BOOK III TITLE II WAGES and reasonable value" shall not

CHAPTER 1 PRELIMINARY include any profit to the employer, or to

MATTERS any person affiliated with the employer.
NOTE:
ART 97 DEFINITION a. Remuneration or earnings
b. Capable of being expressed in
Definitions. As used in this Title: terms of money –
FIXED/ASCERTAINED – time,
"Person" means an individual, task, piece, commission basis
partnership, association, corporation, c. Payable by an employer to an
business trust, legal representatives, or employee under a written or
any organized group of persons. unwritten contract

"Employer" includes any person acting i. Includes fair and reasonable

directly or indirectly in the interest of value
an employer in relation to an employee ii. Board
and shall include the government and iii. Lodging
all its branches, subdivisions and iv. Other facilities customarily
instrumentalities, all government- furnished by the employer to the
owned or controlled corporations and employee
institutions, as well as non-profit
private institutions, or organizations. Wages
- Applies to the compensation for
"Employee" includes any individual manual labor, skilled or
employed by an employer. unskilled, paid at stated times,
and measured by the day, week,
"Agriculture" includes farming in all its month, or season.
branches and, among other things, - Indicates inconsiderable pay for
includes cultivation and tillage of soil, a lower and less responsible
dairying, the production, cultivation, character of employment.
growing and harvesting of any - Domestic or menial servants,
agricultural and horticultural artisans, mechanics, laborers
commodities, the raising of livestock or Salary
poultry, and any practices performed by - Denotes a higher degree of
a farmer on a farm as an incident to or employment, or a superior grade
in conjunction with such farming of services, and implies a
operations, but does not include the position or office.
manufacturing or processing of sugar, - Suggestive of a larger and more
coconuts, abaca, tobacco, pineapples or permanent or fixed
other farm products. compensation for more
important service.
"Employ" includes to suffer or permit  SC – wages and salary are
to work. synonymous.

"Wage" paid to any employee shall Wage Includes Sales Commissions

mean the remuneration or earnings,  Both words generally refer to one
however designated, capable of being and the same meaning – reward
expressed in terms of money, whether or recompense for services
fixed or ascertained on a time, task, performed.
piece, or commission basis, or other  Salary should also include
method of calculating the same, which earned sales commission.
is payable by an employer to an
employee under a written or unwritten Songco et al. v. NLRC
contract of employment for work done Facts:
or to be done, or for services rendered
or to be rendered and includes the fair Issue:
and reasonable value, as determined by
the Secretary of Labor and Ruling:
Employment, of board, lodging, or
other facilities customarily furnished Wage Includes Facilities or
by the employer to the employee. "Fair Commodities
 - Art 9(f) includes the fair and
reasonable value of board,
lodging, or other facilities
customarily furnished by the
employer of the employee.
- IRR Book III Rule VII Sec 4 –
as regards meals and snacks, the
employer may deduct from the
wages not more than 70% of the
value of the metals and snacks
enjoyed by the employees,
provided that such deduction is
authorized in writing by the
employees.
- 30% to be subsidized by the
employer
Facilities Distinguished from
Supplements
Facilities
- Shall include articles or services
for the benefit of articles or
service primarily for the benefit
of the employer or necessary to
the conduct of the employer’s
business.
- Wage-deductible
State Marine Corporation and Royal
Line v. Cebu Seamen’s Association
 Supplements constitute extra
remuneration or special
privileges or benefits given to or
received by the laborers over and
above their ordinary earnings or
wages.
 Facilities – items of expense
necessary for the laborer’s and
family’s existence and
subsistence, they form part of
the wage and when furnished by
the employer are deductible
therefrom.
 Facility is wage-deductible,
supplement is not.
Requirements for Deducting Value of
Facilities [ C-V-C ]
1. Proof must be shown that such
facilities are customarily furnished by
trade.
2. The provision of deductible facilities
must be voluntarily accepted in
writing by the employee.
3. Facilities must be charged at fair
and reasonable value.
Salary Excludes Allowances
- From the basic salary or wage in
the computation of the amount
of retirement and other benefits
payable to an employee.
Salary Distinguished from Gratuity
Gratuity
- Given freely, without
recompense; a gift or something
voluntarily given in return of a
favor of services; a bounty; tip.
- Gratuity Pay – not intended to
pay a worker for actual services
rendered.
- It is a money benefit given to the
workers whose purpose is to
reward employees who have
rendered satisfactory and
efficient service to the company.
Fair Day’s Wage for Fair Day’s Labor
 A fair day’s wage for a fair day’s
labor continues to govern the
relation between labor and
capital and remains a basic
factor in determining employees’
wages.
Equal Pay for Equal Work
- Employees working in the
Philippines, if performing similar
functions and responsibilities
under similar working conditions
be paid equal pay for equal work.
Int’l School Alliance of Educators v.
Quisumbing
- SC finds the point-of-hire
classification employed by
respondent School to justify the
distinction in the salary rates of
foreign-hires and local hires to
be an invalid classification
- There is no reasonable
distinction between the services
rendered by foreign-hires and
local-hires.
Agricultural Work
 Agricultural employees are
differentiated from the industrial.
- Work on the soil and its harvests
 When the harvests are processed
into finished product or
transformed to another product,
the processing work is industrial
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.
CHAPTER II – MINIMUM WAGE
RATES
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. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).
Statutory Minimum Wage
- lowest wage rate fixed by law
that an employer can pay his
workers.
 Compensation which is less than
such minimum wage rate is
considered an underpayment
that violates the law.
 Art 99 recognizes that there are
minimum wage rates for
agricultural and for non-
agricultural employees.
Minimum Wage; Need for Margin
Over the Minimum Wage
- It should be noted that the
establishment of minimum
wages is a prerequisite to the
adoption of needed social
security program.
-it benefits the low employees
Ability to Pay Immaterial
- Employer cannot exempt himself
from liability to pay minimum
wages because of poor financial
condition of the company, the
payment of minimum wages not
being dependent on the
employer’s ability to pay.
- Lack of fund is not a valid
defense to excuse from paying
minimum wage because the
payment of such wage is a
mandatory statutory obligation.
GR: Employees Not Estopped to Sue
for Difference in Amount of Wages
- No estoppel for employees if they
accept lower wages
Exemptions UNDER THE IRR
XPNs to the coverage of the rule on
minimum wages:
a. household or domestic helpers,
including family drivers, & persons in
the personal service of another
b. homeworkers in the needle-work
c. workers employed registered in the
NCID
d. workers in any duly registered
cooperative
 Cooperatives may still be
exempted from Minimum Wage
Law
RA 9178 BMBE Act of 2002
- Encourages the establishment of
barangay micro business
enterprises to serve as seedbeds
for developing entrepreneurship
and to integrate the informal
with the formal sectors of the
economy.
Sec 8 – Exemption from the Coverage
of the Minimum Wage Law
- PROVIDED, all employees under
the Act be entitled to the same
benefits given to any regular
employee – SOCIAL SECURITY
AND SOCIAL BENEFITS.
Barangay Micro Business Enterprise
- Any business entity or enterprise
engaged in the production,
processing, or manufacturing of
products or commodities,
including those arising from
loans but exclusive of the land
on which the particular business
entity’s office, plant and
equipment are situated.
Exemption of Retail and Service
Establishments
RA 6727 Wage Rationalization Act
- Provides for the statutory
minimum wage rate of all
workers and employees in the
private sector.
- XPN: retail and service
establishments regularly
employing NOT MORE THAN 10
WORKERS
 The exemption of retail/service
establishments in RA 6727 is
similar to the exceptions stated
 in Art 94 on holiday pay and Art 2. The practice is consistent and
95 on service incentive leave. deliberate
 Exemptions from holiday pay 3. The practice is not due to error
and SIL apply to establishments in the construction or
employing “less than ten” application of a doubtful or
employees, meaning one to nine. difficult question of law
 The minimum wage exemption 4. The diminution or
specifies “not more than ten” discontinuance is done
employees, meaning one to ten. unilaterally by the employer.

Retail Enterprise Food or Meal Allowance

- One engaged in the sale of goods
that are commonly brought by
private individuals for personal Noncontributory Retirement Plan
household use and its
characterized by small sales.
- To qualify for the exemption, the Monthly ECOLA
retail or service enterprise must
prove that it is engaged in Full 13th-Month Pay
selling goods and services or
both.  The Principle of Non-
Sales Enterprise Diminution of Benefits is
- Engaged predominantly in founded on the constitutional
providing personal service to mandate to protect the rights of
individuals for their own or workers and promote their
household use. welfare and to afford labor full
protection.
Regular Employing
Regularly – regular manner Critique: Why Apply Article 100 to
Regularly employ – more or less Benefits Initiated Long After
uniform or usual number of employees Promulgation of the Labor Code

 Casual or seasonal employees Exceptions to the NonDiminution

(except when it operates on a
seasonal basis) are not regularly
employed within the meaning of
the law.
 Those employed in order to meet
an extraordinary or abnormal
business demand should not be
considered in determining the
number of employees regularly
employed by a retail or service
enterprise for purposes of the
exemption.
 Probational employment or
learners/apprentices shall be
considered in determining the
exemption of enterprise.
ART 100 PROHIBITION AGAINST
ELIMINATION OR DIMINUTION
NONDIMINUTION OF BENEFITS;
Requisites [ - P-Co-N-D ]
1. The grant of the benefit is
founded on a policy or has
ripened into a practice over a
long period
Rule
[ Co-N-Wa-Re Pro-Be-Con ]
1. Correction of error
2. Negotiated Benefits
3. Wage order compliance
4. Benefits on reimbursement basis
5. Reclassification of position
6. Contingent benefits or
conditional bonus
7. Productivity incentives
 Bonus is an amount granted and
paid to an employee for his
industry and loyalty which
contributed to the success of the
employer’s business and made
possible the realization of profits.
 Bonus is not a demandable and
enforceable obligation.
 XPN: when it is made a part of
the wage or salary or
compensation.
 If there is no agreement that
bonus forms part of the
employee’s cpmpensation,
BONUS would depend on the
profit to be realized.
  An employer cannot be forced to
distribute bonuses which it can
no longer afford to pay.
 Even is a bonus is NOT
demandable for not being part of
the salary, or not stipulated in
the CBA, BONUS may
nevertheless be granted on
equitable consideration.
 Grant of gratuity or bonus by
reason of its long and regular
concession, may be regarded as
part of regular compensation.
 Employees whose employment
has been terminated may still
demand payment of service
award under company policy
including anniversary and
performance bonuses,
considering they already had
rendered the service required.
The right is not defeated by a
release and quitclaim.
ART 101 PAYMENT BY RESULTS
WORKERS PAID BY RESULTS, IN
GENERAL
- Speaks of workers whose pay
calculated not on the basis of
time spent on the job but of the
quantity and quality or the kind
of work they turn out.
- They do noontime work.
Grouped by Bureau of Working
Conditions
1. Supervised by the Employer –
there is element of control
2. Unsupervised by the Employer
 Payment of result is a method of
compensation and does not
define the essence of the relation.
 It is a method of computing
compensation, not a basis for
determining the existence or
absence of employer-employee
relationship.
BASIS OF OUTPUT PAY-RATE
Legal Sufficiency of the Piece-Rate
1. Those who are paid piece rates which
are prescribed in Piece Rate Orders
issued by DOLE – NUMBER OF PIECES
X RATE PER PIECE
2. Those who are paid output rates
which are prescribed by the employer
and are not yet approved by the DOLE.
- NUMBER OF PIECES X RATE PER
PIECE (Determined by the Employer)
ENTITLEMENT OF PIECE-RATE
WORKERS TO NIGHT DIFFERENTIAL
AND SERVICE INCENTIVE LEAVE
Rules on Night Differential and Service
Incentive Leave do not apply to:
- Unsupervised by the employers
- Contractual Tasks
- Commission Basis
- Paid by a fixed amount for
performing work irrespective of
the time consumed in the
performance thereof.
 Workers paid by results whose
time and performance are
supervised by the employer are
covered by the Rules and
benefits.
ENTITLEMENT TO HOLIDAY PAY
- Piece-rate employee is entitled to
holiday pay.
ENTITLEMENT TO 13TH MONTH PAY
- PD 851 exempts from the
payment of 13th month pay
employers of those who are paid
a fixed amount for performing
specific work.
- XPN: workers are paid on a
piece-rate basis in which case
the employer shall grant the 13th
month pay to such workers.
- To be entitled to 13th month pay,
piece-rate worker should have
rendered at least one month or
service during the calendar year.
VARIANT JURISPRUDENCE ON PIECE-
RATE WORKERS’ ENTITLEMENT TO
STATUTORY BENEFITS: THE MAKATI
HABERDASHERY CASE
Summation: Benefits Payable to
Piece-Rate Workers
1. applicable statutory minimum wage
rate
2. yearly service incentive leave of five
days with pay
3. night shift differential pay
4. holiday pay
5. meal and rest periods
6. overtime pay (conditional)
7. premium pay (conditional)
8. 13th month pay
9. other benefits granted by
law/individual/collective
agreement/company policy or practice.
XPN: An appropriate order prescribing
their output rates has been issued by
the DOLE or their output rates conform
with the standards prescribed by the
LC.
 The rate-per-piece to be paid to a
worker should be dismissed to
DOLE for approval.
Failure to Reach Quota
- Less earnings for the paid-by-
result worker
- Persistent failures may even
mean demolition or loss of job.
CHAPTER III – PAYMENT OF WAGES
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
such manner of payment is customary
on the date of effectivity of this Code, or
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.
PROOF OF WAGE PAYMENT
- Where the employee alleges non-
payment of wages and/or
commission, the employer has
the burden to prove payment.
ART 103 TIME OF PAYMENT
Wages shall be paid at least
once every two (2) weeks or twice a
month at intervals not exceeding
sixteen (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 two (2)
weeks shall be subject to the following
conditions, in the absence of a
collective bargaining agreement or
arbitration award:
That payments are made at
intervals not exceeding sixteen (16)
days, in proportion to the amount of
work completed;
That final settlement is made
upon completion of the work.
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.
GR: Place of payment – at the or near
the place of undertaking.
XPNs:
1. Deterioration of peace and order
conditions
2. Employer provides free
transportation to the employees
back and forth
3. Under analogous circumstances
4. Employment in establishments
as bar, night clubs, drinking,
dance hall, etc.
Payment Through Banks; Requisites
- All private establishments with
25 or more employees
- located within one kilometer
radius to a commercial,
savings, rural bank – PAY THE
WAGES and other BENEFITS.
 Payment of wages through ATM
is allowed under labor advisory
in 1996.
Article 105. DIRECT PAYMENT OF
WAGES
Wages shall be paid directly to
the workers to whom they are due,
except:
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
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.
GR: Wages be directly paid to whom
it is due.
XPNs:
1. In case of force majeure, worker may
be paid through another person under
written authority given by the worker.
2. If worker died, heirs shall be paid
without necessity of intestate
proceedings.
- if there are many heirs, DOLE
representative shall be the referee in
dividing the amount.
Article 106. CONTRACTOR OR
SUBCONTRACTOR
Whenever an employer enters
into a contract with another person for
the performance of the former’s work,
the employees of the contractor and of
the latter’s subcontractor, if any, shall
be paid in accordance with the
provisions of this Code.
In the event that the contractor
or subcontractor fails to pay the wages
of his employees in accordance with
this Code, the employer shall be jointly
and severally liable with his contractor
or subcontractor to such employees to
the extent of the work performed under
the contract, in the same manner and
extent that he is liable to employees
directly employed by him.
The Secretary of Labor and
Employment may, by appropriate
regulations, restrict or prohibit the
contracting-out of labor to protect the
rights of workers established under this
Code. In so prohibiting or restricting, he
may make appropriate distinctions
between labor-only contracting and job
contracting as well as differentiations
within these types of contracting and
determine who among the parties
involved shall be considered the
employer for purposes of this Code, to
prevent any violation or circumvention
of any provision of this Code.
There is "labor-only" contracting
where the person supplying workers
to an employer does not have
substantial capital or investment in
the form of tools, equipment,
machineries, work premises, among
others, and the workers recruited and
placed by such person are performing
activities which are directly related to
the principal business of such
employer. In such cases, the person or
intermediary shall be considered merely
as an agent 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.
Article 107. INDIRECT EMPLOYER
The provisions of the immediately
preceding article shall likewise apply to
any person, partnership, association or
corporation which, not being an
employer, contracts with an
independent contractor for the
performance of any work, task, job or
project.
Article 108. POSTING OF BOND
An employer or indirect employer
may require the contractor or
subcontractor to furnish a bond equal
to the cost of labor under contract, on
condition that the bond will answer for
the wages due the employees should
the contractor or subcontractor, as the
case may be, fail to pay the same.
Article 109. SOLIDARY LIABILITY
 The provisions of existing laws to c. Exercises direct control over
the contrary notwithstanding, every the performance of the
employer or indirect employer shall be workers
held responsible with his contractor or
subcontractor for any violation of any Contractee – contractor’s slient
provision of this Code. For purposes of
determining the extent of their civil Trilateral Relationship
liability under this Chapter, they shall 1. Principal – any employer which
be considered as direct employers. puts out job or farms out a job
2. Contractor – engaged and
CONTRACTING OR capacitated to independently
SUBCONTRACTING IN GENERAL undertake the performance of
the job/work
Guiding Principles and Definition 3. Contractor’s employee –
employed to perform or complete
CONTRACTING or SUBCONTRACTING a job
- An arrangement whereby a  Contractor-Contractee – Civil
principal agrees to put out or Code and Commercial laws
farm out with a contractor or mainly apply
subcontractor the performance  Contractor – Employees – Labor
or completion of a specific job, Code and SLL
work, or service within a definite  No EER for Principal &
or predetermined period; Contractor’s employees
REGARDLESS of whether such
job, work, or service is to be Prohibitions
performed or completed within or - EER may be declared to exist
outside the premises of the between the principal and the
principal. contractor’s workers where the
 C and S – expressly allowed by contracting arrangement is not
law and are subject to legitimate.
regulation for promotion of Unlawful Contracting
employment & observance of 1. Labor-only Contracting (LOC)
rights of workers: [ Ju-S-S-Co ] 2. Arrangement is unlawful or
o Just and Humane against public policy
conditions of work
o Security of tenure
o Self-organization
o Collective bargaining 1st SET OF PROHIBITION: LOC
- Legally wrong and prohibited
Four Features of Legitimate because it is an attempt to evade
Contracting [ Pa-Pe-L-S ] the obligations of an employer;
1. Parties amounts to employment
2. Specific Job avoidance.
3. Period CONTRACTING LOC
4. Location a. completion or a. not really
performance of a contracting
Attributes of a Job Contractor job, work, or b. arrangement
Legitimate Contracting – contracting service within a is merely to
by a legitimate contractor given period. recruit or place
people to be
What is contracted? employed,
- Performance and completion of a supervised, paid
designated job, not just by the employer.
supplying of people to do the job. c. Find and
supply people
Legitimate Contractor if: [ A-I-D ]
a. Conducts an independent How does the law identify a labor-
business only contractor?
b. With adequate capital - Not a full-fledged businessman
 - No discrete, adequately
capitalized, duly registered San Miguel Corp. v. Aballa et al.
business
- People he gathers are not under When is a Cooperative a Contractor-
his control/supervision Employer?

Essential Element of LOC Republic of the Phil., et. al. v. Asiapro

- Supplying workers to another Cooperative

Confirming Elements of LOC SUMMING UP

1. Lack of substantial A cooperative may adopt two
capital/investment & capacities at the same time:
performance of activities directly 1. Cooperative governed by the
related to the main business Cooperative Code
2. Contractor does not exercise 2. Labor Contractor covered by the
control over the performance of Labor Code and other labor laws.
employees
Workers Cooperative Cannot Engage
LOC = EE + CE1 or CE2 in Job Contracting
Labor Service Cooperative
 If the EE is absent, no LOC. - One engaged in providing service
Even if EE is present, but CE1 to a principal employer
or CE2 is absent, still no LOC. - Exclusively in job contracting
and subcontracting services to
Substantial Capital 3rd party
a. Corporation/Partnership/ Workers’ Cooperative
Cooperative – at least 3M paid- - Cooperative organized by
up capital stocks workers, including self-employed
b. Single Proprietorship – at least who are owners and members
3M net worth of the enterprise.
 NFCC (Net Financial Contracting - It cannot engage in contracting
Capacity) must be declared and and subcontracting activity
proven by the contractor
 Service Agreement between the Consequence of LOC: Worker
contractor and the principal Supplied by Agency Becomes
should stipulate a standard Employee of Client Company
administrative cost of not less
than 10% of the total contract PBC v. NLRC
cost.
Consequence of LOC: Agency-Hired
Control Employee Becomes Entitled to Benefits
- Control over the manner or under the CBA of the Client Company
method of doing the work
characterizes employment Tabas vs. California Manufacturing
- Control only of the desired result
of the work often indicates a SECOND SET OF PROHIBITIONS:
contracting arrangement ARRANGEMENTS THAT VIOLATE
PUBLIC POLICY (SEC 7 DO 18-A)
Control over Employees - These are not labor-only
- Employees may resign from their contracting but are prohibited
jobs to become contractors to because they contravene public
their former employer policy.
- EMPLOYER SHOULD CEASE Prohibitions
CONTROLLING THE MEANS 1.
AND METHOD OF DOING THE 2.
WORK CONTRACTED. 3.
4.
A cooperative as a labor contractor 5.
6.
When is a cooperative a Labor-Only 7.
contractor? 8.
 9. - Principal
- Contractor
Good Faith - Subcontractor
- Honest intention to abstain from
taking any unconscientious For Wages and Money Claims
advantage of another, even  Indirect employer cannot escape
through the forms and this liability even if he has paid
technicalities of the law. the worker’s wage rates in
accordance with the stipulations
EXTENT OF EMPLOYER’S LIABILITY in the contract with the
IN INVALID CONTRACTING AND contractor or agency.
OTHER VIOLATION OF OTHER  Indirect employer should not be
PROHIBITIONS held liable for wage differentials
- Direct and total liability of the incurred while the complainants
principal as that of a directly- were assigned to other
hiring employer. companies.

LEGITIMATE CONTRACTING: For Other Violations

INDEPENDENT CONTRACTOR/JOB Rosewood Processing Inc. vs. NLRC
CONTRACTING
1) Contractor must be registered in Payment before Reimbursement
accordance with the Rules and
carries a distinct and In Construction or Service Contracting,
independent business and Principal’s Liability Limited to the Wage
undertakes to perform the job; Increase Only
free from control & direction of NFA vs. Masada Security Agency
the principal
2) Contractor has substantial RIGHTS OF CONTRACTOR’S
capital and/or investment EMPLOYEES
3) Service Agreement ensures a. Safe and healthful working
compliance with all the rights conditions
and benefits under Labor Law b. Labor standards such as but not
 Independent Contractor – one limited to:
who exercises independent a. Incentive leave
employment and contracts to do b. Rest days
a piece of work according to his c. OT pay
own methods and without being d. Holiday pay
subject to control of his employer e. 13th-month pay
except as to the result of the f. Separation pay
work. c. Retirement benefits under
SSS/retirement plans of the
Judicial Notice of Job Contracting contractor
- Court has already taken judicial d. Social security and welfare
notice of the general practice benefits
adopted in several government e. Self-organizations, collective
and private institutions and bargaining, & peaceful concerted
industries of hiring independent activities
contractors to perform special f. Security of tenure
services.
 The Service Agreement must
A MANPOWER COMPANY MAY BE A conform to the DOLE Standard
LABOR-ONLY CONTRACTOR IN ONE Computation and Standard
CASE BUT AN INDEPENDENT Service Agreement.
CONTRACTOR IN ANOTHER
Security of Tenure
Escario vs. NLRC
Duties of the Principal
EXTENT OF PRINCIPAL’S LIABILITY IN
LEGITIMATE CONTRACTING Effect of Termination of Employment

Solidary Liability: REGISTRATION OF CONTRACTORS

 - Registration to the DOLE TWO CONCEPTS OF ATTORNEY’S
regional office where the FEES
applicant contractor principally 1) Ordinary Concept – attorney’s
operates fees is the reasonable
Should present: compensation paid to a lawyer
- Proof of substantial capital by his client for the legal
- Copy of registration certificates services the former has rendered
from regulatory government to the latter.
agencies – SEC, DTI etc - Basis of compensation is the fact
 Failure to register shall give rise of the attorney’s employment
to the presumption that the 2) Extraordinary Concept –
contractor is engaged in labor- attorney’s fees are deemed
only contracting. indemnity for damages ordered
by the court to be paid by the
Four Elements that Make Labor losing party in a litigation.
Contracting Legal and Legitimate [ R-
A-I-C ] AWARDED ATTORNEY’S FEE MAY
a. Registered properly in DOLE NOT EXCEED TEN PERCENT, BUT
b. Adequate capital BETWEEN LAWYER AND CLIENT
c. Independent business of the QUANTUM MERUIT MAY APPLY
contractor or performance of the Traders Royal Bank Employees Union-
contracted job free from control Independent vs. NLRC
of the principal
d. Control/supervision of the AWARD OF ATTORNEY’S FEE NOT
workers by the contractor LIMITED TO CASES OF WAGE
RECOVERY
Effect of Registration or Non-
Registration NON-LAYWERS NOT ENTITLED TO
ATTORNEY’S FEES

ART 110 WORKER PREFERENCE IN PAO LAWYERS

CASE OF BANCRUPTCY - Disqualified from being awarded
attorney’s fees are the lawyers
PREFERENCE OF WORKERS’ MONEY from PAO.
CLAIM
- Unpaid wages earned by the
employees before the declaration
of bankruptcy or judicial
liquidation of the employer’s
business shall be given 1st
preference & shall be paid in
full before other creditors may
establish any claim to a share in
the assets of the employer.

Coverage of the Preference

- Termination pay is reasonably
regarded as forming part of the
remuneration or other money
benefits accruing to the
employees or workers by reason
of their having previously
rendered services.
- Separation pay must be
considered as part of
remuneration for services
rendered or to be rendered.

ART 111 ATTORNEY’S FEES


CHAPTER IV – PROHIBITIONS
REGARDING WAGES
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.
Penalty for Violation of Art 112
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:
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;
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
In cases where the employer is
authorized by law or regulations issued
by the Secretary of Labor and
Employment.
DEDUCTIONS AUTHORIZED BY LAW
a. Deduction for value of meals &
other facilities
b. In cases where the employee is
insured with his consent by the
employer, deductions for the
amount paid by said employer,
as premiums on the insurance.
c. In cases where the right of the
employees or his union to check-
off has been recognized by the
employer or authorized in writing
by the individual employee
concerned.
d. Indebtedness of the employee
e. Wages subject to execution or
attachment limited to debts –
food, shelter, clothing, & medical
attendance
f. Withholding tax
g. Salary deductions of a member
of a legally established
cooperative
h. SSS, medicare, & PAG-IBIG
contributions
 An employee’s payment of
obligation to a third person is
deductible from the employee’s
wages if the deduction is
authorized in writing by the
employee.
Deductions for Absences
- Deductions for unpaid absences
allowed
Right to Reduce Workdays
 - Reduction is the number of days
is resorted to by the employer to
prevent serious losses due to
causes beyond his control
- Such reduction is valid.
Reduction of Wage/Allowances
- Employer may deduct the wages
and living allowances
corresponding to the days taken
off from the workweek.
- PROVIDED, there is absence of
an agreement specifically
providing that a reduction in the
number of workdays will not
adversely affect the
remuneration of the employees.
- Consistent with the No Work No
Pay Principle
Reduction of Workdays
- Employer may deduct wages
corresponding to the days taken
off from the work week
- Without prejudice to an
agreement or company policy
Unjustified Work Reduction:
Constructive Dismissal
- Reduction of work days that also
reduces the employee’s income
cannot be regarded as a
standard or routine employer’s
recourse
- Losses of the employer must be
shown by evidence
Unjustified Work Reduction:
Constructive Dismissal and ULP
- Reducing the workdays should
be done in good faith
- Not as a means to retaliate
against employees who unionized
ART 114 DEPOSITIS 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 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 is necessary or
desirable as determined by the
Secretary of Labor and Employment in
appropriate rules and regulations.
Article 115. Limitations.
No deduction from the deposits of an
employee for the actual amount of the
loss or damage shall be made unless
the employee has been heard thereon,
and his responsibility has been clearly
shown.
ILLEGAL DEPOSIT
- Art 113 & 114 LC are clear for
the actual exceptions to the
general rule that prohibits
deposits and deductions from the
employees’ salaries.
- Posting of cash bonds and the
making of deductions from the
wages would impose additional
burden upon the employees.
- A kasambahay or domestic
workers may not be required to
make deposits from which
deductions shall be made for the
reimbursement of loss or damage
of tools in the household.
Deduction for Loss or Damage
i. Employee is clearly shown to be
responsible for the loss
ii. Employee is given ample
opportunity to show cause why
deduction should not be made
iii. Amount of the deduction is fair
and reasonable and shall not
exceed the actual loss or damage
iv. Deduction from the employee’s
wage does not exceed 20% of the
employee’s wages in a week
Article 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.
Article 117. Deduction to ensure
employment. It shall be unlawful to
make any deduction from the wages of
any employee for the benefit of the
employer or his representative or
intermediary as consideration of a
promise of employment or retention in
employment.
Article 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 Article 121. Powers and functions of
discriminate against any employee who the Commission.
has filed any complaint or instituted
any proceeding under this Title or has The Commission shall have the
testified or is about to testify in such following powers and functions:
proceedings.
Dismissal as Retaliation To act as the national consultative and
- Dismissal of an employee is advisory body to the President of the
illegal if shown to be a Philippines and Congress on matters
consequence of his having filed a relating to wages, incomes and
complaint against his employer productivity;
who pays a minimum wage.
To formulate policies and guidelines on
Article 119. False reporting. It shall be wages, incomes and productivity
unlawful for any person to make any improvement at the enterprise, industry
statement, report, or record filed or and national levels;
kept pursuant to the provisions of this
Code knowing such statement, report To prescribe rules and guidelines for
or record to be false in any material the determination of appropriate
respect. minimum wage and productivity
measures at the regional, provincial, or
Records an Employer Must Keep industry levels;
a. Length of time to be paid
b. Rate of pay per month, week, To review regional wage levels set by the
day, hour etc Regional Tripartite Wages and
c. Amount due for regular work Productivity Boards to determine if
d. Amount due for overtime work these are in accordance with prescribed
e. Deductions made from the wages guidelines and national development
f. Amount actually paid plans;

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;

To review plans and programs of the

Regional Tripartite Wages and
Productivity Boards to determine
whether these are consistent with
national development plans;
CHAPTER V WAGE STUDIES, WAGE
AGREEMENTS, AND WAGE To exercise technical and
DETERMINATION administrative supervision over the
Regional Tripartite Wages and
ART 120 Creation of National Wages Productivity Boards;
and Productivity Commission.
To call, from time to time, a national
There is hereby created a National tripartite conference of representatives
Wages and Productivity Commission, of government, workers and employers
hereinafter referred to as the for the consideration of measures to
Commission, which shall be attached to promote wage rationalization and
the Department of Labor and productivity; and
Employment (DOLE) for policy and
program coordination. (As amended by To exercise such powers and functions
Republic Act No. 6727, June 9, 1989). 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 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 submitted by the workers’
and employers’ sectors, respectively,
and who shall serve for a term 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 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 Republic Act No. 6727,
June 9, 1989)
Article 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:
To develop plans, programs and
projects relative to wages, incomes and
productivity improvement for their
respective regions;
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;
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;
To coordinate with the other Regional
Boards as may be necessary to attain
the policy and intention of this Code;
To receive, process and act on
applications for exemption from
prescribed wage rates as may be
provided by law or any Wage Order; and
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 such order is affirmed. (As amended by
recommendation of the Secretary of Republic Act No. 6727, June 9, 1989)
Labor and Employment, to be made on
the basis of the list of nominees WAGE FIXING PROCEDURE
submitted by the workers’ and 1. Issuance of Wage Order
employers’ sectors, respectively, and 2. Contents of Wage Order
who shall serve for a term of five (5) 3. Frequency of Wage Order
years. 4. Effectivity of Wage Order
5. Implementing Rules/Regulations of
Each Regional Board to be headed by the Wage Order
its chairman shall be assisted by a 6. Review of Wage Order
Secretariat. (As amended by Republic
Act No. 6727, June 9, 1989)  An Appeal may be filed on the ff:
grounds:
PURPOSE OF CREATING THE RTWPB a. Non-conformity with
- Intention to rationalize wages prescribed guidelines and/or
a. Providing for full-time boards to procedure
police wages round-the-clock b. Questions of law
b. Giving the boards enough powers c. Grave abuse of discretion
to achieve this objective
RTWPB, NOT NWPC, APPROVES A
Article 123. Wage Order. WAGE ORDER
- NWPC prescribes rules and
Whenever conditions in the region so guidelines for determination of
warrant, the Regional Board shall appropriate minimum wage and
investigate and study all pertinent productivity measures at the
facts; and based on the standards and regional, provincial, or industry
criteria herein prescribed, shall proceed levels.
to determine whether a Wage Order - RTWPBs – empowered to
should be issued. Any such Wage Order determine and fix minimum
shall take effect after fifteen (15) days wage rates applicable in the
from its complete publication in at least region.
one (1) newspaper of general circulation
in the region. APPEAL
- The NWPC guidelines allow any
In the performance of its wage- party aggrieved by a Wage Order
determining functions, the Regional to appeal it to the Commission
Board shall conduct public within 10 days after the
hearings/consultations, giving notices publication of the order.
to employees’ and employers’ groups, - NWPC has the power to review
provincial, city and municipal officials regional levels, to review plans
and other interested parties. and programs of the RTWPB, and
to exercise technical and
Any party aggrieved by the Wage Order administrative supervision over
issued by the Regional Board may the RTWPB.
appeal such order to the Commission
within ten (10) calendar days from the PUBLIC HEARINGS AND
publication of such order. It shall be PUBLICATION, MANDATORY
mandatory for the Commission to
decide such appeal within sixty (60) Cagayan Sugar Milling Co. vs.
calendar days from the filing thereof. Secretary of Labor

The filing of the appeal does not stay Article 124. Standards/Criteria for
the order unless the person appealing minimum wage fixing.
such order shall file with the
Commission, an undertaking with a The regional minimum wages to be
surety or sureties satisfactory to the established by the Regional Board shall
Commission for the payment to the be as nearly adequate as is
employees affected by the order of the economically feasible to maintain the
corresponding increase, in the event 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:
The demand for living wages;
Wage adjustment vis-à-vis the
consumer price index;
The cost of living and changes or
increases therein;
The needs of workers and their families;
The need to induce industries to invest
in the countryside;
Improvements in standards of living;
The prevailing wage levels;
Fair return of the capital invested and
capacity to pay of employers;
Effects on employment generation and
family income; and
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.
Where the application of any prescribed
wage increase by virtue of a 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
unresolved, through voluntary
arbitration. Unless otherwise agreed by
the parties in writing, such dispute
shall be decided by the voluntary
arbitrators within ten (10) calendar
days from the time said dispute was
referred to voluntary arbitration.
In cases where there are no collective
agreements or recognized labor unions,
the employers and workers shall
endeavor to correct such distortions.
Any dispute arising therefrom shall be
settled through the National
Conciliation and Mediation Board and,
if it remains unresolved after ten (10)
calendar days of conciliation, shall be
referred to the appropriate branch of
the National Labor Relations
Commission (NLRC). It shall be
mandatory for the NLRC to conduct
continuous hearings and decide the
dispute within twenty (20) calendar
days from the time said dispute is
submitted for compulsory arbitration.
The pendency of a dispute arising from
a wage distortion shall not in any way
delay the applicability of any increase
in prescribed wage rates pursuant to
the provisions of law or wage order.
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 groups in an
establishment as to effectively obliterate
the distinctions embodied in such wage
structure based on skills, length of
service, or other logical bases of
differentiation.
All workers paid by result, including
those who are paid on piecework, takay,
pakyaw or task basis, shall receive not
less than the prescribed wage rates per
eight (8) hours of work a day, or a
proportion thereof for working less than
eight (8) hours.
All recognized learnership and
apprenticeship agreements shall be
considered automatically modified
insofar as their wage clauses are
concerned to reflect the prescribed wage
rates. (As amended by Republic Act No.
6727, June 9, 1989)
TWO METHODS OF MINIMUM WAGE
ADJUSTMENT
1. Fixing of determinate amount that
would be added to the prevailing
statutory minimum wage.
2. Salary Ceiling Method – wage
adjustment is applied to employees
receiving a certain denominated salary
ceiling.
REASONS FOR HAVING MINIMUM
WAGE
- Promote productivity-
improvement and gain-sharing
measures to ensure a decent
standard of living for the workers
and their families
- Guarantee the rights of labor to
its just share in the fruits of
production
- Enhance employment generation
in the countryside
- To affirm that labor as a primary
social economic force
WAGE DISTORTION
- 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 groups in an
establishment as to effectively
obliterate the distinctions
embodied in such wage structure
based on skills, length of service,
or other logical bases of
differentiation.”
- wage distortion is the effect of
increasing the pay of an
employee to such an amount
that equals, almost equals, or
overtakes another employee’s
pay which has not been similarly
increased.
 Salary distortion results from
the disappearance or virtual
disappearance of pay
differentials (between lower and
higher positions or between
senior and junior employees)
because of compliance with a
wage order.
Salary Restructuring; What is Not
Distortion
- One arising from compliance
with a wage order
Union to Prove Distortion
- complainant union to prove by
substantial evidence its assertion
of the existence of a wage
distortion.
Ways to Correct Distortion
- encourage the parties to seek
solution to the problem of wage
distortions
- through voluntary negotiation or
arbitration, rather than strikes,
lockouts, or
- other concerted activities of the
employees or management.
Rectification Need Not be Across-
The-Board
Summation of Principles About
Salary Distortion
a. concept of wage distortion
assumes an existing grouping or
classification of employees which
establishes distinctions among
such employees on some relevant
or legitimate basis.
b. Wage distortions have often been
the result of government-decreed
increases in minimum wages
Other Forms of Distortion
- merger of two companies
c. no legal requirement that the gap
which had previously existed be
restored in precisely the same
amount.
 correction of a wage
distortion may be done by
reestablishing a substantial
or significant gap (as
distinguished from the
historical gap) between the
wage rates of the differing
classes of employees.
d. reestablishment of a significant
wage difference may be done
through the grievance procedure or
collective bargaining
negotiations.
Wage Distortion: Nonstrikeable
- negotiate to correct the distortion
- grievance procedure or voluntary
arbitration
LIABILITY OF CONTRACTOR’S
PRINCIPAL IN CERTAIN INDUSTRIES
INSPECTION
- inspection procedure to verify
compliance with minimum wage
law
is described in R.A. No. 6727
- Department of Labor and
Employment shall conduct
inspections as often as possible
within its manpower constraint
of the payroll and other financial
records
- 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.
Article 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. (As amended by
Republic Act No. 6727, June 9, 1989)
Article 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. (As amended by Republic Act
No. 6727, June 9, 1989)
Article 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. (As amended
by Republic Act No. 6727, June 9,
1989)
CHAPTER VI – ADMINISTRATION
AND ENFORCEMENT
Article 128. Visitorial and
enforcement power.
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.
Notwithstanding the provisions of
Articles 129 and 217 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.
(As amended by Republic Act No. 7730,
June 2, 1994).
An order issued by the duly authorized his visitorial and enforcement
representative of the Secretary of Labor powers under this Code.
and Employment under this Article may
be appealed to the latter. In case said REGIONAL ADMINISTRATION AND
order involves a monetary award, an ENFORCEMENT OF LABOR LAWS
appeal by the employer may be  DOLE – primary policy,
perfected only upon the posting of a programming, and
cash or surety bond issued by a administrative entity of the
reputable bonding company duly government responsible of:
accredited by the Secretary of Labor a. Promotion of gainful
and Employment in the amount employment opportunities
equivalent to the monetary award in the and the optimization of
order appealed from. (As amended by the development and
Republic Act No. 7730, June 2, 1994) utilization of the country’s
resources
The Secretary of Labor and b. Advancement of workers’
Employment may likewise order welfare
stoppage of work or suspension of c. Maintenance of industrial
operations of any unit or department of peace
an establishment when non-compliance
with the law or implementing rules and
regulations poses grave and imminent 5 Regional Offices to Enforce Labor
danger to the health and safety of Laws in the Regional Level
workers in the workplace. Within I. DOLE Regional Office
twenty-four hours, a hearing shall be a. Administrative Division
conducted to determine whether an b. Labor Standards
order for the stoppage of work or Enforcement Division
suspension of operations shall be lifted c. Industrial Relations
or not. In case the violation is Division
attributable to the fault of the employer, d. Workers Amelioration and
he shall pay the employees concerned Welfare Division
their salaries or wages during the e. Employment Promotion
period of such stoppage of work or Division
suspension of operation. II. TESDA
III. Regional Arbitration Branch
It shall be unlawful for any person or (RAB) of the NLRC
entity to obstruct, impede, delay or IV. NCMB (National Conciliation
otherwise render ineffective the orders and Mediation Board)
of the Secretary of Labor and V. RTWPB (Regional Tripartite
Employment or his duly authorized Wage and Productivity Board)
representatives issued pursuant to the
authority granted under this Article,  Special Labor-Related Laws are
and no inferior court or entity shall administered or enforced by the
issue temporary or permanent concerned agencies such as the
injunction or restraining order or SSS, GSIS, PhilHealth regional
otherwise assume jurisdiction over any offices.
case involving the enforcement orders
issued in accordance with this Article. THE ENFORCEMENT FRAMEWORK
- Visitorial and Enforcement
Any government employee found guilty Power – remains as the primary
of violation of, or abuse of authority, framework in enforcing
under this Article shall, after compliance with labor laws.
appropriate administrative Objectives:
investigation, be subject to summary a. Inculcate a culture of voluntary
dismissal from the service. compliance with labor laws
b. Encourage the use of settlement
The Secretary of Labor and in all labor-cases
Employment may, by appropriate c. Ensure fair, expeditious, and
regulations, require employers to non-litigious settlement of
keep and maintain such employment disputes
records as may be necessary in aid of
 d. Strengthen tripartism among - RD has the power to order and
employers, employees, and administer compliance with the
government. labor standards provisions of LC
Labor Law Compliance System: and other legislation.
1. Joint Assessment - ENFORCEMENT ORDER –
2. Compliance Visit normally based on findings of
3. Occupational Safety and Health labor legislation officers or
Standards Investigation (OSHSI) industrial safety engineers
made in the course of
SCOPE OF VISITORIAL inspection.
ENFORCEMENT POWER UNDER ART - RD has no authority declare an
128 order or law unconstitutional
- Labor Secretary & his duly and his duty is merely to enforce
authorized representative, now the law which stands valid.
authorized to issue compliance
orders to give effect to the labor Unless Agreed Otherwise; Statutory
standards and other labor Benefits are Apart from Contractual
legislation. Benefits
Meycauayan College vs. Drilon
WHO DETERMINES THE EXISTENCE
OF EMPLOYER-EMPLOYEE Teachers’ Share in Tuition Fee Increase
RELATIONSHIP St. Joseph’s College vs. St. Joseph’s
Asia Pro Bombo Jethro & College Worker’s Association
Ruling Radyo Yakult Ruling
Ruling CBA Salary Increase Charged to the
NLRC – NLRC’s DOLE 70% Share
no labor Secretary/Regi Two Kinds of Salary Increase
exclusive arbiter – onal Director – 1. CBA-negotiated increase takes from
jurisdicti determi Quasi Judicial the university fund
on on nes the Power 2. the increase resulting from the
determini existenc incremental proceeds (IP) integration
ng e of EER
existence DISPOSITION OF LABOR STANDARD
of EER CASES
Regional DOLE is - A Labor Standard case is
Director empowered to processed administratively under
– not the determine Arts 128-129.
right EER subject - LABOR STANDARDS – refer to
person to judicial the min. requirements relating to
to judge review, not by wages, hours of work, cost-of-
existenc NLRC review. living allowance, and other
e of EER monetary and welfare benefits
because including occupational, safety,
it often and health standards.
becomes - RD exercise both visitorial and
a battle enforcement power over labor
of standard cases
evidence o Empowered to adjudicate
. money claims
o EER still exists
WORK RELATIONSHIP STILL o Findings of the regional
EXISTING office not contested by the
- For RD to exercise enforcement employer.
power under Art 128(b), work Inspection Report
relationship between the - LSWO (Labor Standards and
complaining workers and the Welfare Officer) handles reports
alleged employer must be on violations of labor standards
existing at the time the
complaint is presented. Coverage of Complaint Inspection
- Specific allegations or violations
Subjects of Enforcement
 - Thorough inquiry into the
verification of the compliance by
employer with existing labor
standards.
Restitution
- Within 5 calendar days from
receipt of the inspection
Compromise Agreement
- Be reduced in writing and signed
by the presence of parties, RD,
Rd representative
- A settlement that provides for an
amount of money far below the
sum legally due violates public
policy.
Hearing
- RD shall summon the employer
and the complainants to
summary investigation
Exception: Endorsement to NLRC
To divest the RD of jurisdiction:
1. the employer contests the findings of
labor regulations officer and raises
issues
2. there is a need to evidentiary matters
Such matters are not verifiable in the
normal course of inspection
APPEAL
- Order issues appealable to DOLE
Secretary
- Validity of quitclaim may be
assailed in an appeal to the labor
secretary despite the fact that
they were signed voluntarily and
under the supervision of the RD.
- QUITCLAIM is invalid and
against public policy if:
o There is a clear proof that
the waiver was wangled
from an unsuspecting or
gullible person
o Terms of settlement are
unconscionable on their
face
Who Benefits from Rectification
- Even non-complaining
employees may benefit from the
rectification order
Bond
- Appeal may be perfected only
upon the posting of a cash or
surety bond equivalent to the
monetary award
Enforcement of Wage Order
- DOLE to conduct inspections of
the payroll and financial
records to determine whether
workers are paid the
prescribed minimum wage.
Penalty for Non-Compliance; Double
Indemnity
Double Indemnity – payment to a
concerned employee of the prescribed
increases or adjustments in the wage
rate which was not paid by an employer
in an amount equivalent twice the
unpaid benefits owing to such
employee.
Unpaid Benefits – prescribed wage
rates which the employer failed to pay
upon the effectivity of a wage order,
exclusive of other wage-related benefits.
- Serves as the principal basis for
computing the double indemnity.
 Labor Arbiter, not only the
DOLE RD, may impose double
indemnity.
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 does 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 d. Aggregate money claim of each
this Article shall be held in a special claimant does not exceed 5,000
deposit account by, and shall be paid  In the absence of these
on order of, the Secretary of Labor and requisites, Labor Arbiter shall
Employment or the Regional Director have exclusive jurisdiction over
directly to the employee or househelper claims arising from EER.
concerned. Any such sum not paid to
the employee or househelper because When Claim exceeds P 5,000
he cannot be located after diligent and - RD to advise the complainant to
reasonable effort to locate him within a amend the complaint if the latter
period of three (3) years, shall be held desires
as a special fund of the Department of
Labor and Employment to be used NATURE OF PROCEEDINGS
exclusively for the amelioration and - Summary
benefit of workers. - Non-litigious
 Regional Office may avail itself of
Any decision or resolution of the all reasonable means to
Regional Director or hearing officer ascertain the facts of the
pursuant to this provision may be controversy speedily and
appealed on the same grounds provided objectively, including ocular
in Article 223 of this Code, within five inspection and examination.
(5) calendar days from receipt of a copy
of said decision or resolution, to the Due Process in Administrative
National Labor Relations Commission Proceedings
which shall resolve the appeal within i. Right to a hearing
ten (10) calendar days from the ii. Consideration by the tribunal of
submission of the last pleading the evidence presented
required or allowed under its rules. iii. Decision to have something to
support itself
The Secretary of Labor and iv. Evidence must be substantial
Employment or his duly authorized v. Decision must be based from
representative may supervise the evidence presented
payment of unpaid wages and other vi. Independence of the Tribunal
monetary claims and benefits, including Body
legal interest, found owing to any vii. Render decisions in a manner
employee or househelper under this that the parties are involved
Code. (As amended by Section 2,
Republic Act No. 6715, March 21, 1989) Due Process; Principle of Estoppel
- Action speaks louder than words
Rule: RD of DOLE/ duly authorized - Law does not allow a person to
hearing officer may: speak against his own act or
- Hear and decide any matter deed
involving the recovery of wages
and other monetary claims and ARTS 128 AND 129 COMPARED
benefits including legal interest. - They are similar as they both
involve labor law administration
MONEY CLAIMS ADJUDICATION and enforcement
UNDER ART 129 128 129
RD is authorized through summary As to nature and subject of
proceedings and after due notice, to proceedings
hear and decide recovery of wages and 1. 128 speaks of 1. 129 refers to
monetary claims inspection of adjudication,
Requisites: establishments through
a. Claim is presented by an and the issuance summary
employee or a person employed of orders to proceedings after
in domestic or household service compel notice and
or househelpers compliance with hearing of
b. Claim arises from employer- labor standards, employee’s claim
employee relations wage orders and for wages and
c. Claimant does not seek other labor laws benefits.
reinstatement and regulations.
2. 128 covers 2. 129 limits the - Arts 128 and 129 are operative
enforcement of proceedings to only in the context of
labor legislation monetary claims employment relationship.
in general which therefore - Regular court, not DOLE or
involve only labor NLRC, has jurisdiction over
standards claim of an independent
laws. contractor to adjust contractual
3. Proceedings 3. 129 are fee.
under Article 128 initiated by
are offshoots of sworn complaints SEnA (Single Entry Approach)
inspections done filed by any - D.O. No. 107-10 (Series of 2010)
by interested party. aims to simplify the filing of
labor officers or labor complaints.
safety engineers - SEnA or single entry approach
As to workers involved system applies to all cases
1. 128 involves 1. 129 applies to under the administrative and
employees still in present or past quasi-judicial function of all
the employees at the DOLE offices and attached
service time the agencies including the NLRC.
complaint is filed,
provided there is The SEnA system, however, does not
no demand for apply to:
reinstatement, (1) notices of strike or lockout which
otherwise the NCMB handles, and
case will fall (2) CBA implementation or personnel
under the labor policy disputes that ought to be
arbiter’s brought to the in-house grievance
jurisdiction machinery.
As to jurisdictional limits
1. No maximum 1. Under Article
monetary amount 129, the amount
for the exercise of of money claim
enforcement per claimant
power under should not
Article 128 exceed
P5,000.00
As to the Officers Designated
1. Person 1. Adjudicatory
exercising the power under
visitorial Article 129 is
enforcement vested upon a
power under regional director
Article 128 is the or any
Secretary of duly authorized
Labor or any of hearing officer of
his duly the Department TITLE III – WORKING CONDITIONS
authorized of Labor and FOR SPECIAL GROUPS OF
representatives Employment. EMPLOYEES
who may or may
not be a regional CHAPTER I – EMPLOYMENT OF
director WOMEN
Regarding Appeal
1. Order issued 1. Article 129 is  RA 10151 repeals the law
under Article 128 to the prohibiting night work for women
is appealable to National Labor workers under Arts 130-131.
the Secretary of Relations Law Protecting Women Workers
Labor and Commission.  Philippine Constitution
Employment  Labor Code PD 442
 UN CEDAW
EMPLOYEES’ CLAIMS ONLY  RA 6725
 RA 6955 Anti Mail Order Bride
  RA 7192 Women in Development
and Nation-Building Act CHILD ABUSE AND CHILD LABOR
 RA 7322
 RA 7877
 RA 8042 EMPLOYMENT OF POOR BUT
DESERVING STUDENTS
ART 130 FACILITIES FOR WOMEN

ART 131 MATERNITY LEAVE

BENEFITS

MATERNITY LEAVE UNDER SSS LAW

BATTERED WOMAN LEAVE

TWO MONTHS LEAVE UNDER THE

MAGNA CARTA OF WOMEN

ART 132 FAMILY PLANNING

SERVICES; INCENTIVES FOR FAMILY
PLANNING

ART 133 DISCRIMINATION

PROHIBITED

BFOQ – BONAFIED OCCUPATIONAL

QUALIFICATION

WOMEN AS EQUAL PARTNER

ART 134 STIPULATION AGAINST

MARRIAGE

NONDISCRIMINATION; POLICY
AGAINST MARRIED STATUS
CHAPTER III – EMPLOYMENT OF
HOUSEHELPERS
ART 135 PROHIBITED ACTS
ART 139 COVERAGE

ART 136 CLASSIFICATION OF ART 140 CONTRACT OF DOMESTIC

CERTAIN WOMEN WORKERS SERVICE

SEXUAL HARRASSMENT
 RA 10361 – Domestic Workers’
PERSONS WHO MAT BE LIABLE FOR Act or Batas Kasambahay
SEXUAL HARRASSMENT

ART 141 MINIMUM AGE

CHAPTER II – EMPLOYMENT OF
MINORS ART 142 MINIMUM CASH WAGE

ART 137 MINIMUM EMPLOYABLE AGE ART 143 ASSIGNMENT TO NON-

HOUSEHOLD WORK
HAZARDOUS WORK
ART 144 OPPORTUNITY OF
EDUCATION

ART 145 TREATMENT OF

HOUSEHELPERS

ART 146 BOARD, LODGING, AND

MEDICAL ATTENDANCE

ART 147 INDEMNITY FOR UNJUST

TERMINATION OF SERVICES

ART 148 SERVICE OF TERMINATION

NOTICE

ART 149 EMPLOYMENT

CERTIFICATION

ART 150 EMPLOYMENT RECORDS

CHAPTER IV – EMPLOYMENT OF
HOMEWORKERS

ART 151 REGULATION OF

INDUSTRIAL HOMEWORKERS

ART 152 REGULATIONS OF

SECRETARY OF LABOR

ART 153 DISTRIBUTION OF CHAPTER V – EMPLOYMENT OF

HOMEWORK NIGHT WORKERS

ART 154 COVERAGE

INDUSTRIAL HOMEWORK

NEW RULE XIV ART 155 HEALTH ASSESSMENT

ART 156 MANDATORY FACILITIES

ART 157 TRANSFER

ART 158 WOMEN NIGHT WORKERS

ART 159 COMPENSATION

ART 160 SOCIAL SERVICES

ART 161 NIGHT WORK SCHEDULES