1-6 Fiel, 19-23 Sir Duque

7-12 Encina 24-28 Sir Val

13-18 Wacky 29-33 Sir Marbella
Cover to cover booklet to avoid cheating.
25 items t or false 25 items multiple choice question.
1 essay, answerable by feelings? (don’t worry about it)
1) Illegal recruitment
2) what is the 4-fold test
3) control test
4) the different types of employment what to consider in regular?
5) How to consider Casual?
6) The landmark case of brent school (fix term employment)
7) The landmark case of ANZ case. Employment contract with a suspensive
condition/ labor only contracting (what happens)
8) requirements for termination procedural and substantive/
9) right to self-organization (allowed ba govt or not?)
10)Those GOCC?
11) With original charter?
12)what is bargaining unit?
13)Process of check off?
14)CBA is a consensual contract?
15)Does it need to be in writing?
16)when the need to retroactivity the CBA
17)what are the rules what is the CBA is concluded 6 months?
18)Or after ULP? Jurisdiction of LA appeal? Whereto?
19)money claims? Hours of work? Who are considered covered and excluded in
title 1 book v?
20)different requisites on the ground for just cause?
21)Serious misconduct? Fraud? Willful breach of trust?
22)Portability limited portability law SSs/GSIS 5.
23)Preventive suspension as well/ what are the requirements penalty?
24)Bonuses? 13th month pay/ rules
PRESIDENTIAL DECREE NO. 851

RULES AND REGULATIONS IMPLEMENTING

PRESIDENTIAL DECREE NO. 851

By virtue of the powers vested in me by law, the following rules and

regulations implementing Presidential Decree No. 851 are hereby
issued for the guidance of all concerned.

Section 1. Payment of 13th-month Pay. - All employers covered

by Presidential Decree No. 851, hereinafter referred to as
the "Decree", shall pay to all their employees receiving a basic
salary of not more than P1,000 a month a thirteenth-month pay not
later than December 24 of every year.

Sec. 2. Definition of certain terms. - As used in this issuance:

chanroblesvirtuallawlibrary

(a) "Thirteenth-month pay" shall mean one twelfth (1/12) of the

basic salary of an employee within a calendar year;

(b) "Basic salary" shall include all remunerations or earnings paid by

an employer to an employee for services rendered but may not
include cost-of-living allowances granted pursuant to Presidential
Decree No. 525 or Letter of Instructions No. 174, profit-sharing
payments, and all allowances and monetary benefits which are not
considered or integrated as part of the regular or basic salary of the
employee at the time of the promulgation of the Decree on
December 16, 1975.

Sec. 3. Employers covered. - The Decree shall apply to all employers

except to: chan robles virtual law library

(a) Distressed employers, such as (1) those which are currently

incurring substantial losses or (2) in the case of non-profit
institutions and organizations, where their income, whether from
donations, contributions, grants and other earnings from any source,
has consistently declined by more than forty (40%) percent of their
normal income for the last two (2) years, subject to the provision of
Section 7 of this issuance;

(b) The Government and any of its political subdivisions, including

government-owned and controlled corporations, except those
corporations operating essentially as private subsidiaries of the
Government;

(c) Employers already paying their employees 13-month pay or more

in a calendar year or its equivalent at the time of this issuance;

(d) Employers of household helpers and persons in the personal

service of another in relation to such workers; and

(e) Employers of those who are paid on purely commission,

boundary, or task basis, and those who are paid a fixed amount for
performing a specific work, irrespective of the time consumed in the
performance thereof, except where the workers are paid on piece-
rate basis in which case the employer shall be covered by this
issuance insofar as such workers are concerned.

As used herein, workers paid on piece-rate basis shall refer to those

who are paid a standard amount for every piece or unit of work
produced that is more or less regularly replicated, without regard to
the time spent in producing the same.

The term "its equivalent" as used in paragraph c) hereof shall

include Christmas bonus, mid-year bonus, profit-sharing payments
and other cash bonuses amounting to not less than 1/12th of the
basic salary but shall not include cash and stock dividends, cost of
living allowances and all other allowances regularly enjoyed by the
employee, as well as non-monetary benefits. Where an employer
pays less than 1/12th of the employees basic salary, the employer
shall pay the difference.

Sec. 4. Employees covered. - Except as provided in Section 3 of this

issuance, all employees of covered employers shall be entitled to
benefit provided under the Decree who are receiving not more than
P1,000 a month, regardless of their position, designation or
employment status, and irrespective of the method by which their
wages are paid, provided that they have worked for at least one
month during the calendar year.
Sec. 5. Option of covered employers. - A covered employer may pay
one-half of the 13th-month pay required by the Decree before the
opening of the regular school year and the other half on or before
the 24th day of December of every year.

In any establishment where a union has been recognized or certified

as the collective bargaining agent of the employees therein, the
periodicity or frequency of payment of the 13th-month pay may be
the subject of agreement.

Nothing herein shall prevent employers from giving the benefits

provided in the Decree to their employees who are receiving more
than One Thousand (P1,000) Pesos a month or benefits higher than
those provided by the Decree.

Sec. 6. Special feature of benefit. - The benefits granted under this

issuance shall not be credited as part of the regular wage of the
employees for purposes of determining overtime and premium pay,
fringe benefits, as well as premium contributions to the State
Insurance Fund, social security, medicare and private welfare and
retirement plans.

Sec. 7. Exemption of Distressed employers. - Distressed employers

shall qualify for exemption from the requirement of the Decree upon
prior authorization by the Secretary of Labor. Petitions for
exemptions may be filed within the nearest regional office having
jurisdiction over the employer not later than January 15, 1976. The
regional offices shall transmit the petitions to the Secretary of Labor
within 24 hours from receipt thereof.

Sec. 8. Report of compliance. - Every covered employer shall make a

report of his compliance with the Decree to the nearest regional
labor office not later than January 15 of each year.

The report shall conform substantially with the following

form:chanroblesvirtuallawlibrary

REPORT ON COMPLIANCE WITH P.D. NO. 851

1. Name of establishment
2. Address
3. Principal product or business
4. Total employment
5. Total number of workers benefited
6. Amount granted per employee
7. Total amount of benefits granted
8. Name, position and tel. no. of person giving information

Sec. 9. Adjudication of claims. - Non-payment of the thirteenth-

month pay provided by the Decree and these rules shall be treated
as money claims cases and shall be processed in accordance with
the Rules Implementing the Labor Code of the Philippines and the
Rules of the National Labor Relations Commission.

Sec. 10. Prohibition against reduction or elimination of

benefits. - Nothing herein shall be construed to authorize any
employer to eliminate, or diminish in any way, supplements, or other
employee benefits or favorable practice being enjoyed by the
employee at the time of promulgation of this issuance.
Sec. 11. Transitory Provision. - These rules and regulations shall
take effect immediately and for purposes of the 13th-month pay for
1975, the same shall apply only to those who are employees as of
December 16, 1975.

25)LABOR only contract

“Labor-only contracting” – refers to arrangement where the contractor or subcontractor merely
recruits, supplies or places workers to perform a job or work for a principal, and the elements
enumerated in Section 5 hereunder are present.
Summary

▪ Labor-only contracting is prohibited.

▪ It refers to an arrangement that violates the laws and regulations on contracting and job
contracting.

▪ All contractors are presumed to be labor-only contractors by default.

▪ Finding of labor-only contracting results in the principal being declared as the employer.

▪ There are illicit forms of employment arrangements that are prohibited in contracting and
subcontracting.

1. Concept

Under Department Order No. 174, series of 2017 (DO-174), issued by the Department of Labor
and Employment (DOLE), labor-only contracting is prohibited.

Labor-only contracting refers to an arrangement whereby:

1) The contractor or subcontractor does not exercise the right to control over the performance of
the work of the employee; or

2) The contractor’s or subcontractor’s employees recruited and placed are performing activities
which are directly related to the main business operation of the principal, plus: (a) the contractor
or subcontractor does not have substantial capital; or (b) the contractor or subcontractor does not
have investments in the form of tools, equipment, machineries, supervision, work premises,
among others. (Section 5, DO-174)

Labor-only contracting was further defined as an arrangement where the contractor

merely recruits, supplies or places workers to perform a job, work or service for a
principal;35 and (a) the contractor does not have substantial capital or investments in
the form of tools, equipment, machineries, work premises, among others, and the
employees recruited and placed are performing activities which are usually necessary,
or desirable to the operation of the company, or directly related to the main business of
the principal within a definite or predetermined period, regardless of whether such job,
work or service is to be performed, or completed within, or outside the premises of the
principal; or (b) the contractor does not exercise the right to control over the
performance of the work of the employee.36

Verily, not all forms of contracting are prohibited. The law allows contracting and
subcontracting of services, but closely regulates these activities for the protection of
workers. An employer can contract out part of its operations, provided, it complies with
the limits and standards provided in the Labor Code and in its implementing
rules.37 Contracting or subcontracting shall be legitimate if all the following
circumstances concur:

(a) The contractor must be registered in accordance with the rule and carries a
distinct and independent business and undertakes to perform the job, work or
 service on its own responsibility, according to its own manner and method, and
free from control and direction of the principal in all matters connected with the
performance of the work except as to the results thereof;

The contractor has substantial capital and/or investment; and

(b) The Service Agreement ensure compliance with all the rights and benefits
under Labor Laws.38

(c)

While the existence of registration in favor of a contractor is a strong badge of

legitimacy, the elements of substantial capital, or investment and control over the
workers may be examined to rebut the presumption of regularity to prove that a
contractor is not a legitimate one.39 In Consolidated Building Maintenance, Inc. v.
Asprec, Jr.,40 this Court held that there was legitimate job contracting since the
contractor was able to prove that it had sufficient capital and investment to sustain its
manpower business, and that it ran a trade independent from the principal. Likewise,
the contractor retained the right of control over its employees and exercised the right in
the selection and engagement, payment of wages, dismissal, and control over the
employees' conduct.

In this case, the respondents submitted two of Workpool Manpower's certificates of

registration with the DOLE Davao Region: the first was issued on Aprill6, 2010, and
valid until Aprill5, 2013;42 and the second was issued June 14, 2013, valid until June
13, 2016.43 Notwithstanding Workpool Manpower's registration, its contractor status
may be evaluated on the basis of its activities.44 Differently stated, in distinguishing
between permissible job contracting and prohibited labor-only contracting, the totality of
the facts and the surrounding circumstances of the case are to be considered, each
case to be determined by its own facts, and all the features of the relationship
assessed.

26)Wage distortion
I. WAGES
1. How much is the minimum wage in Metro Manila? P446.00 (Basic Wage P426.00 + COLA
P20.00) is the current minimum wage in National Capital Region (NCR) including Metro Manila
under Wage Order NCR-17 which took effect on June 03, 2012 and P456.00 (additional P10.00
COLA) effective November 1, 2012.
2. Where can we find the current minimum wages in the different regions? The public may visit
the website at www.nwpc.dole.gov.ph or call the Regional Tripartite Wages and Productivity
Board (RTWPB) which has jurisdiction over the workplace.
3. Who are covered by the wage orders? All minimum wage earners in the private sector are
covered by wage orders, regardless of their position, designation or status of employment and
irrespective of the method by which their wages are paid.
4. Who are excluded from the coverage of the minimum wage law? a) Household or domestic
helpers; b) Persons employed in the personal service of another; c) Workers of registered
Barangay Micro Business Establishments (BMBEs)
5. What is the basis for computing the minimum wage? It is based on the normal working hours
which shall not exceed eight (8) hours of work a day.
6. What is the basis for entitlement to COLA? The basis for entitlement to COLA is whether or
not a worker is paid the basic pay. Accordingly, a worker who is not paid the basic pay is not
entitled to the COLA.
7. What is the rule in the case of transfer of personnel with regard to payment of wages? The
transfer of personnel to areas outside the NCR shall not be a valid ground for the reduction of
the wage rates being enjoyed by the workers prior to such transfer. The workers transferred to
the National Capital Region shall be entitled to the minimum wage rate applicable therein.
8. What is the applicable minimum wage for mobile and branch workers? The minimum wage
for workers who, by the nature of their work have to travel, shall be those applicable in the
domicile or head office of the employer. The minimum wage rates of workers working in
branches or agencies of establishments in or outside the NCR shall be those applicable in the
place where they are stationed.
9. How is a mobile worker different from a branch worker? Mobile worker is a worker who by
the nature of his work has to travel Branch worker is a worker working in branches or agencies
of establishments in or outside the National Capital Region.
10. Are exemptions from wage orders allowed? Yes, provided that the wage order expressly
provides for exemption. The following exemptible categories: (NWPC Amended Rules on
Exemption) a) Distressed establishments; b) New Business Enterprise; c) Retail/Service
establishments regularly employing not more than ten (10) workers; and d) Establishments
adversely affected by natural calamities.
11. What is the maximum duration of exemption? One (1) year from effectivity of the wage
order
12. What is the application of wage orders to contractors? Increase shall be borne by the
principals or clients Contract is deemed amended
13. What is the application of wage orders to workers paid by result? All workers paid by result,
including those who are paid on piece work, “takay” or task basis, shall be entitled to receive
not less than the prescribed daily minimum wage or a proportion thereof for working less than
eight (8) hours.
14. Are minimum wage earners exempt from paying income tax? Yes, minimum wage earners
shall be exempt from payment of income tax. (Sec. 2(2) of RA 9504 National Internal Revenue
Code)
15. What are the elements of wage distortion?  Severe contraction by more than 50%; 
Existing hierarchy of position with corresponding salary rates;  A significant change in the
salary rates of a lower pay class without a concomitant increase in the salary rate of a higher
one;  The eliminations of the distinction between pay of 2 workers; and  The existence of the
distinction in the same region. (Prubankers Asso. Vs. Prudential Bank and Trusts Co. 302 SCRA
74)
16. What are the procedures to correct wage distortion? - For organized firms:  Employer and
union negotiate through grievance procedure in the CBA  If unresolved, through voluntary
arbitration - For unorganized firms:  Employer and workers negotiate  Dispute settled
through the NCMB  If unresolved, through compulsory arbitration at the NLRC
17. Is the P22.00 under Wage Order No. NCR-16 subject to income tax? No. It forms part of the
new minimum wage rate for private sector workers in the NCR. Minimum wage earners are
exempt from payment of income tax on their taxable income. (RA 9504 – An Act Granting Tax
Exemption to Minimum Wage Earners).
18. An employee reported for work during a regular holiday entitling him to additional
compensation of 100% on his regular daily wage. Is his holiday pay subject to income tax? No.
The tax exemption on minimum wage covers holiday pay, overtime pay, night shift differential
and hazard pay, if any. (RA 9504 and BIR Revenue Memorandum Circular No. 23-2011).
19. What income other than the minimum wage being received by an employee is subject to
income tax? It includes additional income earned from employment, business or practice of
profession. Likewise, commissions and fixed monthly allowances received on top of the
minimum wage paid the employee are subject to income tax.
20. An employee works in a manufacturing firm in the National Capital Region. He was
promoted as supervisor in July 2011 for his exemplary performance, which raised his salary
above the minimum wage. Is his entire salary earned during 2011 taxable? No. He is still exempt
from income tax during the time his salary does not exceed the minimum wage, particularly
those earned from January to June 2011. He should only be subject to income tax beginning
July 2011 if his salary exceeds his personal and additional exemptions.
21. An employee who works in a big mall in the National Capital Region is receiving the
minimum wage of P426.00 a day. He was transferred to a branch in Dasmarinas Cavite, where
the current minimum wage is P315.00 a day. Despite the transfer, he continued to receive
P426.00 a day. Is he still considered a minimum wage earner exempt from income tax? No.
Since his daily wage is already above the current minimum wage in Dasmarinas, Cavite.
II. WAGE RELATED BENEFITS
22. What is the normal hours of work in a day? 8 hours is the normal work hours in a day.
23. How long is the meal period in a day? 60 minutes or 1 hour time-off for regular meals of
employees should be provided by the employer. It is non-compensable.
24. What is the weekly rest day of an employee? A rest day of 24 consecutive hours or 1 day for
every 6 days of work should be scheduled by the employer upon consultation with the workers.
25. What is holiday pay? Holiday pay refers to payment of the regular daily wage for any
unworked regular holiday.
26. How many regular holidays are there in a year? There are 12 regular holidays under
Executive Order No. 292 as amended by RA 9849: New Year’s Day - January 1 Maundy Thursday
- Movable Date Good Friday - Movable Date Araw ng Kagitingan - April 9 Labor Day - May 1
Independence Day - June 12 National Heroes’ Day - Last Monday of August Eid’l Fitr - Movable
Date Eid’l Adha - Movable Date Bonifacio Day - November 30 Christmas Day - December 25 Rizal
Day - December 30
27. What is the condition so that an employee will be entitled to holiday pay?  He/She should
be present on the workday immediately preceding the regular holiday; or  He/She should be
on leave of absence with pay on the day immediately preceding the regular holiday
28. How much is the holiday pay of an employee?  For any unworked regular holiday, 100% of
the employee’s daily wage rate.  For work performed on a regular holiday, plus 100% or a total
of 200% of the employee’s daily wage rate.
29. What is premium pay? Premium pay refers to the additional payment for work within 8
hours on rest days or special days.
30. How many national Special Days are there in a year? There are 3 special days under
Executive Order No. 292 as amended by RA 9849: Ninoy Aquino Day - August 21 All Saints Day -
November 1 Last Day of the Year - December 31
27)Management prerogative
Management prerogative is the inherent right of the employer to regulate all aspects of
employment. There are two limitations to management prerogative: (a) good faith, and
(b) employee rights.

1. Concept
“Management prerogative” – refers to the employer’s bundle of rights in relation to all
aspects of employment, from pre-employment to post-employment, and everything in
between.
Under the doctrine of management prerogative, every employer has the inherent right to
regulate, according to his own discretion and judgment, all aspects of employment,
including hiring, work assignments, working methods, the time, place and manner of
work, work supervision, transfer of employees, lay-off of workers, and discipline,
dismissal, and recall of employees. (Rural Bank of Cantilan, Inc. v. Julve, G.R. No.
169750, 27 February 2007)
As a privilege inherent in the employer’s right to control and manage its enterprise
effectively, its freedom to conduct its business operations to achieve its purpose cannot
be denied. (Peckson v. Robinsons Supermarket Corporation, G.R. No. 198534, 03 July
2013)

Management prerogative is a function associated with the employer’s inherent right to

control and manage effectively its enterprise. Even as the law is solicitous of the welfare
of employees, it must also protect the right of an employer to exercise what are clearly
management prerogatives. The free will of management to conduct its own business
affairs to achieve its purpose cannot be denied. (SCA Hygiene Products Corporation
Employees Association-FFW v. SCA Hygiene Products Corporation, G.R. No. 182877,
09 August 2010)

a. Business judgment rule

The Supreme Court “is mindful that every business strives to keep afloat during these
times when prevailing economic situations turns such endeavor into a near struggle. With
as much latitude as our laws would allow, the Court has always respected a company’s
exercise of its prerogative to devise means to improve its operations. Thus, we have held
that management is free to regulate, according to its own discretion and judgment, all
aspects of employment, including hiring, work assignments, working methods, time,
place and manner of work, processes to be followed, supervision of workers, working
regulations, transfer of employees, work supervision, lay off of workers and discipline,
dismissal and recall of workers. Further, management retains the prerogative, whenever
exigencies of the service so require, to change the working hours of its employees.”
(Unicorn Safety Glass, Inc. v. Basarte, G.R No. 154689, 25 November 2004)

Jurisprudence recognizes the exercise of management prerogatives. Labor laws also

discourage interference with an employer’s judgment in the conduct of its business. For
this reason, the Court often declines to interfere in legitimate business decisions of
employers. The law must protect not only the welfare of employees, but also the right of
employers. (Endico v. Quantum Foods Distribution Center, G.R. No. 161615, 39 January
2009)

It is a well-settled rule that labor laws do not authorize interference with the employer’s
judgment in the conduct of its business. The Labor Code and its implementing rules do
not vest managerial authority in the labor arbiters or in the different divisions of the
National Labor Relations Commission or in the courts. (SCA Hygiene Products
Corporation Employees Association-FFW v. SCA Hygiene Products Corporation, G.R.
No. 182877, 09 August 2010)

In this light, courts often decline to interfere in legitimate business decisions of

employers. In fact, labor laws discourage interference in employers’ judgment concerning
the conduct of their business. (St. Luke’s Medical Center, Inc. v. Sanchez, G.R. No.
212054, 11 March 2015)

The Supreme Court has consistently refused to interfere with the exercise by management
of its prerogative to regulate the employees’ work assignments, the working methods and
the place and manner of work… As we all know, there are various laws imposing all
kinds of burdens and obligations upon the employer in relation to his employees, and yet
as a rule (the Supreme Court) has always upheld the employer’s prerogative to regulate
all aspects of employment relating to the employees’ work assignment, the working
methods and the place and manner of work. Indeed, labor laws discourage interference
with an employer’s judgment in the conduct of his business.” (Peckson v. Robinsons
Supermarket Corporation, G.R. No. 198534, 03 July 2013)

Indeed, labor laws discourage interference in employers’ judgments concerning the

conduct of their business. The law must protect not only the welfare of employees, but
also the right of employers. (Mendoza v. Rural Bank of Lucban, G.R. No. 155421, 07
July 2004)

b. Framework
Accordingly, the proper framework for human resource management should be to
understand that management prerogative is the general rule and labor laws/rules are the
exceptions/limitations.

This crucial knowledge is empowering to employers who understand the significance of

mastering management prerogative. Whereas many have it backwards placing labor
laws/rules as the general rule. As a result, these employers end up losing their wide
freedom to regulate all aspects of employment incorrectly thinking that they have to find
a legal basis for their actions in labor laws and regulations.

The purpose of labor laws and rules are to provide for the minimum standards to be
observed and complied by the employer. For example, just cause termination requires the
observance of at least 2 notices (1st and 2nd written notices) and an ample opportunity to
be heard in favor of the employee (written reply or administrative hearing). These are the
minimum required by law.

To put into context the framework, the general rule is: an employer may dismiss an
employee for just cause. The exception/limitation is: due process should be observed.

Given that the minimum required is to observe the 2 notices and an opportunity to be
heard in favor of the employee, the Company may – in the exercise of its management
prerogatives – choose to add more thereto in favor of the employees, such as observing 3
or 4 notices or requiring both written reply and then an administrative hearing.

Conversely, the employer should not go below the minimum required by law as it will be
prejudicial to the employees. For example, the employer should not just issue a
termination notice – as it will violate the 2-notice rule. If it does, then the employer may
be held liable for non-compliance with labor laws.

28).Kasambahay law

[REPUBLIC ACT NO. 10361]

AN ACT INSTITUTING POLICIES FOR THE PROTECTION

AND WELFARE OF DOMESTIC WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

29) ARTICLE I

GENERAL PROVISIONS

SECTION 1. Short Title. – This Act shall be known as the “Domestic Workers Act” or “Batas
Kasambahay”.

SEC. 2. Declaration of Policies. – It is hereby declared that:

(a) The State strongly affirms labor as a primary social force and is committed to respect,
promote, protect and realize the fundamental principles and rights at work including, but not
limited to, abolition of child labor, elimination of all forms of forced labor, discrimination in
employment and occupation, and trafficking in persons, especially women and children;
(b) The State adheres to internationally accepted working conditions for workers in general, and
establishes labor standards for domestic workers in particular, towards decent employment and
income, enhanced coverage of social protection, respect for human rights and strengthened social
dialogue;

(c) The State recognizes the need to protect the rights of domestic workers against abuse,
harassment, violence, economic exploitation and performance of work that is hazardous to their
physical and mental health; and

(d) The State, in protecting domestic workers and recognizing their special needs to ensure safe
and healthful working conditions, promotes gender-sensitive measures in the formulation and
implementation of policies and programs affecting the local domestic work.

SEC. 3. Coverage. – This Act applies to all domestic workers employed and working within the
country.

SEC. 4. Definition of Terms. – As used in this Act, the term:

(a) Debt bondage refers to the rendering of service by the domestic worker as security or
payment for a debt where the length and nature of service is not clearly defined or when the
value of the service is not reasonably applied in the payment of the debt.

(b) Deployment expenses refers to expenses that are directly used for the transfer of the domestic
worker from place of origin to the place of work covering the cost of transportation. Advances or
loans by the domestic worker are not included in the definition of deployment expenses.

(c) Domestic work refers to work performed in or for a household or households.

(d) Domestic worker or “Kasambahay” refers to any person engaged in domestic work within an
employment relationship such as, but not limited to, the following: general househelp, nursemaid
or “yaya”, cook, gardener, or laundry person, but shall exclude any person who performs
domestic work only occasionally or sporadically and not on an occupational basis.

The term shall not include children who are under foster family arrangement, and are provided
access to education and given an allowance incidental to education, i.e. “baon”, transportation,
school projects and school activities.

(e) Employer refers to any person who engages and controls the services of a domestic worker
and is party to the employment contract.

(f) Household refers to the immediate members of the family or the occupants of the house that
are directly provided services by the domestic worker.

(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership,
corporation or entity licensed to engage in the recruitment and placement of domestic workers
for local employment.

(h) Working children, as used under this Act, refers to domestic workers who are fifteen (15)
years old and above but below eighteen (18) years old.

ARTICLE II

RIGHTS AND PRIVILEGES

SEC. 5. Standard of Treatment. – The employer or any member of the household shall not
subject a domestic worker or “kasambahay” to any kind of abuse nor inflict any form of physical
violence or harassment or any act tending to degrade the dignity of a domestic worker.

SEC. 6. Board, Lodging and Medical Attendance. – The employer shall provide for the basic
necessities of the domestic worker to include at least three (3) adequate meals a day and humane
sleeping arrangements that ensure safety.
The employer shall provide appropriate rest and assistance to the domestic worker in case of
illnesses and injuries sustained during service without loss of benefits.

At no instance shall the employer withdraw or hold in abeyance the provision of these basic
necessities as punishment or disciplinary action to the domestic worker.

SEC. 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be
guaranteed at all times and shall extend to all forms of communication and personal effects. This
guarantee equally recognizes that the domestic worker is obliged to render satisfactory service at
all times.

SEC. 8. Access to Outside Communication. – The employer shall grant the domestic worker
access to outside communication during free time: Provided, That in case of emergency, access
to communication shall be granted even during work time. Should the domestic worker make use
of the employer’s telephone or other communication facilities, the costs shall be borne by the
domestic worker, unless such charges are waived by the employer.

SEC. 9. Right to Education and Training. – The employer shall afford the domestic worker the
opportunity to finish basic education and may allow access to alternative learning systems and,
as far as practicable, higher education or technical and vocational training. The employer shall
adjust the work schedule of the domestic worker to allow such access to education or training
without hampering the services required by the employer.

SEC. 10. Prohibition Against Privileged Information. – All communication and information
pertaining to the employer or members of the household shall be treated as privileged and
confidential, and shall not be publicly disclosed by the domestic worker during and after
employment. Such privileged information shall be inadmissible in evidence except when the suit
involves the employer or any member of the household in a crime against persons, property,
personal liberty and security, and chastity.

ARTICLE III

PRE-EMPLOYMENT

SEC. 11. Employment Contract. – An employment contract shall be executed by and between
the domestic worker and the employer before the commencement of the service in a language or
dialect understood by both the domestic worker and the employer. The domestic worker shall be
provided a copy of the duly signed employment contract which must include the following:

(a) Duties and responsibilities of the domestic worker;

(b) Period of employment;

(c) Compensation;

(d) Authorized deductions;

(e) Hours of work and proportionate additional payment;

(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;

(h) Agreements on deployment expenses, if any;

(i) Loan agreement;

(j) Termination of employment; and

(k) Any other lawful condition agreed upon by both parties.

The Department of Labor and Employment (DOLE) shall develop a model employment contract
for domestic workers which shall, at all times, be made available free of charge to domestic
workers, employers, representative organizations and the general public. The DOLE shall widely
disseminate information to domestic workers and employers on the use of such model
employment contract.

In cases where the employment of the domestic worker is facilitated through a private
employment agency, the PEA shall keep a copy of all employment contracts of domestic workers
and shall be made available for verification and inspection by the DOLE.

SEC. 12. Pre-Employment Requirement. – Prior to the execution of the employment contract, the
employer may require the following from the domestic worker:

(a) Medical certificate or a health certificate issued by a local government health officer;

(b) Barangay and police clearance;

(c) National Bureau of Investigation (NBI) clearance; and

(d) Duly authenticated birth certificate or if not available, any other document showing the age of
the domestic worker such as voter’s identification card, baptismal record or passport.

However, Section 12(a), (b), (c) and (d) shall be standard requirements when the employment of
the domestic worker is facilitated through the PEA.

The cost of the foregoing shall be borne by the prospective employer or agency, as the case may
be.

SEC. 13. Recruitment and Finder’s Fees. – Regardless of whether the domestic worker was
hired through a private employment agency or a third party, no share in the recruitment or
finder’s fees shall be charged against the domestic worker by the said private employment
agency or third party.

SEC. 14. Deposits for Loss or Damage. – It shall be unlawful for the employer or any other
person to require a domestic worker to make deposits from which deductions shall be made for
the reimbursement of loss or damage to tools, materials, furniture and equipment in the
household.

SEC. 15. Prohibition on Debt Bondage. – It shall be unlawful for the employer or any person
acting on behalf of the employer to place the domestic worker under debt bondage.

SEC. 16. Employment Age of Domestic Workers. – It shall be unlawful to employ any person
below fifteen (15) years of age as a domestic worker. Employment of working children, as
defined under this Act, shall be subject to the provisionsof Section 10(A), paragraph 2 of Section
12-A, paragraph 4 of Section 12-D, and Section 13 of Republic Act No. 7610, as amended,
otherwise known as the “Special Protection of Children Against Child Abuse, Exploitation and
Act”.

Working children shall be entitled to minimum wage, and all benefits provided under this Act.

Any employer who has been sentenced by a court of law of any offense against a working child
under this Act shall be meted out with a penalty one degree higher and shall be prohibited from
hiring a working child.

SEC. 17. Employer’s Reportorial Duties. – The employers shall register all domestic workers
under their employment in the Registry of Domestic Workers in the barangay where the
employer’s residence is located. The Department of the Interior and Local Government (DILG)
shall, in coordination with the DOLE, formulate a registration system for this purpose.

SEC. 18. Skills Training, Assessment and Certification. – To ensure productivity and assure
quality services, the DOLE, through the Technical Education and Skills Development Authority
(TESDA), shall facilitate access of domestic workers to efficient training, assessment and
certification based on a duly promulgated training regulation.

ARTICLE IV

EMPLOYMENT – TERMS AND CONDITIONS

SEC. 19. Health and Safety. – The employer shall safeguard the health and safety of the
domestic worker in accordance with laws, rules and regulations, with due consideration of the
peculiar nature of domestic work.

SEC. 20. Daily Rest Period. – The domestic worker shall be entitled to an aggregate daily rest
period of eight (8) hours per day.

SEC. 21. Weekly Rest Period. – The domestic worker shall be entitled to at least twenty-four
(24) consecutive hours of rest in a week. The employer and the domestic worker shall agree in
writing on the schedule of the weekly rest day of the domestic worker: Provided, That the
employer shall respect the preference of the domestic worker as to the weekly rest day when
such preference is based on religious grounds. Nothing in this provision shall deprive the
domestic worker and the employer from agreeing to the following:

(a) Offsetting a day of absence with a particular rest day;

(b) Waiving a particular rest day in return for an equivalent daily rate of pay;

(c) Accumulating rest days not exceeding five (5) days; or

(d) Other similar arrangements.

SEC. 22. Assignment to Nonhousehold Work. – No domestic worker shall be assigned to work in
a commercial, industrial or agricultural enterprise at a wage rate lower than that provided for
agricultural or nonagricultural workers. In such cases, the domestic worker shall be paid the
applicable minimum wage.

SEC. 23. Extent of Duty. – The domestic worker and the employer may mutually agree for the
former to temporarily perform a task that is outside the latter’s household for the benefit of
another household. However, any liability that will be incurred by the domestic worker on
account of such arrangement shall be borne by the original employer. In addition, such work
performed outside the household shall entitle the domestic worker to an additional payment of
not less than the existing minimum wage rate of a domestic worker. It shall be unlawful for the
original employer to charge any amount from the said household where the service of the
domestic worker was temporarily performed.

SEC 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than the
following:

(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National
Capital Region (NCR);

(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first
class municipalities; and

(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other
municipalities.

After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional
Tripartite and Productivity Wage Boards (RTPWBs) shall review, and if proper, determine and
adjust the minimum wage rates of domestic workers.

SEC 25. Payment of Wages. – Payment of wages shall be made on time directly to the domestic
worker to whom they are due in cash at least once a month. The employer, unless allowed by the
domestic worker through a written consent, shall make no deductions from the wages other than
that which is mandated by law. No employer shall pay the wages of a domestic worker by means
of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than the cash
wage as provided for under this Act.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

SEC. 26. Pay Slip. – The employer shall at all times provide the domestic worker with a copy of
the pay slip containing the amount paid in cash every pay day, and indicating all deductions
made, if any. The copies of the pay slip shall be kept by the employer for a period of three (3)
years.

SEC. 27. Prohibition on Interference in the Disposal of Wages. – It shall be unlawful for the
employer to interfere with the freedom of any domestic worker to dispose of the latter’s wages.
The employer shall not force, compel or oblige the domestic worker to purchase merchandise,
commodities or other properties from the employer or from any other person, or otherwise make
use of any store or services of such employer or any other person.

SEC 28. Prohibition Against Withholding of Wages. – It shall be unlawful for an employer,
directly or indirectly, to withhold the wages of the domestic worker. If the domestic worker
leaves without any justifiable reason, any unpaid salary for a period not exceeding fifteen (15)
days shall be forfeited. Likewise, the employer shall not induce the domestic worker to give up
any part of the wages by force, stealth, intimidation, threat or by any other means whatsoever.

SEC. 29. Leave Benefits. – A domestic worker who has rendered at least one (1) year of service
shall be entitled to an annual service incentive leave of five (5) days with pay: Provided, That
any unused portion of said annual leave shall not be cumulative or carried over to the succeeding
years. Unused leaves shall not be convertible to cash.

SEC. 30. Social and Other Benefits. – A domestic worker who has rendered at least one (1)
month of service shall be covered by the Social Security System (SSS), the Philippine Health
Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and
shall be entitled to all the benefits in accordance with the pertinent provisions provided by law.

Premium payments or contributions shall be shouldered by the employer. However, if the

domestic worker is receiving a wage of Five thousand pesos (P5,000.00) and above per month,
the domestic worker shall pay the proportionate share in the premium payments or contributions,
as provided by law.

The domestic worker shall be entitled to all other benefits under existing laws.

SEC. 31. Rescue and Rehabilitation of Abused Domestic Workers. – Any abused or exploited
domestic worker shall be immediately rescued by a municipal or city social welfare officer or a
social welfare officer from the Department of Social Welfare and Development (DSWD) in
coordination with the concerned barangay officials. The DSWD and the DILG shall develop a
standard operating procedure for the rescue and rehabilitation of abused domestic workers, and
in coordination with the DOLE, for possible subsequent job placement.

ARTICLE V

POST EMPLOYMENT

SEC. 32. Termination of Service. – Neither the domestic worker nor the employer may terminate
the contract before the expiration of the term except for grounds provided for in Sections 33 and
34 of this Act. If the domestic worker is unjustly dismissed, the domestic worker shall be paid
the compensation already earned plus the equivalent of fifteen (15) days work by way of
indemnity. If the domestic worker leaves without justifiable reason, any unpaid salary due not
exceeding the equivalent fifteen (15) days work shall be forfeited. In addition, the employer may
recover from the domestic worker costs incurred related to the deployment expenses, if
any: Provided, That the service has been terminated within six (6) months from the domestic
worker’s employment.
If the duration of the domestic service is not determined either in stipulation or by the nature of
the service, the employer or the domestic worker may give notice to end the working relationship
five (5) days before the intended termination of the service.

The domestic worker and the employer may mutually agree upon written notice to pre-terminate
the contract of employment to end the employment relationship.

SEC. 33. Termination Initiated by the Domestic Worker. – The domestic worker may terminate
the employment relationship at any time before the expiration of the contract for any of the
following causes:

(a) Verbal or emotional abuse of the domestic worker by the employer or any member of the
household;

(b) Inhuman treatment including physical abuse of the domestic worker by the employer or any
member of the household;

(c) Commission of a crime or offense against the domestic worker by the employer or any
member of the household;

(d) Violation by the employer of the terms and conditions of the employment contract and other
standards set forth under this law;

(e) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of
the household; and

(f) Other causes analogous to the foregoing.

SEC. 34. Termination Initiated by the Employer. – An employer may terminate the services of
the domestic worker at any time before the expiration of the contract, for any of the following
causes:

(a) Misconduct or willful disobedience by the domestic worker of the lawful order of the
employer in connection with the former’s work;

(b) Gross or habitual neglect or inefficiency by the domestic worker in the performance of
duties;

(c) Fraud or willful breach of the trust reposed by the employer on the domestic worker;

(d) Commission of a crime or offense by the domestic worker against the person of the employer
or any immediate member of the employer’s family;

(e) Violation by the domestic worker of the terms and conditions of the employment contract and
other standards set forth under this law;

(f) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of
the household; and

(g) Other causes analogous to the foregoing.

SEC. 35. Employment Certification. – Upon the severance of the employment relationship, the
employer shall issue the domestic worker within five (5) days from request a certificate of
employment indicating the nature, duration of the service and work performance.

ARTICLE VI

PRIVATE EMPLOYMENT AGENCIES

SEC. 36. Regulation of Private Employment Agencies (PEAs). – The DOLE shall, through a
system of licensing and regulation, ensure the protection of domestic workers hired through the
PEAs.
The PEA shall be jointly and severally liable with the employer for all the wages, wage-related
benefits, and other benefits due a domestic worker.

The provision of Presidential Decree No. 442, as amended, otherwise known as the “Labor Code
of the Philippines”, on qualifications of the PEAs with regard to nationality, networth, owners
and officers, office space and other requirements, as well as nontransferability of license and
commission of prohibited practices, shall apply.

In addition, PEAs shall have the following responsibilities:

(a) Ensure that domestic workers are not charged or levied any recruitment or placement fees;

(b) Ensure that the employment agreement between the domestic worker and the employer
stipulates the terms and conditions of employment and all the benefits prescribed by this Act;

(c) Provide a pre-employment orientation briefing to the domestic worker and the employer
about their rights and responsibilities in accordance with this Act;

(d) Keep copies of employment contracts and agreements pertaining to recruited domestic
workers which shall be made available during inspections or whenever required by the DOLE or
local government officials;

(e) Assist domestic workers with respect to complaints or grievances against their employers;
and

(f) Cooperate with government agencies in rescue operations involving abused or exploited
domestic workers.

ARTICLE VII

SETTLEMENT OF DISPUTES

SEC. 37. Mechanism for Settlement of Disputes. – All labor-related disputes shall be elevated to
the DOLE Regional Office having jurisdiction over the workplace without prejudice to the filing
of a civil or criminal action in appropriate cases. The DOLE Regional Office shall exhaust all
conciliation and mediation efforts before a decision shall be rendered.

Ordinary crimes or offenses committed under the Revised Penal Code and other special penal
laws by either party shall be filed with the regular courts.

ARTICLE VIII

SPECIAL PROVISIONS

SEC. 38. Information Program. – The DOLE shall, in coordination with the DILG, the SSS, the
PhilHealth and Pag-IBIG develop and implement a continuous information dissemination
program on the provisions of this Act, both at the national and local level, immediately after the
enactment of this law.

SEC. 39. “Araw Ng Mga Kasambahay”. – The date upon which the President shall approve this
“Domestic Workers Act” shall be designated as the “Araw ng mga Kasambahay”.

ARTICLE IX

PENAL AND MISCELLANEOUS PROVISIONS

SEC. 40. Penalty. – Any violation of the provisions of this Act declared unlawful shall be
punishable with a fine of not less than Ten thousand pesos (P10,000.00) but not more than Forty
thousand pesos (P40,000.00) without prejudice to the filing of appropriate civil or criminal
action by the aggrieved party.
SEC. 41. Transitory Provision; Non-Diminution of Benefits. – All existing arrangements
between a domestic worker and the employer shall be adjusted to conform to the minimum
standards set by this Act within a period of sixty (60) days after the effectivity of this
Act: Provided, That adjustments pertaining to wages shall take effect immediately after the
determination and issuance of the appropriate wage order by the RTWPBs: Provided,
further, That nothing in this Act shall be construed to cause the diminution or substitution of any
benefits and privileges currently enjoyed by the domestic worker hired directly or through an
agency.

SEC. 42. Implementing Rules and Regulations. – Within ninety (90) days from the effectivity of
this Act, the Secretary of Labor and Employment, the Secretary of Social Welfare and
Development, the Secretary of the Interior and Local Government, and the Director General of
the Philippine National Police, in coordination with other concerned government agencies and
accredited nongovernment organizations (NGOs) assisting domestic workers, shall promulgate
the necessary rules and regulations for the effective implementation of this Act.

30)Bargaining unit (form)

31)Petition for certification
32)LLO can do and cannot do?
33)ULP
34)Injunction