KEYWORDS IN LABOR LAW 1

1.01 Labor Law Defined

The law governing the rights and duties of the employer and
employees

(1) with respect to the terms and conditions of employment

and
(2) with respect to labor disputes arising from collective
bargaining respecting such terms and conditions

Labor Standards

Provide minimum terms and conditions of employment, below

which it cannot be allowed to fall.

Terms and conditions society deem necessary to maintain health,

safety, and decent living of workers.

Law and Worker

Cebu Royal Plant v Deputy Minister of Labor (87)

The SC reaffirmed its concern for the lowly worker who, often at
the mercy of his employer must look up to the law for his
protection. Fittingly, the law regards him with tenderness and
even favor and always with faith and hope in his capacity to help
in shaping the nation’s future.

Pacific Life Assurance (99)

It bears emphasis that the employer is free to regulate all

aspects of employment according to his own discretion and
judgment. This prerogative flowed from the established rule that
labor laws do not authorize substitution of judgment of the
employer in the conduct of his business. Recall of workers
clearly falls within the ambit of management prerogative. The
employer can exercise this prerogative without fear of liability so
long as it is done in good faith for the advancement of his
interest and not for the purpose of defeating or circumventing
the rights of the employees under special laws or valid
agreements. It is valid as it is not performed in a malicious,
harsh, oppressive, vindictive or wanton manner or out of malice
or spite.

Pantranco North Express, Inc. v. NLRC (99)

The State affords the constitutional blanket of rendering

protection to labor, but it must also protect the right of
employers to exercise what are clearly management
prerogatives, so long as the exercise is without abuse of
discretion.

Davao Fruits Corporation v. Associated Labor Union (93)

From 1975 to 1981, petitioner had freely, voluntarily and

continuously included in the computation of its employees'
thirteenth month pay, the payments for sick, vacation and
maternity leaves, premiums for work done on rest days and
special holidays, and pay for regular holidays. The considerable
length of time the questioned items had been included by
petitioner indicates a unilateral and voluntary act on its part,
sufficient in itself to negate any claim of mistake.

A company practice favorable to the employees had indeed been

established and the payments made pursuant thereto, ripened
into benefits enjoyed by them. And any benefit and supplement
being enjoyed by the employees cannot be reduced, diminished,
discontinued or eliminated by the employer, by virtue of Section
10 of the Rules and Regulations Implementing P.D. No. 851, and
Article 100 of the Labor Code of the Philippines, which prohibit
the diminution or elimination by the employer of the employees'
existing benefits (Tiangco v. Leogardo, Jr., 122 SCRA 267,
[1983]).

Phil. Airlines, Inc. v. Santos (93)

It is a fact that the sympathy of the Court is on the side of the
laboring classes, not only because the Constitution imposes such
sympathy, but because of the one-sided relation between labor
and capital. The purpose is to place the workingman on an equal
plane with management — with all its power and influence — in
negotiating for the advancement of his interests and the defense
of his rights. Under the policy of social justice, the law bends
over backward to accommodate the interests of the working class
on the humane justification that those with less privileges in life
should have more privileges in law.

Phil. Const. Article XIII, Sec. 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.

7 Cardinal Rights of Workers

S right to self-organization
C collective bargaining and negotiations
P peaceful concerted activities including
the right to strike in accordance
with law
T security of tenure
H humane conditions of work
L living wage
P participate in policy and decision-
making processes affecting their
rights and benefits as may be
provided by law.

Art. 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.

Article 4

That there should be care and solicitude in the protection and

vindication of the rights of workingmen cannot be gainsaid; but
that care and solicitude can not justify disregard of relevant facts
or eschewal of rationality in the construction of the text of
applicable rules in order to arrive at a disposition in favor of an
employee who is perceived as otherwise deserving of sympathy
and commiseration.

Er-Ee

To determine the existence of an employer-employee relation,

this Court has consistently applied the “four-fold” test which has
the following elements: (1) the power to hire, (2) the payment of
wages, (3) the power to dismiss, and (4) the power to control –
the last being the most important element.

Under the control test, an employer-employee relationship exists

where the person for whom the services are performed reserves
the right to control not only the end to be achieved, but also the
manner and means to be used in reaching that end.

The existence of an employer-employees relation is a question of

law and being such, it cannot be made the subject of agreement.
Corporate Veil

The legal fiction of separate corporate entities cannot be invoked

to further an end subversive of justice.
The principle requiring the piercing of the corporate veil
mandates the courts to see through the protective shroud that
distinguishes one corporation from seemingly separate one.

Labor-only Contractor

There is "labor-only" contracting where the person supplying

workers to an employer does not have substantial capital or
investment in the form of tools, equipment, machineries, work
premises, among others, and the workers recruited and placed
by such person are performing activities which are directly
related to the principal business of such employer. In such cases,
the person or intermediary shall be considered merely as an
agent of the employer who shall be responsible to the workers in
the same manner and extent as if the latter were directly
employed by him.

Job Contracting

Job (independent) contracting is present if the following

conditions are met: (a) the contractor carries on an independent
business and undertakes the contract work on his own account
under his own responsibility according to his own manner and
method, free from the control and direction of his employer or
principal in all matters connected with the performance of the
work except to the result thereof; and (b) the contractor has
substantial capital or investments in the form of tools,
equipment, machineries, work premises and other materials
which are necessary in the conduct of his business.

Desirable – Unnecessary
 Coca-Cola Bottlers Phil., Inc. v. NLRC (99)

We perceive at the outset the disposition of the NLRC that

janitorial services are necessary and desirable to the trade or
business of petitioner Coca-Cola. But this is inconsistent with our
pronouncement in Kimberly Independent Labor Union v. Drilon
where the Court took judicial notice of the practice adopted in
several government and private institutions and industries of
hiring janitorial services on an “independent contractor basis.” In
this respect, although janitorial services may be considered
directly related to the principal business of an employer, as with
every business, we deemed them unnecessary in the conduct of
the employer’s principal business.

Employer – Employee

Phil. Airlines, Inc. v. NLRC (98)

From the foregoing disquisition, it is evident that petitioner

was engaged in permissible job contracting and that the
individual private respondents, for the entire duration of their
employ, were employees not of petitioner but of STELLAR. In
legitimate job contracting, no employer-employee relation exists
between the principal and the job contractor's employees. The
principal is responsible to the job contractor's employees only for
the proper payment of wages. But in labor-only contracting, an
employer-employee relation is created by law between the
principal and the labor-only contractor's employees, such that the
former is responsible to such employees, as if he or she had
directly employed them. Besides, the Court has already taken
judicial notice of the general practice adopted in several
government and private institutions of securing janitorial services
on an independent contractor basis.

As labor-only contracting is prohibited, the law considers the

person or entity engaged in the same a mere agent or
intermediary of the direct employer. But even by the preceding
standards, the associate producers of VIVA cannot be considered
labor-only contractors as they did not supply, recruit nor hire the
workers.

INDEPENDENT CONTRACTING:

　 　 　 　 Under DOLE Department Order No. 10 (1997), contracting

shall be legitimate if the following circumstances concur:

1. The contractor or subcontractor carries on a distinct

and independent business and undertakes to perform the job,
work or service on its own account and under its own
responsibility, according to its own manner and method, and free
from the control and direction of the principal in all matters
connected with the performance of the work except as to the
results thereof;

2. The contractor or subcontractor has substantial

capital or investment; and

3. The agreement between the principal and contractor

or subcontractor assures the contractual employees entitlement
to all labor and occupational safety and health standards, free
exercise of the right to self-organization, security of tenure, and
social and welfare benefits.

LABOR – ONLY CONTRACTING:

1. the person supplying workers to an employer does

not have substantial capital or investment

2. in the form of tools, equipment, machineries, work

premises, among others,
3. the workers recruited and placed by such person are
performing activities which are directly related to the principal
business of such employer.

In legitimate job contracting, no employer-employee relation

exists between the principal and the job contractor's employees.
The principal is responsible to the job contractor's employees
only for the proper payment of wages. But in labor-only
contracting, an employer-employee relation is created by law
between the principal and the labor-only contractor's employees,
such that the former is responsible to such employees, as if he or
she had directly employed them.

Employer Determination

Violeta v. NLRC (97); Romares v. NLRC (98)

Art. 280 was emplaced in our statute books to prevent the

circumvention of the employees’ right to be secure in his tenure
by indiscriminately and completely ruling out all written and oral
agreements inconsistent with the concept of regular employment
defined therein. Where an employee has been engaged to
perform activities which are usually necessary or desirable in the
usual business of the employer, such employee is deemed a
regular employee and is entitled to security of tenure
notwithstanding the contrary provisions of his contract of
employment.

Thus, the nature of one’s employment does not depend on the

will or word of the employer. Nor on the procedure of hiring and
the manner of designating the employee, but on the nature of
the activities to be performed by the employee, considering the
employer’s nature of business and the duration and scope of the
work to be done.

An employment shall be deemed regular where the employee: a)

has been engaged to perform activities which are usually
necessary or desirable in the usual business or trade of the
employer; or b) has rendered at least one year of service,
whether such service is continuous or broken, with respect to the
activity in which he is employed.

That petitioner employees are "pakyao" or piece workers does

not imply that they are not regular employees entitled to
reinstatement. Private respondent Empire Food Products, Inc. is
a food and fruit processing company. In Tabas v. California
Manufacturing Co., Inc., this Honorable Court held that the work
of merchandisers of processed food, who coordinate with grocery
stores and other outlets for the sale of the processed food is
necessary in the day-to-day operation[s] of the company. With
more reason, the work of processed food repackers is necessary
in the day-to-day operation[s] of respondent Empire Food
Products.

Seasonal Employees

Phil. Tobacco etc. v. NLRC (98)

The Court has previously ruled in Manila Hotel Company v.

CIR that seasonal workers who are called to work from time to
time and are temporarily laid off during-off season are not
separated from service in said period, but are merely considered
on leave until re-employed.

EMPLOYEE CLASSIFICATION – LAW STRUCTURE

REGULAR EMPLOYMENT

 Test – written agreement to contrary notwithstanding and

regardless of oral agreement of parties provided by law

 Employee engaged to perform activities which are usually

necessary or desirable to the usual business or trade of
employer

 Other Regular Employees

1. Casual Employment after 1 year of service whether
continuous or broken (conditions – Art. 280)
2. Probationary Employee – allowed to work even after the
completion of the probationary period (Art. 281)
3. Learner – allowed or suffered to work during the first 2
months of learner period, if training is terminated by the
employer before the end of the stipulated period.

 Not synonymous to permanent employment (no such thing

as permanent employment since he can be terminated for
cause)


EXCEPT:

1. PROJECT EMPLOYMENT
 Employment fixed on a specific project or undertaking,
completion or termination of which is DETERMINED AT THE
TIME OF ENGAGEMENT OF EMPLOYEE
 Must have been forewarned of the name of the project and
the duration of the project
 Whether or not th eproject has a direct relation to the
business of the employer, not important, BUT:
a. Employee MUST be informed of the name and duration of
the project
b. Project and the Principal business of employer are two
separate things
c. No attempt to deny Security of Tenure to worker

2. SEASONAL EMPLOYMENT
 Work or services to be performed seasonal in nature,
employment is for the duration of the season
 No continuing need for worker

CASUAL EMPLOYMENT

 When not regular, project, or seasonal

 Requirement and Effect = Regular Employees

1. One (1) year service whether continuous or broken
2. With respect to activity employed
3. Employment shall continue while such activity exists
(Regular in a limited sense)

** Project, Seasonal and Casual Employees – may be doing a

function that is by definition regular but are not regular
because they fall in the exception

PROBATIONARY EMPLOYMENT

 Period – duration – not exceed 6 months from the date the

employee started working, unless covered by an
apprenticeship agreement stipulating a longer period

 Termination of Employment
1. Just causes

2. Fail to qualify as regular employee in accordance with

reasonable standards made known by the employer to the
employee at the time of engagement

 Effect of Work beyond 6 months – deemed Regular

employee by automatic application of the law (even if there
is no appointment [Kimberly Clark v. Drilon]

 Purpose:
1. Observance Period
　　　　　　- For the employer to know whether employee is qualified
　　　　　　- For the employee to demonstrate to the employer his skills

2. Restrictive

 Parties may agree for a longer period if company policy

requires or the nature of work requires
 Direct rationale connection: unduly long – unfair to the
worker
 Nothing prohibits the employer to abbreviate or shorten the
period
 If agreed to extend for the benefit of worker – Ex gratia
 No obligation to pay the unfinished portion.
Art. 12 Employment Policies of the State:

To PROMOTE and maintain a state of full employment through

improved manpower training, allocation and utilization;
To PROTECT every citizen desiring to work locally or overseas
by securing for him the best possible terms and conditions
of employment;
To FACILITATE a free choice of available employment by
persons seeking work in conformity with the national
interest;
To FACILITATE and regulate the movement of workers in
conformity with the national interest;
To REGULATE the employment of aliens, including the
establishment of a registration and/or work permit
system;
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.
To INSURE careful selection of Filipino workers for overseas
employment in order to protect the good name of the
Philippines abroad.

Art. 13(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 free employment
to two or more persons shall be deemed engaged in recruitment
and placement.

Art. 13(a) "Workers": any member of the labor force, whether

employed or unemployed.

People v. Panis (88)

 The number of persons dealt with is not an essential
ingredient of the act of recruitment and placement of workers.
Any of the acts mentioned in the basic rule in Article 13(b) will
constitute recruitment and placement even if only one
prospective worker is involved. The proviso merely lays down a
rule of evidence that where a fee is collected in consideration of a
promise or offer of employment to two or more prospective
workers, the individual or entity dealing with them shall be
deemed to be engaged in the act of recruitment and placement.
The words "shall be deemed" create that presumption.

STRUCTURE OF THE LAW:

1. Main Part – Basic Rule

　　　　ACTS:
　　　 canvassing,
　　　 enlisting,
　　　 contracting,
　　　 transporting,
　　　 utilizing,
　　　 hiring or
　　　 procuring workers,
　　　　
　　　　includes:
　　　　　　　referrals,
　　　　　　　contract services,

　　 Acts accompanied by a promise or advertising for

employment – locally or abroad
　　 Consideration – whether for profit or not

2. Proviso
　　　　actor – person or entity
　　　　act – offers, promises employment

3. Consideration – for a fee

　　　　no. of workers – 2 or more
 　　　　effect – deemed engaged in recruitment or placement

NO. OF WORKERS CONSIDERATION

BASIC RULE 0 none
PROVISO 2 fee

Suspension and/or Cancellation of License or Authority

Art. 35.
Suspension and/or cancellation of License or Authority – The
Secretary 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
Department of Labor, the Overseas Employment Development
Board, and the National Seamen Board, or for violation of the
provisions of this and other applicable laws, General Orders and
Letters of Instructions.

Art. 38
Illegal Recruitment –

(a) Any recruitment activities, including the prohibited practices

enumerated under Article 34 of this Code, to be undertaken by
non-licensees or non-holders of authority shall be deemed illegal
and punishable under Article 39 of this Code. The Secretary 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 or his duly authorized

representative shall have the power to recommend the arrest and
detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a
danger to national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order the search
of the office or premises and seizure of documents,
paraphernalia, properties and other implements used in illegal
recruitment activities and the closure of companies,
establishments and entities found to be engaged in the
recruitment of workers for overseas employment, without having
been licensed or authorized to do so.

Art. 34
Prohibited practices - It shall be unlawful for any individual,
entity, licensee or holder of authority: (CFGI-IEOF-SBW) or (CaFF
IndIE OFf SOW)

a. To CHARGE or accept directly or indirectly any amount greater

than that specified in the schedule of allowable fees prescribed by
the Secretary of Labor and Employment, or to make a worker
pay any amount greater than that actually received by him as a
loan or advance;
b. To FURNISH or publish any false notice or information or
document in relation to recruitment or employment;
c. To GIVE any false notice, testimony, information or document
or commit any act or 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 another unless the
transfer is designed to liberate a worker from oppressive terms
and conditions of employment;
e. To INFLUENCE or attempt to influence any person or entity
not to employ any worker who has not applied for employment
through his agency;
f. To ENGAGE in the recruitment or placement of workers in jobs
harmful to public health or morality or to the dignity of the
Republic of the Philippines;
g. To OBSTRUCT or attempt to obstruct inspection by the
Secretary of Labor and Employment or by his duly authorized
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 and
Employment;
i. To SUBSTITUTE or alter 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 expiration of the same without the approval of the
Department of Labor and Employment.
j. To BECOME 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.

Recruitment for overseas employment is not in itself necessarily

immoral or unlawful. It is the lack of the necessary license or
permit, or the engagement of prohibited activities enumerated in
the Labor Code that render such recruitment activities unlawful
or criminal. Illegal recruitment is qualified into large scale
recruitment when three or more persons are victimized. If such
recruitment is 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, it becomes one committed by a syndicate. Illegal
recruitment committed by a syndicate or in large scale amounts
to an offense involving economic sabotage, punishable by life
imprisonment and a fine of one hundred thousand pesos
(P100,000.00).

Illegal recruitment is committed when two elements concur,

namely: (1) the offender has no valid license or authority
required by law to enable one to lawfully engage in recruitment
and placement of workers; and (2) he undertakes either any
activity within the meaning of “recruitment and placement”
defined under Art. 13 (b), or any of the prohibited practices
enumerated under Art. 34 of the Labor Code.

Illegal recruitment is conducted in a large scale if perpetrated

against three (3) or more persons individually or as a group. This
crime requires proof that the accused: (1) engaged in the
recruitment and placement of workers defined under Article 13 or
in any of the prohibited activities under Article 34 of the Labor
Code; (2) does not have a license or authority to lawfully engage
in the recruitment or and placement of workers; and (3)
committed the infraction against three or more, persons,
individually or as a group.

Non-resident Alien

Almodiel v NLRC (93)

Art. 40 of the Labor Code which requires employment permit

refers to non-resident aliens. The employment permit is required
for entry into the country for employment purposes and is issued
after determination of the non-availability of a person in the
Philippines who is competent, able and willing at the time of
application to perform the services for which the alien is desired.
A resident alien does not fall within the ambit of the provision.

4.02 Apprentice

Defined
Sec. 4 (j) (RA 7796)
“Apprenticeship” training within employment with compulsory
related theoretical instructions involving a contract between an
apprentice and an employer during an established period assured
by an apprenticeable occupation.

Apprenticeable Occupation

Sec. 4 (m) (RA7796)

“Apprenticeable Occupation: is an occupation officially endorsed
by a tripartite body and approved for apprenticeship by the
Authority

Qualification

Sec. 12 (RA 7610, as amended by RA 7658)

Employment of Children – Children below fifteen (15) years of
age shall not be employed except:

1. When a child works directly under the sole responsibility of his

parents or legal guardian and where only members of the
employer’s family are employed: Provided, however, That his
employment neither endangers his life, safety, health and
morals, nor impairs his normal development: Provided, further,
That the parent or legal guardian shall provide the said minor
child with the prescribed primary and/or secondary education; or

2. When a child’s employment or participation in public and

entertainment or information through cinema, theater, radio or
television is essential: Provided, the employment contract is
concluded by the child’s parents or guardian, with the express
agreement of the child concerned, if possible, and the approval of
the Department of Labor and Employment: and Provided, That
the following requirements in all instances are strictly complied
with:

a. The employer shall ensure the protection, health, safety and

morals of the child
b. The employer shall institute measures to prevent the child’s
exploitation or discrimination taking into account the system and
level of remuneration, and the duration and arrangement of
working time
c. The employer shall formulate and implement, subject to the
approval and supervision of competent authorities, a continuing
program for training and skills acquisition of the child.

In the above exceptional cases where any such child may be

employed, the employer shall first secure, before engaging such
child, a work permit from the Department of Labor and
Employment which shall ensure observance of the above
requirements.

Art. 72
Apprentices without compensation
The Secretary of Labor may authorize the hiring of apprentices
without compensation whose training on the job is required by
the school or training program curriculum or as a requisite for
graduation or board examination.

Art. 71
Deductibility of training costs - An additional deduction from
taxable income of one-half 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 such program is
duly recognized by the Department of Labor and Employment;
provided further that such deduction shall not exceed 10 percent
of direct labor wage; and provided finally that the person or
enterprise who wish to avail of this incentive should pay his
apprentices the minimum wages.

4.05 Learners

Defined

Sec. 4 (n), RA 7796

“Learners” refer to persons hired as trainees in semi-skilled and
other industrial occupation which are non-apprenticeable.
Learnership programs must be approved by the Authority.

Allowed Employment

Art. 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.

Art. 75
Learnership agreement – Any employer desiring to employer
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 months;
(c) The WAGES or salary rates of the learners which shall begin
at not less than 75 percent 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 months shall be deemed regular employees if training is
terminated by the employer before the end of the stipulated
period through no fault of the learner.

The learnership agreement shall be subject to inspection by the

Secretary or his duly authorized representatives.

Art. 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.
C. Handicapped Workers

4.06 Handicapped Worker

Law : RA 7277 “Magna Carta for Disabled Persons”

WAGE DISTORTION

Wage distortion - a situation where an increase in

prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wage
or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions
embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation

- Where the application of any prescribed wage increase by

virtue of a law or wage order issued by any regional board results
in distortions of wage structure within an establishment, the
employer and the union shall negotiate to correct the distortions.

- Any dispute arising from wage distortions shall be resolved

through the grievance procedure under their collective bargaining
agreement and, if it remains unresolved, through voluntary
arbitration.

 Unless otherwise agreed by the parties in writing, such

dispute shall be decided by the voluntary arbitrator or panel of
voluntary arbitrators within 10 calendar days from the time said
dispute was referred to voluntary arbitration.

- In cases where there are no collective bargaining agreements

or recognized labor unions, the employers and workers shall
endeavor to correct such distortions.

Any dispute arising therefrom shall be settled through the

National Conciliation and Mediation Board and, if it remains
unresolved after 10 calendar days of conciliation, shall be
referred to the appropriate branch of the National Labor Relations
Commission (NLRC).

Wage Distortion

1. Cause: implementation of a wage order increase prescribe

minimum wage rate

2. Result:
 Elimination OR severe contraction of intentional quantitative
wages/salary rates between or among employees

 Effectively obliterates distinctions on wage structure which

was based on skills, length of service or other logical differences.

3. Procedure for Settlement

a. Organized Establishment
1. CBA Grievance Procedure
2. Voluntary Arbitration

b. Unorganized Establishment
1. Employer and employee, with aid of National
Conciliation Mediation Board (NCMB) settles conciliation
mediation
2. NLRC – Compulsory Arbitration

NOTES:

 Both the employer and employee cannot use economic

weapons (Employer cannot declare a lock-out; Employee cannot
declare a strike) because the law has provided for a procedure
for settling

 Cases say that:

1. Parties are encouraged to settle the dispute voluntarily

2. Neither party can use economic weapons
3. Original decree of differential need not be restored
4. NLRC has no authority to impose directly or indirectly under
guise of rectifying a wage distortion upon the employer a new
scheme of classification

10.05 Effect of Benefits

Art. 100
Prohibition against elimination or diminution of benefits

Nothing in this Book shall be construed to eliminate or in any way

diminish supplements or other employee benefits being enjoyed
at the time of the promulgation of this Code.

Davao Fruits Corporation v. Associated Labor Unions

(93)

A company practice favorable to the employees had indeed been

established and the payments made pursuant thereto, ripened
into benefits enjoyed by them. And any benefit and supplement
being enjoyed by the employees cannot be reduced, diminished,
discontinued or eliminated by the employer, by virtue of Section
10 of the Rules and Regulations Implementing P.D. No. 851, and
Article 100 of the Labor Code of the Philippines, which prohibit
the diminution or elimination by the employer of the employees'
existing benefits (Tiangco v. Leogardo, Jr. ).

Paternity Leave Act of 1996 (RA 8187)

Sec. 2:
Notwithstanding any law, rules and regulations to the
contrary, every MARRIED male employee in the private and
public sectors shall be entitled to a paternity leave of seven
(7) days with full pay FOR THE FIRST FOUR (4)
DELIVERIES OF THE LEGITIMATE SPOUSE WITH WHOM HE
IS COHABITING. The male employee applying for paternity
leave shall notify his employer of the pregnancy of his legitimate
spouse and the expected date of such delivery.
For the purposes of this Act, delivery shall include childbirth or
any miscarriage.

The gravamen of the offense in sexual harassment is not the

violation of the employee's sexuality but the abuse of power by
the employer. Any employee, male or female, may rightfully cry
"foul" provided the claim is well substantiated. Strictly speaking,
there is no time period within which he or she is expected to
complain through the proper channels. The time to do so may
vary depending upon the needs, circumstances, and more
importantly, the emotional threshold of the employee.

Working Children

Sec. 12 (RA 7610, as amended by RA 7658) - Employment of

Children – Children below fifteen (15) years of age shall not be
employed except:
3. When a child works directly under the sole responsibility of his
parents or legal guardian and where only members of the
employer’s family are employed: Provided, however, That his
employment neither endangers his life, safety, health and
morals, nor impairs his normal development: Provided, further,
That the parent or legal guardian shall provide the said minor
child with the prescribed primary and/or secondary education; or

4. When a child’s employment or participation in public and

entertainment or information through cinema, theater, radio or
television is essential: Provided, the employment contract is
concluded by the child’s parents or guardian, with the express
agreement of the child concerned, if possible, and the approval of
the Department of Labor and Employment: and Provided, That
the following requirements in all instances are strictly complied
with:

a. The employer shall ensure the protection, health, safety

and morals of the child
b. The employer shall institute measures to prevent the
child’s exploitation or discrimination taking into account the
system and level of remuneration, and the duration and
arrangement of working time
c. The employer shall formulate and implement, subject to
the approval and supervision of competent authorities, a
continuing program for training and skills acquisition of
the child.

In the above exceptional cases where any such child may be

employed, the employer shall first secure, before engaging such
child, a work permit from the Department of Labor and
Employment which shall ensure observance of the above
requirements.

Art. 141
= all persons rendering services in households for compensation.
"Domestic or household services" shall mean service in the
employer's home, which is usually necessary or desirable for the
maintenance and enjoyment thereof and includes ministering to
the personal comfort and convenience of the members of the
employer's household, including services of family drivers.

13.02Househelpers

Art. 141
= all persons rendering services in households for compensation.
"Domestic or household services" shall mean service in the
employer's home, which is usually necessary or desirable for the
maintenance and enjoyment thereof and includes ministering to
the personal comfort and convenience of the members of the
employer's household, including services of family drivers.

Apex Mining Co. v. NLRC

The term `househelper' as used herein is synonymous to the

term `domestic servant' and shall refer to any person, whether
male or female, who renders services in and about the
employer's home and which services are usually necessary or
desirable for the maintenance and enjoyment thereof, and
ministers exclusively to the personal comfort and enjoyment of
the employer's family.