Labor Standards Law

Constitutional mandate

1. Art II Sec 18
2. Art XIII Sec 3
3. Art XIII Sec 14
4.

Basis of Labor legislation

1. Police Power
a. ART 128 – Visitorial and Enforcement power – anytime shall have access to employer’s records and premises
at any time of the day or night whenever work is being undertaken therein.
b. Power to assume Jurisdiction – Sec of Labor and Employment may assume jurisdiction over the dispute and
decide it
2. Social Justice – (Calalang vs Williams) The policy of social justice is not intended to countenance wrong doing
simply because it is committed by the underprivileged.
- Social Justice cannot be permitted to be refuge of scoundrels any more than can equity be an impediment to
the punishment of the guilty.
- Those who invoke social justice may do so only if their hands are clean and their motives blameless and not
simply because they happen to be poor.

Workers not covered by labor code

1. Gov’t employees – ART 219

- However, GOCC’s without original charter is under the jurisdiction of the DOLE and not the Civil Service
Commission
2. Employees of international organizations and intergovernmental bodies
- They cannot be sued in our courts
- Objective is to avoid the danger of partiality and interference by the host country in their internal workings
3. Water district employees- they are Quasi-GOCC’s

POEA

- Under EO 797 and EO 247, the POEA was established and mandated to assume functions of Overseas
Employment Development Board (ART 17), National Seamen Board, (Art 20) and _____ (Art 15)

Functions of POEA

1. Adjudicatory powers
2. Disciplinary Powers – revoke or cancel licenses

OWWA – Overseas Workers Welfare Administration

- Section 15, RA 8042

- OWWA, in coordination with appropriate agencies shall undertake the repatriation of workers in cases of
war, epidemics, disasters, or calamities, natural or man-made and other similar events
 NRCO – National Reintegration Center for OFW’s (NRCO)

- Created in the DOLE for returning Filipino Migrant workers which shall provide mechanism for their
reintegration into Philippine society, serve as a promotion house for their local employment and tap their
skills and potentials for national development

ART 16 – Private recruitment

- GR: no person or entity shall engage in the recruitment and placement of workers except those allowed by
law

Money claims of OFW’s Against their employers – Labor Arbiters of NLRC shall have original and exclusive jurisdiction to
hear and decide within ninety calendar days after filing of the complaint, the claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages.

Premature Termination of Employment Contract

- In case of termination of overseas employment without just, valid or authorized cause, workers shall be
entitled to full reimbursement of his placement fee
- SERRANO vs GALLANT (2009)
- Sameer vs Cabiles

Art 18 – ban on Direct hiring

- No employer may hire a Filipino worker for overseas employment except through the Boards and entities
authorized by Secretary of labor
EXCEPTIONS are direct hiring by
1. Members of diplomatic corps
2. International organizations
3. Other employers as may be allowed by the Sec of labor
4. Name hires – a worker who is able to secure an overseas employment opportunity with an employer
without the assistance or participation of any agency.

Art 21 – Foreign Service Role and Participation

- Provide ample protection to Filipino workers abroad, and labor attaches, the labor reporting officers duly
designated by the secretary of labor

ART 22 – Mandatory remittance of foreign exchange earnings

- Purpose is to procted the welfare of the families, dependents and other beneficiaries of OFW

Rate of Remittances

1. Seaman and mariners – 80%

2. Construction companies and workers – 70%
 3. Professional workers such as nurses, engineers – 70%

Consequence of non-remittance

1. Employer shall not be issued accreditations

2. Passports issued to Filipino Contract workers shall not be renewed after expiration
3. Renewal of employment contract will not be approved
4. No license or authority shall be issued to the agency

Art 28 Capitalization

- Up to 5 million
- 70 percent must be owned by PH citizens

License vs Authority

1. License – a document issued

2. Authority – private recruitment entity

Art 31- Bonds

Art 34 – Prohibited practices

- It shall be unlawful for any individual, entity, licensee, or holder of author

Art 38 – What is illegal recruitment?

- Any act of canvassing, enlisting, contracting, transporting, utlitizing, hiring or procuring workers and includes
referring, contract services, promising or advertising for employment abroad whether for profit or not

Economic Sabotage

- Syndicated Illegal recruitment – carried out by group of three or more persons conspiring or confederating
with on another
- Large scale illegal recruitment

Art 39 – penalties

1. Simple illegal recruitment – 12 – 20 years fine of 1 -2 million

2. Illegal recruitment deemed as economic sabotage – life imprisonment fine of 2 -5 million
- Maximum penalty shall be imposed if the person illegally recruited is less than 18 years of age

Prescription period

1. SIL – 5 years
 2. Illegal recruitment deemed as economic sabotage – 20 years

Venue – criminal action arising from illegal recruitment as defined herein shall be filed with the Regional Trial Court of
the province or city where the offense was committed or where the offended party actually resides at the same time of
the commission of the offense

BOOK 2

TESDA LAW – RA 7796 amended art 43 – 56 of the Labor Code

Learnership vs Apprenticeship

Apprentice – person undergoing training in an apprenticable occupation

Age of apprentice must not be lower by 15 years old

Art 61 –

Apprenticeship shall not exceed 6 months

Art 72 Apprentice without compensation

- Required in their curriculum for graduation

Working scholars –

Art 73 – Learner

- Those who are hired as trainees in a semi skilled or non apprenticeable workforce

Learners are hired when there are no experienced workers available

Salary of not less than 70 percent of the Minimum wage

Art 75 – Contents of learnership Agreement

Handicapped workers – those whose earning capacity is impared by age or physical or mental deficiency of injury

- May be employed when their employment is necessary to prevent curtailment of employment opportunities
Disabled persons – those suffering restriction or different abilities

Are allowed to hire disabled persons as apprentice?

- NO, you can only hire the disabled person as an apprentice if he is qualified as an apprentice

RA 9442

RA 11228 – Philhealth coverage is mandatory for PWD’s

Who are field personnel?

- Performing task away from the principal place of business or branch office of the employer

Are bus drivers field personnel?

Normal hrs of work?

- 8 hrs a day
- 6 days a week
- Can we compress? YES subject to agreement of the employer and employee

Art 84 – Hours worked

- All the time which an employee is required to be on duty or to be at a prescribed workplace

- All the time during which an employee is suffered or permitted work
- Rest periods of short duration are also hours worked

Waiting time

- If waiting time is an integral part of the work, then it is considered as working time

Working while on call

- An employee who is not required to leave work at his home or with company officials where he may be
reached is not working while

Working while sleeping

- Sleeping while on duty is compensable if the nature of the employees work allows sleeping without
interrupting or prejudicing work or when there is an agreement between the employee and his employer to
that effect

Night shift differential

 - Every employee shall be paid a night shift differential of not less than ten percent og his regular wage for
each hour performed starting from 10pm

Premium pay – the additional compensation required by law for work persformed within 8 hrs

Rules of over time

1. On Ordinary day – regular hourly rate plus 25% per hr

2. On Special holiday or rest day – hourly rate plus 30% per hour
3. On a regular holiday – overtime pay is plus 30% of the basic hourly rate which is 200%

Overtime work must be proven – not merely alleged

- Proven by the time record

Overtime work of seamen

- They are entitled overtime pay if they can prove that they have rendered overtime work

Art 88- Undertime not offset by Overtime

ART 91 – after 6 days work, an employee is entitled to a rest day of not less than 24 hrs

ART 93 – Work performed on any special holiday shall be paid an additional compensation of at least 30 percent of the
regular wage of the employee

- Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional
compensation of atleast fifty percent of his regular wage

Regular holidays

1. New Year
2. Maundy Thursday
3. Good Friday
4. Araw ng kagitingan
5. Labor day
6. Independence day
7. National heroes day
8. Eidul Fitr
9. Eidul Adha
10. Bonifacio day
11. Christmas day
12. Rizal Day
13. The day designated by law for holding a general election
Special Holidays

1. All saints day – Nov 1

2. Last day of the year – December 31
3. Ninoy Aquino day - Monday nearest august 21
4. Feast of immaculate conception

Two regular holidays falling on the same day

1. When araw ng kagitingan falls on the same day as Maundy Thursday or good Friday, a covered employee is
entitled to at least 200% of his basic wage ________

Holiday pay for private school teachers

- Jose Rizal college vs NLRC

Art 95 – Right to Service incentive leave

- Converted to cash if unused

ART 96 – Service charges, Amended by RA 11360

- Employees only, employers are not included

- Employers have no share in the service charge
- It shall form part of the wages
- It cannot be abolished by the employer

Supplements – extra remunerations

- Supplements are not deducted from wages

Facilities – include articles or services for the benefit of the employee or his family but shall not include tools of the
trade or articles of services primarily for the benefit of the employer

ART 100 – Prohiibition of elimination or diminution of benefits

Employees must be paid directly except

1. In cases of force majeur

2. For employee has died
Job Contracting

The Contractor carries on an independent business and undertakes the contract work on his own account udner his own
responsibility according to his own manner and method, free from the control and direction of his employer or principal
in all matters connected with the performance of the work

- Babas vs Lorenzo Shipping Corporation

Labor only contracting – prohibited by law

HOW TO END ENDO?

- Amend Art 296 of the Labor Code and make it illegal for employers to give a contract of employment which
is less than six months

Art 296 – Probationary Period

Wage distortion – a situation where an increase in the prescribed wage that results in the elimination or severe
contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills

Correction of Wage distortion

1. For Organized Establishments

a. The employer and union shall negotiate to correct the distortions
b. Any dispute arising from wage distorions shall be resolved through grievance procedure
c. If it remains unresolved, voluntary arbitration
2. For unorganized establishments

Art 126 – Prohibition agains injunction

Art 128 – may inspect work premises an any time of the day as long as there is work being performed

Maternity leave benefits

- All covered female workers in government and private sector, including those in the informal economy
regardless of the civil status
- Solo parent welfare act – the worker shall be granted an additional 15 days maternity leave with full pay

Unlimited pregnancy – maternity leave shall be granted to female workers in every instance of pregnancy
Paternity leave

- Must be married and actually cohabiting with the legal wife

- Allowing him not to report for work for 7 days for each felivery for the first 4 deliveries
- Continues to earn compensation
- His spouses has delivered a child
- If paternity is not availed, it is not convertible to cash

Solo parent welfare act

- In addition to leave privileges, parental leave of not more than 7 days granted to solo parents

Art 134 – stipulation against marriage

10 Days VAWC leave – victims under the said law shall be entitled to take a paid leave of absence up to ______

RA 10028 Establishment of Lactation Stations

RA 10911

ART 302- Retirement pay