CHAPTER

11
BASIC LABOR LAW
AFFECTING EMPLOYER-
EMPLOYEE
RELATIONSHIP
INTENDED By the end of the learning
experience, students must be

LEARNING 1. Identify the

able to:
general labor
OUTCOMES standards;
2. Determine the provisions
regarding health and safety in
the workplace; and
3. Determine the Philippine labor
code (selected provisions).
LABOR LAW FOR LEADERS

● There is a need for leaders of organizations to get a

solid background and knowledge of employment and
collective labor law, and how to use labor law in their daily
employment matters. This is because mistakes can be very
costly, both financially and in loss of management-authority.
STATE POLICY ON LABOR

To promote and emphasize the

To promote free trade unionism
A. primacy of free collective B. as an instrument for the
bargaining and negotiations,
enhancement of democracy and
including voluntary arbitration,
the promotion of social justice
mediation and conciliation, as
and development
modes of settling labor or
industrial disputes

C. To foster the free and D. To promote the enlightenment

of workers concerning their
voluntary organization of a
rights and obligations as union
strong and united labor
members and as employees;
movement
GENERAL LABOR STANDARDS

MINIMUM WAGE

Computation of the Estimated Equivalent Monthly Rate (EEMR) Of Monthly Paid

Employees Factor 365 days in a year is used in determining the equivalent annual and
monthly salary of monthly paid employees.
To compute EEMR,
Applicable Daily rate x 365 = EEMR
12

Where 365 days/year= 299 ordinary working days

52 rest days
11 regular holidays
3 special days
365 total equivalent no. of days in a year
 PREMIUM PAY RIGHT TO HOLIDAY PAY

Premium pay refers to Holiday pay refers to

the additional the payment of the
compensation for work regular daily wage for
performed within 8 any unworked regular
hours on nonwork days, holidays.
such as rest days and
special days.
 REGULAR
HOLIDAYS
Every employee is entitled to this holiday pay.
This means that the employee is entitled to at
least 100% of his/her basic wage even if he/she
did not report for work, provided he/she is
present or is on leave of absence with pay on
the work day immediately preceding the
holiday.
Under Executive Order No. 203, as amended by
R. A. 9492, there are eleven (1 1) regular
holidays, as presented in the previous chapter
of this book.
 OVERTIME PAY NIGHT SHIFT DIFFERENTIAL
Overtime pay refers to
Night shift differential refers to
the additional pay for
the additional ten percent (10%)
work performed
compensation to the regular
beyond eight (8) hours
wage of an employee for each
a day.
hour of work performed between
10 : 00 p. m. and 6: 00 a. m.
 RIGHT TO SERVICE
INCENTIVE LEAVE

Every employee who has rendered at least one (1) year of service is entitled
to a yearly service incentive leave of five (5) days with pay.

This benefit does not apply to the following:

 government employees
 domestic helpers and persons in the personal service of another
 managerial employees
 Field personnel and those whose time and performance is unsupervised
by the employer those already enjoying this benefit
 those enjoying vacation leave with pay of at least five (5) days those
employed in establishments regularly employing less than ten (1o)
employees
 AVAILMENT/
COMMUTATIO
N TO CASH
The service incentive leave may be used for
sick and vacation leave purposes. The unused service
incentive leave is commutable to its money equivalent
at the end of the year. In computing, the basis shall be
the salary rate at the date of commutation. The
availment and commutation of this benefit may be on a
pro rata basis.
 PATERNITY
LEAVE

Paternity leave is granted to all married male employees in

the private sector, regardless of employment status. (e. g.,
probationary, regular, contractual, project- based). The purpose of
which is to allow the husband to lend support to his wife during her
period of recovery and/or in the nursing of her newborn child.
 MATERNITY
LEAVE
Every pregnant woman in the private sector, whether
married or unmarried, is entitled to a maternity leave of (60) days in
case of normal delivery, abortion, or miscarriage ; or seventy-eight
(78) days in case of caesarian section delivery with benefits
equivalent to 100% of the average daily salary credit of the
employee as defined under the Social Security Law.
 PARENTAL LEAVE
FOR SOLO
PARENTS
Parental leave for solo parents is granted to any solo parent
or individual who is left alone with the responsibility of parenthood
to enable him/her to perform parental duties and responsibilities
where physical presence is required.
 LEAVE FOR VICTIM OF
VIOLENCE AGAINST
WOMEN AND THEIR
CHILDREN (VAWC)

VAWC leave is granted to private sector women employees

who are victims as defined in Republic Act No. 9262. The leave
benefit shall cover the days that the women employee has to attend
medical and legal concerns.
 SERVICE CHARGES

Employees of employers collecting service charges are

entitled to an equal share in the 85% of the total of such charges,
except managerial employees. The remaining 15% of the charges
may be retained by the management to answer for losses and
breakages and for distribution to managerial employees, at the
discretion of the management in the later case.
 SEPARATION PAY

Separation pay is given to employees in instances covered

by Articles 283 and 284 of the Labor Code. An employee's
entitlement to separation pay depends on the reason or ground for
the termination of his/her services. On the other hand, where the
termination is for authorized causes, separation pay is due.
 13TH MONTH PAY

All employers are required to pay their rank-and-tile

employees regardless of the nature of their employment and
irrespective of-the method by which their wages are paid provided
they worked for at least one (1) month during a calendar year. 13th
month pay should be given to the employees not later than
December 24 of every year.
THE WORKER'S BASIC RIGHTS
EQUAL WORK OPPORTUNITIES FOR ALL

● The State shall protect labor, promote full employment, provide

equal work opportunity regardless of gender, race, or creed and
regulate employee-employer relations.
● Male and female employees are entitled to equal compensation for
work of equal value and to equal access to promotion and training
opportunities. Discrimination against female employees is unlawful.
It is also unlawful for an employer to require a condition of
employment that a woman employee shall not get married or to
stipulate expressly or tacitly that a woman employee shall be deemed
dismissed upon marriage.
SECURITY OF TENURE

Every employee shall be assured security of tenure. No employee can be

dismissed from work except for a just or authorized cause, and only after
due process.

Just cause refers to any wrongdoing committed by an employee including:

1. serious misconduct
2. willful disobedience of employers' lawful orders connected with work
3. gross and habitual neglect of duty
4. Fraud or willful breach of trust
5. commission of crime or offense against the employer, employer's family
member/s or representative
6. other analogous cases
 WORKDAYS AND
WORK HOURS
Workday refers to any day during which an employee is
regularly required to work. Hours of work refer to all the time an
employee renders actual work, or is required to be on duty or to be
at a prescribed workplace. The normal hours of work in a day are 8
hours. This includes breaks or rest period of less than one hour, but
excludes meal periods, which shall not be less than one hour.
 WEEKLY REST DAY

A day off of 24 consecutive hours after 6 days of

work should be scheduled by the employer upon
consultation with the workers.
 PAYMENT OF
WAGES

Wages shall be paid in cash, legal tender at or near the

place of work. Payment may be made through a bank upon written
petition of majority of the workers in establishments with 25 or
more employees and within one (1) kilometer radius to a bank.
Payment shall be made directly to the employees.
 EMPLOYMENT OF
CHILDREN

Minimum employable age is 15 years of age. A worker

below 15 should be directly under the sole responsibility of parents
or guardians; work does not interfere with child's schooling or
normal development.
 RIGHT TO SELF-ORGANIZATION AND COLLECTIVE BARGAINING

The right to self-organization

is the right of every worker, free of any
interference from the employer or from
government, to form or join any
legitimate worker’s organization,
association, or union of his or her own
choice. Except those classified as
managerial or confidential, all
employees may form or join unions for
purposes of collective bargaining and
other legitimate concerted activities. An
employee is eligible for membership in
a appropriate union on the first day of
his or her employment.
 Collective bargaining involves two parties:
1. The representative of the employer and
2. a union duly authorized by the majority of the employees within a
bargaining unit called exclusive bargaining agent.

It is a process where the parties agree:

3. To fix and administer terms and conditions of employment which
must not be below the minimum standards fixed by law and
4. To set a mechanism for resolving their grievances
 PROVISIONS REGARDING HEALTH AND SAFETY IN THE WORKPLACE

SAFE WORKING CONDITIONS

Jobs may be hazardous or
Employers must provide nonhazardous. Hazardous jobs are those
workers with every kind of on- which expose the employee to dangerous
the-job protection against injury, environment elements, including
sickness, or death through safe contaminants, radiation, fire, poisonous
and healthful working substances, biological agents and
conditions. explosives, or dangerous processes’ or
equipment including construction, mining,
quarrying, blasting, stevedoring,
mechanized farming, and operating heavy
equipment.
 EC BENEFITS FOR WORK-RELATED CONTINGENCIES

The Employees'
Compensation Program is the tax-
exempt compensation program for  Medical benefits for
employees and their dependents sickness/injuries
created under Presidential Decree No.
 Disability benefits
626 which was implemented in March
1975. The benefits include:  Rehabilitation benefits
 Death and funeral benefits
 Pension benefits
 RIGHTS TO SAFE AND
HEALTHFUL CONDITIONS
OF WORK
Safety refers to the physical or environmental conditions of work
which comply with prescribed Occupational Safety and Health (OSH)
Standards and which allow the workers to perform the job without or
within acceptable exposure limit to hazards. Occupational safety also
refers to practices related to production and work process.
 OSH STANDARDS

OSH Standards are mandatory rules and standards set and

enforced to eliminate or reduce occupational safety and health
hazards in the workplace.
 AIMS OF OSH
STANDARDS

OSH Standards aim to provide at least the minimum acceptable

degree of protection that must be afforded to every worker in relation to the
working conditions and dangers of injury, sickness, or death that may arise
by reason of the worker's occupation. The provision of OSH Standards by the
State is an exercise of the police power, with the intention of promoting the
welfare and well-being of the workers.
 MINIMUM STANDARD ON
SAFETY AND HEALTH IN
THE WORKPLACE
The OSH Standards provide that every company shall keep and maintain
its workplace free from work hazards that are likely to cause physical harm to the
workers or damage to property. Thus, the worker is entitled to be provided by the
employer with:
 appropriate seats, lighting, and ventilation
 adequate passageways, exits, and firefighting equipment
 separate facilities for men and women
 appropriate safety devices like protective gears, masks, helmets, safety boots,
coats, or first-aid kits
 medicines, medical supplies, or first-aid kits ; and
 free medical and dental services and facilities.
 OTHER SAFETY REQUIREMENTS
EMPLOYERS SHOULD PROVIDE
THEIR EMPLOYEES

Employers must provide their employees with the following instruments and/ or
working stations:
 Appropriate protective equipment and clothing such as overall head coverings,
goggles, gloves, aprons, and respirators A properly designed exhaust system and
waste disposal, local exhaust, or general ventilation to keep toxic fumes or gases
 Adequate number of fire extinguishers in the workplace and
 Designated safe smoking and welding areas far from combustible, flammable, or
explosive materials, containers filled with explosives or flammable substances, and
containers that have held explosives or flammable materials.
 CONSIDERED HAZARDOUS
WORKPLACE
A workplace is deemed hazardous if:
 The nature of the work exposes workers to dangerous environmental elements,
contaminants or work conditions, including ionizing radiation, chemicals, fire,
flammable substances, noxious components, and the like
 The workers are engaged in construction work, logging, firefighting, mining, quarrying,
blasting, stevedoring, dock work, deep-sea fishing, and mechanized farming
 The workers use or are exposed to heavy or power-driven machinery or equipment
 The workers are engaged in the manufacture or handling of explosives and other
pyrotechnic products;
 The workers use or are exposed to biological agents such as bacteria, viruses, and other
parasites.
 DUTIES AND RESPONSIBILITIES OF THE EMPLOYERS AND THE
EMPLOYEES IN RELATION TO ENFORCEMENT AND COMPLIANCE WITH
OSH STANDARDS IN THE WORKPLACE
DUTIES OF THE
EMPLOYERS  Submit report to the regional director or
 Adopt administrative policies on his/her duly authorized representative
safety in accordance with the once in every three months on the safety
provisions of the Standards performance, safety committee meetings,
and its recommendations and measures
 Report to the regional director or taken to implement the recommendation;
his/her duly authorized
representative the policies  Act on recommended
adopted and the safety safety measures
organization established
 DUTIES OF THE
EMPLOYEES
 Follow safety policies
 Report unsafe conditions and practices to the supervisor
 Serve as member of the Health and Safety Committee
 Cooperate with Health and Safety Committee
 Assist government agencies in the conduct of safety and health inspection.
 THE PHILIPPINE LABOR CODE
(SELECTED PROVISION)

A major breakthrough in the field of labor management

relations in the Philippines was the promulgation of the Labor Code
in 1974. The Labor Code is divided into seven books as follows:
 Book I - Pre-Employment - deals with the recruitment and
placement of workers to promote and maintain a state of full
employment through improved manpower training, allocation, and
utilization including regulating the employment of aliens, and the
establishment of a registration and/or work permit system, and to
insure careful selection of Filipino workers for overseas employment
in order to protect the good name of the Philippines abroad.
 SELECTED PROVISIONS
FROM BOOK I OF THE
LABOR CODE
 Art. 18. Ban on direct-hiring. No employer may hire a Filipino worker for
overseas employment except through the Boards and entities authorized by
the Secretary of Labor.
 Art. 22. Mandatory remittance of foreign exchange earnings. It shall be
mandatory for all Filipino workers abroad to remit a portion of their foreign
exchange earnings to their families, dependents, and/or beneficiaries in the
country in accordance with rules and regulations prescribed by the Secretary
of Labor.
 Book II-Human Resource
Development Program

its objective is to develop human resources, establish

training institutions, and formulate such plans and programs that
will ensure efficient allocation, development, and utilization of the
nation's manpower and thereby promote employment and
accelerate economic and social growth. It covers two main subjects,
the national manpower development program and the training and
employment of special workers such as apprentice, learners, and
handicapped workers.
 Book III - Conditions of
Employment

includes provisions on working conditions and rest periods that

deals with hours of work, weekly rest periods, holidays, service incentive
leaves, and service charges. Provisions about wages including prohibitions
regarding wages and working conditions for special groups of employees
such as employment of women, minors, house helpers, and home workers
are-also included in this book.
Selected provisions about wages include forms of payment, time of
payment, place of payment, and direct payment of wages.
 Book IV - Health, Safety
and Social Welfare
Benefits

covers medical, dental, and occupational health and safety,

employees’ compensation, and State Insurance Fund including the
provision for medical care as amended and adult education.
 Book V-Labor
Relations

covers the major labor laws, the role/functions of the National

Labor Relation Commission (NLRC), National Conciliation and Mediation
Board (NCMB), and Bureau of Labor Relations (BLR). It gives a
comprehensive discussion on labor organization, collective bargaining
agreements, grievance machinery and voluntary arbitration, conciliation
and mediation, strikes and lockouts. It includes act of unfair labor practices
that both the employer and labor organizations may commit.
 Book VI-Post
Employment

a security of tenure law updating R. A. No. 1052 and R. A. No.

1787 known as the Termination Pay Law. It also deals with the different
labor laws pertaining to resignation, layoff, and retirement form the
service.
 DEPARTMENT OF LABOR
AND EMPLOYMENT (DOLE)

The Department of Labor and Employment (DOLE) started as a

small bureau in 1908. It became a department on December 8, 1933 with the
passage of Act 4121. The DOLE is the national government agency mandated
to formulate and implement policies and programs, and serves as the policy-
advisory arm of the Executive Branch in the field of labor and employment. It
consists of the Office of the Secretary, 7 bureaus, 6 services, 16 regional
offices, 12 attached agencies, and 38 overseas offices with a full manpower
complement of 9, 806 as of May 2011.
 ORGANIZATION
AND FUNCTIONS

The Department has exclusive authority in the

administration and enforcement of labor and employment laws and
such other laws as specifically assigned to it or to the Secretary of
Labor and Employment.
THE END.