Who are Not Covered by LC: - In Grepalife v.

Judico (180 SCRA 445) it was held that a

worker who is paid on a salary plus commission basis is an
GR: All rights and benefits granted to workers under the LC employee.
shall apply alike to all workers, whether agricultural or
non-agricultural. (LC, Art. 6). Non-diminution of Benefits

XPN: In the case of Wesleyan University-Philippines v. Wesleyan

University-Philippines Faculty and Staff Association,
1. Government Ees succinctly pointed outas found in Art 100, it explicitly
2. Ees of GOCC (government corporations) special or original prohibits employers from eliminating or reducing the
charter benefits received by their employees. This rule, however,
3. Foreign governments applies only if the benefit is based on any of the following:
4. International agencies (1) An express policy;
5. Corporate officers/intra-corporate disputes which fall (2) A written contract; or
under P.D. 902-A and now fall under the jurisdiction of the (3) A company practice
regular courts pursuant to the Securities Regulation Code.
6. Local water district except where NLRC’s jurisdiction is Company Practice is a custom or habit shown by an
invoked. employer’s repeated, habitual customary or succession of
7. As may otherwise be provided by the LC acts of similar kind by reason of which, it gains the status of a
company policy that can no longer be disturbed or
Labor-only Contracting withdrawn. To ripen toward such, it must not be by reason of
strict legal or contractual obligation but by reason of leberal
- Exist where the person supplying thw worker does not have act by ER.
substantial capital or investement in the form of teeols,
equipments, machineries, work premises among other; In one case it mentions the criterea whether the action had
- and the workers recruited and placed by such persons are ripen to a Company practice:
performing activities which are directly related to the (1) The act been done for a considerable period of time;
principal business of such employer. (2) Done consistently and intentionally; and
- “Labor-only” contractor is considered merely as an agent of (3) Not be a product of erroneous interpretation or
the employer and is responsible to the employees of the construction of a doubtful or difficult question of law or
“labor-only” contractor as if they had been directly employed provision in the CBA.
by the employer.
Grounds for Dismissal
In a nutshell:

1. The er/principal is treated as direct employer of the “Art. 282. Termination by employer. An employer may
contractor’s employees in all instances. (contractor = agent of terminate an employment for any of the following causes:
the employer)
2. the statute creates an er/ee relationship for a a. Serious misconduct or willful disobedience by the
comprehensive purpose. employee of the lawful orders of his employer or
3. The principal becomes solidarily liable with the contractor representative in connection with his work;
not only for unpaid wages but also for all the rightful claims b. Gross and habitual neglect by the employee of his
of the employees under the Labor Code and ancillary laws. duties;
4. Prohibited by law c. Fraud or willful breach by the employee of the trust
5. Absence of substantial capital or investment. reposed in him by his employer or duly authorized
representative;
d. Commission of a crime or offense by the employee
Two-tiered Test against the person of his employer or any immediate
member of his family or his duly authorized
1. The putative Er’s power to control the Ee with respect to representatives; and
the means and methods by which the work is to be e. Other causes analogous to the foregoing.”
accomplished (Four-fold test);
a) The selection & engagement of the putative
However, poor performance alone is not equal to gross and
employee;
habitual neglect of duty warranting dismissal for cause under
b) Payment of wages
Article 282. Gross inefficiency and unsatisfactory rating can
c) Power of Dismissal
be a just cause for dismissal only if it amounts to gross and
d) Power of Control over employee’s conduct
habitual neglect of duties. (Mitsubishi Motors Philippines
2. The underlying economic realities of the activity or
Corporation vs. Chrysler Philippines Labor Union, G.R. No.
relationship (economic reality test).
148738, June 29, 2004).

SERVICE CHARGES
These are charges collected by hotels, restaurants and others i. XPN to XPN: Corporations operating
at the rate of 85% for covered Ees equally distributed among essentially as privated subsidiaries of the
them, and 15% for the management to answer for losses and Government
breakages. b) Ers already paying their Ees 13th month pay
or more in a calendar year in its equivalent at
Applies to GR: All Ees are covered, regardless of their position, the time of the issuance of the Revised
designation, and employment status, irrespective of the Guidelines
method by which their wages are paid. c) Ers of those who are paid on purely basis of:
i. Commission (Bus & Conducters if they
Ex: Only to hotels, restaurants and similar establishment are paid a fixed or guaranteed minimum
collecting service charges. wage)
ii. Boundary; or
iii. Task; and
XPN: Managerial Ees (IRR, Book III, Rule VI, Sec. 2)
iv. Fixed amount for performing a specific
work
- Period to distribute the share of EE: not less than once
d) Distressed Ers:
every 2 weeks or twice a month at intervals not exceeding 16
i. Currently incurring substantial losses; or
days.
ii. In the case of non-profit institutions and
organizations, where their income,
Service charge vs. Tips whether from donations, contributions,
grants and other earnings from any
SC: Collected by Management from Customers. source, has consistently declined by
TIPS: Voluntary given by Customers to EE’s for excellent more than 40% of their normal income
service. for the last 2 years, subject to the
provision of Sec. 7 of P.D. 851
- If SC is ablished, it shall be integrated in their wages based
on their average monthly share of each EEs for the past Does not Apply To: Piece-Rate Workers
12months immediately preceeding the abolition. Handicap Workers
- SC also forms part of the award in illegal dismissal cases.
Rights and privileges of PWD
13th Month Pay
1. Equal opportunity for employment - No PWD shall be
- Required under PD 851, where ER are to pay a 13th month denied access to opportunities for suitable employment. Five
based from 1/12 of the basic annual salary of the EE. It is percent (5%) of all casual emergency and contractual
based on wage but not part of it. positions in the DSWD, Health, Education and other
- The absence of an express provision in the CBA obligating government agencies, offices or corporations engaged in
the Er to pay the members of a union 13th month pay is social development shall be reserved for PWDs. (Section 5,
immaterial. Notwithstanding therefore the absence of any Chapter 1, Title II, RA 7277)
contractual agreement, the payment of a 13th month pay
being a statutory grant, compliance with the same is 2. Sheltered employment - The Government shall endeavour
mandatory and is deemed incorporated in the CBA. to provide them work if suitable employment for disabled
persons cannot be found through open employment
APLLIES TO: EE’s should have worked for atleast one month 3. Apprenticeship - PWD may be hired as apprentices or
during a calendar year. (No. X[A], DOLE Handbook on learners if their disability is not such as to effectively impede
Workers Statutory Monetary Benefits the performance of job operations in the particular
occupations for which they are hired (LC, Art. 81).
1. Employees, 4. Vocational rehabilitation - To develop the skills and
GR: All rank-and-file regardless of said designation of potentials of disabled workers and enable them to compete
employment status, and irrespective of the method by in the labor market
which their wages are paid. 5. Vocational guidance and counselling
XPN:
a) Government Ees; Wage Rate
b) Ees paid purely on commission basis;
c) Ees already receiving 13th month pay - Art 80: Not less than seventy-five percent (75%) of the
d) Managers (may receive 13th month pay, if applicable adjusted minimum wage
such payment has been a company practice)
e) Seafarers XPN: All qualified handicapped workers shall receive the full
amount of the minimum wage pursuant to RA 7277. If
2. Employers dsability does not directly affect their performance or work.
GR: All Ers are covered by PD 581.
XPN: - If hired as Apprentice / Learner: Not less than 75%
a. The Government and any of its political applicable minimum wage
subdivisions, including GOCCs;
- If Learner & Employed in Piece or Incentive rate jobs during Provided, however, that such entities present proof as
the Training period: Paid 100% of applicable Minimum Wage. certified by the DOLE that disabled persons are under
their employ

Prohibitions on Discrimination Against Persons With Provided further, that the disabled Ee is accredited with
Disability the DOLE and the Department of Health as to his
disability, skills and qualifications.
The following constitutes acts of discrimination:
3. Private entities that improve or modify their physical
1. Limiting, segregating, or classifying a job applicant with facilities in order to provide reasonable accommodation for
disability in such a manner that adversely affects his work disabled persons shall also be entitled to an additional
opportunities; deduction from their net taxable income, equivalent to 50%
of the direct costs of the improvements or modifications (R.A.
2. GR: Using qualification standards, employment tests or 7277, Sec. 8).
other selection criteria that screen out or tend to screen out
a PWD;
XPN: Such standards, tests or other selection criteria are The financial incentive, if any, granted by law to SPQ
shown to be job-related for the position in question and Garments whose cutters and sewers in its
are consistent with business necessity garments-for-export operations are 80% staffed by deaf and
deaf-mute workers is additional deduction from its gross
3. Utilizing standards, criteria, or methods of administration income equivalent to 25% of amount paid as salaries to
that: persons with disability. (2013 Bar) Basis: Magna Carta for
a. Have the effect of discrimination on the basis of Disabled Persons.
disability; or
b. Perpetuate the discrimination of others who are
subject to common administrative control PAYMENT OF WAGES

4. Providing less compensation, by reason of his disability, The laborer’s wages shall be paid in legal currency (Art.
that the amount to which a nondisabled person performing 1705, NCC)
the same work is entitled;

5. Favoring a non-disabled Ee over a qualified Ee with Prohibition: No employer shall pay the wages of an employee
disabilty with respect to promotion, training opportunities, by means of promissory notes, vouchers, coupons, tokens,
study and scholarship grants, solely on account of the latter’s tickets, chits, or any object other than legal tender, even
disability; when expressly requested by the employee

6. GR: Dismissing or terminating the services of an Ee with Payment of wages by check or money order shall be allowed
disability by reason of his disability if it is customary on the date of the effectivity of the Code or
XPN: the Er can prove that he impairs the satisfactory necessary because of special circumstances as specified in
performance of the work involved to the prejudice of the regulation issued by the SLE. (Art. 102, Labor Code)
the business entity; provided, however, that the Er first
sought to provide reasonable accommodations for Place of Payment
persons with disability; 1. Near the place of undertaking
2. Place provided by regulations of SLE to ensure
7. Failing to select or administer in the most effective 3. XPN: RA 6727 thru banks (ATM, Cash WIthdrawal Teller)
manner employment tests which accurately reflect the skills,
aptitude or other factor of the applicant or employee with
disabilty that such test purports to measure, rather than the
impaired sensory manual or speaking skills of such applicant
or employee, in any; and

8. Excluding PWD from membership in labor unions or similar

organizations. (Section 32, Chapter I, Title III, RA 7277)

INCENTIVES FOR EMPLOYERS

Incentives of Er who are employing disabled workers

1. Entitled to an additional deduction, from their gross

income, equivalent to 25% of the total amount paid as
salaries and wages to disabled persons