Labor Standards - Midterm Transcript 2013

Labor Standards Midterm Transcript
AY 2013-2014
Labor Standards Midterm Transcription
(AY 2013-2014)
Atty. Jefferson Marquez
Q: Does Labor and Capital stand on equal footing?
NOTE: Answers presented in the transcript are the direct answers to

the questions of Atty. Marquez from classmates answers sa orals,
notes, reviewers and from Atty. Marquez himself. Ako lang gi-short-cut
for easy studying/reviewing. Some questions might be redundant so
bear with me nlng. If you see X X X it means nga naa pay sumpay
pero wla lang nko g-include because puno2x lang xa sa katas and some
were not included in the orals.
REMINDER: Atty. Marquez prefers answers in complete sentences.
A (Ivar): They stand on equal footing in Communism, but

the Philippines is a democracy and a capitalist country so
they dont stand on equal footing.
It is on the part of the Govt to institute policies to raise
the status of Labor thru police power to equalize the
relationship between Labor and Capital (L&C).
Attys Discussion:
Capital will never agree to be on equal footing with
labor.
June 18, 2013
TOPIC 1: THE APPLICABLE LAWS
Atty: Do you think it would be possible for the

government to equalize L&C?
Q: When is Labor Day?
Ivar: not perfectly, but the state could give labor a fighting
chance. Ideally labor and capital should be in harmony.
A (Ivar): May 1 (Every Year)

Q: What law can we find the Labor Code of the
Philippines? (Complete your answer)
Atty: If we put L&C on equal footing then we dont need

to study Labor Standards anymore.
A: PD 442
Since they dont stand on equal footing, the Constitution
provide for the protection of Labor and the Labor Code
was enacted to primarily protect labor and not capital.
Q: When did PD 442 take effect?

A: Nov. 1, 1974
Q: What is meant by Labor?
A (Ivar): Labor could either be physical toil or application
of skill.
We study Labor Standards to identify existing laws that

extend to the protection of our workers because of the
recognition of the socio-economic imbalance between
L&C.
Q: What is the basis for the enactment of Labor Laws?
Cite (1)
Attys Discussion:
Labor may also refer to a job, work or service;
Exertion by a human being of his physical or mental effort
or both towards production of goods and services;
A: (1) Social Justice Giving a person his due in the

society. If a person works for a specified number of hours,
he should be compensated accordingly. Those who have
less in life should have more in law Ramon Magsaysay
May also refer to the working class in society;

Q: What is the end result of the performance of Labor?
A: The production of goods and services.
Q: What is the counterpart of Labor?
A: Capital (labor and capital are not the same)
The law is geared towards the concern of labor because

our legislators realize that social and economic imbalance
between the employer and employee.
Q: Can you think of a law that was enacted by congress
on the basis of Social Justice?
A (Ivar): RA 7610 (Anit-Child Abuse Act) as amended by RA
9231
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It sought to regulate the work/employment of children
below age 15, since they do not stand on equal footing
with adults. The law protects the rights of children, they
do not exert an equal amount of physical and mental skill
as compared to adults.
Atty: It makes sense! (Tiene Sentido! )
Q: Is Police Power found in the Constitution?

A: there is no specific provision in the Constitution, it is
inherent. Police power is not written in the constitution.
Q: Give a third basis for the enactment of labor laws?
A: (3) Protection to Labor
You can also use the Retirement Pay law under the
Labor Code as a piece of social legislation that illustrates
Social Justice. Retired employees cannot anymore earn,
so they are provided with retirement pay which they can
use during their twilight years.
Q: Give another basis for the enactment of Labor laws.
A (Arfel):
(2) Police Power - Inherent power of the state to enact
legislations that may interfere with personal liberty or
property in order to promote the general welfare of the
people. (General Welfare clause)
Example:
Article XIII, Section 3, 1987 Constitution. 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.
Reason: Employer stands in a higher footing than the
employee because of economic dependence of the
employee on the employer and the greater supply of
labor than the demand of it.
Example: Migrant Workers Act
Q: What does the Capital (Employer) have that makes
the employee economically dependent?
Article 263 LC
(g) When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of
Labor and Employment (SOLE) may assume jurisdiction
over the dispute and decide it or certify the same to the
Commission for compulsory arbitration
A: it has the resources whether financial, physical

(building, workplace), ___.
Attys Discussion:
The Constitution also provides protection to Capital,
under the constitutional clause, every enterprise has the
right to a fair and reasonable return of their investments
Reason: SOLE may compel the employer to admit the

employees and the employees to return to their work.
Note: but protection must be extended more on labor

because of economic dependence.
Attys Discussion:
Labor law only covers Employees. If a person does not fall

under the classification of an employee then he/she is
covered by the Civil Code of the Philippines under civil
contracts.
Art 263 (g): when there is a labor dispute likely to cause of

causes a strike in an industry indispensable to national
interest, the SOLE can assume jurisdiction.
The striking workers are required to return to work
whether they like it or not. As much as they want to
exercise their right to strike and self-organization, it can
be interfered. Any interference is Constitutionally valid
under Police Power.
Q: How does the Civil Code describe the relation

between Capital and Labor?
Page 2
Art. 1700, Civil Code. 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

AY 2013-2014
labor unions, collective bargaining, strikes and lockouts,
closed shop, wages, working conditions, hours of labor and
similar subjects.
(Andrew):
In short, an employment contract is not merely

contractual but is impressed with public interest and must
yield to the common good.
If this were to happen now, we apply labor laws (labor
relations) and the state will intervene in order to protect
the public with regards to their obligation to provide
education to children.
There are 4 parties to an employment contract:

1.
2.
3.
4.
It is harmful to the public and must be regulated.
Employer
Employee
State enacts and enforces labor laws
Public
Labor disputes also affect the state and the public at large
if employees are engaged in strike or other concerted
activities.
Q: Is there any other basis for the enactment of Labor

Laws aside from Police Power, Social Justice and
Protection to Labor?
A: (Stephanie)
(4) Doctrine of Incorporation
Situational Question:
If USC hires teachers and then pays them below the
minimum wage and provides them oppressive terms and
conditions of employment, who will be the aggrieve
party?
The teachers will be the aggrieved party and seek
grievances with the proper courts.
Teachers not paid the right wages might exercise their
right to self-organization and form a union.
(Emphasis on how the state and the public will be
affected in an employment contract)
Article 2, Section 2, 1987 Constitution. - The Philippines

renounces war as an instrument of national policy, adopts
the generally accepted principles of international law
(GAPIL) as part of the law of the land and adheres to the
policy of peace, equality, justice, freedom, cooperation,
and amity with all nations.
Attys Discussion:
The state enters into an international agreement
especially in labor laws, those agreements shall form part
of the laws of the land.
(Andrew):
Example of a law enacted by Congress in accordance with

an International Agreement (Stephanie):
If the teachers are underpaid, they will form a union and

the union will stage a strike.
RA 7610 Anti-Child abuse law.
If the union stages a strike, the operations of the school

will be affected where the students and the parents will
be prejudiced in a way where their children will no longer
be able to receive proper education.
(Atty. M):
Protection from Child Labor.

Under the anti-child abuse law, it contains the prohibition
of employment for children below 15 years of age unless
under the supervision of their parents in accordance with
the guidelines of DOLE.
It will prejudice the public. Just imagine if the teachers

stage a strike and there will be a temporary stoppage of
work and the parents already paid the tuition fees.
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Attys Discussion:
(Atty M): Yeah thats correct.
dailymonthly. Then congress would enact a law that

companies should not give benefits other than those
mandated by law.
We have many International Conventions. Aside from that

mentioned by (Stephanie), also included are the:
The employees would be prejudiced by the law because

they would be deprived of their one sack of rice.
a. International convention on the right to selforganization

b. International convention on the right to collective
bargaining
The Philippine Congress enacted the laws that embody
those International Agreements; the right to selforganization and the right to CBA are found black in white
under the existing labor laws in the Philippines.
Atty. M: You can use that logic in the interpretation of the

limitation
Q: Is there another limitation to the enactment of labor
laws?
A: (Grace)
(2) Equal Protection Clause
Why are we discussing these topics? (Atty M is referring

to the 4 basis of enacting labor laws)
Its because when you become a Congressman and you
want to enact a labor law, you have to use as basis any/all
of these (4) principles:
1.
2.
3.
4.
Under the labor code, there is no mandatory one sack of

rice.
Police Power
Social Justice
Protection to Labor clause
Doctrine of Incorporation
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.
Equality among equals; Individuals similarly situated must
be treated equally under the law
There should be equal opportunities and equal working
standards among the same classification of workers.
You dont enact a law based on your own personal

interest otherwise you are a bad politician.
For example, Congress cannot pass a law prohibiting

women from becoming mechanical engineers. Even
though men usually venture into this line of work, woman
should be given the same opportunity.
Q: If you are a Congressman, are you subject to certain

limitations in the enactment of labor laws?
Attys Discussion:
We have the Magna carta for women by Pia Cayetano.
Under this law, it provides for equal job/employment
opportunities for women.
A (Stephanie):
Yes, there are limitations. One of which is the
(1) Non-Impairment Clause
Article III, Section 10. No law impairing the obligation of
contracts shall be passed.
Pia Cayetano must have read the Labor Code which

prohibits women from working at night. Under the magna
carta for woman, congress considered the prohibition as
discriminatory against women for being violatory of the
equal protection clause.
(Example by Stephanie)
The company states in the employment contract that they
shall provide the employee a sack of rice
Why disallow women and allow men from working at

night when women can stand on equal footing with men
with regards to night work. Ex. BPOs (Call centers)
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Q: Is there any other limitation, aside from the Equal
Protection Clause?
Art. 274. Services rendered under compulsion in

payment of debt. The penalty of arresto mayor in its maximum
(3) Due Process Clause
period to prision correccional in its minimum period shall be imposed

upon any person who, in order to require or enforce the payment of a
debt, shall compel the debtor to work for him, against his will, as
household servant or farm labourer.
(Refer to: Article III, Section 1)
Q: What are the 4 Systems of Labor?
A: (Grace)
1.
2.
3.
4.
The essence of due process is that it gives the employee

an opportunity to be heard.
Q: What can Congress NOT DO, which would otherwise
violate Due Process? Give an example.
A: (Grace) Congress cannot enact laws wherein it states
that the employer can have the unbridled discretion to
dismiss an employee without just cause.
Slavery
Serfdom
Free Artisan (Independent Contractor)
Wage System
Q: Which among the 4 are prohibited under our

Constitution?
A: Slavery and Serfdom
Attys Discussion:
Q: What is Slavery?
When an employee attempts to kill the employer, you

cannot summarily dismiss the employee without due
process. No law can be passed along that line, otherwise
it would be unconstitutional.
A: Refers to the extraction of work or services from any

person by means of enticement, violence, intimidation or
threat, use of force or coercion, including deprivation of
freedom, abuse of authority or moral ascendancy, debt
bondage or deception. (DO 65--04 S2004)
Q: Other limitations.
The worker is owned by another at his free disposal.
A: (April)
Q: What is Serfdom?
(4) Prohibition Against Involuntary Servitude
A: Worker, by customary right to his Lord, owes certain

service.
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.
Enforced labor of serfs on the fields of the landowners, in

return for protection and the right to work on their leased
fields.
(e.g. antitrafficking in persons act, forced labor, slavery)
While working on the field of another, but the produce

does not belong to him but belongs to the land owner.
Q: What is meant by Involuntary Servitude?

A: No person may be compelled to work against his will
Q: Is there any provision in the Revised Penal Code that
prohibits Involuntary Servitude?
Q: What is the prohibition in the Philippines against

Serdom?
Art. 272. Slavery. The penalty of prision mayor and a fine of not
A: Art. 274. Services rendered under compulsion in

payment of debt.
exceeding 10,000 pesos shall be imposed upon anyone who shall

purchase, sell, kidnap or detain a human being for the purpose of
enslaving him.
XXX
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Q: What is the Wage system?
A: Yes. The determination of the amount of compensation

lies exclusively with the independent contractor.
A: A person offers his services to another under an

employment contract for which such service is paid by
wages.
There is no economic dependence on the part of the

independent
The same with modern employer-employee system where

there is an employee under the control and supervision of
an employer as to the means, manner or method of which
the work is to be accomplished including the result
thereof and is paid for the work done in terms of wage.
Attys Discussion:
Attys Discussion:
Note: A lawyer may also be an employee. If you are

employed as a Dean in USC, then you are paid as a Dean
and not as a lawyer. You are employed as an employee
and not as an independent contractor.
If USC hires me as a teacher and USC fixes my schedule of

work and gives me a specific load. I cannot teach any
subject other than Labor Standards, and I cannot teach at
any time that is convenient to me, I cannot teach anything
that is contrary to law.
So there is degree of control.
Ex. If you are a lawyer in the exercise of your profession,

you can fix your compensation at Php 25,000, but of
course the client can negotiate.
Q: Is the Independent Contractor subject to control by

the employer? Give an example.
A: No. Ex. If a lawyer is hired to draft a contract, the client
has control only with the results and not the means and
manner.
If the dean wants me to submit a course outline in a

prescribed form, I must follow.
The system of labor that exists between me and the
school is the Wage System.
So there is absence of control in Independent

Contractorship compared to an employee.
Q: What is Independent Contractorship (Free Artisan)?

A: There is lesser degree of control. The employer does
not have control over the means, manner, and method of
doing the work, he has control only as to the result
thereof.
Ex. If I hire a CPA and I tell the CPA to prepare a financial
report and he must submit it within the week, I only have
control over the result.
Q: What are the (2) Chief characteristics of an employee?
1. Economic Dependence - Employee cannot bargain the
terms and conditions of employment.
2. Subordination in Work Relation (Subject to

Control) - Employer exercises control not only the means,
manner and methods but also the results thereof.
Q: Aside from studying the Labor Code, we also

mentioned on the course outline that our studies involve
rules and regulations issued by what Dept? under what
power?
A: Department of Labor and Employment (DOLE), under
their quasi-legislative power or also known as their RULE
MAKING POWER.
[IF MAG MULTIPLE CHOICE SI ATTY, HE WOULD GIVE US
CHOICES, SINCE THERE ARE NO MORE MULTIPLE CHOICE
QUESTIONS, HE WILL BE ASKING US WHAT POWER
DOES THE DOLE EXERCISE?]
DOLE is expressly concurred with the power to implement
rules and regulations.
*Emphasis on: MEANS and MANNER

Q: In an Independent Contractorship, does the
independent contractor have the liberty to fix the
compensation that he wants to be paid?
Q: What is the purpose of issuing Rules and Regulations

when there is already a law (Labor Code)?
A: DOLE issues rules and regulations to interpret and
implement the law.
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Q: Are these rules and regulations considered laws?
form part of the legal system, however the parties

involved in the dispute are obliged to follow the decisions.
A: Rules and regulations have the force and effect of law,

provided they do not expand the law or strip the law.
Otherwise, under the rules on statutory construction,
these will be considered void.
Q: In what instance, if any, does Administrative

Decisions form part of legal system?
If Rules and regulations are intended to interpret the laws

then they are merely advisory.
If they are intended to implement then they have the
force and effect of laws, but not withstanding, they
cannot expand and unduly restrict the scope and effect of
the law.
Q: Aside from rules and regulations we also have
decisions of the SC, what can you say about judicial
decisions?
A: Art. 8, New Civil Code - Judicial decisions applying or
interpreting the laws or the Constitution shall form a part
of the legal system of the Philippines.
A: When that administrative decision is affirmed on

appeal by the Supreme Court, applying Art 8 of the NCC.
Until then, it is not part of the legal system of the
Philippines.
June 25, 2013
TOPIC 2: BASIC PRINCIPLES

Q: What are the (2) aspects of Labor Standards?
A:
1. Meliorative Labor Standards intended to expand
the flow of income or benefits to the workingman
that are required for a decent living. (E.g.
overtime pay, premium pay)
2. Protective Labor Standards intended to protect
harsh and oppressive conditions of work that
inimical to health, safety and well-being of the
workers. (e.g. protect the health safety and wellbeing of the workers, prescribed hours of work)
(Ericka):
Judicial decisions, also known as jurisprudence can serve
as a basis for interpreting the laws and the manner on
how the SC applied the said law.
They are not laws, but they form part of the legal system.
Q: Being part of the Legal System of the Phil, are the
citizens expected to comply and obey the decisions of
the high court?
A: Yes, just like the laws of the land we have respect, obey
and comply with judicial decisions.
Q: Applying it to Labor Standards, do the decisions of the
NLRC, Labor Arbiter, Regional Director form part of the
Legal System?
Q: How do we know if a certain contractual relationship

is one of Employer-Employee and not Independent
Contractorship?
A: (Jo)
We use the (4) Fold Test: (por-pold test )
Atty: Ex. If I am underpaid by the USC and I sue the

school. And there is a decision by DOLE finding USC guilty
of underpayment of wages and it is found in the decision.
Does that not form part of the legal system such that USC
has to obey it?
1.
2.
3.
4.
Selection and engagement of employees;

Payment of wages;
Power of dismissal;
Power of control over employees conduct and
over the means and manner by which the work is
to be accomplished. (Most controlling test)
A: (Ericka)
No, these decisions are considered Administrative
decisions under their quasi-judicial function, and do not
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Q: If I go to Ayala to look for a dentist and I see a Dental
Clinic with a dentist and asked him to examine my teeth.
The dentist then examined my teeth and found out that
one tooth needs to be extracted and I agreed. After that,
he charged me a fee for his services.
Q: What is the (2) Tiered Test?

A: (Joanne)
1. The putative employers power to control the
employee with respect to the means and manner
by which the work is to be accomplished;
2. The underlying economic realities of the activity
or relationship. (Economic Reality Test)
Applying the (4) Fold test, is there an EmployerEmployee relationship?

A: (Jo) No, even if you engage or hire the services of the
dentist, the patient was not in control of the means and
manner of extracting the tooth. Lacks the element of
control; there is control only as to the results thereof.
Q: How to determine that a person is economically

dependent?
A:
Q: Why cant I control the means and manner of the

work of the dentist?
1. Number of years in the company;

2. Reported to SSS (good indicator of treating him as
an employee;
3. Registered in the patrol;
4. Identification card;
5. Company uniform.
A: The dentist is an independent contractor.

Employee vs Independent Contractor (IC)
The distinction says that aside from engaging in the
business separately distinct from the principal, the
performed job, work, or services is according to his own
means and methods free from the control and direction
of the principal except as to the results thereof.
Attys Discussion:
Q: Among the (4) Fold test, which element is missing in

an Independent Contractorship?
The Two-Tiered test is usually applied only when there is

doubt whether the relationship is actually an employeremployee relationship, or if there is no written
employment contract.
A: No. 4 Control, there is absence of control as to the

means and manner except as to the results thereof.
If you have a written employment contract then there is

no question that you are an employee.
Q: Does the Labor Code apply to an Independent

Contractor?
Q: What are the Chief characteristics of an employee? (A

review)
A: No, the Civil Code applies.
A: (1) Economic Dependence; (2) Subordination in Work

Relation.
Q: Does an Independent Contractor depend on a

particular person for his income?
A: No. His income depends on the number of patients that
he has and not dependent on one particular person.
Q: If you are an employee, do you perform specialize
service?
TOPIC 3: RIGHT TO HIRE

Atty M: Going back to the (4) Fold test, the first one is the
Selection and Engagement of Employees or Hiring. This
belongs to the employer.
A: No.
Q: Is the power of Selection and Engagement an

absolute right of the employer?
Q: Does a dentist perform a specialize service?
A: No, it is a Management Prerogative.
A: Yes, dental services.
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Management Prerogative - It is an act of the employer according
to his own judgment or discretion to regulate his business. This
includes hiring, transfer, dismissal, etc.
Since it is not an absolute right, it is subject to limitations,

such as:
a. Laws/Special Laws;
b. Collective Bargaining Agreement (CBA)or the
Contract;
c. Principles of equity, fair play and justice.
A: it depends, if the establishment is classified as a

hazardous workplace then the establishment is not
allowed to hire an individual 15 years old.
Q: Is there a law that prohibits me from employing a
person 15 years of age in a hazardous work place?
A: Yes,
a. Art 139. Minimum Employable Age Labor Code:
XXX
c. the forgoing provision shall in no case allow the
employment of a person below 18 years of age in
an undertaking which is hazardous or deleterious
in nature as determined by the SOLE.;
LEGAL LIMITATIONS/PROHIBITIONS PRIOR TO HIRING

Q: Are there limitations on hiring provided by the Labor
Code? Mention one Article.
Q: Is there a law or existing regulation that classifies a

workplace as hazardous?
A: (Joanne)
Art 139. Minimum Employable Age:
A: Department Order No. 004-99:
a) No child below fifteen (15) years of age shall be employed, except

when he works directly under the sole responsibility of his parents or
guardian, and his employment does not in any way interfere with his
schooling.
Sec. 3
XXX
b) Any person between fifteen (15) and eighteen (18) years of age may
be employed for such number of hours and such periods of the day as
determined by the Secretary of Labor and Employment in appropriate
regulations.
1. Work which exposes children to physical,

psychological or sexual abuse, such as in:
a) lewd shows (stripteasers, burlesque
dancers, and the like)
b) cabarets
c) bars (KTV, karaoke bars)
d) dance halls
e) bath houses and massage clinics
f) escort service
g) gambling halls and places
c) The foregoing provisions shall in no case allow the employment of a

person below eighteen (18) years of age in an undertaking which is
hazardous or deleterious in nature as determined by the Sec. of Labor.
Attys Situation:
If I am a foreign investor and I would like to consult you of
possible investments in Cebu. I would like to know if there
are limitations on my prerogative to hire Filipinos to work
in my establishment.
XXX
I would like to hire 15 year old individual because I know

that they are energetic.
DOLE was the one who classified these work places as

Hazardous.
Joanne: I would advise you to look into the working

conditions of the workplace, whether or not your
establishments are hazardous or non-hazardous.
In these types of establishments persons under 18 are not

allowed to be employed with or without parental
supervision.
Q: Can I hire an individual 15 years old to work in my

establishment?
This is a Department Order by DOLE pursuant to their rule

making power. Remember that DOs are not laws.
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Q: Is it criminal if you employ children below 18 in
hazardous work places?
Atty M: thats enough, DOLE has already classified those

instances.
A: Yes, it is criminal under RA 9231.
This settles the issue that it is a criminal offense for an

employer to hire children below 18 to work in hazardous
environments.
RA 9231
Sec. 12-D. Prohibition Against Worst Forms of Child
Labor. - No child shall be engaged in the worst forms of
child labor. The phrase "worst forms of child labor" shall
refer to any of the following:
Q: Give another provision in the Labor Code that is a

limitation on hiring.
A: (Connie)
Labor Code:
Art. 136. Prohibition Against Stipulation of Marriage
It shall be unlawful for an employer to require as a condition of
employment or continuation of employment that a woman
employee shall not get married or to stipulate expressly or tacitly
that upon getting married, a woman employee shall be deemed
separated, or to actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely by reason of her
marriage.
"(4) Work which, by its nature or the circumstances in

which it is carried out, is hazardous or likely to be harmful
to the health, safety or morals of children, such that it:
Sec. 16. Penal Provisions
"b) Any person who violates the provision of Section 12-D
of this act or the employer of the subcontractor who
employs, or the one who facilitates the employment of a
child in hazardous work, shall suffer the penalty of a fine
of not less than One hundred thousand pesos
(P100,000.00) but not more than One million pesos
(P1,000,000.00), or imprisonment of not less than twelve
(12) years and one (1) day to twenty (20) years, or both
such fine and imprisonment at the discretion of the court.
The employer cannot require a woman, who applies for a

job, to agree that she should not get married or that
getting married is a basis for termination.
Attys Discussion:
If I say, Ms. Jane Doe, I will hire you provided that you do
not get married because I do not like married people. (this
is VOID for being a violation)
Q: What kind of child abuse is employing children below

18 qualified?
Q: What is wrong with the stipulation of marriage in

hiring? or why is it prohibited?
A: The worst forms of Child Labor.
What will happen to the woman who wants to get

married but cannot because otherwise she would not be
employed?
Sec 12. .
"(4) Work which, by its nature or the circumstances in which
it is carried out, is hazardous or likely to be harmful to the
health, safety or morals of children, such that it:
How is married treated under the Constitution and in

our laws?
A: (daghan wah katubag)
"a) Debases, degrades or demeans the intrinsic worth

and dignity of a child as a human being; or
Attys Discussion:
"b) Exposes the child to physical, emotional or sexual

abuse, or is found to be highly stressful psychologically
or may prejudice morals; or
. . . . . . . . . (naa pay sumpay pero gipaundang nan i sir
og enumerate, read the law if you want to see more)
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Family Code
Article 1. Marriage is a special contract of permanent union
between a man and a woman entered into in accordance
with law for the establishment of conjugal and family life. It is
the foundation of the family and an inviolable social

AY 2013-2014
institution whose nature, consequences, and incidents are
governed by law and not subject to stipulation, except that
marriage settlements may fix the property relations during
the marriage within the limits provided by this Code.
Atty Ms Situation:
If I am the employer and I tell you, Ms. Jane Doe, I will
hire you provided that you will not get married. And you
have a boyfriend and you plan to get married but you
really need the job. You then agreed to the stipulation
and you keep yourself free from marriage but still
continue with your relationship with your boyfriend
without the benefit of marriage.
This type of relationship is a common law relationship.
If you decide to have a family your children would
become illegitimate.
As far as the Catholic Church is concerned, the church
does not tolerate this kind of relationship. This is
considered as immoral.
These are the evils sought to be avoided by the
prohibition.
Employers dont like their employees getting married
because eventually they will have children and if you are a
woman, having children means you have to go on
maternity leave with pay, and if the woman undergoes
surgery (CS) then she will have an extended 2 month
leave with pay. This would result in no one being at work
which is bad for business.
Attys Situation:
A job applicant comes to me for a job but he only has one
arm and the job available is a messenger.
I say oh you only have one arm, I will not hire you
because you only have one arm. How can you deliver
messages with only one arm. The rule is I cannot
discriminate on reason of his disability.
But the question is, for a job of a messenger, is a person
with only one arm qualified to be a messenger? Do you
think the job of a messenger can be efficiently performed
by a person with only one arm? Hypothetically, how will
he knock on the door?!
Is he then qualified? (is he qualified in the sense that he is
similar to an able bodied person if he does the job)
(Russel): No, because he cannot effectively perform his
job.
So in this case, you can deny him employment because of
his disability.
But if he were a qualified disabled person, for example:
his job is to count the number of people in the
establishment, he does not need an arm to do that, he
only needs his eyes.
Q: Another limitation on hiring.
A: (Russel)
Labor Code:
Art. 248. Unfair Labor Practices of Employers
It shall be unlawful for an employer to commit any of the
following unfair labor practice:
(b) To require as a condition of employment that a person or
an employee shall not join a labor organization or shall
withdraw from one to which he belongs.
rd
Q: Give a 3 limitation on hiring employees.

A: (Cemi)
RA 7277
Title 3, Chapter 1
(Magna Carta for Disabled Persons)
Sec 32. Discrimination on Employment. No entity, public
or private, should discriminate against qualified disabled
person in terms of job application procedures, hiring,
promotion, discharge, compensation and other benefits.
An employer is prohibited from discriminating against a

qualified disabled person with regards to hiring by reason
of his disability.
Situation:
Oh you are applying for a job. Well, I will only hire you
provided that you will not join any union or labor
organization. And then you say, OK. This is not valid!
Art 248 prohibits an employer from imposing as a
condition for employment that a person should not join
any labor unions/organizations.
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AY 2013-2014
Q: What is so important in joining a Labor Union?
A: Joining a labor union is one of the Constitutional Rights
of Workers to Self Organization. Prohibiting employees
from joining unions is what we call, unfair labor
practices
Q: Other Limitations: On Sexual Harassment
With lengthy casual employment handling bank deposits

there is a threat to Bank Secrecy where leakage of
information is highly possible.
Ex. There is leakage of account information as to the
Billions of pesos you have in your account; consequently
this may make you prone to kidnapping, etc.
Attys Discussion:
A: (Russel)
RA 7877 (Anti-Sexual Harassment Act)
An employer is prohibited from asking sexual favours as a

condition for employment.
Situation: I will hire you, but we must have sex first.
The gravamen of sexual harassment is the abuse of
power.
Non-regular employees come and go. When they go they

sometimes carry with them account informations. So in
order to prevent this from happening, this guarantees
outmost bank secrecy in the accounts of the depositors.
The law does not say that this will happen, but just in
order to prevent this from happening, there is such a
prohibition.
If there is no Bank Secrecy then people will not deposit
their money in banks.
Q: Other Limitations Prior to Hiring:

A:
RA 8791 (Gen. Banking Laws of 2000)
Sec. 55.4 No bank shall employ casual or nonregular personnel
or too lengthy probationary personnel in the conduct of its
business involving deposits.
Q: What is the reason behind the Gen. Banking law?

A: For casual employees, they do not enjoy security of
tenure since they can be terminated whenever the bank
wants. Hiring casual employees for too lengthy a time
compromises the bank and threatens national security
because banks are essential to the economy.
When money is deposited in the bank, some people loan

money from the bank to establish businesses. If there are
no more people depositing in banks because of lack of
Bank Secrecy then the bank cannot extend loans. If they
cannot extend loans then there will be no businesses, if
there are no businesses then it would not be good for the
economy.
So we have to maintain or Bank Secrecy laws, and one
way of removing those threats is to prohibit lengthy
probationary period for casual employees.
Im not saying that banks cannot hire casual employees.
Only that they cannot handle bank deposits.
Q: Any other restrictions: HIV/AIDS
(to be continued below)
A: (Jorj)
RA 8504
(Philippine AIDS Prevention and Control Act of 1998)
(July 2, 2013)
Continued from last meeting
(Jorj) Casual employees do not enjoy security of tenure
compared to regular employees.
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Sec. 35. Discrimination in the Workplace -- Discrimination in

any from pre--employment to post--employment, including
hiring, promotion or assignment, based on the actual,
perceived or suspected HIV status of an individual is
prohibited. Termination from work on the sole basis of actual,
perceived or suspected HIV status is deemed unlawful.

AY 2013-2014
Situation: An applicant approaches you for a job and he
has HIV/AIDS. The job available is an Accountant. You say,
I will not hire you because you have HIV/AIDS. (This is
illegal)
Q: Why is such discrimination prohibited?
A: (Jorj) because mere acquisition of HIV does not hinder
the performance of ones work.
HIV/AIDS is transmitted thru sharing of needles, sex, etc.
Being an accountant does not involve any of these.
Q: What is meant by an employee and what is meant by

an employer?
A: (Mike)
Employer includes any person directly or indirectly in
the interest of an employer in relation to an employee
and shall include the Government and all its branches,
subdivision and instrumentalities, all governmentowned
or controlled corporations and institutions, as well as nonprofit private institutions, or organizations. (Art 97b, Labor
Code)
The employer has control over the employee.
Q: Any other Special law on limitations on hiring?
Employee includes any individual employed by an

employer. (Art 97c, Labor Code)
RA 10354
(Responsible Parenthood and Reproductive Health Act)
SEC. 23. Prohibited Acts. The following acts are prohibited:
XXX
(c) Any employer who shall suggest, require, unduly influence
or cause any applicant for employment or an employee to
submit himself/herself to sterilization, use any modern
methods of family planning, or not use such methods as a
condition for employment, continued employment,
promotion or the provision of employment benefits. Further,
pregnancy or the number of children shall not be a ground for
non-hiring or termination from employment;
Q: What is the 2nd in the Four Fold Test?

A: Payment of Wages.
Q: What is meant by wage?
A: (Mike) Compensation for manual labor given to an
employee by the employer.
Labor Code
Art. 97.6 "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
and 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.
The employer is prohibited from stipulating, requiring,

influencing any applicant to subject himself/herself to
sterilization or to use or not to use modern methods of
family planning as condition for employment.
Discrimination on the number of children is also illegal.
Family planning is every individuals choice, whether he is
a job applicant or not.
TOPIC 4: WAGE and WAGE FIXING

Now that we know that hiring is a prerogative of the
employer, and now that we know that there are
limitations under the Labor Code and Special Laws as
regards to the prerogative of the employer to hire an
employee. And we might as well proceed to hire one.
Attys Discussion:
There are (2) components in wages:
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1. cash (remuneration of earnings); and

2. fair and reasonable value of the facilities.

AY 2013-2014
If you look at the definition under Art 97, it does not only
include payment of services rendered in cash or in legal
tender, but also in kind in the form of facilities.
Q: Is Wage the same as Salary? Why?
A: As so far as the Labor Code of the Philippines is
concerned, Wage and Salary mean the same and can be
used interchangeably.
The distinction is purely semantics according to the
Supreme Court
The court will ask you ex. Judge Seville will ask you to
satisfy the judgement but you have no money. But then I
see that you have other properties, so I tell the sheriff to
execute the judgement by running after your properties.
(so that is attachment)
Q: What does this situation tell us? How does the law
protect the labourer?
A: (Mike) the law protects the labourer by exempting his
wages from attachment or execution.
Attys Discussion:
(CASE: Equitable Bank vs Sadac).

Q: In what instance is it important to know the
distinction between Wage and Salary?
A: (Mike) under Art 1708, Civil Code
Civil Code
Art. 1708. The laborers wage shall not be subject to
execution or attachment, except for debts incurred for food,
shelter, clothing and medical attendance.
Q: Who incurs the debt?

A: the labourer. Food, shelter, etc are basic necessities of
the labourer.
Attys Discussion:
The worker works and earns his wage. Sometimes his
wage is not that much and it may happen that he might
need food, clothing, medical attendance.
If you read the law, for debts incurred by the labourer, his
wages shall be exempt from execution or attachment. In
other words, if he obtains a debt and the creditor sues
him and obtains a judgement, that judgement is usually
enforced by the creditor by garnishing his property by
executing on his property for satisfying the judgement.
If you buy food from me on credit basis then I am your
creditor and you have to pay me. Sometimes you cannot
pay, so what the creditor does is he goes to court and files
a collection of a sum of money. You cannot deny that you
owe me, so there will be a judgement against you.
Remember that a labourer has to work to earn his wage

(unless syndicato yan). That wage is the product of hard
labor/hard work.
And then here comes the employer/creditor. Imagine
without the protection, you owe the creditor Php 5,000
and your daily wage is just Php 300. The sheriff will get his
wage, and if there is no more wage then the labourer
cannot meet his basic necessities and his children will
starve to death.
Q: So what is the distinction between salary and wage in
relation to ART 1708?
A: (Mike) it is stated in the provision that the laborers
wage is exempt from execution or attachment,
HOWEVER, the laborers salary is NOT EXEMPT from
execution or attachment.
Q: What did the SC say about the distinction between
Wage and Salary?
A: (Mike)
Wage applies to compensation for manual labor, skilled
or unskilled, paid at stated times, and measured by the
day, week, month, or season; indicates inconsiderable pay
for a lower and less responsible character of employment.
(Blue Collar Jobs)
Salary denotes a higher degree of employment or a
superior grade of services, and implies a position or office;
suggestive of a larger and more permanent or fixed
compensation for more important service. (White Collar
Jobs)
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AY 2013-2014
submitted by
respectively.
Attys Discussion:
Exemption applies to WAGE only.
Exemption does NOT APPLY to SALARY.
The compensation for salary is much higher than that of
wage. The protection is extended as so far as labourers
are concerned and as so far as wages are concerned. The
protection does not extend to employees receiving salary.
Q: Do workers need to be remunerated for services
rendered?
the
workers
and
employers
sectors,
Q: According to Wage Order in Region 7, Wage order #

RO7-17. In so far as the cities of Mandaue, Lapu-lapu and
Cebu (which sir is only concerned of), how much is the
minimum wage for Non-Agricultural employees only?
A: Non-Agricultural Employees in Mandaue, Lapu2x and
Cebu Php 327 per day
Attys Nice to Know:
A: (Mike) Yes, their remuneration comes in the form of

wage or salary.
Notice the representative of the private sector in the

wage order, Atty. Pascual a former faculty member of
USC-Law.
Q: Who fixes the employees wage or salary?
Q: What is the composition of the NWPC?
A: The employer, it is his prerogative.
A: (RC)
Q: Is there a limitation provided by law for the fixing of

the employees salary?
Art 121 LC (As amended by Republic Act No. 6727, June 9, 1989).
1.
2.
A: Yes, there is s prescribed statutory minimum wage

under the labor code. The employer cannot pay his
workers below the prescribed minimum wage.
3.
Q: Who fixes the minimum wage? And under what law?

A: Regional Tripartite Wages and Productivity Boards
(RTWPB), under the Wage Rationalization Act (RA 6727)
Q: Under the Wage Rationalization Act, which (2)
Principal Government Agencies are involved in the fixing
of the minimum wage?
A: (1) National Wages and Productivity Commission; (2)
Regional Tripartite Wages and Productivity Boards
Q: What is the composition of the RTWPB?
A: (RC)
Art 122 LC (As amended by Republic Act No. 6727, June 9, 1989).
1.
2.
3.
Chairman Regional Director of DOLE;

(2) Vice-Chairman - Regional Director of NEDA & Regional
Director of DTI;
(2) members each from workers and employers sectors
appointed by the President upon recommendation of the
SOLE, to be made on the basis of the list of nominees
Ex-officio Chairman Secretary of DOLE;

Ex-officio Vice-Chairman Director General of NEDA;
(2) members each from Worker and Employer Sectors
appointed by the President upon recommendation of the
SOLE, to be made on the basis of the list of nominees
submitted by the workers and employers sectors,
respectively.
Attys Discussion:
Notice that theres always a trilateral arrangement in both
compositions of the NWPC & RTWPB; (1) Government, (2)
Employer/Private Sector, & (3) Labor/Public Sector.
Moving on.
The RTWPB has 2 Principal Powers; (1) power to fix the
minimum wage; (2) power to grant exemptions from the
minimum wage.
Q: (1) Power to fix the minimum wage: Do we have an
existing rules of procedure on minimum wage fixing?
And what agency of government promulgated these
rules?
A: (RC) Yes, NWPC promulgated the rules of procedure.
The NWPC is higher than the RTWPB and has the power
to promulgate rules and regulations.
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AY 2013-2014
Attys Discussion:
Notice under the rules, the board may Motu Proprio or
upon application of the proper party fix the minimum
wage.
RULE II: Minimum Wage Fixing
Section 3. Procedures in Minimum Wage Fixing.
(a) Motu Proprio by the Board;
XXX
(b) By virtue of a Petition filed;
XXX
the day, the board will deliberate and try to decide

whether to grant the petition or deny it.
Q: What are standards/criteria that needs to be
considered in fixing the minimum wage?
A: (RC)
RULE II: Minimum Wage Fixing
Section 2. Standards/Criteria for Minimum Wage Fixing.
The minimum wage rates to be established by the Board shall be as
nearly adequate as is economically feasible to maintain the
minimum standards of living necessary for the health, efficiency and
general well-being of the workers within the framework of national
economic and social development goals.
XXX
Q: Who is considered a proper party to file an

application for minimum wage fixing?
A: (RC) there are 2 proper parties, (1) Employees Sector;
(2) Workers/Labor Sector can only be filed thru a
legitimate and registered Labor Union/Organization.
Attys Discussion:
Usually the labor sector files the application thru their
labor unions. In Region 7, the most prominent labor union
is the ALU-TUCP.
Simplified Procedure for filing an application for
minimum wage fixing by Atty. Marquez
Interested parties shall file an application with the board.
The board under the rules of procedure will publish the
petition once in a newspaper of general circulation. In the
publication, the board will also set the date of hearing.
It must be held thru a Public Hearing because it involves
the public when either there is a wage increase or no
increase.
Here in Cebu, the hearing is done in the Capitol where
interested parties may appear and participate therein.
Oppositors may also participate and oppose the petition
for wage increase.
Not just anybody can attend the hearing; you must be an
interested party or a representative of the parties.
This data can be made available to the board thru the

respective representatives of the DTI and NEDA. Thats
why they are members of the board.
Q: What are the factors considered in the employers
side?
A: A wage that is too high and not affordable, the
employer might lose all their money. The board must
consider the fair and reasonable return of investments of
the employers.
When employers dont gain profit then they may close
their business.
These criteria must be weighed by the board and consider
these factors to maintain balance between employer and
employee.
If the application is granted then the board issues a
Wage Order
Q: How is the wage order defined under the Labor Code?
A: (n) Wage Order - refers to the Order promulgated by
the Board pursuant to its wage fixing authority.
Wage orders become effective (15) days after publication
in a newspaper of general circulation. If it becomes
effective then the employer must follow it.
The public hearing will be presided by the board and all

the members should be there and they will hear the
petitioner as well as the oppositionists and at the end of
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AY 2013-2014
Q: If the labor Organization is not happy with the Wage
Order because it wanted Php20 increase, but instead
they got Php10 increase, can they file another petition
for a wage increase?
7.
Disadvantages:
A: No, the wage order cannot be disturbed within 12

months from the date of effectively of the wage order.
1.
2.
However, exemption is when there are supervening

events such as increased prices of basic commodities,
high prices of oil. In these cases, the board will allow a
petition for wage increase.
3.
4.
Attys Discussion:
6.
For example: the board already issued a wage order and

after one month there was a war in the middle-east and
oil prices went up making basic commodities very
expensive. The board would not wait for one year for
another increase to entertain a petition or the board itself
can Motu Prorio decide on a wage increase.
If the exemption does not apply then the 12 month
prohibition governs.
5.
A:
A: (RL) they can appeal to the NWPC.

Q: On what grounds?
A: (RL)
a. Non-conformity with the prescribed guidelines
and/or procedures on exemption;
b. Prima facie evidence of grave abuse of discretion;
c. Questions of law.
2.
3.
4.
5.
6.
Q: What is the reglementary period for appeal?

A: (RL) not later than 10 days from the publication of the
wage order.
Attys Discussion:
Advantages:
1.
May lead to unemployment;

It would pauperize the worker, destroy their self-respect and
make them miserable;
Brings depression and thus impoverish the nation;
Constitutes infringement to the workers right to labor as he
could not dispose of the same under terms and conditions he
may see fit;
Will tend to be the maximum, employers will tend not to
increase the salary and stick to the minimum wage;
It causes wage distortion.
Q: If there is a Wage Order issued, and the petitioner is

not happy. Does the aggrieved party have a remedy
from a Wage Order?
Imagine, if there is no prohibition, the board would

always be very busy entertaining petitions every day and
the employers would not be able to maintain an increase
in minimum wage every month.
Q: What are the Advantages and Disadvantages of
Minimum Wage?
Reduces the evils of the sweating system exploitation of

workers at wages so low as to be insufficient to meet the
bare cost of living.
Protects the fair employers against competition from

unfair ones;
The law acts as an incentive to the low-wage employers to
improve methods in their plants and possibly to introduce
technological changes to conform to the demand of
minimum wage rate;
Promotes workers living standards;
A national minimum wage is an index to economic stability;
minimum wage lend help to provide the purchasing power
necessary to take all the goods of the market;
Promotes industrial peace and order in the sense that
dissatisfactions are reduced, increases the morale of the
employee;
May be subject to increase at collective bargaining table;
So now the NWPC will study the appeal to find out if the
wage order was issued right or wrong.
If they find out that the board committed an error in
issuing the wage order then they will set aside the order.
But if there is nothing wrong with the order then they will
just simply affirm the wage order.
Q: If an employer appeals the Wage Order, does it stop
the implementation of the order?
A: (RL) No, the order will still be implemented.
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AY 2013-2014
the Regional Trial Court or other courts whenever authorized by law,
may file with the Supreme Court a verified petition for review on
certiorari. The petition may include an application for a writ of
preliminary injunction or other provisional remedies and shall raise
only questions of law which must be distinctly set forth. The
petitioner may seek the same provisional remedies by verified
motion filed in the same action or proceeding at any time during its
pendency. (as amended by A.M. 07-7-12-SC)
Q: Is there an exception where an appeal made by the

employer can stop temporarily the implementation of
the wage order?
A: Yes, if the employer posts a bond equivalent to the
prescribed wage rate multiplied by the number of
employees.
Attys Discussion:
The bond should be enough to cover the wage of the
workers in case the order is affirmed as valid. So at least if
the bond is there and the employer loses in the appeal,
the government can use the bond to pay his workers. This
is to prevent the employer from delay of payment to the
employees.
So from the appeal, it stops from the NWPC which would
have to make the order final and executory.
Q: Is there a remedy from the NWPC in case they commit
grave abuse of discretion or non-conformity with
guidelines or etc?
A: An appeal can be made to the Court of Appeals.
So now, another power of the board is to (2) Grant

Exemptions.
Q: What establishments are eligible to apply for
exemption from the wage order?
REVISED GUIDELINES ON EXEMPTION FROM WAGE ORDERS
(NWPC GUIDELINES NO.01, SERIES OF 1996)
Section 2, NWPC Guidelines No. 01, Series of 1996:
1. Distressed establishments;
2. New business enterprises (NBEs);
3. Retail/Service establishments employing not more
than ten (10) workers;
4. Establishments adversely affected by natural
calamities.
Q: Is there a person, employer or establishment

exempted from the wage order by operation of law?
(this means he did not apply for exemption)
SPECIAL CIVIL ACTIONS

RULE 65
CERTIORARI, PROHIBITION AND MANDAMUS
A: (RL)
SECTION 1. Petition for certiorari. When any tribunal, board or

officer exercising judicial or quasi--judicial functions has acted
without or in excess of its or his jurisdiction, or with grave abuse of
discretion amounting to lack or excess of jurisdiction, and there is no
appeal, or any plain, speedy, and adequate remedy in the ordinary
course of law, a person aggrieved thereby may file a verified petition
in the proper court, alleging the facts with certainty and praying that
judgment be rendered annulling or modifying the proceedings of
such tribunal, board or officer, and granting such incidental reliefs as
law and justice may require. The petition shall be accompanied by a
certified true copy of the judgment, order or resolution subject
thereof, copies of all pleadings and documents relevant and
pertinent thereto, and a sworn certification of non--forum shopping
as provided in the third paragraph of section 3, Rule 46. (1a)
If further remedy is required, it shall be forwarded to the

Supreme Court.
RULE 45
APPEAL BY CERTIORARI TO THE SUPREME COURT
Labor Code
Art 98. Application of Title. This title [Wages] shall not apply to farm
tenancy or leasehold, domestic service and persons working in their
respective homes in needle work or in any cottage industry duly
registered in accordance with law.
Exempted:
1. Farm tenancy or leasehold;
2. Domestic service;
3. Persons working in their respective homes in needle work
4. Persons working in any cottage industry duly registered in
accordance with law.
You do not need to pay them Php327 a day. House

helpers or domestic helpers are provided a minimum
wage under the Kasambahay Law.
Q: If you apply for exemption, what agency of govt has
the power to process and approve the exemption?
SECTION 1. Filing of petition with Supreme Court. A party desiring

to appeal by certiorari from a judgment, final order or resolution of
the Court of Appeals, the Sandiganbayan, the Court of Tax Appeals,
A: (RL) RTWPB
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AY 2013-2014
Q: In case the board denies it, what are the remedies?
4. Existence of the distortion in the same region of

the country.
A: Appeal to the NWPC. (Same procedure as before)
Q: Are all elements in the above situation present?
Attys Situation: So right now we have Wage Order RO717 setting the minimum wage to Php327.
I have an establishment and I have an organizational
setup composed of rank and file employees, supervisors
and managers. I pay my rank and file minimum wage
(327), I pay my supervisors 500/day and I pay my
managers 1000/day.
Lets say 2 weeks from now there is a new wage order
fixing the minimum wage to Php500/day.
Is there Wage Distortion?
A: There is a wage distortion between rank and file
employees and supervisors, both receiving 500/day. The
supervisor is the aggrieved party in this situation.
Q: What is Wage Distortion?
ART. 124. Standards/Criteria for minimum wage fixing.

XXX 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. XXX (As amended by Republic Act No.
6727, June 9, 1989).
Q: What are the (4) Elements of Wage Distortion
enumerated by SC?
1. 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. Elimination of the distinction between the two
levels.
In the situation, the supervisors are the aggrieved parties

because they cannot allow the rank and file employees to
be receiving the same salary as them.
Q: If there exist a wage distortion, does the law provide
a solution?
A: Yes, the law provides Methods of Resolving Wage
Distortion which would depend on whether the
establishment is an Organized or an Unorganized
Establishment.
A:
A: Elements of Wage Distortion:
A: Yes, (1) There is a hierarchy of positions, rank and file,

supervisors & managers with salary rates 327, 500 & 1000
respectively; (2) there is a significant change in the salary
of the rank and file employees with an increase to
Php500/day and no increase in the salary of the
supervisors; (3) the distinction between the rank and file
and the supervisors are eliminated because both are
receiving the same salary of Php500; (4) the 4th element
is not so clear in the situation.
Q: When is an establishment considered Unorganized?

A: The establishment is considered unorganized if there is
no certified or recognized bargaining union or CBA.
(July 9, 2013)
Q: What solution is provided by law for Wage Distortion
in an Organized Establishments? The Step by step
procedure.
A:
Step 1: The union and the employer will try to resolve the
issue among themselves.
Step 2: If the parties will not be able to resolve the issue
by themselves, then they will refer it to the Grievance
Machinery and procedure incorporated under their CBA.
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AY 2013-2014
Grievance Machinery and Procedure provides for a step
by step procedure under their CBA where disputes are to
be resolved by the parties.
Step 1: The employer and the employees will try to

resolve the issue among themselves.
Step 2: There are (2) Possible Scenarios:
Example of a Grievance Machinery: first they will submit

the issue to the first-level manager; second submit to the
middle-level managers; and finally to the top-level
managers.
Step 3: If all steps are exhausted under the Grievance
Machinery and the dispute still remains unsettled, the
parties will then refer the matter to Voluntary
Arbitration.
Voluntary Arbitration here refers to a voluntary arbitrator
as defined by Art 260, 261, 262 & 263 of the Labor Code.
Either they will:

1. Refer to Voluntary arbitration (the same steps
ang e-follow parehas sa organized est.)
2. Conciliation under the NCMB (since mana
man tas Scenario#1, focus tah ani sa
Scenario#2)
NCMB National Conciliation and Mediation Board
NCMB will try to settle the dispute through amicable
settlement.
Q: Differentiate Voluntary Arbitration with Compulsory

Arbitration.
Step 3: If no settlement is arrived, the dispute shall be

brought to the appropriate branch of the NLRC for
Compulsory Arbitration.
A: Voluntary Arbitration is not compulsory (duh!); a
Step 4: If the parties are not satisfied, they can Appeal to

the NLRC.
contractual proceeding whereby the parties to any dispute or

controversy in order to obtain a speedy and inexpensive final
disposition of the matter, select a judge of their own choice and by
consent, submit their controversy to him for determination;
Step 5: If unresolved, Petition for Certiorari with CA under

Rule 65, Rules of Court.
Step 6: If still unresolved, Petition for Certiorari with SC
under Rule 45, Rules of Court.
They will be given a list of voluntary arbitrators from which they will
pick out those which they have chosen to be the arbitrators.
The labor arbiter in voluntary arbitration is chosen by the parties.
Compulsory Arbitration (jurisdiction of the labor arbiter is
TOPIC 6: WAGE ENFORCEMENT & RECOVERY
under Art 217 of the Labor Code.)

Process of settlement of labor disputes by a government agency (or by
other means provided by the government) which has the authority to
investigate and to make award which is binding on all the parties.
The labor arbiter in compulsory arbitration is chosen by the state.
Step 4: If a decision is rendered by the Voluntary

Arbitrator and one of the parties is not satisfied with the
decision, the remedy is to file a Petition for Review to CA
under Rule 43, Rules of Court, within 15 days from notice
of the award, judgement, final order or resolution. (no
appeal shall be brought to the NLRC in this stage, remedy
is rule 43)
(Ni skip si Atty. M sa Topic 5, basa lang gihapon gamay)

Q: What are the (2) Enforcement Tools under our Labor
Code which the government can use for the recovery of
wages?
A: (Tara) Enforcement Tools:
1. Art 128. Visitorial and Enforcemnet Power of the
Secretary of Labor or his duly authorized
representative.
2. Art 129. Recovery of wages, Simple money
claims and other benefits.
Step 5: If still unresolved, Appeal by Certiorari to the

Supreme Court under Rule 45, Rules of Court.
(Atty M: we will not discuss these steps in detail because this will be
covered under Remedial Law.)
[Atty. Marquez forgot to ask about the steps in resolving

wage distortion in Unorganized Establishments]
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AY 2013-2014
Q: What are the (4) Requisites for the Regional Director
of DOLE to exercise jurisdiction under Art 129?
A: (Tara) Requisites: (Remember this!)
1. The claimant is an employee, household/domestic
worker;
2. The claim arises from employer-employee
relationship (may involve non-payment/underpayment of
wages; non-payment/underpayment of overtime pay; nonpayment/underpayment of holiday pay, etc) ;
3. The claimant who is no longer employed does not

seek reinstatement;
4. The claim does not exceed Php 5,000.
A: (Marvin) In case of a judgment involving a monetary

award, an appeal by the employer may be perfected only
upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the
Commission in the amount equivalent to the monetary
award in the judgment appealed from, excluding
damages from Attorneys fees. (Art 223)
From the decision of the NLRC, an appeal can be made to
the CA in the form of a Special Civil action under Rule 65,
Rules of Court. (Note: Not an ordinary Appeal!)
After CA, theres no other way to appeal than to the SC
under Rule 45, Rules of Court.
Attys Situation:
Q: What is Art 128 of the Labor Code?
If you have a domestic worker and you are paying her

3,000/month. In one instance, you did not pay her salary
and then she left you. Of course she cannot forget the
3,000 salary you owe her, so she filed a complaint (simple
money claim) with the Regional Dir of DOLE and sue you
and ask for the recovery of the 3,000.
A: (JP)
Article 128. Visitorial and enforcement power.
The Secretary of Labor and Employment or his duly authorized
representatives, including labor regulation officers, shall have access
to employers 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 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.
Taken from the situation:

1.
2.
3.
4.
The claimant is a domestic helper (employee);

The claim is only 3,000 (did not exceed 5,000);
The claim arose from employer-employee rel.;
The claimant, who is no longer employed, does
not want to be reinstated.
So the Regional Director (RD) will try, hear and resolve,

and he will determine if the claimant is entitled to his/her
unpaid salary.
If RD will say yes, then he will make a decision in favour of
the claimant; If RD will say no, he will dismiss the
complaint.
The SOLE or his duly authorized representatives can visit

the establishment when regular work is being
undertaken.
Purpose: to determine if there are any violations of the
Labor Code, any labor law, wage orders or rules and
regulations issued by the SOLE pursuant thereto.
Q: The law speaks of Visitorial and Enforcement. Are
they both the same?
A: (JP) No.
Q: If there is a decision rendered by the RD under Art

129, what is the remedy of the aggrieved party?
Visitorial this is when the SOLE or his duly authorized

representative has access to the employers records and
premises at any time.
A: (Marvin) They can file an Appeal (not a motion for

reconsideration) under Art 223 of the Labor Code, with
the National Labor Relations Commission (NLRC) within 5
days from the receipt of the copy of the decision.
Enforcement this is when the SOLE or his rep will ask

the employer to comply with the findings or violations the
employer may have incurred.
Q: Since the judgement contains a monetary award,

what are the requirements to perfect the appeal?
Ex. If the employer did not comply with the minimum

wage order, the SOLE or his rep will issue a compliance
order to the employer to pay the underpaid wages.
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AY 2013-2014
Section 6. Payrolls. (a) Every employer shall pay his employees
by means of a payroll wherein the following information and data
shall be individually shown:
Attys Discussion:
The visitorial power would not be effective without the
enforcement. Thats why its called Visitorial
&Enforcement Power.
Take Note: Since the SOLE is only one, he would not have
time to inspect 1000+ establishments all over the country.
In the Philippines, the DOLE has established Regional
Offices nationwide; we also have an office in Cebu City. In
these Regional Offices they have a Labor Standard and
Enforcement Division (LSED), this is where we find the
Labor Inspectors, because the Regional Director cannot
also do the inspection himself, although he can do it, but
he can also delegate the power to the Labor Inspectors.
So the SOLE delegates the power to the Regional Director
(RD); The RD delegates the power to the Labor Insp. So
the Labor Inspector in most cases would be the
authorized rep of the SOLE and the RD, to inspect the
establishments.
These labor inspectors are Civil Service employees (Govt
Employees), they will visit the establishments and present
an ID and an Inspection Authority, signed by the RD.
The Inspection Authority will tell you the name of the
establishment and the date of inspection; it writes down
the parameters of the inspection.
B virtue of ART 128, they have access to the premises and
the employers records with the power to Copy the
records, at any time of the day or night. (Some
establishments are open at night, ex. Bars, BPOs)
Visitorial & Enforcement must be done during working
hours. If the establishment is closed, who will show them
the records, the Security Guard!?? Of course Not!
Q: So there is access to employment records. What is a
good example of an employment record for the
inspector to know whether the employer complied with
the law or not?
A: (JP)
(1) Payroll;
IRR Labor Code, Book III, Chapter X:
1.
2.
3.
4.
5.
6.
Length of time to be paid;

The rate of pay per month, week, day or hour piece, etc.;
The amount due for regular work;
The amount due for overtime work;
Deductions made from the wages of the employees; and
Amount actually paid.
XXX
The law requires an employer to keep and maintain a

payroll.
If the labor inspector looks at the payroll and there is a
discrepancy, it is a reliable proof to make a finding that
there was a violation.
Ex. If there were deductions not authorized by law then
the inspector can put it in his findings and he may order
the employer to comply.
(2) Employment Contracts of the workers;

(3) Service Agreements (ex. Security Agency, Janitors).
All these employee records under the law, must be kept
and maintained by the employer in the Main Office of the
company or Branch Office or the worksite where the
employees are regularly assigned to work.
So if you go to an office and there are Security Guards and
Janitors there who are not employees in the
establishment, the law requires that your agreement
(Service Agreement) with them, must be kept and
maintained in the place where they are working or where
they are regularly assigned.
Q: ART 128 says that, the Visitorial & Enforcement
power may be exercised by the SOLE or his rep as long as
an Employee-Employer relationship still exists. (when
you are no longer employed, the employer may no
longer keep your employment records)
When can we say that an employee is no longer
employed in an establishment?
A: (JP) His employment ends thru:
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AY 2013-2014
1. Expiration of Contract;
2. Termination;
3. Resignation.
(JEPPERSON!!!!) [we have the same name eh, na-mental

block siya so I had to startle him.. ]
In these cases, the SOLE can no longer exercise visitorial &

enforcement powers because ART 128 par. 2 clearly
states in cases where the relationship of employeremployee STILL EXISTS.. XXX
Take Note: Here, the SOLE no longer has jurisdiction, but
in cases where violations are found, he will not proceed
with the enforcement but he will have to refer the matter
to the appropriate branch of the NLRC.
Attys Discussion:
A: The employer will contest the notice, under ART 128

Par. (b).
Art 128, (b)
XXX except in cases where the employer contests the findings of the
labor employment and enforcement officer and raises issues supported
by documentary proofs which were not considered in the course of
inspection.
Note: The remedy of the employer is to present other

documentary proof not considered or not inspected.
Testimonial proof is NOT considered.
Q: If the employer contests the Notice of Inspection
Result but not in the manner prescribed by law. What
will the Regional Director do?
Another instance where there is no more employeremployee relationship is when in the first place no such
relationship ever existed, applying the (4) Fold Test.
A: (Jefferson) The RD will still issue a Compliance Order.
Q: Assuming the Employer-Employee relationship still

exists. In what piece of document will the labor
inspector appropriate his findings?
Q: If a compliance order is issued by the RD, ordering the

employer to comply. What is a remedy from an Order of
Compliance?
A: (Jefferson) It will be embodied in the Notice of

Inspection Result.
A: (Karen) Appeal to the SOLE.

Art 128, Par. (c)
So he bases his inspection on the employee records and

interviews the employees at random and in private (does
not interview the employer), at the end of the day after
the inspection, he will have to confront the employer and
say ex. Mr. Employer, you have not complied with #1
Minimum wage #2.. and so on.
After that, the Notice of Inspection Result will be placed in
a conspicuous place (ex. Entrance) for the employees to
see and read for them to know the findings of the
inspection.
A copy of the Notice will be given to the employer and the
employer will be given (5) days to raise any questions or
concern over the findings.
If he does not raise any questions, the Regional Director
will issue a Compliance Order or Order of Compliance,
directing the employer to comply with the violations.
Q: In case the employer does not agree with the findings
of the Notice of Inspection Result, what is his remedy?
An order issued by the duly authorized representative of the Secretary

of Labor and Employment under this Article may be appealed to the
latter. In case said order involves a monetary award, an appeal by the
employer may be perfected only upon the posting of a cash or surety
bond issued by a reputable bonding company duly accredited by the
Secretary of Labor and Employment in the amount equivalent to the
monetary award in the order appealed from.
The rules allow the employer to file a Motion for

Reconsideration, not later than (7) days from receipt of
the order of compliance. If he files a Motion for Recon
after (7) days but not later than (10) days then it shall be
considered as an Appeal to the SOLE.
For our purposes, the remedy is Appeal to SOLE.
Q: If the judgement contains a monetary award, does
the employer need to post a bond?
A: (Karen) Yes, he needs to post a cash or security bond.
The purpose is to secure the judgement in case the appeal
is found to be unmeritorious; it will guarantee the
workers, in whose favour the findings were made, to get
their money to prevent delay in payment.
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AY 2013-2014
Art. 112. Non-interference in disposal of wages. No employer shall
limit or otherwise interfere with the freedom of any employee to
dispose of his wages. He shall not in any manner force, compel, or
oblige his employees to purchase merchandise, commodities or
other property from any other person, or otherwise make use of any
store or services of such employer or any other person.
Q: From the decision of the SOLE, is there a remedy for

an Ordinary Appeal?
A: (Karen) There is none. It is appealed thru a Special Civil
Action to the CA under Rule 65, Rules of Court.
And of course after the CA, there is no other way of
appeal than to the SC under Rule 45, Rules of Court.
The employer is prohibited from interfering with how the

worker chooses to spend his money.
Attys Discussion:
The employee is given this freedom because he is the

owner of his wages. He worked for it, he must be given
the freewill to dispose of it as he pleases.
Not all inspections are complaint inspections. Some

inspections are routine inspections which are scheduled
in advance. There is also an Accident Investigation.
Q: Next Art 113. So what is the rule in 113, can the

employer deduct the employees wage?
The visitorial & enforcement power of the Labor Inspector

is not just limited to compliance of the Labor Code, it also
includes Occupational Safety and Health standards (ex.
fire exits, etc).
A: (Mel)
Article 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:
Theres also the Imminent Danger Inspection. (ex. the

building in USC is about to collapse)
(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;
Q: In Art 128, is it valid for the RD, who finds a violation

of labor standards, to issue a compliance order with an
award that is more than Php5000?
(b) For union dues, in cases 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.
A: (Karen) yes, the limit of 5000 does not apply to Art 128.
Art 128, Par (b)
XXX
Notwithstanding the provisions of Articles 129 and 217 of this Code to
the contrary, and in cases where the relationship of employeremployee still exists, XXX
GR: No employer, in his own behalf or in behalf of any

person, shall make any deduction from the wages of his
employees.
Exceptions: (MEMORIZE DAW!)
There is no more limit in the amount of award under Art

128.
TOPIC 7: WAGE PROTECTION PROVISIONS &

PROHIBITIONS REGARDING WAGES
With regards to the prescribed minimum wage, we want
to know the laws that protect the wages of the workers.
So that after a days work, they will get their days wage
(Fair days wage, for a fair days labor).
Q: What is Art 112?
A: (Mel)
Page 24
1. 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;
2. For union dues, in cases where the right of the
worker or his union to check-off has been
recognized by the employer (CBA) OR authorized
in writing by the individual worker concerned;
and
Right to Check-off- is a mechanism that
allows the employer to deduct the
employees wage an amount
corresponding to union dues.
3. In cases where the employer is authorized by law
or regulations issued by the Secretary of Labor
and Employment.

AY 2013-2014
nothing to prevent private respondents from cleaning the taxi units
themselves, if they wanted to save their P20.00.Car washing after a tour of
duty is a practice in the taxi industry, and is, in fact, dictated by fair play.
Q: Are there deductions required by law?

A: SSS, PAG-IBIG, Phil-Health.
No need to get the individual consent of the employees.
Q: Next, Article 114.
(July 16, 2013)
A: (May)
Art. 114. Deposits for loss or damage. No employer shall

require his worker to make deposits from which deductions shall be
made for the reimbursement of loss of or damage to tools,
materials, or equipment supplied by the employer, except when the
employer is engaged in such trades, occupations or business where
the practice of making deductions or requiring deposits is a
recognized one, or is necessary or desirable as determined by the
Secretary of Labor and Employment in appropriate rules and
regulations.
GR: No deduction from the deposits of an employee for

the actual amount of the loss or damage shall be made.
Exception: where the practice of making deductions or
requiring deposits is a recognized one; or is necessary or
desirable as determined by the Secretary of Labor and
Employment.
Q: Have you come across a SC ruling that declared
deductions as illegal?
Five J Taxi vs NLRC
FACTS:
Private respondents Domingo Maldigan and Gilberto Sabsalon were hired by
the petitioners as taxi drivers. Aside from the daily "boundary", they were
also required to pay P20.00 for car washing, and to further make a P15.00
deposit to answer for any deficiency in their "boundary," for every actual
working day.
ISSUE:
Whether or not the car wash payment is an illegal deduction as
contemplated in the Labor Code.
RULING:
On the matter of the car wash payments, the labor arbiter had this to say in
his decision: "Anent the issue of illegal deductions, there is no dispute that as
a matter of practice in the taxi industry, after a tour of duty, it is incumbent
upon the driver to restore the unit he has given to the same clean condition
when he took it out, and as claimed by the respondents (petitioners in the
present case), complainant(s) (private respondents herein) were made to
shoulder the expenses for washing, the amount doled out was paid directly
to the person who washed the unit, thus we find nothing illegal in this
practice, much more (sic) to consider the amount paid by the driver as illegal
deduction in the context of the law."
SC held that the amount doled out was paid directly to the person who
washed the unit, thus we find nothing illegal in this practice, much more to
consider the amount paid by the driver as illegal deduction in the context of
the law. Consequently, private respondents are not entitled to the refund of
the P20.00 car wash payments they made. It will be noted that there was
Q: If I own a jewellery business, as one of my employees

and your job is to handle with care and clean the
jewellery. Because of the value of the jewellery I require
you to make a deposit in case you damage the jewellery
so I can just deduct it from your deposit, is it a valid
deduction?
Nina Jewelry Mnufacturing of Metal Arts Inc. vs
Montecillo
FACTS:
On August 13, 2004, Nia Jewelry imposed a policy for goldsmiths requiring
them to post cash bonds or deposits in varying amounts but in no case
exceeding 15% of the latter's salaries per week. The deposits were intended to
answer for any loss or damage which Nia Jewelry may sustain by reason of the
goldsmiths' fault or negligence in handling the gold entrusted to them. The
deposits shall be returned upon completion of the goldsmiths' work and after
an accounting of the gold received.
Said respondents defied same policy and were considered constructively
dismissed by the company, who only alleged that they stopped reporting to
work. Respondents then filed complaint but same was dismissed by the Labor
th
Arbiter, only awarding them their 13 month pay. They then elevated their
th
complaint to the NLCR minus the already-won 13 month pay.
Applying Article 113 and 114 of the Labor Code, the CA ruled in favor and
awarding respondents. Hence this petition for review
ISSUES:
Whether or not the requirement of posting cash bonds or have the same
deducted from the workers salaries is proper.
RULING:
NO. While employers should generally be given leeways in their exercise of
management prerogatives, we agree with the respondents and the CA that in
the case at bar, the petitioners had failed to prove that their imposition of the
new policy upon the goldsmiths under Nia Jewelry's employ falls under the
exceptions specified in Articles 113 and 114 of the Labor Code.
While the petitioners are not absolutely precluded from imposing the new
policy, they can only do so upon compliance with the requirements of the law.
In other words, the petitioners should first establish that the making of
deductions from the salaries is authorized by law, or regulations issued by the
Secretary of Labor. Further, the posting of cash bonds should be proven as a
recognized practice in the jewelry manufacturing business, or alternatively, the
petitioners should seek for the determination by the Secretary of Labor through
the issuance of appropriate rules and regulations that the policy the former
seeks to implement is necessary or desirable in the conduct of business. The
petitioners failed in this respect. It bears stressing that without proofs that
requiring deposits and effecting deductions are recognized practices, or without
securing the Secretary of Labor's determination of the necessity or desirability
of the same, the imposition of new policies relative to deductions and deposits
can be made subject to abuse by the employers. This is not what the law
intends.
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AY 2013-2014
Article 117. Deduction to ensure employment. It shall be unlawful
to make any deduction from the wages of any employee for the
benefit of the employer or his representative or intermediary as
consideration of a promise of employment or retention in
employment.
Q: When can the employer withhold the employees

wage?
A: It is prohibited under Art 116.
Article 116. Withholding of wages and kickbacks prohibited. It shall
be unlawful for any person, directly or indirectly, to withhold any
amount from the wages of a worker or induce him to give up any
part of his wages by force, stealth, intimidation, threat or by any
other means whatsoever without the workers consent.
Q: Is there an exemption to the withholding of the

employers wage?
Attys Situation:
If I am the employer and I hire you provided that every
15th of the month I will deduct your salary a sum of Php50
and then you agreed and gave your consent.
Q: Is it a legal deduction?
A: Yes, under the Civil Code

Civil Code
Art 1706. Withholding of the wages, except for a debt due, shall not
be made by the employer.
Attys Situation:
Im your employer, you asked for a cash advance and you
promise to pay on the 15th of the month of August, is it a
debt? Yes, this is a contract of loan which you have to pay
on the 15th.
A: No, it is still illegal. Notwithstanding the employee

giving his consent, the stipulation for hiring is still illegal
for violating Art 117.
If it were otherwise, every employee would be subject to
abuse and exploitation. It would no longer be in
accordance with the Constitutional provision of
protection to labor.
Article 118. Retaliatory measures. It shall be unlawful for an
employer to refuse to pay or reduce the wages and benefits,
discharge or in any manner discriminate against any employee who
has filed any complaint or instituted any proceeding under this Title
or has testified or is about to testify in such proceedings.
Come august 15 I owe you your salary for services

rendered and you owe me your loan.
Q: Based on the situation. Can I withhold your salary and
deduct the amount as payment for your debt? If yes, is
there a legal basis?
Q: In what instance would an employee file a complaint

against the employer?
A: In cases of labor disputes like non-conformity with the
minimum wage, no overtime pay, and etc.
A: Yes, apply Art 1706, Civil Code. The law states debts
due, since in August 15 your debt is due as well as your
salary, then the employer can withhold the employees
salary to the extent of the amount owed.
Q: Would the answer be the same if you promise to pay
me in December and I withhold your salary in August?
Under the law, if you file a suit against the employer, they
cannot discriminate upon you by withholding you wage
and reducing you pay and benefits, etc.
A: No, because the employees debt is not yet due and

demandable in August.
Article 119. False reporting. It shall be unlawful for any person to

make any statement, report, or record filed or kept pursuant to the
provisions of this Code knowing such statement, report or record to
be false in any material respect.
Q: Is there any other exception?

A: 2nd Exception: If the employee gives his consent for the
withholding.
Q: Is there an obligation of the employer to keep and

maintain records of the employee?
A: Yes, under Art 128 (f) and IRR, Book III, Rule X, Sec. 6,
11 & 12.
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AY 2013-2014
Ex. The payroll if any person falsifies the records in the
payroll, he/she would be liable for violation of Art 119.
Q: Can you pay your workers in the form of promissory

notes and tokens if the employee gives his consent?
During inspections, the employer is supposed to show the

inspector the employee records. If the records are found
to be falsified then the employer shall be liable under Art
119.
A: No, it is expressly prohibited under Art 102, Labor

Code.
ART. 102. Forms of payment. -No employer shall pay the wages of
an employee by means of promissory notes, vouchers, coupons,
tokens, tickets, chits, or any object other than legal tender, even
when expressly requested by the employee.
Q: What is the liability of the employer who violates the

provisions of the Labor Code?
Labor Code: BOOK SEVEN
Title I: PENAL PROVISIONS AND LIABILITIES
Article 288. Penalties. Except as otherwise provided in this Code, or
unless the acts complained of hinge on a question of interpretation
or implementation of ambiguous provisions of an existing collective
bargaining agreement, any violation of the provisions of this Code
declared to be unlawful or penal in nature shall be punished with a
fine of not less than One Thousand Pesos (P1,000.00) nor more than
Ten Thousand Pesos (P10,000.00) or imprisonment of not less than
three months nor more than three years, or both such fine and
imprisonment at the discretion of the court.
Payment of wages by check or money order shall be allowed (1) when such
manner of payment is customary on the date of effectivity of this Code, or (2)
is necessary because of special circumstances as specified in appropriate
regulations to be issued by the Secretary of Labor and Employment or (3) as
stipulated in a collective bargaining agreement.
Q: Can an employer pay his employee in a form of a

check?
A: GR: No, because a check is not considered legal tender.
Exception: 2nd par of Art 102:
1. When such manner of payment is customary on
the date of the effectively of the Labor Code;
2. When it is necessary in special circumstance as
specified in appropriate regulations issued by the
SOLE; and
3. As stipulated in the CBA.
Q: In what form should the employees wage be paid?

A: (Clea) it must be paid in legal tender/currency. (Art
1705, Civil Code)
Legal tender is the currency legally accepted in the Phil;
notes and coins issued by the Central Bank (BSP) are legal
tender. Cash is considered legal tender.
Q: Is there any instance the employer can pay the
worker partly cash and partly in kind?
Q: There are appropriate regulations issued by the SOLE,

but they have requisites. What are these requisites?
A: (Tj) Conditions/Requisites for payment of wages thru
checks:
A: GR: No;
1.
Exception: there are instances where the SC wherein such

is allowed, such as payment for deductible facilities
(Meals, etc). In effect you are allowed to pay the workers
partly cash and partly in kind.
2.
3.
Congson vs NLRC
RULING:
Petitioner's practice of paying the private respondents the minimum wage by
means of legal tender combined with tuna liver and intestines runs counter
to the above cited provision of the Labor Code. The fact that said method of
paying the minimum wage was not only agreed upon by both parties in the
employment agreement but even expressly requested by private
respondents, does not shield petitioner. Article 102 of the Labor Code is
clear. Wages shall be paid only by means of legal tender. The only instance
when an employer is permitted to pay wages informs other than legal
tender, that is, by checks or money order, is when the circumstances
prescribed in the second paragraph of Article 102 are present.
4.
There is a bank or other facility for encashment within a

radius of one (1) kilometer from the workplace;
The employer or any of his agents or representatives does
not receive any pecuniary benefit directly or indirectly from
the arrangement;
The employees are given reasonable time during banking
hours to withdraw their wages from the bank which time
shall be considered as compensable hours worked if done
during working hours; and
The payment by check is with the written consent of the
employees concerned if there is no collective agreement
authorizing the payment of wages by bank checks.
Attys Discussion:
Wage paid in check is somewhat convenient example in
cases where you are to receive 15 days worth of wage
which is a lot of money; there is a tendency that it might
Page 27

AY 2013-2014
Art. 103. Time of payment. - Wages shall be paid at least once every
two (2) weeks or twice a month at intervals not exceeding sixteen
(16) days. If on account of force majeure or circumstances beyond
the employers 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.
No employer shall make payment with less frequency than once a
month.
get stolen if it is in cash. And if you are in a construction

company, there is a danger of loss of the money.
Q: Can the employer pay the employees wage thru
banks? If yes, what are the requisites?
A: (TJ) Yes, the employer can pay wages thru banks under
RA 6727: Wage Rationalization Act, provided:
RA 6727
Section 7. Upon written permission of the majority of the employees

or workers concerned, all private establishments, companies,
businesses, and other entities with twenty five (25) or more
employees and located within one (1) kilometer radius to a
commercial, savings or rural bank shall pay the wages and other
benefits of their employees through any of said banks and within the
period of payment of wages fixed by Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the Philippines.
Section 8.Whenever applicable and upon request of a concerned
worker or union, the bank shall issue a certification of the record of
payment of wages of a particular worker or workers for a particular
payroll period.
Therefore the requisites are:

1.
2.
3.
4.
Upon written permission of the majority of the

employees or workers concerned;
All private establishments, companies, businesses, and
other entities with at least (25) or more employees;
Located within (1) kilometer radius to a commercial,
savings or rural banks shall pay wages or benefits of
their employees through any of the banks;
Within the period of payment of wages fixed by PD
442, the Labor Code, as amended.
Attys Situation:
USC pays my salary only once a month, they pay my full
salary every 15th even if I havent finished the whole
month.
This is valid because the provision protects the employee
because he needs the money. In the above case, the
money is already supplied or paid in advance by the
employer, which is more than compliance.
Q: Based on the above situation, my wage has already
been paid in advance. If I become absent during the 2nd
half of the month, can the employer validly deduct my
next salary because of my absences?
A: (TJ) yes, since the employer already paid the full salary,
he can validly deduct the next salary minus the number of
days the employee was absent. This is in conformity with
the principle of Fair days wage for a fair days labor.
If you are absent they can deduct the amount
corresponding to the number of days you were absent.
Q: What are other requisite for payment thru ATMs?
Q: What about ATM (Automated Teller Machine)? Does

DOLE allow payment of wages thru ATM?
A: (TJ)
A: (TJ) Yes, DOLE allows payment thru ATMs; they are

usually found in banks or malls.
(2) There should be no additional expenses and no

diminution of benefits and privileges as a result of the
ATM system of payment. (ex. no service charges)
Q: What are the requisites for valid payment of wages

thru ATM?
Q: Is it required that the employer must get the consent

of all employees concerned or just the majority?
A: (TJ) Same Requisites as banks (above mentioned).

(1) And the employer must be within the time/frequency
of payment under PD 442.
Q: Under the Labor Code, how frequently must the
wages be paid?
A: (TJ)
A: Employees concerned only

Q: What is the reason for the prescribed frequency of
payment (twice/week; at intervals not exceeding 16 days)?
A: (Tristan) the workers need the money for his daily
sustenance.
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AY 2013-2014
Q: Is there an instance where there could be payment of
wages once every month based on the law?
A: Yes, under the IRR: Rule VIII, Book III, Sec 3
A: No, there is no fixed working day under the Labor

Code. It is the employer who fixes the working days of the
employee under their Management Prerogative.
Q: What is the normal work week in the Philippines
under the Labor Code?
Rule VIII, Book III, Sec 3

Sec. 3. Time of Payment.
(a) Wages shall be paid not less often than once every two (2) weeks
or twice a month at intervals not exceeding sixteen (16) days, unless
payment cannot be made with such regularity due to force majeure
or circumstances beyond the employers control, in such cases the
employer shall pay the wages immediately after such force majeure
or circumstances have ceased.
A: The normal work week consists of 6 days/week, it can

be consecutive or interrupted. The 7th day is always a rest
day.
(b) In case of payment of wages by results involving work which

cannot be finished in two (2) weeks, payment shall be made at
intervals not exceeding sixteen (16) days in proportion to the
amount of work completed. Final settlement shall be made
immediately upon completion of the work.
A: No, it depends on the employer.
Q: Is the rest day always on a Sunday?
The rest day must consist of 24 consecutive hours. This is

mandated if the employer has 6 consecutive normal work
days.
General Rule: at least every 2 weeks or twice a month at

intervals not exceeding 16 days.
Exception: in cases of force majeure or in circumstances
beyond the employers control, wherein the 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 circumstance have ceased.
Q: If the employer only operates 4 days a week, does he

need to comply with the 24 consecutive hour rest day?
A: there is no more need, because the total work week
does not consist of 6 days/week. You have more than
enough time to rest.
The purpose of the rest day is for the worker to spend
time for himself and for his family; the employer need
time to rest after 6 days of work.
(Sir: TIENE SENTIDO! it makes sense!)
Q: Does the Labor Code fix when the hours of work start
in a day?
TOPIC 9: CONDITIONS OF EMPLOYMENT

Q: What are the normal hours of work under the law?
A: No. it is the prerogative of the employer.
A: (Tristan)
Q: What about the hours of work for children?
ART. 83. Normal hours of work. -The normal hours of work of any
employee shall not exceed eight (8) hours a day.
A: Under RA 9231:
It may be less but must not be more than (8) hours

otherwise you must be given overtime pay. In the Phil, the
minimum wage is based on an (8) work day.
Sec. 12-A. Hours of Work of a Working Child. Under the exceptions

provided in Section 12 of this Act, as amended:
1.
Q: If you do not work for the entire (8) hours do you

expect to get the full days wage?
A: No, you will only be paid proportionate to the number
of hours you worked under the principle of A fair days
wage for a fair days labor or No work, no pay.
Q: Doe the Labor Code prescribe the working day of the
workers in a week?
Page 29
2.
3.
A child below fifteen (15) years of age may be allowed to

work for not more than twenty (20) hours a week:
Provided, That the work shall not be more than four (4)
hours at any given day;
A child fifteen (15) years of age but below eighteen (18)
shall not be allowed to work for more than eight (8) hours
a day, and in no case beyond forty (40) hours a week;
No child below fifteen (15) years of age shall be allowed to
work between eight o'clock in the evening and six o'clock
in the morning of the following day and no child fifteen
(15) years of age but below eighteen (18) shall be allowed

AY 2013-2014
to work between ten o'clock in the evening and six o'clock
in the morning of the following day."
that such personnel work for six (6) days or forty-eight (48) hours
which case they shall be entitled to an additional compensation of at
least thirty percent (30%) 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.
Summary:
a. Below 15 years maximum (20) hours/week &
maximum of (4) hours per day;
b. 15 years above but less than 18 years maximum
(40) hours/week & maximum (8) hours/day;
c. Below 15 years cannot work between 8:00pm
6:00am;
d. 15 years above but less than 18 years cannot
work between 10:00pm 6:00am.
If these orders are violated, the employer shall face
criminal liabilities for violation of Worst forms of child
labor.
Q: If you do not qualify with the above criteria for a (5)

day work week, what is your normal work week?
A: 8 hours/day; 6 days/week.
Q: When do health personnel enjoy a (6) day work
week?
A: where exigencies of the service require such personnel
to work for (6) days/week.
Q: What about domestic workers?
Generally (with no qualifications):
A: Domestic workers are required to have (8) hours of

aggregate rest hours/day under RA 10361.
Normal workers have a (6) day normal workweek;
Sec 20.Daily Rest Period. The domestic worker shall be entitled to

an aggregate daily rest period of eight (8) hours per day.
So the normal working hours for a domestic worker is (16)

hours/day.
Q: If you hire a domestic helper who is (16) years old,
what are her prescribed hours of work?
Health Personnel have a (5) day normal workweek.
(July 23, 2013)

A: (Janjo) According to RA 9231 (as stated above), a child

who is (15) years and above but less than (18) years, his
normal working hours must be (8) hours/day max & (40)
hours/week max.
There is an inconsistency between RA 9231 & RA 10361 to
the extent that RA 10361 only applies to persons who are
not minors.
Q: If there is a clinic located in a municipality with a

population of 500,000 and a 10 bed capacity. What is the
prescribed normal work week?
A: (May) 6 days/week. Because according to the Labor
Code, if the population of the municipality is 1M OR abed
capacity of 100 the normal workweek would be 5
days/week.
Based on the situation provided, since the clinic does not
meet the qualifications of a normal 5 day workweek for
health personnel then the clinic should follow the regular
work week for regular employees which is 6 days/week.
Q: The normal work week is (6) days/week. What

provision in the Labor Code that provides for a shorter
workweek less than (6) days?
A: (Janjo)
Q: What happens on the 7th day?
Art. 83. Hours of Work - XXX

Health personnel in cities and municipalities with a population of at
least one million (1,000,000) OR in hospitals and clinics with a bed
capacity of at least one hundred (100) shall hold regular office
hours for eight (8) hours a day for five (5) days a week, exclusive of
time for meals, except where the exigencies of the service require
A: Rest day. It does not necessarily mean on a Sunday, the

fixing of the rest day will always depend on the
prerogative of the employer.
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AY 2013-2014
Art. 91. Right to Weekly Rest Day
concept can be adjusted accordingly in cases where the

normal workweek of the firm is (5) days.
(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 (24) consecutive hours after every six (6)
consecutive normal work days.
The normal working hours in a (5) day compressed

workweek is (9.6) hours.
(b) The employer shall determine and schedule the weekly rest day
of his employees subject to collective bargaining agreement and to
such rules and regulations as the Secretary of Labor 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. (to accommodate members of the 7th day
Adventists and others
The worker will not be entitled to overtime pay, unless,

the daily working hours exceeds (12) hours or the normal
weekly working hours exceeds (48) hours.
Q: Does the employee waive his entitlement to overtime
pay in a compressed work week?
A: Yes, he is deemed to have waived it.
IRR: Rule III, Book III

Section 2. Business on Sundays/Holidays. All establishments and
enterprises may operate or open for business on Sundays and
Holidays provided that the employees are given the weekly rest day
and the benefits due them under the law.
The waiver is not illegal because the compressed work

week scheme provides that the employee entered into
this agreement voluntarily.
Section 3. Weekly Rest Day. Every employer shall give his

employees a rest period of not less than (24) hours after every 6
consecutive normal work days.
Q: What benefit/s do the workers derive from a

compressed work week?
Section 4. Preference of employee. The preference of the employee

as to his weekly day of rest shall be respected by the employer if the
same is based on religious grounds. The employee shall make known
his preference to the employer in writing at least seven (7) days
before the desired effectivity of the initial rest day so preferred.
A: the employee would enjoy extras days of rest; the

employee would also enjoy less daily expenses such as
transpo, meal, etc. this would be in substitute for
overtime pay.
Where, however, the choice of the employees as to their 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
their choice for at least two (2) days in a month.
The employer can choose not to respect the preference of

the employee if it will inevitably result in prejudice and
obstruction of the operations of work.
Q: Can the employer change the rest day of the
employee?
A: (May) Yes, provided that the employer inform the
employee at least (7) days prior to the change of
schedule.
As a rule, overtime pay cannot be waived, however if

there is a substitute such as the ones mentioned above,
so the waiver can be considered valid.
Q: Does it require the individual consent of the workers
or the majority?
A: it requires an express and voluntary agreement of the
majority of the covered employees or their duly
authorized representatives. The minority will have to
follow the compressed work week scheme, they have no
choice.
Q: Does the compress work week scheme apply to all
establishments without any exception?
Q: What is a compressed workweek?
A: (May)
A: It is an alternative arrangement whereby the normal

workweek is reduced to less than (6) days but the total
number of normal work hours per week shall remain at
(48) hours. The normal workday is increased to more than
(8) hours without corresponding overtime premium. This
Page 31
Compressed Workweek Schemes

(DOLE Dept. Advisory No. 2, Series of 2004)
This Advisory may be used in all establishments EXCEPT those in the
(1) Construction industry; (2) health services; (3) occupations
requiring heavy manual labor; or (4) occupations or workplaces in
which workers are exposed to airborne contaminants, human
carcinogens, substances, chemicals or noise that exceed threshold

AY 2013-2014
limit values or tolerance levels for an eighthour workday as
prescribed under existing Occupational Safety and Health Standards
(OSHS)
payments made by the company pursuant to it have

ripened into benefits enjoyed by them.
Q: If the establishment adopts a compressed workweek,

can they change it to a normal workweek?
To ripen into benefits, the following requisites must

concur:
A: (May) Yes, the compressed workweek is only

temporary and they may choose to change it to a normal
workweek if the majority agrees. When it becomes a
normal workweek they shall already be entitled to
overtime pay.
1. It should have been practiced over a long period of

time;
2. It must be shown to have been consistent and
deliberate;
3. It must not be made through an error in the
interpretation of the law.
Adoption of the CWW scheme shall in no case result in diminution of

existing benefits. Reversion to the normal eighthour workday shall
not constitute a diminution of benefits. The reversion shall be
considered a legitimate exercise of management prerogative,
provided that the employer shall give the employees prior notice of
such reversion within a reasonable period of time.
Q: What is the principle of Non-Diminution of Benefits?

A: (May) The employer cannot take back or reduce
unilaterally the benefits he has given to the employee.
Attys Discussion:
For those supplements or employment benefits granted
before the promulgation of the Labor Code apply Art 100
of the Code.
For benefits and supplements granted after the
promulgation of the Labor Code, you have to make a
distinction.
1. If it is granted in an employment contract then
you cannot withdraw the benefits simply because
doing so would violate the contract;
2. If it is granted in a company policy then you also
just cannot withdraw it because company policies
form part of every employees contract;
3. If it is granted by way of company practice.
Company Practice there is no expressed
policy but through a (1)long period of
time the company has been granting
these benefits (2)consistently,
deliberately and (3)does not involve an
error in the interpretation of law.
These benefits under company practice has ripen
into a vested right that cannot be merely
unilaterally withdrawn, diminished or reduced
without violating the principle of non-diminution
of benefits.
Article 100. Prohibition against elimination or diminution of

benefits. Nothing in this Book shall be construed to eliminate or in
any way diminish supplements, or other employee benefits being
enjoyed at the time of promulgation of this Code .
Time of promulgation of this code: May 1, 1974, the Labor

Code took effect on Nov. 1, 1974.
Q: What are supplements?
A: Supplements constitute extra remuneration or special
privileges or benefits given to or received by the laborers
over and above their ordinary earnings or wages.
(Atok-Big Wedge Assoc v Atok-Big Wedge Co, 97 Phil 294)
Q: What about supplements provided by the employer
after the promulgation of the Labor Code, will the
employer be able to reduce those benefits?
A: (May) No, it would still violate the prohibition of NonDiminution of Benefits.
Q: What are the requisites under this principle of NonDiminution of benefits?
A: The application of the principle presupposes that a
company practice, policy and tradition favorable to the
employees has been clearly established; and that the
Those who are working, your benefits are sourced from

the CBA, employment contract, company policy and
company practice.
This principle prevents the employer from changing his
mind and unilaterally withdraw, reduce or diminished
benefits.
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AY 2013-2014
Q: Is there a difference between Overtime Pay and
Premium Pay? Are they Supplements or Facilities?
TOPIC 10: MINIMUM LABOR STANDARDS

BENEFITS
A: They are Supplements; they are added remuneration

on top of the basic wage.
Q: If an employee works for more than (8) hours, is he

entitled to compensation?
Overtime Pay is additional compensation given to an

employee who works beyond (8) hours.
A: (Bop2x aka The Best)
Premium Pay is additional compensation given to an

employee who works on a Holiday or Rest Day for the first
(8) hours.
Yes, if the employee works for more than (8) hours he is

entitled to overtime pay
Q: How much is the overtime rate?
Q: What is this rule that under time not offset by

overtime?
Labor Code
Article 87. Overtime Work. Work may be performed beyond eight (8)
hours a day provided that the employee is paid for the overtime work an
additional compensation equivalent to his regular wage plus at least 25%
thereof. Work performed beyond eight hours on a holiday or rest day shall
be paid an additional compensation equivalent to the rate of the first eight
hours on a holiday or rest day plus at least 30% thereof.
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.
The overtime rate will depend on when the overtime

work is rendered.
Attys Situation:
Yesterday you only worked for 4 hours, today you work
for 12 hours. Are you entitled to overtime pay? YES; For
how many hours? Still 4 hours even though he only
worked for 4 hours yesterday.
If the OT is rendered on a Regular Working day, the

employee is entitled to an additional compensation
equivalent to the amount of his regular wage plus (25%)
thereof.
Yesterday, the employee cannot get his full days wage

because he only worked for 4 hours. He will only be
compensated for the 4 hours of work he rendered.
(Remember Fair days wage for a fair days labor)
If the OT is rendered on a Holiday or a Rest Day, the

employee is entitled to an additional compensation
equivalent to the amount of his regular wage plus (30%)
thereof.
National Shipyard and Steel Corp vs CIR
Overtime compensation is additional pay for services or
work rendered or performed in excess of (8) hours a day by
employees or laborers in employment covered by eight hour
labor law (now Art 87) and not exempt from its requirements.
It is computed by multiplying the overtime hourly rate by the
number of hours worked in excess of (8)
Computation:
Ex.
Today, the employee is entitled to OT for 4 hours. Of

course as previously discussed, OT would depend if it was
rendered on a regular day or on a holiday or rest day.
Undertime cannot be offset by overtime because
undertime hours represent only the employees hourly
rate of pay and the appropriate overtime premium such
that, not being equal of value, offsetting the undertime
hours against the OT hours would result in undue
deprivation of the employees overtime premium.
Php327 / 8 hours = Php40/hr.
If he renders (1) hour overtime on a Regular working day?

Php40 + 10(25%) = Php50/hr
If he renders it on a Holiday or Rest day?
Php40 + 12(30%) = Php52/hr
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AY 2013-2014
Article 93. Compensation for rest day, Sunday or holiday work.
Q: How many regular holidays do we have in the

Philippines?
XXX
Work performed on any special holiday shall be paid an additional
compensation of at least thirty percent (30%) of the regular wage of
the employee. Where such holiday work falls on the employees
scheduled rest day, he shall be entitled to an additional
compensation of at least (50%) of his regular wage.
A: 12 Regular Holidays
The Administrative Code of the Philippines
(EO 292)
SEC. 26. Regular Holidays and Nationwide Special Days. (1) Unless
otherwise modified by law, order, or proclamation, the following
regular holidays and special days shall be observed in the country:
(a) Regular Holidays
1.
2.
3.
4.
5.
6.
New Year's Day - January 1

Maundy Thursday - Movable Date
Good Friday - Movable Date
Eidul Fitr - Movable Date (Muslim Holiday)
Eidul Adha - Movable Date (Muslim Holiday)
Araw ng Kagitingan (Bataan and Corregidor Day) - Monday
nearest April 9
7. Labor Day -Monday nearest May 1
8. Independence Day - Monday nearest June 12
9. National Heroes Day - Last Monday of August
10. Bonifacio Day - Monday nearest November 30
11. Christmas Day - December 25
12. Rizal Day - Monday nearest December 30
XXX
If he works OT on that day, he gets an additional (30%)

based on his hourly rate.
Q: Assuming the next day is declared a Regular Holiday,
if the employee does not work on that day, does he get
paid? If yes how much?
A: Yes, he shall be paid an amount equivalent to his full
days wage. This wage is called Holiday Pay.
Q: If the employee works on a Regular Holiday, how
much does he get paid?
A: He shall be entitled to Double Pay according to
Article 94 (b).
Q: When is holiday pay given?
(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 XXX
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
XXX
So if your regular daily wage is Php327 then x2. The first

Php327 corresponds to your Holiday Pay Premium; the
second Php327 corresponds to your Regular Daily rate.
All in all it is Php654.
Q: If there are (2) Regular Holidays falling on the same
day, and the worker does not work, does he get paid?
How much?
The employee gets paid his holiday pay during Regular

Holidays even if he does not work on that day.
Q: This August 6 is a Special Holiday (Cebu Province
Charter Day). Do employees get paid Holiday pay even if
they do not work on Special Holidays?
A: Yes, he gets paid twice his Holiday Premium. (200%)
A: No, the employee will not be paid Holiday Pay if he

does not work on a Special Holiday.
A: He gets paid twice his Holiday Premium plus his Regular

Daily Rate for the first 8 hours. (300%)
Q: If he works on a Special Holiday for the first (8) hours

does he get paid?
Q: If a Regular Holiday falls on a Sunday which is the

employees Rest day, how much does he get paid if he
does not work?
A: Yes, aside from his daily wage, since it is a Special

Holiday, he shall be entitled to an additional (30%)
Premium Pay.
Q: What if he works on that day?
A: he gets paid his Holiday Premium only. (100%)
Page 34

AY 2013-2014
IRR, Book III, Rule IV
Q: What if he works on a Regular Holiday falling on his

Rest Day?
Section 1. Coverage. This rule shall apply to all employees EXCEPT:
A: You get paid (1) his Holiday Premium; plus (2) his
Regular Daily Rate; plus (3) an additional (30%) premium
pay for working on a Rest Day. (230%)
(a) Those of the government and any of the political subdivision,

including government-owned and controlled corporation;
Q: When is an employee entitled to a Service Incentive

Leave?
(c) Domestic helpers and persons in the personal service of another;
(b) Those of retail and service establishments regularly employing

less than ten (10) workers;
(d) Managerial employees as defined in Book Three of the Code;

(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.
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 (5) 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.
Q: What about Service Incentive Leave, is it applicable to

all establishments?
A: (Jorj) No, there are exceptions according to IRR, Book
III, Rule V.
(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.
IRR, Book III, Rule V

Section 1. Coverage. This rule shall apply to all employees EXCEPT:
An employee is entitled to (5) days with pay Service

Incentive Leave (SIL) when he has rendered at least (1)
year of service.
(a) Those of the government and any of its political subdivisions,

including government-owned and controlled corporations;
(b) Domestic helpers and persons in the personal service of another;
Q: For what purpose can you use the SIL?
(c) Managerial employees as defined in Book Three of this Code;
A: for any purpose, like vacation.
(d) Field personnel and other employees whose 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;
Q: If the employee does not avail of the SIL does he

forfeit it or is it commutable to cash?
A: Service Incentive Leave is commutable to cash.
(e) Those who are already enjoying the benefit herein provided;
(f) Those enjoying vacation leave with pay of at least five days; and
IRR, Book III, 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.
Q: When is the cash equivalent paid to the worker?
(g) Those employed in establishments regularly employing less than

ten employees.
Q: REVIEW: For domestic workers, what are their normal

hours of work?
A: (Bop2x) at the end of the year.
A: (Jorj) 16 hours, according to RA 10361 Kasambahay

Law, they are given a total of 8 hours of rest per day.
Q: Are there establishments exempted from paying

Holiday pay?
Q: What are Service Charges?
A: (Jorj) Yes, according to IRR, Book III, Rule IV.
A: (Jorj) Service Charges are charges paid to employees

working in Hotels, Motels and similar establishments
engaged in service.
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Q: Are establishments compelled by law to collect
Service Charges?
A: (Demi) Congress.
Q: Do we have an existing law passed by Congress that
fixes the Regular Holidays?
A: No, they are no compelled, it is their prerogative.

Q: If they do decide to collect Service Charges, how is
this treated by law?
A: EO 292, Chapter 7, Sec.26 as amended by RA 9177

Q: Can the President of the Phil move the Regular
Holiday to another date?
Labor Code
Article 96. Service charges. All service charges collected by hotels,
restaurants and similar establishments shall be distributed at the
rate of eighty-five percent (85%) for all covered employees and
fifteen percent (15%) 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 considered
integrated in their wages.
IRR, Book III, Rule VI
Section 3. Distribution of service charges. All service charges
collected by covered employers shall be distributed at the rate of
85% for the employees and 15% for the management. The 85% shall
be distributed equally among the covered employees. The 15% shall
be for the disposition by management to answer for losses and
breakages and distribution to managerial employees at the
discretion of the management in the latter case.
Q: The (15%) share for management is intended for what

purpose?
A: (Demi) Yes, EO 292 confers upon the President to move

the date of Regular Holidays provided a proclamation is
made (6) months prior to the changing of the date.
By mere proclamation the President can change the date
of a Regular Holiday, but for historical purposes usually
the President does not change the date.
TOPIC 11: OTHER SPECIAL BENEFITS

Q: What is this so called 13th month pay? Under what
law?
A: (Demi) under PD 851, as amended.
PD 851
A: it shall be for the disposition by management to

answer for losses and breakages and distribution to
managerial employees.
Section 1. All employers are hereby required to pay all their rank-file
employees a 13th month pay not later than December 24 of every
year. With the removal of the ceiling P1, 000.00 all rank-andfile
employees are now entitled to a 13th month pay regardless of the
amount of basic salary that they received in a month, such
employees as entitled to the benefit regardless of their designation
or employment status and irrespective of method by which their
wages are paid provided that they have worked for at least 1 month
during the calendar year.
For example a waiter in a restaurant breaks a glass, so

instead of running after the pocket of the employee to
pay for the breakage they will just get the money from
the 15% share of the service charge.
The employer is required to pay his employees their 13th

month pay, not later than December 24 of that year.
Q: How is the (85%) divided?

A: it shall be divided equally among the covered
employees.
Q: What is the purpose of paying the 13th month pay not

later than Dec 24?
This does not include managerial employees, this applies

only to rank & file employees.
A: in order to enable the workers to properly celebrate

Christmas and New Year.
Q: Are officers and members of the managerial staff

entitled to Service Charges?
Q: The 13th month pay under the law is given to what

kind of employees?
A: (Jorj) No.
A: To rank-and-file employees. Managers and supervisors

are not included in the 13th month pay, however, there is
Q: Who has the power to fix Regular Holidays under our

existing laws?
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AY 2013-2014
nothing that prevents the employer to pay their managers
and supervisors 13th month pay if they so desire.
But for purpose of the minimum standards benefits, 13th
month only covers rank-and-file employees. So, there is a
need to know who managerial employees are and who
rank-and-file employees are.
Q: Who are Managerial Employees?
A: As used herein, "Managerial Employees" refer 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. (Art 82, Labor Code)
So the employer would compute how many days have

you worked and paid in January, how many days have you
worked and paid in February, and so on.. to determine
what the employee earned. If the employee was on Study
leave with pay in April, he did not earn anything.
Q: Assuming the employee worked for the entire
calendar year, then how much would he get paid for his
13th month?
A: If he works for the entire year, mathematically he gets
paid his 13th month pay equivalent to his 1 month salary.
Q: Who are excluded from paying their employees their
13th month pay?
A: Exempted Employers:
Attys Discussion:
a. government and any of its political subdivisions

including GOCC (because they have their own 13th
month pay law);
b. employers already paying their employees a 13th
month pay or its equivalent;
c. employers of household helpers and persons in
the personal service of another in relation to such
workers;
d. employers of those who are paid on purely
commission, boundary or task basis and those
who are paid a fixed amount for performing
specific work.
They are those who lay down and execute management

policies. Those not falling under this definition, we classify
them as rank-and-file employees.
Q: Are the rank-and-file employees entitled to the 13th
month pay regardless of their salary?
A: (Demi) Yes, regardless of salary.
So even if the rank-and-file earns Php100,000/month he is
still entitled to a 13th month pay
Q: Is there a minimum length of service for a rank-andfile employee to avail of the 13th month pay?
Q: If the employee works for only 6 months, is he

entitled to 13th month pay?
A: (Demi) they are required to have worked for at least (1)

month during the calendar year. (Sec.1, PD 851)
A: (April) Yes, but not in full. He will be getting an amount

proportionate to his 6 months of service.
So if an employee is employed only for 2 weeks, he is not

entitled to 13th month pay.
Q: If an employee is terminated because he

misappropriated company money, is he entitled to 13 th
month pay?
Q: How much is the 13th month pay under the law?

PD 851
Sec. 4. The minimum of the 13th month pay required by law shall
not be less than 1/12 of the total basic salary EARNED by an
employee within a calendar year. Earned because it is possible that
the employee has used his vacation leave, leave without pay which
should not be counted. The employer can provide for more if he so
desire.
A: (April) the law is silent on this matter and there is no

forfeiture provision under the 13th pay law. So since the
law is silent, construe in favour of labor. In this case, the
employee is still entitled to 13th month pay.
Remember it is 1/12 of the basic salary EARNED in a

calendar year.
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Q: If an employee resigns, will he be entitled to a 13 th
month pay?
A: to lend support to his wife during her period of

recovery and/or the nursing of the newly born child.
A: Yes, as long as he has rendered at least (1) month of

service.
Q: What is meant by the term cohabit/cohabitation?

A: Cohabiting refers to the obligation of the husband
and wife to live together.
Q: What is Paternity Leave?

A: Under RA 8187 Paternity Leave Act of 1996
Paternity Leave refers to the leave credits granted to
a married male employee to allow him to earn
compensation for seven (7) working days without
reporting for work, provided that his spouse has
delivered a child or had a miscarriage or an abortion for
the purpose of lending support to his wife during her
period of recovery and/or the nursing of the newly born
child.
Q: Is this (7) day Paternity Leave commutable to cash if

not availed of?
A: No. under RA 8187 Sec 7, RIR.
Section 7. Non-commutation of benefits. In the event that paternity
leave benefit is not availed of, said leave shall NOT be convertible
to cash.
Q: Is there a criminal liability on the part of the employer

if he refuses to provide the male employees their
Paternity Leave?
Paternity leave is equivalent to a (7) day leave with pay

given to any married male employee for the first (4)
deliveries or miscarriages of his lawful spouse.
RA 8187
Section 5. Any person, corporation, trust, firm, partnership,
association or entity found violating this Act or the rules and
regulations promulgated thereunder shall be punished by a fine not
exceeding Twentyfive thousand pesos (P25,000) or imprisonment of
not less than thirty (30) days nor more than six (6) months. XXX
The male employee does not need to render a minimum

length of service before he can avail of the Paternity
Leave.
Q: What are the requisites for a male employee to avail
of the Paternity leave?
Q: When is the qualified male employee entitled to

paternity leave? Is it before, during or after the delivery
or miscarriage?
Revised Implementing Rules
Revised Implementing Rules (Series of 1996)
Section 5. Availment. Paternity leave benefits shall be granted to

the qualified employee AFTER the delivery by his wife, without
prejudice to an employer allowing an employee to avail of the
benefit before or during the delivery; provided, that the total
number of days shall not exceed seven (7) days for each delivery.
Section 3. Conditions to entitlement of paternity leave

benefits. A married male employee shall be entitled to
paternity benefits provided that:
a.
b.
c.
d.
he is an employee at the time of delivery of his child;

he is cohabiting with his spouse at the time she gives
birth or suffers a miscarriage;
he has applied for paternity leave in accordance with
Section 4 hereof; and
his wife has given birth or suffered a miscarriage.
GR: The employee can avail of the Paternity Leave after

the delivery or miscarriage;
Exception: if the employee allows the male employee to
avail of the leave before or during the delivery.
The spouse mentioned in this section must be the lawful

spouse; the male employee must be lawfully married.
Q: What benefits are provided for in the Domestic

Adoption Act (RA 8552)?
Spouse refers to the lawful wife. For this purpose,

lawful wife refers to a woman who is legally married to
the male employee concerned. (Sec.1, RIR 1996)
A: (JEPERSON!)
IRR of RA 8552
Section 34. Benefits. The adoptive parents shall, with respect to the
adopted child, enjoy all the benefits to which biological parents are
entitled. Maternity and paternity benefits and other benefits given
Q: What is the purpose of Paternity Leave?
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AY 2013-2014
to biological parents upon the birth of a child shall be enjoyed if the
adoptee is below seven (7) years of age as of the date the child is
placed with the adoptive parents thru the Pre-Adoptive Placement
Authority issued by the Department.
(July 30, 2013)

If a married couple decides to adopt a child below (7)

years old, they are entitled to Maternity and Paternity
leave benefits accorded to by law.
Q: What is Flexible Work Schedule according to the

Solo Parents Welfare Act?
Q: What is the purpose of giving Maternity and Paternity

benefits to adopting parents?
A: to provide love, care, understanding and security
towards the full and harmonious development of the
childs personality.
A: "Flexible work schedule" - is the right granted to a solo

parent employee to vary his/her arrival and departure
time without affecting the core work hours as defined by
the employer. (Sec. 3, RA 9872)
Section 6. Flexible Work Schedule. 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.
The parents need time to have an emotional,

psychological bond with the child.
Q: Paternity as previously discussed, the male employee
must be legally married. In the case of Maternity leave,
does the female employee need to married?
Q: Why would they need to vary their arrival and

departure time?
A: No, she does not need to be married.
A: since they are solo parents, it gives them more time for
their children since no other parent can help them.
Q: Next, Under the Solo Parents Welfare Act (RA 9872).

How do you call the leave benefit under this act?
Ex. A solo parent may request the employer if he/she

could come to work at 9am instead of 8 because he needs
to bring his/her child to school.
A: (Jefferson) Parental leave. This leave is different

from Maternity and Paternity leave.
RA 9872
Section 8. Parental Leave. - 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.
For purposes of this act, Children shall be those below 18

years old or 18 years old and above who is incapable of
supporting himself.
Q: What are the requisites for a Solo Parent to avail of
the Parental Leave?
The employee is given (7) days every year with pay for
Parental leave.
Article V, IRR
Section 19. Conditions for Entitlement of Parental Leave A solo
parent shall be entitled to parental leave provided that:
The employee must render at least (1) year of service

unlike Paternity and Maternity leave where even if you
worked for a few days or weeks, you can be entitled to
Paternity and Maternity leave as long as you are married.
a.
b.
Q: What is the purpose of Parental Leave?

A: to enable the parent employee to perform parental
duties and responsibilities where physical presence is
required. (ex. PTA meetings, Graduation, during
Enrolment, etc.)
c.
He/She has rendered at least one (1) year of service

whether continuous or broken at the time of the
affectivity of the Act;
He/She has notified his/her employer of the availment
thereof within a reasonable time period; and
He/She has presented a Solo Parent Identification Card to
his/her employer.
Q: If the Solo Parent subsequently marries, will he still

be entitled to Parental Leave?
A: A change in the status or circumstance of the parent
claiming benefits under this Act, such that he/she is no
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AY 2013-2014
longer left alone with the responsibility of parenthood,
shall terminate his/her eligibility for these benefits.
A: (Mike) the optional retirement age of workers is (60)

and above but not beyond (65) which is the compulsory
retirement age;
Q: Without the Solo Parents Welfare act, would solo

parents still be entitled to any leave benefit under the
Labor Code?
For underground miners, the optional retirement age is

(50) and above but not beyond (60) which is the
compulsory retirement age.
A: Yes, Service Incentive Leave but they must render at

least (1) year of service.
Q: Is there a minimum length of service for an employee

to avail of retirement benefits?
Q: Review: These Paternity and Maternity leave is

equivalent to how many days?
A: For optional retirement of (60 and above), the

minimum length of service required is (5) years;
A: (Rem)
For compulsory retirement of (65), there is NO minimum

length of service required;
Paternity Leave not more than (7) days with pay;

Maternity Leave (under Social Security Act) -
For underground miners in optional retirement of (50)

and above, the minimum length of service is (5) years;
Q: If your wife is going to give birth in December, can

you avail of the Paternity leave in August?
A: No, it must be within a reasonable period of time from
the expected date of delivery.
RA 8187, IRR
Section 4. Application for leave. The married male employees shall
apply for paternity leave with his employer within a reasonable
period of time from the expected date of delivery by the pregnant
spouse, or within such period as may be provided by company rules
and regulations or by collective bargaining agreement, provided that
prior application for leave shall not be required in case of
miscarriage.
For underground miners in compulsory retirement of (60),

there is NO minimum length of service.
Q: Is an employer allowed to hire a person who is 64
years old?
A: Yes it is allowed, there is no law that prohibits a senior
citizen from being hired by an employer.
Q: How much is the retirement pay under the Labor
Code?
Labor Code
Q: Can the married male worker ask for the cash

conversion for the Paternity Leave?
ART. 287. Retirement. Any employee may be retired upon

reaching the retirement age established in the collective
bargaining agreement or other applicable employment
contract.
A: No, the intent of the law is for the male employee to

give full support to his wife who is about to deliver or who
suffers a miscarriage.
XXX at least one-half (1/2) month salary for every year of

service, a fraction of at least six (6) months being considered
as one whole year.
RA 8187, IRR
Unless the parties provide for broader inclusions, the term

one-half (1/2) month salary shall mean fifteen (15) days plus
th
one-twelfth (1/12) of the 13 month pay and the cash
equivalent of not more than five (5) days of service
incentive leaves.
Section 7. Non-commutation of benefits. In the event that paternity

leave benefit is not availed of, said leave shall not be convertible to
cash.
Q: Is the miscarriage stated in RA 8187 cover intentional

abortion?
A: (Rem) No, it only covers unintentional abortion.
Q: So all in all, the month salary is equivalent to how

many days per year of service?
Q: What is the Retirement age of employees?
A: 22.5 days per year of service
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AY 2013-2014
It composes of (15) days plus (5) from the Service
Incentive Leave and plus (2.5) days computed from the
13th month pay = 22.5 days per year of service.
Q: What is an example of a gynecologic disorder?

A: (b) Gynecological disorders refers to disorders that
would require surgical procedures such as, but not limited
to, dilatation and curettage and those involving female
reproductive organs such as the vagina, cervix, uterus,
fallopian tubes, ovaries, breast, adnexa and pelvic floor,
as certified by a competent physician. For purposes of the
Act and the Rules and Regulations of this Act,
gynecological surgeries shall also include hysterectomy,
ovariectomy, and mastectomy.
So if you are receiving the minimum wage, the

computation is 22.5 x 327 x # of years of service
Q: What establishments are exempted from the
Retirement Pay Law (Art 287)?
A: Not applicable to:
1. Retail, service and agricultural establishments or
operations employing not more than (10)
employees or workers.
2. Covered by Civil Service Law
3. Dismissed from work due to just cause.
Q: What is the Expanded Breastfeeding Promotion Act

(10028)? What benefit does it provided to nursing
employees?
Sec. 11. Establishment of Lactation Stations. It is hereby mandated
that all health and non-health facilities, establishments or
institutions shall establish lactation stations.
Q: How about domestic helpers, are they entitled to

retirement pay?
The lactation stations shall be adequately provided with the

necessary equipment and facilities, such as: lavatory for handwashing, unless there is an easily-accessible lavatory nearby;
refrigeration or appropriate cooling facilities for storing expressed
breastmilk; electrical outlets for breast pumps; a small table;
comfortable seats; and other items, the standards of which shall be
defined by the Department of Health. The lactation station shall not
be located in the toilet.
A: Yes, they are not included in the exemptions so

therefore they are included in the retirement pay.
Their latest daily rate must be used to compute for their
retirement pay (follow the computation).
Q: Is there any benefit extended by the Magna Carta of
Women law?
In addition, all health and nonhealth facilities, establishments or

institutions shall take strict measures to prevent any direct or
indirect form of promotion, marketing, and/or sales of infant
formula and/or breastmilk substitutes within the lactation stations,
or in any event or circumstances which may be conducive to the
same.
RA 9710: Magna Carta of Women

Section 18. Special Leave Benefits for Women. A woman employee
having rendered continuous aggregate employment service of at
least six (6) months for the last twelve (12) months shall be entitled
to a special leave benefit of two (2) months with full pay based on
her gross monthly compensation following surgery caused by
gynecological disorders.
Apart from the said minimum requirements, all health and non
health facilities, establishments or institutions may provide other
suitable facilities or services within the lactation station, all of which,
upon due substantiation, shall be considered eligible for purposes of
Section 14 of this Act.
The law extends an additional (2) month leave for female

employees following surgery caused by gynaecological
disorders.
Sec. 12. Lactation Periods. Nursing employees shall granted break

intervals in addition to the regular time-off for meals to breastfeed
or express milk. These intervals, which shall include the time it takes
an employee to get to and from the workplace lactation station,
shall be counted as compensable hours worked. The Department of
Labor and Employment (DOLE) may adjust the same: Provided, That
such intervals shall not be less than a total of forty (40) minutes for
every eight (8)hour working period.
Q: Is there a minimum length of service for a female

employee to be entitled to this Special Leave Benefit?
A: the female employee must have rendered continuous
aggregate employment service of at least six (6) months
for the last twelve (12) months prior to surgery.
Q: Why does this law give this benefit to them?
A: A women who undergoes surgery need time to recover
from her operation.
Q: What is meant by Nursing employees?

A: According to RA 10028 (Expanded Breastfeeding
Promotion Act of 2009)
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AY 2013-2014
milk and/or in appropriate cases, breastfeed their child. In no case,
however, shall the lactation station be located in the toilet.
Sec 3. Definition of Terms
Q: How often does the employer permit the nursing

employee to use the lactation stations?
Nursing employee any female worker, regardless of

employment status, who is breastfeeding her infant
and/or young child.
A: (Glenn) every 3-4 hours, so in an 8 hour shift they

usually breastfeed 2-3 times.
Q: If one is considered a Nursing Employee, what

benefits does the law provide?
A: The law also provides additional break intervals of (40)
minutes every 8 hour shifts in addition to their regular
meal time breaks.
This period for breastfeeding is considered compensable

working hours on top of their 1 hour meal breaks.
Q: Can the establishment apply for exemptions from the
requirement of lactation stations?
These (40) minute breaks are considered compensable

working hours.
Section 8. Exemption A private establishment may apply for an

exemption to establish lactation station at the DOLE Regional Office
having jurisdiction over said establishment. An application for
exemption may be granted by the DOLE Regional Director upon
determination that the establishment of a lactation station is not
feasible or necessary due to the peculiar circumstances of the
workplace taking into account, among others, the number of
women employees, physical size of the establishment and average
number of women who will use the facility. Due substantiation shall
be made by the employer to support the application for exemption.
The exemption granted by DOLE shall be for a renewal period of two
(2) years.
Q: What is meant by an Infant or a Child?

Infant a child within zero (0) to twelve (12) months of
age.
Young child a child from the age of twelve (12) months
and one (1) day up to thirty-six (36) months.
Q: Does the law require the establishments to provide
breastfeeding and lactation stations?
So if you just have a kiosk stand in Ayala so obviously it

would be absurd to place a lactation station there.
A: Yes, the law provides establishments to provide

breastfeeding and lactation stations for nursing women.
Q: If you do not apply for an exemption and you do not

establish a lactation station, is there a penalty?
These stations must not be near toilets because it is

unsanitary if it is near a toilet. There must be a place
devoted by an employer to nursing employees with
appropriate equipment and facilities
Sec. 21. Sanctions. Any private nonhealth facility, establishment

and institution which unjustifiably refuses or fails to comply with
Sections 6 and 7 of this Act shall be imposed a fine of not less than
Fifty thousand pesos (Php50,000.00) but not more than Two
hundred thousand pesos (Php200,000.00) on the first offense.
Q: Does the law describe the lactation station?
On the second offense, a fine of not less than Two hundred

thousand pesos (Php200,000.00) but not more than Five hundred
thousand pesos (Php500,000.00).
Lactation stations private, clean, sanitary, and wellventilated rooms or areas in the workplace or public
places where nursing mothers can wash up, breastfeed or
express their milk comfortably and store this afterward.
Section 10. Minimum Requirements in the Establishment of
Lactation Stations It is hereby mandated that health and non
health facilities, establishments or institutions, including public
places, shall establish lactation stations as appropriate.
Lactation stations shall be accessible to the breastfeeding women. It
shall be adequately provided with the necessary equipment and
facilities and other items, the standards of which shall be defined by
the Department of Health. The lactation station shall be clean, well
ventilated, comfortable and free from contaminants and hazardous
substances, and shall ensure privacy for the women to express their
On the third offense, a fine of not less than Five hundred thousand
pesos (Php500,000.00) but not more than One million pesos
(Php1,000,000.00) and the cancellation or revocation of the business
permits or licenses to operate.
Q: What agency of government ensures compliance of

the standards for breastfeeding and lactation stations?
A: Department of Health (DOH).
So if the DOH finds that an establishment is not complying
with the lactation stations, they can order the appropriate
sanctions.
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AY 2013-2014
c.
The application for exception only covers the providing

for of lactation stations, there is no exception for the
compensable (40) minutes break time interval. Its only
lactation stations where you can apply for exemptions.
d.
e.
TOPIC 12: JURSIDICTION OF THE LABOR ARBITER

Q: What are the requisites before the Regional Director
can assume jurisdiction under Art 129 over 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
house helper 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 house helper does not exceed Five thousand
pesos (P5,000.00).
Requisites:
a. The claimant must be an employee or
househelper;
b. Must arise from an Employee-Employer
relationship;
c. The complaint does not include a claim for
reinstatement;
d. The aggregate money claim of each employee or
househelper does not exceed Php5000.
Q: Does the Labor Arbiter have jurisdiction over money
claims?
f.
Attys Situation:
So if the money claim involves Php8,000 and the
complaint is for underpayment of wages, the jurisdiction
is with the Labor Arbiter. This is regardless of whether
there is a claim for reinstatement or not.
Q: Does the Labor Arbiter have jurisdiction over a
complaint of non-payment of 13th month pay in the sum
of Php4,000 with a claim for reinstatement?
A: Yes, the labor arbiter still has jurisdiction.
Art 217. XXX
c. If accompanied with a claim for reinstatement, those cases that
workers may file involving wages, rates of pay, hours of work and
other terms and conditions of employment; XXX
Q: If the domestic helper has underpaid 13th month pay

and with a simple money claim of Php4,000 without a
claim for reinstatement, who has jurisdiction?
A: The Regional Director has jurisdiction.
A: (Mich) Yes.
Article 217. Jurisdiction of the Labor Arbiters and the Commission.
Except as otherwise provided under this Code, the Labor Arbiters
shall have original and exclusive jurisdiction to hear and decide,
within thirty (30) calendar days after the submission of the case by
the parties for decision without extension, even in the absence of
stenographic notes, the following cases involving all workers,
whether agricultural or non-agricultural:
a.
b.
If accompanied with a claim for reinstatement, those cases

that workers may file involving wages, rates of pay, hours
of work and other terms and conditions of employment
(Labor Standrds);
Claims for actual, moral, exemplary and other forms of
damages arising from the employer-employee relations
(Labor Standards);
Cases arising from any violation of Article 264 of this Code,
including questions involving the legality of strikes and
lockouts(Labor Relations); and
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) regardless of whether accompanied with a
claim for reinstatement. (Labor Standards)
Unfair labor practice cases (Labor Relations);

Termination disputes (Labor Relations);
Page 43
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,
XXX 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 house helper 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 house helper does
not exceed Five thousand pesos (P5,000.00).

AY 2013-2014
Q: Are employees who are paid by job or task based
entitled to 13th month pay?
A: No.
claim for reinstatement, however, the Regional Director

may acquire jurisdiction over money claims exceeding
P5000 if it is pursuant to his visitorial and enforcement
powers under Art 128-b
Q: Are employees paid partly a fixed salary and partly

commission entitled to 13th month pay?
Q: What about Art 128, does it confer jurisdiction to the

Regional Director?
A: Yes.
A: It is the Visitorial & Enforcement power, it is not

adjudicatory. Art 129 is adjudicatory and provides for the
jurisdiction of the Regional Director.
Q: Are employees paid purely on commission entitled to

13th month pay?
A: No.
Q: Whats the difference?
A: (Mitch) when an employee is paid partly fixed salary
and partly commission, the fixed salary should have the
13th month pay; the compensation is not part in the
computation the 13th month pay.
Q: Are employees paid on piece based entitled to 13th
month pay?
A: Yes.
Q: In basic salary, does it include overtime pay or
premium pay?
A: No, only basic pay.
Q: Are allowances part of the basic pay?
A: No.
Q: if the 13th month pay is not paid, does it become a
money claim?
A: Yes.
Q: Under whose jurisdiction?
Q: Is Art 217 adjudicatory over Labor Arbiters?

A: Yes, it confers jurisdiction to Labor Arbiters.
Attys Discussion:
When you say adjudicatory it is quasi-judicial; they
determine the rights and obligations of the parties and
decide over the case.
Q: Art 217 (f) mentions ..EXCEPT claims for Employees
Compensation, Social Security, Medicare and maternity
benefits.. Who has jurisdiction over these claims?
A: Attys Discussion:
Claims under Employees compensation is under the
Employees Compensation or ECC Law.
ECC law is for work-related injury or sickness, so if you are
working on a factory and a hollow block falls on your head
then it is a work related injury, so that is compensable
under the ECC law.
So for the injury that you sustained you can claim for
damages but the claim is filed with the Labor Arbiter but
with the Employees Compensation Commission who
has jurisdiction.
A: it depends:
Medicare has been changed to Phil Health under the

Philippine Life Insurance Act.
For Labor Arbiters, they covers money claims

accompanied with claims of reinstatement or money
claims exceeding P5000 regardless of whether there is a
claim for reinstatement or not.
Maternity Benefits is under the Social Security Law and

jurisdiction over claims of damages is with the Social
Security Commission or SSC
For the Regional Director, he covers money claims not

exceeding P5000 but such complaint must not include a
Those who are members of SSS are entitled to benefits

like sickness benefits, disability benefits, funeral benefits
and other similar benefits.
Page 44

AY 2013-2014
If these benefits are denied of you, then you can file a
claim with the SSC.
Q: Can field personnel be entitled to Holiday pay?

A: No, the coverage under Art 82 applies also to Holiday
Pay,
Q: If the money claim involves unpaid overtime pay of

P1000 pesos by a worker who is still employed?
A: (Russel) The jurisdiction is still with the Regional
Director because since the claim does not exceed P5000
and the employee is not seeking a claim for reinstatement
since he is still employed.
Q: Follow-up question: But isnt it that under Art 129 the
employee is no longer employed?
A: (Russel) an employee who is claiming for reinstatement
may no longer employed, however employees who are
still employed can apply for under this article since they
are not claiming reinstatement.
Q: So if it is with reinstatement?
Q: In August 6 it is a Special holiday and in August 9 it is

a Regular Holiday.
What is the difference between a Special Holiday and a
Regular Holiday?
A: In terms of the benefits received:
In a Special holiday, if the employee works he is entitled
to his regular daily rate plus an additional 30% for the first
8 hours; this is called Premium Pay
If he does not work then he is not entitled to
compensation.
In a Regular Holiday, if the employee works on that day,
he is entitled to his daily rate (100%) plus holiday pay
(100%), equal to 200%.
A: Then the jurisdiction is with the Labor Arbiter.

Q: If the amount is more than P5000, would the claim for
reinstatement be important?
A: No, regardless whether he has a claim or not, the
jurisdiction is with the Labor Arbiter.
If he does not work on a Regular Holiday, he is still

entitled to (100%) of his daily rate, this is called Holiday
Pay.
Q: What if the Regular Holiday falls on the employees
scheduled Rest Day and he works on that day?
Q: If the Labor Arbiter renders a decision, who has

jurisdiction over an appeal?
A: he is entitled to his daily rate (100%) plus an additional

for (100%) holiday pay. Then plus an additional (30%) of
the total (200%) for working on his rest day, equivalent to
260%.
A: NLRC
REVIEW QUESTIONS
Computation: 30% of 200 = 60, so 200%+60% =260%
Q: Are field personnel entitled to Overtime Pay?
Q: If he does not work on that day?
A: No, they are expressly prohibited under Art 82.
A: he only receives (100%) Holiday pay.
Article 82. Coverage. The provisions 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 in appropriate regulations.
Q: What if the employee is a member of the managerial

staff, will he be entitled to Holiday pay?
A: No, Holiday pay covers only rank and file employees;
however the employer may choose to provide Holiday pay
to the managerial staff if he so wishes.
Field personnel are not entitled to overtime pay since

their hours of work are not standard and they can choose
to work at their own time.
Page 45

AY 2013-2014
Q: If employees are required to attend Lectures and
Seminars, is it considered compensable hours of work
even if outside their regular hours of work?
NOTE: Please supplement your studies with the cases

assigned by Atty. Marquez. Do not limit your studies with
only one source.
A: Yes, it is still compensable since they are required to

attend.
GOOD LUCK AND GOD BLESS TO ALL!!
If it purely voluntary then it is not compensable

Q: When are Seminar, Meetings and lectures not
considered compensable hours of work?
IRR, Book III, Rule I
Section 6. Lectures, meetings, training programs. Attendance at
lectures, meetings, training programs, and other similar activities
shall not be counted as working time if ALL of the following
conditions are met:
a)
b)
c)
Attendance is outside of the employee's regular working

hours;
Attendance is in fact voluntary; and
The employee does not perform any productive work
during such attendance.
If one condition is absent, then the Seminar, Meeting or

training is considered compensable working hours.
Q: What is the principle of Non-Diminution of benefits?
A: it essentially means that benefits being given to
employees cannot be taken back or reduced unilaterally
by the employer because the benefit has become part of
the employment contract, written or unwritten.
This principle involves supplements and other
employment benefits.
Q: What is meant by Supplements?
A: Constitute extra remuneration or privileges or benefits
given to or received by the laborers over and above their
ordinary earnings wages.
Ex. if the employer gives free meals to the employee
-END-
Page 46

Labor Standards - Midterm Transcript 2013

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Labor Standards Midterm Transcript

Q: Does Labor and Capital stand on equal footing?

NOTE: Answers presented in the transcript are the direct answers to

A (Ivar): They stand on equal footing in Communism, but

June 18, 2013

TOPIC 1: THE APPLICABLE LAWS

Atty: Do you think it would be possible for the

Q: When is Labor Day?

A (Ivar): May 1 (Every Year)

Atty: If we put L&C on equal footing then we dont need

Q: When did PD 442 take effect?

We study Labor Standards to identify existing laws that

A: (1) Social Justice Giving a person his due in the

May also refer to the working class in society;

The law is geared towards the concern of labor because

Compiled by MFLH Exclusive for EH405