Labor Standards Study Guide

Melicor, Ruth F.
UP College of Law (D2019)

For we dont live for ourselves or die for ourselves,

if we live its to honor God and if we die its to honor God.
So whether we live or die, we honor God.
Labor Standards Study Guide Melicor (D2019)

WHAT IS LABOR LEGISLATION?

Statutes, regulations and jurisprudence governing the relations between capital and labor by providing for
certain employment standards and a legal framework for negotiating, adjusting, and administering those
standards and other incidents of employment.

It is classified into: (1) Labor Standards (2) Labor Relations and (3) Social Legislation (benefits received from
the State due to certain contributions made)

DIFFERENTIATE LABOR STANDARDS FROM LABOR RELATIONS.

Labor Standards provide the minimum terms and conditions of employment that employers must comply with
and to which employees are entitled to as a matter of legal right.

Labor Relations defines the statutes, rights, duties, and institutional mechanism the govern the individual and
collective interaction of employees, employers, and their representatives.

Labor Standards is the material or substance, while Labor Relations is the institutional mechanism that
process the substance. They often overlap in reality.

WHAT IS THE JUSTIFICATION OF LABOR LEGISLATION? WHAT IS THE FOUNDATION?

The justification of Labor Legislation is Social Justice. Humanization of laws and equalization of social and
economic forces by the State so that justice in its rational and secular sense may at least be approximated. It
is the greatest good for the greatest number. (Calalang vs. Williams)

The foundation is police power and state protection.

WHEN CAN SEPARATION PAY BE GRANTED AS A MEASURE OF SOCIAL JUSTICE?

Separation pay can be granted as a measure of social justice if an employee is validly dismissed for causes
other than: (1) serious misconduct or (2) anything reflecting adversely on his moral character.
*social justice cannot be used to reward wrongdoers

WHAT IS ART XIII, SEC III OF THE CONSTITUTION?

The State shall afford full protection to labor, local and overseas, organised and unorganized, and promote
full employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organisation, collective bargaining and negotiation, and
peaceful concerted activities including the right to strike in accordance with law. They shall be entitled to
security of tenure, human 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 of settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial growth.

The State shall regulation the relations between workers and employers, recognising the right of labor to its
just share in the fruits of production and the right of enterprise to reasonable returns on investment, and to
expansion, and growth.

WHEN DOES A BONUS GIVEN IN THE PAST BECOME A MATTER OF RIGHT?

For a bonus to be enforceable it must be expressly agreed upon or a fixed amount that has ripened into
regular practice.
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WHAT IS THE HISTORY OF THE LABOR CODE?

Drafting began in 1968, under the direction of Blas Ople (known as the Father of the Labor Code). It was
ratified by the National Tripartite Congress on May 1, 1973. Went through several revisions. Signed into law
on May 1, 1974. Took effect November 1, 1974.

*based on the Wagner Act/ Taft-Hartley Act.

WHAT ARE THE PRINCIPLES UNDERLYING THE LABOR CODE?

(1) Labor relations must be made both responsive and responsible to national development
(2) Labor laws or labor relations during a period of national emergency must substitute rationality for
confrontation; therefore, strikes or lockouts give away to a rational process which is arbitration.
(3) Laggard justice in the labor feel is injurious to the workers, the employers, and the public; labor justice
may be made expeditious without sacrificing due process
(4) Manpower development and employment must be regarded as a major dimension of labor policy, for
there can be no real equality of bargaining power under conditions of severe mass unemployment.
(5) There is a global labor market available to qualified Filipinos, especially those who are unemployed or
whose employment is tantamount to unemployment because of little earnings
(6) Labor Laws must common adequate resources and acquire capable machinery for effective and
sustained implementation; otherwise they merely breed resentment not only of the workers but also of
the employers.
(7) There should be popular participation in national policy-making through what is now called tripartism.

HOW SHOULD LABOR LAWS BE CONSTRUED?

According to Art 4 of the Labor Code, all doubts in the implementation and interpretation of the Code
including its IRR should be resolved in favour of Labor. (This also applies to appreciation of evidence).

*This is because employer already stands in higher footing due to (1) greater demand than supply for labor
and (2) need for employment comes from desperate necessity.

DO RULES OF EVIDENCE PREVAIL IN PROCEEDINGS BEFORE LA/NLRC?

No. The rules of evidence in the court of law are not controlling. Labor Arbiters and the Commission are to
use ever and all reasonable means to ascertain the facts of each case speedily and objectively without
regard to technicalities of law or procedure, in the interest of substantial justice.

ARE ALL GOVERNMENT WORKERS NOT SUBJECT TO THE LABOR CODE?

No. GOCCs organised under the Corporation Code are subject to the Labor Code.

WHAT IS THE JURISDICTION OF THE LABOR ARBITER?

(1) Unfair Labor Practice
(2) Termination Disputes
(3) If accompanied with claim a for reinstatement, those cases that workers may file involving wages, rates
of pay, hours of work, and other terms of conditions of employment.
(4) Claims for actual, moral, and exemplary and other forms of damages arising from the employer-
employee relationship.
(5) Claims arising from any violation of Art 264 of this Code, including questions involving the legality of
strikes and lockouts.
(6) Except claims for Employees Compensation, Social Security, Medicare, and maternity benefits, all other
claims arising from employer-employee relations including those persons in domestic or household
service, involving an amount exceeding 5,000 pesos regardless of whether accompanied for claim of
reinstatement.
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WHAT IF DISMISSAL AROSE FROM THE INTERPRETATION OF CBA OR OF COMPANY

POLICIES?
This is not under jurisdiction of the Labor Arbiter, such shall be under jurisdiction of Voluntary Arbitration
under NCMB.

WHAT IS THE DIFFERENCE BETWEEN ART 128 AND 129?

128 129

Person Involved SOLE or duly authorized Regional Director or duly

representative authorized hearing officers

Nature Inspection and Investigation of Summary Proceeding to hear and

compliance with rules of Code. decide any matter involving
May issue compliance order/ recovery of wages and other
stoppage of work order. monetary claims.

Trigger Motu propio or upon complaint Upon complaint only

Presence of EER Present EER only Past and Present EER

Appeal SOLE NLRC

Other things to Note (1) Joint Assessment There should be no claim for
(2) Compliance Visit reinstatement and individual
(3) Occupational Safety and amount should not exceed 5,000.
Standards Investigation

IN THE CASE OF ISSUING COMPLIANCE ORDER IN ART 128, MAY THE SOLE HIMSELF
DETERMINE EXISTENCE OF EER?
Yes. The SOLE is empowered to make his own determination of NLRC. To rule otherwise would make it very
easy for others to allege lack of EER to divest SOLE of jurisdiction. The power of 128 is parallel and not
subordinate to that of NLRC. If no EER then case goes to NLRC.

WHICH BODY HAS JURISDICTION TO TRY INTRA-CORPORATE DISPUTES?

RTC

WHAT IS THE PERIOD OF PRESCRIPTION FOR OFFENSES PENALIZED UNDER THE

LABOR CODE?
3 years, but in case of unfair labor practice is should be filed within 1 year. Period of prescription for money
claims is also 3 years.

WHAT IS THE FOUR FOLD TEST? WHICH IS THE MOST IMPORTANT?

(1) selection and engagement of the employee
(2) payment of wages
(3) power of dismissal
(4) power of control < most important of the four.

WHAT QUANTUM OF EVIDENCE IS NEEDED TO ESTABLISH EER? WHO HAS BURDEN OF

PROOF?
EER should be established through substantial evidence. Employee has burden of proof. Whoever claims
entitlement to the benefits provided by law should establish his or her right thereto.

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WHAT IS THE PRINCIPLE OF PIERCING THE VEIL OF CORPORATE ENTITY? WHEN DOES
IT APPLY?
It is a principle that mandates the court to see through the protective shroud that distinguishes one
corporation from a seemingly separate one, when one is the alter ego of the other.

It applies when the seemingly separate corporations :

(1) defeat public convenience and evade obligations
(2) for purposes of fraud, to justify wrong, or to defend crime
(3) alter ego cases where one is a mere instrumentality of the other.

*The separate character continues for other legitimate purposes.

WHAT IS THE TRILATERAL RELATIONSHIP?

It is the relationship is contacting 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 parties involved:

(1) the Principal who decides to farm out the J/W/S
(2) the Contractor who has the capacity to independently undertake the performance of the J/W/S
(3) the Contractual Workers engaged by the contractor to accomplish the J/W/S

WHAT HAPPENS WHEN THE CONTRACTOR FAILS TO PAY WAGES?

There exists a solidary liability on the part of the principal and the contractor for purposes of enforcing
provisions of this Code to the extent of the work performance under the service agreement.

WHAT IF THERE IS A FINDING OF LABOR ONLY CONTRACTING OR COMMISSION OF

PROHIBITED ACTIVITIES?
The principal shall be deemed the direct employer of the workers and the contractor is a mere agent. The
principal and contractor are solidarily liable to the employees, in the same manner and extent that the
principal is liable to the employees directly hired by him.

WHAT IS THE FORMULA FOR NET FINANCIAL CONTRACTING CAPACITY? WHAT IS ITS
RELEVANCE?
Net Financial Contracting Capacity = [Current Asset - Current Liability (k)] - outstanding projects.
k = 15 (<= 1 year), 20 (1 year to 2 years), 25 (more than 2 years). NFC should be greater or equal to cost of
contract.

WHAT ARE THE REQUIREMENTS FOR LEGITIMATE JOB CONTRACTING?

(1) The contractor must be registered in accordance with the rules and carries a distinct and independent
business and undertakes to perform a job, work, or service 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.
(2) The contractor has substantial capital and/or investment in the form of tools and equipment actually and
directly used in the work performed
(3) The Service Agreement ensures compliance with all the rights and benefits under labor laws.

IS LABOR ONLY CONTRACTING PROHIBITED BY THE LABOR CODE?

No. The Labor Cody only provides that the Secretary of Labor may prohibit it. It is prohibited by D.O. 18-A-11

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WHEN IS ONE CONSIDERED A LABOR ONLY CONTRACTOR?

Arrangment is merely to recruit, supply, and place workers to perform a job work or service for a principal
where there is:
(1) Lack of substantial capital or investment and employees 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
(2) Contractor does not have right to control over the performance of the work of the employee.

WHAT IS THE PRESUMPTION? LOC OR LJC?

LOC.

WHAT IS THE EFFECT OF FAILURE TO REGISTER?

Creates the presumption that it is LOC.

WHERE SHOULD ONE FILE FOR REGISTRATION?

Regional Office of the DOLE where it principally operates.

WHAT ARE THE OTHER PROHIBITIONS IN CONTRACTING?

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 ordifferent 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).
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(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).

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.

SUPPOSE AN INDEPENDENT CONTRACTOR FAILS TO PAY THE NEW WAGE RATE DUE TO
FAILURE OF PRINCIPAL TO ADJUST CONSIDERATION, WHO ARE LIABLE? WHO CAN ASK
REIMBURSEMENT FROM WHO?
Principal and contractor are solidarily liable for the wage differential. If contractor pays, he may ask
reimbursement from principal, if principal pays he cannot ask reimbursement from contractor.

DO WAIVERS, QUITCLAIMS, AND RELEASES EXECUTED IN FAVOUR OR LOC, REDOUND

TO BENEFIT OF PRINCIPAL?
Yes. Since they are solidarily liability, the liabilities are extinguished.

WHERE MAY OFWS BE DEPLOYED?

Only in countries where the rights of Filipino migrant workers are protected. The ff are guarantees for
protection:
(a) existing labor and social laws protecting rights of workers, including migrant workers;
(b) signatory to and/or ratifier of multilateral conventions, declarations, or resolutions relating to the
protection of workers, including migrant workers.
(c) concluded a bilateral agreement or arrangement with the government on the protection of the rights of
OFWs

WHEN MAY POEA TERMINATE OR IMPOSE A BAN ON DEPLOYMENT OF MIGRANT

WORKERS?
In pursuit of national interest or when public welfare so requires, after consultation with the DFA.

WHAT LAWS APPLY TO OVERSEAS EMPLOYMENT CONTRACTS? WHEN MAY FOREIGN

LAWS GOVERN.
Philippine laws apply to overseas employment contracts. Foreign laws may govern if the ff. requisites are
met:
(1) it is expressly stipulated in the overseas employment contract that a foreign law will govern.
(2) the foreign law is proven before the courts pursuant to PH rules of evidence.
(3) foreign law must not be contrary to law, morals, good customs, public order, public policy
(4) overseas employment contract must be processed through POEA.

WHAT IS THE DIFFERENCE BETWEEN A PRIVATE EMPLOYMENT AGENCY AND AN

PRIVATE RECRUITMENT ENTITY?
Private employment agency Private recruitment entity

Fee charging Non-fee charging; hired for own business to be

deployed to other branches.

*directly or indirectly from the worker or employers

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WHAT IS THE RULE ON DIRECT HIRING OF OFWS?

GR: No direct hiring allowed
Ex:
(1) members of the diplomatic corps
(2) international organisations
(3) heads of state or government officials with a rank of at least deputy minister
(4) those allowed by the Sec of Labor
(i) those provided in a, b, and c who bear a lesser rank if endorsed by the Philippine Overseas Labor
Office or Head of MIssion, in the absence of POLO
(ii) Professionals or skilled workers with duly executed/authenticated contracts containing terms and
conditions over and above the standards set by the POE. The number of OFWs hired for the first
time by the employer shall not exceed 5. For the purposes of determining the number, workers hired
as groups shall be counted as one.
(iii) Workers hired by a relative//family member who is a permanent resident of the host country.

WHO MAY INITIATE THE CRIMINAL ACTION FOR ILLEGAL RECRUITMENT?

(1) Sec of Labor
(2) POEA Administrator or their duly authorized representatives
(3) any aggrieved person

WHO IS QUALIFIED TO PARTICIPATE IN RECRUITMENT OF FILIPINO WORKERS FOR

LOCALLY OR OVERSEAS?
(1) Filipino citizen (if sole proprietorship or partnership) or 75% f authorized and voting capital stock owned
and controlled by Filipino citizen (if corporation)
(2) Minimum capitalization of P5,000,000pesos

WHO ARE DISQUALIFIED FROM PARTICIPATING IN RECRUITMENT OF OFWS?

(a) Travel agencies and sales agencies of airline companies;
(b) Officers or members of the Board of any corporation or partners in a partnership engaged in the business
of a travel agency;
(c) Corporations and partnerships, where any of its officers, members of the board or partners is also an
officer, member of the board or partner of a corporation or partnership engaged in the business of a travel
agency;
(d) Individuals, partners, officers or directors of an insurance company who make, propose or provide an
insurance contract under the compulsory insurance coverage for agency-hired Overseas Filipino Workers;
(e) Sole proprietors, partners or officers and members of the board with derogatory records, such as, but not
limited to the following:
1. Those convicted, or against whom probable cause or prima facie finding of guilt is determined by a
competent authority, for illegal recruitment, or for other related crimes or offenses committed in the
course of, related to, or resulting from, illegal recruitment, or for crimes involving moral turpitude;
2. Those agencies whose licenses have been revoked for violation of RA 8042 (Migrant Workers and
Overseas Filipinos Act of 1995), as amended, PD 442 (Labor Code of the Philippines), as amended, and
RA 9208 (Trafficking in Persons Act of 2003), as amended, and their implementing rules and regulations;
3. Those agencies whose licenses have been cancelled, or those who, pursuant to the Order of the
Administrator, were included in the list of persons with derogatory record for violation of recruitment laws
and regulations; and
(f) Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBI,
PNP, Civil Aviation Authority of the Philippines (CAAP), international airport authorities, and other
government agencies directly involved in the implementation of RA 8042, as amended, and/or any of his/her
relatives within the fourth civil degree of consanguinity or affinity.
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IS THE LICENSE TRANSFERABLE? MAY IT BE USED IN ANOTHER PLACE?

No.

WHAT HAPPENS AFTER SUBMISSION OF POST-QUALIFICATIONS?

A provisional license will be issued within 5 working days.

WHAT IS THE VALIDITY OF THE PROVISIONAL LICENSE?

2 years from date of issuance.

WHEN WILL THE REGULAR LICENSE BE ISSUED? WHAT IS ITS VALIDITY? WHEN SHOULD
THE APPLICATION BE FILED?
Upon application, a provisional license will be upgraded to a regular license at any time during its validity
upon deployment of 100 workers to its new principals. It shall be valid for 4 years from date of issuance of
the provisional license. Application should be filed 3 months before expiration of provisional license.

WHAT HAPPENS IF SOLE PROPRIETOR DIES?

License shall be automatically revoked upon death. next-in-rank must within 10 days report such death, or
else shall be included in list of persons with a derogatory record.

WHAT HAPPENS IS PARTNER DIES/WITHRAWS?

License of partnership shall be automatically revoked. Withdrawal must materially interrupt the course of
business or result in actual dissolution of the partnership.

MAY LICENSED RECRUITMENT AGENCIES, UPGRADE, MERGE, OR CONSOLIDATE?

Yes, pursuant to SEC rules.

WHAT HAPPENS IF THERE IS ACHING IN THE COMPOSITION OF PARTNERS/BOR?

Administration should be informed of every change in the composition within 30 calendar days.

WHEN MAY A WORKER APPLYING WITH A PRIVATE FEE CHARGING EMPLOYMENT

AGENCY BE CHARGED A FEE?
When he has obtained employment through its efforts or has actually commenced employment.

HOW MUCH SHOULD THE PLACEMENT FEE BE WORTH? WHO IS EXEMPT?

Equivalent to 1 month basic salary under POEA approved contract. Domestic workers and workers who are
to be deployed to countries who do not allow the charging or collecting of recruitment fees are exempt.

WHO BEARS COSTS OF RECRUITMENT AND IS RESPONSIBLE FOR PAYMENT OF

INSURANCE PREMIUM?
Employer.

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WHAT CONSTITUTES ILLEGAL RECRUITMENT IN LOCAL EMPLOYMENT? OVERSEAS

EMPLOYMENT?
Local Overseas

L/HA NL/NH L/HA NL/NH

Recruitment/ X X
Placement

Prohibited X X X (Art 34-1+3) = SEC 6* X

Activites

Prohibited Acts +7 (Sec 6) +7 (Sec 6)

Economic
Sabotage

Penalty Art 39 (refer to Art 39 (refer to Art 7 of RA 8042 Art 7 of RA 8043**

previous table) previous table)

WHEN IS IT CONSIDERED ECONOMIC SABOTAGE?

If committed in large scale or as a syndicate. It is in large scale if committed against 3 or more persons
individually or as a group. It is committed by a syndicate if carried out by a group of 3 or more persons
conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction.

WHAT ARE THE PROHIBITED ACTIVITIES FOR LOCAL ILLEGAL RECRUITMENT?

(a) To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater than
that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of misrepresentation
for the purpose of securing a license or authority under this Code;
(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him
to another unless the transfer is designed to liberate the worker from oppressive terms and conditions of
employment;
(e) To influence or to attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to
the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;
(h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may be
required by the Secretary of Labor;
(i) To substitute or alter employment contracts approved and verified by the Department of Labor from
the time of actual signing thereof by the parties up to and including the periods of expiration of the same
without the approval of the Secretary of Labor;
(j) To become an officer or member of the Board of any corporation engaged in travel agency or to be
engaged directly or indirectly in the management of a travel agency; and
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules and
regulations.

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WHAT ARE THE PROHIBITED ACTS FOR OVERSEAS ILLEGAL RECRUITMENT?

(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of misrepresentation
for the purpose of securing a license or authority under the Labor Code, or for the purpose of
documenting hired workers with the POEA, which include the act of reprocessing workers through a job
order that pertains to nonexistent work, work different from the actual overseas work, or work with a
different employer whether registered or not with the POEA;
(d) To include or attempt to induce a worker already employed to quit his employment in order to offer
him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency or who has formed, joined or supported, or has contacted or
is supported by any union or workers' organization;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to
the dignity of the Republic of the Philippines;
(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by
the Department of Labor and Employment from the time of actual signing thereof by the parties up to and
including the period of the expiration of the same without the approval of the Department of Labor and
Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the
Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the
management of travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations, or for any other reasons, other than those authorized under the Labor Code and
its implementing rules and regulations;
(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department
of Labor and Employment;
(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place
without the worker's fault. Illegal recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage; and
(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

WHAT ARE THE ADDT PROHIBITED ACTS FOR OVERSEAS ILLEGAL RECRUITMENT?
(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent (8%) per annum,
which will be used for payment of legal and allowable placement fees and make the migrant worker
issue, either personally or through a guarantor or accommodation party, postdated checks in relation to
the said loan;
(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to
avail of a loan only from specifically designated institutions, entities or persons;
(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker after the latter's
employment contract has been prematurely terminated through no fault of his or her own;

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(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to
undergo health examinations only from specifically designated medical clinics, institutions, entities or
persons, except in the case of a seafarer whose medical examination cost is shouldered by the principal/
shipowner;
(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to
undergo training, seminar, instruction or schooling of any kind only from specifically designated
institutions, entities or persons, except for recommendatory trainings mandated by principals/shipowners
where the latter shoulder the cost of such trainings;
(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity including
the processing of pending workers' applications; and
(7) For a recruitment/manning agency or a foreign principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment of the cost of insurance fees, premium or other
insurance related charges, as provided under the compulsory worker's insurance coverage.

WHAT IS THE VENUE FOR CRIMINAL ACTION ARISING FROM ILLEGAL RECRUITMENT?
RTC of the province of city where the offense was committed or where the offended party actually resides at
the same time of the commission of the offense.

WHAT IS THE PERIOD OF PRESCRIPTION FOR ILLEGAL RECRUITMENT? WHAT

IF IT INVOLVES ECONOMIC SABOTAGE?
Illegal Recruitment prescribes in 5 years, however if it involves economic sabotage it prescribes in 20 years.

WHAT IS DEEMED INTEGRATED IN EVER CONTRACT OF OVERSEAS EMPLOYMENT?

POEA Standard Employment Contracts terms and conditions. They are also liberally construed in favour of
the worker.

WHO HAS JURISDICTION TO HEAR MONEY CLAIMS/DAMAGES OF OWS?

Labor Arbiter (decide within 90 days). POEA jurisdiction limited to administrative and disciplinary cases.

DOES NLRC HAVE APPELLATE JURISDICTION TO REVIEW POEA DECISION?

No. SOLE has appellate jurisdiction.

WHAT DO NON-RESIDENT ALIENS NEED IN ORDER TO BE EMPLOYED IN THE PH?

Alien Employment Permit.

MAY AN ALIEN TRANSFER TO ANOTHER JOB OR CHANGE HIS EMPLOYER?

No. needs prior approval of SOLE.

WHAT IS THE DURATION OF THE EMPLOYMENT PERMIT?

Minimum period of 1 year from date of issuance unless sooner revoked.
WHO ARE EXEMPT FROM SECURING AN AEP?
(a) All members of diplomatic service and foreign government officials accredited by and w/ reciprocity
arrangement with the Philippine government.
(b) Officers and staff of international organisations of which the Philippine government is a member and their
legitimate spouses desiring to work in the Philippines.
(c) All foreign nationals granted exception by law.
(d) Owners and representatives of foreign principals whose companies are accredited by the POEA, who
come to the Philippines for a limited period and solely for the purpose of interviewing Filipino applicants for
employment abroad.

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(e) Foreign nationals who come to the Philippines to teach, present, and/or conduct research studies in
universities and colleges as visiting, exchange, or adjunct professors under formal agreements between the
universities or colleges in the Philippines and foreign universities or colleges, or between the Philippine and
foreign government: provided that the exemption is on a reciprocal basis.
(f) Permanent resident foreign nationals and probationary or temporary resident visa holders under Sec 13 of
the Philippine Immigration Act of 1940.

WHO ARE EXCLUDED FROM SECURING AN AEP?

(a) Members of the governing board with voting rights and do not intervene in the management of the
corporation or in the day to day operation of the enterprise
(b) Corporate officers as provided under the Corporation Code of the Philippines, Articles of Incorporation,
and By-Laws of the Corporation such as President, Secretary, and Treasurer.
(c) Those providing consultancy services who do not have employers in the Philippines
(d) Intra corporate transferee who is a manager, executive, or specialist, as defined below in accordance
with trade agreements and an employee of the foreign service supplier for at least one year prior to the
deployment to a branch, subsidiary, affiliate or representative office in the Philippines.
(i) an executive: a natural person within the organization who primarily directs the management of the
organisation and exercises wide latitude in decision making and receives only general supervision or
direction from higher level executives, the board of directors, or stockholders of the business; an
executive would not directly perform tasks related to the actual provision of the service or services of
the organization.
(ii) a manager: a natural person within the organization who primarily directs the organization/
department/subdivision or exercises supervisory and control function over other supervisory,
managerial, or professional staff; does not include first line supervisors, unless employees
supervised are professionals; does not include employees who primarily perform tasks necessary for
the provision of the service.
(iii) a specialist: a natural person within the organisation who possesses knowledge, at an advanced
level of expertise essential to the establishment/provision of the service and/or possesses proprietary
knowledge of the organisations service, research equipment, techniques or management; may
include but is not limited to, members of a licensed profession.
(e) contractual service supplies who is a manager, executive, or specialist and an employee of a foreign
service supplier which has no commercial presence in the Philippines:
(i) who enters the Philippines temporarily to supply a service pursuant to a contract between his/her
employer and a service consumer in the Philippines
(ii) must possess the appropriate educational and professional qualification;
(iii) must be employed by the foreign service supplier for at least one year prior to the supply of service in
the Philippines

WHAT ARE THE GROUNDS FOR DENIAL OF AEP?

(1) misrepresentation of facts in the application
(2) submission of falsified documents
(3) foreign national has been convicted of a criminal offense or a fugitive from justice in the country or
abroad
(4) grave misconduct in dealing with or ill treatment of workers
(5) availability of a Filipino who is competent, able, and willing to do the job intended for or being performed
by the foreign national

IF APPLICATION IS DENIED, WHAT WILL HAPPEN TO THE FEES?

Forfeited
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WHAT ARE THE GROUNDS FOR CANCELLATION OF AEP?

(1)non-compliance with any of the requirement or conditions for which the AEP was issued
(2)misrepresentation of facts in the application
(3)submission of falsified or tampered documents
(4)meritorious objection of information against the employment of the foreign national
(5)foreign national has been convicted of a criminal offense or a fugitive from justice
(6)employer terminated the employment of the foreign national
(7)grave misconduct in dealing with or ill treatment of workers
(8)disapproval of the application for an Authority to Employ Alien by the DOJ or Special Temporary Permit
by PRC, if applicable.
*Should still be after due process.

WHAT ARE THE GROUNDS FOR DENIAL OR CANCELLATION THAT WOULD RESULT TO
DISQUALIFICATION FOR 10 YEARS?
(1) conviction of a criminal offense or fugitive from justice in the country or abroad
(2) grave misconduct in dealing with or ill treatment of workers

WHAT IS THE LABOR MARKET TEST?

DOLE shall publish in a newspaper of general circulation all applications for new AEP, change or additional
position in the same company or subsequent assignment in related companies within 2 work days from
receipt of application. (also published in the DOLE website and PESO)

Such publication shall be for a period of 30 days and shall contain the name, position, employer and
address, a brief description of the functions to be performed by the foreign national, qualifications, monthly
salary range, and other benefits, if any.

It shall indicate that any person in the Philippines who is competent, able and willing (CAW) at time of
application to perform the services for which the foreign national is desired may file an objection at the DOLE
Regional Office.

Any objection must be filed at Regional Office within 30 days after publication, but information on criminal
offense and grave misconduct in dealing with treatment of workers may be filed with Regional Offices any
time.

WHERE SHOULD ON FILE AN APPEAL ON CANCELLATION/REVOKATION?

SOLE

WHEN SHOULD THE APPLICATION FOR RENEWAL BE FILED?

60 days before expiration of the AEP.

In case appointment or election takes place before expiration 15 working days after appointment or 15
days before expiration (whichever comes later)
In case appointment or election will take place after the expiration, the application for renewal must be filed
before the expiration of AEP (60 days) .

WHAT IS TECHNICAL EDUCATION?

Educational process designed at post-secondary and lower tertiary levels, officially recognized as non-
degree programs and aimed at preparing technicians, para-professionals, and other categories of middle-
level workers.
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WHAT IS THE DIFFERENCE BETWEEN APPRENTICES AND LEARNERS?

Apprenticeship Learnership

Both involve training period for jobs requiring skills that can be acquired though actual work experience.
Both are paid at least 75% of minimum wage

Highly skilled job in highly technical industries Semi-skilled jobs or industrial occupation

Does not last more than 6 months Does not last more than 3 months

Involves apprenticeable job Involves non-apprenticeable job

No commitment to hire Commitment to hire

WHAT ARE THE QUALIFICATIONS OF APPRENTICES?

(1) Be at least 15 years old (if minor cannot qualify for hazardous occupations)
(2) Be physically fir for occupation in which he desires to be trained
(3) Possess vocational aptitude and capacity for the particular occupation as established through
appropriate tests
(4) Possesses the ability to comprehend and follow oral and written instructions.

WHEN CAN CHILDREN BELOW 15 BE EMPLOYED?

(1) When a child works directly under the sole responsibility of his parents or legal guardian and where
only members of the employer's family are employed: Provided, however, That his employment neither
endangers his life, safety, health and morals, nor impairs his normal development; Provided, further, That the
parent or legal guardian shall provide the said minor 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 or television is essential: Provided, The employment contract is concluded by the childs
parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval of
the Department of Labor and Employment: and Provided, 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.

WHICH EMPLOYERS MAY HIRE APPRENTICES?

Only employers in highly technical industries may hire apprentices?

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WHAT IS THE EFFECT OF HIRING AN APPRENTICE WHO STARTS WORK BEFORE

APPROVAL OF THE APPRENTICESHIP AGREEMENT BY THE DOLE?
He is considered to be a regular employee instead of an apprentice. Prior approval is an indispensable
condition before an apprenticeship agreement can be entered into. Filing is mere preliminary step.

ARE THERE INSTANCES WHERE APPRENTICES ARE WITHOUT COMPENSATION?

Yes. SOLE may authorize, if training is required by the school or training program curriculum as a requisite
for graduation.

WHAT IS THE INCENTIVE FOR THE PRIVATE SECTOR TO PARTICIPATE?

Deduction from taxable income of 1/2 of the value of labor trading expense incurred, provided such program
is recognized by DOLE, and such deducted shall not exceed 10% of direct labor wage; provided further that
apprentices were paid the minimum wage.

HOW MAY AN INVESTIGATION OF VIOLATION OF APPRENTICESHIP AGREEMENT COME

ABOUT?
(1) upon compliant by any interested person, or (2) appropriate agency of DOLE upon it sown initiative.
This is appealable to the SOLE within 5 days from receipt of decision.

Exhaustion of administrative remedies is required. No action for enforcement of any apprenticeship

agreement or damages for breach is allowed unless he has exhausted all available administrative remedies.

WHEN MAY LEARNERS BE HIRED?

(1) When not experienced workers are available, the employment of learners is necessary to prevent
curtailment of opportunities
(2) When employment does not create unfair competition in terms of labor costs or impair or lower working
standards.

WHEN DO LEARNERS BECOME REGULAR EMPLOYEES?

(1) Upon accepting the offer of employer (due to commitment to hire learners if they so desire)
(2) Learners who work for 2 months are regular employees if training in terminated by employer before end
of period stipulated through no fault of the learner.

ARE THERE ANY LEARNERS PAID IN FULL FOR WORK DONE?

Yes. leaners employed in piece or incentive rate jobs during training period shall be paid in full for the work
done.

WHO ARE DISABLED PERSONS?

Those suffering from restriction of different abilities as a result of mental, physical, or sensory impairment, to
perform an activity in the manner or within the range considered normal for a human being.

WHEN ARE HANDICAPPED WORKERS ELIGIBLE FOR APPRENTICESHIP OR

LEARNERSHIP?
If their handicap is not such as to effectively impede the performance of job operations in the particular
occupations for which they are hired. After lapse of period, they shall be eligible for employment.

WHAT IS SHELTERED EMPLOYMENT?

Provision of productive work for disabled person through workshop providing special facilities, income
producing projects, of homework schemes to give them opportunity to earn a living.

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WHAT IS THE AFFIRMATIVE ACTION GIVEN TO DISABLED EMPLOYEES?

1% of all positions in government agencies, offices, or corporations all be reserved for them. Private
corporations with more than 100 employees are encouraged to do the same.

WHAT ARE THE ACTS OF DISCRIMINATION AGAINST DISABLED EMPLOYEES?

(a) Limiting, segregating or classifying a disabled job applicant in such a manner that adversely affects
his work opportunities;
(b) Using qualification standards, employment tests or other selection criteria that screen out or tend to
screen out a disabled person unless such standards, tests or other selection criteria are shown to be job-
related for the position on question and are consistent with business necessity;
(c) Utilizing standards, criteria, or methods of administration that:
(1) have the effect of discrimination on the basis of disability; or
(2) perpetuate the discrimination of others who are subject to common administrative control;
(d) Providing less compensation, such as salary, wage or other forms of remuneration and fringe
benefits, to a qualified disabled employee, by reason of his disability, than the amount to which a non-
disabled person performing the same work is entitled;
(e) Favoring a non-disabled employee over a qualified disabled employee with respect to promotion,
training opportunities, study and scholarship grants, solely on account of the latters disability;
(f) Re-assigning or transferring a disabled employee to a job or position he cannot perform by reason of
his disability;
(g) Dismissing or terminating the services of a disabled employee by reason of his disability unless the
employer can prove that he impairs the satisfactory performance of the work involve to the prejudice of
the business entities; Provided, however, That the employer first sought provide reasonable
accommodations for disabled persons;
(h) Failing to select or administer in the effective manner employment tests which accurately reflect the
skills, aptitude or other factor of the disabled applicant or employee that such test purports to measure,
rather than the impaired sensory, manual or speaking skills of such applicant or employee, if any; and
(i) Excluding disabled persons from membership in labor unions or similar organization.

WHEN MAY DISABLED EMPLOYEES BE SUBJECT TO A MEDICAL EXAMINATION?

(1) when all entering employees are subjected to such an examination regardless of disability
(2) information obtained is collected and maintained in separate forms and medical files as a confidential
medical record, provided that:
(a) supervisors and managers may be informed regarding necessary restrictions on the work or duties of
the employees and necessary accommodations
(b) first aid and safety personnel may be informed, when appropriate, if the disability might require
emergency treatment
(c) government officials investigating compliance with this Act shall be provided relevant information on
request
(d) the results of such examination are used only in accordance with this Act

WHAT ARE THE TYPES OF RIGHTS AND PRIVILEGES GIVEN TO DISABLED EMPLOYEES?
(1) Equal Opportunity for Employment
(2) Sheltered Employment
(3) Opportunity to be Learners/Apprentices

WHY IS IT IMPORTANT TO REGULATE THE HOURS OR WORK TO 8 HOURS A DAY?

Due to health purposes and to solve unemployment

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WHO ARE EXEMPTED FROM THE LABOR CODES CONDITIONS OF WORK?

(1) government employees
(2) managerial employees
(3) field personnel
(4) members of the family of the employer who are dependent on him for support
(5) domestic helpers persons in the personal service of another
(6) workers who are paid by result (piece-workers) > if their output rates are in accordance with the
standards prescribed under Section 8, Rule VII, Book Three of these regulations, or where such rates
have been fixed by the Secretary of Labor and Employment

ARE ALL GOVERNMENT EMPLOYEES EXEMPT?

No. Employees of GOCCs organised under the Corporation Code are not exempt and are covered.

WHO ARE MANAGERIAL EMPLOYEES?

Those who primary duty consists of the management of the establishment in which they are employer or of a
department or subdivision thereof, and to other officers or members of the managerial staff.

Managerial employees if they meet the ff. conditions:

(1) their primary duty consists of the management of the establishment in which they are employed or of a
department or subdivision thereof
(2) they customarily and regularly direct the work of two or more employees therein.
(3) they have the authority to hire and fire employees of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the promotion or any other change of status of other
employees, are given particular weight.

Officers or members of the managerial staff are those who perform the ff. duties and responsibilities:
(1) the primary duty consists of the performance of work directly related to management policies of the
employer
(2) customarily and regularly exercise discretion and independent judgement
(3) (i) regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the
management of the establishment in which he is employed or subdivision thereof; or
(ii) execute under general supervision work along specialized and technical lines requiring special
training, experience, or knowledge; or
(iii) execute, under general supervision, special assignments and tasks
(4) do not devote more than 20% of their hours works in a work week to activities which are not directly and
closely related related to the performance of the work described in par (1) (2) and (3) above.

WHO ARE FIELD PERSONNEL?

(1) non-agricultural employees
(2) perform duties away from the principal place of business
(3) hours of work cannot be ascertained (due to them being unsupervised)

HOW DO WE DETERMINE WHETHER AN EMPLOYEES ACTUAL WORKING HOURS IN THE

FIELD CAN BE DETERMINED WITH REASONABLE CERTAINTY?
Query must be made as to whether or not employees rime and performance is constantly supervised by the
employer.

AT WHAT INSTANCE IS A PIECE WORKER COVERED UNDER CONDITIONS OF WORK?

If piece-worker is supervised and works within the premises then the worker is not exempted.

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WHAT ARE THE NORMAL HOURS OF WORK?

The normal hours of work shall not exceed 8 hours a day?

WHAT IS THE RULE FOR HEALTH PERSONNEL?

GR: Health personnel in cities and municipalities with a population of at least 1,000,000 or in hospitals and
clinics with a bed capacity of at least 100 shall hold regular office hours for 8 hours a day, for five days a
week, exclusive of time for meals.

Except where the exigencies of the service require that such personnel work for 6 days or 48 hours in which
case they shall be entitled to an additional compensation for at least 30% of their regular wage for work on
the 6th day.

WHAT ARE THE TYPES OF FLEXIBLE WORK ARRANGEMENT?

(1) Compressed Work Week
- Refers to one where the normal work week is reduced to less than 6 days but the total number of work
hours of 48 hours per week shall remain. The normal workday is increased to more than 8 hours but not to
exceed 12 hours, without corresponding overtime premium.
(2) Gliding/Flexi-time Schedule
- Refers to one where the employees are required to complete the core workhorse in the establishment but
are free to determine their arrival and departure time
(3) Flexible Holiday Time
- Refers to one where the employees agree to avail the holidays at some other days provided there is no
diminution of existing benefits as a result of such arrangement.

WHAT ARE THE REQUISITES OF FLEXIBLE WORK ARRANGMENT?

(1) The scheme is expressly and voluntarily supported by majority of the employees affected
(2) In forms using substances or operating in conditions that are hazardous to health, a certification is
needed from an accredited safety organization of the firms safety committee that the work beyond 8
hours is within the limits or levels of exposure set by DOLEs occupational safety and health standards
(3) The DOLE Regional Office is duly notified

WHAT ARE THE OTHER FLEXIBLE WORK ARRANGEMENTS?

(1) Rotation - rotate workers but no diminution of benefits
(2) Broken time

WHAT ARE COMPENSABLE HOURS WORKED?

(1) All time during which an employee is required to be on duty or at the prescribed workplace (regardless of
whether or not it is spent in actual labor or involves physical or mental exertion) (ON DUTY)
(2) All time during which an employee is suffered or permitted to work (AT WORK)

WHEN IS A REST PERIOD COMPENSABLE ?

Rest periods or coffee breaks of short duration (5-20 minutes) during working hours shall be compensable
working time.

DOES THE 8 HOUR WORKING PERIOD INCLUDE A MEAL BREAK?

No, regular meal periods of not less than 60 minutes are nor part of the 8 hour working period, unless the
employer shall give a meal period of not less than 20 minutes but less than 1 hour. Such shorter meal period
is conserved as compensable working time.

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WHAT ARE THE CONDITIONS FOR AN EMPLOYER TO PROVIDE COMPENSABLE MEAL

PERIODS LESS THAN 60 MINUTES?
(1) where the work is non-manual work innate and does not involve strenuous physical exertion
(2) where the establishment regularly operates not less than 16 hours a day
(3) in case of actual or impending emergencies or there is urgent work to be performed on machineries,
equipment, or installations to avoid serious loss which the employer would otherwise suffer
(4) where the work is necessary to prevent serious loss of perishable goods

WHEN IS WAITING TIME CONSIDERED AS COMPENSABLE WORKING TIME?

(1) If waiting is an integral part of his work or
(2) if the employee is required or engaged by the employer to work

WHEN SHALL AN EMPLOYEE BE CONSIDERED AS WORKING WHILE ON CALL?

(1) when he is to remain on call in the employers premises
(2) when he is so close to the premises that he cannot use his time effectively and gainfully for his own
purpose

WHEN IS AN EMPLOYEE NOT WORKING WHILE ON CALL?

An employee who is not required to leave word at his home or with company officials where he may be
reached is not working while on call.

WHEN IS INACTIVITY DUE TO WORK INTERRUPTIONS CONSIDERED AS WORKING TIME?

(1) If the imminence of the resumption of work requires the employees presence at the place of work or
(2) If the interval is too brief to be utilised effectively and gainfully in the employees own interest

WHEN IS WORK AFTER NORMAL HOURS COMPENSABLE?

If the work was with the knowledge of his employer or immediate supervisor and it:
was necessary, or
benefited the employer, or
employee could not abandon his work at the end of his normal working hours because he had no
replacement

WHO HAS BURDEN OF PROOF OF PROVING OVERTIME?

Employee has burden of proof of proving overtime. One must prove that there was prior authorisation to
work beyond normal hours.

WHEN ARE LECTURES, MEETINGS, AND TRAINING PROGRAMS COMPENSABLE?

These are not compensable provided the following requirements are met:
(a) attendance is outside of the employees regular working hours
(b) attendance is in fact voluntary
(c) the employee does not perform any productive work during such attendance

WHAT ARE THE TYPES OF TRAVEL TIME? WHICH ARE COMPENSABLE?

(1) Travel from home to work - NOT COMPENSABLE; incidental to employment
(2) Travel all in a days work - COMPENSABLE
(3) Travel away from home - COMPENSABLE if cuts across workday during normal working hours

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WHAT IS THE ADDTL COMPENSATION FOR OVERTIME WORK? WHAT IF REST DAY/
HOLIDAY
Ordinary day - Regular Wage plus at least 25% thereof.
Rest Day/Holiday - Wage rate for holiday and rest day plus at least 30% thereof.

WHEN MAY AN EMPLOYEE BE REQUIRED TO PERFORM OVERTIME WORK?

(1) When the country is at war or when any other national or local emergency has been declared by the
National Assembly or the Chief Executive
(2) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due
to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon,
earthquake, epidemic, or other disaster or calamity
(3) When there is urgent work to be performed on machines, installations, or equipment in order to avoid
serious loss or damage to the employer or some other cause of similar nature
(4) When the work is necessary to prevent loss or damage to perishable goods
(5) Where the completion or continuation of the work started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or operations of the employer.
(6) When overtime work is necessary to avail of favourable weather or environmental conditions where
performance or quality of work is dependent thereon.
(LIST IS EXCLUSIVE)

MAY UNDERTAKE BE OFFSET BY OVERTIME?

Undertime work on any particular day shall not be offset by overtime work on any other day.
Permission given to the employee to go on leave on some other day of the week shall not exempt the
employer from paying additional compensation required in this chapter.

WHO HAS BURDEN OF PROOF TO PROVE WORK?

Employer, since he is duty bound to keep records. (SSS vs. CA)

WHAT IS THE RATIONALE BEHIND NIGHT SHIFT DIFFERENTIAL?

Night work is generally undesirable and has adverse effects on the health of the workers.

WHEN OT AND NSD ARE BOTH DUE, IS NSD CONSIDERED IN COMPUTATION FOR OT?
NO, but OT is considered in computation of NSD. An additional amount of no less than ten per cent (10%)
of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m.

WHAT IS NIGHT SHIFT DIFFERENTIAL?

Additional 10% of regular wage for each hour of work performed between 10 pm - 6 am.

WHAT ARE THE EXEMPTIONS GRANTING OF NIGHT SHIFT DIFFERENTIAL?

(1) Those of the government
(2) Those of retail and service establishment regularly employing not more than 5 workers
(3) Domestic helpers and persons in the personal service of another
(4) Managerial employees
(5) Field personnel and other 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.

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WHAT WEEKLY REST PERIOD ARE EMPLOYEES ENTITLED TO?

Rest period of not less than 24 consecutive hours after every 6 consecutive normal work days

WHAT IS THE WEEKLY REST PERIOD SUBJECT TO?

(1) CBA
(2) Preference based on religious grounds

WHEN SHOULD EMPLOYEE COMMUNICATE PREFERENCE BASED ON RELIGION?

Employee shall make known his preference to the employer in writing at least 7 days before the desired
effectivity of the initial rest day so preferred.

WHEN MAY THE EMPLOYER NOT GRANT THE REQUEST BASED ON RELIGIOUS
PREFERENCE? WHAT ALTERNATIVE IS AVAILABLE?
When the choice of the employee as to rest day based on religious grounds will inevitable result in serious
prejudice or obstruction to the operations of the undertaking and the employer cannot normally be expected
to resort to other remedial measures.
The employers may schedule the weekly rest day of his choice for at least 2 days in a month.

WHEN AND HOW SHOULD THE EMPLOYER MAKE THE REST PERIOD KNOWN?
Whether or not rest is given simultaneously or not, it shall be made known through the employees through
written notices placed conspicuously in the work place at least one week before they become effective.

WHEN MAY THE EMPLOYER REQUIRE WORK ON A REST DAY?

(1) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake,
epidemic, to other disaster or calamity to prevent loss of life and property, or imminent danger to public
safety.
(2) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious
loss which the employer would otherwise suffer
(3) In the event of abnormal pressure of work due to special circumstances, where the employer cannot
ordinarily be expected to resort to other measures
(4) To prevent loss or damage to perishable goods
(5) Where the nature of the work requires continuous operations and the stoppage of work may result in
irreparable injury or loss to the employer
(6) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of
Labor.
(i) Where the nature of the work is such that the employees have to work continuously for seven 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
(ii) When the work is necessary to avail of favourable weather or environmental conditions where
performance or quality of work is dependent thereon.

WHO ARE EXEMPT FROM GRANTING HOLIDAY PAY?

Retail and service establishment regularly employing less than 10 workers. (cf. NSD which exempts those
retail and service establishment regularly employing not more than 5)

WHAT ARE THE SPECIAL HOLIDAYS?

Nino Aquino Day (August 21) , All Saints Day (November 1) , Last Day of the Year (December 31).

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WHAT IS THE SIGNIFICANCE OF REGULAR VS. SPECIAL HOLIDAYS?

Law grants that workers shall be paid daily wage during regular holidays. Work done on any holiday is
entitled to 200%.

WHAT IS THE ADDITIONAL COMPENSATION IF ONE WORKS ON A HOLIDAY?

200%. If holiday falls on rest day, additional premium of 30% of holiday pay rate of 200% based on his
regular wage rate.

WHAT IS THE SPECIAL RULE AS TO FACULTY IN PRIVATE SCHOOL?

They are not entitled to holiday pay for regular holidays during semestral vacations. They shall however be
paid for the regular holidays during Christmas season.

IS AND EMPLOYER REQUIRED TO MAKE ADJUSTMENTS IN MONTHLY SALARY RATE

TAKING INTO ACCOUNT LEGAL HOLIDAYS FALLING ON SUNDAYS?
No.

DO MUSLIM HOLIDAYS APPLY TO MUSLIMS ONLY?

No. Benefits of holiday pay are given regardless of faith.

WHAT IS THE RULE ON ABSENCES PRIOR TO HOLIDAY.

Tue Wed Maundy Thursday Good Friday

Absent X X

Absent Works

Works Leave w/ pay or Rest

Day

Works

WHO IS ENTITLED TO SERVICE INCENTIVE LEAVE?

Every employee who has rendered at least on year or service shall be entitled to a yearly service incentive
leave of five days with pay.

WHO ARE NOT ENTITLED TO SERVICE INCENTIVE LEAVE?

(1) Those already enjoying the benefit therein
(2) Those enjoying vacation leave with pay of at least 5 days
(3) Those employed in establishment regularly employing less than 10 employees (cf. HP and NSD need not
be service and retail)
(4) Those employed in establishments exempting from granting this benefit by the Secretary of Labor and
Employment after considering viability or financial condition of such establishment.

MAY NON-CONTINUOUS SERVICE BE CONSIDERED AS 1 YEAR FOR PURPOSES OF SIL?

Yes.

IS SERVICE INCENTIVE LEAVE COMMUTABLE?

Yes, if it is not used or exhausted at the end of the year.

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CONDITIONS FOR ENTITLEMENT OF PATERNITY LEAVE BENEFITS

(1) he is an employee at the time of the delivery of his child
(2) he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage
(3) he has applied for paternity leave in accordance with Sec 4 of IRR. (not needed if miscarriage)
(4) his wife has given birth or has suffered a miscarriage

WHAT ARE THE BENEFITS UNDER PATERNITY LEAVE

Paternity leave is 7 days with full pay for the first four deliveries of the legitimate spouse with whom he is
cohabiting.

WHEN SHOULD THE MALE EMPLOYEE APPLY FOR PATERNITY LEAVE?

(1) Within a reasonable period of time from the expected date of delivery by the pregnant spouse or
(2) Within such period as may be provided for in company rules of CBA
*Not needed in cases of miscarriage

MAY THE EMPLOYEE ENJOY THE LEAVE BEFORE OR DURING THE DELIVERY?
Yes. Provided that the total number of days shall not exceed 7 days for each delivery

IS PATERNITY LEAVE CONVERTIBLE TO CASH?

No. (cf. SIL is convertible to cash)

WHAT IF THE COMPANY ALREADY HAS EXISTING PATERNITY LEAVE BENEFIT?

EMERGENCY OR CONTINGENCY LEAVE WITHOUT SPECIFIC PROVISIONS ON PATERNITY
LEAVE?
If greater than that granted by law, it prevails. If less than, then company must adjust the benefit to comply
with law. As to the second question, this does not count as paternity leave. The Law shall apply in full.

WHO ARE SOLO PARENTS?

(1) A woman who gives birth as a result of rape and other crimes against 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.

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Labor Standards Study Guide Melicor (D2019)

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.

WHAT IF THE SOLO PARENTS INCOME IS BELOW THE POVERTY THRESHOLD?

One shall be eligible for assistance.

WHAT IS PARENTAL LEAVE?

Leave of not more than 7 working days every year for solo parent who has rendered at least 1 year of
service.

WHAT ARE THE CONDITIONS OF ENTITLED OF PARENTAL LEAVE?

(1) he/ she has rendered at least one year of service whether continuous or broken
(2) he/she has notified employer of availment thereof within reasonable time
(3) he/she has presented a Solo Parent Identification Card to employer.

IS THE PARENTAL LEAVE CUMULATIVE? IS IT CONVERTIBLE TO CASH?

Not cumulative. Not convertible to cash unless specifically agreed upon previously. However, if said leave
was denied as a result of non-compliance, the value of which shall be used as basis for computation of
damages.

ASIDE FROM PARENTAL LEAVE, WHAT ARE THE OTHER BENEFITS PROVIDED?
(1) Flexible Work Schedule
Provided that the same shall not affect individual and company productivity
Provided further that any employer may request exemption from the above requirements from DOLE
on certain meritorious grounds
(2) No discrimination with respect to terms and conditions of employment

WHICH ESTABLISHMENTS ARE COVERED UNDER THE RULES OF SERVICE CHARGES?

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.

WHO ARE THE EMPLOYEES COVERED UNDER THE RULE ON SERVICE CHARGES?
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. (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.)

WHAT IS THE RATE OF DISTRIBUTION OF SERVICE CHARGES?

85% for covered employees and 15% for management. 85% will be distributed equally. 15% will answer for
losses breakages and distribution to managerial employees at the discretion of management.

HOW FREQUENT SHOULD THE DISTRIBUTION OF SERVICE CHARGE BE?

Not less than once every two weeks, or twice a month with intervals not exceeding 16 days.

WHAT HAPPENS IF SERVICE CHARGES ARE ABOLISHED?

The share of covered employees shall be considered integrated in their wages. The basis of the amount is
the average monthly share of each employee for the last 12 months immediately preceding the abolition.

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