LABOR LAW QUIZ 1 COVERAGE – September 26, 2023

1. What is a learner?

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. (Art. 73, Labor Code)

2. Apprenticeship vs. learnership (mention the qualification reason for hiring, training period) – similarities and
distinction

DISTINCTION

Person Hired
Apprenticeship – the person is hired as trainee in an apprenticeship.
Learnership – the person hired as trainee is a learner

Reasons for hiring

Apprenticeship – law does not provide any reasons for hiring an apprentice
Learnership – law provides following reason: (1) when no experienced workers available; (2) the employment of learners
is necessary to prevent curtailment of employment opportunities; and (3) the employment does not create unfair
competition in terms of labor cost or impair or lower working standards

Qualifications
Apprenticeship – (a) at least fifteen (15) years of age; (b) possess vocational aptitude and capacity for appropriate test; and
(c) possess the ability to comprehend and follow oral and written instructions.
Learnership – the law does not provide such qualifications

Hired/employed with/without available experienced workers

Apprenticeship – May be employed when there are available experienced workers.
Learnership – a learner may be employed only when there are no experience workers, the purpose of which is to preclude
curtailment of job opportunities.

What occupations are involved:

Apprenticeship – Highly Technical Industries which means trade, business, enterprise, industry, or other activity, which is
engaged in the application of advance technology. (Apprenticeable or skilled occupations must be approved by TESDA)
Learnership - Semi-skilled and other industrial occupations which are non-apprenticeable. (Learnable or semi-skilled
occupations must be approved by TESDA).

Training period
Apprenticeship – Not less than 3 months and not more than 6 months
Learnership – Shall not be more than 3 months

Supplemented by theoretical instructions

Apprenticeship – practical training on the job is supplemented with compulsory related theoretical instructions
Learnership – practical training on the job may or may not be supplemented by related theoretical instructions

Obligations to hire
Apprenticeship – Not obliged to hire after the training period
Learnership – Obliged to hire.

Pre-termination of training agreement

Apprenticeship – Upon termination of training agreement, an apprentice does not become a regular employee
Learnership – A learner allowed to work for first two (2) months shall automatically become regular employee if training
agreement is pre-terminated by the employer through no fault of the learner

SIMILARITIES

Approval of training program – agreements are entered into after the approval of the training programs by TESDA is valid
Implementation of apprenticeship/learnership programs – in accordance with the TESDA-approved competency-based
format

Approval of the apprenticeable/learnable occupations – based on approved occupations by TESDA

Number of apprentices/learners to be hired – only up to a maximum of 20% of its total regular workforce

Practical training on the job – both includes practical training on the job
Wage to be paid – in both, entitled to compensation equivalent to 75% of the prevailing minimum wage and other benefits
including overtime pay

Full-month pay -if the company avails of the tax incentive program of the government where training cost are tax
deductible, it iss required to pay full month pay to apprentices. In learnership where learners are employed in piece or
incentive-rate jobs, they are paid in full-month pay for work done during the training period.

Subject to competency assessment – graduates of programs are subject to competency assessment. Competency
certificate are issued on the basis of demonstrated competencies for each trade by the enterprise.
Revocation of Registration Certificates – In both, Registration Certificates of Companies that do not hire apprentices or
learners for two (2) consecutive years shall be revoked.

3. When is a learner hired

Learners may be employed when (a) no experienced workers are available, (b) the employment of learners is necessary to
prevent curtailment of employment opportunities, and the (c) employment does not create unfair competition in terms of
labor costs or impair or lower working standards.

4. When is apprenticeship without compensation; requisites

5. Purpose of learner

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 74, Ibid.)

Curtailment - the action or fact of reducing or restricting something.

6. Content of learnership contract; period

Any employer desiring to employ learners shall enter into a learnership agreement with them, which shall include:

a. The names and addresses of the learners;

b. The duration of the learnership period which shall not exceed 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
learner.

The learnership agreement shall be subject to inspection by the Secretary of Labor, or his duly authorized
representatives.

7. Contents of apprenticeship contract

Apprenticeship agreements, including the wage rates of apprentices, shall conform to the rules issued by the
Secretary 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
percent of the applicable minimum wage, may be entered into only in accordance with apprenticeship programs
duly approved by the Secretary of Labor and Employment. The Department shall develop standard model
programs of apprenticeship.

8. Meaning of:
a. Apprentice – An apprentice is a worker who is covered by a written apprenticeship agreement with an individual
employer or any of the entities recognized under the law. He is a person undergoing training for an approved
apprenticeable occupation. Once he has completed an apprenticeship, he can qualify for work in a highly skilled trade.

b. Apprenticeship program – any practical training on the job supplemented by theoretical instructions.
c. Apprenticeship contract - It is an agreement whereby the employer binds himself to train the apprentice and the
apprentice in turn accepts the terms of the training. The 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.

Apprenticeable occupation – means any trade, form of employment or occupation which requires more than three (3)
months of practical raining on the job supplemented by related theoretical instruction. The apprenticeship period shall not
exceed six (6) months.
d. Period - more than three (3) months of practical raining on the job supplemented by related theoretical instruction.
The apprenticeship period shall not exceed six (6) months.
e. Salary/Wage - Wage of apprentices and learners shall in no case be less than seventy five percent (75%) of the
applicable minimum wage rates.
9. Theory of imputed knowledge - a doctrine in agency stating that the principal is chargeable with and bound by the
knowledge of or notice to his agent received while the agent was acting as such. Notice to the agent is notice to the
principal.

The theory of imputed knowledge ascribes the knowledge of the agent, Sunace, to the principal, employer Xiong, not the
other way around.23 The knowledge of the principal-foreign employer cannot, therefore, be imputed to its agent Sunace.

10. Purpose of requiring alien employment permit - Firstly it is the aspect of nationalism which is the primary
consideration of prohibition. To allow aliens to work locally will deprive other Filipinos of their opportunity to get
employed. Monitoring of resident-aliens’ activities is a must, for their employment in the country may only be a
subterfuge to sow subversion and dissent; thus, affecting national security and public order.

11. Required and exempted for employment permits

All non resident foreign nationals who intend to engage in gainful employment in the Philippines are required to obtain
Alien Employment Permit.

The following are exempt from securing an alien employment permit:

a. All members of the diplomatic services and foreign government officials accredited by and with reciprocity
arrangement with the Philippine government.
b. Officers and staff of international organizations of which the Phil. Gov’t is a member, and their legitimate spouses
desiring to work in the Philippines.
c. Foreign nationals elected as members of the Governing Board who do not occupy any other position, but have
only voting rights in the corporation.
d. All foreign nationals granted exemption by law;
e. Owners and representative of foreign principals, whose companies are accredited by the POEA for limited period
solely for purpose of interviewing applicants
f. Foreign nationals who come to the Philippines to teach, present, and/or conduct research studies in universities
g. Resident foreign nationals
12. Procuring, suspension and renewal of employment permit

Validity

Valid for a period of (1) year unless the employment contract, consultancy services, or other modes of engagement
provides otherwise, which in no case shall exceed five (5) years.

Suspension

Based on the following grounds:

a. The continued stay of the foreign national may result in damage to the interest of the industry or the country;
b. The employment of the foreign national is suspended by the employer or by order of the court.

Petitions for suspension of Alien Employment Permit shall be resolved within thirty (30) days from receipt thereof.

Renewal

Shall be filed on or before its expiration. Expired Alien Employment Permits shall be considered as new application.

In case of corporate officers, whose election or appointment takes place on or before expiration of Alien Employment
Permit, the application shall be filed not later than ten (10) working days after election or appointment and before the
expiration of the Alien Employment Permit

13. Definition
a. Illegal recruitment; types and kinds

The two main types of illegal recruitment are as follows:

Simple illegal recruitment; and

Illegal recruitment as economic sabotage.

Under Simple Illegal Recruitment, illegal recruitment of local workers includes those done by a licensee/holder of
authority wherein the offender has a valid license or authority as required by law to enable one to lawfully engage in the
recruitment and placement of workers as well as wherein the offender undertakes any of the prohibited acts under Article
34 of the Labor Code. Another is done by a non-licensee/non-holder of authority wherein the offender has no valid license
or authority required by law to enable one to lawfully engage in the recruitment and placement of workers.

Illegal recruitment is committed when two essential elements concur:

that the offender has no valid license or authority required by law to enable him to lawfully engage in the recruitment and
placement of workers; and
that the offender undertakes any activity within the meaning of “recruitment and placement” defined under Article 13(b),
or any prohibited practices enumerated under Article 34 of the Labor Code. (Ritualo vs. People of the Philippines, G.R.
NO. 178337, June 25, 2009)

Illegal recruitment, on the other hand, is considered economic sabotage when attended by the following qualifying
circumstances: first, by a syndicate which is carried out by a group of 3 or more persons conspiring and confederating
with one another; and second, in large scale which is committed against three (3) or more persons individually or as a
group. (Art. 38(b), Labor Code; Sec. 6 of R.A. No. 8042 as amended)

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. (People of the Philippines vs. Sison G.R. No. 187160, August 9, 2017)

There is large scale illegal recruitment when the offender undertakes any activity within the meaning of “recruitment and
placement” defined under Art. 13(b), as cited above, or any prohibited practice enumerated in Arts. 34 and 38 of the Labor
Code or R.A No. 8042 as amended by R.A No. 10022, whenever applicable and that the offender commits the same
against 3 or more persons, individually or as a group (IRR of R.A No. 8042 as amended, Rule IV, Sec.2)

Illegal recruitment by syndicate when the offender undertakes any activity within the meaning of “recruitment and
placement” defined under Art. 13(b) or any prohibited practice enumerated in Arts. 34 and 38 of the Labor Code or R.A
No. 8042 as amended by R.A No. 10022, whenever applicable. These acts are committed by at least 3 persons conspiring,
and/or confederating with one another; and the offenders are not licensed or authorized to do so. (IRR of R.A No.8042 as
amended, Rule IV, Sec.2)

b. Recruitment and placement

Recruitment and placement refer to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or
procuring workers. (Article 13, Labor Code) This also includes referrals which is an act of passing along or forwarding of
an applicant for employment after an initial interview of a selected applicant for employment to a selected employer,
placement officer or bureau (Rodolfo vs. People, G.R. No. 146964, August 10, 2006), contract services, promising, or
advertising for employment, locally or abroad, whether for profit or not.

14. Nature of employment of OFWs

15. Recruitment and placement activities
16. Rule when person committed illegal recruitment.
a. Can it preclude the filing of estafa case?
17. License vs. Authority
 A license is issued for private employment agencies.
 An authority is given to private recruitment agencies.
 License” means a document issued by the Department of Labor authorizing a person or entity to operate
a private employment agency. (Section 13(d), Labor Code of the Philippines)

 What is an authority?
 The law says:
 “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. (Section 13(f), Labor
Code of the Philippines)

 Who may suspend and/or cancel a license or authority?
 Jurisprudence says:
 The power to suspend or cancel any license or authority to recruit employees for overseas employment
is vested upon the Secretary of Labor and Employment. (Trans Action Overseas Corporation vs. The
Honorable Secretary of Labor, G.R. No. 109583 September 5, 1997)
 The law says:
  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. (Article 35, Labor Code)

 The Philippine Overseas Employment Administration, in the exercise of adjudicatory power, may
impose the penalty of reprimand, suspension, or cancellation or revocation of license for pre-
employment/recruitment violation cases. (Section 10, Republic Act No. 10022 also known as the
Migrant Workers and Overseas Filipino Act of 1995)

 Note that the Ministry of Labor is now the Department of Labor and Employment. The Overseas
Employment Development Board has been replaced by the Philippine Overseas Employment
Administration. 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. (Article 35,
Labor Code)

 What is the difference between a license and an authority?
 A license is issued for private employment agencies. Private fee-charging employment agencies mean
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. (Section 13(c), Labor Code)
 On the other hand, an authority is given to private recruitment agencies. Private recruitment entities
mean any person or association engaged in the recruitment and placement of workers, locally or
overseas, without charging, directly or indirectly, any fee from the workers and employers. (Section
13(e), Labor Code)

18. Liberal interpretation/construction of labor law

19. Quasi-legislative and quasi-judicial power
a. POEA
b. TESDA