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Labor legislation statues, regulations & jurisprudence governing relations
bet capital & labor, by providing for certain standards of terms & conditions
of EENT or providing a legal framework w/ikululiu;n w/c these terms &
conditions & the EENT relationship may be negotiated, adjusted &
admcjjmmfinistered.
2 Divisions of Labor Legislation
1. Labor Standards sets out thet minimum terms, conditions & benefits of
EENT that EERS must provide or comply w/ & to w/c EES are entitled as a
matter of legal right.
- minimum requirements prescribed by existing laws, rules & regulations
relating to wages, hrs of work, cost-of-living allowance and other monetary &
welfare benefits, including occupational safety & health standards.
- material or substance to be processed
2. Labor Relations defines the status, rights & duties and the institutional
mechanisms, that govern the indiv & collective interactions of EERS, EES, or
their representatives.
- mechanism that processes the substance
Labor physical toil although it does not necessarily exclude the application
of skill (thus skilled & unskilled labor)
Skill the familiar knowledge of any art/science, united w/ readiness &
dexterity in execution/performance or in the application of the art/science to
practical purposes.
Work (broader than labor) covers all forms of physical/mental exertion, or
both combined, for the attainment of some obj other than
recreation/amusement per se.
Worker (broader than EE) may refer to self-employed people & those
working in the service & under the control of another, regardless of rank,
title, or nature of work.
- any member of the labor force whether employed/unemployed
Employee a salaried person working for another who controls or supervises
the means, manner or method of doing the work.
Labor Law & Social Legislation
Social legislation includes laws that provide particular kinds of
protection/benefits to society in furtherance of social justice.
Labor laws are necessarily social legislation
Social Justice as the Aim

Social justice humanization of laws & the equalization of social & economic
forces by the State so that social justice in its rational & objectively secular
conception may at leas be approximated
- promotion of the welfare of the ppl, the adoption by the Govt of measures
calculated to insure economic stability of all the component elements of
society through the maintenance of proper economic & social equilibrium in
the interrelations of the members of the community, constitutionally, through
the adoption of measures legally justifiable, or extra-constitutionally, through
the exercise of powers underlying the existence of all govts.
1987 Consti: protects the rights of workers & promote their welfare
Basic rights of workers guaranteed by the Constitution
1. to organize themselves
2. to conduct collective bargaining/negotiation w/ mgt;
3. to engage in peaceful concerted activities, including to strike in
accordance w/ law; and
4. to participate in policy & decision-making processes affecting rights &
benefits
Other Consti provisions that protect the Rs/promote the welfare of workers
R to form unions, assocs or societies for purposes not contrary to law
R of self-org even for govt EES.. No officer/Ee of the Civil Service shall be
removed/suspended for cause. Temporary EES of the Govt shall be given
such protection as may be provided by law
Regular farmworkers shall have the R to own directly/collectively the lands
they till. Landless farmworkers may be resettled by the govt in its own agri
estates.
Continuing program of urban land reform & housing
Protection for working women taking into acct their maternal functions,
etc
Labor sector is entitled to seats to party list
Goal: more equitable distribution of opportunities, income & wealth.
Agency to promote the viability & growth of cooperatives as instruments
for social justice & economic devt
Govt shall increase the salary scales of the other officials & EES
Career civil service EES shall be entitled to separation pay & retirement
benefits, OR may be considered for reemployment in the govt
Consti prol-labor, but recognizes the indispensable role of the private
sector, encourages private enterprise and provides incentives to needed
investments
Police Power as the Basis
- the power of the govt to enact laws, w/in Constitutional limits to promote
the order, safety, health, morals & general welfare of society

- power inherent in govt to protect itself & all its constituents, & for this
purpose to hold the govt immune so far as necessary, from any limitatins
imposed in the past.
- An imposition of restraint upon liberty or property in order to foster the
common good.
Birth of the LC
Blas Ople - father of the LC
LC designed to be a dynamic & growing body of laws w/c will reflect
continually the lessons of practical application & experience
7 Principles Underlying the code
1. Labor relations must be made both responsive & responsible to national
devt
2. Labor laws/labor relations during a period of national emergency must
substitute rationality for confrontation; strikes or lockouts give way to a
rational process w/c is arbitration
3. Laggard justice in the labor field is injurious to the workers, the EERS & the
public; labor justice can be made expeditious w/o sacrificing due process.
4. Manpower devt & EENT must be regarded as a major dimension of labor
policy, for there can be no real equality of bargaining power under conditions
of severe mass unemployment.
5. There is a global labor market available to qualified Filipinos, esp those
who are unemployed or whose EENT is tantamount to unemployment bcoz of
their very little earnings.
6. Labor laws must command adequate resources & acquire a capable
machinery for effective & sustained implementation; when labor laws cannot
be enforced, both EERS & the workers are penalized, & only a corrupt few
(those who are in charge of implementation) may get the reward they dont
deserve.
7. There shld be popular participation in national policy-making through what
is now called tripartism.
Some Labor Laws before the Passage of the Code
Act #1874: EERS Liability Act,
Act #2549: prohibited payment of wages in non-cash form
Act #2071: prohibiting slavery/involuntary servitude
R #1054: requiring emergency medical treatmt for EES
CA # 444: 8-hr labor law
CA #103 created the Court of Industrial Relations (CIR)
Pd #21 created the NLRC ( to investigate, decide & settle all disputes bet
EERS & EES
RA # 875: The Industrial Peace Act (the Magna Carta of Labor)

 RA #946: Blue Sunday Law forbids commercial, industrial or agri

enterprises to open on any Sunday, Xmas Day, New Years Day, Holy Thurs &
Good Friday.
RA #1787: The Termination Pay Law enumerated the just causes for
terminating an EENT w/o a definite period and allowed EERS to separate an
EE by serving a 15-day notice per yr of service or, by paying an equivalent
separation pay.
Significance of Other Laws
1. Foreign Decisions numerous LC provisions are substantially similar to the
Industrial Peace Act
2. The Civil Code describes the nature of labor mgt relations:
The relations bet capital & labor are not merely contractual. They are so
impressed w/ public interest that labor contracts must yield to the common
good. such contracts are subj. to the special laws on labor unions,
collective bargaining, strikes & lockouts, closed shop, wages, working
conditions, hrs of labor & similar subjs. Art 1700
Neither capital nor labor shall act oppressively against the other, or impair
the interest or convenience of the public Art 1701.
3. RPC punishes the use of violence or threats by either EER or EE.
4. Special Laws (SSS law, GSIS law, Agrarian Reform law, the 13th-month
pay law, the Magna Carta for Public Health Workers)
Art 3. [Declaration of Basic Polici] The State shall afford protection to labor,
promote full EENT, ensure equal work opportunities regardless of sex, race or
creed, and regulate the relations bet workers & EERS. The State shall assure
the rights of workers to self-org, collective bargaining, security of tenure, and
just & humane conditions of work.
Balanced Approach shared responsibility. Worker & EER sectors are
interdependent.
Art4. [Construction in Favor of Labor] All doubts in the implementation &
interpretation of the provisions of this Code, including its IRRs, shall be
resolved in favor of labor.
Interpretation & Construction policy is to extend the decrees applicability
to a greater number of EES to enable them to avail of the benefits under the
law (Liberal approach is adopted)
Concern for the Lowly Worker SC reaffirms its concern for the lowly worker
who, often at his EERs mercy, must look up to the law for his protection.
(Reason: the EER stands on higher footing than the EE: (1,) There is greater

supply than demand for labor; (2) the need for EENT by labor comes from
vital & even desperate necessity.)
Mgt Rights entitled to respect & enforcement in the interest of simple fair
play.
1. R to manage, control, and use his property & conduct business in a
manner satisfactory to himself (just discrimination in the rate of wages paid
to the skillful & to the unskillful, to the efficient & inefficient.)
2. R to prescribe rules (they become part of the contract of EENT)
3. R to select EES & to decide when to engage them, except as restricted by
statute or valid contract, at a wage & under conditions agreeable to them.
4. R to transfer & discharge EES in order to minimize expenses & to insure
stability of the business & even to close the business, provided it is done in
good faith & due to causes beyond control.
Art 5. [Rules & Regulations] the DOLE & other govt agencies charged w/ the
administration & enforcement of this Code or any of its parts shall
promulgate the necessary IRRs. Such RRs shall become effective 15 days
after announcement of their adoption in the newspapers of gen. circulation.
Art 6. [Applicability] All Rs & benefits granted to workers under this Code
shall, except as may otherwise be provided herein, apply alike to all workers,
whether agricultural or non-agricultural.
- also applies to a govt corp incorporated under the Corporation Code.
- Test WON a govt-owned/-controlled corp is subj to CS Law is the manner of
its creation. Govt corps created by special charter are subj to its provisions,
while those incorporated under the gen Corp Law are not w/in the coverage
of the CS law.
PNOC-EDC incorp under the Corp Law subj to LC
NHA incorp under Act 1459, the former corp law LC
Govt agencies Ees covered by CS Law
CH. 2: EMANCIPATION OF TENANTS
Art 7 [Statement of Objectives] it has become imperative to start
reformation w/ the emancipation of the tiller of the soil from his bondage.
Art 8: [Transfer of Lands to Tenant-workers] tenant-farmers on private agri
lands primarily devoted to rice & corn under a sys of share crop or lease
tenancy whether classified as landed estate or not shall be deemed owner of
apportion constituting a family-size farm of 5 hectares if not irrigated & 3
hectares if irrigated..
In all cases, the landowners may retain an area of not more than 7 hectares
if such landowner is cultivating such area or will now cultivate it.

Art 9. [Determination of Land Value] For the purpose of determining the cost
of the land to be transferred to the tentant-farmer, the value of the land shall
be equivalent to 2 & times the average harvest of 3 normal crop yrs
immediately preceding the promulgation of PD 27 (OCT 21, 1972).
The total cost of the land, including interest at the rate of 6% per annum,
shall be pd by the tenant in 15 yrs of 15 equal annual amortizations.
In case of default, the amortizations due shall be pd by the farmers
cooperative in w/c the defaulting tenant-farmer is a member, w/ the coop
having a right of recourse against him.
The govt shall guarantee such amortizations w/ shares of stock in govtowned & -controlled corps.
Art 10. [Conditions of Ownership] No title to the land acquired by the tenantfarmer under PD 27 shall be actually issued to him unless & until he has
become a full-fledged member of a duly recognized farmers coop.
Title to the land acquired pursuant to PD 27 or the Land Reform Program of
the Govt shall not be transferable except by hereditary succession or to the
Govt in accdance w/ the provisions of PD 27, the Code of Agrarian Reforms &
other existing laws & regulations.
Art 11. [Implementing Agency] The Dept of Agrarian Reform shall promulgate
the necessary rules & regulations to implement the provisions of this
Chapter.
*Land for the landless battlecry dramatizing the increasingly urgent
demand of the dispossessed for a plot of earth as their place under the sun.
*CARP Law signed by Cory, declaring full land ownership in favor of the
beneficiaries of the PD 27.
Share tenancy abolished, put the agricultural leasehold sys in its stead,
geared towards eventual ownership of land by its tillers
Consti - State shall undertake an Agrarian Reform Program, and encourage &
undertake the just distribution of all agri lands, subj to such priorities &
reasonable retention limits as the Congress may prescribe,
Compensation scheme: Sec 18 of CARP: Title to all expropriated properties
shall be transferred to the State only upon full payment of compensation of
their respective owners.
Retention Limits provided for by RA 6657 : as otherwise provided.. no
person may own/retain directly/indirectly, any public/private agri land, the
size of w/c shall vary accdg to factors governing a viable family-sized farm,
such as commodity produced, terrain, infrastructure, & soil fertility as
determined by the Presidential Agrarian Reform Council (PARC).
3 hectares may be awarded to each child of the landowner, subj to the ff
qualifications: (1.) he is at least 15 y/o, and (2) he is actually tilling the land
or directly managing the farm; Provided, that landowners whose lands have

been covered b PD 27 shall be allowed to keep the area originally retained by

them thereunder; Provided further, that orig homestead grantees or direct
compulsory heirs who still own the org homestead at the time of the
approval of this Act shall retain the same areas as long as the continue to
cultivate said homestead.
Lands not covered
1. Lands obtained through homestead patent:
Homestead Act gives a needy citizen a piece of land where he may build a
modest house for himself & family & plant what is necessary for subsistence
& for the satisfaction of lifes other needs.
- superior over the rights of tenants
2. Residential Subdivisions not considered agricultural. An agricultural
leasehold cannot be established on land w/c has ceased to be devoted to
cultivation or farming bcoz of its conversion into a residential subd.
3. Livestock, poultry & Swine raising lands: Sec 2 of RA 6657 w/c includes
private agri lands devoted to commercial livestock, poultry & swine
raising in the definition of commercial farms is invalid. They are covered
by the agrarian reform prog of the State.
The Greatest BlessingThe Worst Crime Frederick Taylor
- an increased output invariably gives more work to more men, & never in
the history of the world has it more than temporarily, and then for only a
very short time, diminished by the number of men at work in any trade
The Greatest Exploiter Blas Ople
- unemployment is the greatest exploiter of labor. Mass unemployment tends
to leave the EER all-powerful and the worker defenseless
More Capital Means More Jobs Adam Smith
- 2 kinds of funds: (1) the Revenue w/c is over & above what is necessary
for the maintenance; and (2) the Stock w/c is over & above shat is
necessary for the EENT of their masters.
- The demand for those who live by wages necessarily increases w/ the
increase of the revenue & stock of every country and cannot increase w/o it.
The increase of revenue & stock is the increase of national wealth.
An Exploited Class J. Reynato Puno
- Overseas workers constitute an exploited class. Their unfortunate
circumstance makes them easy prey to avaricious EERs. They will work
under subhuman conditions & accept salaries below the minimum.

9% of Filipinos are Based OverseasPh Star

RA 6657 Comprehensive Agrarian Reform Program
Aim: A more equitable distribution & ownership of land, w/ due regard to the
rights of landowners to just compensation & to the ecological needs of the
nation
Basis: the R of farmers & regular farm workers, who are landless, to own
directly or collectively the lands they till or, in the case of other farm
workers, to receive a share of the fruits thereof
The State:
- shall respect the R of small landowners & shall provide incentives for
voluntary land-sharing
- shall recognize the R of farmers, farm workers & landowners, as well as
cooperatives & other independent farmers org, to participate in the planning,
org, & mgt of the program & shall provide support to agriculture though tech
& research & financial, production, marketing & other support services
- may resettle landless farmers & farm workers in its own agricultural estates
- shall encourage the formation & maintenance of economic-sized family
farms to be constituted by indiv beneficiaries & small landowners
- shall protect the Rs of subsistence fishermen to the preferential use of
communal marine & fishing resources both inland & offshore
- shall provide support to such fishermen thru appropriate tech & research,
adequate financial, production & marketing assistance
- shall protect offshore fishing grounds of subsistence fishermen against
foreign intrusion. Fisherworkers shall redeive a just share from their labor in
the utilization of marine & fishing resources
- owners of agri land have the oblig to cultivate directly or thru labor admin
the lands they own & thereby make the land productive.
- Shall provide incentives to landowners to invest the proceeds of the
agrarian reform prog to promote industrialization, EENT & privatization of
pub sector enterprises
- May lease undeveloped lands of pub domain to qualified entities for the
devt of capital-intensive farms, traditional & pioneering crops esp those for
export (subj. to Rs of beneficiaries)
Definitions
1. Agrarian Reform the redistribution of lands, regardless of crops/fruits
produced, to farmers & regular farm workers who are landless, irrespective of
tenurial arrangemt, to include the totality of factors & support services
designed to lift the economic status of the beneficiaries and all other
arrangemts alternative to the physical redistribution of lands (production or
profit-sharing, labor admin, distribution of shares of stock)

2. Agriculture, Agricultural Enterprise or Agricultural Activity the cultivation

of the soil, planting of crops, growing of fruit trees, incl. the harvesting of
such farm products, & other farm activities
3. Agricultural land land devoted to agricultural activity, and NOT classified
as mineral, forest, residential, commercial or industrial land
4. Agrarian Dispute any controversy relating to tenurial arrangements,
whether leasehold, tenancy, stewardship or otherwise, over lands devoted to
agri
- including disputes concerning farm workers assocs, or representation of
persons in negotiating, fixing, maintaining, changing or seeking to arrange
terms of conditions of such tenurial arrangements
- including controversy relating to compensation of lands acquired under this
Act & other terms & conditions of transfer of ownership from landowners to
farm workers, tenants & other agrarian reform beneficiaries
5. Idle / Abandoned Land any agricultural land not cultivated, tilled or
developed to produce any crop nor devoted to any specific economic
purpose continuously for a period of 3 yrs immediately prior to the receipt of
notice of acquisition by the govt
- but does NOT include land that has become permanently or regularly
devoted to non-agricultural purposes
- does NOT include land w/c has become unproductive by reason of force
majeure or F event
6. Farmer a natural person whose primary livelihood is cultivation of land or
the production of agri crops either by himself, or primarily w/ the assistance
of his immediate farm household, whether the land is owned by him, or by
another person under a leasehold or tenancy agreement
7. Farmworker a netural person who renders service for value as an EE or
laborer in an agricultural enterprise or farm
8. Regular Farmworker a natural person who is employed on a permanent
basis by an agricultural enterprise or farm
9. Season Farmworker a natural person who is employed on a recurrent,
periodic or intermittent basis by an agricultural enterprise or farm
h. Cooperatives orgs composed primarily of small agri producers, farmers,
farmworkers or other agrarian reform beneficiaries who voluntarily organize
themselves for the purpose of pooling land, human, technological, financial
or other economic resources & operated on the principle of one member, one
vote. ( a juridical person may be a member of a coop, w/ the same Rs &
duties as a natural person.
Scope: all public & private agricultural lands, incl. other lands of the pub
domain suitable for agriculture

1. All alienable & disposable lands of the pub domain devoted to or suitable
for agriculture
2. All lands of the pub domain in excess to the specific limits as determined
by Congress
3. All other lands owned by the Govt devoted to or suitable for agri
4. All private lands devoted to or suitable for agri regardless of the agri
products raised/can be raised thereon
Schedule of Implementation: w/in 10 yrs from effectivity
Retention Limits: no person may own or retain, directly, any pub or private
agricultural land, the size of w/c shall vary accdg to factors governing a
viable family-sized farm
- landowner may retain only 5 hectares.
- 3 hectares: each child of landowner, that is 15y/o, and is actually tilling the
land or directly managing the farm
- landowners whose lands have been covered by PD 27 shall be allowed to
keep the area originally retained by them thereunder
- the original homestead grantees or direct compulsory heirs who still own
the orig homestead shall retain the same areas as long as they continue to
cultivate said homestead
- the R to choose the area to be retained belongs to the landowner.
However: (a) in case the area selected by landowner is tenanted, the tenant
shall have the option whether to remain therein, be a beneficiary of the
same, or another agri land w/ similar/comparable features; (b) in case the
tenant chooses to remain in the retained ares, he shall be considered a
leaseholder & shall lose his R as a leaseholder to the land retained by the
landowner. The tenant must exercise this option w/in 1 yr fr the time the
landowner manifests his choice of the area for retention.
- Upon Acts effectivity, any sale, disposition, lease, mgt contract or transfer
of position of private lands executed by the orig landowner in violation of this
Act shall be null & void. Provided, that those executed prior to this Act shall
be valid only when registered w the Reg of Deeds w/in 3 months after
effectivity.
Presidental Agrarian Reform Council (PARC) shall provide the implementing
rules
- upon recommendation by the Provincial Agrarian Reform coordinating
Committee, may declare certain provinces/regions as priority land reform
areas

Multinational Corps all lands of the pub domain leased, held, or possessed
by multi corps or assocs, and other lands owned by the govt, or govt-owned/controlled corps, assocs, institutions or entities, devoted to existing &
operational agribusiness or agro-industrial enterprises, operated by
multicorps shall be programmed for acquisition & distribution immediately
upon effictivity
Ancestral Lands shall include, but not limited to, lands in the actual,
continuous & open possession & occupation of the community and its
members, provided that the Torrens System shall be respected
- shall be protected to ensure their economic, social & cultural well-being
- in the autonomous regions, the respective legislature may enact their own
laws on ancestral domain subj to the provisions of the Consti, this Act and
other national laws.
Exemptions & Exclusions
1. Lands actually, directly & exclusively used for parks, wildlife, forest
reserves, reforestation, fish sanctuaries and breeding grounds, watersheds
and mangroves
2. Private lands actually, directly & exclusively used for prawn farms &
fishponds (provided that said prawn farms & fishponds have not been
distributed and Cert of Land Ownership Award issued to ARP.
3. Lands actually, directly & exclusively used & found to be necessary for
national defense, school sites & campuses, incl experimental farm stations
operated by pub/private schools for educational purposes, seeds and
seedlings research and pilot production center, church sites & convents
apputenat therety, mosque sites & Islamic centers appurtenant thereto,
communal burial grounds & cemeteries, penal colonies & penal farms
actually worked by inmates, got & private research & quarantine centers and
all lands w/ 18% slope and over, except those already developed
Procedure for Acquisition of Private Lands
1. After having identified the land, the landowners & beneficiaries, DAR shall
send its notice to acquire the land to the owners;
2. w/in 30 days from date of receipt, landowners shall inform the DAR of his
acceptance/rejection of the offer;
a. if landowner accepts the offer, the LBP shall pay the landowner of the
purchase price of the land w/in 30 days after he executes & delivers a deed
of transfer in favor of the Govt and surrenders the Cert of Title
b. in case of rejection or failure to reply, DAR shall conduct summary admin
proceedings to determine compensation of the land

3. upon receipt of the landowner of the payment, or in case of rejection or no

response fr the landowner, upon the deposit w/ an accessible bank or
the compensation, the DAR shall take immediate possession of the land &
shall request the Register of Deeds to issue a TCT in the name of the RP.
4. Any party who disagrees w/ the decision may bring the matter to the court
Determination of Just Compensation
- cost of acquisition of the land
- current value of like properties,
- its nature, actual used and income
- the sworn valuation by the owner,
- tax declarations
- assessment made by the govt assessors
Incentives for voluntary offers of sale addtl 5% cash
Priority of Qualified Beneficiaries
1. Agricultural lessees & share tenants
2. Regular farmworkers
3. Seasonal farmworkers
4. Other farm workers
5. Actual tillers/occupants of public lands
6. Collective or cooperatives of the above beneficiaries
7. Others directly working on the land
*Provided: children of landowners who are qualified shall be given preference
in the distribution of the land of their parents
*Provided further: actual tenant-tillers in the landholding shall not be
ejected/removed therefrom.
Transferability of Acquired lands by beneficiaries may not be sold,
transferred or conveyed except thru hereditary succession, or to the govt,
or to the LBP, or to other qualified beneficiaries for 10 yrs
*Provided, that the children/spouse of the transferor shall have a R to
repurchase the land fr the govt/LBP w/in 2 yrs
Standing crops at the time of acquisition shall be retained by the
landowner, Dar shall give a reasonable time to harvest the same
Corporate Farms
- in case land cannot be divided directly, shall be owned collectively by the
worker-beneficiaries who shall form a workers cooperative or assoc w/c will
deal w/ the corp
- indiv members of the coop shall be provided w/ homelots or small farmlots
for their family use taken fr the land owned by the coop

Production-sharing - pending final land transfer

Support Services
1. irrigation facilities
2. infrastructure devt & pub works projects
3. govt subsidies for the use of irrig facilities
RA 9700 Act Strengthening the CARP, extending the acquisition &
distribution of all agricultural lands, instituting necessary reforms, amending
for the purpose certain provisions of RA 6657
- State shall protect Filipino enterprises against unfair foreign competition &
trade practices
- State recognizes that there is not enough agricultural land to be divided &
distributed to each farmer & regular farmworker so that each one can own
his economic-size family farm.
- Answer: simultaneous industrialization aimed at developing a self-reliant &
independent national economy effectively controlled by Filipinos
- State may, in the interest of national welfare or defense, establish &
operate vital industries
- Implementation of the prog shall be community-based
- State shall recognize & enforce the Rs of rural women to own & control land
- State shall provide incentives to landowners to invest the proceeds of the
agrarian reform prog to promote industrialization, EENT & privatization of the
pub sector enterprises
Added Definition
1. Rural women women who are engaged directly/indirectly in farming
and/or fishing as their source of livelihood, whether paid or unpaid, regular or
seasonal, or in food preparation, managing the household, caring for the
children, & other similar activities
2. Landless beneficiary one who owns less than 3 hectares of agri land
Added Exception to Retention Limits
- Provincial, city & mun govt units acquiring private agri lands by
expropriation to be used for actual, direct & exclusive pub purposes, such as
roads & bridges, pub markets, school sites, resettlement sites, local govt
facilities, pub parks & brgy plazas or squares consistent shall not be subj to
the 5-hectare retention limit
Order of Priority
- 3 hectares each to the 1st 2 beneficiaries

- only when these beneficiaries have rcvd 3 hectares each, shall the
remaining portion of the landholding, if any, be distributed to other
beneficiaries
Payment by Beneficiaries payable to LBP in 30 annual amortizations at 6%
interest per annum
Support shall be extended equally to women & men beneficiaries
Landicho v Sia
Facts:
3 parcels of land were originally owned by the Aragons, tenanted by the
late Arcadio Landicho from 1949 until his death in 1972, afterwhich, his
tenancy rights were succeded by his son, petitioner Francisco Landicho (the
other petitioners were Buenaventura (Franciscos son), and Federico
(Franciscos brother), helped him cultivate the land
in 1976, Francisco voluntarily surrendered his tenancy Rs over the land to
the Aragons through a notarized kasulatan for a consideration of P1,000,
but petitioners continued cultivating the land until 1987 when Francisco
executed another notarized kasulatan thru w/c he surrendered his
tenancy rights for a consideration of P3,000.
On the same day as the execution of the 1987 kasulatan, the lands were
sold by the Aragons for P50,000 to respondent Felix Sia, who in turn
converted the same to a residential subd w/o a DAR clearance and ejected
the petitioners therefrom.
Peitioners filed a protest before the DAR alleging that they are the tenants
of the lands and claimed that they are entitled to a disturbance
compensation. They alleged that they were fooled into signing over their
tenancy rights thru the machinations of the Aragons.
The respondents in their answer, denied such allegation and added that
the petitioners are barred by estoppel, laches and prescription
Issue 1: WON petitioners are tenants of the land
Held: A tenant is defined as a person who, himself and w/ the aid available
from w/in his immediate farm household, cultivates the land belonging to, or
possessed by another, w/ the latters consent for purposes of production,
sharing the produce w/ the landholder under the share tenancy system, or
paying to the landholder a price certain or ascertainable in produce or in
money or both, under the leasehold tenancy system
For a tenancy relationship to exist, all of the ff essential requisites must be
present:
1) the parties are the landowner & the tenant

2)
3)
4)
5)
6)

the subj matter is agricultural land

there is consent bet the parties
the purpose is agricultural production
there is personal cultivation by the tenant
there is sharing of the harvests bet the parties

Under the definition, only Francisco possesses the requisites of a tenant.

Petitioners Federico and Buenaventura are not tenants because consent (#3)
by the landowners is lacking. They are merely farm helpers of Francisco as
part of his immediate farm household. There was also no evidence to show
that they gave a share of their harvest to the Aragons (#6).
Issue 2: WON the respondents took advantage of Franciscos old age &
illiteracy and employed fraudulent schemes in order to deceive him into
signing the Kasulatans
Held: As the legal tenant of the lands, Francisco had voluntarily surrendered
his tenancy rights when he knowingly & freely executed the 1987 Kasulatan.
There was no showing of foul play, because the Kasulatan was in Filipino, a
language spoken & understood by Francisco and was couched in plain and
clear terms. Such kasulatan was also duly notarized and are considered as
public documents executed w/ all the legal formalities which afford it the
legal presumption of regularity and legality abent full, clear and convincing
evidence to the contrary.
Final ruling: Petitioners have no cause of action and the same has prescribed.
Portuguez v GSIS Family Bank and CA
Facts:
Petitioner was employed by the respondent bank as utility clerk in 1971.
Since then, he had been promoted repeatedly up to 1998 when he was
temporarily assigned as caretaker of the bank and designated as Acting Asst.
VP and OIC in June of 1998.
Respondent bank is a banking institution originally known as Royal
Savings Bank. In 1983-84, it underwent serious liquidity problems and was
placed under receivership by the Central Bank, which ordered its closure in
July of 1984. After 2 months, the respondent bank was reopened under the
control & mgt of Comsavings Bank.
In 1987, the GSIS acquired the interest of the respondent bank and took
over the control & mgt of the bank and renamed it as GSIS Family Savings
Bank.
The designation of the petitioner as OIC & caretaker was recalled,
however his appointment as Acting Asst VP was retained.

 In line w/ its policy to attain financial stability, the respondent bank

adopted measures, one of w/c is an early retirement program.
In april of 2001, petitioner opted to avail himself of this retirement
package, (supposedly under protest) & received the amt of P1,342M as
retirement pay.
In july 2002, petitioner filed a complaint against resp bank for constructive
dismissal & underpayment of wages, 13th month pay & retirement benefits
before the Labor Arbiter. He alleged discrimination & unfair treatment, and
intense pressure on the part of the resp bank forced him to retire at the
prime of his life.
Issue 1: WON there was constructive dismissal
Held: No.
Constructive dismissal quitting because continued EENT is rendered
impossible, unreasonable or unlikely, as an offer involving a demotion in rank
& a dimunition in pay. May also mean an act of clear discrimination,
insensibility or disdain by an EER may become so unbearable on the part of
the EE so as to foreclose any choice on his part except to resign
Petitioner claims he was discriminated against as new hires were given
higher salaries than he was receiving.
Discrimination failure to treat all persons equally when no reasonable
distinction can be found bet those favored & those not favored. It must be
clearly established that (1) there is no reasonable distinction for classification
that can be obtained bet persons belonging to the same class, and (2)
persons belonging to the same class have not been treated alike
Petitioner failed to established that he possessed the same skills,
competencies & expertise as those newly hired to eliminate the possibility of
substantial distinction that may warrant unequal treatment bet them.
Petitioner contends that in cases of constructive dismissal, the burden of
proof rests on the EER to show that the EE was dismissed on a valid & just
cause. But this legal principle presupposes that there is indeed an
involuntary separation from EENT & the facts attendant to such forced
separation was clearly established, w/c the petitioner failed to do. It was him
who availed of the voluntary retirement program. And absent the showing of
duress, the presumption is that it was done by him voluntarily.
While the state promotes the utmost protection of labor against capital, it
does not mean that the working class is upheld in all labor dispute. The law
also recognizes the rights of management.
PRE-EMPLOYMENT
Art 12. It is the policy of the State:
1. to promote and maintain a state of full employment through improved
manpower training, allocation and utilization;

2. to protect every citizen desiring to work locally/overseas by securing for

him the best possible terms and condition of employment;
3. to facilitate a free choice of available employment by persons seeking
work in conformity with the national interest;
4. to facilitate & regulate the movement of workers in conformity w/ the
national interest;
5. to regulate the employment of aliens, including the establishment of a
registration and/or work permit system;
6. to strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of
workers, locally and overseas, to serve national development objectives;
7. to insure careful selection of Filipino workers for overseas employment in
order to protect the good name of the PH abroad.
The DOLE
- by Administrative Code of 1987 (EO 292)
- the primary policy-making, programming, coordinating and administrative
entity of the Executive branch of the govt in the field of labor and
employment
Its Primary responsibilities:
1. The promotion of gainful EENT opportunities and the optimization of the
devt & utilization of the countrys manpower resources;
2. The advancement of workers welfare by providing for just and humane
working conditions and terms of EENT;
3. The maintenance of industrial peace by promoting harmonious, equitable
and stable EENT, relations that assure protection for the Rs of all concerned
parties.
RECRUITMENT & PLACEMENT OF WORKERS
Art 13. Definitions
Worker any member of the labor force whether employed or unemployed.
Recruitment & placement any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers and includes referrals,
contract services, promising or advertising for EENT, locally or abroad,
whether for profit or not: provided, that any person or entity w/c, in any
manner, offers or promises for a fee EENT to 2/more persons shall be
deemed engaged in recruitment & placement
Private fee-charging EEnt Agency any person/ entity engaged in the
recruitment & placement of workers for a fee w/c is charged
directly/indirectly from the workers or employers or both

License a document issued by the DOLE authorizing a person/entity to

operate a private EENT agency
Private recruitment entity any person/assoc engaged in the recruitment &
placement of workers, locally/overseas without charging, directly/indirectly
any fee from the workers or employers.
Authority a document issued by the DOLE authorizing a person/assoc to
engage in recruitment & placement activities as a private recruitment entity
Seaman any person employed in a vessel engaged in maritime navigation
Overseas EENT EENT of a worker outside the PH
Emigrant any person, worker or otherwise, who emigrates to a foreign
country by virtue of an immigrant visa or resident permit to its equivalent in
the country of destination
Art 14. EMPLOYMENT PROMOTION
The Sec of Labor shall have the power & authority:
1. to organize & establish new EENT offices in addition to existing EENT
offices under the DOLE as the need arises;
2. to organize & establish a nationwide job clearance & information system
to inform applicants registering w/ a particular EENT office of job
opportunities in other parts of the country as well as job opportunities
abroad;
3. to develop & organize a program that will facilitate occupational industrial
and geographical mobility of labor and provide assistance in the relocation of
workers from one area to another; and
4. to require any person, establishment, org, or institution to submit such
EENT information as may be prescribed by the Sec of Labor.
Bureau of Local Employment (BLE) assigned the effective allocation of
manpower resources in local
Ph Overseas Employment Administration (POEA) for overseas employment
Art 15. BUREAU OF EMPLOYMENT SERVICES (now BLE)
- primarily responsible for developing & monitoring a comprehensive EENT
program.
Powers & Duties:
1. To formulate & develop plans & programs to implement the EENT
promotion objectives of this Title;
2. To establish & maintain a registration and/or licensing system to regulate
private sector participation in the recruitment & placement of workers,
locally & overseas, and to secure the best possible terms & conditions of
EENT for Filipino contract workers and compliance therewith under such rules
& regulations as may be issued by the DOLE;

3. To formulate & develop EENT programs designed to benefit disadvantaged

groups & communities;
4. To establish & maintain a registration and/or work permit system to
regulate the EENT of aliens;
5. To develop a labor market information system in aid of proper manpower
and development planning;
6. To develop a responsible vocational guidance & testing system in aid of
proper human resources allocation; and
7. To maintain a central registry of skills, except seamen
Original & Exclusive Jurisdiction of the regional offices of DOLE
- over all matters/cases involving EE-EER relations including money claims,
arising out of or by virtue of any law or contracts involving Filipino workers
for overseas EENT except seamen: Provided, thet the Bureau of
Employment Services (BES) (now BLE) may, in the case of the NCR, exercise
such power, whenever the DOLE deems it appropriate.
The decisions of the regional offices of the BES if so authorized by the Sec of
DOLE shall be appealable to the NLRC upon the same grounds provided in
Art 233 hereof.
The decisions of the NLRC shall be final & unappealable.
Minister of Labor has the power to impose & collect fees, based on rates
recommended by the BES. Such fees shall be deposited in the National
Treasury as a special acct of the General Fund, for the promotion of the
objectives of the BES, subj to the provisions of Sec 40 of PD 1177.
PD 850 replaced BES w/ BLE, and created POEA
AO 186 made licensing of local recruitment agencies and the issuance of
work permits to non-resident aliens and EENT registration certificates to
resident aliens a function of the regional offices of DOLE
RA 8795 required the establishment of a Public Employment Service
Office (PESO) in capital towns, cities and other strategic areas
o PESO - serves as EENT service & information center
- Regularly obtains lists of job vacancies from EERS, publicizes them, invites
and evaluates applicants, and refers them for probable hiring
- Provides training and educational guidance and EENT counseling services
- Also renders special services to the public such as holding of jobfairs,
livelihood and self-employment bazaars
- Special credit assistance for placed overseas workers

- Special program for EENT of students (SPES) during summer or semestral

breaks
- Work appreciation seminars & conferences and
- Hiring of workers in infrastructure projects (WHIP)
Ra 6885 created WHIP, a program w/c requires the DPWH and private
contractors to hire 30% of skilled and 50% unskilled labor requirements from
the area where the project is being undertaken
Art 16. PRIVATE RECRUITMENT:
GR: No person/entity other than the public EENT offices, shall engage in the
recruitment & placement of workers.
: Exceptions
1. Public EEnt offices
2. Private recruitment entities
3. Private EENT agencies
4. Shipping or manning agents or representatives
5. The POEA
6. Construction contractors if authorized to operate by DOLE and the
Construction Industry Authority
7. Members of the diplomatic corps although hirings done by them have to
be processed through the POEA
8. Other persons/entities as may be authorized by the Sec of DOLE
Art 17. OVERSEAS EMPLOYMENT DEVT BOARD
POEA has taken over the functions of the Overseas Employment
Development Board (OEDB) and the National Seamen Board (NSB)
OFW a Filipino worker who is to be engaged, is engaged or has been
engaged in a renumenerated activity in a country of which he/shee is not a
legal resident
2 Classifications
1. Land-based contract workers other than a seaman including workers
ingaged in offshore activities whose occupation requires that majority of his
working/gainful hrs are spent on land
2. Sea-based those employed in a vessel engaged in maritime navigation
Principal Functions of the POEA
1. Formulation, implementation and monitoring of overseas employment of
Filipino workers;
2. Protection of their rights to fair and equitable employment practices;
3. Deployment of Filipino workers through govt-to-govt hiring
Regulatory Functions
1. Regulate private sector participation in the recruitment & overseas
placement of workers through its licensing and registration system;

2. Formulate & implement, in coordination w/ appropriate entities concerned,

when necessary, a system for promoting and monitoring the overseas EEnt
of Filipino workers taking into consideration their welfare and the domestic
manpower requirements;
3. Inform migrant workers not only of their rights as workers but also of their
rights as human beings;
4. Instruct and guide the workers how to assert their rights and provide the
available mechanism to redress violation of their rights;
5. In the recruitment & placement of workers to service the requirements for
trained and competent Filipino workers of foreign govts and their
instrumentalities, and such other employers as public interest may require,
deploy only to countries:
a. Where the PH has concluded Bilateral labor agreements or arrangements;
b. Observing and/or complying w/ the international laws and standards of
migrant workers;
c. Guaranteeing to protect the rights of Filipino migrant workers.
Adjudicatory Functions
1. Administrative cases involving violations of licensing rules & regulations
and registration of recruitment and EEnt agencies/entities; and
2. Disciplinary action cases and other special cases w/c are administrative in
character, involving employers, principals, contracting partners and Filipino
migrant workers.
Jurisdiction of POEA
1. all cases w/c are administrative in character, involving or arising out of
violations of rules & regulations relating to licensing & registration of
recruitment and employment agencies/entities; and
2. disciplinary action cases and other special cases w/c are administrative in
character, involving EERS, principals, contracting partners and Filipino
migrant workers
3. NO jurisdiction to enforce foreign judgment (must be brought before the
regular courts). POEA is an administrative (not a court), exercising
adjudicatory or quasi-judicial functions
4. NO jurisdiction over torts
Grounds for Disciplinary Action
1. Commission of a felony punishable by Ph laws or by the laws of the host
country;
2. Drug addiction/possession or trafficking of prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, esp where the laws of the host country prohibit intoxicating
drinks;

5. Gambling, esp where the laws of the host country prohibits the same;
6. Initiating/joining a strike or work stoppage where thelaws of the host
country prohibit strikes or similar actions;
7. Creating trouble at the worksite or in the vessel;
8. Embezzlement of company funds or of moneys and properties of a fellow
worker entrusted for delivery to kins or relatives in the PH;
9. Theft/robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly weapons;
13. Unjust refusal to depart for the worksite after all employment and travel
documents have been duly approved by the approp govt agency/ies; and
14. Violation/s of the laws and sacred practices of the host country and
unjustified breach of govt-approved EENT contract by a worker
COMPROMISE AGREEMENT
-consistent w/ the policy encouraging amicable settlement of labor disputes
Sec 10 of RA 8042 allows resolution by compromise of cases filed w/ the
NLRC
- any compromise agreement on money claims inclusive of damages shall be
paid w/in 4 months from the approval of the settlement
Penalties for Non-compliance of the mandatory period for resolution of cases
1. The salary of such official who fails to render his decision/resolution w/in
the prescribed pd shall be, or caused to be, withheld until such official
complies therewith;
2. Suspension for not more than 90 days; or
3. Dismissal w/ disqualification to hold any appointive public office for 5 yrs
EER/EE Relations Cases
Millares & Lagda v NLRC: SC: seafarers are contractual EES
Premature Termination of Contract
If EE is terminated before end of contract w/o just cause, EERS will be
ordered to pay their salaries corresponding to the unexpired portion of their
EENT contract
Pretermination Under RA 8042
A worker dismissed from overseas EENT w/o just cause as defined by
law/contract is entitled to full reimbursement of his placement fee w/
interest
at 12% per annum, plus the salary for the unexpired portion of their EENT
contract.
Due Process required to terminate employment

Ex: in case of seamen must be given written notice of the charges against
him, and afforded a formal investigation where he can defend himself or thru
a representative before he can be dismissed & disembarked. The EER is
required to furnish him w/ 2 notices: (1) written notice of charge; and (2)
written notice of dismissal
Contracted but not Deployed: Perfected Contract
Death benefits of Seafarers
- entitled to death and other benefits under w/c ever is higher (foreign law or
Ph law)
- entitled to death benefits if death occurs during the term of his contract of
employment, even if death is not work-related death is caused by their
own doing
Disability loss or impairment of a physical or mental function resulting from
injury/sickness
Permanent disability the inability of a worker to perform his job for more
than 120 days, regardless of WON he loses the use of any part of his body
Total Disability disablement of an EE to earn wages in the same kind of
work of similar nature that he was trained for or accustomed to perform, or
any kind of work w/c a person of his mentality and attainments could do. It
does not mean absolute helplessness.
In disability compensation, it is not the injury w/c is compensated, but rather
it is the incapacity to work resulting in the impairment of ones earning
capacity
Disability benefits by seamen a matter governed not only by medical
findings but by law & contract
- shall be paid beginning on the 1st day of such disability. If caused by an
injury/sickness it shall not be paid longer than 120 consec days except
where such injury/sickness still requires medical attendance beyond 120
days
but not to exceed 240 days from onset of disability in w/c case benefit for
temporary total disability shall be paid.
In case of differing medical assessment
a.) when a seafarer sustains a work-related illness/injury while on board, his
fitness/unfitness to work shall be determined by the company-designated
physician.
b.) If the physician appointed by the seafarer disagrees w/ the companydesignated physicians assessment, the opinion of a 3rd doctor may be
agreed jointly bet the EER and the seafarer to be the decision final and
binding on them
Agencies Given the Duty to promote the welfare & rights of migrant workers:

1. DFA
2. DOLE
3. POEA
4. OWWA Overseas Workers Welfare Administration provides social &
welfare services including insurance coverage, legal assistance, placement
assistance and remittance services to Filipino overseas workers. Under
RA8042, it shall provide the Filipino migrant worker & his faily assistance in
the enforcement of contractual obligs by agencies, entities and/or their
principals;
5. RPM - Re-Placement and Monitoring Center develops livelihood programs
for the returning workers to reintegrate the returning migrant workers to the
Ph society;
6. NLRC tasked w/ the settlement/adjudication of labor disputes
Art 18: BAN ON DIRECT HIRING
GR: Direct hiring of Filipino workers for overseas EENT is not allowed
Exceptions:
1. Members of Diplomatic corps;
2. International organizations;
3. Other employers as may be allowed by DOLE; and
4. Name hires individual workers who are able to secure contracts for
overseas EENT on their own efforts and representations w/o
assistance/participation of any agency. Their hiring nonetheless, shall pass
through the POEA for processing purposes
Rationale of the Prohibition
1. To assure the best possible terms & conditions of work to the EE; and
2. To assure the foreign EER that he hires only qualified Filipino workers
Art 19: COMMISSION ON FILIPINO OVERSEAS
CFO attached to the DFA; replaced the Office of Emigrant Affairs.
- assists in the formulation of policies affecting Filipinos overseas and
formulates an integrated program that promotes the welfare of Filipinos
overseas
Art 21. FOREIGN SERVICE ROLE AND PARTICIPATION
- necessary to monitor the status of OFWs in their respective areas of
assignment and insure that they are not exploited or abused by their foreign
principal EERS
Art 22. MANDATORY REMITTANE OF FOREIGN EXCHANGE EARNINGS

- All OFWs are required to remit a portion of their foreign exchange earnings
ranging from 50% - 80% depending on the workers kind of job, to their
families, dependents, and/or beneficiaries.
Seamen/Mariners 80%
Workers for Filipino Contractors & Construction companies 70%
Professionals whose EENT contract provide for lodging facilities 70%
Professionals w/o Board & Lodging 50%
Domestic and other service workers 50%
Exceptions to Mandatory Remittance
1. Fil servicemen working in US military installations;
2. Where the workers immediate family members, dependents, or
beneficiaries are residing w/ him abroad;
3. Immigrants and Fil professionals and EEs working w/ UN agencies or
specialized bodies
Effects of Failure to Remit
1. Workers who fail to comply w/ the mandatory remittance reqment shall be
suspended/excluded from the list of eligible workers for overseas EENT.
Subsequent violations shall warrant his repatriation.
2. EERS who fail to comply shall be excluded from the overseas EENT
program. Private EENT agencies/entities shall face cancellation or revocation
of their licenses or authority to recruit, w/o prejudice to other liabilities under
existing laws and regulations
CH 2: REGULATION OF RECRUITMENT & PLACEMENT ACTIVITIES
Art 25: PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT & PLACEMENT
OF WORKERS
Private Sectors that can participate
1. Private EENT agencies;
2. Private recruitment agencies;
3. Shipping or manning agencies;
4. Such other persons as may be authorized by the Sec of DOLE; and
5. Construction contractors w/ a duly issued authority to operate private
recruitment entities
Qualifications for Participation
1. Citizenship requirement
a. Filipino citizens; or
b. Corporations, partnerships or entities at least 75% of the authorized and
voting capital stock of w/c is owned & controlled by Filipino citizens.
2. Capitalization
a. Private EENT agency for local EENT

i. For single proprietorship or partnership minimum net worth of 200k pesos

ii. For corporations a minimum paid up capital of 5ook pesos
b. Private recruitment or manning agency for overseas EENT
i. For single proprietorship or partnership P2M minimum capital
ii. For corps P2M minimum paid up capital, Provided, that those w/ existing
licenses shall, w/in 4 yrs from effectivity hereof, increase their capitalization
or paid-up capital, as the case may be, to P2M at the rate of 250K every yr.
3. Those not otherwise disqualified by law or other govt regulations to
engage in the recruitment & placement of workers for overseas EENT
Disqualified from Recruitment & Placement of Workers for Overseas EEnt
whether for profit or not
1. Travel agencies & sales agencies of airline companies;
2. Officers/members of the board of any corp or members in a partnership
engaged in the business of a travel agency;
3. Corps & partnerships, when any of its officers, members of the board or
partners, is also an officer, member of the board or partner of a corp or
partnership engaged in the business of a travel agency (interlocking officers)
4. Persons, partnerships or corps which have derogatory records, such as but
not limited to:
a. Those certified to have derogatory record/info by the NBI or by the Antiillegal Recruitment Branch of the POEA;
b. Those against whom probable cause or prima facie finding of guilt for
illegal recruitment or other related cases exists;
c. Those convicted of cases and/or crimes involving moral turpitude;
d. Those agencies whose licenses have been previously cancelled or revoked
by POEA for violation of RA 8042, PD 442 as amended and their IRR as well
as the Labor Codes IRR
e. Officials/EES of the DOLE or other govt agencies directly involved in
overseas EENT program and their relatives w/in the 4th degree of
consanguinity or affinity; and
f. Those whose License have been previously cancelled o revoked
Art 29: NON-TRANSFERABILITY OF LICENSE AUTHORITY
1. It may be used only b the one in whose favor it was issued; hence, it
cannot be assigned, conveyed or transferred to any other person/entity.
2. It must be used only in the place stated in the license. Thus, could only
undertake recruitment & placement activities in the region where the license
was granted.
3. The recruitment & placement activities must be undertaken at their
authorized official addresses.

4. Provincial recruitment and/or job fairs may be allowed only when

authorized by POEA in writing.
* Change of ownership of single proprietorship licensed to engage in
overseas EENT shall cause the automatic revocation of the license.
Art 30: BONDS
The Sec of Labor shall promulgate a schedule of fees for the registration of
all applicants for license or authority.
Art 31. BONDS
All applicants for license/authority shall post such cash and surety bonds as
determined by the Sec of Labor including escrow deposits.
Purposes:
1. To guarantee compliance w/ prescribed recruitment procedures, rules &
regulations, and terms & conditions of EENT; and
2. To ensure prompt & effective recourse against such companies when held
liable for applicants/workers claim
Exemption from Garnishment
Cash bond filed by applicants for license/authority is not subj to
garnishment by a judgment creditor of the agency.
Should the bond/deposit in escrow or any part thereof be garnished, the
same should be replenished by the agency w/in 15 days from notice
from the POEA. Failure to replenish the same w/in the said pd shall cause the
suspension of the license
Note: POEA has the power to enforce liability under cash & surety bonds.
Art 32: FEES TO BE PAID BY WORKERS
The applicant can be charged w/ fees only after he has obtained EENT or
has actually commenced EENT
Fees paid shall always be covered w/ the approp receipt clearly showing
the amount paid.
POEA has the power to:
1. Suspend/cancel the license; and
2. Order the refund/reimbursement of such illegally collected fees
Prohibition on Charging Fees
1. Placement fees cannot be collected from a hired worker until he has
signed the EENT contract & shall be covered by receipts clearly showing the
amt paid

2. Manning agencies shall not charge any fee from seafarer-applicants for its
recruitment & placement services. All expenses for hiring seamen shall be
shouldered by foreign shipping principals.
3. No other fees/charges, including processing fees shall be imposed against
any worker.
Art 34 & Section 6 RA 8042: PROHIBITED PRACTICES:
It shall be unlawful for any indiv, entity, licensee or holder of authority:
1. To charge greater amt than that specified in the schedule of allowable fees
(illegal exaction);
2. To furnish any false info in relation to recruitment/EENT (false information);
3. To give any false notice, testimony, etc. or commit any act of
misrepresentation to secure a license or authority (false statements);
4. To induce or attempt to induce a worker to quit his job in lieu of another
offer unless it is designed to liberate the worker from oppressive terms of
EENT (pirating);
5. To influence of attempt to influence any person/entity no to employ any
worker who has not applied for EENT through his agency (influencing not to
employ);
6. To engage in the recruitment/placement of jobs harmful to public health,
morality or to the dignity of the PH (harmful jobs);
7. To obstruct or attempt to obstruct inspection by the Labor Sec or his
authorized reps (obstruct inspection);
8. To fail to file reports on the status of EENT, placement, etc. and such other
matters as may be required by the Sec of Labor (failure to comply w/ rules &
regulations);
9. To substitute or alter EENT contracts w/o the approval of the Sec of Labor
(alteration of contracts);
10. To become an officer or member of the board of any corp engaged in the
mgt of a travel agency; and
11. To withhold travel docs from applicant workers before departure for
unauthorized monetary considerations (withholding documents).
Art 35: SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY
Non License or Non-Holder of Authority any person/corp/entity w/c has not
been issued a valid license or authority to engage in recruitment &
placement by the Sec of Labor, or whose license or authority has been
suspended, revoked or cancelled by the POEA and the Secretary.
Grounds for Revocation of License
1. Incurring an accumulated 3 counts of suspension by an agency based on
final and executor orders w/in the validity period of its license;

2. Violation/s of the conditions of license;

3. Engaging in acts of misrepresentation for the purpose of securing a license
or renewal thereof; and
4. Engaging in the recruitment or placement of workers to jobs harmful to
the public health or morality or to the dignity of the RP
Grounds for Suspension/Cancellation of License
1. The acts prohibited under Art 34;
2. Charging a fee before the worker is employed or in excess of the
authorized amt;
3. Doing recruitment in places outside its authorized area;
4. Deploying workers w/o processing through the POEA; and
5. Publishing job announcements w/o POEAs prior approval
Jurisdiction
The DOLE Sec and the POEA Admin have concurrent jurisdiction to suspend
or cancel a license
Liability of Recruitment Agency
Solidarily liable w/ the foreign principal for unpaid salaries of a worker it
recruited. Before recruiting, the agency is required to submit a doc
containing its power to sue and be sued jointly and solidarily w/ the principal
or foreign-based employer for any of the violations of the recruitment
agreement, and the contracts of employment
Note: The recruitment agency may still be sued even if agency agreement
bet recruitment agency & principal is already severed if no notice of the
termination was given to the EE
Exception to Liability of Recruitment agency
When workers themselves insisted for the recruitment agency to send
them back to their foreign EER despite their knowledge of its inability to pay
their wages
Contract by Prncipal
Even if it was the principal of the manning agency who entered into
contract w/ the EE, the manning agent in the PH is jointly & solidarily liable
w/ the principal
Suability of Foreign Corps
A foreign corp that, thru unlicensed agents, recruits workers in the country
may be suid in and found liable by Ph courts
CH 3: MISCELLANEOUS PROVISIONS (as amended by RA 8042)

Illegal Recruitment any act of (CETCHUP) canvassing, enlisting,

transporting, contracting, utilizing, or procuring workers and includes (CRAP)
contract services, referrals, or advertising, promising for employment
abroad, whether for profit or not, when undertaken by a non-licensee or nonholder of authority; Provided that any such non-licensee or non-holder of
authority who in any manner, offers or promises for a fee employment
abroad to 2 or more persons shall be deemed so engaged. Also includes the
act of reprocessing workers through a job order that pertains to nonexistent
work, work different from the actual overseas work, or work w/ a different
EER whether registered or not w/ the POEA
It shall likewise include the commission of the ff prohibited acts whether
committed by a non-licensee or non-holder of authority or a licensee or a
holder of authority:
1. Those prohibited practices under Art 34;
2. Failure to actually deploy w/o valid reason as determined by DOLE;
3. Failure to reimburse expenses incurred by the worker in connection w/ his
documentation & processing for purposes of deployment, in cases where the
deployment does not actually take place w/o the workers fault; and
4. Recruitment & placement activities of agents or representatives appointed
by a licensee, whose appointments were not previously authorized by the
POEA shall likewise constitute illegal recruitment.
Elements of Illegal Recruitment
1. The offender is a licensee/non-licensee or holder/non-holder of authority
engaged in the recruitment & placement of workers; and
2. The offender undertakes either any recruitment activities devided under
Art 13 (b) or any prohibited practices in Art 34
Simple Illegal Recruitment Where a person:
1. undertakes any recruitment activity defined under Art 13(b) or any
prohibited practice enumerated under Arts 34 & 38 of the LC; and
2. does not have a license or authority to lawfully engage in the recruitment
& placement of any workers.
Illegal Recruitment in Large Scale further requires a 3rd element:
3. The offense is committed against 3/more persons, individually or as a
group
Illegal Recruitment as Economic Sabotage:
1. When illegal recruitment is committed by a syndicate (when 3/more
persons conspire or confederate w/ one another in carrying out an unlawful
or illegal transaction, enterprise or scheme);

2. When illegal recruitment is committed in a large scale (if committed

against 3/more persons individually or as a group
Consequences of Conviction
1. Automatic revocation of license/authority;
2. Forfeiture of the cash & surety bonds;
3. Conviction for the crime of estafa, if found guilty thereof
Illegal Recruitment vs Estafa
Illegal recruitment is malum prohibitum,
whereas estafa is malum in se (criminal intent necessary for conviction)
a person may be charged & convicted for both
Acts Constituting Estafa
- the accused represented themselves to complainants to have the capacity
to send workers abroad although they did not have any authority or license,
enabling them to obtain placement fee
Venue of criminal action arising from Illegal Recruitment
The complainant may, at his option file at the RTC of the province/city:
a.) where the offense was committed; or
b.) where the offended party resides at the time of the commission of the
offense
Prescriptive Period Imprisonment Fine
Simple 5 yrs 12-20 yrs P1-2M
Economic Sabotage 20 yrs Life P2-5M
Note: Max penalty if the person illegally recruited is less than 18 y/o or
committed by a non-licensee or non-holder of authority
Absence of receipts evidencing payment, not fatal to prosecutions case for
illegal recruitment as long as the witnesses can positively show through
their respective testimonies that the accused is the one involved in
prohibited recruitment
Liability of Local EEnt agency solidarily liable w/ the foreigh principal for
unpaid salaries of a worker recruited. Before recruiting, the agency is
required to submit a doc containing its power to sue and be sued jointly and
solidarily w/ the principal or foreign-based EER for any of the violations of the
recruitment agreement and the contracts of EEnt
Liability of Company Engaged in Illegal Recruitment may be held as
principal, together his EER, if it is shown that he actively & consciously
participated in illegal recruitment
Issuance of search warrant/warrant of arrest
Art 38 is unconstitutional inasmuch as it gives the Sec of Labor the power
to issue search or arrest warrants

 The exception is in cases of deportation whom the President or the

Commissioner of Immigration may order arrested, following a final roder of
deportation
Note: the Sec of Labor may order closure of illegal recruitment
establishments because it is only administrative & regulatory in nature
TITLE 2: EMPLOYMENT OF NON-RESIDENT ALIENS
Alien Employment Permit (AEP) required for entry into the country for
employment purposes and is issued after determination of the nonavailability of a person in the pH who is competent, able and willing at the
time of application to perform the services for w/c the alien is desired
All foreign nationals who intend to engage in gainful EENT in the PH shall
apply for AEP
Employment Permit Required
1. all foreign nationals seeking admission to the PH for the purpose of EENT;
2. all non-resident foreign nationals already working in the PH;
3. non-resident foreign nationals admitted to the PH on non-working visas
and who wish to seek EENT; and
4. missionaries or religious workers who intend to engage in gainful EENT.
Note: AEP should be secured regardless of the source of compensation and
duration of the EENT, whether the EENT is part-time or temp
An AEP is issued based on the ff:
1. Compliance by the applicant EER or the foreign national w/ the substantive
& documentary requirements;
2. Determination of DOLE Sec that there is no available Filipino national who
is competent, able and willing to do the job for the EER; and
3. Assessment of the DOLE Sec that the EENT of the foreign national will
redound to national benefit
Note: Understudy Training Program is no longer a requirement in the
issuance of AEP and the EEr has now the option to implement transfer of
technology
Requisite for EENT of Resident Aliens:
Immigrants & resident aliens are not required to secure a working permit.
They are required to secure their Alien Employment Registration Cert (AERC)
Exemption from Permit
1. All members of the Diplomatic service and foreign govt officials accredited
by and w/ reciprocity arrangement w/ the Ph govt;
2. Officers and staff of international orgs of w/c the PH is a member, and their
legitimate spouses desiring to work in the PH;

3. Foreign nationals elected as members of Governing Board who do not

occupy any other position, but have only voting rights in the corp;
4. All foreign nationals granted exemption by law;
5. Owners & representatives of foreign nationals whose companies are
accredited by the POEA who come to the PH for a limited period and solely
for the purpose of interviewing Filipino applicants for EENT abroad;
6. Foreign nationals who come to the PH to teach, present and/or conduct
research studies in univs and colleges as visiting, exchange or adjunct
professors under formal agreements bet the univs or colleges in the PH an
foreign univs or colleges; or bet the Ph govt and foreign govt; provided that
the exemption is on a reciprocal basis; and
7. Resident foreign nationals.
Grounds for denial of Application of AEP
1. Misrepresentation of facts in the application;
2. Submission of falsified docs;
3. The foreign national has a derogatory record; or
4. Availability of a Fil who is competent, able and willing to the job intended
for the alien.
Grounds for suspension of AEP
1. The continued stay of the foreign national my result in damage to the
interest of the industry of the country; and
2. the EENT of the alien is suspended by the EER or by the order of the court
Grounds for revocation of AEP
1. Non-compliance w/ any of the requirement/conditions for w/c the AEP was
issued;
2. Misrepresentation of facts in the application;
3. Submission of falsified docs;
4. Meritorious objection or information against the EENT of foreign national
as determined by the Regional Dir;
5. Foreign national has a derogatory record; and
6. EER has terminated the EENT of the foreign national.
Validity of EENT Permit
1 yr, unless the EENT contract, consultancy services or other modes of
engagement provides otherwise, w/c shall in no case exceed 5yrs
fine for working w/o or with an expired AEP P10K for every year or a
fraction thereof.

Rule on Nationalized Business

GR: Foreigners may NOT be employed in certain nationalized business.
Anti-Dummy Law 2-A prohibits the EENT of aliens in entities engaged in
business whose exercise or enjoyment is reserved only to Fils or to
corporations or assocs whose capital should be at least 60% Fil-owned
Exceptions:
1. Where the Sec of Justice specifically authorizes the EEnt of technical
personnel;
2. Aliens who are members of the Board of directors of corps in proportion to
their allowable participation in the capital of such entities; and
3. Enterprises registered under the Omnibus Investment Code in case of
technical, supervisory or advisory positions, but for a limited pd.
Art 41. PROHIBITION AGAINST TRANSFER OF EENT
1. Aliens shall not transfer to another job or change his EER w/o prior
approval of the Sec of Labor;
2. Non-resident aliens shall not take up EENT in violation of the provisions of
the Code.
Note: Violations of the abovementioned acts will subj the alien to the
punishment in Art 289 & 290 and to deportation after service of sentence
BOOK 2: HUMAN RESOURCES
TITLE 1: NATIONAL MANPOWER DEVT PROGRAM
CH 1: NATIONAL POLICIES & ADMINISTRATIVE MACHINERY FOR THEIR
IMPLEMENTATION
Art 43-56 TECHNICAL EDUCATION AND SKILLS DEVT AUTHORITY (TESDA)
- replaced the National Manpower & Youth Council under RA 7796
Statement of Goals & Objectives
1. To attain international competitiveness;
2. To meet demands for quality middle-level manpower;
3. To disseminate scientific & technical knowledge base;
4. To recognize & encourage the complementary roles of pub & private
institutions; and
5. To inculcate desirable values.
Middle-level Manpower
1. Those who have acquired practical skills & knowledge through formal or
non-formal educ & training equivalent to at least a secondary educ but
preferably a post-secondary educ w/ a corresponding degree/diploma; or
2. Skilled workers who have become highly competent in their trade or craft
as attested by industry.

TITLE 2: TRAINING & EMPLOYMENT OF SPECIAL WORKERS

CH1: TYPES OF SPECIAL WORKERS
1. Apprentice
2. Learner
3. Handicapped
Art 57 STATEMENT OF OBJECTIVES FOR THE TRAINING & EENT OF SPECIAL
WORKERS
1. To help meet the demand of the economy for trained manpower;
2. To establish a national apprenticeship program; and
3. To establish apprenticeship standards for the protection of apprentices.
Art 58: DEFINITION OF TERMS
Apprenticeship practical training on the job supplemented by related
theoretical instruction, for a highly skilled or technical instruction for a period
of 3-6 months
Apprentice a person undergoing training for an approved apprenticeable
occupation during an established period assured by an apprenticeship
agreemt
Apprenticeable Occupation an occupation officially endorsed by a tripartite
body and approved for apprenticeship by the TESDA (no longer the Sec of
Labor)
Apprenticeship Agreement an EENT contract wherein the EER binds himself
to train the apprentice and the apprentice in turn accepts the terms of
training
On-the-job training practical work experience through actual participation
in productive activities given to or acquired by an apprentice
Highly technical industries a trade, business, enterprise, industry or other
activity, w/c is engaged in the application of advanced technology
Art 59: QUALIFICATIONS OF APPRENTICES
1. At least 15 y/o, provided that if below 18 y/o, he shall not be eligible for
hazardous occupation;
2. Physically fit for the occupation in w/c he desires to be trained;
3. Possess vocational aptitude and capacity for the particular occupation as
established through appropriate tests; and
4. Possess the ability to comprehend and follow oral & written instructions.
Note: Total physical fitness is not required of the apprentice-applicant unless
it is essential to the expeditious and effective learning of the occupation.
Only physical defects w/c constitute real impediments to effective perf as
determined by the plant apprenticeship committee may dispqualify an
applicant

Art 60: EMPLOYMENT OF APPRENTICES

Qualifications to be met by EER:
1. Only EERS in highly technical industries may employ apprentices; and
2. Only in apprenticeable occupations as determined by the TESDA.
Requisites for a Valid apprenticeship
1. Qualifications of apprentice are met;
2. Apprentice earns not less than 75% of the prescribed minimum salary;
3. Apprenticeship agreemt duly executed & signed;
4. Apprenticeship program must be approved by the TESDA; otherwise the
apprentice shall be deemed a regular EE;
5. Period of apprenticeship shall not exceed 6 months
Note: at the termination of the apprenticeship, the EER is not required to
continue the EENT
There is no valid apprenticeship if:
1. The agreemt submitted to the TESDA was made long after the workers
started undergoing apprenticeship;
2. The work performed by the apprenticeship was different from those
allegedly approved by TESDA;
3. The workers undergoing apprenticeship are already skilled workers;
4. The workers were required to continue undergoing apprenticeship beyond
6mos.
Art 61: CONTENTS OF APPRENTICESHIP AGREEMENT
1. Full name & address of the contracting parties;
2. Date of birth of the apprentice;
3. Name of trade, occupation or job in w/c the apprentice shall be trained
and the dates on w/c such training will begin and will proximately end;
4. Approp number of hrs of OJT w/ compulsory theoretical instruction w/c the
apprentice shall undergo during his training;
5. Schedule of the work processes of the trade/occupation in w/c the
apprentice shall be trained and the approx. time to be spent on the job in
each process;
6. Graduated scale of wages to be paid to the apprentice;
7. Probationary pd of the apprentice during wc either party ay summarily
terminate their agreemt; and
8. A clause that if the EER is unable to fulfill his training oblig, he may
transfer the agreemt, w/ the consent of the apprentice to any other EER who
is willing to assume such oblig.
Working Hrs shall not exceed the max number of hrs prescribed by law, if
any, for a worker of his age and sex. Time spent in compulsorily theoretical
instruction shall be considered hrs of work. An apprentice not otherwise

barred by law from working 8hrs may be requisted by his EER to work
overtime and paid accordingly.
Art 62: SIGNING OF APPRENTICESHIP AGREEMENT
Who signs:
1. The apprentice, if of age, otherwise, by his parent or guardian, or in the
latters absence, by an authorized rep of TESDA; and
2. EER or his duly authorized rep
Art 63: VENUE OF APPRENTICESHIP PROGRAM
1. Within the sponsoring firm, establishment or entity; or
2. Within a DOLE training center or other public training institutions; or
3. Initial training in trade fundamentals in a training center or other
institutions w/ subsequent actual work participation w/in the sponsoring firm
or entity during the final stage of training.
Art 64: SPONSORING OF APPRENTICESHIP PROGRAMS
BY:
1. The plant, shop or premises of the EER or firm concerned if the
apprenticeship program is organized by an indiv EER or firm;
2. The premises of one or several firms designated for the purpose by the
organizer of the program if such organizer is an assoc of EERS, civic group
and the like; and
3. DOLE Training Center or other public training institutions w/ w/c the TESDA
has made approp arrangements.
Art 65-67: VIOLATION OF APPRENTICESHIP AGREEMENT
Art 65: Investigation of violation of apprenticeship agreement
1. Either party to an agreemt may terminate the same after the probationary
pd only for a valid cause.
2. Action may be initiated upon complaint of any interested person or upon
DOLEs own initiative.
Valid Cause to terminate agreement
1. By the EER:
a. Habitual absenteeism in OJT and related theoretical instructions;
b. Willful disobedience of company rules or insubordination to lawful order of
a superior;
c. Poor physical condition, permanent disability or prolonged illness w/c
incapacitates the apprentice from working;
d. Theft or malicious destruction of company property and/or equipment
e. Poor efficiency or perf on the job or in the classroom for a prolonged
period despite warnings duly given to the apprentice; and
f. Engaging in violence or other forms of gross misconduct inside the EERs
premises

2. By the apprentice:
a. Substandard or deleterious working conditions w/in the EERs premises;
b. Repeated violations by the EER of the terms of the apprenticeship
agreemt;
c. Cruel or inhumane treatment by the EER or his subordinates;
d. Personal problem s/c in the opinion of the apprentice shall prevent him
from a satisfactory perf of his job; and
e. Bad health or continuing illness.
Art 66: Appeal
The decision of an authorized agency of the DOLE may be appealed to the
Sec of Labor w/in 5 days form rcpt of the adverse decision.
The decision of the Sec of Labor shall be final & executor.
Art 67 Exhaustion of Administrative Remedies
1. The exhaustion of administrative remedies is a condition precedent to the
institution of action.
2. The plant apprenticeship committee shall have initial responsibility for
settling differences arising out of apprenticeship agreements.
Art 68: APTITUDE TESTS
ANTONIO M. SERRANO VS. GALLANT MARITIME SERVICES, INC.
FACTS:
Petitioner Antonio Serrano was hired by respondents Gallant Maritime
Services, Inc. and Marlow Navigation Co., Inc., under a POEA-approved
contract of employment for 12 months, as Chief Officer, with the basic
monthly salary of US$1,400, plus $700/month overtime pay, and 7 days paid
vacation leave per month.
On the date of his departure, Serrano was constrained to accept a
downgraded employment contract upon the assurance and representation of
respondents that he would be Chief Officer by the end of April 1998.
Respondents did not deliver on their promise to make Serrano Chief Officer.
Hence, Serrano refused to stay on as second Officer and was repatriated to
the Philippines, serving only two months and 7 days, leaving an unexpired
portion of nine months and twenty-three days.
Upon complaint filed by Serrano before the Labor Arbiter (LA), the dismissal
was declared illegal.
On appeal, the NLRC modified the LA decision based on the provision of RA
8042.

Serrano filed a Motion for Partial Reconsideration, but this time he

questioned the constitutionality of the last clause in the 5th paragraph of
Section 10 of RA 8042.
ISSUES:
1. Whether or not the subject clause violates Section 10, Article III of the
Constitution on non-impairment of contracts;
2. Whether or not the subject clause violate Section 1, Article III of the
Constitution, and Section 18, Article II and Section 3, Article XIII on labor as a
protected sector.
HELD:
On the first issue.
The answer is in the negative. Petitioners claim that the subject clause
unduly interferes with the stipulations in his contract on the term of his
employment and the fixed salary package he will receive is not tenable.
The subject clause may not be declared unconstitutional on the ground that
it impinges on the impairment clause, for the law was enacted in the exercise
of the police power of the State to regulate a business, profession or calling,
particularly the recruitment and deployment of OFWs, with the noble end in
view of ensuring respect for the dignity and well-being of OFWs wherever
they may be employed.
On the second issue.
The answer is in the affirmative.
To Filipino workers, the rights guaranteed under the foregoing constitutional
provisions translate to economic security and parity.
Upon cursory reading, the subject clause appears facially neutral, for it
applies to all OFWs. However, a closer examination reveals that the subject
clause has a discriminatory intent against, and an invidious impact on, OFWs
at two levels:
First, OFWs with employment contracts of less than one year vis--vis OFWs
with employment contracts of one year or more;
Second, among OFWs with employment contracts of more than one year;
and
Third, OFWs vis--vis local workers with fixed-period employment;
The subject clause singles out one classification of OFWs and burdens it with
a peculiar disadvantage.
Thus, the subject clause in the 5th paragraph of Section 10 of R.A. No. 8042
is violative of the right of petitioner and other OFWs to equal protection.
The subject clause or for three months for every year of the unexpired
term, whichever is less in the 5th paragraph of Section 10 of Republic Act
No. 8042 is DECLARED UNCONSTITUTIONAL.
People of the Philippines (petitioner) v Jamilosa (repondent)
GR No. 169076 January 23, 2007

Callejo, Sr.,:
FACTS:
Sometime in the months of January to February, 1996, representing to have
the capacity, authority or license to contract, enlist and deploy or transport
workers for overseas employment, did then and there, willfully, unlawfully
and criminally recruit, contract and promise to deploy, for a fee the herein
complainants, namely, Imelda D. Bamba, Geraldine M. Lagman and Alma E.
Singh, for work or employment in Los Angeles, California, U.S.A. in Nursing
Home and Care Center.
Prosecution presented three witnesses, namely Imelda Bamba, Geraldine
Lagman and Alma Singh.
According to Bamba, she met the appellant on a bus. She was on her way to
SM North Edsa where she was a company nurse. Appellant introduced
himself as a recruiter of workers for employment abroad. Appellant told her
he could help her get employed as nurse. Appellant gave his pager number
and instructed her to contact him is shes interested. Sometime in January
1996, appellant fetched her at her office, went to her house and gave him
the necessary documents and handed to appellant the amount of US$300.00
and the latter showed her a photocopy of her supposed US visa. However,
the appellant did not issue a receipt for the said money. Thereafter, appellant
told her to resign from her work because she was booked with Northwest
Airlines and to leave for USA on Feb, 1996. On the scheduled departure,
appellant failed to show up. Instead, called and informed her that he failed to
give the passport and US visa because she had to go to province because his
wife died. Trying to contact him to the supposed residence and hotel where
he temporarily resided, but to no avail.
Winess Lagman testified that she is a registered nurse. In January 1996, she
went to SM North Edsa to visit her cousin Bamba. At that time Bamba
informed her that she was going to meet to appellant. Bamba invited
Lagman to go with her. The appellant convinced them of his ability to send
them abroad. On their next meeting, Lagman handed to the latter the
necessary documents and an amount of US$300.00 and 2 bottles of black
label without any receipt issued by the appellant. Four days after their
meeting, a telephone company called her because her number was
appearing in appellants cell phone documents. The caller is trying to locate
him as he was a swindler. She became suspicious and told Bamba about the
matter. One week before her scheduled flight, appellant told her he could not
meet them because his mother passed away.
Lastly, Alma Singh, who is also a registered nurse, declared that she first met
the appellant at SM North Edsa when Imelda Bamba introduced the latter to
her. Appellant told her that he is an undercover agent of FBI and he could fix

her US visa. On their next meeting, she gave all the pertinent documents.
Thereafter, she gave P10,000 to the appellant covering half price of her
plane ticket. They paged the appellant through his beeper to set up another
appointment but the appellant avoided them as he had many things to do.
The accused Jamilosa testified on direct examination that he never told
Bamba that he could get her a job in USA, the truth being that she wanted to
leave SM as company nurse because she was having a problem thereat.
Bamba called him several times, seeking advices from him. He started
courting Bamba and went out dating until latter became his girlfriend. He
met Lagman and Singh thru Bamba. As complainants seeking advice on how
to apply for jobs abroad, lest he be charged as a recruiter, he made Bamba,
Lagman and Singh sign separate certifications, all to effect that he never
recruited them and no money was involved. Bamba filed an illegal
recruitment case against him because they quarreled and separated.
RTC rendered judgment finding accused guilty beyond reasonable doubt of
illegal recruitment in large scale.
ISSUE: Illegal Recruitment in a large scale?
HELD: Recruitment and placement" refers to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, or procuring workers, and
includes referrals, contract services, promising or advertising for
employment, locally or abroad, whether for profit or not. Provided, That any
person or entity which, in any manner, offers or promises for a fee
employment to two or more persons shall be deemed engaged in
recruitment and placement.
Illegal recruitment shall mean any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers and includes referring,
contract services, promising or advertising for employment abroad, whether
for profit or not, when undertaken by a non-licensee or non-holder of
authority. Provided, That any such non-licensee or non-holder who, in any
manner, offers or promises for a fee employment abroad to two or more
persons shall be deemed so engaged.
To prove illegal recruitment in large scale, the prosecution is burdened to
prove three (3) essential elements, to wit: (1) the person charged undertook
a recruitment activity under Article 13(b) or any prohibited practice under
Article 34 of the Labor Code; (2) accused did not have the license or the
authority to lawfully engage in the recruitment and placement of workers;
and (3) accused committed the same against three or more persons
individually or as a group. As gleaned from the collective testimonies of the
complaining witnesses which the trial court and the appellate court found to
be credible and deserving of full probative weight, the prosecution mustered
the requisite quantum of evidence to prove the guilt of accused beyond

reasonable doubt for the crime charged. Indeed, the findings of the trial
court, affirmed on appeal by the CA, are
conclusive on this Court absent evidence that the tribunals ignored,
misunderstood, or misapplied substantial fact or other circumstance.
The failure of the prosecution to adduce in evidence any receipt or document
signed by appellant where he acknowledged to have received money and
liquor does not free him from criminal liability. Even in the absence of money
or other valuables given as consideration for the "services" of appellant, the
latter is considered as being engaged in recruitment activities. It can be
gleaned from the language of Article 13(b) of the Labor Code that the act of
recruitment may be for profit or not. It is sufficient that the accused promises
or offers for a fee employment to warrant conviction for illegal recruit
CONDITIONS OF EMPLOYMENT
WORKING CONDITIONS & REST PERIODS
Art 82. COVERAGE
a. ALL employees in all establishments & undertakings whether for profit or
not
b. Such standards apply only if there exists EER-EE relationship
EXCEPTIONS on Conditions of EEnt
i. Government employees EES of govt agencies & govt corps
ii. Managerial employees those whose primary duty consists of the mgt of
the establishment in w/c they are employed or of a dept/subd thereof, and to
other officers/members of the managerial staff
- under the direct supervision of the EER, and assist in the planning,
organizing, staffing, directing controlling, communicating and in making
decisions in attaining the companys set goals & objectives
a. Includes supervisiors (only as regards Art 82) likewise responsible for the
effective & efficient operation of their respective depts
iii. Field personnel non-agricultural employees who regularly perform their
duties away from the principal place of business or branch office of the
employer and whose actual hours of work in the field cannot be determined
w/ reasonable certainty
c. those whose performance of their job/service is not supervised by the ER
or his rep, the workplace being away from the principal office and whose
hours & days of work cannot be determined w reasonable certainty; hence
they are paid specific amount for rendering specific service or performing
specific work.

a. drivers that are required to be at specific places at specific times are

not field personnel
b. in case of fishermen although performing non-agri work away from
the office, the fact that they have no choice but to remain on board the
vessel, they are still under constant supervision by the ER thru the vessels
patron/master
iv. Employers family members who are dependent on him for support
v. Domestic helpers
house personnel hired by a ranking company official, a foreigner, but
paid for by the company itself, to maintain a staff house provided for the
officialregular EE
vi. Persons in the personal service of another
vii. Workers paid by result per piece/per task
- laborer/EE w/ no fixed salary, wag, or renumeration but receiving a
compensation from his ER an uncertain & variable amount depending upon
the work done or the result of said work (piece work), irrespective of the time
employed
EER-EE Relationship is not dependent upon the agreement of the parties.
The characterization by law prevails over that in the contract. the
existence of an EER-EE relshp is not a matter of stipulation but a question of
law
d. depends on the facts of each case
Core/Non-core Jobs
e. EER-EE relship may comver core/non-core activities of the EERs business.
f. The kind of work is not the definitive test of whether the worker is an EE or
not.
Employer any person, natural or juridical, domestic or foreign, who carries
on in the PH any trade, business, industry, undertaking or activity of any kind
and uses the services of another person who is under his order as regards
employment
Employee any person who performs services for an EER in w/c either or
both mental & physical efforts are used and who receives compensation for
such services, where there is an EER-EE relationship
TESTS OF EENT Relship:
i. Right of Control Test where the person for whim the services are
performed reserves a right to control not only the end to be achieved but
also the means to be sued in reaching such end.

Plus: the courts added the existing economic conditions prevailing bet the
parties (like payrolls) in determining the existence of EER-EE Relship.
ELEMENTS OF EE-EER RELSHIP (Four-fold Test)
i. the selection and engagement of the EE;
ii. the payment of wages;
iii. the power of dismissal;
iv. the employers power to control the EE w/ respect to the means &
methods by w/c the work is to be accomplished (most important)
Independent contractors can employ others to work & accomplish
contemplated result w/o consent of contractee, while EE cannot substitute
another in his place w/o consent of his EER.
2. The Economic Dependence Test observes the need to consider the
existing conditions bet the parties
Best approach: Apply the two-tiered test involving:
1. the putative employers power to control the EE w/ respect to the means
and methods by w/c the work is to be accomplished; and
2. the underlying economic realities of the activity or relationship
a. the extent to w/c the services performed are an integral part of the
employers business;
b. to the extent of the workers investment in equipment and facilities;
c. the nature and degree of control exercised by the employer;
d. the workers opportunity for profit and loss;
e. the amount of initiative, skill, judgment or foresight required for the
success of the claimed independent enterprise;
f. the permanency and duration of the relationship between the worker and
the employer; and
g. the degree of dependency of the worker upon the employer for his
continued employment in that line of business
Standard of economic dependence whether the worker is dependent on the
alleged employer for his continued employment in that line of business
Evidence of employment
i. id card
ii. vouchers of salaries
iii. sss registration
iv. memorandum
Absence of EEs name in payroll does not mean he is not an EE
Mode of Compensation not a test of EEnt status; pakyaw basis does not
mean workers are independent contractors
Independent contractors- generally rely on their own resources

* Unions and unregistered associations can be EERs of the persons who work
for them
GR: An employee is not a contractor; a contractor is not an employee.
GR: While EE-ER relationship exists bet a job contractor and the workers that
he hires, no such relationship exists bet those workers and the job
contractee, the contractors client.
Labor-only contractor serve as an agent of the true employer by merely
recruiting & supplying people (prohibited).
Conditions of Employment laid down by law or by contract concluded
individually w/ an EE or collectively w/ a group
g. may also arise from established practice in the enterprise
2 Kinds of Employment Conditions
a. Statutory provided for by law
b. Voluntary initiated by the ER unilaterally or by contractual stipulation
An employer is free to regulate, accdg to his own discretion & judgment, all
aspects of EENT, including hiring, work assignments, working methods, time,
place and manner of work, tools to be used, processes to be followed,
supervision of workers, working regulations, transfer of EES, work
supervision, lay-off of workers and discipline, dismissal and recall of workers.
h. Employers have the right to exercise management prerogatives to
strengthen his business competitiveness unlawful/ unjust/unfair; so long
as they are exercised in GF for the advancement of his interest and not for
the purpose of defeating/circumventing the Rs of the EES
a. May devise & implement new salary scales applicable only to future EES.
(salary distortion)
Members/Officers of the Managerial Staff: Duties & Responsibilities
1. Their primary duty consists of the performance of work directly related to
mgt policies of their ER;
2. They customarily & regularly exercise discretion and independent
judgment;
3. They regularly & directly assist the managerial EE whose primary duty
consists of the mgt of a dept of the establishment in w/c they are employed;
4. They execute, under gen supervision, work along specialized/technical
lines requiring special training, experience or knowledge;
5. They execute, under gen supervision, special assignments and tasks; and
they do not devote more than 20% of their hours worked in a work-week to
activities w/c are not directly & clearly related to the performance of their
work
Art 83. NORMAL HOURS OF WORK

i. shall not exceed 8 hrs/day

Purpose of 8-hr Labor law not only to safeguard the health & welfare of the
laborer/EE, but in a way to minimize unemployment by forcing ERs, in cases
where more than 8-hr operation is necessary, to utilize different shifts to
laborers/EEs working only for 8 hrs each
Part-time Work not prohibited. (What the law regulates is work exceeding
8hrs)
GR: Wage & benefits of a part-timer are in proportion to the number of hrs
worked.
Work hrs of Health Personnel
Health personnel shall include, but not limited to, resident physicians,
nurses, nutritionists, dieticians, pharmacists, social workers, lab technicians,
paramedics, psychologists, midwives, attendants, and all other hospital &
clinic personnel like medical secretaries
Resident physicians customary practice to work for 24 hrs a day violates
the limitations in Art 83. when they are under training program/agreement
bet the residents and the hospital accredited by the govt
Hospital EEs are entitled to a full weekly salary w/ apid 2 days off if they
have completed the 40hr/5day workweek (7days pay for 5 days work)
Health personnel in Govt service covered by RA 7305
12-hr Workshift with Overtime
- through a contract freely entered into, workshift may exceed 8hrs w/
corresponding overtime pay.
Art 84. HOURS WORKED shall include:
1. all time during w/c an EE is required to be on duty or to be at a prescribed
workplace, and
2. all time during w/c an EE is suffered or permitted to work
Rest periods of short duration during work hrs shall be counted as hours
worked
Principles in Determining Hours Wrked
1. All hrs are hrs worked w/c the EE is required to give to his ER, regardless of
WON such hrs are spent in productive labor or involve physical/mental
exertion;
2. An EE need not leave the premises of the workplace in order that his rest
period shall not be counted, it being enough that he stops working, may rest
completely and may leave his workplace, to go elsewhere, whether w/in or
outside the premises of his workplace;
3. If the work performed was necessary, or it benefited the ER, or the EE
could not abandon his work at the end of his normal working hrs because he
had no replacement, all time spent for such work shall be considered as hrs
worked, if the work was w/in the knowledge of his ER/immediate supervisor;

4. The time during w/c an EE is inactive by reason of interruptions in his work

beyond his control shall be considered time either if the imminence of the
resumption of work requires the EEs presence at the place of work or if the
interval is too brief to
be utilized effectively & gainfully in the EEs own interest.
Pre/Postliminary Activities
j. Preliminary (before work) and postliminary (after actual work) activities are
deemed performed during working hrs, where such activities are
controlled/required by the ER and are pursued necessarily & primarily for the
ERs benefit
Waiting Time
k. whether waiting time constitutes working time depends on the
circumstances on each particular case
l. controlling factor is WON time spent in idleness is so spent predominantly
for the ERs benefit or for the EEs
1. Engaged to Wait waiting time spent by EE shall be considered as working
time if waiting is considered an integral part of his work or if the EE is
required/engaged by an ER to wait
2. Waiting to Engage idle time is not work time
Working While Eating
GR: EE must be completely relieved from duty for the purpose of eating
regular meals. The meal time is not compensable if he is completely free
from duties during his meal period even though he remains in the workplace.
EE is not relieved if he is required to perform his duties whether
active/inactive, while eating (ex. Stand-by for emergency work)
Working While Sleeping
GR: Sleeping time may be considered working time if it is subj to serious
interruption or takes place under conditions substantially less desirable than
would be likely to exist at the EEs home.
if there is an opportunity for comparatively uninterrupted sleep under
fairly desirable conditions, event though EE is required to remain on or near
the ERs premises and must hold himself in readiness for a call to action ENT.
m. depends upon the express/implied agreement of the parties, or in
absence of an agreement, upon the nature of the service and its relation to
the working time.
On Call

n. although EE can rest completely and may not be actually at work, if they
are required to be in their place of work before/after the regular working hrs
and w/in the call of their ERs, the time they stay in the place of work sould
not be discounted from their working hrs
o. EE cannot use the time effectively for his own purposes is working while
on call.
p. Not on call: EE is not required to remain on the ERs premises but is
merely required to leave work at his home or w/ company officials where he
may be reached
q. Public health workers On call status refers to a condition when public
health workers are called upon to respond to urgent or immediate need for
health/medical assistance or relief work during emergencies such that he/she
cannot devote the time for his/her own use.
With Cellular phone or Other Contact Device
r. if EE is kept w/in reach through a cell phone, he is NOT on call
Travel Time time spent walking, riding, or traveling to/from place of work
a. Travel from home to work not worktime when EE receives an
emergency call outside his regular working hrs and is required to travel to his
regular place of business or some other worksiteworking time
b. Travel that is all in a days work time spent by an EE in travel as part of
his principal activityhrs worked
c. Travel away from home travel that keeps an EE away from home
overnight worktime when it cuts across the EEs workday
Lectures, Meetings and Training Programs not worktime if:
a. Attendance is outside of the EEs regular working hrs;
b. Attendance is in fact voluntary; and
c. The EE does not perform any productive work during such attendance.
* must meet all criteria
Grievance Meeting time spent in adjusting grievance bet ER & Ee during
the time the EEs are required by the ER to be on the premiseshrs worked
if a bona fide union is involved depends on the CBA or the custom
practice under the CBA
Semestral Break hrs worked by teachers in private schools
WORK HOURS OF SEAMEN
s. they need not leave the boat in order that his rest period not be counted
Requisites for non-counted rest period
a. he ceases to work
b. may rest completely

c. leave or may leave at his will the spot where he actually stays while
working, to go somewhere else, whether w/in or outside the ship
HOURS WORKED: EVIDENCE & DOUBT
GR: When an ER alleges that his EE works less than the normal hrs of ENT as
provided for in law, he bears the burden of proving his allegation w/ clear &
satisfactory evidence
Art 85. MEAL PERIODS
t. must be at least 60minutes time-off for regular meals
GR: not compensable
Exceptions:
1. where the lunch period or mealtime is predominantly spent for the ERs
benefit (considered overtime) ;or
2. where it is less than 60 minutes (but not less than 20minutes) must be
with full pay when:
1. where work is non-manual (does not involve strenuous physical exertion);
2. where the establishment regularly operates not less than 16hrs a day
3. in cases of actual or impending emergencies or there is urgent work to be
performed on machineries, equipment or installations to avoid serious loss
w/c the ER would otherwise suffer;
4. where the work is necessary to perevent serious loss of perishable goods
c. If less than 20 minutes it becomes only a rest period and is thus
considered work time
Note: Meal periods during overtime work is not given to workers performing
OT bcoz OT is usually for a short period
Shortened Meal Break Upon EEs request
u. EEs may request that their meal pd be shortened so that they can leave
work earlier not compensable
Requisites
1. EEs voluntarily agree in writing and waive their OT pay;
2. No diminution in the salary and other fringe benefits of the EEs already
existing;
3. Work is not physically strenuous and they are provided w/ adequate coffee
breaks in the morning & afternoon;
4. Value of benefits is equal to the compensation due them;
5. OT pay will become due and demandable if they are permitted/made to
work beyond 4:30 pm; and
6. The arrangement is of temporary duration.

Note: The 8-hr work period does not include the meal break. EEs may leave
the company premises as long as they return to their posts on time.
Art 86 NIGHT SHIFT DIFFERENTIAL
- at least 10% of his regular wage for each hr of work performed bet 10PM
and 6AM
- given as premium for working at a time for sleep & rest
- in addition to the exceptions in Art 82, NSD is n/a to EEs of retail and
service establishments regularly employing 5 employees and below
- if work done from 10pm-6am is OT work, then the 10% night shift
differential should be based on the OT rate
- not waivable (founded on public policy)
- the receipt of OT pay will not preclude payment of NSD pay
- burden of proof of payment of NSD - ER
Art 87. OVERTIME WORK
Overtime Pay additional compensation for work performed beyond 8hrs
w/in the workers 24-hr workday regardless whether the work covers 2
calendar days
Basis cash wage only, w/o any deduction
Rates
1. OT on a regular work day at least 25% thereof
2. OT on a holiday or rest day at least 30% thereof
* CBA may stipulate higher OT pay rate
Actual Work Days as Divisor
PALEA v PAL (1976) PALEA & PAL Supervisors Assoc (PALSA), commenced
an action v PAL in the CIR praying that the latter be ordered to revise the
method of computing the basic daily & hourly rates of its monthly-salaried
EEs and necessarily to pay them their accrued salary differentials
PALs Formula:
monthly salary x 12/365 days in a yr = Basic daily rate
basic daily rate/8 Basic hourly rate
Proposed Formula:
Monthly salary x 12/actual working days = BDR
BDR/8 = BHR
Paid Unworked days of a monthly-paid EE
- ER may stipulate that EEs monthly salary constitutes payment for all the
days of the month incl rest days & holidays if when converted into its daily
equivalent would still meet minimum wagelegal
How work day is counted

A day the 24-hr period w/c commences from the time the EE regularly
starts to work
- regardless of the day of the week or hr of the day
- any work in excess of the 8hrs w/in the 24-hr pd is considered as OT
regardless of whether the work covers 2 calendar days
- any work in excess of 8 hrs not falling w/in the 24-hr pd is not considered as
OT work
a. Broken Hrs of Work the minimum normal working hrs need not be
continuous to constitute as the legal working day of 8 hrs as long as the 8
hrs is w/in a work day
b. Work in Different Shifts in a Work day work in excess of 8hrs w/in a work
day is considered as OT regardless of whether this is performed in a work
shift other than at w/c the EE regularly works
EEs shift is 10pm-6am. He is asked to take a shift of another EE who is
absent from 2pm-10pm (his regular work day would be from 10pm-10pm)
the 2nd shift is considered OT because it is still w/in his work day
GR: An express instruction from the ER to the EE to render OT work is not
required for the EE to be entitled to OT pay. It is sufficient that the EE is
permitted or suffered to work. Neither is an express approval by a supervisor
needed.
: On rest days & holidays, written authority after office hrs is required for
the EE to be entitled to compensation
A verbal instruction to render OT work prevails over a memorandum
prohibiting such work.
OT claim is not justified for days where no work was required and no work
could be done (i.e. brownout, machine repair, lack of rawmats)
OT Work of Seamen whether or not the sailors are entitled to OT pay is not
whether they were on board and cannot leave ship beyond the regular 8
working hrs a day, but whether they actually rendered service in excess of 8
hrs
OT work must be proven by factual & legal basis
Action to Recover Compensation
- estoppel & laches cannot be invoked against EEs bcoz that would be
contrary to the spirit of the 8-hr Labor Law, under w/c the laborers cannot
waive their R to extra compensation
- OT pay in arrears retroacts to the date when services were actually
rendered

GR: Waiver or quitclaim not a waiver of OT pay. Any stipulation in the

contract that the laborer shall work beyond the regular 8 hrs w/o addtl
compensation for the extra hrs is contrary to law and null and void
Waiver of OT Pay
GR: OT pay cannot be waived expressly or impliedly. Any contrary stipulation
is null and void.
Exeptions
1. When the waiver is made in consideration of benefits & privileges w/c may
be more than what will accrue to them in OT pay; and
2. Compressed workweek (CWW) the number of work days is reduced but
the number of work hrs in a day is increased to more than 8, but no OT pay
may be claimed.
Requisites of Compressed Workweek to be valid:
1. The scheme is expressly and voluntarily supported by majority of the EEs
affected;
2. In firms using substances, or operating in conditions that are hazardous to
health, a certification is needed from an accredited safety org or the firms
safety committee that work beyond 8hrs is w/in the limits/levels of exposure
set by DOLEs occupational safety & health standards;
3. The DOLE Regional Office is notified.
Effects of a Compressed Workweek
1. Unless there is a ore favorable practice existing in the firm, work beyond
8hrs will not be compensable by OT premium, provided the
total number of hrs worked per day shall not exceed 12hrs. (Work performed
beyond 12hrs a day or 48hrs a weekOT)
2. EEs under a CWW scheme are entitled to meal periods of at least 60
minutes. The R of EEs to restday, holiday pay, rest day pay or leave in
accdance w/ law/CBA/company practice shall not be impaired.
3. Adoption of the CW scheme shall in no case result in diminution of existing
benefits. Reversion to the normal 8-hr work day shall not constitute
diminution of benefits. (Reversion is considered a legitimate exercise of mgt
prerogative, provided that the ER shall give the EEs prior notice of such
reversion w/in a reasonable period of time.
* EE may validly waive the R to OT under a CWW program, provided he did
so voluntarily, w/ full understanding of what he was doing and in
consideration for the quit claim is credible & reasonable.
Note: EEs promoted from rank-and-file to supervisory lose their OT pay and
other benefits under Art 82-96
Illustrations of OT Computations

1. Regular Workdays
Reg Basic Wage + 25% thereof
2. Legal or Regular Holidays
Holiday Wage Rate (200%) + 30% thereof
3. Rest Days or Special Holidays
Rest day/Special Holiday wage rate (130%) + 30% thereof
4. Scheduled Rest Day w/c is also a Special Holiday
Rest day & special holiday wage rate (150%) + 30% thereof
5. Scheduled rest day w/c is also a legal or regular holiday
Rest day & legal holiday wage rate (260%) + 30% thereof
6. Double holiday
Double holiday wage rate (400%) + 30% thereof
EE will receive 200% of his regular daily wage when both regular holidays
fall on the same day and he does not work (Law provides that he shall get his
regular daily wage of each regular holiday)
100% of Araw ng Kagitingan, 100% Good Friday. If he works on that day,
he gets 400%
OT pay integrated in Basic Salary (composite/package pay/all-inclusive
salary) not illegal nor unusual for executives or managers
But for non-managerial EEs, there must be:
1. A clear written agreement
2. Agreed legal wage rate and OT pay computed separately are equal or
higher than the separate amounts legally due
FLEXIBLE WORK ARRANGEMENTS
- alternative work arrangements or schedules other than the traditional or
standard work hrs, workdays or workweek. ERs may adopt them after due
consultation w/ EEs, taking into acct the adverse consequence of the
situation on the performance and financial condition of the company.
- Its effectivity and implementation shall be temporary.
- Should be threshed out by the ER and EE
- DOLE Reg Ofc must be notified prior to implementation
- In addition to CWW, the FWAs include:
1. Reduction of workdays where normal workdays per week are reduced
but should not last for more than 6 months
2. Rotation of workers where the EEs are rotated/alternately provided work
w/in the workweek

3. Forced leave EEs are required to go on leave for several days or weeks,
utilizing their leave credits if there are any
4. Broken-time schedule the work schedule is not continuous but the
number of hrs w/in the day or week is not reduced
5. Flexi-holiday schedule Ees agree to avail themselves of the holidays at
some other days, provided that there is no diminution of existing benefits as
a result of such arrangement
Art 88. UNDERTIME NOT OFFSET BY OVERTIME
- Whether on the same day or any other day is prohibited by law
- Permission given to the EE to go on leave o some other day of the week
shall not exempt ER from paying the addtl compensation
Reason: EEs hourly rate is not equivalent to OT rate
Proper method: Deduct the UT from the accrued leave, if any
Art 89. EMERGENCY OT WORK
GR: EEs cannot be compelled to render OT work against their will
Exceptions:
1. In times of war or any national or local emergency declared by
Congress/Chief Exec;
2. To prevent loss or damage to life or property due to emergencies and force
majeure;
3. When there is urgent work needed on machines & equipment;
4. When work is necessary to preserve perishable goods;
5. To prevent serious obstruction or prejudice to the business or operations of
the ER; and
6. When it is necessary to avail of favorable weather or environmental
conditions where performance or quality f work is dependent thereon.
Art 90. COMPUTATION OF ADDTL COMPENSATION
cash wage excludes noncash value of facilities
- if only cash wage is the basis of OT rate, it is unfair to the worker because
as defined in Art 97, wage includes the value of facilities, hence the value
of facilities should not be excluded when computing OT pay
- OT rate should be based on the regular wage (include the value of
facilities)
Ch. 2 WEEKLY REST PERIODS
Art 91. RIGHT TO WEEKLY REST DAY
Duration: at least 24 consecutive hrs after every 6 consecutive normal work
days

- all establishments & enterprises may operate or open for business on

Sundays & holidays provided that the EEs are given the weekly rest day &
the benefits provided under the law
Who Determines: The ER determines and schedules the weekly rest period
subj to the ff:
1. CBA;
2. Rules & regulations issued by the Sec of Labor; and
3. EEs preference based on religious grounds. (When such preference will
prejudice the business of the ER, and no other remedial measures are
available, the weekly rest pd may be scheduled to meed the EEs choice for
at least 2 days a month
Art 92. WHEN THE ER MAY REQUIRE WORK ON A REST DAY
GR: The ER may not require the EEs to work on a rest day
: Exceptions
1. In cases of urgent work to be performed on the machinery, equipment or
installation;
2. To prevent loss or damage to perishable goods;
3. In case of actual/impending emergencies caused by force majeure to
prevent loss of life and property, or imminent danger to public safety;
4. Where the nature of work requires continuous operations and the
stoppage of work may result in irreparable injury/loss to the ER;
5. In the event of abnormal pressure of work due to special circumstances,
where the ER cannot ordinarily be expected to resort to other measures; and
6. Under the circumstances analogous to the foregoing as determined by the
Sec of Labor.
Note: The failure to work during an EEs rest day does not justify disciplinary
sanction of outright dismissal, more so when justifiable grounds exist for the
said failure.
Note: When an EE volunteers to work on his rest day under other
circumstances, he may be allowed to do so, provided he expresses such
desire in writing and he is paid the addtl compensation for working on his
rest day
Art 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK
Premium pay or Differential compensation addtl compensation for work
rendered by the EE on days when normally he should not be working such as
special holidays and weekly rest days
Note: This article does not prohibit a CBA stipulation for higher benefits
Formulas to Compute Wages on Holidays
1. For REGULAR HOLIDAYS

a. If it is an EEs regular workday

i. If unworked 100%
ii. If worked
1. 1st 8hrs 200%
2. excess of 8hrs Plus 30% of hourly rate of said day
b. if it is an EEs rest day
i. if unworked 100%
ii. if worked
1. 1st 8hrs plus 30% of 200%
2. excess of 8 hrs plus 30% of hourly rate of said day
2. For declared SPECIAL DAYS such as Special Non-Working Day, Special
Public Holiday, Special National Holiday and nationwide special days
a. If unworked no pay, unless there is a favorable company policy, practice
or CBA granting payment of wages on special days even if unworked
b. If worked
i. 1st 8hrs plus 30% of the daily rate of 100%
ii. excess of 8hrs plus 30% of hourly rate on said day
c. Falling on the EEs rest day and if worked
i. 1st 8hrs plus 50% of the daily rate of 100%
ii. excess of 8hrs plus 30% of hourly rate on said day
3. For those declared as SPECIAL WORKING HOLIDAY
- for work performed an EE is entitled only to his basic rate
List of Special Days
Proc. 459
A. Regular Holidays
1. New Years Day
2. Maundy Thursday
3. Good Friday
4. Araw ng Kagitingan
5. Labor Day
6. Independence Day
7. National Heroes Day
8. Bonifacio Day
9. Christmas Day
10. Rizal Day
B. Special (Non-working)Days
1. Black Saturday
2. Ninoy Aquino Day

3.
4.
5.
6.

All Saints Day

Nov 2
Dec 24
Last Day of the Year

C. Special Holiday (for all schools)

EDSA Revolution Anniversary
D. Local Holiday
Those declared by
law or ordinance
Regular Holiday

Special Day

Compensable
even if unworked
subj to certain
conditions

Not compensable
if unworked

Limited to the list

enumeration

Not exclusive
since a law or
ordinance may
provide for other
special holidays

Rate is 200% of
the regular rate if
worked

Rate is 130% of
the regular wage
if worked

life and property, or imminent danger to public safety;

4. Where the nature of work requires continuous operations and the
stoppage of work may result in irreparable injury/loss to the ER;
5. In the event of abnormal pressure of work due to special circumstances,
where the ER cannot ordinarily be expected to resort to other measures; and
6. Under the circumstances analogous to the foregoing as determined by the
Sec of Labor.
Note: The failure to work during an EEs rest day does not justify disciplinary
sanction of outright dismissal, more so when justifiable grounds exist for the
said failure.
Note: When an EE volunteers to work on his rest day under other
circumstances, he may be allowed to do so, provided he expresses such
desire in writing and he is paid the addtl compensation for working on his
rest day
Art 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK

Premium pay or Differential compensation addtl compensation for work

rendered by the EE on days when normally he should not be working such as
special holidays and weekly rest days
Note: This article does not prohibit a CBA stipulation for higher benefits
Formulas to Compute Wages on Holidays
1. For REGULAR HOLIDAYS
a. If it is an EEs regular workday
i. If unworked 100%
ii. If worked
1. 1st 8hrs 200%
2. excess of 8hrs Plus 30% of hourly rate of said day
b. if it is an EEs rest day
i. if unworked 100%
ii. if worked
1. 1st 8hrs plus 30% of 200%
2. excess of 8 hrs plus 30% of hourly rate of said day