SAN BEDA UNIVERSITY

COLLEGE OF LAW
Mendiola, Manila

LABOR STANDARDS

References:
The Labor Code with Comments and Cases by Cesario Azucena, Jr.
Volume 1 and the pertinent portions of Volume 2.
PD No. 442 The Labor Code, as amended, Omnibus Rules Implementing
the Labor Code, and pertinent Department Orders.

I. Constitutional Law principles in relation to Labor Law

A. Article XIII, Sec. 3 (1987 Constitution); Art. 3 and 266 (Labor
Code)
Manila Electric Co. v. Quisumbing, G.R. No. 127598, 27
January 1999.
B. Due process in labor cases
Agabon v. NLRC, G.R. No. 158693, 17 November 2004
Jaka Food Processing Corporation v. Pacot, G.R. No. 151378, 28
March 2005.
Abbot Laboratories v. Alcaraz, G.R. No. 192571, 23 July 2013.
C. Equal protection
Duncan Assoocation of Detailman-PTGWO v. Glaxo Wellcome,
G.R. No. 162994, 17 September 2004
Yrasuegui v. Philippine Airlines, G.R. No. 168081, 17 October
2008
D. Right to counsel
Manuel v. N.C. Construction Supply, G.R. No. 127553, 28
November 1997.
Punzal v. ETSI Technologies Inc., G.R. No. 170384, 9 March
2007.

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 Lopez v. Alturas Group of Companies, G.R. No. 191008, 11 April
2011.

E. Right against self-incrimination

Pascual v. Board of Medical Examiners, L-25018, 26 May 1969.
F. Right against unreasonable searches and seizures
Social Justice Society v. Dangerous Drugs Board and Philippine
Drug Enforcement Agency, G.R. No. 157870, 3 November 2008.
Pollo v. Constantino-David, G.R. No. 181881, 18 October 2011
II. Employer-employee relationship
A. Employee, defined (Art. 219)
B. Employer, defined (Art. 219)
C. Elements of an employer-employee relationship.
1. Selection
2. Payment of wages
3. Power to dismiss
4. Control
LVN Pictures Inc. v. Phil. Musicians Guild (110 Phil. 725)
Paguio Transport Corporation v. NLRC, G.R. No. 119500,
28 August 1998.
Teng v. Pahagac, G.R. No. 169704, 17 November 2010.
Dy Keh Beng v. International Labor, L-32245, 25 May
1979.
Insular Life Assurance Co. v. NLRC, G.R. No. 84484, 15
November 1989.
Tongko v. Manufacturer’s Life Insurance Company, G.R.
No. 167622, 29 June 2010 (See also: 25 January 2011
Resolution)
AFP Mutual Benefit Association v. NLRC, G.R. No.
102199, 28 January 1997.

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 Corporal v. NLRC, G.R. No. 129315, 2 October 2000, 341
SCRA 658.
Maraguinot v. NLRC, G.R. No. 120969, 22 January 1998,
284 SCRA 539.
Calamba Medical Center v. NLRC, G.R. No. 176484, 25
November 2008.
Jardin v. NLRC, G.R. No. 119268, 23 February 2000, 326
SCRA 299.
Sonza v. ABS-CBN Broadcasting Corporation, G.R. No.
138051, 10 June 2004.
ABS-CBN Broadcasting Corporation v. Marlyn Nazareno,
G.R. No. 164156, 26 September 2006.
Fulache v. ABS-CBN, G.R. No. 183810, 21 January 2010.
Begino v. ABS-CBN, G.R. No. 199166, 20 April 2015.
Orozco v. Court of Appeal, G.R. No. 155207, 13 August
2008.
Television And Production Exponents, Inc. v. Servaña,
G.R. No. 167648, 28 January 2008.
Tabang v. NLRC, G.R. No. 121143, 21 January 1997.
Francisco v. NLRC, G.R. No. 170087, 31 August 2006.
WPP Marketing Communications, Inc. et al. v. Galera,
G.R. No. 169207/G.R. No. 169239, 25 March 2010.
Matling Industrial v. Coros, G.R. No. 157802, 13 October
2010.
Malcaba v. Prohealth Pharma Philippines, G.R. No.
209085, 6 June 2018.
Republic v. Asiapro Cooperative, G.R. No. 172101, 23
November 2007.
III. Job Contracting and Labor-only Contracting
See: Art. 106-109, Labor Code; DOLE Department Order No. 174-
17; DOLE Department Circular No. 01-12; DOLE Department
Circular No. 001-17; and DOLE Department Order No. 150 Series
of 2016 (Security Guards).
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 See also: Department Order No. 18-A Series of 2011 and compare
with DO 174-17.
A. Legitimate Job Contracting
1. Trilateral relationship in legitimate contracting
Coca-Cola Bottlers v. Dela Cruz, G.R. No. 184977, 7
December 2009
Temic Automotive Philippines v. Temic Automotive Phils.
Inc. Employees Union – FFW, G.R. No. 186965, 23
December 2009.
Alviado v. Procter & Gamble, G.R. No. 160506, 9 March
2010.
2. Elements of legitimate contracting
Neri v. NLRC, G.R. Nos. 97008-09, 23 July 1993.
Vinoya v. NLRC, G.R. No. 126586, 2 February 2000.
San Miguel Corporation v. Semillano, G.R. No. 164257, 5
July 2010.
Baguio v, NLRC, G.R. No. 79004, 4 October 1991.
3. Mandatory registration requirement and effect of non-
registration.
San Miguel v. Semillano, G.R. No. 164257, 5 July 2010.
Consolidated Building Maintenance v. Asprec, G.R. No.
217301, 6 June 2018.
Mago v. Sun Power Manufacturing, G.R. No. 210961, 24
January 2018.
4. Liability of principal to the contractor’s employees
Jaguar Security and Investigation Agency v. Sales, G.R.
No. 162420, 22 April 2008.
5. Effects and liabilities arising from termination of an
employee of the contractor.
B. Labor-only Contracting
1. Elements of labor-only contracting

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 Coca-Cola Bottlers Philippines v. Agito, G.R. No. 179546,
13 February 2009
Garden of Memories Park v. NLRC, G.R. No. 160278, 8
February 2012.
Aliviado v. Procter & Gamble, G.R. No. 160506, 9 March
2010.
Manila Memorial Park v. Lluz, G.R. No. 208451, 3
February 2016
W.M. Manufacturing v. Dalag, G.R. No. 209418, 7
December 2015.
2. Effects of a finding of labor-only contracting.
Diamond Farms, Inc. v. Southern Philippines Federation of
Labor Workers, G.R. No. 173254, 13 January 2016.
C. Other prohibitions under DO 174.
1. Prohibited practices under D.O. 174.
2. Effects of such prohibited practices.
IV. Recruitment of Local and Migrant Workers.
A. Recruitment of Local Workers
See: Department Order No. 141-14: Revised Rules and
Regulations Governing Private Recruitment and Placement
Agency for Local Employment.
1. Qualifications for Licensure as a private recruitment and
placement agency.
2. Fees that may be collected.
3. Acts constituting illegal recruitment (See Art. 38)
4. Rules on replacement of recruited worker
B. Recruitment and Deployment of Overseas Workers
See: R.A. 8042 as amended by R.A. 10022 and the
Implementing Rules and Regulations of R.A. 10022.
People v. Panis, L-58674, 11 July 1990
1. Definition of “Overseas Filipino Worker”

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 2. Deployment of Migrant Workers
3. Illegal Recruitment (Art. 38 and Sec. 6 of RA 8042.)
a. Definition
b. Other prohibitions
c. Syndicated Illegal Recruitment
People v. Gallo, G.R. No. 187730, 29 June 2010
d. Large Scale Illegal Recruitment
People Dela Piedra, G.R. No. 121777, 24 January
2001
People v. Chua, G.R. No. 184058, 10 March 2010
e. Illegal recruitment as economic sabotage
f. Illegal recruitment and estafa
g. Persons criminally liable for illegal recruitment
h. Jurisdiction over illegal recruitment cases
David v. Marquez, G.R. No. 209859, 5 June 2017
4. Jurisdiction over disputes
Republic v. Principalia Management and Personnel
Consultants, G.R. No. 167639, 19 April 2006
Trans Action Overseas Corporation v. DOLE Secretary,
G.R. No. 109583, 5 September 1997
Stolt-Nielsen Transportation Group v. Medequillo, G.R.
No. 177498, 18 January 2012
Estate of Nelson Dulay v. Aboitiz Jebsen Maritime, G.R.
No. 172642, 13 June 2012
Santiago v. CF Sharp Crew Management, G.R. No.
162419, 10 July 2007
Industrial Personnel and Management Services v. De Vera,
G.R. No. 205703, 7 March 2016
5. Money claims
a. Solidary liability of principal and recruiter

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 Datuman v. First Cosmopolitan Manpower, G.R. No.
156029, 14 November 2008
Gagui v. Dejero, G.R. No. 196036, 23 October 2013
Sealanes Marine Services v. Dela Torre, G.R. No.
214132, 18 February 2015
Gargallo v. DOHLE Seafront Crewing, G.R. No.
215551, 17 August 2016
Princess Talent Center Production v. Masagca, G.R.
No. 191310, 11 April 2018
Powerhouse Staffbuilders International v. Rey, G.R.
No. 190203, 7 November 2016
b. Theory of imputed knowledge
Sunace International Management Services v. NLRC,
G.R. No. 161757, 25 January 2006
c. Extent of liability
Yap v. Thenamaris Ship Management, G.R. No.
179532, 30 May 2011
Sameer Overseas Placement Agency v. Cabiles, G.R.
No. 170139, 5 August 2014
Maersk-Filipinas Crewing v. Avestruz, G.R. No.
207010, 18 February 2015
6. Compulsory Insurance Coverage
7. Mandatory remittance of earnings
C. Direct hiring
D. Local Employment of Foreign Nationals (Art. 40-42, Labor
Code)
See: Department Order 186-17 – Revised Rules for the
Issuance of Employment Permits to Foreign Nationals
1. Criteria for granting an employment permit
2. Exemptions and exclusions from permit requirement
3. Validity of and renewal of permit

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 4. Grounds for denial of application for new or renewal of
permit
5. Grounds for cancellation or revocation of permit
V. Hours of Work
See pertinent provisions of the Labor Code and its Omnibus
Implementing Rules
A. Coverage and Exclusions
B. Normal hours of work
Rada v. NLRC, G.R. No. 96078, 9 January 1992
University of Pangasinan Faculty Union v. University of
Pangasinan, L-63122, 20 February 1984
1. Exception
a. Health personnel
See: Department Order No. 182-17
San Juan de Dios Hospital Employees Association v.
NLRC, G.R. No. 126383, 28 November 1997
2. Compressed Workweek
Department Advisory 02-2004
Department Advisory 02-2009
Department Advisory 04-2010
a. Conditions for validity
b. Effects of a compressed workweek
Philippine Graphic Arts v. NLRC, L-80737, 29 September
1988
Unicorn Safety Glass v. Basarte, G.R. No. 154689, 25
November 2004.
Linton Commercial v. Hellera, G.R. No. 163147, 10
October 2007.
Bisig Manggagawa sa Tryco v. NLRC¸ G.R. No. 151309,
15 October 2008.
C. Work interruption due to brownouts
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 See: Policy Instruction No. 36 dated 22 May 1978.
Durabilt Recapping Plant v. NLRC, G.R. No. 76746, 27 July
1987
D. Meal breaks
1. General rule
2. When compensable?
a. Conditions for validity
Pan American World Airways System v. Pan American
Employees Association, L-16275, 23 February 1961, 1 SCRA
527.
Sime Darby Pilipinas v. NLRC, G.R. No. 119205, 15 April 1998.
Philippine Airlines v. NLRC, G.R. No. 132805, 2 February 1999.
E. Idle time
F. Waiting time
Arica v. NLRC, G.R. No. 78210, 28 February 1989.
G. Commuting time and Travel time
H. Overtime work
1. Definition and nature of overtime work
Salazar v. NLRC, G.R. No. 109210, 17 April 1996
San Miguel Brewery v. Democratic Labor Union, L-18353,
31 July 1963
PAL Employees Savings and Loan Association v. NLRC,
G.R. No. 105963, 22 August 1996
2. Overtime pay
a. Components of overtime pay
Philippine National Bank v. Philippine National Bank
Employees Association, L-30279, 30 July 1982
b. Overtime pay rates
i. Ordinary days
ii. On a rest day or special day
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 iii. On a rest day which falls on a special day
iv. Overtime on a regular holiday
v. Overtime on a rest day which falls on a regular
holiday
3. Emergency overtime work
a. General rule
b. Exceptions when overtime work may be compelled
R.B. Michael Press v. Galit, G.R. No. 153510, 13
February 2008
4. Waiver of overtime pay
a. General rule
b. Exceptions
I. Rest days
1. Right to weekly rest day
2. When work on a rest day may be required
3. Premium pay for work rendered on a rest day
J. Holidays
1. Definition of a holiday
2. Holiday pay
a. Coverage
Union of Filipro Employees v. Vivar, G.R. No. 79256,
20 January 1992
Jose Rizal College v. NLRC, L-65482, 1 December 1987
Grand Asian Shipping Lines v. Galvez, G.R. No.
178184, 29 January 2014
San Miguel Corporation v. Court of Appeals, G.R. No.
146775, 30 January 2002
b. Rules on entitlement
c. Components of holiday pay

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 Chartered Bank Employees Association v. Ople, L-
44717, 28 August 1985
Wellington Investment v. Trajano, G.R. No. 114698, 3
July 1995
Producers Bank of the Philippines v. NLRC, G.R. No.
100701, 28 March 2001
Odango v. NLRC, G.R. No. 147420, 10 June 2004
Lim v. HMR Philippines, G.R. No. 201483, 4 August
2014
Asian Transmission Corporation v. Court of Appeals,
G.R. No. 144664, 15 March 2004
3. Premium pay for work rendered on holidays
K. Special Days
1. Coverage
2. Premium pay for work rendered on special holidays
L. Night work
See: Republic Act No. 10151 and DOLE Department Order No.
119-12
1. Coverage
2. Night worker, defined
3. Health assessment
4. Mandatory facilities
5. Transfers
6. Night shift differential pay
a. Definition
b. Coverage
c. Computation
i. Within regular work hours
ii. Within overtime hours

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 iii. Within work rendered on a rest day, special day,
or regular holiday
M. Service Incentive Leave
Fernandez v. NLRC, G.R. No. 105892, 28 January 1998
Auto Bus Transport v. Bautista, G.R. No. 156367, 16 May 2005
JPL Marketing v. Court of Appeals, G.R. No. 151966, 8 July 2005
David v. Macasio, G.R. No. 195466, 2 July 2014
Paloma v. Philippine Airlines, G.R. No. 148415, 14 July 2008
Sugue v. Triumph International, G.R. No. 164804, 30 January
2009
Soriano v. PNCC Skyway Corporation, G.R. No. 171231, 17
February 2010
VI. Wages
See: Republic Act No. 6727 and 8188; IRR of RA 6727.
Aklan Electric Cooperative v. NLRC, G.R. No. 121439, 25 January
2000.
Philex Gold Philippines v. Philex Bulawan Supervisors Union, G.R. No.
149758, 25 August 2005.
International School Alliance of Educators v. Quisumbing, G.R. No.
128845, 1 June 2000.
A. Definition of Wages
1. Minimum Wage
C Planas Commercial v. NLRC, G.R. No. 144619, 11
November 2005.
2. Wages vs. Salary
Rosario Gaa v. Court of Appeals, L-44169, 3 December
1985
B. Coverage
See: RA 9178 and corresponding IRR
C. Payments Due to the Employee

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 1. Basic Wage
Honda Philippines v. Samahan ng Malayang Manggagawa
sa Honda, G.R. No. 145561, 15 June 2005.
2. Cost of Living Allowance
3. Facilities and Supplements
a. Definition of “Supplements” and “Facilities”
b. Supplements and facilities, distinguished
c. Requisites for valid deduction of facilities from
basic wage.
Millares v. NLRC, 305 SCRA 500, (1999)
Mayon Hotel and Restaurant v. Adana, G.R. No.
157634, 16 May 2005.
SLL International v. NLRC, G.R. No. 172161, 2 March
2011
Our Haus Realty Development Corporation v. Parian,
G.R. No. 204651, 6 August 2014.
4. Commissions
Philippine Duplicators, Inc. v. NLRC, G.R. No. 110068, 11
November 1993.
Philippine Duplicators, Inc. v. NLRC, G.R. No. 110068, 15
February 1995.
Boie-Takeda Chemicals, Inc. v. De la Serna, G.R. No.
92174, 10 December 1993.
Iran v. NLRC, G.R. No. 121927, 22 April 1998.

Reyes v. NLRC, G.R. No. 160233, 8 August 2007.

Philippine Spring Water Resources v. Court of Appeals,
G.R. No. 205278, 11 June 2014.
5. Service Charges (Article 96 of the Labor Code as amended
by RA 11360); Department Order No. 206, Series of 2019.
6. Thirteenth Month Pay
a. Coverage and exclusions

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 b. Nature of 13th month pay
Central Azucarera de Tarlac v. Central Azucarera de
Tarlac Labor Union-NLU, G.R. No. 188949, 26 July
2010.
Honda Philippines v. Samahan ng Malayang
Manggagawa sa Honda, G.R. No. 145561, 15 June
2005.
Boie-Takeda Chemicals, Inc. v. De la Serna, G.R. No.
92174, 10 December 1993.
Philippine Duplicators, Inc. v. NLRC, G.R. No.
110068, 15 February 1995.
King of Kings Transport v. Mamac, G.R. No.
166208, 29 June 2007.
D. Non-diminution of benefits
1. Company Practice
Vergara v. Coca Cola Bottlers Philippines, G.R. No.
176985, 1 April 2013.
Arco Metal Products v. SAMARM-NAFLU, G.R. No.
170734, 14 May 2008
Metropolitan Bank v. NLRC, G.R. No. 152928, 18 June
2009
University of the East v. University of the East Employees
Association, G.R. No. 179593, 14 September 2011
Wesleyan University v. Wesleyan University Faculty and
Staff Association, G.R. No. 181806, 12 March 2014.
2. Bonuses
American Wire and Cable Daily Rated Employees Union v.
American Wire and Cable Co., G.R. No. 155059, 29 April
2005
Protacio v. Laya Mananghaya, G.R. No. 168654, 25 March
2009
Lepanto Ceramics v. Lepanto Ceramics Employees
Association, G.R. No. 180866, 2 March 2010.

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 Mega Magazine Publications v. Defensor, G.R. No.
162021, 16 June 2014
TSPIC Corporation v. TSPIC Employees Union, G.R. No.
163419, 13 February 2008.
Eastern Telecommunications v. Eastern Telecoms
Employees Union, G.R. No. 185665, 8 February 2012
E. Prohibitions regarding wages
1. Deductions from wages
Labor Advisory No. 11 Series of 2014
Department Order No. 195-18
a. When allowed
b. Conditions for validity
2. Interference in the disposal of wages
3. Wages exempt from execution or attachment
Rosario Gaa v. Court of Appeals, L-44169, 3 December
1985.
4. Requiring deposits
Five J Taxi v. NLRC, G.R. No. 111474, 22 August 1994.
Niña Jewelry v. Montecillo, G.R. No. 188169, 28
November 2011.
5. Withholding of wages
Special Steel Products v. Villareal, G.R. No. 143304. 8 July
2004.
Milan v. NLRC, G.R. No. 202961, 4 February 2015.
6. Deductions to ensure employment
7. Retaliatory acts by employer
8. False statements in a report or record
F. Wage Fixing
1. Criteria for fixing the minimum wage
2. Methods for fixing the minimum wage
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 a. Floor wage
b. Salary ceiling
Norkis Free and Independent Workers Union v.
Norkis Trading, G.R. No. 157098, 30 June 2005
3. Wage Distortion
a. Definition
b. Elements of wage distortion
Prubankers Association v. Prudential Bank, G.R. No.
131247, 25 January 1999.
Employer’s Confederation of the Philippines v. National
Wages and Productivity Commission, G.R. No. 96169, 24
September 1991.
Metropolitan Bank and Trust Co. Employees Union v.
NLRC, G.R. No. 102636, 10 September 1993.
Metro Transit Organization v. NLRC, G.R. No. 116008, 11
July 1995.
Bankard Employees Union v. NLRC, G.R. No. 140689, 17
February 2004.
Philippine Geothermal Employees Union v. Chevron, G.R.
No. 207252, 24 January 2018.
G. CBA in relation to Wage Orders
Filipinas Golf and Country Club v. NLRC, G.R. No. 62918, 23
August 1989.
Philippine Telegraph and Telephone Corporation v. NLRC, G.R.
No. 99858, 19 June 1995.
H. Worker Preference in Case of Bankruptcy
DBP v. NLRC, G.R. No. 82763, 19 March 1990.
DBP v. NLRC, G.R. No. 86227, 19 January 1994.
VII. Special Group of Workers

A. Women

See: Art. 130, 132-136, RA 7877, RA 9710

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 1. Prohibited acts under the Labor Code

Philippine Telegraph and Telephone Co. v. NLRC, G.R. No.

118978, 23 May 1997

Lakpue Drug v. Belga, G.R. No. 166379, 20 October 2005.

Del Monte v. Velasco, G.R. No. 153477, 6 March 2007.

Star Paper v. Simbol, G.R. No. 164774, 12 April 2006.

Leus v. St. Scholastica’s Collage, G.R. No. 187226, 28

January 2015

Capin-Cadiz v. Brent Hospital and Colleges, G.R. No.

187417, 24 February 2016.

Inocente v. St. Vincent Foundation, G.R. No. 202621, 22

June 2016.

Union School International v. Dagdag, G.R. No. 234186,

21 November 2018. See also: J. Jardeleza’s Separate
Opinion.

2. Anti-Sexual Harassment Act (RA 7877)

a. Acts punished

b. Persons liable

c. Duty of the employer

Libres v. NLRC, G.R. No. 123737, 28 May 1999.

Domingo v. Rayala, G.R. No. 155831, 18 February 2008.

3. Maternity Leave

See: RA 11210 Expanded Maternity Leave Law, IRR, and

Department Advisory 01-2019

a. Persons entitled to maternity leave benefit.

b. Requirements for availing of the benefit.

c. Extent of benefits granted.

d. Features of the maternity leave benefit.

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 4. Paternity Leave

See: RA 8187 and IRR

a. Persons entitled to paternity leave

b. Extent of benefits granted

c. Paternity leave in relation to Expanded Maternity

Leave Law.

5. Magna Carta for Women (RA 9710 and IRR)

a. Non-discrimination against women

b. Special Leave Benefit for gynecological surgery.

6. Solo Parent Leave

a. “Solo parent”, defined

b. Extent of benefit granted.

c. Conditions for entitlement.

7. VAWC Leave (RA 9262 and IRR)

B. Child Workers

See: RA 7610, RA 9231 and IRRs; Department Order No. 65-04,

Department Advisory No. 01-08, Department Circular No. 02-
2017, Department Order No. 02-2018.

1. “Working Child”, defined.

2. Working hours of a child.

3. Prohibited employment in certain undertakings.

4. Employment of Children below 15.

a. General Rule

b. Exceptions

C. Kasambahay

See: RA 10361 and IRR;

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 Apex Mining v. NLRC, G.R. No. 94951, 22 April 1991.

Barcenas v. NLRC, G.R. No. 87210, 16 July 1990.

1. Coverage and Exclusions.

Atienza v. Saluta, G.R. No. 233413, 17 June 2019

2. “Kasambahay” or “Domestic worker”, defined.

3. Employment

a. Mode of hiring and related expenses.

b. Pre-employment requirements

c. Necessity of written employment contract

4. Rights and privileges of a Kasambahay

a. Minimum wage

i. Wage rate

ii. Allowable deductions

iii. Rules on payment

iv. Non-interference

b. Hours of work and rest periods

c. Service incentive leave pay

d. 13th month pay

e. Coverage under SSS, PhilHealth, and Pag-IBIG

f. Standard of treatment

g. Board, lodging, and medical attendance

h. Privacy

i. Outside communication

j. Education and training

k. Forming, joining, assisting in a labor organization

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 l. Religious beliefs and cultural practices

5. Termination of employment

a. Termination of service

b. Termination by domestic worker

c. Termination by employer

D. Homeworker

E. Qualified Employees with Disability

RA 7277 as amended by RA 10524, Labor Advisory No. 14-2018

Bernardo v. NLRC, G.R. No. 122917, 12 July 1999.

1. Definition

2. Kinds of employment available

3. Employer incentives

F. Apprenticehsip

Nitto Enterprises v. NLRC, G.R. No. 114337, 29 September 1995.

Century Canning Corporation v. Court of Appeals

G. Learnership

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