Pre Bar Labor Standards 1

Labor Law and
Social Legislation
Pre Bar Review
Atty. Peter Joey B. Usita
Fundamental Principles and
Policies
A. CONSTITUTIONAL PROVISIONS
Article II, Section 9. The State shall promote a just and dynamic
social order that will ensure the prosperity and independence of
the nation and free the people from poverty through policies
that provide adequate social services, promote full
employment, a rising standard of living, and an improved
quality of life for all.
Constitutional Provisions
Article II, Section 10. The State shall promote social

justice in all phases of national development.
Article II, Section 11. The State values the dignity of

every human person and guarantees full respect
for human rights.
Article II, Section 18. The State affirms labor as a
primary social economic force. It shall protect the
rights of workers and promote their welfare.
Article II, Section 20. The State recognizes the

indispensable role of the private sector,
encourages private enterprise, and provides
incentives to needed investments.
Article III, Section 1. No person shall be deprived of life, liberty, or

property without due process of law, nor shall any person be
denied the equal protection of the laws.
Article III, Section 4. No law shall be passed abridging the

freedom of speech, of expression, or of the press, or the right of
the people peaceably to assemble and petition the
government for redress of grievances.
Article III, Section 7. The right of the people to information
on matters of public concern shall be recognized. Access to
official records, and to documents and papers pertaining to
official acts, transactions, or decisions, as well as to
government research data used as basis for policy
development, shall be afforded the citizen, subject to such
limitations as may be provided by law.
Article III, Section 8. The right of the people, including those

employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law
shall not be abridged.
Article III, Section 10. No law impairing the obligation of contracts
shall be passed.
Article III, Section 16. All persons shall have the right to a speedy
disposition of their cases before all judicial, quasi-judicial, or
administrative bodies.
Article III, Section 18.
(2)No involuntary servitude in any form shall exist except as a

punishment for a crime whereof the party shall have been duly
convicted.
ARTICLE XIII, Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance the right
of all the people to human dignity, reduce social, economic,
and political inequalities, and remove cultural inequities by
equitably diffusing wealth and political power for the common
good.
To this end, the State shall regulate the acquisition, ownership,
use, and disposition of property and its increments.
ARTICLE XIII, Section 2. The promotion of social justice shall include

the commitment to create economic opportunities based on
freedom of initiative and self-reliance.
ARTICLE XIII, Section 3. The State shall afford full protection to
labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment
opportunities for all.
It shall guarantee the rights of all workers to self-organization,

collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in
accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making
processes affecting their rights and benefits as may be
provided by law.
ARTICLE XIII, Section 3.
.. The State shall promote the principle of shared responsibility

between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
ARTICLE XIII, Section 13. The State shall establish a special

agency for disabled person for their rehabilitation, self-
development, and self-reliance, and their integration into the
mainstream of society.
ARTICLE XIII, Section 14. The State shall protect working women
by providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable them
to realize their full potential in the service of the nation.
B. Civil Code
Article 19. Every person must, in the exercise of his rights and in
the performance of his duties, act with justice, give everyone his
due, and observe honesty and good faith.
Article 1700. The relations between capital and labor are not
merely contractual. They are so impressed with public interest
that labor contracts must yield to the common good. Therefore,
such contracts are subject to the special laws on labor unions,
collective bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar subjects.
Article 1702. In case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety and decent
living for the laborer.
C. Labor Code
Article 3. Declaration of basic policy. The State shall afford
protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed and
regulate the relations between workers and employers. The
State shall assure the rights of workers to self-organization,
collective bargaining, security of tenure, and just and humane
conditions of work.
Article 4. Construction in favor of labor. All doubts in the

implementation and interpretation of the provisions of this
Code, including its implementing rules and regulations, shall be
resolved in favor of labor.
Labor Code
Article 166. Policy. The State shall promote and develop a

tax-exempt employees compensation program whereby
employees and their dependents, in the event of work-
connected disability or death, may promptly secure
adequate income benefit and medical related benefits.
Labor Code
Article 211. Declaration of Policy.
It is the policy of the State:
To promote and emphasize the primacy of free collective

bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor or industrial
disputes;
To promote free trade unionism as an instrument for the

enhancement of democracy and the promotion of social justice
and development;
To foster the free and voluntary organization of a strong and

united labor movement;
Labor Code
Article 211 . Declaration of Policy.
To promote the enlightenment of workers concerning their

rights and obligations as union members and as employees;
To provide an adequate administrative machinery for the

expeditious settlement of labor or industrial disputes;
To ensure a stable but dynamic and just industrial peace; and

Labor Code
Article 211. Declaration of Policy.
To ensure the participation of workers in decision and policy-

making processes affecting their rights, duties and welfare.
To encourage a truly democratic method of regulating the
relations between the employers and employees by means of
agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to
set or fix wages, rates of pay, hours of work or other terms and
conditions of employment, except as otherwise provided under
this Code. (As amended by Section 3, Republic Act No. 6715,
March 21, 1989)
II. RECRUITMENT AND PLACEMENT
What is recruitment and
placement?
Any ACT:
Canvassing
Enlisting
Transporting
Contracting
Hiring
Utilizing
Procuring workers
Including: contract services, referrals, advertising
and promising
What is recruitment and
placement?
Any person or entity which, in any manner, offers
or promises for a fee employment to two or more
persons shall be deemed engaged in
recruitment and placement.
Purpose
Employment
Locally or abroad
Whether or not for profit
Note: Persons or entities in any manner offers for

a fee employment to two or more persons are
deemed engaged in recruitment and
placement.
When is there a presumption of
recruitment and placement?
Any person or entity which, in any manner, offers or promises
for a fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
Article 13(b) did not intend to impose a condition nor an

exception to the basic rule. It merely creates a presumption.
The number of persons dealt is not an essential ingredient.
Any of the acts constitute recruitment even f it is one person
being recruited. The proviso lays down a rule of evidence on
that presumption.
WHAT IS ILLEGAL
RECRUITMENT?
As defined in Article 38 of the Labor Code, Illegal
Recruitment is undertaken by non-licensees or
non-holders of authority.
RA 8042 (Migrant Workers and Overseas Filipinos

Act) considers as illegal recruiter even a licensee
or holder of authority who commits any of the
acts enumerated in section 6 thereof.
DISTINGUISH LICENSE FROM
AUTHORITY:
LICENSE AUTHORITY
A document issued by DOLE A document issued by DOLE

authorizing a person or entity to authorizing a person or association to
operate a Private Employment engage in recruitment and
Agency (Labor Code, Art. 13) placement activities as Private
Recruitment Entity (Labor Code 13)
A document issued by the DOLE
authorizing the officers, personnel,
agents or representatives of a
licensed recruitment/ manning
agency to conduct recruitment and
placement activities in a place
stated in the license or in a specified
place.
Section 1(b) Rule II, Omnibus Rules
and Regulations Implementing the
Migrant Workers and Overseas
Filipino Act of 1995 as Amended by
R.A. NO. 1002
DISTINGUISH BETWEEN PRIVATE
EMPLOYMENT AGENCY AND
PRIVATE RECRUITMENT ENTITY
Right to charge fee
PRIVATE EMPLOYMENT PRIVATE RECRUITMENT

AGENCY ENTITY
Charges fee directly Does not charge any
or indirectly, from the fee either directly or
workers or from the indirectly from the
employers or from workers or employers
both to which they would
be deployed.
Persons whom they are allowed to recruit
PRIVATE PRIVATE
EMPLOYMENT RECRUITMENT
AGENCY ENTITY
Only for overseas Both local and
placement or overseas
deployment deployment
Source of Authority
PRIVATE PRIVATE
EMPLOYMENT RECRUITMENT
AGENCY ENTITY
License Authority
WHAT ARE THE ESSENTIAL
ELEMENTS OF ILLEGAL
RECRUITMENT?
The offender is a licensee/ non-licensee or
holder/non-holder of authority engaged in the
recruitment and placement of workers; and
The offender undertakes either any recruitment

activities defined under Art. 13 (b), or any
prohibited practices enumerated under Article
34 of Labor Code.
WHAT ARE THE PROHIBITED
PRACTICES UNDER THE LABOR
CODE?
To charge or accept, directly or indirectly, any amount greater than that
specified in the schedule of allowable fees prescribed by the secretary of
Labor, or to make a worker pay any amount greater that that actually
received by him as a loan or advance;
To furnish or publish any false notice or information or document in relation

to recruitment or employment;
To give any false notice, testimony, information or document or commit any

of misrepresentation or the purpose of securing a license or authority under
this Code;
To induce or attempt to induce a worker already employed to quit his

employment in order to offer him to another unless the transfer is designed
to liberate the worker from oppressive terms and conditions of employment;
PROHIBITED PRACTICES
CONTINUED
To influence or to attempt to influence any person or entity not to
employ any worker who has not applied for employment through his
agency;
To engage in the recruitment or placement of workers in jobs harmful

to public health or morality or to the dignity of the Republic Philippines
To obstruct or attempt to obstruct inspection by the Secretary of Labor

of his duly authorized representatives;
To fail to file reports on the status of employment, placement

vacancies, remittances of foreign exchange earnings, separation from
jobs, departures and such other matters or information as may be
required by the Secretary of Labor;
PROHIBITED PRACTICES
CONTINUED
To substitute or alter employment contracts approved by the Department
of Labor
from the time of actual signing thereof by the parties up to and including the
periods of expiration of the same without the approval of the Secretary of Labor;
To become an officer or member of the Board of any corporation

engaged in travel agency
or to be engaged directly or indirectly in the management of a travel agency;
and
To withhold or deny travel documents from applicant workers before

departure for monetary or financial considerations other that those
authorized under this Code and its implementing rules and regulations.
DOES ARTICLE 34 OF THE LABOR
CODE PROVIDE AN EXCLUSIVE
LIST?
NO
Under Section 6 of Republic Act 8042, as amended
by Republic Act 10022 (March 8, 2010),
known as the Migrant Workers and Overseas Filipino
Act of 1995;
DOES ARTICLE 34 OF THE LABOR
CODE PROVIDE AN EXCLUSIVE
LIST?
It shall likewise include the following acts,
whether committed by any person, whether a
non-licensee, non-holder, licensee or holder of
authority:
(l) Failure to actually deploy a contracted worker without valid reason as determined by the
Department of Labor and Employment;
(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place
without the workers fault. Illegal recruitment when committed by a syndicate or in large scale
shall be considered an offense involving economic sabotage
Who are the subjects covered
in Article 34 as expanded by
section 6 of RA8042?
Any individual OR entity (non-licensee, non-
holder, licensee or holder of authority)
Any licensee
Any holder of authority

What acts of furnishing and
publishing are considered to be
prohibited practices under
Article 34(B)?
Act of furnishing fake employment documents to a worker
Act of publishing false notice or information in relation to

recruitment or employment
Is the falsity of the notice or information
published material in prosecution for
illegal recruitment for unauthorized
advertisement?
NO
Article 38 provides that any recruitment activities to be undertaken
by non-licensees or non-holders of authority shall be deemed illegal
and punishable.
Should the prohibited acts be
consummated to be
punishable for illegal
recruitment?
NOT ALL.
In subparagraphs D,E, and G, mere attempt is
punishable
What is the difference between the
scope of prohibition under Article 34 (J)
and under Article 26?
Article 26 Article 34
The prohibition is against (j) the prohibition is

the recruitment of travel against any officer or
agencies and sales member of the Board of
agencies of airline any corporation
companies engaged in travel
agency or to be
engaged directly or
indirectly in the
management of travel
agency
What are the elements of illegal
recruitment to be proved in
courts?
Absence of valid license or authority required by

law to enable one to lawfully engage in
recruitment and placement of workers; and
Undertaking of any activity within the meaning of

recruitment or placement ) under the Labor
Code (Delia D. Romero vs. People, G.R. No.
171644, November 23, 2011)
WHAT IS SIMPLE ILLEGAL
RECRUITMENT?
It is committed where a person:
A. Undertakes any recruitment activity

defined under Article 13 (b) or any
prohibited practice enumerated under
Articles 34 (as expanded by Section 6 of
RA 8042) and 38 of the Labor Code;
and
B. does not have a license or authority to
lawfully engage in the recruitment and
placement of workers
ILLEGAL
RECRUITMENT:
LARGE SCALE AND
SYNDICATED
What is illegal recruitment
in large scale?
It is deemed committed in large scale if committed against three(3)
or more persons individually or as a group
What is illegal recruitment committed by a syndicate?

- It is deemed committed by a syndicate if carried out by a group
of three (3) or more persons conspiring or confederating with one
another.
When is illegal recruitment considered as economic sabotage?

- The qualifying circumstances of large scale and syndicate make
such illegal recruitment an offense involving economic sabotage.
Preclusion on
Conviction
Will conviction under the Labor Code Preclude Conviction for
Estafa or Other crimes under other laws?
NO. Illegal recruitment is penalized under the Labor Code which is
a special law, and not under the Revised Penal Code (People v.
Duque, G.R. 100285, August 13, 1992).
It bears emphasis, however, that not all acts which constitute the
felony of Estafa under the Revised Penal Code necessarily establish
the crime of illegal recruitment under the Labor Code. Estafa is
wider in scope and covers deceits whether related or not related
to recruitment activities ( People v. Turda, G.R. Nos. 97044-46, July 6,
1994)
LIABILITIES: WHO ARE
LIABLE AND TO WHAT
EXTENT?
Liabilities:
Local Recruitment Agency
Foreign Employment
Joint and Several Liability.

The liability of the principal/employer and the recruitment/placement agency for any
and all claims under this section shall be joint and several.
This provisions shall be incorporated in the contract for overseas employment and shall be
a condition precedent for its approval.
The performance bond to be filed by the recruitment/placement agency, as provided by
law, shall be answerable for all money claims or damages that may be awarded to the
workers.
If the recruitment/placement agency is a juridical being, the corporate officers and
directors and partners as the case may be, shall themselves be jointly and solidarily liable
with the corporation or partnership for the aforesaid claims and damages. ( Sec. 10, R.A.
NO 8042 as amended by R.A. 10022)
LIABILITIES: WHO ARE LIABLE
AND TO WHAT EXTENT?
If the recruitment/ manning agency is a juridical
being, the corporate officers and directors or
partners, as the case may be, shall themselves
be jointly and severally liable with the
corporation or partnership for the aforesaid
claims and damages.
Such liabilities shall continue during the entire

period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in
foreign country or the said contract.
ADMINISTRATIVE AND
CRIMINAL LIABILITIES:
Is the administrative liability of licensee or Holder of
Authority separate and distinct from criminal liability for
illegal recruitment?
Yes, the institution of the criminal action is without

prejudice to any administrative action against the
licensee or holder of authority cognizable by the POEA
which could proceed independently of the criminal
action.
IMPUTED
KNOWLEDGE
What is the theory of
imputed knowledge?
The theory of imputed knowledge is a rule that

any information material to the transaction
either possessed by the agent at the time of
the transaction or acquired by him before its
completion, is deemed to be the knowledge
of the principal,
at least insofar as the transaction Is
concerned, even though the knowledge, in
fact, is not communicated.
What is meant by the
imputed knowledge?
IMPUTED KNOWLEDGE means the

knowledge attributed to a party
because of his position, or his
relationship with or responsibility for
another party.
Such knowledge is attributed for
the reason that the facts in issue
were open to discovery and it was
that persons duty to apprise him of
such facts.
PRE-TERMINATION OF
CONTRACT OF MIGRANT
WORKERS
The syllabus uses the term pre-termination in
describing the termination of employment of OFWs.
This is understandable in the light of the prevailing rule
that an OFWs employment contract is always for a
fixed term and thus, he can never acquire regularity
of employment.
Being fixed-term, any termination prior to its expiration
is more approximately to be considered and
denominated as pre-termination and not simply
termination of employment.
What are the various
forms of Pre-termination?
1. The OFW has requested for an early termination of
employment;
2. The OFW and his employer mutually agreed on an
early termination of employment;
3. The OFW has been discharged for just cause or
disciplinary reasons or authorized cause;
4. The OFW suffered injury or illness; or
5. The OFW has died.
OFWS CAN NEVER
ACQUIRE REGULAR
EMPLOYMENT
The prevailing rule is that OFWs are
contractual, not regular, employees.
In facts, they can never attain regularity of
employment. The reason for its holding that
OFWs cannot acquire regular employment is
the fact that their employment is governed by
the contracts they sign every time they are re-
hired and their employment is terminated
when the contract expires.
Their employment is contractually fixed for a
certain period of time (Santiago v. CF Sharp
Crew Management, G.R. No 162419, July 10,
2007)
RULES ON EMPLOYMENT
OF OFWS
A. OFWs deserve to be protected by our laws.
B. OFWs and their foreign employers may freely enter into a

contract of employment.
C. Party invoking the foreign law has the burden to prove it.
(processual presumption)
D. Due process
In the absence of proof of applicable foreign law, OFWs are
entitled to due process in accordance with Philippine Laws.
Due process in case of termination of employment of seafarers.
The twin requirements of notice and hearing; and other
provisions of the Constitution as well as the Labor Code, which
afford protection to labor, apply to Filipino employees whether
working within the Philippines or abroad. It is only in the
exceptional case of clear and existing danger to the safety of
the crew or vessel that the required notices are dispensed with;
but just the same, a complete report should be sent to the
manning agency, duly supported by substantial evidence of the
findings (Skippers Pacific, Inc. v. Mira, G.R. o. 144314, November
21, 2002)
DISMISSAL DUE TO
AUTHORIZED CAUSE BUT
WITHOUT DUE PROCESS
Award of Indemnity in the form of Nominal
Damages in case of dismissal of OFWS for just or
authorized cause but without due process.
The AGABON Doctrine of awarding indemnity in
the form of nominal damages in cases of valid
termination for just or authorized cause but
without procedural due process also applies to
termination of OFWs (Agabon v. NLRC, 2004; Jaka
Food Processing Corp v. Pacot, 2005)
AWARD OF MONETARY
CLAIM AND DAMAGES
TO OFWS
SEC 10, R.A. 8042-
Monetary claims arising out of an ER-EE
relationship
Actual, moral, exemplary and other
forms of damages applies only to cases
of illegal dismissal
Article 279 (remedies), reinstatement or
separation pay or backwages are not
available to OFW
ILLEGALLY DISMISSED OFWS
AND SALARIES
Are illegally dismissed OFWs entitled to all the salaries for the
entire UNEXPIRED portion of their employment contract?
An illegally dismissed OFW is NOW ENTITLED to all the salaries for the
entire unexpired portion of their employment contracts,
irrespective of the stipulated term or duration thereof (Serrano v.
Gallant, G.R. NO 167614, March 24, 2009)
The Serrano ruling declared the qualification- or for three months
for every year of the unexpired term, whichever is less in par. 5 sec
10 of RA 8042 null and unconstitutionql for being discriminatory and
violative of the equal protection of the law clause.
The court concluded that the subject clause contains a suspect
classification in that, in the computation of the monetary benefits
of fixed term employees who are illegally discharged, it imposes a
3-month cap on the claim of OFWs with an unexpired portion of
one year or more in their contracts but none on the claims of
other OFWS or local workers with a fixed-term employment. The
subject clause singles out one classification of OFWs and burdens
it with a peculiar disadvantage. Consequent to the Serrano ruling,
an illegally dismissed OFW is now entitled to all the salaries for the
entire unexpired portion of their employment contracts,
irrespective of the stipulated term or duration thereof. Resultantly,
all past decisions subjecting the monetary award to the afore
mentioned qualifying clause no longer apply (Serrano v. Gallant,
G.R. No. 167614, 200)
Claims for disability and
death benefits
The Labor Arbiters have jurisdiction over the claims for disability,
death and other benefits of the OFWs, have jurisdiction to hear
and decide the claims. They have jurisdiction even if filed by the
heirs of the deceased OFW. The heirs of the deceased OFW
have the personality to file the claim for death compensation,
reimbursement of medical expenses damages and attorneys
fees before the Labor Arbiter of the NLRC
(Medline Management, Inc. v. Roslinda, G.R. No. 168715, 2010)
Claims for Disability
Requisites:
a) Injury or illness is work related
b) It existed during the term of the seafarers employment

contract
The unqualified phrase during the term of employment

covers all injury or illness occurring during the lifetime of the
contract. The injury or illness need not be shown to be work
related. The important factor to consider is that there must be a
showing that the injury or illness and disability occurred during
the effectivity of the employment contract. ( PTC v. Nazam
G.R. NO. 190804, Oct. 10, 2010)
Occupational Diseases
Requisites:
1. Seafarers work involves the risk described.
2. Disease was the result of the seafarers exposure

to the risk described.
3. Disease was contracted within a period of exposure and

under such factors necessary to contract it
4. No notorious negligence on the part of seafarer (Vetyard

Terminals & Shipping Service, Inc., v. Suarez, G.R. No. 199344,
March 05, 2014)
Death Benefits
(POEA-Sec, 2010
Memorandum Circular )
1. Work related, ER shall pay his beneficiaries
= US $50,000
additional amount of US $ 7,000 to each child
under age 21 but not exceeding 4 children
exchange rate prevailing during the time of payment.
2. Caused by Warlike, sailing within a declared war/war risk

= double
ER shall take war zone insurance coverage
3. Benefits above are separate and distinct from and will be in

addition to whatever benefits the seafarer is entitled under the
Philippine Laws (SSS, OWWA, ECC, PHIC and HDMF/Pagibig fund)
Death Benefits
4) Other liabilities, work related injury or illness:
Outstanding obligation due under the seafarers contract
Transport the remains and personal effects, at ERs expense

except if death occurred in a port where local govt. laws do
not permit it. If it occurs at sea, the disposition shall be
handled in accordance with the masters best judgment.
Master shall communicate with the manning agency.
Burial expenses = Philippine currency equivalent to US$1,000

prevailing during the time of payment
Entities authorized to
engage in Recruitment and
Placement of Overseas:
1. Public employment offices
2. POEA
3. Private recruitment Entities (PRE)
4. Private employment agencies (PEA)
5. Shipping or manning agencies or representatives
6. Such other persons or entities as may be authorized by the

DOLE secretary
7. Construction contractors
What are the Qualifications
for a Valid LICENSE of R&P
for Overseas workers?
Only those who possess the ff may be permitted:
1) Filipino citizen,
partnership or corporation at least 75% of Authorized capital
stock of which is owned and controlled by Filipino citizens;
2) Single Proprietorship/ Partnership= minimum capitalization of

2M
Corporation = minimum paid-up capital of 2M
provided, those with existing licenses shall within 4 yrs from

effectivity hereof, increase their capitalization or paid-up capital,
as the case may be, to 2M at the rate of 250k every year.
What are the
DISQUALIFICATIONS?
1. Travel Agencies, Sales agencies of airline companies
2. Officers or members of the Board of any corporation or

members in a partnership, engaged in the business of a
travel agency;
3. Corporations and partnerships when any of their officers,

membe s of the board or partners is also an officer, members
of the board or partners of a corporation or partnership
engaged in the business of a travel agency
DIRECT HIRING
What is direct hiring?
> Process of directly hiring workers by employers for

overseas employment
Is it allowed?
> Generally, NOT allowed.
Art. 18 except through the Boards and entities

authorized by the DOLE.
Exceptions to the Ban on
DIRECT HIRING
Those authorized by the DOLE Secretary and processed by
the POEA including:
1. Hired by members of the diplomatic corps;
2. Hired by Intl organizations
3. Name-hires upon submission of the ff. documents:
>employment contract
> valid passport
> employment visa or work permit, or equivalent document
> certificate of medical fitness
> certificate of attendance
Does the act of an entity in
interviewing applicants for
employment, prior to accreditation
amount to illegal recruitment and
direct-hiring?
Yes, direct hiring by employers of Filipino workers for overseas
employment is banned; they can only do so through, among
others, licensed private recruitment and shipping/ manning
agencies.
Prior to approval of the transfer of accreditation, no recruitment or

deployment may be made by the principal by itself or through the
would-be transferee manning agency, or by the latter, as this
would constitute illegal recruitment by a non-holder of authority.
the conduct of preparatory interviews is a
recruitment activity, and the fact that C.F. Sharp
did not receive any payment during the
interviews is of no moment. From the language of
Article 13 (b) the act of recruitment may be for
profit or not. Notably, it is the lack of necessary
license or authority, not the fact of payment tat
renders the recruitment activity of LCL unlawful (
C.F. Sharp Crew Management, Inc. v. Hon. Sec
Jose M. Espanol, G.R. No. 155903)
ENFORCEMENT AND
REGULATION
Suspension and
Cancellation of License or
Authority
JURISDICTION
Q: Which agency has the authority to cancel or suspend a
recruitment firms license or authority?
POEA administrator or the Sec. of Labor
A: DOLE SECRETARY AND POEA Administrator

have CONCURRENT jurisdiction to suspend or cancel a
license or authority
( Eastern Assurance and Surety Corp. v Sec of Labor,
G.R. No, L79436-50, January 17, 1990)
What is the legal basis for said
concurrent jurisdiction?
Answer:
Article 35- Suspension and/or Cancellation of License or

Authority
- The Secretary of labor shall have the power to suspend

or cancel any any license or authority to recruit employees for
overseas employment for violation of rules and regulations issued
by the Ministry of Labor (now DOLE) the Overseas Employment
Development Board, or for violation of the provisions of this and
other applicable laws, General Orders and Letters of Instruction.
Art. 36 provides that the Secretary of Labor, aside from the express
authority of jurisdiction under Art 35, has the power to promulgate
rules and regulations to carry out the objectives and implement
the provisions governing recruitment and placement activities.
Pursuant to this rule-making power, the Implementing Rules
pertaining to OVERSEAS employment was promulgated by the
DOLE and thus the POEA was given by the DOLE under Sec. 1,
Rule II Book VI the authority on its own initiative or upon complaint
to conduct necessary proceedings for the suspension or
cancellation of the license or authority of recruitment and
placement entities (Eastern Assurance and Surety Corp. v. Sec of
Labor, G.R. No. L-79436-50, January 17, 1990)
Q: What is the jurisdiction of
the POEA over recruitment
violations and related cases
The POEA has original and exclusive jurisdiction to hear and
decide:
a) All cases which are administrative in character, involving or

arising out of violation of rules and regulations relating to
licensing and registration of recruitment and employment
agencies, entities, including refund of fees collected from
workers and violation of the conditions for the issuance of
license to recruit workers.
b) Disciplinary Action cases and other special cases which are

administrative in character, involving employers, principals,
contracting partners and Filipino migrant workers.
Q: What are the classes of
cases NOT falling within the
jurisdiction of the POEA?
1. Money claims cases of OFWs arising from ER-EE.
2. Quasi- delict or tort cases.
3. Enforcement of foreign judgment.
4. Local Employment
Q: X, a seaman who was sent home prematurely
according to his employment contract by his employer,
files with POEA a complaint for recovery of his
unrealized salary under the terms if his contract. Should
the POEA take cognizance of the complaint by X?
A: NO, the POEA should not take cognizance of the
complaint.
The jurisdiction over Xs money claim, arising out of ER-EE

relationship does not lie with POEA. The case should have
been filed with the LABOR ARBITER in accordance with
Section 10 of R.A. 8042, as amended.
Q: Y, an OFW, has engaged the services of ABC Recruitment
Agency. In view thereof, Y paid ABC P25,000.00 as
placement fee. ABC failed to deploy Y according to the
terms of the contract. Y files with the POEA a complaint for
recovery of the amount he paid with damages. Should the
POEA take cognizance of the money claim?
A: YES, the POEA should take cognizance of the money
claim filed by Y
The POEA has jurisdiction over the money claim by Y, since

the same did not arise from ER-EE relationship. The money
claim pertains to recruitment and placement activity of ABC
Recruitment Agency, hence, within the POEAs jurisdiction.
REGULATORY AND VISITORIAL POWERS OF
DOLE SEC. pertaining the Recruitment &
Placement of workers for local and overseas
employment
Q: What is the legal basis of the DOLE Secretarys exercise of
regulatory power with regard to the recruitment and
placement of workers whether it be local or overseas
employment?
A: Art. 36 of the Labor Code:

REGULATORY POWER- The Sec. of Labor shall have the
power to restrict and regulate the recruitment and placement
activities of all agencies within the coverage of this Title and is
hereby authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement
provisions of this title.
Q: What is the legal basis of the DOLE Secretarys exercise
of VISITORIAL POWER WITH REGARD TO THE RECRUTIMENT
AND PLACEMENT of workers whether it be local or overseas
employment?
ANSWER:
ART. 37 OF THE LABOR CODE

VISITORIAL POWER The Sec. of Labor or his duly
authorized representatives may at any time,
inspect the premises, books of accounts and
records of any person or entity covered by this
Title, require it to submit reports regularly on
prescribed forms and act on violation of any
provisions of this Title.
Distinguish Visitorial Power of
the Sec. of Labor under:
1. Art. 37 (Visitorial Power)
2. Art 128 ( Visitorial and Enforcement Power)
3. Article 274 (Visitorial Power)
The Visitorial power of the DOLE Sec. under
Art 37 is with respect to recruitment and placement of workers
for local and overseas.
While in Art. 128, the visitorial power of the DOLE Sec. is with
respect to the determination of any labor standards violation,
wage orders, rules and regulations (Peoples Broadcasting
System vs. Sec. of Labor, March 6, 2012)
Article 274, on the other hand dwells on the visitorial power of

DOLE Sec to inquire into the financial activities of legitimate
labor organizations.
RULE ON REMITTANCE OF
FOREIGN EXCHANGE
EARNINGS
Question
What is the nature of the provision requiring remittance of
foreign exchange earnings under Art. 22 of the Labor Code?
Answer:
It is MANDATORY.
Art 22: Mandatory Remittance of Foreign Exchange Earnings-
It shall be mandatory for all Filipino workers abroad to remit a
portion of their foreign exchange earnings to their families,
dependents, and/or beneficiaries in the country in
accordance with rules and regulations prescribed by the Sec.
of Labor.
What are the effects of Non-
Compliance with the mandatory
remittance requirement?
Effects upon the employer:
Non-issuance of accreditation
To be excluded from the overseas employment program
Effects upon the recruitment agency
Non- issuance of license or authority
Disapproval and denial of renewal of contracts of

employment and service agreements
Serves as a ground for cancellation of authority

Effects upon OFW
Suspension or exclusion from the list of eligible workers
for overseas employment
In case of subsequent exclusions, repatriation at his own

expense or at the expense of the ER
DFA shall refuse to issue, renew or extend the OFWs passport
(Rules IV and V, Rules and Regulations Implementing EO No. 857)

Who are exempted from
mandatory foreign
exchange remittance?
1. Filipino servicemen working in US Military installations
2. Where the workers immediate family members,

dependents or beneficiaries are residing with him abroad;
and
3. Immigrants and Filipino professionals and employees

working with united nations agencies or specialized bodies
Resolution No. 1-83, Inter agency Committee for

Implementation of EO 857
LABOR
STANDARDS
Labor Standards and Social Legislations - Atty. Peter Joey B. Usita 25/07/2017
Conditions of
Employment
Who are
COVERED?
Employees in all
establishments,
whether operated for
profit or not, are
covered by the law on
labor standards.
Who are EXCLUDED
from the coverage?
(GoMaFiFaDoR)
Government Employees
Managerial Employees or Staff
Outside or Field personnel
Members of the family of the employer
Domestic servants and persons in the personal
service of another
Workers paid by result
What is the NORMAL
HOURS OF WORK PER
DAY?
The total number of working

hours per day shall not
exceed 8 hours.
Are there
EXCEPTIONS?
YES.
a.) Reduction of 8- hour working day
by employer
Employer, in the lawful exercise of its
prerogative, is not prohibited from
reducing such 8 hour period
PROVIDED that there be no
corresponding reduction on the
Employees wage or salary
equivalent to the said 8 hour work day.
Are there
EXCEPTIONS?
YES.
b.) Broken hours
As may be required by peculiar
circumstances of employment.
e.g. four (4) hour work in the morning and
four (4) hour work in the evening. In the
latter, it is not considered as OT since the
eight (8) hour period has not yet been
exceeded.
Are there
EXCEPTIONS?
YES.
c.) Staggered working time
Staggered working time in the
Executive Department in relation to
the other branches of government and
the private sector in Metro Manila
during Christmas Season.
Are there
EXCEPTIONS?
YES.
d.) Work in different shifts
In establishments where work is in
different shifts.
e.g. Call Center X has three (3) eight
(8) hour shifts in a work day
Are there
EXCEPTIONS?
YES.
e.) Reduction of workdays on account
of losses
When reduction in the number regular
working days is resorted to by the employer
to prevent serious losses due to causes
beyond his control.
Are there
EXCEPTIONS?
YES.
f.) Flexible work schedule under R.A. 8972
The Employer shall provide for a Flexible
working schedule for solo parents: Provided,
that the same shall not affect individual and
company productivity: Provided, further,
that any employer may request
exemption from the above requirements
from the DOLE on certain meritorious grounds.
What is the COMPRESSED
WORK WEEK (CWW)?
This refers to a situation where the workweek

is reduced to less that six (6) days but the
total number of work hours of forty eight (48)
hours per week remains. The normal work
day is increased to more than eight (8) hours
but not to exceed twelve (12) hours, without
overtime premium.
What are the
CONDITIONS for
CWW?
1.It is a result of an express and voluntary agreement
of majority of the covered employees or their duly
authorized representatives.
2. In firms using substances or operating under conditions where
there are airborne contaminants which may pose hazards to the
employees safety, there must be a certification that work
beyond eight (8) hours is within the threshold limits, as set in
Occupational Safety and Health Standards.
3. Employer shall notify the DOLE, through its Regional Office

having jurisdiction over the workplace, of the adoption of the
CWW scheme.
What are the
EFFECTS?
1.Work beyond eight (8) hours will NOT be
compensable by OT pay provided that the
number of hours worked per day SHALL NOT
EXCEED twelve (12) hours. It if EXCEEDS then it
shall be subject to OT pay.
2. Employees under CWW are entitled to meal
period of not less than sixty (60) minutes.
3. Such adoption shall IN NO CASE result in

diminution of existing benefits. Reversion to the
normal eight hours per workday shall not constitute
a diminution of benefits.
Application
Bisig Manggagawa sa Tryco vs. NLRC (G.R. No. 151309;
October 15, 2008)
The compressed workweek scheme was originally

conceived for establishments wishing to save on energy
costs, promote greater work efficiency and lower the rate
of employee absenteeism, among others...
Workers favour the scheme considering that it would
mean savings on the increasing cost of transportation
fares for at least one (1) day a week; savings on meal
and snack expenses; longer weekends, or an
additional 52 off-days a year, that can be devoted to
rest, leisure, family responsibilities, studies and other
personal matters, and that it will spare them for at least
another day in a week from certain inconveniences
that are the normal incidents of employment, such as
commuting to and from the workplace, travel time
spent, exposure to dust and motor vehicle fumes,
dressing up for work, etc.
Thus, under this scheme, the generally observed
workweek of six (6) days is shortened to five (5) days
but prolonging the work hours from Monday to
Friday without the employer being obliged for pay
overtime premium compensation for work
performed in excess of eight (8) hours on weekdays,
in exchange for the benefits above-cited that will
accrue to the employees.
What does HOURS
WORKED include?
a)All the time during which an employee is
required to be on duty or to be at a
prescribed workplace
b)All the time during which an employee is
suffered or permitted to work
Rest periods of short duration during work
hours shall be counted as hours worked.
What is the rule on
MEAL PERIOD?
Every employer is required to give
his employees not less than sixty
(60) minutes time-off for regular
meals.
Are there EXCEPTIONS?
YES.
a.) Shortening of meal time to not less than 20 minutes, when
compensable
- where work is non- manual work in nature or does not involve
strenuous physical exertion;
-where the establishment regularly operates for not less than
sixteen (16) hours a day;
- cases of actual or impending emergencies or when there is
urgent work to be performed on machineries, equipment or
installations to avoid serious losses which the employer would
otherwise suffer;
- where the work is necessary to prevent serious losses of
perishable goods.
Are there
EXCEPTIONS?
YES.
b.) Shortening of meal time to not less than 20 minutes,
when not compensable
The employees voluntarily agrees in writing to a
shortened meal period of thirty (30) minutes and are
willing to waive the overtime pay for such shortened
meal period;
There should be no diminution in the benefits of the
employees which they receive prior to the effectivity of
the shortened meal period;
The work of the employees does not involve strenuous
physical exertion and they are provided with adequate
coffee breaks in the morning and afternoon;
Arethere
EXCEPTIONS?
The value of the benefits derived by the employees from
the proposed work arrangement is equal or
commensurate with the compensation due them for the
shortened meal period as well as the overtime pay for 30
minutes as determined by the employees concerned;
The overtime pay of the employees will become due and

demandable if ever they are permitted or made to work
beyond 4:30 p.m.; and
The effectivity of the proposed working time arrangement

shall be for a temporary duration as determined by DOLE
Secretary.
What is PROHIBITED
by LAW?
That the meal time be shortened to less than

twenty (20) minutes and if so reduced, the
same SHALL NO LONGER BE CONSIDERED AS
MEAL TIME but merely as REST PERIOD or
COFFEE BREAK and becomes COMPENSABLE.
What is the rule on
WAITING TIME?
It is compensable if it is spent primarily for the
benefit of the employer and its business.
Conversely, if the time is spent primarily for the
benefit of the employee, the time is not
compensable.
In determining whether waiting time constitutes
hours worked, the amount of control the employer
has over the employee during the waiting time, and
whether the employee can effectively use that time
for his own purposes is material.
Is waiting time ON
DUTY compensable?
YES. Waiting time while on duty is included in
compensable time, especially when it is
unpredictable, or is of such short duration that the
employees cannot use the time effectively for their
own purposes.
In those instances, the employees are to be
compensated whether their work is on or off the
employers premises, even if the employees spend
the time engaging in such amusements as playing
cards, watching television or reading.
Is waiting time OFF
DUTY compensable?
NO. Based on U.S. jurisprudence, periods during
which an employee is completely relieved from
duty and which are long enough to enable him to
use the time effectively for his own purposes are not
hours worked.
Whether the time is off is truly sufficient to enable
employees to effectively use the time for their own
purposes is a factual issue dependent upon the
circumstances.
Is TRAVEL TIME
compensable?
Travel from home to work
GR: NO. An employee who travels from home before his regular
workday and returns to his home at the end of the workday is
engaged in ordinary home-to-work travel which is a normal
incident of employment. This is true whether he works at a fixed
location or at different jobsites.
EXCEPTION: YES. If an employee receives an emergency call

outside of his regular working hours and is required to travel to his
regular place of business or some other work site, all of the time
spent in such travel is considered working time.
Is TRAVEL TIME
compensable?
Travel that is all in the days work
YES. The time spent by an employee in travel as part of
his principal activity, such as travel from jobsite to
jobsite is compensable.
Where an employee is required to report at a meeting
place to receive instructions or to perform other work
there, or to pick up and carry tools, the travel from the
designated place to the workplace is part of the days
work and must be counted as hours worked regardless
of contract, custom or practice.
Is TRAVEL TIME
compensable?
Travel away from home
YES. Travel away from home is clearly working time when it cuts across
the employees workday. Travel that keeps the employee away from
home overnight is travel away from home. The employee is simply
substituting travel for other duties. The time is not only hours worked on
regular working days normal working hours but also during the
corresponding hours on non-working days.
Thus, if an employee regularly works from 9:00 a.m. to 5:00 p.m. from
Monday through Friday, the travel time during these hours is working
time. Regular meal period is not counted. As an enforcement policy,
the Department of Labor and Employment does not consider as
working time spent in travel away from home outside of regular
working hours as a passenger on an airplane, train, boat, bus or
automobile.
What is the NIGHT SHIFT
DIFFERENTIAL (NSD)?
Every employee shall be paid a night shift
differential of not less than ten (10%)
percent of his regular wage for each hour
of work performed between ten oclock in
the evening and six oclock in the morning.
Who are COVERED
under NSD?
GR: All employees are entitle to NSD
Exceptions:
1.Those excluded under Article 82
(GoMaFiFaDoR)
2.Employees of retail and service establishments
regularly employing not more than five (5)
workers.
What is
OVERTIME(OT)
WORK?
Work performed beyond eight

(8) hours a day.
What is the BASIS for
computation of OT pay?
The REGULAR BASIC WAGE meaning

CASH WAGE ONLY without any
deduction on account of facilities
provided by the employer.
Is OT WORK compensable? What
are the rates?
YES.
Work performed beyond eight (8) hours on a
regular work day
Additional compensation equivalent to his regular
wage plus at least twenty-five (25%) percent
thereof.
Work performed beyond eight (8) hours on a
holiday or rest day
Additional compensation equivalent to the rate of
the first eight (8) hours on a holiday or rest day plus at
least thirty (30%) thereof.
What are the
conditions to be
entitled to OT pay?
1.Entitlement to overtime pay must first be
established by sufficient proof;
2.Said overtime work was actually
performed.
What does the law
prescribe for part-time
work?
The Eight-Hour Labor law prescribes the
maximum but not the minimum. Therefore, part-
time work, or a days work of less than 8 hours is
not prohibited.
Contract for Piece of work:
Paid by results are not covered by the law on working conditions.
They are paid by results and not on the basis of time spent in
working. (e.g. overtime pay)
The emphasis is on the task itself, payment is not reckoned in

terms of nos. of units produced because one task may take
hours or even days to finish, but in terms of completion of work
(Art. 82- Azucena)
Gr: Not covered

Xpt: Control test. Determine if there is an ER-EE relationship
See Civil Code ( Law on contracts)

WAGES
12
What is WAGE?
9
It is the remuneration or earning paid to any employee,

however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time,
task, piece, or commission basis or other method of
calculating the same, which is payable by an employer
to an employee under a written or unwritten contract of
employment for work done or to be done or for services
rendered or to be rendered and includes the fair and
reasonable value, as determined by the Secretary of
Labor, of board, lodging, or other facilities customarily
furnished by the employer to the employee.
What is the NO WORK NO
PAY principle?
It is the rule governing the relation between labor and
capital, or management and employee.
GR: If the worker does not work, he is not entitled to
any wage or pay.
EXCEPTION: He is entitled to pay, even if he does not
work, when it was the employer who unduly prevented
him from working despite his ableness, willingness and
readiness to work; or when he is illegally locked out or
illegally suspended or illegally dismissed or otherwise
illegally prevented from working.
Is there any DIFFERENCE
between WAGE and
SALARY?
YES.
WAGE SALARY
It is used to characterize It is used to describe the
the compensation paid compensation for higher or
for manual skilled or superior level of
unskilled labor. employment.
It indicates pay for a It is suggestive of a larger

lower and less responsible and more permanent or
character of employment fixed compensation for more
important service. It implies a
position of office.
What is the
STATUTORY MINIMUM
WAGE RATE?
It refers to the lowest basic wage
rate fixed by law that an employer
can pay his workers.
What is the prevailing MINIMUM
WAGE RATES in the National
Capital Region (NCR)?
INDICATOR/SECT MINIMUM WAGE
OR RATES
CURRENT DAILY Non Agriculture PHP 481.00
MINIMUM WAGE
RATES
National Capital Plantation and Non PHP 444.00
Region (NCR) a/ Plantation
Per Wage Order Private Hospitals PHP 444.00
No. with Bed Capacity
NCR-19 b/ of 100 or less
(Effective: 4 April Retail/Service PHP 444.00
2015) Establishments
Employing 15
Workers or Less
Manufacturing PHP 444.00
Establishments
Regularly
Employing Less
than 10 Workers
What is the minimum
wage of WORKERS PAID
BY RESULT?
All workers paid by results, including those
who are paid on piecework, takay,
pakyaw or task basis, shall receive not
less than the prescribed wage rates per
eight (8) hours of work a day, or a
proportion thereof for working less than
eight (8) hours.
Minimum wage of
Apprentices
Not less than 75% of
applicable minimum wage
except if training is
required by the school or
training program or
requisite for the graduation
or board examination.
Minimum wage of
Learners
Not less than 75% of
applicable minimum wage
except for learners in
piecework, where salary
shall be paid in
accordance with the
minimum wage imposed.
Can there be 13
8
DEDUCTIONS from
WAGES?
GR: An employer, by himself or
through a representative, is
prohibited from making any
deductions from the wages of his
employees. The employer is not
allowed to make unnecessary
deductions without the knowledge
or authorization of the employees.
Can there be
DEDUCTIONS from
WAGES?
EXCEPTIONS:
Art. 113. Wage deduction. No employer, in his own

behalf or in behalf of any person, shall make any deduction
from the wages of his employees, except:
a)In cases where the worker is insured with his consent by the
employer, and the deduction is to recompense the employer
for the amount paid by him as premium on the insurance;
b)For union dues, in cased where the right of the worker or his
union to check-off has been recognized by the employer or
authorized in writing by the individual worker concerned; and
c)In cases where the employer is authorized by law or

regulations issued by the Secretary of Labor and Employment.
Art. 100 - Non diminution of
benefits
GR: Nothing in the Labor Code shall be construed to
eliminate or in anyway diminish supplements or other
employee benefits being enjoyed at the time the
promulgation of this code.
XPTS:
1. Correction of Error
2. Negotiated Benefits
3. Wage order compliance
4. Benefits of reimbursement basis
5. Reclassification of position
6. Contingent benefits of conditional bonus
7. Productivity incentives
Facilities v. Supplements
FACILITIES SUPPLEMENTS
As to nature: As to nature:
Items of expense necessary for Items which constitute extra

the laborers and his familys remunerations or special
existence and subsistence privileges or benefits given to
or received by the laborers
over and above their ordinary
earnings and wages.
As to deductibility: As to deductibility:
Part of the wage, DEDUCTIBLE Independent of the wage, NOT

WAGE DEDUCTIBLE
What is a WAGE
DISTORTION?
It is 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 the 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.
What are the ELEMENTS of
WAGE DISTORTION?
1.There must be an existing hierarchy of positions
with corresponding salary rates;
2.A significant change in the salary rate of a lower

pay class without a concomitant increase in the
salary rate of a higher one;
3.The elimination of the distinction between the

two levels;
4.The existence of the distortion in the same region

of the country.
What is RECTIFICATION of WAGE
DISTORTION?
Through Article 124 the law recognizes the
validity of negotiated wage increases to correct
wage distortions.
REST
PERIOD
Are employers required to
provide the employees a rest
day?
YES.
Employees are entitled to a rest period of not less

than twenty-four (24) consecutive hours after every
six (6) consecutive normal work days.
Who determines and schedules
the rest day of the employees?
It is the employer who determines and schedules
the weekly rest day of his employees.
However, the employer shall respect the

preference of the employees as to their weekly
rest day when such preference is based on
religious grounds.
Where, however, the choice of the employee as to his
rest day based on religious grounds will inevitably result
in serious prejudiced or obstruction to the operations
of the undertaking and the employer cannot normally
be expected to resort to other remedial measure, the
employer may so schedule the weekly rest day of his
choice for at least two (2) days in a month.
May an employee be
compelled to work on his
scheduled rest day?
YES, in the following cases:
a)Actual or impending emergencies caused by

serious accident, fire, flood, typhoon, earthquake,
epidemic or other disaster or calamity to prevent
loss of life and property, or imminent danger to
public safety;
b)Urgent work to be performed on the machinery,

equipment, or installation, to avoid serious loss
which the employer would otherwise suffer;
c)In the event of abnormal pressure of work due to

special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
d)To prevent loss or damage to perishable goods;
e)Where the nature of the work requires continuous

operations and the stoppage of work may result
in irreparable injury or loss to the employer;
f) Under other circumstances analogous or similar to

the foregoing as determined by the Secretary of
Labor.
What is the compensation
provided by law when an
employee works on his
scheduled rest day?
An employee shall be paid an additional
compensation of at least thirty percent (30%) of
his regular wage, which is called the premium
pay.
Computation:
Daily Rate x 130%
Note: An employee is entitled to premium pay for

work performed on Sunday only when it is his
established rest day.
What if the employee has no
regular workdays and no
regular rest days?
He shall be paid an additional compensation of
at least thirty percent (30%) of his regular wage
for work performed on Sundays and holidays.
HOLIDAY
PAY
Who are entitled to holiday
pay?
All employees are entitled to and covered by the law on holiday pay,
except:
a)Those of the government and any of the political subdivisions, including

GOCCs
b)Those of retail and service establishments regularly employing less than

ten (10) workers
c)Domestic helpers and persons in the personal service of another
d)Managerial employees
e)Field personnel and other employees whose time and performance is

unsupervised by the employer including those who are engaged on task
or contract basis, purely commission basis, or those who are paid a fixed
amount for performing work irrespective of the time consumed in the
performance thereof.
What is the importance of
knowing the different classes of
holiday?
There are different rules governing the compensation of
employees for the various classes of holiday:
Generally,
Regular Holidays It is an exception to the no work, no
pay principle, and the employee is entitled to additional
compensation
Special Days no work, no pay principle, and the
employee is still entitled to additional compensation if he
worked
Special Working Holidays No additional compensation
What are the days considered
holidays by law?
REGULAR HOLIDAYS
Independence Day
New Years Day
National Heroes Day
Maundy Thursday
Bonifacio Day
Good Friday
Christmas Day
Eidul Fitr
Rizal Day
Araw ng Kagitingan
Eidul Adha
Labor Day
SPECIAL DAYS
All Saints Day
Last Day of the Year
SPECIAL WORKING
HOLIDAY
What are the rules governing
the compensation for regular
holidays?
If the employee did not work, he shall pay his
employees their regular daily wage.
Computation: Daily Rate + COLA
If the employee worked, he shall be paid at least
two hundred percent of his regular daily wage.
Computation: (Daily Rate + COLA) X 200%
If the employee worked and the holiday falls on
the scheduled rest day, he shall be entitled to an
additional premium pay of at least 30% of his
regular holiday rate of 200% based on his regular
wage rate. Computation: [(Daily Rate + COLA) x
200%} + [30% x (Daily Rate x 200%)]
If the employee worked in excess of eight hours,
he shall be paid an additional compensation for
the overtime work equivalent to his rate for the
first eight hours on such holiday work plus at least
30% thereof. Computation: [(Hourly rate of the
basic daily wage x 200% x 130% x number of hours
worked]
If the employee worked in excess of eight hours,

and the holiday falls on the scheduled rest day,
he shall be paid an additional compensation for
the overtime work to his regular holiday rest day
for the first 8 hours plus 30% thereof. Computation:
[Hourly rate of the basic daily wage x 200% x 130%
x 130% x number of hours worked]
Bar Exam Question
A, a worker at ABC Company, was on leave with
pay on March 31, 2010. he reported for work on
April 1 and 2, Maundy Thursday and Good Friday,
respectively, both regular holidays. Is A entitled to
holiday for the two successive holidays? Explain.
YES. Under the Rules Implementing Labor Code
(Section 10, Rule IV, Book III), where there are two
successive holidays, an employee may not be
paid for both holidays if he absents himself from
work on the day immediately preceding the first
holiday, unless he works on the first holiday, in
which case he is entitled to his holiday pay on the
second holiday.
In the case at bar, he is entitled to holiday pay,

since he worked on the first holiday.
Furthermore, he did not absent himself because

the day immediately preceding the first holiday is
his scheduled leave.
How about those paid by results
or output, workers on takay or
pakyao basis?
The principal test to determine their entitlement is
whether the performance of their work is
supervised or unsupervised by their employer. If
supervised, they are entitled to holiday pay;
otherwise, they are not.
When entitled, the holiday pay shall not be less

than their average daily earnings for the last
seven actual working days preceding the regular
holiday: Provided, however, that in no case shall
the holiday pay be less than the applicable
statutory minimum wage rate.
How about the holiday pay of
seasonal workers?
They may not be paid the required holiday pay
during off-season where they are not at work.
Are seafarers entitled to
holiday pay?
Any hours of work or duty including Labor Day
hours of watchkeeping performed by
the seafarer on designated rest days Independence Day
and holidays shall be paid rest day or
holiday pay. The following shall be National Heroes Day
considered as holidays at sea and in
All Saints Day
port:
Bonifacio Day
New Years Day
Christmas Day
Maundy Thursday
Rizal Day
Good Friday
Araw ng Kagitingan

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Labor Law and

Article II, Section 10. The State shall promote social

Article II, Section 11. The State values the dignity of

Article II, Section 20. The State recognizes the

Article III, Section 1. No person shall be deprived of life, liberty, or

Article III, Section 4. No law shall be passed abridging the

Article III, Section 8. The right of the people, including those

Article III, Section 18.

(2)No involuntary servitude in any form shall exist except as a

ARTICLE XIII, Section 2. The promotion of social justice shall include

It shall guarantee the rights of all workers to self-organization,

.. The State shall promote the principle of shared responsibility

The State shall regulate the relations between workers and

ARTICLE XIII, Section 13. The State shall establish a special

Article 4. Construction in favor of labor. All doubts in the

Article 166. Policy. The State shall promote and develop a

It is the policy of the State:

To promote and emphasize the primacy of free collective

To promote free trade unionism as an instrument for the

To foster the free and voluntary organization of a strong and

To promote the enlightenment of workers concerning their

To provide an adequate administrative machinery for the

To ensure a stable but dynamic and just industrial peace; and

To ensure the participation of workers in decision and policy-

Note: Persons or entities in any manner offers for

Article 13(b) did not intend to impose a condition nor an

RA 8042 (Migrant Workers and Overseas Filipinos

A document issued by DOLE A document issued by DOLE

PRIVATE EMPLOYMENT PRIVATE RECRUITMENT

The offender undertakes either any recruitment

To furnish or publish any false notice or information or document in relation

To give any false notice, testimony, information or document or commit any

To induce or attempt to induce a worker already employed to quit his

To engage in the recruitment or placement of workers in jobs harmful

To obstruct or attempt to obstruct inspection by the Secretary of Labor

To fail to file reports on the status of employment, placement

To become an officer or member of the Board of any corporation

To withhold or deny travel documents from applicant workers before

Any holder of authority

Act of furnishing fake employment documents to a worker

Act of publishing false notice or information in relation to

The prohibition is against (j) the prohibition is

Absence of valid license or authority required by

Undertaking of any activity within the meaning of

A. Undertakes any recruitment activity

What is illegal recruitment committed by a syndicate?

When is illegal recruitment considered as economic sabotage?

Local Recruitment Agency

Joint and Several Liability.

Such liabilities shall continue during the entire

Yes, the institution of the criminal action is without

The theory of imputed knowledge is a rule that

IMPUTED KNOWLEDGE means the

B. OFWs and their foreign employers may freely enter into a

a) Injury or illness is work related

b) It existed during the term of the seafarers employment

The unqualified phrase during the term of employment

1. Seafarers work involves the risk described.

2. Disease was the result of the seafarers exposure