WORKER PREFERENCE IN CASE OF BANKRUPTCY 3.

Claims of laborers, masons, mechanics and other workmen, as well

as of architects, engineers and contractors, engaged in the construction,
reconstruction or repair of buildings, canals or other works, upon said
buildings, canals or other works;

CIVIL CODE 4. Claims of furnishers of materials used in the construction,

reconstruction, or repair of buildings, canals or other works, upon said
buildings, canals or other works;
Article 2241. With reference to specific movable property of the debtor, the
following claims or liens shall be preferred:
5. Mortgage credits recorded in the Registry of Property, upon the real
estate mortgaged;
1. Duties, taxes and fees due thereon to the State or any subdivision
thereof;
6. Expenses for the preservation or improvement of real property when
the law authorizes reimbursement, upon the immovable preserved or
2. Claims arising from misappropriation, breach of trust, or malfeasance
improved;
by public officials committed in the performance of their duties, on the
movables, money or securities obtained by them;
7. Credits annotated in the Registry of Property, in virtue of a judicial
order, by attachments or executions, upon the property affected, and only
3. Claims for the unpaid price of movables sold, on said movables, so
as to later credits;
long as they are in the possession of the debtor, up to the value of the
same; and if the movable has been resold by the debtor and the price is
still unpaid, the lien may be enforced on the price; this right is not lost by 8. Claims of co-heirs for warranty in the partition of an immovable
the immobilization of the thing by destination, provided it has not lost its among them, upon the real property thus divided;
form, substance and identity; neither is the right lost by the sale of the
thing together with other property for a lump sum, when the price thereof
can be determined proportionally; 9. Claims of donors or real property for pecuniary charges or other
conditions imposed upon the donee, upon the immovable donated;

4. Credits guaranteed with a pledge so long as the things pledged are in

the hands of the creditor, or those guaranteed by a chattel mortgage, 10. Credits of insurers, upon the property insured, for the insurance
upon the things pledged or mortgaged, up to the value thereof; premium for two years.

5. Credits for the making, repair, safekeeping or preservation of Article 2243. The claims or credits enumerated in the two preceding articles shall
personal property, on the movable thus made, repaired, kept or possessed; be considered as mortgages or pledges of real or personal property, or liens
within the purview of legal provisions governing insolvency. Taxes mentioned in
No. 1, article 2241, and No. 1, article 2242, shall first be satisfied.
6. Claims for laborers wages, on the goods manufactured or the work
done;

7. For expenses of salvage, upon the goods salvaged;

Article 2244. With reference to other property, real and personal, of the debtor,
the following claims or credits shall be preferred in the order named:
8. Credits between the landlord and the tenant, arising from the
contract of tenancy on shares, on the share of each in the fruits or harvest;
1. Proper funeral expenses for the debtor, or children under his or her
parental authority who have no property of their own, when approved by
9. Credits for transportation, upon the goods carried, for the price of the court;
the contract and incidental expenses, until their delivery and for thirty days
thereafter;
2. Credits for services rendered the insolvent by employees, laborers, or
household helpers for one year preceding the commencement of the
10. Credits for lodging and supplies usually furnished to travellers by proceedings in insolvency;
hotel keepers, on the movables belonging to the guest as long as such
movables are in the hotel, but not for money loaned to the guests;
3. Expenses during the last illness of the debtor or of his or her spouse
and children under his or her parental authority, if they have no property of
11. Credits for seeds and expenses for cultivation and harvest advanced their own;
to the debtor, upon the fruits harvested;

4. Compensation due the laborers or their dependents under laws

12. Credits for rent for one year, upon the personal property of the lessee providing for indemnity for damages in cases of labor accident, or illness
existing on the immovable leased and on the fruits of the same, but not on resulting from the nature of the employment;
money or instruments of credit;

5. Credits and advancements made to the debtor for support of himself

13. Claims in favor of the depositor if the depositary has wrongfully sold or herself, and family, during the last year preceding the insolvency;
the thing deposited, upon the price of the sale.

6. Support during the insolvency proceedings, and for three months

In the foregoing cases, if the movables to which the lien or preference thereafter;
attaches have been wrongfully taken, the creditor may demand them from any
possessor, within thirty days from the unlawful seizure.
7. Fines and civil indemnification arising from a criminal offense;

8. Legal expenses, and expenses incurred in the administration of the

insolvents estate for the common interest of the creditors, when properly
Article 2242. With reference to specific immovable property and real rights of authorized and approved by the court;
the debtor, the following claims, mortgages and liens shall be preferred, and
shall constitute an encumbrance on the immovable or real right:
9. Taxes and assessments due the national government, other than
those mentioned in articles 2241, No. 1, and 2242, No. 1;
1. Taxes due upon the land or building;

10. Taxes and assessments due any province, other than those referred to
2. For the unpaid price of real property sold, upon the immovable sold; in articles 2241, No. 1, and 2242, No. 1;
11. Taxes and assessments due any city or municipality, other than those
indicated in articles 2241, No. 1, and 2242, No. 1;
12. Damages for death or personal injuries caused by a quasi-delict;
13. Gifts due to public and private institutions of charity or beneficence;
14. Credits which, without special privilege, appear in (a) a public
instrument; or (b) in a final judgment, if they have been the subject of
litigation. These credits shall have preference among themselves in the
order of priority of the dates of the instruments and of the judgments,
respectively.
NON-INTERFERENCE IN WAGE DISPOSAL
CIVIL CODE
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.
REVISED PENAL CODE
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.
WAGE STUDIES, AGREEMENTS, DETERMINATION
RA 6727, IRR
REPUBLIC ACT NO. 8188
AN ACT INCREASING THE PENALTY AND INCREASING DOUBLE INDEMNITY FOR
VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN THE WAGE
RATES, AMENDING FOR THE PURPOSE SECTION TWELVE OF REPUBLIC ACT
NUMBERED SIXTY-SEVEN HUNDRED TWENTY-SEVEN, OTHERWISE KNOWN AS
THE WAGE RATIONALIZATION ACT
SECTION 1. Section 12 of Republic Act No. 6727 is hereby amended to read to
as follows:
"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."
REPUBLIC ACT No. 7877
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE EMPLOYMENT,
EDUCATION OR TRAINING ENVIRONMENT, AND FOR OTHER PURPOSES.
Section 1. Title. - This Act shall be known as the "Anti-Sexual Harassment Act of
1995."
Section 2. Declaration of Policy. - The State shall value the dignity of every
individual, enhance the development of its human resources, guarantee full
respect for human rights, and uphold the dignity of workers, employees,
applicants for employment, students or those undergoing training, instruction or
education. Towards this end, all forms of sexual harassment in the employment,
education or training environment are hereby declared unlawful.
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
of 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 ordiminish 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
consideration; 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 Training 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
joint1y 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, 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. - The employer or head of office, educational or training institution
shall be solidarily liable for damages arising from the acts of sexual harassment
committed in the employment, education or training environment if the
employer or head of office, educational or training institution is informed of
such acts by the offended party and no immediate action is taken.
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.