LABOR STANDARDS (Atty.
Paulino Ungos) San Beda College Alabang
DISCLAIMER: The Provisions used in this Code is based on
the updated version of the Labor Code Codal, not on the Book
of Atty. Paulino Ungos.
This work is not intended to replace the book of Atty. Ungos, it
merely highlights the important topics covered therein.
Watch out for the stars  it is best to memorize this provision
or paragraph.
PRESIDENTIAL DECREE NO. 442
PRELIMINARY TITLE
Chapter I
GENERAL PROVISIONS
ART. 1. Name of Decree. – This Decree shall be known
as the “Labor Code of the Philippines.”
ART. 2. Date of Effectivity. – This Code shall take effect
six (6) months after its promulgation.
PROMULGATION: May 1, 1974
EFFECTIVITY: November 1, 1974
ART. 3. Declaration of Basic Policy. - The State shall
afford protection to labor, promote full employment, ensure
equal work opportunities regardless of sex, race or creed
and regulate the relations between workers and employers.
The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and
just and humane conditions of work.
REASON: To raise the worker to equal footing with the
employer. Hence, the construction of this Code in case of doubt,
is in favour of labor.
EXTENT OF PROTECTION: Not only against oppressive
employers but also against unscrupulous union leaders.
LIMITATIONS:
a) Cannot be used to defeat the rights of an employer.
b) Cannot be used as an excuse to distribution charities at the
expense of an employer.
c) Not available when both parties have violated the law because
neither party is entitled to protection.
ART. 4. Construction in Favor of Labor. - All doubts in
the implementation and interpretation of the provisions of
this Code, including its implementing rules and regulations,
shall be resolved in favour of labor.
REASON: Those who have less in life should have more in law.
APPLICABILITY: Applies only when there is a doubt. When
there is no doubt, there is no room for interpretation.
ART. 5. Rules and Regulations. – The Department of
Labor and Employment (DOLE) and other Government
agencies charged with the administration and enforcement
of this Code or any of its parts shall promulgate the
necessary implementing rules and regulations. Such rules
and regulations shall become effective fifteen (15) days after
announcement of their adoption in newspapers of general
circulation.
At least 2 newspapers (newspaperS nga eh)
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LIMITATION OF RULES AND REGULATIONS: It cannot
enlarge or amend the provisions of the Labor Code.
ART. 6. Applicability. – All rights and benefits granted
to workers under this Code shall, except as may otherwise be
provided herein, apply alike to all workers, whether
agricultural or non-agricultural.
GENERAL RULE: It applies only to employees in the Private
Sector, whether agricultural or non-agricultural.
A. With regard to normal working hours of work, meal periods,
night-shift differential, overtime pay, weekly rest day, rest day
and special day premium, regular holiday pay, service incentive
leave and service charges, the exceptions are:
1) Government employees, including those employed in
Government-Owned and Controlled Corporations;*
2) Managerial employees;
3) Members and employees of the managerial staff;
4) Field personnel;
5) Members of the family of the employer who are
dependent on him for support;
6) Domestic helpers;
7) Persons in the personal service of another; and
8) Workers paid by results.
B. With regard to the term “wages,” the exceptions are:
1) Those mentioned above;
2) Farm tenancy and leasehold;
3) Domestic service;
4) Persons working in their respective homes in needle work;
and
5) Persons working in cottage industries.
C. With regard to retirement benefits, the exceptions are:
1) Those enumerated in “A”;
2) Employees in retail and service establishments employing
not more than 10 employees; and
3) Workers of agricultural establishments employing not more
than 10 employees.
*GOCC’s with special charter are under the Civil Service Law,
hence they are not included. However, if the GOCC has a
Special Charter and is registered in the Securities and Exchange
Commission (SEC), the employees thereof are covered by the
Labor Code.
To fall within the coverage of the Labor Code, it is
essential that there be employer-employee relationship.
ELEMENTS OF EMPLOYER-EMPLOYEE RELATIONSHIP:
(PWES!)
a) Selection and Engagement of the employees;
b) Payment of Wages;
c) Power of dismissal; and
d) Power to control the employees conduct.
Among the four elements, the power of control is the most
important element that the other elements may even be
disregarded.
When asked, what determines the existence of an employer-
employee relationship, the answer is:
- (MEANS and ENDS) That the employer has control over the
Means and the Ends. In other words, the employer has control
not only over the results for which the employee was hired
for, but also the method how the results are to be attained.
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 LABOR STANDARDS (Atty. Paulino Ungos)
Does the employer-employee relationship exist in the
following professions?
- INSURANCE AGENTS – If salaried, keep definite hours,
and work under the control and supervision of the company,
YES. If they are merely registered who work on commission
basis, NO.
- COLLECTION AGENTS – When the employer is only
interested in the results and does not concern himself how
the employee will get the results, NO.
- IN-HOUSE LAWYERS – NO
- PROFESSORS – YES
- WORKING SCHOLARS – If (a) there is a training
agreement; and (b) the training program is duly accredited
by the proper government agency, YES.
- CONSULTING OR VISITING PHYSICIANS – Generally,
NO. But if the case involves medical negligence, YES.
- JEEPNEY DRIVERS or TAXI DRIVERS UNDER THE
“BOUNDARY SYSTEM” – Yes.
- STEVEDORES OR ARRASTRE WORKERS – Between
the shipping company and said workers, NO. But if said
employees acted as agents of the shipping company, YES.
- SUGAR FARM WORKERS – Between the sugar central
owner and the sugar planters, NO.
- GOLF CADDIES - NO
Cases where the Employer-Employee relationship is
suspended: (MOLDS)
1) Employee fulfils a Military or Civic duty;
2) During Off-Season, in case of regular seasonal employees;
3) When the employee is Laid-off not exceeding 6 months;
4) Drydocked or under repair fishing vessels; and
5) When the employee is under Suspension;
When is the E-E Relationship terminated?
- Dismissal of employee;
- Resignation of employee;
- Abandonment of employee of his duties; and
- Expiration of employment period.
What are the factors which do not interrupt E-E
relationship?
- Leave of absence with pay
- Illegal dismissal
- Strike
HOW TO DETERMINE IF WHAT IS PAID IS WAGES:
a) If paid in consideration of labor being performed, the
compensation is considered as “wages:”
b) If paid in consideration of the results or finished work, the
compensation is not considered as wages.
Chapter II
EMANCIPATION OF TENANTS
Opinio non Juris: This part was not discussed by Atty. Ungos.
I included this part simply because these are provisions of the
law.
ART. 7. Statement of Objectives. – Inasmuch as the old
concept of land ownership is concerned by a few has
spawned valid and legitimate grievances that gave rise to
violent conflict and social tension and the redress of such
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legitimate grievances being one of the fundamental
objectives of the New Society, it has become imperative to
start reformation with the emancipation of the tiller of the
soil from his bondage.
ART. 8. Transfer of Lands to Tenant-Workers. – Being a
vital part of the labor force, tenant farmers on private
agricultural lands primarily devoted to rice and corn under
a system of share crop or lease tenancy whether classified as
landed estate or not shall be deemed owner of a portion
constituting a family size farm of five (5) hectares, if not
irrigated an three (3) hectares, if irrigated.
In all cases, the landowner may retain an area of not
more than seven (7) hectares is such landowner is cultivating
such area or will now cultivate it.
ART. 9. Determination of Land Value. – For the purpose
of determining the cost of the land to be transferred to the
tenant-farmer, the value of the land shall be equivalent to
two and one-half (2-1/2) times the average harvest of three
(3) normal crop years immediately preceding the
promulgation of Presidential Decree No. 27 on October 21,
1972.
The total cost of the land, including interest at the rate
of six percent (6%) per annum, shall be paid by the tenant in
fifteen (15) years of fifteen (15) equal annual amortizations.
In case of default, the amortization due shall be paid by
the farmer’ cooperative in which the defaulting tenant-
farmer is a member, with the cooperative having a recourse
against him.
The government shall guaranty such amortizations with
shares of stock in government-owned and government-
controlled corporations.
ARTI. 10. Conditions of Ownership. — No title to the
land owned by the tenant-farmers shall be actually issued to
a tenant-farmer unless and until the tenant has become a full
fledged member of a duly recognized farmer's cooperative.
Title to the land acquired pursuant to Presidential
Decree No. 27 or the Land Reform Program of the
Government shall not be transferable except by hereditary
succession or to the Government in accordance with the
provisions of this Code, the Code of Agrarian Reforms and
other existing laws and regulations.
ART. 11. Implementing Agency. — The Department of
Agrarian Reforms shall promulgate the necessary rules and
regulations to implement the provisions of this Chapter.
BOOK ONE
Pre-Employment
ART. 12. Statement of Objectives. — It is the policy of the
State:
(a) To promote and maintain a state of full
employment through improved manpower training,
allocation and utilization.
(b) To protect every citizen desiring to work locally or
overseas by securing for him the best possible terms and
conditions of employment;
(c) To facilitate a free choice of available employment
by persons seeking work in conformity with the national
interest;
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 LABOR STANDARDS (Atty. Paulino Ungos)
(d) To facilitate and regulate the movement of workers
in conformity with the national interest;
(e) To regulate the employment of non-resident aliens;
(f) To strengthen the network of public employment
offices and to undertake the phasing out of private fee-
charging employment agencies;
(g) To insure careful selection of Filipino workers for
overseas employment in order to protect the good name of
the Philippines abroad.
TITLE I
Recruitment and Placing of Workers
CHAPTER I
General Provisions
ART. 13. Definition of Terms. — (a) "Worker" means
any member of the labor force, whether employed or
unemployed.
 (b) "Recruitment and placement" refers to any act of
canvassing, enlisting, contracting, transporting, utilizing,
hiring or procuring workers, including referrals, contact
services, promising employment or advertising for
employment locally or abroad, whether for profit or not:
Provided, That whenever two or more persons are in any
manner promised or offered employment for a fee, the
individual or entity making such offer or promise shall be
deemed engaged in recruitment and placement.
(c) "Private fee-charging employment agency" means
any person or entity engaged in recruitment and placement
of workers for a fee which is charged, directly or indirectly,
from the workers or employers or both.
(d) "License" means a document issued by the
Department of Labor authorizing a person or entity to
operate a private employment agency.
(e) “Private recruitment agency” means any person or
association engaged in the recruitment and placement of
workers, locally or overseas, without charging, directly or
indirectly, any fee from the workers or employers.
(f) “Authority” means a document issued by the
Department of Labor authorizing a person or association to
engage in recruitment and placement activities as a private
recruitment entity.
(g) “Seaman” means any person employed in a vessel
engaged in maritime navigation.
(h) “Overseas employment” means employment of a
worker outside the Philippines.
(i) “Emigrant” means any person, worker or
otherwise, who emigrates to a foreign country by virtue of
an immigrant visa or resident permit or its equivalent.
The phrase shall be deemed merely creates a presumption that
a person is engaged in recruitment and placement whenever he
deals for a fee with two or more persons.
 MIDTERMS: Read Darvin vs. CA (page 41)
ART. 14. Employment promotion. — The Secretary of
Labor shall have the power and authority to:
(a) To organize and establish new employment offices
in addition to the existing employment offices under the
Department of Labor as the need arises;
(b) To organize and establish a nationwide job
clearance and information system to inform applicants
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registering with a particular employment office of job
opportunities in other parts of the country as well as job
opportunities abroad;
(c) To develop and organize programs that will
facilitate occupational, industrial and geographical mobility
or labor and provide assistance in the relocation of workers
from one area to another; and
(d) To require any person, establishment, organization
or institution to submit such employment information as
may be prescribed by the Secretary of Labor.
ART. 15. Power to Phase Out. — (a) The Bureau of
Employment Services shall primarily be responsible for
developing and monitoring a comprehensive employment
program. It shall have the power and duty:
1. To formulate and develop plans and programs to
implement the employment promotion objectives of
this Title;
2. To establish and maintain a registration and/or
licensing system to regulate private sector
participation in the recruitment and placement of
workers, locally and overseas, and to secure the best
possible terms and conditions of employment for
Filipino contract workers and compliance therewith
under such rules and regulations as may be issued by
the Minister of Labor;
3. To formulate and develop employment programs
designed to benefit disadvantaged groups and
communities;
4. To establish and maintain a registration and/or
work permit system to regulate the employment of
aliens;
5. To develop a labor market information system in
aid of proper manpower and development planning;
6. To develop a responsive vocational guidance and
testing system in aid of proper human resources
allocation; and
7. To maintain a central registry of skills, except
seamen.
(b) The regional offices of the Ministry of Labor shall
have the original and exclusive jurisdiction over all matters
or cases involving employer-employee relations including
money claims, arising out of or by virtue of any law or
contracts involving Filipino workers for overseas
employment except seamen: Provided, That the Bureau of
Employment Services may, in the case of the National
Capital Region, exercise such power, whenever the Minister
of Labor deems it appropriate. The decision of the regional
offices of the Bureau of Employment Services, if so
authorized by the Minister of Labor as provided in this
Article, shall be appealable to the National Labor Relations
Commission upon the same grounds provided in Article 223
hereof. The decisions of the National Labor Relations
Commission shall be final and inappealable.
(c) The Minister of Labor shall have the power to
impose and collect fees based on rates recommended by the
Bureau of Employment Services. Such fees shall be
deposited in the National Treasury as a special account of
the General Fund, for the promotion of the objectives of the
Bureau of Employment Services, subject to the provisions of
Section 40 of Presidential Decree No. 117.
SECTION 40.Special Budgets for Lump-Sum
Appropriations. — Expenditures from lump-sum
appropriations authorized for any purpose or for any
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department, office or agency in any annual General
Appropriations Act of other Act and from any fund of
the National Government, shall be made in accordance
with a special budget to be approved by the President,
which shall include but shall not be limited to the
number of each kind of position, the designations, and
the annual salary proposed for which an appropriation
is intended. This provision shall be applicable to all
revolving funds, receipts which are automatically
made available for expenditure for certain specific
purposes, aids and donations for carrying out certain
activities, or deposits made to cover the cost of special
services to be rendered to private parties. Unless
otherwise expressly provided by law, when any Board,
head of department, chief of bureau or office, or any
other official, is authorized to appropriate, allot,
distribute or spend any lump-sum appropriation or
special, bond, trust, and other funds, such authority
shall be subject to the provisions of this section.
In case of any lump-sum appropriation for
salaries and wages of temporary and emergency
laborers and employees, including contractual
personnel, provided in any General Appropriation Act
or other Acts, the expenditure of such appropriation
shall be limited to the employment of persons paid by
the month, by the day, or by the hour.
E.O. 797 abolished the Bureau of Employment Services. In its
stead, the Bureau of Local Employment (domestic functions)
and the Philippine Overseas Employment Administration
(overseas functions) were created.
 ART. 16. Private Recruitment. – Except as provided in
Chapter II of this Title, no person or entity other than the
public employment offices, shall engage in the recruitment
and placement of workers.
Q: Who are qualified to engage in recruitment and
placement agencies?
A: Generally, only public employment offices can engage in
recruitment and placement of workers, whether for local or
overseas employment. By way of exception, the private sector is
given the privilege to engage in recruitment and placement, but
limited to the following:
(a) Private Employment Agency (PEA);
(b) Private Recruitment Entity (PRE);
(c) Shipping and Manning Agency (SMA); and
(d) Such other persons or entities as may be authorized by the
Secretary of Labor and Employment.
ART. 17 Overseas Employment Development Board. —
An Overseas Employment Development Board is hereby
created to undertake, in cooperation with relevant entities
and agencies, a systematic program for overseas
employment of Filipino workers in excess of domestic needs
and to protect their rights to fair and equitable employment
practices. It shall have the duty:
1. To promote the overseas employment of Filipino
workers through a comprehensive market promotion and
development program;
2. To secure the best possible terms and conditions of
employment of Filipino contract workers on a government-
to-government basis and to ensure compliance therewith;
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3. To recruit and place workers for overseas
employment on a government-to-government arrangement
and in such other sectors as policy may dictate; and
4. To act as secretariat for the Board of Trustees of the
Welfare Training Fund for Overseas Workers.
As mentioned earlier, the Philippine Overseas Employment
Administration (POEA) took over the functions of Overseas
Employment Development Board.
Overseas Employment – employment of a worker outside the
Philippines under a valid contract
Migrant Worker – a person who holds and overseas
employment; applies to both land based workers and seafarers
The POEA has the original and exclusive jurisdiction to hear
and decide:
(a) All cases which are administrative in character, involving or
arising out of violations of recruitment laws, rules and
regulations, including refund of fees collected from workers and
violations of the conditions for the issuance of license to recruit
landbased overseas workers or seafarers; and
(b) Disciplinary action cases against migrant workers or
seafarers, foreign employers and principals.
 MIDTERM Q: What is the RELIEF of a migrant
worker?
A: Double the claims plus 10% as attorney’s fees.
Q: What is the REMEDY of a migrant worker who wants to
bring action against his employer?
A: File a complaint in POEA with the right to appeal to the
Secretary of Labor and Employment fifteen (15) days from the
receipt of the decision of the POEA.
Q: What are the Remedies of a locally or domestic
employee?
A: See Articles 128 and 129.
Q: What if the issue was decided upon by a court in a
foreign country?
A: File a case in the courts of justice.
Note: Differentiate a relief from a remedy. Remedies,
According to Atty. Ungos, are the procedures which are
available to the employee to assert any right granted to him by
law, while Reliefs are the awards that may be granted to an
aggrieved employee after the court finds fault against his
employer.
 ART. 18. Ban on Direct-Hiring. – No employer may hire
a Filipino worker for overseas employment except through
the Boards and entities authorized by the Secretary of
Labor. Direct-hiring by members of the diplomatic corps,
international organizations and such other employers as
may be allowed by the Secretary of Labor is exempted from
this provision.
GENERAL RULE: No foreign employer may directly hire
Filipino workers.
EXCEPTIONS:
(a) Members of diplomatic corps;
(b) International organizations; and
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 LABOR STANDARDS (Atty. Paulino Ungos)
(c) Other employers who may be allowed by the Secretary to
directly hire their workers.
Name Hire – a worker who is able to secure an overseas
employment on his own without the assistance or participation
of any agency.
ART. 19. (Superseded by B.P. Blg. 79 or the Commission
on Filipino Overseas)
ART. 20. (Superseded by E.O. 797or An Act Reorganizing
the Ministry of Labor and Employment, creating the Philippine
Overseas Employment Administration, and for other purposes)
ART. 21. Foreign Service Role and Participation. – To
provide ample protection to Filipino workers abroad, the
labor attaches, the labor reporting officers duly designated
by the Secretary of Labor and the Philippine diplomatic or
consular officials concerned shall, even without prior
instruction or advice from the home office, exercise the
power and duty:
(a) To provide all Filipino workers within their
jurisdiction assistance on all matters arising out of
employment;
(b) To insure that Filipino workers are not exploited or
discriminated against;
(c) To verify and certify as requisite to authentication
that the terms and conditions of employment in contracts
involving Filipino workers are in accordance with the Labor
Code and rules and regulations of the Overseas Employment
Development Board and National Seamen Board;
(d) To make continuing studies or researches and
recommendations on the various aspects of the employment
market within their jurisdiction;
(e) To gather and analyze information on the
employment situation and its probable trends, and to make
such information available; and
(f) To perform such other duties as may be required of
them from time to time.
 ART. 22. Mandatory Remittance of Foreign Exchange
Earnings. — It shall be mandatory for all Filipino workers
abroad to remit a portion of their foreign exchange earnings
to their families, dependents, and/or beneficiaries in the
country in accordance with rules and regulations prescribed
by the Secretary of Labor and Employment.
80% of basic salary – seamen and mariners;
70% - workers of Filipino contractors and construction
companies;
70% - doctors, engineers, teachers, nurses and other professional
workers whose employment contracts provide for free
board and lodging facilities;
50% - other professionals whose employment contracts do not
provide for free board and lodging;
50% - domestic helpers and other service workers; and
50% - other workers not falling under the aforementioned
categories.
EXCEPTIONS TO THE REMITTANCE:
a) Immediate family members, dependents and beneficiaries are
residing with him abroad;
b) Filipino servicemen working in U.S. military installations;
and
c) Immigrants and Filipino professionals and employees
working with the United Nations agencies.
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ART. 23. (Repealed by E.O. 797)
ART. 24. (Repealed by E.O. 247)
CHAPTER II
Regulation of Recruitment and Placement Activities
ART. 25. Private Sector Participation in the Recruitment
and Placement of Workers. — Pursuant to national
development objectives and in order to harness and
maximize the use of private sector resources and initiative in
the development and implementation of a comprehensive
employment program, the private employment sector shall
participate in the recruitment and placement of workers,
locally and overseas, under such guidelines, rules and
regulations as may be issued by the Secretary of Labor.
Recruitment and Placement of Employees for Local
Employment.
A private recruitment and placement agency for local
employment can engage in recruitment and placement only
under the following conditions:
(a) It must have a license to operate as a recruitment and
placement agency; and
(b) It must have an authority to engage in recruitment activities
in a particular region.
Apart from the license, a private employment agency for local
employment is obliged to secure an authority to recruit
workers within a particular region.
Recruitment and Placement of Employees for Overseas
Employment.
A. For Land-Based Overseas Employment
(a) It should have a license to operate; and
(b) It should recruit and place workers only for registered
and accredited principals by the POEA.
B. For Overseas Maritime Employment
(a) It should have a license to operate; and
(b) It should recruit and place workers only for registered
and accredited principals by the POEA.
(c) The vessels are enrolled with the POEA.
Duration of License:
Provisional License – One (1) year
Private Employment Agency – Two (2) years starting from the
date of issuance and valid all over the Philippines.
Foreign Private Employment Agency – Four (years) years.
Renewal of License:
- Must be renewed within thirty (30) days before its
expiration. It must be renewed on or before it expiration.
- Renewal of license will not be allowed if:
(a) The agency has been convicted by the regular courts
for violation of the Labor Code; or
(b) The agency’s license has been previously revoked.
PROVISIONAL LICENSE – is a permit issued to a new
recruitment or manning agency for a limited period of one (1)
year, within which the period, the agency shall comply with its
undertaking to deploy one hundred land-based workers or
fifty seafarers to its new market. Non compliance will result in
expiration of the provisional license.
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 LABOR STANDARDS (Atty. Paulino Ungos)
Advertisement for Overseas Jobs.
A. For Actual Job Vacancies – Licensed employment or
manning agencies may advertise for actual job vacancies
without prior approval from the POEA, if covered by
manpower requests by registered/accredited foreign principals
and projects.
B. For Manpower Pooling – Licensed employment agencies
may advertise for manpower pooling without prior approval
from the POEA under the following conditions:
(a) The advertisement should indicate in bold letters that it is for
manpower pooling only and that no fees will be collected; and
(b) The advertisement indicates the name, address and POEA
license number of the agency, name of worksite of the
prospective registered/accredited principal and skill categories
and qualification standards, in case of land-based workers; or the
name, address and POEA license number of the agency, name of
the ship and skill categories and qualificiation standards, in case
of seafarers.
Period to Deploy an Overseas Worker or Seafarer
Within sixty (60) days from the date of issuance of the overseas
employment certificate.
Minimum Provisions for Employment Contracts of Land-
Based Workers
(a) Guaranteed Wages whichever is highest;*
(b) Free transportation to and from worksite;
(c) Free food and accommodation, or offsetting benefit;
(d) Just/authorized causes for termination of the contract;
(e) Other matters to be considered by the POEA.
*Highest of the following:
a) Minimum wage in host country
b) Minimum wage according to a bilateral agreement of
international convention; or
c) Minimum wage in the Philippines
Repatriation of Workers and Seafarers
Gen. Rule: The repatriation of land-based workers or seafarers
and the transport of their personal belongings shall be the
primary responsibility of the agency which recruited or deployed
the worker or seafarer. All costs attendant to repatriation shall be
borne by the principal or agency concerned including the
repatriation of the remains and transport of the personal
belongings of the deceased worker or seafarer and all costs
attendant thereto.
Exception: If the termination of the employment is due to the
fault of the worker or seafarer, the principal or agency shall not
in any manner be responsible for his repatriation.
Without prior determination of the cause of termination of the
employment, the principal or agency shall advance the cost of
the plane fare. If it is later found that the termination is due to
the worker’s or seafarer’s fault, the principal or agency may
recover the cost of repatriation.
Solidary Liability of Recruitment or Manning Agency
The recruitment agency and foreign employer shall assume joint
and solidary liability for all claims and liabilities which may
arise in connection with the implementation of the contract,
including but not limited to payment of wages, death and
disability compensation and repatriations.
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Exceptions:
a) Workers themselves were the ones who persuaded the agency
to send them back abroad despite their knowledge that the
foreign employer might not be able to pay their wages;
b) When the workers were recruited by the supposed agency
without the latter’s consent.
Read: Feagle Const. Corp. vs. Gayda (page118)
ART. 26. Travel Agencies Prohibited to Recruit. — Travel
agencies and sales agencies of airline companies are
prohibited from engaging in the business of recruitment and
placement of workers for overseas employment whether for
profit or not.
Persons Disqualified From Engaging in Overseas
Recruitment:
(a) Travel agencies;
(b) Sales agencies of airline companies;
(c) Officers or members of the Board of any corporation or
members of a partnership engaged as a travel agency;
(d) Persons, partnerships or corporations which have:
(i) Derogatory records with the NBI, POEA;
(ii) Probable cause or prima facie evidence against them for
illegal recruitment;
(iii) Been convicted of illegal recruitment or crimes
involving moral turpitude; and
(iv) Their licenses revoked or cancelled.
(e) Any officer or employee of the DOLE, POEA, OWWA,
DFA, or other government agencies directly involved in the
implementation of R.A. No. 8042 or P.D. 442.
(f) Relatives within the fourth degree of consanguinity or
affinity of those officers mentioned in the preceding
number; and
(g) Persons, parthers, officers and directors or corporations
whose license has been revoked or cancelled for violation
of recruitment laws.
 ART. 27. Citizenship Requirement. — Only Filipino
citizens or corporations, partnerships or entities at least
sevent-five percent (75%) of the authorized and voting
capital stock of which is owned and controlled by Filipino
citizens shall be permitted to participate in the recruitment
and placement of workers, locally or overseas.
 ART. 28. Capitalization. — All applicants for authority
to hire or renewal of license to recruit are required to have
substantial capitalization as determined by the Secretary of
Labor.
LOCAL OVERSEAS
Single Proprietor
or Partnership
P200,000 P2,000,000
(Minimum Net
Worth)
Corporation
P500,000 P2,000,000
(Paid-up Capital)
 ART. 29. Non-transferability of License or Authority. —
No license or authority shall be used directly or indirectly by
any person other than the one in whose favor it was issued at
any place other than that stated in the license or authority be
transferred, conveyed or assigned to any other person or
entity. Any transfer of business address, appointment or
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 LABOR STANDARDS (Atty. Paulino Ungos)
designation of any agent or representative including the
establishment of additional offices anywhere shall be subject
to the prior approval of the Department of Labor.
Note:
- Cannot be used by those other than those in whose favour it
was issued
- Cannot be used at any place other than those stated
- Cannot be transferred, conveyed or assigned
- Any changes in the information in the license must be subject
to the approval of the Department of Labor
Effects to the license
Revoke – Death of a sole proprietor
Surrender – Change of ownership of local recruitment agency
Revoke - Change of ownership of overseas recruitment agency
Revoke – Dissolution of partnership
Revoke – Upgrading from single proprietorship or partnership to
corporation
ART. 30. Registration Fees. – The Secretary of Labor
shall promulgate a schedule of fees for the registration of all
applicants for license or authority.
Note:
Local – P5,000
Overseas – P50,000
 ART. 31. Bond. — Any applicant for license or authority
shall post such cash and surety bonds as determined by the
Secretary of Labor to guarantee compliance with the
prescribed recruitment procedures, rules and regulations,
and terms and conditions of employment as may be
appropriate.
Company posting the bond is still liable even if it is not included
as a party in the complaint.
Amount of Bond
LOCAL EMPLOYMENT:
Cash Bond – P25,000
Surety Bond – P100,000
OVERSEAS EMPLOYMENT
Escrow Deposit – P1,000,000
Surety Bond – P100,000
Appeal Bond
The bond required under Article 31 is different from the bond
required under Article 223 of the Labor Code. The bond under
the latter is a requirement for the perfection of an appeal. The
former is intended to insure the payment of monetary award in
the event that the judgment is affirmed on appeal.
Garnishment of Bonds
The bond under Article 31 is intended to answer only
employment-related claims and violations of labor laws.
Therefore, it cannot be garnished to satisfy a claim against a
recruitment agency that is not employment-related or does not
pertain to violations of labor laws.
Effect of a Valid Garnishment
As soon as an Order or Notice of Garnishment is served
upon the Bank, the deposit in escrow shall no longer be
considered sufficient. The POEA shall then serve the
recruitment or manning agency to replenish its escrow deposit.
Within 15 days from date of receipt of notice from the
POEA that the bonds or deposit in escrow, or any part of it had
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been garnished, the agency shall replenish the same. Failure to
replenish shall cause the suspension of the license.
 ART. 32. Fees to be Paid by Workers. – Any person
applying with a private fee-charging employment agency for
employment assistance shall not be charged any fee until he
has obtained employment through its efforts until he has
obtained employment through its efforts or has actually
commenced employment. Such fee shall be always covered
with the appropriate receipt clearly showing the amount
paid. The Secretary of Labor shall promulgate a schedule of
allowable fees.
Placement fees on workers:
LOCAL - not to exceed 20% of the worker’s first month’s basic
salary
OVERSEAS – equivalent to one month salary unless the host
country does not allow charging of placement fees
Service Fee
LOCAL – not to exceed 20% of the worker’s annual salary
OVERSEAS – chargeable against the principal
ART. 33. Reports on Employment Status. – Whenever the
public interest requires, the Secretary of Labor may direct
all persons or entities within the coverage of this Title to
submit a report on the status of employment, including job
vacancies, details of job requisitions, separation from jobs,
wages, other terms and conditions and other employment
data.
ART. 34. Prohibited Practices. — It shall be unlawful for
any individual, entity, licensee or holder of authority:
(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 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;
(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
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 LABOR STANDARDS (Atty. Paulino Ungos)
time of actual signing thereof by the parties up to and
including the period of expiration of the same without the
approval of the Secretary of Labor;
(j) To become 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;
(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.
ART. 35. Suspension and/or Cancellation of License or
Authority. — The Minister of Labor shall have the power to
suspend or cancel any license or authority to recruit
employees for overseas employment for violation of rules
and regulations issued by the Minister of Labor, the
Overseas Employment Development Board, or for violations
of the provisions of this and other applicable laws, General
Orders and Letters of Instructions.
CHAPTER III
Miscellaneous Provisions
ART. 36. Regulatory Powers. —The Secretary of Labor
shall have the power to restrict and regulate the recruitment
and placement activities of all agencies within the coverage
of this Title and is hereby authorized to issue orders and
promulgate rules and regulations to carry out the objectives
and implement the provisions of this Title.
ART. 37. Visitorial Power. – The Secretary of Labor or
his duly authorized representatives may, at any time, inspect
the premises, books of accounts and records of any person or
entity covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of any
provisions of this Title.
ART. 38. Illegale Recruiment. — (a) Any recruitment
activities, including the prohibited practices enumerated
under Article 34 of this Code, to be undertaken by non-
licensees or non-holders of authority, shall be deemed illegal
and punishable under Article 39 of this Code. The
Department of Labor and Employment or any law
enforcement officer may initiate complaints under this
Article.
(b) Illegal recruitment when committed by a syndicate
or in large scale shall be considered an offense involving
economic sabotage and shall be penalized in accordance with
Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate
if carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in
carrying out any unlawful or illegal transaction, enterprise
or scheme defined under the first paragraph hereof. Illegal
recruitment is deemed committed in large scale if committed
against three (3) or more persons individually or as a group.
(c) (declared unconstitutional)
Two types of illegal recruitment:
(a) The offender is not a holder of a license or authority and
engages in recruitment activities; or
(b) The offender is licensed and is engaged in recruitment
activities and has committed any prohibited practices under
Article 34 of the Labor Code or those enumerated in Section 6
of the Migrant Workers Act.
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Qualified Illegal Recruitment:
(a) Committed by a syndicate – carried out by a group of three
(3) or more persons conspiring or confederating with one
another in carrying out any illegal or unlawful recruitment
activity; or
(b) Committed in large scale – committed against three or more
persons, individually or as a group.
Qualified illegal recruitment is considered an offense involving
economic sabotage.
Illegal Recruitment and Estafa
A person who violates any of the provisions under Article 13(b)
and Article 34 of the Labor Code can be charged and convicted
separately of illegal recruitment and estafa because illegal
recruitment is a malum prohibitum where criminal intent is not
necessary for conviction, while estafa is a malum in se where
criminal intent is necessary for conviction.
Prescription of Action
3 years – Illegal recruitment cases under the Labor Code
5 years – Illegal recruitment cases covered by the Migrant
Workers Act
20 years – Cases involving economic sabotage
ART. 39. Penalties. - (a) The penalty of life
imprisonment and a fine of One Hundred Thousand Pesos
(P1000,000.00) shall be imposed if illegal recruitment
constitutes economic sabotage as defined herein;
(b) Any licensee or holder of authority found violating
or causing another to violate any provision of this Title or its
implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than
two years nor more than five years or a fine of not less than
P10,000 nor more than P50,000, or both such imprisonment
and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of
authority under this Title found violating any provision
thereof or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not
less than four years nor more than eight years or a fine of
not less than P20,000 nor more than P100,000 or both such
imprisonment and fine, at the discretion of the court;
(d) If the offender is a corporation, partnership,
association or entity, the penalty shall be imposed upon the
officer or officers of the corporation, partnership,
association or entity responsible for violation; and if such
officer is an alien, he shall, in addition to the penalties herein
prescribed, be deported without further proceedings;
(e) In every case, conviction shall cause and carry the
automatic revocation of the license or authority and all the
permits and privileges granted to such person or entity
under this Title, and the forfeiture of the cash and surety
bonds in favor of the Overseas Employment Development
Board or the National Seamen Board, as the case may be,
both of which are authorized to use the same exclusively to
promote their objectives.
Republic Act No. 8042
SECTION 7.Penalties. —
(a)Any person found guilty of illegal recruitment
shall suffer the penalty of imprisonment of not less
than six (6) years and one (1) day but not more than
twelve (12) years and a fine of not less than Two
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hundred thousand pesos (P200,000.00) nor more than activity in a state of which he or she is not a legal resident;
Five hundred thousand pesos (P500,000.00). to be used interchangeably with overseas Filipino worker.
(b)The penalty of life imprisonment and a fine of SEC. 6 ILLEGAL RECRUITMENT (under Migrant
not less than Five hundred thousand pesos Workers Act) – any act of canvassing, enlisting,
(P500,000.00) nor more than One million pesos contracting, transporting, utilizing, hiring, procuring
(P1,000,000.00) shall be imposed if illegal recruitment workers and includes referring, contact services, promising
constitutes economic sabotage as defined herein. or advertising for employment abroad, whether for profit or
not, when undertaken by a non-license or non-holder of
Provided, however, That the maximum penalty authority contemplated under Article 13(f) of Presidential
shall be imposed if the person illegally recruited is less Decree No. 442, as amended, otherwise known as the
than eighteen (18) years of age or committed by a non- Labor Code of the Philippines. Provided, that such non-
licensee or non-holder of authority. license or non-holder, who, in any manner, offers or
promises for a fee employment abroad to two or more
Notes:
persons shall be deemed so engaged.
Penalties involving local employment: Article 39
Penalties involving overseas employment: R.A. 8042 SEC. 10. MONEY CLAIMS - claims arising out of an
employer-employee relationship or by virtue of any law or
Article 39 R.A. 8042 contract involving Filipino workers for overseas
(Sec. 6) deployment including claims for actual, moral, exemplary
Imprisonment: Imprisonment: and other forms of damages.
- Life - Life
Economic SEC. 23. ROLE OF GOVERNMENT AGENCIES - The
Fine: Fine:
Sabotage following government agencies shall perform the following to
- P100,000 P500,000 to
P1,000,000 promote the welfare and protect the rights of migrant workers
Licensed: and, as far as applicable, all overseas Filipinos:
Imprisonment: (a) Department of Foreign Affairs. - The Department, through
- 2-5 years its home office or foreign posts, shall take priority action its
Fine: home office or foreign posts, shall take priority action or make
Imprisonment:
- P10,000 to representation with the foreign authority concerned to protect
- 6-12 years
Illegal P50,000 the rights of migrant workers and other overseas Filipinos and
Fine:
Recruitment Unlicensed: extend immediate assistance including the repatriation of
P200,000 to
Imprisonment: distressed or beleaguered migrant workers and other overseas
P500,000
- 4-8 years Filipinos;
Fine:
- P20,000 to (b) Department of Labor and Employment - The Department
P100,000 of Labor and Employment shall see to it that labor and social
Local Corp: welfare laws in the foreign countries are fairly applied to
Imposed upon the migrant workers and whenever applicable, to other overseas
officer responsible Filipinos including the grant of legal assistance and the referral
Committed for the violation to proper medical centers or hospitals:
by a juridical Alien/Foreign: (b.1) Philippine Overseas Employment Administration -
person Imposed upon the Subject to deregulation and phase out as provided under
officer responsible Sections 29 and 30 herein, the Administration shall regulate
for the violation with private sector participation in the recruitment and overseas
deportation placement of workers by setting up a licensing and registration
- Revocation of - If the person system. It shall also formulate and implement, in coordination
license or illegally with appropriate entities concerned, when necessary
authority recruited is employment of Filipino workers taking into consideration their
- Forfeiture of cash less than 18 welfare and the domestic manpower requirements.
and surety bonds years of age,
maximum (b.2) Overseas Workers Welfare Administration - The
Effects penalty Welfare Officer or in his absence, the coordinating officer shall
- Committed by provide the Filipino migrant worker and his family all the
a non-license assistance they may need in the enforcement of contractual
or non-holder obligations by agencies or entities and/or by their principals. In
of authority, the performance of this functions, he shall make representation
maximum and may call on the agencies or entities concerned to
penalty conferences or conciliation meetings for the purpose of settling
the complaints or problems brought to his attention.
IMPORTANT PROVISIONS OF THE MIGRANT
SEC. 28. COUNTRY-TEAM APPROACH - Under the
WORKERS ACT:
country-team approach, all officers, representatives and
SEC. 3(a). MIGRANT WORKER – a person who is to be personnel of the Philippine government posted abroad regardless
engaged, is engaged or has been engaged in a remunerated of their mother agencies shall, on a per country basis, act as one

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 LABOR STANDARDS (Atty. Paulino Ungos)
country-team with a mission under the leadership of the
ambassador. In this regard, the ambassador may recommend to
the Secretary of the Department of Foreign Affairs the recall of
officers, representatives and personnel of the Philippine
government posted abroad for acts inimical to the national
interest such as, but not limited to, failure to provide the
necessary services to protect the rights of overseas Filipinos.
Upon receipt of the recommendation of the ambassador, the
Secretary of the Department of Foreign Affairs shall, in the case
of officers, representatives and personnel of other departments,
endorse such recommendation to the department secretary
concerned for appropriate action. Pending investigation by an
appropriate body in the Philippines, the person recommended
for recall may be placed under preventive suspension by the
ambassador.
In host countries where there are Philippine consulates, such
consulates shall also constitute part of the country-team under
the leadership of the ambassador.
TITLE II
Employment of Non-Resident Aliens
ART. 40. Employment permit for non-resident aliens. —
Any alien seeking admission to the Philippines for
employment purposes and any domestic or foreign employer
who desires to engage an alien for employment in the
Philippines shall obtain an employment permit from the
Department of Labor.
The employment permit may be issued to a non-resident
alien or to the applicant employer after a determination of
the non-availability of a person in the Philippines who is
competent, able and willing at the time of application to
perform the services for which the alien is desired.
For an enterprise registered in preferred areas of
investments, said employment permit may be issued upon
recommendation of the government agency charged with the
supervision of said registered enterprise.
Q: Who are required to obtain employment permit?
A: Non- resident aliens seeking admission in the Philippines for
employment and any domestic of foreign employer who desires
to engage and alien for employment.
Q: What is the minimum age of employment:
A: For apprenticeship or learners, 15 years old. For overseas
employment, not less than 18 years of age.
Q: What are the grounds for the cancellation of Alien
Employment Permit?
A: (a) Non-compliance with the conditions of the permit;
(b) Misrepresentation of facts in the application;
(c) Submission of falsified or tampered documents;
(d) Meritorious objection or information against the employment
of the foreign national;
(e) Foreign national has a derogatory record; and
(f) Employer terminated his employment.
Remedies in Case of Suspension, Cancellation or Revocation
of Alien Employment Permit
File a Motion for Reconsideration within seven (7) calendar
days from the receipt of Suspension, Cancellation or Revocation
order with the Regional Director.
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After the lapse of seven calendar days and before ten days, the
action is considered to be for an appeal.
File an appeal with the Secretary of Labor within ten (10)
calendar days from receipt of such Order.
The decision of the Secretary of Labor is final and unappealable
unless there is an abuse of discretion amounting to lack or
excess of jurisdiction.
ART. 41. Prohibition Against Transfer of Employment. —
(a) After the issuance of an employment permit, the alien
shall not transfer to another job or change his employer
without prior approval of the Secretary of Labor.
(b) Any non-resident alien who shall take up
employment in violation of the provision of this Title and its
implementing rules and regulations shall be punished in
accordance with the provisions of Articles 289 and 290 of the
Labor Code.
In addition, the alien worker shall be subject to
deportation after the service of his sentence.
ART. 289. Closur of Establishment and
Reduction of Personnel. – The employer may also
terminate the employment of any employee due to the
installation of labor-saving devices, redundancy,
retrenchment to prevent losses or the closing or
cessation of operation of the establishment or
undertaking unless the closing is for the purpose of
circumventing the provisions of this Title, by serving a
written notice on the workers and the Miniter of Labor
and Employment at least one (1) month before the
intended date thereof. In case of termination due to the
installation of labor-saving devices or redundancy, the
worker affected thereby shall be entitled to a
separation pay equivalent to at least one (1) month pay
or to at least one (1) month pay for every year of
service, which is higher. In case of retrenchment to
prevent losses in cases of closures or cessation of
operations of establishment or undertaking not due to
serious business losses or financial reverses, the
separation pay shall be equivalent to one (1) month
pay or atleast one-half (1/2) month pay for every year
of service, whichever is higher. A fraction of at least
six (6) months shall be considered one (1) whole year.
ART. 290. Disease as Grounds for Termination.
– An employer may terminate the services of an
employee who has been foun to be suffering from any
disease and whose continued employment is
prohibited by law or is prejudicial to his health as well
as to the health of his co-employees: Provided, That
he has paid separation pay equivalent to at least one
(1) month salary or to one-half (1/2) month salary for
every year of service, whichever is greater, a fraction
of at least six (6) months being considered as one (1)
whole year.
ART. 42. Submission of List. — Any employer employing
non-resident foreign nationals on the effective date of this
Code shall submit a list of such nationals to the Secretary of
Labor within thirty (30) days after such date indicating their
names, citizenship, foreign and local addresses, nature of
employment and status of stay in the country. The Secretary
of Labor shall then determine if they are entitled to an
employment permit.
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BOOK TWO
Human Resources Development
TITLE I
National Manpower Development Program
CHAPTER I
National Policies and Administrative Machinery for their
Implementation
NOTE: Articles 43 to 56 (Superseded by R.A. No. 7796 or
Technical Educational and Skills Development (TESDA) Act of
1994)
DUAL TRAINING SYSTEM – is an instructional delivery
system of technical and vocational education and training that
combines in-plant training and in-school training.
TITLE II
Training and Employment of Special Workers
CHAPTER I
Apprenticeship
ART. 57. Statement of Objective. — This Title aims:
(1) To help meet the demand of the economy for
trained manpower.
(2) To establish a national apprenticeship program
through the participation of employers, workers, and
government and non-government agencies.
(3) To establish apprenticeship standards for the
protection of apprentices.
 ART. 58. Definition of Terms. — As used in this Title:
(a) "Apprenticeship" means practical training on the
job supplemented by related theoretical instruction.
(b) An "apprentice" is a worker who is covered by a
written apprenticeship agreement with an individual
employer or any of the entities recognized under this
Chapter.
(c) An "apprenticeable occupation" means any trade,
form of employment or occupation which requires more
than three (3) months of practical training on the job
supplemented by related theoretical instruction.
(d) "Apprenticeship agreement" is an employment
contract wherein the employer binds himself to train the
apprentice and the apprentice in turn accepts the terms of
training.
REQUISITES:
1) A highly technical industry; and
2) Approved apprenticeable occupation.
PERIOD:
Not less than 3 months but not more than 6 months
ART. 59. Qualifications of Apprentice. — To qualify as an
apprentice, a person shall:
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for
appropriate tests; and
(c) Possess the ability to comprehend and follow oral
and written instructions.
Trade and industry associations may recommend to the
Secretary of Labor appropriate educational requirements
for different occupations.
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REQUISITES:
(a) At least 14 years of age;
(b) Possess vocational aptitude and capacity for appropriate test;
(c) Posses the ability to comprehend and follow oral and written
instructions; and
(d) Physically fit
ART. 60. Employment of Apprentices. — Only employers
in the highly technical industries may employ apprentices
and only in apprenticeable occupations approved by the
Secretary of Labor and Employment.
REQUISITES FOR APPRENTICE EMPLOYMENT:
1) The employer should be engaged in a business that is
considered a highly technical industry;
2) The job to which the apprentice will work on should be
classified as and apprenticeable occupation.
ART. 61. Contents of Apprenticeship Agreements. —
Apprenticeship agreements including wage rates of
apprentices, shall conform to the rules issued by the
Secretary of Labor and Employment. The period of
apprenticeship shall not exceed 6 months. Apprenticeship
agreements providing for wage rates below the legal
minimum wage, which in no case shall start below 75
percent of the applicable minimum wage, may be entered
into only in accordance with apprenticeship programs duly
approved by the Secretary of Labor and Employment. The
Department shall develop standard model programs of
apprenticeship.
Q: What is the minimum compensation for apprentices?
A: Not less than 75% of the statutory minimum wage. However,
the employer may pay for a higher wage.
GROUNDS FOR TERMINATION OF APPRENTICE
PROGRAM BY THE EMPLOYER: (P2HWET)
1) Poor efficiency;
2) Poor physical condition;
3) Habitual absenteeism;
4) Willful disobedience;
5) Engaging in violence; and
6) Theft
GROUNDS FOR TERMINATION OF APPRENTICE
PROGRAM BY THE APPRENTICE:
(Bull Shit ang Revised Penal Code)
1) Bad health or continuing illness;
2) Substandard working conditions;
3) Repeated violations of the apprenticeship agreement by the
employer;
4) Personal problems which will prevent performance;
5) Cruel and inhuman treatment.
ART. 62. Signing of Apprenticeship Agreement. — Every
apprenticeship agreement shall be signed by the employer or
his agent, or by an authorized representative of any of the
recognized organizations, associations or groups, and by the
apprentice.
An apprenticeship agreement with a minor shall be
signed in his behalf by his parent or guardian or, if the latter
is not available, by an authorized representative of the
Department of Labor, and the same shall be binding during
its lifetime.
Every apprenticeship agreement entered into under this
Title shall be ratified by the appropriate apprenticeship
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 LABOR STANDARDS (Atty. Paulino Ungos)
committees if any, and a copy thereof shall be furnished both
the employer and the apprentice.
ART. 63. Venue of Apprenticeship Programs. — Any
firm, employer group of association, industry organization
or civic group wishing to organize an apprenticeship
program may choose from any of the following
apprenticeship schemes as the training venue for
apprentices:
(a) Apprenticeship conducted entirely by and within
the sponsoring firm, establishment or entity;
(b) Apprenticeship entirely within a Department of
Labor training center or other public training institution; or
(c) Initial training in trade fundamentals in a training
center or other institution with subsequent actual work
participation within the sponsoring firm or entity during the
final stage of training.
ART. 64. Sponsoring of Apprenticeship Program. — Any
of the apprenticeship schemes recognized herein may be
undertaken or sponsored by a single employer or firm or by
a group or association thereof, or by a civic organization.
Actual training of apprentices may be undertaken:
(a) In the premises of the sponsoring employer in the
case of individual apprenticeship programs;
(b) In the premises of one or several designated firms
in the case of programs sponsored by a group or association
of employers or by a civic organization; or
(c) In a Department of Labor training center or other
public training institution.
ART. 65. Investigation of Violation of Apprenticeship
Agreement. — Upon complaint of any interested person or
upon its own initiative, the appropriate agency of the
Department of Labor or its authorized representative shall
investigate any violation of an apprenticeship agreement
pursuant to such rules and regulations as may be prescribed
by the Secretary of Labor and Employment.
ART. 66. Appeal to the Secretary of Labor. — The
decision of the authorized agency of the Department of
Labor and Employment may be appealed by any aggrieved
person to the Secretary of Labor within five (5) days from
receipt of the decision. The decision of the Secretary of
Labor shall be final and executory.
Note: Appeal for illegal recruitment (7 calendar days); Appeal
for violation of apprenticeship agreement (5 calendar days).
Though the Code states that the decision of the Secretary shall
be final and executor, aggrieved party may elevate the matter in
court by way of Petition for Certiorari to the Supreme Court for
issues involving grave abuse of discretion amounting to lack or
abuse of jurisdiction. According to Rule 43 Section 2 of the
Rules of Court which states: “This Rule shall not apply to
judgments or final orders issued under the Labor Code of the
Philippines.”
ART. 67. Exhaustion of Administrative Remedies. — No
person shall institute action for the enforcement of any
apprenticeship agreement, or damages for breach of any
such agreement, unless he has exhausted all available
administrative remedies.
ART. 68. Aptitude Testing of Applicants. — Consonant
with the minimum qualifications of apprentice-applicants
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required under this Chapter, employers or entities with duly
approved apprenticeship programs shall have primary
responsibility for providing appropriate aptitude tests in the
selection of apprentices. If they do not have adequate
facilities for the purpose, the Department of Labor and
Employment shall perform the service free of charge.
ART. 69. Responsibility for Theoretical Instruction. —
Supplementary theoretical instruction to apprentices in
cases where the program is undertaken in the plant may be
done by the employer. If the latter is not prepared to assume
the responsibility, the same may be delegated to an
appropriate government agency.
RATIO: 100 hours of theoretical instructions for every 2,000
hours of practical or on-the-job training.
ART. 70. Voluntary Organization of Apprenticeship
Programs; Exceptions. — (a) The organization of
apprenticeship programs shall be primarily a voluntary
undertaking of employers;
(b) When national security or particular requirements
of economic development so demand, the President of the
Philippines may require compulsory training of apprentices
in certain trades, occupations, jobs or employment levels
where shortage of trained manpower is deemed critical as
determined by the Secretary of Labor and Employment.
Appropriate rules in this connection shall be promulgated
by the Secretary of Labor and Employment as the need
arises; and
(c) Where services of foreign technicians are utilized
by private companies in apprenticeable trades, said
companies are required to set up appropriate apprenticeship
programs.
ART. 71. Deductibility of Training Costs. — An
additional deduction from taxable income of one-half (1/2) of
the value of labor training expenses incurred for developing
the productivity and efficiency of apprentices shall be
granted to the person or enterprise organizing an
apprenticeship program: Provided, That such program is
duly recognized by the Department of Labor and
Employment; Provided Further, That such deduction shall
not exceed 10% of direct labor wage; and Provided Finally,
That the person or enterprise who wishes to avail himself or
itself of this incentive should pay his apprentices the
minimum wage.
ART. 72. Apprentices Without Compensation. — The
Secretary of Labor and Employment may authorize the
hiring of apprentices without compensation whose training
on the job is required by the school or training program
curriculum or as a requisite for graduation or board
examination.
Q: Is an employer required to compensate an apprentice?
A: Generally yes, with atleast 75% of the statutory minimum
wage. However, if the apprentice ship is required by the school
or training program, or a requisite for graduation or board
examination, an employer may NOT pay the apprentice any
compensation if he elects to do so.
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 LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

CHAPTER II ART. 76. Learners in Piece Work. — Learners employed

Learners in piece or incentive rate jobs during the training period
shall be paid in full for the work done.
ART. 73. Learners Defined. — Learners are persons
hired as trainees in semi-skilled and other industrial ART. 76. Penalty Clause. — Any violation of this
occupations which are non-apprenticeable and which may Chapter or its implementing rules and regulations shall be
be learned through practical training on the job in a subject to the general penalty clause provided for in this
relatively short period of time which shall not exceed three Code. DSITEH
(3) months.
CHAPTER III
Apprentices Learners
Hired for apprenticeable Hired for non-apprenticeable Handicapped Workers
occupation occupations ART. 78. Definition. — Handicapped workers are those
Theoretical instruction Theoretical instruction is not whose earning capacity is impaired by age or physical or
required necessary mental deficiency or injury.
Should not exceed 6 mos. Should not exceed 3 mos.
At least 14 years of age Persons below 15 years of age DEFINITION: The term handicap means handicap in terms of
cannot be hired as learners; earning capacity, not physical handicap. (API)
If between 15 and 18 years of
1) Impaired by age;
age, can only be employed in
2) Impaired by physical or mental deficiency; and
non-hazardous occupations.
3) Injury
At least 75% of the statutory At least 75% of the statutory
minimum wage, unless it is a minimum wage. ART. 79. (Superseded by R.A. No. 7277 or Magna Carta
school requirement or for the of Disabled Persons)
board exams, the employer is
not required to pay. Section 32 of the Magna Carta prohibits discrimination against
disabled persons in regard to hiring, promotion and other terms
ART. 74. When Learners May be Hired. — Learners may and conditions of employment.
be employed when no experienced workers are available, the
ART. 80. Employment Agreement. — Any employer who
employment of learners is necessary to prevent curtailment
employs handicapped workers shall enter into an
of employment opportunities, and the employment does not
employment agreement with them which agreement shall
create unfair competition in terms of labor costs or impair
include:
or lower working standards.
(a) The names and addresses of the handicapped
Conditions for Employment of Learners: (PUSÉ) workers to be employed;
1) The job is semi-skilled or non apprenticeable; (b) The rate to be paid the handicapped workers which
2) No available experienced workers; shall be not less than seventy-five per cent (75%) of the
3) Necessary to prevent curtailment of employment applicable legal minimum wage;
opportunities; and (c) The duration of employment period.
4) It will not create unfair competition.
(d) The work to be performed by handicapped workers.
Age Requirement: The employment agreement shall be subject to
Below 15: absolutely prohibited to be hired as learner inspection by the Secretary of Labor or his duly authorized
Below 18: only in non-hazardous occupations representatives.
ART. 75. Learnership Agreement. — Any employer ART. 81. Eligibility for Apprenticeship. — Subject to the
desiring to employ learners shall enter into a learnership appropriate provisions of this Code, handicapped workers
agreement with them, which agreement shall include: may be hired as apprentices or learners if their handicap is
(a) The names and addresses of the learners; not such as to effectively impede the performance of job
(b) The duration of the learnership period, which shall operations in the particular occupations for which they are
not exceed three (3) months; hired.
(c) The wages or salary rates of the learners which
shall begin at not less than seventy-five per cent (75%) of the DISCUSSION:
applicable minimum wage; and The law does not prohibit the hiring of handicapped workers so
(d) A commitment to employ the learners, if they so long as their handicap does not effectively impede the
desire, as regular employees upon completion of the performance of job operations.
learnership. All learners, who have been allowed or suffered
If the disabled person is engaged as an apprentice or learner, he
to work during the first two (2) months shall be deemed
is entitled to the applicable compensation for apprentices and
regular employees if training is terminated by the employer
learners of atleast 75% of the statutory minimum wage.
before the end of the stipulated period through no fault of
the learner. If the disabled person was not hired as an apprentice, then he is
The learnership agreement shall be subject to entitled to the terms and conditions of employment to able-
inspection by the Secretary of Labor and Employment or his bodied employees. (Bernardo vs. NLRC) Hence, they have the
duly authorized representative. right to be compensated the full amount of remuneration similar
to those able-bodied employees.

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 LABOR STANDARDS (Atty. Paulino Ungos)
Q: What are the minimum standards in the payment of
apprenctices, learners and handicapped or disabled persons,
respectively?
A: (1) For apprentices, 75% of the statutory minimum wage; (2)
For learners, 75% of the statutory minimum wage unless the
hiring of learners is a requirement for graduation or board
examinations in which case, no remuneration is required; and (3)
For disabled or handicapped workers, applicable minimum
wage.
BOOK THREE
Conditions of Employment
TITLE I
Working Conditions and Rest Periods
CHAPTER I
Hours of Works
ART. 82. Coverage. — The provisions of this Chapter
shall apply to employees in all establishments and
undertakings, whether for profit or not, but not to
government employees, managerial employees, field
personnel, members of the family of the employer who are
dependent upon him for support, domestic helpers, persons
in the personal service of another, and workers who are paid
by results as determined by the Secretary of Labor in
appropriate regulations.
 As used herein, "managerial employees" refer to those
whose primary duty consists of the management of the
establishment in which they are employed or of a
department or subdivision thereof, and to other officers or
members of the managerial staff.
"Field personnel" shall refer to non-agricultural
employees who regularly perform their duties away from the
principal place of business or branch office of the employer
and whose actual hours of work in the field cannot be
determined with reasonable certainty.
The following are not entitled to:
- Overtime pay;
- Premium pay for holidays and rest days;
- Night shift differential;
- Holiday pay;
- Service incentive leaves; and
- Service charges.
Those employees are not entitled:
(1) Government employees;*
(2) Managerial employees;
(3) Officers and members of the managerial staff;
(4) Field personnel;
(5) Members of the family of the employer who are dependent
upon him for support;
(6) Domestic helpers insofar as rest day and service incentive
leave is concerned;
(7) Persons in the personal service of another; and
(8) Workers paid by results.
*includes employees of GOCC’s with special charters not
those GOCC’s registered under the Corporation Law.
A. Managerial Employee (Conditions):
(a) His primary duty consists in the management of the
establishment in which they are employed or in the
management of a department or subdivision thereof;
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(b) He customarily and regularly directs the work of two or
more employees therein; and
(c) He has the authority to hire or fire other employees of
lower rank; or his suggestions and recommendations as to
hiring, firing, promotion and other personnel movements
are given weight.
B. Officers or Members of Managerial Staff (Duties and
Responsibilities):
(a) Their primary duty consist in the performance of work
directly related to management policies of their employer;
(b) They customarily and regularly exercise discretion and
independent judgment;
(c) They regularly and directly assist a proprietor or a
managerial employee whose primary duty consist of the
management of the establishment in which he is employed
or a subdivision thereof; or they execute under general
supervision, work, along specialized or technical lines
requiring special training, experience or knowledge; or they
execute under general supervision special assignments and
tasks; and
(d) They do not devote more than 20% of their hours worked
in a workweek to activities which are not directly and
closely related to the performance of the work described
above.
C. Field Personnel:
(a) They regularly perform their duties away from the principal
place of business (or branch office) of the employer; and
(b) Their actual hours of work cannot be determined with
reasonable certainty.
Exception: Where the employee is constantly supervised.
Hence, he shall be entitled to the benefits mentioned above.
D. Family Members:
- Husband and wife;
- Parents and children;
- Other ascendants and descendants; and
- Brothers and sisters, whether full or half-blood.
Cousins, parents-in-law or children-in-law are not included.
Important: Must be dependent on the employer for support.
Reason: The employer already takes care of the sustenance,
dwelling, clothing, medical attendance or education of that
particular member of the family.
E. Domestic Helpers:
Refers to any person, whether male or female, who renders
service in and about the employer’s home on an activity which
are usually necessary or desirable for the maintenance and
enjoyment of the employer and ministers exclusively to the
personal comfort and enjoyment of the family. Drivers not
included. Domestic helpers are entitled to rest day and service
incentive leave.
F. Persons in the Personal Service of Another:
Those who minister to the personal comfort, convenience or
safety of the employer as well as the members of the employer’s
household. Examples are personal bodyguards, private nurses
and drivers.
G. Workers Paid by Results:
Those who are paid on piece-work, takay, pakiao, or task basis.
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 LABOR STANDARDS (Atty. Paulino Ungos)
Important: Their output should be fixed in accordance with the
standards and procedures of the Rules Implementing the Labor
Code.
ART 83. Normal Hours of Work. — The normal hours of
work of any employee shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a
population of at least one million (1,000,000) or in hospitals
and clinics with a bed capacity of at least one hundred (100)
shall hold regular office hours for eight (8) hours a day, for
five (5) days a week, exclusive of time for meals, except
where exigencies of the service require that such personnel
work for six (6) days or forty-eight (48) hours, in which case,
they shall be entitled to an additional compensation of at
least thirty percent (30%) of their regular wage for work on
the sixth day. For purposes of this Article, “health
personnel" shall include resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers,
laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other hospital or
clinic personnel.
Q: What is the maximum number of hours of work under
normal conditions?
A: Eight (8) hours in a day for five (5) consecutive days
exclusive of time for meals.
Q: What do you mean by the term “day?”
A: It refers to the 24-hour period commencing from the time the
employee regularly starts work.
Q: What is the maximum number of hours of work when
there are exigent circumstances?
A: An employee may be required to work for six (6) days or
forty-eight (48) hours. Provided, he be compensated with an
additional compensation of at least 30% of their regular wage
for work on the 6th day.
The eight hour work need not be continuous. It may be
staggered as long as the 8 hours falls within the 24-hour period.
Work in excess of eight hours is overtime service.
Q: May an employer force and employee to render work?
A: Generally no, because it would amount to involuntary
servitude, unless there are exigent or emergency situations.
Q: What are these exigent or emergency situations?
A: Under Article 89 of the Labor Code, these are: (ULPIaNO)
(1) National emergencies or war;
(2) To prevent Loss to life or property;
(3) There is Imminent danger to public safety;
(4) There is Urgent work to be performed on machines,
installations or equipment;
(5) To prevent loss or damage to Perishable goods; and
(6) To prevent serious Obstruction to the business or operations.
Q: What is a compressed work week?
A: An instance where an employer and employee agree to
prolong the normal hours of work from Monday to Friday in
exchange for elimination of Saturday work without obligating
the employer to pay overtime compensation.
Q: You say, the employer and employee agree, is this
agreement valid?
A: Yes, the agreement is valid. Provided, the following
conditions concur:
1) The work hours from Monday to Friday is 9 hrs;
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2) No diminution in the weekly or monthly take-home pay and
fringe benefits;
3) The benefits that will accrue is more than, or commensurate
with or equal to, the one-hour overtime pay that is due them
during weekdays;
4) The 1-hour overtime pay of the of the employees will
become due and demandable if they are permitted to work
on a Saturday;
5) The work does not involve strenuous physical exertion; and
6) Only for a temporary duration.
Q: What is the “Right to Vary?”
A: It is the right given to a solo parent employee to vary his or
her arrival or departure time without affecting (1) the core work
hours as defined by the employer and (2) individual and
company productivity.
Q: Who is a solo parent?
A: A solo parent is any individual who, under R.A. 8972 or Solo
Parents Welfare Act, falls under any of the following categories:
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
a. death of spouse;
b. detention or service of sentence of spouse for a criminal
conviction for at least one (1) year;
c. physical and/or mental incapacity of spouse;
d. 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;
e. 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;
f. abandonment of spouse for at least one (1) year;
3) 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;
4) Any other person who solely provides parental care and
support to a child or children; and
5) 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.
 ART. 84. Hours worked. — Hours worked shall include
(a) all time during which an employee is required to be on
duty or to be at a prescribed workplace; and (b) all time
during which an employee is suffered or permitted to work.
Rest periods of short duration during working hours
shall be counted as hours worked.
Three Principles in Determining Hours Worked:
First. All hours which the employee is required to give his
employer are hours worked, regardless of whether or not such
hours are spent in productive labor or involve physical or mental
exertion.
Second. If the work performed was necessary or it benefitted the
employer, or the employee could not abandon his work at the
end of his normal working hours because he had no
replacement, all the time spent for such work shall be considered
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 LABOR STANDARDS (Atty. Paulino Ungos)
as hours worked, if the work was done with the knowledge of
his employer or immediate supervisor.
Third. The time during which an employee is inactive by reason
of interruptions in his work beyod control shall be considered as
hours worked if the imminence of the resumption of work
requires the employee’s presence at the place of work or if the
interval is too brief to be utilized effectively in the employee’s
own interest.
FIRST PRINCIPLE:
Q: When an employee is engaged to wait, is the time spent
waiting included as hours worked? Why?
A: Yes, because he is unable to effectively use the time spent for
waiting for his own purpose such as a driver or fireman.
Waiting to be engaged? No, because the his time is not yet
controlled by the employer, he is considered, not yet engaged.
Hence, the employee can effectively use such time.
On call time? Yes, if he is not required to leave word at his
home or he is required to inform his employer where he can be
reached. If he is not required to do such duties, No.
Assembly time? If subject to absolute control by the employer,
Yes.
Travel Time? Yes, if the employee deviated from his normal
route to or from work to render some order from employer.
(Read: Rada vs. NLRC, lumabas sa midterms)
Attendance in lectures, meetings or training programs? No,
if all the following are present:
(a) Attendance is voluntary;
(b) Attendance is outside the employee’s regular work hours;
and
(c) The employee does not do any productive work during
such attendance.
Semestral Break? If the teachers cannot use the break
effectively for their own interest and continue to work during
this short recess, No.
SECOND PRINCIPLE:
Note: What is essential is knowledge (not approval) by the
employer or immediate supervisor about the rendition of work.
Even if there is a standing order from the employer that before
rendering work, approval should be secured, any overtime work
rendered without such approval is still compensable if the
employer or his managerial staff had knowledge about the
rendition of work.
THIRD PRINCIPLE:
Q: During brownouts, is it considered hours of work?
A: If the brownouts are of short duration not exceeding 20
minutes, are considered hours of work, whether used
productively by the employee or not.
Q: What if it exceeds 20 minutes?
A: Generally, it is not considered hours of work. But if the
employees can leave their workplace or when the employee can
use the time effectively for his own interest, then, it shall be
considered hours of work.
Q: Are rest period considered hours of work?
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A: Rest periods running from 5 to 20 minutes are considered
hours of work. If it exceeds 20 minutes, then it shall not be
considered hours worked.
Q: Does the employee need to leave the premises in order
that his time will not be considered as hours worked?
A: No. It is enough that he stops working, may rest completely
and may leave his workplace, go elsewhere, whether within or
outside the premises.
Seamen: It being enough that he “cease to work,” may rest
completely and leave or may leave at will the spot where he
actually stays while working, to go somewhere else, whether
within or outside the premises of the said factory, shop or boat.
The criterion for determining whether or not seamen are entitled
to compensation is not whether they were on board and cannot
leave the ship beyond the regular eight working hours a day but
whether they actually rendered service in excess of eight hours a
day.(for a more detailed discussion, read p. 291)
 ART. 85. Meal periods. — Subject to such regulations as
the Secretary of Labor may prescribe, it shall be the duty of
every employer to give his employees not less than sixty (60)
minutes time-off for their regular meals.
Duration: 60mins.
Q: Can be the meal period shortened?
A: Yes, but it should be at least 20 minutes and under certain
circumstances.
Q: What are these circumstances?
A: (Impending 16 PUNs) (1) Where the work is non-manual in
nature or does not involve strenuous physical exertion; (2)
Where the establishment operates not less than 16 hours a day;
(3) In case of actual impending emergencies; (4) There is urgent
work to be performed on machineries, equipment or installation;
or (5) It is necessary to prevent serious loss of perishable goods.
Q: Is the meal period compensable?
A: If for less than 20 minutes, yes. If it lasts for 1 hour or more,
it is no longer considered part of hours worked, UNLESS the
employee is not completely discharged during the 1 hour period.
Q: How about coffee breaks?
A: As long as it does not exceed 20 minutes, it is considered
hours worked.
ART. 86. Night-Shift Differential. – Every employee shall
be paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock in the
morning.
Notes: From 10:00 PM to 6:00 AM; Those earned by way of
night-shift differential is not part of the premium pay.
Rate: Additional 10% of his regular wage.
Note: Lahat to additional.
Night-Shift Differential – 10%
Overtime during regular day – 25%
Overtine during Regular Holiday – 30%
Restday – 20%
Special Holiday – 20%
Regular Holiday – 100%`
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 LABOR STANDARDS (Atty. Paulino Ungos)
Computation Procedure:
Ganito lang yan... madali lang promise!
a. Regular Pay (RP) = Regular Pay (anu pa ba?)
b. Premium Pay (PP) = Regular pay times Holiday/Restday
Percentage
c. Regular Pay Rate (R.R.) = RP divided by 8hrs
d. Premium Pay Rate (P.R.) = PP divided by 8hrs
e. Regular Overtime Rate (R.O.R.) = R.R. x OT Percentage
f. Premium Overtime Rate (P.O.R.) = P.P.R. x OT Percentage
g. Regular Nightshift Rate (R.N.R.) = R.R. x NS Differential
h. Premium Nightshift Rate (P.N.R.) = P.R. x NS Differential
Panu ngayon pag pumasok sa nightshift yung overtime?
i. Regular Overtime Nightshift Rate (R.O.N.) = R.O.R. x NSD
j. Premium Overtime Nightshift Rate (P.O.N.) = P.O.R. x
NSD
Now you have all the values diba?
Multiply each value with the number of hours na pasok siya.
I-add mo lahat!
Tapos! Dali diba?
Employees not entitled to night-shift differential.
All those mentioned in Article 82, except Members of the family
of the employer is not included.
ART. 87. Overtime work. — Work may be performed
beyond eight (8) hours a day provided that the employee is
paid for the overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-five
percent (25%) thereof. Work performed beyond eight hours
on a holiday or rest day shall be paid an additional
compensatin equivalent to the rate of the first eight hours on
a holiday or rest day plus at least thirty percent (30%)
thereof.
OVERTIME RATES:
25% for Regular Day
30% for Holiday or Rest Day
Work rendered during rest days is called rest day work while
work rendered during holidays is holiday work.
Q: Can overtime pay be waived?
A: No because it is against public policy. What you can waive is
your right to claim what you earned, what you cannot waive is
the right to be compensated for overtime work. “What is being
waived or compromised is not the right overtime pay but the
claim for unpaid (uncollected) overtime compensation.” – Atty.
Ungos
ART. 88. Undertime Not 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 in some other day of the week shall
not exempt the employer from paying the additional
compensation required in this Chapter.
Sorry, inaantok na ako kaya nagtatagalog na ako.. Basta di
pwedeng “O, umuwi ka na ng 2pm kahit tapos ng trabaho mo
5pm basta bukas hanggang 8pm ka.” Pag ganun, kung
pinayagan ka magundertime, swerte mo. Pero pag-nagovertime
ka para bumawi si in-undertime mo, babayaran ka pa rin
overtime compensation.
COMPRESSED WORK WEEK:
1) Majority of the employees consent to it;
2) Agreement between the employer and employees is put in
writing;
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3) Clearance from health agency; and
4) Approved by the Secretary of Labor.
ART. 89. Emergency Overtime Work. — Any employee
may be required by the employer to perform overtime work
in any of the following cases:
(a) When the country is at war or when any other
national or local emergency has been declared by the
National Assembly or the Chief Executive;
(b) When it is necessary to prevent loss of life or
property or in case of imminent danger to public safety due
to an actual or impending emergency in the locality caused
by serious accidents, fire, flood, typhoon, earthquake,
epidemic, or other disaster or calamity;
(c) When there is urgent work to be performed on
machines, installation, or equipment, in order to avoid
serious loss or damage to the employer of some other cause
of similar nature;
(d) When the work is necessary to prevent loss or
damage to perishable goods; and
(e) Where the completion or continuation of the work
started before the eighth hour is necessary to prevent serious
obstruction or prejudice to the business or operation of the
employer.
Any employee required to render overtime work under
this Article shall be paid the additional compensation
required in this Chapter.
(1) War or Emergency Situations
(2) Disaster or Calamity
(3) Urgent Repairs
(4) Preservation of Perishable Goods
(5) Completion of Work
(6) Take Advantage of Favorable Weather Conditions
ART. 90. Computation of Additional Compensation. —
For purposes of computing overtime and other additional
remuneration as required by this Chapter, the "regular
wage" of an employee shall include the cash wage only,
without deduction on account of facilities provided by the
employer.
“Regular Wage” is confined to the cash wage only.
Cash benefits are not enjoyed with regularity and continuity do
not form part of the regular wages, hence, they cannot be
included in the computation of overtime pay, night shift
differential, etc.
For the purposes of determining the overtime and premium pay,
the 13th month pay need not be credited as part of the regular
wage.
CHAPTER II
Weekly Rest Periods
ART. 91. Right to Weekly Rest Day. — (a) It shall be the
duty of any employer, whether operating for profit or not, to
provide each of his employees a rest period of not less than
twenty-four (24) consecutive hours for every six (6)
consecutive normal work days.
(b) The employer shall determine and schedule the
weekly rest day of his employees subject to collective
bargaining agreement and to such rules and regulations as
the Secretary of Labor and Employment may provide.
However, the employer shall respect the preference of
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 LABOR STANDARDS (Atty. Paulino Ungos)
employees as to their weekly rest day when such preference
is based on religious grounds.
Q: What is a rest day?
A: It is the period of inactivity of not less than 24 consecutive
hours given to an employee after rendering service for a week.
Q: What is a week of labor?
A: It is to be understood to embrace the ordinary number of six
labor days, in the absence of an express agreement to the
contrary.
Q: Does the rest day need to fall on a Sunday?
A: No, it need not be on a Sunday especially if the establishment
is open during Sundays and Holidays.
Q: Who has the right to choose which day of the week the
rest day will fall? The employer is given the option to assign
the rest day, but, if due to religious grounds, the worker may be
respected of his choice. However if the employee’s absence on
that day would result in serious prejudice to the operations of the
business, the employer may schedule the preferred rest day for
at least 2 days in a month.
Q: What is the rest day of health personnel?
A: According to Article 83 of this Code, health personnel are
given twenty four consecutive hours of rest after every six (6)
consecutive normal work days. However if there are exigencies,
such that, the city or municipality where he work in has a
population more than one million or in a hospital where he is
employed has more than 100 beds, then the health personnel is
given a rest day of 48 consecutive hours after 5 consecutive days
of work.
ART. 92. 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 accident, fire, flood, typhoon, earthquake,
epidemic or other disaster or calamity to prevent loss of life
and property, or imminent danger to public safety;
(b) In case or 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 or wok due to
special circumstances, where the employer cannot ordinarily
be expected to resort to other measures;
(d) Where the nature of work requires continuous
operations and the stoppage of work may result in
irreparable injury or loss to the employer; and
(e) Under other circumstances analogous or similar to
the foregoing as determined by the Secretary of Labor and
Employment.
Compulsory Rest Day Work, When Allowed:
(1) Disaster or Calamity
(2) Urgent Repairs
(3) Abnormal Pressures of Work
(4) Preservation of Perishable Goods
(5) Nature of Work
(6) Favorable Weather Conditions
(7) Exigencies of Service
ART. 93. 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
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additional compensation of at least thirty percent (30%) of
his regular wage. An employee shall be entitled to such
additional compensation for work performed on Sunday
only when it is his established rest day.
(b) When the nature of the work of the employee is
such that he has no regular workdays and no regular rest
days can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular
wage for work performed on Sundays and holidays.
(c) Work performed on any legal holiday shall be paid
with an additional compensation of at least thirty percent
(30%) of the regular wage of the employee. Where such
holiday work falls on the employee's scheduled rest day, he
shall be entitled to an additional compensation of at least
fifty percent (50%) 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.
Q: What is a Premium Pay?
A: It is an additional compensation given to a covered employee
for working on a holiday or rest day.
Rates of Premium Pay.
30% on a rest day or special day
50% on a rest day falling on a special holiday
200% on a regular holiday
30% in addition to his regular holiday rate, on a regular day
falling on a rest day.
Tip: When asked, what is the premium pay of the employee, the
proper answer is “the regular wage plus an additional percent of
his regular wage.”
Q: Does an employee who work on a Sunday entitled to
premium pay?
A: No, because Sunday is considered a regular day, unless it is
the employee’s established rest day.
Employees Not Entitled to Premium Pay.
- All employees mentioned in Article 82.
(1) Government employees and those employed in
Government-Owned and Controlled Corporations having a
special charter;
(2) Managerial employees;
(3) Officers and members of the managerial staff;
(4) Non-Agricultural field personnel;
(5) Members of the family of the employer who are dependent
upon him for support;
(6) Domestic helpers insofar as rest day and service incentive
leave is concerned;
(7) Persons in the personal service of another; and
(8) Workers paid by results.
Important: Premium pay is an additional compensation other
than and added to the regular wage or basic salary. It should not
be considered in the computation of 13th month pay.
Important: For special holidays, “No work, no pay” policy
applies.
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CHAPTER III (6) Domestic helpers insofar as rest day and service incentive
leave is concerned;
Holidays, Service Incentive Leaves and Service Charges (7) Persons in the personal service of another; and
ART. 94. Right to Holiday Pay. – (a) Every worker shall (8) Workers paid by results.
be paid his regular daily wage during regular holidays, Piece Rate Persons – No
except in retail and service establishments regularly
employing less than ten (10) workers; Sale s Personnel – No
(b) The employer may require an employee to work on
any holiday but such employee shall be paid a compensation Seasonal Workers – No
equivalent to twice his regular rate; and Teachers and Faculty Members – During Christmas vacation,
(c) As used in this Article, “holiday” includes: New Yes. During semestral breaks, No. Those paid per lecture hour,
Year’s Day, Maundy Thursday, Good Friday, the ninth of No. Panu pag regular holiday? Nada. Alam naman kasi nila na
April, the first of May, the twelfth of June, the fourth of during those days, hindi sila magtatarabaho eh.
July, the thirtieth of November, the twenty-fifth and
thirtieth of December and the day designated by law for Monthly-Paid Employees – Yes!
holding a general election.
How to determine if the holiday pay is included in the wages:
Q: What are the regular Holidays? When the total earned wages for the year divided by 251 days
A: According to the Administrative Code of 1997, as amended would result to his regular monthly wage, then holiday pay is
by R.A. No. 9492, the regular holidays are: not included. When the total earned wages for the year divided
a) Regular Holidays by 261 days would amount to his regular monthly wage, then,
- New Year’s Day January 1 the holiday pay is deemed included.
- Maundy Thursday Movable Date
- Good Friday Movable Date Effect of Absences, how to know if you are entitled to
- Eidul Fitr Movable Date holiday pay:
- Araw ng Kagitingan Monday nearest April 9
RULES:
- Labor Day Monday nearest May 1
 Entitled to holiday pay when they are on leave of absence
- Independence Day Monday nearest June 12
with pay.
- National Heroes Day Last Monday of August
- Bonifacio Day Monday nearest November 30  Not entitled when they are on leave o absence without pay
- Christmas Day December 25 on the day immediately preceding the regular holiday.
- Rizal Day Monday nearest December 30  Entitled, if the days immediately preceding the regular
holiday is a non-working day or rest day, he is deemed to
b) Nationwide Special Holidays be on leave of absence on that day, provided, he worked on
- Ninoy Aquino Day Monday nearest August 21 the day immediately preceding the non-working day or rest
- All Saints Day November 1 day.
- Last day of the Year December 31  For two successive regular Holidays, not entitled if the
employee is absent the day preceding the first regular
c) In the event the holiday falls on a Wednesday, the holiday Holiday. But, if he works on the first holiday, he is entitled
will be observed on the Monday of that week. If the holiday falls to holiday pay on the second holiday.
on a Sunday, the holiday will be observed on the Monday that
follows. Q: How much compensation is the employee entitled when
d) Eidul Adha shall be celebrated as a regional holiday in the two regular holidays fall on the same day?
Autonomous Region in Muslim Mindanao. A: The employee should be paid for both the regular holidays.
So, he will be earning 100% of his regular wage, plus an
Pursuant to Proclamation No. 1198 (1973), For corporations additional 100% for the first holiday and another additional
whose business is situated in muslim provinces, as enumerated, 100% for the second holiday for an aggregate premium pay of
shall observe the Holidays under the Code of Muslim Personal 300%.
Laws, their employees are excused from reporting for work
without reduction in their usual compensation. Muslim Q: Is an employee entitled to Holiday Pay if the business is
employees working outside Muslim provinces shall be excused closed?
from work in observance of the enumerated holidays. A: Yes if the closure is temporary. Obviously no, if the closure
is permanent.
Employees not Entitled to Holiday Pay.
- All employees mentioned in Article 82 except members of the ART. 95. Right to Service Incentive Leave. – (a) Every
family of the employer and including employees of retail and employee who has rendered at least one year of service shall
service establishments. be entitled to a yearly service incentive leave of five days
(1) Government employees and those employed in with pay.
Government-Owned and Controlled Corporations having a
special charter; (b) This provision shall not apply to those who are
(2) Managerial employees; already enjoying the benefit herein provided, those enjoying
(3) Officers and members of the managerial staff; vacation leave with pay of at least five days and those
(4) Non-Agricultural field personnel; employed in establishments regularly employing less than
(5) Employees of the retail and service establishments ten employees or in establishment exempted from granting
regularly employing less than 10 workers; this benefit by the Secretary of Labor and Employment after

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 LABOR STANDARDS (Atty. Paulino Ungos)
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.
Note: 5 days of service incentive leave is granted to an
employee who rendered at least one year of service. If it is not
exhausted by the end of the year, it may be converted to cash.
Employees not Entitled to Service Incentive Leave.
- All employees mentioned in Article 82 except those
employees paid by results and including employees of
establishments with less than 10 employees and those already
enjoying vacation leave.
(1) Government employees and those employed in
Government-Owned and Controlled Corporations having a
special charter;
(2) Managerial employees;
(3) Officers and members of the managerial staff;
(4) Non-Agricultural field personnel;
(5) Employees of the retail and service establishments
regularly employing less than 10 workers;
(6) Domestic helpers insofar as rest day and service incentive
leave is concerned;
(7) Persons in the personal service of another; and
(8) Those who are already enjoying vacation leave with pay of
at least 5 days; and
(9) Those employed in establishments regularly employing less
than ten employees.
ART. 96. Service Charges. – All service charges collected
by hotels, restaurants and similar establishments shall be
distributed at the rate of eighty-five percent (85%) for all
covered employees and fifteen percent (15%) for
management. The share of the employees shall be equally
distributed among them. In case the service charge is
abolished, the shore of the covered employees shall be
considered integrated in their wages.
Employees not Entitled to Service Charges
- All employees except managerial employees.
Distribution of Charges
- 85% for the employees divided equally among them and 15%
for the management for its disposition to answer for losses
and breakages and for distribution to managerial employees.
Q: Can employees be required to post a bond before
employment?
A: No, if service charge is being collected by the establishment.
Q: What if the service charge was abolished?
A: The share of the covered employees shall be consi-dered
integrated in their wages. The basis of the amount is the average
monthly share for the past 12 months immediately preceding the
abolishment.
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TITLE II
Wages
CHAPTER I
Preliminary Matters
ART. 97. Definitions. — As used in this Title:
(a) "Person" means an individual, partnership,
association, corporation, business trust, legal representative,
or any organized group or person.
 (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.
(c) "Employee" includes any individual employed by an
employer.
(d) "Agriculture" includes farming in all its branches
and among other things includes the cultivation and tillage
of soil, dairying the production, cultivation, growing and
harvesting of any agricultural and horticultural
commodities, the raising of livestock or poultry, and any
practices 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 or processing of sugar,
coconuts, abaca, tobacco, pineapples or other farm products.
(e) "Employ" includes to suffer or permit to work.
(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.
Q: What are wages?
A: Wages are remunerations or earnings payable by an
employer to an employee for work done or to be done or for
services rendered or to be rendered. It should arise from an
employer-employee relationship.
Q: What is the distinction between salaries and wages?
A: The Labor Code does not distinguish one from the other.
Wages is too broad a term that salaries are considered included
in it. The fine line would be, wages refers to compensation to
manual labor, skilled or unskilled, while salaries denote a higher
grade of employment, or a superior grade of service and implies
a position of office. Wages indicate pay for a low character
employment, whereas salaries are of higher and more important
service.
Important: If it is not wages, it will not fall under the Labor
Code, instead the Civil Code.
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 LABOR STANDARDS (Atty. Paulino Ungos)
If there is no employer-employee relationship, it not considered
as wages.
Article 1708 of the Civil Code exempt’s a laborer’s wage from
execution or attachment except for debts incurred for food,
shelter, clothing, and medical attendance.
Q: What are facilities?
A: Facilities are expenses necessary for the laborer’s and his
family’s existence and subsistence. It includes rice ration,
housing, medical treatments, school facilities, cost of water,
electricity, fuel, etc.
Q: Are facilities included in the wages?
A: Yes because it includes the fair and reasonable value of
board, lodging, and other facilities customarily furnished by the
employer to the employee.
Q: What do you mean by customarily?
A: It means that the furnishing of facilities is founded on long
established and constant practice connoting regularity.
Q: May the employer deduct these facilities from his wages?
A: Yes, provided, that:
1) The facilities are customarily furnished;
2) The provision of deductible facilities must be voluntarily
accepted;
3) The facilities must be fair and reasonable; and
4) There must be a written authorization from the employee
to deduct.
Q: What are supplements?
A: They are extra remuneration or special privileges or benefits
given to or received by the labourers over and above their
ordinary earnings or wages. They are not part of wages. They
are given merely to augment the earnings of the employee.
Q: Give examples of supplements?
A: Vacation leave pay, overtime pay, sick, pension, retirement
and death benefits, profit sharing, allowances, Christmas bonus,
etc.
Q: How will you determine if the benefit is a facility or
supplement?
A: If it inures primarily to the benefit of the employer, then it is
a facility.
Q: Can the employer deduct the benefits?
A: According to Article 100, No.
BONUS – is an amount granter and paid to an employee for his
industry and loyalty which contributed to the success of the
employer’s business and made possible the realization of profits.
It is an act of generosity.
GEN. RULE: Bonus is not demandable nor an enforceable
obligation.
EXCEPTION: When the bonus has become a matter of right.
Q: When does it become a matter of right?
A: If the grant is the result of an agreement or if it is made part
of the wages.
Q: How can a bonus become part of wages?
A: If it is given in a fixed amount without and condition,
whether the employer realized profits or not; or if the granting of
bonus has ripened into a practice.
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Thirteenth Month Pay
It is an extra remuneration given to employees in an amount
equivalent to 1/12 of the basic salary earned by an employee
within a calendar year, provided, such employee has rendered
service for at least one year.
Computation:
Basic salary divided by 12. Basic salary ha? Hindi premium
salary.
Who are Entitled to 13th month pay:
(1) All rank-and-file employees;
(2) Employees paid on piece-work basis;
(3) Employees who are paid a fixed or guaranteed wage plus
commission;
(4) Private school teachers who have rendered at least one year
of service;
(5) Employees working for two or more firms (they are entitled
to collect from all employers);
(6) Employees who resigned or whose services were
terminated before the payment of the 13th month pay;
(7) Household helpers.
- All employees mentioned in Article 82 except those
employees paid by results and including employees of
establishments with less than 10 employees and those already
enjoying vacation leave.
Employees not Entitled to 13th Month Pay:
(1) Government employees and those employed in
Government-Owned and Controlled Corporations having a
special charter;
(2) Employers already paring their employees a 13th month pay
or more in a calendar year or its equivalent;
(3) Those who have rendered less than one year of service; and
(4) Employees paid purely on commission.
Q: What if equivalent pay is less than the 1/12 of the
employee’s basic salary?
A: The employer is bound to pay only the difference.
Time of payment of 13th month pay.
Either not later than December 24 in full or one before the
opening of the regular school year and the other half on or
before December 24.
14th month pay
Not mandated by law; Gratuitous in nature; and a managerial
prerogative. Hence, it is not demandable.
Q: When is the 14th month pay demandable?
A: When the requisites are met:
(1) If it is a company practice;
(2) If it arises from a contract;
(3) If it was made part of wages;
(4) It is given regardless whether the employer realized profits
or not.
 ART. 98. Application of Title. — This Title shall not
apply to farm tenancy or leasehold, domestic service and
persons working in their respective homes in needlework or
in any cottage industry duly registered in accordance with
law.
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 LABOR STANDARDS (Atty. Paulino Ungos)
Coverage of the Law on Wages
The provisions of the Labor Code on wages apply to all
employees except:
(1) Household helpers;
(2) Persons in the personal service of another;
(3) Homeworkers engaged in needlework;
(4) Workers employed in the cottage industry;
(5) Workers of a registered cooperative; and
(6) Farm tenancy and leasehold.
CHAPTER II
Minimum Wage Rates
 ART. 99. Statutory 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.
REMEDY: The aggrieved party can appeal to the National
Wages Commission within ten (10) days.
METHODS IN FIXING THE MINIMUM WAGE:
(a) The Floor-Wage method; and
(b) The Salary-Ceiling method.
FLOOR-WAGE METHOD prescribes a determinate amount
that would be added to the prevailing statutory minimum wage.
SALARY-CEILING METHOD prescribes a wage adjustment
that would apply only employees receiving a certain
denominated salary ceiling.
Q: Can you waive the minimum wage?
A: The minimum wage fixed by law is mandatory. It cannot be
waived.
The term “wage” includes the fair and reasonable value, as
determined by the Secretary of Labor and Employment, of
board, lodging or other facilities furnished by the employer to
the employee.
Q: Can you bargain the minimum wage?
A: It is an area beyond the sphere of collective bargaining
between the parties. It is fixed by law. Not even the consent of
the employees themselves suffices to defeat its operations.
Q: If the minimum wage is not followed, what is the
sanction?
A: Failure to pay the prescribed wage increase or cost of living
allowances will subject the employer to CRIMINAL LIABILITY
and DOUBLE INDEMNITY.
Note: This is the relief mentioned earlier in Article 17.
AGRICULTURE means farming in all its branches and any
practice performed by a farmer on a farm as an incident to or in
conjunction with farming operations. It includes:
(a) The cultivation and tillage of soil;
(b) Dairying;
(c) The production, cultivation, growing and harvesting of
agricultural and horticultural commodities; and
(d) The raising of livestocl or poultry.
 ART. 100. Prohibition Against Elimination or Diminution of
Benefits. — Nothing in this Title shall be construed to
eliminate, or in any way diminish supplements, or other
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employee benefits being enjoyed at the time of promulgation
of this Code.
Principle of Non-Diminution of Benefits:
A benefit regularly and voluntarily granted without conditions
becomes part of the terms and conditions of employment, and
therefore, it cannot be unilaterally withdrawn or reduced.
Q: Name cases where the principle do not apply to?
A: The principle is not violated if the action
(a) does not result in reduction or elimination of benefits;
(b) if what is deducted is the fair and reasonable value of
facilities;
(c) if an employer reduces the bonuses it used to grant its
employees; and
(d) if it discontinues a benefit that has been granted by
mistake.
Q: When does the grant of benefits become a “Company
Practice?”
A: To be considered as company practice, it should have been
observed over a long period of time and must be shown to have
been consistent and deliberate.
Q: What is “Payment by Mistake?”
A: When an employer grants benefits to his employees which
had never been due. It may be a mistake of fact or mistake of
law.
ART. 101. Payments by results. — The Secretary of
Labor and Employment shall regulate the payment of wages
by results, including pakyao, piecework 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.
CHAPTER III
Payment of Wages
ART. 102. 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.
Q: In what form should wages be paid?
A: Generally, in legal tender. However, the employer and his
employees may agree that it be made by check or money order.
LEGAL TENDER – is that currency which had been made
suitable by law for the purpose of tender of payment of debts.
All notes and coins issued by the Bangko Central are legal
tender. A check is not a legal tender.
Principle of “No Work, No Pay”
If there is no work performed by the employee there can be no
wage or pay, unless the employee was illegally locked out,
dismissed, or suspended. It is based on an age-old rule “fair
day’s wage for a fair labor.”
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 LABOR STANDARDS (Atty. Paulino Ungos)
Remedy: If payment of wages made not in legal tender – file a
complaint for unpaid wages even if he accepted tokens, etc.
Note: The law is clear that wages should be made in legal
tender. Even if the method of payment was agreed upon by the
parties or the employee himself made the request.
Q: Can payment be made using checks or money order?
A: Yes. It is allowable only in the following cases:
(a) It is customary on the date of the effectivity of the Labor
Code;
(b) So stipulated in a collective bargaining agreement
(agreement with the union); or
(c) When there is a bank or other facilities for encashment:
a. Within a radius of 1km from the workplace;
b. The employer or his agents do not receive eny
pecuniary benefit from the arrangement;
c. The employees are given reasonable time during
banking hours to withdraw their wages on company
time; and
d. The employee consents to such an arrangement.
ART. 103. Time of Payment. — Wages shall be paid at
least once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) 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. No employer shall make payment with less frequency
than once a month.
The payment of wages of employees engaged to perform
a task which cannot be completed in two (2) weeks shall be
subject to the following conditions in the absence of a
collective bargaining agreement or arbitration award:
(1) That payments are made at intervals not exceeding
sixteen (16) days, in proportion to the amount of work
completed; and
(2) That final settlement is made upon completion of the
work.
Circumstances that may justify delayed payment:
(a) Force Majeure; or
(b) Circumstances beyond employer’s control.
Force Majeure – refers to events which arise from legitimate or
illegitimate acts of persons other than the employer, such as war,
robbery, arson, etc.
Circumstances bend control – refers to fortuitous events
independent of human intervention, such as flood, typhoons,
earthquakes, and other natural calamities.
ART. 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 and Employment may prescribe under conditions to
ensure greater protection of wages.
GENERAL RULE: The payment of wages should be made at
the place of business.
EXCEPTIONS:
1) Deterioration of peace and order or actual or impending
emergencies;
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2) Employer provides for transportation to and from the place
where the salary is to be distributed;
3) Analogous circumstance, provided the time spent by the
employees collecting their wages shall be considered as
compensable hours worked.
PAYMENT IN RECREATIONAL PLACES, PROHIBITED,
except for employees working in such places.
PAYMENT THROUGH ATM’s REQUISITES:
1) Written consent of the employee;
2) Reasonable time to withdraw their wages from the bank, if
done during working hours, considered hours worked;
3) Without prejudice to Art. 103 with regard to frequency of
payment;
4) Within 1km to the place of work;
5) Upon request of the employee;
6) No additional expenses and no diminution of benefits and
privileges; and
7) Employer shall be responsible when the law are not
complied with.
 ART. 105. Direct Payment of Wages. - Wages shall be
paid directly to the workers to whom they are due, except:
(a) In cases of force majeure rendering such payment
impossible or under other special circumstances to be
determined by the Secretary of Labor and Employment in
appropriate regulations, in which case, the worker may be
paid through another person under written authority given
by the worker for the purpose; or
 (b) Where the worker 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 and Employment or his representative.
The representative of the Secretary of Labor and
Employment 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.
GENERAL RULE: Wages shall be paid directly to the workers
to whom they are due.
EXCEPTION: Can be paid to another person when:
1) Employer is authorized in writing that it shall be paid to a
member of the family;
2) Payment is authorized by existing law;
3) Death of an employee; and
4) Force Majeure and employee executes a written authority for
the delivery of his wages to another person.
PAYMENT OF WAGES OF AN EMPLOYEE WHO HAS
DIED: Intestate proceedings are not necessary. The heirs should
simply submit to the employer an affidavit attesting to their
relationship with 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 natural guardian or next of kin shall execute the
affidavit in his behalf. Upon presentation of the affidavit, the
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 LABOR STANDARDS (Atty. Paulino Ungos)
employer shall make payment to the heirs as representative of
the Secretary. Payment in accordance with the foregoing
procedure will relieve the employer from further liability with
respect to the amount paid.
ART. 106. Contractor or Subcontractor. - Whenever an
employer enters into a contract with another person for the
performance of the former’s work, the employees of the
contractor and of the latter’s subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
 In the event that the contractor or subcontractor fails to
pay the wages of his employees in accordance with this Code,
the employer shall be jointly and severally liable with his
contractor or subcontractor to such employees to the extent
of the work performed under the contract, in the same
manner and extent that he is liable to employees directly
employed by him.
The Secretary of Labor and Employment may, by
appropriate regulations, restrict or prohibit the contracting-
out of labor to protect the rights of workers established
under this Code. In so prohibiting or restricting, he may
make appropriate distinctions between labor-only
contracting and job contracting as well as differentiations
within these types of contracting and determine who among
the parties involved shall be considered the employer for
purposes of this Code, to prevent any violation or
circumvention of any provision of this Code.
 There is "labor-only" contracting where the person
supplying workers to an employer does not have substantial
capital or investment in the form of tools, equipment,
machineries, work premises, among others, and the workers
recruited and placed by such person are performing
activities which are directly related to the principal business
of such employer. In such cases, the person or intermediary
shall be considered merely as an agent 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.
TRILATERAL RELATIONSHIP: (Art. 107)
PRINCIPAL Decides
Power to
With E.E.
Control
CONTRACTOR Undertakes Relation-
Means
ship
and ends
No E.E.
Only
WORKER Finishes Relation-
Ends
ship
There is contracting or subcontracting when an employer
engages the services of a contractor to perform a certain work,
task or job on his own account under his own responsibility free
from the control and direction of his employer in all matters
except as to the result of the work.
Contracting or subcontracting is no illegal per se. It is perfectly
legal for an employer to engage a contractor to perform
janitorial, security, collection, maintenance, merchandising,
messengerial, and technical services or specialized works.
REQUISITES OF VALID (SUB)CONTRACTING:
1) The SubCon/Con must have a distinct and independent
business and must undertake
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a. to perform the work on his own account;
b. under his own responsibility;
c. according to his own manner and method;
d. free from control and direction of the principal
in all matters connected with the performance of work
EXCEPT as to the results thereof.
2) The SubCon/Con must have substantial capital or
investment in the form of tools, equipment, machineries
and other materials which are necessary in the conduct of
his business.
Q: What does substantial capital or investment mean?
A: That the contractor or subcontractor has fully subscribed and
paid for its capital stock.
Q: What if the (sub)contractor is not registered?
A: There is a presumption of “labor-only” contracting?
Q: What if the presumption is not overcome?
A: The employees of the (sub)contractor will become employees
of the principal.
Legal Effect of Legitimate Contracting or Subcontracting
An employer who enters into a contract with a legitimate
contractor does not thereby create an employer-employee
relationship between himself and the employees of the
contractor. The employees of the contractor remain the
contractor’s employees and his alone
When the contractor fails to pay the wages of his employees in
accordance with the Labor Code, the employer becomes jointly
and severally liable with his contractor for wages “to the extent
of the work performed under the contract.”
The principal may seek reimbursement from contractors for
wages he paid. He should file his claim in the regular courts and
not with the NLRC.
Q: When is Contracting or Subcontracting Illegal?
A: Being contrary to law or public policy, contracting or
subcontracting is illegal in the following cases:
(C dean Ulan Galit, at Illegal daw Rectruitment ng Lex
Talionis)
1) Labor-Only Contracting;
2) Contracting out work with a “Cabo;”
3) Contracting out work through an In-house agency;
4) Contracting out work that is directly Related to the
business of the principal by reason of strike or lock-out,
whether actual or imminent;
5) Contracting out work when not done in Good faith and not
justified by the exigencies of the same resulting in:
a. The termination of regular employees;
b. Reduction of work hours; or
c. Reduction or splitting of the bargaining unit.
6) Contracting out work being performed by Union members
when such will interfere with the exercise of their right to
self organization. (Unfair Labor Practice)
Q: What is Labor-Only Contracting?
A: an arrangement whereby the contractor:
1) does not have substantial capital or investment in the form
of tools, equipment, and work premises: and
2) merely recruits, supplies or places workers only;
to the principal employer to perform a job, work or activity that
is directly related to the main business of the principal employer.
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 LABOR STANDARDS (Atty. Paulino Ungos)
Elements or Labor-Only Contracting (D Wade Scores)
(a) Contractor supplies Workers only;
(b) The undertaking is Directly related to the main business of
the principal; and
(c) The contractor does not have Substantial capital in the form
of tools, equipment and work premises.
Legal Effect of Labor-Only Contracting
When there is “Labor-Only” contracting, the law establishes an
employer-employee relationship between the principal employer
and the employees of the contractor. The contractor is
considered as a mere agent of the principal employer and,
therefore, both the principal and the contractor are solidarily
liable for all the rightful claims of the employees. (Art. 109)
Contracting Out Work with a “Cabo” – refers to a person or
group of persons or to a labor group which, in the guise of a
labor organization, supplies workers to an employer, whether as
an agent of the principal or as an independent contractor.
Contracting Out Work Through an In-House Agency –
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.
Contracting Out Work During a Strike or Lockout –
becomes illegal only if the job, work, or service contracted is
directly related to the business of the principal.
Contracting Out Work Being Performed by Union Members
– becomes illegal only when such, will interfere with, restrain or
coerce employees in the exercise of their right to self-
organization.
Contracting Out Work Resulting in the Termination of
Regular Employees. Reduction of work hours, reduction or
splitting of the bargaining unit becomes illegal only when not
done in good faith AND not justified by the exigencies of the
business.
ART. 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.
Contractors and Sub-Contractors are required to register with the
DOLE. Failure to register shall give rise to the presumption that
the contractor is engaged in labor-only contracting.
Q: What is the Trilateral Relationship in contracting
arrangements?
A: Under the trilateral relationship, the principal decides the job
or service to be contracted out, while the contractor undertakes
to perform a job or service, and the workers accomplish the job
or service.
Q: How will you determine if the relationship between the
principal and the contractor is for contracting or sub-
contracting purposes?
A: When the contractor undertakes the job or service and the
principal has control only as to the results of the job or service
and not to how it will be performed or the means employed by
the contractor.
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ART. 108. Posting of Bond. - An employer or indirect
employer may require the contractor or subcontractor 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.
ART. 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 subcontractor 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.
As mentioned earlier, if the principal was to be held solidarily
liable with the contractor, the former shall be liable to any
claims by the employees. What are these claims?
A: The principal employer shall be liable jointly and severally
with the contractor for the employees back wages, separation
pay and damages.
Q: Can the employee sue the government?
A: Yes. As defined in Article 97(b) of the Labor Code, the term
“employer” shall include the Government and all its branches,
subdivision and instrumentalities, all government-owned or
controlled corporations and institutions.
Q: Where may an employee file his claims?
A: File it with the NLRC since the word “employer” includes
the Government, the NLRC may exercise jurisdiction over cases
involving claims of employees.
ART. 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 wages and other monetary claims, any provisions of
law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the
government and other creditors may be paid.
Note: For Article 110 to become effective, there must be
bankruptcy or insolvency proceedings, or judicial liquidation of
the business of the employer, otherwise, this Article will hold no
ground.
Q: What if the business, say a bank, is put into a
receivership, and is undergoing rehabilitation proceedings,
is Article 110 in force?
A: Duh, no.. the law is clear that it must be bankruptcy or
liquidation proceedings. Kumbaga, ayaw nang i-tuloy ni
principal negosyo niya. Mag file ka na lang nang claim tapos
maghanap ka na ng bagong trabaho. Kung naka-receivership
siya, eh di suspended lang yung operation kasi medyo nalulugi
na, pero employed ka pa rin.
Q: What if the employer announces, that he will stop
operating the business without entering into any judicial
proceedings and, the employees found out that the employer
entered into an agreement with his creditors for the payment
of debts, how will the employees assert their claim?
A: Opinio Non Juris. Normally, the employees may demand
from the stockholders or employer to execute and affidavit of
personal liability, since there is no judicial proceedings, the
employees have no right to initiate the same. However, they may
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 LABOR STANDARDS (Atty. Paulino Ungos)
claim for damages based on Article 28 of the Civil Code which
states:
Art. 28. Unfair competition in agricultural,
commercial or industrial enterprises or in labor
through the use of force, intimidation, deceit,
machination or any other unjust, oppressice or
highhanded method shall give rise to a right of action
by the person who thereby suffers damage.
A: According to Master “Boy Tinder,” the relationship between
the employer and employee becomes a credit-debtor
relationship. The employees may file a case for the collection of
sum of money based on contract under the Civil Code.
Q: What are the monetary claims available to the
employees? (BDSM)
A: Backwages, Damages, if any and Separation Pay monetary
claims.
Q: Who are the claimants of the employer or business
owner?
A: The Government; the employees regarding their monetary
claims; and the business owner’s creditors.
Q: What are the kinds of credits under the Civil Code?
A: Special preferred credits, Ordinary preferred credits and
Common credits.
Monetary Claims of Workers
Not all monetary claims of workers fall under the category of
special preferred credits. Only those specified in Article 2241(6)
and Article 2242(3) of the Civil Code are considered as special
preferred credits, namely:
(a) Claims for laborer’s wages, on the goods manufactured
or the work done; and
(b) Claims of labourers, masons, mechanics and other
workmen, as well as architects, engineers and contractors,
engaged in the construction, reconstruction or repair of
buildings, canals or other works, upon the same buildings,
canals or other works.
Q: What is the legal effect in the order of preference of
credits under the Civil Code when the Labor Code, in
relation to Article 110, was promulgated?
A: The use of the phrase “first preference” in Article 110 of the
Labor Code merely modifies the order of preference found in
Article 2244 of the Civil Code. The modification consists in:
(a) Removing the one year limitation found in Article 2244(2)
of the Civil Code; and
(b) Moving up claims for unpaid wages and other monetary
claims of labourers or workers.
The taxes listed in Articles 2241 and 2242 of the Civil Code,
stand first in preference with respect to the particular property to
which the tax liens have attached, as provided by Article 2243 of
the Civil Code which states: “taxes mentioned in No.1, Article
2241, and No.1, Article 2242, shall first be satisfied.”
Special preferred credits are to be paid only after the taxes on
the specific property involved have been paid.
Article 110 of the Labor Code does not constitute a lien on the
property of the insolvent debtor in favour of workers. It is just a
preference of credit in their favor. Preference of credits applies
only to claims which do not attach to specific properties, while a
lien attaches to a particular property.
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ART. 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 (10%) 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 wages, attorney’s fees which exceed ten percent
(10%) of the amount of wages recovered.
CHAPTER IV
Prohibitions Regarding Wages
 ART. 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 any other
person, or otherwise make use of any store or services of
such employer or any other person.
PROHIBITIONS:
- Disposal
- Deduction
- Deposit
- Limitations
- Withholding / Kickbacks
- Promise Employment / Retention
- Retaliatory
- False Reporting
 ART. 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 cases where the worker 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 or 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 and
Employment.
What are the lawful deductions?
(I IWAS, FOULE3D pa rin?)
1) Insurance premiums advanced by the employer;
2) Union dues, where the right to check-off has been
recognized by the employer;
3) Agency fees assessed by the collective bargaining agent
against non-union members;
4) Special assessments or extraordinary fees levied by a
collective bargaining agents against its members.
5) Fair and reasonable value of Facilities;
6) Obligations of an employee to third persons;
7) Cost of Lost or damaged tools, materials or equipment;
8) Due and demandable Debt of an employee to his employer;
9) Deductions made in compliance with Writs of execution or
attachment against the employee for debts incurred for
food, shelter, clothing and medical attendance;
10) Income Tax;
11) Employee’s shares in the premium contributions to the
SSS;
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 LABOR STANDARDS (Atty. Paulino Ungos)
12) Empoyee’s share in the premium contributions to the
Philhealth; and
13) Employee’s contribution to the Pag-Ibig Fund.
Q: Can an employer deduct the cost of uniforms?
A: No, even if the employee executes a written authorization.
Pinagpilitan ka nang mag-uniform, pagbabayarin ka pa?
Q: If an employer reduces the number of workdays due to
economic reasons, can it also make the corresponding
reduction in the salaries or wages?
A: Yes. In situations where the reduction in the number of
regular working days is resorted to by the employer to prevent
serious losses due to cause beyond his control, such reduction is
valid.
Q: What is a “Check-off” Fee?
A: 
Q: Can an employer be compelled to check-off union dues?
A: No.
Q: What if the employer rejects deducting the check-off
dues?
A: The employer’s failure to make the requisite reduction may
constitute a violation of a contractual commitment for which he
may incur liability for unfair labor practice.
Q: May non-union members avail of the right to check-off?
A: Yes, non-union members belonging to the appropriate
bargaining unit who accepts the benefits of the CBA may avail
of this right.
Q: Are they required to make a written check-off
authorization?
A: No, they don’t. The employee’s acceptance of the benefits
resulting from the CBA justifies the deduction of agency fees
from his salary.
Q: What are the requisites of a valid check-off or special
assessment or other extraordinary expenses?
A: The requisites are:
1) There must be a written resolution by a majority of all the
members at a general membership meeting duly called for
the purpose;
2) The minutes of the meeting duly recorded by the secretary
of the union and attested by the union president; and
3) Individual written check-off authorization by the
employees concerned.
Q: What is the most important requisite?
A: No. 3. That there must be a written check-off authorization
by the employees concerned.
 ART. 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 business 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 and Employment in appropriate rules and
regulations.
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GEN RULE: The employer may not require his employees to
make a deposit for any future loss or breakage of any tools,
materials or equipment.
EXCEPTIONS: If the employer is engaged in such trade; or
requiring deposits is a recognized practice; or necessary or
desirable as determined by the Secretary.
In establishments where service charge is collected, the
employees are not required to make any deposits because 15%
of the service charge belongs to the management, under his
prerogative, give to his other employees or answer for the loss or
damage to his tools or equipment.
Q: Can a taxi driver be required to make a deposit?
A: if the deposit or deduction is to wash the unit after the tour of
duty, yes. But if the deposit or deduction is to answer for the
deficient “boundary” payment, then there is a violation of
Article 114 of the Labor Code.
 ART. 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.
Q: May when an employee be required to pay for any loss or
damage?
A: (a) When the employee is given the opportunity to be heard;
(b) He was found responsible for the loss or breakage; and
(c) The amount required of him does not exceed the actual
damage.
(d) The deduction does not exceed 20% of the employee’s
wages in a week.
 ART. 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 by any other means
whatsoever without the worker’s consent.
Q: What are the prohibited acts under Article 116?
A: These are the withholding of any amount from the wages of
the worker; and inducing an employee to give up any part of his
wages by force, stealth, intimidation, threat or any other means
without the employee’s consent.
Q: What will be the liability of the employer for such
violation?
A: The employer may incur criminal liability, pay double the
claim of the employee, and in proper cases payment of at least
10% of the Attorney’s fee..
 ART. 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.
Q: What is the scope of Article 117?
A: Article 117 prohibits the deduction from the wages of an
employee as consideration for: (a) promise of employment; or
(b) retention of employment.
 ART. 118. Retaliatory Measures. - It shall be unlawful for
an employer to refuse to pay or reduce the wages and
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 LABOR STANDARDS (Atty. Paulino Ungos)
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.
ART. 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.
CHAPTER V
Wage Studies, Wages Agreements and Wage Determination
ART. 120. Creation of 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
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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
and functions in their respective territorial jurisdictions:
(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 regions, 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
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 LABOR STANDARDS (Atty. Paulino Ungos)
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. (As amended by Republic Act
No. 6727, June 9, 1989).
ART. 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. (As amended
by Republic Act No. 6727, June 9, 1989).
ART. 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-à-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
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minimum wages in every region. These wages shall include
wages varying with 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 a 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 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 of
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. (As amended by Republic Act No.
6727, June 9, 1989).
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 LABOR STANDARDS (Atty. Paulino Ungos)
Q: What is wage distortion?
A: Wage distortion is a situation where an increase in the
prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wages or
salary rates between and among employee groups in an
establishment as to effectively onliterate the distinctions
embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation.
Elements of Wage Distortion:
(a) An existing hierarchy of positions with corresponding
salary rates;
(b) A significant change in the salary rate of a lower pay class
without concomitant increase in the salary rate of a higher
one;
(c) Elimination or severe contraction of the distinction
between two levels; and
(d) The existence of the distortion in the same region of the
county.
Note: If there’s a CBA, wage distortion may be valid.
Procedure for Correction of Wages Distortion
A. Unionized Establishment
(a) The employer and the union shall negotiate to create the
distortions.
(b) If the negotiations fail, the matter shall be brought to the
grievance machinery under their collective bargaining
agreement.
(c) If the grievance machinery fails to settle the dispute, the
matter shall be threshed out through voluntary
arbitration.
B. Non-Unionized Establishment
(a) The employers and workers shall negotiate to correct such
distortions.
(b) If the negotiations fail, the matter shall be brought to the
National Conciliation and Mediation Board for
conciliation.
(c) If conciliation fails, the dispute shall be referred to the
appropriate branch of the National Labor Relations for
compulsory arbitration.
Q: Does the restoration from a wage distortion require that
the historical gap be returned?
A: There is no legal requirement that the historical gap that
existing before the implementation of the wage order be resorted
to in precisely the same form or amount.
ART. 125. Freedom to bargain. - No wage order shall be
construed to prevent workers in particular firms or
enterprises or industries from bargaining for higher wages
with their respective employers. (As amended by Republic
Act No. 6727, June 9, 1989).
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. (As amended by Republic Act No.
6727, June 9, 1989).
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
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Congress. (As amended by Republic Act No. 6727, June 9,
1989).
Chapter VI
ADMINISTRATION AND ENFORCEMENT
ART. 128. Visitorial and enforcement power. - (a) The
Secretary of Labor and Employment or his duly authorized
representatives, 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 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. (As amended by Republic Act No. 7730, June
2, 1994).
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. (As amended by Republic Act No. 7730, June 2, 1994).
(c) The Secretary of Labor and Employment 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 and Employment or his
duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior court
or entity shall issue temporary or permanent injunction or
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 LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

restraining order or otherwise assume jurisdiction over any (2) Raises issues supported by documentary proofs which were
case involving the enforcement orders issued in accordance not considered during the inspection.
with this Article.
Article 128 Article 129
(e) Any government employee found guilty of violation Visitorial and Adjudicatory Powers
of, or abuse of authority, under this Article shall, after Power
Enforcement Powers
appropriate administrative investigation, be subject to Basis for the Inspection Result Complaint
summary dismissal from the service. exercise of
power
(f) The Secretary of Labor and Employment may, by
Subject Violations of labor Purely money claims
appropriate regulations, require employers to keep and
Matter / and occupational
maintain such employment records as may be necessary in
Issues health standards
aid of his visitorial and enforcement powers under this Code.
Only to employees Includes also those
Powers of the Secretary of Labor Workers still in service separated from
(a) Visitorial power; involved service and does not
(b) Enforcement power; and seek reinsatement
(c) Power to order suspension or stoppage of operations. Amount No limit to the Cannot exceed
Involved amount involved P5,000
Powers under visitorial power Appellate Secretary of DOLE NLRC
1. Inspect the records and premises of an employer; Body
2. Copy pertinent records or documents; Period to 10 calendar days 5 calendar days
3. Question any employee; and Appeal
4. Investigate any fact, condition or matter. Includes the power to
Q: When can the visitorial power be exercised? Incidental order suspension or
A: At any time of the day or night, whenever work is being Powers stoppage of
undertaken therein. operations

Q: What if during the exercise of visitorial powers, violations
of Labor Standards were found?
A: Art. 128-B becomes operational (enforcement power) and the
Secretary or his Regional Director may issue writs of execution.
Q: Where does the visitorial power and enforcement power
exercised?
A: It is exercised over the establishment and not over the
individual employees.
Q: Say, the Secretary or the Regional Director issued an
order against an establishment, to which employees does the
order apply?
A: The entire employees who are still working with said
establishment should benefit therefrom even if they did not
sign the complaint or request for inspection.
Midterm Exams: Maternity Children’s Hospital vs.
Secretary of Labor (p. 452)
Remedies: A party aggrieved by an Order issued by the
Regional Director in connection with the exercise of the
visitorial and enforcement powers under Article 128 of the
Labor Code can avail of the following remedies: (1) Motion for
Reconsideration, to be filed within seven calendar days from
receipt of the Order; and (2) Appeal to the Secretary of Labor
and Employment, to be filed within ten days from receipt of the
Order. A motion for reconsideration filed beyond the seven-day
reglementary period shall be treated as an appeal if filed within
the ten-day period for appeal, but subject to the requirements for
the perfection of an appeal.
Limitations: The Secretary of DOLE or his duly authorized
representatives cannot exercise the enforcement power under
Art. 128 of the Labor Code when the employer:
(1) Contests the findings of Labor Standard & Welfare Officer;
and
ART. 129. Recovery of wages, simple money claims and
other benefits. - Upon complaint of any interested party, the
Regional Director of the Department of Labor and
Employment or any of the duly authorized hearing officers
of the Department is empowered, through summary
proceeding and after due notice, to hear and decide any
matter involving the recovery of wages and other monetary
claims and benefits, including legal interest, owing to an
employee or person employed in domestic or household
service or househelper under this Code, arising from
employer-employee relations: Provided, That such
complaint does not include a claim for reinstatement:
Provided further, That the aggregate money claims of each
employee or househelper does not exceed Five thousand
pesos (P5,000.00). The Regional Director or hearing officer
shall decide or resolve the complaint within thirty (30)
calendar days from the date of the filing of the same. Any
sum thus recovered on behalf of any employee or
househelper pursuant to this Article shall be held in a special
deposit account by, and shall be paid on order of, the
Secretary of Labor and Employment or the Regional
Director directly to the employee or househelper concerned.
Any such sum not paid to the employee or househelper
because he cannot be located after diligent and reasonable
effort to locate him within a period of three (3) years, shall
be held as a special fund of the Department of Labor and
Employment to 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.

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 LABOR STANDARDS (Atty. Paulino Ungos)
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. (As amended by Section 2,
Republic Act No. 6715, March 21, 1989).
Adjudicatory Power: Article 129 confers upon the Regional
Director of DOLE the authority to hear and decide claims for
unpaid wages and other monetary claims and benefits filed
by an employee or person employed in domestic or household
service, whose employment has been terminated and does
not seek reinstatement anymore.
Requisites for Valid Exercise of the Adjudicatory Power:
(APES)
(a) The claim is Purely for recovery for unpaid wages and
other monetary claims and benefits;
(b) The claim is filed by an Employee, househelper or person
employed in domestic or household service;
(c) The employee, househelper or person employed in
domestic of household service has already been Separated
from service and does not seek reinstatement anymore; and
(d) The Aggregate money claims of each claimant does not
exceed P5,000.
Q: What if the requisites are incomplete?
A: The case will fall within the exclusive jurisdiction of the
Arbitration Branch of the NLRC.
Q: What are the issues of cases falling within the jurisdiction
of the NLRC?
A: (a) Praying for Reinstatement for termination of employment
and the claim does not exceed P5,000; (b) The monetary claim
exceeds P5,000; and (c) Illegal dismissal of the employee which
is no longer purely a money claim.
Title III
WORKING CONDITIONS FOR
SPECIAL GROUPS OF EMPLOYEES
Chapter I
EMPLOYMENT OF WOMEN
Changes made by R.A. No. 10151: (a) Renumbering of the
provisions of the Labor Code; (b) Prior to its enactment, the
Labor Code prohibited women from performing night work, it is
now limited to pregnant women and nursing mothers; and (c)
added Chapter 5 in this Title.
Coverage: All employees except those employed in agriculture,
stock raising, fishing, maritime transport and inland navigation.
Rights added:
(1) Right to free health assessment: (a) before taking up an
assignment as a night worker; (b) at regular intervals; and (c) if
they experience health problems caused by reason of performing
such work (Art. 155).
(2) Right to be transferred to a similar job which they are fit to
work (Art. 157).
(3) Right to safe working conditions (Art. 156).
(4) Right of pregnant women to alternatives to night work
during certain periods (Art. 158).
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(5) Right of pregnant women against dismissals and diminution
of benefits on account of pregnancy.
ART. 130. Facilities for women. - The Secretary of
Labor and Employment shall establish standards that will
ensure 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) To establish separate toilet rooms and lavatories for
men and women and provide at least a dressing room for
women;
(c) To establish a nursery in a workplace for the benefit
of the women employees therein; and
(d) To determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the like.
(As renumbered by R.A. No. 10151)
ART. 131. Maternity leave benefits. - (a) Every employer
shall grant to any pregnant woman employee who has
rendered an aggregate service of at least six (6) months for
the last twelve (12) months, maternity leave of at least two
(2) weeks prior to the expected date of delivery and another
four (4) 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 which 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 (4) deliveries by
a woman employee after the effectivity of this Code. (As
renumbered by R.A. No. 10151)
Maternity Leave
REQUISITES:
(1) Has paid at least 3 months of her SSS Contribution.
(2) Notification is given to the employer of the probable date of
delivery.
(3) Applies only to first 4 deliveries.
BENEFITS:
(1) 100% salary during her period of leave;
(2) 60-day leave for normal delivery and 78-day leave for
caesarean delivery;
(3) Full payment of delivery expenses to be advanced by
employer.
Paternity Leave
CONDITIONS FOR ENTITLEMENT:
(1) Employed at the time of delivery;
(2) Notified his employer of the pregnancy of his wife and her
expected date of delivery; and
(3) His wife has given birth, suffers a miscarriage or an abortion.
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 LABOR STANDARDS (Atty. Paulino Ungos)
IMPORTANT FACTORS:
(1) Married to his pregnant legal wife;
(2) Cohabitating with legal wife;
(3) Applicable only to first 4 deliveries;
(4) Employed at the time of delivery;
(5) Notice is given to his employer;
(6) Presentation of marriage certificate;
(7) Submission of birth certificate or medical certificate;
(8) Not convertible to cash; and
(9) Not applicable after 60-days from delivery.
BENEFITS:
(1) 7-day leave with pay.
Parental Leave for Solo Parents
REQUISITES:
(1) 1- year of service whether continuous or broken;
(2) Must notify the employer of the availment; and
(3) Must present his Solo Identification Card.
Q: Who is a solo parent?
A: (a) A woman who gives birth as a result of rape or crimes
against chastity even without a final conviction of the offender,
provided, that the mother keeps and raises the child;
(b) Parent left solo or alone with the responsibility of parenthood
due to:
(i) death of spouse;
(ii) detention or service of sentence of spouse for a criminal
conviction for at least one (1) year;
(iii) physical and/or mental incapacity of spouse as
certified by a public medical practitioner;
(iv) legal separation or de facto separation from spouse of
at least one (1) year, as long as he/she is entrusted with
the custody of the children;
(v) declaration of nullity or annulment of marriage as
decreed by a court r y a church as long as he/she is
entrusted with the custody of the children;
(vi) abandonment of spouse for at least one (1) year;
(c) Unmarried mother/father who has preferred to keep and rear
his/her child/children instead of having others care for them or
give them up to a welfare institution;
(d) Any other person who solely provides parental care and
support to a child or children, provided he/she is duly licensed as
a foster parent by the DSWD or duly appointed legal guardian
by the court;
(e) Any family member who assumes the responsibility of head
of a family as a result of the death, abandonment, disappearance,
or prolonged absence of the parents or solo parent, provided,
that such abandonment, disappearance, or absence lasts for at
least one (1) year.
BENEFITS:
(1) 7-day leave with pay which is non-cumulative.
ART. 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 be limited to, the application or use of
contraceptive pills and intrauterine devices.
(b) In coordination with other agencies of the
government engaged in the promotion of family planning,
the Department of Labor and Employment shall develop
and prescribe incentive bonus schemes to encourage family
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planning among female workers in any establishment or
enterprise. (As renumbered by R.A. No. 10151)
 ART. 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 employees 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. (As amended by R.A.
No. 6725 and renumbered by R.A. No. 10151).
 ART. 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. (As renumbered
by R.A. No. 10151)
Prohibited Acts under Article 134:
1) Requiring as a condition of employment that a female
employee shall not get married;
2) Requiring a female employee to resign upon getting married;
or
3) Dismissing or discriminating against female employee
because of her marriage.
ART. 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;
(3) To discharge or refuse the admission of such woman
upon returning to her work for fear that she may again be
pregnant. (As renumbered by R.A. No. 10151)
Prohibited Acts under Article 135:
1) Dismissing a female employee for the purpose og preventing
her from enjoying the maternity leave benefit and other benefits
or facilities;
2) Dismissing a female employee on account of her pregnancy,
or while on leave or in confinement due to her pregnancy; and
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 LABOR STANDARDS (Atty. Paulino Ungos)
3) Dismissing or refusing admission of a female employee upon
returning to her work for fear that she may again be pregnant.
ART. 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 establishments under the
effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of
Labor and Employment, shall be considered as an employee
of such establishment for purposes of labor and social
legislation. (As renumbered by R.A. No. 10151)
Chapter II
EMPLOYMENT OF MINORS
ART. 137. Minimum employable age. - (a) 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.
(b) 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.
(c) 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.
(As renumbered by R.A. No. 10151)
Q: What is the minimum age of employment?
A: Generally, the minimum age of employment is fifteen (15)
years old.
Q: Are there any exceptions?
A: Yes. There are two instances. The first is when the child
works directly under the sole responsibility of his parents or
legal guardian and only members of his family are employed
therein, provided that:
(a) the employment of the child neither endangers his
life, safety, health and morals, nor impairs his normal
development;
(b) his parent or legal guardian provides the said child
with the prescribed primary and/or secondary
education; and
(c) his employer obtains an employment permit.
The second is when the child’s employment or participation in
public and entertainment or information through cinema, theatre,
radio or television is essential.
Children below 15 Children 15 years
years old but below 18
years old
Hours of work Not more than 4 Not more than 8
hours a day but not hours a day but not
more than 20 hours more than 40 hours
a week a week
Cannot be made to Cannot be made to
Night Work
work from 8:00 work from 10:00
PM to 6:00 AM. PM to 6:00 AM
ART. 138. Prohibition against child discrimination. - No
employer shall discriminate against any person in respect to
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terms and conditions of employment on account of his age.
(As renumbered by R.A. No. 10151)
READ: Apex Mining Co. v. NLRC and Barcenas v. NLRC
(p.484)
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 139. Coverage. - This Chapter shall apply to all
persons rendering services in households for compensation.
"Domestic or household service" shall mean service in
the employer’s 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 employer’s household, including services of
family drivers. (As renumbered by R.A. No. 10151)
Non-compliance With the Stipulated Period (Art.147):
Househelper fails to comply: forfeit any unpaid salary due him
not exceeding fifteen (15) days.
Employer fails to comply: pay the househelper an indemnity
equivalent to fifteen (15) days pay.
ART. 140. 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. (As renumbered by R.A. No.
10151)
ART. 141. 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, Parañaque, Las Piñas,
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 R.A.
No. 7655 and renumbered by R.A. No. 10151).
ART. 142. 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. (As renumbered by
R.A. No. 10151)
 ART. 143. 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. (As renumbered by
R.A. No. 10151)
Q: What is the prohibition on assignment to non-household
work?
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 LABOR STANDARDS (Atty. Paulino Ungos)
A: What is prohibited is not the assignment of the houshelper to
a non-household work but the payment of a wage or salary rate
lower than those prescribed for the non-household work.
Q: When will Article 143 not apply?
A: When the househelper is paid with the proper commercial,
industrial or agricultural wage rate.
 ART. 144. 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
househelper’s compensation, unless there is a stipulation to
the contrary. (As renumbered by R.A. No. 10151)
 ART. 145. 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.
(As renumbered by R.A. No. 10151)
Working hours of househelpers:
Not more than 10 hours a day and must be allowed 4 days
vacation each month.
The househelper must be given 8 hours of rest (need not be
continuous) and 24-hours rest day (need not be continuous).
 ART. 146. 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. (As renumbered by R.A. No.
10151)
ART. 147. 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. (As renumbered by R.A. No.
10151)
 ART. 148. 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. (As renumbered by R.A. No. 10151)
 ART. 149. 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. (As renumbered by R.A. No. 10151)
ART. 150. 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. (As
renumbered by R.A. No. 10151)
Lex Talionis Fraternitas Inc. 2014 Edition
San Beda College Alabang
Domestic Helper Wages:
Metro Manila – P2,500
First Class Cities – P2,000
Municipalities – P1,500
Domestic Helper Benefits:
- 13th month pay
- Service incentive leave
- Covered by SSS, Philhealth and Pag-ibig
SSS Contributions:
- Wages is more than P5,000/month – employer and employee
pays for his own share
- Wages is less than P5,000/month – the employer shoulders
the househelper’s share.
Chapter IV
EMPLOYMENT OF HOMEWORKERS
ART. 151. Regulation of industrial homeworkers. - The
employment of industrial homeworkers and field personnel
shall be regulated by the government through the
appropriate regulations issued by the Secretary of Labor
and Employment to ensure the general welfare and
protection of homeworkers and field personnel and the
industries employing them. (As renumbered by R.A. No.
10151)
Industrial Homework is a system of production under which
work for an employer or contractor is carried out by a
homeworker at his home.
Limitation – Homework is not allowed in the manufatrue or
processing of:
(a) explosives, fireworks and similar articles;
(b) drugs and poisons; and
(c) other articles, the processing of which requires exposure to
toxic substances.


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
 ART. 152. Regulations of Secretary of Labor. - The
regulations or orders to be issued pursuant to this Chapter
shall be designed to assure the minimum terms and
conditions of employment applicable to the industrial
homeworkers or field personnel involved. (As renumbered by
R.A. No. 10151)

 ART. 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 an 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 to be processed
or fabricated in or about a home and then rebuys them after
such processing or fabrication, either by himself or through
some other person. (As renumbered by R.A. No. 10151)
Contractor or Subcontractor refers to any person who, for the
account or benefit of an employer, delivers or causes to be
delivered to a homeworker goods or articles to be processed in
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 LABOR STANDARDS (Atty. Paulino Ungos)
or about his home and thereafter to be returned, disposed of or
distributed in accordance with the direction of the employer.
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 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.
(As amended R.A. No. 10151)
Art. 155. Health Assessment – At their request, workers
shall have the right to undergo a health assessment without
charge and to receive advice how to reduce or avoid health
problems associated with their work:
(a) Before taking up an assigntment 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 worker’s consent and shall
not be used to their detriment. (As amended by R.A. No.
10151)
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
Department of Labor and Employment. (As amended by R.A.
No. 10151)
Art. 157. Transfer – Night workers who are certified
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 benefited 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. (As amended by R.A. No.
10151)
Lex Talionis Fraternitas Inc. 2014 Edition
San Beda College Alabang
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
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 a 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. (As
amended by R.A. No. 10151)
Art. 160. Social Services. – Appropriate social services
shall be provided for night workers and, where necessary,
for workers performing night work. (As amended by R.A.
No. 10151)
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. (As amended by R.A.
No. 10151)
Title I
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Chapter I
MEDICAL AND DENTAL SERVICES
ART. 162. First-aid treatment. - Every employer shall
keep in his establishment such first-aid medicines and
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 LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

equipment as the nature and conditions of work may

require, in accordance with such regulations as the
 (Finals Labstan) Required Medical and Dental Services
10 to 50 workers Graduate First-aider
Department of Labor and Employment shall prescribe.
Full-time registered nurse
The employer shall take steps for the training of a A full-time first-aider will
sufficient number of employees in first-aid treatment. 51 to 200 workers suffice if the workplace is
non-hazardous and a nurse

 ART. 163. Emergency medical and dental services. - It is not available.
shall be the duty of every employer to furnish his employees - Full-time registered nurse
in any locality with free medical and dental attendance and - Part-time physician
facilities consisting of: - Part-time dentist
(a) The services of a full-time registered nurse when the - Emergency clinic
201 to 300 workers
number of employees exceeds fifty (50) but not more than An emergency clinic shall
two hundred (200) except when the employer does not be provided regardless of
maintain hazardous workplaces, in which case, the services the nature of the
of a graduate first-aider shall be provided for the protection undertaking
of workers, where no registered nurse is available. The HAZARDOUS
Secretary of Labor and Employment shall provide by WORKPLACE:
appropriate regulations, the services that shall be required - Full-time registered nurse
where the number of employees does not exceed fifty (50) - Part-time physician
and shall determine by appropriate order, hazardous - Part-time dentist
workplaces for purposes of this Article; - Dental clinic
(b) The services of a full-time registered nurse, a part- - Infirmary or emergency
Over 300 workers
time physician and dentist, and an emergency clinic, when hospital with 1 bed capacity
the number of employees exceeds two hundred (200) but not for every 100 workers.
more than three hundred (300); and NON-HAZARDOUS
(c) The services of a full-time physician, dentist and a WORKPLACE:
full-time registered nurse as well as a dental clinic and an - Full-time registered nurse
infirmary or emergency hospital with one bed capacity for - Part-time physician
every one hundred (100) employees when the number of - Part-time dentist
employees exceeds three hundred (300). Note: In all workplaces where there are more than 1 workshift
in a day, the employer shall, in addition to the aforesaid
In cases of hazardous workplaces, no employer shall requirements, provide the services of full-time first-aider for
engage the services of a physician or a dentist who cannot each workshift.
stay in the premises of the establishment for at least two (2)
hours, in the case of those engaged on part-time basis, and
not less than eight (8) hours, in the case of those employed on 
 Hazardous Workplace:
full-time basis. Where the undertaking is non-hazardous in (a) Workers are exposed to dangerous, environmental elements,
nature, the physician and dentist may be engaged on contaminants or work conditions including radiation,
retainer basis, subject to such regulations as the Secretary of chemicals, fire, flammable substances, noxious components
Labor and Employment may prescribe to insure immediate and the like;
availability of medical and dental treatment and attendance (b) Workers are engaged in construction work, logging,
in case of emergency. (As amended by Presidential Decree NO. firefighting, mining, quarrying, blasting, stevedoring, dock
570-A, Section 26) work, deep sea fishing and mechanical farming;
(c) Workers are engaged in the manufacture or handling of
explosive and other pyrotechnic products;
(d) Workers are exposed to heavy or power-driven machinery or
equipment; or
(e) Workers are exposed to power-driven tools.


 ART. 164. When emergency hospital not required. - The
requirement for an emergency hospital or dental clinic shall
not be applicable in case there is a hospital or dental clinic
which is accessible from the employer’s establishment and
he makes arrangement for the reservation therein of the
necessary beds and dental facilities for the use of his
employees.
Requisites:
(1) In a written contract;
(2) Facilities for transportation;
(3) The hospital is 5km away in urban areas or 25mins away in
rural areas; and
(4) Must still maintain emergency clinics and Family planning
clinics.

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 LABOR STANDARDS (Atty. Paulino Ungos) San Beda College Alabang

ART. 165. Health program. - The physician engaged by Types of Safety Committees:
an employer shall, in addition to his duties under this

Chairman of
Committee

established
Chapter, develop and implement a comprehensive

TYPE E

Appointed
committee

Chairman
occupational health program for the benefit of the employees
of his employer.

Joint

by
an
ART. 166. Qualifications of health personnel. - The
physicians, dentists and nurses employed by employers

Less than 100

Appointed by
pursuant to this Chapter shall have the necessary training in

TYPE D

- 1 Foreman

Chairman
- 1 Worker
Manager
industrial medicine and occupational safety and health. The

workers
Secretary of Labor and Employment, in consultation with
industrial, medical, and occupational safety and health
associations, shall establish the qualifications, criteria and
conditions of employment of such health personnel.

Manager /
100 to 200

Authorized
TYPE C

Appointed
- 1 Foreman
represent-

Chairman
- 1 Worker
ART. 167. Assistance of employer. - It shall be the duty

workers

tative
of any employer to provide all the necessary assistance to
ensure the adequate and immediate medical and dental

by
attendance and treatment to an injured or sick employee in
case of emergency.

Safety Man
201 to 400

Authorized

top official
TYPE B

tative who
Manager /

- Phyisian /
represent-

must be a

- 1 Worker
workers

- 1 Super-
Chapter II

Nurse
OCCUPATIONAL HEALTH AND SAFETY

visor
ART. 168. Safety and health standards. - The Secretary
of Labor and Employment shall, by appropriate orders, set

Safety Man
Authorized

top official
TYPE A

ment heads
tative who
and enforce mandatory occupational safety and health

Manager /

represent-

- 2 Workers
- Company
must be a
Over 400

physician
- 2 Depart-
workers
standards to eliminate or reduce occupational safety and
health hazards in all workplaces and institute new, and
update existing, programs to ensure safe and healthful
working conditions in all places of employment.

SECRETARY
Coverage: The occupational safety and health standards set by

CHAIRMAN

the DOLE covers all establishments, workplaces, and other
undertakings, including agricultural enterprises, whether
operating for profit or not, except to:
(a) Those engaged in land, sea and air transportation, except
their garages, dry-docks, hangars, maintenance and repair shops
and offices;
(b) Residential places exclusively devoted to dwelling purposes;
and
(c) Activities of a lessee regarding safety of mining installations,
surface or underground, within the mining claim or lease.
Duty of employers:
(a) Keep and maintain his workplace free from work hazards;
(b) Give complete job safety instructions to all his workers; and
(c) Provide only approved devices and equipment in his
workplace.
Safety Committee – all establishments are required to have a
Safety Committee which should be organized within 1 month
from the date the business starts operating and should reorganize
every January of each year.
MEMBERS
Safety Man: The principal function of the Safety Man is to act
as the employer’s assistant and consultant in the application of
programs to remove the hazards from the workplace and to
correct unsafe work practices.
Q: What are considered as dangerous occurrences?
A: (a) Explosion of boilers used for heating or power;
(b) Explosion of a receiver or storage container;
(c) Bursting of revolving wheel, grinderstone or grinding wheel
operated by mechanical power;
(d) Collapse of crane, elevator, hoist or other appliances used for
raising or lowering persons or goods;
(e) Explosion or fire causing damage to the structure of any
room; and
(f) Electrical short circuit or failure of electrical machinery,
plant or apparatus.
ART. 169. Research. - It shall be the responsibility of
the Department of Labor and Employment to conduct
continuing studies and research to develop innovative
methods, techniques and approaches for dealing with
occupational safety and health problems; to discover latent
diseases by establishing causal connections between diseases
and work in environmental conditions; and to develop
medical criteria which will assure insofar as practicable that
no employee will suffer impairment or diminution in health,
functional capacity, or life expectancy as a result of his work
and working conditions.

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 LABOR STANDARDS (Atty. Paulino Ungos)
ART. 170. Training programs. - The Department of
Labor and Employment shall develop and implement
training programs to increase the number and competence
of personnel in the field of occupational safety and industrial
health.
Training of Personnel in Safety and Health:
(1) In Non-Hazardous Workplace
(a) 50 to 400 workers per shift – at least one of the
supervisors or technical personnel shall be trained and
assigned as part-time safety man.
(b) Over 400 workers per shift – at least two of its
supervisors shall be trained who shall work as part-time
safety man.
(2) In Hazardous Workplace
(a) 20 to 200 workers per shift – at least one of its
supervisors as part time safety man.
(b) Over 200 workers per shift – at least two of its
supervisors shall be trained who shall work as full-time
safety man.
The employment of a full-time safety man may not be required
if the employer enters into a written contract with a qualified
consulting organization which shall develop and carry out his
safety and health activities; provided that the consultant shall
conduct plant visits at least 4 hours a week and is subject to call
any time to conduct accident investigations and is available
during scheduled inspections or surveys by the Secretary of
Labor and Employment or his authorized representatives.
ART. 171. Administration of safety and health laws. - (a)
The Department of Labor and Employment shall be solely
responsible for the administration and enforcement of
occupational safety and health laws, regulations and
standards in all establishments and workplaces wherever
they may be located; however, chartered cities may be
allowed to conduct industrial safety inspections of
establishments within their respective jurisdictions where
they have adequate facilities and competent personnel for
the purpose as determined by the Department of Labor and
Employment and subject to national standards established
by the latter.
(b) The Secretary of Labor and Employment may,
through appropriate regulations, collect reasonable fees for
the inspection of steam boilers, pressure vessels and pipings
and electrical installations, the test and approval for safe use
of materials, equipment and other safety devices and the
approval of plans for such materials, equipment and devices.
The fee so collected shall be deposited in the national
treasury to the credit of the occupational safety and health
fund and shall be expended exclusively for the
administration and enforcement of safety and other labor
laws administered by the Department of Labor and
Employment.
Types of Inspection:
Technical Safety Inspection – refers to inspection for the
purpose of safety determination of boilers, pressure vessels,
internal combustion engines, electrical installations, elevators,
hoisting equipment and other mechanical equipment.
General Safety Inspection – refers to inspection of work
environment, including the location and operation of machinery
other than those covered by technical safety inspection,
adequacy of work space, ventilation, lighting, conditions of
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San Beda College Alabang
work environment, handling, storage or work procedures,
protection facilities and other safety and health hazards in
workplace.
Q: What can the Department of Labor order for violations
of labor standard?
A: It can order a stoppage of the establishment’s operation and
compel the employer at fault to pay his employees their wages
during the stoppage.
Title II
EMPLOYEES’ COMPENSATION AND STATE
INSURANCE FUND
Chapter I
POLICY AND DEFINITIONS
ART. 172. Policy. - The State shall promote and
develop a tax-exempt employees’ compensation program
whereby employees and their dependents, in the event of
work-connected disability or death, may promptly secure
adequate income benefit and medical related benefits.
Q: What are the benefits under Title II?
A: Medical benefit, Temporary total disability benefit,
Permanent total disability benefit, Permanent partial disability
benefit, death benefit and Funeral benefit.
Compensability of Disability or Death Arising From Injury
For disability or death arising from injury is compensable, the
injury must be the result of an employment accident that
satisfies all of the following conditions:
(a) The employee must have been injured at the place where his
work requires him to be;
(b) The employee must have been performing his official
functions; and
(c) If the injury is sustained elsewhere, the employee must have
been executing an order for the employer.
 DOCTRINES:
PERSONAL COMFORT DOCTRINE – Acts performed by
an employee within the time and space limits of his
employment, to minister to his personal comfort, such as
satisfaction of his thirst, hunger or other physical demands, or to
protect himself from excessive cold, shall be deemed incidental
to his employment and injuries the employee suffered in the
performance of such acts shall be considered compensable and
arising out of and in the course of employment.
SPECIAL ENGAGEMENT DOCTRINE – Any injury or
accident suffered by an employee shall be compensable if it
occurred during the period of recreation, where such recreation
was officially conducted by the company from which such
person is employed.
SHUTTLE BUS DOCTRINE – Any injury or accident
suffered by an employee while being in the shuttle bus provided
by his or her employee shall be compensable PROVIDED that
the trip when the injury incurred was during an official and
routine trip.
GOING-TO AND COMING-FROM PLACE OF WORK
DOCTRINE – Injury or death resulting from an accident while
the employee is going to, or coming from, the workplace is
compensable if the following conditions are definitively
established: (a) The act of the employee of going to, or coming
from, the workplace must have been a continuing act and he had
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not departed from his usual route to, or from, his workplace; and ART. 173. Definition of terms. - As used in this Title,
(b) If the employee was sent on a special errand, the special unless the context indicates otherwise:
errand must have been official and in connection with his work. (a) "Code" means the Labor Code of the Philippines
MINGLING OF PURPOSE DOCTRINE – When an instituted under Presidential Decree Numbered four
employee is ordered to perform work outside the workplace and hundred forty-two, as amended.
deviates from such directive to attend to some personal (b) "Commission" means the Employees’ Compensation
concerns, any injury or accident suffered by an employee, even Commission created under this Title.
during the period when such employee is attending to his (c) "SSS" means the Social Security System created
personal concerns, shall be compensable. under Republic Act Numbered Eleven hundred sixty-one, as
24-FOUR HOUR DUTY DOCTRINE – A soldier on active amended.
duty status is really on a 24-hour official duty status and is (d) "GSIS" means the Government Service Insurance
subject to military discipline and military law twenty-four hours System created under Commonwealth Act Numbered One
a day. He is subject to call and to the orders of his superior hundred eighty-six, as amended.
officers at all times, seven days a week, except when he is on (e) "System" means the SSS or GSIS, as the case may
vacation leave. be.
“INCREASED RISK” DOCTRINE – Diseases which are not (f) "Employer" means any person, natural or juridical,
classified as “occupational disease” are compensable only if the employing the services of the employee.
claimant can prove that the risk of contracting the disease was (g) "Employee" means any person compulsorily covered
increased by the working conditions. by the GSIS under Commonwealth Act Numbered One
WORK-AT-HOME DOCTRINE – When the work allows that hundred eighty-six, as amended, including the members of
an employee to perform his work in the comforts of his home, the Armed Forces of the Philippines, and any person
any injury or accident suffered by such employee is, incidental employed as casual, emergency, temporary, substitute or
to and while performing work, shall be compensable. (Lopez v. contractual, or any person compulsorily covered by the SSS
ECC. 228 SCRA 657. p.530) under Republic Act Numbered Eleven hundred sixty-one, as
amended.
Q: Is doing work at home compensable? (h) "Person" means any individual, partnership, firm,
A: Yes. If made under the discretion of employer. association, trust, corporation or legal representative
Q: Is death or injury while on vacation leave compensable? thereof.
A: Death or disability arising from injury sustained by an (i) "Dependent" means the legitimate, legitimated or
employee while on vacation leave is not compensable because legally adopted or acknowledged natural child who is
an employee who is on leave does not perform his usual duties. unmarried, not gainfully employed, and not over twenty-one
(21) years of age or over twenty-one (21) years of age
Q: Is death or disability arising from illness compensable? provided he is incapacitated and incapable of self-support
A: Death or disability is compensable: (a) if the illness is due to a physical or mental defect which is congenital or
classified as an occupational disease; or (b) if not classified as acquired during minority; the legitimate spouse living with
an occupational disease, the risk of contracting the same is the employee and the parents of said employee wholly
proven by substantial evidence to have been increased by the dependent upon him for regular support.
working conditions. (j) "Beneficiaries" means the dependent spouse until
he/she remarries and dependent children, who are the
Occupational Diseases: primary beneficiaries. In their absence, the dependent
1. Papiloma of the Bladder 14. Poisoning by Cadmium parents and subject to the restrictions imposed on dependent
2. Cancer or ulceration of the 15. Leukemia and lymphoma children, the illegitimate children and legitimate
skin or of the corneal 16. Cancer of the stomach descendants, who are the secondary beneficiaries: Provided,
surface of the eye 17. Cancer of the lungs, liver That the dependent acknowledged natural child shall be
3. Cataract and brain. considered as a primary beneficiary when there are no other
4. Deafness 18. Cardiovascular disease dependent children who are qualified and eligible for
5. Decompression Sickness 19. Cerebrovascular accidents monthly income benefit.
6. Dermatitis due to irritants 20. Malaria and (k) "Injury" means any harmful change in the human
and sensitizers Schistosomiasis organism from any accident arising out of and in the course
7. Infections 21. Pneumonia of the employment.
8. Ionizing Radiation Disease 22. Hernia (l) "Sickness" means any illness definitely accepted as
9. Poisoning 23. Bronchial Asthma an occupational disease listed by the Commission, or any
10. Pneumoconioses 24. Osteoarthritis illness caused by employment subject to proof that the risk
11. Diseases caused by 25. Viral Encephalitis of contracting the same is increased by working conditions.
abnormalities in 26. Peptic Ulcer For this purpose, the Commission is empowered to
temperature and humidity. 27. Pulmonary Tuberculosis determine and approve occupational diseases and work-
12. Vascular disturbances in 28. Viral Hepatitis related illnesses that may be considered compensable based
the upper extremities. 29. Essential Hypertension on peculiar hazards of employment.
13. Viral Hepatitis (m) "Death" means loss of life resulting from injury or
sickness.
 (n) "Disability" means loss or impairment of a physical
or mental function resulting from injury or sickness.

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 LABOR STANDARDS (Atty. Paulino Ungos)
(o) "Compensation" means all payments made under
this Title for income benefits and medical or related benefits.
(p) "Income benefit" means all payments made under
this Title to the providers of medical care, rehabilitation
services and hospital care.
(q) "Medical benefit" means all payments made under
this Title to the providers of medical care, rehabilitation
services and hospital care.
(r) "Related benefit" means all payments made under
this Title for appliances and supplies.
(s) "Appliances" means crutches, artificial aids and
other similar devices.
(t) "Supplies" means medicine and other medical,
dental or surgical items.
(u) "Hospital" means any medical facility, government
or private, authorized by law, an active member in good
standing of the Philippine Hospital Association and
accredited by the Commission.
(v) "Physician" means any doctor of medicine duly
licensed to practice in the Philippines, an active member in
good standing of the Philippine Medical Association and
accredited by the Commission.
(w) "Wages" or "Salary", insofar as they refer to the
computation of benefits defined in Republic Act No. 1161, as
amended, for SSS and Presidential Decree No. 1146, as
amended, for GSIS, respectively, except that part in excess
of Three Thousand Pesos.
(x) "Monthly salary credit" means the wage or salary
base for contributions as provided in Republic Act
Numbered Eleven hundred sixty-one, as amended, or the
wages or salary.
(y) "Average monthly salary credit" in the case of the
SSS means the result obtained by dividing the sum of the
monthly salary credits in the sixty-month period
immediately following the semester of death or permanent
disability by sixty (60), except where the month of death or
permanent disability falls within eighteen (18) calendar
months from the month of coverage, in which case, it is the
result obtained by dividing the sum of all monthly salary
credits paid prior to the month of contingency by the total
number of calendar months of coverage in the same period.
(z) "Average daily salary credit" in the case of the SSS
means the result obtained by dividing the sum of the six (6)
highest monthly salary credits in the twelve-month period
immediately preceding the semester of sickness or injury by
one hundred eighty (180), except where the month of injury
falls within twelve (12) calendar months from the first
month of coverage, in which case it is the result obtained by
dividing the sum of all monthly salary credits by thirty (30)
times the number of calendar months of coverage in the
period.
In the case of the GSIS, the average daily salary credit
shall be the actual daily salary or wage, or the monthly
salary or wage divided by the actual number of working
days of the month of contingency.
(aa) "Quarter" means a period of three (3) consecutive
months ending on the last days of March, June, September
and December.
(bb) "Semester" means a period of two consecutive
quarters ending in the quarter of death, permanent
disability, injury or sickness.
(cc) "Replacement ratio" - The sum of twenty percent
and the quotient obtained by dividing three hundred by the
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sum of three hundred forty and the average monthly salary
credit.
(dd) "Credited years of service" - For a member covered
prior to January, 1975, nineteen hundred seventy-five minus
the calendar year of coverage, plus the number of calendar
years in which six or more contributions have been paid
from January, 1975 up to the calendar year containing the
semester prior to the contingency. For a member covered on
or after January, 1975, the number of calendar years in
which six or more contributions have been paid from the
year of coverage up to the calendar year containing the
semester prior to the contingency.
(ee) "Monthly income benefit" means the amount
equivalent to one hundred fifteen percent of the sum of the
average monthly salary credit multiplied by the replacement
ratio, and one and a half percent of the average monthly
salary credit for each credited year of service in excess of ten
years: Provided, That the monthly income benefit shall in no
case be less than two hundred fifty pesos.
Chapter II
COVERAGE AND LIABILITY
 ART. 174. Compulsory coverage. - Coverage in the State
Insurance Fund shall be compulsory upon all employers and
their employees not over sixty (60) years of age: Provided,
That an employee who is over (60) years of age and paying
contributions to qualify for the retirement or life insurance
benefit administered by the System shall be subject to
compulsory coverage.
Covered Employees. All employees not over 60 years old,
whether belonging to the public or private sector, are covered.
Employees who are over 60 years old are covered if they have
been paying contributions to the SSS or GSIS.
Public Sector Employees are those covered by the Government
Service Insurance System.
Private Sector Employees are those who are covered by the
Social Security System.
Coverage of Filipinos Working Abroad – Filipinos working
abroad for an employer who carries on in the Philippines any
trade, business, industry, undertaking or activity of any kind are
covered, and therefore, entitled to the same benefits given to
employees working in the Philippines.
ART. 175. Foreign employment. - The Commission shall
ensure adequate coverage of Filipino employees employed
abroad, subject to regulations as it may prescribe.
ART. 176. Effective date of coverage. - Compulsory
coverage of the employer during the effectivity of this Title
shall take effect on the first day of his operation, and that of
the employee, on the date of his employment.
 ART. 177. Registration. - Each employer and his
employees shall register with the System in accordance with
its regulations.
The procedure for registration is set forth in Section 2, Rule II of
the Amended Rules on Employees’ Compensation which reads:
SEC. 2. GSIS. – The following guidelines shall apply
to the public sector:
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(1) Every employer operating before January 1, 1975
shall register not later than March 31, 1975;
(2) Every employer operating on or after January 1,
1975 shall register within one month from the
first day of operation; and
(3) Every employee shall be registered through his
employer within one month from the date of
employment.
Q: When is an employee deemed reported?
A: An employee is deemed reported for coverage if the
SSS or GSIS has received a report or written
communication about him from his employer and
Employee’s Compensation contribution paid in his name
before a compensable contingency occurs.
Q: What is the effect of failure to report an employee?
A: Failure on the part of the employer to report his
employee for coverage shall be penalized as follows:
(1) In case of failure or refusal to register employees, the
employer or responsible official who committed the
violation shall be punished with fine of not less than P1,000
nor more than P10,000 and/or imprisonment for the
duration of the violation or non-compliance or until such
time that rectification of the violation has been made;
(2) In case of compensable contingency occurs after 30
days from employment and before the System receives any
report, his employer shall be liable to the System for the
lump sum equivalent to the benefits to which he or his
dependents may be entitled.
 ART. 178. Limitation of liability. - The State Insurance
Fund shall be liable for compensation to the employee or his
dependents, except when the disability or death was
occasioned by the employee’s intoxication, willful intention
to injure or kill himself or another, notorious negligence, or
otherwise provided under this Title.
Factors That Bar Compensability
(a) Intoxication;
(b) Willful intention to injure or kill himself or another; or
(c) Gross negligence.
Intoxication – refers to a person’s condition in being under the
influence of liquor or prohibited drugs to the extent that his acts,
words or conduct is impaired visibly, as to prevent him from
physically and mentally engaging in the duties of his
employment.
To constitute a ground for denial of compensation, the degree of
intoxication must be such that it rendered the employee
incapable of doing his work. The accident or injury must be
shown by clear and convincing proof that it arose out of his
drunken condition. It is incumbent upon the party invoking
drunkenness as a defense to show that the employee was
extremely drunk.
Although intoxication may be a contributory cause to his injury,
it must be shown that the intoxication was the proximate cause
of death or injury and the burden of proof lies on him who raises
drunkenness as a defense.
Willful Intention to Injure/Kill Himself or Another
A disability or death not caused by the employment but by the
employee’s own voluntary act. The compensation applies only
to work-connected injury, sickness, disability or death.
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Notorious Negligence
Notorious negligence is something more than mere or simple
negligence or contributory negligence. It signifies a deliberate
act of the employee to disregard his own personal safety. It is
more than mere carelessness or lack of foresight. It is failure to
observe any or slight care. It is tantamount to gross negligence.
Disobedience to rules, orders, and/or prohibition does not per se
constitute notorious negligence, if no intention can be attributed
to the injured to end his life.
Notorious negligence is exemplified by a seaman who jumps
into the sea to retrieve a 2-peso bill, as a result of which he was
drowned. But an employee who inadvertently placed his left
hand on a paper cutting machine which he thought at the time
was not working as a result of which, four of his fingers were
cut, is not guilty of notorious negligence because the employee
acted in a casual manner in which anyone might have acted
under similar conditions.
ART. 179. Extent of liability. - Unless otherwise
provided, the liability of the State Insurance Fund under this
Title shall be exclusive and in place of all other liabilities of
the employer to the employee, his dependents or anyone
otherwise entitled to receive damages on behalf of the
employee or his dependents. The payment of compensation
under this Title shall not bar the recovery of benefits as
provided for in Section 699 of the Revised Administrative
Code, Republic Act Numbered Eleven hundred sixty-one, as
amended, Republic Act Numbered Forty-eight hundred
sixty-four as amended, and other laws whose benefits are
administered by the System or by other agencies of the
government. (As amended by Presidential Decree No. 1921).
Q: Can the injured employee avail of the compensation
benefits under the Labor Code and sue the employer for
damages under the Civil Code?
A: [First View] The injured employee (or his heirs, in case of
death) may initiate an action for damages (not compensation
under the Workmen’s Compensation Act) on the basis of
negligence of the employer pursuant to the Civil Code.
[Second View] The remedy of an employee for work-connected
injury or accident is exclusively restricted to seeking the limited
compensation provided under the Workmen’s Compensation
Act.
[Third View] The employee or his heirs can choose on whether
to avail of the limited compensation under the Workmen’s
Compensation Act or sue for higher damages under the Civil
Code by reason of the employer’s negligence.
But once the choice has been made, the employee or his heris
can no longer opt for the other remedy.
Distinction Between Compensation and Damages.
Compensation is given to mitigate the harshness and insecurity
of industrial life for the workman and his family. So long as the
death, injury or illness is wok-connected, entitlement to
compensation exists, regardless of the negligence of the
employer.
Damages are given in order to vindicate a wrongful invasion of
a right. It is recoverable by a person by a person who has
sustained injury either in person, property or relative rights,
through the act or default of another.
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ART. 180. Liability of third party/ies. - (a) When the
disability or death is caused by circumstances creating a
legal liability against a third party, the disabled employee or
the dependents, in case of his death, shall be paid by the
System under this Title. In case benefit is paid under this
Title, the System shall be subrogated to the rights of the
disabled employee or the dependents, in case of his death, in
accordance with the general law.
(b) Where the System recovers from such third party
damages in excess of those paid or allowed under this Title,
such excess shall be delivered to the disabled employee or
other persons entitled thereto, after deducting the cost of
proceedings and expenses of the System.
Third Party refers to any person who is not the employer of
the injured employee. A co-employee would be considered a
third party.
Q: Is injury or death caused by a third party compensable?
A: Yes. If all the requisites for compensability are met.
However, the claimant cannot receive payment twice for the
same injury.
Compensability of Disability or Death Arising From Injury
For disability or death arising from injury is compensable, the
injury must be the result of an employment accident that
satisfies all of the following conditions:
(a) The employee must have been injured at the place where his
work requires him to be;
(b) The employee must have been performing his official
functions; and
(c) If the injury is sustained elsewhere, the employee must have
been executing an order for the employer.
ART. 181. Deprivation of the benefits. - Except as
otherwise provided under this Title, no contract, regulation
or device whatsoever shall operate to deprive the employee
or his dependents of any part of the income benefits and
medical or related services granted under this Title. Existing
medical services being provided by the employer shall be
maintained and continued to be enjoyed by their employees.
Q: What are the benefits under the Employees’
Compensation Law? (Bar Question)
A: The benefits under the employees’ compensation law are in
the form of income or services, and consist of the following:
(a) Medical services, appliances and supplies;
(b) Rehabilitation services;
(c) Permanent total disability;
(d) Permanent partial disability;
(e) Death; and
(f) Funeral.
Chapter III
ADMINISTRATION
ART. 182. Employees’ Compensation Commission. - (a)
To initiate, rationalize, and coordinate the policies of the
employees’ compensation program, the Employees’
Compensation Commission is hereby created to be
composed of five ex-officio members, namely: the Secretary
of Labor and Employment as Chairman, the GSIS General
Manager, the SSS Administrator, the Chairman of the
Philippine Medical Care Commission, and the Executive
Director of the ECC Secretariat, and two appointive
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members, one of whom shall represent the employees and
the other, the employers, to be appointed by the President of
the Philippines for a term of six years. The appointive
member shall have at least five years experience in
workmen’s compensation or social security programs. All
vacancies shall be filled for the unexpired term only. (As
amended by Section 19 [c], Executive Order No. 126).
(b) The Vice Chairman of the Commission shall be
alternated each year between the GSIS General Manager
and the SSS Administrator. The presence of four members
shall constitute a quorum. Each member shall receive a per
diem of two hundred pesos for every meeting that is actually
attended by him, exclusive of actual, ordinary and necessary
travel and representation expenses. In his absence, any
member may designate an official of the institution he serves
on full-time basis as his representative to act in his behalf.
(As amended by Section 2, Presidential Decree No. 1368).
(c) The general conduct of the operations and
management functions of the GSIS or SSS under this Title
shall be vested in its respective chief executive officers, who
shall be immediately responsible for carrying out the policies
of the Commission.
(d) The Commission shall have the status and category
of a government corporation, and it is hereby deemed
attached to the Department of Labor and Employment for
policy coordination and guidance. (As amended by Section 2,
Presidential Decree No. 1368).
ART. 183. Powers and duties. - The Commission shall
have the following powers and duties:
(a) To assess and fix a rate of contribution from all
employers;
(b) To determine the rate of contribution payable by an
employer whose records show a high frequency of work
accidents or occupational diseases due to failure by the said
employer to observe adequate safety measures;
(c) To approve rules and regulations governing the
processing of claims and the settlement of disputes arising
therefrom as prescribed by the System;
(d) To initiate policies and programs toward adequate
occupational health and safety and accident prevention in
the working environment, rehabilitation other than those
provided for under Article 190 hereof, and other related
programs and activities, and to appropriate funds therefor;
(As amended by Section 3, Presidential Decree No. 1368).
(e) To make the necessary actuarial studies and
calculations concerning the grant of constant help and
income benefits for permanent disability or death and the
rationalization of the benefits for permanent disability and
death under the Title with benefits payable by the System
for similar contingencies: Provided, That the Commission
may upgrade benefits and add new ones subject to approval
of the President: and Provided, further, That the actuarial
stability of the State Insurance Fund shall be guaranteed:
Provided, finally, That such increases in benefits shall not
require any increases in contribution, except as provided for
in paragraph (b) hereof; (As amended by Section 3,
Presidential Decree No. 1641).
(f) To appoint the personnel of its staff, subject to civil
service law and rules, but exempt from WAPCO law and
regulations;
(g) To adopt annually a budget of expenditures of the
Commission and its staff chargeable against the State
Insurance Fund: Provided, That the SSS and GSIS shall
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advance on a quarterly basis, the remittances of allotment of
the loading fund for the Commission’s operational expenses
based on its annual budget as duly approved by the
Department of Budget and Management; (As amended by
Section 3, Presidential Decree No. 1921).
(h) To have the power to administer oath and
affirmation, and to issue subpoena and subpoena duces
tecum in connection with any question or issue arising from
appealed cases under this Title;
(i) To sue and be sued in court;
(j) To acquire property, real or personal, which may be
necessary or expedient for the attainment of the purposes of
this Title;
(k) To enter into agreements or contracts for such
services and as may be needed for the proper, efficient and
stable administration of the program;
(l) To perform such other acts as it may deem
appropriate for the attainment of the purposes of the
Commission and proper enforcement of the provisions of
this Title. (As amended by Section 18, Presidential Decree
No. 850).
ART. 184. Management of funds. - All revenues
collected by the System under this Title shall be deposited,
invested, administered and disbursed in the same manner
and under the same conditions, requirements and
safeguards as provided by Republic Act Numbered eleven
hundred sixty-one, as amended, with regard to such other
funds as are thereunder being paid to or collected by the SSS
and GSIS, respectively: Provided, That the Commission,
SSS and GSIS may disburse each year not more than twelve
percent of the contribution and investment earnings
collected for operational expenses, including occupational
health and safety programs, incidental to the carrying out of
this Title.
ART. 185. Investment of funds. - Provisions of existing
laws to the contrary notwithstanding, all revenues as are not
needed to meet current operational expenses under this Title
shall be accumulated in a fund to be known as the State
Insurance Fund, which shall be used exclusively for payment
of the benefits under this Title, and no amount thereof shall
be used for any other purpose. All amounts accruing to the
State Insurance Fund, which is hereby established in the SSS
and GSIS, respectively, shall be deposited with any
authorized depository bank approved by the Commission, or
invested with due and prudent regard for the liquidity needs
of the System. (As amended by Section 4, Presidential Decree
No. 1368)
ART. 186. Settlement of claims. - The System shall have
original and exclusive jurisdiction to settle any dispute
arising from this Title with respect to coverage, entitlement
to benefits, collection and payment of contributions and
penalties thereon, or any other matter related thereto,
subject to appeal to the Commission, which shall decide
appealed cases within twenty (20) working days from the
submission of the evidence.
ART. 187. Review. - Decisions, orders or resolutions of
the Commission may be reviewed on certiorari by the
Supreme Court on question of law upon petition of an
aggrieved party within ten (10) days from notice thereof.
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ART. 188. Enforcement of decisions. - (a) Any decision,
order or resolution of the Commission shall become final
and executory if no appeal is taken therefrom within ten (10)
days from notice thereof. All awards granted by the
Commission in cases appealed from decisions of the System
shall be effected within fifteen days from receipt of notice.
(b) In all other cases, decisions, orders and resolutions
of the Commission which have become final and executory
shall be enforced and executed in the same manner as
decisions of the Court of First Instance, and the Commission
shall have the power to issue to the city or provincial sheriff
or to the sheriff whom it may appoint, such writs of
execution as may be necessary for the enforcement of such
decisions, orders or resolutions, and any person who shall
fail or refuse to comply therewith shall, upon application by
the Commission, be punished by the proper court for
contempt.
Chapter IV
CONTRIBUTIONS
ART. 189. Employers’ contributions. - (a) Under such
regulations as the System may prescribe, beginning as of the
last day of the month when an employee’s compulsory
coverage takes effect and every month thereafter during his
employment, his employer shall prepare to remit to the
System a contribution equivalent to one percent of his
monthly salary credit.
b) The rate of contribution shall be reviewed
periodically and subject to the limitations herein provided,
may be revised as the experience in risk, cost of
administration and actual or anticipated as well as
unexpected losses, may require.
(c) Contributions under this Title shall be paid in their
entirety by the employer and any contract or device for the
deductions of any portion thereof from the wages or salaries
of the employees shall be null and void.
(d) When a covered employee dies, becomes disabled or
is separated from employment, his employer’s obligation to
pay the monthly contribution arising from that employment
shall cease at the end of the month of contingency and
during such months that he is not receiving wages or salary.
Payment of Premium Contributions – Sole Obligation of
Employer
The obligation to pay premium contributions for employees’
compensation is the sole obligation of the employer. Any
contract or device for the deduction of any portion thereof from
the wages is null and void. The contributions required are non-
refundable.
Effect of Death or Separation from Employment
When a covered employee dies during employment or is
separated from employment, his employer’s obligation to pay
the monthly contribution shall cease on the last day of the month
of the contingency.
Effect of Disability
When a covered employee becomes disabled during
employment, his employer’s obligation to pay the monthly
contribution arising from that employment shall be suspended
during the months that he is not receiving salary or wages.
ART. 190. Government guarantee. - The Republic of the
Philippines guarantees the benefits prescribed under this
Title, and accepts general responsibility for the solvency of
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the State Insurance Fund. In case of any deficiency, the same
shall be covered by supplemental appropriations from the
national government.
Chapter V
MEDICAL BENEFITS
 ART. 191. Medical services. - Immediately after an
employee contracts sickness or sustains an injury, he shall be
provided by the System during the subsequent period of his
disability with such medical services and appliances as the
nature of his sickness or injury and progress of his recovery
may require, subject to the expense limitation prescribed by
the Commission.
ART. 192. Liability. - The System shall have the
authority to choose or order a change of physician, hospital
or rehabilitation facility for the employee, and shall not be
liable for compensation for any aggravation of the
employee’s injury or sickness resulting from unauthorized
changes by the employee of medical services, appliances,
supplies, hospitals, rehabilitation facilities or physicians.
ART. 193. Attending physician. - Any physician
attending an injured or sick employee shall comply with all
the regulations of the System and submit reports in
prescribed forms at such time as may be required
concerning his condition or treatment. All medical
information relevant to the particular injury or sickness
shall, on demand, be made available to the employee or the
System. No information developed in connection with
treatment or examination for which compensation is sought
shall be considered as privileged communication.
ART. 194. Refusal of examination or treatment. - If the
employee unreasonably refuses to submit to medical
examination or treatment, the System shall stop the payment
of further compensation during such time as such refusal
continues. What constitutes an unreasonable refusal shall be
determined by the System which may, on its own initiative,
determine the necessity, character and sufficiency of any
medical services furnished or to be furnished.
ART. 195. Fees and other charges. - All fees and other
charges for hospital services, medical care and appliances,
including professional fees, shall not be higher than those
prevailing in wards of hospitals for similar services to
injured or sick persons in general and shall be subject to the
regulations of the Commission. Professional fees shall only
be appreciably higher than those prescribed under Republic
Act Numbered sixty-one hundred eleven, as amended,
otherwise known as the Philippine Medical Care Act of 1969.
 ART. 196. Rehabilitation services. - (a) The System shall,
as soon as practicable, establish a continuing program, for
the rehabilitation of injured and handicapped employees
who shall be entitled to rehabilitation services, which shall
consist of medical, surgical or hospital treatment, including
appliances if they have been handicapped by the injury, to
help them become physically independent.
(b) As soon as practicable, the System shall establish
centers equipped and staffed to provide a balanced program
of remedial treatment, vocational assessment and
preparation designed to meet the individual needs of each
handicapped employee to restore him to suitable
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employment, including assistance as may be within its
resources, to help each rehabilitee to develop his mental,
vocational or social potential.
Rehabilitation is the process by which there is provided a
balanced program of remedial treatment, vocational assessment,
and preparation designed to meet the individual needs of each
handicapped employee to restore him to suitable employment,
including assistance as may be within its resources to help each
rehabilitee to develop his mental, vocational, or social potential.
Conditions for Entitlement
(a) He has been reported to the SSS or the GSIS;
(b) He sustains a permanent disability as a result of a
compensable injury or sickness; and
(c) He has not been placed in suitable employment.
Period of Entitlement
Rehabilitation services shall be provided during the period of
disability unless suspended or terminated under the following
grounds:
(a) Upon suitable employment;
(b) Upon suspension or termination of such services; or
(c) by self-termination.
Limitation
(a) Intoxication
(b) Willful Intention; or
(c) Notorious negligence
Chapter VI
DISABILITY BENEFITS
ART. 197. Temporary total disability. - (a) Under such
regulations as the Commission may approve, any employee
under this Title who sustains an injury or contracts sickness
resulting in temporary total disability shall, for each day of
such a disability or fraction thereof, be paid by the System
an income benefit equivalent to ninety percent of his average
daily salary credit, subject to the following conditions: the
daily income benefit shall not be less than Ten Pesos nor
more than Ninety Pesos, nor paid for a continuous period
longer than one hundred twenty days, except as otherwise
provided for in the Rules, and the System shall be notified of
the injury or sickness.
(b) The payment of such income benefit shall be in
accordance with the regulations of the Commission.
Temporary total disability is the healing time or that period of
time in which the claimant employee, by reason of the injury or
sickness, is unable to perform any kind of labor.
Q: When is a disability total and temporary?
A: (a) If as a result of the injury or sickness, the employee is
unable to perform any gainful occupation for a continuous
period not exceeding 120 days; or
(b) If the injury or sickness still requires medical attendance
beyond 120 days but not to exceed 240 days from the onset of
the disability.
Q: What if it exceeds 240 days?
A: If the claimant is still sick and unable to report for work as
established by proper medical examination, the disability shall
be considered permanent and total.
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Q: Is it the injury that is compensated?
A: No. It is not the injury that is compensated, but the incapacity
to work resulting in the impairment of one’s earning capacity.
Conditions for entitlement
(a) The employee should have been duly reported to the SSS or
the GSIS;
(b) The employee sustains the temporary total disability as a
result of the injury or sickness; and
(c) The SSS or the GSIS has been duly notified of the injury or
sickness which caused his disability.
 ART. 198. Permanent total disability. - (a) Under such
regulations as the Commission may approve, any employee
under this Title who contracts sickness or sustains an injury
resulting in his permanent total disability shall, for each
month until his death, be paid by the System during such a
disability, an amount equivalent to the monthly income
benefit, plus ten percent thereof for each dependent child,
but not exceeding five, beginning with the youngest and
without substitution: Provided, That the monthly income
benefit shall be the new amount of the monthly benefit for
all covered pensioners, effective upon approval of this
Decree.
(b) The monthly income benefit shall be guaranteed for
five years, and shall be suspended if the employee is
gainfully employed, or recovers from his permanent total
disability, or fails to present himself for examination at least
once a year upon notice by the System, except as otherwise
provided for in other laws, decrees, orders or Letters of
Instructions.
(c) The following disabilities shall be deemed total and
permanent:
(1) Temporary total disability lasting continuously
for more than one hundred twenty days, except as
otherwise provided for in the Rules;
 (2) Complete loss of sight of both eyes;
(3) Loss of two limbs at or above the ankle or wrist;
(4) Permanent complete paralysis of two limbs;
(5) Brain injury resulting in incurable imbecility or
insanity; and
(6) Such cases as determined by the Medical
Director of the System and approved by the
Commission.
(d) The number of months of paid coverage shall be
defined and approximated by a formula to be approved by
the Commission.
ART. 199. Permanent partial disability. - (a) Under such
regulations as the Commission may approve, any employee
under this Title who contracts sickness or sustains an injury
resulting in permanent partial disability shall, for each
month not exceeding the period designated herein, be paid
by the System during such a disability an income benefit for
permanent total disability.
(b) The benefit shall be paid for not more than the
period designated in the following schedules:
Complete and permanent No. of Months
loss of the use of
One thumb - 10
One index finger - 8
One middle finger - 6
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One ring finger - 5
One little finger - 3
One big toe - 6
One toe - 3
One arm - 50
One hand - 39
One foot - 31
One leg - 46
One ear - 10
Both ears - 20
Hearing of one ear - 10
Hearing of both ears - 50
Sight of one eye - 25
(c) A loss of a wrist shall be considered as a loss of the
hand, and a loss of an elbow shall be considered as a loss of
the arm. A loss of an ankle shall be considered as loss of a
foot, and a loss of a knee shall be considered as a loss of the
leg. A loss of more than one joint shall be considered as a
loss of one-half of the whole finger or toe: Provided, That
such a loss shall be either the functional loss of the use or
physical loss of the member.
(d) In case of permanent partial disability less than the
total loss of the member specified in the preceding
paragraph, the same monthly income benefit shall be paid
for a portion of the period established for the total loss of the
member in accordance with the proportion that the partial
loss bears to the total loss. If the result is a decimal fraction,
the same shall be rounded off to the next higher integer.
(e) In cases of simultaneous loss of more than one
member or a part thereof as specified in this Article, the
same monthly income benefit shall be paid for a period
equivalent to the sum of the periods established for the loss
of the member or the part thereof. If the result is a decimal
fraction, the same shall be rounded off to the next higher
integer.
(f) In cases of injuries or illnesses resulting in a
permanent partial disability not listed in the preceding
schedule, the benefit shall be an income benefit equivalent to
the percentage of the permanent loss of the capacity to work.
(g) Under such regulations as the Commission may
approve, the income benefit payable in case of permanent
partial disability may be paid in monthly pension or in lump
sum if the period covered does not exceed one year.
Permanent Partial Disability is when the employee sufers a
lasting partial loss of the use of any part of his body as a result
of injury or sickness.
Conditions to entitlement
(a) The employee should have been reported to the SSS or the
GSIS;
(b) He sustains permanent partial disability as a result of injury
or sickness; and
(c) The SSS or the GSIS has been duly notified of the injury or
sickness which caused his disability.
Chapter VII
DEATH BENEFITS
ART. 200. Death. - (a) Under such regulations as the
Commission may approve, the System shall pay to the
primary beneficiaries upon the death of the covered
employee under this Title, an amount equivalent to his
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monthly income benefit, plus ten percent thereof for each
dependent child, but not exceeding five, beginning with the
youngest and without substitution, except as provided for in
paragraph (j) of Article 167 hereof: Provided, however, That
the monthly income benefit shall be guaranteed for five
years: Provided, further, That if he has no primary
beneficiary, the System shall pay to his secondary
beneficiaries the monthly income benefit but not to exceed
sixty months: Provided, finally, That the minimum death
benefit shall not be less than fifteen thousand pesos.
(b) Under such regulations as the Commission may
approve, the System shall pay to the primary beneficiaries
upon the death of a covered employee who is under
permanent total disability under this Title, eighty percent of
the monthly income benefit and his dependents to the
dependents’ pension: Provided, That the marriage must
have been validly subsisting at the time of disability:
Provided, further, That if he has no primary beneficiary, the
System shall pay to his secondary beneficiaries the monthly
pension excluding the dependents’ pension, of the remaining
balance of the five-year guaranteed period: Provided,
finally, That the minimum death benefit shall not be less
than fifteen thousand pesos.
(c) The monthly income benefit provided herein shall be
the new amount of the monthly income benefit for the
surviving beneficiaries upon the approval of this decree.
(d) Funeral benefit. - A funeral benefit of Three
thousand pesos (P3,000.00) shall be paid upon the death of a
covered employee or permanently totally disabled pensioner.
Entitlement to Death Benefits
The rule is that only the primary beneficiaries are entitled to
death benefits. In the absence of primary beneficiaries, the
secondary beneficiaries are entitled to the death benefit. If the
deceased employee has no primary or secondary beneficiaries at
the time of death, the death benefit shall accrue to the
Employee’s Compensation Fund.
Q: Who are primary beneficiaries?
A: The primary beneficiaries are:
(a) The legitimate spouse living with the employee at the time of
the employee’s death, until he or she marries; and
(b) The legitimate, legitimated or legally adopted children who
are:
(i) unmarried;
(ii) not gainfully employed; and
(iii) not over 21 years old; or if over 21 years old, he is
incapable of self-support due to physical or mental defect
which is congenital or acquired during minority.
Q: Who are secondary beneficiaries?
A: The secondary beneficiaries are:
(a) The legitimate parents wholly dependent upon the employee
for support;
(b) The legitimate descendents and illegitimate children who
are:
(i) unmarried;
(ii) not gainfully employed; and
(iii) not over 21 years old; or if over 21 years old, he is
incapable of self-support due to physical or mental defect
which is congenital or acquired during minority.
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Policy on Surviving Spouse
General Rule: The surviving spouse is entitled to the benefit
only if he or she is living with the deceased employee at the time
of death.
Exceptions: Even if the surviving spouse is not living with the
deceased employee at the time of death, the spouse may still be
entitled to death benefits if because: (PAPAS need LAB PASS)
(1) Refusal of the covered employee to continue living with the
surviving spouse; or the employee’s Abandonment of the
said spouse without justifiable or valid cause;
(2) Attempt on the part of the covered employee against the life
of the surviving spouse or common child of the spouse;
(3) Commission of an act of Sexual abuse against the
surviving spouse, common child of the spouse by the
covered employee;
(4) The covered employee’s recurrent commission of Physical
violence, or grossly Abusive conduct against the surviving
spouse or common child of the spouse;
(5) The covered employee’s infliction of Physical violence, or
imposition of moral duress to compel the surviving spouse,
common child of the spouse to change their religious or
political affiliation;
(6) Attempt of the covered employee to corrupt or induce the
surviving spouse or common child of the spouse to engage
in Prostitution, or to make them connive with the employee
in such act of corruption or inducement;
(7) Drug addiction or habitual alcoholism of the covered
employee;
(8) Lesbianism or homosexuality of the covered employee;
(9) Contraction of Bigamous marriage by the covered
employee, whether in the Philippines or abroad;
(10) Sexual infidelity or perversion of the covered employee;
(11) The covered employee’s act of allowing the surviving
spouse or common child to be subjected to Acts of
lasciviousness; and
(12) The covered employee’s act of contraction of serious
Sexually transmitted disease extramaritally.
Conditions for entitlement:
(a) The employee has been duly reported to the SSS or the
GSIS;
(b) He died as a result of an injury or sickness; and
(c) The SSS or GSIS has been duly notified of his death, as well
as the injury or sickness which caused his death.
Period for Entitlement
The income benefit shall start at the month of death and shall
continue to be paid for as long as the beneficiaries are entitled
thereto. The monthly income benefit which in no case shall be
less than P15,000, shall be guaranteed for 5 years. Thereafter,
the beneficiaries shall be paid the monthly income benefit for as
long as they are entitled thereto.
In case of secondary beneficiaries, the income benefit which
is payable in monthly pension, shall not exceed the period of 60
months and the aggregate income benefit shall not be less than
P15,000.
Death Benefit in Case of Presumptive Death
If one is declared presumptively dead, payment of benefit
shall be reckoned from the date he was declared presumptively
dead except when the declaration of death specifies another date,
in which case, payment of death benefits shall start from the
latter date.
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 LABOR STANDARDS (Atty. Paulino Ungos)
Amount of Death Benefit
For Primary Beneficiaries
Period – Guaranteed for 5 years
Minimum Amount – Not less than P15,000
Amount:
- Equivalent to monthly income benefit for permanent
disability.
- If the employee has been receiving income benefits for
permanent total disability at the time of his death, the primary
beneficiaries shall be paid the monthly income benefit
equivalent to 80%.
Additional Benefits - Plus 10% for each dependent child not
exceeding 5 children beginning with the youngest, and without
substitution.
Secondary Beneficiaries
Period – Guaranteed for 5 years
Minimum Amount – 60 times the monthly income of a primary
beneficiary which in no case be less than P15,000
Amount:
- Equivalent to monthly income benefit for permanent
disability.
- If the employee has been receiving monthly income benefits
for permanent total disability at the time of his death, the
secondary beneficiaries shall be paid the monthly pension,
excluding the dependent’s pension of the remaining balance
of the five year guaranteed period.
Additional Benefits - Plus 10% for each dependent child not
exceeding 5 children beginning with the youngest, and without
substitution.
Funeral Benefit
The funeral benefit of P3,000 shall be paid upon the death of a
covered employee or permanently disabled pensioner to one of
the following:
(a) Surviving spouse; or
(b) Legitimate child who spent for the funeral expenses; or
(c) Any other person who can show incontrovertible proof that
he shouldered the funeral expenses.
Q: Can the employee recover from the Labor Law and
Special Law (SSS)?
A: No. He must choose only one.
Q: Can an employee avail benefit and vacation leave?
A: Yes. The benefit and vacation leave are two separate and
distinct from each other.
Q: What are these benefits?
A: Medical, Disability, Death and Funeral Benefits.
Q: Can the employee avail of the benefit and sue for
damages?
A: No.
Q: What if there are two “legal” wives?
A: The spouse was not granted the benefit because there is a
presumption that he was not living with his legal wife.
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Q: Are there any exceptions to that?
A: The spouse may still avail of the benefits even if there are not
living together: PROVIDED, the surviving spouse was
abandoned, or there was an attempt against the surviving
spouse’s life, sexually abused, or any grounds for legal
separation.
Chapter VIII
PROVISIONS COMMON TO INCOME BENEFITS
ART. 201. Relationship and dependency. - All questions
of relationship and dependency shall be determined as of the
time of death.
Q: What does the word “dependent” mean?
A: Dependent means:
(a) The legitimate, legitimated or legally adopted children who
are:
(i) unmarried;
(ii) not gainfully employed; and
(iii) not over 21 years old; or if over 21 years old, he is
incapable of self-support due to physical or mental defect
which is congenital or acquired during minority;
(b) The legitimate spouse living with the employee at the time of
the employee’s death, until he or she marries; and
(c) The parents of said employee wholly dependent upon him for
regular support.
ART. 202. Delinquent contributions. - (a) An employer
who is delinquent in his contributions shall be liable to the
System for the benefits which may have been paid by the
System to his employees or their dependents, and any benefit
and expenses to which such employer is liable shall
constitute a lien on all his property, real or personal, which
is hereby declared to be preferred to any credit, except taxes.
The payment by the employer of the lump sum equivalent of
such liability shall absolve him from the payment of the
delinquent contribution and penalty thereon with respect to
the employee concerned.
(b) Failure or refusal of the employer to pay or remit
the contribution herein prescribed shall not prejudice the
right of the employee or his dependents to the benefits under
this Title. If the sickness, injury, disability or death occurs
before the System receives any report of the name of his
employee, the employer shall be liable to the System for the
lump sum equivalent to the benefits to which such employee
or his dependents may be entitled.
ART. 203. Second injuries. - If any employee under
permanent partial disability suffers another injury which
results in a compensable disability greater than the previous
injury, the State Insurance Fund shall be liable for the
income benefit of the new disability: Provided, That if the
new disability is related to the previous disability, the
System shall be liable only for the difference in income
benefits.
Comepensability of Second Injuries
Second injury resulting in disability which may be suffered
by an employee under permanent partial disability, is
compensable.
If the second injury is greater than the previous injury, the
State Insurance Fund shall be liable for the income benefit of the
new disability.
If the new injury is related to the previous one, the liability
is only for the difference in income benefits.
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 LABOR STANDARDS (Atty. Paulino Ungos)
ART. 204. Assignment of benefits. - No claim for
compensation under this Title is transferable or liable to tax,
attachment, garnishment, levy or seizure by or under any
legal process whatsoever, either before or after receipt by
the person or persons entitled thereto, except to pay any
debt of the employee to the System.
Restrictions on Compensation Benefits
(a) Non-transferable;
(b) Not subject to tax; and
(c) Not subject to execution, attachment, garnishment, levy, or
seizure, except in payment of a debt to the System.
ART. 205. Earned benefits. - Income benefits shall, with
respect to any period of disability, be payable in accordance
with this Title to an employee who is entitled to receive
wages, salaries or allowances for holidays, vacation or sick
leaves and any other award of benefit under a collective
bargaining or other agreement.
Q: Can accrued employee benefits under a contract or CBA
be enjoyed simultaneously with employee compensation
benefits?
A: Yes, because they are separate and distinct from each other.
Q: What if the employee gains employment while being
compensated for permanent total disability?
A: The compensation shall be suspended.
Q: How about if the employee is suffering from permanent
partial disability?
A: The employee shall continue to receive compensation
benefits even if he is gainfully employed.
ART. 206. Safety devices. - In case the employee’s injury
or death was due to the failure of the employer to comply
with any law or to install and maintain safety devices or to
take other precautions for the prevention of injury, said
employer shall pay the State Insurance Fund a penalty of
twenty-five percent (25%) of the lump sum equivalent of the
income benefit payable by the System to the employee. All
employers, specially those who should have been paying a
rate of contribution higher than required of them under this
Title, are enjoined to undertake and strengthen measures for
the occupational health and safety of their employees.
ART. 207. Prescriptive period. - No claim for
compensation shall be given due course unless said claim is
filed with the System within three (3) years from the time the
cause of action accrued.
Q: When should an employee file his claim from
compensation?
A: Within 3 years from the time the cause of action accrued.
Q: When does the cause of action arise?
A: From the time the employee lost his earning capacity.
Q: Or is it from the time of the occurrence of his injury or
illness?
A: No. From the time the employee lost his earning capacity.
ART. 208. Erroneous payment. - (a) If the System in
good faith pays income benefit to a dependent who is inferior
in right to another dependent or with whom another
dependent is entitled to share, such payments shall discharge
the System from liability, unless and until such other
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dependent notifies the System of his claim prior to the
payments.
(b) In case of doubt as to the respective rights of rival
claimants, the System is hereby empowered to determine as
to whom payments should be made in accordance with such
regulations as the Commission may approve. If the money is
payable to a minor or incompetent, payment shall be made
by the System to such person or persons as it may consider
to be best qualified to take care and dispose of the minor’s or
incompetent’s property for his benefit.
ART. 209. Prohibition. - No agent, attorney or other
person pursuing or in charge of the preparation or filing of
any claim for benefit under this Title shall demand or charge
for his services any fee, and any stipulation to the contrary
shall be null and void. The retention or deduction of any
amount from any benefit granted under this Title for the
payment of fees for such services is prohibited. Violation of
any provision of this Article shall be punished by a fine of
not less than five hundred pesos nor more than five
thousand pesos, or imprisonment for not less than six
months nor more than one year, or both, at the discretion of
the court.
Q: What are the prohibited acts contemplated under this
Article?
A: Demanding or charging service fees; or deducting any
amount from the compensation benefit in payment of services.
ART. 210. Exemption from levy, tax, etc. - All laws to the
contrary notwithstanding, the State Insurance Fund and all
its assets shall be exempt from any tax, fee, charge, levy, or
customs or import duty and no law hereafter enacted shall
apply to the State Insurance Fund unless it is provided
therein that the same is applicable by expressly stating its
name.
Chapter IX
RECORDS, REPORTS AND PENAL PROVISIONS
ART. 211. Record of death or disability. - (a) All
employers shall keep a logbook to record chronologically the
sickness, injury or death of their employees, setting forth
therein their names, dates and places of the contingency,
nature of the contingency and absences. Entries in the
logbook shall be made within five days from notice or
knowledge of the occurrence of the contingency. Within five
days after entry in the logbook, the employer shall report to
the System only those contingencies he deems to be work-
connected.
(b) All entries in the employer’s logbook shall be made
by the employer or any of his authorized official after
verification of the contingencies or the employees’ absences
for a period of a day or more. Upon request by the System,
the employer shall furnish the necessary certificate
regarding information about any contingency appearing in
the logbook, citing the entry number, page number and date.
Such logbook shall be made available for inspection to the
duly authorized representative of the System.
(c) Should any employer fail to record in the logbook an
actual sickness, injury or death of any of his employees
within the period prescribed herein, give false information
or withhold material information already in his possession,
he shall be held liable for fifty percent of the lump sum
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equivalent of the income benefit to which the employee may Title III
be found to be entitled, the payment of which shall accrue to MEDICARE
the State Insurance Fund.
ART. 215. Medical care. - The Philippine Medical Care
(d) In case of payment of benefits for any claim which is Plan shall be implemented as provided under Republic Act
later determined to be fraudulent and the employer is found Numbered Sixty-One Hundred Eleven, as amended.
to be a party to the fraud, such employer shall reimburse the
System the full amount of the compensation paid.
Title IV
ART. 212. Notice of sickness, injury or death. - Notice of ADULT EDUCATION
sickness, injury or death shall be given to the employer by
the employee or by his dependents or anybody on his behalf ART. 216. Adult education. - Every employer shall
within five days from the occurrence of the contingency. No render assistance in the establishment and operation of adult
notice to the employer shall be required if the contingency is education programs for their workers and employees as
known to the employer or his agents or representatives. prescribed by regulations jointly approved by the
Department of Labor and Employment and the Department
ART. 213. Penal provisions. - (a) The penal provisions of of Education, Culture and Sports.
Republic Act Numbered Eleven Hundred Sixty-One, as
amended, and Commonwealth Act Numbered One Hundred
Eighty-Six, as amended, with regard to the funds as are
thereunder being paid to, collected or disbursed by the
System, shall be applicable to the collection, administration
and disbursement of the Funds under this Title. The penal
provisions on coverage shall also be applicable.
(b) Any person who, for the purpose of securing
entitlement to any benefit or payment under this Title, or the
issuance of any certificate or document for any purpose
connected with this Title, whether for him or for some other
person, commits fraud, collusion, falsification,
misrepresentation of facts or any other kind of anomaly,
shall be punished with a fine of not less than five hundred
pesos nor more than five thousand pesos and an
imprisonment for not less than six months nor more than
one year, at the discretion of the court.
(c) If the act penalized by this Article is committed by
any person who has been or is employed by the Commission
or System, or a recidivist, the imprisonment shall not be less
than one year; if committed by a lawyer, physician or other
professional, he shall, in addition to the penalty prescribed
herein, be disqualified from the practice of his profession;
and if committed by any official, employee or personnel of
the Commission, System or any government agency, he shall,
in addition to the penalty prescribed herein, be dismissed
with prejudice to re-employment in the government service.
ART. 214. Applicability. - This Title shall apply only to
injury, sickness, disability or death occurring on or after
January 1, 1975.
ART. 214-A. Repeal. - All existing laws, Presidential
Decrees and Letters of Instructions which are inconsistent
with or contrary to this Decree, are hereby repealed:
Provided, That in the case of the GSIS, conditions for
entitlement to benefits shall be governed by the Labor Code,
as amended: Provided, however, That the formulas for
computation of benefits, as well as the contribution base,
shall be those provided under Commonwealth Act
Numbered One Hundred Eighty-Six, as amended by
Presidential Decree No. 1146, plus twenty percent thereof.

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