OVERVIEW OF LABOR STANDARDS

Labor Standards is one of the fields of Labor Law, together with Labor Relations and
Social and Welfare Legislation.

We start first with the applicable laws.

What are the laws applicable or what are the laws involve in Labor Standards.

It is important for you identify in what specific law we can find labor standards which is
found in the Labor Code of the Philippines or the Presidential Decree 442 as amended.
It was an enactment during Martial Law years in 1974.

Whenever you are confronted with a contractual relationship, you have to know what
the law applicable is. Identify what is the law involve. After you have identified the law,
you have to understand whether or not the law is applicable or not. If it is applicable
then you apply the law on the given set of facts or circumstances.

STEPS:

1. You identify
2. You understand whether the applies or not
3. You apply the law

A problem may arise when you cannot identify what the law is and worse is, when you
cannot understand the law.

In understanding the law, you have to be guided with the interpretation made by the SC
on a given case. The SC, being the highest court of the law, is the final arbiter on
questions involving the law.

The interpretation and the application of the law if made by the SC will now form part
of our legal system.

The study of Labor Standards will involve not only the statute itself but likewise the rules
and regulations implementing the Law.

We have a Secretary of the Department of Labor and Employment (DOLE). The DOLE
Secretary exercises rule-making power or the power to promulgate rules and regulation
to implement the rule itself.

We also have to study the interpretation and application of the law as made by the SC
in various decided cases.
To complete the study of labor standards, you take into account not only the law itself
but as well as the implementing rules and regulation of the (IRR). The IRRs are a one
whole set promulgated by the DOLE Secretary.

For the decided cases or selected cases decided by the SC involving labor standards. It
is important that you have the codal provision as it will facilitate the easy finding and
reading of the statute itself. Try to secure the codal which also contains the IRRs. The
codal, IRRs and the SC decisions will give you a complete and comprehensive study on
Labor Standards.

Civil Law and RPC have no implementing rules.

The implementing rules in Labor Code are much longer. SC cases provide us primary
reference for better comprehension of Labor Standards.

We should also know the particular agency of the government that is in-charge of the
administration and enforcement of Labor Standard Laws.

Check when the labors laws and the implementing rules and regulations take effect. Do
they need publication of general circulation? Is that important. Once we know the
effectivity of the laws then we should know when these laws and rules and regulations
become valid and enforceable.

Check likewise the legislature that is in-charge with the passage of laws. Know what
exactly Congress does and how does it enact the labor statute.

The prior knowledge you have in Political and Constitutional Law will guide you.

On applicable laws in Module 1, we will study what is the basis in the enactment of
labor laws. What is the limitation in the enactment of labor laws?

You have come across the Police Power in Constitutional Law. Is it a basis in the
enactment of labor laws? Or is it a limitation in the enactment of labor laws?

What about the saying that “Those who have less in life should have more in law”? Is
there some basis that Social Legislation are important in the protection of the rights of
workers? Would Social Justice be considered a basis or a limitation in the enactment of
labor laws?

What about the doctrine of incorporation, wherein international conventions are made
part of our legal system? Do we have such a recognized principle here in the
Philippines? Do we have laws that are passed by Congress that were enacted on the
basis of the Doctrine of Incorporation?
Still on the topic, we have to know the so-called tripartism which involves the
government, the labor sector as well as the workers sector. What is the policy of the
State on Tripartism? In what specific provisions in labor code can we find tripartism
where it involves three parties?

How important is Tripartism? Under the Labor Code do we know the role and function
of the National Tripartite Industrial Peace Council? What about Tripartite Industrial
Peace Council at the regional or industry level? Do we have some organizations that are
existing which carry out the policy on Tripartism? For instance in Region 7?

We should also know the matter of looking at the interpretation and implementation of
labor laws. How do we interpret Labor Laws? Is it similar to taxation that it should be
strictly construed against the taxpayer? Should be labor laws be strictly construed
against workers? Or should it be strictly construed against the employer? Why do we
have a provision on interpretation that in case of doubt, the same should be resolved in
favor of labor? Does that mean that the capital and the labor do not stand in equal
footing? Or do they?

Then we proceed with basic principles. We have to read our Philippine Constitution.

Check what are the constitutional rights of the workers in relation to labor standards?

You may have come across with the term “Security of Tenure”.

Is Security of Tenure a right of the worker in relation to labor standards? What about
the participation of the workers in the fruits of production? Is that a right given to the
workers under the Constitution? In other words, we identify the specific constitutional
rights of the workers in relation to labor standards as well as the statutory rights in
relation to labor standards. Labor Standards Law can stand on its own.

We have to know what type of contractual relationship must exist in order for us to
apply labor standards law. Is it principal-contractor relationship? Is it principal-agent
relationship? Is it an employer-employee relationship? If the type of contractor
relationship is outside the coverage of the labor standards law, then we do not apply
the labor code.

We have to know the test in determining employer-employee relationship. We will have

to tackle the first of the four-fold test in determining employer-employee relationship.
We are referring to the “power to hire”. The power to select and engage a person as an
employee. This should be the first topic.

To whom does this power belong? Does it belong to the employer? Or does it belong to
the employee? And is the power to hire expressly found under the Labor Code? If yes,
what particular article of the Labor code can it be found? On the matter of exercising
this power to hire, is it absolute? Or is it subject to certain limitations or restrictions?
On this particular topic on the right to hire, you will be studying the specific provisions
of the labor code that regulate or restrict the power to hire. Identify it one by one. Know
how to apply the provision.

We will proceed with the special laws. Are there special laws that regulate or restrict the
power to hire? Example: in the employment of minors. Does the law allow? If you have a
establishment that operates in Cebu City, can you hire persons who are below 18? Is
there a restriction or a condition on your power to hire?

We also have to discuss the topic on wages and wage fixing. Once you have employed a
worker as your employee and there exist an employer-employee relationship, you
expect the worker to perform labor or to render service. Is the employer obliged to
compensate for the labor performed or services rendered? If yes, in what form? Is it in
the form of professional fee? Is it in the form of wages? Is it in the form of salary? Is
there a distinction between wages and salary?

We have to ask ourselves, if we are the employer, how much do we pay our workers? Is
there a law that sets how much we pay the worker? Is there a law that sets the payment
for rank-and-file? How much to pay a supervisor? How much to pay a manager in case
you employ these people?

How does the government fix the wages of the workers? Do we have a minimum wage
law? If there is, can we identify what government agencies are involved in the fixing of
wages? We have to study the composition of these agencies. Who are the members?
Who is the head of these agencies? We will also study the rules of procedure on the
step-by-step procedure on the fixing of wages.

For example, a certain group of workers or a labor union or a federation feel that the
prevailing wages in their particular region are not enough to sustain the workers’ decent
level of living, does the law allow these workers to file a petition for wage increase? If
yes, where do they file it? What are the step-by-step procedure? What is the
involvement of the employer, if any? In case the agency fixes the wages, what does it
issue? What kind of order? From that order, does the law provide an appeal? If yes, to
what agency can we appeal the fixing of wages? In that appellate agency, what are the
grounds that it will entertain to review an appeal from the fixing of wages?

We will have a special topic on wage distortion. When wages are fixed by virtue of a
wage order issued by the Regional Tripartite Wages and Productivity Board, there will
result a wage distortion. For example, in an establishment where there is a hierarchy of
positions with corresponding salary rates, like, rank-and-file, supervisor and the
manager, what about if there is a wage order fixing the wages and these wages in effect
overtake those employees who are higher in rank? Will that cause a wage distortion? If
there is wage distortion, what is the law that is applicable in resolving wage distortion?
What is the step-by-step procedure? Do we make distinction if the establishment is
organized or unionized or not? We go all the way to SC to resolve issues involving wage
distortion.

Whenever there are orders fixing wage distortion, we also have to know the liability of
the employer who fails or refuses to comply with wage orders. Is the employer held
accountable? If yes, what is the liability of the employer? Is it criminal? Civil?
Administrative? What agency of the government will hold these employers
accountable? Will it be the regular trial courts? Will it be the office of the President?

Next topic is on Wage enforcement and recovery. Once we know that wages are fixed
by the government, we want to know what is the mechanism or tools that are set up
under the labor code to ensure the enforcement of these wages. To ensure the recovery
of these wages. Do we have that mechanism or enforcement tools under the labor
code? You must have heard of labor inspection. Or if the labor inspection takes place in
an establishment, to what extent can they order the employer to comply with the wage
orders? If you are working for an establishment for example, despite of the issuance of a
wage order your employer does not comply with the wage order, can you file a
complaint with the government? If yes, what particular agency of the government is
involved? If you are just alone and you believe that you have a money claim against the
employer, can you file your complaint with the DOLE? Or should the complaint be filed
with the NLRC Arbitration branches?

Once we are done in determining what are the appropriate wages to be paid to the
workers once we are assured that the workers can seek proper redress in case the
employer fails or refuses to comply with wage orders, then we will discuss wage
protection provisions.

We will discuss on the topic on wage protection, provisions and prohibitions regarding
wages. For example, when you are earning your wages, can the employer interfere on
what you are going to do with your money? Can the employer tell you to give up a
portion of your salary and buy a cellphone? Does the law allow that? Can the employer
deduct from the worker’s wages, the cost of uniforms it provides to their workers? We
discuss the topic on wage discussion.

What about withholding of wages? Can the employer withhold the worker’s wages as a
form of settling the employee’s obligation to his employer? As a form of settling the
employee’s obligation to a third party? Is that allowed? If you testify against your
employer because your employer is violating labor law, does the labor code protect you
as a witness against your employer? Can you freely testify without being harassed?
Without being retaliated by your employer?

The next topic will be payment of wages. In what form should the workers’ wages be
paid? Can the employer pay the workers’ wages in the form of commodities? In the
form of a promissory note? Where will the workers’ wages be paid? Can the employer
pay the workers’ wages outside the principal office of the employer? If you are working
in the branch office, can the employer require you to report to the head office for
purposes of paying your wages?

We should also know whether the labors laws allow payment of wages through ATM. Is
that allowed? If the employer pays your wages through ATM, will that require individual
consent of the workers? Or no need? Does the Labor law allow the payment of workers’
wages in the form of a cheque? A personal cheque?

We proceed on the conditions of employment. We should know what is normal work

week? How many day are employees required to work in a week? Do they workers enjoy
a rest day? For how long do these workers enjoy a rest day? How many hours does a
rest day consist of? Is there such thing as compressed work week? What is compressed
work week? What are the guidelines laid down by the DOLE? For example on conditions
of employment, we should know what is meant by hours work? If an employee after his
hours of duty is required by the employer to standby? Would that be considered hours
work? If it is hours work, is it considered compensable hours work? What is the normal
hours work? What is the minimum hours of work? What is the maximum hours of work,
if any under the labor code?

We also take into account the provisions on coffee break? Or Rest period of short
duration. For example, the establishment allows you a coffee break, say 5 minutes to 10
minutes, would that be considered hours work? Or should the employer not pay you for
the time you spent drinking coffee in the establishment?

After that, we have minimum standards. If the employee is required to work beyond the
normal hours of work, is he entitled to additional compensation? Is that so-called
overtime pay? If yes, how much is the overtime pay if the work is rendered on the
ordinary working day? How much is the overtime pay if the work is rendered during a
holiday? If an employee is made to work on a special holiday? How would he be entitled
for additional compensation? Do we call that premium pay or overtime pay? Or
nightshift differential pay? If an employee is working in a service establishment is there
such a thing as payment of service charges? Do we know who are the employees
entitles to service charges in these types of service establishments, like hotels,
restaurants, and other similar service establishment? And how much is it? If workers are
made to work between the hours of 10PM to 6AM, say during a graveyard shift, would
they be entitled to additional compensation? If yes, what do we call this additional
compensation? How much would the additional compensation be? And what’s the
reason why there is a need to provide additional compensation.

We also have the holiday pay. What are the regular holidays in the Philippines? What
are the special holidays in the Philippines? August 31 for example. How do we classify
that holiday? Is it a regular holiday? Or is it a special holiday?

We will have to discuss likewise other special benefits—benefits that are provided
outside the labor code. Our first benefit there is the 13 th month pay. Are employees
entitled to 13th month pay? Why is it called 13th month? Is it because it goes beyond 12
months? And how much is the 13 th month pay? Are these given to all employees
including managers? Are there employees excluded from entitlement? If the employee
for example attempts to kill the employer, would he still be entitled to 13 th month pay?
What’s the purpose of the law?

For married male workers, who need to be beside their spouses at the time the latter
gives birth or suffers miscarriage, do they enjoy a leave benefit under the parental leave
act?

If you cannot bear a child naturally and decided to adopt a child and you take care of it,
are you entitled to the same benefits given to biological parents? Do we have a law that
provides these benefits? What about the employees who have reached the age of
retirement? Aside from the SSS law that provides retirement pay, do we have a
counterpart provision under the labor code? If yes, how much will the retirement pay
be? What is the component of the retirement pay? Is the employer allowed to get
contribution from the employee for purposes of paying retirement pay under the labor
code? What is the retirement age for mining employees? What is the retirement age for
race horse jockey?

A solo parent. Have you heard about the so-called parental leave? Who are considered
solo-parents? When will they be entitled to parental leave? Do they need to render
service for six month? Do they need to render service for one year? If a women
employee is battered by her partner, would she be entitled for a leave benefit? Under
what special law? What is the procedure in availing that leave benefit and long will that
leave benefit be? For what purpose?

For nursing employees, for those female employees who are lactating or breastfeeding
their infants or young child, is there a special law that extends to them certain
employment benefits? Is it mandatory to establish breastfeeding or lactation stations?
What is the consequence if none is provided by the employer?

We also have topics on drivers and conductors in the public utility transport industry. Is
there terms and conditions regulated by the DOLE? How are they paid? Are they paid in
the form of commissions? Does the law ensure that these drivers will not be reckless in
their driving in order to get more passengers and more income to themselves? What
are the safeguards placed by the existing department regulations? Would these
regulations be applicable to jeepney drivers who do not have conductors? Would it be
applicable to taxi drivers? Would it be applicable to tourist buses? To chartered buses?

The first part of this overview covers the applicable laws up to their special benefits.