Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Office of the Vice President for Academic Affairs
COLLEGE OF ACCOUNTANCY AND FINANCE
Name of DEPARTMENT

COURSE TITLE REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

COURSE CODE LAW 20033

CREDIT UNITS 3 units or 3 hours/week

COURSE PREREQUISITE LAW 20023

COURSE DESCRIPTION BUSINESS LAWS AND REGULATION

Institutional Learning Outcomes Program Outcomes Course Outcomes

1. Creative and Critical Thinking Students are expected to develop creative and critical Students are expected to develop knowledge of the laws
Graduates use their imaginative as well as arational thinking in interpreting and/or applying the laws and that subject matter of the course and are expected to have a
thinking abilities to life situations in order to push they will develop skills in effectively articulating, conveying, deeper understanding of the subject laws. Consequently,
boundaries, realize possibilities, and deepen their and/or communicating the same. students are expected to develop a rational thinking abilities
interdisciplinary and general understanding of the world. in interpreting and/or applying the subject laws and that
2. Effective Communication they are articulate in communicating the same.
Graduates are proficient in the four macro skills in
communication (reading, writing, listening, and
speaking) and are able to use these skills in solving
problems. Making decisions, and articulating thoughts
when engaging with people in various circumstances.
3. Strong Service Orientation
Graduates exemplify the potentialities of an efficient,
well-rounded and responsible professional deeply
committed to service excellence
4. Community Engagement
Graduates take an active role in the promorion and
fulfillment of various advocacies (educational, social and
environmental) for the advancement of community
welfare.
5. Adeptness in the Responsible Use of Technology

5th Floor, Dome, PUP A. Mabini Campus, Anonas Street, Sta. Mesa, Manila 1016
Direct Line: 335-1752 | Trunk Line: 335-1787 or 335-1777 local 364, 365 and 263
Website: www.pup.edu.ph | lmlcafpup@gmail.com

THE COUNTRY’S 1 POLYTECHNICU st

 Graduates demonstrate optimized use of digital learning
abilities, including technical and numerical skills.
6. Passion to Lifelong Learning
Graduates are enabled to perform and function in the
society by taking responsibility in their quest toknow
more about the world through lifelong learning.
7. High Level of Leadership and Organizational Skills
Graduates are developed to become the best professionals
in their respective disciplines by manifesting the
appropriate skills and leaderships qualities.
8. Sense of Personal and Professional Ethics
Graduates show desirable attitudes and behavior either in
their personal and professional circumstances.
1. Sense of National and Global Responsiveness
Graduates’ deep sense of national compliments the need
to live in a global village where one’s culture and other
people culture are respected.
Course Plan

Week Topic Learning Outcomes Methodology Resources Assessment

First (1st) Introduction of the subjects. • The students will be apprised • On-line with advance copy • Full text of applicable laws • Brief summary of the topic
week of What laws are included for the subject: on the basic knowledge of the of the and its IRR (if applicable). and feedback reporting via
the 1.PDIC Law; laws covered by the outline/module/reading online.
course 2. Truth in Lending Act subject/topics. material. • Other textbooks on those
plan of 3. Secrecy of Bank Deposits and Unclaimed particular laws if available. • Reports per topic via online.
engagem Balances; • Will have an overview of the • Visual
ent with 4. AMLA Law; laws covered by the presentations/materials if • Existing jurisprudence. • Administer a short or long
5. Intellectual Property Law; subjects/topics and their available. quizzes and examinations.
the
6.Data Privacy Act; application.
student
7. Electronic and E-Commerce Act; and
8. Ease of Doing Business and Efficient
Delivery of Government Services Law.
9. Labor Laws
10. SSS Law

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2nd to PDIC Law (R.A. 3591 as amended by R.A. 9302 • Students will be apprised on -Do- PDIC Law (R.A. 3591 as -Do-
3rd week [August 12, 2004] and R.A. 9576 [April 29, the basics about PDIC. amended by R.A. 9302
2009]). [August 12, 2004] and R.A.
• The insurable interest and the 9576 [April 29, 2009]).
- Insurable deposit maximum liability of the
-Only Savings, Time, and other Special Types PDIC for each depositor.
of Cash Deposit but not Investment Deposit is
• They will have knowledge as
covered.
to what kind of deposits are
-Maximum coverage is Php500,000.00 for
covered, the requirements of
each depositor (not for each account). claims, and the sanctions
-Requirements for claims. against unsafe and unsound
-Sanctions against unsafe and unsound banking practices.
banking practices.

Truth in Lending Act (R. A. 3675) • Students will have knowledge -Do- Republic Act 3765 and its -Do-
as to the information they Implementing Rules and
State policy is to protect its citizens from a lack ought to know before taking Regulations (IRR)
of awareness of the true cost of credit to the out credits. Full disclosure of
user by assuring a full disclosure of such cost cost is necessary to whom
with a view of preventing the uninformed use credit is extended.
of credit to the detriment of the national
economy.

Basic information:

Any creditor shall furnish to each person to

whom credit is extended, prior to the
consummation of the transaction, a clear
statement in writing setting forth, to the
extent applicable and in accordance with rules
and regulations prescribed by the Board, the
following information:

(1) the cash price or delivered price of the

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 property or service to be acquired;
(2) the amounts, if any, to be credited as down
payment and/or trade-in;
(3) the difference between the amounts set
forth under clauses (1) and (2);
(4) the charges, individually itemized, which
are paid or to be paid by such person in
connection with the transaction but which are
not incident to the extension of credit;
(5) the total amount to be financed;
(6) the finance charge expressed in terms of
pesos and centavos; and
(7) the percentage that the finance bears to
the total amount to be financed expressed as
a simple annual rate on the outstanding
unpaid balance of the obligation.

4th to Secrecy of Bank Deposits and Unclaimed • Students will be apprised on -Do- Secrecy of Bank Deposits -Do-
5th week Balances Law (R.A. 1405). the basics of Secrecy of Bank and Unclaimed Balances Law
Deposits; (R.A. 1405).
• All deposits of whatever nature is covered
with banks or banking institutions in the • Unclaimed Balances
Philippines including investments in bonds particularly as to what kind of
issued by the Government of the Philippines, deposits are covered;
its political subdivisions and its
instrumentalities. • What are the instances
however when these deposits
• Exceptions: may be inquired into; and
1.when the examination is made in the course
of a special or general examination of a bank • The basic understanding of
and is specifically authorized by the unclaimed balances, and
Monetary Board after being satisfied that where these unclaimed
there is reasonable ground to believe that a balances go.
bank fraud or serious irregularity has been or
is being committed and that it is necessary to
look into the deposit to establish such fraud

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 or irregularity;
2.when the examination is made by an
independent auditor hired by the bank to
conduct its regular audit provided that the
examination is for audit purposes only and
the results thereof shall be for the exclusive
use of the bank;
3.upon written permission of the depositor;
4.in cases of impeachment;
5.upon order of a competent court in cases of
bribery or dereliction of duty of public
officials;
6.in cases where the money deposited or
invested is the subject matter of the
litigation.

• Unclaimed balances to include credits or

deposits of money, bullion, security or other
evidence of indebtedness of any kind, and
interest thereon with banks, buildings and
loan associations, and trust corporations in
favor of any person known to be dead or who
has not made further deposits or withdrawals
during the preceding ten years or more.

• Such unclaimed balances, together with the

increase and proceeds thereof, shall be
deposited with the Treasury of the
Philippines.
6th to AMLA Law (R.A. 9160 as amended by • The students are apprised of -Do- AMLA Law (R.A. 9160 as -Do-
7th week R.A.10365). the basics of the AMLA. amended by R.A.10365).
• The definition of terms.
• Definition of terms. • What are the unlawful
• Unlawful activities. activities.
• Covered Persons/Institutions/Transactions: • The coverage of the law.
(1) banks, non-banks, quasi-banks, trust • What are the suspicious

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 entities, and all other institutions and their transactions.
subsidiaries and affiliates supervised or • What are the money
regulated by the Bangko Sentral ng Pilipinas laundering offenses.
(BSP); • The need to comply with the
(2) insurance companies and all other record or reportorial
institutions supervised or regulated by the requirements.
Insurance Commission; and • The power of the Council.
(3) (i) securities dealers, brokers, salesmen, • The penal provisions in case
investment houses and other similar entities of violations.
managing securities or rendering services as
investment agent, advisor, or consultant, (ii)
mutual funds, close-end investment
companies, common trust funds, pre-need
companies and other similar entities, (iii)
foreign exchange corporations, money
changers, money payment, remittance, and
transfer companies and other similar entities,
and (iv) other entities administering or
otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable
objects, cash substitutes and other similar
monetary instruments or property supervised
or regulated by Securities and Exchange
Commission and Exchange Commission.

• Suspicious transactions.
• Money laundering offenses.
• Record keeping/reportorial requirements.
• Power of the Council.
8th to Intellectual Property Law (R.A. 8293 as • The students will be apprised -Do- Intellectual Property Law -Do-
9th week amended). of the basics of the (R.A. 8293 as amended) and
Intellectual Property Law its IRR.
• Patent particularly they will
Patentable Inventions. - Any technical solution understand what is patent.
of a problem in any field of human activity • What are the patentable
which is new, involves an inventive step and is inventions and which are not.

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industrially applicable. It may be, or may • They will know the meaning
relate to, a product, or process, or an of trademarks, service marks,
improvement of any of the foregoing. and trade names.
• When are trademarks, service
Non-Patentable Inventions. - marks, and trade names
1.Discoveries, scientific theories and registrable.
mathematical methods; • They will know what is the
2.Schemes, rules and methods of performing meaning of copyright and
mental acts, playing games or doing how copyright is protected.
business, and programs for computers;
3.Methods for treatment of the human or
animal body by surgery or therapy and
diagnostic methods practiced on the human
or animal body. This provision shall not
apply to products and composition for use in
any of these methods;
4.Plant varieties or animal breeds or essentially
biological process for the production of
plants or animals. This provision shall not
apply to micro-organisms and non-biological
and microbiological processes.
5.Aesthetic creations; and
6.Anything which is contrary to public order
or morality.

• Trademark, Service mark, and Trade name.

1.How acquired-The rights in a mark shall be
acquired through registration.
2. Principle of Idem sonans and dominancy
tests in determining infringement.

• Copyright
1.Literary and artistic works.
7.Works are protected by the sole fact of their
creation, irrespective of their mode or form
of expression, as well as of their content,
quality and purpose.

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10th Midterm Examinations.
week

11th to Data Privacy Act (R.A. 10173).
13th
week • “Processing” of data to include to any
operation or any set of operations performed
upon personal data including, but not limited
to, the collection, recording, organization,
storage, updating or modification, retrieval,
consultation, use, consolidation, blocking,
erasure or destruction of data. Processing
may be performed through automated means,
or manual processing, if the personal data are
contained or are intended to be contained in a
filing system”.
• The students will be apprised -Do- Data Privacy Act (R.A. 10173) -Do-
on the basics of the Data and its IRR.
Privacy Act and its IRR.
• Particularly they will know
the meaning of processing of
data, the limitations of
collecting data, and how the
data is managed.
• They will also know the
rights of the data subject, the
powers of the Commission,
and the penal provisions in
case of violations.

• Types of Information:
1. Personal information — refers to any
information whether recorded in a material
form or not, from which the identity of an
individual is apparent or can be reasonably and
directly ascertained by the entity holding the
information, or when put together with other
information would directly and certainly
identify an individual.”
2. Sensitive Personal Information — refers
to personal information (a) About an
individual’s race, ethnic origin, marital status,
age, color, and religious, philosophical or
political affiliations; (b) About an individual’s
health, education, genetic or sexual life of a
person, or to any proceeding for any offense
committed or alleged to have been committed
by such person, the disposal of such
proceedings, or the sentence of any court in
such proceedings; (c) Issued by government

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agencies peculiar to an individual which
includes, but not limited to, social security
numbers, previous or current health records,
licenses or its denials, suspension or
revocation, and tax returns; and (d)
Specifically established by an executive order
or an act of Congress to be kept classified.
3. Privileged information — refers to any and
all forms of data which under the Rules of
Court and other pertinent laws constitute
privileged communication. E.g. Lawyer-client;
doctor-patient; etc.
• Limitation in processing information:
In general it is prohibited to request and/or
record sensitive personal information.
Exceptions: [1] Consent - Where the person
has given permission for the information to be
recorded; [2] Pursuant to law - Where the
information is required by law and/or a court
order expressly requests the information due to
its relevancy in a legal matter; and [3] To
Protect Life/Safety - Where the person is not
able to provide consent but the information is
required to protect their life/safety/health.

• Basic principles adhered to in processing

data:
Transparency — “The data subject must be
aware of the nature, purpose, and extent of the
processing of his or her personal data,
including the risks and safeguards involved,
the identity of personal information controller,
his or her rights as a data subject, and how
these can be exercised. Any information and
communication relating to the processing of
personal data should be easy to access and

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 understand, using clear and plain language”
(Rule IV, Sec. 17(a), IRR-R.A. 10173).

Legitimate Purpose — “The processing of

information shall be compatible with a
declared and specified purpose which must not
be contrary to law, morals, or public policy”
(Rule IV, Sec. 17(b), IRR-R.A. 10173).

Proportionality — “The processing of

information shall be adequate, relevant,
suitable, necessary, and not excessive in
relation to a declared and specified purpose.
Personal data shall be processed only if the
purpose of the processing could not reasonably
be fulfilled by other means” (Rule IV, Sec.
17(c), IRR-R.A. 10173).

• Rights of data subject.

• Powers of the Commission [National Privacy
Commission (NPA)]
• Penal provisions for breach thereof.
14th to Electronic Commerce Act (R.A. 8792). • Students will be apprised of -Do- Electronic Commerce Act -Do-
15th the basics on E-Commerce (R.A. 8792) and its IRR.
week •General provisions. Act .
•Legal recognition and communication of • Particularly in Electronic
electronic messages and documents. Carriage of Goods and
•Electronic commerce in carriage of goods. Electronic Transactions in
•electronic transactions in government. Government.
• They will know the legal
recognition and
communication of electronic
messages and documents.
• They will know the electronic
transactions in government.

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 Ease of doing business and efficient delivery • Students will be apprised of -Do- Ease of doing business and -Do-
of government services law (R.A. 11032). the streamline procedure for efficient delivery of
issuance of local business government services law
• Prior law: This essentially a revamped permits, licenses, or (R.A. 11032) and its IRR.
version of 2007’s R.A. 9485 or the Anti-Red clearances.
Tape Act of 2007. • They will know the provision
• Definition of terms. on citizen’s charter, coverage
• Coverage: Applies to all government offices of the law, automatic
and agencies including LGUs, government- approval or extension of
owned and controlled corporations, and other permits and licenses.
government instrumentalities, whether • They will also know the
located in the Philippines or abroad, that accountability of heads of
provide services covering business and non- offices and agencies which
business related transactions. now includes even those
• Zero-Contact Policy government offices located
• Citizen’s charter. abroad.
• Accessing government services and
automatic approval or extension of permits
and licenses.
• Streamline procedures for the issuance of
local business licenses, clearances, and
permits.
• Accountability of heads of offices and
agencies.
16th to • Students will know the -Do- P.D. 442 and its -Do-
17th Labor Code of the Philippines (P. D. 442) minimum labor standards. Implementing Rules and
week • Students will understand that Regulations (IRR)
A. Employer-Employee Relationship: employees enjoy security of
Requisites: tenure and that they can only
be dismissed form service for
1. Control on the means and methods by
just and authorised causes.
which the work is accomplished.
2. Payment of wage
3. Power to hire
4. Power to dismiss

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B. Working Conditions and Rest Periods —
•Normal hours of work
- 8 hrs/6 days or 48 hours work week.
- Clinics/Hospitals 40 hour work week.

•GENERAL RULE: “NO WORK NO PAY”; “A FAIR

DAYS WAGE FOR A FAIR DAYS WORK”.
•Meal periods. (not less than sixty (60)
minutes time-off).
•Night shift differential. - 10% (between 10pm
to 6:00am).
•Overtime work. - 25%-regular; 30%-holiday
or rest day
•Undertime not offset by overtime.

C. Weekly rest periods —

•Right to weekly rest day. - 24 consecutive
hours after every six (6) consecutive normal
workdays.
•When employer may require work on a rest
day.
•Compensation for rest day, Sunday or holiday
work. – Rest day, holiday - 30%; 50% -
holiday work falls on the employee’s
scheduled rest day.

C. Holidays, SIL and Service Charges —

•Right to holiday pay. - All except
establishments regularly employing less
than ten (10) workers; 100% if worked.
•Service Incentive Leave (SIL)- 5 days if 1 year
service.
•Service charges. - 85% - employees; 15%

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 mngt; hotels, resto etc. Amended by R. A.
No. 11360 which provides that service
charges collected by hotels, restaurants and
other similar establishments be distributed
in full to all covered employees except
managerial employees. This took effect in
September 2019.

D. Leaves —
Days when employees may still be paid
despite their absence from work.
Leaves Under Law:
(1) Service Incentive Leave (SIL)
(2) Solo Parents' Leave
(3) Maternity Leave - R. A. 11210
What are the improvements under the
Expanded Maternity Leave Law?
Increase in Number of Days -

• 105 days of paid leave for a married woman

who gives birth.
• 120 days of paid leave for a single or
unmarried woman who gives birth.
• 60 days of paid leave for a married or single
woman who undergoes miscarriage or
emergency termination of pregnancy.
• Additional 30 days of unpaid leave is offered
as an option if you like to extend your
maternity leave.

• Up to 7 days of paid leave (taken from your

105 or 120 days) can be allocated to the
father of your child, whether you are married
to him or not, so he can help you care for
your baby.

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• In case the father is not available, a relative
within the 4th degree of consanguinity or the
current partner sharing the same household
with the mother can be chosen as alternate
caregiver.
• The same number of days for Normal
Delivery and Cesarean Section
105 days for a married mother, 120 days for a
single mother, whether normal or CS delivery.
• No More Limits

(4) Paternity Leave (R. A. 8187)

(5) Leaves under RA 9262
(6) Leaves under RA 9710

• Security of tenure.
• Regular and casual employment.
(1) the employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer, except:
(a) where the employment has been fixed for a
specific project or undertaking the completion
or termination of which has been determined at
the time of the engagement of the employee;
or
(b) where the work or service to be performed
is seasonal in nature and the employment is for
the duration of the season.
(2) any employee who has rendered at least
one year of service, whether such service is
continuous or broken, shall be considered a
regular employee with respect to the activity in
which he is employed and his employment
shall continue while such activity exists.

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• Probationary employment. Not to exceed six
(6) months from the date the employee
started working.
• Termination by employer
Just causes:
• Serious misconduct or willful
disobedience by the employee of the
lawful orders of his employer or
representative in connection with his
work;
• Gross and habitual neglect by the
employee of his duties;
• Fraud or willful breach by the employee
of the trust reposed in him by his
employer or duly authorized
representative;
• 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 authorized
representatives; and
• Other causes analogous to the foregoing.
Authorized causes:
• Closure of establishment and reduction of
personnel.
• Disease as ground for termination.

• Termination by employee.

SSS Law (R. A. 8282) Students will know the basic -Do- R. A. 8282 -Do-
knowledge on SSS Law and
• Compulsory coverage upon all employees not the corresponding benefits
over 60 years of age and their employers thereof.
• Self-employed
• Effective date for employer on the first day

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 of operation
• Effective date of employee on the first day of
employment
• Available benefits
1.Monthly pension
2.Dependent’s pension
3.Retirement benefits
4.Death benefits
5.Permanent disability benefits
6.Funeral benefit
7.Sickness benefit

18th Final Examinations.

week

Reading and References

PDIC law (R.A. No. 3591, as amended) and Maximum Deposit Insurance Coverage Act (R.A. No. 9576); AMLA (R.A. No. 9160, as amended and its IRR; Intellectual Property Law
(R.A. No. 8293 and its IRR; The Data Privacy Act (R.A. No. 10173 and its IRR); The E-Commerce Act (R.A. No. 8792 and its IRR); and Ease of Doing Business Act and Efficient Delivery of
Government Services Law (R.A. No. 11032); R. A. 3765; P.D. 442; R. A. 8282.

Course Grading System

Display and definition of the approved university grading system for the course

Classroom Policy
Teacher’s classroom policy with regards to attendance, participation, behavior, use of mobile phones, etc.

Consultation Time
Schedule of meeting with the teacher to discuss a particular problem with a student in order to provide advice.

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 Reviewed By:

Prepared By: ATTY. RITCHE I. ESPONILLA, Assistant Professor III, October 19, 2020

Name of teacher and signature with the teacher’s highest educational Name of the reviewer and signature with reviewer’s highest educational attainment/rank and
attainment/rank and date of preparation date of review

Noted By:

Name of the College Dean/Program Chair/Branch or Campus Academic Head and highest educational attainment and date of endorsement

Approved By:
Name of the Approving Official and Official’s highest educational attainment and date of approval

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