SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW

Any form of reproduction of this copy is strictly prohibited!!!
PRELIMINARY TITLE
CHAPTER I
GENERAL PROVISIONS
ART 1. NAME OF DECREE
LABOR LEGISLATION - Consists of
statutes, regulations and jurisprudence
governing the relations between capital and
labor, by providing for certain standards of terms
and conditions of employment or providing a
legal framework within which these terms and
conditions and the employment relationship may
be negotiated, adjusted and administered. It is
divided into labor standards and labor relations.
LABOR STANDARDS - Are the minimum
reuirements prescribed by e!isting laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary and welfare benefits,
including occupational safety, and health
standards.
LABOR RELATIONS LAW - defines the
status, rights, and duties and the institutional
mechanisms that govern the individual and
collective interactions of employers, employees
or their representatives.
- "he law which
seeks to stabili#e the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.
ART. 2. DATE OF EFFECTIVITY
"he $abor Code took effect on %ovember &,
&'() *si! months after its promulgation on +ay
&,&'(),

SEVEN (7) BASIC RIGHTS OF
WORKERS AS GARANTEED BY
THE CONSTITTION (OCESHLP)!
&. -ight to .rgani#e
/. -ight to Conduct Collective 0argaining
or %egotiation with +anagement
1. -ight to 2ngage in 3eaceful Concerted
Activities including strike in accordance
with law
). -ight to 2njoy 4ecurity of "enure
5.-ight to 6ork 7nder 8umane Conditions
9.-ight to -eceive a $iving 6age
(.-ight to 3articipate in 3olicy :
;ecision-+aking 3rocesses affecting
their rights and benefits as may be
provided by law
RELATED LAWS!
&. CI<I$ C.;2= see Arts. &(>>, &(>&and &(>1
/. -2<I42; 32%A$ C.;2= Art. /?'
3. ."82-4= 444 $aw, @4I4 $aw, Agrarian
-eform $aw, the &1
th
month pay law, the
+agna Carta for 3ublic 8ealth 6orkers, etc.
RATIONALE !
- "he raison dA etre of labor laws is the POLICE
POWER of the 4tate
ART ". DECLARATION OF BASIC
POLICY
"he 4tate shall afford protection to labor,
promote full employment, ensure eual work
opportunities regardless of se!, age or creed,
and regulate the relations between workers and
employers. "he 4tate shall assure the right of
workers to self-organi#ation, collective
bargaining, security of tenure, and just and
humane conditions of work.
EMPLOYER - one who employs the
services of othersB one for whom employees
work and who pays their wages or salaries.
EMPLOYEE - one who works for an
employerB a person working for salary or wages
ART #. CONSTRCTION IN FAVOR
OF LABOR
CONSTRCTION IN FAVOR OF
LABOR CLASE -this is with a view to apply
the Code to the greater number of employees to
enable them to avail of the benefits under the
law *Abella vs. %$-C,. "he working manAs
welfare should be the primordial consideration.
- "his rule is applicable i$ %&'(' i) * +,-.% as
to the meaning of the legal or contractual
provision. If the provision is clear and
unambiguous, it must be applied in
accordance with its e!press terms.
- "hese laws )&,-/+ .' in%'(0('%'+ 1i%& *
2i'1 %, %&' $*3% %&*% %&'4 *(' ('5'+i*/ in
n*%-(', they are enacted to better the lot
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Aneluz Torres, !heila !uli", Liezel DeLeon, Ana Marie Ga#os, Liza !a"o , Mac$Mac Romero, %ilmar Calle&o, !all# !il'a,
Jo# Me&ia, (o)ard Arzadon
SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!
and promote the welfare of the members of the
laboring class.
- R')'(2*%i,n ,$ '))'n%i*/ *%%(i.-%') ,$
),2'('i6n 0,1'( is read into contracts
as a postulate of the legal order.
- Courts *+,0% * /i.'(*/
*00(,*3& %&*% $*2,() %&' '7'(3i)' ,$
/*.,( (i6&%). "he mandate under Art. )
is simply to resolve doubt, i* an#, in favor
of labor. If there is no doubt in
implementing and interpreting the law,
labor will enjoy no built-in advantage
and the law will have to be applied as it
is.
MANAGEMENT RIGHTS! *CPST)
C -ight to conduct business
P -ight to prescribe rules
S -ight to select employees
T -ight to transfer or discharge employees

MANAGEMENT PREROGATIVE
2!cept as limited by special laws, an
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including=
8I-I%@, 6.-C A44I@%+2%"4,
6.-CI%@ +2"8.;4, "I+2 3$AC2 A%;
+A%%2- .D 6.-C, "..$4 ". 02 742;,
3-.C24424 ". 02 D.$$.62;,
4732-<I4I.% .D 6.-C2-4, 6.-CI%@
-2@7$A"I.%4, "-A%4D2- .D 2+3$.E224,
6.-C 4732-<I4I.%, $AE-.DD .D
6.-C2-4, A%; ;I4CI3$I%2, ;I4+I44A$
A%; -2CA$$ .D 6.-C2-4. *HW8T2PLSD)
"hus, so long as management prerogatives
are e!ercised in good faith for
the advancement of the
employerAs interest and not for
the purpose of defeating or
circumventing the rights of
employees under special law or
under valid agreements, it shall
be upheld.
ART 8. RLES AND REGLATIONS
- "he rules and regulations issued by the ;.$2
shall become '$$'3%i2' 18 +*4) *$%'(
*nn,-n3'5'n% ,$ %&'i( *+,0%i,n in
n'1)0*0'() ,$ 6'n'(*/ 3i(3-/*%i,n.
ART 9. APPLICABILITY
AGRICLTRAL OR FARM WORKER -
one employed in an agricultural or farm
enterprise and assigned to perform tasks which
are directly related to the agricultural activities of
the employer, such as cultivation and tillage of
the soil, dairying, growing and harvesting of any
agricultural and horticultural commodities, the
raising of livestock or poultry, and any activities
performed by a farmer as an incident to or in
conjunction with such farming operations.
- "here may be in ,n' '50/,4'( .,%&
*6(i3-/%-(*/ *) 1'// *) in+-)%(i*/ 1,(:'().
- PRPOSE ,$ %&' 0(,2i)i,n! intended to
encourage workers to seek employment in
agricultural enterprises instead of migrating
to already overcrowded urban areas to find
work in industrial establishments
- "he $C applies to all workers, whether
agricultural or non-agricultural, including
employees in a 6,2'(n5'n% 3,(0,(*%i,n
in3,(0,(*%'+ -n+'( %&' C,(0,(*%i,n C,+'.
FARM
EMPLOYER-
FARM
WORKER
RELATIONSHI
P
TENANCY
RELATIONSHIP
- "he lease is one
of labor with the
agricultural laborer
as the lessor of his
services and the
farm employer as
the lessee
- It is the landowner
who is the lessor
and the tenant the
lessee of
agricultural land
- "he agricultural
worker works for
the farm employer
and for his labor he
receives a salary or
wage, regardless of
whether the
employer makes a
profit.
- "he tenant derives
his income from the
agricultural produce
or harvest
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Aneluz Torres, !heila !uli", Liezel DeLeon, Ana Marie Ga#os, Liza !a"o , Mac$Mac Romero, %ilmar Calle&o, !all# !il'a,
Jo# Me&ia, (o)ard Arzadon
Page 2 of 70
CHAPTER II
EMANCIPATION OF TENANTS
*%ote= not included as per 4C +emo,
ART 7-11
- S&*(' %'n*n34 &*) .''n *.,/i)&'+
placing in its stead leasehold system.
- 7nder Art. ?, the land covered by operation
land transfer 5-)% .' 0(i2*%' *6(i3-/%-(*/
/*n+; %'n*n%'+; 0(i5*(i/4 +'2,%'+ %, (i3'
*n+<,( 3,(n; *n+ 5,(' %&*n )'2'n
&'3%*(') in *('.
P(')'n% ('%'n%i,n /i5i%)!
- 5 hectares per landowner and 1 hectares
per child provided the child is=
&. Is at least &5 years of ageB and
/. Actually tilling the land or directly managing
the farm
E=CEPTIONS!
- those covered by homestead patents
- those covered by 3; /(
EMANCIPATION PATENT - is the title issued
to the tenant upon compliance with all the
reuirements of the government. It represents
the full emancipation pf the tenant from the
bondage of the soil.
PROHIBITION AGAINST ALIENATION
IS INTENDED TO!
&. 3reserve the landholding in the hands of the
owner-tiller and his heirsB
/. minimi#e land speculationB and
1. prevent a return to the regime of land
ownership by a few.
BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
ART 1". DEFINITIONS
WORKER -any member of the labor force,
whether employed or unemployed
RECRITMENT AND PLACEMENT - any act
of canvassing, enlisting, contracting,
transporting, utili#ing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for profit
or notB 3-.<I;2;, that any person or entity
which, in any manner, offers or promises for a
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
*C2C-"7C3, *-C3A,
-"he number of persons dealt with is not
an essential ingredient of the act of recruitment
and placement of workers. "he proviso merely
creates the presumption.
ART 19. PRIVATE RECRITMENT
ENTITIES ATHORI>ED TO RECRIT
&. 3ublic employment offices
/. 3rivate recruitment entitiesB private
employment agencies
1. 4hipping or manning agents or
representatives
). "he 3.2A
5. Construction contractors if authori#ed by the
;.$2 and the Construction Industry
Authority
9. +embers of the diplomatic corps *but hirings
must also go thru 3.2A,
(. .ther persons or entities as may be
authori#ed by the ;.$2 secretary
DOCMENTATION OF WORKERS!
&. Contract 3rocessing F workers hired thru the
3.2A shall be issued the individual
employment contract and such other
documents as may be necessary for travel
/. 3assport ;ocumentation
1. <isa Arrangement
ART 17. (POEA)
- 3.2A has taken over the functions of the
.2;0
AD?DICATORY FNCTIONS OF THE
POEA !
a. All cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entitiesB and
b. ;isciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Dilipino +igrant 6orkers
?RISDICTION TRANSFERRED TO
THE LABOR ARBITERS OF THE NLRC !
a. claims arising out of an employer-employee
relationship or by virtue of any law or
contract involving Dilipino workers for
overseas deployment including claims for
actual, moral, e!emplary and other forms of
damages.
V'n-' @ +oney claims or claims for damages
should be filed before the -egional Arbitration
branch of the %$-C where the complainant
resides or where the principal office of the
respondentGemployer is situated, at the option of
the complainant.
C,50(,5i)' A6(''5'n% - Consistent with
the policy encouraging amicable settlement of
labor disputes, 4ec &>, -A ?>)/ allows
resolution by compromise of cases filed with the
%$-C.
PREMATRE TERMINATION OF
CONTRACT - 6here the workerAs employment
contract is terminated long before its agreed
termination date, and the termination is not
shown to be based on lawful or valid grounds,
the employer will be ordered to pay the workers
their salaries corresponding to the une!pired
portion of their employment contract. (Ti'((*
In%A/ C,n)%(-3%i,n C,(0. 2). NLRC).
8.62<2-, under -.A. ?>)/, if the illegal
dismissal %,,: 0/*3' ,n ,( *$%'( ?-/4 18; 1BB8,
the illegally dismissed ,2'()'*) worker shall be
'n%i%/'+ %, %&' $-// ('i5.-()'5'n% ,$ &i)
0/*3'5'n% $'' 1i%& in%'(')% *% %&' (*%' ,$ 12C
0'( *nn-5 0/-) )*/*(4 $,( %&' -n'70i('+
0,(%i,n ,$ &i) '50/,45'n% 3,n%(*3% ,( $,( "
5,). $,( '2'(4 4'*( ,$ %&' -n'70i('+ %'(5
1&i3&'2'( i) LESS.
- Claims for +'*%& *n+ .-(i*/ .'n'$i%)
in2,/2in6 )'*5'n OCW) 1&i3& %&' POEA
has jurisdiction *(' n,% %&' )*5' as the
3/*i5) *6*in)% %&' S%*%' In)-(*n3' F-n+
,$ %&' LC.
- "he basis for the award of backwages is the
partiesH employment contract, stipulating the
wages and benefits.
- T&' $*3% %&*% %&' '50/,4'' &*) )i6n'+ *
)*%i)$*3%i,n ('3'i0% +,') n,% (')-/% in
1*i2'(D %&' /*1 +,') n,% 3,n)i+'( *)
2*/i+ *n4 *6(''5'n% %, ('3'i2' /'))
3,50'n)*%i,n %&*n 1&*% %&' 1,(:'( i)
'n%i%/'+ %, ('3,2'(.
(MR Y*(+ C('1 ni,n 2). PNR)
ART 1E. BAN ON DIRECT-HIRING
Di('3% &i(in6 ,$ Fi/i0in, 1,(:'() .4 *
$,('i6n '50/,4'( i) n,% *//,1'+.
E=CEPTIONS !
the members of the diplomatic corpsB
international organi#ationsB
such other employers as may be allowed by the
;epartment of $abor and employment
1. n*5' &i('') F individual workers who are
able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation or any agency
RATIONALE OF THE PROHIBITION
- Fi/i0in, 1,(:'() &i('+ +i('3%/4 .4 *
$,('i6n '50/,4'(; 1i%&,-% 6,2'(n5'n%
in%'(2'n%i,n 5*4 n,% .' *))-('+ ,$ %&'
.')% 0,))i./' %'(5) *n+ 3,n+i%i,n) ,$
1,(:. "he foreign employer must also be
protected and may chance upon a Dilipino
worker who do not possess sufficient
knowledge for which he is employed.
MINIMM EMPLOYMENT
CONDITIONS OF OVERSEAS
EMPLOYMENT!
&. @uaranteed wages for regular
working hours and overtime pay for
services rendered beyond regular
working hours in accordance with
the standards established by the
Administration
/. Dree "ransportation from point of hire to site
of employment and returnB
1. Dree emergency medical and dental
treatment and facilitiesB
). Iust causes for termination of the contract or
of the services of the workersB
5. 6orkmenAs compensation benefits and war
ha#ard protectionB
9. -epatriation of workerAs remains and
properties in case of death to the point of
hire, or if this is not possible the possible
disposition thereof
(. Assistance on remittance of workerAs
salaries, allowances or allotments to his
beneficiariesB and
?. Dree and adeuate board and lodging
facilities or compensatory food allowance at
prevailing cost of living standards at the
jobsite.
ART 22. MANDATORY REMITTANCE
OF FOREIGN E=CHANGE EARNINGS
MANDATORY REMITTANCE
REFIREMENTS!
&. 4eamen or mariners= ?>J of the basic
salaryB
/. 6orkers for Dilipino Contractors and
Construction Companies= (>J of the basic
salaryB
1. ;octors, engineers, teachers, nurses, and
other professionals whose employment
contract provide for lodging facilities= same
as K/
). All other professionals without board and
lodging= 5>J of the basic salaryB
5. ;omestic and other service of workersB 5>J
of the basic salary.
ART 28. PRIVATE SECTOR
PARTICIPATION IN THE RECRITMENT
AND PLACEMENT OF WORKERS
FALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS
EMPLOYMENT PROGRAM!
&. Dilipino citi#ens, partnerships or corporations
at least (5J of the authori#ed and voting
capital stock of which is owned and
controlled by Dilipino citi#ensB
/. +inimum capitali#ation of &+ in case of
single proprietorship or partnership and a
minimum of &+ paid-up capital for
corporationsB
1. "hose not otherwise disualified by law or
these guidelines to engage in the
recruitment and placement of workers for
overseas employment
DISFALIFICATIONS!
&. "ravel agencies and sales agencies of
airline companiesB
/. .fficers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agencyB
1. Corporations and partnerships, when any of
its officers, members of the board or
partners, is also an officer, member of the
board or partner of a corporation engaged in
the business of a travel agency.
). 3ersons, partnerships, or corporations which
have derogatory recordsB
5. 3ersons employed in the ;epartment of
$abor or in other government agencies
directly involved in overseas employment
program and their relatives within the )
th
degree of consanguinity or affinityB or
9. "hose whose license has been previously
canceled or revoked.
CHAPTER II
REGLATIONS OF RECRITMENT
AND PLACEMENT ACTIVITIES
ART 2B. NON-TRANSFERABILITY OF
LICENSE OR ATHORITY
- N, /i3'n)' ,( *-%&,(i%4 )&*// .' -)'+
+i('3%/4 ,( in+i('3%/4 .4 *n4 0'(),n ,%&'(
%&*n %&' ,n' in 1&,)' $*2,( i% 1*) i))-'+
or at any place other than that stated in the
license or authority, nor may such license or
authority be transferred, conveyed or
assigned to any other person or entity.
- $icensees or holders of authority or their
duly authori#ed representatives may as a
rule, undertake recruitment and placement
activities ,n/4 *% %&'i( *-%&,(iG'+ ,$$i3i*/
*++('))').
- C&*n6' ,$ ,1n'()&i0 ,( ('/*%i,n)&i0 ,$
)in6/' 0(,0(i'%,()&i0 /i3'n)'+ to engage
in overseas employment shall cause the
*-%,5*%i3 ('2,3*%i,n ,$ %&' /i3'n)'.
- All ,2'()'*) /*n+.*)'+ 1,(:'() shall be
provided both /i$' *n+ 0'(),n*/ *33i+'n%
in)-(*n3'.
GRONDS FOR DISCIPLINARY
ACTION *7nder the MWA ,$ 1BB8, B
&. Commission of a felony punishable by the
laws of the 3hilippines or by the host
countryB
/. ;rug addiction or possession or trafficking of
prohibited drugsB
1. ;esertion or abandonmentB
). ;runkenness, especially where the laws of
the of the host country prohibit the sameB
5. @ambling, especially where the laws of the
host country prohibit the sameB
9. Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actionsB
(. Creating trouble at the worksite or in the
vesselB
?. 2mbe##lement of company funds or of
money an properties of a fellow worker
entrusted for delivery to kins or relatives in
the 3hilippinesB
'. "heft or robberyB
&>. 3rostitutionB
&&. <andalism or destroying company propertyB
&/. @unrunning or possession of deadly
weaponsB
&1. 7njust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agencyB and
&). <iolation of the laws and sacred practices of
the host country and unjustified breach of
government approved employment contract
by a worker.
ART "1. BONDS

- C*)& .,n+ $i/'+ .4 *00/i3*n%) $,( /i3'n)'
,( *-%&,(i%4 i) n,% )-.H'3% %, 6*(ni)&5'n%
by judgment creditor of agency
ART "2. FEES TO BE PAID BY
WORKERS
- 4uspension or cancellation of licenses 5*4
in3/-+' *1*(+ ,$ +*5*6') to repair the
injury caused to its victims.
ART "#. PROHIBITED PRACTICES
- A )-00/'5'n%*(4 3,n%(*3% .'n'$i3i*/ %,
1,(:'( n,% 2i,/*%i2' ,$ 0(,%'3%i,n afforded
by the 4tate to workers.
ART "8. SSPENSION AND<OR
CANCELLATION OF LICENSE OR
ATHORITY
NON-LICENSEE OR NON-HOLDER OF
ATHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and
placement by the 4ecretary of $abor, or whose
license or authority has been suspended,
revoked, or cancelled by the 3.2A and the
4ecretary.
CHAPTER III
MISCELLANEOS PROVISIONS
ART "E. ILLEGAL RECRITMENT (*)
0'( RA EI#2 ,%&'(1i)' :n,1n *) %&'
Mi6(*n% W,(:'()A A3% ,$ 1BB8)
ILLEGAL RECRITMENT - Any act of
canvassing, enlisting, contracting,
transporting, utili#ing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or
not when undertaken by a non-licensee
or non-holder of authority.
3-.<I;2; that any such non-licensee
or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
to two or more persons shall be deemed so
engaged. It shall likewise include the
commission of prohibited acts whether
committed by a non-licensee or non-holder of
authority or a licensee or holder of authority.

PROHIBITED PRACTICES!
(CFGIIEOFSBWF)
C to charge or accept amount beyond
amount allowed by law
F to furnish or publish false notice or
information in relation to -ecruitment
and 3lacement
G to give any false notice and information
or commit any act of misrepresentation
to secure license or authority
I Induce or attempt to induce workers to
uit employment to offer him another
e!cept if the transfer is to liberate a
worker from oppressive terms and
conditions of employment *%."2= it is
not necessary that worker was actually
induced or did uit employment,
I to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
E to engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the 3hil.
O .bstruct or attempt to obstruct
inspection by 4ecretary
F Dail to file reports
S 4ubstitute or alter employment contracts
B 0ecome officer or 0oard member of
corporation engaged in travel agency
W 6ithhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authori#ed by the Code.
F Dailure to actually deploy without valid
reason as determined by the ;.$2
F Dailure to reimburse e!penses incurred
by the worker in connection with his
documentation and processing for
purposes of deployment, in cases where
the deployment does not actually take
place without the workerAs fault
THE FALIFYING CIRCMSTANCES
THAT WOLD MAKE ILLEGAL
RECRITMENT AS A CRIME
INVOLVING ECONOMIC SABOTAGE
ARE !
6hen committed by a SYNDICATE i+e+, if it is
carried out by a group of three *1, or more
persons conspiring and confederating with
one anotherB or
(a) 6hen committed in a LARGE SCALE
i+e+, if it is committed against three *1, or
more persons
VENE OF ACTIONS ON ILLEGAL
RECRITMENT!
&. -"C of the province or city where the
offense was committedB or
/. where the offended party resides at the time
of the commission of the offense
at the option of the complainant
- "hese circumstances only ualify. "hey do
not define the offense themselves
- R'3(-i%5'n% *n+ 0/*3'5'n% *3%i2i%i') of
agents or representatives appointed by a
licensee, whose appointments were n,%
0('2i,-)/4 *-%&,(iG'+ .4 %&' POEA shall
likewise 3,n)%i%-%' i//'6*/ ('3(-i%5'n%.
ART. "E ( 3 ) +'3/*('+ -n3,n)%i%-%i,n*/ since
only a judge may issue search
warrantG warrant of arrest. "he
4ec. .f $abor may only
recommend not issue. 8owever,
Closure of establishments of illegal
recruiters may still be ordered by
4ecretary of $abor, same being
essentially administrative and
regulatory in nature.(S*/*G*( 2).
A3&*3,), *n+ M*(J-'G)
PRESCRIPTIVE PERIOD
Illegal -ecruitment cases under -A ?>)/ shall
prescribe in $i2' (8) 4'*() Pro'ided, ho)e'er,
"hat illegal recruitment cases involving
'3,n,5i3 )*.,%*6' shall prescribe in %1'n%4
(2I) 4'*().
TITLE II
EMPLOYMENT OF NON-RESIDENT
ALIENS
ART #I. EMPLOYMENT PERMIT OF
NON-RESIDENT ALIENS
-Doreigners or domestic and foreign employers
desiring to employ aliens must secure
employment permit from the ;.$2 upon
determination of the non-availability of a person
in the 3hilippines who is competent, able and
willing at the time of the application to perform
the services for which the alien is desired.
- Doreigners may n,% .' '50/,4'+ in certain
n*%i,n*/iG'+ .-)in')).
- a n,n-(')i+'n% */i'n 1,(:'( and the
'50/,4'( shall bind themselves to %(*in *% /'*)%
2 Fi/i0in, -n+'()%-+i').
PROHIBITION AGAINST
EMPLOYMENT OF ALIENS
S'3%i,n 2-A ,$ %&' An%i-D-554 L*1 prohibits
the employment of aliens in establishment or
entities which have under their name or control a
right, franchise, privilege, property or business
the e!ercise or enjoyment of which property or
business the e!ercise or enjoyment of which is
e!pressly reserved by the Constitution or the
laws to citi#ens of the 3hilippines or to
corporations or associations at least 9>J of the
capital of which is owned by such citi#ens.
E=CEPTIONS TO THE
PROHIBITION!
a. where the 4ecretary of Iustice specifically
authori#es the employment of technical
personnelB or
b. where the aliens are elected members of
the board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.
BOOK TWO
HMAN RESORCES
DEVELOPMENT
TITLE I
NATIONAL MANPOWER
DEVELOPMENT PROGRAM
CHAPTER I
NATIONAL POLICIES AND
ADMINISTRATIVE MACHINERY FOR
THEIR IMPLELENTATION
ART #8. DEFINITIONS
MANPOWER - that portion of the nationAs
population which has actual or potential
capability to contribute directly to the production
of goods and services.
ENTREPRENERSHIP - training for self-
employment or assisting individual or small
industries within the purview of this the $C.
TITLE II
TRAINING AND EMPLOYMENT OF
SPECIAL WORKERS
CHAPTER I
APPRENTICES
T40') ,$ S0'3i*/ W,(:'()!
&. Apprentice
/. $earners
1. 8andicapped
ART 8E. DEFINITION OF TERMS
APPRENTICESHIP - practical training on the
job supplemented by related theoretical
instruction
APPRENTICE - worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recogni#ed under this chapter
APPRENTICEABLE OCCPATION - any
trade, form of employment or occupation which
reuires more than 1 months of practical training
on the job supplemented by related theoretical
instruction
APPRENTICESHIP AGREEMENT - an
employment contract wherein the employer
binds himself to train the apprentice and the
apprentice in turn accepts the terms of training
ON-THE-?OB TRAINING F the practical
work e!perience through actual participation in
productive activities given to or acuired by an
apprentice
HIGHLY TECHNICAL INDSTRIES F trade,
business, enterprise, industry or other activity,
which is engaged in the application of advanced
technology
ART 8B. FALIFICATIONS OF
APPRENTICES
F-*/i$i3*%i,n) ,$ *n A00('n%i3'
&. at least &5 years of ageB provided those
who are at least &5 years of age but less
than eighteen may be eligible for
apprenticeship only in non-ha#ardous
occupations and the apprenticeship
agreement shall be signed in his behalf by
the parent or guardian or authori#ed
representative of ;.$2.
/. vocational aptitudeG capacity for appropriate
test
1. ability to comprehend and follow oral and
written instructions
ART 9I. EMPLOYMENT OF
APPRENTICES
- On/4 '50/,4'() in &i6&/4 %'3&ni3*/
in+-)%(i') may hire apprentices and ,n/4 in
*00('n%i3'*./' ,33-0*%i,n) as
determined by the 4ec. .f $abor
R'J-i)i%') $,( * VALID
APPRENTICESHIP
&. L7A$IDICA"I.%4 .D "82 A33-2%"IC2
/. A33-2%"IC248I3 A@-22+2%" ;7$E
2M2C7"2; A%; 4I@%2; 3-.<I;I%@ D.-
C.+32%4A"I.% %." $244 "8A% (5J .D
"82 A33$ICA0$2 +I%I+7+ 6A@2, 2MC23"
.%-"82-I.0 "-AI%I%@ *.I",
1.A33-2%"IC248I3 3-.@-A+ ;7$E
A33-.<2; 0E ;.$2
). 32-I.; .D A33-2%"IC248I3 48A$$ %."
2MC22; 9 +.%"84.
ART 71. DEDCTIBILITY OF TRAINING
COSTS
R'J-i)i%') $,( %*7 +'+-3%i,n) in 3*)'
'50/,4'() &*2' *00('n%i3')&i0
0(,6(*5)!
&. 3rogram duly recogni#ed by the ;epartment
of $abor
/. ;eduction shall not e!ceed &>J of direct
labor wage
1. 3ay his apprentices the minimum wage
ART 72. APPRENTICES WITHOT
COMPENSATION
A00('n%i3') 1&, 5*4 .' &i('+ 1i%&,-%
3,50'n)*%i,n!
&.those whose training on the job is
reuired by the schoolB
/."raining 3rogram CurriculumB
1.-euisite for @raduationB or
).A reuisite for 0oard 2!amination
CHAPTER II
LEARNERS
ART 7". LEARNERS DEFINED
LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be
learned thru practical training on the job in a
relatively short period of time which shall not
e!ceed 1 mos.
APPRENTICESHIP LEARNERSHIP
&. 3ractical training on
the job
supplemented by
related theoretical
instruction.
&. 8iring of persons
as trainees in
semi-skilled and
other industrial
occupations which
are non-
apprenticeable and
which may be
learned thru
practical training
on the job in a
relatively short
period of time.
/. %ot less than 1
months practical
training on the job
but not more than 9
months
/. 3ractical training
on the job not to
e!ceed 1 mos.
1. %o Commitment to
hire
1. 6ith Commitment
to employ the
learner as regular
employee if he
desires upon
completion of
learnership
). In case of
pretermination of
the apprenticeship
agreement, the
worker is not
considered as a
regular employee
). $earner is
considered as a
regular employee
in case of
pretermination of
contract after /
mos. of training
and the dismissal
is without fault of
learner
5. 8ighly technical
industries and only
in industrial
occupation
5. 4emi-skilled G
industrial
occupations
L'*(n'() in 0i'3'1,(:< in3'n%i2' - rate jobs
are to be paid in full for the work done.
CHAPTER III
HANDICAPPED WORKERS
ART 7E. DEFINITION
HANDICAPPED WORKERS - Are those
whose '*(nin6 3*0*3i%4 i) i50*i('+ by age or
physical or mental deficiency or injury.
- 4ubject to the provisions of the Code,
&*n+i3*00'+ 1,(:'() 5*4 .' &i('+ *)
('6-/*( 1,(:'(); *00('n%i3') ,( /'*(n'()
if their &*n+i3*0 i) n,% )-3& *) %,
'$$'3%i2'/4 i50'+' %&' 0'($,(5*n3' ,$ H,.
,0'(*%i,n) in the particular occupations for
which they were hired.
- ualified disabled employee shall be
)-.H'3% %, %&' )*5' %'(5) *n+ 3,n+i%i,n)
,$ '50/,45'n% and the same
compensation, privileges, benefits, fringe
benefits, incentives or allowances as a
ualified able-bodied person. 2ven a
handicapped worker 3*n *3J-i(' %&'
)%*%-) ,$ * ('6-/*( '50/,4''.
D-(*%i,n ,$ '50/,45'n% - no minimum, no
ma!imum. ;ependent on agreement but is
necessary that there is a specific duration
BOOK THREE
CONDITIONS OF EMPLOYMENT
TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HORS OF WORK
ART E2. COVERAGE
ELEMENTS OF EMPLOYER-
EMPLOYEE RELATIONSHIP!
&. selection and engagement of the
employee
/. the payment of wages
1. the power of dismissal
). the employerAs power to control the
employee *with respect to the means
and methods by which the work is to
be accomplished,
- "he last element as mentioned above is
what is known as the CONTROL TEST -
whether the employer controls or has
reserved the right to control the employee
not only as to the result of the work to be
done but also as to the means and methods
by which the same is to be accomplished.
"his last element is the most important inde!
of the e!istence of the relationship.
EMPLOYEE - A natural person who is hired,
directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the NhirerH who, directly or
through an agent, supervises or controls
the work performance and pays the salary
or wage of the hire.
E50/,4'') E7'50% $(,5 %&' B'n'$i%)
,$ E-E R'/*%i,n)&i0
&. @overnment 2mployees
/. +anagerial 2mployees
1. Dield 3ersonnel
). Damily +embers dependent on the
employer for support
5. ;omestic 8elpers
9. 3ersons on the 3ersonal 4ervice of another
(. 6orkers 3aid by -esult
GOVERNMENT EMPLOYEES - -efers only
to employees of government agencies,
instrumentalities or political subdivisions
and of government corporations that are
no" incorporated under the Corporation
Code, meaning those which have original
charters.
MANAGERIAL EMPLOYEES - -efer 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 members
of the managerial staff
N,%'! ;efinition applies only to the ?-
hour $abor law
FIELD PERSONNEL - -efer to non-
agricultural employees who regularly
perform their duties away from the principal
place of business or branch office of the
employer and whose actual hours of work
in the field cannot be determined with
reasonable certainty.
WORKERS PAID BY RESLTS - +ethod of
computing compensation based on the
work completed and not on the time spent
in working.
PIECE-RATE METHOD - 6here pay is
dependent on unit of product finished, preferred
where the work process is repetitive and the out
put is standardi#ed and easily countable.
DOMESTIC HELPERS< PERSONS
RENDERING PERSONAL SERVICES - 3erform
services in the employers home which are
usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
to the personal comfort, convenience or safety of
the employer, as well as the members of the
employerAs household.
- "he e!istence of employment relationship is
+'%'(5in'+ .4 /*1 and not by contract.
- 6hether or not an employer-employee
relationship e!ists between the parties is a
J-')%i,n ,$ $*3%. T&' $in+in6) ,$ %&'
NLRC *(' *33,(+'+ n,% ,n/4 (')0'3% .-%
$in*/i%4 i$ )-00,(%'+ .4 )-.)%*n%i*/
'2i+'n3'.
MANAGEMENT PREROGATIVE - e!cept as
otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools
to be used, processes to be followed,
supervision of workers, working regulations,
transfer of employees, work supervision, lay-off
of workers and discipline, dismissal and recall of
workers.
- +anagement prerogative ('3,6niG') %&'
(i6&% ,$ %&' '50/,4'( %, *+2*n3' i%)
in%'(')% to prescribe standards of work and
impose reasonable uotas or work
assignments, and failure on the part of the
employees to meet the reuirement, impose
in good faith, constitutes a just cause for his
dismissal.
- N'1 ,1n'(<5*n*6'5'n% 6(,-0 has n,
,./i6*%i,n %, ('-'50/,4 1,(:'() 1&,
$(''/4 *n+ 2,/-n%*(i/4 *33'0%'+ %&'i(
)'0*(*%i,n 0*4 *n+ ,%&'( .'n'$i%). A
change of ownership in a business concern
is not proscribed by law.
ART E". NORMAL HORS OF WORK
- 4hall n,% '73''+ E &,-() in a regular working
day
PRPOSE
- to safeguard the health and welfare of the
laborer and in a way to minimi#e
unemployment by utili#ing different shifts
REGLAR WORKING DAYS! "he regular
working days of covered employees shall not be
more than five days in a workweek. "he
workweek may begin at any hour and on any
day, including 4aturday or 4unday, designated
by the employer.
ART E#. HORS WORKED
SHALL INCLDE!
&. All time during which an employee is
reuired to be on duty or to be at a
prescribed workplaceB and
/. All time during which an employee is
suffered or permitted to work
PRINCIPLES IN DETERMINING
HORS WORKED=
&. All hours are hours worked which the
employee is reuired to give to his
employer, regardless of whether or not such
hour are spent in productive labor or involve
physical or mental e!ertionB
/. An employee need not leave the premises of
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
whether within or outside the premises of his
workplaceB
1. If the work performed was necessary, or it
benefited the employer, or the employee
could not abandon his work at the end of his
normal working hours because he had no
replacement, all time spent for such work
shall be considered as hours worked if the
work is with the knowledge of his employer
or immediate supervisor
). "he time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be considered
time either if the imminence of the
resumption of work reuires the employeeAs
presence at the place of work or if the
interval is too brief to be utili#ed effectively
and gainfully in the employeeAs own interest.
- .nly the ma!imum is prescribed, not minimum.
P*(%- %i5' 1,(: i) %&'('$,(' n,% 0(,&i.i%'+.
ENGAGED TO WAIT - when waiting is an
integral part of the job, it is compensable
WAITING TO BE ENGAGED - idle time is not
working time, not compensable
WHEN TRAVEL TIME
COMPENSABLE!
&. "ravel from home to work- refers to ordinary
work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace,
the time spent on travel is compensable
/. "ravel that is all in a dayAs work- time spent
by an employee in travel as part of his
principal activity, such as travel from jobsite
to jobsite during the workday, must be
counted as hours worked.
1. "ravel away from home- travel that keeps an
employee away from home overnight.
- W,(: &,-() ,$ )'*5'n are governed by
the same rules as land based employees.
"hus, they must )&,1 )-$$i3i'n% 0(,,$ that
said work is actually performed.
R')% P'(i,+) ,$ )&,(% +-(*%i,n +-(in6
1,(:in6 &,-() shall be considered as
&,-() 1,(:'+.
P('/i5in*(4 *3%i2i%i') 3,50'n)*./' when
controlled or reuired by employer and are
pursued necessarily and primarily for the
employerAs benefit,

ART E8. MEAL PERIODS
MEAL PERIODS
&. 4hould not be less than si!ty *9>, minutes,
and is time-offGnon-compensable
/. 7nder specified cases, may be less than
si!ty *9>, minutes, but should not be less
than twenty */>, minutes an must be with full
pay.
1. If less than twenty*/>, minutes, it becomes
only a rest period and is thus considered as
work time
NOTE= 2mployee must be 3,50/'%'/4
('/i'2'+ $(,5 +-%4. .therwise, it is
compensable as hours worked.
- +ealtime is n,% 3,50'n)*./' E=CEPT in
cases where the lunch period or meal time is
0('+,5in*n%/4 )0'n% $,( %&' '50/,4'(A)
.'n'$i% or 1&'(' i% i) /')) %&*n 9I
5in-%').
- 2mployees may reuest that their 5'*/
0'(i,+ .' )&,(%'n'+ so that they can leave
work earlier that the previously established
schedule.
REFISITES !
&. "he employees voluntarily agree in writing to
a shortened meal period and are willing to
waive the overtime pay for such shortened
meal periodB
/. %o diminution whatsoever in the salary and
other fringe benefits of the employees
e!isting before the effectivity of the
shortened meal periodB
1. 6ork does not involve strenuous physical
e!ertion and they are provided with
adeuate coffee breaksB
). "he value of benefits is eual with the
compensation due them for the shortened
meal period
5. ." pay will become due and demandable
after the new time scheduleB and
9. "he arrangement is of temporary duration.
ART E9. NIGHT SHIFT DIFFERENTIAL
NIGHT SHIFT DIFFERENTIAL -Additional
compensation of n,% /')) %&*n %'n 0'(3'n%
(1IC) of an employeeAs regular wage for every
hour of work done between 1I!II PM *n+ 9!II
AM, whether or not this period is part of the
workerAs regular shift.
- If work done between 1I PM *n+ 9 AM i)
,2'(%i5' 1,(:, then the &>J night shift
differential should be .*)'+ ,n &i)
,2'(%i5' (*%'.
RATIONALE
- it serves as an inducement of employment
ART E7. OVERTIME WORK
O VERTIME PAY - Additional compensation
for work performed beyond eight *?, hours
within the workerAs /)-hour workday.
1>J of &1>J if on a special holidayGrest day
&. /5J of regular wage if done on a regular
workday
/. 1>J of &5>J if on special holiday A%; rest
day
1. 1>J of />>J if on a regular holiday
RATIONALE
- employee is given ." pay because he is made
to work longer than what is commensurate with
his agreed compensation for the statutorily fi!ed
or voluntarily agreed hours of labor he is
supposed to do.
- As a rule, 3*nn,% .' 1*i2'+, as it is
intended to benefit laborers and employees.
0ut when the waiver is made in
consideration of benefits and privileges
which may even e!ceed the overtime pay,
the waiver may be permitted.
NOTE! ." pay will not preclude payment of
night shift differential pay.
- M'*/ 0'(i,+) +-(in6 ,2'(%i5' 1,(: i) n,%
6i2'n %, 1,(:'() 0'($,(5in6 ,2'(%i5' for
the reason that ." work is usually for a
short period ranging from one to three hours
and to deduct from the same one full hour
as meal period would reduce to nothing the
employeeAs ." work.
WORK DAY - the /)-hour period which
commences from the time the employee
regularly starts to work. e.g., if the worker starts
to work ? am today, the workday is from ?am
today up to ? am tom.
- "he minimum normal working hours fi!ed by
the Act n''+ n,% .' 3,n%in-,-) to
constitute the legal working day
- E70(')) *00(,2*/ .4 * )-0'(i,( i) n,% *
0('('J-i)i%' %, 5*:' ,2'(%i5' 1,(:
3,50'n)*./'. 8.62<2-, written
authority after office hours during rest days
and holidays are reuired for entitlement to
compensation.
- "he right to ." pay 3*nn,% .' 1*i2'+.
4uch waiver is contrary to law and public
policy.
E=CEPTIONS!
&. 6hen the waiver stipulates higher payment
or rate of ." payB or
/. 6here the contract of employment reuires
work for more than eight hours of work at
specified wage per day providing for a fi!ed
hourly rate or that the daily wages include
overtime pay.
COMPRESSED WORKWEEK -allowable
under the following conditions=
&. It is voluntary on the part of the worker
/. "here will be no diminution of the weekly or
monthly take-home pay and fringe benefits
of the employeesB
1. "he value of the benefits that will accrue to
the employees under the proposed schedule
is more than or at least commensurate with
the one-hour ." pay that is due them during
weekdays based on the employeeAs
uantification
). "he one-hour ." pay will become due and
payable if they are made or permitted to
work on a day not scheduled for work on the
compressed work week
5. "he work does not involve strenuous physical
e!ertion and employees must have
adeuate rest periods
5. "he arrangement is of temporary duration.
ART EE. NDERTIME NOT OFFSET BY
OVERTIME
n+'(%i5' 1,(: ,n *n4 0*(%i3-/*( +*4 )&*//
n,% .' ,$$)'% .4 ,2'(%i5' 1,(: ,n *n4
,%&'( +*4. 3ermission given to the
employee to go on leave on some other
day of the week shall not e!empt the
employer from paying the additional
compensation.
RATIONALE
- An employeeAs regular pay rate is lower than
the overtime rate. .ffsetting the undertime
hours against the overtime hours would
result in undue deprivation of the
employeeAs e!tra pay for overtime work.
ART EB. EMERGENCY OVERTIME
WORK
WHEN WORKER MAY BE REFIRED
TO RENDER OT!
(WNNCN)
W &. Country is at war or any other
nationalGlocal emergency has been
declared by the Chief
2!ecutiveGCongress
N /. %ecessary to prevent loss of
lifeGpropertyG in case of actualGimpending
emergency in the locality
1. "here is urgent work to be performed
on machines, installations, or euipment
in order to avoid serious lossGdamage to
the employer or some other causes of
similar nature
N ). 6ork is necessary to prevent
lossGdamage to perishable goodsB and
C 5. where the completion or continuation
of the work started before the eighth
hour is necessary to prevent serious
obstruction or prejudice to the business
or operations of the employer.
N 9. when it is necessary to avail of
favorable weather or environmental
conditions where performance or uality
of work is dependent thereon
ART BI. REGLAR WAGE
- include the cash wage only, without deduction
on account of facilities provided by the
employer
CHAPTER II
WEEKLY REST PERIOD
ART B1. RIGHT TO A WEEKLY REST
DAY
- 2mployees should be provided a rest period
of n,% /')) %&*n %1'n%4 $,-( (2#)
3,n)'3-%i2' &,-() *$%'( '2'(4 )i7 (9)
3,n)'3-%i2' n,(5*/ 1,(: +*4).
- 2mployer shall schedule the weekly rest day
of his employees subject to collective
bargaining agreement. 8owever, the
employer shall (')0'3% %&' 0('$'('n3' ,$
'50/,4'') *) %, %&'i( 1'':/4 (')% +*4
1&'n )-3& 0('$'('n3' i) .*)'+ ,n
('/i6i,-) 6(,-n+). 0ut when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employeeAs choice
for at least two */, days a month
ART B2. WHEN EMPLOYER MAY
REFIRE WORK ON A REST DAY
WHEN EMPLOYEE MAY BE
REFIRED TO RENDER WORK
ON A REST DAY!
&. In case of actual or impending emergencies
caused by serious accident, fire, flood
typhoon, earthuake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
/. urgent work to be performed on the
machinery, euipment or installation to avoid
serious loss which the employer would
otherwise suffer
1. abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be e!pected to resort to other
measures
). prevent serious loss of perishable goods
5. nature of work reuires continuous operation
for seven days a week
9. work is necessary to avail of favorable
weather or environmental conditions where
performance or uality of work depends
upon them
ART B". COMPENSATION FOR REST
DAY; SNDAY OR HOLIDAY WORK
- this article does not prohibit a stipulation in
the C0A for higher benefits
SPECIAL HOLIDAYS
&. All 4aintAs ;ay -%ovember &
/. $ast ;ay of the Eear-;ecember 1&
1. And all other days declared by law or
ordinances to be a special holiday or non-
working day
NOTE= 1,(:'+ O regular wage plus 1>J
premium pay
n,% 1,(:'+ O none
ADDITIONAL COMPENSATION FOR
WORK ON A REST DAY; SNDAY
OR HOLIDAY WORK!
&. 6ork on a scheduled rest day - 1>J of
regular wage
/. %o regular workdays and rest days -1>J of
regular wage for work on 4undays :
8olidays
1. 6ork on 4pecial 8olidays -1>J of regular
wage
). 8oliday 6ork falls on 4cheduled -est ;ay -
5>J of regular wage
CHAPTER III
HOLIDAYS; SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
ART B#. RIGHT TO HOLIDAY PAY
HOLIDAY PAY - A dayAs pay given by law to
an employee even if he does not work on a
regular holiday. It is limited to the ten *&>,
regular holidays listed by law.
- employee should not have been absent
without pay on the working day preceding the
regular holiday
A(%. B#(.) refers to regular holidays, special
holidays are taken care of under Art. '1.
PREMIM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.
REGLAR HOLIDAYS!
&. %ew EearAs ;ay -Ianuary &
/. +aundy "hursday -+ovable date
1. @ood Driday- +ovable date
). Araw ng Cagitingan -April '
5. $abor ;ay -+ay &
9. Independence ;ay -Iune &/
(. %ational 8eroes ;ayP-$ast 4unday of
August
?. 0onifacio ;ay-%ovember 1>
'. Christmas ;ay-;ecember /5
&>. -i#al ;ay-;ecember 1>
N,%'! C,50'n)*./' 1&'%&'( 1,(:'+ ,(
-n1,(:'+.
DOBLE HOLIDAY PAY
1. />>J of the basic wage pro'ided, he works
on that day and was present or on leave
with pay on the preceding workday. If
on leave without pay, rate still applies if
leave is authori#ed.
2. )>>J if he worked F as per ;.$2 +emo if
there are / regular holidays in one day eg.
April ' and @ood Driday. Pro'ided the
employee worked on the day prior to the
regular holiday or on leave with pay or on
authori#ed absence.
1. If there are two succeeding holidays eg.,
+aundy "hursday and @ood Driday, the
employee must be present the day before
the scheduled regular holiday to be entitled
to compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.
REGLAR
HOLIDAY
SPECIAL
HOLIDAY
- compensable even - not compensable if
if unworked subject
to certain conditions
unworked
- limited to the &>
enumerated by the
$C
- not e!clusive since
law may provide for
other special
holidays
- rate is twice the
regular rate if
worked
- rate is &1>J if
worked
ART B8. RIGHT TO SERVICE
INCENTIVE LEAVE
SERVICE INCENTIVE LEAVE (SIL) - Dive *5,
days leave with pay for every employee
who has rendered at least one *&, year of
service.
BT DOES NOT APPLY TO THOSE
WHO ARE=
already enjoying the said benefitsB or
enjoying vacation leave with pay for at least 5
days
those employed in establishments regularly
employing less than &> employees
those employed in establishments e!empted
from granting this benefit by the 4ecretary
of $abor.
ONE (1) YEAR OF SERVICE.- service within
&/ months, whether continuous or broken,
reckoned from the date the employee started
working including authori#ed absences and paid
regular holidays unless the number of working
day in the establishment as a matter of practice
or policy, or provided in the employment contract
is less than &/ mos.
- 4I$ is commutable i.e., 3,n2'(%i./' %,
3*)&- %&' 3*)& 'J-i2*/'n% is aimed
primarily at encouraging workers to work
continuously and with dedication to the
company.
ART B9. SERVICE CHARGES
TO BE DISTRIBTED TWICE A
MONTH AND AT THE RATE OF!
&. ?5J for all covered employees to be eually
distributed among them
/. &5J for management *may answer for
losses and breakages or distributed to
management,
- If collection of service charges is *.,/i)&'+,
the share of covered employees shall be
considered in%'6(*%'+ in %&'i( 1*6') on
the basis of the average monthly share of
each employee for the past &/ months
immediately preceding the abolition.
TITLE II
WAGES
CHAPTER I
PRELIMINARY MATTERS
ART B7. DEFINITION
WAGE - the remuneration or earnings,
however designated, capable of being
e!pressed in terms of money, whether fi!ed
or ascertained on a time, task, piece, or
commission basis or other method or
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 of board,
lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAYAS WAGE FOR A FAIR DAYAS
LABOR - if there is no work performed by
the employee, there can be no wage or
pay unless the laborer was able, willing,
and ready to work but was prevented by
management or was illegally locked out,
suspended or dismissed.
WAGE SALARY
- compensation for
manual labor
- denotes higher
degree of
employment
- %ot subject to
e!ecution
- subject to e!ecution
*@aa vs. CA,
FACILITIES F shall include all articles or
services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employerAs business.
FACILITIES SPPLEMENTS
- Are items of
e!pense necessary
for the laborerAs and
his familyAs
e!istence and
subsistence
- Constitute e!tra
remuneration or
special privileges or
benefits given to or
received by the
laborers over and
above their ordinary
earnings wages
- part of the wage - independent of the
wage
- deductible from the
wage
- not wage
deductible
ART. BE. APPLICATION OF TITLE

T&i) Ti%/' )&*// n,% *00/4 %, %&'
$,//,1in6!
&. household or domestic helpers
/. homeworkers engaged in needle-work
1. workers employed in any establishment
duly registered with the %ational Cottage
Industry
). 6orkers in any duly registered cooperatives
CHAPTER II
MINIMM WAGE RATES
ART 1II. PROHIBITION AGAINST
ELIMINATION OR DIMNITION OF
BENEFITS
LEGAL REFATS. BEFORE FACILITIES
CAN BE DEDCTED FROM THE
EMPLOYEESA WAGES!
&. 3roof that such facilities are customarily
furnished by the trade B
/. <oluntarily Accepted in writing by the
employee
1. Charged at Dair : -easonable <alue
THE NON-DIMINTION RLE -the benefits
being given to employees cannot be taken
back or reduced unilaterally by the
employer because the benefit has become
part of the employment contract, written or
unwritten.
T&' (-/' i) *00/i3*./' i$ i% i) )&,1n %&*%
%&' 6(*n% ,$ %&' .'n'$i% i)!
&. based on an e!press policy, or
/. has ripened into practice over a long period
of time, and the practice is consistent and
deliberate.
1. It is not due to an error in the
construction Gapplication of a doubtful or
difficult uestion of law.
- 0ut even in cases of error, it should be
shown that the correction is being done
soon after the discovery of the error.
BONS - A supplement or employment
benefit given under certain conditions, such
as success of the business or greater
production or output. As a rule, it is an
amount granted voluntarily to an employee
for his industry and loyalty which
contributed to the success and reali#ation
of profits of the employerAs business.
"herefore, from a legal point of view, it is
not a demandable and enforceable
obligation. ,nless, it was promised to be
given without any conditions imposed for its
payment, as such, it is deemed part of the
wage.
1"
TH
MONTH PAY (OR KITS EFIVALENTL)
-additional income based on wage reuired by
3.;. ?5& which is euivalent to &G&/ of the total
basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than ;ec.
/)
COVERAGE!
- All rank-and-file employees regardless of their
designation or employment status and
irrespective of the method by which their wages
are paid, are entitled to this benefit, pro'ided,
that they have 1,(:'+ $,( *% /'*)% ,n' (1)
5,n%& +-(in6 %&' 3*/'n+*( 4'*(.
FORMS!
&. Christmas bonus
/. midyear bonus
1. profit sharing paymentsB and
). other cash bonuses amounting to not less
than &G&/ of its basic salary.
- ;ifference of opinion on how to compute the
&1
th
month pay does not justify a strike
- It must always be in the form of /'6*/ %'n+'(
. Dree rice, electricity cash and stock
dividends, C.$A not euivalent
ART 1I1. PAYMENT BY RESLTS
CATEGORIES OF PIECE-RATE
WORKERS!
&. those who are paid piece rates as
prescribed in 3iece -ate .rders by the
;.$2
/. "hose who are paid output rates which are
prescribed by the employer and are not yet
approved by the ;.$2
WORKERS PAID ON PIECE-RATE BASIS -
shall refer to those who are paid a standard
amount for every piece or unit of work produced
that is more or less regularly replicated, without
regard to the time spent in producing the same.
BENEFITS PAYABLE TO PIECE-RATE
WORKERS!
&. Applicable statutory minimum daily rateB
/. Eearly service incentive leave of five days
with payB
1. %ight shift differential pay
). 8oliday pay
5. +eal and rest periods
9. ." pay *conditional,
(. 3remium pay *conditional,
8. &1
th
month pay
'. other benefits granted by law, individual or
collective bargaining agreement or company
policy or practice.
CHAPTER III
PAYMENT OF WAGES
ART 1I2. FORMS OF PAYMENT
EMPLOYER CANNOT PAY HIS
WORKERS BY MEANS OF!
&. promissory notes
/. vouchers
1. coupons
). tokens
5. tickets
9. chits
(. or any object.
GENERAL RLE!
- payment by legal tender
E=CEPTIONS!
- checks or money orders may be paid if=
&. the same is customary on the date of
effectivity of the $CB
/. necessary because of special
circumstancesB or
1. as stipulated in the C0A
ART 1I". TIME OF PAYMENT
WHEN TO PAY!
- at least once every two */, weeks or twice a
month at intervals not e!ceeding si!teen
*&9, days
- $,(3' 5*H'-(' or ,%&'(
3i(3-5)%*n3') .'4,n+ %&'
'50/,4'(A) 3,n%(,/, payment must be
made immediately after such occurrence
have ceased.
ART.1I#. PLACE OF PAYMENT
WHERE TO PAY!
- 4hall be made at or near the place of
undertaking,
E=CEPTIONS!
&. 6hen payment cannot be effected at or near
the place of work by reason of deterioration
of peace and security
/. 6hen the employer provides for free
transportation to the employees back and
forthB
1. And under analogous circumstances
- payment of wages in bars, night or day
clubs, massage clinics or similar
establishments are prohibited e!cept for the
workers therein.
PAYMENT THR BANKS!
REFISITES !
&. "here must be written permission of the
majority of the employees concerned in an
establishmentB
/. "he establishment must have /5 or more
employeesB and
1. "he bank must be located within one
kilometer radius to the bank from the
location of the establishment
- payment through the A"+ is allowed
ART 1I8. DIRECT PAYMENT OF
WAGES
TO WHOM PAID
- wages shall be paid directly to the workers
to whom they are due.
E=CEPTIONS!
a. in case of force majeureGspecial
circumstances, payment may be made
through another person under written
authority where the worker has died, the
b. employer may pay the wages of the
deceased worker to the heirs of the latter,
through the 4ecretary of $abor or his
representative, without the necessity of
intestate proceedings, after the heirs have
e!ecuted an affidavit attesting to their
relationship to the deceased and the fact
that they are his heirs to the e!clusion of all
others
ART 1I9. CONTRACTOR OR
SBCONTRACTOR
LABOR ONLY CONTRACTING - where the
person supplying workers to an employer does
not have )-.)%*n%i*/ 3*0i%*/ ,( in2')%5'n% in
the form of tools, euipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.
INDEPENDENT CONTRACTOR - one who
e!ercises independent employment and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer e!cept as to the result
thereof.
- A 5'(' )%*%'5'n% in * 3,n%(*3% with a
company that laborers who are paid
according to the amount and uality of work
are independent contractors +,') n,%
3&*n6' %&'i( )%*%-) *) 5'(' '50/,4'')
in 3,n%'50/*%i,n ,$ /*.,( /*1).
REFISITES FOR A CONTRACTING
OR SBCONTRACTING TO BE !
&. where the contractor or subcontractor
carries on a distinct and independent
business and undertakes to perform the job
on his own account and under his own
responsibility, according to its own manner
and method and free from the control and
direction of the principal in all matters
connected with the performance of the work
e!cept as to the results thereofB
/. the contractor or subcontractor has
substantial capital or investmentB and
1. the agreement between the principal and
contractor or subcontractor assures the
contractual employees entitlement to all
labor and occupational safety and health
standards, free e!ercise of the right to self-
organi#ation, security of tenure and social
and welfare benefits.
- S-.)%*n%i*/ 3*0i%*/ n''+ n,% .' 3,-0/'+
1i%& in2')%5'n% in %,,/) ,( 'J-i05'n%.
"his is clear from the use of the conjunction
K,(L.
?OB
C
O
NT
R
A
CT
IN
G
LABOR ONLY
CONTRACTING
&. %o 2- 2
relationship e!ist
between
employer and the
contractorAs
employee e!cept
when the
contractor or
subcontractor
fails to pay the
wages of his
employees
&. 2mployer is treated
as direct employer
of the person
recruited in all
instances
/. liability is limited
to unpaid wages
and other labor
standards
violations
/. liable to all rights
duties and liabilities
under labor
standards laws
including the right to
self- organi#ation
1. 3ermissible 1. 3rohibited by law
). Contractor has
substantial capital
or investment
). Contractor has no
substantial capitalG
investment
WORKING CONDITIONS - -efers to the
terms and circumstances affecting the
employment of an employee, including
policies, programs and regulations
governing his employment status, work,
and work relationships. "hey are, as a rule,
determined by the employer.
ART. 11I. WORKER PREFERENCE IN
CASE OF BANKRPTCY
- "his Article did not sweep away the
overriding preference accorded under the
scheme of the Civil Code to ta! claims of the
government.
- just a preference, must yield to special
preferred credit, e.g. secured creditors
- "he $,(5*/ +'3/*(*%i,n ,$ in),/2'n34 ,(
.*n:(-0%34 ,( * H-+i3i*/ /iJ-i+*%i,n ,$ %&'
'50/,4'(A) .-)in')) is a condition sine
ua non to the operation of the preference
accorded to workers under Art. &&>.
CHAPTER IV
PROHIBITIONS REGARDING WAGES
ART 112. NON-INTERFERENCE IN
DISPOSAL OF WAGES
In ('/*%i,n %, %&' Ci2i/ C,+'!
A(%. 17I8. "he laborerAs wages shall be paid in
legal currency.
A(%. 17I9. 6ithholding of the wages e!cept for
a debt due, shall not be made by the employer
A(%. 17I7. "he laborerAs wages shall be a lien
on the goods manufactured or the work done.
A(%. 17IE. "he laborerAs wages shall not be
subject to e!ecution or attachment e!cept for
debts incurred for food, shelter, clothing, and
medical attendance.
A(%. 17IB. "he employer shall neither sei#e nor
retain any tool or other articles belonging to the
laborer.
PROHIBITIONS REGARDING WAGES!
&. 3ayment of wages with less freuency than
once *&, a month.
/. $imitationsGInterference by the employer
with the employees freedom to dispose of
his wages.
1. Dorcing, CompellingG.bliging employees to
purchase merchandise , commodities or
other properties from the employer or from
any other person, or to make use of any
store or service of such employer or any
other person
). 6ithholding of wages
5. ;eduction of wages as consideration of a
promise of employment or retention in
employment
9. -efusal to payG -eduction of wages and
benefits, dischargeG discrimination against
any employee as retaliatory measures
against any employee who has filed any
complaint or instituted any proceedings
against his employer
ART 11". WAGE DEDCTION
ALLOWABLE DEDCTIONS!
WITH EMPLOYEES CONSENT!
&. 444 3ayments
/. +2;ICA-2
1. Contributions to 3A@-I0I@ Dunds
). value of meals and others
5. payments to third persons with employees
consent
9. deduction of absences
W<OT EMPLOYEES CONSENT!
&. 6orkerAs insurance acuired by the employer
/. 7nion ;ues, where the right to check-off has
been recogni#ed by the employer
1. Cases where the employer is authori#ed by
law or regulations issued by the 4ecretary of
$abor
). debts of the employee to the employer which
have become due and demandable
ART 11#. DEPOSITS FOR LOSS OR
DAMAGE

- D'0,)i%) $,( L,)) ,( D*5*6' to tools,
materials and euipment supplied by the
employer )&*// n,% .' 5*+', E=CEPT
when the trade, occupation or businesses of
the employer recogni#es, or considers the
0(*3%i3' of making deductions or reuiring
deposits necessary or desirable.
REFISITES FOR DEDCTION FOR
LOSS OR DAMAGE !
&. employee clearly shown responsible
/. opportunity to show cause to show why
deduction should not be made
1. deduction is fair and reasonable and shall
not e!ceed the actual loss or damage
). does not e!ceed />J of the employees
wages in a week.
CHAPTER V
WAGE STDIES; WAGE
AGREEMENTS AND WAGE
DETERMINATION
ART 122. CREATION OF THE
REGIONAL TRIPARTITE WAGES AND
PRODCTIVITY BOARDS
WHO MAY SET MINIMM WAGE!
&. -egional "ripartite 6ages and 3roductivity
0oard
/. Congress
MINIMM WAGE - "he lowest wage rate fi!ed
by law that an employer can pay his
employees.
ART. 12" WAGE ORDER
WAGE ORDER F an order issued by the
-egional 0oard whenever the conditions in the
region so warrant after investigating and
studying all pertinent facts and based on the
standards and criteria prescribed by the $C, the
-egional 0oard proceeds to determine whether
to issue the same or not.
EFFECTIVITY ,$ * 1*6' O(+'( F it shall take
effect after &5 days from the its complete
publication in at least one newspaper of general
circulation in the region.
FREFENCY ,$ * 1*6' ,(+'( - 6age .rder
issued by the 0oard may not be disturbed for a
period of &/ months from its effectivity and no
petition for wage increase shall be entertained
during said period. E=CEPTION= 6hen
Congress itself issues a law increasing wages.
ART 12#. STANDARDS<CRITERIA FOR
MINIMM WAGE FI=ING
FACTORS FOR DETERMINING
REGIONAL MINIMM WAGE RATES
(DACNNIPFEE)
&. ;emand for living wagesB
/. 6age Adjustment vis-a vis the consumer
price inde!B
1. Cost of living and changes or increases
thereinB
). %eeds of workers and their familiesB
5. %eed to induce industries to invest in the
countrysideB
9. Improvements in standards of livingB
(. 3revailing wage levelsB
?. Dair -eturn of the capital invested and
capacity to pay of employersB
'. 2ffects on 2mployment @eneration and
Damily IncomeB
&>. 2uitable ;istribution of Income : 6ealth
along the imperatives of economic and
social development
WAGE DISTORTION - situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
uantitative 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.
CORRECTING WAGE DISTORTION
ni,niG'+ E)%*./i)&5'n%
&. %egotiate to correct the distortion.
/. Any dispute arising therefrom should be
resolved through grievance procedure under
their C0A.
1. If the dispute remains unresolved, through
voluntary arbitration.
E)%*./i)&5'n%) 1i%&,-% ni,n)
&. "he employers and workers shall endeavor
to correct the distortion.
/. Any dispute arising therefrom shall be
settled through the %C+0 and
1. If it remains unresolved after &> days of
conciliation, it shall be referred to the %$-C.
- W*6' +i)%,(%i,n i) n,n- )%(i:'*./'.
Is the employe le!"lly o#l$!e% to ty
& 'oe't " ("!e %$stot$o)*
I% *00'*() ),. A(%i3/' 12# ,$ %&' C,+'
provides that N the employer and the union shall
negotiate to correct the distortions.H If there is
no union, N the employer and the workers shall
endeavor to correct such distortions.
M+st the pe,$o+s p"y !"ps #e
estoe%*
6hile that is the aim, it need not
necessarily be restored to the last peso. An
*00('3i*./' +i$$'('n%i*/, a significant pay gap
should suffice as correction of the distortion.
CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
ART. 12E. VISITORIAL AND
ENFORCEMENT POWER
ART. 12B. RECOVERY OF WAGES;
SIMPLE MONEY CLAIMS AND OTHER
BENEFITS
- n+'( A(%. 12B , the -egional ;irector is
empowered through summary proceeding
and after due notice, to hear and decide
cases involving recovery of wages and other
monetary claims and benefits, including
legal interests.
REFISITES !
&. "he claim is presented by an employee or
person employed in domestic or household
service or househelperB
/. "he claim arises from employer-employee
relationsB
1. "he claimant does not seek reinstatementB
and
). "he aggregate money claim of each
employee or househelper does not e!ceed
35, >>>.>>
- A33')) %, '50/,4'(A) ('3,(+) *n+
0('5i)')
the dayGnight whenever work is being
undertaken therein
includes the right to copy therefrom,
to uestion any employee : investigate
any fact, condition or matter which may
be necessary to determine violations or
which may aid in the enforcement of the
Code and of any labor law, wage order,
or rules and regulations
- I))-' C,50/i*n3' O(+'() (ART. 12E)
based on the findings of labor
employment and enforcement officers or
industrial safety engineers made in the
course of inspection
- I))-' W(i%) ,$ E7'3-%i,n (ART. 12E)
for the enforcement of orders
e-'ept in cases where the employer
contests the findings of the said labor
officers and raises issues supported by
documentary proofs which were not
considered in the course of inspection.
- O(+'( W,(: S%,00*6'<S-)0'n)i,n ,$
O0'(*%i,n)
when non-compliance with the law or
implementing rules and regulations
poses grave : imminent danger to the
health and safety of the workers in the
workplace.
- C,n+-3% H'*(in6) 1i%&in 2# &,-()
to determine whether an order for
stoppage of workGsuspension of
operations shall be lifted or not.
employer shall pay the employees
concerned their salaries in case the
violation is attributable to his fault
- R'J-i(' '50/,4'() %, :''0 *n+ 5*in%*in
E50/,45'n% R'3,(+)
- as may be necessary in aid of his
visitorial and enforcement powers
ART 12E ART 12B
&. <isitorial and
enforcement
power of the
4ecretary of
$abor Ghis duly
authori#ed
representatives
e!ercised through
routine
inspections of
establishments
&. 3ower of the
-egional ;irector or
any duly authori#ed
hearing officers to
hear and decide
matters involving
the recovery of
wages, upon
complaint of any
interested party
/. reuires the
e!istence of 2-2
-elationship
/. 2-2 relationship not
necessary since it
should not include a
claim for
reinstatement
1. %o limit as to
amount of claim
1. Aggregate claim of
each complainant
does not e!ceed
35,>>>
). Appeal is with
4ec.of $abor B
period of appeal
is &> calendar
days
). Appeal with %$-CB
period of appeal is
5 calendar days
5. 3erson e!ercising
the power is the
4ec. .f $abor or
any of his duly
authori#ed
representatives
who may or may
not be a regional
director
5. "he power is
vested upon a
regional director or
any duly authori#ed
hearing officer of
the ;.$2.
TITLE III
WORKING CONDITIONS FOR
SPECIAL GROP OF EMPLOYEES
CHAPTER I
EMPLOYMENT OF WOMEN
ART 1"I. NIGHTWORK PROHIBITION
- N, 1,5*n , regardless of age, shall be
employed or permitted or suffered to work,
with or without compensation in any =
&. Industrial undertaking between &>3+-9A+
/. CommercialG%on-Industrial undertaking
between &/ +%-9A+
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than
' consecutive hours
ART 1"1. E=CEPTIONS
&. ActualGImpending 2mergencies
caused by serious accident, flood,
typhoon, epidemic or other disasters or
calamity, to prevent loss of life or
property, or in cases of force majeure or
imminent danger to public safety
/. 7rgent work to be performed on
machineries, euipment or installation, to
avoid serious loss
1. 6ork is necessary to prevent serious loss of
perishable goods
). 6here she holds a responsible position of
managerialGtechnical natureGengaged to
provide health and welfare service
5. %ature of the work reuires the manual skill
and de!terity of women workers : cannot be
performed with eual efficiency by male
workers
9. 6here women workers are immediate family
members of the family operating the
establishment or undertaking
(. Analogous cases
ART 1"2. FACILITIES FOR WOMEN
"he 4ecretary of $abor may reuire
employers to=
&. 3rovide seats proper for women and permit
them to use the seats when they are free
from work or during office hours provided
the uality of the work will not be
compromisedB
/. "o establish separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for womenB
1. "o establish a nursery in the establishmentB
). "o determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like
ART. 1"" MATERNITY LEAVE
BENEFITS
MATERNITY LEAVE NDER THE SSS
LAW
A female member, who need not be
legally married, who has paid for *% /'*)% %&(''
(") 5,n%&/4 3,n%(i.-%i,n) in the &/-month
period immediately preceding the semester of
her childbirth or miscarriage shall be paid a daily
maternity benefit euivalent to &>>J of her
average daily salary credit for 9> days or (?
days, in case of caesarian delivery.
REFISITES !
&. 2mployee notified her employer of her
pregnancy of the probable date of her
childbirth
/. Dull payment be advanced by the employer
within 1> days from the filing of the maternity
leave application
1. "hat payment of daily maternity benefits
shall be a bar to the recovery of sickness
benefits
). "hat the maternity benefits shall be paid
only for the first four *), deliveries or
miscarriages
5. "hat the 444 shall immediately reimburse
the employer of &>>J of the amount of
maternity benefits advanced to the
employee by the employer
9. "hat if an employee member should give
birth or suffer a miscarriage without the
reuired contributions having been remitted
for her by her employer to the 444, or
without the latter having been previously
notified by the employer of the time of the
pregnancy, the employer shall pay to the
444 damages euivalent to the benefits
which said employee member would
otherwise have been entitled to.
- ART 1"" (.) )-.)i)%) , i.e., the maternity
leave shall be e!tended 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 e!tended
leave may be charged.
LIMIT OF THE BENEFIT! Applies only for the
first four deliveries irrespective of who is the
father of the children, and may not be availed of
in addition to sickness benefit under the 4ocial
4ecurity program.
RA E1E7 (PATERNITY LEAVE)
- "his law grants paternity leave of )'2'n +*4
1i%& $-// 0*4 to all married male employees
in the private and public sectors.
- It is available only for the $i()% $,-(
+'/i2'(i') ,$ %&' /'6i%i5*%' )0,-)' with whom
the husband is cohabiting.
DELIVERY F includes childbirth, miscarriage, or
abortion.
P-(0,)'= to enable the husband to lend support
to his wife during the period of recovery andGor in
the nursing of the newly born child.
CONDITIONS !
&. he is an employee at he time of the delivery
of his childB
/. he is cohabiting with his spouse at the time
she gives birth or suffers a miscarriageB
1. he has applied for paternity leave B and
). his wife has given birth or suffered a
miscarriage
- 3aternity leave, if not availed of, is n,%
3,n2'(%i./' %, 3*)&.
WIFE - refers to the lawful wife which means the
woman who is legally married to the male
employee concerned.
- 6here the male employee is already
enjoying the paternity leave by reason of
any law, decree, e!ecutive orders or any
contract, agreement or policy between
employer and employee and the e!isting
paternity benefit is greater, %&' 6('*%'(
.'n'$i% )&*// 0('2*i/D i$ /'))'(; %&'
'7i)%in6 .'n'$i% )&*// .' *+H-)%'+ %, %&'
'7%'n% ,$ %&' +i$$'('n3'.
ART 1"8. 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 se!.
A3%) ,$ Di)3(i5in*%i,n!
a. 3ayment of a lesser compensation for work
of eual value.
b. Davoring a male employee over a female
employee solely on the account of their
se!es.
S'7-*/ H*(*))5'n% in * W,(:-R'/*%'+ ,(
E50/,45'n% En2i(,n5'n% !
&. the se!ual favor is made as a
condition in the hiring or in the
employment, re-employment or
continued employment of said
individual or in granting said individual
favorable compensation, terms,
conditions, promotions, or privilegesB
or the refusal to grant the se!ual favor
results in limiting, segregating or
classifying the employee which in
anyway would discriminate, deprive or
diminish employment opportunities or
otherwise adversely affect said
employee
/. the above acts would impair the
employeeAs rights or privileges under
e!isting labor laws or
1. "he above acts would result in an
intimidating, hostile, or offensive
environment *4ec. 1QaR, -A %o. (?((,
ART 1"9. STIPLATION AGAINST
MARRIAGE
- it shall be unlawful for an employer to reuire
as a condition for employment or continuation of
employment that a woman employee shall not
get married, or to stipulate e!pressly 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.
ART 1"E. CLASSIFICATION OF
CERTAIN WOMEN WORKERS
- Any woman who is permitted to work or
suffered to work, with or without
compensation, in any night club, cocktail
lounge, massage clinic, bar or similar
establishment, under the effective control or
supervision of the employer for a substantial
period of time as determined by the
4ecretary of $abor, shall be considered as
an employee of such establishment for
purposes of labor and social legislation.
CHAPTER II
EMPLOYMENT OF MINORS
ART 1"B. MINIMM EMPLOYABLE
AGE
- Any person between ages &5 and &? may
be employed in any non ha#ardous work.
E73'0%i,n *n+ 3,n+i%i,n ,n %&'
'50/,45'n% ,$ * 3&i/+ .'/,1 18!
&. 6hen the child works directly under the sole
responsibility of hisGher parents or legal guardian
who employs members of hisGher family only
under the following conditions=
a. employment does not endanger the
childAs life, safety, health and morals
b. employment does not impair the childAs
normal development
c. the parentGlegal guardian provides the
child with the primary andGor secondary
education prescribed by ;2C4
/. 6here the childAs employment or participation
in public entertainment or information through
cinema, theater, radio, or television is essential,
provided that=
a. employment does not involve
advertisements or commercials
promoting alcoholic beverages,
into!icating drinks, tobacco and its by-
products or e!hibiting violenceB
b. "here is a written contract approved
by the ;.$2B and
c. "he conditions prescribed for the
employment of minors Sabove statedT
are met.

NONHA>ARDOS WORK OR NDERTAKING
F one where the employee is not e!posed to any
risk which constitutes an imminent danger to his
safety and health.
HA>ARDOS WORKPLACES!
&. 6here the nature of the work e!poses the
workers to dangerous environmental
elements, contaminants or work conditionsB
/. 6here the workers are engaged in
construction work, logging, fire-fighting,
mining, uarrying, blasting, stevedoring,
dock work, deep-sea fishing, and
mechani#ed farmingB
1. 6here the workers are engaged in the
manufacture or handling of e!plosives and
other pyrotechnic productsB
). 6here the workers use or are e!posed to
heavy or power-driven machinery or
euipmentB and
5. 6here the workers use or are e!posed to
power-driven tools,
CHAPTER III
EMPLOYMENT OF HOSEHELPERS
RIGHTS OF HOSEHELPERS!
&. minimum cash wage
/. non-assignment to non- household work
1. opportunity for education= if under &? *cause
of education part of compensation,
). boardG lodging, medical attendance
5. just and humane treatment
9. indemnity for unjust termination of services
(. just causes for termination
?. right not to be reuired to work more than &>
hours a day
'. for days vacation each month
&>. to regular wages if employed in industrial or
commercial or agricultural undertaking
&&. funeral e!penses must be paid by employer
if the househelper has no relatives with
sufficient means in the place where the head
of the family lives.
&/. at least elementary education
&1. employment certification
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
INDSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
INDSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
BOOK FOR
HEALTH; SAFETY AND SOCIAL
WELFARE BENEFITS
TITLE I
MEDICAL; DENTAL AND
OCCPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
ART 189. FIRST-AID TREATMENT
FIRST-AID TREATMENT F adeuate,
immediate, and necessary medical and dental
attention or remedy given in case of injury or
illness suffered by a worker during employment,
irrespective of whether or not such injury or
illness is work-connected, before a more
e!tensive medical andGor dental treatment can
be secured.
FIRST AIDER F any person trained and duly
certified as ualified to administer first aid by the
3hil. %ational -ed Cross or by any other
organi#ation accredited by the former.
TITLE II
EMPLOYEESA COMPENSATION AND
STATE INSRANCE FND
WORKMENAS COMPENSATON- A general
and comprehensive term applied to those laws
providing for compensation for loss resulting
from the injury, disablement or death of a
workman through industrial accident, casualty or
disease.
COMPENSATION - +oney relief afforded
according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for
breach of contract or for tort.
6.-C+2%A4
C.+32%4A"I.%
AC"
2+3$.E224
C.+32%4A"I.%
$A6
&. "here is a
presumption of
compensability
&. no presumption of
compensability
/. there is a
presumption of
aggravation
/. no presumption of
aggravation
1. there is a need for
the employer to
controvert the
claim within &)
days otherwise
he is deemed to
have waived the
right
1. no need for the
employer to
controvert
). payment of
compensation
made by the
employer
). payment of
compensation
made by 444G@4I4
through the 4tate
Insurance Dund
ART 19#. DEFINITION OF TERMS.
IN?RY - Any harmful change in the human
organism from any accident arising out of and in
the course of employment.
GRONDS FOR AN IN?RY TO BE
COMPENSABLE
&. the employee must have been injured at the
place where the work reuires him to be
/. the employee must have been performing
his official functions
1. if the injury is sustained elsewhere, the
employee must have been e!ecuting an
order for the employer
). the injury was not due to the employeeAs
into!ication, willful intention to injure or kill
himself or another, notorious negligence or
otherwise prohibited under this "itle.
SICKNESS - Any illness definitely accepted
as an occupational disease listed by the
Commission ,( any illness caused by
employment subject to proof that the risk of
contracting the same is increased by working
conditions.
C,n+i%i,n) $,( *n ,33-0*%i,n*/
+i)'*)' *n+ %&' (')-/%in6 +i)*.i/i%4 ,(
+'*%& %, .' 3,50'n)*./' !
&. "he employeeAs work must involve the risk
described therein
/. "he disease was contracted as a result of
the employeeAs e!posure to the described
risksB
1. "he disease was contracted within a period
of e!posure and under such other factors
necessary to contract itB
). "here was no notorious negligence on the
part of the employee
DEATH - $oss of life resulting from injury
or sickness
DISABILITY -$oss or impairment of a
physical or mental function resulting from injury
or sickness.
DIRECT PREMISES RLE @ as a general
rule, the accident should have occurred at the
place of work to be compensable

E=CEPTIONS TO THE DIRECT
PREMISES RLE
1. INGRESS- EGRESS< PRO=IMITY RLE-
when the employer is about to leave or
about to enter the premises of the employer
by way of the customary or e!clusive means
of ingress or egress.
2. GOING TO OR COMING FROM WORK-
when the injury occurred when the
employee is proceeding to or from his work
on the premises of the employer
must be * 3,n%in-in6 *3% and has not
diverted therefrom by any other activity
and he has not departed from his usual
route to or from his workplace and if the
employee is on a special errand, it must
have been official and in connection with
his work.
1. E=TRA-PREMISES RLE F *or the shuttle
bus rule, where the company provides the
means of transportation in going to or
coming from the place of work is liable to the
injury sustained by the employees while on
board said means of transportation.
). SPECIAL ERRAND RLE F injury
sustained outside the company premises is
compensable if his being out is covered by
an office order or a locator slip or a pass for
official business.
5. DAL PRPOSE DOCTRINE F allows
compensation where a special trip would
have to be made for the employer if the
employee had not combined the service for
the employer with his own going or coming
trip.
9. SPECIAL ENGAGEMENT RLE F covers
field trips, outings, intramurals and picnics
when initiated or sanctioned by the employer
(. POSITIONAL AND LOCAL RISKS
DOCTRINE F If an employee by reason of
his duties is e!posed to a special or peculiar
danger from the elements, that is, one
greater than that to which other persons in
the community are e!posed and an
une!pected injury occurs, the injury is
compensable
?. FORCE MA?ERE OR AN ACT OF GOD -
when one in the course of his employment is
reasonably reuired to be at a particular
place at a particular time and there meets an
accident although one which any other
person then and there present would have
met irrespective of his employment.
CHAPTER II
COVERAGE AND LIABILITY
ART 19E. COMPLSORY COVERAGE
- 2C$ applies to all employers, public or
private, and to all employees, public or
private including casual, emergency,
temporary, or substitute employees.
- 2very employee is covered who is not over
9> years over 9> years of age or over 9>
years of age if he had been paying
contributions prior to the age of 9>
ART 17I. EFFECTIVE DATE OF
COVERAGE
- "he employer is covered compulsorily from
first day of operation and the employee from
the first day of employment
ART 172. LIMITATIONS OF LIABILITY
- NO COMPENSATION can be obtained if the
injury, death or disability is * (')-/% ,$ %&'
'50/,4''A)=
&. Into!icationB
/. 6illful intention to injure or kill himself or
anotherB
1. %otorious negligenceB or
). 7nless otherwise provided by the $C
NOTORIOS NEGLIGENCE Fdeliberate act
of the employee to disregard his own personal
safety.
Is %e"th tho+!h s+$'$%e 'ompe)s"#le *
As a rule %.. 8owever as held in NAESS
2). NLRC, the supreme court ruled that a self
inflicted death could be compensable if =
&. by agreement of the parties
/. "he suicideGdeath is caused by a work
related or compensable illness or
disease.
ART 17". E=TENT OF LIABILITY
- Si5-/%*n',-) ('3,2'(4 under the $abor
Code and the Civil Code 3*nn,% .' 5*+'.
"he action is selective and the employee
may either choose to $i/' %&' 3/*i5 -n+'(
'i%&'(. 0ut once the election is made, the
claimant cannot opt for the other remedy.
- 4imultaneous recovery -n+'( %&' LC *n+
%&' SSS 3*n .' 5*+' as per an *+2i),(4
,0ini,n +*%'+ M*4 2"; 1BEB ,$ S'3. D(i/,n
)in3' PD 1B21 &*) /i$%'+ %&' .*n ,n
)i5-/%*n',-) ('3,2'(4.
STATE INSRANCE FND= all covered
employers are reuired to remit to a common
fund a monthly contribution euivalent to one
percent of the monthly salary credit of every
covered employee. "he employee pays no
contribution to the fund. Any agreement to the
contrary is prohibited.
CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES!
TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not e!ceeding &/> days
PERMANENT TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period e!ceeding &/> days
PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
permanent partial loss of the use of any part of
his body.
DEATH BENEFITS
- "he 4ystem shall pay to the primary
beneficiaries upon the death of the covered
employee an amount eual to his monthly
income benefit, plus ten percent thereof for
each dependent child, but not e!ceeding
five, beginning with the youngest and
without substitution. "he income benefit
shall be guaranteed for five years.
DEPENDENTS!
&. the legitimate, legitimated, legally adopted or
acknowledged natural child who is
unmarried, not gainfully employed and not
over /& years of age or over /& years of
age provided that he is incapable of self-
support due to a physical or mental defect
which is congenital or acuired during
minority
/. legitimate spouse living with the employee
1. the parents of said employee wholly
dependent upon him for regular support
BENEFITS
&. for life to the primary beneficiaries,
guaranteed for five years
/. for not more than 9> months to the
secondary beneficiaries in case there are no
primary beneficiaries
1. in no case shall the total benefit be less that
3 &5, >>>.>>
THE BENEFICIARIES ARE=
PRIMARY BENEFICIARIES
a. ;ependent spouse until he remarries
b. dependent children * legitimate, legitimated,
natural born or legally adopted,
SECONDARY BENEFICIARIES
a. Illegitimate children and legitimate
descendants
b. parents, grandparents, grandchildren
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
ART 211. DECLARATION OF POLICY
LABOR RELATIONS LAW - Concerned with
the stabili#ation of relations of employer
and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor disputes through conciliation,
mediation and arbitration.
- Absent an employer-employee relation,
there is no labor relations to speak of.
PARTIES TO LABOR RELATIONS
CASES!
&. "he employeeAs organi#ation,
/. management, and
1. the public
- "he public is always to be considered in
disputes between labor and capital, and it
ahas been held that the (i6&%) ,$ %&'
6'n'(*/ 0-./i3 *(' 0*(*5,-n%.
- L*.,( ('/*%i,n) 0,/i34 -n+'( %&' LC i)
'5.,+i'+ in S'3%i,n " A(%i3/' =III ,$ %&'
1BE7 Constitution which guarantees to all
workers their right among others to self-
organi#ation, collective bargaining and
negotiations, peaceful land concerted
activities including the right to strike in
accordance with law, and to participate in
policy and decision making processes
affecting their rights and benefits as may be
provided by law.
ART. 212. DEFINITIONS
LABOR DISPTE INCLDES!
&. any controversy or matter concerning terms
or conditions of employment or
/. the association or representation of persons
in negotiating, fi!ing, maintaining, charging
or arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the pro!imate relation of
employer and employee.
EMPLOYEE- shall not be limited to the
employees of a particular employer.
- i% )&*// in3/-+' *n4 in+i2i+-*/ 1&,)'
1,(: &*) 3'*)'+! *) * (')-/% ,$ ,( in
3,nn'3%i,n 1i%& *n4 3-(('n% /*.,(
+i)0-%'D ,( .'3*-)' ,$ -n$*i( /*.,(
0(*3%i3'
- I$ &' &*) n,% ,.%*in'+ *n4 ,%&'(!
1. 4ubstantially euivalent *n+
/. 3ermanent employment
MANAGERIAL EMPLOYEE - is one who is
vested with powers or prerogatives to lay down
and e!ecute management policies and Gor to
hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees.
SPERVISORY EMPLOYEES F are those
who, in the interest of the employer, effectively
recommend such managerial actions if the
e!ercise of such authority is not merely routinary
or clerical in nature but reuires the use of
independent judgment.
WORKERAS ASSOCIATION - any
association of workers organi#ed for the mutual
aid and protection of its members or for any
legitimate purpose other than collective
bargaining.
INDEPENDENT NION - any labor
organi#ation operating at the enterprise level
whose legal personality is derived through an
independent action for registration prescribed
under Art. /1). It may be affiliated with a
federation, national or industry union, in which
case it may also be referred to as an affiliate.
%A"I.%A$ NION<FEDERATION - any labor
organi#ation with at least &> localsGchapters or
affiliates each of which must be a dully certified
or recogni#ed collective bargaining agent.
LEGITIMATE WORKERAS ASSOCIATION F
any workers association as defined herein
which is duly registered with the ;epartment of
$abor.
LABOR ORGANI>ATIONS - Any union or
association of employees which e!ists in
whole or in part for the purpose of collective
bargaining or of dealing with employees
concerning terms and conditions of
employment.
PRPOSES OF LABOR
ORGANI>ATIONS!
&. for collective bargainingB and
/. for mutual aid and protection.
TYPES OF LABOR DISPTES
&. $abor 4tandards ;isputes =
a, compensation *underpayment of minimum
wage,
b, benefits * nonpayment of holiday pay,
overtime pay,
c, working conditions * unrectified working
ha#ards,
/. $abor -elations ;isputes
a, organi#ational right disputeGunfair labor
practice *coercion, restraint or interference
in unioni#ation efforts,
b, representation disputes
c, bargaining disputes * refusal to bargain ,
d, contract administration or personnel policy
disputes *noncompliance with C0A
provisions,
e, employment tenure disputes
f, * non regulari#ation of employees,
PARTIES TO A DISPTE!
&. 3rimary 3arties F employer, employees,
union
/. 4econdary 3arties F voluntary arbitrator,
agencies of ;.$2 *0$-, %$-C, <AC, 4ec.
.f $abor, .ffice of the 3resident,
CONSLTATION ON POLICIES OF
MANAGEMENT AND OF THE EMPLOYER
- 6hat is needed is only consultation or
participation. "he employees need not
agree.
&. the last say is still with the management
/. it is still the management prerogative that
prevails
- If there is n, /*.,( -ni,n, then
3,n)-/%*%i,n should be made with the labor
management council.
- If the employees were n,% 6i2'n %&' (i6&% %,
0*(%i3i0*%', then they could $i/' 1i%& %&' NLRC
* 6(i'2*n3'.
TITLE II
NATIONAL LABOR RELATIONS
COMMISSION
CHAPTER I
CREATION AND COMPOSITION
ART. 21". NATIONAL LABOR
RELATIONS COMMISSION
TRIPARTISM
- Dive *5, divisions of %$-C.
- "hree *1, sectors are represented in the
composition of the %$-C.
- each division *1 commissioners, will
have representative from the
following =
&. Choice of the 4ec. .f $abor coming
from the public sector
/. labor
1. employer and management sector
FALIFICATIONS OF THE CHAIRMAN
AND THE COMMISSIONER
&. must be a member of the 3hilippine 0arB
/. must have been engaged in the practice of
law in the 3hilippines for at least &5 yearsB
1. must have e!perience or e!posure in
handling labor management relations for at
least &5 yearsB and
). preferably a resident of the region where he
is to hold office.
- "he Chairman and Commissioners of the
%$-C are not subject to confirmation by the
Commission on Appointments
THE FALIFICATIONS OF E=ECTIVE
LABOR ARBITERS
&. must be members of the 3hilippine 0arB
/. must have been engaged in the practice of
law in the 3hilippines for at least ( yearsB
1. must have e!perience or e!posure in
handling labor management relations for at
least 1 years.
TERM OF OFFICE OF THE CHAIRMAN;
COMMISIONERS; AND LABOR
ARBITERS!
- until they reach the age of 95 unless
removed for causes as provided by law or
become incapacitated to discharge the
function of his office.
CASES WERE THE NLRC HAVE
E=CLSIVE AND ORIGINAL
?RISDICTION!
&. Cases certified to it for compulsory
arbitration by the 4ecretary of $abor under
Art. /91B
/. Injunction cases under Art. /&? and /9)B
and
1. Contempt cases.
CASES WERE THE NLRC HAS
APPELLATE ?RISDICTION!
&. Cases decided by labor arbiters under
Art /&(b and 4ec &> -A ?>&/*+igrant
6orkers Act,
/. Cases decided by the -egional .ffices
of ;.$2 in the e!ercise of its
adjudicatory function under Art &/' of
the $abor Code
THE NLRC ONLY SITS EN BANC FOR
PRPOSES OF!
&. promulgating rules and regulation
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and
/. formulating policies affecting its
administration and operations.
- "he Commission may only sit en banc for
the +'%'(5in*%i,n ,$ 0,/i3i') *n+ NOT $,(
0-(0,)') ,$ *+H-+i3*%i,n.
- P'%i%i,n) $,( 3'(%i,(*(i *6*in)% +'3i)i,n)
,$ %&' NLRC )&,-/+ &'n3'$,(%& .'
ini%i*//4 $i/'+ 1i%& %&' C,-(% ,$ A00'*/) in
strict observance of the doctrine on the
hierarchy of courts as the appropriate forum
for the relief desired. "he 4C noted that the
CA is procedurally euipped to resolve
unclear or ambiguous factual finding, aside
from the increased number of its component
divisions. *S%. M*(%in F-n'(*/ H,5') 2).
NLRC G.R. N,. 1"IE99)
- Dindings of facts of a labor tribunal are
accorded the utmost respect by the courts
and are well-nigh conclusive if supported by
substantial evidence.
- $abor cases are n,% )-.H'3% %, B*(*n6*4
C,n3i/i*%i,n since ordinary rules on
procedure are merely suppletory in
character vis-a- vis labor disputes which are
primarily governed by labor laws.
- "he failure of the petitioner to file a motion
for reconsideration of the decision of %$-C
before filing a petition for certiorari has in
certain instances been held not to be a fatal
omission.
CHAPTER II
POWERS AND DTIES
ART 217. ?RISDICTION OF LABOR
ARBITERS AND THE COMMISSION.
a. E73'0% as otherwise provided under this
Code the L*.,( A(.i%'() shall have ,(i6in*/
*n+ '73/-)i2' jurisdiction to hear and
decide, within 1> calendar days after the
submission of the case by the parties for
decision without e!tension, even in the
absence of stenographic notes, the following
cases involving *// 1,(:'(); 1&'%&'(
*6(i3-/%-(*/ ,( n,n-*6(i3-/%-(*/!

&, 7nfair labor practice casesB
/. "ermination disputesB
1. If accompanied with a claim for
reinstatement, those cases that
workers may file involving wages,
rates of pay, hours of work and
other terms and conditions of
employmentB
). Claims for actual, moral,
e!emplary and other forms of
damages arising from employer-
employee relationsB
5. Cases arising from any violation
of Art /9) of this Code, including
uestions involving the legality of
strikes and lockoutsB and
9. 2!cept claims for 2mployees
Compensation, 4ocial 4ecurity,
+edicare and maternity benefits,
all other claims arising from
employer-employee relations,
including those of persons in
domestic or household service,
involving an amount e!ceeding
35,>>>.>> regardless of whether
accompanies with a claim for
reinstatement.
(.+onetary claims of overseas
contract workers under the
+igrant 6orkers Act of &''5.
b. "he C,55i))i,n shall have '73/-)i2'
*00'//*%' H-(i)+i3%i,n over all cases
decided by $abor Arbiters.
c. Cases arising from the in%'(0('%*%i,n ,(
i50/'5'n%*%i,n ,$ CBA *n+ %&,)' *(i)in6
$(,5 %&' in%'(0('%*%i,n ,( 'n$,(3'5'n% ,$
3,50*n4 0'(),nn'/ 0,/i3i') shall be
disposed of by the $abor Arbiter by referring
the same to the 6(i'2*n3' 5*3&in'(4 *n+
2,/-n%*(4 *(.i%(*%i,n.
- "he labor arbiter has jurisdiction over the
claims of employees against @.CCs if the
latter does not have an original charter and
has been incorporated under the
Corporation Code.
- "he labor arbiter and the %$-C have no
jurisdiction over claims filed by employees
against international agencies such as I--I,
68. etc.
ART 21E. POWERS OF THE
COMMISSION
POWERS OF THE NLRC!
a. -ule-making power
b. 3ower to issue compulsory
processes
c. 3ower to investigate matters
and hear disputes within its
jurisdiction
d. Contempt power
e. 3ower to issue injunctions and
-estraining .rders
REFISITES BEFORE RESTRAINING
ORDER< IN?NCTION MAY ISSE!
&. filing of a verified petition
/. a hearing after due and personal notice has
been served in such manner as the
Commission shall direct, to all known
persons against whom the relief is sought
and also to the Chief 2!ecutive or other
public officials of the province or city within
which the unlawful acts have been
threatened or committed charged with the
duty to protect the complainantAs property
1. reception at the hearing of the testimony of
witnesses with opportunity for cross-
e!amination, in support of the allegations of
the complaint made under oath as well as
testimony in opposition thereto
). a finding of fact of the Commission to the
effect that =
a, prohibited or unlawful
acts have been threatened and will be
committed and will be continued unless
restrained, but no injunction or
temporary restraining order shall be
issued on account of any threat,
prohibited, or unlawful act, e!cept
against the persons, association or
organi#ation making the threat or
committing the prohibited or unlawful
act or actually authori#ing or ratifying the
same after actual knowledge thereof.
b, "hat substantial and
irreparable injury to the complainantAs
property will follow
c, "hat as to each item of
relief to be granted, greater injury will be
inflicted upon complainant by the denial
of the relief than will be inflicted upon
the defendants by the granting of the
relief
d, "hat complainants has
no adeuate remedy at law
e, "hat public officers
charged with the duty to protect
complainantAs property are unable or
unwilling to furnish adeuate protection.
5. 3osting of a bond
REFISITES BEFORE TRO MAY BE
ISSED E= PARTE!
&. "he complainant shall allege that, unless a
"-. shall be issued without notice, a
substantial and irreparable injury to
complaintAs property will be unavoidableB
/. "here is testimony under oath, sufficient, is
sustained, to justify the Commission in
issuing a temporary injunction upon hearing
after notice B
1. "he complainant shall first file an
undertaking with adeuate security in an
amount to be fi!ed by the Commission
sufficient to recompense those enjoined for
any loss, e!penses or damage caused by
the improvident or erroneous issuance of
such order or injunction, including all
reasonable costs, together with a
reasonable attorneyAs fee, and e!pense of
defense against the granting of any
injunctive relief sought in the same
proceeding and subseuently denied by the
CommissionB and
). "he "-. shall be effective no longer than
/> days and shall become void at the
e!piration of said /> days counted from the
date of the posting of the bond.
- In the absence of service of summons or a
valid waiver thereof, the hearings and
judgment rendered by the labor arbiter are
null and void.
- "he procedural and substantial
reuirements of Art /&? *e, must be strictly
complied with before an injunction may
issue in a labor dispute.
THE FF. CAN ISSE IN?NCTIONS<
TRO IN LABOR DISPTES
&. 3resident *A-". /91, g,
/. 4ecretary of $abor *A-". /91, g,
1. $abor Arbiters *A-". /&(,
). %$-C
5. -egional ;irectors
9. +ed- Arbiters
A(% 21B. OCLAR INSPECTION
"he Chairman, any Commissioner, labor Arbiter
or their duly authori#ed representatives may, at
anytime during working hours=
a. Conduct an ocular inspection on
any establishment, building,
ship, place or premises,
including any work, material,
implement, machinery,
appliance or any object thereinB
and
b. Ask any employee. $aborer, or
any person as the case may be
for any information or date
concerning any matter or
uestion relative to the object of
the investigation
ART. 221. TECHNICAL RLES NOT
BINDING AND PRIOR RESORT TO
AMICABLE SETTLEMENT
- An *5i3*./' )'%%/'5'n% ,$ * /*.,( +i)0-%'
should be *00(,2'+ .4 %&' /*.,( *(.i%'(
.'$,(' 1&,5 %&' 3*)' i) 0'n+in6 after
being satisfied that it was voluntarily entered
by the parties and after having e!plained to
them the terms and conseuences thereof.
PRPOSE! for the employeeAs protection for the
labor arbiter before whom the case is pending
would be in a better position than just any labor
arbiter to personally determine the voluntariness
of the agreement and certify its validity.
RES ?DICATA applies only to judicial or
uasi-judicial proceedings and not to the
e!ercise of administrative powers.
ART 222. APPEARANCES AND FEES
APPEARANCE OF NON-LAWYERS
BEFORE THE COMMISSION!
GENERAL RLE : .%$E lawyers can
appear before the %$-C, or any $abor Arbiter,
E=CEPTIONS ! %on-$awyers can appear .%$E
in the following instances=
&. if they represent themselvesB or
/. if they represent their organi#ation
or members thereofB or
1. if he is a duly-accredited member of
the legal aid office duly recogni#ed
by the ;.I of I03 in cases referred
thereto by the latter.
ATTORNEYAS FEES! "he ma!imum amount to
be given a lawyer is &>J of the monetary
benefits awarded to the employees e!cluding
the award for moral and e!emplary damages
shall not be included.
- +oral and e!emplary damages and other
benefits that employee receives when he is
working are e!cluded.
- "his article prohibits the payment of
attorneyAs fees only where the same is
effected through forced contributions from
the workers form their own funds as
distinguished from the union funds.
CHAPTER III
APPEAL
ART. 22". APPEAL
GRONDS FOR APPEAL!
&. If there is prima facie evidence of abuse of
discretion on the part of the $abor Arbiter or
Compulsory ArbitratorB
/. If the decision, order or award was secured
through fraud or coercion, including graft
and corruptionB
1. If made purely on uestions of lawB
). If serious errors in the findings of facts are
raised which would cause grave or
irreparable damage or injury to the
appellant.
PERIODS WITHIN WHICH TO APPEAL!
A. DECISIONS OF THE REGIONAL
DIRECTOR!
- within 5 calendar days from receipt of the
order.
B. DECISIONS OF THE LABOR ARBITER!
- within &> calendar days from the receipt of
the decision.
- "he appeal must be under oath and must
state specifically the grounds relied upon
and the supporting arguments.
- 6here the &>
th
day falls on a 4aturday,
4unday or legal holiday, the appeal may be
filed on the ne!t business day.
IS THE PERIOD OF APPEAL
E=TENDIBLEM
NO. "he period of appeal to cases
decided by the regional ;irector and the $abor
Arbiter is %2<2- e!tendible. It is the policy of
the state to settle e!peditiously labor disputes.
REFISITES BEFORE APPEAL TO
THE NLRC IS DEEMED PERFECTED!
&. Dile a verified memo of appeal within the
reuired period of appealB
/. In case of monetary award, the employer
should file a bond corresponding to the
monetary award e!cluding awards for moral,
e!emplary damages and attorneyAs fees.
1. Appeal fee of 3&&>B
). Durnish the other party with a copy of the
memo of appeal *proof of service,.
- 6here the employer failed to post a bond to
perfect its appeal, the remedy of the
employee is not a petition for mandamus by
a motion to dismiss appeal.
- "he intention of the lawmakers is to make
the bond an indispensable reuisite for the
perfection of an appeal by the employer.
- "ardiness of an appeal form the decision of
the labor arbiter may be considered as a
mere procedural lapse.
E=ECTION PENDING APPEAL!
- the decision of the labor arbiter ordering the
reinstatement of a dismissed or separated
employee shall immediately e!ecutory
insofar as the reinstatement aspect is
concerned and the posting of an appeal
bond by the employer shall not stay such
e!ecution. "here is no need for the arbiter to
issue a writ of e!ecution on the
reinstatement order as it is self-e!ecutory
*3ioneer "e!turi#ing Case,.
OPTIONS OF THE EMPLOYER TO IN
COMPLYING WITH AN ORDER OF
REINSTATEMENT WHICH IS
IMMEDIATELY E=ECTORY!
&. 8e can admit the dismissed employee back
to work under the same terms and
conditions prevailing prior to his dismissal or
separation or to a substantially euivalent
position if the former position is already filled
up.
/. 8e can reinstate the employee merely in the
payroll.

- Dailing to e!ercise any option may be
compelled under pain of contempt and the
employer may be made to pay instead the
salary of the employee.
A 0'%i%i,n $,( ('/i'$ $(,5 %&' +'3i)i,n
,$ %&' /*.,( *(.i%'( 5-)% )%(i3%/4 3,50/4
1i%& 2 ('6/'5'n%*(4 0'(i,+)!
&. "he petition must be filed within 9> days
from knowledge of the judgmentB and
/. 6ithin a fi!ed period of 9 months from entry
of such judgment.
- petitions filed beyond said period will
no longer be entertained.
APPEAL FROM THE DECISION OF
THE NLRC!
- appeal by certiorari should be filed
with the Court of Appeals*4t. +artin
DuneralAs 8ome,
ART 22#. E=ECTION OF DECISIONS;
ORDER; OR AWARDS
- "he decision of the 4ecretary of $abor, the
Commission, the 0ureau or -egional
;irector the $abor Arbiter, the +ed-Arbiter
or the <oluntary Arbitrator shall be $in*/ *n+
'7'3-%,(4 *$%'( 1I 3*/'n+*( +*4) $(,5
('3'i0% %&'(',$ .4 %&' 0*(%i').
- "he foregoing may upon its own initiative or
on motion of any interested party, i))-' *
1(i% ,$ '7'3-%i,n ,n * H-+65'n% 1i%&in 8
4'*() $(,5 %&' +*%' i% .'3,5') $in*/ *n+
'7'3-%,(4.
- "he immediate e!ecution of judgment
should be undertaken only when the
monetary award had been carefully and
accurately determined by the %$-C and
only after the employer is given the
opportunity to be heard and to raise
objections to the computation.
TITLE III
BREA OF LABOR RELATIONS
ART. 229 BREA OF LABOR
RELATIONS
E=CLSIVE AND ORIGINAL
?RISDICTION OF THE BLR!
&. inter- union conflicts
/. intra- union conflicts
1. all disputes, grievances or problems arising
from or affecting labor- management
relations in all workplaces whether
agricultural or non- agricultural.
CASES WHERE THE BLR HAS NO
?RISDICTION!
- "hose arising from the implementation or
interpretation of collective bargaining
agreements which shall be subject of
grievance procedure andGor voluntary
arbitration.
INTRA- NION DISPTES - includes all
disputes or grievances arising from any
violation of or disagreement over any
provision of the constitution and by-laws
of a union.
- It also includes any violation of the rights
and conditions of union membership
provided for in the $abor Code.
INTER- NION DISPTES - refers to
uestions involving or arising out of a
representation disputes between or
among the different unions.
- It also includes all other conflicts which
legitimate labor, organi#ations may have
against each other based on any violation of
their rights as labor organi#ations.
DETERMINATION OF EMPLOYER-
EMPLOYEE RELATIONSHIP!
- since the 0$- has the original and e!clusive
jurisdiction to decide in"er alia, all disputes,
grievances or problems arising from or
affecting labor-management relations in all
workplaces. %ecessarily, in the e!ercise of
this jurisdiction over labor-management
relations, the +ed-Arbiter has the authority,
original and e!clusive, to determine the
e!istence of an employer-employee
relationship (MY S*n Bi)3-i%); In3. 2
L*6-')5* G.R. N,. B811; 22 A0(i/ 1BB1).
SPECIAL REFIREMENT AS TO THE
FILING OF CASES!
A. INVOLVING ENTIRE MEMBERSHIP
&. "he complaint must be signed
by at least 1>J of the entire
membership of the union.
/. It must also show e!haustion of
administrative remedies.
B. INVOLVING A MEMBER ONLY!
In such case only the affected
member may file the complaint.
RE ! I50,)i%i,n ,$ $'') .4 %&' -ni,n @
+,') i% *$$'3% %&' 'n%i(' 5'5.'()&i0M
YES. 4uch being the case, the
complaint should be signed by at least 1>J of
the membership of the union.
ADMINISTRATIVE FNCTIONS OF
THE BLR!
&. "he regulation of registration of the labor
unionsB
/. "he keeping of a registry of labor unionsB
and
1. "he maintenance of a file of C0As.
NATIONAL CONCILIATION AND
MEDIATION BOARD!
- has absorbed the conciliation, mediation and
voluntary arbitration functions of the 0$-
*2... &/9,
ART. 227. COMPROMISE
AGREEMENTS
REFIREMENTS OF A VALID
FITCLAIM!
&. "he uitclaim must be voluntarily arrived at
by the partiesB
/. It must be with the assistance of the 0ureau
of $abor 4tandards, 0ureau of $abor
-elations of any representative of the
;.$2B and
1. "he consideration must be reasonable.
- if the compromise agreement was entered
into 1i%&,-% %&' *))i)%*n3' ,$ DOLE, it is
valid and binding between the parties but
the parties can still go to the %$-C and
repudiate the agreement.
- if the compromise agreement was entered
into 1i%& %&' *))i)%*n3' ,$ DOLE, it shall
be final and binding between the parties,
E=CEPT=

a. in case of non compliance with
the compromise agreementB or
b. if there is prima facie evidence
that the settlement was obtained
through fraud,
misrepresentation, or coercion
- in such cases, the %$-C of the courts can
assume jurisdiction.
ART 2"1. REGISTRY OF NIONS AND
FILE OF COLLECTIVE AGREEMENT
- "he C0A is more than a contract, it is highly
impressed with public interest for it is an
essential instrument to promote industrial
peace.
- An -n('6i)%'('+ CBA does not bar
certification election.
ART 2"". PRIVILEGE
COMMNICATIONS
- Information and statements made at
conciliation proceedings shall be treated as
privileged communication and shall n,% .'
-)'+ *) '2i+'n3' in the Commission.
- Conciliators and similar officials shall not
testify in any court or body regarding any
matters taken up at conciliation proceedings
conducted by them.
TITLE IV
LABOR ORGANI>ATIONS
CHAPTER I
REGISTRATION AND
CANCELLATION
ART. 2"#. REFIREMENT OF
REGISTRATION
LABOR ORGANI>ATION- A labor
organi#ation is any union or association of
employees which e!ists in whole or in part
for the purpose =
- of collective bargaining or
- of dealing with employers concerning the
terms and conditions of employment.
PRPOSE OF FORMATION OF LABOR
NIONS! for securing a fair and just wages and
good working conditions for the laborersB and for
the protection of labor against the unjust
e!actions of capital
REFIREMENTS BEFORE A LABOR
ORGANI>ATION CAN BE REGISTERED
WITH THE BREA OF LABOR
RELATIONS!
&. 6ritten application verified by the
4ecretaryG"reasurer, attested to by the
3residentB
/. %ames of members comprising at least />J
of the employees in the bargaining unit
where it seeks to operateB
1. %on-e!istence of C0A, otherwise, if one
e!ist, state in the application that it is filed
within the freedom period. It shall be
accompanied by the following attachments =
a. -egistration fee in the amount of
35>.>>B
b. %ames of the officers and their
addressesB
c. +inutes of the organi#ational meetingsB
d. $ist of workers who participated in the
organi#ational meetingsB
e. %ames of all the members and the
number of employees in the bargaining
unitB
f. Annual Dinancial -eport * if the applicant
has been in the e!istence for at least
one year,B
g. Dour *), copies of the constitution and
by-lawsB
h. +inutes of the resolution of the
constitution and by-laws and the list of
members who participated in the
bargaining unit concernedB and
i. If there is an e!isting collective
bargaining agreement duly submitted to
the ;.$2, a sworn statement that the
application for registration is filed during
the last 9> days of the agreement.
MANDAMS is the proper remedy for the
unjustified refusal of the 0ureau in approving the
application and the corresponding issuance of a
certificate of registration, it being a ministerial
duty.
REASON FOR REFIREMENT OF
REGISTRATION F it is a condition sine ua non
for the acuisition of legal personality by labor
organi#ations, associations or unions, and the
possession or the rights and privileges granted
by law to legitimate labor organi#ations
FEDERATION is an association of national
unions.
REFIREMENTS BEFORE A
FEDERATION CAN BE ISSED A
CERTIFICATE OF REGISTRATION!
Aside from the application, which must be
accompanied with the reuirements for
registration of a labor registration, the application
should also be accompanied by the following=
&. 3roof of affiliation of at least &>
locals or chapters, each of which
must be =
a. a duly recogni#ed collective
bargaining agent in the
establishment of
b. supporting the registration
of such applicant federation
or national unionB
/. "he names and addresses of the
companies where the locals or
chapters operate and the list of all
the members in each company
involved.
C") " lo'"l +)$o) "..$l$"te ($th "
.e%e"t$o)* I. so, ho(*
YES. "he procedure of affiliation would
depend on whether the union is individually
registered or not.
I$ %&' -ni,n i) in+'0'n+'n%/4 ('6i)%'('+; the
affiliation is by signing a contract of affiliation
with the labor union and the registration of such
contract with the 0$-.
On %&' ,%&'( &*n+; i$ %&' -ni,n I) n,%
in+'0'n+'n%/4 ('6i)%'('+; affiliation is done by
the application of the union with the federation
so it may be issued a charter certificate, to be
submitted with the 0$-, including the following=
&. Copies of its constitution and
by-laws
/. 4tatement of the set of officers
and books of accounts, all of which must
be certified by the 4ecretaryG"reasurer
and attested to by the 3resident.
C") " +)$o) o. s+pe,$soy
employees "..$l$"te ($th " )"t$o)"l
.e%e"t$o) o. l"#o o!")$/"t$o)s o. ")0
")% .$le employees *
YES, provided that=
a. "he federation is not actively
involved in union affairs in the
company and
b. "he rank and file employees are not
directly under the control of the
supervisors
EFFECTS WHEN A LOCAL NION
DISAFFILIATE!
IT DEPENDS. If the labor union is
in+'0'n+'n%/4 ('6i)%'('+, the disaffiliation of
the union would not affect its being a legitimate
labor organi#ation and therefor would continue
to have the rights and privileges of a legitimate
labor organi#ation as well as the legal
personality as such.
.n the other hand, if the labor union is
n,% in+'0'n+'n%/4 ('6i)%'('+, upon
disaffiliation, it would cease to be a legitimate
labor organi#ation and would therefore no longer
have the legal personality and the rights and
privileges granted by law to legitimate
organi#ation.
EFFECT OF DISAFFILIATION WITH
E=ISTING CBA)!
IT DEPENDS. If the labor union is
independently registered, e!isting C0As would
continue to be valid as the labor organi#ation
can continue administering the C0As.
8owever, if the labor union is not
independently registered, e!isting C0As would
no longer be valid as there would no longer be
any labor organi#ation given by law the right to
administer the C0As.
ENTITLEMENT TO NION DES IN
CASE OF DISAFFILIATION!
- If the labor union is independently
registered, then the labor organi#ation is
entitled to the union dues and not the
federation from which the labor organi#ation
disaffiliated.
- .n the other hand, if the labor union is not
independently registered, then union dues
may no longer be collected as there would
no longer any labor union who is allowed to
collect such union dues from the employees.
- A union can affiliate anytime but disaffiliation
can be done only during the freedom period.
If not within the freedom period, can be done
only with the consent of the majority of the
workers. 3rovided it is independently
registered otherwise it loses its personality.
"he e!ception will only apply if it is not
prohibited by the constitution and by-laws of
the federation of national union.
ART 2"9. DENIAL OF REGISTRATIOND
APPEAL
;ecisions of the 0$- denying the registration
of a labor organi#ation is appealable to the
4ecretary of $abor within &> calendar days from
receipt, on grounds of=
a. grave abuse of discretionB and
b. gross incompetence
ART 2"E. CANCELLATION OF
REGISTRATIOND APPEAL
"he certificate of registration of any legitimate
labor organi#ation shall be cancelled by the 0$-
if it has reason to believe, *$%'( +-' &'*(in6,
that the said labor organi#ation no longer meets
one or more of the reuirements herein
prescribed.
- A00'*/ may be filed within &5 days from
receipt of the decision to the 4ecretary of
$abor.
ART 2"B. GRONDS FOR
CANCELLATION OF NION
REGISTRATION.
GRONDS FOR CANCELLATION OF
NION REGISTRATION!
&. +isrepresentation, Dalse statement or Draud
in connection with=
- the adoption or ratification of the
constitution and by-laws or
amendments thereto,
- the minutes of ratification, and
- the list of members who took part in
the ratification.
/. Dailure to submit the document mentioned in
the preceding paragraph
- within 1> days from adoption or
ratification of the constitution and
by-laws or amendments thereto.
1. +isrepresentation, false statement or fraud
in connection with the=
- election of officers,
- minutes of the election of officer and
the list of voters, or failure to submit
these documents together with
- the list of the newly
electedGappointed officers and their
postal addresses
- within 1> days from election
). Dailure to submit the annual financial report
to the 0ureau
- within 1> days after the closing of
every fiscal year and
misrepresentation, false entries and
fraud
- in the preparation of the financial
report itselfB
5. Acting as a labor contractor or engaging in
the NcaboH system, or otherwise engaging in
any activity prohibited by lawB
9. 2ntering into collective bargaining
agreements which provide terms and
conditions of employment below minimum
standard established by lawB
(. Asking for or accepting attorneyAs fees or
negotiation fees from the employersB
?. .ther than for mandatory activities under
this Code, checking off special assessment
or any other fees without duly signed
individual written authori#ation of the
membersB
'. Dailure to submit a list of individual members
of the 0ureau once a year or whenever
reuired by the 0ureauB and
&>. Dailure to comply with the reuirements
under Articles /1( and /1?.
REMEDY IN CASE THE BREA
SHOLD CANCEL THE REGISTRATION
OF THE NION!
- to appeal to the 4ecretary of $abor within &>
calendar days on the grounds of=
&. grave abuse of discretion or
/. gross incompetence on the part of
the 0ureau
- 4hould the office of the 4ecretary affirm the
decision of the 0ureau, the $in*/ ('5'+4 i)
* 0'%i%i,n $,( 3'(%i,(*(i %, %&' SC -n+'(
R-/' 98; R-/') ,$ C,-(%.
CHAPTER II
RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANI>ATION
ART. 2#1. RIGHTS AND CONDITIONS
OF MEMBERSHIP IN A
LABOR ORGANI>ATION
REFIREMENTS IN MAKING SPECIAL
ASSESSMENT
A(%. 2#1(n). %o special assessment or other
e!traordinary fees may be levied upon the
members of a labor organi#ation=
- 7%$244 authori#ed by a written resolution
of a majority of all the members at a general
membership meetings duly called for the
purpose.
- "he secretary of the organi#ation shall
record the minutes of the meeting including=
- the list of all members present,
- the votes cast,
- the purpose of the assessment or fees,
- "he record shall be attested by the
3resident.
- "herefore, the REFIREMENTS when it
comes to special assessment are as follows=
&. there must be a written resolution
/. the resolution must have been approved by
a majority of all the members
1. the approval must be at a general
membership meeting duly called for the
purpose
REFIREMENTS OF THE LAW WITH
REGARDS TO CHECK-OFFS
A(%. 2#1(,). O%&'( %&*n $,(
MANDATORY ACTIVITIES -n+'( %&'
C,+'.
- %. special assessment, attorneyAs fees,
registration fees or any other e!traordinary
fees may be checked off from any amount
due an employee.
- 6I"8.7" an individual written authori#ation
duly signed by the employee.
"he authori#ation should specifically state
the=
a. amount
b. purpose and
c. beneficiary of the deduction.
E=CEPTION %, %&' R'J-i('5'n% ,$
In+i2i+-*/ W(i%%'n A-%&,(iG*%i,n!
- "he law does not reuire individual written
authori#ations from the employees when it
comes to fees for mandatory activities under
the $abor Code.
CHECK-OFF is a method of deducting from
an employeeAs pay at prescribed period, the
amounts due to the union for fees, fines or
assessment.
In S0'3i*/ A))'))5'n%, there must be a written
resolution authori#ed by a majority of the
members at a general meeting called for the
purpose.
- Check-off F there must be individual written
authori#ation of the members.
PERSONS WHO ARE PROHIBITED
FROM BECOMING MEMBERS OF A
LABOR ORGANI>ATION NDER THE
LABOR CODE!
&. "hose who have been convicted of a crime
involving moral turpitude. *Art. /)&*f,,B
/. 4ubversives or those engaged in subversive
Activities.
- In general, a union is free to select its own
members, and no person has an absolute
right to membership in a trade union.
- "he implementing rules reuire that the
remedies be e!hausted within the union
before a complaint for any violation of the
unionAs constitution and by-laws may be
filed.
REFIREMENTS BEFORE A CHECK-
OFF MAY BE DONE!
- Individual written authori#ations of the
employees are reuired before a check-off
may be validly done.
E=CEPTIONS !
&. Dor mandatory activities
provided under the CodeB and
/. 6hen non-members of the
union avail of the benefits of the C0A.
- said non-members may be
assessed union dues euivalent to
that paid by members
- only by a 0oard -esolution
approved by majority of the
members in a general meeting
called for the purpose
NATRE AND PRPOSE OF CHECK-OFF
- to facilitate the collection of dues necessary
for the unionAs life and sustenance.
GENERAL GROPINGS OF THE
RIGHTS OF THE NION MEMBERS!
(n+'( A(%. 2#1)
1. P,/i%i3*/ (i6&% is the right of the members to
vote and be voted for, subject to lawful
provisions on ualifications and
disualifications.
2. D'/i.'(*%i2' *n+ D'3i)i,n-M*:in6 Ri6&% is
the members right to participate in
deliberations on major policy uestions and
decide them by secret ballot.
3. Ri6&%) O2'( M,n'4 M*%%'() is the right of
the members=
a. against e!cessive fees
b. against unauthori#ed collection of
contributions or unauthori#ed
disbursements
c. to reuire adeuate records of
income and e!penses
d. to access financial records
e. to vote on officers compensation
f. to vote on special assessment
g. to be deducted a special assessment
only with the memberAs written
authori#ation.
4. Ri6&% %, In$,(5*%i,n is the memberAs right
to be informed about=
a. the organi#ationAs constitution and
by- laws
b. the collective bargaining agreement
c. about labor laws
CHAPTER III
RIGHTS OF LEGITIMATE LABOR
ORGANI>ATIONS
ART. 2#2. RIGHTS OF LEGITIMATE
LABOR ORGANI>ATIONS
RIGHTS OF A LEGITIMATE LABOR
ORGANI>ATION!
&. 7ndertake activities for benefit of members
/. 4ue and be sued
1. 2!clusive representative of all employees
). -epresent union members
5. Durnished by employers of audited financial
statements
9. .wn properties
(. 2!empted from ta!es
EFFECT OF CANCELLATION OF
REGISTRATION IN THE CORSE OF
PROCEEDINGSD
- 6here a labor union is a party in a
proceeding and later it loses its registration
permit in the course or during the pendency
of the case, such union may continue still as
a party without need of substitution of
parties, subject however to the
understanding that whatever decision may
be rendered therein will only be binding
upon those members of the union who have
not signified their desire to withdraw from
the case before its trial and decision on the
merits.
TITLE V
COVERAGE
ART. 2#". COVERAGE AND
EMPLOYEEAS RIGHT TO
SELF @ORGANI>ATION
GOVERNMENT @
OWNED OR
CONTROLLED
CORPORATIONS
WITH A CHARTER
GOVERNMENT @
OWNED OR
CONTROLLED
CORPORATIONS
WITHOT
CHARTER
&. 2mployees cannot
stage strikes since
they are governed
by the Civil
4ervice $aw. "hey
are enjoined by
Civil 4ervice
+emorandum
Circular %o. 9,
under pain of
administrative
sanctions, from
staging strikes,
demonstrations,
mass leaves, walk-
outs and other
concerted
activities.
&."he @.CC is
created under
Corporation Code,
then employees are
covered by the
$abor Code.
"herefore the
employees have the
same rights as
those as employees
of private
corporations, one of
which is the right to
stage strikes.
/.Corporations with
original charters
cannot bargain with
the government
concerning the
terms and
conditions of their
employment.
/. "he @.CC is
created under
Corporation Code,
being governed by
the $abor Code, they
can bargain with the
government
concerning the terms
8owever, they can
negotiate with the
government on
those terms and
conditions of
employment which
are not fi!ed by law.
"hus, they have a
limited bargaining
rights.

and conditions of
their employment.
"hus, they have an
unlimited bargaining
rights.
1. Can only form,
join or assist
labor
organi#ation for
purposes not
contrary to law.
1. Can form, join or
Assisi labor
organi#ation for
purposes of C0A,
etc.
THE FOLLOWING ARE CONSIDERED
NEGOTIABLE IN GOCC WITH ORIGINAL
CHARTER!
&. schedule of vacation and other leaves
/. work assignment of pregnant women
1. personnel growth and development
). communication system F lateral and vertical
5. provision for protection and safely
9. provision for facilities for handicapped
personnel
(. provision for first-aid medical services for
married women
?. annual medicalGphysical e!amination
'. recreational, social, athletic and cultural
activities and facilities *-ules implementing
6. &?>,
THE FOLLOWING ARE CONSIDERED NOT
NEGOTIABLE !
&. "hose which reuire appropriation of
funds, such as =
a. increase in salary emoluments and
other allowance not presently
provided for by law
b. facilities reuiring capital outlays
c. car plan
d. provident fund
e. special hospitali#ation, medical and
dental services
f. riceGsugarGother subsidies
g. travel e!penses
h. increase in retirement benefits
/. "hose that involve the e!ercise of
management prerogatives, such as =
- appointments
- promotion
- assignmentsGdetails
- reclassificationGupgrading of position
- revision of compensation structure
- penalties imposed as a result of
disciplinary actions
- selections of personnel to attain
seminar, trainings. 4tudy grants
- distribution of work load
- e!ternal communication linkages
- @overnment employees and employees of
government-owned and controlled
corporations with original charters may
bargain, however, such .*(6*inin6 0,1'(
i) /i5i%'+.
RATIONALE ! GOCC)
INCORPORATED NDER THE CORP.
CODE ALLOWED TO ORGANI>E!
&. they are not involved in public service
/. terms of employment are not fi!ed by law
1. they are governed by the provisions of the
$abor Code not by the Civil 4ervice $aw
EMPLOYEES COVERED BY THE
RIGHT TO SELF- ORGANI>ATION!
&. Commercial
/. Industrial
1. Agricultural enterprises, including=
- charitable
- religious
- education or
- medical institution
EMPLOYEES WITH LIMITED RIGHT
TO SELF- ORGANI>ATION!
&. 4elf- employed
/. 6ithout definite employers
1. Ambulant
). Intermittent and Itinerant
5. -ural worker
- they have the right to self-organi#ation but
only for their mutual aid and protection.
EMPLOYEES WHO ARE NOT
GRANTED THE RIGHT TO SELF-
ORGANI>ATION!
&. +embers of the Armed Dorces of the
3hilippines, including police officers,
policemen, firemen and jail guardsB
/. 8igh-level employees
- whose functions are normally
considered as policy-making or
managerial
- whose duties are of a highly
confidential or highly technical in nature
* 2. &?>, sections 1-),
1. @overnment employees occupying high
positions
). 2mployees of international organi#ations
with immunities
5. Confidential employees
9. Cooperative members who are also
employees
- F,('i6n'() 2*/i+/4 1,(:in6 in %&'
P&i/i00in') 3*n $,(5 /*.,( ,(6*niG*%i,n),
provided, the same right to form, join or
assist in the formation of labor unions is also
given to Dilipinos in their country of origin.
"his '5.,+i') %&' 0(in3i0/' ,$
('3i0(,3i%4.
E7%'n% ,$ %&' Ri6&% %, S'/$-
O(6*niG*%i,n
a. "o form, join and assist labor organi#ations
- for the purpose of collective bargaining
through representatives of their own choosing
and
b. "o engage in lawful concerted activitiesfor the
- same purpose
- for their mutual aid and protection
ART 2#8. INELIGIBILITY OF
MANAGERIAL EMPLOYEES TO ?OIN
ANY LABOR ORGANI>ATIOND RIGHT OF
SPERVISORY EMPLOYEES.
R'*),n $,( in'/i6i.i/i%4 F in the collective
bargaining process, managerial employees are
supposed to be on the side of the employer, to
act as its representatives, and to see to it that its
interests are well protected. "he employer is not
assured of such protection if these employees
themselves are union members.
ART. 2#9.
KTHE RIGHT TO SELF-ORGANI>ATION
SHALL NOT BE ABRIDGEDL MEANS!
It shall be unlawful for any person to=
restrain,
coerce,
discriminate against, or
unduly interfere
with employees and workers in their
e!ercise of the right to self-organi#ation.
*A(%. 2#9,
Any act intended to weaken or defeat the
right is regarded by law as an offense, which is
technically called Nunfair labor practice.H

TITLE VI
NFAIR LABOR PRACTICES
CHAPTER I
CONCEPT
ART. 2#7 NFAIR LABOR
PRACTICES
NATRE OF NFAIR LABOR
PRACTICES!
&. violate the constitutional right of workers and
employees to self-organi#ation,
/. are inimical to the legitimate
interests of both labor and
management, including their right to
bargain collectively and otherwise
deal with each other in an
atmosphere of freedom and mutual
respect,
1. disrupt industrial peace and
). hinder the promotion of healthy and stable
labor-management relations.
PRESCRIPTIVE PERIOD FOR FILING
CRIMINAL AND CIVIL CASES FOR LP!
- "he prescriptive period of filing 7$3 cases
whether it be civil or criminal is ,n' 4'*(
$(,5 %&' *33(-*/ ,$ %&' LP *3%.
- "he prescriptive period for the criminal case
is suspended once the administrative case
has been filed and would only continue
running once the administrative case has
attained finality.
- (-.E/ER: Dinal judgment in the
administrative proceedings shall not be
binding in the criminal case nor shall be
considered as an evidence of guilt but
merely as a proof of compliance of the
reuirements prescribed by the Code.
P('('J-i)i%' $,( $i/in6 3(i5in*/ 3*)'!
final judgment in the administrative proceeding
finding that 7$3 has been committed
CHAPTER II
NFAIR LABOR PRACTICES
OF EMPLOYERS
ART 2#E. LP THAT MAY BE
COMMITTED BY AN
EMPLOYER
&. "o interfere with, restrain or coerce
employees
- in the e!ercise of their right to self-
organi#ationB
/. "o reuire as a condition for employment
that a person or an employee
- shall not join a labor
organi#ation or
- shall withdraw from one to
which he belongsB
1. "o contract out services or functions being
performed by union members
- when such will interfere with,
restrain or coerce employees in the
e!ercise of their right to self-
organi#ationB
). "o initiate, dominate, assist or otherwise
interfere
- with the formation or
administration of any labor organi#ation,
- including the giving of financial
or other support to it or its organi#ers or
officersB
5. "o discriminate in regard to wages, hours of
work, and other terms and conditions of
employment
- in order to encourage or
discourage membership in any labor
organi#ation .
TEST OF DISCRIMINATION!
a. whenever benefits or privileges given to one
is not given to the other under similar or
identical conditions
b. when directed to encourage or discourage
union membership
9. "o dismiss, discharge or otherwise prejudice
or discriminate against an employee
- for having given or being about
to give testimony under this CodeB
(. "o violate the duty to bargain collectively as
prescribed by this CodeB
?. "o pay negotiation or attorneyAs fees to the
union or its officers or agents
- as part of the settlement of any
issue in collective bargaining or any
other disputesB or
'. "o violate a collective bargaining
agreement. %."2= violation must be gross
and with respect to the economic provision
of the C0A

YELLOW DOG CONTRACT= A
promise e!acted from workers as a
condition employment that they are not to
belong to, or attempt to foster, a union
during their period of employment.
- It is contrary to public policy for it is
tantamount to involuntary servitude.
- It is entered into without consideration for
employees waive their right to self-
organi#ation
- 2mployees are coerced to sign
contracts disadvantageous to their
family.
Does At. 123 4' 5 me") th"t ")
employe '"))ot 'o)t"'t o+t (o0*
NO. Contracting out services is not 7$3
per se. It is only 7$3 when the following
conditions e!ist=
1. the service contracted- out are being
performed by union membersB and
2. such contracting-out interferes with,
restrains, or coerce employees in
the e!ercise of their right to self-
organi#ation.
- (-.E/ER, when the contracting-
out is being done to minimi#e
e!penses, then it is a valid e!ercise
of management prerogative.
THREE COMPONENTS OF ART. 2#E
(' )! (DISCRIMINATION)
&. It prohibits discrimination in terms and
conditions of employment in order to
encourage or discourage membership in
the unionB
/. It gives validity to union security
agreementsB
1. It allows an agency shop arrangement
whereby agency fees may be collected from
non-union members.
SECRITY ARRANGEMENTS are stipulations
in the C0A reuiring membership in the
contracting union as a condition for employment
or retention of employment in the company.
PRINCIPLES OF NION SECRITY
ARRANGEMENTS!
1. P(,%'3%i,n . "o shield union
members from whimsical and
abusive e!ercise of
management prerogatives.
2. B'n'$i%) . An additional
membership will insure
additional source of income
to the union in the form of
union dues and special
assessment.
". S'/$-0(')'(2*%i,n . It
strengthens the union
through selective acceptance
of new members on the basis
of commitment and loyalty.
DIFFERENT KINDS OF NION
SECRITY ARRANGEMENTS!
1. CLOSED- SHOP AGREEMENT - the
employer undertakes not to employ any
individual who is not a member of the
contracting union and the said individual
once employer must, for the duration of the
agreement, remain a member of the union in
good standing as a condition for continued
employment.
2. NION @ SHOP AGREEMENT -stipulation
whereby any person can be employed by
the employer but once employed such
employee must, within a specific period,
become a member of the contracting union
and remain as such in good standing for
continued employment for the duration of
the C0A.
3. MAINTENANCE OF MEMBERSHIP
CLASE - the agreement ;.24 %."
reuire non-members to join the contracting
union 07" provides that those who are
members thereof at the time of the
e!ecution of the C0A and those may
thereafter on their own volition become
members must for the duration of the
agreement maintain their membership in
good standing as a condition for continued
employment in the company for the duration
of the C0A.
4. PREFERENTIAL SHOP AGREEMENT -
"he employer agrees to give preference to
the members of the bargaining union in
hiring or filing vacancies and retention in
case of lay-off. 0ut the employer has the
right to hire in open market if union
members are not available. 7sually,
descendants *children, are also given
preference in employment.
5. AGENCY SHOP AGREEMENT - An
agreement whereby employees must either
join the union or pay to the union as
e!clusive bargaining agent a sum eual to
that paid by the members.
- "his is +i('3%'+ *6*in)% KFREE
RIDERL '50/,4'') who benefit from
union activities without contributing to
union support to prevent a situation of
non-union members enriching
themselves at the e!pense of union
members.
THE REFIREMENTS FOR A VALID
NION OR CLOSE SHOP AGREEMENT
0!- T(AT T(E EMPL-1ER CAN
TERM2NATE T(E EMPL-1EE %-R
/2-LAT2-N -% !A2D AGREEMENT3=
&. It must be e!pressed in a clear and
uneuivocal way so as not to leave room for
interpretation because it is a limitation to the
e!ercise of the right to self-organi#ation.
- Any doubt must be resolved against close-
shop.
/. It can only have prospective application and
cannot be applied retroactively.
1. Can only be e!ercised by giving the
employee his right to due process.
- "he employer has the right to
satisfy itself that there are sufficient
bases for the reuest of the union.
- "he termination of the employee
is not automatic upon the reuest of the
union.
). Cannot be applied to employees who are
already employees of the rival union nor to
the employees based on their religious
beliefs.
CHAPTER III
NFAIR LABOR PRACTICES OF
LABOR ORGANI>ATIONS
ART. 2#B. NFAIR LABOR
PRACTICES OF LABOR
ORGANI>ATIONS
a. "o restrain or coerce employees in the
e!ercise of their right to self-organi#ation.
8owever, a labor organi#ation shall have the
right to prescribe its own rules with respect
to the acuisition or retention of
membershipB
b. "o cause or attempt to cause an employer
to discriminate against an employee,
including discrimination
c. "o violate the duly or refuse to bargain
collectively with the employer provides that it
is the representative of the employeesB
d. "o cause or attempt to cause an employer
to pay or deliver or agree to pay or deliver
any money or other things of value, in the
nature of an e!action, for services which are
not performed or not to be performed,
including the demand for a fee for union
negotiationsB
e. "o ask for a accept negotiation or attorneyAs
fees from employers as part of the
settlement of any issue in collective
bargaining or any other disputeB or
f. "o violate a collective bargaining
agreement.
NOTE= <iolation must be gross with respect to
economic provisions of the C0A.
PERSONS CIVILLY LIABLE FOR LP!
&. .fficers and agents of employer
/. $abor organi#ation, officers and agents
PERSONS CRIMINALLY LIABLE FOR
LP!
&. Agents and officers who participated or
authori#ed or ratified the act.
/. Agents, representatives, members of the
government board, including ordinary
members
FEATHERBEDDING - refers to the practice
of the union or its agents in causing or
attempting to cause an employer to pay or
deliver or agree to pay or deliver money or other
things of value, in the nature of e!action, for
services which are not performed or not to be
performed, as when a union demands that the
employer maintain personnel in e!cess of the
latterAs reuirements
TITLE VII
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS
ART 28I. PROCEDRE IN
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING @negotiation by
an organi#ation or group of workmen, in
behalf of its members, with the employer,
concerning wages, hours of work and other
terms and conditions of employment and
the settlement of disputes by negotiation
between an employer, and the
representative of his employees.
PROCEDRE IN COLLECTIVE
BARGAINING=
&. 6ritten notice with statement of proposals
/. -eply by the other party
1. In case of differences, either party may
reuest for a conference
). If not settled %C+0 may intervene and
encourage the parties to submit the dispute
to a voluntary arbitrator
5. If not resolved, the parties may go to where
they want and resort to any other lawful
means.
COLLECTIVE BARGAINING
AGREEMENT- (CBA)
negotiated contract between a legitimate
labor organi#ation and the employer
concerning =
- wages,
- hours of work and
- all other terms and
- conditions of employment in a
bargaining unit, including
mandatory provisions for grievances
and arbitration machineries.
MANDATORY PROVISIONS OF THE
CBA!
&. wages
/. hours of work
1. grievance machinery
). voluntary arbitration
5. family planning
9. rates of pay
(. mutual observance clause
In addition, the 0ureau reuires that the C0A
should include a clear statement of the terms of
the C0A.
ART 28". DTY TO BARGAIN
COLLECTIVELY WHEN THERE E=ISTS A
COLLECTIVE BARGAINING
AGREEMENT
BARGAINING NIT- a group of employees
of a given employer, comprised of all or
less that all the entire body of the
employees, consistent with euity to the
employer, - indicate to be best suited to
serve the reciprocal rights and duties of the
parties under the collective bargaining
provision of the law.
FOR FACTORS IN DETERMINING
THE APPROPRIATE BARGAINING
AGREEMENT!
&. "he 2!press 6ill or ;esire of the
2mployees *@lobe ;octrine,B
/. "he 4ubstantial and +utuality Interest
DactorB
1. 3rior Collective 0argaining 8istoryB
). 2mployment 4tatus, such as
- temporary
- seasonal, and
- probationary employee
THINGS TO CONSIDER IN
DETERMINING THE COMMNITY OF
INTEREST DOCTRINE!
&. similarity in the scale and manner of
determining earnings
/. similarity in employment benefits, hours of
work and other terms and conditions of
employment
1. similarity in the kinds of work performed
). similarity in the ualifications, skills and
training of the employees
5. freuency of contract or interchange among
the employees
9. common supervision and determination of
labor-relations policy
(. history of previous collective bargaining
?. desires of the affected employees
'. e!tent of union organi#ation
ATOMATIC RENEWAL CLASE - this is
under the present Article which establishes an
automatic renewal clause the C0A is effective
and enforceable even after the e!piration of the
period fi!ed by the parties as long as no new
agreement is reached by them.
MODES OF CHOOSING THE
E=CLSIVE BARGAINING NIT!
&. 42$2C"I.%
- certification election
/. ;24I@%A"I.%
a, voluntary recognition
b, direct certification
CERTIFICATION ELECTION - process of
determining by secret ballot the sole and
e!clusive bargaining agent of the employees in
an appropriate bargaining unit, for purposes of
collective bargaining.
DIRECT CERTIFICATION - process whereby
the +ed-Arbiter directly certifies a labor
organi#ation of an appropriate bargaining unit of
a company after a showing that such petition is
supported by at least a majority of the
employees in the bargaining unit. I% i) n,
/,n6'( *//,1'+. (EO 111)
VOLNTARILY RECOGNITION
- process whereby the employer recogni#es a
labor organi#ation as the e!clusive
bargaining representative of the employees
in the appropriate bargaining unit after a
showing that the labor organi#ation is
supported by at least a majority of the
employees in the bargaining unit.
CERTIFICATION
ELECTION
CONSENT
ELECTION
&. aimed at
determining the
sole and
e!clusive
bargaining agent
of all the
employees in an
appropriate
bargaining unit
for the purpose
of collective
bargainingB
&. an agreed one,
its purpose
being merely to
determine the
issue of majority
representation of
all the workers in
the appropriate
collective
bargaining unit
/. separate and
distinct from a
consent election
/. from the very
nature of
consent election,
it is a separate
and distinct
process and has
nothing to do
with the import
and effect of a
certification
election
EFFECT OF VOLNTARILY
RECOGNITION BY THE EMPLOYER!
- 0y voluntarily recognition of the employer,
the labor organi#ation recogni#ed by the
employer as the e!clusive bargaining agent
may collectively bargain with the employer.
WHEN IS THE CONDCT OF A
CERTIFICATION ELECTION
MANDATORY ON THE PART OF THE
BLRM
1. In *n -n,(6*niG'+ 3,50*n4 F
a. upon the filing of a verified petition by a
legitimate labor organi#ationB or
b. upon the filing of a petition by the
employer when such employer is
reuested by the employees to bargain
collectively.
2. In *n ,(6*niG'+ 3,50*n4 upon the filing of
a verified petition by a legitimate labor
organi#ation uestioning the majority status
of the incumbent bargaining agent within the
9>-day freedom period before the e!piration
of a C0A.
- "he petition must be supported by
the written consent of at least /5J
of all the employees in the
appropriate bargaining unit.
NOTE= In case the establishment is organi#ed,
the employer cannot file a petition for
certification electionB only a legitimate labor
organi#ation can file such petition.
WHEN MAY A LABOR
ORGANI>ATION FILE A PETITION FOR
CERTIFICATION ELECTION!
1. 6here the ')%*./i)&5'n% i) n,%
,(6*niG'+, it can file a petition for
certification election at any time, subject
however to the .%2-2$2C"I.%-32--E2A-
-7$2.
2. In an ,(6*niG'+ ')%*./i)&5'n% F
a. when %&'(' i) * CBA, the labor
organi#ation can file a petition for
certification election within the 9>-day
freedom period *C.%"-AC"-0A-
-7$2 ,
b. when %&'(' i) n, CBA, then the labor
organi#ation can file a petition for
certification election at any time, subject
to the N;eadlockH bar -ule.
DEADLOCK BAR RLE, a petition for
certification election can only can only be
entertained if there is no pending bargaining
deadlock submitted to conciliation or arbitration
or had become the subject of a valid notice of
strike or lockout.
REFISITES BEFORE A LABOR
NION CAN BE DECLARED A WINNER!
&. +ajority of the eligible voters cast their
votes.
/. .btained majority of the valid votes cast.
*;.70$2 +AI.-I"E,
HOW TO DETERMINE THE TWO
MA?ORITY RLE !
&. In determining valid votes, eliminate spoiled
ballots but include challenged votes
/. In determining the eligible votes cast,
include spoiled ballots
RN-OFF ELECTIONS

"his happens when=
a. "he election provides for at least 1
choices*Nno unionH is always a
choice,
b. "he election results in none of the
choices received the majority
votes*5>JU&, of the valid votes cast
R-n-,$$ shall be conducted=
a. 0etween the labor union receiving
the two highest number of votes
b. 3rovided that the total number of
votes for all the contending unions is
at least 5>J of the total votes cast
RLES WHICH WILL PREVENT THE
HOLDING OF A CERTIFICATION
ELECTION!
&. Contract-0ar -ule
/. .ne-Eear 0ar -ule
1. ;eadlock 0ar -ule
THE CONTRACT-BAR RLE provides that
while a valid and registered C0A is subsisting,
the 0$- is not allowed to hold an election
contesting the majority status of the incumbent
union.
E=CEPTIONS TO THE RLE!
&. 6here it is shown that because
of a schism in the union the contract can
no longer serve to promote industrial
stability, and the holding of the election
is in the interest of the employees right
in the selection of their bargaining
representatives.
/. 0asic to the contract bar rule is
the proposition that the denial of the
right to select representatives can be
justified only where stability is deemed
paramount.
1. Certain types of contracts which
do not foster industrial stability such as
contracts where the identity of the
representative is in doubt or those that
are prematurely renewed
REFIREMENTS IN ORDER TO
INVOKE CONTRACT-BAR RLE!
&. Agreement is in writing, signed by all
contracting parties.
/. It must contain the terms and conditions of
employment.
1. Covered employees in an appropriate
bargaining unit.
). It is for a reasonable period or duration.
5. It must be ratified.
9. It must be registered with the 0ureau.
(. "he violation of the contract bar rule or the
e!istence of a duly registered C0A must be
specifically impleaded as a defense.
E=CEPTIONS TO THE CONTRACT-
BAR RLE!
&. C0A is not registered.
/. C0A deregistered.
1. C0A was hastily concluded way ahead of
the freedom period
). C0A is incomplete in itself
5. C0A does not foster industrial peace
because of schism
9. C0A was concluded in violation of an order
enjoining the parties from entering into a
C0A until the issue of representation is
resolved.
EFFECT OF AN INVALID AND
NREGISTERED CBA!
- "hen there is no bar and therefore a
certification election may be held.
NOTE! -egistration of C0A only puts into effect
the contract-rule bar rule but the C0A itself is
valid and binding even if unregistered.
KSBSTITTIONARY DOCTRINEL-- It
means that where there occurs a shift in the
employeesA union allegiance after the e!ecution
of a collective bargaining contract with the
employer, the employees can change their
agent F the labor union, but the collective
bargaining contract which is still subsisting,
continues to bind the employees up to its
e!piration date. "hey, may, however, bargain
for the shortening of said e!piration date.
DEADLOCK F arises when there is an
impasse which presupposes reasonable effort at
good faith bargaining which, despite noble
intentions, did not conclude in agreement
between the parties.
?RISDICTIONAL PRECONDITIONS
OF COLLECTIVE BARGAINING! (Ki,:
L,4 C*)')
&. 3ossession of status of majority
representation
/. 3roof of majority representation
1. Clear and uneuivocal demand to bargain
collectively
KDTY TO BARGAIN COLLECTIVELYL-
"he performance of a mutual obligation to meet
and convene
- promptly and e!peditiously and in good faith,
for the purpose of negotiating an agreement with
the respect to
- wages,
- hours of work and
- all other terms and conditions of
employment, including
- proposals for adjusting any
grievances or uestions arising
under such agreement and
- e!ecuting a contract incorporating
such agreements if reuested by
either party.
- 6hen there is a collective bargaining
agreement, the ;7"E ". 0A-@AI%
C.$2C"I<2$E shall mean that neither party
shall terminate or modify such agreement
during its lifetime.
- 8owever, either party can serve a
written notice %, %'(5in*%' ,( 5,+i$4
%&' *6(''5'n% *% /'*)% 9I +*4) 0(i,(
%, i%) '70i(*%i,n 0'(i,+.
D,') %&' D-%4 %, B*(6*in C,//'3%i2'/4
3*((4 1i%& i% %&' +-%4 %, *6('' %, *
0(,0,)*/ ,( %, 5*:' * 3,n3'))i,nM
NO. "he duty to bargain collectively does
not compel any party
- to agree to a proposal or
- to make a concession
E=AMPLES OF BAD FAITH
BARGAINING!
1. S-($*3' B*(6*inin6 F occurs when
employer constantly changes its positions
over the agreement.
2. B,-/1*(i)5 F occurs
a. when the employer directly bargains
with the employee disregarding the
union.
b. 2mployer submits its proposals and
adopts a take it or leave it stand. "his is
not negotiation because the take it or
leave it stand implies threat.
1. 4ide 0ar "echniue
DTIES OF THE PARTIES DRING
THE 9I-DAY PERIOD!
&. to keep the status uo and
/. to continue in full force and effect and the
terms and conditions of the e!isting
agreement during the 9>-day period andGor
until a new agreement is reached by the
parties. *Art. /51,
ART 28" @ A. TERMS OF A
COLLECTIVE BARGAINING
AGREEMENT
DRATION OF THE CBA!
&. 6ith respect to the representation aspect
the same lasts for 5 years.
/. 6ith respect to other provisions, the same
shall last for a ma!imum period of 1 years
after e!ecution.
RLE ON RETROACTIVE EFFECTS OF
AGREEMENT PROVISIONS!
- Any agreement on such other provisions of
the C0A if made 1i%&in 9 5,n%&) after the
date of e!piry, there is ATOMATIC
RETROACTION to the day immediately
following such date of e!piry.
- If n,% 1i%&in 9 5,n%&); %&' 0*(%i') 5*4
*6('' %, %&' DATE OF RETROACTION.
"his rule applies only if there is an
2MI4"I%@ A@-22+2%". IF THERE IS NO
E=ISTING AGREEMENT, there is no
retroactive effect because the date agreed
upon shall be the start of the period of
agreement.
TAKE NOTE! Article /51-A on retroaction does
not apply if the provisions were imposed by the
4ecretary of $abor by virtue of arbitration. It
applies only if the agreement was voluntarily
made by the parties.
SCCESSOR-IN-INTEREST DOCTRINE
occurs when an employer is succeeded by
another employer, the successor-in-interest who
is a buyer in good faith has no liability to
employees in continuing employment and
collectively bargain because they are contracts
in personam, as well as for cases of unfair labor
practice.
E=CEPTIONS TO THE SCCESSOR-IN-
INTEREST DOCTRINE!
&. If the transfer is done in bad faithB
/. If it was done to circumvent the obligation of
the sellerB
1. If the successor e!pressly assumes the
obligations of the seller
BARGAINING IMPASSE @ e!ists when good
faith bargaining on the part of the parties filed to
resolve the issue and there are no definite plans
for further efforts to break the deadlock
ART 28#. NO IN?NCTION RLE
%o temporary or permanent injunction pr
restraining order in any case in2,/2in6 ,(
6(,1in6 ,-% ,$ /*.,( +i)0-%') shall be issued
by any court or other entity, '73'0% as otherwise
provided in Articles /&? and /9) of this Code.
ART 288. E=CLSIVE BARGAINING
REPRESENTATION AND WORKERAS
PARTICIPATION IN POLICY AND
DECISION-MAKING
IN DETERMINING THE APPROPRIATE
BARGAINING NIT THE FF. MST BE
CONSIDERED!
&. 6ill of employees
/. Affinity and unity of employeeAs interest
1. 3rior collective bargaining history
). 2mployment status, such as temporary,
seasonal and probationary employees.
ONE-NION; ONE-COMPANY POLICY- the
proliferation of unions in an employer unit is
discouraged as a matter of policy unless there
are compelling reasons which would deny a
certain class of employees the right to self-
organi#ation for purposes of collective
bargaining.
E=CEPTIONS! supervisory employees who are
allowed to form their own unions apart from the
rank-and-file employees
LABOR MANAGEMENT CONCILS deal with
the employer on matters affecting employeeAs
rights, benefits and welfare. "hey may be
formed even if there is already a union in the
company.
TITLE VII- A
(*) in3,(0,(*%'+ .4 RA 9718)
GRIEVANCE MACHINERY AND
VOLNTARY ARBITRATION
ART 29I. GRIEVANCE MACHINERY
AND VOLNTARY ARBITRATION
GRIEVANCE MACHINERY - +echanism for
the adjustment of controversies or
disputes arising from the
interpretation or implementation of
the C0A and the interpretation or
enforcement of personnel policies
GRIEVANCE ARISES! when a dispute or
controversy arises over the implementation or
interpretation of a C0A or from the
implementation or enforcement of company
personnel policies, and either the union or the
employer invokes the grievance machinery
provision for the adjustment or resolution of such
dispute or controversy.
- both parties must resort to grievance
machinery
ART 291. ?RISDICTION OF
VOLNTARY ARBITRATORS OR PANEL
OF VOLNTARY ARBITRATORS
?RISDICTION OF VOLNTARY
ARBITRATORS!
2MC$74I<2 .-I@I%A$ I7-I4;IC"I.%
C.%D2--2; 0E $A6
a, interpretation or implementation
of the C0A
b, interpretation or enforcement of
company personnel polices
- It is the labor arbiter and not the
grievance machinery which has jurisdiction
over dismissal pursuant to the union
security clause.
&. I7-I4;IC"I.% 0E A@-22+2%" .D "82
3A-"I24
- voluntary arbitrators shall also hear and
decide all other disputes including 7$3 and
bargaining deadlocks.
GRONDS FOR ?DICIAL REVIEW OF
DECISIONS OF VOLNTARY
ARBITRATORS!
$ack of jurisdiction
&. @rave abuse of discretion
/. <iolation of due process
1. ;enial of substantial justice
). 2rroneous interpretation of the law
TITLE VIII
STRIKES AND LOCKOTS AND
FOREIGN INVOLVEMENT IN TRADE
NION ACTIVITIES
CHAPTER I
STRIKES AND LOCKOTS
ART. 29". STRIKES; PICKETING AND
LOCKOTS
STRIKE - Any temporary stoppage of work by
the concerted action of employees as a result of
an industrial or labor dispute.
IMPORTANCE
- it is the most effective weapon of labor in
protecting the rights of employees to
improve the stems and conditions of their
employment.
STRIKE-BREAKER- any person who
obstructs, impedes or interferes by force,
violence, coercion, threats or intimidation with
any peaceful picketing by employees during any
labor controversy affecting wages, hour or
conditions of work or in the e!ercise of the right
to self organi#ation or collective bargaining
STRIKE AREA F the establishment,
warehouse, depots, plants or offices, including
the sites or premises used as runaway shops of
the employer struck against, as well as the
immediate vicinity actually used by picketing
strikers in moving to an fro before all points of
entrance to and e!it front said establishment
LOCKOT - means the temporary refusal of
an employer to furnish work as a result of an
industrial or labor dispute.
GRONDS FOR THE DECLARATION
OF STRIKE
&. deadlock in collective bargainingB andGor
/. unfair labor practices
WHO CAN DECLARE ECONOMIC
(B*(6*inin6 D'*+/,3:) STRIKE!
&. Collective bargaining agent
WHO CAN DECLARE POLITICAL
(LP) STRIKE!
&. collective bargaining agent
/. $egitimate labor organi#ation in behalf of
members
SIT-DOWN STRIKE - is characteri#ed by a
temporary work stoppage of workers who
thereupon sei#e or occupy property of the
employer or refuse to vacate the premises of the
employer.
I) * )i%-+,1n )%(i:' /'6*/M
NO. It borders to a criminal act because
the employees trespass on the premises of the
employer.
WILDCAT STRIKE- is a work stoppage that
violates the labor contract and is not authori#ed
by the union.
I) * 1i/+3*% )%(i:' 2*/i+M
NO. It is not valid because it fails to
comply with certain reuirements of the law, to
wit, notice of strike, vote, and report on strike
vote.
I) * K1'/6* n6 .*4*nL /'6*/M
NO. A Nwelga ng bayanH is illegal
because it is a political strike and therefore there
is no bargaining deadlock nor any 7$3. It is a
political rally.
PICKETING - is the marching to and fro the
employerAs premises, usually accompanied by
the display of placards and other signs making
knowing the facts involved in a labor dispute.
"his is an e!ercise of ones freedom of speech.
ECONOMIC
STRIKE
LP STRIKE
&. <oluntary strike
because the
employee will
declare strike to
compel
management to
grant its
demands.
&. Involuntary =
labor
organi#ation is
forced to go on
strike because
the 7$3
committed
against them by
the employer. It
is an act of self-
defense since
the employees
are being
pushed to the
wall and their
only remedy is to
strike.
COOLING @OFF PERIOD - that period of
time given the %C+0 to mediate and conciliate
the parties.
- It is that span of time allotted by law for the
parties to settle their disputes in a peaceful
manner, before staging a strike or lockout.
NMBER OF DAYS IN THE COOLING
OFF PERIOD!
&. If the ground for the intended strike or
lockout is DEADLOCK IN COLLECTIVE
BARGAINING, the cooling-off period is "I
+*4) from the filing of the notice of strike.
/. If the ground for the intended strikes is
NFAIR LABOR PRACTICE, the cooling-
off period is 18 +*4) from the filing of the
notice of strike. "herefore=
- 8.62<2-, in case of dismissal from
employment of union officers duly in
accordance with the union constitution and
by-laws, which may constitute union busting
where the e!istence of the union is
threatened, the &5-day cooling-off period
shall %." apply A%; the union may take
action immediately.
- the 3,,/in6 ,$$ 0'(i,+) *n+ )'2'n-+*4
)%(i:' .*n i) 5*n+*%,(4 otherwise the
purposes for which they have been imposed
would not be achieved
E=CEPTION TO THE COOLING-OFF
PERIOD!
- In case of dismissal from employment of
union officers duly elected in accordance
with the union constitution and by-laws,
which may constitute union busting where
the e!istence of the union is threatened, he
&5-day cooling-off period shall %." apply
A%; %&' -ni,n 5*4 %*:' *3%i,n
i55'+i*%'/4 but they must still observe the
mandatory ( day period before they can
stage a valid strike.
STRIKE VOTE - is a reuirement wherein
the decision to declare a strike must be=
&. approved by a majority of the total union
membership in the bargaining unit
concerned,
/. obtained by secret ballot
1. in meetings or referenda called for the
purpose.
PRPOSE OF A STRIKE VOTE - is to ensure
that the intended strike is a majority decision.
W&'n )&,-/+ %&' )%(i:' 2,%' .'
)-.5i%%'+M
"he report on the strike vote must be
submitted to the ;.$2 at least ( days before the
intended strike subject to the cooling-off period.
TESTS FOR THE LEGALITY OF A
STRIKE!
&. 6hether or not is has a /*1$-/ PRPOSE.
/. 6hether or not is complies with the
PROCEDRAL REFIREMENTS OF THE
LAW, to wit F
- notice of strike
- 1>G&5-day cooling-off
period
- strike vote
- (-day strike ban
1. 6hether or not it is e!ecuted through
LAWFL MEANS.
- NOTE! T&' " %')%) 5-)% 3,n3-(.
EFFECT OF GOOD FAITH OF
STRIKERS ON LEGALITY OF STRIKE!
- A strike may be considered legal where the
union believed that the company committed
7$3 and the circumstances warranted such
belief in good faith, although subseuently
such allegations of 7$3 are found out as not
true.
WHEN CAN THE SEC. OF LABOR
ASSME ?RISDICTION OVER A
STRIKEM
&. there e!ists a labor dispute causing or likely
to cause a strike or lockout in a industry
indispensable to the national interest,
/. the 4ecretary of $abor and 2mployment
may assume jurisdiction and 2I"82-=
- decide it or
- certify the same to the
Commission for C.+37$4.-E
A-0I"-A"I.%.
INDISPENSABLE INDSTRY is based solely
upon the discretion of the 4ecretary of $abor
EFFECTS OF THE ASSMPTION OF
?RISDICTION OF THE SECRETARY
&. *-%,5*%i3*//4 'nH,inin6 the intended or
impending strike or lockout as specified in
the assumption or certification order.
/. if one has already taken place at the time of
assumption or certification, all striking or
locked out employees shall i55'+i*%'/4
('%-(n %, 1,(: and
1. the employer shall immediately resume
operations and ('*+5i% *// 1,(:'() under
the same terms and conditions prevailing
before the strike or lockout.
). A motion for reconsideration does not
suspend the effects as the assumption order
is immediately e!ecutory.
TOTALITY DOCTRINE!
NV the culpability of an employerAs remarks were
to be evaluated not only on the basis of their
implicit implications, but were to be appraised
against the background of and in conjunction
with collateral circumstances.
- n+'( %&i) K+,3%(in'L e!pressions of
opinion by an employer which, though
innocent in themselves, freuently were held
to be culpable because
- of the circumstances
under which they were uttered,
- -the history of the
particular employerAs labor relations of
anti-union bias or
- -because of their
connection with an established collateral
plan of coercion or interference.H
*-othenberg,
ISSES THAT THE SECRETARY OF
LABOR CAN RESOLVE WHEN HE ASSMES
?RISDICTION OVER A LABOR DISPTE!
&. .nly issues submitted to the 4ecretary may
be resolved by him. (PAL 2). S'3. ,$
L*.,(; 2" ?*n-*(4 1BB1)
/. Issues submitted to the 4ecretary for
resolution and such issues involved in the
labor dispute itself. (S%. S3&,/*)%i3*A)
C,//'6' 2). T,(('); 2B ?-n' 1BB2)
1. 4ecretary of $abor may subsume pending
labor cases before $abor Arbiters which are
involved in the dispute. (In%A/
P&*(5*3'-%i3*/) 2). S'3 ,$ L*.,(; IB
?*n-*(4 1BB2).
). 3ower of 4ec. of $abor is plenary and
discretionary. (S%. L-:'A) M'+i3*/ C'n%'(
2). T,(('); 2B ?-n' 1BB"B reiterated in PAL
2). C,n$'),(; 1I M*(3& 1BB#).
TESTS TO DETERMINE VALIDITY OF
STRIKES.
&. PRPOSE TEST - "he strike must be due
to either
- -bargaining deadlock
andGor
- -unfair labor practice.
/. MEANS EMPLOYED TEST - -A strike may
be legal at its inception but eventually be
declared illegal if the strike is accompanied
by violence which violence is widespread,
pervasive and adopted as a matter of policy
and not merely violence which is sporadic
which normally occur in a strike area.
". IN ACCORDANCE WITH PROCEDRAL N
SBSTANTIVE REFIREMENTS OF LAW
In C*)' %&' )%(i:' i) +'3/*('+ /'6*/;
*(' %&' )%(i:'() 'n%i%/'+ %, )%(i:' +-(*%i,n
0*4M
IT DEPENDS.
&. If it is an E3,n,5i3 S%(i:'
NO, the strikers are %." entitled to strike
duration pay since the employer should get the
euivalent dayAs work for what the pays his
employees.
/. If it is a LP S%(i:'
6ould depend on the authority deciding
(+i)3('%i,n*(4).
GENERAL RLE!
- 4trikers are not entitled to their wages
during the period of a strike, '2'n i$ %&'
)%(i:' i) /'6*/.
E=CEPTIONS!
&. 6here the strikers voluntarily and
unconditionally offered to return to work,
but the employer refused to accept the
offer.
- -"hey are entitled to
backwages from the date the offer was
made
- -e.g. of 7nconditioned
offer= Nwe will return tomorrowH and %."
Nwilling to return providedVH
/. 6here there is return-to-work and the
employees are discriminated against.
- -"hey are entitled to
backwages from the date of
discrimination.
RLES IN STRIKES IN HOSPITALS
&. It shall be the duty of striking employees or
locking-out employer to provide and maintain an
effective skeletal workforce of medical and other
health personnel for the duration of the strike or
lock-out.
/. 4ecretary of $abor may immediately assume
jurisdiction within /) hours from knowledge of
the occurrence of such strike or lock-out or
certify it to the Commission for compulsory
arbitration
GOCCs organi#ed under the Corporation Code
with no original charter of its
own can declare a strike.

ART 29#. PROHIBITED ACTIVITIES
&. %. labor organi#ation or employer shall
declare a strike or lockout
- without first having bargained
collectively in accordance with "itle
<II of this 0ook or
- without first having filed the notice
reuired in the preceding Article or
without the necessary strike or
lockout vote first having been
obtained and reported to the
;epartment.
- %. strike or lockout shall be declared=
a. AD"2- assumption of jurisdiction by
the 3resident or the 4ecretary or
b. AD"2- certification or submission of
the dispute to compulsory or
voluntary arbitration or
-;7-I%@ the pendency of cases
involving the same grounds for the strike or
lockout.
b, %. person all obstruct, impede or interfere
with .II by force, violence, coercion, threats or
intimidation D<C"I
- any peaceful picketing by
employees
- during any labor controversy or
in the e!ercise of the right of self-
organi#ation or collective bargaining
or shall aid or abet such obstruction
or interference.
c, %. employer shall use or employ any
4"-IC2-0-2AC2-
- nor shall any person be employed as a
strike-breaker.
d, %. public official or employee, including
officers and personnel of the %ew Armed Dorces
of the 3hilippines of the Integrated %ational
3olice, or armed persons,
- shall bring in, introduce or escort
in any manner,
- any individual who seeks to replace
strikes in entering or leaving the
premises of a strike area, or work in
place of the strikers.
- "he police force shall keep out of
the picket lines unless actual
violence or other criminal acts occur
therein=
Pro'ided, "hat nothing herein shall be
interpreted to prevent any public officers from
taking any measure necessary to=
- maintain peace and order,
- protect life and property, andGor
- enforce the law and legal order.
e, %. person engaged in picketing shall
- commit any act of violence, coercion
or intimidation or
- obstruct the free ingress to or
egress from the employerAs
premises for lawful purposes, or
- obstruct public thoroughfares.
RLES ON REINSTATEMENT OF
WORKERS!
GENERAL RLE 6 4triking
employees are entitled to reinstatement,
regardless of whether or not the strike was the
conseuences of the employerAs 7$3
REASON= because while out of
strike, the strikers are not considered to have
abandoned their employment, but rather have
only ceased from their labor.
- -"he declaration of a strike is %." a
renunciation of employment relation.
E=CEPTIONS= "he following strikers are
%." entitled to reinstatement=
&. union officers who knowingly
participates in an illegal strikeB
and
/. any strikerGunion member who
knowingly participate in the
commission of illegal acts during
the strike.
ART 298. IMPROVED OFFER
BALLOTING
IMPROVED OFFER BALLOTING! a
referendum conducted by the %C+0 on or
before the 1>
th
day of the strike, for the purpose
of determining whether or not the improved offer
of the union is acceptable to the union members.
applies only to economic strikes *bargaining
deadlock,
PRPOSE= to ascertain the real sentiment
of the silent majority of the union members
on strike.
REDCED OFFER BALLOTTING
- a referendum conducted by the %C+0,
- for the purpose of determining whether or
not the reduced offer of the union is
acceptable to the board of directors, trustees
or partners.
- applies only to economic strike
ART 299. ARREST AND DETENTION
G'n'(*/ (-/' is that a police officer cannot
arrest or detain a union member for union
activities without previous consultations with the
4ecretary of $abor '73'0% on grounds of=
a. national security
b. public peace
c. commission of a crime
BOOK SI=
POST EMPLOYMENT
TITLE I
TERMINATION
OF
EMPLOYMENT
ART 27B. SECRITY OF TENRE
SECRITY OF TENRE is the constitutional
right granted the employee, that the employer
shall not terminate the services of an employee
e!cept for just cause or when authori#ed by law.
An employee that has been dismissed illegally is
entitled to=
a. -einstatement
b. 0ackwages
ART 2EI. REGLAR AND CASAL
EMPLOYMENT
REGLAR EMPLOYMENT- .ne wherein an
employee is engaged to perform activities which
are usually necessary or desirable in the usual
business or trade of the employer.
TEMPORARY EMPLOYMENT-.ne wherein
an employee is engaged to work on a specific
project or undertaking which is usually
necessary or desirable in the usual business or
trade of the employer, the completion of which
has been determined at the time of the
agreement of the employee.
SEASONAL EMPLOYMENT -.ne wherein
an employee is engaged to work during a
particular season on an activity that is
usually necessary or desirable in the usual
business or trade of the employer.
PROBATIONARY PERIOD OF
EMPLOYMENT - the period needed to
determine the fitness for the job, i .e., the
time needed to learn the job.
It is period during which the employer
may determine if the employee is ualified for
possible inclusion in the regular force.
NOTE= "he standard which the
probationary employee is to meet must be made
known by the employer to the employee at the
time of the engagement.
3robationary employees may be terminated
for the same causes as a regular employee,
e!cept that there is an additional ground F failure
to meet the standard.
Is it necessary that probationary employment
be for a period of 9 monthsW
%o. 3rovided that the following
reuisites concur=
&. it is done before the lapse of 9
monthsB
/.employee must be advised of such e!tensionB
1. employee must agree.
EFFECT IF PROBATIONARY EMPLOYEE
IS ALLOWED TO WORK BEYOND 9
MONTHS!
If the probationary employee is allowed
to work beyond the period of 9 months or the
agreed probationary period, said employee
become a regular employee by operation of law.
7nder the $abor Code, Nan employee
who is allowed to work after a probationary
period shall be considered a regular employee.H
*Art. /?&.,
ART. 2E2. TERMINATION BY
EMPOYER
?ST CASES!
&. 4erious misconduct or willful disobedience
by the employee of the lawful orders of his
employer or representative in connection
with his workB
/. @ross and habitual neglect by the employee
of his dutiesB
1. Draud or willful breach by the employee of
the trust reposed in him by his employer or
duly organi#ed representativeB
). Commission of a crime or offense by the
employee against the person of his
employer or any immediate member of his
family or his duly authori#ed representativeB
and
5. .ther causes analogous to the following=
ART. 2E"- 2E#
ATHORI>ED CASES OF
TERMINATION BY THE EMPLOYER!
&. "he installation of labor-saving devices
*automation,
/. -edundancy *superfluity in the performance
of a particular work,
1. -edundancy to prevent losses *there is
e!cess of employees and employer wants to
prevent financial losses,
). "he closing or cessation of operation of the
establishment or undertaking 7%$244 the
closing is for the purpose of circumventing
the provisions of the $abor Code.
5. Illness
a. If illness is incurable within 9 months
and is
b. deleterious to his health or his co-
employees.
c. certification from public heath officer
that illness is incurable within 9
months.
STANDARDS NDER WHICH AN
EMPLOYER MAY RETRENCH!
&. $osses e!pected should be imminent and
substantial.
/.It must be reasonably necessary and likely to
effectively prevent the e!pected losses
1. Alleged losses if already incurred, and the
e!pected imminent losses sought to be
forestalled, must be proved by sufficient and
convincing evidence.
ART. 2E8. TERMINATION BY
EMPLOYEE
TERMINATION BY THE EMPLOYEE
An employee may terminate 6I"8.7"
I74" CA742 the employee-employer
relationship by serving a WRITTEN NOTICE on
the employer at least one month in advance. .
"he employer upon whom no such
notice was served may hold the employee liable
for damages.
An employee may put an end to
establish WITHOT SERVING ANY NOTICE on
the employer for any of the following H-)%
3*-)')!
&. 4erious insult by the employer or his
representative on the hour and person of the
employeeB
/. Inhuman and unbearable treatment
accorded the employee by the employer or
his representativeB
1. Commission of a crime or offense by the
employer or his representative against the
person of the employee or any of the
immediate members of his familyB and
). .ther causes analogous to any of the
foregoing.
SEPARATION PAY
In case of termination due to
a, "82 I%4"A$$A"I.% .D $A0.--4A<I%@
;2<IC24 .D
b, -2;7%;A%CE,
- the worker affected thereby shall be entitled
to a separation pay euivalent to at least
one *&, month pay or to at least one *&,
month pay for every year of service,
whichever is higher.
c, -2"-2%C8+2%" ". 3-2<2%" $.4424
and C$.47-24 .- C244A"I.% .D
.32-A"I.%4 *%." due to serious
business losses or financial reverses,
- "he separation pay shall be euivalent to
one *&, month pay or at least X month pay
for every year of service, whichever is
higher.
d, In the case of I$$%244
- separation pay euivalent to at least one
month salary or to X month salary for every
year of service, whichever is greater, a
fraction of at least 9 months shall be
considered one *&, whole year.
NOTE= If C$.47-2 is due to severe financial
losses, it is still debatable whether or not
separation pay should be given.
- I f you are able to prove that such portion of
capital *&>J, investment has been impaired,
the employer should be e!empt for the
payment of separation pay.
GIDELINES TO DETERMINE THE
VALIDITY OF TERMINATION!
&. @ravity of the offence
/. 3osition occupied by the employee
1. ;egree of damage to the employer
). 3revious infractions of the same offense
5. $ength of service
ART 2E7. RETIREMENT
RETIREMENT AGE $"he age of retirement is
that specified in the C0A or in the employment
contract. If it is not specified,
&. 9>-95 -retirement is optional
but the employee must have
served at least 5 years B
/. 95-compulsory retirement age
*no need for 5 years of
service,
BENEFITS- A retiree is entitled to a
retirement pay euivalent at least X month
salary for every year of service, a fraction of at
least si! *9, months being considered as one
whole year.
7nless the parties provide for broader
inclusions, the term None half *&G/, monthH salary
shall mean=
&5 days plus &G&/ of the
&1
th
month pay and
the cash euivalent of
%." more than 5 days of service
incentive leaves.
*//.5 days per year of service,
NOTE= 2!empted from the payment of
retirement pay are retail, service and agricultural
establishments or operations employing %."
more than ten *&>, employees or workers.
BOOK SEVEN
TRANSITORY AND FINAL
PROVISIONS
TITLE II
PRESCRIPTION OF OFFENSES AND
CLAIMS
ART. 2B1. MONEY CLAIMS
PERIODS OF PRESCRIPTION
A. MONEY CLAIMS -"he prescriptive period is
1 years from the accrual of the cause of
action.
0. LP -"he prescriptive period of filing a case
for 7$3 is & year from the accrual of the
cause of action.
ILLEGAL DISMISSAL
"he prescriptive period of filing a case
for illegal dismissal is ) years from the accrual of
the cause of action. *Art. &&)9,
NOTE= "he period of prescription mentioned
under Article /?&, now Article /'/, of the $abor
Code, refers to and Nis limited to money claims,
all other cases of injury to rights of a
workingman being governed by the Civil Code.
8ence, reinstatement prescribes in ) years.
POST- EMPLOYMENT
FORMS OF REINSTATEMENT=
&. ACTAL OR PHYSICAL REINSTATEMENT
-the employee shall be admitted back to
workB
/. PAYROLL REINSTATEMENT
- the employee is merely reinstated in
the payroll.
PERIOD COVERED BY THE PAYMENT OF
BACKWAGES! 0ackwages shall cover the
period from the date of dismissal of the
employee up to the date of actual reinstatement.A
SECRITY OF TENRE! An employer
CA%%." terminate the services of an employee
2MC23" for a just cause or when authori#ed by
law.
REFIREMENTS OF DE PROCESS
BEFORE AN EMPLOYEE CAN BE REMOVED!
&. written notice to apprise the employee of the
particular acts or omission for which his
dismissal is sought and is hereby
considered as the proper chargeB
/. ample opportunity to be employee to be
heard and if the employee so decides, with
the assistance of counselB and
1. written notice informing the employee of the
employerAs decision to dismiss him.
K7nder the so-called OWENPHIL
DOCTRINEH if just or authori#ed cause e!ist but
the affected employees right to due process has
been violated, the dismissal is valid but the
employee is entitled to damages by way of
indemnification for the violation of the right.
.n Ian. /(, />>>, the 4C in the case of
SERRANO 2). ISETANN '%. */. ;isregarded
this 62%38I$ ;.C"-I%2 and ruled that if the
employeeAs right to due process is violated, his
dismissal becomes illegal regardless of the
e!istence of a just and authori#ed cause.
REINSTATEMENT 6 Restoration of the
employee to state from which one has been
removed or separated without loss of seniority
rights and other privileges.
WHAT HAPPENS IF THERE IS AN ORDER
OF REINSTATEMENT BT THE POSITION IS
NO LONGER AVAILABLEM If the position
previously occupied by the employee is no
longer available at the time of reinstatement, he
should be given a substantially euivalent
position.
I$ THERE IS NO SBSTANTIALLY
EFIVALENT POSITION! If no substantially
euivalent position is available, reinstatement
should not be ordered because that would in
effect compel the employer to do the impossible.
In such a situation, the employee should merely
be given separation pay of the one month salary
for every year of service *&=&,.
CIRCMSTANCES WHEN COMPANY MAY
NOT REINSTATE DESPITE ORDER OF
REINSTATEMENT
&. "ransfer of business ownershipB- "here is
no law reuiring a purchasing corporation to
absorb the employees of the selling corporation.
A fortiori, reinstatement of unjustly dismissed
employees CA%%." be enforced against the
new owner 7%$244 there is an e!press
agreement on the assumption of liabilities by
the purchasing corporation.
/. 6hen reinstatement is rendered impossible
due to the abolition of the positionB
1. 6hen the business has closed downB
). 3hysical incapacity of employee
5. ;octrine of 4trained -elations-6hen the
employer can no longer trust the employee
and vice-versa, reinstatement could not
effectively serve as a remedy. Applies only
to positions which reuire trust and
confidenceB or
7nder the circumstances where the
employment relationship has become so
strained to preclude a harmonious working
relationship, and that all hopes at reconciliation
are nil after reinstatement, it would be more
beneficial to accord the employee backwages
and separation pay.
BACKWAGES--elief given to an employee to
compensate him for lost earnings during the
period of his dismissal.
H,1 3,50-%'+! 7nder e!isting law,
backwages is computed from the time of the
illegal dismissal up to time of actual
reinstatement.
WHAT ARE INCLDED IN THE
COMPTATION OF BACKWAGES
&. transportation and emergency allowances
/. vacation or service incentive leave and sick
leave
1. &1
th
month pay.
8owever, facilities such as uniforms, shoes,
helmets and ponchos should %." be included
in the computation of backwages.

REASON= said items are given free, to
be used only during official tour of duty not for
private or personal use.
CIRCMSTANCES THAT PREVENT
AWARD OF BACKWAGES!
&. death of the employee
/. physical and mental incapacity
1. business reverses
). closure of business
5. reinstatement of dismissed employee
9. confinement in jail
SPECIAL LAWS
SOCIAL SECRITY SYSTEM
COVERAGE!
Compulsory upon all employees not
over 9> years of age and their employers
In case of domestic &'/0'(), their
monthly income shall not be less than one
thousand pesos
Any benefit already earned by the
employees under private benefit plans e!isting
at the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired and
shall continue to remain under the employerAs
management unless there is an e!isting
agreement to the contrary
Dilipinos recruited by foreign based
employers for employment abroad may be
covered by the 444 on a voluntary basis
Compulsory upon such self- employed
persons as may be determined by the
Commission including but not limited to the
following=
&. all self employed professionals
/. partners and single proprietors
1. actors and actresses directors
). professional athletes, coaches,
trainers
5. individual farmers and fishermen
EFFECTIVE DATE OF COVERAGE!
4hall take effect on the first day
of the operation with respect to the
employer and that of the employee on
the day of his employment
DEPENDENTS!
&. the legal spouse entitled by law to
receive support from the member
/. the legitimate, legitimated or legally
adopted and illegitimate child who is
unmarried, not gainfully employed
and has not reached /& years of
age or if /& years of age, he is
congenitally incapacitated or while
still a minor has been permanently
incapacitated and incapable of self-
support, physically and mentally and
1. the parent who is receiving regular
support from the member
EMPLOYER
Any person natural or juridical,
domestic or foreign, who carries on in
the 3hilippines, any trade business,
industry undertaking or activity of any
kind and uses the services of another
person who is under his orders as
regards the employment e!cept the
@overnment and any of its political
subdivisions, branches or
instrumentalities, including corporations
owned or controlled by the @overnment
4elf- employed person shall be both the
employer and employee at the same
time.
EMPLOYEE
Any person who performs
services for an employer in which either
or both mental and physical efforts are
used and who receives compensation
for such services, where there is an
employer- employee relationship.
BENEFICIARIES
"he dependent spouse until he or she
remarries, the dependent legitimate,
legitimated or legally adopted and
illegitimate children who shall be the
primary beneficiaries of the member,
3-.<I;2; that the dependent
illegitimate children shall be entitled to
5>J of the share of the legitimate,
legitimated or legally adopted children
In the absence of the
legitimated, legally adopted or legitimate
children, illegitimate children shall be
entitled to &>>J of the benefits.
In their absence, the dependent
parents who shall be the secondary
beneficiaries.
In the absence of all of the
foregoing, any person designated by the
covered employee as secondary
beneficiary
MEDICARE
COVERAGE!
All 444 members are covered under the
+edicare program. "otal 0'(5*n'n% disability,
unemployed partial permanent disability,
retirement pensioners and survivors of deceased
members of the 444 and their dependents are
also entitled to medical care benefits without
need of additional contributions
PERIOD OF ENTITLEMENT
"he member or pensioner is entitled to a
ma!imum of )5 days confinement in a hospital in
a given calendar year. 8is dependents are given
another set of )5 days to be shared among
themselves. 7nused benefits cannot be carried
over to the succeeding year.
GOVERNMENT SERVICE
INSRANCE SYSTEM
COMPLSORY MEMBERSHIP
Compulsory for all employees receiving
compensation who have not reached the
compulsory retirement age, irrespective of
employment status, e!cept members of the
Armed Dorces and the 3%3, subject to the
condition that they must settle first their financial
obligations with the @4I4 and contractuals who
have no employer and employee relationship
with the agencies they serve.
2!cept for the members of the Iudiciary
and constitutional commissions who shall have
life insurance only, all members of the @4I4
shall have life insurance, retirement and all other
social security protection such as disability,
survivorship, separation and unemployment
benefits.
COMPTATION OF SERVICE
"he computation of service for the
purpose of determining the amount of benefits
payable shall be from the date of the original
appointmentG election including periods of
service at different times under the authority of
the -epublic of the 3hilippines and those that
may be prescribed by the @4I4 in coordination
with the Civil 4ervice Commission.
All service credited for retirement,
resignation or separation for which
corresponding benefits have been awarded shall
be e!cluded in the computation of service in
case of reinstatement in the service of an
employer and subseuent retirement or
separation which is compensable.
NEMPLOYMENT OR INVOLNTARY
SEPARATION BENEFITS
+onthly cash payments euivalent to
5>J of the average monthly compensation shall
be paid to a permanent employee who is
involuntarily separated from the service due to
the abolition of his office or position usually
resulting from reorgani#ation.
RETIREMENT BENEFITS! CONDITIONS
FOR ENTITLEMENT
&. +ember has rendered at least &5
years of service
/. 8e is at least 9> years of age at the
time of retirement
1. 8e is not receiving a monthly
pension benefit from permanent
total disability
PERMANENT DISABILITY BENEFITS
+onthly income benefit for life eual to
the basic monthly pension effective from the
date of the disability. 3rovided=
&. 8e is in the service at the time of the
disability
/. If separated from service, he has
paid at least 19 monthly
contributions within the 5 year
period immediately preceding the
disability or has paid a total of at
least &?> monthly contributions prior
to the disability
7nless the member has reached the
minimum retirement age, disability benefits shall
be SSPENDED when=
&. he is reemployed
/. he recovers from his
disability as determined by
the @4I4, whose decision
shall be final and binding
1. he fails to present himself
for medical e!amination
when reuired by the @4I4
TEMPORARY DISABILITY BENEFITS
(5J of the current daily compensation
for each day or fraction thereof of temporary
disability benefit not e!ceeding &/> days in one
calendar year after e!hausting all sick leave
credits and collective bargaining agreement sick
leave benefits. 3-.<I;2;=
&. he is in service at the time of his
disability
/. if separated, he has rendered at
least 1 years of service and has
paid at least 9 monthly contributions
in the &/- month period immediately
preceding the disability
8.62<2-=
A member cannot enjoy
temporary total disability benefit and sick leave
pay simultaneously.
In no case shall it be less than
(> pesos a day.
SRVIVORSHIP BENEFITS!
7pon the death of a member, the
primary beneficiaries shall be entitled to=
survivorship pension, 3-.<I;2;=
a. member was in service at the time of his
deathA
b. if separated from service, has rendered
at least 1 years of service and paid 19
monthly contributions with the 5- year
period immediately preceding his death
or has paid a total of at least &?>
monthly contributions.
LIFE INSRANCE BENEFITS
All employees e!cept members of the
AD3 and the 3%3 shall be compulsorily covered
with life insurance.
PRESCRIPTION OF CLAIMS
Claims for benefits under the Act e!cept
for life and retirement shall prescribe after )
years from the date of the contingency.
?RISDICTION
@4I4 shall have the e!clusive and
original jurisdiction to settle any dispute arising
under the Act and any other laws administered
by the @4I4.
RA EI#2! PMIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT IF 1BB8P

Approved on >( Iune &''5 and took
effect on &5 Iuly &''5. As indicated in its title,
the law institutes the policies of overseas
employment and establishes a higher standard
of protection and promotion of the welfare of
migrant workers, their families, and of overseas
Dilipinos in distress.
GARANTEE OF PROTECTION FOR
OVERSEAS WORKERS
"he 4tate shall deploy overseas Dilipino
workers only in countries where the rights of
Dilipino migrant workers are protected. "he
government recogni#es any of the following as a
guarantee for the protection of the receiving
country of the rights of overseas Dilipino
workers=
&. It has e!isting labor and social laws
protecting the rights of migrant
workersB
/. It is a signatory to multilateral
conventions, declarations or
resolutions relating to the protection
of migrant workersB
1. It has concluded a bilateral
agreement or arrangement with the
government protecting the rights of
overseas Dilipino workersB and,
). It is taking positive, concrete
measures to protect the rights of
migrant workers.
?RISDICTION
- NLRC
-A ?>)/ has transferred to the %$-C
the jurisdiction over employer-employee cases
&. Mone# Claims.-, the La4or Ar4i"ers
o* "he Na"ional La4or Rela"ions Commission
0NLRC3 shall have the oriinal and e5clusi'e
&urisdic"ion to hear and decide, the claims arising
out of an emplo#er$emplo#ee rela"ionship or by
virtue of any law or contract involving Dilipino
workers for overseas deployment including
claims for actual, moral, e!emplary and other
forms of damages.
LIABILITIES
"he liability of the principalGemployer
and the recruitmentGplacement agency for any
and all claims under this section shall be &oin"
and se'eral. "he performance bond to be filed
by the recruitmentGplacement agency, as
provided by law, shall be answerable for all
money claims, or damages that may be awarded
to the workers. If the recruitmentGplacement
agency is a juridical being, the corporate officers
and directors and partners as the case may be,
shall themselves be jointly and solidarily liable
with the corporation or partnership for the
aforesaid claims and damages.
4uch liabilities shall continue during the entire
period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
POEA
"he 3.2A retains original and e!clusive
jurisdiction to hear and decide=
&. all cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entitiesB and,
/. disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Dilipino migrant workers.
T&('' M,n%&Q) P*4 n+'( RA EI#2
"he date the employment termination
occured is material. .n or after &5 Iuly &''5,
the law to apply is -A ?>)/.
7nder !ec"ion 67 o* RA 879:, a worker
dismissed from overseas employment without
just, valid or authori#ed cause as defined by law
or contract, is entitled to the full reimbursement
of his placement fee with interest at twelve
percent *&/J, per annum, plus his salary for the
une!pired portion of his employment contract or
for three *1, months for every year of the
une!pired term, whichever is LE!!.
VENE
A criminal action arising from illegal
recruitment shall be filed with the -"C of the
province or city where the offense was
committed or where the offended party actually
resides at the time of the commission of the
offense. "he court where the criminal action is
first filed shall acuire jurisdiction to the
e!clusion of other courts.
PRESCRIPTIVE PERIODS
Illegal recruitment cases under this Act
shall prescribe in five *5, yearsB provided,
however, "hat illegal recruitment cases involving
economic sabotage as defined herein shall
prescribe in twenty */>, years. (S'3. 12; R.A.
EI#2)
PROHIBITED ACTS IN THE
RECRITMENT AND PLACEMENT OF
WORKERS NDER THE LABOR CODE ARE
RETAINED NDER THE MIGRANT
WORKERS ACT WITH THE ADDITION OF
THE FOLLOWING!
&. Dailure to deploy employee without valid
reason
/. Dailure to reimburse e!penses incurred in
connection with his documentation and
processing in cases that deployment did not
take place
DIFFERENT FNDS CREATED NDER
THE LAW!
&. -epatriation fund
/. $oan @uaranty fund
1. $egal Assistance fund
). Congressional +igrant 6orkers 4cholarship
fund
GOVERNMENT AGENCIES MOBILI>ED!
&. ;DA
/. ;.$2
1. 3.2A
). .66A
GIDELINES ON THE RIGHT TO
ORGANI>E OF GOVERNMENT EMPLOYEES
(E. O. 1EI)
COVERAGE
-Applies to all employees of all
branches, subdivisions, instrumentalities and
agencies of the government, including
government- owned or controlled corporations
6I"8 original charters
All government employees can form,
join or assist employeesA organi#ations of their
own choosing for the furtherance and protection
of their interest. "hey can also form in
conjunction with appropriate government
authorities, labor- management committees,
works councils and other forms of workersA
participation schemes to achieve the same
objectives.
8igh- level employees whose functions
are normally considered as policy- making or
managerial or whose duties are of a highly
confidential nature shall not be eligible to join the
organi#ation of rank and file government
employees.
PROTECTION OF THE RIGHT TO
ORGANI>E
&. @overnment employees shall not be
discriminated against in respect of
their employment by reason of their
membership in employeesA
organi#ation or participation in the
normal activities of the organi#ation.
/. @overnment authorities shall not
interfere in the establishment,
functioning or administration of
government employeesA
organi#ation through acts designed
to place such organi#ation under the
control of the government authority
REGISTRATION
- @overnment employeesA
organi#ation shall register with the Civil
4ervice A%; the ;epartment of $abor
and 2mployment .
1"
TH
MONTH PAY LAW
(P.D. E81)
WHO ARE E=CLDED FROM
COVERAGE!
&. government employees
/. employees already receiving &1
th
month pay
1. household helpers
). employees paid purely on commission basis
WHAT CAN BE CONSIDERED AS 1"
TH
MONTH PAY!
&. Christmas bonus
/. +idyear bonuses
1. Cash bonuses
=. SOCIAL WELFARE LEGISLATION
COMPARATIVE CHART
SSS (RA 1191)) GSIS (RA E2B1 ECC (PD 929)
STATEMENT
OF POLICIES

"o establish, develop, promote and perfect a
sound and viable ta! e!empt social security
system suitable to the needs of the people which
shall provide employees and their beneficiaries
protection against the ha#ards of disability,
sickness, old age, death and other contingencies
resulting in loss of income or financial burden.

EMPLOYER 2mployers in private sector All government agencies and
instrumentalities , including @.CCs
All employers *private or public,
COVERAGE
COMPLSORY &. 2mployees not over 9> years of age and their
employers.
/. /. ;omestic helpers whose monthly income
is not less than 3&,>>>.>>.
1. 4elf-employed persons as determined by the
Commission = a, self-employed professionalsB
b, partners and single proprietorsB c, actors
and actresses, directors, etcB d, professional
athletes, coaches, trainers, etc. and e,
individual farmers and fishermen.
&. Compulsory for all employees
receiving compensation who have not
reached compulsory retirement age
irrespective of employment status.
YIncluding barangay and sanggunian
officials
Any person compulsorily covered
by @4I4 or 444
Any person employed as casual,
emergency, temporary, substitute
or contractual
VOLNTARY &. 4pouses who devote full time to managing of
household and family affairs, 7%$244 they
are also engaged in other vocation or
employment which is subject to
+A%;A".-E coverage.
/. /. Dilipinos recruited by foreign-based
employers for employment abroad.
1. 2mployees separated from employment by
paying "."A$ contribution *meaning = both
employer and employeeAs share,
BY-ARRANGEMENT
Any foreign government, international
organi#ation or their wholly owned instrumentality
+A" enter into agreement for the inclusion of
their employees 2MC23" those covered by their
own respective civil service retirement systems.
E=EMPTED
EMPLOYMENT
&. purely CA47A$ and not for purpose or
occupation of the employer.
/. 3erformed in an alien vessel by an employee
if he is employed when such vessel is outside
of the 3hilippines.
1. 0y the government of the 3hilippines or
instrumentality or agent thereof.
). Doreign government of international
organi#ation.
&. AD3
/. 3%3
1. Contractuals who have no employer
and employee relationship
Y +embers of the judiciary and the
Constitutional Commissions F life
insurance only
BENEFITS &. +onthly pension
/. ;ependentsA pension
1. -etirement
). ;eath 0enefits
5. 3ermanent ;isability benefits
9. Duneral
(. 4ickness
?. +aternity
&. $ife Insurance
/. -etirement
1. ;isability
). 4urvivorship
5. 4eparation
9. 7nemployment
Y $ife insurance for the members of the
judiciary and constitutional commissions.
BENEFICIARIES
PRIMARY &. ;ependent spouse until remarriage
/. ;ependent legitimate, legitimated or legally
adopted and illegitimate children
&. $egal, dependent spouse until
remarriage
/. ;ependent children F defines as the
legitimate, legitimated, legally
adopted child, including the
illegitimate child, who is unmarried,
not gainfully employed, not over the
age of majority, or is over the age of
majority but is incapacitated and
incapable of self-support.
SECONDARY &. In the absence of primary beneficiaries,
dependent parents
&. ;ependent parents
/. $egitimate descendants subject to the
restrictions on dependent children,
the legitimate descendants
CONTRIBTIONS &. 2mployerAs contributions
/. 2mployeesA contribution
1. @overnment contribution
&. 2mployerAs contribution
/. 2mployeeAs contribution
MODE
OF COLLECTION
&. Dor those with employees F 2mployee
contribution shall be deducted by the
employees based on an approved schedule.
2mployer shall remit 0."8 2+3$.E22 A%;
2+3$.E2- contribution to the system.
/. Dor self-employed F 4elf-employed shall pay
0."8 2+3$.E2- A%; 2+3$.E22
contributions to the system.
1. Dor government contribution F remitted to the
444 within the first &> days of each calendar
month following the month got which they are
applicable.
Y Contributions under this Act in case where an
employer refuses or neglects to pay the same
shall be collected by the 44 in the same manner
as ta!es are made collectable under the %ational
Internal -evenue Code.
&. "he employer shall deduct each
month from the salary or compensation of
each employee the contribution payment.
2mployer shall remit to the system within
&> days the 2mployer-2mployee
contributions.
PENALTIES &. Dalse statement or misrepresentation as to
any compensation as to any compensation
paid or received or whoever makes or causes
to be made any false statement of a material
fact in any claim for any benefit payable
under this Act F Art. &(/ of the -3C
*falsification be private individuals and
falsified documents,
/. .btaining or receiving any money or check
without being entitled thereto with intent to
defraud any covered employee, employer or
444 F fine of 35,>>>.>> to 3/>,>>>.>> and
imprisonment of 9 years and & day to &/
years or both.
1. 0uys, sells, offers for sale, uses, transfers,
takes or gives in e!change, or pledges or
give in pledge, e!cept as authori#ed in this
Act F fine of 35,>>>.>> to 3/>,>>>.>> or
imprisonment of 9 years and & day to &/
years or both.
). +akes, alters, forges or counterfeits any
stamps, coupon, ticket or other device
prescribed by the Commission, or uses, sells,
lends or in his possession any such altered,
forged, or counterfeited materials, or makes,
uses or sells or has in his possession any
materials used in the manufacture of such
stamp, coupon, ticket or book F fine of
35,>>>.>> to 3/>,>>>.>> or imprisonment of
9 years and & day to &/ years or both.
&. 3articipating directly or indirectly in
commission of fraud, collusion,
falsification or misrepresentation in
any transaction of the @4I4 F Article
&(/ of the -3C *Dalsification by
private individuals and use of falsified
documents,
/. -eceiving money or check involving
provision of this act, without being
entities with intent to defraud F fine of
35,>>>.>> to 3/>,>>>.> or
imprisonment of 9 years and & day to
&/ years or both.
1. -efusing to comply with the
provisions of this Act F fine of
35,>>>.>> to 3/>,>>>.>> or
imprisonment of 9 years and & day to
&/ years or both.
). Dailure to include in the annual
budget corresponding employer
contributions by finance officers,
treasurers, cashiers, etc. F 9 months
and & day to 9 years imprisonment
and a fine of 31,>>>.>> to 39,>>>.>>
and absolute perpetual
disualification from holding office.
5. +isappropriation or taking of funds
and property of the @4I4 for
purposes other than authori#ed in this
Act F Article /&( of -3C
5. Dails or refuses to comply with the provisions
promulgated by the Commission F fine of
35,>>>.>> ot 3/>,>>>.>> or imprisonment of
9 years and & day to &/ years or both.
9. +isappropriation of funds F penalties under
Article /&( of the -3C.
(. Dailure to remit the said deductions to the
444 within 1> days from date they become
due F Article 1&5 of the -3C *2stafa,.
*+alversation of public funds or
properties,.
9. Dor head of officers who fails or
refuses payment or remittance of
@4I4 payments within 1> days from
the time its demandable F
imprisonment of & year to 5 years and
fine of 3&>,>>>.>> to 3/>,>>>.>> and
aboslute perpetual disualification.
ENTITLED TO
RETIREMENT
BENEFITS
+ember has reached age of 9> or 95. .3"I.%A$. +ember meets the ff =
&. has worked for at least &5 years.
/. Is at least 9> years of age at time of
retirement, and
1. Is not receiving monthly pension
benefit from permanent total disability
C.+37$4.-E. +ember is 95 years
with at least &5 years of service *if
service is less than &5 years, he may be
allowed to continue in accordance with
Civil 4ervice -ules and -egulations.,
DISABILITIES DEEMED
PERMANENT TOTAL
&. Complete loss of sight in both eyes.
/. $oss of two limbs at or above the ankle or
wrist.
1. 3ermanent complete paralysis of two limbs.
). 0rain injury resulting in incurable imbecility or
insanity.
5. .ther cases determined by 444.
&. Complete loss of sight in both eyes.
/. $oss of two limbs at or above the
ankle or wrist.
1. 3ermanent complete paralysis of two
limbs.
). 0rain injury resulting in incurable
imbecility or insanity
5. .ther cases determined by @4I4.
&. "emporary total disability lasting
over &/> days.
/. Complete loss of sight in both
eyes.
1. $oss of limbs at or above the ankle
or wrist.
). 3ermanent complete paralysis of
two limbs.
5. 0rain injury resulting in incurable
imbecility or insanity.
9. .ther cases determined by
+edical ;irector of 444
DISABILITIES DEEMED
PERMANENT PARTIAL
Complete and permanent loss of use of a
digit, limb, ear *or both ears,, hearing in one or
both ears, or sight in one eye.
Complete and permanent loss of a
digit, limb, ear *or both ears,, hearing in
one or both ears, or sight in one eye.
Complete and permanent loss of
use of a digit, limb, ear *or both ears,,
hearing in one or both ears, or sight in
one eye.
SYSTEM E=CSED
FROM LIABILITY
Dor permanent disability in the ff. cases =
&. grave misconduct
/. notorious negligence
1. willful intent to kill self or another
). habitual into!ication
Dor all contingencies in the ff. cases =
&. into!ication
/. willful intent to injure or kill oneAs
self or another
1. notorious negligence
AMONT OF FNERAL
BENEFITS
3&/,>>>.>> 3&/,>>>.>> *to be raised to 3&?,>>>.>>
in year />>/,
3&>,>>>.>>
WHO PAYS
REMITTANCESM
2mployer and 2mployee
2mployer And 2mployee 2mployer
COVERAGE .ccurrence of contingency whether or not
work-connected.
.ccurrence of contingency whether or
not work-connected.
6ork-related illness or injury.
NOTICE
REFIREMENT
2mployee to notify employer within 5 days
from injury or illness*unless no longer
necessary under the e!ceptions,
2mployee to notify employer within
5 days from injury or illness *unless
it is no longer necessary under the
2mployer to notify 444 within 5 days from
notice.
e!ceptions,
2mployer to record the same in
logbook within 5 days from notice.
2mployer to notify 444 or @4I4
within 5 days from recording in
logbook.
EFFECT OF
ERRONEOS
PAYMENT
$egal And eligible claimant may still
demand benefits, without prejudice to
right of @4I4 to sue improper claimant.
444 absolved unless notified of other
claim prior to payment.
DISPTE SETTLEMENT &. Dile claim with 444.
/. Appeal to 4ocial 4ecurity Commission.
1. Appeal to CA.
). Appeal to 4C
&. Dile claim with @4I4.
/. Appeal to @4I4 0oard.
1. Appeal to CA.
). Appeal to 4C.
Y Appeals shall be governed by -ules )1
and )5 of the &''( -ules of Civil
3rocedure
&. Dile claim with 444 and @4I4.
/. Appeal to 2CC.
1. Appeal to CA
). Appeal to 4C
E=CLSIVENESS OF
BENEFITS
+ay Apply for same benefits in 2C, if in
private sector.
+ay not receive benefits for same
contingency under @4I4 offers more *he may
then receive deficiency,
6henever other laws provide similar
benefits for the same contingencies,
members who ualifies has option to
choose. If benefits chosen are less
than under @4I4, he may get the
difference.
8owever, with respect to work-
+ay apply for the same benefits
under 444, if in the private sector.
+ay apply for same benefits under
@4I4, if in public sector *applying
+a#o 4ugar Central vs CA case.
connected illness and injuries, he
may also recover in full under 2CC,
applying the +a#o 4ugar Central vs
CA case.
PRESCRIPTIVE
PERIODS
&> years from the time the right of action
accrues.
) years from date of contingency
e!cept life and retirement benefits

=I. CHART ON ?RISDICTION
B-('*- O$ L*.,(
R'/*%i,n)
G(i'2*n3' M*3&in'(4 V,/-n%*(4 A(.i%(*%i,n L*.,( A(.i%'(
(TRCCC-M)
NLRC
&. Inter-union dispute
/. Intra-union dispute
1. $abor +anagement
-elations e!cept
interpretation or
implementation of the
C0A
&. Interpretation or
implementation of the
C0A
/. Interpretation or
enforcement of
company personnel
policies
&. 7nresolved @rievances
/. Agreement on other
labor dispute*0argaining
deadlock, 7$3,
&. 7$3
/. "ermination ;isputes
1. -einstatement-with
cases involving wages
). Claims of damages
arising from 2-2
relationship
5. Cases involving
prohibited acts in strikes
&. Appellate jurisdiction
over $abor Arbiters
/. Injunction
1. Contempt
*A-". /9),
9. Claims arising from 2-2
relationship including
those of domestic
service, involving
amount e!ceeding
35,>>>.>
(. +igrant 6orker Cases