under this Act shall be
meted out with a penalty one degree higher and shall be
prohibited from hiring a working child.
Section 17
Employer's Reportorial Duties.
The employers shall register all domestic workers under their
employment in the Registry of Domestic Workers in the
barangay where the employer's residence is located. The
Department of the Interior and Local Government (DILG) shall,
in coordination with the DOLE, formulate a registration system
for this purpose.
Section 18
Skills Training, Assessment and Certification.
To ensure productivity and assure quality services, the DOLE,
through the Technical Education and Skills Development
Authority (TESDA), shall facilitate access of domestic workers
to efficient training, assessment and certification based on a
duly promulgated training regulation.
Article IV
Employment Terms and Conditions
Section 19
Health and Safety.
The employer shall safeguard the health and safety of the
domestic worker in accordance with laws, rules and
regulations, with due consideration of the peculiar nature of
domestic work.
Section 20
Daily Rest Period.
The domestic worker shall be entitled to an aggregate daily
rest period of eight (8) hours per day.
Section 21
Weekly Rest Period.
The domestic worker shall be entitled to at least twenty-four
(24) consecutive hours of rest in a week. The employer and
the domestic worker shall agree in writing on the schedule of
the weekly rest day of the domestic worker: Provided, That
the employer shall respect the preference of the domestic
worker as to the weekly rest day when such preference is
based on religious grounds. Nothing in this provision shall
deprive the domestic worker and the employer from agreeing
to the following:
a. Offsetting a day of absence with a particular rest
day;
b. Waiving a particular rest day in return for an
equivalent daily rate of pay;
c. Accumulating rest days not exceeding five (5) days;
or
d. Other similar arrangements.
Section 22
Assignment to Nonhousehold Work.
No domestic worker shall be assigned to work in a
commercial, industrial or agricultural enterprise at a wage
rate lower than that provided for agricultural or
nonagricultural workers. In such cases, the domestic worker
shall be paid the applicable minimum wage.
Section 23
Extent of Duty.
The domestic worker and the employer may mutually agree
for the former to temporarily perform a task that is outside
the latter's household for the benefit of another household.
However, any liability that will be incurred by the domestic
worker on account of such arrangement shall be borne by the
original employer. In addition, such work performed outside
the household shall entitle the domestic worker to an
additional payment of not less than the existing minimum
wage rate of a domestic worker. It shall be unlawful for the
original employer to charge any amount from the said
household where the service of the domestic worker was
temporarily performed.
Section 24
Minimum Wage.
The minimum wage of domestic workers shall not be less than
the following:
a. Two thousand five hundred pesos (P2,500.00) a
month for those employed in the National Capital
Region (NCR);
b. Two thousand pesos (P2,000.00) a month for those
employed in chartered cities and first class
municipalities; and
c. One thousand five hundred pesos (P1,500.00) a
month for those employed in other municipalities.
After one (1) year from the effectivity of this Act, and
periodically thereafter, the Regional Tripartite and Productivity
Wage Boards (RTPWBs) shall review, and if proper, determine
and adjust the minimum wage rates of domestic workers.
Section 25
Payment of Wages.
Payment of wages shall be made on time directly to the
domestic worker to whom they are due in cash at least once a
month. The employer, unless allowed by the domestic worker
through a written consent, shall make no deductions from the
wages other than that which is mandated by law. No employer
shall pay the wages of a domestic worker by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or
any object other than the cash wage as provided for under
this Act.
The domestic worker is entitled to a thirteenth month pay as
provided for by law.
Section 26
Pay Slip.
The employer shall at all times provide the domestic worker
with a copy of the pay slip containing the amount paid in cash
every pay day, and indicating all deductions made, if any. The
copies of the pay slip shall be kept by the employer for a
period of three (3) years.
Section 27
Prohibition on Interference in the Disposal of Wages.
It shall be unlawful for the employer to interfere with the
freedom of any domestic worker to dispose of the latter's
wages. The employer shall not force, compel or oblige the
domestic worker to purchase merchandise, commodities or
other properties from the employer or from any other person,
or otherwise make use of any store or services of such
employer or any other person.
Section 28
Prohibition Against Withholding of Wages.
It shall be unlawful for an employer, directly or indirectly, to
withhold the wages of the domestic worker. If the domestic
worker leaves without any justifiable reason, any unpaid
salary for a period not exceeding fifteen (15) days shall be
forfeited. Likewise, the employer shall not induce the
domestic worker to give up any part of the wages by force,
stealth, intimidation, threat or by any other means
whatsoever.
Section 29
Leave Benefits.
A domestic worker who has rendered at least one (1) year of
service shall be entitled to an annual service incentive leave
of five (5) days with pay: Provided, That any unused portion of
said annual leave shall not be cumulative or carried over to
the succeeding years. Unused leaves shall not be convertible
to cash.
Section 30
Social and Other Benefits.
A domestic worker who has rendered at least one (1) month of
service shall be covered by the Social Security System (SSS),
the Philippine Health Insurance Corporation (PhilHealth), and
the Home Development Mutual Fund or Pag-IBIG, and shall be
entitled to all the benefits in accordance with the pertinent
provisions provided by law.
Premium payments or contributions shall be shouldered by
the employer. However, if the domestic worker is receiving a
wage of Five thousand pesos (P5,000.00) and above per
month, the domestic worker shall pay the proportionate share
in the premium payments or contributions, as provided by law.
The domestic worker shall be entitled to all other benefits
under existing laws.
Section 31
Rescue and Rehabilitation of Abused Domestic Workers.
Any abused or exploited domestic worker shall be
immediately rescued by a municipal or city social welfare
officer or a social welfare officer from the Department of
Social Welfare and Development (DSWD) in coordination with
the concerned barangay officials. The DSWD and the DILG
shall develop a standard operating procedure for the rescue
and rehabilitation of abused domestic workers, and in
coordination with the DOLE, for possible subsequent job
placement.
Article V
Post Employment
Section 32
Termination of Service.
Neither the domestic worker nor the employer may terminate
the contract before the expiration of the term except for
grounds provided for in Sections 33 and 34 of this Act. If the
domestic worker is unjustly dismissed, the domestic worker
shall be paid the compensation already earned plus the
equivalent of fifteen (15) days work by way of indemnity. If
the domestic worker leaves without justifiable reason, any
unpaid salary due not exceeding the equivalent fifteen (15)
days work shall be forfeited. In addition, the employer may
recover from the domestic worker costs incurred related to the
deployment expenses, if any: Provided, That the service has
been terminated within six (6) months from the domestic
worker's employment.
If the duration of the domestic service is not determined
either in stipulation or by the nature of the service, the
employer or the domestic worker may give notice to end the
working relationship five (5) days before the intended
termination of the service.
The domestic worker and the employer may mutually agree
upon written notice to pre-terminate the contract of
employment to end the employment relationship.
Section 33
Termination Initiated by the Domestic Worker.
The domestic worker may terminate the employment
relationship at any time before the expiration of the contract
for any of the following causes:
a. Verbal or emotional abuse of the domestic worker by
the employer or any member of the household;
b. Inhuman treatment including physical abuse of the
domestic worker by the employer or any member of
the household;
c. Commission of a crime or offense against the
domestic worker by the employer or any member of
the household;
d. Violation by the employer of the terms and
conditions of the employment contract and other
standards set forth under this law;
e. Any disease prejudicial to the health of the domestic
worker, the employer, or member/s of the household;
and
f. Other causes analogous to the foregoing.
Section 34
Termination Initiated by the Employer.
An employer may terminate the services of the domestic
worker at any time before the expiration of the contract for
any of the following causes:
a. Misconduct or willful disobedience by the domestic
worker of the lawful order of the employer in
connection with the former's work;
b. Gross or habitual neglect or inefficiency by the
domestic worker in the performance of duties;
c. Fraud or willful breach of the trust reposed by the
employer on the domestic worker;
d. Commission of a crime or offense by the domestic
worker against the person of the employer or any
immediate member of the employer's family;
e. Violation by the domestic worker of the terms and
conditions of the employment contract and other
standards set forth under this law;
f. Any disease prejudicial to the health of the domestic
worker, the employer, or member/s of the household;
and
g. Other causes analogous to the foregoing.
Section 35
Employment Certification.
Upon the severance of the employment relationship, the
employer shall issue the domestic worker within five (5) days
from request a certificate of employment indicating the
nature, duration of the service and work performance.
Article VI
Private Employment Agencies
Section 36
Regulation of Private Employment Agencies (PEAs).
The DOLE shall, through a system of licensing and regulation,
ensure the protection of domestic workers hired through the
PEAs.
The PEA shall be jointly and severally liable with the employer
for all the wages, wage-related benefits, and other benefits
due a domestic worker.
The provision of Presidential Decree No. 442, as amended,
otherwise known as the "Labor Code of the Philippines", on
qualifications of the PEAs with regard to nationality, networth,
owners and officers, office space and other requirements, as
well as nontransferability of license and commission of
prohibited practices, shall apply.
In addition, PEAs shall have the following responsibilities:
a. Ensure that domestic workers are not charged or
levied any recruitment or placement fees;
b. Ensure that the employment agreement between the
domestic worker and the employer stipulates the
terms and conditions of employment and all the
benefits prescribed by this Act;
c. Provide a pre-employment orientation briefing to the
domestic worker and the employer about their rights
and responsibilities in accordance with this Act;
d. Keep copies of employment contracts and
agreements pertaining to recruited domestic workers
which shall be made available during inspections or
whenever required by the DOLE or local government
officials;
e. Assist domestic workers with respect to complaints or
grievances against their employers; and
f. Cooperate with government agencies in rescue
operations involving abused or exploited domestic
workers.
Article VII

Settlement of Disputes
Section 37
Mechanism for Settlement of Disputes.
All labor-related disputes shall be elevated to the DOLE
Regional Office having jurisdiction over the workplace without
prejudice to the filing of a civil or criminal action in
appropriate cases. The DOLE Regional Office shall exhaust all
conciliation and mediation efforts before a decision shall be
rendered.
Ordinary crimes or offenses committed under the Revised
Penal Code and other special penal laws by either party shall
be filed with the regular courts.
Article VIII
Special Provisions
Section 38
Information Program.
The DOLE shall, in coordination with the DILG, the SSS, the
PhilHealth and Pag-IBIG develop and implement a continuous
information dissemination program on the provisions of this
Act, both at the national and local level, immediately after the
enactment of this law.
Section 39
"Araw ng mga Kasambahay".
The date upon which the President shall approve this
"Domestic Workers Act" shall be designated as the "Araw ng
mga Kasambahay".
Article IX
Penal and Miscellaneous Provisions
Section 40
Penalty.
Any violation of the provisions of this Act declared unlawful
shall be punishable with a fine of not less than Ten thousand
pesos (P10,000.00) but not more than Forty thousand pesos
(P40,000.00) without prejudice to the filing of appropriate civil
or criminal action by the aggrieved party.
Section 41. Transitory Provision; Non-Diminution of Benefits.
All existing arrangements between a domestic worker and the
employer shall be adjusted to conform to the minimum
standards set by this Act within a period of sixty (60) days
after the effectivity of this Act: Provided, That adjustments
pertaining to wages shall take effect immediately after the
determination and issuance of the appropriate wage order by
the RTWPBs: Provided, further, That nothing in this Act shall
be construed to cause the diminution or substitution of any
benefits and privileges currently enjoyed by the domestic
worker hired directly or through an agency.