Labor Standards

Labor Standards

Employer-Employee Relationship

Contracting

Kinds of Employment

Statutory Benefits

----------------------------

Termination of Employment

Dispute Settlement

Atty. Marlon J. Manuel

Constitutional Provisions

Art. II. State Policies

Section 10. The State shall promote social

justice in all phases of national development.

Section 11. The State values the dignity of

every human person and guarantees full

respect for human rights.

Section 18. The State affirms labor as a primary

social economic force. It shall protect the

rights of workers and promote their welfare.


Art. III. Bill of Rights

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.

Section 16. All persons shall have the right to a

speedy disposition of their cases before all

judicial, quasi-judicial, or administrative

bodies.


Art. XIII. Social Justice and Human Rights

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.

Constitutional Provisions Art. XIII. Social Justice and Human Rights

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.

Basic Principles Article 211. Declaration of policy. A. It is the policy of

the State:

(a) 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;

(b) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development;

(c) To foster the free and voluntary organization of a strong and united labor movement;

(d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees;

Basic Principles

Article 211. Declaration of policy.

(e) To provide an adequate administrative

machinery for the expeditious settlement of

labor or industrial disputes;

(f) To ensure a stable but dynamic and just

industrial peace; and

(g) To ensure the participation of workers in

decision and policy-making processes

affecting their rights, duties and welfare.

Basic Principles

Article 211. Declaration of policy.

B. 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.

Basic Principles

ART. 275. Tripartism, Tripartite Conferences,

and Tripartite Industrial Peace Councils. (a) Tripartism in labor relations is hereby declared

a State policy. Towards this end, workers and

employers shall, as far as practicable, be

represented in decision and policy-making

bodies of the government.

As amended by R.A. 10395, AN ACT

STRENGTHENING TRIPARTISM, March 14, 2013

Basic Principles


and Tripartite Industrial Peace Councils. (b) The Secretary of Labor and Employment or his duly

authorized representatives may from time to time call a

national, regional, or industrial tripartite conference of

representatives of government, workers and

employers, and other interest groups as the case may

be, for the consideration and adoption of voluntary

codes of principles designed to promote industrial

peace based on social justice or to align labor

movement relations with established priorities in economic and social development. In calling such

conference, the Secretary of Labor and Employment may consult with accredited representatives of workers

and employers.

Basic Principles


and Tripartite Industrial Peace Councils.

(c) A National Tripartite Industrial Peace Council

(NTIPC) shall be established, headed by the

Secretary of Labor and Employment, with

twenty (20) representatives each from the labor and employers sectors to be designated by the President at regular intervals. For this purpose, a

sectoral nomination, selection, and recall

process shall be established by the DOLE in consultation with the sectors observing the

most representative organization criteria of ILO Convention No. 144.

Basic Principles


and Tripartite Industrial Peace Councils.

(c) x x x x x x x x x

Tripartite Industrial Peace Councils (TIPCs) at

the regional or industry level shall also be

established with representatives from

government, workers and employers to serve

as a continuing forum for tripartite advisement

and consultation in aid of streamlining the

role of government, empowering workers and employers organizations, enhancing their respective rights, attaining industrial

peace, and improving productivity.

Basic Principles

ART. 275. Tripartism, Tripartite Conferences, and

Tripartite Industrial Peace Councils.


The TIPCs shall have the following functions:

(1) Monitor the full implementation and

compliance of concerned sectors with the

provisions of all tripartite instruments, including

international conventions and declarations,

codes of conduct, and social accords;

(2) Participate in national, regional or industry-

specific tripartite conferences which the President

or the Secretary of Labor and Employment may

call from time to time;

Basic Principles





x x x x x x x x x

(3) Review existing labor, economic and social

policies and evaluate local and international

developments affecting them;

(4) Formulate, for submission to the President or to

Congress, tripartite views, recommendations and

proposals on labor, economic, and social

concerns, including the presentation of tripartite

positions on relevant bills pending in Congress;

Basic Principles





x x x x x x x x x

(5) Advise the Secretary of Labor and

Employment in the formulation or implementation

of policies and legislation affecting labor and

employment;

(6) Serve as a communication channel and a

mechanism for undertaking joint programs

among government, workers, employers and their

organizations toward enhancing labor-

management relations; and

Basic Principles





x x x x x x x x x

(7) Adopt its own program of activities and rules,

consistent with development objectives.

All TIPCs shall be an integral part of the

organizational structure of the NTIPC.

The operations of all TIPCs shall be funded from

the regular budget of the DOLE.

Labor Standards

Employer-Employee Relationship Contracting

Kinds of Employment

Statutory Benefits

----------------------------


Dispute Settlement

Employer-Employee

Relationship

By operation of law

Not by parties agreement

Not dependent on compensation

Not determined by Art. 280 standards

Art. 212 DEFINITIONS (e) "Employer" includes any person acting in the

interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer.

(f) "Employee" includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless this Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment.

Art. 280 is NOT the basis of ER-EE; BUT a test for REGULAR EMPLOYMENT

Article 280. Regular and casual employment. The provisions of written agreement to the

contrary notwithstanding and regardless of the

oral agreements of the parties, an

employment shall be deemed to be regular

where the employee has been engaged to

perform activities which are usually necessary

or desirable in the usual business or trade of

the employer X X X.

Control

Guidelines indicative of labor law control, should not merely relate to the mutually desirable result intended by the contractual relationship; they must have the nature of dictating the means or methods to be employed in attaining the result, or of fixing the methodology and of binding or restricting the party hired to the use of these means.

Tongko v. Manufacturers Life Insurance (GR 167622, June 29, 2010 & January 25, 2011)

Officer vs. Employee

A position must be expressly mentioned in the By-Laws in order to be considered as a corporate office. Thus, the creation of an office pursuant to or under a By-Law enabling provision is not enough to make a position a corporate office.

The criteria for distinguishing between corporate officers who may be ousted from office at will, on one hand, and ordinary corporate employees who may only be terminated for just cause, on the other hand, do not depend on the nature of the services performed, but on the manner of creation of the office.

Matling Industrial v. Coros, October 13, 2010

Talents

Production assistants,

drivers/cameramen, security guards, are

NOT talents

They are employees

Television and Production Exponents v. Servaa,

January 28, 2008

ABS-CBN Broadcasting Corp. v. Nazareno, Sept.

26, 2006

Fulache v. ABS-CBN, January 21, 2010

Dual Juridical Relationship

Under the boundary-hulog scheme incorporated in the Kasunduan, a dual juridical relationship was created between petitioner and respondent: that of employer-employee and vendor-vendee. The Kasunduan did not extinguish the employer-employee relationship of the parties extant before the execution of said deed.

Villamaria v. CA, April 19, 2006

Apprentice

Article 58. Definition of terms. As used in this Title:

(a) "Apprenticeship" means practical training on the job supplemented by related theoretical instruction.

(b) An "apprentice" is a worker who is covered by a written apprenticeship agreement with an individual employer or any of the entities recognized under this Chapter.

(c) An "apprenticeable occupation" means any trade, form of employment or occupation which requires more than three months of practical training on the job supplemented by related theoretical instruction.

(d) "Apprenticeship agreement" is an employment contract wherein the employer binds himself to train the apprentice and the apprentice in turn accepts the terms of training.

Apprentice

Article 72. Apprentices without compensation. The Secretary of Labor and Employment may

authorize the hiring of apprentices without

compensation whose training on the job is

required by the school or training program

curriculum or as a requisite for graduation or

board examination.

Learners

Article 73. Learners defined. Learners are persons hired as trainees in semi-skilled and

other industrial occupations which are non-

apprenticeable and which may be learned

through practical training on the job in a

relatively short period of time which shall not

exceed three months.

Women Workers

Article 138. Classification of certain women workers. Any woman who is permitted or suffered to work with or without compensation in any night club, cocktail lounge, massage clinic, bar or similar establishment, under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment, shall be considered as an employee of such establishments for purposes of labor and social legislation.

Labor Standards


Contracting Kinds of Employment

Statutory Benefits

----------------------------


Dispute Settlement

Contracting Section 3, D.O. 18-A, 2011

Contracting or Subcontracting refers to an arrangement whereby

a principal

agrees to put out or farm out

with a contractor

the performance or completion of a specific job, work or service

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.

Contracting Section 5. D.O. No. 18-A, 2011

Trilateral relationship in contracting arrangements;

Solidary liability. In legitimate contracting or subcontracting arrangement there exists:

(a) An employer-employee relationship between the contractor and the employees it engaged to perform the specific job, work or service being contracted; and

(b) A contractual relationship between the principal and the contractor as governed by the provisions of the Civil Code.

x x x x x x x x x

Trilateral Relationship

THREE (3) parties: PRINCIPAL

CONTRACTOR

EMPLOYEES

TWO (2) contracts Contract for a specific job, work or service

between the PRINCIPAL and the CONTRACTOR

Contract of employment between the CONTRACTOR and the EMPLOYEES

Regulating Contracting

Article 106. Contractor or sub-contractor. X X X

The Secretary of Labor and Employment may, by

appropriate regulations, restrict or prohibit the

contracting out of labor to protect the rights of

workers established under this Code. In so

prohibiting or restricting, he may make appropriate

distinctions between labor-only contracting and job

contracting as well as differentiations within these

types of contracting, and determine who among

the parties involved shall be considered the

employer for purposes of this Code, to prevent any

violation or circumvention of any provision of this

Code.

Regulating Contracting

Section 1. D.O. No. 18-A, 2011

Guiding principles. Contracting and

subcontracting arrangements are

expressly allowed by law and are subject

to regulations for the promotion of

employment and the observance of the

rights of workers to just and humane

conditions of work, security of tenure, self-

organization and collective bargaining.

Labor-only contracting as defined herein

shall be prohibited.

Labor-Only Contracting

Article 106. Contractor or sub-contractor. X X X X X X X X X

There is "labor-only" contracting where the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer.


Article 106. Contractor or sub-contractor. X X X X X X X X X

In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.

Legitimate Contracting Section 4. D.O. No. 18-A, 2011

Legitimate contracting or subcontracting. Contracting or subcontracting shall be legitimate if all the following circumstances concur:

(a) The contractor must be registered in accordance with these Rules 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;

(b) The contractor has substantial capital and/or investment; and

(c) The Service Agreement ensures compliance with all the rights and benefits under Labor Laws.


Section 6. D.O. No. 18-A, 2011 Labor-only contracting is hereby declared

prohibited. For this purpose, labor only contracting shall refer to an arrangement where:

(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


Section 6. D.O. No. 18-A, 2011 Labor-only contracting is hereby declared

prohibited. For this purpose, labor only contracting shall refer to an arrangement where:

(b) The contractor does not exercise the right to control over the performance of the work of the employee.

Substantial Capital


(l) Substantial capital refers to paid-up capital stocks/shares of at least Three Million

Pesos (P3,000,000.00) in the case of

corporations, partnerships and cooperatives;

in the case of single proprietorship, a net

worth of at least Three Million Pesos

(P3,000,000.00).

Possession by contractor of substantial capital NOT ENOUGH Mere compliance with substantial capital requirement

will not suffice for a contractor to be considered a legitimate contractor. If the workers supplied by the contractor work alongside the principals regular employees who are performing identical work, such is an indicium of labor-only contracting.

It is the totality of the facts and the surrounding circumstances of the case which is determinative of the parties relationship. Several factors may be considered, such as, whether the contractor was carrying on an independent business; the nature and extent of the work; the skill required; the term and duration of the relationship; the right to assign the performance of specified pieces of work; the control and supervision of the workers the power of the employer with respect to the hiring, firing and payment of the workers of the contractor; the control of the premises; the duty to supply premises, tools, appliances, materials and labor; and the mode, manner and terms of payment.

Coca-Cola Bottlers v. Agito, February 13, 2009

Right to Control


(i) Right to control refers to the right reserved to the person for whom the services of the contractual workers are performed, to determine not only the end to be achieved, but also the manner and means to be used in reaching that end.


Section 27. D.O. No. 18-A, 2011

A finding by competent authority of labor-only contracting shall render the principal jointly and severally liable with the contractor to the latters employees, in the same manner and extent that the principal is liable to the employees directly hired by him/her, as provided in Article 106 of the Labor Code, as amended.

A finding of commission of any of the prohibited activities in Section 7, or violation of either Section 8 or 9 hereof, shall render the principal the direct employer of the employees of the contractor or subcontrator, pursuant to Article 109 of the Labor Code, as amended.

Mandatory Registration

Section 14. Mandatory Registration and Registry of Legitimate Contractors. Consistent with the authority of the Secretary of Labor and Employment to restrict or prohibit the contracting out of labor to protect the rights of workers, it shall be mandatory for all persons or entities, including cooperatives, acting as contractors to register with the Regional Office of the Department of Labor and Employment (DOLE) where it principally operates.

Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting.

Registration A contractors Certificate of Registration is

not sufficient proof that it is an

independent contractor. A Certificate of

Registration issued by the Department of

Labor and Employment is not conclusive

evidence of such status.

The fact of registration simply prevents the

legal presumption of being a mere labor-

only contractor from arising.

Babas v. Lorenzo Shipping, December 15, 2010 (citing

San Miguel Corporation v. Semillano, Mondejas,

Remada, Alilgilan Multi-Purpose Coop (AMPCO), and Policarpio)

Liability for Wages Article 106. Contractor or sub-contractor.

Whenever an employer enters into a contract with

another person for the performance of the former's

work, the employees of the contractor and of the

latter's sub-contractor, if any, shall be paid in

accordance with the provisions of this Code.

In the event that the contractor or sub-contractor

fails to pay the wages of his employees in

accordance with this Code, the employer shall be

jointly and severally liable with his contractor or

sub-contractor to such employees to the extent of

the work performed under the contract, in the

same manner and extent that he is liable to

employees directly employed by him.

Solidary Liability

Article 109. Solidary liability. The provisions of existing laws to the contrary

notwithstanding, every employer or

indirect employer shall be held

responsible with his contractor or

subcontractor for any violation of any

provision of this Code. For purposes of

determining the extent of their civil liability

under this Chapter, they shall be

considered as direct employers.

Solidary Liability


Trilateral relationship in contracting arrangements; Solidary liability. In the event of any violation of any

provision of the Labor Code, including the failure to pay

wages, there exists a solidary liability on the part of the

principal and the contractor for purposes of enforcing

the provisions of the Labor Code and other social

legislation, to the extent of the work performed under

the employment contract.

However, the principal shall be deemed the direct

employer of the contractors employee in cases where there is a finding by a competent authority of labor-only contracting, or commission of prohibited activities as

provided in Section 7, or a violation of either Sections 8

or 9 hereof.

Prohibitions


Other Prohibitions. Notwithstanding Section 6 of these

Rules, the following are hereby declared prohibited

for being contrary to law or public policy:

A. Contracting out of jobs, works or services when

not done in good faith and not justified by the

exigencies of the business such as the following:

(1) Contracting out of jobs, works or services when

the same results in the termination or reduction of

regular employees and reduction of work hours or

reduction or splitting of the bargaining unit.

(2) Contracting out of work with a Cabo.

Prohibitions


Other Prohibitions.

(3) Taking undue advantage of the economic situation

or lack of bargaining strength of the contractors employees, or undermining their security of tenure or

basic rights, or circumventing the provisions of regular employment, in any of the following instances:

(i) Requiring them to perform functions which are currently

being performed by the regular employees of the principal;

and

(ii) Requiring them to sign, as a precondition to employment

or continued employment, an antedated resignation letter; a

blank payroll; a waiver of labor standards including minimum

wages and social or welfare benefits; or a quitclaim releasing

the principal, contractor or from any liability as to payment of

future claims.

Prohibitions


Other Prohibitions.

(4) Contracting out of a job, work or service through an

in-house agency.


(f) In-house agency refers to a contractor which is owned, managed, or controlled directly or indirectly by

the principal or one where the principal

owns/represents any share of stock, and which

operates solely or mainly for the principal.

Prohibitions


Other Prohibitions.

(5) Contracting out of a job, work or service that is

necessary or desirable or directly related to the

business or operation of the principal by reason of a

strike or lockout whether actual or imminent.

(6) Contracting out of a job, work or service being

performed by union members when such will interfere

with, restrain or coerce employees in the exercise of

their rights to self-organization as provided in Art. 248 (c) of the Labor Code, as amended.

Prohibitions


Other Prohibitions.

(7) Repeated hiring of employees under an

employment contract of short duration or under a

Service Agreement of short duration with the same

or different contractors, which circumvents the Labor Code provisions on Security of Tenure.

(8) Requiring employees under a subcontracting

arrangement to sign a contract fixing the period of

employment to a term shorter than the term of the Service Agreement, unless the contract is divisible into phases for which substantially different skills are

required and this is made known to the employee at

the time of engagement.

Prohibitions


Other Prohibitions.

(9) Refusal to provide a copy of the Service Agreement

and the employment contracts between the contractor

and the employees deployed to work in the bargaining

unit of the principals certified bargaining agent to the sole and exclusive bargaining agent (SEBA).

(10) Engaging or maintaining by the principal of

subcontracted employees in

excess of those provided for in the applicable Collective Bargaining Agreement (CBA) or as set by the Industry Tripartite

Council (ITC).

Prohibitions


Other Prohibitions.

B. Contracting out of jobs, works or services analogous

to the above when not done in good faith and not

justified by the exigencies of the business.

Rights of Employees


Rights of contractors employees. All contractors employees, whether deployed or assigned as reliever,

seasonal, week-ender, temporary, or promo jobbers,

shall be entitled to all the rights and privileges as

provided for in the Labor Code, as amended, to include

the following: (a) Safe and healthful working conditions;

(b) Labor standards such as but not limited to service incentive leave, rest days, overtime pay, holiday pay, 13th month pay, and separation pay as may be provided in the Service Agreement or under the Labor Code;

(c) Retirement benefits under the SSS or retirement plans of the contractor, if there is any;

(d) Social security and welfare benefits;

(e) Self-organization, collective bargaining and peaceful concerted activities; and

(f) Security of tenure.

Contracts


Required contracts under these Rules.

(a) Employment contract between the contractor and its

employee. Notwithstanding any oral or written stipulations to

the contrary, the contract between the contractor and its

employee shall be governed by the provisions of Articles 279

and 280 of the Labor Code, as amended. It shall include the

following terms and conditions:

i. The specific description of the job, work or service to be

performed by the employee;

ii. The place of work and terms and conditions of employment,

including a statement of the wage rate applicable to the

individual employee; and

iii. The term or duration of employment that must be co-

extensive with the Service Agreement or with the specific

phase of work for which the employee is engaged.

Coverage


Coverage. These Rules shall apply to all

parties of contracting and subcontracting

arrangements where employer-employee

relationships exist. It shall also apply to

cooperatives engaging in contracting or

subcontracting arrangements.

Contractors and subcontractors referred to in

these Rules are prohibited from engaging in

recruitment and placement activities as

defined in Article 13(b) of the Labor Code,

whether for local or overseas employment.

BPOs not covered by D.O. 18-A, 2011

Section 3, Department Circular No. 1-2012 (V)endor-vendee relationship for entire business

processes covered by the applicable provisions of the Civil Code on Contracts is excluded.

DO 18-A Series of 2011 contemplates generic or focused singular activity in one contract between the principal and the contractor (for example, janitorial, security, merchandising, specific production work) and does not contemplate information technology-enabled services involving an entire business processes (for example, business process outsourcing, hardware and/or software support, medical transcription, animation services, back office operations/support). X x x x x x x x x

Construction Industry not covered by registration mandated by D.O. 18-A

Section 4, Department Circular No. 1-2012

Thus, the DOLE, through its regional offices, shall not require contractors licensed by PCAB in the Construction Industry to register under D.O. 18-A, Series of 2011. Moreover, findings of violation/s on labor standards and occupational health and safety standards shall be coordinated with PCAB for its appropriate action, including the possible cancellation/suspension of the contractors license.

Labor Standards


Contracting

Kinds of Employment Statutory Benefits

----------------------------


Dispute Settlement

Regular Employee

Article 280. Regular and casual employment. The provisions of written agreement to the

contrary notwithstanding and regardless of the

oral agreements of the parties, an

employment shall be deemed to be regular

where the employee has been engaged to

perform activities which are usually necessary

or desirable in the usual business or trade of the employer X X X.

Security of Tenure

Article 279. Security of Tenure. In case of regular employment, the employer shall not

terminate the services of an employee except

for a just cause or when authorized by this Title.

X X X

Non-regular Employee Article 280. Regular and casual employment. The

provisions of written agreement to the contrary

notwithstanding and regardless of the oral agreements

of the parties, an employment shall be deemed to be

regular where the employee has been engaged to

perform activities which are usually necessary or

desirable in the usual business or trade of the employer

except where the employment has been fixed for

a specific project or undertaking, the completion

or termination of which has been determined at

the time of the engagement of the employee or

where the work or service to be performed is

seasonal in nature and the employment is for the

duration of the season.

Project Employment Project could refer to one or the other of at least

two (2) distinguishable types of activities. Firstly, a project could refer to a particular job or undertaking that is within the regular or usual business of the employer company, but which is distinct and separate, and identifiable as such, from the other undertakings of the company. Such job or undertaking begins and ends at determined or determinable times.

The term project could also refer to, secondly, a particular job or undertaking that is not within the regular business of the corporation. Such a job or undertaking must also be identifiably separate and distinct from the ordinary or regular business operations of the employer. The job or undertaking also begins and ends at determined or determinable times. (Leyte Geothermal Power Progressive Employees Union v. PNOC, March 30, 2011)

Project Employment

If there is continuous rehiring

for the same tasks or nature of tasks under different projects,

which tasks are vital, necessary and indispensable to the usual business or trade of the employer,

an employee who was initially hired as a project employee may eventually acquire regular status.

Casual Employee Article 280. Regular and casual employment.

X X X

An employment shall be deemed to be

casual if it is not covered by the preceding

paragraph: Provided, That any employee who

has rendered at least one year of service,

whether such service is continuous or broken,

shall be considered a regular employee with

respect to the activity in which he is

employed and his employment shall continue

while such activity exists.

Probationary Employee Article 281. Probationary employment.

Probationary employment shall not exceed six

months from the date the employee started

working, unless it is covered by an apprenticeship

agreement stipulating a longer period. The

services of an employee who has been engaged

on a probationary basis may be terminated for a

just cause or when he fails to qualify as a regular

employee in accordance with reasonable

standards made known by the employer to the

employee at the time of his engagement. An

employee who is allowed to work after a

probationary period shall be considered a regular

employee.

Labor Standards


Contracting

Kinds of Employment

Statutory Benefits ----------------------------


Dispute Settlement

Labor Standards


Contracting

Statutory Benefits

Wages

Wages

Article 97. Definitions.

X X X X X X X X X (f) "Wage" paid to any employee shall mean the

remuneration or earnings, 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 X X X

Wages Article 97. Definitions.

X X X X X X X X X

(f) "Wage" X X X includes the fair and

reasonable value, as determined by the Secretary of Labor and Employment, of board, lodging or other facilities customarily furnished by the employer to the employee. "Fair and reasonable value" shall not include any profit to the employer or to any person affiliated with the employer.

Facilities vs. Supplements

Facility for the benefit of the employee or his/her family

Supplement for the benefit of the employer

NOTE: THE NATURE OF THE ARTICLES OR SERVICES IS NOT THE DETERMINING FACTOR. A SERVICE MAY BE A FACILITY OR A SUPPLEMENT DEPENDING ON WHO IS PRIMARILY BENEFITTED.

Wage Fixing R.A. 6727 National Wages and Productivity

Commission (NWPC): national consultative and advisory body to

the President and Congress on matters relating to wages, incomes, and productivity

formulates policies and guidelines on wages, incomes and productivity improvement

DOES NOT set wage rates;

REVIEWS wage rates set by Regional Wage Boards;

Wage Fixing R.A. 6727

National Wages and Productivity Commission (NWPC):

COMPOSITION: Secretary of Labor

Director General of NEDA

2 members representing workers

2 members representing employers

Executive Director


Regional Tripartite Wages and Productivity Boards (RTWPB):

determines and fixes MINIMUM WAGE RATES applicable in their regions, provinces or industries

issues WAGE ORDERS


Regional Tripartite Wages and Productivity Boards (RTWPB):

COMPOSITION: Regional Director of DOLE

Regional Director of NEDA

Regional Director of DTI

2 members representing workers

2 members representing employers

Minimum Wage;

Not Across-the-board

Increase

Pursuant to its authority, the Regional Wage Boards may issue wage orders which set the daily minimum wage rates.

It has no authority to grant an across-the-board wage increase.

Metropolitan Bank and Trust Company v. NWPC, February 6, 2007

Two-Tiered Wage System

NWPC Guidelines No. 2, Series of 2012, Guidelines on

the Implementation of the Two-Tiered Wage System

Section 1. The Two-Tiered Wage System is an approach to minimum wage setting which aims to improve the coverage of minimum wages; promote worker and enterprise productivity and; address the negative effects of minimum wage policies.

Section 2. Definition of Terms e. Two-Tiered Wage System refers to a pay system

consisting of: 1. minimum wage; and 2. incentive pay based on productivity improvement and gainsharing

Wage Distortion

Article 124. x x x

Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by any Regional Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration.

Wage Distortion

Article 124. x x x

As used herein, a wage distortion shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation.

Form of Payment

Article 102. Forms of payment. No employer shall pay the wages of an employee by means of promisorry notes, vouchers, coupons, tokens, tickets, chits or any object other than legal tender, even when expressly requested by the employee.

Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity of this Code or is necessary because of special circumstances as specified in appropriate regulations to be issued by the Secretary of Labor and Employment or is stipulated in a collective bargaining agreement.

Form of Payment Article 105. Direct payment of wages. Wages shall be

paid directly to the workers to whom they are due, except:

(a) In cases of force majeure rendering such payments impossible or under other special circumstances to be determined by the Secretary of Labor and Employment in appropriate regulations, in which cases the worker may be paid through another person under written authority given by the worker for the purpose; or

(b) Where the worker has died, in which case the employer may pay the wages of the deceased worker to the heirs of the latter without the necessity of intestate proceedings. The claimant, if they are all of age, shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs, to the exclusion of all other persons. X X X X X X X X X

Time and Place of Payment Article 103. Time of payment. Wages shall be paid at

least once every two weeks or twice a month at intervals not exceeding sixteen days. If on account of force majeure or circumstances beyond the employer's control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. X X X X X X X X X

Article 104. Place of payment. Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages.

Prohibitions Article 112. Non-interference in disposal of

wages.

Article 113. Wage deduction.

Article 114. Deposits for loss or damage.

Article 116. Withholding of wages and kickbacks

Article 117. Deduction to ensure employment.

Article 118. Retaliatory measures.

Article 119. False reporting.

Withholding of Wages Management prerogative refers to the right

of an employer to regulate all aspects of employment, such as the freedom to prescribe work assignments, working methods, processes to be followed, regulation regarding transfer of employees, supervision of their work, lay-off and discipline, and dismissal and recall of work.

Although management prerogative refers to the right to regulate all aspects of employment, it cannot be understood to include the right to temporarily withhold salary/wages without the consent of the employee. To sanction such an interpretation would be contrary to Article 116 of the Labor Code.

SHS Perforated Materials v. Diaz, October 13,

2010

Payment by Results

Article 101. Payment by results. The Secretary of Labor and Employment shall regulate the payment of wages by results, including pakyao, piecework and other non-time work, in order to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in consultation with representatives of workers' and employers' organizations.

Worker Preference

Article 110. Worker preference in case of bankruptcy. In the event of bankruptcy or liquidation of an employer's business, his workers shall enjoy first preference as regards their unpaid wages and other monetary claims, any provision of law to the contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in full before the claims of the Government and other creditors may be paid.

Labor Standards


Contracting

Statutory Benefits Wages

Hours of Work

Hours of Work

Article 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight in a day.

Hours of Work Article 83. Normal hours of work. The normal hours of work

of any employee shall not exceed eight in a day.

Health personnel in cities or municipalities with a population of at least one million or in hospitals or clinics with a bed capacity of at least one hundred shall hold regular office hours for eight hours a day, for five days a week, or a total of forty hours a week, exclusive of time for meals, except where the exigencies of the service require that such personnel work for six days, forty-eight hours, in which case they shall be entitled to an additional compensation of at least 30 percent of their regular wage for work on the sixth day.

For purposes of this Article, "health personnel" shall include: resident physicians, nurses, nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.

Hours of Work Article 89. Emergency overtime work. Any employee may be

required by the employer to perform overtime work in any of the following cases:

(a) When the country is at war or when any other national or local emergency has been declared by Congress or the Chief Executive;

(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity;

(c) When there is urgent work to be performed on machines, installation or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;

(d) When the work is necessary to prevent loss or damage to perishable goods;

(e) Where the completion or continuation of the work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.

Hours Worked

Article 84. Hours worked. Hours worked shall include (a) all time during which an employee is required to be on duty or to be at a prescribed workplace, and (b) all time during which an employee is suffered or permitted to work.

Rest periods of short duration during working hours shall be counted as hours worked.

Meal Period

Article 85. Meal periods. Subject to such regulations as the Secretary of Labor and Employment may prescribe, it shall be the duty of every employer to give his employees not less than sixty minutes time-off for their regular meals.

Meal Period

GENERAL RULE: not less than 1 hour time-off for regular meals non-compensable

EXCEPTIONS: meal period of not less than 20 mins.:

Where the work is non-manual work in nature or does not involve strenuous physical exertion

Where the establishment regularly operates not less than 16 hours a day

In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer

Where the work is necessary to prevent serious loss of perishable good

Rest periods or coffee breaks

Overtime Pay

Article 87. Overtime work. Work may be performed beyond eight hours a day provided that the employee is paid for the overtime work an additional compensation equivalent to his regular wage plus at least twenty-five percent thereof.

Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate for the first eight hours on a holiday or rest day plus at least 30 percent thereof.

Overtime Pay

THUS:

25% OT PREMIUM for ORDINARY DAYS

30% OT PREMIUM for EXTRA-ORDINARY DAYS (Holidays/Special Days/Rest Days)

Overtime Pay

Article 90. Computation of additional compensation. For purposes of computing overtime and other additional remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer.

Offsetting Prohibited

Article 88. Undertime not offset by overtime. Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.

Night Shift Differential

Article 86. Night shift differential. Every employee shall be paid a night shift differential of not less than ten percent of his regular wage for each hour of work performed between ten o'clock in the evening and six o'clock in the morning.

Night Shift Differential

NIGHT SHIFT DIFFERENTIAL: 10%

TIME: 10 PM TO 6 AM

NOTE: Night Shift Differential is on top of OVERTIME PREMIUM

Hours of Work - Coverage

Article 82. Coverage. The provision of this Title shall apply to employees in all

establishments and undertakings, whether for

profit or not, but not to government

employees, managerial employees, field

personnel, members of the family of the

employer who are dependent on him for

support, domestic helpers, persons in the

personal service of another and workers who

are paid by results as determined by the

Secretary of Labor and Employment in

appropriate regulations.


Article 82. Coverage. X x x

As used herein, "managerial employees"

refers to those whose primary duty consists of

the management of the establishment in

which they are employed or of a department

or subdivision thereof, and to other officers or

members of the managerial staff.


Article 82. Coverage. X x x

"Field personnel" refers to non-agricultural

employees who regularly perform their duties

away from the principal place of business or

branch office of the employer and whose

actual hours of work in the field cannot be

determined with reasonable certainty.


FIELD PERSONNEL employees whose performance of their job is not supervised by the employer or its representative, as the work is performed outside the principal office of the employer

- time and performance is unsupervised by the employer

REPUBLIC ACT NO. 10151 AN ACT ALLOWING THE EMPLOYMENT OF NIGHT

WORKERS, THEREBY REPEALING ARTICLES 130 AND 131 OF THE LABOR CODE

Article 130. Night work prohibition. No woman, regardless of age, shall be employed or permitted or suffered to work, with or without compensation:

(a) In any industrial undertaking or branch thereof between ten o'clock at night and six o'clock in the morning of the following day;

(b) In any commercial or non-industrial undertaking or branch thereof, other than agricultural, between midnight and six o'clock in the morning of the following day; or

(c) In any agricultural undertaking at night time unless she is given a period of rest of not less than nine consecutive hours.

Article 131. Exceptions. The prohibition prescribed by the preceding Article shall not apply in any of the following cases: X X X X X X X X X

REPUBLIC ACT NO. 10151 Art. 154. Coverage. This chapter shall apply

to all persons, who shall be employed or permitted or suffered to work at night, except those employed in agriculture, stock raising, fishing, maritime transport and inland navigation, during a period of not less than seven (7) consecutive hours, including the interval from midnight to five oclock in the morning, to be determined by the Secretary of Labor and Employment, after consulting the workers representatives/labor organizations and employers.

Night worker means any employed person whose work requires performance of a substantial number of hours of night work which exceeds a specified limit. This limit shall be fixed by the Secretary of Labor after consulting the workers representatives/labor organizations and employers.

Women Night Workers Art. 158. Women Night Workers. Measures shall

be taken to ensure that an alternative to night work is available to women workers who would otherwise be called upon to perform such work:

(a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided between the time before and after childbirth;

(b) For additional periods, in respect of which a medical certificate is produced stating that said additional periods are necessary for the health of the mother or child: (1) During pregnancy; (2) During a specified time beyond the period, after

childbirth is fixed pursuant to subparagraph (a) above, the length of which shall be determined by the DOLE after consulting the labor organizations and employers.

Women Night Workers

Art. 158. Women Night Workers. X X X X X X

Pregnant women and nursing mothers may be

allowed to work at night only if a competent

physician, other than the company physician,

shall certify their fitness to render night work,

and specify, in the case of pregnant

employees, the period of the pregnancy that

they can safely work.

The measures referred to in this article may

include transfer to day work where this is

possible, the provision of social security benefits

or an extension of maternity leave.

Right to HEALTH ASSESSMENT Art. 155. Health Assessment, At their request,

workers shall have the right to undergo a health assessment without charge and to receive advice on how to reduce or avoid health problems associated with their work:

(a) Before taking up an assignment as a night worker;

(b) At regular intervals during such an assignment; and

(c) If they experience health problems during such an assignment which are not caused by factors other than the performance of night work.

With the exception of a finding of unfitness for night work, the findings of such assessments shall not be transmitted to others without the workers consent and shall not be used to their detriment.

Right to ADEQUATE FACILITIES

Art. 156. Mandatory Facilities. Suitable first-aid facilities shall be made available for workers

performing night work, including arrangements

where such workers, where necessary, can be

taken immediately to a place for appropriate

treatment. The employers are likewise required to

provide safe and healthful working conditions

and adequate or reasonable facilities such as

sleeping or resting quarters in the establishment

and transportation from the work premises to the

nearest point of their residence subject to

exceptions and guidelines to be provided by the

DOLE.

TRANSFER Art. 157. Transfer. Night workers who are

certified as unfit for night work, due to health

reasons, shall be transferred, whenever

practicable, to a similar job for which they are fit

to work.

If such transfer to a similar job is not practicable,

these workers shall be granted the same benefits

as other workers who are unable to work, or to

secure employment during such period.

A night worker certified as temporarily unfit for

night work shall be given the same protection

against dismissal or notice of dismissal as other

workers who are prevented from working for

reasons of health.

CONSULTATION

Art. 161. Night Work Schedules. Before introducing work schedules requiring the

services of night workers, the employer shall

consult the workers representatives/labor organizations concerned on the details of

such schedules and the forms of organization

of night work that are best adapted to the

establishment and its personnel, as well as on

the occupational health measures and social

services which are required. In establishments

employing night workers, consultation shall

take place regularly.

Labor Standards


Contracting


Hours of Work

Rest Period

Rest Day

Article 91. Right to weekly rest day. (a) It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than twenty-four consecutive hours after every six consecutive normal work days.

Schedule of Rest Day Article 91. Right to weekly rest day. (b) The

employer shall determine and schedule the weekly rest day of his employees, subject to collective agreement and to such rules and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds.

RULES: Where, however, the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice or obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial measures, the employer may so schedule the weekly rest day of his choice for at least two (2) days in a month.

Work on Rest Day Article 92. When employer may require work on a rest day.

The employer may require his employees to work on any day:

(a) In case of actual or impending emergencies caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property or imminent danger to public safety;

(b) In case of urgent work to be performed on the machinery, equipment or installation to avoid serious loss which the employer would otherwise suffer;

(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;

(d) To prevent loss or damage to perishable goods;

(e) Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and

(f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

Work on Rest Day - Payment Article 93. Compensation for rest day, Sunday or

holiday work. (a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least 30 percent of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.

(b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30 percent of his regular wage for work performed on Sundays and holidays.

X X X X X X X X X

Labor Standards


Contracting


Hours of Work

Rest Period

Holidays

Holiday Pay

Article 94. Right to holiday pay. (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishment regularly employing less than ten workers;

(b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate; and

X X X X X X X X X

Holiday Pay

RULE IV, SECTION 6. Absences. (a) All covered employees shall be entitled to the benefit provided herein when they are on leave of absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he has not worked on such regular holiday.

X X X X X X X X X

(c) Where the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the non-working day or rest day.

Holiday Pay

RULE IV, SECTION 10. Successive regular holidays. Where there are two (2) successive regular

holidays, like Holy Thursday and Good Friday, 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.

Work on Special Day Article 93. Compensation for rest day,

Sunday or holiday work. X X X X X X X X X

(c) Work performed on any special holiday shall be paid an additional compensation of at least 30 percent of the regular wage of the employee. Where such holiday work falls on the employee's scheduled rest day, he shall be entitled to an additional compensation of at least 50 percent of his regular wage.

Holiday and Special Day

HOLIDAY SPECIAL DAY

NO WORK, WITH

PAY

NO WORK, NO PAY

WITH WORK,

DOUBLE PAY

WITH WORK,

EXTRA PAY (30%

premium)

Holidays and Special Days HOLIDAY SPECIAL DAY

New Years Day

Maundy Thursday

Good Friday

Araw ng Kagitingan

Labor Day

Independence Day

National Heroes Day

Bonifacio Day

Christmas

Rizal Day

Eidl Fitr

Eidl Adha

Ninoy Aquino Day

All Saints Day

Last Day of the Year

Labor Standards


Contracting


Hours of Work

Rest Period

Holidays

Leaves

Service Incentive Leave

Article 95. Right to service incentive leave. (a) Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.

(b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay at least five days and those employed in establishments regularly employing less than ten employees or in establishments exempted from granting this benefit by the Secretary of Labor after considering the viability or financial condition of such establishment.

(c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action.


RULE V, SECTION 5. Treatment of benefit. The service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year.

Employees engaged on task or contract

basis or paid on purely commission basis

are not automatically exempted from the

grant of service incentive leave, unless,

they fall under the classification of field

personnel.

Serrano v. Severino Santos Transit, August 9, 2010


Maternity Leave

R.A. 1161, as amended by R.A. 8282

60 days for normal delivery

78 days for caesarian delivery

Married or unmarried

Paternity Leave

R.A. 8187

7 days

Married and cohabiting with the wife

Leave for VAWC victims

R.A. 9262

10 days for legal and medical concerns

As the need arises, at the option of the employee

VAWC victims (R.A. 9262)

VAWC refers to any act or a series of acts committed by any person against a woman

who is his wife, former wife, or against a

woman with whom the person has or had a

sexual or dating relationship, or with whom he

has a common child, or against her child

whether legitimate or illegitimate, within or

without the family abode, which will result in

or is likely to result in physical, sexual,

psychological harm or suffering, or economic

abuse including threats of such acts, battery,

assault, coercion, harassment or arbitrary

deprivation of liberty.

Special Leave for Women

R.A. 9710

2 months with pay

For gynecological disorders requiring surgical procedure

Parental (Solo Parent) Leave

Section 8, R.A. 8972

In addition to leave privileges under existing laws, parental leave of not more than seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least one (1) year.

Who Are Solo Parents?

A woman who gives birth as a result of

rape and other crimes against chastity

even without a final conviction of the

offender, provided, that the mother keeps

and raises the child


Parent left solo/alone due to the following:

death of spouse

detention or service of sentence of spouse for

at least one (1) year

physical and/or mental incapacity of spouse

legal or de facto separation from spouse for

at least one (1) year

declaration of nullity or annulment of

marriage as decreed by a court or by a

church

abandonment of spouse for at least one (1)

year


Unmarried mother/father who preferred to

keep and rear her/his child/children

Any other person who solely provides parental

care and support to a child or children

Any family member who assumes the

responsibility of head of family as a result of the

death, abandonment, disappearance or

prolonged absence of the parents or solo

parent

Labor Standards


Contracting


Hours of Work

Rest Period

Holidays

Leaves

13th Month Pay

13th Month Pay (P.D. 851)

All employers are required to pay their

rank and file employees thirteenth-month

pay, regardless of the nature of their

employment and irrespective of the

methods by which their wages are paid,

provided they worked for at least one (1)

month during a calendar year.

The thirteenth-month pay should be given

to the employees not later than

December 24 of every year.


The thirteenth-month pay shall not be less

than one-twelfth (1/12)of the total basic

salary earned by an employee in a

calendar year.


The "basic salary" of an employee for the

purpose of computing the thirteenth-

month pay shall include all remunerations

or earnings paid by his or her employer

for services rendered. It does not include

allowances and monetary benefits which

are not considered or integrated as part

of the regular or basic salary, such as the

cash equivalent of unused vacation and

sick leave credits, overtime, premium,

night shift differential and holiday pay,

and cost of living allowance (COLA).

Service Charges

Article 96. Service charges. All service charges collected by hotels, restaurants

and similar establishments shall be

distributed at the rate of 85 percent for all

covered employees and 15 percent for

management. The share of the

employees shall be equally distributed

among them. In case the service charge

is abolished, the share of the covered

employees shall be integrated into their

wages.

Labor Standards


Contracting

Kinds of Employment

Statutory Benefits

-----------------------------

Termination of Employment Dispute Settlement

Security of Tenure




X X X

Security of Tenure

RULE XXIII Section 1. Security of tenure. -(a) In

cases of regular employment, the employer

shall not terminate the services of an

employee except for just or authorized causes

as provided by law, and subject to the

requirements of due process.

X X X X X X

Security of Tenure RULE XXIII Section 1. Security of tenure.

X X X X X X

(b) The foregoing shall also apply in cases of

probationary employment; provided, however,

that in such cases, termination of employment

due to failure of the employee to qualify in

accordance with the standard of the employer

made known to the former at the time of

engagement may also be a ground for

termination of employment.

X X X X X X

Security of Tenure RULE XXIII Section 1. Security of tenure.

X X X X X X

(c) In cases of project employment or

employment covered by legitimate contracting or

subcontracting arrangements, no employee shall

be dismissed prior to the completion of the project

or phase thereof for which the employee was

engaged, or prior to the expiration of the contract

between the principal and contractor, unless the

dismissal is for just or authorized cause subject to

the requirements of due process or prior notice, or

is brought about by the completion of the phase of

the project or contract for which the employee

was engaged.

Just Causes Article 282. Termination by employer. An employer may

terminate an employment for any of the following just

causes:

(a) Serious misconduct or willful disobedience by the

employee of the lawful orders of his employer or

representative in connection with his work;

(b) Gross and habitual neglect by the employee of his

duties;

(c) Fraud or willful breach by the employee of the trust

reposed in him by his employer or duly authorized

representative;

(d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative;

and

(e) Other causes analogous to the foregoing.

Authorized Causes Article 283. Closure of establishment and

reduction of personnel. The employer may also terminate the employment of any

employee due to the installation of labor-

saving devices, redundancy, retrenchment to

prevent losses or the closing or cessation of

operation of the establishment or undertaking unless the closing is for the purpose of

circumventing the provisions of this title X X X

Procedure Just Causes Article 277. Miscellaneous provisions. X X X X X X

(b) Subject to the constitutional right of workers to

security of tenure and their right to be protected

against dismissal except for a just or authorized

cause and without prejudice to the requirement of

notice under Article 283 of this Code, the employer

shall furnish the workers whose employment is so

sought to be terminated a written notice

containing a statement of the cause for termination

and shall afford the latter ample opportunity to be

heard and to defend himself with the assistance of

his representative if he so desires in accordance

with company rules and regulations promulgated

pursuant to guidelines set by the Department of

Labor and Employment.

Procedure Just Causes RULE XXIII Section 2.Standards of due process; requirements

of notice. X X X I.For termination of employment based on just causes as defined in Article 282 of the Code:

(a) A written notice served on the employee specifying the

ground or grounds for termination, and giving to said

employee reasonable opportunity within which to explain

his side;

(b) A hearing or conference during which the employee

concerned, with the assistance of counsel if the employee

so desires, is given opportunity to respond to the charge,

present his evidence or rebut the evidence presented

against him; and

(c) A written notice of termination served on the employee indicating that upon due consideration of all the

circumstances, grounds have been established to justify his

termination.

Preventive Suspension RULE XXIII

Section 8.Preventive suspension. - The employer may

place the worker concerned under preventive suspension if his continued employment poses a serious

and imminent threat to the life or property of the

employer or of his co-workers.

Section9.Period of suspension. - No preventive

suspension shall last longer than thirty (30) days.The

employer shall thereafter reinstate the worker in his

former or in a substantially equivalent position or the

employer may extend the period of suspension provided

that during the period of extension, he pays the wages and other benefits due to the worker.In such case, the worker shall not be bound to reimburse the amount paid

to him during the extension if the employer decides, after

completion of the hearing, to dismiss the worker.

Procedure Authorized Causes Article 283. Closure of establishment and reduction

of personnel. The employer may also terminate the

employment of any employee due to the

installation of labor-saving devices, redundancy,

retrenchment to prevent losses or the closing or

cessation of operation of the establishment or

undertaking unless the closing is for the purpose of

circumventing the provisions of this title, by serving

a written notice on the workers and the Department

of Labor and Employment at least one (1) month before the intended date thereof.

Separation Pay Article 283. Closure of establishment and reduction

of personnel. X X X X X X In case of

termination due to the installation of labor-saving

devices or redundancy, the worker affected thereby

shall be entitled to a separation pay equivalent to at

least one (1) month pay or to at least one (1) month

pay for every year of service, whichever is higher. In

case of retrenchment to prevent losses and in cases

of closures or cessation of operations of

establishment or undertaking not due to serious

business losses or financial reverses, the separation

pay shall be equivalent to one (1) month pay or at

least one-half (1/2) month pay for every year of

service, whichever is higher. A fraction of at least six

(6) months shall be considered one (1) whole year.

Procedure Probationary Employees

Section 2, Rule I, Book VI: If the termination is

brought about by the completion of a

contract or phase thereof, or by failure of an

employee to meet the standards of the

employer in the case of probationary

employment, it shall be sufficient that a written

notice is served the employee, within a

reasonable time from the effective date of

termination.

Procedure

Article 277. Miscellaneous provisions. X X X X X X

(b) X X X X X X Any decision taken by

employer shall be without prejudice to the

right of the worker to contest the validity or

legality of his dismissal by filing a complaint

with the regional branch of the National Labor

Relations Commission. The burden of proving

that the termination was for a valid or

authorized cause shall rest on the employer.

Suspension of Effects of Termination Article 277. Miscellaneous provisions. X X X

X X X

(b) X X X X X X The Secretary of Labor and

Employment may suspend the effects of the

termination pending resolution of the dispute

in the event of a prima facie finding by the

appropriate official of the Department of

Labor and Employment before whom such

dispute is pending that the termination may

cause a serious labor dispute or is in

implementation of a mass lay-off.

Disease Article 284. Disease as ground for termination.

An employer may terminate the services of an

employee who has been found to be suffering

from any disease and whose continued

employment is prohibited by law or is

prejudicial to his health as well as the health of

his co-employees: Provided, That he is paid

separation pay equivalent to at least one

month salary or to one-half month salary for

every year of service, whichever is greater, a

fraction of at least six months being

considered as one whole year.

Article 264. Prohibited activities. (a) X X X X X X

Any worker whose employment has been terminated as a consequence of an unlawful lockout shall be entitled to reinstatement with full backwages. Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment right: Provided, That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment, even if a replacement had been hired by the employer during such lawful strike.

Strike

Remedies




An employee who is unjustly dismissed from

work shall be entitled to reinstatement without

loss of seniority rights and to his backwages

computed from the time his compensation

was withheld from him up to time of his

reinstatement.

Resignation

Article 285. Termination by employee. (a) An employee may terminate without just cause

the employee-employer relationship by

serving a written notice on the employer at

least one month in advance. The employer

upon whom no such notice was served may

hold the employee liable for damages.

Resignation Article 285. Termination by employee.

(b) An employee may put an end to the relationship

without serving any notice on the employer for any

of the following just causes:

(1) Serious insult by the employer or his

representative on the honor and person of the

employee;

(2) Inhuman and unbearable treatment accorded

the employee by the employer or his representative;

(3) Commission of a crime or offense by the

employer or his representative against the person of

the employee or any of the immediate members of

his family; and

(4) Other causes analogous to any of the foregoing.

Suspension of Operations

Article 286. When employment not deemed

terminated. The bonafide suspension of the

operation of a business or undertaking for a period

not exceeding six months, or the fulfillment by the

employee of a military or civic duty shall not

terminate employment. In all such cases, the

employer shall not reinstate the employee to his

former position without loss of seniority rights if he

indicates his desire to resume his work not later

than one month from the resumption of operations

of his employer or from his relief from the military

or civic duty.

Labor Standards


Contracting

Kinds of Employment

Statutory Benefits

-----------------------------


Dispute Settlement

Simple Money Claims Article 129. Recovery of wages, simple money

claims and other benefits. Upon complaint of any interested party, the Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the Department is empowered, through summary proceeding and after due notice, to hear and decide any matter involving the recovery of wages and other monetary claims and benefits, including legal interest, owing to an employee or person employed in domestic or household service or househelper under this Code, arising from employer-employee relations: Provided, That such complaint does not include a claim for reinstatement: Provided, further, That the aggregate money claims of each employee or househelper do not exceed five thousand pesos (P5,000).

X X X X X X X X X

Money Claims Article 217. Jurisdiction of Labor Arbiters and the

Commission. (a) Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, x x x x x x x x x the following cases involving all workers, whether agricultural or non-agricultural: X X X X X X X X X

(3) If accompanied with a claim for reinstatement, those

cases that workers may file involving wages, rate of pay,

hours of work and other terms and conditions of

employment; X X X X X X X X X

(6) Except claims for employees compensation, social

security, medicare and maternity benefits, all other claims

arising from employer-employee relations, including those

of persons in domestic or household service, involving an

amount exceeding five thousand pesos (P5,000.00),

whether or not accompanied with a claim for

reinstatement.

Visitorial and Enforcement Article 128. Visitorial and enforcement

powers. (a) The Secretary of Labor and Employment or his duly authorized representatives, including labor regulations officers, shall have access to employer's records and premises at any time of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to question any employee and to investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of this Code and of any labor law, wage order or rules and regulations issued pursuant thereto.

X X X X X X X X X

Visitorial and Enforcement

Article 128. Visitorial and enforcement powers. X X X X X X

(b) The provisions of Article 217 of this Code to the contrary notwithstanding and in cases where the relationship of employer-employee still exists, the Secretary of Labor and Employment or his duly authorized representatives shall have the power to order and administer, after due notice and hearing, compliance with the labor standards provisions of this Code and other labor legislation based on the findings of labor regulation officers or industrial safety engineers made in the course of inspection, and to issue writs of execution to the appropriate authority for the enforcement of their order, except in cases where the employer contests the findings of the labor regulation officer and raises issues which cannot be resolved without considering evidentiary matters that are not verifiable in the normal course of inspection.

Art. 129 - APPEAL

Article 129. Recovery of wages, simple money claims and other benefits.

X X X X X X X X X

Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on the same grounds provided in Article 223 of this Code, within five (5) calendar days from receipt of a copy of said decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10) calendar days from the submission of the last pleading required or allowed under its rules.

Penalty for Non-Payment of

Correct Wages (R.A. 8188) Any person, corporation, trust, firm,

partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with RA 6727, shall be punished by a fine of not l

Labor Standards

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Transcript of Labor Standards