A.

The Fourfold Test (For employer-employee relationship)

. (1) Selection and engagement of employee
. (2) Payment of Wages
. (3) Power of Dismissal
. (4) Power to Control the Employee's conduct
***Needed to find out if

2. Legitimate Contracting or Subcontracting under DO 18-A

- There is this if all of the following circumstances concur:(a) The contractor must be
registered in accordance with DO 18-A and carried on a distinct and independent
business, and undertakes to perform the work, job or service on his own responsibility
according to his own manner and method, and free from the control and direction of
his principal in all matters connected with the performance of the work, except as to the
results of the work(b) The contractor has substantial capital and/or investment(c) The
Service Agreement ensures compliance with all the rights and benefits of the
contractors employees under Labor Laws

Legitimate VS Non-legitimate
- Legitimate job contractor = Provides SERVICES= Carries on independent business =
Has substantial capital or investment= Do not perform activities directly related to main
business of the principal
- Labor-only contractor = Provides MANPOWER ONLY

1. Extent of Liability of Principals of Job Contractors and Labor-Only Contractors

- For job contractors, principal considered only as an indirect employer= Principal is
only liable to pay WAGES ONLY if contractor does not pay employees wages.
- For labor-only contractors, the principal is considered as the direct employer of the
contractual employees= The Employer and contractor are solidarily liable for wages,
benefits and other rights of the employees

. Rights of Contractors Employees and regular employees

(1) Safe and healthful working conditions
(2) Labor standards, such as, but not limited to service incentive leave, rest day, overtime
pay, holiday pay, 13th month pay, and separation pay
(3) Retirement Benefits under SSS or retirement plans of the contractor, if there is any
(4) Social security and welfare benefits
(5) Self-organization, collective bargaining and peaceful concerted activities
(6) Security of tenure

I. Regular Employees
- 2 kinds of regular employees:(1) Those engaged to perform activities necessary or
desirable in usual business of employer, except where employment is fixed for a specific
term or project or is seasonal in nature(2) Those casual employees who have rendered
AT LEAST 1 YEAR OF SERVICE, whether continuous or broken, with respect to
activity for which they are employed.
***Important to know because rights above. If not a Regular Employee, may not be assured
of the rights above.
Fixed term employee
A. Standard in Determining Fixed-Period or Term Employment
- It is the day certain agreed upon by the parties for commencement and termination of
their employment relationship
- A Day Certain = understood as that which must necessarily come, although it may
not be known when
= Like a teacher who is engaged to teach until the end of the sem where no fixed date
to end.

B. When a Fixed-Period or Term Employee Acquires the status of a Regular

Employee
- Both the employer and employee have a right to freely stipulate on the duration of
the engagement of the employee
- However when agreement is entered into by parties fixes a period or term to
circumvent the security of tenure of the employee, the period or term SHOULD be
STRUCK DOWN or disregarded as contrary to public policy, morals and law.
- Example: Employees that are contracted to do 5 months of service. After the 5 months,
they are terminated and a new set of employees who WILL DO THE SAME ACTIVITY as
those who were terminated will also be contracted for 5 months.
****THIS IS CIRCUMVENTING SECURITY OF TENURE > TO PREVENT REGULARIZATION (1
year of service)

C. When Fixed Contracts of Employment are Not in Circumvention of the Security

of Tenure
- 2 Criteria:
(1) The fixed period of employment was knowingly agreed upon by the parties,
without any force, duress, or improper pressure being brought to bear upon the
employee and absent any other circumstances vitiating his consent
(2) It satisfactorily appears that employer and employee dealt with each other on
more or less equal terms, with no moral dominance whatever being exercised by
either party

13th Month Pay

- Required to give to ALL Rank-and-file employees who have rendered AT LEAST 1 month of
service in 1 calendar year, whether continuous or broken.
- Equal to 1/12 of total salary in one calendar year

Title I. Working conditions and Rest Periods (art 82-96) refers to the following employment
benefits
. (1) Normal hours of work
. (2) Meal periods
. (3) Rest periods
. (4) Night shift differential
. (5) Overtime pay
. (6) Weekly rest day
. (7) Holiday pay
 . (8) Service incentive leave
. (9) Service charges

A. Excluded employees from benefits above

. (1) Government employees
. (2) Managerial employees
. (3) Officers and members of the managerial staff
. (4) Field personnel
. (5) Employer's family members
. (6) Domestic helpers and persons in personal service to another
. (7) Workers paid by results

1. Additional Excluded Employees for Night-Shift Differential- Employees of retail and

service establishments regularly employing NOT MORE THAN 5
2. Additional Excluded Employees for Holiday Pay- Employees of retail AND service
establishments regularly employing LESS THAN 10 workers
are NOT ENTITLED to regular holiday pay
3. Additional Excluded Employees for Service Incentive Leave
. (1) Employees already enjoying the benefit of 5 days service incentive leave
with pay
. (2) Employees enjoying vacation leave with pay of at least 5 days
. (3) Employees of retail or service establishments regularly employing LESS than 10
workers
. (4) Employees in establishment exempted from granting this by Secretary of Labor
and Employment after considering the viability or financial constitution of the
establishment

XI. Service Charges

A. Distribution of Service Charges
- 85% to employees, 15% to management
- Employees distributed equally
- Management has their own prerogative, to use for business or to distribute
- Service charge SHALL BE DISTRIBUTED and PAID to employees NOT LESS THAN ONCE
EVERY 2 WEEKS or twice a month at intervals not exceeding 16 days