LABOR STANDARDS

Atty. Peter Joey B. Usita

SAMPLEX AND REVALIDA COMPILATION them to realize their full potential in the service of the
nation.
OBJECTIVE QUESTIONS
 The Importance of the determination of the existence of
BOOK I an Employer – Employee Relationship

 Provisions of the 1987 Constitution governing Labor and

- It is important to determine E-E Relationship because it
Capital will be the controlling factor as to the jurisdiction and
as to what laws will apply.
ARTICLE II – Declaration of State Principles and
Policies  The social justice clause

Section 18 – The State affirms labor as a primary social - Social Justice is neither communism, nor despotism,
economic force. It shall protect the rights of workers and not atomism, nor anarchy, but the humanization of laws
promote their welfare. and the equalization of social and economic forces by
the State so that justice in its rational and objectively
ARTICLE XII – National Economy and Patrimony secular conception may at least be approximated.

Section 12 – The State shall promote the preferential use of - It means the promotion of the welfare of all people, the
Filipino labor, domestic materials and locally produced adoption by the government of measures calculated to
goods, and adopt measures that help make them ensure economic stability of all the component
competitive. elements of society

 The so-called protection of labor clause

ARTICLE XIII – Social Justice and Human Rights
- Section 3, Article XIII of the 1987 Constitution
Section 3 – The State shall afford full protection to labor,
provides that the State shall afford full protection to
local and overseas, organized and unorganized, and promote
labor, local and overseas, organized and unorganized,
full employment and equality of employment opportunities
and promote full employment and equality of
for all.
employment opportunities in favor of all.
It shall guarantee the rights of all workers to self-
 The construction in favor of labor clause
organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in
- It is construed in favor of labor if there is a doubt as to
accordance with law.
the meaning of the legal and contractual provision. If
the provision is clear and unambiguous, it must be
They shall be entitled to security of tenure, humane
applied in accordance with its express terms.
conditions of work, and a living wage. They shall also
participate in policy and decision-making process affecting
- In case of doubt, all labor legislation and all labor
their rights and benefits as may be provided by law.
contracts shall be construed in favor of the safety and
decent living for the laborer.
The State shall promote the principle of shared
responsibility between workers and employers and the  Recruitment activities and what are the prohibited acts?
preferential use of voluntary modes in settling disputes,
including conciliation, and shall enforce their mutual - It is an act of canvassing, enlisting, transporting,
compliance therewith to foster industrial peace. contracting, hiring, utilizing, or procuring workers, and
includes contract services, referrals, advertising or
The State shall regulate the relations between workers and promising for employment, locally or abroad, whether
employers, recognizing the right of labor to its just share in for profit or not, Provided, that any person or entity
the fruits of production and the right of enterprises to which, in any manner, offers or promises for a fee
reasonable returns on investments, and to expansion and employment to two or more persons.
growth.
PROHIBITED ACTS
Section 13 – The State shall establish a special agency for
disabled persons for their rehabilitation, self-development, ART. 34. Prohibited practices. - It shall be unlawful for
and self-reliance, and their integration into the mainstream any individual, entity, licensee, or holder of authority:
of society.
a. To charge or accept, directly or indirectly, any
Section 14 – The State shall protect working women by amount greater than that specified in the schedule
providing safe and healthful working conditions, taking into of allowable fees prescribed by the Secretary of
account their maternal functions, and such facilities and Labor, or to make a worker pay any amount greater
opportunities that will enhance their welfare and enable than that actually received by him as a loan or
advance; (Illegal Exaction)

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
b. To furnish or publish any false notice or principal when, after the termination of the original
information or document in relation to recruitment employment contract, the foreign principal directly
or employment; (False Information) negotiated with Divina and entered into a new and
c. To give any false notice, testimony, information or separate employment contract.
document or commit any act of misrepresentation
for the purpose of securing a license or authority  When is illegal recruitment considered economic
under this Code. (False Statement) sabotage?
d. To induce or attempt to induce a worker already
employed to quit his employment in order to offer LARGE SCALE Illegal recruitment by 1 person
him to another unless the transfer is designed to ILLEGAL or with another person against 3
liberate the worker from oppressive terms and RECRUITMENT or more persons individually or
conditions of employment; (Pirating) as a group.
e. To influence or to attempt to influence any person ILLEGAL Illegal recruitment committed by
or entity not to employ any worker who has not RECRUITMENT a syndicate or a group of 3 or
applied for employment through his agency; BY A SYNDICATE more persons conspiring and
(Influencing not to Employ) confederating with one another
f. To engage in the recruitment or placement of in carrying out the act
workers in jobs harmful to public health or circumscribed by the law.
morality or to the dignity of the Republic of the
Philippines (Harmful Jobs)  Who are disqualified from engaging in recruitment
g. To obstruct or attempt to obstruct inspection by the activities?
Secretary of Labor or by his duly authorized
representatives; (Obstruct Inspection) A. For Overseas Employment whether for Profit or
h. To fail to file reports on the status of employment, Not:
placement vacancies, remittance of foreign
exchange earnings, separation from jobs, a. Travel agencies and Sales agencies of airlines;
departures and such other matters or information as b. Officers or members of the board of any
may be required by the Secretary of Labor. corporation or members in a partnership engaged in
(Failure to Comply with Rules and Regulation) the business of a travel agency;
i. To substitute or alter employment contracts c. Corporations and Partnerships, when any of its
approved and verified by the Department of Labor officers, members of the board or partners, is also
from the time of actual signing thereof by the an officer, member of the board or partner of a
parties up to and including the periods of corporation or partnership engaged in the business
expiration of the same without the approval of the of a travel agency;
Secretary of Labor; (Alteration of Contracts) d. Individuals, partners, officers or directors of an
j. To become an officer or member of the Board of insurance company who make, propose or provide
any corporation engaged in travel agency or to be an insurance contract under the compulsory
engaged directly or indirectly in the management insurance coverage for agency-hired OFWs;
of a travel agency; and (Travel Agency Officers e. Sole proprietors, partners, or officers and members
Recruiting) of the board with derogatory record, such as, but
k. To withhold or deny travel documents from not limited to the following:
applicant workers before departure for monetary or i. Those convicted, or against whom probable
financial considerations other than those authorized cause or prima facie finding of guilt is
under this Code and its implementing rules and determined by a competent authority, for
regulations. (Withholding Travel Documents) illegal recruitment, or for other offenses
committed in the course of, related to, or
 Theory of Imputed Knowledge resulting from illegal recruitment, or for
crimes involving moral turpitude;
- Doctrine of imputed knowledge attributes the ii. Those agencies whose license have been
knowledge of the agent to the principal. revoked for violation of R.A. 8042, as
amended, P.D. 442, as amended, and R.A.
- In the Sunace case, the theory of imputed knowledge 9208, as amened, and their IRRs;
ascribes the knowledge of the agent, Sunace, to the iii. Those agencies whose licenses have been
principal (employer) not the other way around. The cancelled, or those who, pursuant to the Order
knowledge of the principal-foreign employer cannot, of the Administrator, were included in the list
therefore, be imputed to its agent, Sunace. of persons with derogatory record for violation
of recruitment laws and regulations.
- There being no substantial proof that Sunace knew of f. Any official or employee of the DOLE, POEA,
and consented to be bound under the 2-year OWWA, DFA, DOJ, DOH, BI, IC, NLRC,
employment contract extension, it cannot be said to be TESDA, CFO, NBI, PNP, CAAP, international
privy thereto. Furthermore, there was an implied airport authorities, and other government agencies
revocation of its agency relationship with its foreign directly involved in the implementation of R.A.

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
8042, as amended, and/or any of his/her relatives
within the 4th civil degree of consanguinity or
affinity.

B. For Local Employment:

BOOK II
a. Those who are convicted of Illegal Recruitment,
Trafficking in Persons, Anti-child Labor violations,  Learnership vs. Apprenticeship
or Crimes involving moral turpitude;
b. Those against whom probably cause or prima facie LEARNERS APPRENTICE
finding of guilt of illegal recruitment or other Persons hired as trainees in A practical training on the
related cases exists particularly to owners or semi-skilled and other job supplemented by
directors of agencies who have committed illegal industrial occupations which related theoretical
recruitment or other related cases; are non-apprenticeable and instruction, for a highly
c. Those whose licenses have been previously which may be learned through skilled or technical
revoked or cancelled by the DOLE under Sec. 54 practical training on the job in occupation for a period of
of these rules; a relatively short period of not less than 3 months but
d. Cooperatives whether registered or not under the time which shall not exceed 3 not more than 6 months
Cooperative Act of the Philippines; months.
e. Law enforcers and any official and employee of the Requisites
DOLE; 1. Qualifications for 1. No experienced
f. Sole proprietors of duly licensed agencies are apprenticeship are met: workers are available
prohibited from securing another license to engage a. At least 15 years of age, 2. The employment of
in recruitment and placement; provided that if below 16 learners being necessary to
g. Sole proprietors, partnerships or corporations years, he shall not be eligible prevent curtailment of
licensed to engage in private recruitment and for hazardous occupation employment opportunities
placement for local employment are prohibited b. Physically fit for the 3. The employment will
from engaging in job contracting or sub- occupation in which he neither create unfair
contracting activities. (Sec. 5, D.O. 141-14). desires to be trained competition in terms of
2. Apprentice earns not less labor costs not impair or
 Simple Illegal Recruitment vs Large Scale than 75% of the prescribed lower working standards
minimum salary
SIMPLE LARGE SCALE 3. Apprenticeship
1. The offender has no 1. The offender agreement duly executed and
valid license or undertakes any signed
authority required by activity within the 4. Apprenticeship program
law to lawfully engage meaning of approved by TESDA
in recruitment and “recruitment and 5. Period of apprenticeship
placement of workers; placement” defined shall not exceed 6 months
and under Art. 13(b) or As to Occupation
2. The offender any prohibited practice Semi-skilled Highly technical approved
undertakes any enumerated in Arts. 34 by TESDA
activity within the and 38 of the Labor As to theoretical instruction
meaning of Code or R.A. 8042, as Optional Mandatory
“recruitment and amended, by R.A. As to competency-based system
placement” defined 10022, whenever
Required Not required
under Art. 13(b) or applicable; and
implementation based on
any prohibited practice 2. The offender commits
TESDA – approved system
enumerated in Arts. 34 the same against 3 or
Training Period
and 38 of the Labor more persons,
Shall not exceed 3 months Exceeds 3 months
Code or R.A. 8042, as individually or as a
amended, by R.A. group. Not an apprentice Conceptually, also a
learner
10022, whenever
applicable. Employer is committed to No such commitment in
hire the learner trainee as an apprenticeship
employee after the training
period

 Regular v. Casual Employment

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
REGULAR CASUAL - The 30-minute group conversation cannot be
The employee has been The employee is not a considered as waiting time since they are not subject to
engaged to perform regular employee and the absolute control of the company during this period.
activities which are usually engaged to perform
necessary or desirable in activities which are not
the usual business or trade usually necessary or  Sleeping time by utility men while waiting for the arrival
of the employer (Nitto desirable in the usual of the delivery of trucks with cargoes to be unloaded.
Enterprises v. NLRC, G.R. business or trade of the
No. 114337, September 29, employer. (Nitto - The general rule is that such arrangements will be
1995). Enterprises v. NLRC, G.R. dependent upon the express or implied agreement of the
No. 114337, September 29, parties. But in the absence of such agreement, it will be
1995). dependent upon the nature of the service and its relation
to the service time. If the sleeping time is subject to
 Fixed Term Employment serious interruption or takes place under conditions
substantially less desirable that would be likely to exist
- The employment has been fixed for a specific project or in the employee’s home, it shall be compensable.
However, if there is an opportunity for comparatively
undertaking the completion or termination of which has
uninterrupted sleep under fairly desirable conditions,
been determined at the time of the engagement of the such is not compensable.
employee (Nitto Enterprises v. NLRC, G.R. No.
114337, September 29, 1995). - Sleeping time is compensable working time if the
nature of the employee’s work allows sleeping without
BOOK III interrupting or prejudicing the performance of his work.
Therefore, this case falls under compensable working
 A fair day’s wage for a fair day’s labor (No work, No pay time.
Principle)
 Time spent by union in the bargaining table with
- If there is no work performed by the employee, there management.
can be no wage or pay unless the laborer was able,
willing, and ready to work but was illegally locked out, - Generally, it is not compensable, except if:
suspended or dismissed or otherwise illegally prevented a. There is an agreement for compensability in the
from working. (Aklan Electric Cooperative v. NLRC, parties’ ground rules;
G.R. No. 121439, January 25, 2000). b. There is an established practice or policy allowing
compensability;
 No work, no pay - Exceptions. c. When it is done during regular work hours with the
agreement of the employer.
1. Regular Holidays
2. Semestral Break for Teachers  Attendance in lectures, conferences, meetings and training
3. Meal Periods programs
4. When Engaged to Wait
5. Compensable Labor Relations Activities - It shall not be considered as working time if:
6. Required Lectures, Meetings, Trainings, Programs a. Attendance is outside of the employee’s regular
7. Shortened Meal Period working hours
8. Whenever the laborer was able, willing, and ready to b. Attendance is in fact voluntary;
work but was illegally locked out, suspended or c. Employees do not perform any productive work
dismissed or otherwise illegally prevented from during such attendance.
working. (Aklan Electric Cooperative v. NLRC, G.R.
No. 121439, January 25, 2000).  Preliminary and Postliminary activities

 Determine whether or not the following situations are - Preliminary and postliminary activities shall be
considered as hours worked. Why? compensable when:
a. Controlled on required by the employer;
 Time spent by a driver waiting for his boss while b. Are pursued necessarily and primarily for the
attending a conference employer’s benefit.

- If the driver is being required by his boss to wait and  Shorter meal periods
remain on call in the premises, such is considered to be
waiting time and is thus compensable. - The employee may request for a shorter meal break so
that he may leave work earlier than the previously
 Time spent for a group conversation during the first 30 established schedule.
minutes of brownout
 Time spent by a clerk-secretary in serving merienda to his
boss’s visitors

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
rendered or to be rendered and includes the fair and
- Yes, it is still considered as hours worked for the reason reasonable value, as determined by the Secretary of
that all hours are hours worked which the employee is Labor, of board, lodging, or other facilities customarily
required to give to his employer. furnished by the employer to the employee (Art. 97,
LABOR CODE).
 Attendance in seminars as one of the factors of promotion-
compensable? Prohibitions Regarding Wages

- No, lectures, meetings, trainings, and programs are not 1. To interfere with the employee’s disposal of his wages;
compensable if the following conditions are met: 2. To force, compel, or oblige employees to purchase
a. Attendance is outside the employee’s regular commodities or other property from the employer or
working hours; from any other person, or otherwise make use of any
b. Attendance is in fact voluntary; and store or services of such employer or any other person;
c. The employee does not perform any productive 3. To make any deductions from the employee’s wage
work during such attendance. (IRR of the LABOR except when authorized;
CODE, Book III, Rule I, Sec. 6). 4. To require employees to make deposits from which
deductions shall be made for reimbursement of loss of
- Thus, unless an employee is directed to attend the or damage to tools, materials, or equipment supplied by
seminar, it is not compensable. The employee, may the employer except when the employer is engaged in
freely choose whether or not to be promoted. such business requiring such deposits as determined by
the Secretary of Labor;
 Give at least 4 benefits under Book III of the Labor Code 5. To make any deductions from the employee’s deposits
as amended and the rationale for their grant to the for the actual amount of the loss or damage unless the
employees covered.
employee has been heard thereon and his responsibility
has been clearly shown;
1. Right to Regular Working Hours
6. To withhold any amount from the wages unless
2. Right to Regular Working Day
authorized to do so;
3. Right to Regular Meal Periods
7. To induce the employee to give up part of his wages by
4. Right to Weekly Rest Periods
force, stealth, intimidation, threat of dismissal or any
5. Right to Overtime Work
other means without his consent;
6. Right to Night-Shift Differential Pay
8. To make deductions as consideration of a promise of
7. Right to Compensation for Holiday Work
employment or retention of employment;
8. Right to Additional Compensation on scheduled rest
9. To refuse to pay or reduce the wages and benefits or
day, Sunday or special holiday work
otherwise discharge the employee who has filed any
9. Right to Service Incentive Leave
complaint under this Title, or has testified or is about to
10. Right to a Share in the Collected Service Charges
testify in such proceedings; and
10. To make any statement, report, or record knowing such
- The rationale is that a fair day’s wage for a fair day’s
statement, report, or record to be false in any material
labor.
respect. (Arts. 112-119, LABOR CODE)
 Leaves that employees are entitled to
 Facilities and Supplements
1. Service Incentive Leave
FACILITIES SUPPLEMENTS
2. Paternity, Maternity or Solo Parent Leave
Shall include all articles of Constitute extra
3. Leave for Victims of VAWC
services for the benefit of remuneration or special
 Wage and Salary
the employee or his family privileges or benefits given
but shall not include tools to or received by the
WAGE SALARY of the trade or articles or laborers over and above
service primarily for the their ordinary earning or
Compensation for skilled Paid to white collar
benefit of the employer wages
or unskilled manual labor workers and denote a
necessary to the conduct of
higher grade of
the employer’s business
employment
As to Deductability
 Wages and Prohibitions on Wages Part of the wage Independent of the wage
Deductible from the wage Not wage deductible
- Wage is the remuneration or earnings, however
designated, capable of being expressed in terms of  Non-diminution of benefits
money, whether fixed or ascertained on a time, task,
piece, or commission basis or other method of - Nothing in the Labor Code shall be construed to
calculating the same, which is payable by an employer eliminate or in any way diminish supplements, or other
to an employee under a written or unwritten contract of employee benefits being enjoyed at the time of the
employment for work done or to be done or for services promulgation of this Code. (Labor Code, Art. 100).

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
connection with his work provided in Art. 288 of the
- The employees have a vested right over existing Labor Code. (1 CHAN, supra at 416).
benefits voluntarily granted to them by their employer.
(U.E. v. U.E.E.A., G.R. No. 179593, September 14,  Undertime shall not be offset by overtime
2011).
- Offsetting of under time work by overtime work
- Thus, benefits given to the employees cannot be taken whether on the same day or any other day is prohibited
back or reduced unilaterally by the employer because by law. Such will result in the undue deprivation of the
the benefit has become part of the employment employee’s overtime premium and will also be
contract, written or unwritten. (Central Azucarera de detrimental to the employer as the employee may opt at
Tarlac v. Central Azucarera de Tarlac Labor Union, which time to go to work.
G.R. No. 18894, July 26, 2010).
 Thirteenth Month Pay and Bonus
 Overtime and Premium pay
13th MONTH PAY BONUS
OVERTIME PREMIUM A form of monetary benefit Gratuitous in nature. It is
Refers to the additional Refers to the additional equivalent to the monthly the amount granted and
compensation for work compensation required by basic compensation paid to an employee for his
performed beyond or in law to be paid for work received by an employee industry and loyalty which
excess of the regular 8 performed within the according to the number of contributed to the success
hours of daily work regular 8 hours on non- months within a year that of the employer’s business
working days; such as rest the employee has rendered and made possible the
days and special holidays service to the employer realization of profits.

- These are not mutually exclusive concepts. Every  What is Compressed Work Week?
employee who is entitled to premium pay is likewise
entitled to the benefit of overtime pay if overtime work - It is resorted to by the employer to prevent serious
is rendered. losses due to causes beyond his control, such as when
there is substantial slump in demand for his goods or
 May an employer require the render of overtime work? services or when there is lack of raw materials.
- To be an exception to the 8-hour a day requirement, the
General Rule: workers must agree to the temporary change of work
schedule and they do not suffer any loss of overtime
- Employees cannot be compelled to render overtime pay, fringe benefits or their weekly or monthly take-
work against their will. home pay.

Exceptions: CONDITIONS OF A VALID CWW SCHEME

1. It is expressly and voluntarily supporter by
1. In times of War or any national or local emergency majority of the employees affected.
declared by Congress or the Chief Executive; 2. If work is hazardous, there must be certification
2. Necessary to avail of favorable weather or from an accredited safety organization set by
environmental conditions where performance or quality DOLE’s occupational safety and health standards.
of work is dependent thereon; 3. The DOLE is duly notified.
3. When work is necessary to preserve perishable goods;
4. When work is Urgent work needed on machines and  Frontmen and supervisors recommending hiring and
equipment; firing but cannot do it per se-managerial employees?
5. Prevent Loss or Damage to life or property due to
emergencies and force majeure; and - Yes, Managerial Employees are employees who meet
6. Prevent serious obstruction or prejudice to business or the following conditions:
operations of the employer. (IRR of the Labor Code,
Book III, Rule I, Sec. 10). 1. Their primary duty consists of the management of
the establishment in which they are employed or of
 Consequences of employee who regularly refuses overtime a department or subdivision thereof;
work. 2. They customarily and regularly direct the work of
2 or more employees therein; and
- In the event that any of the circumstances enumerated 3. The have the authority to hire or fire other
in the law exists and the worker refuses to perform employees of lower rank; or their suggestions and
emergency overtime work, the employer may validly recommendations as to the hiring or firing and as
terminate his employment on the ground of to the promotion or any other change of status of
insubordination or willful disobedience by the other employees are given particular weight. (IRR
employee of the lawful order of his employer in of the LABOR CODE, Book III, Rule I, Sec. 2[b]).

 Two-tiered approach

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
1. The employers and employee shall endeavour to
1. The putative employer’s power to control employee correct the distortion.
with respect to the mans and methods by which the 2. Any dispute arising therefrom shall be settled
work is to be accomplished. through the National Conciliation and Mediation
2. The underlying economic realities of the activity or Board (NCMB).
relationship 3. If it remains unresolved after 10 days of
conciliation, it shall be referred to the NLRC. (Art.
 What is a Rest Day? 124, LABOR CODE).

- Right of an employee to a rest period of not less than 24

consecutive hours after every 6 consecutive normal NO CBA WITH CBA
work days. NCMB Grievance Machinery
LA Voluntary Arbitrator
 3 factors/criteria in issuing wage orders NLRC CA
CA SC
Factors for Determining Regional Minimum Wage
SC
Rates:
 Visitorial and Enforcement power of DOLE Director in
1. Needs of workers and their families: Art. 129 (Bombo Radyo)
a. Demand for living wages;
b. Wage adjustment vis-å-vis the consumer price index; - The jurisdictional limitation of no more than P5,000
c. Cost of living and changes or increase therein; threshold provided in Art 129 of the Labor Code has
d. Improvements in standards of living. been repealed by RA 7730
2. Fair return of the capital invested and capacity to pay of
employers;  Night Shift Differential v. Service Incentive Leave
3. Comparable wages and income;
4. Requirement of economic and social development: NSD SIL
a. Need to induce industries to invest in the It is an additional It is a 5-day leave with pay
countryside; compensation of not less for every employee who
b. Effects on employment generation and family than 10% of an employee’s has rendered at least 1 year
income; and regular wage for every of service. (Labor Code,
c. Equitable distribution of income and wealth along hour of work done between Art. 95).
the imperatives of economic and social development. 10pm and 6am, whether or
not such period is part of 1 year of service is a
 Wage Distortion and how is it resolved? the worker’s regular shift. service within 12 months,
whether continuous or
- Wage Distortion is a situation where an increase in broken, reckoned from the
prescribed wage rates results in the elimination or date the employee started
severe contraction of intentional quantitative working.
differences in wage or salary rates between and among
employee groups in an establishment as to effectively  Jurisdiction of DOLE v. LA (Bombo Radyo Case)
obliterate the distinctions embodied in such wage
structure based on skills, length of service or other - If there is an existing EE-ER relationship, DOLE takes
logical bases of differentiation. (1 AZUCENA, supra at cognizance of the case, to the exclusion of the NLRC.
364). 1. power of the DOLE to determine the existence of
an Er-Ee relationship need not necessarily result in
Resolving Wage Distortion an affirmative finding
2. DOLE had the jurisdiction, despite the amount of
A. Organized Establishment (Establishment with a the money claims involved
Union)
- If EE-ER already been terminated, or it appears, upon
1. The Employer and the Union shall negotiate to review, that no employer-employee relationship existed
correct the distortion. in the first place, DOLE would have no jurisdiction. It
2. Any dispute arising therefrom should be resolved would be the NLRC.
through grievance procedure under their CBA.
3. If the dispute remains unresolved, it shall be - If a complaint is filed with the DOLE, and it is
resolved through voluntary arbitration. accompanied by a claim for reinstatement, the
jurisdiction is properly with the Labor Arbiter
B. Unorganized Establishment (Establishment without
a Union) - The findings of the DOLE, however, may still be
questioned through a petition for certiorari under Rule
65 of the Rules of Court.

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 LABOR STANDARDS
Atty. Peter Joey B. Usita

 Regular v. Special Holidays  Grounds for Denial of Claims in ECL

REGULAR SPECIAL 1. Intoxication;

Compensable worked or 2. Willful intention to injure or kill himself or another;
Not Compensable if 3. Notorious negligence; or
unworked subject to certain
Unworked. 4. Otherwise provided by the Labor Code:
conditions.
Not Exclusive since law or a. Prescription of Actions; and
List is Exclusive ordinance may provide for b. 24-Hour Duty Doctrine
others.
Rate is 200% of the regular Rate is 130% of regular  5 instances when separation pay in lieu of reinstatement
rate if worked. wage if worked. may be awarded

 April 8-13 vacation-with holiday pay? -

- BOOK IV

 Workmen’s Compensation Act v. Employee’s  24 – hour duty Doctrine and its exceptions
Compensation Law
General Rule:
OLD LAW NEW LAW
As to presumption of aggravation - Under the 24-Hour Duty Doctrine, members of the
There is presumption of No presumption of PNP, AFP and even BFP by the nature of their
aggravation aggravation functions are technically on duty 24 hours a day except
As to employer’s right to controvert claim when they are on vacation leave. Death arising from
The employer should Since the claim of the service, although not in official line of duty is
controvert or dispute the employee for compensation compensable.
claim for compensation is directed against the State
within 14 days from the Insurance Fund, the Exceptions:
date of disability, or within employer does not have to
10 days after he had controvert the claim 1. On Vacation Leave;
acquired knowledge thereof; 2. Went AWOL; or
otherwise, he would be 3. Not work connected.
considered to have waived
 Principle of Aggravation
his right to dispute the claim
and will be ordered to pay
- Under this theory, disease contracted by an employee
the compensation
while performing regular activities of employment or
As to who is liable
while employed will be presumed to be a compensable
Payment of compensation is Payment of the
disease and the burden falls on the employer to
made by the employer compensation is made by the
controvert or dispute the claim for compensation.
SSS/GSIS through the State
Insurance Fund. The
- Theory of Aggravation has been abandoned under the
Employer’s Obligation is
New Labor Code. However, in Lazo v. ECC the SC
merely to pay his counter
held that “While these have been abandoned, the
contribution to the SSS
liberality of the law subsists. All doubts shall be
As to liability to employer resolved in favor of the labor”
If an ailment of an The rule on aggravation of
employee was aggravated illness which gives rise to  Going and Coming Rule – give exceptions to the rule
by his work, the employer is employer’s liability was
liable for compensation abolished General Rule:
As to nature of proceedings
Litigous; quasi-judicial Administrative - In the absence of special circumstances, an employee
injured in, going to, or coming from, his place of work
 Valid grounds for the dismissal of an employee is excluded from the benefits of workmen’s
compensation acts.
1. Serious Misconduct
2. Willful Disobedience or Insubordination Exceptions:
3. Gross and Habitual Neglect of Duties
4. Fraud or Willful Breach of Trust 1. Where the employee is proceeding to or from his work
5. Loss of Confidence in the premises of his employer;
6. Commission of Crime or Offense 2. Ingress-Egress/Proximity Rule – Where the employee is
7. Analogous Causes about to enter or about to leave the premises of his

SAN BEDA COLLEGE OF LAW - MENDIOLA 8

 LABOR STANDARDS
Atty. Peter Joey B. Usita
employer by way of the exclusive or customary means As to validity
of ingress and egress; Prohibited by law Permissible
3. Special Errand Rule – Where the employee is charged, As to capital
while on his way to or from his place of employment or There is an absence of There is a presence of
at his home, or during his employment, with some duty substantial capital or substantial capital or
or special errand connected with his employment; and investment investment
4. Extra-Premises Rule/The Shuttle Bus Rule – Where the
employer, as an incident of the employment, provides  In labor-only contracting, the principal is considered as
the means of transportation to and from the place of the agent of the labor-only contractor? True or false.
employment. (Iloilo Dock & Eng’g. Co. v. WCC, et al., Explain.
L-26341, November 27, 1978).
- False. The employer/principal is treated as direct
 Contracting, independent contracting, subcontracting, employer of the contractor’s employees in all instances
labor-contracting (Definitions) (contractor is deemed agent of the employer and not
the other way around)
JOB – An arrangement whereby a principal
CONTRACTING/ agrees to farm out to a contractor the  Theory of Increased Risk
SUB - performance or completion of a
CONTRACTING specific job or work within a definite - If the ailment is not included in the list of occupational
or predetermined period, regardless of disease, the claimant has the burden of proving that the
whether such job or work is to be nature of the work increased the risk of contracting the
performed or completed within or disease. (Dabatian v. GSIS, G.R. No. 47294, April 8,
outside the premises of the principal 1987).
LABOR – ONLY Refers to an arrangement where the
CONTRACTING contractor or subcontractor recruits,  What is an occupational disease? How to determine if it’s
supplies or places workers to perform compensable?
a job or work for a principal.
INDEPENDENT - Occupational disease is one which results from the
CONTRACTING nature of the employment. By nature, is meant
conditions to which all employees of a class are subject
 Labor-Only Contracting v. Legitimate Contracting and which produce the disease as a natural incident of a
particular occupation. (1 POQUIZ, supra at 382).
LABOR – ONLY LEGITIMATE
As to nature of employer / principal - Occupational diseases are those listed by the
The employer or principal The employer or principal Commission
is treated as direct is merely an indirect
employer of the employer, by operation of - If the illnesses are not occupational diseases, the
contractor’s employees in law, of his contractor’s claimant must present proof that he contracted them in
all instances (contractor is employees the course of his employment. He who alleges a fact
deemed agent of the has the burden of proving it and a mere allegation is not
employer) evidence.
As to existence of Er – Ee Relationship with employer
 What is notorious negligence?
/ principal
The statute creates an Er- The law creates an Er-Ee - Notorious Negligence is a deliberate act of the
Ee relationship for a relationship for a limited employee to disregard his own personal safety
comprehensive purpose (i.e. to ensure that
purpose (i.e. to prevent a the employees are paid
General Rule:
circumvention of labor their wages)
laws) - Notorious Negligence resulting in serious injury or
As to liability of principal death of the employee is not compensable
The principal becomes The principal becomes
solidarily liable with the solidarily liable with the Exception:
contractor not only for contractor in the event the
unpaid wages but also for latter fails to pay the 1. Lack of knowledge or awareness of the peril of the
all the rightful claims of employees’ wages and for seriousness of the existing danger; or
the employees under the violation of labor standard 2. The unexpectedness, under the circumstances, of the
LC and ancillary laws laws. The liability, accident
however, does not extend
to the payment of back-  Presumption of Compensability
wages or separation pay of
employees who are - Presumption of Compensation has likewise been
illegally dismissed abandoned under the New Labor Code.

SAN BEDA COLLEGE OF LAW - MENDIOLA 9

 LABOR STANDARDS
Atty. Peter Joey B. Usita

Lazo v. ECC: “While these have been abandoned, the - The following are recognized as a guarantee on the part
liberality of the law subsists. All doubts shall be resolved in of the receiving country for the protection of overseas
favor of the labor” Filipino workers’:

1. It is a signatory to and/or ratifier of multilateral

conventions, declarations or resolutions relating to
SPECIAL LAWS the protection of migrant workers;
2. It has concluded a bilateral agreement or
arrangement with the government protecting the
MIGRANT WORKER’S ACT
rights of overseas Filipino workers; or
 “Who is considered an “Overseas Filipino Worker”?
3. It has existing labor and social laws protecting the
rights of migrant workers;
- Refers to a person who is to be engaged, is engaged or 4. The receiving country should take positive,
has been engaged in a remunerated activity in a state of concrete measures to protect the rights of migrant
which he or she is not a citizen or on board a vessel workers in furtherance of any of the guarantees
navigating foreign seas, other than a government ship under subparagraphs (a), (b), and (c) hereof.
used for military or non-commercial purposes, or on an
 When is repatriation of OFWs mandatory?
installation located offshore or on the high seas.
- Repatriation of OFWs is mandatory if the migrant
- To be used interchangeably with migrant worker.
worker is a minor and if it is a case of medical
 When may the State allow the deployment of migrant
repatriation wherein it is medically necessary as
workers? determined by the attending physician.

- The State may only allow the deployment of migrant  Enumerate the salient features of RA 10022 geared
towards the protection of OFWs.
workers under the following conditions:
A. Compulsory Insurance Coverage
a. It is a signatory to and/or ratifier of multilateral
conventions, declarations or resolutions relating to
1. Accidental death
the protection of migrant workers;
2. Permanent total disablement
b. It has concluded a bilateral agreement or
3. Repatriation cost of the worker when his/her
arrangement with the government protecting the
employment is terminated without any valid cause
rights of OFWs;
4. Subsistence allowance benefit (for migrant worker
c. It has existing labor and social laws protecting the
involved in a case or litigation for the protection of
rights of migrant workers;
his/her rights in the receiving country)
d. The receiving country should take positive,
5. Money claims arising from employer's liability
concrete measures to protect the rights of migrant
which may be awarded or given to the worker in a
workers.
judgment or settlement of his or her case in the
 Discuss the nature of the liability of the
NLRC
principal/employer and the recruitment/placement agency 6. Compassionate visit
for money claims of an OFW. 7. Medical evacuation
8. Medical repatriation.
- The liability of the principal and the recruitment agency
for money claims of an OFW is solidary. The exception  Remedies available to OFWs
would be if despite the knowledge of the principal to
pay wages, the OFW still insists for the recruitment - Money claims of OFWs arising from employer –
agency to send them back. employee relationship or employment contract belongs
to the exclusive and original jurisdiction of the Labor
 Compassionate Visit Arbiter of the NLRC.
- It is when a migrant worker is hospitalized and has been
confined for at least 7 consecutive days, he shall be - The reliefs available are:
entitled to a compassionate visit by 1 family member or
a requested individual. 1. Reimbursement for placement fees at 12% per
annum
 May the State allow the deployment of migrant workers? 2. As provided for by Serrano and Thenamaris, the
payment of the unexpired portion of contract
- The State shall allow the deployment of overseas 3. Damages (actual, moral, exemplary and liquidated
Filipino workers only in countries where the rights of damages)
Filipino migrant workers are protected.

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
- OFWs cannot be reinstated because they do not become days does not exceed 7 child birth, which
regular employees; they are contractual employees. working day notice shall be
2. The benefit must be transmitted to the SSS
availed of not later 2. The full payment shall
than 60 days after date be advanced by the
of delivery employer within 30
days from the filing of
the maternity leave
PATERNITY and MATERNITY LEAVE application
3. The payment of daily
 Paternity v. Maternity Leave Benefits maternity benefits
shall be a bar to the
PATERNITY MATERNITY recovery of sickness
Refers to the benefits A female member who has benefits provided by
granted to a married male paid at least 3 more this Act for the same
employee allowing him not contributions in the twelve- compensable period of
to report for work for 7 month period immediately 60 days for the same
days but continues to earn preceding the semester of childbirth or
the compensation therefor, childbirth or miscarriage miscarriage
on the condition that his shall be paid a daily
spouse has delivered a maternity benefit As to the number of deliveries or miscarriages
child or suffered a equivalent to 100% of her Only the first four Only the first four
miscarriage for enabling average daily salary credit
him to effectively lend to for 60 days or 78 days in SENIOR CITIZEN’S ACT
support his wife in her case of caesarean delivery.
period of recovery and/or  Senior Citizen’s Act
in the nursing of the newly
born child. - Any resident citizen of the Philippines at least 60 years
As to the conditions for entitlement old
1. He is an employee at 1. The female member
the time of the delivery must should be an SSS RIGHTS, PRIVILEGES AND BENEFITS
of his child member
2. He is cohabiting with 2. She must be employed 1. Grant of 20% discount and exemption from the VAT, if
this spouse at the time at the time of delivery, applicable, on the sale of the following goods and
she gives birth or miscarriage or abortion services from all establishments, for the exclusive use
suffers a miscarriage 3. She must have given and enjoyment or availment of the senior citizen:
3. His wife has given birth the required a. On the purchase of medicines, including the
or suffered a notification to the SSS purchase of influenza and pneumococcal vaccines,
miscarriage through her employer and such other essential medical supplies,
4. It covers only the first 4 4. The female member accessories and equipment to be determined by the
deliveries or must have paid at least DOH;
miscarriages 3 months of maternity b. On the professional fees of attending physicians in
contributions in the all private hospitals, medical facilities, outpatient
12-month period clinics, and home health services;
immediately before c. On medical and dental services, diagnostic and
the semester of her laboratory fees in all private hospitals, etc.;
childbirth or d. In actual fare for land transportation on travel in
miscarriage PUBS, PUJS, taxis, AUVS, shuttle services and
public railways including LRT, MRT, PNR;
As to the Civil Status e. In actual transportation fare for domestic air
Every married male Every pregnant woman is transport services and sea shipping vessels and the
employee in the private entitled to maternity leave like, based on the actual fare and advanced booking;
sector shall be entitled benefits regardless of her f. On the utilization of services in hotels and similar
civil status, whether lodging establishments, restaurants and recreation
married or unmarried. centers;
g. On admission fees charged by theaters, cinema
As to the conditions
houses and concert halls, circuses, leisure and
1. The paternity benefit 1. The employee should
amusement; and
may be availed of have notified her
h. On funeral and burial services for the death of senior
before, during or after employer of her
citizens
delivery, provided that pregnancy and the
the total number of probable date of her

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
2. exemption from the payment of individual income taxes responsibility of parenthood due to declaration of
of senior citizens who are considered to be minimum nullity or annulment of marriage as decreed by a
wage earners court or by a church as long as he/she is entrusted
3. grant of a minimum of 5% discount relative to the with the custody of the children;
monthly utilization of water and electricity; provided 6. Parent left solo or alone with the responsibility of
the individual meters for the foregoing utilities are parenthood due to abandonment of spouse for at
registered in the name of the senior citizen residing least one (1) year;
therein; provided, further, the consumption does not 7. Unmarried mother/father who has preferred to keep
exceed 100kilowatt hours of electricity and 30 cubic and rear her/his child/children instead of having
meters of water others care for them or give them up to a welfare
4. exemption from training fees for socioeconomic institution;
programs 8. Any other person who solely provides parental care
5. free medical and dental services, diagnostic and and support to a child or children;
laboratory fees 9. Any family member who assumes the
6. Free vaccination against influenza virus and responsibility of head of family as a result of the
pneumococcal virus by the DOH for indigent senior death, abandonment, disappearance or prolonged
citizen patients absence of the parents or solo parent.
7. educational assistance to senior citizens
8. to the extent praticable and feasible, the continuance of MINORS / ANTI - VAWC
the same benefits and privileges given by the GSIS,
SSS and the PAG-IBIG  Who are minors? When may they be employed?
9. special discounts in special programs for senior citizens
on purchase of basic commodities - Any person under 18 years of age.
10. express lanes for senior citizens in all commercial and - Yes, minors may be employed – subject to the
government establishments. in the absence thereof, following conditions:
priority shall be given to them
11. death benefit assistance of a minimum shall be given to ANTI – SEXUAL HARASSMENT
the nearest surviving relative of the deceased senior
citizen  Anti-Sexual Harassment Act

 In the absence of a retirement plan or agreement - When a person demands, requests or otherwise requires
providing for retirement benefits of employees in the any sexual favor from another.
establishment, a retiring employee is entitled to retirement
pay equivalent to 15 days of his salary for every year of
service. True or false? Explain.
1. In work-related or employment environment:
A. Sexual favor is made as a condition:
- a. In the hiring or in the employment;
b. Re-employment or continued employment
of said individual; or
SOLO PARENT ACT
c. In granting said individual favorable
 Solo Parent
compensation, terms, conditions,
promotions or privileges.
- Any individual who falls under any of the following B. Refusal to grant the sexual favor results in
categories: limiting, segregating or classifying the
1. A woman who gives birth as a result of rape and employee which in anyway would
other crimes against chastity even without a final discriminate, deprive, or diminish employment
conviction of the offender: Provided, That the opportunities or otherwise adversely affect
mother keeps and raises the child; said employee;
2. Parent left solo or alone with the responsibility of C. The above acts would impair the employee’s
parenthood due to death of spouse; rights and privileges under existing labor laws;
3. Parent left solo or alone with the responsibility of and
parenthood while the spouse is detained or is D. The above acts would result in an intimidating,
serving sentence for a criminal conviction for at hostile, or offensive environment for the
least one (1) year; employee.
4. Parent left solo or alone with the responsibility of
parenthood due to physical and/or mental 2. In an education or training environment:
incapacity of spouse as certified by a public A. Against one who is under the care,
medical practitioner; custody or supervision of the offender;
5. Parent left solo or alone with the responsibility of B. Against one whose education, training,
parenthood due to legal separation or de facto apprenticeship or tutorship is entrusted to the
separation from spouse for at least one (1) year, as offender;
long as he/she is entrusted with the custody of the C. When sexual favor is made a condition to
children; 6) Parent left solo or alone with the the giving of a passing grade, or the granting of

SAN BEDA COLLEGE OF LAW - MENDIOLA 12

 LABOR STANDARDS
Atty. Peter Joey B. Usita
honors and scholarships or the payment of a sleeping or lactation quarters and means of transport;
stipend, allowance, or other benefits, privileges or (b) conduct of medical examination to determine fitness
considerations; and for night work; and (c) the observance of legal process
D. When sexual advances result in an to decide appropriate action where a worker is found
intimidating, hostile, or offensive environment for unfit (usually includes the process of transferring the
the trainee or apprentice. worker to day work, if practicable).

 Requisites of Sexual Harassment

1. The offender demands or requests or requires any

sexual favor from the other regardless of whether the
demand request or requirement for submission is PERSONS WITH DISABILITIES
accepted by the object of the said act
 Persons with disabilities
2. That the offender is:
a. an employer, - Those suffering from restriction or different disabilities
b. employee, as a result of a mental, physical, or sensory impairment
c. manager, to perform an activity in the manner or within the range
d. supervisor, considered normal for a human being.
e. agent of the employer,
f. teacher,  Permanent Total Disability
g. instructor,
h. professor, - If, as a result of the injury or sickness, the employee is
i. coach, unable to perform any gainful occupation for a
j. trainer or continuous period exceeding 240 days.
k. any other person,
l. any person who directs or induces another to - The following disabilities shall be considered
commit any act of sexual harassment as herein permanent total:
defined. OR
m. Any person who cooperates in the commission by 1. A disability acknowledged by the company as
another without which it would NOT have been permanent total within the periods allowed by law
committed, shall also be held liable under this Act (120 days, extendible to 240 days)
2. Upon expiration of the maximum 240-day medical
3. That the offender has authority, influence or moral treatment period without a declaration of either
ascendancy over another in a work or training or education fitness to work or the existence of a permanent
environment, who demands, requests or otherwise requires disability
any sexual favor from another, 3. Complete loss of sight of both eyes
4. Loss of two limb at or above the ankle or wrist
 Battered Woman Syndrome 5. Permanent complete paralysis of two limbs
6. Brain injury resulting in incurable imbecility or
- It refers to a scientifically defined pattern of insanity
psychological and behavioral symptoms found in 7. Such cases determined by GSIS or SSS, as the case
women living in battering relationships as a result of may be, and approved by the Commission.
cumulative abuse.
- If, as a result of the injury or sickness, the employee is
NIGHT WORKER’S ACT unable to perform any gainful occupation for a
continuous period exceeding 240 days.
 Who is considered a night worker? What are his benefits
under the law? - The following disabilities shall be considered
permanent total:
- D.O. No. 119-12 (dated January 20, 2012) defines a
night worker as “any employed person whose work
1. A disability acknowledged by the company as
covers the period from 10:00 in the evening to 6:00 in
permanent total within the periods allowed by law
the morning, provided that the worker performs no less
(120 days, extendible to 240 days)
than seven consecutive hours of work.”
2. Upon expiration of the maximum 240-day medical
treatment period without a declaration of either
BENEFITS
fitness to work or the existence of a permanent
disability
- He is entitled to NSD.
3. Complete loss of sight of both eyes
- Also, the law protects the workers by requiring
4. Loss of two limb at or above the ankle or wrist
employers to: (a) provide certain facilities such as

SAN BEDA COLLEGE OF LAW - MENDIOLA 13

 LABOR STANDARDS
Atty. Peter Joey B. Usita
5. Permanent complete paralysis of two limbs - The three years have to be counted from the time
6. Brain injury resulting in incurable imbecility or the employee lost his earning capacity, not from the
insanity time the illness was discovered (ECC v. Sanico, GR no.
7. Such cases determined by GSIS or SSS, as the case 134028, December 17, 1999)
may be, and approved by the Commission.
 Legal grounds of the State Insurance Fund to deny a claim
for compensation made by a covered employee or his
dependents

- Art 178 provides—

General Rule:
SSS, GSIS and LIMITED PORTABILITY LAW
- The State Insurance Fund shall be liable for
 Limited Portability Law compensation to the employee or his dependents

- It shall apply in the following instances: Exception:

1. If a worker is not qualfied for any benefits from
both System - No compensation if the injury, death, or disability is the
2. If a worker in the public sector is not qualified for result of the employee’s (WINO)
any benefits in the GSIS
3. If a worker in the private sector is not qualified for 1. Willful intention to injure or kill himself or another
any benefits from the SSS. 2. Intoxication
3. Notorious negligence
4. Otherwise provided in the Labor Code
- Under this law, retirees may combine their years of
service in the private sector represented by
 Explain “no double recovery rule” under State Insurance
contributions to the Social Security System with their Fund.
government service and contributions to the GSIS to
satisfy the required years of service under PD 1146 and - The injured employee cannot claim payment twice for
RA 8291. the same injury from both the third party and the GSIS
or SSS, as the case may be (Alba v. Bulaong, GR Nos.
 Nature and Purpose of the State Insurance Fund
L-10308 and L-10385-8, APril 30 , 1957)
NATURE
- No contract, regulation, or device whatsoever shall
- all covered employers are required to remit to a operate to deprive the employee or his dependents of
common fund a monthly contribution equivalent to one any part of the income benefits, and medical or related
percent of the monthly salary credit of every covered services granted under this Title (LABOR CODE, Art.
employee. The employee pays no contribution to the 181)
fund. The employer’s contributions make up the SIF
from which the compensation to be paid to claimant KASAMBAHAY LAW
employee or the employee’s dependents in case the
employee suffers from a work-connected injury or  Who is a Kasambahay?
disease.
- All kasambahay engaged in domestic work, whether on
PURPOSE a live-in or live-out arrangement, such as, but not
limited to, the following:
- To provide compensation for disability or death 1. General househelp;
resulting from occupational injuries or diseases, or 2. Nursemaid or yaya;
accidental injury to, or death of employees. It is for the 3. Cook;
benefit of the injured employees and not for the injured 4. Gardener;
employers. 5. Laundry person;
6. Working children or domestic workers 15 years
 Prescription of Claims against the State Insurance Fund and above but below 18 years of age; or
7. Any person who regularly performs domestic work
- Despite the three-year prescriptive period expressly in one household on an occupational basis (live-out
provided in Art. 201, a compensation clain may be filed arrangement).
beyond this but before the lapse of the 10th year from
accrual of the cause of action, applying Art. 1144 of the - Excluded from the definition are:
NCC (Manila Railroad Co. v. Perez, GR No. L-21071,
June 29, 1965) 1. Service providers;
2. Family drivers;

SAN BEDA COLLEGE OF LAW - MENDIOLA 14

 LABOR STANDARDS
Atty. Peter Joey B. Usita
3. Children under foster family arrangement; SECTION 18. Valuation and Mode of Compensation. —
4. Any other person who performs work occasionally The LBP shall compensate the landowner in such amounts
or sporadically and not on an occupational and regular as may be agreed upon by the landowner and the DAR and
the LBP, in accordance with the criteria provided for in
basis.
Sections 16 and 17, and other pertinent provisions hereof, or
as may be finally determined by the court, as the just
 Enumerate the benefits of a domestic worker under the
compensation for the land.
Kasambahay Law
The compensation shall be paid on one of the following
1. Monthly minimum wage;
modes, at the option of the landowner:
2. Daily rest period of 8 (total) hours;
3. Weekly rest period of 24 (uninterrupted) hours 1. Cash payment, under the following terms and
4. 5 days annual service incentive leave with pay; conditions;
5. 13th month pay; a. For lands above — Twenty-five percent fifty (50)
6. SSS benefit; hectares, insofar (25%) cash, the balance to as the
7. PhilHealth benefit; and excess hectarage is be paid in government
concerned. financial instruments negotiable at any
8. Pag-IBIG benefit
time.
b. For lands above — Thirty percent (30%) cash,
 Rights of a Kasambahay twenty-four (24) hectares the balance to be paid in
and up to fifty (50) hectares. government financial
1. Minimum wage instruments negotiable at any time.
2. Mandatory benefits such as service incentive leave and c. For lands twenty-four — Thirty-five percent (35%)
13th month pay (24) hectares and below. cash, the balance to be
3. Freedom from employer’s interference in wage disposal paid in government financial instruments
4. Standard of treatment negotiable at any time.
- The employer or any member of the household shall not 2. Shares of stock in government-owned or controlled
subject a domestic worker or “kasambahay” to any kind corporations, LBP preferred shares, physical assets or
of abuse nor inflict any form of physical violence or other qualified investments in accordance with
harassment or any act tending to degrade the dignity of guidelines set by the PARC;
a domestic worker. 3. Tax credits which can be used against any tax liability;
1. Board, lodging, and medical attendance 4. LBP bonds, which shall have the following features:
- The employer shall provide for basic necessities: a. Market interest rates aligned with 91-day treasury
- At least 3 adequate meals a day, taking into bill rates. Ten percent (10%) of the face value of
consideration the kasambahay’s religious beliefs and the bonds shall mature every year from the date of
cultural practices; issuance until the tenth (10th) year: Provided, That
- Humane sleeping condition; and should the landowner choose to forego the cash
- Appropriate rest and basic medical assistance, including portion, whether in full or in part, he shall be paid
first-aid medicines, in case of illnesses and injuries correspondingly in LBP bonds;
sustained during service without loss of benefits b. Transferability and negotiability. Such LBP bonds
may be used by the landowner, his successors in
2. Right to privacy interest or his assigns, up to the amount of their
3. Access to outside communication face value, for any of the following:
- During free time i. Acquisition of land or other real properties of
- In cases of emergency, access to communication shall the government, including assets under the
be granted during work time Asset Privatization Program and other assets
foreclosed by government financial institutions
4. Access to education and training in the same province or region where the lands
5. Right to be provided a copy of the employment contract for which the bonds were paid are situated;
6. Right to Certificate of Employment ii. Acquisition of shares of stock of government
7. Right to form, join, or assist labor organization owned or -controlled corporations or shares of
8. Right to terminate employment based on just cause stocks owned by the government in private
9. Right to exercise religious beliefs and cultural practices. corporations;
iii. Substitution for surety or bail bonds for the
CARL provisional release of accused persons, or
performance bonds;
 “Under the CARL, landowners may only be paid in cash iv. Security for loans with any government
and LBP bonds.” Agree or disagree? Explain your financial institution, provided the proceeds of
answer. the loans shall be invested in an economic
enterprise, preferably in a small-and medium-
- Disagree. Under RA 6657, sec. 18: scale industry, in the same province or region
as the land for which the bonds are paid;

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
v. Payment for various taxes and fees to compensation determined by the DAR, he can the
government; Provided, That the use of these matter to the Courts.
bonds for these purposes will be limited to a 5. Payment of the just compensation as determined by the
certain percentage of the outstanding balance DAR or the Court.
of the financial instruments: Provided, further, 6. Registration with the Register of Deeds for the issuance
That the PARC shall determine the percentage of Transfer Certificate of Title in the name of the
mentioned above; Republic of the Philippines.
vi. Payment for tuition fees of the immediate 7. Standing Crops: The landowner shall retain his share
family of the original bondholder in of any standing crops unharvested at the time the DAR
government universities, colleges, trade shall take possession of the land and shall be given
schools, and other institutions; reasonable time to harvest the same (Section 28).
vii. Payment for fees of the immediate family of
the original bondholder in government  “The Regional Trial Courts have been divested of their
hospitals; and jurisdiction over agrarian reform matters.” Agree or
viii. Such other uses as the PARC may from time to disagree? Explain your answer.
time allow.
-
- In case of extraordinary inflation, the PARC shall take
 Why is the CARL revolutionary?
appropriate measures to protect the economy
- As ruled in the Association of Small Land Owners
 “Under the CARL, if a person is landless, he is
Case, what we deal with here is a revolutionary kind of
automatically qualified as an agrarian reform
beneficiary.” Agree or disagree? Explain your answer. expropriation. It affects all private agricultural lands
whenever found and of whatever kind as long as they
- Disagree. In the case of Assoc of Small Land Owners are in excess of the maximum retention limits allowed
vs Sec of Agra Reform it was held that Money as [sole] their owners. This kind of expropriation is intended for
payment for just compensation is merely a concept in the benefit not only of a particular community or of a
traditional exercise of eminent domain. The agrarian small segment of the population but of the entire
reform program is a revolutionary exercise of eminent Filipino nation, from all levels of our society, from the
domain. The program will require billions of pesos in impoverished farmer to the land-glutted owner. Its
funds if all compensation have to be made in cash – if purpose does not cover only the whole territory of this
everything is in cash, then the government will not have country but goes beyond in time to the foreseeable
sufficient money hence, bonds, and other securities, i.e., future, which it hopes to secure and edify with the
shares of stocks, may be used for just compensation. vision and the sacrifice of the present generation of
Filipinos. Generations yet to come are as involved in
 Distinguish between leasehold tenancy and sharehold this program as we are today, although hopefully only
tenancy. as beneficiaries of a richer and more fulfilling life we
will guarantee to them tomorrow through our
LEASEHOLD SHAREHOLD thoughtfulness today. And, finally, let it not be
forgotten that it is no less than the Constitution itself
that has ordained this revolution in the farms, calling
 Discuss the procedure in the acquisition of private for "a just distribution" among the farmers of lands that
agricultural lands under the CARL. have heretofore been the prison of their dreams but can
now become the key at least to their deliverance.
COMPULSORY ACQUISITION PROCESS
 Who are the qualified beneficiaries of the CARP?
1. Notice to acquire the land shall be sent to the landowner
and the beneficiaries. The notice shall also be posted in 1. Agricultural lessees and share tenants;
a conspicuous place in the municipal building and the 2. Regular farmworkers;
barangay hall of the place where the property is located. 3. Seasonal farmworkers;
2. Within thirty (30) days from receipt of the written 4. Other farmworkers;
notice, the landowner shall inform the DAR of his 5. Actual tillers or occupants of public lands;
acceptance or rejection of the offer. 6. Collectives or cooperatives of the above beneficiaries;
3. If the offer is accepted, the LBP pays the landowner and
and within thirty (30) days, the landowner executes and 7. Others directly working on the land.
delivers a deed of transfer to the Government and
surrenders the Certificate of Title and other muniments HYPOTHETICAL QUESTIONS
of title.
4. In case of rejection or failure to reply, the DAR shall  ABC Inc. filed a petition for bankruptcy before the RTC
conduct summary administrative proceedings to of Manila, which listed the following creditors, notably: 1.
determine the compensation. If he does concur with the The Development Bank of the Philippines; 2. Various
supplies; 3. BIR; and 4. LMN union, in behalf of

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
employees for unpaid wages, 13th month pay, ECOLA,
leaves, and bonuses. - Since X does not fall under those exempted from the
benefits provided by Book 3, Title I, he is entitled to
 Relative to the employees’ claims, what is the overtime pay.
standing of the DBP, BIR, and other creditors?
Explain.  The meal time (lunch break) for the dining crew in
Masarap Restaurant is either from 10AM to 11AM or
- The employees’ claims shall not take preference over from 1:30PM to 2:30PM with pay. The management
DBP’s, BIR’s and creditors’ claims and will be taken wants to change the meal time to 12:30 to 1:30PM without
as an ordinary preferred credit under Art. 2244 of the pay. According to the management, the change will be
Civil Code, because there has not been a formal legal because absent an agreement to the contrary, the
declaration of bankruptcy or a judicial liquidation management has the prerogative to determine work hours
which is required to enforce worker preference in case and, by law, meal break is without pay. Rule on the
legality of this contention.
of bankruptcy.
- The contention of the management is
- Under Art. 110 of the Labor Code, workers shall enjoy correct. According to Article 85 of the Labor Code, “it
first preference as regards their unpaid wages and shall be the duty of every employer to give his
other monetary claims, provided that the following employees not less than sixty (60) minutes time-off for
conditions are complied with: their regular meals.” Furthermore, in Sime Darby
1. Formal declaration of insolvency or bankruptcy; Pilipinas, Inc. vs. NLRC, it was held that the right to fix
2. General judicial liquidation proceedings of the the work schedules of the employees rests principally
employer’s business; and on their employer. Since the employees are no longer
3. Filing of claims by workers required to work during the one-hour lunch break, there
is no more need for them to be compensated for this
- Further, it has been held in the case of DBP and NLRC period. The Supreme Court agrees with the Labor
and Ang, that declaration of bankruptcy or a judicial Arbiter that the new work schedule fully complies with
liquidation must be present before the workers’ the daily work period of eight (8) hours without
preference may be enforced. Art. 110 and its IRR may violating the Labor Code.
not be invoked by the employees absent formal
declaration of bankruptcy or a liquidation order.
- In the instant case, Masarap Restaurant’s changing of
meal time from 10AM to 11AM or from 1:30PM, with
- In the case at bar, ABC Inc. merely filed a petition pay, to 2:30PM to 12:30-1:30PM, without pay is still
before the RTC of Manila judicial liquidation consistent with the provisions relative to the non-
proceedings or insolvency proceedings have not been compensable meal period of not less than 60 minutes.
commenced. Hence, the change of lunch break from paid to unpaid is
valid.
 X works as a driver at Hospicio de San Beda, a charitable
institution dependent for its existence on contributions
and donations, X renders work 12 hours a day but has not
- For a full one-hour undisturbed lunch break, the
been given overtime pay since his place of work is a non- employees can freely and effectively use this hour not
stock, non-profit charitable institution. Is X entitled to only for eating but also for their rest and comfort which
overtime pay? are conducive to more efficiency and better
performance in their work.
- Yes, X is entitled to overtime pay. Under Article 87 of
the LC, work may be performed beyond 8 hours a day - Furthermore, in a jurisprudence, it was noted that “the
provided that the that the employee is paid for the eight- hour work period does not include the meal
overtime work, an additional compensation equivalent break. Nowhere in the law may it be inferred that
to his regular wage plus at least 25% thereof. As a employees must take their meals within the company
general rule, according to Article 82 of the LC, the premises. Employees are not prohibited from going out
provisions of Book 3, Title 1 shall apply to employees of the premises as long as they return to their posts on
in all establishments and undertakings whether for time.
profit or not, but not to the following:
 Y, a computer analyst and programmer of Mukhangbook
1. Government employees Solutions Inc, works nine hours a day from Monday to
2. Managerial employees, including other officers or Friday at the main office of the company. On Saturdays,
he is not required to report to the main office. However,
members of the managerial staff
the company requires him to keep his cellular phone open
3. Field personnel so that the management could contact him in case of heavy
4. The employer’s family members who depend on him work load or emergency problems needing his expertise.
for support May said hours on Saturdays be considered compensable
5. Domestic helpers working hours “while on call”? Explain.
6. Persons in the personal service of another
7. Workers who are paid by results as determined by - No, said hours are not considered compensable working
DOLE regulations hours while “on call”. An employee who is required to

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
remain on call on the employer’s premises or so close exercise supervision and control over the latter. The
thereto that he cannot use the time effectively for his fact that the drivers do not receive fixed wages but get
own purpose is working while “on call”. An employee only that in excess of the so-called "boundary" they pay
who is not required to remain on the employer’s to the owner/operator is not sufficient to withdraw the
premises but is merely required to leave words at his relationship between them from that of employer and
home, with company officials where he may be employee.
reached, or he is kept “within reach” through a mobile
phone or other contact device is not working while on - The doctrine is applicable by analogy to Martinez v.
call. (Azucena, 2016, p. 234) NLRC, G.R. No. 117495, May 29, 1997, which involved
the claim of drivers against the operator taxicabs.
 X was recruited by Sure Recruit Development Co. as a
domestic helper in Singapore for 24 months. Her contract  Last month, B, an employee of the National Housing
was duly approved by the POEA. After working for three Authority, filed a complaint for illegal dismissal against
months, however, X escaped from her employer and NHA before the Civil Service Commission. His complaint
sought refuge at the Philippines embassy which eventually was dismissed by the CSC on the ground of lack of
repatriated her to the Philippines. jurisdiction. Is the ruling correct?

 Is X still entitled to payment of wages and other - NO, the ruling is not correct. In the case of Juco v.
benefits stipulated in the contract? If so, how much?
NLRC, the Supreme Court held that the NHA is now
Explain.
within the jurisdiction of the Department of Labor and
Employment, it being a Government Owned and
- It depends. If the worker escaped her employer based
Controlled Corporation without an original charter.
on grounds which subjected her to inhumane treatment Furthermore, the court ruled that the workers or
by the employer, violence, failure of the employer to employees of the NHA undoubtedly have the right to
adhere to the terms and conditions of the employment form labor unions or employee’s organization and that
contract, or any act similar, then the employee is there is no impediment to the holding of a certification
entitled to the benefits she would have gotten if she was election among them as they are covered by the Labor
unjustly terminated. She would then be entitled to the Code.
full reimbursement fee plus 12% interest per annum,  Based on jurisprudence, enumerate the classifications of
salaries for the unexpired portion of the contract, and land that are excluded from the coverage of the
damages. However, if she left her employer on her own Comprehensive Agrarian Reform Law.
volition, she would only be entitled to the wages
pertaining to her worked portion. - Under Sec. 10 of the CARL, the following shall be
deemed excluded from the coverage of the law:
 Under the law, who is/are liable for the claims of X?
1. Lands actually, directly, and exclusively used for:
Explain.
a. Parks
- The employer is liable for the claims of X. X may also b. Wildlife
c. Forest reserves
claim from the agency since they are solidarily liable. d. Reforestation
Sec10 RA8042 provides “The liability of the e. Fish sanctuaries and breeding grounds
principal/employer and the recruitment/placement f. Watersheds
agency for any and all claims under this section shall be g. Mangroves
joint and several. These provisions shall be
incorporated in the contract for overseas employment 2. Lands actually, directly, and exclusively used, and
found to be necessary for:
and shall be a condition precedent for its approval.”
a. National defense
b. School sites and campuses
 Are taxi drivers on the “boundary system” considered
c. Church sites and convents appurtenant thereto
employees of taxi operators? Explain.
d. Mosque sites and Islamic centers appurtenant
- In the case of National Labor Union v. Dinglasan, the thereto
Supreme Court held that the relationship between e. Communal burial grounds
jeepney owners/operators on one hand and jeepney f. Penal colonies and penal farms
drivers on the other under the boundary system is that g. Government colonies and penal farms actually
of employer-employee and not of lessor-lessee. In said worked by the inmates
case it was explained that in the lease of chattels the h. All lands with 18% slope and over (obtained
lessor loses complete control over the chattel leased by 100m run and an 18m rise except those
although the lessee cannot be reckless in the use already developed)
thereof, otherwise he would be responsible for the
damages to the lessor. In the case of jeepney 3. In Luz Farms v. Secretary of Agrarian Reform,
owners/operators and jeepney drivers, the former agricultural lands devoted for commercial

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
livestock, poultry and swine raising are deemed of the land in dispute. The private respondent, instead
excluded from the law. of receiving payment of rentals or sharing in the
produce of the land, paid the petitioner lump sums for
4. In Natalia Realty v. DAR, subdivision lands already specific kinds of work on the subject lot or gave him
devoted to residential and industrial uses are vales, or advance payment of his wages as laborer
deemed excluded. thereon.

5. In Alita v. CA, homesteads are exempted from the  What action, if any, may D file against C and where
coverage of Agrarian Reform. should it be filed?

-
6. Section 3 of R.A. 9007, amending Section 4 of
R.A. 6657 states that landholdings of landowners
 F, single and living – in with G (legally separated from his
with a total of 5 hectares an below shall not be wife), is pregnant with her fifth child. She applied for
covered for acquisition and distribution to qualified maternity leave, but her employer refused the application
beneficiaries. because she is not married. Decide.

 C was employed by D and their parents as their laborers - It depends. If the woman is working in a private sector,
on a 25,000 square meter farmland. They executed a
written contract which stipulated that as a hired laborer,
there is no need for the woman to be married.
C would receive a daily wage of P200. Three years later, C
was informed of the termination of his services and was - The following are the qualifications for Entitlement of
asked to vacate the property. C refused and continued Maternity Benefit:
working on the land.
1. The female member should be a SSS Member
 What is the nature of the contract between C and D? 2. Employed at the time of the delivery, miscarriage
or abortion
- It is an employer-farm worker relationship. As held by 3. She must have given the required notification to
the Court in the case of Gelos v CA: the SSS thru her employer
4. Her employer must have paid at least 3months of
“A tenant is defined under Section 5(a) of Republic Act No.
maternity contributions within 12months period
1199 as a person who himself and with the aid available
from within his immediate farm household cultivates the immediately before her semester of contingency
land belonging to or possessed by another, with the latter's
consent, for purposes of production, sharing the produce - However, if she is working in a public sector, only
with the landholder under the share tenancy system, or married women employees who have rendered an
paying to the landholder a price-certain or ascertainable in aggregate of 2 years or more of service shall be
produce or in money or both, under the leasehold tenancy
entitled to full maternity leave benefits according to
system.
section 12, Rule 16 of the Omnibus Civil Service Rules.
- For this relationship to exist, it is necessary that:
 The projected bonus for the employees was 30% of their
monthly compensation. Unfortunately, due to the slump in
1. the parties are the landowner and the tenant;
the business, the president unilaterally reduced the bonus
2. the subject is agricultural land; to 5% of their compensation.
3. there is consent;
4. the purpose is agricultural production;  As counsel for the company, explain the legal
5. there is personal cultivation; and justification for the president’s action
6. there is sharing of harvest or payment of rental. In
the absence of any of these requisites, an occupant - As the counsel of the president, the actions done by the
of a parcel of land, or a cultivator thereof, or president is not incorrect. Bonus is the amount granted
planter thereon, cannot qualify as a de jure tenant.
and paid to an employee for his industry and loyalty
- On the other hand, the indications of an employer- which contributed to the success of the employer’s
employee relationship are: business and made possible the realization of the
profits.
1. the selection and engagement of the employee;
2. the payment of wages; - Generally, bonus is not demandable as a matter of right.
3. the power of dismissal; and It is a management prerogative, given in addition to
4. the power to control the employee's conduct -
although the latter is the most important element. what is ordinarily received by or strictly due to the
recipient.
- Stipulations clearly indicate that the parties did not
enter into a tenancy agreement but only a contract of
employment. The agreement is a lease of services, not

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
- The employees cannot demand from the President their
30% bonus because it is under the discretion of the - The period of overtime service in a workday for a full-
President as to whether or not give their bonus and as to time employee shall include those rendered beyond the
how much. In addition, there has been a slump in the prescribed work hours in a shift of 8 hours or more,
business. bonus is usually given because there has been such as in government hospitals, on scheduled
workdays, and those rendered on rest days or scheduled
positive outcomes done by the employees.
days off, holidays, and special non-working days.
 As counsel for the employees, explain the legal  During his employment as Chief Security Officer of
grounds for your opposition to the president’s action Manila Diamond Hotel, Z was provided with meals, water,
electricity and lodging. Are these facilities?
- As the counsel of the employees, the employees has a
right to demand the projected bonus of 30%. - No. The meals, water, electricity and lodging are not
facilities. They are supplements.
- While it is true that generally bonus is not demandable
- Facilities are those items of expense necessary for the
as a matter of right and it is a management prerogative,
laborer and his family's existence and subsistence.
given in addition to what is ordinarily received by or These items are for the benefit of the employee and his
strictly due to the recipient, the employees can demand family. Supplements, on the other hand, are items
such if it was promised to be given without conditions which constitute extra remuneration or benefits given to
imposed for its payment in which case it is deemed as or received by the laborers over and above their
wage, or when it has ripened to practice. ordinary earnings and wages. These items are over and
above their compensation because they are beneficial to
the employer.
- The prohibition for non-diminution of benefits will
come into play. The rule is settled that any benefit and - In this case, the meals, water, electricity and lodging
supplement being enjoyed by the employees cannot be are deemed for the convenience of the employer
reduced, diminished, discontinued or eliminated by the because these items are necessary during Z’s
employer. The principle of non-diminution of benefits employment as Chief Security Officer of Manila
is founded on the constitutional mandate to protect the Diamond Hotel.
rights of workers and to promote their welfare and to
Note: The criterion in making a distinction between a
afford labor full protection. (EASTERN
supplement aNd a facility does not lie in the kind but in its
TELECOMMUNICATIONS PHILIPPINES, INC., vs. purpose.
EASTERN TELECOMS EMPLOYEES UNION)
 N, a building contractor, entered into a contract, with
 X, a nurse employed by the Ospital ng Maynila, works for XYZ Insurance Company, for the construction of the
8 hours a day, 6 days a week. Is she entitled to overtime latter’s new 5-storey building. In connection with the
pay? aforesaid contract, N hired carpenters, masons and
laborers.
- Yes. X, who is a public health worker, is entitled to
overtime pay. Being a government employee, the rules  What are the factors in determining whether XYZ
governing compensation for overtime work rendered Insurance Company may be considered an “indirect
employee” of workers of N?
are found in RA 7305 (The Magna Carta of Public
Health Workers).
- The factors in determining whether XYZ Insurance
Company is the indirect employee of N’s workers are
- “Sec. 15. Normal Hours of Work. The normal work of as follows:
any public health worker shall not exceed eight (8)
hours a day or 40 hours a week.” 1. The contractor must be registered in accordance
with the rules and carries a distinct and
- Hours worked shall also include all the time during independent business and undertakes to perform a
which a public health worker is required to be on active job, work, or service on its own responsibility,
duty or to be at a prescribed workplace, and all the time according to its own manner and method, and free
during which a public health worker is suffered or from control and direction of the principal in all
permitted to work. And, matters connected with the performance of the
work except as to the results thereof.
- “Sec. 16. Overtime Work. Where the exigencies of the 2. The contractor has a substantial capital and/or
service so require, any public health worker may be investment, and
required to render service beyond the normal eight 3. The Service Agreement ensures compliance with
hours a day. In such a case the workers shall be paid an all the rights and benefits under Labor Laws.
additional compensation in accordance with existing
laws and prevailing practices.”

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
 May XYZ Insurance Company be held liable for half (1/2) month salary for every year of service, a
unpaid wages and other monetary claim of N’s fraction of at least six (6) months being considered as
workers? Explain. one whole year.

- Yes. XYZ Insurance Company may be held solidarily - For the purpose of determining the minimum retirement
liable with the contractor in the event the latter fails to pay due an employee under the Implementing Rules of
pay the employees’ wages and for violation of labor RA 7641, the term “one-half month salary” shall
standard laws. However, the liability does not extend to include fifteen(15) days salary of the employee based
the payment of back wages or separation pay of on his latest salary rate.
employees who are illegally dismissed.
- Unless the parties provide for broader inclusions, the
 PO3 Tom Cruz, member of QC Police, was shot to death term one-half (1/2) month salary shall mean fifteen (15)
by Brgy. Chairman in front of Manila City Hall. The fatal
days plus one-twelfth (1/12) of the 13th month pay and
shooting stemmed from a staring incident a day earlier
between the sons of PO3 Tom Cruz and the Brgy.
the cash equivalent of not more than five (5) days of
Chairman. Although he was supposed to be on duty at service incentive leaves.
Camp Karingal in QC, PO3 Tom Cruz was accompanying
his son to the Office of Mayor Lim for interview and  The DOLE Regional Director does not have
proper disposition. Is the death of PO3 Tom Cruz work- jurisdiction over money claims arising from
connected and therefore, compensable? Why. employer-employee relationship if such claims exceed
P5,000.
- Yes. This is pursuant to the ruling in the case of ECC v
CA and Alvaran. At the time of Alvaran’s death, he - It depends on whether the case involves the visitorial
was a member of the Mandaluyong Police Station but and enforcement power of the Secretary of Labor or
assigned to the Pasig Provincial Jail. Findings showed any of his duly authorized representative or the
that at the time of the incident, Alvaran was with his Adjudicatory power of the regional director or any
son because the latter was involved in a stabbing authorized hearing officer of DOLE. The law fixes no
incident. The Court rules that his death was maximum monetary amount for the exercise of
compensable because while it is true that, enforcement power under article 128, whereas under
"geographically" speaking, Alvaran was not actually at Article 129, the amount of money claim per claimant
his assigned post at the Pasig Provincial Jail when he should not exceed P5,000.00.
was attacked and killed, it could not also be denied that
in bringing his son - as a suspect in a case to the police
station for questioning to shed light on a stabbing
incident, he was not merely acting as father but as a
peace officer.
 J, a project worker, was being assigned by his employer,
K Builders Corporation, to Aparri, Cagayan. J refused to
- The facts of the case at hand fall squarely to those of comply with the transfer claiming that in effect, he was
the aforementioned case. By bringing his son to the being constructively dismissed because it would take him
Manila City Hall for disposition, it could be said that away from his family and his usual work assignments in
Tom Cruz was not merely acting as a father but also as Metro Manila. The Labor Arbiter found that there was no
a police officer at the time of the incident. The 24-hour constructive dismissal but ordered the payment of
duty doctrine is applicable. separation pay due to strained relations between the
parties, plus attorney’s fees equivalent to 20% of the value
of J’s separation pay. Is the award of attorney’s fees
- Hence, his death is work-related and therefore valid? Explain your answer.
compensable.
- Article 111 of the Labor Code, as amended, governs the
 State whether you agree or disagree with the following grant of attorney’s fees in labor cases. It provides:
statements. Explain your answer for each answer.
Art. 111
 The Labor Code provisions on retirement pay had
expanded the term “one-half (1/2) month salary”
because it means 15 days’ pay plus a full 13th month a. In cases of unlawful withholding of wages, the
pay. culpable party may be assessed attorney’s fees
equivalent to ten percent of the amount of wages
- Disagree. In the absence of a retirement plan or recovered.
agreement providing for retirement benefits of b. It shall be unlawful for any person to demand or
employees in the establishment, an employee upon accept, in any judicial or administrative
reaching the age of sixty (60) years or more, but not proceedings for the recovery of wages, attorney’s
beyond sixty-five (65) years which is declared the fees which exceed ten percent of the amount of
compulsory retirement age, who has served at least five wages recovered.
(5) years in the said establishment, may retire and shall Section 8, Rule VIII, Book III of its Implementing
be entitled to retirement pay equivalent to at least one- Rules also provides:
Attorney’s fees in any judicial or administrative

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 LABOR STANDARDS
Atty. Peter Joey B. Usita
proceedings for the recovery of wages shall not
exceed 10% of the amount awarded. The fees may
be deducted from the total amount due the winning
party.

- Jurisprudence expands the grant of attorney’s fees to

also include instances where the employee may be
granted the award of attorney’s fees due to the
employee being constrained to litigate with a counsel,
whether or not the employer has acted in malice or bad
faith.

- The present case does not contemplate the recovery of

wages, but the allegedly constructive dismissal of J by
his employer. Constructive dismissal is defined as an
employer’s act amounting to dismissal but made to
appear as if it were not – a dismissal in disguise. In
most cases of constructive dismissal, the employee is
allowed to continue to work, but is simply reassigned,
or demoted, or his pay diminished without a valid
reason to do so. The Supreme Court ruled in Tan v.
NLRC that the transfer of an employee from one area of
operation to another is a management prerogative and is
not constitutive of constructive dismissal, when the
transfer is based on sound business judgment,
unattended by a demotion in rank or a diminution of
pay or bad faith. Therefore, the award of attorney’s fees
was not valid in this case.

SAN BEDA COLLEGE OF LAW - MENDIOLA 22