LABOR STANDARDS Atty.

Sagmit
GENERAL PROVISIONS
ARTICLE 3. Declaration of basic policy. The State shall afford protection to labor,
promote
full
employment,
ensure
equal
work
opportunities regardless of sex, race or creed
and regulate the relations between workers
and employers. The State shall assure the
rights of workers to self-organization,
collective bargaining, security of tenure, and
just and humane conditions of work. (PPERSCSJ)
ARTICLE II Declaration of Principles
and State Policies
Section 18. The State affirms labor as a
primary social economic force. It shall
protect the rights of workers and promote
their welfare.
ARTICLE XIII Social Justice and Human
Rights
Protection to Labor Clause
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 to investments, and to
expansion and growth.
Cardinal
Rights
of
Workers
(OCESWWP)
1. to organize themselves,

2. to conduct collective bargaining or

negotiation with management,
3. to engage in peaceful concerted
activities, including to strike in
accordance with law,
4. to enjoy security of tenure,
5. to work under humane conditions,
6. to receive a living wage,
7. to participate in policy and decision
making processes affecting their rights
and benefits as may be provided by
law.
ARTICLE 4. Construction in favor of
labor. - All doubts in the implementation
and interpretation of the provisions of this
Code, including its implementing rules and
regulations, shall be resolved in favor of
labor.
Management Rights (RPST)
1. Right to ROI (Return on Investment)
2. Rights to Prescribe Rules
3. Right to Select Employees
4. Right to Transfer or Discharge
Employees
PRE-EMPLOYMENT
A. REECRUITMENT AND PLACEMENT OF
WORKERS
1. State Policy
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.
2. Definition
ARTICLE
13.
Definitions.

(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. (CECTUHPRCSPA)
3. Power and Authority of Sec.
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.
Entities
authorized
to
engage
in
recruitment
and
placement
(PoPePaSPCMO)
1. Public employment offices
2. Private recruitment entities
3. Private employment agencies
4. Shipping or manning agents or
representatives
5. POEA

6. Construction contractors if authorized

to operate by DOLE and the
Construction Industry Authority
7. Members of the diplomatic corps
although hirings done by them have to
be processed through the POEA
8. Other persons or entities as may be
authorized by the DOLE Secretary.
RA 8042/RA 10022
Sec. 3 (a) "Overseas Filipino 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 citizen or on board a vessel
navigating the foreign seas other than a
government ship used for miliatry or noncommercial purposes or on an installation
located offshore or on the high seas; to be
used interchangeably with migrant worker.
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:
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).
Jurisdiction of the POEA

Section 6. 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,
including refund of fees collected from
the workers and violation of the
conditions for issuance of license to
recruit workers; (Based on jurisdictional
areas under the POEA Charter or E.O.
247, as amended.)
b. disciplinary action cases and other
special cases, which are administrative
in character, involving employers,
principals, contracting partners and
OFWs processed by the POEA.
Grounds for Disciplinary Actions
1. Commission of a felony punishable by
Philippine laws or laws of host country;
2. Drug addiction or possession or
trafficking of prohibited drugs;
3. Desertion or abandonment;
4. Gambling;
5. Initiating or joining a strike, where
prohibited;
6. Creating trouble at the work site;
7. Embezzlement of company funds or
other properties;
8. Theft or robbery;
9. Prostitution;
10.Vandalism;
11.Gunrunning or possession of deadly
weapons;
12.Unjust refusal to depart for a worksite
after all documents have been
prepared;
13.Violations of the law and sacred
practices of the host country and
unjustified breach of the employment
contract.
Jurisdiction of the NLRC
SEC. 10. Money Claims. - Notwithstanding
any provision of law to the contrary, the
Labor Arbiters of the 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

damage. Consistent with this mandate, the
NLRC shall endeavor to update and keep
abreast with the developments in the global
services industry.
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 de 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.
Any compromise/amicable settlement
or voluntary agreement on money claims
inclusive of damages under this section
shall be paid within thirty (30) days from
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, or any unauthorized deductions
from the migrant worker's salary, the
worker shall be entitled to the full
reimbursement of his placement fee and
the deductions made 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.
(Money claims BEFORE July 15, 1995 is
within the jurisdiction of the POEA. AFTER
July 1995 jurisdiction is within the NLRC)
Gen. Rule: ARTICLE 18. Ban on directhiring. No (foreign principal or) employer
may hire a Filipino worker for overseas
employment except through the boards and
entities authorized by the Secretary of Labor.
Exceptions:
1. diplomatic corps,
2. international organizations, and
3. such other employers as may be
allowed by the Secretary of Labor

4. name hires
Name Hires are those individual workers
who are able to secure contracts for
overseas employment on their own efforts
and representations without the assistance
or participation of any agency.
Regulation
of
Recruitment
and
Placement RA 8042/10022
1. Entities Prohibited to Recruit
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.
POEA Rules IRR Book II Rule 1
Section 2.
Disqualification. The
following are not qualified to engage in the
business of recruitment and placement of
Filipino workers overseas:
a. Travel agencies and sales agencies of
airline companies;
b. Officers or members of the Board of
any corporation or members in a
partnership engaged in the business of
a travel agency;
c. Corporations and partnerships, when
any of its officers, members of the
board or partners, is also an officer,
member of the board or partner of a
corporation or partnership engaged in
the business of a travel agency;
d. Persons, partnerships or corporations
which have derogatory records, such
as but not limited to the following:
1. Those certified to have derogatory
record or information by the
National Bureau of Investigation or
by the Anti-Illegal Recruitment
Branch of the POEA;
2. Those against whom probable
cause or prima facie finding of guilt
for illegal recruitment or other
related cases exists;
3. Those
convicted
for
illegal
recruitment or other related cases
and/or crimes involving moral
turpitude; and
4. Those agencies whose licenses
have been previously revoked or
cancelled by the Administration for
violation of RA 8042, PD 442 as
amended and their implementing

rules and regulations as well as

these rules and regulations.
All applicants for issuance/renewal
of license shall be required to
submit
clearances
from
the
National Bureau of Investigation
and
Anti-Illegal
Recruitment
Branch, POEA, including clearances
for their respective officers and
employees.
e. Any official or employee of the DOLE,
POEA,
OWWA,
DFA
and
other
government agencies directly involved
in the implementation of R.A. 8042,
otherwise known as Migrant Workers
and Overseas Filipino Act of 1995
and/or any of his/her relatives within
the fourth civil degree of consanguinity
or affinity; and
f. Persons or partners, officers and
Directors
of
corporations
whose
licenses
have
been
previously
cancelled or revoked for violation of
recruitment laws. (Section 2, Rule I,
Part II, Ibid.).
2. Citizenship Requirements
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.
3. Capitalization
POEA Rules IRR Book II Rule 1
Section 1 (b) A minimum capitalization
of P2,000,000.00 in case of a single
proprietorship or partnership and a
minimum
paid-up
capital
of
P2,000,000.00 in case of a corporation;
Provided that those with existing licenses
shall, within four years from effectivity
hereof, increase their capitalization or paid
up capital, as the case may be, to
P2,000,000.00 at the rate of P250,000.00
every year.
4. Non-transferability of License
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.
Note: Change of business name must be with
prior approval of DOLE otherwise it shall be
VOID.
5. Bonds
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.
6. Fees Paid by Workers
POEA RULES AND REGULATIONS
February 4, 2002
SECTION 2. Fees and Costs Chargeable to
Principals. Unless otherwise provided, the
principal shall be responsible for the
payment of the following:
a. visa fee;
b. airfare;
c. POEA processing fee; and
d. OWWA membership fee (Sec. 2, Rule V,
Part II).
SECTION 3. Fees/Costs Chargeable to the
Workers. Except where the prevailing
system in the country where the worker is to
be deployed, either by law, policy or
practice, do not allow the charging or
collection of placement and recruitment fee,
a land-based agency may charge and collect
from its hired workers a placement fee in an
amount equivalent to one month salary,
exclusive
of
documentation
costs.
Documentation costs to be paid by the
worker shall include, but not limited to,
expenses for the following:
a. Passport
b. NBI/Police/Barangay Clearance
c. Authentication
d. Birth Certificate
e. Medicare
f. Trade Test, if necessary
g. Inoculation, when required by host
country
h. Medical Examination fees

In the event that the recruitment agency

agrees to perform documentation services,
the worker shall pay only the actual cost of
the document which shall be covered by
official receipts.
The above-mentioned placement and
documentation costs are the only authorized
payments that may be collected from a hired
worker. No other charges in whatever form,
manner or purpose, shall be imposed on and
be paid by the worker without prior approval
of the POEA.
Such fees shall be collected from a hired
worker
only
after
he
has
obtained
employment through the facilities of the
recruitment agency. (Section 3, Rule V, Part
II, Ibid.).
7. PROHIBITED PRACTICES; Liability
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 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 its implementing rules and
regulations.
RA 8042 as amended by RA 10022
SEC. 6. . . . 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 or acknowledge 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, or for the purpose of
documenting hired workers with the
POEA, which include the act of
reprocessing workers through a job
order that pertains to nonexistent work,
work different from the actual overseas
work, or work with a different employer
whether registered or not with the
POEA;

d. To include or attempt to induce a worker

already
employed
to
quit
his
employment in 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 or who
has formed, joined or supported, or has
contacted or is supported by any union
or workers' organization;
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 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;
h. 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;
i. 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;
k. To withhold or deny travel documents
from applicant workers before departure
for monetary or financial considerations,
or for any other reasons, other than
those authorized under the Labor Code
and
its
implementing
rules
and
regulations;
l. Failure to actually deploy a contracted
worker
without
valid
reason
as
determined by the Department of Labor
and Employment;
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; and
n. To allow a non-Filipino citizen to head or
manage a licensed recruitment/manning
agency.
In addition to the acts enumerated above,
it shall also be unlawful for any person or
entity to commit the following prohibited
acts:
1. Grant a loan to an overseas Filipino
worker with interest exceeding eight
percent (8%) per annum, which will be
used for payment of legal and
allowable placement fees and make
the migrant worker issue, either
personally or through a guarantor or
accommodation
party,
postdated
checks in relation to the said loan;
2. Impose a compulsory and exclusive
arrangement whereby an overseas
Filipino worker is required to avail of a
loan only from specifically designated
institutions, entities or persons;
3. Refuse to condone or renegotiate a
loan incurred by an overseas Filipino
worker after the latter's employment
contract
has
been
prematurely
terminated through no fault of his or
her own;
4. Impose a compulsory and exclusive
arrangement whereby an overseas
Filipino worker is required to undergo
health
examinations
only
from
specifically designated medical clinics,
institutions, entities or persons, except
in the case of a seafarer whose
medical
examination
cost
is
shouldered by the principal/shipowner;
5. Impose a compulsory and exclusive
arrangement whereby an overseas
Filipino worker is required to undergo
training,
seminar,
instruction
or
schooling of any kind only from
specifically designated institutions,
entities or persons,
except fpr
recommendatory trainings mandated
by principals/shipowners where the
latter shoulder the cost of such
trainings;
6. For a suspended recruitment/manning
agency to engage in any kind of
recruitment activity including the

processing
of
pending
workers'
applications; and
7. For a recruitment/manning agency or a
foreign principal/employer to pass on
the overseas Filipino worker or deduct
from his or her salary the payment of
the cost of insurance fees, premium or
other insurance related charges, as
provided
under
the
compulsory
worker's insurance coverage.
SEC. 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 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 ith
appropriate 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. However, in cases where the
principal or recruitment agency cannot be
identified, all costs attendant to repatriation
shall be borne by the OWWA.
8. Suspension and/or cancellation of
license or authority
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.

Note: The power to suspend or revoke the

license or authority to recruit employees for
overseas employment is CONCURRENTLY
vested with the POEA and the DOLE
Secretary.
Verified Undertaking by an Applicant for
a
License
to
Operate
a
Private
Employment Agency or Manning Agency
POEA Rules Part II, Rule II Sec. f
1. Shall
select
only
medically
and
technically qualified recruits;
2. Shall
assume
full
and
complete
responsibility for all claims and liabilities
which may arise in connection with the
use of the license;
3. Shall assume joint and solidary liability
with the employer for all claims and
liabilities which may arise in connection
with the implementation of the contract,
including but not limited to payment of
wages,
death
and
disability
compensation and repatriations;
4. Shall guarantee compliance with the
existing labor and social legislations of
the Philippines and of the country of
employment of the recruited workers;
5. Shall
assume
full
and
complete
responsibility for all acts of its officials,
employees and representatives done in
connection
with
recruitment
and
placement;
6. Shall negotiate for the best terms and
conditions of employment;
7. Shall disclose the full terms and
conditions of employment to the
applicant workers;
8. Shall deploy at least 100 workers to its
new markets within one (1) year from
the issuance of its license;
9. Shall provide orientation on recruitment
procedures, terms and conditions and
other relevant information to its workers
and provide facilities therefor; and
10.Shall repatriate the deployed workers
and his personal belongings when the
need
arises.
For the purpose of compliance with item
(1), the agency may require the worker
to undergo trade testing and medical
examination only after the worker has
been pre-qualified for employment.
9. Illegal Recruitment LOCAL

ARTICLE 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 nonlicensee 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:
(c)
was
DECLARED
UNCONSTITUTIONAL in the case of Salazar
vs. Achacoso
Local Forms of Illegal Recruitment:
(Summary)
1. Committed by a non-licensee but still
recruits and places workers.
2. Committed
by
a
licensee,
but
committed any of the prohibited acts
mentioned in Art. 34 of the Labor Code
and RA 8042/10022

3. Committed by a non-licensee AND

committed any of the prohibited acts.
ARTICLE 39. Penalties.
a. The penalty of life imprisonment and a
fine of 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;
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.
Secretary of Labor and Employment or his
duly authorized representative, may cause
the lawful arrest of illegal recruiters either:
1. Judicial warrant issued by the RTC,
MTC or MCTC judge

2. Without judicial warrant Sec. 5, Rule

113 Criminal Procedure
10. Illegal Recruitment OVERSEAS
RA 8042 as amended by RA 10022
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 nonholder 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:
(See a-n in prohibited practices)
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
ownership, control, management or direction
of their business who are responsible for the
commission of the offense and the
responsible employees/agents thereof shall
be liable.
In the filing of cases for illegal
recruitment or any of the prohibited acts
under this section, the Secretary of Labor
and Employment, the POEA Administrator or
their duly authorized representatives, or any
aggrieved
person
may
initiate
the
corresponding criminal action with the
appropriate office. For this purpose, the
affidavits and testimonies of operatives or
personnel from the Department of Labor and
Employment,
POEA
and
other
law
enforcement agencies who witnessed the

acts constituting the offense shall be

sufficient to prosecute the accused.
In the prosecution of offenses punishable
under this section, the public prosecutors of
the Department of Justice shall collaborate
with the anti-illegal recruitment branch of the
POEA and, in certain cases, allow the POEA
lawyers to take the lead in the prosecution.
The POEA lawyers who act as prosecutors in
such cases shall be entitled to receive
additional allowances as may be determined
by the POEA Administrator.
The filing of an offense punishable under
this Act shall be without prejudice to the
filing of cases punishable under other
existing laws, rules or regulations.
SEC. 7. Penalties. a. Any person found guilty of illegal
recruitment shall suffer the penalty of
imprisonment of not less than twelve (12)
years and one (1) day but not more than
twenty (20) years and a fine of not less
than P1,000,000.00 nor more than
(P2,000,000.00).
b. The penalty of life imprisonment and a
fine of not less than P2,000,000.00 nor
more than P5,000,000.00) shall be
imposed if illegal recruitment constitutes
economic sabotage as defined therein.
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 nonlicensee or non-holder of authority.
c. Any person found guilty of any of the
prohibited acts 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
P500,000.00
nor
more
than
P1,000,000.00.
If the offender is an alien, he or she
shall, in addition to the penalties herein
prescribed, be deported without further
proceedings.
In every case, conviction shall cause
and carry the automatic revocation of the
license
or
registration
of
the
recruitment/manning agency, lending
institutions, training school or medical
clinic.
SEC. 9. Venue. - A criminal action arising
from illegal recruitment as defined herein
shall be filed with the

1. Regional Trial Court of the province or

city where the offense was committed
or
2. 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.
Prescriptive
Periods
for
Illegal
Recruitment
Local 3 years, basis: Art. 290 of the Labor
Code
Overseas 5 years, basis RA 8042 Sec. 12
Economic Sabotage 20 years RA 8042
Sec. 12
3 Illegal Practices
1. No license or authority
2. With license or authority but made
prohibited practices under Art. 34
(local)
3. With license or authority but made
prohibited practices under RA 8042
(overseas)
Elements
of
Large
Scale
Illegal
Recruitment: (Summary)
1. Accused undertakes any recruitment
activity defines in Art. 13 par. (b) or
any of the prohibited practices under
Art. 34 of the Labor Code.
2. He does not have a license or
authority.
3. Commits the same against 3 or more
persons.
C. Employment of Non-Resident Aliens
ARTICLE 40. Employment permit of nonresident 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 nonavailability of a person in the Philippines who
is competent, able and willing (CAW) 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.
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.
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.
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;
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.
Note: The employer must show the nonavailability of a person in the Philippines who
is competent, able and willing (CAW) at
the time of application to perform the
services for which the alien is desired.
DOLE Department Order No. 75-06,
Series of 2006.
Gen. Rule: All foreign nationals who intend
to engage in gainful employment in the
Philippines shall apply for Alien Employment
Permit (AEP)
Foreign
nationals
exempted
from
securing AEP
1. All members of the diplomatic service
and
foreign
government
officials
accredited by and with reciprocity
arrangement
with
the
Philippine
government;
2. Officers and staff of international
organizations of which the Philippine
government is a member, and their
legitimate spouses desiring to work in
the Philippines;
3. Foreign nationals elected as members of
the Governing Board who do not occupy
any other position, but have only voting
rights in the corporation;
4. All foreign nationals granted exemption
by law;
5. Owners and representatives of foreign
principals
whose
companies
are
accredited by the Philippines for a
limited period and solely for the purpose
of interviewing Filipino applicants for
employment abroad;
6. Foreign nationals who come to the
Philippines to teach, present and/or
conduct research studies in universities
and colleges as visiting, exchange or
adjunct
professors
under
formal
agreements between the universities or
colleges in the Philippines and foreign
universities or colleges; or between the
Philippine government and foreign
government;
provided
that
the
exemption is on reciprocal basis; and
7. Resident foreign nationals.
HUMAN RESOURCES DEVELOPMENT
A. RA 7796, Technical Education and
Skills Development Authority

1. What is TESDA?
SEC. 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.
2. Composition
SEC. 7. Composition of the TESDA Board. The TESDA Board shall be composed of the
following:
The Secretary of Labor and
Employment
Secretary of Education, Culture
and Sports
Secretary of Trade and Industry

Chairperso
n
CoChairperso
n
CoChairperso
n
Member
Member

Secretary of Agriculture
Secretary of Interior and Local
Government
Director-General of the TESDA Member
Secretariat

In addition, the President of the

Philippines shall appoint the following
members
from
the
private
sector:
(TRIPARTITE BODY)
a. two (2) representatives, from the
employer/industry
organization,
one of whom shall be a woman;
b. three (3) representatives, from the
labor sector, one of whom shall be a
woman; and
c. two (2) representatives
of the
national associations of private
technical-vocational
education
and training institutions, one of
whom shall be a women.
As soon as all the members of the private
sector are appointed, they shall so organized

themselves that the term of office of onethird (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 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.
3. Committees
SEC. 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 compositions 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.
4. Skills Development Centers
SEC. 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.
5. Incentive Schemes
SEC. 27. Incentives Schemes. - The
Authority shall develop and administer
appropriate
incentive
schemes to encourage government and
private industries and institutions to provide
high-quality technical education and skills
development opportunities.
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.
There shall be a review of the said
scheme two years after its implementation.
B. Training and Employment of Special
Workers
1. Apprentices
a. Definition of Terms
SEC. 4. Definition of Terms. - As used in this
Act:
Skill shall mean the acquired and
practiced ability to carry out a task or job;
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;
Technical Education shall refer to the
education process designed at postsecondary 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;

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;
Middle-Level Manpower refers to
those:
1. who have acquired practical skills and
knowledge through formal or nonformal
education
and
training
equivalent to at least a secondary
education but preferably at postsecondary
education
with
a
corresponding degree of diploma; or
2. skilled workers who have become
highly competent in their trade or craft
as attested by industry;
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;
Trainers shall mean persons who direct
the practice of skills towards immediate
improvement in some task;
Trainors/trainers shall mean persons
who provide training to trainers aimed at
developing the latter's capacities for
imparting attitudes, knowledge, skills and
behavior patters required for specific jobs,
tasks, occupations or group of related
occupations.
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;
Apprenticeship
training
within
employment with compulsory related
theoretical instruction involving a
contract between an apprentice and
an
employer
on
an
approved
apprenticeable occupation;
Apprentice is a person undergoing
training
for
an
approved
apprenticeable occupation during an
apprenticeship agreement;

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;
Apprenticeable Occupation is an
occupation officially endorsed by a
tripartite body and approved for
apprenticeable by the Authority;
Learners refers to persons hired as
trainees in semi-skilled and other
industrial occupations which are nonapprenticeable.
Learnership
programs must be approved by the
Authority;

b. Qualifications
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: Apprenticeship period should not
exceed 6 months. (Art. 61)
The wage of the apprentice shall not be
below75% of the minimum wage required by
law. (Art. 61)
c. Apprenticeable Occupation
Sec. 4 (m) Apprenticeable Occupation is
an occupation officially endorsed by a
tripartite
body
and
approved
for
apprenticeable by the Authority.
Note: tripartite (3) body is composed of the
private sector from: (Sec. 7 par. (2) TESDA
Law)
1. Employer/industry organization
2. Labor sector
3. National
associations
of
private
technical vocational education and
training institutions.
d. Apprenticeship Agreement
TESDA
Sec.
4
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.
ARTICLE
60.
Employment
of
apprentices. - Only employers in the
highly technical industries may employ
apprentices and only in apprenticeable
occupations approved by the Secretary of
Labor and Employment. (As amended by
Section 1, Executive Order No. 111,
December 24, 1986).
ARTICLE 61. Contents of apprenticeship
agreements. 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. (As
amended by Sec. 1, Exec. Order No. 111,
Dec. 24, 1986).
ARTICLE 62. Signing of apprenticeship
agreement.
-Every
apprenticeship
agreement shall be signed by
1. the employer or his agent, or
2. 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
1. his parent or guardian, if the latter is
not available,
2. 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
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.
ARTICLE 67. Exhaustion of administrative
remedies. No person shall institute any
action
for
the
enforcementof
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;
(EXCEPTIONS)
b. When
1)
national
security
or
particular requirements of 2) 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. 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.
Note:
It is deduction from the TAXABLE
INCOME
It is of the VALUE of the training
EXPENSES
It is (the program) RECOGNIZED by
the DOLE
The deduction shall not exceed 10% of
the direct labor wage
The employer shall pay his apprentice
the
MINIMUM
WAGE
and
NOT
discounted 75% maximum allowed by
law.
e.
Apprenticeship
without
Compensation
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.
IRR Book III Rule X
SECTION 14. Working scholars. There is
no employer-employee relationship between
students on one hand, and schools, colleges
or universities on the other, where there is

written agreement between them under

which the former agree to work for the latter
in exchange for the privilege to study free of
charge, provided the students are given real
opportunities, including such facilities as
may be reasonable and necessary to finish
their chosen courses under such agreement.
2. Learners
ARTICLE 73. Learners defined. Learners
are persons hired as trainees in semiskilled 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.
TESDA Sec. 4 Learners refers to persons
hired as trainees in semi-skilled and other
industrial occupations which are nonapprenticeable. 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.
Learnership vs. Apprenticeship:
Learnership
Apprenticeship
training in semi- training in highlyskilled
job;
skilled
job;
job
industrial
occupafound in highlytions that require
technical industry;
training for less
training
period
than 3 months
exceeds 3 months
job
is
non- minimum period is
apprenticeable
6 months
because
its no commitment to
practical skills can
hire an apprentice
be learned in 3 (not
even
after
6) months
completion
of
commitment to hire
period
a learner after the prior
DOLE
period
approval required
no need for prior
for
hiring
approval from DOLE
apprentices
in terms of hiring
BOTH: Training periods for jobs requiring
skills that can be acquired through actual
work
experience;
both
learner
and
apprentice may be paid wages twenty-five
(25%) percent lower than the applicable
legal minimum wage.
Learner is not an apprentice,
apprentice is considered a learner.

but

an

3. Handicapped Workers
ARTICLE 78. Definition. Handicapped
workers are those whose earning capacity is
impaired by age or physical or mental
deficiency or injury.
ARTICLE
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.
ARTICLE 80. Employment agreement. Any
employer who employs handicapped workers
shall enter into an employment agreement
with them, which agreement shall include:
a. The names and addresses of the
handicapped workers to be employed;
b. The rate to be paid the handicapped
workers which shall not be less than seventy
five (75%) percent of the applicable legal
minimum wage;
c. The duration of employment period; and
d. 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.
ARTICLE 81. Eligibility for apprenticeship.
Subject to the appropriate provisions of this
Code, handicapped workers may be hired as
apprentices or learners if their handicap is
not such as to effectively impede the
performance of job operations in the
particular occupations for which they are
hired.
RA 7277 Magna Carta for Disabled
Persons
Sec. 4. Definition of Terms. For purposes
of this Act, these terms are defined as
follows:
(a) Disabled persons are those suffering
from restriction or 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 or 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;
d) Handicap refers to a disadvantage for a
given
individual,
resulting
from
an
impairment or a disability, that limits or
prevents the function or activity, that is
considered normal given the age and sex of
the individual;
(h) Reasonable Accommodation include
1) improvement of existing facilities used by

employees in order to render these readily

accessible to and usable by disabled
persons; and 2) modification of work
schedules, reassignment to a vacant
position, acquisition or modification of
equipment
or
devices,
appropriate
adjustments
or
modifications
of
examinations, training materials or company
policies, rules and regulations, the provision
of auxiliary aids and services, and other
similar
accommodations
for
disabled
persons;
(i) Sheltered Employment refers to the
provision of productive work for disabled
persons through workshops providing special
facilities, income-producing projects or
homework schemes with a view to giving
them the opportunity to earn a living thus
enabling them to acquire a working capacity
required in open industry;
(l) Qualified Individual with a Disability
shall mean an individual with a disability
who,
with
or
without
reasonable
accommodations, can perform the essential
functions of the employment position that
such individual holds or desires. However,
consideration shall be given to the
employer's judgment as to what functions of
a job are essential, and if an employer has
prepared a written description before
advertising or interviewing applicants for the
job, this description shall be considered
evidence of the essential functions of the
job;
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
inclinations to ensure a good working
atmosphere and efficient production.
Sec. 7. Apprenticeship. 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
facilities required under BP 344.

of

Sec. 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 job-related for
the position in 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 involved to the
prejudice of the business entity:
Provided, however, That the employer

first sought to provide reasonable

accommodations for disabled persons;
h. Failing to select or administer in the
most effective manner employment
tests which accurately reflect the skills,
aptitude or other factor of the disabled
applicant or employee that such tests
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
organizations.
Sec.
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 may be
informed, when appropriate, if the
disability may 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 in accordance with this Act.
4. Employment of Students
RA 9547 amending RA 7323 Special
Program for Employment of Students
(SPES)
Section 1. Any provision of law to the
contrary notwithstanding, any person or
entity employing at least 10 persons may
employ poor but deserving students 15 years
of age but not more 25 years old, paying
them a salary or wage not lower than the
minimum wage for private employers and
the applicable hiring rate for the national and

local government agencies: Provided, that

student enrolled in the secondary level shall
only be employed during summer and/or
christmas vacations, while those enrolled in
the
tertiary,
vocational
or
technical
education may be employed at any time of
the year: Provided, further, That their period
of employment shall be from
20 to 52
working days only, except that during
Christmas vacation, employment shall be
from 10 to 15 days which may be counted as
part of the students' probationary period
should they apply in the same company or
agency after graduation: Provided, finally,
That students employed in activities related
to their course may earn equivalent
academic credits as may be determined by
the appropriate government agencies.
For purposes of this Act, poor but
deserving students refer to those whose
parents' combined income, together with
their own, if any, does not exceed the annual
regional poverty threshold level for a family
of 6 for the preceding year as may be
determined by the NEDA. Employment
facilitation services for applicants to the
program shall be done by the Public
Employment Service Office (PESO).
Participating employers in coordination
with the PESO, must inform their SPES
employees of their rights, benefits, and
privileges under existing laws, company
policies, and employment contracts.
Section 2. 60% of the said salary or wage
shall be paid by the employers in cash and
40% by the government in the form of a
voucher which shall be applicable in the
payment for the students' tuition fees and
books in any educational institution for
secondary, tertiary, vocational or technical
education: Provided, That local government
units (LGUs) may assume responsibility for
paying in full his salary or wages. The
amount of the education vouchers shall be
paid by the government to the educational
institutions concerned within 30 days from its
presentation to the officer or agency
designated by the Secretary of Finance.
The vouchers shall not be transferable
except when the payees thereof dies or for a
justifiable cause stops in his duties, in which
case it can be transferred to his brothers or
sisters. If there be none, the amount thereof
shall be paid his heirs or to the payee
himself, as the case may be."

Section 3. The DOLE Secretary, the DECS

Secretary, the CHED Chairman, the DBM, the
DSWD Secretary and the DF Secretary shall
issue the corresponding rules and regulations
to carry out the purposes of this act.
The DOLE Secretary shall be the Program
Chairman.
Section 4. Any persons or entity who
refuses to honor education vouchers or
makes any fraudulent or fictitious claim
under this Act, regardless of whether
payment has been made, shall upon
conviction be punished with imprisonment of
not less than 6 months and not more than 1
year and a fine of not less than P10,000.00,
without prejudice to their prosecution and
punishment for any other offense punishable
under the Revised Penal Code or any other
penal statute.
In case of partnerships or corporations,
the managing partner, general manager, or
chief executive officer, as the case may be,
shall be criminally liable.

CONDITIONS OF EMPLOYMENT
A. Working Conditions and Rest Periods
ARTICLE 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,
3. field personnel,
4. members of the family of the employer
who are dependent on him for support,
5. domestic helpers, persons in the personal
service of another, and
6. 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:
1. primary duty consists of the management
of the establishment in which they are
employed or of a department or
subdivision thereof, and

2. to other officers or members of the

managerial staff.
Field personnel shall refer to
1. non-agricultural employees who
2. regularly perform their duties away from
the principal place of business or branch
office of the employer and
3. whose actual hours of work in the field
cannot be determined with reasonable
certainty.
(MEMORIZE Art. 82)

Employees in all establishments and

undertakings whether for profit or not
BUT NOT TO:
1. government employees,
2. managerial employees those whose
primary
duty
consists
of
the
management of the establishment in
which they are employed or of a dept
or subdivision thereof, and to other
officers or members of the managerial
staff
3. field personnel refer to nonagricultural 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 who are
dependent on him for support
5. domestic helpers
6. persons in the personal service of
another
7. workers who are paid by results

1. Employment relationship as condition

precedent
Philippine Fuji Xerox vs. NLRC
Depending on the applicability of the tests of
employment, an ER-EE relationship may exist
regardless of the nature of the activities
involved. The kind of work is not the
definitive test whether the worker is an
employee or not.
Definition of Employer and Employee
Employer is one who employs the services of
others; one for whom the employees work
and who pays their wages and salaries.
Employee is one who is engaged in the
service of another; who performs services for

another; who works for salary or wages. His

work is subject to the control of the employer
not only as to the result but the manner and
means of doing it.
Under Article 97 of the Labor Code:
Employer includes any person acting
directly or indirectly in the interest of an
employer in relation to an employee
Employee includes any individual employed
by an employer.
Under the Social Security Law, R.A. 1161
Employer Any person, natural or juridical,
domestic or foreign, who carries on in the
Philippines any trade, business, industry,
undertaking, or activity of any kind and uses
the services of another person who is under
his orders as regards the employment
Employee Any person who performs
services for an employer in which either or
both mental and physical efforts are used
and who receives compensation for such
services, where there is an employeremployee relationship.
Elements of employment relationship
(4-fold test) (SePaPoCo) (MEMORIZE)
1. Selection and engagement of the
employee
2. Payment of wages
3. Power of dismissal
4. Employers power to control the
employee with respect to the means
and methods by which the work is to be
accomplished
aka
Control
test
(Brotherhood
Labor
Unity
vs.
Zamora)
Sevilla vs. CA Court considered in
addition to the standard of right-of-control,
the existing economic conditions prevailing
between the parties, like the inclusion of the
employee in the payrolls, in determining the
existence of ER-EE relationship.
The fact that one had been designated
branch manager does not make such
person an employee. Employment is
determined by the right-of-control test and
certain economic parameters.

Control test calls merely for the existence

of the right to control the manner of doing
the work, not the actual exercise of the
right.

Two-Tiered Approach; the Economic

Dependence Test
Francisco vs. NLRC The two-tiered test
involve:
1. The putative employers power to
control the employee with respect to
the means and methods by which the
work is to be accomplished; and
2. The underlying economic realities of
the activity or relationship.
The determination of the relationship
between employer and employee depends
upon the circumstances of the whole
economic activity, such as:
1. the extent to which the services
performed are an integral part of the
employers business;
2. the extent of the workers investment in
equipment and facilities;
3. the nature and degree of control
exercised by the employer;
4. the workers opportunity for profit and
loss;
5. the amount of initiative, skill, judgment
or foresight required for the success of
the claimed independent enterprise;
6. the permanency and duration of the
relationship between the worker and the
employer; and
7. the degree of dependency of the worker
upon the employer for his continued
employment in that line of business.
The proper standard of economic
dependence is whether the worker is
dependent on the alleged employer for his
continued employment in that line of
business.
Evidence to Establish ER-EE
Domasig vs. NLRC In administrative and
quasi-judicial
proceedings,
substantial
evidence is sufficient as basis for judgment
of existence of ER-EE relationship. No
particular form of evidence is required. Any
competent and relevant evidence to prove it
may be admitted.
Company issued identification card; cash
vouchers covering employees salaries
(Domasig vs. NLRC)
registration with the SSS(Flores vs.
Nuestra)
Taxes withheld on salaries ; employment
contracts, appointment letters, personnel
list; payrolls; Contribution to Employees

Provident Fund (Equitable

Corp. vs. NLRC and Sadac)
Memorandum
Organization charts
Personnel lists
Testimony of co-employees

Banking

Mode of Compensation, Not a Test of

Employment Status
The presence or absence of ER-EE
relationship is not determined by the
basis of employees compensation.
Commissions or wage or salary maybe
dependent on the hours of work spent,
quality or quantity of work done as well
as skill.
Piece rate, boundary and pakyaw are
merely methods of pay computation and
do not prove whether the payee is an
employee or not.
Existence of Employment Relationship
Determined by Law, Not by Contract
The existence of ER-EE relationship is
determined by law and it cannot be
negated simply by repudiating it in the
management or employment contract.
The SC decided that ER-EE relationship
exists in the following cases:
1. Salaried Insurance Agent as distinquished
from registered agents on commission
basis (Great pacific Life vs. Judico)
2. School Teachers (Feati University vs.
Bautista)
3. Jeepney Drivers, Taxi Driver, Barbers
(Citizens League vs. Abbas; Jardin vs.
NLRC)
4. Piece
Rate
workers
(Makati
Haberdashery vs. NLRC
5. Street Hired cargadors (Caurdanetaan
Piece Workers Union vs. Laguesma)
6. Fisherman serving on various capacities
for 8 -15 years paid on commission basis
(Ruga vs. NLRC)
7. Workers on movie projects (Maraguinot
vs. NLRC)
8. Employees of labor union (Bautista vs.
Inciong)
9. Employees of unregistered association
(Orlando Farm Growers vs. NLRC)
No employment Relationship Job
contracting
or
Independent
Contractorship

An employee is not a contractor; a

contractor is not an employee and does
not enjoy an employees rights.
A contractor is self-employed or an
employer to others.
While ER-EE relationship exists between a
job contractor and the workers that he
hires, no such relationship exists between
those workers and the job contractee, the
contractors client.
Labor-only contracting is prohibited. EREE relationship exists between the
workers and the enterprise to which they
are supplied.

General
Right
of
Employer
Over
Conditions of Employment
San Miguel vs. Ople An employer is
free to regulate, according to his own
discretion and judgment, all aspects of
employment,
including
hiring,
work
assignments, working methods, time, place
and manner of work, tools to be used,
processes to be followed, supervision of
workers, dismissal and recall of workers so
long as the they are exercised in good
faith for the advancement of the
employers interest and not for the
purpose of defeating or circumventing the
rights of the employees under special laws or
under valid agreements.
Independent Contractor; Radio and
Broadcast Talent
Sonza vs. ABS-CBN The control test is the
most important test our courts apply in
distinguishing
an
employee
from
an
independent contractor. The greater the
supervision and control the hirer exercises,
the more likely the worker is deemed an
employee. A radio broadcast specialist who
works under minimal supervision is an
independent contractor.
2. Excluded Employees
1. government employees governed by
CSC
rules
EXCEPT
government
employees of government agencies
and
government
corporations
incorporated under the Corporation
Code
2. managerial employees or staff
including supervisors
3. field personnel

4. the employers family members who

depend on him for support
5. domestic helpers and persons in the
personal service of another
6. workers paid by results as determined
under DOLE regulations
Managerial Employees or Staff
IRR Book III Rule I
SECTION 2. Exemption. 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.
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.

Managerial employees and other officers

or members of the managerial staff are

excluded from the coverage of Articles 82

to 96.
Supervisors, like managers are excluded
from their coverage.
A shift engineer/foreman/boiler head may
be considered a member of the
managerial staff.

Outside or Field Sales Personnel

IRR Book III Rule I
SECTION 2. Exemption. f. Nonagricultural 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.

Excluded also from Articles 82 to 96

coverage
Gen. Rule: field personnel are those
whose performance of their job/service is
not supervised by the employer or his
representative, the workplace being away
from the principal office and whose hours
and days of work cannot be determined
with reasonable certainty; hence, they are
paid specific amount for rendering
specific service or performing specific
work.
If required to be at specific places at
specific times, employees including
drivers cannot be said to be field
personnel despite the fact they are
performing work away from the principal
office of the employee.
The phrase whose actual hours of work
in field cannot be determined with
reasonable certainty in Art. 82 must be
read in conjunction with Rule IV, Book III
of the IRR which provides:
Section 1. Coverage This rule shall apply
to all employees except: x x x
(e) Field personnel and other employees
whose
time
and
performance
is
unsupervised by the employer
In deciding WON the employees actual
working hours in the field can be
determined with reasonable certainty,
query must be made as to WON such
employees time and performance is
constantly supervised by the employer.
If usage of work hours are supervised the
employee is not a field personnel.

Domestic
Helpers
and
Persons
Rendering Personal Service
IRR Book III Rule I
SECTION 2. Exemption. 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.
Cadiz vs. Philippine Sinter Corp. House
personnel hired by a ranking company
official but paid for by the company itself, to
maintain a staff house provided for the
official, are not the latters domestic helper
but regular employees of the company.
Villa vs. Zaragosa A family cook who is
later assigned as a watcher and cleaner of
the employers business establishment
becomes an industrial worker.
Rosales vs. Tan Waiters of a hotel does
not fall under the term domestic servants
and persons in the personal service of
another.
Workers Paid by Result
IRR Book III Rule I
SECTION 2. Exemption. 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.
3. Hours Worked
a. Coverage Art. 82
b. Normal Hours of Work
ARTICLE 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. For purposes of this Article,
health personnel shall include resident
physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory
technicians,
paramedical
technicians,
psychologists, midwives, attendants and all
other hospital or clinic personnel.
8-Hour Labor Law was enacted not only to
safeguard the health and welfare of the
laborer or employee, but in a way to
minimize unemployment by forcing
employers, in cases of more than 8-hour
operation is necessary, to utilize different
shifts of laborers or employees working
only for 8 hours each.
Part-time work or a days work of less
than 8 hours is not prohibited.
Health personnel covered by the 40-hour
work week shall include, but not limited
to,
resident
physicians,
nurses,
nutritionists,
dieticians,
pharmacists,
social workers, laboratory technicians
paramedical technicians, psychologists,
midwives,
and
attendants.
Medical
secretaries are also considered clinic
personnel.
c. Hours Worked
ARTICLE 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.
IRR Book III Rule I (MEMORIZE AND
MASTER)
SECTION 3. Hours worked. The
following
shall
be
considered
as
compensable hours worked:
a. All time during which an employee is
required to be on duty or to be at the
employer's premises or to be at a
prescribed work place; and

b. All time during which an employee is

suffered or permitted to work.
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.
Preliminary Activities
Preliminary and postliminary activities are
deemed performed during working hours,
where such activities are controlled or
required by the employer and are
pursued necessarily for the employers
benefit.
Waiting Time
SECTION 5. Waiting time.
1. Waiting time spent by an employee shall
be considered as working time if
o waiting is an integral part of his
work or

the
employee
is
required
or
engaged by the employer to wait.
2. 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.
In determining whether waiting time
constitutes working time, the controlling
factor is whether waiting time spent in
idleness is so spent predominantly for the
employers benefit or for the employees.
Waiting time spent by an employee shall
be considered as working time if waiting
is considered an integral part of his work
or if the employee is required or engaged
by an employer to wait.
o

Working While Eating

Not
compensable
if
employee
is
completely freed from duties even though
he remains in the workplace.
Employee is not relieved if he is required
to perform his duties whether active or
inactive, while eating.
Working While Sleeping
may be considered working if it is subject
to interruption or takes place under
conditions substantially
less desirable
than would likely to exist at employees
home
On Call
compensable
An employee who is required to remain
on call on the employers premises or so
close thereto that he cannot use the time
effectively for his own purposes is
working while on call. (Pan American
vs. Pan American)
within reach through cellphone or other
contact device is not on call and thus
not compensable
c1. Travel Time
Rule: Time spent traveling to or from the
place of work may or may not be
considered working time. It depends upon
the kind of travel involved.

Factors to Consider WON Travel is to be

Working Time:
1. Whether the employee is bound to
travel in conveyance furnished by the
employer or is free to choose his
conveyance
2. WON during the travel, he is subject to
the employers supervision and control
3. WON the travel takes place under
vexing and dangerous conditions
Kinds of Travel
1. Travel from home to work. going to
or from the workplace
Gen. Rule: not worktime,
Exception: When an employee receives
an emergency call outside of his regular
working hours and is required to travel to
his regular place of business or some
other work site, all of the time spent in
such travel is working time.
2. Travel that is all in the days work.
Time spent by an employee in travel as
part of his principal activity, (e.g. travel
form jobsite to jobsite during the
workday)
Gen. Rule: must be counted as hours
worked (even if beyond the 8-5 working
hours)
Exception: If the employee goes home
instead of returning to his employers
premises, that would be travel to work
and is not work time
3. Travel away from home. Travel that
keeps an employee away from home
overnight
Gen. Rule: Work time when it cuts across
or coincides with the employees regular
working hours.
NOTE: AWAY FROM HOME and not BACK
c2.
Lectures,
meetings,
training
programs
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.

Note: Meal periods may shorter than one

hour but not lesser than 20 minutes (1-19
minutes, it must be compensable)

PRISCO vs. CIR Services rendered outside

of the regular working hours partake the
nature of overtime work.

Gen. Rule: Meal time is not compensable

Exception: where it is predominantly spent
for employers benefit or where it is less than
60 minutes (but in no case shall it be shorter
than 20 minutes)

c3. Semestral break

Semestral breaks may be considered as
hours worked under the IRR of the
Labor Code and that regular professors
and full-time teachers are entitled to
salary and emergency cost-of-living
allowance during semestral break, their
absence from work not being of their
own will.
c4. Work Hours of Seamen
Luzon Stevedoring vs. Luzon Marine
Dept. A laborer need not leave the
premises of the boat in order that his period
of rest shall not be counted, it being enough
that he ceases to work, may rest
completely and leave or may leave at his will
the spot where he actually stays while
working, to go somewhere else, whether
within or outside the premises of said
factory, shop or boat. If these requisites are
complied with, the period of such rest shall
not be counted.
National Shipyards and Steel vs. CIR
The correct criterion in determining WON
sailors are entitled to overtime pay is not,
whether they are on board and cannot leave
ship beyond the regular 8 working hours a
day, but whether they actually rendered
service in excess of said number of hours.
Hours Worked: Evidence and Doubt
When an employer alleges that his employee
works less than normal hours of employment
as provided for in the law, he bears the
burden of proving his allegation with clear
and satisfactory evidence.
d. Meal Periods
ARTICLE 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.

Continuous Shifts the meal time breaks

should be counted as working time for
purposes of overtime compensation.
Meal Time of Less Than 60 Minutes
o The meal period should be not less than
60
minutes,
it
is
time-off
or
noncompensable time.
o IRR Sec. 7, Rule I, Book III allow the meal
time to be less than 60 minutes, under
specified cases and in no case shorter
than 20 minutes.
o To shorten meal time to less than 20
minutes is not allowed otherwise it
becomes only a rest period and is
considered working time.
IRR Book III 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.

Shortened meal break upon employees

request
Employees themselves may request that
their meal period be shortened so that
they can leave work earlier than the
previously established schedule. In such a
situation, the shortened meal period is
not compensable.
The DOLE in allowing such arrangement,
imposes, however, certain conditions,
namely:
1. The employees voluntarily agree in
writing to a shortened meal period of
thirty minutes and are willing to waive
the overtime pay for such shortened
meal period;
2. There
will
be
no
diminution
whatsoever in the salary and other
fringe benefits of the employees
existing before the effectivity of the
shortened meal period;
3. The work of the employees does not
involve strenuous physical exertion
and they are provided with adequate
coffee breaks in the morning and
afternoon;
4. The value of the benefits derived by
the employees from the proposed
work arrangement is equal to or
commensurate with the compensation
due them for the shortened meal
period as well as the overtime pay for
30 minutes as determined by the
employees concerned;
5. The overtime pay of the employees
will become due and demandable if
ever they are permitted or made to
work beyond 4:30 p.m.; and
6. The effectivity of the proposed
working time arrangement shall be of
temporary duration as determined by
the
Secretary
of
Labor
and
Employment.
Changing Lunch Break From Paid to
Unpaid
Sime Darby Pilipinas vs. NLRC
Management is free to regulate, according to
its own discretion and judgment, all aspects
of employment. It retains the prerogative,
whenever exigencies of the service so
require, to change the working hours of its
employees. So long as such prerogative is
exercised in good faith for the advancement
of the employers interest and not for the

purpose of defeating or circumventing the

rights of the employees under special laws or
under valid agreements, this Court will
uphold such exercise.
The new work schedule fully complies
with the daily work period of eight (8) hours
without violating the labor Code. Besides, the
new schedule applies to all employees in the
factory similarly situated, whether they are
union members or not.
e. Night Shift Differential
ARTICLE 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 oclock in the
evening and
six oclock in the morning.
Note: Night shift differential is 10%. Time:
10 pm -6 am
Rationale of Night Shift Differential
Shell Company vs. National Labor Union
The additional compensation of night shift
differential recognizes the universal fact that
regular, normal and ordinary work is that
performed during the day, and that work
done at night is very exceptional and
justified only on grounds of inevitable
necessity. When there is no other alternative
but to perform night work. It is but just that
the worker should earn a greater pay than
for ordinary work to compensate him to
some extent for the inconvenience.
Naric vs. Naric When the tour of duty of a
laborer falls at nighttime [between 10:00 PM
and 6:00 AM], the receipt of overtime pay
will not preclude the right to night differential
pay. The latter is payment for work done
during the night while the other payment for
the excess of the regular eight-hour work.
If overtime work falls within the period
covered by night differential , premiums
for overtime work should first be
integrated into the regular hourly rate of
the employee before computing night
shift pay
Night Shift Differential Not Waivable
Mercury Drug vs. Dayao Additional
compensation for nighttime work is founded
on public policy, hence the same cannot be
waived.

Burden of Proof of Payment

the employer who has custody of
pertinent documents that can prove the
fact of payment has the burden of
proving a claim for night shift differential
pay (National Semiconductor (HK)
Distribution, Ltd. vs. NLRC and
Santos)
The burden of proving that payment of
such benefit has been made rests upon
the party who will suffer if no evidence at
all presented by either party. (Seaborne
Carriers Corporation vs. NLRC)
f. Overtime Work
ARTICLE 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.
Note:
rate of overtime pay for a
regular day 25%
rate of overtime pay for a holiday
30%
Overtime Pay Compensation for work
rendered in excess of 8 hours a day
Overtime pay is computed by multiplying
the overtime hourly rate by the number
of hours worked in excess of 8. (National
Shipyards and Steel Corp. vs. CIR)
Rationale
The additional time to his work has many
effects, he puts in more effort, physical
and/or mental; he is delayed in going
home to his family; he might have no
time for relaxation; he might miss
important pre-arranged engagements
which justify for the extra compensation
of overtime pay. (PNB vs. PEMA)
Naric vs. Naric Workers Union Receipt
of overtime pay does not preclude right to
NSD.
Overtime Rate Based on Regular Wage

The term regular base pay excludes

money received in different concepts
such as Christmas bonus and other fringe
benefits. (Bisig ng Manggagawa vs.
Philippine Refining Co. )
In the computation of overtime pay, the
premium pay for work done on Sundays,
holidays and at night and other fringe
benefits which are occasionally and not
ruglarly, received and not by all
employees, should not be added to the
basic pay. (Caltex vs. CIR)

Premium
Pay;
When
Included
or
Excluded in Computing Overtime Pay
Unless there is an agreement more
favorable to the worker, the overtime rate
for is 30% of the rate for the 1 st 8 hours
on a holiday or rest day. Thus, the holiday
or rest day premium should first be added
to the regular base pay before computing
the overtime pay on such day.
CBA May Stipulate Higher Overtime Pay
Rate
PNB vs. PEMA The basis of computation
of overtime pay beyond that is required by
Art. 87 must be the CBA.
Conversion of Monthly to Daily Rate;
Actual Work Days as Divisor
PALEA vs. PAL The divisor in computing
an employees basic daily rate should be the
actual working days in a year. The number of
offdays are not to be counted precisely
because on such offdays, an employee is
not required to work.
How Work Day is Counted
A day is understood to be the 24-hour
period which commences from the time
the employee regularly starts to work
Work in excess of 8 hours w/n a work day
is considered as overtime regardless of
whether this is performed in a work shift
other than at which employee regularly
works (National Dev. Vs. CIR)
Factual and Legal Basis of Claim
An express instruction from the employer
to the employee to render overtime pay is
not required. It is sufficient that the
employee is permitted to work.
Neither is an express approval by a
superior a prerequisite to make overtime

work compensable. In the case of Manila

Railroad Co. vs. CIR the Court held
that :
If the work performed was necessary,
or that it benefited the company or that
the employee could not abandon his work
at the end of his eight hour work because
there was no substitute ready to take his
place and he performed overtime services
upon the order of his immediate superior,
notwithstanding the fact that there was a
standing circular to the effect that before
overtime work may be performed with
pay, the approval of the corresponding
department head should be secured, such
overtime services are compensable in
spite of the fact that said overtime
services were rendered without the prior
approval of the Department Head.
(Reotan vs. National Rice and Corn
Corp.)
However, there are decisions that during
Sundays and Holidays, written authority is
needed for overtime work (Global Inc.,
vs. Atienza)
Neither is overtime claim justified for
days where no work was required and no
work could be done by employees on
account of shutdown due to electrical
power interruptions, machine repair and
lack of raw materials. (Durabuilt vs.
NLRC)
Sundays
and
holidays
cannot
be
considered
as
workdays
in
the
computation of overtime compensation of
the crew members of a vessel merely on
the allegation that being on board a
vessel on these days was part and parcel
of and inherent in their work. (William
Lines vs. Lopez)

Action to Recover Compensation

Estoppel and laches cannot be invoked
against employees in an action for the
recovery of compensation for past
overtime work.
Overtime pay in arrears retroacts to the
date when services were actually
rendered.
Waiver or Quitclaim
Gen. Rule: NO waiver or quitclaim
of
overtime pay
Exception: waiver is in exchange for certain
benefits

Overtime Pay Integrated in Basic Salary

Agreement that overtime pay will be
integrated in basic salary is not per se
illegal; however, there should have been
express agreement to that effect and that
the mathematical result shows that the
agreed legal wage rate and the overtime
pay, computed separately, are equal to or
higher than the separate amounts legally
due
Compressed Work Week (45 hours in 5
days)
Another exception to the non-waiver of
overtime pay
Under this scheme the number of work
days is reduced but the number of work
hours in a day is increased to more than
8, but no overtime pay maybe claimed.
f1. Undertime vs. Overtime
ARTICLE 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.
NWSA vs. NWSA Consolidated Unions &
Sto. Domingo vs. Phil. Rock Products
Where a worker incurs undertime hours
during his regular daily work said undertime
hours should not be offset against the
overtime hours.The proper method should be
to deduct the undertime hours from the
accrued leave but to pay the employee the
overtime compensation to which he is
entitled. Where the employee has exhausted
his leave credits, his unertime may simply be
deducted from his days wage, but he should
still be paid his overtime compensation for
work in excess of 8 hours a day.
f2. Emergency Overtime Work
ARTICLE 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 (Congress) 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.
Other Instance mentioned in the IRR
Book III Rule I
SECTION 10. Compulsory overtime
work.
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.
f3. Computation
ARTICLE 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.
g. Validity of Compressed Work Week
MERALCO Workers Union vs. MERALCO
Gen. Rule: The right to overtime pay cannot
be waived however if there is a compressed

workweek proposed same shall be valid if the

following concurring conditions are met:
1. the employees voluntarily agree to
work nine (9) hours a day from Monday
to Friday;
2. that there will not be any diminution
whatsoever in the weekly or monthly
take-home pay and fringe benefits of
the employees;
3. the value of the benefits that will
accrue to the employees under the
proposed work schedule is more than,
or at least commensurate with or
equal to, the one-hour overtime pay
that is due them during weekdays
based on the employees quantification
4. the one-hour overtime pay of the
employees will become due and
demandable if ever they are permitted
or made to work on any Saturday during
the effectivity of the new working time
arrangement, since the agreement
between
the
employees
and
management is that there will be no
Saturday work in exchange for a longer
workday during weekdays;
5. the work of the employees does not
involve strenuous physical exertion
and they are provided with adequate
rest periods or coffee breaks in
the morning and afternoon; and
6. the effectivity of the proposed working
time arrangement shall be of temporary
duration as determined by the Minister
of Labor and Employment.
DEPARTMENT ADVISORY No. 2 Series of
2009
Guidelines on the Adoption of Flexible
Work Arrangements (FWAs)
I .Purpose to assist and guide ERs and EEs
in the implementation of various FWAs as
one of the coping mechanisms and remedial
measures in times of economic difficulties
and national emergencies. Adoption of
FWAs
is
considered
as
better
alternative
than
the
outright
termination of the services of the
employees or the total closure of the
establishments. Anchored on voluntary
basis and conditions mutually acceptable to
both the ER and EEs, it is recognized as
beneficial in terms of reduction of
business costs and helps in saving jobs
while maintaining competitiveness and
productivity in industries.

II. Concept The Dept. recognizes the

desirability and practicality of FWAs that may
be considered by ERs after consultation with
the EEs, taking into account the adverse
consequence of the situation on the
performance and financial condition of the
company.
Flexible work arrangements refer to
alternative arrangements or schedules
other than the traditional or standard
work hours, workdays and workweek.
The effectivity and implementation of any
of the FWAs provided herein shall be
temporary in nature.
III. Flexible Work Arrangements
The following are the FWAs which labor and
management may consider:
1. Compressed Workweek wherein the
normal workweek is reduced to less
than 6 days but the total number of
work hours of 48 hours per week shall
remain.
The
normal
workday
is
increased to more than 8 hours but not
to
exceed
12
hours,
without
corresponding overtime premium. The
concept can be adjusted accordingly
depending on the normal workweek of
the company pursuant to the provisions
of Dept. Advisory No. 02, series of 2004,
dated Dec. 2, 2004.
2. Reduction of Workdays wherein the
normal workdays per week are reduced
but should not last for more than 6
months.
3. Rotation of Workers wherein the
employees are rotated or alternately
provided work within the workweek.
4. Forced Leave wherein the employees
are required to go on leave for several
days or weeks utilizing their leave
credits if there are any.
5. Broken-time schedule wherein the
work schedule is not continuous but the
work hours within the day or week
remain.
6. Flexi-holidays schedule wherein the
employees agree to avail the holidays at
some other days provided there is no
diminution of existing benefits as a
result of such arrangement.
Under these FWAs, the ERs and the EEs
are encouraged to explore alternative
schemes under any agreement and company
policy or practice in order to cushion and

negate the effect of the loss of income of the

EEs.
IV. Administration of Flexible Work
Arrangements
The parties to the flexible work
schemes shall be primarily responsible
for its administration. In case of difference
of interpretation, the following guidelines
shall be observed:
1. The difference shall be treated as
grievances under the applicable
grievance mechanism of the company.
2. If there is no grievance mechanism or
if this mechanism is inadequate, the
grievance shall be referred to the Reg.
Office which has jurisdiction over the
workplace for appropriate conciliation.
3. To
facilitate
the
resolution
of
grievances, employers are required to
keep and maintain, as part of their
records,
the
documentary
requirements proving that the flexible
work arrangement was voluntarily
adopted.
V. Notice Requirement
Prior to its implementation, the ER shall
notify the Dept. through the Regional Office
which has jurisdiction over the workplace, of
the adoption of any of the above FWAs. The
notice shall be in the Report Form attached
to this advisory.
The Regional Office shall conduct an
ocular visit to validate whether the adoption
of the FWAs is in accordance with this
issuance.
4. Weekly Rest Periods
a. Coverage
ARTICLE 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.
IRR Book III Rule III
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.
b. Employee Preference
IRR Book III Rule III
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.
Gen. Rule: Employees preference must be
respected by employer.
Exception: If such preference is so serious
as it will prejudice or maybe an obstruction
to the operation of the business, then,
employer may schedule the rest day for at
least 2 days in a month according to the
preference of the employee.
c. Work on a Rest Day
ARTICLE 92. When employer may
require work on a rest day. The
employer may require his employees to work
on any day: (EUAPNO) (MEMORIZE)
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.
IRR Book III Rule III
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 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.
d. Compensation for Rest Day
ARTICLE 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.
Premium Pay; Rest Day
For work done on a rest day the employer
must pay the employee:
1. His regular remuneration or 100%
2. Premium pay which is an additional
sum of at least 30% of the regular
wage.
e. Compensation for Sunday
ARTICLE 93. Compensation for rest day,
Sunday or holiday work. (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.
Sunday work entails premium pay only if
it is the employees rest day.
f. Compensation for Special Day
ARTICLE 93. Compensation for rest day,
Sunday or holiday work. (c) Work
performed on any special holiday 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 employees scheduled rest day, he
shall
be
entitled
to
an
additional
compensation of at least fifty per cent (50%)
of his regular wage.
Special Holidays/Days (NAL) (MEMORIZE)
1. Ninoy Aquino Day August 21
2. Alls Saints Day November 1
3. Last Day of the Year December 31
5. Regular Holidays

E.O. 203 and RA 9177 (NMAGLINEBCR)

(MEMORIZE)
1. New Years Day January 1
2. Maundy Thursday movable date
3. Good Friday movable date
4. Araw ng Kagitingan April 9
5. Labor Day May 1
6. Independence Day June 12
7. National Heroes Day Last Sunday of
August
8. Eidl Fitr movable date
9. Bonifacio Day November 30
10.Christmas Day December 25
11.Rizal Day December 30
a. Coverage
IRR Book III Rule IV
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.
b. Holiday Pay
ARTICLE 94. Right to holiday pay.
a. 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;
b. 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
c. As used in this Article, holiday includes:
New Years 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.

Holiday pay is a one-day pay given to an

employee even if he does not work on a
regular holiday.
If a worker comes to work on a regular
holiday he earns extra pay equivalent to
his regular rate.
The purpose of holiday pay is to prevent
diminution of the monthly income of the
workers on account of work interruptions
declared by the state.
But to receive holiday pay, certain
conditions must be met. One of which is
that the employee should not have been
absent without pay on the working day
preceding the regular holiday.

Holiday of a Part-Timer
If the work is partial, the pay should also
be partial.
The amount of holiday pay of a part-timer
is to be determined on a case-to-case
basis. The basis is any of the following,
whichever yields the highest amount:
1. the regular wage per day;
2. the basic wage on the working day
preceding the regular holiday if the
employee is present or on leave with
pay on the last working day
immediately prior to the regular
holiday;
3. the average of his basic wages for the
last seven working days for employees
who are paid by results; or
4. the basic wage on the particular
holiday, if worked.
IRR Book III Rule IV
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 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.
Formulas
Holidays

to

Compute

Wages

on

For Regular Holidays:

A. If it is an employees regular work day
If unworked 100%
If worked
o 1st 8 hours 200%
o Excess of 8 hours plus 30% of
hourly rate on said day
B. If it is an employees rest day
If unworked 100%
If worked
o 1st 8 hours plus 30 % of 200%
o Excess of 8 hours plus 30% of
hourly rate on said day
For Special Holidays:
A. If unworked
No pay, unless there is a favorable
company policy or CBA granting
payment of wages on special days
if unworked.
B. If worked
1st 8 hours plus 30% of the daily
rate of 100%
Excess of 8 hours plus 30% of
hourly rate on said day
C. Falling on an employees rest day and
if worked 1st 8 hours plus 50% of the daily
rate of 100%
Excess of 8 hours plus 30% of
hourly rate on said day
For those declared as Special Working
Holidays:
For work performed, an employee is
entitled only to his basic rate. No
premium pay is required since work
performed on said days is considered
work on ordinary working days.
c. Overtime Pay on a Holiday
IRR Book III Rule IV
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.
d. Absences
IRR Book III Rule IV
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.

Absences on Regular Holiday

Leave of absence
Entitled
to
holiday
with pay
premium (100%)
Leave of absence
Didnt work on holiday
without pay
no pay
immediately
Worked on holiday with
preceding regular 200% pay
holiday
A day
To
avail
of
holiday
immediately
premium, he must work
preceding regular immediately preceding
holiday is nonthe
non-working
working holiday/
holiday / rest day.
rest day
Note: Two Succeeding Holidays

Must work the day before the holiday

otherwise not entitled to 100%
unworked holiday pay.
If absent the day before the 1 st holiday
but
o Works during the 1st holiday =
200%
o Works during the 1st Holiday and
unworked on the 2nd holiday =
200% for the 1st holiday, 100% for
the 2nd holiday.

e. Holiday during Shutdown

IRR Book III Rule IV
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.
Summary: Holiday during shutdown If
it is temporary only, employee must be
compensated. But, if there is a cessation of
the operation, employee may not be paid
due to business reverses/
f. Monthly-paid Employees
Insular Bank of Asia vs. Inciong Art. 94
of the Labor Code is clear that monthly
paid employees are not excluded from
the benefits of holiday pay. Sec. 2, Rule
IV, Book III of the Implementing Rules and
Policy Instruction No. 9 are null and void
since in the guise of clarifying the Labor
Codes provision on holiday pay, they in
effect amended them by enlarging the scope
of their exclusion.
Chartered Bank vs. Ople The divisor
assumes an important role in determining
WON holiday pay is already included in the
monthly-paid employees salary and in the
computation of his daily rate.

Union of Filipro Employees vs. Vivar

Employer cannot claim reimbursement of
overtime pay because the daily rate is still
the same before and after grant of holiday
pay to its monthly-paid employees
The grant of holiday pay to monthly-paid
employees shall be effective from Oct. 23,
1984, the date of promulgation of the Insular
case.
g. Field Personnel
Union of Filipro Employees vs. Vivar
Under Art. 82 of the Labor Code, filed
personnel are not entitled to holiday
pay.
h. Private School Teachers
IRR Book III Rule IV
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;
Note: The teachers will be paid for
Christmas vacation on Dec. 25 and 30.
However, the case of Jose Rizal College shall
be controlling over the IRR.
i. Piece-rate Workers
IRR Book III Rule IV
SECTION 8. Holiday pay of certain
employees.
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.
j. Seasonal Workers
IRR Book III Rule IV
SECTION 8. Holiday pay of certain
employees.
c. Seasonal workers may not be paid the
required holiday pay during offseason when they are not at work.
k. Holiday on a Sunday

Wellington vs. Trajano the SC ruled that

a legal holiday falling on a Sunday creates
no legal obligation for the employer to
pay extra, aside from the usual holiday pay,
to its monthly paid employees.
l. Double Holiday
Double holiday happens when two
REGULAR holidays fall on the same
date. If this happens, the compensation of
the worker shall be 300% if worked and
200% if unworked.
Example: On April 9, 1993, it was the Araw
ng Kagitingan and at the same time a Good
Friday.
Q: Why 300% if worked?
A: 100% on the Araw ng Kagitingan and
another 100% on the Good Friday plus 100%
regular wage. So all in all, the employee shall
receive 300%.
Q: Why 200% if unworked?
A: 100% on the Araw ng Kagitingan and
another 100% on the Good Friday.
6. Service Incentive Leave
ARTICLE 95. Right to service incentive
leave.
a. 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.
b. This provision shall not apply to those
who are already
enjoying the benefit herein provided,
those enjoying vacation leave with pay
of at least five days and
those employed in establishments
regularly employing less than ten
employees or
in establishments exempted from
granting this benefit by the Secretary
of Labor and Employment after
considering the viability or financial
condition of such establishment.
c. The grant of benefit in excess of that
provided herein shall not be made a
subject of arbitration or any court or
administrative action.
IRR Book III Rule V
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
controlled
corporations;
b. Domestic helpers and persons in the
personal service of another;
c. Managerial employees as defined in
Book Three of this Code;
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 basis, or those who
are paid a fixed amount for performing
work irrespective of the time consumed
in the performance thereof;
e. Those who are already enjoying the
benefit herein provided;
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.
Part-Time Workers
entitled to the full benefit of the yearly 5
days of SIL with pay.
The availment and commutation of the
same can be proportionate to the daily
work rendered and the regular daily
salary, respectively.
Contract Workers
Teachers of private schools on contract
basis are entitled to service incentive

leave. ( Cebu Institute of Technology vs.

Hon. Blas Ople )
Exception; Burden of Proof
It is the employers duty, not of the
employees, to prove that there are less
than ten (10) employees in the company.
If it fails to discharge its task, the
employer must be deemed to be covered
by
the
rule,
notwithstanding
the
employees failure to allege the exact
number of employees of the corporation.
(Murillo, et al. vs. Sun Valley Realty)
Sick Leave and Vacation Leave as
Voluntary Benefits
While the five-day service incentive leave
is mandatory because it is legally
required, vacation and sick leave are
voluntary.
The purpose of vacation leave is to afford
to a laborer a chance to get a much
needed rest to replenish his worn out
energies and acquire a new vitality to
enable him to efficiently perform his
duties and not merely to give him
additional salary or bounty. This privilege
must be demanded in its opportune time
and if an employee allows the years to go
by in silence, he waives it. It becomes a
mere concession or act of grace of the
employer. (Cuajao vs. Chua Lo Tan)
In the administration of the leave
privileges of employees, the employer
may impose certain conditions like for
other voluntary benefits. And in cases of
dispute, the court will resolve the same
by construing the employers written
policy on the matter. (Baltazar vs. San
Miguel Brewery, Inc.)
Commutation of Sick Leave
Sick leave and vacation leave benefits
and their conversion to cash are
voluntary, not statutory, in character.
Entitlement to them must be proved.
IRR Book III Rule V
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.
The basis of the conversion shall be the
salary rate at the date of commutation.
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.
Paternity Leave
R.A. No. 8187
It took effect on July 5, 1996, grants
paternity leave of seven days with
full
pay
to
all
married
male
employees in the private and public
sectors.
It available only for the first four
deliveries of the legitimate spouse
with
whom
the
husband
is
cohabiting, that is, the husband and the
wife must be living together.
Delivery
includes
childbirth,
miscarriage or abortion.
The purpose of paternity leave is to
enable the husband to lend support to his
wife during the period of recovery and/or
in the nursing of the newly born child.
Revised
Implementing
Rules
and
Regulations of R.A. No. 8187 for the
Private Sector
Section 3. Conditions to entitlement of
paternity leave benefits. A married male
employee shall be entitled to paternity
benefits provided that:
a. he is an employee at the time of
delivery of his child;
b. he is cohabiting with his spouse at
the time she gives birth or suffers a
miscarriage;
c. he has applied for paternity leave
in accordance with Section 4
hereof; and
d. his wife has given birth or suffered
a miscarriage.
Section 4. Application of leave. The
married male employee shall apply for
paternity leave with his employer within a
reasonable period of time from the

expected date of delivery by the pregnant

spouse, or within such period as may be
provided by company rules and regulations
or by collective bargaining agreement;
provided that prior application for leave
shall not be required in case of
miscarriage.
Section 5. Availment. Paternity leave
benefits shall be granted to the qualified
employee after the delivery by his wife,
without prejudice to an employer allowing an
employee to avail of the benefit before or
during the delivery; provided, that the
total number of days shall not exceed
seven (7) days for each delivery.
Section 6. Benefits. The employee is
entitled to his full pay, consisting of
basic salary, for the seven (7) days
during which he is allowed not to report
for work; provided, that his pay shall not be
less than the mandated minimum wage.
Section
7.
Non-commutation
of
benefits. In the event that the paternity
leave benefit is not availed of, said leave
shall not be convertible to cash.
Section 8. 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
9.
Crediting
of
existing
benefits. Where a male employee is
already enjoying the paternity leave benefits
by reason of contract, company policy or
collective
bargaining
agreement,
the
following rules shall apply:
a. If the existing paternity leave benefit
is greater than the benefit herein
provided, the greater benefit shall
prevail;
b. If the existing paternity leave is less
than that provided herein, such
existing benefit shall be adjusted to
the extent of the difference.
However, where a contract, company
policy or collective bargaining agreement
provides for an emergency or contingency
leave without specific provisions on paternity

leave, the paternity leave as herein provided

shall apply in full.
Parental (Solo Parent) Leave
R.A. No. 8972 - Solo Parents Welfare
Act of 2000
took effect on November 28, 2000.
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.

The seven-day parental leave shall be

non-cumulative.
A solo parent is entitled to the parental
leave if the following conditions are met:
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 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.
Unutilized
parental
leave
is
not
convertible to cash unless otherwise
agreed. Noncompliance with the law may
make the employer liable for damages.
The law also grants other benefit, flexible
work schedule, and housing benefits.
The law prohibits discrimination against
any solo parent with respect to terms and
conditions of employment on account of
his/her status.

Solo Parent is defined as any individual

who falls under any of the following
categories: (RDSILDAUFA) (MEMORIZE)
1. A woman who gives birth as a Result of
rape or 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:
Provided, That he or 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: Provided, that 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 his/her
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 provided he/she is a duly
licensed as a Foster parent by the
DSWD or duly appointed legal guardian
by the court;
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: Provided,
That
such
abandonment,
disappearance, or absence lasts for at
least one (1) year.
Section 3 of R.A. No. 8972 - Children
refers to those living with and dependent
upon the solo parent for support who are
unmarried, unemployed and below eighteen
(18) years of age, or even eighteen (18) year
and above but are incapable of self-support
because
of
mental
and/or
physical
defected/disability.
VAWC Leave
R.A. 9262 Anti-Violence Against
Women and Their Children Act of 2004

SEC. 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 coemployee who is a victim under this Act shall
likewise be liable for discrimination.
7. Service Charges
ARTICLE 96. Service charges. All service
charges collected by hotels, restaurants and
similar establishments shall be distributed at
the rate of eighty-five percent (85%) for all
covered employees and fifteen percent
(15%) for management. The share of the
employees shall be equally distributed
among them. In case the service charge is
abolished, the share of the covered
employees shall be considered integrated in
their wages.

As used herein, a "managerial

employee" shall mean one who is
vested with powers or 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 shall be considered rankand-file employees. (MEMORIZE)
SECTION 3. Distribution of service
charges. All service charges collected by
covered employers shall be distributed at the
rate of 85% for the employees and 15% for
the management. The 85% shall be
distributed equally among the covered
employees. The 15% shall be for the
disposition by management to answer for
losses and breakages and distribution to
managerial employees at the discretion of
the management in the latter case.
SECTION 4. Frequency of distribution.
The shares referred to herein shall be
distributed and paid to the employees not
less than once every two (2) weeks or twice
a month at intervals not exceeding sixteen
(16) days.

Note:
85% - to employees
15% - to management
If service charge is abolished, the share of
employees is deemed integrated in their
wages.
IRR Book III Rule VI
SECTION 1. Coverage. This rule shall
apply only to establishments collecting
service
charges
such
as
hotels,
restaurants, lodging houses, night clubs,
cocktail lounge, massage clinics, bars,
casinos and gambling houses, and similar
enterprises,
including
those
entities
operating primarily as private subsidiaries of
the Government.
SECTION 2. Employees covered. This
rule shall apply to all employees of covered
employers, regardless of their positions,
designations or employment status, and
irrespective of the method by which their
wages are paid except to managerial
employees.

SECTION 5. Integration of service

charges. In case the service charges is
abolished the share of covered employees
shall be considered integrated in their
wages. The basis of the amount to be
integrated shall be the average monthly
share of each employee for the past twelve
(12) months immediately preceding the
abolition of withdrawal of such charges.
SECTION 6. Relation to agreements.
Nothing in this Rule shall prevent the
employer and his employees 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, agreement and voluntary
employer practice.
Tips
Where a restaurant or similar establishment
does not collect service charges but has a
practice or policy of monitoring and pooling
tips given voluntarily by its customers to its

employees, the pooled tips should be

monitored,
accounted
for
and
distributed in the same manner as the
service charges. (No. VII [C], DOLE
Handbook on Workers Statutory Monetary
Benefits.)