Entrepreneurship 12 Name___________________________________ Score ____________ Prefi

MODULE
3 Labor Code of the Philippines (II)

Statutory Benefits (employed/self-employed/voluntary/OFW)

All employees, temporary, provisional, or permanent, have a right to the following benefits:
a. Social Security benefits that provides a package of benefits in the event of death, disability, sickness, maternity, and old age
(retirement- lump sum/ monthly) (RA 1161, as amended by RA 8282)
b. PhilHealth benefits that provide inpatient hospital and outpatient care services for SSS-registered employees and dependents
(RA 7875, as amended by RA 9241)
c. PAG-IBIG or Home Development Mutual Fund, which is a provident savings fund for employees (RA 9679). Benefits
available from the fund are dividend‐earning savings, short‐term loans, and housing program.
d. Coverage under the Employees Compensation Program (ECP) for loss in income benefit due to inability to work (arising from
temporary or permanent disability), reimbursement of the cost of medicine and payment to medical service providers,
rehabilitation services (e.g., physiotheraphy), carer’s allowance, and death benefits (Presidential Decree 626)
Employment of Women
Art. 130. Night work 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;
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 night-time unless she is given a period of rest of not less than nine (9) consecutive hours.
The following are acts of discrimination:
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 equal value; and
b. Favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship
grants solely on account of their sexes.
Employment of Handicapped
Art. 78. Definition. Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or
injury.
Art. 79. When employable. Handicapped workers may be employed when their employment is necessary to prevent curtailment of
employment opportunities and when it does not create unfair competition in labor costs or impair or lower working standards.

Termination of Employment
Art. 293. Coverage. The provisions of this Title shall apply to all establishments or undertaking, whether for profit or not.
Art. 294. Security of Tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a
just cause. An employee who is unjustly dismissed from work shall be entitled to r einstatement without loss of seniority rights and
other privileges and to his full back wages, inclusive allowance, and to his other benefit or their monetary equivalent computed from
the time his compensation was withheld from him up to the time of his actual reinstatement.
Art. 295. Regular and Casual Employment. The provisions of written agreement to the contrary notwithstanding and regardless of the
oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform
activities which are usually necessary or desirable in the usual business or trade of the employer. Except where the employment has
been fixed for a specific project.
An employee shall be deemed to be casual if he/she has rendered at least one year of service, whether such service is continuous or
broken, shall be considered as regular employee with respect to the activity in which he is employed and his employment shall
continue while such activity exists.
Art. 296. Probationary Employment. Probationary employment shall not exceed six (6) months from the date the employee started
working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been
engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance
with reasonable standards made known by the employer to the employee at the time of his engagement.
1. Probationary- 6 months at least
2. Casual- 1 year
3. Contractual- depends on the contract
4. Regular- free and open contract
Art. 297. Termination by Employer. An employer may only terminate the employment of a worker under the following circumstances:
1. Serious misconduct or wilful disobedience by the employee of the lawful orders of his employer or representative in
connection with his work;
2. Gross and habitual neglect by the employer of his duties (absence without leave)
3. Fraud or wilful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
4. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family
or his duly authorized representatives
Art. 300. Termination by Employee. (a) An employee may terminate without just cause the employee-employer relationship by serving
a written notice on the employer at least (1) month in advance. The employer upon whom no such notices was served may hold the
employee liable for damages.
(b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:
1. Serious insult by the employer of his representative on the honor and person of the employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his representative;
3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the
immediate members of his family.

Entrep 12 page 2 Prefinal

FT1. Encircle the letter of best answer.
1. The workers worked as cargadores at the warehouse and rice mills of farm A for several years. As cargadores, they loaded, unloaded and
pilled sacks of rice from the warehouse to the cargo trucks for delivery to different places. They were paid by Farm A on a piece-rate basis.
Are the workers considered regular employees?
a. Yes, because Farm A paid wages directly to these workers without the intervention of any third party independent contractor;
b. Yes, their work is directly related, necessary and vital to the operations of the farm;
c. No, because Farm A did not have the power to control the workers with respect to the means and methods by which the work is to
be accomplished;
d. A and B.
2. Work may be performed beyond eight (8) hours a day provided that:
a. Employee is paid for overtime work an additional compensation equivalent to his regular wage plus at least 25% thereof;
b. Employee is paid for overtime work an additional compensation equivalent to his regular wage plus at least 30% thereof;
c. Employee is paid for overtime work an additional compensation equivalent to his regular wage plus at least 20% thereof;
d. None of the above.
3. The following are instances where an employer can require an employee to work overtime, except:
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 and property, or imminent danger to public safety;
b. When the country is at war or when other national or local emergency has been declared by the national assembly or the chief
executive;
c. When there is urgent work to be performed on machines, installations, or equipment or some other cause of similar nature;
d. Where the completion or contribution of the work started before the eight hour is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer.
4. Thea owns and operates a carinderia. Her regular employees are her husband, his two (2) children, the family maid, a cook, two (2)
waiters, a dishwasher and a janitor. The family driver occasionally works for him during store hours to make deliveries. On April 09, the
dishwasher did not report for work. The employer did not give his pay for that day. Is the employer correct?
a. No, because employees have a right to receive their regular daily wage during regular holidays;
b. Yes, because April 09 is not regular holidays;
c. Yes, because of the principle of "a fair day’s wage for a fair day’s work";
d. Yes, because he employs less than ten (10) employees.
5. Iya, 15 years old, signed up to model a clothing brand. She worked from 9am to 4pm on weekdays and 1pm to 6pm on Saturdays for two
(2) weeks. She was issued a child working permit under RA 9231. Which of the following statements is the most accurate?
a. Working permit for Iya’s employment is not required because the job is not hazardous;
b. Her work period exceeds the required working hours for children aged 15 years old;
c. To require a 15-year old to work without obtaining the requisite working permit is a form of child labor;
d. Iya, who was engaged in a work that is not child labor, is a working child.
6. The provisions of the Labor Code on the Working Conditions and Rest Periods of employees are inapplicable to the following employees, except
a. A supervisor in a fast food chain; c. A family driver;
b. A laborer without any fixed salary, but receiving a compensation depending upon the result of his work; d. A contractual
employee.
7. In what situation is an employer permitted to employ a minor?
a. 16-year old child actor as a cast member in soap opera working 8 hours a day, 6 days a week; c. 17 -year old construction
worker;
b. A 17-year old in deep sea-fishing; d. A 17-year old assistant cook in a family restaurant.
8. Who among the following is not entitled to 13th month pay?
a. Stephanie, a probationary employee of a cooperative bank who rendered six (6) months of service during the calendar year before
filing her resignation;
b. Rafael, the secretary of a Senator;
c. Selina, a cook employed by and who lives with an old maid and who also tends the sari-sari store of the latter;
d. Roger, a house gardener who is required to report to work only thrice a week.
9. Jennifer, a receptionist at Company X, is covered by the SSS. She was pregnant with her fourth child when she slipped in the bathroom of
her home and had a miscarriage. Meanwhile, Company X neglected to remit the required contributions to the SSS. Jennifer claims maternity
leave benefits and sickness benefits. Which of these two may she claim?
a. None of them; b. Both of them; c. Only maternity leave benefits; d. Only sickness benefits.
10. Which is not a regular holiday?
a. New Year's Eve; b. Eidil Fitr; c. Father's Day; d. Independence Day.
FT2. Answer what is being asked.
1. Betha, single mother earning 12,300 a month, has been an active member of SSS for the past 20 months. She became pregnant and out of
wedlock on her 7th month of pregnancy, she was informed that she would have to deliver the baby through because of some complications.
Can she claim her maternity benefits? If yes, how many days can she go on maternity leave and how much can she receive? If not, why is
she not entitled?
2. Brod, a worker at ABC Company, was on leave with pay on March 31, 2010. He reported for work on April 1 and 2, Maundy Thursday
and Good Friday, respectively, both regular holidays. Is Brod entitled to holiday pay for the two successive holidays? Explain.
3. After working from 10 am to 5 pm on a Thursday as one of 5,000 employees in a beer factory. Danny hurried home to catch early evening
news and have dinner with his family. At around 10 pm of the same day, the plant manager called and ordered Danny to fill in for Noda who
missed the second shift.
 a. May Brod validly refuse the plant manager’s directive? Exlpain.
b. Assuming that Brod was made to work from 11 pm on Thursday until 2 am on Friday, may the company argue that, since he was
two hours late in coming to work on Thursday morning, he should only be paid for work rendered from 1 am to 2 am? Explain.
FT3. Compute the following and encircle your final answer.
1. Ranessa is a senior medtech of a private hospital earning 25, 000 pesos monthly with 4 days leave per month. Last month, she has a duty
of 9 shifts at night. Calculate the amount of her salary plus the payment of her night shift differential.
25, 000 / 26- 961.54
961.54/ 8 = 120.19
120.19 x 10%= 12.02
12.02 pesos x 8 hours x 9 days= 865.37 + 25, 000
25, 865.37 pesos
2. Yanna is about to give birth to her 3 rd son next month through a normal delivery, if she is earning 15,400 a month as an employee, then
how much will she receive as an SSS member?
15, 400 x 6 months = 92, 400
92, 400 / 180 days = 513. 33 (average daily salary credit)
513.33 x 105days =53, 899. 65
3. BPO employee, Shiela, decided to spend her holy week working (Maundy Thursday and Good Friday). If her daily wage rate is 1,090
pesos then how much will she receive for the two holidays added to her daily income?
1,090 x 2 =2, 180
1, 090 x 2= 2,180
4, 360 pesos in two holidays

END