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WAGES
1987 CONSTITUTION, ARTICLE XIII, SECTION 3
Labor
SECTION 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable
returns on investments, and to expansion and growth.
LABOR CODE: ARTICLES 218, 290 (AS AMENDED BY R.A. 10395)
ART. 218. [211] Declaration of Policy.
A. It is the policy of the State:
(a) To promote and emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and conciliation, as modes
of settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement of democracy
and the promotion of social justice and development
(c) To foster the free and voluntary organization of a strong and united labor movement;
(d) To promote the enlightenment of workers concerning their rights and obligations as
union members and as employees;
(e) To provide an adequate administrative machinery for the expeditious settlement of
labor or industrial disputes;
(f) To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policy-making processes
affecting their rights, duties and welfare.
B. To encourage a truly democratic method of regulating the relations between the employers
and employees by means of agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to set or fix wages, rates of pay,
hours of work or other terms and conditions of employment, except as otherwise provided
under this Code.
ART. 290. [275] Tripartism, Tripartite Conferences, and Tripartite Industrial Peace
Councils.
(a) Tripartism in labor relations is hereby declared a State policy. Towards this end, workers
and employers shall, as far as practicable, be represented in decision and policy-making
bodies of the government.
(b) The Secretary of Labor and Employment or his duly authorized representatives may from
time to time call a national, regional, or industrial tripartite conference of representatives
of government, workers and employers, and other interest groups as the case may be, for
the consideration and adoption of voluntary codes of principles designed to promote
industrial peace based on social justice or to align labor movement relations with
established priorities in economic and social development. In calling such conference, the
Secretary of Labor and Employment may consult with accredited representatives of
workers and employers.
(c) A National Tripartite Industrial Peace Council (NTIPC) shall be established, headed by
the Secretary of Labor and Employment, with twenty (20) representatives each from the
labor and employers’ sectors to be designated by the President at regular intervals. For
this purpose, a sectoral nomination, selection, and recall process shall be established by
the DOLE in consultation with the sectors observing the ‘most representative’
organization criteria of ILO Convention No. 144.
Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level shall also be
established with representatives from government, workers and employers to serve as a
continuing forum for tripartite advisement and consultation in aid of streamlining the role
of government, empowering workers’ and employers’ organizations, enhancing their
respective rights, attaining industrial peace, and improving productivity.
The TIPCs shall have the following functions:
1) Monitor the full implementation and compliance of concerned sectors with the
provisions of all tripartite instruments, including international conventions and
declarations, codes of conduct, and social accords;
2) Participate in national, regional or industry-specific tripartite conferences which the
President or the Secretary of Labor and Employment may call from time to time;
3) Review existing labor, economic and social policies and evaluate local and
international developments affecting them;
4) Formulate, for submission to the President or to Congress, tripartite views,
recommendations and proposals on labor, economic, and social concerns, including
the presentation of tripartite positions on relevant bills pending in Congress;
5) Advise the Secretary of Labor and Employment in the formulation or
implementation of policies and legislation affecting labor and employment;
6) Serve as a communication channel and a mechanism for undertaking joint programs
among government, workers, employers and their organizations toward enhancing
labor-management relations; and
7) Adopt its own program of activities and rules, consistent with development
objectives.
All TIPCs shall be an integral part of the organizational structure of the NTIPC.
The operations of all TIPCs shall be funded from the regular budget of the DOLE.
A. Concept and Definition
LABOR CODE: ARTICLES 97-98
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1. Non-plantation agriculture
ART. 97. Definitions. 2. Cottage/handicraft
As used in this Title: 3. Retail/Service regularly employing not more than 10 workers
a) "Person" means an individual, partnership, association, corporation, business trust, legal 4. Business enterprises with a capitalization of not more than P500,000 and employing
representatives, or any organized group of persons. not more than 20 workers.

b) "Employer" includes any person acting directly or indirectly in the interest of an
employer in relation to an employee and shall include the government and all its
branches, subdivisions and instrumentalities, all government-owned or controlled
corporations and institutions, as well as non-profit private institutions, or organizations.
c) "Employee" includes any individual employed by an employer.
d) "Agriculture" includes farming in all its branches and, among other things, includes
cultivation and tillage of soil, dairying, the production, cultivation, growing and
harvesting of any agricultural and horticultural commodities, the raising of livestock or
poultry, and any practices performed by a farmer on a farm as an incident to or in
conjunction with such farming operations, but does not include the manufacturing or
processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products.
e) "Employ" includes to suffer or permit to work.
f) "Wage" paid to any employee shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained
on a time, task, piece, or commission basis, or other method of 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, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily furnished by the employer
to the employee. "Fair and reasonable value" shall not include any profit to the employer,
or to any person affiliated with the employer.
SECTION 4. When Wage Increase Due Other Workers. —
a) All workers and employees who, prior to July 1, 1989, were already receiving a basic
wage above the statutory minimum wage rates provided under Republic Act 6640 but not
over P100.00 per day shall receive a wage increase equivalent to that provided in the
preceding Section.
b) Those receiving not more than the following monthly basic wage rates prior to July 1,
1989 shall be deemed covered by the preceding subsection:
i. P3,257.50 — where the workers and employees work everyday, including premium
payments for Sundays or rest days, special days and regular holidays.
ii. P3,041.67 — where the workers and employees do not work but considered paid on
rest days, special days and regular holidays.
iii. P2,616.67 — where the workers and employees do not work and are not considered
paid on Sundays or rest days.
iv. P2,183.33 — where the workers and employees do not work and are not considered
paid on Saturdays and Sundays or rest days.
c) Workers and employees who, prior to July 1, 1989, were receiving a basic wage of more
than P100.00 per day or its monthly equivalent, are not by law entitled to the wage
increase provided under the Act. They may however, receive wage increases through the
correction of wage distortions in accordance with Section 16, Chapter I of these Rules.

ART. 98. Application of Title.

This Title shall not apply to farm tenancy or leasehold, domestic service and persons working
in their respective homes in needle work or in any cottage industry duly registered in
accordance with law.

OMNIBUS RULES: BOOK III, RULE VII, SECTIONS 2-9

SECTION 2. Effectivity. — The Act takes effect on July 1, 1989, 15 days following its
complete publication in two newspapers of general circulation on June 15, 1989 pursuant to
Section 15 thereof.

SECTION 3. Amount of Minimum Wage Increase. — Effective July 1, 1989, the daily
statutory minimum wage rates of covered workers and employees shall be increased as
follows:
a) P25.00 for those in the National Capital Region;
b) P25.00 for those outside the National Capital Region, except for the following:

P20.00 for those in plantation agricultural enterprises with an annual gross sales of less
than P5 million in the fiscal year immediately preceding the effectivity of the Act;

P15.00 for those in the following enterprises:

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SECTION 5. Daily Statutory Minimum Wage Rates. —

The daily minimum wage rates of workers and employees shall be as follows: b) For those who do not work but considered paid on rest days, special days and regular
Sector/Industry      Under         Under  holidays:
                  R. A. 6640    R. A. 6727 
                  (Effective      (Effective  ADR x 365 days
                   Dec. 14,         July 1,  EMR = ————————
                    1987)            1989) 12

CURRENT DAILY MINIMUM WAGE RATES Where 365 days =

National Capital Region (NCR)   302 days Ordinary working days
Per Wage Order No. NCR-22   51 days Rest days
(Effective: 22 November 2018)  10 days Regular holidays
Sector/Industry Basic Wage/Integration Basic Wage New Minimum  2 days Special days
of COLA Increase Wage Rates 365 days Total equivalent number of days
Non-Agriculture ₱512.00 ₱25.00 ₱537.00
c) For those who do not work and are not considered paid on Sundays or rest days:
Agriculture ₱475.00 ₱25.00 ₱500.00
(Plantation and Non ADR x 314 days
Plantation) EMR = ———————
12
Retail/Service
Establishments Where 314 days =
employing 15 workers  302 days Ordinary working days
or less  10 days Regular holidays
Manufacturing  2 days Special days (If considered paid; If actually worked, this is
Establishments equivalent to 2.6 days)
regularly employing 314 days Total equivalent number of days
less than
10 workers d) For those who do not work and are not considered paid on Saturdays or rest days:
ADR x 262 days
EMR = ———————
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SECTION 6. Suggested Formula in Determining the Equivalent Monthly Statutory
Minimum Wage Rates. — Without prejudice to existing company practices, agreements or Where 262 days =
policies, the following formula may be used as guides in determining the equivalent monthly  250 days Ordinary working days
statutory minimum wage rates:
 10 days Regular holidays
 2 days Special days (If considered paid; If actually worked, this is
a) For those who are required to work everyday including Sundays or rest days, special days
and regular holidays: equivalent to 2.6 days)
262 days Total equivalent number of days
Equivalent Applicable daily wage rate (ADR) x 390.90 days
Monthly = ——————————————————— Note: For workers whose rest days fall on Sundays, the number of rest days in a year is
Rate (EMR) 12 reduced from 52 to 51 days, the last Sunday of August being a regular holiday under
Executive Order No. 201. For purposes of computation, said holiday, although still a rest day
Where 390.90 days = for them, is included in the ten regular holidays. For workers whose rest days do not fall on
Sundays, the number of rest days is 52 days, as there are 52 weeks in a year.
 302 days Ordinary working days
 20 days 10 regular holidays x 200%
Nothing herein shall be considered as authorizing the reduction of benefits granted under
 66.30 days 51 rest days x 130% existing agreements or employer practices/policies.
 2.60 days 2 special days x 130%
390.90 days Total equivalent number of days.

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SECTION 7. Basis of Minimum Wages Rates. — The statutory minimum wage rules
prescribed under the Act shall be for the normal working hours, which shall not exceed eight
hours work a day.
SECTION 8. Creditable Wage Increase. —
a) No wage increase shall be credited as compliance with the increases prescribed under the
Act unless expressly provided under collective bargaining agreements; and, such wage
increase was granted not earlier than April 1, 1989 but not later than July 1, 1989. Where
the wage increase granted is less than the prescribed increase under the Act, the employer
shall pay the difference.
b) b) Anniversary wage increase provided in collective agreements, merit wage increase,
and those resulting from the regularization or promotion of employees shall not be
credited as compliance thereto.
SECTION 9. Workers Paid by Results. —
a) All workers paid by results, including those who are paid on piecework, takay, pakyaw,
or task basis, shall receive not less than the applicable statutory minimum wage rates
prescribed under the Act for the normal working hours which shall not exceed eight hours
work a day, or a proportion thereof for work of less than the normal working hours.
The adjusted minimum wage rates for workers paid by results shall be computed in
accordance with the following steps:
1) Amount of increase in AMW - Previous AMW x 100 = % Increase;
2) Existing rate/piece x % increase = increase in rate/piece;
3) Existing rate/piece + increase in rate/piece = Adjusted rate/piece.
Where AMW is the applicable minimum wage rate.
b) The wage rates of workers who are paid by results shall continue to be established in
accordance with Article 101 of the Labor Code, as amended and its implementing
regulations.
B. Wage-Fixing
LABOR CODE: ARTICLES 99, 101, 120-127
ART. 99. Regional Minimum Wages.
The minimum wage rates for agricultural and non-agricultural employees and workers in each
and every region of the country shall be those prescribed by the Regional Tripartite Wages and
Productivity Boards.
ART. 101. Payment by Results.
(a) The Secretary of Labor and Employment shall regulate the payment of wages by results,
including pakyao, piecework, and other non-time work, in order to ensure the payment of fair
and reasonable wage rates, preferably through time and motion studies or in consultation with
representatives of workers’ and employers’ organizations.
ART. 120. Creation of National Wages and Productivity Commission. - There is hereby
created a National Wages and Productivity Commission, hereinafter referred to as the
Commission, which shall be attached to the DOLE for policy and program coordination. (As
amended by Republic Act No. 6727, June 9, 1989).
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ART. 121. Powers and functions of the Commission. - The Commission shall have the
following powers and functions:
a) To act as the national consultative and advisory body to the President of the Philippines
and Congress on matters relating to wages, incomes and productivity;
b) To formulate policies and guidelines on wages, incomes and productivity improvement at
the enterprise, industry and national levels;
c) To prescribe rules and guidelines for the determination of appropriate minimum wage
and productivity measures at the regional, provincial, or industry levels;
d) To review regional wage levels set by the Regional Tripartite Wages and Productivity
Boards to determine if these are in accordance with prescribed guidelines and national
development plans;
e) To undertake studies, researches and surveys necessary for the attainment of its functions
and objectives, and to collect and compile data and periodically disseminate information
on wages and productivity and other related information, including, but not limited to,
employment, cost-of-living, labor costs, investments and returns;
f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards
to determine whether these are consistent with national development plans;
g) To exercise technical and administrative supervision over the Regional Tripartite Wages
and Productivity Boards;
h) To call, from time to time, a national tripartite conference of representatives of
government, workers and employers for the consideration of measures to promote wage
rationalization and productivity; and
i) To exercise such powers and functions as may be necessary to implement this Act.
The Commission shall be composed of the Secretary of Labor and Employment as ex-officio
chairman, the Director-General of the NEDA as ex-officio vice-chairman, and 2 members each
from workers and employers sectors who shall be appointed by the President of the
Philippines upon recommendation of the Secretary of Labor and Employment to be made on
the basis of the list of nominees submitted by the workers and employers sectors, respectively,
and who shall serve for a term of 5 years. The Executive Director of the Commission shall
also be a member of the Commission.
The Commission shall be assisted by a Secretariat to be headed by an Executive Director and
2 Deputy Directors, who shall be appointed by the President of the Philippines, upon the
recommendation of the Secretary of Labor and Employment.
The Executive Director shall have the same rank, salary, benefits and other emoluments as that
of a Department Assistant Secretary, while the Deputy Directors shall have the same rank,
salary, benefits and other emoluments as that of a Bureau Director. The members of the
Commission representing labor and management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for labor and management
representatives in the Employees’ Compensation Commission. (As amended by RA No. 6727,
June 9, 1989).
ART. 122. Creation of Regional Tripartite Wages and Productivity Boards. There is hereby
created Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional
Boards, in all regions, including autonomous regions as may be established by law. The
Commission shall determine the offices/headquarters of the respective Regional Boards.
The Regional Boards shall have the following powers and functions in their respective
territorial jurisdictions:
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a) To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;
b) To determine and fix minimum wage rates applicable in their regions, provinces or
industries therein and to issue the corresponding wage orders, subject to guidelines issued
by the Commission;
c) To undertake studies, researches, and surveys necessary for the attainment of their
functions, objectives and programs, and to collect and compile data on wages, incomes,
productivity and other related information and periodically disseminate the same;
d) To coordinate with the other Regional Boards as may be necessary to attain the policy
and intention of this Code;
e) To receive, process and act on applications for exemption from prescribed wage rates as
may be provided by law or any Wage Order; and
f) To exercise such other powers and functions as may be necessary to carry out their
mandate under this Code.
Implementation of the plans, programs, and projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be through the respective regional offices of
the Department of Labor and Employment within their territorial jurisdiction; Provided,
however, That the Regional Boards shall have technical supervision over the regional office of
the Department of Labor and Employment with respect to the implementation of said plans,
programs and projects.
Each Regional Board shall be composed of the Regional Director of the Department of Labor
and Employment as chairman, the Regional Directors of the National Economic and
Development Authority and the Department of Trade and Industry as vice-chairmen and two
(2) members each from workers and employers sectors who shall be appointed by the
President of the Philippines, upon the recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term of five (5) years.
Each Regional Board to be headed by its chairman shall be assisted by a Secretariat.
ART. 123. Wage Order. Whenever conditions in the region so warrant, the Regional Board
shall investigate and study all pertinent facts; and based on the standards and criteria herein
prescribed, shall proceed to determine whether a Wage Order should be issued. Any such
Wage Order shall take effect after 15 days from its complete publication in at least 1
newspaper of general circulation in the region.
In the performance of its wage-determining functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees’ and employers’ groups, provincial, city
and municipal officials and other interested parties.
Any party aggrieved by the Wage Order issued by the Regional Board may appeal such order
to the Commission within 10 calendar days from the publication of such order. It shall be
mandatory for the Commission to decide such appeal within 60 calendar days from the filing
thereof.
The filing of the appeal does not stay the order unless the person appealing such order shall
file with the Commission, an undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by the order of the corresponding
increase, in the event such order is affirmed. (As amended by RA No. 6727, June 9, 1989).
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ART. 124. Standards/Criteria for minimum wage fixing. The regional minimum wages to be
established by the Regional Board shall be as nearly adequate as is economically feasible to
maintain the minimum standards of living necessary for the health, efficiency and general
well-being of the employees within the framework of the national economic and social
development program. In the determination of such regional minimum wages, the Regional
Board shall, among other relevant factors, consider the following:  
(a) The demand for living wages;
(b) Wage adjustment vis-a-vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of economic and
social development.
The wages prescribed in accordance with the provisions of this Title shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying with
industries, provinces or localities if in the judgment of the Regional Board, conditions make
such local differentiation proper and necessary to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other entity engaged in business shall
file and register annually with the appropriate Regional Board, Commission and the National
Statistics Office, an itemized listing of their labor component, specifying the names of their
workers and employees below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed in the employment
contracts, and their corresponding salaries and wages.
ART. 125. Freedom to Bargain. No wage order shall be construed to prevent workers in
particular firms or enterprises or industries from bargaining for higher wages with their
respective employers.
ART. 126. Prohibition Against Injunction. No preliminary or permanent injunction or
temporary restraining order may be issued by any court, tribunal or other entity against any
proceedings before the Commission or the Regional Boards.
ART. 127. Non-Diminution of Benefits. No wage order issued by any regional board shall
provide for wage rates lower than the statutory minimum wage rates prescribed by Congress.
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R.A. 6727
Republic Act No. 6727             June 9, 1989
AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY
ESTABLISHING THE MECHANISM AND PROPER STANDARDS THEREFOR,
AMENDING FOR THE PURPOSE ARTICLE 99 OF, AND INCORPORATING
ARTICLES 120, 121, 122, 123, 124, 126 AND 127 INTO, PRESIDENTIAL DECREE
NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES, FIXING NEW WAGE RATES, PROVIDING WAGE INCENTIVES
FOR INDUSTRIAL DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1. This Act shall be known as the "Wage Rationalization Act."  "(i) To exercise such powers and functions as may be necessary to implement this Act.
Section 2. It is hereby declared the policy of the State to rationalize the fixing of minimum
wages and to promote productivity-improvement and gain-sharing measures to ensure a decent
standard of living for the workers and their families; to guarantee the rights of labor to its just
share in the fruits of production; to enhance employment generation in the countryside through
industry dispersal; and to allow business and industry reasonable returns on investment,
expansion and growth.  submitted by the workers and employers sectors, respectively, and who shall serve for a term
The State shall promote collective bargaining as the primary mode of settling wages and other
terms and conditions of employment; and whenever necessary, the minimum wage rates shall
be adjusted in a fair and equitable manner, considering existing regional disparities in the cost
of living and other socio-economic factors and the national economic and social development
plans.  recommendation of the Secretary of Labor and Employment.
Section 3. In line with the declared policy under this Act, Article 99 of Presidential Decree
No. 442, as amended, is hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127
are hereby incorporated into Presidential Decree No. 442, as amended, to read as follows:  salary, benefits and other emoluments as that of a Bureau Director. The members of the
"Art. 99. Regional Minimum Wages. — The minimum wage rates for agricultural and non-
agricultural employees and workers in each and every region of the country shall be those
prescribed by the Regional Tripartite Wages and Productivity Boards." 
"Art. 120. Creation of the National Wages and Productivity Commission. — There is hereby
created a National Wages and Productivity Commission, hereinafter referred to as the
Commission, which shall be attached to the Department of Labor and Employment (DOLE)
for policy and program coordination." 
"Art. 121. Powers and Functions of the Commission. — The Commission shall have the
following powers and functions: 
"(a) To act as the national consultative and advisory body to the President of the Philippines
and Congress on matters relating to wages, incomes and productivity;  "(a) To develop plans, programs and projects relative to wages, incomes and
"(b) To formulate policies and guidelines on wages, incomes and productivity improvement at
the enterprise, industry and national levels; 
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"(c) To prescribe rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regional, provincial or industry levels;
"(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity
Boards to determine if these are in accordance with prescribed guidelines and national
development plans; 
"(e) To undertake studies, researches and surveys necessary for the attainment of its functions
and objectives, and to collect and compile data and periodically disseminate information on
wages and productivity and other related information, including, but not limited to,
employment, cost-of-living, labor costs, investments and returns; 
"(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards
to determine whether these are consistent with national development plans; 
"(g) To exercise technical and administrative supervision over the Regional Tripartite Wages
and Productivity Boards; 
"(h) To call, from time to time, a national tripartite conference of representatives of
government, workers and employers for the consideration of measures to promote wage
rationalization and productivity; and 
 
"The Commission shall be composed of the Secretary of Labor and Employment as ex-officio
chairman, the Director-General of the National Economic and Development Authority
(NEDA) as ex-officio vice-chairman, and two (2) members each from workers and employers
sectors who shall be appointed by the President of the Philippines upon recommendation of
the Secretary of Labor and Employment to be made on the basis of the list of nominees
of five (5) years. The Executive Director of the Commission shall also be a member of the
Commission. 
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and
two (2) Deputy Directors, who shall be appointed by the President of the Philippines, upon the
 
"The Executive Director shall have the same rank, salary, benefits and other emoluments as
that of a Department Assistant Secretary, while the Deputy Directors shall have the same rank,
Commission representing labor and management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for labor and management
representatives in the Employees' Compensation Commission. 
"Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. — There is hereby
created Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional
Boards, in all regions, including autonomous regions as may be established by law. The
Commission shall determine the offices/headquarters of the respective Regional Boards. 
"The Regional Boards shall have the following powers and functions in their respective
territorial jurisdiction:
productivity improvement for their respective regions; 
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"(b) To determine and fix minimum wage rates applicable in their region, provinces such order. It shall be mandatory for the Commission to decide such appeal within
or industries therein and to issue the corresponding wage orders, subject to sixty (60) calendar days from the filing thereof. 
guidelines issued by the Commission; 
"The filing of the appeal does not stay the order unless the person appealing such
"(c) To undertake studies, researches and surveys necessary for the attainment of order shall file with the Commission an undertaking with a surety or sureties
their functions, objectives and programs, and to collect and compile data on wages, satisfactory to the Commission for the payment to the employees affected by the
incomes, productivity and other related information and periodically disseminate the order of the corresponding increase, in the event such order is affirmed." 
same; 
"Art. 124. Standards/Criteria for Minimum Wage Fixing. — The regional minimum
"(d) To coordinate with the other Regional Boards as may be necessary to attain the wages to be established by the Regional Board shall be as nearly adequate as is
policy and intention of this Code;  economically feasible to maintain the minimum standards of living necessary for the
health, efficiency and general well-being of the employees within the framework of
"(e) To receive, process and act on applications for exemption from prescribed wage the national economic and social development program. In the determination of such
rates as may be provided by law or any Wage Order; and  regional minimum wages, the Regional Board shall, among other relevant factors,
consider the following: 
"(f) To exercise such other powers and functions as may be necessary to carry out
their mandate under this Code.  "(a) The demand for living wages; 
"(b) Wage adjustment vis-a-vis the consumer price index; 
"(c) The cost of living and changes or increases therein; 
Implementation of the plans, programs and projects of the Regional Boards referred to in the "(d) The needs of workers and their families; 
second paragraph, letter (a) of this Article, shall be through the respective regional offices of "(e) The need to induce industries to invest in the countryside; 
the Department of Labor and Employment within their territorial jurisdiction; Provided, "(f) Improvements in standards of living; 
however, That the Regional Boards shall have technical supervision over the regional office of "(g) The prevailing wage levels;
the Department of Labor and Employment with respect to the implementation of said plans, "(h) Fair return of the capital invested and capacity to pay of employers; 
programs and projects. "(i) Effects on employment generation and family income; and 
"(j) The equitable distribution of income and wealth along the imperatives
"Each Regional Board shall be composed of the Regional Director of the Department of Labor of economic and social development. 
and Employment as chairman, the Regional Directors of the National Economic and
Development Authority and the Department of Trade and Industry as vice-chairmen and two
(2) members each from workers and employers sectors who shall be appointed by the
President of the Philippines, upon the recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of nominees submitted by the workers and "The wages prescribed in accordance with the provisions of this Title shall be the
employers sectors, respectively, and who shall serve for a term of five (5) years.  standard prevailing minimum wages in every region. These wages shall include
wages varying within industries, provinces or localities if in the judgment of the
Regional Board conditions make such local differentiation proper and necessary to
"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat.  effectuate the purpose of this Title. 

"Art. 123. Wage Order. — Whenever conditions in the region so warrant, the
Regional Board shall investigate and study all pertinent facts; and based on the
standards and criteria herein prescribed, shall proceed to determine whether a Wage
Order should be issued. Any such Wage Order shall take effect after fifteen (15)
days from its complete publication in at least one (1) newspaper of general
circulation in the region.  who were hired under the terms prescribed in the employment contracts, and their
"In the performance of its wage determining functions, the Regional Board shall
conduct public hearings/consultations, giving notices to employees' and employers'
groups, provincial, city and municipal officials and other interested parties.
"Any party aggrieved by the Wage Order issued by the Regional Board may appeal
such order to the Commission within ten (10) calendar days from the publication of
"Any person, company, corporation, partnership or any other entity engaged in
business shall file and register annually with the appropriate Regional Board,
Commission and the National Statistics Office an itemized listing of their labor
component, specifying the names of their workers and employees below the
managerial level, including learners, apprentices and disabled/handicapped workers
corresponding salaries and wages. 
"Where the application of any prescribed wage increase by virtue of law or Wage
order issued by any Regional Board results in distortions of the wage structure
within an establishment, the employer and the union shall negotiate to correct the
distortions. Any dispute arising from wage distortions shall be resolved through the
grievance procedure under their collective bargaining agreement and, if it remains

7
 Zabala 3D 2021

unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in establishments regularly employing not more than ten (10) workers, and business enterprises
writing, such dispute shall be decided by the voluntary arbitrator or panel of with a capitalization of not more than five hundred thousand pesos (P500,000.00) and
voluntary arbitrators within ten (10) calendar days from the time said dispute was employing not more than twenty (20) employees, which are located or operating outside the
referred to voluntary arbitration.  NCR, shall be paid only an increase of fifteen pesos (P15.00): Provided, That those already
receiving above the minimum wage rates up to one hundred pesos (P100.00) shall also receive
"In cases where there are no collective agreements or recognized labor unions, the an increase of twenty-five pesos (P25.00) per day, except that the workers and employees
employers and workers shall endeavor to correct such distortions. Any dispute mentioned in the first exception clause of this Section shall also be paid only an increase of
arising therefrom shall be settled through the National Conciliation and Mediation twenty pesos (P20.00), and except further that those employees enumerated in the second
Board and, if it remains unresolved after ten (10) calendar days of conciliation, shall exception clause of this Section shall also be paid an increase of fifteen pesos (P15.00):
be referred to the appropriate branch of the National Labor Relations Commission Provided, further, That the appropriate Regional Board is hereby authorized to grant additional
(NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and increases to the workers and employees mentioned in the exception clauses of this Section if,
decide the dispute within twenty (20) calendar days from the time said dispute is on the basis of its determination pursuant to Article 124 of the Labor Code such increases are
submitted for compulsory arbitration.  necessary. 

"The pendency of a dispute arising from a wage distortion shall not in any way delay (b) The increase of twenty-five pesos (P25.00) prescribed under this Section shall apply to all
the applicability of any increase in prescribed wage rates pursuant to the provisions workers and employees entitled to the same in private educational institutions as soon as they
of law or Wage Order.  have increased or are granted authority to increase their tuition fees during school year 1989-
1990. Otherwise, such increase shall be so applicable not later than the opening of the next
school year beginning 1990. 
"As used herein, a wage distortion shall mean a situation where an increase in
prescribed wage rates results in the elimination or severe contraction of intentional
quantitative differences in wage or salary rates between and among employee (c) Exempted from the provisions of this Act are household or domestic helpers and persons
groups in an establishment as to effectively obliterate the distinctions embodied in employed in the personal service of another, including family drivers. 
such wage structure based on skills, length of service, or other logical bases of
differentiation.  Retail/service establishments regularly employing not more than ten (10) workers may be
exempted from the applicability of this Act upon application with and as determined by the
"All workers paid by result, including those who are paid on piecework, takay, appropriate Regional Board in accordance with the applicable rules and regulations issued by
pakyaw or task basis, shall receive not less than the prescribed wage rates per eight the Commission. Whenever an application for exemption has been duly filed with the
(8) hours work a day, or a proportion thereof for working less than eight (8) hours. appropriate Regional Board, action on any complaint for alleged non-compliance with this Act
shall be deferred pending resolution of the application for exemption by the appropriate
Regional Board. 
"All recognized learnership and apprenticeship agreements shall be considered
automatically modified insofar as their wage clauses are concerned to reflect the
prescribed wage rates."  In the event that applications for exemptions are not granted, employees shall receive the
appropriate compensation due them as provided for by this Act plus interest of one per cent
(1%) per month retroactive to the effectivity of this Act. 
"Art. 126. Prohibition Against Injunction. — No preliminary or permanent
injunction or temporary restraining order may be issued by any court, tribunal or
other entity against any proceedings before the Commission or the Regional (d) If expressly provided for and agreed upon in the collective bargaining agreements, all
Boards."  increases in the daily basic wage rates granted by the employers three (3) months before the
effectivity of this Act shall be credited as compliance with the increases in the wage rates
prescribed herein, provided that, where such increases are less than the prescribed increases in
"Art. 127. Non-diminution of Benefits. — No Wage Order issued by any Regional the wage rates under this Act, the employer shall pay the difference. Such increases shall not
Board shall provide for wage rates lower than the statutory minimum wage rates include anniversary wage increases, merit wage increases and those resulting from the
prescribed by Congress."  regularization or promotion of employees. 

Section 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all
workers and employees in the private sector, whether agricultural or non-agricultural, shall be
increased by twenty-five pesos (P25.00) per day, except that workers and employees in
plantation agricultural enterprises outside of the National Capital Region (NCR) with an
annual gross sales of less than five million pesos (P5,000,000.00) in the preceding year shall
be paid an increase of twenty pesos (P20.00), and except further that workers and employees
of cottage/handicraft industries, non-plantation agricultural enterprises, retail/service
Where the application of the increases in the wage rates under this Section results in
distortions as defined under existing laws in the wage structure within an establishment and
gives rise to a dispute therein, such dispute shall first be settled voluntarily between the parties
and in the event of a deadlock, the same shall be finally resolved through compulsory
arbitration by the regional branches of the National Labor Relations Commission (NLRC)
having jurisdiction over the workplace. 

8

It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute
arising under this Section within twenty (20) calendar days from the time said dispute is
formally submitted to it for arbitration. The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability of the increase in the wage rates
prescribed under this Section.  requirements necessary to implement this Act shall be included in the annual General
Section 5. Within a period of four (4) years from the effectivity of this Act and without
prejudice to collective bargaining negotiations or agreements or other employment contracts
between employers and workers, new business enterprises that may be established outside the
NCR and export processing zones whose operation or investments need initial assistance as
may be determined by the Department of Labor and Employment in consultation with the
Department of Trade and Industry or the Department of Agriculture, as the case may be, shall
be exempt from the applicability of this Act for not more than three (3) years from the start of
their operations: Provided, That such new business enterprises established in Region III
(Central Luzon) and Region IV (Southern Tagalog) shall be exempt from such increases only
for two (2) years from the start of their operations, except those established in the Provinces of
Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora,
which shall enjoy such exemption for not more than three (3) years from the start of their
operations.  he shall be preferentially considered for employment in the government or in any of its
Section 6. In the case of contracts for construction projects and for security, janitorial and
similar services, the prescribed increases in the wage rates of the workers shall be borne by the
principals or clients of the construction/service contractors and the contract shall be deemed
amended accordingly. In the event, however, that the principal or client fails to pay the
prescribed wage rates, the construction/service contractor shall be jointly and severally liable
with his principal or client.  (P25,000.00) and/or imprisonment of not less than one (1) year nor more than two (2) years:
Section 7. Upon written permission of the majority of the employees or workers concerned, all
private establishments, companies, businesses, and other entities with twenty five (25) or more
employees and located within one (1) kilometer radius to a commercial, savings or rural bank
shall pay the wages and other benefits of their employees through any of said banks and within
the period of payment of wages fixed by Presidential Decree No. 442, as amended, otherwise
known as the Labor Code of the Philippines.  manager, managing director or partner.
Section 8. Whenever applicable and upon request of a concerned worker or union, the bank
shall issue a certification of the record of payment of wages of a particular worker or workers
for a particular payroll period. 
Section 9. The Department of Labor and Employment shall conduct inspections as often as
possible within its manpower constraint of the payroll and other financial records kept by the
company or business to determine whether the workers are paid the prescribed minimum wage
rates and other benefits granted by law or any Wage Order. In unionized companies, the
Department of Labor and Employment inspectors shall always be accompanied by the
president or any responsible officer of the recognized bargaining unit or of any interested
union in the conduct of the inspection. In non-unionized companies, establishments or
businesses, the inspection should be carried out in the presence of a worker representing the
workers in the said company. The workers' representative shall have the right to submit his
own findings to the Department of Labor and Employment and to testify on the same if he
cannot concur with the findings of the labor inspector. 
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Section 10. The funds necessary to carry out the provisions of this Act shall be taken from the
Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings
under the Republic Act No. 6688, otherwise known as the General Appropriations Act of
1989, or from any unappropriated funds of the National Treasury: Provided, That the funding
Appropriations Act for the succeeding years. 
Section 11. The National Wages Council created under Executive Order No. 614 and the
National Productivity Commission created under Executive Order No. 615 are hereby
abolished. All properties, records, equipment, buildings, facilities, and other assets, liabilities
and appropriations of and belonging to the abovementioned offices, as well as other matters
pending therein, shall be transferred to the Commission. All personnel of the above abolished
offices shall continue to function in a holdover capacity and shall be preferentially considered
for appointments to or placement in the Commission. 
Any official or employee separated from the service as a result of the abolition of office
pursuant to this Act shall be entitled to appropriate separation pay and retirement and other
benefits accruing to them under existing laws. In lieu, thereof, at the option of the employee,
subdivisions, instrumentalities, or agencies, including government-owned or controlled
corporations and their subsidiaries.
Section 12. Any person, corporation, trust, firm, partnership, association or entity which
refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in
accordance with this Act shall be punished by a fine not exceeding twenty five thousand pesos
Provided, That any person convicted under this Act shall not be entitled to the benefits
provided for under the Probations Law. 
If the violation is committed by a corporation, trust or firm, partnership, association or any
other entity, the penalty of imprisonment shall be imposed on the entity's responsible officers,
including, but not limited to, the president, vice-president, chief executive officer, general
 
Section 13. The Secretary of Labor and Employment shall promulgate the necessary rules and
regulations to implement the provisions of this Act. 
Section 14. Al laws, orders, issuances, rules and regulations or parts thereof inconsistent with
the provisions of this Act are hereby repealed, amended or modified accordingly. If any
provision or part of this Act, or the application thereof to any person or circumstance, is held
invalid or unconstitutional, the remainder of this Act or the application of such provision or
part thereof to other persons or circumstances shall not be affected thereby. 
Nothing in this Act shall be construed to reduce any existing wage rates, allowances and
benefits of any form under existing laws, decrees, issuances, executive orders, and/or under
any contract or agreement between the workers and the employers.
9

Section 15. This Act take effect fifteen (15) days after its complete publication in the Official
Gazette or in at least two (2) national newspapers of general circulation, whichever comes
earlier. Approved: June 9, 1989
 R.A. 8188
Republic of the Philippines Congress of the Philippines Metro Manila
First Special Session
Begun and held in Metro Manila on Friday the seventh day of June nineteen hundred and
ninety-six.
REPUBLIC ACT NO. 8188
AN ACT INCREASING THE PENALTY AND INCREASING DOUBLE INDEMNITY
FOR VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN THE
WAGE RATES, AMENDING FOR THE PURPOSE SECTION TWELVE OF
REPUBLIC ACT NUMBERED SIXTY-SEVEN HUNDRED TWENTY-SEVEN,
OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred twenty-seven is
hereby amended to read to as follows:
"Section 12. Any person, corporation, trust, firm, partnership, association or entity which
refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in
accordance with this Act shall be punished by a fine not less than Twenty- five thousand pesos
(P25,000) nor more than One hundred thousand pesos (P100,000) or imprisonment of not less
than two (2) years nor more than four (4) years, or both such fine and imprisonment at the
discretion of the court: Provided, That any person convicted under this Act shall not be
entitled to the benefits provided for under the Probation Law.
"The employer concerned shall be ordered to pay an amount equivalent to double the unpaid
benefits owing to the employees: Provided, That payment of indemnity shall not absolve the
employer from the criminal liability imposable under this Act.
"If the violation is committed by a corporation, trust or firm, partnership, association or any
other entity the penalty of imprisonment shall be imposed upon the entity's responsible
officers, including, but not limited to, the president, vice-president, chief executive officer,
general manager, managing director or partner."
SECTION 2. All laws, presidential decrees, executive orders, rules and regulations or parts
thereof inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.
SECTION 3. This Act shall take effect fifteen (15) days after its complete publication in a
newspaper of general circulation.
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R.A. 9178
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand
two.
Republic Act No. 9178             November 13, 2002
AN ACT TO PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO
BUSINESS ENTERPRISES (BMBEs), PROVIDING INCENTIVES AND BENEFITS
THEREFOR, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled.
PRELIMINARY PROVISIONS
Section 1. Short Title – This Act shall be known as the "Barangay Micro Business Enterprises
(BMBE's) Act of 2002."
Section 2. Declaration of Policy – It is hereby declared to be the policy of the State to hasten
the country's economic development by encouraging the formation and growth of barangay
micro business enterprises which effectively serve as seedbeds of Filipino entrepreneurial
talents, and intergranting those in the informal sector with the mainstream economy, through
the rationalization of bureaucratic restrictions, the active granting of incentives and benefits to
generate much-needed employment and alleviate poverty.
Section 3. Definition of Terms – As used in this Act, the following terms shall mean:
(a) "Barangay Micro Business Enterprise," hereinafter referred to as BMBE, refers to any
business entity or enterprise engaged in the production, processing or manufacturing of
products or commodities, including agro-processing, trading and services, whose total assets
including those arising from loans but exclusive of the land on which the particular business
entity's office, plant and equipment are situated, shall not be more than Three Million Pesos
(P3,000,000.00) The Above definition shall be subjected to review and upward adjustment by
the SMED Council, as mandated under Republic Act No. 6977, as amended by Republic Act
No. 8289.
For the purpose of this Act, "service" shall exclude those rendered by any one, who is duly
licensed government after having passed a government licensure examination, in connection
with the exercise of one's profession.
10

(b) "Certificate of Authority" is the certificate issued granting the authority to the registered
BMBE to operate and be entitled to the benefits and privileges accorded thereto.
(c) "Assets" refers to all kinds of properties, real or personal, owned by the BMBE and used
for the conduct of its business as defined by the SMED Council: Provided, That for the
purpose of exemption from taxes and fees under this Act, this term shall mean all kinds of
properties, real or personal, owned and/or used by the BMBE for the conduct of its business as
defined by the SMED Council.
(d) "Registration" refers to the inclusion of BMBE in the BMBE Registry of a city or
municipality.
(e) "Financing" refers to all borrowings of the BMBE from all sources after registration.
REGISTRATION AND OPERATION OF BMBE
Section 4. Registration and Fees - The Office of the Treasurer of each city or municipality
shall register the BMBE's and issue a Certificate of Authority to enable the BMBE to avail of
the benefits under this Act. Any such applications shall be processed within fifteen (15)
working days upon submission of complete documents. Otherwise, the BMBEs shall be
deemed registered. The Municipal or City Mayor may appoint a BMBE Registration Officer
who shall be under the Office of the Treasurer. Local government units (LGU's) are
encouraged to establish a One-Stop-business Registration Center to handle the efficient
registration and processing of permits/licenses of BMBEs. Likewise, LGUs shall make a
periodic evaluation of the BMBE's financial status for monitoring and reporting purposes.
The LGUs shall issue the Certificate of Authority promptly and free of charge. However, to
defray the administrative costs of registering and monitoring the BMBEs, the LGUs may
charge a fee renewal.
The Certificate of Authority shall be effective for a period of two (2) years, renewable for a
period of two (2) years for every renewal.
As much as possible, BMBEs shall be subject to minimal bureaucratic requirements and
reasonable fees and charges.
Section 5. Who are Eligible to Register – Any person, natural or juridical, or cooperative, or
association, having the qualifications as defined in Section 3(a) hereof may apply for
registration as BMBE.
Section 6. Transfer of Ownership - The BMBE shall report to the city or municipality of any
changer in the status of its ownership structure, and shall surrender the original copy of the
BMBE Certificate of Authority for notation of the transfer.
INCENTIVES AND BENEFITS
Section 7. Exemption from Taxes and Fees – All BMBEs shall be exempt from tax for income
arising from the operations of the enterprise.
The LGUs are encouraged either to reduce the amount of local taxes, fees and charges
imposed or to exempt BMBEs from local taxes, fees and charges.
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Section 8. Exemption from the Coverage of the Minimum Wage Law – The BMBEs shall be
exempt from the coverage of the Minimum Wage Law: Provided, That all employees covered
under this Act shall be entitled to the same benefits given to any regular employee such as
social security and healthcare benefits.
Section 9. Credit Delivery – upon the approval of this Act, the land Bank of the Philippines
(LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee and
Finance Corporation (SBGFC), and the People's Credit and Finance Corporation (PCFC) shall
set up a special credit window that will service the financing needs of BMBEs registered
under this Act consistent with the Banko Sentral ng Pilipinas (BSP) policies; rules and
regulations. The Government Service Insurance System (GSIS) and Social Security System
(SSS) shall likewise set up a special credit window that will serve the financing needs of their
respective members who wish to establish a BMBE. The concerned financial institutions (FIs)
encouraged to wholesale the funds to accredited private financial institutions including
community-based organizations such as credit, cooperatives, non-government organizations
(NGOs) and people's organizations, which will in turn, directly provide credit support to
BMBEs.
All loans from whatever sources granted to BMBEs under this Act shall be considered as part
of alternative compliance to Presidential Decree no, 717,, otherwise known as the Agri-Agra
Law, or to Republic Act. No. 6977, known as the Magna Carta for Small and Medium
Enterprises, as amended. For purposes of compliance with presidential Decree no. 717 and
Republic Act No. 6977, as amended, loans granted to BMBEs under this Act shall be
computed at twice the amount of the face value of the loans.
To minimize the risks in lending to the BMBEs, the SBGFC and the Quedan and Rural Credit
Guarantee Corporation (QUEDANCOR) under the Department of Agriculture, in case of
agribusiness activities, shall set up a special guarantee window to provide the necessary credit
guarantee to BMBEs unde rtheir respective guarantee programs.
The LBP, DBP. PCFC, SBGFC, SSS, GSIS, and QUEDANCOR shall annually report to the
appropriate Committee of Both Houses of Congress on the status of the implementation of this
provision.
The BSP shall formulate the rules for the implementation of this provision and shall likewise
establish incentive programs to encourage and improve credit delivery to the BMBEs.
Section 10. Technology Transfer, Production and Management Training, and marketing
Assistance – A BMBE Development Fund shall be set up with an endowment of Three
Hundred Million pesos (P300,000,000.00) from the Philippine Amusement and Gaming
Corporation (PAGCOR) and shall be administered by the SMED Council.
The Department of Trade and Industry (DTI), the Department of Science and Technology
(DOST), the university of the Philippines Institute for Small Scale Industries (UP ISSI),
Cooperative Development Authority (CDA), Technical Education and Skills Development
Authority (TESDA), and Technology and Livelihood Resource Center (TLRC) may avail of
the said Fund for technology transfer, production and management training and marketing
assistance to BMBEs.
The DTI, in coordination with the private sector and non-government organization (NGOs),
shall explore the possibilities of linking or matching-up BMBEs with small, medium and large
enterprises and likewise establish incentives therefor.
11
 Zabala 3D 2021

NWPC GUIDELINES NO. 2, SERIES OF 2012, GUIDELINES ON THE IMPLEMENTATION OF THE

The DTI, in behalf of the DOST, UP ISSI, CDA. TESDA and TLRC shall be required to TWO-TIERED WAGE SYSTEM
furnish the appropriate Committees of both Houses of Congress a yearly report on the
development and accomplishments of their projects and programs in relation to technology WAGE ORDER NO. NCR-20
transfer, production and management training and marketing assistance extended to BMBEs.

Section 11. Trade and Investment Promotions – The data gathered from business registration
shall be made accessible to and shall be utilized by private sector organizations and non-
government organizations for purposes of business matching, trade and investment promotion.

INFORMATION DISSEMINATION

Section 12. Information Dissemination - The Philippine Information Agency (PIA), in

accordance with the Department of Labor and Employment (DOLE), the DILG and the DTI,
shall ensure the proper and adequate information dissemination of the contents and benefits of
this Act to the general public especially to its intended beneficiaries specifically in the
barangay level.
PENALTY
Section 13. Penalty - Any person who shall willfully violates any provision of this Act or who
shall in any manner commit any act to defeat any provisions of this Act shall, upon conviction,
be punished by a fine of not less than twenty-five Thousand Pesos (P25,000.00) but not more
than Fifty Thousand Pesos (P50,000.00) and suffer imprisonment of not less than six (6)
months but not more than two (2) years.

In case of non-compliance with the provisions of Section 9 of this Act, the BSP shall impose
administrative sanctions and other penalties on the concerned government financial
institutions, including a fine of not less than Five Hundred Thousand Pesos (P500,000.00)

MISCELLANEOUS PROVISIONS

Section 14. Annual Report – The DILG, DTI, and BSP shall submit an annual report to the
Congress on the status of the implementation of this Act.

Section 15. Implementing Rules and Regulations – The Secretary of the Department of Trade
and Industry, in consultation with the Secretaries of the DILG, DOF, and the BSP Governor
shall formulate the necessary ruled and regulations to implement the provisions of this Act
within ninety (90) days after its approval. The rules and regulations issued pursuant to this
section shall take effect fifteen (15) days after its publication in a newspaper of general
circulation.

Section 16. Separably Clause - If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

Section 17. Repealing Clause – Existing laws, presidential decrees, executive orders,

proclamations or administrative regulations that are inconsistent with the provisions of this
Act are hereby amended, modified, superseded or repealed accordingly.

Section 18. Effectivity – This Act shall take effect fifteen (15) days after its publication in
the Office Gazette or in at least two (2) newspaper of general circulation.

12

C. Payment of Wages
Labor Code: Articles 102-105, 112-119 (check Art. 259 – Agency Fees, in relation to Art.
112) Omnibus Rules: Book III, Rule VIII
Labor Code
Art. 102. Forms of payment. No employer shall pay the wages of an employee by means
of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal
tender, even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed when:
1. such manner of payment is customary on the date of effectivity of this Code; or
2. is necessary because of special circumstances as specified in appropriate regulations to
be issued by the Secretary of Labor and Employment; or as stipulated in a collective
bargaining agreement.
Omnibus IRR for Labor Code, Book III, Rule VIII
Sec. 1. Manner of wage payment.
As a general rule, wages shall be paid in legal tender and the use of tokens, promissory
notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely
prohibited even when expressly requested by the employee.
Sec. 2. Payment by check.
Payment of wages by bank checks, postal checks or money orders is allowed where such
manner of wage payment is customary on the date of the effectivity of the Code, where it is
so stipulated in a collective agreement, or where all of the following conditions are met:
(a) There is a bank or other facility for encashment within a radius of 1 km from
the workplace;
(b) The employer or any of his agents or representatives does not receive any
pecuniary benefit directly or indirectly from the arrangement;
(c) The employees are given reasonable time during banking hours to withdraw
their wages from the bank which time shall be considered as compensable hours
worked if done during working hours; &
(d) The payment by check is with the written consent of the employees concerned if
there is no collective agreement authorizing the payment of wages by bank checks.
Labor Code
Art. 103. Time of payment.
Wages shall be paid at least once every 2 weeks or twice a month at intervals not exceeding
16 days. If on account of force majeure or circumstances beyond the employer’s control,
payment of wages on or within the time herein provided cannot be made, the employer
shall pay the wages immediately after such force majeure or circumstances have ceased.
No employer shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which cannot be completed
in 2 weeks shall be subject to the ff. conditions, in the absence of a CBA or arbitration
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award:
1. That payments are made at intervals not exceeding 16 days, in proportion to the
amount of work completed;
2. That final settlement is made upon completion of the work,
Omnibus IRR for LC, Book III, Rule VIII
Sec. 3.
(a) Wages shall be paid not less than once every 2 weeks or twice a month at intervals not
exceeding 16 days, unless payment cannot be made with such regularity due to force
majeure or circumstances beyond the employer's control in which case the employer
shall pay the wages immediately after such force majeure or circumstances have
ceased.
(b) In case of payment of wages by results involving work which cannot be finished in 2
weeks, payment shall be made at intervals not exceeding 16 days in proportion to the
amount of work completed. Final settlement shall be made immediately upon
completion of the work.
Labor Code
Art. 104. Place of payment. Payment of wages shall be made at or near the place of
undertaking, except as otherwise provided by such regulations as the Secretary of Labor
and Employment may prescribe under conditions to ensure greater protection of wages.
Omnibus IRR for LC, Book III, Rule VIII
Sec. 4. As a general rule, the place of payment shall be at or near the place of undertaking.
Payment in a place other than the work place shall be permissible only under the following
circumstances:
(a) When payment cannot be effected at or near the place of work by reason of the
deterioration of peace and order conditions, or by reason of actual or
impending emergencies caused by fire, flood, epidemic or other calamity
rendering payment thereat impossible;
(b) When the employer provides free transportation to the employees back and forth;
and
(c) Under any other analogous circumstances;
(d) Provided, That the time spent by the employees in collecting their wages shall be
considered as compensable hours worked;
(e) No employer shall pay his employees in any bar, night or day club, drinking
establishment, massage clinic, dance hall, or other similar places or in places
where games are played with stakes of money or things representing money
except in the case of persons employed in said places.
Rules Implementing R.A. 6727, Ch. 1
Section 19. Payment of Wages.
Upon written petition of the majority of the workers and employees concerned, all private
establishments, companies, businesses and other entities with at least 25 workers and
located within 1 km radius to a commercial, savings or rural bank, shall pay the wages and
other benefits of their workers through any of said banks within the period and in the
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manner & form prescribed under the Labor Code as amended.
Section 20. Duty of Bank.
Whenever applicable and upon request of a concerned worker or union, the bank through
which wages and other benefits are paid shall issue a certification of the record of payment
of said wages and benefits of a particular worker or workers for a particular payroll period.
Labor Code
Art. 105. Direct payment of wages. Wages shall be paid directly to the workers to whom
they are due, except:
a) In cases of force majeure rendering such payment impossible or under other special
circumstances to be determined by the Secretary of Labor and Employment in appropriate
regulations, in which case, the worker may be paid through another person under written
authority given by the worker for the purpose; or
b) Where the worker has died, in which case, the employer may pay the wages of the
deceased worker to the heirs of the latter without the necessity of intestate proceedings.
 The claimants, if they are all of age, shall execute an affidavit attesting to their
relationship to the deceased and the fact that they are his heirs, to the exclusion of all
other persons. If any of the heirs is a minor, the affidavit shall be executed on his
behalf by his natural guardian or next-of-kin. The affidavit shall be presented to the
employer who shall make payment through the Secretary of Labor and Employment or
his representative. The representative of the Secretary of Labor and Employment shall
act as referee in dividing the amount paid among the heirs. The payment of wages
under this Article shall absolve the employer of any further liability with respect to the
amount paid.
List of Prohibitions
1. Non-interference in disposal of wages
2. Wage deduction (IUL)
3. Deposits for loss or damage (TN)
4. Withholding of wages & kickbacks
5. Deduction to ensure employment
6. Retaliatory measures
7. False reporting
Labor Code
Art. 112. Non-interference in disposal of wages. No employer shall limit or otherwise
interfere with the freedom of any employee to dispose of his wages. He shall not in any
manner force, compel, or oblige his employees to purchase merchandise, commodities or
other property from any other person, or otherwise make use of any store or services of
such employer or any other person.
Omnibus Rules Implementing the Labor Code Book III, Rule VIII
Sec. 12. Non-interference in disposal of wages. No employer shall limit or otherwise
interfere with the freedom of any employee to dispose of his wages and no employer shall
in any manner oblige any of his employees to patronize any store or avail of the services
offered by any person.
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Art. 113. Wage deduction. No employer, in his own behalf or in behalf of any person, shall
make any deduction from the wages of his employees, except:
1. In cases where the worker is insured with his consent by the employer, and the
deduction is to recompense the employer for the amount paid by him as premium on
the insurance;
2. For union dues, in cases where the right of the worker or his union to check-off has
been recognized by the employer or authorized in writing by the individual worker
concerned; and
3. In cases where the employer is authorized by law or regulations issued by the
Secretary of Labor and Employment.
Omnibus Rules Implementing the Labor Code Book III, Rule VIII
Section 13. Wages deduction. Deductions from the wages of the employees may be made
by the employer in any of the following cases:
(a) When the deductions are authorized by law, including deductions for the insurance
premiums advanced by the employer in behalf of the employee as well as union dues where
the right to check-off has been recognized by the employer or authorized in writing by the
individual employee himself.
(b) When the deductions are with the written authorization of the employees for
payment to the third person and the employer agrees to do so; Provided, That the
latter does not receive any pecuniary benefit, directly or indirectly, from the
transaction.
Art. 114. Deposits for loss or damage. No employer shall require his worker to make
deposits from which deductions shall be made for the reimbursement of loss of or damage
to tools, materials, or equipment supplied by the employer, except:
1. when the employer is engaged in such trades, occupations or business where the
practice of making deductions or requiring deposits is a recognized one; or
2. is necessary or desirable as determined by the Secretary of Labor and Employment in
appropriate rules and regulations.
Omnibus Rules Implementing the Labor Code Book III, Rule VIII
Section 14. Deduction for loss or damage. Where the employer is engaged in a trade,
occupation or business where the practice of making deductions or requiring deposits is
recognized to answer for the reimbursement of loss or damage to tools, materials, or
equipment supplied by the employer to the employee, the employer may make wage
deductions or require the employees to make deposits from which deductions shall be
made, subject to the following conditions:
(a) That the employee concerned is clearly shown to be responsible for the loss or damage;
(b) That the employee is given reasonable opportunity to show cause why deduction should
not be made;
(c) That the amount of such deduction is fair and reasonable and shall not exceed the actual
loss or damage; and
(d) That the deduction from the wages of the employee does not exceed 20 percent of the
employee's wages in a week.
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Art. 115. Limitations. No deduction from the deposits of an employee for the actual amount Section 11. Attorney's fees. Attorney's fees in any judicial or administrative proceedings
of the loss or damage shall be made unless the employee has been heard thereon, and his for the recovery of wages shall not exceed 10 percent of the amount awarded. The fees may
responsibility has been clearly shown. be deducted from the total amount due the winning party.

Art. 116. Withholding of wages and kickbacks prohibited. It shall be unlawful for any
person, directly or indirectly, to withhold any amount from the wages of a worker or induce
him to give up any part of his wages by force, stealth, intimidation, threat or by any other
means whatsoever without the worker’s consent.
Sec. 12. Non-interference in disposal of wages. No employer shall limit or otherwise
Art. 117. Deduction to ensure employment. It shall be unlawful to make any deduction from interfere with the freedom of any employee to dispose of his wages and no employer shall
the wages of any employee for the benefit of the employer or his representative or in any manner oblige any of his employees to patronize any store or avail of the services
intermediary as consideration of a promise of employment or retention in employment. offered by any person.
Art. 118. Retaliatory measures. It shall be unlawful for an employer to refuse to pay or
reduce the wages and benefits, discharge or in any manner discriminate against any
employee who has filed any complaint or instituted any proceeding under this Title or has
testified or is about to testify in such proceedings.

Art. 119. False reporting. It shall be unlawful for any person to make any statement, report,
or record filed or kept pursuant to the provisions of this Code knowing such statement,
report or record to be false in any material respect.

Section 9. Labor-only contracting. (a) Any person who undertakes to supply workers to an
employer shall be deemed to be engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment in the form of tools, equipment,
machineries, work premises and other materials; and
(2) The workers recruited and placed by such person are performing activities which are
directly related to the principal business or operations of the employer in which workers are
habitually employed.
(b) Labor-only contracting as defined herein is hereby prohibited and the person acting as
contractor shall be considered merely as an agent or intermediary of the employer who
shall be responsible to the workers in the same manner and extent as if the latter were
directly employed by him.
(c) For cases not falling under this Rule, the Secretary of Labor and Employment shall
determine through appropriate orders whether or not the contracting out of labor is
permissible in the light of the circumstances of each case and after considering the
operating needs of the employer and the rights of the workers involved. In such case, he
may prescribe conditions and restrictions to insure the protection and welfare of the
workers.

Section 10. Payment of wages in case of bankruptcy. Unpaid wages earned by the
employees before the declaration of bankruptcy or judicial liquidation of the employer's
business shall be given first preference and shall be paid in full before other creditors may
establish any claim to a share in the assets of the employer.

15

D. Thirteenth-Month Pay
PD 851 (as amended by Memorandum Order No. 28)
1. Removal of Salary Ceiling.
On August 13, 1986, President Corazon C. Aquino issued Memorandum Order No. 28
which provides as follows:
"Section 1 of PD No. 851 is hereby modified to the extent that all employers are hereby
required to pay all their rank-and-file employees a 13th month pay not later than December
24 of every year."
Before its modification by the aforecited Memorandum Order, P.D. No. 851 excludes from
entitlement to the 13th month pay those employees who were receiving a basic salary of
more than P1,000 a month. With the removal of the salary ceiling of P1,000, all rank and
file employees are now entitled to a 13th month pay regardless of the amount of basic
salary that they receive in a month if their employers are not otherwise exempted from the
application of P.D. No. 851. Such employees are entitled to the benefit regardless of their
designation or employment status, and irrespective of the method by which their wages are
paid, provided that they have worked for at least 1 month during a calendar year.
2. Exempted Employers. GAHSP
The ff. employers are still not covered by P.D. No. 851:
a. The Government and any of its political subdivisions, including GOCCs, excepts
those corporations operating essentially as private subsidiaries of the Government;
b. Employers already paying their employees a 13th month pay or more in a calendar
year or its equivalent at the time of this issuance;
o term "its equivalent" shall include Christmas bonus, mid-year bonus, cash
bonuses and other payments amounting to not less than 1/12 of the basic salary
o but shall not include cash and stock dividends, COLA and all other allowances
regularly enjoyed by the employee, as well as non-monetary benefits.
c. Employers of household helpers and persons in the personal service of another in
relation to such workers; and
d. Employers of those who are paid on purely commission, boundary, or task basis,
and those who are paid a fixed amount for performing specific work, irrespective of
the time consumed in the performance thereof,
EXCEPT where the workers are paid on piece-rate basis in which case the employer
shall grant the required 13th month pay to such workers.
o 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.  employees.
As used herein,
The term "its equivalent" as used on paragraph (b) hereof shall include Christmas bonus,
mid-year bonus, cash bonuses and other payments amounting to not less than 1/12 of the
basic salary but shall not include cash and stock dividends, COLA and all other allowances
regularly enjoyed by the employee, as well as non-monetary benefits. Where an employer
pays less than required 1/12th of the employees’ basic salary, the employer shall pay the
difference.
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3.  Who are Rank-and File Employees.
The Labor Code distinguishes a rank-and-file employee from a managerial employee. It
provides that a managerial employee is one who is vested with powers of prerogatives to
lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall
discharge, assign or discipline employees, or to effectively recommend such managerial
actions. All employees not falling within this definition are considered rank-and-file
employees.
The above distinction shall be used as guide for the purpose of determining who are rank-
and-file employees entitled to the mandated 13th month pay.
4.  Amount and payment of 13th Month Pay
(a) Minimum of the Amount. — The minimum 13th month pay required by law shall not be
less than 1/12 of the total basic salary earned by an employee within a calendar year. For
the year 1987, the computation of the 13th month pay shall include the COLA integrated
into the basic salary of a covered employee pursuant to E.O. 178.
E.O. No. 178 provides, among other things, that the P9.00 of the daily COLA of P17.00 for
non-agricultural workers shall be integrated into the basic pay of covered employees
effective 1 May 1987, and the remaining P8.00 effective 1 October 1987. For
establishments with less than 30 employees and paid-up capital of P500,000 or less, the
integration of COLAs shall be as follows: P4.50 effective on 1 May 1987; P4.50 on 1
October 1987; and P8.00 effective 1 January 1988. Thus, in the computation of the 13th
month pay for 1987, the COLAs integrated into the basic pay shall be included as of the
date of their integration. 
Where the total P17.00 daily COLA was integrated effective 1 May 1987 or earlier the
inclusion of said COLA as part of the of the basic pay for the purpose of computing the
13th month pay shall be reckoned from the date of actual integration.
The "basic salary" of an employee for the purpose of computing the 13th month pay shall
include all remunerations or earning paid by this employer for services rendered but does
not include allowances and monetary benefits which are not considered or integrated as part
of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave
credits, overtime, premium, night differential and holiday pay, and cost-of-living
allowances. However, these salary-related benefits should be included as part of the basic
salary in the computation of the 13th month pay if by individual or collective agreement,
company practice or policy, the same are treated as part of the basic salary of the
(b) Time of Payment. — The required 13th month pay shall be paid not later than
December 24 of each year. An employer, however, may give to his employees ½ of the
required 13th month pay before the opening of the regular school year and the other half on
before the 24th of December of every year. The frequency of payment of this monetary
benefit may be the subject of agreement between the employer and the
recognized/collective bargaining agent of the employees.
5. 13th Month Pay for Certain Types of Employees.
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(a) Employees Paid by Results. — Employees who are paid on piece-work basis are by law
entitled to the 13th month pay.  year.
Employees who are paid a fixed or guaranteed wage plus commission are also entitled to
the mandated 13th month pay, based on their total earnings during the calendar year, i.e.,
on both their fixed or guaranteed wage and commission.
(b) Those with Multiple Employers. — Government employees working part time in a
private enterprise, including private educational institutions, as well as employees working
in two or more private firms, whether on full or part time basis, are entitled to the required
13th month pay from all their private employers regardless of their total earnings from each
or all their employers.
(c) Private School Teachers. — Private school teachers, including faculty members of
universities and colleges, are entitled to the required 13th month pay, regardless of the
number of months they teach or are paid within a year, if they have rendered service for at
least one (1) month within a year.
6. 13th Month Pay of Resigned or Separated Employee.
An employee who has resigned or whose services were terminated at any time before the
time for payment of the 13th month pay is entitled to this monetary benefit in proportion to
the length of time he worked during the year, reckoned from the time he started working
during the calendar year up to the time of his resignation or termination from the service.
Thus, if he worked only from January up to September his proportionate 13th month pay
should be equivalent of 1/12 his total basic salary he earned during that period.
The payment of the 13th month pay may be demanded by the employee upon the cessation
of employer-employee relationship. This is consistent with the principle of equity that as
the employer can require the employee to clear himself of all liabilities and property
accountability, so can the employee demand the payment of all benefits due him upon the
termination of the relationship.
7. Non-inclusion in Regular Wage.
The mandated 13th month pay need not be credited as part of regular wage of employees
for purposes of determining overtime and premium pays, fringe benefits insurance fund,
Social Security, Medicare and private retirement plans.
8. Prohibitions against reduction or elimination of benefits.  As used herein, workers paid on piece-rate basis shall refer to those who are paid a
Nothing herein shall be construed to authorize any employer to eliminate, or diminish in
any way, supplements, or other employee benefits or favorable practice being enjoyed by
the employee at the time of promulgation of this issuance.
RULES AND REGULATIONS IMPLEMENTING PRESIDENTIAL DECREE NO.
851
By virtue of the powers vested in me by law, the following rules and regulations
implementing PD No. 851 are hereby issued for the guidance of all concerned.
Section 1. Payment of 13-month Pay. All employers covered by PD No. 851, hereinafter
referred to as the "Decree", shall pay to all their employees receiving a basic salary of not
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more than P1,000 a month a thirteenth-month pay not later than December 24 of every
Section 2. Definition of certain terms. As used in this issuance:
(a) "Thirteenth-moth pay" shall mean 1/12 of the basic salary of an employee within a
calendar year;
(b) "Basic salary" shall include all remunerations or earnings paid by an employer to an
employee for services rendered but may not include (1) cost-of-living allowances granted
pursuant to PD No. 525 or Letter of Instructions No. 174, (2) profit-sharing payments, and
(3) all allowances and monetary benefits which are not considered or integrated as part of
the regular or basic salary of the employee at the time of the promulgation of the Decree on
Dec. 16, 1975.
Section 3. Employers covered. The Decree shall apply to all employers except to:
(a) Distressed employers, such as:
1) those which are currently incurring substantial losses or
2) in the case of non-profit institutions and organizations, where their income,
whether from donations, contributions, grants and other earnings from any
source, has consistently declined by more than 40% of their normal income for
the last 2 years, subject to the provision of Section 7 of this issuance;
(b) The Government and any of its political subdivisions, including GOCCs, except those
corporations operating essentially as private subsidiaries of the Government;
(c) Employers already paying their employees 13-month pay or more in a calendar year of
its equivalent at the time of this issuance;
(d) Employers of household helpers and persons in the personal service of another in
relation to such workers; and
(e) Employers of those who are paid on purely commission, boundary, or task basis, and
those who are paid a fixed amount for performing a specific work, irrespective of the time
consumed in the performance thereof, except where the workers are paid on piece-rate
basis in which case the employer shall be covered by this issuance insofar as such workers
are concerned.
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.
The term "its equivalent" as used in paragraph c) hereof shall include Christmas bonus,
mid-year bonus, profit-sharing payments and other cash bonuses amounting to not less than
1/12th of the basic salary but shall not include cash and stock dividends, cost of living
allowances and all other allowances regularly enjoyed by the employee, as well as non-
monetary benefits. Where an employer pays less than 1/12th of the employees basic salary,
the employer shall pay the difference.
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Section 4. Employees covered. Except as provided in Section 3 of this issuance, all
employees of covered employers shall be entitled to benefit provided under the Decree who
are receiving not more than P1,000 a month, regardless of their position, designation or
employment status, and irrespective of the method by which their wages are paid, provided
that they have worked for at least one month during the calendar year.
Section 5. Option of covered employers. A covered employer may pay one-half of the
13th-month pay required by the Decree before the opening of the regular school year and
the other half on or before the 24th day of December of every year.
Section 10. Prohibition against reduction or elimination of benefits. Nothing herein shall be
construed to authorize any employer to eliminate, or diminish in any way, supplements, or
other employee benefits or favorable practice being enjoyed by the employee at the time of
promulgation of this issuance.
Section 11. Transitory Provision. These rules and regulations shall take effect immediately
and for purposes of the 13-month pay for 1975, the same shall apply only to those who are
employees as of December 16, 1975.

In any establishment where a union has been recognized or certified as the collective
bargaining agent of the employees therein, the periodicity or frequency of payment of the
13th month pay may be the subject of agreement.

Nothing herein shall prevent employers from giving the benefits provided in the Decree to
their employees who are receiving more than P1,000 a month or benefits higher than those
provided by the Decree.

Section 6. Special feature of benefit. The benefits granted under this issuance shall not be
credited as part of the regular wage of the employees for purposes of determining overtime
and premium pay, fringe benefits, as well as premium contributions to the State Insurance
Fund, social security, medicare and private welfare and retirement plans.

Section 7. Exemption of Distressed employers. Distressed employers shall qualify for

exemption from the requirement of the Decree upon prior authorization by the Secretary of
Labor. Petitions for exemptions may be filed within the nearest regional office having
jurisdiction over the employer not later than January 15, 1976. The regional offices shall
transmit the petitions to the Secretary of Labor within 24 hours from receipt thereof.

Section 8. Report of compliance. Every covered employer shall make a report of his
compliance with the Decree to the nearest regional labor office not later than January 15 of
each year.
The report shall conform substantially with the following form:

REPORT ON COMPLIANCE WITH PD NO. 851

1. Name of establishment
2. Address
3. Principal product or business
4. Total employment
5. Total number of workers benefited
6. Amount granted per employee
7. Total amount of benefits granted
8. Name, position and tel. no. of person giving information

Section 9. Adjudication of claims. Non-payment of the 13th-month pay provided by the

Decree and these rules shall be treated as money claims cases and shall be processed in
accordance with the Rules Implementing the Labor Code of the Philippines and the Rules
of the National Labor Relations Commission.

18

F. NON-DIMINUTION
ART. 100. PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS. – Nothing in
this Book shall be construed to eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at the time of promulgation of this Code. (May 01 1974)
G. WORKER PREFERENCE
ART. 110. WORKER PREFERENCE IN CASE OF BANKRUPTCY. - In the event of bankruptcy or
liquidation of an employer's business, his workers shall enjoy first preference as regards their
unpaid wages and other monetary claims, any provision of law to the contrary
notwithstanding. Such unpaid wages and monetary claims shall be paid in full before the
claims of the Government and other creditors may be paid
H. ATTORNEY’S FEES
ART. 111. ATTORNEY’S FEES. –
(a) In cases of unlawful withholding of wages, the culpable party may be assessed attorney’s
fees equivalent to ten percent of the amount of wages recovered.
(b) It shall be unlawful for any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s fees which exceed ten percent of the amount
of wages recovered.
WORKING CONDITIONS
A. MANAGEMENT PREROGATIVE
B. COVERAGE
ART. 82. COVERAGE. - The provisions of this Title* shall apply to employees in all
establishments and undertakings whether for profit or not, but not to:
1. government employees;
2. managerial employees;
o "managerial employees" refer 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 officers or members of the
managerial staff.
o “members of the managerial staff” - they perform the following duties and
responsibilities:
a) The primary duty consists of the performance of work directly related to
management policies of their employer;
b) Customarily and regularly exercise discretion and independent judgment;
and
c) (i) Regularly and directly assist a proprietor or a managerial employee
whose primary duty consists of the management of the establishment in
which he is employed or subdivision thereof; or
(ii) execute under general supervision work along specialized or technical
lines requiring special training, experience, or knowledge; or
(iii) execute, under general supervision, special assignments and tasks;
and
d)
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e) Who do not devote more than 20 percent of their hours worked in a work
week to activities which are not directly and closely related to the
performance of the work described in paragraphs (1), (2) and (3) above.
o
3. field personnel;
o "Field personnel" shall refer 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.
4. members of the family of the employer who are dependent on him for support;
5. domestic helpers;
6. persons in the personal service of another; and
7. workers who are paid by results as determined by the Secretary of Labor in
appropriate regulations.
As used herein, "managerial employees" refer 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 officers or members of the managerial staff.
"Field personnel" shall refer 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.
*Book III Title I: Working Conditions and Rest Periods
OMNIBUS RULES: BOOK III, RULE I, SECTIONS 1-2
BOOK THREE CONDITIONS OF EMPLOYMENT
RULE I HOURS OF WORK
SECTION 1. GENERAL STATEMENT ON COVERAGE. —
The provisions of this Rule shall apply to all employees in all establishments and
undertakings, whether operated for profit or not, except to those specifically exempted under
Section 2 hereof.
SECTION 2. EXEMPTION. —
The provisions of this Rule shall not apply to the following persons if they qualify for
exemption under the conditions set forth herein:
(a) Government employees whether employed by the National Government or any of its
political subdivision, including those employed in government-owned and/or controlled
corporations;
(b) Managerial employees, if they meet all of the following conditions:
1. Their primary duty consists of the management of the establishment in which they
are employed or of a department or sub-division thereof.
2. They customarily and regularly direct the work of two or more employees therein.
19

3. They have the authority to hire or fire employees of lower rank; or their suggestions
and recommendations as to hiring and firing and as to the promotion or any other
change of status of other employees, are given particular weight.
(c) Officers or members of a managerial staff if they perform the following duties and
responsibilities:
1. The primary duty consists of the performance of work directly related to
management policies of their employer;
2. Customarily and regularly exercise discretion and independent judgment; and
3. (i) Regularly and directly assist a proprietor or a managerial employee whose
primary duty consists of the management of the establishment in which he is
employed or subdivision thereof; or
(ii) execute under general supervision work along specialized or technical lines
requiring special training, experience, or knowledge; or
(iii) execute, under general supervision, special assignments and tasks; and
4. Who do not devote more than 20 percent of their hours worked in a work week to
activities which are not directly and closely related to the performance of the work
described in paragraphs (1), (2) and (3) above.
(d) Domestic servants and persons in the personal service of another if they perform such
services in the employer's home which are usually necessary or desirable for the maintenance
and enjoyment thereof, or minister to the personal comfort, convenience, or safety of the
employer as well as the members of his employer's household.
(e) Workers who are paid by results, including those who are paid on piece-work, "takay,"
"pakiao" or task basis, and other non-time work if their output rates are in accordance with the
standards prescribed under Section 8, Rule VII, Book Three of these regulations, or where
such rates have been fixed by the Secretary of Labor and Employment in accordance with the
aforesaid Section.
(f) Non-agricultural field personnel if they regularly perform their duties away from the
principal or branch office or place of business of the employer and whose actual hours of work
in the field cannot be determined with reasonable certainty.
C. HOURS OF WORK
ART. 83. NORMAL HOURS OF WORK. The normal hours of work of any employee shall
not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of at least one million
(1,000,000) or in hospitals and clinics with a bed capacity of at least one hundred (100) shall
hold regular office hours for eight (8) hours a day, for five (5) days a week, exclusive of time
for meals, except where the exigencies of the service require that such personnel work for six
(6) days or forty-eight (48) hours, in which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular wage for work on the sixth day.
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For purposes of this Article, "health personnel" shall include resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical
technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.
HOURS WORKED
ART. 84. HOURS WORKED.
Hours worked shall include
a) all time during which an employee is required to be on duty or to be at a prescribed
workplace; and
b) all time during which an employee is suffered or permitted to work.
Rest periods of short duration during working hours shall be counted as hours worked.
OMNIBUS RULES BOOK THREE RULE I
SECTION 4. Principles in determining hours worked. — The following general principles
shall govern in determining whether the time spent by an employee is considered hours
worked for purposes of this Rule:
a. All hours are hours worked which the employee is required to give his employer,
regardless of whether or not such hours are spent in productive labor or involve physical
or mental exertion.
b. An employee need not leave the premises of the work place in order that his rest period
shall not be counted, it being enough that he stops working, may rest completely and may
leave his work place, to go elsewhere, whether within or outside the premises of his work
place.
c. 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 was with the knowledge of his employer or immediate supervisor.
d. The time during which an employee is inactive by reason of interruptions in his work
beyond his control shall be considered working time either if the imminence of the
resumption of work requires the employee's presence at the place of work or if the
interval is too brief to be utilized effectively and gainfully in the employee's own interest.
SECTION 5. Waiting time. —
(a) Waiting time spent by an employee shall be considered as working time if waiting is an
integral part of his work or the employee is required or engaged by the employer to wait.
(b) An employee who is required to remain on call in the employer's premises or so close
thereto that he cannot use the time effectively and gainfully for his own purpose shall be
considered as working while on call. An employee who is not required to leave word at
his home or with company officials where he may be reached is not working while on
call.
SECTION 6. Lectures, meetings, training programs. —
Attendance at lectures, meetings, training programs, and other similar activities shall not be
counted as working time if all of the following conditions are met:
a. Attendance is outside of the employee's regular working hours;
b. Attendance is in fact voluntary; and
c. The employee does not perform any productive work during such attendance.
MEAL PERIODS
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ART. 85. Meal Periods.

Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of
every employer to give his employees not less than sixty (60) minutes time-off for their
regular meals.

OMNIBUS RULES BOOK THREE RULE I

SECTION 7. Meal and Rest Periods. —
Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off
for regular meals, except in the following cases when a meal period of not less than twenty
(20) minutes may be given by the employer provided that such shorter meal period is credited
as compensable hours worked of the employee:
a. Where the work is non-manual work in nature or does not involve strenuous physical
exertion;
b. Where the establishment regularly operates not less than sixteen (16) hours a day;
c. In case of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installations to avoid serious loss which the employer would
otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable goods.

Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered
as compensable working time.

21

NIGHT-SHIFT DIFFERENTIAL
ART. 86. Night-Shift Differential. Every employee shall be paid a night shift differential
of not less than ten percent (10%) of his regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock in the morning.
OMNIBUS RULES BOOK THREE RULE IINight Shift Differential
SECTION 1. Coverage. — This Rule shall apply to all employees except:
a. Those of the government and any of its political subdivisions, including government-
owned and/or controlled corporations;
b. Those of retail and service establishments regularly employing not more than five (5)
workers;
c. Domestic helpers and persons in the personal service of another;
d. Managerial employees as defined in Book Three of this Code;
e. Field personnel and other employees whose time and performance is unsupervised by the
employer including those who are engaged on task or contract basis, purely commission
basis, or those who are paid a fixed amount for performing work irrespective of the time
consumed in the performance thereof.
SECTION 2. Night shift differential. —
An employee shall be paid night shift differential of no less than ten per cent (10%) of his
regular wage for each hour of work performed between ten o'clock in the evening and six
o'clock in the morning.
SECTION 3. Additional compensation. —
Where an employee is permitted or suffered to work on the period covered after his work
schedule, he shall be entitled to his regular wage plus at least twenty-five per cent (25%) and
an additional amount of no less than ten per cent (10%) of such overtime rate for each hour or
work performed between 10 p.m. to 6 a.m.
SECTION 4. Additional compensation on scheduled rest day/special holiday. — An
employee who is required or permitted to work on the period covered during rest days and/or
special holidays not falling on regular holidays, shall be paid a compensation equivalent to his
regular wage plus at least thirty (30%) per cent and an additional amount of not less than ten
(10%) per cent of such premium pay rate for each hour of work performed.
SECTION 5. Additional compensation on regular holidays. — For work on the period
covered during regular holidays, an employee shall be entitled to his regular wage during these
days plus an additional compensation of no less than ten (10%) per cent of such premium rate
for each hour of work performed.
SECTION 6. Relation to agreements. — Nothing in this Rule shall justify an employer in
withdrawing or reducing any benefits, supplements or payments as provided in existing
individual or collective agreements or employer practice or policy.
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OVERTIME WORK
ART. 87. Overtime Work. Work may be performed beyond eight (8) hours a day provided
that the employee is paid for the overtime work, an additional compensation equivalent to his
regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond eight
hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate
of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.
ART. 88. Undertime Not Offset by Overtime. Undertime work on any particular day shall
not be offset by overtime work on any other day. Permission given to the employee to go on
leave on some other day of the week shall not exempt the employer from paying the additional
compensation required in this Chapter.
ART. 89. Emergency Overtime Work. Any employee may be required by the employer to
perform overtime work in any of the following cases:
a. When the country is at war or when any other national or local emergency has been
declared by the National Assembly or the Chief Executive;
b. When it is necessary to prevent loss of life or property or in case of imminent danger to
public safety due to an actual or impending emergency in the locality caused by serious
accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;
c. When there is urgent work to be performed on machines, installations, or equipment, in
order to avoid serious loss or damage to the employer or some other cause of similar
nature;
d. When the work is necessary to prevent loss or damage to perishable goods; and
e. 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.
Any employee required to render overtime work under this Article shall be paid the additional
compensation required in this Chapter.
ART. 90. Computation of Additional Compensation. For purposes of computing
overtime and other additional remuneration as required by this Chapter, the "regular wage" of
an employee shall include the cash wage only, without deduction on account of facilities
provided by the employer.
OMNIBUS RULES BOOK THREE RULE I
SECTION 8. Overtime pay. — Any employee covered by this Rule who is permitted or
required to work beyond eight (8) hours on ordinary working days shall be paid an additional
compensation for the overtime work in the amount equivalent to his regular wage plus at least
twenty-five percent (25%) thereof.
SECTION 9. Premium and overtime pay for holiday and rest day work. —
(a) Except employees referred to under Section 2 of this Rule, an employee who is permitted
or suffered to work on special holidays or on his designated rest days not falling on regular
holidays, shall be paid with an additional compensation as premium pay of not less than thirty
percent (30%) of his regular wage. For work performed in excess of eight (8) hours on special
holidays and rest days not falling on regular holidays, an employee shall be paid an additional
compensation for the overtime work equivalent to his rate for the first eight hours on a special
holiday or rest day plus at least thirty percent (30%) thereof.
22

(b) Employees of public utility enterprises as well as those employed in non-profit institutions
and organizations shall be entitled to the premium and overtime pay provided herein, unless
they are specifically excluded from the coverage of this Rule as provided in Section 2 hereof.
(c) The payment of additional compensation for work performed on regular holidays shall be
governed by Rule IV, Book Three, of these Rules.
SECTION 10. Compulsory overtime work. —
In any of the following cases, an employer may require any of his employees to work beyond
eight (8) hours a day, provided that the employee required to render overtime work is paid the
additional compensation required by these regulations:
a. When the country is at war or when any other national or local emergency has been
declared by Congress or the Chief Executive;
b. When overtime work is necessary to prevent loss of life or property, or in case of
imminent danger to public safety due to actual or impending emergency in the locality
caused by serious accident, fire, floods, typhoons, earthquake, epidemic or other disaster
or calamities;
c. When there is urgent work to be performed on machines, installations, or equipment, in
order to avoid serious loss or damage to the employer or some other causes of similar
nature;
d. When the work is necessary to prevent loss or damage to perishable goods;
e. When the completion or continuation of work started before the 8th hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer; or
f. When overtime work is necessary to avail of favorable weather or environmental
conditions where performance or quality of work is dependent thereon.
In cases not falling within any of these enumerated in this Section, no employee may be made
to work beyond eight hours a day against his will.
OMNIBUS RULES BOOK THREE RULE I-A
Hours of Work of Hospital and Clinic Personnel
SECTION 1. General statement on coverage. — This Rule shall apply to:
(a) All hospitals and clinics, including those with a bed capacity of less than one hundred
(100) which are situated in cities or municipalities with a population of one million or more;
and
(b) All hospitals and clinics with a bed capacity of at least one hundred (100), irrespective of
the size of the population of the city or municipality where they may be situated.
SECTION 2. Hospitals or clinics within the meaning of this Rule. —
The terms "hospitals" and "clinics" as used in this Rule shall mean a place devoted primarily
to the maintenance and operation of facilities for the diagnosis, treatment and care of
individuals suffering from illness, disease, injury, or deformity, or in need of obstetrical or
other medical and nursing care. Either term shall also be construed as any institution, building,
or place where there are installed beds, or cribs, or bassinets for twenty-four (24)
hours use or longer by patients in the treatment of disease, injuries, deformities, or abnormal
physical and mental states, maternity cases or sanitorial care; or infirmaries, nurseries,
dispensaries, and such other similar names by which they may be designated.
SECTION 3. Determination of bed capacity and population. —
(a) For purposes of determining the applicability of this Rule, the actual bed capacity of the
hospital or clinic at the time of such determination shall be considered, regardless of the actual
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or bed occupancy. The bed capacity of hospital or clinic as determined by the Bureau of
Medical Services pursuant to Republic Act No. 4226, otherwise known as the Hospital
Licensure Act, shall prima facie be considered as the actual bed capacity of such hospital or
clinic.
(b) The size of the population of the city or municipality shall be determined from the latest
official census issued by the Bureau of the Census and Statistics.
SECTION 4. Personnel covered by this Rule. —
This Rule applies to all persons employed by any private or public hospital or clinic
mentioned in Section 1 hereof, and shall include, but not limited to, resident physicians,
nurses, nutritionists, dieticians, pharmacists, social workers, laboratory technicians
paramedical technicians, psychologists, midwives, and attendants.
SECTION 5. Regular working hours. —
The regular working hours of any person covered by this Rule shall not be more than eight (8)
hours in any one day nor more than forty (40) hours in any one week.
For purposes of this Rule a "day" shall mean a work day of twenty-four (24) consecutive hours
beginning at the same time each calendar year. A "week" shall mean the work of 168
consecutive hours, or seven consecutive 24-hour work days, beginning at the same hour and
on the same calendar day each calendar week.
SECTION 6. Regular working days. — The regular working days of covered employees
shall not be more than five days in a work week. The work week may begin at any hour and
on any day, including Saturday or Sunday, designated by the employer.
Employers are not precluded from changing the time at which the work day or work week
begins, provided that the change is not intended to evade the requirements of this Rule.
SECTION 7. Overtime work. — Where the exigencies of the service so require as
determined by the employer, any employee covered by this Rule may be scheduled to work for
more than five (5) days or forty (40) hours a week, provided that the employee is paid for the
overtime work an additional compensation equivalent to his regular wage plus at least thirty
percent (30%) thereof, subject to the provisions of this Book on the payment of additional
compensation for work performed on special and regular holidays and on rest days.
SECTION 8. Hours worked. — In determining the compensable hours of work of hospital
and clinic personnel covered by this Rule, the pertinent provisions of Rule 1 of this Book shall
apply.
SECTION 9. Additional compensation. — Hospital and clinic personnel covered by this
Rule, with the exception of those employed by the Government, shall be entitled to an
additional compensation for work performed on regular and special holidays and rest days as
provided in this Book. Such employees shall also be entitled to overtime pay for services
rendered in excess of forty hours a week, or in excess of eight hours a day, whichever will
yield the higher additional compensation to the employee in the work week.
SECTION 10. Relation to Rule I. — All provisions of Rule I of this Book which are not
inconsistent with this Rule shall be deemed applicable to hospital and clinic personnel.
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D. REST PERIODS AND HOLIDAYS
CHAPTER II: WEEKLY REST PERIODS
ART. 91. Right to Weekly Rest Day.
(a) It shall be the duty of every employer, whether operating for profit or not, to provide
each of his employees a rest period of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal work days.
(b) The employer shall determine and schedule the weekly rest day of his employees
subject to collective bargaining agreement and to such rules and regulations as the
Secretary of Labor and Employment may provide. However, the employer shall respect the
preference of employees as to their weekly rest day when such preference is based on
religious grounds.
OMNIBUS RULES BOOK THREE RULE III: WEEKLY REST PERIODS
SECTION 1. General statement on coverage. — This Rule shall apply to all employers
whether operating for profit or not, including public utilities operated by private persons.
SECTION 2. Business on Sundays/Holidays. — All establishments and enterprises may
operate or open for business on Sundays and holidays provided that the employees are given
the weekly rest day and the benefits as provided in this Rule.
SECTION 3. Weekly rest day. — Every employer shall give his employees a rest period of
not less than twenty-four (24) consecutive hours after every six consecutive normal work days.
SECTION 4. Preference of employee. — The preference of the employee as to his weekly
day of rest shall be respected by the employer if the same is based on religious grounds. The
employee shall make known his preference to the employer in writing at least seven (7) days
before the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious grounds will
inevitably result in serious prejudice or obstruction to the operations of the undertaking and
the employer cannot normally be expected to resort to other remedial measures, the employer
may so schedule the weekly rest day of his choice for at least two (2) days in a month.
SECTION 5. Schedule of rest day. —
(a) Where the weekly rest is given to all employees simultaneously, the employer shall make
known such rest period by means of a written notice posted conspicuously in the work place at
least one week before it becomes effective.
(b) Where the rest period is not granted to all employees simultaneously and collectively, the
employer shall make known to the employees their respective schedules of weekly rest
through written notices posted conspicuously in the work place at least one week before they
become effective.
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ART. 92. When Employer May Require Work on a Rest Day.
The employer may require his employees to work on any day:
(a) In case of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and
property, or imminent danger to public safety;
(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to
avoid serious loss which the employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires continuous operations and the stoppage of work
may result in irreparable injury or loss to the employer; and
(f) Under other circumstances analogous or similar to the foregoing as determined by the
Secretary of Labor and Employment.
OMNIBUS RULES BOOK THREE RULE III: WEEKLY REST PERIODS
SECTION 6. When work on rest day authorized. —
An employer may require any of his employees to work on his scheduled rest day for the
duration of the following emergencies and exceptional conditions:
(a) In case of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, 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;
(b) In case of urgent work to be performed on machineries, equipment or installations to avoid
serious loss which the employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the employees have to work continuously for
seven (7) days in a week or more, as in the case of the crew members of a vessel to complete a
voyage and in other similar cases; and
(f) When the work is necessary to avail of favorable weather or environmental conditions
where performance or quality of work is dependent thereon.
No employee shall be required against his will to work on his scheduled rest day except under
circumstances provided in this Section: Provided, However, that where an employee
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volunteers to work on his rest day under other circumstances, he shall express such desire in
writing, subject to the provisions of Section 7 hereof regarding additional compensation.

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ART. 93. Compensation for Rest Day, Sunday or Holiday Work.

(a) Where an employee is made or permitted to work on his scheduled rest day, he shall be
paid an additional compensation of at least thirty percent (30%) of his regular wage. An
employee shall be entitled to such additional compensation for work performed on Sunday
only when it is his established rest day.
(b) When the nature of the work of the employee is such that he has no regular workdays
and no regular rest days can be scheduled, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage for work performed on Sundays and holidays.
SECTION 9. Relation to agreements. —
Nothing herein shall prevent the employer and his employees or their representatives in
entering into any agreement with terms more favorable to the employees than those provided
herein, or be used to diminish any benefit granted to the employees under existing laws,
agreements, and voluntary employer practices.
COMPUTATIONS/DISCUSSION:

(c) Work performed on any special holiday74 shall be paid an additional compensation of
at least thirty percent (30%) 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 at least fifty per cent (50%) of his regular wage.

(d) Where the collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed under this Article, the
employer shall pay such higher rate.

OMNIBUS RULES BOOK THREE RULE III: WEEKLY REST PERIODS

SECTION 7. Compensation on rest day/Sunday/holiday. —
(a) Except those employees referred to under Section 2, Rule I, Book Three, an employee who
is made or permitted to work on his scheduled rest day shall be paid with an additional
compensation of at least 30% of his regular wage. An employee shall be entitled to such
additional compensation for work performed on a Sunday only when it is his established rest
day.

(b) Where the nature of the work of the employee is such that he has no regular work days and
no regular rest days can be scheduled, he shall be paid an additional compensation of at least
30% of his regular wage for work performed on Sundays and holidays.

(c) Work performed on any special holiday shall be paid with an additional compensation of at
least 30% of the regular wage of the employees. Where such holiday work falls on the
employee's scheduled rest day, he shall be entitled to additional compensation of at least 50%
of his regular wage.

(d) The payment of additional compensation for work performed on regular holiday shall be
governed by Rule IV, Book Three, of these regulations.

(e) Where the collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed under this Section, the
employer shall pay such higher rate.

SECTION 8. Paid-off days. —

Nothing in this Rule shall justify an employer in reducing the compensation of his employees
for the unworked Sundays, holidays, or other rest days which are considered paid-off days or
holidays by agreement or practice subsisting upon the effectivity of the Code.

26

Article 94. Right to holiday pay.
Every worker shall be paid his regular daily wage during regular holidays, except in retail
and service establishments regularly employing less than ten (10) workers;
The employer may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to twice his regular rate; and
As used in this Article, "holiday" includes: New Year’s Day, Maundy Thursday, Good
Friday, the ninth of April, the first of May, the twelfth of June, the fourth of July, the
thirtieth of November, the twenty-fifth and thirtieth of December and the day designated by
law for holding a general election.
OMNIBUS RULES BOOK THREE RULE IV: HOLIDAYS WITH PAY
SECTION 1. Coverage. —
This rule shall apply to all employees except:
(a) Those of the government and any of the political subdivision, including government-
owned and controlled corporation;
(b) Those of retail and service establishments regularly employing less than ten (10) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of the Code;
(e) Field personnel and other employees whose time and performance is unsupervised by the
employer including those who are engaged on task or contract basis, purely commission basis,
or those who are paid a fixed amount for performing work irrespective of the time consumed
in the performance thereof.
SECTION 2. Status of employees paid by the month. —
Employees who are uniformly paid by the month, irrespective of the number of working days
therein, with a salary of not less than the statutory or established minimum wage shall be paid
for all days in the month whether worked or not.
For this purpose, the monthly minimum wage shall not be less than the statutory minimum
wage multiplied by 365 days divided by twelve.
SECTION 3. Holiday Pay. — Every employer shall pay his employees their regular daily
wage for any worked regular holidays.
As used in the rule, the term 'regular holiday' shall exclusively refer to: New Year's Day,
Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the
last Sunday of August, the thirtieth of November, the twenty-fifth and thirtieth of December.
Nationwide special days shall include the first of November and the last day of December.
As used in this Rule legal or regular holiday and special holiday shall now be referred to as
'regular holiday' and 'special day', respectively.
SECTION 4. Compensation for holiday work. — Any employee who is permitted or
suffered to work on any regular holiday, not exceeding eight (8) hours, shall be paid at least
two hundred percent (200%) of his regular daily wage. If the holiday work falls on the
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scheduled rest day of the employee, he shall be entitled to an additional premium pay of at
least 30% of his regular holiday rate of 200% based on his regular wage rate.
SECTION 5. Overtime pay for holiday work. — For work performed in excess of eight
hours on a regular holiday, an employee shall be paid an additional compensation for the
overtime work equivalent to his rate for the first eight hours on such holiday work plus at least
30% thereof.
Where the regular holiday work exceeding eight hours falls on the scheduled rest day of the
employee, he shall be paid an additional compensation for the overtime work equivalent to his
regular holiday-rest day for the first 8 hours plus 30% thereof. The regular holiday rest day
rate of an employee shall consist of 200% of his regular daily wage rate plus 30% thereof.
SECTION 6. Absences. —
(a) All covered employees shall be entitled to the benefit provided herein when they are on
leave of absence with pay. Employees who are on leave of absence without pay on the day
immediately preceding a regular holiday may not be paid the required holiday pay if he has
not worked on such regular holiday.
(b) Employees shall grant the same percentage of the holiday pay as the benefit granted by
competent authority in the form of employee's compensation or social security payment,
whichever is higher, if they are not reporting for work while on such benefits.
(c) Where the day immediately preceding the holiday is a non-working day in the
establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave
of absence on that day, in which case he shall be entitled to the holiday pay if he worked on
the day immediately preceding the non- working day or rest day.
SECTION 7. Temporary or periodic shutdown and temporary cessation of work. —
(a) In cases of temporary or periodic shutdown and temporary cessation of work of an
establishment, as when a yearly inventory or when the repair or cleaning of machineries and
equipment is undertaken, the regular holidays falling within the period shall be compensated
in accordance with this Rule.
(b) The regular holiday during the cessation of operation of an enterprise due to business
reverses as authorized by the Secretary of Labor and Employment may not be paid by the
employer.
SECTION 8. Holiday pay of certain employees. —
(a) Private school teachers, including faculty members of colleges and universities, may not be
paid for the regular holidays during semestral vacations. They shall, however, be paid for the
regular holidays during Christmas vacation;
(b) Where a covered employee, is paid by results or output, such as payment on piece work,
his holiday pay shall not be less than his average daily earnings for the last seven (7) actual
working days preceding the regular holiday; Provided, However, that in no case shall the
holiday pay be less than the applicable statutory minimum wage rate.
(c) Seasonal workers may not be paid the required holiday pay during off-season when they
are not at work.
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(d) Workers who have no regular working days shall be entitled to the benefits provided in this
Rule.
B. Nationwide Special Days
SECTION 9. Regular holiday falling on rest days or Sundays. — All Saints Day – November 1
(a) A regular holiday falling on the employee's rest day shall be compensated accordingly. Last Day of the Year – December 31
(b) Where a regular holiday falls on a Sunday, the following day shall be considered a special
SECTION 2. Henceforth, the terms “legal or regular holiday” and “special holiday,” as used in
holiday for purposes of the Labor Code, unless said day is also a regular holiday.
laws, orders, rules and regulations or other issuances shall now be referred to as “regular
holiday” and “special day,” respectively.
SECTION 10. Successive regular holidays. — Where there are two (2) successive regular
holidays, like Holy Thursday and Good Friday, an employee may not be paid for both
SECTION 3. All laws, orders, issuances, rules and regulations or parts thereof inconsistent
holidays if he absents himself from work on the day immediately preceding the first holiday,
with this Executive Order are hereby repealed or modified accordingly.
unless he works on the first holiday, in which case he is entitled to his holiday pay on the
second holiday.
SECTION 4. This Executive Order shall take effect immediately.
SECTION 11. Relation to agreements. — Nothing in this Rule shall justify an employer in
DONE in the City of Manila, this 30th day of June, in the year of Our Lord, nineteen hundred
withdrawing or reducing any benefits, supplements or payments for unworked holidays as
and eighty-seven.
provided in existing individual or collective agreement or employer practice or policy.
(Sgd.) CORAZON C. AQUINO
President of the Philippines
Executive Order 203, 1987
UPDATED:
MALACAÑANG
“(a) Regular Holidays
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
New Year’s Day – January 1
EXECUTIVE ORDER NO. 203
PROVIDING A LIST OF REGULAR HOLIDAYS AND SPECIAL DAYS TO BE
OBSERVED THROUGHOUT THE PHILIPPINES AND FOR OTHER PURPOSES. Maundy Thursday – Movable Date
WHEREAS, a Cabinet Assistance Secretariat Committee was constituted to review all,
existing public holidays; Good Friday – Movable Date
WHEREAS, there are too many holidays being observed which has caused confusion among
the public;
Eidul Fitr – Movable Date
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby
order:
Eidul Adha – Movable Date
SECTION 1. Unless otherwise modified by law, order or proclamation, the following regular
holidays and special days shall be observed in this country:
A. Regular Holidays Araw ng Kagitingan – Monday nearest April 9
(Bataan & Corregidor Day)
New Year’s Day – January 1
Maundy Thursday – Movable date
Good Friday – Movable date Labor Day – Monday nearest May 1
Araw ng Kagitingan (Bataan and – April 9
Corregidor Day)
Labor Day – May 1 Independence Day – Monday nearest June 12
Independence Day – June 12
National Heroes Day – Last Sunday of August National Heroes Day – Last Monday of August
Bonifacio Day – November 30
Christmas Day – December 25
Bonifacio Day – Monday nearest November 30
Rizal Day – December 30

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Christmas Day – December 25

Rizal Day – Monday nearest December 30

“(b) Nationwide Special Holidays

Ninoy Aquino Day – Monday nearest August 21

All Saints Day – November 1

Last Day of the Year – December 31

Chinese New Year February 5 (subject to President Proclamation)

People Power Revolution February 25

Black Saturday April 20

Feast of the Immaculate December 08

Conception of Mary

Christmas Eve Dec 24 (subject to President Proclamation)

All Soul’s Day Nov 02 (subject to President Proclamation)

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COMPUTATIONS/DISCUSSION:

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E. SERVICE INCENTIVE LEAVE F. EMPLOYEES PAID BY RESULTS

Article 95. Right to service incentive leave. –
Every employee who has rendered at least one year of service shall be entitled to a yearly
service incentive leave of five days with pay.
This provision shall not apply to:
1. those who are already enjoying the benefit herein provided,
2. those enjoying vacation leave with pay of at least five days and
3. those employed in establishments regularly employing less than ten employees or
4. in establishments exempted from granting this benefit by the Secretary of Labor
and Employment after considering the viability or financial condition of such
establishment.
The grant of benefit in excess of that provided herein shall not be made a subject of
arbitration or any court or administrative action.
ART. 101. Payment by Results.
(a) The Secretary of Labor and Employment shall regulate the payment of wages by results,
including pakyao, piecework, and other non-time work, in order to ensure the payment of
fair and reasonable wage rates, preferably through time and motion studies or in
consultation with representative of workers’ and employer’s organizations.
OMNIBUS RULES BOOK III, RULE VII, CHAPTER I: WAGES
SECTION 9. Workers Paid by Results. —
a) All workers paid by results, including those who are paid on piecework, takay, pakyaw, or
task basis, shall receive not less than the applicable statutory minimum wage rates prescribed
under the Act for the normal working hours which shall not exceed eight hours work a day, or
a proportion thereof for work of less than the normal working hours.

OMNIBUS RULES BOOK III, RULE V: SERVICE INCENTIVE LEAVE  The adjusted minimum wage rates for workers paid by results shall be computed in
accordance with the following steps:
SECTION 1. Coverage. — This rule shall apply to all employees except:  1) Amount of increase in AMW - Previous AMW x 100 = % Increase;
a. Those of the government and any of its political subdivisions, including government- 2) Existing rate/piece x % increase = increase in rate/piece;
owned and controlled corporations;  3) Existing rate/piece + increase in rate/piece = Adjusted rate/piece.
b. Domestic helpers and persons in the personal service of another; 
c. Managerial employees as defined in Book Three of this Code;  Where AMW is the applicable minimum wage rate.
d. Field personnel and other employees whose performance is unsupervised by the
employer including those who are engaged on task or contract basis, purely commission b) The wage rates of workers who are paid by results shall continue to be established in
basis, or those who are paid a fixed amount for performing work irrespective of the time accordance with Article 101 of the Labor Code, as amended and its implementing regulations.
consumed in the performance thereof; 
e. Those who are already enjoying the benefit herein provided;  COMPUTATIONS/DISCUSSION:
f. Those enjoying vacation leave with pay of at least five days; and  
g. Those employed in establishments regularly employing less than ten employees. 

SECTION 2. Right to service incentive leave. — Every employee who has rendered at least
one year of service shall be entitled to a yearly service incentive leave of five days with pay. 

SECTION 3. Definition of certain terms. — The term "at least one-year service" shall mean
service for not less than 12 months, whether continuous or broken reckoned from the date the
employee started working, including authorized absences and paid regular holidays unless the
working days in the establishment as a matter of practice or policy, or that provided in the
employment contract is less than 12 months, in which case said period shall be considered as
one year. 

SECTION 4. Accrual of benefit. — Entitlement to the benefit provided in this Rule shall start
December 16, 1975, the date the amendatory provision of the Code took effect. 

SECTION 5. Treatment of benefit. — The service incentive leave shall be commutable to its
money equivalent if not used or exhausted at the end of the year. 

SECTION 6. Relation to agreements. — Nothing in the Rule shall justify an employer from
withdrawing or reducing any benefits, supplements or payments as provided in existing
individual or collective agreements or employer's practices or policies.

31

WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES
A. WOMEN
LABOR CODE: ARTICLES 130, 132-136
ART. 130. [132] Facilities for Women.
The Secretary of Labor and Employment shall establish standards that will ensure the
safety and health of women employees. In appropriate cases, he shall, by regulations,
require any employer to:
a) Provide seats proper for women and permit them to use such seats when they are free
from work and during working hours, provided they can perform their duties in this
position without detriment to efficiency;
b) To establish separate toilet rooms and lavatories for men and women and provide at
least a dressing room for women;
c) To establish a nursery in a workplace for the benefit of the women employees therein;
and
d) To determine appropriate minimum age and other standards for retirement or
termination in special occupations such as those of flight attendants and the like.
OMNIBUS RULES: BOOK III, RULE XII
SECTION 14. Facilities for woman employees. — Subject to the approval of the Secretary
of Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30)
days from the effective date of these Rules, determine in an appropriate issuance the work
situations for which the facilities enumerated in Article 131 of the Code shall be provided, as
well as the appropriate minimum age and other standards for retirement or termination of
employment in special occupations in which women are employed.
ART. 132. [134] Family Planning Services; Incentives for Family Planning.
a) Establishments which are required by law to maintain a clinic or infirmary shall
provide free family planning services to their employees which shall include, but not
be limited to, the application or use of contraceptive pills and intrauterine devices.
b) In coordination with other agencies of the government engaged in the promotion of
family planning, the Department of Labor and Employment shall develop and
prescribe incentive bonus schemes to encourage family planning among female
workers in any establishment or enterprise.
OMNIBUS RULES: BOOK III, RULE XII
SECTION 11. Family planning services. — Employers who habitually employ more than
two hundred (200) workers in any locality shall provide free family-planning services to their
employees and their spouses which shall include but not limited to, the application or use of
contraceptives.
Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and
Young Workers shall, within thirty (30) days from the effective date of these Rules, prescribe
the minimum requirements of family planning services to be given by employers to their
employees.
ART. 133. [135] 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 sex.
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The following are acts of discrimination:
a) Payment of a lesser compensation, including wage, salary or other form of
remuneration and fringe benefits, to a female employee as against a male employee,
for work of equal value; and
b) Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in this article
or any violation of the rules and regulations issued pursuant to Section 2 hereof shall be
penalized as provided in Articles 288 and 289 of this Code: Provided, That the institution
of any criminal action under this provision shall not bar the aggrieved employee from filing
an entirely separate and distinct action for money claims, which may include claims for
damages and other affirmative reliefs. The actions hereby authorized shall proceed
independently of each other.
ART. 134. [136] Stipulation Against Marriage.
It shall be unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get married, or to stipulate
expressly 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. 135. [137] Prohibited Acts.
It shall be unlawful for any employer:
1) To deny any woman employee the benefits provided for in this Chapter or to
discharge any woman employed by him for the purpose of preventing her from
enjoying any of the benefits provided under this Code;
2) To discharge such woman on account of her pregnancy, or while on leave or in
confinement due to her pregnancy;
3) To discharge or refuse the admission of such woman upon returning to her work for
fear that she may again be pregnant.
OMNIBUS RULES: BOOK III, RULE XII
SECTION 13. Prohibited acts. — It shall be unlawful for any employer:
a) To discharge any woman employed by him for the purpose of preventing such woman
from enjoying the maternity leave, facilities and other benefits provided under the Code;
b) To discharge such woman employee on account of her pregnancy, or while on leave or in
confinement due to her pregnancy;
c) To discharge or refuse the admission of such woman upon returning to her work for fear
that she may be pregnant;
d) To discharge any woman or child or any other employee for having filed a complaint or
having testified or being about to testify under the Code; and
e) To require as a condition for a continuation of employment that a woman employee shall
not get married or to stipulate expressly 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.
32

ART. 136. [138] Classification of Certain Women Workers.
Any woman who is permitted or suffered to work, with or without compensation, in any
night club, cocktail lounge, massage clinic, bar or similar establishments under the
effective control or supervision of the employer for a substantial period of time as
determined by the Secretary of Labor and Employment, shall be considered as an employee
of such establishment for purposes of labor and social legislation.
OMNIBUS RULES: BOOK III, RULE XII
SECTION 4. Status of women workers in certain work places. — Any woman who is
permitted or suffered to work with or without compensation, in any night club, cocktail
lounge, beer house, massage clinic, bar or similar establishments, under the effective control
or supervision of the employer for a substantial period of time as determined by the Secretary
of Labor and Employment, shall be considered as an employee of such establishments for
purposes of labor and social legislation. No employer shall discriminate against such
employees or in any manner reduce whatever benefits they are now enjoying by reason of the
provisions of this Section.
OMNIBUS RULES: BOOK III, RULE XII, SECTIONS 1, 4-14
SECTION 1. General statement on coverage. — This Rule shall apply to all employers,
whether operating for profit or not, including educational, religious and charitable institutions,
except to the Government and to government-owned or controlled corporations and to
employers of household helpers and persons in their personal service insofar as such workers
are concerned.
SECTION 5. Night work of women employees. — Any woman employed in any industrial
undertaking may be allowed to work beyond 10:00 o'clock at night, or beyond 12:00 o'clock
midnight in the case of women employees of commercial or non-industrial enterprises, in any
of the following cases:
a) In cases of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquakes, 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;
b) which the employer would otherwise suffer;
c) Where the work is necessary to prevent serious loss of perishable goods;
d) Where the woman employee holds a responsible position of a managerial or technical
nature, or where the woman employee has been engaged to provide health and welfare
services;
e) Where the nature of the work requires the manual skill and dexterity of women and the
same cannot be performed with equal efficiency by male workers or where the
employment of women is the established practice in the enterprises concerned on the date
these Rules become effective; and
f) Where the women employees are immediate members of the family operating the
establishment or undertaking.
The Secretary of Labor and Employment shall from time to time determine cases analogous to
the foregoing for purposes of this Section.
SECTION 6. Agricultural work. — No woman, regardless of age, shall be permitted or
suffered to work, with or without compensation, in any agricultural undertaking at night time
unless she is given a rest period of not less than nine (9) consecutive hours, subject to the
provisions of Section 5 of this Rule.
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SECTION 7. Maternity leave benefits. — Every employer shall grant to a pregnant woman
employee who has rendered an aggregate service of at least six (6) months for the last twelve
(12) months immediately preceding the expected date of delivery, or the complete abortion or
miscarriage, maternity leave of at least two (2) weeks before and four (4) weeks after the
delivery, miscarriage or abortion, with full pay based on her regular or average weekly wages.
SECTION 8. Accreditation of leave credits. — Where the pregnant woman employee fails
to avail of the two-week pre-delivery leave, or any portion thereof, the same shall be added to
her post-delivery leave with pay.
SECTION 9. Payment of extended maternity leave. — When so requested by the woman
employee, the extension of her maternity leave beyond the four-week post-delivery leave shall
be paid by the employer from her unused vacation and/or sick leave credits, if any, or allowed
without pay in the absence of such leave credits, where the extended leave is due to illness
medically certified to arise out of her pregnancy, delivery, complete abortion or miscarriage
which renders her unfit for work.
SECTION 10. Limitation on leave benefits. — The maternity benefits provided herein shall
be paid by an employer only for the first four (4) deliveries, miscarriages, and/or complete
abortions of the employee from March 13, 1973, regardless of the number of employees and
deliveries, complete abortions or miscarriages the woman employee had before said date. For
purposes of determining the entitlement of a woman employee to the maternity leave benefits
as delimited herein, the total number of her deliveries, complete abortions, or miscarriages
after said date shall be considered regardless of the identity or number of employers she has
had at the time of such determination, provided that she enjoyed the minimum benefits
therefor as provided in these regulations.
SECTION 12. Relation to agreements. — Nothing herein shall prevent the employer and his
employees or their representatives from entering into any agreement with terms more
favorable to the employees than those provided herein, or be used to diminish any benefit
granted to the employees under existing laws, agreements, and voluntary employer practices.
R.A. 9710, MAGNA CARTA OF WOMEN, SECTION 1-3, 4 (B) & K, 22, 35, 41
Section 1. Short Title. –
This Act shall be known as "The Magna Carta of Women".
Section 2. Declaration of Policy. –
Recognizing that the economic, political, and sociocultural realities affect women's current
condition, the State affirms the role of women in nation building and ensures the
substantive equality of women and men. It shall promote empowerment of women and
pursue equal opportunities for women and men and ensure equal access to resources and to
development results and outcome. Further, the State realizes that equality of men and
women entails the abolition of the unequal structures and practices that perpetuate
discrimination and inequality. To realize this, the State shall endeavor to develop plans,
policies, programs, measures, and mechanisms to address discrimination and inequality in
the economic, political, social, and cultural life of women and men.
The State condemns discrimination against women in all its forms and pursues by all
appropriate means and without delay the policy of eliminating discrimination against
women in keeping with the Convention on the Elimination of All Forms of Discrimination
Against Women (CEDAW) and other international instruments consistent with Philippine
33

law. The State shall accord women the rights, protection, and opportunities available to
every member of society.
The State affirms women's rights as human rights and shall intensify its efforts to fulfill its
duties under international and domestic law to recognize, respect, protect, fulfill, and
promote all human rights and fundamental freedoms of women, especially marginalized
women, in the economic, social, political, cultural, and other fields without distinction or
discrimination on account of class, age, sex, gender, language, ethnicity, religion, ideology,
disability, education, and status. The State shall provide the necessary mechanisms to
enforce women's rights and adopt and undertake all legal measures necessary to foster and
promote the equal opportunity for women to participate in and contribute to the
development of the political, economic, social, and cultural realms.
The State, in ensuring the full integration of women's concerns in the mainstream of
development, shall provide ample opportunities to enhance and develop their skills, acquire
productive employment and contribute to their families and communities to the fullest of
their capabilities.
In pursuance of this policy, the State reaffirms the right of women in all sectors to
participate in policy formulation. planning, organization, implementation, management,
monitoring, and evaluation of all programs, projects, and services. It shall support policies,
researches, technology, and training programs and other support services such as financing,
production, and marketing to encourage active participation of women in national
development.
Section 3. Principles of Human Rights of Women. –
Human rights are universal and inalienable. All people in the world are entitled to them.
The universality of human rights is encompassed in the words of Article 1 of the Universal
Declaration of Human Rights, which states that all human beings are free and equal in
dignity and rights.
Human rights are indivisible. Human rights are inherent to the dignity of every human
being whether they relate to civil, cultural, economic, political, or social issues.
Human rights are interdependent and interrelated. The fulfillment of one right often
depends, wholly or in part, upon the fulfillment of others.
All individuals are equal as human beings by virtue of the inherent dignity of each human
person. No one, therefore, should suffer discrimination on the basis of ethnicity, gender,
age, language, sexual orientation, race, color, religion, political, or other opinion, national,
social, or geographical origin, disability, property, birth, or other status as established by
human rights standards.
All people have the right to participate in and access information relating to the decision-
making processes that affect their lives and well-being. Rights-based approaches require a
high degree of participation by communities, civil society, minorities, women, young
people, indigenous peoples, and other identified groups.
States and other duty-bearers are answerable for the observance of human rights. They
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have to comply with the legal norms and standards enshrined in international human rights
instruments in accordance with the Philippine Constitution. Where they fail to do so,
aggrieved rights-holders are entitled to institute proceedings for appropriate redress before
a competent court or other adjudicator in accordance with the rules and procedures
provided by law.
Section 4. Definitions. –
For purposes of this Act, the following terms shall mean:
xxx
(b) "Discrimination Against Women" refers to any gender-based distinction, exclusion, or
restriction which has the effect or purpose of impairing or nullifying the recognition,
enjoyment, or exercise by women, irrespective of their marital status, on a basis of equality
of men and women, of human rights and fundamental freedoms in the political, economic,
social, cultural, civil, or any other field.
It includes any act or omission, including by law; policy, administrative measure, or
practice, that directly or indirectly excludes or restricts women in the recognition and
promotion of their rights and their access to and enjoyment of opportunities, benefits, or
privileges.
A measure or practice of general application is discrimination against women if it fails to
provide for mechanisms to offset or address sex or gender-based disadvantages or
limitations of women, as a result of which women are denied or restricted in the
recognition and protection of their rights and in their access to and enjoyment of
opportunities, benefits, or privileges; or women, more than men, are shown to have
suffered the greater adverse effects of those measures or practices.
Provided, finally, That discrimination compounded by or intersecting with other grounds,
status, or condition, such as ethnicity, age, poverty, or religion shall be considered
discrimination against women under this Act.
xxx
(k) "Violence Against Women" refers to any act of gender-based violence that results in, or
is likely to result in, physical, sexual, or psychological harm or suffering to women,
including threats of such acts, coercion, or arbitrary deprivation of liberty, whether
occurring in public or in private life. It shall be understood to encompass, but not limited
to, the following:
1. Physical, sexual, psychological, and economic violence occurring in the
family, including battering, sexual abuse of female children in the household,
dowry-related violence, marital rape, and other traditional practices harmful to
women, non-spousal violence, and violence related to exploitation;
2. Physical, sexual, and psychological violence occurring within the general
community, including rape, sexual abuse, sexual harassment, and intimidation
at work, in educational institutions and elsewhere, trafficking in women, and
prostitution; and
3. Physical, sexual, and psychological violence perpetrated or condoned by the
State, wherever it occurs.
It also includes acts of violence against women as defused in Republic Acts No. 9208 and
9262.
34
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Section 22. Right to Decent Work. –
The State shall progressively realize and ensure decent work standards for women that
involve the creation of jobs of acceptable quality in conditions of freedom, equity, security,
and human dignity.
(a) Decent work involves opportunities for work that are productive and fairly
remunerative as family living wage, security in the workplace, and social protection for
families, better prospects for personal development and social integration, freedom for
people to express their concerns organize, participate in the decisions that affect their lives,
and equality of opportunity and treatment for all women and men.
(Republic Act No. 7610), the Anti-Sexual Harassment Act of 1995 (Republic Act No.
7877), the Anti-Rape Law of 1997 (Republic Act No. 8353), the Rape Victim Assistance
and Protection Act of 1998 (Republic Act No. 8505), the Anti-Trafficking in Persons Act
of 2003 (Republic Act No. 9208) and the Anti- Violence Against Women and Their
Children Act of 2004 (Republic Act No. 9262). If violence has been proven to be
perpetrated by agents of the State including, but not limited to, extrajudicial killings,
enforced disappearances, torture, and internal displacements, such shall be considered
aggravating offenses with corresponding penalties depending on the severity of the
offenses.

(b) The State shall further ensure:

1. Support services and gears to protect them from occupational and health hazards
taking into account women's maternal functions;
2. Support services that will enable women to balance their family obligations and
work responsibilities including, but not limited to, the establishment of day care
centers and breast-feeding stations at the workplace, and providing maternity
leave pursuant to the Labor Code and other pertinent laws;
3. Membership in unions regardless of status of employment and place of
employment; and
4. Respect for the observance of indigenous peoples' cultural practices even in the
workplace.

(c) In recognition of the temporary nature of overseas work, the State shall exert all efforts
to address the causes of out-migration by developing local employment and other economic
opportunities for women and by introducing measures to curb violence and forced and
involuntary displacement of local women. The State shall ensure the protection and
promotion of the rights and welfare of migrant women regardless of their work status, and
protect them against discrimination in wages, conditions of work, and employment
opportunities in host countries.

Section 35. Discrimination Against Women is Prohibited. –

Public and private entities and individuals found to have committed discrimination against
women shall be subject to the sanctions provided in Section 41 hereof. Violations of other
rights of women shall be subject to sanctions under pertinent laws and regulations.

Section 41. Penalties. - Upon finding of the CHR that a department, agency, or

instrumentality of government, government-owned and -controlled corporation, or local
government unit has violated any provision of this Act and its implementing rules and
regulations, the sanctions under administrative law, civil service, or other appropriate laws
shall be recommended to the Civil Service Commission and/or the Department of the
Interior and Local Government. The person directly responsible for the violation as well as
the head of the agency or local chief executive shall be held liable under this Act.
If the violation is committed by a private entity or individual, the person directly
responsible for the violation shall be liable to pay damages.

Filing a complaint under this Act shall not preclude the offended party from pursuing other
remedies available under the law and to invoke any of the provisions of existing laws
especially those recently enacted laws protecting women and children, including the
Women in Development and Nation Building Act (Republic Act No. 7192), the Special
Protection of Children Against Child Abuse, Exploitation and Discrimination Act

35

R.A. 7877, ANTI-SEXUAL HARASSMENT ACT OF 1995
Republic of the Philippines Congress of the Philippines Metro, Manila
Third Regular Session
Begun and held in Metro, Manila, on Monday, the twenty- fifth day of July, nineteen
hundred and ninety–four.
____
REPUBLIC ACT NO. 7877
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE
EMPLOYMENT, EDUACATION OR TRAINING ENVIRONMENT, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1. Title. –
This Act shall be known as the "Anti-Sexual Harassment Act of 1995."
Sec. 2. Declaration of Policy. –
The State shall value the dignity of every individual, enhance the development of it human
resources, guarantee full respect for human rights, and uphold the dignity of workers,
employees, applicants for employment, students or those undergoing training, instruction or
education. Towards this end, all forms of sexual harassment in the employment, education
or training environment are hereby declared unlawful.
Sec. 3. Work, Education or Training-related Sexual Harassment Defined. –
Work, education or training-related sexual harassment is committed by an employee,
manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or
any other person who, having authority, influence or moral ascendancy over another in a
work or training or education environment, demands, requests or otherwise requires any
sexual favor from the other, regardless of whether the demand, request or requirement for
submission is accepted by the object of said Act.
(a) In a work-related or employment environment, sexual harassment is committed when:
1. The sexual 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 privileges;
or the refusal to grant the sexual
2. favor results in limiting, segregating or classifying the employee which in a way
would discriminate, deprive or diminish employment opportunities or otherwise
adversely affect said employee;
3. The above acts would impair the employee’s rights or privileges under existing
labor laws; or
4. The above acts would result in an intimidating, hostile, or offensive environment
for the employee.
(b) In an education or training environment, sexual harassment is committed:
1. Against one who is under the care, custody or supervision of the offender;
2. Against one whose education, training, apprenticeship or tutorship is entrusted to
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the offender;
3. When the sexual favor is made a condition to the giving of a passing grade, or the
granting of honors and scholarships, or the payment of a stipend, allowance or
other benefits, privileges, or considerations; or
4. When the sexual advances result in an intimidating, hostile or offensive
environment for the student, trainee or apprentice.
Any person who directs or induces another to commit any act of sexual harassment as
herein defined, or who cooperates in the commission thereof by another without which it
would not have been committed, shall also be held liable under this Act.
Sec.4. Duty of the Employer or Head of Office in a Work-related, Education or Training
Environment. –
It shall be the duty of the employer or the head of the work-related, educational or training
environment or institution, to prevent or deter the commission of acts of sexual harassment
and to provide the procedures for the resolution, settlement or prosecution of acts of sexual
harassment. Towards this end, the employer or head of office shall:
(a) Promulgate appropriate rules and regulations in consultation with the jointly approved
by the employees or students or trainees, through their duly designated representatives,
prescribing the procedure for the investigation or sexual harassment cases and the
administrative sanctions therefor.
Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful
acts of sexual harassment.
The said rules and regulations issued pursuant to this section (a) shall include, among
others, guidelines on proper decorum in the workplace and educational or training
institutions.
(b) Create a committee on decorum and investigation of cases on sexual harassment. The
committee shall conduct meetings, as the case may be, with other officers and employees,
teachers, instructors, professors, coaches, trainors and students or trainees to increase
understanding and prevent incidents of sexual harassment. It shall also conduct the
investigation of the alleged cases constituting sexual harassment.
In the case of a work-related environment, the committee shall be composed of at least one
(1) representative each from the management, the union, if any, the employees from the
supervisory rank, and from the rank and file employees.
In the case of the educational or training institution, the committee shall be composed of at
least one (1) representative from the administration, the trainors, teachers, instructors,
professors or coaches and students or trainees, as the case maybe.
The employer or head of office, educational or training institution shall disseminate or post
a copy of this Act for the information of all concerned.
Sec. 5. Liability of the Employer, Head of Office, Educational or Training Institution. –
36
 Zabala 3D 2021

The employer or head of office, educational training institution shall be solidarily liable for
damage arising from the acts of sexual harassment committed in the employment,
education or training environment if the employer or head of office, educational or training
institution is informed of such acts by the offended party and no immediate action is taken
thereon.
Sec. 6. Independent Action for Damages. –
Nothing in this Act shall preclude the victim of work, education or training-related sexual
harassment from instituting a separate and independent action for damages and other
affirmative relief.

Sec. 7. Penalties. –
Any person who violates the provisions of this Act shall, upon conviction, be penalized by
imprisonment of not less than one (1) month nor more than six (6) months, or a fine of not
less than Ten thousand pesos (P10,000) nor more than Twenty thousand pesos (P20,000),
or both such fine and imprisonment at the discretion of the court.

Any action arising from the violation of the provision of this Act shall prescribe in three (3)
years.

Sec. 8. Separability Clause –

If any portion or provision of this Act is declared void and unconstitutional, the remaining
portions or provisions hereof shall not be affected by such declaration.

Sec.9. Repealing Clause. –

All laws, decrees, orders, rules and regulations, other issuances, or parts thereof
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Sec.10. Effectivity Clause. –

This Act shall take effect fifteen (15) days after its complete publication in at least two (2)
national newspaper of general circulation.

37

MATERNITY LEAVE AND PATERNITY LEAVE
R.A. 1161, SOCIAL SECURITY ACT, AS AMENDED, SECTION 14-A
Section 14-A. Maternity Leave Benefit.*
A female member who has paid at least three (3) monthly contributions in the twelve-
month period immediately preceding the semester of her childbirth or miscarriage shall be
paid a daily maternity benefit equivalent to one hundred percent (100%) of her average
daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian
delivery, subject to the following conditions:
a) That the employee shall have notified her employer of her pregnancy and the probable
date of her childbirth, which notice shall be transmitted to the SSS in accordance with
the rules and regulations it may provide;
b) The full payment shall be advanced by the employer within thirty (30) days from the
filing of the maternity leave application;
c) That payment of daily maternity benefits shall be a bar to the recovery of sickness
benefits provided by this Act for the same period for which daily maternity benefits
have been received;
d) That the maternity benefits provided under this section shall be paid only for the first
four (4) deliveries or miscarriages;
e) That the SSS shall immediately reimburse the employer of one hundred percent
(100%) of the amount of maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such payment and legality thereof; and
f) That if an employee member should give birth or suffer miscarriage without the
required contributions having been remitted for her by her employer to the SSS, or
without the latter having been previously notified by the employer of the time of the
pregnancy, the employer shall pay to the SSS damages equivalent to the benefits
which said employee member would otherwise have been entitled to.
*from:
REPUBLIC ACT No. 11199: Social Security Act of 2018
An Act Rationalizing and Expanding the Powers and Duties of the Social Security
Commission to Ensure the Long-Term Viability of the Social Security System, Repealing
for the Purpose Republic Act No. 1161, as Amended by Republic Act No. 8282,
Otherwise Known as the "Social Security Act of 1997"
RA 11210, 105-DAY EXPANDED MATERNITY LEAVE LAW
Seventeenth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand
eighteen.
REPUBLIC ACT No. 11210
An Act Increasing the Maternity Leave Period to One Hundred Five (105) Days for Female
Workers With an Option to Extend for an Additional Thirty (30) Days Without Pay, and
Granting an Additional Fifteen (15) Days for Solo Mothers, and for Other Purposes
Be it enacted by the Senate and House of Representatives of the Philippine Congress
Assembled:
Section 1. Short Title. –
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This Act shall be known and cited as the "105-Day Expanded Maternity Leave Law".
Section 2. Declaration of Policy. —
It is the declared policy of the State under Article XIII, Section 14 of the 1987 Constitution
to protect and promote the rights and welfare of working women, taking into account them
maternal functions, and to provide an enabling environment in which their full potential
can be achieved.
Article II, State Policies, Section 12 of the 1987 Constitution provides that the State
recognizes the sanctity of family life and shall protect and strengthen the family as the
basic autonomous social institution and that it shall equally protect the life of the mother
and the life of the unborn from conception. Moreover, Sections 17 and 22 of Republic Act
No. 9710, otherwise known as "The Magna Carta of Women", provides for women’s rights
to health and decent work.
To achieve these, and in recognition of women’s maternal function as a social
responsibility, the State shall institutionalize a mechanism to expand the maternity leave
period of women workers. This will provide them with ample transition time to regain
health and overall wellness as well as to assume maternal roles before resuming paid work.
This Act is consistent with local and international legal instruments that protect and
promote the rights of women.
Section 3. Grant of Maternity Leave.—
All covered female workers in government and the private sector, including those in the
informal economy, regardless of civil status or the legitimacy of her child, shall be granted
one hundred five (105) days maternity leave with full pay and an option to extend for an
additional thirty (30) days without pay: Provided, That in case the worker qualifies as a
solo parent under Republic Act No. 8972, or the "Solo Parents’ Welfare Act", the worker
shall be granted an additional fifteen (15) days maternity leave with full pay.
Enjoyment of maternity leave cannot be deferred but should be availed of either before or
after the actual period of delivery in a continuous and uninterrupted manner, not exceeding
one hundred five (105) days, as the case may be.
Maternity leave shall be granted to female workers in every instance of pregnancy,
miscarriage or emergency termination of pregnancy, regardless of frequency: Provided,
That for cases of miscarriage or emergency termination of pregnancy, sixty (60) days
maternity leave with full pay shall be granted.
Section 4. Maternity Leave for Female Workers in the Public Sector.—
Any pregnant female worker in the government service, regardless of employment status,
in National Government Agencies (NGAs), Local Government Units (LGUs),
Government-Owned or -Controlled Corporations (GOCCs), or State Universities and
Colleges (SUCs), shall be granted a maternity leave of one hundred five (105) days with
full pay regardless if the delivery was normal or caesarian: Provided, That, in case the
employee qualifies as a solo parent under Republic Act No. 8972, or the "Solo Parents’
Welfare Act", the employee shall be paid an additional maternity benefit of fifteen (15)
days. An additional maternity leave of thirty (30) days, without pay, can be availed of, at
the option of the female worker: Provided, further, That, the head of the agency shall be
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given due notice, in writing, at least forty-five (45) days before the end of her maternity
leave: Provided, finally, That no prior notice shall be necessary in the event of a medical
emergency but subsequent notice shall be given to the head of the agency.
Maternity leave of sixty (60) days, with full pay, shall be granted for miscarriage or
emergency termination of pregnancy.
Section 5. Maternity Leave for Female Workers in the Private Sector.—
Any pregnant female worker in the private sector shall be granted a maternity leave of one
hundred five (105) days with full pay, regardless of whether she gave birth via caesarian
section or natural delivery, while maternity leave of sixty (60) days with full pay shall be
granted for miscarriage or emergency termination of pregnancy.
(a) A female Social Security System (SSS) member who has paid at least three (3) monthly
contributions in the twelve (12)-month period immediately preceding the semester of her
childbirth, miscarriage, or emergency termination of pregnancy shall be paid her daily
maternity benefit which shall be computed based on her average monthly salary credit for
one hundred five (105) days, regardless of whether she gave birth via caesarian section or
natural delivery, subject to the following conditions:
1. That the female worker shall have notified her employer of her pregnancy and the
probable date of her childbirth, which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide;
2. That the full payment shall be advanced by the employer within thirty (30) days
from the filing of the maternity leave application;
3. That payment of daily maternity benefits shall be a bar to the recovery of
sickness benefits provided under Republic Act No. 1161, as amended, for the
same period for which daily maternity benefits have been received;
4. That the SSS shall immediately reimburse the employer of one hundred percent
(100%) of the amount of maternity benefits advanced to the female worker by the
employer upon receipt of satisfactory and legal proof of such payment; and
5. That if a female worker should give birth or suffer a miscarriage or emergency
termination of pregnancy without the required contributions having been remitted
for her by her employer to the SSS, or without the latter having been previously
notified by the employer of the time of the pregnancy, the employer shall pay to
the SSS damages equivalent to the benefits which said female member would
otherwise have been entitled to.
In case the employee qualifies as a solo parent under Republic Act No. 8972, or the "Solo
Parents’ Welfare Act", the employee shall be paid an additional maternity benefit of fifteen
(15) days.
(b) An additional maternity leave of thirty (30) days, without pay, can be availed of, at the
option of the female worker: Provided, That the employer shall be given due notice, in
writing, at least forty-five (45) days before the end of her maternity leave: Provided,
further, That no prior notice shall be necessary in the event of a medical emergency but
subsequent notice shall be given to the head of the agency.
(c) Workers availing of the maternity leave period and benefits must receive their full pay.
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Employers from the private sector shall be responsible for payment of the salary
differential between the actual cash benefits received from the SSS by the covered female
workers and their average weekly or regular wages, for the entire duration of the maternity
leave, with the following exceptions, subject to the guidelines to be issued by the
Department of Labor and Employment (DOLE):
(1) Those operating distressed establishments;
(2) Those retail/service establishments and other enterprises employing not more
than ten (10) workers;
(3) Those considered as micro-business enterprises and engaged in the production,
processing, or manufacturing of products or commodities including agro-
processing, trading, and services, whose total assets are not more than Three
million pesos (₱3,000,000.00); and
(4) Those who are already providing similar or more than the benefits herein
provided.
Provided, That said exemptions shall be subject to an annual submission of a justification
by the employer claiming exemption for the approval of the DOLE.
Section 6. Allocation of Maternity Leave Credits.—
Any female worker entitled to maternity leave benefits as provided for herein may, at her
option, allocate up to seven (7) days of said benefits to the child’s father, whether or not the
same is married to the female worker: Provided, That in the death, absence, or incapacity
of the former, the benefit may be allocated to an alternate caregiver who may be a relative
within the fourth degree of consanguinity or the current partner of the female worker
sharing the same household, upon the election of the mother taking into account the best
interests of the child: Provided, further, That written notice thereof is provided to the
employers of the female worker and alternate caregiver: Provided, furthermore, That this
benefit is over and above that which is provided under Republic Act No. 8187, or the
"Paternity Leave Act of 1996": Provided, finally, That in the event the beneficiary female
worker dies or is permanently incapacitated, the balance of her maternity leave benefits
shall accrue to the father of the child or to a qualified caregiver as provided above.
Section 7. Maternity Leave for Women Regardless of Civil Status.—
All female workers in the government and female members of the SSS, regardless of their
civil status, shall be granted maternity leave, with full pay, upon compliance with the
preceding section.
Section 8. Maternity Leave With Pay in Case of Childbirth, Miscarriage, or Emergency
Termination of Pregnancy After the Termination of an Employee’s Service.—
Maternity leave with full pay shall be granted even if the childbirth, miscarriage, or
emergency termination of pregnancy occurs not more than fifteen (15) calendar days after
the termination of an employee’s service, as her right thereto has already accrued:
Provided, That such period is not applicable when the employment of the pregnant woman
worker has been terminated without just cause, in which case the employer will pay her the
full amount equivalent to her salary for one hundred five (105) days for childbirth and sixty
(60) days for miscarriage or emergency termination of pregnancy based on her full pay, in
addition to the other applicable daily cash maternity benefits that she should have received
had her employment not been illegally terminated.
Section 9. Maternity Leave Credits.—
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The maternity leave can be credited as combinations of prenatal and postnatal leave as long
as it does not exceed one hundred five (105) days and provided that compulsory postnatal
leave shall not be less than sixty (60) days.
Section 10. Maternity Leave Benefits for Women in the Informal Economy and
Voluntary Contributors to the SSS.—
Maternity benefits shall cover all married and unmarried women, including female workers
in the informal economy.
Female workers in the informal economy are entitled to maternity leave benefits if they
have remitted to the SSS at least three (3) monthly contributions in the twelve (12)-month
period immediately preceding the semester of her childbirth, miscarriage, or emergency
termination of pregnancy.
Section 11. Maternity Benefits for Female Workers Who are Non-Members of the SSS.
— Female workers who are neither voluntary nor regular members of the SSS shall be
governed by the Philippine Health Insurance Corporation (PhilHealth) Circular No. 022-
2014 or the "Social Health Insurance Coverage and Benefits for Women About to Give
Birth".
Section 12. Maternity Leave of a Female Worker With Pending Administrative Case. —
The maternity leave benefits granted under this Act shall be enjoyed by a female worker in
the government service and in the private sector even if she has a pending administrative
case.
Section 13. Maternity Leave for Female National Athletes.—
In the event a national athlete becomes pregnant, she will be referred to the team physician
or an accredited physician of the Philippine Sports Commission (PSC) or an obstetrician-
gynecologist to determine her fitness to continue training. She will be allowed to
participate in all team-related activities, unless the physician advises that participation is
not medically safe or should be limited. Upon medical advice, she shall go on maternity
leave until cleared to return to training. She shall continue receiving her allowance and be
entitled to the same benefits while on maternity leave prior to childbirth and up to six (6)
months after, unless she can resume sooner as advised by her physician, in which case, she
will be entitled to the allowance and benefits she had prior to pregnancy: Provided, That a
female national athlete employed in the public sector shall not receive double
compensation or benefits.
Section 14. Non-Diminution of Benefits. –
Nothing in this Act shall be construed as to diminish existing maternity benefits currently
enjoyed whether or not these are granted under collective bargaining agreements (CBA) or
present laws, if the same are more beneficial to the female worker. Any other working
arrangement which the female worker shall agree to, during the additional maternity leave
period, shall be allowed: Provided, That this shall be consented to in writing by the female
worker and shall primarily uphold her maternal functions and the requirements of postnatal
care.
Section 15. Security of Tenure. –
Those who avail of the benefits of this Act, whether in the government service or private
sector, shall be assured of security of tenure. As such, the exercise of this option by them
shall not be used as basis for demotion in employment or termination. The transfer to a
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parallel position or reassignment from one organizational unit to another in the same
agency or private enterprise shall be allowed: Provided, That it shall not involve a
reduction in rank, status, salary, or otherwise amount to constructive dismissal.
Section 16. Non-Discrimination. –
No employer whether in the public or private sector shall discriminate against the
employment of women in order to avoid the benefits provided for in this Act.
Section 17. Periodic Review. –
The Civil Service Commission (CSC), the DOLE, the SSS, and the Gender Ombud of the
Commission on Human Rights (CHR), in consultation with trade unions, labor
organizations, and employers’ representatives shall within one (1) month after the
effectivity of this Act conduct a review of the maternity leave benefits of female workers in
the government service and the private sector, respectively. Thereafter, they shall include
maternity leave benefits in their valuation report conducted every four (4) years for the SSS
and the DOLE and every three (3) years for the CSC, or more frequently as may be
necessary, with the end in view of meeting the needs of pregnant women and newly-born
infants, and improving their welfare.
Section 18. Penalties. –
Whoever fails or refuses to comply with the provisions of this Act shall be punished by a
fine of not less than Twenty thousand pesos (₱20,000.00) nor more than Two hundred
thousand pesos (₱200,000.00), and imprisonment of not less than six (6) years and one (1)
day nor more than twelve (12) years or both. If the act or omission penalized by this Act
shall be committed by an association, partnership, corporation, or any other institution, its
managing head, directors, or partners shall be liable to the penalties provided in this Act for
the offense.
Failure on the part of any association, partnership, corporation, or private enterprise to
comply with the provisions of this Act shall be a ground for non-renewal of business
permits.
Section 19. Implementing Rules and Regulations. –
The CSC, the DOLE, and the SSS shall issue the necessary rules and regulations for the
effective implementation of this Act within sixty (60) days from the effectivity of the same.
Section 20. Separability Clause. –
If any provision of this Act is declared unconstitutional or otherwise invalid, the validity of
the other provisions shall not be affected thereby.
Section 21. Repealing Clause. –
All laws, decrees, orders, rules and regulations or parts thereof inconsistent with this Act
are hereby repealed or modified accordingly.
Section 22. Effectivity. –
This Act shall take effect after fifteen (15) days from its publication in the Official Gazette
or in a newspaper of general circulation.
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R.A. 8187, PATERNITY LEAVE ACT
AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULLPAY
TO ALL MARRIED EMPLOYEES IN THE PRIVATE AND PUBLIC SECTORS FOR
THE FIRST FOUR (4) DELIVERIES OF THE LEGITIMATE SPOUSE WITH WHOM
HE IS COHABITING AND FOR OTHER PURPOSES
SECTION 1. Short Title. –
This Act shall be known as the "Paternity Leave Act of 1996".
 
The rules on paternity leave of employees in the public sector shall be promulgated by the
Civil Service Commission.
SECTION 3. Conditions for entitlement of paternity leave benefits. —
A married male employee shall be entitled to paternity benefits provided that:
a. he is employed at the time of delivery of his child;
b. he has notified his employer of the pregnancy of his wife and her expected date of
delivery subject to the provisions of Section 4 hereof; and
c. his wife has given birth, suffers a miscarriage or an abortion.

SECTION 4. Notification. —
SECTION 3. Definition of Term. – As soon as the married male employee learns that his spouse is pregnant, he shall inform his
For purposes of this Act,  Paternity Leave refers to the benefits granted to a married  male employer of such pregnancy and the expected date of delivery within a reasonable period of
employee allowing him not to report for work for seven (7) days but continues to earn the time. The employee shall accomplish a Paternity Notification Form to be provided for by the
compensation therefor, on the  condition that his spouse has delivered a child or suffered a  employer and submit the same to the latter, together with a copy of his marriage contract, or
miscarriage for purposes of enabling him to effectively lend support to his wife in her where not applicable, any proof of marriage. Provided, That this notification requirement shall
period of recovery and/or in the  nursing of the newly-born child. not apply in cases of miscarriage or abortion.

IRR:
SECTION 1. Definition of Terms. —
As used in this Rules, the following terms shall have the meaning as indicated hereunder:
a. “Paternity Leave” refers to the leave credits granted to a married male employee to allow
him to earn compensation for seven (7) working days without reporting for work,
provided that his spouse has delivered a child or had a miscarriage or an abortion for the
purpose of lending support to his wife during her period of recovery and/or the nursing of
the newly born child.
b. “Employee” refers to any person who performs services for an employer and receives
compensation therefor, provided an employer- employee relationship exists between
them.
c. “Delivery” refers to childbirth, miscarriage or abortion.
d. “Spouse” refers to the lawful wife. For this purpose, lawful wife refers to a woman who
is legally married to the male employee concerned.
e. “Cohabiting” refers to the obligation of the husband and wife to live together .
Any employee who has availed of the paternity benefits shall, within a reasonable period of
time, submit a copy of the birth certificate of the newly born child, death or medical certificate
in case of miscarriage or abortion, duly signed by the attending physician or midwife showing
actual date of childbirth, miscarriage or abortion, as the case may be.
SECTION 5. Availment. —
The paternity benefits set forth herein may be enjoyed by the qualified employee before,
during or after the delivery by his wife; provided, that the total number of days shall not
exceed seven (7) working days for each delivery. Provided, further, that this benefit shall be
availed of not later than sixty (60) days after the date of said delivery.
CSC MEMORANDUM CIRCULAR NO. 01-2016

SECTION 2.
Notwithstanding any law, rules and regulations to the contrary, every married male
employee in the private and public sectors shall be entitled to a paternity leave of seven (7)
days with full pay for the first four (4) deliveries of the legitimate spouse with whom he is
cohabiting. The male employee applying for paternity leave shall notify his employer of the
pregnancy of his legitimate spouse and the expected date of such delivery.

For purposes, of this Act, delivery shall include childbirth or any miscarriage.

IRR:
SECTION 2. Coverage. —
Every married male employee in the private sector shall be entitled to paternity leave benefits
of seven (7) working days with full pay for the first four (4) deliveries by his lawful spouse
under such terms and conditions as hereinafter provided.

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SECTION 6. Benefits. —
The employee is entitled to seven (7) working days paternity leave with pay, consisting of
basic salary, all allowances and other monetary benefits.
SECTION 7. Non-Conversion of benefits. —
In the event that the paternity leave benefit is not availed of, said leave shall not be convertible
to cash.
SECTION 4. The Secretary of Labor and Employment, the Chairman of the Civil Service
Commission and the Secretary of Health shall, within thirty (30) days from the effectivity
of this Act, issue such rules and regulations necessary for the  proper implementation of the
provisions hereof.
 
IRR:
SECTION 9. Non-diminution clause. — Nothing in these Rules shall be construed to reduce
or replace any existing benefits of any kind granted under existing laws, decrees, executive
orders; or any contract, agreement or policy between employer and employee.
SECTION 10. Repealing Clause. — All laws, ordinances, rules, regulations, issuances, or
parts thereof which are inconsistent with these Rules are deemed repealed or modified
accordingly.
SECTION 11. Separability Clause. — If any provision or portion of these Rules is declared
void or unconstitutional; the remaining portions or provisions hereof shall continue to be valid
and effective.

SECTION 12. Effectivity. — These Rules shall have retroactive effect on July 5, 1996, when
SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found Republic Act No. 8187 became effective.
violating this Act or the rules and regulations promulgated thereunder shall be punished by
a fine not exceeding Twenty-five thousand pesos (P25,000) or imprisonment of not less
than thirty (30) days nor more than six (6) months.

If the violation is committed by a corporation, trust or firm, partnership, association or any

other entity, the penalty of imprisonment shall be imposed on the entity's
responsible officers, including, but not limited to, the president, vice-president, chief
executive officer, general manager, managing director or partner directly responsible
therefor.

SECTION 8. Penalty. — Any person, corporation, trust, firm, partnership, association or

entity found violating any provision of these Rules shall be penalized by a fine not exceeding
twenty five thousand pesos (P25,000) or imprisonment of not less than thirty (30) days nor
more than six (6) months.

If the violation is committed by a corporation, trust firm, partnership, association or any other
entity, the penalty of imprisonment shall be imposed on the entity’s responsible officers,
including, but not limited to, the president, vice-president, chief executive officer, general
manager, managing director or partner directly responsible therefor.

SECTION 6. Nondiminution Clause. –

Nothing in this Act shall be construed to reduce any existing benefits of any form   granted
under existing laws, decrees, executive orders, or any contract agreement or policy between
employer and employee.

SECTION 7. Repealing Clause. –

All laws, ordinances, rules,  regulations, issuances, or parts thereof which are inconsistent 
with this Act are hereby repealed or modified accordingly.
 
SECTION 8. Effectivity. - This Act shall take effect (15)  days from its publication in the
Official Gazette or in at least  two (2) newspapers of national circulation.

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VAWC VICTIM’S LEAVE 4. controlling the victims' own money or properties or solely controlling the
R.A. 9262, ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT, SECTION 3 (A), conjugal money or properties.
5, 43
SECTION 3. Definition of Terms.-
As used in this Act, 
(a) "Violence against women and their children" refers to any act or a series of acts
committed by any person against a woman who is his wife, former wife, or against a
SECTION 5. Acts of Violence Against Women and Their Children.-
woman with whom the person has or had a sexual or dating relationship, or with whom he
has a common child, or against her child whether legitimate or illegitimate, within or The crime of violence against women and their children is committed through any of the
without the family abode, which result in or is likely to result in physical, sexual, following acts: 
psychological harm or suffering, or economic abuse including threats of such acts, battery, a. Causing physical harm to the woman or her child; 
assault, coercion, harassment or arbitrary deprivation of liberty. It includes, but is not b. Threatening to cause the woman or her child physical harm; 
limited to, the following acts:  c. Attempting to cause the woman or her child physical harm; 
d. Placing the woman or her child in fear of imminent physical harm; 
A. "Physical Violence" refers to acts that include bodily or physical harm;  e. Attempting to compel or compelling the woman or her child to engage in conduct
which the woman or her child has the right to desist from or desist from conduct
B. "Sexual violence" refers to an act which is sexual in nature, committed against a which the woman or her child has the right to engage in, or attempting to restrict or
woman or her child. It includes, but is not limited to:  restricting the woman's or her child's freedom of movement or conduct by force or
a. rape, sexual harassment, acts of lasciviousness, treating a woman or her threat of force, physical or other harm or threat of physical or other harm, or
child as a sex object, making demeaning and sexually suggestive remarks,
physically attacking the sexual parts of the victim's body, forcing her/him to intimidation directed against the woman or child. This shall include, but not limited to,
watch obscene publications and indecent shows or forcing the woman or her the following acts committed with the purpose or effect of controlling or restricting
child to do indecent acts and/or make films thereof, forcing the wife and the woman's or her child's movement or conduct: 
mistress/lover to live in the conjugal home or sleep together in the same 1. Threatening to deprive or actually depriving the woman or her child of
room with the abuser;  custody to her/his family; 
b. acts causing or attempting to cause the victim to engage in any sexual 2. Depriving or threatening to deprive the woman or her children of financial
activity by force, threat of force, physical or other harm or threat of physical
support legally due her or her family, or deliberately providing the woman's
or other harm or coercion; 
c. Prostituting the woman or child.  children insufficient financial support; 
3. Depriving or threatening to deprive the woman or her child of a legal right; 
C. "Psychological violence" refers to acts or omissions causing or likely to cause 4. Preventing the woman in engaging in any legitimate profession, occupation,
mental or emotional suffering of the victim such as but not limited to intimidation, business or activity or controlling the victim's own mon4ey or properties, or
harassment, stalking, damage to property, public ridicule or humiliation, repeated solely controlling the conjugal or common money, or properties; 
verbal abuse and mental infidelity. It includes causing or allowing the victim to f. Inflicting or threatening to inflict physical harm on oneself for the purpose of
witness the physical, sexual or psychological abuse of a member of the family to controlling her actions or decisions; 
which the victim belongs, or to witness pornography in any form or to witness abusive g. Causing or attempting to cause the woman or her child to engage in any sexual
injury to pets or to unlawful or unwanted deprivation of the right to custody and/or
activity which does not constitute rape, by force or threat of force, physical harm, or
visitation of common children. 
through intimidation directed against the woman or her child or her/his immediate
family; 
D. "Economic abuse" refers to acts that make or attempt to make a woman financially
dependent which includes, but is not limited to the following:  h. Engaging in purposeful, knowing, or reckless conduct, personally or through another,
1. withdrawal of financial support or preventing the victim from engaging in that alarms or causes substantial emotional or psychological distress to the woman or
any legitimate profession, occupation, business or activity, except in cases her child. This shall include, but not be limited to, the following acts: 
wherein the other spouse/partner objects on valid, serious and moral grounds 1. Stalking or following the woman or her child in public or private places; 
as defined in Article 73 of the Family Code;  2. Peering in the window or lingering outside the residence of the woman or
2. deprivation or threat of deprivation of financial resources and the right to the her child; 
use and enjoyment of the conjugal, community or property owned in
3. Entering or remaining in the dwelling or on the property of the woman or
common; 
3. destroying household property;  her child against her/his will; 
4. Destroying the property and personal belongings or inflicting harm to

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animals or pets of the woman or her child; and 

5. Engaging in any form of harassment or violence; 
i. Causing mental or emotional anguish, public ridicule or humiliation to the woman or
her child, including, but not limited to, repeated verbal and emotional abuse, and
denial of financial support or custody of minor children of access to the woman's
child/children.

SECTION 43. Entitled to Leave. – 

Victims under this Act shall be entitled to take a paid leave of absence up to ten (10) days
in addition to other paid leaves under the Labor Code and Civil Service Rules and
Regulations, extendible when the necessity arises as specified in the protection order.

Any employer who shall prejudice the right of the person under this section shall be
penalized in accordance with the provisions of the Labor Code and Civil Service Rules and
Regulations. Likewise, an employer who shall prejudice any person for assisting a co-
employee who is a victim under this Act shall likewise be liable for discrimination.

RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9262, SECTION 42

Section 42. Ten-day paid leave in addition to other leave benefits. - At any time during the
application of any protection order, investigation, prosecution and/or trial of the criminal case,
a victim of VAWC who is employed shall be entitled to a paid leave of up to ten (10) days in
addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations
and other existing laws and company policies, extendible when the necessity arises as
specified in the protection order. The Punong Barangay/kagawad or prosecutor or the Clerk of
Court, as the case may be, shall issue a certification at no cost to the woman that such an
action is pending, and this is all that is required for the employer to comply with the 10-day
paid leave. For government employees, in addition to the aforementioned certification, the
employee concerned must file an application for leave citing as basis R.A. 9262. The
administrative enforcement of this leave entitlement shall be considered within the jurisdiction
of the Regional Director of the DOLE under Article 129 of the Labor Code of the Philippines,
as amended, for employees in the private sector, and the Civil Service Commission, for
government employees.

The availment of the ten day-leave shall be at the option of the woman employee, which shall
cover the days that she has to attend to medical and legal concerns. Leaves not availed of are
non- cumulative and not convertible to cash.

The employer/agency head who denies the application for leave, and who shall prejudice the
victim-survivor or any person for assisting a co-employee who is a victim-survivor under the
Act shall be held liable for discrimination and violation of R.A 9262.

The provision of the Labor Code and the Civil Service Rules and Regulations shall govern the
penalty to be imposed on the said employer/agency head.

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SOLO PARENT’S LEAVE
R.A. 8972, SOLO PARENTS’ WELFARE ACT OF 2000, SECTION 3 (A), 6-8
Section 3. Definition of Terms. –
Whenever used in this Act, the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the following categories:
(1) A woman who gives birth as a result of rape and other crimes against chastity even
without a final conviction of the offender: Provided, That the mother keeps and raises the
child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood while the spouse is
detained or is serving sentence for a criminal conviction for at least one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or
mental incapacity of spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or
de facto separation from spouse for at least one (1) year, as long as he/she is entrusted with
the custody of the children;
(6) Parent left solo or alone with the responsibility of parenthood due to declaration of
nullity or annulment of marriage as decreed by a court or by a church as long as he/she is
entrusted with the custody of the children;
(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of
spouse for at least one (1) year;
(8) Unmarried mother/father who has preferred to keep and rear her/his child/children
instead of having others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or children;
(10) Any family member who assumes the responsibility of head of family as a result of the
death, abandonment, disappearance or prolonged absence of the parents or solo parent.
A change in the status or circumstance of the parent claiming benefits under this Act, such
that he/she is no longer left alone with the responsibility of parenthood, shall terminate
his/her eligibility for these benefits.
Section 6. Flexible Work Schedule. –
The employer shall provide for a flexible working schedule for solo parents: Provided, That
the same shall not affect individual and company productivity: Provided, further, That any
employer may request exemption from the above requirements from the DOLE on certain
meritorious grounds.
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IRR: SEC. 16. Flexible Work Schedule. — The employer shall provide for a flexible work
schedule for solo parents: Provided, That the same shall not affect individual and company
productivity: Provided further, That any employer may request exemption from the above
requirements from the DOLE on certain meritorious grounds.
In the case of employees in the government service, flexible working hours will be subject to
the discretion of the head of the agency. In no case shall the weekly working hours be reduced
in the event the agency adopts the flexible working hours schedule format (flexi- time). In the
adoption of flexi-time, the core working hours shall be prescribed taking into consideration the
needs of the service.
Section 7. Work Discrimination. - No employer shall discriminate against any solo parent
employee with respect to terms and conditions of employment on account of his/her status.
IRR:
SEC. 17. Work Discrimination. — No employer shall discriminate against any solo parent
employee with respect to terms and conditions of employment on account of his/her status.
Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental
leave of not more than seven (7) working days every year shall be granted to any solo
parent employee who has rendered service of at least one (1) year.
IRR:
SEC. 18. Parental Leave. — In addition to leave privileges under existing laws, parental
leave of not more than seven (7) working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year. The seven-day parental leave shall
be non-cumulative.
IMPLEMENTING RULES AND REGULATIONS OF R.A. NO.8972, SECTION 16-21
SEC. 19. Conditions for Entitlement of Parental Leave. — A solo parent shall be entitled to
parental leave provided that:
a. He/She has rendered at least one (1) year of service whether continuous or broken at
the time of the effectivity of the Act;
b. He/She has notified his/her employer of the availment thereof within a reasonable
time period; and
c. He/She has presented a Solo Parent Identification Card to his/her employer.
SEC. 20. Non-conversion of Parental Leave. —
In the event that the parental leave is not availed of, said leave shall not be convertible to cash
unless specifically agreed upon previously. However, if said leave were denied an employee
as a result of non-compliance with the provisions of these Rules by an employer, the
aforementioned leave may be used as a basis for the computation of damages.
SEC. 21. Crediting of Existing Leave. —
If there is an existing or similar benefit under a company policy, or a collective bargaining
agreement or collective negotiation agreement the same shall be credited as such. If the same
is greater than the seven (7) days provided for in the Act, the greater benefit shall prevail.
Emergency or contingency leave provided under a company policy or a collective bargaining
agreement shall not be credited as compliance with the parental leave provided for under the
Act and these Rules.
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SPECIAL LEAVE
R.A. 9710, MAGNA CARTA OF WOMEN, SECTION 18
Section 18. Special Leave Benefits for Women. –
A woman employee having rendered continuous aggregate employment service of at least
6 months for the last 12 months shall be entitled to a special leave benefit of 2 months with
full pay based on her gross monthly compensation following surgery caused by
gynecological disorders

IMPLEMENTING RULES AND REGULATIONS OF R.A. NO. 9710, SECTION 7 (M), 21

SECTION 7. Definition of Terms –

As used in these Rules and Regulations, the following terms shall mean:
xxx
M. “Gynecological disorders” refers to disorders that would require surgical procedures such
as, but not limited to, dilatation and curettage and those involving female reproductive organs
such as the vagina, cervix, uterus, fallopian tubes, ovaries, breast, adnexa and pelvic floor, as
certified by a competent physician. For purposes of the Act and these Rules and Regulations,
gynecological surgeries shall also include hysterectomy, ovariectomy, and mastectomy;

SECTION 21. Special Leave Benefits for Women

A. Any female employee in the public and private sector regardless of age and civil status
shall be entitled to a special leave of 2 months with full pay based on her gross monthly
compensation subject to existing laws, rules and regulations due to surgery caused by
gynecological disorders under such terms and conditions:

1. She has rendered at least 6 months continuous aggregate employment service for the
last 12 months prior to surgery;
2. In the event that an extended leave is necessary, the female employee may use her
earned leave credits; and
3. This special leave shall be non-cumulative and nonconvertible to cash.

B. The CSC, in the case of the public sector including LGUs and other State agencies, and the
DOLE, in the case of the private sector, shall issue further guidelines and appropriate
memorandum circulars within 60 days from the adoption of these Rules and Regulations to
operationalize said policy, and monitor its implementation and act on any violations thereof.

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B. NIGHT WORKERS
LABOR CODE: ARTICLES 154-161 (AS AMENDED BY R.A. 10151)
Chapter V
"Employment of Night Workers
Article 154. Coverage. –
This chapter' shall apply to all persons, who shall be employed or permitted or suffered to
work at night, except those employed in agriculture, stock raising, fishing, maritime
transport and inland navigation, during a period of not less than seven (7) consecutive
hours, including the interval from midnight to five o'clock in the morning, to be determined
by the Secretary of Labor and Employment, after consulting the workers'
representatives/labor organizations and employers.
'Night worker' means any employed person whose work requires performance of a
substantial number of hours of night work which exceeds a specified limit. This limit shall
be fixed by the Secretary of Labor after consulting the workers' representatives/labor
organizations and employers.
Article 155. Health Assessment. –
At their request, workers shall have the right to undergo a health assessment without charge
and to receive advice on how to reduce or avoid health problems associated with their
work: 
(a) Before taking up an assignment as a night worker;
(b) At regular intervals during such an assignment; and
(c) If they experience health problems during such, an assignment which are not
caused by factors other than the performance of night work.
With the exception of a finding of unfitness for night work, the findings of such
assessments shall not be transmitted to others without the workers' consent and shall not be
used to their detriment.
Article 156. Mandatory Facilities. –
Suitable first·aid facilities shall be made available for workers performing night work,
including arrangements where such workers, where necessary, can be taken immediately to
a place for appropriate treatment. The employers are likewise required to provide safe and
healthful working conditions and adequate or reasonable facilities such as sleeping or
resting quarters in the establishment and transportation from the work premises to the
nearest point of their residence subject to exceptions and guidelines to be provided by the
DOLE.
Article 157. Transfer. –
Night workers who are certified as unfit for night work, due to health reasons, shall be
transferred, whenever practicable, to a similar job for which they are fit to work.
If such transfer to a similar job is not practicable, these workers shall be granted the same
benefits as other workers who are unable to work, or to secure employment during such
period.
A night worker certified as temporarily unfit for night work shall be given the same
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protection against dismissal or notice of dismissal as other workers who are prevented from
working for reasons of health.
Article 158. Women Night Workers. - Measures shall be taken to ensure that an alternative
to night work is available to women workers who would otherwise be called upon to
perform such work:
a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be
divided between the time before and after childbirth;
b) For additional periods, in respect of winch a medical certificate IS produced stating
that said additional periods are necessary for the health of the mother or child:
(1) During pregnancy;
(2) During a specified time beyond the period, after childbirth is fixed pursuant to
subparagraph (a) above, the length of which shall be determined by the DOLE after
consulting the labor organizations and employers.
During the periods referred to in this article:
i. A woman worker shall not be dismissed or given notice of dismissal, except for
just or authorized causes provided for in this Code that are not connected with
pregnancy, childbirth and childcare responsibilities.
ii. A woman worker shall not lose the benefits regarding her status, seniority, and
access to promotion which may attach to her regular night work position.
Pregnant women and nursing mothers may be allowed to work .at night only if a competent
physician, other than the company physician, shall certify their fitness to render night work,
and specify, in the case of pregnant employees, the period of the pregnancy that they can
safely work.
The measures referred to in this article may include transfer to day work where this is
possible, the provision of social security benefits or an extension of maternity leave.
The provisions of this article shall not leave the effect of reducing the protection and
benefits connected with maternity leave under existing laws."
Article 159. Compensation.
The compensation for night workers in the form of working time, pay or similar benefits
shall recognize the exceptional nature of night work."
Article 160. Social Services. - Appropriate social services shall be provided for night
workers and, where necessary, for workers performing night work.
Article 161. Night Work Schedules. –
Before introducing work schedules requiring the services of night workers, the employer
shall consult the workers' representatives/labor organizations concerned on the details of
such schedules and the forms of organization of night work that are best adapted to the
establishment and its personnel, as well as on the occupational health measures and social
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services which are required. In establishments employing night workers, consultation shall
take place regularly.

DEPARTMENT ORDER NO. 119-12

FOR REFERENCE: CHECK THE REPEALED ARTICLE 130-131

Art. 130. Nightwork prohibition. No woman, regardless of age, shall be employed or
permitted or suffered to work, with or without compensation:
a. In any industrial undertaking or branch thereof between ten o’clock at night and six
o’clock in the morning of the following day; or 
b. In any commercial or non-industrial undertaking or branch thereof, other than
agricultural, between midnight and six o’clock in the morning of the following day;
or
 
c. In any agricultural undertaking at nighttime unless she is given a period of rest of
not less than nine (9) consecutive hours.
d.
Art. 131. Exceptions. The prohibitions prescribed by the preceding Article shall not apply in
any of the following cases:
a. In cases of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, 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;
 
b. In case of urgent work to be performed on machineries, equipment or installation, to
avoid serious loss which the employer would otherwise suffer;
 
c. Where the work is necessary to prevent serious loss of perishable goods;
 
d. Where the woman employee holds a responsible position of managerial or technical
nature, or where the woman employee has been engaged to provide health and
welfare services;
 
e. Where the nature of the work requires the manual skill and dexterity of women
workers and the same cannot be performed with equal efficiency by male workers;
 
f. Where the women employees are immediate members of the family operating the
establishment or undertaking; and
 
g. Under other analogous cases exempted by the Secretary of Labor and Employment
in appropriate regulations.

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C. MINORS
LABOR CODE: ARTICLES 137-138
ART. 137. [139] Minimum Employable Age.
a) No child below fifteen (15) years of age shall be employed, except when he
works directly under the sole
b) responsibility of his parents or guardian, and his employment does not in any
way interfere with his schooling.
c) Any person between fifteen (15) and eighteen (18) years of age may be employed
for such number of hours and such periods of the day as determined by the
Secretary of Labor and Employment in appropriate regulations.
d) The foregoing provisions shall in no case allow the employment of a person
below eighteen (18) years of age in an undertaking which is hazardous or
deleterious in nature as determined by the Secretary of Labor and Employment.
OMNIBUS RULES: BOOK III, RULE XII
SECTION 2. Employable age. —
Children below fifteen (15) years of age may be allowed to work under the direct
responsibility of their parents or guardians in any non-hazardous undertaking where the work
will not in any way interfere with their schooling. In such cases, the children shall not be
considered as employees of the employers or their parents or guardians.
ART. 138. [140] Prohibition Against Child Discrimination.
No employer shall discriminate against any person in respect to terms and conditions of
employment on account of his age.
OMNIBUS RULES: BOOK III, RULE XII
SECTION 3. Eligibility for employment. —
Any person of either sex, between 15 and 18 years of age, may be employed in any non-
hazardous work. No employer shall discriminate against such person in regard to terms and
conditions of employment on account of his age.
For purposes of this Rule, a non-hazardous work or undertaking shall mean any work or
activity in which the employee is not exposed to any risk which constitutes an imminent
danger to his safety and health. The Secretary of Labor and Employment shall from time to
time publish a list of hazardous work and activities in which persons 18 years of age and
below cannot be employed.
R.A. 7610, SPECIAL PROTECTION AGAINST CHILD ABUSE, EXPLOITATION AND
DISCRIMINATION ACT, SECTION 12, AS AMENDED BY R.A. 7658
Sec. 12. Employment of Children. — Children below fifteen (15) years of age shall not
be employed except:
1. When a child works directly under the sole responsibility of his parents or legal
guardian and where only members of the employer's family are employed:
Provided, however, That his employment neither endangers his life, safety, health
and morals, nor impairs his normal development; Provided, further, That the
parent or legal guardian shall provide the said minor child with the prescribed
primary and/or secondary education; or
2. Where a child's employment or participation in public entertainment or
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information through cinema, theater, radio or television is essential: Provided,
The employment contract is concluded by the child's parents or legal guardian,
with the express agreement of the child concerned, if possible, and the approval
of the Department of Labor and Employment: and Provided, That the following
requirements in all instances are strictly complied with:
a) The employer shall ensure the protection, health, safety, morals and normal
development of the child;       
b) The employer shall institute measures to prevent the child's exploitation or
discrimination taking into account the system and level of remuneration, and
the duration and arrangement of working time; and
c) The employer shall formulate and implement, subject to the approval and
supervision of competent authorities, a continuing program for training and
skills acquisition of the child.
In the above exceptional cases where any such child may be employed, the employer shall
first secure, before engaging such child, a work permit from the Department of Labor and
Employment which shall ensure observance of the above requirements.
The Department of Labor and Employment shall promulgate rules and regulations
necessary for the effective implementation of this Section.
R.A. 9231, AN ACT PROVIDING FOR THE ELIMINATION OF THE WORST FORMS OF CHILD
LABOR AND AFFORDING STRONGER PROTECTION FOR THE WORKING CHILD
Section 1. Section 2 of Republic Act No. 7610, as amended, otherwise known as the "Special
Protection of Children Against Child Abuse, Exploitation and Discrimination Act", is hereby
amended to read as follows:
Sec. 2. Declaration of State Policy and Principles. - It is hereby declared to be the policy
of the State to provide special protection to children from all forms of abuse, neglect,
cruelty, exploitation and discrimination, and other conditions prejudicial to their
development including child labor and its worst forms; provide sanctions for their
commission and carry out a program for prevention and deterrence of and crisis
intervention in situations of child abuse, exploitation and discrimination. The State shall
intervene on behalf of the child when the parent, guardian, teacher or person having care
or custody of the child fails or is unable to protect the child against abuse, exploitation
and discrimination or when such acts against the child are committed by the said parent,
guardian, teacher or person having care and custody of the same.
It shall be the policy of the State to protect and rehabilitate children gravely threatened or
endangered by circumstances which affect or will affect their survival and normal
development and over which they have no control.
The best interests of children shall be the paramount consideration in all actions
concerning them, whether undertaken by public or private social welfare institutions,
courts of law, administrative authorities, and legislative bodies, consistent with the
principle of First Call for Children as enunciated in the United Nations Convention on the
Rights of the Child. Every effort shall be exerted to promote the welfare of children and
enhance their opportunities for a useful and happy life."
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Section 2. Section 12 of the same Act, as amended, is hereby further amended to read as
follows:
Sec. 2. Employment of Children - Children below fifteen (15) years of age shall not be
employed except:
1) When a child works directly under the sole responsibility of his/her parents or legal
guardian and where only members of his/her family are employed: Provided,
however, That his/her employment neither endangers his/her life, safety, health, and
morals, nor impairs his/her normal development: Provided, further, That the parent or
legal guardian shall provide the said child with the prescribed primary and/or secondary
education; or
2) Where a child's employment or participation in public entertainment or information
through cinema, theater, radio, television or other forms of media is essential: Provided,
That the employment contract is concluded by the child's parents or legal guardian, with
the express agreement of the child concerned, if possible, and the approval of the
Department of Labor and Employment: Provided, further, That the following
requirements in all instances are strictly complied with:
(a) The employer shall ensure the protection, health, safety, morals and normal
development of the child;
(b) The employer shall institute measures to prevent the child's exploitation or
discrimination taking into account the system and level of remuneration, and the
duration and arrangement of working time; and
(c) The employer shall formulate and implement, subject to the approval and
supervision of competent authorities, a continuing program for training and skills
acquisition of the child.
In the above-exceptional cases where any such child may be employed, the employer
shall first secure, before engaging such child, a work permit from the Department of
Labor and Employment which shall ensure observance of the above requirements.
For purposes of this Article, the term "child" shall apply to all persons under eighteen
(18) years of age.
Section 3. The same Act, as amended, is hereby further amended by adding new sections to be
denominated as Sections 12-A, 12-B, 12-C, and 12-D to read as follows:
Sec. 2-A. Hours of Work of a Working Child. - Under the exceptions provided in Section
12 of this Act, as amended:
(1) A child below fifteen (15) years of age may be allowed to work for not more than
twenty (20) hours a week: Provided, That the work shall not be more than four (4)
hours at any given day;
(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to
work for more than eight (8) hours a day, and in no case beyond forty (40) hours a
week;
(3) No child below fifteen (15) years of age shall be allowed to work between eight
o'clock in the evening and six o'clock in the morning of the following day and no
child fifteen (15) years of age but below eighteen (18) shall be allowed to work
between ten o'clock in the evening and six o'clock in the morning of the following
day.
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Sec. 12-B. Ownership, Usage and Administration of the Working Child's Income. - The
wages, salaries, earnings and other income of the working child shall belong to him/her
in ownership and shall be set aside primarily for his/her support, education or skills
acquisition and secondarily to the collective needs of the family: Provided, That not more
than twenty percent (20%) of the child's income may be used for the collective needs of
the family.
The income of the working child and/or the property acquired through the work of the
child shall be administered by both parents. In the absence or incapacity of either of the
parents, the other parent shall administer the same. In case both parents are absent or
incapacitated, the order of preference on parental authority as provided for under the
Family Code shall apply.
Sec. 12-C. Trust Fund to Preserve Part of the Working Child's Income. - The parent or
legal guardian of a working child below eighteen (18) years of age shall set up a trust
fund for at least thirty percent (30%) of the earnings of the child whose wages and
salaries from work and other income amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render a semi-annual accounting of the
fund to the Department of Labor and Employment, in compliance with the provisions of
this Act. The child shall have full control over the trust fund upon reaching the age of
majority.
Sec. 12-D. Prohibition Against Worst Forms of Child Labor. - No child shall be engaged
in the worst forms of child labor. The phrase "worst forms of child labor" shall refer to
any of the following:
1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of
2003", or practices similar to slavery such as sale and trafficking of children, debt
bondage and serfdom and forced or compulsory labor, including recruitment of
children for use in armed conflict; or
2) The use, procuring, offering or exposing of a child for prostitution, for the
production of pornography or for pornographic performances; or
3) The use, procuring or offering of a child for illegal or illicit activities, including
the production and trafficking of dangerous drugs and volatile substances
prohibited under existing laws; or
4) Work which, by its nature or the circumstances in which it is carried out, is
hazardous or likely to be harmful to the health, safety or morals of children, such
that it:
a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a
human being; or
b) Exposes the child to physical, emotional or sexual abuse, or is found to be
highly stressful psychologically or may prejudice morals; or
c) Is performed underground, underwater or at dangerous heights; or
d) Involves the use of dangerous machinery, equipment and tools such as
power-driven or explosive power-actuated tools; or
e) Exposes the child to physical danger such as, but not limited to the
dangerous feats of balancing, physical strength or contortion, or which
requires the manual transport of heavy loads; or
f) Is performed in an unhealthy environment exposing the child to hazardous
working conditions, elements, substances, co-agents or processes involving
ionizing, radiation, fire, flammable substances, noxious components and the
like, or to extreme temperatures, noise levels, or vibrations; or
g) Is performed under particularly difficult conditions; or
51

h) Exposes the child to biological agents such as bacteria, fungi, viruses,
protozoans, nematodes and other parasites; or
i) Involves the manufacture or handling of explosives and other pyrotechnic
products.
Section 4. Section 13 of the same Act is hereby amended to read as follows:
Sec. 13. Access to Education and Training for Working Children –
a) No child shall be deprived of formal or non-formal education. In all cases of
employment allowed in this Act, the employer shall provide a working child with access
to at least primary and secondary education.
b) To ensure and guarantee the access of the working child to education and training, the
Department of Education (DEPED) shall: (1) formulate, promulgate, and implement
relevant and effective course designs and educational programs; (2) conduct the
necessary training for the implementation of the appropriate curriculum for the purpose;
(3) ensure the availability of the needed educational facilities and materials; and (4)
conduct continuing research and development program for the necessary and relevant
alternative education of the working child.
c) The DEPED shall promulgate a course design under its non-formal education program
aimed at promoting the intellectual, moral and vocational efficiency of working children
who have not undergone or finished elementary or secondary education. Such course
design shall integrate the learning process deemed most effective under given
circumstances.
Section 5. Section 14 of the same Act is hereby amended to read as follows:
Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. - No
child shall be employed as a model in any advertisement directly or indirectly promoting
alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any
form of violence or pornography.
Section 6. Section 16 of the same Act, is hereby amended to read as follows:
Sec. 16. Penal Provisions -
a) Any employer who violates Sections 12, 12-A, and Section 14 of this act, as amended,
shall be penalized by imprisonment of six (6) months and one (1) day to six (6) years or a
fine of not less than Fifty thousand pesos (P50,000.00) but not more than Three hundred
thousand pesos (P300,000.00) or both at the discretion of the court.
b) Any person who violates the provision of Section 12-D of this act or the employer of
the subcontractor who employs, or the one who facilitates the employment of a child in
hazardous work, shall suffer the penalty of a fine of not less than One hundred thousand
pesos (P100,000.00) but not more than One million pesos (P1,000,000.00), or
imprisonment of not less than twelve (12) years and one (1) day to twenty (20) years, or
both such fine and imprisonment at the discretion of the court.
c) Any person who violates Sections 12-D(1) and 12-D(2) shall be prosecuted and
penalized in accordance with the penalty provided for by R. A. 9208 otherwise known as
the "Anti-trafficking in Persons Act of 2003": Provided, That Such penalty shall be
imposed in its maximum period.
d) Any person who violates Section 12-D (3) shall be prosecuted and penalized in
accordance with R.A. 9165, otherwise known as the "Comprehensive Dangerous Drugs
Act of 2002"; Provided, That such penalty shall be imposed in its maximum period.
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e) If a corporation commits any of the violations aforecited, the board of
directors/trustees and officers, which include the president, treasurer and secretary of the
said corporation who participated in or knowingly allowed the violation, shall be
penalized accordingly as provided for under this Section.
f) Parents, biological or by legal fiction, and legal guardians found to be violating
Sections 12, 12-A, 12-B and 12-C of this Act shall pay a fine of not less than Ten
thousand pesos (P10,000.00) but not more than One hundred thousand pesos
(P100,000.00), or be required to render community service for not less than thirty (30)
days but not more than one (1) year, or both such fine and community service at the
discretion of the court: Provided, That the maximum length of community service shall
be imposed on parents or legal guardians who have violated the provisions of this Act
three (3) times; Provided, further, That in addition to the community service, the penalty
of imprisonment of thirty (30) days but not more than one (1) year or both at the
discretion of the court, shall be imposed on the parents or legal guardians who have
violated the provisions of this Act more than three (3) times.
g) The Secretary, of Labor and Employment or his/her duly authorized representative
may, after due notice and hearing, order the closure of any business firm or establishment
found to have violated any of the provisions of this Act more than three (3) times. He/she
shall likewise order the immediate closure of such firm or establishment if:
(1) The violation of any provision of this Act has resulted in the death,
insanity or serious physical injury of a child employed in such
establishment; or
(2) Such firm or establishment is engaged or employed in prostitution or in
obscene or lewd shows.
h) In case of such closure, the employer shall be required to pay the employee(s) the
separation pay and other monetary benefits provided for by law.
Section 7. The same Act is hereby further amended by adding a new section to be
denominated as Section 16-A, to read as follows:
Sec. 16-A. Trust Fund from Fines and Penalties - The fine imposed by the court shall be
treated as a Trust Fund, administered by the Department of Labor and Employment and
disbursed exclusively for the needs, including the costs of rehabilitation and reintegration
into the mainstream of society of the working children who are victims of the violations
of this Act, and for the programs and projects that will prevent acts of child labor.
Section 8. Section 27 of the same Act is hereby amended to read as follows:
Sec. 27. Who May File a Complaint - Complaints on cases of unlawful acts committed
against children as enumerated herein may be filed by the following:
a) Offended party;
b) Parents or guardians;
c) Ascendant or collateral relative within the third degree of consanguinity;
d) Officer, social worker or representative of a licensed child-caring institution;
e) Officer or social worker of the Department of Social Welfare and
Development;
f) Barangay chairman of the place where the violation occurred, where the child
is residing or employed; or
g) At least three (3) concerned, responsible citizens where the violation occurred.
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Section 9. The same Act is hereby further amended by adding new sections to Section 16 to be
denominated as Sections 16-A, 16-B and 16-C to read as follows:
Sec. 16-A. Jurisdiction - The family courts shall have original jurisdiction over all cases
involving offenses punishable under this Act: Provided, That in cities or provinces where
there are no family courts yet, the regional trial courts and the municipal trial courts shall
have concurrent jurisdiction depending on the penalties prescribed for the offense
charged.

The preliminary investigation of cases filed under this Act shall be terminated within a
period of thirty (30) days from the date of filing.

If the preliminary investigation establishes a prima facie case, then the corresponding

information shall be filed in court within forty eight (48) hours from the termination of
the investigation.

Trial of cases under this Act shall be terminated by the court not later than ninety (90)
days from the date of filing of information. Decision on said cases shall be rendered
within a period of fifteen (15) days from the date of submission of the case.

Sec. 15. Exemptions from Filing Fees. - When the victim of child labor institutes a
separate civil action for the recovery of civil damages, he/she shall be exempt from
payment of filing fees.

Sec. 16-C. Access to Immediate Legal, Medical and Psycho-Social Services - The

working child shall have the right to free legal, medical and psycho-social services to be
provided by the State.

Section 10. Implementing Rules and Regulations - The Secretary of Labor and Employment,
in coordination with the Committees on Labor and Employment of both Houses of Congress,
shall issue the necessary Implementing Rules and Regulations (IRR) to effectively implement
the provisions of this Act, in consultation with concerned public and private sectors, within
sixty (60) days from the effectivity of this Act.

Such rules and regulations shall take effect upon their publication in two (2) national
newspapers of general circulation.

Section 11. Separability Clause. - If any provision of this Act is declared invalid or

unconstitutional, the validity of the remaining provisions hereof shall remain in full force and
effect.

Section 12. Repealing Clause. - All laws, decrees, or rules inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

Section 13. Effectivity. - This Act shall take effect fifteen (15) days from the date of its
complete publication in the Official Gazette or in at least two (2) national newspapers of
general circulation.

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D. HOUSEHELPERS
R.A. 10361, BATAS KASAMBAHAY
AN ACT INSTITUTING POLICIES FOR THE PROTECTION AND WELFARE OF
DOMESTIC WORKERS
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
ARTICLE I
GENERAL PROVISIONS
Section 1. Short Title. – This Act shall be known as the "Domestic Workers Act" or "Batas
Kasambahay".
Section 2. Declaration of Policies. – It is hereby declared that:
(a) The State strongly affirms labor as a primary social force and is committed to respect,
promote, protect and realize the fundamental principles and rights at work including, but
not limited to, abolition of child labor, elimination of all forms of forced labor,
discrimination in employment and occupation, and trafficking in persons, especially
women and children;
(b) The State adheres to internationally accepted working conditions for workers in
general, and establishes labor standards for domestic workers in particular, towards
decent employment and income, enhanced coverage of social protection, respect for
human rights and strengthened social dialogue;
(c) The State recognizes the need to protect the rights of domestic workers against abuse,
harassment, violence, economic exploitation and performance of work that is hazardous
to their physical and mental health; and
(d) The State, in protecting domestic workers and recognizing their special needs to
ensure safe and healthful working conditions, promotes gender-sensitive measures in the
formulation and implementation of policies and programs affecting the local domestic
work.
Section 3. Coverage. – This Act applies to all domestic workers employed and working
within the country.
Section 4. Definition of Terms. – As used in this Act, the term:
(a) Debt bondage refers to the rendering of service by the domestic worker as security or
payment for a debt where the length and nature of service is not clearly defined or when
the value of the service is not reasonably applied in the payment of the debt.
(b) Deployment expenses refers to expenses that are directly used for the transfer of the
domestic worker from place of origin to the place of work covering the cost of
transportation. Advances or loans by the domestic worker are not included in the
definition of deployment expenses.
(c) Domestic work refers to work performed in or for a household or households.
(d) Domestic worker or "Kasambahay" refers to any person engaged in domestic work
within an employment relationship such as, but not limited to, the following: general
househelp, nursemaid or "yaya", cook, gardener, or laundry person, but shall exclude any
person who performs domestic work only occasionally or sporadically and not on an
occupational basis.
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The term shall not include children who are under foster family arrangement, and are
provided access to education and given an allowance incidental to education, i.e. "baon",
transportation, school projects and school activities.
(e) Employer refers to any person who engages and controls the services of a domestic
worker and is party to the employment contract.
(f) Household refers to the immediate members of the family or the occupants of the
house that are directly provided services by the domestic worker.
(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership,
corporation or entity licensed to engage in the recruitment and placement of domestic
workers for local employment.
(h) Working children, as used under this Act, refers to domestic workers who are fifteen
(15) years old and above but below eighteen (18) years old.
ARTICLE II
RIGHTS AND PRIVILEGES
Section 5. Standard of Treatment. – The employer or any member of the household shall not
subject a domestic worker or "kasambahay" to any kind of abuse nor inflict any form of
physical violence or harassment or any act tending to degrade the dignity of a domestic
worker.
Section 6. Board, Lodging and Medical Attendance. – The employer shall provide for the
basic necessities of the domestic worker to include at least three (3) adequate meals a day and
humane sleeping arrangements that ensure safety.
The employer shall provide appropriate rest and assistance to the domestic worker in case of
illnesses and injuries sustained during service without loss of benefits.
At no instance shall the employer withdraw or hold in abeyance the provision of these basic
necessities as punishment or disciplinary action to the domestic worker.
Section 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be
guaranteed at all times and shall extend to all forms of communication and personal effects.
This guarantee equally recognizes that the domestic worker is obliged to render satisfactory
service at all times.
Section 8. Access to Outside Communication. – The employer shall grant the domestic worker
access to outside communication during free time: Provided, That in case of emergency,
access to communication shall be granted even during work time. Should the domestic worker
make use of the employer’s telephone or other communication facilities, the costs shall be
borne by the domestic worker, unless such charges are waived by the employer.
Section 9. Right to Education and Training. – The employer shall afford the domestic worker
the opportunity to finish basic education and may allow access to alternative learning systems
and, as far as practicable, higher education or technical and vocational training. The employer
shall adjust the work schedule of the domestic worker to allow such access to education or
training without hampering the services required by the employer.
Section 10. Prohibition Against Privileged Information. – All communication and information
pertaining to the employer or members of the household shall be treated as privileged and
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confidential, and shall not be publicly disclosed by the domestic worker during and after
employment. Such privileged information shall be inadmissible in evidence except when the
suit involves the employer or any member of the household in a crime against persons,
property, personal liberty and security, and chastity.
ARTICLE III
PRE-EMPLOYMENT
Section 11. Employment Contract. – An employment contract shall be executed by and
between the domestic worker and the employer before the commencement of the service in a
language or dialect understood by both the domestic worker and the employer. The domestic
worker shall be provided a copy of the duly signed employment contract which must include
the following:
(a) Duties and responsibilities of the domestic worker;
(b) Period of employment;
(c) Compensation;
(d) Authorized deductions;
(e) Hours of work and proportionate additional payment;
(f) Rest days and allowable leaves;
(g) Board, lodging and medical attention;
(h) Agreements on deployment expenses, if any;
(i) Loan agreement;
(j) Termination of employment; and
(k) Any other lawful condition agreed upon by both parties.
The Department of Labor and Employment (DOLE) shall develop a model employment
contract for domestic workers which shall, at all times, be made available free of charge to
domestic workers, employers, representative organizations and the general public. The DOLE
shall widely disseminate information to domestic workers and employers on the use of such
model employment contract.
In cases where the employment of the domestic worker is facilitated through a private
employment agency, the PEA shall keep a copy of all employment contracts of domestic
workers and shall be made available for verification and inspection by the DOLE.
Section 12. Pre-Employment Requirement. – Prior to the execution of the employment
contract, the employer may require the following from the domestic worker:
(a) Medical certificate or a health certificate issued by a local government health
officer;
(b) Barangay and police clearance;
(c) National Bureau of Investigation (NBI) clearance; and
(d) Duly authenticated birth certificate or if not available, any other document
showing the age of the domestic worker such as voter’s identification card,
baptismal record or passport.
However, Section 12(a), (b), (c) and (d) shall be standard requirements when the employment
of the domestic worker is facilitated through the PEA.
The cost of the foregoing shall be borne by the prospective employer or agency, as the case
may be.
Section 13. Recruitment and Finder’s Fees. – Regardless of whether the domestic worker was
hired through a private employment agency or a third party, no share in the recruitment or
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finder’s fees shall be charged against the domestic worker by the said private employment
agency or third party.
Section 14. Deposits for Loss or Damage. – It shall be unlawful for the employer or any other
person to require a domestic worker to make deposits from which deductions shall be made
for the reimbursement of loss or damage to tools, materials, furniture and equipment in the
household.
Section 15. Prohibition on Debt Bondage. – It shall be unlawful for the employer or any
person acting on behalf of the employer to place the domestic worker under debt bondage.
Section 16. Employment Age of Domestic Workers. – It shall be unlawful to employ any
person below fifteen (15) years of age as a domestic worker. Employment of working
children, as defined under this Act, shall be subject to the provisionsof Section 10(A),
paragraph 2 of Section 12-A, paragraph 4 of Section 12-D, and Section 13 of Republic Act
No. 7610, as amended, otherwise known as the "Special Protection of Children Against Child
Abuse, Exploitation and Discrimination Act".
Working children shall be entitled to minimum wage, and all benefits provided under this Act.
Any employer who has been sentenced by a court of law of any offense against a working
child under this Act shall be meted out with a penalty one degree higher and shall be
prohibited from hiring a working child.
Section 17. Employer’s Reportorial Duties. – The employers shall register all domestic
workers under their employment in the Registry of Domestic Workers in the barangay where
the employer’s residence is located. The Department of the Interior and Local Government
(DILG) shall, in coordination with the DOLE, formulate a registration system for this purpose.
Section 18. Skills Training, Assessment and Certification. – To ensure productivity and assure
quality services, the DOLE, through the Technical Education and Skills Development
Authority (TESDA), shall facilitate access of domestic workers to efficient training,
assessment and certification based on a duly promulgated training regulation.
ARTICLE IV
EMPLOYMENT – TERMS AND CONDITIONS
Section 19. Health and Safety. – The employer shall safeguard the health and safety of the
domestic worker in accordance with laws, rules and regulations, with due consideration of the
peculiar nature of domestic work.
Section 20. Daily Rest Period. – The domestic worker shall be entitled to an aggregate daily
rest period of eight (8) hours per day.
Section 21. Weekly Rest Period. – The domestic worker shall be entitled to at least twenty-
four (24) consecutive hours of rest in a week. The employer and the domestic worker shall
agree in writing on the schedule of the weekly rest day of the domestic worker: Provided, That
the employer shall respect the preference of the domestic worker as to the weekly rest day
when such preference is based on religious grounds. Nothing in this provision shall deprive
the domestic worker and the employer from agreeing to the following:
(a) Offsetting a day of absence with a particular rest day;
(b) Waiving a particular rest day in return for an equivalent daily rate of pay;
(c) Accumulating rest days not exceeding five (5) days; or
(d) Other similar arrangements.
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Section 22. Assignment to Nonhousehold Work. – No domestic worker shall be assigned to
work in a commercial, industrial or agricultural enterprise at a wage rate lower than that
provided for agricultural or nonagricultural workers. In such cases, the domestic worker shall
be paid the applicable minimum wage.
Section 23. Extent of Duty. – The domestic worker and the employer may mutually agree for
the former to temporarily perform a task that is outside the latter’s household for the benefit of
another household. However, any liability that will be incurred by the domestic worker on
account of such arrangement shall be borne by the original employer. In addition, such work
performed outside the household shall entitle the domestic worker to an additional payment of
not less than the existing minimum wage rate of a domestic worker. It shall be unlawful for the
original employer to charge any amount from the said household where the service of the
domestic worker was temporarily performed.
Section 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than
the following:
(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the
National Capital Region (NCR);
(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities
and first class municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a month for those employed
mother municipalities.
After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional
Tripartite and Productivity Wage Boards (RTPWBs) shall review, and if proper, determine
and adjust the minimum wage rates of domestic workers.
Section 25. Payment of Wages. – Payment of wages shall be made on time directly to the
domestic worker to whom they are due in cash at least once a month. The employer, unless
allowed by the domestic worker through a written consent, shall make no deductions from the
wages other than that which is mandated by law. No employer shall pay the wages of a
domestic worker by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or
any object other than the cash wage as provided for under this Act.
The domestic worker is entitled to a thirteenth month pay as provided for by law.
Section 26. Pay Slip. – The employer shall at all times provide the domestic worker with a
copy of the pay slip containing the amount paid in cash every pay day, and indicating all
deductions made, if any. The copies of the pay slip shall be kept by the employer for a period
of three (3) years.
Section 27. Prohibition on Interference in the Disposal of Wages. – It shall be unlawful for
the employer to interfere with the freedom of any domestic worker to dispose of the latter’s
wages. The employer shall not force, compel or oblige the domestic worker to purchase
merchandise, commodities or other properties from the employer or from any other person, or
otherwise make use of any store or services of such employer or any other person.
Section 28. Prohibition Against Withholding of Wages. – It shall be unlawful for an employer,
directly or indirectly, to withhold the wages of the domestic worker. If the domestic worker
leaves without any justifiable reason, any unpaid salary for a period not exceeding fifteen (15)
days shall be forfeited. Likewise, the employer shall not induce the domestic worker to give
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up any part of the wages by force, stealth, intimidation, threat or by any other means
whatsoever.
Section 29. Leave Benefits. – A domestic worker who has rendered at least one (1) year of
service shall be entitled to an annual service incentive leave of five (5) days with
pay: Provided, That any unused portion of said annual leave shall not be cumulative or carried
over to the succeeding years. Unused leaves shall not be convertible to cash.
Section 30. Social and Other Benefits. – A domestic worker who has rendered at least one (1)
month of service shall be covered by the Social Security System (SSS), the Philippine Health
Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG,
and shall be entitled to all the benefits in accordance with the pertinent provisions provided by
law.
Premium payments or contributions shall be shouldered by the employer. However, if the
domestic worker is receiving a wage of Five thousand pesos (P5,000.00) and above per month,
the domestic worker shall pay the proportionate share in the premium payments or
contributions, as provided by law.
The domestic worker shall be entitled to all other benefits under existing laws.
Section 31. Rescue and Rehabilitation of Abused Domestic Workers. – Any abused or
exploited domestic worker shall be immediately rescued by a municipal or city social welfare
officer or a social welfare officer from the Department of Social Welfare and Development
(DSWD) in coordination with the concerned barangay officials. The DSWD and the DILG
shall develop a standard operating procedure for the rescue and rehabilitation of abused
domestic workers, and in coordination with the DOLE, for possible subsequent job placement.
ARTICLE V
POST EMPLOYMENT
Section 32. Termination of Service. – Neither the domestic worker nor the employer may
terminate the contract before the expiration of the term except for grounds provided for in
Sections 33 and 34 of this Act. If the domestic worker is unjustly dismissed, the domestic
worker shall be paid the compensation already earned plus the equivalent of fifteen (15) days
work by way of indemnity. If the domestic worker leaves without justifiable reason, any
unpaid salary due not exceeding the equivalent fifteen (15) days work shall be forfeited. In
addition, the employer may recover from the domestic worker costs incurred related to the
deployment expenses, if any: Provided, That the service has been terminated within six (6)
months from the domestic worker’s employment.
If the duration of the domestic service is not determined either in stipulation or by the nature
of the service, the employer or the domestic worker may give notice to end the working
relationship five (5) days before the intended termination of the service.
The domestic worker and the employer may mutually agree upon written notice to pre-
terminate the contract of employment to end the employment relationship.
Section 33. Termination Initiated by the Domestic Worker. – The domestic worker may
terminate the employment relationship at any time before the expiration of the contract for any
of the following causes:
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(a) Verbal or emotional abuse of the domestic worker by the employer or any
member of the household;
(b) Inhuman treatment including physical abuse of the domestic worker by the
employer or any member of the household;
(c) Commission of a crime or offense against the domestic worker by the employer
or any member of the household;
(d) Violation by the employer of the terms and conditions of the employment
contract and other standards set forth under this law;
(e) Any disease prejudicial to the health of the domestic worker, the employer, or
member/s of the household; and
(f) Other causes analogous to the foregoing.
Section 34. Termination Initiated by the Employer. – An employer may terminate the services
of the domestic worker at any time before the expiration of the contract, for any of the
following causes:
(a) Misconduct or willful disobedience by the domestic worker of the lawful order
of the employer in connection with the former’s work;
(b) Gross or habitual neglect or inefficiency by the domestic worker in the
performance of duties;
(c) Fraud or willful breach of the trust reposed by the employer on the domestic
worker;
(d) Commission of a crime or offense by the domestic worker against the person of
the employer or any immediate member of the employer’s family;
(e) Violation by the domestic worker of the terms and conditions of the employment
contract and other standards set forth under this law;
(f) Any disease prejudicial to the health of the domestic worker, the employer, or
member/s of the household; and
(g) Other causes analogous to the foregoing.
Section 35. Employment Certification. – Upon the severance of the employment relationship,
the employer shall issue the domestic worker within five (5) days from request a certificate of
employment indicating the nature, duration of the service and work performance.
ARTICLE VI
PRIVATE EMPLOYMENT AGENCIES
Section 36. Regulation of Private Employment Agencies (PEAs). – The DOLE shall, through a
system of licensing and regulation, ensure the protection of domestic workers hired through
the PEAs.
The PEA shall be jointly and severally liable with the employer for all the wages, wage-related
benefits, and other benefits due a domestic worker.
The provision of Presidential Decree No. 442, as amended, otherwise known as the "Labor
Code of the Philippines", on qualifications of the PEAs with regard to nationality, networth,
owners and officers, office space and other requirements, as well as nontransferability of
license and commission of prohibited practices, shall apply.
In addition, PEAs shall have the following responsibilities:
(a) Ensure that domestic workers are not charged or levied any recruitment or
placement fees;
(b) Ensure that the employment agreement between the domestic worker and the
employer stipulates the terms and conditions of employment and all the benefits
prescribed by this Act;
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(c) Provide a pre-employment orientation briefing to the domestic worker and the
employer about their rights and responsibilities in accordance with this Act;
(d) Keep copies of employment contracts and agreements pertaining to recruited
domestic workers which shall be made available during inspections or whenever
required by the DOLE or local government officials;
(e) Assist domestic workers with respect to complaints or grievances against their
employers; and
(f) Cooperate with government agencies in rescue operations involving abused or
exploited domestic workers.
ARTICLE VII
SETTLEMENT OF DISPUTES
Section 37. Mechanism for Settlement of Disputes. – All labor-related disputes shall be
elevated to the DOLE Regional Office having jurisdiction over the workplace without
prejudice to the filing of a civil or criminal action in appropriate cases. The DOLE Regional
Office shall exhaust all conciliation and mediation efforts before a decision shall be rendered.
Ordinary crimes or offenses committed under the Revised Penal Code and other special penal
laws by either party shall be filed with the regular courts.
ARTICLE VIII
SPECIAL PROVISIONS
Section 38. Information Program. – The DOLE shall, in coordination with the DILG, the
SSS, the PhilHealth and Pag-IBIG develop and implement a continuous information
dissemination program on the provisions of this Act, both at the national and local level,
immediately after the enactment of this law.
Section 39. "Araw Ng Mga Kasambahay". – The date upon which the President shall approve
this "Domestic Workers Act" shall be designated as the "Araw ng mga Kasambahay".
ARTICLE IX
PENAL AND MISCELLANEOUS PROVISIONS
Section 40. Penalty. – Any violation of the provisions of this Act declared unlawful shall be
punishable with a fine of not less than Ten thousand pesos (P10,000.00) but not more than
Forty thousand pesos (P40,000.00) without prejudice to the filing of appropriate civil or
criminal action by the aggrieved party.
Section 41. Transitory Provision; Non-Diminution of Benefits. – All existing arrangements
between a domestic worker and the employer shall be adjusted to conform to the minimum
standards set by this Act within a period of sixty (60) days after the effectivity of this
Act: Provided, That adjustments pertaining to wages shall take effect immediately after the
determination and issuance of the appropriate wage order by the RTWPBs: Provided,
further, That nothing in this Act shall be construed to cause the diminution or substitution of
any benefits and privileges currently enjoyed by the domestic worker hired directly or through
an agency.
Section 42. Implementing Rules and Regulations. – Within ninety (90) days from the
effectivity of this Act, the Secretary of Labor and Employment, the Secretary of Social
Welfare and Development, the Secretary of the Interior and Local Government, and the
Director General of the Philippine National Police, in coordination with other concerned
government agencies and accredited nongovernment organizations (NGOs) assisting domestic
workers, shall promulgate the necessary rules and regulations for the effective implementation
of this Act.
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ARTICLE X
FINAL PROVISIONS

Section 43. Separability Clause. – If any provision or part of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.

Section 44. Repealing Clause. – All articles or provisions of Chapter III (Employment of

Househelpers) of Presidential Decree No. 442, as amended and renumbered by Republic Act
No. 10151 are hereby expressly repealed. All laws, decrees, executive orders, issuances, rules
and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

Section 45. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.

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E. HOMEWORKERS

LABOR CODE: ARTICLES 151-153

ART. 151. [153] Regulation of Industrial Homeworkers.

The employment of industrial homeworkers and field personnel shall be regulated by the
government through the appropriate regulations issued by the Secretary of Labor and
Employment to ensure the general welfare and protection of homeworkers and field
personnel and the industries employing them.

ART. 152. [154] Regulations of Secretary of Labor.

The regulations or orders to be issued pursuant to this Chapter shall be designed to assure
the minimum terms and conditions of employment applicable to the industrial
homeworkers or field personnel involved.

ART. 153. [155] Distribution of Homework.

For purposes of this Chapter, the "employer" of homeworkers includes any person, natural
or artificial who, for his account or benefit, or on behalf of any person residing outside the
country, directly or indirectly, or through an employee, agent contractor, sub-contractor or
any other person:
1) Delivers, or causes to be delivered, any goods, articles or materials to be processed or
fabricated in or about a home and thereafter to be returned or to be disposed of or
distributed in accordance with his directions; or
2) Sells any goods, articles or materials to be processed or fabricated in or about a home
and then rebuys them after such processing or fabrication, either by himself or through
some other person.

DOLE DEPARTMENT ORDER NO. 5, SERIES OF 1992

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F. HANDICAPPED/DISABLED
R.A. 7277, MAGNA CARTA FOR THE DISABLED, SECTIONS 4 (A-D, I), 5-11, 32-33
SECTION 4. Definition of Terms       Sec. 7. Apprenticeship. —
For purposes of this Act, these terms are defined as follows:
(a) Disabled Persons are those suffering from restriction of different abilities, as a result of
a mental, physical or sensory impairment, to perform an activity in the manner or within
the range considered normal for a human being;
(b) Impairment is any loss, diminution or aberration of psychological, physiological, or
anatomical structure of function;
(c) Disability shall mean
1) a physical or mental impairment that substantially limits one or more
psychological, physiological or anatomical function of an individual or activities
of such individual;
2) a record of such an impairment; or
3) being regarded as having such an impairment;
4)
(d). Handicap refers to a disadvantage for a given individual resulting from an impairment
or a disability, that limits or prevents the functions or activity, that is considered normal
given the age and sex of the individual;
xxx
(i) Sheltered Employment refers to the provision of productive work for disabled persons
through workshop providing special facilities, income producing projects or homework
schemes with a view to given them the opportunity to earn a living thus enabling them to
acquire a working capacity required in open industry.
CHAPTER I EMPLOYMENT
Sec. 5. Equal Opportunity for Employment. —
No disable person shall be denied access to opportunities for suitable employment. A
qualified disabled employee shall be subject to the same terms and conditions of
employment and the same compensation, privileges, benefits, fringe benefits, incentives or
allowances as a qualified able bodied person.
Five percent (5%) of all casual emergency and contractual positions in the Departments of
Social Welfare and Development; Health; Education, Culture and Sports; and other
government agencies, offices or corporations engaged in social development shall be
reserved for disabled persons.
Sec. 6. Sheltered Employment —
If suitable employment for disabled persons cannot be found through open employment as
provided in the immediately preceding Section, the State shall endeavor to provide it by
means of sheltered employment. In the placement of disabled persons in sheltered
employment, it shall accord due regard to the individual qualities, vocational goals and
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inclinations to ensure a good working atmosphere and efficient production.
Subject to the provisions of the Labor Code as amended, disabled persons shall be eligible
as apprentices or learners: Provided, That their handicap is not as much as to effectively
impede the performance of job operations in the particular occupation for which they are
hired; Provided, further, That after the lapse of the period of apprenticeship, if found
satisfactory in the job performance, they shall be eligible for employment.
Sec. 8. Incentives for Employers. —
(a) To encourage the active participation of the private sector in promoting the welfare of
disabled persons and to ensure gainful employment for qualified disabled persons, adequate
incentives shall be provided to private entities which employ disabled persons.
(b) Private entities that employ disabled persons who meet the required skills or
qualifications, either as regular employee, apprentice or learner, shall be entitled to an
additional deduction, from their gross income, equivalent to twenty-five percent (25%) of
the total amount paid as salaries and wages to disabled persons: Provided, however, That
such entities present proof as certified by the Department of Labor and Employment that
disabled persons are under their employ: Provided, further, That the disabled employee is
accredited with the Department of Labor and Employment and the Department of Health as
to his disability, skills and qualifications.
(c) Private entities that improve or modify their physical facilities in order to provide
reasonable accommodation for disabled persons shall also be entitled to an additional
deduction from their net taxable income, equivalent to fifty percent (50%) of the direct
costs of the improvements or modifications. This Section, however, does not apply to
improvements or modifications of facilities required under Batas Pambansa Bilang 344.
Sec. 9. Vocational Rehabilitation. —
Consistent with the principle of equal opportunity for disabled workers and workers in
general, the State shall take appropriate vocational rehabilitation measures that shall serve
to develop the skills and potentials of disabled persons and enable them to compete
favorably for available productive and remunerative employment opportunities in the labor
market.
The State shall also take measures to ensure the provision of vocational rehabilitation and
livelihood services for disabled persons in the rural areas. In addition, it shall promote
cooperation and coordination between the government and nongovernmental organizations
and other private entities engaged in vocational rehabilitation activities.
The Department of Social Welfare and Development shall design and implement training
programs that will provide disabled persons with vocational skills to enable them to engage
in livelihood activities or obtain gainful employment. The Department of Labor and
Employment shall likewise design and conduct training programs geared towards providing
disabled persons with skills for livelihood.
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Sec. 10. Vocational Guidance and Counseling. —
The Department of Social and Welfare and Development, shall implement measures
providing and evaluating vocational guidance and counseling to enable disabled persons to
secure, retain and advance in employment. It shall ensure the availability and training of
counselors and other suitably qualified staff responsible for the vocational guidance and
counseling of disabled persons.
Sec. 11.Implementing Rules and Regulations. —
The Department of Labor and Employment shall in coordination with the Department of
Social Welfare and Development (DSWD) and National Council for the Welfare of the
Disabled Persons (NCWDP) shall promulgate the rules and regulations necessary to
implement the provisions under this Chapter.
LABOR CODE: ARTICLES 78-81
ART. 78. Definition.
Handicapped workers are those whose earning capacity is impaired by age or physical or
mental deficiency or injury.
OMNIBUS RULES: BOOK II, RULE VIII
SECTION 1. Definition of terms. —
(a) "Handicapped workers" are those whose earning capacity is impaired by age or physical or
mental deficiency or injury.
(b) "Employment agreement" is the contract of employment entered into between the
employer and the handicapped worker.
ART. 79. When Employable.
Handicapped workers may be employed when their employment is necessary to prevent
curtailment of employment opportunities and when it does not create unfair competition in
labor costs or impair or lower working standards.
OMNIBUS RULES: BOOK II, RULE VIII
SECTION 2. When handicapped workers may be employed. —
Handicapped workers may be employed when their employment is necessary to prevent
curtailment of employment opportunities and when it does not create unfair competition in
labor costs or impair working standards.
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ART. 80. Employment Agreement.
Any employer who employs handicapped workers shall enter into an employment
agreement with them, which agreement shall include:
1. The names and addresses of the handicapped workers to be employed;
2. The rate to be paid the handicapped workers which shall not be less than seventy
five (75%) percent of the applicable legal minimum wage;
3. The duration of employment period; and
4. The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his
duly authorized representative.
OMNIBUS RULES: BOOK II, RULE VIII
SECTION 3. Contents of employment agreement. —
An employer who hires a handicapped worker shall enter into an employment agreement with
the latter which shall include:
a) The names and addresses of the employer and the handicapped worker;
b) The rate of pay of the handicapped worker which shall not be less than seventy-five
(75%) percent of the legal minimum wage;
c) The nature of work to be performed by the handicapped worker; and
d) The duration of the employment.
SECTION 4. Copy of agreement to be furnished to Division. —
A copy each of the employment agreement shall be furnished by the employer to the
handicapped worker and the Apprenticeship Division involved. The Secretary of Labor and
Employment or his duly authorized representative may inspect from time to time the working
conditions of handicapped workers to verify compliance by the parties with their employment
agreement.
SECTION 5. Eligibility for apprenticeship. —
Handicapped workers shall not be precluded from employment as apprentices or learners if
their handicap is not such as to effectively impede the performance of job operations in the
particular trade or occupation which is the subject of the apprenticeship or learnership
program.
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SECTION 32. Discrimination on Employment      

No entity, whether public or private, shall discriminate against a qualified disabled person by
reason of disability in regard to job application procedures, the hiring, promotion, or discharge
of employees, employee compensation, job training, and other terms, conditions, and
privileges of employment. The following constitute acts of discrimination:
a) Limiting, segregating or classifying a disabled job applicant in such a manner that
adversely affects his work opportunities;
b) Using qualification standards, employment tests or other selection criteria that
screen out or tend to screen out a disabled person unless such standards, tests or
other selection criteria are shown to be jobrelated for the position on question and
are consistent with business necessity;
c) Utilizing standards, criteria, or methods of administration that:
1. have the effect of discrimination on the basis of disability; or
2. perpetuate the discrimination of others who are subject to common
administrative control;
d) Providing less compensation, such as salary, wage or other forms of remuneration
and fringe benefits, to a qualified disabled employee, by reason of his disability,
than the amount to which a non-disabled person performing the same work is
entitled;
e) Favoring a non-disabled employee over a qualified disabled employee with respect
to promotion, training opportunities, study and scholarship grants, solely on account
of the latter’s disability;
f) Re-assigning or transferring a disabled employee to a job or position he cannot
perform by reason of his disability;
g) Dismissing or terminating the services of a disabled employee by reason of his
disability unless the employer can prove that he impairs the satisfactory performance
of the work involve to the prejudice of the business entities; Provided, however,
That the employer first sought provide reasonable accommodations for disabled
persons;
h) Failing to select or administer in the effective manner employment tests which
accurately reflect the skills, aptitude or other factor of the disabled applicant or
employee that such test purports to measure, rather than the impaired sensory,
manual or speaking skills of such applicant or employee, if any; and
i) Excluding disabled persons from membership in labor unions or similar
organization.

SECTION 33. Employment Entrance Examination      

Upon an offer of employment, a disabled applicant may be subjected to medical examination,
on the following occasions:
a) all entering employees are subjected to such an examination regardless of disability;
b) information obtained during the medical condition or history of the applicant is
collected and maintained on separate forms and in separate medical files and is
treated as a confidential medical record, Provided, however, That:
1. supervisors and managers may be informed regarding necessary restrictions on
the work or duties of the employees and necessary accommodations;
2. first aid and safety personnel my be informed, when appropriate, if the
disability might require emergency treatment;
3. government officials investigating compliance with this Act shall be provided
relevant information on request; and
4. the results of such examination are used only accordance with this Act.

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HUMAN RESOURCES DEVELOPMENT PROGRAM
A. NATIONAL MANPOWER DEVELOPMENT PROGRAM – GOVERNMENT MACHINERY
Labor Code: Articles 43-56 (insofar as they have not been modified)
BOOK TWO
Human Resources Development Program
TITLE I
National Manpower Development Program1
CHAPTER I
National Policies and Administrative Machinery for Their Implementation
ARTICLE 43. Statement of Objective. — It is the objective of this Title to develop
human resources, establish training institutions, and formulate such plans and
programs as will ensure efficient allocation, development and utilization of the nation's
manpower and thereby promote employment and accelerate economic and social
growth.
ARTICLE 44. Definitions. — As used in this Title:
(a) "Manpower" shall mean that portion of the nation's population which has
actual or potential capability to contribute directly to the production of goods
and services.
(b) "Entrepreneurship" shall mean training for self-employment or assisting
individual or small industries within the purview of this Title.
ARTICLE 45. National Manpower and Youth Council; Composition. — To carry out
the objectives of this Title, the National Manpower and Youth Council, which is
attached to the Department of Labor for policy and program coordination and
hereinafter referred to as the Council, shall be composed of the Secretary of Labor as
ex-officio chairman, the Secretary of Education and Culture as ex-officio vice-
chairman, and as ex-officio members, the Secretary of Economic Planning, the
Secretary of Natural Resources, the Chairman of the Civil Service Commission, the
Secretary of Social Welfare, the Secretary of Local Government, the Secretary of
Science and Technology, the Secretary of Trade and Industry and the Director-General
of the Council. The Director General shall have no vote.
In addition, the President shall appoint the following members from the private sector:
two (2) representatives of national organizations of employers; two (2) representatives
of national workers' organizations; and one representative of national family and youth
organizations, each for a term of three (3) years.
(NOTE: 1st paragraph is repealed by Sec. 5 (TESDA creation), and the second,
by Sec. 7 of The TESDA ACT)
ARTICLE 46. National Manpower Plan. — The Council shall formulate a long-term
national manpower plan for the optimum allocation, development and utilization of
manpower for employment, entrepreneurship and economic and social growth. This
manpower plan shall, after adoption by the Council, be updated annually and
submitted to the President for his approval. Thereafter, it shall be the controlling plan
1 Substantively modified by The TESDA Act, therefore,impliedly inoperative
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for the development of manpower resources for the entire country in accordance with
the national development plan. The Council shall call upon any agency of the
Government or the private sector to assist in this effort.
(NOTE: Superseded by Sec. 10, TESDA Secretariat)
ARTICLE 47. National Manpower Skills Center. — The Council shall establish a
National Manpower Skills Center and regional and local training centers for the
purpose of promoting the development of skills. The centers shall be administered and
operated under such rules and regulations as may be established by the Council.
(NOTE: Sec. 19 and 20 of The TESDA ACT absorbed this article)
ARTICLE 48. Establishment and Formulation of Skills Standards. — There shall be
national skills standards for industry trades to be established by the Council in
consultation with employers' and workers' organizations and appropriate government
authorities. The Council shall thereafter administer the national skills standards.
(NOTE: This task is transferred to TESDA)
ARTICLE 49. Administration of Training Programs. — The Council shall provide,
through the Secretariat, instructor training, entrepreneurship development, training in
vocations, trades and other fields of employment, and assist any employer or
organization in training schemes designed to attain its objectives under rules and
regulations which the Council shall establish for this purpose. TAIaHE
The Council shall exercise, through the Secretariat, authority and jurisdiction over, and
administer, on-going technical assistance programs and/or grants-in-aid for manpower
and youth development including those which may be entered into between the
Government of the Philippines and international and foreign organizations and nations,
as well as persons and organizations in the Philippines.
In order to integrate the national manpower development efforts, all manpower
training schemes as provided for in this Code shall be coordinated with the Council,
particularly those having to do with the setting of skills standards. For this purpose,
existing manpower training programs in the government and in the private sector shall
be reported to the Council which may regulate such programs to make them conform
with national development programs.
This Article shall not include apprentices, learners and handicapped workers
as governed by appropriate provisions of this Code.
(NOTE: Superseded by Sec. 23 of The TESDA Act)
ARTICLE 50. Industry Boards. — The Council shall establish industry boards to
assist in the establishment of manpower development schemes, trades and skills
standards and such other functions as will provide direct participation of employers
and workers in the fulfillment of the Council's objectives, in accordance with
guidelines to be established by the Council and in consultation with the National
Economic and Development Authority.
The maintenance and operations of the industry boards shall be financed through a
funding scheme under such rates of fees and manners of collection and disbursements
63

as may be determined by the Council.
(NOTE: Read in relation to Sec. 26 of The TESDA Act)
ARTICLE 51. Employment Service Training Functions. — The Council shall utilize
the employment service of the Department of Labor for the placement of its graduates.
The Bureau of Employment Services shall render assistance to the Council in the
measurement of unemployment and underemployment, conduct of local manpower
resource surveys and occupational studies including an inventory of the labor force,
establishment and maintenance without charge of a national register of technicians
who have successfully completed a training program under this Act, and skilled
manpower including its publication, maintenance of an adequate and up-to-date
system of employment information.
(NOTE: Council now refers to TESDA, Bureau of Employment Services to
Bureau of Local Employment)
ARTICLE 52. Incentive Scheme. — An additional deduction from taxable income of
one-half (1/2) of the value of labor training expenses incurred for development
programs shall be granted to the person or enterprise concerned provided that such
development programs, other than apprenticeship, are approved by the Council and the
deduction does not exceed ten percent (10%) of the direct labor wage. cDHAES
There shall be a review of the said scheme two years after its
implementation.
(NOTE: Superseded by Sec. 27 of The TESDA Act)
ARTICLE 53. Council Secretariat. — The Council shall have a Secretariat headed by
a Director-General who shall be assisted by a Deputy Director-General, both of whom
shall be career administrators appointed by the President of the Philippines on
recommendation of the Secretary of Labor. The Secretariat shall be under the
administrative supervision of the Secretary of Labor and shall have an Office of
Manpower Planning and Development, an Office of Vocational Preparation, a
National Manpower Skills Center, regional manpower development offices and such
other offices as may be necessary.
The Director-General shall have the rank and emoluments of an undersecretary and
shall serve for a term of ten (10) years. The Executive-Directors of the Office of
Manpower Planning and Development, the Office of Vocational Preparation and the
National Manpower Skills Center shall have the rank and emoluments of a bureau
director and shall be subject to Civil Service Law, rules and regulations. The Director-
General, Deputy Director-General and Executive Directors shall be natural-born
citizens, between thirty and fifty years of age at the time of appointment, with a
master's degree or its equivalent, and experience in national planning and development
of human resources. The Executive Director of the National Manpower Skills Center
shall, in addition to the foregoing qualifications, have undergone training in center
management. Executive Directors shall be appointed by the President on the
recommendations of the Secretary of Labor and Employment.
The Director-General shall appoint such personnel necessary to carry out the
objectives, policies and functions of the Council subject to Civil Service rules. The
regular professional and technical personnel shall be exempt from WAPCO rules and
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regulations.
The Secretariat shall have the following functions and responsibilities:
1. To prepare and recommend the manpower plan for approval by the Council;
2. To recommend allocation of resources for the implementation of the manpower
plan as approved by the Council;
3. To carry out the manpower plan as the implementing arm of the Council;
4. To effect the efficient performance of the functions of the Council and the
achievement of the objectives of this Title;
5. To determine specific allocation of resources for the projects to be undertaken
pursuant to approved manpower plans;
6. To submit to the Council periodic reports on progress and accomplishment of
work programs;
7. To prepare for approval by the Council an annual report to the President on
plans, programs and projects on manpower and out-of-school youth development;
8. To enter into agreements to implement approved plans and programs and
perform any and all such acts as will fulfill the objectives of this Codeas well as
ensure the efficient performance of the functions of the Council; and
9. To perform such other functions as may be authorized by the Council.
(NOTE: Superseded by Sec. 10 of The TESDA Act creating the TESDA
Secretariat and specifying its functions)
ARTICLE 54. Regional Manpower Development Offices. — The Council shall create
regional manpower development offices which shall determine the manpower needs of
the industry, agriculture and other sectors of the economy within their respective
jurisdictions; provide the Council's central planners with the data for updating the
national manpower plan; recommend programs for the regional level agencies engaged
in manpower and youth development within the policies formulated by the Council;
and administer and supervise Secretariat training programs within the region and
perform such other functions as may be authorized by the Council.
(NOTE: Superseded by Sec. 14 (g) of The TESDA Act, providing for Regional
TESDA Offices)
ARTICLE 55. Consultants and Technical Assistance, Publication, and Research. — In
pursuing its objectives, the Council is authorized to set aside a portion of its
appropriation for the hiring of the services of qualified consultants, and/or private
organizations for research work and publication. It shall avail itself of the services of
the Government as may be required.(NOTE: Reproduced and modified in Sec. 17 of
The TESDA Act)
ARTICLE 56. Rules and Regulations. — The Council shall define its broad functions
and issue appropriate rules and regulations necessary to implement the provision of this
Code. (NOTE: Superseded by Sec. 36 of The TESDA Act)
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R.A. 7796, THE TESDA ACT
AN ACT CREATING THE TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY, PROVIDING FOR ITS POWERS, STRUCTURE
AND FOR OTHER PURPOSES
SECTION 1. Title. — This Act shall be known as the “Technical Educational and Skills
Development Act of 1994” or the “TESDA Act of 1994.”
SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to provide
relevant, accessible, high quality and efficient technical education and skills development in
support of the development of high quality Filipino middle-level manpower responsive to and
in accordance with Philippine development goals and priorities.
The State shall encourage active participation of various concerned sectors, particularly
private enterprises, being direct participants in and immediate beneficiaries of a trained and
skilled work force, in providing technical education and skills development opportunities.
SECTION 3. Statement of Goals and Objectives. — It is the goal and objective of this Act
to:
a) Promote and strengthen the quality of technical education and skills development programs
to attain international competitiveness.
b)Focus technical education and skills development on meeting the changing demands for
quality middle-level manpower;
c) Encourage critical and creative thinking by disseminating the scientific and technical
knowledge base of middle-level manpower development programs;
d) Recognize and encourage the complementary roles of public and private institutions in
technical education and skills development and training systems; and
e) Inculcate desirable values through the development of moral character with emphasis on
work ethic, self-discipline, self- reliance and nationalism.
SECTION 4. Definition of Terms. — As used in this Act:
a) “Skill” shall mean the acquired and practiced ability to carry out a task or job;
b) “Skills Development” shall mean the process through which learners and workers are
systematically provided with learning opportunities to acquire or upgrade, or both, their
ability, knowledge and behavior pattern required as qualifications for a job or range of jobs in
a given occupational area;
c) “Technical Education” shall refer to the education process designed at post-secondary and
lower tertiary levels, officially recognized as non-degree programs aimed at preparing
technicians, para-professionals and other categories of middle-level workers by providing
them with a broad range of general education, theoretical, scientific and technological studies,
and related job skills training;
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d) “Trade” shall mean any group of interrelated jobs or any occupation which is traditionally
or officially recognized as craft or artisan in nature requiring specific qualifications that can be
acquired through work experience and/or training;
e) “Middle-Level Manpower” refers to those :
1) who have acquired practical skills and knowledge through formal or non-formal
education and training equivalent to at least a secondary education but preferably a
post-secondary education with a corresponding degree or diploma; or
2) skilled workers who have become highly competent in their trade or craft as
attested by industry.
f) “Private Enterprises” refers to an economic system under which property of all kinds can be
privately owned and in which individuals, alone or in association with another, can embark on
a business activity. This includes industrial, agricultural, or agro-industrial establishments
engaged in the production, manufacturing, processing, repacking or assembly of goods
including service-oriented enterprises;
g) “Trainers” shall mean persons who direct the practice of skills towards immediate
improvement in some task;
h) “Trainors/trainers” shall mean persons who provide training to trainers aimed at developing
the latter’s capacities for imparting attitudes, knowledge, skills and behavior patterns required
for specific jobs, tasks, occupations or group of related occupations;
i) “Trainees” shall mean persons who are participants in a vocational, administrative or
technical training program for the purpose of acquiring and developing job-related skills;
j) “Apprenticeship” shall mean training within employment with compulsory related
theoretical instructions involving a contract between an apprentice and an employer on an
approved apprenticeable occupation;
k) “Apprentice” is a person undergoing training for an approved apprenticeable occupation
during an established period assured by an apprenticeship agreement;
l) “Apprenticeship Agreement” is a contract wherein a prospective employer binds himself to
train the apprentice who in turn accepts the terms of training for a recognized apprenticeable
occupation emphasizing the rights, duties and responsibilities of each party;
m) “Apprenticeable Occupation” is an occupation officially endorsed by a tripartite body and
approved for apprenticeship by the Authority;
n) “Learners” refer to persons hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable. Learnership programs must be approved by the Authority.
o) “User-Led” or “Market-Driven Strategy” refers to a strategy which promotes strengthened
linkages between educational/training institutions and industry to ensure that appropriate skills
and knowledge are provided by the educational system;
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p) “Dual System/Training” refers to a delivery of quality technical and vocational education
which requires training to be carried out alternatively in two venues: In school and in the
production plant. In-school training provides the trainee the theoretical foundation, basic
training, guidance and human formation, while in-plant training develops his skills and
proficiency in actual work conditions as it continues to inculcate personal discipline and work
values;
q) “Levy Grant System” refers to a legal contribution from participating employers who would
be beneficiaries of the program (often as a percentage of the payroll) which is subsequently
turned over or rebated to enterprises offering employee training programs.
SECTION 5. Technical Education and Skills Development Authority; Creation. — To
implement the policy declared in this Act, there is hereby created a Technical Education and
Skills Development Authority (TESDA), hereinafter referred to as the Authority, which shall
replace and absorb the National Manpower and Youth Council
(NMYC), the Bureau of Technical and Vocational Education (BTVE) and the personnel and
functions pertaining to technical-vocational education in the regional offices of the
Department of Education, Culture and Sports (DECS) and the apprenticeship program of the
Bureau of Local Employment of the Department of Labor and Employment.
SECTION 6. Composition of the Authority. — The Authority shall be composed of the
TESDA Board and TESDA Secretariat.
SECTION 7. Composition of the TESDA Board. — The TESDA Board shall be composed of
the following:
1. The Secretary of Labor and Employment - Chairperson
2. Secretary of Education, Culture and Sports - Co-Chairperson
3. Secretary of Trade and Industry - Co-Chairperson
4. Secretary of Agriculture - Member
5. Secretary of Interior and Local Government - Member
6. Director-General of the TESDA Secretariat - Member
In addition, the President of the Philippines shall appoint the following members from the
private sector: two (2) representatives, from the employer/industry organization, one of whom
shall be a woman; three (3) representatives, from the labor sector, one of whom shall be a
woman; and two (2) representatives of the national associations of private technical-vocational
education and training institutions, one of whom shall be a woman. As soon as all the
members of the private sector are appointed, they shall so organize themselves that the term of
office of one-third (1/3) of their number shall expire every year. The member from the private
sector appointed thereafter to fill vacancies caused by expiration of terms shall hold office for
three (3) years.
The President of the Philippines may, however, revise the membership of the TESDA Board,
whenever the President deems it necessary for the effective performance of the Board’s
functions through an administrative order.
The TESDA Board shall meet at least twice a year, or as frequently as may be deemed
necessary by its Chairperson. In the absence of the Chairperson, a Co-Chairperson shall
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preside. In case any member of the Board representing the Government cannot attend the
meeting, he or she shall be regularly represented by an undersecretary or deputy-director
general, as the case may be, to be designated by such member for the purpose.
The benefits, privileges and emoluments of the Board shall be consistent with existing laws
and rules.
SECTION8. Powers and Functions of the Board. — The Authority shall primarily be
responsible for formulating, continuing, coordinated and fully integrated technical education
and skills development policies, plans and programs taking into consideration the following:
a) the State policy declared herein of giving new direction and thrusts to efforts in
developing the quality of Filipino human resource through technical education and
skills development;
b) the implementation of the above-mentioned policy requires the coordination and
cooperation of policies, plans, and programs of different concerned sectors of
Philippine society;
c) equal participation of representatives of industry groups, trade associations,
employers, workers and government shall be made the rule in order to ensure that
urgent needs and recommendations are readily addressed; and
d) improved linkages between industry, labor and government shall be given priority in
the formulation of any national-level plan.
The Board, shall have the following powers:
1) promulgate, after due consultation with industry groups, trade associations, employers,
workers, policies, plans, programs and guidelines as may be necessary for the effective
implementation of this Act;
2) organize and constitute various standing committees, subsidiary groups, or technical
working groups for efficient integration, coordination and monitoring technical education
and skills development programs at the national, regional, and local levels;
3) enter into, make, execute, perform and carry-out domestic and foreign contracts subject
to existing laws, rules and regulations;
4) restructure the entire sub-sector consisting of all institutions and programs involved in the
promotion and development of middle- level manpower through upgrading, merger
and/or phase-out following a user-led strategy;
5) approve trade skills standards and trade tests as established and conducted by private
industries;
6) establish and administer a system of accreditation of both public and private institutions;
7) establish, develop and support institutions’ trainors’ training and/or programs;
8) lend support and encourage increasing utilization of the dual training system as provided
for by Republic Act No. 7686;
9) exact reasonable fees and charges for such tests and trainings conducted and retain such
earnings for its own use, subject to guidelines promulgated by the Authority;
10) allocate resources, based on the Secretariat’s recommendations, for the programs and
projects it shall undertake pursuant to approved National Technical Education and Skills
Development Plan;
11) determine and approve systematic funding schemes such as the Levy and Grant scheme
for technical education and skills development purposes;
12) create, when deemed necessary, an Advisory Committee which shall provide expert and
technical advice to the Board to be chosen from the academe and the private sector:
66

Provided, That in case the Advisory Committee is created, the Board is hereby authorized
to set aside a portion of its appropriation for its operation; and
13) perform such other duties and functions necessary to carry out the provisions of this Act
consistent with the purposes of the creation of TESDA.
SECTION 9. Power to Review and Recommend Action. — The Authority shall review and
recommend action to concerned authorities on proposed technical assistance programs and
grants-in- aid for technical education or skills development, or both, including those which
may be entered into between the Government of the Philippines and other nations, including
international and foreign organizations, both here and abroad.
SECTION 10. The TESDA Secretariat. — There is hereby created a Technical Education and
Skills Development Authority Secretariat which shall have the following functions and
responsibilities:
1. to establish and maintain a planning process and formulate a national technical education
and skills development plan in which the member-agencies and other concerned entities
of the Authority at various levels participate;
2. to provide analytical inputs to policy decision-making of the Authority on allocation of
resources and institutional roles and responsibilities as shall be embodied in annual
agencies technical education and skills development plans, in accordance with the
manpower plan for middle-level skilled workers as approved by the Authority;
3. to recommend measures, and implement the same upon approval by the Authority, for the
effective and efficient implementation of the national technical education and skills
development plan;
4. to propose to the Authority the specific allocation of resources for the programs and
projects it shall undertake pursuant to approved national technical education and skills
development plan;
5. to submit to the Authority periodic reports on the progress and accomplishment of work
programs of implementation of plans and policies for technical educational and skills
development;
6. to prepare for approval by the Authority an annual report to the President on technical
education and skills development;
7. to implement and administer the apprenticeship program as provided for in Section 18 of
this Act;
8. to prepare and implement upon approval by the Authority a program for the training of
trainers, supervisors, planners and managers as provided for in Section 23 of this Act;
9. to enter into agreement to implement approved plans and programs and perform activities
as shall implement the declared policy of this Act; and
10. to perform such other functions and duties as may be assigned by the Board.
SECTION 11. Director-General. — The TESDA Secretariat shall be headed by a Director-
General, who shall likewise be a member of the TESDA Board. The Director-General shall be
appointed by the President of the Philippines and shall enjoy the benefits, privileges ad
emoluments equivalent to the rank of Undersecretary.
As Chief Executive Officer of the TESDA Secretariat, the Director- General shall exercise
general supervision and control over its technical and administrative personnel.
SECTION 12. Deputy Director-General. — The Director-General shall be assisted by two (2)
Deputy Directors-General to be appointed by the President of the Philippines on
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recommendation of the TESDA Board. One to be responsible for Vocational and Technical
Education and Training and one to be responsible for Policies and Planning.
The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent
to the rank of Assistant Secretary.
SECTION13. Chief of Services for Administration. — The Director-General shall also be
assisted by a Chief of Services for Administration who shall be a Career Civil Service Official
to be appointed by the TESDA Board.
SECTION 14. Structural Organization and Personnel. — The TESDA Secretariat, in addition
to the offices of the Director-General, Deputy Director-General and Chief of Services for
Administration shall be composed of the following offices to be headed by an Executive
Director to be appointed by the Director-General and shall have the rank and emoluments of
Director IV.
a) Planning Office (PO) — The Planning Office shall be under the Office of the Deputy
Director-General and shall have the following functions:
1. to design and establish planning processes and methodologies which will particularly
enhance the efficiency of resource allocation decisions within the technical education and
skills development sector;
2. to lead in the preparation and periodic updating of a national plan for technical education
and skills development which shall become the basis for resource allocation decisions
within the sector;
3. to conduct researches, studies and develop information systems for effective and efficient
planning and policy-making within the sector;
4. to develop and implement programs and projects aimed at building up planning
capabilities of various institutions within the sector; and
5. to perform such other powers and functions as may be authorized by the Authority.
b) Skills Standards and Certification Office (SSCO). — The Skills Standards and Certification
Office shall be under the office of the Deputy Director-General and shall have the following
functions:
1. to develop and establish a national system of skills standardization, testing and
certification in the country;
2. to design, innovate and adopt processes and methodologies whereby industry groups and
workers’ guilds take note on progressively the responsibility of setting skills standards for
identified occupational areas, and the local government units actively participate in
promoting skills standards, testing and certification;
3. to establish and implement a system of accrediting private enterprises, workers’
associations and guilds and public institutions to serve as skills testing venues;
4. to conduct research and development on various occupational areas in order to
recommend policies, rules and regulations for effective and efficient skills and
standardization, testing and certification system in the country; and
5. to perform such other duties and functions as may be authorized.
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c) National Institute for Technical Vocational and Education Training (NITVET). — The
National Institute for Technical Vocational and Education Training to be under the office of
the Deputy Director-General and shall have the following functions:
a. to serve as the research and development arm of the government in the field of technical-
vocational education and training;
b. to develop curricula and program standards for various technical-vocational education
and training areas;
c. to develop and implement an integrated program for continuing development of trainors,
teachers and instructors within the technical education and skills development sector;
d. to develop programs and projects which will build up institutional capabilities within the
sector; and
e. to perform such other powers and functions as may be authorized.
d) Office of Formal Technical Vocational Education and Training (OFFVET). The Office of
Formal Technical Vocational Education and Training to be under the office of the Deputy
Director-General and shall have the following functions:
1. to provide policies, measures and guidelines for effective and efficient administration of
formal technical-vocational education and training programs implementing by various
institutions in the country;
2. to establish and maintain a system for accrediting, coordinating integrating, monitoring
and evaluating the different formal technical- vocational education and training program
vis-a-vis the approved national technical education and skills development plan;
3. to establish and maintain a network of institutions engaged in institutionalized technical-
vocational education and training, particularly with local government units; and
4. to perform such other duties and functions as may be authorized.
e) Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET). —
The Office of the Non-Formal Technical- Vocational Education and Training to be under the
Office of the Deputy Director-General and shall have the following functions:
1. to provide direction, policies and guidelines for effective implementation of non-formal,
community-based technical- vocational education and training;
2. to accredit, coordinate, monitor and evaluate various non- formal technical-vocational
education and training programs implemented by various institutions particularly, by
local government units;
3. to establish and maintain a network of institutions including local government units, non-
government organizations implementing non-formal, community-based technical-
vocational education and training;
4. to perform such other powers and functions as may be authorized.
f) Office of Apprenticeship (OA). — The Office of Apprenticeship shall be under the Office
of the Deputy Director-General and shall have the following functions:
1. to provide direction, policies and guidelines on the implementation of the Apprenticeship
system;
2. to accredit, coordinate, monitor and evaluate all apprenticeship schemes and program
implemented by various institutions and enterprises;
3. to establish a network of institutions and enterprises conducting apprenticeship schemes
and programs;
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4. to perform such other powers and functions as may be authorized.
g) Regional TESDA Offices. — The Regional TESDA Offices shall be headed by Regional
Directors with the rank and emoluments of Director IV to be appointed by the President.
The Regional TESDA Offices shall be under the direct control of the Director-General and
shall have the following functions:
1. to serve as Secretariat to Regional Technical Education Skills Development (TESDA)
Committees;
2. to provide effective supervision, coordination and integration of technical education and
skills development programs, projects and related activities in their respective
jurisdiction;
3. to develop and recommend TESDA programs for regional and local-level implementation
within the policies set by the Authority;
4. to perform such other duties and functions as may be deemed necessary.
SECTION 15. The Provincial TESDA Offices. — The Provincial Offices shall be headed by
Skill Development Officers who shall have the rank and emoluments of a Director III.
The Provincial TESDA Offices shall be under the direct control of the Director-General and
shall have the following functions:
1. to serve as Secretariat to Provincial TESDA Committees;
2. to provide technical assistance particularly to local government units for effective
supervision, coordination, integration and monitoring of technical-vocational education
and training programs within their localities;
3. to review and recommend TESDA programs for implementation within their localities;
and
4. to perform such other duties and functions as may be authorized.
Furthermore, the TESDA Secretariat may be further composed by such offices as may be
deemed necessary by the Authority. The Director-General shall appoint such personnel
necessary to carry out the objectives, policies and functions of the Authority subject to Civil
Service laws, rules and regulations.
SECTION 16. Compliance with the Salaries Standardization Law. — The compensation and
emoluments of the officials and employees of the Authority shall be in accordance with the
salary standardization law and other applicable laws under the national compensation and
classification plan.
SECTION 17. Consultants and Technical Assistance, Publication and Research. — In
pursuing its objectives, the Authority is hereby authorized to set aside a portion of its
appropriation for the hiring of services of qualified consultants, and private organizations for
research work and publication in the field of technical education and skills development. It
shall avail itself of the services of other agencies of the Government as may be required.
SECTION18. Transfer of the Apprenticeship Program. — The Apprenticeship Program of the
Bureau of Local Employment of the Department of Labor and Employment shall be
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transferred to the Authority which shall implement and administer said program in accordance
with existing laws, rules and regulations.
SECTION 19. Technical Education and Skills Development Committees. — The Authority
shall establish Technical Education and Skills Development Committees at the regional and
local levels to coordinate and monitor the delivery of all skills development activities by the
public and private sectors. These committees shall likewise serve as the Technical Education
and Skills Development Committees of the Regional and local development councils. The
composition of the Technical Education and Skills Development Committees shall be
determined by the Director-General subject to the guidelines to be promulgated by the
Authority.
SECTION 20. Skills Development Centers. — The Authority shall strengthen the network of
national, regional and local skills training centers for the purpose of promoting skills
development.
This network shall include skills training centers in vocational and technical schools, technical
institutes, polytechnic colleges, and all other duly accredited public and private dual system
educational institutions. The technical education and skills development centers shall be
administered and operated under such rules and regulations as may be established by the
Authority in accordance with the National Technical Education and Skills Development Plan.
SECTION 21. Formulation of a Comprehensive Development Plan for Middle-Level
Manpower. — The Authority shall formulate a comprehensive development plan for middle-
level manpower based on a national employment plan or policies for the optimum allocation,
development and utilization of skilled workers for employment entrepreneurship and
technology development for economic and social growth. This plan shall, after adoption by the
Authority, be updated periodically and submitted to the President of the Philippines for
approval. Thereafter, it shall be the plan for technical education and skills development for the
entire country within the framework of the National Development Plan. The Authority shall
direct the TESDA Secretariat to call on its member- agencies, the private sector and the
academe to assist in this effort.
The comprehensive plan shall provide for reformed industry-based training program including
apprenticeship, dual training system and other similar schemes intended to:
a) promote maximum protection and welfare of the worker- trainee;
b) improve the quality and relevance and social accountability of technical education and
skills development;
c) accelerate the employment-generation efforts of the government; and
d) expand the range of opportunities for upward social mobility of the school-going
population beyond the traditional higher levels of formal education.
All government and non-government agencies receiving financial and technical assistance
from the government shall be required to formulate their respective annual agency technical
education and skills development plan in line with the national technical education and skills
development plan. The budget to support such plans shall be subject to review and
endorsement by the Authority to the Department of Budget and Management.
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The Authority shall evaluate the efficiency and effectiveness of agencies skills development
program and schemes to make them conform with the quantitative and qualitative objectives
of the national technical education and skills development plan.
SECTION 22. Establishment and Administration of National Trade Skills Standards. — There
shall be national occupational skills standards to be established by TESDA-accredited industry
committees. The Authority shall develop and implement a certification and accreditation
program in which private industry groups and trade associations are accredited to conduct
approved trade tests, and the local government units to promote such trade testing activities in
their respective areas in accordance with the guidelines to be set by the Authority.
The Secretary of Labor and Employment shall determine the occupational trades for
mandatory certification.
All certificates relating to the national trade skills testing and certification system shall be
issued by the Authority through the TESDA Secretariat.
SECTION 23. Administration of Training Programs. — The Authority shall design and
administer training programs and schemes that will develop the capabilities of public and
private institutions to provide quality and cost-effective technical educational and skills
development and related opportunities. Such training programs and schemes shall include
teacher’s trainors’ training, skills training for entrepreneur development and technology
development, cost- effective training in occupational trades and related fields of employment,
and value development as an integral component of all skills training programs.
SECTION 24. Assistance to Employers and Organizations. — The Authority shall assist any
employer or organization engaged in skills training schemes designed to attain its objectives
under rules and regulations which the Authority shall establish for this purpose.
SECTION 25. Coordination of All Skills Training Schemes. — In order to integrate the
national skills development efforts, all technical education and skills training schemes as
provided for in this Act shall be coordinated with the Authority particularly those having to do
with the setting of trade skills standards. For this purpose, existing technical education and
skills training programs in the Government and in the private sector, specifically those wholly
or partly financed with government funds, shall be reported to the Authority which shall assess
and evaluate such programs to ensure their efficiency and effectiveness.
SECTION 26. Industry Boards. — The Authority shall establish effective and efficient
institutional arrangements with industry boards and such other bodies or associations to
provide direct participation of employers and workers in the design and implementation of
skills development schemes, trade skills standardization and certification and such other
functions in the fulfillment of the Authority’s objectives.
SECTION 27. Incentives Schemes. — The Authority shall develop and administer appropriate
incentives schemes to encourage government and private industries and institutions to provide
high- quality technical education and skills development opportunities.
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SECTION 28. Skills Development Opportunities. — The Authority shall design and
implement an effective and efficient delivery system for quality technical education and skills
development opportunities particularly in disadvantaged sectors, with new tools of wealth
creation and with the capability to take on higher value-added gainful activities and to share
equitably in productivity gains.
SECTION 29. Devolution of TESDA’s Training Function to Local Governments. — In
establishing the delivery system provided for in the preceding Section, the Authority shall
formulate, implement and finance a specific plan to develop the capability of local government
units to assume ultimately the responsibility for effectively providing community-based
technical education and skills development opportunities: Provided, however, That there shall
be formulated and implemented, an effective and timely retraining of TESDA personnel that
would be affected by the devolution to ensure their being retained if the concerned local
government units would not be able to absorb them.
SECTION30. Skills Olympics. — To promote quality skills development in the country and
with the view of participating in international skills competitions, the Authority, with the
active participation of private industries, shall organize and conduct annual National Skills
Olympics. The Authority, through the TESDA Secretariat, shall promulgate the necessary
rules and guidelines for the effective and efficient conduct of Annual National Skills Olympics
and for the country’s participation in international skills Olympics.
SECTION31. The TESDA Development Fund. — A TESDA Development Fund is hereby
established, to be managed/administered by the Authority, the income from which shall be
utilized exclusively in awarding of grants and providing assistance to training institutions,
industries, local government units for upgrading their capabilities and to develop and
implement training and training-related activities. The contribution to the fund shall be the
following:
1. a one-time lump sum appropriation from the National Government;
2. an annual contribution from the Overseas Workers Welfare Administration Fund,
the amount of which should be part of the study on financing in conjunction with
letter (D) of Section 34;
3. donations, grants, endowments, and other bequests or gifts, and
4. any other income generated by the Authority.
The TESDA Board shall be the administrator of the fund, and as such, shall formulate the
necessary implementing guidelines for the management of the fund, subject to the following:
a) unless otherwise stipulated by the private donor, only earnings of private contributions shall
be used; and b) no part of the seed capital of the fund, including earnings, thereof, shall be
used to underwrite expenses for administration.
The Board shall appoint a reputable government-accredited investment institution as fund
manager, subject to guidelines promulgated by the Board.
SECTION 32. Scholarship Grants. — The Authority shall adopt a system of allocation and
funding of scholarship grants which shall be responsive to the technical education and skills
development needs of the different regions in the country.
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SECTION 33. TESDA Budget. — The amount necessary to finance the initial implementation
of this Act shall be charged against the existing appropriations of the NMYC and the BTVE.
Thereafter, such funds as may be necessary for the continued implementation of this Act shall
be included in the annual General Appropriations Act.
SECTION 34. Transitory Provisions. —
a) Within two (2) months after the approval of this Act, the President shall, in consultation
with the Secretary of Labor and Employment and the Secretary of Education, Culture and
Sports, appoint the private sector representatives of the TESDA Board.
b) Within three (3) months after the appointment of the private sector representatives, the
President shall, upon the recommendation of the Board, appoint the Director-General.
c) Within four (4) months after the appointment of the Director- General, the Board shall
convene to determine the organizational structure and staffing pattern of the Authority.
d) Within one (1) year after the organization of the Authority, the Board shall commission
an expert group on funding schemes for the TESDA Development Fund, as provided in
Section 31, the results of which shall be used as the basis for appropriate action by the
Board.
e) The personnel of the existing National Manpower and Youth Council (NMYC) of the
Department of Labor and Employment and the Bureau of Technical and Vocational
Education (BTVE) of the Department of Education, Culture and Sports, shall, in a
holdover capacity, continue to perform their respective duties and responsibilities and
receive their corresponding salaries and benefits until such time when the organizational
structure and staffing pattern of the Authority shall have been approved by the Board:
Provided, That the preparation and approval of the said new organizational structure and
staffing pattern shall, as far as practicable, respect and ensure the security of tenure and
seniority rights of affected government employees.
Those personnel whose positions are not included in the new staffing pattern approved by the
Board or who are not reappointed or who choose to be separated as a result of the
reorganization shall be paid their separation or retirement benefits under existing laws.
SECTION 35. Automatic Review. — Every five (5) years, after the effectivity of this Act, an
independent review panel composed of three (3) persons appointed by the President shall
review the performance of the Authority and shall make recommendations, based on its
findings to the President and to both Houses of Congress.
SECTION 36. Implementing Rules and Guidelines. — The TESDA Board shall issue, within a
period of ninety (90) days after the effectivity of this Act, the rules and regulations for the
effective implementation of this Act.
The TESDA Board shall submit to the Committees on Education, Arts and Culture of both
Houses of Congress copies of the implementing rules and guidelines within thirty (30) days
after its promulgation.
Any violation of this Section shall render the official/s concerned liable under R.A. No. 6713,
otherwise known as the “Code of Conduct and Ethical Standards for Public Officials, and
Employees” and other existing administrative and/or criminal laws.
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SECTION 37. Repealing Clause. — All laws, presidential decrees, executive orders,
presidential proclamation, rules and regulations or parts thereof contrary to or inconsistent
with this Act are hereby repealed or modified accordingly.
B. Apprenticeship and Learnership
Labor Code: Articles 57-77
ARTICLE 57. Statement of Objectives. — This Title aims:
1. To help meet the demand of the economy for trained manpower;
2. To establish a national apprenticeship program through the participation of
employers, workers and government and non-government agencies; and
3. To establish apprenticeship standards for the protection of apprentices.
Omnibus Rules: Book II, Rules VI
RULE VI: Apprenticeship Training and Employment of Special Workers
SECTION 1. Objectives. — The promotion, development, and maintenance of
apprenticeship programs shall have the following objectives:
(a) To meet the needs of the economy for training manpower in the widest possible
range of employment;
(b) To establish a national apprenticeship program through the participation of
employers, workers, government, civic and other groups; and
(c) To establish apprenticeship standards for the protection of apprentices and
upgrading of skills.
ARTICLE 58. Definition of Terms. — As used in this Title:
(a) "Apprenticeship" means practical training on the job supplemented by related
theoretical instruction.
(b) An "apprentice" is a worker who is covered by a written apprenticeship
agreement with an individual employer or any of the entities recognized under
this Chapter.
(c) An "apprenticeable occupation" means any trade, form of employment or
occupation which requires more than three (3) months of practical training on the
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job supplemented by related theoretical instruction. ASEcHI
(d) "Apprenticeship agreement" is an employment contract wherein the employer
binds himself to train the apprentice and the apprentice in turn accepts the terms
of training.
(NOTE: See Sec. 4 of The TESDA Act, letters (j), (k), (l), (m))
Omnibus Rules: Book II, Rules VI
RULE VI: Apprenticeship Training and Employment of Special Workers
SECTION 2. Definition of terms. —
(a) "Apprenticeship" means any training on the job supplemented by related
theoretical instructions involving apprenticeable occupations and trades as may be
approved by the Secretary of Labor and Employment.
(b) "Apprentice" is a worker who is covered by a written apprenticeship agreement
with an employer.
(c) "Apprenticeship agreement" is a written employment contract wherein the
employer binds himself to train the apprentice and the latter in turn agrees to work
for the employer.
(d) "Apprenticeable occupation" means any trade, form of employment or
occupation approved for apprenticeship by the Secretary of Labor and Employment,
which requires for proficiency more than three months of practical training on the
job supplemented by related theoretical instructions.
(e) "Apprenticeship standards" means the written implementing plans and conditions
of an apprenticeship program.
(f) "Bureau" means the Bureau of Apprenticeship.
(g) "Employer" means the individual firm or any other entity qualified to hire
apprentice under the Code.
(h) "On the job training" is the practical work experience through actual
participation in productive activities given to or acquired by an apprentice.
(i) "Related theoretical instructions" means technical information based on
apprenticeship standards approved by the Bureau designed to provide the apprentice
theoretical competence in his trade.
(j) "Highly Technical Industries" means trade, business, enterprise, industry, or other
activity, which is engaged in the application of advanced technology.
SECTION 3. Voluntary nature of apprenticeship program. — The organization of
apprenticeship program shall be primarily a voluntary undertaking ofemployers, except as
otherwise provided.
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SECTION 4. Venue of on-the-job training. — The practical aspect of on-the-job training of
apprentices may be undertaken:
(a) In the plant, shop or premises of the employer or firm concerned if the
apprenticeship program is organized by an individual employer or firm;
(b) In the premises of one or several firms designated for the purpose by the
organizer of the program if such organizer is an association ofemployers, civic
group and the like; and
(c) In a Department of Labor and Employment Training Center or other public
training institutions with which the Bureau has made appropriate arrangements.
SECTION 5. On-the-job training to be explicitly described. — The manner in which
practical or on-the-job training shall be provided must be specifically described in the
apprenticeship standards of a particular program.
SECTION 6. Recognition of apprenticeship programs. — To enjoy the benefits which the
Bureau or other government agencies may extend to duly recognized apprenticeship
programs, an employer shall submit in quadruplicate to the Training Section of the
appropriate Apprenticeship Division of theappropriate Regional Office the apprenticeship
standards of the proposed program prepared in accordance with guidelines set by the
Bureau.
If the apprenticeship standards are found in order, a certificate of recognition shall be issued
by the Apprenticeship Division concerned within five (5) days from receipt thereof.
SECTION 7. Benefits accruing to recognition. — An entity with a recognized
apprenticeship program shall be entitled to technical and other assistance from the Bureau
and other government agencies and to the corresponding training-expense deduction from
its income tax. The rate of such tax deduction incentive and the procedure of availment
thereof are provided in Section 42 of this Rule.
SECTION 8. Trades to be included in apprenticeship programs. — Only trades and
occupations declared apprenticeable by the Secretary of Labor and Employment may be
included in apprenticeship programs.
SECTION 9. Who may establish programs. — Any entity, whether or not organized for
profit may establish or sponsor apprenticeship programs and employ apprentices.
SECTION 10. Assistance by non-profit entities. — In lieu of organizing programs, non-
profit entities may:
(a) Execute an agreement with firms of their choice with on-going apprenticeship
programs, directly or through the Department of Labor and Employment, assuming
responsibility for training deserving apprentices selected by an employer who shall
pay the apprentices;
(b) Give financial and other contributions for the promotion of apprenticeship
programs; or
(c) Provide other forms of assistance.
Apprentices who train under such programs shall be properly identified in
apprenticeship agreements with the employer. However, responsibility for
compliance with employees' compensation, social security, medicare and other labor
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laws shall remain with the employer who benefits from the productive efforts of the
apprentices.
ARTICLE 59. Qualifications of Apprentice. — To qualify as an apprentice, a person
shall:
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for appropriate tests; and
(c) Possess the ability to comprehend and follow oral and written instructions.
Trade and industry associations may recommend to the Secretary of Labor appropriate
educational requirements for different occupations.
(NOTE: As regards age, see RA 7610 (law on child abuse protection), prohibiting, unless
under exceptional circumstances, employment below the age of 15)
ARTICLE 60. Employment of Apprentices. — Only employers in the highly technical
industries may employ apprentices and only in apprenticeable occupations approved by
the Minister of Labor and Employment.
ARTICLE 61. Contents of Apprenticeship Agreements. — Apprenticeship agreements,
including wage rates of apprentices, shall conform to the rules issued by the Minister of
Labor and Employment. The period of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates below the legal minimum wage,
which in no case shall start below 75 per cent of the applicable minimum wage, may be
entered into only in accordance with apprenticeship programs duly approved by the
Minister of Labor and Employment. The Ministry shall develop standard model
programs of apprenticeship.
ARTICLE 62. Signing of Apprenticeship Agreement. — Every apprenticeship agreement
shall be signed by the employer or his agent, or by an authorized representative of any of
the recognized organizations, associations or groups and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf by his parent or
guardian or, if the latter is not available, by an authorized representative of the
Department of Labor, and the same shall be binding during its lifetime.
Every apprenticeship agreement entered into under this Title shall be ratified by the
appropriate apprenticeship committees, if any, and a copy thereof shall be furnished both
the employer and the apprentice.
ARTICLE 63. Venue of Apprenticeship Programs. — Any firm, employer, group or
association, industry organization or civic group wishing to organize an apprenticeship
program may choose from any of the following apprenticeship schemes as the training
venue for apprentice:
(a) Apprenticeship conducted entirely by and within the sponsoring firm,
establishment or entity;
(b) Apprenticeship entirely within a Department of Labor and Employment
training center or other public training institution; or
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(c) Initial training in trade fundamentals in a training center or other institution
with subsequent actual work participation within the sponsoring firm or entity
during the final stage of training.
ARTICLE 64. Sponsoring of Apprenticeship Program. — Any of the apprenticeship
schemes recognized herein may be undertaken or sponsored by a single employer or firm
or by a group or association thereof or by a civic organization. Actual training of
apprentices may be undertaken:
(a) In the premises of the sponsoring employer in the case of individual
apprenticeship programs;
(b) In the premises of one or several designated firms in the case of programs
sponsored by a group or association of employers or by a civic organization; or
(c) In a Department of Labor and Employment training center or other public
training institution.
ARTICLE 65. Investigation of Violation of Apprenticeship Agreement. — Upon
complaint of any interested person or upon its own initiative, the appropriate agency of
the Department of Labor and Employment or its authorized representative shall
investigate any violation of an apprenticeship agreement pursuant to such rules and
regulations as may be prescribed by the Secretary of Labor and Employment.
ARTICLE 66. Appeal to the Secretary of Labor and Employment. — The decision of the
authorized agency of the Department of Labor and Employment may be appealed by any
aggrieved person to the Secretary of Labor and Employment within five (5) days from
receipt of the decision. The decision of the Secretary of Labor and Employment shall be
final and executory. ITAaHc
ARTICLE 67. Exhaustion of Administrative Remedies. — No person shall institute any
action for the enforcement of any apprenticeship agreement or damages for breach of any
such agreement, unless he has exhausted all available administrative remedies.
ARTICLE 68. Aptitude Testing of Applicants. — Consonant with the minimum
qualifications of apprentice-applicants required under this Chapter, employers or entities
with duly recognized apprenticeship programs shall have primary responsibility for
providing appropriate aptitude tests in the selection of apprentices. If they do not have
adequate facilities for the purpose, the Department of Labor and Employment shall
perform the service free of charge.
ARTICLE 69. Responsibility for Theoretical Instruction. — Supplementary theoretical
instruction to apprentices in cases where the program is undertaken in the plant may be
done by the employer. If the latter is not prepared to assume the responsibility, the same
may be delegated to an appropriate government agency.
ARTICLE 70. Voluntary Organization of Apprenticeship Programs; Exemptions. — (a)
The organization of apprenticeship program shall be primarily a voluntary undertaking
by employers;
(b) When national security or particular requirements of economic development so
demand, the President of the Philippines may require compulsory training of apprentices
in certain trades, occupations, jobs or employment levels where shortage of trained
manpower is deemed critical as determined by the Secretary of Labor and Employment.
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Appropriate rules in this connection shall be promulgated by the Secretary of Labor and
Employment as the need arises; and
(c) Where services of foreign technicians are utilized by private companies in
apprenticeable trades, said companies are required to set up appropriate apprenticeship
programs.
ARTICLE 71. Deductibility of Training Costs. — An additional deduction from taxable
income of one-half (1/2) of the value of labor training expenses incurred for developing
the productivity and efficiency of apprentices shall be granted to the person or enterprise
organizing an apprenticeship program: Provided, That such program is duly recognized
by the Department of Labor and Employment: Provided, further, That such deduction
shall not exceed ten (10%) percent of direct labor wage: and Provided, finally, That the
person or enterprise who wishes to avail himself or itself of this incentive should pay his
apprentices the minimum wage.
Omnibus Rules: Book II, Rules VI
RULE VI: Apprenticeship Training and Employment of Special Workers
SECTION 11. Qualifications of apprentices. — To qualify as apprentice, an applicant shall:
(a) Be at least fifteen years of age; provided those who are at least fifteen years of
age but less than eighteen may be eligible for apprenticeship only in non-hazardous
occupations;
(b) Be physically fit for the occupation in which he desires to be trained;
(c) Possess vocational aptitude and capacity for the particular occupation as
established through appropriate tests; and
(d) Possess the ability to comprehend and follow oral and written instructions.
aisadc
Trade and industry associations may, however, recommend to the Secretary of Labor and
Employment appropriate educational qualifications for apprentices in certain occupations.
Such qualifications, if approved, shall be the educational requirements for apprenticeship in
such occupations unless waived by an employer in favor of an applicant who has
demonstrated exceptional ability. A certification explaining briefly the ground for such
waiver, and signed by the person in charge of the program, shall be attached to the
apprenticeship agreement of the applicant concerned.
SECTION 12. Aptitude tests. — An employer who has a recognized apprenticeship program
shall provide aptitude tests to apprentice-applicants. However, if the employer does not
have adequate facilities, the Department of Labor and Employment may provide the service
free of charge.
SECTION 13. Physical fitness. — Total physical fitness need not be required of an
apprentice-applicant unless it is essential to the expeditious and effective learning of the
occupation. Only physical defects which constitute real impediments to effective
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performance as determined by the plant apprenticeship committee may disqualify an
applicant.
SECTION 14. Free physical examination. — Physical examination of apprentice-applicant
preparatory to employment shall be provided free of charge by the Department of Health or
any government hospital. If this is not feasible, the firm or entity screening the applicant
shall extend such service free of charge.
Any entity with an apprenticeship program may elect to assume the responsibility for
physical examination provided its facilities are adequate and all expenses are borne
exclusively by it.
SECTION 15. Apprenticeable trades. — The Bureau shall evaluate crafts and operative,
technical, nautical, commercial, clerical, technological, supervisory, service and managerial
activities which may be declared apprenticeable by the Secretary of Labor and Employment
and shall have exclusive jurisdiction to formulate model national apprenticeship standards
therefor.
SECTION 16. Model standards. — Model apprenticeship standards to be set by the Bureau
shall include the following:
(a) Those affecting employment of apprentices under different occupational
conditions;
(b) Those involving theoretical and proficiency tests for apprentices during their
training;
(c) Areas and duration of work and study covered by on-the-job training and
theoretical instructions of apprenticeable trades and occupations; and
(d) Those referring to the qualifications of trainers of apprentices.
SECTION 17. Participation in standards setting. — The Bureau may request any legitimate
worker's and employer's organizations, civic and professional groups, and other entities
whether public or private, to assist in the formulation of national apprenticeship standards.
SECTION 18. Contents of agreement. — Every apprenticeship agreement shall include the
following:
(a) The full names and addresses of the contracting parties;
(b) Date of birth of the apprentice;
(c) Name of the trade, occupation or job in which the apprentice will be trained and
the dates on which such training will begin and will approximately end;
(d) The approximate number of hours of on-the-job training as well as of
supplementary theoretical instructions which the apprentice shall undergo during his
training;
(e) A schedule of the work processes of the trade/occupation in which the apprentice
shall be trained and the approximate time to be spent on the job in each process;
(f) The graduated scale of wages to be paid the apprentice;
(g) The probationary period of the apprentice during which either party may
summarily terminate their agreement; and
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(h) A clause that if the employer is unable to fulfill his training obligation, he may
transfer the agreement, with the consent of the apprentice, to any other employer
who is willing to assume such obligation.
SECTION 19. Apprenticeship period. — The period of apprenticeship shall not exceed six
(6) months.
(a) Four hundred (400) hours or two (2) months for trades or occupations which
normally require a year or more for proficiency; and
(b) Two hundred (200) hours or one (1) month for occupations and jobs which
require more than three months but less than one year for proficiency.
At least five (5) working days before the actual date of termination, the party terminating
shall serve a written notice on the other, stating the reason for such decision and a copy of
said notice shall be furnished the Apprenticeship Division concerned.
SECTION 20. Hours of work. — Hours of work of the apprentice shall not exceed the
maximum number of hours of work prescribed by law, if any, for a worker of his age and
sex. Time spent in related theoretical instructions shall be considered as hours of work and
shall be reckoned jointly with on-the-job training time in computing in the agreement the
appropriate periods for giving wage increases to the apprentice.
An apprentice not otherwise barred by law from working eight hours a day may be
requested by his employer to work overtime and paid accordingly, provided there are no
available regular workers to do the job, and the overtime work thus rendered is duly
credited toward his training time. cda
SECTION 21. Previous training or experience. — A prospective apprentice who has
completed or otherwise attended a vocational course in a duly recognized trade or
vocational school or training center or who has had previous experience in the trade or
occupation in which he desires to be apprenticed shall be given due credit therefor.
Both practical and theoretical knowledge shall be evaluated and the credit shall appear in
the apprenticeship agreement which shall have the effect of shortening the training and
servicing as a basis for promoting him to a higher wage level. Such credit shall be expressed
in terms of hours.
SECTION 22. Parties to agreement. — Every apprenticeship agreement shall be signed by
the employer or his duly authorized representative and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf by his parent or
guardian, or if the latter is not available, by an authorized representative of the Department
of Labor and Employment.
SECTION 23. Bureau and Apprenticeship Division of Regional Office concerned to be
furnished copy of agreement. — The employer shall furnish a copy of the apprenticeship
agreement to the Bureau and Apprenticeship Division of Regional Office concerned and the
agency which shall provide related theoretical instructions if the employer is not the one
who will give such instructions. The copies shall be sent by the employer within five (5)
working days from the date of execution thereof. If the agreement is found defective and
serious damage would be sustained by either party if such defect is not corrected, the
Apprenticeship Division shall advise the employer within five (5) working days not to
implement the agreement pending amendment thereof. Other defects may be correlated
without suspending the effectivity of the agreement.
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SECTION 24. Enforcement of agreement. — No person shall institute any action for the
enforcement of any apprenticeship agreement or for damages for breach thereof, unless he
has exhausted all available administrative remedies. The plant apprenticeship committee
shall have initial responsibility for settling differences arising out of apprenticeship
agreements.
SECTION 25. Valid cause to terminate agreement. — Either party to an agreement may
terminate the same after the probationary period only for a valid cause. The following are
valid causes for termination:
By the employer — (a) Habitual absenteeism in on-the-job training and related theoretical
instructions;
(b) Willful disobedience of company rules or insubordination to lawful order of a superior;
(c) Poor physical condition, permanent disability or prolonged illness which incapacitates the
apprentice from working;
(d) Theft or malicious destruction of company property and/or equipment;
(e) Poor efficiency or performance on the job or in the classroom for a prolonged period
despite warnings duly given to the apprentice; and
(f) Engaging in violence or other forms of gross misconduct inside the employer's premises.
By the apprentice — (a) Substandard or deleterious working conditions within the employer's
premises:
(b) Repeated violations by the employer of the terms of the apprenticeship agreement;
(c) Cruel or inhuman treatment by the employer or his subordinates;
(d) Personal problems which in the opinion of the apprentice shall prevent him from a
satisfactory performance of his job; and
(e) Bad health or continuing illness.
SECTION 26. Procedure of termination. — The procedure for effecting termination shall
be embodied in appropriate instructions to be prepared by theBureau and approved by the
Secretary of Labor and Employment.
SECTION 27. Theoretical instructions by employer. — Related theoretical instructions to
apprentices may be undertaken by the employer himself if he has adequate facilities and
qualified instructors for the purpose. He shall indicate his intention to assume such
responsibility in the apprenticeship standard ofhis program. The course outline and the bio-
data of the instructors who will conduct the course shall conform with the standards set by
the Department.
SECTION 28. Ratio of theoretical instruction and on-the-job training. — The normal ratio
is one hundred (100) hours of theoretical instructions for every two thousand (2,000) hours
of practical or on-the-job training. Theoretical instructions time for occupations requiring
less than two thousand hours for proficiency shall be computed on the basis of such ratio.
cda
SECTION 29. Wages. — The wage rate of the apprentice shall start at seventy five (75%)
per cent of the statutory minimum wage for the first six (6) months; thereafter, he shall be
paid the full minimum wage, including the full cost of living allowance.
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SECTION 30. Tripartite apprenticeship committees. — The creation of a plant
apprenticeship committee for every apprenticeship program shall be necessary. The
Department of Labor and Employment shall encourage the organization of apprenticeship
committees at trade, industry or other levels. As much as possible these committees shall
consist of management, labor and government representatives.
SECTION 31. Non-tripartite committees. — Where tripartism is not feasible, the
apprenticeship committee may be composed of:
(a) Technical personnel in the plant, trade or industry concerned;
(b) Labor and management representatives.
Representatives of cooperative, civic and other groups may also participate in such
committees.
SECTION 32. Duties of apprenticeship committees. — An apprenticeship committee at any
level shall be responsible for the following duties:
(a) Act as liaison between the apprentice and the employees;
(b) Mediate and/or settle in the first instance differences between the employer and
the apprentices arising out of an apprenticeship agreement;
(c) Maintain a constant follow-up on the technical progress of the program and of
the apprentices in particular;
(d) Recommend to the Apprenticeship Division of the Regional Office concerned
the issuance of certificates of completion to apprentices.
SECTION 33. Creation of ad hoc advisory committees. — The Secretary of Labor and
Employment may create ad hoc committees consisting ofrepresentatives of management,
labor and government on the national, regional and local levels to advise and assist him in
the formulation of policy, promotion of apprenticeship and other matters he may deem
appropriate to refer to them.
SECTION 34. Use of training centers. — The Department may utilize the facilities and
services of the National Manpower and Youth Council, theDepartment of Education,
Culture and Sports and other public training institutions for the training of apprentices.
SECTION 35. Coordination of training activities. — The apprenticeship Division shall
coordinate with the above training centers all activities relating to apprenticeship. The
Bureau, through the Apprenticeship Division, shall provide technical guidance and advice
to the centers.
SECTION 36. Priority in use of training centers. — Priority in the use of training centers
shall be given to recognized apprenticeship programs in skills which are highly in demand
in specific regions or localities as determined through surveys. The Bureau shall
recommend to the Secretary of Labor and Employment the establishment of priorities based
on data supplied by the Bureau of Local Employment, Labor Statistics Service, the National
Manpower and Youth Council, and its own fundings. The Secretary of Labor and
Employment may, however, also act on the basis of petitions presented by qualified entities
which are willing to bear the costs of training.
SECTION 37. Issuance of certificates. — Upon completion of his training, the apprentice
shall be issued a certificate of completion of apprenticeship by the Apprenticeship Division
of the Regional Office concerned.
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SECTION 38. Certificate of meritorious service. — A certificate of meritorious service may
be awarded by the Secretary of Labor and Employment to apprenticeship committees or
other entities which have rendered outstanding service to the cause of apprenticeship.
SECTION 39. Certificate, evidence of skills. — A certificate of completion of apprenticeship
shall be evidence of the skills specified therein in accordance with national skills standards
established by the Department.
ARTICLE 72. Apprentices without Compensation. — The Secretary of Labor and
Employment may authorize the hiring of apprentices without compensation whose
training on the job is required by the school or training program curriculum or as
requisite for graduation or board examination.
Omnibus Rules: Book II, Rules VI
RULE VI: Apprenticeship Training and Employment of Special Workers
SECTION 40. Apprenticeship without compensation. — The Secretary of Labor and
Employment through the Apprenticeship Division, may authorize the hiring of apprentices
without compensation whose training on the job is required by the school curriculum as a
prerequisite for graduation or for taking a government board examination.
SECTION 41. Compulsory apprenticeship. — (a) When grave national emergencies,
particularly those involving the security of the state, arise or particular requirements of
economic development so demand, the Secretary of Labor and Employment may
recommend to the President of the Philippines the compulsory training of apprentices
required in a certain trades, occupations, jobs or employment levels where shortage of
trained manpower is deemed critical;
(b) Where services of foreign technicians are utilized by private companies in
apprenticeable trades said companies are required to set up appropriate apprenticeship
programs. cdt
SECTION 42. Certification from Apprenticeship Division. — An employer desiring to avail
of the tax deduction provided under the Code shall secure from the Apprenticeship Division
a certification that his apprenticeship program was operational during the taxable year
concerned. Such certification shall be attached to the employer's income tax returns for the
particular year. Guidelines for the issuance of such certification shall be prepared by the
Bureau and approved by the Secretary of Labor and Employment.
CHAPTER II
Learners
ARTICLE 73. Learners Defined. 64 — Learners are persons hired as trainees in semi-
skilled and other industrial occupations which are non-apprenticeable and which may be
learned through practical training on the job in a relatively short period of time which
shall not exceed three (3) months.
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(NOTE: Superseded by Sec. 4 of The TESDA Act, “learners” are persons
hired as trainees in semi-skilled and other industrial occupations which are
non-apprenticeable. Learnership programs must be approved by the Authority)
ARTICLE 74. When Learners may be Hired. — Learners may be employed when no
experienced workers are available, the employment of learners is necessary to prevent
curtailment of employment opportunities, and the employment does not create unfair
competition in terms of labor costs or impair or lower working standards.
ARTICLE 75. Learnership Agreement. — Any employer desiring to employ learners
shall enter into a learnership agreement with them, which agreement shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which shall not exceed three (3)
months;
(c) The wages or salary rates of the learners which shall begin at not less than
seventy-five percent (75%) of the applicable minimum wage; and
(d) A commitment to employ the learners if they so desire, as regular employees
upon completion of the learnership. All learners who have been allowed or
suffered to work during the first two (2) months shall be deemed regular
employees if training is terminated by the employer before the end of the
stipulated period through no fault of the learners.
The learnership agreement shall be subject to inspection by the Secretary of Labor and
Employment or his duly authorized representative.
ARTICLE 76. Learners in Piecework. — Learners employed in piece or incentive-rate
jobs during the training period shall be paid in full for the work done.
ARTICLE 77. Penalty Clause. — Any violation of this Chapter or its implementing rules
and regulations shall be subject to the general penalty clause provided for in this Code.
Omnibus Rules: Book II, Rules VI
RULE VII: Learners
SECTION 1. Definition of terms. —
(a) "Learner" is a person hired as a trainee in industrial occupations which are non-
apprenticeable and which may be learned through practical training on the job for a
period not exceeding three (3) months, whether or not such practical training is
supplemented by theoretical instructions.
(b) "Learnership agreement" refers to the employment and training contract entered into
between the employer and the learner.
SECTION 2. When learners may be employed. — Learners may be employed when no
experienced workers are available, the employment of learners being necessary to prevent
curtailment of employment opportunities, and such employment will not create unfair
competition in terms of labor costs nor impair working standards.
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SECTION 3. Approval of learnership program. — Any employer who intends to employ

learners shall submit in writing to the Apprenticeship Division ofthe Regional Office
concerned, copy furnished the Bureau, his learnership program, which the Division shall
evaluate to determine if the occupation involved is learnable and the program is sufficient
for the purpose of training. Within five (5) working days from receipt of the program, the
Division shall make known its decision to the employer concerned. A learnership
program shall be subject to periodic inspection by the Secretary of Labor and
Employment or his duly authorized representative.
SECTION 4. Contents of learnership agreement. — A learnership agreement, shall
include:
(a) The names and addresses of the employer and the learner;

(b) The occupation to be learned and the duration of the training period which shall
not exceed three (3) months;

(c) The wage of learner which shall be at least 75 percent of the applicable minimum
wage; and

(d) A commitment to employ the learner, if he so desires, as a regular employee

upon completion of training.

A learner who has worked during the first two months shall be deemed a regular employee
if training is terminated by the employer before the end of thestipulated period through no
fault of the learner.
SECTION 5. Parties to learnership agreement. — Every learnership agreement shall be
signed by the employer or his duly authorized agent and by thelearner. A learnership
agreement with a minor shall be signed by the learner with the conformity of his parent or
guardian.
The employer shall furnish a copy each of the learnership agreement to the learner, the
Bureau, and the Apprenticeship Division of the appropriate Regional Office within five (5)
working days following its execution by the parties.
SECTION 6. Employment of minors as learners. — A minor below fifteen (15) years of age
shall not be eligible for employment as a learner. Those below eighteen (18) years of age
may only be employed in non-hazardous occupations.
SECTION 7. Cancellation of learnership programs. — The Secretary of Labor and
Employment may cancel any learnership program if upon inquiry it is found that the
justification for the program no longer exists.

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R.A. 7686, The Dual Training System Act
AN ACT TO STRENGTHEN MANPOWER EDUCATION AND TRAINING IN
THE PHILIPPINES BY INSTITUTIONALIZING THE DUAL TRAINING
SYSTEM AS AN INSTRUCTIONAL DELIVERY SYSTEM OF TECHNICAL
AND VOCATIONAL EDUCATION AND TRAINING, PROVIDING THE
MECHANISM, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES
SECTION 1. Short title. — This Act shall be known as the "Dual Training System Act of
1994." cdtai
SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to
strengthen manpower education and training in the country so that the latter may be assured
of an ever growing supply of an educated and skilled manpower equipped with appropriate
skills and desirable work habits and attitudes. The Dual Training System, as successfully
tested in some highly developed countries, shall be adopted in duly accredited vocational
and technical schools, in cooperation with accredited agricultural, industrial and business
establishments, as one of the preferred means of creating a dependable pool of well-trained
operators, craftsmen and technicians for the economy.
SECTION 3. Objectives. — This Act shall have the following objectives:
a) encourage increasing utilization of the dual system in technical and vocational
education and training by both public and private schools within the context of
the existing education system; cdasia
b) encourage increasing levels of investment in technical and vocational
education and training by both public and private sectors specially in the rural
areas;
c) enhance the employability and productivity of graduates by equipping them
with analytical and creative thinking and problem-solving abilities; manipulative
competencies which meet occupational standards and requirements; values and
attitudes with emphasis on work ethics, quality orientation, discipline, honesty,
self-reliance and patriotism; and
d) strengthen training cooperation between agricultural, industrial and business
establishments and educational institutions by designing and implementing
relevant training programs in close coordination with concerned local government
units.
SECTION 4. Definition of Terms. — For purposes of this Act, the following terms shall
mean: casia
a) "Appropriate Authority" refers to the government entity in-charge of formal
technical and vocational education training.
b) "Dual Training System" refers to an instructional delivery system of technical
and vocational education and training that combines in-plant training and in-
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school training based on a training plan collaboratively designed and
implemented by an accredited dual system educational institution/training center
and accredited dual system agricultural, industrial and business establishments
with prior notice and advice to the local government unit concerned. Under this
system, said establishments and the educational institution share the responsibility
of providing the trainee with the best possible job qualifications, the former
essentially through practical training and the latter by securing an adequate level
of specific, general and occupation-related theoretical instruction. The word
"dual" refers to the two parties providing instruction: the concept "system" means
that the two instructing parties do not operate independently of one another, but
rather coordinate their efforts.
c) "Trainee" refers to a person qualified to undergo the dual training system for
the purpose of acquiring and developing job qualifications.
d) "Accredited Dual Training System Educational Institution/Training Center"
refers to a public or private institution duly recognized and authorized by the
appropriate authority, in coordination with the business and industry, to
participate in the dual training system. casia
e) "Establishments" refer to enterprises and/or services of agricultural, industrial,
or business establishments.
f) "Accredited Dual Training System Agricultural, Industrial and Business
Establishments" hereinafter referred to as agricultural, industrial and business
establishments, refer to a sole proprietorship, partnership, corporation or
cooperative which is duly recognized and authorized by the appropriate authority
to participate in the dual training system educational institution.
SECTION 5. Institutionalization of the Dual Training System. — The dual training system,
hereafter referred to as the System, is hereby institutionalized in the Philippines in
accordance with the provisions of this Act.
SECTION 6. Coverage. — This Act shall apply to all public and private educational
institutions/training centers and agricultural, industrial and business establishments duly
accredited to participate in dual training system. cda
SECTION 7. Planning and Coordination. — The appropriate authority shall plan, set
standards, coordinate, monitor, and allocate resources in support of the implementation of
the System.
Every accredited educational institution/training center shall establish an industrial
coordinating office which shall supervise the in-plant training: Provided, That, the
industrial establishment shall be required to furnish the educational institution with the
necessary information for the purpose of supervision.
The industrial coordinating office shall be headed by an industrial coordinator with, at least,
an officer level rank. The industrial coordinator may be assisted by such other personnel as
may be necessary for the effective discharge of the functions of the office. cdt
SECTION 8. Status of Trainee. — For the duration of the training under the System, the
trainee is to be considered not an employee of the business/industrial establishment but
78

rather a trainee of both the Accredited Dual Training System Educational Institution and the
agricultural, industrial and business establishments: Provided, That, the union or the
workers of the latter have been duly informed in advance of such an agreement.
A trainee who has successfully completed a training program in a particular agricultural,
industrial or business establishment shall be given priority of employment in that
agricultural, industrial or business establishment. The appropriate authority shall keep a roll
of these successful trainees for purposes of identifying them for employment.
SECTION 9. Incentives for Participating Establishments. — To encourage agricultural,
industrial and business establishments to participate in the System, they shall be allowed to
deduct from their taxable income the amount of fifty percent (50%) of the system expenses
paid to the Accredited Dual Training System Educational Institution for the establishment's
trainees: Provided, That such expenses shall not exceed five percent (5%) of their total
direct labor expenses but in no case to exceed Twenty-five million pesos (P25,000,000) a
year. cd i
Donations for the operation of the System shall be deductible from the taxable income of
the donors.
The Department of Finance shall issue the necessary rules and regulations for the purpose
of tax incentives provided herein.
SECTION 10. Obligations of Accredited Agricultural, Industrial and Business
Establishments. — The agricultural, industrial and business establishments shall:
a) ensure that the necessary abilities and knowledge for the trainee to achieve the
purpose of his training are imparted to him and shall provide such training
systematically in accordance with an approval training plan; cd i
b) appoint the training officer to implement the training plan;
c) make available, free of charge, the consumable materials and basic hand tools
and equipment necessary for his training;
d) allow the trainee to attend his in-school training and to sit for his examinations;
e) require the trainee to keep his report book up-to-date and inspect such books;
f) ensure that the trainee is encouraged to develop his personality and that he is
protected from physical or moral danger;
g) entrust to the trainee such jobs as are related to the purpose of his training and
are commensurate with his capabilities;
h) pay to the accredited educational institution/training center the daily allowance
of the trainee; and
i) allow the trainee the necessary time-off for his in-school training.
SECTION 11. Obligations of the Trainee. — A trainee shall exert every effort to acquire
the abilities and knowledge necessary for him to achieve the purpose of his training.
Towards this end, he shall: casia
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a) carefully perform the jobs entrusted to him as part of his training;
b) take part in training programs for which he has been granted time-off under
this Act;
c) follow the instruction given to him as part of his training by the training officer
or any other person entitled to give him such instructions;
d) observe rules of behavior in the training premises;
e) use tools, instruments, machines, and other equipment with due care;
f) not reveal any business nor trade secrets that have come to his knowledge in
the course of his training; and cdasia
g) keep his record books up-to-date.
SECTION 12. Obligations of the Accredited Educational Institutions/Training Centers. —
The educational institutions/training centers that have entered into a memorandum of
agreement with agricultural, industrial or business establishments to undertake training
shall:
a) design, implement, and evaluate jointly the training plan with the accredited
establishments;
b) provide specific, general, and occupation-related theoretical instruction;
c) appoint industrial coordinators to supervise the in-plant training;
d) pay the trainee his daily allowance; and cdtai
e) perform such other tasks and activities as may be necessary and in furtherance
of the objectives of the training.
SECTION 13. Non-diminution of Incentives. — Nothing in this Act shall be construed to
diminish or reduce any privilege already enjoyed by the parties concerned under existing
laws, decrees, or executive orders.
SECTION 14. Signing of Memorandum of Agreements by the Accredited Dual Training
System Agricultural, Industrial and Business Establishments, the Accredited Dual Training
System Educational Institution/Training Center, and the Trainee. — Before an individual
establishment begins with an accredited education institution/training center and the trainee
or his representative, the individual establishment shall provide the accredited educational
institution/training center and the trainee with a copy of the signed agreement. acd
The memorandum of agreement shall set forth, among others, the following:
a) the training plan;
b) the nature and objective of the training;
c) the commencement and duration of the training period, including the total
number of in-school and in-plant training hours;
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 Zabala 3D 2021

d) the normal daily training hours; thereon; and

e) the trainee's allowance and the rate to be applied, which in no case shall start
below seventy-five percent (75%) of the applicable minimum daily wage for days
spent in the establishments; aisa dc
f) the rights and obligations of the parties concerned in addition to those provided
in Sections 10, 11, and 12;
c) that they are not available locally in sufficient quantity of comparable quality,
and at reasonable prices;
Provided, however, That taxes and duties pertaining to the importations of
accredited government and dual training educational institutions are deemed
automatically appropriated.

g) the definition of the status of the trainee according to Section 8 of this Act; The Department of Finance shall formulate the necessary rules and regulations to
implement the provisions of this section. cd
h) the conditions for the termination of the training agreement;
SECTION 19. Appropriations. — For this initial implementation of this Act, an amount of
i) the performance, monitoring and evaluation system; and One million pesos (P1,000,000) shall be charged against the current year's appropriation of
the contingency fund. Thereafter, such sums as may be necessary for its continued
j) such other essential particulars as would mutually benefit all parties concerned.
implementation shall be included in the annual General Appropriations Act.
SECTION 15. Insurance Coverage of the Trainee. — Every agricultural, industrial and
SECTION 20. Separability Clause. — If for any reason any provision of this Act is
business establishment undertaking training, in accordance with the provisions of this Act,
declared invalid or unconstitutional, the rest shall not be affected thereby.
shall sign a life and/or accident insurance policy on the life of the trainee with the insured
and the spouse, children or parents of the trainee as the beneficiaries thereof: Provided, SECTION 21. Repealing Clause. — All laws, decrees, orders, rules and regulations or parts
That, the agricultural, industrial and business establishments shall pay for the premiums of thereof inconsistent with this Act are hereby repealed or modified accordingly.
said insurance policy. acd
SECTION 22. Effectivity. — This Act shall take effect after completion of its publication in
SECTION 16. Revolving Fund. — Any law, rule or regulation to the contrary the Official Gazette or in two (2) newspapers of general circulation. aisa dc
notwithstanding, the Accredited Dual Training System Educational Institution/Training
Center is hereby authorized to retain as a revolving fund, the amount paid to it by the Approved: February 25, 1994
agricultural, industrial and business establishments representing the actual dual training
expenses. The fund shall be used to improve the operation of the dual training system. Published in Malaya and the Philippine Times Journal on March 3, 1994.
Published in the Official Gazette, Vol. 90 No. 20 page 2710 on May 16, 1994.
SECTION 17. Implementing Rules. — The appropriate authority and the Department of
Finance, upon prior consultation with the business and industry concerned, shall issue the
necessary rules and regulations for the effective implementation of this Act within a period
of ninety (90) days after its effectivity. Any violation of this Section shall render the
concerned officials/liable under R.A. No. 6713, otherwise known as the "Code of Conduct
and Ethical Standards for Public Officials and Employees" and other existing administrative
and/or criminal laws.

SECTION 18. Other Exemption from Taxes and Duties. — Any donation, contribution,
bequest, subsidy, or financial aid which may be made for the operation of the System shall
constitute as allowable deduction from the income of the donors for income tax purposes
and shall be exempt from donor's tax, subject to such conditions as provided under the
National Internal Revenue Code, as amended. Essential equipment, apparatus and materials
imported by accredited dual training private educational institutions shall be exempt from
taxes and duties: Provided, That, the importation of these items shall be subject to the
following qualifications:

a) that the importation shall be certified by the appropriate authority;

b) that they should be actually, directly, and exclusively used in connection with
the dual training system and any unauthorized use shall subject the accredited
dual training private educational institutions to payment of taxes and duties due

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C. EMPLOYMENT OF ALIENS
Labor Code: Articles 40-42 Omnibus Rules: Book I, Rule XIV
TITLE II
Employment of Non-Resident Aliens
ARTICLE 40. Employment Permit of Non-Resident Aliens. — Any alien seeking
admission to the Philippines for employment purposes and any domestic or foreign
employer who desires to engage an alien for employment in the Philippines shall obtain
an employment permit from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the applicant
employer after a determination of the non-availability of a person in the Philippines who
is competent, able and willing at the time of application to perform the services for which
the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit
may be issued upon recommendation of the government agency charged with the
supervision of said registered enterprise.
RULE XIV
Employment of Aliens
SECTION 1. Coverage. — This Rule shall apply to all aliens employed or seeking
employment in the Philippines, and their present or prospective employers.
SECTION 3. Registration of resident aliens. — All employed resident aliens shall register
with the Bureau under such guidelines as may be issued by it.
SECTION 4. Employment permit required for entry. — No alien seeking employment,
whether on resident or non-resident status, may enter the Philippines without first securing
an employment permit from the Department of Labor and Employment. If an alien enters
the country under a non-working visa and wishes to be employed thereafter, he may only be
allowed to be employed upon presentation of a duly approved employment permit.
SECTION 5. Requirements for employment permit application. — The application for an
employment permit shall be accompanied by the following:
(a) Curriculum vitae duly signed by the applicant indicating his educational
background, his work experience and other data showing that he possesses high
technical skills in his trade or profession;
(b) Contract of employment between the employer and the principal which shall
embody the following, among others;
(1) That the non-resident alien worker shall comply with all applicable
laws and rules and regulations of the Philippines;
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(2) That the non-resident alien worker and the employer shall bind
themselves to train at least two (2) Filipino understudies for a period to be
determined by the Secretary of Labor and Employment; and
(3) That he shall not engage in any gainful employment other than that for
which he was issued a permit.
(c) A designation by the employer of at least two (2) understudies for every alien
worker. Such understudies must be the most ranking regular employees in the
section or department for which the expatriates are being hired to ensure the actual
transfer of technology.
SECTION 6. Issuances of employment permit. — The Secretary of Labor and Employment
may issue an employment permit to the applicant based on:
a) Compliance by the applicant and his employer with the requirements of Section 2
hereof;
b) Report of the Bureau Director as to the availability or non-availability of any
person in the Philippines who is competent, able, and willing to do the job for which
the services of the applicant are desired;
c) His assessment as to whether or not the employment of the applicant will redound
to the national interest;
d) Admissibility of the alien as certified by the Commission on Immigration and
Deportation;
e) The recommendation of the Board of Investments or other appropriate
government agencies if the applicant will be employed in preferred areas of
investments or in accordance with imperatives of economic developments; and
f) Payments of a P100.00 fee.
SECTION 7. Duration of employment permit. — Subject to renewal upon showing of good
cause, the employment permit shall be valid for a minimum period of one (1) year starting
from the date of its issuance unless sooner revoked by the Secretary of Labor and
Employment for violation of any provisions of the Code or of these Rules.
SECTION 8. Advice to Commission on Immigration and Deportation. — The Bureau shall
advice the Commission on Immigration and Deportation on the issuance of an employment
permit to an applicant.
SECTION 9. Understudy Training Program. — The employer shall submit a training
program for his understudies to the Bureau within thirty (30) days upon arrival of the alien
workers. The supervision of the training program shall be the responsibility of the Bureau
and shall be in accordance with standards established by the Secretary of Labor and
Employment.
ARTICLE 41. Prohibition against Transfer of Employment. — (a) After the issuance of
an employment permit, the alien shall not transfer to another job or change his employer
without prior approval of the Secretary of Labor.
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(b) Any non-resident alien who shall take up employment in violation of the provision of
this Title and its implementing rules and regulations shall be punished in accordance with
the provisions of Articles 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to deportation after service of his sentence.
ARTICLE 42. Submission of List. — Any employer employing non-resident foreign
nationals on the effective date of this Code shall submit a list of such nationals to the
Secretary of Labor within thirty (30) days after such date indicating their names,
citizenship, foreign and local addresses, nature of employment and status of stay in the
country. The Secretary of Labor shall then determine if they are entitled to an
employment permit.
SECTION 2. Submission of list. — All employers employing foreign nationals, whether
resident or non-resident shall submit a list of such nationals to the Bureau indicating their
names, citizenship, foreign and local addresses; nature of employment and status of stay in
the Philippines.
PRE-EMPLOYMENT
R.A. 8042, Migrant Workers and Overseas Filipino Act, as amended by R.A. 10022
Implementing Rules, Migrant Workers and Overseas Filipino Act
AN ACT TO INSTITUTE THE POLICIES OF OVERSEAS EMPLOYMENT AND
ESTABLISH A HIGHER STANDARD OF PROTECTION AND PROMOTION OF
THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS
FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES
SECTION 1. Short Title. — This Act shall be known and cited as the "Migrant
Workers and Overseas Filipinos Act of 1995."
SECTION 2. Declaration of Policies. —
(a) In the pursuit of an independent foreign policy and while considering national
sovereignty, territorial integrity, national interest and the right to self-determination
paramount in its relations with other states, the State shall, at all times, uphold the
dignity of its citizens whether in country or overseas, in general, and Filipino migrant
workers, in particular.
(b) The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities
for all. Towards this end, the State shall provide adequate and timely social, economic
and legal services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the
national economy through their foreign exchange remittances, the State does not
promote overseas employment as a means to sustain economic growth and achieve
national development. The existence of the overseas employment program rests solely
on the assurance that the dignity and fundamental human rights and freedoms of the
Filipino citizen shall not, at any time, be compromised or violated. The State, therefore,
shall continuously create local employment opportunities and promote the equitable
distribution of wealth and the benefits of development.
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(d) The State affirms the fundamental equality before the law of women and men and the
significant role of women in nation-building. Recognizing the contribution of overseas
migrant women workers and their particular vulnerabilities, the State shall apply gender
sensitive criteria in the formulation and implementation of policies and programs
affecting migrant workers and the composition of bodies tasked for the welfare of
migrant workers.
(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall
not be denied to any person by reason of poverty. In this regard, it is imperative that an
effective mechanism be instituted to ensure that the rights and interest of distressed
overseas Filipinos, in general, and Filipino migrant workers, in particular, documented or
undocumented, are adequately protected and safeguarded.
(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the
democratic decision-making processes of the State and to be represented in institutions
relevant to overseas employment is recognized and guaranteed.
(g) The State recognizes that the ultimate protection to all migrant workers is the
possession of skills. Pursuant to this and as soon as practicable, the government shall
deploy and/or allow the deployment only of skilled Filipino workers.
(h) Non-governmental organizations, duly recognized as legitimate, are partners of the
State in the protection of Filipino migrant workers and in the promotion of their welfare.
The State shall cooperate with them in a spirit of trust and mutual respect.
(i) Government fees and other administrative costs of recruitment, introduction,
placement and assistance to migrant workers shall be rendered free without prejudice to
the provision of Section 36 hereof.
Nonetheless, the deployment of Filipino overseas workers, whether land-based or sea-
based, by local service contractors and manning agencies employing them shall be
encouraged. Appropriate incentives may be extended to them.
OMNIBUS RULES AND REGULATIONS IMPLEMENTING THE MIGRANT
WORKERS AND OVERSEAS FILIPINOS ACT OF 1995
Note: these are just the provisions not found in the Statute.
Section 1. (c) While recognizing the significant contribution of Filipino migrant workers to
the national economy through their foreign exchange remittances, the State does not
promote overseas employment as a means to sustain economic growth and achieve national
development. The existence of the overseas employment program rests solely on the
assurance that the dignity and fundamental human rights and freedoms of the Filipino
citizens shall not, at any time, be compromised or violated. The State, therefore, shall
continuously create local employment opportunities and promote the equitable distribution
of wealth and the benefits of development.
SECTION 3. Definitions. — For purposes of this Act:
(a) "Migrant worker" refers to a person who is to be engaged, is engaged or has been
engaged in a remunerated activity in a state of which he or she is not a legal resident; to
be used interchangeably with overseas Filipino worker.
(b) "Gender-sensitivity" shall mean cognizance of the inequalities and inequities
prevalent in society between women and men and a commitment to address issues with
concern for the respective interests of the sexes.
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(j) Skilled Workers — those who have obtained an academic degree or sufficient training or
(c) "Overseas Filipinos" refers to dependents of migrant workers and other Filipino
experience in the job for which they are applying, as may be determined by the Secretary of
nationals abroad who are in distress as mentioned in Sections 24 and 26 of this Act.
Labor and Employment.
II. Definitions of Terms (I deleted those which are of common knowledge, like acronyms of (k) Underage Migrant Workers — those who are below 18 years or below the minimum age
departments) requirement for overseas employment as determined by the Secretary of Labor and
Employment.
SECTION 2. Definitions. —
(l) Employment Agency — any person, partnership or corporation duly licensed by the
(a) Migrant Worker or Overseas Filipino Workers  — a person who is to be engaged, is
Secretary of Labor and Employment to engage in the recruitment and placement of workers
engaged, or has been engaged in a remunerated activity in a state of which he or she is not a
for overseas employment for a fee which is charged, directly or indirectly, from the workers
legal resident. A person "to be engaged in a remunerated activity" refers to an applicant
or employers or both.
worker who has been promised or assured employment overseas and acting on such promise
or assurance sustains damage and/or injury. (m) Manning Agency — any person, partnership or corporation duly licensed by the
Secretary of Labor and Employment to engage in the recruitment and placement of
(b) Overseas Filipino — are migrant workers, other Filipino nationals and their dependents
seafarers for vessels plying international waters and for related maritime activities.
abroad.
(n) Service Contractor — any person, partnership or corporation duly licensed by the
(c) Overseas Filipino in distress — Overseas Filipinos as defined in Section 3(c) of
Secretary of Labor and Employment to recruit workers for its accredited projects or
the Act shall be deemed in distress in cases where they have valid medical, psychological or
contracts overseas.
legal assistance problems requiring treatment, hospitalization, counseling, legal
representation as specified in Sections 24 and 26 or any other kind of intervention with the (p) Act — the "Migrant Workers and Overseas Filipinos Act of 1995," to be used
authorities in the country where they are found. interchangeably with the "R.A. 8042."
(d) Legal Resident — a person who has obtained permanent residency status in accordance (s) POEA — the Philippine Overseas Employment Administration.
with the law of the host country. (t) OWWA — the Overseas Workers Welfare Administration.
(e) Documented Migrant Workers — (u) NLRC — the National Labor Relations Commission.
(1) those who possess valid passports and visas or permits to stay in the host (v) BLE — the Bureau of Local Employment.
country and whose contracts of employment have been processed by the POEA if
required by law or regulation; or (w) TESDA — the Technical Education and Skills Development Authority.
(2) those registered by the Migrant Workers and Other Overseas Filipinos
Resource Center or by the Embassy.
Those who do not fall under the preceding paragraph are considered undocumented
migrants workers.
(f) Undocumented Filipinos —
1. Those who acquired their passports through fraud or misrepresentation;
2. Those who possess expired visas or permits to stay;
3. Those who have no travel document whatsoever; and
4. Those who have valid but inappropriate visas.
(g) Gender Sensitivity — cognizance of the inequalities and inequities prevalent in society
between women and men and a commitment to address issues with concern for the
respective interest of the sexes.
(h) Legal Assistance — includes, in appropriate cases, giving legal advice, active
participation in litigations whenever allowed by local laws, hiring of private lawyers,
documentation assistance, payment of bail bonds, court fees and other litigation expenses.
(i) Bonafide Non-Government Organizations (NGOs) — non-governmental organizations
duly registered with appropriate Philippine government agencies which are active partners
of the Philippine Government in the protection of Filipino migrant workers and the
promotion of their welfare.

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I. Deployment
SECTION 4. Deployment of Migrant Workers. — The State shall deploy overseas
Filipino workers only in countries where the rights of Filipino migrant workers are
protected. The government recognizes any of the following as a guarantee on the part of
the receiving country for the protection and the rights of overseas Filipino workers:
(a) It has existing labor and social laws protecting the rights of migrant workers;
(b) It is a signatory to multilateral conventions, declarations or resolutions relating
to the protection of migrant workers;
(c) It has concluded a bilateral agreement or arrangement with the government
protecting the rights of overseas Filipino workers; and
(d) It is taking positive, concrete measures to protect the rights of migrant
workers.
SECTION 5. Termination or Ban on Deployment. — Notwithstanding the provisions
of Section 4 hereof, the government, in pursuit of the national interest or when public
welfare so requires, may, at any time, terminate or impose a ban on the deployment of
migrant workers.
III. Deployment
SECTION 3. Guarantee of Migrant Workers Rights. — The Secretary of Labor and
Employment shall deploy or allow the deployment of Filipino migrant workers only in
countries where their rights are protected, recognizing any of the following as a guarantee
for the protection of the rights of migrant workers:
(a) The country has existing labor and social laws protecting the rights of migrant
workers;
(b) The country is a signatory to multilateral conventions, declarations or
resolutions relating to the protection of migrant workers;
(c) The country has concluded a bilateral agreement or arrangement with the
Philippine Government on the protection of the rights of Overseas Filipino
Workers; and
(d) The host country is taking positive, concrete measures to protect the rights
of migrant workers.
The POEA shall process overseas employment contracts only for countries meeting any of
the above criteria, as determined by the Secretary of Labor and Employment.
SECTION 4. Deployment of Skilled Workers. — As soon as adequate mechanisms for
determination of skills are in place and consistent with national interest, the Secretary of
Labor and Employment shall allow the deployment only of skilled Filipino workers.
SECTION 6. Travel Advisory. — The DFA through the POEA shall issue travel advisories
or disseminate information on labor and employment conditions, migration realities and
other facts, as well as adherence of particular countries to international standards on human
and workers rights which will adequately prepare individuals into making informed and
intelligent decisions about overseas employment. The POEA shall publish, at least once a
month, such advisory in a newspaper of general circulation.
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The POEA may undertake other programs or resort to other modes of information and
dissemination campaign, such as the conduct of nationwide, comprehensive and sustainable
Pre-Employment Orientation Seminars.
IV. Regulation of Private Sector Participation
SECTION 7. Role of POEA. — Subject to deregulation and phase-out as provided under
Section 29 and 30 of the Act, the POEA shall continue to regulate private sector
participation in the recruitment and overseas placement of workers through its licensing and
registration system pursuant to its Rules and Regulations on Overseas Employment.
POEA shall formulate and implement, in coordination with appropriate entities concerned
when necessary, a system for promoting and monitoring the overseas employment of
Filipino workers taking into consideration their welfare and the domestic manpower
requirements. The POEA shall come up with a package of incentives for deserving manning
agencies and service contractors, along with the policy that the deployment workers by such
entities shall be encouraged.
V. Fees and Other Costs
SECTION 8. Government Fees and Administrative Costs. — All fees for services being
charged by any government office on migrant workers as of 7 June 1995 shall not be
increased. All other services rendered by the DOLE and other government agencies in
connection with the recruitment, introduction and placement of and assistance to migrant
workers shall be rendered free. The administrative cost thereof shall not be borne by the
worker.
The migrant workers are exempt from the payment of travel tax and airport fee upon proper
showing of Overseas Employment Certificate issued by the POEA.
II. Illegal Recruitment
SECTION 6. Definition. — For purposes of this Act, illegal recruitment shall mean
any act of canvassing, enlisting, contracting, transporting, utilizing, 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 contemplated under Article 13(f) of Presidential Decree No. 442,
as amended, otherwise known as the Labor Code of the Philippines: Provided, That any
such non-licensee or non-holder 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 following acts, whether committed by any person, whether a non-licensee,
non-holder, licensee or holder of authority:
(a) To charge or accept directly or indirectly any amount greater than that specified in
the schedule of allowable fees prescribed by the Secretary of Labor and Employment, or
to make a worker pay any amount greater than that actually received by him as a loan or
advance;
(b) To furnish or publish any false notice or information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor
Code;
(d) To induce or attempt to induce a worker already employed to quit his employment in
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order to offer him another unless the transfer is designed to liberate a worker from
oppressive terms and conditions of employment;
(e) To influence or attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health
or morality or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and
Employment or by his duly authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures and such other
matters or information as may be required by the Secretary of Labor and
Employment; cdt
(i) To substitute or alter to the prejudice of the worker, employment contracts approved
and verified by the Department of Labor and Employment from the time of actual
signing thereof by the parties up to and including the period of the expiration of the same
without the approval of the Department of Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or
member of the Board of any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under the Labor
Code and its implementing rules and regulations;
(l) Failure to actually deploy without valid reason as determined by the Department of
Labor and Employment; and
(m) Failure to reimburse expenses 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 worker's fault. Illegal recruitment
when committed by a syndicate or in large scale shall be considered an offense involving
economic sabotage.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three
(3) or more persons conspiring or confederating with one another. It is deemed
committed in large scale if committed against three (3) or more persons individually or
as a group.
The persons criminally liable for the above offenses are the principals, accomplices and
accessories. In case of juridical persons, the officers having control, management or
direction of their business shall be liable.
SECTION 7. Penalties. —
(a) Any person found guilty of illegal recruitment shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day but not more than twelve (12)
years and a fine of not less than Two hundred thousand pesos (P200,000.00) nor more
than Five hundred thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not less than Five hundred thousand
pesos (P500,000.00) nor more than One million pesos (P1,000,000.00) shall be imposed
if illegal recruitment constitutes economic sabotage as defined herein.
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Provided, however, That the maximum penalty shall be imposed if the person illegally
recruited is less than eighteen (18) years of age or committed by a non-licensee or non-
holder of authority.
SECTION 8. Prohibition on Officials and Employees. — It shall be unlawful for any
official or employee of the Department of Labor and Employment, the Philippine
Overseas Employment Administration (POEA), or the Overseas Workers Welfare
Administration (OWWA), or the Department of Foreign Affairs, or other government
agencies involved in the implementation of this Act, or their relatives within the fourth
civil degree of consanguinity or affinity, to engage, directly or indirectly, in the business
of recruiting migrant workers as defined in this Act. The penalties provided in the
immediate preceding paragraph shall be imposed upon them.
SECTION 9. Venue. — A 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 time of the
commission of the offense: Provided, That the court where the criminal action is first
filed shall acquire jurisdiction to the exclusion of other courts: Provided, however, That
the aforestated provisions shall also apply to those criminal actions that have already
been filed in court at the time of the effectivity of this Act.
SECTION 10. Monetary Claims. — Notwithstanding any provision of law to the
contrary, the Labor Arbiters of the National Labor Relations Commission (NLRC) shall
have the original and exclusive jurisdiction to hear and decide, within ninety (90)
calendar days after the 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.
The liability of the principal/employer and the recruitment/placement agency for any and
all claims under this section shall be joint and several. This provision shall be
incorporated in the contract for overseas employment and shall be a condition precedent
for its approval. The performance bond to be filed by the recruitment/placement agency,
as provided by law, shall be answerable for all monetary claims or damages that may be
awarded to the workers. If the recruitment/placement 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.
Such 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.
Any compromise/amicable settlement or voluntary agreement on monetary claims
inclusive of damages under this section shall be paid within four (4) months from the
approval of the settlement by the appropriate authority.
In case of termination of overseas employment without just, valid or authorized cause as
defined by law or contract, the worker shall be entitled to the full reimbursement of his
placement fee with interest at twelve percent (12%) per annum, plus his salaries for the
unexpired portion of his employment contract or for three (3) months for every year of
the unexpired term, whichever is less.
Noncompliance with the mandatory periods for resolutions of cases provided under this
section shall subject the responsible officials to any or all of the following penalties:
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(a) The salary of any such official who fails to render his decision or resolution within
the prescribed period shall be, or caused to be, withheld until the said official complies
therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualification to hold any appointive public office
for five (5) years.
Provided, however, That the penalties herein provided shall be without prejudice to any
liability which any such official may have incurred under other existing laws or rules and
regulations as a consequence of violating the provisions of this paragraph. c
SECTION 11. Mandatory Periods for Resolution of Illegal Recruitment Cases. —
The preliminary investigations of cases under this Act shall be terminated within a
period of thirty (30) calendar days from the date of their filing. Where the preliminary
investigation is conducted by a prosecution officer and a prima facie case is established,
the corresponding information shall be filed in court within twenty-four (24) hours from
the termination of the investigation. If the preliminary investigation is conducted by a
judge and a prima facie case is found to exist, the corresponding information shall be
filed by the proper prosecution officer within forty-eight (48) hours from the date of
receipt of the records of the case.
SECTION 12. Prescriptive Periods. — Illegal recruitment cases under this Act shall
prescribe in five (5) years: Provided, however, That illegal recruitment cases involving
economic sabotage as defined herein shall prescribe in twenty (20) years.
SECTION 13. Free Legal Assistance; Preferential Entitlement Under the Witness
Protection Program. — A mechanism for free legal assistance for victims of illegal
recruitment shall be established within the Department of Labor and Employment
including its regional offices. Such mechanism must include coordination and
cooperation with the Department of Justice, the Integrated Bar of the Philippines, and
other non-governmental organizations and volunteer groups. cd
The provisions of Republic Act No. 6981 to the contrary notwithstanding, any person
who is a victim of illegal recruitment shall be entitled to the Witness Protection Program
provided thereunder.
VI. Illegal Recruitment
SECTION 10. Crime Involving Economic Sabotage. — Illegal recruitment when
committed by a syndicate or in large scale shall be considered an offense involving
economic sabotage. Illegal recruitment is deemed committed by a syndicate if carried out by
a group of three (3) or more persons conspiring or confederating with one another. It is
deemed committed in large scale if committed against three (3) or more persons
individually or as a group.
SECTION 11. Persons Responsible. — The persons criminally liable for the above
offenses are the principals, accomplices and accessories. In case of juridical persons, the
officers having control, management or direction of their business shall be liable.
SECTION 12. Independent Administrative Action. — The institution of the criminal
action is without prejudice to any administrative action against the licensee or holder of
authority cognizable by the POEA which could proceed independently of the criminal
action.
VII. Prohibition on Government Personnel
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SECTION 13. Disqualification. — The following personnel shall be prohibited from
engaging directly or indirectly in the business of recruitment of migrant workers:
(a) Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ and other
government agencies involved in the implementation of this Act, regardless of the status of
his/her employment; and
(b) Any of his/her relatives within the fourth civil degree of consanguinity or affinity.
Any government official or employee found to be violating this Section shall be charged
administratively, according to Civil Service Rules and Regulations without prejudice to
criminal prosecution. The government agency concerned shall monitor and initiate, upon its
initiative or upon the petition of any private individual, action against erring officials and
employees, and/or their relatives.
VIII. Anti-Illegal Recruitment Programs
SECTION 14. POEA Programs. — The POEA shall adopt policies and procedures,
prepare and implement programs toward the eradication of illegal recruitment activities
such as, but not limited to the following:
(a) Providing legal assistance to victims of illegal recruitment and related cases
which are administrative or criminal in nature;
(b) Prosecution of illegal recruiters; 
(c) Special operations such as surveillance of persons and entities suspected to be
engaged in illegal recruitment; and
(d) Information and education campaign.
Whenever necessary, the POEA shall coordinate with other appropriate entities in the
implementation of said programs.
SECTION 15. Legal Assistance. — The POEA shall provide free legal service to victims
of illegal recruitment and related cases which are administrative or criminal in nature in the
form of legal advice, assistance in the preparation of complaints and supporting documents,
institution of criminal actions and whenever necessary, provide counseling assistance
during preliminary investigation and hearings.
SECTION 16. Receiving of Complaints for Illegal Recruitment. — Victims of illegal
recruitment and related cases which are administrative or criminal in nature may file with
the POEA a report or complaint in writing and under oath for assistance purposes.
In regions outside the National Capital Region, complaints and reports involving illegal
recruitment may be filed with the appropriate regional office of the POEA or DOLE.
SECTION 17. Action on the Complaint/Report. — Where the complaint/Report alleges
that illegal recruitment activities are on-going, surveillance shall be conducted and if such
activities are confirmed, issuance of closure order may be recommended to the POEA
Administrator through the Director of the Licensing and Regulation Office (Director-LRO).
If sufficient basis for criminal action is found, the case shall be immediately forwarded to
the appropriate office for such action.
SECTION 18. Surveillance. — The POEA and/or designated official in the DOLE
regional offices may on his own initiative conduct surveillance on the alleged illegal
recruitment activities.
Within two (2) days from the termination of surveillance, a report supported by an affidavit,
shall be submitted to the Director-LRO or the Regional Director concerned, as the case may
be.
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SECTION 19. Issuance of Closure Order. — The Secretary of Labor and Employment or
the POEA Administrator or the DOLE Regional Director of the appropriate regional office
outside the National Capital Region, or their duly authorized representatives, may conduct
an ex parte preliminary examination to determine whether the activities of a non-licensee
constitute a danger to national security and public order or will lead to further exploitation
of job seekers. For this purpose, the Secretary of Labor and Employment, the POEA
Administrator or the Regional Director concerned or their duly authorized representatives,
may examine personally the complainants and/or their witnesses in the form of searching
questions and answers and shall take their testimony under oath. The testimony of the
complainants and/or witnesses shall be reduced in writing and signed by them.
If upon the preliminary examination or surveillance, the Secretary of Labor and
Employment, the POEA Administrator or DOLE Regional Director is satisfied that such
danger or exploitation exists, a written order may be issued for the closure of the
establishment being used for illegal recruitment activity.
In case of a business establishment whose license or permit to operate a business was issued
by the local government, the Secretary of Labor and Employment, the POEA Administrator
or the Regional Director concerned shall likewise recommend to the granting authority the
immediate cancellation/revocation of the license or permit to operate its business.
SECTION 20. Implementation of Closure Order. — Closure order shall be served upon
the offender or the person in charge of the establishment subject thereof. The closure shall
be effected by sealing the establishment and posting a notice of such closure in bold letters
at a conspicuous place in the premises of the establishment. Whenever necessary, the
assistance and support of the appropriate law enforcement agencies may be requested for
this purpose.
SECTION 21. Report on Implementation. — A report on the implementation of the
closure order executed under oath, stating the details of the proceedings undertaken shall be
submitted to the Director-LRO or the Regional Director concerned, as the case may be,
within two (2) days from the date of implementation.
SECTION 22. Institution of Criminal Action. — The Secretary of Labor and
Employment, the POEA Administrator or the Regional Director concerned, or their duly
authorized representatives, or any aggrieved person, may initiate the corresponding criminal
action with the appropriate office. Where a complaint is filed with the POEA and the same
is proper for preliminary investigation, it shall file the corresponding complaint with the
appropriate officer, with the supporting documents.
SECTION 23. Motion to Lift a Closure Order. — A motion to lift a closure order which
has already been implemented may be entertained only when filed with the Licensing and
Regulation Office (LRO) within ten (10) calendar days from the date of implementation
thereof. The motion shall clearly state the grounds upon which it is based, attaching thereto
the documents in support thereof. A motion to lift which does not conform with the
requirements herein set forth be denied outrightly.
SECTION 24. Who May File. — The motion to lift a closure order may be filed only by
the following:
(a) The owner of the buildings or his/her duly authorized representatives;
(b) The building administrator or his/her duly authorized representatives;
(c) The person or entity against whom the closure order was issued and implemented
or the duly authorized representatives; or
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(d) Any other person or entity legitimately operating within the premises
closed/padlocked whose operations/activities are distinct from the recruitment
activities of the person/entity subject of the closure order.
SECTION 25. Grounds for Lifting/Re-Opening. — Lifting of the closure order and/or re-
opening of the office closed or padlocked may be granted on any of the following grounds:
(a) That the office is not the subject of the closure order;
(b) That the contract of lease with the owner of the building or the building
administrator has already been cancelled or terminated. The request to re-open
shall be duly supported by an affidavit of undertaking either of the owner of the
building or the building administrator that the same will not be leased/rented to
any other person/entity for recruitment purposes without the necessary license
from the POEA;
(c) That the office is shared by a person/entity not involved in illegal recruitment
activities, whether directly or indirectly; or
(d) Any other ground that the POEA may consider as valid and meritorious.
Lifting of a closure order is without prejudice to the filing of a criminal complaint with the
appropriate office against the person alleged to have conducted illegal recruitment activities.
SECTION 26. Appeal. — The order of the POEA Administrator denying the motion to lift
may be appealed to the Secretary of Labor and Employment within ten (10) days from
service or receipt thereof.
SECTION 27. Re-Padlocking of Office. — Where a re-opened office was subsequently
confirmed to be used for illegal recruitment activities, a new closure order shall be issued
which shall not be subject to a motion to lift.
IX. Pre-Employment and Disciplinary Action Cases
SECTION 28. Jurisdiction of the POEA. — The POEA shall exercise original and
exclusive jurisdiction and to hear and decide:
(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 entities; and
(b) disciplinary action cases and other special cases, which are administrative in
character, involving employers, principals, contracting partners and Filipino
migrant workers.
SECTION 29. Venue. — The cases mentioned in Section 28(a) of this Rule, may be filed
with the POEA Adjudication Office or the DOLE/POEA regional office of the place where
the complainant applied or was recruited, at the option of the complainant. The office with
which the complaint was first filed shall take cognizance of the case.
Disciplinary action cases and other special cases, as mentioned in the preceding Section,
shall be filed with the POEA Adjudication Office.
III. Services (This will be repeated under repatriation. You can delete this or the one I
will reproduce later)
SECTION 14. Travel Advisory/Information Dissemination. — To give utmost priority to
the establishment of programs and services to prevent illegal recruitment, fraud and
exploitation or abuse of Filipino migrant workers, all embassies and consular offices,
through the Philippine Overseas Employment Administration (POEA), shall issue travel
advisories or disseminate information on labor and employment conditions, migration
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realities and other facts; and adherence of particular countries to international standards
on human and workers' rights which will adequately prepare individuals into making
informed and intelligent decisions about overseas employment. Such advisory or
information shall be published in a newspaper of general circulation at least three (3)
times in every quarter.
SECTION 15. Repatriation of Workers; Emergency Repatriation Fund. — The
repatriation of the worker and the transport of his personal belongings shall be the
primary responsibility of the agency which recruited or deployed the worker overseas.
All costs attendant to repatriation shall be borne by or charged to the agency concerned
and/or its principal. Likewise, the repatriation of remains and transport of the personal
belongings of a deceased worker and all costs attendant thereto shall be borne by the
principal and/or the local agency. However, in cases where the termination of
employment is due solely to the fault of the worker, the principal/employer or agency
shall not in any manner be responsible for the repatriation of the former and/or his
belongings. casia
The Overseas Workers Welfare Administration (OWWA), in coordination with
appropriate international agencies, shall undertake the repatriation of workers in cases of
war, epidemic, disaster or calamities, natural or man-made, and other similar events
without prejudice to reimbursement by the responsible principal or agency. However, in
cases where the principal or recruitment agency cannot be identified, all costs attendant
to repatriation shall be borne by the OWWA.
For this purpose, there is hereby created and established an emergency repatriation fund
under the administration, control and supervision of the OWWA, initially to consist of
One hundred million pesos (P100,000,000.00), which shall be taken from the existing
fund controlled and administered by the OWWA. Thereafter, such fund shall be
provided for in the General Appropriations Act from year to year: Provided, That the
amount appropriated shall in no case be less than One hundred million pesos
(P100,000,000.00), inclusive of outstanding balances.
SECTION 16. Mandatory Repatriation of Underage Migrant Workers. — Upon
discovery or being informed of the presence of migrant workers whose actual ages fall
below the minimum age requirement for overseas deployment, the responsible officers in
the foreign service shall without delay repatriate said workers and advise the Department
of Foreign Affairs through the fastest means of communication available of such
discovery and other relevant information.
SECTION 17. Establishment of Re-placement and Monitoring Center. — A re-
placement and monitoring center is hereby created in the Department of Labor and
Employment for returning Filipino migrant workers which shall provide a mechanism
for their reintegration into the Philippine society, serve as a promotion house for their
local employment, and tap their skills and potentials for national development.
The Department of Labor and Employment, the Overseas Workers Welfare
Administration, and the Philippine Overseas Employment Administration shall, within
ninety (90) days from the effectivity of this Act, formulate a program that would
motivate migrant workers to plan for productive options such as entry into highly
technical jobs or undertakings, livelihood and entrepreneurial development, better wage
employment, and investment of savings.
For this purpose, the Technical Education and Skills Development Authority (TESDA),
the Technology Livelihood Resource Center (TLRC), and other government agencies
involved in training and livelihood development shall give priority to returnees who had
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been employed as domestic helpers and entertainers.
SECTION 18. Functions of the Re-placement and Monitoring Center. — The Center
shall provide the following services: cd
(a) Develop livelihood programs and projects for returning Filipino migrant workers in
coordination with the private sector;
(b) Coordinate with appropriate private and government agencies in the promotion,
development, re-placement and the full utilization of their potentials;
(c) Institute, in cooperation with other government agencies concerned, a computer-
based information system on skilled Filipino migrant workers which shall be accessible
to all local recruitment agencies and employers, both public and private;
(d) Provide a periodic study and assessment of job opportunities for returning Filipino
migrant workers; and
(e) Develop and implement other appropriate programs to promote the welfare of
returning Filipino migrant workers.
XV. Repatriation of Filipino Migrant Workers
SECTION 52. Primary Responsibility for Repatriation. — The repatriation of the worker, or
his/her remains, and the transport of his/her personal effects shall be the primary
responsibility of the principal or agency which recruited or deployed him/her abroad. All
costs attendant thereto shall be borne by the principal or the agency concerned.
SECTION 53. Repatriation of Workers. — The primary responsibility to repatriate entails
the obligation on the part of principal or agency to advance the cost of plane fare and to
immediately repatriate the worker should the need for it arise, without a prior determination
of the cause of the termination of the worker's employment. However, after the worker has
returned to the country, the principal or agency may recover the cost of repatriation from the
worker if the termination of employment was due solely to his/her fault.
Every contract for overseas employment shall provide for the primary responsibility of
agency to advance the cost of plane fare, and the obligation of the worker to refund the cost
thereof in case his/her fault is determined by the Labor Arbiter.
SECTION 54. Repatriation Procedure. — When a need for repatriation arises and the
foreign employer fails to provide for it cost, the responsible personnel at site shall
simultaneously notify OWWA and the POEA of such need. The POEA shall notify the
agency concerned of the need for repatriation. The agency shall provide the plane ticket or
the prepaid ticket advice (PTA) to the Filipinos Resource Center or to the appropriate
Philippine Embassy; and notify POEA of such compliance. The POEA shall inform
OWWA of the action of the agency.
SECTION 55. Action on Non-Compliance. — If the employment agency fails to provide
the ticket or PTA within 48 hours from receipt of the notice, the POEA shall suspend the
license of the agency or impose such sanctions as it may deem necessary. Upon notice from
the POEA, OWWA shall advance the costs of repatriation with recourse to the agency or
principal. The administrative sanction shall not be lifted until the agency reimburses the
OWWA of the cost of repatriation with legal interest.
SECTION 56. Emergency Repatriation. — The OWWA, in coordination with the DFA, and
in appropriate situations, with international agencies, shall undertake the repatriation of
workers in cases of war, epidemic, disasters or calamities, natural or man-made, and other
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similar events without prejudice to reimbursement by the responsible principal or agency
within sixty (60) days of notice. In such case, POEA will simultaneously identify and give
notice to the agencies concerned.
SECTION 57. Mandatory Repatriation of Underage Migrant Workers. — The responsible
officer at the foreign service post that shall immediately cause the repatriation of underage
Filipino migrant workers. The cost attendant to this activity shall be borne correspondingly
by the agency and/or principal or the OWWA as the case may be.
SECTION 58. Other Cases of Repatriation. — In all cases where the principal or agency of
the worker cannot be identified, cannot be located or had ceased operations, and the worker
is in need and without means, the OWWA personnel at jobsite, in coordination with the
DFA, shall cause the repatriation. All costs attendant to repatriation borne by the OWWA
are chargeable to the Emergency Repatriation Fund provided in the Act, without prejudice
to the OWWA requiring the agency/employer or the worker to reimburse the cost of
repatriation, in appropriate case.
SECTION 59. Emergency Repatriation Fund. — When repatriation becomes immediate and
necessary, the OWWA shall advance the needed costs from the Emergency Repatriation
Fund without prejudice to reimbursement by the deploying agency and/or principal, or the
worker in appropriate cases. Simultaneously, the POEA shall ask the concerned agency to
work towards reimbursement of costs advanced by the OWWA. In cases where the cost of
repatriation shall exceed One Hundred Million (P100,000,000.00) Pesos, the OWWA shall
make representation with the Office of the President for immediate funding in excess of said
amount.
SECTION 60. Prohibition on Bonds and Deposits. — In no case shall an employment
agency require any bond or cash deposit from the worker to guarantee performance under
contract or his/her repatriation.
SECTION 61. Abolition of Mandatory Repatriation Bond. — Pursuant to Section 36
of R.A 8042, the mandatory repatriation bond is abolished as of 7 June 1995.
SECTION 19. Establishment of a Migrant Workers and Other Overseas Filipinos
Resource Center. — Within the premises and under the administrative jurisdiction of the
Philippine Embassy in countries where there are large concentrations of Filipino migrant
workers, there shall be established a Migrant Workers and Other Overseas Filipinos
Resource Center with the following services:
(a) Counselling and legal services;
(b) Welfare assistance including the procurement of medical and hospitalization
services;
(c) Information, advisory and programs to promote social integration such as post-arrival
orientation, settlement and community networking services and activities for social
interaction;
(d) Institute a scheme of registration of undocumented workers to bring them within the
purview of this Act. For this purpose, the Center is enjoined to compel existing
undocumented workers to register with it within six (6) months from the effectivity of
this Act, under pain of having his/her passport cancelled; cdt
(e) Human resource development, such as training and skills upgrading;
(f) Gender sensitive programs and activities to assist particular needs of women migrant
workers;
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(g) Orientation program for returning workers and other migrants; and
(h) Monitoring of daily situations, circumstances and activities affecting migrant workers
and other overseas Filipinos.
The establishment and operations of the Center shall be a joint undertaking of the
various government agencies. The Center shall be open for twenty-four (24) hours daily
including Saturdays, Sundays and holidays, and shall be staffed by Foreign Service
personnel, service attaches or officers who represent other Philippine government
agencies abroad and, if available, individual volunteers and bona fide non-government
organizations from the host countries. In countries categorized as highly problematic by
the Department of Foreign Affairs and the Department of Labor and Employment and
where there is a concentration of Filipino migrant workers, the government must provide
a lawyer and a social worker for the Center. The Labor Attache shall coordinate the
operation of the Center and shall keep the Chief of Mission informed and updated on all
matters affecting it.
The Center shall have a counterpart 24-hour information and assistance center at the
Department of Foreign Affairs to ensure a continuous network and coordinative
mechanism at the home office. cda
SECTION 20. Establishment of a Shared Government Information System for
Migration. — An inter-agency committee composed of the Department of Foreign
Affairs and its attached agency, the Commission on Filipinos Overseas, the Department
of Labor and Employment, the Philippine Overseas Employment Administration, the
Overseas Workers Welfare Administration, the Department of Tourism, the Department
of Justice, the Bureau of Immigration, the National Bureau of Investigation, and the
National Statistics Office shall be established to implement a shared government
information system for migration. The inter-agency committee shall initially make
available to itself the information contained in existing data bases/files. The second
phase shall involve linkaging of computer facilities in order to allow free-flow data
exchanges and sharing among concerned agencies.
The inter-agency committee shall convene to identify existing data bases which shall be
declassified and shared among member agencies. These shared data bases shall initially
include, but not be limited to, the following information:
(a) Masterlists of Filipino migrant workers/overseas Filipinos classified according to
occupation/job category, civil status, by country/state of destination including visa
classification;
(b) Inventory of pending legal cases involving Filipino migrant workers and other
Filipino nationals, including those serving prison terms;
(c) Masterlists of departing/arriving Filipinos;
(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;
(e) Blacklisted foreigners/undesirable aliens;
(f) Basic data on legal systems, immigration policies, marriage laws and civil and
criminal codes in receiving countries particularly those with large numbers of
Filipinos; cda
(g) List of labor and other human rights instruments where receiving countries are
signatories;
(h) A tracking system of past and present gender disaggregated cases involving male and
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female migrant workers; and
(i) Listing of overseas posts which may render assistance to overseas Filipinos, in
general, and migrant workers, in particular.
SECTION 21. Migrant Workers Loan Guarantee Fund. — In order to further prevent
unscrupulous illegal recruiters from taking advantage of workers seeking employment
abroad, the OWWA, in coordination with government financial institutions, shall
institute financing schemes that will expand the grant of pre-departure loan and family
assistance loan. For this purpose, a Migrant Workers Loan Guarantee Fund is hereby
created and the revolving amount of One hundred million pesos (P100,000,000.00) from
the OWWA is set aside as a guarantee fund in favor of participating government
financial institutions.
SECTION 22. Rights and Enforcement Mechanism Under International and Regional
Human Rights Systems. — The Department of Foreign Affairs is mandated to undertake
the necessary initiative such as promotions, acceptance or adherence of countries
receiving Filipino workers to multilateral convention, declaration or resolutions
pertaining to the protection of migrant workers' rights. The Department of Foreign
Affairs is also mandated to make an assessment of rights and avenues of redress under
international and regional human rights systems that are available to Filipino migrant
workers who are victims of abuse and violation and, as far as practicable and through the
Legal Assistant for Migrant Workers Affairs created under this Act, pursue the same on
behalf of the victim if it is legally impossible to file individual complaints. If a
complaints machinery is available under international or regional systems, the
Department of Foreign Affairs shall fully apprise the Filipino migrant workers of the
existence and effectiveness of such legal options.
X. Migrant Workers Loan Guarantee Fund
SECTION 30. Definitions. —
(a) Pre-Departure Loans — refers to loans granted to departing migrant workers covered by
new contracts to satisfy their pre-departure requirements such as payments for
placement/processing fees, airplane fare, subsistence allowance, cost of clothing and pocket
money.
(b) Family Assistance Loans — refers to loans granted to currently employed migrant
workers or their eligible dependents/families in the Philippines to tide them over during
emergency situations.
(c) Guarantee Agreement — refers to a contract between the participating financial
institution and OWWA whereby the latter pledges to pay a loan obtained by a migrant
worker from the former in case the worker defaults.
(d) GFIs — refers to government financial institutions.
SECTION 31. Loan Guarantee Fund. — The Migrant Workers Loan Guarantee Fund is
hereby established:
(a) to prevent any recruiter from taking advantage of workers seeking employment abroad
by expanding the grant of Pre-Departure and Family Assistance Loans to covered migrant
workers;
(b) to established and operate a guarantee system in order to provide guarantee cover on the
pre-departure and family assistance loans of migrant workers who lack or have insufficient
collaterals or securities; and
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(c) to ensure the participation of GFIs in extending loan assistance to needy migrant
workers who are to be engaged or is engaged for a remunerated activity abroad.
SECTION 32. Coverage and Scope. — All departing migrant workers who need financial
assistance to pay or satisfy their pre-departure expenses may avail of the Pre-Departure
Loans. cdasia
Currently employed migrant workers or their eligible dependents who need emergency
financing assistance may avail of the Family Assistance Loan.
SECTION 33. Administration of the Fund. — Pursuant to Section 21 of the Act, the amount
of One hundred million pesos (P100,000,000.00) from the Capital Funds of OWWA shall
constitute the Migrant Workers Loan Guarantee Fund. The Fund, which shall be
administered by the OWWA, shall be used exclusively to guarantee the repayment of Pre-
Departure and Family Assistance Loans granted by participating GFIs.
All existing revolving funds earmarked for the Pre-Departure and Family Assistance Loans
shall revert back to OWWA's Capital Fund.
SECTION 34. Financing Scheme. — The OWWA shall initiate arrangements with GFIs to
implement mutually agreed financing schemes, that will expand the Pre-Departure and
Family Assistance Loans.
SECTION 35. Guarantee Agreement. — No loan shall be considered covered by a
guarantee unless a Guarantee Agreement has been prepared and approved by both the
participating financial institution and the OWWA.
XI. Congressional Migrant Workers Scholarship Program
SECTION 36. Establishment of the Congressional Migrant Workers Scholarship Fund. —
There is hereby created a Congressional Migrant Workers Scholarship Fund which shall
benefit deserving migrant workers and/or their immediate descendants who intend to pursue
courses or trainings primarily in the field of science and technology, as defined by the
DOST.
SECTION 37. Sources of Fund. — The initial seed Fund of Two hundred million pesos
(P200,000,000.00) shall be constituted from the following sources:
(a) Fifty million pesos (P50,000,000.00) from the unexpended Countrywide Development
Fund for 1995 in equal sharing by all Members of Congress; and
(b) The remaining One hundred fifty million pesos (P150,000,000.00) shall be funded from
the proceeds of Lotto draws.
SECTION 38. Creation of the Scholarship Fund Committee. — There is hereby created a
Scholarship Fund Committee to be composed of representatives from the DOLE, DOST,
POEA, OWWA, TESDA and two (2) representatives of migrant workers to be appointed by
the Secretary of Labor and Employment.
SECTION 39. Functions of the Scholarship Fund Committee. —
(a) To set the coverage, criteria and standards of admission to the Scholarship Program;
(b) To determine the amount of availment;
(c) To monitor and evaluate the program;
(d) To identify/accredit training and testing institutions; and
(e) To perform such other functions necessary to attain the purpose of the Fund.
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XIII. Migrant Workers and Other Overseas Filipinos Resource Center
SECTION 44. Establishment of Overseas Filipinos Resource Center. — Pursuant to
Sections 19 and 23 of the Migrant Workers and Overseas Filipinos Act of 1995, a Migrant
Workers and Overseas Filipinos Resource Center (Filipinos Resource Center) shall be
established in countries where there are at least 20,000 migrant workers. Where feasible it
shall be established within the premises of the Embassy.
When the Filipinos Resource Center is established outside the premises of the Embassy, the
Department of Foreign Affairs shall exert its best effort to secure appropriate accreditation
from the host government in accordance with applicable laws and practices.
SECTION 45. Services. — The Filipinos Resource Center shall provide the following
services:
(a) Counseling and legal services;
(b) Welfare assistance including the procurement of medical and hospitalization services;
(c) Information, advisory programs to promote social integration such as post-arrival
orientation, settlement and community networking services and activities for social
interaction;
(d) Registration of undocumented workers to bring them within the purview of the Act;
(e) Implementation of the Voluntary Membership Program of OWWA;
(f) Human resource development, such as training and skills upgrading;
(g) Gender-sensitive programs and activities to assist particular needs of migrant workers;
(h) Orientation program for returning workers and other migrant;
(i) Monitoring of daily situations, circumstances and activities affecting migrant workers
and other overseas Filipinos;
(j) Seeing to it that labor and social welfare laws in the host country are fairly applied to
migrant workers and other overseas Filipinos; and
(k) Conciliation of disputes arising from employer-employee relationship.
SECTION 46. Personnel. — Each Filipinos Resource Center shall be staffed by a minimum
of four (4) personnel composed of the following:
(a) a Labor Attache (DOLE)
(b) Foreign Service Personnel (DFA)
(c) a Welfare Officer (OWWA)
(d) a Center Coordinator (OWWA)
(e) an Interpreter, when necessary (local hire)
When the Foreign Service Post is deemed highly problematic and has a concentration of
Filipino migrant workers, a lawyer and a social worker may be deployed by concerned
government agency upon the recommendation of the Chief of Mission.
SECTION 47. Administration. — The Labor Attache shall coordinate the operation of the
Filipinos Resource Center and shall keep the Chief of Mission informed and updated on all
matters affecting it.
SECTION 48. Round-the Clock Operations. — The Filipinos Resource Center shall operate
on a 24-hour basis including Saturdays, Sundays and Holidays. A counterpart 24-hour
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Information and Assistance Center to ensure a continuous network and coordinative
mechanism shall be established at the DFA.
SECTION 49. Budget. — The establishment, yearly maintenance and operating costs of the
Filipinos Resource Centers, including the costs of services and programs not specially
funded under the Act, shall be sourced from the General Appropriations Act (GAA) and
shall be included in the annual budget of DOLE. In the meantime, existing Filipino Workers
Development Centers presently manned and operated by the OWWA shall be funded by the
OWWA until such time as the operating expenses and other related expenditures of the
Filipinos Resource Centers are integrated in the GAA.
However, the salaries and allowances of overseas personnel shall be sourced from their
respective agency's budget.
SECTION 50. Sharing of Information. — The registry of undocumented workers and other
relevant data shall be provided by the Filipinos Resource Centers to the Inter-agency
Committee on Shared Information Systems.
IV. Government Agencies
SECTION 23. Role of Government Agencies. — The following government agencies
shall perform the following to promote the welfare and protect the rights of migrant
workers and, as far as applicable, all overseas Filipinos:
(a) Department of Foreign Affairs — The Department, through its home office or foreign
posts, shall take priority action or make representation with the foreign authority
concerned to protect the rights of migrant workers and other overseas Filipinos and
extend immediate assistance including the repatriation of distressed or beleaguered
migrant workers and other overseas Filipinos;
(b) Department of Labor and Employment — The Department of Labor and
Employment shall see to it that labor and social welfare laws in the foreign countries are
fairly applied to migrant workers and whenever applicable, to other overseas Filipinos
including the grant of legal assistance and the referral to proper medical centers or
hospitals:
(b.1) Philippine Overseas Employment Administration — Subject to deregulation and
phase-out as provided under Sections 29 and 30 herein, the Administration shall regulate
private sector participation in the recruitment and overseas placement of workers by
setting up a licensing and registration system. It shall also formulate and implement, in
coordination with appropriate entities concerned, when necessary, a system for
promoting and monitoring the overseas employment of Filipino workers taking into
consideration their welfare and the domestic manpower requirements. 
(b.2) Overseas Workers Welfare Administration — The Welfare officer or in his
absence, the coordinating officer shall provide the Filipino migrant worker and his
family all the assistance they may need in the enforcement of contractual obligations by
agencies or entities and/or by their principals. In the performance of this function, he
shall make representation and may call on the agencies or entities concerned to
conferences or conciliation meetings for the purpose of settling the complaints or
problems brought to his attention.
SECTION 40. Implementing Agency. — The OWWA shall be the Secretariat of the
Scholarship Fund Committee. As such, it shall administer the Scholarship Program,
in coordination with the DOST.
XIV. Enforcement of Contractual Obligations
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SECTION 51. Role of OWWA. — The Welfare Officer, or in his/her absence, the
Center Coordinator of the Filipinos Resource Center shall make proper
representations with the employer/principal and/or agency as the case may be,
through conciliation meetings or conferences for the purpose of enforcing
contractual obligations concerning migrant workers. For this purpose, the officer
may enlist the assistance of the OWWA Home Office.
V. The Legal Assistant for Migrant Workers Affairs
SECTION 24. Legal Assistant for Migrant Workers Affairs. — There is hereby created
the position of Legal Assistant for Migrant Workers Affairs under the Department of
Foreign Affairs who shall be primarily responsible for the provision and overall
coordination of all legal assistance services to be provided to Filipino migrant workers as
well as overseas Filipinos in distress. He shall have the rank, salary and privileges equal
to that of an undersecretary of said Department.
The said Legal Assistant for Migrant Workers Affairs, shall be appointed by the
President and must be of proven competence in the field of law with at least ten (10)
years of experience as a legal practitioner and must not have been a candidate to an
elective office in the last local or national elections.
Among the functions and responsibilities of the aforesaid Legal Assistant are:
(a) To issue the guidelines, procedures and criteria for the provision of legal assistance
services to Filipino migrant workers;
(b) To establish close linkages with the Department of Labor and Employment, the
POEA, the OWWA and other government agencies concerned, as well as with non-
governmental organizations assisting migrant workers, to ensure effective coordination
and cooperation in the provision of legal assistance to migrant workers; cd
(c) To tap the assistance of reputable law firms and the Integrated Bar of the Philippines
and other bar associations to complement the government's efforts to provide legal
assistance to our migrant workers;
(d) To administer the legal assistance fund for migrant workers established under Section
25 hereof and to authorize disbursements therefrom in accordance with the purposes for
which the fund was set up; and
(e) To keep and maintain the information system as provided in Section 20.
The Legal Assistant for Migrant Workers Affairs shall have authority to hire private
lawyers, domestic or foreign, in order to assist him in the effective discharge of the
above functions.
SECTION 25. Legal Assistance Fund. — There is hereby established a legal assistance
fund for migrant workers, hereinafter referred to as the Legal Assistance Fund, in the
amount of One hundred million pesos (P100,000,000.00) to be constituted from the
following sources:
Fifty million pesos (P50,000,000.00) from the Contingency Fund of the President;
Thirty million pesos (P30,000,000.00) from the Presidential Social Fund; and
Twenty million pesos (P20,000,000.00) from the Welfare Fund for Overseas Workers
established under Letter of Instruction No. 537, as amended by Presidential Decree Nos.
1694 and 1809.
Any balances of existing funds which have been set aside by the government specifically
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as legal assistance or defense fund to help migrant workers shall, upon effectivity of
this Act, be turned over to, and form part of, the Fund created under this Act.
SECTION 26. Uses of the Legal Assistance Fund. — The Legal Assistance Fund created
under the preceding section shall be used exclusively to provide legal services to migrant
workers and overseas Filipinos in distress in accordance with the guidelines, criteria and
procedures promulgated in accordance with Section 24(a) hereof. The expenditures to be
charged against the Fund shall include the fees for the foreign lawyers to be hired by the
Legal Assistant for Migrant Workers Affairs to represent migrant workers facing charges
abroad, bail bonds to secure the temporary release of workers under detention, court fees
and charges and other litigation expenses.
XII. Legal Assistant for Migrant Workers Affairs
SECTION 41. Functions and Responsibilities. — The Legal Assistant for Migrant Workers
Affairs under the Department of Foreign Affairs shall be primarily responsible for the
provision and over-all coordination of all legal assistance services to Filipino Migrant
Workers as well as Overseas Filipinos in distress. In the exercise of these primary
responsibilities, he/she shall discharge the following duties and functions:
(a) Issue the guidelines, procedure and criteria for the provision of legal assistance services
to Filipino Migrant Workers;
(b) Establish close linkages with the DOLE, POEA, OWWA and other government
agencies concerned, as well as with non-governmental organizations assisting migrant
workers, to ensure effective coordination in providing legal assistance to migrant workers;
(c) Tap the assistance of the Integrated Bar of the Philippines (IBP), other bar associations,
and reputable law firms, as the need arises, to complement government services and
resources to provide legal assistance to migrant workers;
(d) Administer the Legal Assistance Fund for Migrant Workers and to authorize its
disbursement, subject to approved guidelines and procedures, governing its use, disposition
and disbursement;
(e) Keep and maintain an information system for migration as provided in Sec. 20 of
the Act; and
(f) Prepare its budget for inclusion in the Department of Foreign Affairs' budget in the
annual General Appropriations Act.
SECTION 42. Qualifications and Authority. — The Legal Assistance for Migrant Workers
Affairs shall be headed by a lawyer of proven competence in the field of law with at least
ten (10) years experience as a legal practitioner and who must not have been a candidate to
an elective office in the last local or national elections. He/She shall be appointed by the
President of the Philippines. He/She shall have the ranks, salary, and privileges equal to that
of the Undersecretary of Foreign Affairs.
The Legal Assistant for Migrant Workers Affairs shall have authority to hire private
lawyers, domestic or foreign, in order to assist him/her in the effective discharge of the
functions of his/her Office.
SECTION 43. Legal Assistance Fund. — The Legal Assistance Fund created under
the Act shall be used exclusively to provide legal services for Migrant Workers and
Overseas Filipinos in distress in accordance with approved guidelines, criteria and
procedures.
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It shall be used inter alia for the following specific purposes:
(a) Payment of attorney's fees to foreign lawyers for their services in representing migrant
workers facing criminal and other charges;
(b) Bail bonds to secure the temporary release of workers under detention when so
recommended by the lawyer;
(c) Court fees, charges and other litigation expenses when so recommended by their
lawyers.
VI. Country-Team Approach
SECTION 27. Priority Concerns of Philippine Foreign Service Posts. — The country-
team approach, as enunciated under Executive Order No. 74, series of 1993, shall be the
mode under which Philippine embassies or their personnel will operate in the protection
of the Filipino migrant workers as well as in the promotion of their welfare. The
protection of the Filipino migrant workers and the promotion of their welfare, in
particular, and the protection of the dignity and fundamental rights and freedoms of the
Filipino citizen abroad, in general, shall be the highest priority concerns of the Secretary
of Foreign Affairs and the Philippine Foreign Service Posts. cdasia
SECTION 28. Country-Team Approach. — Under the country-team approach, all
officers, representatives and personnel of the Philippine government posted abroad
regardless of their mother agencies shall, on a per country basis, act as one country-team
with a mission under the leadership of the ambassador. In this regard, the ambassador
may recommend to the Secretary of the Department of Foreign Affairs the recall of
officers, representatives and personnel of the Philippine government posted abroad for
acts inimical to the national interest such as, but not limited to, failure to provide the
necessary services to protect the rights of overseas Filipinos.
Upon receipt of the recommendation of the ambassador, the Secretary of the Department
of Foreign Affairs shall, in the case of officers, representatives and personnel of other
departments, endorse such recommendation to the department secretary concerned for
appropriate action. Pending investigation by an appropriate body in the Philippines, the
person recommended for recall may be placed under preventive suspension by the
ambassador.
In host countries where there are Philippine consulates, such consulates shall also
constitute part of the country-team under the leadership of the ambassador.
In the implementation of the country-team approach, visiting Philippine delegations shall
be provided full support and information
VII. Deregulation and Phase-Out
SECTION 29. Comprehensive Deregulation Plan on Recruitment Activities. — Pursuant
to a progressive policy of deregulation whereby the migration of workers becomes
strictly a matter between the worker and his foreign employer, the DOLE, within one (1)
year from the effectivity of this Act, is hereby mandated to formulate a five-year
comprehensive deregulation plan on recruitment activities taking into account labor
market trends, economic conditions of the country and emerging circumstances which
may affect the welfare of migrant workers.
SECTION 30. Gradual Phase-out of Regulatory Functions. — Within a period of five (5)
years from the effectivity of this Act, the DOLE shall phase-out the regulatory functions
of the POEA pursuant to the objectives of the deregulation.
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VIII. Professional and Other Highly-Skilled Filipinos Abroad
SECTION 31. Incentives to Professionals and Other Highly-Skilled Filipinos Abroad. —
Pursuant to the objective of encouraging professionals and other highly-skilled Filipinos
abroad especially in the field of science and technology to participate in, and contribute
to national development, the government shall provide proper and adequate incentives
and programs so as to secure their services in priority development areas of the public
and private sectors.
IX. Miscellaneous Provisions
SECTION 32. POEA and OWWA Board; Additional Memberships. — Notwithstanding
any provision of law to the contrary, the respective Boards of the POEA and the OWWA
shall, in addition to their present composition, have three (3) members each who shall
come from the women, sea-based and land-based sectors respectively, to be appointed by
the President in the same manner as the other members.
SECTION 33. Report to Congress. — In order to inform the Philippine Congress on the
implementation of the policy enunciated in Section 4 hereof, the Department of Foreign
Affairs and the Department of Labor and Employment shall submit to the said body a
semi-annual report of Philippine foreign posts located in countries hosting Filipino
migrant workers. The report shall include, but shall not be limited to, the following
information:
(a) Masterlist of Filipino migrant workers, and inventory of pending legal cases
involving them and other Filipino nationals including those serving prison terms;
(b) Working conditions of Filipino migrant workers;
(c) Problems encountered by the migrant workers, specifically violations of their rights;
(d) Initiatives/actions taken by the Philippine foreign posts to address the problems of
Filipino migrant workers;
(e) Changes in the laws and policies of host countries; and
(f) Status of negotiations on bilateral labor agreements between the Philippines and the
host country.
Any officer of the government who fails to report as stated in the preceding section shall
be subject to administrative penalty.
SECTION 34. Representation in Congress. — Pursuant to Section 5(2), Article VI of
the Constitution and in line with the objective of empowering overseas Filipinos to
participate in the policy-making process to address Filipino migrant concerns, two (2)
sectoral representatives for migrant workers in the House of Representatives shall be
appointed by the President from the ranks of migrant workers: Provided, That at least
one (1) of the two (2) sectoral representatives shall come from the women migrant
workers sector: Provided, further, That all nominees must have at least two (2) years
experience as a migrant worker. cda
SECTION 35. Exemption from Travel Tax and Airport Fee. — All laws to the contrary
notwithstanding, the migrant worker shall be exempt from the payment of travel tax and
airport fee upon proper showing of proof of entitlement by the POEA.
SECTION 36. Non-increase of Fees; Abolition of Repatriation Bond. — Upon approval
of this Act, all fees being charged by any government office on migrant workers shall
remain at their present levels and the repatriation bond shall be abolished.
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SECTION 37. The Congressional Migrant Workers Scholarship Fund. — There is
hereby created a Congressional Migrant Workers Scholarship Fund which shall benefit
deserving migrant workers and/or their immediate descendants below twenty-one (21)
years of age who intend to pursue courses or training primarily in the field of science and
technology. The initial seed fund of Two hundred million pesos (P200,000,000.00) shall
be constituted from the following sources:
(a) Fifty million pesos (P50,000,000.00) from the unexpended Countrywide
Development Fund for 1995 in equal sharing by all Members of Congress; and
(b) The remaining One hundred fifty million pesos (P150,000,000.00) shall be funded
from the proceeds of Lotto draws. aisa dc
The Congressional Migrant Workers Scholarship Fund as herein created shall be
administered by the DOLE in coordination with the Department of Science and
Technology (DOST). To carry out the objectives of this section, the DOLE and the
DOST shall formulate the necessary rules and regulations.
SECTION 38. Appropriation and Other Sources of Funding. — The amount necessary to
carry out the provisions of this Act shall be provided for in the General
Appropriations Act of the year following its enactment into law and thereafter.
SECTION 39. Migrant Workers Day. — The day of signing by the President of
this Act shall be designated as the Migrant Workers Day and shall henceforth be
commemorated as such annually.
SECTION 40. Implementing Rules and Regulations. — The departments and agencies
charged with carrying out the provisions of this Act shall, within ninety (90) days after
the effectivity of this Act, formulate the necessary rules and regulations for its effective
implementation. cdtai
SECTION 41. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.
SECTION 42. Separability Clause. — If, for any reason, any section or provision of
this Act is held unconstitutional or invalid, the other sections or provisions hereof shall
not be affected thereby.
SECTION 43. Effectivity Clause. — This Act shall take effect after fifteen (15) days
from its publication in the Official Gazette or in at least two (2) national newspapers of
general circulation whichever comes earlier.
Approved: June 7, 1995
Published in Malaya and the Philippine Times Journal on June 30, 1995. Published in the
Official Gazette, Vol. 91 No. 32 page 4994 on August 7, 1995.
XVI. Money Claims
SECTION 62. Jurisdiction of the Labor Arbiters. — The Labor Arbiters of NLRC shall
have the original and exclusive jurisdiction to hear and decide all claims arising out of
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, subject to the rules and procedures of the NLRC.
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SECTION 63. Pending Cases. — All unresolved money claims pending at POEA as of 15
July 1995 shall be referred to NLRC for disposition.
SECTION 64. Solidary Liability. — The liability of the principal/employer and the
recruitment/placement agency on any and all claims under this Rule shall be joint and
solidary. This liability shall be incorporated in the contract for overseas employment and
shall be a condition precedent for its approval. The performance bond to be filed by the
recruitment/placement agency, as provided by law, shall be answerable for all money claims
or damages that may be awarded to the workers.
If the recruitment/placement 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.
Such 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.
SECTION 65. Compromise Agreement. — Any compromise, amicable settlement or
voluntary agreement on money claims inclusive of damages under this Rule shall be paid
within four (4) months from the approval of the settlement by the appropriate authority.
XVII. Re-Placement and Monitoring Center (RPM Center)
SECTION 66. Re-Placement and Monitoring Center. — A Re-Placement and Monitoring
Center (RPM Center) is hereby created in the DOLE for returning Filipino migrant workers
which shall:
(a) provide a mechanism for their reintegration into the Philippine society;
(b) serve as a promotion house for their local employment; and
(c) tap their skills and potentials for national development.
The RPM Center shall be under the administrative supervision and control of the Secretary
of Labor and Employment.
The RPM Center, while serving the needs of returning migrant workers, shall likewise
provide support to related programs in the Filipinos Resource Centers.
SECTION 67. Secretariat. — A Secretariat shall be created to be composed of technical
staff from, but not limited to, the OWWA, POEA, TESDA, and BLE; and shall be headed
by a Program Manager to be designated by the Secretary of Labor and Employment. The
Secretariat shall be the coordinating and monitoring body of the RPM Center.
SECTION 68. Participation of Government, Private Sector and NGOs. — The DOLE, in
pursuit of the objectives and functions of the RPM Center, may request the participation of
other government agencies, the private sector and non-government organizations. Each
participating entity shall identify and develop programs or services related to reintegration
for the attainment of the RPM Center's objectives. A Memorandum of Agreement (MOA)
shall be entered into by the participating entities to define their respective roles.
SECTION 69. Function of the RPM Center. — The RPM Centers shall provide the
following services:
(a) Develop livelihood programs and projects for returning Filipino migrant workers in
coordination with the private sector;
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(b) Coordinate with appropriate private and government agencies in the promotion,
development, re-placement and the full utilization of the potentials of returning migrant
workers;
(c) Provide a periodic study and assessment of job opportunities for returning Filipino
migrant workers;
(d) Develop and implement other appropriate programs to promote the welfare of returning
Filipino workers; and
(e) In coordination with DOST, provide incentives for professionals and other highly-skilled
Filipinos abroad, especially in the field of science and technology, to participate in and
contribute to national development.
SECTION 70. Funding for the RPM Center. —
(a) Funds necessary for the establishment and initial implementation of the programs or
services of the RPM Center shall be sourced from each of the participating agencies as may
be determined by the Secretary of Labor and Employment.
(b) Funds for the operation of the RPM Center shall come from the General
Appropriations Act and shall be integrated into the annual budget of the DOLE.
XVIII. Shared Government Information System for Migration
SECTION 71. Composition. — Said Inter-agency Committee shall be composed of the
following agencies:
(a) The Department of Foreign Affairs, as Chairman;
(b) Department of Labor and Employment, as Vice-Chairman;
(c) Department of Justice;
(d) Department of Tourism;
(e) Philippine Overseas Employment Administration;
(f) Overseas Workers Welfare Administration;
(g) Bureau of Immigration;
(h) National Bureau of Investigation;
(i) National Statistics Office; and
(j) Commission on Filipinos Overseas.
SECTION 72. Initially, the Inter-agency Committee shall make available to itself the
information contained in existing data bases/files. The second phase shall involve the
linkaging of computer facilities in order to allow free-flow data exchanges and sharing
among concerned agencies.
SECTION 73. Information and data acquired through this shared information system shall
be treated as confidential and shall only be used for lawful and official purposes, connected
to the usual functions of the member agencies, and for purposes envisioned by R.A. 8042.
SECTION 74. The Inter-agency Committee shall convene to identify existing data bases
which shall be declassified and shared only among member agencies. These shared data
bases shall initially include, but not be limited to, the following:
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(a) Masterlists of Filipino migrant workers/mail order brides/overseas Filipinos classified
according to occupation/job category, civil status, by country/state of destination including
visa classification;
(b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino
nationals, including those serving prison terms;
(c) Masterlist of departing/arriving Filipinos;
(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;
(e) Blacklisted foreigners/undesirable aliens;
(f) Basic data on legal systems, immigration policies, marriage laws and civil and criminal
codes in receiving countries particularly those with large numbers of Filipinos;
(g) List of labor and other human rights instruments where receiving countries are
signatories;
(h) A tracking system of past and present gender disaggregated cases involving male and
female migrant workers;
(i) Listing of overseas posts which may render assistance to overseas Filipinos, in general,
and migrant workers, in particular.
(j) Listing of accredited recruiters and recruitment agencies;
(k) Listing of accredited foreign employers; and
(l) Listing of recruiters and recruitment agencies with decided/pending
criminal/civil/administrative cases, and their dispositions.
For purposes of declassifying information, the Inter-agency Committee shall establish
policies, guidelines and procedures.
SECTION 75. The Inter-agency Committee shall submit appropriate recommendations to
the President. It shall also provide information and factual basis for the report to Congress
by the DFA and DOLE.
SECTION 76. Secretariat. — A secretariat which shall provide administrative and support
services to the Inter-agency Committee shall be based in the DFA.
SECTION 77. Funds. — There is hereby allocated the initial amount of P10M from the
Philippine Charity Sweepstakes Office to carry out the provisions of this Rule. Thereafter,
the actual budget of the Inter-agency Committee shall be drawn from the General
Appropriations Act in accordance with Section 38 of R.A 8042.
XIX. Migrant Workers Day
SECTION 78. Commemoration. — The DOLE shall lead and enlist the cooperation of other
government agencies in the commemoration of a Migrant Workers Day on 7 June of every
year.
XX. Miscellaneous Provisions
SECTION 79. Additional Members of the POEA and OWWA Boards. — The POEA and
OWWA Boards shall have at least three (3) additional members each to come from the
women, sea-based and land-based sectors, and to be appointed by the President.
SECTION 80. Reports to Congress. — The DFA and DOLE shall submit to Congress the
required reports under Section 33 of the Act on or before the last day of the Quarter
following the reporting period.
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SECTION 81. Repealing Clause. — All Department Orders, Circulars and Implementing
Rules and Regulations inconsistent with these Omnibus Rules and Regulations are hereby
repealed or amended accordingly.
SECTION 82. Effectivity. — The provisions of these Rules and Regulations shall take
effect fifteen days (15) after the publication in two (2) newspapers of general circulation.
DONE in the City of Manila, this 29th day of February, 1996.
2. REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
Labor Code: Articles 16, 18, 25-33, 35-37 R.A. 8042, Sections 29 – 30
ARTICLE 16. Private Recruitment. —
Except as provided in Chapter II of this Title, no person or entity other than the public
employment offices, shall engage in the recruitment and placement of workers.
ARTICLE 18. Ban on Direct-Hiring. —
No employer may hire a Filipino worker for overseas employment except through the
Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and such other employers as may be allowed
by the Secretary of Labor is exempted from this provision.
CHAPTER II
Regulation of Recruitment and Placement Activities
ARTICLE 25. Private Sector Participation in the Recruitment and Placement of
Workers. —
Pursuant to national development objectives and in order to harness and maximize the
use of private sector resources and initiative in the development and implementation of a
comprehensive employment program, the private employment sector shall participate in
the recruitment and placement of workers, locally and overseas, under such guidelines,
rules and regulations as may be issued by the Secretary of Labor.
(NOTE: See Sec. 3 and 14 of RA 10022)
Section 3. Section 4 of Republic Act No. 8042, as amended, is hereby amended to rerad as
follows:
"SEC. 4. Deployment of Migrant Workers. - The State shall allow the deployment of
overseas Filipino workers only in countries where the rights of Filipino migrant workers are
protected. The government recognizes any of the following as a guarantee on the part of the
receiving country for the protection of the rights of overseas Filipino workers:
(a) It has existing labor and social laws protecting the rights of workers, including migrant
workers;
(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or
resolutions relating to the protection of workers, including migrant workers; and 
(c) It has concluded a bilateral agreement or arrangement with the government on the
protection of the rights of overseas Filipino Workers:
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Provided, That the receiving country is taking positive, concrete measures to protect the
rights of migrant workers in furtherance of any of the guarantees under subparagraphs (a),
(b) and (c) hereof.
"In the absence of a clear showing that any of the aforementioned guarantees exists in the
country of destination of the migrant workers, no permit for deployment shall be issued by
the Philippine Overseas Employment Administration (POEA).
"The members of the POEA Governing Board who actually voted in favor of an order
allowing the deployment of migrant workers without any of the aforementioned guarantees
shall suffer the penalties of removal or dismissal from service with disqualification to hold
any appointive public office for five (5) years, Further, the government official or employee
responsible for the issuance of the permit or for allowing the deployment of migrant workers
in violation of this section and in direct contravention of an order by the POEA Governing
Board prohibiting deployment shall be meted the same penalties in this section.
"For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a
certification to the POEA, specifying therein the pertinent provisions of the receiving
country's labor/social law, or the convention/declaration/resolution, or the bilateral
agreement/arrangement which protect the rights of migrant workers.
"The State shall also allow the deployment of overseas Filipino workers to vessels
navigating the foreign seas or to installations located offshore or on high seas whose
owners/employers are compliant with international laws and standards that protect the rights
of migrant workers.
"The State shall likewise allow the deployment of overseas Filipino workers to companies
and contractors with international operations: Provided, That they are compliant with
standards, conditions and requirements, as embodied in the employment contracts
prescribed by the POEA and in accordance with internationally-accepted standards."
Section 14. Institution of Criminal Action Upon Closure Order. The POEA Administrator or
the DOLE Regional Director, or their duly authorized representatives, or any law enforcement
agencies or any aggrieved person may initiate the corresponding criminal action with the
appropriate prosecutor's office.
ARTICLE 26. Travel Agencies Prohibited to Recruit.
Travel agencies and sales agencies of airline companies are prohibited from engaging in
the business of recruitment and placement of workers for overseas employment whether
for profit or not.
NOTE: See Sec. 6(j) of RA 8042, as amended
SEC. 6. Definition. - For purposes of this Act, illegal recruitment shall mean any act of
canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and
includes referring, contract services, promising or advertising for employment abroad, whether
for profit or not, when undertaken by non-licensee or non-holder of authority contemplated
under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor
Code of the Philippines: Provided, That any such non-licensee or non-holder 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 following acts, whether committed by any
person, whether a non-licensee, non-holder, licensee or holder of authority:
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xxx
(j) For an officer or agent of a recruitment or placement agency to become an officer or
member of the Board of any corporation engaged in travel agency or to be engaged directly or
indirectly in the management of travel agency;
ARTICLE 27. Citizenship Requirement. —
Only Filipino citizens or corporations, partnerships or entities at least seventy-five
percent (75%) of the authorized and voting capital stock of which is owned and
controlled by Filipino citizens shall be permitted to participate in the recruitment and
placement of workers, locally or overseas.
NOTE: Sec. 6(n) of RA 8042, as amended, classifies as illegal recruitment “to allow a non-
Filipino citizen to head or manage a licensed recruitment/manning agency.
ARTICLE 28. Capitalization. —
All applicants for authority to hire or renewal of license to recruit are required to have
such substantial capitalization as determined by the Secretary of Labor.
NOTE: For overseas employment, see POEA rules. For local, DOLE’s PRPA guidelines
ARTICLE 29. Non-transferability of License or Authority. —
No license or authority shall be used directly or indirectly by any person other than the
one in whose favor it was issued or at any place other than that stated in the license or
authority be transferred, conveyed or assigned to any other person or entity. Any transfer
of business address, appointment or designation of any agent or representative including
the establishment of additional offices anywhere shall be subject to the prior approval of
the Department of Labor.
ARTICLE 30. Registration Fees. —
The Secretary of Labor shall promulgate a schedule of fees for the registration of all
applicants for license or authority.
ARTICLE 31. Bonds. —
All applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor to guarantee compliance with prescribed
recruitment procedures, rules and regulations, and terms and conditions of employment
as may be appropriate.
ARTICLE 32. Fees to be Paid by Workers. —
Any person applying with a private fee-charging employment agency for employment
assistance shall not be charged any fee until he has obtained employment through its
efforts or has actually commenced employment. Such fee shall be always covered with
the appropriate receipt clearly showing the amount paid. The Secretary of Labor shall
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promulgate a schedule of allowable fees.
ARTICLE 33. Reports on Employment Status. —
Whenever the public interest requires, the Secretary of Labor may direct all persons or
entities within the coverage of this Title to submit a report on the status of employment,
including job vacancies, details of job requisitions, separation from jobs, wages, other
terms and conditions and other employment data.
ARTICLE 35. Suspension and/or Cancellation of License or Authority. —
The Minister of Labor shall have the power to suspend or cancel any license or authority
to recruit employees for overseas employment for violation of rules and regulations
issued by the Ministry of Labor, the Overseas Employment Development Board, or for
violation of the provisions of this and other applicable laws, General Orders and Letters
of Instructions.
ART. 34. Prohibited Practices.
It shall be unlawful for any individual, entity, licensee, or holder of authority:
A. To charge or accept, directly or indirectly, any amount greater than that specified in
the schedule of allowable fees prescribed by the Secretary of Labor, or to make a
worker pay any amount greater than that actually received by him as a loan or
advance;
B. To furnish or publish any false notice or information or document in relation to
recruitment or employment;
C. To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code;
D. To induce or attempt to induce a worker already employed to quit his employment in
order to offer him to another unless the transfer is designed to liberate the worker
from oppressive terms and conditions of employment;
E. To influence or to attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency;
F. To engage in the recruitment or placement of workers in jobs harmful to public
health or morality or to the dignity of the Republic of the Philippines;
G. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly
authorized representatives;
H. To fail to file reports on the status of employment, placement vacancies, remittance
of foreign exchange earnings, separation from jobs, departures and such other
matters or information as may be required by the Secretary of Labor;
I. To substitute or alter employment contracts approved and verified by the Department
of Labor from the time of actual signing thereof by the parties up to and including
the periods of expiration of the same without the approval of the Secretary of Labor;
J. To become an officer or member of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the management of a travel agency;
and
To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and its
implementing rules and regulations.
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CHAPTER III
Miscellaneous Provisions
ARTICLE 36. Regulatory Power. —
The Secretary of Labor shall have the power to restrict and regulate the recruitment and
placement activities of all agencies within the coverage of this Title and is hereby
authorized to issue orders and promulgate rules and regulations to carry out the
objectives and implement the provisions of this Title.

ARTICLE 37. Visitorial Power. —

The Secretary of Labor or his duly authorized representatives may, at any time, inspect
the premises, books of accounts and records of any person or entity covered by this Title,
require it to submit reports regularly on prescribed forms, and act on violation of any
provisions of this Title.

REPUBLIC ACT 8042

VII. Deregulation and Phase-Out
SECTION 29. Comprehensive Deregulation Plan on Recruitment Activities. —
Pursuant to a progressive policy of deregulation whereby the migration of workers becomes
strictly a matter between the worker and his foreign employer, the DOLE, within one (1)
year from the effectivity of this Act, is hereby mandated to formulate a five-year
comprehensive deregulation plan on recruitment activities taking into account labor market
trends, economic conditions of the country and emerging circumstances which may affect
the welfare of migrant workers.

SECTION 30. Gradual Phase-out of Regulatory Functions. —

Within a period of five (5) years from the effectivity of this Act, the DOLE shall phase-out
the regulatory functions of the POEA pursuant to the objectives of the deregulation.

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A. PRINCIPLES AND DEFINITIONS
Labor Code: Articles 12 - 13
Labor Code
BOOK ONE
Pre-Employment
ARTICLE 12. Statement of Objectives.
It is the policy of the State:
a) To promote and maintain a state of full employment through improved manpower
training, allocation and utilization;
b) To protect every citizen desiring to work locally or overseas by securing for him
the best possible terms and conditions of employment;
c) To facilitate a free choice of available employment by persons seeking work in
conformity with the national interest;
d) To facilitate and regulate the movement of workers in conformity with the
national interest;
e) To regulate the employment of aliens, including the establishment of a
registration and/or work permit system;
f) To strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of workers,
locally and overseas, to serve national development objectives;
g) To insure careful selection of Filipino workers for overseas employment in order
to protect the good name of the Philippines abroad.
TITLE I
Recruitment and Placement of Workers
CHAPTER I
General Provisions
ARTICLE 13. Definitions. —
(a) "Worker" means any member of the labor force, whether employed or
unemployed.
(b) "Recruitment and placement" refers to any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring or procuring workers, and includes
referrals, contract services, promising or advertising for employment, locally or
abroad, whether for profit or not: Provided, 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.
(c) "Private fee-charging employment agency" means any person or entity engaged
in recruitment and placement of workers for a fee which is charged, directly or
indirectly, from the workers or employers or both.
(d) "License" means a document issued by the Department of Labor authorizing a
person or entity to operate a private employment agency.
(e) "Private recruitment entity" means any person or association engaged in the
recruitment and placement of workers, locally or overseas, without charging,
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directly or indirectly, any fee from the workers or employers.
(f) "Authority" means a document issued by the Department of Labor authorizing a
person or association to engage in recruitment and placement activities as a private
recruitment entity.
(g) "Seaman" means any person employed in a vessel engaged in maritime navigation.
(h) "Overseas employment" means employment of a worker outside the Philippines.
(i) "Emigrant" means any person, worker or otherwise, who emigrates to a foreign
country by virtue of an immigrant visa or resident permit or its equivalent in the
country of destination.
R.A. 8042 (Migrant Workers and Overseas Filipino Act): Secs. 2 - 5
Omnibus Rules Implementing R.A. 8042, secs. 1 - 2
SECTION 2. Declaration of Policies. —
(a) In the pursuit of an independent foreign policy and while considering national
sovereignty, territorial integrity, national interest and the right to self-determination
paramount in its relations with other states, the State shall, at all times, uphold the
dignity of its citizens whether in country or overseas, in general, and Filipino migrant
workers, in particular.
(b) The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities
for all. Towards this end, the State shall provide adequate and timely social, economic
and legal services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the
national economy through their foreign exchange remittances, the State does not
promote overseas employment as a means to sustain economic growth and achieve
national development. The existence of the overseas employment program rests solely
on the assurance that the dignity and fundamental human rights and freedoms of the
Filipino citizen shall not, at any time, be compromised or violated. The State,
therefore, shall continuously create local employment opportunities and promote the
equitable distribution of wealth and the benefits of development.
(d) The State affirms the fundamental equality before the law of women and men and the
significant role of women in nation-building. Recognizing the contribution of overseas
migrant women workers and their particular vulnerabilities, the State shall apply
gender sensitive criteria in the formulation and implementation of policies and
programs affecting migrant workers and the composition of bodies tasked for the
welfare of migrant workers.
(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall
not be denied to any person by reason of poverty. In this regard, it is imperative that an
effective mechanism be instituted to ensure that the rights and interest of distressed
overseas Filipinos, in general, and Filipino migrant workers, in particular, documented
or undocumented, are adequately protected and safeguarded.
(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the
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democratic decision-making processes of the State and to be represented in institutions
relevant to overseas employment is recognized and guaranteed.
(g) The State recognizes that the ultimate protection to all migrant workers is the
possession of skills. Pursuant to this and as soon as practicable, the government shall
deploy and/or allow the deployment only of skilled Filipino workers.
(h) Non-governmental organizations, duly recognized as legitimate, are partners of the
State in the protection of Filipino migrant workers and in the promotion of their
welfare. The State shall cooperate with them in a spirit of trust and mutual respect.
(i) Government fees and other administrative costs of recruitment, introduction,
placement and assistance to migrant workers shall be rendered free without prejudice
to the provision of Section 36 hereof.
Nonetheless, the deployment of Filipino overseas workers, whether land-based or sea-
based, by local service contractors and manning agencies employing them shall be
encouraged. Appropriate incentives may be extended to them.
OMNIBUS RULES IMPLEMENTING RA 8042
I. General Policy Statement
SECTION 1. Declaration of Policies. —
(a) In the pursuit of an independent foreign policy and while considering national sovereignty,
territorial integrity, national interest and the right to self-determination paramount in its
relations with other states, the State shall, at all times, uphold the dignity of its citizens
whether in the country or overseas, in general, and Filipino migrant workers, in particular.
(b) The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
Towards this end, the State shall provide adequate and timely social, economic and legal
services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the national
economy through their foreign exchange remittances, the State does not promote overseas
employment as a means to sustain economic growth and achieve national development. The
existence of the overseas employment program rests solely on the assurance that the dignity
and fundamental human rights and freedoms of the Filipino citizens shall not, at any time, be
compromised or violated. The State, therefore, shall continuously create local employment
opportunities and promote the equitable distribution of wealth and the benefits of
development.
(d) The State affirms the fundamental equality before the law of women and men and the
significant role of women in nation-building. Recognizing the contribution of women migrant
workers and their particular vulnerabilities, the State shall apply gender sensitive criteria in the
formulation and implementation of policies and programs affecting migrant workers and the
composition of bodies tasked for the welfare of migrant workers.
(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not
be denied to any person by reason of poverty. In this regard, it is imperative that an effective
mechanism be instituted to ensure that the rights and interest of distressed overseas Filipinos,
in general, and Filipino migrant workers, in particular, documented or undocumented, are
adequately protected and safeguarded.
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(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the
democratic decision-making process of the State and to be represented in institutions relevant
to overseas employment is recognized and guaranteed.
(g) The State recognizes that the ultimate protection to all migrant workers is the possession of
skills.
(h) Non-governmental organizations, duly recognized as legitimate, are partners of the States
in the protection of Filipino migrant workers and in the promotion of their welfare. The State
shall cooperate with them in the spirit of trust and mutual respect.
SECTION 3. Definitions. —
For purposes of this Act:
(a) "Migrant worker" refers to a person who is to be engaged, is engaged or has been
engaged in a remunerated activity in a state of which he or she is not a legal resident;
to be used interchangeably with overseas Filipino worker.
(b) "Gender-sensitivity" shall mean cognizance of the inequalities and inequities
prevalent in society between women and men and a commitment to address issues
with concern for the respective interests of the sexes.
(c) "Overseas Filipinos" refers to dependents of migrant workers and other Filipino
nationals abroad who are in distress as mentioned in Sections 24 and 26 of this Act.
OMNIBUS RULES IMPLEMENTING RA 8042
II. Definitions of Terms
SECTION 2. Definitions. —
(a) Migrant Worker or Overseas Filipino Workers — a person who is to be engaged, is
engaged, or has been engaged in a remunerated activity in a state of which he or she is not a
legal resident. A person "to be engaged in a remunerated activity" refers to an applicant
worker who has been promised or assured employment overseas and acting on such promise
or assurance sustains damage and/or injury.
(b) Overseas Filipino — are migrant workers, other Filipino nationals and their dependents
abroad.
(c) Overseas Filipino in distress — Overseas Filipinos as defined in Section 3(c) of the Act
shall be deemed in distress in cases where they have valid medical, psychological or legal
assistance problems requiring treatment, hospitalization, counseling, legal representation as
specified in Sections 24 and 26 or any other kind of intervention with the authorities in the
country where they are found.
(d) Legal Resident — a person who has obtained permanent residency status in accordance
with the law of the host country. cdasia
(e) Documented Migrant Workers —
1. those who possess valid passports and visas or permits to stay in the host country
and whose contracts of employment have been processed by the POEA if required
by law or regulation; or
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2. those registered by the Migrant Workers and Other Overseas Filipinos Resource (q) DFA — the Department of Foreign Affairs.
Center or by the Embassy.
(r) DOLE — the Department of Labor and Employment.
Those who do not fall under the preceding paragraph are considered undocumented migrants
workers.

(f) Undocumented Filipinos — (s) POEA — the Philippine Overseas Employment Administration.

1. Those who acquired their passports through fraud or misrepresentation; (t) OWWA — the Overseas Workers Welfare Administration.
2. Those who possess expired visas or permits to stay;
3. Those who have no travel document whatsoever; and (u) NLRC — the National Labor Relations Commission.
4. Those who have valid but inappropriate visas.
(v) BLE — the Bureau of Local Employment.
(g) Gender Sensitivity — cognizance of the inequalities and inequities prevalent in society
between women and men and a commitment to address issues with concern for the respective (w) TESDA — the Technical Education and Skills Development Authority.
interest of the sexes.
(x) DOJ — the Department of Justice.
(h) Legal Assistance — includes, in appropriate cases, giving legal advice, active participation
in litigations whenever allowed by local laws, hiring of private lawyers, documentation (y) DOST — the Department of Science and Technology.
assistance, payment of bail bonds, court fees and other litigation expenses.
I. Deployment
(i) Bonafide Non-Government Organizations (NGOs) — non-governmental organizations duly
SECTION 4. Deployment of Migrant Workers.
registered with appropriate Philippine government agencies which are active partners of the
The State shall deploy overseas Filipino workers only in countries where the rights of
Philippine Government in the protection of Filipino migrant workers and the promotion of
Filipino migrant workers are protected. The government recognizes any of the following as
their welfare.
a guarantee on the part of the receiving country for the protection and the rights of overseas
Filipino workers:
(j) Skilled Workers — those who have obtained an academic degree or sufficient training or
(a) It has existing labor and social laws protecting the rights of migrant workers;
experience in the job for which they are applying, as may be determined by the Secretary of
(b) It is a signatory to multilateral conventions, declarations or resolutions relating to
Labor and Employment.
the protection of migrant workers;
(c) It has concluded a bilateral agreement or arrangement with the government
(k) Underage Migrant Workers — those who are below 18 years or below the minimum age
protecting the rights of overseas Filipino workers; and
requirement for overseas employment as determined by the Secretary of Labor and
(d) It is taking positive, concrete measures to protect the rights of migrant workers.
Employment.
SECTION 5. Termination or Ban on Deployment. — Notwithstanding the provisions of
(l) Employment Agency — any person, partnership or corporation duly licensed by the
Section 4 hereof, the government, in pursuit of the national interest or when public welfare
Secretary of Labor and Employment to engage in the recruitment and placement of workers
so requires, may, at any time, terminate or impose a ban on the deployment of migrant
for overseas employment for a fee which is charged, directly or indirectly, from the workers or
workers.
employers or both.

(m) Manning Agency — any person, partnership or corporation duly licensed by the Secretary 1991 POEA Rules: Book I, Rules I – II
of Labor and Employment to engage in the recruitment and placement of seafarers for vessels
plying international waters and for related maritime activities.
RULES AND REGULATIONS GOVERNING OVERSEAS EMPLOYMENT
(n) Service Contractor — any person, partnership or corporation duly licensed by the BOOK I
Secretary of Labor and Employment to recruit workers for its accredited projects or contracts General Policy
overseas. RULE I
General Statement of Policy
(o) Labor Code — Presidential Decree No. 442, as amended. It shall be the policy of the Administration to:
a) Promote and develop overseas employment opportunities in cooperation with relevant
(p) Act — the "Migrant Workers and Overseas Filipinos Act of 1995," to be used government institutions and the private sector;
interchangeably with the "R.A. 8042." b) Establish the environment conducive to the continued operations of legitimate,

102

responsible and professional private agencies;
c) Afford protection to Filipino workers and their families, promote their interests and
safeguard their welfare; and
d) Develop and implement programs for the effective monitoring of returning contract
workers promoting their re-training and re-employment or their smooth re-integration
into the mainstream of the national economy.
RULE II
Definition of Terms
For purposes of these Rules, the following terms are defined as follows:
a) Administration — the Philippine Overseas Employment Administration (POEA).
b) Administrator — the Administrator of the POEA.
c) Agency — a private employment or a manning agency as defined herein.
d) Allottee — any person named or designated by the overseas contract workers as the
recipient of his remittance to the Philippines.
e) Balik-Manggagawa (Vacationing Worker) — a landbased contract worker who is on a
vacation or on an emergency leave and who is returning to the same worksite to
resume his employment.
f) Beneficiary — the person/s to whom compensation benefits due under an overseas
employment contract are payable by operation of law or those to whom proceeds of a
life or accident insurance are likewise payable.
g) Center — the POEA Regional Center in Cebu and such other regional centers as may
hereinafter be established.
h) Code — the Labor Code of the Philippines as amended.
i) Collective Bargaining Agreement — the negotiated contract between a legitimate
labor organization and the employer concerning wages, hours of work and all other
terms and conditions of employment in a bargaining unit, including mandatory
provisions for grievance and arbitration machineries.
j) Contract Worker — any person working or who has worked overseas under a valid
employment contract.
k) Department — the Department of Labor and Employment (DOLE).
l) Directorate — the executive body of the Administration composed of its
Administrator, Deputy Administrators and Directors as defined herein.
m) Director-LRO — the Director of the Licensing and Regulation Office.
n) Director-PSO — The Director of the Pre-Employment Services Office.
o) Director-AO — the Director of the Adjudication Office.
p) Director-WEO — the Director of the Welfare and Employment Office.
q) Employer — any person, partnership or corporation, whether local or foreign, directly
engaging the services of Filipino workers overseas.
r) Foreign Exchange (Forex) Earnings — the earnings in terms of US dollars (US$) or
any other acceptable foreign currency of overseas workers and agencies.
s) Governing Board — the policy-making body of the Administration.
t) Government-to-Government Hiring — recruitment and placement of Filipino workers
by foreign government ministries or instrumentalities through the Administration.
u) Job Fair — an activity conducted outside of an agency's authorized business address
whereby applicants are oriented on employment opportunities and benefits provided
by foreign principals and employers.
v) License — a document issued by the Secretary authorizing a person, partnership or
corporation to operate a private employment agency or a manning agency.
w) Manning Agency — any person, partnership or corporation duly licensed by the
Secretary to recruit seafarers for vessel plying international waters and for related
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maritime activities.
x) Manning Agreement — an agreement entered into by and between the principal and
the licensed manning agency defining the responsibilities of both parties with respect
to the employment of ship personnel for their enrolled vessels.
y) Commission — the National Labor Relations Commission.
z) Name Hire — a worker who is able to secure employment overseas on his own
without the assistance or participation of any agency.
aa) Non-Licensee — any person, partnership or corporation who has not been issued a
valid license to engage in recruitment and placement, or whose license has been
suspended, revoked or cancelled.
bb) One-stop Processing Center — an inter-agency servicing body designed to facilitate
the documentation of contract workers.
cc) Overseas Employment — employment of a worker outside the Philippines including
employment on board vessels plying international waters, covered by a valid
employment contract.
dd) Philippine Shipping Company — any person, partnership or corporation registered
under the laws of the Philippines and duly accredited to engage in overseas shipping
activities by the Maritime Industry Authority (MARINA).
ee) Philippine Registered Vessel — vessels duly registered in the Philippines.
ff) Placement Fee — the amount charged by a private employment agency from a worker
for its services in securing employment.
gg) Principal — any foreign person, partnership or corporation hiring Filipino workers
through an agency.
hh) Private Employment Agency — any person, partnership or corporation engaged in the
recruitment and placement of workers for a fee which is charged, directly or indirectly,
from the workers or employers or both. cdtai
a. Recruitment Agreement — the agreement entered into by and between the
foreign principal and the licensed private employment agency defining the
responsibilities of both parties with respect to the employment of workers
for their overseas projects.
ii) Recruitment and Placement — any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers and includes referrals, contract
services, promising or advertising for employment, locally or abroad, whether for
profit or not; provided, 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.
jj) Regional Director — the head of the Regional Offices of the Department.
kk) Regional Extension Unit — the field offices of the Administration in designated
regions in the Philippines.
ll) Regional Labor Center (RLC) — the regional field office of the Administration.
mm) Regional Office — the regional office of the Department of Labor and Employment.
nn) Remittance — the amount or portion of the foreign exchange earnings sent by the
worker to the Philippines.
oo) Secretary — the Secretary of Labor and Employment.
pp) Service Fee — the amount charged by a licensee from its foreign employer-principal
as payment for actual services rendered in relation to the recruitment and employment
of workers for said principal.
qq) Valid Employment Contract — a written agreement entered into by and between the
employer and/or the local agency and the overseas contract worker containing the
terms and conditions of employment that are in consonance with the master
employment contract as approved by the Administration.
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rr) ss. Verification — the action of labor attaché or any other officer designated by the workers’ associations, and other stakeholders, as partners of the State in the protection
Secretary of Labor and Employment in the Philippine Embassy or Consulate, in of Overseas Filipino Workers and the promotion of their welfare, and to cooperate with
reviewing employment documents of Filipino nationals with the view to establish the them in a spirit of trust, mutual respect and tripartism; and
existence of the employing company, its ability to hire workers at the prescribed rates, 15) To strengthen conciliation and mediation as primary modes of dispute resolution.
at desirable working conditions consistent with the standards prescribed by the
Administration and the terms and conditions prevailing in the country of employment. RULE II
Definition of Terms
For purposes of these Rules, the following terms are defined as follows:
[2016: UPDATE-although Attorney assigned 1991] 1. Accreditation — refers to the grant of authority by the Administration to a foreign
principal/employer to recruit and hire Filipino workers through a licensed recruitment
agency for overseas employment.
REVISED POEA RULES AND REGULATIONS
2. Administration — refers to the Philippine Overseas Employment Administration
GOVERNING THE RECRUITMENT AND EMPLOYMENT OF
(POEA).
LANDBASED OVERSEAS FILIPINO WORKERS OF 2016
3. Administrator — refers to the Administrator of the POEA.
PART I
4. Authentication — refers to the attestation by the Philippine Consular Office or
General Provisions
competent authority of the genuineness of the signature appearing on the document, for
RULE I
the purpose of identifying a specific document and giving credence to the official act of
Statement of Policy
the notary public or certifying officers thereon for use, if and when required, as an
It is the policy of the Administration:
instrument of evidence in a foreign country.
1) To uphold the dignity and fundamental human rights of Overseas Filipino Workers and
5. Contracted worker — refers to an Overseas Filipino Worker with employment
promote full employment and equality of employment opportunities for all;
contract/offer of employment already processed by the POEA for overseas
2) To protect every citizen desiring to work overseas by securing the best possible terms
deployment, whether as an agencyhire or a direct-hire.
and conditions of employment;
6. Derogatory record — refers to the resolution on the finding of probable cause by the
3) To allow the deployment of Overseas Filipino Workers only in countries where their
Department of Justice for illegal recruitment or for other related crimes or offenses, or
rights are protected;
a licensed recruitment agency whose license had been cancelled or revoked by the
4) To provide an effective gender-sensitive mechanism that can adequately protect and
POEA, including its proprietors, partners or officers, directors, and employees
safeguard the rights and interest of Overseas Filipino Workers;
responsible for the commission of the crime or offense. This includes a certification
5) To educate Overseas Filipino Workers through dissemination of information, not only
from the NBI that the person has a derogatory record.
of their rights as workers but also of their rights as human beings, as well as instruct
7. DOLE — refers to the Department of Labor and Employment.
and guide the workers on how to assert their rights, and provide available mechanisms
8. Domestic worker— refers to any person engaged in domestic work (work performed in
to redress violations of their rights;
or for a household) within an employment relationship.
6) To ensure careful selection of Filipino workers for overseas employment in order to
9. DFA — refers to the Department of Foreign Affairs.
protect the good name of the Philippines abroad;
10. Documentation cost — refers to the actual costs incurred in the documentation of an
7) To institute a system to guarantee that Overseas Filipino Workers possess the
applicant worker in relation to his/her application for overseas employment.
necessary skills, knowledge and experience for their overseas jobs;
11. Employer — refers to a person, partnership, or corporation that directly signs an
8) To recognize the participation of the private sector in the ethical recruitment and
employment contract, and employs, and pays salaries and benefits of workers, as well
placement of Overseas Filipino Workers to serve national development objectives;
as repatriates hired Overseas Filipino Workers.
9) To regulate private sector participation in the recruitment and placement of workers for
12. Employment Contract/Offer of Employment — refers to an individual written
overseas employment;
agreement between the principal/employer and the worker who is hired through a
10) To support programs for the reintegration of returning Overseas Filipino Workers into
licensed recruitment agency or through the Administration, containing the minimum
Philippine society;
terms and conditions of employment as provided under these Rules.
11) To pursue, with the active participation of the private sector, the creation of an
13. Foreign Placement Agency or FPA — refers to any single proprietor, partnership or
environment conducive to the overseas employment program in order to maximize
corporation duly licensed in the host country to engage in the recruitment of foreign
opportunities for employment generation, facilitation, enhancement and preservation;
workers for placement with their clients.
12) To promote and support the establishment of a shared government information system
14. Foreign Service Contractor/Staffing Agency — refers to any single proprietor,
on the overseas employment program, using a computer database to allow verification
partnership or corporation duly licensed in the host country to recruit foreign workers
and freeflow of data exchanges;
for its projects or for the projects of its clients, and remains as the employer of the
13) To formulate and implement, in coordination with appropriate entities concerned, a
deployed workers.
system of promoting and monitoring the overseas employment of Filipino workers,
15. Jobs Fair — refers to an employment facilitation service that is a venue for licensed
taking into consideration their welfare and the domestic manpower requirements;
recruitment agencies to advertise job vacancies for the purpose of recruiting qualified
14) To recognize recruitment agencies, non-governmental organizations, trade unions,
job applicants.

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16. Jobsite — refers to the country/territory of employment as indicated in the POEA-
approved employment contract.
17. Joint and Several Liability — refers to the nature of liability of the principal/employer
and the licensed recruitment agency, for any and all claims arising out of the
implementation of the employment contract involving Overseas Filipino Workers. It
shall likewise refer to the nature of liability of partners, or officers and directors with
the partnership or corporation over claims arising from an employer-employee
relationship.
18. LAC — refers to the Labor Assistance Center of the POEA located in international
airports and other exit points.
19. LOA — refers to the Letter of Authority issued by the Administration authorizing an
accredited foreign principal or its representative/s to participate in the screening,
interview and selection of applicants for their approved job orders, in places outside the
registered business address of the licensed recruitment agency as indicated in the
Special Recruitment Authority.
20. License — refers to the document issued by the Secretary or his/her duly authorized
representative authorizing a person, partnership or corporation to operate a recruitment
agency.
21. Licensed Recruitment Agency — refers to any person, partnership or corporation duly
authorized to engage in the recruitment and placement of workers for overseas
employment.
22. Master Employment Contract — refers to the model employment agreement submitted
by the principal/employer as defined under these Rules, which contains the terms and
conditions of employment of each worker to be hired by such principal/employer, with
such contract to be duly verified by the POLO or authenticated by the Philippine
Embassy/Consulate and approved by the POEA.
23. NBI — refers to the National Bureau of Investigation.
24. NLRC — refers to the National Labor Relations Commission.
25. Non-licensee — refers to a person, sole proprietor, partnership or corporation without a
license to engage in the recruitment and placement of Overseas Filipino Workers, or a
licensed recruitment agency whose license has been revoked, cancelled, expired or
delisted from the roll of licensed recruitment agencies.
26. Overseas Employment Certificate (OEC) — refers to the document issued to Overseas
Filipino Workers, which serves as proof that the worker has been processed by the
Administration or POLO.
27. Overseas Filipino Worker or Migrant Worker — refers to a person who is to be
engaged, is engaged, or has been engaged in a remunerated activity in a State or
country of which the worker is not a citizen. A “person to be engaged in a remunerated
activity” refers to an applicant worker who has been promised or assured employment
overseas.
28. OWWA — refers to the Overseas Workers Welfare Administration.
29. PAOS — refers to the Post-Arrival Orientation Seminar.
30. PDOS — refers to the Pre-Departure Orientation Seminar.
31. PEOS — refers to the Pre-Employment Orientation Seminar.
32. Placement Fee — refers to any and all amounts charged by a recruitment agency from
a worker for its recruitment and placement services as prescribed by the Secretary of
Labor and Employment.
33. POLO — refers to the Philippine Overseas Labor Office.
34. Principal — refers to the employer, or to a foreign placement agency or a foreign
service contractor/staffing agency, hiring Filipino workers for overseas employment
through a licensed recruitment agency or through the Administration.
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35. POCB — refers to the Philippine Overseas Construction Board.
36. Recruitment Agreement — refers to an agreement by and between the principal and the
licensed recruitment agency or the Administration defining their rights and obligations
on the recruitment and employment of workers.
37. Recruitment and Placement — refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers, and includes referring, contracting
services, promising or advertising for employment abroad, whether for profit or not.
38. Registration of Worker — refers to the act of entering in the official records of the
Administration the names of overseas job seekers and contracted workers.
39. Regular/Documented Overseas Filipino Worker — refers to one:
a.who possesses a valid passport and appropriate visa or permit to stay and work in the
receiving country; and
b.whose contract of employment has been processed by the POEA or the POLO.
40. Returning Worker or Balik-Manggagawa— refers to an Overseas Filipino Worker who
has served or is serving his/her employment contract and is:
a.returning to the same employer and the same job site; or
b.returning to the same employer in a new job site. It shall also include an Overseas Filipino
Worker who has started employment with a new employer and is returning to the said
employer.
41. SEC — refers to the Securities and Exchange Commission.
42. Service Fee — refers to the amount paid to a licensed recruitment agency or to the
Administration (in the case of government-to-government hired workers) by foreign
principals/employers, as payment for actual services rendered in relation to the
recruitment and placement of workers.
43. Special Recruitment Authority — refers to the authority granted to a licensed
recruitment agency to conduct recruitment outside of its registered business address.
44. Standard Employment Contract — refers to the POEA-prescribed contract containing
the minimum terms and conditions of employment.
45. TESDA — refers to the Technical Education and Skills Development Authority.
46. Underage Migrant Worker —refers to one who is below the minimum age requirement
for overseas employment as prescribed by the POEA Governing Board.
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B. RECRUITMENT AND PLACEMENT
1. Definition; Illegal Recruitment; Prohibited Acts
Labor Code: Articles 13(b), 34, 35, 38, 39
Labor Code
ART. 13. Definitions.
xxx
(b) "Recruitment and placement" refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers, and includes referrals, contract services,
promising or advertising for employment, locally or abroad, whether for profit or not:
Provided, 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.
ART. 34. Prohibited Practices.
It shall be unlawful for any individual, entity, licensee, or holder of authority:
A. To charge or accept, directly or indirectly, any amount greater than that specified in
the schedule of allowable fees prescribed by the Secretary of Labor, or to make a
worker pay any amount greater than that actually received by him as a loan or
advance;
B. To furnish or publish any false notice or information or document in relation to
recruitment or employment;
C. To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code;
D. To induce or attempt to induce a worker already employed to quit his employment in
order to offer him to another unless the transfer is designed to liberate the worker
from oppressive terms and conditions of employment;
E. To influence or to attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency;
F. To engage in the recruitment or placement of workers in jobs harmful to public health
or morality or to the dignity of the Republic of the Philippines;
G. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly
authorized representatives;
H. To fail to file reports on the status of employment, placement vacancies, remittance
of foreign exchange earnings, separation from jobs, departures and such other matters
or information as may be required by the Secretary of Labor;
I. To substitute or alter employment contracts approved and verified by the Department
of Labor from the time of actual signing thereof by the parties up to and including the
periods of expiration of the same without the approval of the Secretary of Labor;
J. To become an officer or member of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the management of a travel agency;
and
K. To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and
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its implementing rules and regulations.
(Note: These prohibited acts also constitute illegal recruitment as redefined by R.A. No.
8042.)
Labor Code
ART. 35. Suspension and/or Cancellation of License or Authority.
The Minister of Labor shall have the power to suspend or cancel any license or authority to
recruit employees for overseas employment for violation of rules and regulations issued by
the Ministry of Labor, the Overseas Employment Development Board, or for violation of
the provisions of this and other applicable laws, General Orders and Letters of Instructions.
(Note: Ministry of Labor is now the Department of Labor and Employment. The OEDB has
been replaced by the POEA. General Orders and Letters of Instruction refer to issuances by
the President of the Republic in his capacity as Commander-In-Chief of the Armed Forces of
the Philippines.)
Labor Code
ART. 38. Illegal Recruitment.
(a) Any recruitment activities, including the prohibited practices enumerated under Article
34 of this Code, to be undertaken by non-licensees or non-holders of authority, shall be
deemed illegal and punishable under Article 39 of this Code. The Department of Labor and
Employment or any law enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered
an offense involving economic sabotage and shall be penalized in accordance with Article
39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3)
or more persons conspiring and/or confederating with one another in carrying out any
unlawful or illegal transaction, enterprise or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed committed in large scale if committed against three
(3) or more persons individually or as a group.
(c) The Secretary of Labor and Employment or his duly authorized representatives shall
have the power to cause the arrest and detention of such non- licensee or non-holder of
authority if after investigation it is determined that his activities constitute a danger to
national security and public order or will lead to further exploitation of job-seekers. The
Secretary shall order the search of the office or premises and seizure of documents,
paraphernalia, properties and other implements used in illegal recruitment activities and the
closure of companies, establishments and entities found to be engaged in the recruitment of
workers for overseas employment, without having been licensed or authorized to do so.
(Note: Article 38 par. (c) was declared unconstitutional by the Supreme Court in Salazar v.
Achacoso, G. R. No. 81510 (1990).)
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deployment does not actually take place without the worker’s fault. Illegal recruitment
when committed by a syndicate or in large scale shall be considered as offense
R.A. 8042: The Migrant Workers and Overseas Filipinos Act of 1995 involving economic sabotage.
Sec. 6. DEFINITIONS. – For purposes of this Act, illegal recruitment shall mean any act of
canvassing, enlisting, contracting, transporting, utilizing, hiring, procuring workers and
includes referring, contact services, promising or advertising for employment abroad, whether Illegal recruitment is deemed committed by a syndicate carried out by a group of three (3) or
for profit or not, when undertaken by a non-license or non-holder of authority contemplated more persons conspiring or confederating with one another. It is deemed committed in large
under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor scale if committed against three (3) or more persons individually or as a group.
Code of the Philippines. Provided, that such non-license or non-holder, who, in any manner,
offers or promises for a fee employment abroad to two or more persons shall be deemed so The persons criminally liable for the above offenses are the principals, accomplices and
engaged. It shall likewise include the following acts, whether committed by any persons, accessories. In case of juridical persons, the officers having control, management or direction
whether a non-licensee, non-holder, licensee or holder of authority. of their business shall be liable.
A. To charge or accept directly or indirectly any amount greater than the specified in the
schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to
make a worker pay any amount greater than that actually received by him as a loan or Rules Implementing of R.A. 8042
advance; Section 9. Definition.
For purposes of the Act, illegal recruitment shall mean any act of canvassing, enlisting,
B. To furnish or publish any false notice or information or document in relation to
contracting, transporting, utilizing, hiring, or procuring workers and includes referring,
recruitment or employment; contract services, promising or advertising for employment abroad, whether for profit or not,
C. To give any false notice, testimony, information or document or commit any act of when undertaken by a non-licensee or non-holder of authority contemplated under Article
misrepresentation for the purpose of securing a license or authority under the Labor 13(f) of the Labor Code of the Philippines: Provided, That any such non-licensee or non-
Code; holder who, in any manner, offers or promises for a fee employment abroad to two or more
D. To induce or attempt to induce a worker already employed to quit his employment in persons shall be deemed so engaged. It shall likewise include the following acts committed by
order to offer him another unless the transfer is designed to liberate a worker from any person whether or not a holder of a license or authority:
A. To charge or accept directly or indirectly any amount Greater than !ha! specified in the
oppressive terms and conditions of employment;
schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to
E. To influence or attempt to influence any persons or entity not to employ any worker
make a worker pay the recruiter or its agents any amount greater than that actually
who has not applied for employment through his agency;
loaned or advanced to him;
F. To engage in the recruitment of placement of workers in jobs harmful to public health or
B. To furnish or publish any false notice or information or document in relation to
morality or to dignity of the Republic of the Philippines;
recruitment or employment;
G. To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment
C. To give any false notice, testimony, information or document pr commit any act of
or by his duly authorized representative;
misrepresentation for the purpose of securing a license or authority under the Labor
H. To fail to submit reports on the status of employment, placement vacancies, remittances
Code;
of foreign exchange earnings, separations from jobs, departures and such other matters
D. To induce or attempt to induce a worker already employed to quit his employment in
or information as may be required by the Secretary of Labor and Employment;
order to offer him another unless the transfer is designed to liberate a worker from
I. To substitute or alter to the prejudice of the worker, employment contracts approved and
oppressive terms and conditions of employment;
verified by the Department of Labor and Employment from the time of actual signing
E. To influence or attempt to influence any person or entity not to employ any worker who
thereof by the parties up to and including the period of the expiration of the same
has not applied for employment through his agency;
without the approval of the Department of Labor and Employment;
F. To engage in the recruitment or placement of workers in jobs harmful to public health or
J. For an officer or agent of a recruitment or placement agency to become an officer or
morality or to the dignity of the Republic of the Philippines as may be prohibited by law
member of the Board of any corporation engaged in travel agency or to be engaged
or duly constituted authority;
directly on indirectly in the management of a travel agency;
G. To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment
K. To withhold or deny travel documents from applicant workers before departure for
or by his/her duly authorized representative;
monetary or financial considerations other than those authorized under the Labor Code
H. To fail to submit reports on the status of employment, placement vacancies, remittance
and its implementing rules and regulations;
of foreign exchange earnings, separation from jobs, departures and such other matters or
L. Failure to actually deploy without valid reasons as determined by the Department of
information as may be required by the Secretary of Labor and Employment under
Labor and Employment; and
penalty of law;
M. Failure to reimburse expenses incurred by the workers in connection with his
documentation and processing for purposes of deployment, in cases where the

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I. To substitute or alter to the prejudice of the worker, employment contracts approved and
verified by the DOLE from the time of actual signing thereof by the parties up to and
including the period of the expiration of the same without the approval of the DOLE;
J. For an officer or agent of a recruitment or placement agency to became officer or
member of the Board of any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel agency;
K. To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under the Labor Code
and its implementing rules and regulations;
L. To fail to actually deploy without valid reason as determined by the DOLE; and
M. To fail to reimburse expenses incurred by the worker in connection with his/her
documentation and processing for purposes of deployment, in cases where the
deployment does not actually take place without the workers fault.
Section 10. Crime Involving Economic Sabotage.
Illegal recruitment when committed by a syndicate or in large scale shall be considered an
offense involving economic sabotage. Illegal recruitment is deemed committed by a syndicate
if carried out by a group of three (3) or more persons conspiring or confederating with one
another. it is deemed committed in large scale if committed against three (3) or more persons
individually or as a group.
Section 11. Persons Responsible.
The persons criminally liable for the above offenses are the principals, accomplices and
accessories. In case of juridical persons, the officer having control, management or direction
of their business shall be liable.
Labor Code
ART. 39. Penalties.
(a) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos
(P100,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as
defined herein;
(b) Any licensee or holder of authority found violating or causing another to violate any
provision of this Title or its implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than two years nor more than five
years or a fine of not less than P10,000 nor more than P50,000, or both such imprisonment
and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title found
violating any provision thereof or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not less than four years nor more
than eight years or a fine of not less than P20,000 nor more than P100,000 or both such
imprisonment and fine, at the discretion of the court;
(d) If the offender is a corporation, partnership, association or entity, the penalty shall be
imposed upon the officer or officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall, in addition to the penalties
herein prescribed, be deported without further proceedings;
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(e) In every case, conviction shall cause and carry the automatic revocation of the license or
authority and all the permits and privileges granted to such person or entity under this Title,
and the forfeiture of the cash and surety bonds in favor of the Overseas Employment
Development Board or the National Seamen Board, as the case may be, both of which are
authorized to use the same exclusively to promote their objectives.
(Note:
The penalties provided under Article 39 originally apply to both local and overseas
employment. In view of the changes introduced by R.A. No. 8042, illegal recruitment
involving overseas employment is now penalized under the provision of Section 7 of the said
law and Article 39 now stands to cover only cases involving local employment. Thus, for
overseas employment, Section 7 of R.A. No. 8042, as amended, applies.
The OEDB and NSB are both defunct. Forfeiture of cash and surety bonds is now in favor of
the POEA or the Regional Offices of the Department which has jurisdiction over the place
where the private recruitment and placement agency or branch office is located.)
R.A. 8042: The Migrant Workers and Overseas Filipinos Act of 1995
SEC. 7. PENALTIES
(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of
not less than six (6) years and one (1) day but not more than twelve (12) years and a fine not
less than two hundred thousand pesos (P200,000.00) nor more than five hundred thousand
pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not less than five hundred thousand pesos
(P500,000.00) nor more than one million pesos (P1,000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein.
Provided, however, that the maximum penalty shall be imposed if the person illegally
recruited is less than eighteen (18) years of age or committed by a non-licensee or non-holder
of authority.
SEC. 8. PROHIBITION ON OFFICIALS AND EMPLOYEES.
It shall be unlawful for any official or employee of the Department of Labor and Employment,
the Philippine Overseas Employment Administration, or the Overseas Workers Welfare
Administration, or the Department of Foreign Affairs, or other government agencies involved
in the implementation of this Act, or their relatives within the fourth civil degree of
consanguinity or affinity, to engage, directly or indirectly, in the business of recruiting migrant
workers as defined in this Act. The penalties shall be imposed upon them.
Rules Implementing of R.A. 8042
Section 13. Disqualification.
The following personnel shall be prohibited from engaging directly or indirectly in the
business of recruitment of migrant workers;
A. Any official or employee of the DOLE, POEA OWWA, DFA, DOJ and other
government agencies involved in the implementation of this Act, regardless of the status
of his/her employment; and
B. Any of his/her relatives within the fourth civil degree of consanguinity or affinity.
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Any government official or employee found to be violating this Section shall be charged
administratively, according to Civil Service Rules and Regulations without prejudice to
criminal prosecution.

The government agency concerned shall monitor and initiate, upon its initiative or upon the
petition of any private individual, action against erring officials and employees, and/or their
relatives.

SEC. 9. VENUE.
A 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: Provided,
That the court where the criminal action is first filed shall acquire jurisdiction to the exclusion
of other courts. Provided, however, That the aforestated provisions shall also apply to those
criminal actions that have already been filed in court at the time of the effectivity of this Act.

Rules Implementing of R.A. 8042

Section 12. Independent Administrative Action. –
The institution of the criminal action is without prejudice to any administrative action against
the licensee or holder of authority cognizable by the POEA which could proceed
independently of the criminal action.

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3. CONTRACTS by him as a loan or advance;

1991 POEA Rules: Book V, Rule II b) To furnish or publish any false notice or information or document in relation to
BOOK V recruitment or employment;
Market Development and Formulation of Employment Standards c) To give any false notice, testimony, information or document or commit any
RULE II act of misrepresentation for the purpose of securing a license or authority under
Formulation of Employment Standards this Code;
d) To induce or attempt to induce a worker already employed to quit his
SECTION 1. Employment Standards. — The Administration shall determine, formulate
employment in order to offer him to another unless the transfer is designed to
and review employment standards in accordance with the market development and welfare
liberate the worker from oppressive terms and conditions of employment;
objectives of the overseas employment program and the prevailing market conditions.
e) To influence or to attempt to influence any person or entity not to employ any
SECTION 2. Minimum Provisions for Contract. — The following shall be considered the worker who has not applied for employment through his agency;
minimum requirements for contracts of employment: f) To engage in the recruitment or placement of workers in jobs harmful to public
health or morality or to the dignity of the Republic of the Philippines;
a) Guaranteed wages for regular working hours and overtime pay for services
g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his
rendered beyond regular working hours in accordance with the standards
duly authorized representatives;
established by the Administration;
h) To fail to file reports on the status of employment, placement vacancies,
b) Free transportation from point of hire to site of employment and return;
remittance of foreign exchange earnings, separation from jobs, departures and
c) Free emergency medical and dental treatment and facilities;
such other matters or information as may be required by the Secretary of Labor;
d) Just causes for the termination of the contract or of the services of the
i) To substitute or alter employment contracts approved and verified by the
workers;
Department of Labor from the time of actual signing thereof by the parties up
e) Workmen's compensation benefits and war hazard protection;
to and including the periods of expiration of the same without the approval of
f) Repatriation of worker's remains and properties in case of death to the
the Secretary of Labor;
point of hire, or if this is not possible under the circumstances, the proper
j) To become an officer or member of the Board of any corporation engaged in
disposition thereof, upon prior arrangement with the worker's next-of-kin
travel agency or to be engaged directly or indirectly in the management of a
and the nearest Philippine Embassy or Consulate through the Office of the
travel agency; and SDHTEC
Labor Attaché;
k) To withhold or deny travel documents from applicant workers before departure
g) Assistance on remittance of worker's salaries, allowances or allotments to
for monetary or financial considerations other than those authorized under this
his beneficiaries; and
Code and its implementing rules and regulations.
h) Free and adequate board and lodging facilities or compensatory food
allowance at prevailing cost of living standards at the jobsite. (NOTE: These prohibited acts also constitute illegal recruitment)
SECTION 3. Standard Employment Contract. — The Administration shall undertake ARTICLE 35. Suspension and/or Cancellation of License or Authority. — The Minister
development and/or periodic review of region, country and skills specific employment of Labor shall have the power to suspend or cancel any license or authority to recruit
contracts for landbased workers and conduct regular review of standard employment employees for overseas employment for violation of rules and regulations issued by the
contracts (SEC) for seafarers. These contracts shall provide for minimum employment Ministry of Labor, the Overseas Employment Development Board, or for violation of the
standards herein enumerated under Section 2 of this Rule and shall recognize the prevailing provisions of this and other applicable laws, General Orders and Letters of Instructions.
labor and social legislations at the site of employment and international conventions. The
SEC shall set the minimum terms and conditions of employment. All employers and
principals shall adopt the SEC in connection with the hiring of workers without prejudice to
their adoption of other terms and conditions of employment over and above the minimum
standards of the Administration.

Labor Code: Articles 34-35

ARTICLE 34. Prohibited Practices. — It shall be unlawful for any individual, entity,
licensee, or holder of authority:
a) To charge or accept, directly or indirectly, any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of
Labor, or to make a worker pay any amount greater than that actually received

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4. GOVERNMENT MACHINERY
Labor Code: Articles 14 - 21, 24
(note: Arts. 15, 17, 19 have been repealed)
ARTICLE 14. Employment Promotion. — The Secretary of Labor shall have the power and
authority:
a) To organize and establish new employment offices in addition to the existing
employment offices under the Department of Labor as the need arises;
b) To organize and establish a nationwide job clearance and information system to inform
applicants registering with a particular employment office of job opportunities in other
parts of the country as well as job opportunities abroad;
c) To develop and organize a program that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation of workers from
one area to another; and
d) To require any person, establishment, organization or institution to submit such
employment information as may be prescribed by the Secretary of Labor.
ARTICLE 15. Bureau of Employment Services. —
(a) The Bureau of Employment Services shall be primarily responsible for developing and
monitoring a comprehensive employment program. It shall have the power and duty:
1) To formulate and develop plans and programs to implement the employment
promotion objectives of this Title;
2) To establish and maintain a registration and/or licensing system to regulate private
sector participation in the recruitment and placement of workers, locally and
overseas, and to secure the best possible terms and conditions of employment for
Filipino contract workers and compliance therewith under such rules and regulations
as may be issued by the Minister of Labor;
3) To formulate and develop employment programs designed to benefit disadvantaged
groups and communities;
4) To establish and maintain a registration and/or work permit system to regulate the
employment of aliens;
5) To develop a labor market information system in aid of proper manpower and
development planning;
6) To develop a responsive vocational guidance and testing system in aid of proper
human resources allocation; and
7) To maintain a central registry of skills, except seamen.
(b) The regional offices of the Ministry of Labor shall have the original and exclusive
jurisdiction over all matters or cases involving employer-employee relations including money
claims, arising out of or by virtue of any law or contracts involving Filipino workers for
overseas employment except seamen: Provided,That the Bureau of Employment Services
may, in the case of the National Capital Region, exercise such power, whenever the Minister
of Labor deems it appropriate. The decisions of the regional offices of the Bureau of
Employment Services, if so authorized by the Minister of Labor as provided in this Article,
shall be appealable to the National Labor Relations Commission upon the same grounds
provided in Article 223 (now Art. 229) hereof. The decisions of the National Labor Relations
Commission shall be final and unappealable.
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(c) The Minister of Labor shall have the power to impose and collect fees based on rates
recommended by the Bureau of Employment Services. Such fees shall be deposited in the
National Treasury as a special account of the General Fund, for the promotion of the
objectives of the Bureau of Employment Services, subject to the provisions of Section 40 of
Presidential Decree No. 1177.
ARTICLE 16. Private Recruitment. — Except as provided in Chapter II of this Title, no
person or entity other than the public employment offices, shall engage in the recruitment and
placement of workers.
ARTICLE 17. Overseas Employment Development Board. — An Overseas Employment
Development Board is hereby created to undertake, in cooperation with relevant entities and
agencies, a systematic program for overseas employment of Filipino workers in excess of
domestic needs and to protect their rights to fair and equitable employment practices. It shall
have the power and duty:
1) To promote the overseas employment of Filipino workers through a comprehensive
market promotion and development program;
2) To secure the best possible terms and conditions of employment of Filipino contract
workers on a government-to-government basis and to ensure compliance therewith;
3) To recruit and place workers for overseas employment on a government-to-government
arrangement and in such other sectors as policy may dictate; and
4) To act as secretariat for the Board of Trustees of the Welfare and Training Fund for
Overseas Workers.
(NOTE: These functions are now being undertaken by POEA)
ARTICLE 18. Ban on Direct-Hiring. — No employer may hire a Filipino worker for
overseas employment except through the Boards and entities authorized by the Secretary of
Labor. Direct-hiring by members of the diplomatic corps, international organizations and such
other employers as may be allowed by the Secretary of Labor is exempted from this provision.
ARTICLE 19. Office of Emigrant Affairs. —
(a) Pursuant to the national policy to maintain close ties with Filipino migrant communities
and promote their welfare as well as establish a data bank in aid of national manpower policy
formulation, an Office of Emigrant Affairs is hereby created in the Department of Labor. The
Office shall be a unit at the Office of the Secretary and shall initially be manned and operated
by such personnel and through such funding as are available within the Department and its
attached agencies. Thereafter, its appropriation shall be made part of the regular General
Appropriations Decree.
(b) The office shall, among others, promote the well-being of emigrants and maintain their
close link to the homeland by:
1. serving as a liaison with migrant communities;
2. provision of welfare and cultural services;
3. promote and facilitate re-integration of migrants into the national mainstream;
4. promote economic; political and cultural ties with the communities; and
5. generally to undertake such activities as may be appropriate to enhance such cooperative
links.
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ARTICLE 20. National Seamen Board. —

(a) A National Seamen Board is hereby created which shall develop and maintain a
comprehensive program for Filipino seamen employed overseas. It shall have the power and
duty:

1) To provide free placement services for seamen;

2) To regulate and supervise the activities of agents or representatives of shipping
companies in the hiring of seamen for overseas employment and secure the best
possible terms of employment for contract seamen workers and secure compliance
therewith;
3) To maintain a complete registry of all Filipino seamen.

(b) The Board shall have original and exclusive jurisdiction over all matters or cases including
money claims, involving employer-employee relations, arising out of or by virtue of any law
or contracts involving Filipino seamen for overseas employment. The decisions of the Board
shall be appealable to the National Labor Relations Commission upon the same grounds
provided in Article 223 (now 229) hereof. The decisions of the National Labor Relations
Commission shall be final and unappealable.

ARTICLE 21. Foreign Service Role and Participation. —

To provide ample protection to Filipino workers abroad, the labor attachés, the labor reporting
officers duly designated by the Secretary of Labor and the Philippine diplomatic or consular
officials concerned shall, even without prior instruction or advice from the home office,
exercise the power and duty:

a) To provide all Filipino workers within their jurisdiction assistance on all matters arising
out of employment;
b) To insure that Filipino workers are not exploited or discriminated against;
c) To verify and certify as requisite to authentication that the terms and conditions of
employment in contracts involving Filipino workers are in accordance with the Labor
Code and rules and regulations of the Overseas Employment Development Board and
National Seamen Board;
d) To make continuing studies or researches and recommendations on the various aspects of
the employment market within their jurisdiction;
e) To gather and analyze information on the employment situation and its probable trends,
and to make such information available; and
f) To perform such other duties as may be required of them from time to time.

ARTICLE 24. Boards to Issue Rules and Collect Fees. —

The Boards shall issue appropriate rules and regulations to carry out their functions. They
shall have the power to impose and collect fees from employers concerned, which shall be
deposited in the respective accounts of said Boards and be used by them exclusively to
promote their objectives.

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P.D. 1694 (OWWA)
ORGANIZATION AND ADMINISTRATION OF THE WELFARE FUND FOR
OVERSEAS WORKERS
WHEREAS, the overseas employment development of the Government undertaken through
the Ministry of Labor has generated an explosion of the presence abroad of Filipino
workers, now estimated to be around 1.7 million in 107 countries of the world;
WHEREAS, there is every indication that the overseas demand for Filipino workers would
continue to increase in the coming years;
WHEREAS, because of the volatile situation in many countries hosting this labor force, the
Government is continually under stress in efforts to provide overseas Filipino workers
adequate protection;
WHEREAS, in response to the distressed conditions of many of these workers, the
Government, under Letter of Instructions No. 537 issued on May 1, 1977, authorized the
creation in the Ministry of Labor of a Welfare and Training Fund for Overseas Workers to
be funded with contributions from overseas employers of Filipino workers;
WHEREAS, it is deemed that the objectives and purposes of the Fund as set forth in LOI
No. 537 can best be served by now formalizing operations into a comprehensive Welfare
Fund;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue
of the powers vested in me by the Constitution, do hereby Order and Decree:
SECTION 1. Welfare Fund for Overseas Workers. — There is hereby created a
"Welfare Fund for Overseas Workers," hereinafter referred to as the Welfund which shall be
used for the purpose of providing social and welfare services to Filipino overseas workers,
including insurance coverage, legal assistance, placement assistance, and remittance
services.
SECTION 2. Fund Source. — All contributions to the Welfare and Training Fund
collected pursuant to Letter of Instructions No. 537 issued on May 1, 1977 shall be
transferred to the Welfund. Fees and other charges may be imposed by the Overseas
Employment Development Board, the Bureau of Employment Services, and the National
Seamen Board, subject to the approval of the Minister of Finance. Such fees, charges and
other collections shall accrue to the Welfare and Training Fund.
SECTION 3. Administration. — The Welfund shall be administered by a Board of
Trustees consisting of the Minister of Labor as Chairman, the Deputy Minister of Labor as
Vice Chairman, and the Executive Director of the Overseas Employment Development
Board, the Executive Director of the National Seamen Board, the Director of the Bureau of
Employment Services, the Administrator of the Welfund, and one representative each from
the management and labor sectors who shall be appointed by the President, as members.
An Administrator shall be appointed by the President upon recommendation of the Minister
of Labor, who shall have the qualifications, rank and compensation of a Bureau Director.
SECTION 4. Responsibility and Powers. — The Board of Trustees of the Welfund shall
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have the following responsibilities and powers:
(a) To formulate and implement measures and programs to attain the fund's
objectives and purposes;
(b) To enter into agreements and contracts in connection with its operations and
objectives;
(c) To manage Fund resources subject to the provisions of Sec. 5 hereof; and
(d) To issue rules and regulations to carry out the objectives and purposes of the
Welfund and the provisions of this Decree.
SECTION 5. Fund Management. — The Welfund shall be recorded as Special Account in
the General Fund and transactions in it shall be subject to such rules and regulations as may
be formulated by the Minister of Finance, who shall act in consultation with the Minister of
Labor and the Minister of the Budget. A maximum of five per cent (5%) of any investment
income earned by the Fund may be utilized for operational expenses, except as may be
approved by the President. Such operational expenses shall be subject to the usual
budgetary process established by Sec. 40 of P.D. No. 1177 and to the rules on organization,
compensation and honoraria determined for agencies of the government under P.D. No.
985.
A fund staff shall be formed within the Office of the Minister of Labor, whose
compensation and operating expenses shall be charged to fund income, subject to the limits
provided under this Section.
SECTION 6. Repeal Clause. — Letter of Instructions No. 537 and any and all laws,
decrees, executive orders, rules and regulations or parts thereof in consistent with this
Decree are hereby repealed and/or modified accordingly.
SECTION 7. Effectivity. — This Decree shall take effect immediately.
DONE in the City of Manila, this 1st day of May, in the year of Our Lord, Nineteen
Hundred and Eighty.
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B.P. 79 (Commission on Filipinos Overseas) staying in these places.

AN ACT CREATING THE COMMISSION ON FILIPINOS OVERSEAS AND FOR

OTHER PURPOSES SECTION 5. Compensation. — The ex-officio members of the Commission shall be
entitled to per diems for meetings attended, not exceeding two hundred fifty pesos per
SECTION 1. Creation and Composition. — There is hereby created a Commission on meeting and not exceeding on thousand pesos a month. The other members of the
Filipinos Overseas, hereinafter referred to as the Commission, under the Office of the Commission and the officials and employees of the Commission shall be compensated
President. pursuant to the provisions of Presidential Decree Numbered Nine hundred eighty-five and
The Commission shall be composed of five (5) members to be appointed by the President Presidential Decree Numbered Twelve hundred and eighty-five, as the case may be.
(Prime Minister) of the Philippines, one of whom shall be the Minister of Foreign Affairs, SECTION 6. Abolition of Office of Emigrant Affairs. — The Office of Emigrant Affairs in
as ex-officio member: Provided, That the President (Prime Minister) may appoint other the Ministry of Labor and Employment is abolished and its pertinent functions are
ministries as ex-officio members: Provided, further, That in the absence of any ex-officio transferred to the Commission, including applicable funds, records, property and equipment
member, said member may designate his deputy to act in his stead. The President (Prime and the necessary personnel that have been allotted and assigned to the Office of Emigrant
Minister) shall designate the chairman and the vice-chairman of the Commission from Affairs from the Ministry of Labor and Employment and/or other entities.
among its members.
SECTION 7. Appropriations. — The appropriations authorized under Batas Pambansa Blg.
SECTION 2. Definition of "Filipinos Overseas". — For purposes of this Act, the term 40 for the Office of Emigrant Affairs shall be used for the operational expenses of the
"Filipinos Overseas" shall mean Filipinos who are permanent residents abroad, including Commission for the current year, to be augmented as may be necessary from the fund for
Filipino emigrants who are either already citizens of foreign countries or are still Filipino organizational changes provided in Batas Pambansa Blg. 40. Subsequently, its appropriation
citizens awaiting naturalization, recognition, or admission, and their descendants. shall be included in the annual General Appropriations Act.
SECTION 3. Powers and Functions. — The Commission shall have the following powers SECTION 8. Repealing Clause. — All laws, orders, proclamations, rules, regulations, or
and functions: parts thereof which are inconsistent with any of the provisions of this Act are hereby
(a) Provide advice and assistance to the President (Prime Minister) of the Philippines repealed or modified accordingly.
and the Batasang Pambansa in the formulation of policies and measures affecting SECTION 9. Effectivity. — This Act shall take effect upon its approval.
Filipinos overseas;
(b) Formulate, in coordination with agencies concerned, an integrated program for the Approved: June 16, 1980
promotion of the welfare of Filipinos overseas for implementation by suitable Published in the Official Gazette, Vol. 76 No. 30 Page 5206 on July 28, 1980.
existing agencies;
(c) Coordinate and monitor the implementation of such an integrated program;
(d) Initiate and directly undertake the implementation of special projects and
programs, whenever necessary, to promote the welfare of Filipinos overseas with
respect to their interests and activities in the Philippines;
(e) Serve as a forum for preserving and enhancing the social, economic and cultural
ties of Filipinos overseas with their motherland;
(f) Provide liaison services to Filipinos overseas with appropriate government and
private agencies in the transaction of business and similar ventures in the
Philippines;
(g) Promulgate rules and regulations to carry out the objectives of this Act;
(h) Call upon any agency of the Government, including government-owned or
controlled corporations, to render whatever assistance is needed in the pursuance
of the objectives of this Act; and
(i) Perform such other related functions as may be directed by the President (Prime
Minister) or assigned by law.
SECTION 4. Organization. — The Commission shall be assisted by a Secretariat which
shall be organized and staffed in accordance with the provisions of Presidential Decree
Numbered Eleven hundred and seventy-seven. The Commission is authorized, whenever
necessary and subject to the approval of the President (Prime Minister), to establish offices
in suitable places abroad, or to appoint service attaches in the Philippines Embassy or
consulate located thereat, or to designate representatives from among resident Filipinos

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5. OTHER MATTERS INCIDENTAL TO OVERSEAS EMPLOYMENT
A. REPATRIATION:
R.A. 8042, Sections 14 – 18, 36
SECTION 14. Travel Advisory/Information Dissemination. — To give utmost priority
to the establishment of programs and services to prevent illegal recruitment, fraud and
exploitation or abuse of Filipino migrant workers, all embassies and consular offices,
through the Philippine Overseas Employment Administration (POEA), shall issue travel
advisories or disseminate information on labor and employment conditions, migration
realities and other facts; and adherence of particular countries to international standards
on human and workers' rights which will adequately prepare individuals into making
informed and intelligent decisions about overseas employment. Such advisory or
information shall be published in a newspaper of general circulation at least three (3)
times in every quarter.
SECTION 15. Repatriation of Workers; Emergency Repatriation Fund. — The
repatriation of the worker and the transport of his personal belongings shall be the
primary responsibility of the agency which recruited or deployed the worker overseas.
All costs attendant to repatriation shall be borne by or charged to the agency concerned
and/or its principal. Likewise, the repatriation of remains and transport of the personal
belongings of a deceased worker and all costs attendant thereto shall be borne by the
principal and/or the local agency. However, in cases where the termination of
employment is due solely to the fault of the worker, the principal/employer or agency
shall not in any manner be responsible for the repatriation of the former and/or his
belongings
The Overseas Workers Welfare Administration (OWWA), in coordination with
appropriate international agencies, shall undertake the repatriation of workers in cases of
war, epidemic, disaster or calamities, natural or man-made, and other similar events
without prejudice to reimbursement by the responsible principal or agency. However, in
cases where the principal or recruitment agency cannot be identified, all costs attendant
to repatriation shall be borne by the OWWA.
For this purpose, there is hereby created and established an emergency repatriation fund
under the administration, control and supervision of the OWWA, initially to consist of
One hundred million pesos (P100,000,000.00), which shall be taken from the existing
fund controlled and administered by the OWWA. Thereafter, such fund shall be provided
for in the General Appropriations Act from year to year: Provided, That the amount
appropriated shall in no case be less than One hundred million pesos (P100,000,000.00),
inclusive of outstanding balances.
SECTION 16. Mandatory Repatriation of Underage Migrant Workers. — Upon
discovery or being informed of the presence of migrant workers whose actual ages fall
below the minimum age requirement for overseas deployment, the responsible officers in
the foreign service shall without delay repatriate said workers and advise the Department
of Foreign Affairs through the fastest means of communication available of such
discovery and other relevant information.
SECTION 17. Establishment of Re-placement and Monitoring Center. — A re-
placement and monitoring center is hereby created in the Department of Labor and
Employment for returning Filipino migrant workers which shall provide a mechanism for
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their reintegration into the Philippine society, serve as a promotion house for their local
employment, and tap their skills and potentials for national development.
The Department of Labor and Employment, the Overseas Workers Welfare
Administration, and the Philippine Overseas Employment Administration shall, within
ninety (90) days from the effectivity of this Act, formulate a program that would
motivate migrant workers to plan for productive options such as entry into highly
technical jobs or undertakings, livelihood and entrepreneurial development, better wage
employment, and investment of savings.
For this purpose, the Technical Education and Skills Development Authority (TESDA),
the Technology Livelihood Resource Center (TLRC), and other government agencies
involved in training and livelihood development shall give priority to returnees who had
been employed as domestic helpers and entertainers.
SECTION 18. Functions of the Re-placement and Monitoring Center. — The Center
shall provide the following services:
(a) Develop livelihood programs and projects for returning Filipino migrant workers in
coordination with the private sector;
(b) Coordinate with appropriate private and government agencies in the promotion,
development, re-placement and the full utilization of their potentials;
(c) Institute, in cooperation with other government agencies concerned, a computer-
based information system on skilled Filipino migrant workers which shall be
accessible to all local recruitment agencies and employers, both public and private;
(d) Provide a periodic study and assessment of job opportunities for returning Filipino
migrant workers; and
(e) Develop and implement other appropriate programs to promote the welfare of
returning Filipino migrant workers.
SECTION 36. Non-increase of Fees; Abolition of Repatriation Bond. — Upon
approval of this Act, all fees being charged by any government office on migrant workers
shall remain at their present levels and the repatriation bond shall be abolished.
Omnibus Rules Implementing R.A. 8042, Sections 52 - 61
SECTION 52. Primary Responsibility for Repatriation. — The repatriation of the
worker, or his/her remains, and the transport of his/her personal effects shall be the primary
responsibility of the principal or agency which recruited or deployed him/her abroad. All
costs attendant thereto shall be borne by the principal or the agency concerned.
SECTION 53. Repatriation of Workers. — The primary responsibility to repatriate
entails the obligation on the part of principal or agency to advance the cost of plane fare and
to immediately repatriate the worker should the need for it arise, without a prior
determination of the cause of the termination of the worker's employment. However, after
the worker has returned to the country, the principal or agency may recover the cost of
repatriation from the worker if the termination of employment was due solely to his/her
fault.
Every contract for overseas employment shall provide for the primary responsibility of
agency to advance the cost of plane fare, and the obligation of the worker to refund the cost
thereof in case his/her fault is determined by the Labor Arbiter.
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SECTION 54. Repatriation Procedure. — When a need for repatriation arises and the
foreign employer fails to provide for it cost, the responsible personnel at site shall
simultaneously notify OWWA and the POEA of such need. The POEA shall notify the
agency concerned of the need for repatriation. The agency shall provide the plane ticket or
the prepaid ticket advice (PTA) to the Filipinos Resource Center or to the appropriate
Philippine Embassy; and notify POEA of such compliance. The POEA shall inform
OWWA of the action of the agency.
SECTION 55. Action on Non-Compliance. — If the employment agency fails to provide
the ticket or PTA within 48 hours from receipt of the notice, the POEA shall suspend the
license of the agency or impose such sanctions as it may deem necessary. Upon notice from
the POEA, OWWA shall advance the costs of repatriation with recourse to the agency or
principal. The administrative sanction shall not be lifted until the agency reimburses the
OWWA of the cost of repatriation with legal interest.
SECTION 56. Emergency Repatriation. — The OWWA, in coordination with the DFA,
and in appropriate situations, with international agencies, shall undertake the repatriation of
workers in cases of war, epidemic, disasters or calamities, natural or man-made, and other
similar events without prejudice to reimbursement by the responsible principal or agency
within sixty (60) days of notice. In such case, POEA will simultaneously identify and give
notice to the agencies concerned.
SECTION 57. Mandatory Repatriation of Underage Migrant Workers. — The
responsible officer at the foreign service post that shall immediately cause the repatriation
of underage Filipino migrant workers. The cost attendant to this activity shall be borne
correspondingly by the agency and/or principal or the OWWA as the case may be.
SECTION 58. Other Cases of Repatriation. — In all cases where the principal or agency
of the worker cannot be identified, cannot be located or had ceased operations, and the
worker is in need and without means, the OWWA personnel at jobsite, in coordination with
the DFA, shall cause the repatriation. All costs attendant to repatriation borne by the
OWWA are chargeable to the Emergency Repatriation Fund provided in the Act, without
prejudice to the OWWA requiring the agency/employer or the worker to reimburse the cost
of repatriation, in appropriate case.
SECTION 59. Emergency Repatriation Fund. — When repatriation becomes immediate
and necessary, the OWWA shall advance the needed costs from the Emergency
Repatriation Fund without prejudice to reimbursement by the deploying agency and/or
principal, or the worker in appropriate cases. Simultaneously, the POEA shall ask the
concerned agency to work towards reimbursement of costs advanced by the OWWA. In
cases where the cost of repatriation shall exceed One Hundred Million (P100,000,000.00)
Pesos, the OWWA shall make representation with the Office of the President for immediate
funding in excess of said amount.
SECTION 60. Prohibition on Bonds and Deposits. — In no case shall an employment
agency require any bond or cash deposit from the worker to guarantee performance under
contract or his/her repatriation.

SECTION 61. Abolition of Mandatory Repatriation Bond. — Pursuant to Section 36 of

R.A 8042, the mandatory repatriation bond is abolished as of 7 June 1995.

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B.FOREIGN EXCHANGE REMITTANCE
Labor Code: Article 22
ARTICLE 22.
Mandatory Remittance of Foreign Exchange Earnings.— It shall be mandatory for all
Filipino workers abroad to remit a portion of their foreign exchange earnings to their
families, dependents, and/or beneficiaries in the country in accordance with rules and
regulations prescribed by the Secretary of Labor.
E.O. 857 (1982)
Rules Implementing EO 857
Rule 2, Sections 4 (CAVEAT THERE IS NO RULE 2, SECTION 4--I PLACED RULE 3,
SEC 4) ; Rule 5, Sections 1 - 5
EXECUTIVE ORDER NO. 857
GOVERNING THE REMITTANCE TO THE PHILIPPINES OF FOREIGN
EXCHANGE EARNINGS OF FILIPINO WORKERS ABROAD AND FOR OTHER
PURPOSES
WHEREAS, existing laws and regulations governing remittances of foreign exchange
earnings of overseas Filipino workers to their families, dependents and/or beneficiaries
have not been fully effective in ensuring that they are coursed through official financial
institutions of the Philippine Government of their authorized agents;
WHEREAS, it is necessary to protect the welfare of families, dependents and beneficiaries
of Filipino workers abroad and to ensure that the foreign exchange earnings of these
workers are remitted through authorized financial institutions of the Philippine Government
in line with the country's economic development program;
WHEREAS, non-compliance with these aforesaid laws and regulations and recourse to the
use of unauthorized and unofficial financing institutions has led to the detriment of the
country's balance of payments and economic development program;
WHEREAS, it is imperative that the mandatory remittance requirement be fully complied
with by all concerned through the institution of appropriate remittance facilities and the
imposition of effective sanctions;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby order and promulgate:
SECTION 1. It shall be mandatory for every Filipino contract worker abroad to remit
regularly a portion of his foreign exchange earnings to his beneficiary in the Philippines
through the Philippine banking system. Licensed agencies and other entities authorized by
the Ministry of Labor and Employment to recruit Filipino workers for overseas employment
are similarly required to remit their workers' earnings as provided for in this Order.
SECTION 2. All contracts of employment and agency or service agreements submitted to
the Ministry of Labor and Employment shall contain a proviso that shall make it mandatory
Zabala 3D 2021
for workers to remit to the Philippines in foreign exchange at least the following portions of
their earnings:
(a) Seamen or mariners: Seventy (70) percent of basic salary;
(b) Workers of Filipino contractors and construction companies: Seventy (70)
percent of basic salary;
(c) Doctors, engineers, teachers, nurses and other professional workers whose
contract provide for free board and lodging: Seventy (70) percent of basic salary;
(d) All other professional workers whose employment contracts do not provide for
free board and lodging facilities: Fifty (50) percent of basic salary;
(e) Domestic and other service workers: Fifty (50) percent of basic salary;
(f) All other workers not falling under the aforementioned categories: Fifty (50)
percent of basic salary.
SECTION 4. Mandatory remittance requirements
The percentage of foreign exchange remittance referred to in Section 2 of this Rule, shall be as
follows:
(a) Seamen or mariners: Seventy (70) percent of basic salary;
(b) Workers of Filipino contractors and construction companies: Seventy (70) percent of
basic salary;
(c) Doctors, engineers, teachers, nurses and other professional workers whose
employment contracts provide for free board and lodging: Seventy (70) percent of
basic salary
(d) All other professional workers whose employment contracts do not provide for free
board and lodging facilities: Fifty (50) percent of basic salary;
(e) Domestic and other services workers: Fifty (50) percent of basic salary;
(f) All other workers not falling under the aforementioned categories: Fifty (50) percent
of basic salary.
SECTION 3. Passports issued to Filipino contract workers shall have an initial period of
validity of one year provided that the Ministry of Foreign Affairs may adjust, as
circumstances may require, the initial passport validity period. The passport shall be
renewable every year upon submission of usual requirements and presentation of
documentary proof of compliance to the remittance requirement in the percentages
provided for in this Order. The Ministry of Foreign Affairs shall not extend or renew the
passport of any contract worker unless proof of his compliance with the mandatory
remittance requirement is submitted.
SECTION 4. The Ministry of Labor and Employment shall not approve the renewal of
employment contracts and agency or service agreements unless proof of remittance of
foreign exchange earnings is submitted.
SECTION 5. For purposes of this Order, proof of compliance with the mandatory
remittance requirement as mentioned in Section 1 hereof, may consist of any of the
following documents or such alternative as may be approved by the Central Bank of the
Philippines showing that the contract worker had in fact effected aforesaid remittance and
had caused the surrender of the same for pesos through the Philippine banking system:
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a. Confirmed bank (foreign) remittance form; SECTION 1. No accreditation shall be issued to an employer and no license or authority shall
b. Certification from employer, duly authenticated, that remittance has been effected; be granted to an agency or entity by the Ministry of Labor and Employment unless they
c. Certification as to the surrender for pesos to the Philippine banking system; and submit proof that they have provided facilities to effect the remittances of foreign exchange
d. Receipt of International Postal Money Order. earnings of Filipino workers under their employ.
SECTION 2. No contracts of employment and/or service agreement shall be approved or
SECTION 6. Remittances of foreign exchange earnings may be undertaken individually by renewed by the Ministry of Labor and Employment unless proof of compliance with the
the contract worker or collectively through the employer under a payroll deduction scheme, mandatory remittance requirement is submitted.
in accordance with Central Bank regulations and applicable guidelines.
SECTION 3. A contract worker who fails to comply with the mandatory remittance
SECTION 7. As a prerequisite for accreditation by the Ministry of Labor and Employment, requirement shall be suspended or excluded from the list of eligible workers for overseas
an employer shall commit to provide facilities to effect the remittances and monitoring of employment and in cases of subsequent violations, he shall be repatriated at his own expense
foreign exchange earnings of Filipino workers in his employ. or at the expense of his employer as the case may be.
SECTION 8. The Central Bank of the Philippines shall cause necessary arrangements to be SECTION 4. Filipino or foreign employers and/or their representatives who fail to comply
made with the appropriate financing institutions to handle the remittances called for in this with these Rules shall be excluded from the overseas employment program.
Order. In the absence of appropriate banking facilities, the Embassy or Consulate nearest to
the job site, in accordance with local laws and regulations, may act in the interim as the SECTION 5. In case of local private employment agencies and other similar entities, their
channel for remittance of foreign exchange earnings. The Ministry of Foreign Affairs shall failure to comply with the mandatory remittance requirement shall be a ground for
immediately inform the Central Bank of the Philippines these arrangements and shall remit cancellation of their authority to recruit workers for overseas employment without prejudice to
all funds thereto. their liabilities under existing laws and regulations.
SECTION 9. Contract workers who fail to comply with the requirements of this Order
shall be suspended or excluded from the list of eligible workers for overseas employment.
In cases of subsequent violations, he shall be repatriated from the job site at the expense of
the employer or at his expense, as the case may be.
Filipino or foreign employers and/or their representatives who fail to comply with the
requirements under this Order shall be excluded from the overseas employment program. In
the case of local private employment agencies and entities, failure to comply with the
provisions hereof shall be a ground for cancellation of their license or authority to recruit
workers for overseas employment, without prejudice to their liabilities under existing laws
and regulations.

SECTION 10. The Ministries of Labor and Employment and Foreign Affairs and the
Central Bank of the Philippines shall draw up the necessary rules and procedures for the
proper implementation of this Order within ten (10) days from the signing hereof.

SECTION 11. All provisions of existing orders, rules and regulations inconsistent herewith
are hereby repealed.

SECTION 12. This Order shall take effect thirty (30) days after the promulgation of
implementing rules and procedures.

DONE in the City of Manila, this 13th day of December, in the year of Our Lord, Nineteen
Hundred and Eighty-Two.

RULE V
Effect of Non-compliance with the Mandatory Remittance Requirements
on Accreditation of Employer, Issuance of License and Authority
and Approval or Renewal of Contracts of Employment

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C. EXEMPTION FROM TAXES AND FEES; SCHOLARSHIP F. DISCIPLINARY ACTIONS: 1991 POEA RULES, BOOK VII, RULE 7
R.A. 8042, Sections 35-37
BOOK VII: EMPLOYER-EMPLOYEE RELATION CASES
RULE VII: DISCIPLINARY ACTION FOR OVERSEAS CONTRACT WORKERS
SECTION 35. Exemption from Travel Tax and Airport Fee. — All laws to the   
contrary notwithstanding, the migrant worker shall be exempt from the payment of travel Section 1.  Disciplinary Action. - Complaints for breach of discipline against a contract
tax and airport fee upon proper showing of proof of entitlement by the POEA. worker shall be filed with the Adjudication Office or Regional Office, as the case may be.
The Administration may, motu proprio, undertake a disciplinary action against a worker for
SECTION 36. Non-increase of Fees; Abolition of Repatriation Bond. — Upon
breach of contract.
approval of this Act, all fees being charged by any government office on migrant workers
shall remain at their present levels and the repatriation bond shall be abolished.
The Administration shall establish a system of watchlisting and blacklisting of overseas
SECTION 37. The Congressional Migrant Workers Scholarship Fund. — There is contract workers.
hereby created a Congressional Migrant Workers Scholarship Fund which shall benefit
deserving migrant workers and/or their immediate descendants below twenty-one (21) Section 2.  Grounds for Disciplinary Action. - Commission by the worker of any of the
years of age who intend to pursue courses or training primarily in the field of science and offenses enumerated below or of similar offenses while working overseas shall be subject to
technology. The initial seed fund of Two hundred million pesos (P200,000,000.00) shall appropriate disciplinary actions as the Administration may deem necessary:
be constituted from the following sources:
1. Commission of a felony or crime punishable by Philippine Laws or by the laws of
(a) Fifty million pesos (P50,000,000.00) from the unexpended Countrywide the host country;
Development Fund for 1995 in equal sharing by all Members of Congress; and 2. Drug addiction or possession or trafficking of prohibited drugs;
3. Desertion or abandonment;
(b) The remaining One hundred fifty million pesos (P150,000,000.00) shall be funded
4. Drunkenness, especially where the laws of the host country prohibit intoxicating
from the proceeds of Lotto draws.
drinks;
The Congressional Migrant Workers Scholarship Fund as herein created shall be 5. Gambling especially where the laws of the host country prohibit the same;
administered by the DOLE in coordination with the Department of Science and 6. Initiating or joining a strike or work stoppage where the laws of the host country
Technology (DOST). To carry out the objectives of this section, the DOLE and the prohibit strikes or similar actions;
DOST shall formulate the necessary rules and regulations. 7. Creating trouble at the worksite or in the vessel;
8. Embezzlement of company funds or moneys and properties or a fellow worker
entrusted for delivery to kin or relatives in the Philippines;
9. Theft or robbery;
D. MIGRANT WORKERS’ DAY: R.A. 8042, SECTION 39 10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly weapons;
SECTION 39. Migrant Workers Day. — The day of signing by the President of this Act 13. Violation/s of the sacred practices of the host country; and
shall be designated as the Migrant Workers Day and shall henceforth be commemorated as 14. Unjustified breach of government approved employment contract.
such annually
Section 3. Handling of Cases. - The procedure/s provided in this Book shall also apply in
disciplinary cases involving contract workers, including seamen.
E. INCENTIVES TO PROFESSIONALS: R.A. 8042, SECTION 31
Section 4. Who May be Included in the Watchlist.  - A contract worker, or a seaman, who
has a pending complaint for disciplinary action and those against whom a warrant of arrest
or hold departure order issued by the appropriate agency, shall be included in the watchlist.
VIII. Professional and Other Highly-Skilled Filipinos Abroad
SECTION 31. Incentives to Professionals and Other Highly-Skilled Filipinos
Section 5.  Penalties for Breach of Discipline. - Breach of discipline may be penalized by:
Abroad. — Pursuant to the objective of encouraging professionals and other highly-
a. Stern warning;
skilled Filipinos abroad especially in the field of science and technology to participate in,
b. repatriation to the Philippines at the worker’s expense;
and contribute to national development, the government shall provide proper and
c. suspension; and 
adequate incentives and programs so as to secure their services in priority development
d. disqualification from the overseas employment program.
areas of the public and private sectors.
In case of seamen, delisting from the registry.

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The penalty/ies imposed by the Administration shall be without prejudice to whatever civil
or criminal liability that may be imposed by appropriate courts for said breach of discipline.
Section 6.  Disqualification of Contract Worker.  - Contract Workers, including seamen,
against whom penalties have been imposed or with pending obligations imposed upon them
through an order, decision or resolution shall be included in the POEA Blacklist.   Workers
in the Blacklist shall be disqualified from overseas employment unless properly cleared by
the Administration or until their suspension is served or lifted.
Section 7.  Delisting of the Contract Worker’s Name from the POEA Watchlist. - The
name of an overseas worker may be excluded, deleted and removed from the POEA
Watchlist only after disposition of the case by the Administration.
6. DISPUTE SETTLEMENT
Labor Code: Articles 36 -37
RA 8042, Sections 9 - 13
Omnibus Rules Implementing R.A. 8042, Sections 28 – 29
Labor Code Arts 36-37
ART. 36. Regulatory Power. The Secretary of Labor shall have the power to restrict and
regulate the recruitment and placement activities of all agencies within the coverage of this
Title and is hereby authorized to issue orders and promulgate rules and regulations to carry
out the objectives and implement the provisions of this Title.
(See also Section 23 of R.A. No. 8042, as amended by Section 14 of R.A. 10022, and
Section 3 of R.A. No. 10022.)
ART. 37. Visitorial Power. The Secretary of Labor or his duly authorized representatives
may, at any time, inspect the premises, books of accounts and records of any person or
entity covered by this Title, require it to submit reports regularly on prescribed forms, and
act on violation of any provisions of this Title.
(See also Rule III (Inspection of Agencies) of the POEA Rules. For local employment, see
Rule IX of the PRPA Guidelines.)
RA 8042, Sections 9-13
SEC. 9. VENUE. – A 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: Provided, That the court where the criminal action is first
filed shall acquire jurisdiction to the exclusion of other courts. Provided, however, That
the aforestated provisions shall also apply to those criminal actions that have already
been filed in court at the time of the effectivity of this Act.
Section 28. Jurisdiction of the POEA. –
The POEA shall exercise original and exclusive jurisdiction to hear and decide:
(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 entities; and
(b) disciplinary action cases and other special cases, which are administrative in character,
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involving employers, principals, contracting partners and Filipino migrant workers.
Section 29. Venue. –
The cases mentioned in Section 28(a) of this Rule, may be filed with the POEA
Adjudication Office or the DOLE/POEA regional office of the place where the complaint
applied or was recruited, at the option of the complainant. The office with which the
complaint was first filed shall take cognizance of the case.
Disciplinary action cases and other special cases, as mentioned in the preceding Section,
shall be filed with the POEA Adjudication Office.
SEC. 10. MONEY CLAIMS. – Notwithstanding any provision of law to the contrary,
the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the
priginal and exclusive jurisdiction to hear and decide, within ninety (90) 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.
The liability of the principal/employer and the recruitment/placement agency for any and
all claims under this section shall be joint and several. This provisions shall be
incorporated in the contract for overseas employment and shall be a condition precedent
for its approval. The performance bond to be filed by the recruitment/placement agency,
as provided by law, shall be answerable for all money claims or damages that may be
awarded to the workers. If the recruitment/placement 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.
Such 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.
Any compromise/amicable settlement or voluntary agreement on money claims inclusive
of damages under this section shall be paid within four (4) months from the approval of
the settlement by the appropriate authority.
In case of termination of overseas employment without just, valid or authorized cause as
defined by law or contract, the workers shall be entitled to the full reimbursement of his
placement fee with interest of twelve percent (12%) per annum, plus his salaries for the
unexpired portion of his employment contract or for three (3) months for every year of
the unexpired term, whichever is less.
Non-compliance with the mandatory periods for resolutions of cases provided under this
section shall subject the responsible officials to any or all of the following penalties:
(a) The salary of any such official who fails to render his decision or resolutions within
the prescribed period shall be, or caused to be, withheld until the said official complies
therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualifications to hold any appointive public office
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for five (5) years.

Provided, however, that the penalties herein provided shall be without prejudice to any
liability which any such official may have incurred under other existing laws or rules and
regulations as a consequence of violating the provisions of this paragraph.

SEC. 11. MANADATORY PERIODS FOR RESOLUTION OF ILLEGAL

RECRUITMENT CASES. – The preliminary investigations of cases under this Act
shall be terminated within a period of thirty (30) calendar days from the date of their
filing. Where the preliminary investigation is conducted by a prosecution officer and a
prima facie case is established, the corresponding information shall be filed in court
within twenty-four (24) hours from the termination of the investigation. If the
preliminary investigation is conducted by a judge and a prima facie case is found to
exist, prosecution officer within forty-eight (48) hours from the date of receipt of the
records of the case.

SEC. 12. PRESCRIPTIVE PERIODS. – Illegal recruitment cases under this Act shall
prescribe in five (5) years: Provided, however, That illegal recruitment cases involving
economic sabotage as defined herein shall prescribe in twenty (20) years.

SEC. 13. FREE LEGAL ASSISTANCE, PREFERENTIAL ENTITLEMENT

UNDER THE WITNESS PROTECTION PROGRAM. – A mechanism for free legal
assistance for victims of illegal recruitment shall be established within the Department of
Labor and Employment including its regional offices. Such mechanism must include
coordination and cooperation with the Department of Justice, the Integrated Bar of the
Philippines, and other non-governmental organizations and volunteer groups.
The provisions of Republic Act No. 6981 to the contrary, notwithstanding, any person
who is a victim of illegal recruitment shall be entitled to the Witness Protection Program
provided thereunder.

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7. DISABILITY CLAIMS OF SEAFARERS
POEA Memorandum Circular No. 10, series of 2010
POEA MEMORANDUM CIRCULAR NO. 010-10
TO : All Principals/Employers, Licensed Manning Agencies and
Filipino Seafarers
SUBJECT : Amended Standard Terms and Conditions Governing the Overseas
Employment of Filipino Seafarers On-Board Ocean-Going Ships
Pursuant to Governing Board Resolution No. 09, series of 2010, the following guidelines on
the implementation of the Amended Standard Terms and Conditions Governing the
Overseas Employment of Filipino Seafarers on Board Ocean-Going Ships, which reflect the
consensus of all the stakeholders after a series of tripartite consultations, are hereby issued:
1. The terms and conditions provided therein are the minimum requirements acceptable to
the POEA for the employment of Filipino seafarers on board ocean-going ships.
2. The parties to the contract may improve on the minimum terms and conditions, provided
such improvements shall be made in writing and appended to the contract of employment.
3. Manning agencies shall use and submit to the POEA, the full text of the seafarer's
employment contract herein attached including improvements, if any, for approval and
processing. Such improvements in the contract shall have prospective application.
4. Manning agencies are directed to inform and provide copies of the amended terms and
conditions to all its accredited principals/employers.
5. Manning agencies shall ensure that its departing seafarers are given a copy of the
processed and approved employment contract, including its improvements if any. Under no
circumstances shall seafarers be allowed to leave for their respective vessels without a copy
of the processed employment contract. Such contract shall be randomly checked at the
airports.
6. PDOS providers for seafarers are directed to include in the Pre-departure Orientation
Seminar (PDOS) of its hired seafarers, the provisions of the amended terms and conditions
governing the employment of Filipino seafarers on board ocean-going ships.
This Circular shall take effect fifteen (15) days after publication in a newspaper of
general circulation. EcATDH
(SGD.) NORIEL P.
DEVANADERA
OIC-Administrator
Zabala 3D 2021
Standard Terms and Conditions Governing the Overseas Employment of Filipino
Seafarers On-board Ocean-going Ships (POEA Standard Employment Contract) (Also
within MC No. 10)
STANDARD TERMS AND CONDITIONS GOVERNING THE OVERSEAS
EMPLOYMENT OF FILIPINO SEAFARERS ON-BOARD OCEAN-GOING
SHIPS
Definition of Terms:
For purposes of this contract, the following terms are defined as follows:
1. Allottee — refers to any person named or designated by the seafarer as the
recipient of his remittance to the Philippines.
2. Basic Wage — refers to the salary of the seafarer exclusive of overtime, leave
pay and other allowances and benefits.
3. Beneficiary(ies) — refers to the person(s) to whom the death compensation and
other benefits due under the employment contract are payable in accordance
with rules of succession under the Civil Code of the Philippines, as amended.
4. Compassionate Ground — refers to incidence of death of an immediate
member of the seafarer's family which includes his parents, spouse and
children if the seafarer is married or his parents if the seafarer is single.
5. Convenient Port — any port where it is practicable, economical, safe and
convenient to repatriate the seafarer.
6. Dental Treatment — covers tooth extraction, or dental surgery if necessary,
due to accident.
7. Departure — refers to the actual departure from the point of hire of the seafarer
through air, sea or land travel transport to join his ship at a Philippine or
foreign port.
8. Manning Agency — refers to any person, partnership or corporation duly
licensed by the Secretary of Labor and Employment to engage in the
recruitment and placement of seafarers for ships plying international waters
and for related maritime activities.
9. Philippine Port — refers to any Philippine airport or seaport.
10. Point of Hire — refers to the place indicated in the contract of employment
which shall be the basis for determining commencement and termination of
contract. CaASIc
11. Pre-existing illness — an illness shall be considered as pre-existing if prior to
the processing of the POEA contract, any of the following conditions are
present:
a. The advice of a medical doctor on treatment was given for such
continuing illness or condition; or
b. The seafarer had been diagnosed and has knowledge of such an
illness or condition but failed to disclose the same during pre-
employment medical examination (PEME),and such cannot be
diagnosed during the PEME.
12. Principal/Employer/Company — any person, partnership or corporation hiring
Filipino seafarers to work onboard ocean-going ships.
13. Regular Working Hours — refers to the seafarer's eight (8) hour working hours
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within a period of 24 hours.
14. Seafarer — refers to any person who is employed or engaged in overseas
employment in any capacity on board a ship other than a government ship used
for military or non-commercial purposes.
15. Shipwreck — refers to the damage or destruction of a ship at sea caused by
collision, storm, grounding or any other marine peril at sea or in port rendering
the ship absolutely unable to pursue her voyage.
16. Work-Related Illness — any sickness as a result of an occupational disease
listed under Section 32-A of this Contract with the conditions set therein
satisfied.
17. Work-Related Injury — injury arising out of and in the course of employment.
SECTION 1. Duties. —
A. Duties of the Principal/Employer/Master/Company:
1. To faithfully comply with the stipulated terms and conditions of this contract,
particularly the prompt payment of wages, remittance of allotment and the
expeditious settlement of valid claims of the seafarer.
2. To extend coverage to the seafarers under the Philippine Social Security
System (SSS),Philippine Health Insurance Corporation
(PhilHealth),Employees' Compensation Commission (ECC) and Home
Development Mutual Fund (Pag-IBIG Fund),unless otherwise provided in
multilateral or bilateral agreements entered into by the Philippine government
with other countries. acITSD
3. To make operational on board the ship the grievance machinery provided in
this contract and ensure its free access at all times by the seafarer.
4. To provide a seaworthy ship for the seafarer and take all reasonable
precautions to prevent accident and injury to the crew including provision of
safety equipment, fire prevention, safe and proper navigation of the ship and
such other precautions necessary to avoid accident, injury or sickness to the
seafarer.
5. To observe the Code of Ethics for Seafarers and conduct himself in the
traditional decorum of a master.
6. To provide a workplace conducive for the promotion and protection of the
health of the seafarers in accordance with the standards and guidelines in Title
4 of the ILO Maritime Labor Convention, 2006.
B. Duties of the Seafarer:
1. To faithfully comply with and observe the terms and conditions of this
contract, violation of which shall be subject to disciplinary action pursuant to
Section 33 of this contract.
2. To abide by the Code of Discipline as provided in the POEA rules and
regulations governing overseas contract workers and the Code of Ethics for
Seafarers.
3. To be obedient to the lawful commands of the Master or any person who shall
lawfully succeed him and to comply with the company policy including safety
policy and procedures and any instructions given in connection therewith.
4. To be diligent in his duties relating to the ship, its stores and cargo, whether on
board, in boats or ashore.
5. To conduct himself at all times in an orderly and respectful manner towards
shipmates, passengers, shippers, stevedores, port authorities and other persons
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on official business with the ship.
6. To take personal responsibility for his health while onboard by practicing a
healthy lifestyle which includes taking medications and lifestyle changes as
prescribed by the company-designated doctor. ACDIcS
SECTION 2. Commencement/Duration of Contract. —
A. The employment contract between the employer and the seafarer shall commence
upon actual departure of the seafarer from the Philippine airport or seaport in the
point of hire and with a POEA approved contract. It shall be effective until the
seafarer's date of arrival at the point of hire upon termination of his employment
pursuant to Section 18 of this Contract.
B. The period of employment shall be for a period mutually agreed upon by the
seafarer and the employer but not to exceed 12 months. Any extension of the
contract shall be subject to mutual consent of both parties.
SECTION 3. Free Passage from the Point of Hire to the Port of Embarkation. —
The seafarer shall join the ship and be available for duty at the date and time specified by
the employer. The seafarer shall travel by air or as otherwise directed at the expense of
the employer.
SECTION 4. Baggage Allowance. —
The seafarer traveling by air to join a ship or on repatriation shall be entitled to the
normal free baggage allowance offered by the airlines. The cost of the excess baggage
shall be for the account of the seafarer.
SECTION 5. Hygiene and Vaccination. —
(a) The seafarer shall keep his quarters and other living spaces such as: mess rooms,
toilets, bathrooms, alleyways and recreation rooms in clean and tidy condition to the
satisfaction of the master. Such work is to be performed outside the seafarer's
regular working hours and for which noovertime pay shall be claimed.
(b) The seafarer shall submit to the order of the master or to the laws of any country
within the territorial jurisdiction of which the ship may enter to have such
vaccination or inoculation or to undertake measures to safeguard his health and the
entire crew complement.
(c) The company/employer shall ensure that the seafarer shall be informed on the cause,
prevention and consequences of HIV/AIDS.
SECTION 6. Wages. —
(a) All seafarers shall be paid for their work regularly and in full in accordance with
this contract. They shall be paid monthly wages not later than 15 days of the
succeeding month from the date of commencement of the contract until the date of
arrival at point of hire upon termination of their employment pursuant to Section 18
of this contract.
(b) Seafarers shall be given a monthly account of the payments due and the amounts
paid to them, including wages, additional payments and the rate of exchange used.
SECTION 7. Payment on Board. —
Payment of shipboard pay in foreign ports shall be subject to the currency control
regulations at the port abroad and to the official rate of exchange prevailing at the time of
payment. Advances shall be at the master's/employer's discretion and in accordance with
the foregoing conditions.
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 Zabala 3D 2021

eight (8) hours as prescribed above. Overtime pay may be classified as open, fixed or
guaranteed.
SECTION 8. Allotments and Remittances.—
(a) The seafarer is required to make an allotment which shall be payable once a month In computing overtime, a fraction of the first hour worked shall be considered as one full
to his designated allottee in the Philippines through any authorized Philippine bank. hour. After the first hour overtime, any work performed which is less than thirty (30)
The principal/employer/master/company shall provide the seafarer with facilities to minutes shall be considered as half an hour and more than thirty (30) minutes shall be
do so at no expense to the seafarer. The allotment shall be at least eighty percent considered one full hour.
(80%) of the seafarer's monthly basic salary.
(b) The principal/employer/master/company may also provide facilities for the seafarer B. Overtime work may be compensated at the following rates:
to remit any amount earned in excess of his allotment, including backwages, if any, 1) Open overtime — not less than 125 percent (125%) of the basic hourly rate
to his designated allottee in the Philippines through any authorized Philippine bank computed based on two hundred eight (208) regular working hours per month.
without any charge to him. 2) Guaranteed or fixed overtime — not less than thirty percent (30%) of the basic
(c) The allotments shall be paid to the designated allottee in Philippine currency at the monthly salary of the seafarer. This fixed rate overtime shall include overtime
rate of exchange indicated in the credit advice of the local authorized Philippine work performed on Sundays and holidays but shall not exceed one hundred
bank. five (105) hours a month. ECaHSI
3) Overtime work for officers shall be computed based on the fixed overtime rate.
SECTION 9. Final Wage Account & Certificate of Employment.— 4) For ratings, overtime work shall be based on guaranteed or open overtime rate,
The seafarer, upon his discharge, shall be given a written account of his final wages as mutually agreed upon by the contracting parties. For ratings paid on
reflecting all deductions therefrom. Where a seafarer is landed in an emergency, the guaranteed overtime, overtime work in excess of 105 hours a month for ratings
written account of his wages shall be given to him not later than one month from shall be further compensated by their hourly overtime rate.
disembarkation. Upon the seafarer's request, he shall also be provided by his
principal/employer/master/company his certificate of employment or service record C. Any hours of work or duty including hours of watchkeeping performed by the seafarer
without any charge. on designated rest days and holidays shall be paid rest day or holiday pay. The following
shall be considered as holidays at sea and in port:
SECTION 10. Hours of Work. —
(a) The seafarer shall perform not more than forty-eight (48) hours of regular work a New Year's Day January 1
week. The hours of works shall be determined and prescribed by the master,
provided that it conforms with the customary international practices and standards Maundy Thursday movable date
and as prescribed in paragraph B below.
(b) Regular working hours for the seafarer shall be eight (8) hours in every 24 hours, Good Friday movable date
midnight to midnight, Monday to Sunday. The normal practice is as follows:
1) The day worker shall observe the eight (8) regular working hours during the Araw ng Kagitingan
period from 0600 hours to 1800 hours. (Bataan & Corregidor April 9
2) The steward personnel shall observe the eight (8) regular working hours during Day)
the period from 0500 hours to 2000 hours.
3) The Radio Operator shall observe the eight (8) regular working hours in every Labor Day May 1
twenty-four (24) hours, midnight to midnight, from Monday to Sunday as
established by International Telecommunication Conventions and as prescribed Independence Day June 12
by the master.
4) For those who are on sea watch, their working hours shall be eight (8) hours Last Sunday of
National Heroes Day
per day. Staggering of working hours will be at the master's discretion. August
(c) The record of the seafarer's daily hours of work or of his daily hours of rest shall be
maintained to allow monitoring of compliance to the above provisions. The seafarer All Saints Day November 1
shall be provided a copy of the records pertaining to him which shall be endorsed by
the master or a person authorized by the master, and by the seafarer. Bonifacio Day November 30

The seafarer shall be allowed reasonable rest period in accordance with international Christmas Day December 25
standards.

SECTION 11. Overtime & Holidays. — Rizal Day December 30

A. The seafarer shall be compensated for all work performed in excess of the regular

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D. Emergency Duty
Nothing in this Contract shall be deemed to impair the right of the master of a ship to
require a seafarer to perform any hours of work necessary for the immediate safety of the
ship, persons on board or cargo, for the purpose of giving assistance to other ships or
persons in distress at sea, or to conduct fire, boat, or emergency drill. Accordingly, the
master may suspend the schedule of hours of work or hours of rest and require a seafarer
to perform any hours of work necessary until the normal situation has been restored or
the drill has been completed. As soon as practicable after the normal situation has been
restored or the drill has been completed, the master shall ensure that any seafarer who
have performed work in a scheduled rest period are provided with an adequate period of
rest.
No overtime work and pay shall be considered for such an emergency service or for fire,
boat, or emergency drill.
SECTION 12. Leave Pay. —
The seafarer's leave pay shall be in accordance with the number of days leave per month
as agreed upon. Days leave shall not be less than four and a half days (4 1/2) for each
month of service and pro-rated. Leave pay shall be settled onboard or settled within two
weeks after arrival of the seafarer at the point of hire.
SECTION 13. Shore Leave. —
The seafarer shall be allowed shore leave when practicable, upon the consent of the
master or his deputy, taking into consideration the operations and safety of the ship.
SECTION 14. Subsistence, Ship Stores and Provisions. —
(a) The seafarer shall be provided by the principal/employer/master/company with
subsistence consistent with good maritime standards and practices while on board
the ship.
(b) All stores and provisions issued to the seafarer are only for use and consumption on
board the ship and any unused or unconsumed stores or provisions shall remain the
property of the employer. The seafarer shall not take ashore, sell, destroy or give
away such stores and provisions.
SECTION 15. Transfer Clause. —
The seafarer agrees to be transferred at any port to any ship owned or operated, manned
or managed by the same employer, provided it is accredited to the same manning agent
and provided further that the position of the seafarer and the rate of his wages and terms
of service are in no way inferior and the total period of employment shall not exceed that
originally agreed upon.
Any form of transfer shall be documented and made available when necessary.
SECTION 16. Grievance Machinery. —
A. If the seafarer considers himself aggrieved, he shall make his complaint in
accordance with the following procedures:
1. The seafarer shall first approach the head of the Department in which he is
assigned to explain his grievance.
(a) In the Deck, Radio and Catering Department, the head is the Chief Mate.
Zabala 3D 2021
(b) In the Engine Department, the head is the Chief Engineer.
(c) In the Catering and/or Hotel Department in a passenger ship, the head is
the Chief Steward and/or Purser.
2. The seafarer shall make his grievance in writing and in an orderly manner and
shall choose a time when his complaint or grievance can be properly heard.
3. The seafarer may also seek the assistance of the highest-ranking Filipino
seafarer on board.
4. The Department head shall deal with the complaint or grievance and where
solution is not possible at his level, refer the complaint or grievance to the
Master who shall handle the case personally.
5. If no satisfactory result is achieved, the seafarer concerned may appeal to the
management of the company or with a Philippine Overseas Labor Office or
consular officer overseas. The master shall afford such facilities necessary to
enable the seafarer to transmit his appeal.
B. When availed of by the seafarer, the grievance procedure and all actions or
decisions agreed upon shall be properly documented for the protection and interest
of both parties.
C. The aggrieved seafarer whose employment is covered by an existing CBA shall
elevate any unsatisfactory resolution of his grievance to voluntary arbitration as
agreed upon under the CBA. The aggrieved party whose employment is not covered
by an existing CBA may elevate his complaint to the Maritime Industry Labor
Arbitration Council (MILA) prior to any other forum.
D. The foregoing procedures shall be without prejudice to other modes of voluntary
settlement of disputes and to the jurisdiction of the Philippine Overseas
Employment Administration (POEA) or the National Labor Relations Commission
(NLRC) over any unresolved complaints arising out of shipboard employment that
shall be brought before it by the seafarer.
SECTION 17. Disciplinary Procedures. —
The Master shall comply with the following disciplinary procedures against an erring
seafarer:
A. The Master shall furnish the seafarer with a written notice containing the following:
1. Grounds for the charges as listed in Section 33 of this Contract or analogous
act constituting the same.
2. Date, time and place for a formal investigation of the charges against the
seafarer concerned.
B. The Master or his authorized representative shall conduct the investigation or
hearing, giving the seafarer the opportunity to explain or defend himself against the
charges. These procedures must be duly documented and entered into the ship's
logbook.
C. If after the investigation or hearing, the Master is convinced that imposition or a
penalty is justified, the Master shall issue a written notice of penalty and the reasons
for it to the seafarer, with copies furnished to the Philippine agent.
D. Dismissal for just cause may be effected by the Master without furnishing the
seafarer with a notice of dismissal if there is a clear and existing danger to the safety
of the crew or the ship. The Master shall send a complete report to the manning
agency substantiated by witnesses, testimonies and any other documents in support
thereof.
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SECTION 18. Termination of Employment. —
A. The employment of the seafarer shall cease when the seafarer completes his period
of contractual service aboard the ship, signs-off from the ship and arrives at the
point of hire.
B. The employment of the seafarer is also terminated effective upon arrival at the point
of hire for any of the following reasons:
1) When the seafarer signs-off and is disembarked for medical reasons pursuant to
Section 20 (A) [5] of this Contract.
2) When the seafarer signs-off due to shipwreck, ship's sale, lay-up of ship,
discontinuance of voyage or change of ship principal in accordance with
Sections 22, 23 and 26 of this Contract.
3) When the seafarer, in writing, voluntarily resigns and signs off prior to
expiration of contract pursuant to Section 19 (G) of this Contract.
4) When the seafarer is discharged for just cause as provided for in Section 33 of
this Contract.
SECTION 19. Repatriation. —
(a) If the ship is outside the Philippines upon the expiration of the contract, the seafarer
shall continue his service on board until the ship's arrival at a convenient port and/or
after arrival of the replacement crew provided that, in any case, the continuance of
such service shall not exceed three months. The seafarer shall be entitled to earned
wages and benefits as provided in his contract. TcCSIa
(b) If the ship arrives at a convenient port before the expiration of the contract, the
principal/employer/master/company may repatriate the seafarer from such port,
provided the unserved portion of his contract is not more than one (1) month. The
seafarer shall be entitled only to his earned wages and earned leave pay and to his
basic wages corresponding to the unserved portion of the contract, unless within 60
days from disembarkation, the seafarer is rehired at the same rate and position, in
which case the seafarer shall be entitled only to his earned wages and earned leave
pay.
(c) If the ship arrives at a convenient port within a period of three (3) months before the
expiration of his contract, the principal/employer/master/company may repatriate
the seafarer from such port provided that the seafarer shall be paid all his earned
wages. In addition, the seafarer shall also be paid his leave pay for the entire
contract period plus a termination pay equivalent to one (1) month of his basic pay,
provided, however, that this mode of termination may only be exercised by the
principal/employer/master/company if the original contract period of the seafarer is
at least nine (9) months; provided, further, that the conditions for this mode of
repatriation shall not apply to dismissal for cause.
(d) The seafarer, if discharged at a port abroad for any reason shall be repatriated to the
Philippines via sea or air or as may otherwise be directed by the
principal/employer/company. He shall be provided with accommodation and food,
allowances and medical treatment, if necessary, until he arrives at the point of hire.
(e) When the seafarer is discharged for any just cause, the employer shall have the right
to recover the costs of his replacement and repatriation from the seafarer's wages
and other earnings.
(f) The seafarer, when discharged and repatriated as directed by the
principal/employer/master/company shall be entitled to basic wages from date of
signing off until arrival at the point of hire except when the discharge is in
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accordance with the above or for disciplinary reasons.
(g) If the seafarer delays or makes a detour or proceeds to a destination other than
through the travel itinerary arranged by the employer to the point of hire, the
employment of the seafarer will be considered terminated at the time the seafarer
signs off the ship and all additional expenses shall be to the seafarer's account. The
seafarer shall be entitled to earned wages and basic wage calculated based on the
original scheduled date of arrival at the point of hire. All other liabilities of the
company in this event shall cease at the time the seafarer is terminated. Any illness,
injury or death sustained by the seafarer, due to the above shall be considered non-
work related and shall not be compensated.
(h) A seafarer who requests for early termination of his contract shall be liable for his
repatriation cost as well as the transportation cost of his replacement. The employer
may, in case of compassionate grounds, assume the transportation cost of the
seafarer's replacement.
(i) The seafarer shall report to the manning agency within 72 hours upon arrival at
point of hire.
SECTION 20. Compensation and Benefits. —
A. Compensation and Benefits for Injury or Illness
The liabilities of the employer when the seafarer suffers work-related injury or illness
during the term of his contract are as follows:
1) The employer shall continue to pay the seafarer his wages during the time he is
on board the ship;
2) If the injury or illness requires medical and/or dental treatment in a foreign
port, the employer shall be liable for the full cost of such medical, serious
dental, surgical and hospital treatment as well as board and lodging until the
seafarer is declared fit to work or to be repatriated. However, if after
repatriation, the seafarer still requires medical attention arising from said injury
or illness, he shall be so provided at cost to the employer until such time he is
declared fit or the degree of his disability has been established by the company-
designated physician.
3) In addition to the above obligation of the employer to provide medical
attention, the seafarer shall also receive sickness allowance from his employer
in an amount equivalent to his basic wage computed from the time he signed
off until he is declared fit to work or the degree of disability has been assessed
by the company-designated physician. The period within which the seafarer
shall be entitled to his sickness allowance shall not exceed 120 days. Payment
of the sickness allowance shall be made on a regular basis, but not less than
once a month.
The seafarer shall be entitled to reimbursement of the cost of medicines
prescribed by the company-designated physician. In case treatment of the
seafarer is on an out-patient basis as determined by the company-designated
physician, the company shall approve the appropriate mode of transportation
and accommodation. The reasonable cost of actual traveling expenses and/or
accommodation shall be paid subject to liquidation and submission of official
receipts and/or proof of expenses.
For this purpose, the seafarer shall submit himself to a post-employment
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medical examination by a company-designated physician within three working
days upon his return except when he is physically incapacitated to do so, in
which case, a written notice to the agency within the same period is deemed as
compliance. In the course of the treatment, the seafarer shall also report
regularly to the company-designated physician specifically on the dates as
prescribed by the company-designated physician and agreed to by the seafarer.
Failure of the seafarer to comply with the mandatory reporting requirement
shall result in his forfeiture of the right to claim the above benefits.
If a doctor appointed by the seafarer disagrees with the assessment, a third
doctor may be agreed jointly between the Employer and the seafarer. The third
doctor's decision shall be final and binding on both parties.
4) Those illnesses not listed in Section 32 of this Contract are disputably
presumed as work-related.
5) In case a seafarer is disembarked from the ship for medical reasons, the
employer shall bear the full cost of repatriation in the event the seafarer is
declared (1) fit for repatriation, or (2) fit to work but the employer is unable to
find employment for the seafarer on board his former ship or another ship of
the employer.
6) In case of permanent total or partial disability of the seafarer caused by either
injury or illness the seafarer shall be compensated in accordance with the
schedule of benefits enumerated in Section 32 of his Contract. Computation of
his benefits arising from an illness or disease shall be governed by the rates and
the rules of compensation applicable at the time the illness or disease was
contracted.
7) The disability shall be based solely on the disability gradings provided under
Section 32 of this Contract, and shall not be measured or determined by the
number of days a seafarer is under treatment or the number of days in which
sickness allowance is paid.
8) It is understood and agreed that the benefits mentioned above shall be separate
and distinct from, and will be in addition to whatever benefits which the
seafarer is entitled to under Philippine laws such as from the Social Security
System, Overseas Workers Welfare Administration, Employees' Compensation
Commission, Philippine Health Insurance Corporation and Home Development
Mutual Fund (Pag-IBIG Fund).
B. Compensation and Benefits for Death
1. In case of work-related death of the seafarer, during the term of his contract,
the employer shall pay his beneficiaries the Philippine currency equivalent to
the amount of Fifty Thousand US dollars (US$50,000) and an additional
amount of Seven Thousand US dollars (US$7,000) to each child under the age
of twenty-one (21) but not exceeding four (4) children, at the exchange rate
prevailing during the time of payment.
2. Where death is caused by warlike activity while sailing within a declared war
zone or war risk area, the compensation payable shall be doubled. The
employer shall undertake appropriate war zone insurance coverage for this
purpose.
3. It is understood and agreed that the benefits mentioned above shall be separate
and distinct from, and will be in addition to whatever benefits which the
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seafarer is entitled to under Philippine laws from the Social Security System,
Overseas Workers Welfare Administration, Employee's Compensation
Commission, Philippine Health Insurance Corporation and Home Development
Mutual Fund (Pag-IBIG Fund).
4. The other liabilities of the employer when the seafarer dies as a result of work-
related injury or illness during the term of employment are as follows:
a) The employer shall pay the deceased's beneficiary all outstanding
obligations due the seafarer under this Contract.
b) The employer shall transport the remains and personal effects of the
seafarer to the Philippines at employer's expense except if the death
occurred in a port where local government laws or regulations do not
permit the transport of such remains. In case death occurs at sea, the
disposition of the remains shall be handled or dealt with in accordance
with the master's best judgment. In all cases, the employer/master shall
communicate with the manning agency to advise for disposition of
seafarer's remains.
c) The employer shall pay the beneficiaries of the seafarer the Philippine
currency equivalent to the amount of One Thousand US dollars
(US$1,000) for burial expenses at the exchange rate prevailing during the
time of payment.
C. It is understood that computation of the total permanent or partial disability of the
seafarer caused by the injury sustained resulting from warlike activities within the
warzone area shall be based on the compensation rate payable within the warzone
area as prescribed in this Contract.
D. No compensation and benefits shall be payable in respect of any injury, incapacity,
disability or death of the seafarer resulting from his willful or criminal act or
intentional breach of his duties, provided however, that the employer can prove that
such injury, incapacity, disability or death is directly attributable to the seafarer.
E. A seafarer who knowingly conceals a pre-existing illness or condition in the Pre-
Employment Medical Examination (PEME) shall be liable for misrepresentation
and shall be disqualified from any compensation and benefits. This is likewise a just
cause for termination of employment and imposition of appropriate administrative
sanctions.
F. When requested, the seafarer shall be furnished a copy of all pertinent medical
reports or any records at no cost to the seafarer.
G. The amounts paid to the seafarer due to accidental or natural death, or permanent
total disablement by virtue of the provisions of RA 8042 as amended by RA 10022
and its implementing rules and regulations shall form part of and shall be deducted
from the total amount that the seafarer is determined to be finally entitled to under
this Contract.
H. Subsistence allowance benefit as provided in RA 8042, as amended by RA 10022.
The principal/employer/company shall grant to the seafarer who is involved in a
case or litigation for the protection of his rights in a foreign country, a subsistence
allowance of at least One Hundred United States Dollars (US$100) per month for a
maximum of six (6) months.
I. Compassionate Visit as provided in RA 8042, as amended by RA 10022. When a
seafarer is hospitalized and has been confined for at least seven (7) consecutive
days, he shall be entitled to a compassionate visit by one (1) family member or a
requested individual. The employer shall pay for the transportation cost of the
family member or requested individual to the major airport closest to the place of
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hospitalization of the seafarer. It is, however, the responsibility of the family
member or requested individual to meet all visa and travel document requirements;
AHaETS
J. The seafarer or his successor in interest acknowledges that payment for injury,
illness, incapacity, disability or death and other benefits of the seafarer under this
contract and under RA 8042, as amended by RA 10022, shall cover all claims in
relation with or in the course of the seafarer's employment, including but not limited
to damages arising from the contract, tort, fault or negligence under the laws of the
Philippines or any other country.
SECTION 21. War and Warlike Operations Allowance. —
A. The POEA shall be the sole authority to determine whether the ship is within a war
risk trading area. It shall also determine the amount of premium pay to which the
seafarer shall be entitled to when sailing in that war-risk trading area.
B. The seafarer when sailing within a war-risk trading area shall be entitled to such
premium pay as the POEA may determine through appropriate periodic issuances.
C. If at the time of the signing of the contract, an area is declared a war or war-risk
trading area and the seafarer binds himself in writing to sail into that area, the
agreement shall be properly appended to the Contract for verification and approval
by the Philippine Overseas Employment Administration (POEA).The seafarer shall
comply with the agreement or shall bear his cost of repatriation when he opts not to
sail into a war or war-risk trading area.
D. If a war or warlike operations should arise during the term of this Contract in any
country within the ship's trading area, the seafarer may sail with the ship within and
out of the trading area if required by the Master.
SECTION 22. Termination Due to Shipwreck and Ship's Foundering. —
Where the ship is wrecked necessitating the termination of employment before the date
indicated in the contract, the seafarer shall be entitled to earned wages, medical
examination at employer's expense to determine his fitness to work, repatriation at
employer's cost and one month basic wage as termination pay.
In case of termination of employment of the seafarer before the expiration of the term of
his contract due to shipwreck, actual or constructive total loss or foundering of the ship,
the seafarer shall be entitled to earned wages, medical examination at employer's expense
to determine his fitness to work, repatriation at employer's cost and one month basic
wage as termination pay.
SECTION 23. Termination Due to Sale of Ship, Lay-Up or Discontinuance of
Voyage. —
Where the ship is sold, laid up, or the voyage is discontinued necessitating the
termination of employment before the date indicated in the Contract, the seafarer shall be
entitled to earned wages, repatriation at employer's cost and one (1) month basic wage as
termination pay, unless arrangements have been made for the seafarer to join another
ship belonging to the same principal to complete his contract in which case the seafarer
shall be entitled to basic wages until the date of joining the other ship.
SECTION 24. Termination Due to Unseaworthiness. —
A. If the ship is declared unseaworthy by a classification society, port state or flag
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state, the seafarer shall not be forced to sail with the ship.
B. If the ship's unseaworthiness necessitates the termination of employment before the
date indicated in the Contract, the seafarer shall be entitled to earned wages,
repatriation at cost to the employer and termination pay equivalent to one (1) month
basic wage.
SECTION 25. Termination Due to Regulation 1/4, Control Procedures of the 1978
STCW Convention, as Amended. —
If the seafarer is terminated and/or repatriated as a result of port state control
procedures/actions in compliance with Regulation 1/4 of the 1978 STCW Convention, as
amended, his termination shall be considered valid. However, he shall be entitled to
repatriation and earned wages and benefits only.
SECTION 26. Change of Principal. —
a) Where there is a change of Principal of the ship necessitating the pre-termination of
employment of the seafarer; the seafarer should be entitled to earned wages and
repatriation at employer's expense. He shall also be entitled to one (1) month basic
pay as termination pay.
b) In case arrangements have been made for the seafarer to directly join another ship of
the same Principal to complete his contract, he shall only be entitled to basic wage
from the date of his disembarkation from his former ship until the date of his joining
the new ship.
SECTION 27. Loss of or Damage to Crew's Effects by Marine Peril. —
a) The seafarer shall be reimbursed by the employer the full amount of loss or damage
to his personal effects but in no case shall the amount exceed the Philippine
currency equivalent to the amount of Two Thousand US dollars (US$2,000) if his
personal effects are lost or damaged as a result of the wreck or loss or stranding or
abandonment of the ship or as a result of fire, flooding, collision or piracy.
b) In case of partial loss, the amount shall be determined by mutual agreement of both
parties but in no case to exceed the Philippine currency equivalent to the amount of
Two Thousand US dollars (US$2,000).
c) Reimbursement for loss or damage to the seafarer's personal effects shall not apply
if such loss or damage is due to (a) the seafarer's own fault; (b) larceny or theft or
(c) robbery.
d) Payment of any reimbursement shall be computed at the rate of exchange prevailing
at the time of payment.
SECTION 28. General Safety. —
a) The seafarer shall observe and follow any regulation or restriction that the master
may impose concerning safety, drug and alcohol and environmental protection.
b) The seafarer shall make use of all appropriate safety equipment provided him and
must ensure that he is suitably dressed from the safety point of view for the job at
hand.
SECTION 29. Dispute Settlement Procedures. —
In cases of claims and disputes arising from this employment, the parties covered by a
collective bargaining agreement shall submit the claim or dispute to the original and
exclusive jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators. If the
parties are not covered by a collective bargaining agreement, the parties may at their
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option submit the claim or dispute to either the original and exclusive jurisdiction of the
National Labor Relations Commission (NLRC), pursuant to Republic Act (RA) 8042
otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995, as
amended, or to the original and exclusive jurisdiction of the voluntary arbitrator or panel
of arbitrators. If there is no provision as to the voluntary arbitrators to be appointed by
the parties, the same shall be appointed from the accredited voluntary arbitrators of the
National Conciliation and Mediation Board of the Department of Labor and
Employment.

The Philippine Overseas Employment Administration (POEA) shall exercise original and
exclusive jurisdiction to hear and decide disciplinary action on cases, which are
administrative in character, involving or arising out of violations of recruitment laws,
rules and regulations involving employers, principals, contracting partners and Filipino
seafarers.

SECTION 30. Prescription of Action. —

All claims arising from this contract shall be made within three (3) years from the date
the cause of action arises, otherwise the same shall be barred.

SECTION 31. Applicable Law. —

Any unresolved dispute, claim or grievance arising out of or in connection with this
contract including the annexes thereof, shall be governed by the laws of the Republic of the
Philippines, international conventions, treaties and covenants to which the Philippines is a
signatory.

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ENFORCEMENT MECHANISM
(FOR WAGES AND OTHER BENEFITS)
Labor Code: Articles 128-129, 306-307
CHAPTER VI
Administration and Enforcement
ARTICLE 128. Visitorial and Enforcement Power. —
(a) The Secretary of Labor and Employment or his duly authorized representatives,
including labor regulation officers, shall have access to employer's records and premises at
any time of the day or night whenever work is being undertaken therein, and the right to
copy therefrom, to question any employee and investigate any fact, condition or matter
which may be necessary to determine violations or which may aid in the enforcement of this
Code and of any labor law, wage order or rules and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 88 of this Code to the contrary,
and in cases where the relationship of employer-employee still exists, the Secretary of
Labor and Employment or his duly authorized representatives shall have the power to issue
compliance orders to give effect to the labor standards provisions of this Code and other
labor legislation based on the findings of labor employment and enforcement officers or
industrial safety engineers made in the course of inspection. The Secretary or his duly
authorized representatives shall issue writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where the employer contests the findings of the
labor employment and enforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection.
An order issued by the duly authorized representative of the Secretary of Labor and
Employment under this Article may be appealed to the latter. In case said order involves a
monetary award, an appeal by the employer may be perfected only upon the posting of a
cash or surety bond issued by a reputable bonding company duly accredited by the
Secretary of Labor and Employment in the amount equivalent to the monetary award in the
order appealed from.
(c) The Secretary of Labor and Employment may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-
compliance with the law or implementing rules and regulations poses grave and imminent
danger to the health and safety of workers in the workplace. Within twenty-four hours, a
hearing shall be conducted to determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case the violation is attributable to the
fault of the employer, he shall pay the employees concerned their salaries or wages during
the period of such stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise
render ineffective the orders of the Secretary of Labor and Employment or his duly
authorized representatives issued pursuant to the authority granted under this Article, and no
inferior court or entity shall issue temporary or permanent injunction or restraining order or
otherwise assume jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of authority, under this
Article shall, after appropriate administrative investigation, be subject to summary dismissal
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from the service.
(f) The Secretary of Labor and Employment may, by appropriate regulations, require
employers to keep and maintain such employment records as may be necessary in aid of his
visitorial and enforcement powers under this Code.
ARTICLE 129. Recovery of Wages, Simple Money Claims and Other Benefits. —
Upon complaint of any interested party, the Regional Director of the Department of Labor
and Employment or any of the duly authorized hearing officers of the Department is
empowered, through summary proceeding and after due notice, to hear and decide any
matter involving the recovery of wages and other monetary claims and benefits, including
legal interest, owing to an employee or person employed in domestic or household service
or househelper under this Code, arising from employer-employee relations: Provided, That
such complaint does not include a claim for reinstatement: Provided, further, That the
aggregate money claims of each employee or househelper do not exceed five thousand
pesos (P5,000.00). The Regional Director or hearing officer shall decide or resolve the
complaint within thirty (30) calendar days from the date of the filing of the same. Any sum
thus recovered on behalf of any employee or househelper pursuant to this Article shall be
held in a special deposit account, and shall be paid, on order of the Secretary of Labor and
Employment or the Regional Director directly to the employee or househelper concerned.
Any such sum not paid to the employee or househelper, because he cannot be located after
diligent and reasonable effort to locate him within a period of three (3) years, shall be held
as a special fund of the Department of Labor and Employment to be used exclusively for the
amelioration and benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this
provision may be appealed on the same grounds provided in Article 223 91 of this Code,
within five (5) calendar days from receipt of a copy of said decision or resolution, to the
National Labor Relations Commission which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its rules.
The Secretary of Labor and Employment or his duly authorized representative may
supervise the payment of unpaid wages and other monetary claims and benefits, including
legal interest, found owing to any employee or house helper under this Code.
ARTICLE 306. Money Claims. —
All money claims arising from employer-employee relations accruing during the effectivity
of this Code shall be filed within three (3) years from the time the cause of action accrued;
otherwise they shall be forever barred.
All money claims accruing prior to the effectivity of this Code shall be filed with the
appropriate entities established under this Code within one (1) year from the date of
effectivity, and shall be processed or determined in accordance with the implementing rules
and regulations of the Code; otherwise, they shall be forever barred.
Workmen's compensation claims accruing prior to the effectivity of this Code and during
the period from November 1, 1974 up to December 31, 1974, shall be filed with the
appropriate regional offices of the Department of Labor not later than March 31, 1975;
otherwise, they shall forever be barred. The claims shall be processed and adjudicated in
accordance with the law and rules at the time their causes of action accrued.
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ARTICLE 164. When Emergency Hospital Not Required. —

The requirement for an emergency hospital or dental clinic shall not be applicable in case
ARTICLE 307. Institution of Money Claims. —
there is a hospital or dental clinic which is accessible from the employer's establishment and
Money claims specified in the immediately preceding Article shall be filed before the
he makes arrangement for the reservation therein of the necessary beds and dental facilities
appropriate entity independently of the criminal action that may be instituted in the proper
for the use of his employees.
courts.
ARTICLE 165. Health Program. —
Pending the final determination of the merits of money claims filed with the appropriate The physician engaged by an employer shall, in addition to his duties under this Chapter,
entity, no civil action arising from the same cause of action shall be filed with any court. develop and implement a comprehensive occupational health program for the benefit of the
This provision shall not apply to employees' compensation cases which shall be processed employees of his employer.
and determined strictly in accordance with the pertinent provisions of this Code.
ARTICLE 166. Qualifications of Health Personnel. —
The physicians, dentists and nurses employed by employers pursuant to this Chapter shall
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
have the necessary training in industrial medicine and occupational safety and health. The
Medical Dental and Occupational Safety, Articles 162-171
Secretary of Labor and Employment, in consultation with industrial, medical, and
occupational safety and health associations, shall establish the qualifications, criteria and
TITLE I
conditions of employment of such health personnel.
Medical, Dental and Occupational Safety
CHAPTER I
ARTICLE 167. Assistance of Employer. —
Medical and Dental Services
It shall be the duty of any employer to provide all the necessary assistance to ensure the
ARTICLE 162. First-Aid Treatment. —
adequate and immediate medical and dental attendance and treatment to an injured or sick
Every employer shall keep in his establishment such first-aid medicines and equipment as
employee in case of emergency.
the nature and conditions of work may require, in accordance with such regulations as the
Department of Labor and Employment shall prescribe.
CHAPTER II
The employer shall take steps for the training of a sufficient number of employees in first-
Occupational Health and Safety
aid treatment.
ARTICLE 163. Emergency Medical and Dental Services. —
ARTICLE 168. Safety and Health Standards. —
It shall be the duty of every employer to furnish his employees in any locality with free
The Secretary of Labor and Employment shall, by appropriate orders, set and enforce
medical and dental attendance and facilities consisting of:
mandatory occupational safety and health standards to eliminate or reduce occupational
(a) The services of a full-time registered nurse when the number of employees exceeds fifty
safety and health hazards in all workplaces and institute new, and update existing, programs
(50) but not more than two hundred (200) except when the employer does not maintain
to ensure safe and healthful working conditions in all places of employment.
hazardous workplaces, in which case, the services of a graduate first-aider shall be provided
for the protection of workers, where no registered nurse is available. The Secretary of Labor
ARTICLE 169. Research. —
and Employment shall provide by appropriate regulations the services that shall be required
It shall be the responsibility of the Department of Labor and Employment to conduct
where the number of employees does not exceed fifty (50) and shall determine by
continuing studies and research to develop innovative methods, techniques and approaches
appropriate order, hazardous workplaces for purposes of this Article;
for dealing with occupational safety and health problems; to discover latent diseases by
establishing causal connections between diseases and work in environmental conditions;
(b) The services of a full-time registered nurse, a part-time physician and dentist, and an
and to develop medical criteria which will assure insofar as practicable that no employee
emergency clinic, when the number of employees exceeds two hundred (200) but not more
will suffer impairment or diminution in health, functional capacity, or life expectancy as a
than three hundred (300); and
result of his work and working conditions.
(c) The services of a full-time physician, dentist and a full-time registered nurse as well as a
ARTICLE 170. Training Programs. —
dental clinic and an infirmary or emergency hospital with one bed capacity for every one
The Department of Labor and Employment shall develop and implement training programs
hundred (100) employees when the number of employees exceeds three hundred (300).
to increase the number and competence of personnel in the field of occupational safety and
industrial health.
In cases of hazardous workplaces, no employer shall engage the services of a physician or a
dentist who cannot stay in the premises of the establishment for at least two (2) hours, in the
ARTICLE 171. Administration of Safety and Health Laws. —
case of those engaged on part-time basis, and not less than eight (8) hours, in the case of
(a) The Department of Labor shall be solely responsible for the administration and
those employed on full-time basis. Where the undertaking is non-hazardous in nature, the
enforcement of occupational safety and health laws, regulations and standards in all
physician and dentist may be engaged on retained basis, subject to such regulations as the
establishments and workplaces wherever they may be located; however, chartered cities
Secretary of Labor and Employment may prescribe to insure immediate availability of
may be allowed to conduct industrial safety inspections of establishments within their
medical and dental treatment and attendance in case of emergency.
respective jurisdictions where they have adequate facilities and competent personnel for the

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purpose as determined by the Department of Labor and subject to national standards
established by the latter.
(b) The Secretary of Labor may, through appropriate regulations, collect reasonable fees for
the inspection of steam boilers, pressure vessels and pipings and electrical installations, the
test and approval for safe use of materials, equipment and other safety devices and the
approval of plans for such materials, equipment and devices. The fee so collected shall be
deposited in the national treasury to the credit of the occupational safety and health fund
and shall be expended exclusively for the administration and enforcement of safety and
other labor laws administered by the Department of Labor.
EMPLOYEES’ COMPENSATION
Articles 172-178
TITLE II
Employees Compensation and State Insurance Fund
CHAPTER I
Policy and Definitions
ARTICLE 172. Policy. —
The State shall promote and develop a tax-exempt employees' compensation program
whereby employees and their dependents, in the event of work-connected disability or
death, may promptly secure adequate income benefit and medical related benefits.
ARTICLE 173. Definition of Terms. —
As used in this Title, unless the context indicates otherwise:
a. "Code" means the Labor Code of the Philippines instituted under Presidential Decree
Numbered Four Hundred Forty-Two, as amended.
b. "Commission" means the Employees' Compensation Commission created under this
Title.
c. "SSS" means the Social Security System created under Republic Act Numbered Eleven
Hundred Sixty-One, as amended.
d. "GSIS" means the Government Service Insurance System created under
Commonwealth Act Numbered One Hundred Eighty-Six, as amended. DHIcET
e. "System" means the SSS or GSIS, as the case may be.
f. "Employer" means any person, natural or juridical, employing the services of the
employee.
g. "Employee" means any person compulsorily covered by the GSIS under
Commonwealth Act Numbered One Hundred Eighty-Six, as amended, including the
members of the Armed Forces of the Philippines, and any person employed as casual,
emergency, temporary, substitute or contractual, or any person compulsorily covered
by the SSS under Republic Act Numbered Eleven Hundred Sixty-One, as amended.
h. "Person" means any individual, partnership, firm, association, trust, corporation or
legal representative thereof.
i. "Dependents" means the legitimate, legitimated, legally adopted or acknowledged
natural child who is unmarried, not gainfully employed, and not over twenty-one years
of age or over twenty-one years of age provided he is incapable of self-support due to a
physical or mental defect which is congenital or acquired during minority; the
legitimate spouse living with the employee; and the parents of said employee wholly
dependent upon him for regular support.
j. "Beneficiaries" means the dependent spouse until he/she remarries and dependent
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children, who are the primary beneficiaries. In their absence, the dependent parents and
subject to the restrictions imposed on dependent children, the illegitimate children and
legitimate descendants, who are the secondary beneficiaries: Provided, That the
dependent acknowledged natural child shall be considered as a primary beneficiary
when there are no other dependent children who are qualified and eligible for monthly
income benefit.
k. "Injury" means any harmful change in the human organism from any accident arising
out of and in the course of the employment. 115
l. "Sickness" means any illness definitely accepted as an occupational disease listed by
the Commission, or any illness caused by employment subject to proof that the risk of
contracting the same is increased by working conditions. For this purpose, the
Commission is empowered to determine and approve occupational diseases and work-
related illnesses that may be considered compensable based on peculiar hazards of
employment.
m. "Death" means loss of life resulting from injury or sickness.
n. "Disability" means loss or impairment of a physical or mental function resulting from
injury or sickness.
o. "Compensation" means all payments made under this Title for income benefits and
medical or related benefits.
p. "Income benefit" means all payments made under this Title to the employee or his
dependents.
q. "Medical benefit" means all payments made under this Title to the providers of
medical care, rehabilitation services and hospital care.
r. "Related benefit" means all payments made under this Title for appliances and
supplies.
s. "Appliances" means crutches, artificial aids and other similar devices.
t. "Supplies" means medicine and other medical, dental or surgical items.
u. "Hospital" means any medical facility, government or private, authorized by law, an
active member in good standing of the Philippine Hospital Association and accredited
by the Commission.
v. "Physician" means any doctor of medicine duly licensed to practice in the Philippines,
an active member in good standing of the Philippine Medical Association and
accredited by the Commission.
w. "Wages" or "Salary" insofar as they refer to the computation of benefits, means the
monthly remuneration as defined in Republic Act No. 1161, as amended, for SSS and
Presidential Decree No. 1146, as amended, for GSIS, respectively, except that part in
excess of Three Thousand Pesos.
x. "Monthly salary credit" means the wage or salary base for contributions as provided in
Republic Act Numbered Eleven hundred sixty-one, as amended, or the wages or
salary.
y. "Average monthly salary credit" in the case of the SSS means the result obtained by
dividing the sum of the monthly salary credits in the sixty-month period immediately
preceding the semester of death or permanent disability by sixty (60), except where the
month of death or permanent disability falls within eighteen (18) calendar months from
the month of coverage, in which case it is the result obtained by dividing the sum of all
monthly salary credits paid prior to the month of the contingency by the total number
of calendar months of coverage in the same period.
z. "Average daily salary credit" in the case of the SSS means the result obtained by
dividing the sum of the six (6) highest monthly salary credits in the twelve-month
period immediately preceding the semester of sickness or injury by one hundred eighty
(180), except where the month of injury falls within twelve (12) calendar months from
the first month of coverage, in which case it is the result obtained by dividing the sum
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of all monthly salary credits by thirty (30) times the number of calendar months of intention to injure or kill himself or another, notorious negligence, or otherwise provided
coverage in the period. under this Title.
aa. In the case of the GSIS, the average daily salary credit shall be the actual daily salary
or wage, or the monthly salary or wage divided by the actual number of working days
of the month of contingency.
bb. "Quarter" means a period of three (3) consecutive months ending on the last days of
March, June, September and December.
cc. "Semester" means a period of two consecutive quarters ending in the quarter of death,
permanent disability, injury or sickness.
dd. "Replacement ratio" the sum of twenty percent and the quotient obtained by dividing  
three hundred by the sum of three hundred forty and the average monthly salary credit.  
ee. "Credited years of service" for a member covered prior to January, 1975, nineteen
hundred seventy-five minus the calendar year of coverage, plus the number of calendar
years in which six or more contributions have been paid from January, 1975 up to the
calendar year containing the semester prior to the contingency. For a member covered
on or after January, 1975, the number of calendar years in which six or more
contributions have been paid from the year of coverage up to the calendar year
containing the semester prior to the contingency.
ff. "Monthly income benefit" means the amount equivalent to one hundred fifteen percent
of the sum of:
1) The average monthly salary credit multiplied by the replacement ratio; and
2) One and a half percent of the average monthly salary credit for each credited year
of service in excess of ten years;
3) Provided, That the monthly income benefit shall in no case be less than Two
Hundred Fifty Pesos (P250.00).

CHAPTER II
Coverage and Liability

ARTICLE 174. Compulsory Coverage. —

Coverage in the State Insurance Fund shall be compulsory upon all employers and their
employees not over sixty (60) years of age; Provided, That an employee who is over sixty
(60) years of age and paying contributions to qualify for the retirement or life insurance
benefit administered by the System shall be subject to compulsory coverage.

ARTICLE 175. Foreign Employment. —

The Commission shall ensure adequate coverage of Filipino employees employed abroad,
subject to regulations as it may prescribe.

ARTICLE 176. Effective Date of Coverage. —

Compulsory coverage of the employer during the effectivity of this Title shall take effect on
the first day of his operation, and that of the employee, on the date of his employment.

ARTICLE 177. Registration. —

Each employer and his employees shall register with the System in accordance with its
regulations.

ARTICLE 178. Limitation of Liability. —

The State Insurance Fund shall be liable for compensation to the employee or his dependents,
except when the disability or death was occasioned by the employee's intoxication, willful

133