LABOR LAW 1 Labor relations law: which defines the status, rights and

1st Semester, AY 2008-2009 duties and the institutional mechanisms that govern the
Prof. E. (Leo) D. Battad individual and collective interactions of employers,
College of Law employees or their representatives.
University of the Philippines
SOCIAL LEGISLATION VS. LABOR LAWS

SUGGESTED TEXTBOOK: Social legislation: provides particular kinds of protection or

benefits to society or segments thereof in furtherance of
 CA Azucena, The Labor Code with social justice.
Comments and Cases (Latest Edition)
Labor laws are necessarily social legislation. But to
REFERENCES: differentiate, labor laws directly affect employment while
social legislation governs effects of employment.
 Samson S. Alcantara, and Samson B.
Alcantara Jr., Philippine Labor and Social Legislation Labor laws are social legislation but not all social legislation
Annotated are labor laws.
 1987 Philippine Constitution
 The Labor Code of the Philippines and
its Implementing Rules & 2. Social Justice, Const., Art. II, Sec. 10; Art. XIII,
Regulations Sec. 1-3
 Pertinent International Human Rights Instruments
and ILO Conventions, Recommendations and Labor-related Section 10. The State shall promote social justice in
laws all phases of national development.
 Assigned Readings
Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance
I. INTRODUCTION TO LABOR LAW the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
A. Labor as a Concept remove cultural inequities by equitably diffusing
wealth and political power for the common good.
1. General Sense
Labor physical toil although it does not necessarily exclude
the application of skill, thus there is skilled and unskilled To this end, the State shall regulate the acquisition,
labor. ownership, use, and disposition of property and its
increments.
Skill familiar knowledge of any art or sciencem united with
radiness and dexterity in execution or performance or in the Section 2. The promotion of social justice shall
application of the art or science to practical purposes. include the commitment to create economic
opportunities based on freedom of initiative and self-
Work is broader than labor as work covers all forms of reliance.
physical or mental exertion, or both combined, for the
attainment of some object other than recreation or ARTICLE XIII – LABOR
amusement per se. Section 3. The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment and
2. Technical sense
equality of employment opportunities for all.
Worker broader than employee as workers may refer to It shall guarantee the rights of all workers to self-
self-employed people, and those working in the service and organization, collective bargaining and negotiations,
under the control of another, regardless of rank, title, or and peaceful concerted activities, including the right
nature of work. to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and
Employee salaried person working for another who a living wage. They shall also participate in policy and
controls or supervises the means, manner or method of decision-making processes affecting their rights and
doing the work. benefits as may be provided by law.

The State shall promote the principle of shared

B. Labor Law responsibility between workers and employers and
the preferential use of voluntary modes in settling
1. Definition
disputes, including conciliation, and shall enforce their
Labor legislaton  labor standards + labor relations
mutual compliance therewith to foster industrial
peace.
a. consists of statutes, regulations and jurisprudence
b. governing the relations between capital and labor The State shall regulate the relations between
c. by providing for certain employment standards workers and employers, recognizing the right of labor
and a legal framework to its just share in the fruits of production and the right
d. for negotiating, adjusting and administering those of enterprises to reasonable returns to investments,
standards and other incidents of employment. and to expansion and growth.

Labor standards: which sets out the minimum terms, The aim and the reason and, therefore, the justification of
conditions, and benefits of employment that employers must labor laws is social justice.
provide or comply with and to which employees are entitled
as a matter of legal right. Social Justice: JP Laurel in Calalang neither communism,
nor despotism, nor atomism not anarchy but the
 humanization of laws and the equalization of social and Social Justice: JP Laurel in Calalang neither communism,
economic forces by the State so that justice in its rational nor despotism, nor atomism not anarchy but the
and objectively secular conception may at least be humanization of laws and the equalization of social and
approximated. economic forces by the State so that justice in its rational
and objectively secular conception may at least be
The promotion of the welfare of all the people, the adoption approximated.
by the Government of measures calculated to insure
economic stability of all the component elements of society Social justice is the promotion of the welfare of all the
through the maintenance of proper economic and social people, the adoption by the Government of measures
equilibrium in the interrelations of the members of the calculated to insure economic stability of all the component
community, constitutionality, through the adoption of elements of society through the maintenance of proper
measures legally justifiable, or extra-constitutionally, through economic and social equilibrium in the interrelations of the
the exercise of powers underlying the existence of all members of the community, constitutionality, through the
governments, on the time-honored principle of salus populi adoption of measures legally justifiable, or extra-
est suprema lex. constitutionally, through the exercise of powers underlying
the existence of all governments, on the time-honored
Labor is the primary social economic force, thus the State principle of salus populi est suprema lex.
shall protect the rights of workers and promote their
welfare.  Manila Electric Co. v. Sec. of Labor, 337
SCRA 90 (2000)
Constitutional Rights and Mandates
When will the CBA take effect?
The State shall afford full protection to labor and this is
found in the 1935, 1973, and 1987 Consti. The State affirms <-o-------------------------------I x--------------------------
labor as a primary social economic force thus, it shall protect CBA expiration 6 months
the right of the workers and promote their welfare.
Secretary of Labor may determine the date of retroactivity
Basic rights of workers guaranteed by the consti: as part of his discretionary powers. But this discretionary
power shall only be exercised only when jurisdiction has
1. Right to organize themselves been vested.
2. Conduct collective bargaining or
negotiation with management Assailed Resolution:
3. Engage in peaceful concerted activities, Article 263(g) gives the Secretary jurisdiction. CBA
including to strike in accordance with negotiated within six months after the expiration of the
law existing CBA retroacts to the day immediately following such
4. Enjoy security of tenure date and if agreed thereafter, the effectivity depends on the
5. Work under humane conditions agreement of the parties. But the law is silent as to the
6. Receive a living wage retroactivity of a CBA arbitral award or that granted not by
7. Participate in policy and decision-making virtue of the mutual agreement of the parties but by
processes affecting their rights and intervention of the government. Despite the silence of the
benefits as may be provided by law. law, the Court rules herein that CBA arbitral awards granted
(Sec. 3, XIII). after six months from the expiration of the last CBA shall
Other provisions in the Consti: retroact to such time agreed upon by both employer and the
employees or their union. Absent such an agreement as to
1) Right to form unions, associations, societies for retroactivity, the award shall retroact to the first day of the
purposes not contrary to law. six-month period following the expiration of the last day of
2) Right to self organization shall not be denied to the CBA should there be one. IN the absence of a CBA, the
government employees. Sec’s determination of the date of retroactivity as part of his
3) Regular farmworkers shall have the right to own discretionary powers over arbitral awards shall control.
directly or collectively the lands they till.
4) The State shall by law and for common good, Held: Where an arbitral award is granted beyond six months
undertake in cooperation with the private sector a after the expiration of the existing CBA, and there is no
continuing program of urban land reform and agreement between the parties as to the date of effectivity
housing. thereof, the arbitral award shall retroact to the first day after
5) The State shall protect working women by the six-month period following the expiration of the last day
providing safe and healthful working conditions of the CBA. But instead of Dec 1, 1995 to Nov 30 1997 (CBA
taking into account their maternal functions. had a 2-year applicability period), the Court modified it to
6) Labor is entitled to seats allotted to party-list June 1, 1996 to May 31, 1998.
representatives
7) The State shall promote industrialization and full On social justice: “[T]his Court cannot ignore the
employment based on sound agricultural enormous cost that petitioner will have to bear as a
development and agrarian reform. consequence of the fill retroaction of the arbitral award to
8) Congress shall create an agency to promote the the date of the expiry of the CBA and the inevitable effect
viability and growth of cooperatives. that it would have on the national economy. On the other
9) The Govt shall increase salary scales of the other hand, under the policy of social justice, the law bends over
officials and employees of the National backward to accommodate the interests of the working class
Government. on the humane justification that those with less privilege in
10) Career civil service employees shall be entitled to life should have more in law. Balancing these two
appropriate separation pay and to retirement and contrasting interests, this Court turned to the dictates of
other benefits under existing laws. fairness and equitable justice and thus arrived at a formula
that would address the concerns of both sides. Thus, Arbitral
award must retroact to the first day AFTER the six-month
a. Definition/Balancing of Interest period following the last day of the CBA.

 Calalang v. Williams, 70 Phil. 726 (1940) Azucena:

Duman / Labor I / Prof. Battad / Page 2

 The Consitution has not overlooked the rights of capital. It
provides that, “the State recognizes the indispensable role of The rule embodied in the Labor Code is that a person
the private sector, encourages private enterprise, and dismissed for cause as defined therein is not entitled to
provides incentives to needed investments (Art. II, Sec. 20). separation pay. The cases abovecited (where different cases
were cited proving that some companies still allowed
While labor is entitled to a just share in the fruits of separation pay despite the degree of the ground upon which
production, the enterprise has an equally important right not the employees were being dismissed for) constitute the
only to reasonable returns on investment but also to exception, based upon considerations of equity. Equity has
expansion and growth. been defined as justice outside law, being ethical rather than
jural and belonging to the sphere of morals than of law. It is
Shared Responsibility between workers and employers  grounded on the precepts of conscience and not on any
Preferential use of voluntary modes of settling disputes. sanction of positive law. Hence, it cannot prevail against the
expressed provision of the labor laws allowing dismissal of
a. Foundation: Police Power and State Protection employees for cause and without any provision for
separation pay.
While social justice is the raison d’etre of labor laws, their Separation pay shall be allowed as a measure of social
basis or foundation is the police power of the State. justice only in those instances where the employee is calidly
dismissed for causes other than serious misconduct or those
a. State legislatures may enact laws for the reflecting on his moral character. Where the reason for the
protection of the safety and health of employees. valid dismissal is, for example, habitual intoxication or an
b. Right of every person to pursue a business, offense involving moral turpitude, life theft or illicit sexual
occupation, or profession is subject to the relations with a fellow worker, the employer may not be
paramount right of the government as a part of its required to give the dismissed employee separation pay or
police power to impose such restrictions and financial assistance, or whatever other name it is called on
regulations as the protection of the public may the ground of social justice.
require.
The policy of social justice is not intended to countenance
Legal Classification: (discussed in light of the suspension of wrongdoing simply because it is committed by the
deployment of women) underprivileged. At best it may mitigate the penalty but it
certainly will not condone the offense. Compassion for the
a. such classification rest on substantial distinctions poor is an imperative of every humane society but only
b. they are germane to the purpose of the law when the recipient is not a rascal claiming an underserved
c. they are not confined to existing conditions privilege. Social justice cannot be permitted to be refuge of
d. they apply equally to all members of the same scoundrels any more than can equity be an impediment to
class the punishment of the guilty. Those who invoke social
justive may do so only if their hands are clean and their
b. Foundation: Police Power and State Protection motives blameless and not simply because they happen to
be poor.
 CMS Estate, Inc. v. Social Security
System, 132 SCRA 108 (1984)  Agabon v. NLRC, 442 SCRA 573 (2004)

The case of two businesses, one was in real estate and the
other was in the logging business. One owner was Employees were claiming illegal dismissal. Employer was
demanding for a refund from SSS and it refused to subscribe asserting that there was abandonment.
the employees of the 2nd business to SSS because the
business has not been in operation for 2 years (which was Abandonment is the deliberate and unjustified refusal of an
the requirement of the law) yet. employee to resume his employment. It is a form of neglect
of duty, hence, a just cause for termination of employment
The Social Security Law was enacted pursuant to the policy by the employer. For a valid finding of abandonment: (1)
of the government “to develop, establish gradually and failure to report for work or absence without valid or
perfect a social security system which shall be suitable to the justifiable reason (2) clear intention to server employer-
needs of the people throughout the Philippines, and shall employee relationship with the second as the more
provide protection against the hazards of disability, sickness, determinative factor which is manifested by overt acts from
old age and death. It is thus clear that said enactment which it may be deduced that the employees has no more
implements the general welfare mandate of the intention to work.
Constitution and constitutes a legitimate exercise of
the police power of the State. Wenphil or Belated Due Process Rule: where the
employer had a valid reason to dismiss an employee but did
It is the intention of the law to cover as many persons as not follow the due process requirement, the dismissal may
possible so as to promote the constitutional objective of be upheld but the employer will be penalized to pay an
social justice. indemnity to the employee.

Compulsory coverage of the employer shall take effect on But this was re-examined in Serrano case wherein the
the first day of his operation, and that of the employee on Court required that the employer pay the full backwages
the date of his employment (RA 1161 as amended by RA from the time of dismissal until the time the Court finds the
2658). The two year prescription of the prior law must be dismissal was for a just or authorized cause. It was because
considered prevailed over by the later law and moreover, the of a significant number of cases involving dismissals without
legislative intent must be given effect. requisite notices.

c. Limits of Use In Agabon, the Court abandoned Serrano and followed

Wenphil only that the sanctions imposed on the employer
 PLDT v. NLRC, 164 SCRA 671 (1988) must be stiffer than those in Wenphil.

PLDT employee promised to facilitate the approval of the An employee who is clearly guilty of conduct violative of
complainants’ applications for telephone installation and then Article 282 should not be protected by the Social Justice
received from them an amount of money in consideration of Clause of the Constitution. Social justice, as the terms
her promise. suggests, should be used only to correct an injustice.
Duman / Labor I / Prof. Battad / Page 3
 social services, promote full employment, a rising
JP Laurel, in Calalang: social justice must be founded on the standard of living, and an improved quality of life for
recognition of the necessity of interdependence among all.
diverse units of a society and of the protection that should
be equally and evenly extended to all groups as a combined Section 10. The State shall promote social justice in
forc e in our social and economic life, consistent with the all phases of national development.
fundamental and paramount objective of the state of
promoting the health, comfort and quiet of all person, and of
bringing about the greatest good to the greatest
Section 13. The State recognizes the vital role of the
number. youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
Social justice is not based on rigid formulas set in stone. It well-being. It shall inculcate in the youth patriotism
has to allow for changing times and circumstances. and nationalism, and encourage their involvement in
public and civic affairs.

5. Legal Basis Section 14. The State recognizes the role of women
in nation-building, and shall ensure the fundamental
a. International Conventions equality before the law of women and men.
 International School Alliance of Educators v. Quisumbing, Section 18. The State affirms labor as a primary
333 SCRA 13 (2000) social economic force. It shall protect the rights of
workers and promote their welfare.
Foreigner teachers were given more benefits than the local
teachers.
Art. XIII
International law, which springs from general principle of
law, likewise proscribes discrimination. General principles of Section 1. The Congress shall give highest priority to
law include principles of equity i.e the general principles of the enactment of measures that protect and enhance
fairness and justice, based on the test of what is reasonable. the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
The following embody the general principle against remove cultural inequities by equitably diffusing
discrimination, the very antithesis of fairness and justice. wealth and political power for the common good.

 Universal Declaration of Human Rights Section 3. The State shall afford full protection to
 The International Covenant on labor, local and overseas, organized and
Economic, Social, and Cultural Rights unorganized, and promote full employment and
 The International Convention on the
equality of employment opportunities for all.
Elimination of All Forms of Racial
It shall guarantee the rights of all workers to self-
Discrimination
 The Convention against Discrimination organization, collective bargaining and negotiations,
in Education and peaceful concerted activities, including the right
 The Convention Concerning to strike in accordance with law. They shall be entitled
Discrimination in Respect of to security of tenure, humane conditions of work, and
Employment and Occupation a living wage. They shall also participate in policy and
decision-making processes affecting their rights and
Mentioned in the case: benefits as may be provided by law.
Bargaining Unit: is a group of employees of a given
employer, comprised of all or less than all of the entire body The State shall promote the principle of shared
of employees, consistent with equity to the employer responsibility between workers and employers and
indicate to be the best suited to serve the reciprocal rights the preferential use of voluntary modes in settling
and duties of the parties under the collective bargaining disputes, including conciliation, and shall enforce their
provisions of the law.
mutual compliance therewith to foster industrial
peace.
The factors determining the appropriate collective bargaining
unit are: (1) the will of the employees (2) affinity and unity
of the employees’ interest, such as substantial similarity of The State shall regulate the relations between
work and duties, or similarity of compensation and working workers and employers, recognizing the right of labor
conditions (3) prior collective bargaining history (4) similarity to its just share in the fruits of production and the right
of employment status. of enterprises to reasonable returns to investments,
and to expansion and growth.

b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 13, 14, 18; Art. Section 14. The State shall protect working women
XIII, Secs. 1, 3, 14 by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their
ART. II welfare and enable them to realize their full potential
in the service of the nation.
Section 5. The maintenance of peace and order, the
protection of life, liberty, and property, and promotion See also: 1935 Const., Art. XIV, Sec., 6; 1973 Const., Art.
of the general welfare are essential for the enjoyment II, Sec. 9
by all the people of the blessings of democracy.
1935 Constitution, Art. XIV, Sec. 6
Section 9. The State shall promote a just and
dynamic social order that will ensure the prosperity Section 6. The State shall afford protection to labor,
and independence of the nation and free the people especially to working women, and minors, and shall
from poverty through policies that provide adequate regulate the relations between the landowner and
Duman / Labor I / Prof. Battad / Page 4
 tenant, and between labor and capital in industry and
in agriculture. The State may provide for compulsory The disputed provision of the CBA is clear and unambiguous.
arbitration. The terms of the CBA is not susceptible to any other
interpretation. Hence the literal meaning of “free meals after
1973 Const. Art. II, Sec. 9 three (3) hours of overtime work” shall prevail, which is
simply that an employee shall be entitled to a free meal if he
has rendered exactly, or no less than, three hours of
Section 9. The State shall afford protection to labor,
overtime work, not “after more than” or “in excess of” three
promote full employment and equality in employment,
hours overtime work.
ensure equal work opportunities regardless of sex,
race, or creed, and regulate the relation between Found in the case: Management prerogative: The exercise of
workers and employers. The State shall assure the management prerogative is not unlimited. It is subject to the
rights of workers to self-organization, collective limitations found in law, a collective bargaining agreement or
bargaining, security of tenure, and just and humane the general principles of fair play and justice. This situation
conditions of work. The State may provide for constitutes one of the limitations. The CBA is the norm of
compulsory arbitration. conduct between the petitioner and private respondent and
compliance therewith is mandated by the express policy of
the law.
c. Labor Code (LC) and Omnibus Rules Implementing the Labor
Code d. Past Practices

d. New Civil Code of the Philippines (NCC), Arts. 19, 21, 1700-  Davao Fruits Corporation v. Associated
1701 labor Union, 225 SCRA 562 (1993)

Art. 19. Every person must, in the exercise of his Issue: WON in the computation of the 13th month pay given
rights and in the performance of his duties, act with by employers to their employees under PD 851, payments
justice, give everyone his due, and observe honesty for sick, vacation and maternity leaves, premiums for work
and good faith. done rest days and special holidays and pay for regular
holidays may be excluded in the computation and payment
thereof, regardless of long-standing company practice.
Art. 21. Any person who wilfully causes loss or injury
to another in a manner that is contrary to morals,
A company practice favorable to the employees had
good customs or public policy shall compensate the indeed been established and the payments made
latter for the damage. pursuant thereto, ripened into benefits enjoyed by
them. And any benefit and supplement being enjoyed
Art. 1700. The relations between capital and labor are by the employees cannot be reduced, diminished,
not merely contractual. They are so impressed with discontinued or eliminated by the employer, by virtue
public interest that labor contracts must yield to the of Sec 10 of the Rules and Regulations Implementing
common good. Therefore, such contracts are subject PD 851 and Art 100 of the Labor Code which prohibit
to the special laws on labor unions, collective the diminution or elimination b the employer of the
bargaining, strikes and lockouts, closed shop, wages, employees’ existing benefits.
working conditions, hours of labor and similar
subjects. The considerable length of time the questioned items had
been included by petitioner indicates a unilateral and
Art. 1701. Neither capital nor labor shall act voluntary act on its part, sufficient in itself to negate any
claim of mistake.
oppressively against the other, or impair the interest
or convenience of the public.
 Samahang Manggagawa sa Top Form Manufacturing-United
Workers of the Phil. (SMTFM-UWP v. NLRC, 295 SCRA 171
(1998)
6. Sources of Law
The case wherein the employer was charged as having
a. Labor Code and Related Special Legislation (Implementing
committed an unfair labor practice by bargaining in bad faith
Rules)
and discriminating against in employees by promising at a
collective bargaining conference to implement any
b. Contract – Art. 1305-1306, New Civil Code
government-mandated wage increases on an across-the-
board basis.
Art. 1305. A contract is a meeting of minds between
two persons whereby one binds himself, with respect Past promises which were written in the minutes of the
to the other, to give something or to render some meeting. The proposal was never embodied in the CBA,
service. (1254a) thus, the promise remained just that, a promise, the
implementation which cannot be validly demanded under the
Art. 1306. The contracting parties may establish such law.
stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary The law provides remedies to the petitioner union to compel
to law, morals, good customs, public order, or public priv resp to incorporate this specific economic proposal in
policy. (1255a) the CBA, which they did not do.

c. Collective Bargaining Agreement The CBA is the law between the contracting parties—the
collective bargaining representative and the employer-
 DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112 company. Compliance with a CBA is mandated by the
(2003) expressed policy to give protection to labor. In the same
vein, CBA provision should be “construed liberally rather
Interpretation of the free meals provision in the CBA. Is it than narrowly and technically, and the courts must place a
after the employee has worked only after more than three practical and realistic construction upon it, giving due
hours of work or those who have rendered exactly three consideration to the context in which it is negotiated and
hours of overtime work? purpose which it is intended to serve. This is founded on the
Duman / Labor I / Prof. Battad / Page 5
 dictum that a CBA is not an ordinary contract but one irregularities in approving several DAUD/BP in favor of one
impressed with public interest. It goes without saying, Maniwan.
however, that only provisions embodied in the CBA should
be so interpreted and complied with. The Bank’s SOP provides a restitution/forfeiture of benefits
provision.
No benefits or privileges previously enjoyed by petitioner
union and the other employees were withdrawn as a result It is well recognized that company policies and regulations
of the manner by which private resp implemented the wage are, unless shown to be grossly oppressive or contrary to
orders. law, generally binding, and valid on the parties and must be
complied with until finally revised or amended unilaterally or
preferably through negotiation or by competent authority.
Moreover, management has the prerogative to discipline its
employees and to impose appropriate penalties on erring
 American Wire and Cable Daily workers pursuant to company rules and regulations. With
rated Employees Union American Wire and Cable co., Inc., more reason should these truisms apply to the respondent,
457 SCRA 684 (2005) who, by reason of his position, was required to act
judiciously and to exercise his authority in harmony with
The company suddenly withdrew and denied certain benefits company policies.
and entitlements which the employees have long enjoyed
like service awards, 35% premium pay of an employee’s Business enterprises have a prerogative to discipline its
basic pay for work rendered during Holy Monday, Tuesday, employees and to impose appropriate penalties on erring
Wednesday, December 23, 26, 27, 28, and 29, Christmas workers pursuant to company rules and regulations which
Party and Promotional Increases. must be respected. The law, in protecting the rights of labor,
authorized neither oppression nor self-destruction of an
It is critical that a determination must be first made whether employer company which itself is possessed of rights that
the benefits/entitlements are in the nature of a bonus or must be entitled to recognition and respect.
not, and assuming they are so, whether they are
demandable and enforceable obligations. 7. Classification

Bonus: is an amount granted and paid to an employee for a. Labor Standards

his industry and loyalty which contributed to the success of
the employer’s business and made possible the realization of b. Labor Relations
profits. It is an act of generosity granted by an enlightened
employer to spur the employee to greater efforts for the c. Welfare Legislation
success of the business and realization of bigger profits. The
granting of a bonus is a management prerogative, II. LABOR CODE OF THE PHILIPPINES
something given in addition to what is ordinarily received by
or strictly due the recipient. Thus, a bonus is not a A. Brief History
demandable and enforceable obligation, except when it is
made part of the wage, salary or compensation of the B. General Provisions
employee.
1. 1. Decree Title, Art. 1
Issue: WON these bonuses can be considered part of the
wage or salary or compensation making them enforceable ARTICLE 1. Name of Decree. - This Decree shall
obligations. be known as the "Labor Code of the Philippines".

Held: No. For a bonus to be enforceable, it must have been 2. Effectivity, Art. 2
promised by the employer and expressly agreed upon by the ART. 2. Date of effectivity. - This Code shall take
parties or it must have had a fixed amount and had been a effect six (6) months after its promulgation.
long and regular practice on the part of the employer. 3. Policy Declaration, Art. 3
The benefits/entitlements in question were never subjects of ART. 3. Declaration of basic policy. - The State
any express agreement between the parties. They were
shall afford protection to labor, promote full
never incorporated in the CBA. As observed by the VA, the
employment, ensure equal work opportunities
records reveal that these benefits/entitlements have not
been subjects of any express agreement between the union regardless of sex, race or creed and regulate the
and the company, and have not yet been incorporated in the relations between workers and employers. The
CBA. State shall assure the rights of workers to self-
organization, collective bargaining, security of
Downtrend was clear in the service award amount and the tenure, and just and humane conditions of work.
parties’ venue were changed from paid venues to one which
was free of charge. 4. Construction in Favor of Labor, Art. 4

To be considered a “regular practice”, the giving of ART. 4. Construction in favor of labor. - All doubts
the bonus should have been done over a long period in the implementation and interpretation of the
of time, and must be shown to have been consistent provisions of this Code, including its
and deliberate. implementing rules and regulations, shall be
resolved in favor of labor.
e. Company Policies

 China Banking Corporation v.  Salinas Jr. v. NLRC, 319 SCRA 54

Borromeo, 440 SCRA 621 (2004) (1999)
The case of a manager who was consistently promoted
because of a highly satisfactory performance which landed
him at the AVP spot only to find out that he has done

Duman / Labor I / Prof. Battad / Page 6

 ART. 5. Rules and regulations. - The Department
of Labor and other government agencies charged
with the administration and enforcement of this
Code or any of its parts shall promulgate the
necessary implementing rules and regulations.
Such rules and regulations shall become
effective fifteen (15) days after announcement of
their adoption in newspapers of general
circulation.

 Reyes v. Court of Appeals, 409

SCRA 267 (2003)  Kapisanan ng mga Manggagawang
Pinagyakap v. NLRC, 152 SCRA 6 (1987)

 G&M Philippines, Inc. v. Romil 3. Technical Rules Not Binding, Art. 221
Cuambot, GR No. 162308, Nov. 22, 2006
ART. 221. Technical rules not binding and prior resort
to amicable settlement. - In any proceeding before the
Commission or any of the Labor Arbiters, the rules of
evidence prevailing in courts of law or equity shall not
be controlling and it is the spirit and intention of this
Code that the Commission and its members and the
Labor Arbiters shall use every and all reasonable
means to ascertain the facts in each case speedily
and objectively and without regard to technicalities of
law or procedure, all in the interest of due process. In
any proceeding before the Commission or any Labor
Arbiter, the parties may be represented by legal
counsel but it shall be the duty of the Chairman, any
Presiding Commissioner or Commissioner or any
Labor Arbiter to exercise complete control of the
proceedings at all stages.

 Huntington Steel Products, Inc. v. NLRC, 442 SCRA 551

(2004)

2. Rule Making Power, Art. 5

Duman / Labor I / Prof. Battad / Page 7
 4. Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;

6. Except claims for Employees Compensation, Social

Security, Medicare and maternity benefits, all other
claims arising from employer-employee relations,
including those of persons in domestic or household
service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.

ART. 128. Visitorial and enforcement power. - (a) The

Secretary of Labor and Employment or his duly
authorized representatives, including labor regulation
officers, shall have access to employer’s records and
4. Applicability, Art. 6, 276; Constitution, Art.
premises at any time of the day or night whenever
IX-B, Sec. 2(1)
work is being undertaken therein, and the right to
copy therefrom, to question any employee and
investigate any fact, condition or matter which may be
ART. 6. Applicability. - All rights and benefits granted necessary to determine violations or which may aid in
to workers under this Code shall, except as may the enforcement of this Code and of any labor law,
otherwise be provided herein, apply alike to all wage order or rules and regulations issued pursuant
workers, whether agricultural or non-agricultural. (As thereto.
amended by Presidential Decree No. 570-A,
November 1, 1974).
(b) Notwithstanding the provisions of Articles 129 and
217 of this Code to the contrary, and in cases where
ART. 276. Government employees. - The terms and the relationship of employer-employee still exists, the
conditions of employment of all government Secretary of Labor and Employment or his duly
employees, including employees of government- authorized representatives shall have the power to
owned and controlled corporations, shall be governed issue compliance orders to give effect to the labor
by the Civil Service Law, rules and regulations. Their standards provisions of this Code and other labor
salaries shall be standardized by the National legislation based on the findings of labor employment
Assembly as provided for in the New Constitution. and enforcement officers or industrial safety
However, there shall be no reduction of existing engineers made in the course of inspection. The
wages, benefits and other terms and conditions of Secretary or his duly authorized representatives shall
employment being enjoyed by them at the time of the issue writs of execution to the appropriate authority
adoption of this Code. for the enforcement of their orders, except in cases
where the employer contests the findings of the labor
Constitution, Art. IX-B, Sec. 2(1) employment and enforcement officer and raises
issues supported by documentary proofs which were
Section 2. (1) The civil service embraces all not considered in the course of inspection. (As
branches, subdivisions, instrumentalities, and amended by Republic Act No. 7730, June 2, 1994).
agencies of the Government, including government-
owned or controlled corporations with original An order issued by the duly authorized representative
charters. of the Secretary of Labor and Employment under this
Article may be appealed to the latter. In case said
5. Enforcement and Sanctions – Arts. 217 (a)
order involves a monetary award, an appeal by the
(2), (3), (4), (6); 128-129; 288-292; Consti., Art III, Secs.
11 and 16
employer may be perfected only upon the posting of a
cash or surety bond issued by a reputable bonding
ART. 217. Jurisdiction of the Labor Arbiters and the company duly accredited by the Secretary of Labor
Commission. - (a) Except as otherwise provided and Employment in the amount equivalent to the
under this Code, the Labor Arbiters shall have original monetary award in the order appealed from. (As
and exclusive jurisdiction to hear and decide, within amended by Republic Act No. 7730, June 2, 1994).
thirty (30) calendar days after the submission of the
case by the parties for decision without extension, (c) The Secretary of Labor and Employment may
even in the absence of stenographic notes, the likewise order stoppage of work or suspension of
following cases involving all workers, whether operations of any unit or department of an
agricultural or non-agricultural: establishment when non-compliance with the law or
implementing rules and regulations poses grave and
imminent danger to the health and safety of workers
2. Termination disputes; in the workplace. Within twenty-four hours, a hearing
shall be conducted to determine whether an order for
the stoppage of work or suspension of operations
3. If accompanied with a claim for shall be lifted or not. In case the violation is
reinstatement, those cases that workers may attributable to the fault of the employer, he shall pay
file involving wages, rates of pay, hours of the employees concerned their salaries or wages
work and other terms and conditions of during the period of such stoppage of work or
employment; suspension of operation.

Duman / Labor I / Prof. Battad / Page 8

(d) It shall be unlawful for any person or entity to amended by Section 2, Republic Act No. 6715, March
obstruct, impede, delay or otherwise render 21, 1989).
ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives ART. 288. Penalties. - Except as otherwise provided
issued pursuant to the authority granted under this in this Code, or unless the acts complained of hinge
Article, and no inferior court or entity shall issue on a question of interpretation or implementation of
temporary or permanent injunction or restraining order ambiguous provisions of an existing collective
or otherwise assume jurisdiction over any case bargaining agreement, any violation of the provisions
involving the enforcement orders issued in of this Code declared to be unlawful or penal in nature
accordance with this Article. shall be punished with a fine of not less than One
Thousand Pesos (P1,000.00) nor more than Ten
(e) Any government employee found guilty of violation Thousand Pesos (P10,000.00) or imprisonment of not
of, or abuse of authority, under this Article shall, after less than three months nor more than three years, or
appropriate administrative investigation, be subject to both such fine and imprisonment at the discretion of
summary dismissal from the service. the court.

(f) The Secretary of Labor and Employment may, by In addition to such penalty, any alien found guilty shall
appropriate regulations, require employers to keep be summarily deported upon completion of service of
and maintain such employment records as may be sentence.
necessary in aid of his visitorial and enforcement
powers under this Code. Any provision of law to the contrary notwithstanding,
any criminal offense punished in this Code, shall be
ART. 129. Recovery of wages, simple money claims under the concurrent jurisdiction of the Municipal or
and other benefits. - Upon complaint of any interested City Courts and the Courts of First Instance. (As
party, the Regional Director of the Department of amended by Section 3, Batas Pambansa Bilang 70).
Labor and Employment or any of the duly authorized
hearing officers of the Department is empowered, ART. 289. Who are liable when committed by other
through summary proceeding and after due notice, to than natural person. - If the offense is committed by a
hear and decide any matter involving the recovery of corporation, trust, firm, partnership, association or any
wages and other monetary claims and benefits, other entity, the penalty shall be imposed upon the
including legal interest, owing to an employee or guilty officer or officers of such corporation, trust, firm,
person employed in domestic or household service or partnership, association or entity.
househelper under this Code, arising from employer-
employee relations: Provided, That such complaint
does not include a claim for reinstatement: Provided Title II
further, That the aggregate money claims of each PRESCRIPTION OF OFFENSES AND CLAIMS
employee or househelper does not exceed Five
thousand pesos (P5,000.00). The Regional Director ART. 290. Offenses. - Offenses penalized under this
or hearing officer shall decide or resolve the complaint Code and the rules and regulations issued pursuant
within thirty (30) calendar days from the date of the thereto shall prescribe in three (3) years.
filing of the same. Any sum thus recovered on behalf
of any employee or househelper pursuant to this All unfair labor practice arising from Book V shall be
Article shall be held in a special deposit account by, filed with the appropriate agency within one (1) year
and shall be paid on order of, the Secretary of Labor from accrual of such unfair labor practice; otherwise,
and Employment or the Regional Director directly to they shall be forever barred.
the employee or househelper concerned. Any such
sum not paid to the employee or househelper
because he cannot be located after diligent and ART. 291. Money claims. - All money claims arising
reasonable effort to locate him within a period of three from employer-employee relations accruing during the
(3) years, shall be held as a special fund of the effectivity of this Code shall be filed within three (3)
Department of Labor and Employment to be used years from the time the cause of action accrued;
exclusively for the amelioration and benefit of otherwise they shall be forever barred.
workers.
All money claims accruing prior to the effectivity of
Any decision or resolution of the Regional Director or this Code shall be filed with the appropriate entities
hearing officer pursuant to this provision may be established under this Code within one (1) year from
appealed on the same grounds provided in Article 223 the date of effectivity, and shall be processed or
of this Code, within five (5) calendar days from receipt determined in accordance with the implementing rules
of a copy of said decision or resolution, to the and regulations of the Code; otherwise, they shall be
National Labor Relations Commission which shall forever barred.
resolve the appeal within ten (10) calendar days from
the submission of the last pleading required or Workmen’s compensation claims accruing prior to the
allowed under its rules. effectivity of this Code and during the period from
November 1, 1974 up to December 31, 1974, shall be
The Secretary of Labor and Employment or his duly filed with the appropriate regional offices of the
authorized representative may supervise the payment Department of Labor not later than March 31, 1975;
of unpaid wages and other monetary claims and otherwise, they shall forever be barred. The claims
benefits, including legal interest, found owing to any shall be processed and adjudicated in accordance
employee or househelper under this Code. (As with the law and rules at the time their causes of
action accrued.
Duman / Labor I / Prof. Battad / Page 9
 ART. 292. Institution of money claims. - Money claims (h) “Person” means any individual, partnership, firm,
specified in the immediately preceding Article shall be association, trust, corporation or legal representative
filed before the appropriate entity independently of the thereof.
criminal action that may be instituted in the proper
courts. Art. 212.

Pending the final determination of the merits of money (e) "Employer" includes any person acting in the
claims filed with the appropriate entity, no civil action interest of an employer, directly or indirectly. The term
arising from the same cause of action shall be filed shall not include any labor organization or any of its
with any court. This provision shall not apply to officers or agents except when acting as employer.
employees compensation case which shall be
processed and determined strictly in accordance with
the pertinent provisions of this Code. (f) "Employee" includes any person in the employ of
an employer. The term shall not be limited to the
employees of a particular employer, unless the Code
so explicitly states. It shall include any individual
whose work has ceased as a result of or in
ART. III, SEC. 11 AND 16, CONSTITUTION connection with any current labor dispute or because
Section 11. Free access to the courts and quasi- of any unfair labor practice if he has not obtained any
judicial bodies and adequate legal assistance shall other substantially equivalent and regular
not be denied to any person by reason of poverty. employment.

Section 16. All persons shall have the right to a b. Factors/Tests

speedy disposition of their cases before all judicial,
quasi-judicial, or administrative bodies.  Ruga v. NLRC, 181 SCRA 437 (1990)

C. Work Relationship

1. Employer and Employee Relationship

a. Definition of Employer and Employee, Arts. 97 (a) (b) (c),

167 (f)
(g) (h), 212 (e) (f)

ART. 97. Definitions. - As used in this Title:

(a) "Person" means an individual, partnership,

association, corporation, business trust, legal
representatives, or any organized group of
persons.

(b) "Employer" includes any person acting

directly or indirectly in the interest of an
employer in relation to an employee and shall
include the government and all its branches,
subdivisions and instrumentalities, all
government-owned or controlled corporations
and institutions, as well as non-profit private
institutions, or organizations.

 Perpetual Help Credit v. Faburada et al., 366

(c) "Employee" includes any individual SCRA 693 (2001)
employed by an employer.

Art. 167. Definition of Terms.—As used in this Title,

unless the context indicates otherwise:

(f) “Employer” means any person, natural or juridical,

employing the services of the employee.

(g) “Employee” means any person compulsorily

covered by the GSIS under Commonwealth Act
Numbered One hundred eighty-six, as amended,
including the members of the Armed Forces of the
Philippines, and any person employed as casual,
emergency, temporary, substitute or contractual, or
any person compulsorily covered by the SSS under
Republic Act Numbered Eleven hundred sixty-one, as
amended.
Duman / Labor I / Prof. Battad / Page 10
 Vicente Sy v. Court of Appeals, 398 SCRA 301  Angelina Francisco v. NLRC, et al., GR No.
(2003) 170087, Aug. 31, 2006

c. Piercing the Corporate Veil

 Pamplona Plantatin Co., Inc. v.

 Chavez v. NLRC, 448 SCRA 478 (2005) Tinghil, 450 SCRA 421 (2005)

Duman / Labor I / Prof. Battad / Page 11

 RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
.
.
By virtue of the power vested in the Secretary of
Labor and Employment under Articles 5 (Rule-
making) and 106 (Contractor or Subcontractor) of
the Labor Code of the Philippines, as amended,
the following regulations governing contracting
and subcontracting arrangements are hereby
issued:
Section 1. Guiding principles. - Contracting and
subcontracting arrangements are expressly
allowed by law and are subject to regulation for
the promotion of employment and the observance
2. Independent Contractor and Labor-only Contractor, Art. 106- of the rights of workers to just and humane
107, 109; DO No. 18-02, S 2002 conditions of work, security of tenure, self-
organization, and collective bargaining. Labor-
only contracting as defined herein shall be
ART. 106. Contractor or subcontractor. - Whenever an prohibited.
employer enters into a contract with another person
for the performance of the former’s work, the Section 2 . Coverage. - These Rules shall apply to
employees of the contractor and of the latter’s all parties of contracting and subcontracting
subcontractor, if any, shall be paid in accordance with arrangements where employer-employee
the provisions of this Code. relationship exists. Placement activities through
private recruitment and placement agencies as
In the event that the contractor or subcontractor fails governed by Articles 25 to 39 of the Labor Code
to pay the wages of his employees in accordance with are not covered by these Rules.
this Code, the employer shall be jointly and severally
liable with his contractor or subcontractor to such Section 3. Trilateral Relationship in Contracting
employees to the extent of the work performed under Arrangements. - In legitimate contracting, there
the contract, in the same manner and extent that he is exists a trilateral relationship under which there is
liable to employees directly employed by him. a contract for a specific job, work or service
between the principal and the contractor or
The Secretary of Labor and Employment may, by subcontractor, and a contract of employment
appropriate regulations, restrict or prohibit the between the contractor or subcontractor and its
contracting-out of labor to protect the rights of workers workers. Hence, there are three parties involved in
established under this Code. In so prohibiting or these arrangements, the principal which decides
restricting, he may make appropriate distinctions to farm out a job or service to a contractor or
between labor-only contracting and job contracting as subcontractor, the contractor or subcontractor
well as differentiations within these types of which has the capacity to independently
contracting and determine who among the parties undertake the performance of the job, work or
involved shall be considered the employer for service, and the contractual workers engaged by
purposes of this Code, to prevent any violation or the contractor or subcontractor to accomplish the
circumvention of any provision of this Code. job work or service.

There is "labor-only" contracting where the person Section 4. Definition of Basic Terms. - The
supplying workers to an employer does not have following terms as used in these Rules, shall
substantial capital or investment in the form of tools, mean:
equipment, machineries, work premises, among
others, and the workers recruited and placed by such (a) "Contracting" or "subcontracting" refers to an
person are performing activities which are directly arrangement whereby a principal agrees to put
related to the principal business of such employer. In out or farm out with a contractor or subcontractor
such cases, the person or intermediary shall be the performance or completion of a specific job,
considered merely as an agent of the employer who work or service within a definite or predetermined
shall be responsible to the workers in the same period, regardless of whether such job, work or
manner and extent as if the latter were directly service is to be performed or completed within or
employed by him. outside the premises of the principal.

ART. 107. Indirect employer. - The provisions of the (b) "Contractor or subcontractor" refers to any
immediately preceding article shall likewise apply to person or entity engaged in a legitimate
any person, partnership, association or corporation contracting or subcontracting arrangement.
which, not being an employer, contracts with an
independent contractor for the performance of any
work, task, job or project. (c) "Contractual employee" includes one
employed by a contractor or subcontractor to
perform or complete a job, work or service
DEPARTMENT ORDER NO. 18 - 02 pursuant to an arrangement between the latter
(Series of 2002) and a principal.
.
.
Duman / Labor I / Prof. Battad / Page 12
(d) "Principal" refers to any employer who puts security of tenure or basic rights, or
out or farms out a job, service or work to a circumventing the provisions of regular
contractor or subcontractor. employment, in any of the following instances:

Section 5. Prohibition against labor-only (i) In addition to his assigned functions, requiring
contracting. - Labor-only contracting is hereby the contractual employee to perform functions
declared prohibited. For this purpose, labor-only which are currently being performed by the
contracting shall refer to an arrangement where regular employees of the principal or of the
the contractor or subcontractor merely recruits, contractor or subcontractor;
supplies or places workers to perform a job, work
or service for a principal, and any of the following (ii) Requiring him to sign, as a precondition to
elements are present: employment or continued employment, an
(i) The contractor or subcontractor does not have antedated resignation letter; a blank payroll; a
substantial capital or investment which relates to waiver of labor standards including minimum
the job, work or service to be performed and the wages and social or welfare benefits; or a
employees recruited, supplied or placed by such quitclaim releasing the principal, contractor or
contractor or subcontractor are performing subcontractor from any liability as to payment of
activities which are directly related to the main future claims; and
business of the principal; or
(iii) Requiring him to sign a contract fixing the
(ii) the contractor does not exercise the right to period of employment to a term shorter than the
control over the performance of the work of the term of the contract between the principal and the
contractual employee. contractor or subcontractor, unless the latter
contract is divisible into phases for which
The foregoing provisions shall be without substantially different skills are required and this
prejudice to the application of Article 248 (C ) of is made known to the employee at the time of
the Labor Code, as amended. engagement;

"Substantial capital or investment" refers to (d) Contracting out of a job, work or service
capital stocks and subscribed capitalization in the through an in-house agency which refers to a
case of corporations, tools, equipment, contractor or subcontractor engaged in the
implements, machineries and work premises, supply of labor which is owned, managed or
actually and directly used by the contractor or controlled by the principal and which operates
subcontractor in the performance or completion solely for the principal;
of the job, work or service contracted out.
(e) Contracting out of a job, work or service
The "right to control" shall refer to the right directly related to the business or operation of the
reserved to the person for whom the services of principal by reason of a strike or lockout whether
the contractual workers are performed, to actual or imminent;
determine not only the end to be achieved, but
also the manner and means to be used in (f) Contracting out of a job, work or service being
reaching that end. performed by union members when such will
interfere with, restrain or coerce employees in the
Section 6. Prohibitions. - Notwithstanding Section exercise of their rights to self organization as
5 of these Rules, the following are hereby provided in Art. 248 (c) of the Labor Code, as
declared prohibited for being contrary to law or amended.
public policy:
Section 7. Existence of an employer-employee
(a) Contracting out of a job, work or service when relationship. - The contractor or subcontractor
not done in good faith and not justified by the shall be considered the employer of the
exigencies of the business and the same results contractual employee for purposes of enforcing
in the termination of regular employees and the provisions of the Labor Code and other social
reduction of work hours or reduction or splitting legislation. The principal, however, shall be
of the bargaining unit; solidarily liable with the contractor in the event of
any violation of any provision of the Labor Code,
(b) Contracting out of work with a "cabo" as including the failure to pay wages.
defined in Section 1 (ii), Rule I, Book V of these The principal shall be deemed the employer of the
Rules. "Cabo" refers to a person or group of contractual employee in any of the following
persons or to a labor group which, in the guise of cases as declared by a competent authority:
a labor organization, supplies workers to an
employer, with or without any monetary or other (a) where there is labor-only contracting; or
consideration whether in the capacity of an agent
of the employer or as an ostensible independent (b) where the contracting arrangement falls within
contractor; the prohibitions provided in Section 6
(Prohibitions) hereof.
(c) Taking undue advantage of the economic
situation or lack of bargaining strength of the Section 8. Rights of Contractual Employees. -
contractual employee, or undermining his Consistent with Section 7 of these Rules, the
Duman / Labor I / Prof. Battad / Page 13
contractual employee shall be entitled to all the The registration of contractors and
rights and privileges due a regular employee as subcontractors shall be necessary for purposes
provided for in the Labor Code, as amended, to of establishing an effective labor market
include the following: information and monitoring.
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive Failure to register shall give rise to the
leave, rest days, overtime pay, holiday pay, 13th presumption that the contractor is engaged in
month pay and separation pay; labor-only contracting.
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and
peaceful concerted action; and Section 12. Requirements for registration. - A
(e) Security of tenure. contractor or subcontractor shall be listed in the
Section 9. Contract between contractor or registry of contractors and subcontractors upon
subcontractor and contractual employee. - completion of an application form to be provided
Notwithstanding oral or written stipulations to the by the DOLE. The applicant contractor or
contrary, the contract between the contractor or subcontractor shall provide in the application
subcontractor and the contractual employee, form the following information:
which shall be in writing, shall include the
following terms and conditions: (a) The name and business address of the
(a) The specific description of the job, work or applicant and the area or areas where it seeks to
service to be performed by the contractual operate;
employee;
(b) The names and addresses of officers, if the
(b) The place of work and terms and conditions of applicant is a corporation, partnership,
employment, including a statement of the wage cooperative or union;
rate applicable to the individual contractual
employee; and (c) The nature of the applicant's business and the
industry or industries where the applicant seeks
(c) The term or duration of employment, which to operate;
shall be coextensive with the contract of the
principal and subcontractor, or with the specific (d) The number of regular workers; the list of
phase for which the contractual employee is clients, if any; the number of personnel assigned
engaged, as the case may be. to each client, if any and the services provided to
the client;
The contractor or subcontractor shall inform the
contractual employee of the foregoing terms and (e) The description of the phases of the contract
conditions on or before the first day of his and the number of employees covered in each
employment. phase, where appropriate; and

Section 10. Effect of Termination of Contractual (f) A copy of audited financial statements if the
Employment. - In cases of termination of applicant is a corporation, partnership,
employment prior to the expiration of the contract cooperative or a union, or copy of the latest ITR if
between the principal and the contractor or the applicant is a sole proprietorship.
subcontractor, the right of the contractual
employee to separation pay or other related
benefits shall be governed by the applicable laws The application shall be supported by:
and jurisprudence on termination of employment. (a) A certified copy of a certificate of registration
of firm or business name from the Securities and
Exchange Commission (SEC), Department of
Where the termination results from the expiration Trade and Industry (DTI), Cooperative
of the contract between the principal and the Development Authority (CDA), or from the DOLE if
contractor or subcontractor, or from the the applicant is a union; and
completion of the phase of the job, work or
service for which the contractual employee is
engaged, the latter shall not be entitled to (b) A certified copy of the license or business
separation pay. However, this shall be without permit issued by the local government unit or
prejudice to completion bonuses or other units where the contractor or subcontractor
emoluments, including retirement pay as may be operates.
provided by law or in the contract between the
principal and the contractor or subcontractor. The application shall be verified and shall include
an undertaking that the contractor or
Section 11. Registration of Contractors or subcontractor shall abide by all applicable labor
Subcontractors. - Consistent with the authority of laws and regulations.
the Secretary of Labor and Employment to restrict
or prohibit the contracting out of labor through Section 13. Filing and processing of applications.
appropriate regulations, a registration system to - The application and its supporting documents
govern contracting arrangements and to be shall be filed in triplicate in the Regional Offices
implemented by the Regional Offices is hereby where the applicant principally operates. No
established. application for registration shall be accepted
unless all the foregoing requirements are

Duman / Labor I / Prof. Battad / Page 14

complied with. The contractor or subcontractor (a) Non-submission of contracts between the
shall be deemed registered upon payment of a principal and the contractor or subcontractor
registration fee of P100.00 to the Regional Office. when required to do so;

Where all the supporting documents have been (b) Non-submission of annual report;
submitted, the Regional Office shall deny or
approve the application within seven (7) working (c) Findings through arbitration that the
days after its filing. contractor or subcontractor has engaged in labor-
only contracting and the prohibited activities as
Upon registration, the Regional Office shall return provided in Section 6 (Prohibitions) hereof; and
one set of the duly-stamped application
documents to the applicant, retain one set for its (d) Non-compliance with labor standards and
file, and transmit the remaining set to the Bureau working conditions.
of Local Employment. The Bureau shall devise the
necessary forms for the expeditious processing
of all applications for registration. Section 17. Renewal of registration of contractors
or subcontractors. - All registered contractors or
subcontractors may apply for renewal of
Section 14. Duty to produce copy of contract registration every three years. For this purpose,
between the principal and the contractor or the Tripartite Industrial Peace Council (TIPC) as
subcontractor. - The principal or the contractor or created under Executive Order No. 49, shall serve
subcontractor shall be under an obligation to as the oversight committee to verify and monitor
produce a copy of the contract between the the following:
principal and the contractor in the ordinary (a) Engaging in allowable contracting activities;
course of inspection. The contractor shall and
likewise be under an obligation to produce a copy
of the contract of employment of the contractual
worker when directed to do so by the Regional (b) Compliance with administrative reporting
Director or his authorized representative. requirements.

A copy of the contract between the contractual Section 18. Enforcement of Labor Standards and
employee and the contractor or subcontractor Working Conditions. - Consistent with Article 128
shall be furnished the certified bargaining agent, (Visitorial and Enforcement Power) of the Labor
if there is any. Code, as amended, the Regional Director through
his duly authorized representatives, including
labor regulation officers shall have the authority
Section 15. Annual Reporting of Registered to conduct routine inspection of establishments
Contractors. - The contractor or subcontractor engaged in contracting or subcontracting and
shall submit in triplicate its annual report using a shall have access to employer's records and
prescribed form to the appropriate Regional premises at any time of the day or night whenever
Office not later than the 15th of January of the work is being undertaken therein, and the right to
following year. The report shall include: copy therefrom, to question any employee and
investigate any fact, condition or matter which
(a) A list of contracts entered with the principal may be necessary to determine violations or
during the subject reporting period; which may aid in the enforcement of the Labor
Code and of any labor law, wage order, or rules
(b) The number of workers covered by each and regulations issued pursuant thereto.
contract with the principal;
The findings of the duly authorized representative
(c) A sworn undertaking that the benefits from the shall be referred to the Regional Director for
Social Security System (SSS), the Home appropriate action as provided for in Article 128,
Development Mutual Fund (HDMF), PhilHealth, and shall be furnished the collective bargaining
Employees Compensation Commission (ECC), agent, if any.
and remittances to the Bureau of Internal Revenue
(BIR) due its contractual employees have been Based on the visitorial and enforcement power of
made during the subject reporting period. the Secretary of Labor and Employment in Article
128 (a), (b), (c) and (d), the Regional Director shall
The Regional Office shall return one set of the issue compliance orders to give effect to the labor
duly-stamped report to the contractor or standards provisions of the Labor Code, other
subcontractor, retain one set for its file, and labor legislation and these guidelines.
transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt Section 19. Solidary liability. - The principal shall
thereof. be deemed as the direct employer of the
contractual employees and therefore, solidarily
Section 16. Delisting of contractors or liable with the contractor or subcontractor for
subcontractors. - Subject to due process, the whatever monetary claims the contractual
Regional Director shall cancel the registration of employees may have against the former in the
contractors or subcontractors based on any of case of violations as provided for in Sections 5
the following grounds: (Labor-Only contracting), 6 (Prohibitions), 8
(Rights of Contractual Employees) and 16

Duman / Labor I / Prof. Battad / Page 15

 (Delisting) of these Rules. In addition, the
principal shall also be solidarily liable in case the
contract between the principal and contractor or
subcontractor is preterminated for reasons not
attributable to the fault of the contractor or
subcontractor.

Section 20. Supersession. - All rules and

regulations issued by the Secretary of Labor and
Employment inconsistent with the provisions of
this Rule are hereby superseded. Contracting or
subcontracting arrangements in the construction
industry, under the licensing coverage of the
PCAB and shall not include shipbuilding and ship
repairing works, however, shall continue to be
governed by Department Order No. 19, series of
b. Desirable – Unnecessary
1993.
 Coca-Cola Bottlers Phil., Inc. v.
Section 21. Effectivity. - This Order shall be NLRC, 307 SCRA 131 (1999)
effective fifteen (15) days after completion of its
publication in two (2) newspapers of general
circulation.

.
Manila, Philippines, 21 February 2002.

a. Requirements for Independent Contractor

 San Miguel Corp v. NLRC & Maliksi,

GR No. 147566, Dec. 6, 2006

c. Labor Contractor Only; Requisites and

Prohibition

 Manila Water Co., Inc. v. Pena, 434

SCRA 52 (2004)

 LIIKHA-PMPB v. Burlinggame corp.,

GR No. 162833, June 15, 2007

Duman / Labor I / Prof. Battad / Page 16

d. Effect of Finding D. Pre-employment, Recruitment and Placement of
Workers
 San Miguel Corporation v. Abella,
461 SCRA 392 (2005) Reference: Arts. 12-42; POEA Rules; Book 1, Rules III-VIII,
Omnibus Rules; Migrant Workers and Overseas Filipinos Act
of 1995 (RA 8042); Anti-Trafficking in Persons Act 2003 (RA
9208) and Rules and Regulations Implementing RA 9208

1. Pre-employment Policy – Statement of Objectives,

Art. 12 (a) (f);
Const., Art. II, Sec. 9; RA 8042, Sec. 2, 4 & 5.

ART. 12. Statement of objectives. - It is the policy of

the State:

a) To promote and maintain a state of full

employment through improved manpower
training, allocation and utilization;

f) To strengthen the network of public

employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;

1987 Constitution, Art II, Sec. 9

The State shall promote a just and dynamic

social order that will ensure the prosperity
and independence of the nation and free the
people from poverty through policies that
provide adequate social services, promote
full employment, a rising standard of living,
and an improved quality of life for all.
3. Liability of Indirect Employer

 Lanzaderas v. Amethyst Security & REPUBLIC ACT NO. 8042

General Services, Inc., supra SEC. 2. DECLARATION OF POLICIES--
(a) In the pursuit of an independent foreign
policy and while considering national
sovereignty, territorial integrity, national
interest and the right to self-determination
paramount in its relations with other states,
the State shall, at all times, uphold the
dignity of its citizens whether in country or
overseas, in general, and Filipino migrant
workers, in particular.
(b) The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment
and equality of employment opportunities for
all. Towards this end, the State shall provide

Duman / Labor I / Prof. Battad / Page 17

adequate and timely social, economic and encouraged. Appropriate incentives may be
legal services to Filipino migrant workers. extended to them.
(c) While recognizing the significant I. DEPLOYMENT
contribution of Filipino migrant workers to the
national economy through their foreign SEC. 4. Deployment of Migrant Workers -
exchange remittances, the State does not The State shall deploy overseas Filipino
promote overseas employment as a means workers only in countries where the rights of
to sustain economic growth and achieve Filipino migrant workers are protected. The
national development. The existence of the government recognizes any of the following
overseas employment program rests solely as guarantee on the part of the receiving
on the assurance that the dignity and country for the protection and the rights of
fundamental human rights and freedoms of overseas Filipino workers:
the Filipino citizens shall not, at any time, be (a) It has existing labor and social laws
compromised or violated. The State, protecting the rights of migrant workers;
therefore, shall continuously create local
employment opportunities and promote the (b) It is a signatory to multilateral
equitable distribution of wealth and the conventions, declaration or resolutions
benefits of development. relating to the protection of migrant workers;

(d) The State affirms the fundamental (c) It has concluded a bilateral agreement or
equality before the law of women and men arrangement with the government protecting
and the significant role of women in nation- the rights of overseas Filipino workers; and
building. Recognizing the contribution of (d) It is taking positive, concrete measures to
overseas migrant women workers and their protect the rights of migrant workers.
particular vulnerabilities, the State shall
apply gender sensitive criteria in the SEC. 5. TERMINATION OR BAN ON
formulation and implementation of policies DEPLOYMENT - Notwithstanding the
and programs affecting migrant workers and provisions of Section 4 hereof, the
the composition of bodies tasked for the government, in pursuit of the national
welfare of migrant workers. interest or when public welfare so requires,
may, at any time, terminate or impose a ban
(e) Free access to the courts and quasi- on the deployment of migrant workers.
judicial bodies and adequate legal
assistance shall not be denied to any
persons by reason of poverty. In this regard,
it is imperative that an effective mechanism 2. Private Sector – Agencies and Entities
be instituted to ensure that the rights and
a. Parties
interest of distressed overseas Filipinos, in
general, and Filipino migrant workers, in
1) Worker – Art. 13 (a)
particular, documented or undocumented,
are adequately protected and safeguarded. ART. 13. Definitions. - (a) "Worker" means
(f) The right of Filipino migrant workers and any member of the labor force, whether employed or
all overseas Filipinos to participate in the unemployed.
democratic decision-making processes of
the State and to be represented in
institutions relevant to overseas employment 2) Private Employment Agency – Arts. 13 (c) (d), 12 (f), 14
is recognized and guaranteed. (a)

(g) The State recognizes that the ultimate

protection to all migrant workers is the ART. 13. (c) "Private fee-charging
possession of skills. Pursuant to this and as employment agency" means any person or
soon as practicable, the government shall entity engaged in recruitment and placement
deploy and/or allow the deployment only to of workers for a fee which is charged,
skilled Filipino workers. directly or indirectly, from the workers or
(h) Non-governmental organizations, duly employers or both.
recognized as legitimate, are partners of the
State in the protection of Filipino migrant (d) "License" means a document issued by
workers and in the promotion of their the Department of Labor authorizing a
welfare, the State shall cooperate with them person or entity to operate a private
in a spirit of trust and mutual respect. employment agency.
(I) Government fees and other administrative
costs of recruitment, introduction, placement ART. 12. Statement of objectives. - It is the
and assistance to migrant workers policy of the State:
shall be rendered free without prejudice to
the provision of Section 36 hereof. f) To strengthen the network of public
Nonetheless, the deployment of Filipino employment offices and rationalize the
overseas workers, whether land-based or participation of the private sector in the
sea-based by local service contractors and recruitment and placement of workers,
manning agencies employing them shall be locally and overseas, to serve national
development objectives;

Duman / Labor I / Prof. Battad / Page 18

 ART. 14. Employment promotion. - The Sec. 6. DEFINITIONS. - For purposes of this
Secretary of Labor shall have the power and Act, illegal recruitment shall mean any act of
authority: canvassing, enlisting, contracting,
transporting, utilizing, hiring, procuring
(a) To organize and establish new workers and includes referring, contact
employment offices in addition to the existing services, promising or advertising for
employment offices under the Department of employment abroad, whether for profit or
Labor as the need arises; not, when undertaken by a non-license or
non-holder of authority contemplated under
Article 13(f) of Presidential Decree No. 442,
as amended, otherwise known as the Labor
Code of the Philippines. Provided, that such
non-license or non-holder, who, in any
manner, offers or promises for a fee
3) Private Recruitment Entity – Arts. 13 (e) (f), 12 (f), 14 employment abroad to two or more persons
(a) shall be deemed so engaged. It shall
likewise include the following acts, whether
committed by any persons, whether a non-
licensee, non-holder, licensee or holder of
ART. 13. (e) "Private recruitment entity" authority.
means any person or association engaged in
the recruitment and placement of workers, (a) To charge or accept directly or indirectly
locally or overseas, without charging, directly any amount greater than the specified in the
or indirectly, any fee from the workers or schedule of allowable fees prescribed by the
employers. Secretary of Labor and Employment, or to
make a worker pay any amount greater than
(f) "Authority" means a document issued by that actually received by him as a loan or
the Department of Labor authorizing a advance;
person or association to engage in (b) To furnish or publish any false notice or
recruitment and placement activities as a information or document in relation to
private recruitment entity. recruitment or employment;
(c) To give any false notice, testimony,
ART. 12. Statement of objectives. - It is the
information or document or commit any act
policy of the State:
of misrepresentation for the purpose of
securing a license or authority under the
f) To strengthen the network of public Labor Code;
employment offices and rationalize the
participation of the private sector in the (d) To induce or attempt to induce a worker
recruitment and placement of workers, already employed to quit his employment in
locally and overseas, to serve national order to offer him another unless the transfer
development objectives; is designed to liberate a worker from
oppressive terms and conditions of
employment;
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and (e) To influence or attempt to influence any
authority: persons or entity not to employ any worker
who has not applied for employment through
(a) To organize and establish new his agency;
employment offices in addition to the existing (f) To engage in the recruitment of placement
employment offices under the Department of of workers in jobs harmful to public health or
Labor as the need arises; morality or to dignity of the Republic of the
Philippines;
b. Recruitment and Placement
(g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor and
1) Local Employment, Art. 13 (b)
Employment or by his duly authorized
representative;
(b) "Recruitment and placement" refers to
any act of canvassing, enlisting, contracting, (h) To fail to submit reports on the status of
transporting, utilizing, hiring or procuring employment, placement vacancies,
workers, and includes referrals, contract remittances of foreign exchange earnings,
services, promising or advertising for separations from jobs, departures and such
employment, locally or abroad, whether for other matters or information as may be
profit or not: Provided, That any person or required by the Secretary of Labor and
entity which, in any manner, offers or Employment;
promises for a fee, employment to two or (i) To substitute or alter to the prejudice of
more persons shall be deemed engaged in the worker, employment contracts approved
recruitment and placement. and verified by the Department of Labor and
Employment from the time of actual signing
thereof by the parties up to and including the
2) Overseas Employment, Sec. 6, RA 8042 period of the expiration of the same without

Duman / Labor I / Prof. Battad / Page 19

 the approval of the Department of Labor and rules and regulations as may be issued by
Employment; the Secretary of Labor.
(j) For an officer or agent of a recruitment or ART. 12. Statement of objectives. - It is the
placement agency to become an officer or policy of the State:
member of the Board of any corporation
engaged in travel agency or to be engaged f) To strengthen the network of public
directly on indirectly in the management of a employment offices and rationalize the
travel agency; participation of the private sector in the
recruitment and placement of workers,
(k) To withhold or deny travel documents locally and overseas, to serve national
from applicant workers before departure for development objectives;
monetary or financial considerations other
than those authorized under the Labor Code
2) Prohibited Business Agencies and Entities, Arts. 16, 18,
and its implementing rules and regulations; 25, 26
(l) Failure to actually deploy without valid
reasons as determined by the Department of ART. 16. Private recruitment. - Except as provided in
Labor and Employment; and Chapter II of this Title, no person or entity other than
the public employment offices, shall engage in the
(m) Failure to reimburse expenses incurred recruitment and placement of workers.
by the workers in connection with his
documentation and processing for purposes ART. 18. Ban on direct-hiring. - No employer may hire
of deployment, in cases where the a Filipino worker for overseas employment except
deployment does not actually take place through the Boards and entities authorized by the
without the worker's fault. Illegal recruitment Secretary of Labor. Direct-hiring by members of the
when committed by a syndicate or in large diplomatic corps, international organizations and such
scale shall be considered as offense other employers as may be allowed by the Secretary
involving economic sabotage. of Labor is exempted from this provision.
Illegal recruitment is deemed committed by a
ART. 25. Private sector participation in the recruitment
syndicate carried out by a group of three (3)
or more persons conspiring or confederating and placement of workers. - Pursuant to national
development objectives and in order to harness and
with one another. It is deemed committed in
large scale if committed against three (3) or maximize the use of private sector resources and
initiative in the development and implementation of a
more persons individually or as a group.
comprehensive employment program, the private
The persons criminally liable for the above employment sector shall participate in the recruitment
offenses are the principals, accomplices and and placement of workers, locally and overseas,
accessories. In case of juridical persons, the under such guidelines, rules and regulations as may
officers having control, management or be issued by the Secretary of Labor.
direction of their business shall be liable.
ART. 26. Travel agencies prohibited to recruit. - Travel
c. Allowed and Protected Entities agencies and sales agencies of airline companies are
prohibited from engaging in the business of
1) Allowed Private Agencies and Entities, Arts. 16, 18, 25, recruitment and placement of workers for overseas
12 (f) employment whether for profit or not.

ART. 16. Private recruitment. - Except as

d. Government Techniques of Regulation – Private Recruitment
provided in Chapter II of this Title, no person
or entity other than the public employment 1) Licensing, Arts. 27, 28, 29, 30, 31, POEA rules and
offices, shall engage in the recruitment and Regulations, Book II, Sec. 1 and Book II, Rule II
placement of workers.
ART. 18. Ban on direct-hiring. - No employer
may hire a Filipino worker for overseas ART. 27. Citizenship requirement. - Only
employment except through the Boards and Filipino citizens or corporations, partnerships
entities authorized by the Secretary of Labor. or entities at least seventy-five percent
Direct-hiring by members of the diplomatic (75%) of the authorized and voting capital
corps, international organizations and such stock of which is owned and controlled by
other employers as may be allowed by the Filipino citizens shall be permitted to
Secretary of Labor is exempted from this participate in the recruitment and placement
provision. of workers, locally or overseas.
ART. 25. Private sector participation in the
recruitment and placement of workers. - ART. 28. Capitalization. - All applicants for
Pursuant to national development objectives authority to hire or renewal of license to
and in order to harness and maximize the recruit are required to have such substantial
use of private sector resources and initiative capitalization as determined by the Secretary
in the development and implementation of a of Labor.
comprehensive employment program, the
private employment sector shall participate ART. 29. Non-transferability of license or
in the recruitment and placement of workers, authority. - No license or authority shall be
locally and overseas, under such guidelines, used directly or indirectly by any person
other than the one in whose favor it was
Duman / Labor I / Prof. Battad / Page 20
 issued or at any place other than that stated application together with the following
in the license or authority be transferred, requirements:
conveyed or assigned to any other person or
entity. Any transfer of business address, a. A certified copy of the Articles of
appointment or designation of any agent or Incorporation or of Partnership duly
representative including the establishment of registered with the Securities and Exchange
additional offices anywhere shall be subject Commission (SEC), in the case of
to the prior approval of the Department of corporation or partnership or Certificate of
Labor. Registration of firm or business name with
the Bureau of Domestic Trade (BDT) in the
ART. 30. Registration fees. - The Secretary case of a single proprietorship;
of Labor shall promulgate a schedule of fees
for the registration of all applicants for b. Proof of financial capacity: In the case of
license or authority. a single proprietorship or partnership,
verified income tax returns for the past two
ART. 31. Bonds. - All applicants for license or (2) years and a bank certificate of a cash
authority shall post such cash and surety deposit of P250,000.00, provided that the
bonds as determined by the Secretary of applicant should submit an authority to
Labor to guarantee compliance with examine such bank deposit.
prescribed recruitment procedures, rules and
regulations, and terms and conditions of In the case of a newly organized corporation,
employment as may be appropriate. submission of a bank certificate of a cash
deposit of at least P250,000.00 with authority
POEA Rules, Book II, to examine the same. For an existing
LICENSING AND REGULATION corporation, submission of a verified financial
statement, corporate tax returns for the past
RULE I two (2) years and bank certification of a cash
PARTICIPATION OF THE PRIVATE SECTOR IN THE deposit of at least P250,000.00 with the
OVERSEAS EMPLOYMENT PROGRAM corresponding authority to examine such
deposit.
Section 1. Qualifications. Only those who
possess the following qualifications may be c. Escrow agreement in the amount of
permitted to engage in the business of P200,000.00 with an accredited reputable
recruitment and placement of Filipino banking corporation to primarily answer for
workers: valid and legal claims of recruited workers as
a result of recruitment violations or money
a. Filipino citizens, partnerships or claims;
corporations at least seventy five percent
(75%) of the authorized capital stock of
which is owned and controlled by Filipino d. Clearance of all members of the Board of
citizens; Directors, partner, or proprietor of the
applicant agency from the National Bureau
b. A minimum capitalization of Two Million of Investigation (NBI) and other government
Pesos (P2,000,000.00) in case of a single agencies as the need may require, Fiscal’s
proprietorship or partnership and a minimum clearance in case of persons with criminal
paid-up capital of Two Million Pesos cases; provided that where the member or
(P2,000,000.00) in case of a corporation; partner concerned is a foreigner, clearance
Provided that those with existing licenses from his country of origin shall be
shall, within four years from effectivity acceptable;
hereof, increase their capitalization or paid
up capital, as the case may be, to Two e. Proof of marketing capability;
Million Pesos (P2,000,000.00) at the rate of
Two Hundred Fifty Thousand Pesos
(P250,000.00) every year. For land-based applicants:
c. Those not otherwise disqualified by law or
other government regulations to engage in
the recruitment and placement of workers for An applicant with an actual principal/foreign
overseas employment. employer to be serviced, shall at the time of
application submit the following documents
for evaluation:
RULE II

ISSUANCE OF LICENSE

(1) A duly executed Special Power of

Attorney authenticated by the Philippine
Section 1. Requirements for Issuance of Embassy/Consulate or Labor Attache in the
License. - Every applicant for license to place where the principal/employers hold
operate a private employment agency or their office; or
manning agency shall submit a written

Duman / Labor I / Prof. Battad / Page 21

(2) A concluded service/recruitment
agreement authenticated by the Philippine (5) Shall assume full and complete
Embassy/Consulate, or Labor Attache in the responsibility for all acts of its officials,
place where the project/job site is located; employees and representatives done in
connection with recruitment and placement;
(3) An authenticated manpower mobilization
request or visa approval of not less than fifty g. List of all officials and personnel involved
(50) workers for deployment within a period in the recruitment and placement, together
not exceeding six (6) months from issuance with their appointment, bio-data and two (2)
of approved license; copies of their passport-size pictures.

h. Copy of contract of lease or proof of

building ownership together with office
An applicant who, at the time of application address.
is unable to present a foreign
principal/employer shall, upon compliance Section 2. Action on the Application. - Within
with all other licensing requirements as thirty (30) calendar days from receipt of
herein provided, be issued a provisional application or requirements including proof of
license, subject to submission of a verified payment of a non-refundable filing fee of
undertaking to deploy at least fifty (50) P5,000.00, the Administration shall evaluate
workers, exclusive of direct hired, within a pertinent documents of the applicant, inspect
period not exceeding six (6) months from the offices and equipment and recommend
date of issuance of provisional license. It is to the Secretary the approval or denial of the
understood that failure to comply with this application.
undertaking shall result in the automatic
revocation of the provisional license.
Section 3. Issuance of License. - The
Administration shall recommend to the
Secretary issuance of the corresponding
For manning applicants: license upon due evaluation and compliance
with licensing requirements and operational
(1) A duly executed Special Power of standards.
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in Section 4. Payment of Fees and Posting of
place where the vessel Bonds. - Upon approval of the application,
owners/operators/manager hold their the applicant shall pay a license fee of
principal office; or P30,000.00. It shall also post a cash bond of
P100,000.00 and a surety bond of
(2) A duly concluded manning agreement P50,000.00 from a bonding company
authenticated by the Philippine Embassy, acceptable to the Administration and duly
Consulate, or Labor Attache in the place accredited by the Insurance Commission.
where the vessel/owners/operators/ The bonds shall answer for all valid and legal
manager hold their principal office; claims arising from violations of the
conditions for the grant and use of the
(3) A manpower mobilization request of not license, and/or accreditation and contracts of
less than fifty (50) seafarers for deployment employment. The bonds shall likewise
within a period not exceeding six (6) months guarantee compliance with the provisions of
from issuance of approved license. the Code and its implementing rules and
regulations relating to recruitment and
f. A verified undertaking stating that the placement, the Rules of the Administration
applicant: and relevant issuances of the Department
and all liabilities which the Administration
(1) Shall select only medically and may impose. The surety bonds shall include
technically qualified recruits; the condition “that notice to the principal is
notice to the surety and that any judgment
(2) Shall assume full and complete against the principal in connection with
responsibility for all claims and liabilities matters falling under POEA’s jurisdiction
which may arise in connection with the use shall be binding and conclusive on the
of license; surety. The surety bonds shall be co-
terminus with the validity period of the
(3) Shall assume joint and solidary liability license.
with the employer for all claims and liabilities
which may arise in connection with the Section 5. Validity of License. - Every
implementation of the contract, including but license shall be valid for at least two (2)
not limited to payment of wages, death and years from the date of issuance unless
disability compensation and repatriation; sooner cancelled or revoked by the
Secretary or suspended by the
(4) Shall guarantee compliance with the Administration for violation of the Code and
existing labor and social legislations of the its rules and relevant decrees, orders and
Philippines and of the country of employment issuances and other rules and regulations of
of recruited workers; and the Department. Such license shall be valid
Duman / Labor I / Prof. Battad / Page 22
only at the place/s stated therein and when new members of the Board from the
used by the licensed person, partnership or government agencies identified in Section 1
corporation. (e) of this Rule.

Section 6. Non-Transferability of License. - Section 10. Change of Other Officers and

No license shall be transferred, conveyed or Personnel. - Every change or termination of
assigned to any person, partnership or appointment of officers, representatives and
corporation. It shall not be used directly or personnel shall be registered with the
indirectly by any person, partnership or Administration within thirty (30) calendar
corporation other than the one in whose days from the date of such change.
favor it was issued. Violation shall cause
automatic revocation of license. The Administration reserves the right to deny
the appointment of officers and employees
In case of death of the sole proprietor, and in who were directly involved in recruitment
order to prevent disruption of operation and irregularities.
so as not to prejudice the interest of
legitimate heirs, the licensed single Section 11. Appointment of
proprietorship may be allowed to continue Representatives. - Every appointment of
only for the purpose of winding up its representatives or agents of licensed agency
business operation. shall be subject to prior approval or authority
of the Administration.
Section 7. Change of
Ownership/Relationship of Single The approval may be issued upon
Proprietorship or Partnership. - Transfer or submission of or compliance with the
change of ownership of a single following requirements:
proprietorship licensed to engage in
overseas employment shall cause the a. Proposed appointment or special power of
automatic revocation of the license. The attorney;
new owner shall be required to apply for a
license in accordance with these Rules. b. Clearances of the proposed
representative or agent from NBI;
A change in the relationship of the partners
in a partnership duly licensed to engage in c. A sworn or verified statement by the
overseas employment which materially designating or appointing person or
interrupts the course of the business or company assuming full responsibility for all
results in the actual dissolution of the acts of the agent or representative done in
partnership shall likewise cause the connection with the recruitment and
automatic revocation of the license. placement of workers;

Section 8. Upgrading of Single Section 12. Publication of Change of

Proprietorship or Partnerships. - License Directors/Other Officers and Personnel/
holders which are single proprietorships or Revocation or Amendment of Appointment of
partnerships may, subject to the guidelines Representatives. - In addition to the
of the Administration, convert into requirement of registration with and
corporation for purposes of upgrading or submission to the Administration, every
raising their capabilities to respond change in the membership of the Board of
adequately to developments/changes in the Directors, resignation/termination of other
international labor market and to enable officers and personnel, revocation or
them to better comply with their amendment of appointment of
responsibilities arising from the recruitment representatives shall be published at least
and deployment of workers overseas. once in a newspaper of general circulation,
in order to bind third parties. Proof of such
The approval of merger, consolidation or publication shall be submitted to the
upgrading shall automatically revoke or Administration
cancel the licenses of the single
proprietorships, partnerships or corporations Section 13. Transfer of Business Address
so merged, consolidated or upgraded. and Studio. - Any transfer of business
address shall be effected only with prior
Section 9. Change of Directors of authority or approval of the Administration.
Corporation. - Every change in the The approval shall be issued only upon
composition of the Board of Directors of a formal notice of the intention to transfer with
corporation licensed to participate in the following attachments:
overseas employment shall be registered
with the Administration within thirty (30) a. Copy of the company’s notice to the BDT
calendar days from the date the change was or the SEC on the transfer of business
decided or approved. The corporation shall address;
be required to submit to the Administration
the Minutes of Proceedings duly certified by b. In the case of a corporation, a Board
the SEC, the bio-data and clearances of the Resolution duly registered with the SEC
Duman / Labor I / Prof. Battad / Page 23
authorizing the transfer of business address; past two (2) years, verified corporate or
individual tax returns with confirmation
receipts, and compliance with capitalization
c. In the case of a single proprietorship, a requirements and infusion thereof as the
copy of the BDT’s acknowledgment of the case may be, as certified by the Securities
notice to transfer; and and Exchange Commission;

d. Copy of the contract of lease or proof of f. Summary of deployment reports during the
building ownership. validity of the license sought to be renewed;

The new office shall be subject to the normal g. Summary of payroll reports in case of
ocular inspection procedures by duly contractors and manning agencies during
authorized representatives of the the validity of the license sought to be
Administration. renewed; and

h. Other requirements as may be imposed

A notice to the public of the new address by the Administration.
shall be published in a newspaper of general
circulation.
Section 18. Non-expiration of License. -
Where the license holder has made timely
Section 14. Establishment of Executive and sufficient application for renewal, the
Office. - The establishment of an executive existing license shall not expire until the
office outside of the registered address shall application shall have been finally
be effected only with prior approval or determined by the Administration.
authority of the Administration. The approval
may be issued upon submission of an
affidavit of undertaking to the effect that no Section 19. Action on Renewal of License. -
recruitment activity whatsoever shall be Within thirty (30) calendar days from receipt
conducted thereat and that the agency has a of the application for renewal the
valid contract of lease or building ownership. Administration shall undertake evaluation
and inspection and thereafter recommend to
the Secretary the grant or denial of the
Section 15. Establishment of Branch and application.
Extension Offices. - Branch and extension
offices may be established in areas
approved by the Secretary, subject to Section 20. Failure to Renew. - Any agency
implementing guidelines. which fails to obtain a renewal of its license
within thirty (30) calendar days from
expiration thereof, shall be immediately
Section 16. Conduct of Recruitment Outside deemed delisted and disallowed from
of Registered Office, Branch or Extension conducting recruitment and placement.
Office. - No licensed agency shall conduct
any provincial recruitment, job fairs or
recruitment activities of any form outside of Section 21. Denial of Renewal of Licenses.
the address stated in the license, - Licenses of agencies which fail to conclude
acknowledged Branch or Extension Office or a recruitment or manning agreement and/or
without first securing prior authority from the undertake minimum levels of worker
Administration of the Center. deployment and foreign exchange
generation or those which fail to meet the
minimum operational standards and
Section 17. Renewal of License. - An requirements set by the Administration, shall
agency shall submit an application for the not be renewed.
renewal thereof to the Administration. Such
application shall be supported by the
following documents: Section 22. When to Consider Cash
Bond/Deposit in Escrow Garnished. - As
soon as an Order of Garnishment is served
a. Proof of foreign exchange earnings issued upon the Administration/Bank, and the same
by the Central Bank; is correspondingly earmarked, the cash
bond/deposit in escrow of an agency shall no
b. Surety bond duly renewed or revalidated; longer be considered sufficient. The
Administration shall forthwith serve upon the
c. Escrow agreement in the amount of agency a notice to replenish.
P200,000.00 with an accredited reputable
banking corporation to primarily answer for
valid and legal claims of recruited workers as Section 23. Replenishment of Cash or
a result of recruitment violations or money Surety Bonds/Deposit in Escrow. - Within
claims; fifteen (15) calendar days from date of
receipt of notice from the Administration that
d. Replenishment of the cash bond in case the bonds/deposit in escrow, or any part
such or any part thereof is garnished; thereof had been garnished, the agency
shall replenish the same. Failure to
e. Proof of financial capacity such as but not replenish such bonds/deposit in escrow
limited to verified financial statements for the within the said period shall cause the
suspension of the license.
Duman / Labor I / Prof. Battad / Page 24
 Section 24. Refund of Cash Bond/Release (a) To charge or accept, directly or indirectly,
of Deposit in Escrow. - A licensed agency any amount greater than that specified in the
which voluntarily surrenders its license shall schedule of allowable fees prescribed by the
be entitled to the refund of its deposited cash Secretary of Labor, or to make a worker pay
bond and release of the deposit in escrow, any amount greater than that actually
only after posting a surety bond of similar received by him as a loan or advance;
amount valid for four (4) years from
expiration of license. (b) To furnish or publish any false notice or
information or document in relation to
Section 25. Evaluation of Performance of recruitment or employment;
Agencies. - The Administration shall
undertake the annual evaluation and rating (c) To give any false notice, testimony,
of the performance of licensed agencies to information or document or commit any act
determine the merits of their continued of misrepresentation for the purpose of
participation in the overseas employment securing a license or authority under this
program taking into consideration Code.
compliance with laws and regulations and
such other criteria as it may deem proper.
(d) To induce or attempt to induce a worker
already employed to quit his employment in
Section 26. Classification and Ranking. - order to offer him to another unless the
The Administration may undertake the transfer is designed to liberate the worker
classification and ranking of agencies. In from oppressive terms and conditions of
recognition of exemplary performance, it employment;
may undertake schemes for incentives and
rewards.
(e) To influence or to attempt to influence
any person or entity not to employ any
worker who has not applied for employment
2) Workers’ Fees, Art. 32
through his agency;
ART. 32. Fees to be paid by workers. - Any
person applying with a private fee-charging (f) To engage in the recruitment or placement
employment agency for employment of workers in jobs harmful to public health or
assistance shall not be charged any fee until morality or to the dignity of the Republic of
he has obtained employment through its the Philippines;
efforts or has actually commenced
employment. Such fee shall be always (g) To obstruct or attempt to obstruct
covered with the appropriate receipt clearly inspection by the Secretary of Labor or by
showing the amount paid. The Secretary of his duly authorized representatives;
Labor shall promulgate a schedule of
allowable fees.
(h) To fail to file reports on the status of
employment, placement vacancies,
3) Reports/Employment Information, Arts. 33, 14 (d) remittance of foreign exchange earnings,
separation from jobs, departures and such
ART. 33. Reports on employment status. - other matters or information as may be
Whenever the public interest requires, the required by the Secretary of Labor.
Secretary of Labor may direct all persons or
entities within the coverage of this Title to
submit a report on the status of employment, (i) To substitute or alter employment
including job vacancies, details of job contracts approved and verified by the
requisitions, separation from jobs, wages, Department of Labor from the time of actual
other terms and conditions and other signing thereof by the parties up to and
employment data. including the periods of expiration of the
same without the approval of the Secretary
ART. 14. Employment promotion. - The of Labor;
Secretary of Labor shall have the power and
authority: (j) To become an officer or member of the
(d) To require any person, establishment, Board of any corporation engaged in travel
organization or institution to submit such agency or to be engaged directly or indirectly
employment information as may be in the management of a travel agency; and
prescribed by the Secretary of Labor.
(k) To withhold or deny travel documents
4) Prohibited Practices, Art. 34 from applicant workers before departure for
monetary or financial considerations other
than those authorized under this Code and
its implementing rules and regulations.
ART. 34. Prohibited practices. - It shall be
unlawful for any individual, entity, licensee,
or holder of authority: 5) Illegal Recruitment, Art. 38; Sec. 6, RA 8042

Duman / Labor I / Prof. Battad / Page 25

 ART. 38. Illegal recruitment. - (a) Any and act on violation of any provisions of this
recruitment activities, including the prohibited Title.
practices enumerated under Article 34 of this
Code, to be undertaken by non-licensees or 7) Joint and Several Liability of Agent and Principal, POEA
non-holders of authority, shall be deemed Rules, Book II, Rule II, Sec. 1 (f)
illegal and punishable under Article 39 of this
Code. The Department of Labor and
Employment or any law enforcement officer
Section 1. Requirements for Issuance of
may initiate complaints under this Article.
License. - Every applicant for license to
operate a private employment agency or
(b) Illegal recruitment when committed by a manning agency shall submit a written
syndicate or in large scale shall be application together with the following
considered an offense involving economic requirements:
sabotage and shall be penalized in
accordance with Article 39 hereof.
f. A verified undertaking stating that the
applicant:
Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three
(1) Shall select only medically and technically
(3) or more persons conspiring and/or
qualified recruits;
confederating with one another in carrying
out any unlawful or illegal transaction,
(2) Shall assume full and complete responsibility for
enterprise or scheme defined under the first
all claims and liabilities which may arise in
paragraph hereof. Illegal recruitment is
connection with the use of license;
deemed committed in large scale if
committed against three (3) or more persons
(3) Shall assume joint and solidary liability with the
individually or as a group.
employer for all claims and liabilities which may
arise in connection with the implementation of the
(c) The Secretary of Labor and Employment contract, including but not limited to payment of
or his duly authorized representatives shall wages, death and disability compensation and
have the power to cause the arrest and repatriation;
detention of such non-licensee or non-holder
of authority if after investigation it is (4) Shall guarantee compliance with the existing
determined that his activities constitute a labor and social legislations of the Philippines and
danger to national security and public order of the country of employment of recruited workers;
or will lead to further exploitation of job- and
seekers. The Secretary shall order the
search of the office or premises and seizure (5) Shall assume full and complete responsibility for
of documents, paraphernalia, properties and all acts of its officials, employees and
other implements used in illegal recruitment representatives done in connection with recruitment
activities and the closure of companies, and placement;
establishments and entities found to be
engaged in the recruitment of workers for
e. Jurisdiction
overseas employment, without having been
licensed or authorized to do so. 1) RTC over Criminal Action arising from Illegal Recruitment, RA
No. 8042, Sec. 9
6) Enforcement
SEC. 9. VENUE. - A criminal action arising from illegal
a) Regulatory Power, Art. 36 recruitment as defined herein shall be filed with the
Regional Trial Court of the province or city where the
offense was committed or where the offended party
ART. 36. Regulatory power. - The Secretary actually resides at the same time of the commission
of Labor shall have the power to restrict and of the offense: Provided, That the court where the
regulate the recruitment and placement criminal action is first filed shall acquire jurisdiction to
activities of all agencies within the coverage the exclusion of other courts. Provided, however, That
of this Title and is hereby authorized to issue the aforestated provisions shall also apply to those
orders and promulgate rules and regulations criminal actions that have already been filed in court
to carry out the objectives and implement the at the time of the effectivity of this Act.
provisions of this Title.
2) LA over Money Claims, RA 8042, Sec. 10

b) Rule-Making Power, Art. 36 SEC. 10. MONEY CLAIMS. -

Botwithstanding any provision of law to the
c) Visitorial Power, Art. 37 contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall
have the priginal and exclusive jurisdiction to
ART. 37. Visitorial Power. - The Secretary of hear and decide, within ninety (90) calendar
Labor or his duly authorized representatives days after filing of the complaint, the claims
may, at any time, inspect the premises, arising out of an employer-employee
books of accounts and records of any person relationship or by virtue of any law or
or entity covered by this Title, require it to contract involving Filipino workers for
submit reports regularly on prescribed forms, overseas deployment including claims for
Duman / Labor I / Prof. Battad / Page 26
actual, moral, exemplary and other forms of 3) POEA over Administrative Cases
damages.
a) Pre-employment Cases, Omnibus rules Impl. RA No.
The liability of the 8042, Sec. 28 (a)
principal/employer and the
recruitment/placement agency for any and all Sec. 28. Jurisdiction of the POEA. - The
claims under this section shall be joint and POEA shall exercise original and
several. This provisions shall be exclusive jurisdiction to hear and decide:
incorporated in the contract for overseas (a) all cases, which are administrative in
employment and shall be a condition character, involving or arising out of violations of
precedent for its approval. The performance rules and regulations relating to licensing and
bond to be filed by the registration of recruitment and employment
recruitment/placement agency, as provided agencies or entities; and
by law, shall be answerable for all money
claims or damages that may be awarded to b) Disciplinary Cases, Sec. 28 (b)
the workers. If the recruitment/placement (b) disciplinary action cases and other
agency is a juridical being, the corporate special cases, which are administrative in
officers and directors and partners as the character, involving employers,
case may be, shall themselves be jointly and principals, contracting partners and
solidarily liable with the corporation or Filipino migrant workers.
partnership for the aforesaid claims and
damages. 3. Public Sector Agencies
– Employment Offices, Art. 12 (f); 14 (a); Sec. 3,
Such liabilities shall continue Reorganizing POEA (EO No. 247); POEA Rules
during the entire period or duration of the
employment contract and shall not be ART. 12. Statement of objectives. - It is the policy of
affected by any substitution, amendment or the State:
modification made locally or in a foreign
country of the said contract. f) To strengthen the network of public
employment offices and rationalize the
Any compromise/amicable
participation of the private sector in the
settlement or voluntary agreement on money
recruitment and placement of workers, locally
claims inclusive of damages under this
and overseas, to serve national development
section shall be paid within four (4) months
objectives;
from the approval of the settlement by the
appropriate authority.
ART. 14. Employment promotion. - The Secretary of
In case of termination of overseas Labor shall have the power and authority:
employment without just, valid or authorized
cause as defined by law or contract, the
workers shall be entitled to the full (a) To organize and establish new
reimbursement of his placement fee with employment offices in addition to the existing
interest of twelve percent (12%) per annum, employment offices under the Department of
plus his salaries for the unexpired portion of Labor as the need arises;
his employment contract or for three (3)
months for every year of the unexpired term, EO No. 247, Sec. 3. Powers and Functions. - In the
whichever is less. pursuit of its mandate, the Administration shall have
the following powers and functions:
Non-compliance with the
mandatory periods for resolutions of cases
provided under this section shall subject the (a) Regulate private sector participation in
responsible officials to any or all of the the recruitment and overseas
following penalties: placement of workers by setting up a
licensing and registration system;
(a) The salary of any such official
who fails to render his decision or resolutions (b) Formulate and implement, in
within the prescribed period shall be, or coordination with appropriate entities
caused to be, withheld until the said official concerned, when necessary, a system
complies therewith; for promoting and monitoring the
overseas employment of Filipino
(b) Suspension for not more than
workers taking into consideration their
ninety (90) days; or
welfare and the domestic manpower
(c) Dismissal from the service with requirements;
disqualifications to hold any appointive public
office for five (5) years. (c) Protect the rights of Filipino workers
for overseas employment to fair and
Provided, however, that the equitable recruitment and employment
penalties herein provided shall be without practices and ensure their welfare;
prejudice to any liability which any such
official may have incurred under other (d) Exercise original and exclusive
existing laws or rules and regulations as a jurisdiction to hear and decide all claims
consequence of violating the provisions of arising out of an employer-employee
this paragraph. relationship or by virtue of any law or
contract involving Filipino workers for
Duman / Labor I / Prof. Battad / Page 27
overseas employment including the Budget and Management and other
disciplinary cases; and all pre- relevant government entities, in the
employment cases which are pursuit of its objectives. The
administrative in character involving or Administration shall also establish and
arising out of violation or requirement maintain joint projects with private
laws, rules and regulations including organizations, domestic or foreign, in
money claims arising therefrom, or the furtherance of its objectives.
violation of the conditions for issuance
of license or authority to recruit workers.
4. Sanctions, Arts. 35, 39 (a) (b) (c) (d) (e); RA
8042, Secs. 6 , 7, 10
All prohibited recruitment activities and
practices which are penal in character ART. 35. Suspension and/or cancellation of
as enumerated and defined under and license or authority. - The Minister of Labor
by virtue of existing laws, shall be shall have the power to suspend or cancel
prosecuted in the regular courts in close any license or authority to recruit employees
coordination with the appropriate for overseas employment for violation of
Departments and agencies concerned; rules and regulations issued by the Ministry
of Labor, the Overseas Employment
(e) Maintain a registry of skills for Development Board, or for violation of the
overseas placement; provisions of this and other applicable laws,
General Orders and Letters of Instructions.
(f) Recruit and place workers to service
the requirements for trained and
competent Filipino workers by foreign ART. 39. Penalties. - (a) The penalty of life
governments and their instrumentalities imprisonment and a fine of One Hundred
and such other employers as public Thousand Pesos (P1000,000.00) shall be
interest may require; imposed if illegal recruitment constitutes
economic sabotage as defined herein;
(g) Promote the development of skills
and careful selection of Filipino (b) Any licensee or holder of authority found
workers; violating or causing another to violate any
provision of this Title or its implementing
(h) Undertake overseas market rules and regulations shall, upon conviction
development activities for placement of thereof, suffer the penalty of imprisonment of
Filipino workers; not less than two years nor more than five
years or a fine of not less than P10,000 nor
(i) Secure the best terms and conditions more than P50,000, or both such
of employment of Filipino contract imprisonment and fine, at the discretion of
workers and ensure compliance the court;
therewith;

(j) Promote and protect the well-being (c) Any person who is neither a licensee nor
of Filipino workers overseas; a holder of authority under this Title found
violating any provision thereof or its
(k) Develop and implement programs implementing rules and regulations shall,
for the effective monitoring of returning upon conviction thereof, suffer the penalty of
contract workers, promoting their re- imprisonment of not less than four years nor
training and re-employment or their more than eight years or a fine of not less
smooth re-integration into the than P20,000 nor more than P100,000 or
mainstream of national economy in both such imprisonment and fine, at the
coordination with other government discretion of the court;
agencies;
(d) If the offender is a corporation,
(l) Institute a system for ensuring fair partnership, association or entity, the penalty
and speedy disposition of cases shall be imposed upon the officer or officers
involving violation or recruitment rules of the corporation, partnership, association
and regulations as well as violation of or entity responsible for violation; and if such
terms and conditions of overseas officer is an alien, he shall, in addition to the
employment; penalties herein prescribed, be deported
without further proceedings;
(m) Establish a system for speedy and
efficient enforcement of decisions laid (e) In every case, conviction shall cause and
down through the exercise of its carry the automatic revocation of the license
adjudicatory function; or authority and all the permits and privileges
granted to such person or entity under this
(n) Establish and maintain close Title, and the forfeiture of the cash and
relationship and enter into joint projects surety bonds in favor of the Overseas
with the Department of Foreign Affairs, Employment Development Board or the
Philippine Tourism Authority, Manila National Seamen Board, as the case may
International Airport Authority,
Department of Justice, Department of
Duman / Labor I / Prof. Battad / Page 28
 be, both of which are authorized to use the without the approval of the Department of Labor and
same exclusively to promote their objectives. Employment;
(j) For an officer or agent of a recruitment or
a. Local Employment, Art. 39 placement agency to become an officer or member of
the Board of any corporation engaged in travel
(SEE ABOVE)
agency or to be engaged directly on indirectly in the
management of a travel agency;
b. Overseas Employment, Art. 35; RA 8042,
Sec. 7 (k) To withhold or deny travel documents from
applicant workers before departure for monetary or
(SEE ABOVE FOR ART. 35) financial considerations other than those authorized
under the Labor Code and its implementing rules and
Sec. 6. DEFINITIONS. - For purposes of this Act, regulations;
illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, (l) Failure to actually deploy without valid reasons as
procuring workers and includes referring, contact determined by the Department of Labor and
services, promising or advertising for employment Employment; and
abroad, whether for profit or not, when undertaken by
a non-license or non-holder of authority contemplated (m) Failure to reimburse expenses incurred by the
under Article 13(f) of Presidential Decree No. 442, as workers in connection with his documentation and
amended, otherwise known as the Labor Code of the processing for purposes of deployment, in cases
Philippines. Provided, that such non-license or non- where the deployment does not actually take place
holder, who, in any manner, offers or promises for a without the worker's fault. Illegal recruitment when
fee employment abroad to two or more persons shall committed by a syndicate or in large scale shall be
be deemed so engaged. It shall likewise include the considered as offense involving economic sabotage.
following acts, whether committed by any persons, Illegal recruitment is deemed committed by a
whether a non-licensee, non-holder, licensee or syndicate carried out by a group of three (3) or more
holder of authority. persons conspiring or confederating with one another.
(a) To charge or accept directly or indirectly any It is deemed committed in large scale if committed
amount greater than the specified in the schedule of against three (3) or more persons individually or as a
allowable fees prescribed by the Secretary of Labor group.
and Employment, or to make a worker pay any The persons criminally liable for the above offenses
amount greater than that actually received by him as are the principals, accomplices and accessories. In
a loan or advance; case of juridical persons, the officers having control,
(b) To furnish or publish any false notice or management or direction of their business shall be
information or document in relation to recruitment or liable.
employment; SEC. 7. PENALTIES -
(c) To give any false notice, testimony, information or (a) Any person found guilty of illegal recruitment shall
document or commit any act of misrepresentation for suffer the penalty of imprisonment of not less than six
the purpose of securing a license or authority under (6) years and one (1) day but not more than twelve
the Labor Code; (12) years and a fine not less than two hundred
(d) To induce or attempt to induce a worker already thousand pesos (P200,000.00) nor more than five
employed to quit his employment in order to offer him hundred thousand pesos (P500,000.00).
another unless the transfer is designed to liberate a (b) The penalty of life imprisonment and a fine of not
worker from oppressive terms and conditions of less than five hundred thousand pesos (P500,000.00)
employment; nor more than one million pesos (P1,000,000.00)
(e) To influence or attempt to influence any persons or shall be imposed if illegal recruitment constitutes
entity not to employ any worker who has not applied economic sabotage as defined herein.
for employment through his agency; Provided, however, that the maximum penalty shall
(f) To engage in the recruitment of placement of be imposed if the person illegally recruited is less than
workers in jobs harmful to public health or morality or eighteen (18) years of age or committed by a non-
to dignity of the Republic of the Philippines; licensee or non-holder of authority.

(g) To obstruct or attempt to obstruct inspection by the SEC. 10. MONEY CLAIMS. - Notwithstanding any
Secretary of Labor and Employment or by his duly provision of law to the contrary, the Labor Arbiters of
authorized representative; the National Labor Relations Commission (NLRC)
shall have the priginal and exclusive jurisdiction to
(h) To fail to submit reports on the status of hear and decide, within ninety (90) calendar days
employment, placement vacancies, remittances of after filing of the complaint, the claims arising out of
foreign exchange earnings, separations from jobs, an employer-employee relationship or by virtue of any
departures and such other matters or information as law or contract involving Filipino workers for overseas
may be required by the Secretary of Labor and deployment including claims for actual, moral,
Employment; exemplary and other forms of damages.
(i) To substitute or alter to the prejudice of the worker, The liability of the principal/employer and
employment contracts approved and verified by the the recruitment/placement agency for any and all
Department of Labor and Employment from the time claims under this section shall be joint and several.
of actual signing thereof by the parties up to and This provisions shall be incorporated in the contract
including the period of the expiration of the same for overseas employment and shall be a condition
precedent for its approval. The performance bond to
Duman / Labor I / Prof. Battad / Page 29
 be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money
claims or damages that may be awarded to the
workers. If the recruitment/placement agency is a
juridical being, the corporate officers and directors
and partners as the case may be, shall themselves be
jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages.
Such liabilities shall continue during the
entire period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
Any compromise/amicable settlement or
voluntary agreement on money claims inclusive of
damages under this section shall be paid within four
6. Trafficking in Persons, RA 9208 and Rules and Regulations
(4) months from the approval of the settlement by the
Implementing RA 9208
appropriate authority.
In case of termination of overseas
employment without just, valid or authorized cause as Republic of the Philippines
defined by law or contract, the workers shall be Congress of the Philippines
entitled to the full reimbursement of his placement fee
Metro Manila
with interest of twelve percent (12%) per annum, plus
his salaries for the unexpired portion of his
employment contract or for three (3) months for every Twelfth Congress
year of the unexpired term, whichever is less. Second Regular Session
Non-compliance with the mandatory periods
for resolutions of cases provided under this section
shall subject the responsible officials to any or all of
the following penalties: Begun held in Metro Manila on Monday, the
(a) The salary of any such official who fails twenty-second day of July, two thousand two
to render his decision or resolutions within the
prescribed period shall be, or caused to be, withheld Republic Act No. 9208 May 26, 2003
until the said official complies therewith;
(b) Suspension for not more than ninety AN ACT TO INSTITUTE POLICIES TO
(90) days; or ELIMINATE TRAFFICKING IN PERSONS
(c) Dismissal from the service with ESPECIALLY WOMEN AND CHILDREN,
disqualifications to hold any appointive public office ESTABLISHING THE NECESSARY
for five (5) years. INSTITUTIONAL MECHANISMS FOR THE
Provided, however, that the penalties herein PROTECTION AND SUPPORT OF
provided shall be without prejudice to any liability TRAFFICKED PERSONS, PROVIDING
which any such official may have incurred under other PENALTIES FOR ITS VIOLATIONS, AND FOR
existing laws or rules and regulations as a OTHER
consequence of violating the provisions of this
paragraph.
Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress
5. Issues and Questions on Overseas Employment assembled:
Readings:
Section 1. Title. This Act shall be known as the
 Soriano, Ma. Teresa M., "Anti-Trafficking in Persons Act of 2003".
Implications of International Migration, A
Focus on the Philippine Experience , PLR, Vol 20. No. 2
(1996) Section 2. Declaration of Policy. � It is hereby
 King, Amelia M., Social and declared that the State values the dignity of
Economic Benefits and Costs, PLR, Vol. 9, No. 1 (1985). every human person and guarantees the respect
 Licuanan, Patricia B. Katas ng of individual rights. In pursuit of this policy, the
Saudi, a closer look. PLR Vol. 9, No. 1 (1985).
State shall give highest priority to the enactment
of measures and development of programs that
will promote human dignity, protect the people
from any threat of violence and exploitation,
eliminate trafficking in persons, and mitigate
pressures for involuntary migration and
servitude of persons, not only to support
trafficked persons but more importantly, to

Duman / Labor I / Prof. Battad / Page 30

ensure their recovery, rehabilitation and sexual intercourse or lascivious conduct
reintegration into the mainstream of society. in exchange for money, profit or any
other consideration.
It shall be a State policy to recognize the equal
rights and inherent human dignity of women and (d) Forced Labor and Slavery - refer to
men as enshrined in the United Nations the extraction of work or services from
Universal Declaration on Human Rights, United any person by means of enticement,
Nations Convention on the Rights of the Child, violence, intimidation or threat, use of
United Nations Convention on the Protection of force or coercion, including deprivation
Migrant Workers and their Families. United of freedom, abuse of authority or moral
Nations Convention Against Transnational ascendancy, debt-bondage or
Organized Crime Including its Protocol to deception.
Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children and (e) Sex Tourism - refers to a program
all other relevant and universally accepted organized by travel and tourism-related
human rights instruments and other international establishments and individuals which
conventions to which the Philippines is a consists of tourism packages or
signatory. activities, utilizing and offering escort
and sexual services as enticement for
Section 3. Definition of Terms. - As used in this tourists. This includes sexual services
Act: and practices offered during rest and
recreation periods for members of the
(a) Trafficking in Persons - refers to the military.
recruitment, transportation, transfer or
harboring, or receipt of persons with or (f) Sexual Exploitation - refers to
without the victim's consent or participation by a person in prostitution
knowledge, within or across national or the production of pornographic
borders by means of threat or use of materials as a result of being subjected
force, or other forms of coercion, to a threat, deception, coercion,
abduction, fraud, deception, abuse of abduction, force, abuse of authority,
power or of position, taking advantage debt bondage, fraud or through abuse of
of the vulnerability of the person, or, the a victim's vulnerability.
giving or receiving of payments or
benefits to achieve the consent of a (g) Debt Bondage - refers to the
person having control over another pledging by the debtor of his/her
person for the purpose of exploitation personal services or labor or those of a
which includes at a minimum, the person under his/her control as security
exploitation or the prostitution of others or payment for a debt, when the length
or other forms of sexual exploitation, and nature of services is not clearly
forced labor or services, slavery, defined or when the value of the
servitude or the removal or sale of services as reasonably assessed is not
organs. applied toward the liquidation of the
debt.
The recruitment, transportation, transfer,
harboring or receipt of a child for the (h) Pornography - refers to any
purpose of exploitation shall also be representation, through publication,
considered as "trafficking in persons" exhibition, cinematography, indecent
even if it does not involve any of the shows, information technology, or by
means set forth in the preceding whatever means, of a person engaged
paragraph. in real or simulated explicit sexual
activities or any representation of the
(b) Child - refers to a person below sexual parts of a person for primarily
eighteen (18) years of age or one who is sexual purposes.
over eighteen (18) but is unable to fully
take care of or protect himself/herself (i) Council - shall mean the Inter-Agency
from abuse, neglect, cruelty, Council Against Trafficking created
exploitation, or discrimination because under Section 20 of this Act.
of a physical or mental disability or
condition. Section 4. Acts of Trafficking in Persons. - It
shall be unlawful for any person, natural or
(c) Prostitution - refers to any act, juridical, to commit any of the following acts:
transaction, scheme or design involving
the use of a person by another, for
Duman / Labor I / Prof. Battad / Page 31
 (a) To recruit, transport, transfer; harbor, (a) To knowingly lease or sublease, use
provide, or receive a person by any or allow to be used any house, building
means, including those done under the or establishment for the purpose of
pretext of domestic or overseas promoting trafficking in persons;
employment or training or
apprenticeship, for the purpose of (b) To produce, print and issue or
prostitution, pornography, sexual distribute unissued, tampered or fake
exploitation, forced labor, slavery, counseling certificates, registration
involuntary servitude or debt bondage; stickers and certificates of any
government agency which issues these
(b) To introduce or match for money, certificates and stickers as proof of
profit, or material, economic or other compliance with government regulatory
consideration, any person or, as and pre-departure requirements for the
provided for under Republic Act No. purpose of promoting trafficking in
6955, any Filipino woman to a foreign persons;
national, for marriage for the purpose of
acquiring, buying, offering, selling or (c) To advertise, publish, print, broadcast
trading him/her to engage in prostitution, or distribute, or cause the
pornography, sexual exploitation, forced advertisement, publication, printing,
labor, slavery, involuntary servitude or broadcasting or distribution by any
debt bondage; means, including the use of information
technology and the internet, of any
(c) To offer or contract marriage, real or brochure, flyer, or any propaganda
simulated, for the purpose of acquiring, material that promotes trafficking in
buying, offering, selling, or trading them persons;
to engage in prostitution, pornography,
sexual exploitation, forced labor or (d) To assist in the conduct of
slavery, involuntary servitude or debt misrepresentation or fraud for purposes
bondage; of facilitating the acquisition of
clearances and necessary exit
(d) To undertake or organize tours and documents from government agencies
travel plans consisting of tourism that are mandated to provide pre-
packages or activities for the purpose of departure registration and services for
utilizing and offering persons for departing persons for the purpose of
prostitution, pornography or sexual promoting trafficking in persons;
exploitation;
(e) To facilitate, assist or help in the exit
(e) To maintain or hire a person to and entry of persons from/to the country
engage in prostitution or pornography; at international and local airports,
territorial boundaries and seaports who
(f) To adopt or facilitate the adoption of are in possession of unissued, tampered
persons for the purpose of prostitution, or fraudulent travel documents for the
pornography, sexual exploitation, forced purpose of promoting trafficking in
labor, slavery, involuntary servitude or persons;
debt bondage;
(f) To confiscate, conceal, or destroy the
(g) To recruit, hire, adopt, transport or passport, travel documents, or personal
abduct a person, by means of threat or documents or belongings of trafficked
use of force, fraud, deceit, violence, persons in furtherance of trafficking or to
coercion, or intimidation for the purpose prevent them from leaving the country or
of removal or sale of organs of said seeking redress from the government or
person; and appropriate agencies; and

(h) To recruit, transport or adopt a child (g) To knowingly benefit from, financial
to engage in armed activities in the or otherwise, or make use of, the labor
Philippines or abroad. or services of a person held to a
condition of involuntary servitude, forced
labor, or slavery.
Section 5. Acts that Promote Trafficking in
Persons. - The following acts which promote or
facilitate trafficking in persons, shall be unlawful: Section 6. Qualified Trafficking in Persons. -
The following are considered as qualified
trafficking:

Duman / Labor I / Prof. Battad / Page 32

 (a) When the trafficked person is a child; In cases when prosecution or trial is conducted
behind closed-doors, it shall be unlawful for any
(b) When the adoption is effected editor, publisher, and reporter or columnist in
through Republic Act No. 8043, case of printed materials, announcer or producer
otherwise known as the "Inter-Country in case of television and radio, producer and
Adoption Act of 1995" and said adoption director of a film in case of the movie industry, or
is for the purpose of prostitution, any person utilizing tri-media facilities or
pornography, sexual exploitation, forced information technology to cause publicity of any
labor, slavery, involuntary servitude or case of trafficking in persons.
debt bondage;
Section 8. Prosecution of Cases. - Any person
(c) When the crime is committed by a who has personal knowledge of the commission
syndicate, or in large scale. Trafficking is of any offense under this Act, the trafficked
deemed committed by a syndicate if person, the parents, spouse, siblings, children or
carried out by a group of three (3) or legal guardian may file a complaint for
more persons conspiring or trafficking.
confederating with one another. It is
deemed committed in large scale if Section 9. Venue. - A criminal action arising
committed against three (3) or more from violation of this Act shall be filed where the
persons, individually or as a group; offense was committed, or where any of its
elements occurred, or where the trafficked
(d) When the offender is an ascendant, person actually resides at the time of the
parent, sibling, guardian or a person commission of the offense: Provided, That the
who exercises authority over the court where the criminal action is first filed shall
trafficked person or when the offense is acquire jurisdiction to the exclusion of other
committed by a public officer or courts.
employee;
Section 10. Penalties and Sanctions. - The
(e) When the trafficked person is following penalties and sanctions are hereby
recruited to engage in prostitution with established for the offenses enumerated in this
any member of the military or law Act:
enforcement agencies;
(a) Any person found guilty of
(f) When the offender is a member of the committing any of the acts enumerated
military or law enforcement agencies; in Section 4 shall suffer the penalty of
and imprisonment of twenty (20) years and a
fine of not less than One million pesos
(P1,000,000.00) but not more than Two
(g) When by reason or on occasion of
million pesos (P2,000,000.00);
the act of trafficking in persons, the
offended party dies, becomes insane,
suffers mutilation or is afflicted with (b) Any person found guilty of
Human Immunodeficiency Virus (HIV) or committing any of the acts enumerated
the Acquired Immune Deficiency in Section 5 shall suffer the penalty of
Syndrome (AIDS). imprisonment of fifteen (15) years and a
fine of not less than Five hundred
thousand pesos (P500,000.00) but not
Section 6. Confidentiality. - At any stage of the
more than One million pesos
investigation, prosecution and trial of an offense
(P1,000,000.00);
under this Act, law enforcement officers,
prosecutors, judges, court personnel and
medical practitioners, as well as parties to the (c) Any person found guilty of qualified
case, shall recognize the right to privacy of the trafficking under Section 6 shall suffer
trafficked person and the accused. Towards this the penalty of life imprisonment and a
end, law enforcement officers, prosecutors and fine of not less than Two million pesos
judges to whom the complaint has been referred (P2,000,000.00) but not more than Five
may, whenever necessary to ensure a fair and million pesos (P5,000,000.00);
impartial proceeding, and after considering all
circumstances for the best interest of the parties, (d) Any person who violates Section 7
order a closed-door investigation, prosecution or hereof shall suffer the penalty of
trial. The name and personal circumstances of imprisonment of six (6) years and a fine
the trafficked person or of the accused, or any of not less than Five hundred thousand
other information tending to establish their pesos (P500,000.00) but not more than
identities and such circumstances or information One million pesos (P1,000,000.00);
shall not be disclosed to the public.
Duman / Labor I / Prof. Battad / Page 33
 (e) If the offender is a corporation, determined by the court and a fine of
partnership, association, club, Fifty thousand pesos (P50,000.00); and
establishment or any juridical person,
the penalty shall be imposed upon the (b) Second and subsequent offenses -
owner, president, partner, manager, imprisonment of one (1) year and a fine
and/or any responsible officer who of One hundred thousand pesos
participated in the commission of the (P100,000.00).
crime or who shall have knowingly
permitted or failed to prevent its Section 12. Prescriptive Period. - Trafficking
commission; cases under this Act shall prescribe in ten (10)
years: Provided, however, That trafficking cases
(f) The registration with the Securities committed by a syndicate or in a large scale as
and Exchange Commission (SEC) and defined under Section 6 shall prescribe in twenty
license to operate of the erring agency, (20) years.
corporation, association, religious group,
tour or travel agent, club or The prescriptive period shall commence to run
establishment, or any place of from the day on which the trafficked person is
entertainment shall be cancelled and delivered or released from the conditions of
revoked permanently. The owner, bondage and shall be interrupted by the filing of
president, partner or manager thereof the complaint or information and shall
shall not be allowed to operate similar commence to run again when such proceedings
establishments in a different name; terminate without the accused being convicted
or acquitted or are unjustifiably stopped for any
(g) If the offender is a foreigner, he shall reason not imputable to the accused.
be immediately deported after serving
his sentence and be barred permanently Section 13. Exemption from Filing Fees. - When
from entering the country; the trafficked person institutes a separate civil
action for the recovery of civil damages, he/she
(h) Any employee or official of shall be exempt from the payment of filing fees.
government agencies who shall issue or
approve the issuance of travel exit Section 14. Confiscation and Forfeiture of the
clearances, passports, registration Proceeds and Instruments Derived from
certificates, counseling certificates, Trafficking in Persons. - In addition to the
marriage license, and other similar penalty imposed for the violation of this Act, the
documents to persons, whether juridical court shall order the confiscation and forfeiture,
or natural, recruitment agencies, in favor of the government, of all the proceeds
establishments or other individuals or and properties derived from the commission of
groups, who fail to observe the the crime, unless they are the property of a third
prescribed procedures and the person not liable for the unlawful act; Provided,
requirement as provided for by laws, however, That all awards for damages shall be
rules and regulations, shall be held taken from the personal and separate properties
administratively liable, without prejudice of the offender; Provided, further, That if such
to criminal liability under this Act. The properties are insufficient, the balance shall be
concerned government official or taken from the confiscated and forfeited
employee shall, upon conviction, be properties.
dismissed from the service and be
barred permanently to hold public office.
His/her retirement and other benefits When the proceeds, properties and instruments
shall likewise be forfeited; and of the offense have been destroyed, diminished
in value or otherwise rendered worthless by any
act or omission, directly or indirectly, of the
(i) Conviction by final judgment of the offender, or it has been concealed, removed,
adopter for any offense under this Act converted or transferred to prevent the same
shall result in the immediate rescission from being found or to avoid forfeiture or
of the decree of adoption. confiscation, the offender shall be ordered to
pay the amount equal to the value of the
Section 11. Use of Trafficked Persons. - Any proceeds, property or instruments of the offense.
person who buys or engages the services of
trafficked persons for prostitution shall be Section 15. Trust Fund. - All fines imposed
penalized as follows: under this Act and the proceeds and properties
forfeited and confiscated pursuant to Section 14
(a) First offense - six (6) months of hereof shall accrue to a Trust Fund to be
community service as may be administered and managed by the Council to be
used exclusively for programs that will prevent
Duman / Labor I / Prof. Battad / Page 34
acts of trafficking and protect, rehabilitate, (b) Department of Social Welfare and
reintegrate trafficked persons into the Development (DSWD) - shall implement
mainstream of society. Such programs shall rehabilitative and protective programs
include, but not limited to, the following: for trafficked persons. It shall provide
counseling and temporary shelter to
(a) Provision for mandatory services set trafficked persons and develop a system
forth in Section 23 of this Act; for accreditation among NGOs for
purposes of establishing centers and
programs for intervention in various
(b) Sponsorship of a national research
levels of the community.
program on trafficking and
establishment of a data collection
system for monitoring and evaluation (c) Department of Labor and
purposes; Employment (DOLE) - shall ensure the
strict implementation and compliance
with the rules and guidelines relative to
(c) Provision of necessary technical and
the employment of persons locally and
material support services to appropriate
overseas. It shall likewise monitor,
government agencies and non-
document and report cases of trafficking
government organizations (NGOs);
in persons involving employers and
labor recruiters.
(d) Sponsorship of conferences and
seminars to provide venue for
(d) Department of Justice (DOJ) - shall
consensus building amongst the public,
ensure the prosecution of persons
the academe, government, NGOs and
international organizations; and accused of trafficking and designate and
train special prosecutors who shall
handle and prosecute cases of
(e) Promotion of information and trafficking. It shall also establish a
education campaign on trafficking. mechanism for free legal assistance for
trafficked persons, in coordination with
Section 16. Programs that Address Trafficking the DSWD, Integrated Bar of the
in Persons. - The government shall establish Philippines (IBP) and other NGOs and
and implement preventive, protective and volunteer groups.
rehabilitative programs for trafficked persons.
For this purpose, the following agencies are (e) National Commission on the Role of
hereby mandated to implement the following Filipino Women (NCRFW) - shall
programs; actively participate and coordinate in the
formulation and monitoring of policies
(a) Department of Foreign Affairs (DFA) addressing the issue of trafficking in
- shall make available its resources and persons in coordination with relevant
facilities overseas for trafficked persons government agencies. It shall likewise
regardless of their manner of entry to advocate for the inclusion of the issue of
the receiving country, and explore trafficking in persons in both its local and
means to further enhance its assistance international advocacy for women's
in eliminating trafficking activities issues.
through closer networking with
government agencies in the country and (f) Bureau of Immigration (BI) - shall
overseas, particularly in the formulation strictly administer and enforce
of policies and implementation of immigration and alien administration
relevant programs. laws. It shall adopt measures for the
apprehension of suspected traffickers
The DFA shall take necessary measures both at the place of arrival and
for the efficient implementation of the departure and shall ensure compliance
Machine Readable Passports to protect by the Filipino fiancés/fiancées and
the integrity of Philippine passports, spouses of foreign nationals with the
visas and other travel documents to guidance and counseling requirement
reduce the incidence of trafficking as provided for in this Act.
through the use of fraudulent
identification documents. (g) Philippine National Police (PNP) -
shall be the primary law enforcement
It shall establish and implement a pre- agency to undertake surveillance,
marriage, on-site and pre-departure investigation and arrest of individuals or
counseling program on intermarriages. persons suspected to be engaged in
trafficking. It shall closely coordinate
Duman / Labor I / Prof. Battad / Page 35
 with various law enforcement agencies Section 18. Preferential Entitlement Under the
to secure concerted efforts for effective Witness Protection Program. - Any provision of
investigation and apprehension of Republic Act No. 6981 to the contrary
suspected traffickers. It shall also notwithstanding, any trafficked person shall be
establish a system to receive complaints entitled to the witness protection program
and calls to assist trafficked persons and provided therein.
conduct rescue operations.
Section 19. Trafficked Persons Who are
(h) Philippine Overseas Employment Foreign Nationals. - Subject to the guidelines
Administration (POEA) - shall implement issued by the Council, trafficked persons in the
an effective pre-employment orientation Philippines who are nationals of a foreign
seminars and pre-departure counseling country shall also be entitled to appropriate
programs to applicants for overseas protection, assistance and services available to
employment. It shall likewise formulate a trafficked persons under this Act: Provided, That
system of providing free legal they shall be permitted continued presence in
assistance to trafficked persons. the Philippines for a length of time prescribed by
the Council as necessary to effect the
(i) Department of the Interior and Local prosecution of offenders.
Government (DILG) - shall institute a
systematic information and prevention Section 20. Inter-Agency Council Against
campaign and likewise maintain a Trafficking. - There is hereby established an
databank for the effective monitoring, Inter-Agency Council Against Trafficking, to be
documentation and prosecution of cases composed of the Secretary of the Department of
on trafficking in persons. Justice as Chairperson and the Secretary of the
Department of Social Welfare and Development
(j) Local government units (LGUs) - shall as Co-Chairperson and shall have the following
monitor and document cases of as members:
trafficking in persons in their areas of
jurisdiction, effect the cancellation of (a) Secretary, Department of Foreign
licenses of establishments which violate Affairs;
the provisions of this Act and ensure
effective prosecution of such cases. (b) Secretary, Department of Labor and
They shall also undertake an Employment;
information campaign against trafficking
in persons through the establishment of (c) Administrator, Philippine Overseas
the Migrants Advisory and Information Employment Administration;
Network (MAIN) desks in municipalities
or provinces in coordination with DILG,
Philippine Information Agency (PIA), (d) Commissioner, Bureau of
Commission on Filipinos Overseas Immigration;
(CFO), NGOs and other concerned
agencies. They shall encourage and (e) Director-General, Philippine National
support community based initiatives Police;
which address the trafficking in persons.
(f) Chairperson, National Commission
In implementing this Act, the agencies on the Role of Filipino Women; and
concerned may seek and enlist the
assistance of NGOs, people's (g) Three (3) representatives from
organizations (Pos), civic organizations NGOs, who shall be composed of one
and other volunteer groups. (1) representative each from among the
sectors representing women, overseas
Section 17. Legal Protection to Trafficked Filipino workers (OFWs) and children,
Persons. - Trafficked persons shall be with a proven record of involvement in
recognized as victims of the act or acts of the prevention and suppression of
trafficking and as such shall not be penalized for trafficking in persons. These
crimes directly related to the acts of trafficking representatives shall be nominated by
enumerated in this Act or in obedience to the the government agency representatives
order made by the trafficker in relation thereto. of the Council, for appointment by the
In this regard, the consent of a trafficked person President for a term of three (3) years.
to the intended exploitation set forth in this Act
shall be irrelevant. The members of the Council may
designate their permanent
representatives who shall have a rank
Duman / Labor I / Prof. Battad / Page 36
 not lower than an assistant secretary or established under Republic Act No.
its equivalent to meetings, and shall 8042, otherwise known as the "Migrant
receive emoluments as may be Workers and Overseas Filipinos Act of
determined by the Council in 1995" with data on cases of trafficking in
accordance with existing budget and persons, and ensure that the proper
accounting, rules and regulations. agencies conduct a continuing research
and study on the patterns and scheme
Section 21. Functions of the Council. - The of trafficking in persons which shall form
Council shall have the following powers and the basis for policy formulation and
functions: program direction;

(a) Formulate a comprehensive and (k) Develop the mechanism to ensure

integrated program to prevent and the timely, coordinated, and effective
suppress the trafficking in persons; response to cases of trafficking in
persons;
(b) Promulgate rules and regulations as
may be necessary for the effective (l) Recommend measures to enhance
implementation of this Act; cooperative efforts and mutual
assistance among foreign countries
through bilateral and/or multilateral
(c) Monitor and oversee the strict
arrangements to prevent and suppress
implementation of this Act;
international trafficking in persons;
(d) Coordinate the programs and
(m) Coordinate with the Department of
projects of the various member
Transportation and Communications
agencies to effectively address the
(DOTC), Department of Trade and
issues and problems attendant to
Industry (DTI), and other NGOs in
trafficking in persons;
monitoring the promotion of
advertisement of trafficking in the
(e) Coordinate the conduct of massive internet;
information dissemination and campaign
on the existence of the law and the
(n) Adopt measures and policies to
various issues and problems attendant
protect the rights and needs of trafficked
to trafficking through the LGUs,
persons who are foreign nationals in the
concerned agencies, and NGOs;
Philippines;
(f) Direct other agencies to immediately
(o) Initiate training programs in
respond to the problems brought to their
identifying and providing the necessary
attention and report to the Council on
intervention or assistance to trafficked
action taken;
persons; and
(g) Assist in filing of cases against
(p) Exercise all the powers and perform
individuals, agencies, institutions or
such other functions necessary to attain
establishments that violate the
the purposes and objectives of this Act.
provisions of this Act;

Section 22. Secretariat to the Council. - The

(h) Formulate a program for the
Department of Justice shall establish the
reintegration of trafficked persons in
necessary Secretariat for the Council.
cooperation with DOLE, DSWD,
Technical Education and Skills
Development Authority (TESDA), Section 23. Mandatory Services to Trafficked
Commission on Higher Education Persons. - To ensure recovery, rehabilitation and
(CHED), LGUs and NGOs; reintegration into the mainstream of society,
concerned government agencies shall make
available the following services to trafficked
(i) Secure from any department, bureau,
persons:
office, agency, or instrumentality of the
government or from NGOs and other
civic organizations such assistance as (a) Emergency shelter or appropriate
may be needed to effectively implement housing;
this Act;
(b) Counseling;
(j) Complement the shared government
information system for migration
Duman / Labor I / Prof. Battad / Page 37
 (c) Free legal services which shall Section 26. Extradition. - The DOJ, in
include information about the victims' consultation with DFA, shall endeavor to include
rights and the procedure for filing offenses of trafficking in persons among
complaints, claiming compensation and extraditable offenses.
such other legal remedies available to
them, in a language understood by the Section 27. Reporting Requirements. - The
trafficked person; Council shall submit to the President of the
Philippines and to Congress an annual report of
(d) Medical or psychological services; the policies, programs and activities relative to
the implementation of this Act.
(e) Livelihood and skills training; and
Section 28. Funding. - The heads of the
(f) Educational assistance to a trafficked departments and agencies concerned shall
child. immediately include in their programs and issue
such rules and regulations to implement the
provisions of this Act, the funding of which shall
Sustained supervision and follow through
be included in the annual General
mechanism that will track the progress of
Appropriations Act.
recovery, rehabilitation and reintegration of the
trafficked persons shall be adopted and carried
out. Section 29. Implementing Rules and
Regulations. - The Council shall promulgate the
necessary implementing rules and regulations
Section 24. Other Services for Trafficked
within sixty (60) days from the effectivity of this
Persons. -
Act.
(a) Legal Assistance. - Trafficked
Section 30. Non-restriction of Freedom of
persons shall be considered under the
Speech and of Association, Religion and the
category "Overseas Filipino in Distress"
Right to Travel. - Nothing in this Act shall be
and may avail of the legal assistance
interpreted as a restriction of the freedom of
created by Republic Act No. 8042,
speech and of association, religion and the right
subject to the guidelines as provided by
to travel for purposes not contrary to law as
law.
guaranteed by the Constitution.
(b) Overseas Filipino Resource Centers.
Section 31. Separability Clause. - If, for any
- The services available to overseas
reason, any section or provision of this Act is
Filipinos as provided for by Republic Act
held unconstitutional or invalid, the other
No. 8042 shall also be extended to
sections or provisions hereof shall not be
trafficked persons regardless of their
affected thereby.
immigration status in the host country.

Section 32. Repealing clause. - All laws,

(c) The Country Team Approach. - The
presidential decrees, executive orders and rules
country team approach under Executive
and regulations, or parts thereof, inconsistent
Order No. 74 of 1993, shall be the
with the provisions of this Act are hereby
operational scheme under which
repealed or modified accordingly: Provided, That
Philippine embassies abroad shall
this Act shall not in any way amend or repeal the
provide protection to trafficked persons
provision of Republic Act No. 7610, otherwise
insofar as the promotion of their welfare,
known as the "Special Protection of Children
dignity and fundamental rights are
Against Child Abuse, Exploitation and
concerned.
Discrimination Act".
Section 25. Repatriation of Trafficked Persons. -
Section 33. Effectivity. - This Act shall take
The DFA, in coordination with DOLE and other
effect fifteen (15) days from the date of its
appropriate agencies, shall have the primary
complete publication in at least two (2)
responsibility for the repatriation of trafficked
newspapers of general circulation.
persons, regardless of whether they are
documented or undocumented.
RULES AND REGULATIONS
If, however, the repatriation of the trafficked IMPLEMENTING REPUBLIC ACT NO.
persons shall expose the victims to greater risks, 9208, OTHERWISE KNOWN AS THE
the DFA shall make representation with the host “ANTI-TRAFFICKING IN PERSONS ACT
government for the extension of appropriate OF 2003”
residency permits and protection, as may be Pursuant to the authority of the Inter-Agency
legally permissible in the host country. Council Against Trafficking (IACAT) under
Duman / Labor I / Prof. Battad / Page 38
Section 29 of Republic Act No. 9208 otherwise the Elimination of the Worst Forms
known as the “Anti-Trafficking in Persons Act of of Child Labor); and
2003”, the following (viii) All other relevant and universally
rules and regulations are hereby promulgated to accepted human rights instruments
implement the provisions of said Act: and other international conventions
to which the Philippines is a State
Article I Party. In all actions concerning
GENERAL PROVISIONS children, their best interests shall be
Sec. 1. Title. These rules and regulations shall the paramount consideration.
be known and cited as “The Rules and
Regulations Implementing the Anti-Trafficking in Sec. 4. Construction. These rules and
Persons Act of 2003”. regulations shall be liberally construed in favor
of the trafficked persons to promote their human
Sec. 2. Purpose. These rules and regulations dignity; ensure their recovery, rehabilitation and
are hereby promulgated to institute policies, reintegration into the mainstream of society;
establish the institutional mechanism for the eliminate trafficking in persons; and achieve the
support and protection of trafficked persons and objectives of the Act.
prescribe the procedures and guidelines for the
implementation of Republic Act No. 9208 in
order to facilitate compliance therewith and Article II
achieve the objectives thereof. DEFINITION OF TERMS
Sec. 5. Definition of Terms. As used in these
Sec. 3. Declaration of State Policy. The State rules and regulations, unless the context
values the dignity of every human person and otherwise requires, the following terms shall be
guarantees the respect for individual rights. understood to mean:
Towards this end, the State shall give the
highest priority to the enactment of measures (a) Act — refers to Republic Act No. 9208,
and development of programs that will promote otherwise
human dignity, protect the people from any known as the “Anti-Trafficking in Persons Act of
threat of violence and exploitation, eliminate 2003”;
trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons, (b) Council — refers to the Inter-Agency Council
not only to support trafficked persons but more Against Trafficking (IACAT) created under
importantly, to ensure Section 20 of the Act;
their recovery, rehabilitation and reintegration
into the mainstream of society. (c) Trafficking in Persons — refers to the
recruitment, transportation, transfer or harboring,
The State also recognizes the equal rights and or receipt of persons, with or without the victim’s
inherent human dignity of women and men, as consent or knowledge, within or across national
well as the rights of children, as enshrined and borders by means of threat or use of force, or
guaranteed in the following international other forms of coercion, abduction, fraud,
instruments: deception, abuse of power or of position, taking
(i) Universal Declaration on Human advantage of the vulnerability of the person, or,
Rights; the giving or receiving of payments or benefits to
(ii) Convention for the Suppression of achieve the consent of a person having control
the Traffic in Persons and over another person for the purpose of
Exploitation of the Prostitution of exploitation which includes at a minimum, the
Others; exploitation or the prostitution of others or other
(iii) Convention on the Elimination of All forms of sexual exploitation, forced labor or
Forms of Discrimination Against services, slavery, servitude or the removal or
Women; sale of organs.
(iv) Convention on the Rights of the
Child and itsOptional Protocols; The recruitment, transportation, transfer,
(v) Convention on the Protection of harboring or receipt of a child for the purpose of
Migrant Workers and Members of exploitation
their Families; shall also be considered as “trafficking in
(vi) Convention Against Transnational persons” even if it does not involve any of the
OrganizedCrimes including its means set forth in the preceding paragraph.
Protocol to Prevent,Suppress and
Punish Trafficking in Persons, (d) Child — refers to a person below eighteen
Especially Women and Children; (18) years of age or one who is over eighteen
(vii) ILO Convention No. 182 (18) but is unable to fully take care of or protect
(Convention Concerning the himself/herself from abuse, neglect, cruelty,
Prohibition and Immediate Action for

Duman / Labor I / Prof. Battad / Page 39

exploitation, or discrimination because of a
physical or mental disability or condition; Sec. 6. Creation. The Inter-Agency Council
Against Trafficking (IACAT) shall be established
(e) Prostitution — refers to any act, transaction, which shall be primarily tasked to coordinate,
scheme or design involving the use of a person monitor and oversee the implementation of the
by another, for sexual intercourse or lascivious Act.
conduct in exchange for money, profit or any
other consideration; Sec. 7. Composition. The Council shall be
composed of the following:
(f) Forced Labor and Slavery — refer to the
extraction of work or services from any person (a) Secretary, Department of Justice (DOJ) as
by means of enticement, violence, intimidation Chairperson;
or threat, use of force or coercion, including (b) Secretary, Department of Social Welfare and
deprivation of freedom, abuse of authority or Development (DSWD) as Co-Chairperson;
moral ascendancy, debt-bondage or deception; (c) Secretary, Department of Foreign Affairs
(DFA) as Member;
(g) Sex Tourism — refers to a program (d) Secretary, Department of Labor and
organized by travel and tourism-related Employment
establishments and individuals which consists (DOLE) as Member;
of tourism packages or activities, utilizing and (e) Administrator, Philippine Overseas
offering escort and sexual services as Employment
enticement for tourists. This includes sexual Administration (POEA) as Member;
services and practices offered during rest and (f) Commissioner, Bureau of Immigration (BI) as
recreation periods for members of the military; Member;
(g) Director-General, Philippine National Police
(h) Sexual Exploitation — refers to participation (PNP) as Member;
by a person in prostitution or the production of (h) Chairperson, National Commission on the
pornographic Role of Filipino Women (NCRFW) as Member;
materials as a result of being subjected to a (i) One (1) representative from an NGO
threat, deception, coercion, abduction, force, representingthe women sector as Member;
abuse of authority, debt bondage, fraud or (j) One (1) representative from an NGO
through abuse of a victim’s vulnerability; representing he Overseas Filipino Workers
(OFWs) sector as Member; and
(i) Debt Bondage — refers to the pledging by the (k) One (1) representative from an NGO
debtor of his/her personal services or labor or representing he children sector as Member.
those of a person under his/her control as
security or payment for a debt, when the length The members of the Council may designate their
and nature of services is not clearly defined or permanent representatives who shall have a
when the value of the services as reasonably rank not lower than an Assistant Secretary or its
assessed is not applied toward the liquidation of equivalent to attend the meetings of the Council.
the debt;
Sec. 8. Qualifications, Selection and
(j) Pornography — refers to any representation, Appointment of NGO and its
through publication, exhibition, cinematography, Representatives. The NGOs, with national and
indecent international networks, and its representatives to
shows, information technology, or by whatever the Council must have a proven track record of
means, of a person engaged in real or simulated involvement in the prevention and suppression
explicit sexual activities or any representation of of trafficking in persons. They shall be
the sexual parts of a person primarily for sexual nominated by any
purposes; and of the government agency representatives of the
Council and shall be selected by majority vote
(k) Involuntary Servitude — refers to a condition thereof and endorsed to the President. They
of enforced, compulsory service induced by shall be appointed by the President for a term of
means of any scheme, plan or pattern, intended three (3) years.
to cause a person to believe that, if the person
did not enter into or continue in such condition, Sec. 9. Functions of the Council. The Council
that person or another person would suffer shall have the following powers and functions:
serious harm or other forms of abuse or physical
restraint, or the abuse or threatened abuse of (a) Formulate a comprehensive and integrated
the legal process. program to prevent and suppress the trafficking
in persons;
Article III (b) Promulgate rules and regulations as may be
THE INTER-AGENCY COUNCIL necessary for the effective implementation of the
AGAINST TRAFFICKING (IACAT) Act;

Duman / Labor I / Prof. Battad / Page 40

(c) Monitor and oversee the strict Sec. 10. Reportorial Function. Within sixty (60)
implementation of the Act; days after the closing of each calendar year, the
(d) Coordinate the programs and projects of the Council shall submit to the Office of the
various member agencies to effectively address President a comprehensive report on the actions
the issues and problems attendant to trafficking and programs
in persons; taken by the Council relative to and concerning
(e) Coordinate the conduct of massive the implementation of the Act.
information dissemination and campaign on the
existence of the law and the various issues and Sec. 11. Meetings of the Council. The Council
problems attendant to trafficking through the shall meet regularly at least once a month.
local government units (LGUs), concerned Special meetings may be called by the Chair as
agencies, and NGOs; the need arises. Majority of the members of the
(f) Direct other agencies to immediately respond Council
to the problems brought to their attention and shall constitute a quorum to transact business.
report to the Council on action taken;
(g) Assist in filing of cases against individuals, Sec. 12. Honoraria or Emoluments. The
agencies, institutions or establishments that Members of the Council or their designated
violate the permanent representatives shall receive
provisions of the Act; honoraria or emoluments as may be determined
(h) Formulate a program for the reintegration of by the Council in
trafficked persons in cooperation with DOLE, accordance with existing budget and accounting
DSWD, Technical Education and Skills rules and regulations.
Development Authority (TESDA), Commission
on Higher Education (CHED), LGUs and NGOs; Sec. 13. Implementation of the Law at Sub-
(i) Secure from any department, bureau, office, National and Local Levels. The Council shall,
agency, or instrumentality of the government or as far as practicable, develop mechanisms to
from NGOs ensure the implementation of the law and these
and other civic organizations such assistance as rules and regulations at the sub-national and
may be needed to effectively implement the Act; local levels
(j) Complement the shared government
information system for migration established Article IV
under Republic Act No. 8042, otherwise known SECRETARIAT
as the “Migrant Workers and Overseas Filipinos
Act of 1995” with data on cases of trafficking in SEC. 14. Organization. The Department of
persons, and ensure that the proper agencies Justice shall establish a Secretariat to assist the
conduct a continuing research and study on the Council in the performance of its functions. The
patterns and scheme of trafficking in persons Secretary of Justice shall determine the
which shall form the basis for policy formulation organizational structure and staffing pattern of
and program direction; the Secretariat.
(k) Develop the mechanism to ensure the timely
coordinated and effective response to cases of Sec. 15. Functions. The Secretariat shall have
trafficking in the following functions:
persons; (a) Coordinate and monitor, under the direction
(l) Recommend measures to enhance of the Council, the implementation of the policies
cooperative efforts and mutual assistance and guidelines promulgated by the Council;
among foreign countries through bilateral and/or (b) Establish, maintain and manage a central
multilateral arrangements to prevent and database on trafficking in persons;
suppress international trafficking in persons; (c) Provide secretariat, records keeping and
(m) Coordinate with the Department of other services to the Council; and
Transportation and Communications (DOTC), (d) Perform such other functions as may be
Department of Trade and Industry (DTI), and directed by the Council.
other NGOs in monitoring the promotion of
advertisement of trafficking in the Internet; Article V
(n) Adopt measures and policies to protect the ROLES AND RESPONSIBILITIES
rights and needs of trafficked persons who are
foreign nationals in the Philippines; Sec. 16. Common Roles and Responsibilities
(o) Initiate training programs in identifying and of Council Member Agencies. All member
roviding the necessary intervention or government agencies of the Council shall have
assistance to trafficked the following common roles and responsibilities:
persons; and (a) Develop policies and programs supportive of
(p) Exercise all the powers and perform such and consistent with the objectives of the Act;
other functions necessary to attain the purposes (b) Enhance the capability of its officers and
and objectives of the Act. personnel involved in trafficking issues and

Duman / Labor I / Prof. Battad / Page 41

concerns through appropriate training and staff trafficking and their families;
support programs; (ii) Make available skills training and livelihood
(c) Undertake information, education and services to victims/survivors of trafficking;
advocacy campaigns against trafficking in (iii) Develop program and other support
persons; interventions to facilitate the recovery and
(d) Maintain a databank on trafficking in persons reintegration of
to be shared among relevant agencies and trafficked victims into their families and
complement the central databank to be communities;
established by the Council; and (iv) Provide social welfare services to Filipino
(e) Document good practices as bases for policy victims of trafficking in other countries through
formulation and program development. the DSWD
Social Welfare Attaché and social workers
Sec. 17. Specific Roles and Responsibilities posted in foreign countries, which may include
of National Government Agencies which are but not limited to stress management,
Members of the Council. The following national repatriation and other appropriate psychosocial
government agencies, which are member interventions for their protection and welfare;
agencies of the Council, shall have, but not (v) Conduct technical assistance and capability
limited to, the following roles and responsibilities building activities for social welfare
in the prevention and suppression of trafficking officers/social workers
in persons: of LGUs and NGOs;
(vi) Accredit NGOs that provide programs and
(a) Department of Justice (DOJ) services to ensure that they meet the standards
set by the
(i) Ensure the prosecution of persons for Department; and
violations of the Act; (vii) Provide temporary shelter and psycho-
(ii) Designate and train special prosecutors who social services to foreign nationals who are
shall investigate and prosecute cases of victims of trafficking
trafficking; in persons as confirmed by the Bureau of
(iii) Establish a mechanism for free legal Immigration.
assistance for trafficked persons, in coordination
with the DSWD, Commission on Human Rights (c) Department of Foreign Affairs (DFA)
(CHR), Integrated Bar of the Philippines (IBP)
and other NGOs and volunteer groups; (i) Make available its resources and facilities
(iv) Provide, witness protection to trafficked overseas and to provide services for trafficked
victims and their witnesses; persons
(v) Conduct training and continuing education regardless of the manner of their entry to the
program on investigation and prosecution for receiving country;
trafficking in (ii) Explore means to further enhance its
persons and other related offenses for assistance in eliminating trafficking activities
prosecutors and law enforcement officers; through closer
(vi) Receive, evaluate, process and investigate networking with government agencies in the
claims for compensation by trafficked victims, country and overseas, particularly in the
when applicable, pursuant to Republic Act No. formulation of policies and implementation of
7309 (Victims Compensation relevant programs;
Act); (iii) Actively participate in bilateral, regional and
(vii) Review and recommend policies and international initiatives and cooperative
measures to enhance protection against arrangements
trafficking in persons; aimed at suppressing trafficking in persons and
(viii) Recommend the negotiation of mutual legal protecting and assisting victims of trafficking to
assistance and extradition treaties with other include monitoring of inter-country adoption
countries in cases.
coordination with the DFA; and (iv) Take necessary measures for the efficient
(ix) Coordinate with and/or provide assistance to implementation of the Machine Readable
the Anti-Money Laundering Council (AMLC) on Passports and
cases of Visas to protect the integrity of Philippine
trafficking in persons with possible money passports, visas, and other travel documents to
laundering underpinnings. reduce the incidence of trafficking in persons
through the use of fraudulent identification
(b) Department of Social Welfare and documents;
Development (DSWD) (v) Establish and implement pre-marriage, on-
site and pre-departure counseling program on
(i) Provide psycho-social counseling, temporary inter-marriages.
shelter and other support services to
victims/survivors of

Duman / Labor I / Prof. Battad / Page 42

For this purpose, the DFA shall promulgate the (iii) Adopt policies and procedures, prepare and
necessary guidelines to implement the said implement programs geared towards the
program; and eradication of
(vi) Integrate into the pre-departure orientation trafficking in persons as well as acts that
seminars for foreign service personnel a training promote trafficking in persons such as, but not
module on limited to, the following:
trafficking in persons. (a) Comprehensive and Integrated Education
Program on overseas employment which shall
(d) Department of Labor and Employment be undertaken in partnership with other relevant
(DOLE) organizations and government entities. Such
education program shall cover all stages of
(i) Ensure the strict implementation of and recruitment and employment and shall provide
compliance with rules and guidelines relative to information useful for overseas workers
the including a module on anti-trafficking program
employment of persons locally and overseas; and measures;
and
(ii) Monitor, document and report cases of (b) Nationwide multi-media and sustainable
trafficking in persons involving employers and grassroots information campaign to create
labor publicawareness on the realities of overseas
recruiters; employment and dangers of becoming victims of
(iii) Make available existing resources such as illegal trafficking activities;
employment and livelihood programs as part of
the (c) Conduct special operations, complementary
government’s measure to suppress trafficking in to the power of the PNP, on persons and entities
persons; and engaged
(iv) Conduct public awareness programs and in recruitment for overseas employment reported
activities to prevent victimization. to be violating the provisions of the Act for the
purpose of
(e) Philippine Overseas Employment effecting closure of said establishments
Administration (POEA) pursuant to the provisions of R.A. No. 8042; and

(i) Implement an effective pre-employment (d) Database of cases involving, and

orientation seminar and pre-departure personalities involved in, trafficking persons
counseling program separate and distinct from its illegal Recruitment
to applicants for overseas employment; cases for monitoring purposes;

(ii) Formulate a system providing free legal (iv) In cases of repatriation involving workers
assistance to trafficked persons which shall recruited and deployed by licensed agencies,
include the the POEA shall
following: notify the agency concerned to provide a plane
ticket or Prepaid Travel Advice (PTA) and shall
(a) Provision of legal assistance to victims of impose sanctions on said agencies for failure to
trafficking in persons by means of, or in the cooperate in providing welfare assistance to
guise of, OFWs they have deployed; and
recruitment for overseas employment, as (v) Continue to regulate private sector
defined in Section 6 of R.A. No. 8042, such as participation in the recruitment and overseas
free legal advice, assistance in the preparation placement of
and filing of administrative and criminal actions workers through its licensing and registration
for trafficking as defined in the Act, without system pursuant to its rules and regulation on
prejudice to the filing of administrative and/or overseas
criminal actions for illegal recruitment, as employment. It shall formulate and implement, in
defined in R.A.No. 8042, when proper; coordination with appropriate entities concerned,
when
(b) Assistance in the prosecution of persons who necessary, a system of promoting and
engage in, promote and facilitate trafficking in monitoring the overseas employment of Filipino
persons workers, taking into
by means of, or in the guise of, recruitment for consideration their welfare and protection from
overseas employment, as defined in Section 6 of the dangers and risks inherent in overseas
R.A. 8042; employment, including illegal trafficking.
In this connection, the POEA shall likewise
adopt a policy of confidentiality in all cases (f) Bureau of Immigration (BI)
referred to it involving
possible violations of the Act. (i) Strictly administer and enforce immigration
and alien registration laws;

Duman / Labor I / Prof. Battad / Page 43

(ii) Adopt measures for the apprehension of (a) Pursue the detection and investigation of
suspected traffickers both at the place of arrival suspected or alleged trafficking activities at
and airports
departure; through its Aviation Security Group, at seaports
(iii) Ensure compliance by the Filipino fiancés/ and/or harbors through its Maritime Group, and
fiancées and spouses of foreign nationals with at land
the predeparture and counseling program transportation terminals through its police station
requirement of the Act; and when proper, file the appropriate charges
(iv) Strictly implement the requirement for a against traffickers in the proper court;
parental travel authority duly processed by the
DSWD for (b) Coordinate with the Philippine Ports Authority
minors traveling abroad unaccompanied by one (PPA) which may have initially processed
parent, and the travel clearance for minors complaints at their “Balay Silungan sa
traveling abroad Daungan”; and
unaccompanied by both parents;
(v) Ensure compliance by Overseas Filipino (c) Coordinate with local and barangay officials
Workers of the departure requirements of the with respect to the apprehension and/or arrest of
POEA; traffickers.
(vi) Conduct periodic training and seminar on
fraudulent document detection and passenger (iii) Establish a system to receive complaints and
assessment calls to assist trafficked persons, and the
to enhance the level of skill and competence of conduct of rescue operations;
all its immigration officers and agents in (iv) Direct and supervise the enforcement of its
document fraud detection; andate under the Act and its rules and
(vii) Conduct periodic study of the trends, routes regulations;
and modus operandi employed by the traffickers (v) Supervise the conduct of investigations
including relating to apprehension occurring at land
its recruitment base, transit countries and transportation
country of destination; terminals, domestic seaports and airports and
(viii) Establish a network with other law monitor the filing of appropriate cases against
enforcement agencies and immigration traffickers;
counterparts of (vi) Formulate plans and programs for the
source, transit and destination countries to prevention and/or reduction of trafficking in
facilitate exchange and sharing of information on persons;
the activities of (vii) Integrate in the program of instruction
trafficking syndicates; comprehensive, gender sensitive and child-
(ix) Establish network with LGUs for the effective friendly
apprehension of suspected traffickers and their investigation and handling of cases of trafficking
cohorts; in persons in the Philippine National Police
(x) Develop a program for the procurement and Academy (PNPA), Philippine Public Safety
installation of International Civil Aviation College (PPSC) and other training schools
Organization operated and managed by the PNP; and
(ICAO) — compliant machine readers and fraud (viii) Establish anti-trafficking section under the
detection equipment at all international airports Women and Children Complaint Desk (WCCD)
and seaports in the country to deter trafficking in in all city
persons; and and municipal police stations.
(xi) Develop and distribute materials containing
advisory and other pertinent information to (h) National Commission on the Role of Filipino
enhance Women (NCRFW)
awareness against trafficking in persons.
(i) Actively advocate and participate in
(g) Philippine National Police (PNP) international and regional discussion and
initiatives in
(i) Undertake surveillance, investigation and trafficking in women and include the same in all
arrest of individuals or persons suspected to be of its international commitments and policy
engaged in pronouncements. Where possible and
trafficking; appropriate, work with the Department of
(ii) Coordinate closely with various law Foreign Affairs in forging bilateral and
enforcement agencies to secure concerted multilateral collaborative projects on trafficking;
efforts for effective (ii) Assist the Council in the formulation and
investigation and apprehension of suspected monitoring of policies addressing the issue of
traffickers. For this purpose, it shall also: trafficking in
persons in coordination with relevant
government agencies;

Duman / Labor I / Prof. Battad / Page 44

(iii) Assist the Council in the conduct of
information dissemination and training to (c) Department of Education (DepEd)
frontline government
agencies, NGOs and the general public; (i) Integrate in the appropriate subject areas
(iv) Assist in the development of gender core messages on migration and trafficking in
responsive documentation system in the elementary
coordination with other agencies and the and secondary levels by providing lesson with
National Statistical Coordination Board (NSCB) emphasis on their implications and social costs
through its monitoring of the situation of women to persons and country;
particularly on violence against women; (ii) Provide opportunities for trafficked persons in
(v) Assist the Council in the formulation of the educational mainstream through the basic
prevention and reintegration programs for education
victims of and non-formal education curricula; and
trafficking including the demand side; and (vi) (iii) Provide education and raise consciousness
Conduct studies on the root causes, magnitude of boys/men in schools and communities in
and forms of trafficking in women and document order to discourage the “demand side” or the
best practices in prevention programs. use/buying of trafficked women
and children.
Sec. 18. Roles and Responsibilities of Other
Relevant National Government Agencies. — (d) Department of Health (DOH)
Consistent with their mandates under existing
laws, the following agencies shall integrate (i) Make available its resources and facilities in
human trafficking issues in their strategy and providing health care to victims of trafficking
program formulation and implement programs which shall,
and services for the prevention and suppression at all times, be held confidential.
of trafficking and for the protection of trafficked
victims. (e) Department of Transportation and
They shall likewise have the following roles and Communication (DOTC)
responsibilities:
(i) Provide guidelines for the land, sea and air
(a) Department of the Interior and Local transport providers to train their personnel in
Government (DILG) trafficking
in persons;
(i) Conduct a systematic information (ii) Standardize guidelines for monitoring
dissemination/advocacy and prevention trafficking in persons in every port; and
campaign against trafficking in persons; (iii) Monitor the promotion of advertisement of
(ii) Maintain a databank for the effective trafficking in the Internet.
monitoring, documentation and prosecution of
cases on (f) Commission on Human Rights (CHR)
trafficking in persons;
(iii) Issue directives to the LGUs and barangays (i) Conduct advocacy and training programs
to institutionalize recruiter-monitoring relating to anti-trafficking;
mechanisms and (ii) Investigate and recommend for prosecution
increase public awareness regarding trafficking violations of the Act;
in persons; (iii) Provide legal and financial assistance to
(iv) Promote family and community victims of trafficking; and
empowerment to prevent trafficking in persons; (iv) Integrate anti-trafficking efforts in the
and Barangay Human Rights Action Center
(v) Strengthen, activate and mobilize existing (BHRAC); and
committees, councils, similar organizations and (v) Monitor government compliance to
special international human rights treaty obligations
bodies at the local level to prevent and suppress related to the
trafficking in persons. suppression/elimination of trafficking, particularly
the Convention for the Suppression of Traffic in
(b) Department of Tourism (DOT) Persons and Exploitation of the Prostitution of
Others, the Convention on the Elimination of All
(i) Formulate and implement preventive Forms of Discrimination Against Women, the
measures to stop sex tourism packages and Convention on the Rights of the Child, the
other activities of tourism establishments which Convention on the Protection of Migrant
might contribute to the trafficking in persons in Workers and Members of Their Families, and
coordination with local governmentunits; and the UN Convention Against Transnational
(ii) Provide training to tourist security officers on Organized Crimes including its Protocol to
surveillance, investigation and rescue operation Prevent, Suppress and Punish Trafficking in
strategies. Persons, Especially Women and Children.

Duman / Labor I / Prof. Battad / Page 45

(g) National Bureau of Investigation (NBI) (i) Integrate in its development and strategic
frameworks issues and concerns affecting
(i) Conduct surveillance, monitor and investigate trafficking in
recruiters, travel agencies, hotels and other children and ensure the adoption of such
establishments frameworks by the LGUs and other
suspected to be engaged in trafficking in stakeholders;
persons; (ii) Vigorously advocate against trafficking of
(ii) Coordinate closely with all the Council children;
member agencies for effective detection and (iii) Improve data on trafficking in children
investigation of suspected traffickers; through integration of critical and relevant
(iii) Formulate plans and programs for the indicators into the
detection and prevention of trafficking, and the monitoring system for children;
arrest and (iv) Adopt policies and measures that will protect
prosecution of suspected traffickers; and promote the rights and welfare of children
(iv) Share intelligence information on suspected victims of
traffickers to all Council member agencies when trafficking and coordinate and monitor their
necessary; implementation; and
and (v) Address issues on trafficking of children
(v) Foster cooperation and coordination with the through policy and program interventions.
law enforcement agencies of other countries and
the (k) Philippine Information Agency (PIA)
INTERPOL in the investigation and
apprehension of suspected traffickers. (i) Enhance public awareness on trafficking in
persons, pertinent laws and possible actions to
(h) Philippine Center on Transnational Crime prevent
(PCTC) victimization and re-victimization by developing
public advocacy program as well as printing and
(i) Continue to function in accordance with its distributing
mandate pursuant to Executive Order No. 62, s. appropriate information materials.
1999, on
matters concerning trafficking in persons with (l) Technical Education and Skills Development
transnational dimension; Authority (TESDA)

(ii) Undertake strategic researches on the (i) Provide skills and entrepreneurial training to
structure and dynamics of trafficking in persons trafficked victims; and
with transnational crime dimension, predict (ii) Formulate a special program to ensure the
trends and analyze given factors for the provision of appropriate skills training for
formulation of individual and collective trafficked victims.
strategies for the prevention and detection of
trafficking in persons and the apprehension of Sec. 19. Roles and Responsibilities of Local
criminal elements involved; Government Units (LGUs). The LGUs shall
(iii) Conduct case operations in coordination with have the following roles and responsibilities:
other law enforcement agencies; and
(iv) Serve as the focal point in international law (a) Monitor and document cases of trafficked
enforcement coordination on trafficking in persons in their areas of jurisdiction;
persons (b) Effect the cancellation of licenses of
particularly with the INTERPOL. establishments which violate the provisions of
the Act and
(i) Overseas Workers Welfare Administration ensure its effective prosecution;
(OWWA) (c) Undertake an information campaign against
trafficking in persons through the establishment
(i) Assist in the information and advocacy of the Migrants Advisory and Information
campaign among OFWs to prevent trafficking in Network (MAIN) desks in municipalities and
persons; provinces in coordination with the DILG, PIA,
(ii) Assist in the documentation of cases of Commission on Filipino Overseas (CFO), NGOs
trafficking and ensure the provision of its and other concerned agencies;
programs and (d) Encourage and support community based
services to OFWs and their families; and (iii) initiatives which address trafficking in persons;
Include a module on anti-trafficking to its (e) Provide basic social services for the
predeparture prevention, rescue, recovery, rehabilitation and
seminar. reintegration/after care support services to
victims of trafficking in persons and their
(j) Council for the Welfare of Children (CWC) families;

Duman / Labor I / Prof. Battad / Page 46

(f) Enact ordinances or issuances aimed at be, or has been trafficked shall immediately
providing protection and support to trafficked report the same, either orally, in writing or
persons and adopt measures to prevent and through other means, to any member of the
suppress trafficking in persons; and Council, the barangay authorities, the nearest
(g) Strengthen, activate and mobilize existing police or other law enforcement agency, the
committees, councils, similar organizations and local social welfare and development office or
special bodies the local Council for the Protection of Children.
at the provincial, city, municipal and barangay In the case of trafficking cases abroad, the
levels to prevent and suppress trafficking in report shall be made to the Philippine
persons. Embassy/Consulate which has jurisdiction over
the place where the trafficking occurred or
Sec. 20. Roles and Responsibilities of Non- where the trafficked person is
Government Organizations which are found.
Members of the Council. The NGO members
of the Council shall have the following roles and Sec. 23. Action on the Report. The agency,
responsibilities: entity or person
to whom the report is made shall immediately
(a) Assist government agencies in formulating act as soon as the report is received in
and implementing policies, programs and IEC coordination with other relevant government
campaign against trafficking; agency for appropriate intervention. For this
(b) Assist in capability-building activities of purpose, the Council shall develop a mechanism
government personnel and share their to ensure the timely, coordinated and effective
experiences and response to cases of trafficking in persons.
expertise in handling trafficking cases;
(c) Coordinate with concerned government Article VII
agencies, LGUs and other NGOs in reporting INTERCEPTION, ARREST AND
alleged perpetrators, rescuing victims of INVESTIGATION OF TRAFFICKERS
trafficking, and conducting investigation/
surveillance, if indicated; Sec. 24. Procedure in the Interception, Arrest
(d) Undertake programs and activities for the and Investigation of Traffickers in Persons at
prevention, rescue, recovery and reintegration of International Airport or Seaport. When an
the victims of offense punishable under the Act or any other
trafficking and other support services for their offense in relation thereto or in furtherance
families; thereof has been committed, or is actually being
(e) Document and/or assist in the documentation committed in the presence of an immigration
of cases of trafficking; officer assigned at the international airport or
(f) Disseminate guidelines to all its network seaport,
members, local and international, on policies he/she shall immediately cause the interception
and programs and/or arrest of the persons involved for
addressing issues on trafficking in persons; investigation. The DOJ Task Force Against
(g) Formulate educational module to address Trafficking shall cause the filing of appropriate
thedemand side of trafficking; and case in court when
(h) Perform such other tasks as may be agreed evidence warrants. If the person arrested is a
upon by the Council. foreigner, the concerned B.I.
investigating unit shall take full custody over the
Sec. 21. Assistance of Other Agencies and arrested person, conduct the investigation
Institutions. In implementing the Act and these proper motu proprio and endorse the complaint
rules and regulations, the agencies concerned and supporting documents to the prosecutor for
may seek and enlist the assistance of NGOs, inquest or MTC Judge for appropriate
people’s proceedings.
organizations (POs), civic organizations and
other volunteer groups, which will all likewise be Sec. 25. Procedure in the Interception, Arrest
encouraged to assume the same roles and and Investigation of Traffickers in Persons at
responsibilities enumerated in the preceding Local Airport, Seaport and Land
Section. Transportation Terminals. In cases where the
violation is committed at local seaport, airport or
Article VI in land transportation terminals, the members of
REPORTING OF SUSPECTED/ ALLEGED the law enforcement agency shall
TRAFFICKING INCIDENT immediately cause the interception and/or arrest
of the suspected traffickers. Thereafter, the
Sec. 22. Who May and To Whom to Report. investigation shall be conducted by the law
Any person who has any knowledge or learns of enforcement agency on the person/s
facts or circumstances that give rise to a intercepted/arrested, and
reasonable belief that a person will be, or may

Duman / Labor I / Prof. Battad / Page 47

referred to the Prosecutor’s Office of the place Sec. 29. Rescue at the Country of
where the offense was committed or to the DOJ Destination. —
Task Force Against Trafficking in Persons or
Task Force on Passport Irregularities or (a) Procedure. When the victim is a Filipino
Municipal Trial Court of national and at the time of rescue is residing
the place where the crime was committed in abroad, the embassy or consulate which has
case of municipalities and non-chartered cities jurisdiction over the place where the victim is
for purposes of inquest or preliminary residing shall verify the veracity of the report of
investigation as the case may be. incidence of trafficking and inquire about the
condition of the victim.
Sec. 26. Creation of a Joint Task Force Consistent with the country team approach, the
Against Trafficking in Persons. For the Post concerned shall send a team composed of
purpose of the above provisions, there shall be a consular officer and personnel from the
created a Joint Task Force Against Trafficking in Philippine Overseas Labor Office (POLO) or the
Persons to be assigned at airports composed of Filipino Workers Resource Center (FWRC), the
Prosecution, BI, PNP, and NBI personnel and Office of the Social Welfare Attaché as the case
another Task Force at land transportation may be, to conduct a visit to the jail,
terminals and local seaports and airports to be establishment, work site or residence of the
composed of Prosecution, PNP, BI, PPA, and victim. In the case of Posts without attached
PCG personnel. The DOJ National Task Force services, the team
Against Trafficking in Persons shall issue the will be composed of a consular officer and
necessary personnel from the Assistance-to-Nationals
operational guidelines for the effective section.
coordination, apprehension, investigation and The Post shall make representations with the
prosecution of violations of the Act. The DOJ police authorities or other relevant law
Task Force assigned at local seaports, airports enforcement agencies with respect to the
and land transportation conduct of rescue operations.
terminals shall cooperate or coordinate with the
local authorities, local social welfare and Rescue operation shall also be made in
development officers or active NGOs concerned cooperation and close coordination with some
with trafficking in persons in the locality. NGO’s, local contacts or private individuals
when necessary.
Sec. 27. Rights of the Person Arrested,
Investigated or Detained. In all cases, the In countries and areas where the services of the
rights of the person arrested, investigated or FWRC is not accessible, a mobile type of
detained as provided by the Philippine services shall be extended by the country team
Constitution and under Republic Act No. 7438 members to trafficked persons regardless of
(An Act Defining Certain Rights of Persons their status in the host country.
Arrested, Detained or Under Custodial Thereafter, the victim will be encouraged to
Investigation As Well As The Duties of the execute a sworn statement, recounting among
Arresting, Detaining and Investigating Officers, others, the people/establishment involved in the
and Providing Penalties For Violations Thereof) recruitment/transfer and deployment, the modus
shall, at all times, be respected. operandi employed to recruit, transport and
deploy the victim, and other pertinent
Article VIII information which could provide a lead in the
RESCUE/RECOVERY AND REPATRIATION investigation and eventual prosecution of the
OF VICTIMS perpetrators.

Sec. 28. The Country Team Approach. The (b) Assistance to Trafficked Persons. The
country team approach under Executive Order trafficked person shall be provided with
No. 74, series of 1993 and further enunciated in temporary shelter and other forms of assistance.
Republic Act No. 8042 shall be the operational
scheme under which Philippine embassies In countries where there is an Filipino Workers
abroad shall provide protection to trafficked Resource Center, the services available to
persons regardless of their immigration status. overseas Filipinos as provided for in Republic
Under the Country Team Approach, all officers, Act No. 8042 shall also be extended to trafficked
representatives and personnel of the Philippine persons regardless of their status in the host
government posted abroad regardless of their country.
mother agencies shall, on a per country basis,
act as one-country team with mission under the (c) Legal Assistance Fund. Trafficked persons
leadership of the Ambassador or the head of shall be considered under the category
mission. “Overseas Filipinos in
Distress” and may avail of the Legal Assistance
Fund created by Republic Act No. 8042, subject

Duman / Labor I / Prof. Battad / Page 48

to the guidelines as provided by law, including shall also be referred to the POEA for
rules and regulations issued by the DFA as appropriate action. The report shall also be
to its utilization and disbursement. forwarded to the BI for case build up. The victim
may be referred to the DSWD/Local Social
Sec. 30. Repatriation of Trafficked Persons. Welfare
The DFA, in coordination with DOLE and other And Development Office or to the NBI One-Stop
appropriate agencies, shall have the primary Shop for psychosocial interventions,
responsibility for the repatriation of trafficked psychological and medical examination and
persons, regardless of whether they are follow-through therapy sessions. Protective
documented or undocumented. custody and emergency shelter shall also be
provided to the victim, in appropriate cases.
If, however, the repatriation of trafficked persons
shall expose the victims to greater risks, the DFA Sec. 32. Rescue Within the Country. Rescue
shall make representation with the host operations within the country shall be primarily
government for the extension of appropriate undertaken by the law enforcement agencies in
residency permits coordination with LGUs, DOLE, DSWD and
and protection, as may be legally permissible in DOH. Upon receipt of a report of a suspected or
the host country. alleged trafficking ncident or activity, the law
enforcement agency to which the report is made
Sec. 31. Procedure for Repatriation. In shall conduct rescue operations of trafficked
accordance with existing rules and regulations persons. At the minimum, rescue operations
on the use and disbursement of Assistance-to- shall be guided by the following:
Nationals Fund of the DFA for the repatriation of
distressed OFWs, the Post shall immediately (a) Conduct of rescue operation of trafficked
request the DFA, through the Office of the persons shall be properly coordinated with the
Undersecretary for Migrant Workers’ Affairs concerned agencies particularly DSWD/local
(OUMWA), allocation of funds for the repatriation social welfare and development officer;
of the victim. In appropriate cases and to avoid (b) The rescue team shall ensure full protection
re-victimization, the Post may withdraw the of the rights of the trafficked person as well as
passport of the victim and forward it to the DFA the traffickers while under its custody and
and in control;
its place issue a Travel Document (FA Form (c) After the rescue operation, the investigation
79(B)) valid for direct travel to the Philippines. of the case shall be referred to the Women and
The Post concerned shall report to the DFA, Children Complaint Desk (WCCD) desk of PNP,
through the OUMWA, copy furnished the Office the Violence Against Women and Children
of Consular Affairs, the actual date of Division (VAWCD) of the NBI or other similar
repatriation and other pertinent information and units or desks;
submit a copy of the sworn statement and other (d) After the completion of the necessary
relevant documents. documents for the filing of cases, the rescue
team shall effect the appropriate and immediate
In appropriate cases, especially when the victim turn-over of the trafficked person to DSWD/local
is suffering from mental illness, has suffered social welfare and development officer; and
physical or sexual abuse or has received serious (e) In the course of investigation of the trafficked
threats to his or her life and safety, the victim will person, the investigator handling the case shall
be ensure that
met upon arrival in the Philippines by DSWD the victim shall be accorded with proper
personnel, in coordination with the Joint Task treatment and investigated in a child-friendly and
Force Against Trafficking in Persons and other gender-sensitive
government agencies such as OWWA, BI and environment. In the conduct of investigative
DOH. In the case of mentally ill patients, minors, interviews on children, the law enforcers shall
and other persons requiring special care, the likewise be guided by the Rule on the
Post shall designate a duly authorized individual Examination of a Child Witness promulgated by
to escort said victims to the Philippines. Supreme Court, as may be applicable. For this
purpose, the investigators shall be properly
The victim will be encouraged, if he or she has trained in the handling of cases of trafficked
not done so before, to execute a sworn persons.
statement with the view of filing the appropriate
charges against the suspected trafficker in the Article IX
Philippines. Should the victim request the REHABILITATION AND
assistance of DFA, OUMWA shall interview the REINTEGRATION OF VICTIMS
victim and make recommendations for
investigation with law enforcement agencies Sec. 33. Comprehensive Program. The
such as the PNP and the NBI. In cases where DSWD, LGUs and other concerned agencies
recruitment agencies are involved, the case shall provide a comprehensive, gendersensitive

Duman / Labor I / Prof. Battad / Page 49

and child friendly program for the recovery, stress and facilitate more effective crisis
rehabilitation interventions, healing and reintegration services.
and reintegration of victims/survivors of
trafficking, such as but not limited to the Sec. 36. Documentation. Data banking,
following: research and documentation of best practices in
rehabilitation and reintegration programs shall
(a) Implementation of residential care, child be conducted to identify efficient and effective
placement, educational assistance, livelihood measures and services for the victims of
and skills training trafficking and their families.
and other community-based services must be
responsive to the specific needs and problems
of the victims/survivors and their families;
(b) Active involvement and participation of the
victims/survivors in the rehabilitation and
reintegration process shall be encouraged. In
order to empower them and to prevent their re- Article X
victimization, capability building programs must PROSECUTION, CIVIL FORFEITURE AND
be provided; and Law, Rules and Local RECOVERY OF CIVIL DAMAGES
Instruments 5 3
(c) Active cooperation and coordination with Sec. 37. Who May File a Complaint.
NGOs and other members of the civil society Complaints for violations of the Act may be filed
including the business community, tourism- by the following:
related industries as well as the media in the (a) Any person who has personal knowledge of
rehabilitation and reintegration of the commission of the offense;
victims/survivors shall be undertaken. (b) The trafficked person or the offended party;
(c) Parents or legal guardians;
Sec. 34 Procedure. The following procedure (d) Spouse;
shall be undertaken in implementing a (e) Siblings; or
comprehensive program for the recovery, (f) Children.
rehabilitation and reintegration of
victims/survivors of trafficking: The foregoing persons may also seek the
assistance of the Council in the filing of
(a) The victim/survivor of trafficking may go to complaint.
the nearest DSWD/LGU Social Welfare and
Development Office for assistance; Sec. 38. Institution of Criminal Action; Effect.
(b) Upon referral/interview the DSWD/Local The institution of the criminal action before the
Government Social Worker shall conduct an Office of the Prosecutor or the court, as the case
intake assessment may be, for purposes of preliminary investigation
to determine appropriate intervention with the shall interrupt the running of the period for
victim/survivor; prescription of the offense charged. The
(c) The social worker shall prepare a social case prescriptive period shall commence to run again
study report/case summary for the when such proceedings terminate without the
victim/survivor’s admission to a residential accused being convicted or acquitted or are
facility for temporary shelter or community- unjustifiably stopped for any reason not
based services; imputable to the accused.
(d) Provide services/interventions based on the
rehabilitation plan in coordination with Sec. 39. Institution of Criminal and Civil
appropriate agencies, Actions. Pursuant to the Revised Rules on
e.g. counseling, legal, medical and educational Criminal Procedure, when a criminal action is
assistance; livelihood and/or skills training; as instituted, the civil action arising from the offense
well as appropriate services to the family of the charged shall be deemed instituted with the
trafficked victim/survivor; and criminal action unless the offended party waives
(e) Monitor implementation and periodically the civil action, reserves the right to institute it
evaluate/update the rehabilitation plan until the separately or institutes the civil action prior to
victim/ survivor has been reintegrated with the criminal action.
his/her family and community.
Sec. 40. Exemption from Filing Fees. When
Sec. 35. Capability Building of Service the trafficked person institutes a separate civil
Providers. The frontline agencies and the action for the recovery of civil damages, he/she
service providers must undergo training and shall be exempt from the payment of filing fees.
other capability building activities to enhance
their knowledge and skills in handling cases of Sec. 41. Venue. The offenses punishable under
trafficking to prevent exacerbation of traumatic the Act shall be considered as a continuing
offense and may be filed in the place where the

Duman / Labor I / Prof. Battad / Page 50

offense was committed or where any of its Sec. 45. Immunity from Criminal Prosecution.
elements occurred or where the trafficked Any person who has personal knowledge in the
person actually resides at the time of the commission of any of the offenses penalized
commission of the offense. Provided, that the under the Act and who voluntarily gives material
court where the criminal action is first filed shall information relative thereto and willingly testifies
acquire jurisdiction to the exclusion of other against the offender shall be exempt from
courts. prosecution for the offense with reference to
which his information and testimony were given,
Sec. 42. Forfeiture of the Proceeds and subject to the following conditions:
Instruments Derived from Trafficking in
Persons. — (a) The information and testimony are necessary
(a) After conviction, all proceeds and for the conviction of the accused; and
instruments, including any real or personal (b) Such information and testimony are not yet in
property used in the commission of the offense, the possession of the state.
shall be ordered confiscated and forfeited in
favor of the State unless the owner thereof can Sec. 46. Mandatory Services. To ensure
prove the lack of knowledge of the use of such recovery, rehabilitation and reintegration into the
property in the said illegal activity. Any award for mainstream of society, concerned government
damages arising from the commission of the agencies shall make available the following
offense may be satisfied and charged against services to trafficked persons:
the personal and
separate properties of the offender and if the (a) Emergency shelter or appropriate housing;
same is insufficient to satisfy the claim, the (b) Counseling;
balance shall be taken from the forfeited (c) Free legal services which shall include
properties as may be ordered by the court. information about the victims’ rights and the
(b) During the pendency of the criminal action, procedure for filing complaints, claiming
no property or income used or derived therefrom compensation and such other legal remedies
which are subject to confiscation and forfeiture, available to them, in a language understood by
shall be disposed, alienated or transferred and the trafficked person;
the same shall be in custodia legis and no bond (d) Medical or psychological services;
shall be admitted for the release of the same. (e) Livelihood and skills training; and
(c) The trial prosecutor shall avail of the (f) Educational assistance to a trafficked child.
provisional remedies in criminal cases to ensure
the confiscation, Sustained supervision and follow through
preservation and forfeiture of the said properties. mechanism that will track the progress of
(d) If the offender is a public officer or employee, recovery, rehabilitation and reintegration of the
the forfeiture of his/her property found to be trafficked persons shall be adopted and carried
unlawfully acquired shall be governed by out.
Republic Act No. 1379 otherwise known as “An
Act Declaring Forfeiture in Favor of the State Sec. 47. Legal Protection of Trafficked
Any Property Found to Have Been Unlawfully Persons Who are Foreign Nationals.
Acquired by Any Public Officer or Employee and Trafficked persons in the Philippines who are
Providing for the Proceedings Therefore.” nationals of a foreign country shall be entitled to
appropriate protection, assistance and services
Article XI available to the trafficked persons and shall be
LEGAL PROTECTION AND OTHER allowed to continued presence in the Philippines
SERVICES for a period of fifty-nine (59) days to enable them
to effect the prosecution of the offenders. Such
Sec. 43. Legal Protection. Trafficked persons period may be renewed upon showing of proof
shall be recognized as victims of the act or acts by the trial prosecutor that their further testimony
of trafficking. As such, they shall not be is essential to the prosecution of the case. The
penalized for crimes directly related to the acts trial prosecutor shall course his request for
of trafficking enumerated under the Act or in extension to the Council which shall accordingly
obedience to the order made by the trafficker in act upon the same. If such request is granted,
relation thereto. In this regard, the consent of the the registration and immigration fees of
trafficked person to the intended exploitation set such foreign nationals shall be waived. The
forth in the Act shall be irrelevant. Council, for this purpose, shall develop
additional
Sec. 44. Preferential Entitlement under the guidelines to implement this provision.
Witness Protection Program. Any provision of
Republic Act No. 6981 to the contrary Article XII
notwithstanding, any trafficked person shall be TRUST FUND
entitled to the witness protection program
provided therein.

Duman / Labor I / Prof. Battad / Page 51

Sec. 48. Trust Fund; Sources. All fines (c) Prevention, detection, investigation and
imposed under the Act and the proceeds and prosecution of trafficking in persons, including
properties forfeited and confiscated pursuant to the protection
Section 14 of the Act and Article IX, Section 5 of of victims through exchanges and joint training
these rules and at the bilateral, regional and international levels,
regulations shall accrue to a Trust Fund to be between and among relevant officials including
administered and managed by the Council. police, judges, prosecutors, immigration officers,
other law enforcement agents as well as
Sec. 49. Utilization. The Trust Fund shall be consular authorities; and
used exclusively for programs that will prevent (d) Repatriation of victims of trafficking with due
acts of trafficking and protect, rehabilitate, regard to their safety and in consideration of
reintegrate trafficked persons into the humanitarian
mainstream of society. Such programs shall and compassionate factors.
include, but not limited to the following:

(a) Provision for mandatory services set forth in

Section 23 of the Act; and Section 47 of these
Rules and Article XIV
Regulations. CONFIDENTIALITY
(b) Sponsorship of a national research program
on trafficking and establishment of a data Sec. 52. Confidentiality. At any stage of the
collection system for monitoring and evaluation investigation, prosecution and trial of an offense
purposes; under this Act, law enforcement officers,
(c) Provision of necessary technical and material prosecutors, judges, court personnel and
support services to appropriate government medical practitioners, as well as parties to the
agencies and nongovernment organizations case, shall recognize the right to privacy of the
(NGOs); trafficked person and the accused. Towards this
(d) Sponsorship of conferences and seminars to end, law enforcement officers, prosecutors and
provide venue for consensus building among the judges to whom the complaint has been referred
public, the academe, government, NGOs and may, whenever necessary to ensure a fair and
international organizations; and impartial proceeding, and after considering all
(e) Promotion of information and education circumstances for the best interest of the parties,
campaign on trafficking. order a closed-door investigation, prosecution or
trial. The name and personal circumstances of
The Trust Fund may also be used to support the the trafficked person or of the accused, or any
operations of the Secretariat. other information tending to establish their
identities and such circumstances or information
Sec. 50. Use and Disbursement of Trust shall not be disclosed to the public. In case
Fund. The use and disbursement of the trust when the prosecution or trial is conducted
fund shall be subject to the approval of at least behind closed doors, it shall be unlawful for any
two-thirds (2/3) of the members of the Council editor, publisher, reporter or columnist in case of
and shall be printed materials, announcer or producer in case
governed by existing government accounting of television and radio, producer and director of
and auditing rules and regulations. a film in case of the movie industry, or any
person utilizing tri-media or information
Article XIII technology to cause publicity of and case of
INTERNATIONAL COOPERATION trafficking in persons.
Sec. 51. International Cooperation. The
Council, in close coordination with the DFA and Article XV
other concerned agencies, shall promote OFFENSES AND PENALTIES
cooperation, technical assistance and
partnership among governments and regional Sec. 53. Acts of Trafficking in Persons. Any
and international organizations on the following person, natural or juridical, who commits any of
aspects: the following acts shall suffer the penalty of
imprisonment of twenty (20) years and a fine of
(a) Prevention, protection, prosecution, not less than One million pesos (P1,000,000.00)
repatriation and reintegration aspects of but not more than Two million pesos
trafficking in persons, especially women and (P2,000,000.00):
children;
(b) Systematic exchange of information and (a) To recruit, transport, transfer, harbor, provide,
good practices among law enforcement and or receive a person by any means, including
immigration authorities; those done under the pretext of domestic or
overseas employment or training or
apprenticeship, for the purpose of prostitution,

Duman / Labor I / Prof. Battad / Page 52

pornography, sexual exploitation, forced labor, propaganda material that promotes trafficking in
slavery, involuntary servitude or debt bondage; persons;
(b) To introduce or match for money, profit or (d) To assist in the conduct of misrepresentation
material, economic or other consideration, any or fraud for purposes of facilitating the
person or, as acquisition of clearances and necessary exit
provided for under Republic Act No. 6955, any documents from government agencies that are
Filipino woman with a foreign national, for mandated to provide pre-departure registration
marriage for the purpose of acquiring, buying, and services for departing persons for the
offering, selling or trading him/her to engage in purpose of promoting trafficking
prostitution, pornography, sexual exploitation, in persons;
forced labor, slavery, involuntary servitude or (e) To facilitate, assist or help in the exit and
debt bondage; entry of persons from/to the country at
(c) To offer or contract marriage, real or international and local airports, territorial
simulated, for the purpose of acquiring, buying, boundaries and seaports who are in possession
offering, selling, or trading them to engage in of unissued, tampered or fraudulent and travel
prostitution, pornography, sexual exploitation, documents for the purpose of promoting
forced labor or slavery, involuntary servitude or trafficking in persons;
debt bondage; (f) To confiscate, conceal, or destroy the
(d) To undertake or organize tours and travel passport, travel documents, or personal
plans consisting tourism packages or activities documents or belongings of trafficked persons in
for the purpose of utilizing and offering persons furtherance of trafficking or to prevent them from
for prostitution, pornography or sexual leaving the country or seeking redress from the
exploitation; government or appropriate agencies; and
(e) To maintain or hire a person to engage in (g) To knowingly benefit from, financial or
prostitution or pornography; otherwise or make use of, the labor or services
(f) To adopt or facilitate the adoption of persons of a person held to a condition of involuntary
for the purpose of prostitution, pornography, servitude, forced labor , or slavery.
sexual exploitation,forced labor, slavery,
involuntary servitude or debt bondage; Sec. 55. Qualified Trafficking in Persons. The
(g) To recruit, hire, adopt, transport or abduct a following are considered as qualified trafficking
person, by means of threat or use of force, and shall be penalized with the penalty of life
fraud, deceit, violence, coercion, or intimidation imprisonment and a fine of not less than Two
for the purpose of removal or sale of organs of million pesos (2,000,000.00) but not more than
said person; and Five million pesos (5,000,000.00);
(h) To recruit, transport or adopt a child to
engage in armed activities in the Philippines or (a) When the trafficked person is a child;
abroad. (b) When the adoption is effected through
Republic Act No. 8043, otherwise known as the
Sec. 54. Acts that Promote Trafficking in “Inter-Country Adoption Act of 1995” and said
Persons. Any person, natural or juridical, who adoption is for the purpose of prostitution,
shall commit the following acts which promote or pornography, sexual exploitation, forced labor,
facilitate trafficking in persons, shall be slavery, involuntary servitude or debt bondage;
penalized with the penalty of imprisonment of (c) When the crime is committed by a syndicate ,
fifteen (15) years and a fine of not less than Five or in large scale. Trafficking is deemed
hundred thousand pesos (P500,000.00) but not committed by a syndicate if carried out by a
more than One million pesos (P1,000,000.00): group of three (3) or more persons conspiring or
confederating with one another. It is deemed
(a) To knowingly lease or sublease, use or allow committed in large scale if committed against
to used any house, building or establishment for three (3) or more persons ,
the purpose of promoting trafficking in persons; individually or as a group;
(b) To produce, print and issue or distribute (d) When the offender is an ascendant, parent,
unissued, tampered or fake counseling sibling, guardian or a person who exercises
certificates, registration stickers and certificates authority over the trafficked person or when the
of any government agency which issues these offense is committed by a public officer or
certificates and stickers as proof of compliance employee;
with government regulatory and pre-departure (e) When the trafficked person is recruited to
requirements for the purpose of promoting engage in prostitution with any member of the
trafficking in persons; military or law
(c) To advertise, publish, print, broadcast or enforcement agencies;
distribute, or cause the advertisement, (f) When the offender is a member of the military
publication, printing, orlaw enforcement agencies; and
broadcasting or distribution by any means, (g) When by reason or on occasion of the act of
including the use of information technology and trafficking in persons, the offended party dies,
the internet of any brochure, flyer, or any becomes insane, suffers mutilation or is afflicted

Duman / Labor I / Prof. Battad / Page 53

with Human Immunodeficiency Virus HIV or the (a) First offense — six (6) months of community
Acquired Immune Deficiency Syndrome (AIDS). service as may be determined by the court and
a fine of Fifty thousand pesos (P50,000.00); and
Sec. 56. Violation of Confidentiality
Provisions. Any person who violates Section 7 (b) Second and subsequent offenses —
of the Act and Section 52, Article XIV hereof imprisonment of one year (1) year and a fine of
shall suffer the penalty of imprisonment of six (6) One hundred thousand pesos (P100,000.00).
years and a fine not less than Five hundred
thousand pesos (P500,000.00) but not more The Council shall coordinate with the Supreme
than One million pesos (P1,000,000.00). Court through the Office of the Court
Administrator for the issuance of appropriate
Sec. 57. Application of Penalties and Other guidelines and measures for the judiciary to
Sanctions. The following shall be applied in the implement this provision particularly on the
imposition of penalties: aspect of implementing the penalty of
community service.
(a) If the offender is a corporation, partnership,
association, club, establishment or any judicial Article XV
person, the FUNDING
penalty shall be imposed upon the owner,
president, partner, manager, and/or any Sec. 59. Inclusion in Agency Appropriations.
responsible officer who participated in the The heads of departments and agencies
commission of the crime or who shall have concerned shall immediately include in their
knowingly permitted or failed to prevent its annual appropriations the funding necessary to
commission; implement programs and services required by
(b) The registration with the Securities and the Act and these regulations.
exchange Commission (SEC) and license to
operate of the erring agency, corporation, In the interim, the funding necessary to carry out
association, religious group, tour or travel agent, their mandate under the law may be charged
club or establishment, or any place or against their Gender and Development (GAD)
entertainment shall be cancelled and revoked budget.
permanently. The owner, president, partner or
manager thereof shall not be allowed to operate Article XVII
similar establishment in a different name; FINAL PROVISIONS
(c) If the offender is a foreigner, he shall be
immediately deported after serving his sentence Sec. 60. Non-Restriction of Freedom of
and be barred Speech and of Association, Religion and the
permanently from entering the country; Right to Travel. Nothing in these rules and
(d) Any employee or official of government regulations shall be interpreted as a restriction of
agencies who shall issue or approve the the freedom and of association, religion and the
issuance of travel exit clearances, passports, right to travel for purposes not contrary to law as
registration certificates, counseling certificates, guaranteed by the Constitution.
marriage license, and other similar documents to
persons, whether judicial or natural, recruitment Sec. 61. Saving Clause. The provisions of
agencies, establishments or other individuals or Republic Act No. 7610, otherwise known as the
groups, who fail to observe the prescribed “Special Protection of Children Against Child
procedures and the requirement as provided for Abuse, Exploitation and Discrimination Act” shall
by laws, rules and regulations, shall be held remain applicable and shall not in any way be
administratively liable, without prejudice to amended or repealed by the provisions of the
criminal liability under the Act. The concerned Act and these rules and regulations.
government official or employee shall, upon
conviction, be dismissed from the service and be Sec. 62. Separability Clause. The declaration
barred permanently to hold public office. His/her of invalidity of any provision of these rules and
retirement and other benefits shall likewise be regulations or part thereof shall not affect the
forfeited; and validity of the remaining provisions.
(e) Conviction by final judgment of the adopter
for any offense under this Act shall result in the Sec. 63. Repealing Clause. Pertinent
immediate provisions of all laws, presidential decrees,
rescission of the decree of adoption. executive orders and rules and regulations, or
parts thereof, contrary to or inconsistent with the
Sec. 58. Use of Trafficked Persons. Any provisions of the Act and these rules and
person who buys or engages the services of regulations are hereby repealed or modified
trafficked persons for prostitution shall be accordingly.
penalized as follows:

Duman / Labor I / Prof. Battad / Page 54

 Sec. 64. Effectivity. These rules and regulations authorities;
shall take effect fifteen (15) days after its 1.3 Non-compliance with the conditions for
complete publication in at least two (2) which the AEP was issued;
newspapers of general circulation. 1.4 Failure to renew AEP within one (1) year
after its expiration.
7. Alien Employment Regulation
2. Petitions for cancellation or revocation of
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule permits issued shall be resolved within thirty
XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines for Issuance (30) calendars from receipt thereof.
of Employment Permits to Foreign Nationals); Const., Art.
XII, Sec. 12
3. Any aggrieved party may file a Motion for
Reconsideration and/or Appeal and the
same shall be resolved based on Paragraph
4 of this Rule.

a. Coverage
 General Milling Corp. v. Torres, 196
 Almodiel v. NLRC, 223 SCRA 341
SCRA 215 (1991)
(1993)

b. Conditions for grant of Permit, Omnibus

Guidelines, Rule III. 1, 2, 3
c. Validity of AEP, Omnibus Rules, Rule II.7

RULE III. Revocation/Cancellation of Employment

7. Validity of Permits - The validity of permits shall
Permits Issued
be as follows:

1. The permits issued may, motu proprio or

7.1 As a general rule, the validity of permits
upon a petition, be cancelled or revoked
shall be for a period of one (1) year, unless
based on any of the following grounds:
the employment contract, consultancy
services, or other modes of engagement or
1.1 Misrepresentation of facts or falsification term of office for elective officers, provides
of the documents submitted; for a longer period.
1.2 The foreign national has been declared 7.2 The effectivity of the renewal shall be on
as an undesirable alien by competent the day after the expiration of the previous
Duman / Labor I / Prof. Battad / Page 55
 permit, regardless of whether or not the Promote and strengthen the quality of technical
renewal is granted before or after the education and skills development programs to attain
expiration of the previous permit. international competitiveness;
7.3 As a general rule, the permits shall be
valid only for the position and the employer Focus technical education and skills development on
for which it was issued, except in case of meeting the changing demands for quality middle-level
foreign nationals who are holders of multiple manpower;
positions in one corporation, where one AEP
shall be valid for such multiple positions. Encourage critical and creative thinking by disseminating
7.4 The permits of resident foreign nationals the scientific and technical knowledge base of middle-level
shall be valid for multiple employers, manpower development programs;
regardless of the nature and duration of their
employment, provided that they shall report Recognize and encourage the complementary roles of
changes in their employment status and the public and private institutions in technical education and
identity of their employers to the DOLE skills development and training systems; and
Regional Office which has issued the permit.
Inculcate desirable values through the development of
moral character with emphasis on work ethic, self-discipline,
self-reliance and nationalism.

d. Revocation/Cancellation/Grounds, Omnibus Guidelines, Rule 2. Apprentice

III.1
a. Definition, RA 7796, Sec. 4 (j)

"Apprentice" is a person undergoing training for an

RULE III. Revocation/Cancellation of Employment approved apprenticeable occupation during an
Permits Issued apprenticeship agreement;

1. The permits issued may, motu proprio or upon a b. Apprenticeable Occupation, RA 7796,
petition, be cancelled or revoked based on any of Sec. 4 (m)
the following grounds:
(m) "Apprenticeable Occupation" is an occupation
officially endorsed by a tripartite body and approved
1.1 Misrepresentation of facts or falsification of the
for apprenticeship by the authority;
documents submitted;
1.2 The foreign national has been declared as c. Qualification, RA 7610, as amended by
an undesirable alien by competent authorities; RA 7658, Sec. 12
1.3 Non-compliance with the conditions for
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
REPUBLIC ACT NO. 7658
after its expiration.

E. Human Resources Development

AN ACT PROHIBITING THE EMPLOYMENT OF
CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC
Reference: Arts. 57-81; Technical Education and Skills AND PRIVATE UNDERTAKINGS, AMENDING FOR
Development Authority Act of 1994 (TESDA) (RA 7796); THIS PURPOSE SECTION 12, ARTICLE VIII OF R.
Dual Training Systems Act of 1994 (RA 7686); Magna Carta A. 7610.
for Disabled Persons (RA 7277)
Section 1. Section 12, Article VIII of R. A. No. 7610
1. Policy Objectives, RA 7796, Secs. 2-3 otherwise known as the "Special Protection of
Children Against Child Abuse, Exploitation and
Discrimination Act" is hereby amended to read as
SEC. 2. Declaration of Policy. - I t is hereby declared follows:
the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills "Sec. 12. Employment of Children. — Children
development in support of the development of high below fifteen (15) years of age shall not be
quality Filipino middle-level manpower responsive to employed except:
and in accordance with Philippine development goals (1) When a child works directly under the sole
and priorities. responsibility of his parents or legal guardian and
where only members of the employer's family are
employed: Provided, however, That his
The State shall encourage active participation of
employment neither endangers his life, safety,
various concerned sectors, particularly private
health and morals, nor impairs his normal
enterprises, being direct participants in and immediate
development; Provided, further, That the parent or
beneficiaries of a trained and skilled workforce, in
legal guardian shall provide the said minor child
providing technical education and skills development
with the prescribed primary and/or secondary
opportunities.
education; or
(2) Where a child's employment or participation in
SEC. 3. Statement of Goals and Objectives. - It is the public entertainment or information through
goal and objective of this Act to: cinema, theater, radio or television is essential:
Provided, The employment contract is concluded
Duman / Labor I / Prof. Battad / Page 56
 by the child's parents or legal guardian, with the
express agreement of the child concerned, if
possible, and the approval of the Department of
Labor and Employment: and Provided, That the
following requirements in all instances are strictly
complied with:
(a) The employer shall ensure the protection,
e. Terms and Conditions of Employment,
health, safety, morals and normal development of Art. 61, 72
the child;

ART. 61. Contents of apprenticeship agreements. -

(b) The employer shall institute measures to Apprenticeship agreements, including the wage rates
prevent the child's exploitation or discrimination of apprentices, shall conform to the rules issued by
taking into account the system and level of the Secretary of Labor and Employment. The period
remuneration, and the duration and arrangement of apprenticeship shall not exceed six months.
of working time; and Apprenticeship agreements providing for wage rates
(c) The employer shall formulate and implement, below the legal minimum wage, which in no case shall
subject to the approval and supervision of start below 75 percent of the applicable minimum
competent authorities, a continuing program for wage, may be entered into only in accordance with
training and skills acquisition of the child. apprenticeship programs duly approved by the
In the above exceptional cases where any such Secretary of Labor and Employment. The Department
child may be employed, the employer shall first shall develop standard model programs of
secure, before engaging such child, a work permit apprenticeship. (As amended by Section 1, Executive
from the Department of Labor and Employment Order No. 111, December 24, 1986).
which shall ensure observance of the above
requirements.
The Department of Labor and Employment shall ART. 72. Apprentices without compensation. - The
promulgate rules and regulations necessary for Secretary of Labor and Employment may authorize
the effective implementation of this Section." the hiring of apprentices without compensation whose
training on the job is required by the school or training
Sec. 2. All laws, decrees, executive orders, rules program curriculum or as requisite for graduation or
and regulations or parts thereof contrary to, or board examination.
inconsistent with this Act are hereby modified or
repealed accordingly. 3. Costs, Art. 71
Sec. 3. This Act shall take effect fifteen (15) days ART. 71. Deductibility of training costs. - An additional
after its complete publication in the Official deduction from taxable income of one-half (1/2) of the
Gazette or in at least two (2) national newspapers value of labor training expenses incurred for developing
or general circulation whichever comes earlier. the productivity and efficiency of apprentices shall be
granted to the person or enterprise organizing an
Approved: November 9, 1993 apprenticeship program: Provided, That such program is
duly recognized by the Department of Labor and
Employment: Provided, further, That such deduction shall
d. Allowed Employment; Requirement not exceed ten (10%) percent of direct labor wage: and
Program Approval Provided, finally, That the person or enterprise who wishes
to avail himself or itself of this incentive should pay his
 Nitto Enterprises v. NLRC, apprentices the minimum wage.
258 SCRA 654 (1995)
4. Enforcement, Arts. 65, 66, 67

ART. 65. Investigation of violation of apprenticeship

agreement. - Upon complaint of any interested person
or upon its own initiative, the appropriate agency of
the Department of Labor and Employment or its
authorized representative shall investigate any
violation of an apprenticeship agreement pursuant to
such rules and regulations as may be prescribed by
the Secretary of Labor and Employment.

ART. 66. Appeal to the Secretary of Labor and

Employment. - The decision of the authorized agency
of the Department of Labor and Employment may be
appealed by any aggrieved person to the Secretary of
Labor and Employment within five (5) days from
receipt of the decision. The decision of the Secretary
of Labor and Employment shall be final and
executory.

ART. 67. Exhaustion of administrative remedies. - No

person shall institute any action for the enforcement
of any apprenticeship agreement or damages for

Duman / Labor I / Prof. Battad / Page 57

 breach of any such agreement, unless he has (b) Impairment is any loss, diminution or
exhausted all available administrative remedies. aberration of psychological, physiological, or
anatomical structure or function;
5. Learners
(c) Disability shall mean 1) a physical or mental
a. Definition, RA 7796, Sec. 4 impairment that substantially limits one or more
psychological, physiological or anatomical
(n) “Learners" refer to persons hired as trainees in semi- function of an individual or activities of such
skills and other industrial occupations which are non- individual; 2) a record of such an impairment; or
apprenticeable. Learnersship programs must be approved 3) being regarded as having such an impairment;
by the Authority;

b. Allowed Employment, Art. 74 (b) (d) Handicap refers to a disadvantage for a given
individual, resulting from an impairment or a
ART. 74. When learners may be hired. - Learners may be disability, that limits or prevents the function or
employed when no experienced workers are available, the activity, that is considered normal given the age
employment of learners is necessary to prevent and sex of the individual;
curtailment of employment opportunities, and the
employment does not create unfair competition in terms of
labor costs or impair or lower working standards. b. Policy Declaration, RA 7277, Sec. 2

c. Terms and Conditions of Employment, Sec. 2. Declaration of Policy — The grant of the
Arts. 75, 76 rights and privileges for disabled persons shall be
guided by the following principles:
(a) Disabled persons are part of Philippine society,
ART. 75. Learnership agreement. - Any employer thus the State shall give full support to the
desiring to employ learners shall enter into a improvement of the total well-being of disabled
learnership agreement with them, which agreement persons and their integration into the mainstream
shall include: of society. Toward this end, the State shall adopt
policies ensuring the rehabilitation, self-
development and self-reliance of disabled
(a) The names and addresses of the learners;
persons. It shall develop their skills and potentials
to enable them to compete favorably for available
(b) The duration of the learnership period, which opportunities.
shall not exceed three (3) months;
(b) Disabled persons have the same rights as
(c) The wages or salary rates of the learners which other people to take their proper place in society.
shall begin at not less than seventy-five percent They should be able to live freely and as
(75%) of the applicable minimum wage; and independently as possible. This must be the
concern of everyone — the family, community and
(d) A commitment to employ the learners if they so all government and nongovernment
desire, as regular employees upon completion of organizations. Disabled persons' rights must
the learnership. All learners who have been allowed never be perceived as welfare services by the
or suffered to work during the first two (2) months Government.
shall be deemed regular employees if training is
terminated by the employer before the end of the (c) The rehabilitation of the disabled persons shall
stipulated period through no fault of the learners. be the concern of the Government in order to
foster their capacity to attain a more meaningful,
The learnership agreement shall be subject to productive and satisfying life. To reach out to a
inspection by the Secretary of Labor and greater number of disabled persons, the
Employment or his duly authorized representative. rehabilitation services and benefits shall be
expanded beyond the traditional urban-based
centers to community based programs, that will
ART. 76. Learners in piecework. - Learners
ensure full participation of different sectors as
employed in piece or incentive-rate jobs during the
supported by national and local government
training period shall be paid in full for the work
agencies.
done.

(d) The State also recognizes the role of the

6. Differently-Abled Worker (Handicapped), RA private sector in promoting the welfare of
7277 disabled persons and shall encourage partnership
in programs that address their needs and
a. Definition, RA 7277, Sec. 4 (a) (b) (c) (d) concerns.

Sec. 4. Definition of Terms. — For purposes of

this Act, these terms are defined as follows: (e) To facilitate integration of disabled persons
(a) Disabled persons are those suffering from into the mainstream of society, the State shall
restriction or different abilities, as a result of a advocate for and encourage respect for disabled
mental, physical or sensory impairment, to persons. The State shall exert all efforts to
perform an activity in the manner or within the remove all social, cultural, economic,
range considered normal for a human being; environmental and attitudinal barriers that are
prejudicial to disabled persons.

Duman / Labor I / Prof. Battad / Page 58

c. Coverage, RA 7277, Sec. 3

Sec. 3. Coverage. — This Act shall cover all disabled

persons and, to the extent herein provided,
departments, offices and agencies of the National
Government or nongovernment organizations
involved in the attainment of the objectives of this
Act.

d. Rights and Privileges, RA 7277, Secs. 5, 6, 7

Sec. 5. Equal Opportunity for Employment. — No

disable person shall be denied access to
opportunities for suitable employment. A qualified e. Discrimination, RA 7277, Secs. 32, 33
disabled employee shall be subject to the same
terms and conditions of employment and the Sec. 32. Discrimination on Employment. — No
same compensation, privileges, benefits, fringe entity, whether public or private, shall
benefits, incentives or allowances as a qualified discriminate against a qualified disabled person
able bodied person. by reason of disability in regard to job application
Five percent (5%) of all casual emergency and procedures, the hiring, promotion, or discharge of
contractual positions in the Departments of Social employees, employee compensation, job training,
Welfare and Development; Health; Education, and other terms, conditions, and privileges of
Culture and Sports; and other government employment. The following constitute acts of
agencies, offices or corporations engaged in discrimination:
social development shall be reserved for disabled (a) Limiting, segregating or classifying a disabled
persons. job applicant in such a manner that adversely
affects his work opportunities;
Sec. 6. Sheltered Employment — If suitable
employment for disabled persons cannot be (b) Using qualification standards, employment
found through open employment as provided in tests or other selection criteria that screen out or
the immediately preceding Section, the State shall tend to screen out a disabled person unless such
endeavor to provide it by means of sheltered standards, tests or other selection criteria are
employment. In the placement of disabled shown to be job-related for the position in
persons in sheltered employment, it shall accord question and are consistent with business
due regard to the individual qualities, vocational necessity;
goals and inclinations to ensure a good working
atmosphere and efficient production.
(c) Utilizing standards, criteria, or methods of
administration that:
Sec. 7. Apprenticeship. — Subject to the
provisions of the Labor Code as amended,
disabled persons shall be eligible as apprentices (1) have the effect of discrimination on the basis
or learners: Provided, That their handicap is not of disability; or
as much as to effectively impede the performance
of job operations in the particular occupation for (2) perpetuate the discrimination of others who
which they are hired; Provided, further, That after are subject to common administrative control.
the lapse of the period of apprenticeship, if found (d) Providing less compensation, such as salary,
satisfactory in the job performance, they shall be wage or other forms of remuneration and fringe
eligible for employment. benefits, to a qualified disabled employee, by
reason of his disability, than the amount to which
a non-disabled person performing the same work
is entitled;
 Bernardo v. NLRC & FEBTC, 310 SCRA
186 (1999) (e) Favoring a non-disabled employee over a
qualified disabled employee with respect to
promotion, training opportunities, study and
scholarship grants, solely on account of the
latter's disability;

(f) Re-assigning or transferring a disabled

employee to a job or position he cannot perform
by reason of his disability;

(g) Dismissing or terminating the services of a

disabled employee by reason of his disability
unless the employer can prove that he impairs the
satisfactory performance of the work involved to
the prejudice of the business entity: Provided,
however, That the employer first sought to
provide reasonable accommodations for disabled
persons;

Duman / Labor I / Prof. Battad / Page 59

(h) Failing to select or administer in the most (b) providing an auxiliary aid or service,
effective manner employment tests which modification of policy, practice or procedure, or
accurately reflect the skills, aptitude or other alternative method; and
factor of the disabled applicant or employee that
such tests purports to measure, rather than the (c) making facilities readily accessible to and
impaired sensory, manual or speaking skills of usable by individuals with disabilities.
such applicant or employee, if any; and
Sec. 46. Penal Clause. — (a) Any person who
(i) Excluding disabled persons from membership violates any provision of this Act shall suffer the
in labor unions or similar organizations. following penalties:
(1) for the first violation, a fine of not less than
Sec. 33. Employment Entrance Examination. — Fifty thousand pesos (P50,000.00) but not
Upon an offer of employment, a disabled exceeding One hundred thousand pesos
applicant may be subjected to medical (P100,000.00) or imprisonment of not less than six
examination, on the following occasions: (6) months but not more than two (2) years, or
(a) all entering employees are subjected to such both at the discretion of the court; and
an examination regardless of disability;
(2) for any subsequent violation, a fine of not less
(b) information obtained during the medical than One hundred thousand pesos (P100,000.00)
condition or history of the applicant is collected but not exceeding Two hundred thousand pesos
and maintained on separate forms and in separate (P200,000.00) or imprisonment for not less than
medical files and is treated as a confidential two (2) years but not more than six (6) years, or
medical record; Provided, however, That: both at the discretion of the court.
(1) supervisors and managers may be informed (b) Any person who abuses the privileges granted
regarding necessary restrictions on the work or herein shall be punished with imprisonment of not
duties of the employees and necessary less than six (6) months or a fine of not less than
accommodations; Five thousand pesos (P5,000.00), but not more
than Fifty thousand pesos (P50,000.00), or both, at
(2) first aid and safety personnel may be informed, the discretion of the court.
when appropriate, if the disability may require
emergency treatment; (c) If the violator is a corporation, organization or
any similar entity, the officials thereof directly
(3) government officials investigating compliance involved shall be liable therefor.
with this Act shall be provided relevant
information on request; and (d) If the violator is an alien or a foreigner, he shall
be deported immediately after service of sentence
(4) the results of such examination are used only without further deportation proceedings.
in accordance with this Act.
NOTES:
f. Enforcement, Secs. 44, 45, 46
_______________________________________
Sec. 44. Enforcement by the Secretary of Justice. _______________________________________
— _______________________________________
(a) Denial of Right _______________________________________
(1) Duty to Investigate — the Secretary of Justice
_______________________________________
shall investigate alleged violations of this Act, and
shall undertake periodic reviews of compliance of _______________________________________
covered entities under this Act. _______________________________________
(b) Potential Violations — If the Secretary of _______________________________________
Justice has reasonable cause to believe that — _______________________________________
(1) any person or group of persons is engaged in _______________________________________
a pattern or practice of discrimination under this
_______________________________________
Act; or
_______________________________________
_______________________________________
(2) any person or group or persons has been
discriminated against under this Act and such _______________________________________
discrimination raises an issue of general public _______________________________________
importance, the Secretary of Justice may _______________________________________
commence a legal action in any appropriate _______________________________________
court. _______________________________________
Sec. 45. Authority of Court. — The court may
_______________________________________
grant any equitable relief that such court
considers to be appropriate, including, to the _______________________________________
extent required by this Act: _______________________________________
(a) granting temporary, preliminary or permanent _______________________________________
relief; _______________________________________
_______________________________________
_______________________________________
Duman / Labor I / Prof. Battad / Page 60
_______________________________________ ART. 42. Submission of list. - Any employer employing non-
resident foreign nationals on the effective date of this Code
_______________________________________
shall submit a list of such nationals to the Secretary of Labor
_______________________________________ within thirty (30) days after such date indicating their
_______________________________________ names, citizenship, foreign and local addresses, nature of
_______________________________________ employment and status of stay in the country. The Secretary
of Labor shall then determine if they are entitled to an
_______________________________________
employment permit.
_______________________________________
_______________________________________ Omnibus Rules, Book I, Rule XIV
_______________________________________
RULE XIV
_______________________________________ Employment of Aliens
_______________________________________
_______________________________________ SECTION 1. Coverage. — This Rule shall apply to all aliens
_______________________________________ employed or seeking employment in the Philippines, and
_______________________________________ their present or prospective employers.
_______________________________________
_______________________________________ SECTION 2. Submission of list. — All employers employing
_______________________________________ foreign nationals, whether resident or non-resident shall
submit a list of such nationals to the Bureau indicating their
_______________________________________ names, citizenship, foreign and local addresses; nature of
_______________________________________ employment and status of stay in the Philippines.
_______________________________________
_______________________________________ SECTION 3. Registration of resident aliens. — All employed
_______________________________________ resident aliens shall register with the Bureau under such
guidelines as may be issued by it.
_______________________________________
_______________________________________
SECTION 4. Employment permit required for entry. — No
alien seeking employment, whether on resident or non-
Habol: resident status, may enter the Philippines without first
Alien Employment Regulation securing an employment permit from the Department of
Labor and Employment. If an alien enters the country under
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule a non-working visa and wishes to be employed thereafter,
XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines for Issuance he may only be allowed to be employed upon presentation
of Employment Permits to Foreign Nationals); Const., Art. of a duly approved employment permit.
XII, Sec. 12

Labor Code SECTION 5. Requirements for employment permit

Art. 12 (e) To regulate the employment of aliens, including application. — The application for an employment permit
the establishment of a registration and/or work permit shall be accompanied by the following:
system;
(a) Curriculum vitae duly signed by the applicant indicating
ART. 40. Employment permit of non-resident aliens. - Any his educational background, his work experience and other
alien seeking admission to the Philippines for employment data showing that he possesses high technical skills in his
purposes and any domestic or foreign employer who desires trade or profession;
to engage an alien for employment in the Philippines shall
obtain an employment permit from the Department of Labor. (b) Contract of employment between the employer and the
principal which shall embody the following, among others:
The employment permit may be issued to a non-resident
alien or to the applicant employer after a determination of (1) That the non-resident alien worker shall comply with all
the non-availability of a person in the Philippines who is applicable laws and rules and regulations of the Philippines;
competent, able and willing at the time of application to
perform the services for which the alien is desired.
(2) That the non-resident alien worker and the employer
shall bind themselves to train at least two (2) Filipino
For an enterprise registered in preferred areas of understudies for a period to be determined by the Secretary
investments, said employment permit may be issued upon of Labor and Employment; and
recommendation of the government agency charged with
the supervision of said registered enterprise.
(3) That he shall not engage in any gainful employment
other than that for which he was issued a permit.
ART. 41. Prohibition against transfer of employment. - (a)
After the issuance of an employment permit, the alien shall
not transfer to another job or change his employer without (c) A designation by the employer of at least two (2)
prior approval of the Secretary of Labor. understudies for every alien worker. Such understudies must
be the most ranking regular employees in the section or
department for which the expatriates are being hired to
(b) Any non-resident alien who shall take up employment in ensure the actual transfer of technology.
violation of the provision of this Title and its implementing SECTION 6. Issuances of employment permit. — The
rules and regulations shall be punished in accordance with Secretary of Labor and Employment may issue an
the provisions of Articles 289 and 290 of the Labor Code. employment permit to the applicant based on:
a) Compliance by the applicant and his employer with the
In addition, the alien worker shall be subject to deportation requirements of Section 2 hereof;
after service of his sentence.

Duman / Labor I / Prof. Battad / Page 61

b) Report of the Bureau Director as to the availability or non- (SIRV), Special Retirees Resident Visa (SRRV),
availability of any person in the Philippines who is Treaty Traders Visa (9d) or Special Non-immigrant
competent, able, and willing to do the job for which the Visa (47(a)2), who occupy any executive, advisory,
services of the applicant are desired; supervisory, or technical position in any
establishment;
c) His assessment as to whether or not the employment of
the applicant will redound to the national interest; 1.4. Agencies, organizations or individuals
whether public or private, who secure the
d) Admissibility of the alien as certified by the Commission services of foreign professionals to practice their
on Immigration and Deportation; professions in the Philippines in the Philippines
under reciprocity and other international
agreements;
e) The recommendation of the Board of Investments or
other appropriate government agencies if the applicant will
be employed in preferred areas of investments or in 1.5. Non-Indo-Chinese Refugees who are asylum
accordance with imperatives of economic developments; and seekers and given refugee status by the United
Nations High Commissioner on Refugees
(UNHCR) or the Department of Justice under DOJ
f) Payments of a P100.00 fee.
Department Order No. 94, series of 1998;

SECTION 7. Duration of employment permit. — Subject to 1.6. Resident foreign nationals seeking
renewal upon showing of good cause, the employment employment in the Philippines.
permit shall be valid for a minimum period of one (1) year 2. Exemption. The following categories of foreign
starting from the date of its issuance unless sooner revoked nationals are exempt from securing an
by the Secretary of Labor and Employment for violation of
employment permit in order to work in the
any provisions of the Code or of these Rules.
Philippines.
2.1 All members of the diplomatic services and
SECTION 8. Advice to Commission on Immigration and foreign government officials accredited by the
Deportation. — The Bureau shall advice the Commission on Philippine Government;
Immigration and Deportation on the issuance of an 2.2 Officers and staff of international
employment permit to an applicant.
organizations of which the Philippine government
is a cooperating member, and their legitimate
SECTION 9. Understudy Training Program. — The employer spouse desiring to work in the Philippines;
shall submit a training program for his understudies to the 2.3 Foreign nationals elected as members of the
Bureau within thirty (30) days upon arrival of the alien Governing board who do not occupy any other
workers. The supervision of the training program shall be position, but have only voting rights in the
the responsibility of the Bureau and shall be in accordance
corporation; and
with standards established by the Secretary of Labor and
2.4 All foreign nationals granted exemption by
Employment.
special laws and all other laws that may be
promulgated by the Congress.
Omnibus Guidelines for Issuance of Employment Rule II
Permits to Foreign Nationals –DO 12, November 12, Procedures in the Processing of Applications for
2001. AEP

DEPARTMENT ORDER NO. 12 1. All foreign nationals seeking employment in the

(Series of 2001) Philippines under Rule 1 hereof or their
. prospective employers, shall file their
. applications with the DOLE Regional Office
OMNIBUS GUIDELINES FOR THE ISSUANCE OF having jurisdiction over the intended place of
EMPLOYMENT PERMITS TO FOREIGN work.
NATIONALS.
. 2. Fees - The applicant shall pay filing, publication
. and permit fees in the amount of Eight thousand
Pursuant to the provisions of Articles 5 and 40 of pesos (P8,000.00) for each application for AEP
P. D. 442, as amended, the provisions of Rule XIV, with a validity of one (1) year. Three thousand
Book I of its Implementing Rules and Regulations, pesos (P3,000.00) shall be charged for every
Section 17(5), Chapter 4, Title VII of the additional year of validity or a fraction thereof.
Administrative Code of 1987, the following
Omnibus Guidelines for the issuance of
Employment Permits are hereby promulgated: 3. An AEP shall be issued based on the following:

Rule I 3.1. Compliance bye the applicant employer or the

Coverage and Exemption foreign national with the substantive and
documentary requirements;
1. The following shall apply for Alien Employment
Permit (AEP): 3.2. Determination of the DOLE Secretary that
1.1. All foreign nationals seeking admission to the there is no Filipino national who is competent,
Philippines for the purpose of employment; able and willing to do the job for which the
services of the applicant is desired;
1.2. Missionaries or religious workers who intend
to engage in gainful employment; 3.3. Assessment of the DOLE Secretary that the
employment of the foreign national will redound
1.3. Holders of Special Investors Resident Visa to national benefit;
Duman / Labor I / Prof. Battad / Page 62
4. Denial of Application for AEP - An application 1.1 Misrepresentation of facts or falsification of
for AEP may be denied based on the ground of the documents submitted;
non-compliance with any of the requirements for
issuance of AEP or for misrepresentation of facts 1.2 The foreign national has been declared as an
in the application or submission of falsified or undesirable alien by competent authorities;
tampered documents.
1.3 Non-compliance with the conditions for which
Foreign nationals whose applications have been the AEP was issued;
denied shall not be allowed to re-apply in any of
the DOLE Regional Offices. 1.4 Failure to renew AEP within one (1) year after
its expiration.
2. Petitions for cancellation or revocation of
5. Renewal of Permit - An application for renewal permits issued shall be resolved within thirty (30)
of AEP shall be filed at least fifteen (15) days calendars from receipt thereof.
before its expiration. For elective officers,
applications for renewal shall be filed upon
election or at least thirty (30) days before the 3. Any aggrieved party may file a Motion for
effectivity of the applicant's term of office if the Reconsideration and/or Appeal and the same shall
succeeding term of office is ascertained. be resolved based on Paragraph 4 of this Rule.

Failure to file the application for renewal of permit 4. Remedies in Case of Denial or Cancellation - A
within the prescribed period shall be subject to Motion for Reconsideration maybe filed by an
fines of Five Thousand Pesos (5,000.00), if filed aggrieved party within seven (7) calendar days
within six (6) months after the prescribed period after receipt of the Order of Denial/Cancellation.
and Ten Thousand Pesos (10,000.00), if filed after The DOLE Regional Director shall resolve the said
six (6) months. Failure to renew the AEP within Motion for Reconsideration within ten (10)
one (1) year after its expiration shall be a cause calendar days from receipt thereof.
for its revocation or cancellation.
A motion for Reconsideration filed after the period
6. The employer shall notify the DOLE-RO which of seven (7) calendar days but within ten (10)
issued the permit of the date of the assumption to calendar days after receipt of the denial shall be
duty of the foreign national within thirty (30) days treated as an appeal.
from issuance of the permit.
An appeal from the decision of the DOLE Regional
7. Validity of Permits - The validity of permits shall Director may be filed with the Secretary of labor
be as follows: and Employment within ten (10) calendar days
from receipt of an Order from the DOLE Regional
7.1. As a general rule, the validity of permits shall Director. The decision of the Secretary of Labor
be for a period of one (1) year, unless the and Employment shall be final and unappealable.
employment contract, consultancy services, or
other modes of engagement or term of office for
elective officers, provides for a longer period. Rule IV
Penal and Transitory Provisions
7.2. The effectivity of the renewal shall be on the
day after the expiration of the previous permit, 1. The DOLE Regional Directors, after due notice
regardless of whether or not the renewal is and hearing, shall have the power to order and
granted before or after the expiration of the impose a fine of Five Thousand Pesos (P5,000.00)
previous permit. on foreign nationals found working without an
AEP for less than one (1) year and Ten Thousand
7.3. As a general rule, the permits shall be valid Pesos (P10,000.00) for more than one (1) year.
only for the position and the employer for which it
was issued, except in case of foreign nationals 2. All applications for employment
who are holders of multiple positions in one permit/certificates pending at the DOLE-RO upon
corporation, where one AEP shall be valid for the effectivity of these Guidelines shall be
such multiple positions. covered and processed under the provisions of
these Guidelines.
7.4. The permits of resident foreign nationals shall
be valid for multiple employers, regardless of the
nature and duration of their employment, 3. Holders of provisional and extended AEPs
provided that they shall report changes in their issued under Memorandum dated 24 August 2001
employment status and the identity of their regarding Alternative Interim Measures for the
employers to the DOLE Regional Office which has Issuance of Alien Employment Permits, shall
issued the permit. apply for an AEP pursuant to these Guidelines on
Rule III or before the expiration of the provisional and
Revocation/Cancellation of Employment Permits extended AEP.
Issued
4. Foreign nationals who are already working in
1. The permits issued may, motu proprio or upon the country and who have not yet secured the
a petition, be cancelled or revoked based on any requisite employment permit shall have ninety
of the following grounds: (90) days from the effectivity of these Guidelines

Duman / Labor I / Prof. Battad / Page 63

 to secure the said employment permit without ART. 83. Normal hours of work. - The normal hours of
penalty. work of any employee shall not exceed eight (8) hours
a day.
Rule V
Miscellaneous Provisions Health personnel in cities and municipalities with a
population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least
1. Manual of Operations. - The Bureau of Local one hundred (100) shall hold regular office hours for
Employment shall issue a Manual of Operations to eight (8) hours a day, for five (5) days a week,
implement the provisions of these Guidelines. exclusive of time for meals, except where the
exigencies of the service require that such personnel
work for six (6) days or forty-eight (48) hours, in which
2. Separability Clause. - If any provision or part of case, they shall be entitled to an additional
this Department Order or the application thereof compensation of at least thirty percent (30%) of their
to any person or circumstance is held invalid by regular wage for work on the sixth day. For purposes
the Courts, the remaining valid provisions of this of this Article, "health personnel" shall include resident
Department Order shall not be affected. physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians,
3. Repealing Clause. - All guidelines, rules and paramedical technicians, psychologists, midwives,
regulations and agreements inconsistent herewith attendants and all other hospital or clinic personnel.
are hereby repealed or modified accordingly.
ART. 84. Hours worked. - Hours worked shall include
4. Effectivity. - These guidelines shall take effect (a) all time during which an employee is required to
fifteen (15) days after its publication in two (2) be on duty or to be at a prescribed workplace; and (b)
newspapers of general circulation. all time during which an employee is suffered or
Constitution, Art. XII, Sec. 12 permitted to work.

Section 12. The State shall promote the preferential Rest periods of short duration during working hours
use of Filipino labor, domestic materials and locally shall be counted as hours worked.
produced goods, and adopt measures that help make
them competitive.
ART. 85. Meal periods. - Subject to such regulations
as the Secretary of Labor may prescribe, it shall be
F. Conditions of Work the duty of every employer to give his employees not
less than sixty (60) minutes time-off for their regular
Reference: Arts. 82-90; Omnibus Rules, Book III, Rules l, meals.
lA, ll

Title I ART. 86. Night shift differential. - Every employee

WORKING CONDITIONS shall be paid a night shift differential of not less than
AND REST PERIODS ten percent (10%) of his regular wage for each hour of
work performed between ten o’clock in the evening
Chapter I and six o’clock in the morning.
HOURS OF WORK
ART. 87. Overtime work. - Work may be performed
ART. 82. Coverage. - The provisions of this Title shall beyond eight (8) hours a day provided that the
apply to employees in all establishments and employee is paid for the overtime work, an additional
undertakings whether for profit or not, but not to compensation equivalent to his regular wage plus at
government employees, managerial employees, field least twenty-five percent (25%) thereof. Work
personnel, members of the family of the employer performed beyond eight hours on a holiday or rest
who are dependent on him for support, domestic day shall be paid an additional compensation
helpers, persons in the personal service of another, equivalent to the rate of the first eight hours on a
and workers who are paid by results as determined by holiday or rest day plus at least thirty percent (30%)
the Secretary of Labor in appropriate regulations. thereof.

As used herein, "managerial employees" refer to ART. 88. Undertime not offset by overtime. -
those whose primary duty consists of the Undertime work on any particular day shall not be
management of the establishment in which they are offset by overtime work on any other day. Permission
employed or of a department or subdivision thereof, given to the employee to go on leave on some other
and to other officers or members of the managerial day of the week shall not exempt the employer from
staff. paying the additional compensation required in this
Chapter.
"Field personnel" shall refer to non-agricultural
employees who regularly perform their duties away ART. 89. Emergency overtime work. - Any employee
from the principal place of business or branch office of may be required by the employer to perform overtime
the employer and whose actual hours of work in the work in any of the following cases:chan robles virtual
field cannot be determined with reasonable certainty. law library

Duman / Labor I / Prof. Battad / Page 64

(a) When the country is at war or when any other (3) They have the authority to hire or fire employees
national or local emergency has been declared by the of lower rank; or their suggestions and
National Assembly or the Chief Executive; recommendations as to hiring and firing and as to the
promotion or any other change of status of other
(b) When it is necessary to prevent loss of life or employees, are given particular weight.
property or in case of imminent danger to public
safety due to an actual or impending emergency in (c) Officers or members of a managerial staff if they
the locality caused by serious accidents, fire, flood, perform the following duties and responsibilities:
typhoon, earthquake, epidemic, or other disaster or
calamity; (1) The primary duty consists of the performance of
work directly related to management policies of their
(c) When there is urgent work to be performed on employer;
machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or (2) Customarily and regularly exercise discretion and
some other cause of similar nature; independent judgment; and

(d) When the work is necessary to prevent loss or (3) (i) Regularly and directly assist a proprietor or a
damage to perishable goods; and managerial employee whose primary duty consists of
the management of the establishment in which he is
(e) Where the completion or continuation of the work employed or subdivision thereof; or (ii) execute under
started before the eighth hour is necessary to prevent general supervision work along specialized or
serious obstruction or prejudice to the business or technical lines requiring special training, experience,
operations of the employer. or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
Any employee required to render overtime work under
this Article shall be paid the additional compensation (4) Who do not devote more than 20 percent of their
required in this Chapter. hours worked in a work week to activities which are
not directly and closely related to the performance of
ART. 90. Computation of additional compensation. - the work described in paragraphs (1), (2) and (3)
For purposes of computing overtime and other above.
additional remuneration as required by this Chapter,
the "regular wage" of an employee shall include the (d) Domestic servants and persons in the personal
cash wage only, without deduction on account of service of another if they perform such services in the
facilities provided by the employer. employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
BOOK THREE or minister to the personal comfort, convenience, or
Conditions of Employment safety of the employer as well as the members of his
employer's household.
RULE I
Hours of Work (e) Workers who are paid by results, including those
who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
SECTION 1. General statement on coverage. — The in accordance with the standards prescribed under
provisions of this Rule shall apply to all employees in Section 8, Rule VII, Book Three of these regulations,
all establishments and undertakings, whether or where such rates have been fixed by the Secretary
operated for profit or not, except to those specifically of Labor and Employment in accordance with the
exempted under Section 2 hereof. aforesaid Section.

SECTION 2. Exemption. — The provisions of this (f) Non-agricultural field personnel if they regularly
Rule shall not apply to the following persons if they perform their duties away from the principal or branch
qualify for exemption under the conditions set forth office or place of business of the employer and whose
herein: actual hours of work in the field cannot be determined
with reasonable certainty.
(a) Government employees whether employed by the
National Government or any of its political SECTION 3. Hours worked. — The following shall be
subdivision, including those employed in government- considered as compensable hours worked:
owned and/or controlled corporations;
(a) All time during which an employee is required to
(b) Managerial employees, if they meet all of the be on duty or to be at the employer's premises or to
following conditions: be at a prescribed work place; and

(1) Their primary duty consists of the management of (b) All time during which an employee is suffered or
the establishment in which they are employed or of a permitted to work.
department or sub-division thereof.
SECTION 4. Principles in determining hours worked.
(2) They customarily and regularly direct the work of — The following general principles shall govern in
two or more employees therein.

Duman / Labor I / Prof. Battad / Page 65

determining whether the time spent by an employee is (a) Where the work is non-manual work in nature or
considered hours worked for purposes of this Rule: does not involve strenuous physical exertion;

(a) All hours are hours worked which the employee is (b) Where the establishment regularly operates not
required to give his employer, regardless of whether less than sixteen (16) hours a day;
or not such hours are spent in productive labor or
involve physical or mental exertion. (c) In case of actual or impending emergencies or
there is urgent work to be performed on machineries,
(b) An employee need not leave the premises of the equipment or installations to avoid serious loss which
work place in order that his rest period shall not be the employer would otherwise suffer; and
counted, it being enough that he stops working, may
rest completely and may leave his work place, to go (d) Where the work is necessary to prevent serious
elsewhere, whether within or outside the premises of loss of perishable goods.
his work place.
Rest periods or coffee breaks running from five (5) to
(c) If the work performed was necessary, or it twenty (20) minutes shall be considered as
benefited the employer, or the employee could not compensable working time.
abandon his work at the end of his normal working
hours because he had no replacement, all time spent
for such work shall be considered as hours worked, if SECTION 8. Overtime pay. — Any employee covered
the work was with the knowledge of his employer or by this Rule who is permitted or required to work
immediate supervisor. beyond eight (8) hours on ordinary working days shall
be paid an additional compensation for the overtime
work in the amount equivalent to his regular wage
(d) The time during which an employee is inactive by plus at least twenty-five percent (25%) thereof.
reason of interruptions in his work beyond his control
shall be considered working time either if the
imminence of the resumption of work requires the SECTION 9. Premium and overtime pay for holiday
employee's presence at the place of work or if the and rest day work. — (a) Except employees referred
interval is too brief to be utilized effectively and to under Section 2 of this Rule, an employee who is
gainfully in the employee's own interest. permitted or suffered to work on special holidays or
on his designated rest days not falling on regular
holidays, shall be paid with an additional
SECTION 5. Waiting time. — (a) Waiting time spent compensation as premium pay of not less than thirty
by an employee shall be considered as working time if percent (30%) of his regular wage. For work
waiting is an integral part of his work or the employee performed in excess of eight (8) hours on special
is required or engaged by the employer to wait. holidays and rest days not falling on regular holidays,
an employee shall be paid an additional
(b) An employee who is required to remain on call in compensation for the overtime work equivalent to his
the employer's premises or so close thereto that he rate for the first eight hours on a special holiday or
cannot use the time effectively and gainfully for his rest day plus at least thirty percent (30%) thereof.
own purpose shall be considered as working while on
call. An employee who is not required to leave word at (b) Employees of public utility enterprises as well as
his home or with company officials where he may be those employed in non-profit institutions and
reached is not working while on call. organizations shall be entitled to the premium and
overtime pay provided herein, unless they are
SECTION 6. Lectures, meetings, training programs. specifically excluded from the coverage of this Rule
— Attendance at lectures, meetings, training as provided in Section 2 hereof.
programs, and other similar activities shall not be
counted as working time if all of the following (c) The payment of additional compensation for work
conditions are met: performed on regular holidays shall be governed by
Rule IV, Book Three, of these Rules.
(a) Attendance is outside of the employee's regular
working hours; SECTION 10. Compulsory overtime work. — In any of
the following cases, an employer may require any of
(b) Attendance is in fact voluntary; and his employees to work beyond eight (8) hours a day,
provided that the employee required to render
(c) The employee does not perform any productive overtime work is paid the additional compensation
work during such attendance. required by these regulations:

SECTION 7. Meal and Rest Periods. — Every (a) When the country is at war or when any other
employer shall give his employees, regardless of sex, national or local emergency has been declared by
not less than one (1) hour time-off for regular meals, Congress or the Chief Executive;
except in the following cases when a meal period of
not less than twenty (20) minutes may be given by the (b) When overtime work is necessary to prevent loss
employer provided that such shorter meal period is of life or property, or in case of imminent danger to
credited as compensable hours worked of the public safety due to actual or impending emergency in
employee: the locality caused by serious accident, fire, floods,
typhoons, earthquake, epidemic or other disaster or
calamities;
Duman / Labor I / Prof. Battad / Page 66
(c) When there is urgent work to be performed on census issued by the Bureau of the Census and
machines, installations, or equipment, in order to Statistics.
avoid serious loss or damage to the employer or
some other causes of similar nature; SECTION 4. Personnel covered by this Rule. — This
Rule applies to all persons employed by any private
(d) When the work is necessary to prevent loss or or public hospital or clinic mentioned in Section 1
damage to perishable goods; hereof, and shall include, but not limited to, resident
physicians, nurses, nutritionists, dieticians,
(e) When the completion or continuation of work pharmacists, social workers, laboratory technicians
started before the 8th hour is necessary to prevent paramedical technicians, psychologists, midwives,
serious obstruction or prejudice to the business or and attendants.
operations of the employer; or
SECTION 5. Regular working hours. — The regular
(f) When overtime work is necessary to avail of working hours of any person covered by this Rule
favorable weather or environmental conditions where shall not be more than eight (8) hours in any one day
performance or quality of work is dependent thereon. nor more than forty (40) hours in any one week.

In cases not falling within any of these enumerated in For purposes of this Rule a "day" shall mean a work
this Section, no employee may be made to work day of twenty-four (24) consecutive hours beginning
beyond eight hours a day against his will. at the same time each calendar year. A "week" shall
mean the work of 168 consecutive hours, or seven
consecutive 24-hour work days, beginning at the
RULE I-A same hour and on the same calendar day each
Hours of Work of Hospital and Clinic Personnel calendar week.

SECTION 1. General statement on coverage. — This SECTION 6. Regular working days. — The regular
Rule shall apply to: working days of covered employees shall not be more
than five days in a work week. The work week may
(a) All hospitals and clinics, including those with a bed begin at any hour and on any day, including Saturday
capacity of less than one hundred (100) which are or Sunday, designated by the employer.
situated in cities or municipalities with a population of
one million or more; and Employers are not precluded from changing the time
at which the work day or work week begins, provided
(b) All hospitals and clinics with a bed capacity of at that the change is not intended to evade the
least one hundred (100), irrespective of the size of the requirements of this Rule.
population of the city or municipality where they may
be situated. SECTION 7. Overtime work. — Where the exigencies
of the service so require as determined by the
SECTION 2. Hospitals or clinics within the meaning of employer, any employee covered by this Rule may be
this Rule. — The terms "hospitals" and "clinics" as scheduled to work for more than five (5) days or forty
used in this Rule shall mean a place devoted primarily (40) hours a week, provided that the employee is paid
to the maintenance and operation of facilities for the for the overtime work an additional compensation
diagnosis, treatment and care of individuals suffering equivalent to his regular wage plus at least thirty
from illness, disease, injury, or deformity, or in need of percent (30%) thereof, subject to the provisions of this
obstetrical or other medical and nursing care. Either Book on the payment of additional compensation for
term shall also be construed as any institution, work performed on special and regular holidays and
building, or place where there are installed beds, or on rest days.
cribs, or bassinets for twenty-four (24) hours use or
longer by patients in the treatment of disease, injuries, SECTION 8. Hours worked. — In determining the
deformities, or abnormal physical and mental states, compensable hours of work of hospital and clinic
maternity cases or sanitorial care; or infirmaries, personnel covered by this Rule, the pertinent
nurseries, dispensaries, and such other similar names provisions of Rule 1 of this Book shall apply.
by which they may be designated.
SECTION 9. Additional compensation. — Hospital
SECTION 3. Determination of bed capacity and and clinic personnel covered by this Rule, with the
population. — (a) For purposes of determining the exception of those employed by the Government,
applicability of this Rule, the actual bed capacity of shall be entitled to an additional compensation for
the hospital or clinic at the time of such determination work performed on regular and special holidays and
shall be considered, regardless of the actual or bed rest days as provided in this Book. Such employees
occupancy. The bed capacity of hospital or clinic as shall also be entitled to overtime pay for services
determined by the Bureau of Medical Services rendered in excess of forty hours a week, or in excess
pursuant to Republic Act No. 4226, otherwise known of eight hours a day, whichever will yield the higher
as the Hospital Licensure Act, shall prima facie be additional compensation to the employee in the work
considered as the actual bed capacity of such hospital week.
or clinic.
SECTION 10. Relation to Rule I. — All provisions of
(b) The size of the population of the city or Rule I of this Book which are not inconsistent with this
municipality shall be determined from the latest official

Duman / Labor I / Prof. Battad / Page 67

Rule shall be deemed applicable to hospital and clinic
personnel. a. Regulation; Rationale

 Manila Terminal Co. Inc. v. CIR, 91

RULE II Phil. 625 (1952)
Night Shift Differential

SECTION 1. Coverage. — This Rule shall apply to all

employees except:

(a) Those of the government and any of its political

subdivisions, including government-owned and/or
controlled corporations;

(b) Those of retail and service establishments

regularly employing not more than five (5) workers;

(c) Domestic helpers and persons in the personal

service of another;

(d) Managerial employees as defined in Book Three

of this Code;

(e) Field personnel and other employees whose time

and performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are paid
a fixed amount for performing work irrespective of the
time consumed in the performance thereof.

SECTION 2. Night shift differential. — An employee

shall be paid night shift differential of no less than ten
per cent (10%) of his regular wage for each hour of
work performed between ten o'clock in the evening b. Coverage/Exemptions, Art. 82, 276; Rule l,
Sec.s 1-4
and six o'clock in the morning.
(See Above)
SECTION 3. Additional compensation. — Where an
employee is permitted or suffered to work on the 1) Government Employees, Const., Art. IX-B, Sec.
period covered after his work schedule, he shall be 2(1)
entitled to his regular wage plus at least twenty-five
per cent (25%) and an additional amount of no less
than ten per cent (10%) of such overtime rate for each ARTICLE IX – B. THE CIVIL SERVICE
hour or work performed between 10 p.m. to 6 a.m. COMMISSION
Section 2. (1) The civil service embraces all
branches, subdivisions, instrumentalities, and
SECTION 4. Additional compensation on scheduled agencies of the Government, including government-
rest day/special holiday. — An employee who is owned or controlled corporations with original
required or permitted to work on the period covered charters.
during rest days and/or special holidays not falling on
regular holidays, shall be paid a compensation 2) Managerial Employees, Art. 82; Rule I, Sec. 2 (b)
equivalent to his regular wage plus at least thirty (c)
(30%) per cent and an additional amount of not less
than ten (10%) per cent of such premium pay rate for
each hour of work performed.
(b) Managerial employees, if they meet all of the
SECTION 5. Additional compensation on regular following conditions:
holidays. — For work on the period covered during
regular holidays, an employee shall be entitled to his (1) Their primary duty consists of the management of
regular wage during these days plus an additional the establishment in which they are employed or of a
compensation of no less than ten (10%) per cent of department or sub-division thereof.
such premium rate for each hour of work performed.

(2) They customarily and regularly direct the work of

SECTION 6. Relation to agreements. — Nothing in two or more employees therein.
this Rule shall justify an employer in withdrawing or
reducing any benefits, supplements or payments as
provided in existing individual or collective (3) They have the authority to hire or fire employees
agreements or employer practice or policy. of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the
promotion or any other change of status of other
1. Hours of Work
employees, are given particular weight.
Duman / Labor I / Prof. Battad / Page 68
 (c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:

(1) The primary duty consists of the performance of

work directly related to management policies of their
employer;

(2) Customarily and regularly exercise discretion and

independent judgment; and

(3) (i) Regularly and directly assist a proprietor or a

managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience,
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and

(4) Who do not devote more than 20 percent of their

hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
above.

 Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 3) Field Personnel, Art. 82; Rule I, Sec. 2 (f)
(2004)
 Merdicar Fishing Corp v. NLRC, 297
SCRA 440 (1998)

 Charlito Peñranda v. Baganga Plywood Corp., et al., G.R.  Auto Bus Transport Systems, Inc.
159577, May 3, 2006 v. Bautista, 458 SCRA 578 (2005)

Duman / Labor I / Prof. Battad / Page 69

 or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.

7) Piece Workers, Rule I, Sec. 2 (e)

(e) Workers who are paid by results, including those

who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
in accordance with the standards prescribed under
Section 8, Rule VII, Book Three of these regulations,
or where such rates have been fixed by the Secretary
of Labor and Employment in accordance with the
aforesaid Section.

 Labor Congress v. NLRC, 290

SCRA 509 (1998)

4) Dependent Family Members

c. Normal Hours of Work, Art. 83
5) Domestic Helpers, Art. 141, 145; Rule I, Sec. 2 (d)

Chapter III
EMPLOYMENT OF HOUSEHELPERS ART. 83. Normal hours of work. - The normal hours of work
ART. 141. Coverage. - This Chapter shall apply to all persons of any employee shall not exceed eight (8) hours a day.
rendering services in households for compensation.
Health personnel in cities and municipalities with a
"Domestic or household service" shall mean service in the population of at least one million (1,000,000) or in hospitals
employer’s home which is usually necessary or desirable for and clinics with a bed capacity of at least one hundred (100)
the maintenance and enjoyment thereof and includes shall hold regular office hours for eight (8) hours a day, for
ministering to the personal comfort and convenience of the five (5) days a week, exclusive of time for meals, except
members of the employer’s household, including services of where the exigencies of the service require that such
family drivers. personnel work for six (6) days or forty-eight (48) hours, in
which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their
ART. 145. Assignment to non-household work. - No regular wage for work on the sixth day. For purposes of this
househelper shall be assigned to work in a commercial, Article, "health personnel" shall include resident physicians,
industrial or agricultural enterprise at a wage or salary rate nurses, nutritionists, dietitians, pharmacists, social workers,
lower than that provided for agricultural or non-agricultural laboratory technicians, paramedical technicians,
workers as prescribed herein. psychologists, midwives, attendants and all other hospital or
clinic personnel.

(d) Domestic servants and persons in the personal

service of another if they perform such services in the d. Compensable Hours of Work – In general
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof, 1) On Duty, Art. 84 (a); Rule I, Sec. 3 (a), Sec. 4 (a)
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household. ART. 84. Hours worked. - Hours worked shall include (a) all
time during which an employee is required to be on duty or
6) Persons in the Personal Service of Another, Rule I, Sec. 2 (d) to be at a prescribed workplace; and (b) all time during
which an employee is suffered or permitted to work.

(d) Domestic servants and persons in the personal Rest periods of short duration during working hours shall be
counted as hours worked.
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
Duman / Labor I / Prof. Battad / Page 70
 SECTION 3. Hours worked. — The following shall be
considered as compensable hours worked: a) Regular Meal Period (One Hour), Art. 85; Rule I, Sec. 7, 1 st
par.
(a) All time during which an employee is required to ART. 85. Meal periods. - Subject to such regulations as the
be on duty or to be at the employer's premises or to Secretary of Labor may prescribe, it shall be the duty of
be at a prescribed work place; and every employer to give his employees not less than sixty
(60) minutes time-off for their regular meals.
SECTION 4. Principles in determining hours worked.
— The following general principles shall govern in SECTION 7. Meal and Rest Periods. — Every employer shall
give his employees, regardless of sex, not less than one (1)
determining whether the time spent by an employee is
hour time-off for regular meals, except in the following cases
considered hours worked for purposes of this Rule: when a meal period of not less than twenty (20) minutes
may be given by the employer provided that such shorter
(a) All hours are hours worked which the employee is meal period is credited as compensable hours worked of the
required to give his employer, regardless of whether employee:
or not such hours are spent in productive labor or
involve physical or mental exertion.  Philippine Airlines, Inc. v. NLRC, 302 SCRA 582 (1999)

3) At Work, Art. 84 (b); Rule I, Sec. 3 (b)

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

Sec. 3(b) All time during which an employee is

suffered or permitted to work.

b) Shorter Meal Period (Less than One Hour, but Not Less
e. Specific Rules than 20 min.), Rule I, Sec. 7, 1st par.

1) Rest Period (See Above)

a) Short Duration or “Coffee Break”, Art. 84, 2 nd par.; Book III, 4) Waiting Time, Rule I, Sec. 5 (a)
Rule I, Sec. 7, 2nd par.
SECTION 5. Waiting time. — (a) Waiting time spent by an
employee shall be considered as working time if waiting is
an integral part of his work or the employee is required or
Rest periods of short duration during working hours shall be engaged by the employer to wait.
counted as hours worked.
 Arica v. NLRC, 170 SCRA 776
SECTION 7. Meal and Rest Periods. — Every employer shall (1989)
give his employees, regardless of sex, not less than one (1)
hour time-off for regular meals, except in the following cases
when a meal period of not less than twenty (20) minutes
may be given by the employer provided that such shorter
meal period is credited as compensable hours worked of the
employee:

Rest periods or coffee breaks running from five (5) to twenty

(20) minutes shall be considered as compensable working
time.

b) More than 20 min., Rules I, Sec. 4 (b)

SECTION 4. Principles in determining hours worked. —

The following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:

(b) An employee need not leave the premises of the

work place in order that his rest period shall not be counted,
it being enough that he stops working, may rest completely
and may leave his work place, to go elsewhere, whether
within or outside the premises of his work place.

2) Meal Period
Duman / Labor I / Prof. Battad / Page 71
 4) On Call, Rule I, Sec. 5 (b)

b) An employee who is required to remain on call in the

employer's premises or so close thereto that he cannot use
the time effectively and gainfully for his own purpose shall
be considered as working while on call. An employee who is
not required to leave word at his home or with company
officials where he may be reached is not working while on
call.

5) Inactive due to Work Interruptions, Book III, Rule I,

Sec. 4 (d)

SECTION 4. Principles in determining hours worked. — The

following general principles shall govern in determining
whether the time spent by an employee is considered hours
worked for purposes of this Rule:

(d) The time during which an employee is inactive by reason

of interruptions in his work beyond his control shall be f. Overtime Work Pay, Arts. 87-90; Rule I, Secs. 8-11
considered working time either if the imminence of the
resumption of work requires the employee's presence at the
place of work or if the interval is too brief to be utilized
ART. 87. Overtime work. - Work may be performed
effectively and gainfully in the employee's own interest.
beyond eight (8) hours a day provided that the employee
is paid for the overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-five
 University of Pangasinan
percent (25%) thereof. Work performed beyond eight
Faculty Union v. University of Pangasinan, 127 SCRA 691
hours on a holiday or rest day shall be paid an additional
(1984)
compensation equivalent to the rate of the first eight
hours on a holiday or rest day plus at least thirty percent
(30%) thereof.

ART. 88. Undertime not offset by overtime. - Undertime

work on any particular day shall not be offset by overtime
work on any other day. Permission given to the employee
to go on leave on some other day of the week shall not
exempt the employer from paying the additional
compensation required in this Chapter.
6) Work after Normal Hours, Rule I, Sec. 4 (c)
ART. 89. Emergency overtime work. - Any employee may
(c) If the work performed was necessary, or it benefited the be required by the employer to perform overtime work in
employer, or the employee could not abandon his work at any of the following cases:chan robles virtual law library
the end of his normal working hours because he had no
replacement, all time spent for such work shall be
considered as hours worked, if the work was with the (a) When the country is at war or when any other national
knowledge of his employer or immediate supervisor. or local emergency has been declared by the National
Assembly or the Chief Executive;
7) Lectures, Meetings, Training Programs, Rule I, Sec. 6
(b) When it is necessary to prevent loss of life or property
or in case of imminent danger to public safety due to an
SECTION 6. Lectures, meetings, training programs. — actual or impending emergency in the locality caused by
Attendance at lectures, meetings, training programs, and serious accidents, fire, flood, typhoon, earthquake,
other similar activities shall not be counted as working time epidemic, or other disaster or calamity;
if all of the following conditions are met:
(c) When there is urgent work to be performed on
(a) Attendance is outside of the employee's regular working machines, installations, or equipment, in order to avoid
hours; serious loss or damage to the employer or some other
cause of similar nature;

(b) Attendance is in fact voluntary; and

(d) When the work is necessary to prevent loss or
damage to perishable goods; and
(c) The employee does not perform any productive work
during such attendance.
(e) Where the completion or continuation of the work
started before the eighth hour is necessary to prevent
8) Travel Time serious obstruction or prejudice to the business or
operations of the employer.
 Rada v. NLRC, 205 SCRA 69
(1992)
Any employee required to render overtime work under
this Article shall be paid the additional compensation
required in this Chapter.

ART. 90. Computation of additional compensation. - For

purposes of computing overtime and other additional

Duman / Labor I / Prof. Battad / Page 72

 remuneration as required by this Chapter, the "regular In cases not falling within any of these enumerated in this
wage" of an employee shall include the cash wage only, Section, no employee may be made to work beyond eight
without deduction on account of facilities provided by the hours a day against his will.
employer.
1) Overtime in Ordinary Working Day, Art. 87; Rule I,
RULE I Sec. 8

2) Emergency or Compulsory Overtime Work, Art. 89

SECTION 8. Overtime pay. — Any employee covered by this
Rule who is permitted or required to work beyond eight (8)
3) Undertime Work/Leave, Art. 88
hours on ordinary working days shall be paid an additional
compensation for the overtime work in the amount
4) Additional Compensation, Art. 87
equivalent to his regular wage plus at least twenty-five
percent (25%) thereof.
5) No Computation Formula Basic Contract

SECTION 9. Premium and overtime pay for holiday and rest  Manila Terminal Co., Inc. v.
day work. — (a) Except employees referred to under Section CIR, supra
2 of this Rule, an employee who is permitted or suffered to
work on special holidays or on his designated rest days not
falling on regular holidays, shall be paid with an additional
compensation as premium pay of not less than thirty percent
(30%) of his regular wage. For work performed in excess of
eight (8) hours on special holidays and rest days not falling
on regular holidays, an employee shall be paid an additional
compensation for the overtime work equivalent to his rate
for the first eight hours on a special holiday or rest day plus
at least thirty percent (30%) thereof.

(b) Employees of public utility enterprises as well as those

employed in non-profit institutions and organizations shall be
entitled to the premium and overtime pay provided herein,
unless they are specifically excluded from the coverage of
this Rule as provided in Section 2 hereof.

(c) The payment of additional compensation for work

performed on regular holidays shall be governed by Rule IV,
Book Three, of these Rules.

SECTION 10. Compulsory overtime work. — In any of the

following cases, an employer may require any of his
employees to work beyond eight (8) hours a day, provided 6) Proof of Work/Employer Obligation
that the employee required to render overtime work is paid
the additional compensation required by these regulations:  Social Security System v.
Court of Appeals, 348 SCRA 1 (2000)

(a) When the country is at war or when any other national

or local emergency has been declared by Congress or the
Chief Executive;

(b) When overtime work is necessary to prevent loss of life

or property, or in case of imminent danger to public safety
due to actual or impending emergency in the locality caused
by serious accident, fire, floods, typhoons, earthquake,
epidemic or other disaster or calamities;

(c) When there is urgent work to be performed on machines,

installations, or equipment, in order to avoid serious loss or
damage to the employer or some other causes of similar
nature;

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

to perishable goods;

(e) When the completion or continuation of work started

before the 8th hour is necessary to prevent serious
obstruction or prejudice to the business or operations of the
employer; or

(f) When overtime work is necessary to avail of favorable

weather or environmental conditions where performance or
quality of work is dependent thereon.

g. Nightwork, Art. 86; Rule II, Secs. 1-6

Duman / Labor I / Prof. Battad / Page 73

 (e) Where the nature of the work is such that the employees
ART. 86. Night shift differential. - Every employee shall be have to work continuously for seven (7) days in a week or
paid a night shift differential of not less than ten percent more, as in the case of the crew members of a vessel to
(10%) of his regular wage for each hour of work performed complete a voyage and in other similar cases; and
between ten o’clock in the evening and six o’clock in the
morning.
(f) When the work is necessary to avail of favorable weather
or environmental conditions where performance or quality of
work is dependent thereon.
SECTION 1. General statement on coverage. — This Rule
shall apply to all employers whether operating for profit or
No employee shall be required against his will to work on his
not, including public utilities operated by private persons.
scheduled rest day except under circumstances provided in
this Section: Provided, However, that where an employee
SECTION 2. Business on Sundays/Holidays. — All volunteers to work on his rest day under other
establishments and enterprises may operate or open for circumstances, he shall express such desire in writing,
business on Sundays and holidays provided that the subject to the provisions of Section 7 hereof regarding
employees are given the weekly rest day and the benefits as additional compensation.
provided in this Rule.
1) Coverage/Exclusion,
SECTION 3. Weekly rest day. — Every employer shall give Rule II, Sec. 1
his employees a rest period of not less than twenty-four (24)
consecutive hours after every six consecutive normal work 2) Additional
days. Compensation, Art. 86

 Shell Oil Co. of the

SECTION 4. Preference of employee. — The preference of
Philippines, Ltd. v. National Labor Union, 81 Phil. 315 (1948)
the employee as to his weekly day of rest shall be respected
by the employer if the same is based on religious grounds.
The employee shall make known his preference to the
employer in writing at least seven (7) days before the
desired effectivity of the initial rest day so preferred.

Where, however, the choice of the employee as to his rest

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

SECTION 5. Schedule of rest day. — (a) Where the weekly

rest is given to all employees simultaneously, the employer 2. Weekly rest Periods
shall make known such rest period by means of a written
notice posted conspicuously in the work place at least one Reference: Arts. 91-93; Omnibus Rules, Book III,
week before it becomes effective. Rule III, Secs. 1-9

(b) Where the rest period is not granted to all employees Chapter II
simultaneously and collectively, the employer shall make WEEKLY REST PERIODS
known to the employees their respective schedules of ART. 91. Right to weekly rest day. - (a) It shall be the duty
weekly rest through written notices posted conspicuously in of every employer, whether operating for profit or not, to
the work place at least one week before they become provide each of his employees a rest period of not less than
effective. twenty-four (24) consecutive hours after every six (6)
consecutive normal work days.
SECTION 6. When work on rest day authorized. — An
employer may require any of his employees to work on his (b) The employer shall determine and schedule the weekly
scheduled rest day for the duration of the following rest day of his employees subject to collective bargaining
emergencies and exceptional conditions: agreement and to such rules and regulations as the
Secretary of Labor and Employment may provide. However,
(a) In case of actual or impending emergencies caused by the employer shall respect the preference of employees as
serious accident, fire, flood, typhoon, earthquake, epidemic to their weekly rest day when such preference is based on
or other disaster or calamity, to prevent loss of life or religious grounds.
property, or in cases of force majeure or imminent danger to
public safety; ART. 92. When employer may require work on a rest day. -
The employer may require his employees to work on any
(b) In case of urgent work to be performed on machineries, day:
equipment or installations to avoid serious loss which the
employer would otherwise suffer; (a) In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic
(c) In the event of abnormal pressure of work due to special or other disaster or calamity to prevent loss of life and
circumstances, where the employer cannot ordinarily be property, or imminent danger to public safety;
expected to resort to other measures;
(b) In cases of urgent work to be performed on the
(d) To prevent serious loss of perishable goods; machinery, equipment, or installation, to avoid serious loss
which the employer would otherwise suffer;
Duman / Labor I / Prof. Battad / Page 74
(c) In the event of abnormal pressure of work due to special schedule the weekly rest day of his choice for at least two
circumstances, where the employer cannot ordinarily be (2) days in a month.
expected to resort to other measures;
SECTION 5. Schedule of rest day. — (a) Where the weekly
(d) To prevent loss or damage to perishable goods; rest is given to all employees simultaneously, the employer
shall make known such rest period by means of a written
notice posted conspicuously in the work place at least one
(e) Where the nature of the work requires continuous
week before it becomes effective.
operations and the stoppage of work may result in
irreparable injury or loss to the employer; and
(b) Where the rest period is not granted to all employees
simultaneously and collectively, the employer shall make
(f) Under other circumstances analogous or similar to the
known to the employees their respective schedules of
foregoing as determined by the Secretary of Labor and
weekly rest through written notices posted conspicuously in
Employment.
the work place at least one week before they become
effective.
ART. 93. Compensation for rest day, Sunday or holiday
work. - (a) Where an employee is made or permitted to
SECTION 6. When work on rest day authorized. — An
work on his scheduled rest day, he shall be paid an
employer may require any of his employees to work on his
additional compensation of at least thirty percent (30%) of
scheduled rest day for the duration of the following
his regular wage. An employee shall be entitled to such
emergencies and exceptional conditions:
additional compensation for work performed on Sunday only
when it is his established rest day.chan robles virtual law
library (a) In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic
or other disaster or calamity, to prevent loss of life or
(b) When the nature of the work of the employee is such
property, or in cases of force majeure or imminent danger to
that he has no regular workdays and no regular rest days
public safety;
can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular
wage for work performed on Sundays and holidays. (b) In case of urgent work to be performed on machineries,
equipment or installations to avoid serious loss which the
employer would otherwise suffer;
(c) Work performed on any special holiday shall be paid an
additional compensation of at least thirty percent (30%) of
the regular wage of the employee. Where such holiday work (c) In the event of abnormal pressure of work due to special
falls on the employee’s scheduled rest day, he shall be circumstances, where the employer cannot ordinarily be
entitled to an additional compensation of at least fifty per expected to resort to other measures;
cent (50%) of his regular wage.
(d) To prevent serious loss of perishable goods;
(d) Where the collective bargaining agreement or other
applicable employment contract stipulates the payment of a
(e) Where the nature of the work is such that the employees
higher premium pay than that prescribed under this Article,
have to work continuously for seven (7) days in a week or
the employer shall pay such higher rate.
more, as in the case of the crew members of a vessel to
complete a voyage and in other similar cases; and

Weekly Rest Periods

(f) When the work is necessary to avail of favorable weather
or environmental conditions where performance or quality of
SECTION 1. General statement on coverage. — This Rule work is dependent thereon.
shall apply to all employers whether operating for profit or
not, including public utilities operated by private persons.
No employee shall be required against his will to work on his
scheduled rest day except under circumstances provided in
SECTION 2. Business on Sundays/Holidays. — All this Section: Provided, However, that where an employee
establishments and enterprises may operate or open for volunteers to work on his rest day under other
business on Sundays and holidays provided that the circumstances, he shall express such desire in writing,
employees are given the weekly rest day and the benefits as subject to the provisions of Section 7 hereof regarding
provided in this Rule. additional compensation.

SECTION 3. Weekly rest day. — Every employer shall give SECTION 7. Compensation on rest day/Sunday/holiday. —
his employees a rest period of not less than twenty-four (24) (a) Except those employees referred to under Section 2,
consecutive hours after every six consecutive normal work Rule I, Book Three, an employee who is made or permitted
days. to work on his scheduled rest day shall be paid with an
additional compensation of at least 30% of his regular wage.
An employee shall be entitled to such additional
SECTION 4. Preference of employee. — The preference of
compensation for work performed on a Sunday only when it
the employee as to his weekly day of rest shall be respected
is his established rest day.
by the employer if the same is based on religious grounds.
The employee shall make known his preference to the
employer in writing at least seven (7) days before the (b) Where the nature of the work of the employee is such
desired effectivity of the initial rest day so preferred. that he has no regular work days and no regular rest days
can be scheduled, he shall be paid an additional
compensation of at least 30% of his regular wage for work
Where, however, the choice of the employee as to his rest
performed on Sundays and holidays.
day based on religious grounds will inevitably result in
serious prejudice or obstruction to the operations of the
undertaking and the employer cannot normally be expected (c) Work performed on any special holiday shall be paid with
to resort to other remedial measures, the employer may so an additional compensation of at least 30% of the regular
Duman / Labor I / Prof. Battad / Page 75
 wage of the employees. Where such holiday work falls on
the employee's scheduled rest day, he shall be entitled to
additional compensation of at least 50% of his regular wage.

(d) The payment of additional compensation for work

performed on regular holiday shall be governed by Rule IV,
Book Three, of these regulations.

(e) Where the collective bargaining agreement or other

applicable employment contract stipulates the payment of a
higher premium pay than that prescribed under this Section,
the employer shall pay such higher rate.

SECTION 8. Paid-off days. — Nothing in this Rule shall

justify an employer in reducing the compensation of his
employees for the unworked Sundays, holidays, or other rest
days which are considered paid-off days or holidays by
agreement or practice subsisting upon the effectivity of the
Code.

SECTION 9. Relation to agreements. — Nothing herein shall

prevent the employer and his employees or their c. Premium Pay, Art. 93 9a) (b) (c)
representatives in entering into any agreement with terms
more favorable to the employees than those provided d. CBA on Higher Premium Pay, Art. 93 (d)
herein, or be used to diminish any benefit granted to the
employees under existing laws, agreements, and voluntary 3. Holidays
employer practices.
Reference: art. 94; Executive Order 203 (1987); Omnibus
Rules, Book III, Rule IV

Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES
AND SERVICE CHARGES
ART. 94. Right to holiday pay. - (a) Every worker shall be
paid his regular daily wage during regular holidays, except in
retail and service establishments regularly employing less
than ten (10) workers;

a. Coverage, Art. 82, 91; Rule III, Sec. 1 (b) The employer may require an employee to work on any
holiday but such employee shall be paid a compensation
ART. 82. Coverage. - The provisions of this Title shall apply equivalent to twice his regular rate; and
to employees in all establishments and undertakings
whether for profit or not, but not to government employees,
managerial employees, field personnel, members of the (c) As used in this Article, "holiday" includes: New Year’s
family of the employer who are dependent on him for Day, Maundy Thursday, Good Friday, the ninth of April, the
support, domestic helpers, persons in the personal service of first of May, the twelfth of June, the fourth of July, the
another, and workers who are paid by results as determined thirtieth of November, the twenty-fifth and thirtieth of
by the Secretary of Labor in appropriate regulations. December and the day designated by law for holding a
general election.
As used herein, "managerial employees" refer to those
whose primary duty consists of the management of the EXECUTIVE ORDER NO. 203 June 30, 1987
establishment in which they are employed or of a
department or subdivision thereof, and to other officers or PROVIDING A LIST OF REGULAR HOLIDAYS AND
members of the managerial staff.
SPECIAL DAYS TO BE OBSERVED THROUGHOUT
THE PHILIPPINES AND FOR OTHER PURPOSES
"Field personnel" shall refer to non-agricultural employees
who regularly perform their duties away from the principal
place of business or branch office of the employer and WHEREAS, a Cabinet Assistance Secretariat
whose actual hours of work in the field cannot be Committee was constituted to review all existing
determined with reasonable certainty. public holidays;

b. Determination; compulsory Work; WHEREAS, there are too many holidays being
Compensation, Arts. 91, 92 observed which has caused confusion among the
public.
 Manila Electric Co. v. Public
Utilities Employees Assn, 79 Phil. 409
NOW, THEREFORE, I, CORAZON C. AQUINO,
President of the Philippines, do hereby order:

Sec. 1. Unless otherwise modified by law, order or

proclamation, the following regular holidays and
special days shall be observed in this country:

Duman / Labor I / Prof. Battad / Page 76

 (b) Those of retail and service establishments regularly
employing less than ten (10) workers;
A. Regular Holidays
(c) Domestic helpers and persons in the personal service of
New Year's Day January another;

(d) Managerial employees as defined in Book Three of the

Maundy Thursday Movable date
Code;

Good Friday Movable date (e) Field personnel and other employees whose time and
performance is unsupervised by the employer including
those who are engaged on task or contract basis, purely
Araw ng Kagitingan April 9 commission basis, or those who are paid a fixed amount for
(Bataan and Corregidor performing work irrespective of the time consumed in the
Day) performance thereof.

Labor Day May 1 SECTION 2. Status of employees paid by the month. —

Employees who are uniformly paid by the month,
irrespective of the number of working days therein, with a
Independence Day June 12 salary of not less than the statutory or established minimum
wage shall be paid for all days in the month whether worked
or not.
National Heroes Day Last Sunday of
August
For this purpose, the monthly minimum wage shall not be
less than the statutory minimum wage multiplied by 365
Bonifacio Day November 30 days divided by twelve.

SECTION 3. Holiday Pay. — Every employer shall pay his

Christmas Day December 25 employees their regular daily wage for any worked regular
holidays.
Rizal Day December 30
As used in the rule, the term 'regular holiday' shall
exclusively refer to: New Year's Day, Maundy Thursday,
B. Nationwide Special Days Good Friday, the ninth of April, the first of May, the twelfth
of June, the last Sunday of August, the thirtieth of
November, the twenty-fifth and thirtieth of December.
All Saints Day November 1 Nationwide special days shall include the first of November
and the last day of December.
Last Day of the Year December 31
As used in this Rule legal or regular holiday and special
holiday shall now be referred to as 'regular holiday' and
'special day', respectively.
Sec. 2. Henceforth, the terms "legal or regular
holiday" and "special holiday", as used in laws,
SECTION 4. Compensation for holiday work. — Any
orders, rules and regulations or other issuances shall employee who is permitted or suffered to work on any
now be referred to as "regular holiday" and "special regular holiday, not exceeding eight (8) hours, shall be paid
day", respectively. at least two hundred percent (200%) of his regular daily
wage. If the holiday work falls on the scheduled rest day of
Sec. 3. All laws, orders, issuances, rules and the employee, he shall be entitled to an additional premium
regulations or parts thereof inconsistent with this pay of at least 30% of his regular holiday rate of 200%
Executive Order are hereby repealed or modified based on his regular wage rate.
accordingly.
SECTION 5. Overtime pay for holiday work. — For work
performed in excess of eight hours on a regular holiday, an
Sec. 4. This Executive Order shall take effect
employee shall be paid an additional compensation for the
immediately. overtime work equivalent to his rate for the first eight hours
on such holiday work plus at least 30% thereof.
Done in the City of Manila, this 30th day of June, in
the year of Our Lord, nineteen hundred and eighty- Where the regular holiday work exceeding eight hours falls
seven. on the scheduled rest day of the employee, he shall be paid
an additional compensation for the overtime work equivalent
RULE IV to his regular holiday-rest day for the first 8 hours plus 30%
Holidays with Pay thereof. The regular holiday rest day rate of an employee
shall consist of 200% of his regular daily wage rate plus
30% thereof.
SECTION 1. Coverage. — This rule shall apply to all
employees except:
SECTION 6. Absences. — (a) All covered employees shall be
entitled to the benefit provided herein when they are on
(a) Those of the government and any of the political leave of absence with pay. Employees who are on leave of
subdivision, including government-owned and controlled absence without pay on the day immediately preceding a
corporation;

Duman / Labor I / Prof. Battad / Page 77

regular holiday may not be paid the required holiday pay if a. Definition
he has not worked on such regular holiday.
1) Retail Establishments, Rule Impl. RA 6727, par. F
(b) Employees shall grant the same percentage of the
f) “Retail Establishment” is one principally engaged in the
holiday pay as the benefit granted by competent authority in
sale of goods to end-users for personal or household use;
the form of employee's compensation or social security
payment, whichever is higher, if they are not reporting for
2) Service Establishment, Rule Impl. RA 6727, par. g
work while on such benefits.
g) “Service Establishment” is one principally engaged in the
(c) Where the day immediately preceding the holiday is a sale of service to individuals for their own or household use
non-working day in the establishment or the scheduled rest and is generally recognized as such;
day of the employee, he shall not be deemed to be on leave
of absence on that day, in which case he shall be entitled to
the holiday pay if he worked on the day immediately b. Coverage/Exclusions, Art. 94 (a)
preceding the non-working day or rest day.
ART. 94. Right to holiday pay. - (a) Every worker shall be
SECTION 7. Temporary or periodic shutdown and temporary paid his regular daily wage during regular holidays, except in
cessation of work. — (a) In cases of temporary or periodic retail and service establishments regularly employing less
shutdown and temporary cessation of work of an than ten (10) workers;
establishment, as when a yearly inventory or when the
repair or cleaning of machineries and equipment is  Mantrade/FMMC Division
undertaken, the regular holidays falling within the period Employees and Workers Union v. Bacungan, 144 SCRA 510
shall be compensated in accordance with this Rule. (1986)

(b) The regular holiday during the cessation of operation of

an enterprise due to business reverses as authorized by the
Secretary of Labor and Employment may not be paid by the
employer.

SECTION 8. Holiday pay of certain employees. — (a) Private

school teachers, including faculty members of colleges and
universities, may not be paid for the regular holidays during
semestral vacations. They shall, however, be paid for the
regular holidays during Christmas vacation;

(b) Where a covered employee, is paid by results or output,

such as payment on piece work, his holiday pay shall not be
less than his average daily earnings for the last seven (7)
actual working days preceding the regular holiday; Provided,
However, that in no case shall the holiday pay be less than
the applicable statutory minimum wage rate.

(c) Seasonal workers may not be paid the required holiday

pay during off-season when they are not at work.

(d) Workers who have no regular working days shall be

entitled to the benefits provided in this Rule.

SECTION 9. Regular holiday falling on rest days or Sundays.

— (a) A regular holiday falling on the employee's rest day
shall be compensated accordingly.

 Cirineo Bowling Plaza, Inc. v. Gerry

(b) Where a regular holiday falls on a Sunday, the following
Sensing, et al., 448 SCRA 175 (2005)
day shall be considered a special holiday for purposes of the
Labor Code, unless said day is also a regular holiday.

SECTION 10. Successive regular holidays. — Where there

are two (2) successive regular holidays, like Holy Thursday
and Good Friday, an employee may not be paid for both
holidays if he absents himself from work on the day
immediately preceding the first holiday, unless he works on
the first holiday, in which case he is entitled to his holiday
pay on the second holiday.

SECTION 11. Relation to agreements. — Nothing in this Rule

shall justify an employer in withdrawing or reducing any
benefits, supplements or payments for unworked holidays as
provided in existing individual or collective agreement or
employer practice or policy.

Duman / Labor I / Prof. Battad / Page 78

c. Holiday Pay, Art. 94 (b)

(b) The employer may require an employee to work on any

holiday but such employee shall be paid a compensation
equivalent to twice his regular rate; and

1) Faculty in Private School, Rule IV, Sec. 8 (a)

SECTION 8. Holiday pay of certain employees. — (a) Private

school teachers, including faculty members of colleges and
universities, may not be paid for the regular holidays during
semestral vacations. They shall, however, be paid for the
regular holidays during Christmas vacation;

6) Divisor as Factor

 Trans-Asia Phil. Employees Association v.

NLRC, 320 SCRA 347 (1999)
8) Muslim Holiday, Art. 169-172; PD 1083 (Feb. 1977)

BOOK FIVE
MISCELLANEOUS AND TRANSITORY PROVISIONS

TITLE I
MUSLIM HOLIDAYS

Article 169. Official Muslim holidays. The following are

hereby recognized as legal Muslim holidays:

(a) 'Amun Jadid (New Year), which falls on the

first day of the first lunar month of Muharram;

(b) Maulid-un-Nabi (Birthday of the Prophet

Muhammad), which falls on the twelfth day of the
third lunar month of Rabi-ul-Awwal;

(c) Lailatul Isra Wal Mi'raj (Nocturnal Journey and

Ascension of the Prophet Muhammad), which falls
on the twenty-seventh day of the seventh lunar
month of Rajab;

7) Sunday, Art. 93 9a), 2nd Sentence; Rule III, Sec. 2 (d) 'Id-ul-Fitr (Hari Raya Pausa), which falls on the
first day of the tenth lunar month of Shawwal,
ART. 93. Compensation for rest day, Sunday or holiday commemorating the end of the fasting season;
work. - (a) Where an employee is made or permitted to and
work on his scheduled rest day, he shall be paid an
additional compensation of at least thirty percent (30%) of
his regular wage. An employee shall be entitled to such (e) 'Id-ul-Adha (Hari Raja Haji), which falls on the
additional compensation for work performed on Sunday only tenth day of the twelfth lunar month of Dhu 1-
when it is his established rest day. Hijja.

Article 170. Provinces and cities where officially observed.

SECTION 2. Business on Sundays/Holidays. — All
establishments and enterprises may operate or open for
(1) Muslim holidays shall be officially observed in
business on Sundays and holidays provided that the
the Provinces of Basilan, Lanao del Norte, Lanao
employees are given the weekly rest day and the benefits as
del Sur, Maguindanao, North Cotabato, Sultan
provided in this Rule.
Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte
and Zamboanga del Sur, and in the Cities of
 Wellington Investment Inc. v.
Cotabato, Iligan, Marawi, Pagadian, and
Trajano, 245 SCRA 561 (1995)

Duman / Labor I / Prof. Battad / Page 79

 Zamboanga and in such other Muslim provinces e. Non-Working/Schedule of Rest Day, Rule IV,
and cities as may hereafter be created. Sec. 6 (c)

(c) Where the day immediately preceding the holiday is a

(2) Upon proclamation by the President of the
non-working day in the establishment or the scheduled rest
Philippines, Muslim holidays may also be officially
day of the employee, he shall not be deemed to be on leave
observed in other provinces and cities.
of absence on that day, in which case he shall be entitled to
the holiday pay if he worked on the day immediately
Article 171. Dates of observance. The dates of Muslim preceding the non-working day or rest day.
holidays shall be determined by the Office of the President
of the Philippines in accordance with the Muslim Lunar 4. Service Incentive Leave
Calendar (Hijra).
Reference: Art. 95; Omnibus Rules, Book III, Rule V
Article 172. Observance of Muslim employees.

(1) All Muslim government officials and employees ART. 95. Right to service incentive leave. - (a) Every
in places other than those enumerated under employee who has rendered at least one year of service
Article 170 shall also be excused from reporting to shall be entitled to a yearly service incentive leave of five
office in order that they may be able to observe days with pay.
Muslim holidays.
(b) This provision shall not apply to those who are already
(2) The President of the Philippines may, by enjoying the benefit herein provided, those enjoying
proclamation, require private offices, agencies or vacation leave with pay of at least five days and those
establishments to excuse their Muslim employees employed in establishments regularly employing less than
from reporting for work during a Muslim holiday ten employees or in establishments exempted from granting
without reduction in their usual compensation. this benefit by the Secretary of Labor and Employment after
considering the viability or financial condition of such
establishment.

(c) The grant of benefit in excess of that provided herein

 San Miguel Corp. v. Court of
shall not be made a subject of arbitration or any court or
Appeals, 375 SCRA 311 (2002)
administrative action.

a. Coverage, Art. 95 (a) (b)

 Makati Haberdashery Inc. N. NLRC,

179 SCRA 449 (1989)

d. Absences, Rule lV, Secs. 6 (a), 10

 Labor Congress v. NLRC, supra
SECTION 6. Absences. — (a) All covered employees shall be
entitled to the benefit provided herein when they are on b. Computation and Liability
leave of absence with pay. Employees who are on leave of
absence without pay on the day immediately preceding a  Sentinel Security Agency, Inc. v.
regular holiday may not be paid the required holiday pay if NLRC, 295 SCRA 123 1998)
he has not worked on such regular holiday.

SECTION 10. Successive regular holidays. — Where there

are two (2) successive regular holidays, like Holy Thursday
and Good Friday, an employee may not be paid for both
holidays if he absents himself from work on the day
immediately preceding the first holiday, unless he works on
the first holiday, in which case he is entitled to his holiday
pay on the second holiday.

Duman / Labor I / Prof. Battad / Page 80

 SECTION 5. Any person, corporation, trust, firm,
partnership, association or entity found violating this
Act or the rules and regulations promulgated
thereunder shall be punished by a fine not exceeding
Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more
than six (6) months.

If the violation is committed by a corporation, trust

or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed on the
entity's responsible officers, including, but not limited
to, the president, vice-president, chief executive
officer, general manager, managing director or
partner directly responsible therefor.

 Auto Bus Transport Systems, Inc. SECTION 6. Nondiminution Clause. - Nothing in

v. Bautista, supra this Act shall be construed to reduce any existing
benefits of any form granted under existing laws,
5. Paternity Leave, Paternity Leave of 1996 (RA
decrees, executive orders, or any
8187), Secs. 1-6; Impl. Rules
contract agreement or policy between employer and
REPUBLIC ACT NO. 8187 employee.

AN ACT GRANTING PATERNITY LEAVE OF SECTION 7. Repealing Clause. - All laws,

SEVEN (7) DAYS WITH FULL PAY TO ALL ordinances, rules, regulations, issuances, or parts
MARRIED MALE EMPLOYEES IN THE PRIVATE thereof which are inconsistent with this Act are
AND PUBLIC SECTORS FOR THE FIRST FOUR (4) hereby repealed or modified accordingly.
DELIVERIES OF THE LEGITIMATE SPOUSE WITH
WHOM HE IS COHABITING AND FOR OTHER SECTION 8. Effectivity. - This Act shall take effect
PURPOSES. (15) days from its publication in the Official Gazette
or in at least two (2) newspapers of national
circulation.
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled: Approved:

SECTION 1. Short Title. - This Act shall be known

as the "Paternity Leave Act of 1996". (SGD.) NEPTALI A. GONZALES
President of the Senate
SECTION 2. Notwithstanding any law, rules and
regulations to the contrary, every married male
employee in the private and public sectors shall be
entitled to a paternity leave of seven (7) days with full (SGD.) JOSE DE VENECIA, JR.
pay for the first four (4) deliveries of the legitimate Speaker of the House of Representatives
spouse with whom he is cohabiting. The male
employee applying for paternity leave shall notify his
employer of the pregnancy of his legitimate spouse
and the expected date of such delivery. This Act, which is a consolidation of Senate Bill
No. 1032 and House Bill No. 7134 was finally passed
For purposes, of this Act, delivery shall include by the Senate and the House of Representatives on
childbirth or any miscarriage. June 8, 1996.
SECTION 3. Definition of Term. - For purposes of
this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not
to report for work for seven (7) 1. Parental Leave, Solo Parents’ Welfare Act of 2000
days but continues to earn the compensation therefor, (RA 8972); Impl. Rules
on the condition that his spouse has delivered a child
or suffered a miscarriage for purposes of enabling
him to effectively lend REPUBLIC ACT NO. 8972
support to his wife in her period of recovery and/or in
the nursing of the newly-born child.
AN ACT PROVIDING FOR BENEFITS AND
SECTION 4. The Secretary of Labor and PRIVILEGES TO SOLO PARENTS AND THEIR
Employment, the Chairman of the Civil Service CHILDREN, APPROPRIATING FUNDS THEREFOR
Commission and the Secretary of Health shall, within AND FOR OTHER PURPOSES
thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary Be it enacted by the Senate and House of
for the proper implementation of the provisions Representatives of the Philippines Congress
hereof. assembled:
Duman / Labor I / Prof. Battad / Page 81
Section 1. Title. - This Act shall be known as the abandonment of spouse for at least
"Solo Parents' Welfare Act of 2000." one (1) year;

Section 2. Declaration of Policy. - It is the policy of (8) Unmarried mother/father who

the State to promote the family as the foundation of has preferred to keep and rear
the nation, strengthen its solidarity and ensure its total her/his child/children instead of
development. Towards this end, it shall develop a having others care for them or give
comprehensive program of services for solo parents them up to a welfare institution;
and their children to be carried out by the Department
of Social Welfare and Development (DSWD), the (9) Any other person who solely
Department of Health (DOH), the Department of provides parental care and support
Education, Culture and Sports (DECS), the to a child or children;
Department of the Interior and Local Government
(DILG), the Commission on Higher Education
(CHED), the Technical Education and Skills (10) Any family member who
Development Authority (TESDA), the National assumes the responsibility of head
Housing Authority (NHA), the Department of Labor of family as a result of the death,
and Employment (DOLE) and other related abandonment, disappearance or
government and nongovernment agencies. prolonged absence of the parents
or solo parent.
Section 3. Definition of Terms. - Whenever used in
this Act, the following terms shall mean as follows: A change in the status or
circumstance of the parent claiming
benefits under this Act, such that
(a) "Solo parent" - any individual who falls he/she is no longer left alone with
under any of the following categories: the responsibility of parenthood,
shall terminate his/her eligibility for
(1) A woman who gives birth as a these benefits.
result of rape and other crimes
against chastity even without a final (b) "Children" - refer to those living with and
conviction of the offender: Provided, dependent upon the solo parent for support
That the mother keeps and raises who are unmarried, unemployed and not
the child; more than eighteen (18) years of age, or
even over eighteen (18) years but are
(2) Parent left solo or alone with the incapable of self-support because of mental
responsibility of parenthood due to and/or physical defect/disability.
death of spouse;
(c) "Parental responsibility" - with respect to
(3) Parent left solo or alone with the their minor children shall refer to the rights
responsibility of parenthood while and duties of the parents as defined in Article
the spouse is detained or is serving 220 of Executive Order No. 209, as
sentence for a criminal conviction amended, otherwise known as the "Family
for at least one (1) year; Code of the Philippines."

(4) Parent left solo or alone with the (d) "Parental leave" - shall mean leave
responsibility of parenthood due to benefits granted to a solo parent to enable
physical and/or mental incapacity of him/her to perform parental duties and
spouse as certified by a public responsibilities where physical presence is
medical practitioner; required.

(5) Parent left solo or alone with the (e) "Flexible work schedule" - is the right
responsibility of parenthood due to granted to a solo parent employee to vary
legal separation or de facto his/her arrival and departure time without
separation from spouse for at least affecting the core work hours as defined by
one (1) year, as long as he/she is the employer.
entrusted with the custody of the
children; Section 4. Criteria for Support. - Any solo parent
whose income in the place of domicile falls below the
(6) Parent left solo or alone with the poverty threshold as set by the National Economic
responsibility of parenthood due to and Development Authority (NEDA) and subject to the
declaration of nullity or annulment assessment of the DSWD worker in the area shall be
of marriage as decreed by a court eligible for assistance: Provided, however, That any
or by a church as long as he/she is solo parent whose income is above the poverty
entrusted with the custody of the threshold shall enjoy the benefits mentioned in
children; Sections 6, 7 and 8 of this Act.

(7) Parent left solo or alone with the Section 5. Comprehensive Package of Social
responsibility of parenthood due to Development and Welfare Services. - A
comprehensive package of social development and
Duman / Labor I / Prof. Battad / Page 82
welfare services for solo parents and their families will basic, tertiary and technical/skills education;
be developed by the DSWD, DOH, DECS, CHED, and
TESDA, DOLE, NHA and DILG, in coordination with
local government units and a nongovernmental (2) Nonformal education programs
organization with proven track record in providing appropriate for solo parents and their
services for solo parents. children.

The DSWD shall coordinate with concerned agencies The DECS, CHED and TESDA shall promulgate rules
the implementation of the comprehensive package of and regulations for the proper implementation of this
social development and welfare services for solo program.
parents and their families. The package will initially
include:
Section 10. Housing Benefits. - Solo parents shall be
given allocation in housing projects and shall be
(a) Livelihood development services which provided with liberal terms of payment on said
include trainings on livelihood skills, basic government low-cost housing projects in accordance
business management, value orientation and with housing law provisions prioritizing applicants
the provision of seed capital or job below the poverty line as declared by the NEDA.
placement.
Section 11. Medical Assistance. - The DOH shall
(b) Counseling services which include develop a comprehensive health care program for
individual, peer group or family counseling. solo parents and their children. The program shall be
This will focus on the resolution of personal implemented by the DOH through their retained
relationship and role conflicts. hospitals and medical centers and the local
government units (LGUs) through their
(c) Parent effectiveness services which provincial/district/city/municipal hospitals and rural
include the provision and expansion of health units (RHUs).
knowledge and skills of the solo parent on
early childhood development, behavior Section 12. Additional Powers and Functions of the
management, health care, rights and duties DSWD. � The DSWD shall perform the following
of parents and children. additional powers and functions relative to the welfare
of solo parents and their families:
(d) Critical incidence stress debriefing which
includes preventive stress management (a) Conduct research necessary to: (1)
strategy designed to assist solo parents in develop a new body of knowledge on solo
coping with crisis situations and cases of parents; (2) define executive and legislative
abuse. measures needed to promote and protect
the interest of solo parents and their
(e) Special projects for individuals in need of children; and (3) assess the effectiveness of
protection which include temporary shelter, programs designed for disadvantaged solo
counseling, legal assistance, medical care, parents and their children;
self-concept or ego-building, crisis
management and spiritual enrichment. (b) Coordinate the activities of various
governmental and nongovernmental
Section 6. Flexible Work Schedule. - The employer organizations engaged in promoting and
shall provide for a flexible working schedule for solo protecting the interests of solo parents and
parents: Provided, That the same shall not affect their children; and
individual and company productivity: Provided,
further, That any employer may request exemption (c) Monitor the implementation of the
from the above requirements from the DOLE on provisions of this Act and suggest
certain meritorious grounds. mechanisms by which such provisions are
effectively implemented.
Section 7. Work Discrimination. - No employer shall
discriminate against any solo parent employee with Section 13. Implementing Rules and Regulations. -
respect to terms and conditions of employment on An interagency committee headed by the DSWD, in
account of his/her status. coordination with the DOH, DECS, CHED, TESDA,
DOLE, NHA, and DILG is hereby established which
Section 8. Parental Leave. - In addition to leave shall formulate, within ninety (90) days upon the
privileges under existing laws, parental leave of not effectivity of this Act, the implementing rules and
more than seven (7) working days every year shall be regulations in consultation with the local government
granted to any solo parent employee who has units, nongovernment organizations and people's
rendered service of at least one (1) year. organizations.

Section 9. Educational Benefits. - The DECS, CHED Section 14. Appropriations. - The amount necessary
and TESDA shall provide the following benefits and to carry out the provisions of this Act shall be included
privileges: in the budget of concerned government agencies in
the General Appropriations Act of the year following
(1) Scholarship programs for qualified solo its enactment into law and thereafter.1awphil.net
parents and their children in institutions of
Duman / Labor I / Prof. Battad / Page 83
Section 15. Repealing Clause. - All laws, decrees, RULES AND REGULATIONS IN THE
executive orders, administrative orders or parts IMPLEMENTATION OF REPUBLIC ACT NO. 8972,
thereof inconsistent with the provisions of this Act are AN ACT PROVIDING FOR BENEFITS AND
hereby repealed, amended or modified accordingly. PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR
Section 16. Separability Clause. - If any provision of AND FOR OTHER PURPOSES
this Act is held invalid or unconstitutional, other ARTICLE I
provisions not affected thereby shall continue to be in TITLE, PURPOSE AND CONSTRUCTION
full force and effect. Section 1. Title – These rules shall be known and
cited as the Rules and Regulations Implementing
Republic Act No. 8972, more commonly known as the
Section 17. Effectivity Clause. - This Act shall take Solo Parents’ Welfare Act of 2000.
effect fifteen (15) days following its complete Section 2. Purpose – These Rules are promulgated to
publication in the Official Gazette or in at least two (2) prescribe the procedure and guidelines for the
newspaper of general circulation. implementation of the Solo Parents’ Welfare Act of
2000 in order to facilitate the compliance therewith
Approved. and to achieve the objectives thereof.
Section 3. Construction – These Rules shall be
(Sgd.) liberally construed in favor of the solo parent and
applied in accordance with and in furtherance of the
policy and objectives of the law. In case of conflict
JOSEPH EJERCITO ESTRADA and/or ambiguity, which may arise in the
President of the Philippines implementation of these Rules, the concerned
agencies shall issue the necessary clarification.
Republic of the Philippines ARTICLE II
National Economic Development Authority DECLARATION OF POLICIES AND OBJECTIVES
SOCIAL DEVELOPMENT COMMITTEE (SDC) Section 4. Declaration of Policy – It is the policy of the
Resolution No.2 (Series 2002) State to promote the family as the foundation of the
APPROVING THE IMPLEMENTING RULES AND nation, strengthen its solidarity and ensure its total
REGULATIONS (IRR) development. Towards this end, it shall develop a
OF REPUBLIC ACT 8972 PROVIDING FOR comprehensive program of services for solo parents
BENEFITS AND PRIVILEGES and their children to be carried out by the Department
TO SOLO PARENTS AND THEIR CHILDREN of Social Welfare and Development (DSWD), the
WHEREAS, it is the policy of the State to promote the Department of Health (DOH), the Department of
family as the foundation of the nation, strengthen its Education (DepEd), the Department of the Interior
solidarity and ensure its total development; and Local Government (DILG), the Commission on
WHEREAS, in support of this State policy, R.A. 8972, Higher Education (CHED), the Technical Education
otherwise known as the Solo Parents’ Welfare Act of and Skills Development Authority (TESDA), the
2000, has been enacted to develop a comprehensive National Housing Authority (NHA), the Department of
program for social development and welfare services Labor and Employment (DOLE) and other related
for solo parents and their children; government agencies and non-government
WHEREAS, to ensure the implementation of the Act, organizations or civil society.
the Department of Social Welfare and Development Section 5. Objective – These Rules and Regulations
was tasked to coordinate with concerned agencies seek to clarify the scope and application of the Act in
and perform additional functions relative to the order that the proper parties may avail of its benefits.
welfare and development of solo parents and their ARTICLE III
children; DEFINITION OF TERMS
WHEREAS, an interagency committee headed by Section 6. Definition of terms – As used in these
DSWD and participated in by the Departments of Rules, the following terms shall mean as follows:
Health (DOH), Education (DepEd), Labor and
Employment (DOLE), and Interior and Local (a) “Act” – the Solo Parents’ Welfare Act of
Government (DILG), Commission on Higher 2000;
Education (CHED), Technical Education and Skills
Development Authority (TESDA), and National (b) “Solo Parent” – any individual who falls
Housing Authority (NHA) drafted the IRR in under any of the following categories:
consultation with the local government units, non-
government organizations and people’s organizations; (1) A woman who gives birth as a
WHEREAS, the draft IRR was deliberated upon and result of rape or crimes against chastity,
approved by the members of the SDC-Cabinet level even without a final conviction of the
subject to the incorporation of certain comments offender: Provided, that the mother keeps
during its meeting on the 10th day of April 2002; and raises the child;
NOW, THEREFORE, BE IT RESOLVED, AS IT IS
HEREBY RESOLVED, by the Chairman and (2) Parent left solo or alone with the
members of the NEDA Board’s Social Development responsibility of parenthood due to death of
Committee-Cabinet level, to approve the IRR of R.A. spouse;
8972.
RESOLVED FURTHER, that this IRR shall be (3) Parent left solo or alone with the
published at least in one newspaper of general responsibility of parenthood while the spouse
circulation. is detained, or is serving sentence for a
Adopted, this 10 day of April in the year of our Lord, criminal conviction for at least one (1) year;
Two Thousand and Two, Pasig City.

Duman / Labor I / Prof. Battad / Page 84

The law applies to the spouses of prisoners, whether above but are incapable of self-support and/or
or not a final judgement has been rendered, provided mentally and/or physically challenged;
they are in detention for a minimum period of one (1)
year; (f) “Parental responsibility” – with respect to
their minor children shall refer to the rights and duties
(4) Parent left solo or alone with the of the parents as defined in Article 220 of Executive
responsibility of parenthood due to physical Order No. 209, as amended, otherwise known as the
and/or mental incapacity of spouse as “Family Code of the Philippines,” and hereunder
certified by a public medical practitioner; enumerated as follows:

(5) Parent left solo or alone with the (1) To keep them in their company,
responsibility of parenthood due to legal to support, educate and instruct them by
separation or de facto separation from right precept and good example and to
spouse for at least one (1) year: Provided, provide for their upbringing in keeping with
that he or she is entrusted with the custody their means;
of the children;
(2) To give them love and affection,
(6) Parent left solo or alone with the advice and counsel, companionship and
responsibility of parenthood due to understanding;
declaration of nullity or annulment of
marrriage as decreed by a court or by a (3) To provide them with moral and
church: Provided, that he/she is entrusted spiritual guidance, inculcate in them honesty,
with the custody of the children; integrity, self-discipline, self-reliance,
industry and thrift, stimulate their interest in
(7) Parent left solo or alone with the civic affairs, and inspire in them compliance
responsibility of parenthood due to with the duties of citizenship;
abandonment of spouse for at least one (1)
year; (4) To furnish them with good and
wholesome educational materials, supervise
(8) Unmarried mother/father who their activities, recreation and association
has preferred to keep and rear his/her with others, protect them from bad company,
child/children instead of having others care and prevent them from acquiring habits
for them or give them up to a welfare detrimental to their health, studies and
institution; morals;

(9) Any other person who solely (5) To represent them in all matters
provides parental care and support to a child affecting their interest;
or children provided he/she is duly licensed
as a foster parent by the DSWD or duly (6) To demand from them respect
appointed legal guardian by the court; and obedience;

(10) Any family member who (7) To Impose discipline on them as

assumes the responsibility of head of family may be required under the circumstances;
as a result of the death, abandonment, and
disappearance, or absence lasts for at least
one (1) year. (8) To perform such other duties as
are imposed by law and upon parents and
A change in the status or circumstance of the parent guardians;
claiming benefits under the Act, such that he/she is no
longer left alone with the responsibility of parenthood, (g) “Parental leave” – shall mean leave
shall terminate his/her eligibility for these benefits; benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where
(c) “Family” – shall refer to the Solo Parent physical presence is required;
and his/her child/children; Provided, however, that the
family member referred to in Section 3, paragraph (a) (h) “Flexible work schedule” – is the right
(10) of these Rules shall include any relative by granted to a solo parent employee to vary his/her
consanguinity up to the fourth civil degree. These arrival and departure time without affecting the core
persons shall include, but are not limited to, any work hours as defined by the employer;
uncle, aunt, grandfather, grandmother, niece, nephew,
or cousin; (i) “DSWD” – shall refer to the Department of
Social Welfare and Development;
(d) “Social Worker” – a person who is a
graduate of Social Work and duly registered pursuant (j) “DOH” – shall refer to the Department of
to Republic Act 4373 and employed with the Social Health;
Welfare and Development Office of the local (k) “DOLE” – shall refer to the Department of
government unit where the solo parent resides; Labor and Employment;

(e) “Children” – refer to those living with and (l) “DepEd” – shall refer to the Department of
dependent upon the solo parent for support who are Education;
unmarried, unemployed and below eighteen (18)
years of age, or even eighteen (18) years and (m) “DILG” – shall refer to the Department of
the Interior and Local Government;
Duman / Labor I / Prof. Battad / Page 85
 (n) “CHED” – shall refer to the Commission
on Higher Education;

(o) “NHA” – shall refer to the National

Housing Authority;

(p) “TESDA” – shall refer to the Technical

Education and Skills Development Authority;

(q) “NEDA” – shall refer to the National

Economic and Development Authority;

(r) “NSCB” – shall refer to the National

Statistical Coordination Board, an attached agency of
NEDA and responsible for determining the regional
poverty threshold.

ARTICLE IV
CRITERIA FOR SUPPORT
Section 7. Criteria for Support – Any solo parent
whose income in the place of domicile falls equal to
or below the poverty threshold as set by the NSCB
and subject to the assessment of the duly appointed
or designated social worker in the area shall be
eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in
Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of
domicile shall refer to the residence mentioned in
Section 8(a) of these Rules.
Section 8. Qualifications of Solo Parent – A solo
parent seeking benefits other than those provided for
under Sections 16, 17, 18, 19, 20, 21 and 23 of these
Rules shall be qualified on the basis of the following:

(a) A resident of the area where the

assistance is sought, as certified by
the barangay captain; Provided, that
if the solo parent is a transferee from
another barangay, he/she is required
to secure a clearance from his/her
previous barangay, indicating
whether or not he/she has availed of
any benefits for solo parents, and
the nature of such benefits.

(b) With an income level equal to or below

the poverty threshold as set forth by
NSCB and assessed by a social worker
as provided for under Section 7 of
these Rules.

Duman / Labor I / Prof. Battad / Page 86

Section 9. Assessment –an applicant who manifests agency concerned providing the
the need for assistance under the Act is subject to appropriate assistance/service.
assessment by a social worker at the city/municipal
Social Welfare and Development Office. The (f) The social worker shall inform the solo
assessment shall cover, but not be limited to, the parent of the status of his/her
following: application within thirty (30) working
days from the filing of such and shall
(a) Determination of the applicant’s category require him/her to visit the
as enumerated in Article III Section 6 agency/institution providing the
paragraph (b) of these Rules; assistance. In case the applicant is not
qualified for services under this Act,
(b) Evaluation of the needs of the applicant he/she will be referred to the
and his/her children as basis for appropriate agency/program for
provision of the appropriate service and assistance.
intervention;
(g) Upon the favorable evaluation of the
(c) Identification of the level of readiness of social worker, a Solo Parent
the applicant to receive a particular Identification Card shall be issued on
service/assistance, which shall serve as the solo parent within 30 days upon
basis for the conduct of social application duly signed by the
preparation activities prior to the city/municipal Social Welfare Officer
provision of such service/assistance; and the city/municipal mayor. The Solo
and Parent Identification Card is necessary
for the availment of benefits under the
(d) Identification of existing and potentially Act and these Rules. Such Identification
available resources that may support Card shall be valid for only one (1) year,
the applicant and his/her children. but may be renewed subject to a new
assessment and evaluation;
Section 10. Procedure in Accessing Services for Solo
Parents - A person who needs assistance under this (h) For the public’s information and
Act shall comply with the following process; guidance, a list of persons who applied
and those who were able to avail of the
(a) Visit the Social Welfare and Development benefits under this Act shall be made
Office of the city or municipality of available by the concerned
her/his residence to manifest her/his city/municipal social welfare and
need for assistance; development office which processed
their applications.
(b) Fill up application form for the assistance,
indicating but not limited to, the Section 11. Procedure for Application of Benefits – An
following information: applicant who was determined by a social worker to
be eligible for assistance may apply for benefits under
1. Name this Act through the following;

2. Age (a) The solo parent may go to the agency

providing such benefit bringing with
3. Address/Area of Domicile her/him the Identification Card issued
by the Municipal/City Social Welfare
4. Income per month and Development Office;

5. Source/s of income (b) Undergo the necessary qualifying

activities required by the agency as
6. Number of children prescribed by these Rules; and

7. Circumstances of being solo; (c) Comply with the requirements set forth by
the agency providing the service for the
(c) Undergo the necessary assessment duration of the assistance (e.g.
process as stipulated in Section 9 schooling, housing) subject to existing
Article IV of these Rules; rules of the agencies concerned.

(d) A Social Case Study Report shall be Section 12. Procedure for Termination of Benefits
prepared by the social worker based on
the information/data provided for by the (a) A solo parent shall manifest to the Social
applicant, as well as his/her Welfare Office his/her intention to
assessment of said applicant, indicating withdraw the availment of the benefits
therein the appropriate services under this Act.
needed.
(b) If the solo parent does not voluntarily
(e) The Social Case Study Report, together manifest his/her intention to terminate
with a referral letter prepared by the the provision of benefits and services
social worker, shall be forwarded by the before the lapse of one year from the
Office of the City/Municipal Social issuance of the Solo Parent I.D., the
Welfare and Development Office to the Social Worker, based on a report by the
Duman / Labor I / Prof. Battad / Page 87
 employer or any interested person shall benefits of this item shall be provided for by the DOLE
conduct the necessary and TESDA; the provision of seed capital shall be
assessment/evaluation to ascertain if guided by the credit policy of the National Credit
grounds for termination and withdrawal Council as contained in E.O. No. 138, “Rationalization
of benefits exist. The Identification Card of Government Directed Credit Program”, passed in
shall cease to be effective upon the 1999.
lapse of one year from issuance, unless
renewed based on a new assessment (b) Counseling services, which include
and evaluation. Failure to renew will individual, peer group or family
mean that he/she has changed counseling. These will focus on the
his/her status as a solo parent. resolution of personal relationship and
role conflicts.
(c) The solo parent shall be informed of the
result of the assessment/evaluation and The criteria and procedure for evaluation of
termination of the service, if warranted, beneficiaries for the purposes of availing of the
through written notice. The termination benefits of this item shall be provided for by the
shall take effect 30 days from the DSWD;
receipt of the notice of termination. In
cases when the service cannot be (c) Parent effectiveness services which
terminated in a period of one month, include the provision and expansion of
e.g. schooling, the service shall be knowledge and skills of the solo parent
completed until its due time. on early childhood development,
behavior management, health care and
The NHA and other participating housing agencies proper nutrition, rights and duties of
shall issue the guidelines in the termination of housing parents and children;
benefits provided in sections 23 and 24 of these
Rules. (d) Critical incidence stress debriefing, which
(d) The solo parent and his/her children shall includes preventive stress management
undergo psychosocial counseling with strategy designed to assist solo parents
the social worker to prepare them for in coping with crisis situations and
independent living. cases of abuse;

Section 13. Relocation of the Family – In the event a (e) Special projects for individuals in need of
solo parent decides to relocate his/her family, he/she protection which include temporary
shall inform the city/municipal Social Welfare and shelter, counseling, legal assistance,
Development Office. Said office shall thereupon medical care, self-concept or ego-
transmit the records to the city/municipal Social building, crisis management and
Welfare and Development Office of the place of spiritual enrichment.
relocation.
Section 14. Duty to Monitor – It shall be the duty of Section 16. Flexible Work Schedule – The employer
the city/municipal Social Welfare Officer who receives shall provide for a flexible work schedule for solo
said records, to assign a social worker to monitor the parents: Provided, That the same shall not affect
status of the relocated solo parent and his/her family. individual and company productivity: Provided further,
Moreover, it shall also be the duty of said officer to That any employer may request exemption from the
coordinate with the concerned agencies of any above requirements from the DOLE on certain
changes in the status of the solo parent receiving meritorious grounds.
benefits from said agencies. In the case of employees in the government service,
ARTICLE V flexible working hours will be subject to the discretion
BENEFITS of the head of the agency. In no case shall the weekly
Section 15. Comprehensive Package of Social working hours be reduced in the event the agency
Development and Welfare Services – A adopts the flexible working hours schedule format
comprehensive package of social development and (flexi-time). In the adoption of flexi-time, the core
welfare services for solo parents and their families will working hours shall be prescribed taking into
be developed by the DSWD, DOH, DepEd, CHED, consideration the needs of the service..
TESDA, DOLE, NHA and DILG, in coordination with Section 17. Work Discrimination – No
local government units and non-governmental employer shall discriminate against any solo parent
organizations with proven track record in providing employee with respect to terms and conditions of
services for solo parents. employment on account of his/her status.
The DSWD shall coordinate with concerned agencies Section 18. Parental Leave – In addition to leave
the implementation of the comprehensive package of privileges under existing laws, parental leave of not
social development and welfare services for solo more than seven (7) working days every year shall be
parents and their families. The package will initially granted to any solo parent employee who has
include: rendered service of at least one (1) year. The seven-
day parental leave shall be non-cumulative.
(a) Livelihood development services, which Section 19. Conditions for Entitlement of Parental
include training on livelihood skills, Leave – A solo parent shall be entitled to parental
basic business management, value leave provided that:
orientation and the provision of seed
capital or job placement. (a) He/She has rendered at least one (1)
year of service whether continuous or
The criteria and procedure for evaluation of broken at the time of the affectivity of
beneficiaries for the purposes of availing of the the Act;
Duman / Labor I / Prof. Battad / Page 88
 regulations of participating housing agencies shall be
(b) He/She has notified his/her employer of provided with liberal terms of payment on government
the availment thereof within a low-cost housing projects, in accordance with housing
reasonable time period; and law provisions, prioritizing applicants below the
poverty line as declared by the NSCB.
(c) He/She has presented a Solo Parent Section24. The NHA shall make available housing
Identification Card to his/her employer. units to solo parents in its housing projects subject to
existing disposition policies or may refer them to other
Section 20. Non-conversion of Parental Leave – In housing projects, as appropriate, provided that:
the event that the parental leave is not availed of, said
leave shall not be convertible to cash unless (a) The identified solo parent must be eligible
specifically agreed upon previously. However, if said for assistance under the provisions of
leave were denied an employee as a result of non- this Act;
compliance with the provisions of these Rules by an
employer, the aforementioned leave may be used a (b) Solo parents applying for housing
basis for the computation of damages. benefits must meet the qualification
Section 21. Crediting of Existing Leave – If there is an criteria for housing assistance under
existing or similar benefit under a company policy, or Republic Act 7279, or the Urban
a collective bargaining agreement or collective Development and Housing Act
negotiation agreement the same shall be credited as (UDHA) and other NHA eligibility
such. If the same is greater than the seven (7) days criteria under existing policies, rules
provided for in the Act, the greater benefit shall and regulations; and
prevail.
Emergency or contingency leave provided under a (c) Eligible solo parents shall file their
company policy or a collective bargaining agreement application for housing unit directly
shall not be credited as compliance with the parental with the concerned NHA Project
leave provided for under the Act and these Rules. Offices.

Section 22. Educational Benefits – The DepEd, CHED Upon written request, the NHA shall provide the
and TESDA shall provide the following benefits and DSWD a listing of NHA projects with available
privileges: housing units for disposition. This list shall be updated
and provided semi-annually.
(a) Scholarship programs for qualified solo Section 25. Medical Assistance – The DOH shall
parents and their children in develop a comprehensive health care program for
institutions of basic, tertiary and solo parents and their children. The program shall be
technical/skills education; implemented by the DOH through their retained
hospitals and medical centers and the local
(b) Non-formal education programs government units (LGUs) through their
appropriate for solo parents and their provincial/district/city/municipal hospitals and rural
children. health units (RHUs).
Section 26. Essential Health Packages – To ensure
Application Procedure: the state of well-being of the solo parent and his/her
family, healthy/medical services shall be made
1. Applicant must secure application form available at all times, in all levels of health care
from either DepEd, CHED and TESDA delivery system as mentioned in the previous section.
depending on their need; These health/medical services shall be part of the
regular essential health packages being provided at
2. Submit the duly accomplished application various stages of life.
form together with the required
documents to the appropriate agency. ARTICLE VI
ADDITIONAL POWERS AND FUNCTIONS OF THE
The following are the documents required to be DSWD
attached with the application: Section 27. Additional Powers and Functions of the
DSWD – The DSWD shall perform the following
1. Solo Parent Identification Card additional powers and functions relative to the welfare
and development of solo parents and their families:
2. Barangay Clearance
(a) Conduct research necessary to:
3. Birth Certificate
(1) develop a new body of knowledge
4. Notice of admission from the on solo parents;
school
(2) Define executive and legislative
5. Original or Certified True Copy of measures needed to promote and
the transcript of record, or the protect the interest of solo parents
Report Care of the last year the and their children; and
applicant attended school.
(3) Assess the effectiveness of policies
Section 23. Housing Benefits – Solo parents who and programs designed for solo
meet the eligibility criteria for housing assistance parents and their children;
under R.A. No. 7279 (Urban Development and
Housing Act of 1992) and other related rules and
Duman / Labor I / Prof. Battad / Page 89
 The commissioning or contracting out for the conduct RULE VI
of said research shall be inherent in the performance Service Charges
of herein function;
SECTION 1. Coverage. — This rule shall apply only to
(b) Coordinate the activities of various establishments collecting service charges such as hotels,
government agencies, LGUs, and non- restaurants, lodging houses, night clubs, cocktail lounge,
government organizations engaged in massage clinics, bars, casinos and gambling houses, and
promoting and protecting the interests similar enterprises, including those entities operating
of solo parents and their children; primarily as private subsidiaries of the Government.

(c) Coordinate the dissemination of SECTION 2. Employees covered. — This rule shall apply to
information concerning the benefits of all employees of covered employers, regardless of their
the Act and these Rules, as well as positions, designations or employment status, and
other advocacy activities; and irrespective of the method by which their wages are paid
except to managerial employees.
(d) Monitor the implementation of the
provisions of this Act and suggest As used herein, a "managerial employee" shall mean one
mechanisms by which such provisions who is vested with powers or prerogatives to lay down and
are efficiently and effectively execute management policies and/or to hire, transfer,
implemented. suspend, lay-off, recall, discharge, assign, or discipline
employees or to effectively recommend such managerial
Section 28. Review Committee – A special review actions. All employees not falling within this definition shall
committee comprised of members from the DSWD, be considered rank-and-file employees.
DOH, DepEd, DILG, CHED, TESDA, NHA, DOLE
and other related government agencies and non- SECTION 3. Distribution of service charges. — All service
government organizations or civil society involved in charges collected by covered employers shall be distributed
the implementation of the provisions of the Act shall at the rate of 85% for the employees and 15% for the
be created and headed by the DSWD for the purpose management. The 85% shall be distributed equally among
of evaluating the efficacy and relevancy of the the covered employees. The 15% shall be for the disposition
provisions of the Act to the present situation. by management to answer for losses and breakages and
distribution to managerial employees at the discretion of the
The duties and responsibilities of the members of this
management in the latter case.
Review Committee shall be considered as part of their
regular functions.
SECTION 4. Frequency of distribution. — The shares
ARTICLE VII referred to herein shall be distributed and paid to the
FINAL PROVISIONS employees not less than once every two (2) weeks or twice
Section 29. Appropriations – The amount necessary a month at intervals not exceeding sixteen (16) days.
to carry out the provisions of the Act shall be included
in the budget of concerned government agencies in SECTION 5. Integration of service charges. — In case the
the General Appropriations Act of the year following service charges is abolished the share of covered employees
its enactment into law and thereafter. shall be considered integrated in their wages. The basis of
Section 30. Repealing Clause – All laws, decrees, the amount to be integrated shall be the average monthly
executive orders, administrative orders or parts share of each employee for the past twelve (12) months
immediately preceding the abolition of withdrawal of such
thereof inconsistent with the provisions of the Act are
charges.
hereby repealed, amended or modified accordingly.
Section 31. Separability Clause – If any provision of
the Act is held invalid or unconstitutional, other SECTION 6. Relation to agreements. — Nothing in this Rule
provisions not affected thereby shall continue to be in shall prevent the employer and his employees from entering
full force and effect. into any agreement with terms more favorable to the
employees than those provided herein, or be used to
Section 32. Effectivity Clause – These Implementing
diminish any benefit granted to the employees under
Rules and Regulations shall take effect fifteen (15)
existing laws, agreement and voluntary employer practice.
days following its publication in one (1) national
newspaper of general circulation.
SECTION 7. This rule shall be without prejudice to existing,
future collective bargaining agreements.
7. Service Charges
Nothing in this rule shall be construed to justify the
Reference: Art. 96; Omnibus Rules, Book III, Rule VI reduction or diminution of any benefit being enjoyed by any
employee at the time of effectivity of this rule.

ART. 96. Service charges. - All service charges collected by a. Covered Employees, Art. 96
hotels, restaurants and similar establishments shall be
distributed at the rate of eighty-five percent (85%) for all b. Sharing, Art. 96
covered employees and fifteen percent (15%) for
management. The share of the employees shall be equally
distributed among them. In case the service charge is
abolished, the share of the covered employees shall be
considered integrated in their wages.

Duman / Labor I / Prof. Battad / Page 90

G. Minimum Wages and Wage Fixing Machinery g) "Service Establishment" is one primarily engaged in the
sale of service to individuals for their own or household use
Reference: Art. 96; Omnibus Rules, Book III, Rules VII-VIII and is generally recognized as such;

ART. 99. Regional minimum wages. - The minimum wage

h) "Cottage/Handicraft Establishment" is one engaged in an
rates for agricultural and non-agricultural employees and
economic endeavor in which the products are primarily done
workers in each and every region of the country shall be
in the home or such other places for profit which requires
those prescribed by the Regional Tripartite Wages and
manual dexterity and craftsmanship and whose capitalization
Productivity Boards. (As amended by Section 3, Republic Act
does not exceed P500,000, regardless of previous
No. 6727, June 9, 1989).
registration with the defunct NACIDA;
Art XIII, Section 3. The State shall afford full protection to
labor, local and overseas, organized and unorganized, and i) "National Capital Region" covers the cities of Kalookan,
promote full employment and equality of employment Manila, Pasay and Quezon and the municipalities of Las
opportunities for all. Piñas, Makati, Malabon, Mandaluyong, Marikina, Muntinlupa,
Navotas, Parañaque, Pasig, Pateros, San Juan, Taguig and
Valenzuela;
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in j) "Region III" covers the provinces of Bataan, Bulacan,
accordance with law. They shall be entitled to security of Nueva Ecija, Pampanga, Tarlac, and Zambales and the cities
tenure, humane conditions of work, and a living wage. They of Angeles, Cabanatuan, Olongapo, Palayan and San Jose;
shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by k) "Region IV" covers the provinces of Aurora, Batangas,
law. Cavite, Laguna, Marinduque, Occidental Mindoro, Palawan,
Quezon, Rizal and Romblon and the cities of Batangas,
The State shall promote the principle of shared responsibility Cavite, Lipa, Lucena, Puerto Princesa, San Pablo, Tagaytay
between workers and employers and the preferential use of and Trece Martires;
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster l) "Department" refers to the Department of Labor and
industrial peace. Employment;

The State shall regulate the relations between workers and m) "Secretary" means the Secretary of Labor and
employers, recognizing the right of labor to its just share in Employment;
the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
growth. n) "Basic Wage" means all remuneration or earnings paid by
an employer to a worker for services rendered on normal
working days and hours but does not include cost-of-living
allowances, profit sharing payments, premium payments,
RULE VII 13th month pay or other monetary benefits which are not
Wages considered as part of or integrated into the regular salary of
the workers on the date the Act became effective."
SECTION 1. Definition of Terms. As used in this Rules —
o) "Statutory Minimum Wage" is the lowest wage fixed by
a) "Act" means Republic Act No. 6727; law that an employer can pay his workers;

b) "Commission" means the National Wages and Productivity p) "Wage Distortion" means a situation where an increase in
Commission; prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an
c) "Board" means the Regional Tripartite Wages and
establishment as to effectively obliterate the distinctions
Productivity Board;
embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation;
d) "Agriculture" refers to all farming activities in all its
branches and includes among others, the cultivation and
q) "Capitalization" means paid-up capital, in the case of a
tillage of the soil, production, cultivation, growing and
corporation, and total invested capital, in the case of a
harvesting of any agricultural or horticultural commodities,
partnership or single proprietorship.
dairying, raising of livestock or poultry, the culture of fish
and other aquatic products in farms or ponds, and any
activities performed by a farmer or on a farm as an incident CHAPTER I
to or in conjunction with such farming operations, but does Wage Increase
not include the manufacturing and/or processing of sugar,
coconut, abaca, tobacco, pineapple, aquatic or other farm SECTION 1. Coverage. — The wage increase prescribed
products; under the Act shall apply to all workers and employees in
the private sector regardless of their position, designation or
e) "Plantation Agricultural Enterprise" is one engaged in status, and irrespective of the method by which their wages
agriculture within an area of more than 24 hectares in a are paid, except:
locality and/or which employs at least 20 workers. Any other
agricultural enterprise shall be considered as "Non-Plantation a) Household or domestic helpers, including family drivers
Agricultural Enterprises"; and workers in the personal service of another;

f) "Retail Establishment" is one principally engaged in the b) Workers and employees in retail/service establishments
sale of goods to end-users for personal or household use; regularly employing not more than 10 workers, when
exempted from compliance with the Act, for a period fixed
Duman / Labor I / Prof. Battad / Page 91
by the Commission/Boards in accordance with Section 4 (c) c) Workers and employees who, prior to July 1, 1989, were
of the Act and Section 15, Chapter 1 of these Rules; receiving a basic wage of more than P100.00 per day or its
monthly equivalent, are not by law entitled to the wage
increase provided under the Act. They may however, receive
c) Workers and employees in new business enterprises
wage increases through the correction of wage distortions in
outside the National Capital Region and export processing
accordance with Section 16, Chapter I of these Rules.
zones for a period of not more than two or three years, as
the case may be, from the start of operations when
exempted in accordance with Section 5 of the Act and SECTION 5. Daily Statutory Minimum Wage Rates. — The
Section 15, Chapter I of these Rules; daily minimum wage rates of workers and employees shall
be as follows:
d) Workers and employees receiving a basic wage of more
than P100.00 per day. Sector/Industry Under Under
R. A. 6640 R. A. 6727
(Effective (Effective
SECTION 2. Effectivity. — The Act takes effect on July 1,
Dec. 14, July 1,
1989, 15 days following its complete publication in two
1987) 1989)
newspapers of general circulation on June 15, 1989 pursuant
to Section 15 thereof.
A. NATIONAL CAPITAL REGION
SECTION 3. Amount of Minimum Wage Increase. — Effective
July 1, 1989, the daily statutory minimum wage rates of Non-Agriculture P64.00 P89.00
covered workers and employees shall be increased as
follows:
Agriculture
Plantation 54.00 79.00
a) P25.00 for those in the National Capital Region;
Non-Plantation 43.50 68.50
b) P25.00 for those outside the National Capital Region,
except for the following:
Cottage/Handicraft
Employing more than 30
P20.00 for those in plantation agricultural enterprises with workers 52.00 77.00
an annual gross sales of less than P5 million in the fiscal
year immediately preceding the effectivity of the Act;
Employing not more than
30 workers 50.00 75.00
P15.00 for those in the following enterprises:
Private Hospitals
1. Non-plantation agriculture With bed capacity of more
than 100 64.00 89.00
2. Cottage/handicraft
With bed capacity of 100
or less 60.00 85.00
3. Retail/Service regularly employing not more than 10
workers
Retail/Service
Employing more than 15
4. Business enterprises with a capitalization of not more than
workers 64.00 89.00
P500,000 and employing not more than 20 workers.

Employing 11 to 15
SECTION 4. When Wage Increase Due Other Workers. — a)
workers 60.00 85.00
All workers and employees who, prior to July 1, 1989, were
already receiving a basic wage above the statutory minimum
wage rates provided under Republic Act 6640 but not over Employing not more than
P100.00 per day shall receive a wage increase equivalent to 10 workers 43.00 68.00
that provided in the preceding Section.
B. OUTSIDE NATIONAL CAPITAL REGION
b) Those receiving not more than the following monthly
basic wage rates prior to July 1, 1989 shall be deemed
Non-Agriculture 64.00 89.00
covered by the preceding subsection:

Agriculture
(i) P3,257.50 — where the workers and employees work
Plantation with annual gross
everyday, including premium payments for Sundays or rest
sales of P5M or more 54.00 79.00
days, special days and regular holidays.

Plantation with annual gross

(ii) P3,041.67 — where the workers and employees do not
sales of less than P5M 54.00 74.00
work but considered paid on rest days, special days and
regular holidays.
Non-plantation 43.50 58.50
(iii) P2,616.67 — where the workers and employees do not
work and are not considered paid on Sundays or rest days. Cottage/Handicraft
Employing more than
30 workers 52.00 67.00
(iv) P2,183.33 — where the workers and employees do not
work and are not considered paid on Saturdays and Sundays
or rest days.
Duman / Labor I / Prof. Battad / Page 92
Employing not more Equivalent Applicable daily wage rate (ADR) x 390.90 days
than 30 workers 50.00 65.00
Monthly = ———————————————————
Private Hospitals 60.00 85.00
Rate (EMR) 12
Retail/Service
Cities w/ population of more
Where 390.90 days =
than 150,000

302 days Ordinary working days

Employing more than
15 workers 64.00 89.00
20 days 10 regular holidays x 200%
Employing 11 to 15 workers 60.00 85.00
66.30 days 51 rest days x 130%
Employing not more than
10 workers 43.00 58.00 2.60 days 2 special days x 130%

Sugar Mills 390.90 days Total equivalent number of days.

Agriculture b) For those who do not work but considered paid on rest
days, special days and regular holidays:
ADR x 365 days
Plantation w/ annual gross
sales of P5M or more 48.50 73.50
EMR = ————————
Plantation w/ annual gross
sales of less than P5M 48.50 68.50 12

Non-plantation 43.50 58.50 Where 365 days =

Business Enterprises w/ Capitalization 302 days Ordinary working days

of not more than P500,000 and
employing not more than 20 workers 51 days Rest days
Non-Agriculture 64.00 79.00

10 days Regular holidays

Agriculture Plantation
Products Other than Sugar 54.00 69.00
2 days Special days
Sugar 48.50 63.50
365 days Total equivalent number of days
Private Hospitals 60.00 75.00
c) For those who do not work and are not considered paid
on Sundays or rest days:
Retail/Service ADR x 314 days
Cities w/ population of more
than 150,000
EMR = ———————
Employing more than
15 workers 64.00 79.00 12

Employing 11 to 15 workers 60.00 75.00 Where 314 days =

Municipalities and Cities 302 days Ordinary working days

w/ population of not more
than 150,000 10 days Regular holidays

Employing more than 10 2 days Special days (If considered

workers 60.00 75.00

paid; If actually worked,

SECTION 6. Suggested Formula in Determining the
Equivalent Monthly Statutory Minimum Wage Rates. —
Without prejudice to existing company practices, this is equivalent to 2.6 days)
agreements or policies, the following formula may be used
as guides in determining the equivalent monthly statutory 314 days Total equivalent number of days
minimum wage rates:
d) For those who do not work and are not considered paid
a) For those who are required to work everyday including on Saturdays or rest days:
Sundays or rest days, special days and regular holidays: ADR x 262 days

Duman / Labor I / Prof. Battad / Page 93

EMR = ——————— 3) Existing rate/piece + increase in rate/piece = Adjusted
rate/piece.
12
Where AMW is the applicable minimum wage rate.
Where 262 days =
b) The wage rates of workers who are paid by results shall
continue to be established in accordance with Article 101 of
250 days Ordinary working days
the Labor Code, as amended and its implementing
regulations.
10 days Regular holidays
SECTION 10. Wages of Special Groups of Workers. — Wages
2 days Special days (If considered paid; If actually of apprentices, learners and handicapped workers shall in no
case be less than 75 percent of the applicable statutory
worked, this is equivalent to 2.6 days) minimum wage rates.

262 days Total equivalent number of days All recognized learnership and apprenticeship agreements
entered into before July 1, 1989 shall be considered as
automatically modified insofar as their wage clauses are
Note: For workers whose rest days fall on Sundays, the concerned to reflect the increases prescribed under the Act.
number of rest days in a year is reduced from 52 to 51 days,
the last Sunday of August being a regular holiday under
Executive Order No. 201. For purposes of computation, said SECTION 11. Application to Contractors. — In the case of
holiday, although still a rest day for them, is included in the contracts for construction projects and for security, janitorial
ten regular holidays. For workers whose rest days do not fall and similar services, the prescribed wage increases shall be
on Sundays, the number of rest days is 52 days, as there borne by the principals or clients of the construction/service
are 52 weeks in a year. contractors and the contract shall be deemed amended
accordingly. In the event, however, that the principal or
client fails to pay the prescribed wage rates, the
Nothing herein shall be considered as authorizing the construction/service contractor shall be jointly and severally
reduction of benefits granted under existing agreements or liable with his principal or client.
employer practices/policies.
SECTION 12. Application to Private Educational Institution.
SECTION 7. Basis of Minimum Wages Rates. — The — Private educational institutions which increased tuition
statutory minimum wage rules prescribed under the Act shall fees beginning school year 1989-1990 shall comply with the
be for the normal working hours, which shall not exceed P25.00 per day wage increase prescribed under the Act
eight hours work a day. effective as follows:

SECTION 8. Creditable Wage Increase. — a) In cases where the tuition fee increase was effected
before the effectivity of the Act, the wage increase shall take
a) No wage increase shall be credited as compliance with effect only July 1, 1989.
the increases prescribed under the Act unless expressly
provided under collective bargaining agreements; and, such b) In cases where the tuition fee increase was effected on or
wage increase was granted not earlier than April 1, 1989 but after the effectivity of the Act, the wage increase shall take
not later than July 1, 1989. Where the wage increase effect not later than the date the school actually increased
granted is less than the prescribed increase under the Act, tuition but in the latter case, such wage increase may not be
the employer shall pay the difference. made retroactive in July 1, 1989.

b) Anniversary wage increase provided in collective Beginning school year 1990-1991, all schools shall
agreements, merit wage increase, and those resulting from implement the wage increase regardless of whether or not
the regularization or promotion of employees shall not be they have actually increased tuition fees.
credited as compliance thereto.
SECTION 13. Mobile and Branch Workers. — The statutory
SECTION 9. Workers Paid by Results. — minimum wage rates of workers, who by the nature of their
work have to travel, shall be those applicable in the domicile
a) All workers paid by results, including those who are paid or head office of the employer.
on piecework, takay, pakyaw, or task basis, shall receive not
less than the applicable statutory minimum wage rates The minimum wage rates of workers working in branches or
prescribed under the Act for the normal working hours which agencies of establishments in or outside the National Capital
shall not exceed eight hours work a day, or a proportion Region shall be those applicable in the place where they are
thereof for work of less than the normal working hours. stationed.

The adjusted minimum wage rates for workers paid by SECTION 14. Transfer of Personnel. — The transfer of
results shall be computed in accordance with the following personnel to areas outside the National Capital Region shall
steps: not be a valid ground for the reduction of the wage rates
being enjoyed by the workers prior to such transfer. The
1) Amount of increase in AMW - Previous AMW x 100 = % workers transferred to the National Capital Region shall be
Increase; entitled to the minimum wage rate applicable therein.

2) Existing rate/piece x % increase = increase in rate/piece; SECTION 15. Exemptions. —

a) The following establishments may be exempted from

compliance with the wage increase prescribed under the Act:
Duman / Labor I / Prof. Battad / Page 94
1) Retail/Service establishments regularly employing not The worker's representative shall have the right to submit
more than 10 workers upon application with and as his own findings to the Department and to testify on the
determined by the appropriate Board in accordance with same if he does not concur with the findings of the labor
applicable guidelines to be issued by the Commission. inspector.

2) New business enterprises that may be established outside SECTION 19. Payment of Wages. — Upon written petition of
the National Capital Region and export processing zones the majority of the workers and employees concerned, all
from July 1, 1989 to June 30, 1993, whose operation or private establishments, companies, businesses and other
investments need initial assistance may be exempted for not entities with at least twenty workers and located within one
more than three years from the start of operations, subject kilometer radius to a commercial, savings or rural bank, shall
to guidelines to be issued by the Secretary in consultation pay the wages and other benefits of their workers through
with the Department of Trade and Industry and the any of said banks, within the period and in the manner and
Department of Agriculture. form prescribed under the Labor Code as amended.

New business enterprises in Region III (Central Luzon) and SECTION 20. Duty of Bank. — Whenever applicable and
Region IV (Southern Tagalog) may be exempted for two upon request of concerned worker or union, the bank
years only from start of operations, except those that may through which wages and other benefits are paid issue a
be established in the provinces of Palawan, Oriental certification of the record of payment of said wages and
Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon benefits of a particular worker or workers for a particular
and Aurora, which may also be exempted for not more than payroll period.
three years from the start of operations.
CHAPTER II
b) Whenever an application for exemption has been duly The National Wages and Productivity Commission and
filed with the appropriate office in the Department/Board, Regional Tripartite Wages and Productivity Boards
action by the Regional Office of the Department on any
complaints for alleged non-compliance with the Act shall be
SECTION 1. Commission. — The National Wages and
deferred pending resolution of the applicant for exemption.
Productivity Commission created under the Act shall hold
office in the National Capital Region. The Commission shall
c) In the event that the application for exemption is not be attached to the Department for policy and program
granted, the workers and employees shall receive the coordination.
appropriate compensation due them as provided for under
the Act plus interest of one percent per month retroactive to
SECTION 2. Powers and Functions of the Commission. —
July 1, 1989 or the start of operations whichever is
The Commission shall have the following powers and
applicable.
functions:

SECTION 16. Effects on Existing Wage Structure. — Where

a) To act as the national consultative and advisory body to
the application of the wage increase prescribed herein
the President of the Philippines and Congress on matters
results in distortions in the wage structure within an
relating to wages, incomes and productivity;
establishment which gives rise to a dispute therein, such
dispute shall first be settled voluntarily between the parties.
In the event of a deadlock, such dispute shall be finally b) To formulate policies and guidelines on wages, incomes
resolved through compulsory arbitration by the regional and productivity improvement at the enterprise, industry and
arbitration branch of the National Labor Relations national levels;
Commission (NLRC) having jurisdiction over the workplace.
c) To prescribe rules and guidelines for the determination of
The NLRC shall conduct continuous hearings and decide any appropriate minimum wage and productivity measures at the
dispute arising from wage distortions within twenty calendar regional, provincial or industry levels;
days from the time said dispute is formally submitted to it
for arbitration. The pendency of a dispute arising from a d) To review regional wage levels set by the Regional
wage distortion shall not in any way delay the applicability of Tripartite Wages and Productivity Board to determine if
the increases in the wage rates prescribed under the Act. these are in accordance with prescribed guidelines and
national development plans;
Any issue involving wage distortion shall not be a ground for
a strike/lockout. e) To undertake studies, researches and surveys necessary
for the attainment of its functions and objectives, and to
SECTION 17. Complaints for Non-Compliance. — Complaints collect and compile data and periodically disseminate
for non-compliance with the wage increases prescribed information on wages and productivity and other related
under the Act shall be filed with the Regional Offices of the information, including, but not limited to, employment, cost-
Department having jurisdiction over the workplace and shall of-living, labor costs, investments and returns;
be the subject of enforcement proceedings under Articles
128 and 129 of the Labor Code, as amended. f) To review plans and programs of the Regional Tripartite
Wages and Productivity Boards to determine whether these
SECTION 18. Conduct of inspection by the Department. — are consistent with national development plans;
The Department shall conduct inspections of establishments,
as often as necessary, to determine whether the workers are g) To exercise technical and administrative supervision over
paid the prescribed wage rates and other benefits granted the Regional Tripartite Wages and Productivity Boards;
by law or any Wage Order. In the conduct of inspection in
unionized companies, Department inspectors shall always be
accompanied by the president or other responsible officer of h) To call, from time to time, a national tripartite conference
the recognized bargaining unit or of any interested union. In of representatives of government, workers and employers
the case of non-unionized establishments, a worker for the consideration of measures to promote wage
representing the workers in the said company shall rationalization and productivity; and
accompany the inspector.
Duman / Labor I / Prof. Battad / Page 95
i) To exercise such powers and functions as may be have technical supervision over the Regional Office of the
necessary to implement this Act. Department with respect to the implementation of these
plans, programs and projects.
SECTION 3. Composition of the Commission. — The
Commission shall be composed of the Secretary as ex-officio SECTION 7. Compositions of the Boards. — Each Board shall
Chairman, the Director General of the National Economic be composed of the Regional Director of the Department as
and Development Authority (NEDA) as ex-officio Vice- Chairman, the Regional Directors of the National Economic
Chairman and two members each from workers and and Development Authority (NEDA) and Department of
employers sectors who shall be appointed by the President Trade and Industry (DTI) as Vice-Chairmen and two
for a term of five years upon recommendation of the members each of workers and employers sectors who shall
Secretary. The recommendees shall be selected from the be appointed by the President for a term of five years upon
lists of nominees submitted by the workers' and employers' the recommendation of the Secretary. The recommendees
sectors. The Executive Director of the Commission shall be selected from the list of nominees submitted by the
Secretariat shall be also a member of the Commission. workers and employers sectors.

The members of the Commission representing labor and Each Board shall be assisted by a Secretariat.
management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for
SECTION 8. Authority to Organize and Appoint Personnel. —
labor and management representatives in the Employees'
The Chairman of the Commission shall organize such units
Compensation Commission.
and appoint the necessary personnel of the Commission and
Board Secretaries, subject to pertinent laws, rules and
SECTION 4. Commission Secretariat. — The Commission regulations.
shall be assisted by a Secretariat to be headed by an
Executive Director and two Deputy Directors who shall be
CHAPTER III
appointed by the President upon recommendation of the
Minimum Wage Determination
Secretary.

SECTION 1. Regional Minimum Wages. — The minimum

The Executive Director shall have the rank of a Department
wage rates for agricultural and non-agricultural workers and
Assistant Secretary, while the Deputy Directors that of a
employees in every region shall be those prescribed by the
Bureau Director. The Executive Director and Deputy
Boards which shall in no case be lower than the statutory
Directors shall receive the corresponding salary, benefits and
minimum wage rates. These wage rates may include wages
other emoluments of the positions.
by industry, province or locality as may be deemed
necessary by the Boards.
SECTION 5. Regional Tripartite Wages and Productivity
Boards. — The Regional Wages and Productivity Boards
SECTION 2. Standards/Criteria for Minimum Wage Fixing. —
created under the Act in all regions, including autonomous
The regional minimum wages to be established by the
regions as may be established by law, shall hold offices in
Boards shall be as nearly adequate as is economically
areas where the Regional Offices of the Department are
feasible to maintain the minimum standards of living
located.
necessary for the health, efficiency and general well-being of
the workers within the framework of the national economic
SECTION 6. Powers and Functions of the Boards. — The and social development programs. In the determination of
Boards shall have the following powers and functions: regional minimum wages, the Boards, shall, among other
relevant factors, consider the following:
a) To develop plans, programs and projects relative to
wages, incomes and productivity improvement for their a) The demand for living wages;
respective regions;
b) Wage adjustment vis-a-vis the consumer price index;
b) To determine and fix minimum wage rates applicable in
their region, provinces or industries therein and to issue the
c) The cost of living and changes or increases therein;
corresponding wage orders, subject to guidelines issued by
the Commission;
d) The needs of workers and their families;
c) To undertake studies, researches, and surveys necessary
for the attainment of their functions, objectives and e) The need to induce industries to invest in countryside;
programs, and to collect and compile data on wages,
incomes, productivity and other related information and f) Improvements in standards of living;
periodically disseminate the same;

g) The prevailing wage levels;

d) To coordinate with the other Boards as may be necessary
to attain the policy and intention of the Labor Code;
h) Fair return of the capital invested and capacity to pay of
employers;
e) To receive, process and act on applications for exemption
from prescribed wage rates as may be provided by law or
any Wage Order; and i) Effects on employment generation and family income; and

f) To exercise such other powers and functions as may be j) The equitable distribution of income and wealth along the
necessary to carry out their mandate under the Labor Code. imperatives of economic and social development.

Implementation of the plans, programs and projects of the SECTION 3. Wage Order. — Whenever conditions in the
Boards shall be through the respective Regional Offices of region so warrant, the Board shall investigate and study all
the Department, provided, however, that the Boards shall pertinent facts; and, based on standards and criteria

Duman / Labor I / Prof. Battad / Page 96

prescribed herein, shall determine whether a Wage Order the Act shall not be entitled to the benefits provided for
should be issued. under the Probation Law.

In the performance of its wage determining functions, the If the violation is committed by a corporation, trust or firm,
Board shall conduct public hearings and consultations giving partnership, association or any other entity, the penalty of
notices to employees' and employers' groups, provincial, city imprisonment shall be imposed upon the entity's responsible
and municipal officials and other interested parties. officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager,
managing director or partner.
SECTION 4. Effectivity of Wage Order. — Any Wage Order
issued by the Board shall take effect 15 days after its
complete publication in at least one newspaper of general SECTION 11. Registration/Reporting Requirement. — Any
circulation in the region. person, company, corporation, partnership or any other
entity engaged in business shall submit annually a verified
itemized listing of their labor component to the appropriate
SECTION 5. Appeal to the Commission. — Any party
Board and the National Statistics Office not later than
aggrieved by the Wage Order issued by the Board may file
January 31 of each year, starting on January 31, 1990 in
an appeal with the Commission within ten calendar days
accordance with the form to be prescribed by the
from the publication of the Order. The Commission shall
Commission. The listing shall specify the names, salaries and
decide the appeal within sixty calendar days from the date of
wages of their workers and employees below the managerial
filing.
level including learners, apprentices and
disabled/handicapped workers.
SECTION 6. Effect of Appeal. — The filing of the appeal shall
not suspend the effectivity of the Wage Order unless the
CHAPTER IV
person appealing such order files with the Commission an
Transitory Provisions
undertaking with a surety or sureties in such amount as may
be fixed by the Commission.
SECTION 1. Abolition of the National Wages Council and the
National Productivity Commission. — The National Wages
SECTION 7. Wage Distortions. — Where the application of
Council created under Executive Order No. 614 and the
any wage increase resulting from a Wage Order issued by
National Productivity Commission created under Executive
any Board results in distortions in the wage structure within
Order No. 615 are abolished. All properties, records,
an establishment, the employer and the union shall
equipment, buildings, facilities, and other assets, liabilities
negotiate to correct the distortions using the grievance
and appropriations of and belonging to the abovementioned
procedure under their collective bargaining agreement. If it
offices, as well as other matters pending herein, shall be
remains unresolved, it shall be decided through voluntary
transferred to the Commission. All personnel of the above
arbitration ten calendar days from the time the dispute was
abolished offices shall continue to function in a hold-over
referred for voluntary arbitration, unless otherwise agreed
capacity and shall be preferentially considered for
by the parties in writing.
appointments to or placements in the Commission/Boards.

Where there are no collective agreements or recognized

Any official or employee separated from the service as a
labor unions, the employer and workers shall endeavor to
result of the abolition of offices pursuant to the Act shall be
correct the wage distortion. Any dispute arising therefrom
entitled to appropriate separation pay of one month salary
shall be settled through the National Conciliation and
for every year of service and/or retirement and other
Mediation Board and if it remains unresolved after ten
benefits accruing to them under existing laws. In lieu
calendar days of conciliation, it shall be referred to the
thereof, at the option of the employee, he shall be
appropriate branch of the National Labor Relations
preferentially considered for employment in the government
Commission (NLRC). The NLRC shall conduct continuous
or in any of its subdivisions, instrumentalities, or agencies,
hearings and decide the dispute within twenty calendar days
including government owned or controlled corporations and
from the time said dispute is submitted for compulsory
their subsidiaries.
arbitration.

SECTION 2. Interim Processing of Applications for Exemption

The pendency of a dispute arising from a wage distortion
and Submission of Reports. — Pending the operationalization
shall not in any way delay the applicability of any wage
of the Commission and Boards, the National Wages Council
increase prescribed pursuant to the provisions of law or
shall, in the interim, receive and process applications for
Wage Order.
exemption subject to guidelines to be issued by the
Secretary, in accordance with Section 11 of the Act.
SECTION 8. Non-Diminution of Benefits. — Nothing in the
Act and in these Rules shall be construed to reduce any
Reports of establishments on their labor component,
existing laws, decrees, issuances, executive orders, and/or
including wages and salaries of their workers prescribed
under any contract or agreement between the workers and
under the Act, shall be submitted to the National Wages
employers.
Council through the Regional Offices of the Department.

SECTION 9. Prohibition Against Injunction. — No preliminary

SECTION 3. Funding Requirement. — The funds necessary
or permanent injunction or temporary restraining order may
to carry out the provisions of the Act shall be taken from the
be issued by any court, tribunal or other entity against any
Compensation and Organization Adjustment Fund, the
proceedings before the Commission or Boards.
Contingent Fund, and other savings under Republic Act No.
6688, otherwise known as the General Appropriations Act of
SECTION 10. Penal Provisions. — Any person, corporation 1989, or from any unappropriated funds of the National
trust, firm, partnership, association or entity which refuses Treasury; Provided, that the funding requirements necessary
or fails to pay any of the prescribed increases or to implement the Act shall be included in the annual General
adjustments in the wage rates made in accordance with the Appropriations Act for the succeeding years.
Act shall be punished by a fine not exceeding P25,000
and/or imprisonment of not less than one year nor more
SECTION 4. Repealing Clause. — All laws, orders, issuances,
than two years: Provided, that any person convicted under
rules and regulations or parts thereof inconsistent with the
Duman / Labor I / Prof. Battad / Page 97
provisions of the Act and this Rules are hereby repealed, (c) Under any other analogous circumstances; Provided,
amended or modified accordingly. If any provision or part of That the time spent by the employees in collecting their
the Act and this Rules, or the application thereof to any wages shall be considered as compensable hours worked;
person or circumstance is held invalid or unconstitutional,
the remainder of the Act and these Rules or the application
(d) No employer shall pay his employees in any bar, night or
of such provision or part thereof to other persons or
day club, drinking establishment, massage clinic, dance hall,
circumstance shall not be affected thereby.
or other similar places or in places where games are played
with stakes of money or things representing money except
SECTION 5. Effectivity. — These rules shall take effect on in the case of persons employed in said places.
July 1, 1989.
SECTION 5. Direct payment of wages. — Payment of wages
RULE VIII shall be made direct to the employee entitled thereto except
Payment of Wages in the following cases:

SECTION 1. Manner of wage payment. — As a general rule, (a) Where the employer is authorized in writing by the
wages shall be paid in legal tender and the use of tokens, employee to pay his wages to a member of his family;
promissory notes, vouchers, coupons, or any other form
alleged to represent legal tender is absolutely prohibited
(b) Where payment to another person of any part of the
even when expressly requested by the employee.
employee's wages is authorized by existing law, including
payments for the insurance premiums of the employee and
SECTION 2. Payment by check. — Payment of wages by union dues where the right to check-off has been recognized
bank checks, postal checks or money orders is allowed by the employer in accordance with a collective agreement
where such manner of wage payment is customary on the or authorized in writing by the individual employees
date of the effectivity of the Code, where it is so stipulated concerned; or
in a collective agreement, or where all of the following
conditions are met:
(c) In case of death of the employee as provided in the
succeeding Section.
(a) There is a bank or other facility for encashment within a
radius of one (1) kilometer from the workplace;
SECTION 6. Wages of deceased employee. — The payment
of the wages of a deceased employee shall be made to his
(b) The employer or any of his agents or representatives heirs without the necessity of intestate proceedings. When
does not receive any pecuniary benefit directly or indirectly the heirs are of age, they shall execute an affidavit attesting
from the arrangement; to their relationship to the deceased and the fact that they
are his heirs to the exclusion of all other persons. In case
any of the heirs is a minor, such affidavit shall be executed
(c) The employees are given reasonable time during banking
in his behalf by his natural guardian or next of kin. Upon
hours to withdraw their wages from the bank which time
presentation of the affidavit to the employer, he shall make
shall be considered as compensable hours worked if done
payment to the heirs as representative of the Secretary of
during working hours; and
Labor and Employment.

(d) The payment by check is with the written consent of the

SECTION 7. Civil liability of employer and contractors. —
employees concerned if there is no collective agreement
Every employer or indirect employer shall be jointly and
authorizing the payment of wages by bank checks.
severally liable with his contractor or sub-contractor for the
unpaid wages of the employees of the latter. Such employer
SECTION 3. Time of payment. — (a) Wages shall be paid or indirect employer may require the contractor or sub-
not less than once every two (2) weeks or twice a month at contractor to furnish a bond equal to the cost of labor under
intervals not exceeding sixteen (16) days, unless payment contract on condition that the bond will answer for the
cannot be made with such regularity due to force majeure or wages due the employees should the contractor or
circumstances beyond the employer's control in which case subcontractor, as the case may be, fail to pay the same.
the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
SECTION 8. Job Contracting. — There is job contracting
permissible under the Code if the following conditions are
(b) In case of payment of wages by results involving work met:
which cannot be finished in two (2) weeks, payment shall be
made at intervals not exceeding sixteen days in proportion
(a) The contractor carries on an independent business and
to the amount of work completed. Final settlement shall be
undertakes the contract work on his own account under his
made immediately upon completion of the work.
own responsibility according to his own manner and method,
free from the control and direction of his employer or
SECTION 4. Place of payment. — As a general rule, the principal in all matters connected with the performance of
place of payment shall be at or near the place of the work except as to the results thereof; and
undertaking. Payment in a place other than the work place
shall be permissible only under the following circumstances:
(b) The contractor has substantial capital or investment in
the form of tools, equipment, machineries, work premises,
(a) When payment cannot be effected at or near the place and other materials which are necessary in the conduct of
of work by reason of the deterioration of peace and order his business.
conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering
SECTION 9. Labor-only contracting. — (a) Any person who
payment thereat impossible;
undertakes to supply workers to an employer shall be
deemed to be engaged in labor-only contracting where such
(b) When the employer provides free transportation to the person:
employees back and forth; and

Duman / Labor I / Prof. Battad / Page 98

(1) Does not have substantial capital or investment in the (a) That the employee concerned is clearly shown to be
form of tools, equipment, machineries, work premises and responsible for the loss or damage;
other materials; and
(b) That the employee is given reasonable opportunity to
(2) The workers recruited and placed by such person are show cause why deduction should not be made;
performing activities which are directly related to the
principal business or operations of the employer in which
(c) That the amount of such deduction is fair and reasonable
workers are habitually employed.
and shall not exceed the actual loss or damage; and

(b) Labor-only contracting as defined herein is hereby

(d) That the deduction from the wages of the employee
prohibited and the person acting as contractor shall be
does not exceed 20 percent of the employee's wages in a
considered merely as an agent or intermediary of the
week.
employer who shall be responsible to the workers in the
same manner and extent as if the latter were directly
employed by him.
1. Minimum Wage, Art. 99; Consti., Art. XIII, Sec. 3
(c) For cases not falling under this Rule, the Secretary of
MINIMUM WAGE RATES
Labor and Employment shall determine through appropriate
orders whether or not the contracting out of labor is
ART. 99. Regional minimum wages. - The minimum wage
permissible in the light of the circumstances of each case
rates for agricultural and non-agricultural employees and
and after considering the operating needs of the employer
workers in each and every region of the country shall be
and the rights of the workers involved. In such case, he may
those prescribed by the Regional Tripartite Wages and
prescribe conditions and restrictions to insure the protection
Productivity Boards. (As amended by Section 3, Republic Act
and welfare of the workers.
No. 6727, June 9, 1989).

SECTION 10. Payment of wages in case of bankruptcy. — Art XIII, Section 3. The State shall afford full protection to
Unpaid wages earned by the employees before the labor, local and overseas, organized and unorganized, and
declaration of bankruptcy or judicial liquidation of the promote full employment and equality of employment
employer's business shall be given first preference and shall opportunities for all.
be paid in full before other creditors may establish any claim
to a share in the assets of the employer.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
SECTION 11. Attorney's fees. — Attorney's fees in any peaceful concerted activities, including the right to strike in
judicial or administrative proceedings for the recovery of accordance with law. They shall be entitled to security of
wages shall not exceed 10 percent of the amount awarded. tenure, humane conditions of work, and a living wage. They
The fees may be deducted from the total amount due the shall also participate in policy and decision-making processes
winning party. affecting their rights and benefits as may be provided by
law.
SECTION 12. Non-interference in disposal of wages. — No
employer shall limit or otherwise interfere with the freedom The State shall promote the principle of shared responsibility
of any employee to dispose of his wages and no employer between workers and employers and the preferential use of
shall in any manner oblige any of his employees to patronize voluntary modes in settling disputes, including conciliation,
any store or avail of the services offered by any person. and shall enforce their mutual compliance therewith to foster
industrial peace.
SECTION 13. Wages deduction. — Deductions from the
wages of the employees may be made by the employer in The State shall regulate the relations between workers and
any of the following cases: employers, recognizing the right of labor to its just share in
the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
(a) When the deductions are authorized by law, including
growth.
deductions for the insurance premiums advanced by the
employer in behalf of the employee as well as union dues
a. Coverage, Arts. 97 (b) (c) (e), 98
where the right to check-off has been recognized by the
employer or authorized in writing by the individual employee
ART. 97. Definitions. - As used in this Title:
himself.

(b) "Employer" includes any person acting directly or

(b) When the deductions are with the written authorization
indirectly in the interest of an employer in relation to an
of the employees for payment to the third person and the
employee and shall include the government and all its
employer agrees to do so; Provided, That the latter does not
branches, subdivisions and instrumentalities, all
receive any pecuniary benefit, directly or indirectly, from the
government-owned or controlled corporations and
transaction.
institutions, as well as non-profit private institutions, or
organizations.
SECTION 14. Deduction for loss or damage. — Where the
employer is engaged in a trade, occupation or business
(c) "Employee" includes any individual employed by an
where the practice of making deductions or requiring
employer.
deposits is recognized to answer for the reimbursement of
loss or damage to tools, materials, or equipment supplied by
the employer to the employee, the employer may make e) "Employ" includes to suffer or permit to work.
wage deductions or require the employees to make deposits
from which deductions shall be made, subject to the ART. 98. Application of Title. - This Title shall not apply to
following conditions: farm tenancy or leasehold, domestic service and persons
working in their respective homes in needle work or in any
cottage industry duly registered in accordance with law.

Duman / Labor I / Prof. Battad / Page 99

 Philippine Fisheries Development
Authority v. NLRC, 213 SCRA 621 (1992)

4) Form: Agreement for Compensation of

Services
b. Rules
 Arms Taxi v. NLRC, 219 SCRA 306
1) Definition (1993)

 Chavez v. NLRC, supra

2) No Work, No Pay (A fair day’s wage for a fair day’s

labor)

 Aklan Electric Corp., Inc. v. NLRC,

323 SCRA 259 (2000)

3) Equal Pay for Work of Equal Value c. Minimum Wage

 International School Alliance of 1) Determination of Compliance with Minimum Wage

Educators v. Quisumbing, supra
 Iran v. NLRC, 289 SCRA 433
(1998)

 Bankard Employers Union v. NLRC,

423 SCRA 148 (2004)
Duman / Labor I / Prof. Battad / Page 100
 2) Facilities and Supplements/Allowances
 Boie Takeda v. De la Serna, 228
 Millares v. NLRC & PICOP, 305 SCRA 329 (1993)
SCRA 500 (1999)

3) Cash Wage/Commission  Philippine Duplicators v. NLRC, 241

SCRA 380 (1995)
 Songco v. NLRC, 183 SCRA 610
(1990)

Duman / Labor I / Prof. Battad / Page 101

 4) Gratuity and Salary/Wages, Difference
2. Wage Fixing Machinery
 Plastic Town Center corp. v.
NLRC, 172 SCRA 580 Reference: Wage Rationalization Act (RA 6727);
(1989) Art. 120-127; Omnibus Rules, Book III, Rule IX

Republic of the Philippines

Congress of the Philippines
Metro Manila
Second Regular Session
Begun and held in Metro Manila, on Monday, the
twenty-
fifth day of July, nineteen hundred and eighty-eight

[REPUBLIC ACT NO. 6727]

AN ACT TO RATIONALIZE WAGE POLICY

DETERMINATION BY ESTABLISHING THE
MECHANISM AND PROPER STANDARDS
THEREFOR, AMENDING FOR THE PURPOSE
ARTICLE 99 OF, AND INCORPORATING ARTICLES
120, 121, 122, 123, 124, 126 AND 127 INTO,
PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF
THE PHILIPPINES, FIXING NEW WAGE RATES,
PROVIDING WAGE INCENTIVES FOR INDUSTRIAL
DISPERSAL TO THE COUNTRYSIDE, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of

Representatives of the Philippines in Congress
assembled:

Sec. 1. This Act shall be known as the "Wage

Rationalization Act."

Sec. 2. It is hereby declared the policy of the State

to rationalize the fixing of minimum wages and to
promote productivity-improvement and gain-sharing
measures to ensure a decent standard of living for the
workers and their families; to guarantee the rights of
5) Effect on Benefits labor to its just share in the fruits of production; to
enhance employment generation in the countryside
 Davao Fruits Corporation v. through industry dispersal; and to allow business and
Associated Labor Union, 225 SCRA 562 (1993) industry reasonable returns on investment, expansion
and growth.

Duman / Labor I / Prof. Battad / Page 102

 The State shall promote collective bargaining as (g) To exercise technical and administrative
the primary mode of setting wages and other terms supervision over the Regional Tripartite Wages and
and conditions of employment; and, whenever Productivity Boards;
necessary, the minimum wage rates shall be adjusted
in a fair and equitable manner, considering existing (h) To call, from time to time, a national tripartite
regional disparities in the cost of living and other conference of representatives of government, workers
socio-economic factors and the national economic and employers for the consideration of measures to
and social development plans. promote wage rationalization and productivity; and

Sec. 3. In line with the declared policy under this (i) To exercise such powers and functions as may be
Act, Article 99 of Presidential Decree No. 442, as necessary to implement this Act.
amended, is hereby amended and Articles 120, 121,
122, 123, 124, 126 and 127 are hereby incorporated
into Presidential Decree No. 442, as amended, to "The Commission shall be composed of the
read as follows: Secretary of Labor and Employment as ex-officio
chairman, the Director-General of the National
Economic and Development Authority (NEDA) as ex-
"Art. 99. Regional Minimum Wages. - The minimum officio vice-chairman, and two (2) members each from
wage rates for agricultural and non-agricultural workers and employers sectors who shall be
employees and workers in each and every region of appointed by the President of the Philippines upon
the country shall be those prescribed by the Regional recommendation of the Secretary of Labor and
Tripartite Wages and Productivity Boards." Employment to be made on the basis of the list of
nominees submitted by the workers and employers
"Art. 120. Creation of the National Wages and sectors, respectively, and who shall serve for a term
Productivity Commission. - There is hereby created a of five (5) years. The Executive Director of the
National Wages and Productivity Commission, Commission Secretariat shall also be a member of
hereinafter referred to as the Commission, which shall the Commission."
be attached to the Department of Labor and
Employment (DOLE) for policy and program "The Commission shall be assisted by a Secretariat
coordination." to be headed by an Executive Director and two (2)
Deputy Directors, who shall be appointed by the
"Art. 121. Powers and Functions of the President of the Philippines, upon recommendation of
Commission. - The Commission shall have the the Secretary of Labor and Employment."
following powers and functions:
"The Executive Director shall have the same rank,
(a) To act as the national consultative and advisory salary, benefits and other emoluments as that of a
body to the President of the Philippines and Congress Department Assistant Secretary, while the Deputy
on matters relating to wages, incomes and Directors shall have the same rank, salary, benefits
productivity; and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
(b) To formulate policies and guidelines on wages, and management shall have the same rank,
incomes and productivity improvement at the emoluments, allowances and other benefits as those
enterprise, industry and national levels; prescribed by law for labor and management
representatives in the Employees' Compensation
Commission."
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and
productivity measures at the regional, provincial or "Art. 122. Creation of Regional Tripartite Wages
industry levels; and Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all
(d) To review regional wage levels set by the Regional regions, including autonomous regions as may be
Tripartite Wages and Productivity Boards to determine established by law. The Commission shall determine
if these are in accordance with prescribed guidelines the offices/headquarters of the respective Regional
and national development plans; Boards.

(e) To undertake studies, researches and surveys "The Regional Boards shall have the following
necessary for the attainment of its functions and powers and functions in their respective territorial
objectives, and to collect and compile data and jurisdiction:
periodically disseminate information on wages and
productivity and other related information, including,
but not limited to, employment, cost-of-living, labor (a) To develop plans, programs and projects relative
costs, investments and returns; to wages, incomes and productivity improvement for
their respective regions;
(f) To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to determine (b) To determine and fix minimum wage rates
whether these are consistent with national applicable in their region, provinces or industries
development plans; therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission;

Duman / Labor I / Prof. Battad / Page 103

(c) To undertake studies, researches, and surveys Commission to decide such appeal within sixty (60)
necessary for the attainment of their functions, calendar days from the filing thereof.
objectives and programs, and to collect and compile
data on wages, incomes, productivity and other "The filing of the appeal does not operate to stay
related information and periodically disseminate the the order unless the person appealing such order
same; shall file with the Commission an undertaking with a
surety or sureties satisfactory to the Commission for
(d) To coordinate with the other Regional Boards as the payment to the employees affected by the order of
may be necessary to attain the policy and intention of the corresponding increase, in the event such order is
this Code; affirmed."

(e) To receive, process and act on applications for "Art. 124. Standards/Criteria for Minimum Wage
exemption from prescribed wage rates as may be Fixing. The regional minimum wages to be
provided by law or any Wage Order; and established by the Regional Board shall be as nearly
adequate as is economically feasible to maintain the
(f) To exercise such other powers and functions as minimum standards of living necessary for the health,
may be necessary to carry out their mandate under efficiency and general well-being of the employees
this Code. within the framework of the national economic and
social development program. In the determination of
such regional minimum wages, the Regional Board
"Implementation of the plans, programs and shall, among other relevant factors, consider the
projects of the Regional Boards referred to in the following:
second paragraph, letter (a) of this Article, shall be
through the respective regional offices of the
Department of Labor and Employment within their (a) The demand for living wages;
territorial jurisdiction; Provided, however, That the
Regional Boards shall have technical supervision over (b) Wage adjustment vis-à-vis the consumer price
the regional office of the Department of Labor and index;
Employment with respect to the implementation of
said plans, programs and projects. (c) The cost of living and changes or increases
therein;
"Each Regional Board shall be composed of the (d) The needs of workers and their families;
Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of (e) The need to induce industries to invest in the
the National Economic and Development Authority countryside;
and Department of Trade and Industry as vice-
chairmen and two (2) members each from workers (f) Improvements in standards of living;
and employers sectors who shall be appointed by the
President of the Philippines, upon recommendation of (g) The prevailing wage levels;
the Secretary of Labor and Employment, to be made
on the basis of the list of nominees submitted by the (h) Fair return of the capital invested and capacity to
workers and employers sectors, respectively, and who pay of employers;
shall serve for a term of five (5) years.
(i) Effects on employment generation and family
"Each Regional Board to be headed by its chairman income; and
shall be assisted by a Secretariat."
(j) The equitable distribution of income and wealth
"Art. 123. Wage Order. - Whenever conditions in along the imperatives of economic and social
the region so warrant, the Regional Board shall development.
investigate and study all pertinent facts; and, based
on the standards and criteria herein prescribed, shall "The wages prescribed in accordance with the
proceed to determine whether a Wage Order should provisions of this Title shall be the standard prevailing
be issued. minimum wages in every region. These wages shall
include wages varying with industries, provinces or
Any such Wage Order shall take effect after fifteen localities if in the judgment of the Regional Board
(15) days from its complete publication in at least one conditions make such local differentiation proper and
(l) newspaper of general circulation in the region. necessary to effectuate the purpose of this Title.

"In the performance of its wage-determining "Any person, company, corporation, partnership or
functions, the Regional Board shall conduct public any other entity engaged in business shall file and
hearings/consultations, giving notices to employees' register annually with the appropriate Regional Board,
and employers' groups, provincial, city and municipal Commission and the National Statistics Office an
officials and other interested parties. itemized listing of their labor component, specifying
the names of their workers and employees below the
managerial level, including learners, apprentices and
"Any party aggrieved by the Wage Order issued by disabled/handicapped workers who were hired under
the Regional Board may appeal such order to the the terms prescribed in the employment contracts,
Commission within ten (l0) calendar days from the and their corresponding salaries and wages.
publication of such order. It shall be mandatory for the

Duman / Labor I / Prof. Battad / Page 104

 "Where the application of any prescribed wage pesos (P25.00) per day, except that workers and
increase by virtue of a law or Wage Order issued by employees in plantation agricultural enterprises
any Regional Board results in distortions of the wage outside of the National Capital Region (NCR) with an
structure within an establishment, the employer and annual gross sales of less than five million pesos
the union shall negotiate to correct the distortions. (P5,000,000.00) in the preceding year shall be paid
Any dispute arising from wage distortions shall be an increase of twenty pesos (P20.00), and except
resolved through the grievance procedure under their further that workers and employees of
collective bargaining agreement and, if it remains cottage/handicraft industries, non-plantation
unresolved, through voluntary arbitration. Unless agricultural enterprises, retail/service establishments
otherwise agreed by the parties in writing, such regularly employing not more than ten (10) workers,
dispute shall be decided by the voluntary arbitrator or and business enterprises with a capitalization of not
panel of voluntary arbitrators within ten (10) calendar more than five hundred thousand pesos
days from the time said dispute was referred to (P500,000.00) and employing not more than twenty
voluntary arbitration. (20) employees, which are located or operating
outside the NCR, shall be paid only an increase of
"In cases where there are no collective agreements fifteen pesos (P15.00): Provided, That those already
or recognized labor unions, the employers and receiving above the minimum wage rates up to one
workers shall endeavor to correct such distortions. hundred pesos (P100.00) shall also receive an
Any dispute arising therefrom shall be settled through increase of twenty-five pesos (P25.00) per day, and
the National Conciliation and Mediation Board and, if except that the workers and employees mentioned in
it remains unresolved after ten (10) calendar days of the first exception clause of this section shall also be
conciliation, shall be referred to the appropriate paid only an increase of twenty-pesos (P20.00), and
branch of the National Labor Relations Commission except further that those employees enumerated in
(NLRC). It shall be mandatory for the NLRC to the second exception clause of this Section shall also
conduct continuous hearings and decide the dispute be paid only an increase of fifteen pesos (P15.00):
within twenty (20) calendar days from the time said Provide, further, That the appropriate Regional Board
dispute is submitted for compulsory arbitration. is hereby authorized to grant additional increases to
the workers and employees mentioned in the
exception clauses of this Section if, on the basis of its
"The pendency of a dispute arising from a wage determination pursuant to Article 124 of the Labor
distortion shall not in any way delay the applicability of Code such increases are necessary.
any increase in prescribed wage rates pursuant to the
provisions of law or Wage Order.
(b) The increase of twenty-five pesos (P25.00)
prescribed under this Section shall apply to all
"As used, herein, a wage distortion shall mean a workers and employees entitled to the same in private
situation where an increase in prescribed wage rates educational institutions as soon as they have
results in the elimination or severe contraction of increased or are granted authority to increase their
intentional quantitative differences in wage or salary tuition fees during school year 1989-1990. Otherwise,
rates between and among employee groups in an such increase shall be so applicable not later than the
establishment as to effectively obliterate the opening of the next school year beginning 1990.
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation. (c) Exempted from the provisions of this Act are
household or domestic helpers and persons
employed in the personal service of another, including
"All workers paid by result, including those who are family drivers.
paid on piecework, takay, pakyaw or task basis, shall
receive not less than the prescribed wage rates per
eight (8) hours work a day, or a proportion thereof for Retail/service establishments regularly employing
working less than eight (8) hours. not more than ten (10) workers may be exempted
from the applicability of this Act upon application with
and as determined by the appropriate Regional Board
"All recognized learnership and apprenticeship in accordance with the applicable rules and
agreements shall be considered automatically regulations issued by the Commission. Whenever an
modified insofar as their wage clauses are concerned application for exemption has been duly filed with the
to reflect the prescribed wage rates." appropriate Regional Board, action on any complaint
for alleged non-compliance with this Act shall be
"Art. 126. Prohibition Against Injunction. - No deferred pending resolution of the application for
preliminary or permanent injunction or temporary exemption by the appropriate Regional Board.
restraining order may be issued by any court, tribunal
or other entity against any proceedings before the In the event that applications for exemptions are
Commission or the Regional Boards." not granted, employees shall receive the appropriate
compensation due them as provided for by this Act
"Art. 127. Non-Diminution of Benefits. - No Wage plus interest of one percent (1%) per month
Order issued by any Regional Board shall provide for retroactive to the effectivity of this Act.
wage rates lower than the statutory minimum wage
rates prescribed by Congress." (d) If expressly provided for and agreed upon in the
collective bargaining agreements, all increases in the
Sec. 4. (a) Upon the effectivity of this Act, the daily basic wage rates granted by the employers three
statutory minimum wage rates of all workers and (3) months before the effectivity of this Act shall be
employees in the private sector, whether agricultural credited as compliance with the increases in the wage
or non-agricultural, shall be increased by twenty-five rates prescribed herein, provided that, where such
Duman / Labor I / Prof. Battad / Page 105
increases are less than the prescribed increases in amended, otherwise known as the Labor Code of the
the wage rates under this Act, the employer shall pay Philippines.
the difference. Such increases shall not include
anniversary wage increases, merit wage increases Sec. 8. Whenever applicable and upon request of a
and those resulting from the regularization or concerned worker or union, the bank shall issue a
promotion of employees. certification of the record of payment of wages of a
particular worker or workers for a particular payroll
Where the application of the increases in the wage period.
rate under this Section results in distortions as
defined under existing laws in the wage structure Sec. 9. The Department of Labor and Employment
within an establishment and gives rise to a dispute shall conduct inspections as often as possible within
therein, such dispute shall first be settled voluntarily its manpower constraint of the payroll and other
between the parties and in the event of a deadlock, financial records kept by the company or business to
the same shall be finally resolved through compulsory determine whether the workers are paid the
arbitration by the regional arbitration branch of the prescribed wage rates and other benefits granted by
National Labor Relations Commission (NLRC) having law or any Wage Order. In unionized companies, the
jurisdiction over the workplace. Department of Labor and Employment inspectors
shall always be accompanied by the president or any
It shall be mandatory for the NLRC to conduct responsible officer of the recognized bargaining unit
continuous hearings and decide any dispute arising of any interested union in the conduct of the
under this Section within twenty(20) calendar days inspection. In non-unionized companies,
from the time said dispute is formally submitted to it establishments or businesses, the inspection shall be
for arbitration. The pendency of a dispute arising from carried out in the presence of a worker representing
a wage distortion shall not in any way delay the the workers in the said company. The workers'
applicability of the increases in the wage rates representative shall have the right to submit his own
prescribed under this Section. findings to the Department of Labor and Employment
and to testify on the same if he cannot concur with the
Sec. 5. Within a period of four (4) years from the findings of the labor inspector.
effectivity of this Act and without prejudice to
collective bargaining negotiations or agreements or Sec. 10. The funds necessary to carry out the
other employment contracts between employers and provisions of this Act shall be taken from the
workers, new business enterprises that may be Compensation and Organizational Adjustment Fund,
established outside the NCR and export processing the Contingent Fund, and other savings under
zones whose operation or investments need initial Republic Act No. 6688, otherwise known as the
assistance as may be determined by the Department General Appropriations Act of 1989, or from any
of Labor and Employment in consultation with the unappropriated funds of the National Treasury:
Department of Trade and Industry or the Department Provided, That the funding requirements necessary to
of Agriculture, as the case may be shall be exempt implement this Act shall be included in the annual
from the application of this Act for not more than three General Appropriations Act for the succeeding years.
(3) years from the start of their operations: Provided,
That such new business enterprises established in Sec. 11. The National Wages Council created
Region III (Central Luzon) and Region IV (Southern under Executive Order No. 614 and the National
Tagalog) shall be exempt from such increases only for Productivity Commission created under Executive
two (2) years from the start of their operations, except Order No. 615 are hereby abolished. All properties,
those established in the Provinces of Palawan, records, equipment, buildings, facilities, and other
Oriental Mindoro, Occidental Mindoro, Marinduque, assets, liabilities and appropriations of and belonging
Romblon, Quezon and Aurora, which shall enjoy such to the abovementioned offices, as well as other
exemption for not more than three (3) years from the matters pending therein, shall be transferred to the
start of their operations. Commission. All personnel of the above abolished
offices shall continue to function in a holdover
Sec. 6. In the case of contracts for construction capacity and shall be preferentially considered for
projects and for security, janitorial and similar appointments to or placement in the Commission.
services, the prescribed increases in the wage rates
of the workers shall be borne by the principals or Any official or employee separated from the service
clients of the construction/service contractors and the as a result of the abolition of offices pursuant to this
contract shall be deemed amended accordingly. In the Act shall be entitled to appropriate separation pay and
event, however, that the principal or client fails to pay retirement and other benefits accruing to them under
the prescribed wage rates, the construction/service existing laws. In lieu thereof, at the option of the
contractor shall be jointly and severally liable with his employee, he shall be preferentially considered for
principal or client. employment in the government or in any of its
subdivisions, instrumentalities, or agencies, including
Sec. 7. Upon written petition of the majority of the government-owned or controlled corporations and
employees or workers concerned, all private their subsidiaries.
establishments, companies, businesses, and other
entities with twenty five (25) or more employees and Sec. 12. Any person, corporation, trust, firm,
located within one (1) kilometer radius to a partnership, association or entity which refuses or
commercial, savings or rural bank shall pay the fails to pay any of the prescribed increases or
wages and other benefits of their employees through adjustments in the wage rates made in accordance
any of said banks and within the period for payment of with this Act shall be punished by a fine not exceeding
wages fixed by Presidential Decree No. 442, as twenty-five thousand pesos (P25,000.00) and/or
Duman / Labor I / Prof. Battad / Page 106
imprisonment of not less than one (1) year nor more (e) To undertake studies, researches and surveys necessary
than two (2) years: Provided, That any person for the attainment of its functions and objectives, and to
convicted under this Act shall not be entitled to the collect and compile data and periodically disseminate
benefits provided for under the Probation Law. information on wages and productivity and other related
information, including, but not limited to, employment, cost-
of-living, labor costs, investments and returns;
If the violation is committed by a corporation, trust
or firm, partnership, association or any other entity,
(f) To review plans and programs of the Regional Tripartite
the penalty of imprisonment shall be imposed upon
Wages and Productivity Boards to determine whether these
the entity's responsible officers, including, but not are consistent with national development plans;
limited to, the president, vice president, chief
executive officer, general manager, managing director
or partner. (g) To exercise technical and administrative supervision over
the Regional Tripartite Wages and Productivity Boards;chan
robles virtual law library
Sec. 13. The Secretary of Labor and Employment
shall promulgate the necessary rules and regulations
(h) To call, from time to time, a national tripartite
to implement the provisions of this Act. conference of representatives of government, workers and
employers for the consideration of measures to promote
Sec. 14. All laws, orders, issuances, rules and wage rationalization and productivity; and
regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed, amended (i) To exercise such powers and functions as may be
or modified accordingly. In any provision or part of this necessary to implement this Act.
Act, or the application thereof to any person or
circumstance, is held invalid or unconstitutional, the
The Commission shall be composed of the Secretary of
remainder of this Act or the application of such Labor and Employment as ex-officio chairman, the Director-
provision or part thereof to other persons or General of the National Economic and Development
circumstances shall not be affected thereby. Authority (NEDA) as ex-officio vice-chairman, and two (2)
members each from workers’ and employers’ sectors who
Nothing in this Act shall be construed to reduce any shall be appointed by the President of the Philippines upon
existing wage rates, allowances and benefits of any recommendation of the Secretary of Labor and Employment
form under existing laws, decrees, issuances, to be made on the basis of the list of nominees submitted by
the workers’ and employers’ sectors, respectively, and who
executive orders, and/or under any contract or
shall serve for a term of five (5) years. The Executive
agreement between the workers and employers. Director of the Commission shall also be a member of the
Commission.
Sec. 15. This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or The Commission shall be assisted by a Secretariat to be
in at least two (2) national newspapers of general headed by an Executive Director and two (2) Deputy
circulation, whichever comes earlier. Directors, who shall be appointed by the President of the
Philippines, upon the recommendation of the Secretary of
Labor and Employment.
WAGE STUDIES, WAGE
AGREEMENTS The Executive Director shall have the same rank, salary,
benefits and other emoluments as that of a Department
AND WAGE DETERMINATION Assistant Secretary, while the Deputy Directors shall have
ART. 120. Creation of National Wages and Productivity the same rank, salary, benefits and other emoluments as
Commission. - There is hereby created a National Wages that of a Bureau Director. The members of the Commission
and Productivity Commission, hereinafter referred to as the representing labor and management shall have the same
Commission, which shall be attached to the Department of rank, emoluments, allowances and other benefits as those
Labor and Employment (DOLE) for policy and program prescribed by law for labor and management representatives
coordination. (As amended by Republic Act No. 6727, June in the Employees’ Compensation Commission. (As amended
9, 1989). by Republic Act No. 6727, June 9, 1989).

ART. 121. Powers and functions of the Commission. - The ART. 122. Creation of Regional Tripartite Wages and
Commission shall have the following powers and functions: Productivity Boards. - There is hereby created Regional
Tripartite Wages and Productivity Boards, hereinafter
(a) To act as the national consultative and advisory body to referred to as Regional Boards, in all regions, including
the President of the Philippines and Congress on matters autonomous regions as may be established by law. The
relating to wages, incomes and productivity; Commission shall determine the offices/headquarters of the
respective Regional Boards.
(b) To formulate policies and guidelines on wages, incomes
and productivity improvement at the enterprise, industry and The Regional Boards shall have the following powers and
national levels; functions in their respective territorial jurisdictions:

(c) To prescribe rules and guidelines for the determination of (a) To develop plans, programs and projects relative to
appropriate minimum wage and productivity measures at the wages, incomes and productivity improvement for their
regional, provincial, or industry levels; respective regions;

(d) To review regional wage levels set by the Regional (b) To determine and fix minimum wage rates applicable in
Tripartite Wages and Productivity Boards to determine if their regions, provinces or industries therein and to issue the
these are in accordance with prescribed guidelines and corresponding wage orders, subject to guidelines issued by
national development plans; the Commission;
Duman / Labor I / Prof. Battad / Page 107
(c) To undertake studies, researches, and surveys necessary ART. 124. Standards/Criteria for minimum wage fixing. - The
for the attainment of their functions, objectives and regional minimum wages to be established by the Regional
programs, and to collect and compile data on wages, Board shall be as nearly adequate as is economically feasible
incomes, productivity and other related information and to maintain the minimum standards of living necessary for
periodically disseminate the same; the health, efficiency and general well-being of the
employees within the framework of the national economic
and social development program. In the determination of
(d) To coordinate with the other Regional Boards as may be
such regional minimum wages, the Regional Board shall,
necessary to attain the policy and intention of this Code;
among other relevant factors, consider the following:

(e) To receive, process and act on applications for

exemption from prescribed wage rates as may be provided
(a) The demand for living wages;
by law or any Wage Order; and

(b) Wage adjustment vis-à-vis the consumer price index;

(f) To exercise such other powers and functions as may be
necessary to carry out their mandate under this Code.
(c) The cost of living and changes or increases therein;
Implementation of the plans, programs, and projects of the
Regional Boards referred to in the second paragraph, letter (d) The needs of workers and their families;
(a) of this Article, shall be through the respective regional
offices of the Department of Labor and Employment within
(e) The need to induce industries to invest in the
their territorial jurisdiction; Provided, however, That the
countryside;
Regional Boards shall have technical supervision over the
regional office of the Department of Labor and Employment
with respect to the implementation of said plans, programs (f) Improvements in standards of living;
and projects.
(g) The prevailing wage levels;
Each Regional Board shall be composed of the Regional
Director of the Department of Labor and Employment as (h) Fair return of the capital invested and capacity to pay of
chairman, the Regional Directors of the National Economic employers;
and Development Authority and the Department of Trade
and Industry as vice-chairmen and two (2) members each
from workers’ and employers’ sectors who shall be (i) Effects on employment generation and family income;
appointed by the President of the Philippines, upon the and
recommendation of the Secretary of Labor and Employment,
to be made on the basis of the list of nominees submitted by (j) The equitable distribution of income and wealth along the
the workers’ and employers’ sectors, respectively, and who imperatives of economic and social development.
shall serve for a term of five (5) years.

Each Regional Board to be headed by its chairman shall be

assisted by a Secretariat. (As amended by Republic Act No.
6727, June 9, 1989). The wages prescribed in accordance with the provisions of
this Title shall be the standard prevailing minimum wages in
every region. These wages shall include wages varying with
ART. 123. Wage Order. - Whenever conditions in the region industries, provinces or localities if in the judgment of the
so warrant, the Regional Board shall investigate and study Regional Board, conditions make such local differentiation
all pertinent facts; and based on the standards and criteria proper and necessary to effectuate the purpose of this Title.
herein prescribed, shall proceed to determine whether a
Wage Order should be issued. Any such Wage Order shall
take effect after fifteen (15) days from its complete Any person, company, corporation, partnership or any other
publication in at least one (1) newspaper of general entity engaged in business shall file and register annually
circulation in the region. with the appropriate Regional Board, Commission and the
National Statistics Office, an itemized listing of their labor
component, specifying the names of their workers and
In the performance of its wage-determining functions, the employees below the managerial level, including learners,
Regional Board shall conduct public hearings/consultations, apprentices and disabled/handicapped workers who were
giving notices to employees’ and employers’ groups, hired under the terms prescribed in the employment
provincial, city and municipal officials and other interested contracts, and their corresponding salaries and wages.
parties.

Where the application of any prescribed wage increase by

Any party aggrieved by the Wage Order issued by the virtue of a law or wage order issued by any Regional Board
Regional Board may appeal such order to the Commission results in distortions of the wage structure within an
within ten (10) calendar days from the publication of such establishment, the employer and the union shall negotiate to
order. It shall be mandatory for the Commission to decide correct the distortions. Any dispute arising from wage
such appeal within sixty (60) calendar days from the filing distortions shall be resolved through the grievance
thereof. procedure under their collective bargaining agreement and,
if it remains unresolved, through voluntary arbitration.
The filing of the appeal does not stay the order unless the Unless otherwise agreed by the parties in writing, such
person appealing such order shall file with the Commission, dispute shall be decided by the voluntary arbitrators within
an undertaking with a surety or sureties satisfactory to the ten (10) calendar days from the time said dispute was
Commission for the payment to the employees affected by referred to voluntary arbitration.
the order of the corresponding increase, in the event such
order is affirmed. (As amended by Republic Act No. 6727, In cases where there are no collective agreements or
June 9, 1989). recognized labor unions, the employers and workers shall
endeavor to correct such distortions. Any dispute arising
Duman / Labor I / Prof. Battad / Page 108
therefrom shall be settled through the National Conciliation SECTION 2. Wage studies. — The National Wages Council
and Mediation Board and, if it remains unresolved after ten shall conduct a continuing study of wage rates and other
(10) calendar days of conciliation, shall be referred to the economic conditions in all industries, agricultural and non-
appropriate branch of the National Labor Relations agricultural. The results of such study shall be periodically
Commission (NLRC). It shall be mandatory for the NLRC to disseminated to the government, labor and management
conduct continuous hearings and decide the dispute within sectors for their information and guidance.
twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
SECTION 3. Wages recommendation. — If after such study,
the Commission is of the opinion that a substantial number
The pendency of a dispute arising from a wage distortion of employees in any given industry or branch thereof are
shall not in any way delay the applicability of any increase in receiving wages, which although complying with the
prescribed wage rates pursuant to the provisions of law or minimum provided by law, are less than sufficient to
wage order. maintain them in health, efficiency and general well-being,
taking into account, among others, the peculiar
circumstances of the industry and its geographical location,
As used herein, a wage distortion shall mean a situation
the Commission shall, with the approval of the Secretary of
where an increase in prescribed wage rates results in the
Labor and Employment, proceed to determine whether a
elimination or severe contraction of intentional quantitative
wage recommendation should be issued.
differences in wage or salary rates between and among
employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure SECTION 4. Criteria for wage fixing. — (a) In addition to the
based on skills, length of service, or other logical bases of criteria established by Art. 123 of the Code for minimum
differentiation. wage fixing, the Commission shall consider, among other
factors, social services and benefits given free to workers
and the possible effect of a given increase in the minimum
All workers paid by result, including those who are paid on
wage on prices, money supply, employment, labor mobility
piecework, takay, pakyaw or task basis, shall receive not less
and productivity, labor organization efficacy, domestic and
than the prescribed wage rates per eight (8) hours of work a
foreign trade, and other relevant indicators of social and
day, or a proportion thereof for working less than eight (8)
economic development.
hours.

(b) Where a fair return to capital invested cannot be

All recognized learnership and apprenticeship agreements
reasonably determined, or where the industry concerned is
shall be considered automatically modified insofar as their
not operated for profit, its capacity to pay, taking into
wage clauses are concerned to reflect the prescribed wage
account all resources available to it, shall be considered.
rates. (As amended by Republic Act No. 6727, June 9,
1989).
SECTION 5. Quorum. — Three (3) members of the
Commission, including its Chairman, shall constitute a
ART. 125. Freedom to bargain. - No wage order shall be
quorum to transact the Commission's business.
construed to prevent workers in particular firms or
enterprises or industries from bargaining for higher wages
with their respective employers. (As amended by Republic SECTION 6. Commission actions, number of votes required.
Act No. 6727, June 9, 1989). — The votes of at least three (3) members of the
Commission shall be necessary to effect any decision or
recommendation it is authorized to issue under the Code and
ART. 126. Prohibition against injunction. – No preliminary or
this rule: Provided, That in the internal regulation and
permanent injunction or temporary restraining order may be
direction of the functions of the Commission's staff including
issued by any court, tribunal or other entity against any
the conduct of administrative processes and the
proceedings before the Commission or the Regional Boards.
maintenance of proper liaison and coordination with other
(As amended by Republic Act No. 6727, June 9, 1989).
organizations, the Chairman shall not need the consent of
the Commission or any member thereof.
ART. 127. Non-diminution of benefits. - No wage order
issued by any regional board shall provide for wage rates
SECTION 7. Outside assistance. — The Commission may call
lower than the statutory minimum wage rates prescribed by
upon the assistance and cooperation of any government
Congress. (As amended by Republic Act No. 6727, June 9,
agency or official, and may invite any private person or
1989).
organization to furnish information in connection with
industry studies and wage fixing hearings or in aid of the
RULE IX Commission's deliberations.
Wage Studies and Determination
SECTION 8. Schedule of hearings and notices. — The
SECTION 1. Definition of terms. — (a) "Industry" shall mean Commission shall prepare a schedule of hearings for the
any identifiable group of productive units or enterprises, reception of evidence necessary for wage fixing in an
whether operated for profit or not, engaged in similar or industry, including a list of witnesses that it will invite and
allied economic activities in which individuals are gainfully the date, time and place of the hearings. A notice thereof to
employed. all sectors of the industry shall be given in the most
expeditious manner. It may have prior consultations with
(b) A "branch" of an industry is a work, product or service labor and management leaders in the industry for the above
grouping thereof which can be considered a distinct division purpose.
for wage-fixing purposes.
SECTION 9. Unsolicited testimony. — Persons who offer to
(c) "Substantial number" shall mean such an appreciable testify before the Commission shall be heard only after the
number of employees in an industry as, in the Commission's Commission is satisfied, upon brief preliminary examination,
opinion, considering all relevant facts, may require action that they are in possession of facts relevant to the subject of
under Art. 121 of the Code to effectuate the purposes of inquiry. The Chairman, or in other cases, the person
wage determination, regardless of the proportion of such conducting the hearing, shall revise the schedule of hearings
employees to the total number of employees in the industry.
Duman / Labor I / Prof. Battad / Page 109
whenever necessary to achieve logical sequence of SECTION 20. Varying minimum wages. — To justify different
testimony. minimum wages for different localities, the economic and
other conditions found in a particular locality must not only
be more or less uniform therein but also different from those
SECTION 10. Compulsory processes. — Recourse to
prevailing in other localities.
compulsory processes under the Revised Administrative
Code to ensure the attendance of witnesses and/or the
production of relevant documentary evidence shall be used SECTION 21. Publication of Wage Order. — Only such
only on occasions of extreme importance and after other portions of a Wage Order shall be published as shall
means shall have failed, subject to the approval of the effectively give notice to all interested parties that such an
Secretary of Labor and Employment. Order has been issued, the industry affected, the minimum
wages prescribed and the date of its effectivity.
SECTION 11. Hearings; where, by whom conducted. —
Commission hearings may be conducted by the Commission SECTION 22. Effectivity. — A Wage Order shall become
en banc, or, when authorized by the Commission, by any effective after fifteen (15) days from its publication as
member or hearing officer designated by the Chairman. The provided in Article 124 of the Code.
hearings may be held wherever the industry or branches
thereof are situated; otherwise they shall be held in the
SECTION 23. Internal rules of the Commission. — Subject to
Greater Manila Area. The hearings shall be open to the
the approval of the Secretary of Labor and Employment, the
public.
National Wages Council may issue rules and regulations
governing its internal procedure.
SECTION 12. Hearings before single member or hearing
officer. — Hearings conducted by a duly authorized member
or hearing officer shall be considered as hearings before the
a. Rationale for Wage Rationalization, RA 6727,
Commission. The records of such hearings shall be
Sec. 2
submitted to the Commission as soon as they are completed,
indicating the time and place of the hearings and the
appearances thereat, together with a brief statement of the
findings and recommendations of the member or hearing Sec. 2. It is hereby declared the policy of the State to
officer concerned. rationalize the fixing of minimum wages and to promote
productivity-improvement and gain-sharing measures to
ensure a decent standard of living for the workers and their
SECTION 13. Testimony under oath. — The testimony of all
families; to guarantee the rights of labor to its just share in
witnesses shall be made under oath or affirmation and shall
the fruits of production; to enhance employment generation
be taken down and transcribed by a duly appointed
in the countryside through industry dispersal; and to allow
stenographic reporter.
business and industry reasonable returns on investment,
expansion and growth.
SECTION 14. Non-applicability of technical rules. — The
technical rules of evidence applied by the courts in
The State shall promote collective bargaining as the primary
proceedings at law or equity shall not strictly apply in any
mode of setting wages and other terms and conditions of
proceedings conducted before the Commission.
employment; and, whenever necessary, the minimum wage
rates shall be adjusted in a fair and equitable manner,
SECTION 15. Stipulation of fact. — Stipulations of fact may considering existing regional disparities in the cost of living
be admitted with respect to any matter at issue in the and other socio-economic factors and the national economic
proceedings. and social development plans.

SECTION 16. Documentary evidence. — Written evidence b. Agencies in Wage Fixing Machinery
submitted to the Commission or any member or hearing
officer shall be properly marked to facilitate identification. 1) National Wages and Productivity Commission, RA
6727, Sec. 3; Arts. 120, 121, 126
SECTION 17. Submission of industry-report. — Within sixty
(60) working days from the date of the first hearing, the
Commission shall submit to the Secretary of Labor and
Employment an "Industry Report" which shall relate in brief
the operations that led thereto, the basic findings of
economic facts about the industry and the recommendations
made on the basis thereof.

SECTION 18. Action by the Secretary of Labor and

Employment. — Within thirty (30) working days after the
submission of the "Industry Report," the Secretary of Labor
and Employment shall either reject or approve the
recommendation of the Commission in accordance with Art.
122 of the Code. If he approves the recommendation, he
shall issue a Wage Order adopting the same, subject to the
approval of the President of the Philippines, prescribing the 2) Regional Tripartite Wages and Productivity Board,
minimum wage or wages for the industry concerned. RA 6727, Sec. 3; Arts. 122, 126

SECTION 19. Wage Order. — The Wage Order shall specify  Nasipit Lumber Co. v. NLRC, 289
the industry or branch to which the minimum wages SCRA 667 (1998)
prescribed therein shall apply; Provided, That no definite
rates shall be prescribed for specific job titles in the industry.

Duman / Labor I / Prof. Battad / Page 110

c. Standards/Criteria for Minimum Wage Fixing, 3) Wage Distortion
RA 6727, Sec. 3; Art. 124
 Prubankers Association v.
d. Wage Order, Arts. 123, 124 Prudential Bank & Trust Co., 302 SCRA 74 (1999)

1) Methods of Fixing

a) Floor Wage method

b) Salary – Ceiling Method

 Employers Confederation of the

Phil. V. National Wage and Productivity Commission, 201
SCRA 759 (1991)

3. Wage Payment and Protection

a. Form of Payment, Art. 202; Civil Code, Art. 1705;

Rule VIII, Secs. 1, 2

ART. 202. Erroneous payment. - (a) If the System in good

faith pays income benefit to a dependent who is inferior in
right to another dependent or with whom another
dependent is entitled to share, such payments shall
discharge the System from liability, unless and until such
other dependent notifies the System of his claim prior to the
payments.

(b) In case of doubt as to the respective rights of rival

claimants, the System is hereby empowered to determine as
to whom payments should be made in accordance with such
regulations as the Commission may approve. If the money is
payable to a minor or incompetent, payment shall be made
by the System to such person or persons as it may consider
to be best qualified to take care and dispose of the minor’s
or incompetent’s property for his benefit.
2) Validity

 Cagayan Sugar Milling Co. v. NCC Art. 1705. The laborer's wages shall be paid in legal
Secretary, DOLE, 284 SCRA 150 (1998) currency.

SECTION 1. Manner of wage payment. — As a general rule,

wages shall be paid in legal tender and the use of tokens,
promissory notes, vouchers, coupons, or any other form

Duman / Labor I / Prof. Battad / Page 111

alleged to represent legal tender is absolutely prohibited subject to the following conditions, in the absence of a
even when expressly requested by the employee. collective bargaining agreement or arbitration award:

SECTION 2. Payment by check. — Payment of wages by (1) That payments are made at intervals not exceeding
bank checks, postal checks or money orders is allowed sixteen (16) days, in proportion to the amount of work
where such manner of wage payment is customary on the completed;
date of the effectivity of the Code, where it is so stipulated
in a collective agreement, or where all of the following
(2) That final settlement is made upon completion of the
conditions are met:
work.

(a) There is a bank or other facility for encashment within a

SECTION 3. Time of payment. — (a) Wages shall be paid
radius of one (1) kilometer from the workplace;
not less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days, unless payment
(b) The employer or any of his agents or representatives cannot be made with such regularity due to force majeure or
does not receive any pecuniary benefit directly or indirectly circumstances beyond the employer's control in which case
from the arrangement; the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
(c) The employees are given reasonable time during banking
hours to withdraw their wages from the bank which time (b) In case of payment of wages by results involving work
shall be considered as compensable hours worked if done which cannot be finished in two (2) weeks, payment shall be
during working hours; and made at intervals not exceeding sixteen days in proportion
to the amount of work completed. Final settlement shall be
made immediately upon completion of the work.
(d) The payment by check is with the written consent of the
employees concerned if there is no collective agreement
authorizing the payment of wages by bank checks. c. Place of Payment, Art. 104, Sec. 4

 Congson v. NLRC, 243 SCRA 260

(1995) SECTION 4. Place of payment. — As a general rule, the
place of payment shall be at or near the place of
undertaking. Payment in a place other than the work place
shall be permissible only under the following circumstances:

(a) When payment cannot be effected at or near the place

of work by reason of the deterioration of peace and order
conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering
payment thereat impossible;

(b) When the employer provides free transportation to the

employees back and forth; and

(c) Under any other analogous circumstances; Provided,

That the time spent by the employees in collecting their
wages shall be considered as compensable hours worked;

(d) No employer shall pay his employees in any bar, night or

day club, drinking establishment, massage clinic, dance hall,
or other similar places or in places where games are played
with stakes of money or things representing money except
in the case of persons employed in said places.

LC ART. 104. Place of payment. - Payment of wages shall be

made at or near the place of undertaking, except as
otherwise provided by such regulations as the Secretary of
Labor and Employment may prescribe under conditions to
ensure greater protection of wages.
b. Time of Payment, Art. 103, Sec. 3

See: Labor Advisory on Payment of Salaries Thru Automated

Teller Machines (ATM)
ART. 103. Time of payment. - Wages shall be paid at least
once every two (2) weeks or twice a month at intervals not
exceeding sixteen (16) days. If on account of force majeure
or circumstances beyond the employer’s control, payment of
wages on or within the time herein provided cannot be d. Person to Pay, Art. 105, Secs. 5, 6
made, the employer shall pay the wages immediately after
such force majeure or circumstances have ceased. No
employer shall make payment with less frequency than once
a month. SECTION 5. Direct payment of wages. — Payment of wages
shall be made direct to the employee entitled thereto except
in the following cases:
The payment of wages of employees engaged to perform a
task which cannot be completed in two (2) weeks shall be

Duman / Labor I / Prof. Battad / Page 112

(a) Where the employer is authorized in writing by the
employee to pay his wages to a member of his family; ART. 112. Non-interference in disposal of wages. - No
employer shall limit or otherwise interfere with the freedom
of any employee to dispose of his wages. He shall not in any
(b) Where payment to another person of any part of the
manner force, compel, or oblige his employees to purchase
employee's wages is authorized by existing law, including
merchandise, commodities or other property from any other
payments for the insurance premiums of the employee and
person, or otherwise make use of any store or services of
union dues where the right to check-off has been recognized
such employer or any other person.
by the employer in accordance with a collective agreement
or authorized in writing by the individual employees
concerned; or
SECTION 9. Labor-only contracting. — (a) Any person who
undertakes to supply workers to an employer shall be
(c) In case of death of the employee as provided in the
deemed to be engaged in labor-only contracting where such
succeeding Section.
person:

SECTION 6. Wages of deceased employee. — The payment

(1) Does not have substantial capital or investment in the
of the wages of a deceased employee shall be made to his
form of tools, equipment, machineries, work premises and
heirs without the necessity of intestate proceedings. When
other materials; and
the heirs are of age, they shall execute an affidavit attesting
to their relationship to the deceased and the fact that they
are his heirs to the exclusion of all other persons. In case (2) The workers recruited and placed by such person are
any of the heirs is a minor, such affidavit shall be executed performing activities which are directly related to the
in his behalf by his natural guardian or next of kin. Upon principal business or operations of the employer in which
presentation of the affidavit to the employer, he shall make workers are habitually employed.
payment to the heirs as representative of the Secretary of
Labor and Employment.
(b) Labor-only contracting as defined herein is hereby
prohibited and the person acting as contractor shall be
ART. 105. Direct payment of wages. - Wages shall be paid considered merely as an agent or intermediary of the
directly to the workers to whom they are due, except: employer who shall be responsible to the workers in the
same manner and extent as if the latter were directly
employed by him.
(a) In cases of force majeure rendering such payment
impossible or under other special circumstances to be
determined by the Secretary of Labor and Employment in (c) For cases not falling under this Rule, the Secretary of
appropriate regulations, in which case, the worker may be Labor and Employment shall determine through appropriate
paid through another person under written authority given orders whether or not the contracting out of labor is
by the worker for the purpose; or permissible in the light of the circumstances of each case
and after considering the operating needs of the employer
and the rights of the workers involved. In such case, he may
(b) Where the worker has died, in which case, the employer
prescribe conditions and restrictions to insure the protection
may pay the wages of the deceased worker to the heirs of
and welfare of the workers.
the latter without the necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and the fact b. Wage Deduction, Art. 113; Rule VIII, Sec. 10
that they are his heirs, to the exclusion of all other persons.
If any of the heirs is a minor, the affidavit shall be executed
on his behalf by his natural guardian or next-of-kin. The
ART. 113. Wage deduction. - No employer, in his own behalf
affidavit shall be presented to the employer who shall make
or in behalf of any person, shall make any deduction from
payment through the Secretary of Labor and Employment or
the wages of his employees, except:
his representative. The representative of the Secretary of
Labor and Employment shall act as referee in dividing the
amount paid among the heirs. The payment of wages under (a) In cases where the worker is insured with his consent by
this Article shall absolve the employer of any further liability the employer, and the deduction is to recompense the
with respect to the amount paid. employer for the amount paid by him as premium on the
insurance;
 Bermiso v. Escano, Inc., 105 Phil.
231 (1959) (b) For union dues, in cases where the right of the worker or
his union to check-off has been recognized by the employer
or authorized in writing by the individual worker concerned;
and

(c) In cases where the employer is authorized by law or

regulations issued by the Secretary of Labor and
Employment.

SECTION 10. Payment of wages in case of bankruptcy. —

Unpaid wages earned by the employees before the
declaration of bankruptcy or judicial liquidation of the
employer's business shall be given first preference and shall
4. Wage Prohibitions be paid in full before other creditors may establish any claim
to a share in the assets of the employer.
a. Wage Interference in Disposal of Wages, Art. 112;
Rule VIII, Sec. 9
 Apodaca v. NLRC, 172 SCRA 442
a. Wage Interference in Disposal of Wages, Art. (1989)
112; Rule VIII, Sec. 9
Duman / Labor I / Prof. Battad / Page 113
 e. Withholding of Wages, Art. 116; Civil Code,
Art. 1706

c. Requirement to make Deposits for Loss or

Damage, Art. Arts. 114, 115; Rule VIII, Sec. 11
ART. 116. Withholding of wages and kickbacks prohibited. -
It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce
him to give up any part of his wages by force, stealth,
intimidation, threat or by any other means whatsoever
ART. 114. Deposits for loss or damage. - No employer shall without the worker’s consent.
require his worker to make deposits from which deductions
shall be made for the reimbursement of loss of or damage
NCC Art. 1706. Withholding of the wages, except for a
to tools, materials, or equipment supplied by the employer,
debt due, shall not be made by the employer.
except when the employer is engaged in such trades,
occupations or business where the practice of making
deductions or requiring deposits is a recognized one, or is f. Deduction to Ensure Employment, Art. 117
necessary or desirable as determined by the Secretary of
Labor and Employment in appropriate rules and
regulations. ART. 117. Deduction to ensure employment. - It shall be
unlawful to make any deduction from the wages of any
ART. 115. Limitations. - No deduction from the deposits of employee for the benefit of the employer or his
an employee for the actual amount of the loss or damage representative or intermediary as consideration of a promise
shall be made unless the employee has been heard of employment or retention in employment.
thereon, and his
g. Retaliatory Measures, Art. 118
SECTION 11. Attorney's fees. — Attorney's fees in any
judicial or administrative proceedings for the recovery of ART. 118. Retaliatory measures. - It shall be unlawful for an
wages shall not exceed 10 percent of the amount awarded. employer to refuse to pay or reduce the wages and benefits,
The fees may be deducted from the total amount due the discharge or in any manner discriminate against any
winning party responsibility has been clearly shown. employee who has filed any complaint or instituted any
proceeding under this Title or has testified or is about to
testify in such proceedings.
 Dentech Manufacturing Corp.
NLRC, 172 SCRA 588 (1989)
h. False Reporting, Art. 119; Rule X, Sec. 13

ART. 119. False reporting. - It shall be unlawful for any

person to make any statement, report, or record filed or
kept pursuant to the provisions of this Code knowing such
statement, report or record to be false in any material
respect.

SECTION 13. False reporting. — It shall be unlawful for any

employer or any person to make any false statement, report
or record on matters required to be kept or maintained
 Five J Taxi v. NLRC, 235 SCRA 556 pursuant to the provisions of this Rule.
(1994)

i. Keeping of Employee’s Records in a Place

other than the Workplace

Duman / Labor I / Prof. Battad / Page 114

 5. Work Preference in the Event of Bankruptcy, Art.
 South Motorists Enterprises v. 110; Book III, Rule VIII, Sec. 7; civil Code, Arts. 1207, 2241
Tosoc, 181 SCRA 386 (1990) (6), 2242 (3), 2244 (2)

LC ART. 110. Worker preference in case of bankruptcy . - In

the event of bankruptcy or liquidation of an employer’s
business, his workers shall enjoy first preference as regards
their wages and other monetary claims, any provisions of
law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the
government and other creditors may be paid. (As amended
by Section 1, Republic Act No. 6715, March 21, 1989).

IRR SECTION 7. Civil liability of employer and contractors. —

Every employer or indirect employer shall be jointly and
severally liable with his contractor or sub-contractor for the
unpaid wages of the employees of the latter. Such employer
or indirect employer may require the contractor or sub-
contractor to furnish a bond equal to the cost of labor under
contract on condition that the bond will answer for the
wages due the employees should the contractor or
subcontractor, as the case may be, fail to pay the same.

NCC Art. 2241. With reference to specific movable property

of the debtor, the following claims or liens shall be
preferred:

j. Garnishment/Execution, Civil Code, Art. 1708

(6) Claims for laborers' wages, on the goods
manufactured or the work done; xxx

NCC Art. 1708. The laborer's wages shall not be subject to

execution or attachment, except for debts incurred for food, Art. 2242. With reference to specific immovable property
shelter, clothing and medical attendance. and real rights of the debtor, the following claims,
mortgages and liens shall be preferred, and shall constitute
an encumbrance on the immovable or real right:
 GAA v. Court of Appeals, 140 SCRA
304 (1985)
(3) Claims of laborers, masons, mechanics and other
workmen, as well as of architects, engineers and
contractors, engaged in the construction, reconstruction or
repair of buildings, canals or other works, upon said
buildings, canals or other works; xxx

Art. 2244. With reference to other property, real and

personal, of the debtor, the following claims or credits shall
be preferred in the order named:

(2) Credits for services rendered the insolvent by

employees, laborers, or household helpers for one year
preceding the commencement of the proceedings in
insolvency; xxx

Art. 1207. The concurrence of two or more creditors or of

two or more debtors in one and the same obligation does
not imply that each one of the former has a right to
demand, or that each one of the latter is bound to render,
entire compliance with the prestation. There is a solidary
liability only when the obligation expressly so states, or
 Special Steel Corp. v. Villareal, 434 when the law or the nature of the obligation requires
SCRA 19 (2004) solidarity. (1137a)

Duman / Labor I / Prof. Battad / Page 115

 Republic v. Peralta, 150 SCRA 37 (1987) law, wage order or rules and regulations issued pursuant
thereto.

(b) Notwithstanding the provisions of Articles 129 and 217 of

this Code to the contrary, and in cases where the
relationship of employer-employee still exists, the Secretary
of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance
orders to give effect to the labor standards provisions of this
Code and other labor legislation based on the findings of
labor employment and enforcement officers or industrial
safety engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall issue
writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where the
employer contests the findings of the labor employment and
enforcement officer and raises issues supported by
documentary proofs which were not considered in the
course of inspection. (As amended by Republic Act No. 7730,
June 2, 1994).

An order issued by the duly authorized representative of the

Secretary of Labor and Employment under this Article may
be appealed to the latter. In case said order involves a
monetary award, an appeal by the employer may be
perfected only upon the posting of a cash or surety bond
issued by a reputable bonding company duly accredited by
the Secretary of Labor and Employment in the amount
 Manila Banking Corp. v. NLRC, 279 SCRA equivalent to the monetary award in the order appealed
602, 621-642 (1997) from. (As amended by Republic Act No. 7730, June 2, 1994).

(c) The Secretary of Labor and Employment may likewise

order stoppage of work or suspension of operations of any
unit or department of an establishment when non-
compliance with the law or implementing rules and
regulations poses grave and imminent danger to the health
and safety of workers in the workplace. Within twenty-four
hours, a hearing shall be conducted to determine whether
an order for the stoppage of work or suspension of
operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the
employees concerned their salaries or wages during the
period of such stoppage of work or suspension of operation.

(d) It shall be unlawful for any person or entity to obstruct,

impede, delay or otherwise render ineffective the orders of
the Secretary of Labor and Employment or his duly
authorized representatives issued pursuant to the authority
granted under this Article, and no inferior court or entity
shall issue temporary or permanent injunction or restraining
order or otherwise assume jurisdiction over any case
involving the enforcement orders issued in accordance with
this Article.

(e) Any government employee found guilty of violation of, or

abuse of authority, under this Article shall, after appropriate
administrative investigation, be subject to summary
dismissal from the service.

(f) The Secretary of Labor and Employment may, by

6. Wage Recovery/Jurisdiction, arts. 128, 129, 217, appropriate regulations, require employers to keep and
111; Book III, Rule X, Secs. 1-5 maintain such employment records as may be necessary in
aid of his visitorial and enforcement powers under this Code.

ART. 128. Visitorial and enforcement power. - (a) The ART. 129. Recovery of wages, simple money claims and
Secretary of Labor and Employment or his duly authorized other benefits. - Upon complaint of any interested party, the
representatives, including labor regulation officers, shall Regional Director of the Department of Labor and
have access to employer’s records and premises at any time Employment or any of the duly authorized hearing officers of
of the day or night whenever work is being undertaken the Department is empowered, through summary
therein, and the right to copy therefrom, to question any proceeding and after due notice, to hear and decide any
employee and investigate any fact, condition or matter matter involving the recovery of wages and other monetary
which may be necessary to determine violations or which claims and benefits, including legal interest, owing to an
may aid in the enforcement of this Code and of any labor employee or person employed in domestic or household
service or househelper under this Code, arising from
Duman / Labor I / Prof. Battad / Page 116
employer-employee relations: Provided, That such complaint (c) Cases arising from the interpretation or implementation
does not include a claim for reinstatement: Provided further, of collective bargaining agreements and those arising from
That the aggregate money claims of each employee or the interpretation or enforcement of company personnel
househelper does not exceed Five thousand pesos policies shall be disposed of by the Labor Arbiter by referring
(P5,000.00). The Regional Director or hearing officer shall the same to the grievance machinery and voluntary
decide or resolve the complaint within thirty (30) calendar arbitration as may be provided in said agreements. (As
days from the date of the filing of the same. Any sum thus amended by Section 9, Republic Act No. 6715, March 21,
recovered on behalf of any employee or househelper 1989).
pursuant to this Article shall be held in a special deposit
account by, and shall be paid on order of, the Secretary of ART. 111. Attorney’s fees. - (a) In cases of unlawful
Labor and Employment or the Regional Director directly to withholding of wages, the culpable party may be assessed
the employee or househelper concerned. Any such sum not attorney’s fees equivalent to ten percent of the amount of
paid to the employee or househelper because he cannot be wages recovered.
located after diligent and reasonable effort to locate him
within a period of three (3) years, shall be held as a special
fund of the Department of Labor and Employment to be
SECTION 1. Visitorial power. — The Secretary of Labor and
used exclusively for the amelioration and benefit of workers.
Employment or his duly authorized representatives, including
Labor Regulations Officers or Industrial Safety Engineers,
Any decision or resolution of the Regional Director or shall have access to employer's records and premises at any
hearing officer pursuant to this provision may be appealed time of the day or night whenever work is being undertaken
on the same grounds provided in Article 223 of this Code, therein, and right to copy therefrom, to question any
within five (5) calendar days from receipt of a copy of said employee, and to investigate any fact, condition or matter
decision or resolution, to the National Labor Relations relevant to the enforcement of any provision of the Code
Commission which shall resolve the appeal within ten (10) and of any labor law, wage order or rules and regulations
calendar days from the submission of the last pleading issued pursuant thereto.
required or allowed under its rules.chan robles virtual law
library
SECTION 2. Enforcement power. — (a) The Regional
Director in cases where employer relations shall exist, shall
The Secretary of Labor and Employment or his duly have the power to order and administer, after due notice
authorized representative may supervise the payment of and hearing, compliance with the labor standards provisions
unpaid wages and other monetary claims and benefits, of the Code and other labor legislations based on the
including legal interest, found owing to any employee or findings of the Labor Regulation Officers or Industrial Safety
househelper under this Code. (As amended by Section 2, Engineers (Labor Standard and Welfare Officer) and made in
Republic Act No. 6715, March 21, 1989). the course of inspection, and to issue writs of execution to
the appropriate authority of the enforcement of his order. In
line with the provisions of Article 128 in relation to Articles
ART. 217. Jurisdiction of the Labor Arbiters and the
289 and 290 of the Labor Code as amended in cases,
Commission. - (a) Except as otherwise provided under this
however, where the employer contests the findings of the
Code, the Labor Arbiters shall have original and exclusive
Labor Standards and Welfare Officers and raises issues
jurisdiction to hear and decide, within thirty (30) calendar
which cannot be resolved without considering evidentiary
days after the submission of the case by the parties for
matters that are not verifiable in the normal course of
decision without extension, even in the absence of
inspection, the Regional Director concerned shall indorse the
stenographic notes, the following cases involving all workers,
case to the appropriate arbitration branch of the National
whether agricultural or non-agricultural:
Labor Relations Commission for adjudication.

1. Unfair labor practice cases;

(b) The Regional Director shall give the employer fifteen
(15) days within which to comply with his order before
2. Termination disputes; issuing a writ of execution. Copy of such order or writ of
execution shall immediately be furnished the Secretary of
3. If accompanied with a claim for reinstatement, those Labor and Employment.
cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of SECTION 3. Enforcement power on health and safety of
employment; workers. — (a) The Regional Director may likewise order
stoppage of work or suspension of operations of any unit or
4. Claims for actual, moral, exemplary and other forms of department of an establishment when non-compliance with
damages arising from the employer-employee relations; the law, safety order or implementing rules and regulations
poses grave and imminent danger to the health and safety
of workers in the workplace.
5. Cases arising from any violation of Article 264 of this
Code, including questions involving the legality of strikes and
lockouts; and (b) Within 24 hours from issuance of the order of stoppage
or suspension, a hearing shall be conducted to determine
whether the order for the stoppage of work or suspension of
6. Except claims for Employees Compensation, Social operation shall be lifted or not. The proceedings shall be
Security, Medicare and maternity benefits, all other claims terminated within seventy-two (72) hours and a copy of
arising from employer-employee relations, including those of such order or resolution shall be immediately furnished the
persons in domestic or household service, involving an Secretary of Labor and Employment. In case the violation is
amount exceeding five thousand pesos (P5,000.00) attributable to the fault of the employer, he shall pay the
regardless of whether accompanied with a claim for employees concerned their salaries or wages during the
reinstatement. period of such stoppage of work or suspension of operation.

(b) The Commission shall have exclusive appellate jurisdiction

SECTION 4. Power to review. — (a) The Secretary of Labor
and Employment, at his own initiative or upon request of the
over all cases decided by Labor Arbiters.
employer and/or employee, may review the order of the
Regional Director. The order of the Regional Director shall
Duman / Labor I / Prof. Battad / Page 117
be immediately final and executory unless stayed by the
Secretary of Labor and Employment upon posting by the
employer of a reasonable cash or surety bond as fixed by
the Regional Director. H. Thirteenth Month Pay

1. History of the Law

(b) In aid of his power of review, the Secretary of Labor and
Employment may direct the Bureau of Working Conditions to
 Dentech Mfg. Corp. v. NLRC, supra
evaluate the findings or orders of the Regional Director. The
decision of the Secretary of Labor and Employment shall be
2. Coverage
final and executory.
 Archilles Manufacturing Corp. v, NLRC,
SECTION 5. Interference and injunctions prohibited. — It 244 SCRA 750 (1995)
shall be unlawful for any person or entity to obstruct,
impede, delay or otherwise render ineffective the exercise of
the enforcement power of the Secretary of Labor and
Employment, Regional Director or their duly authorized
representatives pursuant to the authority granted by the
Code and its implementing rules and regulations, and no
inferior court or entity shall issue temporary or permanent
injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement orders
issued in accordance with the Code. In addition to the
penalties provided for by the Labor Code, any government
employees found guilty of violation or abuse of authority,
shall be subject to the provisions of Presidential Decree No.
6.

 Cirineo Bowling Plaza v. Gerry Sensing,

supra

 Ultra Villa Food Haus v. Geniston, 309

SCRA 17 (1999)

 San Miguel Corporation v. Court of

Appeals, supra
 Guico v. Sec. of Labor, 298 SCRA 667
(1998)

Duman / Labor I / Prof. Battad / Page 118

 c. 14th Month Pay
3. Rationale, PD 851, Whereas Clauses and
LImitations  Kamaya Port Hotel v. NLRC, 177
SCRA 160 (1989)
WHEREAS, it is necessary to further protect the level of real
wages from the ravage of worldwide inflation;

WHEREAS, there has been no increase in the legal minimum

wage rates since 1970;

WHEREAS, the Christmas season is an opportune time for

society to show its concern for the plight of the working
masses so they may properly celebrate Christmas and New
Year.

Section 1. All employers are hereby required to pay all their

employees receiving a basic salary of not more than P1,000
a month, regardless of the nature of their employment, a
13th-month pay not later than December 24 of every year.

Sec. 2. Employers already paying their employees a 13th-

month pay or its equivalent are not covered by this Decree.

4. Amount and Date of Payment

a. Basic Wage/Commissions

 Boie Takeda v. Dela Serna, Supra

 Iran v. NLRC, supra

 Honda Philippines Inc. v. Samahan d. Diminution

ng Malayang Manggagawa sa Honda, 460 SCRA 186 (2005)
 Davao Fruits Corp. v. Associated
Labor Unions, supra

I. Bonus

1. Nature

 Philippine Duplicators Inc. v. NLRC,

241 SCRA 380 (1995)

b. Substitute Payment

 Framanlis Farms, Inc. v. NLRC, 171

SCRA 87 (1989)

Duman / Labor I / Prof. Battad / Page 119

 2. Definition; When Demandable J. Working Conditions for Special Group of
Workers
 Marcos v. NLRC, 248 SCRA 146
(1995) 1. Women, Arts. 130-138; Omnibus Rules, Book III,
Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 & XIII, Sec.
14; Convention on the Elimination of All Forms of
Discrimination Against Women (CEDAW), Arts. 11-13; ILO
Convention Nos. 100 & 111

Chapter I
EMPLOYMENT OF WOMEN
ART. 130. Nightwork prohibition. - No woman, regardless of
age, shall be employed or permitted or suffered to work,
with or without compensation:

(a) In any industrial undertaking or branch thereof between

ten o’clock at night and six o’clock in the morning of the
following day; or

(b) In any commercial or non-industrial undertaking or

branch thereof, other than agricultural, between midnight
and six o’clock in the morning of the following day; or

(c) In any agricultural undertaking at nighttime unless she is

given a period of rest of not less than nine (9) consecutive
hours.

ART. 131. Exceptions. - The prohibitions prescribed by the

 Business Information Systems and preceding Article shall not apply in any of the following
Services, Inc. v. NLRC, 221 SCRA 9 (1993)Philippine cases:
Appliance Corp. v. Court of Appeals, 430 SCRA 525 (2004)
(a) In cases of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic
or other disasters or calamity, to prevent loss of life or
property, or in cases of force majeure or imminent danger to
public safety;

(b) In case of urgent work to be performed on machineries,

equipment or installation, to avoid serious loss which the
employer would otherwise suffer;

(c) Where the work is necessary to prevent serious loss of

perishable goods;

(d) Where the woman employee holds a responsible position

of managerial or technical nature, or where the woman
employee has been engaged to provide health and welfare
services;

(e) Where the nature of the work requires the manual skill
and dexterity of women workers and the same cannot be
performed with equal efficiency by male workers;

(f) Where the women employees are immediate members of

the family operating the establishment or undertaking; and
 American Wire and Cable Daily
Rated Employees Union v. American Wire and Cable Co., (g) Under other analogous cases exempted by the Secretary
Inc., 457 SCRA 684 (2005) of Labor and Employment in appropriate regulations.

ART. 132. Facilities for women. - The Secretary of Labor and

Employment shall establish standards that will ensure the
safety and health of women employees. In appropriate
cases, he shall, by regulations, require any employer to:

(a) Provide seats proper for women and permit them to use
such seats when they are free from work and during
Duman / Labor I / Prof. Battad / Page 120
working hours, provided they can perform their duties in this Provided, That the institution of any criminal action under
position without detriment to efficiency; this provision shall not bar the aggrieved employee from
filing an entirely separate and distinct action for money
claims, which may include claims for damages and other
(b) To establish separate toilet rooms and lavatories for men
affirmative reliefs. The actions hereby authorized shall
and women and provide at least a dressing room for
proceed independently of each other. (As amended by
women;
Republic Act No. 6725, May 12, 1989).

(c) To establish a nursery in a workplace for the benefit of

ART. 136. Stipulation against marriage. - It shall be unlawful
the women employees therein; and
for an employer to require as a condition of employment or
continuation of employment that a woman employee shall
(d) To determine appropriate minimum age and other not get married, or to stipulate expressly or tacitly that upon
standards for retirement or termination in special getting married, a woman employee shall be deemed
occupations such as those of flight attendants and the like. resigned or separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman employee
ART. 133. Maternity leave benefits. - (a) Every employer merely by reason of her marriage.
shall grant to any pregnant woman employee who has
rendered an aggregate service of at least six (6) months for ART. 137. Prohibited acts. - (a) It shall be unlawful for any
the last twelve (12) months, maternity leave of at least two employer:
(2) weeks prior to the expected date of delivery and another
four (4) weeks after normal delivery or abortion with full pay
(1) To deny any woman employee the benefits provided for
based on her regular or average weekly wages. The
in this Chapter or to discharge any woman employed by him
employer may require from any woman employee applying
for the purpose of preventing her from enjoying any of the
for maternity leave the production of a medical certificate
benefits provided under this Code.
stating that delivery will probably take place within two
weeks.
(2) To discharge such woman on account of her pregnancy,
or while on leave or in confinement due to her pregnancy;
(b) The maternity leave shall be extended without pay on
account of illness medically certified to arise out of the
pregnancy, delivery, abortion or miscarriage, which renders (3) To discharge or refuse the admission of such woman
the woman unfit for work, unless she has earned unused upon returning to her work for fear that she may again be
leave credits from which such extended leave may be pregnant.
charged.
ART. 138. Classification of certain women workers . - Any
(c) The maternity leave provided in this Article shall be paid woman who is permitted or suffered to work, with or
by the employer only for the first four (4) deliveries by a without compensation, in any night club, cocktail lounge,
woman employee after the effectivity of this Code. massage clinic, bar or similar establishments under the
effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of
ART. 134. Family planning services; incentives for family
Labor and Employment, shall be considered as an employee
planning. - (a) Establishments which are required by law to
of such establishment for purposes of labor and social
maintain a clinic or infirmary shall provide free family
legislation.
planning services to their employees which shall include, but
not be limited to, the application or use of contraceptive pills
and intrauterine devices. RULE XII
Employment of Women and Minors
(b) In coordination with other agencies of the government
engaged in the promotion of family planning, the SECTION 1. General statement on coverage. — This Rule
Department of Labor and Employment shall develop and shall apply to all employers, whether operating for profit or
prescribe incentive bonus schemes to encourage family not, including educational, religious and charitable
planning among female workers in any establishment or institutions, except to the Government and to government-
enterprise. owned or controlled corporations and to employers of
household helpers and persons in their personal service
insofar as such workers are concerned.
ART. 135. Discrimination prohibited. - It shall be unlawful for
any employer to discriminate against any woman employee
with respect to terms and conditions of employment solely Constitution Art. II, Section 13. The State
on account of her sex. recognizes the vital role of the youth in nation-building
and shall promote and protect their physical, moral,
The following are acts of discrimination: spiritual, intellectual, and social well-being. It shall
inculcate in the youth patriotism and nationalism, and
encourage their involvement in public and civic affairs.
(a) Payment of a lesser compensation, including wage,
salary or other form of remuneration and fringe benefits, to
a female employees as against a male employee, for work of ARTICLE XIII – WOMEN
equal value; and Section 14. The State shall protect working women
by providing safe and healthful working conditions,
taking into account their maternal functions, and such
(b) Favoring a male employee over a female employee with
facilities and opportunities that will enhance their
respect to promotion, training opportunities, study and
scholarship grants solely on account of their sexes.
welfare and enable them to realize their full potential
in the service of the nation.
Criminal liability for the willful commission of any unlawful
act as provided in this Article or any violation of the rules
and regulations issued pursuant to Section 2 hereof shall be
penalized as provided in Articles 288 and 289 of this Code:
Duman / Labor I / Prof. Battad / Page 121
 1. States Parties shall take all appropriate measures
to eliminate discrimination against women in the field
of health care in order to ensure, on a basis of
CEDAW equality of men and women, access to health care
Article 11 services, including those related to family planning.
1. States Parties shall take all appropriate measures
to eliminate discrimination against women in the field 2. Notwithstanding the provisions of paragraph I of
of employment in order to ensure, on a basis of this article, States Parties shall ensure to women
equality of men and women, the same rights, in appropriate services in connection with pregnancy,
particular: confinement and the post-natal period, granting free
(a) The right to work as an inalienable right of all services where necessary, as well as adequate
human beings; nutrition during pregnancy and lactation.

(b) The right to the same employment opportunities, Article 13

including the application of the same criteria for States Parties shall take all appropriate measures to
selection in matters of employment; eliminate discrimination against women in other areas
of economic and social life in order to ensure, on a
(c) The right to free choice of profession and basis of equality of men and women, the same rights,
employment, the right to promotion, job security and in particular:
all benefits and conditions of service and the right to (a) The right to family benefits;
receive vocational training and retraining, including
apprenticeships, advanced vocational training and (b) The right to bank loans, mortgages and other
recurrent training; forms of financial credit;

(d) The right to equal remuneration, including (c) The right to participate in recreational activities,
benefits, and to equal treatment in respect of work of sports and all aspects of cultural life.
equal value, as well as equality of treatment in the
evaluation of the quality of work;
C100 Equal Remuneration Convention, 1951
(e) The right to social security, particularly in cases of
retirement, unemployment, sickness, invalidity and old
age and other incapacity to work, as well as the right Convention concerning Equal Remuneration for Men and
Women Workers for Work of Equal Value (Note: Date of
to paid leave;
coming into force: 23:05:1953.)
Convention:C100
(f) The right to protection of health and to safety in Place:Geneva
working conditions, including the safeguarding of the Session of the Conference:34
function of reproduction. Date of adoption:29:06:1951
Subject classification: Equal Remuneration
Subject classification: Women
2. In order to prevent discrimination against women Subject: Equality of Opportunity and Treatment
on the grounds of marriage or maternity and to ensure
their effective right to work, States Parties shall take
appropriate measures:
(a) To prohibit, subject to the imposition of sanctions, The General Conference of the International Labour
dismissal on the grounds of pregnancy or of maternity Organisation,
leave and discrimination in dismissals on the basis of
marital status; Having been convened at Geneva by the Governing Body of
the International Labour Office, and having met in its Thirty-
(b) To introduce maternity leave with pay or with fourth Session on 6 June 1951, and
comparable social benefits without loss of former
employment, seniority or social allowances; Having decided upon the adoption of certain proposals with
regard to the principle of equal remuneration for men and
women workers for work of equal value, which is the
(c) To encourage the provision of the necessary seventh item on the agenda of the session, and
supporting social services to enable parents to
combine family obligations with work responsibilities
and participation in public life, in particular through Having determined that these proposals shall take the form
of an international Convention,
promoting the establishment and development of a
network of child-care facilities;
adopts this twenty-ninth day of June of the year one
thousand nine hundred and fifty-one the following
(d) To provide special protection to women during Convention, which may be cited as the Equal Remuneration
pregnancy in types of work proved to be harmful to Convention, 1951:
them.
Article 1
3. Protective legislation relating to matters covered in
this article shall be reviewed periodically in the light of
For the purpose of this Convention--
scientific and technological knowledge and shall be
revised, repealed or extended as necessary.
(a) the term remuneration includes the ordinary, basic or
Article 12 minimum wage or salary and any additional emoluments

Duman / Labor I / Prof. Battad / Page 122

whatsoever payable directly or indirectly, whether in cash or 2. It shall come into force twelve months after the date on
in kind, by the employer to the worker and arising out of the which the ratifications of two Members have been registered
worker's employment; with the Director-General.

(b) the term equal remuneration for men and women 3. Thereafter, this Convention shall come into force for any
workers for work of equal value refers to rates of Member twelve months after the date on which its
remuneration established without discrimination based on ratification has been registered.
sex.
Article 7
Article 2
1. Declarations communicated to the Director-General of the
1. Each Member shall, by means appropriate to the methods International Labour Office in accordance with paragraph 2
in operation for determining rates of remuneration, promote of Article 35 of the Constitution of the International Labour
and, in so far as is consistent with such methods, ensure the Organisation shall indicate --
application to all workers of the principle of equal
remuneration for men and women workers for work of equal
a) the territories in respect of which the Member concerned
value.
undertakes that the provisions of the Convention shall be
applied without modification;
2. This principle may be applied by means of--
b) the territories in respect of which it undertakes that the
(a) national laws or regulations; provisions of the Convention shall be applied subject to
modifications, together with details of the said modifications;
(b) legally established or recognised machinery for wage
determination; c) the territories in respect of which the Convention is
inapplicable and in such cases the grounds on which it is
inapplicable;
(c) collective agreements between employers and workers;
or
d) the territories in respect of which it reserves its decision
pending further consideration of the position.
(d) a combination of these various means.

2. The undertakings referred to in subparagraphs (a) and (b)

Article 3
of paragraph 1 of this Article shall be deemed to be an
integral part of the ratification and shall have the force of
1. Where such action will assist in giving effect to the ratification.
provisions of this Convention measures shall be taken to
promote objective appraisal of jobs on the basis of the work
3. Any Member may at any time by a subsequent declaration
to be performed.
cancel in whole or in part any reservation made in its original
declaration in virtue of subparagraph (b), (c) or (d) of
2. The methods to be followed in this appraisal may be paragraph 1 of this Article.
decided upon by the authorities responsible for the
determination of rates of remuneration, or, where such rates
4. Any Member may, at any time at which the Convention is
are determined by collective agreements, by the partíes
subject to denunciation in accordance with the provisions of
thereto.
Article 9, communicate to the Director-General a declaration
modifying in any other respect the terms of any former
3. Differential rates between workers which correspond, declaration and stating the present position in respect of
without regard to sex, to differences, as determined by such such territories as it may specify.
objective appraisal, in the work to be performed shall not be
considered as being contrary to the principle of equal
Article 8
remuneration for men and women workers for work of equal
value.
1. Declarations communicated to the Director-General of the
International Labour Office in accordance with paragraph 4
Article 4
or 5 of Article 35 of the Constitution of the International
Labour Organisation shall indicate whether the provisions of
Each Member shall co-operate as appropriate with the the Convention will be applied in the territory concerned
employers' and workers' organisations concerned for the without modification or subject to modifications; when the
purpose of giving effect to the provisions of this Convention. declaration indicates that the provisions of the Convention
will be applied subject to modifications, it shall give details
Article 5 of the said modifications.

The formal ratifications of this Convention shall be 2. The Member, Members or international authority
communicated to the Director-General of the International concerned may at any time by a subsequent declaration
Labour Office for registration. renounce in whole or in part the right to have recourse to
any modification indicated in any former declaration.

Article 6
3. The Member, Members or international authority
concerned may, at any time at which this Convention is
1. This Convention shall be binding only upon those subject to denunciation in accordance with the provisions of
Members of the International Labour Organisation whose Article 9, communicate to the Director-General a declaration
ratifications have been registered with the Director-General. modifying in any other respect the terms of any former
declaration and stating the present position in respect of the
application of the Convention.
Duman / Labor I / Prof. Battad / Page 123
Article 9

1. A Member which has ratified this Convention may Article 14

denounce it after the expiration of ten years from the date
on which the Convention first comes into force, by an act
The English and French versions of the text of this
communicated to the Director-General of the International
Convention are equally authoritative.
Labour Office for registration. Such denunciation shall not
take effect until one year after the date on which it is
registered. C111 Discrimination (Employment and Occupation)
Convention, 1958
2. Each Member which has ratified this Convention and
which does not, within the year following the expiration of Convention concerning Discrimination in Respect of
the period of ten years mentioned in the preceding Employment and Occupation (Note: Date of coming into
paragraph, exercise the right of denunciation provided for in force: 15:06:1960.)
this Article, will be bound for another period of ten years Convention:C111
and, thereafter, may denounce this Convention at the Place:Geneva
expiration of each period of ten years under the terms Session of the Conference:42
provided for in this Article. Date of adoption:25:06:1958
Subject classification: Non-discrimination (Employment and
Occupation)
Article 10
Subject classification: Women
Subject: Equality of Opportunity and Treatment
1. The Director-General of the International Labour Office
shall notify all Members of the International Labour
Organisation of the registration of all ratifications,
declarations and denunciations communicated to him by the The General Conference of the International Labour
Members of the Organisation. Organisation,

2. When notifying the Members of the Organisation of the Having been convened at Geneva by the Governing Body of
registration of the second ratification communicated to him, the International Labour Office, and having met in its Forty-
the Director-General shall draw the attention of the Members second Session on 4 June 1958, and
of the Organisation to the date upon which the Convention
will come into force. Having decided upon the adoption of certain proposals with
regard to discrimination in the field of employment and
Article 11 occupation, which is the fourth item on the agenda of the
session, and
The Director-General of the International Labour Office shall
communicate to the Secretary-General of the United Nations Having determined that these proposals shall take the form
for registration in accordance with Article 102 of the Charter of an international Convention, and
of the United Nations full particulars of all ratifications,
declarations and acts of denunciation registered by him in Considering that the Declaration of Philadelphia affirms that
accordance with the provisions of the preceding articles. all human beings, irrespective of race, creed or sex, have
the right to pursue both their material well-being and their
Article 12 spiritual development in conditions of freedom and dignity,
of economic security and equal opportunity, and
At such times as may consider necessary the Governing
Body of the International Labour Office shall present to the Considering further that discrimination constitutes a violation
General Conference a report on the working of this of rights enunciated by the Universal Declaration of Human
Convention and shall examine the desirability of placing on Rights,
the agenda of the Conference the question of its revision in
whole or in part. adopts this twenty-fifth day of June of the year one
thousand nine hundred and fifty-eight the following
Article 13 Convention, which may be cited as the Discrimination
(Employment and Occupation) Convention, 1958:
1. Should the Conference adopt a new Convention revising
this Convention in whole or in part, then, unless the new Article 1
Convention otherwise provides--
1. For the purpose of this Convention the term
a) the ratification by a Member of the new revising discrimination includes--
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the (a) any distinction, exclusion or preference made on the
provisions of Article 9 above, if and when the new revising basis of race, colour, sex, religion, political opinion, national
Convention shall have come into force; extraction or social origin, which has the effect of nullifying
or impairing equality of opportunity or treatment in
b) as from the date when the new revising Convention employment or occupation;
comes into force this Convention shall cease to be open to
ratification by the Members. (b) such other distinction, exclusion or preference which has
the effect of nullifying or impairing equality of opportunity or
2. This Convention shall in any case remain in force in its treatment in employment or occupation as may be
actual form and content for those Members which have determined by the Member concerned after consultation
ratified it but have not ratified the revising Convention. with representative employers' and workers' organisations,
where such exist, and with other appropriate bodies.
Duman / Labor I / Prof. Battad / Page 124
2. Any distinction, exclusion or preference in respect of a protection or assistance, shall not be deemed to be
particular job based on the inherent requirements thereof discrimination.
shall not be deemed to be discrimination.
Article 6
3. For the purpose of this Convention the terms
employment and occupation include access to vocational
Each Member which ratifies this Convention undertakes to
training, access to employment and to particular
apply it to non-metropolitan territories in accordance with
occupations, and terms and conditions of employment.
the provisions of the Constitution of the International Labour
Organisation.
Article 2
Article 7
Each Member for which this Convention is in force
undertakes to declare and pursue a national policy designed
The formal ratifications of this Convention shall be
to promote, by methods appropriate to national conditions
communicated to the Director-General of the International
and practice, equality of opportunity and treatment in
Labour Office for registration.
respect of employment and occupation, with a view to
eliminating any discrimination in respect thereof.
Article 8
Article 3
1. This Convention shall be binding only upon those
Members of the International Labour Organisation whose
Each Member for which this Convention is in force
ratifications have been registered with the Director-General.
undertakes, by methods appropriate to national conditions
and practice--
2. It shall come into force twelve months after the date on
which the ratifications of two Members have been registered
(a) to seek the co-operation of employers' and workers'
with the Director-General.
organisations and other appropriate bodies in promoting the
acceptance and observance of this policy;
3. Thereafter, this Convention shall come into force for any
Member twelve months after the date on which its
(b) to enact such legislation and to promote such
ratification has been registered.
educational programmes as may be calculated to secure the
acceptance and observance of the policy;
Article 9
(c) to repeal any statutory provisions and modify any
administrative instructions or practices which are 1. A Member which has ratified this Convention may
inconsistent with the policy; denounce it after the expiration of ten years from the date
on which the Convention first comes into force, by an act
communicated to the Director-General of the International
(d) to pursue the policy in respect of employment under the
Labour Office for registration. Such denunciation shall not
direct control of a national authority;
take effect until one year after the date on which it is
registered.
(e) to ensure observance of the policy in the activities of
vocational guidance, vocational training and placement
2. Each Member which has ratified this Convention and
services under the direction of a national authority;
which does not, within the year following the expiration of
the period of ten years mentioned in the preceding
(f) to indicate in its annual reports on the application of the paragraph, exercise the right of denunciation provided for in
Convention the action taken in pursuance of the policy and this Article, will be bound for another period of ten years
the results secured by such action. and, thereafter, may denounce this Convention at the
expiration of each period of ten years under the terms
provided for in this Article.
Article 4

Article 10
Any measures affecting an individual who is justifiably
suspected of, or engaged in, activities prejudicial to the
security of the State shall not be deemed to be 1. The Director-General of the International Labour Office
discrimination, provided that the individual concerned shall shall notify all Members of the International Labour
have the right to appeal to a competent body established in Organisation of the registration of all ratifications and
accordance with national practice. denunciations communicated to him by the Members of the
Organisation.
Article 5
2. When notifying the Members of the Organisation of the
registration of the second ratification communicated to him,
1. Special measures of protection or assistance provided for
the Director-General shall draw the attention of the Members
in other Conventions or Recommendations adopted by the
of the Organisation to the date upon which the Convention
International Labour Conference shall not be deemed to be
will come into force.
discrimination.

Article 11
2. Any Member may, after consultation with representative
employers' and workers' organisations, where such exist,
determine that other special measures designed to meet the The Director-General of the International Labour Office shall
particular requirements of persons who, for reasons such as communicate to the Secretary-General of the United Nations
sex, age, disablement, family responsibilities or social or for registration in accordance with Article 102 of the Charter
cultural status, are generally recognised to require special of the United Nations full particulars of all ratifications and

Duman / Labor I / Prof. Battad / Page 125

acts of denunciation registered by him in accordance with
the provisions of the preceding Articles. b. Women under the Constitution, Art. II, Sec.
14; Art XIII, Sec 14
Article 12
 Philippine Association of Service
Exporters v. Drilon, 163 SCRA 386 (1988)
At such times as it may consider necessary the Governing
Body of the International Labour Office shall present to the
General Conference a report on the working of this
Convention and shall examine the desirability of placing on
the agenda of the Conference the question of its revision in
whole or in part.

Article 13

1. Should the Conference adopt a new Convention revising

this Convention in whole or in part, then, unless the new
Convention otherwise provides:

a) the ratification by a Member of the new revising

Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
provisions of Article 9 above, if and when the new revising
Convention shall have come into force;

b) as from the date when the new revising Convention

comes into force, this Convention shall cease to be open to
ratification by the Members.
 Phil. Telegraph and Telephone Co.
2. This Convention shall in any case remain in force in its v. NLRC, 272 SCRA 596 (1997)
actual form and content for those Members which have
ratified it but have not ratified the revising Convention.

Article 14

The English and French versions of the text of this

Convention are equally authoritative.

a. Equality: Formal Equality vs. Substantive

Equality

Readings:

 Bartlett, Katharine, Gender Law, in

Duke Journal of Gender Law and Policy (1994)
 Formal Equality and Substantive
Equality in the Textbook on Gender and the Law by Angela
Harris
 Baldoz, Rosalinda, Job
discrimination against women in the work environment: the
Philippine setting, PLR, Vol. 24, No. 1 (2000).

c. Coverage, Rule XII, Sec. I

Employment of Women and Minors

SECTION 1. General statement on coverage. — This Rule

shall apply to all employers, whether operating for profit or
not, including educational, religious and charitable
institutions, except to the Government and to government-
owned or controlled corporations and to employers of
household helpers and persons in their personal service
insofar as such workers are concerned.

Duman / Labor I / Prof. Battad / Page 126

 (b) Favoring a male employee over a female employee with
d. Prohibited Acts respect to promotion, training opportunities, study and
scholarship grants solely on account of their sexes.
1) Night Work/Exception, Art. 130-131
Criminal liability for the willful commission of any unlawful
ART. 130. Nightwork prohibition. - No woman, regardless of
act as provided in this Article or any violation of the rules
age, shall be employed or permitted or suffered to work,
and regulations issued pursuant to Section 2 hereof shall be
with or without compensation:
penalized as provided in Articles 288 and 289 of this Code:
Provided, That the institution of any criminal action under
(a) In any industrial undertaking or branch thereof between this provision shall not bar the aggrieved employee from
ten o’clock at night and six o’clock in the morning of the filing an entirely separate and distinct action for money
following day; or claims, which may include claims for damages and other
affirmative reliefs. The actions hereby authorized shall
proceed independently of each other. (As amended by
(b) In any commercial or non-industrial undertaking or
Republic Act No. 6725, May 12, 1989).
branch thereof, other than agricultural, between midnight
and six o’clock in the morning of the following day; or
10) Stipulation Against Marriage, Art. 136
(c) In any agricultural undertaking at nighttime unless she is
ART. 136. Stipulation against marriage. - It shall be unlawful
given a period of rest of not less than nine (9) consecutive
for an employer to require as a condition of employment or
hours.
continuation of employment that a woman employee shall
not get married, or to stipulate expressly or tacitly that upon
ART. 131. Exceptions. - The prohibitions prescribed by the getting married, a woman employee shall be deemed
preceding Article shall not apply in any of the following resigned or separated, or to actually dismiss, discharge,
cases: discriminate or otherwise prejudice a woman employee
merely by reason of her marriage.
(a) In cases of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic  Duncan Association of Detailman –
or other disasters or calamity, to prevent loss of life or PTGWO v. Glaxo Wellcome Philippines, Inc., 438 SCRA 343
property, or in cases of force majeure or imminent danger to (2004)
public safety;

(b) In case of urgent work to be performed on machineries,

equipment or installation, to avoid serious loss which the
employer would otherwise suffer;

(c) Where the work is necessary to prevent serious loss of

perishable goods;

(d) Where the woman employee holds a responsible position

of managerial or technical nature, or where the woman
employee has been engaged to provide health and welfare
services;

(e) Where the nature of the work requires the manual skill
and dexterity of women workers and the same cannot be
performed with equal efficiency by male workers;

(f) Where the women employees are immediate members of

the family operating the establishment or undertaking; and

(g) Under other analogous cases exempted by the Secretary

of Labor and Employment in appropriate regulations.
11) Discharge on Account of Pregnancy, Art. 137

9) Discrimination, Art. 135

ART. 137. Prohibited acts. - (a) It shall be unlawful for any
employer:
ART. 135. Discrimination prohibited. - It shall be unlawful for
any employer to discriminate against any woman employee
with respect to terms and conditions of employment solely (1) To deny any woman employee the benefits provided for
on account of her sex. in this Chapter or to discharge any woman employed by him
for the purpose of preventing her from enjoying any of the
benefits provided under this Code.
The following are acts of discrimination:

(2) To discharge such woman on account of her pregnancy,

(a) Payment of a lesser compensation, including wage,
or while on leave or in confinement due to her pregnancy;
salary or other form of remuneration and fringe benefits, to
a female employees as against a male employee, for work of
equal value; and (3) To discharge or refuse the admission of such woman
upon returning to her work for fear that she may again be
pregnant.

Duman / Labor I / Prof. Battad / Page 127

 "(b) The full payment shall be advanced by the employer
within thirty (30) days from the filing of the maternity leave
application;

d. Facilities, Art. 132, 134

"(c) That payment of daily maternity benefits shall be a bar
to the recovery of sickness benefits provided by this Act for
the same period for which daily maternity benefits have
ART. 132. Facilities for women. - The Secretary of Labor and been received;
Employment shall establish standards that will ensure the
safety and health of women employees. In appropriate
"(d) That the maternity benefits provided under this section
cases, he shall, by regulations, require any employer to:
shall be paid only for the first four (4) deliveries or
miscarriages;
(a) Provide seats proper for women and permit them to use
such seats when they are free from work and during
"(e) That the SSS shall immediately reimburse the employer
working hours, provided they can perform their duties in this
of one hundred percent (100%) of the amount of maternity
position without detriment to efficiency;
benefits advanced to the employee by the employer upon
receipt of satisfactory proof of such payment and legality
(b) To establish separate toilet rooms and lavatories for men thereof; and
and women and provide at least a dressing room for
women;
"(f) That if an employee member should give birth or suffer
miscarriage without the required contributions having been
(c) To establish a nursery in a workplace for the benefit of remitted for her by her employer to the SSS, or without the
the women employees therein; and latter having been previously notified by the employer of the
time of the pregnancy, the employer shall pay to the SSS
damages equivalent to the benefits which said employee
(d) To determine appropriate minimum age and other
member would otherwise have been entitled to.
standards for retirement or termination in special
occupations such as those of flight attendants and the like.
g. Sexual Harassment (RA 7877)
ART. 134. Family planning services; incentives for family
planning. - (a) Establishments which are required by law to
maintain a clinic or infirmary shall provide free family REPUBLIC ACT NO. 7877
planning services to their employees which shall include, but
not be limited to, the application or use of contraceptive pills
and intrauterine devices.
AN ACT DECLARING SEXUAL HARASSMENT
UNLAWFUL IN THE EMPLOYMENT, EDUACATION
OR TRAINING ENVIRONMENT, AND FOR OTHER
(b) In coordination with other agencies of the government PURPOSES
engaged in the promotion of family planning, the
Department of Labor and Employment shall develop and
prescribe incentive bonus schemes to encourage family Be it enacted by the Senate and House of
planning among female workers in any establishment or Representatives of the Philippines in Congress
enterprise. assembled:

e. Special Women Workers, 138 Section 1. Title. – This Act shall be known as the
"Anti-Sexual Harassment Act of 1995."
ART. 138. Classification of certain women workers . - Any
woman who is permitted or suffered to work, with or
without compensation, in any night club, cocktail lounge, Sec. 2. Declaration of Policy. – The State shall
massage clinic, bar or similar establishments under the value the dignity of every individual, enhance the
effective control or supervision of the employer for a development of it human resources, guarantee full
substantial period of time as determined by the Secretary of respect for human rights, and uphold the dignity of
Labor and Employment, shall be considered as an employee workers, employees, applicants for employment,
of such establishment for purposes of labor and social students or those undergoing training, instruction or
legislation. education. Towards this end, all forms of sexual
harassment in the employment, education or training
f. Maternity Leave, Social Security Law of 1997 environment are hereby declared unlawful.
(RA 1161, as amended by RA 8282), Sec. 14-A, RA 828

Sec. 3. Work, Education or Training-related

"SEC. 14-A. Maternity Leave Benefit. - A female member Sexual Harassment Defined. – Work, education or
who has paid at least three (3) monthly contributions in the
training-related sexual harassment is committed by an
twelve-month period immediately preceding the semester of
her childbirth or miscarriage shall be paid a daily maternity
employee, manager, supervisor, agent of the
benefit equivalent to one hundred percent (100%) of her employer, teacher, instructor, professor, coach,
average daily salary credit for sixty (60) days or seventy- trainor, or any other person who, having authority,
eight (78) days in case of caesarian delivery, subject to the influence or moral ascendancy over another in a work
following conditions: or training or education environment, demands,
requests or otherwise requires any sexual favor from
the other, regardless of whether the demand, request
"(a) That the employee shall have notified her employer of
her pregnancy and the probable date of her childbirth, which or requirement for submission is accepted by the
notice shall be transmitted to the SSS in accordance with the object of said Act.
rules and regulations it may provide;
(a) In a work-related or employment
environment, sexual harassment is committed when:
Duman / Labor I / Prof. Battad / Page 128
 (1) The sexual favor is made as a condition The said rules and regulations issued pursuant
in the hiring or in the employment, re-employment or to this section (a) shall include, among others,
continued employment of said individual, or in guidelines on proper decorum in the workplace and
granting said individual favorable compensation, educational or training institutions.
terms, conditions, promotions, or privileges; or the
refusal to grant the sexual favor results in limiting, (c) Create a committee on decorum and
segregating or classifying the employee which in a investigation of cases on sexual harassment. The
way would discriminate, deprive or diminish committee shall conduct meetings, as the case may
employment opportunities or otherwise adversely be, with other officers and employees, teachers,
affect said employee; instructors, professors, coaches, trainors and
students or trainees to increase understanding and
(2) The above acts would impair the prevent incidents of sexual harassment. It shall also
employee’s rights or privileges under existing labor conduct the investigation of the alleged cases
laws; or constituting sexual harassment.

(3) The above acts would result in an In the case of a work-related environment, the
intimidating, hostile, or offensive environment for the committee shall be composed of at least one (1)
employee. representative each from the management, the union,
if any, the employees from the supervisory rank, and
(b) In an education or training environment, from the rank and file employees.
sexual harassment is committed:
In the case of the educational or training
(1) Against one who is under the care, institution, the committee shall be composed of at
custody or supervision of the offender; least one (1) representative from the administration,
the trainors, teachers, instructors, professors or
coaches and students or trainees, as the case maybe.
(2) Against one whose education, training,
apprenticeship or tutorship is entrusted to the
offender; "The employer or head of office, educational or
training institution shall disseminate or post a copy of
this Act for the information of all concerned.
(3) When the sexual favor is made a
condition to the giving of a passing grade, or the
granting of honors and scholarships, or the payment Sec. 5. Liability of the Employer, Head of Office,
of a stipend, allowance or other benefits, privileges, or Educational or Training Institution. – The employer or
considerations; or head of office, educational training institution shall be
solidarily liable for damage arising from the acts of
sexual harassment committed in the employment,
(4) When the sexual advances result in an education or training environment if the employer or
intimidating, hostile or offensive environment for the head of office, educational or training institution is
student, trainee or apprentice. informed of such acts by the offended party and no
immediate action is taken thereon.
Any person who directs or induces
another to commit any act of sexual harassment as Sec. 6. Independent Action for Damages. –
herein defined, or who cooperates in the commission Nothing in this Act shall preclude the victim of work,
thereof by another without which it would not have education or training-related sexual harassment from
been committed, shall also be held liable under this instituting a separate and independent action for
Act. damages and other affirmative relief.

Sec.4. Duty of the Employer or Head of Office in Sec. 7. Penalties. – Any person who violates the
a Work-related, Education or Training Environment. – provisions of this Act shall, upon conviction, be
It shall be the duty of the employer or the head of the penalized by imprisonment of not less than one (1)
work-related, educational or training environment or month nor more than six (6) months, or a fine of not
institution, to prevent or deter the commission of acts less than Ten thousand pesos (P10,000) nor more
of sexual harassment and to provide the procedures than Twenty thousand pesos (P20,000), or both such
for the resolution, settlement or prosecution of acts of fine and imprisonment at the discretion of the court.
sexual harassment. Towards this end, the employer or
head of office shall:
Any action arising from the violation of the
provision of this Act shall prescribe in three (3) years.
(a) Promulgate appropriate rules and
regulations in consultation with the jointly approved by
the employees or students or trainees, through their Sec. 8. Separability Clause – If any portion or
duly designated representatives, prescribing the provision of this Act is declared void and
procedure for the investigation or sexual harassment unconstitutional, the remaining portions or provisions
cases and the administrative sanctions therefor. hereof shall not be affected by such declaration.

Administrative sanctions shall not be a bar to Sec.9. Repealing Clause. – All laws, decrees,
prosecution in the proper courts for unlawful acts of orders, rules and regulations, other issuances, or
sexual harassment. parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

Duman / Labor I / Prof. Battad / Page 129

 Sec.10. Effectivity Clause. – This Act shall take
effect fifteen (15) days after its complete publication in
at least two (2) national newspaper of general
circulation.  Renato S. Gatbonton v. NLRC, et
al., 479 SCRA 416 (2006)

 Libres v. NLRC, 307 SCRA 675

(1999)

2. Minors

Reference: Art.s 139-140; Omnibus Rules, Book

III, Rule XII, Secs. 2-3; Special Protection of Children Act of
2003 (RA 7610, as amended by RA 9231); ILO Convention
No.182 and ILO Recommendation No. 190

EMPLOYMENT OF MINORS
ART. 139. Minimum employable age. - (a) No child below
fifteen (15) years of age shall be employed, except when he
 Philippine Aelous Automotive works directly under the sole responsibility of his parents or
United Corp. v. NLRC, 331SCRA 237 (2000) guardian, and his employment does not in any way interfere
with his schooling.

(b) Any person between fifteen (15) and eighteen (18) years
of age may be employed for such number of hours and such
periods of the day as determined by the Secretary of Labor
and Employment in appropriate regulations.

(c) The foregoing provisions shall in no case allow the

employment of a person below eighteen (18) years of age in
an undertaking which is hazardous or deleterious in nature
as determined by the Secretary of Labor and Employment.

ART. 140. Prohibition against child discrimination. - No

employer shall discriminate against any person in respect to
terms and conditions of employment on account of his age.

SECTION 2. Employable age. — Children below fifteen (15)

years of age may be allowed to work under the direct
responsibility of their parents or guardians in any non-
hazardous undertaking where the work will not in any way
interfere with their schooling. In such cases, the children
shall not be considered as employees of the employers or
their parents or guardians.

SECTION 3. Eligibility for employment. — Any person of

either sex, between 15 and 18 years of age, may be
employed in any non-hazardous work. No employer shall
discriminate against such person in regard to terms and
conditions of employment on account of his age.

Duman / Labor I / Prof. Battad / Page 130

For purposes of this Rule, a non-hazardous work or institutions, courts of law, administrative authorities,
undertaking shall mean any work or activity in which the and legislative bodies, consistent with the principle of
employee is not exposed to any risk which constitutes an First Call for Children as enunciated in the United
imminent danger to his safety and health. The Secretary of Nations Convention on the Rights of the Child. Every
Labor and Employment shall from time to time publish a list effort shall be exerted to promote the welfare of
of hazardous work and activities in which persons 18 years children and enhance their opportunities for a useful
of age and below cannot be employed.
and happy life."

Republic of the Philippines

Section 2. Section 12 of the same Act, as amended,
Congress of the Philippines
is hereby further amended to read as follows:
Metro Manila

"Sec. 2. Employment of Children - Children below

Twelfth Congress
fifteen (15) years of age shall not be employed
Third Regular Session
except:

"1) When a child works directly under the sole

responsibility of his/her parents or legal guardian and
Begun and held in Metro Manila, on Monday, the where only members of his/her family are employed:
twenty-eighth day of July, two thousand three. Provided, however, That his/her employment neither
endangers his/her life, safety, health, and morals, nor
Republic Act No. 9231 December 19, 2003 impairs his/her normal development: Provided,
further, That the parent or legal guardian shall provide
the said child with the prescribed primary and/or
AN ACT PROVIDING FOR THE ELIMINATION OF secondary education; or
THE WORST FORMS OF CHILD LABOR AND
AFFORDING STRONGER PROTECTION FOR THE
WORKING CHILD, AMENDING FOR THIS "2) Where a child's employment or participation in
PURPOSE REPUBLIC ACTNO. 7610, AS public entertainment or information through cinema,
AMENDED, OTHERWISE KNOWN AS THE theater, radio, television or other forms of media is
"SPECIAL PROTECTION OF CHILDREN AGAINST essential: Provided, That the employment contract is
CHILD ABUSE, EXPLOITATION AND concluded by the child's parents or legal guardian,
DISCRIMINATION ACT" with the express agreement of the child concerned, if
possible, and the approval of the Department of Labor
and Employment: Provided, further, That the following
Be it enacted by the Senate and the House of requirements in all instances are strictly complied
Representatives of the Philippines in Congress with:
assembled:

"(a) The employer shall ensure the protection, health,

Section 1. Section 2 of Republic Act No. 7610, as safety, morals and normal development of the child;
amended, otherwise known as the "Special Protection
of Children Against Child Abuse, Exploitation and
Discrimination Act", is hereby amended to read as "(b) The employer shall institute measures to prevent
follows: the child's exploitation or discrimination taking into
account the system and level of remuneration, and
the duration and arrangement of working time; and
"Sec. 2. Declaration of State Policy and Principles. - It
is hereby declared to be the policy of the State to
provide special protection to children from all forms of "(c) The employer shall formulate and implement,
abuse, neglect, cruelty, exploitation and subject to the approval and supervision of competent
discrimination, and other conditions prejudicial to their authorities, a continuing program for training and skills
development including child labor and its worst forms; acquisition of the child.
provide sanctions for their commission and carry out a
program for prevention and deterrence of and crisis "In the above-exceptional cases where any such child
intervention in situations of child abuse, exploitation may be employed, the employer shall first secure,
and discrimination. The State shall intervene on before engaging such child, a work permit from the
behalf of the child when the parent, guardian, teacher Department of Labor and Employment which shall
or person having care or custody of the child fails or is ensure observance of the above requirements.
unable to protect the child against abuse, exploitation
and discrimination or when such acts against the child
"For purposes of this Article, the term "child" shall
are committed by the said parent, guardian, teacher
apply to all persons under eighteen (18) years of
or person having care and custody of the same.
age."

"It shall be the policy of the State to protect and

Section 3. The same Act, as amended, is hereby
rehabilitate children gravely threatened or
further amended by adding new sections to be
endangered by circumstances which affect or will
denominated as Sections 12-A, 12-B, 12-C, and 12-D
affect their survival and normal development and over
to read as follows:
which they have no control.

"Sec. 2-A. Hours of Work of a Working Child. - Under

"The best interests of children shall be the paramount
the exceptions provided in Section 12 of this Act, as
consideration in all actions concerning them, whether
amended:
undertaken by public or private social welfare
Duman / Labor I / Prof. Battad / Page 131
"(1) A child below fifteen (15) years of age may be "(3) The use, procuring or offering of a child for illegal
allowed to work for not more than twenty (20) hours a or illicit activities, including the production and
week: Provided, That the work shall not be more than trafficking of dangerous drugs and volatile substances
four (4) hours at any given day; prohibited under existing laws; or

"(2) A child fifteen (15) years of age but below "(4) Work which, by its nature or the circumstances in
eighteen (18) shall not be allowed to work for more which it is carried out, is hazardous or likely to be
than eight (8) hours a day, and in no case beyond harmful to the health, safety or morals of children,
forty (40) hours a week; such that it:

"(3) No child below fifteen (15) years of age shall be "a) Debases, degrades or demeans the intrinsic worth
allowed to work between eight o'clock in the evening and dignity of a child as a human being; or
and six o'clock in the morning of the following day and
no child fifteen (15) years of age but below eighteen "b) Exposes the child to physical, emotional or sexual
(18) shall be allowed to work between ten o'clock in abuse, or is found to be highly stressful
the evening and six o'clock in the morning of the psychologically or may prejudice morals; or
following day."
"c) Is performed underground, underwater or at
"Sec. 12-B. Ownership, Usage and Administration of dangerous heights; or
the Working Child's Income. - The wages, salaries,
earnings and other income of the working child shall
belong to him/her in ownership and shall be set aside "d) Involves the use of dangerous machinery,
primarily for his/her support, education or skills equipment and tools such as power-driven or
acquisition and secondarily to the collective needs of explosive power-actuated tools; or
the family: Provided, That not more than twenty
percent (20%) of the child's income may be used for "e) Exposes the child to physical danger such as, but
the collective needs of the family. not limited to the dangerous feats of balancing,
physical strength or contortion, or which requires the
"The income of the working child and/or the property manual transport of heavy loads; or
acquired through the work of the child shall be
administered by both parents. In the absence or "f) Is performed in an unhealthy environment exposing
incapacity of either of the parents, the other parent the child to hazardous working conditions, elements,
shall administer the same. In case both parents are substances, co-agents or processes involving
absent or incapacitated, the order of preference on ionizing, radiation, fire, flammable substances,
parental authority as provided for under the Family noxious components and the like, or to extreme
Code shall apply. temperatures, noise levels, or vibrations; or

"Sec. 12-C. Trust Fund to Preserve Part of the "g) Is performed under particularly difficult conditions;
Working Child's Income. - The parent or legal or
guardian of a working child below eighteen (18) years
of age shall set up a trust fund for at least thirty "h) Exposes the child to biological agents such as
percent (30%) of the earnings of the child whose bacteria, fungi, viruses, protozoans, nematodes and
wages and salaries from work and other income other parasites; or
amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render
a semi-annual accounting of the fund to the "i) Involves the manufacture or handling of explosives
Department of Labor and Employment, in compliance and other pyrotechnic products."
with the provisions of this Act. The child shall have full
control over the trust fund upon reaching the age of Section 4. Section 13 of the same Act is hereby
majority. amended to read as follows:

"Sec. 12-D. Prohibition Against Worst Forms of Child "Sec. 13. Access to Education and Training for
Labor. - No child shall be engaged in the worst forms Working Children - "a) No child shall be deprived of
of child labor. The phrase "worst forms of child labor" formal or non-formal education. In all cases of
shall refer to any of the following: employment allowed in this Act, the employer shall
provide a working child with access to at least primary
"(1) All forms of slavery, as defined under the "Anti- and secondary education.
trafficking in Persons Act of 2003", or practices similar
to slavery such as sale and trafficking of children, "b) To ensure and guarantee the access of the
debt bondage and serfdom and forced or compulsory working child to education and training, the
labor, including recruitment of children for use in Department of Education (DEPED) shall: (1)
armed conflict; or formulate, promulgate, and implement relevant and
effective course designs and educational programs;
"(2) The use, procuring, offering or exposing of a child (2) conduct the necessary training for the
for prostitution, for the production of pornography or implementation of the appropriate curriculum for the
for pornographic performances; or purpose; (3) ensure the availability of the needed
educational facilities and materials; and (4) conduct
continuing research and development program for the

Duman / Labor I / Prof. Battad / Page 132

necessary and relevant alternative education of the B and 12-C of this Act shall pay a fine of not less than
working child. Ten thousand pesos (P10,000.00) but not more than
One hundred thousand pesos (P100,000.00), or be
"c) The DEPED shall promulgate a course design required to render community service for not less than
under its non-formal education program aimed at thirty (30) days but not more than one (1) year, or
promoting the intellectual, moral and vocational both such fine and community service at the
efficiency of working children who have not discretion of the court: Provided, That the maximum
undergone or finished elementary or secondary length of community service shall be imposed on
education. Such course design shall integrate the parents or legal guardians who have violated the
learning process deemed most effective under given provisions of this Act three (3) times; Provided,
circumstances." further, That in addition to the community service, the
penalty of imprisonment of thirty (30) days but not
more than one (1) year or both at the discretion of the
Section 5. Section 14 of the same Act is hereby court, shall be imposed on the parents or legal
amended to read as follows: guardians who have violated the provisions of this Act
more than three (3) times.
"Sec. 14. Prohibition on the Employment of Children
in Certain Advertisements. - No child shall be "g) The Secretary, of Labor and Employment or
employed as a model in any advertisement directly or his/her duly authorized representative may, after due
indirectly promoting alcoholic beverages, intoxicating notice and hearing, order the closure of any business
drinks, tobacco and its byproducts, gambling or any firm or establishment found to have violated any of
form of violence or pornography." the provisions of this Act more than three (3) times.
He/she shall likewise order the immediate closure of
Section 6. Section 16 of the same Act, is hereby such firm or establishment if:
amended to read as follows:
"(1) The violation of any provision of this Act has
"Sec. 16. Penal Provisions - resulted in the death, insanity or serious physical
injury of a child employed in such establishment; or
"a) Any employer who violates Sections 12, 12-A, and
Section 14 of this act, as amended, shall be penalized "(2) Such firm or establishment is engaged or
by imprisonment of six (6) months and one (1) day to employed in prostitution or in obscene or lewd shows.
six (6) years or a fine of not less than Fifty thousand
pesos (P50,000.00) but not more than Three hundred "h) In case of such closure, the employer shall be
thousand pesos (P300,000.00) or both at the required to pay the employee(s) the separation pay
discretion of the court. and other monetary benefits provided for by law."

"b) Any person who violates the provision of Section Section 7. The same Act is hereby further amended
12-D of this act or the employer of the subcontractor by adding a new section to be denominated as
who employs, or the one who facilitates the Section 16-A, to read as follows:
employment of a child in hazardous work, shall suffer
the penalty of a fine of not less than One hundred
thousand pesos (P100,000.00) but not more than One "Sec. 16-A. Trust Fund from Fines and Penalties -
million pesos (P1,000,000.00), or imprisonment of not The fine imposed by the court shall be treated as a
less than twelve (12) years and one (1) day to twenty Trust Fund, administered by the Department of Labor
(20) years, or both such fine and imprisonment at the and Employment and disbursed exclusively for the
discretion of the court. needs, including the costs of rehabilitation and
reintegration into the mainstream of society of the
working children who are victims of the violations of
"c) Any person who violates Sections 12-D(1) and 12- this Act, and for the programs and projects that will
D(2) shall be prosecuted and penalized in accordance prevent acts of child labor."
with the penalty provided for by R. A. 9208 otherwise
known as the "Anti-trafficking in Persons Act of 2003":
Provided, That Such penalty shall be imposed in its Section 8. Section 27 of the same Act is hereby
maximum period. amended to read as follows:

"d) Any person who violates Section 12-D (3) shall be "Sec. 27. Who May File a Complaint - Complaints on
prosecuted and penalized in accordance with R.A. cases of unlawful acts committed against children as
9165, otherwise known as the "Comprehensive enumerated herein may be filed by the following:
Dangerous Drugs Act of 2002"; Provided, That such
penalty shall be imposed in its maximum period. "(a) Offended party;

"e) If a corporation commits any of the violations "(b) Parents or guardians;

aforecited, the board of directors/trustees and officers,
which include the president, treasurer and secretary "(c) Ascendant or collateral relative within the third
of the said corporation who participated in or degree of consanguinity;
knowingly allowed the violation, shall be penalized
accordingly as provided for under this Section.
"(d) Officer, social worker or representative of a
licensed child-caring institution;
"f) Parents, biological or by legal fiction, and legal
guardians found to be violating Sections 12, 12-A, 12-
Duman / Labor I / Prof. Battad / Page 133
"(e) Officer or social worker of the Department of Section 12. Repealing Clause. - All laws, decrees, or
Social Welfare and Development; rules inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
"(f) Barangay chairman of the place where the
violation occurred, where the child is residing or Section 13. Effectivity. - This Act shall take effect
employed; or fifteen (15) days from the date of its complete
publication in the Official Gazette or in at least two (2)
"(g) At least three (3) concerned, responsible citizens national newspapers of general circulation.
where the violation occurred."
C182 Worst Forms of Child Labour Convention,
Section 9. The same Act is hereby further amended 1999
by adding new sections to Section 16 to be
denominated as Sections 16-A, 16-B and 16-C to Convention concerning the Prohibition and Immediate
read as follows: Action for the Elimination of the Worst Forms of Child
Labour (Note: Date of coming into force: 19:11:2000)
"Sec. 16-A. Jurisdiction - The family courts shall have Convention:C182
original jurisdiction over all cases involving offenses Place:Geneva
punishable under this Act: Provided, That in cities or Session of the Conference:87
provinces where there are no family courts yet, the Date of adoption:17:06:1999
regional trial courts and the municipal trial courts shall Subject classification: Elimination of Child Labour
have concurrent jurisdiction depending on the Subject classification: Children and Young Persons
penalties prescribed for the offense charged. Subject: Elimination of Child Labour and
Protection of Children and Young Persons
"The preliminary investigation of cases filed under this
Act shall be terminated within a period of thirty (30)
days from the date of filing. The General Conference of the International Labour
Organization,
"If the preliminary investigation establishes a prima
facie case, then the corresponding information shall Having been convened at Geneva by the Governing
be filed in court within forty eight (48) hours from the Body of the International Labour Office, and having
termination of the investigation. met in its 87th Session on 1 June 1999, and

"Trial of cases under this Act shall be terminated by Considering the need to adopt new instruments for
the court not later than ninety (90) days from the date the prohibition and elimination of the worst forms of
of filing of information. Decision on said cases shall child labour, as the main priority for national and
be rendered within a period of fifteen (15) days from international action, including international
the date of submission of the case. cooperation and assistance, to complement the
Convention and the Recommendation concerning
"Sec. 15. Exemptions from Filing Fees. - When the Minimum Age for Admission to Employment, 1973,
victim of child labor institutes a separate civil action which remain fundamental instruments on child
for the recovery of civil damages, he/she shall be labour, and
exempt from payment of filing fees.
Considering that the effective elimination of the worst
"Sec. 16-C. Access to Immediate Legal, Medical and forms of child labour requires immediate and
Psycho-Social Services - The working child shall have comprehensive action, taking into account the
the right to free legal, medical and psycho-social importance of free basic education and the need to
services to be provided by the State." remove the children concerned from all such work
and to provide for their rehabilitation and social
integration while addressing the needs of their
Section 10. Implementing Rules and Regulations - families, and
The Secretary of Labor and Employment, in
coordination with the Committees on Labor and
Employment of both Houses of Congress, shall issue Recalling the resolution concerning the elimination of
the necessary Implementing Rules and Regulations child labour adopted by the International Labour
(IRR) to effectively implement the provisions of this Conference at its 83rd Session in 1996, and
Act, in consultation with concerned public and private
sectors, within sixty (60) days from the effectivity of Recognizing that child labour is to a great extent
this Act. caused by poverty and that the long-term solution lies
in sustained economic growth leading to social
Such rules and regulations shall take effect upon their progress, in particular poverty alleviation and
publication in two (2) national newspapers of general universal education, and
circulation.
Recalling the Convention on the Rights of the Child
Section 11. Separability Clause. - If any provision of adopted by the United Nations General Assembly on
this Act is declared invalid or unconstitutional, the 20 November 1989, and
validity of the remaining provisions hereof shall
remain in full force and effect. Recalling the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up,

Duman / Labor I / Prof. Battad / Page 134

adopted by the International Labour Conference at its standards, in particular Paragraphs 3 and 4 of the
86th Session in 1998, and Worst Forms of Child Labour Recommendation, 1999.

Recalling that some of the worst forms of child labour 2. The competent authority, after consultation with the
are covered by other international instruments, in organizations of employers and workers concerned,
particular the Forced Labour Convention, 1930, and shall identify where the types of work so determined
the United Nations Supplementary Convention on the exist.
Abolition of Slavery, the Slave Trade, and Institutions
and Practices Similar to Slavery, 1956, and 3. The list of the types of work determined under
paragraph 1 of this Article shall be periodically
Having decided upon the adoption of certain examined and revised as necessary, in consultation
proposals with regard to child labour, which is the with the organizations of employers and workers
fourth item on the agenda of the session, and concerned.

Having determined that these proposals shall take the Article 5

form of an international Convention;
Each Member shall, after consultation with employers'
adopts this seventeenth day of June of the year one and workers' organizations, establish or designate
thousand nine hundred and ninety-nine the following appropriate mechanisms to monitor the
Convention, which may be cited as the Worst Forms implementation of the provisions giving effect to this
of Child Labour Convention, 1999. Convention.

Article 1 Article 6

Each Member which ratifies this Convention shall take 1. Each Member shall design and implement
immediate and effective measures to secure the programmes of action to eliminate as a priority the
prohibition and elimination of the worst forms of child worst forms of child labour.
labour as a matter of urgency.
2. Such programmes of action shall be designed and
Article 2 implemented in consultation with relevant government
institutions and employers' and workers'
For the purposes of this Convention, the term child organizations, taking into consideration the views of
shall apply to all persons under the age of 18. other concerned groups as appropriate.

Article 3 Article 7

For the purposes of this Convention, the term the 1. Each Member shall take all necessary measures to
worst forms of child labour comprises: ensure the effective implementation and enforcement
of the provisions giving effect to this Convention
including the provision and application of penal
(a) all forms of slavery or practices similar to slavery, sanctions or, as appropriate, other sanctions.
such as the sale and trafficking of children, debt
bondage and serfdom and forced or compulsory
labour, including forced or compulsory recruitment of 2. Each Member shall, taking into account the
children for use in armed conflict; importance of education in eliminating child labour,
take effective and time-bound measures to:
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for (a) prevent the engagement of children in the worst
pornographic performances; forms of child labour;

(c) the use, procuring or offering of a child for illicit (b) provide the necessary and appropriate direct
activities, in particular for the production and assistance for the removal of children from the worst
trafficking of drugs as defined in the relevant forms of child labour and for their rehabilitation and
international treaties; social integration;

(d) work which, by its nature or the circumstances in (c) ensure access to free basic education, and,
which it is carried out, is likely to harm the health, wherever possible and appropriate, vocational
safety or morals of children. training, for all children removed from the worst forms
of child labour;
Article 4
(d) identify and reach out to children at special risk;
and
1. The types of work referred to under Article 3(d)
shall be determined by national laws or regulations or
by the competent authority, after consultation with the (e) take account of the special situation of girls.
organizations of employers and workers concerned,
taking into consideration relevant international

Duman / Labor I / Prof. Battad / Page 135

3. Each Member shall designate the competent Article 13
authority responsible for the implementation of the
provisions giving effect to this Convention. The Director-General of the International Labour
Office shall communicate to the Secretary-General of
Article 8 the United Nations, for registration in accordance with
article 102 of the Charter of the United Nations, full
Members shall take appropriate steps to assist one particulars of all ratifications and acts of denunciation
another in giving effect to the provisions of this registered by the Director-General in accordance with
Convention through enhanced international the provisions of the preceding Articles.
cooperation and/or assistance including support for
social and economic development, poverty Article 14
eradication programmes and universal education.
At such times as it may consider necessary, the
Article 9 Governing Body of the International Labour Office
shall present to the General Conference a report on
The formal ratifications of this Convention shall be the working of this Convention and shall examine the
communicated to the Director-General of the desirability of placing on the agenda of the
International Labour Office for registration. Conference the question of its revision in whole or in
part.
Article 10
Article 15
1. This Convention shall be binding only upon those
Members of the International Labour Organization 1. Should the Conference adopt a new Convention
whose ratifications have been registered with the revising this Convention in whole or in part, then,
Director-General of the International Labour Office. unless the new Convention otherwise provides --

2. It shall come into force 12 months after the date on (a) the ratification by a Member of the new revising
which the ratifications of two Members have been Convention shall ipso jure involve the immediate
registered with the Director-General. denunciation of this Convention, notwithstanding the
provisions of Article 11 above, if and when the new
revising Convention shall have come into force;
3. Thereafter, this Convention shall come into force
for any Member 12 months after the date on which its
ratification has been registered. (b) as from the date when the new revising
Convention comes into force, this Convention shall
cease to be open to ratification by the Members.
Article 11
2. This Convention shall in any case remain in force in
1. A Member which has ratified this Convention may its actual form and content for those Members which
denounce it after the expiration of ten years from the have ratified it but have not ratified the revising
date on which the Convention first comes into force, Convention.
by an act communicated to the Director-General of
the International Labour Office for registration. Such
denunciation shall not take effect until one year after Article 16
the date on which it is registered.
The English and French versions of the text of this
2. Each Member which has ratified this Convention Convention are equally authoritative.
and which does not, within the year following the
expiration of the period of ten years mentioned in the R190 Worst Forms of Child Labour
preceding paragraph, exercise the right of Recommendation, 1999
denunciation provided for in this Article, will be bound
for another period of ten years and, thereafter, may Recommendation concerning the prohibition and
denounce this Convention at the expiration of each immediate action for the elimination of the worst forms
period of ten years under the terms provided for in of child labour
this Article. Place:Geneva
Session of the Conference:87
Article 12 Date of adoption:17:06:1999
Subject classification: Elimination of Child Labour
1. The Director-General of the International Labour Subject classification: Children and Young Persons
Office shall notify all Members of the International Subject: Elimination of Child Labour and
Labour Organization of the registration of all Protection of Children and Young Persons
ratifications and acts of denunciation communicated
by the Members of the Organization.
The General Conference of the International Labour
2. When notifying the Members of the Organization of Organization,
the registration of the second ratification, the Director-
General shall draw the attention of the Members of Having been convened at Geneva by the Governing
the Organization to the date upon which the Body of the International Labour Office, and having
Convention shall come into force.
Duman / Labor I / Prof. Battad / Page 136
met in its Eighty-seventh Session on 1 June 1999, II. Hazardous work
and
3. In determining the types of work referred to under
Having adopted the Worst Forms of Child Labour Article 3(d) of the Convention, and in identifying
Convention, 1999, and where they exist, consideration should be given, inter
alia, to:
Having decided upon the adoption of certain
proposals with regard to child labour, which is the (a) work which exposes children to physical,
fourth item on the agenda of the session, and psychological or sexual abuse;

Having determined that these proposals shall take the (b) work underground, under water, at dangerous
form of a Recommendation supplementing the Worst heights or in confined spaces;
Forms of Child Labour Convention, 1999;
(c) work with dangerous machinery, equipment and
adopts this seventeenth day of June of the year one tools, or which involves the manual handling or
thousand nine hundred and ninety-nine the following transport of heavy loads;
Recommendation, which may be cited as the Worst
Forms of Child Labour Recommendation, 1999. (d) work in an unhealthy environment which may, for
example, expose children to hazardous substances,
1. The provisions of this Recommendation agents or processes, or to temperatures, noise levels,
supplement those of the Worst Forms of Child Labour or vibrations damaging to their health;
Convention, 1999 (hereafter referred to as "the
Convention"), and should be applied in conjunction (e) work under particularly difficult conditions such as
with them. work for long hours or during the night or work where
the child is unreasonably confined to the premises of
I. Programmes of action the employer.

2. The programmes of action referred to in Article 6 of 4. For the types of work referred to under Article 3(d)
the Convention should be designed and implemented of the Convention and Paragraph 3 above, national
as a matter of urgency, in consultation with relevant laws or regulations or the competent authority could,
government institutions and employers' and workers' after consultation with the workers' and employers'
organizations, taking into consideration the views of organizations concerned, authorize employment or
the children directly affected by the worst forms of work as from the age of 16 on condition that the
child labour, their families and, as appropriate, other health, safety and morals of the children concerned
concerned groups committed to the aims of the are fully protected, and that the children have
Convention and this Recommendation. Such received adequate specific instruction or vocational
programmes should aim at, inter alia: training in the relevant branch of activity.

(a) identifying and denouncing the worst forms of child III. Implementation
labour;
5. (1) Detailed information and statistical data on the
(b) preventing the engagement of children in or nature and extent of child labour should be compiled
removing them from the worst forms of child labour, and kept up to date to serve as a basis for
protecting them from reprisals and providing for their determining priorities for national action for the
rehabilitation and social integration through measures abolition of child labour, in particular for the prohibition
which address their educational, physical and and elimination of its worst forms as a matter of
psychological needs; urgency.

(c) giving special attention to: (2) As far as possible, such information and statistical
data should include data disaggregated by sex, age
(i) younger children; group, occupation, branch of economic activity, status
in employment, school attendance and geographical
location. The importance of an effective system of
(ii) the girl child; birth registration, including the issuing of birth
certificates, should be taken into account.
(iii) the problem of hidden work situations, in which
girls are at special risk; (3) Relevant data concerning violations of national
provisions for the prohibition and elimination of the
(iv) other groups of children with special vulnerabilities worst forms of child labour should be compiled and
or needs; kept up to date.

(d) identifying, reaching out to and working with 6. The compilation and processing of the information
communities where children are at special risk; and data referred to in Paragraph 5 above should be
carried out with due regard for the right to privacy.
(e) informing, sensitizing and mobilizing public opinion
and concerned groups, including children and their
families.
Duman / Labor I / Prof. Battad / Page 137
7. The information compiled under Paragraph 5 above remedies, where appropriate, to ensure the effective
should be communicated to the International Labour enforcement of national provisions for the prohibition
Office on a regular basis. and elimination of the worst forms of child labour,
such as special supervision of enterprises which have
8. Members should establish or designate appropriate used the worst forms of child labour, and, in cases of
national mechanisms to monitor the implementation of persistent violation, consideration of temporary or
national provisions for the prohibition and elimination permanent revoking of permits to operate.
of the worst forms of child labour, after consultation
with employers' and workers' organizations. 15. Other measures aimed at the prohibition and
elimination of the worst forms of child labour might
9. Members should ensure that the competent include the following:
authorities which have responsibilities for
implementing national provisions for the prohibition (a) informing, sensitizing and mobilizing the general
and elimination of the worst forms of child labour public, including national and local political leaders,
cooperate with each other and coordinate their parliamentarians and the judiciary;
activities.
(b) involving and training employers' and workers'
10. National laws or regulations or the competent organizations and civic organizations;
authority should determine the persons to be held
responsible in the event of non-compliance with (c) providing appropriate training for the government
national provisions for the prohibition and elimination officials concerned, especially inspectors and law
of the worst forms of child labour. enforcement officials, and for other relevant
professionals;
11. Members should, in so far as it is compatible with
national law, cooperate with international efforts (d) providing for the prosecution in their own country
aimed at the prohibition and elimination of the worst of the Member's nationals who commit offences under
forms of child labour as a matter of urgency by: its national provisions for the prohibition and
immediate elimination of the worst forms of child
(a) gathering and exchanging information concerning labour even when these offences are committed in
criminal offences, including those involving another country;
international networks;
(e) simplifying legal and administrative procedures
(b) detecting and prosecuting those involved in the and ensuring that they are appropriate and prompt;
sale and trafficking of children, or in the use,
procuring or offering of children for illicit activities, for (f) encouraging the development of policies by
prostitution, for the production of pornography or for undertakings to promote the aims of the Convention;
pornographic performances;
(g) monitoring and giving publicity to best practices on
(c) registering perpetrators of such offences. the elimination of child labour;

12. Members should provide that the following worst (h) giving publicity to legal or other provisions on child
forms of child labour are criminal offences: labour in the different languages or dialects;

(a) all forms of slavery or practices similar to slavery, (i) establishing special complaints procedures and
such as the sale and trafficking of children, debt making provisions to protect from discrimination and
bondage and serfdom and forced or compulsory reprisals those who legitimately expose violations of
labour, including forced or compulsory recruitment of the provisions of the Convention, as well as
children for use in armed conflict; establishing helplines or points of contact and
ombudspersons;
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for (j) adopting appropriate measures to improve the
pornographic performances; and educational infrastructure and the training of teachers
to meet the needs of boys and girls;
(c) the use, procuring or offering of a child for illicit
activities, in particular for the production and (k) as far as possible, taking into account in national
trafficking of drugs as defined in the relevant programmes of action:
international treaties, or for activities which involve the
unlawful carrying or use of firearms or other weapons.
(i) the need for job creation and vocational training for
the parents and adults in the families of children
13. Members should ensure that penalties including, working in the conditions covered by the Convention;
where appropriate, criminal penalties are applied for and
violations of the national provisions for the prohibition
and elimination of any type of work referred to in
Article 3(d) of the Convention. (ii) the need for sensitizing parents to the problem of
children working in such conditions.
14. Members should also provide as a matter of
urgency for other criminal, civil or administrative
Duman / Labor I / Prof. Battad / Page 138
16. Enhanced international cooperation and/or the following requirements in all instances
assistance among Members for the prohibition and are strictly complied with:
effective elimination of the worst forms of child labour
should complement national efforts and may, as (a) The employer shall ensure the protection,
appropriate, be developed and implemented in health, safety and morals of the child;
consultation with employers' and workers'
organizations. Such international cooperation and/or
assistance should include: (b) the employer shall institute measures to
prevent the child's exploitation or
discrimination taking into account the system
(a) mobilizing resources for national or international and level of remuneration, and the duration
programmes; and arrangement of working time; and;

(b) mutual legal assistance; (c) The employer shall formulate and
implement, subject to the approval and
(c) technical assistance including the exchange of supervision of competent authorities, a
information; continuing program for training and skill
acquisition of the child.
(d) support for social and economic development,
poverty eradication programmes and universal In the above exceptional cases where any such child
education. may be employed, the employer shall first secure,
before engaging such child, a work permit from the
a. Minors under the Constitution, Art. II, Sec. 13 Department of Labor and Employment which shall
ensure observance of the above requirement.
Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect The Department of Labor Employment shall
their physical, moral, spiritual, intellectual, and social promulgate rules and regulations necessary for the
well-being. It shall inculcate in the youth patriotism effective implementation of this Section.
and nationalism, and encourage their involvement in
public and civic affairs.
Section 13. Non-formal Education for Working
b. Coverage, RA 9231, Sec. 2, par. 3 on Sec.
Children. - The Department of Education, Culture and
12; Book III, Rule XII, Sec. 1 Sports shall promulgate a course design under its
non-formal education program aimed at promoting the
(See Above) intellectual, moral and vocational efficiency of working
children who have not undergone or finished
c. Employment of Children, Art. 139; RA 7610, elementary or secondary education. Such course
Sec. 12-16; DOLE Memo Circular No. 2, S 1998 Re; design shall integrate the learning process deemed
Hazardous and Non-Hazardous Establishments most effective under given circumstances.

RA 7610
Section 14. Prohibition on the Employment of
Children in Certain Advertisements. - No person shall
ARTICLE VIII employ child models in all commercials or
Working Children advertisements promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts and
Section 12. Employment of Children. - Children violence.
below fifteen (15) years of age may be employed
except: Section 15. Duty of Employer. - Every employer shall
comply with the duties provided for in Articles 108 and
(1) When a child works directly under the 109 of Presidential Decree No. 603.
sole responsibility of his parents or legal
guardian and where only members of the Section 16. Penalties. - Any person who shall violate
employer's family are employed: Provided, any provision of this Article shall suffer the penalty of
however, That his employment neither a fine of not less than One thousand pesos (P1,000)
endangers his life, safety and health and but not more than Ten thousand pesos (P10,000) or
morals, nor impairs his normal development: imprisonment of not less than three (3) months but
Provided, further, That the parent or legal not more than three (3) years, or both at the discretion
guardian shall provide the said minor child of the court; Provided, That, in case of repeated
with the prescribed primary and/or violations of the provisions of this Article, the
secondary education; or offender's license to operate shall be revoked.

(2) When a child's employment or

participation in public & entertainment or d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a
information through cinema, theater, radio or
television is essential: Provided, The e. Prohibitions Against Worst Forms of Child
employment contract concluded by the Labor, Sec. 3 on Sec. 12-d; Sec 5 on sec. 14
child's parent or guardian, with the express
agreement of the child concerned, if
possible, and the approval of the Department
of Labor and Employment: Provided, That

Duman / Labor I / Prof. Battad / Page 139

f. Discrimination, Art. 140 Provided, further, That those househelpers who are
receiving at least One thousand pesos (P1,000.00) shall be
g. Jurisdiction, Sec. 9 on Sec. 16-A covered by the Social Security System (SSS) and be entitled
to all the benefits provided thereunder. (As amended by
Reading: Republic Act No. 7655, August 19, 1993).

 Del Rosario and Bonga, Issues and

ART. 144. Minimum cash wage. - The minimum wage rates
Gaps Governing Child Labor, in Child Labor in the
prescribed under this Chapter shall be the basic cash wages
Philippines, A Review of Selected Studies and Policy Papers,
which shall be paid to the househelpers in addition to
pp. 178-183 (2000).
lodging, food and medical attendance.

ART. 145. Assignment to non-household work. - No

househelper shall be assigned to work in a commercial,
industrial or agricultural enterprise at a wage or salary rate
lower than that provided for agricultural or non-agricultural
workers as prescribed herein.

ART. 146. Opportunity for education. - If the househelper is

under the age of eighteen (18) years, the employer shall
give him or her an opportunity for at least elementary
education. The cost of education shall be part of the
househelper’s compensation, unless there is a stipulation to
the contrary.

ART. 147. Treatment of househelpers. - The employer shall

treat the househelper in a just and humane manner. In no
case shall physical violence be used upon the househelper.

ART. 148. Board, lodging, and medical attendance. - The

employer shall furnish the househelper, free of charge,
3. Househelpers/Caregivers suitable and sanitary living quarters as well as adequate
food and medical attendance.
Reference: Arts. 141-152; Omnibus Rules, Book III, Rule
XIII
ART. 149. Indemnity for unjust termination of services. - If
Chapter III the period of household service is fixed, neither the
EMPLOYMENT OF HOUSEHELPERS employer nor the househelper may terminate the contract
ART. 141. Coverage. - This Chapter shall apply to all persons before the expiration of the term, except for a just cause. If
rendering services in households for compensation. the househelper is unjustly dismissed, he or she shall be
paid the compensation already earned plus that for fifteen
(15) days by way of indemnity.
"Domestic or household service" shall mean service in the
employer’s home which is usually necessary or desirable for
the maintenance and enjoyment thereof and includes If the househelper leaves without justifiable reason, he or
ministering to the personal comfort and convenience of the she shall forfeit any unpaid salary due him or her not
members of the employer’s household, including services of exceeding fifteen (15) days.
family drivers.
ART. 150. Service of termination notice. - If the duration of
ART. 142. Contract of domestic service. - The original the household service is not determined either in stipulation
contract of domestic service shall not last for more than two or by the nature of the service, the employer or the
(2) years but it may be renewed for such periods as may be househelper may give notice to put an end to the
agreed upon by the parties. relationship five (5) days before the intended termination of
the service.

ART. 143. Minimum wage. - (a) Househelpers shall be paid

the following minimum wage rates: ART. 151. Employment certification. - Upon the severance of
the household service relation, the employer shall give the
househelper a written statement of the nature and duration
(1) Eight hundred pesos (P800.00) a month for househelpers of the service and his or her efficiency and conduct as
in Manila, Quezon, Pasay, and Caloocan cities and househelper.
municipalities of Makati, San Juan, Mandaluyong,
Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig,
Marikina, Valenzuela, Taguig and Pateros in Metro Manila ART. 152. Employment record. - The employer may keep
and in highly urbanized cities; such records as he may deem necessary to reflect the actual
terms and conditions of employment of his househelper,
which the latter shall authenticate by signature or
(2) Six hundred fifty pesos (P650.00) a month for those in thumbmark upon request of the employer.
other chartered cities and first-class municipalities; and

(3) Five hundred fifty pesos (P550.00) a month for those in

other municipalities.

Provided, That the employers shall review the employment

contracts of their househelpers every three (3) years with
the end in view of improving the terms and conditions
thereof.
Duman / Labor I / Prof. Battad / Page 140
 RULE XIII SECTION 10. Assignment to non-household work. — No
Employment of Househelpers househelper shall be assigned to work in a commercial,
industrial or agricultural enterprise at a wage or salary rate
lower than that provided for agricultural and non-agricultural
SECTION 1. General statement on coverage. — (a) The
workers.
provisions of this Rule shall apply to all househelpers
whether employed on full or part-time basis.
SECTION 11. Opportunity for education. — If the
househelper is under the age of eighteen (18) years, the
(b) The term "househelper" as used herein is synonymous to
employer shall give him or her an opportunity for at least
the term "domestic servant" and shall refer to any person,
elementary education. The cost of such education shall be
whether male or female, who renders services in and about
part of the househelper's compensation, unless there is a
the employer's home and which services are usually
stipulation to the contrary.
necessary or desirable for the maintenance and enjoyment
thereof, and ministers exclusively to the personal comfort
and enjoyment of the employer's family. SECTION 12. Treatment of househelpers. — The employer
shall treat the househelper in a just and humane manner. In
no case shall physical violence be inflicted upon the
SECTION 2. Method of payment not determinant. — The
househelper.
provisions of this Rule shall apply irrespective of the method
of payment of wages agreed upon by the employer and
househelper, whether it be hourly, daily, weekly, or monthly, SECTION 13. Board, lodging and medical attendance. — The
or by piece or output basis. employer shall furnish the househelper free suitable and
sanitary living quarters as well as adequate food and medical
attendance.
SECTION 3. Children of househelpers. — The children and
relatives of a househelper who live under the employer's
roof and who share the accommodations provided for the SECTION 14. Indemnity for unjust termination of service. —
househelpers by the employer shall not be deemed as If the period for household service is fixed, neither the
househelpers if they are not otherwise engaged as such and employer nor the househelper may terminate the contract
are not required to perform any substantial household work. before the expiration of the term, except for a just cause. If
the househelper is unjustly dismissed, he or she shall be
paid the compensation already earned plus that for fifteen
SECTION 4. Employment contract. — The initial contract for
(15) days by way of indemnity.
household service shall not last for more than two (2) years.
However, such contract may be renewed from year to year.
If the househelper leaves without justifiable reason, he or
she shall forfeit any unpaid salary due him or her not
SECTION 5. Minimum monthly wage. — The minimum
exceeding fifteen (15) days.
compensation of househelpers shall not be less than the
following rates:
SECTION 15. Employment certification. — Upon the
severance of the household service relationship, the
(a) Sixty pesos (P60.00) a month for those employed in the
househelper may demand from the employer a written
cities of Manila, Quezon, Pasay and Caloocan, and in the
statement of the nature and duration of the service and his
municipalities of Makati, San Juan, Mandaluyong,
or her efficiency and conduct as househelper.
Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig
and Marikina, in the Province of Rizal.
SECTION 16. Funeral expenses. — In case of death of the
househelper, the employer shall bear the funeral expenses
(b) Forty-five pesos (P45.00) a month for those employed in
commensurate to the standards of life of the deceased.
other chartered cities and first class municipalities; and

SECTION 17. Disposition of the househelper's body. —

(c) Thirty pesos (P30.00) a month for those in other
Unless so desired by the househelper or by his or her
municipalities.
guardian with court approval, the transfer or use of the body
of the deceased househelper for purposes other than burial
SECTION 6. Equivalent daily rate. — The equivalent is prohibited. When so authorized by the househelper, the
minimum daily wage rate of househelpers shall be transfer, use and disposition of the body shall be in
determined by dividing the applicable minimum monthly rate accordance with the provisions of Republic Act No. 349.
by thirty (30) days.
SECTION 18. Employment records. — The employer may
SECTION 7. Payment by results. — Where the method of keep such records as he may deem necessary to reflect the
payment of wages agreed upon by the employer and the actual terms and conditions of employment of his
househelper is by piece or output basis, the piece or output househelper which the latter shall authenticate by signature
rates shall be such as will assure the househelper of the or thumbmark upon request of the employer.
minimum monthly or the equivalent daily rate as provided in
this issuance.
SECTION 19. Prohibited reduction of pay. — When the
compensation of the househelper before the promulgation of
SECTION 8. Minimum cash wage. — The minimum wage these regulations is higher than that prescribed in the Code
rates prescribed under this Rule shall be basic cash wages and in this issuance, the same shall not be reduced or
which shall be paid to the househelpers in addition to diminished by the employer on or after said date.
lodging, food and medical attendance.
SECTION 20. Relation to other laws and agreements. —
SECTION 9. Time and manner of payment. — Wages shall Nothing in this Rule shall deprive a househelper of the right
be paid directly to the househelper to whom they are due at to seek higher wages, shorter working hours and better
least once a month. No deductions therefrom shall be made working conditions than those prescribed herein, nor justify
by the employer unless authorized by the househelper an employer in reducing any benefit or privilege granted to
himself or by existing laws. the househelper under existing laws, agreements or

Duman / Labor I / Prof. Battad / Page 141

voluntary employer practices with terms more favorable to terms and conditions of employment of his househelper,
the househelpers than those prescribed in this Rule. which the latter shall authenticate by signature or
thumbmark upon request of the employer.
a. Definition, Rule XIII, Sec. 1 (b)
CIVIL CODE
(b) The term "househelper" as used herein is synonymous to Art. 1689. Household service shall always be reasonably
the term "domestic servant" and shall refer to any person, compensated. Any stipulation that household service is
whether male or female, who renders services in and about without compensation shall be void. Such compensation
the employer's home and which services are usually shall be in addition to the house helper's lodging, food, and
necessary or desirable for the maintenance and enjoyment medical attendance.
thereof, and ministers exclusively to the personal comfort
and enjoyment of the employer's family.
Art. 1690. The head of the family shall furnish, free of
charge, to the house helper, suitable and sanitary quarters
b. Coverage, Art. 141
as well as adequate food and medical attendance.
ART. 141. Coverage. - This Chapter shall apply to all persons
rendering services in households for compensation. Art. 1691. If the house helper is under the age of eighteen
years, the head of the family shall give an opportunity to the
house helper for at least elementary education. The cost of
"Domestic or household service" shall mean service in the
such education shall be a part of the house helper's
employer’s home which is usually necessary or desirable for
compensation, unless there is a stipulation to the contrary.
the maintenance and enjoyment thereof and includes
ministering to the personal comfort and convenience of the
members of the employer’s household, including services of Art. 1692. No contract for household service shall last for
family drivers. more than two years. However, such contract may be
renewed from year to year.
c. Non-Household Work, Art. 145
Art. 1693. The house helper's clothes shall be subject to
ART. 145. Assignment to non-household work. - No stipulation. However, any contract for household service
househelper shall be assigned to work in a commercial, shall be void if thereby the house helper cannot afford to
industrial or agricultural enterprise at a wage or salary rate acquire suitable clothing.
lower than that provided for agricultural or non-agricultural
workers as prescribed herein. Art. 1694. The head of the family shall treat the house
helper in a just and humane manner. In no case shall
 Apex Mining Co. NLRC, 196 SCRA physical violence be used upon the house helper.
251 (1991)

Art. 1695. House helper shall not be required to work more

than ten hours a day. Every house helper shall be allowed
four days' vacation each month, with pay.

Art. 1696. In case of death of the house helper, the head of

the family shall bear the funeral expenses if the house
helper has no relatives in the place where the head of the
family lives, with sufficient means therefor.

Art. 1697. If the period for household service is fixed neither

the head of the family nor the house helper may terminate
the contract before the expiration of the term, except for a
just cause. If the house helper is unjustly dismissed, he shall
be paid the compensation already earned plus that for
fifteen days by way of indemnity. If the house helper leaves
without justifiable reason, he shall forfeit any salary due him
and unpaid, for not exceeding fifteen days.

Art. 1698. If the duration of the household service is not

determined either by stipulation or by the nature of the
service, the head of the family or the house helper may give
notice to put an end to the service relation, according to the
following rules:

(1) If the compensation is paid by the day, notice

may be given on any day that the service shall
e. Conditions of Employment, Arts. 121-152;
Civil Code, Arts. 1689-1699 end at the close of the following day;

(2) If the compensation is paid by the week,

ART. 151. Employment certification. - Upon the severance of notice may be given, at the latest on the first
business day of the week, that the service shall be
the household service relation, the employer shall give the
househelper a written statement of the nature and duration terminated at the end of the seventh day from the
beginning of the week;
of the service and his or her efficiency and conduct as
househelper.
(3) If the compensation is paid by the month,
notice may be given, at the latest, on the fifth day
ART. 152. Employment record. - The employer may keep
such records as he may deem necessary to reflect the actual
Duman / Labor I / Prof. Battad / Page 142
 of the month, that the service shall cease at the (b) "Employer" means any natural or artificial person who,
end of the month. for his own account or benefit, or on behalf of any person
residing outside the Philippines, directly or indirectly, or
through any employee, agent, contractor, sub-contractor; or
Art. 1699. Upon the extinguishment of the service relation,
any other person:
the house helper may demand from the head of the family a
written statement on the nature and duration of the service
and the efficiency and conduct of the house helper. (1) Delivers or causes to be delivered any goods or articles
to be processed in or about a home and thereafter to be
returned or to be disposed of or distributed in accordance
3. Homeworkers
with his direction; or
a. Coverage and Regulation, Arts. 153-155; DO 5,
DOLE, 4 Feb. 1992, now Book III, Rule XIV (2) Sells any goods or articles for the purpose of having such
goods or articles processed in or about a home and then
ART. 153. Regulation of industrial homeworkers. - The repurchases them himself or through another after such
employment of industrial homeworkers and field personnel processing.
shall be regulated by the government through the
appropriate regulations issued by the Secretary of Labor and
(c) "Contractor" or "sub-contractor" means any person who,
Employment to ensure the general welfare and protection of
for the account or benefit of an employer, delivers or caused
homeworkers and field personnel and the industries
to be delivered to a homeworker goods or articles to be
employing them.
processed in or about his home and thereafter to be
returned, disposed of or distributed in accordance with the
ART. 154. Regulations of Secretary of direction of the employer.
Labor. - The regulations or orders to be
issued pursuant to this Chapter shall be
(d) "Processing" means manufacturing, fabricating, finishing,
designed to assure the minimum terms
repairing, altering, packing, wrapping or handling any
and conditions of employment
material.
applicable to the industrial homeworkers
or field personnel involved.
SECTION 3. Payment for work. — (a) Immediately upon
receipt of the finished goods or articles, the employer shall
ART. 155. Distribution of homework. -
pay the homeworker or the contractor or sub-contractor, as
For purposes of this Chapter, the
the case may be, for the work performed; Provided,
"employer" of homeworkers includes
However, that where payment is made to a contractor or
any person, natural or artificial who, for
sub-contractor, the homeworker shall be paid within the
his account or benefit, or on behalf of
week after the contractor or sub-contractor has collected the
any person residing outside the country,
goods or articles from the homeworkers.
directly or indirectly, or through an
employee, agent contractor, sub-
contractor or any other person: (b) The Secretary of Labor and Employment shall from time
to time establish the standard minimum piece or output rate
in appropriate orders for the particular work or processing to
(1) Delivers, or causes to be delivered,
be performed by the homeworkers.
any goods, articles or materials to be
processed or fabricated in or about a
home and thereafter to be returned or SECTION 4. Deductions. — No employee, contractor, or sub-
to be disposed of or distributed in contractor shall make any deduction from the homeworker's
accordance with his directions; or earnings for the value of materials which have been lost,
destroyed, soiled or otherwise damaged unless the following
conditions are met:
(2) Sells any goods, articles or materials to be processed or
fabricated in or about a home and then rebuys them after
such processing or fabrication, either by himself or through (a) The homeworker concerned is clearly shown to be
some other person. responsible for the loss or damage;

(b) The employee is given reasonable opportunity to show

RULE XIV cause why deductions should not be made;
Employment of Homeworkers
(c) The amount of such deduction is fair and reasonable and
SECTION 1. General statement on coverage. — This Rule shall not exceed the actual loss or damages; and
shall apply to any homeworker who performs in or about his
home any processing of goods or materials, in whole or in (d) The deduction is made at such rate that the amount
part, which have been furnished directly or indirectly by an deducted does not exceed 20% of the homeworker's
employer and thereafter to be returned to the latter. earnings in a week.

SECTION 2. Definitions. — As used in this Rule, the following SECTION 5. Conditions for payment of work. — (a) The
terms shall have the meanings indicated hereunder: employer may require the homeworker to re-do work which
has been improperly executed without having to pay the
(a) "Home" means any room, house, apartment, or other stipulated rate more than once.
premises used regularly, in whole or in part, as a dwelling
place, except those situated within the premises or (b) An employer, contractor, or sub-contractor need not pay
compound of an employer, contractor, and the work the homeworker for any work which has been done on
performed therein is under the active or personal supervision goods and articles which have been returned for reasons
by, or for, the latter. attributable to the fault of the homeworker.

Duman / Labor I / Prof. Battad / Page 143

SECTION 6. Disagreement between homeworkers and _______________________________________
employer. — In cases of disagreement between the
_______________________________________
homeworker and the employer, contractor or sub-contractor
on matters falling under Section 4 (a), 5 and 6 of this Rule, _______________________________________
either party may refer the case to the Regional Office having _______________________________________
jurisdiction over the homeworker. The Regional Office shall _______________________________________
decide the case within ten (10) working days from receipt of
_______________________________________
the case. Its decision shall be final and unappealable.
_______________________________________
SECTION 7. Liability of employer and contractor. —
_______________________________________
Whenever an employer shall contract with another for the _______________________________________
performance of the employer's work, it shall be the duty of _______________________________________
such employer to provide in such contract that the _______________________________________
employees or homeworkers of the contractor and the latter's
sub-contractor shall be paid in accordance with the
_______________________________________
provisions of this Rule. In the event that such contractor or _______________________________________
sub-contractor fails to pay the wages or earnings of his _______________________________________
employees or homeworkers as specified in this Rule, such _______________________________________
employer shall be jointly and severally liable with the
contractor or sub-contractor to the workers of the latter, to
_______________________________________
the extent that such work is performed under such contract, _______________________________________
in the same manner as if the employees or homeworkers _______________________________________
were directly engaged by the employer. _______________________________________
_______________________________________
b. Definition, DO 5, Sec. 2, DO 5 _______________________________________
c. Registration, Secs. 4-6 _______________________________________
_______________________________________
d. Conditions of Employment/Deductions, Secs. 6-9 _______________________________________
_______________________________________
f. Joint and Several Liability of
Employer/Contractor, Sec. 11 _______________________________________
_______________________________________
g. Prohibitions, Sec. 13 _______________________________________
_______________________________________
h. Enforcement, Sec. 10
_______________________________________
_______________________________________
_______________________________________
NOTES: _______________________________________
_______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
Duman / Labor I / Prof. Battad / Page 144
_______________________________________
_______________________________________

K. Mental, Dental and Occupational Safety

Reference: Art. 156-165; Omnibus Rules, Book

IV, Rule I, Secs. 1-10; Rule II, Secs. 1-!0

1. Coverage, Rule I, Sec. 1

2. First Aid Treatment, Art. 156

3. Emergency Medical and Dental Services

a. When Required, Art. 157

b. When Not Required, Art. 158

4. Employer assistance, Art. 161

5. Occupational Safety and Health
Standards, Training of
Supervisor/Technician

a. When Required, Rule II, Secs. 5 (a) (d)

b. When Not Required, Rule II, Sec. 5 (e)

6. Enforcement/DOLE Obligations, Arts.

162-165

Note: Arts. 166-208: repealed by SSS Law of

1997 (RA 1161, as amended); Re: Art. 209, see National
Health Insurance act of 1995 (RA 7875); Book IV, Rule II,
Sec. 8

Duman / Labor I / Prof. Battad / Page 145

L. Employee Classification  Sandoval Shipyards, Inc. v.
NLRC, 136 SCRA 674 (1985)
1. Coverage, Art. 278  Villa v. NLRC, 284 SCRA 105
(1998)
2. Employer Recognition  Chua v. Court of Appeals, 440
SCRA 121 (2004)
 Philippine Federation of Credit
Cooperatives, Inc. v. NLRC, 300 SCRA 72 (1998) 3) Workpool Employees
 Pangilinan v. General Milling corp.,
434 SCRA 159 (2004)  Aguilar Corp. v. NLRC, 269
SCRA 596 (1997)
3. Employer Determination/Designation  Maraguinot v. NLRC, supra
Casual, Art. 280, 2 nd par.; Omnibus rules, Book VI,
 De Leon v. NLRC, 176 SCRA 615 (1989) Rule 1, Sec. 5 (b)
 Violeta v. NLRC, 280 SCRA 520 (1997)
 San Miguel Corporation v. NLRC, 297 1) Nature of Work
SCRA 277 (1998)
 A.M. Oreta and Co. Inc. v.
4. Management Prerogative NLRC, 176 SCRA 218 (1989)
2) One Year Service
 Manila Electric Co. v. NLRC, 263 SCRA
531 (1996)  Kimberly v. Drilon, 185 SCRA
 PAL, Inc. v. Pascua, 409 SCRA 195 190 (1990)
(2003)  Integrated Contractor and
 Coca-cola Bottlers Phil., Inc. Sales Force Plumbing Works, Inc. v. Court of Appeals, 464 SCRA 544
Union-PTGWO-BALAIS v. Coca-cola Bottlers Phil., Inc., GR (2005)
No. 155651, 464 SCRA 507 (2005)  San Miguel Corp. v. Abella,
supra
5. Kinds of Employee
c. Fixed-Term
a. Regular Employees, art. 280, 1st par.; 280, 2nd
par.; 281, last sentence; 75(d); Omnibus rules, Book VI,  Brent School v. Zamora, 181 SCRA
Rule 1, Secs. 5(a), (b) and 6. 702 (1990)
 Palomares v. NLRC, 277 SCRA 439
1) Type (1997)
 Philips Semiconductor etc. v.
 Pangilinan v. General Milling Fadriquela, 422 SCRA 408 (2004)
Corporation., 434 SCRA 159 (2004)
d. Seasonal
2) Nature of Work
 Phil. Tobacco Flue-curing &
 Perpetual Help Credit Corp., Inc. v. Redrying Corp. v. NLRC, 300 SCRA 37 (1998)
Faburada, et al., 366 SCRA 693 ( 2001)  Hacienda Bino v. Cuenca, 456 SCRA 300
 Magsalin v. National Organization of (2005)
Working Men, 403 SCRA 199 (2003)
 Hacienda Fatima v. National Federation e. Probationary
of Sugarcane Workers Food and General Trade, 396 SCRA
518 (2003) 1) Definition
 Pentagon International Shipping, Inc. v.
Adelantar, 235 SCRA 342 (2004)  Philippine Federation of Credit
 Lopez v. Metropolitan Waterworks and Cooperatives, Inc. v. NLRC, supra
Sewerage System, 462 SCRA 428 (2005)  Cebu Marine Beach Resort v. NLRC, 414
SCRA 173 (2003)
3) Extended Period
2) Employer Right to Set Period/Obligation
 Andon Electric co., Inc. v.
NLRC, 308 SCRA 340 (1999)  Orient Express Placement
Philippines v. NLRC, 273 SCRA 256 1997)
4) Repeated Renewal of Contract
3) Duration/Exception
 Maraguinot v. NLRC, 284
SCRA 539 (1998)  A Prime Security Services,
 Universal Plastic Corp. v. Inv. V. NLRC, 322 SCRA 283 (2000)
Catapang, 473 SCRA 189 (2005)  Mitsubishi Motors v. NLRC,
226 SCRA 417 (1993)
b. Project Employee, art. 280, 1st par.
4) Criteria Regularization
1) Definition
 Alcira v. NLRC, 431 SCRA 508
 Imbuido v. NLRC, 329 SCRA (2004)
357 (2000)
 Association of Trade Union v. 5) Extension of Contract
Comm. Abella, 323 SCRA 50 (2005)
 Mariwasa Manufacturing, Inc.
2) Project Employees v. Leogardo, 169 SCRA 465 (1989)

6) Absorbed Employees
Duman / Labor I / Prof. Battad / Page 146
  Willi Hahn Enterprises v. Maghuyo,
 Cebu Stevedoring Co. Inc. v. 447 SCRA 349 (2004)
Regional Director, 168 SCRA 315 (1988)  BMG Records (Phils.), Inc. et al. v.
Aida C. Aparecio, et al., GR 153290, Sept. 5, 2007
7) Rule on Private School Teachers
1) Just Causes, Art. 285 (b)
 Escorpizo v. Univ. of Baguio,
306 SCRA 497 (1999) 2) Without Just Cause – Requisites, Art. 285 (a); Const. Art.
 La Consolacion College v. III, Sec. 18 (2)
NLRC, 366 SCRA 226 (2001)
 Chiang Kai Sheck College v.  Pascua v. NLRC, 287 SCRA
Court of Appeals, 437 SCRA 171 (2004) 554 (1998)
 Azcor v. NLRC, supra
I. Termination of Employment  Phil. Wireless Inc. v. NLRC,
310 SCRA 653 (1999)
1. Coverage, Art. 278; Book VI, Rule 1, Sec. 1  A Prime Security Services, Inc.
v. NLRC, supra
2. Security of Tenure, Art 279; 277 (b)
b. Performance of Military or Civic duty, Art. 286,
a. Nature/Rationale Book VI, Rule I, Sec. 12

 Llosa Tan v. Silahis 4. Termination of Employment by Employer

Internatioinal Hotel, 181 SCRA 738 (1990)
 Sonza v. ABS-CBN a. Basis of Right and Requirements, Arts. 282-
Broadcasting Corp., 431 SCRA 381 (2004) 284; 277 (b)
 Metro Eye Security, Inc. v.
Julie V. Solsona, GR No. 167637, Sept. 28, 2007 1) Basis

b. Coverage  PLDT v. Tolentino, 438 SCRA 555

(2004)
 Labajo v. Alejandro, 165 SCRA 747
(1988) 2) Substantive and Procedural Due Process
 Skihworld Management and
marketing Corporation v. NLRC, 186 SCRA 465 (1990)  Philippine National Bank v.
 Interorient Maritime Enterprises Cabanag, 460 SCRA 514 (2005)
Inc. v. NLRC, 235 SCRA 268 (1994)

c. Management Prerogative

 Philippine American Life & General

Insurance Co. v. Gramaze, 442 SCRA 274 (2004)

d. Requisites for Lawful Dismissal

 Perpetual Help Credit Corp., Inc. v.

Faburada, supra

e. Burden of Proof

 Azcor Manufacturing v. NLRC, 303 SCRA

26 (1999)
 Chavez v. NLRC, supra

f. Measure of Penalty

 Farrol v. Court of Appeals, 435

SCRA 543 (2000)
 Valiao v. Court of Appeals, 435
SCRA 543 (2004)
 Etcuban v. Sulpicio Lines, Inc. 448
SCRA 516 (2005)

g. Factors

 Associated Labor Union v. NLRC,

302 SCRA 708 (1999)
 Philippine Long distance Telephone
C. Inc. v. NLRC, 303 SCRA 9 (1999)

3. Termination of Employment by Employee

a. Resignation

 Cheniver Deco Print v. NLRC, 325

SCRA 758 (2000)
 China Banking Corp. v. Borromeo,
supra
Duman / Labor I / Prof. Battad / Page 147
b. Just Causes – Substantive Due Process  La Carlota Planters Assn.
v. NLRC, 298 SCRA 252 (1998)
1) Serious Misconduct/Willful Disobedience  Ramoran v. Jardine CMG,
(Insubordination) Inc. 326 SCRA 208 (2000)
 Valiao v. Court of Appeals,
supra g) Habitual Infractions
 Villamor Golf Club v. Phil, 472
SCRA 36 (2005)  Gustilo v. Wyeth Phil.,
 Coca-Cola Bottlers, Phil., Inc. Inc., 440 SCRA 67 (2004)
v. Kapisanan ng Malayang Manggagawa sa Coca-Cola, 452
SCRA 480 (2005) h) Immorality
 R Transport Corp. v. Ejaneira,
428 SCRA 725 (2004)  Santos v. NLRC, 287
 Micro Sales Operation SCRA 117 (1998)
Network v. NLRC, 472 SCRA 328 (2005)
i) Conviction of Crime
2) Gross and Habitual Neglect of Duties
 Sampaguita Garments
 Cebu Filveneer Corporation v. Corp. v. NLRC, 233 SCRA 260 1994)
NLRC, 286 SCRA 556 (1998)
 Reyes v. Maxims Tea House, j) Qualification Requirements
398 SCRA 288 (2003)
 Chua v. NLRC, 453 SCRA 244  Lanzaderas v. Amethyst
(2005) Security & General Services, Inc., supra

3) Fraud or Willful Breach of Trust 7) Constructive Dismissal

 Santos v. San Miguel Corp.,  Philippine American Life

399 SCRA 172 (2003) v. Gramaje, 442 SCRA 274 (2003)
 Dela Cruz , NLRC, 416 SCRA  Dinglasan v. Atienza, 433
226 (2003) SCRA 263 (2004)
 Phil. National Construction  Dusit Hotel Nikko v.
Corp. v. Matias, 395 SCRA 720 (2003) National Union in Hotel, Restaurant and Allied Industires,
466 SCRA 374 (2005)
4) Commission of Crime, Art. 282 (d)  Angelina Francisco v.
NLRC, et al., supra
 Sampaguita Garments
Corporation v. NLRC, 233 SCRA 260 (1994) 8) Transfer

5) Analogous, Art. 282 (e)  OSS Security and Allied

Services Inc. v. NLRC, 325 SCRA 157 (2000)
 Cathedral School of  Lanzaderas v. Amethyst
Technology v. NLRC, 214 SCRA 551, 559 (1992) Security and General Services, Inc., supra
 Mendoza v, Rural Bank, etc.,
6) Others – Just Causes Claimed by 433 SCRA 756 (2004)
Employer
9) Promotion
a) Abandonment
 Phil. Telegraph & Telephone Corp.
 Nueva Ecija Electric v. Court of Appeals, 412 SCRA 263 (2003)
Cooperative v. NLRC, 461 SCRA169 (2005)
 Chavez v. NLRC, supra 10) Preventive Suspension
 Floren Hotel v. NLRC,
456 SCRA 128 (2005)  Philippine Airlines, Inc. v. NLRC,
292 SCRA 40 (1998)
b) Courtesy Resignation
11) Residency Training
 Batongbacal v.
Associated Bank, 168 SCRA 600 (1988)  Felix v. Buenaseda, 240 SCRA 139
(1995)
c) Change of Ownership
c. Substantive Requirements – Business Related
 Manlimos v. NLRC, 242 Causes, Art. 283
SCRA 145 (1995)
1) Basis
d) Habitual Absenteeism
 Edge Apparel Inc. v. NLRC, 286
 Union Motor Corp. v. SCRA 302 (1998)
NLRC, 445 SCRA 683 (2004)
2) Business Related or Authorized Causes
e) Fixed-Term Employment
a) Installation of Labor Saving Devices, Art. 283
 Magsalin v. National
Organization of Working Men, supra  Complex Electronics Employees
Assn. v. NLRC, 310 SCRA 403 (1999)
f) Past offenses
b) Retrenchment to Prevent Losses, Art. 283
Duman / Labor I / Prof. Battad / Page 148
  Pepsi-Cola Products Phil., Inc.
 Asian Alcohol Corp. v. NLRC, 305 SCRA v. Court of Appeals, 443 SCRA 580 (2004)
415 (1999)
 NDC-Guthrie Plantations, Inc. v. NLRC, 6) Burden of Proof
362 SCRA 416.(2001)
 Composite Enterprises, Inc. v. Emilio M.  Equitable PCIBank v. Caguioa,
Caparoso, et al., GR No. 159919, Aug. 8, 2007 466 SCRA 658 (2005)

c) Redundancy, Art. 283 7) Degree of Proof/Substantial Evidence

 Asufrin v. San Miguel Corp., 425 SCRA  Philtread Tire & Tubber Corp.
270 (2004) v. Vicente, 441 SCRA 574 (2004)
 Golden Tread Knitting Industries, Inc. v.  Etcuban v. Sulpicio Lines,
NLRC, 304 SCRA 568 Inc., supra
 Lopez Sugar Corp. v. Franco, 458 SCRA
515 (2005) 8) Prescription

d) Closure of Business, Art. 283  Salvador v. Phil. Mining

service Corp., 395 SCRA 729 (2003)
 Mac Adams Metal Engineering
Workers Union-Independent v. Mac Adams Metal 9) Dismissal of Case, Purely on Technical
Engineering, 414 SCRA 411 (2003) Ground
 SSS v. Hon. Chaves, 440
SCRA 269 (2004)  Quintano v. NLRC, 446 SCRA
 ME-SHURN Corporation v. ME- 195 (2004)
SHURN Workers Union-FSM, 448 SCRA 41 (2005)
10) Criminal Cases
e) Temporary Closure, Art. 286
 Quiambao v. NLRC, 254 SCRA
 Valdez v. NLRC, 286 SCRA 87 211 (1996)
(1998)
5. Reliefs/Remedies in Illegal Dismissal, Art. 279; 223
3) Disease, Art 284
a. In General; Twin Remedies
 Vicente Sy v. Court of
Appeals, supra  Nueva Ecija Electric
Cooperative v. NLRC, supra
d. Procedural Requirements, Art. 277 (b); Book VI,  Mt. Carmel College v. Jocelyn
Rule I, Secs. 1-3 Omnibus Rules Resuena, et al., GR No. 173076, October 10, 2007
 Lorenzo Ma. D.G. Aguilar v.
1) In General/Liability for Non-Compliance with Burger Machine Holdings Corp., et al., GR 172062, Feb. 21,
Procedural Requirements 2007

 Serrano v. NLRC, 323 SCRA 1) Reinstatement

445 (2000)
 Santos v. San Miguel Corp., a) Definition
supra
 Agabon v. NLRC, supra  PNOC-EDC, et al. v. Abella,
448 SCRA 549 (2005)
2) Right to Counsel  Pheschem Industrial Corp. v.
Moldez, 458 SCRA 339 (2005)
 Salaw v. NLRC, 202 SCRA 7,
12-15 (1991) b) Effect of Failure to Ask Relief

3) Notice  Pheschem Industrial Corp. v.

Moldez, supra
 Agabon v. NLRC, supra
 Caingat v. NLRC, 453 SCRA c) Exceptions
142 (2005)
i) Closure of Business
4) Hearing
ii) Economic Business Conditions
a) Hearing
 Union of Supervisors (RB)
 Permex, Inc. v. NLRC, 323 NATU, etc. v. Sec. of Labor, 128 SCRA 442 (1984)
SCRA 121 (2000)
 Arboleda v. NLRC, 303 SCRA iii) Employee’s Unsuitability
39 (1999)
 Divine Word High School v.
b) Use of Position Paper NLRC, 143 SCRA 346 (1986)

 Shoppes Manila, Inc. v. NLRC, iv) Employee’s Retirement/Overage

419 SCRA 354 (2004)
 Espejo v. NLRC, 255 SCRA
5) Decision/Award – Const., Art. VIII, Sec. 430 (1996)
14

Duman / Labor I / Prof. Battad / Page 149

 v) Antipathy and Antagonism – Strained  Composite enterprises, Inc. v.
Relations Emilio M. Caparoso, et al., supra

 Acesite Corp. v. NLRC, 449 2) Computation/Rationale

SCRA 360 (2005)
 BPI Employees Union v. BPI,  Business Day Information
454 SCRA 357 (2005) Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993)
 Sagum v. Court of Appeals,  Millares v. NLRC, 305 SCRA
459 SCRA 223 (2005) 500 (1999)

vi) Not Feasible 3) Effect of Receipt

 Bustamante v. NLRC, 265 SCRA 1  Arino v. NLRC, 290 SCRA 489

(1996) (1998)

c) Offer to Reinstate c. Financial Assistance

 Ranara v. NLRC, 212 SCRA 631 1) When Allowed

(1992)
 Philippine Long Distance
2) Backwages Telephone Co. v. NLRC, 164 SCRA 671 (1988)
 Pinero v. NLRC, 437 SCRA 112
a) Effect of Failure to Claim (2004)

 De La Cruz v. NLRC, 299 2) When Not Allowed

SCRA 1 (1998)
 Phil. Construction Corp. v.
b) Effect of Failure to Order NLRC, 170 SCRA 207 (1989)
 Chua v. NLRC, 218 SCRA 545
 Aurora Land etc. v. NLRC, 212 (1993)
SCRA 48 (1997)
 St. Michael’s Inst. v. Santos, 371 e. Indemnity
SCRA 383 (2001)
 Arms Taxi v. NLRC, supra
b) Computation  Serrano v. NLRC, supra

 Mercury Drug Co. Inc. v. CIR, 56 f. Liability of Corporate Officers

SCRA 694 (1974)
 Bustamante v. NLRC, supra  Acesite Corp. v. NLRC, supra
 Torres v. NLRC, 330 SCRA 311
(2000) J. Retirement, Art. 287; Book VI, Rule II, Omnibus
 Kay Products, Inc. v. CA464 SCRA Rules; RA No. 7641; RA No. 8558 (1998) ; Labor Advisory on
544 (2005) Retirement Pay (Oct. 1999)
 Standard Electric Manufacturing
Corp. v. Standard Electric Employees Union, 468 SCRA 316 1. Retirement
(2005)
 BPI Employees Union v. BPI, supra a. Types of Retirement Plan

c) Fringe Benefit  PAL v. Airline Pilots’

Association of the Phil., 373 SCRA 302 (2002)
 Aurora Land etc. v. NLRC, supra  Naguit v. NLRC, 408 SCRA
617 (2003)
b. Damages  Sta. Catalina College v. NLRC,
416 SCRA 233 (2003)
 Collegio de San Juan de Letran-  Gerlach v. Reuters Ltd., Phil.
Calamba v. Villas, 399 SCRA 550 (2003) 448 SCRA 535 (2005)
 Tolosa v. NLRC, 401 SCRA 391
(2003) 1) Basis
 Maguiling v. Phil. Tuberculosis
Society, Inc. 450 SCRA 465 (2005)  Gamogamo v. PNOC shipping
 Acesite Corp v. NLRC, supra and Transport Corp., 381 SCRA 742 (2002)
 Sagum v. Court of Appeals, 459
SCRA 223 (2005) 2) Interpretation
 Central Luzon Conference v. CA,
466 SCRA 711 (04)  Lopez v. National Steel Corp.,
423 SCRA 109 (2004)
c. Separation Pay  Solomon v. Association of
International Shipping Lines, Inc., 457 SCRA 254 (2005)
1) When – As Alternative
4) Eligibility
 Coca-Cola Bottlers Phils. Inc. v.
Vital, 438 SCRA 278 (2004)  Brion v. South Phil. Union
 National Federation of Labor v. Mission of the Seventh Day Adventist Church, 307 SCRA 497
Court of Appeals, 440 SCRA 604 (2004) (1999)
 Etcuban Jr. v. Sulpicio Lines, Inc.,
supra REMINDERS:

Duman / Labor I / Prof. Battad / Page 150

1. Voluntary recitation will be graded generously.
The professor however reserves the right to call on students
for recitation.
2. The 20% rule on absences will be strictly
observed. Three times of tardiness will be considered
absent. All those who come between 15 to 30 minutes after
the class will be marked “late”; after 30 mins, “absent”.
3. No make-up mid-term examination will be given.

REQUIREMENT:

Attendance/Recitation/Assigned Work - 30%

Mid-Term Examination -
30%
Final Examination -
30%

Duman / Labor I / Prof. Battad / Page 151